1

DEEP RED

Analysis and Evaluation of the product availability and

Activation standard in retail Outlets of Indore

By

Nidhi Tiwari

K J Somaiya Institute of Management Studies & Research

June, 2010

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DEEP RED

Analysis and Evaluation of the product availability and

Activation standard in retail Outlets of Indore

By

Nidhi Tiwari

Under the guidance of

Shri Tarun Purohit

Marketing Manager

Hindustan Coca cola Beverage Pvt. Ltd.

K J Somaiya Institute of Management Studies & Research

June, 2010

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CERTIFICATE

This is to certify that Ms. Nidhi tiwari, a student of the Post-Graduate

Diploma in Retail Management, has worked under my guidance and

supervision. This Summer Project Report has the requisite standard and to the

best of my knowledge no part of it has been reproduced from any other summer

project, monograph, report or book.

Organisational Guide

Mr. Tarun Purohit

Marketing Manager

Hindustan Coca Cola Beverages Pvt. Ltd.

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DEEP RED

Analysis and Evaluation of the product availability and activation standard in retail

Outlets of Indore

Low per capita income, lesser awareness about branded products, predominant rural population,

widespread illiteracy and ignorant attitude towards money product preference are some of the most

pronounced characteristics of Indian middle class consumers. This kind of demographic distribution makes it

hard for companies to sell a product which neither falls under the category of need nor under necessity.

India is a country of over a billion people, with a very low per capita consumption of soft drinks. An

independent study shows that out of 120 billion litres of non alcoholic beverage consumed in India, only 4%

falls under the ready-to-drink category. Here in lies the next big opportunity. With increased urbanisation,

growth of the middle class and both spouses coming under employed category, increasing number of people

are getting introduced to ready-to-drink packaged drinks, which opens up a vast potential for new and

untapped consumer section.

HCCBPL (Hindustan Coca Cola Beverage Pvt. Ltd.), a subsidiary of The Coca Cola

India, deals in a category which is not only price driven but also doesn’t fall in the previously mentioned

need or necessity category. To sell such a product, certain procedures are adopted by the company which

not only increases its visibility but also encourages the customer to go ahead and buy the product. Building

quality products and long lasting relationships with customer is at the heart of the whole strategy. It’s by

striving to achieve closer relationships with customers that sustainable relationships can be established. To

pursue this task in market place execution, they have implemented a program called ‘Deep RED’, a subset of

RED(Right Execution Daily), for their key account customers; like modern trade retail outlets, restaurants,

eating and drinking joints, etc . This program maintains a comprehensive tab on each outlet that how

efficiently they implement and maintain merchandising standards. It eventually helps them to identify key

areas where improvements can be made.

HCCBPL has been working on RED since February, 2006. The company believes that its

success depends on their ability to connect to customers and step up to meet their demands. Company’s

success further depends on the ability of their own people to execute effectively every day. A.C. Nielson

conducts a survey each month to measure the impact of Deep RED. It conducts the survey by visiting all

Deep RED activated outlets and benchmarks them on the prescribed merchandising standards of Deep RED.

Then an amortized report about the same is sent to HCCBPL. Deep Red is basically for:-

For vertical growth of company’s business through its existing outlets by getting improved volumes.

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For better fill rates of its SKUs that converts into good availability in the market

For better control over market

It decides and indicates the health of company’s business in market

It encourages as well demands better execution in the market

It helps in increase in market share as well increase space occupancy in modern trade outlets which is

precious

This research was focused on increasing the Deep RED score, carrying out the activation in all modern trade

outlets, recommending the organization for further increasing the product take off and improvements and

analyzing the causes behind the low Deep RED scores in HCCBPL, Indore.

Major Findings from the research are listed below:-

1. Most of the outlets did not have stock of all the coca cola variants that included both carbonated sweetened

drinks and juice which apparently resulted in low scores of Deep red.

2. Some stores like Vishal mart, Aditya Birla retail ltd More, Reliance fresh (Navlakha) , did not have visi-cooler

in prime locations and some did not even have a cooler or open chillers.

3. In some stores some variants were available in excess while some were completely missing, which was

possibly because of automated replenishment system.

4. In some stores like Big bazaar and Food bazaar offers were not advertised properly and sometimes their

systems were not updated with the latest offers.

5. Chilled availability is the basic criteria for selection of a soft drink, specially packs which are meant for

immediate consumptions.

6. Movement of product is more from visi-cooler as compared to shelves

7. Impulse racks near the cash tills generated more product take offs

8. Some of the Stocks supplied in certain stores were damaged. Some stores even had expired stocks on

display.

9. Women are the main decision makers while purchasing from a retail outlet and they preferred products

which gave them better value propositions

10. The products that did not have any kind of promotional package with them had a very static and consistent

movement pattern and their share of visible index(SOVI) was less as well.

11. The categories like fruits and vegetables ,personal care , staples and processed food are the maximum

conversion categories in retail outlets

Some suggestions that will help rectify above problems:-

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Make the stock available of all variants in all the stores because company is losing 60% of Deep RED score in

Availability only.

Keeping the visicooler always filled with coke products so that chilled availability can be maintained

specially of immediate consumption packs and this can be done with the help of sales staff of beverage

category and making them aware of variants of coca cola

A dedicated and responsible personal who will monitor stores like ABRL More, Reliance Shekhar planet and

Vishal mart, from where we get maximum sales , so that in case any of these outlets are out of stock, it can

be reported and replenished with immediate effect.

Arranging all the stock according to brand preference or in order of COLOJ -K

Keeping non promoted SKU’s along with promoted SKU’s which will also boost the sales of non promoted

SKU’s

Try to maintain the FEFO(first expiry first out) of all the products and near to expiry stock can be pushed into

the market with discounts and as freebies

Proper and visible communication of the all promotion being run on the various SKU’s

Reliance Stores: Try occupying maximum space of floor stack units , impulse racks near xit and entrance , as

it increases the visibility of products with attractive displays.

More attractive point of sale (POS) displays with the help of standees, track style boards, neck ringers, floor

stock units specially in Reliance stores and Future group because permission is not a big issue in these

stores.

Customer Based Promotion: as stated above, women are, for a large part, the deliberators when it comes to

retail shopping. So they can be encouraged to buy the product by giving them interesting promotional

packages in return. It will also support the ethics of connecting closely with the customers. They can be

offered a promotional voucher which will entitle them to attend one of the women gatherings related to

cooking classes, handicraft designing classes, musical get together, fine arts classes, et al, whichever is

closest to their likings. These classes can in turn be arranged in association with any of the locally active

relevant bodies. They are generally enthusiastic about such initiatives and coke can sponsor such events as

well for nominal costs and hugely promising returns.

It will provide coke with a unique opportunity to update its customers with its latest products, offers and

other USPs, more personally and more effectively.

Relevant fliers and posters can be distributed on-site to ensure the message remains with the customer

for long, eg in a cooking class it can distribute few recipes with any one of the coke products in background.

It will help Coke form an increasingly loyal customer section from the household.

Sponsoring any kids event running in ABRL, Bib Bazaar which can have an entry through coke EAN codes or

caps of the bottle and coca cola goodies can be given away as prizes.

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Repetitive announcements of offers in store through their in store radios.

A video advertisement of coca cola products in Big bazaar’s own Future Group Channel. E.g Chings Noodles

have been doing this.

Proper arrangement of all the coke products together in order of increasing or decreasing pack size on

shelves this gives them more visibility .

Extra availability of fast moving and preferred brands and during any promotion.

Bundling of products can be done and MRP discount on total can be given rather than individual MRP

discount on MRP .

Tertiary displays in categories like snacks, processed food, fruits (for juices) can be done to increase the

incidences of the product.

Rather than giving price discounts quantity can be increased.

A flex board featuring Coke Zone can be used and put above the shelves of coca cola product in ABRL ,which

is visible from all the extreme corners for increasing the visibility.

As Coca Cola is an official sponsor of FIFA world cup 2010, this association can be used as a coke promotion

in stores having sports and kids zone.

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AKNOWLEDGEMENT

I wish to express my gratitude to Hindustan Coca-Cola Beverages Private Limited, management for

giving me an opportunity to be a part of their esteem organization and enhance my knowledge by

granting permission to do my summer training project under their guidance.

I am grateful to Mr. Tarun Purohit (Marketing Manager), Mr. Pankaj Parsai (Area

Sales Manager), Pradumnya Sharma (Sales Executive) my guides, for their invaluable guidance and

cooperation during the course of the project. They provided me with their assistance and support

whenever needed that has been instrumental in completion of this project.

The learning during the project was immense & invaluable. My work basically

included the study of various ways for developing marketing strategies for the company. The present

report is an amalgamation of my thoughts and my efforts to study the various ways of developing

the marketing strategies for the company. Further a detailed study has been done in order to

suggest the company the feasible strategies that would enhance its market share.

Nidhi Tiwari

(Management Trainee)

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Table Of Contents

The Coca cola Company...................................................................................................10

The Beverage Market India..............................................................................................11

The Coca Cola Company India..........................................................................................12

Hindustan Coca Cola Beverages Pvt. Ltd..........................................................................13

Coca Cola India Products.................................................................................................14

Business Plan Model.......................................................................................................16

Mission ,Vision and Values..............................................................................................17

Competitors of The Coca Cola India................................................................................19

Organistaional Structure of HCCBPL...............................................................................20

Customers of HCCBPL....................................................................................................23

Deep Red: Analysis and Evaluation

of activation standards in outlets of Indore...................................................................25

Objectives and Scope of Study......................................................................................28

Reliance Fresh Store Layout..........................................................................................29

ABRL More Store layout................................................................................................30

Hot Spots in Retail Outlets.............................................................................................31

Major Findings os Study................................................................................................32

Conclusion....................................................................................................................34

Recommendations........................................................................................................35

References....................................................................................................................37

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Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia , on May

8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic

beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage

concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain

wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as

concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and

markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the

1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system

has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small

amount of money- a billion times a day.”

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and

pervasive production and distribution system in the world. More than anything, that system is dedicated to

people working long and hard to sell the products manufactured by the Company. This unique worldwide

system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing,

from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to

thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of

pleasure for hundreds of millions of people every day. The Company aims at increasing shareowner value

over time. It accomplishes this by working with its business partners to deliver satisfaction and value to

consumers through a worldwide system of superior brands and services, thus increasing brand equity on a

global basis. They aim at managing business well with people who are strongly committed to the Company

values and culture and providing an appropriately controlled environment, to meet business goals and

objectives. The associates of this Company jointly take responsibility to ensure compliance with the

framework of policies and protect the Company’s assets and resources while limiting business risks. The

business system of coca-cola in India directly employs approximately 6,000 people, & indirectly creates

employment for many more related industries throw our wash procurement, supply and distribution

system. The vast Indian operations comprise 25 companies owned bottling operations & 24 franchises –

owned bottling operations. Apart from this networks of contract packers also manufacture a range of the

product for the company. On the distribution front, 10 tonne trucks, open-bay three wheelers that can

navigate the narrow alleyways of Indian cities, ensure that our product available in each corner of the

country. The coca cola company is responsible for the mfg. distribution & sales of product across the

country.

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Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and restaurants in more than 200

countries. lt is produced by the Coca-cola Company which is also often referred to as simply Coca cola or

coke. Coke is one of the world's most recognizable and widely sold commercial brands; its major rival is

Pepsi. Originally intended as a patent medicine when it was invented in the 19th century, Coca-cola was

bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the

world soft drink market throughout the 20th century. The Coca Cola Company owns and markets other soft

drinks that do not carry the Coca -cola branding, such as Sprite, Fanta, and others. Coca cola was invented.

In Atlanta, Georgia, by John S. Pemberton, originally as a coca wine caned Pemberton's French, Wine coca in

1885.

The Indian Beverage Market

India’s one billion people, growing middle class, and low per capita consumption of soft drinks made it a

highly contested prize in the global CSD market in the early twenty-first century. Ten percent of the

country’s population lived in urban areas or large cities and drank ten bottles of soda per year while the vast

remainder lived in rural areas, villages, and small towns where annual per capita consumption was less than

four bottles. Coke and Pepsi dominated the market and together had a consolidated market share above

95%. While soft drinks were once considered products only for the affluent, by 2003 91% of sales were

made to the lower, middle and upper middle classes. Soft drink sales in India grew 76% between 1998 and

2002, from 5,670 million bottles to over 10,000 million and were expected to grow at least 10% per year

through 2012.28 In spite of this growth, annual per capita consumption was only 6 bottles versus 17 in

Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United States29. With its large population and

low consumption, the rural market represented a significant opportunity for penetration and a critical

battleground for market dominance. In 2001, Coca-Cola recognized that to compete with traditional

refreshments including lemon water, green coconut water, fruit juices, tea, and lassi, competitive pricing

was essential. In response, Coke launched a smaller bottle priced at almost 50% of the traditional package.

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THE COCA COLA INDIA COMPANY

The Coca-Cola Company came to India on October 23, 1993, after an absence of 16 years. When the

Company (hereon referred to as CCI – Coca Cola, India) re-entered the Indian market, there was competition

from Pepsi, which had a head start as it had established itself since 1989, and Thumps Up (the flag ship CSD

– Carbonated Soft Drink of Parle Foods). As an entry strategy, CCI took over Parle Foods. With a fine and

detailed distribution network in place, Coke was now ready to take on archrival – Pepsi. Over a period of

time, CCI also bought certain bottling units that earlier belonged to Parle or individual distributors. In 1993,

Thumps Up, Gold Spot and Limca enjoyed around 75% share of the CSD market. With the entry of Coke, CCI

decided not to promote the cola brand they took over i.e., they decided to withdraw Thumps Up from the

market. This however, did not pay off since the cola market was (and still is) highly polarized and people

were unwilling to compromise on the taste of their preferred cola. As a result, Coke’s market share (Coke +

Thumps Up) fell to nearly 55%. After 3 years of incurring losses, CCI finally took a decision to re-launch

Thumps Up. This strategy paid off and today almost 59% of the market is governed by CCI. In order to reach

India’s 300 million soft drink consumers, the company distributes its range of products in over 700,000 retail

outlets, serviced via trucks, converted three-wheelers, tricycles and pushcarts. Atul Singh is the President &

CEO of Coca-Cola India . After a 16-year absence, Coca-Cola returned to India in 1993, cementing its

presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling

network. Coke’s acquisition of local popular Indian brands including Thums Up (the most trusted brand in

India21), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and

distribution assets but also strong consumer preference. This combination of local and global brands

enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes while also tapping

into traditional domestic markets. Leading Indian brands joined the Company's international family of

brands, including Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the

company launched the Kinley water brand and in 2001, Shock energy drink and the powdered concentrate

Sunfill hit the market. From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one

of the country’s top international investors.22 By 2003, Coca-Cola India had won the prestigious Woodruf

Cup from among 22 divisions of the Company based on three broad parameters of volume, profitability, and

quality. Coca-Cola India achieved 39% volume growth in 2002 while the industry grew 23% nationally and

the Company reached breakeven profitability in the region for the first time.23 Encouraged by its 2002

performance. Coca-Cola India announced plans to double its capacity at an investment of $125 million (Rs.

750 crore) between September 2002 and March 2003. Coca-Cola India produced its beverages with 7,000

local employees at its twenty-seven wholly-owned bottling operations supplemented by seventeen

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franchisee-owned bottling operations and a network of twenty-nine contract-packers to manufacture a

range of products for the company. The complete manufacturing process had a documented quality control

and assurance program including over 400 tests performed throughout the process.The complexity of the

consumer soft drink market demanded a distribution process to support 700,000 retail outlets serviced by a

fleet that includes 10-ton trucks, open-bay three wheelers, and trademarked tricycles and pushcarts that

were used to navigate the narrow alleyways of the cities.

HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED , INDORE

HCCBPL started its company owned business operations (COBO) in Madhya Pradesh in 2000 before that it

was operating through a franchise owned business operation (FOBO). Today coca cola is the market leader

in beverage category and have a total of 85 % market share with a double digit growth every year.

Hindustan Coca Cola Beverage Pvt. Ltd. has its own bottling plant in Bhopal and a direct sales depot in

Indore through which it carries its operations in Madhya Pradesh . This has eliminated the need of a middle

man or a separate distribution channel. And a closer watch on the market and penetration of products has

been possible due to companies own operations.

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PRODUCTS

The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices

and bottled mineral water. The Company is always looking to innovate and come up with, either complete

new products or new ways to bottle or pack the existing drinks. The Coca-Cola Company has a wide range of

products out of which the following products are marketed by HCCBPL:

In the Cola Section:

In the Lemon section:

In the Orange section:

In the Juice section:

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In the Soda Water and Bottled Mineral Water section:

PACKAGING DETAILS

Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300 ml returnable glass bottles; 600

ml , 1.5 litre and 2 litre PET bottles

Diet Coke: 330 ml can and 500 ml PET bottle

Maaza: 200 ml and 250 ml Returnable Glass Bottle; 600 ml and 1.2 litre PET bottles and the newly

introduced 200 ml Tetra Pack

Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles

Kinley Soda Water: 300 ml returnable glass bottles, 600 ml free and 1 litre PET bottles.

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BUSINESS PLAN MODEL

DISTRIBUTION NETWORK

HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of

distribution of products to diverse parts of the cities. The distribution channels are constructed in such a

way that the demand of customers is fulfilled at the right place and the right time when it is needed by

them.

A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail Stock ---

RetailShelf---Consumer

The customers of the Company are divided into different categories and different routes, and every

salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and

well organized distribution system contributes to the efficiency of the salesmen. It also leads to low costs,

higher sales and higher efficiency thereby leading to higher profits to the firm.

Coca-Cola India

division, Gurgaon

Regional Bottlers

COBO/FOBO

Customers

Manufactures

Concentrate, Beverage

base and Syrup

Manufactures finished

Bottles/Cans/Fountain

Syrup

Consumers

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MISSION, VISION AND VALUE

Coca Cola’s mission, vision and values outline who they are, what they seek to achieve, and how they want

to achieve it. They provide a clear direction for Company and help ensure that they are all working toward

the same goals.

MISSION

Coca Cola mission declares their purpose as a company. It serves as the standard against which they weigh

their actions and decisions. It is the foundation of their Manifesto.

To refresh the world in body, mind and spirit.

To inspire moments of optimism through our brands and our actions.

To create value and make a difference everywhere we engage.

VISION

Coca Cola vision guides every aspect of business by describing what they need to accomplish in order to

continue achieving sustainable growth.

People: Being a great place to work where people are inspired to be the best they can be.

Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's

desires and needs.

Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring

value.

Planet: Being a responsible citizen that makes a difference by helping build and support sustainable

communities.

Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.

Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by;

the values being:

1. Leadership: The courage to shape a better future

2. Passion: Committed in heart and mind

3. Integrity: Be real

4. Accountability: If it is to be, it’s up to me

5. Collaboration: Leverage collective genius

6. Innovation: Seek, Imagine, Create, Delight

7. Quality: What we do, we do well

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FIGURE 2: VISION FOR SUSTAINABLE GROWTH

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COMPETITORS TO COCA COLA

PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends for the

World's # 2, carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice.

Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink,

and Aquafina water.

Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products,

Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by

Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of

the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks.

The flavored milk products also have become substitutes to the products of the company due to growing

health awareness among people.

Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever since times and

people have laid all their trust in the Company and the products of the Company. Apart from food products,

Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give a

strong competition to Maaza and the latest product Minute Maid Pulpy Orange.

Parle Agro: Parle Agro is one of the most trusted names in the Indian beverage, packaged drinking water,

and confectionery industry. It has leading brands like Frooti, Appy, Appy Fizz, LMN and Bailley.

Godrej Juices: With the leading brands like jumpin and XS juices godrej can give a stiff competition to Coca

cola in future. It is also launching another drink in the juice segment.

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Organizational Structure

Hindustan Coca Cola Beverages Pvt. Ltd.

A.G.M

Manager (Prodn & Maint.)

Production Executive

Manufacturing

Maintainance Executive

Lab Incharge Chemist

Manager (HR) Executivce / Staff Office Staff

Sales Manager Executive / Staff Worker

Finance Manager Executive Office Staff

Marketing Op. Executive

Executive Office Staff

Manager Q.A. Chemist ETP Operator Worker

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ORGANIGATION STRUCTURE

ORGANIZATION STRUCTURE IN COCA-COLA, INIDA

Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central)

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ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN

HCCBPL:

ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

AGM/AOD

Plant

Manager

Route to

Market

Human

Resource

Manager

Finance

Manager

General

Sales

Manager

Area Sales

Manager

Sales

Executive

Market

Developer

Distributors

And

Salesmen

Channel

Manager

Marketing

Key

Accounts

Area

Capability

Manager

Sales

Trainers

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CUSTOMERS OF HCCBPL

a) Future Consumption Route: This route consists of outlets of Coca-Cola products, wherein a considerable

amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or

two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability

of the product

Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the

Company. It basically consists of organizations that buy large quantities of a product in one single

transaction. The Company provides goods to these customers on credit, payments being made by them

after a certain period of time i.e. either a month of half a month.

Examples: Modern trade retail outlets, Clubs, fine dine restaurants, hotels, Corporate houses , modern trade

retail outlets etc.

b) Immediate Consumption Route : The outlets in this route are those which require stocks on a daily basis.

The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day

and might run a little into the next day i.e. the products are consumed at a fast pace.

Fragmented Trade: The customers in this category are grocery stores, restaurants, streets, vendors, mass

merchandisers, conveniences stores, small eating and drinking outlets, dhabas, street side vendors among

others. These retailers are directly connected to the end user of coke. The outlets can be classified as per

three criteria :

Segment

E & D : Those outlets where people visit to ear of drink are known and eating and drinking outlets. Such as

Restaurants and Hotels, D habas.

Customers Of HCCBPL

Fragmented Trade

Grocery Stores

Eating and drinking outlets

Convenience outlets

Key Accounts

Modern Trade

outelts

Hyper market

Super market

Covenio

Restaurants

Cinemas

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Convenience: Convenience outlets ate those outlets where people visit regularly for various purposes like

stationary shop, S.T.D – Booth, Betal Shop and general Store.

Grocery : Those outlets where people visit to purchase food grains and any of such things for future

consumption and called as Grocery shops.

Based on Volume Pattern

According to the volume sale in the outlets the company has adopted a unique policy of categorizing the

outlets in four different segments such as:

Diamond : Those outlets, which give an annual sale of Coca - Cola products more than 800 carats.

Gold: Those outlets, which give an annual sale of Coca - Cola products less than 200 carats

Silver: Those outlets, which give an annual sale of Coca - Cola products between 200 to 499 carats.

Bronze: Those outlets, which give an annual sale of Coca':-Cola products less than 200 carats

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DEEP RED : Analysis and Evaluation in Retail Outlets

Hindustan Coca Cola Beverages Pvt.Ltd. India division Under Eurasia Operating Group

has been working on RED i.e. Right Execution Daily Since FEB 2006. Coca cola company believes that its

success depends on their ability to connect with consumer by providing them with a wide variety of choices

to meet their desire, needs and lifestyles choices, company success further depends on the ability of their

people to execute effectively every day.

Deep Red is one such effort which they use for analysing their success in their

key accounts business. It emphasises on improving the merchandising standards and providing a better

visibility in every outlet to each of their product so that it is more approachable to customer. It analyses

each and every outlet on three broad fronts i.e equipment, availability and activation. Each of them carries a

certain set of standards and carries different share in total scoring.

HCCBPL has been working on RED since February, 2006. The company believes

that its success depends on their ability to connect to customers and step up to meet their demands.

Company’s success further depends on the ability of their own people to execute effectively every

day. A.C. Nielson conducts a survey each month to measure the impact of Deep RED. It conducts the

survey by visiting all Deep RED activated outlets and benchmarks them on the prescribed

merchandising standards of Deep RED. Then an amortized report about the same is sent to HCCBPL.

Deep Red is used for following purposes:-

For vertical growth of company’s business through its existing outlets by getting improved volumes.

For better fill rates of its SKUs that converts into good availability in the market

For better control over market

It decides and indicates the health of company’s business in market

It encourages as well demands better execution in the market

It helps in increase in market share as well increase space occupancy in modern trade outlets which is

precious

Deep RED broadly divides HCCBPL key account customers in following categories:-

1. Modern Trade Retail Outlets: Modern trade outlet channel is a distribution channel function where the

retailing organization will buy products from certain manufacturers and then sell it directly to

consumers. A retailer is a reseller from which a consumer purchases products. They contribute to the

bulk sales of HCCBPL. They can be further categories in

26

a) Hypermarket : a superstore which combines a supermarket and a department store. The result is a very

large retail facility which carries an enormous range of products under one roof, including full lines of

groceries and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine

weekly shopping needs in one trip. The stores which have more than 8 cash tills are categorised as Hyper

market. E.g. More, Hypercity

b) Super market : A supermarket, a form of grocery store, is a self-service store offering a wide variety of food

and household merchandise, organized into departments. It is larger in size and has a wider selection than a

traditional grocery store and it is smaller than a hypermarket or superstore. The supermarket typically

comprises meat, fresh produce, dairy, and baked goods departments along with shelf space reserved for

canned and packaged goods as well as for various nonfood items such as household cleaners, pharmacy

products, and pet supplies . Any store having 3 to 5 cash tills comes under category of supermarket. E.g Big

Bazaar, Food Bazaar

c) Convenience Store : It is small store or shop that sells items such as fruits , vegetables, staples, home need

stuff candy, ice-cream, soft drinks, lottery tickets, cigarettes and other tobacco products, newspapers and

magazines, along with a selection of processed food and perhaps some groceries. Any store having less than

3 cash till falls under this category E.g. Reliance Fresh, Spencer, Spinach

2. Cinema : They work not only as entertainment joint but as a customer for coca cola products as people can

use such joints for the purchase of coke during any movie.

3. Eating and drinking outlets: Those outlets where people visit to ear of drink are known and eating and

drinking outlets. Such as McDonalds, Smokin Jones, Raddison Hotel etc.

The Deep RED scoring take into consideration the following parameters while deciding the activation and

availability standards in any outlets:-

Equipment:- a)Whether the Visicooler is in prime position or not .?

b)Is the visicooler pure (does not contain any other item than coke?

c) Does it have all the coke variants available ?

d)Does KO juices products have adequate share in Beverage section?

e)Does sparkling sweetened drinks have adequate share in beverage section and chilled space?

Availability :-

a) Whether all the coke variants are available in all the sizes and packs in adequate quantity pr not

b) Whether they have vertical display or not

c) Proper and adequate facing of all coca cola products has been done or no

Activation:-

27

a) Whether there is any visible promotion of offers or not?

b) Whether coke products are their in secondary warm display or not?

c) If Multi pack pick and mix are their then are they displayed or not?

28

Fully activated Deep Red Outlet Food Bazaar ABRL More.

Food Bazaar

RELIANCE STORE BIG BAZAAR BIG BAZAAR

Pure Visicooler

29

OBJECTIVES OF THE STUDY

a) To know the reason behind low Deep RED (Right Execution Daily) score.

b) To know the availability of activation element in Deep RED outlet.

c) To identify suitable activation element according to the outlet's location.

d) To know the impact of activation element on sell when keep it outside.

e) To know the impact of activation element on customer.

f) To do the cross category analysis for tertiary display in ABRL.

g) To know the visicooler versus shelf movement of coca cola products

h) To know and analyse the movement of Diet coke from visicooler and bin chillers

i) To know the movement and share of visible index of non promoted SKU’s

j) To find out non price communication methods to boost sales

k) To know the various retail outlets floor plan and analyse hot spots where tertiary displays can be put

SCOPE OF STUDY

1. The main scope of study is to understand the impact of S.G.A (Sells Generating Assets) on sell.

2. To increase Deep RED score of the outlet.

3. To fill the gap of activation element in different Deep RED outlet.

4. To make a platform for market developer to work on difficult Deep RED outlet.'

5. To analyze the various aspects of marketing and sales.

6. To analyse the critical areas where improvement is needed

30

RELIANCE FRESH STORE LAYOUT : Appendix 1

IMPULSE RACKS IMPULSE RACKS

Entry

Categories- 1 : fruits and vegetables

2 : bakery items

3: processed food

4 : processed food

5: non food items

6: non food items

7: beverages

8: home needs

9: daily needs

10 : daily needs

CSD

Fru

its

and

veg

etab

les

O

pen

ch

iller

s

End caps

1 2

End caps

End caps

3 4

End caps

End caps

5 6

End caps

End caps

7 8

End caps

End caps

9 10

End caps

Cash

till

Cash

till

Cash till Cash till

Station

ery G

eneral m

erchan

dise

Home needs

office

IM

P

UL

SE

Staples

FSU

31

Appendix2: ABRL STORE LAYOUT

DIY

an

d a

uto

par

t

acce

sso

ries

sh

elve

s w

ith

end

cap

s

Foo

twe

ar a

nd

acce

sso

ries

Wo

men

an

d m

en

app

arel

sec

tio

n

Per

son

al c

are

sect

ion

Exit

Ho

me

nee

ds

sect

ion

Shel

ves

wit

h e

nd

cap

s

Ute

nsi

ls a

nd

dai

ly n

eed

item

s s

hel

ves

wit

h e

nd

cap

s

Leis

ure

item

s se

ctio

n

shel

ves

wit

h e

nd

cap

s

ELECTRONICS

Information technology

Small and large white

applainces

Dairy p

rod

ucts

Op

en ch

iller O

pen

chiller

Beverages sectio

n w

ith e

nd

caps o

n b

oth

sides

Pro

cessed fo

od

sectio

n w

ith

end

caps o

n b

oth

sides

Daily n

eeds sectio

n w

ith e

nd

caps o

n b

oth

sides

Co

nsu

mer

du

rables

Fruits an

d vegetab

les

and

staples sectio

n

IT and

CD

IT

entrance

CASH TILLS WITH IMPULSE RACKS

FSU FSU

FSU

FSU

32

HOT SPOTS IN A RETAIL OUTLET

Endcap : It is a display for a product placed at the end of an aisle. It is perceived to give a brand a

competitive advantage. It is often available for lease to a manufacturer in a retail environment.

Impulse Grid unit/Racks: It displays a product near the cash till. They are considered to be the

impulse driver of a customer and are strategically placed near the cash till. In the above two

appendix front portion of cash till is reserved for Impulse rack and they can be used a secondary

display for a product to increase its sales.

Cash Tills: These are the stay section of customer where most of the decisions are taken. Any

POS display here can result in high conversion rates for a product

Floor Stack Units: These units are used as a tertiary display unit, they enhance the visibility of

the product and makes it more approachable to customer. This can be used as a sales booster .

Attractive display on floor stack unit can result in better visibility.

Entrance gate or check in counter: Any customer who enters any retail outlet goes to the most

visible portion of the outlet from that entrance so any product which is near to entrance gate gets

an automatic visibility and which in results increases sales. Floor stack displays, standees, flange

on entrance gate can help in promotion of a product.

Cross Category: Any category which complements the category in which a product falls or can

be used along with the product is a cross category. For eg snacks and cold drink, milk and bread,

apparel and accessories

In above two appendices coca cola can use the floor stack units which are in the alley and the

entrance gate of ABRL can be used for a standee or poster for communication of the offer and

increasing the incidences of the product, cash till with impulse racks in Reliance, can be used as a

secondary warm display.

33

MAJOR FINDINGS

Major Findings from the research are listed below:- 1. Most of the outlets did not have stock of all the coca cola variants that included both carbonated

sweetened drinks and juice which apparently resulted in low scores of Deep red.

2. Some stores like Vishal mart, Aditya Birla retail ltd More, Reliance fresh (Navlakha) , did not have visi-

cooler in prime locations and some did not even have a cooler or open chillers.

3. In some stores some variants were available in excess while some were completely missing, which was

possibly because of automated replenishment system.

4. In some stores like Big bazaar and Food bazaar offers were not advertised properly and sometimes their

systems were not updated with the latest offers.

5. Chilled availability is the basic criteria for selection of a soft drink, specially packs which are meant for

immediate consumptions.

6. Movement of product is more from visi-cooler as compared to shelves ,Impulse racks near the cash tills

generated more product take offs

Chilled versus warm movement

23.41%

31.69%

44.90%

Sales

Shelves

Secondry warm display

Visicooler

7. Some of the Stocks supplied in certain stores were damaged. Some stores even had expired stocks on

display.

8. Women are the main decision makers while purchasing from a retail outlet and they preferred products

which gave them better value propositions

34

9. The products that did not have any kind of promotional package with them had a very static and

consistent movement pattern and their share of visible index(SOVI) was less as well.

Share Of Visible Index

Promoted

Non Promoted

10. The categories like fruits and vegetables ,personal care , staples and processed food are the maximum

conversion categories in retail outlets

Conversion per category ABRL

32.69%

23.59%

12.67%

13.91%

15.14%

FMCG

FRESH

Gen merch

IT

apparel

FMCG is the highest conversion category in ABRL having 32.69% share in total

FMCG contribution in ABRL

26.30%

29.20%

32.08%

12.35%

Sales

BEVERAGES

Processes food

Personal care

home care

Out 32.69% share in total Beverage contributes 26.30% and processed food being the second

highest sale generator contributing 29.20%

35

Fresh category contribution in ABRL

0.67%

16.10%4.66%

71.80%

6.69%

Sales

Prepared food

F&V

Bakery

Staples

Fresh and dairy

Above figure shows the distribution of various sections in Fresh Category. It shows that staples

contribute the most to this section.

CONCLUSION

On the basis of above findings it can be concluded that the company is basically losing its major score

due to stock unavailability and improper communication and low visibility of its product. Customers

prefer such products which are not only visible but also readily available for consumption and any

product which carries a promotion on it becomes preferable not only by the end user but also the

retailer. And women are major decision maker in retail purchase , so Coca Cola India need to reach this

sole decision maker , to trigger the consumption in traditional Indian Families .

Activation in all Deep Red activated outlets can only be possible when available with

proper amount of stock and equipment. A regular check on all the activated outlets along with the

analysis of movement of stock can result in better performance thereby increasing the Deep Red score

and improved sales of various SKU’s. Analysis of shopping preference and habits of the customers can

give a broad understanding of their consumption pattern and accordingly strategies can be developed

with proper mix of sales staff, SKU’s, promotions , communication and activation. Focusing on these

factors set of solution can be crafted such as repositioning of products on display or remodelling the

entire store will result in better business and increased sales.

36

RECOMMENDATIONS

Some suggestions that will help rectify above problems:- Make the stock available of all variants in all the stores because company is losing 60% of Deep RED

score in Availability only.

Keeping the visicooler always filled with coke products so that chilled availability can be maintained

specially of immediate consumption packs and this can be done with the help of sales staff of beverage

category and making them aware of variants of coca cola

A dedicated and responsible personal who will monitor stores like ABRL More, Reliance Shekhar planet

and Vishal mart, from where we get maximum sales , so that in case any of these outlets are out of

stock, it can be reported and replenished with immediate effect.

Arranging all the stock according to brand preference or in order of COLOJ -K

Keeping non promoted SKU’s along with promoted SKU’s which will also boost the sales of non

promoted SKU’s

Try to maintain the FEFO(first expiry first out) of all the products and near to expiry stock can be

pushed into the market with discounts and as freebies

Proper and visible communication of the all promotion being run on the various SKU’s

Reliance Stores: Try occupying maximum space of floor stack units , impulse racks near xit and

entrance , as it increases the visibility of products with attractive displays.

More attractive point of sale (POS) displays with the help of standees, track style boards, neck ringers,

floor stock units specially in Reliance stores and Future group because permission is not a big issue in

these stores.

Customer Based Promotion: as stated above, women are, for a large part, the deliberators when it

comes to retail shopping. So they can be encouraged to buy the product by giving them interesting

promotional packages in return. It will also support the ethics of connecting closely with the

customers. They can be offered a promotional voucher which will entitle them to attend one of the

women gatherings related to cooking classes, handicraft designing classes, musical get together, fine

arts classes, et al, whichever is closest to their likings. These classes can in turn be arranged in

association with any of the locally active relevant bodies. They are generally enthusiastic about such

initiatives and coke can sponsor such events as well for nominal costs and hugely promising returns.

It will provide coke with a unique opportunity to update its customers with its latest products,

offers and other USPs, more personally and more effectively.

Relevant fliers and posters can be distributed on-site to ensure the message remains with the

customer for long, eg in a cooking class it can distribute few recipes with any one of the coke

products in background.

It will help Coke form an increasingly loyal customer section from the household.

Sponsoring any kids event running in ABRL, Bib Bazaar which can have an entry through coke EAN

codes or caps of the bottle and coca cola goodies can be given away as prizes.

Repetitive announcements of offers in store through their in store radios.

A video advertisement of coca cola products in Big bazaar’s own Future Group Channel. E.g Chings

Noodles have been doing this.

Proper arrangement of all the coke products together in order of increasing or decreasing pack size on

shelves this gives them more visibility .

37

Extra availability of fast moving and preferred brands and during any promotion.

Bundling of products can be done and MRP discount on total can be given rather than individual MRP

discount on MRP .

Tertiary displays in categories like snacks, processed food, fruits (for juices) can be done to increase

the incidences of the product.

Rather than giving price discounts quantity can be increased.

A flex board featuring Coke Zone can be used and put above the shelves of coca cola product in ABRL

,which is visible from all the extreme corners for increasing the visibility.

As Coca Cola is an official sponsor of FIFA world cup 2010, this association can be used as a coke

promotion in stores having sports and kids zone.

Trade discounts on bulk purchase can also be given to encourage sales.

38

REFERENCES

Sites Referred:-

www.coca-colaindia.com

www.google.com

www.tutor2u.net/business/gcse/marketing_promotion_sales.htm

www.eimpactpos.com/graphics/

www.web-books.com/eLibrary/NC/B0/B64/076MB64.html

Books Referred:-

Marketing Management : Philips Kotler

Marketing Research : Naresh M Malhotra

Journals and Newspapers:-

India Knowledge @Wharton

Case Analysis Coke Pepsi War