FUNDAMENTALS

OF MARKETING
STUDY OF MARKETING ENVIRONMENT

RAJAT AGARWAL
COCA-COLA
MAHINDRA FINANCE
MARKETING ENVIRONMENT
The Marketing Environment is that environment in which
Internal factors (customers, employees, retailers, distributors,
shareholders, etc.) and External factors (technological,
political, economic, legal, social) surround business and
influence there marketing operations. Generally micro factors
are controllable while macro factors are uncontrollable.

“A company’s marketing environment consists of the actors

and forces outside of marketing that affect marketing
management ability to build and maintain successful
relationships with target customers”. – Philip Kotler
 ABOUT COCA-COLA
• Coca-Cola is the brand which was formed in 1886 by john
pemberton a pharmacist and a civil war soldier.

• In India Coca- Cola was launched in 1956 then relaunched

in 1993 after liberalization.

• Largest bottling partner of Coca-Cola in India is

Hindustan Coca-Cola Beverages Pvt Ltd (HCCBPL) which
cover approximately 65% of bottling operations in India.

• Coca-Cola India Pvt. Ltd. Leads governance systems of

operations of all partners in distributors, suppliers, and
bottling, other stakeholders.

• In India they have 57 factories across the country.

• They employees over 25000 people directly and indirectly

they are providing employment to around 2 lakh people.

• Coca-Cola in India has already invested $2 billion

till 2011. The company will be investing another $5
billion till the year 2020 in India.
 PRODUCTS
HCCBPL’s (Hindustan Coca-Cola Beverages Pvt. Ltd.) Product
Portfolio has an extensive range to choose from:
Sparkling Beverages- Coca-Cola, Diet Coke, Sprite, Fanta,
Limca, Thums Up, Schweppes Tonic Water, Kinley Soda.

most
sold
product

Still Beverages-Maaza, Minute Maid Pulpy Orange, Minute

Maid Nimbu Fresh, Minute Maid range of fruit flavoured
drinks, Minute Maid 100% Juices (Apple, Orange, Grapes,
Mixed Fruit)

Water- Bonaqua, Kinley

Micro factors of Coca-Cola
CUSTOMERS
It was found that 85% of the population in the world is aware
of the brand Coca-Cola. This shows how company has
maintained their excellent customer retention.
Coca-Cola customers vary in all age segments. From kids to
youngsters, youngsters to elders, elders to older they have been
able to capture the attention from decades.
SUPPLIERS
Suppliers are key people in every organization so is with Coca-
Cola. Suppliers provide raw material and resources that is
required by the company in production. They focus on
maintaining good and ethical relation with them.
They have both direct and indirect suppliers:
Direct supplier
• Ingredient
• Primary packaging
• Secondary packaging
Indirect supplier
• Logistics
• Sales & Marketing
• Utilities

COMPETITORS
There has always been a competition in beverage industry.
Competitors affect areas like quality, promotions, and most
importantly the price.
Some major competitors of Coca-Cola are: -

• PepsiCo.
• Parle
• Red Bull.

MARKETING INTERMEDIARIES
Intermediaries is also an important part of
microenvironment. As they help in making the product
available to the end customers. They include distributors,
wholesalers and retailers. They follow direct selling and
indirect selling both.
In direct selling they send their products directly in
shops. While, in indirect selling they send good to
distributing agencies and then they cover the whole
market.
Macro factors to Coca-Cola
ECONOMIC FACTORS
Economic factor of a country creates a major impact on the
company. Coca-Cola is not an exception, if the country is
affected by deflation and company does not reduces its price its
sales will go down as there will be less purchasing power with
customers. Meanwhile their competitors can grab the
opportunity by reducing prices.
POLITICAL FACTORS
These factors effect majorly the international trades that is
imports and exports. While Coca-Cola performs their major
operations in the local market.
Coca-Cola also manufactures environment friendly
products. From the caps till the labels on bottle are all
recyclable.
Depreciation in currency doesn’t play a major role as they
are not that much involved in import and export. they have
their plant in almost every state of India.
TECHNOLOGY FACTORS
Technology factor in beverage came up as a very beneficial
factor. With the help of technology, no new methods of
filling the bottles and their storage.
With the help of technology Coca-Cola has also reduced the
usage of plastic in its bottles and are making recyclable plastic
products.
ENVIRONMENTAL FACTOR
Environment play a vital role in the demand for Coca- Cola
products there refreshing drink are generally demanded
during the summer season and in winters their demand fall.
Therefore, Coca-Cola mainly does aggressive marketing during
the summer season to beat their competitors.
Beverage industry makes approximately 40% of their total
sale in April – June months because of summer season.

DEMOGRAPHIC FACTOR
Demographic factors like age also has a huge impact on Coca-
Cola. There beverages contain high amount of sugar and they
are not that healthy. That is why they have to obey some laws
and regulations due to which they don’t target children in
their advertisement.
Neither do they show their advertisement on children TV
channels.
 MAHINDRA FINANCE
Introduction
• Vice Chairman & President of Mahindra Financial
Service Sector is Ramesh Iyer.
• Mahindra & Mahindra Financial Services Limited is
a Rural based BFSI headquartered in Mumbai,
India.
• It has its place amongst the top tractor financer in India
and also offers a wide range of financial products to
address varied customer requirements.
• In 1993 they commenced financing Mahindra &
Mahindra vehicles and later they began financing Non-
Mahindra & Mahindra vehicles in 2002.
• They got into the business of financing commercial
vehicles and construction equipment in 2009.
• Mahindra finance have over 33,000 employees.
• They serve customers in more than 3, 60,000 villages–
that’s one in every two villages in the country

There subsidiary companies are: -

• Mahindra Insurance Brokers Limited.
• Mahindra Rural Housing Finance.
• Mahindra Asset Management Company.
 PRODUCT PORTFOLIO
VEHICLE FINANCING
• Auto and utility vehicles
• Tractors
• Cars
• Commercial vehicles and construction equipment
• Pre-owned vehicles and others
SME FINANCING
• Project finance
• Equipment finance
• Working capital finance
• Institutional lending
PERSONAL LOANS
• Wedding
• Children’s education
• Medical treatment
• Working capital
HOUSING FINANCE
• New house
• House renovation and improvements
• Mahindra Rural Housing Finance Limited (MRHFL)
MAHINDRA ASSET MANAGEMENT COMPANY
PRIVATE LIMITED (MAMCPL)
• Fixed deposits
• Mutual fund distribution
MICRO FACTORS OF MAHINDRA
FINANCE
CUSTOMERS
They create a great experience for customer by catering them in
0a timely and effective manner and delivering industry-leading
value. They started from around 200 customer and now have
over 6 million customers majorly from semi-urban and rural
sector of the country.
SHAREHOLDERS
Investor of a company are always part of its
microenvironment. As an investor’s decision effect, the
working directly. Mahindra finance has been able to keep
their investors happy by creating significant value for
shareholders through consistent growth and profitability.
there Y-O-Y growth in PAT was 45% and their EPS was
25.33 that is 33% Y-O-Y growth.
COMPETITORS
Competitors are those who are providing similar kind of service
to the customers. There are several competitors of Mahindra
providing similar services of financing. What makes Mahindra
finance different from his competitors is the reach they have in
the rural sector of the country where every company does not
want to go. Change in policy of a competitor can make a direct
effect on the organization that’s why they are in
microenvironment. Competitors are also those who motivate us
in giving our best and in increasing are services. Top five
players are covering 78% of market share including Mahindra
finance.
Some major competitors of Mahindra finance are: -
HDFC bank
ICICI bank
Bajaj Finance
TATA CAPTIAL

EMPLOYEES
Employees are always key people for an organisation. With
Mahindra finance having approximately 22000 employees they
promote a performance driven culture and increase in the
competency level in the employees. To their employees they
provide facility of personal loans. Mahindra finance have also
given stock options to their employees under which they have
given several equity stocks to them with 100% voting power in
decision making.

NUMBER OF EMPLOYEES
Macro factors to Mahindra
Finance
DEMOGRAPHIC FACTOR
In BFSI demographic factor plays a very important role as the
trends economic trend such as rapid urbanization, the rising
demand and need of the individuals, employment to young
people. All these things play a major role in development of
BFSI sector as more and more people will get employed there
purchasing power will increase and they will start buying
superior goods by taking finance from BFSI. Also, with
urbanization and young people getting to work will create a
demand for mobility and will give boost to automobile sector.
Mahindra finance has his major earning from automobile
sector.
GOVERNMENT POLICIES
Policies made by the government have a huge impact on BFSI.
A cut in repo-rate by RBI gives a boost to such sectors as they
start giving finance at a lower rate of interest and people get
attracted towards it. In recent the policies made by the current
finance minister Nirmala Sitharaman to boost the automobile
sector and give funding to NBFC will also play a very important
role in the growth of Mahindra finance as now more people will
buy new vehicles and they will get it financed by BFSI which
will lead in their growth.
TECHNOLOGY
The use of technology is enabling NBFCs to customise
and optimise their credit assessment models and
improve business processes for improving customer
experience. Besides, certain NBFCs are also investing in
data analytics and artificial intelligence to build robust
relationships with their target customer segments. the
efficient use of technology helps in keeping business
costs and overheads to a minimal level, enabling the
availability of credit at highly competitive rates. With the
global level usage of mobile phone technology everything
has become just a click away to did Mahindra finance did
by their mobile app.

ECONOMIC
Economic factor has a lot to do with the NBFC/BFSI sector as
the GDP, recession/boom, income/expenditure pattern of
consumers directly affect the need of these institutions by the
public.