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INTRODUCTION

ABOUT THE TOPIC

Marketing is typically seen as the task of “creating, promoting &

delivering” goods & services to consumers and business. The marketing mix is the

set of marketing tools that the firm uses to purpose marketing objectives in target

markets. The sales comparison and sales promotion

Marketing is indeed an ancient art it has been practiced in on from or the

other since the day of Adam and Eve, its emergence as a management discipline

however is of relatively recent origin. And with in this short period, it has gained so

much importance and stature that today most management thinkers and parishioners

throughout the world view it as the most important of all management functions in

any business.

“Marketing is the process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods, and services to create exchanges that

satisfy individual and organizational goals”.

-American marketing association

“ --- an organizational function and a set of process for creating

communicating, and delivering value to customers and for managing customer

relationships in way that benefit the organization and its stake holders”.

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Human activity directed at satisfying needs and wants through exchange

process.

--- Philip Kotler

“… The on going process or moving people closer to marketing a decision to

purchase, use fallow, refer, upload, down load, obey, reject, confirm, become

complacent to some one else’s products services or values. Simply, if it doesn’t

facilitate a “sale” then it’s not marketing.

“The thing process of anticipating, identifying and satisfying customer

requirements profitably” chartered Institute of marketing.

-----Chartered Institute of Marketing.

The sales comparison is one of the three major groupings of valuation

methods, called the three approaches to value, commonly used in real estate

appraisal. This approach compares a subject property's characteristics with those of

comparable properties which have recently sold in similar transactions. The process

uses one of several techniques to adjust the prices of the comparable transactions

according to the presence, absence, or degree of characteristics which influence

value. As such, all sales comparison approach methods are variations on hedonic-

type measurements, which determine the value of something as the sum of the value

of the various components which contribute utility.

Sales displays are the act of putting things for view or on view. In sales

management, sales display means “arranging systematically saleable goods so as to

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attract the attention of the customer”. Advertising helps in awareness, reminding and

informing customers about products and services. The actual product is not

displayed in advertising. Sales displays fulfill that need by appealing to the eye of

the prospects. Through a sales display, the manufacturer shows the goods or services

to the customer. In the past sales display was the only media for exhibiting products

and inducing prospects to buy the same. Sales displays are actually advertising at the

point of purchase.

Sales promotion is another important component of the marketing

communication mix. It is essentially a direct and immediate inducement. It adds

extra value to the product and hence prompts the dealer/consumer to buy the

product.

The committee on definition of the American marketing association

defines sales promotion as follows.

‘In a specific sense, sales promotion includes those sales activities that

supplement both personal selling and advertising, and coordinate them and make

them effective, such as displays, shows , demonstrations and other non-recurrent

selling efforts not in the ordinary routine.

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Soft Drink Industry is a typical consumer product industry and has come a

long way since its genesis in 1772. Around 1807 in U.S., Bottled soda was being

manufactured on a large scale. Joseph Hawkins has invented a Machine and

obtained the first recorded patent for manufacturing bottles carbonated with in 1809.

Today millions and millions of bottles are consumed every day all over the

world. With the changing trends and habits, social and cultural differences among

different countries are fast disappearing. Soft Drink culture has come up

enormously through out the world. In almost all of the countries, Soft Drinks were

consumed despite the varying factors like age, income, profession, climate etc. This

has lead to the enormous increase in the Soft Drink Market.

They had being number of significant and far reaching changes in the globe.

The disintegration of the USSR has been the most crucial one for the business of the

world. As a result, there has been rethinking on the part of several governments to

open their economy for international business. Accordingly, several of them have

been pursuing market oriented economic policies.

Soft Drink Industry was considered as one of the typical consumer products

industry. In India soft drinks manufacturing unit was first started by M/s. Parle

(Exports) Pvt. Ltd., Mumbai in the year 1949.

Later Coca-Cola export corporation CCEC started its unit in Delhi in the

year 1950. It captured the Indian Market and became the market leader of soft drink

industry with in a short period.

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In the early days, the concentrate was imported from an overseas plant of

CCEC. In 1958, it’s own plant was setup at Delhi for manufacture of concentrate.

It has 22 plants operated in 13 stages through 2, 00,000 retail outlets.

In 1971 sales touched Rs.637.78 lachs yielding profits of Rs.51.37 lachs

before taxes. By 1976-77 margin before taxation was 55% - 60%, which is

35% - 40% more than that consumer goods gradually fetch. It enjoyed the

monopoly powers as the market leader in the industry in the year 1975 government

stipulated that it should dilute its equity of 40% to the Indian brands and transfer its

technology to India.

The CCEC agreed to former condition and did not accept the later one as it

wanted to keep allusion and quality control office in India to control its COKE

concentration. In 1977 CCEC left the country. The gap created by the exit of

CCEC laid a favorable ground for the indigenous products to capture the market.

After Coca-Cola bid a sad farewell in 1977, the Indian market was open for

various new cool drinks and several companies come forward pursuing different

brands in the market. Parle Exports Pvt. Ltd., introduced there cola “Thums Up”

with a mighty bank saying “Happy drinks are here again” pure drinks of Delhi also

without loosing much time introduced Campa Cola along with Campa Orange and

Campa Lemon.

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Modern bakeries a Government of India enterprise too entered the market

with Double Seven and Moan Marketing with Marry and Pick Up. With this in the

Indian high vantage advertising was on. The competition in the soft the peak drinks

reached to stage. With Pepsi foods entering the Indian Market.

Pepsi has introduced its Coal “Lehar Pepsi” in 1989 with attractive

advertisements. At present the main competitors are Coca-Cola and Pepsi Foods.

Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri was a subsidiary to Sri

Sarvaraya Sugars Limited, Chelluru. There was another Bottling Unit under the

same company at Sathupalli. Both Vemagiri and Sathupalli units operate under the

same management. The Vemagiri Unit was given the franchise of Parle (Exports)

Pvt. Ltd., in 1968. Its area of Distribution is East and West Godavari Districts in

Andhra Pradesh. In April 1991 the Districts of Chandrapur and Gatcheroli in

Maharashtra and Raipur, Durg, Rajnndogan and Bastar Districts in Madhya Pradesh

have been allotted to the company for distribution of Parle soft drinks. The supply

of soft drinks to these areas is being made from the Sathupalli Unit. Sri Sarvaraya

Sugars Limited, Bottling Unit, Vemagiri, was situated at Vemagiri on National

Highway No.5 which is about 10 Kms. From Rajahmundry. It manufactures aerated

waters like Coca-cola, Thums Up, Sprite, Fanta, Limca, Maaza and Kinley Club

Soda and proposes to expand its activities by introducing Coca-Cola & Fanta to

about 12,000 crates per day.

From 1968 to 1984, the Vemagiri Unit operated with a capacity of 200 BPM.

The actual expansion of the plant was started from 1984. In 1984, a new Bottle

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Washer and New Filler were purchased and a separate Administrative Building was

built in the premises.

In 1991, a New Maaza plant with Hot Process was built which posted over 5

to 6 Lakhs. In 1994, the company proposed to install a new Bottling Line costing

about Rs.10.5 Crores to meet the increased demand on the capacity due to the

introduction of Coca-Cola and other brands. The machinery is totally imported from

Germany. By the end of July, 1995, the production was started.

Earlier, crates were handled manually. Now they are taken in pallet with a

capacity of 32 crates per palet. This is lifted by Fork Lifter which costed Rs.7

Lachs. This system is at present working for unloading the empty bottles from the

vehicles and it is also being tried for loading purpose. If loading is done manually, it

requires ten people to work for one hour to load a truck. But with the above system,

it takes only 30 min. with four people. Thus, the Bottling Unit is trying to

mechanize to the possible extent.

The Vemagiri Bottling Unit is the Franchise that buys concentrate from

HCCBPL and prepares the carbonated drinks and market them in the Area allotted

to it. The bottler is under license of the parent company but it acts as an independent

organization with class links to the parent company HCCBPL.

For taking up the production of Coca-Cola brand, any bottling unit should

introduce paramix Rs.2 Crores and plastic crates and bottles contains Rs.2 Crores on

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the hold for the expansion of plant, for importing the machinery and for other

facilities. Rs.16 Crores are being invested by the B.U. at present HCCBPL sales in

AP are 135 Lachs creates.

Sales displays are the act of putting things for view or on view. In sales

management, sales display means “arranging systematically saleable goods so as to

attract the attention of the customer”. Advertising helps in awareness, reminding and

informing customers about products and services. The actual product is not

displayed in advertising. Sales displays fulfill that need by appealing to the eye of

the prospects. Through a sales display, the manufacturer shows the goods or services

to the customer. In the past sales display was the only media for exhibiting products

and inducing prospects to buy the same. Sales displays are actually advertising at the

point of purchase.

Sales promotion is another important component of the marketing

communication mix. It is essentially a direct and immediate inducement. It adds

extra value to the product and hence prompts the dealer/consumer to buy the

product.

The committee on definition of the American marketing association

defines sales promotion as follows.

‘In a specific sense, sales promotion includes those sales activities that

supplement both personal selling and advertising, and coordinate them and make

them.

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OBJECTIVES OF THE STUDY

• To know the sales promotion efficiency of dealers or S.S.S. Ltd., Bottling

Unit, Vemagiri and S.S.S. Ltd., B.U.

• To make extensive study on the existing sales promotion

• To show the sales comparison between the branded product separated by the

Sri sarvaraya sugars bottling

• To give and idea about every detail of the product such as quality, price,

supply.

• To acquire the information regarding of the practical of the organization

• To know the various factors affecting the sale of the product.

• To give information regarding after sales service of a product.

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NEED FOR THE STUDY

The modern world emphasizes an purposeful learning experience under

natural condition to meet the cut-throat competition existing in the world .so under

such circumstances a project can be defined as “a purposefully dedicated effort in

social environment to each and nourish in the present world” so summer training

undergone is of immense benefit to us. The training undergone gives lot of practical

exposure and the real working environment.

After a vivid knowledge of management theories and practice it becomes

very essential practical implementation of everything learned. So in order to meat

the challenge, we marched towards common goal. The training enabled us a real

platform of life to implement the knowledge gained. So the knowledge in the nature

practical workers condition of a corporate house.

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SIGNIFICANCE OF THE STUDY

In a competitive market, sales promotion, sales promotion comes handy to a

marketer, to solve of his short-term hurdles. Short term because, the impact of sales

promotion measures is not that durable and lasting like the results obtained through

advertising and personal selling. Sales promotion, by and large, is understood and

practiced as a catalyst, and a supporting facility to advertising and personal selling.

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SCOPE OF THE STUDY

 This study gives information regarding the history of soft drinks and

particularly the market history of Coca-Cola drinks.

 The study gives an analysis on the marketing performance of Coca-Cola soft

drinks.

 The study concentrates on analyzing the satisfaction levels of the customers

in Amalapuram.

 100 respondents were chosen at random for the purpose of the study.

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METHODOLOGY OF THE STUDY

The purpose of Market Research was to know about the sales promotion of

retailers of S.S.S.Ltd., Bottling Unit, Vemagiri.

The data collected and observation made during the interviews were

analysed qualitatively & quantitatively to arrive to a conclusion about the sales

promotion efficiency of retailers of S.S.S. Ltd., B.U. Vemagiri.

I. Sampling Procedure:

(a) Method: Stratified Random Sampling.

(b) Sampling Unit : Retailers

Geographical Variants – Semi – Urban & Rural

Business Variants – Pan Shops – Departmental Stores – Hotels & Others

(c) Sample Size : 100

II. Data Collection:

Methods: Observation & Structured – Interviews with officials & Retailers.

III. Source of Data Collection:

Through primary and secondary sources required data was collected. Data

relating to the organization was collected from the records of the organization with

the interviews with the officials.

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IV. Methods of Data Collection:

Most of the retailers are illiterates. So they are not able to fill up the

questionnaire on their own. Accordation so schedule was prepared & formulated in

a manner so as to make sure that the pre-defined objectives were achieved. The

schedule had prepared after care & thought.

V. Techniques employed for Survey:

The mode of survey, which I have used in collection of the primary data is

“personal interviews”.

In personal interview I asked the respondent in a face to face interaction and

noted down the observations & responses.

The main purpose of choosing interviews as a mode of survey.

 It requires relatively shorter period of time to complete.

 Researchers can procure different types of information.

 There exists a personal interaction between the investigator and the

respondent so the data obtained will be more reliable & valid.

Field Work :

The survey was conducted at

 Amalapuram areas.

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Covering the retailers of Coca-Cola product a schedule of questions used for

the in-depth interviewing of the retailers. The schedule included all the necessary

type of questions, which were more than enough to achieve the research objective.

The field work, which was included in my project work, was around 30-40 days and

it was one of the best experiences, which was helped as per my expectations.

Most of the respondents have given a very good response, but there were

cases when it became difficult to set the response but I tried my level best to

convince them in order to get the unbiased information. But the survey has thought

me that it is difficult work, and no doubt. I have displayed a high degree of

patience, in order to achieve the information from respondents. I tried my level best

to present the collected information by clearly explaining the research objectives to

hesitate the respondents.

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LIMITATIONS OF THE STUDY

 To study of soft drinks industry, this is to be known to be seasonally

fluctuating one, does not taken account seasonal fluctuations.

 Time and expenses are major constraints.

 Unavailability of recent information due lack of awareness of the retailers.

 The study is limited to Amalapuram only.

 The sample which has been taken for the study is too small to study the

market share in amalapuram.

 The duration of the study for two months is constraint to achieve at

conclusion regard the market share of COKE.

 The material provided by the management for this project study is not

sufficient.

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SOFT DRINK INDUSTRY PROFILE

Evolution of Soft Drinks:

Soft Drink Industry is a typical consumer product industry and has come a

long way since its genesis in 1772. Around 1807 in U.S., Bottled soda was being

manufactured on a large scale. Joseph Hawkins has invented a Machine and

obtained the first recorded patent for manufacturing bottles carbonated with in 1809.

Today millions and millions of bottles are consumed every day all over the

world. With the changing trends and habits, social and cultural differences among

different countries are fast disappearing. Soft Drink culture has come up

enormously through out the world. In almost all of the countries, Soft Drinks were

consumed despite the varying factors like age, income, profession, climate etc. This

has lead to the enormous increase in the Soft Drink Market.

They had being number of significant and far reaching changes in the globe.

The disintegration of the USSR has been the most crucial one for the business of the

world. As a result, there has been rethinking on the part of several governments to

open their economy for international business. Accordingly, several of them have

been pursuing market oriented economic policies. All the countries had to enter this

line in time with the global changes.

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INDUSTRY SCENARIO

Soft Drink Industry was considered as one of the typical consumer products

industry. In India soft drinks manufacturing unit was first started by M/s. Parle

(Exports) Pvt. Ltd., Mumbai in the year 1949.

Later Coca-Cola export corporation CCEC started its unit in Delhi in the

year 1950. It captured the Indian Market and became the market leader of soft drink

industry with in a short period.

In the early days, the concentrate was imported from an overseas plant of

CCEC. In 1958, it’s own plant was setup at Delhi for manufacture of concentrate.

It has 22 plants operated in 13 stages through 2,00,000 retail outlets.

In 1971 sales touched Rs.637.78 lachs yielding profits of Rs.51.37 lachs

before taxes. By 1976-77 margin before taxation was 55% - 60%, which is

35% - 40% more than that consumer goods gradually fetch. It enjoyed the

monopoly powers as the market leader in the industry in the year 1975 government

stipulated that it should dilute its equity of 40% to the Indian brands and transfer its

technology to India.

The CCEC agreed to former condition and did not accept the later one as it

wanted to keep allusion and quality control office in India to control its COKE

18
concentration. In 1977 CCEC left the country. The gap created by the exit of

CCEC laid a favorable ground for the indigenous products to capture the market.

After Coca-Cola bid a sad farewell in 1977, the Indian market was open for

various new cool drinks and several companies come forward pursuing different

brands in the market. Parle Exports Pvt. Ltd., introduced there cola “Thums Up”

with a mighty bank saying “Happy drinks are here again” pure drinks of Delhi also

without loosing much time introduced Campa Cola along with Campa Orange and

Campa Lemon.

Modern bakeries a Government of India enterprise too entered the market

with Double Seven and Moan Marketing with Marry and Pick Up. With this in the

Indian high vantage advertising was on. The competition in the soft the peak drinks

reached to stage. With Pepsi foods entering the Indian Market.

Pepsi has introduced its Coal “Lehar Pepsi” in 1989 with attractive

advertisements. At present the main competitors are Coca-Cola and Pepsi Foods.

Indian Soft Drinks Market:

Market Size:

Soft Drinks include all types of non-alcoholic carbonated flavored or

sweetened beverage. Soft Drinks are mostly placed inbottles and come in a variety

of flavors. Soft Drink manufacturing in India was first introduced by Parle in 1948.

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With the introduction of fruit based soft drinks packed in tetra packs the

bottled soft drinks market has an estimated size of 130 million cases per annum (1

case = 24 bottles) which is worth around Rs.1,400 crores with an annual growth rate

of about more than Rs.1 Crore.

The population of India is over 100 crores and retail outlets are over 3 lakhs

compare to Philippines where the population is only 60 million and retail outlets

more than 4 lakhs.

The per capita consumption of soft drinks in India is very low at 3.5 bottles

per annum. Presently there are approximately 12 crores consumers in India and in

Delhi alone there are 12 lakh consumers. It was estimated that by the end of this

year India’s share to the world market will be around 0.5% to 1%.

Delhi is the largest consumer of soft drinks in India with an annual

consumption of 75 lakh cases. Mumbai stands second with 50 lakh cases. Together

they account for 25% of the national sale.

There is tremendous growth potential in India but the per capita consumption

has not grown as the focus was mainly on the four metros and some important urban

cities. Focus on the rest of the country especially the rural areas has been ignored.

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Simple arithmetic reveals why Coca-Cola and Pepsi are battling it out the

India Market even with the pathetic per capita consumption. This is because Indians

consume 2.7 billion cases or soft drinks every year. USA on the other hand with its

population 200 million consumes only 80 millions every year.

It is assumed in the study that soft drink market can triple and grow at a rate

2001 is 15% or 20% per annum for the rest or the country. In the beverage market,

which is worth over 2,000 Crores, more than 50% of the entire sales take place in

the month of May and June.

SOFT DRINK – SECTOR OVERVIEW:

 Background

 Segmentation

 Consumer habits and practices

 Market Size and Growth

 Major players and Market Share

 Distribution Networks

 Manufacturing Process

 Retailer’s Perception

Background:

Non-alcoholic soft drink beverage market can be divided into fruit drinks

and soft drinks.

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Soft drinks can be further divided into carbonated and non-carbonated

drinks. Cola, Lemon and Oranges are carbonated drinks while mango drinks come

under non-carbonated category. The soft drinks market till early 1990s was in hands

of domestic players like Campa, Thums Up, Limca etc but with opening up of

economy and coming MNC players Pepsi and Coke are the leaders in carbonated

drinks market in India it is Pepsi which scores over Coke but this difference is fact

decreasing (courtesy huge ad-spending by both players). Pepsi entered Indian

market in 1991 coke re-entered (After they were thrown out in 1977, by the then

central government) in 1993.

Pepsi has been targeting its products towards youth and it has struck right

chord with the market and the sales have been doing well by sticking to this youth

bandwagon. Coke on the other hand struggled initially in establishing it self in the

market. In a span of 7 years of its operations in the country it changed its CEO four

times but finally they seem to have started understanding the pulse of India

consumers.

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

boom consumption. Fountains also dispense them in disposable container.

Segmentation:

The soft drink market can be segmented on the basis of place of consumption

or on the basis of type of products.

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The variable “place of consumption” divides the market into two parts:

 On – premises – 80% of the consumption of soft drinks is on premise ie.,

restaurants, railway stations, cinemas etc.,

 At-home-the rest 20% of the market comprises of the soft drink purchased

for consumption at home.

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

products and non-cola products.

Cola products account for nearly 61 – 62% of the total soft drinks market.

The brands that fall in this category are

 Pepsi

 Coca-Cola

 Thums Up

 Diet Coke

 Diet Pepsi

Non-Cola segment which constitutes 36% can be divided into 4 categories

based on the types of flavours available namely:

 Orange

 Cloudy Lime

 Clear Lime

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 Mango

M/s PARLE (EXPORTS) PRIVATE LIMITED

M/s Parle (Exports) Pvt. Ltd., was a 100% Indian private owned company

belonging to the Shaun brothers. It has its head quarter at Vice Parle in Bombay.

Basing on that name of site the company got its name as Parle. It started its

production of soft drinks in the year 1948.

In the year 1962, the Parle Group was spilt into two divisions.

 Biscuits Division

 Soft Drinks Division

Again in 1966-67, bottling division was spilt into later groups.

 Parley (Exports) Pvt. Ltd., which supplies the concentrate and provides

promotional activities to all its 50 franchises and

 Parle Beverages which looks after its own bottling plants located in Mumbai

and Delhi.

The company is selling over 40 million crates earning annually Rs.150

Crores. In Andhra Pradesh, Parle is having 9 franchise units located at Hyderabad,

Secunderabad, Khammam, Kurnool, Nellore, Guntur, Vijayawada, Rajahmundry

and Visakhapatnam.

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In Vemagiri the franchise unit is the S.S.C. & B.U. Industries Limited. It is

manufacturing and marketing the products to 2 districts, East and West Godavari

Districts & Khammam.

ATLANTA BEGINNINGS :

It was 1886, and in New York, workers were constructing the status of

Liberty. Eight Hundred miles away another great American Symbol was about to be

unveiled.

Like many people who change history, John Pemberton, a Civil War Veteran

and Atlanta Pharmacist, inspired buy simple curiosity. He loved tinkering with

medical formulas, and one afternoon, searching for quick core for headaches, he

stirred up a fragrant, caramel-colored liquid in a three-legged pot. When it was

done, he carried it a few doors down to Jacob’s Pharmacy.

In first year, the company sold about 9 glasses of Coca-Cola a day. A

century later, the Coca-Cola Company has produced over 10 billion gallons of

syrup. 886-1991, Pemberton sold the company to Atlanta businessman as Griggs

Candler for a total about $ 2300. Candler would become the company’s first

president and the first to bring real vision to the business and brand.

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SAFEGUARDING THE BRAND

1899

The aggressive promotion worked. By 1895 Candler had build syrup plants

in Chicago, Dallas and Los Angeles. Inevitability, the Soda’s popularity led to a

demand for it to enjoyed in new ways. In 1894, Mississippi businessman named

Joseph Bieedenharn became the first to put the drink in bottles. When in 1889, two

Chattanooga lawyers, Benjamin F. Thomas and Joseph B. White head, secured

exclusive rights from him to bottle and sell the beverage for the sum of one dollar.

THE WOODRUFF LEGACY

1909

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. In 1916, the root glass company or Terre haute, Indian, began

manufacturing the famous contour bottle.

As the country roared into the new censure, the Coca-Cola Company grew

rapidly, moving into Cuba, Puerto Ricol, France and the other countries and U.S.

Territories. In 1900, there were two bottlers of Coca-Cola by 1920 there would be

about 1000.

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THE WAR AND ITS LEGACY

1920 & 1930

Perhaps no person had more impact on the Coca-Cola Company than Robert

Woodruff. In 1923, five years after his father Ernest purchases the company

President. Woodruff was a marketing genius that saw opportunities for expansion

everywhere. He captivated foreign market with innovative campaigns. Coca-Cola

traveled with the US team to the 1928 Amsterdam Olympics; the logo was

emblazoned on racing dog sleds in Canada and the walls of bullfighting arenas in

Spain. Woodruff pushed development and distribution of the six-pack, the open top

cooler, and all innovations that made it easier for people to drink Coca-Cola.

A WORLD OF CUSTOMERS

1960’s

New brands introduced Sprite, Fanta, Fresca and TAB joined in 1960’s Mr.

Pibb and Mello Yello in 1970’s coke and cherry coke in 1980’s and POWERADE

and Fruitopia in 1990’s.

1970’s & 1980’s

After 75 years of amazing success with brand Coca-Cola the company

decided to expand new flavors sprite in 1961, Tab in 1963 and Fresca in 1966. The

international appeal of Coca-Cola was emboded by 1971 commercial, were a group

of young people from all over the world gathered on a hilltop in Italy to sing, “I

would like to buy the world a coke.” In 1978, the Coca-Cola company was selected

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as the only company allowance to sell packet cool drinks in the people’s republic of

China.

COCA-COLA NOW

21st Century

In Feb. 2000, Doug draft was named Company’s Chairman. Coca-Cola is

huge international company but draft’s vision is to have the company operate as a

collection of smaller, locally run business. “No one”, draft points out “decide to

enjoy of our product globally.”

That’s why Coca-Cola is committed to local markets, to paying attention to

what people form different cultures and backgrounds like to drink, and where and

how they want to drink it. Every ten seconds, 1,26,000 people chose to reach for

one of the coca-cola company brands, and it is the company’s mission to make the

choice executing and satisfying, every single time.

The present unit in Rajahmundry performs the activity of bottling. The

manufacture the drink, package and distribute it locally. They produce accreted

water with flavors of Coca-Cola, Thums Up, Sprite, Fanta, Limca, Soda (Kinley).

And the sale products are water and Maaza.

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THE UP OF PARLE WITH COKE:

After a long period of 16 years Coca-Cola (coke) India Ltd., has read the

Indian market. M/s. Parle (Exports) Pvt. Ltd., got merged with coke India Limited

in November 1993 under the agreement that all of Parle with be marketed under the

brand name of Coke India Ltd., There are many reasons for multinational companies

showed interest to set up their own units in India, Coke also wanted to enter the

Indian Market again after a period of 16 years. Already coke international company

entered in the market, heavy competition from the Pepsi Foods Pvt. Ltd., The

competition between these two companies may be too severe to parle. To withstand

their position in the market and to survive in the long run are multinational

companies and with them in terms of Rupees, which has very low value when

compared to a Dollar. In order to survive in the long and with stand in the market

position, Parle got merged with Coke India Ltd., rather than fighting with

multinationals. The other advantages for the Parle group by the merging are:

• Dollar to Rupee Value

• Rapid Market Development

• Much Exposure

• International Image.

The Coke India Limited is having its plants, 2 in Kolkatta and 4 in Delhi. In

beginning it has launched its products Coca-Cola in Amritsar, Chandigarh,

Ludhiana, Kolkatta, and Delhi. The response to the product to the products is very

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encouraging. The next launch was in Chennai, Hyderabad and Secunderabad. The

product was launched in October 1994 in Visakhapatnam October 1995 in total it

has 18 plants.

Coke India Ltd., is the principal supplier of concentrate to all franchise units

of Parle. Coke is manufacturing and marketing only 4 products which are shown in

table 1.4 with the up coke can market the other flavored products of Parle Brands,

there by giving the products a higher international image. The coke has 81% market

share and Pepsi and Artos and remaining market share.

COKE PRODUCTS MANUFACTURED AND MARKETED ABROAD

PRODUCT FLAVOUR
Coca-Cola Cola

Sprite Clear Lime

Fanta Orange

Thums Up Cola
Table no:2.1

G) CURRENT AND FUTURE OF THE SOFT DRINKS IN INDIA

CURRENT STATUS:

The market for soft drinks in India is 120 million crates (24 bottles per

crate). It has been growing at 5.6% per annum for the last few years. It seems like a

lot, but according to markets, this amounts to just 3 bottles per capita.

CONSUMER HABITS AND PRACTICES

30
Soft drinks come under the category of products purchased in impulse. This

attitude of impulse buying is slowly changing to occasion-led buying and also to

some extent to consumption through home refrigeration particularly in urban

countries.

The market is slowly moving from non alcoholic carbonated drinks to fruit

based drinks and also to plan bottled water due to lower price and ready availability.

Consumers purchase soft drinks to quench thirst. Therefore people traveling

and not having access to hygienic water reach out or soft drinks. This accounts for a

large part of sales.

Brand awareness plays a very crucial role in purchase decisions.

Consumers prefer convenient and economy products.

Availability in the chilled form effects the purchase decision. This has made

both the companies to push its sales and to increase its retail distribution by offering

Visi Coolers to retailers.

While there is no aversion to consumption of soft drinks by any age group,

the main consumers of this market are people in the age group of 30 and below.

MARKET SIZE AND GROWTH:

31
Soft drink market size FY00 was around 270mm cases (6840mm bottles).

The market, which was witnessing 5% growth in the early 90’s and even slower

growth at around 2-3 % in late 80’s. Presently the market growth has slowed down

with growth rate of 7-8 % per annum compared to 22% growth rate in the previous

year. The Market size for FY01 is expected to be 7000 mm bottles.

YEAR PRODUCTION
90-91 2195
91-92 2490
92-93 2800
93-94 3000
94-95 3240
95-96 4000
96-97 4450
97-98 4920
98-99 5670
99-00 6480
00-01 7000
01-02 7400
02-03 7800
03-04 8100
04-05 8400
05-06 8600
Table no:2.2

MARKET CHARACTERISTICS:

The soft drink market is highly skewed in terms of place consumption, in

terms of regional distribution and soft drink flavors as well as in terms of SKU’s

while 80% of the consumption is impulse based outside home 20% comes from

consumption at home. This trend is slowly changing with increase in occasion led

sales. Changing life style, increasing urbanization and impact of liberalization has

slowly and gradually started moving the market from impulse led to occasion led

and home refrigeration led consumption.

32
The market preference is highly regional based. While Cola drinks have

main markets in metro cities and northern states UP, Punjab, Haryana etc. Orange

flavored drinks are popular in southern states. Sodas too are sold largely in southern

states besides through bars. Western markets have preference towards mango

flavored drinks Diet coke presently constitute just 0.7% of the total carbonated

beverage market.

In terms of SKU’s the market is skewed towards 300 ml which constitutes

around 80-85% of the market rest is in the form of other pack sizes. But with

occasion led and home refrigeration led consumption the sales of bigger SKU’s like

more than one litre pack sizes has increased this has led to increase in contribution

from PET bottles sales to 15% of the total turnover in FY00 most of the Pet bottle

sales, up to 75% are in urban areas. Pepsi’s Cola product is targeted towards youth

while the Mirinda and 7UP positioned on fun platform and for enjoying light

moments of life.

The distribution network or Coca-Cola had 6.5 lakh out lets across the

country FY 2000 which the company is planning to increase to 8 lakhs by FY 2001.

On the other hand Pepsi Co’s distribution network had 6 lakhs outlets across the

country during FY 2000 which it is planning increase to 7.5 lakhs by FY 2001.

MAJOR PLAYERS AND MARKET SHARES :

33
The soft drink market in India is dominated by the two global majors Pepsi

and Coca-Cola. Coca-Cola which had wound up its India operations during the

introduction of the FERA regime, reentered 16 years later in 1993. Coca-Cola

acquired major chunk of the son drink market by buying local brands. Thums Up,

Limca and Gold Spot from Parle beverages. Coca-Cola has also acquired Cadbury

Schweppes soft drink brands Crush, Canada Dry and Sport Cola in 1999 and now

recently in October’00 it acquired distribution rights of these brands from IFB Agro

Limited. Pepsi although started a couple of years before Coca-Cola in 1991, has a

lower market share today. It has bought over Mumbai based Duke’s range of soft

drink brands. Both the cola manufacturers come up their own market share figures

and claim to have increased their share. Recently in August 2000 Pepsi claimed to

have increased its market share for first 5 months of calendar year 2000, to 49%

from earlier levels of 47.3% while Coke claims to have increased its share in the

market to 57% in the same period from 55% in the corresponding period last year.

Coke figures are based on Orgy’s data while that of Pepsi are based in IMRB data.

MARKET SHARE (in %)

Brand Name Market share in (%) Market Share (in %)

(ORG fig) IMRB figures


Pepsi 41 49

Coca-Cola 57 48
Table no: 2.3

There is no involvement of wholesalers in the distribution of products. It is

more like an agent network. The companies have divided the country into various

34
regions and established a franchisee in each region. The franchisees have their own

bottling plants and manage all the day to day operation. However, of late, the soft

drink companies have started setting up company owned bottling units have been

acquiring some of its franchise bottles.

MANUFACTURING PROCESS:

Soft drinks may be carbonated or non-carbonated. For carbonated drinks

carbonation forms a critical part of the process. In carbonated carbon dioxide is

dissolved in the water, which is used in manufacturing the drink. Normally, the

ingredients in soft drinks are as follows-acidulate (citric, malic or phosphoric acid),

sweetener, flavor and preservative.

In a bottling plant, soft drink Company’s supply concentrates to the bottlers

where it is diluted in distilled water along with other ingredients in specific

proportions. The quality of this mixture is maintained through strict controls.

RETAILERS PERCEPTION :

A survey was conducted to study the retailer’s views of the present market,

future trends and the consumer behavior patterns. The findings of the survey are as

follows:

Retailers stated that the consumers are loyal to the particular segment of the

soft drink ie., Cola, Orange or Lemon. But as far the loyalty for the brands in each

segment is concerned, it is not very significant.

35
43% of the retailers surveyed told that in soft drinks advertising is the key

component in driving sales. While 32% stated promotional schemes and 20% brand

loyalty as the reason.

As consumers are not very brand loyal where the purchase of soft drinks is

concerned. The retailer push becomes a critical issue. They usually sell the product

in which they get the maximum benefit. For this the companies try to offer them

higher margins.

While distributors get margin of Rs.8-9 per catre (1catre = 24 bottles) at 3-

4% of MRP, retailers are given a margin of 10-12% of MRP. The retailers are not

happy with this as the cost of refrigeration is very high for soft drinks, to over come

this problem the companies are offering Visi-coolers scheme to their main retailers.

CLASSIFICATION:

Classification based on packaging

 Bottled Soft Drinks

 Tetra Packs, Dispenses

 Cans

 Pet Bottles

PROBLEMS SPECIFIC TO INDIAN SOFT DRINK INDUSTRY :

36
The Government of India has considered the soft drink as non-essential. As

a result, the government on the bottled soft drink levied heavy excise duty. Today

soft drink costs Rs.5 to Rs.50. Based on the quality to the customers. However, in a

country like India where 40% of the population exists below poverty line consumers

cannot afford such price. As a result the trading activity of the soft drinks are

concentrated in and around major towns and cities where the purchasing power of

the people and standard of living is high.

Growth rate of this industry in India is also not encouraging, Infact, data

from the Ministry of Food Processing show that growth rate in the soft drink market

was the minimum in 1996.

Changes in technology and consumer tastes brought about many changes in

the Indian Soft Drink Industry from the time of introduction or soft drink in India till

today.

PROFILE OF SRI SARVARAYA SUGARS LIMITED, BOTTLING UNIT,

VEMAGIRI.

Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri was a subsidiary

to Sri Sarvaraya Sugars Limited, Chelluru. There was another Bottling Unit under

the same company at Sathupalli. Both Vemagiri and Sathupalli units operate under

the same management. The Vemagiri Unit was given the franchise of Parle

(Exports) Pvt. Ltd., in 1968. Its area of Distribution is East and West Godavari

37
Districts in Andhra Pradesh. In April 1991 the Districts of Chandrapur and

Gatcheroli in Maharashtra and Raipur, Durg, Rajnndogan and Bastar Districts in

Madhya Pradesh have been allotted to the company for distribution of Parle soft

drinks. The supply of soft drinks to these areas is being made from the Sathupalli

Unit. Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri, was situated at

Vemagiri on National Highway No.5 which is about 10 Kms. From Rajahmundry.

It manufactures aerated waters like Coca-cola, Thums Up, Sprite, Fanta, Limca,

Maaza and Kinley Club Soda and proposes to expand its activities by introducing

Coca-Cola & Fanta to about 12,000 crates per day.

From 1968 to 1984, the Vemagiri Unit operated with a capacity of 200 BPM.

The actual expansion of the plant was started from 1984. In 1984, a new Bottle

Washer and New Filler were purchased and a separate Administrative Building was

built in the premises.

In 1991, a New Maaza plant with Hot Process was built which posted over 5

to 6 Lakhs. In 1994, the company proposed to install a new Bottling Line costing

about Rs.10.5 Crores to meet the increased demand on the capacity due to the

introduction of Coca-Cola and other brands. The machinery is totally imported from

Germany. By the end of July, 1995, the production was started.

Earlier, crates were handled manually. Now they are taken in pallet with a

capacity of 32 crates per palet. This is lifted by Fork Lifter which costed Rs.7

38
Lachs. This system is at present working for unloading the empty bottles from the

vehicles and it is also being tried for loading purpose. If loading is done manually, it

requires ten people to work for one hour to load a truck. But with the above system,

it takes only 30 min. with four people. Thus, the Bottling Unit is trying to

mechanize to the possible extent.

The Vemagiri Bottling Unit is the Franchise that buys concentrate from

HCCBPL and prepares the carbonated drinks and market them in the Area allotted

to it. The bottler is under license of the parent company but it acts as an independent

organization with class links to the parent company HCCBPL.

For taking up the production of Coca-Cola brand, any bottling unit should

introduce paramix Rs.2 Crores and plastic crates and bottles contains Rs.2 Crores on

the hold for the expansion of plant, for importing the machinery and for other

facilities. Rs.16 Crores are being invested by the B.U. at present HCCBPL sales in

AP are 135 Lachs creates.

SALES GROWTH of Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri

Year Growth Rate (In %)

1991-92 14

1992-93 28

1993-94 18

1994-95 13

1995-96 17

1996-97 21

1997-98 19

39
1998-99 17

1999-00 18

2000-01 16

2001-02 21

2002-03 24

2003-04 26

2004-05 29

2005-06 31

Table no:3.1

Flavours Introduction specification of Years

S.No. Name of the Product Flavour Date of Introduction


1. Limca Cloudy Lemon 1972 February
2. Maaza Mango 1976 November
3. Thums Up Cola 1978 June
4. Bisleri Club Soda Soda 1982 June
5. Coca-Cola Cola 1995 July
6. Fanta Orange 1996 January
7. Sprite Clear Lime 1999 May
Table no: 3.2

PLANT CAPACITY:

The company installed a Semi Automatic Plant conforming the layout, the

present capacity of the plant is 600 bottles per minute per shift of 8 hours i.e., 15,000

40
crates and for the hour 1875 crates. In summer season production in 4 shifts

produce 22,500 crates. Recently company started another B.U. of at Kesavaram of

starting production capacity of 600 BPM.

LOGO

ORGANISATION:

It is the grouping of activity necessary to attain the objective of the company.

The activities are assigned to people with authority to fulfill the goods.

The Managing Director is the Head of the Organization. He is In-charge of

Production and Marketing and other activities. Production manager is given the

charge of complete production.

PLANNING :

Strategic planning sets the stage for the rest of the planning in the process or

developing and maintaining a strategic planning between the organizations goals and

41
capabilities and its changing the organizational objectives and selecting strategies to

achieve these objectives.

PLANT SCHEDULE :

In fixing each brand on the basis of availability of empty bottles, market

demand and inventory position of tilled bottles. The warehouse can facilitate and so

the production is also limited to the capacity of the warehouse.

RAW MATERIALS :

The raw materials required for manufacturing various brands of soft drinks

are flavor, essence and concentrates of cola, which are supplied by parle, Sugar and

water are required Sugar is taken from S.S.S. Ltd., and water is supplied by

borewells, two bore wells are available in the S.S.S.Ltd., B.U. Water is treated with

chemicals and purified (ie., Water treatment plant capacity is 4,00,000 M 3. The

following chemicals are required HCL, Naocl, Nachl, Shamp, Nact2 and Co2. Above

chemicals are used in water treatment plant.

PLANT LAYOUT:

According to the sequence of operations the machines and equipments are

an-anged. The machinery and workers are specialized in the performance of

specific operations such as preparations of Syrup, filling the bottles aerating and

42
sealing the bottles with lids. All these operational approach is a continuous

movement. The layout of the bottling plant installed by the company to produce soft

drink is a line layout.

QUALITY CONTROL:

The company takes great care to maintain the quality or the products or their

factory. The bottles are carefully examined for impurities continuously as the

bottles move out. Random samples are taken every half an hour and subjected to

chemical analysis in the laboratory.

The flavour content, Sugar Percentage, Smell, Appearance and Taste of the

product are checked.

INCENTIVES TO THE PRODUCTION STAFF:

The company is giving incentives to all the markets engaged in production.

They had given moral wages and the incentives are paid in addition to their wages

when production target per shift is achieved. In the peak demand seasons, the extra

4 hours worked by the worker is paid double the normal wages.

COMPETITORS FOR S.S.S. LTD., BOTH UNIT :

Apart from competition from organization sector like Pepsi, Mc Dowells

etc., S.S.S.Ltd., Each unit is facing competition from the unorganized sectors was

33% now it has reduced considerably to the negligible number. The main

competitors from the unorganized sector are Artos, Vimal, Bajaj and N.V.R. Drink.

43
Artos is selling Rs.5 per bottle and Vimal and Bajaj at Rs.5.00 per bottle. There

local competitors survive in the market only because of price factor basically. They

are exempted from the central excise duty and as such they are maintaining an

approximate difference of Rs.35 per crate. Their activity is restricted to semi rural

markets and these products could not be able to create any image or identity.

ORGANISATION STRUCTURE:

Organization structure is a basic framework within which the manager’s

decision making behavior takes place. Structure basically deals with relationships.

Organization structure is the pattern of relationship among various components of

parts of the organization. This prescribes the relationships among various activities

and positions. Since various persons hold these positions, the structure is the

relationships among people and the organization.

There are two types of organizations they are Formal organization and

informal organization. Organization chart is the vital tool for providing information

about organizational relationships. Such a chart diagrammatically form which

shows the major functions and their respective relationships, the channels of formal

authority and the relative authority of each manager who is in-charge of each

44
respective function. The organization chart shows only formal relationships, the

informal relationships are mostly transitory and flexible. So they are not depicted on

the chart. Moreover, it depicts formal relationships only at a given point of time.

Organization charts can be divided into master charts and supplementary

charts. The master chart shows the entire formal organization structure. The

supplementary charts show details of relationships. Authorities and the duties

within the prescribed area of department or major component of the company.

Organization Structure of Marketing Department

Board of Directors

Managing Director

Manager

Sales Manager

Asst Sales Manager

45
Marketing Marketing Marketing Marketing Marketing Marketing

Marketing

Executives Executives Executives Executives Executives Executives

Executives

Diagram no: 3.1

SALES PROMOTION COCA-COLA IN INDIA

In today’s economy, most producers don’t sell their goods directly to the

ultimate users. Between them and final users stands a host of marketing

intermediaries a variety of functions and bearing a variety of names. Product’s

characteristics have a higher influence over the channel that is to be used. Each

product is a bundle of attributes. Some attributes such as perish ability, bulkiness,

degree of product standardization, Service requirements and unit value often are the

very imprint implications for channel design.

The channel used by HCCBPL for the distribution of its products clearly

reveals that bulky should have minimum handling turnover. If the soft drinks are

manufactured and bottled with the HCCBPL degree of product standardization,

service requirements and unit value often are the very imprint implications for

channel design.

46
The channel used by HCCBPL for the distribution of its products clearly

reveals that bulk products should have turnover. If the soft drinks are manufactured

and bottled with the CI’s sell the concentrate to the bottles and markets the product

in the fined franchisee areas through retailers in the given franchise areas. It is the

distribution of the franchisee to set up his own distribution system, the ultimate aim

behind it being efficient catering.

Franchising Lisa system of distribution under a licensing system through

which the owner of a product. Method or service approaches independent

businessmen in selected territories appoints them as sole franchisee for particular

areas and encourages them to make profit for themselves whilst the owner retains

control over the technique or style with which the product or service is

merchandised.

Franchising involves conferring temporary monopoly rights of production

and/or distribution of specified goods or services by the producer to an agency.

Franchise system for consumer products like soft drinks may be defined as a

business form essentially consisting of an organization (the franchiser) with a

market tested business package, centered on a product or service entering into a

continuing contractual relationship with franchisees. Typically self-financed and

independently owner managed small firms, operating under the franchiser’s, trade

47
name to produce and/or market goods or services according to a format specified by

the franchiser.

PROFILE OF Coca-Cola India

The profile of CCI can be studies under two heads ie., profile of Parle

(Exports) Pvt. Ltd., and profile and the profile CCI . Parle (Exports) Pvt. Ltd.,

entered into a joint venture with Coca-Cola in 1993. The main reason behind

Parle’s entry into this Joint Venture is that with the entry of two multinational

companies, it is difficult for Parle to retain its Bottling Plants. Before the entry of

Pepsi’s entry 7 of them have gone to Pepsi and Parle was left with 48 B.U.’s. Now

if Coca-Cola enters India on its own, then probably another 10 B.U’s may go to it

and the result is increase in the area of operation and parle faces the problem of loss

in market share. Many people were of the opinion that if coke enters India, then

Thums Up will definitely loose its hold in the market. A survey was organized by

A&M in 1994, one year after the launch of coke and found that Thums Up is the

most powerful soft drinks brand for all three family members polled.

With increase in the area of operation and with the capacity of the B.U’s

remaining same, the availability of parle products may become a problem in some

areas and in some seasons. In soft drink industry, availability plays a vital role. If

this aspect is overlooked, Parle definitely foregoes its market share in the long run.

So in order to retain its position, Parle entered into a Joint Venture with Coca-Cola.

Parle brands are named as Acquired brand by Coca-Cola. When we consider the

above aspect, we can say that Ramesh Chauhan, President, Parle (Exports) Pvt. Ltd.,

48
has taken a right step at the right time. Now the company’s name is Coca-Cola

India (CCI).

Parle was initially a confectionary company. It manufactured Biscuits and

Chocolates. Parle’s Glucose Biscuits was a well-known brand. There was an

interesting story behind parle’s diversification into soft drinks. Mr. Jayanthilal

Chauhan, Father of the President Chief Mr. Ramesh Chauhan once came on a

business visit to Madras. In Madras, he saw an Artos Soft Drink in retial outlet and

enquired about it. He was surprised to know that it was local brand in South India.

He wondered how a small local brand belonging to south find a place in a

metropolitan city like Madras. He enquired about the manufacturer and learnt that

the plant was located at Ramachandrapuram of East Godavari District in Andhra

Pradesh. He came all the way from Madras to R.C.Puram and met Mr. Padmanabha

Raju, the owner of ARTOS. He learned everything about the soft drinks from him

but Mr. Raju refused to give him the formula to prepare the concentrate. Then Mr.

Chauhan came back to Bombay and turned his attention towards soft drink PARLE-

ORANGE in 1966, packed in 200 ml. Glass bottle. The drink lasted for over 10-12

years.

After Jayanthilal Chauhan, his two sons Mr. Ramesh Chauhan and Prakash

Chauhan took over his business. Ramesh Chauhan after his entry, developed the

present Franchise system, which was now under CCI, Ramesh Chauhan entered the

industry in 1968. Before the introduction of Thums Up there was another Cola

brand Parle PEPINO. But it could not stand against the image created by Coca-

49
Cola. People would not look to another cool drink except Coca-Cola even after its

exit. And more over, the package of pepino was also not good. So it failed.

CCI operates with the franchise system, there by defining the area of

operation for every franchise holder to whom it sells the concentrate. The

Franchisees buy the concentrate from CCI, Bombay and mix it with purified, sweet

end and processed water, then the carbonate and fill it in sterilized bottles and sell

them in the local market.

In India, there are 60 Franchise Units for CCI. In Andhra Pradesh there are

B.U.’s under CCI and 3 under Pepsi. The 7 Bottling Units in Andhra Pradesh

according to their order of establishment are :

1. Hyderabad.

2. Vijayawada

3. Visakhapatnam

4. Rajahmundry

(The Franchise under study, S.S.S.Ltd. B.U.. Vemagiri)

5. Secunderabad

6. Nellore

7. Khammam

(under the name of S.S.S.Ltd., B.U., Sathupalli)

50
The targets regarding sales, marketing inputs are fixed by CCI to his

franchise holder and are followed up throughout the year. The Marketing Program

is handed over to the respective holder at the beginning of the year.

The control of CCI over its franchise exists through quality control,

marketing program and production. It plans the promotional activities, which have

to be implemented by the franchise holders. It directly or indirectly controls each

and every aspect of their operations.

CCI’s products according to their year of Introduction to the market.

BRAND FLAVOUR YEAR OF ENTRY


Gold Spot Orange 1968
Kismat Pineapple 1968
Limca Lemon 1972
Bisleri Soda Soda 1974
Maaza Mango 1976
Thums Up Cola 1978
Maha Cola Cola 1991
Citra Clear Lemon 1991
Coca-Cola Cola 1993
Fanta Orange 1996
Sprite Clear Lime 1998
Table no:3.3

The Coca-Cola Company engages in manufacturing, distributing and

marketing non-alcoholic beverage concentrates and syrups worldwide. The

company also produces, markets, and distributes juices and juice drinks as well as

51
water products. It sells beverage concentrates and syrups to bottling and canning

operators, distributors, fountain wholesalers, and fountain retailers. The company’s

beverage products comprise bottled and canned soft drinks and beverages, as well as

concentrates, syrups and not-ready-to-drink powder products. In addition the Coca-

Cola company markets and distributes sports drinks, teas, coffees and other

beverage products. The company was organized in 1886 and is headquartered in

Atlanta, Georgia.

Southerners like their drinks sweet, and for Coca-Cola Bottling Co.

Consolidated (CCBCC), there’s nothing sweeter than a Coke. CCBCC produces

and distributes beverages, principally products of the Coca-Cola Company, mainly

in the Southeast. It is the 2 bottler of Coca-Cola in the US (behind Coca-Cola

Enterprises), serving an 11-state territory, which is home to about 18 million

prospective cola consumers. CCBCC also produces and markets other beverages,

including Dr. Pepper, Seagram drinks and Sundrop. Coca-Cola products ring up

approximately 90% of CCBCC’s Sales. Chairman and CEO Frank Harrison and his

family, together with director Reid Henson, control about 92% of CCBCC’s voting

stock.

Coke is it – “it” being the world’s top soft-drink company. The Coca-Cola

Company owns four of the top five soft-drink brands (Coca-Cola, Diet Coke, Fanta

and Sprite). Among its other brands are Barq’s, Fruitopia, Minute Maid, Powerade,

and Dasani Water. In North America, it sells Groupe Danone’s spring water brands

(Evian, Dannon and Sparklets).

52
Coca-Cola sells crush. Dr. Pepper and Schweppes outside Australia, Europe

and North America. The firm sells about 400 drink brands, including coffees,

juices, sports drinks and teas in about 200 nations. Although it does no bottling

itself, the company owns about 36% of Coca-Cola Enterprises, the Largest Coke

bottler in the world.

COCA – COLA WORLD WIDE

The Coca-Cola Company exists to benefit and refresh everyone it touches.

Founded in 1886, our company is the world’s leading manufacturer, marketer and

distributor of non-alcoholic beverages concentrates and syrups, used to produce

nearly 400 beverage brands. Our corporate headquarters are in Atlanta, with local

operations in over 200 countries around the world. For more than 115 years the

Coca-Cola Company and its bottlers have issued a phenomenal amount of colorful,

fanciful and beautiful advertising and promotional items that captured the cultural

spirit and artistic trends of their times.

TRADEMARKS

Our trademarks are our most valuable assets. The trademark “Coca-Cola”

was registered with the U.S. Patent and Trademark Office in 1893, followed by

“Coke” in 1945. The unique contour bottle, familiar to consumers everywhere, was

granted registration as a trademark by the U.S. Patent and Trademark Office in

1977, an honor awarded few other packages.

53
In 1982, the Coca-Cola Company introduced Diet Coke to U.S. Consumers,

marking the first extension of the Company’s most precious trademark to another

product. Later years saw the introduction of additional products bearing the Coca-

Cola name, which now encompasses a powerful line of cola products. Today, the

world’s favorite soft drink, Coca-Cola, is one of the world’s best and most admired

trademarks, recognized by more than 90 percent of the world’s population.

BIRTH OF A REFRESHING IDEA

John Stitch Pemberton first introduced the refreshing taste of Coca-Cola in

Atlanta, Georgia. It was May of 1886 when the pharmacist concocted a caramel-

colored syrup in a three-legged brass kettle in his backyard. He first “Distributed”

the new product by carrying Coca-Cola in a jug down the street to Jacobs’

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

fountain. Whether by design or accident, carbonated water was teamed with the

new syrup, producing a drink that was proclaimed “Delicious and Refreshing”. John

Pemberton’s partner and bookkeeper, Frank M.Robinson, suggested the name and

penned “Coca-Cola” in the unique flowing script that is famous worldwide today.

Mr. Robinson thought “the two C’s would look well in advertising”. In 1886, sales

of Coca-Cola averaged nine drinks per day.

That first year, Pemberton sold 25 gallons of syrup, shipped in bright red

wooden kegs. Red has been a distinctive color associated with the number one soft

drink brand ever since. For his efforts, Pemberton grossed $50 and spent $ 73.96 on

54
advertising. By 1891, Atlanta entrepreneur Asa G. Candler had acquired complete

ownership of the Coca-Cola business. Within four years, his merchandising flair

helped expand consumption of Coca-Cola to every state and territory. In 1919, the

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

Woodruff became President of the Coca-Cola Company in 1923, and his more than

six decades of leadership took the business to unrivaled heights of commercial

success, making Coca-Cola an institution the world over.

ADVERTISING

Advertising has played an important role in the success of our products since

our First Newspaper Ad in 1886, which read “Coca-Cola, Delicious! Refreshing!

Exhilarating! Invigorating!” The Company uses advertising to trigger desire as

often and in as many ways as possible. Throughout the years, slogans for Coca-Cola

have always been memorable. Here are some highlights :

2000 - “Coca-Cola Enjoy”

1993 - “Always Coca-Cola”

1990 - “Can’t Beat the Real Thing”

1989 - “Can’t Beat the Feeling”

1986 - “Red, White and You”

1982 - “Coke Is It”

1976 - “Coke Adds Life”

1971 - “I’d Like to Buy the World a Coke”

1969 - “It’s the Real Thing”

55
1963 - “Things Go Better with Coke”

1959 - “Be Really Refreshed”

1944 - “Global High Sign”

1942 - “It’s the Real Thing”

1936 - “It’s the Refreshing Thing To Do”

1929 - “The Pause That Refreshes”

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

Wythe, were the hallmark of early campaigns in premier magazines. Artist

Haddon Sundblom’s Portraits for holiday ads, which began in the 1930’s, helped

mould the national image of a red-suited Santa Claus. Fresh, Creative and Tasteful,

Advertising images for Coca-Cola have always set a high standard of quality for

other products around the world. The Company recognizes that Coca-Cola belongs

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

favorite soft drink. Our advertising reflects that special relationship between

consumers and the simple moments of pleasure they have come to associate with

Coca-Cola.

Coca-Cola is…..

 The Symbol of Quality

 Customer and Consumer Satisfaction

 A Responsible Citizen of the World

GLOBAL BUSINESS

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Entering the last quarter of the 20th century, the deep emotional bond

between Coca-Cola and its consumers grew even more powerful and more global.

In 1971, young people from around the world gathered on a hilltop in Italy to sing

“I’d Like to Buy the World a Coke”, a counterpoint to turbulent times. This was

also a glimpse into the Company’s future: an expanding global presence and an even

closer attachment to the world’s most cherished trademark.

The power and prestige of Coca-Cola were exemplified in 1988, when three

independent worldwide surveys conducted by Landor & Associates confirmed

Coca-Cola as the best-known, most-admired trademark in the world.

COCA-COLA IN INDIA

After a 16-years absence, Coca-Cola returned to India in 1993. The

Company’s presence in India was cemented in November that year in a deal that

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

network.

 Coca-Cola India has made significant investments to build and continually

improve its business in India, including new production facilities,

wastewater treatment plants, distribution systems and marketing

equipment.

 During the past decade, the Coca-Cola system has invested more than US $ 1

Billion in India

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 In 2003, Coca-Cola India pledged to invest a further US $ 100 Million in its

operations.

 Coca-Cola business system directly employs approximately 6,000 local

people in India.

 In India, we indirectly create employment for more than 125,000 people

in related industries through out vast procurement, supply and distribution

system.

 Virtually all the goods and services required to produce and market Coca-

Cola locally are made in India.

 The Coca-Cola system in India comprises 25 wholly-owned company

owned bottling operations and another 24 franchisee-owned bottling

operations.

 A network of 21 contract-packers also manufactures a range of products for

the Company.

 The complexity of the Indian market is reflected in the distribution fleet,

which includes “10-tonne trucks, open-bay three-wheelers that can navigate

the narrow alleyways of Indian cities, and trademarked tricycles and

pushcarts.”

PRODUCTS & QUALITY :

Leading Indian Brands Thums Up, Limca, Maaza, Citra and Gold Spot

join the Company’s international family of brands including Coca-Cola, Diet Coke,

Sprite and Fanta, plus the Schweppes product range.

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 Our Kinley Water Brand was launched in 2000.

 Annual per capital consumption of soft drinks in India is nine 8-ounce

servings.

 In early 2003, Coca-Cola India collected Advertiser of the Year and

Campaign of the Year awards for the Thanda Matlab Coca-Cola all-

media campaign.

 The Company ranking up “Firsts” in the introduction of Canned and PET

soft drinks, vending machines and backpack dispensers for crowds of

cricket supporters.

 The Coca-Cola system adheres not only to national laws on food

processing and labeling, but also to our own strict standards for exceptional

quality.

 In everything we do, from the selection of ingredients to the production of

our beverages and their delivery to the market place, we use our specialized

Quality Management System, The Coca-Cola Quality System, to ensure

that we are offering consumers only the highest quality products.

 We monitor our success through our customer and consumer feedback and

our in-trade monitoring programs, and this information enables us to

continuously improve our already demanding systems.

 While The Coca-Cola Company is a global company with some of the

world’s most widely recognized brands, the Coca-Cola business in India, as

in each country where we operate, is a local business. Our beverage.

59
SALES PROMOTION

Sales Promotion includes tools for consumer promotion (Samples, Coupons,

Cash Refund offers, Prices off, Premiums, Prizes, Patronage Rewards, Free Trails,

Warranties, Tie in promotion (Price off, advertising and display allowances, and free

goods), business and sales force promotion (trade shows and conventions, contests

for sales representatives and specialty advertising).

Sales Promotion tools are used by most organizations, including

manufacturing distributors, retailers, trade associations, and non profit organizations.

A decade ago, the advertising – to – sales – promotion ration was about 60:40.

Today in many consumer packaged-goods companies, sales promotion expenditures

have been increasing as a percentage of budget expenditure annually for the last two

decades.

Several factors contribute to the rapid growth of sales promotion, particularly

in consumer markets, Internal factors include the following : Promotion is now

more accepted by the top management as an effective sales goal: more product

managers are qualified to use sales – promotion tools: and are under greater pressure

to increase the current sales, External factors include the following: the number of

brands has increased: competitors use promotion frequently: many brands are seen

as similar: consumers are more price-oriented, the trade has demanded more deals

from manufactures: and advertising efficiency has declines because of rising costs,

media clutter and legal restraints.

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In general, large scale advertising campaign go with the soft drink industry.

Television advertising generally ports way an adventurous mood. Hoardings and

printer advertisements convey similar ideas.

MAJOR DECISION IN ADVERTISING

Marketing Management must make five important decision when developing

and advertising programs. Setting objectives : The first step in developing an

advertisement program is to set an advertising objective. These objectives should be

based on part decisions about the target market, positioning and marketing mix. The

market positioning and mix strategy defines the job that advertising must be doing in

the total marketing program.

Many communication and sales objectives can be set for advertising. Cooley

lists fifty possible advertising objectives in his well-known “Defining Advertising

goals for measured advertising results”. He outlines a method called DAGMAR

(after the books title) for turning advertising objectives into specific measurable

goals.

An Advertising objectives into specific communication that is to be

accomplished with specific target evidence during a specific period of time.

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Advertising objectives can be classified by purpose – whether their aim is to inform,

persuade or remind.

Information advertising is used heavily at the time of introducing a new

product category, when the objective is to build primary demand. Thus producers of

compact disk players first usually, inform their consumers about the sound and then

go to informing them benefits or a CD.

Some persuasive advertising has become comparison advertising which

compares on brand directly or indirectly with one or move other brands. For

example in its classic comparison campaign. Avis positioned itself against market

leading hertz by claiming, “We are number two, so we try harder”. Procter and

Gamble positioned scope against Listerine, claiming that mint – fresh scope “fights

has breathe and does not give medicine breath”, comparison advertising has also

been use for such products as soft drinks, computers, deodorants, toothpastes,

automobiles, wines and pain relievers.

Reminder advertising is important for native products it keeps consumers

thinking about the product extensive. Coca-Cola ads on television are designed to

remained people about Coca-Cola, not to inform or persuade them.

Setting the Advertising Budget

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After determining its advertising objective the company can next set its

advertising budget for each product. The role of advertising is to effect demand for

a product the company wants to spend the amount needed to achieve the sales goals.

Four commonly used methods for setting the advertising budget are discussed

below. Here we describe some specific factors that should be considered when

setting the advertising budget.

 Stages in the Product Life Cycle : Now products typically need large

advertising budgets to build awareness and to gain consumers trial, Matured

brands usually require lower budgets as a ratio to sales.

 MARKET SHARE : High market share brands usually need more

advertising. Building market or taking share from competitors requires large

advertising spending than simply maintaining current share.

 Competition and Culture: In a market with many competitors and high

advertising spending, a brand must advertise more heavily to be headed

above the noise in the market.

 Advertising Frequency : When many repetitions are needed to put across the

brands messages to consumers, the advertising budget must be larger.

 Product Differentiations : A brand which closely resembles other brands in

its product class Cigarettes, Beer, Soft Drinks requires heavy advertising to

get it apart. When the product differs greatly from competitors advertising

can be used to point out the difference to the consumers.

CREATING THE ADVERTISING MESSAGE

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A large advertising budget does not guarantee a successful advertising

campaign. Two advertising can spend the same amount on advertising and yet can

have different results. Studies have shown that creative advertising messages are

more important advertising success that amount spends on it.

MESSAGE GENERATION

The next after allocating ad-budget is message generation the message about

the product should be very clear and attractive which have an impression on the

consumers. The captions and punch lines of Coca-Cola are very attractive and have

an impact on the consumer psychology.

CHOOSING MEDIA

The media planner has to know the reach, frequency and impact of each

media to be utilized. The major types, in order of their advertising volume, are news

papers, televisions, direct mail, radio, magazines. To advertise its product apart

from hoardings in main junctions, signage, danglers in retail outlets the bottlers vans

are also painted with Coca-Cola logo and message of the product, which provides

(Opportunity to see) OTS to the consumers.

ADVERTISING SPECIALITIES

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Advertising specialties are useful articles imprinted with an advertiser’s

name given as gifts to the consumers. Typical items include pass, Calendars, Key

chains, T-Shirts, Caps and drinking glasses. U.S. Companies spend more than $ 4

Billion each year on advertising specialties. Such items can be very effective. In a

vacant study, 63% of all consumers surveyed were either carrying or wearing an

advertising specialty items.

THEORETICAL FRAMEWORK OF SALES


COMPARISION AND SALES PROMOTION

INTRODUCTION:

The sales comparison is one of the three major groupings of valuation

methods, called the three approaches to value, commonly used in real estate

appraisal. This approach compares a subject property's characteristics with those of

comparable properties which have recently sold in similar transactions. The process

uses one of several techniques to adjust the prices of the comparable transactions

according to the presence, absence, or degree of characteristics which influence

value. As such, all sales comparison approach methods are variations on hedonic-

type measurements, which determine the value of something as the sum of the value

of the various components which contribute utility.

Units of Comparison

The SCA relies on the assumption that a matrix of attributes or significant

features of a property drive its value. For examples, in the case of a single family

65
residence, such attributes might be floor area, views, distance to amenities, number

of bathrooms, lot size, age of the property and condition of property.

Economic Basis

The sales comparison approach is based upon the principles of supply and

demand, as well as upon the principle of substitution. Supply and demand indicates

value through typical market behavior of both buyers and sellers. Substitution

indicates that a purchaser would not purchase an improved property for any value

higher than it could be replaced for on a site with equivalent utility, assuming no

undue delays in construction

Sales promotion:

Sales promotion includes tools for consumer promotion(samples, coupons,

cash refund offers, price off, premiums prices patronage rewards, free trails,

warranties, Tie in promotion (price off, advertising and display allowances, and free

goods),business and sales forces promotion (trade shows and conventions, contests

for sales representatives and speciality advertising).

Sales promot6ion tools are used by most organizations, including

manufacturing distributors, retailers, trade associations, and non profit

organizations.A decade ago, the advertising- to-sales promotion ration was about

60:40. today in many consumer packaged-goods companies, sales promotion

expenditures have been increasing as a percentage of budget expenditure annually

66
for the last two decades. Several factors contribute to the rapid growth of sales

promotion, particularly in consumer markets.

Internal factors:

They include the following: promotion is now more accepted by the top

management as an effective sales goal: more product managers are qualified to use

sales- promotion tools: and are under greater pressure to increase the current sales.

External factors:

They include the following the number of brands has increased competitors

use promotion frequently many brands are seen as similar consumers are more price-

oriented, the trade has demanded more deals from manufactures and advertising

efficiency has declined because of rising costs, media clutter and legal restraints.

Sales promotion is another important component of the marketing

communication mix. It is essentially a direct and immediate inducement. It adds

extra value to the product and hence prompts the dealer/consumer to buy the

product.

The committee on definition of the American marketing association

defines sales promotion as follows.

‘In a specific sense, sales promotion includes those sales activities that

supplement both personal selling and advertising, and coordinate them and make

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them effective, such as displays, shows , demonstrations and other non-recurrent

selling efforts not in the ordinary routine.

Sales displays are the act of putting things for view or on view. In sales

management, sales display means “arranging systematically saleable goods so as to

attract the attention of the customer”. Advertising helps in awareness, reminding and

informing customers about products and services. The actual product is not

displayed in advertising. Sales displays fulfill that need by appealing to the eye of

the prospects. Through a sales display, the manufacturer shows the goods or services

to the customer. In the past sales display was the only media for exhibiting products

and inducing prospects to buy the same. Sales displays are actually advertising at the

point of purchase.

Definition of sales:

“Sales promotion consists of a diverse collection of incentive tools, mostly

short-term, designed to stimulate quicker /or greater purchase of a particular product

by consumers and traders

---.Kotler

“Sales promotion represents those marketing efforts that are supplementary

in nature which are conducted for a limited period of time and seek to induce

buying”.

…..Davis

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IMPORTANCE OF SALES PROMOTION:

In a competitive market, sales promotion, sales promotion comes handy to a

marketer, to solve of his short-term hurdles. Short term because, the impact of sales

promotion measures are not that durable and lasting like the results obtained through

advertising and personal selling. Sales promotion, by and large, is understood and

practiced as a catalyst, and a supporting facility to advertising and personal selling.

Objectives of sales display:

The following are the major objectives of any sales display

• It shows the products or services to the potential customer.

• It gives an idea about every detail of the product such as variety, quality,

size, colour, etc.

• It helps the customer to see and examine the goods before they actually buy

them.

• Sales display appeals visually to the prospects and induces them to purchase.

• Sales display reminds the customers about their need and subsequently they

are attracted to buy

• Wholesalers and retailers are satisfied by displays tactics undertaken by

manufacturers and they buy the goods.

TYPES OF SALES DISPLAYS:

There are three forms of display:

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I. Interior Display includes on the floor, walls, in show cases and show boxes.

Goods should be neatly arranged inside the retail outlet. In this type of display,

proper lighting and colour matching should also be ensured so that the overall

effect of interior display becomes pleasing and attractive.

II. Exterior display is the display of products in the show window of the retail

outlet. It creates that long lasting first impression. It also seeks attention of

passers-by as well as prospects and invites them to enter the establishment.

Window dressing is one example of exterior display.

III. Other displays like showrooms, show cases, glass boxes, cupboards, etc. from

part of display. They are used only for sales display but also as a publicity device

for enhancing sales. The success of showrooms and show cases depends, to a great

extent, on the location, decoration, lighting and such other devices.

There are various classes of sales display of which the following are important:

1. Product unit display : such unit displays use merchandise that is identical in

size, colour, shape, use, etc. this type of display is used for bags, readymade

garments, shirts, etc. efficient merchandising is of interest to both the dealer and the

manufacturer.

2. Life-style displays: using the market segmentation approach, life-style display

are used

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ORGANISING SALES PROMOTION CAMPAIGNS:

Though almost all companies resort to sales promotion techniques, only

some of them go about the job in planned way. Others mostly view sales promotion

as a weapon that can be taken out just like that and used in emergent situation. Sales

promotion yields the intended results only when it meets certain basic requirement.

The conditions for success of sales promotion are discussed below.

1. Identifying the requirements:

The first requirement is to identify the specific requirement of the firm in

resorting to sales promotion. Earlier in this chapter, we identified the broad contexts

in which sales promotion techniques can be employed. The find out its need-is it to

bring in substantial extra sales immediately is it to offload accumulated stock is it to

regain loosing consumer interest in the product is it to enlist some support for the

advertising effort that is already on.

2. Identifying the right promotion programme:

The next step is to identify the apt programme Earlier, we discussed the

different tools available for sales promotion. The firm has to select the programme

suitable to the current need and situation. Should it go in for product demonstration

or free samples of the product or should it go in for a large scale consumer contest.

The choice of the programme will be primarily decided by the resources available

with the firm.

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3. Enlisting the involvement of salesmen:

Often, sales promotion programme are conceived and planned at the head

office of the firm and implemented in a hurry without enlisting the cooperation and

involvement of the field sales people. For the campaigns to succeed, it is essential

that the salesmen be briefed on the context and content of the programme.

. They have also to be informed of their roles in the conduct of the

programme, given detailed information / working guides, and be told what they are

expected to do at different stages of the campaign.

4. Enlisting the support of the dealers (trade):

It is also essential to enlist the support of the dealers in any large-scale sales

promotion venture. Since a major part of the activity to take place around the

dealership, the campaign may flop if the dealer is not motivated to support it . the

pop materials and the product under campaign will get the required prominence only

the dealer so desires. While organizing consumer contests, most companies in

corporate dealer contests and dealer motivation programmes.

5. Enlisting the advertisement organizing sales promotion campaigns

Though almost all companies resort to sales promotion techniques, only

some of them go about the job in a planned way. Other mostly view sales

promotions a weapon that can be taken out just like that and used in an emergent

situation. sales promotion yields the intended results only when it meets certain

basic requirements. The conditions for success of sales promotion are discussed

below.

72
Identifying to the requirements:

The first requirement is to identify the specific requirement of the firm in

resorting to sales promotion. Earlier in this chapter, we identified the broad contexts

in which sales promotion techniques can be employed. The firm most find out its

need to bring in substantial extra sales immediately us it to offload accumulated

stock is it to regain loosing consumer interest in the product it is to enlist is it to

some support for the advertising effort that is already on.

Identifying the right promotion programme:

The next step is identify the at programme. Earlier, we discussed the

different tools available for sales promotion. The firm has to select the programme

suitable to the current need and situation. Should it go in for product demonstration

or free samples of the product or should it go in for a large –scale consumer contest

the choice of the programme will be primarily decided by the resources available

with the firm .a big consumer contest cannot be organized send implemented unless

the firm can command substantial resources and organizing capacity.

Enlisting the involvement of salesmen:

Often, sales promotion programmes are conceived and planned at the head

office of the firm and implemented in a hurry without enlisting the cooperation and

involvement of the field sales people. For the campaigns to succeed, it is essential

that the sales men be briefed on the context and content of the programmed agencies

Support

73
The advertisement agency’s support is also essential for the successful

working of a sales promotion venture. Since a major part of the activity has to take

place around the dealer shop, the campaign may flop if the dealer is not motivated to

support it. The POP materials and the product under campaign will get the required

prominence only if the dealer so desires.

Enlisting the advertisement agency’s support:

The advertisement agency’s support is also essential for the successful

working of a sales promotion campaign. Carrying out a sales promotion campaign is

as challenging as conducting an advertising campaign. In fact, for an advertisement

campaign, quite often the results are readily available to be measured.

Maintaining the tempo:

Sometimes the sales promotion campaigns are lunched with great publicity

and fanfare. But subsequently the tempo of the programme is allowed to view out. It

is essential that the initial tempo built around the programme be maintained.

Coordination with other elements of promotion:

Sales promotion programmes yield the best results when they are well

coordinated with the other elements of promotion- advertising, personal selling and

publicity. Sales promotion programme cannot be run totally independent of theses

major promotion variable. When used in combination with them, sales promotion

stands a better chance of meeting its aims.

Choosing a push or a pull strategy of sales promotion:

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• Push strategy:

A sales promotion programme , aimed primarily at is called push strategy .

the marketer will promote to his products heavily among distributors, wholesalers

and retailers. At the lost stage, the retailer promotes them among consumers. A push

strategy usually involves a lot of personal selling and sales promotion including

contests for sales people and display at trade shows.

• Pull strategy:

With a pull strategy, promotion is directed at the ultimate consumers. The

objective is to motivate them to ask retailers for the products. Strategy relies heavily

on advertising and various forms of sales promotion such as samples free gifts etc.

FACTORS INFLUENCING SALES PROMOTION:

• Target market

• Nature of product and services

• Stage of the product life cycle

• Budget available for promotion.

Tools of sales promotion:

• Prize scheme:

Prize scheme are an important method of sales promotion. A prize

scheme is designed for both retailers/ customer and the dealears to make the

75
scheme effective, it should be advertised through packages or retailers. The

latest method of advertising is through the press, posters, etc. For dealers, sales

competitions are arranged, prizes are announced or special offers are made if

they show a substantial progress in sales.

•Correspondence :

This could be an effective device for sales promotion a specialized

correspondence section will be more advantages as it can communicates very

effective with prospects as well as potential customer and established for it is

better equipped to write letters.

• Catalogues:

These play dominant role both advertising and sales promotion campaigns.

They are largely used when a manufactures different types of products,

distinguishable by size, shape and others features. It is from the catalogue files that

one can get information required about different products of a particular

manufacturer. The following purposes can be served by catalogues.

• To get orders

• To make the customers aware about the specification

• To provide detailed information

• To solicit products sales

• Advertising Novelties:

Small, Interesting, or personally useful items, etc. can be used for sales

promotion. To be effective, an advertising novelty should meet the following

requirements.

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• Origination of display contests among retailers

• Publicity through newsletters mentioning retailer’s name.

• Provision of display good and fixtures at special subsidiaries prices.

• Photo-flashing of retailers display to bother retailers.

• Cooperative advertising and sales promotion, i.e., promoting the retail store

as well as the manufacturers product on cost-sharing basis.

SALE PROMOTION OBJECTIVES:

Sales promotions are increasingly being used to accomplish an ever-

expanding list of marketing objectives. The company’s marketing objectives and

strategies influence the development of sales promotion objectives and strategies.

There can be a number of sales promotion objectives, depending upon the firms

policies, marketing objectives, nature of the product and its stage in product life

cycle, level of existing and anticipated competitive activity, consumer response

pattern economic conditions and the target group(consumers, traders, or sales force)

etc.

Sales promotion objectives could be either proactive or reactive are

• To gain additional market share or additional revenue

• To expand the target market

• To develop favorable consumer experience with the product

• To add extra value to the product and develop brand franchise

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• Reactive sales promotion objectives are developed in response to some un

favorable market situation, or where the objectives are essential short term,

such as the following.

• In response to competitive moves

• When excessive inventory piles up

• To generate short term cash

• When the decision is to discontinue a product, or close down the business.

In a dynamic and rapidly changing marketing environment, unfavorable

conditions may appear with little or not no warning. It is difficult for the

management to anticipate and plan for such exigencies: however, hasty decisions

regarding sales promotion objectives may sometimes produce adverse effects for the

long-run.

An important area that concerns sales promotion objectives is directly related to

the specific promotional techniques to be used. The techniques could be those where

the measurement of result is straight forward, or difficult to measure. For example, it

is easy to measure the impact of discount offer on sales, but it is very difficult to

measure the impact of premium on the perceived value of the promoted brand.

The company can use sales promotion to achieve many objectives: however,

every offer must start by being specific as to what objectives are intended to

78
achieve. According to Schultz and Robinson in sales Promotion Management

(Chicago: Crain Book, p.149 1982.), the objectives should be:

i. specific

ii. Measurable

iii. clear and concise

iv. practical and realistic

v. affordable, and

vi. attainable.

Perhaps, the most difficult part in managing sales promotion is to decided which

particular sales promotion tools should be used for achiving the specific objectives,

which of these tools can be and should combined to produce a synergistic effect, and

can these be delivered to the target audience, that is or the sales force.

Some of the important sales promotion objectives are mentioned below, and

the more important ones have been discussed briefly.

 Increase sales volume

 Speed up the sales slow moving products

 To check the fluctuation in sales

 Attract new customers

 Launch new product and increase trail

 Encourage repeat purchase

 Clearance of excessive inventories

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 Motivate dealers

 Encourage dealers to participate in display and sales contests

 To gain advantageous shelf-space and increase store traffic

 Improve relationship with dealers

 To block competitors move

 Motivate sales force

 To supplement advertising and personal selling efforts and customers

attention from price.

SALES PROMOTION SYSTEM AT SRI SARVARAYA SUGARS Pvt. Ltd.,

BOTTLING UNIT:

The parent company HCCBPL Mumbai has divided India as per

geographical boarders with specific areas allotment and named them as franchise

area. If brief, HCCBPL will control boot marketing as well as quality control

activity.

Marketing channels are the most complicated phenomena encountered in the

study of Marketing. They encompass elaborate behavioral systems that usually

involve many decisions. Markets often extend over a wide geographical area.

East Godavari has been divided into 36 depots of Coca-Cola soft drinks. In

each area, the company has identified certain high volume outlets selling their soft

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drinks in Theatres, Pan Shops, Hotels, Restaurants, Departmental Stores,

Sweet Shops etc.,

Each area has been divided into different routes and each route is appointed

with a sales man and a driver. Each salesman sells the given quantity of soft drinks

everyday with the help of two loaders. Each of the area is under the control of an in

order to promote sales and smoothen the distribution. All the supervisors are

responsible to the sales manager for their performance.

The marketing territory of the company has 3 districts. In these districts 70

wholesalers have been appointed to distorting “Coke” uninterruptedly in the market.

But distribution of bottled soft drinks is not an easy task. It needs proper planning,

resources and controlling.

Packing of product is of utmost importance in the sale of soft drinks. So, the

need for “Extensive” distribution of product, with as many retail outlets as possible,

is the key to become a market and grab more share of the market.

Secondly, the other type of distribution is “Intensive” and as the very world

signifies certain typical outlets are totally purchased for maintaining only brand ie.,

Coke without any competition. This is mostly followed in theatres, parlors, Bus

complexes, Restaurants wherever it is possible as a monopoly countries for which an

additional margin is allowed by the company to the outlet through the dealer as

81
compensation. The need for effective physical distribution is more so important in

bottled soft drinks because every minute in the business counts.

In other words, if a day lost for lack of stock means loss of more than two

days business. Sale of soft drinks is something unique and the demand changes

depending on seasonally and temperatures.

Hence the need to maintain a systematic operational system is more

important in soft drinks business. A well-trained and experienced sales person

should visit the retail outlets everyday. This kind of continuous report with retailers

and feed back to the unit is greatly helpful of emptied bottles in time.

AGENCY ACTIVITY:

Agency Activity comprises the effectiveness of whole sale dealer in terms of

his personal relation with retailers, effective distribution at the areas allotted

maintaining sufficient funds to organize the agency, his relation with the field staff,

capability in giving the market information and counter activity against competitors.

Periodical reviews are made by the field staff to evaluate the agency activity

and recommendations are made depending on the necessity to develop the agency.

To motivate the agency towards sales and various types of incentive other than

regular, commission are offered as detailed below.

1. Quarterly commission on achieving the target.

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2. Additional commission for possessing mechanized distribution input.

3. Incentive on achieving the inputs target.

4. Subsidy on ark confession of mechanized vehicles.

5. Dealers of the district award to create complexity spirit among the agency.

1. BRANDS DEALING IN THE OUTLET

Company Brands
Coca Cola 5.95
Pepsi 4.50
Table no: 5.1

BRANDS DEALING IN THE OUTLET

7
5.95
6
5 4.5
BRANDS

4
3
2
1
0
COKE PEPSI
COMPANY

Chart no: 5.1

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Interpretation:

The above table and graph shows that Out of 100 respondents, outlets which

I surveyed in the Amalapuram Division Market 5.95 Brands of Coca – Cola and 4.5

Brand of Pepsi are found in the retail outlets out of 7 brands. Finally majority of

respondents are strongly agreed with above statement.

2. Do you have Supply In Time?

No of

Sc no Choice Respondenis Percentage

1 Yes 75 75%

2 No 25 25%

Total 100% 100%


Table no:5.2

Number of respondents
No
25%

Yes
75%

Chart no: 5.2

Interpretation:

84
The Above Table and Graph Shows that out of 100 Respondents, 75

Respondents Are strongly Agree in With the Above Statement 25 Respondents are

agree With the no, Finally Majority of Respondents Are Strangely Agree With

Above Statement.

3. Promotional Activates Offered By Which Company is Good ?

No of

Respondent

Sc no Choice s Percentage

1 Coco-Cola 55 55%

2 Pepsi 45 45%

Total 100 100%


Table no:5.3

Pepsi
45%
Coco-
Cola
55%

Chart no:5.3

85
Interpretation:

The Above Table and Graph Shows that out of 100 Respondents, 55

Respondents Are strongly Agree in With the coca-cola, 25 Respondents are agree

With the Pepsi, Finally Majority of Respondents Are Strangely Agree With Coca-

cola.

4. Top brands consumed by the outlet For the Coca -Cola?

No of

Sc no Choice Respondents Percentage

1 Maaza 45 45%

2 Sprite 42 42%

3 Kinly 13 13%

Total 100 100%


Table no:5.4

50%
40%
Percentage

30%
20% 45% 42%

10%
13%
0%
Maaza Sprite Kinly
Choice

Chart no: 5.4

Interpretation:

86
The above Table And Graph Shows That Out Of 100 Respondents, 45

respondents Are strongly Agreeing With The Maaza , 42 Respondents Are Agree

with The Sprite And 13 Respondents Are Agree With The Kinly Finally Majority Of

Respondents Are Strongly Agree With Above Statement.

5. Top brands consumed by the out let for Pepsi?

No of

sc no Choice Respondents percentage

1 Slice 42 42%

2 7Up 47 47%

3 Aquafine 11 11%

Total 100 100%


Table no: 5.5

50% 47%
42%
40%
30%
20%
11%
10%
0%
Slice 7Up Aquafine

Chart no: 5.5

Interpretation:

87
The above table and graph shows that out of 100 Respondents,47

respondents are strongly agreeing with the 7Up,42 respondents are agreeing with the

Slice ,11 respondents are agree with the Aquafine. Finally majority of respondents

are strongly agreed with above statement.

6. TOTAL DAILY SALES OF AN OUTLET

Table No 5.6

Company Sales

in

Crates
Coca Cola 2.45

1.03

3
2.45
SALES IN CRATES

2.5

1.5
1.03
1

0.5

0
Coke Pepsi
COMPANY

Pepsi
Chart no:5.6

Interpretation :

88
The above table and graph shows that Out of 100 respondents, which I

surveyed in the Amalapuram Market Division there are 2.45 crates of Coca Cola

and 1.03 crates of Pepsi drinks are averagely consumed. Finally majority of

respondents are agree with above statement.

7. Which company gives you the maximum benefits in the customer?

No of

S. no Choice Respondents percentage

1 coca-cola 37 37%

2 Pepsi 32 32%

3 both 31 31%

Total 100 100%


Table no:5.7

percentage

both
coca-cola
31%
37%

Pepsi
32%

89
Chart no:5.7

Interpretation:

The above table and graph shows that out of 100 respondents, 37

Respondents are strongly agreeing with the coca-cola,32 Respondents are agree with

the Both. Finally majority of respondents are strongly agree with above statement.

8. Fast moving brands in the outlet?

Company No of Percentage

respondents %
coca-cola 69 69%
Pepsi 31 31%
Total 100 100%

Table no:5.8

80%
Percentage %

60%

40%
69%
20% 31%
0%
coca-cola Pepsi
Company

Chart no:5.8

Interpretation:

90
The above table and graph shows that out of 100 Respondents,69

respondents are strongly agreeing with the Coca-cola,31 Respondents are agreeing

with the Pepsi. Finally majority of the respondents are strongly agree with above

statement.

9. Which reasons to sale in coca-cola?

No of

Respondent

S. no Reasons s percentage

1 Brand image 21 21%

2 Quality 26 19%

3 Quantity 19 26%

4 All 34 34%

Total 100 100%


Table no: 5.9

Reasons for sale

Brand
image
All 21%
34%

Quality
19%
Quantity
26%

91
Chart no:5.9

Interpretation:

The above table and graph shows that of 100 Respondents,34 Respondents

are strongly agreeing with the All ,26 respondents are agreeing with the Quantity, 21

respondents are agreeing with the Brand image and 19 respondents are Agree with

the quality. Finally majority of respondents are strongly agree with above statement

10. After sale services provide by the company?

No of

S. no Reasons Respondents percentage

1 Good 35 35%

2 Bad 19 19%

3 average 46 46%

Total 100 100%


Table no: 5.10

G ood
average 35%
46%

B ad
19%

Chart no: 5.10

92
Interpretation:

The above table and graph shows that out of 100 Respondents, 46

respondents are strongly agreeing with the Average, 35 respondents are agreeing

with the Good and 19 Respondents are agree with the Bad. Finally majority of

respondents are strongly agree with above statement.

11.what is the main source of information regarding the soft drinks?

No of

Respondent

S. no Reasons s percentage

1 TV 38 38%
2 Radio 8 8%

3 News paper 29 29%

4 Promotional program's 25 25%

Total 100 100%


Table no:5.11
Promotion
al
program's
25%
TV
38%

News
Radio
paper
8%
29%

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Chart no:5.11

Interpretation:

The above table and graph shows that out of 100 respondents,38 respondents

are strongly agree with the TV, 29 respondents are agreeing with the News paper,25

Respondents are agreeing with the promotional program’s and 8 Respondents are

agree with the Radio. Finally majority of respondents are strongly agree with above

statement.

12.Whether the advertisement of the company help to promoted the sales?

No of

S. no Reasons Respondents percentage

1 Yes 89 89%

2 No 11 11%

total 100 100%

Table no:5.12

No
11%

Yes
89%

Chart no: 5.12

Interpretation:

94
The above table and graph shows that out of 100 respondents, 89

Respondents are strongly agreeing with the Yes and 11 Respondents are agreeing

with the No. Finally majority of respondents are strongly agree with above

statement.

13.Duration of sales supervisor visit your shop?

S. no Reasons No of Respondents percentage

1 weekly 45 45%

2 15 days f 38 38%

3 month 17 17%

Total 100 100%


Table no:5.13

month
17%
weekly
45%

15 days f
38%

Chart no:5.13

Interpretation:

95
The above table and graph shows that out of 100 Respondents,45

Respondents are strongly agreeing with the Weekly,38 Respondents are agreeing

with the 15 days in a month and 17 Respondents are agree with the Month. Finally

majority of respondents are strongly agreed with above statement.

14.Trade schemes offered by which company are good?

S. no Reasons No of Respondents percentage

1 coca-cola 31 31%

2 pepsi 28 28%

3 Both 41 41%

Total 100 100%


Table no:5.14

coca-cola
Both 31%
41%

pepsi
28%

Chart no:5.14

96
Interpretation:

The above table and graph shows that out of 100 Respondents,41

Respondents are strongly agreeing with the Both of the products, 31 respondents are

agreeing with the Coca-cola and 28 respondents are agree with the Pepsi. Finally

majority of respondents are strongly agreed with above statement.

15.Are you satisfy with the present distribution system?

S. no Reasons No of Respondents percentage

1 Yes 83 83%

2 No 17 17%

Total 100 100%


Table no:5.15

90%
80%
70%
60%
50%
40% Yes, 83%
30%
20%
10% No, 17%
0%
Yes No

Chart no:5.15

Interpretation:

97
The above table and graph shows that out of 100 Respondents, 83

Respondents are strongly agreeing with the Yes,17 Respondents are agree with the

NO. Finally majority of respondents are strongly agree with above statement.

16.Are they charging the same price for the same dealers?

S. no Reasons No of Respondents percentage

1 Yes 67 63%

2 No 33 33%

Total 100 100%


Table no:5.16

No
34%

Yes
66%

Chart no:5.16

98
Interpretation:

The above table and graph shows that out of 100 Respondents,66

Respondents are strongly agreeing with the Yes and 34 Respondents are agreeing

with the NO. Finally majority of respondents are strongly agree with above

statement.

17.Do you face any market problem regarding Coca-cola company?

S. no Reasons No of Respondents percentage

1 Yes 42 42%

2 No 58 58%

Total 100 100%


Table no:5.17

Yes
42%
No
58%

99
Chart no:5.17

Interpretation:

The above table and graph shows that out of 100 respondents, 58

respondents are strongly agreeing with the No and 42 Respondents are agreeing with

the Yes. Finally majority of respondents are strongly agree with above statement.

18. After sales providing the service?

S. no Reasons No of Respondents percentage

1 very good 15 15%

2 Good 24 24%

3 satisfactory 61 61%
Total 100 100%
Table no:5.18

very good
15%

satisfacto Good
ry 24%
61%

Chart no:5.18

100
Interpretation:

The above table and graph and shows that out of 100 Respondents,61

Respondents are strongly agreeing with the Satisfactory,24 Respondents are

agreeing with the Good and 15 respondents are agree with the very good. Finally

majority of respondents are strongly agree with above statement.

FINDINGS FROM THE STUDY

AMONG 100 RETAILERS RESPONDS:

 Most of the retailers complained that promotional schemes were being

communicated to them in the last minute of time.

 Most of the retailers complained about non-availability or some flavors.

 Service to Rural Areas most of the distributors are servicing enough to rural

market demand and the schemes are not communicating properly in rural

areas.

 Most of the respondents are satisfies with the sales promotion of Coca Cola

Company.

 Consumers are rating the Coca Cola as better choice and they are giving

more priority to these products rather than the competitive products.

 The performance of the company Representative is not satisfactory mode in

solving the Retailers problem and delay in work.

 The company is not providing more point of purchase material including

Visi Coolers, banners, glow sign boards etc.,

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 Customers said Pepsi Company is giving offers, Coca-Cola company is not

giving offers.

SUGGESTIONS FOR THE STUDY

 Company Top Management should insist that the distribution work should be

assigned who covers a fixed number of retail outlets daily to each sales man.

 The Company Management should reduce the number of retail outlets what a

single sales person covers during a day. At present this figure is 250, this

should be reduced to around 200 in order to make the sales person to spend

more time with the retailers.

 Distributors may be invited for meeting and given some trainings regarding

marketing of Coke products and to maintain better relationships with

management or customer.

 The company may also reconsider their Sales Promotion Activities to future

increase Retailers Satisfaction.

 The company may expedite the taking of orders and ensure on-time delivery.

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 During Peak Season for soft drinks, the distributors are not meeting the

demand of retailers due to non-availability of stock. So company should try

to provide the sufficient stock in peak seasons.

 Most of the retailers complained about non-availability or some flavors.

Retailers are feelings this would reduce their outlets image. So, company

should send all flavors to every distributor.

 Most of the retailers complained that promotional schemes were being

communicated to them in the last minute of time.

 Company management should bring pressure on distributors to maintain

stock to their carrying capacity. So that it matches with the expected demand

in peak season.

103
CONCLUSION FOR THE STUDY

Here the respondent presents the conclusion for the research made. The goal

of this research was to study the Sales Comaprision and Sales Promotion systems

and practices on today’s organizational Promotional strategies endeavor; Sales

Comparison has been a key element of the modern marketing in recent years. All

around the world companies in different sizes have been trying to utilize On the

other hand because of vigorous competition not only acquiring new customers is

becoming difficult but also holding existing customers is a quite challenging task

During our research we learned that it is a lot cheaper to keep existing

customer in level that constantly encourage them to stay with a company is a

dynamic and meticulous job. That is why computerized Sales comparison system

can play a critical role in success of a company. But the way that Sales Comaprision

systems are used can make substantial different on the out come. Along with sales

and marketing. A new emerging approach that recently has been attracting

corporations is customer value management. Their goal is to identify value that can

be delivered to the customer along with their products through their supportive

processes and services.

104
For a successful relationship it is up to the company to perform customer’s

profitability analysis. As a result this analysis, if a customer is not doing well with

presented products or services, there is an opportunity for us to find a better solution

for that customer before loosing it to competitors.

One of the other important facts I learned in this research was; a fundamental

principle of Sales Promotional activities are that all customers are not same. Another

words, it is not possible to attract and retain all customers with the same policy and

treatment. And also I found that SRI SARVARAYA SUGARS has been providing

proper promotional strategies in order to retain them for a long period.

Another important issue of my research was SRI SARVARAYA SUGARS

was giving freedom for customer to check the products quality of what they want.

And also I found that there was a delay in loading process and also compliant

resolution process was taking much time.

105
SRI SARVARAYA SUGARS LIMITED

BOTTLING UNIT – VEMAGIRI

QUESTIONAIRE FOR THE COMPARISION OF SALES AND SALES

PROMOTIONAL STRATEGIES

1.Personal details

i. NAME OF THE PERSON:

ii. AGE:

iii. AGENCY NAME (OR) SHOPE NAME:

iv. PLACE:

v. CODE:

vi. MANDAL:

2. Brands dealing in the out-let.

a) Coca-Cola b) Pepsi c) Artos d) All .

3. Do you have supply in time?

a) Yes b) No

4. Promotional activities offered by which company is good?.

106
a) Coca-Cola b) Pepsi.

5. Top brands consumed by the outlet for the coca-cola?

a) Maaza b) Sprite c) Kinly

6. Top brands consumed by the outlet for pepsi ?

a) Slice b) 7up c) Aquafine

7. Total daily sales of an outlet in crates.

a) Coca-Cola b) Pepsi.

8. Which company gives you the maximum benefits in the customer?

a) Coca-Cola b) Pepsi. c) Both.

9. Fast moving brand in the outlet.

a) Coca-Cola b) Pepsi.

10. Which reason to sale in Coca-cola?

a) Brand image b) Quality c) Quantity d) All.

11. After sale services provide by the company.

a) Good b) Bad c) Average.

12. What is the main source of information regarding the soft drinks?

a) TV b) Radio c) News paper d) Promotional program’s

13. Whether the advertisement of the company help to promoted the sales.

a) Yes b) No

14. Duration of sales supervisor visit your shop?

a) Weekly b) 15days in a month c) Monthly.

15. Trade schemes offered by which company is good?

a) Coca-Cola b) Pepsi. c) Both.

16. Are you satisfy with the present distribution system?

107
a) Yes b) No

17. Are they charging the same price for the same dealers?

a)yes b) no

18. Do you face any market problems regarding Coca-Cola Company?

a)yes b) no

19.After sales providing the service?

a)very good b)good c)satisfactory

20. Any suggestions for improving the system in Coca-Cola Company?

Signature of the Dealer or Customer

Thank You Sir for your immediate response

108
BIBLIOGRAPHY

Text Books

 Marketing Management : V.S.Ramaswamy, S.namakumari

 Marketing Management : Philip Kotler

 Sales and Distribution : Dr.S.L Gupthn

 Marketing, theory and practices : Adrian Palmer

 Fundamentals of Marketing : Stanton W.J.

 Fundamentals of Selling : Charles M Futrell

 Marketing Research : G.C. Beri

 Research Methodology : C.R. Kothari

Web Sites:

 www.coca-cola.com

 www.wikipedia.com

 www.scribd.com

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