ANALYSIS OF SOFTDRINK MARKET

With reference to Hindustan Coca-Cola Beverages Pvt Ltd

Presented by: Tushar Ranpara S.K Patel institute of management and computer studies Gandhinagar

Introduction to Project work

Analysis is typically the task understanding any substance. Analysis is focus on these entities;
GOODS SERVICE PRICE PLACE PERSON ORGANIZATION INFORMATION

of

Cont.
Approaches used in Analysis;
Review from existing customer. Review from Non-existing customer. Review from the previously existing customer, Who is not currently in business.

Industry profile
Nature of beverages industry.
Beverages classified under two categories.
Alcoholic Non Alcoholic

Beverages Market is worth around Rs. 7000 Crore at the growth rate of 10-15 % per annum. Multinational Corporations booms. Cola products share nearly 61-62% of the total soft drink market.

Industry profile
Nature of beverages industry.
Beverages classified under two categories.
Alcoholic Non Alcoholic

Beverages Market is worth around Rs. 7000 Crore at the growth rate of 10-15 % per annum. Multinational Corporations booms. Cola products share nearly 61-62% of the total soft drink market.

Industry profile
Recent development & Future prospects
Abundant use of advance technology Varity of products to meet specific need of customer.

Major players in market.

Coca-Cola Pepsi

ABOUT COMPANY
Management structure. Historical developments. Corporate identity. Products of Company.

Soft Drink Market

14000
Estimate d M arke t Size (million bottle s)

12336 11015 9834 8781 7840 7000

12000 10000 8000 6000 4000 2000 0

2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

Year

INTRODUCTION TO SOFT DRINK INDUSTRY

ABOUT COCA-COLA
HISTORY DIFFERENT PRODUCTS

Historical Development
1886: The idea generated of Coca-cola. 1888: The first bottle selling. 1945: company establish 64 obverses bottling plants. 1993 : Company came to India once again after 16 year of absence. 1993-2005 : company growing in India.

Management structure
E. Neville Isdell Chairman, Board of Directors, CEO Alexander B. Cummings President and Chief Operating Officer Gary P. Fayard Chief Financial Officer Charles B. (Chuck) Fruit Chief Marketing Officer Irial Finan President, Bottling Investments Cynthia P. McCague Human Resource

Muhtar Kent President North Asia, Eurasia & Middle East Donald R. Knauss President and Chief Operating Officer North America Patrick T. Siewert President and Chief Operating Officer East, South Asia & Pacific Jos Octavio Reyes President and Chief Operating Officer Latin America Dominique Reiniche President, European Union Group

J. Alexander M. Douglas, Jr.

Chief Customer Officer

President, Marketing, Strategy and Innovation

Mary E. Minnick

Danny L. Strickland Chief Innovation/ Research and Development Officer

Clyde C. Tuggle Director, Worldwide Public Affairs and Communication

THUMS UP
Thums Up,I want my thunder

Leading carbonate soft drink in India. Originally introduced in 1977. Acquired by CocaCola Co. in 1993. Strong & fizzy Cola Taste.

SWOT ANYLYSIS
STRENGTHS:
STRONG ADVERTISING CAMPAIGN PRODUCTION DIVERSITY OF MANAGEMENT

WEAKNESSES:
BUSINESS IN NEARLY 200 COUNTRIES DECENTRALISED MANAGEMENT STRUCTURE

COCA-COLA
Coca-Cola Enjoy!

The most popular & biggest selling soft drink in history, as well as the best known product in the world Registered as trademark in 1887 & By 1895 Coca-Cola was being sold in everywhere.

DIET COKE
Known for Looking good and tasting great! Introduce in 1982 & quickly become number one in sugar free drink in diet conscious America. Its now number three soft drink in the world.

FANTA
Fanta was acquired by the Coca-Cola Company in 1960. Fanta associates with Happiness and special times with friends and family. This positive imaginary is driven by brands fun, playful personality, which goes hand in hand with bright color, bold fruit taste and tingly carbonation

SPRITE
Clear, Crisp & Refreshing.

Introduced in 1960. Sprite is worlds leading lemon-lime flavored soft drink. It is sold in more than 190 countries and ranked as the No.4 soft drink world wide. Sprite has also an honest,straightforward attitude about things that sets it apart from other soft drinks.

SWOT ANYLYSIS
OPPORTUNITIES:
CAPABLE OF EXPANDING INTO OTHER MARKETS CHINA: THE LARGEST CONSUMER OF FOOD & BEVERAGES

THREATS:
REGIONAL ECONOMY IN SOME OF THE GEOGRAPHIC AREA TODAY PEOPLE HAVE BECOME HEALTH CONSCIOUS

MAAZA
Yaari Dosti Taaza Maaza

Maaza was introduced in India in 1984 as a non carbonated fruit drink. Acquired by coca cola in 1993. With the real fruit taste, kids love, plus added calcium.

LIMCA
Lime & Lemony Limca

It was acquired in 1993. the products invigorating and cloudy look havent changed but brand has been revitalized with new marketing campaign. Limca continues to build a loyal following among young adults who love the lighthearted way it compliments the best moment of their life.

KINLEY SODA
Kinely soda is available in segment size of 250ml PET. The kinley soda is new approach to the customer who wanted the premium segment soda to drink apart form local brands. Its only available in Indian market to enhanced the growth and availability of companys product and value

KINLEY WATER
Kinley a purified bottled water, introduced in India in August 2000. In a country where many people are concerned about reliable drinking water, Kinley delivers a product that is safe and suitable for consumers and their families. Especially popular among adults who seek a better quality of life and a healthier lifestyle. Kinley is available in a range of packaging including 500 ml, 1 liter and 2 liter PET bottles, and 5 liter, 15 liter, 20 liter and 25 liter bulk jars for in-home consumption

GEORGIA
In India',leading the vision 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 sizzling flavours, adrak, elaichi, masala and plain tea cappuccino, mochaccino and regular coffee.

GEORGIA GOLD
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.

Theoretical aspect of study

PESTEL Frame work Political Factors. Economical Factors. Social Factors. Technological Factors. Environmental Factors. Legal Factors. Porters five forces models.
Threat of Entry. Threat of substitute. Bargaining Power of supplier. Bargaining Power of Buyer. Rivalry amongst the existing firms.

RESEARCH METHODOLOGY
Research objective Study the retail outlet chain of soft drink in Rajkot.
To explore potential retail outlets in Rajkot. To study the retailers behavior & satisfaction from the distributor and company.

Methods of data collection

Cluster Sampling Primary data collection sources ( questionnaire )

Data analysis Those who dont keep soft drink.

Those who keep soft drink Previously keeping soft drink.

Flavors

Companys products Coca-Cola Thums up Coca-Cola Mazza Fanta Limca Sprite Kinely Pepsi Pepsi Others
RC cola Sosyo Sabras Tip Tip cola

Cola (hard drink) Pulp (Mango) Orange Lime Flavored water drink Soda

Slice Mirinda
Mirinda Lime Dew 7UP

Frotie
RC cola orange Tip Tip orange

Tip Tip lime Sabras Green Local soda

Dukes

Those who do not keep soft drinks

Out let type & share who dont keep soft drinks
Types of Outlet
8% 12% 7%

19% 54%

Pan shop Provision & glossary store Others

Dairy Farm Hotels,resturant & Guest houses

Type of Outlet Pan Shop Dairy Farm Provision & Glossary store Hotels, Restaurants & Guest houses Any other Total

No. of Retailers 11 81 29 18 12 151

Reasons for not keeping cold-drink in outlet

REASON FOR NOT ACQUIRING SOFT DRINK
5% 12% 7% 27%

15% 34%

MARGIN INTEREST LOCATION

ELECTRICITY NOT HAVING SPACE OTHERS

Reason for not acquiring soft drink

No. of Retailers 41

Margin
Electricity Interest Not having space Location Others Total

52 22 10 18 8 151

Potential of shop

29%

71%

Yes

No

Potential Yes No

No. of Retailers 44 107

Rating of Shop
100 72 75 No of Retailer 50 25 0 A B Rating C D 9 12 58

Rating A B C D Total

No. of Retailers 9 72 58 12 151

Enquiry by Customer for Soft drink

39%

61%

Yes

No

Enquiry by Customer for Soft Drink

No. of Retailers

Yes

59

No

92

Awareness of Margin for soft drink

46%

54%

Yes
Awareness of Margin

No
No. of Retailers

Yes
No Total

70
81 151

Those who keeps soft drinks

T ypes of Outlet
12% 4% 13% 3%

68%

Pan shops

Dairy Farms

Provision & Kirana Stores

Hotels & Guest houses

Others

Type of Shop Pan Shop Dairy Farm Provision & Glossary store Hotel & Guesthouses Any other

No. of Retailers 117 7 21 23 6

Total

173

Out let rating who keeps soft drinks

No. of Outlet
80 70 60 50 No of Outlet 40 30 20 10 0 A 71 53 36

3 B Rating C D

ALL SOFT DRINK IN MARKET

THUMS UP MAZZA SPIRITE DIET COCK PEPSI MIRINDA MIRINDA LIME AQUAFINA & DUKS SODA SABRAS LOCAL SODA & OTHERS DAIRY PRODUCTS

FANTA COCACOLA LIMCA KINLY SODA & WATER 7UP DEW SLICE SOSYO SABRAS GREEN RC COLA

Products
THUMS UP FANTA MAZZA COCACOLA SPIRITE LIMCA DIET COCK KINLY SODA & WATER PEPSI 7UP MIRINDA DEW MIRINDA LIME SLICE AQUAFINA & DUKS SODA SOSYO SABRAS SABRAS GREEN LOCAL SODA & OTHERS RC COLA DAIRY PRODUCTS

% share in mkt
19 9 12 5 11 6 2 1 14 3 1 5 1 2 2 1 1 1 1 2 2

Market share of CocaCola company products

2% 2% 16% 8%

32%

10%

13% 17%
Coca cola Thums up Mazza Fanta Limca Sprite Diet coke Kinely soda & Water

Market share of Pepsi company products

4% 6% 5%

49% 20%

5% 11%
Pepsi 7up Mirrinda Dew Slice Mirrinda Lime Dukes & aquafina

Market share of other product available in market

11% 4%

13%

11%

9%

6%

17%

9%

20% RC Cola Sabras Green Dairy items sosyo Local soda Packed fruite juice Sabras Falavoured milk Frootie

Actual selling of cold drink in market by size

300 250 200 150 100 50 0 200 ml 250 ml 300 ml 500 ml 1 Lit 1.5 Lit 2 Lit Size of soft drink

Ranking of Selling on the basis of Size of the Bottle 200 ml

% Weightage
32

250 ml
300 ml

7
20

500 ml
1 Lt

17
3

1.5 Lt
2 Lt

13
8

Total

100

Brand comparison

THUMS UP + COCA-COLA FANTA

PEPSI MIRINDA

MAZZA
SPIRITE LIMCA KINLY SODA

SLICE
DEW + 7UP MIRINDA LIME DUKES

Weighted Rating (in%)

Weightage of the Coke Services on Different Factors

12 10 8 6 4 2 0
Delivery Time Frequency of Visit Credit Period Salesmans Behaviour. Product Availability

Advertisements & Promotions

Factor

Factors (Coke) Delivery Time Frequency of Visit Credit Period Salesmans Behaviour. Product Availability Advertisements & Promotions Gifts Schemes Point Of Purchase Sales Generating Assets Visit by Company Person Total

% Weightage 10 9 8 10 8 10 8 9 10 9 9 100

Sales Generating Assets

Point Of Purchase

Schemes

Visit by Company Person

Gifts

Weightage of the Pepsi Services on Different Factors

Weighted Rating (in %)

12 10 8 6 4 2 0

Salesmans Behaviour.

Delivery Time

Product Availability

Point Of Purchase

Frequency of Visit

Credit Period

Factors
Factors (Pepsi) Delivery Time Frequency of Visit Credit Period Salesmans Behaviour. Product Availability Advertisements & Promotions Gifts Schemes Point Of Purchase Sales Generating Assets Visit by Company Person Total % Weightage 10 10 7 10 8 10 9 9 10 8 9 100

Advertiseme nts &

Sales Generating

Visit by Company

Gifts

Schemes

Priority of expectation from the Company

35 30 25 20 15 10 5 0

Weighted (%)

22

23 11

26 12 6

Freq of Visit

Salesman's Behavior

Delivery Time

Credit Period

Factors

Priority of Expectations Delivery Time Freq of Visit Salesman's Behavior Product Availability Credit Period Product Presence Total

Product Availability

% Weightage 22 23 11 26 12 6 100

Product Presence

Comparision of Service Factor in Monopoly Counter

0.4 0.3 0.2 0.1 0

weightage

POP

A. & P.

SGA
SGA

Gifts

Factors Pepsi Coke

Comparison of Service Factor in Monopoly Counter

D. T.

F. V.

C. P.

S. B.

P. A.

A. & P.

Gifts

Schemes

POP

Visit by Company personnel

Peps i

0.33

0.31

0.22

0.32

0.24

0.29

0.27

0.3

0.33

0.3

Visit by Company
0.28
0.23

Coke

0.27

0.32

0.2

0.34

0.22

0.33

0.27

0.3

Schemes
0.3

D. T.

C. P.

F. V.

S. B.

P. A.

0.35

Comparision of Service Factor For Those who Keep Both

12 10

Weightage

8 6 4 2 0

Pepsi Coke

O P

D .T .

G A S V is it by

es

C .P

ch em

.&

F.

Factors

Comparison Of Service Factor For Those Who Keep Both

C om

pa ny
SG A Visit by Company Personnel

.B

.A

G ift

D. T.

F. V.

C. P.

S. B.

P. A.

A. & P.

Gift s

Schem es

PO P

Peps i Coke

10

7.5

9.5

7.5

10

9.5

10

8.5

9.5

7.5

10

10.5

8.5

9.5

10

Competitive Analysis of Those who keep both

Average Selling Per Outlet (Coke) 30 25 Average Selling Per Outlet (Pepsi)

No of Bottle

25 20 15 10 5 0

22

6.8 6.4

5 4.9

2.7 2.5

2.4 2.2

1.2

1.1

200ml

300ml

500ml

1Lt

1.5Lt

2Lt

Types of Bottle

Those who keep both

200ml

300ml

500ml

1Lt

1.5Lt

2Lt

Average Selling Per Outlet (Coke)

25

6.8

2.7

2.4

1.2

Average Selling Per Outlet (Pepsi)

22

6.4

4.9

2.5

2.2

1.1

Competitive Analysis of Monopoly counters

Average Selling Per Outlet (Coke) 35 30 25 20 15 10 5 0 28 23 Average Selling Per Outlet (Pepsi)

No of bottles

6 2 2

200ml

300ml

500ml

1Lt

1.5Lt

2Lt

Types of bottle

Monopoly Counters

200ml

300ml

500ml

1Lt

1.5Lt

2Lt

Average Selling Per Outlet (Coke)

28

Average Selling Per Outlet (Pepsi)

23