oppurturtunies of 300ml can in e&d 2 market in ernakulam

7/30/2019 Oppurturtunies of 300ml can in E&D 2 Market in Ernakulam

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A Report

On

The study of Opportunities of 300 ml cans in Eat and Dine 2 Market in Ernakulam

For

The Hindustan Coca cola Private Ltd

Submitted To

Amity University

In partial fulfillment of the Master of Business Administration Under the guidance of

Ashish pillai

By

Vishnu B Shenoy

Reg No:A3110191101025

Batch : 2011-2013

AMITYGLOBALBUSINESSSCHOOL

RAJAJI ROADKOCHI-35


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AMITY GLOBAL BUSINESS SCHOOL

KOCHI

CERTIFICATE

This is to certify that the project entitled Opportunities of 300ml can in Eat and dine 2 Markethas

been successfully carried out by Ms Vishnu B Shenoy in partial fulfillment of Master of Business

Administration under my guidance during academic year 2011-2013

DATE: Mr. Ashish pillai

(Internal Guide)


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AMITY GLOBAL BUSINESS SCHOOL

KOCHI

CERTIFICATE

This is to certify that the project entitled Opportunities of 300ml cans in Eat and Dine 2 Market

has been successfully carried out by Vishnu B Shenoy in partial fulfillment of Master of Business

Administration under my guidance during academic year 2011-2013

DATE: MrBijuVithayathil

(Dean)


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ACKNOWLEDGEMENT

I wish to sincerely thank HINDUSTAN COCA COLA PRIVATE LTDfor giving me this

opportunity to do my summer internship project with them. I would to like to thank Prof

BijuVithayathil, Dean, Amity Global Business School Cochin for his valuable instructions

regarding the project.

I would like to acknowledge the role of my project guide in the industry, MR

SUBHASH, Marketing Manager, panampilly nagar, kochi for his valuable assistance and

support. I would like to acknowledge the help of my project guide in the college, Prof. Ashish

pillai who inspired and guided me throughout the project. I would also like to thank whole staff

of HINDUSTAN COCA COLA, Panampilly nagar, kochi for helping me whenever I needed

their help. I like to thank my family and friends for constant support and encouragement.

Above all, I like to thank the Almighty whose grace ultimately helped me in this

endeavor of mine.


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ABSTRACT

The Coca-Cola Company is an American multinational beverage corporation and manufacturer,

retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best

known for its flagship product Coca-Cola, invented in 1886. Besides its namesake Coca-Cola

beverage, Coca-Cola currently offers more than 500 brands in over 200 countries. The company

only produces syrup concentrate which is sold to various bottlers throughout the world; in India

these rights are held with Hindustan Coco-Cola Beverages Private Limited.

This Report Details the opportunities for 300 ml CANS in Eat and Dine 2 Market undertaken by

Hindustan Coca-Cola Beverages Pvt. Ltd in Ernakulam.


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TABLE OF CONTENTS

SERIAL No. TOPIC PAGE No.

1. INTRODUCTION

1.1. Company Profile

1.2. Current Marketing Strategies

2.Direct Store Distribution (DSD) model

2.1. Benefits and Limitations

3.RESEARCH METHODOLGY

4. DATA ANALYSIS

5. FINDINGS AND RECOMMENDATIONS

6. CONCLUSION

7. BIBLIOGRAPHY

ANNEXURES


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INTRODUCTION

Company Profile:

The Coca-Cola Company entered India through its wholly owned subsidiary, Coca-Cola India

Private Limited and launched Coca-Cola in 1993 after the opening up of the Indian economy to

foreign investments in 1991. Since then its operations have grown rapidly through a model that

supports bottling operations, both company owned as well as locally owned and includes over

7,000 Indian distributors and more than 1.3 million retailers. Today, our brands are the leading

brands in most beverage segments. The Coca-Cola Companys brands in India include Coca-

Cola, Fanta Orange, Fanta Apple, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Maaza Milky

Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and Nestea Iced tea, the Georgia

Gold range of teas and coffees and Vitingo.

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola

Company namely Coca-Cola India Pvt. Ltd which manufactures and sells concentrate and

beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,

Hindustan Coca-Cola Beverages Pvt. Ltd; thirteen authorized bottling partners of The Coca-Cola

Company, who are authorized to prepare, package, sell and distribute beverages under certain

specified trademarks of The Coca-Cola Company; and an extensive distribution system

comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells

concentrate and beverage bases to authorized bottlers who are authorized to use these to produce

our portfolio of beverages. These authorized bottlers independently develop local markets and

distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other

businesses. In turn, these customers make these beverages available to consumers across India.


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Current Distribution Strategies

Now in current world there are many ways in reaching customer and also due to big competition

among various competitors the company need to improve the marketing strategies in order to

increase the customers or sales of company. At present Hindustan Coca-Cola Beverages Pvt. Ltd.

has segregated its overall marketing activities into three types. They are

1. Direct Store Distribution (DSD) modelIn this model there is no wholesaler or distributor in between company and retailers. The

company sells product directly to retailers outlets from warehouses.

2. Indirect Market modelThe company has sub-categorized this model into,Modern Trade like Reliance Fresh and

Birla group More

3 Strategic Distribution Partner (SDP) model-

Here, the company reaches out to its retailers through a local agent in each specific

area who receive commissions for carrying out the companys distribution responsibility in

remote areas.

Direct Store Distribution (DSD) model

Hindustan Coca-Cola Beverages Pvt. Ltd. employ various distribution strategies across

the nation. The most recently adopted distribution strategy is the Direct Store Distribution

Model.

There are 3 Types of DSD models, they are


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1. Eat and Dine Market 1(E and D 1)- This include Retail outlets where there is nofacilities to sit and eat include bakery, small outlets where there is no chairs and

tables for customers, this model is mostly for take away.

2. Eat and Dine Market 2 (E and D 2)- This include Retail outlets where there arefacilities for customers to sit and eat include Bars, Restaurants etc

Benefits of E and D 1

This model helps to reach out small retail outlets near roadsides and also

bakery where more people use to purchase the bakery items like cake, pastries

etc so it would increase sales.Common man usually visits small shops rather

than restaurants , so product can reach to common man too.

Can expand market.

Benefits of E and D 2

This model is most important model because middle class people

usually visits restaurants so we could reach out middle class and top

class people.In bars need of soft drinks is more along with liquor so that

we could increase the distribution or sales.There more chance of

increasing profit in this model

Limitations of E and D 1

Supply problem- There are many supply problems which include Time, place etc Damage of product More risk which include cash transactions and other problems Less profit than E and D 2 Unavailability of various products like fanta, thumps up etc when needed this may affect

sales.

Retailers personal problems


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Limitations of E and D 2

Damage problem Misusing cooler by using various liquors in cooler

Financial problems like credit facility and other problems Unavailability of various products like fanta, thumps up etc when needed this

may affect sales

Research Methodology

Objectives:

The Report details the Opportunities of 300ml CANS in EAT and DINE 2 Markets undertaken

by Hindustan Coca-Cola Beverages Pvt. Ltd and this study was done in Ernakulam. Includes

Fortkochi, vaduthala , marine drive, chittoor road, kadavanthara and palluruthy of Ernakulam

District.

Main objective of this study is to covert RGB 300ml bottles to 300ml cans and also to promote

or increase sales of 300 ml cans in Bars and Restaurants.

Main objective is to Create entry in Bars and restaurants which are not using cans and my

secondary objective is atleast to sale various products of company which include

RGB,PETBOTTLES,SODA,MINERAL WATER etc


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Sampling Design:

The sampling method for this study is convenience sampling, because it is the most ideal

technique to document the quality of products of the company. Convenience sampling is a non-

probability sampling design in which information or data for the research are gathered from the

members of the population that are conveniently accessible to the researcher.

Sample Size:

In this case, the members used for the sampling method are purchase manager ofrestaurants andbars and the sample size that is proposed for the study is 85.

Data Collection Tools

In order to ascertain the opportunities of 300ml cans under E and D 2 model, the research tool

that is being adopted are the questionnaire and schedules. A suitable questionnaire was prepared

in order to provide data regarding the sales and productivity of the companys products. It also

provides information regarding the retailers opinions of the services afforded to them by the

company and customers preferences. The questionnaire also involves comparisons between

Hindustan Coca-Cola Beverages Pvt. Ltd. and its competitors so as to determine the efficiency of

the company as against the opposition.


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DATA ANALYSIS

Preferred Soft Drink

This graph analyses most of bars and restaurants uses both coke and pepsi, secondly pepsi and

third only its coke, fourth its other soft drinks and fifth it is no soft drinks is used in some of

restaurants.


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Are customers interested in using cans?

We can analyse from this graph that about 40 are not interested in using coco-cola 300 ml cans

but about 35 are already using 300 ml cans and only 13 are interested to start using cans.


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Preferred Flavour by E&D 2 customers

We can analyse from this chart that both cola and lemon flavour are more preferred than other

single.


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Cooler used by Soft drink customers

We can analyse from this chart that most bars and restaurants use pepsi cooler about 35 num and

secondly own coolers about 28 num are used in bars and restaurants, thirdly coco-cola coolers

are used about 15 num, at last both coolers used in few bars about 5 num.


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Most preffered packs by soft drinks customer

This diagram shows most of bars and Restaurants use 300ml Rgb bottles as it is more suitable in

Bars along with liquor, secondly pet bottle and cans, thirdly they use cans, fourth all packs, fifth

pet bottle only also RGB and pet bottles, at last RGB and cans.


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SUGGESTION TO CONVERT INTO CANS

This diagram analyses that about3/4th

of Coca cola customers do not need any schemes or

promotion because it is branded soft drinks, only about 3% interested in schemes and promotions


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Do they need Marketing Material from coke?

This graph clearly shows that customers do not need and promotional materials from coca-cola

because people already know about coca cola. Only few bars and restaurants need flanges and

flexboards.


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Any Marketing Material provided by pepsi?

This diagram also shows that pepsi do not provide any marketing materials to their customers,

only about 1% they give glowsign boards to their customers.


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Promotional schemes of coke

We can analyse from this diagram that most of customers do not need any promotional schemes

from coke about 80% of customers do not need any schemes, but about 5% of customers need

other schemes such as T shirts, umbrella, caps as promotional schemes and about 1% need Menu

cards in their bars and restaurants which may look beautiful inside.


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Promotional schemes of pepsi

We can clearly Analyse that about 100% customers do not get promotional schemes from pepsi.


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Mode of Transaction of coke

From this diagram we can clearly analyse that about 50% of coca cola customers do cash

transaction and only 5% of customers use credit purchase, cash transaction is one of best way of

transaction because it has less risk to the company but credit purchase may cause more problems

the company because there chance of bad debt it may create loss to the company


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Credit period of coke

This clearly shows most customers given 11-20 days credit period, secondly 1-10 days and least

customers given 1 month period.


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Mode of Transaction of pepsi

We can clearly Analyse that about 38% of customers use cash transaction to pepsi but they give

credit to 20% customers comparing coca cola pepsi have more credit purchase customers, there

is difference of 15% between coca cola and pepsi credit customers, this may be reason that pepsi

have more customers than coca cola, but pepsi should bear more risk.


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This diagrams clearly shows the same as coca cola as majority of pepsi customers are given 11-

20 days credit period but pepsi gives 1 month credit period to 60% customers and least to 1-10

days customers .this may be another reasons for more pepsi customers as 1 month credit period

may attract more customers to buy pepsi products.


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Monthly sales of 300ml RGB bottles of coca cola

From this diagram we could analyse that most bars and restaurants purchase 11-30 300ml RGB

bottle cases per month and secondly more than 30 cases, thirdly 1-10 cases. This clearly shows

that 300ml RGB bottles are mostly used packs in Bars and Restaurants due to less rate than cans

and there is great sales for RGB bottles in bars.


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Monthly sales 0f 300ml RGB bottles of pepsi

This diagram clearly describes that as same as coke that pepsi 300ml RGB bottles are sold

around 11-30 cases monthly and secondly more than 30 cases, thirdly 1-10 cases


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Suggestions

This is most important element in my report, from this diagram purchase manager suggests that

most of them which is blue are happy with coco cola products it also includes using 300ml cans

or coca cola products, this shows there is good fortune for coca cola cans, second majority

people which is grey colored they are not interested in using 300ml cans also some are not

interested in using coca cola products too because they may use pepsi products or due to less

demand for coca cola cans, third majority people in green are interested to get more margin forcans so they get more profit, fourth majority people are not interested due to other issues like

credit problems or previous problems etc, few other people give complaints about bad supply,

some people need new schemes at last least people not happy with rate of 300ml cans.


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SWOT ANALYSIS

STRENGTHS

The brand image of Coca-Cola plays animportant role as the strength for the

company.

Better understanding of the market trendallows the company to understand and meet

timely requirements.

Cans are beautiful designed will attractcustomers to buy cans

Taste of coca cola product is strength

WEAKNESSES

Unavailability of all flavors like fanta,thumps up etc on a daily base.

Grievances faced by the retailers ondamage problems.

Less sales during off seasonEg Rainy seasons

In rare cases. Marketing developer may nocover certain routes may lead to decrease in

sales

High price for 300ml cans comparingcompetitor

Less schemes than competitors.OPPURTUNITIES

There is good scope to increase number ofoutlets.

Increase the loyalty of customers by givingthem new schemes and offers.

THREATS

Competitors may give more offers than us. New competitors cant be taken lightly. Quicker service given by competitors may

create problem.


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Findings and Recommendations

This study has helped me to find various factors which are good and bad for the coca cola

company. From this study in found that 300ml cans are having less opportunity in Bars but in

restaurants there are more chance of entry of 300ml cans. Majority of bars are not interested in

300ml cans because they are happy with 300ml RGB bottle which are more suitable in bars and

less price than cans and also in few bars I found that cans are less moving than RGB bottles but

good news for our company is that there is more chance of creating entry of cans in Restaurants

because most restaurants in fortkochi area are already using 300ml cans also they are happy with

selling cans due to more tourists come also some bars too they use cans. The bad news for our

company is we lack good supply comparing competitor and also some bars are complainingabout damaged product, most important factor is credit facility, our company provides less credit

to our customers than competitors this is one of main drawbacks. Another problem I found in

this study is most of outlets needs coolers.

I recommend the company to give more schemes and offers so that many bar and restaurants

would be interested in cans although can rate is high comparing pepsi who sell much cheaper

rate

Although it is risky I recommend company to give credit facility to customers who give more

orders

According to me 300ml can rate is high. In order to compete with competitors especially pepsi

introduce new can product with less weight about near Rs 20.

Provide small coolers to restaurants

Supply should be made good.


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CONCLUSION

I did my Internship for 2 months at Hindustan Coca-Cola Beverages Pvt. Ltd at Ernakulam. My

topic was opportunities of 300 ml cans in Eat and Dine 2 Market. During the study I visited

many bars and restaurants in Ernakulam . from this study I received many information about

coca cola products and marketing techniques of coca cola. Our company has some problems like

supply problem, credit facility , Margin problems etc I hope company could overcome the

situation and company I conclude this report by thanking all who helped me especially subhash

sir.

Thank you


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BIBLIOGRAPHY

www.coca-colaindia.comgoogle.com
http://www.coca-colaindia.com/http://www.coca-colaindia.com/http://www.coca-colaindia.com/

oppurturtunies of 300ml can in e&d 2 market in ernakulam

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