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A Project Report of Marketing Strategies and Distribution Channel OF
A Project Report of Marketing Strategies and Distribution Channel OF
A Project Report of Marketing Strategies and Distribution Channel OF
Submitted by:
Tushar Verma
B.COM (HONS)
ENROLLMENT NO.
A7004610054
Under Guidance Of :
1
DECLARATION
I hereby declare that I have carried out Summer Training Project on the topic entitled
I further declare that this project work is based on my original work and no
TUSHAR VERMA
B.COM(HONS.)
2
FACULTY GUIDE CERTIFICATE
This project work is partial fulfillment of the requirement for the degree of Bachelor Of
Commerce Honors from Amity University Lucknow Campus, Uttar Pradesh.
3
STUDENTS CERTIFICATE
Certified that this report is prepared based on the summer internship project undertaken by
me in COCA COLA BEVERAGE PVT LTD. from 15th May 2012 to 30th June 2012,
under the able guidance of Miss. SANA MOID in partial fulfillment of the requirement for
award of degree of Bachelor of Commerce honors B.Com from Amity University, Uttar
Pradesh.
Date:
4
PREFACE
In summer the consumption of soft drinks is more due to hot weather in this time chilled
weather is needed everywhere and every body irrespective of age difference. In the
market peoples not only need water, but they want same taste too. Here comes the need
of soft drinks: it has become an essential part of market as people like it in addition to the
bottles, now days packages of soft drinks i.e. Tin cans. Pet packs of i.e. Litters canisters
and dispensers are introduced to enhance the impact in sales.
practical summer training in any industry for 6 to 8 weeks period. The main objective of
an organization or industry. Candidate tale much help from this training when he get the
job after completed the curriculum in this training candidate get the better opportunity to
in meet the Retailer conjurer, whale sellers dealer by which candidates gain more and
more information about the market. By this practical Experience candidate confident
level is improved. Consequently we can say this training provide better understanding of
5
ACKNOWLEDGEMENT
I would also like to thank all the Executives, distributors & staff of Coca cola who
provided us all the relevant information and their kind support, on the basis of which this
report has been prepared.
6
CONTENTS
CHAPTER 1 10
INTRODUCTION
13
DISTRIBUTION CHANNEL 23
COMPETATIVE ARENA 27
SWOT ANALYSIS 55
CHAPTER 3 60
RESEARCH METHODOLOGY
CHAPTER 4 RECOMMENDATION 79
ANNEXURE QUESTIONNAIRE 81
BIBLIOGRAPHY 83
LIST OF FIGURES
7
Page no.
Figure 1 15
Figure 2 21
Figure 3 39
Figure 4 39
Figure 5 40
Figure 6 41
Figure 7 41
Figure 8 42
Figure 9 43
Figure 10 43
Figure 11 43
Figure 12 44
Figure 13 44
Figure 14 44
Figure 15 45
Figure 16 46
Figure 17 67
Figure 18 68
Figure 19 70
Figure 20 71
Figure 21 72
Figure 22 72
Figure 23 73
Figure 24 74
Figure 25 75
Figure 26 76
Figure 27 77
Figure 28 78
LIST OF TABLES
Page no.
Table 1 16
Table 2 16
Table 3 45
8
CHAPTER 1
Introduction
9
Modern age is full of competition. Today only way of success is your continuous efforts
towards the growing market needs and in satisfying them. It is the marketer job to know
what the market speaks i.e. the ever changing needs of the customer through market
research & adopt them fruitfully. It is must for all the companies to make policies
according to the customers and the govt. Today to succeed for any organization has to
target its customer needs, to create a culture in the organization i.e. market conscious &
responsive to customer needs. Soft drinks industry has become big business in India in
recent years.
The soft drink business under went major change with the entry of PEPSI and re-entry of
COCA-COLA in India in the late 80s when Parley with brands like Thumps, Limca &
Gold spot was a clear leader. Coca-Cola took up the product line of parley in 1993-94;
today both brands are the Indians favorite soft drinks.
HISTORY OF COLA
10
The cola industry has phenomenal possibilities for rocketing profit growth inspite of the
sign of relief heaved by the manufacture at the abrupt sensational termination of coca
cola monopoly the tastes of cola is by no means extinguished the coca. Cola have a status
symbol to it..., generated by the sub standard, penetrated, advertising and extensive
distribution network.
Total soft drink segment is growing at the rate of 10% per year still if international
standard area considered the per capita consumption of three serving in rock bottom, less
than even our neighbors Pakistan and Bangladesh, where it is four more as much. So with
kind of a market potential coke entered in India in 1991 after the permissions of setting
up Britico Food company to coke was granted by the government in Pune in 1992 the
plant was established for is deducted then the bottle are taken out of the line and cleaned
again or rejected.
The most important step is the mixing of drink concentrate dissolved in the soft water the
sugar syrup at the same time. Carbon dioxide is passed in the drink to produce a fizz.
After the crowing of the bottle the crown contains the manufacturing data batch number
and Time.
After crowing the bottle, the bottle comes again at checking screen for checking the
bottle.
11
CHAPTER 2
12
Coca cola is a world leader in beverages, with revenues of about $35 billion and over
180,000 employees. The company consists of the snack business of Frito-Lay North
America and the beverage and food businesses of Coca cola Beverages and Foods, which
includes Coca cola Beverages North America (Cola North America and
Gatorade/Tropicana North America) and Quaker Foods North America. Coca-cola
International includes the coffee businesses of Frito-Lay International and beverage
businesses of Coca-cola Beverages International. Coca-cola brands are available in nearly
200 countries and territories.
Many of Coca-cola brand names are over 100-years-old, but the corporation is relatively
young. Coca-cola was founded in 1923 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company,
including Gatorade, in 2001.
The beverages segment primarily market Pepsi diet, mountain dew and other brands
worldwide and 7UP outside the U.S. market. They are positioned in close competition
with Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit
from international operation while same figure of Pepsi co. stand at 6%, the segment is
also in the bottling plants and distribution facilities.
The restaurant segment primarily consists of the operations of the worldwide pizza hut,
Taco Bell and KFC. Long time no.2 player in the cola wars, Pepsi co. is widening the
play field, over the last years; the company has invested more than $2billion in its
worldwide operations.
When Coca-Cola changed its formula in 1985, Pepsi stepped up its competition with its
long time archival claiming victory in the cola wars. Coke and Pepsi expanded their
rivalry to tea in 1991 when Pepsi formed a venture with #1 Lipton in response to cokes
announced venture with nestle (Nestea) it has won over 30% of the ready to drink tea
market, a part of the so called new age beverages segment.
The beverage industry has witness the phenomenal growth over the last few years
necessitating capacity increase and builds up of commensurate infrastructure to meet the
business growth, which is accordingly matched.
13
Mission of the Company:
Continuously excel to achieve and maintain leadership position in the chosen businesses;
and delight all stakeholders by making economic value additions in all corporate
functions. Coca-Cola bottling plant opens in 1950 in New Delhi, operated by pure drinks
Ltd. In 1951 Bombay plant opens, also operated by pure drinks Ltd. In 1953 and 1954
Calcutta & Kanpur bottling plant opens cont. 1973 was the time when 22 bottling plant
operated in 13
States. In 1978 Coca-Cola withdraws Indian operations.
BUSINESS SEGMENTS
14
The KO Group is divided into three-business segments- Beverage, Food and Education.
It has a leading market position in each of its three business segments. Our balanced
portfolio produced a solid business performance. Products and services, which look to the
future, ensure that we will be well placed in growth markets.
FIGURE 1
TYPES OF COOLERS
2 cacs
4 cacs.
7 cacs
9 cacs
11 cacs
20 cacs
30 cacs
RATE
LIST-2010
15
Brand Basic Rate Amt.Vat charge @ Total
12.5 %
16
200 ML 149.33 18.67 168.00
300 ML 190.22 23.78 214.00
SD 300 129.78 16.22 146.00
ML
SD 500 224.00 28.00 252.00
ML
600 ML 394.67 49.33 444.00
1.25 LTR 337.78 42.22 380.00
2 LTR 364.44 45.56 410.00
DT 330 444.44 55.56 500.00
ML
330 ML 444.44 55.56 500.00
KIN 144.00 18.00 162.00
500ML
KIN 1 LIT 97.78 12.22 110.00
TABLE 1
17
FRUIT
JUICE
Brand Basic Amt.Vat Charges @ 4 % Total
Rate
MZ 200 ML 278.85 11.15 290.00
MZ 250 ML 205.77 8.23 214.00
MZ 600 ML 530.77 21.23 552.00
MZ 1200 ML 480.77 19.23 500.00
MMPO 400 ML 509.62 20.38 530.00
MMPO 1.2 LTR 600.96 24.04 625.00
TABLE 2
18
OBJECTIVE
19
Coca-Cola entry in India
Coca-Cola bottling plant opens in 1950 in New Delhi, operated by pure drinks Ltd. In
1951 Bombay plant opens, also operated by pure drinks Ltd. In 1953 and 1954 Calcutta
& Kanpur bottling plant opens cont. 1973 was the time when 22 bottling plant operated in
13States. In 1978 Coca-Cola withdraws Indian operations.
Coca-Cola buys a no. of bottlers in India. Integration of all bottling units into 1
pan India Company bottler, HCCBPL in 1997-1999. In July 2005 HCCBPL becomes a
separate bottling entity (CBO) reporting in bottling investment group (BIG), Atlanta.
20
THE PRESENT POSITION OF COKE IN INDIA
Coke is a house holds name and is the lips of every one. In present time every person
knows the name of coca cola since India is one of biggest market and sultry summer from
March the end of October and huge population has immensely helped in the sales the
sales of coke in India and its making it more economical.
Last years, the market share of Coca Cola was not specific. In this year companys top
management adopted new policy and decreased the rate of all brands of coke. By this
decision top management determined the rate of 300 ml / 7Rs. And they made a new
brand of 200 ml determine the rate of this brand 5Rs. By which medium size family and
lower level family can be taken the enjoy of coke. By this decision companys marketing
share has been increased.
In present time coke is captured approximate 70% market share in cold Dinks line. Now
coke has defeated all the soft drinks company. According to service and according to
advertising coke has appropriate position.
It has now emerged as the winner and has a good image in the market.
Coke has even sponsored the wills cricket world cup 96 at an estimated cost of 26 corers.
21
ORGANIZATION STRUCTURE
FIGURE 2
22
PRODUCTION PROCESS OF SOFT DRINK
The production process is highly mechanical is and automatic the raw material required
for soft drink are concrete sugar syrup and treated bottled the entire process take in the
following steps.
The first step in the production involves conversion of hard water in the soft water.
The next step is the preparation of sugar syrup in the plant itself the content of the syrup
various according to the brand prepared the syrup at most can be stored for 4 hours.
Then the bottle is cleaned thoroughly before is done with steam water jets and caustic
soda.
Bottle are then moved on a conveyor belt in a line and are closely examined in case some
impurity is left. It the impurity the concentrate coke is not a now product for the Indian it
was there in India till 1977 but had to leave India on mass demonstration led against it,
instigated by the local brands it was leaded by Mr. George Fernandes in Agrain UP so
when the program of re-launching was made, it was again (where it was made o leave the
country), on the 24th October 1993 in order to a strong hold in the Indian market, it signed
a pact with Mr. Ramesh Chauhan of Parle exports. Thumps Up, Limca, Gold Spot, Citra,
Maaza, Bisleri Club Soda etc. at a cost of $40 million by doing so they gripped the Indian
market of soft drinks and captured 65% of the entire soft drinks much that the
competition was tougher and commodities was of the same standard. So the going was
tougher, but still it has managed to gain and keep in.
23
DISTRIBUTION CHANNEL
Distribution means supply of goods from company to its ultimate user. After
manufacturing the product the important work for the is to provide its goods to its
ultimate user at the right time and when manufacturing process has been over. Than
marketing work will be start by the marketing Department adopt the policy for providing
goods to the consumer at the right time and place. Distribution means the way be which
the product reach to the hand of consumer these all process comes under the Distribution
of Network. Good distribution network is essential for more sailing and customer
satisfaction. If customer or retailer is not satisfy of your distribution net work. It reflect
that companys Distribution is not good and some thing is wrong any when.
The Distribution of Coca Cola of best. Company dont want to take any type
of risk so they have made the distributor in different 2 areas. Distributor take
the flavors from the company and deposit all the payment in advance by this
process company get all the money at the right time. Distributors establish
all the goods in bare house company are appointed 2 or 3 executive for
marketing. Executives are getting the salary from company. But sales man
helper, loader, appointed by the Distributor. Distributor is liable to give the
salary to the sales man helper; loader and clerk the sales man do the work
under the pressure of Executive.
From the bare house company launch the flavors in the market. The flavor reaches in the
market to the retailer by two medium.
1) By the company vehicle
2) Dealer
Company vehicle and dealers both provided the flavors to the Retailer.
24
Retailer sales the flavor to the consumer. This is the good marketing strategy.
25
SOFT DRINK MARKET IN INDIA
Today India is one of the most potential markets, with population of around 900 million
people, the Indian soft drinks market was only of 200 cases per year. This was very low
even compared to Pakistan and Philippines. Population and potential market are two
major reasons for major multinational companies of entering India. They feel that a huge
population coupled with low consumption can only lead to an increase in the soft drink
market. Another increase in the sale of soft drinks in the scorching heat and the climate of
India, which is suitable for high sale of soft drinks. All these factors together have
contributed to a 30% growth in the soft drinks industry. If the demand continues growing
at the same rate, within two years the volume could touch 1 billion cases. All these
factors are the reasons for the entry two giant of the soft drink industry of the world to
enter the Indian market. These two giants Pepsi and Coca-Cola, Themselves share 96% of
the soft drink market share. Rest is shared by Cadburys Schweppes, Campa Cola and
other soft drink brands. But was the scene same 20 years ago? The answer is No. 1970
was the year of pure soft drinks Campa cola and Parle people (Thumps up and Limca).
Soft drink consists of a flavor base, sweetener and carbonated water. In general terms
non-alcoholic drinks are considered as soft drinks this name soft drink was given by
Americans as against hard which is mainly alcoholic.
Retail channel. Concentrate producers manufacture basic soft drink flavors and retail
channel refers to business location that tells or serves the products directly to consumers.
Soft drink is not a product, which a person plans to buy before hand, but is an impulse
purchase. Lots of sale depends upon the strength of merchandizing done at the point of
sale.
26
It all begin in 1977, a change in government at the center led the exit of coca-cola which
preferred to quit rather to dilute its equity to 40% in compliance with the Foreign
Exchange Regulation Act (FERA). The first national cola drink to pop up was double
seven. In the meantime, Pure Drinks, Delhi on cokes exit, switched over to Campa Cola.
The beginning of 1980s saw the birth of another cola drink, Thumps up, Parle the Gold
spot people, launched it in 1978-79, as Refreshing Cola. By the mid-eighties Mc
Dowells launched Thrill, and by the late eighties there was Double Cola, which entered in
India market, as a NRO-run out fit with its plant in Nasik { Maharastra }, in 1978 Parle,
Indian soft drinks market (share 33%) with its gold spot and Limca brands. Later
Thumps Up also started Thumps Up. At the same time the threat to the Indian soft drinks
was that of fruit drinks. In 1988, fruit drinks market was valued at Rs. 40 corers and grew
at the rate 20%.
Coca-Cola entered Indian by buying up to 69% of the 1,800 corer soft drink market { i.e.
5 Parle Export brands of Thumps Ups Limca Gold spot, Citra & Maaza }.Today the
scene has changed making it a direct battle between two giant Coca-Cola and Pepsi. The
picture will become clearer by looking at the India market shares in the beverage
industry.
One of the strongest weapons in Coke armory is the flexibility it has empowered its
people with. In Coke every employee, may he be a manager or salesman, have an
authority to take whatever steps he or she feels will make the consumers aware of the
brand and increase its consumption. Thus Coke believes in establishing and nurturing
creditability of the salesman and making commitment to grow business in accounts. All
these factors together led to a high growth in the Indian market and constantly increasing
market share.
27
COMPETITIVE ARENA
The soft drink market all over the world has been witnessing a neck to neck battle
between the two major players, Coca-Cola and Pepsi since the very beginning. The thirst
quenchers are trying hard to have the major chunk of the pie of carbonated soft drink
market. Both the players are spending their energies in building capacity, infrastructure,
promotional activities etc.
Coca-Cola being 11 years older than Pepsi has dominated the scene in most of the soft
drink markets in the world and enjoying leadership in terms of market share. But the
Coca-Cola people are finding it hard to keep away Pepsi, which has been narrowing the
gaps regularly. The two are posing threats to each other in every nook and corner of the
world. While Coca-Cola has been earning most of its bread and butter through beverage
sales, Pepsi has a multi products portfolio with some portion from the same business.
The two warriors are face to face once again here in India with different strategies and
tactics to attack the rival. Coca-cola is focusing upon the joint ventures with the existing
bottlers { fobo } franchise owned bottling operations to enhance its control on
manufacturing and marketing of its products range and attain the quality standards of its
class.
Countering it Pepsi has taken the battle in its own hands by floating as investment of $ 95
billion to set Pepsi Company. India holdings, as subsidiary for {cobo} company owned
bottling operations. Both the companies are following different path to reach the same
destiny i.e. to fetch the bigger portion of aerated soft drink market. Both consider India a
huge potential market, as per capita consumption here is a mere 3 serving annually
against the world average of 80. Therefore, they are putting in their best efforts to woo
the Indian consumer who has to work for 1.5 hours to buy a bottle of soft drink. In
comparison to the international norms minutes, a major hurdle to cross over for both the
athletes for getting no.1 position comparison to the inter. Coca-cola is well set with its 53
bottling sites through out the country giving it an edge over competition by processing a
well-built bottling and distribution set-up. On the other hand, Pepsi, with two more years
in india, has been able to set an image of a winner in India and has been able to get the
pulse of the India soft drink market. The soft drink giants are leaving on stone unturned
and her for the long terms.
Coca-cola has been penetrating the market through its wide product range with a
determination to change consumption pattern
of soft drink in India. Firstly, they upgraded the whole industry by introduction 300 ml
bottles, which in turn had given the industry a booming growth of 20% as compared to
the earlier 5%. They want to develop a coca culture here and are working on a strategy to
offer soft drink in every possible package. In coca-cola camp, the idea of competition has
not come from Pepsi, but from the other beverages such as tea, coffee, nimbu pani, water
28
etc. Pepsi is quite aggressive in its approach to Indian consumer. They are desperately
working on the strategy to be winners in the hot cola war between two big barons.
According to Pepsi philosophy, its the madness that encourages executive to think, to
conjure up those creative tactics to knock the fizz out their competition. Pepsi had
plumbed a large on the visibility of its blue red and white logo. They have been going
with aggressive marketing by putting Amir Khan, Akshay Kumar and their
advertisement to endorse their brand, the role models for its targeted consumer the
teenagers. They have increased the fizz in the market place by introducing the dispensers
called fountain Pepsi and has been enjoying a lead over its rival there.
Coca-cola on the other hand, has been working on the saying slow and steady wins the
races side by retailing to every more of its competitor. They have procured the shield of
thumps up with a handsome market share in Indian soft drink market.
Countering Pepsis international commercial that used two chimpanzees to cock a snoop
at coke, thumps up come with the ad line, dont be Bandar, and taste the thunder. Also
thumps up has been positioned now very near to that young image of Pepsi and giving it
a though time.
These cool merchants have put everything on fire. It coke got the status of the official
drink of wills. World cup, Pepsi blushed as nothing official about it. As thumps up
projected as saaree jahan se achcha Pepsi was passionate enough with freedom to be
and now the yeh dil mange more when thumps up came with thunder blast, the other
offered Pepsi stuff card. If red is meant for coke, Pepsi has chosen to be blue.
29
COKES MARKETING STRATEGIES
Coke decides on its marketing strategies at a national level and lends them a local flavor.
For example, while festival mood plays a strong role in marketing, it is activated for
Durga Puja in Calcutta, Dandiya in Gujarat, etc., Coke has its focus on the youth market
in India.
As a first step toward catching the attention of the youth, coke signed on cricket heroes
Saurav Ganguly and Javagal Srinath. It slowly started talking about youth passions like
cricket, films, festivals and food. Soon the advertisements started giving the message,
Eat Cricket, Sleep Cricket, Drink only Coca-Cola And now it has started modifying
film hits to frame catch lines that appeal to the youth. This particular strategy has worked
well for coke.
Coke is focused on distribution to ensure that its products are within customers reach.
And it saves its focus has begun to pay it dividends. As per mid-1998 figures coke is
selling as many bottles in the hinterland of Punjab as it does the four metros.
30
THE FUTURE OF COCA COLA
While doing business overseas offers coke wonderful growth opportunities it also has its
own disadvantages. The economic slowdown in various overseas markets and the strong
dollar had their impact on coca-cola revenues and bottom line in 1998. But the company
optimistic about the future.
M Douglas Investor, the Chief Executive Officer of the Coca-Cola Company says, This
past year 1998 has been a challenging period for the Coca-Cola Company as economic
environment became more uncertain in the later part of 1998, we strongly believe that our
fundamental opportunities for long term growth have not changed.
As long as maximization of share holder wealth remain Cokes focus for its future is
assured Goizueta had stated and proven to the world that focus on shareholder wealth
does more good to the company than focus on revenues and it is not that coke does not
enjoy volumes for it is worlds No.1 soft drink manufacture. It is not content with this
title and is aiming at higher volumes year after year. Surely coke will continue to grow.
Point on Roberto had reduced the company basically to its trademark and the returns are
so astronomical as to be off the boards. It just absolutely added a jet engine to their
performance.
31
COCA COLA GLOBALIZATION STRATEGIES
The coca-cola company is global player and approximately 70 % of its volume and 80 %
of its profit come from outside the United States of America. Although it was perceived
as a standardized brand across the world, coca-cola had been quietly fine turning its
international marketing strategies to suit the needs of individual national markets. Only
the brand coca-cola, sprite and fanta were marketed globally. In Latin America and
Europe, where a heavy consumer preference existed for lemon lime and orange sodas.
Coke had developed a wide range of formulations and flavors to cater the needs of
different countries. In ei salvador and venezuela, a version of fanta called fanta kolita a
cream soda type of drink became extremely popular. Similarly, in indonesia coke had
been selling pineapple and banana limca, maaza and thumps up in 1993.
32
A 100 YEARS OF THE CURVY GLASS BOTTLE OF COCA COLA
Joseph whitehead and benjamin thomas offered coca-cola company owner asia candler a
dollar for the right to bottle soft drinks in 1899. Today 1 billion soft drinks are sold each
day in more than 200 countries around the world.
Candler had purchase what would become the cola company for $2,300 eight years
earlier from john pemberton, an atlanta phamacist who astonished the world.
Candler though the bottling venture would never succeed, but he signed the contract with
white head and thomas any way, and the rest is history, bob lovell, vice president of
marketing for coca-cola bottling company. United inc., said in telephone interview from
chattanooga.
Lovell said thomas had seen cuban fields hand drinking pina fria a pineapple beverages,
from bottles while he was Stationed in Cuba during Spanish American war. When he
returned to Chattanooga, he decided to pitch the idea of bottle soft drinks to coke, which
was then sold only as a fountain beverage.
it occurred to him that coca-cola in bottles would be very popular, Lovell said, Mr.
Candler did not see any future in it because the containers were not sound, but thats how
it all came about. Thomas and whitehead promised to pay one dollar for the right to
33
COKES BOTTLING STRATEGIES
In the soft drink business the bottlers are responsible significant extent for ensuring the
availability of the products. Bottlers are supplied with concentrate to which they add
aerated water and bother ingredients before packing and sealing either cans or bottles.
Bottlers play a strategic role in the success of soft drinks companies and this was not far
from Goizuetas mind.
In 1986 the company merged some of its company owned bottling operations with two
large ownership groups that had been put up for sale. All these bottling activities were
combined to from its own subsidiary Coca-Cola Enterprises (CCE) to handle bottling
operations. The Coca-Cola Company took 49 percent equity stake in Coca-Cola
Enterprises enabling it to retain its own balance sheet.
34
PROMOTION : THE COCA-COLA WAY
Grocery shopping
Other shopping & services
Eating and drinking
Entertainment / Recreation / Leisure
Travel / Transportation / Hospitality
Educational
At Work
The 3As:-
The strategy for reaching in creasing numbers of consumers in India is based on the
belief that consumers will buy our products it they are Available, Affordable and
Acceptable.
35
The 3As is Coca-Cola underlying strategy for meeting its goal to reach increasing
numbers of consumers. How does coke position its limited resources to help meet its
good? Let us explore the specific ways in which the Coca-Cola system addresses each of
the 3As:-
Availability
Some of the ways in which the Coca-Cola Company hopes to increase availability of its
product include improved or innovative packaging, dispensing systems, distributions
system and marketing.
Affordability
The ways to address affordability include pricing decisions, as well as resource
management. To make its product available at a price affordable to the consumer.
Continually processes more efficient and therefore more cost-effective.
Acceptability
Making coca-cola brand products the beverage choice for any occasions depends on a
variety of strategies to reach the target audience. The common strategies adapted to effect
acceptability were though sponsorships, promotion youth market activities, community
programs, and other activates.
36
DISTRIBUTION IN THE COCA-COLA SYSTEM
Distribution
Distribution sales + delivery + merchandising + local account management.
Distribution of Cokes products includes the activities of sales, delivery merchandizing
and local accounts management. These are two major types of distribution systems:-
37
With direct distribution there are two types of sales:-
Advanced sales and conventional sales.
In conventional sales, all the distribution activities (Sales, Delivery, Merchandizing and
Local Accounts Management) are performed by the same persons.
In advanced sales, sales and delivery are performed by different people within the coca-
cola system.
Merchandizing
One the products are delivered to the customers they are promoted at the point-of-
purchase to maximize the companys sales opportunities, merchandizing involves looking
at the presentation of the products through the eyes of the consumers. It is an on-going
process that help the company present its products properly to the consumers in the
market place for instance, is the display attractive? Are the product neatly organized.
38
Just after independence, the maharaja of patiala oversaw his coca-cola hoarding from his
huge, ornate palace, coca-cola export representative frank harrold, was awed by the
maharajas opulent life style. In 1993 after coca-cola returned to India after a 16 year
absence (George fernandes threw the company out of the country in 1977 on the pre text
that it had refuse to divalge its formula to indian officials), ceo of the coca-cola company,
robes to boirueta salivated over a virtually untapped market of 840 million people.
39
MAAZA
WITH THE REAL FRUIT TASTE KIDS LOVE, PLUS ADDED CALCIUM, MAAZAS
TAGLINE, YAARI-DOSTI TAAZA MAAZA MEANS FRIENDSHIP MOMENTS
WITH FRESH
FIGURE 3
MAAZA IN HINDI.
Maaza was introduced in India in 1984 as a non-carbonated mango fruit drink. It was
acquired by The Coca-Cola Company in 1993 and is currently available in three flavors,
mango, pineapple and orange, plus added calcium.
Maaza manufacturing unit is located in Najibabad which is delivering in all over Western
and East U.P. through that Najibabad manufacturing unit become Maaza is a fifth largest
selling brand of Coca-Cola. Maaza has mango fruit test its flavour introducing before
Sliece Pepsi Copy its.
SPRITE
FIGURE 4
40
CLEAR, CRISP, REFRESHING
Introduced in 1960, Sprite is the worlds leading lemon-lime flavored soft drink. Sprite is
sold in more than 190 countries and ranks as the No. 4 soft drink worldwide, with a
strong appeal to young people.
Millions of people enjoy Sprite because of its crisp, clean taste that really quenches your
thirst. But Sprite also has an honest, straightforward attitude about things that sets it apart
from other soft drinks. Sprite encourages you to be true to who you are and to obey your
thirst.
According to survey for it has found out that Sprite is a lemon-lime flavored soft drink. I
asked about Sprite brand then I found out that when not available Limca brand of Retail
outlet then customer or consumer demand to Sprite brand through all over region survey
gone on statement Sprite is fourth largest selling brand of Coca-Cola in Ghaziabad.
THUMS UP
FIGURE 5
A THUMP UP IS a leading carbonated soft drink and most trusted brand in India.
Originally introduced in 1977, Thumps Up was acquired by The Coca-Cola Company in
1993.
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Thums up is known for its strong, fizzy taste and confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the men from the boys .
Its tag line says it all: Thumps Up, I Want My Thunder.
Thumps Up is a number one largest selling brand of Coca-Cola in Ghaziabad region
urban area only in Ghaziabad rural and semi-urban areas are second largest selling brand
after PEPSI because they are aware Thumps Up brand that what has extra entity in
Thumps Up.
FIGURE 6
No. 1 sugar-free drink in diet-conscious America. Known as Diet Coke in the U.S.,
Canada, Australia and Great Britain, and as Coca-Cola light in other countries, its now
the No. 3 soft drink in the world. Its 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 sexy attitude. Visit our Audio/Video Center to witness how the diet
Coke North American ad campaign celebrates the real and human attributes that make
people alluring in the eyes of others.
COCA-COLA
FIGURE 7
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Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the
best-known product in the world. Created in Atlanta, Georgia by Dr. John S. Pemberton,
Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with
carbonated water. Coca-Cola was registered as a trademark in 1887 and by 1895 Coca-
Cola was being sold in every state and territory in the United States. In 1899, the
company began franchised bottling operations in the United States.
Today, you can find Coca-Cola in virtually every part of the world. The Coca-Cola
Company has nearly 400 beverages in its portfolio. Today you can find Coca-Cola in
each and every area of Ghaziabad region early because Coca-Cola is a largest number
one brand among all soft drink brand so its known as that thunda matlab Coca-Cola that
if I would like drink thunda only Coca-Cola.
FANTA
FIGURE 8
A favorite in Europe since the 1940s, Fanta was acquired by The Coca-Cola Company in
1960. Fanta Orange is the core flavor, representing about 70% of sales, but other citrus
and fruit flavors have their own solid fan base. Consumers around the world, particularly
teens, fondly associate Fanta with happiness and special times with friends and family.
This positive imagery is driven by the brands fun, playful personality, which goes hand
in hand with the bright color (particularly orange), bold fruit taste, and tingly carbonation.
Fanta sells best in Brazil, Germany, Spain, Japan, Italy and Argentina. Fanta distribution
was increased in the U.S. in 2001 with the return of four flavors: orange,
strawberry,pineapple and grape. Orange, the biggest seller, is now available in most of the
country .
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DIET COKE
FIGURE 9
The extension of coca-cola name began in 1982 with the introduction of diet coke (also
called coca-cola light in some countries). diet coke quickly became the number one
selling low-calories soft drink.
LIMCA
FIGURE 10
this is thirst-quenching beverage features a fresh and light lemon-lime taste and
lighthearted attitute. the limca brand was introduced in 1971 and acquired by the coca-
cola company in 1993.
KINLEY WATER
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FIGURE 11
SUNFILL
FIGURE 12
This is thirst-quenching beverage features a fresh and light orange taste and lighthearted
attitude.
VANILA
FIGURE 13
Tt is an ice cream in taste.launched in 200
MMPO
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FIGURE 14
it is the orage juice flavour. it was launched in 2008. in thiS year it reaches its highest
sale.
THE MOST PREFERRED BRAND OF COKE
LIKE BY CUSTOMER
FIGURE 15
During the survey I asked the customer about the brand preference and I found that
maximum number of retailers prefer Thumpsup
TABLE 3
46
REASON FOR HIGH DEMAND OF
COKE
35
30
25
20
15
10
5
FIGURE 16
Interviewing is an art and one learns it by experience. However, the following points may
be kept in view by an interviewer for eliciting the desired information:
(1) Interviewer must plan in advance and should fully know the problem under
consideration. He must choose a suitable time and place so that the interviewee
may be at ease during the interview period. For this purpose some knowledge of
the daily routine of the interviewee is essential.
(2) Interviewers approach must be friendly and informal. Initially friendly greetings
in accordance with the cultural pattern of the interviewee should be exchanged
and then the purpose of the interview should be explained.
47
(3) All possible effort should be made to establish proper rapport with the
interviewee; people are motivated to communicate when the atmosphere is
favourable.
(4) Interviewer must now that ability to listen with understudying respect and
curiosity is the gateway to communication, and hence must act accordingly during
the interview. For all this, the interviews must be intelligent and must be a man
with self-restraint and self discipline.
(5) To the extent possible there should be a free-flowing interview and the questions
must be well phrased in order to have full cooperation of the interviewee. But the
interviewer must control the course of the interview in accordance with the
objective of the study.
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SALESMEN
Conventional Route Salesmen carries ready stocks in vehicles and sells it to retailers on
his route. Characteristics of conventional routes:
Salesman visits the outlets without a proper PJP
Has the responsibility of driving which includes following traffic rules , finding
place to place to park in congested market places , sell the products
And collect cash & glass.
Communicates schemes and handles cash himself which given him the
opportunity to manipulates with discounts.
Salesman is un-educated, with his primary qualification being a driving license.
Very low vehicles capacity utilization.
Companys span of control till distributor
SKUs loaded on truck is only an estimate leading to shortage in brand/packs in
the market.
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WHAT IS PRE-SELL?
Pre-sell A selling technology in which the selling process has two distinct parts:
Generating order selling the order and delivering the pre-sold order .It segregates the
front-end and back-end process of selling.
WHY PRE-SELL?
Improved execution
Reduced manpower through better utilization of MD resources
Increased vehicle utilization (90%+)
Reduced costs
Improved BPPC Control-Focus on profitable packs and right BPPC
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REQUISITES FOR LAUNCHING PRE-SELL
1. DAS operation is a must.
marked.
PRINCIPLES
1. Pre-Seller can be a current Route salesman or a market developer.
2. All pre-sellers are hired by HCCB & paid through a 3 rd
party.
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IMPLEMENTING PRE-SELL METHODOLOGY
RE-Organizing the routes
1. List all outlets. The listing will provide all the necessary
information.
2. Identify outlets that should be on Pre-sell beats & form
geographical clusters.
3. Convert these clusters into Pre-sell beats , using the beat
planning format
4. Prepare walking order Route Plan for Pre-sellers for the beats
assigned to him.
5. And Remember to ensure:
One Pre-sell beat should have 30-35 outlets.
Check available time through the beat planning format.
ASSIGNING MANPOWER
For Pre-sell we need the following:
1. Pre-Seller for generating the order and market execution.
52
BUILDING BACK-END SUPPORT
1. DELIEVERY PROCESS
1 cluster of 3-4 pre-sellers.
Volume & no. of outlets for every cluster will be derived.
2. VEHICLES
Collect and analyses data related to vehicles utilization
over a period of 6-8 months after Pre-sell is launched.
Re-align the fleets as per the analysis.
TRAINING OF PRE-SELLERS
Training for MD, Pre-sellers must cover how to take order,
and suggestive selling after executing the outlet.
Training for salesman Pre-sellers must include how to execute
an outlet before taking orders through suggestive selling.
Training will be first organized for MD converted Pre-sellers.
The Salesman converted Pre-sellers will be trained later on.
53
Plan the phasing as per the number of STLs / trainers you
have.
CAUTION
1. There might be cases where in some retailers return stock due
to various reasons :-
Does not have money.
Father gave the order but son present at shop during
delivery of stocks.
Estimated the order wrongly now wants to change the
stock.
54
VISION
The long term vision of Coca-Cola in India is to
provide exceptional strategic lead to the Coca-Cola in
India.
Through Coca-Cola system resulting in consumer &
customer preference and loyalty through Coca-cola is
commitment to them and in a highly profitable Coca-
Cola Corporate branded beverage system.
MISSION
The mission of Coca-Cola in India is:
Increase in shareholders value over time.
To achieve the above by working with business
partners to deliver satisfaction and value to
customers through world wide system of superior
brand and services thus increasing the brand equity.
To achieve the mission the company seeks the
contribution from each of the given areas:-
1. People working in the company.
2. Commitment of the company.
3. Goals & objectives of the company.
4. Environmental polices.
5. Internal control.
55
SWOT ANALYSIS
STRENGTH
Company product having a good brand name and trade mark. So that there is no such
problem for convenes the user.
Being a franchise company product trade mark. Thats why its scope is worldwide.
Coca cola capturing near about 69% market in cold drinks line remaining 31%
captured by its main competitor Pepsi. The reason behind that good supply and its all
flavor like Thumsup, Limca, Fanta, Maaza and Sprite also asked by the user in
Sahibabad Area.
Coca Cola good Brand Image not only in India rather all over the world. Thats why
there is no need of Advertisement.
Company having expert management so that company can provides better goods &
service for the ultimate user.
WEAKNESS
The main weakness of the company is that company is not in position of provide all
flavors to the customer daily or at a one time.
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Customer is not happy from company marketing policy. He wants company will start
special discount program or increase maximum retail price.
Most of the retailers problem is that no. company person comes at the shop for
listening the problem.
Company top management not declare the scheme before one or two days. Thats
why scheme catalogue not prepared by the lower level management. In this way
retailers are not satisfy for company policy.
Company management is not doing any thing for retailer. If management is not
provide any relief then he will increase M.R.P.
OPPORTUNITY
Company can increase his product selling by increasing plant capacity and
manufacturing capacity.
Being a seasonal selling product provide all the flavor to the customer in hot session
very necessary. It is the opportunity for the company.
By providing better goods & services company can increase his market share.
In present now the competitors are very less so that company can compromise its
main competitor Pepsi and can take maximum profit.
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THREAT
Company should do something for customer interest. Providing beneficial scheme
and good relation to customer other wise its other competitor will develop and they
will capture its market.
Cold Drinks selling is very much depend on customer or retailer so that retailer is not
happy than sale can be effected in future.
In this time only two or three competitor are existing in the market. In the future the
competitor can increase. So that company should prepare some future plan for
maintaining its market share.
Some domestic competitor can develop in the market. Company should prepare long
term future plan for permanently existing in Host Country.
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59
COCA-COLA BEVERAGE PVT. LTD
In the network of the Coca-Cola system, Coca-Cola has either of the two bottling
operation done for the company.
1. COBO (Company Owned & Operated Bottling
Operation).
2. FOBO (Franchise Owned & Operated Bottling
Operation).
After 1993, when Coca-Cola re-enters India market, done a lot of changes in existing
system of soft drink market prevailing in India, by acquiring the major brands and the
bottling operations from Parle. After this company founded some of its own bottling
operation in India.
In year 1997, company did a major investment of $700 million in India by purchasing
other bottling operations, all around India and introduces new technology in them. These
bottling plants are called Company Owned and Operation Bottling Operation. Company
has full ownership and operational right for these types of operations. The other type of
bottling operation for the company are called Franchise Owned and Operated Bottling
Operation, to these, the company has given the right to produce the product for the
company and to supply with the territory assigned by the company. Company has no
ownership or operational right/ control over these.
In India Company have 26 COBO and 14 FOBO operations for the production and
control of the whole operation in India. These are divided in to various zones that are
given in the marketing mix section of this report.
Hindustan Coca-Cola Beverage Pvt. Ltd. First established plant is Hathras in India,
second largest plant is Dasna, and the largest one is in Bangalore. Hathras plant has 3
RGB filling lines. The RGB line operating at mechanical efficiency of 90 % . Company
doesnt have the facility for filling Maaza (RGB and Tetra Pack) a Mango flavour drink
of Coca-Cola, pet bottling, water plant.
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CHAPTER 3
61
RESEARCH METHODOLOGY
1) Product availability
2) 100% rich
3) Good relation
4) Warm display
5) Cold display
6) Proper singer
7) Rich at one time
8) Fulfill your commitment
1) Product availability
It means all the flavors of coca cola should be available at one time. By which
customer can able to give any flavors to the consumer and can give the satisfaction.
2) 100% rich - it means. Company top management always should always worry about
the quality of all the brands. If any organization wants to service in the market and
wants to better image then quality play a very integral role so for sales promotion
quality should by 100% good.
3) Good relation companys executive, sales man should make good relation from
dealer, whole seller and retailer. There is only 20% brand loyal person. Remaining
80% impulse selling is going on. It means in India in cold drinks line which ever
brand consumer see first of all that brand will demanded by user. The selling is high
that particular brand. So i want to say that if. The executive relations will goods from
dealer, whole seller retailer. Then he will arrange coke brands on front of shop by
which coke selling will improve.
4) Worm display
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5) Cold display
6) Proper shin age - proper shin age also play a key roll in more selling.
7) Fulfill our commitment if executive promise to the customer of any type. Then
executive shovel fulfill his promise, such as. Executive say that to the retailer if you
will sell 1000 carrot in this month then i will give you a coke fridge. If retailer has
sold out 1000 carrot in the a month then executive should fulfill is commitment. By
this manner selling will also improve.
63
METHOD ADOPTING IN THE RESEARCH
PRIMARY METHOD
First of all we used to give the introduction with smile enthusiastic and with
proper eye contact and demand to give 2 or 3 minute to fulfill his questioner
and then after we started to put the questioner at the retailer and completed
the questioner.
(i) Questionnaire Method
(ii) Personal Interview
SECONDARY METHOD
This method is most appropriate method for collecting the data. By this method
researcher get the actual report
64
DATA COLLECTION
Data collection took place with the help of filling of questionnaires. The questionnaire
method has come to the more widely used and economical means of data collection. The
common factor in all varieties of the questionnaire method is this reliance on verbal
responses to questions, written or oral. I found it essential to make sure the questionnaire
was easy to read and understand to all spectrums of people in the sample. It was also
important as researcher to respect the samples time and energy hence the questionnaire
was designed in such a way, that its administration would not exceed 4-5 minutes. These
questionnaires were personally administered.
The first hand information was collected by making the people fill the questionnaires.
The primary data collected by directly interacting with the people. The respondents were
contacted at shopping malls, markets, places that were near to showrooms of the
consumer durable products etc. The data was collected by interacting with 200
respondents who filled the questionnaires and gave me the required necessary
information. The respondents consisted of housewives, students, businessmen,
professionals etc. the required information was collected by directly interacting with
these respondents.
65
THE SAMPLE PLAN AND SAMPLE SIZE
TARGET POPULATION
66
SAMPLE SIZE:
SAMPLE SIZE
I have targeted 60people in the age group above 15 years for the purpose of the research.
The target population influences the sample size. The target population represents the
Lucknow regions. The people were from different professional backgrounds.
The details of our sample are explained in chapter named primary research where the
divisions are explained in demographics section.
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TECHNIQUE INVOLVED IN DEFINING PROBLEM
In Present situation of Coca Cola is very good in the market. The company have good
market share app. 67% and remain 33% market share covered by his close competitor
Pepsi in this Area.
Last years situation was not that. Last years market share of coca cola and pepsi was app.
Same in the market but in this year company adopted new strategy and provided good
service and provide more and more customer satisfaction company top management have
taken a good decision in this year. Decision was that all the flavors rate should be
decreased by which lower level people can be taken the enjoy of coke and the company
provided a new flavor of 200 ml in the birth rupees of 5. This brand have got good
position in middle level and lower level family so by the virtue of good strategy company
have got good market share app. 67% right now coke position is much more strong.
Comparison to Pepsi.
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Coke Pepsi
Cola Cola
(Pepsi)
Coca Cola Thumsup
Orange
(Fanta) Orange
(Mirinda)
Fanta Orange Fanta Green Apple
Fruit Fruit
(Maaza) (Slice)
MAAZA ORANGE
Pulpy orange Pineapple Soda
Soda (Lehar Evervess)
(Kinley)
69
Kinley Water Kinley Water
(Kinley) Aquafina
FIGURE 17
CHANNEL OF DISTRIBUTION
OUT LINE DYGRAM OF DISTRIBUTION CHANNEL OF COCA COLA
Company
Manufacturing goods
Depote
Distributor Company
Vehicle
Retailer Retailer
Consumer Consumer
FIGURE18
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CHAPTER 4
71
FINDINGS AND ANALYSIS
Cola
Pepsi = 45%
Coke = 35%
Thumps up = 20%
20%
45%
35%
FIGURE 19
72
Orange
Fanta = 75%
Mirinda = 25%
25%
75%
Fanta Mirinda
FIGURE 20
Cloudy Lemon
Limca = 80%
Lemon Miranda = 20%
73
20%
80%
FIGURE 21
Clear Lemon
Sprit = 75%
7UP = 25%
25%
75%
Sprit 7UP
FIGURE 22
Mango
Maaza = 80%
74
Slice = 20%
20%
80%
Maaza Slice
FIGURE 23
75
Soda
Kinley = 50%
Lehar Evervess = 50%
50% 50%
FIGURE 24
Can
Coke = 40%
Pepsi = 60%
76
40%
6
60%
Coke Pepsi
FIGURE 25
77
PET
Coke = 60%
Pepsi = 40%
40%
6
60%
Coke Pepsi
FIGURE 26
78
Kinley Water
Kinley = 80%
Aquafina = 20%
20%
80%
Kinley Aquafina
FIGURE 27
79
Total Product
Coke = 63%
Pepsi = 37%
37%
6
63%
Coke Pepsi
FIGURE 28
80
RECOMMENDATIONS
Company should prepare future plan for maintain selling in market. Because
company competitor can increase and can capture the market.
Company should provide special benefit to the retailer. Other wise his interest will go
down from cold drinks.
Present time competition is not high in this line because its competitor is only Pepsi.
So that company can do compromise with Pepsi and both can increase products
M.R.P.
In case of cold drinks selling mostly depend on retailer. So that his satisfaction
needed.
Test of all flavor like, Coke, Thumps, Limca, Fanta, Maaza and Sprite should also
good.
Good execution is a main factor in more selling good execution improves selling.
Sales executive & salesman relation and good behavior also provide effective
guidelines in increasing selling.
81
In Cold Drinks line brand loyalty found only 20%. So that which will be visible that
will salable.
82
QUESTIONNAIRE
Questionnaire
NAME OF THE SHOP.
ADDRESS
TEL. NO. .
Q2)How many brands are available in your shop in the RGB and PET Bottles?
(A) In RGB
COCA COLA THUMS UP
SPRITE LIMCA
FANTA MAAZA
(B)In PET
SPRITE LIMCA
FANTA MAAZA
MMPO NIMBO FRESH
Q3) Which company Visi Cooler are you having?
YES NO
83
Q6)Are you satisfied with the distribution network?
YES NO
Q7)Are you aware of the various schemes run by the coca cola?
YES NO
Q8) Which company advertisement and sales promotion activities are better?
6-10 CASES
YES NO
Distribution Service
Average Bad
Very Bad
COMPLAINTS OR SUGGESTIONS.
84
BIBLIOGRAPHY
Internet site
www.cocacola.com
www.pepsico.com
Record of N.M. Soft drinks, Sat Nirnkari Colony, Delhi
Record of luminous marketing.
News items of English dailies, published from New Delhi.
The Times of India
The Telegraph
The Economic Times
Advertisement on coke products.
Advertisement on Pepsi product.
Consulted Libraries
American Library
British Library
Consulted Books
Research for marketing Decision by P. Green, D.S.
Tull, G. Albaum
Marketing Management -Phillip Kotler.
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