final coca cola project report nitin

MADE BY NITIN KUMAR JOSHIA BBA (E) 3RD SEMESTER JIMS

MARKETING SUMMER TRAINING

Project Report For Coca-Cola Beverages Pvt Ltd.

Under guidance of SUBMITTED BY MR. DURGESH NARAIN NITIN KUMAR JOSHIA BBA 2008-10

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOLOFC POCKET - 9 , SECTOR – B VASANT KUNJ

NEW DELHI

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COCA-COLA ENTERPRISE INC.

Type : Public

Founded : 1886

Headquarters : Atlanta Georgia USA

Chief Executing Officer : John Brock

Chief Financial Officer : William W Douglas

Industry : Beverages

Revenue : $19800 billion USD

Operating income : $1.495 billion USD

Net Income : $1.143 billion USD

Employees : 73000 (approx)

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CERTIFICATE

This is to certify that Mr. NITIN KUMAR JOSHIA , BBA IP

Evening(A) III Semester has completed the project titled Marketing

Strategies of COCA COLA under the supervision of Dr. DURGESH

NARAIN , M. Sc. Ph. D. IDCA (USA) for the fulfilment of the

requirement as a course of study.

Place: New Delhi PROJECT GUIDE

Date: Dr. Durgesh Narain

M.Sc. Ph.D. IDCA (USA)

(Associate Professor )

ACKNOWLEDGEMENT

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After carrying out thorough study, I have prepared this

project report on the Marketing Strategy of COCA COLA

Ltd. The data for the contents of which have been carefully

derived from various sources including the World Wide Web,

books, magazines, brochures and newspapers.

I owe sincere thanks to my teacher Dr. DURGESH NARAIN,

for his constant guidance, assistance & monitoring. Working

on this project has helped me gain a complete perspective of

how COCA COLA handles the marketing, promotion &

distribution of their products in India. I am quite sure that

the knowledge that I have acquired from this exercise will

benefit me in the near future.

NITIN KUMAR JOSHIA

INDEX

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CHAPTER 1- Objective of study Scope of study

CHAPTER 2- INTRODUCTION

CHAPTER-3 Company Profiles History of Coca cola Cocacola in India

CHAPTER-4 Industrial Profile Soft drink Industry In India Coca-Cola in India Vision of coke in India Mission of coke in India

CHAPTER-5 Product Profile Different brands of the Company Brand Tagline Brand Ambassadors Detail of Brands

CHAPTER -6 Competitive Areas Competitive area among Coke & Pepsi Advertising Brand ambassadors & TV Commercials Promotion by the company

CHAPTER -7 Marketing Department Marketing department

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Distribution Network Sales promotion techniques of the company Criteria for providing free chilling equipment S.G.A providing company

CHAPTER-8 Methodology Research methodology PGP Plan Pre Sale Concept

CHAPTER -9 Hypothesis Test of hypothesis Swot analysis Push & Pull Strategy

CHAPTER -10 Conclusion Conclusion Findings Facts Suggestions

CHAPTER -11 Questionnaire

QUESTIONAIRE Declaration References

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OBJECTIVES OF STUDY

The main objective of this RED project is to increase the sales of

the company.

The next objective of this projects is to advertise the various

Products of the company.

To find out the present status of ThumsUp, Coke, Sprite, Limca,

Fanta, Maaza at the retail outlets in the area.

To study the receipting of brand among retailers.

The study helps to know the distribution and marketing strategy of the

company.

To find out available opportunities in the market by finding gaps in

competitors penetration.

To collect data from retailers for the activation of new channels.

Find out ways to increase sales new launches to different channels.

To study the presale concept of the coke.

To enhance the market share of the company.

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SCOPE OF THE STUDY

By this study company can know its growth.

This study helps the company to know their actual position in the

market.

RED helps to find out the promotion activities of the company and

help to make relevant changes according to their rivalry company.

This study ensures the availability of the product in the market.

The study also helps in the evaluation of the market developer.

RED helps to maintain the outlets in a well designed way to attract the

consumers.

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3. COMPANY PROFILES

JOHN PEMBERTON

HISTORY OF COCACOLA

The world has changed in many ways since pharmacist, John Styth

Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta,

Georgia. The name and the product mean so many things to hundreds of

Millions of consumers around the globe. Coca-Cola products are served

more than 705 million times every day, quenching the thirsts of consumers

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http://images.google.co.in/imgres?imgurl=http://cocaine.org/coca-cola/john-pemberton.jpg&imgrefurl=http://cocaine.org/coca-cola/index.html&usg=__cLPeElwco_zofnZfgWW-PhTBv0E=&h=608&w=490&sz=30&hl=en&start=1&tbnid=yXvQfUT1S30XjM:&tbnh=136&tbnw=110&prev=/images%3Fq%3Djohn%2Bpemberton%2Bcoca%2Bcola%26gbv%3D2%26hl%3Den


in more than 195 countries in every climate. That's a long way to come after

such a modest beginning..

May

1886

- Pemberton concocted a caramel-colored syrup in a three-legged

brass kettle in his backyard. He first "distributed" the new product

by carrying Coca-Cola in a jug down the street to Jacobs

Pharmacy. For five cents, consumers could enjoy a glass of Coca-

Cola at the soda fountain. Whether by design or accident,

carbonated water was teamed with the new syrup, producing a

drink that was proclaimed "Delicious and Refreshing." Dr.

Pemberton's partner and bookkeeper, Frank M. Robinson,

suggested the name and penned, in the unique flowing script that is

famous worldwide today, " ".

1886 - Sales of Coca-Cola averaged nine drinks per day. That first year,

Dr. Pemberton sold 25 gallons of syrup, shipped in bright red

wooden kegs. Red has been a distinctive color associated with the

No. 1 soft drink brand ever since.

1891 - Atlanta entrepreneur Asa G. Candler had acquired complete

ownership of the Coca-Cola business for $2,300. Pemberton was

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forced to sell because he was in a state of poor health and was in

debt. Within four years, Candler's merchandising flair helped

expand consumption of Coca-Cola to every state and territory.

1893 - In January "Coca-Cola" was registered in the U.S. Patent office.

1917 - 3 Million Coke's sold per day. " " is the worlds most

recognized trademark.

1919 - The Coca-Cola Company was sold to a group of investors for $25

million.

1923 - The Coca-Cola Company was sold after the Prohibition Era to

Ernest Woodruff for 25 million dollars. He gave Coca-Cola to his

son, Robert Woodruff, who would be president for six decades.

Woodruff's leadership took the business to unrivaled heights of

commercial success, making Coca-Cola an institution the world over.

During the Woodruff era, Mr. Woodruff made a promise to the armed

forces of the United States to supply Coca-Cola to every serviceperson.

He said that costs and location did not matter; he supplied 5 billion

bottles to the service.

1925 - 6 Million Coke's sold per day.

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1927 - The first Coca-Cola radio advertisement.

1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first

time.

1943 On June 29, an urgent cablegram arrived from General Dwight

Eisenhower's Allied Headquarters in North Africa, requesting 10

Coca-Cola bottling plants to serve American servicemen overseas.

Eventually, 64 plants were set up during WWII.

1950 - Advertising on on the television began. Currently Coca-Cola is

advertised on over five hundred TV channels around the world.

1961 - Sprite was introduced.

1971 - The song "I'd like to Buy the World a Coke" was released.

1978 - The two liter bottle was introduced, and during that same year the

company also introduced plastic bottles

1982 - Diet Coke was introduced in July.

1985 - The Coca-Cola Company made what has been known as one of the

biggest marketing blunder. They stumbled onto a new formula in

efforts to produce diet Coke. They put forth 4 million dollars of

research to come up with the new formula.

The new formula was a sweeter variation with less tang, it was also

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slightly smoother. The factor that influenced the change was that

Coke's market share fell 2.5 percent in four years. Each percentage

point lost or gain meant 200 million dollars. This was the first flavor

change since the existence of the Coca-Cola company. The change was

announced April 23, 1985 at the Vivian Beaumont Theater at the

Lincoln Center. Some two hundred TV and newspaper reporters

attended this very glitzy announcement.

The change to the world's best selling soft drink was heard by 81

percent of the United States population within twenty-four hours of the

announcement. Within a week of the change, one thousand calls a day

were flooding the company's eight hundred number. Most of the callers

were shocked and/or outraged, many said that they were considering

switching to Pepsi. Within six weeks, the eight hundred number was

being jammed by six thousand calls a day. The company also fielded

over forty thousand letters, which were all answered and each person

got a coupon for the new Coke. Many American consumers of Coca-

Cola asked if they would have the final say. When Pepsi heard that the

Coca-Cola company was changing its secret formula they said that it

was a decision that Pepsi tastes better. Roger Enrico, the president and

CEO of Pepsi-Cola wrote a letter to every major newspaper in the U.S.

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to declare the victory.

Coca-Cola management had to decide: Do nothing or "buy the world a

new Coke". They decided to develop the new formula.

1985 - July 10, eighty-seven days after the new Coke was introduced, the

old Coke was brought back in addition to the new one. This was

greatly due to dropping market share and consumer protest. The

market share fell from a high of 15 percent to a low of 1.4 percent.

This was said to be a classic marketing retreat. Coca-Cola

executives admitted that they had goofed by taking the old Coke

off the market. The Coca-Cola company's eight hundred number

received eighteen thousand calls of gratitude. The comeback of old

Coke drove stock prices to the highest level in twelve years. This

was said to be the only way to regain the lead on the cola wars.

1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.

1996 - The Summer Olympics will be held in Atlanta, Georgia, the home

of Coca-Cola. For more than 65 years, Coca-Cola has been a

sponsor of the Olympics.

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CSR (COMPANY SOCIAL RESPONSBILITY)

One great earmark that the Coca-Cola Company has is helping the people of

Atlanta. They accomplish this through scholarships, hotlines, donations and

contributions. Another large accomplishment that the Coca-Cola has, is

being the first company to make and use recycled plastic bottles.

JOHN PEMBERTON

COKE IN INDIA

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Despite the formidable track of its parent $18 billion giant in Atlanta

USA.Coke India record 1800 crore soft drink makers is prominent.Cocacola

entered in India market after 16 years from Hathras Dec 1993.Cocacola

became the undisputed leader of the Indian soft drink market because of

their aquiring rights of Ramesh Chauhan aerated Parle drinks with one

stroke of pen and a bill of 140 crore, coke picked by five brands Thums up,

limca, Goldspot, Citra, Maaza with a combined rate of 65% with Thumsup

alone accounting for 56% then 650 crore segment.

BENCHMARK

Cocacola ranks no.1 brand in the world by the business world survey

followed by companies like Microsoft and IBM.

Cocacola is the market leader in the whole world in beverage industry.

Business week magazine ranks Cocacola on 4th position in Indian

FMCG industry.

Cocacola enjoys approx 60% market share in Indian beverage

industry .

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4. INDUSTRIAL PROFILE

SOFT DRINKS INDUSTRY IN INDIA

Since the early 1990’s Coca-Cola Corporation and PepsiCo have been

combating on what is known as the “Beverage Battlefield” in India. Today

India is one of the most sought after countries for foreign investments

because of their continually growing market opportunities. However during

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BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola


Coca-Cola and Pepsi’s attempts to broaden their global consumer bases both

companies encountered several obstructions on their pursuits of conquering

the Indian soft drink market.

INTIAL DIFFICULTIES

From a historical standpoint, Coca-Cola and Pepsi were facing

obstructions even before entering the market in the late 1980’s. Coca-Cola’s

past venture in India had ended on bad terms with the Indian government

when they refused to offer up their trade secrets. During the absence of

foreign investment in the soft drink industry in India a local company, Parle,

became the market leader. Parle invested a great deal into their leading

brand, Thums Up, and played a dominant role in the soft drink industry until

the liberalization of the Indian economy in 1991. After this time many of the

political and legal obstacles facing Coca-Cola and Pepsi were lessened.

POLITICAL CHALLENGES

Other political challenges hindered the success of Coca-Cola and

Pepsi in India as well. In 2003, when the United States and Britain invaded

Iraq, the All-India Anti-Imperialist Forum called a boycott on goods from

America and India. Indian’s protested American companies for the war and

specifically targeted Coca-Cola and Pepsi products. While the war was

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beyond control for these two companies, management perhaps could’ve

done more to not only attempt to predict the backlash from Indian

consumers due to the war, but also could’ve created advertisement

campaigns to address the situation.

While political and legal factors produced problems for Coca-Cola

and Pepsi, both Coca-Cola and Pepsi did a lot of things to prevent that

situation from happening. Both companies heavily participated in the

cultural festival of Navratri in western India to promote their products and

create brand awareness in a culturally traditional setting. The companies also

produced television and print advertisements that linked important Indian

themes to their products by “building a connect using the relevant local

idioms” Coca-Cola and Pepsi both utilized popular Indian sporting events,

athletes, and celebrities to endorse their products. Both companies could’ve

made the mistake of using American celebrities or already made American

commercials to advertise their products in India, but instead made the right

move by making advertisements to specifically target their foreign market.

PRICING POLICY FOR INDIAN MARKET

Coca-Cola and Pepsi also made the right moves by adapting to

cultural barriers in India. One such barrier was the affordability of products

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for Indians. Because India is a country where people are known to live on

very little a day, the idea of getting people to spend what little they have on a

soft drink could be quite a stretch. However Coca-Cola India went with an

aggressive pricing policy and reduced the price of their soft drinks in 2003

from 15% to 25% nationwide. To compete competitively in the market,

Pepsi reduced their prices as well. This move allowed both companies to

offer products that were affordable to the target market in India but also

encouraged more Indians to consume Pepsi and Coca-Cola products.

Both companies also created smaller sized bottles to allow for lower

prices for Indian consumers. Coca-Cola and Pepsi created bottles ranging in

size from 200 ml to 500 ml to adapt to cultural needs and increase their

sales. By offering smaller sized bottles many consumers also increased the

frequency in which they were purchasing the soft drinks.

COCACOLA IN INDIA

Coca-Cola was the leading soft drink brand in India until 1977 when it left

rather than reveals its formula to the government and reduces its equity stake

as required under the Foreign Exchange Regulation Act (FERA) which

governed the operations of foreign companies in India. After a 16-year

absence, Coca-Cola returned to India in 1993, cementing its presence

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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

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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 2003.24

Coca-Cola India produced its beverages with 7,000 local employees at its

twenty-seven wholly-owned bottling operations supplemented by seventeen

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.25 In addition

to its own employees, Coke indirectly created employment for another

125,000 Indians through its procurement, supply, and distribution

networks.

COCACOLA :VISION

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Provide exceptional strategic leadership in Coca-Cola India System resulting

in consumer and customer preferences and loyalty through Coca-Cola’s

commitment to them and in highly profitable Coca cola branded beverage

system.

COCACOLA:MISSION

Create consumer products services and communications customers service

and bottling system strategy process and tools in order to create competitive

advantage and deliver superior value to-

Consumers as a superior beverage experience.

Consumers as an opportunity to grow profit through the use of

finished drinks.

Bottlers as an opportunity to make reasonable to grow profits and

value added

Suppliers as an opportunity to make reasonable when creating real

value added in environment of system wide teamwork, flexible

business system and continuous improvement.

Indian society in form of contribution to economic and social

development.

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5. PRODUCT PROFILE

DIFFERENT BRANDS OF COMPANY

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 :

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In the Lemon Section

In the Orange & Apple section:

In the mango section:

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In the juice section :

In the Soda Water and Bottled Mineral Water section:

BRANDS TAGLINE

Thumsup - Taste the thunder

Cocacola - Open happiness

Sprite - Seedhi baat no bakwaas ,clear hai

Limca - Fresh ho jao

Fanta - Go bite

Maaza - Bina guthli wala aam

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BRAND AMBASSDORS

Thumsup -Akshay Kumar

Cocacola -Aamir Khan

Sprite -Shahrukh Khan

Fanta -Genelia D’souza

Limca -Riya Sen

ABOUT BRANDS

THUMS UP

It is the leading brand of the company. It

has cola flavor. Thumsup is the highest selling beverage brand of India.

Mostly like by the youngsters specially boys.

The competitor of the brand on same category is Pepsi.

COCACOLA

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This is the worlds most famous & old brand.

This brand is specially liked by teenagers & youngsters.

The competitor on the cola category is Pepsi.

SPRITE

This brand is the one of the fastest growing brand in the country. Sprite is

liked by all age groups & people. Jan 09 report of “The times of India”

claims sprite to be the second brand in sales after Thumsup

Competitor : 7up & Mountain dew

LIMCA

Limca is cloudy lemon in flavor. This is very unique in this category .It has

white in color.

Competitor : Nimbooz

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FANTA

Fanta has two flavors apple & orange. This is very popular drink among

females.

Competitor: Mirinda, Parle’s Appy fizz

MAAZA

This has mango flavor. Maaza is popular among children and women.

Competitor: Slice, frooti

MINUTE MAID pulpy orange

This is orange juice .This contains no sugar & added flavor .This is a family

drink.

Competitor : Tropicana

KINLEY

This comes in two variety-mineral water & soda. Mineral water is used by

all but soda is commonly used for alcoholic purpose by adult people.

Competitor : Aquafina, Bisleri

PACKAGING DETAILS

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600ML

2 LTR

250ML

200ML

300ML

PACK SODALIMCASPRITEFANTA THUMSUP

COKEMAAZA

YES

YES

NO

YES

NO

NO

NOYES

YES

YES

NO

YES

YES YESYESYESYESYES

NONOYES

NONOYES

NO

YESYESYESYESYES

NOYESYESYESYES

NONONONONO

NOYESYESYESYES


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NUMBER OF BOTTLES IN A CASE

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1.2 LTR

1 LTR

600ML

2 LITRES

250ML

200ML

300ML

PACK NO.OF BOTTLES IN A CASE

12

6

24

9

24

24

24


6. COMPETETIVE AREA

Competitive area among Coke & Pepsi

Coca-Cola India Pvt Ltd maintained its leading position in soft drinks in

India, followed by PepsiCo India Holdings Pvt Ltd in 2006. Whilst the retail

volume shares of Coca-Cola India and PepsiCo India slipped in 2006, as a

result of the growing health concerns caused by the aftermath of the

pesticides controversy, both maintained a comfortable lead over the other

manufacturers. Parle ,Bisleri Ltd has steadily gained shares from the

carbonates giants over the review period, to emerge as the third ranked

company in 2006. The battleground for beverages has moved from

carbonates to bottled water and fruit/vegetable juice, with manufacturers

turning their attention towards these healthier beverages, as consumer

interest continues to surge forward. A number of new players have entered

fruit/vegetable juice and bottled water, vying for a slice of the growing pie.

While cricket had always been the most popular sport in India,

with new technology coming into cricket from coverage to sports gear to

day/night versions of the game, it was set to acquire the status of a religion

in the sub-continent. Pepsi picked up the opportunity early on by not only

contracting the rights to all Tests and One Day Internationals (ODIs) played

in India, but also signing up top performers early such as Sachin Tendulkar

and Rahul Dravid and creating some very cutting edge and memorable

advertising campaigns with them.

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The distribution network of Coca cola had 6.5 lakh outlets across the country

, which the company is planning to increase to 8 lakhs . On the other hand

Pepsi Co's distribution network had 6 lakh outlets across the country which

it is planning to increase to 7.5 Lakh .

ADVERTISING

Advertising is a non promotion of goods & services by sponsor who can

identified and who has paid for his communication. Their purpose of

advertisement is to sell something goods or services,idea ,person or place.

BRAND AMBASSDORS & TV COMMERCIALS

COLA WAR (neck to neck)

Bollywood rising stars Asin (left) for Pepsico’s Mirinda,Genelia D’souza (Right) for

cocacola’s Fanta

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.

Tennis star Sania Mirza for Sprite

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Bollywood star Aamir Khan for Coke

Bollywood star Akshay kumar for Thums up

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Sprite “seedhi baat” TV add

Limca “fresh ho jao” TV add

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Minute maid pulpy orange TV add

Bollywood superstar Shahrukh Khan new Brand Ambassador of Sprite

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PROMOTION BY THE COMPANY

Promotional strategy during IPL matches

Lucky Coupon Dinner with kings XI Punjab

Sprite “kholega toh bolega” IPL Season 2

Riding on the passion of T20 cricket amongst consumers, Brand Sprite,

Official Pouring Partner of Kolkata Knight Riders (KKR) had announced

the launch of a Special edition ‘Sprite Kolkata Knight Riders’ bottle. The

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latest initiative was a part of brand Sprite’s larger consumer engagement

program to leverage the second season of DLF IPL, 2009.

Independent research reports have shown, out of the 230 million mobile

phone users in the country, the youth continues to be the largest users of

mobile phones. Combining this key insight with the passion of T20 cricket,

company had launched a special edition ‘Sprite Kolkata Knight Riders’

bottle with insignia of key players.

Complimenting the innovation, Sprite was also rolling out a special

‘Kholega Toh Milega’ digital initiative in association with KKR and Nokia.

In the offer consumers just need to drink Sprite and look out for a unique 9

digit code under the crown and SMS the code. Lucky consumers get once-

in-a-lifetime opportunity to meet Shahrukh Khan and members of the KKR

team. In addition, consumers also get a chance to win a Nokia mobile phone

every hour. The entire initiative was applicable RGB and also on all PET

packs of Sprite.

To create awareness about ‘Kholega Toh Milega’ digital initiative, the

company had launched a mass media campaign featuring Shahrukh Khan,

owner KKR, to be telecast on all the leading TV channels across India.

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PROMOTION DURING OFF SEASON

Limca Launches ‘Laptop Ki Barish’ Consumer Initiative

Coca-Cola India has announced the launch of its innovative ‘Limca ‘Laptop

Ki Barish’ consumer initiative nationally. As part of this unique initiative a

computer generated lucky draw would provide consumers a chance to win

“HP Mini Laptop” every hour for the next 45 days. The initiative is

applicable to 200ml, 300ml returnable glass bottles (RGB) and also on 500

ml, 600 ml 1.25, 1.5, 2 & 2.25 liters PET bottles of Limca. As part of the

under the crown initiative consumers just need to SMS “LIMCA” followed

by a 9 digit unique code to 58558 from their GSM / CDMA mobile phones.

The national initiative is designed to leverage the popularity of digital

media like mobile phones (Both GSM & CDMA & IVRS), internet and

laptops amongst soft drink consumers and would run from 1st August to

14th September, 2009

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7. MARKETING DEPARTMENT

Marketing Team at Kanpur

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AODMayank Arora

RTMAlok

Chandra

ASMManish kumar

Channel Manager

Punit Tandon

GSMDeepak Rivari

RTM Executive

STLDheeraj Agarwal

Channel Executive


CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

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Manufacturing Plant, KANPUR (H.P)

Sales and Distribution Operations

Distributors

Outlets

Outlets


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

they need it.

A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution

Warehouse --- Retail Stock --- Retail Shelf --- 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.

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Criteria for providing free chilling equipment

An ice box is provided for the sale of 1-2 crates daily to the retailers.

For the sale of 5-6 crates daily a visi cooler of 4 crates is provided.

For the sale of 7-8 crates daily a visicooler of 7 crates is provided by

the company.

If the sale exceeds 9 crates daily then a visicooler of 9 crates or deep

fridger is provided by the company,

A STEPLIZER OF 1 KV to 5 KV is provided with the visi cooler & chest

cooler,

SGA PROVIDING COMPANIES

Whirlpool India Limited

Godrej Appliances

Western refrigerator limited

Rockwel Industries

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8. RESEARCH METHADOLOGY

The research includes the study which was descriptive in nature.It basically

aims about how coke schemes plays in the mind of shopkeepers and the

consumers.

The study includes two methods-

(a)PRIMARY

(b)SECONDARY

Primary includes the following ways-

Observation

Experiment

Survey

Here we include the primary method of survey

Research Instruments-

Questionnaire-A printed questionnaire was their to make the survey.

RED scoring sheet

Area of Survey-Yashoda nagar,Shyam nagar,Koyla nagar,Kidwai

nagar

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Sampling plan

Sampling unit - Owners of the retail outlets.

Sampling size- 250 outlets

Sampling procedure-Random sampling

Sampling method- Retailers survey

SECONDARY DATA- For the secondary study data was not available so

it is taken from company records.

AREA- Govind nagar, Naveen market, Arya agar, Yashoda nagar, Kidwai

nagar

SIZE OF VISICOOLER

IS PRESELLING IS GOOD OR THERE IS SOME GAP

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HOW MUCH HAS THE VISIBLE PRODUCT?

LEADING BRAND OF COCACOLA

CHANNEL OF COKE

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OUTLET BELONG TO WHICH CLASS

INCOME GROUP

MARKET SHARE

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DIVISION OF MARKET

RETAILER FAMILIAR WITH PROJECT RED

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Project RED is a live project. It can broadly be classified in two stages,

which can be described as follows.

Initial Stage:-

This stage comprises of Product Knowledge and Process Knowledge.

The product knowledge means the knowledge of every product and its

variants offered by the company-

The Process Knowledge means the knowledge about the distribution

of the product and its variants from the sales depot to the different

retailers of the city.

The actual knowledge about the product and the process was attained with

the help of Route Riding.

Route Riding means to visit different outlets on the commuting vehicle

(vehicle which carries coke product from depot to different outlets) along

with salesman. By the route riding it is very easy to grasp and understand

how the cola market actually works. Route riding elaborated the factors

influencing the cola market and provided the information about the

competitor’s strategies and schemes which they offer to the retailers in order

to gain advantage. Retailer’s grievances were best know with the help of

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route riding through personal interaction. Also with route riding any one can

know about the sales status of an outlet on a daily basis.

Later stage :

This stage comprises of the serious implementation of the

project RED in the area of Yashoda nagar, Kidwai nagar,KANPUR.

To ensure effective and fruitful implementation of the campaign,

market developers (M.D.) were appointed by the company. Market

Developers carried the responsibility to handle all the activities under

the R.E.D. campaign.

The first step involved in this stage was to select the outlets

where the campaign has to be implemented. The outlets are selected on the

basis of some parameters like annual sale of the outlet, type of the outlet,

space available at the outlet etc. Total available market was mainly

segmented on two parameters, which are already discussed above.

(1.) Outlet volume

(2) Channel cluster

PJP PLAN

(P.J.P. plan):. The P.J.P. plan is a day wise schedule of a market

developer which contains the names of the outlets to be visited by him

coming under the campaign R.E.D. where the project has to be implemented.

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After getting permanent journey plan the next step was to visit the

outlets for gaining initial information of every individual outlet as well as

market on a whole. The visit to all the outlets of that area helped in revealing

its market condition. Visiting the outlets clearly showed the picture of the

market situation prevalent in market..

PRE SALE CONCEPT

This is a new concept by the company. In this concept company takes order

one day before and then delivers the product to each route. So this gives

more time to market developer to assure RED.

This concept has so many advantages-

This gives more time to the market developer for the activation &

branding purpose.

By this company can easily implement the RED concept in better

way.

Presale concept makes assure of more availability of the products in

the market.

This concept is easy in processing.

By this concept market developer can arrange the product in better

way.

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The Company can display its products in proper way so that

customers can attract towards it.

9 .HYPOTHESIS

Hypothesis

(A) Null hypothesis (H0 ):The coke has more consumption then

Pepsi.

(B) Alternate Hypothesis (H1): The coke has not more consumption

then Pepsi.

(C) Let the level of significance is(α)= 5%In testing the hypothesis

since the test is two tailed is Z=+-1.96

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TEST FORMULA

Z= P1-P2 √PQ[1+ 1] n1 n2

P= n1P1 +n2P2 n1+n2Q=(1-P)

where

P-Total population proportion of Coke & PepsiP1-Sample proportion of cokeP2-Sample proportion of Pepsin1- sample size of coken2- sample size of Pepsi

After calculated value is Z=1.34 which is less then calculated from the table Z=1.96 hence null hypothesis is accepted.CONCLUSION –The coke product is more consumption then Pepsi.

2) Hypothesis

(A)Null hypothesis (H0 ):The market share of coke is higher then

Pepsi.

(B)Alternate Hypothesis (H1): . The market share of coke is not

higher then Pepsi.

(C)Let the level of significance is(α)= 5% which the hypothesis is

tested.

FORMULA

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Z = P*-P √P(1-P) n

P=Sample proportionP*=Population proportionn=sample size

The calculated value is less then value calculated from the table that is 1.96, So the null Hypothesis is accepted.

CONLUSION- The Market share of coke is higher than Pepsi

3) Hypothesis

(A)Null hypothesis (H0 ):Presale is good for the company.

(B)Alternate Hypothesis (H1): Presale is not good for the company

(C)Let the level of significance is(α)= 5% which the hypothesis is

tested.

FORMULA

Z = P*-P √P(1-P) n

P=Sample proportionP*=Population proportionn=sample size

The calculated value(1.56) is less then the value calculated from the table that is 1.96 hence hypothesis is accepted.

Conclusion – Presale is good for the company.

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SWOT ANALYSIS

1. STRENGTHS:-

DISTRIBUTION NETWORK: The Company has a strong

distribution network consisting of a number of efficient salesmen,

700,000 retail outlets and 8000 distributors. The distribution fleet

includes different modes of distribution, from 10-tonne trucks to

open-bay three wheelers that can navigate through narrow alleyways

of Indian cities and trademarked tricycles.

STRONG BRANDS: The Coca-Cola has been named the world's

top brand for a fourth consecutive year in a survey by consultancy

Interbrand. It was estimated that the Coca-Cola brand was worth

$70.45billion. People all over the world enjoy coca cola products

more than 1.3 billion times per day.

COST OF OPERATIONS: The production, marketing and

distribution systems are very efficient due to forward planning and

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maintenance of consistency of operations, which minimizes wastage

of both time and resources, leads to lowering of costs.

2: WEAKNESSES:

LOW EXPORT LEVELS: The brands produced by the company

are brands produced world wide thereby making the export levels very

low. In India, there exists a major controversy concerning pesticides

and other harmful chemicals in bottled products including Coca-

Cola .Therefore, people abroad, are apprehensive about Coca-Cola

products from India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY

TO INVEST AND ACHIEVE ECONOMIES OF SCALE:

The Company’s operations are carried out on a small scale

and due to Government restrictions and ‘red-tapism’, the Company

finds it very difficult to invest in technological advancements and

achieve economies of scale.

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3: OPPORTUNITIES :

LARGE DOMESTIC MARKETS: Coca-Cola India claims a 60.1

per cent share of the soft drinks market; this includes a 42 per cent

share of the cola market. Other products account for 18.1 per cent

market share, chiefly led by Limca.

EXPORT POTENTIAL: The Company can come up with new

products, which are not manufactured abroad, like Maaza etc and

export them to foreign nations. It can come up with strategies to

eliminate apprehension from the minds of the people towards the

Coke products produced in India.

HIGHER INCOME AMONG PEOPLE: Development of India as

a whole has lead to an increase in the per capita income thereby

causing an increase in disposable income. The beverage industry can

take advantage of such a situation and enhance their sales.

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4: THREATS:

IMPORTS: As India is developing at a fast pace, the per capita

income has increased over the years .If consumers shift onto

imported beverages rather than have beverages manufactured

within the country, it could pose a threat to the Indian beverage

industry as a whole in turn affecting the sales of the Company.

TAX AND REGULATORY SECTOR: The tax system in India

is accompanied by a variety of regulations at each stage on the

consequence from production to consumption. Therefore, this can

limit the growth of the Company and pose problems.

SLOWDOWN IN RURAL DEMAND: Low per capita

disposable income, large number of daily wage earners, poor roads;

power problems; and inaccessibility to conventional advertising

media. All these problems might lead to a slowdown in the demand

for the company’s products.

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CHANGING OF CONSUMERS PREFERENCE: The

Company should keep a eye on the changing preferences of the

consumers.

PUSH & PULL STRATEGY

PUSH STRATEGY:-

HCCBPL is using Push strategy in which they use its sales force and trade

promotion money to induce intermediaries to carry, promote and sell the

product to end users i.e. consumers.

For example-as HCCBPL is giving free pet bottles and other trade schemes

to distributors, agency owners and retailers.

PULL STRATEGY:-

HCCBPL is also using Pull strategy in which they are using advertising and

promotion to persuade consumers to ask intermediaries for the company

brand product by this way HCCBPL inducing customer to order it from

shopkeeper.

For example-HCCBPL is using flanges, display racks, tier racks, standees,

mobile hangers and visicooler brand strips.

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10. CONCLUSION

RED is a worldwide project of COCA COLA Company. This project is

playing a very important role for the company. With the help of this project,

sale of the company has been increased. Because in this project there is one

market developer who has to ensure that Visicooler must be on prime

location, all brands must available, all brands must displayed in brand order

i.e. COLOJK. All the activation elements like warm display rack, table top

rack, standees etc must be available at all outlets come under RED. All these

elements help the company in increasing the sales because

JO DIKHTA VO BIKTA HAI

Definitely when sales increase then profits also

increases. With the help of this project company has increased its sale in

Kanpur region and also company can measure or check the performance of

each retailers working all over the world with COCA COLA COMPANY.

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FINDINGS

1). According to the demand of outlet owners, delivery of products are not

made available in the outlets.

2). Efficient brands of coca – cola are not available in outlets.

3). Sales people and delivery persons do not visit the outlets on a regular basis.

4). Advertisement materials are not available in the right time at the right place i.e.

Different Channels like Grocery, Convenience, E&D.

5). Many outlet owners have complains on improperly working visicooler i.e. its cooling

Capacity is low or its lights are not working.

6). Improper management is seen as No mechanics visit the outlets despite of

Complaints issued by outlet owners

7). Visicoolers are not placed at their Prime locations in many outlets

8). Many outlet owners express deep in satisfaction towards coca-cola as they do not get

any Prize or Cash discount as they receive from other companies.

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FACTS

The most popular flavor is Thumsup in the whole market.

Cocacola is the market leader and Pepsi is the market challenger.

Thumsup has the highest sales from the Coca cola’s side and from the

Pepsi‘s side mountain Dew has the highest sales.

Aquafina has more sales then Kinley in mineral water segment.

Pepsi provides more schemes then Cocacola.

Sprite has the fastest grownup brand in the clear lime segment in the

recent years.

In the off season when the sale is reduced retailers want more

schemes.

Minute maid has not getting good response from the market.

SUGESSTIONS

1. Delivery position should be maintained to get good return from the

market.

2. The company must try to make different brands of Coca-Cola available

at every retail outlet whether it is large or small, otherwise the

consumer may go for substitute.

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3. Sales People and delivery persons should properly monitor the market

whether stocks are available and are properly utilized in the market or

not.

4. We can provide them beautiful display racks, tablemats, menu-cards

etc, containing the trademark and brand name of the company.

5. Display material should be provided to the retailers on more regular

basis to increase the sales level.

6. Maintenance work of refrigerator; i.e. purity must be improved.

8. The company should take steps to replace damaged or unsellable Coca-

Cola goods frequently from the retailers.

9. The Company employees should make direct contact with the consumers,

so that they may aware with real situation of the market and consumers

attitude towards the product. For this they can arrange awareness camps in

different locations.

10. At every petrol-pump we should install Fountain Machine. It will be

helpful in generating impulse purchase and also as awareness about the

products of the company among the consumers.

11. QUESTIONNAIRE

NAME -AREA -

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CONTACT NO-

COCA COLA CORPORATION LTD .

INSTRUCTIONSWRITE SERIAL NO. IN THE COLUMN

Q.1 ARE YOU AWARE ABOUT THE PRESENT SOFTDRINK BOOM IN THE MARKET ?

1) YES 2) NO 3) DO NO KNOW

ANS .

Q.2 WHICH SOFTDRINK BRAND WOULD YOU LIKE ?1) COCA COLA 2) PEPSI 3) NONE

ANS.

Q.3 WHAT METHOD DO YOU FOLLOW FOR MARKETING OF YOUR PRODUCT ? 1) ONLY INDIRECT DEALERSHIP METHODS 2) ONLY DIRECT SALES.3) BOTH .

ANS .

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Q.4 DO YOU THINK ADVERTISING WAS AN EFFECTINE METHOD OF SELLING YOUR SOFT DRINK PRODUCTS ?1)YES 2) NO 3) DO NOT KNOW

ANS.

Q.5 WHATB TYPE OF ADVERTISING WILL BE HELPFUL IN SATISFYING OF YOUR PRODUCTS ?1) PRODUCT SPECIFIC2) PERSONALITY ORIENTED 3) ALL THE ABOVE 4) DO NOT KNOW / CANNOT SAY

ANS.

Q.6 DO YOU THINK THAT BRANDIKNG OF SOFTDRINK PRODUCTS HELPS IN THE MARKETING ? 1) YES 2) NO 3) DO NOT KNOW / CANNOT SAY

ANS.

Q.7 DO YOU THINK THAT ADVERTISEMENT ARE THE EFFECTIVE METHOD OF SALE PROMOTION ?1) YES 2) NO 3) DO NOT KNOW / CANNOT SAY

ANS.

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Q.8 DO YOU FOLLOW BRANDING OF PRODUCTS AS A MARKETING STRATEGY ?

1) YES 2) NO 3) DO NOT KNOW / CANNOT SAY

ANS.

Q.9 DOES BRANDING OF THE PRODUCTS HELPS TO IMPROVE THE MARKETING POTENTIAL OF YOUR PRODUCTS ?


ANS.

Q.10 FUTURE OF SOFTDRINK INDUSTRY IN INDIA ?


ANS.

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Q.11 MAJOR WEAKNESS OF COCA COLA MARKETING STRATEGY ?


ANS.

Q.12 HOW DOES OTHER COMPANY AFFECT THE PROSPECTS OF THE DOMESTIC PLAYERS IN THE INDIAN MARKET ?

1) HAVE REDUCED THE PROFIT MARGIN OF THE PLAYERS

2) HAVE MADE THE SOFTDRINK INDUSTRY MORE COMPETITIVE .

3) DO NOT HAVE SIGNIFICANT EFFECT ON THE EXISTING COMPANY IN SOFTDRINK INDUSTY

ANS.

Ω Ω Ω Ω Ω Ω Ω Ω Ω Ω Ω Ω Ω Ω Ω

REFERENCES

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BOOKS

Marketing Management : Philip Kottler

Ramaswamy

Marketing Research : Bound, Stash & Others

“Booklet of RED”, COCA COLA INDIA

INTERNET

www.coca-cola.comwww.cocacolaindia.comwww.oligopoly.comwww.medianewsline.com

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http://www.coca-cola.com/


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final coca cola project report nitin

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