Professional Documents
Culture Documents
SIP Report
SIP Report
Chapter Page
Topic
no.
CERTIFICATE I
DECLERATION Ii
ACKNOWLEDGEMENT Iii
EXECUTIVE SUMMARY Iv
1 INTRODUCTION 2
2 RESEARCH METHODOLOGY 5
3 INDUSTRY PROFILE 8
4 COMPANY PROFILE 12
7 RESEARCH FINDINGS 81
9 CONCLUSION 86
10 REFERENCES 88
11 ANNEXURE 88
CHAPTER 1
INTRODUCTION
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Soft drinks are non-alcoholic water-based flavored drinks that are optionally
sweetened, acidulated and carbonated. Some carbonated soft drinks also contain caffeine;
mainly the brown-colored cola drinks.
Globally, carbonated soft drinks are third most consumed beverages. Per capita
annual consumption of carbonated soft drinks is nearly four times the per capita consumption
of fruit beverages (Source: Data from the Beverage marketing Corporation, as reported by the
Canadian Soft drink Association). Soft drink consumption is growing by around 5% a year,
according to the publication Global Soft drinks, published by the Zenith International. Total
volume reached 412,000 million liters, giving a global per capita consumption of around 67.5
liters per year.
Major Players-Global
The global soft drink industry is highly concentrated, being largely controlled by the
two multinational companies; Coca Cola and PepsiCo. Coca Cola leads the carbonated soft
drink market in most countries in the world with 60% of the global cola market with its
flagship Coca-Cola brand. Other notable players include Cadbury Schweppes.
Indian Scenario
Market
According to government estimates soft drinks marketed in India were 6540 million
bottles in March 2001. The market growth rate, which was around 2-3% in ‘80s, increased to
5-6% in the early ‘90s and is presently 7-8% per annum. Most of the sales of soft drinks take
place during summers while just 5-6% of total sales take place in winters. In summers the
high season lasts for 70-75 days, which contributes more than 50% of the total yearly sales.
In terms of regional distribution cola drinks have main markets in metro cities and northern
states of UP, Punjab, Haryana etc. Orange flavored drinks and sodas are popular in southern
states. Western markets have preference towards mango-flavored drinks.
Non-alcoholic beverage market can be divided into fruit drinks and soft drinks. Soft drinks
available in glass bottles, aluminum cans, PET bottles or disposable containers can be divided
into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks
and non-carbonated drinks include mango drinks. Soft drinks can also be divided into cola
products and non-cola products. Cola products in Indian include brands like Coca- Cola, Diet
Coke, Thumps Up Pepsi Cola, Diet Pepsi, etc. Cola drinks account for nearly 61-62% of the
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total soft drinks market in India. Non-Cola products account for 36% the total soft drink
market (Source: India Infoline Sector Report).
Major Players in India
The two global majors PepsiCo and Coca-Cola dominate the soft drink market in
India. Coca-Cola, which had winded up its India operations during the introduction of the
FERA regime, re-entered India 16 years later in 1993. Coca-Cola bought local brands-
Thumps Up, Limca and Gold Spot from Parle Beverages and soft drink brands Crush, Canada
Dry and Sport Cola from Cadbury Schweppes in early 1999. Pepsi started a couple of years
before Coca Cola, in 1991 has bought over Mumbai based Duke’s range of soft drink brands.
There are conflicting figures about their market share. Some estimates put the market share of
PepsiCo to be higher and some put the market share of Coca Cola to be higher. However, the
soft drinks segment, dominated by these two companies, accounted for Rs 6,247 crore in
sales.
Activity Chart
DATE ACTION PLAN
16-17th May Orientation, Training and knowledge about Coca-Cola India
18-19th May Market visit, Whole sell market Research and checking availability
of FFT Powder
20-22nd May Doing free Sampling & approaching New customer for FFT Powder
23-8thJune Doing promotional activity, free sampling & making product
availability near to where promotional activity was done.
9-15thJune Merchandising, Sales promotion activity, Implementing RED,
Working in visit area of where Coca-Cola’s global head visit was
scheduled.
16th-17thJune Working with S.T.L. & understanding of Distributer Services
18th June Meeting with A.O.D. of Gujarat Mr. Sanket Ray
th
19 June-1july Preparing FFT Powder hand book & Reorder of FFT Powder &
making N.C.
2ndjuly Plant Visit & Operational discussion
3 -8th July
rd
Working with S.T.L. & observation regarding Services provided by
Coca-Cola India
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CHAPTER 2
RESEARCH
METHODOLOGY
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a) Research Objective:
Primary objective
To know Retailer’s Perception towards Services Provided by Coca Cola.
Secondary objective
To study the distribution system of Coca cola.
To know the merchandising at Coca Cola.
To Undertaking Sellingactivity of Coca Cola.
To prepare Handbook of Fanta fun taste powder.
Research plan:
Type of Research: Descriptive
Data collection:
Primary data collected: Questionnaire
Secondary data collected: Company’s website, Company’s magazine
Research instruments: Personal Interview, Observation, Survey
Types of questions: Dichotomous & Multiple choice multiple
responses
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Sample design:
Sample size: 50
Sampling type: Simple Random Sampling
Sampling method: Quantitative method
Sampling tool for collecting information: Questionnaire
d) Data Analysis
Tools: SWOT Analysis, Porter’s five force model, PEST Analysis
Limitations
Time is a constraint in the study, given more time analysis would have been better
with greater sample size
Non-cooperative approach and rude behaviour of some of the respondents.
Proper procedure for claims and discounting were not shown due to company’s
certain policies.
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CHAPTER 3
INDUSTRY PROFILE
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In India, beverages form an important part of the lives of people. It is an industry, in
which the players constantly innovate, in order to come up with better products to gain more
consumers and satisfy the existing consumers.
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in new bottles, resulting in a cost outgo of Rs 5 bn. Neither Coke nor Pepsi is in a position to
invest such a large amount.
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Leading Brands
Coca Cola, Thums Up, Limca, Fanta, Gold Spot, Rim Zim, Maaza, Pepsi, Mirinda, 7'UP,
Mangola, Slice, Duke's, Lemonada, Crush, Canada Dry, Campa.
Exhibit 2: market Growth rate of Beverage industry in India
Market Growth Rates
1990-91 - 1996-97 9.4%
1996-97 - 2001-02 7.8%
2001-02 - 2006-07 6.5%
2004-05 - 2009-10 5.4%
2009-10 - 2014-15 3.5%
Sensitivity Coefficient 5.2%
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CHAPTER 4
COMPANY PROFILE
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achieve dominant global market share. As a result of Coke’s status as a military supplier, Coca-Cola
was exempt from sugar rationing and also received government subsidies to build bottling plants
around the world to serve WW II troops.
Turn of the Century Growth Imperative
The 1990’s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD) industry in the
United States, achieving only 0.2% growth by 2000 (just under 10 billion cases) in contrast to the 5
7% annual growth experienced during the 1980’s. While per capita consumption throughout the world
was a fraction of the United States’, major beverage companies clearly had to look elsewhere for the
growth their shareholders demanded. The looming opportunity for twenty-first century was in the
world’s developing markets with their rapidly growing middle class populations.
(“Coca-Cola India” Nymph Kaul, 2004. and Coca-Cola Company Website: http://www2.cocacola.Com/heritage/ and Pendergrast,
For God, Country and Coca-Cola. Charles Scribner’s , 1993.)
MISSION
To Refresh the World... In body, mind, and spirit
To Inspire Moments of Optimism... Through our brands and our actions
To Create Value and Make a Difference... Everywhere we engage.
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PROFIT: Maximizing return to shareowners while being mindful of our overall
responsibilities.
PEOPLE: Being a great place to work where people are inspired to be the best they
can be.
PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate
and satisfy peoples’ Desires and needs.
PARTNERS: Nurturing a winning network of partners and building mutual loyalty.
PLANET: Being a responsible global citizen that makes a difference.
India History
India is home to one of the most ancient cultures in the world dating back over 5000
years.
At the beginning of the twenty-first century, twenty-six different languages were
spoken across India, 30% of the population knew English, and greater than 40% were
illiterate. At this time, the nation was in the midst of great transition and the dichotomy
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between the old India and the new was stark. Remnants of the caste system existed alongside
the world’s top engineering schools and growing metropolises as the historically agricultural
economy shifted into the services sector. In the process, India had created the world’s largest
middle class, second only to China.
Coca-Cola in India
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather
than reveal its formula to the Government and reduces its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in
India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years,
with its launch in Agra. An agreement with the Parle Group gave the Company instant
ownership of the top soft drink brands of the nation. With access to 53 of Parle’s plants and a
well set bottling network, an excellent base for rapid introduction of the Company’s
International brands was formed. The Coca-Cola Company acquired soft drink brands like
Thumps Up, Goldspot, Limca and Maaza which were floated by Parle, as these products had
achieved a strong consumer base and formed a strong brand image in Indian market during
the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of
the Coca-Cola Company.
In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-
entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the
Coca-Cola Company. However, this was based on numerous commitments and stipulations
which the Company agreed to implement in due course. One such major commitment was
that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favour of
resident shareholders by June 2002.
Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing
locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling
Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture
process of a range of products for the company. It also has a supporting distribution network
consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services
required to cater to the Indian market are made locally, with help of technology and skills
within the Company. The complexity of the Indian market is reflected in the distribution fleet
which includes different modes of distribution, from 10-tonne trucks to open-bay three
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wheelers that can navigate through narrow alleyways of Indian cities and trademarked
tricycles and pushcarts.
“Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like
“Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This
resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India.
Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch
of the new packaging of 200 ml returnable glass bottles which were made available at a price
of Rs.5 per bottle. This new market accounted for over 80% of India’s new Coca-Cola
drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their
business should benefit, thereby inducing them to uphold these values, enabling the Company
to achieve success, recognition and loyalty worldwide.
COBO
FOBO
CONTRACT PACKAGING
Manifesto of Growth
VALUES
The values that the employees in the Company are expected to keep up to and work by regularly are
as follows:
LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy and zeal, to
deliver outstanding results.
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INNOVATION: To continuously strive for progress and reach the next level of excellence in
everything we do.
PASSION: To be deeply committed and display drive and energy in the quest to deliver outstanding
performance.
TEAMWORK: To unite for greater strength and work collectively as a group towards the
achievement of common goals.
OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the lowest
appropriate level.
ACCOUNTABILITY: To be individually and transparently accountable to our colleagues for
delivering agreed targets and goals.
QUALITY POLICY
“To ensure customer delight, we commit to quality in our thoughts, deeds and actions by
continually improving our processes…Every time.”
Source: Coca-Cola Company Website
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Organisation structure of the Sales department in HCCBPL
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Manufacturing Process at HCCBPL
WATER TREATMENT:
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Coca-Cola follows a batch treatment which includes coagulation & flocculation. The
method ensures disinfection and settling of all macro impurities and thereafter it pass to sand,
carbon filters to remove off odour ,off colour, off taste, and thus it is strictly bought in line
with the WHO requirements. We are also using state of art –micron filtration process where
the water is filtered up to the extent of 1 micron before it is fed to the process.
This extensive treatment of water under strict monitoring and sampling for quality
leads to pure hygienic water with the highest quality meeting the Coca-Cola standards.
SYRUP PREPARATION:
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards, which serves as the strict criteria before acceptance of a lot. To
ensure high quality of syrup, it is subjected to hot treatment wherein it is given a contact time
with hyflo and carbon at elevated temperature. It is then passed through a filter press which
removes the carbon particles and other impurities before it declared fit for concentrate
mixing. All this process takes place under the strict vigil by the quality department which
maintains the appropriate records of the numerous tests carried out in the entire process
which makes it a fool proof process.
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the simple
syrup in very strict hygienic condition to yield final syrup. The entire syrup manufacturing
area is maintained under a constant positive pressure which rules out the possibility of any
external particles entering into the process room.
CONTAINER WASHING:
Container has been identified as one of the major critical control point in the entire
manufacturing process & that’s the reason that company has laid some of the very stringent
and full proof systems which ensures Coca-Cola product to be of the highest quality and
reflects our commitment towards delivering the best in class product to the consumers.
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash inspections
stations which ensures removal of rusty neck bottles, excessively dirty bottles, bottles
carrying foreign matter, foreign bottles. And thus the good bottles pass into the bottle
washing machine which uses intensive mechanical and chemical processes to clean and
disinfect the bottles thoroughly and ensures the bottles to be ready for filling. However as an
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additional safety, there is again a post wash inspection station comprising of 4 sub-stations,
which ensures removal of the chip necked bottles and suspected bottles from the lot. Thus the
bottles are subjected to series of stringent inspections before it is fed to the filler for filling.
MIXING, PROPORTIONING:
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming strictly to
company’s norms and specifications. It is carried out by an Italian Machine-MOJONNIER.
FINAL INSPECTION:
After date coding, there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for casing to
the caser machine.
MANAGING THE WASTE WATER:
Production lines maintain the waste water from the bottle washers, Syrup and Filler
rooms. Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through 800 meters long pipeline specially laid to discharge the treated waste
water away from inhabited areas. Part of this water is being used for gardening purpose
within the plant premises.
MARKET & CUSTOMERS:
Once the finished product is ready, it is transported to the distribution centres and then
to retail outlets by way of route trucks. The consumer buys the soft drink from the retailer
outlets. The empty bottles are simultaneously collected by the distribution channels at the
time of dispensing the finished products.
SUPPLIERS AND OTHER BUSINESS PARTNER:
Other than water and concentrate, bottling operation require sugar, CO2, bottles,
crates and other miscellaneous materials. The Coca-Cola India division has a Supplier
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authorization program where suppliers are authorized based on a defined criterion.
Environmental considerations are amongst the critical of these criterions.
EMPLOYEES, PLANTS & MACHINERY:
The no of total unit employees is approximately 113 & in summer season, which is a
peak season for sale of soft drinks, the plant works for three shift operation round the clock.
The overall education level of the employees is good and they obviously have a good
expertise in water treatment and purification processes. Extensive in-house training programs
are conducted to maintain the competency of the manpower in respective areas. The plant and
machinery consists of state of art bottling machinery and test equipment to get consistent
quality product at the optimum usage of raw materials. The plant also has an extensive
quality test laboratory with equipment like spectrophotometer, density meter, micro lab etc.
to conduct on the spot tests at various stages of production.
A typical bottling line will consist of uncaser- pre wash inspection station –conveyers-
bottle washer-post wash bottle inspection station—filler-final light inspection station-
conveyor-and caser.
Competitor Analysis
Indian soft drinks market is predominantly controlled by two major multinationals
namely Coca- Cola and Pepsi, which have carefully stifled out the local competition here in
India. Penetrating tough Indian psychology and making their products feel accepted was the
toughest challenge in front of them. A brief overview of the soft drinks giant biggest
competitor will help in gaining a better insight of the soft drinks market in totality.
CURRENT MARKET POSITION
There has been much controversy and debate on the market share standings between
the two companies in the Indian subcontinent and a substantial and a consolidated figure has
been unavailable for reference. This is mainly because both companies had approached
different market research companies for making a study about the market share standings.
Pepsi Co had approached IMRB while Coca- Cola had entrusted this responsibility on ORG.
According to the survey done by IMRB Pepsi’s market share was found to have increased
from 47% to 49% while according to the study conducted by ORG Coca- Cola’s market share
was claimed to be 59%.
The battle for cola dominance in India is all set
to have a new contender with South America based
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Ajegroup launching a new cola drink, Big Cola. The company has already invested in a unit
at Patalganga, Maharashtra and is planning to expand its base to Maharashtra and Gujarat
before spreading to the rest
Product
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Product Mix
A product mix is a set of all the product lines and items that a particular seller offers for
the sale.
A company’s product mix dimension provides the handles for defining the company’s
product strategies. The company can increase its business in three ways:
PRODUCT DECISION
Figure show the important decisions in the development and marketing of marketing
of individuals products and services. We will focus on design about product attributes
brandings packaging .labeling and product support services.
Branding
Brand is a name term, sign, symbol, or design or a combination of their intended to
identify the goods or services of one seller or a group of seller and to differentiate them from
those of competitors. The various brands of Coca-Cola in India are the following:
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1. COCA-COLA:-
Slogan: -“BRRRR”
COCA-COLA IS THE MOST POPULAR AND HIGHEST-SELLING SOFT DRINK IN
HISTORY, AS WELL AS THE BEST-KNOWN PRODUCT IN THE WORLD.
Coca-Cola has a truly remarkable heritage. From a humble beginning in 1886, it's
now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic
beverages in the world.
In India, Coca-Cola was the leading soft-drink till 1977 when the government policies
necessitated its departure. Coca-Cola made its return to the country in 1993 and made
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significant investments to ensure that the beverage is available to more and more people,
even in the remote and inaccessible parts of the nation.
2. DIET COKE:-
Slogan:-“Live it Light.”
3.THUMS UP:-
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Slogan:- “Taste the Thunder”
It is a leading carbonated soft drink and most trusted brand in India. Originally
introduced in 1977, Thums 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 the boys.
4. FANTA:-
Over the years it has occupied a strong market place and is identified as “FUN
CATALYS”.
5. KINLEY WATER:-
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Slogan:- “Boond Boond Mein Vishwas”
Kinley water understands the importance and value of this life giving force. Kinley
water thus promises water that is as pure as it is meant to be.Kinley water comes with the
assurance of safety from The Coca-Cola Company. That is why we introduced Kinley with
reverse –osmosis along with the latest technology to ensure purity of our product. Because
we believe that right to pure, safe drinking water is fundamental.
6. KINLEY SODA:-
7. SPRITE:-
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In India sprite was launched in 1999 and today it has grown to be one of the fastest growing
soft drink.
8.LIMCA:-
9.MAZZA:-
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preparation (In a minute). Minute Maid –
one of the world's largest juice and juice
drink brands
PACKAGING
Packaging means the activities of designing and producing the container or wrapper
for a product.
Packaging involves designing and producing the container or wrapper for product.
The package may include the product’s primary container a secondary package that is thrown
away when the product is about to be used and shipping package necessary to store ,
information appearing the product labeling printed information appearing on or with the
packaging is also part of packaging. Label ways rouge from toys attached from product the to
complex graphic that identify the product or brand, such as the product the label weight also
described several things about the product who made its contents how it is to be used.
Packing refers to the activities of designing and producing the container or wrapper for
a product. The package may include the products primary container.
Coca-Cola products, almost all of them are available in bottles of200 ml, 250 ml, 300
ml, 600 ml pet jar, 1000ml, 1.25l. and 2l. bottles as well as 300 ml cans.
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The company use cola lime for preparing Coca-Cola from Pune, getting raw-material (glass)
from approved suppliers.
In strip packaging there is aluminum foil on both the sides. Strip packing is done for
providing stability to those products which are having less productivity.
In facilitates branding and advertising of products.
In serves as a silent salesman. It induces the buyers to make re order.
It has got display value.
It helps the seller to increase his sales and obtained higher prices than he could
get from unpacked good.
Printed literature containing “Instruction to use the product” can be easily
passed on to the consumers by putting in the package.
Packaging given the product a prestige an individually and identity which the
goods sold in loose form do.
The below table shows the brands and products of different pack sizes being sold by the
company in Kanpur region:
Thums up 200 ml and - 350 ml, 600 ml, 300 ml Various sizes
300ml 1.25L and 2L
Sprite 200 ml and - 350 ml, 600 ml, 300 ml Various sizes
300 ml 1.25L and 2L
The different pack sizes on which discount is given by the company is:
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200 ml RGB1 CSD2
250 ml juice3
300 ml RGB CSD
600 ml Pet4 CSD
1200 ml Pet Juice
2000 ml Pet CSD
300 ml Can CSD
200 ml Tetra Pack Juice
1
RGB – Returnable Glass Bottles
2
CSD – Concentrated Soft Drink
3
Juice – Maaza
4
Pet – Plastic bottle
The below table shows the number of bottles in each case and brands available in
different pack sizes.
Pack Sizes No. of bottles per Brands
case
200 ml RGB 24 Coke, Fanta, Limca, Thums up and Sprite
250 ml RGB 24 Maaza and Minute Maid Pulpy Orange
300 ml RGB 24 Coke, Fanta, Limca, Thums up, Kinley Soda and
Sprite
300 ml Can 24 Coke, Fanta, Limca, Thums up, Sprite and Diet
Coke
400 ml 24 Minute Maid Pulpy Orange
500 ml Pet 24 Diet Coke, Kinley Soda and Kinley water
600 ml Pet 24 Coke, Fanta, Limca, Thums up, Sprite and
Maaza
200 ml Tetra P 27 Maaza
1 Ltr 12 Kinley Water
1.2 ltr Pet 12 Maaza and Minute Maid Pulpy Orange
2 ltr Pet 9 Coke, Fanta, Limca, Thums up and Sprite
2.25 ltr Pet Coke, Thums up and Sprite
Labeling
Labels may range from simple tags attached to products to complex graphics that are
part of the package.
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Labeling is mainly done in order to promote the product through attractive graphic. In
the “Coca-Cola” company, the labels are provided with bottles.
Quality
The better attributes of the product may be called the quality of the product. Quality
means the ability of the product to perform its functions, overall durability, precession, case
of operation and repair and other valued attributes.
Quality is one of the product which is more important in any product. Consumers
purchase only those products which satisfy their needs and wants. Which quality result is 100
% and it was good quality than consumer easily purchased it. Consumers satisfaction is
closely linked to quality. If any types of problems arises in quality of product then consumer
move to another product.
Coca – Cola’s company also believed on quality. It always take care the quality. In the
company of Coca – Cola they have special category of research and development when its
quality cheeked by the quality expert and after the quality checking it reach to the consumer
because quality is the main function of any product. Coca – Cola is a quality conscious
product due to it taste is same all around the world. After the doubling process its quality
capacity is major six months.
PRODUCT ADVANCEMENT
In April 1985 the company proudly introduces the new taste of coke the first change
in the secret formula since the product was created in 1886. The launch of coke with the new
taste took place in the United States and Canada. While the initial response to the new taste
confirmed the company’s marketing research, many consumers told the company they also
wanted on option. The company listened and in July 1985 the original formula of coca-cola
returned as Coca-Cola classic, in 1886, Coca-Cola became an still remains the top selling soft
drink of the united states of America. It is a brand No.1.
Price
“Price is the amount of money customers have to pay to obtain the product. Instead they
negotiate the price with each customer offering discount trade in allownness and credit terms
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to adjust for current competitive situation and to bring the price in the line with the buyer’s
perception values.
Price is important to stay in the competition every company. If price is very high then
products sales will be reduced. If price is less then product sales will be increase. But at a less
price company will be not able to get profit. So product price decide according to its
competitors based price. Hence in past Coca-Cola & Pepsi had rivalry in pricing product but
now both company has put price at same level.
Pricing policy is important because it is directly affects the earning of the concern and
therefore its successful functioning. Price is the amount of money customers have to pay to
obtain the product.
Coke launched the 200ml. bottle at Rs. 5/- in early 2003 which attracted the consumer.
After doubling process its capacity is six month flat. The cola major had 28 new lines running
in six months flat and even suppliers double capacity. Coke spent big money 100 million in
2003 and 70 million in 2004 to found the growth initiatives. The Rs. 5/- coke was often
retailed at Rs. 6/- and the price point was popular. That is concerned nearly 80 % of the
market and 300ml. price was Rs. 10 /- . then after the prices are almost doubled 200 m.l.
bottle is available now at Rs. 9.
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Diet Coke - - 20 - - - - - -
Coca – 09 12 20 - 25 - 38 63 65
Cola
Thums Up 09 12 20 - 25 - 38 63 65
Sprite 09 12 20 - 25 - 38 63 65
Limca 09 12 20 - 25 - 38 63 65
Fanta 09 12 20 - 25 - 38 63 65
Mazza 09 12 - - 26 - 55 - -
MMPO 08 - - 17 - - - - - -
MMNF - - - 20 - - - - - -
Kinley - - - 08 - 16 - - -
Water
Soda 05 08 - - 15 - -
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Pricing Policy
Pricing policies or strategies have played major, role in the company’s growth and
development over the course denotes the value of product or service expressed in money only
when a buyer and seller agree on price they can exchange and transact the good and services
and lead to transfer of ownership.
A company may choose various kinds of pricing for their product. At Coca-Cola
Company limited the price of the product like soft drink, mineral water, etc. are determined
according to various internal and external factors such as:
Cost of Raw-Material
Fix Cost
Variable Cost
Cost of Packing
Cost of Sales Promotion
Place
Distribution Channel
These channels transfer goods from producer to end users that are consumers. It over
comes the major factor such as time placed and possession gaps that separate goods and
services from those who would use them. Members of the marketing channel perform many
key functions. To the extent that the manufacturer performs these functions, its cost rises and
its price becomes high. At the same time, when some at these functions are shifted to
intermediaries the producer is lower, but the intermediaries must change more to cover the
cost of their work in dividing the work of channel. Channel of distributors are also called
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trade channels the problems of selecting the most suitable channel of distribution for a
product is complex. Channel is the combination and sequence of agencies through which one
more of marketing follows and moves.
Control of Outlets
About 80% of all retail stores are independence accounting for two thirds of all
retail sales. Other forms of ownership include.
Corporate Chain
Voluntary Chain and Retailer Co-operative
Franchise organization
Merchandising Conglomerate
LOCATIONAL ADVANTEGES
Company chooses this location because….
Easily get facility of water supply
Nearly big cities like Baroda,Ahmedabad
To develop rural area like Kheda district and its villages
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Government of Gujarat favour to established
Thus many factors combine together to give coca-cola location advantages and this has
resulted its efficiency.
Promotion
The Product Promotional is a term used to describe the set of tools that a business can
use to communicate effectively the benefits of its products or services to its customers.
The promotional mix includes the following tools
Advertising
Public relations
Sales promotion
Direct marketing
Personal selling
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to trader that if it sells he could get some special discount agter selling decide time limit. So,
trader always tries to sell that product first. So, company tries to promote its products to using
all these formulas or factors.
Advertisement
Advertisement is important to introduce the product in the market. Advertisement is
the channel of information for consumer advertising is long term channel which gives benefit
in long time when product advertise is very attractive then it affect the consumer to purchase
their product. Advertising makes purchasing easy for consumer. Advertisements prove that
the particular brand will be better than other brand of same goods. Today without advertising
products sale is very difficult TV Channels, Radios, Posters, News Papers, Bill Broads are the
main way of advertising.
In India coke give advertising with help of super stars of films and player like Amir
Khan, Hritik Roshan Aishwarya Rai, Salman Khan, Vivek Obroy , Rajwardhan Rathod,
Sehwag, Gautam Gambhir, Imran khan etc. who are the best super stars of the bollywood and
every person attract by them and they gives different messages in their adds about the
products.
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In the year 2005 Coke select in their add shooter Raj Vardhan who is shooter of India
who win many medal in their shooting game and attract all Indians with their game and coke
selected him in their add and he attract the cokes consumers also with their thoughts. For
there new brand ‘Vanil Coke’ company had choose Vivek Obroy ,Aishwarya Rai, Virendra
Shwag, Amir Khan, Hritik Roshan and Raj Wardhan Rathod came with Coca – Cola add.
Coca Cola is also promotion partner of two IPL teams.
Today Coca - Cola has become the latest company to use an umbrella advertising coma
ping to support its portfolio of brand. After all how many consumers know that Coca – Cola
was 67.4 billion in a recent inter brand study owns the Fanta, Minute maid and miler brands
in addition to the anonymous brown fizzy drink with its lemon lim and diet varmints.
Public relations
An earlier definition of public relations, by The first World Assembly of Public
Relations Associations, held in Mexico City, in August 1978, was "the art and social science
of analyzing trends, predicting their consequences, counselling organizational leaders, and
implementing planned programs of action, which will serve both the organization and the
public interest."
(Jensen Zhao. Encyclopedia of Business, 2nd. Ed. Retrieved from findarticles.com)
Building good relations with the company various public by obtaining favorable
publicity, building up a good corporate image handling or heading off unfavorable rumors,
stories and events. Major public relations tools include press relations, product publicity
corporate communications, lobbying and counseling.
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schools and subsequently generate monetary resources for over 100 schools across the
country.
The campaign started with the Campaign Ambassador, Sachin Tendulkar unveiling
the campaign logo along with Mr. Atul Singh, President & CEO, Coca-Cola India and South
West Asia, and Dr. Prannoy Roy, Chairman, NDTV.
(www.indiaprwire/pressrelease/food/2011012475823.com)
Sales Promotion
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Sales promotion Activity for Newly launch product
“Fanta Fun Taste powder”
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The main consumer promotion tools include sample, coupons, cash, refunds, price packs,
premiums, advertising specialties, patronage rewards, point of purchase displays and
demonstrations and contests, sweepstakes and games.
Sample “ A small amount of a product offered to consumers for trail. “ Samples are offers
of a trial amount of a product. Sampling is the most expensive way to introduce a new
product.
Coupon “Certificate that gives buyers a saving when they purchase a specified product.”
Cash Refund
Offer to refund part of the purchase price of a product to consumers who send a
“proof of purchase” to the manufacturer.
Price Pack
Reduced price that ‘P’ s market by the product directly on the label or package.
Premium
Good offered either free or at low cost as an incentive to buy a product.
Advertising Specialty
Useful article imprinted with an advertiser’s name, given as a gift to consumers.
Point of Purchase Promotion
Display and demonstration that takes place at the pint of purchase or sale.
Personal Selling:
Personal Selling involves business-to-business trade. In selling to business, sales
people may not offer brides to purchasing agents or to others who can influence the sale.
They may not obtain or use technical or trade secrets of competitors through bribers or
industrial espionage. Finally, sales people must not disparage competitor or competing
product by suggesting things that are not true.
SOCIAL RESPONSIBILITY
Social responsibility is the part of company oraganisation. Social responsibility of
business may be at four level;-
1. Economic responsibility;-
2. Legal responsibility;-
3 .moral responsibility;-
4 .voluntary responsibility;-
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1) Economic responsibility;-
The coca-cola company provide help to poor and needy also give good facility, loan and also
arrange medical check up camp etc .This is economic responsibility.
2) Legal responsibility;-
“This is towards the concerned sections like trade unions, workers etc. The company has to
abide by laws in this regard” the Coca-Cola company spend good salary, bonus
,remuneration, scholarship, other-facilities etc.
Company spends remuneration, salary, other facility according to law.
3) The social responsibility;-
In social responsibility includes moral responsibility also like creating zero pollution. Thus
the Coca-Cola company planted a many tree for zero pollution.
4) Voluntary responsibility;-
The company may volunteer for certain responsibility like tree planting, started a
school in village also they give computers in the school and gram panchayat of the goblej
village also provide scholarship to the student of nearer village.
In time of natural calamities like earth quake cyclone, t-tsunami, heavy rain etc. at
the time company help the people by giving food, mineral water, blanket, food packet etc.
The Coca-ColaCompany provides their ambulance services if there is any accident
on national highway no-8.
The Coca-ColaCompany provides many types of facilities to their workers.
They also provide many welfare facilities to their workers like best canteen facility, pure
drinking water, health services, women and child welfare etc.
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Service frequency: This is another factor that affects the business. Service frequency
is the time gap between visiting a particular outlet again. Service frequency directly affects
the rotation time which in turn affects the value of business.
Demand pattern for the market: Every product has a different demand pattern and
affects the business.
Price of the product: Price of the soft drinks also affects the business. Due to perfect
competition in soft drink market, price of a product plays a major role in business.
Disposable Income: Disposable Income of the consumers also affects the business of
the soft drink players. A high disposable income of the consumers ensures a high demand for
the products in the market.
Demographic Profile: Demographic profile of consumer also affects the business and
needs to be considered.
Competitor’s Policy: The policies of the competitors also affect the working of the
business of other companies.
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CHAPTER 5
THEORITICAL ASPECT
OF STUDY
Repeat order
Exit/ Follow up
Closing Conversation
Solution of quarries
Handling objective
Perception
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Perceptions vary from person to person. Different people perceive different things
about the same situation. But more than that, we assign different meanings to what we
perceive. And the meanings might change for a certain person. One might change one's
perspective or simply make things mean something else.
Retailer’s perception regarding Coca Cola is very important. Because he is the main
intermediate between Company & Customer. Hence for Coca Cola it is very imp to know
Retailer’s perception regarding services provided by Coca Cola Company.
Merchandising
Merchandising is the methods, practices, and operations used to promote and sustain
certain categories of commercial activity. In the broadest sense, merchandising is any practice
which contributes to the sale of products to a retail consumer. At a retail in-store level,
merchandising refers to the variety of products available for sale and the display of those
products in such a way that it stimulates interest and entices customers to make a purchase.
In retail commerce, visual display merchandising means maximizing
merchandise sales using product design, selection, packaging, pricing, and display that
stimulates consumers to spend more. This includes disciplines in pricing and discounting,
physical presentation of products and displays, and the decisions about which products
should be presented to which customers at what time. This annual cycle of merchandising
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differs between countries and even within them, particularly relating to cultural customs like
holidays, and seasonal issues like climate and local sporting and recreation.
Visual merchandising
(Source:http://en.wikipedia.org/wiki/Merchandising)
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CHAPTER 6
DATA INTERPRETATION
&
ANALYSIS
The customers of the Company are divided into different categories and different
routes, and every salesman is assigned to one particular route, which is to be followed by him
on a daily basis. A detailed and well organized distribution system contributes to the
efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency
thereby leading to higher profits to the firm.
DISTRIBUTION ROUTES
The various routes formulated by Coca Cola for distribution of products are as
follows:
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Key Accounts: The customers in this category collectively contribute a large chunk
of the total sales of the Company. It basically consists of organizations that buy large
quantities of a product in one single transaction. The Company provides goods to these
customers on credit, payments being made by them after a certain period of time i.e. either a
month of half a month.
Examples: Clubs, fine dine restaurants, hotels, multiplexes, Corporate houses etc.
Future Consumption: This route consists of outlets of Coca-Cola products, wherein
a considerable amount of stock is kept in order to use for future consumption. The stock does
not exhaust within a day or two, instead as and when required stocks are stacked up by them
so as to avoid shortage or non-availability of the product.
Examples: Departmental stores, Super markets etc.
Immediate Consumption: The outlets in this route are those which require stocks on
a daily basis. The stocks of products in these outlets are not stored for future use instead, are
exhausted on the same day and might run a little into the next day i.e. the products are
consumed at a fast pace.
Examples: Small sized bars and restaurants, educational institutions etc.
General: Under this route, all the outlets that come in a particular area or an area
along with its neighbouring areas are catered to. The consumption period is not taken into
consideration in this particular route.
DISTRIBUTION SYSTEM
Direct distribution: In direct distribution, the bottling unit or the bottler partner has
direct control over the activities of sales, delivery, and merchandising and local account
management at the store level.
Indirect distribution: In indirect distribution, an organization which is not part of the
Coca-Cola system has control on one or more of the distribution elements (Sales, delivery,
merchandising and local account management)
Merchandising: Merchandising means communication with the consumer at the
point of purchase to convey product benefit, value and Quality. Sales people and delivery
personnel both have this responsibility. In certain locations special teams who go into
business locations to specifically merchandise our products.
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DEPARTMENTS INVOLVED IN THE DISTRIBUTION
PROCESS
The Distribution process mainly consists of three departments:
Distribution Department: It appoints distributors and establishes a distribution network,
processes approved sale orders and prepares invoices, arranges logistics and ship products,
co-ordinates with distributors for collections and monitors distribution stocks and their set-up.
Finance Department: It checks credit limits and approves sales orders in compliance with
the credit policy followed by the firm, records collections from distributors, periodically
reconciles outstanding balances from distributors, obtains balance confirmation from
distributors and follows up outstanding balances.
Shipping or Warehousing Department: It dispatches goods as per approved by order,
ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out
area and updates warehouse stock records in a timely manner.
RED CONCEPT
RED stands for Right Execution Daily. It is a survey method for the company to know their position
in the market.
ABOUT RED
To check the availability of the visi cooler provided by the company to the retail outlets for
their products.
To check the activation in various outlets.
To check the branding order of the various products in the cooler.
Survey has done in the four topics-
Impurity
Brand Order
Availability
Activation
IMPURITY
There should be no impurity in the visi cooler of the company. Impurity here refers to that brand
which is presented in the visi cooler other than coke’s product. Therefore not other product of any
other company may not be in the cooler.
BRAND ORDER
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The company has given a brand order to the market developers to arrange the different brands in a
specific order in the cooler. The order should be in such a way-
Thumsup
Coca cola
Sprite
Limca
Fanta
Maaza
Kinley
Pet & Juice
AVAILABILTY
Availability is done according the type of outlet. There are four type of outlet mentioned below.
According to this market developer has to ensure the availability of the products in the particular
outlet.
ACTIVATION
Activation is important because it helps to boost the sales of the company. it is done through the Glow
sign, Shelf display, flanges. Combo boards, Table tops .This boards usually gives to the E&D
outlets .It helps to attract the customers. Rack with header is provided to the grocery stores
Activation Elements
Market developer must ensure that all these activation elements must available at all the outlets.
Detail of activation elements must available at GROCERY STORES:
1. WARM DISPLAY RACK
2. SHELF DISPLAY
SHELF DISPLAY
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DISPLAY OF RACK VISI COOLER
OPTIONAL ELEMENTS:-
1. STANDEE
2. SIX MOBILE HANGER
3. VISI COOLER BRAND STRIP
4. WARM DISPLAY RACK
5. TABLE TOP RACK
6. TENT CARD
Visual merchandising
Visual merchandising is the activity of promoting the sale of goods, especially by their
presentation in retail outlets.
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Outlet Segmentation Model for 2011
Introduction of Platinum VPO and Grocery-2, Cinema, Travel-1, and Travel-2 channels
Channel
Type
Based on
consumption
Convenience occasion
E&D Type - 1
E&D Type - 2
Annual KO VPO
Grocery – 1 (Traditional) • Platinum : >1500 cs
• Diamond : > 800 cs
Grocery – 2 (Modern)
• Gold : 500-799 cs
Cinema – (Single Screen) • Silver : 200-499 cs
• Bronze : < 200 cs
Travel – 1 (Railway)
VPO
Class
Income level of
Income locality
Class
TYPES OF OUTLETS
The company has divided their outlets on the basis of the following criteria-
Volume
Channel
Income group
1. VOLUME
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There are four types of outlets according to the volume of sales of the outlet-
2. CHANNEL
(A) GROCERY STORE
Grocery (customer profile): Store stocking a variety of regular uses household items. The
channels provide an opportunity for penetration as it propels home consumption. It includes
all kirana stores, departmental stores, supermarkets, provision stores etc.
Necessary Availability - 2 liter and 300ml
(B) EATING & DRINKING CHANNEL
Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller
dhabas. These outlets offer multiple opportunity to effect sales as people usually order
something to drink along with food. It includes
Restaurants
Bars and Pubs
Dhabas
Cafes
(C) EATING & DRINKING CHANNEL2
It includes bakery, sweet shops, tea shops, soft drink shops and juice centre.
(D) CONVENIENCE CHANNEL
Pan/bidi shops (customer profile) : This segment includes PAN BIDDI outlets that stock
cigarettes, mint, confectionary. It covers STD/ISD phone booths, travel channel etc. Small
outlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml.
3INCOME GROUP.
According to the income group of the area-
Low- Those outlets where low income customer comes.
Medium- Those outlets where medium income customer comes.
High- Those outlets where high income customer comes.
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TYPES OF VISI COOLER/CHEST
Cooler - 2C/s Chest- 4C/s
4C/s 10C/s> above
7C/s
9C/s
20C/s
30C/s
PJP(permanent journey plan)
(P.J.P. plan):The P.J.P. plan is a day wise schedule of a M.D.(Market Developer) which
contains the names of the outlets to be visited by him coming under the campaign R.E.D.
where the project has to be implemented.
After getting permanent journey plan the next step was to visit the outlets for gaining
initial information of every individual outlet as well as market on a whole. The visit to all the
outlets of that area helped in revealing its market condition. Visiting the outlets clearly
showed the picture of the market situation prevalent in market..
PRE SALE CONCEPT
This is a new concept by the company. In this concept company takes order one day before
and then delivers the product to each route. So this gives more time to market developer to
assure RED.
This concept has so many advantages-
This gives more time to the market developer for the activation & branding purpose.
By this company can easily implement the RED concept in better way.
Presale concept makes assure of more availability of the products in the market.
This concept is easy in processing.
By this concept market developer can arrange the product in better way.
The Company can display its products in proper way so that customers can attract towards it.
Does the preseller come to your outlet & clean company’s cooler & arrange the product
properly?
(A)Percentage Analysis
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Questionnaire Analysis
Q-Which product of Coca Cola is having higher sales at your outlet?
Thums up Maaza Coca Cola Sprite Limca Fanta
40 4 4 2 0 0
8% 8% 4%
80%
Interpretation
Here we can say that Thums up is the leading brand when it comes to sells of Coca
Cola brands. Most of the outlet are having highest sells of Thums up.
Q-Does the preseller come to your outlet & clean company’s cooler & arrange the
product properly?
Yes No
Chart Title
32 18 36%
Yes
No
64%
Interpretation
Every preseller has route of visit & few responsibilities apart of taking order. It is his
duty to fulfil all assign work. Here we can say that there is service gap. Due to any reasons
Retailers are not getting all the necessary services by Coca Cola.
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Q-Do you think that arranging the product as per RED, is useful for your sale?
28%
Yes No
36 14 Yes
No
72%
Interpretation
Here we can say that most of the retails agrees on the point that the Coca Cola’s stretergy
helps them in increasing their Sales.
Q-Do you believe that posters, banners, fledge& other promotional equipment affect
your sale?
Yes No
100 0
Yes
No
100%
Interpretation
Here we find that all of the retailer of samples size agreed on that Sales can be
increased by using such equipment.
Q-Have you ever been informed by preseller about RED (Right Execution Daily)norms
for arrangements of products purity & availability of each SKU’s?
26%
Yes
Yes No
No
13 37
74%
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Interpretation
Here we can say that 74% of retailer where even not knowing all the RED norms & hence the
many collers were impure. These clearly shows that communications gap between company
& retailers.
32%
Yes No
34 16
Yes
No
68%
Interpretation
These data clearly shows company’s communication towards consumer is very clear. And
hence retailer’s works get limited. So he is keen to put the product which is fast moving& he
does not need to put product for longer time.
Q-Will you prefer Fanta fun taste powder as a RTD(Ready to drink) & recommend to
other people?
60%
Interpretation
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The 60% of existing Coca Cola customers are ready to prefer the product. But there are few
customers are not ready to prefer product due to slow moving of product & many are not
willing to put product because product is new in market
30%
Yes No Yes
35 15 No
70%
Interpretation
Here we can say that majority of the Retailers are happy with the Coca Cola’s Model &
hence company should continue like this. But still there 30% Retailers are not satisfied hence
Coca Cola should do something regarding that.
6%
66%
Interpretation
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Here this kind of problem were faced of billing was higher at 66%, these problem is faced
where in distribution area were black berry system is used for taking orders. These also
shows that retails are not having problems regarding Product quality, which is good for
Coca Cola.
10%
4% 66%
Interpretation
By this research its shows that Brand Names gives 66% of sales. Hence launching new flavour with
Brand name will give product better sales.
26%
Yes
No
Yes No 74%
13 37
Interpretation
Here we can say that there is Service gap. 74% of retailers are not getting Service of cooler. Services
of cooler are provided by Cooler dept. of coke. Hence there should be some way to direct contact
cooler dept. by retailer.
Q-There are no products in Non-alcoholic beverage section that can be compared with
Thums up.
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Yes No
Yes No
27 23 46%
54%
Interpretation
The majority of retailer agreed to this statement which shows that Thums up is not just
market leader but also having strong presence in Retailer mind.
Strength
Strong product line
Coca cola has strong product in existing market. These products are fast moving in
nature. These soft drinks not only quench thirst but also refresh everyone it touches. They
have two cola brands Coca cola & Thums up which capture big market share in terms of sales
volume. Company has refreshing drink likes Limca, Sprit & Fanta. In juice segment company
have brands like Maaza & Minute maid.
Product Promotion
The Product Promotional is a term used to describe the set of tools that a business can
use to communicate effectively the benefits of its products or services to its customers.
The promotional mix includes the following tools
Advertising
Public relations
Sales promotion
Direct marketing
Personal selling
Brand Recognition
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Coca Cola Company has different brands all the Brands have high Brand
Recognition.
Customer loyalty
Customer loyalty is all about attracting the right customer, getting them to
buy, buy often, buy in higher quantities and bring you even more customers.
This kind of Customer Loyalty is there with Coca’s Brands due to its taste.
Word of mouth Marketing
Word-of-mouth marketing (WOMM) is an unpaid form of promotion—oral or written , in which
satisfied customers tell other people how much they like the product or service. Word-of-mouth is
one of the most credible forms of advertising because people who don't stand to gain personally
by promoting something put their reputations on the line every time they make a
recommendation.
RED Strategy
Weakness
Negative Publicity
Coca cola’s products have been subject to sustained criticism by both consumer
groups and watchdogs, particularly since the early 2000s. Allegations against the company
are varied and criticism has been based around; questionable labour practices, the company's
poor environmental record, possible inverse health effects etc, this type of Negative Publicity
has affected the company’s operations.
Water shortages, pollution of
groundwater and soil, exposure to
toxic waste and pesticides is
having impacts of massive
proportions in India. In a country
where over 70% of the population
makes a living related to
agriculture, stealing the water and
poisoning the water and soil is a
sure recipe for disaster. Thousands
of farmers in India have been
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affected by Coca-Cola's practices, and Coca-Cola is guilty of destroying the livelihoods of
thousands of people in India.
Health Issues
Possible health effects of Coca-Cola products, use of Pesticides etc. this all are
very critical criticism for a company with international operations & wants to grow in
India.
No Promotion activity directly related to Cricket World Cup
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Replacement Problem
Vehicles are less.
More seasonal demand
Poor service
Large number of non-bias outlet.
Opportunity
Innovation
Coca Cola continues to implement product innovation is because of the intense
competition in the non-alcoholic beverage industry. In order to remain competitive and to
maintain its leadership position, Coca Cola introduces innovative products that create value
for the customers and shareholders. The nonalcoholic beverages segment of the commercial
beverage industry is highly competitive. The nonalcoholic beverages segment of the
commercial beverage industry is highly competitive.
Coca cola has done continues innovation in past many years & with the innovation
only they can survive in this market, where there are lot of other products are available.
Innovation is not only limited to Product but it is in Packing, Equipment, Marketing &
Marketplace.
E.G.:-
Coca-Cola India plans to offer an entire range of its chilled soft drink products to markets deep in the
hinterland, even where there is no electricity.'eKOCool', a chest cooler, developed internally by the
Indian arm of the Atlanta-based multinational, operates exclusively through solar energy.
The innovation gives Coca-Cola a competitive edge to tap new rural markets and ramp up sales of a
product which is always best served chilled. Introduced in select rural markets earlier this summer, it
has already improved sales dramatically and company officials expect orders of the product from other
countries in the system as well.
(http://articles.timesofindia.indiatimes.com/2011-06-06/india-business/29625384_1_coca-cola-india-rural-markets-solar-energy)
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aggressively. Not only they are diversifying product wise but they are offering different
Flavor in same products e.g. Vanilla Coke, Fanta Apple.
India is one of the fastest developing countries & heavily populated hence there is
huge & growing market for Coca Cola co. The nation per capita is increasing considerable.
Population of India has crossed 120 billion & per capita income is also increasing in double
digit hence there are high chances of growth. People’s disposable income is increasing which
shows by the soft drink companies double digit growth. Disposable Income of the consumers
also affects the business of the soft drink players. A high disposable income of the consumers
ensures a high demand for the products in the market.
Coca-Cola India, on the other hand, has delivered 15 consecutive quarters of growth, out of
which 12 quarters have seen double-digit growth. "If one looks at our latest Q1 2010 growth
numbers, Coca-Cola India's unit case volume grew by 29%. It involved share gains across key
beverage categories --both in sparkling and in stills," said a Coca-Cola India spokesman.
(Economics Times & http://articles.economictimes.indiatimes.com/2010-0617/news/27581172_1_coca-cola-india-soft-drink-nadia-chauhan)
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After facing lot of problem & lots of criticism Coca-Cola has decided that the
problems in India are a public relations problem, and that they will "spin" them away. Coca-
Cola has hired a public relations firm, Perfect Relations, to develop a new image for them in
India. The head of communications for Coca-Cola Asia has been moved to India from Hong
Kong to try to deal, in a PR way, with the growing resistance.
Threats
Protest against Coca Cola in India
Government Regulation
Growing "health-conscience" in Society
Continuous competition with Pepsi
New entry of competitors
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PEST ANALYSIS
P: Political change, from one party to another in control- for example the rise in
private healthcare and privatizations under Conservative governments.
Non-alcoholic beverages fall within the food category under the FDA. The
government plays a role within the operation of manufacturing these products in terms
of regulations. There are potential fines set by the government on companies if they
do not meet a standard of laws.
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The following are some of the factors that could cause Coca-Cola company's actual
results to differ materially from the expected results described in their underlying
company's forward statement:-
Their ability to penetrate developing and emerging markets, which also depends on
economic and political conditions, and how well they are able to acquire or form strategic
business alliances with local bottlers and make necessary infrastructure enhancements to
production facilities, distribution networks, sales equipment and technology.
Political factors may also include goods and services which the government wants to
provide or be provided and those that the government does not want to be provided.
Furthermore, governments have great influence on the health, education, and
infrastructure of a nation.
Marketers need to consider the state of a trading economy in the short and long-terms.
This is especially true when planning for international marketing. You need to look at:
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1. Interest rates.
3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita,
and so on.
young people has given coca cola whole new segment to target.
Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition.
There is a large population of the age range known as the baby boomers. Since many are
reaching an older age in life they are becoming more concerned with increasing their
longevity. This will continue to affect the non-alcoholic beverage industry by increasing the
demand overall and in the healthier beverages.
Consumption of soft drinks has long been inversely correlated with a person's age. In
other words, as you age you drink fewer soft drinks, while younger people drink most soft
drinks. The average age of the populations in the United States and most European countries
is increasing. Outside the United States and Europe, Coke management observes: "The world
is getting younger and young people are the most enthusiastic purchasers of consumer
products".
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T : Technological change - creates opportunities for new products and product
Some factors that cause company's actual results to differ materially from the
expected results are as follows:
Introduction of cans and plastic bottles have increased sales for Coca-Cola as these
are easier to carry and you can bin them once they are used.
As the technology is getting advanced there has been introduction of new machineries
all the time. Due to introduction of this machineries the production of the Coca-Cola
company has increased tremendously then it was few years ago
CCE has six factories in Britain which use the most stat-of the-art drinks technology
to ensure top product quality and speedy delivery. The Wakefield factory has the
technology to produce cans of Coca-Cola faster than bullets from a machine gun.
Even at Coca Cola’s Goblej Plant is able produce 600 bottles per minute.
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Porter’s Five Forces Model of Coca Cola
Porter’s five forces model is a framework for the industry analysis and development
of business strategy. Three of Porter’s five forces refers to rivalry from
external/outside sources such as micro environment, macro environment and rest are
internal threats. It draws ahead Industrial Organization economics to develop five
forces that conclude the competitive intensity and consequently attractiveness of a
market place or industry. Attractiveness in this framework refers to the generally
overall industry profitability. An "unattractiveness" in industry is one in which the
mixture of these five forces proceed to constrain behind overall profitability. An
extremely unattractive industry would be one moving toward "pure competition", in
which existing profits for all companies are moving down to zero.
There is need of huge capital not just too start this business but to run also.
There is need of distribution channel, Technology etc. hence threat of entry is
very low. There are various factor due to which threat of entry is Low.
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Soft drink industry needs huge amount of money to spend on advertisement and
marketing. This makes it exceptionally hard for a new competitor to struggle with the
current market and expand visibility.
Coke is been investing huge amount on advertisement and marketing throughout their
existence. This has resulted in higher brand equity and strong loyal customers’ base
all over the globe. Therefore, it becomes nearly unfeasible for a new comer to
counterpart this level in soft drink industry.
Retail Distribution
This industry provides significant margins to retailers. For example, some retailers get
15-20% while others enjoy 20-30% margins. These margins are reasonably enough
for retailers to entertain the existing players. This makes it very difficult for new
players to persuade retailers to carry their new products or substitute products for
Coke and Pepsi.
Fear of Retaliation
It is very difficult to enter into a market place where already well-established players
are present such as Coke and Pepsi in this industry. So these players will not allow
any new entrants to easily enter the market. They will give tough time to new entrants
which could result into price wars, new product line, etc in order to influences the
new comers.
Bottling Network
In this industry manufacturers have franchise contracts with their presented bottler’s
that have privileges in a definite geographic area in eternity such as both Pepsi and
Coke have contracts with their presented bottler’s. These contracts forbid bottler’s
from taking on new competing brands for similar products. Latest consolidation
between the bottler’s and the backward integration with Coke buying considerable
numbers of bottling firms, it makes very difficult for new player to contract with
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bottler’s agreeable to distribute their brands. The alternative is that new entrances
build their bottling plants, which will need intense capital and exertion.
The industry is almost dominated by the Coke and Pepsi. This industry is well known
as a Duopoly with Coke and Pepsi as the companies competing. These both players
have the majority of the market share and rest of the players have very low market
share. Otherwise; competition is comparatively low to result any turmoil of industry
structure. Coke and Pepsi primarily are competing on advertising and differentiation
rather than on pricing. This resulted in higher profits and disallowed a decline in
profits. Pricing war is nevertheless experienced in their global expansion strategies.
Composition of Competitors
Except the Pepsi other competitors are of unequal size especially in local markets.
Coke and Pepsi both players have the majority of the market share and rest of the
players have very low market share.
Scope of Competition
Scope of competition in this industry is generally global; Coke and Pepsi are
approximately presents in 200 countries.
The soft drinks business will not see growth in near future, with the smoothie and
bottled water sectors mainly hit by a decline in 2008, and across all sectors volume
declined by 1.1 percent. But recently last 4 quarter in India has been great for Coca
Cola were they have sales growth of double digit.
This industry needs huge manufacturing plants and contracts with bottling network
companies. These contracts make sure that bottler’s must have standard
manufacturing plant; these plants need huge capital and exertion.
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Degree of differentiation
Marketing and Product differentiation have become more significant. Coke and Pepsi
mainly are competing on advertising and differentiation rather than on pricing. Coke
has diverse advertisement campaigns according to conditions. Coca-Cola is
recognized as the best-known brand name in the globe. More prominently, its
consumers would not do without it, and have established a loyalty.
Strategic Stake
Coke’s core operation is the manufacturing and distribution both for itself and beneath
franchise, of non-alcoholic beverages and related products. Because of the strategic
stake the main brand of the Coke has been around for a lot of years.
This industry is enriched with enormous statistics of substitutes such as: water, tea,
beer, juices, coffee, etc presented to the end-consumers. But all the suppliers of these
substitutes need massive advertising, brand equity, brand loyalty and making sure that
their brands are effortlessly accessible to the consumers. Most of the substitutes
cannot counterpart the existing player’s offers or diversify business by offering new
product lines of the substitute products to safeguard themselves from rivalry. But still
threat from substitute is high.
Soft drink industry companies spend huge amount of money on advertisement and
marketing to differentiate their products from others and also create brand equity,
base of loyal customers and increase visibility.
Switching Cost
Switching cost of the substitute products is very low so consumers can easily shift
towards the substitute products.
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Perceived price/ value
Perceived price/value in this industry is very low because all products are
comparatively same and are only differentiated by promotional activities.
The most important buyers for the Soft Drink industry are fast food fountain, vending,
convenience stores, food stores, restaurants, college canteens and others in the
categorize of market share. The profitability/revenue in each of these segments
obviously demonstrates the bargaining power of the buyers to pay different prices.
Coke mainly regard this segment as “Paid Sampling” due to small margins. This
division of buyer’s is the slightest profitable because of the high bargaining power of
the buyers. The bargaining power of the buyers is high because they purchase in
bulks.
Vending Machines
Convenience Stores
This segment is tremendously fragmented and has no bargaining power due to which
it has to pay superior prices.
Food Stores
This segment of buyers’ is fairly merged with few local supermarkets and numerous
chain stores. Since this segment presents best shelf space it demands lower prices.
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The bargaining power of Suppliers
Most of the raw materials desirable to manufacture soft drink are basic merchandise
such as flavor, color, caffeine, sugar, and packaging etc. The suppliers of these
commodities have no bargaining power over the pricing due to which the suppliers in
soft drink industry are relatively weak.
Raw materials for soft drink are basic commodities which are easily available to every
producer and have low cost which makes no difference for any supplier.
Switching cost
All the raw material ingredients are basic merchandize and easily accessible to
manufacturers. Switching cost to the suppliers is very low; manufactures can easily
shift towards the other suppliers.
Availability of substitutes
Soft drink products have standard raw material ingredients which could not have any
alternatives or used instead of the actual ingredients.
Threat of forward integration is very low in this industry because manufacturers of the
soft drinks need huge manufacturing plants, bottling network, strong distribution
network and best shelf space. Suppliers could not afford such kind of well-
established network.
Soft drink industry is very important to the suppliers because buyers purchase larger
amount of raw material. This encourages suppliers to remain in good contact with
buyers.
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Product of the suppliers is very important input for the manufacturers in this industry
because these products do not have any substitute.
CHAPTER 7
RESEARCHFINDINGS
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Research findings
The observation was that Coca Cola has tough competition from Pepsi.
It seems that in past few Years Coca Cola has become more aggressive & there
launching new product but also getting very aggressive in Promotion.
In the city like Ahmedabad were consumers are mostly modern, young, adventurous,
ready to spend quite sum of amount and full of excitement People company has got
big market.
Whenever there is any occasion where the consumer wants to buy soft drink the first
name comes in his mind is Thums up & when there is female she would opt for Coca
Cola or Maaza.
Company is also keen on launching Non-Carbonated beverages.
Now people are more interested in buying Pet bottle instead of RGB bottles.
There is lack of distribution services between Distributers & A.M.C. (Area Market
Contractor)
A.M.C. are not providing continuous services to Rural Market.
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CHAPTER 7
SUGGESTIONS
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&
RECOMMENDATION
SUGGESTIONS
During This marketing Research I have got all these suggestion for the Coca Cola.
Taking the above analysis into consideration, the following points can be regarded for
further marketing of the product:
Many Retailers feel that Coca Cola is competitive than other bread.
Company should give emphasize on Expected profit margin of Retailers.
Company can also give more preference to PET bottles at Grocery stores by
that company can increase their availability & for that they have to come with
different scheme for them
Can create good relationship with the retailers in the city that will gain the
company tothe greater extent.
There are lot of Problem in distribution system. Spacially in rural market
M.D.’s are not intrested in penetrating new product in market
M.D. are more intresed in achiving daily target not focussed in visiting every
outlets.
Due to gap in Distribution channel there are many people who opt for Pepsi
Product.
Advertisements should target the entire family, mainly because it has been
observed that irrespective of age and gender, more than 75% of the people
have liked the product and look forward to buy it again. Advertisements
should highlight the main features of the product that is the existence of pulp
(which is already made prominent in Advertisements); it should lay emphasis
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on the health and nutrition value of the product and also on the fact that it is
as good as fresh fruit juice.
At Modern Trade Outlets, where shoppers buy in bulk, FFT Powder could be
given away free for sampling & can sold at same place, if the customer buys
goods worth more than a certain price line. It could be introduced even at
Reliance Mart, Big Bazaar etc.
New flavours of FFT Powder can be introduced into the market as early as
possible because many retailers & customer buying were eager to know if the
drink would come in more flavors and another many of the consumers did
not like Orange flavour so they were anticipating the probable launch of other
flavours.
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CHAPTER 8
CONCLUSIONS
Conclusions
Soft drink industry is growing day by day. Its most of sales comes in
summers but still number of sales in other sessions is also growing. After
thorough study, we come to the conclusion that the marketing strategy of Coca
Cola is working for them and the product is gaining popularity among youth
day by day. But for growth of Coke there is need of continuous good economic
condition of the nation. The more increase in peoples disposable income coke
will benefit.
Despite of being in news due to much rough reason coke is more involve
in PR activity. The Coca-Cola Company has always believed that education is a
powerful force in improving the quality of life and creating opportunity for
people and their families around the world.
Coca-Cola has always had a close consumer and supplier relationship
with its customers. It’s entertaining and colorful advertisements have always
and will always rock the media. Indian rock stars, sportsmen, and actors have
played a very vital role in making Coca-Cola such a popular beverage.
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BIBLIOGRAPHY
BOOK:
Web sites:
www.cocacolaindia.com
www.scribd.com
www.cocacola.com
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Annexure
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Prepared by:
Gaurav Modi Pratik Patel
Gaurang Chavda Vikas Shah
Hardik Rajgor Yash Acharya
Nilkanth Deshpande
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S
egmentation
Whole Ahmedabad is been segmented as per area in 11 clusters.
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These clusters are also segmented by the income level of the people.
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Master Table
In
eo
c
Cluster wise Summery
Cluster 1- Total Visit Total NC Productivity Shipper Class Area
Naroda in % Sold Type
Krushan Nagar 31 7 22 1.75 Middle Residential
Nana Chiloda- 49 19 38 15 Lower Industrial
Nobal nagar
Naroda 24 8 33 8 Lower Residential
Kubernagar 30 16 53 6 Lower Residential
Total 134 50 30 30.75
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Vastral, 181 50 27 32 Middle Residential
Amraivad Industrial
i
Odhav, 143 44 30 21 Lower Residential
Virat
Nagar
Total 324 94 29 53
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Dariapur Residential
Delhi Residential
Darwaja
Kalupur Commercial
Shahibag 93 46 49 14.25 Middle Residential
Road
Relief Road Commercial
Raipur Residential
Manekchow Commercial
k
Jamalpur 32 10 31 2.75 Lower Class Residential
Total 125 56 44 17
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Analysis Through Charts
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Total NC Income level Productivity
Higher Class of N.C.
Lower Class 6% Conversion
21%
Higher Class 55.4%
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Shipper Sold Level of Income Shipper
Sold
Lower Higher
21% 5% Higher 20.25
Middle 256
Lower 73.75
Total 350
Middle
74%
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Class wise Summary
Class Total Visit Total Nc Productivity Shipper Sold Drop Size
High 74 41 55 20.25 24
Middle 1388 525 38 256 23
Low 409 151 37 73.75 23
(1)
Higher Class:
Higher income level of people
Good Infrastructure
Higher standard of living
Productivity in Higher Class Area is Higher compare to other Class Due to following reasons:
Mentality of people to purchase brand & standard product.
People don't think before buying 5 Rs. thing.
Visits are less in Higher Class area because in Higher Class area Mall Culture is there.So,
numbers of retail shops are less compare to other areas. Because income level of people is
higher they can afford the product & also they are willing to purchase standard products
than the local brands.
Productivity in Middle Class area is less compare to Higher Class area due to following
reasons:
Retailers are not willing to keep newly introduced product.
Availability of chipper similar products.
Visits are more in Middle class area because numbers of stores available are more in
numbers. But productivity is less because income level of people is less compare to Higher
class area people.
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Productivity in Lower Class area is less compare to Higher Class area due to following
reasons:
Lower Class people have less income. Fanta Fun Taste Powder has M.R.P of 5 Rs.Which is
high compare to local brands which have M.R.P of 1,2 or 3 Rs. So people prefer local brands
which are less costly.
Competitors' Analysis
Tang is a powdered soft drink, the makers call it a blend of nutrition with
convenience, offering families around the globe, a great-tasting beverage. They
claim it provides a nutritious and real fruit-flavoured drink. It is available in
different types of packaging.Tang was originally marketed as an instant
breakfast drink and touted as the drink that was developed for astronauts. And
this is the reason why; Tang is fortified with a number of vitamins. In 2003, the
US-based Kraft Foods had entered India in a joint venture with Chennai-based
Kothari group but left very soon. Of course, since then Tang has been available
in India — though in smaller volumes, mainly brought in by importers.
However, its $18.9 billion takeover of British confectionary giant Cadbury early
this year has given Kraft Foods a chance of trying its luck again by leveraging on
Cadbury India's strong presence in the country.
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Fanta Tang Rasna Fruit plus
Vitamins B3,B6,B9,B12 A,B,C A,B3,B6,C
Flavour Orange Many Many
Water(m.l.) 200 180 180
BBD 9 month 15 month 18 month
M.R.P. 5 4 3
Margin(%) 12.8 to 24.6 20 to 25 10 to 18
Weight(gms) 23.5 19 23
Calcium Yes Yes Yes
Energy 90Kcal 75Kcal 70Kcl
Queries of Retailers
Medical
1) Less profit margin.
2) Different packing size
3) What is the expiry of product?
4) Is product not available in sugar free mode?
5) Is other flavour available?
Grocery
1) Is this product has the same Fanta taste?
2) Why price of product is not printed on package?
3) Is there any advertisement on national T.V.?
4) Any other flavour? Why only orange flavour? Is other brand product is available such as
thums up, Coca-cola.
Convenience
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1) Is this product has the same Fanta taste?
2) Any other flavour? Why only orange flavour? Is other brand product is available such as
thums up, Coca-cola.
3)Is there any advertisement on national T.V.?
4)Why price of product is not printed on package?
=
Inner Shipper 12 sachet
N.C. Activation
Grocery Outlets
Before After
Before After
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Before After
Convenience Centre
Before After
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Medical Stores
Before After
Before After
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Shop Front Gate
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Helpline Number
Questionnaire
Name of outlet:
Name of owner:
VPO class:
1. Please Name some of the products of Coca Cola Company.
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Thums up
Coke
Fanta
Limca
Sprite
Maaza
3. Does the preseller come to your outlet & clean company’s cooler & arrange the
product properly?
Yes
No
4. Do you think that arranging the product as per RED, is useful for your sale?
Yes
No
5. Do you believe that posters, banners, fledges & other promotional equipment affect
your sale?
Yes
No
Why?
6. Have you ever been informed by preseller about RED (Right Execution Daily)norms
for arrangements of products purity & availability of each SKU’s?
Yes
No
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7. What do u think consumers give weightage to brand or not?
Yes
No
8. Will you prefer Fanta fun taste powder as a RTD(Ready to drink)& recommend to
other people?
Definitely prefer
Prefer
Neutral
Not prefer
Definitely not prefer
9. Can you recall the current song of Fanta advt.? If yes then complete the below
sentence.
Nazarfiki
10. Are you satisfied with presell integration model in coca cola?
Yes
No
Stock problems
Billing problems
Wastage of time
Problems in returning empties
Other
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12. Give points from 1 to 12 to the brands mentioned below, according to your liking.
(1 is most liked & 12 is unlike)
Yes
No
15. There are no products in Non alcoholic beverage section that can be compared with
thums up.
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Strongly agree Agree Neutral Disagree Strongly disagree
Thank you
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