Professional Documents
Culture Documents
University Institute of Applied Management Sciences: Submitted By: Upender Singh M.B.A. (Retail Management) U.I.A.M.S
University Institute of Applied Management Sciences: Submitted By: Upender Singh M.B.A. (Retail Management) U.I.A.M.S
MANAGEMENT SCIENCES
PROJECT REPORT
ON
COMPARITIVE SKU ANALYSIS OF
COKE AND PEPSICO IN TRICITY
SUBMITTED BY:
UPENDER SINGH
M.B.A. (RETAIL MANAGEMENT)
U.I.A.M.S.
CONTENTS
The scope of the project is to study the 300ml Sku of Coca-Cola in Chandigarh. From the last three months
or so our group is in the process of a continuous research on marketing functions and strategies adopted
by Coca Cola. These marketing functions mainly include the marketing mix i-e, Product Strategy and
OPPORTUNITY MAPPING as well as other market strategies.
By looking into this study, the company will be able to take corrective measures to avoid the loopholes
provided by the company in earlier period as a result the market share of the company will increase.
Moreover the project also discusses the analysis of competition, market growth and trend, opportunity
analysis and strategies for creating competitive advantage adopted by Coca Cola.
We will like to add that the project will provide the readers and listeners very high profile information about
the marketing strategies as a whole and also about the Coca Cola Company. Therefore the company is the
market leader among all beverages in 21st century.
In the end we hope that the project will result very profitable for the readers and Coca Cola. Your feedback
in the end either critical or substantial will be very highly appreciated
INTRODUCTION
Beverage industry is one of the fastest growing industry in the country. It can be divided into
two categories :carbonated and non-carbonated.Th ecarbonated drinks can be further
classified into Cola, Lemin, Cludy Lemon etc segments.
Marketing includes all types of tasks like promotions, market research etc. India where more
than 50% of the total population exists below poverty line the consumer cant afford such
high price for soft drinks. As a result the trading activities of the soft drinks industry are
concentrated in and around big cities and town where the purchasing power of population is
considered comparatively high.
WHAT IS AN SKU?
A stock keeping unit (SKU) is a store's or catalog's product and service identification
code, often portrayed as a machine-readable bar code that helps the item to be tracked
for inventory.
A stock keeping unit (SKU) does not need to be assigned to physical products in
inventory. Often, SKUs are applied to intangible, but billable products, such as units of
repair time or warranties. For this reason, a SKU can be thought of as a code assigned
to a supplier's billable entities.
SKU ANALYSIS
The objectives of conducting a SKU analysis are:
1. To identify the subset of SKUs that have the highest contribution to total sales: Sales of
products are always unequal and some contribute more to total sales than others. By
identifying the highest contributing SKUsyou can focus improvement efforts where they will
have the largest impact.
2. To categorize the highest contributing SKUs for use in out of stock analysis and
forecasting: A key objective is to limit the amount of data that needs to be analyzed when
one does item and store level planning. By identifying the highest contributing SKUs, you
can limit the row counts to the number of total stores for each SKU identified. For example,
if you sell one item at 1900 stores, but the item contributes a very small percentage to total
sales, you can eliminate that SKU and the accompanying 1900 rows of data with minimal
impact to effectiveness.
Key Considerations
A SKU analysis is best done by comparing units sold because it factors out the variance
between the prices of different items. Otherwise if you were comparing two different items
which both sold 100 units, but had prices of $5 and $15, the gross dollars will provide a
misleading conclusion that the $15 item is a better seller when in fact they are selling at the
same rate. However, if you are able to apply a gross margin, then dollars-based analysis can
be very useful since analysis could be done on a percentage of gross profits.
Using units sold per store is useful because it eliminates the sales volume variance due to
differing store counts. An alternative approach is to analyze one plan-o-gram set at a time for
the stores that carry that plan-o-gram. This will hold the store count constant for analysis. It
is useful to calculate the percentage change in units sold for the comparable prior year period
at a store level because it indicates if a SKU is growing or declining. When the SKU
category is assigned at the end of this analysis, we will use a composite ranking of both units
sold per store and growth to identify the best SKUs.
Improving Performance with SKU Analysis
Step-By-Step Construction
1. Determine Units Sold and Store Count
2. Calculate Units per Store (UPS )
3. Calculate Percentage Change in Units
4. Calculate Percentage of Total Units Sold by SKU
For each SKU, calculate the percentage of total units sold that the SKU is contributing. This
is done by dividing the SKUs units sold by the total units sold.
5. Calculate Cumulative Percentage to Total
6. Rank Each SKU by Units Sold per Store
7. Calculate Units per Store Percentage Change Rank
8. Create Composite Rank
This method of composite ranking produces a more valid SKU by SKU comparison
9. Categorize Each SKU
The end result of the analysis is to categorize each SKU in an A, B, C, or D category. This is
most easily done by dividing the total number of SKUs in your data table by four.
10. Create Executive Summary
A very good way to summarize the SKU performance for management and retail buyers can
be
BACKGROUND
NAME:
LOCATION:
PARENT COMPANY:
COMPANY PROFILE
HISTORY OF COKE:
The Coca-Cola Company (NYSE: KO) is the world's largest beverage company, refreshing
consumers with more than 500 sparkling and still brands and more than 3,800 beverage
choices. Led by Coca-Cola, one of the world's most valuable and recognizable brands, our
companys portfolio features 20 billion-dollar brands, 18 of which are available in reduced-,
low- or no-calorie options. Its billion-dollar brands include Diet Coke, Coca-Cola Zero,
Fanta, Sprite, Dasani, vitamin water, Powerade, Minute Maid, Simply, Del Valle, Georgia
and Gold Peak. Through the world's largest beverage distribution system, it is the No. 1
provider of both sparkling and still beverages. More than 1.9 billion servings of its
beverages are enjoyed by consumers in more than 200 countries each day. With an enduring
commitment to building sustainable communities, the company is focused on initiatives that
reduce its environmental footprint, create a safe, inclusive work environment for its
associates, and enhance the economic development of the communities where it operates.
Together with its bottling partners, it ranks among the world's top 10 private employers with
more than 700,000 system associates.
The Coca-Cola Company exists to benefit and refresh everyone it touches.
Coca-Cola, the product that has given the world its best- known taste was born in Atlanta, Georgia on May
8, 1886. Coca-Cola Company is the worlds leading manufacturer, Marketer and distributor of non-alcoholic
beverage concentrates and syrups, used to produce nearly 400 beverage brands. The corporate
headquarters are in Atlanta, with local operations in over 200 countries around the world. The Coca-Cola
Company began building its global network in the 1920s.Coca-Cola system has successfully applied a
formula on a global scale Provide a moment of refreshment for small amount of money a billion times a
day.
MANIFESTO FOR GROWTH
MISSION:
People
Bringing to the world portfolios of beverage brands that anticipate satisfy peoples;
desires and needs.
Portfolio
Partners
Planet
VALUES:Our values serve as a compass for our actions and describe how we behave in
the world.
Leadership
Collaboration
Integrity
Be real
Accountability
If it is to be, it's up to me
Passion
Diversity
Quality
E) The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then sell, distribute and merchandise CocaCola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises,
which is the largest single Coca-Cola bottler in North America and Western Europe. The
Coca-Cola Company also sells concentrate for soda fountains to major restaurants and
food service distributors.
F) In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or
produce) syrup concentrate which is then sold to various bottlers throughout the world who
hold a Coca-Cola franchise. Coca-Cola bottlers, who hold territorially exclusive contracts
with the company, produce finished product in cans and bottles from the concentrate in
combination with filtered water and sweeteners. The bottlers then sell, distribute and
merchandise the resulting Coca-Cola product to retail stores, vending machines,
restaurants and food service distributors.
G) One notable exception to this general relationship between TCCC and bottlers is fountain
syrups in the United States, where TCCC bypasses bottlers and is responsible for the
manufacture and sale of fountain syrups directly to authorized fountain wholesalers and
some fountain retailers.
H) The Coca-Cola Company only produces a syrup concentrate, which it sells to 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 sweeteners, and then carbonate it before
putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending
I)
Independent bottlers are allowed to sweeten the drink according to local tastes
J) The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company"
K)
L)
M)
Indian History
N) India is home to one of the most ancient cultures in the world dating back over 5000 years. At the
beginning of the twenty-first century, twenty-six different languages were spoken across India, 30%
of the population knew English, and greater than 40% were illiterate. At this time, the nation was in
the midst of great transition and the dichotomy between the old India and the new was stark.
Remnants of the caste system existed alongside the worlds top engineering schools and growing
metropolises as the historically agricultural economy shifted into the services sector. In the process,
India had created the worlds largest middle class, second only to China.
O)
P) A British colony since 1769 when the East India Company gained control of all European trade in
the nation, India gained its independence in 1947 under Mahatma Ghandi and his principles of nonviolence and self-reliance. In the decades that followed, self-reliance was taken to the extreme as
many Indians believed that economic independence was necessary to be truly independent. As a
result, the economy was increasingly regulated and many sectors were restricted to the public
sector. This movement reached its peak in 1977 when the Janta party government came to power
and Coca-Cola was thrown out of the country.
Q) In INDIA
R)
S)
T) Coca-Cola was the leading soft drink brand in India until 1977 when it left
rather than reveals its formula to the government and reduces its equity
stake as required under the Foreign Exchange Regulation Act (FERA) which governed the
operations of foreign companies in India. After a 16-year absence, Coca-Cola returned to India in
1993, cementing its presence with a deal that gave Coca-Cola ownership of the nation's top softdrink brands and bottling network. Cokes acquisition of local
U) Popular Indian brands including Thums Up (the most trusted brand in India21), Limca, Maaza, Citra
and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also
strong consumer preference. This combination of local and global brands enabled Coca-Cola to
exploit the benefits of global branding and global trends in tastes while also tapping into traditional
domestic markets.
V)
W) Leading Indian brands joined the Company's international family of brands, including Coca- Cola,
diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched
the Kinley water brand and in 2001, Shock energy drink and the powdered concentrate Sunfill hit
the market. While The Coca-Cola Company is a global company with some of the world's most
widely brands, the Coca-Cola business in India, as in each country where it operates, is a local
business.
X)
Y) After a 16-years absence, Coca-Cola returned to India in 1993. The Company's presence in India
was cemented in November that year in a deal that gave Coca-Cola ownership of the nation's top
soft-drink brands and bottling network.
Z)
Coca-Cola India has made significant investments to build and continually improve its business in
India, including new production facilities, wastewater treatment plants, and distribution systems and
marketing equipment
AA)
During the past decade, the Coca-Cola system has invested more than US$ 1
billion in India
Coca-Cola is one of the country's top international investors by 2003; Coca-Cola India
had won the prestigious Woodruff Cup from among 22 divisions of the Company based
on three broad parameters of volume, profitability, and quality.
Virtually all the goods and services required to produce and market Coca-Cola
locally are made in India
The Coca-Cola
system in India
comprises 27
wholly-owned
company-owned
bottling operations
and another 17
franchisee-owned
bottling operations.
A network of 29 contract-packers also manufactures a range of products for the
Company
The complexity of the Indian market is reflected in the distribution fleet, which
includes 10-tonne trucks, open-bay three-wheelers that can navigate the narrow
alleyways of Indian cities, and trademarked tricycles and pushcarts.
The complete manufacturing process had a documented quality control and assurance
program including over 400 tests performed throughout the process.
We will collaborate creatively with those who sell our products in the marketplace,
developing relationships built on mutual success, not only from our brands, but also from
our services.
Ranking: We own 4 of the worlds top 5 non-alcoholic sparkling beverage brands: CocaCola, Diet Coke, Sprite and Fanta.
In India, beverages form an important part of the lives of people. It is an industry, in which the players
constantly innovate, in order to come up with better products to gain more consumers and satisfy the
existing consumers.
BEVERAGE
S
NONALCOHOLI
C
ALCOHOLI
C
NONCORBONAT
ED
CORBONAT
ED
COLA
NON-COLA
NON-COLA
The soft-drink industry comprises companies that manufacture nonalcoholic beverages and carbonated
mineral waters or concentrates and syrups for the manufacture of carbonated beverages.
Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be
further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks
while mango drinks come under non carbonated category.
Cola products account for over 60% of the total soft drink market and include popular brands such as CocaCola, Pepsi, and Thumps up etc. Non-cola segment constitutes for over 35% of the market.
Types of
beverages
Alcoholic
Non Alcoholic
Others
Non Alcoholic
Examples
Beer, champagne
etc.
wine, apple-cider,
Tea, coffee,
squash,
lemonade, juices,
coffee
carbonated
Milk,
soup
The per capita consumption of soft drinks in India is among the lowest in the world - 5 bottles per annum
compared to the 800 bottles per annum in the USA. Delhi reports highest per capita consumption in the
country, 50 bottles per annum. The consumption of PET bottles is more in the urban areas [75% of total
PET bottle (plastic bottles) consumption] whereas the sales of 200ml bottles were higher in the rural areas.
According to a survey, 91% of the soft drink consumption in India is in the lower, lower middle and upper
middle class section.
Last one century witnessed the entry of various soft drink companies but only few of them were able to
survive. The major among them are COKE and PEPSI. These are the only two companies that has shared
the whole market between them and left a very small share for the remaining ones. This made the word
cola drink synonymous to the word soft drink.
Network Bottling:
Both Coke and PepsiCo have franchisee agreements with their existing bottlers who have rights in a
certain geographic area in perpetuity. These agreements prohibit bottlers from taking on new competing
brands for similar products. Also, with the recent consolidation among the bottlers and the backward
integration with both Coke and Pepsi buying significant percent of bottling companies, it is very difficult for a
firm entering to find bottlers willing to distribute their product.
The other approach to try and build their bottling plants would be very capital-intensive effort with new
efficient plant capital requirements in 2009 being more than $500 million.
Advertising Spend:
The advertising and marketing spend in the industry is very high by Coke, Pepsi and their bottlers. This
makes it extremely difficult for an entrant to compete with the incumbents and gain any visibility.
Fear of Retaliation:
To enter into a market with entrenched rival behemoths like Pepsi and Coke is not easy as it could lead to
price wars which would affect the new comer.
BUSINESS MODELS OF
COMPANY PROFILE:
Kandhari Beverages Pvt. Ltd
KANDHARI GROUP was established in 1967 by Late Mr. Teja Singh Kandhari, is presently a progressive
business house in India. The groups first venture was a bottling unit as a franchisee of PARLEs soft drink
manufacturing Gold Spot under license from PARLE established at Amritsar in the north Indian state of
Punjab.
The Company is engaged in the business of manufacturing, marketing and distribution of aerated water
under franchise agreement with the Coca-Cola Company, USA. The Company has two mega Greenfield
bottling plants for filling soft drinks located at Village Nabipur, District Fatehagarh Sahib (Punjab) and
Village Katha, Baddi, District Solan (HP). Present gross turnover of the company is approx. Rs. 190crores.
The company has also entered the power sector by setting up a 6.25 MW Wind Mill project having 5 units
in the State of Maharashtra.
In 1993, the world renowned soft drink giant - Coca-Cola entered India and bought over PARLE brand of
soft drink products, being one of the star bottlers of PARLE the Group switched to manufacturing, bottling &
marketing of Coke brand of soft drink products.
MISSION :
In line with our main partner coca cola we wish to refresh the world and in
addition we further aim to create value and make a difference by making our
environment a cleaner and a better place to live for our future generation.
VISSION :
Our company vision as was established by the founder of our group remains to
provide the people that work in the group, be it the owners or the managers a
great place to work where people are inspired to be the best they can be and
work with quality brands and partners to maximize profit and productivity.
CEO
(Ashish
sethi)
General
Manager (Eesh
sethi)
VicePresident
(Jaspal
bhatia)
RED head
(Kamal
sharma)
SGA
Manager
(Satinder)
Deputy GM
(Gurdeep
saggu)
Sales
Manager
(Pragraj)
Marketing
Manager
(Mohnish)
Market
Research
Executive
Astt Sales
Manager
(Preeti)
Sr. Sales
Executive
Sales
Supervisor
s
Team
Leaders
Market
developers
Salesman
W
a
t
e
r
is received from the 300 ft. tube-well and it passes through the water treatment plant, further
passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.
In the syrup room, the concentrate received from another bottling plant situated at Pune, is blended
carbonator section where Carbon Dioxide is added to the mixture to form the final product.
On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and
washed for the purpose of filling in the final product in it. This step does not take place in the PET
INGREDIENT DELIVERY
SWEETENER
Team of professionals, work on selecting, auditing, sampling, testing, approving and then authorizing the
sugar suppliers and the list of such authorized suppliers with approved sugar lots and along with the
certificate of analysis are sent across to all the bottling unit for procurement.
SECRET FORMULA
Created in special concentrate plants, its delivered held and used under
strict controls to maintain its integrity and security. Each unit of concentrate
is especially identifiable to allow the History of each component to be
researched at any stage of
production, storage or use.
CO2 FORMULA
When delivered to the plant,
co2
WATER
Since water is a key component to all our beverages, its quality is critical. And since public water quality
varies around the world, each plant further treats the water it uses. This means that before water is added
to any of the beverages, its rigorously filtered and cleansed.
MATERIALS
Ingredients are not the only things delivered to the plant, other materials such as bottles, cans, labels and
packaging are also delivered. Coca cola plants use refillable glass bottles (RGB) in the production process.
When bottles are delivered to the plant, they are carefully inspected to ensure that they meet the exacting
standards. Once these have passed initial inspection, they move on to be washed and rinsed.
this
first
any
then
move to the Hydro wash where they are washed again with a deep cleaning pressure spray.
CO2 ADDING
Adding CO2 or carbon dioxide gas, it is the final touch that carbonates the beverages, CO2 not only give
our beverages their effervescent zest but it also adds to the distinctive and familiar taste everyone has
come to expect from our beverages.
CAPPING
Once filled, bottles are then capped. Company
uses different bottles, glass bottles are usually
topped with a metal. Each cap type then
moves through different parts of the machine
which ensures each cap stays scratch free
and is in the right position to be precisely
placed on the bottle. The process actually
stops if the detector doesnt find a closure. If
the bottle cap isnt just right, the beverages
can become flat or be affected in other ways.
If this happens the bottle is discarded.
CODING
The bottle is now ready to be coded. Each one of the beverages is marked with a special code that
identifies specific information about it. The codes simply identify the data the beverages was bottled. These
codes identify the date, time, batch no. and the MRP.
INSPECTION
Company inspects bottles at many points during
the process. With the refillable bottles, it
happens when they are first brought into the
plant. They are also inspected after they are
washed and again after they are filled.
Inspectors look for external bottle imperfections
and make sure each bottle has the right amount
of beverages. Even after filling, the plant
samples bottles for analysis in its lab to ensure
quality is up to standards.
PACKAGING
Once the filled beverages have passed final inspection, they are ready to be packaged for delivery.
BRANDS IN INDIA:
THUMPS- 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.
RGB
200 ml, 300 ml, 1000 ml
PET
Can
330 ml
2L
RGB
PET
Can
330 ml
World's favorite drinks, the most valuable brand and the most recognizable word across the world after OK.
Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, cricketers
such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past and today, its brand
ambassadors are Aamir Khan and Hrithik Roshan.
RGB
PET
1000ml
2L
Can
330 ml
Lime n' lemony Limca , the drink that can cast a tangy refreshing spell on anyone, anywhere.
Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3
decades. 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 sharp fizz and lemony bite combined with the single minded positioning of the brand as the
ultimate refresher has continuously strengthened the brand franchise. Limca energizes refreshes
and transforms. Dive into the zingy refreshment of Limca and walk away a new person.
RGB
200 ml, 300 ml, 1000 ml
PET
500 ml, 1.5 L,
2L
Can
330 ml
Diet Coke was born in 1982 and quickly became the No. 1 sugar-free drink in dietconscious America. Known as Diet Coke in the U.S., Canada, Australia and Great
Britain, and as Coca-Cola light in other countries, it's now the No. 3 soft drink in
the world.
It's the drink for people who want no calories, but plenty of taste. Ad campaigns
around the world for Diet Coke share a playful, sophisticated and fun-loving
attitude.
Can
330 ml
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 mein Aam, Maaza hain
Naam". Consumers regard Maaza as wholesome, natural, fun drink which delivers the real
experience of fruit.
The current advertising of Maaza positions it as an enabler of fun friendship moments between
moms and kids as moms trust the brand and the kids love its taste. 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".
RGB
Tetra pack
PET
250 ml
200 ml
1.2 L
RGB
300 ml
PET
500 ml, 1.5 L,
2L
Can
330 ml
Orange juice with real orange pulp with this slogan, Coca cola launched its
minute maid brand of orange juices for the first time in the country at Hyderabad.
Though Coca cola India had in its portfolio the highly successful Maaza brand in
the juices segment (which it got from the chouhans), this is the first time the
company is introducing some of the products from its own Minute maid portfolio.
The roll out of the naturally refreshing orange beverage with real pulp has been designed to
extend the Companys market leadership in the juice segment and with this launch; it is expected
to further extend its leadership.
PET
400ML,1.25 L
Water is thirst quencher that refreshes, 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
water governs the lives of the millions, be it as part of everyday rituals or as the monsoon which gives life to
the sub-continent.
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. That is why we introduced Kinley with reverseosmosis along with the latest technology to ensure the purity of our product. That's why we go through
rigorous testing procedures at each and every location where Kinley is produced.
Kinley water
Soda
500ml, 1L
1L
In the company's journey towards the vision 'leading the beverage revolution in India', now even
Garam matlab Coca-Cola A hot new launch from Coca-Cola India
Georgia, quality tea and coffee served from state of the art vending machines is positioned to tap
into the nations biggest beverage category.
Georgia, which promises a great tasting, consistent, hygienic and affordable cuppa is available in
a range of 7 sizzling flavors, adrak, elaichi, masala and plain tea cappuccino, mochaccino and
regular coffee.
Georgia is currently in the roll out stage after a successful launch in Delhi & Kolkata. Georgia aims
to become the consumers preferred choice of hot beverage when he is on the go; the brand is well
on course to achieving its vision.
While Georgia is a mass market offering, Georgia Gold is the premium brand which caters to the
connoisseur. Made from freshly roasted and ground coffee beans, Georgia Gold is delicious
tasting aroma with the tantalizing aroma of fresh coffee. Currently available exclusively at
McDonalds outlets across the country Georgia Gold has driven coffee sales through the roof. The
success of hot beverages from Georgia Gold has resulted in extension into the cold category, with
the introduction of Ice Tea and Cold Coffee.
BCG (BOSTON CONSULTING GROUP) APPROACH
In the BCG approach, a company classifies all its Bus according to the growth share matrix. Coke is one of
the main product lines of the Coca Cola Company. It is the one which is giving maximum revenues to it by
different products in this line. Here we have classified some of its major products in the BCG matrix on the
basis of their fame and liking of the people.
up
BARGAINING POWER OF
BUYERS
Is very high
due to the presence
of various
brands and also
the unorganized sector.
This gives the buyer
EXISTING
a wide variety
COMPETITORS
of brands to
choose from.
Pepsi
Parle
There is additional
pressure from buyer
R.C Cola
to introduce schemes
others
and reduction in cost.
BARGAINING POWER
OF SUPPLIERS
The bargaining power of
suppliers is very low.
As the coca cola company
have developed
captive suppliers
& entered into a contract.
So the company
is not at the mercy
of the suppliers.
SWOT ANALYSIS
Fruit Juices
Water
Lemonade
Local Cola's
Others Cold Beverages
SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the
development of marketing plans. It accomplishes this by assessing an organizations Strength (what an
organization can do) and Weakness (what an organization can not do) in addition to Opportunities
(potential favorable conditions for an organization) and Threats (potential unfavorable condition for an
organization). SWOT
analysis
Retailers
is an important
interested
step in
inplanning
short term
and itsgains.
value is often underestimated despite
Customer feedback system is not effective.
the simplicity
in creation. The
Product availability Distributors give products
role of SWOT
analysis is to take
to specific retailers only when they have limited
customers
CANS are not available.
form internal
(strength and
and external
(opportunities
SWOT analysis
firm in
its objectives
opportunity) and
the obstacles
threats).
inavailable
India. These
are company owned and
to allplants
retailers.
STRENGTH
WEAKNESSES
THREATS
franchised
like Pepsi.
not
Greater
opportunity
in rural areas where coca
Promotional schemes to activate sales
cola CAN gain a substantial base.
company
is should
providing
Chairs,
Company
giveUmbrellas,
more number
of Tables,
racks,
flanges, visicooler
& glasses.
Health
conscious people are
schemes.
Improvement in distribution
channel.
boycotting
drinks.
May
lose
the
market
share to its
beverages
Coca cola can create more
monopoly
by look upon
competitor,
if outlets
they dont
giving heavy discounts the
as brand
demands
image
of and
retailers who
quality speaks itself.
ultimately sell product to the end
Opening new outlets in customer.
convent schools,
Impulse
customers
Hotels and multi activity
channels
,as more bye what ever is
OPPORTUNITY
urbanization
in the offer, so company should give
Improvement in distribution
and in
offerschannel
regularly
Retailers are more inclined towards
bottling plant.
In the present scenario Pepsi
can come
up with
more and good
as better
services
verities in the fruit drink
along with are
more
relationship
being made by them.
Lack of adequate new trends.
flavours.
Future Plan
Effective
service
Increase visibility
by giving more
visi-cooler,
boards, hoarding
to retailers.
Activation
Highest Quality
Wide range of
products is being
available
KANDHARI BEVERAGES
Company Profile
Business Type
Manufacturer / Supplier
EXISTING SYSTEMS
/
C. Acknowledgement:
D. Methodology:
OBJECTIVE OF STUDY:
The main objective of the study was To study the stock keeping units of Coke as compared
to PepsiCo.
Following are the main objectives of the project:
To test the effectiveness of the distribution network
Comparitive study of Coke products availability in the market as compared to the
competitors.
To check the SKU distribution of Coke
Selling and monitor distribution of beverages
To provide useful information regarding SKU availability of the competitor PepsiCo
to the company
To know the suggestive steps that would be beneficial to Coke to improve its
distribution network
IMPORTANCE OF STUDY:
Cold drinks were started with the idea of quenching the thirst of the persons traveling. It was
also felt that reliable good water was not available everywhere. So people would really on
their packed bottle and with this idea its makers made these drinks available mostly, at those
places where water was not available i.e. on highways and long distance trains.
But slowly and slowly with its beautiful taste these become very popular and now they are
available not only in the market and street corners, but also people have started keeping it in
their house.
The credit of popularizing the soft drink goes to Coca Cola. This was the drink which is liked
by all ladies, gents and children. Now days soft drinks are quenching thirst looks more
often; they are taken due to habits.
Gold Sport is considered as the first branded soft drinks, all empowering Coca Cola faced
competitions and its euphoric image built up in the western countries helped it get ready
clientele and clamor. Parle Export Pvt. Ltd. Is regarded as the first Indian Company
introducing Limca a leman drink complementary to it this has also introduced Cola Pep one
which was withdrawn in the face of tough competition from Coca Cola.
When Coca Cola bid a Farwell in 1977, Indian market was open for various new forward
publishing different brands in the markets. This is Indian market where there was no
competition and high voltage advertising was on each one was trying their best to become
number one company with A class product in the field of Soft Drink business. Now after a
long gap government of India had given permission to Coca Cola, which joined with Parle to
do business in India. They are trying their best to regain prestige which it had before. The
much rival of Parle is Pepsi an
7
American concern. It started business on the Indian soil just a few years ago.
Now Pepsi is going all out to prove that they are the best.
the scope which includes the usefulness
of the project, how applicable it is, and how it can be used by the organization for
improved performance.
SCOPE:
The geographical scope of my study is confined to Patna.
The bulls eye is to have a cognizance of the level of satisfaction regarding the
distribution network of PepsiCo product to the depot and retailer.
JOB ASSIGNED
To visit every dealers and retailers store where there is dealing of soft drinks.
To know how many carats of Pepsi and Coke are been used by each dealers and
retailers.
To know SKUs of each dealers and retailers.
To take order of product from retailer.
To check the capacity of chiller of Pepsi and its competitors.
To know type and size of VISI Coolers used by retailers and dealers.
Limitations
Retailers are reluctant to provide the information regarding the sales volume and stock.
Some retailers in were not co-operative in their approach.
Retailers are not fully aware of the new schemes offered by the Company.
Lack of time duration for the proper administration of research as time duration of 60
days was not sufficient for the research.
Lack of financial resources as the researcher has to find his study by his own financial
sources.
Insufficient research experience.
Indifferent behavior of the retailers exhibited at times.
methodology
Achieving accuracy in any research requires in depth study regarding the subject. As the
prime objective of the project is to know stock keeping unit available in market and how
market share of PepsiCo in Patna in term of quantities with the existing competitors in the
market and the impact on Pepsi product. The research methodology adopted is basically
based on primary data via which the most recent and accurate piece of first hand information
could be collected. Secondary data has been used to support primary data wherever needed.
Primary data was collected using the following technique
Questionnaire Method
Observation Method
Target geographic area was Patna ( NIT More, Mhendhru, Gya Ghat, Tripolia,
Nanmuniya More,Sultangang, Shar Sha Road
Finally the collected data and information was analyzed and compiled to
arrive at the conclusion.
Sources of secondary data
Used to obtain information on, PepsiCo and its competitor history, current issues,
policies, procedures etc, wherever required.
Internet
Magazines
Newspaper
Data analysis and finding
SAMPLE SIZE 100 RETAILERS
LOCATION - Patna
( NIT More, Mhendhru, Gya Ghat,
Tripolia, Nanmuniya More,
Sultangang, Shar Sha Road )
In this data interpretation, opening stock is when I have visited first time to take
survey and closing stock is survey taken at the end of project. In middle period of
time 60days I have take order from retailer and delivering the product to retailer.
So that market share of PepsiCo is increase.
Methodology
The selection of the research method is crucial for the conclusions as it affects what we have to
say about the cause and factors influencing the project work. It was important to choose a
research method which was within the limits of what could be done. Time, feasibility, ethics and
availability to measure the phenomenon correctly were issues constraining the project work.
Research was conducted in CHANDIGARH.
Instrument
TWO questionnaires was devised to carry out one for Consumers and other for Retailers
Sources of Data
1.) Primary Sources
The sample consists of students, employees, people on the streets and retailers. Various
measurable factors were identified. Based on these variables, primary sources were identified.
2.) Secondary Sources
It was collected from the employees and HR of the company; they provided few editions of the
annual magazines being published by Kandhari, which really helped in gathering the information.
QUESTIONNAIRE DESIGN
First of all for designing the questionnaire, there are scaling techniques available like:
1) Comparative Scales.
a) Paired Comparison
b) Rank order
c) Constant Sum
d) Other Techniques
2) Non Comparative Scales
a) Continuous Rating Scales
b) Itemized Rating Scales
Likert Scale
Semantic Differential Scale
Staple
Out of all these mentioned techniques for designing the questionnaire, I have opted for Comparative Scale
Technique since this way it becomes much more easy for answering the questions and also the context in
which the questions have been asked, gets delivered across to the other party easily. And thus we can
analyze the responses in a better way.
And to obtain the graphical view of the responses being generated, we have used the Bar graph and Pie
chart analysis, since it also helped in doing justification to the responses being gathered from the sample,
as it again clearly becomes visible that how much percentage of customers agree with which question
being asked and thus accordingly a collective percentage of the participants, really helped us to gather/
conclude our findings in a more effective and an efficient manner
Data Collection:
The data was collected through survey.
Consumers
Number of consumers who were survey 100
Number of responses through email 25
Number of responses obtained by personal interview 75
Retailers
Number of retailer who were survey through personal interview 100
Sampling
Sampling involves selecting units from a population of interest so that by studying the sample one can fairly
generalize the results back to the population from which they were chosen. In the present course work,
convenience sampling was used and an aggregate sample size of 100 consumers was considered.
Sampling technique
Sample Type: Non Probabilistic Convenience sampling was followed. Convenience sampling is
used in exploratory research where the researcher is interested in getting an inexpensive approximation of
the truth. As the name implies, the sample is selected as per the convenience
Sample size: 100
The variables relevant for analysis of data were collected. Various analysis and interpretations have been
shown in graphical and tabular form
REVIEW OF LITERATURE:
Review of Literature indicating the research done so far with regard to the particular
subject.
(3)
. The relevant data gathered should be presented in the form of Tables, graphs, flow
charts etc.
(4). Detailed discussion about the present practices related to the subject. If new
practices/arguments have been introduced, a discussion of the same may be done.
(5). Analysis of the data collected or the effect of the new practices on the existing one.
DATA INTERPRETATION
BRAND
SKU
COKE
PEPSICO
REFERENCES: