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Marketing strategy & survey of right execution for Coca-Cola

1. INTRODUCTION
1.1 General Overview of Indian Industry
The Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods are those products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. Items in this category include all consumables (other than groceries / pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. A major portion of the monthly budget of each household is reserved for FMCGT products. The volume of money circulated in the economy against FMCG products is very high, as the number of products the consumer use is very high. Competition in the FMCT sector is very high resulting in high pressure on margins. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs. 56,500 crores in 2005 to Rs. 92,100 crores in 2010. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to the FMCG sector in India to squeeze the best out of the untapped market. An average Indian spends around 40 per cent of his income on along with the large population base is another factor that makes India one of the largest FMCG markets.

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Marketing strategy & survey of right execution for Coca-Cola


The consumer goods sector can be broadly divided into the following categories: Household care Fabric wash (laundry soaps and synthetic detergents); household cleaners (dish / utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents metal polish and furniture polish). Food & Beverages Health beverages; soft drinks; staples / cereals; Beverages bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; soft drinks; processed fruits, vegetables; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc. Personal Care Oral care, hair care, skin care, personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; feminine hygiene; paper products. Since this particular project deals with the horizontal expansion of Coca-Cola, we are now going to focus deeply on the beverage industry in India, with special focus on the Coca-Cola Company. The beverage industry is India is vast, and there are various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: Alcoholic, non-alcoholic & sports beverages. Natural & synthetic beverages. In-home consumption & out of home on premise consumption. Age wise segmentation i.e. beverages for kids, for adults and for senior citizens. Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption. Most multinationals that came to India after 1991 targeted Indias urban middle class of earn revenues. Gradually, as appetites of this market of 300-400 million got satisfied, they woke up to the potential of the other market of more than 1 billion people. According to Industry estimates, rural India accounts for 74 percent of Indias

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Marketing strategy & survey of right execution for Coca-Cola


population and 58 percent of Indias disposable income. Rural India is also characterized by growing affluence: agricultural output increasing to nearly 215 million tons in 2004 compared to 176 million tons in 1991. According to the data compiled by the National Council of Applied Economic Research, rural India now accounts for 70 percent of toilet soap users, and 38 percent of twowheeler purchasers come from rural India. Atlanta-based Coca-Cola Company is one of the first global majors to have spotted the potential spin-offs from the countrys rural markets. It has perfected a unique supply chain to cater to Indias vast rural hinterland. The results are working, and Coca-Cola Indias rural penetration increased from 13 percent in 2001 to 25 percent in mid-2003. Over this period, the number of companys rural distributors increased from less than 4000 to 5500. Colas, being fast moving consumer good, hold enormous potential for a manufacturer like the Coca-Cola Company. The biggest reason for this is the low per capita consumption, which Coke estimates at 3.7 bottles per person per year compared to 10 bottles per person per year for all India. Moreover, drinkers constitute only 18 percent of the population, as against 28 percent for all India. Breaking into this market required innovative thinking and a new strategy. Rural India meant reaching 6,27,000 villages spread over 32,87,263 square kms; it meant getting distributors to travel 200 kms to reach five shops with drop sizes of less than a case. Most of all, however, it implied he challenges of catering to the rural retailer a new kind of customer for Coca-cola. A typical village retails environment consists of 4-5 kirana shops. The size of such stores varies depending on the size of the population density of the village which it serves.

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Marketing strategy & survey of right execution for Coca-Cola


Purchase patterns also vary frequently due to daily wage earnings. There are spikes in sales during festivals, in the wedding season and during post harvest, while there are troughs during other periods.

To reach out to rural India, Coke started out by drawing a hit list of high potential villages from various districts. Coca-Cola also concentrated on 47,000 (weekly markets) & 25,000 (fairs) held annually in various parts of the country. Coca-Cola now claims that 80 percent of its new drinkers come from rural India, where per capita consumption has nearly doubled between 2002 and mid 2003. By 2003, the rural market accounted for nearly 30 percent of Cokes volumes, at 36 percent. The rural market also grew faster; between 2002 and mid-2003; Cokes urban market grew 24 percent while the rural market grew 37 percent. Coca-Colas endless endeavor to capture the Indian market (both urban as well as rural) has continued till date with its Horizontal Expansion Plan. the Distribution Zones of Bareilly. (Hindustan distributor) I was given a target of fill up of EDS and I was told to in find out outlets to open new outlets for the Coca-Cola Company. I traveled this distance on foot with the sole purpose of targeting not only the outlets in the prime locations, but also those outlets which have the right potential to attract customers and the right kind of space to accommodate the chilling equipment as well as the products. In my summer training period which lasted for four weeks, I had worked upon the Marketing strategy in

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Marketing strategy & survey of right execution for Coca-Cola 1.2 Purpose of the Study
Consumption of soft drinks has increased tremendously in India. Every age of group like it, now a days it become a household necessary item. In field of marketing many kind of surveys are conducted by coca-cola team time to time. 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 BAREILLY market? This work study provides extensive information about the position of companys brand in Bareilly.

1.3 Scope of the Study


This project work is helpful in making a deeper analysis of the opportunity mapping of Coca-Cola & the competition mapping in Bareilly. This project work will be helpful in conducting higher studies regarding the overall satisfaction of Coca-Cola from the dealers perspective. This report work will help the company to devise further marketing & sales strategies.

1.4 Objective of the Study


To critical evaluation of marketing strategies adopted by Coca-Cola. To study the promotional strategies adopted by Coca-Cola. To study the reason of preferences for chosen a particular brand.

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1.5 GROWTH AND PRESENT STATUS OF THE INDUSTRY


The total value of the soft drink industry was $48 billion in 1990s. The average in the states 48 gallons per year. Industry analyst contended that the soft drink industry had plateau, and that total consumption was unlikely to increase significantly in the near future. As a consequence, the cola wars were moving to international markets. Although, after the mid 90s both company found a different strategy fueled by the twin engines of innovation and diversity. Consumers are drinking a widening assortment of beverages. There is increasing demand for health and nutrition drinks

(juices and juice-based products), rejuvenation drinks (tea and coffee), and replenishment drinks (sports drinks and water). Coke, the worlds largest soft drink company with a 45% share of the worldwide soft drink market, earned 80% of its profits outside of the United States in 1993. In according to this, Pepsi, with only 15% of its beverage operating profits coming from overseas was using guerilla warfare to attack Coke in selected international markets. Americans consumed 23 gallons of soft drinks a year in 1970 compared to 48 gallons in 1993. This growth was fueled by increasing availability and affordability of soft drinks in the marketplace, as well as the introduction and growth of diet soft drinks. And then become stabile. For improve profits on the saturated market was possible by cost reduction, new products but not cannibalize your products, and better value chain that returns you as a competitive advantage. It was not easy. There were many alternative to soft drinks ; coffee, beer, milk, tea, bottled water, juices, powdered drinks, wine, distilled spirits, and tap water. The 1980s Pepsi and

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Coke transformed their businesses. These consumer-oriented businesses experienced changes in the forces impacting key strategy areas: investment; distribution channels; trade and manufacturer relations; shareholder pressure; marketing and promotional programme design; new competitors and proliferation of products across their traditional categories, etc. Using 1978 as a base year, the Consumer Price Index (CPI) grew at an average rate of 5.9%, compared with soft drink price growth 3.8%. Consumer demand appeared to be sensitive to price increases. The cola segment of the soft drink industry held the dominant (68%) share of the market in 1992, followed by lemon/lime with 12%, pepper flavor 7%, orange 3%, root beer 2%, and others 8%. Coke and Pepsi had a combined 73% of the soft drink market.

1.6 FUTURE OF THE INDUSTRY


Consumers are drinking a widening assortment of beverages. There is increasing demand for health and nutrition drinks (juices and juice-based products), rejuvenation drinks (tea and coffee), and replenishment drinks (sports drinks and water). Soft drink companies intend to fulfill the needs of consumers for every occasion at every stage of their lives. Both Pepsi and Coca Cola pronounced their self a total beverage company. More and more, people are turning to noncarbonated beverages to give them vigor and energy. Whether its for a lift during the day or for enjoyment after the workday ends, consumers are embracing ready-to-drink teas and coffees. With every new discovery of the health benefits of teas, demand increases even more.

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Marketing strategy & survey of right execution for Coca-Cola


The basic product of soft drink companies cola. Today, cola is the most consumed beverage, still in the world. Even as lifestyles change all over the world, there is one beverage that remains the essential element for all people water. Soft Drink Companies are also focusing on their portfolio of replenishment beverages to meet differing local tastes for water and to provide sports drinks that quench the thirst of people with active lifestyles.

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Marketing strategy & survey of right execution for Coca-Cola

2. DESIGN OF THE STUDY


2.1 TITLE OF THE STUDY
The study has been conducted under the title of Marketing strategy & survey of right execution for Coca-Cola.

2.2 STATEMENT OF THE PROBLEM


The type of research that I have conducted while undergoing this project is Exploratory Research. The main purpose for taking up such a type of research work is to exploring the strategies of Coca-Cola in Bareilly. In this process, the market potential for CocaCola has been studied. I have conducted a survey to carry out such a type of research. This research investigate any problem which suitable hypothesis this is also clarifying few any doubt and also helps for further research for developing a hypothesis.

2.3 OBJECTIVES OF THE STUDY


This project takes a look that what type of marketing strategy adopted by coke. The two major global players i.e. Pepsi and Coca-Cola dominate the soft drinks industry in India. The objectives of the project are to study the importance of advertising and sales promotion schemes in the soft drinks industry. The project takes a view on: To critical evaluation of marketing strategies adopted by Coca-Cola. To study the promotional strategies adopted by Coca-Cola. To study the reason of preferences for chosen a particular brand.

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Marketing strategy & survey of right execution for Coca-Cola 2.4 LIMITATIONS OF THE STUDY
Considering the fact that nothing is perfect in the world. Every individual bound to make mistake at some points. Its genuine. The study was restricted to Bareilly only, so it was difficult to generalize the interpretations would make out the findings. The respondents may be based or influence by other factor. Information collection took 30 days. A busy schedule of dealers/retailers also makes the collection of information very difficult one. Non-co-operative behavior of respondent was a big problem in this survey. White studying the report the above fact should be taken into consideration. The minor concept and techniques at the marketing management are used significant in the project concern. The research was dependant on the information provided by the respondents (retailers). It may insufficient. As associated with every project, time and money were the major limitations with project.

Resources for collection of data are less. Time period for data collection is short Difficult to get response from customer. Experience in field of research is difficult job.

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2.5 RESEARCH DESIGN


The method adopted for research is Experience Survey i.e. survey of people who have practical experience of soft drinks in Bareilly, such a research design the decision regarding what, where, whom, how much, by what means are concerned. It is the blue print for the research undertaken.

2.6 SCOPE OF THE STUDY


The scope of this study is kept within the control of individual researcher.

2.7 Data Collection Source and Methods


Primary Data I have collected the primary data through face-to-face interviews of the dealers using EDS. Secondary Data I have collected the secondary data from the manuals of the Coca-Cola Industry and Internet.

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Marketing strategy & survey of right execution for Coca-Cola 2.8 Sampling Details
Sampling Frame I have conducted the survey by interacting with the dealers of Brindavan Beverages distributor of Bareilly; the first one being the entire Old & new Bareilly, Batler, ayun Khan, Bara Bazaar, Prem Nagar, Housing Board, Rajendra nagar market, Railway Station, and old & new Bus station. Sampling Unit I have taken three types of dealers in order to conduct my survey; the first category being exclusively Coca-Cola dealers, the second category being the exclusively Pepsi dealers, the third category being the mixed dealers (of both Coca-Cola & Pepsi). The survey has been conducted in three different types of outlets, the first being convenience outlets, the second being grocery outlets, the third being eating & drinking outlets. Sampling Element The sampling elements have been taken from the shops visited during the on job Training. Sampling Procedure The sampling method adopted is probability sampling in which stratified random sampling has been done in Bareilly. A stratified sample is constructed by classifying the dealers population in the above two strata based on the parameters as mentioned in the segmentation model of the company. The selection of elements is made separately from four set of channel segments Convenience, Grocery, Eating & Drinking. The three dealer types under three channels are dealers of the exclusively Coca-Cola outlets, dealers of the exclusively Pepsi outlets and dealers of the mixed (both CocaCola and Pepsi) outlets.

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Sample Size The sample size that I have chosen to conduct the survey is 296, out of which 265 samples are dealers of exclusively Coca-cola, 3 samples are dealers of exclusively Pepsi, and the remaining 28 samples are of mixed dealers (of both Coca-cola & Pepsi)

2.9 METHODOLOGICAL
The project will involve a study of Advertisements and sales promotions schemes of the soft drinks industry. The study will include following parameters. Top of the mind recall. Brand awareness about an advertisement. The use of celebrity in a particular campaign and their impact.

The mode of the data collection would include both primary and secondary. The impact of sale promotion schemes would measure on: Their visibility. Recall value of a post schemes. Acceptability of the current scheme by the customers and sales force.

The project work started with the collection of secondary data from various sources such as newspaper, magazines, journals and web sites. Along side two questionnaires were also prepared one aimed at consumers and the other aimed at retailers together primary data, regarding the influence and effect of Advertising and sales promotion schemes on the sales of soft drinks (Carbonated Soft drinks).

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3. COMPANY PROFILE
3.1 YEAR OF ESTABLISHMENT: - Coca Cola Company is one of the United
States based company founded in the year 1886 was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia.. The Coca Cola got approval from the Government of India in July 1996.

3.2 HEAD OFFICE:- 1 Coca-Cola Plaza


Atlanta, GA 30313-2499 Phone:404-676-2121.

3.3 REGISTERED OFFICE:- 10th , 11th main, vasant Nager ,Bangalore 3.4 MANUFACTRED BY:- Brindavan Beverages Pvt, LTD, B-54-57, Parshakhera
Industrial Estate, Bareilly-243502 (U.P)

3.5 History of the Coca Cola Company


The product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Dr. John Stith Pemberton, a local pharmacist, produced the syrup for Coca Cola, and carried a jug of the new product down the street to Jacobs Pharmacy, where it was sampled, pronounced excellent and placed on sale for five cents a glass as a soda fountain drink. Carbonated water was teamed with the new syrup to produce a drink that was at once Delicious and Refreshing, a theme that continues to echo today Thinking that the wherever Coca-Cola is enjoyed.

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Dr. John Stith Pemberton

Thinking that the two Cs would look well in advertising, Dr. Pembertons partner and bookkeeper, Frank M. Robinson, suggested the name and penned the now famous trademark Coca-Cola in his unique script. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oilcloth signs reading Coca-Cola appeared on store awnings, with the suggestion Drink added to inform passersby that the new beverage was for soda fountain refreshment. During the first year, sales averaged a modest nine drinks per day.

Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to an Atlantan businessman Asa G. Candler who proceeded to buy additional rights and acquire complete control. The trademark Coca-Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. (Registration has been renewed periodically). That same year the first dividend was paid; at $20 per share, it amounted to 20 percent of the book value of a share of stock. A firm believer in advertising, Mr. Candler expanded on Dr. Pembertons marketing efforts, distributing thousands of coupons for a complimentary glass of Coca-Cola. He promoted the product incessantly, distributing souvenir fans, calendars, clocks, urns and countless novelties, all depicting the trademark.

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In 1919, a group of investors headed by Ernest Woodruff and W.C. Bradley purchased the Coca-Cola Company for $25 million. The new president put uncommon emphasis on product quality. Mr. Woodruff established a Quality Drink campaign using a staff of highly trained service people to encourage and assist fountain outlets in aggressively selling and correctly serving Coca-Cola. And with the assistance of leading bottlers, his management established quality standards for every phase of the bottling operation. Mr. Woodruff saw vast potential for the bottle business, so advertising and marketing support was substantially increased. By the end of 1928, Coca-Cola sales in bottles had for the first time exceeded fountain sales. Robert Woodruff leadership through the years took the Coca-Cola business to unrivaled heights of commercial success. Working with talented associates, he established the global momentum that eventually carried CocaCola to every corner of the world. Coca-Cola in India (Brindavan Beverages Coca Cola Pvt. Ltd.) Coca-Cola the corporation nourishing the global community with the worlds largest selling soft drink concentrates since 1886, was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the government and reduce its quality stake as required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. Coca Cola then returned to India on 26 th October, 1993 after a 16 year hiatus, with its launch in Agra, giving a new Thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nations top soft-drink brand and bottling network. Ever since, Coca-Cola has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels. Coca-Cola India is among the countrys top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$ 100 billion in 2003 for its operations. The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs.

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Marketing strategy & survey of right execution for Coca-Cola 3.6 Mission of Coca Cola
To refresh the world in mind, body and spirit. To make a difference in its product. To inspire moments of optimism through its brand and difference everywhere it engage. To do everything differs. Its product in each hand. Being a global leader in beverage.

3.7 Vision of Coca-Cola


PROFIT: Maximize the return of share holder. PEOPLE: Establish a great place to work where people are inspired to the best they can do. PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and safely peoples need and desire. PARTNERS: Nurturing a winning network of partners and building a mutual loyalty. PLANET: Being a responsible global citizen that makes a difference.

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3.8 ORIGIN OF THE ORGANIZATION


Coca-Cola is a carbonated soft drink sold in almost all the countries of the world. CocaCola is manufactured by The Coca-Cola Company and is often referred to as Coke. Coke is one of the most recognizable brands in the world. Coca-Cola was invented by John Stith Pemberton in Covington, Georgia in May 1886. The beverage was initially a coca wine and was called Pembertons French

Wine Coca. After Atlanta and Fulton County passed Prohibition legislation, Pemberton made a carbonated, non-alcoholic version of French Wine Cola and called it Coca-Cola. Coca leaves from South America were added as a stimulant to the beverage along .with kola nuts which were added to give flavor to the drink. Due to them the name Coca-Cola was given to the beverage. Asa Candler, who was also a pharmacist of Atlanta, bought the formula for Coca-Cola in 1887 from John Pemberton for $2,300. Asa Candler marketed Coke aggressively and was

responsible

of

the

dominance

of

the

world

soft

drink

market

by

Coke.

During Pembertons time five ounces of coca leaf were added per gallon of the syrup which constituted a significant dose. Candler claimed in 1891 that he had altered the formula of Coca-Cola and it now contained only a tenth of amount of coca leaves. CocaCola also contained nine milligrams of cocaine per glass till 1904, when they started using spent leaves instead of fresh leaves.

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3.9 GROWTH AND DEVELOPMENT OF THE ORGANIZATION


The Company's presence worldwide was growing rapidly, and year after year, CocaCola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more. In 1978, The Coca-Cola Company was selected as the only Company allowed selling packaged cold drinks in the People's Republic of China. The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola

Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the Company with a strategy he called "intelligent risk taking." One of Goizueta's other initiatives, in 1985, was the release of a new taste for CocaCola, the first change in formulation in 99 years. In taste tests, people loved the new formula, commonly called new Coke. In the real world, they had a deep emotional attachment to the original, and they begged and pleaded to get it back. Critics called it the biggest marketing blunder ever. But the Company listened, and the original formula was returned to the market as Coca-Cola classic, and the product began to increase its lead over the competition -- a lead that continues to this day. The 1990s were a time of continued growth for The Coca-Cola Company. The Company's long association with sports was strengthened during this decade, with

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ongoing support of the Olympic Games, FIFA World Cup football (soccer), Rugby

World Cup and the National Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR racing, connecting the brand with one of the world's fastest growing and most popular spectator sports. New beverages joined the Company's line-up, including Powerade sports drink, Qoo children's fruit drink and Dasani bottled water. The Company's family of brands further expanded through acquisitions, including Limca, Maaza and Thums Up in India, Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury Schweppes' beverage brands in more than 120 countries around the world. By 1997, the Company already sold 1 billion servings of its products every day, yet knew that opportunity for growth was still around every corner. In 1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now well into its second century, the Company's goal is to provide magic every time

someone drinks one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you can still find Coca-Cola. From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to the worlds most ubiquitous brand, with more than 1.4 billion beverage servings sold each day.

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3.10 PRESENT STATUS OF THE ORGANIZATION


Asia will be the biggest driver of Coca-Colas growth over the next 10 years, the head of the worlds biggest beverage company said, adding that the company had lost out by not investing enough in the region in the past. Asia is at the core, Neville Isdell, the chairman and chief executive of the Atlanta, Georgia-based Coca-Cola Co., said. The company said its worldwide unit-case volume sales grew 6%the highest rate since 2002. Isdell said Coca-Cola has invested more than $1 billion (Rs4, 100 crores) over the last 12 months in Asia, particularly in the Philippines, China, India and Indonesia. Coca-Cola Co slightly increased its lead over rival Pepsi-Cola Co in 2002, thanks to the successful launch of Vanilla Coke and the growth of Diet Coke, according to US soft drink industry rankings. Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 per cent, according to beverage digest-/Maxwell, a New York-based industry newsletter and data service said. The company captured a larger share of the market even though its coke classic brand fell 0.6 percentage points in market share. Atlanta-based Coca-Cola dominates 44.3 per cent of the US soft drink market, but saw its market share drop between 1999 and 2001.

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With the latest gains, its only 0.2 percentage points away from where it stood in 1998 at 44.5.

3.11 FUNCTIONAL DEPARTMENTS OF ORGANIZATION


There are 6 functional departments within Coca Cola. Marketing Finance Packaging Sales Research and development Administration

Marketing
The Coca Cola is marketing for in consistent The department company every at the With Atlanta to this Headquarters that all effort, for the cohesive responsible and promoting develops core strategies brands ensure

communication profitable marketing products.

market.

the Coca-Cola system maximizes its resources for market leadership and growth. the marketing and departments the are products advertising products

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Finance
The finance and department paid reports out. for of The the the This Coca Cola Company keeping will that so be is responsible of to for financial received the record keeping. involves records used can they money produce see the

financial

records

annual

shareholders

company performance. The Finance department is also responsible for the management of in the the accounts finance company planning of and the for business is each like like marketing like or etc. for The

Coca-Cola budget involved decision.

Company

department

also

responsible

making

department taking over

marketing any major

department or research and development department. They will also be process

Packaging
The packaging so new department that that of The Coca-Cola the Department eyes of is responsible consumers. works with for the packaging of the products. They have to make the packaging attractive Bringing product package meets is their the It products responsibility.

the companies bottling partners to produce an attractive combination.

Sales
The sales department of the Coca Cola Company is to coordinate the selling program. They also have to make the distribution methods, etc. IIMS-MBA 2010-12 Page 23

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Also, decide how much to sell and how much to store in the warehouse and to choose the transporting method which is the most cost efficient and the quickest way.

Research and development


This department has their budget given by the finance department and their responsibility is to investigate new products. They work closely with marketing by looking at marketing research findings. They have to bring new products in the market for the change because the consumer cannot stick with the same old products. If necessary then they also have to improve the quality of the products. The Coca-Cola Company research department has done a lot of research and recently they have launched many new products like Diet coke with lemon, Fanta Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc.

Administration
This department is essential for keeping the business going. They act as a help support of the company, it is not the central purpose the business but every business organization would need this department. Most businesses rely on administration to be organized. They deal with enquiries, give messages produce documents and give information to any customer. The complaints that this department will get would be transferred to the research and development department to make the product better or fix the problem that the consumer is having. These departments are the most important department of The Coca-Cola Company because they helps the company to meets the objectives of The Coca-Cola Company i.e. surviving, customer satisfaction and make more profits. As I said that the help desk department satisfies the customer by providing

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the information they needs and taking the complaints and passing to the research and development departments who improves the products.

3.12 PRODUCTS OF COCA-COLA


Coca-Cola serves in India some of the most recalled brands across the world, Which include names such as Coca-Cola, Thumps up, Sprite, Fanta, along with The Schweppes product range. The acquisition of Thums Up brought some of the leading national soft drinks like Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to This, Kinley mineral water was launched in the year 2000. The Company ranking up "firsts" in the introduction of Canned and PET soft drinks, vending machines and backpack dispensers for crowds of cricket supporters.

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3.13 Brands Tagline


Thums Up Coca-cola Sprite Limica Fanta Maaza - Taste the Thunder - Open Happiness - Seedhi Baat No Bakwass, Clear Hai - Fresh Ho Jao - Go Bite - Bina Guthli Wala Aam

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Bottles in Case in different Packs

COCA COLA
SLOGAN: -

THANDA MATLAB COCA- COLA JO CHAHE HO JAYE COCA-COLA ENJOY SAR UTHA KE PIYO The world`s famous drink, the world 1s most valuable brand. he most recognizable word across the world after OK .Coca Cola has truly remarkable heritage. Developed in a brass pot in 1886, Coca-Cola is the most recognized and admired trademark around the globe. Not to mention the best selling soft drink in the world. In India .Coca Cola was the leading soft-drink till 1977 when government policies necessitated its departure. Coca Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation.

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THUMS-UP
SLOGAN: I WANT MY THUNDER" "THUMPS UP TASTE THE THUNDER"

Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993.Thums Up is a leading carbonated soft drink and most trusted brand in India. 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.Coca Cola has also launched several contests for the promotion of Thums up like Hai Dum and Ninja Jeeto Contest to attract the Youth. Coca Cola spent $ 3.5 million to beef up advertising and distribution for Thums Up. By 2002, it had become India`s No.1 cola drink India.

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MAAZA

SLOGAN: "Taaza Mango, Maaza Mango" "Botal mein Aam, Maaza hain Naam".

Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Maaza was acquired by CocaCola India. Maaza currently dominates the fruit drink category. It is available in SKUs of 200ml RGB, 250ml RGB, 125ml Tetrapak and 200ml Tetrapak

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SPRITE
SLOGAN: "SPRITE BUJHAYA ONLY PYAAS, BAKI ALL BAKWAAS"

"DHIKAWE PE MAT JAO APNI AKHAL LAGAO In India, Sprite was launched in year 1999.Sprite is perceived as a youth icon. With a strong appeal to the youth, Sprite has stood for a straightforward and honest attitude. Its clear crisp refreshing taste encourages the today's youth to trust their instincts, influences them to be true to who they are and to obey their thirst. Sprite is available around the country in 200ml, 300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr and 330ml cans. Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood for straight forward and honest attitude. Its clear crisp refreshing taste encourages the todays youth to trust their instincts, influences them to be true to who they are and to obey their thirst.

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FANTA
SLOGAN: KUCH BH1 HO SAKTA HAI MASTI KA APNA TASTE

Internationally,

Fanta

- The

'orange'

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. Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends. Over the years Fanta has occupied a strong market place and is identified as The Fun Catalyst. Fanta advertising over a time has the biggest association with fun and friends that have reflected through past TV commercials like Masti ka Apna Taste,Bajao Masti.

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LIMCA
SLOGAN: -

JUST TAKE IT EASY

Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country.

The success formula The sharp fizz and lemoni bite combined with the singleminded positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes, refreshes and transforms. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country.

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KINLEY

SLOGAN: Boond Boond Mein Vishvaas.

Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself. 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. Water you can trust to be truly safe and pure. Kinley water comes with reverse-osmosis along with the latest technology to ensure the purity.

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Marketing strategy & survey of right execution for Coca-Cola 3.14 Competitive Environment
Coca-Cola is a leading player in the Indian beverage market with a 60 per cent share in the carbonated soft drinks segment, 36 per cent share in fruit drinks segment and 33 per cent share in the packaged water segment. In 2004, Coca-Cola sold 7 billion packs of its brands to more than 230 million consumers across 4,700 towns and 175,000 villages. The company has doubled its volumes and trebled its profits between 2001 and 2004. Coca-Cola continues to re-affirm its commitment to India through active Citizenship Efforts. All its plants in India partner with local NGOs to alleviate local community issues in numerous small ways. It boasts of impeccable credentials on quality. Coca-Cola has succeeded in spite of an extremely price-sensitive consumer with entrenched beverage consumption habitstea, nimbu-paani (lemonade) and a fragmented and geographically dispersed retail market, and a high tax environment. The key competitors of Coca-Cola in the Indian beverage industry are as follows: PepsiCo PepsiCo stands for the major competitor of Coca-Cola, both worldwide as well in India. Pepsi stands for the second largest carbonated soft-drinks maker in the world, next to Coca-Cola. So, there is always a never ending competition between the products of both the companies. Pepsi cola gives a tough competition to Thums Up and Coca Cola in the cola drinks segment. Again PepsiCos Seven Up and Mountain Dew gives a cut throat competition to Coca Colas Sprite in the clear-lime segment. The competition continues between Coca Colas Fanta and PepsiCos Mirinda, while PepsiCos Slice competes with Coca Colas Maaza in the juice segment. In the juice segment we again have PepsiCos Tropicana giving a fierce competition to Coca Colas Minute Maid Pulpy Orange. In the mineral water segment PepsiCos Aquafina competes with Coca Colas Kinley. In the soda segment too, Coca Cola Kinley soda faces competition from PepsiCos Lehar Evervess soda.

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The only unchallenged sector is the cloudy lime segment where Coca Cola doesnt face any threat from PepsiCo. Pepsi and Coca Cola together hold a market share of 95 per cent, out of which 60.8 percent is held by Coca Cola and the rest is held by Pepsi.

Figure no- Brands under PepsiCo

3.15 Manufacturing Unit of BBPL.


The manufacturing unit of BBPL, situated at Bareilly, is the third largest and one of the bottling operations owned by the company. The plant has one PET line which has the capacity of yielding 109 bottles, per minute, two RGB (Returnable Glass Bottles) lines which yields 600 bottles per minute and one juice line which yield 155 bottles per minute. It caters to the whole of Western U.P except NCR through a network of more than 80 distributors. The manufacture of Coca Cola products involves the following steps: Water is taken from the River and it passes through the water treatment plant, further passing through the sand filter and activated carbon filter, so as to attain pure cleansed water. In the syrup room, the concentrate received from another bottling plant situated at Bareilly (Parshakhera), is blended with the sugar syrup. Once both the water and the final syrup are ready, they are mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product.

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On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and washed for the purpose of filling in the final product in it. This step does not take place in the PET bottle line as the bottles once used are disposed. The product is finally filled in the bottles, crowned (in case of RGB) / capped (in case of PET bottles), labeled and cased in order to be sent into the warehouse for distribution.

3.16 Packaging Details


The following are the packaging details of the products offered by the Coca Cola company for sale in India. Coca Cola, Thums Up, Fanta, Limica, Sprite are available in 330 ml can, 200 ml, and 300 ml returnable glass bottles; 500+100ml free,1.2liter, 1.5 litre and 2 litres PET bottles. Diet Coke is available in 330 ml can and 500 ml PET bottle. Maaza is available in 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1 litre + 200 ml free PET bottles and newly introduced 200ml Tetra Pack. Minute Maid Pulpy Orange is available in 400ml and 1 litre PET bottles. Schweppes Soda Water is available in 300 ml returnable glss, 500+100 ml free PET bottles. Kinley Soda Water is available in returnable glass bottles, 500 + 100ml free and 1.5 litre PET bottles

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Marketing strategy & survey of right execution for Coca-Cola 3.17 Brindavan Beverages Coca-Cola Pvt. Ltd.
In the network of the Coca-Cola system, Coca-Cola has either of the two bottling operation done far the company. 1. 2. COBO (Company Owned & Operated Bottling Operation). FOBO (Franchise Owned & Operated Bottling Operation).

After 1993, when coca cola re enters Indian market, done a lot of changes in the existing system of the soft drink market prevailing in India, by acquiring the major brands and the bottling operations from Parle. After this company founded some of its own bottling operation in India.

In year 1997, company did a major investment of $700 million in India by purchasing other bottling operations, all around India and introduces new technology in them. These bottling plants are called Company Owned and Operation Bottling Operation. Company has full ownership and operational right for these type of operations. The other type of bottling operation for the company are called Franchise Owned and Operated bottling Operation, to these, the company has given the right to produce the product for the company and to supply with in the territory assigned by the company. Company has no ownership or operational right/control over these.

In India Company have 26 COBO and 14 FOBO operations for the production and control of the whole operation in India. These are divided in to various zones that are given in the marketing mix section of this report.

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Brindavan Beverages Coca-Cola Pvt. Ltd. First established plant is


Parshakera. The largest one is in Bareilly. Parshakera plant has 3 RGB filling lines. The RGB line operating at mechanical efficiency of 90% . Company doesn't have the facility for filling Mazza (RGB and Tetra Pack) a Mango flavor drink of Coca-Cola , pet bottling ,water plant.

3.18 Market Segmentation Model of Coca-Cola


Market can be segmented along 3 lines Outlet volume, Locality income Channel cluster.

SEGMENTATION

Channel Cluster Locality Income Grocery Eating & Drinking Convenience Low Medium High
Figure :- Segmentation Model

Outlet Volume

Diamond Gold Silver Bronze`

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Marketing strategy & survey of right execution for Coca-Cola Classification of outlets on the basis of volume:Table :- Classification of Outlets on the basis of Volume

Outlet classification Diamond Gold Silver Bronze

Ko Vpo SLAB(phy C/S) >800 500-799 200-499 <200

TYPES OF OUTLETS: Grocery:


Outlet which primarily engage in retailing of food and various household items. It include general household items of daily usages e.g. commodities like flour, rice and branded household items like toothpaste, mosquito coil, soap etc.

E&D:
Outlet selling items to eat which are being cooked within outlet. They may have place of sitting. It includes QSR / Bakery / Mitie store/Restaurant/Bars / Juice / Soft drinks / Ice cream Parlour / Tea Shop etc.

Convenience:
Includes outlets which are small stores or shop generally accessible locally. These are often located along side busy roads. It includes chemist shop, STD booth, Pan Shops etc.

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E&D includes following outlets:
Fast Food: Self service with limited menu. Pubs: Outlet selling alcoholic beverages and snack items. Dhaba: Situated on roadside and market places catering cost effective

Indian food. Convenience includes:


Pan Shop: Semi-temporary kiosk located near the road side. Selling

cigarettes, beverages and other confectionary items.


Outlet at petrol pumps: Convenience outlets selling top up items, may

be open till late at night or 24 hrs.


Travel

and

convenience

kiosks:

Permanent

kiosks

within

the

airport/railways/bus stand/(inside or outside)selling only beverages or a food and beverage kiosks.

TARGET MARKET
Cokes commercials basically based on young generations, so, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market.

FACTORS EFFECTING SALES


There are so many factors, which affects the sale of coke. Here we are discussing three major factors which effects coke. Per capita income Competitors Weather

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Per Capita Income


First we will discuss about Per capita income. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becoming very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spend heavily on rents, utilities, and education and basic necessities and after that when they get extra money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink. And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries.

Competitors
Cokes major competitor is PEPSI and there is no hesitation to say these because every one knows that and all the other cold drinks and water, coffee, tea are the competitors.

Weather
Weather is the third major factor in effecting the Cokes selling. This is underdeveloped market so the cokes consumption in summers is 70% and in winters is 30%.

MAJOR CUSTOMERS NEED


First of all the majority dont care that what they are going to have. In other words, they dont care before drinking that whether it is Pepsi or coke. They dont actually differentiate between these two brands in order to their tastes. Consumers basically drink what they get.

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They believe on WHAT COLD THEY SOLD Consumers availability in brands is basically works like: Push availability Pull consumers demand.

For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it.

3.19 Brand Order System of Coca-Cola

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4. MARKETING STRATEGY OF COCA-COLA

4.1 Market Strategy & Survey of Coca Cola


"By R.E.D. survey, we mean that, other than doing the fresh marketing activities,

creating new consumer & customer, doing new promotion and Adventuring is done in relation to the 4 P's of marketing that is Product, Price, Place, Promotion. There exist some opportunity in the marketing activity done by the company in the past. In R.E.D. rather than doing fresh marketing activities gaps are found in the alerting system for product, place, and promotion activities done by the company in the past and corrective actions are taken accordingly .In R.E.D. survey While doing the trade in its present manner, opportunities are found for tilling up the gaps in the existing system, and efforts made in order to remove the deficiency by doing the marketing activities.

Our local marketing strategy enables Coke to listen to all the voices around the

world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it. IIMS-MBA 2010-12 Page 43

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As millions of rural Indians reach for a cold soft drink in the hottest summer in

years, Coca-Cola India seems to have discovered the consumers who could rescue its dismal sales record. Coca-Cola India totally misjudged rural India, home to two-thirds of the country's 1 billion population, when it re-entered the country a decade ago.

Yet as the country side emerges as the fastest-growing source of demand for

consumer products, the local arm of the US soft drinks giant seems to have learnt its lesson. "We were just not addressing the masses, that were the problem," says Mr. Sanjeev Gupta, Coca-Cola's operations chief.

The company's new strategy of smaller bottles, price cuts and advertising that

straddles cities and villages pushed turnover last year up by a quarter to nearly Rs.5000 crore. And Thumbs Up, a local brand that Coca-Cola bought and then ran down, is also recovering spectacularly. The success of Thumbs Up, whose market share is now roughly equal to that of marker leader Pepsi at 23 percent, is an embarrassment for Coca-Cola, which is in third place with 16.5 percent (from 12 percent three years ago) in India's Rs.8000 crore soft drinks market. Coca-Cola returned to India after being kicked out by the government in the mid1970s. It paid a high price for the then market leader, Thumbs Up, and tried to kill it off in the mistaken belief that this would pave the way for Coca-Cola's rise. Extravagance, unoptimistic and naive reading of the market and mismanagement of its new bottling assets led Coca-Cola to write down Rs.2000 crore of its Indian assets in 2000. The greatest indignity is that India is one of the few markets where Pepsi has outsmarted Coca-Cola.

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"Coca-Cola came in blazing but mishandled itself and Thumbs Up. That makes

its recovery all the more remarkable." says Mr. C. Srinivasan, chairman of business consultant AT Kearney India. Coca-Cola's Indian management, now stable after recent flurry of departures, persuaded the US parent to persist with India, and won $100 m to fix problems such as poor distribution. Its Atlanta headquarters was won over because of India's potential. India's per capita consumption of carbonated drinks is less than hall the level in Pakistan and about 8 percent of China's. Mr. Gupta argued that closing the gap would only come by chasing the rural consumer.

"We had to address the 75 percent (that lives in rural areas) and not just the 25

percent (in cities) and that meant using small-pack innovations," says Mr. Gupta. "The only consumer goods companies that make it in India are those that sell micro-sized products at low prices."

Coca-Cola's 200 ml bottle (down from 300 ml) sells for Rs.5, half the price of a

conventional sized bottle. To achieve a return on this "low margin, high volume" strategy. Coca-Cola had to shrink its ballooning costs, while raising output in a market growing at just 8-9 percent per year. Coca-Cola added 30 assembly lines, including five plants; cut costly staff; revamped transport; shrunk bottles and made them lighter and packed in smaller crates to increase a truck's carrying capacity; added distributors and expanded the number of outlets in towns and villages by a fifth to about 1 m. Coca-Cola's aim was to "lock in" retailers in villages of at least 1,000 people connected to usable roads. One method was to help those with no savings or access to formal credit to buy their costliest asset: a fridge. The company negotiated big discounts from fridge producers, placing an order equivalent to two months' output of the domestic fridge industry. IIMS-MBA 2010-12 Page 45

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Discounts were passed on to the retailers, cutting the average purchase price by

Rs.3,000 more than three months' wages in a village.

Finally, Coca-Cola dumped a global advertising campaign that was irrelevant to

the Indian market and adopted one featuring Bollywood stars. "The campaign is finally speaking to the right market." says marketing consultant Mr. Alok Jain. The adverts also loudly proclaimed the Rs.5 price benchmark, meaning retailers could not overcharge.

THE RE-LOCALIZATION OF COCA-COLA :


A glance at the 1999 Annual Report of The Coca-Cola Company leaves you with

a strong impression of two words that seem to be very deeply-etched in every statement made by the company - 'Consumer* and 'Localization'. The Chairman Douglas Daft states in his address to shareholders that, " If there's one thing that I've learned in my 30 years at Coca Cola it is - Think locally and act locally." Coca -Cola's localization drive appears to be partly spurred by the adverse impact on the image of the company, due to the various issues that cropped up last year in different parts of the world. Like the product contamination in Belgium and France, the problems with regulators in Europe, the racial discrimination lawsuit in United States.

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In a recent article in The Financial Times, Mr. Daft talks of

how Coca-Cola whose basic success emanated from its strength of being a 'multi-local' business relying heavily on the insight of local business partners, quite forgot the secret of its success and veered on the path of centralization. He has staled in this article that Coca-Cola wandered off the right path and endured a year of dramatic setback, by ignoring the changing global scenario and continuing to believe that a strategy that was once successful will always yield results. As he puts it "As the Century was drawing to a close, the world had changed, and we had not. The world was demanding greater flexibility, responsiveness and local sensitivity, while we were further centralizing decision making, standardizing practices and were moving away from our traditional 'multi-local' approach".

The company in the 80's and 90's had focused on centralizing its operations for

enabling effective management of a vast global enterprise that was being spread over 200 countries. It has now woken up to the fact that the world is changing very fast today and that a localized management that can quickly respond to the challenges and needs of the relevant market will be critical to success, rather than a unified management at the center. And that is precisely what Coca-Cola has set out to do. It appears to be handing out a greater degree of freedom and responsibility to the frontline managers in their respective areas of operations. It has decided to cut jobs and convert itself into a leaner structure. In India too, the complex holding structure has been broken down and converted into a simplified structure. A single holding company Hindustan Coca-Cola Holdings Pvt. Ltd and one downstream subsidiary - Hindustan Coca-Cola Beverages - formed by the merger of 4 bottling subsidiaries of Coca Cola and that of Schweppes now operate in India. The parent has performed a comprehensive review of its Indian bottling operations and has announced that it will be writing off $400mn worth of assets in India in the first quarter of this year.

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The meeting hosted last week by the company to update investors on its

business strategies and outlook for the future also sang the same tune of how members of the global Coca-Cola management team are implementing their "Think Local Act Local" philosophy. The company's focus, according to the management, will be to encourage higher consumption of non alcoholic beverages and the CocaCola brands in every country. This will be achieved through an intense focus on consumers, communities, customers, the Coca-Cola system and Coca-Cola people. The Consumer focus strategy involves using innovative and tailored marketing programs based on local consumer insights to enable the company to keep growing. "We want to ensure that we have a tailored nonalcoholic beverage portfolio in every community that touches consumers in locally relevant ways." states the annual Report of the company. It gives the example of the company's innovative marketing strategy in India, which leveraged on the Diwali Festival and the entrenched family values in the Indian society to connect to the Indian consumer at a personal level. In Mr. Daft's words "The 21st Century has taught us one important powerful lesson that the next big evolutionary step in going global has to be going local"..

4.2 RESEARCH FOR MARKETING STRATEGY


Focus on availability of products in market. Focus on availability of product in the outlet. Coke products visible for consumers. More focus in rural area. Regular market visit by market developer. Distribution of product according to locality. Extra focus on monopoly outlets. Aggressive advertisement.

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Marketing strategy & survey of right execution for Coca-Cola 4.3 PRODUCT STRATEGY:Product mix of Coca-Cola consists of the various brand packs and flavors. Product strategy of the Coca-Cola is to promote all the brands available in all the brands packs and to introduce the product in new flavors and. even new product. Regarding this Kinley soda is introduced. Fanta in green apple flavor is also introduced.

4.3.1 Focus on availability of products in market:


Coca-cola works on dikega to bikega philosophy. This is the main formula of the marketing strategy of each company. So availability of product in the market is clear. For this reason market developer daily come in market to check their

product availability.

4.3.2 FACILITATING THE PRODUCT BY INFRASTRUCTURE


For providing their product in good manner company has provided infrastructure these includes: Visi cooler Freezers Display racks Free empty bottles and shells for bottles

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Marketing strategy & survey of right execution for Coca-Cola 4.4 PRICE STRATEGY:
Regarding the pricing policy or the price to the distributor is not disclosed to me, but as done for the different product of the company, company has priced the product same as that of its major competitor or the market leader.

PRICE Trade Promotion


Coca Cola Company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And thats why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. They do agreements with a shop keepers and stores to exclusive sale in that store. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.

4.4.1 Different Price In Different Seasons


Some times Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in India. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.

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4.4.2 STRATEGIES OF GETTING GOALS I.E. HIGH PROFITS


To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows.

Volume can be increased Interest level of consumers To take part in energetic festivals

How to increase the volume of consumers?


Coke can increase the volume by expanding the industry of coke. Through advertisements, offering different interesting things to attract people towards this product.

How to increase the interest level of consumers?


Coke is increasing the interest level of consumers by offering different flavors. For example Coke is increasing the number of flavors in Fanta, this is one of the product of coke. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained.

How to take part in energetic events?


Coke is already taking part in the events like world cup cricket since last many years. Coke offers different attractive things in their events and through this Coke gained high profit and consumption of coke increased on these occasions.

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4.5 PLACE STRATEGY:


The Coca-Cola Company in India is governed from its corporate office located at Bareilly. It governs the working of three zones covering whole U.P these zones are: Northern zone, Eastern zone, Western zone. These zones are divided in to various, plants, which govern the area assigned to them. The areas are the various distribution centers called distributors and C&F agents. Then comes the retailers/customer for the company's product, they receive goods from distributors and C&F agents. Finally consumer is there, having the product from the customer's shops or delivered to their home, it is more clearly visible through this chart. The Coca-Cola Company, which gave its reach to the mouth of billions of people all around the world having a wide distribution, network. In India, the pace and speed at which Coca-Cola has widened its business is really amazing. Distribution network is the biggest strength of the company.

Focus on availability of product in outlets:


There is big difference between the availability of products in market and outlets. Cocacola want that their product displayed in each outlet in market so it is important that the product first available in market after that it put on outlets.

4.5.1 Focus on visibility of coke product in outlet:


The aim of coca-cola is that its product should be visible for the customers so company gives to retailers racks so many display items. Now a days the company is giving visicoolers to retailers for visible their chilled product in market for more sales.

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More focus in rural area: In early 2002 CCI launched a new advertising campaign for attract more rural customers. The advertisements with India leading bollywood star Amir Khan. With movie of Lagan. The tag line of advertisement was Thanda Matlab Coca-Cola

4.5.2 REGULAR MARKET VISIT BY MARKET DEVELOPERS:


To know the position of cokes product in the market, coca-cola appoint some executive those go in market and check availability, visibility of product, take care companies assets, check visicoolers and talk to shopkeeper and take feedback about their product. Distribution of product according locality: Coca-cola Company distributes their schemes according to area. Area or place where soft drinks sold in a large manner, on those place company gives good schemes to shopkeeper and retailer .place like railway station, bus stand, film hall are consider in this category. Place which have low selling, company gives small schemes to the shopkeeper. Extra focus on monopoly outlets: Outlets which only sales coca-cola product and gives good sales to company, are consider in this category company gives extra schemes, discount and make long relationship. Problem of these kinds of outlets resolve as soon as possible.

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Marketing strategy & survey of right execution for Coca-Cola 4.6 PROMOTION STRATEGY:
This part of the marketing is playing a very vital and important role in the current situation in India. Looking at the competition and promotion and advertising budget of both the companies coca cola and Pepsi, one can easily estimate the importance of this. The promotion mix of Coca-Cola is divided in to Top line promotion and below the line promotion. Top line promotion includes the promotion designed and done by the company's corporate office of Bombay TV ads, design of banners, and other POS done by the company simultaneously all around India with no Difference in designs etc. fall in this category. Below the line promotion includes the promotion schemes, publicity material, POS display done by the company from zonal, plant, sales manager and area sales manager level. . At the sales manager and area sales manager level the promotion done exclusively for the cities in their respective area and other POS display. While advertising explains the logics behind buying, sales promotion offers can incentives to do so. Sales promotion operates at three levels. At the level of consumer it is called consumer promotion e.g. free gifts, samples and price offs. At the level of dealers and distributors, it is allied trade promoting e.g. free goods display contests, dealer sales contest, push money etc. At the level of sale person it is called sales force promotion e.g. salesmens contest, benches, sales rallies. Conjunctionally the glamour in sales promotion is stolen by advertising. Advertising expenses so far accounted for more than 60% of the total promotional budget. Today sales promotion are rising rapidly with more and more bands flooding the market, the pressure to occupy display space at retail outlet is more and retailers thus demand more sales promotion efforts from their suppliers.

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Getting shelves
They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.

Eye Catching Position


Salesman of the coca cola company positions their freezers and their products in eyecatching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion
Company also do sponsorships with different college and schools cafes and sponsors their sports events and other extra curriculum activities for getting market share.

UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children

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Figure :- Promotion Strategies .

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Marketing strategy & survey of right execution for Coca-Cola 4.6.1 Why COCA-COLA using SALES PROMOTION :-

Sales promotion is main tool for increasing sales so following causes for adopting sales promotion. To stimulate the demand by popularizing product. To face competition effectively. To keep the memory of products in mind of consumers. To supplement the personal selling and advertisement. To establish the large market segment. To capture more market share from competitor. To maintain the market. To attract distributors towards its brand. To attract more consumers by giving them free gifts on products. To include middle man wholesaler and retailers to purchase goods in large quantity by offer them more facility on higher trade more cash discount, bonus etc. To arrest seasonal decline in sales. To assist sales man in increasing sales, achieving sales target and salesmans activities for problem sales. To help of new products this introduced in market recently. To introduce such sales promotion methods as to adopt aggressive selling and thereby increase sales. To stimulate market research.

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Marketing strategy & survey of right execution for Coca-Cola 4.6.2 FORMS OF SALES PROMOTION

Sales promotion is basically in 3 forms: 1. Consumer promotion:-Targeted final buyers. Trade promotion:-Targeted retailers and wholesalers. Sales force promotion:-Targeted the numbers of sales force. CONSUMER SALES PROMOTION METHODS: Consumer sales promotion methods are those methods which are directly at customers to induce them to buy the companys product. Consumer sales promotion devices. 2. Free trails Samples Premium Bonus stamps Cash refund offer TRADE SALES PROMOTION METHODS: - Trade promotion is an incentive given to middle man to buy. Discount Display and advertising allowance Store demonstration Free goods Free tours etc. Goods in large quantity from the producer or manufacturer. The main sales promotion methods are such as:

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3.

SALES PROMOTION METHOD: -sales promotion method is those methods which intended to motivate the sales force to increase sales. These methods support a sales man to perform his job more effectively and sincerely.

Bonus to sales force Sales force contests Sales meeting convention and conferences

4.7 DISTRIBUTION CHANNELS STRATEGY


Coca Cola Company makes two types of selling Direct selling Indirect selling

Direct Selling
In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.

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Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.

4.8 CHANNEL MANAGEMENT


The partner type relationship with bottlers franchise owned bottling operation [FOBO], as well as company owned bottling operation [COBO] network of the channel management mostly cover these type bottling. It is this way in Coca-Cola Indian strengths in its marketing that gives it an edge. Every number of its sales team is meticulously taught the merchandising and display skills that can leverage the reach of the companys bottling network to achieve high visibility of the product.

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4.9 ADVERTISEMENT STRATEGY

As defined by the American Marketing Association (AMA), Advertising is ay from of non-personal presentation of goods, services or ideas for action, openly paid for by an identified sponsor. Advertising today is a worldwide phenomenon. It is important at the outset to recognize that many advertisers use advertisements for many purposes with many different possible effects. Advertisements can be recognized s paid non-personal communication forms used with persuasive intent by identified sources through various media. Advertising are most commonly associated with the mass media of newspapers, magazines, cinema, television, and radio, although they frequently flourish in the other forms such as billboards, poster, and direct mail as well and finally advertisements are overwhelmingly used with persuasive intend. That is the advertisers are striving to alter our behavior and or levels of awareness, knowledge and attitude, and so on in a manner that would be beneficial to them.

4.9.1 BASIC FEATURES OF ADVERTISING


On the basis of various definitions it has certain basic features such as: 1. 2. 3. 4. 5. It is a mass non-personal communication. It is a matter of record. It persuades buyers to purchase the goods advertised. It is a mass paid communication. The communication media is diverse such as print (newspapers and magazines)

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WHOS INVOLVED
Advertising can be thought of as a five-part business. Advertisers who something use Advertising agencies and are sometimes assisted by Support Organizations sent their messages through Media(generally mass) to potential Consumers of the product, service.

Advertising is a key part of marketing, but far from being (as is often assumed) the sum of it. Advertising is the use of media to inform consumers about something and or to persuade them to do something in effect; it brings product and consumers together, and then modulates the relationship between them.

WHAT IS ADVERTISING
It is a mass communication of information intended to persuade buyer to buy product with a view of maximizing a companys profits. The elements are. It is a Mass Communication reaching large number of customers. It makes mass production possible. (Helps the company reach economics of scale). It is a non-personal communication. It is a commercial communication. It is speedy communication. In todays competitive world. It is an essential communication.

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4.9.2 FUNCTIONS OF ADVERTISING

For many firms advertising is the dominant element of the promotional mix particulars for those manufacturers who produce convenience goods such as detergent, non prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by maters of automobiles, home appliances, etc, to introduce new product and new product features its uses its attributes, pt availability etc. Advertising can also help to convince potential buyers that a firms product or service is superior to competitors product in make in quality, in price etc. it can create brand image and reduce the likelihood of brand switching even when competitors lower their prices or offer some attractive incentives. Advertising is particularly effective in certain other spheres too such as: i) ii) iii) iv) When consumer awareness of products or service is at a minimum. When sales are increasing for all terms in an industry. When a product is new and incorporates technological advance not strong and. When primary buying motive exists.

It performance the following functions:


Promotion of sales Introduction of new product awareness. Mass production facilitation Carry out research Education of people.

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4.9.3 TYPES OF ADVERTISING


Broadly speaking, advertising may be classified into two categories viz., product and institutional advertising.

Product Advertising:
The main purpose of such advertising is to inform and stimulate the market about the advertisers products of services and to sell these. Thus types of advertising usually promote specific, trended products in such a manner as to make the brands seam more desirable. It is used by business government organization and private non-business organizations to promote the uses features, images and benefits of their services and products. Product advertising is sub-divided into direct action and indirect action advertising, Direct action product advertising wages the buyer to take action at once, ice he seeks a quick response to the advertisement which may be to order the product by mail, or mailing a coupon, or he may promptly purchase in a retail store in response to prince reduction during clearance sale.

Product advertising is sub-divided into direct & indirect action advertising & product advertising aims at informing persons about what a products is what it does, how it is used and where it can be purchased. On the other hand selective advertising is made to meet the selective demand for a particular brand or type is product.

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Institutional Advertising:
It is designed to create a proper attitude towards the sellers to build company image or goodwill rather than to sell specific product or service. Its purpose is to create a frame of mind and to implant feeling favorable to the advertisers company. Its assignment is to make friends for the institution or organization. It is sub-divided into three categories: patronage, public, relations and public service institutional advertising. i) In patronage institutional advertising the manufacturer tells his prospects and customer about himself his policies and lives personnel. The appeals to the patronage motivation of buyers. If successful, he convinces buyers that his operation entitles him to the money spent by them. ii) iii) Public relations institutional advertising is used to create a favorable image of the firm among employees, stock-holders or the general public. Public service institutional advertising wages public support.

Other Types:
The other types are as follows: i) ii) iii) iv) Consumer advertising Comparative advertising Reminder advertising Reinforcement advertising

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4.9.4 ADVERTISING OBJECTIVES


The long term objectives of advertising are broad and general, and concern the contribution advertising should make to the achievement of overall company objectives. Most companies regard advertising main objective as hat of proving support to personal selling and other forms of promotion. But advertising is a highly versatile communications tools and may therefore by used for achieving various short and long term objectives. Among these objectives are the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. To do the entire selling job (as in mail order marketing). To introduce a new product (by building brand awareness among potential buyers). To force middlemen to handle the product (pull strategy). To build brand preference 9by making it more difficult for middleman to sell substitutes). To remind users to buy the product (retentive strategy). To publicize some change in marketing strategy (e.g., a price change, a new model or an improvement in the product). To provide rationalization (i.e. socially acceptable excuses). To combat or neutralize competitors advertising. To improve the moral of dealers and/or sales people (by showing that the company is doing its share of promotion). To acquaint buyers and prospects with the new uses of the product (to extend the PLC).

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Marketing strategy & survey of right execution for Coca-Cola BENEFITS


The functions of advertisement, and that purpose its ethics, may be discussion below: 1. It leads o cheaper prices. "No advertiser could live in the highly competitive arena of modern business if his methods of selling were more costly than those of his rivals." 2. 3. It acquaints the public with the features of the goods and advantages which buyers will enjoy. It increases demand for commodities and this results in increased production. Advertising : a) b) c) d) 4. Creates and stimulates demand opens and expands the markets; Creates goodwill which loads to an increase in sales volume; Reduces marketing costs, particularly product selling costs. Satisfied consumer demands by placing in the market what he needs.

It reduces distribution expenses in as much as it plays the part of thousands of salesman at a home. Information on a mass scale relieves the necessity of expenditure on sales promotion staff, and quicker and wider distribution leads to diminishing of the distribution costs.

5. 6.

It ensures the consumers better quality of goods. A good name is the breath of the life to an advertiser. By paying the way for large scale production and increased industrialization, advertising contributes its quota to the profit of the companies the prosperity of the shareholder the uplifts of the wage earners and the solution of the unemployment problem.

7.

It raises the standard of living of the general public by impelling it to use to articles of modern types which may add to his material well being. "Modern advertising has made the luxuries of yesterday the necessities of today ..................... It is a positive creative force in business. It makes two blades of grass grow in the business world where one grew before.

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8. It establishes the goodwill of the concern for the test articles produced by it and in course of time they sell like hot cakes consumer search for satisfaction of their needs when they purchase goods what they want from its beauty, superiority, economy, comfort, approval, popularity, power, safety, convenience, sexual gratification and so on. The manufactures therefore tries to improve this goodwill and reputation by knowing the buyer behavior.

WHY & WHEN TO ADVERTISE


Advertising as a tool to marketing not only reaches those who buy, but also those whose opinions or authority is counted for example a manufacturer of marble tiles and building boards advertises not only to people who intend to build houses but also to architect and engineers. While the manufacturers of pharmaceuticals products advertise to doctors as well as to the general public. At time it is necessary for a manufacturer or a concern to advertise things which it does not sell but which when sold stimulates the sales of its own product. There are concerns like electric heaters, iron etc. because the use of these increases the demand for their products. Advertising should be used only when it promises to bring good result more economically and efficiently as compared to other means of selling. There are goods for which much time and efforts are required in creating a demand by sending salesman to prospective buyers than by simply advertising them. In the early days of the cash register in America it was sold by specially trained salesman who called on the prospective users and had the difficult task of convincing them that they could no longer carry on with the old methods, and that they urgently needed a cash register. In our country certain publishers have found it less costly to sell their books by sending salesman from house to house among prospective buyers than to advertise them. In these two examples the cost of creating demand would be too high if attempted by advertising alone under such circumstances advertising is used to make the salesman acceptable to the people they call upon to increase the confidence of the public in the house.

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Marketing strategy & survey of right execution for Coca-Cola 4.9.5 DESIGNING ADVERTISING CAMPAIGN:
Advertising is an organized series of advertising messages. It has been defined as "a planned, co-ordinate series of promotional efforts built around a central theme and designed to reach specified goals." In other words, it is an orderly planned effort consisting of related but self contained and independent advertisements. The campaign may appear in one more media. It has single theme or keynote idea and a single objective or goal. Thus, "a unified theme of content provides psychological continuity throughout the campaign while visual and oral similarity provides physical continuity. In short run, all campaign want pre-determined psychological reaction in the long run, practically all campaigns have sales goal. The series of advertisements used in the campaign must be integrated with the sales promotional efforts and with the activities of the sales force. Campaigns vary in length some may run only for a few days, other for weeks, yet other for a season or the entire year. Usually a range of 3 to 6 months includes many campaigns. Many factors influences campaign length such as competitors advertising media, policies, and seasonal falls curves of the product involved the size of the advertising funds, campaign objectives and the nature of the advertisers marketing programmed.

OBJECTIVES OF CAMPAIGN
The advertising campaign, especially those connected with the consumers aims at achieving these objectives: i) ii) iii) iv) v) vi) vii) To announce a new product or improve product. To hold consumers patronage against intensified campaign use. To inform consumers about a new product use. To teach consumers how to use product. To promote a contest or a premium offer. To establish a new trade regional, and To help solve a coca regional problem.

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i) ii) iii) iv) v) vi) To create a corporate personality or image. To build a company prestige. To keep the company name before the public. To emphasize company services and facilities. To enable company salesman to see top executive consistently when making sales calls, and To increase friendliness and goodwill towards the company. Developing the campaign programmers. The advertising campaigns are prepared by the advertising agencies, which work on behalf of their clients who manufacture product or service enterprises, which have services to sell. The word campaign is used because advertising agencies approach their task with a sum Blanca of military fanfare in which one frequently hears words like target audience logistics, zero in and tactics and strategy etc. The account executive co-ordinates the work in a campaign. The creation of an advertising campaign starts with an exploration of consumers habits and psychology in relation to the product. This requires the services of statistical trained in survey techniques and of others trained in social psychology. Statisticians select samples for survey which are done by trained interviewers who visits individuals, included in the sample and ask question to find out about their taste and habits. This enquiry often leads to a change in a familiar product. For instance bathing soap may come in several new colors or cigarette in a new packet or talcum powder in another size. Such interviews are often quite essential to find out the appeal of advertising message for a product that would be most effective with consumers. After getting the data the account executive puts together the essential elements of his clients brief, interprets the research findings and draws up what he calls the "advertising strategy".

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Marketing strategy & survey of right execution for Coca-Cola 4.9.6 STAGE IN ADVERTISING CAMPAIGN
Several steps are required to develop an advertising campaign the number of stages and exact order in which they are carried out may vary according to organizations resources, the nature of its product and the types of audiences to be reached. The major stages/steps are: 1. 2. 3. 4. 5. 6. 7. 8. Identifying and analyzing the advertising. Defining advertising objects. Creating the advertising platform. Determining the advertising appropriation. Selection media plan. Creating the advertising message. Evaluating the effectiveness of advertising. Organizing of advertising campaign.

1.

Identifying & Analyzing the Advertising target:


Under this step it is to decided as to whom is the firm trying to reach with the

message. The advertising target is the group of people towards which advertisements are aimed at four this purpose complete information about the market target i.e. the location and geographical location of the people, the distribution of age, income, sex, educational level, and consumers attitudes regarding purchase and use both of the advertising product and competing products is needed with better knowledge of market target, effective advertising campaign can be developed on the other hand, if the advertising target is not properly identified and analyzed the campaign is does likely to be effective.

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2.

Determining the advertising objectives:


The objectives of advertisement must be specifically and clearly defined in

measurable terms such as "to communicate specific qualities about a particulars product to gain a certain degree of penetration in a definite audience of a given size during a given period of time", increase sales by a certain percentage or increase the firms market shares." The goals of advertising may be to: i) Create a favorable company image by acquainting the public with the services offered available to the employees and its achievements. ii) Create consumers or distributor awareness by encouraging requests providing information about the types of products sold; providing information about the benefits to be gained from use of the company's products or services; and indicating how product (or services) can used; be

iii)

Encourage immediate sales by encouraging potential purchasers through special sales contests, getting recommendation of professional people about company's products etc.

iv)

It secures action by the reader through associating ideas, repetition of the same name in different contexts, immediate action appeal.

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3.

Creating the Advertising platform:


An advertising platform consists of the basic issues or selling points that an

advertiser wishes to include in the advertising campaign. A single advertisement in an advertising campaign may contain one or more issues in the platform. A motorcycle producers advertising platform should contain issues which are of importance to consumers filling and such issues also be those which the competitive product do not posses.

4.

Determining the Advertising Appropriation:


The advertising appropriation is the total amount of money which marketer

allocates. For advertising for a specific time period. Determining the campaign budget involves estimating now much it will cost to achieve the campaigns objectives. If the campaign objectives are profit relating and stated quantitatively, then the amount of the campaign budget is determined by estimating the proposed campaigns effectiveness in attaining them. If campaigns object is to build a particular type of company image, then there is little basis for predicting either the campaigns effectiveness or determining the budget required.

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5.

Selecting the Media:


Media selection is an important since it costs time space and money various

factors influence this selection, the most fundamental being the nature of the target market segment, the type of the product and the cost involved. The distinctive characteristics of various media are also important. Therefore management should focus its attention on media compatibility with advertising objectives. Media Press Advertising or Print Newspapers Form City, Daily, Small town, Sundays, Fortnightly, and

1. i)

weekly,

quarterlies,

financial

annuals, English, vernacular or ii) Magazines regional languages. General or special, illustrated or otherwise, iii) English, Hindi,

Regional language. Trade & Technical Journals, Industrial Circulated all over the country year books, commercial, directories, and among the industrialist and telephone, Directories, references business magnates. Circulars, catalogues, leaflets, brochures, folders,colanders, booklets, blotters, books & annuals. Direct Mail

2.

3.

Outdoor or Traffic

diaries & other printed material. Poster and bills on walls, railways stations platforms outside public buildings.

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Coca Cola Company use different mediums Print media Pos material TVs commercial Billboards and holdings

Print Media
They often use print media for advertisement. They have a separate department for print media.

POS Material
Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.

TV Commercials
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.

Billboards and Holdings


Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards.

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Marketing strategy & survey of right execution for Coca-Cola 4.9.7 AGGRESSIVE ADVERTISEMENT:
Coca-cola use the concept of aggressive advertises for sales promotion. Company introduces different schemes and advertisements build brand image and establish awareness. Brand ambassador play an important role. Brand ambassador encourage the today youth to trust their instincts, influence them. Successful advertisement campaigns like Taaza Mango, Maaza Mango and Bottle Mein Aam, Maaza Hai Naam. Coca-cola advertisement came Life Ho To Asi were very popular and had entered in youth vocabulary. In 2002 company launched the campaign Thanda Matlab Coca-Cola which is sky rocketed the brand to make. Coca-Cola Lunched So Many Advertising For Market Capture Amir Khans Advertisement Oye Soniyo Thanda Piyo

4.10 PUSH & PULL STRATEGY


Push Strategies: BBPL is using Push strategy in which they use its sales force

and trade promotion money to induce intermediaries to carry, promote and sell the product to end users i.e. consumers. For Example - As BBPL is giving free pet bottles and other trade schemes to distributors, agency owners and retailers.
Pull Strategies: BBPL is also using Pull strategy in which they are using

advertising and promotions to persuade consumers to ask intermediaries for the company brand product by this way BBPL inducing customer to order to from shopkeeper. For Example BBPL is using flanges, display racks, tier racks, standees, mobile hangers and visicooler brand strips.

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Marketing strategy & survey of right execution for Coca-Cola 4.11 SWOT Analysis of BBPL
Strengths
Leader in the beverage industry with quality brands. Improved quality control Use of the latest technology Heavy investment in both infrastructure and sales promotion campaigns Strong distribution network Modified and attractive packaging Strong advertising network.

Weaknesses
The entire infrastructure needs a face-lift. Unskilled labour Tight case policy Fear of retrenchment among the workers

Opportunities
Wide market to explore and tap the best benefit out of it, by means of Horizontal Expansion. Good rural market, where Coca Cola has already began its task of Horizontal Expansion. The direct selling and distribution zones of Coca Cola are well managed.

Threats
Stiff competition (especially from PepsiCo, Parle Agro & Dabur) in the Indian market. Illegal distribution done by some distributors.

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4.12 STUDENTS WORK PROFILE


I was appointed in coke as a management trainee. My role & responsibilities were: Sales promotion Making the Distribution strategies. Checkout the all freezes which are provided by coke. Find the advertising places. Survey of the target market. Find out the competitors strategies in the market. To giving the knowledge of schemes of coke to retailers.

4.13 DESCRIPTION OF LIVE EXPERIENCES


To learn about the sales strategy To learn that how to increase sales volume To learn how to treat retailers To learn about the market demand To learn about the sales promotion and distribution

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5. DATA ANALYSIS & INTERPRETATIONS


ANALYSIS OF CONSUMERS GRAPH NO:-1.1

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S ales

100% 80% 60% 40% 20% 0% PepsiCo CocaCola 39 61 Sales

INTERPRETATION:When asked about particular brands consumers responded the two colas namely Pepsi and coke as their favorites. Out of which Coca Cola was leading with 61% while Pepsi came second at 39%, It was also observed that cola segment was preferred by more than 70% of the total consumers interviewed.

GRAPH NO:-1.2 Why do you prefer it?

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Price 21%

Advertising & Schemes 29%

Easy Availability 31%

Preference 19%

INTERPRETATION:When asked to the consumers responded availability of a particular brand of soft drink of the most important in their purchase decision. Through advertising and sales promotion schemes were also very important while making their final purchase decision as it is an impulse purchase, consumers often related their purchase with the recall of an ad which their viewed on television. Apart from easy availability and promotional schemes price was another major driving factor in the purchase of a soft drink for consumers (Pet bottles prices vary).

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GRAPH NO:-1.3 When you talk of soft drink advertising which all brands come to your mind (please specify in order of recall)?

Maaza 5% Pepsi 35%

Others 6%

Limca 9% Thums up 16%

Coke 29%

INTERPRETATION:When the above question was asked to the consumers they could easily recall Pepsi and Coke ads almost equally. Though Pepsi had a very minor edge. This question also shows Pepsis aggressive nature in advertising, which is its trademark the world over. Pepsi has always been known as an aggressive advertiser and this is also true in Indian market. Thums up was a distant third because of its continuous attacks on Pepsi. IIMS-MBA 2010-12 Page 82

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GRAPH NO:-1.4 Do you think the advertising done by the companies affects the sales of their respective soft drinks?

No 29%

Yes 71%

INTERPRETATION:As its is clear from the above graph that advertising as a major impact on the sales of soft drinks most of the consumers almost 71% thought advertising has direct effect on the sales of the soft drinks. When consumers were asked about the effect of ads on sales most of them responded in favor. They said that ads were the most important factor in driving the sales of any brand. Especially with the younger generation, it often drives them towards a particular brand of soft drink due to its advertisement.

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GRAPH NO:-1.5 Which form of advertising and sales promotion strategies do you think is most effective for soft drink industry? 41
29

45 40 35 30 25 20 15 10 5 0 Sales Promotion Schemes

13
8

Television Advertising

Outdoor Advertising

INTERPRETATION:Consumers think that television advertising has a major impact on the sales of soft drinks. As television reaches maximum urban homes, which are the major market of the soft drinks, they have a direct impact on the consumers behavior. Apart from that newspaper advertising is also important. Apart from these advertising media, sales promotion schemes from the next important strategy.

GRAPH NO:-1.6

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Marketing strategy & survey of right execution for Coca-Cola According to you which companys advertising are more creative and appealing?

57 60 50 40 30 20 10 0 PepsiCo Coca Cola 43

INTERPRETATION:HTA, the advertising agency for Pepsi, has come up with many innovative ads in the past, creating a good impression in the mind of consumers. Most of the consumers interviewed responded that they like Pepsi ads more than that of Coke. Recently Coke has also come up with few ads, which are specifically by the consumers.

ANALYSIS OF RETAILERS
GRAPH NO:-2.1
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Eatery 22%

Others 6%

Sweet Shops 27%

Provisions Stores 45%

INTERPRETATION:To conduct the research a number of Retail Outlets were visited these retail outlet included provisions stores, eateries, sweets shops, tea stalls, Dhabas etc. Out of these it was found that provision stores of the local market where the major sellers of the soft drinks and consumers usually preferred to buy soft drinks from their local grocery store.

GRAPH NO:-2.2

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Marketing strategy & survey of right execution for Coca-Cola Which segment of soft drink consumer generally asked for? (Rank them on scale 1, 2, 3)1 is max. 3 is min.

60 51 50 40 30 20 10 0 Cola Orange Cloudy Lemon Clear Lemon Others 27 14 4 4

INTERPRETATION:As it is an apparent from the above graph when asked about which segment the consumers generally asked for the retailers respondent that Cola by itself was the largest selling soft drink amounting to 61% of total soft drink sales. Orange came a distant second at 17% followed by cloudy lemon, which constituted another 14%.

GRAPH NO:-2.3 Why do think that a consumer ask for a particular brand of soft drink?

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Advertising & Promotion 39% Brand Preferences 17%

Price 21%

Availability 23%

INTERPRETATION:The consumer preferences are very fragile and not firm. Consumers preference usually changes with the various schemes and the advertising. Which has major impact on their purchase decision? Price is another critical factor on which the consumer purchase decision is based. It is often found that the consumers change their preference in accordance with various price discounts offered to them. Availability is another major aspect, which decides the actual purchase. A consumer may change his or her IIMS-MBA 2010-12 Page 88

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preference based in the fact that which brand is available chilled at that moment.

GRAPH NO:-2.4 Major sale of soft drink is due to?

40 35 30 25 20 15 10 5 0

38

25 21 16

Availability Price

Brand Name

Scheme

INTERPRETATION:Though advertising and sales promotion act as a major tool to attract customers for the purchase of the particular soft drink, but it is actually the availability that is by far the most important factors, which drive the sale. Apart from availability the price factor is again cited as an important factor in the actual sale of the soft drinks. Apart from these various schemes and sales promotion activities under taken by the

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company also acts as sources of sale. The brand preference and loyalty is by far the least important factor driving the sale.

GRAPH NO:-2.5 What are the attributes that influence you to decide which brand of soft drink to keep? (Rank them on scale of 1-4).

50 45 40 35 30 25 20 15 10 5 0 Company Support INTERPRETATION:Consumer Pull 12

43

27 18

Promotional Schemes

Brand Name

The attributes that influence a retailer to keep a particular brand of soft drink are pro motional schemes brand name consumer pill and company support. Out of these factors promotional scheme again is the major factor that influences any retailer to keep the stock of particular brands. Apart from this consumer pull and brand name acts are the major influencers for the retailers to keep stork of a particular soft drinks. One more factor which affects the retailers to keep stock of particular soft IIMS-MBA 2010-12 Page 90

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drinks is the company support which is provided in from of visi coolers, banners, sign boards etc. through the kind of company support provided by the majors is almost the same.

GRAPH NO:-2.6 Does the promotional scheme of the company have any effect on the sales of soft drinks brands?

No 29%

Yes 71%

INTERPRETATION:-

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As sighted in the above analysis, sale of any soft drink is very much affected by the promotional schemes provided by the company to the retailers. These schemes act as the push towards the sales for any soft drink brands.

6. FINDINGS, SUGGESTIONS AND CONCLUSIONS FINDINGS


CONSUMER PERCEPTIONS
Soft drinks come under the category of products purchased on impulse. Through

the markets is marred by brand loyalty the purchase decision itself is a low involvement decision. This attitude of impulse buying is slowly changing to occasion-led-buying and also to some extent to consumption through home refrigerator particularly in urban areas.
The market is slowly moving from non-alcoholic carbonated drinks to fruit based

drinks and also to plain bottled water due to lower price and ready availability.
Consumers purchase soft drinks primarily to quench thirst. Therefore people

traveling and not having access to hygienic water reach out for soft drink. This accounts for a large part of the sales.
Brand awareness plays a crucial role in purchase decisions. Consumers prefer convenient and economy products.

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Availability in the chilled from affects the purchase decision.

This has made both companies to push its sales and to increase its retail distribution by offering Visi Coolers to retailers.
While there is no restriction on consumption of soft drinks by any age group, the

main consumers of this market are people in the age group of 30 and below.
Product differentiation is very low, as all the products taste the same. But brand

loyalty is high in the case of kids and people in the age group of 20-30 years.
Consumers are sensitive to the outlay where the purchase of beverages is

concerned. Hence the market is price sensitive.

Due to the high cost of soft drinks, a lot of times consumers prefer beverages like

tea, coffee or other drinks like sharbat and squashes.

RETAILERS PERCEPTIONS
Retailers stated that the consumers are loyal to the particular segment of the soft drink i.e. cola, orange or lemon. But as far the loyalty for the brands in each segment is concerned, it is not very significant. 43% of the retailers surveyed told that in soft drinks advertising is the key component in driving sales. While 32% stated promotional schemes and 20% brand loyalty as the reason.

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SUGGESTIONS

Although it is very early to suggest any thing to such a internationally renounced company like Coca-Cola having in the mature stat e of marketing yet for the local market, client distributors & retailers, based on the interactions & feed backs from various outlets, segments of customers I would like to suggest as under:

Company should promote good and heart felt Slogans and Jingles. Company should provide others small advertising items in the form of garlands, hangers recto the shopkeepers as there are cheap and Q good source of advertising. Company should sponsor important event like World cup, Asian & other tournament, any event related to film awards and programmers of local importance. Company, If possible should give schemes to the customers through newspapers having provision for discounts in purchasing its products. Company should organizing campaigns & distributes caps, Key rings, glasses, serving tray, passels on which company packages are branded.

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Chilling equipments should provide on a cost basis. Chilling equipments (like family freeze, vizzi or Electric bottle cooler) should be provided to the outlets

If there is any default found in the chilling equipment provided by the company should be repaired quickly when so required. Company should ensure good supply of stock. Company should go for more monopoly counters. There should be surprise check by the company to endure whether benefits of schemes provided by the company reach outlets or not and take corrective measures in case of default. Company should arrange seminars and meetings with dealers on an ongoing basis on monthly interval. A special shopkeepers care cell should be formed to listen the shopkeepers grievance on the lines of customer care cell. No. of hoardings should be increased. . Some free gifts should also be given on established Brands to stimulance the retailer.

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Company should elaborate public announcement on important days like Health day, Anti drug day world aids day etc. Company should tap colleges and school canteens. They should be given extra discounts as these outlets give potential long run customers to the company.

CONCLUSIONS

e have concluded from this detailed report that despite the fact Coca-cola currently occupies the market leadership position. The Sampling activity was a good first step into the area of Marketing and Sales. It gave good

amount of exposure mainly because after being trained, trainees were given an opportunity to carry out the process ourselves. I had a project on marketing strategy & survey of right execution for coca-cola in Bareilly. The research project work conduct in different area of Bareilly. This even helped in the polishing of communication skills, a must-have to survive and make it big in the present world. It even gave a good understanding of behavior of customers when placed in different situations. It was a good opportunity to work on the skill of patience, as a large number of customers were to be dealt with. It helped in developing the kind of relations one needs to uphold in the corporate world and it helped in building up the right attitude. Marketing strategy of Coca-cola is better than its main competitor. The market share of Coke product is higher than the other products.

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Thums-up is the leading brand of Coca-cola in different regions. Advertising campaign of Coca-cola can easily on sign board, banners at outlet. I found proper display of products in racks and in coolers. Sales of products are increasing rapidly at Bareilly market where I do work study.

BIBLOGRAPHY
BOOKS:Chunawall S.A. Kottler Philip Kothari C.R. Sherlerkar S.A. Schiff man Leon. G. : : : : : Essentials of Marketing Research Marketing Management Research Methodology Marketing Management Leslie Lazar Kaunk

Magazines: Business world Coca-cola company booklet Pepsi company Booklet Published Records of Coca-cola India today

Websites: www.coca-cola.com www.thecoca-colacompany.com IIMS-MBA 2010-12 Page 97

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www.ko.com www.pepsico.com www.google.com

Newspaper: Times of India Economic Times Business Standard

QUESTIONNAIRES FOR CONSUMERS


Name: Age Sex: Location:

1) Which Company brands of soft drink do you prefer? a) Coca Cola 2) Why do you prefer it? a) Adv. & promotion schemes c) Price b) Preference d) Easy Availability b) Pepsi

3) Which form of advertising and sales promotion strategies do you think is most effective for soft drink industry? a) Television Advertising c) Outdoor Advertising b) Newspaper Advertising d) Sales promotion schemes

4) According to you which companys advertising are more Creative and appealing?

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a) PepsiCo b) Coca-Cola

5) Do think the advertising done by the companies affects the sales of their respective soft drinks? a) Yes b) No

6) When you talk of soft drink advertising which all brands come to your mind? (Please specify in order of recall) ---------------------------------------------------------------------------------------------------------------------------------------------------------------

QUESTIONNAIRES FOR RETAILERS


1) Type of business is: a) Provision store c) Sweet Shop e) Tea Stall b) Hotel d) Dabha f) Any Other.

2) Which segment of soft drink consumer generally asked for? a) Cola c) Clear lemon e) Others 3) Why do think that a consumer ask for a particular brand of soft drink? a) Adv. & Promotional Activities c) Easy Availability 4) Major sale of soft drink is due to? a) Availability c) Brand Name b) Price d) Promotion Schemes b) Brand Preference d) Price b) Orange e) Cloudy Lemon

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5) What are the attributes that influence you to decide which brand of soft drink to keep? (Rank them on scale of 1-4). a) Company Support c) Brand Name b) Consumer Pull d) Promotion Schemes

6) Does the promotional scheme of the company have any effect on the sales of soft drinks brands? a) Yes b) No

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