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“IMPACT OF RED ON THE SALE OF COCA COLA

PRODUCT: A STUDY IN LUCKNOW MARKET”


2008 - 09

CHAPTER 1
Introduction:

The introduction of soft drink was due to necessity of traveling particular in the
absence of availability of reliable water. But meaning quietly changed with
changing in time. It has become so, popular commodity fashion & habit instead of
requirement of quenching thirst.

The Coca Cola Company is the largest manufacture, distributor and marketer of non
alcoholic beverages concentrates and syrups in the world. Finished beverages
products bearing company trademarks, sold in the United States since 1886 are
now sold in more than 200 countries. Along with Coca Cola, this is recognized as the
world’s most valuable brand. Coca Cola market four of the world’s top five
nonalcoholic sparkling brands, including Diet Coke, Fanta and Sprite. Coca Cola
Company has emerged as a global leader in the beverages sector. It has a variety of
products in the market which provides benefits to the customer as well as to the
government. The customer uses Coca Cola product for their refreshment as per the
requirement of their willingness. The Company provides large number of
employment in the form of jobs to the people working in our country. The
Government in return generates profits from the company as it is a multinational
company due to the induction of foreign investment policy adopted by the
government of India. Coca Cola also continues to broaden the range of low and no
colour alternatives that they provide to help people manage their colour intake.
They are offering an increasing variety of package sizes to allow customers to

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manage their consumption. They continue to expand its beverages with added
health and nutrition benefits such as vitamins and nutrients. Intense competition
between other companies and Pepsi in particular has characterized the soft drink
industry for decades. In this game of giant firm, Coca Cola dominated the soft drink
market throughout the 1950’s, 1960’s and the early 1970’s. It outsold Pepsi two to
one. Then this chess game switched to the international arena.

The Company business is in nonalcoholic beverages-principally sparkling beverages,


but also a variety of still beverages. Company manufacture beverages concentrates
and syrups, which company sell to bottling and canning operations, fountain
wholesalers and some fountain retailers as well as finished beverages, which
company sell primarily to distributors. Company owns or licenses more than 450
brands, including diet and light beverages, water, enhanced waters, juices and
juices drinks, teas, coffees, and energy & sports drinks. in addition, company has
ownership interests in numerous beverages joint venture, bottling and canning
operations, although most of these operations are independently owned and
managed. Ever Since, Coca-Cola India 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 country’s top international investors, having
invested more than US$ 1 billion in India within a decade of its presence and
further pledged another US$100 million in 2003 for its operations. Hindustan Coca
Cola Beverages Pvt Ltd., India division under Eurasia Operating Group has been
working on RED i.e. Right Execution Daily since FEB 2006.

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Coca Cola Company believes that its success depends on their ability to connect
with consumers by providing them with a wide variety of choices to meet their
desires, needs and lifestyles choices. Company success further depends on the
ability of their people to execute effectively, every day. Coca Cola product helps
the customer in an instant digestion process. However the customers are using
their product in order to feel energetic and refreshing. Whenever the customer
feels thirsty then they use the soft drink to quench their thirst instead of water.
Therefore the Company enables the employees to join hands to make the company
profit.

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CHAPTER 2

RESEARCH METHODOLOGY

2.1 INTRODUCTION
The management decision process has become complex and requires an effective
and full proof management information system. During the year of growing
complexities, the management needs more and more rigorous information to
reduce uncertainties involved in introducing new products and penetrating a new
market. Market research has today becomes an important component of the
marketing information system, to manage all areas of management in general
amount to marketing management in particular.
Marketing research is the collection, analysis and interpretation of facts and figures
pertaining to marketing management.

Marketing management needs essential information regarding products, prices,


market condition of demand and supply, customer’s need and desires, selling
methods, physical flow of goods, competitive decision, external marketing

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environment and other factors of marketing thus a systematic approach is applied


termed as research methodology. Glasser has defined “Market research is the
application of scientific method of the study of the factors that affects the buying
decision in a given market and the profitability of the business concerned”

2.2 RESEARCH METHODOLOGY:

Research methodology has many dimensions and research methods are integral
part of it. Research methodology has a wider scope than that of research methods.
Research methodology is systematic way for solving research problem. It is a
science of studying 'how Research is done scientifically.

It is essential for any researcher to know not only research techniques but also
research methodology. In research methodology we study the various steps that
are generally adopted by researcher in studying his research problem along with
logic behind them so that research results are capable of being evaluated either by
the researcher himself or by any other person.

2.3 TYPES OF RESEARCH:

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There are different types of research viz., analytical research, fundamental


research, quantitative research, qualitative research, conceptual research, empirical
research. Present study is a Exploratory study.

Exploratory Research: The researcher has to use facts or information already


available and analyze these to make a critical evaluation of the material.

2.4 SELECTION OF SUBJECT:

Selecting the subject of research is a crucial decision for the researcher. The idea of

the subject should be very clear in his mind. The selected subject should be clear

and precise and ambiguity should be avoided. In the present instance the subject

related for study consists of analyzing the impact of RED on the sale of coca-cola

product in patna market.

2.5 SELECTION OF TITLE:

The title given to the subject matter to research work should not be ambiguous; the

reader should be able to form an idea about the contents of the research work

after going' through its title. The title of this research work is Impact of “RED”-Right

Execution Daily on the sale of coca-cola product in patna market.

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2.6 RESEARCH OBJECTIVES:


Following are the various objectives of study
 To study marketing strategies adopted by coca-cola.
 To study customer satisfaction about coca-cola products.
 To study the effect of RED on boosting sales of coca-cola products.

2.7 SCOPE OF THE STUDY:

Study of Management of RED helps the management in the following ways:-

1. It improves management’s ability to plan and control the sales of Coca Cola.
2. It will certainly help the strategies for survival and growth of the Company.
3. It avoids wastage and underutilization of resources which can be employed
profitably.
4. It is relevant to inflows and outflows conditions of the Company.

2.9 DATA COLLECTION AND RELIABILITY OF DATA:

For this research work there is need of both Primary & Secondary
data. Here I have taken the Primary data which was collected from the
Customers.

The secondary data are those, which have already been collected by someone else
for other purpose. The data, which are secondary in the hands of one, may be

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primary for others. Here the Secondary data is collected from the company’s R&D
department.

2.10 LIMITATION OF THE REPORT

I found the following limitations during my actual project execution:-

o More stress was given on the primary data.


o The finding of the survey will be strictly based on the response of the
consumers, since it is difficult to ascertain the authenticity of the statements.
o All the observation and recommendation will be made on the feedback
obtained from the survey.

2.11 HYPOTHESIS:

After the researcher has collected the data and before starting work on it,
he forms a hypothesis. Hypothesis is the assumption made by the researcher about
the outcome of the study. Based on objectives following hypothesis was made.
Here the hypothesis formed is:

 Marketing strategy of Coca Cola beverages Pvt. Ltd is strong enough to


increase the profit and sales volume of the Company.
 Retailers and distributors are satisfied with the RED.
2.12 ANALYZING THE DATA:

The next step in the research process is to extract pertinent findings from the data.
The researcher tabulates the data and uses various financial tools to assess the
financial soundness of the company.

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2.13 FINDINGS

After analyzing the data and conducting various tests upon it the researcher
comes to know of certain facts. These facts are the findings of the study.

2.14 REPORTING

When the researcher finishes analyzing the data and various facts are found
out the research work is almost over. These findings are then summarized and
conclusions are drawn from it.

CHAPTER 3

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COMPANY PROFILE

3.1 EXECUTIVE SUMMARY

The Coca Cola Company was incorporated in September 1919 under the laws of the
State of Delaware and succeeded to the business of a Georgia Corporation with the
same name that had been organized in 1892. Coca Cola Company is one of
numerous competitors in the commercial beverages market. Of the approximately
53 billion beverage servings of all type of consumed worldwide every day.
Beverages bearing trademarks owned by or licensed to company account for
approximately 1.5 billion. Coca-Cola, the corporate nourishing the global
community with the worlds largest selling soft drink concentrates since 1886. Coca
Cola Company put his first step in India in 1952 but withdrew completely in 1977
due to change in Indian Government polices. Again returned to India in 1993 after a
gap of 16 years giving a new thumb up to the Indian Soft Drink Market. In the same
year, the Company took over ownership of the nation's top soft-drink brands and
bottling network. No wonder, their brands have assumed an iconic status in the
minds of the consumers.

Coca-Cola serves in India some of the most recalled brands across the world, which
include names such as Coca-Cola, Diet Coke, 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.

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The Company ranking up "firsts" in the introduction of Canned and PET soft drinks,
vending machines and backpack dispensers for crowds of cricket supporters.

Ever Since, Coca-Cola India 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 country’s top international investors, having invested
more than US$ 1 billion in India within a decade of its presence and further pledged
another US$ 100 million in 2003 for its operations.

RED, IN INDIA
Hindustan Coca Cola Beverages Pvt.Ltd., India division under Eurasia Operating
Group has been working on RED i.e. Right Execution Daily since FEB 2006. Coca Cola
Company believes that its success depends on their ability to connect with
consumers by providing them with a wide variety of choices to meet their desires,
needs and lifestyles choices. Company success further depends on the ability of
their people to execute effectively, every day.

COMPANY GOAL
Company goal is to use the Company’s asset –company brands, financial strength,
unrivaled distribution system, global reach and talent and strong commitment of

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our management and associates-to become more competitive and to accelerate


growth in manner that creates value for our shareowners.

3.2 COCA-COLA PORTFOLIO

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Glass PET Can Fountain

200 ml 500 ml 330 ml Various Sizes

500 ml + 100 ml
300 ml
free

500 ml 1L+ 200 ml free

1000 ml 1.5 L

2L

3.3 CHRONOLOGICAL INCIDENT IN THE DEVELOPMENT OF

SOFT DRINKS:-
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1798 The term "soda water" first coined.

1810 First U.S. patent issued for the manufacture of imitation


mineral waters.

1819 The "soda fountain" patented by Samuel Fahnestock.

1835 The first bottled soda water in the U.S.

1850 A manual hand & foot operated filling & corking device,
first used for bottling soda water.

1851 Ginger ale created in Ireland.

1861 The term "pop" first coined.

1874 The first ice-cream soda sold

1876 Root beer mass produced for public sale.

1881 The first cola-flavored beverage introduced.

1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.

1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta,


Georgia.

1892 William Painter invented the crown bottle cap.

1898 "Pepsi-Cola" is invented by Caleb Bradham.

1899 The first patent issued for a glass blowing machine, used
to produce glass bottles.

1913 Gas motored trucks replaced horse drawn carriages as


delivery vehicles.

1919 The American Bottlers of Carbonated Beverages formed.


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1920 The U.S. Census reported that more than 5,000 bottlers
now exist.

Early 1920's The first automatic vending machines dispensed


sodas into cups.

1923 Six-pack soft drink cartons called "Hom-Paks" created.

1929 The Howdy Company debuted its new drink "Bib-Label


Lithiated Lemon-Lime Sodas" later called "7 Up".

1934 Applied color lab

els first used on soft drink bottles, the coloring was baked on
the face of the bottle.

1952 The first diet soft drink sold called the "No-Cal Beverage"
a ginger ale sold by Kirsch.

1957 The first aluminum cans used.

1959 The first diet cola sold.

1962 The pull-ring tab first marketed by the Pittsburgh Brewing


Company of Pittsburgh, PA. The pull-ring tab was invented by
Alcoa.

1963 The Schlitz Brewing company introduced the "Pop Top"


beer can to the nation in March, invented by Ermal Fraze of
Kettering, Ohio.

1965 Soft drinks in cans dispensed from vending machines.

1965 The resaleable top invented.

1966 The American Bottlers of Carbonated Beverages renamed


The National Soft Drink Association.
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1970 Plastic bottles are used for soft drinks.

1973 The PET (Polyethylene Terephthalate) bottle created.

1974 The stay-on tab invented. Introduced by the Falls City


Brewing Company of Louisville, KY.

1979 Mello Yello soft drink is introduced by the Coca Cola


Company as competition against Mountain Dew.

1981 The "talking" vending machine invented.

3.4 THE VALUE CHAIN

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3.5 BUSINESS MODEL OF COCA-COLA

The Coca-Cola
Company

Manufactures Concentrate

Beverage Base & Syrup Bottler

Manufactures Finished

Bottle/Can Fountain syrup


Customer

Consumer

3.6 INTRODUCTION TO SOFT DRINKS IN INDIA


Gold Spot considered as the first soft drink, established 50 years ago before all
empowering Coca-Cola entered the company to dominate the scene. It faced no
competition and its euphoric image built up in western countries helped it get
ready clientele & glamour. Parle export private ltd. should be regarded as the first
Indian company introducing limca a lemon drink complimentary to their well
entiemched Gold Spot in 1970 which got moderate success. However, before this, it

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had also introduced Cola-Pepino which was withdrawn in face tough competition
from Coca-cola.

When Coca-cola bid farewell in 1977, Indian market was open for various cold
drinks and several companies came forward pushing the different in the market.
Parle people introduced their Cola-Thumps Up with a mightily bang saying “Happy
days are here again” as if happy days went away with Coca-cola pure drinks of
Delhi, also without loosing much time introduced pure drinks with Campa Orange
and Campa Lemon. Modern bakeries interested the market Double Seven, Mohan
Meakings with Marry and Pick Up & McDowell with Thrill, Rush and Sprint and
Indian Market where there was competition previously a cut throat competition
and heavy advertising was on. Each one was trying their best to be come under one
company with “A Class” products in the field of soft drink business, now after a long
gap; Govt. of India had given permission to the Coca-Cola to start their business in
India. Coca-Cola came with Parle to do business on the Indian soil. They are trying
best regaining its prestige which it had before.

3.7 GROWTH PROMOTIONAL ACTIVITIES

The government has adopted liberalized policies for the soft drink trade to give the
industry a boast and promote the Indian brands internationally. Although the

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import and manufacture of international brands like Pepsi and Coke is enhanced in
India the local brands are being stabilized by advertisements, good quality and low
cost. The soft drinks market till early 1990s was in hands of domestic players like
Campa, Thumps up, Limca etc but with opening up of economy and coming of MNC
players Pepsi and Coke the market has come totally under their control.

The distribution network of Coca Cola had6.5 lakhs outlets across the country in
FY00, which the company is planning to increase to 8 lakhs by FY01. On the other
hand Pepsi Co's distribution network had 6 lakhs outlets across the country during
FY00 which it is planning to increase to 7.5 lakhs by FY01.

3.8 MARKET BIFURCATION OF SOFT DRINKS

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers Non-alcoholic
soft drink beverage market can be divided into fruit drinks and soft drinks. Soft
drinks can be further divided into carbonated and non-carbonated drinks. Cola,
lemon and oranges are carbonated drinks while mango drinks come under non
carbonated category.

The market can also be segmented on the basis of types of products into cola
products and non-cola products. Cola products account for nearly 61-62% of the
total soft drinks market. The brands that fall in this category are Pepsi, Coca- Cola,
Thumps Up, Diet Coke, Diet Pepsi etc. Non-cola segment which constitutes 38% can
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be divided into 4 categories based on the types of flavors available, namely:


Orange, Cloudy Lime, Clear Lime and Mango.

non cola
product, 38
non cola product
cola product
cola
product, 62

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3.9 PRODUCTS & DISTRIBUTION

Coca Cola Company manufactures and sells beverage concerates, sometimes


referred to as “beverages bases” and syrups, including fountain syrups, and
finished beverages.

As used in this report:

 “Concentrates” means flavoring ingredients and depending on the


products, sweetners used to prepare syrups or finished beverages;
 “syrups” means the beverages ingredients produced by combining
concentrates and, depending on the product,
 sweetners and added water;
 “Fountain syrups” means syrups that are sold to fountain retailers, such as
restaurants, that use dispensing equipment to mix the syrups with
sparkling or still water at the time of purchase to produce finished
beverages that are served in cups or glasses for immediate consumption;
 “Sparkling beverages” means nonalcoholic ready to drink beverages with
carbonation, including energy drinks and carbonated waters and flavored
waters;
 “Still beverages” means nonalcoholic beverages without carbonation,
including non-carbonated waters, flavored waters& enhanced waters,
juices & juices drinks, teas, coffees, and sports drinks.

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3.10 MISSION, VISION & VALUES


Coca Cola mission, vision and values outline who they are, what they seek to
achieve, and how they want to achieve it. These provide a clear direction for the
Company and help ensure that they are all working toward the same goals.

MISSION
 Everything Coca Cola do is inspired by their enduring Mission:
 To Refresh the World...in body, mind, and spirit.
 To Inspire Moments of Optimism...through their brands and their actions.
 To Create Value and Make a Difference...everywhere they engage.

VISION
To achieve sustainable growth, Coca Cola has established a Vision with clear
goals:

 Planet : Being a responsible global citizen that makes a difference.


 Portfolio: Bringing to the world a portfolio of beverage brands that
anticipate and satisfy Peoples' desires and needs.
 Partners: Nurturing a winning network of partners and building mutual
loyalty. Profit: Maximizing return to shareowners while being mindful

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of our

VALUES
Coca Cola is guided by shared Values that they will live by as a company and as individuals:

 Leadership : “The courage to shape a better future”

 Passion : “Committed in heart and mind”

 Integrity : “Be real”

 Accountability : “If it is to be, it's up to me”

 Collaboration : “Leverage collective genius”

 Innovation : “Seek, imagine, create, delight”

 Quality : “What we do, we do well”

3.11 GET TO KNOW OUR LEADERS

Leading the Industry & Refreshing the World Responsibly


Since Coca Cola first soda fountain sales in 1897,
they have been a driver of marketplace innovation
and an investor in local economies. Today they lead
the beverage industry with over 450 brands --
including four of the world's top-five sparkling

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brands. But while their business opportunities are


enormous, their commitment to their consumers
and the communities in which they operate is even
greater.

E. Neville Isdell, named chairman and chief


executive officer in June 2004, leads them into the
new century with a firm commitment to the values
and spirit of the world's greatest brand. With his
proven leadership and the talent and experience of
their management team, they will continue our
mission to provide quality beverages while helping
to improve lives around the world.

Board Of Directors:

E. Neville Isdell : - 12th Chairman of the Board of Directors & CEO.

Muhtar Kent : - President & Operating Officer.

Herbert A. Allen : - President & CEO Allen & Company Inc.

Ronald W. Allen : - Advisory Director, Former Chairman of the Board Allen & Co.

Cathleen P. Black : - President, Hearst Magazines

Barry Diller : - Chair of the Board & CEO Inter Active Corp.

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Alexis M. Herman : - Chair & CEO New Ventures,LLC.

Donald R. Keough : - Non Executive Chair of the Board Allen & Co. Inc.

Donald F. McHenry : - Distinguished Proff. In the Practice of Diplomacy &Internal

Sam Nunn : - Co-Chair & CEO Nuclear Threat Initiative.

James D. Robinson III : - General Partner, RRE Ventures, President, J. D. Robinson, INC.

Peter V. Ueberroth : - Investor & Chairman, Contrarian Group Inc.

Jacob Wallenberg : - Chair of the Board, Investor AD.

James B. Williams : - Former Chairman of the Board & CEO Sun Trust Bank Inc.

3.12 BEVERAGE PRODUCTS

Coca Cola Company continues to expand Its beverage portfolio, as well as packaging
options and sizes, in order to meet consumers' evolving needs and preferences.
Coca Cola currently offer more than 2,800 beverage products around the world.

In addition to sparkling drinks, Coca Cola increasingly offer juice and juice drinks,
waters, sports and energy drinks, teas and coffees, soy-based drinks and beverages
with added nutritional benefits. They market four of the world's top five
nonalcoholic sparkling brands: Coca-Cola®, Diet Coke®, Sprite® and Fanta®. In 2006,
Coca Cola globally ranked:
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 No. 1 in Sales of Juice and Juice Drinks


 No. 1 in Sales of Ready-to-Drink Coffees and Teas
 No. 2 in Sales of Sports Drinks
 No. 3 in Sales of Water

Coca cola also continue to broaden the range of low- and no-calorie alternatives
that they provide to help people manage their caloric intake. And they offer an
increasing variety of package sizes to allow consumers to manage their
consumption. they continue to expand into beverages with added health and
nutrition benefits such as vitamins and nutrients. Some examples around the world
include the following:

 Health Works in Hong Kong


 Ipsei in Germany
 Minute Maid with added Vitamin D in the U.S.
 Odwalla in the U.S.
 Minute Maid ready-to-drink milk beverages in Mexico
 Aquarius Active Diet functional water supplement in Japan

They are also conducting exploratory programs to help address malnutrition with
fortified products. Scientists working with their Beverage Institute For Health and
Wellness developed Nurisha, a water-soluble powder of 12 vitamins and minerals
to add to beverages, and conducted clinical trials in Botswana and Peru. Their first
beverage fortified with Nurisha is now in trials in South African schools, and they
are looking for opportunities to expand it and other fortified beverages in other
countries.
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3.13 SWOT ANALYSIS

Strength
Coca Cola competitive strengths include leading brands with a high level of
consumer acceptance, a worldwide network of bottlers & distributors of company
products, sophisticated marketing capabilities; & a talented group of dedicated
associates.

Weakness
Sales of Coca Cola ready-to-drink nonalcoholic beverages are somewhat seasonal,
with the second & third calendar quarters accounting for highest sales volumes.
The volume of sales in the beverages business may be affected by weather
conditions.

Opportunities
Over the next several years Soft Drinks Industry’s growth is expected to out pace
the growth of the world economy. By 2010 is projected to eclipse $650 billion in
total revenue. There is tremendous opportunity to grow our sparkling beverages in
both developed & emerging markets.

Threats
Coca Cola Company competes in the nonalcoholic beverages segment of the
commercial beverages industry. Based on internally available data & a variety of
industry sources, Coca Cola believe that in 2007, worldwide sales of Company
products accounted for approximately 10% of total worldwide sales of nonalcoholic

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beverages products. The nonalcoholic beverages segment of the commercial


beverages industry is highly competitive, consisting of numerous firms.

A STRONG YEAR
The following pages tell the story of a company delivering consistent performance
that is well-balanced across markets, categories, customers and products -- a
company that is moving forward with a clear strategic agenda. In 2007, The Coca-
Cola Company earned $2.57 per share, an increase of 19 percent. Unit case volume
grew 6 percent. And net operating revenues grew 20 percent to $28.9 billion.

We took several key steps in 2007, including

 strengthening our sparkling portfolio with new brands and brand


extensions;
 expanding our still portfolio with strategic acquisitions and innovations;
 improving our capabilities in consumer marketing, commercial leadership
and franchise leadership;
 Creating a more sustainable future through more efficient energy, water
and operational practices.

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3.14 BUILDING OUR CAPABILITIES

A year ago in this report, we said we were going to fuel growth by creating
inspirational consumer marketing, providing enhanced value to millions of retail
partners and to our bottling partners, who make up the world's largest and most
powerful beverage distribution network.

The men and women of The Coca-Cola Company, working closely with our
dedicated bottling partners around the world, delivered on our commitments with
great discipline and skill. Our product mix is the strongest it has ever been, our
innovation pipeline is growing, and our brands are winning again at the point of
sale.

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Our progress in consumer marketing and commercial leadership has renewed


interest in our expanding portfolio among shoppers, retail customers and our
bottling partners. Creative marketing is part of our DNA and has always been our
core competency in eras of success.

In the past year, with "The Coke Side of Life," Happiness Factory-The Movie and
other award-winning marketing programs, we reinvigorated the energy and
optimism at the heart of our brands. We also invited our consumers to experience
the magic and history of the world's most valuable brand at the highly successful
new World of Coca-Cola, which opened this past year in Atlanta.

3.15 ENHANCING THE COMMUNITIES WE SERVE

We recognize that we cannot have a healthy and growing business unless the
communities we serve are sustainable themselves. Careful consideration of
environmental, economic and social factors plays into all our decision making and

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resulted in a number of new partnerships to support the health of our business and
our planet. Across the Coca-Cola system, we made significant progress in reducing
our water, packaging and energy imprint.

Water is essential to our business. In 2007, we set the ambitious goal to return the
water we use, in our beverages and in their production, back to nature. And our
expanded global partnership with World Wildlife Fund (WWF) aims to help
conserve seven of the world's most important watersheds, as well as to further
improve water efficiency in our operations and strengthen our climate protection
initiatives. Additionally, we signed The CEO Water Mandate, a partnership with the
United Nations Global Compact that commits companies to help protect and
preserve freshwater resources by making water-resource management a strategic
priority throughout their operations and supply chain.

We see packaging not as waste, but as a valuable resource for future use. In 2007,
we established a goal of recycling or reusing 100 percent of our PET* packaging in
the United States. We took an important step toward this goal through a major
investment in the world's largest PET bottle-to-bottle recycling plant in South
Carolina and the launch of a new recycling business called Coca-Cola Recycling LLC
led by our bottling partner, Coca-Cola Enterprises Inc. In India, we are partnering
with the Indian Association of Plastic Manufacturers in significant PET recycling
initiatives in more than 100 locations across the country. And in Brazil, which
recycles nearly 50 percent of PET containers, the Company remains a long-time
supporter of CEMPRE, a nonprofit association dedicated to the promotion of
recycling and waste management.

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We also are scaling up our efforts to reduce carbon emissions. We are committed
to growing our business, without growing our carbon footprint. In 2007, we
launched Project ESKO to reduce emissions in manufacturing and drive productivity
improvements. For example, at our 2-million-square-foot world headquarters in
Atlanta, we are working to reduce energy consumption by 23 percent. These efforts
are expected to eliminate more than 10,000 metric tons of carbon dioxide
emissions each year, which is the equivalent of removing 2,000 cars from the road.
And we are using our voice on the world stage to call for responsible standards on
greenhouse gas emissions through our support of the United Nations Global
Compact “Caring for Climate” leadership platform and the “Bali Communiqué.”

*Polyethylene terephthalate (PET)

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Our commitment to being a responsible company includes being a responsible


employer. In 2007, we launched our global Workplace Rights Policy and Human
Rights Statement, guided by the principles of the International Labour.

Organization and other well-known international organizations. Our Workplace


Rights Policy formalizes our long-standing commitment to ensure that each of our
90,500 associates around the world is treated with dignity and fairness.

3.16 THE ROAD AHEAD

To reach our peak performance in 2008, we will focus on five strategic priorities:

First, we will continue to grow our leadership in sparkling beverages, the core of
our business today and tomorrow. We know there is tremendous opportunity to
grow our sparkling beverages in both developed and emerging markets. Second, we
will drive even faster growth in our still beverage portfolio by adding new functional
benefits, developing affordable formulations, pursuing relevant bolt-on acquisitions
and seeking margin enhancements. Juice and juice drinks, sports drinks, water,
coffees, teas and emerging categories offer exciting opportunities for future growth
around the world.

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Second, we will continue to generate and take advantage of the balanced growth
we have achieved across our portfolio and the markets we serve. In the world's
emerging economies, our business is buoyed by growing urbanization, rising
middle-class consumers and the corresponding conversion to ready-to-drink
beverages that meet new lifestyle needs. In North America, our flagship market, we
will continue to focus on renewing the health of our business.

3.17 OPERATING GROUP


The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating
Groups: Africa, Eurasia, European Union, Latin America, North America, Pacific,
Bottling Investments. Certain prior year amounts have been reclassified to conform
to the current year presentation.

1) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB)


Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" and recorded
an approximate $65 million increase in accrued income taxes in their consolidated
balance sheet for unrecognized tax benefits, which was accounted for as a
cumulative effect adjustment to the January 1, 2007 balance of reinvested earnings.
2) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)
No.158, "Employers' Accounting for Defined Benefit Pension and Other
Postretirement Plans -- an amendment of FASB Statements No. 87, 88, 106, and
132(R)."
3) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and
Disclosure Guidance for the Foreign Earnings Repatriation Provision within the

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American Jobs Creation Act of 2004" in 2004. FSP No. 109-2 allowed the Company
to record the tax expense associated with the repatriation of foreign earnings in
2005 when the previously unremitted foreign earnings were actually repatriated.
4) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable
Interest Entities," effective April 2, 2004.

3.18 ORGANIZATIONAL STRUCTURE

Coca Cola in India

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3.19 RED i.e... A Right Execution Daily

3.19.1 CONCEPT OF RED

Hindustan Coca Cola Beverages Pvt Ltd., India division under Eurasia Operating
Group has been working on RED i.e. Right Execution Daily since FEB 2006.

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Coca Cola Company believes that its success depends on their ability to connect
with consumers by providing them with a wide variety of choices to meet their
desires, needs and lifestyles choices. Company success further depends on the
ability of their people to execute effectively, every day.

3.19.2 DETAIL ANALYSIS OF RED: -

Right Execution Daily is segregated under three important point they are as follows:

VisiCooler: -

Visicooler is the Sales Generating Assets, which not only make the beverages
product chilled which the company served its customers at the purchase point but
also attract the number of shoppers or consumers in a given universe to buy
company products.

 In the visicooler, attention are given on the following points: -

 The visicooler is as per standard or not.

 The visicooler as per prime position or not.


 Is the visicooler in a working condition?

 Is the visicooler light working?

 Is the visicooler 100% pure?

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 Is the visicooler brand order compliant?

Availability: -

Under Availability, company ensures that their all products are available at the shop
as per the standards of the company to serves the consumers or the shoppers. The
main focuses of Availability are as follows: -

 The company products are available at the shop in full flavor & range.
 Consumers have enough choice to select the company’s beverage products
as per their desire.
 10 to 15% of total shoppers are those who drink only particular brand &
particular brand & particular flavor. So, company doesn’t want to loose that
consumer also.

Activation: -

Activation is the important ingredients under RED. It is a techniques by which the


sales are generated. It is a complex set of activity by which the shoppers are
stimulated to come at the shop. By proper activation buyers are induced to come at
the purchase point.

3.19.3 Important tools for activation

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Important tools for activation are Counter Top, Aerial Mobile Hanger, Crate Display,
Road Standee, Flange, Signage, Branded Menu Cards, Combo Communication, Flex
or Glow Sign Board, Three Tire Display Rack, Price Communication.

Under the Activation, the attention is given to ensure the


following points at the purchase point: -

 Prices of HCCBPL products communicated in a clear & visible manner.

 DPS/Flex Board/Glow Sign Board, Flange, or Road Standee, at least 1,


should be in a proper condition.

 Ariel Mobile Hanger with at least 4 mobiles displayed at stores front in


Convenience Stores.

 OBM/Drinking Shot Communication present at each store.

 Table Top display unit/Hanging Rack, at least 1 should be pure & should be
at least 50% charged in Convenience Stores.

 Self Display Rack in which minimum 8 facings of any PET displayed &
visible in Grocery.

 Rack should be pure & should be at least 50% full in Grocery.

 Combo Communication should be present in E&D.

 Branded Menu Cards with KO (cola) Beverages Menu (at least 5 Menu
Cards)/Menu Board (at least 1) with KO beverages listing.

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3.19.4 TOOLS USED FOR CONTROL UNDER RED

 Market Developer RED Tracker

 Survey conducted by Individual Agency

Market Developer RED Tracker

It is a tool by which the Market Developer, checks its performance. It shows


where the Market Developer is put their efforts, by which the RED Score will be
increasing. It throws light on, where are the Execution Team lacking. It also aids
to the Management in tuning the Market Execution Team. There are two parts of
the Market Developer RED tracker: -

 Market Developer Permanent Journey Plan

It is a tool, which fix the activities of the Market Developer for the given period.
In the Market Development Permanent Journey Plan, the information about the
following things is given: -

 Permanent Journey Plan for the Market Developer

 Name of the Market Developer

 Distributor/Direct Route Name

 Sales Team Leader Name

 Sales Trainer Name

 The Town/City where the execution plans are executed.

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 Month of the Execution Plan

 No. Of Outlet visited at a particular date


 Daily Market Report

It is a survey conduct by the Market Developer himself. Market Developer


has to prepare this Report before he starts his execution activities at the
Customer Place. It helps to get the actual figure & also help to check the

execution impact of the previous day.

3.19.5 RED SCORING

RED Scoring is the techniques by which the quality of services & performance
executed by the company’s personnel are enumerated in terms of numbers.

The total marks assigned under RED are 100 and these total marks are segregated
among the three factors of the RED, which are as follows: -

VISICOOLER = 30 MARKS

AVIABILITY = 50 MARKS

ACTIVATION = 20 MARKS

For RED Scoring sheet: Please refer Appendix…Point No. 7.3

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3.20 CASE STUDY OF COCA COLA

Coca Cola India has been working on RED (Right Execution Daily) since 2006. In
Patna Region RED was introduced in FEB 2006. RED is an integration of Sales
Management & Marketing Execution Plan. By this, company not only has been
increasing its Sales & Market Shares but it also has proved as a media for the
company to come closer to its Customers & Shoppers.

This case of Coca Cola Company is related to the Patna Region where the company
is the leader in the both the Market Shares & the Sales Volume. After RED was
introduced in Patna, the Company continuously tried to improve its RED Score
Card.

Its RED Score Card shown in April 2008, in Patna Region (especially Exhibition
Road, Pirmohani, Goriatoli & New Market) was 34.5% (Approx), which was not
near to the Standard i.e. 50, fixed for the month.

The Standard for the month May was fixed 60 by the Sales Management for this
Region. But the result was negative for this month i.e. 22.3%(approx). The RED
Score declined by 63% in this month as it was fixed by sales management.

It put extra pressure on Sales Execution Team to uplift this Score in the month of
June. So, it was the challenge for the Sales Execution Force to regain its prestige but
still they didn’t achieve the minimum Standard of 60% but somehow manage the
score 31.1% which was increased from the previous month.

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3.21 SURVEY REPORT CONDUCTED BY INDIVIDUAL


AGENCY

FOR THE MONTH MARKS


APRIL 34.5
MAY 22.3
JUNE 30.1

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CHAPTER 4

DATA COLLECTION, ANALYSIS & INTERPRETATION

4.1 INTRODUCTION:

Both Primary as well as secondary data has been collected. Here I am going to give
the analysis of Primary data first and then the analysis of secondary data will follow.

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4.2 ANALYSIS OF PRIMARY DATA:


Primary data is in the form of a questionnaire which has been collected by asking
civilians to fill in a questionnaire. Below given is the analysis of many of the
questions in the Questionnaire. The Questionnaire is present in the Appendix.

Question No. 1.a).…..Refer question in Appendix.

Analysis:

Table: On the basis of Age

Age No. of Persons % of Respondents

15 - 25 68 45.33%
26 - 35 41 27.33%
36 - 45 23 15.33%
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46 - 55 18 12.00% - 46 -
150 100%

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Table 4.2.1.a

Figure: On the basis of Age

Fig. 4.2.1.a

Interpretation:

In the above fig. I have done survey on the basis of age group15-25, 26-35,
36-45, 46-55 where the no. of consumers are 68, 41, 23, 18 respectively.

Question No. 1.b)……..Refer question in Appendix.

Analysis:

Table: On the basis of Gender

Gender No. of Persons


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Male 120
Female 30
Total 150
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Table 4.2.2.b

Figure: On the basis of Gender

Fig. 4.2.2.b

Interpretation:

In the above fig. the respondents are grouped on the basis of gender in which
male corresponds to 120 and female 30.

Question No. 1.c)……..Refer question in Appendix.

Analysis:

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Table: On the basis of Occupation

Occupation No. of Persons

Student 45
Others 29
Servicemen 46
Businessmen 30
Total 150 Table 4.2.3.c

Figure: On the basis of Occupation

Fig. 4.2.3.c

Interpretation:

In the above fig. respondents are classified on the basis of occupation in which
there are 45 students, 46 servicemen, 30 businessmen and the rest 29.

Question No.2……..Refer question in Appendix.

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Analysis:

Table: On the basis of Preference

Yes / No No. of Respondents

Yes 131
No 19
Total 150
Table 4.2.2

Figure: On the basis of Preference

Fig. 4.2.2

Interpretation:

In the above fig., 131 repondents take beverages and the rest don’t prefer to
take.

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Question No. 3……..Refer question in Appendix.

Analysis:

Table: On the basis of Choice

Type of Cold Drink No. of Respondents

Coca-Cola 57
Pepsi 31
Frooti 39
Others 23
Total 150 Table 4.2.3

Figure: On the basis of Choice

Fig. 4.2.3

Interpretation:

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In the above fig., most repondents (i.e) 57, prefer to take Coca Cola , 39 Frooti, 31
Pepsi and others 23.

Question No. 5……..Refer question in Appendix.

Analysis:

Table: On the basis of Likeness

Type of Cold Drink No. of Respondents

Thumps Up 45
Coca Cola 30
Sprite 22
Maaza 53
Total 150 Table 4.2.5

Figure: On the basis of Likeness

Fig. 4.2.5

Interpretation:

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In the above fig., 53 people like to take Maaza, 45 Thumps up, 30 Coca Cola and
22 Sprite.

Question No. 6……..Refer question in Appendix.

Analysis:

Table: On the basis of characteristics

Characteristics No. of Respondents

Quality 40
Taste 78
Benefit 10
To quench thirst 22
Total 150 Table 4.2.6

Figure: On the basis of characteristics

Fig. 4.2.6

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Interpretation:

In the above fig., almost everyone prefers to take the beverages on th basis of
Taste, then quality, thirdly to quench thirst and lastly for its benefits.

Question No. 7……..Refer question in Appendix.

Analysis:

Table: On the basis of Sources of Beverages

Sources No. of Respondents

Advertising 100
Friends 39
Newspapers 01
Others 10
Total 150 Table 4.2.7

Figure: On the basis of characteristics

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Fig. 4.2.7

Interpretation:

In the above fig., consumers know about the product thru advertising that is 100
respondents, 39 thru friends, 1 thru newspapers and the rest from other means.

Question No. 8……..Refer question in Appendix.

Analysis:

Table: On the basis of Urge(“ Prefer More Often”)

Type of Cold Drink No. of Respondents

Thumps Up 43
Limca 12
Fanta 12
Maaza 37
Sprite 21
Coca Cola 25
Total 150
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Table 4.2.8

Figure: On the basis of Urge(“ Prefer More Often”)

Fig. 4.2.8

Interpretation:

In the above fig., 43 prefer to take Thumps up and the 2’nd is 37 Maaza Fans

Question No.10……..Refer question in Appendix.

Analysis:

Table: On the basis of Satisfaction of availability

Satisfaction of No. of Respondents


availability
Yes 113
No 37
Total 150
Table 4.2.10

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Figure: On the basis of Satisfaction of availability

Fig. 4.2.10

Interpretation:

In the above fig., 113 respondents are satisfied with the availability offered by the
Coca Cola Company and the rest don’t prefer it.

Question No.11……..Refer question in Appendix.

Analysis:

Table: On the basis of right condition of product

Right condition of No. of Respondents


Product
Yes 113
No 37
Total 150
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Table 4.2.11

Figure: On the basis of right condition of product

Fig. 4.2.11

Interpretation:

In the above fig., 113 respondents find Coca Cola product in the right condition
and 37 didn’t find it.

Question No.13……..Refer question in Appendix.

Analysis:

Table: On the basis of problem with the price tag affixed

Problem with the No. of Respondents


price tag affixed
Yes
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No 51
Can’t Say 35
Total 150
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Table 4.2.13

Figure: On the basis of problem with the price tag affixed

Fig. 4.2.13

Interpretation:

In the above fig., 64 repondents have issues regarding the price affixed by the
Company and 51 are not while the rest are in doubt.

Question No.14……..Refer question in Appendix.

Analysis:

Table: On the basis of factor

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Factor No. of Respondents

Person Factor 64
Advt. Factor 20
To remain Chill 50
Parties 16
Total 150 Table 4.2.14

Figure: On the basis of problem with the factor

Fig. 4.2.14

Interpretation:

In the above fig., 64 repondents take beverages on the personal front while 50
others take it to remain chill while the others take it on other basis.

Question No.15……..Refer question in Appendix.

Analysis:

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Table: On the basis of purchase quantity

Quantity No. of Respondents

200 ml 74
300 ml 44
500 ml 22
1.5 litres 10
Total 150 Table 4.2.15

Figure: On the basis of purchase quantity

Fig. 4.2.15

Interpretation:

In the above fig. 74 respondents take 200ml while 300ml is preferred by 44


others, 500ml by 22 others and the rest 10 on 1.5 litres.

Question No.17……..Refer question in Appendix.

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Analysis:

Table: On the basis of purchase decisions

Decision Maker No. of Respondents

Own Judgement 95
friends 24
Family Members 12
Shopkeeper 14
Any Other 05 Table 4.2.17
Total 150
Figure: On the basis of purchase decisions

Fig. 4.2.17

Interpretation:

In the above fig., 95 people take it on own judgment, 24 by friends, 14 by


shopkeepers, 12 by family members and the rest five members.

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Question No.18……..Refer question in Appendix.

Analysis:

Table: On the basis of brand switching

Go for Brand No. of Respondents


Switching?
Yes 93
No 35
Can’t Say 22
Total 150
Table 4.2.18

Figure: On the basis of brand switching

Fig. 4.2.18

Interpretation:

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In the above fig., majority 93 will switch over to the other brand, 35 will not
switch over and the rest cant say anything.

Question No.19……..Refer question in Appendix.

Analysis:

Table: On the basis of awareness of promotional schemes

Awareness of No. of Respondents


Promotional Schemes
Yes 95
No 55
Total 150
Table 4.2.19

Figure: On the basis of awareness of promotional schemes

Fig. 4.2.19

Interpretation:

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In the above fig., 95 people are aware of the promotional schemes while he rest
are not aware.

Question No.20……..Refer question in Appendix.

Analysis:

Table: On the basis of activation board attraction

Go for Brand No. of Respondents


Switching?
Yes 75
No 36
Didn’t Notice 39
Total 150
Table 4.2.20

Figure: On the basis of activation board attraction

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Fig. 4.2.20

Interpretation:

In the above fig., 75 people get attracted on account of activation boards while 36
don’t get attracted and the rest 39 didn’t notice it.

Question No.22……..Refer question in Appendix.

Analysis:

Table: On the basis of properly visualizing the visicooler

See Visicooler in No. of Respondents


proper order?
Absolutely 79
Yes, but not always 30
Hardly ever 13
Can’t say, maybe 21
Never 07 Table 4.2.22
Total 150
Figure: On the basis of properly visualizing the visicooler

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Fig. 4.2.22

Interpretation:

In the above fig., 79 see the visicooler in proper condition while the rest see it
frequently, 21 are unable to say, 13 see it hardly ever while the rest 7 never see.

CHAPTER 5

CONCLUSIONS & SUGGESTIONS

5.1 CONCLUSIONS:

The outcome of any research is the systematic and well conclusion (i.e) what
one can gain from it. This report is truly a unique specimen of the
aforementioned statement. Efforts in the form of Survey and survey data have
been collected after lot of hectic work spanning may days. So I have done my
level best in going ahead with this project and I take the honour of undertaking
this research.

After analysis & interpretation, I came to know that:

1) Most of the respondents prefer to take the beverage on the basis of taste.

2) Out of the whole lot of the Coca Cola products most of the people prefer
to take Maaza in Large quantities.

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3) Majority of the people know the beverages of Coca Cola thru


advertisements.

4) It is heartening to notice that the availability of the Coca Cola Product is


excellent.

5) The Coca Cola products are always found in its optimum condition in
which it is expected to be.

6) It has come to my notice that most of the customers are unsatisfied with
the price of the beverages.

7) Almost all the respondents take the beverages on the basis of personal
judgment.

8) Also it is good to observe that most of the people are aware of the
promotional schemes offered by the Company.

9) All the products in the Visicooler are kept in a systematic way(CLOJ).

10)It has been observed that most of the people visualize the activation
boards properly in front of the Outlets.

5.2 SUGGESTIONS:

1) Well, I would advise the Company to reduce the price affixed to each and
very of beverages so that all the classes and categories of the people can
have the pleasure of drinking the Coca Cola product.

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2) Most of the respondents wants to increase the flavours of the Coca Cola
Ionized beverages as they have been consuming the same flavor over a
period of time.

3) Promotion and promotional schemes need to be propagated in the rural


areas so as to tap the unsaid and unclaimed potential of the rural life and
habitat.

CHAPTER 6

BIBLIOGRAPHY

6.1 BOOKS

1) Philip Cotler, “Principle of Marketing Management”, 5th


Edition, Prentice Hall of India Pvt. Ltd., New Delhi.

2) Ramaswamy, “Marketing Management”,

6.2 WEBSITES

www.financialexpress.com

www.businessworld.com

www.cocacolacompany.com

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www.cocacolaindia.com

CHAPTER 7

APPENDIX

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7.1 Questionnaire

Dear Respondent,

A survey is being carried out on Impact of “RED-Right Execution


Daily” on the sales of Coca-Cola product: A case study of PATNA MARKET. It is the
part of my academic, which is carried under my Department of Business
Administration and Research, S.S.G.M.C.E.SHEGAON. I will be thankful if you would
please convey yours views on the following questions referred and Co-operate me
for bringing a grand success.

RAHUL TRIVEDI

[ M.B.A Marketing]

1. Consumer details:-
a) Name:-
…………………………………………………………………………
…………………………
b) Age:-
…………………………………………………………………………
……………………………

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c) Gender:-
…………………………………………………………………………
d) Occupation:-
…………………………………………………………………………
……………….
e) Address:-
…………………………………………………………………………
……………………
2. Do you take any beverage or not?
a) yes [ ] b) no [ ]
3. Which beverages do you prefer to take?
a) coca-cola [ ] b) pepsi [ ] c) frooti [ ] d) real juice [ ]
4. Do you know anything about flavours of beverages of coca-cola?
a) coke [ ] b) lemon [ ] c) orange [ ] d) juicy [ ]
5. Which flavour do you like the most?
a) thumps-up [ ] b) coca-cola [ ] c) sprite [ ] d) maaza [ ]
e) others [ ]
6. You take beverages on what basis?
a) quality [ ] b) taste [ ] c) benefits [ ] d) to quench thirst [ ]
7. From what sources you know about the beverages?
a) advertising [ ] b) friends [ ] c) newspapers [ ] d) others [ ]
8. Out of the beverages given below which one do you prefer more often:- a)
Thumps –up [ ] b) Limca [ ] c) Fanta [ ] d) Maaza [ ]
e) Sprite [ ] f) Coca-Cola [ ]

9. How many times do you consume the beverages in a day?


a)once [ ] b) twice [ ] c) thrice [ ] d) more than four times [ ]

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10. Are you satisfied with the availability offered by the coca-cola company of
the selected beverages types?
a) yes [ ] b) no [ ]
11. Do you find coca-cola product in the right condition when you ask for it? a)
yes [ ] b) no [ ]
12. Do you prefer to recommend the coca-cola beverages’ to your friends or
family members?
a) yes [ ] b) no [ ]
13. Do you have any problem regarding the price affixed by the price tag of
coca-cola product?
a) yes [ ] b) no [ ] c) can’t say [ ]
14. You take beverages on account of which factor?
a) personal factor [ ] b) advertisement impact [ ]
c) to remain chill [ ] d) parties [ ]
15. You purchases coca-cola bottles in what quantity?
a) 200ml [ ] b) 300ml [ ] c) 500ml [ ] d)1.5ltrs[ ]
16. Do you prefer to stock coca-cola product at homes to take a stand when you
desire?
a) yes [ ] b) no [ ]
17. Who is in your opinion taking decision relating to purchase?
a) own judgment [ ] b) friends [ ] c) family members [ ] d) shop
keepers [ ] e) any others [ ]
18. If the current brand is not available then will you switch over to the other
brand?
a)yes [ ] b) no [ ] c) can’t say [ ]
19. Are you aware of any promotional schemes offered by the company for you?

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a) Yes [ ] b) no [ ]

20. Do you visualize any attractions in the form of activation boards or hoardings
or banners in front or above the outlets in which cold drinks from the Coca
Cola Inc. are being sold?
a) Yes [ ] b) No [ ] c) Didn’t notice [ ]

21.Whether activation boards or hoardings or banners encourages you to


consume Coca-Cola?

a)Always [ ] b)Sometimes [ ] c)Rarely [ ]

22.When inside any Coca Cola Drink Outlet, do you see the Visicooler in proper
condition?

a) Absolutely [ ] b) Yes, but not always! [ ] c) Hardly ever [ ]


d) Can’t say, maybe! [ ] e) Never [ ]
23.Do you suggest any improvement in the current version of coca-cola beverages
(please specify):-………………………………....................................

………………………………………………………………………………………
………………………………..

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7.2 FINANCIAL OVERVIEW OF COCA-COLA COMPANY:


7.2.1 Unit Case Data

Year Ended December 31, 2007 2006 2005 2004 2003

Unit Case Volume (in


22.7 21.4 20.6 19.8 19.4
billions)

7.2.2 Selected Financial Data

Year Ended December 31, 20071 20062 20053 20043,4 2003

(in millions except per share data)

7.2.3 SUMMARY OF OPERATIONS

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Net operating revenues $ 28,857 $ 24,088 $ 23,104 $ 21,742 $ 20,857

Cost of goods sold 10,406 8,164 8,195 7,674 7,776

Gross profit 18,451 15,924 14,909 14,068 13,081

Selling, general and


10,945 9,431 8,739 7,890 7,287
administrative expenses

Other operating charges 254 185 85 480 573

Operating income 7,252 6,308 6,085 5,698 5,221

Interest income 236 193 235 157 176

Interest expense 456 220 240 196 178

Equity income -- net 668 102 680 621 406

Other income (loss) -- net 173 195 (93) (82) (138)

Gains on issuances of
-- -- 23 24 8
stock by equity investees

Income taxes 1,892 1,498 1,818 1,375 1,148

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Net income $ 5,981 $ 5,080 $ 4,872 $ 4,847 $ 4,347

Average shares 2,313 2,348 2,392 2,426 2,459


outstanding

Average shares
outstanding assuming 2,331 2,350 2,393 2,429 2,462
dilution

7.2.4 PER SHARE DATA

Basic net income $ 2.59 $ 2.16 $ 2.04 $ 2.00 $ 1.77

Diluted net income 2.57 2.16 2.04 2.00 1.77

Cash dividends 1.36 1.24 1.12 1.00 0.88

Closing market price


61.37 48.25 40.31 41.64 50.75
on December 31

7.2.5 TOTAL MARKET


VALUE OF COMMON $ 142,289 $ 111,857 $ 95,504 $ 100,325 $ 123,908
STOCK

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7.2.6 BALANCE SHEET DATA

Cash, cash equivalents


and current $ 4,308 $ 2,590 $ 4,767 $ 6,768 $ 3,482
marketable securities

Property, plant and


8,493 6,903 5,831 6,091 6,097
equipment -- net

Depreciation 958 763 752 715 667

Capital expenditures 1,648 1,407 899 755 812

43,269 29,963 29,427 31,441 27,410


Total assets

Long-term debt 3,277 1,314 1,154 1,157 2,517

Shareowners' equity 21,744 16,920 16,355 15,935 14,090

NET CASH PROVIDED


BY OPERATING $ 7,150 $ 5,957 $ 6,423 $ 5,968 $ 5,456
ACTIVITIES

7.2.7 Unit Case Data

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Year Ended December


2007 2006 2005 2004 2003
31,

Unit Case Volume (in


22.7 21.4 20.6 19.8 19.4
billions)

7.2.8 Selected Financial Data

Year Ended December


20071 20062 20053 20043,4 2003
31,

(in millions except per share data)

7.2.9 SUMMARY OF OPERATIONS

Net operating
$ 28,857 $ 24,088 $ 23,104 $ 21,742 $ 20,857
revenues

Cost of goods sold 10,406 8,164 8,195 7,674 7,776

Gross profit 18,451 15,924 14,909 14,068 13,081

Selling, general and


administrative 10,945 9,431 8,739 7,890 7,287
expenses

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Other operating
254 185 85 480 573
charges

Operating income 7,252 6,308 6,085 5,698 5,221

Interest income 236 193 235 157 176

Interest expense 456 220 240 196 178

Equity income -- net 668 102 680 621 406

Other income (loss) --


173 195 (93) (82) (138)
net

Gains on issuances of
stock by equity -- -- 23 24 8
investees

Income taxes 1,892 1,498 1,818 1,375 1,148

Net income $ 5,981 $ 5,080 $ 4,872 $ 4,847 $ 4,347

2,313 2,348 2,392 2,426 2,459

Average shares

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outstanding

Average shares
outstanding assuming 2,331 2,350 2,393 2,429 2,462
dilution

7.2.10 PER SHARE DATA

Basic net income $ 2.59 $ 2.16 $ 2.04 $ 2.00 $ 1.77

Diluted net income 2.57 2.16 2.04 2.00 1.77

Cash dividends 1.36 1.24 1.12 1.00 0.88

Closing market price


61.37 48.25 40.31 41.64 50.75
on December 31

7.2.11 TOTAL
MARKET VALUE OF $ 142,289 $ 111,857 $ 95,504 $ 100,325 $ 123,908
COMMON STOCK

7.2.12 BALANCE SHEET DATA

Cash, cash equivalents


and current $ 4,308 $ 2,590 $ 4,767 $ 6,768 $ 3,482
marketable securities

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Property, plant and


8,493 6,903 5,831 6,091 6,097
equipment -- net

Depreciation 958 763 752 715 667

Capital expenditures 1,648 1,407 899 755 812

43,269 29,963 29,427 31,441 27,410


Total assets

Long-term debt 3,277 1,314 1,154 1,157 2,517

Shareowners' equity 21,744 16,920 16,355 15,935 14,090

NET CASH PROVIDED


BY OPERATING $ 7,150 $ 5,957 $ 6,423 $ 5,968 $ 5,456
ACTIVITIES

7.3 RED SCHORING SHEETS

7.3.1 RED SCHORING SHEET (Diamond):

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About VisiCooler

Diamond

Q. E&D Grocery Convenience Remarks


No

1. Is a Coca Cola Visi/Chest-


cooler present?(if answeris
No. skip questions 2-7)

2. Is the Visi/Chest-cooler as 3 3 3 Low Income: 9/10.5/20cs &


per standard? Med/High Income20/30cs.For

Chest Cooler-10cs+

3. Is the visicooler in the prime 7 7 7 All channels: At Entrance &


position? Outside Shop. Additionally only
for E&D outlets-if full face visible
from main dining area. No point
for Chest Cooler.

4. Is the Visi/Chest-cooler in a 2 2 2 Should be able to chill products.


working condition? Switched off coolers deemed as
not working. If cooler is in
working condition & there is
power cut ,marked as working.

5. Is the Visicooler light 2 2 2 Light should switch on. No points


working? if light is in working condition,
but switch off. No points for

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Chest Cooler.

6. Is the Visi/Chest Cooler 10 10 10 Coolers should have only Coca


100% pure? Cola Company inside.

7. Is the Visi-cooler brand order 6 6 6 As per note on CLOJ-K brand


complaint? order. No points for Chest-
Cooler.

TOTAL 30 30 30

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7.3.2 RED SCHORING SHEET (Diamond): -

About Availability

Diamond

Q.No E&D Grocery Convenience Remarks

1. Sparkling Soft Drink (SSD) 20 20 Min. 6 bottles per brand


200 or 300 ml (Cola + 3) (Chilled). Can have Cola + 3 in
any pack size (200ml or
300ml).A mix packs
(200ml+300ml)wont be
allowed.

2. SSD, Mobile PET 500/600 12 18 12 Only SSD: Min 6 bottles per


ml (Cola +3) brand, Chilled for
E&D/Convenience, & Chilled or
warm for Grocery.

3. Maaza RGB (200 or 250 ml) 5 5 Min. 6 bottles (chilled) of either


of the pack (200 or 250 ml).

4. Maaza TP 200 ml available 3 3 Min. 6 packets chilled.

5. Juice Mobile (2 flavours) 6 6 6 Min.6 bottles (chilled).

6. Juice Large PET (2 6 Min. 6 bottles (Chilled or warm)


flavours)

7. Can (Diet Coke +1) 4 4 Min. 6 cans (chilled)

8. Large PET 1.25 ltr / 1.5 ltr / 20 Min. 6 bottles per brand
2 ltr (Cola + 3) (Chilled or Warm)

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TOTAL 50 50 50

7.3.3 RED SCHORING SHEET (Diamond): - About Activation


E&D

1. Branded Menu cards 5 Any one Should have KO


with KO Beverages Beverages Listing.
Menu (at least 5 Menu
Cards) /Menu Boards (at
least 1) with KO
Beverages Listing

2. Combo Communication: 5 At least One of the


Combo standee/Combo options given.
wall hanging/Menu
Board (at least 1 of the 3
options)

3. Flange, Road Standee, 3 At least One of the 4


Flex, GSB, (at least 1 of options given.
the 4).

Grocery
4. Is there a 3 tier Display
Rack with header
present? (If answer is
No, skip question 5).

5. Is the Rack Pure & 8 100% pure & at least 50%


Charged? (Should be charged & with header
pure & should be at otherwise no score
least 50% full).

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6. Shelf Display (other than 5 Should be arranged


Rack). Min. 8 facings of display.
any PET displayed &
visible.

Convenience
7. Table Top Display 5 Should be 100% pure ,
Unit/or hanging Rack (at charged at least 50% ,
least 1, should be pure moreover, it should be
& at least 50% charged). on /near the front
counter, where it is easily
visible to the customer

8. Aerial Mobile Hanger 5 With at least 4 mobiles


display at storefront.

9. DPS/Flex Board, GSB, 3 At least 1 should be in a


Flange, or Road proper condition.
Standee.

All
Channels

10. OBM/Drinking Shot 3 3 3 Can be a Separate


Communication. communication or a part
of any activation material
relevant to channel.

11. Are prices of HCCBPL products 4 4 4 Any price communication, either in


communicated in a clear & visible the form of Visi-Cooler price strips,
manner? poster menu boards, tent cards, etc.
Should communicate price of at least
the top 2 Packs (2 of
RGB/Mobile/Large PET/Juice
PET/Maaza RGB).

20 20 20
TOTAL

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7.3.4 RED SCHORING SHEET (Gold): -

About VisiCooler

Gold

Q. E&D Grocery Convenience Remarks


No

1. Is a Coca Cola Visi/Chest-


cooler present?(if answeris
No. skip questions 2-7)

2. Is the Visi/Chest-cooler as 3 3 3 Low Income: 9/10.5/20cs &


per standard? Med/High Income20/30cs.For

Chest Cooler-10cs+

3. Is the visicooler in the prime 7 7 7 All channels: At Entrance &


Outside Shop. Additionally only
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position? for E&D outlets-if full face visible


from main dining area. No point
for Chest Cooler.

4. Is the Visi/Chest-cooler in a 2 2 2 Should be able to chill products.


working condition? Switched off coolers deemed as
not working. If cooler is in
working condition & there is
power cut ,marked as working.

5. Is the Visicooler light 2 2 2 Light should switch on. No points


working? if light is in working condition,
but switch off. No points for
Chest Cooler.

6. Is the Visi/Chest Cooler 10 10 10 Coolers should have only Coca


100% pure? Cola Company inside.

7. Is the Visi-cooler brand order 6 6 6 As per note on CLOJ-K brand


complaint? order. No points for Chest-
Cooler.

TOTAL 30 30 30

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“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

7.3.5 RED SCHORING SHEET (Gold): -

About Availability

Gold

Q.No E&D Grocery Convenience Remarks

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“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

1. Sparkling Soft Drink (SSD) 20 20 Min. 6 bottles per brand


200 or 300 ml (Cola + 3) (Chilled). Can have Cola + 3
in any pack size (200ml or
300ml).A mix packs
(200ml+300ml)wont be
allowed.

2. SSD, Mobile PET 500/600 15 18 15 Only SSD: Min 6 bottles per


ml (Cola +2) brand, Chilled for
E&D/Convenience, & Chilled
or warm for Grocery.

3. Maaza RGB (200 or 250 ml) 6 6 Min. 6 bottles (chilled) of


either of the pack (200 or
250 ml).

4. Maaza TP 200 ml available 3 3 Min. 6 packets chilled.

5. Juice Mobile (2 flavours) 6 6 6 Min.6 bottles (chilled).

6. Juice Large PET (2 6 Min. 6 bottles (Chilled or


flavours) warm)

7. Large PET 1.25 ltr / 1.5 ltr / 20 Min. 6 bottles per brand
2 ltr (Cola + 3) (Chilled or Warm)

TOTAL 50 50 50

7.3.6 RED SCHORING SHEET (Gold): - About Activation

E&D

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Page 91

“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

1. Branded Menu cards 5 Any one Should have KO


with KO Beverages Beverages Listing.
Menu (at least 5 Menu
Cards) /Menu Boards (at
least 1) with KO
Beverages Listing

2. Combo Communication: 5 At least One of the


Combo standee/Combo options given.
wall hanging/Menu
Board (at least 1 of the 3
options)

3. Flange, Road Standee, 3 At least One of the 4


Flex, GSB, (at least 1 of options given.
the 4).

Grocery
4. Is there a 3 tier Display
Rack with header
present? (If answer is
No, skip question 5).

5. Is the Rack Pure & 8 100% pure & at least 50%


Charged? (Should be charged & with header
pure & should be at otherwise no score
least 50% full).

6. Shelf Display (other than 5 Should be arranged


Rack). Min. 8 facings of display.
any PET displayed &
visible.

Convenience
7. Table Top Display 5 Should be 100% pure ,
Unit/or hanging Rack (at charged at least 50% ,
least 1, should be pure moreover, it should be
& at least 50% charged). on /near the front
counter, where it is easily
visible to the customer

8. Aerial Mobile Hanger 5 With at least 4 mobiles


display at storefront.

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“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

9. DPS/Flex Board, GSB, 3 At least 1 should be in a


Flange, or Road proper condition.
Standee.

All
Channels

10. OBM/Drinking Shot 3 3 3 Can be a Separate


Communication. communication or a part
of any activation material
relevant to channel.

11. Are prices of HCCBPL products 4 4 4 Any price communication, either in


communicated in a clear & visible the form of Visi-Cooler price strips,
manner? poster menu boards, tent cards, etc.
Should communicate price of at least
the top 2 Packs (2 of
RGB/Mobile/Large PET/Juice
PET/Maaza RGB).

20 20 20
TOTAL

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“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

7.3.7 RED SCHORING SHEET (Silver): -

About VisiCooler

Silver

Q. E&D Grocery Convenience Remarks


No

1. Is a Coca Cola Visi/Chest-


cooler present? (If answer
is No. Skip questions 2-7)

2. Is the Visi/Chest-cooler as 3 3 3 Low Income: 9/10.5/20cs &


per standard? Med/High Income20/30cs.For

Chest Cooler-10cs+

3. Is the VisiCooler in the 7 7 7 All channels: At Entrance &


prime position? Outside Shop. Additionally only
for E&D outlets-if full face
visible from main dining area.
No point for Chest Cooler.

4. Is the Visi/Chest-cooler in a 2 2 2 Should be able to chill products.


working condition? Switched off coolers deemed as
not working. If cooler is in

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“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

working condition & there is


power cut, marked as working.

5. Is the VisiCooler light 2 2 2 Light should switch on. No


working? points if light is in working
condition, but switch off. No
points for Chest Cooler.

6. Is the Visi/Chest Cooler 10 10 10 Coolers should have only Coca


100% pure? Cola Company inside.

7. Is the Visi-cooler brand 6 6 6 As per note on CLOJ-K brand


order complaint? order. No points for Chest-
Cooler.

TOTAL 30 30 30

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Page 95

“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

7.3.8 RED SCHORING SHEET (Silver): -

About Availability

Silver

Q.No E&D Grocery Convenience Remarks

1. Sparkling Soft Drink (SSD) 20 20 Min. 6 bottles per brand


200 or 300 ml (Cola + 2) (Chilled). Can have Cola +
2 in any pack size (200ml
or 300ml).A mix packs
(200ml+300ml)wont be
allowed.

2. SSD, Mobile PET 500/600 15 18 15 Only SSD: Min 6 bottles


ml (Cola +1) per brand, Chilled for
E&D/Convenience, &
Chilled or warm for
Grocery.

I.I.P.S, DAVV, INDORE - 96 -

Page 96

“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

3. Maaza RGB (200 or 250 ml) 6 6 Min. 6 bottles (chilled) of


either of the pack (200 or
250 ml).

4. Maaza TP 200 ml available 3 3 Min. 6 packets chilled.

5. Juice Mobile (1 flavours) 6 6 6 Min.6 bottles (chilled).

6. Juice Large PET (2 6 Min. 6 bottles (Chilled or


flavours) warm)

7. Large PET 1.25 ltr / 1.5 ltr / 20 Min. 6 bottles per brand
2 ltr (Cola +1) (Chilled or Warm)

TOTAL 50 50 50

7.3.9 RED SCHORING SHEET (Silver): -About Activation


E&D

1. Menu Board (at least 7 Any of the 4


1)with KO Beverages options is ok.
Listing/Branded Menu
Cards with KO
Beverages Menu (at
least 5 menu cards)
/Combo
Communication/Table
Top Vinly

2. Outside Crate Display 3 At least One of the


(Min 3 crates with options given.
wrap).

3. Flange, Road Standee, 3 At least One of the


Flex, GSB, (at least 1 of 4 options given.
the 4).

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Page 97

“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

Grocery
4. Is there any Display Rack
with header present? (If
answer is No, skip
question 5).

5. Is the Rack Pure & 7 100% pure & at


Charged? (Should be least 50% charged
pure & should be at & with header
least 50% full). otherwise no score

6. Outside Crate Display. 3 Crate Wrap Must


(Min 3 crates with crate
wrap)

7. Shelf Display (other than 3 Should be an


rack ,min 8 facing of any arranged display.
PET displayed &
visible).

Convenience
8. Table Top Display 7 Should be 100%
Unit/or hanging Rack (at pure , charged at
least 1, should be pure least 50% ,
& at least 50% charged). moreover, it should
be on /near the
front counter,
where it is easily
visible to the
customer

9. Aerial Mobile Hanger 3 With at least 4


mobiles display at
storefront.

10. DPS/Flex Board, GSB, 3 At least 1 should be


Flange, or Road in a proper
Standee. condition.

All
Channels

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Page 98

“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

11. OBM/Drinking Shot 3 3 3 Can be a Separate


Communication. communication or a
part of any
activation material
relevant to channel.

12. Are prices of HCCBPL products 4 4 4 Any price communication,


communicated in a clear & visible either in the form of Visi-
manner? Cooler price strips, poster
menu boards, tent cards, etc.
Should communicate price of
at least the top 2 Packs (2 of
RGB/Mobile/Large PET/Juice
PET/Maaza RGB).

20 20 20
TOTAL

7.4 Outlets Of Training Area


S.N0. Exhibition Road Pirmohani & New Market
Goriatoli
1 Gupta Pan - C./G Uma Cinema-C/D Vijay Paan-C/D

2 Gaurav Res. – E.&D / G Gariblal-C/D H.K. Pan-C/D

3 Talkwell-C/G Patna Dairy-C/D Hayat GEN.-C/G

4 Rajdarbar-E&D/G Dadiji Rest-C/S Shamim-C/D

5 Shivam Kirana-C/G Bharat Paan-C/S Sonu Gen.-C/G

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Page 99

“Thanda Matlab, Coca Cola”


“IMPACT OF RED ON THE SALE OF COCA COLA
PRODUCT: A STUDY IN LUCKNOW MARKET”
2008 - 09

6 Hotel Republic-C/S Galaxy Cigg.-C/S Royal pan- C/D

7 Biryani House-C/S Jagdamba Gen.-C/S Mohan Pan- C/S

8 Bahadur Litti-C/S Prem Hotel-C/S Om Jarda-C/S

9 Pradeep Gen.-Gr./S Preety Paan-C/S Banarsidoodh-C/S

10 JJ STD-C/S Radhekrishna Gen.-C/S Bihar Kirana-C/D

12 Amininfront-C/S Vinod Cigg.C/S Aftab Gen.-C/D

13 Ice & milkbar-C/S Gopal Lassi-C/S Shahbudin Gen.-C/S

14 Gift corner-C/G Gyan Ganga-C/S Parvati Gen.-Gr./D

15 Sweta Gen.-C/G Prasad Pan-C/S Shankar Lassi-C/D

16 Baba Kirana-C/G Manish Paan-C/S Supershahi- C/D

17 Vishno Hotel-C/D Pankaj Gen.-C/D Urmila Med.-C/D

18 Nandkishore Hotel-C/D Gupta Paan-C//S Jaimaa Shakti-C/S

19 Windsor Rest.-E&D/D Sai STD-C/S Rajdhani Hotel-


E&D/D

20 Ramfal Paan-C/D Naina Gen.-C/S Shavitri PCO-C/G

21 Contact Point-C/D Jagdamba PCO-C/S Gupta Homeo-C/S

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