Professional Documents
Culture Documents
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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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.
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(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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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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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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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.
3.3 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)
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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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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.
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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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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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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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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
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
Company
department
also
responsible
making
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.
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
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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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: -
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
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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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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SEGMENTATION
Channel Cluster Locality Income Grocery Eating & Drinking Convenience Low Medium High
Figure :- Segmentation Model
Outlet Volume
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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
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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and
convenience
kiosks:
Permanent
kiosks
within
the
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.
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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%.
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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.
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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
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
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.
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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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"..
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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.
product availability.
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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.
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Volume can be increased Interest level of consumers To take part in energetic festivals
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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
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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.
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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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
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.
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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.
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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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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.
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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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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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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.
The institutional advertising campaigns on the other hand, have these objectives. IIMS-MBA 2010-12 Page 69
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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.
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.
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.
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.
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.
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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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.
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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
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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Marketing strategy & survey of right execution for Coca-Cola Which brand of soft drink you prefer?
S ales
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.
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Price 21%
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)?
Others 6%
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
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
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?
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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Marketing strategy & survey of right execution for Coca-Cola Type of business?
Eatery 22%
Others 6%
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.
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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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
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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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).
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
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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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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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
Due to the high cost of soft drinks, a lot of times consumers prefer beverages like
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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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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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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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
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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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) ---------------------------------------------------------------------------------------------------------------------------------------------------------------
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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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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