A Report On Analysis Of Horizontal Expansion Strategy Of Coke in Cuttack by Brindavan Mohanty MBA,Regional College of Management(Autonomous) Regd

no-0906247115

Under the guidance of Internal GuideShri Subash Ch. Nath Asst. Professor, Marketing RCM(Autonomous) External GuideShri Deepak Samal SeniorTeamLeader(Marketing) Coca Cola (Cuttack Zone)

Regional College of Management(Autonomous) Bhubaneswar

Decl

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I hereby that I have worked on the topic ³ l i i Coke i Cuttack´ from 10th April 2010 to 15th June 2010.

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All the information that has been collected, analyzed and documented for the project is authentic possession to me. I would like to categorically mention that the work here has neither been purchased nor acquired by any other unfair means. The data and information existing in this report are accurate and update to the current data, to the best of our knowledge. However, for this purpose of the project, information already compiled in many sources has been utilized. All information in this report is true representation of what I have experienced during the project.

Brindavan Mohanty

Acknowledgement
Co-operation and building up of moral are the essence of success. These are two factors that go a long way in achieving it. It is a Herculean task, which lacks these two determinants of success. Summer training was an exposure to corporate environment. It was an opportunity and great pleasure for me to be in such an environment and having interaction with concerned people. I express my heartily respect and profound thanks to Mr. Partha Chakraborty(A.S.M.) and Mr. Deepak Samal (S.E.) for their enlightening and meticulous guidance for the consummation and evaluating of this project. Prof. Subash Nath , Faculty, Regional College Of Management (Autonomous), Bhubaneshwar, who was in the role of my Faculty Guide, left no stone unturned in guiding me along the course of my Summer Training Project work. I am grateful to them those given me this opportunity to work on such type of project, without their, it is not possible for me to complete the project. Finally, to my parents, for all the tea and care with which they overwhelmed me through these long months of creation. I sincerely hope that my first venue in this field is appreciated. Offering thanks.

Brindavan Mohanty

TABLE OF CONTENTS

1. Chapter 1
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Introduction about the topic Introduction about the company

2. Chapter 2- Research Methodology
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Purpose of the study Objective of the study Scope Data collection Sampling methods Limitations

3. Chapter 3- Data analysis and representation 4. Chapter 4- Findings 5. Chapter 5- Recommendations and suggestions. 6. Chapter 6- Conclusion 7. Chapter 7- Bibliography 8. Chapter8 - Appendix

CHAPTER-1

Introduction about the topic And Introduction about the company

Introduction of the Topic

What is Hori ontal E pansion?
Expansion of business capacity through the absorption of facilities or buildings as well as through the acquisition of new equipment to handle an increased volume in sales in which the business is already engaged.

In microeconomics and strategic management, the term Horizontal Expansion describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets.

Horizontal Expansion in marketing is much more common than Vertical Expansion is in production. Horizontal Expansion occurs when a firm is being taken over by, or merged with, another firm which is in the same industry and in the same stage of production as the merged firm,

For e.g. Pepsi has adopted strategy of Vertical Expansion by which Pepsi wants to improve it¶s sale from Coke monopoly outlets, means Coke¶s monopoly outlets are being taken over by Pepsi now in this condition to improve its sale Coke need to open new outlets which is called Horizontal Expansion Strategy. A monopoly created through Horizontal Expansion is called a Horizontal Monopoly. This is the expansion of a firm within an industry in which it is already active for the purpose of increasing its share of the market for a particular product or service.

Reason of Hori ontal E pansion

The ultimate objective of coke is to acquire more customers and serve them properly. While doing Horizontal Expansion take care to the competitor¶s strategy. The main competitor is PEPSI, who has opted Vertical Expansion to generate more sell however Coke do not believe on Vertical Expansion because Vertical Expansion has limited preview so COKE is great believer in Horizontal Expansion and this strategy helped to the company to maintain its leadership in the soft drink industry.

India is a big country having diversified taste and appearance and same character is reflected in their demography. Horizontal Expansion helps the company to serve the more people and more customers touch point because in the waste country many customers commute.

Benefits of hori ontal expansion :
‡ Provides Incremental Volume & Revenue for Business. ‡ By horizontal expansion there will be more outlets of our product In the market which will sell our product in more quantity. This will generate incremental revenue for the business. ‡ Helps Improve Route Productivity ‡ There are pre determined routes through which product is transported and delivered at the coke outlets. If we open more outlets on the routes it will increase the productivity because more outlets will be covered and more products will be delivered with a negligible increase in time and efforts. Hence it will improve productivity of the route ‡ Improves Profitability of Our Distributors Expenses on routes and delivery of product are incurred by the distributers. Opening new outlets will give more revenue to our distributors also. With the increase in route productivity will improve profitability of the distributors. ‡ Reduced Dependence on Large Customers, We know that coke products have a very good demand. To comply with this we have to provide large amount of supply. In case we have few outlets a large amount of stock is gathered at few retailers. In this case they become monopolistic and demand many things like coolers refrigerators discounts margins etc. from the company. So it is very necessary to reduce dependence on large retailers by opening new outlets. ‡ Increase market visibility selling at more outlets give more market visibility of the product which gives higher product recognition and brand value to the products. ‡ Economies of scale ‡ Economies of scope ‡ Increase in market power over supplier and downstream market channels.

Advantage of horizontal expansion over vertical expansion:
Bot expansion techni es are meant for increasing sales vol mes. But in hori ontal

expansion company can earn more profits by spending less. et s see the profit story of hori ontal expansion

Above tables clearly indicate the importance of opening new outlets. By doing vertical expansion only growth in profit was not very effective but because of opening just 200 new outlets sales increased to a large extent. Total profit margin and return on investment also increased.

How to Do Hori ontal Expansion
To do Horizontal Expansion more efficiently I made a profit story and talk to the shopkeepers according to that story.

Story
Salesperson ± hello sir, I am from Coke and I have a proposal that will surely increase your income. May I present you? Shopkeeper ± yes please present it Salesperson - Sir if you will start to sell coke then your overall sale will be increased and it is not tough to sell coke because Coke is the leader in beverage industry and a very well known brand. Shopkeeper- yes, but how it can increase my overall sale? Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products have a very good combination with cold drink. If a person wants to purchase any of these products then it is quite possible that he will purchase Coke and vice versa. Shopkeeper ± But how Coke can increase my profit? Salesperson ± Sir if you are really interested to explore through Coke, you may be able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 6oo ml and 1 case of 2 liter. And for start selling Coke you need to invest only Rs. 420. We will provide you 3 empty carets Weight of Product Rate (ML) (Rs.) 200 168 300 214 600 488 2000 455 of case QTY 24 24 24 9 M.R.P. (Rs.) 8 10 22 55 Revenue (Rs.) 192 240 528 495 Profit (Rs.) 24 26 40 40

Sir your daily profit from coke (in Peak season) Profit per month (in Peak season) Profit of whole season

= Rs. 154 = Rs. 4620 = Rs. 13860

(Because the peak season for Coke is only of 3 months)

Profit of rest of the 9 months

= Rs. 20790

(Because as per the Coke assumption income in the off season is decreased by half in comparison to the Peak season) Profit of whole year Your investment Your ROI = Rs.34650 = Rs. 1913 = 34650 * 100/1913 = 1811.29% Shopkeeper ± But I do not think this much will work what about those stuffs that needs to support trading of Coke and I have to provide them like electricity, ice etc. Salesperson ± Sir that¶s a really nice question, we can understand your anxiety and we have to offer much more for this. We have minimum Rs. 10 offer on 200 and 300 ml and Minimum Rs. 20 on Pet bottles. More over if you are keeping your refrigerator for the storage purpose of Coke if will be all right as the refrigerator can work by consuming power as low as 2 units per day which will cost you Rs. 8 per day. So, what you have to say about our offer? Shopkeeper ± Yes, I think it will be a nice idea to accept your offer. Salesperson ± Thank you sir and Congratulation (Shaking Hands) I will be dropping my products within 10 minutes as I have the carrying vehicle with me and within next 15 minutes you are all set to go for selling Coke. On some shops we set refrigerators and to keep a refrigerator we need to collect 1 photo copy of Voter ID card or Rashen Card, 1 photo copy of electricity bill and 1 passport size photo of shopkeeper.

Introduction of the Company

FEW WORDS ABOUT THE COMPANY

Every person who drinks a Coca-Cola enjoys a moment of refreshment and shares an experience that millions of others have served. All of those individual experiences combined have created a worldwide phenomenon ± a truly global brand.

On the distribution front, 10-tonne trucks, open-bay three wheelers that can navigate the narrow alleyways of Indian cities, ensure availability of our brands in every nook and corner of the country.

The company-owned Bottling arm of the Indian Operations, Hindustan Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and distribution of beverages across the country. A career at Hindustan Coca-Cola Beverages Pvt. Ltd. is truly a one-of-a-kind experience. Come taste life at Coca-Cola.

HISTORY

Coca-Cola Company, nourishing the global community with the world¶s largest selling soft drink since 1886, returned to India in 1993 after a gap of 16 years giving a new thumbs-up to the Indian Soft Drink Market. In the same year, the Company took over ownership of the nation's top soft-drink brands and bottling network. No wonder, our brands have assumed an iconic status in the minds of the consumers. Coca-Cola serves in India some of the most recalled brands across the world including names such as Coca -Cola, Diet Coke, Sprite, Fanta, Thums Up, Limca, Maaza and Kinley (packaged drinking water), Minute Maid Pulpy Orange.

Bottlers

In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or produce) syrup concentrate which is then sold to various bottlers throughout pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.

Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories. The company operates a franchised distribution system dating back to 1889 where TCCC only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory.

The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P 500.

PRODUCTS AND BRANDS

1. COKE
Coke is considered to be a cola drink. It is generally preferred by all sections of consumer. This is a cash cow brand for the company in terms of sales revenue. The world¶s favorite drinks, the world¶s most valuable brands, The most recognizable word across the world after Coke, Coca-cola has truly remarkable heritage from a humble beginning in 1886 .It is now the flagship brand of the largest manufacturer marketers and distributors to non-alcoholic beverages in the world.

In India Coca-Cola was the leading soft-drink till 1977. When Govt. policies necessitated its departure, Coca-Cola made its return the country in 1993 and made significant investment to ensure that the beverage is available to more and more people even in the remote and inaccessible part of the nation.

2. THUMS-UP
Thums-up is also considered to be a cola drink. It is hard in comparison to coke. It is preferred by all section of consumers but especially to teen-agers. It is a big source of company to cash its publicity. Strong Cola taste exciting personality.

Thums up is a leading carbonate soft drink and most trusted brand in India originally introduced in 1977, Thum-up was acquired by the Coca-Cola company in 1993 .Thums-up is known for its strong fizzy taste and its confident mature and uniquely masculine attitude. This brand clearly seeks to separate the men from boys.

3. LIMCA
Limca is considered to be lemony in taste, and comes under the category of cloudy lemon because of its color, which is similar to that of clouds. It has to yield good sales revenue. It is generally preferred by Children & Women. ³Limca is Lemoni Limca´

Lime µn¶ Lemoni, the Drink that can cast a tangy refreshing spell on anyone anywhere .Born in 1971 .Limca has been the original thirst choice of millions of consumer for over 3 decades. The brands has been dispelling healthy volume growth on year and Limca continues to be the among the leading flavor soft drink in the country the success formula. the sharp fizz and Lemoni bite combined with the single minded positing of the brands as the ultimate refresher has continue strengthen the brands franchise. Limca energizes refreshes and transform divine into the zingy refreshment of Limca and walk away a new person.

4. FANTA
FANTA ORANGE, It is orange flavor & preferred by Children & Women. Internally Fanta the ³orange´ drink of the Coca-Cola Company is seen as one of the favorite drinks since 1940¶s Fanta entered the Indian market in the year 1993.

Over the year Fanta has occupied a strong market place and is identified as ³the fun catalyst´ perceived as a fun youth brands, Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feeling but also help free sprite thus encouraging one to indulge in the moment. This positive imagery is associating with happy, ³Cheerful and special times with friends´.

5. MAAZA
MAAZA MANGO, in Maaza cold drink no gas only based on juice. It is a non-aerated soft drink. It is preferred mostly Children & Women. MAAZA was launched in 1976 .There was a drink that offered the same real taste of fruit juices and was available through the year In 1993, MAAZA was acquired by Coca-Cola India MAAZA currently dominates the fruits drinks category.

Over the year brand MAAZA has become synonymous with mango.This has been the result of such successful campaigns like, Taaza Mango, Maaza Mango And Botal Mein Aam, Maaza Hain Naam. Consumer regards MAAZA as wholesome, natural fun drinks which delivers the real experience of fruit.

6. KINLEY SODA
This is a soda drink. It has no color and no flavor. It is generally used with alcohol and used by adults.

7. KINLEY WATER
³Boond Boond Mein Vishwas´ Water a thirst quencher that refreshes, a life giving force that washes all the toxins away. Ritual purifier that cleanses, purifies, transforms, water the most basic need of life the very sustenance of life, a celebration of life itself.

The importance of water can never be understated particularly in a nation such a India when water Governs the lives of the million, be it part of everyday ritual or as the monsoon which gives life to the sub-continent. KIN KIN Y water understands the important and value of this life giving force. Y Water thus promises water that is as pure as it meant to be water you can trust to

be truly safe and pure.

8. SPRITE
Sprite is a good product at cola and contains at lemon flavor. Worldwide SPRITE is ranked as the No-5 soft Drink and is sold in more than 190 countries. In India SPRITE was launched in year 1999 and today it has grow to be one of the fastest growing soft drinks , leading the clear lime category.

Today SPRITE is perceived as a youth icon. Why with a strong appeal to the youth SPRITE has stood for a straight forward and honest attitude .It is clear crisp refreshing taste encourage influence them to be true to who they are and to obey their thirst

9. MINUTE MAID
In Minute maid pulpy orange cold drink no gas only based on orange juice. It is a nonaerated soft drink and market competitor of Tropicana Twister.

10. GEORGIA COFFEE
During the journey of the company towards its vision, leading the beverage revolution in India now even garam matlab coca-cola a hot new launched from coca-cola in India.

Georgia quality tea and coffee served from state of the art vending machines is positioned to tap into the nation¶s biggest beverage category. Georgia Gold is delicious tastingof fresh coffee, currently available exclusively at McDonald¶s outlets across the country Georgia Gold has driven the sales through the roof. The success from hot beverage from Georgia Gold has resulted in extension into the cold category with the introduction of ice tea and cold coffee.

CONSUMER CHOICE AT A GLANCE

Coca-Cola

Mainly preferred by the Youngster & Kids.

Thums-Up

Youngster.

Limca

Common Drink.

Fanta Basically Preferred by Ladies and Kids.

Maaza

Also Ladies and Kids.

Sprite

Not clearly defined.

Kinley Soda

Mostly those who consume liquor.

Georgia

Premium class people.

Minute Maid Pulpy

Common Juice

CHAPTER-2

RESEARCH METHODOLOGY

Purpose of the study:

1. Consumption of soft drinks has increased tremendously in India. Every age of group like it, now a days it become a household necessary item. 2. In field of marketing many kind of surveys are conducted by coca-cola team time to time. 3. This is end and last feedback for any kind of organization. By the specific survey, which was conducted by coca-cola organization want to know about the right picture of Cuttack market. This work study provides extensive information about the position of company¶s brand in Cuttack. 4. To find out the present status of Coca-Cola brands in the retail outlets.

Objectives of the study: Primary Objective:

1. To understand & explain the Horizontal Expansion Concept with respect to HCCB operations at retail end. 2. To enlist the benefits of Horizontal Expansion for the company at retail end. 3. To enlist the roles and responsibilities for Horizontal Expansion at retail end.

Secondary Objectives:

1. To identify if there exists any training requirement for the improvement of sales to its sales team 2. To understand how to make The Horizontal Expansion Process more effective 3. To study the distribution system of the company. 4. To study the behavior of sales man and distributer towards shopkeeper. 5. To develop the business, expand the market coverage, acquisition of retailers, retention strategies and maintaining customer relations.

Scope of the study:
This study has been done at Cuttack region in Orissa only. During the study I went through different aspects. The study would be only a drop in the ocean that can help to understand the current status of activation elements of Coca-Cola in retail outlet. The study can be conduct on the national basis also with large sample size & sufficient time by taking feedback of many retailers which sell Coke products. There are some important aspects of this study which are as follow²

1. This project work is helpful in making a deeper analysis of the horizontal expansion strategy of Coca-Cola in Cuttack. 2. This project work will be helpful in conducting higher studies regarding the overall satisfaction of Coca-Cola from the dealer¶s perspective. 3. This report work will help the company to devise further marketing & sales strategies. 4. During my project I came to know about Pepsi-Co Marketing strategy that is the biggest competitor of Coca-Cola. 5. During my project I came to know about coke market share in twin cities.

DATA COLLECTION

This research involved a study, which was descriptive as well as explorative in nature it basically aims at gathering data about how the coca-cola red element concept &scheme playing in the mind of retailer & consumers. During the research period I collected data direct from retailers by survey. For proceeding further first of all we should know something about data and what the different type data are-

TYPES OF DATA: 1. Primary data. 2. Secondary data.

There are two types of data-

METHODS OF DATA COLLECTIONPrimary data collection: 1. Observation 2. Experiment 3. Survey But here, only surveys method of data collection is preferred which is very suitable to reach the researcher motto. Primary data can be collected by three methods-

A. Research instrument: Printed Questionnaire was used as the research instrument to collect the required information.

B. Area of surveys: The survey was conducted at Cuttack.

SAMPLE DESIGN

Sampling unit: The retailer of Grocery shop, general store, betel shop, and medical store was selected from different places of Cuttack.

Sampling size: 150 Outlets. Type of sampling: there are two type of sampling. A. Probability sampling. B. Non probability sampling. Probability sampling- It is also known simple random sampling. In this sampling everybody gets similar chance to select as a sample unit.

Non probability sampling- In this sampling everybody gets not similar chance to select as a sample unit. Example of non probability are cluster sampling, convenience sampling, judgment sampling e t c.

Sampling procedure: Simple random sampling procedure was followed.

Sampling method: Data were collected by retailer survey. The retailers are directly contacted and interviewed at their retail counter.

LIMITATIONS OF THE RESEARCH WORK
Considering the fact that ³Nothing is perfect in the world, every individual is bound to make mistake at some points, and it is genuine´.
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The study was restricted to Cuttack region only. Limited knowledge of the researcher in the field of research may lead to interpretation errors.

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The respondents may be biased or influenced by other factor. A busy schedule of dealers/ retailers also makes the collection of information a very difficult one.

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The project is purely based on observation & verbal meetings and may be influenced by unprecedented factors.

y y

Non-co-operative behavior of respondent was a big problem in this survey. . The research was based on primary collection of data through voice interview and observation so there may be chances of human error.

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The research was depending on the information provided by the respondents (retailers). It may insufficient.

As associated with project, time and money were the major limitations with this project.

CHAPTER-3

DATA ANALYSIS AND INTERPRETATION

1.TYPE OF CHANNEL
CHANNEL E&D GROCERY CONVINIENCE OTHERS RESPONSE 60 30 60 0 % 40 20 40 0

60 50 40

Response
30

%
20 10 0

60
E&D Grocery Convenience Others

INTERPRETATIONThrough the above diagram we can know that out of 150 outlets how many outlets are convenience, grocery and E&D outlets.Thus we can conclude that 40% outlets were E& D, 20% were grocery,40% were convenience.

2. TYPE OF OUTLET
OUTLETS PEPSI OUTLETS COKE OUTLETS NEVER SELL COLD DRINKS BOTH PEPSI AND COKE RESPONSE 30 30 30 60 PERCENTAGE 20 20 20 40

INTERPRETATIONThrough the above diagram we can know that out of 150 outlets,30 outlets sell pepsi,30 outlets sell coke,30 outlets don¶t sell cold drinks at all and 40 outlets sell both

3.CHILLING EQUIPMENT USED
CHILLING EQUIPMENTS USED RESPONSES PERCENTAGE

COKE FRIDGE PEPSI FRIDGE

30 30

20 20

OWN FRIDGE ICE BOX BOTH COKE AND PEPSI FRIDGE

15 21 54

10 14 36

INTERPRETATIONThrough the above diagram we can know that out of 150 outlets,30 outlets have cocacola refrigerators,30 have pepsi refrigerators,15 use there own refrigerator,21 use ice box and 54 use both pepsi as well as coca cola refrigerators.

4.LEVEL OF SATISFACTION ON COMMUNICATION FROM THE COMPANY
Level of satisfaction Responses Percentage

Highly satisfied Quite satisfied Neither satisfied nor dissatisfied Quite dissatisfied Highly dissatisfied

18

12 38 1 2 8

12

INTERPRETATIONThrough the above diagram we can know the level of satisfaction on communication from the company. Out of 150 outlets,18 are highly satisfied,57 are quite satisfied,24 are neither satisfied nor dissatisfied,39 are quite dissatisfied and 12 are highly dissatisfied

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39

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24

 

7

5.WHAT IS DONE IF A BRAND WHICH PREFERRED IS NOT DELIVERED PROPERLY
OUTCOMES RESPONSES PERCENTAGE

GO FOR OTHER BRAND CALL TO DISTRIBUTER CALL TO COMPANYS SALES PERSON STOP SELLING THAT BRAND OTHER OUTCOMES

96 0 39 15 0

64 0 26 10 0

INTERPRETATIONThrough the above diagram we can know what the retailers do if a brand they prefer is not delivered to them. Out of 150 outlets, 96 of them go for other brands, 39 of them call to the company`s sales person and 15 of them stop selling that brand.

6.PROMOTIONS THAT AFFECT THE BRAND MOSTLY
PROMOTIONS RESPONSES PERCENTAGE

SCHEME CASE REFUND PRICE PACK UNDER CROWN SCHEME ANY OTHERS

63 21 12 54 0

42 14 8 36 0

INTERPRETATION:Through the above diagram we can know the promotion that affect brand mostly. Out of 150 respondents 63 replied schemes,21 case refund,12 price pack and 54 undercrown scheme.

7. EFFECT OF MEGA EVENTS (EG. IPL) ON SALE OF COKE (IN PEAK SEASON, LIKE SUMMER)
EFFECT INCREASE DECREASE NO EFFECT CANT SAY RESPONSE 21 18 66 45 PERCENTAGE 14 12 44 30

INTERPRETATIONThrough the above diagram we can know the effect on sales in the occasions of mega events(In peak seasons). Out of 150 responses 21 said that the sales increase,18 said that the sales decrease,66 said that there is no effect on sales on mega events and 45 did not answer.

8. EFFECT OF MEGA EVENTS (EG. IPL) ON SALE OF COKE (IN NON PEAK SEASON)
EFFECT INCREASE DECREASE NO EFFECT CANT SAY RESPONSE 42 15 69 24 PERCENTAGE 28 10 46 16

INTERPRETATIONThrough the above diagram we can know the effect on sales in the occasions of mega events(In non peak seasons). Out of 150 respondents 42said that the sales increase,15 said that the sales decrease,69 said that there is no effect on sales on mega events and 24 did not answer.

CHAPTER-4

FINDINGS

1.It is felt that outlet owner are more concern about schemes like offers on cases, under crown schemes etc and Pepsi is providing them better schemes than Coke.

2. It is felt that distributor is not doing his work honestly, he is not sending route in the market properly. When the salespersons generate orders with retailer, due to problem like salesman is on leave, vehicle is not available etc they delay the order and retailer cancel the order with the distributer that affects the sales volume. 3. Distributer is more concern about Wholesaler rather than Retailer. 4. As per policy, both companies are not entitled to collect competitor empty bottles from the shops but Pepsi is not adhering to it. Therefore this hampering the business of cocacola in the market as Pepsi is more preferable to carry on the business in a suave manner.

5. The distributor in its area is facilitating sales by establishing monopoly of offers and schemes that do not reach to the outlet. 6. Due to infiltration, difference in the rates for the shopkeepers has been perceived as a major problem in the market. 7. Distributor rarely keeps any interest to work and communicate with the customer which results in of the company¶s sales as well as image are getting adversely affected.

8. It has been found that the shopkeepers has strongly responded to the option of switching to the another brand (Pepsi) when it has been inquired that what will they do in order to continue trading at the time when their preferred brand is not been delivered properly

9. The shopkeepers have nodded to the view that schemes offered to them as per the policies of the company plays a significant role in increasing profitability. As per the notes taken apart from the data in the questionnaire it has been discovered that PEPSI offers more schemes to the shopkeepers who are vindictive for the company. 10.. Some outlets are maintaining old price strips and also these are not easily visible to the customer. 11. I found that some retailer were not satisfied with our service, for that reason they stopped to sell our product and started to sell Pepsi product.

12. I found that Pepsi is doing aggressive advertisement in comparison with Coke, and investing aggressively on activation like hording, glow sign board, DPS, also in terms of providing good service and free chilling equipment to the retailer.

CHAPTER-5

RECOMMENDATIONS AND SUGGESTIONS

y

Company should convince retailers to have promotional tools decorating with coke products and should tell them why these elements are important and how company as well as Retailers is getting benefit of using these activation elements. Company should focus more and more on E&D Outlet because most of the E&D outlets don¶t have promotional tools of the company and overall average score of these outlets is very less. Company should reframe the Flange to an attractive and big size because the current look and size of Flange is not attractive and fail to draw attention of the population. Overall service should be improved because many of the retailers are not satisfied with company service. Company must provide free chilling equipment to the outlet where needed and also company should work out on the complain of Retailers. The Company should measure Retailers satisfaction regularly and should maintain proper communication with them. Company can increase the sales when it considering more on retailers, their suggestions or complaints about service or product so that necessary action can be taken. Review meeting should be often held so that the working pattern of the executives can be checked and improved if needed. Company representatives should visit retailers and should make a long-term relationship with retailer so that they can push the product. Distributers should be convinced to pass the incentives to the retailers so that they are motivated to promote this brand. Increase the number of dealers and retailers as this will help in making high sales volume. Now company should launch new taste of soft drinks like recently launched Minute Maid & also launched new product in another flavor. In winter Season Company should give more discount & schemes to retailers so that they sell more our product.

y

y

y

y

y

y

y

y y

y

y

y

CHAPTER-6

CONCLUSION

Coca - Cola beverage Pvt. Ltd. is world¶s largest beverage company and as we know that the coca-cola company is on that stage because of its large number of products and by giving the customer complete satisfaction regarding taste and quality. Now a day it¶s necessary to show customer and to make believe them that our product is better than others in the aspects which can be done in a better way through merchandising the products. As far as journey with the company is concerned, I grasped lots of knowledge within two months. Beca Because many of the company officials has assisted and given me the valuable notes and experience of their life. The primary objective of the my research is to analyze the horizontal expansion strategy of Coke and at the end of the research I found that there is requirement of changing the strategy for acquiring new customer for Coke but company should take care of its existing customer because they are the main instrument of promotion for any company so old customer should be fully satisfied with the company.

CHAPTER-7

BIBILIOGRAPHY

I have used following resources to prepare this study report to make it more accurate and confidential-

Serial no

Source of information

Name

Designation

Organization¶s/writer¶s name

www.cocacola.com 1. Websites www.cocacolaindia.com www.google.com

2.

Guidance personalities

Mr. Subash Nath

Faculty of marketing management

RCMA

3.

Books

Marketing Research Marketing Management

C.C.Berry Philip Kotler

CHAPTER-8

APPENDIX

Appendix- A (sample questionnaire)
I am Brindavan Mohanty a student of Regional College of management(autonomous) undertaking a summer project on the topic ³Analysis of Horizontal Expansion Strategy of Coke´. I would like to see your views and opinions on the same. Could you kindly spend a few minutes helping me complete this questionnaire? (1) What Type of Channel do you hold? e) E & D f) Grocery g) Convenience h) Other, Please specify ________________________________________________ (2) What Type of outlet are you in? e) Pepsi Exclusive f) Coke Exclusive g) Never sell cold drinks h) Both a & b (3) What is the chilling equipment you are using? f) Coca cola Fridge g) Pepsi Fridge h) Own your Assert Fridge i) Ice Box j) Both (A & B). (4) Kindly rate the level of satisfaction on Communication from the company f) Highly satisfied g) Quite satisfied h) Neither satisfied nor dissatisfied i) Quite dissatisfied j) Highly dissatisfied

(5) If a brand which you prefer is not delivered to you properly, then what do you do? f) Go for other brand g) Call to distributer h) Call to company¶s sales person i) Stop selling that brand j) Other actions, please specify __________________________________________. (6) Which of the following promotions affect the sale mostly? f) Scheme g) Case refund h) Price pack i) Under Crown Scheme j) Any Other, Please Specify __________________________ __________________. (7) I. Is there any effect of mega events (eg. IPL) on sale of COKE (In peak season, like Summer)? e) Increase f) Decrease g) No effect h) Can¶t say

(8) Is there any effect of mega events on sale of COKE (In non-peak season)? a) Increase b) Decrease c) No effect d) Can¶t say

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