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IN PARTIAL FULFILMENT OF THE REQUIRMENT FOR THE AWARD OF THE DEGREE OF “MASTER OF BUSINESS ADMINISTRATION”
SUBMITTED TO: Dr. Darshneel Grobar IIET, BAREILLY
SUBMITTED BY: RAJ KUMAR ROLL NO. 0719170041
INVERTIS INSTITUTE OF ENGINEERING AND TECHNOLOGY BAREILLY
TO WHOM IT MAY CONCERN
This is to certify that Mr. RAJ KUMAR student of MBA 3rd semester in our institute has successfully completed his project entitled “Advertising and promotional Strategies” for the partial fulfillment of the Master Of Business Administration Degree.
( Mr. Manish Gupta ) MBA coordinator IIET, Bareilly
------- ( Dr. darshneel grover) Project Guide IIET, Bareilly
In this era of growing professional and development of the new era concept and Industries, education is not complete with the theoretical knowledge of the lecture theater. One need a practical experience to identify how the management concepts are helpful in managing the organization being an MBA student. This report is the outcome of the Hindustan Coca Cola Beverages Pvt. Ltd. This project proved very beneficial for me to understand the organizations, their operation as well as help in knowing whole the advertising and promotional activities are done. This project well proved beneficial for our future managerial and professional life, also help me to learn the real environment of business operation which provide us a vast exposure to a management student.
It is a extra special task. BAREILLY. He has been a great source of inspiration and motivation. motivation and assistance while I was working on the project for providing me all necessary information and kind support and guidance.Darshneel grover (project guide) for providing me valuable ideas and suggestions which enabled me to prepare this report . This project would not have been possible without the constant & consistent support of the placement cell of INVERTIS INSTITUTE OF ENGINEERING AND TECHNOLOGY. I would also like to owe my special thanks to Dr. First of all I would like to extend my he artful gratitude towards my father Mr. It was an opportunity and great pleasure for me to be in such an environment and having interaction with concerned people. which lacks these two determinants of success. NATTHU LAL and my family who had given there unconditional support as far as my project is concerned and for constant guidance . 4 . Summer training was an exposure to corporate environment. These are two factors that go a long way in achieving it.ACKNOWLEDGEMENT Co-operation and building up of moral are the essence of success.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Heritage Promise About The Company Coca Cola Advertisements Environment Policy Code of Business Conduct Brands Objectives Research Methodology Findings Before Pilot Activity Budget Findings and Analysis After Phase I Before v/s After Learning’s Conclusion Bibliography TOPIC Executive Summary PAGE No. 5 9 11 12 18 20 24 26 34 36 62 67 69 72 75 77 80 5 .CONTENTS S No.
Value for money with internal activation. As the value for money (combo) was not working for the customer.e. So the consumer has to go for that particular combo which 7 . 3. the consumer. consumer and the company. We decided (company) to come up with a new scheme which would be in interest of all i. The value for money is basically the scheme which was used by the company previously. the outlet and the company and hence bill buster came into the picture. Bill Buster with internal activation. In this the consumer was offered a coke with the food item. The basic problem with this was that it was very rigid and the consumer was not flexible enough to choose.EXECUTIVE SUMMARY The project is the direct test of the promotion of a new scheme which is solution to the problem company is facing. The probable alternatives to the problem that were discussed are: 1. 2. For example if an outlet is offering 50 food items the combo can be made with maximum 10 items. The problem is of low incidence of coca cola India soft drinks in its E & D channel with respect to the other beverages offered by the outlet. Bill buster with PITA model.
The consumer had an extra flexibility to purchase any item of his choice and still get advantage of adding a coke at a discounted price. For this we personally visited the outlets and studied their bill books. This scheme was in the favor of all. 8 . The bill buster was introduced to make the consumer happy buy providing him that extra flexibility to choose. firstly we spoke to the person at the counter and the crew of the outlet. 2 extra. According to BILL BUSTER scheme the consumer will get a coke at discounted price (depending on the outlet). The company benefited as its’ incidence increased which was the main aim of the promotion.makes his choice rigid moreover if the number of combos were increased it will create an added confusion in the mind of the consumer.If he takes food of certain specified bill value. the outlets where bill books were not available we used two methodologies. For example if we run a scheme of 100 for 2 then in that outlet if the billing value touches Rs. The outlet had the benefit because due to3 this scheme his bill size was increasing as well as the footfall in his outlet increased. 100 then the consumer can add a coke by paying Rs. For introducing this scheme incidence rate before the promo was calculated.
For example if we find that the average bill size of the outlet is 60. Then we pitch for a 75 bill value scheme.Secondly we used observational method i. a promoter 9 . So if we pitch in for Rs 75 the consumer can think of increasing his bill by Rs 15 to add a coke for discounted value. the bottle which the outlet used to sell in the promo he was being reimbursed Rs 5 on each bottle.e. Because we found out that the consumer will only increase his bill value by 20 A to 25% to add coke for a discounted value. e we observed the proceedings in the outlet for at least 6 hours in a day to come out with a conclusion of the incidence of the outlet. This was done by the company so that the outlet does not fell that he is suffering a loss and since the company was also not sure that the scheme would work or not the company did not want the outlet would be at a loss. All these findings before the research were necessary because according to these figures we could identify the problem and came out with a useful solution. In the first phase when we were pilot testing the promo the outlet was being supported by the company i. He will not increase his bill by more than that value. The company also supported the outlet with all the marketing elements which were required to promote the scheme.
10 .was also provided at each outlet running this scheme. To explain this concept we also designed a profit calculator and a profit story. We decide to choose bill buster with PITA model.
of bills with coke divide by the total no. OF BILLS x 100 AVERAGE BILL SIZE: The average bill size is the total sale in a day divided by the total no. OF BILLS . OF BILLS WITH COKE ORDERED TOTAL NO. multiplied by 100 = TOTAL NO. of bills in a day. in particular outlet. = TOTAL SALE TOTAL NO.INCIDENCE RATE: Incidence rate is the total no. 11 . of bills.
HERITAGE COCA COLA INDIA 13 .
ABOUT THE COMPANY 15 .
The world s largest beverage company has come a long way since its modest beginnings more than a century ago. what has withstood the test and taste of time... with the old giving way to the new at almost daily strokes. Georgia. And this year. It was May of 1886 when the pharmacist concocted a caramelcolored in a three-legged brass kettle in his backyard. binding the young and old to enjoy their moments of simple pleasure and eternal joy is the magic of CocaCola. Born In a Kettle Charming the World Forever John Stith Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta. consumers the world over will reach for products of The Coca-Cola Company more than a billion times every single day.Did You Know? The Worlds Largest Beverage Company While much of the world has changed since 1886. 16 .
carbonated water was teamed with the new syrup." John Pemberton’s partner and bookkeeper." In 1886. Mr. producing a drink that was proclaimed "Delicious and Refreshing. consumers could enjoy a glass of Coca-Cola at the soda fountain. The Growing Corporate With An Ever-Refreshing Drink 17 .He first "distributed" the new product by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy. Robinson. Frank M. suggested the name and penned "Coca-Cola" in the unique flowing script that is famous worldwide today. Robinson thought "the two C’s would look well in advertising. Whether by design or accident. sales of Coca-Cola averaged nine drinks per day. For five cents.
Atlanta entrepreneur Asa G. and his more than six decades of leadership took the business to unrivaled heights of commercial success. By 1891. Pemberton sold 25 gallons of syrup.$73. Pemberton grossed -----. Woodruff became president of The Coca-Cola Company in 1923. Robert W.$50 and spent----.96 on advertising. The Coca-Cola Company was sold to a group of investors for---. For his efforts. making Coca-Cola an institution the world over.$25 million.That first year. Red has been a distinctive color associated with the number one soft drink brand ever since. his merchandising flair helped expand consumption of Coca-Cola to every state and territory. Candler had acquired complete ownership of the Coca-Cola business. Know About Our Global Bottling System 18 . shipped in bright red wooden kegs. With in four years. In 1919.
our global bottling system packages and markets products. 19 .Today. during an especially busy summer in 1894. our products reach consumers and customers around the world through a vast distribution network made up of local bottling companies. large-scale bottling became possible when Asa Candler granted exclusive bottling rights to Joseph B. and most are independent businesses. then distributes them to more than 14 million retail outlets worldwide. In 1899. He began offering bottled Coca-Cola. using syrup shipped from Atlanta. concentrates and beverage bases produced by The Coca-Cola Company. Know the Bottling History of Coca-Cola Coca-Cola began as a fountain product. Tennessee. These bottlers are located around the world. The contract marked the beginning of The Coca-Cola Company s unique independent bottling system that remains the foundation of Company soft drink operations. Using syrups. but candy merchant Joseph A. Biedenharn of Mississippi was looking for a way to serve this refreshing beverage at picnics. Thomas of Chattanooga. Whitehead and Benjamin F. The Coca-Cola Company is committed to assisting its bottlers with the functions of an efficient bottling operation and initiating quality systems to ensure the highest quality products for our consumers.
As a result. As a result. the contour bottle for Coca-Cola with the shape now known around the world was developed in 1915 by the Root Glass Company. which consumers would be unable to identify until they took a sip. in April 1985. a new cola emerged from laboratory research. soda bottles were all very similar. The Company proudly introduced the new taste of Coke . The answer was to create a distinct bottle for Coca-Cola. And Coca-Cola had many imitators.the first change in the secret formula since the product was created in 1886 Trademark Registration of Coca-Cola 20 . Through internal evaluations and thousands of blind taste tests. consumers said they preferred it over both Coca-Cola and its primary competition.Coca-Cola Bottles As Memorable As The Design Back then. Coca-Cola Gets The First Change Of Taste in 1886 In 1985.
Later years saw the introduction of additional products bearing the Coca-Cola name. Coca-Cola classic became. and still remains. an honor awarded very few packages.S. In July 1985. In 1986. Our Trademarks The Worlds Most Valuable Assets 21 . the nation s top-selling soft drink. Consumers responded with an unprecedentedand now famous-outpouring of loyalty and affection for the original formula. Extension Of The Most Cherished Trademark In 1982. the original formula of Coca-Cola returned as Coca-Cola classic. familiar to consumers everywhere. Patent and Trademark Office in 1893.S. marking the first extension of the Company s most precious trademark to another product. followed by "Coke" in 1945. which now encompasses a powerful line of cola products.S. The Coca-Cola Company introduced diet Coke to U. Patent and Trademark Office in 1977. consumers. Coca-Cola Classic Ruling Since 1886 The launch of Coke with the new taste took place in the United States and Canada. The unique contour bottle. was granted registration as a trademark by the U.The trademark "Coca-Cola" was registered with the U.
Interestingly. returned to India in 1993 after a gap of 16 years giving a new thumbs up to the Indian Soft Drink Market. the corporate nourishing the global community with the worlds largest selling soft drink concentrates since 1886. the most drunk soft drink on earth is one of the world s best-known and most admired trademarks. Coca-Cola. first time produced the syrup for CocaCola on May 8. Brings Back The Fizz To India. the Coca-Cola trademarks happen not only to be our most valuable assets but of the entire earth.Our most valuable assets happen to be the trademarks we possess. No wonder. John Stith assumed an iconic status in the minds of the Pemberton for the consumers. our brands have Dr. the world that is touched by our cherished drinks for every moment. 1886 A Healthy Growth To The Indian Economy Ever Since. Coca-Cola India has made significant investments to build and continually consolidate its business in the 22 . the Company took over ownership of the nation's top soft-drink brands and bottling network. For Coca-Cola. recognized by more than 90 percent of the worlds population. In the same year.
country. and indirectly creates employment for more than 125. including new production facilities. and distribution supply system.000 people in related industries through our vast procurement. also That apart. 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. waste water treatment plants.000 people. manufactures range products . the business system of the Company directly employs approximately 6. refreshment & nutrition needs but has also been instrumental growth to job in giving an exponential opportunities. Coca-Cola India is among the country’s top international investors. The vast Indian operations comprise 25 wholly-owned. and given consumers the pleasure of world-class drinks to fill up their hydration. a a network of 23 of 21 for contract-packers the Company. Creating Enormous Job Opportunities With virtually all the goods and services required to produce and market Coca-Cola being made in India. The Company has not only shaked up the Indian carbonated drinks market. A Pure Commitment to The Indian Economy. distribution systems and marketing channels.companyowned bottling operations and another 24 franchisee-owned bottling operations.
open-bay three-wheelers that can navigate the narrow alleyways of Indian cities constantly keep our brands available in every nook and corner of even the country’s remotest areas.On the distribution front. 10-tonne trucks. 24 .
slogans for CocaCola have always been memorable. Here are some highlights: YEAR 2007 TAG LINE sabka thanda ek 25 .Coca-Cola Advertisements Its The Real Thing Advertising has played an important role in the success of our products since our first newspaper ad in 1886. "CocaCola. which read. Throughout the years. Delicious! Refreshing! Exhilarating! Invigorating!" The Company uses advertising to trigger desire as often and in as many ways as possible.
2005 2003 2000 1993 1990 1989 1986 1982 1976 1971 1969 1963 1959 1944 1942 1936 1929 piyo sar utha ke thanda matlab coca cola Coca cola enjoy Always Coca cola Can t Beat the Real Thing Can t Beat the Feeling Red. White and You Coke Is It Coke Adds Life I d Like to Buy the World a Coke It s the Real Thing Things Go Better with Coke Be Really Refreshed Global High Sign It s the Real Thing It s the Refreshing Thing To Do The Pause That Refreshes 26 .
we have produced some of the most memorable campaigns of the times. advertising images for Coca-Cola have always set a high standard of quality for other products around the world. Coca-Cola India collected Advertiser of the Year and Campaign of the Year awards for the Thanda Matlab Coca-Cola all-media campaign. Wyeth. C. creative and tasteful. were the hallmark of early campaigns in premier magazines. including Norman Rockwell and N. the Company’s thrust has always been on reaching the core of the consumers heart through advertising excellence. helped mould the national image of a red-suited Santa Claus. Indian Advertising Award In India too. Our advertising reflects that special relationship between consumers and the simple moments of pleasure they have come to associate with Coca-Cola. Artist Haddon Sundblom s portraits for holiday ads. which began in the 1930s. in early 2003. In fact. Fresh.Fine illustrations by noted artists. Consequently. The Company recognizes that Coca-Cola belongs to the billions of Consumers in every corner of the globe who have chosen it as their favorite soft drink. 27 .
which provides a framework to transform this principle in actions. Preserve and Enhance the Environment we work in. We will carry out our operations in ways that Protect.ENVIRONMENT POLICY We at Coca-Cola India are in the business of beverages that refresh people. Our activities are guided by Coca-Cola EKO system. Towards this objective. it shall endeavor to: 29 .
Working as catalyst to enhance collection of post consumer PET bottles through awareness programs and synergizing relevant agencies for getting better pricing to the consumer. 2. 5. 3. energy and fuel by continually improving its usage and reducing wastage. Seek co-operation with Public. 4. Advertising initiatives are to be critically evaluated while advertising in eco-senstive areas.1. Establish. 6. Religious. Formulating sound environmental objectives and targets and integrate a continuous process review in all essential elements of corporate management. Statutes and Consents. Private and Governmental Organizations in identifying solutions to relevant environmental issues. 7. Conservation of natural resources specifically in water. Using cooling equipment with environmentally friendly technologies. not put advertisement on Historical Monuments. 30 . Political Buildings & Structures and other specially protected and sensitive areas. maintain and operate facilities to comply with all applicable Environmental Safety and Health laws.
This policy has been communicated to all associates of Coca-Cola India to ensure compliance and shall be made available to public and interested parties on demand. 10. under ISO 14001 before December 31 . Ensuring Procurement policies that consider the environmental impact of packaging materials and all direct and indirect process aids used within the operation. Ensuring all operations implement EKO Management System and requirements 2004.8. Managing fleet operations in a manner to minimize environmental impacts by ensuring good maintenance. improving & tracking fuel efficiency and effectively managing wastes. 9.
CODE OF BUSINESS CONDUCT 32 .
Respect. These changes and additions make The Coca-Cola Company Code of business conduct a powerful resource for protecting our Company’s reputation for integrity. 33 . Diversity. as well as employees and officers. adding procedural guidelines that establish steps for investigating and addressing possible violations of the code. This code continues to serve as a guide to our actions. easy-to understand terms. we issued a revised code of business conduct in 2002 to every employee worldwide. Integrity. It also extends its scope to the conduct of company directors.To reaffirm our commitment to ethical behavior as an organization and as individuals. Responsibility and Accountability It presents the information in clear. advancing and protecting our core values of Honesty. Quality.
BRANDS 35 .
marketer and distributor of non-alcoholic beverages in the world. In India. Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation. the thriving cinema industry. 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. music etc. building strong associations with cricket. Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. has a truly remarkable heritage. it is now the flagship brand of the largest manufacturer. From a humble beginning in word across the world 1886.SABKA THANDA EK” 123- The world's favorite drink. Coca-Cola has been very strongly associated with cricket. including the 36 . The most recognizable after OK. sponsoring the World Cup in 1996 and various other tournaments. even in the remote and inaccessible parts of the nation. The world's most valuable brand.
Coca-Cola Cup in Sharjah in the late nineties. its brand ambassadors are Aamir Khan and Hrithik Roshan “TASTE THE THUDER” 37 . Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had entered the youth's vocabulary. Coke was available for just Rs. 5 across the country and this pricing initiative together with improved distribution ensured that all brands in the portfolio grew leaps and bounds. Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it India's favorite soft-drink brand. Sourav Ganguly. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor. In 2002. In 2003. cricketers such as Srinath. southern celebrities like Vijay in the past and today.
Originally introduced in 1977.Strong Cola Taste. Exciting Personality Thums Up is a leading carbonated soft drink and most trusted brand in India. fizzy taste and its confident. Thums Up is known for its strong. 38 . Thums Up was acquired by The Coca-Cola Company in 1993. This brand clearly seeks to separate the men from the boys. mature and uniquely masculine attitude.
Fanta stands for its vibrant color.The 'orange' drink of The Coca-Cola Company. Fanta . Fanta entered the Indian market in the year 1993. cheerful and special times with friends “FRESH HO JAYO” Lime n' lemoni Limca . Perceived as a fun youth brand. is seen as one of the favorite drinks since 1940's.Internationally. the drink that can cast a tangy refreshing spell on anyone. Born in 1971. Limca has been the original thirst 39 . 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. anywhere. Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst".
The success formula? The sharp fizz and lemoni bite combined with the single minded positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. of millions of consumers for over 3 decades. “CLEAR HAI” 40 .choice. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavor soft drink in the country. Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca and walk away a new person.
influence them to be true to who they are and to obey their thirst. Sprite has stood for a straight forward and honest attitude. 41 . Why? With a strong appeal to the youth. In India.Worldwide Sprite is ranked as the No. Its clear crisp refreshing taste encourages the today's youth to trust their instincts. 4 soft drink & is sold in more than 190 countries. Here was a drink that offered the same real taste of fruit juices and was available throughout the year. Today Sprite is perceived as a youth icon. Sprite was launched in year 1999 & today it has grown to be one of the fastest growing soft drinks. “YARRI DOSTI TAAZA MAZZA” Maaza was launched in 1976. leading the Clear lime category.
The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza" “BOOND BOOND MEIN VISHWASS” 42 . The current advertising of Maaza positions it as an enabler of fun friendship moments between moms and kids as moms trust the brand and the kids love its taste.In 1993. Maaza hain Naam". Consumers regard Maaza as wholesome. This has been the result of such successful campaigns like "Taaza Mango. Maaza currently dominates the fruit drink category. Over the years. natural. brand Maaza has become synonymous with Mango.Maaza Mango" and "Botal mein Aam. fun drink which delivers the real experience of fruit. Maaza was acquired by Coca-Cola India.
Water you can trust to be truly safe and pure. That is why we introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our product. a thirst quencher that refreshes. the very sustenance of life. Water. A universal need. Kinley water thus promises water that is as pure as it is meant to be. 43 . Particularly in a nation such as India where water governs the lives of the millions.Water. be it as part of everyday rituals or as the monsoon which gives life to the sub-continent. Kinley water understands the importance and value of this life giving force. Kinley water comes with the assurance of safety from the Coca-Cola Company. A ritual purifier that cleanses. That's why we go through rigorous testing procedures at each and every location where Kinley is produced. a celebration of life itself. The importance of water can never be understated. a life giving force that washes all the toxins away. safe drinking water is fundamental. the most basic need of life. that cannot be left to chance. purifies. transforms. Because we believe that right to pure.
The promo’s main aim was to give a benefit to all the parties involved i. other beverages etc. 45 .). The company were incurring huge amount of costs in promoting the value for money but there was no fruitful result as the incidence was not increasing. juice.e.OBJECTIVES The main objective of the promo was to increase the incidence rate. the consumer. the outlet and the company. so they wanted to have a replacement for that and they also wanted to increase the incidence of coca cola compared to its competitors( lassi.
To associate food with coca cola. 46 . (food tastes great with thanda) To increase profitability of the outlet.The following were the main objectives of the promo: 123To increase the incidence rate of coca cola India Soft Drinks.
research is required & that research is being done through data collection . Datas could be collected through its sources such as – 1Primary source 47 .RESEARCH METHODOLOGY To get a reporting any particular area.
Kips Confectiory. Gogul Mega Mart etc.. Restourent and mall in Bareilly in Rajendra nagar and serch shop who shop keeper sales soft drink as like China Toun.2- Secondary source I have gone through primary & secondary source of data collection while preparing this project report and make a questionnaire for collecting primary data collecting in whole area market of soft drink. 48 . Firstly go to in retail shop.
Bill Size 50 60 50 49 .FINDINGS BEFORE PHASE 1: Combo VFM Outlet Name Incidence Before Offer Bite & Sip Chattisgarh N Paul 12% 12% 13% Before Total No. Bills 90 45 110 Avg.
New Zaika 11% 17 135 Bill Buster (Add a Coke) Outlet Name Before 50 .Chowdhury Sweets Laguna Sizzlers 14% 11% 115 60 This was the actual shape of 55 110 the outlets before the pilot test.
Bill Size 90 65 60 65 65 93 100 63 60` 65 75 55 225 60 90 Findings before the Promotion: 51 .Incidence Before Offer Akash deep Bengal Café Gupta Sweets Hydrabadi Biryani J&K Stall JJ Food Stall Kwick Bite Manipur stall New Prem Dhaba Odeon Sweets Orissa Stall Punjabi Food Court Rajinder xpress Singla Sweets Tibet Kitchen 11% 10% 12% 12% 11% 12% 12% 18% 12% 11% 12% 14% 8% 11% 11% Total No. Bills 110 120 105 50 55 300 50 100 70 135 30 80 130 65 45 Avg.
2.e.20%.1. BUDGET FOR THE PROMOTION 52 . According to the consumer. 12% . The incidence level of coca cola was low i. value for money was rigid in terms of offerings. The value for money scheme was not performing as expected. 3.
I PROCEDURE 53 .Element Quantity 20000 Cost Special Instructions Please see Sheet 2 For calculation and 100000 600000 10000 12000 1000 1000 20000 54000 6000 Estimation 15 Promoters. 3 Supervisors. for 30 days digital print communication-generic digital print communication-generic digital print communication-generic digital print communication-generic digital price-digital communication digital print communication-generic Liquid Amount Promoters Cost A4 print Combo Print (1/2 price & OBM) Open close Pamhplet (1000/outlet) Menu cards (30/outlet) tent Cards Bottles for 1 month 100 50 25 25 20000 600 5000 Total Cost EnD Promo First Phase 804000 295960 1099960 PILOT ACTIVITY .
2.Number of Outlets: 15 Revenue Sharing Model:• A revenue sharing model was followed in the first stage to• • Successfully implement the Program. 150) Rs. 2 on bill value of Rs.00 Rs.00 Rs.) 2.00 COST STRUCTURE PER OUTLET: Pilot Activity Phase one EnD Promo (Value Deals) Cost per unit Units per Elements A shaped Standee (Rs.00 OFFER II (Coke for Rs.00 75) Rs. 5. 5. and To sell the concept to the retailer OFFER I (Coke for Rs. 5. 5.00 Retailer Rs. 3. 5 on bill value of Rs.644 .644 54 outlet 1 Total Cost (Rs.) 2. Consumer Pays HCCBPL Rs.
561 55 .Wall Hanging Combos L Shaped utility Board Open / Close Signage Inserts for elements Wooden Tent Cards Menu Cards Promoter Total Cost Per outlet 867 698 602 45 310 94 1.975 28.550 2.265 1 867 698 1 602 1 405 9 5 30 15 1.820 18.
600ml and 1.) Average Profit (Rs per ltr) P I T A Cooler at the Entrance Standee.PITA MODEL Number of Shoppers or Consumers in Given Universe % of population that buys our product Amount in volume brought per transaction Amount of profit in value per transaction P I T A Gross Profit (Rs) = Population (Traffic) X Incidence X Transaction X Size (ltr. sign At the entrance Combo Board at the Entrance Cooler in Prime position Cooler pure And clean Rack display Rack display Cooler top Display 300ml instead of 200ml 600ml and 2 ltr PET Availability Cooler in Prime position 300ml instead Of 200ml Mobile PET Availability 2 ltr PET Availability Can availability Mazza 250ml.2 ltr availability Shelf display Combo boards Table activation Counter top Display 56 .
MARKETING ELEMENTS 57 .
Bills 85 47 119 113 62 17 Avg.FINDINGS AND ANALYSIS After pilot 1: This is the result which we achieved after the completion of phase 1. Bill Size 55 66 56 65 118 150 Bill Buster (Add a Coke) Outlet Name Incidence % Akash deep Bengal Café Gupta Sweets Hydrabadi Biryani J&K Stall JJ Food Stall Kwick Bite Manipur stall New Prem Dhaba Odeon Sweets Orissa Stall Punjabi Food Court Rajinder xpress Singla Sweets Tibet Kitchen 63% 68% 68% 72% 76% 72% 58% 74% 58% 50% 73% 44% 59% 54% 51% Total No. Bill Size 112 90 87 84 81 115 115 95 84 73 88 70 275 80 120 59 . there was a drastic change in the incidence from before to after. So bill buster was found out to be a success Combo VFM To Outlet Name Incidence % Bite & Sip Chattisgarh N Paul Chowdhury Sweets Laguna Sizzlers New Zaika 25% 22% 24% 21% 19% 20% Total No. Bills 130 135 114 61 60 358 55 118 78 167 35 92 140 70 50 Avg.
Bill Value Growth in Avg.BEFORE V/S AFTER Growth in Avg. of Bills 61 . No.
BEFORE V/S AFTER ANALYSIS BILL BUSTER( Add a coke) Incidence level IN C ID E N C E L E V E L 80% 70% Rate of incidence 60% 50% 40% 30% 20% 10% 0% A k as h deepB engal Café G upta S weets O utle t Hy drabadi J& K S tall B iry ani 11% 10% 12% 12% 11% 63% 68% 68% 72% 76% B efore the prom A fter the prom o 62 .
IN C ID E N C E R AT E 80% 70% Level of incidence 60% 50% 40% 30% 20% 10% 0% JJ Food S tall K wick B ite M anipur s tall New P rem Dhaba Outle t Odeon S weets 12% 12% 18% 12% 11% 72% 58% 74% 58% 50% B efore the pro A fter the prom 63 .
IN C ID E N C E R AT E 80% 70% Level of incidence 60% 50% 40% 30% 20% 10% 0% O ris s a S tall unjabi F ood Rajinder P Court x pres s O u tle t S ingla Tibet K itc hen S weets 12% 14% 8% 11% 11% 44% 73% 59% 54% 51% before the pr A fter the prom 64 .
Average bBll size(bill buster) AV G. B IL L S IZE 120 100 80 Bill size 60 40 20 0 A k as h deepB engal Café G upta S weets O u tle t Hy drabadi J& K S tall B iry ani 90 65 112 90 60 87 65 84 65 81 B efore the prom o A fter the prom o 65 .
B IL L S IZE 140 120 100 Bill size 80 60 40 20 0 0 JJ F ood S tallK w ic k B ite M anipur s tallN ew P rem D haba O u tle t O deon S w eets 93 115 115 100 63 95 84 65 73 B efore the prom o A fter the prom o AVG. B ILL SIZE 300 250 Bill Size 200 150 100 50 0 Orissa Stall Punjabi Food Rajinder Court xpress Outle t Singla Sweets Tibet Kitchen 75 88 55 70 60 80 90 120 Before the prom o After the prom o 225 275 66 .AV G .
of bills 300 250 200 150 100 50 0 JJ Food Stall Kwick Bite Manipur stall Outlet New Prem Dhaba Odeon Sweets 50 55 100 118 70 78 300 Before the promo After the promo 358 135 167 67 . FOOTFALL PER DAY 400 350 No.Average footfall per day: AV G . F O O T F AL L P E R D AY 160 140 No. of bills 120 100 80 60 40 20 0 A k as h deepB engal Café G upta S weets O u tle t H y drabadi J& K S tall B iry ani 130 135 114 B efore the prom o 61 60 A fter the prom o AVG.
68 . FOOTFALL PER DAY 160 140 120 NO. of bills 100 80 60 40 20 0 Orissa Stall Punjabi Food Court Rajinder xpress Outlet Singla Sweets Tibet Kitchen 30 35 80 92 65 70 45 50 Before the promo After the promo 130 140 Note: The average footfall increased by 6%n an average.AVG.
VALUE FOR MONEY
IN C ID E N C E L E V E L
30% 25% Rate of incidence 20% 15% 10% 5% 0% B ite & S ipC hattis garh N P aul C how dhury Laguna N ew Zaik a S w eets S iz z lers O u tle t 12% 12% 13% 14% 11% 11% 25% 22%
24% 21% 19% 20%
B efore the prom
A fter the prom o
A V G . B IL L S IZE
160 140 120 Bill size 100 80 60 40 20 0 B ite & S ipC h a ttis g a rh N P a u l C h o wd h u ry L a g u n a Ne w Za ik a S we e ts S izzle r s O u t le t 50 55 60 66 50 56 55 65 118 110 150 135
B e fo re th e p ro m
A fte r th e p ro m o
AV G. FOOTF AL L P E R D AY
140 120 100 Bill size 80 60 40 20 0 B ite & S ip h attis g a rh N P a u l C h o w d h ury L a g u n a N e w Za ik a C S w e e ts S iz z le rs O u tle t 45 47 17 17 90 85 60 62 119 110 115 13 1
B e fo re th e p ro m
A fte r th e p ro m o
The increase in the incidence, average bill size and the footfall did grow, but in comparison to the bill buster it was low. So bill buster was considered a better option.
VALUE FOR MONEY V/S BILL BUSTER 72 .
% In c r e a s e in t h e in c id e n c e le v e l( v a lu e f o r m
1 2 0 1 0 8 .3 3 100 80 % increase 60 40 20 0 B it e & S i h a t t i s g aNr h P a u l C h o w d h u Lya g u n aN e w Z a ik a Cp r S w e e t s S iz z l e rs O u tl e t 5 0 .0 0 8 3 .3 3 8 4 .6 2 7 2 .7 3 8 1 .8 2 % In c r e a s e
700% 600% 500% 400% 300% 200% 100% 0%
% Increase in the incidence( bill buster)
as Be h d n ee Gu gal p H y pt C a dr a S fé ab w ad ee i B ts ir J& yan JJ K i Fo Sta od ll Kw S t a M i ck l l Ne an B ite w i Pr pur s e Od m D tall eo ha n ba Sw Pu nja Oris eet b i sa s F S Ra ood tal jin C l d o Si er x urt ng pr la es Ti Sw s be ee t K ts itc he n
FINDINGS AND ANALYSIS
As the diagrams show that all the objectives of the promo were achieved and all the parties i.e. the outlet, the consumer and the company were all gaining from the promo. The incidence rate, the average bill size and the footfall also increased in the outlet. So all the objectives of the promo were achieved. The company’s main objective was to find a replacement for the value for money and bill buster was found out to be the right replacement as all the indicators showed a positive result. • • A substantial amount of increase in the Incidence. From 11% to 69%. Substantial increase in the average bill value across the outlets from Rs. 65 to Rs. 95, an avg. growth of around 46% • Increase in average number of bills in an outlet – a growth of around 6%
When the pilot test showed that the bill buster was successful, then we needed to carry forward the activity and wanted to upscale it. So in the second phase it was decided that the company would not fund anything i.e. there would be no reimbursement from the company.
15% to 65 . 5. 5. According to the consumer. Bill buster was found out to be more flexible than value for money.e. 95 i. Bill buster emerged as a tool to maintain better relationships with the customer. 2. 12% . 6. 65 to about Rs. 4. The incidence level of coca cola was low i. 46% increase. The incidence rate grew from a mere 12. A substantial increase in the average bill value from Rs. 77 . value for money was rigid in terms of offerings. After Phase 1: 1.70%. The value for money scheme was not performing as expected. 3. 6.20%.e.KEY FINDINGS Before The Promotion: 4. The number of loyal customer increased at the outlet. It helped us to achieve the objective of associating food with thanda (coke).
e.7. Bill buster was found out to be a success as a replacement for the value for money (combo) deal. the outlet and the company. The scheme was found out to be beneficial for all i. 9. 8. But model where the company was reimbursing was not a self-sustainable model as reimbursement was not possible at the time of up scaling 78 . the consumer.
5 Contributes Balance Amount Incurs Only Marketing Expenses To enter into phase two where there was no support provided HCCBPL to the outlet.PHASE-2 After the pilot activity 1 was declared a success we decide\d to move to phase 2 of the project where in we wanted to increase the number of outlets to 300 . A Self Sustainable Model Consumer Pays Retailer HCCBPL Rs. the activity was as follows: Objective: To make the PILOT I Project a self sustainable long term profit making proposition for the retailer. A profit calculator 2. profit story 79 . we had to show the results of pilot activity to the outlets so that they get convinced and are ready to run the scheme. So we prepared: 1.
550 1.000 18.000 Units per outlet 1 1 1 1 9 5 30 1.560 572 10.644 867 698 602 45 310 52 0.000 1 Total Cost (Rs.COST STRUCTURE PER OUTLET: Pilot Activity Phase II EnD Promo (Value Deals) Elements A shaped Standee Wall Hanging Combos L Shaped utility Board Open / Close signage Inserts for elements Wooden Tent Cards Menu Cards Pamphlets/ Handouts Promoter Total Cost Per outlet Cost per unit (Rs.572 10.644 867 698 602 405 1.) 2.) 2.898 80 .
) : Retailer Pays (Rs.400 Variables: Can be changed by during Promo Avg.) 80 Avg.800 7 INCREASED PROFIT IN A YEAR 81 .342. Increase in Total Bill Size80 Incidence (20%) increased 30 amount110 Profit in bill and Footfall (10%) due to Promo profit (Rs) Surplus Increase in bill Size 1.PROFIT CALCULATOR: • For a scientific calculation to provide the retailer a high profit margin a Profit Calculator PROFIT CALCULATOR Selling Price: No.340 80 40 32 115 35 3.) BEFORE 100 100 32 39 32 39 3. Profit Percentage (%) Incidence by 20% 20 Profit: (Rs.200 5 Regular Activity Increase in Bill Size :( Rs.152.40 0 50.202. of Bills Consumer Pays (Rs.80 0 190.00 --0 1.) / Day Profit / Bill 32 Total 12 Profit / 7 Day 3.730 46 Profit to Project Profitable bill the SE Additional size Per Profit Annum 1.
Could you devote few minutes for me? Benefit Statement: • • • • Would help you to earn an additional profit of Rs. 225. (Incidence) 82 .PROFIT STORY Objective: To convince a retailer for Bill Buster (Add a Coke) Scheme Achieve Rapport: Sir. based on my experience with other outlets.000 in a year Increase in the number of customers visiting the outlet (Population / Footfall) Will result in a large base of loyal consumers (Population) Attractive form of beverage selling that will trigger consumer purchase decision. I am sure I will be able to make your selling offer more attractive. contributing to increase in your sale/income in the outlet and a larger base of loyal consumers.
750 One Day One Day One Day 2. 900. Total Profit Rs. the consumer perceives it as a promotion and buys products.000 990.5 Total Profit (Rs) Profit Earned 2.000 Total Profit Rs. 100 Avg.500 2.• • • • Seeing “Saving’ communication. On our Pilot Study with other outlets we have seen an increase of average bill value by more than 40 percent and an increase in footfall by 20 percent. Convey Solution Avg. bill size: Rs. profit per bill: 25 percent Avg. (Transaction) Increase in bill value: Avg.750 250 90. (Transaction) Complementary marketing promotion and materials to increase the brand value of your outlet (Activation).000 750 2.125 One Day One Day 2.5 Total Profit Profit Earned Total Profit III) Profit due to Increase in incidence & Footfall Does not go for Promo Opts for Promo 80 30 Earns Profit Earns Profit 25 37.000 83 .000 1. number of bill in a day: 100 Profit Calculator I) Profit Due to Increase in Footfall Current Footfall Increase Footfall 100 110 Earns Profit Earns Profit Additional Profit Total Increase in profit in a year II) Profit Due to increase only in Incidence Does not go for Promo Opts for Promo 80 20 Earns Profit Earns Profit 25 37. bill value will go up which in turn will give you more profit and higher income.
profit by another 50 percent. 175. at our disposable. 84 . 100 bill size will be up scaled to Rs. Effort: • Time: We have got specialized team for installations of materials. Deal With Objectives: Sample statements answering Customers certain objections Place/ Locations: • We have got materials for promoting the scheme to the consumers visiting your outlet and as well as surrounding places which in turn will help in promotion of your outlet.125 One Day */ Calculations are on daily assuming that Rs.Total Profit (Rs) Net Increase in Profit in a year (Rs) 225.000 3. which will increase existing avg. • • We can also place Tent Cards and Table Mats cum Menu Cards for the people sitting and ordering which will communicate the scheme The marketing elements promoting your outlet and the scheme will be placed at the consumers decision making zones.
We will be providing you with a special Promoter for the Promotion Period who will ensure the successful launch of this promotion. 85 . Please have a look at the calculations once again. Get the arrangement confirmation from the Customer. End Successfully Make sure you have conveyed the information. You trade turnover and profit will increase. I assure you. they are very happy with the decision they made. Make sure you keep to your promise. Sum up and confirm all the arrangements made while talking to the customer (Date and place of installation of marketing elements). Money: • I understand your fears concerning the lowering the price of beverages. • My other customers have also opted for this same promotion and price suggestion. But you will earn more through increasing transaction and increase in average billing.• I will not engage your stuff or crew members for the promotion.
bill value will go up Population (P) . which would help you to earn an additional profit of Rs. 200. based on our experience with other such outlets. I am sure I will be able to make your selling offer more attractive.000 in a year Could you devote few minutes for me? Benefit Statement: • Increase in the number of customers visiting the outlet • Will result in a large base of loyal consumers • • • Attractive form of beverage selling that will trigger consumer purchase decision Seeing “Saving’ communication.PROFIT STORY (APPLYING THE PITA MODEL) Objective: To convince a retailer for Bill Buster / Value Deal (Add a Coke) Achieve Rapport: Sir. the consumer perceives it 86 as a promotion and buys products. contributing to increase in your sale/income in the outlet and a larger base of loyal consumers. Increase in bill value: Avg.
Incidence (I) Transaction (T) Amount (A) MARKETING ELEMENTS “A” SHAPE STANDEE 1. 87 .
Open.2.close signage 88 .
all hangings 89 .3.
L shape utility board & menu cards: Menu Board ‘L’ Shape Utility with Promo Communication 91 .4.
5. Promoter Led Crew Suggestive Selling 92 .
FINDINGS DURING PHASE 2: Incidence Avg. Bill Value Total Bills (% of Bills on KO) Before During Growth Before During Growth Before During Akashdeep restaurant Kwick Bite Punjabi Food Court Madras Hotel Odeon Sweets 65 130 65 88 133 88 36% 2% 35% 80 115 135 94 125 92 18% 9% -32% 14% 12% 11% 41% 59% 40% 90 100 116 120 29% 20% 115 90 128 98 11% 9% 11% 12% 44% 52% 93 .
Hydrabadi Biryani Grand Sindhi Restaurant Kripps Restaurant Hot & Spicey Cosy Restaurant Bengali sweets corner 38 FM Lounge Amarjyoti Restaurant Krishna Restaurant Gupta sweets Shriram sweets Kerala café 65 650 250 200 160 110 110 77 842 245 223 181 112 112 18% 30% -2% 12% 13% 2% 2% 75 20 70 50 120 290 250 98 13 49 67 106 311 278 30% -37% -30% 33% -12% 7% 11% 15% 14% 12% 13% 12% 15% 15% 22% 43% 71% 32% 76% 42% 58% 105 120 75 160 125 135 86 190 19% 13% 15% 19% 50 50 100 45 32 64 114 44 -36% 29% 14% -2% 15% 10% 15% 15% 59% 40% 48% 58% 90 116 29% 90 89 -1% 12% 75% 94 .
The incidence level was not as high in the second phase as was when the company was funding. 95 .Findings during phase 2: 1.
The average bill size of the outlet is increasing NOTE: Now the company has decided to scale up the activity and launch it in Delhi 96 .2.
LEARNINGS • Convincing skills 97 .
• • • • Decision making ability Managing a team of supervisors and promoters Training and Motivating a team Implementing pilot test and scale up 98 .
99 . The bill buster with PITA model was found out to be the most effective of the three alternatives.CONCLUSION The pilot activity turned out to be a success and it was decided by the company to launch the scheme in the whole of Delhi.
since program requires complete appreciation of Customer profitability 100 . the avg. the consumer 2. bill size and the footfall of the outlet went up. SCALE-UP PLAN • Capability team to do the training of SE and MD’s. The future plan of the company is to launch the scheme as a replacement for the combos. HCCBPL were at a profit and found the scheme to be very effective as the incidence. the customer( outlet) 3.All the three parties involved: 1.
6 million) • Also plan an annual target based QPS for each outlet under this program. SE and MD’s will witness the success stories in the territories and then they will replicate to scale up to 300 outlets by 2007 end on sustainable basis. 10. 101 .000 per month (Total cost of Promoters per annum will be Rs.• Initially Channel Team and Capability team will increase the Outlet number to 100 by the end of July 2007. • Need CCI support to keep the promoters for 1 month for each outlet • • First 15 days: Promotion of the Consumer Offer Next 15 days: Training of outlet crew members • We plan to add 50 new outlets every month for which we will need 50 Promoters for 1 year at a cost Rs.
INTERNET 102 .BIBLIOGRAPHY 1.
Philip. 2007 103 . Pearson Education. 12th edition. BOOKS • Marketing Management.coca-colaindia.• • www.com 2.com www. Kotler.google.
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