prashant ful n final projecsssssssssfinalst
TRANSCRIPT
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A
Project Report
On
Effective Planning of Distribution Network for Distributor
in Nashik City
Submitted To
University Of Pune
By
PRASHANT KACHARDAS SAMDADIYA
MBA PART- II
In Partial Fulfillment
Of
Master of Business Administration (MBA)
Through
G.H.RAISONI INSTITUTE OF MANAGEMENT AND
RESEARCH WAGHOLI, PUNE.
(2008-2009)
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TABLE OF CONTENT
SR. NO CHAPTER NAME PAGE NO
1 INTRODUCTION OF STUDY
2 COMPANY PROFILE
3 OBJECTIVE OF STUDY
4 RESEARCH METHODOLOGY
5 REVIEW OF LITERATURE
6 DATA ANALYSIS AND INTERPRETATIONS
7 OBSERVATIONS
8 SUGGESTION & CONCLUSION
10 BIBLIOGRAPHY
11 APPENDICES
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Acknowledgement
Summer project is an imperative program in the MBA curriculum. This is an
opportunity whereby the student gets hands on exposure of the practicalities involved
in the corporate. Student also gets an opportunity to test his acquired skills;
knowledge into the practical environment and learns various new concepts, which are
far away from the reach of subject books.
I take this opportunity to express my deepest sense of gratitude and regards to
Mr.DineshDhopate (ASM), Mr. C.D.Kulkarni (HR Head) for their constant
encouragement and valuable insight, guidance and facilities at all phases of the
project.
I would also thankDirector and my project guide Mr.J.K.Sharma For his valuable
guidance, inspiration and encouragement.
Lastly I would like to take this opportunity to thank all those who criticized me from
time to time regarding my approach towards the project as their criticism acted as a
catalyst for my zeal to succeed.
SAMDADIYA PRASHANT KACHARDAS.
MBA-II (Marketing)
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DECLARATION
I, undersigned, Mr. Prashant Samdadiya student of MBA
semester III from G.H.RAISONI Institute of Management & Research,
Pune declare that I have prepared this project report on Effective
Planning of Distribution Network for Distributor in Nasik City at
COCA-COLA, NASIK, under Mr.Dinesh Dhopte and by Prof.
J.K.sharma Faculty of G.H.RAISONI Institute, Pune.
Enough care has been taken to make this report flawless. However,
Constructive criticism and suggestions from the readers of the report will
be greatly accepted.
Date: Sep, 2008
Place: Pune
PRASHANT SAMDADIYA
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EXECUTIVE SUMMARY
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A project can be defined as a detailed & systematic analysis of a predefined
objective so that future actions could be formulated in order to achieve the objective
or target of organization. Project report explores the new dimensions & opportunities
for the organization so that the organization can grow by its strengths, winning its
threats & overcoming its weaknesses.
The purpose of research is to discover answer to questions through the application of
scientific procedures.
The main aim of research is to find out the potential outlets as well as new
and existing outlets and arrange them in a logical sequence so the distribution of the
product can be done conveniently.
The motive of this research was to identify the channel conflict of the
Distribution channel of HCCBPL. Out of which the most important about the
HCCBPL, that up to what level of services they are providing to trade, whether the
customer are satisfied by the company or not, what kind of support company requires
from the retailers.
In short it is rearrangement of distribution network by defining proper
routs to distribute the product to the retailers by the distributor.
So there is a primary and along with primary other secondary objective to
this project viz are as under
Though the primary objective is rearrangement of distribution network
other secondary objective about product availability, service frequency, other
services, competitors, address and location of outlets, telephone their class etc.Overall
performance of the distributors is assessed and rectify the faults.
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By collecting the all information from the existing route structure of retailer, It
is observed all the things of service. .After collecting all data, it become easy to make
route structure. Further made a schedule of delivery i.e. twice in week service.
Because of this survey it was easy to rearrange the distribution
In this way the project made plan of channels for distribution with an implementation
of it in the market
In FMCG the role of distribution system is considered as a first one because
distribution system makes product available to the outlets and only then it can be sold.
While conducting the survey of retailer a questionnaire to me , which has to
fill up by the retailers so that it meets the requirement of the organization.
I have tried to visit each and every outlet & personally them .In order to
know the market share of Coca-Cola and its competitors. I have conducted survey at
Nashik.
LIMITATIONS
In reality when I carried out this field survey for HCCBPL, I came across different
problems. The problem faced were the limitation the project. They are as follows.
Reliability -
During the project I have to trust the words of the retailer, but the actual
situation may vary.
Time constraint:
As per the college schedule I had to complete the survey and its research
analysis in a period of 2 months. As a result, I could not carry out more
extensive survey. Due to this shortage of time we were not able to cover more
areas.
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Respondent were busy:
According to the requirement of the survey I had to fill in the questionnaire by
the outlet owners. But the owners are not always available for correspondence
due to some business works or some personal works.
Psychology of retailers:
During the process of interview some of the respondent were feeling why
me attitude. They told that whats the use of survey to them it is for
companys use and they deliberately ignored the questions or misguided me.
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INTRODUCTION
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The project topic is EFFECTIVE PLANNING OF DISTRIBUTION FOR
THE DISTRIBUTORS OF NASHIK CITY.
Means rectify and eradicate the faults in the distribution network and re
arrange it in such a way that it would convenient to distribute the product to
enhance the sale effectively which is objective of our project , includes various
stages like Every Dealer Survey Identification of new outlets, definition of correct
routs and rearrangement of distribution channel.
The topic is market oriented that I had to collect first hand information from
the retail outlets in the Nashik city under the distributor.
In today's world of high stress, the need for refreshments and beverages is
increasing rapidly. Tea and Coffee were traditional refreshers. Now, they are being
replaced by soft drinks. In 1980's and 1990's, soft drinks became the most consumed
drinks over Coffee, Milk and Beer.
Although Soft drinks have been around for over 100 years, they didn't achieve
their number one status until fairly recently. In fact, more than one-third of all
beverages currently being consumed In the United States are carbonated soft drinks.
And while soft drinks are the drink of choice, there are still tremendous growth
opportunities for cold drinks and non-carbonated soft drinks. Coca Cola has the
largest market share in the world, in the field of soft drinks, its major competitor
being Pepsi.
The basic ingredients of soft drinks include water, color, gas, and the secret
formula (added flavors). Same flavors produced by different companies differ in taste,
due to the difference in the secret formula. The government of India has considered
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the soft drink industry as, "nonessential." As a result, the excise duty levied by
the government on soft drinks is very high. Soft drink industry in India has an annual
sale of about 6000 crores with per capita consumption of 9 bottles per annum.
Pakistan has per capita consumption of 16 bottles per annum, whereas China and
USA have per capita consumption of 800 bottles per annum.
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COMPANY PROFILE
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History of Coca Cola:
Jihan Styth Pemberton, the father of Coca Cola, first introduced Coca Cola
in Atlanta, Georgia in 1886, first Coca Cola was of Carmel colored syrup in a three
legged kettle. For the first time in history, carbonated water was introduced as soft
drink. It was Dr. Pembertsons Partner Frank Robinson who suggested the name
Coca Cola, that is now famous & known to whole world.
In 1891, Atlanta entrepreneur Asa G Candler took the company in to a
staggering height of commercial success, making Coca Cola a famous institution the
world over.Coca-Cola is a type of carbonated soft drink sold in stores, restaurants and
vending machines in more than 200 countries. It is produced by The Coca-Cola
Company and is often referred to simply as Coke. Originally intended as a patent
medicine when it was invented in the late 19th century by John Pemberton.
The Coca Cola Company is the worlds largest manufacturer, distributor &
marketer of non-alcoholic beverage concentrates & syrups. Beverage products with
the Coca Cola brand name have been sold in the U. S. since 1886. In May of that
year , Dr. John S Pemberton invented Coca Cola. It was first sold at a soda fountain in
Jacobs pharmacy in Atlanta, U.S. This was incorporated in September 1919, Coca-
Cola sells more than 1 billion drinks all over the world. Delaware & new employees
around 55,000 people. About 1.3 billion servings of Coca Cola products & consumed
all over the world every day. For the fiscal ending 2007, the company touched net
revenues of $32 billion.
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Franchised production model:
The actual production and distribution of Coca-Cola follows a
franchising model. The Coca-Cola Company only produces a syrup concentrate,
which it sells to various bottlers throughout the world who hold Coca-Cola franchises
for one or more geographical areas. The bottlers produce the final drink by mixing the
syrup with filtered water and sugar (or artificial sweeteners) and then carbonate it
before filling it into cans and bottles, which the bottlers then sell and distribute to
retail stores, vending machines, restaurants and food service distributors. The Coca-
Cola Company owns minority shares in some of its largest franchises, like Coca-Cola
Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company (CCHBC),
Coca-Cola FEMSA, Hindustan Coca-cola beverages(HCCBPL), but fully
independent bottlers produce almost half of the volume sold in the world. Since
independent bottlers add sugar and sweeteners, the sweetness of the drink differs in
various parts of the world, to cater for local tastes.
COCA COLA INDIA: A BRIEF OVERVIEW
Coca-cola Export Corporation started its business in India in 1977, with its corporate
office in Atlanta and its various plants globally. Janata Party Government stopped the
Indian operations with a view to promote national brands, with the changing
government policies from time to time. Multinational companies were again permitted
to operate in India in October 1977. This was the re-entry of the company in the
Indian market after the withdrawal of its operations in 1977,
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The company's operations started in Agra and thus its wings spread all over India. The
Indian market offers a strong consumer potential as majority of the population is in
the middle class category, which provides a strong consumer base for an FMCG
company like Coca-cola to float its range of products in the market.
Coca-cola had acquired the brands like Thumbs Up, Gold Spot, Limca, Maaza, etc.
from Parley Company. These products had achieved a strong consumer base and
formed a strong brand image of the company during the re-entry of the company in
the Indian market in 1993. Thus, these drinks became a part of the product range of
Coca-Cola.
"Share my dream", said Coca-cola to the Indian consumers in 1993, and coke lovers
welcomed back, the world's best-known brand with misty eyes. Coke entered the
A&M top brands survey in 1994 as no. 31 with a power score of 29.9, a year after its
reentry to India. Among soft drinks, coke was stronger than Pepsi among the older
people, while Pepsi scored above coke with the "Generation next".
Coca-cola has brought the national brands Thumbs Up, Limca and Gold Spot from
Parle Beverages. Coca-cola has also acquired Cadbury's soft drink brands like Crush,
Canada Dry and Sport Cola in the early 1999 and recently in October 2000, it has also
acquired the distribution rights of these brands from IFB Agro limited.
Pepsi, although started a couple of years before Coca-cola, has a lower market share
today. It has bought the Mumbai based Duke's range of soft drink brands. After
undergoing a complete restructure of its set up, Coca-Cola India Ltd. (CCI) was
confident of making profit two to four years down the line. The company has
developed four core business strategies. First, "Think local, act local" approach, both
in terms of manufacturing and distribution as well as marketing. Second, "Focus on
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all non-alcoholic commercial beverages". Third, "Ensure cost and process efficiencies
in all aspects of the business" to maximize returns on the infrastructurat investment.
Forth, "Nurturing a people-driven company". The company has also worked on its
distribution strategies by increasing the outlet base. The focuses are on increasing
rural penetration, profitability and own your asset concept (OYA). Coca-cola has also
adopted a local consumer marketing strategy by promoting coke in Delhi, Thumbs up
in Mumbai and Andhra Pradesh and Fanta in Tamilnadu. The recent focus on Maaza
has also increased its growth by almost 30 percent. Coca-cola India has also launched
Kinley mineral water. Various product of Coca-Cola
In 2005, the Company broke into two divisions: Coca-Cola India and HCCBPL
to increase focus on the bottling business.
HCCBPL is the bottling division
Bottling Investments Group (BIG) envisions to create a 'World Class Bottling
Business' measured against key benchmark
o In 2005, the company split into two divisions - Hindustan Coca-Cola
Beverages and Coca-Cola India o HCCBPL handles manufacturing of finished
products, selling and delivery to customer
Coca-Cola sells more than 1 billion drinks a day and employs more than
55,000 people all over the world.
More than two crore Indians are refreshed by Coca-Cola every day!
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INDIA BUSINESS MODEL
The Coca-Cola eKO system is governed by 5 major policies. Each of these policies
are supported by specific requirements and practices that govern our daily operations:
1. A commitment to lead
2. Compliance and beyond
3. Accountability
4. Minimizing impact maximizing opportunity
5. Citizenship
Manufactures Concentrate,Beverage Base & Syrup&Corporate Service support
HCCBPLRegions/Units
Manufactures Finished Bottle/Can,Fountain Syrup
CustomerSells & Delivers
Consumer
Coca-Cola
India -Division
Hindustan Coca Cola Beverages Pvt. Ltd.Hindustan Coca Cola Beverages Pvt. Ltd.
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Mission
Everything we do is inspired by our enduring mission:
To Refresh the World... in body, mind, and spirit.
To Inspire Moments of Optimism... through our brands and our actions.
To Create Value and Make a Difference... everywhere we engage.
Vision
To achieve sustainable growth, we have established a vision with clear goals.
Profit: Maximizing return to shareowners while being mindful of our overall
responsibilities.
People: Being a great place to work where people are inspired to be the best
they can be.
Portfolio: Bringing to the world a portfolio of beverage brands that anticipate
and satisfy peoples desires and needs.
Partners: Nurturing a winning network of partners and building mutual
loyalty.
Planet: Being a responsible global citizen that makes a difference.
Values
We are guided by shared values that we will live by as a company and as individuals.
Leadership: "The courage to shape a better future"
Passion: "Committed in heart and mind"
Integrity: "Be real"
Accountability: "If it is to be, its up to me"
Collaboration: "Leverage collective genius"
Innovation: "Seek, imagine, create, delight"
Quality: "What we do, we do well"
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Beliefs
We strive every day to refresh the marketplace, enrich the workplace, protect the
environment and strengthen our communities.
We are a local employer, with responsibility to enable our people to tap into their full
potential; working at their innovative best and representing the diversity of the world
we serve.
We are an investor in local economies and a driver of marketplace innovation, with a
responsibility to act as a good steward of our natural environment.
And we are a local citizen, understanding our responsibility to contribute to an
improved quality of life in our communities.
Products
Coca-Cola serves in India some of the most recalled brands across the worlds, which
include names such as Coca-Cola, Diet Coke, Sprite, Fanta, along with the
Schweppes product range.
The acquisition ofThums Upbrought some of the leading national soft drinks like
Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to this,
Kinley mineral water was launched in the year 2000.
The Company ranking up "firsts" in the introduction of Canned and PET soft drinks,
vending machines and backpack dispensers for crowds of cricket supporters.
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PRODUCTS -
Strong Cola Taste, Exciting Perosnality
Thums-up is a leading carbonated soft drink and most trusted
brand in India. Originally introduced in 1977, Thums Up was acquired by The
Coca-Cola Company in 1993.
Thums-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.
Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one
of the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993.
Over the years Fanta has occupied a strong market place and is identified as 'The Fun
Catalyst".Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting
taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus
encouraging one to indulge in the moment. This positive imagery is associated with
happy, cheerful and special times with friends.
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Limca, the drink that can cast a tangy refreshing spell on anyone,anywhere. Bom in
1971, Limca has been the original thirst choice, of millions of consumers for The
brand has been displaying healthy volume growths year on year and Limca continues
to be the leading flavors soft drink in the country.
The brand has been displaying healthy volume growths year on year and Limca
continues to be the leading flavors soft drink in the country.
. Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca
and walk away anew person...
Worldwide Sprite is ranked as the No. 4 softdrink & is sold in more than 190
countries.
In India, Sprite was launched in year 1999 & today it has grown to be one of the
fastest growing soft drinks, leading the Clear lime category.
Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth,
Sprite has stood for a straightforward and honest attitude. Its clear crisp refers high
taste encourages the today's youth to trust their instinct, influence them to be true to
who they are and to obey their thirst.
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Maaza was launched in 1976. Here was a drink that offered the same real taste of
fruit juices and was available throughout the year.
In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the
fruit drink category. Over the years, brand Maaza has become synonymous with
Mango. This has been the result of such successful campaigns like "Taaza Mango,
Maaza Mango" and "Botal main Aam, Maaza hain Naam". Consumers regard Maaza
as wholesome, natural, fun drink, which delivers the real experience of fruit. The
campaign builds on the existing equity of the brand and delivers a relevant emotional
benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza".
Coca-Cola Thanda Matlab Coca-Cola
This is World's favorite drink & World's most valuable brand. The most recognizable
word across the world .Coca-Cola has a 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.
More Over the past ten years has captured the imagination of the nation, building
strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola
has been very strongly associated with cricket. In 2002, Coca-Cola launched the
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campaign Thanda Matiab Coca-Cola" which skyrocketed the brand to make it India's
favorite soft-drink
Boond Boond Me Vishwas
Water, a thirst quencher that refreshers, a life giving force that washes all the
toxins away. A ritual purifier that cleanses, purifies, transforms Water, the most basic
need of life, the very sustenance of life, a celebration of life itself.The importance of
water can never be understated. Particularly in a nation such as India where
governs the lives of the millions,
Kinley water understands the importance and value of this life giving force.
Kinley water thus promises water that is as pure as it is meant to be. Water you can
trust to be truly safe and pure. Kinley water comes with the assurance of safety from
the Coca-Cola Company.
Marketing Mix
Coca-Cola Company strives for unparallel understanding of consumers and the drives
of their attitudes & behaviors towards the purchase of non-alcoholic beverages. This
allows them to build their brands & achieve profitable volume growth. They do this
by understanding the consumer. Even with worldwide success, Coca-Cola products do
not sale themselves. The company is always working to expand its business to reach
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more consumers, in more places on more occasions. In summery, marketing at the
Coca-Cola Company begins and ends with consumer.
The 3 A's
Coca-Cola Company's portfolio is a powerful set of brands that can satisfy consumer's
non-alcoholic beverages needs. Their strategy for connecting with increasing numbers
of customer is based on the belief that consumers will buy our products if they are
widely available, if they are affordable & if they are well known to the customers by
aggressive activation. They call this strategy as the 3 A's.
Availability
Coca-Cola's product must be widely available to encourage customers. For the
company ever growing Availability is very essential.
Affordability
Coca-Cola's products must have the best price relative to value. Simply being
affordable may imply a place in consumers mind.
Activation
Coca-Cola's products must be preferred, not just acceptable. Consumers should ask
for its brand by name & for that aggressive Activation is necessary.
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Types of Channel Ditribution
Channel Of distribution for consumer goods
O-Level 1-Level 2-Level 3-Level
Manufacturer
Channel of distribution in Coca-Cola
ManufacturerManufacturer Manufacturer Manufacturer
Consumer Consumer Consumer Consumer
Retailer Retailer
Wholesaler
Retailer
Jobber
Wholesale
Company
Distributor
Retailer
Consumer
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ORGANISATIONAL STRUCTURE
AGM / AOD
Plant
Manager
ASMsChannelManager
Area CapabilityDev Manager
MarketDevelopers
Distributors/Salesmen
Marketing Key Accounts
Sales TrainersSales Executives
Sales Manager
/ GSM
Finance
Manager
HR
ManagerRoute toMarket
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OBJECTIVES
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PRIMARY OBJECTIVES
To analyze and identify the present distribution network and rearrange it to
improve the effectiveness of distribution of product to enhance the ultimate
sale.
To suggest delivery route in order to improve delivery schedule effectively.
SECONDARY OBJECTIVES
To assess the sales potential of the outlets of HCCBPL in Nashik city.
Improve the distribution network
To find out any deficiency in the service offered by Coca-Cola
Addition of the new outlets for add new vehicle for restructuring route and
increase sales volume of distributor and company.
Increase the realignment of routes.
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RESEARCH
METHODOLOGY
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Company wanted to understand the strength & weakness in their distribution
channels. Hence project was assigned to study the distribution channels.
Research in common parlance refers to a search for knowledge. In fact
research is an act of scientific investigation.
Research Methodology is a way to systematically solve the research problem.
Research Methodology is the way of knowing how research is done. It is science of
studying how research is done.
The methodology adopted for this research is totally exploratory as the reason
for the research is to find out the Distribution networkin context to Unique
Distribution And Selling of Colas.
Data sources
Secondary sources:
The data that is collected from already existing sources is called secondary
data. In case of my study the secondary sources were the records of the company,
internet.
Primary sources:
Sources from where the first hand information is gathered directly are called
primary data sources and information thus collected is called primary data. In case of
my study the primary sources were retailers.
Plan of Action
Segment wise division of the market.
Collection of database.
Setting targets of personal interview and collection of information per day.
Analysis of the information.
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Preparation of pie charts in the form of soft copy to analyze the position of
each soft drink in the market against the competitors.
Finding out the effectiveness of the channel was a difficult task. In some cases I had
to depend on retailers' word. Availability of the product was found by actually
counting the crates of various products.
Methodology -
1. Survey method
2. Observation method
3. SAMPLING PROCEDURE:
This refers to procedure by which respondents should be chosen. Probability sampling
can be of following types:
Cluster sampling
In this case stratified random sampling was done since respondents were classified
into well define classes or stratas that were distinct from each other.
Sampling Method
Distributor-wise Sequence Sampling
Interviewing the retailers by questionnaire collects the data. The questionnaire
construction is properly regarded as a very imperfect art. There are no established
procedures that will lead to a 'good' questionnaire. A good questionnaire accomplishes
the research objectives. Surveys must be custom-built to be the specification of given
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research purposes, and they are much than a collection of unambiguous questions. A
number of constrains are imposed on the development of an appropriate
questionnaire. The wording and sequence of questions can facilitate recall and
motivate more accurate responses.
Sample Unit : (Sample Size) - Nashik
300 Retailers 1 Distributor
Sampling Area :
Area covered in this survey was College road, Ganagapur road, Mahatma
Nagar, Tidkey Colony, Sharanpur Road, Tibetian Market etc. for HARI OM
DISTRIBUTOR in Nashik city.
Data Collection :
Structured Questionnaire:
In the survey, structured questionnaire as a tool for asking a set of standard
questions.
FORMATION OF QUESTIONNAIRE:
Quite often the questionnaire is considered as the heart of the research operation.
Hence it should be constructed carefully. It is an instrument that is widely used to
collect various types of data and consists of long list of questions designed to collect
any information. It has been generally seen that people are more frank in giving
replies through the questionnaire than the interview. Though being less expensive it
has certain limitations like incomplete entries and incomplete responses. But the
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educational qualification of the respondent is an additional factor by which this
technique is more relied upon.
Formation of a good questionnaire involves intensive thinking and deliberation of the
problem with predetermined objectives and aims properly placed in the questionnaire.
All the questions in the questionnaire are framed with a specific objective in mind and
all are placed in a logical and sequential order.
Interview:
The next step involved in collecting information, requires discussion with
people. Thus valuable information was gathered through informal friendly talks with
the people.
Information Gathered :
1) Primary Data:
Direct interview with retailers
Gathered information through questionnaire
2) Secondary Data:
Data which are collected through magazines , websites, company book
& records.
The survey held in logical sequence as per distribution rout of distributor for
distributing the product. As per the companys instruction.
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REVIEW OF LITERATURE
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As given above the project was given for rearrangement of distribution
network as well as collection of primary data from the retail outlets about product
availability, service, competitors, market share, address and location, telephone no.,
capacity of each outlet etc.
For collecting such information company gives a column wise format of
questions should be asked. That format is standard format which accurately fulfill the
main aim of the project.
Mr. Dinesh Dhopte (ASM) Hindustan Coca Cola Beverages Pvt. Ltd. For
Nashik plant. Gives 6 steps in order to complete this project. As per the companys
instruction I did the work which is divided in such 6 steps .They are as Follows
1) Definition of the area where survey is to be held (Distributor wise)
2) Every Dealer survey (EDS)
3) Rout Definition
4) Rearrangement (Final rout list)
5) Validation
6) Recording the information in the DAS - Dealers Accounting Software
(Companys own software)
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Definition of area where survey will be held:
In this first step the area of survey was defined. A specific area was given for
survey by the company. It was impossible to do survey of whole nashik city because
of limited time. So it was necessary to assign a specific area for the survey. So
company gave the distributor wise area.
Distributor wise area -
The company has main distributors, which has been assigned a specific area
for distribution of product. No one distributor can distribute the product in the others
area.
Company gave the area of a particular distributor. So it was easy to do survey
in that particular area.
Existing list of records
Before doing the survey I collect the existing records of retail outlets from that
distributor, so I got certain base for my survey. Companys marketing executives
guided me for that purpose. Company gave a special column wise format of questions
which are to be asked.
I also collect the information about the routs through which distribution is
done in that area. It includes starting point from where the vehicle starts to give
delivery, the day on which the vehicle goes on that particular rout.
In short that was existing data which was only a base for survey, because the
original and fresh data was to be collected from the survey.
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Every Dealer Survey (EDS):
After collecting the existing information as base the survey starts with the
standard questions format which is fair enough to fulfill the purpose of survey. That
format is provided by the company. It was companys standard format. The
company calls this survey as Every Dealer Survey (EDS).
Every dealer survey is collection of information about companys service,
performance, capacity of retail outlet, mos famous product, response of new product,
delivery service frequency etc.
In that format following information collected to make a true database of
target market.
Brief information of outlet -
The information of distributor under whom the area is there. Vehicle type ,
vehicles registration number, name of sales person, route name, outlet name, its
owner or contact persons name, its address, telephone no, etc
Channel -
Type of channel i.e. whether it is grocery, eating and drinking or convenience,
other etc.
Grocery :
Outlets primarily engaged in retailing of food & various household items. It
includes Grocers and General Stores.
Eating & Drinking (E & D):
Outlets selling to eat which are being cooked within outlet, made at the outlet
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with possibility of consuming those product within the outlet. The outlet may
have lace to sit. It includes QSRs/ Bakery/ Mithai stores/ Restaurants/ Bars/ Juice
centers/ Soft Drinks Shops/ Ice Cream Parlors/ Tea Shops/ Cafes etc.
1. Convenience:
Includes outlets, which are small stores or shops, generally accessible locally.
These are often located alongside busy roads. It includes Chemists/ STD Booths/ Pan
Beedi Shops etc
CHANNEL
CLUSTER
GROCERY
EATING & DRINKING
CONVENIENCE
VPO Class
VPO class defines the outlets capacity of making stock. It means each outlet
is purchasing how much cretes. It is classified in 4 categories
1) Bronze -
In this category the outlet purchasing 1 to 200 crates included
2) Silver
The outlet purchasing 200 to 500 crates is included in silver category
Similar groupingof Outlets basis
format & shopperoccasion
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3) Gold
The outlet purchasing 500 to 800 crates is included in gold party.
4) Diamond
In this category the outlet purchasing above 800 crates is included . Such
Diamond outlet is known as RED OUTLET in the company. This outlet name is
always shown in red ink in the companys record.
OUTLET
V OLUME
Classifying Outlets basis
Volume Per Outlet
B
R
O
N
Z
E
S
I
L
V
E
R
G
O
L
D
D
I
M
O
N
D
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Route Definition:
While doing the survey I visited each and every outlet in the rout in sequence
and identify existing outlets as well as new outlets. At the time of doing this activity I
found different small routs to main routs. So I recorded those routs in logical manner
in which vehicle can distribute the product at the time of going through main route.
As per the companies instructions I divide the one route in main route and sub route.
Main route
The route on which basically the vehicle is distributing the product, which is
in the companies record. E.g. Gangapur road, College road etc. Some routs are known
as area wise like Mahatma Nagar, Tidke colony.
Sub routs
There are many small routes which are connected to main route are known as
sub routs. This sub routs are having lots of outlets, so they are equally important as
like main route. So vehicle can serve those routes at the time of serving main route.
Such routs are denoted by s1, s2 etc.
Rearrangement (Final Route list):
After identifying the routs as well sub routs, all the existing as well as new
outlets are arranged sequensely. As per the capacity of vehicle to serve the route with
sub routes final list of outlets and route is prepared. This is totally depend on vehicles
capacity.
E.g. one vehicle (Tempo) with salesman can cover 50 to 60 outlets in a day. As per
this capacity new routs are defined through which vehicle can serve the outlets
without any difficulty.
Allotment of particular day for particular route
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For every main route or area a particular day was assigned and service
frequency for each rote was at least 2X means twice in a week.
Arrangement of route and sub routes -
Validation:
After rearranging the outlets and defining the error free routes, These routes
are checked by the ASM of the company. He discussed those routs with their
marketing executives and me that whether those arrangements are valid or not. He
also cross checked this arrangement with his past existing data.
Recording of information in the DAS:
This was the last step in our project. After validating the routs and preparing the final
list, all the information about outlet is recorded in the DAS (Companys software).
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DAS
DAS (Dealers accounting software ) is a software which is recently
introduced in company. As we come to know by name itself, it is a software which is
developed to record brief information of retail outlet under each distributor and
information about main distributor itself.
Before DAS there was companys manual record which was very lengthy.
There were big files of this information which were expensive and time consuming to
record, to update and to extract.
It is totally automated system having the back up data of actual market where
products of the company are going to be distributed. DAS software is developed for
coca-cola company.
Advantages of DAS -
1) Faster to find out information of any outlet.
2) Total mechanized data.
3) Back up of recorded data on another hard disk.
4) Less time consuming and inexpensive.
5) Having computerized system itself having competitive advantage of company in
the era of competition
6) As it is a systematic record, it is possible to ASM to improve the distribution
network as well as sale.
In this software there are columns to record the information about the outlets. These
columns consist with Name of outlet, its address, location, telephone no. contact
person, VPO class, channel, red code, day of service etc.
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DATA ANALYSIS AND
INTERPRETATION
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1. Type of Outlet:-
Types Of Outlets No. of Retailers Percentage
Eating & Drinking 140 42.42%
Grocery 115 34.84%Convenience 60 18.18%
Others 15 4.54%
Total 330 100%
Chart- 1
TYPES OF OUTLETS
42%
35%
18%5%
E&D
Grocery
Convenienc
Others
Interpretation
There are near about half outlets are eating and drinking in the area I
surveyed. Grocery shops are also more interested to sale the cold drink. These grocery
shops include more (kirana) stores& also chance to growth in sale by increasing
number of E&D outlets.
2. Existing and additional outlets
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1 140 46.66%
2 90 30%
3 70 23.34%
Total 300 100%
Chart- 3
SERVICE FREQUENCY IN A WEEK
17%
33%
50%
Interpretation
Here half of retailers are serving by twice in a week frequency which is quite
comfortable. In the market many retailers are adjusting with service frequency of
twice but they will be happier if they get frequency of thrice.
Some small convenient stores and small turnover outlets are served by service
frequency of one time.
4. What is the frequency of service do you expect?
Table- 4
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Frequency No. of retailers Percentage
Twice 141 47%
Daily 9 3%
Alternate days 150 50%
Total 300 100%
Chart- 4
EXPECTED SERVICE
47%
3%
50%
TwiceDaily
Alternate days
Interpretation
This shows the expectations of outlet from service
provider(distributor). The 47% of outlets wants service twice in a week,while 3%
wants the service daily and 50% outlets demanding service in alternate days . So it
shows more outlets want service twice or in alternate days.So the service provider
should provide service in alternate days to the retailers.
5. What is the sale of crates per week?
Table-5
Sale of crates No. of retailers Percentage
0-10 100 33.33%
11-20 90 30%
21-30 70 23.33%31-40 40 13.33%
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Total 300 100%
Chart- 5
Interpretation
As the frequency of service is twice in a week is more and expected to be thrice, the
retailers are not maintaining big stocks and purachasing only that much which is
require. So purchase of 10 and 20 crates is more
6. What do you think about the promotional activities of the company?
Table- 6
Activities No. of retailers Percentage
Good 45 15%
Average 225 75%
Poor 30 10%
Total 300 100%
Chart- 6
SALE OF CRATE
34%
30%
23%
13%
0-10
20-Nov
21-30
31-40
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SATISFACTION LEVEL
15%
75%
10%
Good
Averag
Poor
Interpretation
This Pie-chart shows the 45 outlets(15%) told that the promotional activities
are good, while 225 outlets(75%) told that the promotional activities of the company
are average, 30 outlets(10%) not happy with promotional activities of the company.
So this shows that the most of outlets are quite happy with the promotional activities
of the company. There is huge potential to promote relation who have rated average
(75% )
7. Are you satisfied with the distributor service?
Table- 7Satisfaction No. of retailers Percentage
Yes 140 46.66%
No 160 53.34%
Total 300 100%
Chart- 7
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SATISFACTION LEVEL
47%
53%
Y
N
Interpretation
Overall the number of satisfied retailer is less than dissatisfied retailers.
Dissatisfaction arises because of low service frequency, visicooler problem, ignorance
of small turnover etc.
8. Market share analysis with competitors
Table- 8
COMPANY MARKET SHARE (%)
Coca-Cola 70
Pepsi 25
Others 5
Total 100%
Chart- 8
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0%
10%
20%
30%
40%
50%
60%
70%
80%
CocaCola Pepsi Others
COMPANY
PERCENT
Interpretation
Coca-Cola takes only Pepsi as its rival. It doesnt take other local
players in to consideration very seriously. In Nashik the performance of Pepsi is very
poor. Market share of Coca cola in Nashik city is near about 70%. There are most of
monopoly outlets in the Nashik.
9. Which Product of coca-cola company most sold?
Table- 9
Product No. of retailers Percentage
Thumps up 120 40%
Coca cola 15 5%
Sprite 75 25%
Mazaa 15 5%
Fanta 30 10%
Limca 45 15%
Total 300 100%
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Chart- 9
PRODUCT SALE
40%
5%25%
5%
10%
15%Thumps u
Coca cola
Sprite
Mazaa
Fanta
Limca
Interpretation
In Nashik Thums up is most popular and most selling product. Coca-
Cola has limited sell. Sprite is more popular on young generation and Fanta is popular
in girls and women. Limaca is also popular as thirst quenching drink
10. Visicooler availability in outlet - (Product cooling Equipment)
Table- 10
Availability No. of retailers Percentage
Coca cola 120 40%
Pepsi 30 10%
Both 90 30%None 60 20%
Total 300 100%
Chart-10
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Outlet (%)
40%
10%
30%
20%
Coca-C
Pepsi
Both
None
Interpretation
As coca-cola has grater market share, it is providing more and more
visicoolers to the monopoly outlets where as Pepsi has very less monopoly outlets.
Shared market outlets having both visicoolers is also more in number. There are also
small as well as grocery outlets which doesnt have product cooling equipment i.e.
visicooler.
11. Which mineral water sold most?
Table-11
Name No. of Retailers Percentage
Local Brand 180 60%
Bailey 45 15%Bisleri 30 10%
Kinley 18 6%
Aquafina 15 5%
Oxyrich 12 4%
Total 300 100%
Chart-11
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MARKET SHARE OF KINLEY
30%
8%
5%3%3%2%
49%
Local Bra
Bailey
Bisleri
Kinley
Aquafina
Oxyrich
Total
Interpretation This pie-chart diagram shows that Kinley mineral water of coca-
cola company have only 6% market share, Bailey mineral water have near about 15%
market share, whereas Bisleri have 10% market share of Aquafina of Pepsi company
have 5% market share, Oxyrich have nearly 4% market share but local brands like
Rajhans, Aquaaura,Honey,Pentacool have covered nearly 60% markets local brands
or products have highest market share than branded products. it was due to high price
of kinley.
12. Expectations of Outlets from Company
Table- 12
Expectation No. of Retailers Percentage
Cash Discount 135 45%Credit System 105 35%
Points Earned onachieving targets
60 20%
Total 300 100%
Chart-12
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EXPECTATION FROM COMPANY
45%
35%
20%
Cash Discount
Credit System
Points Earned on
achieving targets
Interpretation-
This shows the expectations of outlet from company. The 45 % of
outlets wants cash discount on product purchase, while 35 % wants credit system &
rest wants points rewards on sale. So it shows more customer wish to cash discount
than other.
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The marketing inputs with respect to:
a) Advertisement
b) Servicing
Distributor survey as the word indicates is the survey of every distributor of
soft drink in the area .For practical purpose the distributor not only include the
authorized distributor appointed by the company but it also it includes retailers big
or small grocery, shops, stationary, restaurant, retail shop etc. Beside these the various
exclusive stalls and sales of pantry cars also included in it. Briefly by distributor we
mean those who are dealing with the soft drink in some way or the other in large or
small quantity, directly or indirectly.
Thus my study includes all such distributor which include various aspects :
Route wise no. of distributor
Crate strength
Per day sales
Chilling aid
Advertising
Nature of outlet
From Every Dealer Survey -
From interview of all the respondents its found that there was problem in
delivery schedule of the products.
Problems associated with the existing route structure & delivery schedule was
known from the retailers. Existing route structure was not covering all outlets
& frequency of visiting to outlets was very low.
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That different types of outlet vary in there number of units sold & this
variation in the sale is due to the size, type of customer, location of outlets.
Brand preference among responded outlets. It just shows that monopoly &
shared market of both Coca-Cola & Pepsi.
The availability of the visicooler provided by company & their competitors. It
can be find out the more the visicooler more the sale of company product.
Among the responded outlets it can be found out mineral water of company
i.e. Kinley show poor performance due to low profit margin & high price of
bottle.
Survey gives the information about how salesman ignores small outlets &
only concentrating on high volume outlets. So that the small outlets think to
stop selling the company product it may cause decrease the sale. They also
think to start the Pepsi service.
In very few outlets there is Pepsi monopoly but they are not also satisfied with
the service and willing to diversify towards Coca-Cola.
Helps to know the satisfaction of outlets from the rewards provided by the
company or its distributor.
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SUGGESTIONS AND
CONCLUSION
Suggestions
The problem faced by outlets were identified as the schedule of delivery,
day, placing of order, fulfillment of order,and frequency. The company
should make changes in the distribution channel with a view to cover all
outlets under each distributor & timely delivery and complete of delivery
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The entire products of company should be displayed at one place in the
outlet so that the customers can easily made aware about the different
products of company.
Distributors of the company should be carefully selected, as there were
many complaints against the company distributors regarding distribution.
A distributor should be totally Business oriented & in the absence of his
salesmen, he should be capable of going on the route & performing
effective sales.
Salesman should have good interaction with the distributor & outlets,
which will result in increase the sales. Targets for the Salesman should be
set for identifying and creating new outlets.
Conclusion-
1. While working forCoca-Cola I have experienced a lot many things. Coca-Cola is
a company whose purpose is to meet the refreshment need of people everywhere, to
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anticipate the aspiration of consumers and to respond creatively and competitively
with branded products and services, which raises the quality of life.
The job given to me was to conduct a market survey and rearrange it geographically
for the convenience of distribution..
2. Availability is main strategy of the company. Comapany believes that if you make
available your product at each and every area then your sale will be definitely
increase.
3. While doing every dealer survey I identify the new outlets with existing outlets on
a particular route and rearrange it in a logical sequence and define a new route where
service provider can easily distribute the product.
4. On the basis of data collection of new routes for particular area is identified and
suggested to distributor to go through that arranged route and use new list of retailers.
5. Coca-Cola has got a very strong distribution network; it should try to penetrate
the market supply.
6. Company records all this data for its database and follows new arrangements for
sale.
7. Thumps-Up is the largest selling drink of Coca Cola in Nasik, Contributes to
almost 40% than other products as it is consumed almost in all the Bars.
8. Thums-Up and Sprite are the most commonly demanded products of Coca Cola in
Nasik, which contribute to 40% and 25% respectively as against its other products.
9. 300 ml RGB pack is the most commonly demanded pack of Coca Cola India in
Nasik, which contributes to almost 30% as against its other packs.
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Books:
1) Rajan Saxena 2007, Marketing Management, Tata McGraw Hill New
Delhi.
Websites
1. www.coca-cola.com
2. www.hindustancoca-cola.com
3. www.coca-colaindia.com
4. www.coca-colawickepedia.com
APPENDICES:
Hindustan COCA COLA Beverages Pvt. Ltd., Nasik
http://www.coca-cola.com/http://www.hindustancoca-cola.com/http://www.coca-colaindia.com/http://www.coca-colawickepedia.com/http://www.coca-cola.com/http://www.hindustancoca-cola.com/http://www.coca-colaindia.com/http://www.coca-colawickepedia.com/ -
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Outlet Name: - Distributor Name:-
Contact Person: - Contact No.:-
Address: - Location: - Landmark:-
1) Type of Outlet:-
a) END
b) Grocery
c) Convenience
d) Others
2) Existing or New outlets:-
a) Existing outlet
b) New outlet
3) What is the frequency of the service provider visit in a week?
a) 1
b) 2
c) 3
4) What is the frequency of service do you expect?
a) Twice
b) Daily
c) Alternate day
5) What is the sale of crates per week?
a) 0-10
b) 11-20
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c) 21-30
d) 31-40
6) What do you think about the promotional activities of the company?
a) Good
b) Average
c) Poor
7) Are you satisfied with the distributor service?
a) Yes
b) No
8) Market share analysis with competitors.
a) Coca- cola
b) Pepsi
c) Other
9) Which product of coca cola company is sold the most?
a) Thumps Up
b) Coca cola
c) Sprite
d) Mazaa
e) Fanta
f) Limca
10) Visicooler availability in outlet - (Product cooling Equipment)
a) Coca cola
b) Pepsi
c) Both
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d) None
11) Which mineral water sold most?
a) Kinley
b) Bailey
c) Aquafina
d) Oxyrich
e) Bisleri
f) Local Brand
12) Expectations of Outlets from Company?
a) cash discount
b) credit system
c) Point earned on achieving targets