INTRODUCTION

The objective of the project is to know the retailers preferences for

Cola Drinks, to a comparative study on rural and urban retailer satisfaction of

COCA COLA and the report contains a brief introduction of Coca Cola. The

company COCA COLA has interests in various sectors and they provide

consistent quality products to meet our retailers and costumer’s requirement

worldwide.

This report clearly mentions objective of the study and the research

methodology utilized. Both primary data and secondary data. The data

collection method used is structured non disguised questionnaire in which the

types of questions used are open ended, multiple choice and close ended.

The report contains a detailed view of the tasks, which have been

undertaken to analyze the market of COCA COLA. Various sets of

questionnaire have been prepared to know the preference of retailers about the

COCA COLA. Some of the research areas in Chittoor district. This project

reveals one of the important findings like more and more displays of the

window hiring and can be given to the retail outlets to increase its

consumption, more schemes like ‘Credit Schemes’ and other schemes can be

given to the Retailers.

A detailed survey of the retailers was carried to find out their

preferences for COCA COLA. The details of the methodology are stated

below.

Areas are both rural and urban areas in Chittoor district research

design: Exploratory and descriptive. Sources of information are primary and

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secondary data. Data collection method structured designed by the

questionnaire.

Types of questions used open ended, multiple choice and close ended.

Sampling method is random sampling. In this study I found that most of the

retailers prefer their 1st preference to COCA COLA.

2

NEED FOR THE STUDY

Retailer plays a prominent role in any business or market activities.

Without them Product cannot read well to the door steps of customers. So

company should take care of Retailer in ever aspects on the company request,

The study was conducted on Retailer satisfaction with influencing factors on

their satisfaction levels.

Many factors are being influenced on satisfaction levels of retailer in

the process of discharging his duties as retailers without knowing the most

influencing factors on retailers. It is difficulties to design retailers policies to

promote the products in a satisfied manner.

My study at the Coca Cola Company is truly a one-of –a kind

experience. It is more than working for the global beverage leader. It is an

opportunity to be apart of something that impacts the world. Coca cola as a

global icon and keeper of the world’s most valuable brand.

3

OBJECTIVES OF THE STUDY

To know about the satisfaction levels of the retailers on the COCA

COLA products

To identify the fast moving brands.

To know about the consumer preference on the COCA COLA

brands.

To know about the demographical structure of the distribution

system.

4

SCOPE OF THE STUDUY

The project contains an executive summary and data on value, volume and/or

segmentation

- Provides textual analysis of the industry’s recent performance and future

prospects

- Incorporates in-depth five forces competitive environment analysis and

scorecards

- Includes a five-year forecast of the industry

- The leading companies are profiled with supporting key financial metrics

- Supported by the key macroeconomic and demographic data affecting the

market

5

INDUSTRY PROFILE

Soft drinks trace their history back to the mineral waters found in

natural springs. Ancient societies believed that bathing in natural springs

and/or drinking mineral waters could cure many diseases. Early scientists who

studied mineral waters included Jābir ibn Hayyān , Alkindus, Rhazes,

Paracelsus, Robert Boyle, Friedrich Hoffmann, Antoine Laurent Lavoisier,

Hermann Boerhaave , William Brownrigg, Gabriel F. Venel, Joseph Black,

and David Macbride.

The earliest soft drinks were sherbets developed by Arabic chemists and

originally served in the medieval Near East. "Alkaline Substances", "A kind

of Saltwort" from which soda is obtained, probably from Arabic suwwad, the

name of a variety of saltwort exported from North Africa to Sicily in the

Middle Ages, related to sawad "black," the color of the plant. These were

juiced soft drinks made of crushed fruit, herbs, or flowers. From around 1265,

a popular drink known as Dandelion & Burdock appeared in England, made

from fermented dandelion (Taraxacum officinale) and burdock (Arctium

lappa) roots, and is naturally carbonated. The drink (similar to sarsaparilla) is

still available today, but is made with flavorings and carbonated water, since

the safrole in the original recipe was found to be carcinogenic.

The first marketed soft drinks (non-carbonated) in the Western world

appeared in the 17th century. They were made from water and lemon juice

sweetened with honey. In 1676, the Compagnie des Limonadiers of Paris was

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granted a monopoly for the sale of lemonade soft drinks. Vendors carried

tanks of lemonade on their backs and dispensed cups of the soft drink to

thirsty Parisians.

Carbonated drinks:

In late 18th century, scientists made important progress in replicating

naturally carbonated mineral waters. In 1767, Englishman Joseph Priestley

first discovered a method of infusing water with carbon dioxide to make

carbonated water [6] when he suspended a bowl of distilled water above a beer

vat at a local brewery in Leeds, England. His invention of carbonated water,

(also known as soda water), is the major and defining component of most soft

drinks. Priestley found water thus treated had a pleasant taste, and he offered

it to friends as a refreshing drink. In 1772, Priestley published a paper entitled

Impregnating Water with Fixed Air in which he describes dripping oil of

vitriol (or sulfuric acid as it is now called) onto chalk to produce carbon

dioxide gas, and encouraging the gas to dissolve into an agitated bowl of

water.

Another Englishman, John Mervin Nooth, improved Priestley's design and

sold his apparatus for commercial use in pharmacies. Swedish chemist

Torbern Bergman invented a generating apparatus that made carbonated water

from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation

mineral water to be produced in large amounts. Swedish chemist Jöns Jacob

Berzelius started to add flavors (spices, juices and wine) to carbonated water

in the late 18th century.

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Soda fountain pioneers:

Artificial mineral waters, usually called "soda water," and the soda fountain

made the biggest splash in the United States. Beginning in 1806, Yale

chemistry professor Benjamin Silliman sold soda waters in New Haven,

Connecticut. He used a Nooth apparatus to produce his waters. Businessmen

in Philadelphia and New York City also began selling soda water in the early

1800s. In the 1830s, John Matthews of New York City and John Lippincott of

Philadelphia began manufacturing soda fountains. Both men were successful

and built large factories for fabricating fountains.

Soda fountains vs. bottled sodas:

The drinking of either natural or artificial mineral water was considered a

healthy practice. The American pharmacists selling mineral waters began to

add herbs and chemicals to unflavored mineral water. They used birch bark

(see birch beer), dandelion, sarsaparilla, fruit extracts, and other substances.

Flavorings were also added to improve the taste. Pharmacies with soda

fountains became a popular part of American culture. Many Americans

frequented the soda fountain on a daily basis. Due to problems in the U.S.

glass industry, bottled drinks were a small portion of the market in the 19th

century. (They were certainly known in England, though. In The Tenant of

Wildfell Hall , published in 1848, the caddish Huntingdon, recovering from

months of debauchery, wakes at noon and gulps a bottle of soda-water. In

America, most soft drinks were dispensed and consumed at a soda fountain,

usually in a drugstore or ice cream parlor. In the early 20th century, sales of

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bottled soda increased exponentially. In the second half of the 20th century,

canned soft drinks became an important share of the market.

Soft drink bottling industry:

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the

carbonated drink bottle tops during the early days of the bottling industry.

Carbonated drink bottles are under great pressure from the gas. Inventors

were trying to find the best way to prevent the carbon dioxide or bubbles from

escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William

Painter, a Baltimore machine shop operator. It was the first very successful

method of keeping the bubbles in the bottle.

Automatic production of glass bottles:

In 1899, the first patent was issued for a glass-blowing machine for the

automatic production of glass bottles. Earlier glass bottles had all been hand-

blown. Four years later, the new bottle-blowing machine was in operation. It

was first operated by the inventor, Michael Owens, an employee of Libby

Glass Company. Within a few years, glass bottle production increased from

1,400 bottles a day to about 58,000 bottles a day.

Home-Packs and vending machines:

During the 1920s, the first "Home-Packs" were invented. "Home-Packs" are

the familiar six-pack cartons made from cardboard. Automatic vending

machines also began to appear in the 1920s.

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PRODUCTION

Soft drink production:

Soft drinks are made either by mixing dry ingredients and/or fresh ingredients

(e.g. lemons, oranges, etc.) with water. Production of soft drinks can be done

at factories, or at home.

Soft drinks can be made at home by mixing either a syrup or dry ingredients

with carbonated water. Carbonated water is made using a home carbonation

system or by dropping dry ice into water. Syrups are commercially sold by

companies such as Soda-Club.

Ingredient quality:

Of most importance is that the ingredient meets the agreed specification on all

major parameters. This is not only the functional parameter, i.e. the level of

the major constituent, but the level of impurities, the microbiological status

and physical parameters such as color, particle size, etc.

Soft drink packaging:

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U.S. containers in 2008. Various sizes from 8-67.6 US fl oz (237 ml -2 l)

shown in can, glass and plastic bottles

In the United States, soft drinks are sold in 3, 2, 1.5, 1 liter, 500 ml, 8, 12, 20

and 24 U.S. fluid ounce plastic bottles, 12 U.S. fluid ounce cans, and short

eight-ounce cans. Some Coca-Cola products can be purchased in 8 and 12

U.S. fluid ounce glass bottles. Jones Soda and Orange Crush are sold in 16

U.S. fluid ounce (1 U.S. pint) glass bottles. Cans are packaged in a variety of

quantities such as six packs, 12 packs and cases of 24, 36 and 360. With the

advent of energy drinks sold in eight-ounce cans in the US, some soft drinks

are now sold in similarly sized cans. It is also common for carbonated soft

drinks to be served as fountain drinks in which carbonation is added to a

concentrate immediately prior to serving.

In Europe, soft drinks are typically sold in 2, 1.5, 1 litre, 500 ml plastic or 330

ml glass bottles; aluminium cans are traditionally sized in 330 ml, although

250 ml slim cans have become popular since the introduction of canned

energy drinks and 355 ml variants of the slim cans have been introduced by

Red Bull more

recently. Cans and bottles often come in packs of six or four. Several

countries have standard recyclable packaging with a container deposit,

typically ranging from € 0.15 to 0.25. The bottles are smelted, or cleaned and

refilled; cans are crushed and sold as scrap aluminium.

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In Australia, soft drinks are usually sold in 375 ml cans or glass or plastic

bottles. Bottles are usually 390 ml, 600 ml, 1.25 or 2 litre. However, 1.5 litre

bottles have more recently been used by the the Coca-Cola Company . South

Australia is the only state to offer a container recycling scheme, recently

having lifted the deposit from 5 cents to 10 cents. This scheme is also done in

the Philippines; people usually buy glass bottles and return them in exchange

for a small amount of money.

In Canada, soft drinks are sold in cans of 236 ml, 355 ml, 473 ml, and bottles

of 591 ml, 710 ml, 1 l, 1.89 l, and 2 l. The odd sizes are due to being the

metric near-equivalents to 8, 12, 16, 20, 24 and 64 U.S. fluid ounces. This

allows bottlers to use the same-sized containers as in the U.S. market. This is

an example of a wider phenomenon in North America. Brands of more

international soft drinks such as Fanta and Red Bull are more likely to come

in round-figure capacities.

In India, soft drinks are available in 200 ml and 300 ml glass bottles, 250 ml

and 330 ml cans, and 600 ml, 1.25 l, 1.5 l and 2 l plastic bottles.

Health effect:

The consumption of sugar-sweetened soft drinks is associated with obesity

type 2 diabetes, dental cavities, and low nutrient levels.[11] Experimental

studies tend to support a causal role for sugar-sweetened soft drinks in these

ailments,[10][11] though this is challenged by other researchers.[12][13] "Sugar-

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sweetened" includes drinks that use High-fructose corn syrup, as well as those

using sucrose.

Many soft drinks contain ingredients that are themselves sources of concern:

caffeine is linked to anxiety and sleep disruption[14] when consumed in excess,

and the health effects of high-fructose corn syrup and artificial sweeteners

remain controversial. Sodium benzoate has been investigated as a possible

cause of DNA damage and hyperactivity. Other substances have negative

health effects, but are present in such small quantities that they are unlikely to

pose any substantial health risk. Benzene belongs to this category: the amount

of benzene in soft drinks is small enough that it is unlikely to pose a health

risk.[15]

In 1998, the Center for Science in the Public Interest published a report titled

Liquid Candy: How Soft Drinks are Harming Americans' Health. The report

examined statistics relating to the soaring consumption of soft drinks,

particularly by children, and the consequent health ramifications, including

tooth decay, nutritional depletion, obesity, type-2 (formerly known as "adult-

onset") diabetes, and heart disease. It also reviewed soft drink marketing and

made various recommendations aimed at reducing soft drink consumption.[16]

There have been a handful of published reports describing individuals with

severe hypokalemia (low potassium levels) related to chronic extreme

consumption (4-10 L/day) of colas.[34]

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Nutritional value:

Unless fortified, they also contain little to no vitamins, minerals, fiber,

protein, or other essential nutrients. Soft drinks may also displace other

Healthier choices in people's diets, such as water, milk, fruit juice,[37] and

vegetable juice.

Soft drinks in India:

Euromonitor International's Soft Drinks in India market report offers a

comprehensive guide to the size and shape of the market at a national level. It

provides the latest retail sales data, allowing you to identify the sectors

driving growth. It identifies the leading companies, the leading brands and

offers strategic analysis of key factors influencing the market - be they new

product developments, packaging innovations, economic/lifestyle influences,

distribution or pricing issues. Forecasts illustrate how the market is set to

change.

Buy online to access strategic market analysis and an interactive statistical

database of volume and value market sizes including on-trade and off-trade,

company and brand shares, distribution and pricing data.

Soft drinks witnesses’ healthy growth in India

Soft drinks recorded robust double digit off-trade value growth in 2009,

which was higher than that witnessed in 2008. Bottled water and

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fruit/vegetable juice continued to grow strongly as more consumers turned to

these products in the search of healthier options. Carbonates also witnessed

good sales growth as the long summer helped to fuel sales. Energy drinks has

witnessed a slowdown in sales growth as its is a premium priced product type

and therefore not considered a necessity. Importantly, more consumers

refrained from spending on non-essential items in the wake of the economic

downturn.

Manufacturers diversify on a health and wellness platform

Manufacturers continued to focus on health and wellness products in 2009,

introducing green tea versions of powder concentrates and RTD tea. There

were also a number of launches in terms of new products and flavours in

fruit/vegetable juice. The only new product launch in carbonates was Grappo

Fizz by Parle Agro Pvt Ltd. Non-cola carbonates performed very well as these

products are perceived by consumers to be less of a health threat than cola

carbonates. Even in niche categories like energy drinks, sugar-free versions

were introduced as manufacturers try to attract health conscious and diabetic

consumers.

Coca-Cola India continues to lead soft drinks

Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009, followed by

PepsiCo India Holdings Pvt Ltd in off-trade value terms. The launch of

Nimbooz by 7-Up (PepsiCo India) helped the company retain its

leading position in the terms of off-trade value sales. Coca-Cola India and

PepsiCo India continued to invest in soft drinks in India. However, domestic

players such as Parle Agro, Parle Bisleri Ltd and Dabur India Ltd continued

15

to provide tough competition to the leading multinationals. One competitive

edge that domestic players hold is that unlike Coca-Cola India and PepsiCo

India the bulk of their business does not come from carbonates, but instead

from fruit/vegetable juice and bottled water, which are recording much more

dynamic volume and value growth. Thus, while the leading multinationals

retained their leading positions in off-trade value terms, they continued to

record slight off-trade value share reductions in 2009, while these leading

domestic players grew their shares.

Marginal slowdown in supermarkets/hypermarkets

The growth in supermarkets/hypermarkets boosted the soft drinks industry

over much of the review period. However, due to the economic downturn, the

off-trade volume share of supermarkets/hypermarkets decreased in 2009. This

in turn affected some of the more niche and premium product types like

energy drinks and reconstituted 100% juice which enjoyed high visibility

through this distribution channels. However, this trend is not expected to

continue as the economy recovers since consumers will revert to their

previous shopping patterns.

Soft drinks is expected to record healthy sales growth in the forecast period

Soft drinks is expected to witness a healthy double-digit total volume CAGR

growth over the forecast period. As consumer awareness and understanding of

the variety of soft drinks increases and as manufacturers continue to be

innovative, soft drinks is expected to perform well. Products on the health and

wellness platform and niche categories can expect to see good sales growth in

the forecast period.

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COMPLEXITES IN THE SOFT DRINK MARKET

The soft drinks business is most complicated because of the following

reasons.

1. At the most basic level, it is two way business. when consumer buys a

cigarette or soaps then ends the marketing story, but soft drink bottle

collected back.

2. It is a seasonal business and has peak sales in six months a year.

3. Value addition by way of chilling bottles done by the retailer.

4. It is impulse buying consumer loyalty is uncertain.

17

COMPANY PROFILE

THE COCA-COLA COMPANY

History:

The Coca-Cola Company traces its beginning to 1886, when an

Atlanta, Georgia pharmacist, Dr. John Pemberton, began to produce coca-cola

syrup for sale in the fountain drink. However, with the exemption of an

independent bottling operation established in 1894 in Viking,Mississippi,the

history of large scale bottling did not begin until 1899 when two Chattanooga

businessmen , Joseph B. Whitehead and Benjamin F. Thomas ,secured the

executive rights to bottle and sell coca cola for most of the United States from

the Coca-cola company.

BUSINESS:

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Coca-cola enterprises are in the business of Marketing, Producing and

Distributing liquid non-alcoholic refreshments to customers in their franchise

tern tones. In 1994 they distributed approximately 1.7 billion equivalent cases

of the product throughout their territories, which comprise of 38 states and the

District of Columbia in the United States. Their territory also extended too

many foreign countries.

The Coca-cola Enterprise and the Coca-Cola Company are in business

partnership. The Coca-Cola Company develops the product; while as a bottler

the Coca-cola Enterprise combines the product concentrates with other

ingredients and packages the beverages in bottles, cans and fountain

containers.

MANAGEMENT PHILOSOPHY:

CORPORATE AREA

The major concept of management philosophy is to remain in the

beverage industry and not diversify into other areas. The management

believes in investing in non capital-intensive areas. In fact, the beverage

industry requires little capital, and produces maximum returns. The returns

from the foreign markets are tapped to the most.

FINANCIAL AREA

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The corporate objectives are to increase the shareowners value. The

management believes that in increasing the shareholders value it requires

consistent growth in financial results complemented by effective use of the

cash flow.

MARKETING AREA

Here the management is committed to superior market place execution.

This is achieved by decentralized operating structure that places the

responsibilities, authority and the accountability as close to the customer and

consumer as possible.

THE BRAND

Coca-cola consistently ranks in the world’s most valuable brands. The

brand value is about $39billion.This is the greatest heritage of the company.

As far as the branch management concerned, we find that Coca-cola ranks

itself as the third only after Microsoft and Louis Vinton.

COCA-COLA INDIA

Coca-cola returned to India after 16 years, in 1993.The brand

promotion was in between 1994-96.The bottling acquisition occurred in

between 1997-99.Its quest for profitability started from 2000 onwards. In

India Coke have its concentrate plants at pune producing 10 brands. Its

company-owned bottling operations are at six operating regions, 29 operating

20

areas with 26 plants, 10 green fields, and 3000 associates. It enjoys a business

of over Rs.3000 crores in India.

ANDHRA PRADESH REGION

AP has merged as the single biggest state in terms of overall CSD sales

volume as well as in terms of manufacturing facilities. Up to 18-20 percent of

the company’s sales volumes are from AP.

Coca-Cola now in total consists of five operating locations for CSD

brands and KINLEY packed water at Moula-Ali, Vijayawada, Srikalahasti

and Vishakapatnam having a turnover of over 750 crores with 3 plants, 2

Green fields and 1500 associates. The company also has two contract packers

for its water business.

Thumps-Up now has a leading position in CSD market in AP, with a

market share of nearly 50percent.All Coca-Cola`s CSD brands put together

now accounted for 75 percent of the overall CSD market.

INDIAN BRANDS:

For the local market in India coke has in addition the following

brands:

COCA-COLA:

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It is the world’s favourite drink, the world’s most valuable brand. Coca-Cola

has truly remarkable heritage. From a humble beginning in 1886, it is now the

flagship brand of the largest manufacturer, marketer, and distributor of non-

alcoholic beverages in the world.

THUMPS-UP:

Thumps-Up is the leading carbonated soft drink and most

trusted brand in India. Originally introduces in 1977, Thumps-

Up was acquired by the Coca-Cola company in 1993. Thumps-

Up is known for its strong, Fizzy taste and its confident, mature

and uniquely masculine attitude. This brand clearly seeks to

separate the men from the boys.

LIMCA:

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Lime n Lemony Limca, the drink of that can cast a tangy

refreshing spell on any one, anywhere. Born in 1977, Limca has

been the original thirst choice, of millions of consumers for over

3 decades.

FANTA:

The orange drink of the Coca-Cola Company, lies seen as

one of the favourite drinks since 1940` s.Fanta entered the

Indian market in the year.

SPRITE :

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Worldwide sprie is ranked as the No.4 soft drink and is

sold in more than 190 countries. In India Sprite was launched in

year 1999 and today it has grown to one of fastest growing soft

drinks, leading the clear line category.

DIET COKE:

Was launched in1982 to

target the market of the light products.

THE NON-CARBONATED MARKET:

1. MINUTE MAID PULPY ORANGE:

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Offers frozen concentrated fruit juice launched in 1988.

2. MAAZA :

Maaza was launched in 1976 here was a drink that offered

the same real taste of fruit juice and was available through out

the year. In 1993 maaza was acquired by Coca-Cola India,

maaza currently dominated the fruit drink.

3. Nimbu Fresh:

Recently launched lemon flavoured drink .

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3. KINLEY:

Packaged drinking water.

INDIAN PRODUCT RANGE:

Cola –Cola:

Glass: 200ml.300ml.500ml.1000ml

PET bottle: 500ml, 1.25litres, 2 liters, 2.25 lit, 500ml+100ml

CAN: 330ml

Fountain: various sizes

Thums-Up:

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Glass: 200ml.300ml.500ml.1000ml

PET bottle: 500ml, 1.25 liters, 2 liters, 2.25 lit, 500ml+100ml

CAN: 330ml

Fountain: various sizes

Sprite:

Glass: 200ml.300ml.

PET bottle: 500ml, 1.25 liters, 2 liters, 2.25 lit, 500ml+100ml

CAN: 330ml

Fountain: various sizes

Fanta :

Glass: 200ml.300ml.

PET bottle: 500ml, 1.25 liters, 2 liters, 2.25 lit, 500ml+100ml

CAN: 330ml

Fountain: various sizes

Limca :

Glass: 200ml.300ml.

PET bottle: 500ml, 1.25 ltr, 2 liters, 2.25 ltr, 500ml+100ml

CAN: 330ml

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Fountain: various sizes

Minute Maid Pulpy Orange:

Available in 3 PET packages: 400ml, 1 liters and 1.25 liters

Maaza:

PET: 250ml, 600ml, 1.2 ltr,

RGB: 200ml, 250 ml

Pocket maaza : 200ml.

Kinley :

PET: 500ml, 1000ml, 2000 ml

Nimbu fresh:

Available in 2 packages: 400ml and 1000ml

Social and environmental responsibility

Company guiding vision

Coca-Cola re entered India in 1993. The vision of the company is

to lead beverage revolution in the world and provide it’s consumer

quality beverages at affordable price. As on June 2007, Company has

65 manufacturing locations across 18 states of the country

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The company has one single environmental system, eKO system,

implemented at all its operations across the world. The eKO system is a

tool that integrates environment management with business planning

cycle.

The eKO system primarily comprises of two main facets namely:

Environment

Occupational Safety and Health (OSH)

Both the facets are aligned with international management system standards,

ISO 14001 for Environment Management and OSHAS 18001 for Safety

Management.

 

As on June 2007, 32 manufacturing units are certified to ISO 14001 & 10

units are certified to OHSAS 18001 Standards.

At the core of The Coca-Cola Environmental Management System are five

values that affirm the responsibilities of The Coca-Cola Company and serve

as guidelines for our business partners around the world. Each of these values

is supported by specific requirements and practices that govern our daily

operations and are fundamental to achieving results consistent with

environmental leadership. Our five values are:

Commitment

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Compliance

Minimizing Impact Maximising Opportunity

Accountability

Informing Stakeholders

Some of the prime environmental considerations followed in business

decisions are:

Environmental due diligence before acquiring land.

Environmental impact assessment before commencing operations.

Ground water and environmental surveys before selecting sites.

Diligent compliance with all regulatory environmental requirements.

Ban on purchase of refrigeration equipment containing CFCs (known

to be Ozone depleting).

Installation of Effluent treatment plant at each manufacturing locations.

Separate collection and treatment domestic and industrial effluent as

per company OR Local standard.

Separate discharge of industrial, domestic and storm water to prevent

storm water pollution.

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REVIEW OF LITERATURE MEANING OF RETAILER:

Meaning of Retailer is to cut a piece off or to break bulk

Retailer is the one who does sale of goods or merchandise from a fixed

location, such as a department store, or a convenience store ,in small or

individual lots for direct consumption by the purchaser. Retailing may include

subordinated services, such as delivery. Purchasers may be individuals or

businesses.

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Retailing: Also Known As: Merchant is

One who sells goods or commodities directly to consumers? These items are

purchased from the manufacturer or wholesaler and sold to the end user at a

marked up price.

Independent Retailer:An independent retailer is one who builds his/her business from the ground

up. From the business planning stage to opening day, the independent retail

owner does it all. He/she may hire consultants, staff and others to assist in

the business endeavor. The opportunities are endless.

Advantages:There are no restrictions on whom, how or where an entrepreneur should

set up his/her business. The freedom to do what one wants to do is the

biggest advantage in this form of business. It can be extremely fulfilling.

Retailing includes all the activities involved in selling goods and

services directly to final consumers for personal, non-business use. A retailer

or retail store is any business enterprise whose sales volume comes primarily

from retailing.

Retailing consists of the sale of goods or merchandise from a fixed

location, such as a department store, boutique or kiosk, or by mail, in small

or individual lots for direct consumption by the purchaser.[1] Retailing may

include subordinated services, such as delivery. Purchasers may be

individuals or businesses. In commerce, a "retailer" buys goods or products

in large quantities from manufacturers or importers, either directly or

through a wholesaler, and then sells smaller quantities to the end-user.

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Types of Retail Outlets:

A marketplace is a location where goods and services are exchanged. The

traditional market square is a city square where traders set up stalls and

buyers browse the merchandise. This kind of market is very old, and

countless such markets are still in operation around the whole world.

In some parts of the world, the retail business is still dominated by small

family-run stores, but this market is increasingly being taken over by large

retail chains.

Retail is usually classified by type of products as follows: Food products

Soft goods - clothing, apparel, and other fabrics.

Hard goods ("hard line retailers") - appliances, electronics,

furniture, sporting goods, etc.

There are the following types of retailers by marketing strategy: Supermarkets - sell mostly food products;

Department stores - very large stores offering a huge assortment

of "soft" and "hard goods";

Discount stores - tend to offer a wide array of products and

services, but they compete mainly on price;

General merchandise store - a hybrid between a department

store and discount store;

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Warehouse store - low-cost, often high-quantity goods piled on

pallets or steel shelves; warehouse clubs charge a membership fee;

Variety store or "dollar store" - extremely low-cost goods, with

limited selection;

Demographic

Some stores take a no frills approach, while others are "mid-

range" or "high end", depending on what income level they target. Other

types of retail store include:

General store - a store which sells most goods needed, typically in

a rural area;

Convenience store - a small store often with extended hours,

stocking everyday or roadside items;

Big-box stores encompass larger department, discount, general

merchandise, and warehouse stores.

NEED OF RETAILER:

Retailer is very much needed as he involves in the set of business

activities that adds value to the products and services sold to consumers

for their personal or family use

.

34

IMPORTANCE OF RETAILER

Providing an assortment of products and services.

Breaking bulk.

Holding inventory.

Providing services.

By providing the assortments of products, breaking bulk, holding

inventory and providing services, retailers increase the value consumers

receive from their products and services.

OTHERS

Retailing processSuccessful retailers know that counting on past success to fuel future growth

does not work. Companies that continue to gain market share are evolving

with the changing marketplace and expanding into new areas. Continuous

improvement is the path to competitive advantage. But many of these

change initiatives are fraught with danger. New software solutions can

provide great returns but can also cost millions of dollars and system

implementations always contain some semblance of risk. Has the collective

knowledge of the more experienced members of the team been distilled into

an easy to follow step-by-step formula for success?

35

Are new merchants and replenishment buyers armed with best practice

process maps to ensure they can more quickly deliver the results of a

seasoned employee?

Are you measuring performance insuring consistent use of best

practices across the enterprise?

If you answered ‘No’ to any of these questions, you have found an

opportunity to achieve Process Excellence and drive cost savings and

revenue growth without lengthy and potentially risky system change efforts.

36

Process Excellence can be achieved by following four steps:1. Process Mapping

2. Process Improvement

3. Change Management

4. Success Measurement

Process MappingProcess Excellence begins with understanding the current processes used at

your company. Through interviews and observation, the steps currently taken

to accomplish functional goals are documented. This Means understanding

not only the published standards, but learning how these standards are

individually applied across teams? An accurate understanding of this variation

often uncovers the largest opportunities for improvement. Consistency – not

creation of new processes – can drive the performance of all teammates to the

high levels of the best performers.

Process Improvement

Process improvement is defined as identifying gaps

between the current processes and the desired process and modifying the

current process to more efficiently achieve the desired outcome. It is a more

subtle and less drastic cousin to process re-engineering; t. Once functional

representatives and project sponsors agree on the desired process, gaps are

identified on the Current process map. These gaps are activities, decisions or

resources that must change to better match with the desired process flow.

The identification of these activities needing change leads us to change

management, the next step in the Process Excellence process. Change

37

Management Documentation of an improved process or executive

recognition of inconsistent execution in itself does not improve results. Real

people need to make changes to their workday efforts. Even the best

designed process provides little benefit when the team implementing the

process chooses to take a different path.

Success Measurement

Identifying and tracking key metrics serves two purposes. Measurement

of key activities quantifies the benefit realized by the change and ensures the

improved process is being followed. First, the benefits of the change can be

measured. This helps to justify the time and expense incurred to effect the

change. Identify metrics that signify successful completion of the process

and cannot be attributed to other change efforts.

While this is often difficult, the ability to attribute success solely to the

Process Excellence effort enables you to claim the entire benefit. Other

higher level metrics such as sales or in stock % are easier to measure, but

their improvement often is a factor of several interrelated efforts. Second,

you can ensure that the processes remain consistently applied by all team

members.

38

RESEARCH METHODOLOGY

Research is a growing need in any organization of the present world. It is

helpful in identifying the consumer needs and wants so as to launch a product

or to bring about improvements in the existing products. This is done to gain

competitive edge over others. Success of the research depends upon the

methodology adopted. The study was based on descriptive research.

The research methodology deals with the

39

1. Data collection

2. Research technique

3. Sampling methods

4. Analysis and Interpretation of research

work.

4.1 DATA COLLECTION:

Data is collected from two sources:

1. Primary Data

2. Secondary Data

1.Primary Data :

a. Primary Data is collected by using Depth Interviews with the

consumers of the product in the market and also with a few

Retailers.

b. This helped in finding out the factors for the Research problem.

c. Structured Questionnaire is used as the major tool for primary

data collection.

d. The Questionnaire consists of 13 Questions in total.

2. Secondary Data:

o The Secondary data consists of information that already exists

somewhere having been collected for another purpose and

40

researcher begins the research work by first going through the

secondary data.

o Here Secondary data is collected from the COMPANY,

Company’s website.

RESEARCH DESIGN:

A research design is purely and simply the frame work of plan for a

study the guides the collection and analysis of data. It is a blue print for a

complete study. It resembles the architects blue print map for a constructing a

house.

DESCRIPTIVE REASEARCH DESIGN

A descriptive research is undertaken in order to

ascertain and be able to describe the characteristics of the variable of interest

in a situation. Descriptive research is also undertaken to understand the

characteristics of organisations that follow certain common practices. The

goal of a descriptive research is to offer to the researcher a profile or to

describe relevant aspects of the phenomena of interest from an individual,

organisational, industry-oriented, or other perspective.

41

4.3 SAMPLING TECHNIQUE

A sample is a subset of population and it comprises some members

selected from it. sampling is the process of selecting a sufficient number of

elements from the population.

Sample survey:

A survey which is carried out using a sampling method, i.e., in which a

proportion only and not the whole population, is surveyed.

Sampling designs:

There are two types of sampling designs. They are probability and non-

probability sampling.

Probability sampling: In probability sampling the elements in the

population have some known chance or probability of being selected as

sample subjects.

Non- probability sampling: The elements in the population do not

have any probability attached to their being chosen as sample subjects.

This means that the findings from the study of the sample cannot be

confidently generalized to the population.

Population: TIRUPATI

Sample Size: 120

The sample size used is 120 but 4 of them has incompletely responded so the

total sample size is 116.

The Sampling Technique that is used in the project is:

Convenience sampling:

42

It refers to the collection of information from members of the

population who are conveniently available to provide it. The most easily

accessible members are chosen as subjects. Convenience sampling is the best

way of getting some basic information quickly and efficiently.

DATA ANALYSIS TOOLS

The tools which are to be used for the analysis are as follows:

Percentage analysis method:

Percentage is used in making cooperation between two or more

series of data. It is used to describe relationships. It can be used

to compare the relative terms of distribution of two or more

series of data.

Percentage analysis= (number of responses/total no of

responses)*100

LIMITATIONS OF THE STUDY

Time duration for the study was limited to 45 days.

Some of the respondents are refused to fill the questionnaires

completely.

As Some of the retailers refused to give the information it has been

taken the sample of size 200 retailers only

43

The study was restricted to SRIKALAHASTI REGION ONLY

The information given by the respondents may be biased.

44

Percentage

2529

14.5

31.5

0

5

10

15

20

25

30

35

0 to 2 2 to 5 5 to 10 10 above

Percentage

DATA ANALYSIS &INTERPRETATION Experience in dealing with the soft drinksTable 4.1:

Years of experience

No. of respondents

Percentage

0-2 50 25

2-5 58 29

5-10 59 14.5

10 above 63 31.5

Total 200 100

yearsInferences:

From the above graph its cleared that 25% of the respondents have 0-2 years experience, 29% of the respondents have 2-5 years experience, 14.5% of the respondents having 5-10 years experience, 31.5% of the respondents have above 10 years experience dealt in soft drinks.

45

Status of the outlet

Table-4.2:Status No. of

respondentsPercentage

Monopoly 58 29

Free enterprise

142 71

Total 200 100

Inference:From the above graph it is found that 29% of the respondents are

monopolistic, 71% of the respondents are having free enterprise.

46

Percentage

29

71

01020304050607080

Monopoly Free enterprise

Percentage

Percentage

37.5

46

14.5

2

0

10

20

30

40

50

0 to 2 2 to 5 5 to 10 Above 10

Percentage

Average sales per day Table-4.3:

Daily average sale(cases)

No. of respondents

Percentage

0 to 2 75 37.5

2 to 5 92 46

5 to 10 29 14.5

Above 10 4 2

Total 200 100

No. of cases

Inference: From the above graph it is found that 37.5% of the respondents sales is 0-2 cases per day, 46% of the respondents sales is 2-5 cases per day,14.5% of the

47

Percentage

77.5

12 7 3.50

20

40

60

80

100

Daily Alternatedays

Twice in aweek

Once in aweek

Percentage

respondents sales is 5-10 cases per day, 2% of the respondents are sale above 10 cases per da

Frequency of supplier visit

Table-4.4: Supplier visit

No. of respondents

Percentage

Daily 155 77.5

Alternate days

24 12

Twice in a week

14 7

Once in a week

7 3.5

Total 200 100

Inference:From the above graph it is cleared that 77.5% of the respondents were

said daily visit,12% of the respondents were said alternate days visit,7% of

48

Percentage

96

3.5 0.5 00

20

40

60

80

100

120

Daily Alternatedays

Twice in aweek

Once in aweek

Percentage

the respondents were said twice in a week, 3.5% of the respondents were said once in a week.

Expected visiting frequency by supplier.Table -4.5:

Supplier visit

No. of respondents

Percentage

Daily 122 96

Alternate days

7 3.5

Twice in a week

1 0.5

Once in a week

- -

Total 200 100

Inference:

49

Percentage

55

19 179

0

10

20

30

40

50

60

Thums up Limca Sprite Maaza

Percentage

From the above graph it is found that 96% of the respondents are expected visiting daily,3.5% of the respondents are expected visiting in alternate day,0.5% of the respondents are expected visiting twice in a day.

Fast moving brand of coca cola drinks.Table 4.6:

Inference:From the above graph it is found that Thums up is the fastest moving

brand with 55% followed by Limca which is 19%, Sprite which is17%, Maaza is only 09%.

Brands No. of respondents

Percentage

Thums up 110 55

Limca 38 19

Sprite 34 17

Maaza 18 9

Total 200 100

50

Percentage

82

135 0

0

20

40

60

80

100

200(ml) 300(ml) 500(ml) 1000(ml)

Percentage

Most preferred quantity (pack) by consumer.

Table-4.7:

Pack (ml) No. of respondents

Percentage

200 164 82

300 26 13

500 10 5

1000 _ _

Total 200 100

Inference:

51

Percentage

51.545.5

3 00

10

20

30

40

50

60

Con

sum

erpr

efer

ence

Bra

ndim

age

Pro

mpt

supp

ly

Pro

per

mar

gine

s

Percentage

From the above graph it is cleat that 82% of the respondents are prefering 200ml pack. 13% of the respondents preferring 300ml pack. 5% of the respondents are prefering 500ml.

Influencing factors on sales of the coca cola products.

Table-4.8: Factor No. of

respondentsPercentage

Consumer preference

103 51.5

Brand image

91 45.5

Prompt supply

6 3

Proper margins

_ 0

Total 200 100

I

52

Percentage

22

39

1 5 213

01020304050

Brand

imag

e

Quality

Pricing

Adver

tisem

ents

Thirsty

Ref

resh

men

t

Percentage

inferences:From the above graph it is cleared that 51.5% of the respondents are influenced by consumer preference, 45.5% of the respondents influenced by brand image. 3% of the respondents are influenced by prompt supply.

Factors influencing the consumer to purchase coca cola products.Table-4.9:

Factors No. of respondents

Percentage

Brand image 44 22

Quality 78 39

Pricing 2 1

Advertisements 10 5

Thirsty 40 2

Refreshment 26 13

Total 200 100

Inferences:

53

Percentage

78

0 1

21

0

20

40

60

80

100

Productitself

Price ofthe

product

Quality ofthe

product

Brandimage

Percentage

From the above graph it is found that 22% of the respondents are influenced by brand image. 39% of the respondents are influenced by quality. 1% of the respondents are influenced by pricing, 25% of the respondents are influenced by thirsty and 13% of the respondents are influenced by refreshment. Influence of advertisement.Table 4.10:

Ads influence

No. of respondents

Percentage

Product itself

156 78

Price of the product

- 0

Quality of the product

2 1

Brand image

42 21

total 200 100

Inference:

54

Percentage

11

75

1.512.5

01020304050607080

News par

ers

Televisi

on

Mag

azine

s

hord

ings

Percentage

From the above graph it is clear that 78% of the respondents are ads influenced by product itself ,1% of the respondents are ads influnced by quality of the product.21% of the respondents are influenced by ads bran image.

Media preference by respondents.Table4. 11:

Media No. of respondents

Percentage

News Papers

22 11

Television 150 75

Magazines 3 1.5

Hoardings 25 12.5

Total 200 100

Inference:

55

percentage

54

46

42

44

46

48

50

52

54

56

yes no

percentage

From the above graph it is cleared that 11% of the respondents are come across ads by news papers ,75% of the respondents are come across ads by television,3% of the respondents are come across ads by magazines ,12.5% of the respondents are come across ads by hoardings.

Ads impact on sales volumeTable 4.12

category No. of respondents

percentage

Yes 108 54

No 92 46

Total 200 100

\

Inference:

56

percentage

95

5

0

20

40

60

80

100

yes no

percentage

From the above graph it is found that 54% of the respondents are agree with ads impact on sales volume,46% of the respondents are agree with ads impact on sales.

Consumers’ expectations about offers.

Table 4.13:

category No. of respondents

percentage

Yes 190 95

No 10 5

Total 200 100

Inference:

57

percentage

88.5

11.5

0

20

40

60

80

100

yes no

percentage

From the above graph it is cleared that 95% of the respondents are expecting consumer offers, 5% of the respondents are not expecting consumer offers.

Space for the display to increase the sales.Table4.14:

category No. of respondents

percentage

Yes 177 88.5

No 23 11.5

Total 200 100

Inference:

58

percentage

32.5

67.5

01020304050607080

yes no

percentage

From the above graph it is clear that 88.5% of the respondents are accepted that display increases the sales, 11.5% of the respondents are not accepting that display increase the sales.

Company providing the chilling equipment is sufficient.Table4.15:

category No. of respondents

percentage

Yes 65 32.5

No 135 67.5

Total 200 100

Inference:

59

percentage

27.5

72.5

01020304050607080

yes no

percentage

From the above graph it is found that 32.5% of the respondents are chilling equipment is sufficient,67.5% of the respondents are chilling equipment is not sufficient.

Merchandising materials that boost up sales.

Table4.16:

category No. of respondents

percentage

Yes 55 27.5

No 145 72.5

Total 200 100

60

percentage

84

16

0

20

40

60

80

100

yes no

percentage

Inference:From the above graph it is cleared that 27.5% of the respondents are

agreed the merchandising materials boost up sales, 72.5% of the respondents are disagree the merchandising materials boost up sales.

Satisfaction with company services.

Table4.17:

category No. of respondents

percentage

Yes 168 84

No 32 16

Total 200 100

61

percentage

54.5

27

18.5

0

10

20

30

40

50

60

highly satisfied satisfied dissatisfied

percentage

Inference:From the above graph it is found that 84% of the respondents are

satisfied with company services,16% of the respondents are dissatisfied with company services.

Supply of stocks.

Table4.18:Category No. of

respondentspercentage

03 109 27

02 54 27

01 37 18.5

Total 200 100

62

percentage

0

52.547.5

0

10

20

30

40

50

60

highly satisfied satisfied dissatisfied

percentage

Inference:From the above graph it is cleared that 54.5% of the respondents are

highly satisfied of supply of stocks, 27% of the respondents are satisfied of supply of stocks. 18.5% of the respondents are dissatisfied.

Opinion on margins provided.Table4.19:

category No. of respondents

percentage

03 - -

02 105 52.5

01 95 47.5

Total 200 100

63

percentage

0

28.5

71.5

0

10

20

30

40

50

60

70

80

highly satisfied satisfied dissatisfied

percentage

Inference:From the above graph it is cleared that 52.5% of the respondents are

satisfy the margins,47.5% of the respondents are dissatisfied the margins.

Company personel visit.Table4.20:

category No. of respondents

percentage

03 - 0

02 57 28.5

01 143 71.5

Total 200 100

64

Inference:From the above graph it is cleared that 28.5% of the respondents are satisfy company personal visit, 71.5% of the respondents are dissatisfy company personal visit.

FINDINGS

Retailers have experience in dealing with soft drinks. Most of the retailers are free-enterprise with their business dealing

in soft drinks. Most of the retailers sell 2to5 cases of soft drinks per day. Most of the retailers agreed that supplier visit every day. Fast moving brand among coca cola drinks is THUMS UP

following by LIMCA. Most of the consumers preferred 200ml quantity pack. Consumer preference is the first influencing factor which helps in

improving the sales and the next factor is Brand image. The coca cola product itself acts as a key promoting factor. coca cola is promoted by the media of television. Fifty percent of the retailers are said that consumers are expecting

most offers from coca cola. Most of retailers have no chilling (cooler) equipment. Merchandising material from company may not increase the sales

of soft drinks. The most of the retailers are dissatisfied with trade schemes. There is dissatisfaction among 47% of retailers with margins. Though most of the retailers satisfied with the company services

still 15% of retailers are not satisfied.

65

SUGGESTIONS

Company should have a plan to promote more quantity of sales by 5 to 10 cases per day.

It is better to have schedule for every retailer is being visited by company sales personal for improving operating efficiency.

Company is better to have quick replacement of damaged bottles. It helps retailers to hike their satisfaction.

Retailers have been in need of chilling equipment. so, it is advised to have plan to supply for more retailers.

Company must think about to provide more offers tom retailers instead of customers.

66

CONCLUSION:

Retailer is one who builds his business from the ground stage to top level. The retailer’s satisfaction is the main aspect which helps the company to improve its market position.

HCCBPL Company should have proper plan and schedule while dealing with Retailers by providing proper market equipments and different offers to attract more number of Retailers to improve their Business, which leads to the development of the company and also satisfaction to the Retailers.

67

A STUDY ON THE RETAILER SATISFACTION FOR SOFT DRINKS WITH REFERENCE TO HINDUSTAN COCA COLA BEVERAGES PVT. LTD AT SRIKALAHASTI.PROJECT GUIDE: Miss. M.Haritha .,M.B.A Name:M.Dora Raju

(Roll.No:099L1E0009)

Questionnaire

1. Name of the respondent :________________________

2. Name & address of the Outlet :________________________

3. Since how many years you are dealing with the soft drin [ ]

A. 0-2 yrs B. 2-5 yrs C. 5-10 yrs D. above 10yrs

4. Stands of the outlet? [ ]

A. Monopoly B. Free enterprises

5. What is the daily average sale? [ ]

A. 0-2 cases B. 2-5 cases C. 5-10 cases D. above 10

cases

68

6. When the supplier does visit your shop? [ ]

A. Daily B. Alternative days

C. Twice in week D. Once in a week

7. When do you want the supplier to visit your shop [ ]

A. Daily B. Alternative days

C. Twice in week D. Once in a week

8. What is the fast moving brand? [ ]

A. Thums up B. Limca C. Sprite D. Maaza

E. Fanta F. Pepsi G. Others

9. What is the most preferred pack? [ ]

A. 200ml B.300ml C. 500ml

D.1000ml

10. What factors influencing you to sell the Coca-cola products? [ ]

A. Consumer preference B. Brand image

C. Prompt supply D. Proper margins

69

11. What factors influencing the consumer to purchase the Coca-cola

products? [ ]

A. Brand image B. Quality

C. Pricing D. Advertisements

E. Thirsty F. Refreshment

12. 03. Highly satisfied 02. Satisfied 01. Dissatisfied [ ]

A. Supply of stocks B. Margins

C. Trade schemes D. Company personal visit

13. Influence of advertisements? [ ]

A. Product it self B. Price of the product

C. Quality of the product D. Brand image

14. In which media do you come across the Ad’s? [ ]

A. News papers B. Television C. Magazines D. Hoardings

15. Do you really feel Ad’s making an impact on sales volume? [ ]

A. Yes B. No

16. Do you think more consumer’s offers to be introduced? [ ]

A. Yes B. No

70

17. Will you allocate space for the display of Coca-cola products to increase

the sales volume? [ ]

A. Yes B. No

18. Is the chilling equipment provided by the company is sufficient? [ ]

A. Yes B. No

19. Is the company providing the merchandising material in proper time to

boost up your sales? [ ]

A. Yes B. No

20. Are you satisfied overall with the company services? [ ]

A. Yes B. No

21. Suggestions / Feed Back: ____________________________

71

BIBLIOGRAPHY

1. PHILIP KOTLER “ MARKETING MANAGEMENT “ the millennium

edition, New Delhi, Prentice- Hall India, Tenth Edition.

2. C.R KOTHARI “QUANTITATIVE TECHNIQUES“, New Delhi,

Vikas publishing House Pvt.Ltd., 1978, Third Edition.

3. C.R KOTHARI “RESEARCH METHODOLOGY”, New Delhi

Vishwa prakashan, 2000, Second Edition.

72

4. S.P GUPTHA “STATISTICAL METHODS” Sultan chand & Co., New

Delhi.

WEBSITES

www.cococola.com

www.google.com

73