A Project Report On: Hardcore Sales On Coca-Cola Zero SKU in Alternative Beverages Sector

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 35

A PROJECT REPORT ON

Hardcore sales on Coca-Cola Zero SKU in Alternative Beverages Sector

SUBMITTED BY

Geetha avuhu

Institution Guide

Prof.raju

Senior Associate Dean

dhruva college of management


CERTIFICATE OF APPROVAL

The following Summer Project Report titled “Hardcore sales on Coca-Cola Zero in alternative beverages

sector " is hereby approved as a certified study in management carried out and presented in a manner

satisfactory to warrant its acceptance as a prerequisite for the award of Post-Graduate Diploma in

Management for which it has been submitted.

It is understood that by this approval the undersigned do not necessarily endorse or approve any statement
made, opinion expressed or conclusion drawn therein but approve the Summer Project Report only for the
purpose it is submitted.

Signature
Acknowledgement

I would like to express my gratitude to the management of Hindustan Coca-Cola Beverages Pvt. Ltd.
& Kumaravelu Brothers (Alwal Distributors) Hyderabad for giving me the opportunity to undertake
my summer internship program in the company which gave me an valuable insights into the working of
the company BEVERAGES (FMCG) sector as a whole.

I owe my sincere thanks and profound gratitude to Mr. K.Ravi Kanth (GSM), Mr. KVS
Mahesh (A.S.M), and Mr. Ravi Prakash (STL) who gave time to share their thoughtful criticism and
suggestions to improvise the work. Their contribution enlightens me into this project and grabs immense
knowledge of the Alternative Beverages (ALTB).

I am thankful to Dr. pratap reddy (Senior Associate raju of Druva college of managment ) and Prof.
batt for their help and guidance at every stage to complete this dissertation on time

Last but not the least, I would also like to thank my institute DHRUVA college of management, AICTE
approved for inculcating the skills and management knowledge in me, then providing the best opportunity
to apply and update my knowledge and skills through summer internship in such an esteemed
organization.

I would also like to thank my classmates of Internship, family members and seniors for extending me
their help and cooperation whenever I approached them.

Geetha avuthu

EXECUTIVE SUMMARY:-
Alternative Beverages (ALTB) which is basically my concern industry, which is a growing market and a
complex industry and my project has revolved around. The project titled “Hardcore sales of Coca-Cola
Zero of ALTB industry of Coca-Cola Company in retail sector” which was basically a diehard sales
marketing of Coca-Cola Zero project. The main motive behind doing this project is to:-

 Know the industry.


 Have an overview of how Coke Zero could penetrate the retail sector, which is currently the most
prominent distribution channel for Alternative Beverages..
 Know the working of Salesman and the distributors of ALTB, Coca-Cola Zero in the retail sector.
 Also understanding and analyzing the strategies of the competitor and the various other aspects
which they are used in the retail sector.
My project was totally based on the sales of Coke Zero. The project started by reading about the
industry as well as visiting to various retail shops with the salesman in order to gain information about
perception of Coca-Cola Zero SKU. This was done thoroughly in order to understand about scope of
ALTB industry to generate leads in those retail, before this I was given a thorough overview of different
SKU’s of Alternative Beverages of Coca-Cola Company.
My next step was to visit KVB Distributers of Coca-Cola and gather information about distribution
channel, retailer margins, trader inputs, consumer’s offers, window display, floor standing units (FSU),
salesman salary and incentives and some other strategies. My basic objective was the sales of Coca-Cola
Zero SKU of Coca-Cola (ALTB) that can be increased, how supply chain could be made better, what all
strategies competitor where implementing and most important. In this project I had to visit various
retail stores, KGS, PVS, Mini markets, Super markets.
My findings through this project were that Coca-Cola Zero is still in introductory state and there is a
scope of improvement in sales. Retailers have the capacity to give good business to the ALTB SKU’s and
more sales could be achieved via Merchandising the stores, offline, Posters, Tags and thus we can achieve
the pull marketing by customer and also encouraging the sales persons by incentives so the work with
more dedication.

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.
Table of contents

Sl. No. Particulars Page No.


1 Certificate of Approval 2
2 Acknowledgement 3
3 Executive Summary 4
4 Introduction 6
5 Products & Brands of Coca-Cola (ALTB) 8-9
6 Introduction of project 9-10
7 Objective of the Study 11
9 Methodology 11
10 Sources of data 11
11 Sample selection & Data collection 11
12 Summary & analysis on availability of CZ 11
13 Markets worked on 12-18
14 Merchandising 18-19
17 Entering in a retail card 20
18 Billing order 20
19 SWOT Analysis 21-22
20 Future plan 23
21 Conclusions 23-24
22 Reference 25

Introduction:
The Coca-Cola Company is an American historical multinational beverage corporation and
manufacturer, retailer, and marketer of non-alcoholic beverage concentrates and syrups, which is
headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola,
invented in 1886 by pharmacist John Stitch pemberton in Columbus, Georgia. The Coca-Cola formula
and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 – March 12, 1929), who
incorporated The Coca-Cola Company in 1892. The company operates a franchised distribution system
dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to
various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns
its anchor bottler in North America, Coca-Cola Refreshments.

Its stock is listed on the NYSE (NYSE: KO) and is part of DJIA; S&P 500 index; the Russell 1000 Index;
and the Russell 1000 Growth Stock Index. As of 2015, its chairman and its CEO is Muhtar Kent.

Acquisitions:
The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960,[4] the Indian
cola brand Thumbs Up in 1993 and Barq's in 1995. In 2001, it acquired the Odwalla brand of fruit juices,
smoothies, and bars for $181 million. In 2007, it acquired Fuze Beverage from founder Lance Collins and
Castanea Partners for an estimated $250 million. The company's 2009 bid to buy a Chinese juice maker
ended when China rejected its $2.4 billion bid for the Huiyuan Juice Group on the grounds that it would
be a virtual monopoly. Nationalism was also thought to be a reason for aborting the deal. In 1982, Coca-
Cola purchased Columbia Pictures for $692 million. It sold the movie studio to Sony for $3 billion in
1989. In 2013, Coca-Cola finalized its purchase of ZICO, a coconut water company. In 2015, the
company took a minority stake ownership in the cold pressed juice manufacturer, Suja Life LLC.

Revenue:

According to the 2005 Annual Report, the company sells beverage products in more than
200 countries. The report further states that of the more than 50 billion beverage servings of all
types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to
Coca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now they
serve 1.6 billion drinks every day). Of these, beverages bearing the trademark "Coca-Cola" or
"Coke" accounted for approximately 78% of the company's total gallon sales.
Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

 43% in the United States


 37% in Mexico, India, Pakistan, Brazil, Japan and the People's Republic of China
 20% spread throughout the rest of the worldIn 2010, it was announced that Coca-Cola had become
the first brand to top £1 billion in annual UK grocery sales

Advertising:
Coca Cola advertising has “been among the most prolific in marketing history”, with a notable
and major impact on popular culture and society as a whole. The logo, bottle design and brand
image are internationally recognisable. Ranked the number one soft drink, repeatedly,
internationally, and has notoriety as the first consumed soft drink by astronauts in space. They
employ a diverse range of integrated marketing communications to advertise through direct
marketing, web based media, social media and sales promotions (Stringer, 2015). They carefully
consider all touch points a consumer (or prospective) has with the brand as potential delivery
channels for their message and make use of all relevant communication systems. This well
established, long standing, consistent approach has created a longing for the product that by far
“superseded the desire for that typically associated with a drink to quench one’s thirst”
(Dudovskiy, 2015).
Direct Marketing: They have exclusive vendor company partnerships which eliminates
competition e.g. cinema’s and restaurants only serving Coca Cola over Pepsi. At sponsored
sporting events they again eliminate competition by attaining sole sale rights as well as VIP sales
opportunities to important clients e.g. baseball fields.
Also via mobile marketing in text messages e.g. viral marketing campaigns (Stringer, 2015).
Web & Social Media: They set the industry benchmark as the brand us so universally recognized
that audience building is unnecessary. Their fan engagement spans 86 million globally across
social media channels. They deliver a consistently unified message whether it is through new
products, online interaction, and social, cultural or sporting events (Stringer, 2015).
Sales & Promotions: In the retail setting, direct store beverage delivery trucks (mobile
advertising) as well as point of sale coolers and vending machines have bright red logo blazoned
branding. In terms of food service, Coca Cola is a food pairing suggestion that is now ingrained
as a food match e.g. popcorn, burgers, fries and hot dog combos (Stringer, 2015).

Tetra packs (SKU’s)200ml


Mango & Mixed fruit -> Rs 10/-

Apple & Nimbu fresh -> Rs 12


/-

Products and Brands of


Coca-Cola (ALTB)

Mango -> Rs15/-


Apple -> Rs 20/-
Pulpy Orange -> Rs 20/-
Gritty Goa -> Rs 20/-
Mixed fruit -> Rs 20/

Mango -> Rs 15/-


Apple -> Rs 20/-
Pulpy Orange -> Rs 20/-
Gritty Goa -> Rs 20/-
Mixed fruit -> Rs 20/

PET (SKU’s)400 ml
Pulpy Orange -> Rs 30/-
Nimbu fresh -> Rs 25/-
Apple -> Rs 30/-
Mixed fruit -> Rs /- 30/-
Mango -> Rs 25/-
PET
(SKU’s)

400ml
Pulpy Orange -> Rs 65/-
Nimbu fresh -> Rs 55/-
Apple -> Rs 55/-
Mixed fruit -> Rs /- 60/-
Mango -> Rs 55/-
Cans (tins) -> Rs 30/-
300ml
Coca-cola contains
Various different types of
Flavors in our
Distribution channel.
Cans (tins) -> Rs 30/-
300ml
Coca-cola contains
Various different types of
Flavors in our
Distribution channel.

4
400ml PET (SKU’s)

Coca-Cola Zero -> Rs 25/-


(Great Coke with Zero Sugar).

PET (SKU’s)750ml

Kinley Water -> Rs 18/-


Project

Hardcore Sale of Coca-Cola Zero


SKU

Introduction:
Coke Zero or Coca-Cola Zero: is a product of the Coca-Cola Company. It is a low calorie
drink, which has 0.3kcal per 100ml. It is marketed as having a taste that is indistinguishable from the
standard Coca-Cola, which is opposed to different flavored profile (Diet Coke).

In the United Kingdom, Coca-Cola Zero is being renamed to "Coca-Cola Zero Sugar" and is
being reformulated to taste more like standard Coca-Cola.

Coca -Cola Zero delivers the great taste of Coca-Cola, with zero sugar. While it has the same
sweeteners as Diet Coke (a blend of aspartame and acesulfame-K), it has a different flavor base, though
both are low calorie and zero sugar.
Nowadays, the people are becoming more about health cautions which is forth analyzed by Coca-
Cola company and thus they launched the Coke Zero also called great coke with zero calories, which has
0.3kcal per 100ml, sugar Zero , Fat Zero, Protein Zero with the Taste more likely to the standard Coca-
Cola.

Objective of the study:

 The main objective of this study lies in studying and understanding Market which
comprises of consumers and retailers perception and opinion about the Coca-Cola Zero
Storage Keeping Unit (SKU).
 To increase the visibility and availability of Coca-Cola Zero.
 To increase the sales of Coca-Cola Zero.

Methodology:

The selection of the methodology is very crucial for the conclusions as it affects what we have to
say about the cause and factors influencing the Coca-Cola Zero project work. I followed the training
procedure for a week where I was assigned to the salesman, to observe how the sale is being made, how
to pitch to the retailer, explain the relevant schemes to the retailer and thus to achieve the win-win
strategy. The project work is done at Hyderabad.

Sources of Data:

 Primary Sources
Primary data has been used for the purpose of the study of “Hardcore sales of Coca-Cola
Zero” Storage Keeping Unit (SKU) in Alternative Beverages sector of Hindustan Coca-
Cola. This SKU is still in introductory state, i.e. I’m laying the seed of Coca-Cola Zero
SKU seed
where
thecompany
can enjoy
.the
sweetness of
Coca-Cola
Zero down
the line.
This consists
of list of
retailer’s
cards,
relevant
beats,
various measurable factors were identified and the SKU’s sale made to the relevant
retailer.

Sample Selection & Data Collection:

To collect the primary data regarding the “Hardcore sales of Coca-Cola Zero” through
the distribution channel, I had to visit many retail stores, Kirana and general stores, provision stores, mini
markets and even super markets and collect the data in the retail card which I can use for the analyzing
the visibility or availability of Coca-Cola Zero in that market before I joined and the visibility or
availability of Coca-Cola Zero in the market at the completion of my tenure of Internship.

Summary and Analysis of Coca-Cola Zero visibility:

Coke Zero or Coca-Cola Zero: is a product of the Coca-Cola Company. It is a low


calorie drink, which has 0.3kcal per 100ml. It is marketed as having a taste that is
indistinguishable from the standard Coca-Cola, which is opposed to different flavoured profile
(Diet Coke).
Nowadays, the people are becoming more about health cautions which is forth analyzed by Coca-
Cola company and thus they launched the Coke Zero also called great coke with zero calories,
which has 0.3kcal per 100ml, sugar Zero , Fat Zero, Protein Zero with the Taste more likely to the
standard Coca-Cola.

My work in the Coca-Cola Company is to diehard sell the Coca-Cola Zero SKU in the market i.e.
to the retailers, kirana and general store retailers, mini market retailers, provision store retailers,
super market retailers and even bakeries.

Before entering to the market, I supposed to make the target entry for the day where I’ll be
stretched beyond my limit of sale towards Coca-Cola Zero, then go to the specified market for the
day, before entering to the retailers first analyze the previous report of the retailer in the retailer
card, then look at the lines and cases previously he purchased and then pitch the sale to the
retailer, then convince the retailer in purchase cycle of Coca-Cola Zero, thus increase the
visibility or availability of Coca-Cola Zero in that retail of that market.

After the sales call is complete with the retailers, then I gonna tie a Tag of the Coca-Cola Zero
SKU or paste the poster of Coca-Cola Zero in the store so that the merchandising will favor at the
POP (point of purchase) decision and also acts as a offline salesman.

Now we’ll look at the market during my tenure of my Internship.

Markets worked:

Rasoolpura:

Rasoolpura market consists of anna nagar and even the rasoolpura area where the low class
people will be living over there and the area looks like a slum. When I entered the rasoolpura
market, I was stunned and felt “OMG” I have to sell Coca-Cola Zero over there, then my motto is
to diehard sell the Coca-Cola Zero somehow convince the retailers over there and the retailers
over there cannot buy with more money i.e. cannot buy more stock, So in order to increase the
visibility or availability of the Coca-Cola Zero SKU I just pitched the sales call by influencing the
retailers to buy little stock of Coca-Cola Zero so that the visibility or availability or Coca-Cola
Zero SKU will be increase in Rasoolpura market.
People perception in Rasoolpura market is they were not cautious about the nutritional facts i.e.
the protein, Sugar or the fat the SKU contains or the calories the SKU produces. Let’s look at
some analysis of Coca-Cola Zero visibility or availability with the productive calls made.

This is the pie chart of the Coca-Cola Zero visibility or availability of my first week in the
market.

availability
8
7
6
5
4
availability
3
2
1
0
25-5-2016 1/6/2016 22-06-2016

The Productive calls made were 19 and Coca-Cola Zero availability is Zero.

Then I worked on how to pitch the sales call in Rasoolpura, built rapo with the retailers and thus executed
the sales call effectively. Let’s look at the bar graph of the Coca-Cola Zero SKU sale made with respect to
the productive calls made on the respective.
Radhika road:-

placed
18
16
14
12
10
8 placed
6
4
2
0
18-6-2016 4/6/2016

k.alwal

28-06-2016
4.5
4
3.5
3
2.5
28-06-2016
2
1.5
1
0.5
0
suryanagar

surya nagar placed


16
14
12
10
8
surya nagar placed
6
4
2
0
28-6-2016 Jul-16 14-07-2016

Lothukunta venkatapuram

9
8
7
6
5
Series1
4
Series2
3
2
1
0
lothukunta date 24-5-2016
venkatapuram
East maredpally

east maredpally placed


12

10

6
east maredpally placed
4

0
27-5-2016 3/6/2016 10/6/2016

hasmadhpet

28-5-2016
10
9
8
7
6
5 28-5-2016
4
3
2
1
0
Jeedimetla village

jeedimetla village placed


16
14
12
10
8
jeedimetla village placed
6
4
2
0
30-5-2016 4/5/2016

yapral

26-5-2016
8

4 26-5-2016
3

0
r.k.puram

r.k puram placed


4

2
r.k puram placed
1

0
11/6/2016

Radhika road

radhika road placed


18
16
14
12
10
8 radhika road placed
6
4
2
0
18-6-2016 4/6/2016
Rezimental bazar

rezimental bazar placed


8
7
6
5
4
rezimental bazar placed
3
2
1
0
24-6-2015 25-6-2016

kompally

kompally placed
3

1 kompally placed

0
6/6/2016
a.s.rao nagar

a.s.rao nagar placed


12

10

6
a.s.rao nagar placed
4

0
2/6/2016 9/6/2016 16-6-2016 23-6-2016 30-6-2016

Anandh bhagh

13-6-2016
8

4 13-6-2016
3

0
Ecilx2

ecilx2 placed
10
9
8
7
6
5
ecilx2 placed
4
3
2
1
0
20-6-2016 24-6-2016 27-6-2016 1-7-206 8/7/2016

Rtc.colony

20-6-2016
12

10

6 20-6-2016

0
Merchandizing & Advertising:

we’ll be doing merchandizing as well as advertising when we pitch the sales call for the Coca-Cola Zero
SKU Productivity and to increase the visibility or the availability of the Coca-Cola Zero SKU and also to
create awareness of Coca-Cola Zero that it is a “Great Coke with a Zero Sugar” and also it contains a
sugar substitute but not sugar, so even the diabetic people can consume the drink.

These will act as a offline salesman and will make an impact in choosing Coca-Cola Zero among the
impulse products.
Entering in a Retail Card:

This is the sample picture of how we enter the stock


ordered by the retailer or the store in charge and this
we will make the bill and thus the delivery boys will
take the relevant order for the different retails with
their respective orders and then they deliver and
collect the money then and there only because The
Coca-Cola company will be operating the orders only
on cash on delivery but not on credit. This can be one
of the weaknesses for the company because several
competitors operate the delivery by giving the credit
to the retailers.
Billing Order:

The image beside clearly shows how the


billing is happening.

The order was billed with the MRP, Rate,


and QTY, Landing rate, VAT, Total amount
and the Scheme amount.
SWOT ANALYSIS

 Better network – covers whole of the city.


 Brand recognition – brand image among customers
 Product availability – coca cola Zero has distributors all
over India so the product is regularly supplied to its outlets,
Maximum market share
 Brand equity – high equity in the market.
 Advertisement policy – CocaCola Company endorsed with
famous personalities like salman khan, Mahesh Babu and many
more.
 Bottling plants – there are 29 bottling plants in India. These
plants are company owned and not franchised like Pepsi.
 Promotional schemes – to activate sales company is
providing Umbrellas, Chairs, Tables, racks, flanges, visicooler&
glasses.

 People Reliance on Quality of our Product and Brand.


 Knowledge Regarding Competitor
SWOT analysis is a basic,  Hardworking Staff & Distributor
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 is an important step in planning and
its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take
the information from the surrounding and separate it form internal issues (strength and weaknesses) and
external issues (opportunities and threats). SWOT analysis assists the firm in accomplishing its objectives
(strength or opportunity) and overcoming the obstacles (weakness or threats).

STRENGTH
 Retailers interested in short term gains .
 Customer feedback system is not effective.
 Product availability – Distributors give products to specific
retailers only when they have limited due to low production.

 Coca-Cola giving less schemes and incentives to its retailers.


 Customer demand is augmented day by day, which is not
satisfied well on time.
 Retailers complain for irregular visit of distributors.
 Promotional schemes – Schemes are not available to all
retailers.
 Delivery of the order to retailer is also a problem

 Threat from Competitors as they give offers at


cheaper rates than coca cola.
 May lose the market share to its competitor, if
they don’t look upon the demands of retailers who
ultimately sell product to the end customer.
 Impulse customer’s bye whatever is in the offer, so
company should give offers regularly

WEAKNESS
ES

 Company should give more number of schemes.


 Improvement in distribution channel.
 Covering greater institutional areas as younger generation
gets much fascination out of such beverages
 Coca cola can create more monopoly outlets by giving
heavy discounts as brand image and quality speaks itself.
OPPORTUNITY  Opening new outlets in convent schools,Hotels and multi
activity channels ,as more urbanization
 Improvement in distribution channel and in bottling plant.

 Preference of juices and energy drinks over cold drinks

 In the present scenario can come up with more verities in


the fruit drink along with more flavours.

THREATS
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

Conclusion:
I would like to say that the project give to me was really interesting project by my mentor that
“Hardcore sales of Coca-Cola Zero” to the retailers, kirana & General retailers(KGS) , mini market
retailers and super market retailers through distribution channel and how to increase the sales of the Coca-
Cola Zero SKU and even fruit juices in the different market.

The starting phase of my internship was really tough and interesting too, understand the
perception towards Coca-Cola Zero SKU in retailers and then I prepared how to pitch the sales call to the
different retailers with the different perception towards margins, schemes and the discounts.

We had done the below the line(BTL) promotion i.e. I had done merchandizing and advertising
the different SKU’s with the focused products poster, Tags and stickers which acts as a offline salesman
and can will impact at Point of Purchase(POP) and promotion via salesman.

Analyze the retailer, what he is looking for either margin problem, supply problem and deal with
the retailer addressing the issues and convenience the retailer in order to increase the sale of Coca-Cola
Zero SKU and achieve Win-Win Strategy.
Got to know different types of Visicoolers, 200ml is Affordable small juice pack (ASJP) or tetra
packs, 250ml is single serve pack (SSP) , 400ml is on the go pack (OTG), 1l is future consumption pack
(FC).

RED outlets (Right execution daily) which has a Coca-Cola visicooler and we should make the
most order in there RED outlets because they were having Coca-Cola visicooler.

PASSION Sales Call:

P -> Planning & Preparation

This includes day target, focus brand, checking the things to carry i.e. samples and POS

A -> Approach

Opening the call, creating positive first impression, addressing the retailer with their first name, building
the retailer relationship.

S -> Stock Check

Check the stock in the shelf cooler and in warm zone, check competition stocks to assess opportunities
and focus on First in First out (FIFO)

S -> Sell and Secure

Based on stock, past sales, suggest order based on the product detailer, probe and listening carefully

I -> Increase

Look at the opportunities to increase the range of products, increasing the visibility in the outlet.

O -> Outlet Merchandising

Ensuring out stocks are placed as per planogram, ensuring the range availability and then placing the
POP’s and poster at the counter top or to create visibility at the right place.

N -> Notify and Close

Confirming all the orders booked, delivery date, replacement if any and seeking commitment from the
retailers

Here by I conclude, I felt It’s my pleasure to work with “ The Coca-Cola Company” and felt satisfied
when working on Coca-Cola Zero SKU, I’m one of the among who have sowed the seed, When I look at
Coca-Cola Zero SKU being sold I’ll be much happier.
References:
 Google
 Philips Kotler “Marketing management”
 Philips Kotler “Principles of marketing”
 www.mastbusiness.com/bizguides/bg129
 www.briantracy.com/blog/sales.../proven-strategies-to-increase-sales-of-your-product/
 www.mbaskool.com

You might also like