coca-cola project

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A Project Report ON A STUDY OF CONSUMER PREFERENCE TOWARDS COLD DRINKS AT COCA-COLA BEVERAGE PVT. LTD., KANPUR Project Guide: Mr. Prashant M. Deposited By- Raunak Gupta M.B.A. 2 nd year Enroll. No.- 4740800436

Transcript of coca-cola project

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A Project Report

ON

A STUDY OF CONSUMER PREFERENCE TOWARDS

COLD DRINKS

AT

COCA-COLA BEVERAGE PVT. LTD.,

KANPUR

Project Guide: Mr. Prashant M.

Deposited By- Raunak GuptaM.B.A. 2 nd year

Enroll. No.- 4740800436

ANNAMALAI UNIVERSITY

DIRECTORATE OF DISTANCE EDUCATIONANNAMALAI NAGAR

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TABLE OF CONTENTS

Acknowledgement Declaration Preface Certificate from Head of Institute Certificate From company

Section – A

Industry and Company profile

EXECUTIVE SUMMARY

COMPANY PROFILE

ORGANIZATIONAL STRUCTURE

PRODUCT OF THE COMPANY

COPETATIVE AREA

SWOT ANALYSIS OF COMPANY

MARKETING STRATEGY OF THE COMPANY

INTRODUCTION OF PROJECT

RESEARCH OBJECTIVE

Section – B

Research Methodology

RESEARCH METHODOLOGY

DATA ANALYSIS & FINDINGS

LIMITATIONS

RECOMMENDATIONS

CONCLUSIONS

ANNEXURE

QUESTIONNAIRE

LIST OF RETAILER

BIBLIOGRAPHY

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ACKNOWLEDGEMENT

I am grateful to Mr. Israr Ahmad (A.S.M) of Coca Cola Company, who has given an opportunity for me to work in Coca Cola Company.

I would like to thank to my institute also where I got all

the knowledge and skills required for this research

project. I also want to thank to Marketing Faculty Mr.

Prashant M who took our project seriously and kept

check on this time to time.

Without the co-operation of the above person this work

Certainly would not have been as good as, it is now.

Raunak Gupta

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PREFACE

Soft drink includes all types of non alcoholic carbonate flavoured or otherwise

sweetened beverages. Soft drinks are mostly packaged in 200 ml, 300 ml, 500

ml, 1000 ml, 1500 ml, and 2000 ml and comes in a variety of flavours. It also

comes in glass as well as in plastic bottles.5ince so many changes and

transformations are under going ever changing consumer demands, Govt.

Policies and innovative packaging. Then industries are much emphasizing

advertising to increase its sales.

With the introduction of fruit pulp based soft drinks, packaged in cardboard

cartoons known as "TERRAPACK" has been introduced in the market. The

bottled soft drink market has undergone a marginal decreases in demand After

1994 the eminent re-entry of coca-cola in Indian soft drink Industry it is heading

for two giants war to capture the market. It has introduced various sharp and

efficient tools say tour packages, prizes gift other avenues to enhance social

status and satisfying personal egos also.

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EXECUTIVE - SUMMARY

This project was undertaken during the summer Training. A great deal

of effort has been put in preparing the questionnaire, in order to

understand the market better {Ghaziabad}.

Objectives: -

1. Extent to which merchandising assets are being used by the

retailers in promoting the brands.

2. Market demand of Coca Cola and Thums-up vis-à-vis Pepsi.

3. Market demand of Fanta vis-à-vis Mirinda-O

4. Market demand of Limca, Mountain dew, Sprite and 7up vis-à-vis

Mirinda-L

5. Market demand of Maaza vis-à-vis Slice.

6. Market comparison of all the available brands of the soft drinks in

the market.

7. Brands availability of Coca-cola and its brands vis-à-vis Pepsi and

its brands.

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A BRIEF DESCRIPTION OF THE FINDINGS:

1. Extent to which merchandising assets are being used by the

retailers in promoting the brands: -

Retailer who are having DPS Boards / GSB and other display material

like stands, posters etc. were selected. Display material on the retailers

shop was given rank between 1, 2 and 3 according to their visibility. If

the DPS Boards / GSB and other display material were found visible at

first sight then they have been ranked '1st', if they were found visible at

second sight then they have been ranked '2nd' otherwise '3rd'.In the

similar fashion ranks were allotted to the refrigerators in the retailers

shop.

While entering each shop it was taken care that the display materials are

properly ranked according to there visibility and incase of confusion,

opinion of the consumers were taken. Those shops with GSB’s were

visited during the evening in order to see there visibility. In these cases

some glaring facts were found. (Areas which were looking like monopoly

markets of Coca-Cola because of its Red-color during the day had

altogether a different look in the evening. They turned into Pepsi

monopoly during the evening because of the GSB's. Researcher have

also tried to find out what are the difficulties retailers are facing on using

these brands up to 100% of their strength.

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2. Market demand of each of Coca-Cola's product vis-à-vis to their

competitor flavours in Pepsi's artillery: -

For this, retailers were asked about the market demand of the different

brands and they have been asked to rank the brands with respect to

their competitive flavors. In this also some interesting facts came out

like no lemon brand exists in front of Coca Cola. Our Limca, which we

were thinking that it will be competing with Mountain dew, actually it is

grabbing the Coca-Cola's Sprite’s market and Pepsi’s, 7up's market.

In case of Mirinda (O) and Coca-Cola's Fanta, Mirinda’s market is

going up day by day.

In case of mango drinks Slice even after entering the market so late has

been able to quickly pick up with Maaza. From the day Tetra Slice has

entered the market it has captured the market of Frooti.

In case of Aquafina, Coca-Cola's Kinley stands nowhere but brands

which are competing with kit are Paras, Bisleri, and Kingfisher.

3. Market comparison of all the available pickings of the soft drinks

in the market: -

In the market this study is done to find out that on which packing,

company should concentrate more. From the day company has

introduced its 200ml packs, Coca-Cola is more economical for the lower

income grade consumers like Riksha-pullars and others.

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4. Brands/ Pack availability of Coca-cola and its brands vis-à-vis

Pepsi and its brands: -

For this study, retailers were asked that how many bottles they are

having in their fridge and how many of them are of the brand whose

fridge they are having and about the capacity of their fridge. In spite of

these findings Researcher have worked on some other things like

retailers expectations from the company. He tried to find out how the

company can increase the sales. In the answer to this some funny

recommendations came up (some consumers recommended that Pepsi

should change the percentage of the sweetening content of its cola

drinks). Secondly he tried to find out what are the problems they are

facing in promoting Pepsi.

“Jo Dikhta Hai Wo Bikta Hai”

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COMPANY PROFILE

If we Indians recall our memory there was a time when one was

asked for a soft drink, the brand that comes and gave a knock on our

mind was Coca-Cola. Coca-Cola, the word most admired trademark has

maintained its special a sense of belongingness to India, which had

resulted some sort of its monopoly throughout the Indian soft drink

market. It has been said that the internal environment of the industry has

been greatly effected from its internal environment. The same thing was

also happen with this famous company. When the Government policy

were in introduce and forced this MNC's to go outside from the India

market. Hence, it was thrown out of India in the year 1977. A lacuna was

created at that time in the country's soft drinks market. How ever after a

gap of 17 years, the Coca-cola has reappeared in the soft drinks market

of India, by making itself more strong and confident in this field.

In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a

70% share, Lemon 10% and Orange 20%. There appears to be a

concentrated rush to bag a share in the soft drinks market. Due to a

manifold increase in the demand of soft drinks large number of company

has entered into this competitive market scenario.

In India two major companies engaged in soft drinks market are

Pepsi and Coca-Cola. While RC cola is still a novice in the Indian

Market, although it being the world oldest soft drinks manufacturer.

Pepsi-Cola attacked Coca-cola before World War-II. Coca-Cola

dominated the Americans soft drinks industry. Pepsi-Cola was a drink

costing less to manufacturers and with a less satisfactory taste than

coke.

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During the Second World War Pepsi and Coke, both of them

enjoyed a huge sale. After the war the Pepsi sales started to fall

relatively to Coke. The factors which were responsible for the decline in

Pepsi sales were poor image, poor task force, poor quality control and

dull packaging.

It was a momentous day when Coca-Cola staged its reliance in

India. Coca-Cola was relaunched again in India in Sep. 1993 at Hathras

near Agra, where the first bottling facility of Coca-Cola in India was

switched on. The Indian people welcomed the come back of their most

loved cola in the country with great enthusiasm and vigor. Coca-Cola

market its relaunching acquiring 5 Parle Exports Ltd. Top Selling

products Viz-Thums up, Sprite, Limca, Fanta, Mazza, K.

Soda,Kwater,Coke.

In 2000, the company opened a new bottling plant at Dasna in

Agra distt. For the supply of 300 ml Bottle and 1.5 liter Bottles. This plant

is more settled equipped than the plant at Ghaziabad.

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A 100 YEARS OF THE SURVY GLASS BOTTLE OF COCA-COLA

Coca-Cola Company marks a mile stone on Wednesday, 24th March

1899 Chattanooga; Tenn where its first bottling plant was started 100

year ago by two men struck one of the most lucrative business deals in

US history. Joseph Whitehead and Benjamin Thomas offered Coca-Cola

Company owner Asia Candler a dollar for the right to bottle soft drinks in

1899. Today I 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 thought the bottling Venture would

never succeed, but he signed the contract with White Head And Thomas

and 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 that's how it

all came about. "Thomas and Whitehead promised to pay one dollar for the right to bottle

Coca-Cola, but legend has it that no money changed hands.

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THE IMAGE

The image is communicated all around the world in advertisement on

media such as newspaper, magazines, radio and televisions. The list

goes on....

However, image is much than just advertising every person working

within the coca-cola system is part of the image whether one is involved

in creating its advertising, making it's quality products, or selling,

merchandizing and distributing its beverage their hard work and attitude

will say something to the people about its product.

COCA-COLA SYSTEM FLOW CHART

Raw Material

Coca-Cola Company

Bottler

Customer

Consumer

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COCA COLA: THE STORY BEHIND

Coca-Cola was formulated in 1886 by Dr. John Pemberton, a

Pharmacist in Atlanta, Georgia. The drink was sold ad refreshing elixir at

the fountain counter of Jacob's Pharmacy of which Dr. John Pemberton

was part owner, unaware that the pharmacist had given birth to a

caramel colored syrup which is now the chief ingredient of the worlds

favorite drink. Today the white-on-red flow of Coca-Cola is familiar sight

in more then 195 countries. The syrup combines with the carbonate

water to fuel a $ 16.2 billion corporation that has captured a 46% Slice of

the global soft drinks market. The company estimates that the drink is

served more than 773 million times every day and if all Coke ever

produced were filed in standard bottles and placed end to end it would

wrap around the equator 21, 161 times.

The story of Coca-Cola is a story of a drink and its charm with the

consumer. The of ecstasy and again that the drink has caused to those

dedicated to its growth Pemberton first managed to sell and average of 9

drinks per day, though a shop called Jacob's pharmacy, in 1891,

Candler bought Coca-cola company with four companies he formed the

coca-cola company with the initial stock of $100,000. Coca-Cola was

registered at the US patent office in 1893, and began selling at soda

fountains for 5 cents a glass of therapeutic refreshment 1894, I got into

bottles, courtesy a candy merchant Joseph Boedenharn of Mississippi.

Five years later; the drink was being bottled on a regular basis under a

region wise franchising system; and its first competitor Pepsi cola, Coca-

Cola's first bottling plant opened in Chatanooga, Tennessee followed by

another in Atlanta in 1900. The unique taste of cola was an outstanding

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success. Over the next two decade the number of plants crossed 1000.

In a bit to difference the prodect, the company adopted 6.5 ounce, pale

green countor bottle designed by the root glass company of Terri Haute,

Indiana. Today it is an intrinsic part of the brand.

The company broadened its horizons when Robert Woodruff the son of a

banker who acquired to Company for $25 million in 1919, assumed

charge in 1923. He began by ungrading bottling operations, brought in

innovations like a six-bottle carry home carton, and gear up advertising

support. It was under Wood Ruff that the brand. Known affectionately as

coke by now associated it self with sportive events. By the early 1940's

the brand was selling as the "real thing" to set it self apart from "me to"

cola's.

As a time went by the company brought out some new aerated drinks.

The first one "Fanta" appeared in the selves in 1960.

Its birth was an accident, the company's German name is an attempt to

produce Coca-Cola without some key ingredients, turned out into an

orange flavored drink instead. its strategists who feared the dependence

on just one put a cap on growth welcomed it. While Fanta was being

rolled out the company bought minute made cosrp. Which in 1967 was

combined with Duncan foods to pave way for the Coca-Cola foods.

Several beverages followed the most notable being 'sprite', a lemon

drink developed in the late 1950 and formally launched in 1961.

Coca-Cola had diversified the company into businesses and it even had

a steam generator and boi8ler making division. Robert C Goizueta,

Cuban born 27 years veteran took over as the Coca-Cola unlike Pepsi

company depended on a single brand. The best insurance policy that he

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figured was to let coke evolve to the summer slacking it with variants,

even reinventing if needed. In 1982, the company launched what is now

considered among the world's most successful brand extensions 'Diet

Coke', under the leadership of Sergio Zyman, the head of us marketing.

The idea was to retain the loyalty for the health conscious drinker who

loved the taste but hated the calories. After this it came out with cafeeine

free versions of its main drinks. yet in the US the company kept losing

ground to Pepsi. zyman, a former Pepsi marketer argued that the correct

strategy was to replace 98 year old with better tasting cola, label it as

"New Coke" and blare the news which is exactly what the company did

more a decode age in 1985. But when placed on the shelves it did not

budge. On wide spread protest it was recalled after 79 days.

The company has about 100 brands in its portfolio but coke, Fanta and

sprite account for most of its sales. In 1994, the real thing's coke sold

over 52.5 billion liters. For the taste of it diet coke along with Coca-Cola

light sold 8.5 billion liters, which makes it the world's two top non cola

drinks sold over 6.5 billion liters each. Which sprite aimed at the

independent youngster two does not care what as others drink (the as

line "obey you're a thrust"). In 1993, Coca-Cola reentered India after a

16 years ling exile, four years Pepsi made its debut India. While Coke

plays on brand nostalgia. Pepsi address the young crowd, which unlike a

in America is a dominate ort if the population here.

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THE COCA - COLA COMPANY

The Coca - Cola Company is the world's largest beverage company.

Along with Coca - Cola, recognized as the world's best - known brand,

The Coca - Cola Company markets four of the world's top five soft drink

brands, including diet Coke, Fanta and Sprite, and a wide range of other

beverages, including diet and light soft drinks, waters, juices and juice

drinks, teas, coffees and sports drinks. Though the world's largest

distribution system, consumers in more than 200 countries enjoy The

Coca - Cola Company's products at a rate exceeding 1 billion servings

each day. For more information about the Coca - Cola Company, please

visit our website at http: // www.coca- cola.com/.

Forward - Looking Statements

This press release may contain statements, estimates or projections that

constitute "forward - looking statements" as defined under U.S. federal

securities laws. Generally, the words "believe," "expect," "intend,"

"estimate," "anticipate," "Project," "will" and similar expressions identify

forward - looking statements, which generally are not historical in nature.

Forward - looking statements are subject to certain risks and

uncertainties that could cause actual results to differ materially from The

Coca - Cola Company's historical experience and our present

expectations or projections. These risks include, but are not limited to,

changes in economic and political conditions, changes in the non -

alcoholic beverages business environment, including actions of

competitors and changes in consumer preferences; product boycotts;

foreign currency and interest rate fluctuations; adverse weather

conditions; the effectiveness of our advertising and marketing programs;

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fluctuations in the cost and availability of raw materials; our ability to

achieve earnings forecasts; regulatory and legal changes; our ability to

penetrate developing and emerging markets; litigation uncertainties; and

other risks discussed in our Company's filings with the Securities and

Exchange Commission (the "SEC"), including our Annual Report on

Form 10-K, which filings are available from the SEC. You should not

place undue reliance on forward - looking statements, which speak only

as of the date they are made. The Coca Cola Company undertakes on

obligation to publicly update or revise any forward - looking statements.

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ORGANIZATIONAL STRUCTURE

CHAIRMAN

PRESIDENT

VICE PRESIDENT

R.G.M.

A.G.M.

I.S.M.

F.M. S.M. P.M. H.R.M.

M.O.E. A.S.M. S.E.

S.E. S.E. S.E.

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Where,

R.G.M. : Regional General Manager

A.G.M. : Area General Manager

I.SM. : Information System Manager

F.M. : Finance Manager

S.M. : Sales Manager

P.M. : Production Manager

H.R.M. : Human Resource Manager

A.S.M. : Area Sales Manager

M.O.E. : Marketing Operation Executive

C.D.E. : Cold Drink Executive

S.E. : Sales Executive

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PRODUCT PROFILE OF Coca-Cola

The product range of the coke has listed brands:

Coke : 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt

Thumps UP: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Limca: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Fanta: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Sprite: 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Mazza: 250 ml, Tetra Pack

Diet Coke: 330ml, 1.5 lt, 2lt.

Kn. Soda: 300ml, 500ml,

Kn. Water: 500ml, 1lt, 2lt,

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Some facts About Coca Cola Pvt Ltd

Head office Atlanta (U.S.A)

Corporate office Enkay Towers,

Udyog viharV,

Gurgaon,Haryana

Chief Executive officer Alex von Behr

Total Investment Rs.3200 Crore

Owned Bottling Plants 35

No. of Franchisees 16

No. of Employees 6000

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THE FUTURE OF COCA-COLA

While dong 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 1999. But the company

optimistic about the future.

Mc-Douglas Investor, The Chief Executive Officer of the Coca-Cola

Company says, "This past year 1999 has been a challenging period for

the Coca-Cola Company as economic environment became more

uncertain in the later part of 1999, we strongly believe that our

fundamental opportunities for long term growth have not changed".

As long as maximization of share holder wealth remain coke's focus for

its future4 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 hat coke does not enjoy volumes for it is

world's 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.

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COKE'S 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 Goiueta's 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.

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MARKET PLACE

More than a billion times everyday, thirsty people around the world reach

for Coca-Cola products for refreshment. They deserve the highest

quality-every time. Our promise to deliver that quality is the most

important promise we make. And it involves a worldwide, yet distinctively

local, network of bottling partners, suppliers, distributors and retailers

whose success is paramount to our own. Our investment in local

communities in over 200 countries totals billions of dollars in jobs,

facilities, marketing, the purchase of local goods and services, ands local

business partnerships, always and everywhere, we pursue continuous

innovation in the products we offer, the processes we use to make them,

the packages we develop and the ways we bring them to market.

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COMPETITOR

The biggest and perhaps the only serious for the coca-cola

worldwide has an already been Pepsi. In India, as per as the Cola

segment is concerned the with the biggest competition to coke comes

from its brands of Pepsi viz. Pepsi and Mirinda. Thums-up, which was

the leading brand of Parley product, was acquired by Coca-Cola just

over a year ago to bolster its market share in India. Today, Thums-up

along with coke, the leading brand of the Coca-Cola Company, other still

competition to Pepsi, which despite this stiff competition is still by far the

single most popular Cola drink in India

With both the companies being backed fully by the parent

concerns based in the united state, the fight to become the dominant

player in the huge Indian Soft drink market continues unabated.

Aggressive ad campaign's, sale-promotion, schemes for retailers are just

some of the strategies being adopted by the two companies to outwit

each other and grab and large share of the market.

In the Cola segment, which occupies by far the largest chunk of

the soft drink market in India, the market share of Coke is 60%while the

market share of Thums-up is 32.16%. The market share of Coke in this

Cola Segment is 27.84%. The remaining market share is occupied by

the other brands, which constitute about 14% of the Cola market share.

So Coca-Cola with its two brand clubbed together i.e. Thums-up +

Coke occupies a combined market share of 60% (32.16% + 27.84%)

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which is just higher than the market share occupied by Pepsi on the all

India basis.

The market share for the Cola segment of different in India is given in

Graph below:

The fight between the Rs. 1,000 Crore Pepsi co. India. Pepsi and

Coca-Cola India, The fully owned subsidiary of the $ 18.55 Billion Atlanta

based "The Coca-Cola' company to become India's No. 1 player seems

likely to continue unabated over the next four years".

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PEPSI PROFILE

Pepsi Co. Inc. was founded in the year 1965. Major products of the new

company are Pepsi Cola. Diet Pepsi and Mountain Dew. Pepsi entered

the Indian market in 1992 and now is the market leader with a market

share of 26.5 percent in the cola segment. Pepsi is in between the two of

it's closet competitors as far as marketing strategies are concerned.

Pepsi is an international drink with Indian imagery in it's communication

Traditional focus of Pepsi has been on the early teenager with a gender

skew more to the female.

Pepsi is by far the more aggressive player in the market. With in your

face advertising continuous event marketing targeting the new

generation and eye catching merchandising. It's got its selling strategy

well mapped out.

The company has always been innovating it's ad campaigns which has

helped the company to get top of the mind recall. From "The choice of

the new generation" to the "Freedom" campaign the company has been

able to Indianise the brand. With the help of promotional schemes Pepsi

has managed to keep the brand alive and has not let it become old.

During 1995 the total ad spent by the company was Rs. 6.98 crore only

on television Pepsi has set aside Rs. 8 crore for its advertising

programme in the run up to and during the cricket world cup.

Product lines of Coke& Pepsi are as follows:-

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FLAVOUR COKE BRAND PEPSI BRAND

Cola Coca-Cola

Thums-up

Coke diet

Pepsi

Pepsi diet

Orange Fanta Mirinda

Cloudy Lemon Limca Mirinda lime

Clear lime Sprite 7up

Mango Maaza Slice

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COMPETITIVE AREA

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 to 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 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 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

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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 tot he inter. Coca-Cola is

well set with its 53 bottling sites through out the country giving tit 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 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, it's 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 Sachin Tendulkar,

Akshay Kumar and now Shahrukh Khan in 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.

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Coca-Cola on the other hand, has been working on the saying slow and

steady wins the race's side by retailing to every more of its competitor.

They have procured the shield of Thums-Up with a handsome market

share in Indian soft drink market.

Countering Pepsi's international commercial that used two chimpanzees

to cock a snoop at coke, Thums-up come with the ad line, Don't be

Bandar, taste the Thunder. Also Thums-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 Thums-Up projected as 'Saaree Jahan

Se Achcha' Pepsi was passionate enough with 'Freedom to be' and

now the "Yeh Dil Mange More" when Thums-Up came with Thunder

Blast, the other offered 'Pepsi Stuff Card'. If Red is meant for coke,

Pepsi has chosen to be blue.

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MAIN COMPETITORS

COCA-COLA V/s PEPSI

Coca-Cola Pepsi

Total Investment in India Rs. 250 Crores Rs. 500 Crores

New Investments Rs. 2400

Crores

Rs. 300 Crores

Number of Employee 140 2400

Number of owned bottling

Plants

9 11

Number of Franchisees 54 15

Number of Fountain 1500 4000

Total Investment by bottlers Rs. 125 Crores Nil

New Plants Planned Nil 6

(Data of 2005-06 )

Overall volume of Coca-Cola products have increased by 40% whereas

the industry growth rate is 20%. Last year total sale of soft drink Industry

in India was approximately 170 million crates. Out of these around 60%

was of Cola and other 40% was of non-Cola Brands.

Sources of Data :- This Last Year data is provided by Sales Executive of

Company.

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MARKETING MIX

Prof. Neil H Barden defines marketing mix as 'the appointment of effort,

the combination, the designing and integration of the elements of the

marketing into a programme of mix which will best achieve the objective

of the enterprise at the give time."

Marketing mix is the set of marketing tools that the firm uses to pursue

its marketing objective of in the target market. The marketing problems

are analyzed:

1. By utilizing the important forces emanating from the marketing

operation of an enterprise.

2. By adopting producer & for an efficient marketing programme.

ELEMENTS OF MARKETING MIX

The marketing mix denotes a combination of various elements

which in their totally constitute affirms marketing system. McCarthy

popularized a four factor classification of the se tools called the four P"s,

product, price, place promotion.

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PRODUCTS

Product variety

Quality

Design product

Brand name

Feature

Packaging

Size service

Warranties

Returns

PRICE

List Price

Discounts

Allowances

Payment period

Credit teams

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PLACE Channels

Coverage

Place assessments

Locations

Inventory

Transports

PROMOTION

Sales promotion

Advertisement

Sales Forces

Public relations

Direct marketing

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The particulars marketing variable under each P are shown below:

4 Ps 4 Cs

PRODUCT

PRICE

PLACE

PROMOTION

CUSTOMER NEED

AND WANTS

COST TO THE

CUSTOMER

CONVENIENCE

COMMUNICATION

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DISTRIBUTION IN THE COCA-COLA SYSTEM

GETTING PRODUCTS TO MARKETOne of the value of the coca-cola system is presence that coca-cola

should exist everywhere. In the words of former CEO-India operations -

Richard Nichoilas, "Our goal is to have coke available within an

arm's reach of desire". To fulfill this gool, coca-cola not only produces

products, but also has an effective systems to distribute them all over

India.

DISTRIBUTION

Distribution Sales + Delivery + Merchandising + Local Account

Managemetn.

Distribution of Coke's products includes the activities of sales, delivery

merchandizing and local accounts management. These are two major

types of distribution systems.

(i) Direct and Indirect

In direct distribution, the bottler partner direct control over the

activities of sales, delivery, merchandizing and local account

management.

In indirect distribution, an organization which is not a part of the

coca-cola system has control of one or more of the distribution elements

(Sales, Merchandizing and local accounts managements).

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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 coco-cola system.

Difference between a Customer and a Consumers.

A consumer is some one who drinks coca-cola products.

A customer is a business location which sells or serves coca-cola

products to consumers.

MERCHANDIZING

One the products are delivered to the customer's they are promoted at

the point-of-purchase to maximize the company's 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.

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PRESENTING THE PRODUCTS

Coca-Cola presents its products for sale in four different ways. They are

as follows:

Secondary Display

Coolers

Vending Machines

Post Mix / Pre Mix

INDIA'S RELATIONSHIP WITH COCA-COLA

Just after independence, the Maharaja of Patiala oversaw his coca-Cola-

Cola hoarding from his huge, ornate palace, Coca-Cola export

representative Frank Harrold, was awed by the Maharaja's opulent life

style. In 1993 after Coca-Cola returned to India after a 16 years absence

(beorge 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, Robesto boirueta "Salivated over a virtually

untapped market of 840 million people".

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PROMOTION : THE COCA-COLA WAY

Goal for the 90's

"To place coca-cola within an arm's reach of desire.

Consumer activity clusters:

Grocery shopping

Other shopping & services

Eating and drinking Entertainment/ Recreation. Leisure

Travel / Transportation/ Hospitality

Educational

At Work

The 3A's:

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.

Strategies for the 3A's

Focus on the consumer and customer,

To provide quality customer services, and caring about the quality of

performance in respective jobs.

Caring enough about what we do, to it the best we know how.

The 3A's is Coca-Cola underlying strategy for meeting its goal to reach

increasing numbers of consumer's. 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 3A's.

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AVAILABILITY

Some of the way sin which the Coca-Cola Company hopes to increase

availability of its product include improved or innovative packaging,

dispensing systems, distributions system, 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

occasion's depends on a variety of strategies to reach the target

audience. The common strategies adopted to effect acceptability were

though sponsorships, promotion youth market activities, community

programs, and other activates.

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SWOT ANALYSIS

STRENGTHS:

Coke Company has a good market reputation and a strong

distribution network.

Coke is having a multi brand strategy ad is looking for a great

volume opportunity in India.

Coke is presently no. 1 player in Indian Carbonated soft drinks

market.

Coke was born 11 year before Pepsi (in 1987) ad a century later

still maintains that pioneering least.

Pepsi and coke both have good brand image.

WEAKNESS:

Coke has less no. of retailers

Less force - it has less no. Have owned bottling plant.

It has not planned for setting up of any new plants where their

competitor has planned to set up several new plants.

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OPPORTUNITY:

A rapidly growing market, which is expanding @ 205 every

year.

It can take the market very well with the new investment of Rs.

2400 corers.

It can give a big jerk to its major competitor Pepsi it can

increase its number of fountain to a sizeable amount.

Increasing trend of cold drink of different brands.

THREATS:

It has a continuous threat from Pepsi as well as various other

local soft drinks.

Coke has a major market than Pepsi between the teenager as

well as the student due to advertisement of world cup cricket.

A large amount of expenses on the advertisement.

There is no proper policy of distributing the merchandising

assets of the company to the retailers.

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MARKETING STRATEGIES

1) Coca-Cola sales club:

This club is for the retailers. In this approach retailers are given some

points once in a month depending upon how they are using the display

material provided by the company to them. This material consists of

Fridges, DPS Boards, Glow Sign Boards, Display Bottles (500ml. 1lt. 2lt,

Commodity Packs, Stands, Posters etc. Depending upon these points

retailers are rewarded by certain gifts from the company.

The retailers are participating in these schemes curiously. But few of the

retailers found furious and angry because they had lost the points

because of miscommunication or lack of guidance. Therefore they need

some kind of guidance from the company. It would be a better idea that

our salesman who are distributing the beverages to the retailers can be

equipped by the appropriate training so that they can guide the retailers

about how to use their display material to 100% of their strength and

able to tell about the new schemes convincingly.

2) Schemes:

Hindustan Beverages India comes out with the schemes on their

different products many times in a year. Most of these schemes are

made to benefit the retailers. Some of the schemes are as follows:

1 bottle of 2lt. free with one 2lt bottle pack.

1 bottle of 1lt. free with one 1lt bottle pack.

2 bottles of 500ml free with one 500ml bottle pack.

6 bottles of Kinley free with one pack of Kinley.

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These schemes keep on changing depending upon the stock.

Beverages companies are giving these schemes despite of acute

shortage of soft drink in every segment to meet the competition, to make

sure the availability their brands and sometimes to satisfy and benefit the

retailers and the end consumers.

3) Advertising:

Through the consumers survey it has been proved that the T.V.

commercials and sinages affect the consumer buying behaviour by

approximately 70%. May be only Cococola. is investing huge finances in

the T.V. commercials and other sinages, big names of Indian film

industries and sports hero’s are being proposed to become the brand

promoters and brand ambassadors. Amir Khan, Akshay Kumar, Hritik

Roshan, Riya Sen and more are being offered huge amount for carrying

out the promotions.

Posters

DPS boards

Glow Sign boards

Date calendars

Cinema hall tickets

Radio commercial

4) Promotion through restaurants and cinema hall holdings:

Coca-cola is tying up with different chains of restaurants and fast food

centers to promote the Coca-cola and its other brands like Limca,

Sprite, Maaza etc. these restaurants are authorized to keep and use

the merchandising assets of Pepsi. Usually these kinds of restaurants

and fast food chains are in contract with the Pepsi Co., so that they

cannot promote any other brand.

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5) Merchandising assets:

Coca-Cola also try to promote their brands by providing their retailers

and dealers some display items. Some of such items are as follows:

1. Fridges

2. Coca-Cola/Mazza stands

3. Display bottles

4. Posters 

Coca-Cola provide the above things to the retailers to use them in

promoting companies brands and products, and provide refrigerators to

the retailers in the hope that these retailers only use these assets in

promoting the Coca-Cola’s products and they will chill the Coca-Cola’s

products so that its products will always be available to the end

consumers. But it is not true in most of the cases. Retailers usually use

the merchandising asset of one company in such a way that it benefits

another company. Sometime they do it unknowingly, sometimes they do

it knowingly and sometimes because of the deficiencies of the company

itself. These deficiencies are as follows: -

1. Irregularity of the salesman to the retailers shop.

2. Shortage of the different products and different packages.

3. Sometimes because of the rude behavior of the salesman.

6) Strengthen distribution network and promotions through word of

mouth through sales man:

Unlike the rival brand Pepsi, Coca-Cola co.. Basically depends upon its sales man for promoting and launching the new as well as old brands because instead of doing the business through dealer’s network like Pepsi, Coca-cola believes in making and maintaining relations with retailers directly. Therefore salesman is the very important part of Coca-cola co. marketing strategy.

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INTRODUCTION

Every year with the start of summers in India the real race to quench the thirst of the consumers begins in the soft drink beverages industry. Every year millions participate in it, either in the hot sun or sitting at home watching their, sipping the soft drink and watching the newly launched advertisements.Lime n' lemoni Limca

Soft drinks manufacturers in India face a number of major problems, such as distribution difficulties. Access to the 500,000 villages is limited due to the poor road network. Inconsistent tax policies, the prevalence of duplicates, hefty packaging costs and India's seasonal nature are other factors holding back growth.

During New Year the two of the largest soft drink giants in India Pepsi and Coca-Cola start experiments with products, packages, flavors and prices in an effort to boost their market share. For this the biggies make huge investments in terms of advertising, setting up new and more productive and modernized plants, improving the distribution network to get better reach to the end consumer.

One of the areas where these companies are making huge investments is merchandising. This is the area where companies try to get the maximum display in the consumer’s eyes at the retailers shop through refrigerators, glow signboards, DPS boards, stands, posters, display bottles etc. But the question arises that whether these retailers are making the proper use of these materials, which the company is providing them. Are they using these materials to their optimum level in promoting the product of the company that has provided them the

merchandising material? Are the companies getting the optimum results

of the investments they are making in this area?

Researcher have tried to find out answers to the above questions in his

research work, which researcher has conducted during his summer

training during the partial fulfillment of his MBA programme.

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RESEARCH OBJECTIVE

PRIMARY OBJECTIVES:

To find out to which extent merchandising assets are being used

by the retailers in promoting the product of coca-cola

To find out Market demand of Coca Cola and Thums up vis-à-vis

Pepsi

To find out Market demand of Fanta vis-à-vis Mirinda-O

To find out Market demand of Limca, Sprite vis-à-vis Mirinda-L and

7up

To find out Market demand of Maaza vis-à-vis Slice.

SECONDARY OBJECTIVES:-

To find out Market comparison of all the available brands of the

soft drinks in the market.

Brands availability of Coca-cola and its brands vis-à-vis Pepsi and

its brands.

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RESEARCH METHODOLOGY

Researcher began his survey with route riding, i.e. traveling along with

the sales persons on his daily trip to service the retailers. Researcher

asked the retailers about their uses of Coca-cola merchandises and try

to Asses the market share of the Coca-cola’s different brands. This is

very important point as it gave me an inside view of the whole setup and

further on during the planning of any of the promotions. Researcher was

aware of the limitations and strengths of the environment he would be

working in. The various methods and principles adopted are listed below:

Research Plan:

Date sources: sources of information are as follows:

(1) Primary sources

Who’s the primary source??

Retailers are the primary source.

(2) Secondary sources – Researcher collected secondary information

from Journals of Company, News papers,Magazines.

Research Approach:

Researcher followed one approach to collect the information

(1) Survey – Researcher contacted the retailers in the market place to

gather the relevant information.

(2) Number of Retailers contacted – 200 Retailers.

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Survey Area: Kanpur & NEAR BY AREAS

1) Kanpur, Station road

2) Kanpur,Main market

3) Bhaguwala Market ,Kanpur Road

4) Kotwali market ,Lucknow road

5) Shanpur, Main Market

6) Raipur Market, Nagina Road

7) Haridwar road, Chidiapur

8) Kiratpur Market

Research instrument:

Researcher used questionnaire as his instrument for conducting the

survey.

Sampling Plan

(1) Sampling unit – Retailers

(2) Sampling procedure- Simple Random Sampling Procedure.

Contact Method

Researcher personally contacted the retailers.

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Where f = Feed Back (Help in Controlling the Sub System to Which it is transmitted ) Ff = Feed Forward (serves the vital function of providing criteria for evaluation)

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DATA ANALYSIS & FINDINGS

FFIGUREIGURE 1 1

Out of Coca-Cola and Pepsi Beverages India Limited whose GSB do you have ?

PBI11%

Coca-Cola14%

Both 5%

None70%

PBI

Coca-Cola

Both

None

Out of the sample size which has been covered only 11 % of the

shops had Pepsi’s GSB’s vis a vis to 14 % of Coca-Cola’s GSB’s.

14 % of the sample size had the GSB’s of both the major players

of the soft drink industry.

70% of the sample size didn’t have any of the GSB’s displayed.

GSB-GGSB-GLOWLOW SIGNSIGN B BOARDOARD

PBI-PPBI-PEPSIEPSI B BEVERAGESEVERAGES INDIND LTDLTD

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FFIGUREIGURE 2 2

Ranking according to visibility - Pepsi ?

72%

14%

14%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

49%

38%

13%

Rank 1

Rank 2

Rank 3

72% of the shops having Pepsi GSB’s got the 1st rank according

to their visibility status on the other hand only 14% of the retailers

got the rank 2nd and 3rd each. This shows that retailers who got the

GSB as display material from the company are using them

satisfyingly.

49% of the shops having Coca-Cola GSB’s got the rank 1st

according to their visibility status on the other hand 38% of the

retailers got the rank 2nd and only 13% of the retailers got the rank

3rd. This shows that in comparison to Coca-Cola, Pepsico.’s GSB

are being used in more proper way.

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FFIGUREIGURE 3 3

Out of Coca-Cola and Pepsi Beverages India Limited whose DPS Board do you have ?

PBI27%

Coca-Cola8%

Both 3%

None62%

PBI

Coca-Cola

Both

None

Out of the sample size which has been covered 27 % of the shops

had Pepsi’s DPS Boards vis -a -vis to 8 % of Coca-Cola’s DPS’s.

3 % of the sample size had the DPS Boards of both the major

players of the soft drink industry.

62% of the sample size didn’t have any of the DPS Boards

displayed.

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*DPS-*DPS-DISTRIBUTORDISTRIBUTOR PROMOTINALPROMOTINAL S SIGNAGEIGNAGE**

FFIGUREIGURE 4 4

Ranking according to visibility - Pepsi ?

82%

18%0%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

70%

18%

12%

Rank 1

Rank 2

Rank 3

82% of the shops having Pepsico. DPS Boards got the rank 1st

according to their visibility status on the other hand 18% of the

retailers got the ranks 2nd and nobody got the 3rd. This shows that

retailers who got the DPS Boards as display material from the

company are using them satisfyingly.

70% of the shops having Coca-Cola DPS Boards got the rank 1st

according to their visibility status on the other hand 18% of the

retailers got the rank 2nd and only 12% of the retailers got the

rank 3rd. This shows that in comparison to Coca-Cola, Pepsico.’s

DPS Boards are being used in far more satisfyingly.

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FFIGUREIGURE 5 5

EMBED Excel.Chart.8 \s

25%

37%11%

27%

PBI COCA-COLA BOTH OWN

Out of the sample size, which has been covered 37% % of the

shops, had CocaCola’s refrigerator vis a vis to 25 % of Pepsi’s

refrigerator. This shows that percentage distribution of the

refrigerators of Coca-cola co. is more than Pepsico. .

11 % of the sample size had the refrigerator of both the major

players of the soft drink industry.

27% of the sample size didn’t have any of the company’s

refrigerators; they are using their own refrigerators for the chilling

purpose.

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FIGURE 6FIGURE 6

Ranking according to visibility - Pepsi ?

68%

24%

8%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

33%

67%

0%

Rank 1

Rank 2

Rank 3

68% of the shops having Pepsico. refrigerators got the rank 1st

according to their visibility status on the other hand only 24% of the

retailers got the ranks 2nd and 8% of the retailers got the rank 3rd.

This shows that retailers who got the refrigerators as display

material from the company are not using them satisfyingly.

Only 33% of the shops having Coca-Cola refrigerators got the

rank 1st according to their visibility status on the other hand 67% of

the retailers got the rank 2nd and none of the retailers got the rank

3rd. This shows that in comparison to Coca-Cola, Pepsico.’s

refrigerators are being used in far more proper way.

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FIGURE 7FIGURE 7

PBI, 4260

Coca-Cola, 3368

0500

1000

1500

2000

2500

3000

3500

4000

4500

PBI Coca-Cola

How many Bottles of PBI/ Coca-Cola do you have in your fridge

PBI

Coca-Cola

FFIGUREIGURE 8 8

In the CocaCola’s refrigerators 56% of the Pepsi bottles were

found. This shows that CocaCola’s refrigerators are not being

used to optimum by the retailers in promoting CocaCola’s

products.

FFIGUREIGURE 9 9

Availabity Comparision between Pepsi and Coca-Cola at the Outlets - using Coca-cola Merchandising Asset

PBI56%

Coca-Cola44% PBI

Coca-Cola

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Reasons for not optimum use of Refrigerator / Ice Box at outlets ?

Shortage 13%

Problem of the Empty bottle

17%

Irregularity of the Salesman

34%

Other36%

Shortage

Problem of the Emptybottle

Irregularity of the Salesman

Other

FFIGUREIGURE 10 10

Other Reasons for low optimum use of Coca-cola' s Assets

Low Demand34%

Smaller Fridge 33%

Unfulfilled promises from the Company

Representatives22%

Others11% Low Demand

Smaller Fridge

Unfulfilled promises from theCompany RepresentativesOthers

Page 65: coca-cola project

While giving the reasons for not using the Coca-Cola’s

refrigerators 34% of the retailers blame it to the lack of regular

services from the company (irregularity of the salesman), 17% of

the retailers voted to the problem of the empty bottles of Hindustan

Beverages India, 13% voted for the shortage of the different

packing.

Despite of all the above reasons a huge segment 36% blame it to

different other reasons for below optimum use of refrigerators.

Out of the 36% other major reasons low demand (33%) and lesser

capacity refrigerators (34%) got the maximum share.

Despite of all the above there are even major number of retailers

who blame it to the unfulfilled promises from the company

professionals.

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FFIGUREIGURE 11 11

FFIGUREIGURE 12 12

Approximate sale of the retailer

0.5 to 28%

3 to 546%

6 to 1028%

More Than 1018%

The sample size shows that maximum portion (around 46 %) of

the retailers whose sale are between 3 to 5 crates daily and only 8

% are the ones who are selling less that two crates.

Approximate sale of the retailer

0

1020

3040

50

6070

8090

100

0.5 to 2 3 to 5 6 to 10 More Than 10

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FFIGUREIGURE 13 13

How the retailler gets display material from the company ?

0

10

20

30

40

50

60

70

Schemes Gift Sharing / Draft Other

FFIGUREIGURE 14 14

How the retailler gets display material from the company ?

Schemes33%

Gift 40%

Sharing / Draft 21%

Other6%

The sample size gives us the brief idea about the pattern of

distribution of merchandising assets by the companies. Most of the

retailers (around 73%) are getting the display material through

different schemes or as the gifts.

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FFIGUREIGURE 15 15

This gives us an indication, where the better prospects lies. In

which particular type of packing little innovation can do wonders.

This provides us with an idea where we should concentrate.

The sample size shows that there is huge demand of 2lt pack

(26%) and 200ml bottles (30%).

300ml bottles with 23% shares the 3rd position and 500ml. Shares

the 4th position of the demand total demand with the market

demand of 14%

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FFIGUREIGURE 16 16

0

100

200

300

400

500

Pepsi Coca-Cola Thums-up

S1

Market Demand of Softdrink ( Cola )

Pepsi

Coca-Cola

Thums-up

FFIGUREIGURE 17 17

Market Demand of Softdrink ( Cola )

Pepsi 39%

Coca-Cola37%

Thums-up 24%

Pepsi

Coca-Cola

Thums-up

Sample size shows the comparison between the market demands of each of cola drink.

Pepsi is on the top, shares the demand of 39% from the market. Coca-Cola seconds with the shares of the demand of 39% from

the market beating Thumps up with the remaining 24%

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FFIGUREIGURE 18 18

Mirinda-O, 260

Fanta, 285

240

250

260

270

280

290

Mirinda-O Fanta

S1

Market Demand of Softdrink ( Orange )

FFIGUREIGURE 19 19

Market Demand of Softdrink ( Orange )

Mirinda-O48%

Fanta52%

Sample size shows the comparison between the market demands

of each of Orange drink.

Mirinda and Fanta are almost head to head with 48% and 52%

market demand. Though Fanta is having 4% more share than

Mirinda Orange.

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FFIGUREIGURE 20 20

FFIGUREIGURE 21 21

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Sample size shows the comparison between the market demands

of each of Lemon drinks available in the market

Limca in the lemon flavour with the market demand share of 31%

is beating all the giants.

Pepsi’s two products Mirinda Lemon and Mountain Dew together

with the market demand share of 55% are competing with the

Limca.

The new entrant to the market, Mountain Dew is gaining the

market share more dynamically than its competitor brands.

Sprite and 7 up are lacking behind with just the share of 14%.

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FFIGUREIGURE 22 22

FFIGUREIGURE 23 23

Market Demand of Softdrink ( Mango )

Slice, 300

Mazza, 290

Sample size shows the comparison between the market demands of each of Mango

drinks available in the market Slice and Mazza is almost head to head with 52% and

48% market demand. Though Slice is having 4% more share than Mazza.

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LIMITATION

Despite the possible efforts in conducting the research, there were some

unavoidable situations, which limited the scope of the project.

Considering the population, the sample taken for present study

seems small and hence further investigation may be required.

The sample taken for study was not of equal distribution so a

comparative study cannot be made.

Some of the retailers were non-cooperative in giving information,

which hampered the actual calculation.

Time available for research was very short so certain aspects have

been overlooked.

Retailers were hesitant to provide the complete information due to

fear of misuse of information.

Respondents may sometimes misinterpret the questions, leading

to a different answer.

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RECOMMENDATIONS

1. Company should do something to meet its demand in the market.

Because there is an acute shortage of Coca-Cola 2Lts party pack

and tin pack because of the shortage, Coca-Cola is not only loosing

the present market share but also providing way to the rivals. For

this either plant size can be expanded or some more production

equipments can be installed.

2. Since the market capacity is huge salesman needs time at every

retailer to satisfy him and tell him about the different products,

packaging, schemes etc. it’s quite difficult for him to visit every shop

on his route everyday. Therefore, there is necessity to divide his

route into two parts and increase the total number of routes.

3. Sometimes salesman for different routes keeps on changing very

frequently (in a very short period). This should be prohibited

because every sales man needs time to get adjusted to a particular

route and even to know all the shops on the route.

4. Salesman is working for 15 to 16 hours regularly during the peak

season at very low reimbursement, which may sometimes kill his

interest. Therefore there is a need of fixing up his working hours.

Delivery van should be ready when he comes into the depot in the

morning. There should be different labour for shipping or de-

shipping the delivery vans.

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5. Company professions must not make the false promises about the

merchandising assets with the retailers. These retailers must get the

proper information and guidance about the company policies on the

merchandising assets. So that there must be no frustration

generated.

6. Though the GSB’s and DPS Boards are being used by the retailers

satisfyingly but still there is need of the guidance for the retailers.

7. Schemes should be transparent and made clear to the retailers.

8. As maximum number of retailers are selling around 3 to 5 crates

daily. Our schemes should be revolving around this percentage

only. And while formatting the different schemes this should be kept

in mind.

9. For this salesman can be provided with some kind of guidance/

training, so that they can clear the queries of the customers about

the different schemes/ proposals

10. Retailer benefit schemes, which the company launches time by

time during the whole year, must be made clear to all the retailers.

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11. Customers can be informed about the schemes through the

broachers. Broachers can be distributed to all the retailers for the

schemes that are being launched once in a year. And for the daily

schemes which get change on daily bases and which depends on

the stock availability providing details about the day's schemes/ after

a paper/ pamphlet on different products can be sticked to the

delivery van signed by the ASM or anybody authorized. So that

every retailer if needed/ required can verify himself about the daily

schemes.

12. Company professionals should visit the field more regularly and

they must try to visit every retailer at least once in a month.

13. A proper trust and relationship building process is required with

the retailers, which need to be worked on.

14. Above figures shows the market demand comparison between the

different products of all the flavors available in the market. Which

show that we can gain market share through Coca-Cola’s Limca and

Sprite. So we should concentrate more in completing the market

demand of these products.

15. Above figures shows the market demand comparison between the

different packs available in the market. Which show that we can gain

market share through concentrating more on 2Lt. and 200ml.

pickings. So we should concentrate more in completing the market

demand of these packing

16. Other products and packing like Sprite and 300 ml. Whose

demand is going down require proper attention and strategy.

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CONCLUSIONCONCLUSION

After conducting the research, Researcher found that there are two

categories of retailers. The first one is of those retailers, which just want

to increase their assets, for them the sale doesn’t matter according to

them they can only increase the sale if the company will invest in them

or in their shops. These types of retailers will only work for the company,

which invest in them hugely. And if at any moment they found company

has lost or lowered their interest in them they will again shift to other

major player. Other kinds of retailers are those who are more bothered

about working hard and build their reputation in the market. These types

of retailers are using the merchandising assets to their optimum level.

And sometimes if they are unable to do so it’s because of the irregularity

of the salesman (when the salesman on the route gets changed) or

because of the shortage of the different products/packing.

There is a requirement of the company professionals to visit these

retailers continuously. So, that they can understand the market

and suggest changes accordingly. Despite of this, salesman and

other company professionals who visit these retailers must not do

the false promises. Due to this retailers loose their confidence in

the company.

There is also the need of the transparent schemes and marketing

mix that the retailers can understand more properly.

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QUESTIONNAIRE

Name of the SHOP ______________ Tel No.__________________

ADDRESS _____________________________________________

1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?

A. PEPSI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

2 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE DPS BOARD DO YOU HAVE?

A. PEPSI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

3 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR DO YOU HAVE?

A. PEPSI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

4 HOW MANY BOTTLES OF COCA-COLA DO YOU HAVE IN YOUR FRIDGE?

COCA-COLA __________________ TOTAL ________________

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5 WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX TO ITS FULL STRENGTH? A.SHORTAGE [ ] B. EMPTY PROBLEM [ ]

C . IRREGULARITY OF THE SALESMAN [ ] D. OTHER [ ]

6 APPROXIMATELY HOW MANY CRATES DO YOU SALE?A. 0.5-2 [ ] B. 3-5 [ ] C. 6-10 [ ] D. MORE THAN

10 [ ]

7 HOW DO YOU GET THE DISPLAY MATERIAL FROM THE COMPANY?A. SCHEMES [ ] B GIFT [ ] C SHARING / DRAFT [ ] D OTHER

[ ]

8 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?( ) 2 LT. ( ) 1 LT ( ) 500 ML ( ) 300 ML ( ) 200 ML

9 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?A. ( ) PEPSI ( ) COCA-COLA ( ) THUMS-UP

B. ( ) MIRINDA-O ( ) FANTA

C. ( ) MIRINDA –L ( ) LIMCA ( ) MOUNTAIN-DEW ( ) SPRITE

( ) 7-UP

D. ( ) SLICE ( ) MAAZA

Thanks If you Have Any Suggestion…………………………( )

Signature

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Retalier List

Name Of Out let Area

Shiva sweets Najbabad

Saleem Sweets Ghaziabad

Roadways canteen Najbabad

Ravi P.C.O Najbabad

Gupta General Store Ghaziabad

Nidhi General Store Ghaziabad

Sharma tea Stall Najbabad

Kumar Sweet Najbabad

Trimohan pan Bhandar Ghaziabad

Ghai Motel Ghaziabad

Vikas general Store Ghaziabad

Shanavaaz Tea Stall Ghaziabad

Vinay General Store Ghaziabad

Gupta hotel Ghaziabad

Sonu P.C.O Ghaziabad

Mahesh Hotel Ghaziabad

Mohan Murga wala Najbabad

Gupta & SonsGhaziabad

Anand bakers GhaziabadGhaziabad

Sarfaraz pan Bhander Ghaziabad

Singh Coldrinks Ghaziabad

Mothi general Store Ghaziabad

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BIBLIOGRAPHY

Name of the books used for the reference and their authors.

1). Kotler, Philip, Marketing Management, Delhi, Pearson Education Pvt. Ltd., 2004

2). Kothari, C.R., Research Methodology, New Delhi, Wishwa Prakashan Pvt. Ltd.,

2003,pg.14-26.

Websites Referred

http://www.coca-cola.com

Search Engine - http://www.google.com

MAGAZINES

Time Education Magazine

Business Today