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A PROJECT REPORT ON Marketing Activities Consumer opinions With Reference TO VIMAL BOTTILING COMPANY Pvt. Ltd samalkot.

In Partial Fulfillment of the Requirement For The A ward of the Degree In MASTER OF BUSINESS ADMINISTRATION BY y.chakradhararaja Under the Esteemed Guidance of Mr. Dr. K.pravinkumar DEPARTMENT OF MANAGEMENT STUDIES Ramana Institute of Technology 2010-2012.

DECLARATION
I, Mr.Y CHAKRADHARARAJA here by declare that this project report entitled ASTUDY ON Marketing Activities Consumer opinions M/s VIMAL BOTTILING COMPANY Pvt. Ltd is a benefited work done by me to Ramana Institute of Technology COLLEGE, tadepalligudem. I further declare that this work is of my own and has not been submitted in part (or) full for the award of my degree. . Y.CHAKRADHARARJA MBA-Final year (2010-2012)

ACKNOWLEDGEMENT I take this opportunity to express my sincere gratitude to the staff of VIMAL BOTTILING COMPANY Pvt.Ltd, SAMALKOT-533440 and especially Mr.channel distributor For this guidance. Suggestion and kind cooperation without which would not have been possible my project works. I am thankful to my project guide Mr. Dr., . K.pravinkumar Head of the Department. Ramana Institute of Technology COLLEGE who helped me with their valuable suggestions in carrying out my project. I would also endorse my thanks to my project guide Mis. Dr.AMBICA faculty, Maharajas Post Graduation College. My heartfelt gratitude to my parents and friends for their moral support in shaping my project, which was really commendable. This project would not have been possible at all without their extreme cooperation, almost patience and value contribution that had been the motivation factor. Signature of the Student Y.CHAKRADHARAJA

CHAPTER - I
NEED FOR THE STUDY OBJECTIVES METHODOLOGY LIMITATIONS

SOFT DRINKS IN INDIA


Our soft drinks in India industry profile is an essential resource for top-level data and analysis covering the soft drinks industry. It includes detailed data on market size and segmentation, plan textual analysis of the key trends and competitive landscape. Demographic information and descriptions of the leading companies. Scope Contains an executive summary and data on value, volume and segmentation. Provides textual analysis of the industry prospects, competitive landscape and leading companies includes a five-year forecast of the industry supported by the key macroeconomic and demographic data affecting the market Highlights Detailed information is include on market size, measured by both value and volume market shares are covered by manufacturer and/or brand distribution channels are also analyzed why you should buy this report spot future trends and developments inform your business decisions add weight to presentations and marketing materials save time carrying out-level research.

THE MARKET FOR SOFT DRINKS IN INDIA Total sales of soft drinks in India amounted to Rs 111 billion and almost 3,272 million liters in 2002. with growth of around 7% in current value and 17% in volume terms in that year, sales grew mostly on the back of renewed interest in carbonates as a result of supply-led strategies, strong demand for bottled water and interest in 100% reconstituted juices. In-depth individual country reports are available for 52 soft drinks markets. Analysis includes the latest on trade vs. off trade sales statistics, comprehensive sector sales breakdowns and company and brand share data. Use our soft drinks analysis to develop market strategy, evaluate opportunities and threats and anticipate industry developments. SOFT DRINKS Introduction Soft drink market size for FY00 was around 270 m.n cases (6480mn bottles). The market witnessed 5-6% growth in the early90s. Presently the market growth has growth rate of 7-8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000 mn bottles.

Soft Drink Production area The market preference is highly regional based. While cola drinks have main markets in mero cities and northern states of up, Punjab, Haryana etc. orange

flavored drinks are popular in southern states. Sodas too are sold largely in southern states besides sales through bars. Western markets have preference towards mango-flavored drinks. Diet coke presently constitutes just 0.7% of the total carbonated beverage market. 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 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 had 6.5 lakh outlets across the country in FY00, which the company is planning to increases to 8 lakhs outlets across the country during FY00, which it is planning to increases to 7.5 lakh by FY01. Types 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 noncarbonated drinks. Cola lemon and orange are carbonated drinks while mango drinks come under non-carbonated category. The market can also be segment 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, thump up, diet coke, and diet Pepsi etc. Non-cola segment, which constitutes 36%, can be divided into 4 categories based on the types of flavors available, namely: orange, cloudy lime, clear lime and mango.

The Indian government forced coca-cola out of the country in 1977. The company return in October 1993 coincided with the arrival of its archrival Pepsi. The United States multinationals now own 90 factories in India: cocacola 52 and Pepsi 38. They describe these as bottling plants; actually they are pumping stations, each of which extracts up to 1.5m liters of water a day from the ground. It takes nine liters of clean water to manufacture a liter of coke. By Vandana Shiva and translated by Donald Hounam The process used in manufacturing these soft drinks are inherently damaging. The extraction of ground water deprives poor people of their fundamental right of access to clean water. The factories spew out toxic waste that threatens health and the environment. And factories spew out toxic waste that threatens health and the environment. And the products themselves are harmful-the Indian parliament has set up an up a joint committee to inquire into the presence of pesticide residues. In march 2000 coca-cola opened a plant at plachimada, a village in the palakkad district of the southern state of kerala, intended to produce 1.2m bottles of coca-cola, fanta, sprite, limca, thumbs up, kinely soda and maaza every day. The conditional license granted by the local panchayat (village council) authorized the use of motorized pumps, but the company drilled more than six wells and illegally installed high-powered electric pumps to extract millions of liters of pure water. The level of the water table fell from 45 to 150 meters below the surface. Coca-cola then polluted what little water it had not stolen from the community. It started by dumping waste outside its premises. During the rainy season, this spread into paddy fields, canals and wells, causing a serious health hazard. The company abandoned this practice and began pumping dirty water into dry boreholes that had been drilled on-site for the disposal of solid waste. This contaminated the aquifers. As the water supply deteriorated, the total adivasi 1 women had to travel about 5km to fetch drinkable water. A journalist at the daily newspaper mathrubhumi, virender kumar, pointed out that during the time this took them, soft drinks would come out of the plant by the truck-load2. The women organized a dharma (sit-in) outside the factory gates to protest against the depletion of the groundwater.

Because of coca-colas activities, 260 wells-sunk by the authorities to supply drinking water and meet irrigation needs have run dry. This part of kerala is known as the rice bowl but agricultural yields have plummeted. Worse, coca-cola has been distributing the toxic waste from its factory to the villagers as free fertilizer. Analysis has shown that this sludge is rich in cadmium and lead, both carcinogenic. Tribal and farming representatives have protested about the serious damage to harvests caused by contamination of aquifers and springs, and by indiscriminate drilling. They have particularly called for measure to protect traditional sources of drinking water, preserve ponds and water tanks, and maintain navigable waterways and canals. When coca-cola refused to account for its practices, the panchayat withdraw its operating license. It has been alleged that the company responded by offering the councils president, Anil Krishnan, a 300m-rupee bribe ($6.8m), which he refused. But the loss of the license did not cost them the support of the state government, which awarded coca-cola a subsidy of 2m rupees under its regional industrial policy. Pepsi and coca-cola have secured similar grants in all the Indian states where they have set up factories, although their products have negligible nutritional value compared with traditional drinks such as nimbus pani, lassie, panna and sattu. Nor does the damage inflicted upon the food chain and the economy stop here. To sweeten its products, the soft drinks industry increasingly uses maize syrup, high in fructose and damaging to health. Since maize is already used in the industrial manufacture of animal feed, this significantly reduces the amount available for human consumption, depriving the poor of a cheap, basic food. The substitution of maize derived sweeteners for healthier equivalents derived from sugar cane (such as gur and khandsari) has an adverse effect upon farmers, whose subsistence depends on cane crops. In 2003 the district medical officer advised the people of plachimada that their water was so polluted that it was unfit for consumption. The adivasi women were the first to denounce coca colas hydro piracy with their sit-in their initiative sparked national and international expressions of solidarity. In February 2004, as the campaign gathered strength and with a drought worsening the water crisis, keralas chief minister finally ordered the closure

of the coca-cola plant. The entire plachimada panchayat joined the rainbow alliance created by the women. Another panchayat, in perumatty, filed a public-interest suit against the multinational in the kerala high court. In December 2003 Justice Balakrishnana Nair ordered coca-cola to cease illegal extraction of groundwater in plachimada. The reasons for his judgment are as significant as the decision. He pointed out: the public trust doctrine primarily rests on the principle that certain resources like air, sea waters and the forests have such a great importance to the people as a whole that it would be wholly unjust-filed to make them a subject of private ownership. The said resources being a gift of nature, they should be made freely available to everyone, irrespective of their status in life. The doctrine enjoins upon the government to protect the resources for the enjoyment of the general public rather than to permit their use for private ownership or commercial purpose. Our legal system, based on English common law, includes the public-trust doctrine as part of its jurisprudence. The state is the trustee of all natural resources, which are by nature meant for public use and enjoyment. The public at large is the beneficiary of the seashore, running waters, air, forests and ecologically fragile lands. The state as a trustee is under a legal duty to protect natural resources. These resources meant for public use cannot be converted into private ownership. Water is a public good; and since the state and its various agencies are under an obligation to protect groundwater against excessive exploitation, their inaction constitutes a violation of the right to life guaranteed under article 21 of the Indian constitution. the supreme court of India has consistently maintained that the right to unpolluted air and water are an integral aspect of the right to life as defined by this articles. So although there is no law specifically regulating the extraction of groundwater, the panchayat and the state are required to prevent any overexploitation of underground reserves. Coca-colas property rights do not extend to the ground water below the land it owns. Nobody has the right to appropriate the lions share of this resource and the government has no power to license a private third party to extract water in such vast quantities.

Accordingly, the court gave coca-cola a month to cease water-extraction; and it ordered the panchayat and the state to ensure that this demand was met. The women have been the heart and soul of the resistance and lawyers, parliamentarians, scientists and writers have take up their initiative. The struggle has spread to other areas where coca-cola and Pepsi are pumping out aquifers. Following the opening in 1999 of a coca-cola plant at kaladera, a village near jaipur, the capital of the state of Rajas than the water table level below ground fell from 12 to 37.5 meters. The opening of a factory in the mehdiganj district, 20km from the holy city of Varanasi (Benares), caused groundwater to sink by 12 metres and polluted surrounding fields. A coca-cola installation at singhchancher, a village in the baillia district of eastern utter Pradesh, has caused long-term pollution to water and land. Everywhere, protesters are organizing. But the public authorities usual response to demonstrations has been violence. At jaipur, in October 2004, the well-know Gandhi an activities siddharaj Dodda was arrested for taking part in a peaceful march to demand the closure of the factory. It is not only the drying-up of the wells; it is also the risk of contamination. When, despite evidence that their products contained pesticides that represent a danger to health3, both companies refused to produce a list of ingredients, the rajas than high court banned the sales of drinks manufactured by coke and Pepsi. The Supreme Court rejected an appeal and demanded disclosure of the exact contents of the products. So far the drinks remain banned throughout the state. A 1999 study by the all India coordinated research project on pesticide residues showed that 60% of food products sold in the country were contaminated with pesticides and that 14% contained residues above permitted levels. Facts like these give the lie to the myth that multinationals are primarily concerned with safety and trustworthy than the public sector. This prejudice against the public provision of goods and services has helped sell the idea of privatization, which has undermined the supply of clean water at an affordable price. On 20 January human chains formed around coca-cola and Pepsi factories across India. Peoples tribunals gave the hydro-privates notice to quit the

country. The plachimada case proves that people are more powerful than private companies. Such pillaging of water resources could not happen without the complicity of centralizing states. Campaigns have expanded to encompass dam projects and the grandiose plan to divert all the subcontinents rivers from their courses, which is increasingly opposed4. protesters have denounced the privatizations encouraged by the world bank, specifi-cally that of the Delhi water supply5. The struggle against the theft of water is not limited to India. Overexploitation of ground water and major river diversion projects represent a significant threat to the world as a whole. Nature does not distribute water uniformly. If every part of the globe received equal rainfall, with the same frequency and pattern, the same vegetation would spring up everywhere, supporting the same animal species. Our world is built upon diversity; its hydrological cycle is a democratic system for the distribution of water to all living species. Without democratic access to water, there can be no democracy. Adivasi denotes Introduction In April 2004, coca cola India, a wholly owned subsidiary of coca-cola company (coca-cola or coke) launched vanilla coke, the company first flavor extension in India. Launched with much fanfare, vanilla coke was expected to boost coca colas sales in India which had taken a plunge following the pesticide contamination controversy in 2003 Background Coca-cola LTD. Coca cola India Coca-cola had reentered India in 1993, after having withdrawn from the country in the late 1970s in the wake of the foreign exchange regulation act (FERA) of 1973. After reentering India, coca-cola encountered several problems, causing a dent in the parent companys bottom line. In the early

2000s the company launched a series of marketing initiatives that increased both its total sales volume and its market share. Consequently, it received the prestigious woodruff award for outperforming the dozen-old emerging markets of coca-cola worldwide in growth and profitanbility during 2002. coca colas repertoire of brands in Indian included coke, maaza, thumps up, limca, fanta and powdered soft drink brand sun fill. In August 2003, coca-cola found itself in highly publicized controversy when the center for science and environment (CSE), a Delhi-based nongovernmental organization (NGO), reported that the pesticide levels in coke, Pepsi, Miranda and nine other soft drinks of the cola majors had exceeded acceptable norms. Some of these pesticides were extremely toxic. There were fears that in the long run the pesticides could cause cancer and damage the nervous and reproductive system among others. Through coke and Pepsi reiterated that the products they manufactured in India were safe the widely publicized reports caused a sharp dip in sales of the cola majors India. The coca-cola company (coca-cola) manufactures, distributes and markets non-alcoholic beverage concentrates and syrups, including fountain syrups, in the world. The company manufactures and sells non-carbonated beverages, primarily carbonated soft drinks and a variety of non-carbonated beverages. Coca-cola also manufactures and distributes juices and juice drinks and certain water products such as Dasani. The company also has ownership interest in numerous bottling and canning operations. Coca-cola has five strategic business units: North America, Africa, Asia, Latin America, and Europe, Eurasia and the Middle East. Finished beverage products bearing its trademarks are sold in more than 200 countries worldwide. BRIEF: for the nine months ended 30 September 2005, the coca-cola companys revenues increased 6% to $17.55B. net income increased 10% to $4.01B. Revenues reflect increased gallon sales and favorable pricing. Net income also reflects the receipt of $42M related to HFCS law suit settlement, favorable tax settlement related to coca-cola FEMSA, a decrease in other operating charges, an increase in interest income and higher equity income.

The coke study in India Coca-cola made its debut in India in 1950 when pure drinks pvt.ltd a Delhi bases company became the franchised bottler of coca-cola export corporation subsequently 22 franchisers entered in to agreement with cces. In the early days the concrete required to product coca-cola was imported by the bottler from an overseas manufacturing plant of cces. In 1985 a branch of cces was set up at Delhi to supply bottler with concrete and beverage base in 1964 fanta orange flavour introduced by cces. Since it applearnce in 1958, coca-cola had maintained its top position in soft drinks industry till its exit. The cces expanded to a grant 100 crore and complex of 22 bottling plants operated in 13 states through 2 lakhs retail outlets. In 1971 sales touched 637.78 lakhs yielding a profit of 31.37 lakhs before taxation was 55 percent to 60 percent. This percentage is 35 to 40 percent more than what customer goods generally fetched. The cces used to sell 25 lakhs kegs. Of concentrate, get profit of 49 percent of his sale profits. Repatriated to the USA. Exit of coca-cola; In 1975 govt of India asked cces to reduce to reduce its foreign (capital) holding. By that time foreigner held entire capital gave two Indian branches should dilute its equity to 40 percent and transfer its technological knowhow to Indian economy. The company agreed to former condition. It didnt accept the latter. If wanted to keep a liaison and quality control coke concentrate. The Govt of Indian turned down their pica finally in 1977 cces left the country. Since then the vacuum created by the end of coke became the breeding ground for indigenous cola. Cokes re-entry: In the wake of the Govt liberalization policies many multinationals policies have planned to get hold the Indian economy. Pepsi-co Itd has entered the market fiver year ago after serious controversy. The $13 billion Atlanata based mega-corp. coco cola has finally entered the Indian marketing after a 16-year exile. Coca cola Indian limited has acquired the bottling lights of

parley brands thumps up, gold spot limca mazza and citra ( except bislericub soda) for $ 40 million November 1993. Ramesh chuhan the managing director of parle exports will be chairman and 50 percent parter in a new bottling company which will be set up in joint venture with coca cola India Itd., and he will hold coke franchises in Delhi, Bombay bang lore, surat and ahmedbad returning to India after it pulled out a in a blaze of publicity and controversy coco-cola has opted for a deliberately low-key relaunch. On dussera day last it high Agara and its surrounding districts the location was chosen because of its proximity to bottling facility in near by hatchers the first plant to grade to cokes international standards. Despite its low start in the Indian market coco-cola has one enviable advantage over its main competitor the acquisition of chauhans parle with this deal. Coke has not only managed to eliminate what would have been its main domestic rival, but has piggy backed on its bottling and distribution networks parle has a 60 percent share of the branded soft drinks market (Pepsi ha 26 percent while pure drinks traits behinds with roughly 10 percent and the rest is shared by others). But acquisition also practically explain the delay. When coke decides to finally throw its hat back in to the ring last year it firs back in to the last year approached pure drinks for possible tie up. Coke and pure drinks go back a long way in 1940 coco-cola had given captain sardar mohan singh a franchises to start its first bottling unit in what was then a garage of premnath motors in central Delhi. By 1977 coke left Indian rather than reveal its secret formula as it was asked to by then govt. pure drinks had four to five bottling plants. Now than coke wanted to make a come back. It approached the descendants of mohan singh to find out if they were interested. That deal couldnt materlise. When Pepsi singed a memorandum of understanding with Punjab. Agro industrial and voltas in 1988, the idea then was to come in to India with a food project, while soft drinks would provide it very small segment of the whole package coca-cola mean while also bagan seriously looking at the huge untapped Indian market. At the same time when Pepsi came in the Atlanata based multinational made an application to set up a coke concrete plant in free trade zone. Where 75 percent would be exported out and the remainders sold in the Indian market. The project with adl godrej almost came through but a tough

fight put up by chauhanas well as government delays forced coke to pull at the eleventh hour. For three years Pepsi ruled the roost competing locally with pure drinks and parle. All this while coke was biding its time in 1991 it began talking to rajan pillai about setting up an nri project in which pillai would have a majority state and coke would held about 26 percent but then as the financial mess in which pillai was in become apparent coke once again developed cold feet and decided to act accordingly the company implemented its disengagement strategy activating a clause in its memorandum of understanding (mou) with pillai which stipulated that should the Indian government permit a 100 percent owned venture by coke in the country a would have the option of going it along. On April 5, 1993, therefore coke applied to the foreign investment promotion board (fipb) gave the clearance and by may, 1993 coke had pulled out of its arrangement with pillai paying him 53 million as compensation and now the decks were cleared for serious talks with chauhan. Mean while convinced that coke would benefits from an alliance with parle and chatting at the delay in beginning operations. Jaydeve h raja one of the chief architects of the deal had flown to Atlanta in March 1993 to make a presentation to a senior management team headed by I. Neville isdell presiden of cokes Asian and European operations. Chauhans rationals behind the demand being involving in Briton would mean and equal partnership with coca cola with and equity state in key concrete manufacturing company. Simultaneously chauhan approached to the boston based management consultants ME kinesy and company to suggest the ideal arrangement and hammer out the best possible bargain for him. As if ADILL a senior manager at MC KINSEY from newyork represented him in negotiations with coke in july 1993, negotiations at last were translated in to an agreement chauhan visted Atlanta to sign its first MOU with coke. It was not only a formal declaration of the intention of the two sides to collaborate in Indian but also spell put that there would be two joint ventures between coke and parley. This was meant to be kept totally secret. But the news of the alliance had leaked out evoking an immediate reaction from parles bottlers. They were afraid of being made redundant once the ideal was finalized. Besides the pressure from his bottlers two more apects made ramose shaun to rethink about his plan. Firstly the difference with his brother parakeet shaun was not satisfied by the price being quoted by coke. Therefore, to work out the price

to be paid for paroles brands the brand equities of thumpup, gold spot citra limca and mazza were calculated. Two considerations determined the final price of $40 million for the brands the highly profitable nature of parle exports main concrete and bottling operations which made a profit of RS 20 crores on turnover of rs 60 crores in 1992 and dominant market shares of parle brands in their respective categories (thumps:55 percent; goldspot;75 percent; citra:65percent ; limca:85 percent). The arrangement between coca cola and parle will now see the information of two companies with shaun as the chairman of both. The first will be an an investment company for bottling operations which will pick up equity stakes in the bottler companies and well be an equal partnership between coke and parle while the second will be a marketing services company. Present soft drink manufacturers: Pure drinks Pvt.Ltd Former bottlers of cces. The Delhi based company sells soft drinks through its franchised territory throughout the country. It owns 10 bottling units and 32 franchise units currently manufacturing campacol, orange, lemon. The company ha 10 percent of the soft drink market flavour wise. Indian Beverage company: It was Delhi based company formed by seven former bottler of coca-cola under the brand of name nove. The company launched its lemon and orange flavors in 1979. Dukes and company: It was founded by dinshaw pundole in 1980 in Mumbai. Mc dowels company Me dowels entered the soft drinks industry in 1984-85. The companys brand names are thrill for cola sprint for lemon. Its has its products bottled in 20 plants. Modern manufacturer:

The Delhi based company launched 77 (double seven) in September 77 through its 10 franchised units. Latter it introduced lemon and orange flavors. Pepsi food (PVT.)LTD Pepsi co.., which was in Indian from 62-95, has left this company as its products were not found acceptable to the Indian public. Pepsi co. inc. the $13 million soft drinks snack and fast food canglomerable has finally re entered in to the Indian market after a few years of hectic lobbying and controversy. The Punjab agro industrials company (with 36 percent of equity) is promoters of Pepsi co. ( with 40 percent equity) to form an Indian market Pepsi co. inc. Pepsi has signed a letter of indent in which the. Following clause are there That the sale of soft drinks should in to exceed 25 percent of the total Turn over achieving a foreign in flow out flow ratio of 5:2 accepting 50 percent export on exfactory production value. Calking up a cumulative export total of RS 194 crore during 10 years. Will have to export at least 50 percent of its total turnover of which be 40% items manufactured by Pepsi. Dodged by controversies one or another since its thinking of entering in to Indian market Pepsi has changed its plants beings in predominate. Soft drinks vertex to predominantly agricultural one. The soft drink concrete plants and the potato and grains processing plants in Punjab. Sangal districts and the fruit and vegetable processing plants in hosiarpur districts have plant nearly double the amount sanctioned earlier. It manufacturers Lehar Pepsi a cola drink, 7up a clear lemonade Miranda an orange drinks. Since a mango drink and teem a lemon drink. PARLE (PVT) LIMITED.(CONVERTED TO COCA-COLA INDIA LTE) PARLE has its head quarters at viley parle in Mumbai the place which gave this company its name. In 48 parle exports (PVT) LIMITED, started its soft drinks production in India with the name Indian private owned company.

This owned by chauhan brothers in Mumbai. By 1962, one million sales had been made by parley. In 1961 parle was split in to two Biscuit industrials and parle bottling. Again in 1966 parle bottling was divided in to two clear divisions. Parle exports the company headed by ramesh chauhan which supplied the concrete and provides advertising support t its 62 franchises all over the country and parle beverages headed by prakash chauhan which looks after parles own bottling there were only two bottling units owned by parle itself one at Mumbai and another at Delhi. At the launch of thumsup the company spent nearly RS 20 lakh on advertising. While today it spends together nearly rs 40 crore annually. The sale of parle products increases drastically because of the vacuum created by with drawl of coco-cola from Indian market. Local soft drinks industry in coastal areas of Andhra Pradesh The ARTOS soft drink was established in 1920. In the year 1957 was converted in to ramachandra raju stockiest to a manufacture and sell soft drinks under the name of artos for these purpose-imported plants was lnstalled. Initially company introduced 25 varieties of soft drinks. After some time responding three varieties of soft drinks. These include ARTOS color, ginger and artos orange; initially they planned to manufacture 50,000 cases per year. The company also manufactures soft drinks concrete and they use these concretes in their own soft drinks manufacturing. The equipment of the organization comprises bottle workers boilers water purifiers, and bottle filters.

OBJECTIVES TO know about the business activities of vimal bottling company. TO study the marketing activities of vimal bottling company. TO study the consumer opinion about soft drinks of vimal company. TO describe the buying behavior of the soft drink consumers in terms of their preference and indifferences. TO suggest various measures wherever necessary.

METHODOLOGY For the present study data has been colleted both primary and secondary sources. Primary data: Primary data was collected from predicated number of branded soft drink buyers within areas of eastgodvari district. The respondents were choosen selectively and deliberately from the age groups of 15 to 16 years. The number of respondents is 250 in the sample. A wellstructured questionnaires was in advance. It was personally envisaged among the respondents. Secondary data: A lot of information and data were to be gathered from secondary sources. The conceptual framework for the study was from public titiles on marketing management consumers behavior and marketing research. The information relating to he soft drink industry in general was collected from published article current literature available in standard business magazines and journals.

SCOPE OF THE STUDY The study focuses its attention on marketing activities and consumer opinion in general there is a wider scope for the functions of the organizations. The scope of the subject area is the east godvari district of the andhrapardesh, through the company has got the market share in the west godvari district also. Further the total respondents were two hundred and fifty which are divided accordingly to the age group and the sex. The age group consists of bellows 15 years, 15-20 years, 35-45 years, 35-48 years and finally 58-60 years. I admit that the scope of the study is not much comprehensive but keeping a view of the limited time I conducted my sparing no efforts.

LIMITATION

LACK OF TIME TIME IS NOT SUFFICIENT FOR THE COLLECTION OF MORE INFORMATION A SCOPE OF THE STUDY LIMITED TO EAST GADAVARI EXACT INFORMATION IS NOT AVAILABLE SOME OF THE COMPANIES ARE VERY BUSY SO THAT THE INFORMATION COLLETED FROM THEM IS A BIT DIFFICULT. DEALERS ARE WIDELY DISTRIBUTED SO IT IS SOMEWHAT DIFFICULT INAPPROUCHING THEM. UNWILLINGNESS Unwillingness of the company employees to provide certain information for the project to maintain secrecy Data: The study is mainly carried out based on secondary data The study is based on historical data and information provided in annual reports. The study is depends upon the accuracy of the data provided

PROFILES OF VIMAL BOTTLING COMPANY

BRIEF PROFILE OF VIMAL BOTTING UNITCO The vimal bottling company was started in 1983 as a partnership firm of 5 partners and located at samalkota in east godvari district. The total cost of this company is 2 cores 50 lakhs. The success and growth achieved by the company can been sits increasing sales which has become four fold in the last 10 years. PRODUCTS This company producing soft drinks with all flavors i.e lemon orange zinger pineapple and cola, of these categories each one of one has its own contribution in sales. Zinger and lemon type products have the highest sales.

PRODUCTION PROCESS Plant capacity: The company has installed a sum: automatic plant lay out. The present capacity of the plant is 50 crate/ hr. i.e., 400 crates per shift of 8 hours. During the months of March to June due to peak demand, the plant is operated its full capacity i.e., 600 crates per shift of 12 hours. During the other months of production per shift are 200 crates per shift. PRODUCTION SCHEDULE: The production schedule fixed daily by taking in to considerations the market demand the availability of empty bottles and the inventory position of filled bottles. The production schedule for each brand is fixed daily productions generally in summer the demand reaches its peak and production will be extended up to 4hours to existing shift. RAW MATERIAL REOUIRED: Raw materials are the flavor essence concentrate supplied by renews company sugar and water. Sugar is purchased in bulk from the wholesale sugar market. Water is further treated with chemicals purified with water is then sent through steel pipes to a large container when Co2 is directed to some extent of 10 liters to 100 liters. This is further directed where it is mixed with sugar and heated up to 80 degrees in heat exchanges. In the immediate process it losses heat. Then this syrup is directed to syrup tanks where it mixes with essence at and their proportion. This liquid is filled in bottles which are first washed with soap latter with a dilute solution of soap in a bottle washes. Then they are filled and cropped at filled and crowning units capacity of filler and crowing units capacity of filler and crowning units is bottles per unit. PLANT LAY OUT: The layout of bottling plant installed by company is confirmed to produce on line out. The machines and equipments are arranged according to the sequence of operations. The machines and workers are specialized in the performance of specific operations such as preparation of syrup. Filling the bottles aerating and scrolling the bottles with liquid.

QUALITY CONTROL The company takes great care to maintain the quality of the products. The bottles are critically examined for impurities continuously as the bottles move out. The flavor concepts sugar percentage and tees at the product are check

ORGANISATION CHART VIMAL BOTTLING UNIT MANAGING PARTNER MANAGER Sales officer Accounts Security officer (a/o)

Urban Sales supervisor Sales man cum driver Lauders

rural sales supervisor salesman-cum-driver lauders

FUNCTIONS In this organization he is in charge of entire marketing department. He looks after the day-to-day sales deviations from targets advertisement, distribution sales promotion purify direction etc. and responsible person to manager and managing partner. ASSTSALES OFFICER: He assists the sales officer. He collects all the data, arranges the data and then passes it on the sales officer. SALES SUPERVISOR: He is in charge of two or more routes of sales. He makes the day-to-day sales and collection chart and submits to his higher as Asst sales officer. SALESMAN-CUM-DRIVER: It is his duty to see the distribution of products in a particular area assigned to him. He has two roles of the van and collection of money and delivery of products in this area. LAUDER: He helps in the physical movement of product from warehouse to van to dealers place. MARKETING ACTIVITIES: VIMAL BOTTLING company marketing activities namely east godvari and west godvari districts. This company has divided in to total marketing area in to different peoples are managed and served efficiently it has segmented the total market on the basic of purchasing power area outlets and sales

volume etc. The VIMAL BOTTLING Company is using different levels of channels according to their convenience and order to serve the people in better way DISRIBUTION CHANNELS: The channel of distribution in this company is wholesales to retailer to customer. DISRIBUTION NETWORK VIMAL Bottling Company wholesales net work Eastgodvari district. S.NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 DEALER IN AREA SAMOLLKOTA PEDDAPURAM KAKINADA RAJAHMUNDARY JAGGAMPETA ANNAVARAM TUNI PRATHIPADU KATHIPPUDI SANKAVARAM SITANAGARAM RAMPACHODAVARAM GOKAVARUM MARENUMALLI DEVIPATANAM YELESWARAM RAJAVOMMANGI ADDATEEGALU GANGAVARUM THONDANGI PITHAPURAM GOLLAPROLLU TALLAREVU MANDAPETA VELANGI DEALER IN DIST EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI

26 27 28 29 30 31 32 33 34 35 36 37 38 39

RAVULUPALEM KOTHAPETA RAZOLE JAGGNNAPETA AMALAPURAM MUMMIDIVARUM KADIYAM ATREYAPURAM ANGARA DRAKSHARAM PAMARU ALLAVARAM MUKTESWARAM YANAM

EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI EAST GODVARI

RETAILERS WORK COVERAGE IN EAST GODVARI DISTRICT AND WEST GODVARI DISTRICTS S.NO 1 2 3 4 5 TYPEOF OUTLET PAN SHOPS HOTELS CINEMA THEATRES COOL DRINKSSHOPS BAKERIES NO OF RETAILERS 15,000 320 22 120 34

TOTAL CONSUMERS

15,496

VIMAL Bottling Company supplies crates of soft drinks to wholes sales. They are the distributors in particular area. Then wholesalers supply soft drink to the retailers. From retailers the drinks are selling to the consumers. If the order is in bulk quantity. PRICING IN VIMAL BOTTLING COMPANY The products of VIMAL soft DRINKS were economically price RS 5.00 per bottle when compared with that of other popular company products RS 7.0 per bottle. The pricing structure was as follows Factory price Transportation Price to the dealer Price to the retailer Price to the consumer RS 70 RS 10 RS 80 RS 100 RS 5.00 RS 120 PER CRATE PROMOTION This company adopting so many approaches and strategies for promotion of its products by direct sales to the customers discounts for party orders intensive advertising on hoardings paintings on pan shops through slides at cinema theatre media and public please. This company collecting the deposit amount for the outlets at the lower rate when compared with other companies. INCENTIVES TO SALES PEOPLE The company gives incentives to all sales force. They are given normal wages and incentives are paid in addition to the their wages when production target is achieved. COMPETITORS

The company has facing more competition from MULTINATIIONAL COMPANYS like COCO-COLA PRODUCTS. PEPSI PRODUCTS AND OTHER LOCAL PRODUCTS. BUT IN THE EAST GODVARI DISTRICT this company products having good demand and image. SALES: DETAILS OF VIMAL BOTTLING COMPANY YEAR 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 AMOUNTS 2.30 LAKHS 3.10 LAKHS 3.60 LAKHS 3.92 LAKHS 4.60 LAKHS 5.23 LAKHS 5.89 LAKHS 6.30 LAKHS 7.43 LAKHS 8.85 LAKHS NUMBER OF EMPLOYEES Production Administration Sales Total 30 12 102 142

THEORITICAL FRAME WORK

THEORITICAL FRAME WORK OF MARKETING MIX THEORITICAL FRAME WORK OF MARKETING Marketing occupies an important role in the organization of business unit. It is of the important line activities of business operations. It is of the important line activities of business operations. The changes that are taking place in the economy reflect every often field. The job of business is to produce goods and servies to the consumers. In and economy characterized by scarcity of men; materials and money. The job of businessman has become more complex. More over with increases in the competition increases in the competition increases in the needs of the consumers and widening of markets; the business is placed in the more difficult position in producing and selling of goods. The performance of their activities felt necessary for the success and survival of the business organization. In this context the activity of marketing mix came in to existence. Marketing management take place when at least one party to a potential givers thought to objectives and means of achieving defined responses from other parties. According to American Marketing association marketing management is the process of planning and executes conception pricing promotion and distribution of ideas goods and services to create exchange that satisfy individual and organizations objectives. Thus a definition recognize marketing management as prospects of involving analysis planning implantation and control. That is covers ideas goods and services; that is rest on the nation exchange and that the goal is to produce satisfaction for the parties involved. The function of distribution involves both channelisation of products/ services and their physical distribution. Marketing is concerned with business and functions involved in it in include marketing research product planning pricing selling advertising and distribution. Through these function are identified with operations unique to them individually they are performed in isolation they internal among themselves to produce an integrated business function called marketing. The marketing management executive closely coordinates activities of different marketing connection right from the conception of the product idea to the consumption of the finally developed and delivered the product. The result of this intra marketing coordination is the development of marketing

mix built in potential for the maximum impact in the marketing place. Besides marketing decision scar heads coordinates with other corporate fun. Ex product finance personal etc. so as to produce a well knit effective and profitable corporate action directed towards achieved of the turn objective of consumer satisfaction and targeted return on investment. Marketing mix is an optimum combination efforts indifferent functional areas of marketing called components like market research produce price distribution and communication including sell in such a market objective a and targets are achieved with maximum efficiency and maximum cost that the firm uses of purpose its marketing in the target market. There are literally dozens of marketing mix tools popularized a four classification of their tools called the fours product place price and promotion. MARKETING MIX The world market is derived from a Latin word MARCATUSMEANS merchandise were traffic trade over where trade is conducted The term market is quite comprehensive in nature as it includes all resources and set of activities necessary to direct and facilitate the flow of goods and services from the producer to ultimate customer the process of distribution. THE TWIN ACTIVITIES, WHICH MOST SIGNIFICES ARE: Matching the product with demand. Transfer of ownership and possession at even state in the flow of goods from primary producers to the ultimate consumers. The American marketing association defines marketing as a process of planning and executing of the conception pricing promotion and distribution of ideas goods and services to create exchanges that satisfies the individuals and organization activities, from the social point of view marketing is the process of creating and delivering a higher standard of living. This marketing deal with identifying and meeting human and social needs in short we can say marketing means meeting needs profitability. MEANING OF MARKETING MIX:

Marketing mix is the set of marketing tools that firm uses to pursue its marketing objectives in the target market. McCarthy classified these tools in to four board groups that he called the four ps of marketing: product price place and promotion.

Marketing mix PRODUCT PRICE PROMOTION sales promotion advertising sales force public relations direct marketing PLACE channels coverage assortment location

Product variety list price Quality design Discount Features allowances Brand name payment period Packaging credit terms Service Warranties Returns

The four represent the seller view of the marketing tools available for influencing buyers. From a buyers point of view each marketing tool is designed to deliver a customer benefit. MARKETING ENVIROMENT A firm marketing environment consists of the factors and forces outside marketing that effect marketing managements ability to develop and maintain successful transactions with the target customers. FACTORS EFFECTING MARKETIGN ENVIROMENT The marketing environment can be broadly divided in to

Uncontrollable factors of external environment Controlled factors of external environment Uncontrollable factors include: Macro environment Demography Competition Economy Legal & government factors Technological factors Social factors Microenvironment An organizations marketing system is also shaped to some extent by internal forces that are largely controllable by the markets. These internal factors influences include a firms production financial human resources research & development company location & image. ROBERT LAUTERBORN suggested that the seller four PS correspond to customer FOUR CS FOUR PS Products Price Place Promotion FOUR CS Customer solution Customer cost Convenience communication

PRODUCT

A product is anything that can be offered to a market to satisfy a want or need products that are marketed include physical goods services experiences events persons places properties organizations information and ideas. PRODUCT LEVEL In planning its market offering the market offering the marketer needs to think through five level of the product. Each level adds customer value and five constitute a customer value hierarchy. Fundamental level is core benefit-fundamental service or benefit that the customer is really buying Basic product marketer turns core benefit in to a basic product Expected product a set if attributes and conditions buyers normally expect when they purchase this product Augmented product which exceeds customer expectations Potential product- all possible augmentations and transformations the product might undergo in the future. Product classification: Products are classified on basic of characteristics durability, tangibility and use. Durability and tangibility 1. Nondurable goods 2. Durable goods 3. Services Consumer goods classification 1. 2. 3. 4. convenience goods shopping goods specialty goods unsought goods

product mix:

A product mix (also called product assortment) is the set of all products and items that a particular seller offers for sale. Branding is major issue in product strategy A brand is a name term sign symbol or design or a combination of them intended to identify the goods or services of one seller or group of seller and differentiate them from those of competitors. Packaging and labeling Most physical products have to be packed and labeled. Packaging includes the activities of designing and producing the container for a product. Labeling Seller must label products. The label my be simple tag attached to product or one elaborately design graphic that is part of the package. Priced Price is the marketing mix element that produces revenue, the others produce costs. Setting the price; A firm must set the price for the first time when it develops a new product, when it introduces its regular product in to new distribution channel or geographical or geographical area and when it when it enters bids on new work. The firms as to considering many factors in setting its pricing policy. Selecting the pricing objective Determining demand Estimating cost Analyzing competitors costs prices and offers Selecting a pricing method Selecting the final price

Price adaptation strategies are: Geographical pricing Price discounts and allowances Promotional pricing Discriminatory pricing Product mix Pricing any product is an important task, as it ultimately decides a number of factors the quality sold, customer acceptance and mostly importantly, it influences the gross and net revenue that can be realized. The initial pricing calls attention for the following factors Demand for the product Possible reaction of the competitors Expected market shares Company policies regarding products channels and promotion. Price may be based on costs fixed in variable marginal or total costs involved in producing and moving the product. What ever be the pricing method adopted. Consumer psychology should be given utmost importance in pricing certain products as it largely influences the price elasticity a product enjoys for instance price may be considered an indicator of quality especially when cost aspects are not known. All the costs that are involved in producing distributing and handling etc.., should be covered in the long run and a reasonable surplus needs to be created to survive by any business unit. The final element of the market mix that must be considered is price represents the cost that the buyers must accept the order to obtain the product. It involves not only money, but also opportunity cost and energy cost. It is an important element of marketing mix. It can be used as a strategic marketing variable to meet competitors. It also a direct source of revenue for the firm. It must not only cover the cost but also leave some margin to generate profit for the firm. However price should be so high as to frighten the customer. Price is also an element which is highly perceptible to the

customer and significantly affects theirs decisions to buy a product. In general price directly determines the quality to be behavior. Promotion Promotion is the element in the organization marketing mix that service to inform persuade and remind the market of a product and for the organization selling it in hopes of influencing the recipients feeling beliefs or behavior.

PROMTIONAL METHODS There are five forms of promotion: Personal selling the direct presentation of a product to a prospective customer by a representative of the organization selling it. Personal selling takes place face to face or over the phone and it may be directed to middleman or a final consumer Adverting is impersonal mass communication that the sponsor has paid for and in which sponsor is clearly identified. The most familiar form of adverting is found in board cast (TV and radio) and print media (newspaper and magazines). Sales promotion is demand stimulating activity designed to supplement advertising and facilities personal selling. Its is paid for by the sponsor and frequently involves a temporary incentive to encourage purchases. Included in sales promotion are wide spectrum of activities such as contests, trade shows in store displays rebates premiums discount and coupons. DISTRIBUTION The development of the arrangements necessary to transfer ownership of a product and transport the product form where it is produced to where it is finally consumed. Distributed role with in a marketing mix is getting the product to its target market. The most important activity in getting a product to market is a arranging for its sales from producer to final customer. Other common

activities are promotion the product storing it and assuming some of the financial risk during the distribution process. A middleman is business firm that renders services related to the sale and for purchases of a product as it flows from producer to consumer. CHANNELS DISTRIBUTION: Most producers work with market intermediates to bring their products to market. The market intermediates make up market channels trade channel or distribution channels. Marketing channels are set of interdependent organs involved in the process of making a produces a server available for use or consumption. --------------STERN AND EL --- ANSAR

In a ever- widening market, particularly in consumer goods market distribution channels have distinctive role in successful implementation of market plan and strategies. Searching buyers and sellers Marketing goods for the requirement of the market Offering product in the form of assortment or packages able and acceptable by the consumer Implementing price strategy in such a manner that would be acceptable to the buyer and ensure effective distribution. Providing feed back information for marketing intelligence and sales forecasting Helps in the creation and establishment of market for a new product. COMPONENTS OF DISRIBUTION CHANNELS. All kinds of merchant middleman such as distributions stockiest, dealers wholesalers and retailers. All agents middleman such as commission agents brokers and ware house keepers. Distribution channel consists of the set of people and firm involved in the transfer of title to a product as the product moves from producer to ultimate consumer of business user. A channels consisting only of producer and final customer with no middleman providing assistance is called distribution. In a contrast a channels of producer final customer and at least one level of middleman represent indirect distribution. CHANNELS DESIGN DECISIONS Designing a channel system calls for Analyzing customers desired service out put levels Establishing objective and constraints identifying major channel alternative. Evaluating the major alternative.

CONSUMER MARKETING CHANNELS Manufacturer O level Manufacturer Wholesaler 2nd level Jobber Retailer Consumer Retailer Consumer Consumer 3rd level Manufacturer Wholesaler Jobber Retailer Consumer

1st level Manufacturer

Buyer behavior Dominant family purchase ---cozena Demographic factors The consumer buying process

Maslaws hierarchy of needs Socio economic classify scheme Types of buyer behavior The buying decision process Organization buying behavior Demographics factors Age Stage in family cycle Occupation Economic circumstances Life styles Social influence variables Family back ground Reference groups Roles and status

Consumer buying process Marketing inputs Product Price Promotion Place consumer purchase decisions product choice location choice brand choice other choice Psychological input Culture Attitude Learning

Perception Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand Why consumer make the purchase that they make? What factors influence consumer purchase? The changing factors in our society? Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for: Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a marketing mix (MM) that satisfies (gives utility to ) customers therefore need to analyze the what where when and how consumer buy. Marketing can better predict how consumer will respond to marketing strategies. Stages of the consumer buying process Six stages to the consumer buying decision process (for complex decisions.) Actual purchasing is only one stage of the process. Not all decision process lead to a purchase. All consumer decisions do not always include all 6 stages determined by the degree of complexity discussed next. The 6 stages are:
1.

problem Recognition (A wareness of need)---difference between the desired state and the actual condition. Deficit in assortment of products. Hunger stimulates your need to eat. Can be stimulated by the marketer through product informationdid not know you were deficient? I.E.., see a

commercial for a new pair of shoes stimulates your recognition that you need a new pair of shoes. 2. information search internal search memory. External search if you need more information. Friends and relatives (world of mouth). Marketer dominated sources; comparison-shopping; public sources etc. A successful information search leaves a buyers with possible alternatives the evoked set. Hungry want to go out and eat, evoked set is Chinese food Indian food Burger king Klondike Kates etc
3. evaluation of Alternatives

need to establish criteria for evaluation features the buyers wants or does not want. Rank /weight alternative or resume search. May decide that you want to eat something spicy Indian gets highest rank etc. if not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketer try to influence by framing alternatives. 4. purchase decision Choose buying alternative includes product package store method of purchase etc. 5. purchase May differ from decision time lapse between 4&5 product availability.

6. post purchase evaluation outcome: satisfaction or dissatisfaction. Cognitive dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. after eating an Indian meal may think that really you wanted a Chinese meal instead. HandoutPillsbury 1800#s 1-800#s gives the consumer a way of communicating with the marketer after purchase. This helps reduces cognitive dissonance when a marketer can answer any concerns of a new consumer Types of Consumer Buying Behavior Types of consumer buying behavior are determined by: Level of involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. High involvement purchaseHonda motorbike high priced goods products visible to others and the higher the risk the higher the involvement. Types of risk: Personal risk Social risk Economic risk The four type of consumer buying behavior are: Routine Response/Programmed Behaviorbuying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Example include soft drinks snack foods milk etc. Limited decision making buying product occasionally. When you need to obtain information about unfarmiliar brand in a familiar product category perhaps. Requires a moderate amount of time for information gathering. Example include clothesknow product class but not the brand.

Extensive decision making /complex high involvement unfamiliar expensive and /or infrequently bought products. High degree of economic/performance/psychological risk. Example include cars homes computers and education spend a lot of time seeking information and deciding. Information from the companies MM; friends and relatives store personnel etc. Go through all six stages of the buying process. Impulse buying no conscious planning. The purchase of the same product does not always elicit the same buying behavior product can shift from one category to the next for example: Going out for dinner for one person may be extensive decision making(for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner whether it is an anniversary celebration or a meal with a couple of friends will also determine the extent of the decision making. Categories that Effect the Consumer Buying Decision Process A consumer making a purchase decision will be affected by the following three factors: Personal Psychological Social The marketer must be aware of these factors in order to develop an appropriate MM for its target market. Personal Unique to a particular person. Demographic factors. Sex, Race Age etc. Who in the family is responsible for the decision making ? young people purchase things for different reasons than older people. Handoutfrom choices of checkout--Highlights the difference between male and female shoppers in the supermarket. Psychological factors

Psychological factors include Motives A motives is an internal energizing force that orients a persons activities toward Satisfying a need or achieving a goal. Actions are effected by a set of motives not just one. If marketers can identify motives then they can better develop a marketing mix. MASLOW hierarchy of needs!! Physiological Safely Love and Belonging Esteem Self Actualization Needs to determine what level of the hierarchy the consumer are at to determine what motivates their purchases. HandoutNutriment Debunked Nutriment, a product marketed by Bristol Myers squibb originally was targeted at consumers that needed to receives additional energy from their drinks after exercise etc.., fitness drink. It was therefore targeted at consumers whose needs were for either love and Belonging or esteem. The product was not selling well and was almost terminated. Upon extensive research it was determined that the product did well in inner-city convenience stores. It was determined that the consumer for the product were actually drug addicts who couldnt not digest a regular meal. They would purchase nutriment as a substitute for a meal. Their motivation to purchase was completely different to the motivation that B-MS had originally thought. These consumers were at the physiological level of the hierarchy. B-MS therefore had to redesign its MM to better meet the needs

of this target market. Motives often operate at a subconscious level therefore are difficult to measure. Perception What do you see?? Perception is the process of selecting organizing and interpreting information inputs to produce meaning. IE we chose what info we pay attention to organize it and interpret it information inputs are the sensations received through sight, taste, hearing, smell and touch. Selective Exposure select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current intensity of input changes (sharp price drop). Selecting Distortion changing / twisting current received information inconsistent with beliefs. Advertisers that use comparative adverstisements (pitching one product against another) have to be every careful that consumer do not distort the facts and perceive that the advertisement was for the competitor. A current exampleMCI and AT&T do you ever get confused? Selecting Retention Remember inputs that support beliefs forgets those that dont. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes 60% of purchase are unplanned. Exposed to 1,500 advertisements per day. Cant be expected to be aware of all these inputs, and certainly will not retain many. Interpreting information is based on what is already familiar on knowledge that is stored in the memory. Ability and knowledge Need to understand individuals capacity to learn. Learning changes in a persons Behavior caused by information and experience. Therefore to change consumers behavior about your product, need to give them new information re:product.free sample etc. south Africa..open bottle of wine and pour it!! Also educate American consumers about changes in S.A. need to sell a whole new country.

When making buying decisions buyers must process information knowledge in the familiarity with the product and expertise. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. Non alcoholic Beer example: consumer chose the most expensive six-pack, because they assume that the greater price indicates greater quality. Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior. Attitudes Knowledge and positive and negative feelings about an object or activity maybe tangible or intangible living or non- livingDrive perceptions individual learns attitudes through experiences and interaction with other people consumer attitudes towards a firm and its products greatly influence the success or failure of the firms marketing strategy. Handout Oldsmobile Oldsmobile vs. Lexus due to consumers attitudes toward Oldsmobile (as discovered by class exercise) need to diassociate Aurora from the Oldsmobile name. Exxon Valdez-nearly 20,000 credit cards were returned or cut up after the tragic oil spill. Honda You meet the nicest people on a Honda dispels the unsavory image of a motorbike rider, late 1950s. Changing market of the 1990s baby boomers aging, and Hondas market returning to hard core. To change this they have a new slogan come ride with us. Attitudes and attitude change are influenced by consumers personality and lifestyle. Consumers screen information that conflicts with their attitudes. Distort information to make it consistent and selectively retain information that reinforces our attitudes. IE brand loyalty.

There is a difference between attitude and intention to buy (ability to buy). Personality All the internal traits and behaviors that make a person unique uniqueness Arrives form a persons heredity and personal experience. Examples include: Workaholism Compulsiveness Self confidence Friendliness Adaptability Ambitiousness Dogmatism Authoritarianism Introversion Extroversion Aggressiveness Competitiveness. Traits affect the way people behave. Marketers try to match the ago the store image to the perceived image of their customers. There is a weak association between personality and buying behavior this may be due to unreliable measure. Nike ads. Consumers buy products that are consistent with their self-concept.

Lifestyles Recent US trends in lifestyles are a shift towards personal independent and individualism and a preference for a healthy natural lifestyle. Lifestyles are the consistent patterns people follow in their lives. EXAMPLE healthy foods for a healthy lifestyle. Suntan not considered fashionable in US until 1920s. Now an assault by the American Academy of Dermatology. Social factors Consumer wants, learning motives etc. are influenced by option leader, persons family, reference groups, social class culture. Opinion leaders Spoken person etc. marketers try to attract opinion leaders. They actually use (pay) spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.) Roles and family influences Roles... Things you should do based on the expectations of you from your position within a group people have many roles. Husband father employees individuals role are continuing to change therefore marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must a understand: That many family decisions are made by the family unit Consumer behavior starts in the family unit Family roles and preferences are the model for childrens future family (can reject/alter/etc)

Family buying decisions are a mixture of family interactions and individual decision making Family acts an interpreter of social and cultural values for the individual. The family life cycle: families go through stages, each stage createsdifferentconsumerdemand: Bachelor stage.most of BUSAD301 Newly married, young, no children. Me Fullest nest I youngest child under 6 Fullest nest II youngest child 6 or over Fullest nest III older married couples with dependent children Empty nest I older married couples with no children living with them, head in labor force Empty nest II older married couples no children living at home head retired Solitary survivor in labor force Solitary survivor retired Modernized life cycle includes divorced and no children. Handout Two Income Marriages Are Now the Norm Because 2 income families are becoming more common, the decision maker within the family unit is changingalso, family has less time for children and therefore tends to let them influence purchases decisions in order to alleviate some of the guilt (children influences about $130 billion of goods in a year) children also have more money to spend themselves. Reference Groups

Individual identifies with the group to the extent that he takes on many of the values, attitudes or behavior of the group members. Families friends, sororities civic and professional organizations. Any group that has a positive of negative influence on a persons attitude and behavior. Membership groups (belong to) Affinity marketing is focused on the desires of consumer that belong to reference groups. Marketers get the groups to approve the product and communicate that approval to its members. Credit cards etc!! Aspiration groups (want to belong to) Disassociate groups (do not want to belong to) Honda tries to disassociate from the biker groups. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group. Social class An open group of individuals who have similar social rank. US in not a classless society. US criteria; occupation, education, income, wealth, race, ethnic groups and possessions. Social class influences many aspects of our lives. IE upper middle class Americans prefers luxury cars Mercedes. Upper Americans- upper- upper class,. 3%, inherited wealth aristocratic names. Lower- upper -class, 1.2%, newer social elite, from current professionals and corporate elite. middle- uppers- class12.5% , college graduates, managers and professionals. Middle Americans middle class, 32%, average pay white collar workers and blue collar friends Working class, 38%, average pay blue collar workers Lower Americans lower class, 9 %, working, not on welfare

Lower-lower class, 7%, on welfare Social class determines to some extent the types, quality, and quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping; do not engage in much prepurhase information gathering. Stores project definite class images. Family reference group and social classes are all social influences on consumer behavior. All operate within a larger culture. Culture and sub-culture Culture refers to the set of values ideas and attitudes that are accepted by a homogenous group of people and transmitted to the text generation. Culture also determine what is acceptable with product advertising. Culture determine what people wear eat reside and travel. Cultural values in the US are good health education individualism and freedom. In American culture time scarcity is a growing problem. IE change in meals. Big impact on international marketing. Handoutwill British warm up to iced tea? No. But that is my opinion!!....Tea is part of the British culture, hot with milk. Different society, different levels of needs different cultural values. Culture can be divided into subcultures: Geographic regions Human characteristics such as age and ethnic back ground. IE West Coast teenage and Asian American. Culture effects what people. Buy how they buy and when they buy. Understanding consumer Buying Behavior offers consumers greater satisfaction (utility). We must assume that the company has adopted the marketing concept and are consumer oriented CONSUMER BEHAVIOR The field of consumer behavior is the study of individuals groups organizations and process they use to select secure use and dispose of

product services experience or ideas to satisfy needs and impacts that these process have on the consumer and society. This is border view of consumer behavior than the traditional one which focused much more on the buyers and immediate antecedents and consequences of the purchasing process. This view will lead us to examine indirect influences on consumption decisions as well as consequences that involve more than the purchaser and seller. Understanding and properly interpreting consumer wants is whole lot easier said than done. Generally market researcher talk to more than 4,000 consumers or find out What they drink of our products and those of our competitors What they drink of possible improvement in our products How they use our products What attitude they have about our product and our advertising What they feel about roles in the family and society. What their hopes and dreams are for themselves and their families. Today, as never before we cannot take our business for granted. Thats why understanding-and therefore learning to anticipate- consumer behavior is our key to planning and managing in this ever- changing environment.

APPLICATIONS OF CONSUME BEHAVIOR: Market strategy: All marketing strategies and tactics are based on explicit implicts beliefs about consumer behavior. Decisions based on explicit assumptions and

sound theory and reach are more likely to be successful than are decisions based solely on implicit intuition. Thus knowledge of consumer can be important competitive advantage. Social marketing: Social marketing is the application of marketing strategies and tactics to alter or create behavior that have a positive effect on the target individuals and / or society as a whole

MARKETING STRATEGY AND CONSUMER BEHAVIOR Marketing analysis Company Competitors Conditions Consumers Marketing segmentations Identify product-related need

Sets Group customers with similar need Sets Describe each group Select attractive segment (s) to target Marketing strategy Product, price, distribution, Promotion, services Consumer decisions process Problem recognition Information search Alternative evaluation Purchase Use Evaluation Out comes Individuals Firm Society CREATING SATISFIED CUSTOMER

Our total Product Consumer Decision Process Competitors Total product Customer Satisfaction superior value expected sales perceived value delivered

THE NATURE OF CONSUMER BEHAVIOR Want recognition Search of information on product that could satisfy the needs of the buyer; Alternative selection; Decision-making on buying the product; Post-purchase behavior.

Model of consumer behavior External Influences Culture Sub culture Demographic Social status Reference Groups Family Marketing

Experience and acquisitions Decision process situations Problem recognition Information search Self concept And need Alternative evaluation

Life style Desires

and selection Out let selection and purchases

Internal Influences Perception Learning Memory Motives Personality Emotions Attitudes

Post purchase Processes

Experience and acquisitions CONSUMER BUYING DECISSION PROCESS: According to Myers (1962), a persons decision making process depends to a significant degree on their cognitive style. Starting form the work of Carl Jung. Myers developed a set of four bi-polar dimensions the Myers Briggs Type Indicator: The terminal points on these dimensions are: thinking and feeling extraversion and introversion; judgments and perception; and sending and intuition. He claimed that a persons decision making style is based largely on how they score on these four dimensions. For example someone that scored near the thinking, extroversion, sensing, and judgments ends of the dimensions would tend to have a logical analytical, objective, critical, and empirical decision making style. Cognitive and personal biases in decision making It is generally agreed that biases can creep into our decision making processes, calling into question the correctness of a decision. Below is a list of some of the more common cognitive biases. Selecting search for evidence we tend to be willing to gather facts that support certain conclusions but disregard other facts that support different conclusions.

Premature termination of search for evidence we tend to accept the first alternative that looks like it might work. Conservatism and inertia unwillingness to change thought patterns that we have used in the past in the face of new circumstances. Experiential limitations unwillingness or inability to look beyond the scope of our past experiences; rejection of the unfamiliar. Selective perception we actively screen out information that we do not think is salient. Wishful thinking or optimism we tend to want to see things in a positive light and this can distort our perception and thinking. Recency we tend to place more attention on more recent information and either ignore or forget more distant information. Repetition bias A willingness to believe what we have been told most often and by the greatest number of different of sources Anchoring Decisions are unduly influenced by initial information that shapes our view of subsequent information.

Group think- peer pressure to conform to the opinions held by the group.

Source credibility bias we reject something if we have a bais against the person, organization, or group to which the person belong; we are inclined to accept a statement by someone we like.

Incremental decision making and escalating commitment we look at a decision as a small step in a process and this tends to perpetuate a series of similar decisions. This can be contrasted with zero based decision making.

Inconsistency the unwillingness to apply the same decision criteria in similar situations.

Attribution asymmetry we tend to attribute our success to our abilities and talents, but we attribute our failures to bad luck and external factors. We attribute others success to good luck, and their failures to their mistakes.

Role fulfillment we conform to the decision making expectations that others have of someone in our position. Understanding uncertainty and the illusion of control we tend to underestimate future uncertainty because we tend to believe we have more control over events than we really do. Faulty generalization in order to simplify an extremely complex world, we tend to group things and people. These simplifying generalization can bias decision making processes. Ascription of causality we tend to ascribe causation even when the evidence only suggests correlation. Just because birds fly to the equatorial regions when the trees lose their leaves does not mean the birds migrate because the trees lose their leaves. MARKETING RESEARCH Marketing research is the systematic design, collection, analysis of reporting of data and finding relevant to a specific marketing situation facing the company. Need of marketing research It is tool for decision making Its cause and effect of large scale enterprises Growth and complexity of markets. Research helps in changes in the pattern of consumption. Reaction in market need for a systematic study. Important of marketing research in determining in designing marketing operations.

Suppliers of marketing Small most companies can engages student of professor at a local college to design or they can they hire marketing research form. Most large companies on the other hand have their own marketing research department. Marketing research firms fall in to three groups. Syndicated service research firm Custom marketing research firm Specialty line marketing research firm There are many research techniques such as Questionnaire Area sampling MARKETING RESEARCH PROCESSES Defining the problem and research objectives Developing the research plan Collecting the information Analyzing the information Presenting the findings Marketing research provides the balance for the development of new product and service concepts to meet targeted consumer needs. It also enables the marketers to built consumer meaning in to the product of source by discovery which attributes are most important to the target market and integrating them in to the product a services design. SOURCE OF INFORMATION They are two types

Primary data Secondary data Primary data data are those, which are gathered specially for the project. At hand directly get, through questionnaires and interviews. Primary data source include company sales men, middlemen consumers and buyers trade associations executives and other businessmen and even competitors. Secondary data are generally publishe sources which have been collected originally for some other purpose. They are not gathered specifically to achieve the objectives of the particular project At records government publications reports and journals, trade professional and business associations publications and reports private business firms records media, university research organizations, and libraries. RESEARCH INSTUMENTS Marketing researches have a choice of main research instruments in collecting primary data Questionnaires Mechanical device A questionnaire consists of set of question presented to respondents for their answers Because of its flexibility the questionnaire is by far the most common instrument used to collect primary data. Questionnaire nee to be carefully developed tested and debugged before they are administrated on a large scale. One cans easily several errors in casually prepared questionnaire. Mechanical devices are used less frequently in marketing research. EG: galvanometer techistoscope, eye cameras, audiometer etc. SAMPLING PLAN

In research survey it is not possible to contact the entire population for the cost time and energy involved. Therefore research has to plan or establish a sample or the representive group from whom the information may be collected. A sample is a portion of the universe form which it is drawn. Samples are classified in two categories

Probability samples Probability samples

non- probability samples

It requires that individual items in the sample chosen by a process of random selection (which involves using fairly complex probability mechanism i.e. through a table of random numbers), where by each member selected for the sample. Greater statistical competence and more time are required to plan and use probability samplings. Non probability sampling It results from a process in which judgment enters in to selection of the numbers of a universe include in the sample. This type of sampling is used in market research because it cost less per observation take less time and requires relatively little statistical sophistication is planning the simple design and in selecting respondents. In collecting data for every important if probability decision one not likes to risk non-probability samples if probability samples are available. Sampling Probability Simple Area stratified random systematic random non-probability cluster sampling

Random sampling

Sampling

sampling

Convenience judgment quota Sampling sampling sampling Simple random sampling is also known as probability sampling. Under this every item of the universe has an equal chances of inclusion in the sample. It is so to say a lottery method in which individual units are tooled up from the while group not deliberately but by same group not deliberately but by same mechanical process. The results obtained from a random sample can be assured in terms of probability i.e. we can measure the errors or significance of results obtained from a random sample. Convenience sampling: Involves choosing the sample on the basis of convenience Judgment sampling It refers to selection of a sample, from the universe on the basis of expert judgment. Quota sampling: The sampling is not done at random, as the field surveyors are given wide selections respondents in meeting their quotas Preparing the report: The report must give/contain the following information: The little of research The name of the organization or client for whom it has been conducted. The methodology used Organization and the planning of the report

A table of contents along with charts or diagrams used in the report. Sample random sampling: It involves the selection of sampling units from a predetermined universe in such a way that every elementary unit that has a full and equal chance of being selected and included in the sample. STRATIFIED SAMPLING: Involves the selection the whole population is first divided in two or more parts (called strata) and then a sample (technically called a sub sample) is taken form each of the strata. The resulting stratified sample is a combination of two or more samples from different parts, or strata of the population. Cluster sampling: Involving the selection of sampling from a universe of group of clusters of items/observations Systematic sampling: It consists in choosing an item in the list at random then picking up every 5th or 10th item in the list. Sample description: The random sampling was adopted for the study since the number since the number of consumers was not known. It was decided to contract 300 respondents usually by administering the questionnaire to them. In the present study the simply size of the consumer were 300. The consumers were selected at random. Their segmentation is based on various factors such as age sex income occupations and level of education etc.

FINDINGS SUGGESTIONS PUBLICITY CONCLUSION QUASTIONNAIRE BIBLIOGRAPHY

FINDINGS The respondents who had been seen for survey, majority of people them were consumers and also they belonged to the age people of 25-35 and 35-45 years Most of the respondents were educated and belong to the occupation of agriculture and followed by housewives. Most of them income range between Rs. 10,000 Rs. 25,000 per year Sixty percent of respondents preferring the local made soft drinks Due to low price. But most of them are preferring especially vimals products due to this reason. Seventy two percent of respondents were aware of vimals products and they equally preferring the all types of vimals Products. Most of them preferring soft drinks as a quenches my thirst ability Most of them consumer soft drinks in monthly twice and. Weekly once, and this consumption due to low price. They are preferring highly pineapple and orange. Most of them felt that advertisement of vimals products average And they aware of this companys products through paintings on outlets and followed by advertisement on hoardings. Most of them are purchasing these products at pan shop outlets and they felt that quality and price factors for influencing the sales promotion effectively. They are not facing any different for buying the products. This companys marketing activity regarding area coverage is more due to concentration of local market area.

This company is effectively distributing the products to the customers through channels. The company sales are good when compared to other local manufacturer of soft drink products.

SUGGESTIONS Suggestions and recommendations that are focused toward improving the marketing activities of VIMAL BOTTLIN COMPANY. ADVERTISING

The company has to give good and effective advertisement through print media like pamphlets, broachers, and also electronic media like television and radio. Because customer see and watch these. So the company has to give much importance to this media for selling its product more. Adjectives such as new strong and improved used in advertising could help to increase the sales. DISCOUNTS Schemes like discounts free gifts buy one get one free should be introduced. The company has to give schemes and discounts to he dealer for motivating. And encouraging the dealer for selling its products more and more and keep its dealer. And the dealer about the particular brand have a good impression. And he keeps good relations. With the particular brand and the specify a newly opened shop holders to take dealers ship from the particular company has to give more and more schemes and discounts to dealers for selling product more and more and getting more satisfaction from the dealers and from them getting more new dealers. The company should introduce schemes for retailers to ensure counter pushing and make the customer aware of sachets.

PUBLICITY: The company has to give publicity through posters which are helpful to customers for getting more information about that particular product. EFFECTIVE SALES MANAGEMENT: The company has to provide good sales management to sell its products more and getting potential customers and dealers. And the sales management has to appoint. Good sales persons who are energetic and goal oriented. So He Company has to take much attention in the appointing of sales management for its development. It has to provide incentives and promotion for motivating in attaining the set goals

In order to boost up the sales in the age groups other than 30 45 years attractive promotional measures are to be adopted. Vimal cola brand should be advertised effectively Refrigerators are to supply to retail shops and also to pan shops which are selling high products for motivating the retailers and also small businesspersons. The company should offer different sizes of quality in order to meet the need of customers. The company has to concentrate on the niche markets to boost up the sales volume. The company has to improve the brand awareness among the consumer of the soft drinks in order to increases the number of loyal customers CONCLUSION With the globalization initiated in the 1990s and subsequent introduction of Pepsi and coke and domestic competition from the parley group and finally the growing awareness of the consumers regarding these products the local soft drinks companys are facing sever competition and getting meager sales volume. It is necessary for the VIMAL BOTTLING COMPANY to concrete in the NICHIE markets such as rural and agency areas. Already this company is very much famous in these NICHIE markets it has to reposition itself because of the growing competition from other branch. For this, it has to improve the advertisement and other promotional programmers. The government also has to give the encouragement and support to such companies in order to increase the domestic production and competitiveness.