Coca Cola Project Report

PROJECT REPORT ON “A Comparative Study of soft drinks” POST GRADUATION DIPLOMA IN MANAGEMENT (Session: 2010-2012) Submitted By: Shiva Bhardwaj EBS ID- 0101PG009 ERA BUSINESS SCHOOL DWARKA SEC -9 NEW DELHI PREFACE Research report is an integral part of management courses. Project report experience refers to knowledge and skills acquired by a student by participation in activities performed by professional. It is distinct from an education in which theoretical knowledge is acquired.

The ability to develop solutions to practical through application of theoretical knowledge is acquired by management students in the course of their Project report. It also helps the students to develop professional competence and related skills as also to imbibe certain ethical values and norms expected of professionals. The soft drink industry has entered to booming phase and soft drink is available everywhere like water. To monopolize market powerful projects are undertaken. This project is an endeavor in that direction.

The development of soft drink market it is necessary to touch all areas and the soft drink should be available in rural areas as well as in urban sector, now the companies are focusing on rural market and the strategies for that are made and market research for the promotion is needed. The emphasis in the project is providing the study and an insight into Indian FMCG Business Scenario. The Summer Project is designed to provide participation of MBA program as on the job experience. This has given a chance to try and apply the academic knowledge and gain insight into corporate culture.

This helps in developing decision-making abilities and emphasizes on active participation by the student. We undertook our Research in Coca cola Hindustan, a leading Bottler and Marketing partner of the beverage. During the project, we had worked on the topic “A comparative study of soft drinks”. We gained valuable experience & knowledge during the survey. The Project consists of findings, data analysis & then SWOT analysis & conclusions were drawn and finally recommendations were put forward. ACKNOWLEDGEMENT

The Research report will be incomplete without acknowledge giving my sincere, gratitude to all persons who have helped me in the preparation of this research. First of all, I thank “GOD ALIMIGHTY” for the blessings showered on me throughout this project work, which has helped me in the successful completion of the training. I express our thanks to Hindustan Coca cola Beverages Pvt. Ltd. for granting me the permission to work with the esteem organization. I am also thankful to Mr. ASHUTOSH- (MIS EXECUTIVE) ADVANCE SALES&SERVICE Pvt. Ltd Coca cola Beverages Pvt.

Ltd who guided and helped us in all possible ways they could, at every stage of the report. My humble thanks are to Mr. Ajay singh (TRAINING MANAGER) for guiding me during research report. I would also like to thank all the Executives, distributors & staff of Hindustan Coca cola Beverages Pvt. Ltd who provided us all the relevant information and their kind support, on the basis of which this report has been prepared. Lastly I would like to pay our special regards to my internal guide for their encouragement and full support for completion of this report work. TABLE OF CONTENTS 1. Introduction 2. ObjectiveofStudy . Scope of the Study 4. Market of Soft Drink in India 5. Product/Services 6. Research Methodology 7. SWOT Analysis 8. Findings 9. Suggestions 10. Limitations 11. Conclusions 12. Annexure Questionnaire 13. Biblography INTRODUCTION Modern age is full of competition. Today only way of success is your continuous efforts towards the growing market needs and in satisfying them. It is the marketer job to know what the market speaks i. e. the ever changing needs of the customer through market research & adopt them fruitfully. It is must for all the companies to make policies according to the customers and the government.

Today, to succeed for any organization has to target its customer needs, to create a culture in the organization i. e. market conscious & responsive to customer needs. Soft drinks constitute one of the largest food industries in the world today. Soft drinks industry has become big business in India in recent years. The soft drink business underwent major change with the entry of PEPSI and re-entry of COCA-COLA in India in the late 80s when Parley with brands like Thums up, Limca & Gold spot was a clear leader. Coca-Cola took up the product line of parley in 1993-94; today both brands are the Indians favorite soft drinks.

Tremendous advances have taken place in the process technology in the soft drink industries in the past two decades. SOFT DRINK MARKET IN INDIA Today India is one of the most potential markets, with population of around 900 million people, the Indian soft drinks market was only of 200 cases per year. This was very low even compared to Pakistan and Philippines. Population and potential market are two major reasons for major multinational companies of entering India. They feel that a huge population coupled with low consumption can only lead to an increase in the soft drink market.

Another increase in the sale of soft drinks is the scorching heat and the climate of India, which is suitable for high sale of soft drinks. All these factors together have Today India is one of the most potential markets, with population of around 900 million people, the Indian soft drinks market was only of 200 cases per year. This was very low even compared to Pakistan and Philippines. Population and potential market are two major reasons for major multinational companies of entering India. They feel that a huge population coupled with low consumption can only lead to an increase in the soft drink market.

Another increase in the sale of soft drinks is the scorching heat and the climate of India, which is suitable for high sale of soft drinks. All these factors together have contributed to a 30% growth in the soft drinks industry. If the demand continues growing at the same rate, within two years the volume could touch 1 billion cases. All these factors are the reasons for the entry two giant of the soft drink industry of the world to enter the Indian market. These two giants? Pepsi and coca-cola, themselves share 96% of the soft drink market share. Rest is shared by Cadbury? Schweppes and other soft drink brands. But was the scene same 20 years ago? The answer is no. 1970 was the year of pure soft drinks campa cola and Parle people (Thums up and Limca). The major participants involved in the production and distribution of soft drink are concentrate and syrup producers, bottlers and retail channel. Concentrate producers manufacture basic soft drink flavors and retail channel refers to business location that tells or serves the products directly to consumers. Soft drink is not a product, which a person plans to buy before hand, but is an impulse purchase.

Lots of sale depends upon the strength of merchandizing done at the point of sale. It all begin in 1977, a change in government at the center led the exit of coca-cola which preferred to quit rather diluting its equity to 40% in compliance with the foreign exchange regulation act( FER A). The first national cola drink to pop up was double seven. In the meantime, pure drinks exits, switched over to campa cola. The beginning of 1980? s saw the birth of another cola drink, Thums up, Parle the gold spot people, launched it in 1978-79, as “refreshing cola”. By the mid-eighties Mc Dowell? launched thrill, and by the late eighties there was double cola, which entered in India market, as a new-run out fit with its plant in Nasik {Maharashtra}, in 1978 Parle, Indian soft drink? s market (share 33%) with its gold spot and Limca brands. Later Thums up also started. At the same time the threat to the Indian soft drinks was that of fruit drinks. In 1988, fruit drinks market was valued at Rs. 40 crore and grew at the rate20 %. Coca-cola entered Indian by buying up to69 % of the 1,800 crore soft drink market {i. e. 5 Parle export brands of Thums up, Limca, Gold spot, Citra & Maaza}.

Today the scene has changed making it a direct battle between two giant coca-cola and Pepsi. The picture will become clearer by looking at the India market shares in the beverage industry. One of the strongest weapons in coke armory is the flexibility it has empowered its people with. In coke every employee, may he be a manager or salesman, have an authority to take whatever steps he or she feels will make the consumers aware of the brand and increase its consumption. Thus coke believes in establishing and nurturing creditability of the salesman and making commitment to grow business in accounts.

All these factors together led to a high growth in the Indian market and constantly increasing market share. COMPANY PROFILE COCA-COLA (US) Coca cola is a world leader in beverages, with revenues of about $35 billion and over 180,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of Coca cola Beverages and Foods, which includes Coca cola Beverages North America (Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America.

Coca-cola International includes the coffee businesses of Frito-Lay International and beverage businesses of Coca-cola Beverages International. Coca Cola, the name and the product represent simple moments of pleasure for consumers in nearly 200 countries around the globe. Many of Coca-cola brand names are over 100-years-old, but the corporation is relatively young. Coca-cola was founded in 1923 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. Coca-cola Company–Coca-cola (formulated in 1898), Diet coke (1964).

Mission of the Company: Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions. Coca-Cola bottling plant opens in 1950 in New Delhi, operated by pure drinks Ltd. In 1951 Bombay plant opens, also operated by pure drinks Ltd. In 1953 and 1954 Calcutta & Kanpur bottling plant opens in 1950 in New Delhi, operated by pure drinks Ltd. In 1951 Bombay plant opens, also operated by pure drinks Ltd. In 1953 and 1954 Calcutta & Kanpur bottling plant opens cont. 973 was the time when 22 bottling plant operated in 13 States. In 1978 Coca-Cola withdraws Indian operations. In 1992 KO resumes business operation in India in joint venture with JMRPCO. After that KO acquires Parleys brands (Thums up, Limca, Maaza, Gold spot, Cintra, Rimzim. ) 1994-Plants open in Bombay, Calcutta and New Delhi. In 1996 Can, PET plant started in pune. 1998-First Greenfield plant opens in Ahmadabad. HINDUSTAN COCA-COLA BEVERAGE Pvt. Ltd In the network of the Coca-Cola system, Coca-Cola has either of the two bottling operation done for the company. 1. COBO (Company Owned & Operated Bottling Operation). . FOBO (Franchise Owned & Operated Bottling Operation). After 1993, when Coca-Cola re-enters India market, done a lot of changes in existing system of soft drink market prevailing in India, by acquiring the major brands and the bottling operations from Parle & after this company founded some of its own bottling operation in India. In year 1997, company did a major investment of $700 million in India by purchasing other bottling operations, all around India and introduces new technology in them. These bottling plants are called Company Owned and Operation Bottling Operation.

Company has full ownership and operational In year 1997, company did a major investment of $700 million in India by purchasing other bottling operations, all around India and introduces new technology in them. These bottling plants are called Company Owned and Operation Bottling Operation. Company has full ownership and operational right for these types of operations. The other type of bottling operation for the company are called Franchise Owned and Operated Bottling Operation, to these, the company has given the right to produce the product for the company and to supply with the territory assigned by the company.

Company has no ownership or operational right/ control over these. In India Company have 26 COBO and 14 FOBO operations for the production and control of the whole operation in India. These are divided in to various zones that are given in the marketing mix section of this report. Hindustan Coca-Cola Beverage Pvt. Ltd. First established plant is Hathras in India, second largest plant is Dasna, and the largest one is in Bangalore. Hathras plant has 3 RGB filling l ines. The RGB line operates at mechanical efficiency of 90%. Company doesn? have the facility for filling Maaza (RGB and Tetra Pack) a Mango flavor drink of Coca-Cola, pet bottling and water plant. Coca-Cola buys a numbers of bottlers in India. Integration of all bottling units into one Indian Company bottler, Hindustan Coca cola Beverages Private Limited (HCCBPL) comes into its existence in 1997-1999. In July 2005HC CBP L becomes a separate bottling entity (CBO) reporting in bottling investment group (BIG), Atlanta. Today, the world’s preferred soft drink; Coca-Cola is one of the world’s, best-known and most admired trademarks, recognized by more than 90 percent of the world’s population.

BUSINESS SEGMENTS The KO Group is divided into main three-business segments- Beverage, Juice & Miner Water. It has a leading market position in each of its three business segments. Their balanced portfolio produced a solid business performance. Products, which look to the future, ensure that we will be well placed in growth markets. THE PRESENT POSITION OF COKE IN INDIA Indian Beverages industry’s volume is Rs. 1200 Crores and it is dominated by two player’s viz. Coke& Pepsi only.

This high profile industry has lot of potential for growth as per capita consumption in India is 8 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal. Coke is a households name and is the lips of every one. In present time every person knows the name of coca cola since India is one of biggest market and sultry summer from March to the end of October and huge population has immensely helped in the sales of coke in India and its making it more economical. Last years, the market share of Coca Cola was not specific.

In this year company’s top Last years, the market share of Coca Cola was not specific. In this year company’s top management adopted new policy and decreased the rate of all brands of coke. By this decision top management determined the rate of 300 ml / 7 Rs and they made a new brand of 200 ml determine the rate of this brand 5 Rs. By which medium size family and lower level family can be enjoying coke. By this decision company’s marketing share has been increased. In present time coke is captured approximate 70% market share in cold Dinks line. Now coke has defeated all the soft drinks company.

According to service and according to advertising coke has appropriate position. It has now emerged as the winner and has a good image in the market. INGREDIENTS OF SOFT DRINK: Coca-Cola uses only the finest ingredients to make their beverages. Coca cola to guarantee their consumers consistent quality, each ingredient must pass through high standards, rigorous quality control tests and strict bottling procedures. Coca-cola products contain natural flavors, including extracts of the kola nut, flavor oils derived from natural sources such as citrus and other fruits.

Caramel (made from corn sugar) adds color and flavor to colas. Other ingredients add a refreshing taste: phosphoric acid in colas; citr ic acid and sodium citrate in Mazza. Coca-cola also put a freshness date on every can and bottle. Soft drinks may lose some flavor over time so freshness date tells consumers when the product is freshest and best tasting. Every can and bottle of coke products has a Nutrition Facts panel, which shows the number of every can and bottle of coke products has a Nutrition Facts panel, which shows the number of calories and other nutrients per serving.

There is essentially no fat in any coke product. The main ingredients found in Coca-Cola products include carbonated water, carbohydrates, sugar, sodium, potassium and caffeine. For a complete breakdown by ingredients by product, see coca-cola product information for Thumsup, Diet Coke, Mazza, sprite, Fanta, Limca & Kinley water. Ascorbic Acid Another name for Ascorbic Acid is Vitamin C. The Ascorbic Acid used in carbonated soft drinks functions as an antioxidant to protect the flavors, color, and taste. In some beverages, its also add it to Another name for Ascorbic Acid is Vitamin C.

The Ascorbic Acid used in carbonated soft drinks functions as an antioxidant to protect the flavors, color, and taste. In some beverages, its also add it to provide the nutritive value found in Vitamin C. Aspartame Aspartame is a sugar substitute used in diet beverages and many other food products. Aspartame is made of the same building blocks as protein, so it is considered a “nutritive sweetener,” but the very small amounts used in diet drinks contribute no calories. Blue1 Blue 1 is a FDA-approved food coloring used in a variety of products such as jellies, condiments, puddings, and beverages.

Brominated Vegetable Oil (BVO) Brominated vegetable oil has been used by the soft drink industry since 1931. It is a widely used food additive that has been extensively tested and approved by the U. S. Food & Drug Administration. Brominated vegetable oil is derived from soybean oil that has been modified in order to keep the flavoring oils well blended. Caffeine Caffeine provides a characteristic flavor to soft drinks. Caffeine is naturally found in coffee, tea and chocolate. For comparison, an 8-oz. cup of brewed coffee can have from 85-120 mg of caffeine o n average, while an 8-oz. erving of coca-cola contains about 25 mg of caffeine. An 8-oz. cup of coffee therefore contains 3-4 times as much as caffeine found in a caffeinated colon. There is no caffeine in Caffeine Free Coke, Caffeine Free Diet Coke, Kinley, Mazza, Sprite & Fanta. Caramel Caramel is a flavoring that is added to some of beverages. Citric Acid Citric Acid can be found in citrus fruits such as lemons and oranges. Citric acid is used to bring out the flavor of other ingredients and imparts a tang or tartness to beverages. Citric acid is not Vitamin C.

The same fruits that have citric acid often have Vitamin C but the technical name for Vitamin C is ascorbic acid. High Fructose Corn Syrup High Fructose Corn Syrup (HFCS) is a sugar derived from corn and provides sweetness and taste to beverages. HFCS has the same sweetness as table sugar (sucrose) and has almost the identical composition of fructose and glucose. Natural Flavoring Natural Flavorings are flavoring ingredients that are the essences or extracts derived from natural plant sources. Natural Flavorings are what gives a product its distinctive flavor and taste.

Coca-cola products are the only products with these distinct flavor blends, which are considered part of our secret formula. The term natural flavor is defined by the food and drug administration and all of our natural flavorings meet this definition. Phosphoric Acid A small amount of phosphoric acid is added to soft drinks. However, it is greatly diluted and is fully approved by the U. S. Food and Drug Administration for use in soft drinks. Phosphoric acid provides tartness, essential to a well-rounded flavor. Phosphorus, like calcium, is an essential mineral in bone.

It is widely distributed in the food supply, including fish, milk, meat, eggs and cereal grains. Potassium Potassium in Coca-Cola products may come from water or as part of certain ingredients. For example, potassium may be combined with benzoic acid, which helps prevent spoilage and flavor changes. Potassium is an electrolyte that helps meet the mineral needs of active people. Quillaia Quillaia Extract is a purified extract derived from the bark of the Quillaia tree. It is carefully selected based on its characteristics. It is cooked, filtered and pasteurized.

It is FDA-approved, non- hazardous. Quillaia is found in some of our frozen drinks. Red 40 Red 40 is a FDA-approved food coloring used in beverages. Sodium All of our products are “low sodium” and contains less than 110 mg per eight-fluid-ounce serving. A number of beverages have less than 35-mg sodium per serving, so they are considered “very low sodium” products. Sugar Regular soft drinks and sports drinks are sweetened with sugar. There are many types of sugar available today. In soft drinks and sports drinks, the sugar is primarily high fructose corn syrup, which comes from corn.

Total Carbohydrates Total carbohydrates include the sugars and any carbohydrate-like parts of ingredients, such as organic acids. Although diet drinks may have no sugar, they may contain more than half a gram of carbohydrate. Yellow5 Yellow 5 is a FDA-approved food coloring. Used since 1916, it is found in a variety of products such as skim milk, yogurt and macaroni and cheese. COMPETITIVE ARENA The soft drink market all over the world has been witnessing a neck to neck battle between the two major players, Coca-Cola and Pepsi since the very beginning.

The thirst quenchers are trying hard to have the major chunk of the pie of carbonated soft drink market. Both the players are spending their energies in building capacity, infrastructure, promotional activities etc. Coca-Cola being 11 years older than Pepsi has dominated the scene in most of the soft drink markets in the world and enjoying leadership in terms of market share. But the Coca-Cola people are finding it hard to keep away Pepsi, which has been narrowing the gaps regularly The two are posing threats to each other in every nook and corner of the world.

While Coca-Cola has been earning most of its bread and butter through beverage sales, Pepsi has a multi products portfolio with some portion from the same business. The two warriors are face to face once again here in India with different strategies and tactics to attack the rival. Coca-cola is focusing upon the joint ventures with the existing bottlers {FOBO } franchise owned bottling operations to enhance its control on manufacturing and marketing of its products range and attain the quality standards of its class. Countering it Pepsi has taken the battle in its own hands by floating as investment of $ 95 billion to set Pepsi Company.

India holdings, as subsidiary for { CO BO } company owned bottling operations. Both the companies are following different path to reach the same destiny i. e. to fetch the bigger portion of aerated soft drink market. Both consider India a huge potential market, as per capita consumption here is a mere 3 serving annually against the world average of 80. Therefore, they are putting in their best efforts to woo the Indian consumer who has to work for 1. 5 hours to buy a bottle of soft drink. In comparison to the international norms minutes, a major hurdle to cross over for both the athletes for getting no. position comparison to the inter. Coca-cola is well set with its 53 bottling sites throughout the country giving it an edge over competition by processing a well-built bottling and distribution set- up. On the other hand, Pepsi, with two more years in India, has been able to set an image of a winner in India and has been able to get the pulse of the India soft drink market. The soft drink giants are leaving on stone unturned and her for the long terms. Coca-cola has been penetrating the market through its wide product range with a determination to change consumption pattern of soft drink in India.

Firstly, they upgraded the whole industry by introduction 300 ml bottles, which in turn had given the industry a booming growth of 20% as compared to the earlier 5%. They want to develop a coca culture here and are working on a strategy to offer soft 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 Amir Khan, Akshay Kumar 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 have been enjoying a lead over its rival there. Coca-cola on the other hand, has been working on the saying slow and steady wins the 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? nd 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. COKE’S MARKETING STRATEGIES Coke decides on its marketing strategies at a national level and lends them a local flavor,for example, while festival mood plays a strong role in marketing, it is activated for Durga Puja in Calcutta;Dandiya in Gujarat, etc Coke has its focus on the youth market in India. As a first step toward catching the attention of the youth, coke signed on crickethe r o? s Yuvraj Singh.

It slowly started talking about youth passions like cricket, films, festivals and food. Soon the advertisements started giving the message, “Eat Cricket, Sleep Cricket, Drink only Coca-Cola” And now it has started modifying film hits to frame catch lines that appeal to the youth. This particular strategy has worked well for coke. Coke is focused on distribution to ensure that its products are within customer’s reach. Andit saves its focus has begun to pay it dividends. As per mid-1998 figures coke is selling as many bottles in the hinterland of Punjab as it does the four metros THE FUTURE OF COCA COLA

While doing business overseas offers coke wonderful growth opportunities it also has its own disadvantages. The economic slowdown in various overseas markets and the strong dollar had their impact on coca-cola revenues and bottom line in 1998. But the company is optimistic about the future. M Douglas Investor, the Chief Executive Officer of the Coca-Cola Company says, “This past year 2006 has been a challenging period for the Coca-Cola Company as economic environment became more uncertain in the later part of 2006, and 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 future is assured Goizueta had stated and proven to the world that focus on shareholder wealth does more good to the company than focus on revenues and it is As long as maximization of share holder wealth remain Coke? s focus for its future is assured Goizueta had stated and proven to the world that focus on shareholder wealth does more good to the company than focus on revenues and it is not that coke does not enjoy volumes for it is 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 COCA COLA GLOBALIZATION STRATEGIES The coca-cola company is global player and approximately 70 % of its volume and 80 % of its profit come from outside the United States of America. Although it was perceived as a standardized brand across the world, coca-cola had been quietly fine turning its international marketing strategies to suit the needs of individual national markets.

Only the brand coca-cola, Sprite and Fanta were marketed globally. In Latin America and Europe, where heavy consumer? s preferred existed for lemon lime and orange soda. Coke had developed a wide range of formulations and flavors to cater the needs of different countries. In ei Salvador and Venezuela, a version of Fanta called Fanta kolita a cream soda type of drink became extremely popular. Similarly, in Indonesia coke had been selling pineapple and banana Limca, Maaza and Thums up in 1993. A 100 YEARS OF THE CURVY 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 1 billion soft drinks are sold each day in more than 200 countries around the world. Candler had purchase what would become the cola company for $2,300 eight years earlier from john Pemberton, an Atlanta pharmacist who astonished the world.

Candler though the bottling venture would never succeed, but he signed the contract with white head and Thomas any way, “and the rest is history”, bob Lovell, vice president of marketing for coca-cola bottling company. United inc. , said in telephone interview from Chattanooga. 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 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 Goizueta? 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 form 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. PROMOTION: THE COCA-COLA WAY Goal – “To Have Coke Available within an Arm’s reached 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 increasing 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? 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 3 A’s :- Availability Some of the ways in which the Coca-Cola Company hopes to increase availability of its product include improved or innovative packaging, dispensing systems, distributions system, and marketing. Affordability The ways to address affordability include pricing decisions, as well as resource management to make its product available at a price affordable to the consumer.

Continually processes more efficient and therefore more cost-effective. Acceptability Making coca-cola brand products the beverage choice for any occasions depends on a variety of strategies to reach the target audience. The common strategies adapted to effect acceptability were though sponsorships, promotion youth market activities, community programs, and other activates. DISTRIBUTION IN THE COCA-COLA SYSTEM Getting Products to Market One of the values of the coca-cola system is presence that coca-cola should exist everywhere.

To fulfill this goal, coca-cola not only produces products, but also has an effective system to distribute them all over India Distribution Distribution Sales + Delivery + Merchandising + Local Account Management. Distribution of Coke’s products includes the activities of sales, delivery merchandizing and local accounts management. These are two major types of distribution systems:- 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). With direct distribution there are two types of sales:- Advanced sales and conventional sales. In conventional sales, all the distribution activities (Sales, Delivery, Merchandizing and Local Accounts Management) are performed by the same persons. In advanced sales, sales and delivery are performed by different people within the coca-cola system. Difference between customer and consumer.

A consumer is someone 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.

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 OBJECTIVE OF STUDY The purpose of research is to discover answers to questions through the application of the scientific procedures. The main aim is to find out the truth which is hidden and which is not been discovered yet. our main objective is to find out the solution of those problems which are the main barriers in the promotion of Coca-cola in rural market. To find out the problems faced by the channels of distribution.

To find out the quality of the products in the market. To find out the response time to resolve quality of the products in the market. To find out the clarity of communication & execution support from the company on trade/consumer related promos. To find out the levels of satisfaction among the retailers towards SGA. To find out availability of Coke & Pepsi in the outlets. To find out the support from the company for enhancing brand image through POP & POS materials. in order to find out market share of coca cola with their competitors & also find out the issue related with the retailers w. . t the KO company. A questionnaire is to be prepared in order to get the frequency of issues related with the retailers For this I have to doretailer survey (in aliganj indiranagar gomti naga lucknow barabanki kanpur) GUIDELINES FOR CONSTRUCTING QUESTIONNAIRE / SCHEDULE The researcher must pay attention to the following points in constructing an appropriate and effective questionnaire or a schedule: (1)The researcher must keep in view the problem he is to study for it provides the starting point for developing the Questionnaire/Schedule.

He must be clear about the various aspects of his research problem to be dealt with in the course of his research project. (2)Appropriate from of questions depends on the nature of information sought, the sampled respondents and the kind of analysis intended. The researcher must decide whether to use closed or open-ended questions. Questions should be simple and must be constructed with a view to their forming a logical part of a well thought out tabulation plan. The units of enumeration should also be defined precisely so tha t they can ensure accurate and full information. 3)Rough draft of the Questionnaire / Schedule is prepared, giving due thought to the appropriate sequence of putting questions. Questionnaire or schedules pervasively drafted (if available) may as well be looked into at this stage. (4)Researcher must invariably re-examine, and in case of need may revise the rough draft for a better one. Technical defects must be minutely scrutinized and removed. (5)Pilot study should be undertaken for pre-testing the questionnaire. The questionnaire may be edited in the light of the results of the pilot study. 6)Questionnaire must contain simple but straight forward directions for the respondents so that they may not feel any difficulty in answering the questions. RESARCH METHODOLOGY Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on specific topic. In fact research is an art of scientific topic. Some people consider research as a movement, a movement from the known to unknown. Research is an academic activity and as such the term should be used in a technical sense. esearch comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data making deduction and reaching conclusion; and at last care fully testing the conclusion to determine whether they fit the formulating hypothesis . social science define the research as the manipulation of things, concepts or symbol s for purpose of generalization to extend ,correct or verify the knowledge aids in construction of theory or in the practice of an art. Research is thus an original contribution to existing stock of knowledge making for its advancement.

The systematic approach concerning generalization and the formulation of the theory is also research. DEVELOPING RESARCH PLAN After deciding the objective of marketing research the next step is deciding research plan for gathering effective information related to this research project. The research consists of following steps, which are discussed subsequently. RESEARCH DESIGN Descriptive Research: In my market survey descriptive research process was carried out to describe the market characteristics, co Data Source: During project study I use both primary as well as secondary data source.

For primary data collection I visited various retailers in Noida & for secondary data I went through Books, Journals & Internet. The information collected is relevant, correct & unbiased. Research Design: I followed survey technique for collecting the data in market survey research approach. Here, I carried out information from retailers have carefully selected the instrument & methods of surveying like I have chosen personal contact methods because of higher response rate & meaningful responses this helped me to get the general feedback in coke, etc.

Research Instrument:The research instrument used was RSS form. In which market information detail of each outlet should be filled in RSS form. For this I have visited selected outlet of lucknow/Kanpur/barabanki & check all the brands & packs of Coke & Pepsi which are available or not or which one is available in comparison with Pepsi & filled it in RSS forms. In my research process I have used closed ended & open-ended questionnaire where respondents could answer in their own manner.

Through this I was able to extract information from the respondents about Coke’s products detail of each outlet should be filled in RSS form. For this I have visited selected outlet of Lucknow/Kanpur/barabanki & check all the brands & packs of Coke & Pepsi which are available or not or which one is available in comparison with Pepsi & filled it in RSS forms. In my research process I have used closed ended & open-ended questionnaire where respondents could answer in their own manner.

Through this I was able to extract information from the respondents about Coke’s products & the competitors. I marked its response as1 or2 which implies as Not satisfied or satisfied. If it satisfies me than its fine but if it? s not satisfying me than find out the issue due to which it comes into act. Sampling Plan: In designing the sampling plan following points were considered: ? Sampling Unit: It includes who is to be a surveyed retailer of lucknow Kanpur.. ? Sampling Size: I have surveyed about selected outlet of the area specified to me so size would reach up to 100 retailers.

Contact Method: In my research process, I have collected information through personal interview process with the help of RSS Form. Form given by the company because it is the most reliable & accurate method for collecting primary data. Through this, the analysis of body language & facial expressions can be made. Methods of data interpretation: In this market study I have used pie chart for data analysis & interpretation because pie chart is the easiest & comprehensive medium for presentation of data ANALYSIS

MARKET SHARE OF COCA COLA VS PEPSI IN THE MARKET In present situation of coca cola is very good in the market. The company has good market share approx. 67 % and remains 33 % market share covered by his close competitor Pepsi in this area. Last years situation was not that. Last years market share of coca cola and Pepsi was app. same in the market but in this year company adopted new strategy and provided good service and provide more and more customer satisfaction company top management have taken a good decision in this year.

ANALYSIS MARKET SHARE OF COCA COLA VS PEPSI IN THE MARKET In present situation of coca cola is very good in the market. The company has good market share approx. 67 % and remains 33 % market share covered by his close competitor Pepsi in this area. Last years situation was not that. Last years market share of coca cola and Pepsi was app. same in the market but in this year company adopted new strategy and provided good service and provide more and more customer satisfaction company top management have taken a good decision in this year. Decision was that the flavor? entire rate should be decreased by which lower level people can be enjoying coke and the company provided a new flavor of 200 ml in the birth rupees of 5. This brand have got good position in middle level and lower level family so by the virtue of good strategy company have got good market share approx. 67 % right now coke position is much more stronger than Pepsi. Channel of Distribution Company Manufacturing goods Distributors Dealer Company Vehicle Retailer Retailer

Consumer Consumer Product Variation in the Market A. Coke B. Pepsi Coca cola Thumsup Orange(Fanta) Orange (Miranda Fanta orange Fanta green apple Fanta water melon Clearlemon Clearlemon (Sprite) (7up)

Cloudy lemon CloudyLemon (Limca) (LemonMiranda) Fruit(Maaza) FRUIT(Slice) Maaza orange Maaza lemon Maaza pineapple Soda (Kinley) Soda(LeharEvervess) Mineral water kinley Mineral water aquafina COMPETITIVE MARKET SHARE BETWEEN COCA COLA / PEPSI

Cola Orange Pepsi = 45% Mirinda Pepsi=75% Coke = 35% Fanta Coke=25% Thums up = 20% Cloudy lemon Clear Lemon Limca = 80% Sprite = 75% Lemon Mirinda = 20% 7UP = 25% ANALYSIS OF RSS FORM 1. Timely Supply of Finished Goods 2. Quality of Product We Supply ELEMENTS OF THE TRADE JO DIKHTA HAI WHO BIKTA HAI:-This is a company slogan, it is to increase the visibility of the product, the company stresses more on increasing the number of outlets than on the volumes of sales.

That is the reason of the company providing visibility courses to the shopkeepers. A BOTTLE THAT IS CHILLED IS SOLD:-In the industry it is considered that a bottle is chilled or putting in cooling compartment is sold. That is the reason the policy providing triage? s come up because according to the contract the shopkeeper has to keep only & only Coca-cola’s products in the visicooler. A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI:- The competition is so strong between the two companies i. e. fighting is on for each bottle that is to be sold in the market.

Competitive bidding goes on for each & every prestigious outlet in their region. Monopolizing entries & fast foods joints is their first priority. EMPTY kA HI KHEL HAI: – [Empty plays an important role]:-As discussed earlier the distribution points keeps on putting up distribution schemes for retailers i. e. like two bottles of solution free with the purchase of every one carat of solution. Now these schemes have timed well keeping minding the environmental conditions & schemes provided by the other company.

These schemes are of twenty-four hours duration. If a scheme is launched & there is no empty in the market for refill, the whole effort goes in vain that is the reason why we said empty ka hi khel hai. DISTRIBUTION STRATEGIES A Company can choose any of the following distribution types: – Exclusive Distribution Selective Distribution Intensive Distribution “Coca-Cola” Has Adopted The Intensive Distribution Strategy. INTENSIVE DISTRIBUTION: A Strategy of intensive distribution is characterized by placing the goods or services in as many outlets as possible.

When the consumer requires a great deal of location convenience, it is important to offer greater intensity of Distribution. This strategy is generally used for convenience items such as Tobacco, gasoline, and soap, snack foods & bublegum. Manufactures are constantly tempted to move from exclusive or selective distribution to more intensive distribution to increase their coverage and sales and you could find Coke in nursing homes, confectionery shops, departmental stores; you name it & Coke is available there. DISTRIBUTION CHANNEL REDIFINED

Coke has redefined distribution to strengthen their competitive advantage in the emerging consumer and market scenario. Their earlier focus was to drive wide availability and enable easy access to their brands for consumers. Now they seek to go well beyond this distribution paradigm. Their new approach is more holistic touching consumers in multiple ways at the point of purchase and more importantly, creating opportunities for customers to receive brand message and experience our brands. They are proactively addressing these emerging trends by approaching distribution and channels in a much broader way.

They are shifting emphasis from mere reach or availability expansion to touching consumers with a 3- way convergence- of product availability, brand communication and higher level of brand experience. They are thus going beyond delivering products and creating greater engagement and interaction around the purchasing experience. Coke’s reinvention of distribution is built on an understanding of emerging consumer trends, the retail environment and the growth drivers of our brands. Coke? s distribution system is a key external resource. Normally it has taken years to build and cannot be easily changed.

It ranks in importance with key internal resources such as manufacturing, research, engineering and field sales personals. It represents significant corporate commitment to set policies and practices that constitute the basic fabric on which is woven an extensive set of long run relationship. Global Strategies Adopted By Which Coca-Cola Becomes No. 1 Drink Today Coke policy of listening closely to its salesman. Coke reacts immediately to suggestions. Coke is providing financial support to the week bottles in the form of interest free loans to upgrade their operation.

Coke selling marketing effort has become cola centric. Apart from the capitalcost of the plant and equipment, the bottler has to invest in bottles,carat, trucks and the cooling structure (Visi cooler, icebox) at the retail point. To plan the proper utilization of manpower. To identify the activities where we can save time. Emphasis should be given on quality value and satisfaction. Customer retention is essential. More emphasis on direct and on line marketing Analysis of Data As we go along in the market there was mix reaction in terms of market share of Coke.

In some area the Pepsi was doing better than its competitors and in some other area it was other way around there was some brands of Coke which were exceptionally doing well like Thums up which was far ahead of its competitor namely Dew which was brand of Pepsi and in some outlets people were only having Thumsup which give other brands run for their money. As in the case of other brands of Coke like Mazza which is a Non carbonated drink was good in demand practically in all areas. There are some analyses made during the process: ?Soft drink business? behavior is not governed by brand loyalty so the availability of the right brand, at the right place, at the right time is the key for winning consumer in soft drink business. which sell only Coke brands and 85%mixed in the soft drinks market in Noida/Ghaziabad and some of its brands like Sprite and Limca were performing above standards. ?The present distribution system of Coke is the best in the entire FMCG industry in Noida/Ghaziabad. The enhancement in the distribution network would definitely increase the market share of Coke. The retailers played a very critical role in the increment in the sal es volume of the product and they had to be kept satisfied in order to increase the market share by offering better schemes, discounts, display materials such as VISI? s, racks, counter, signage, wall paintings and better amount for purchase of shelf space for display. ? The existence of sub-dealers and super stockiest are also the major area of problem, as they do not movethe schemes and other display materials and incentives information to the retailers, which is one of the reasons for the dissatisfaction of retailers.

The cut throat competition between COKE and PEPSI had lead to the never ending cola war and pricewar which has brought down the profit margins which is one of the major grievances apart from the common complains pertaining to schemes, incentives and display materials. Another critical issue was the presence of duplicate products of Coke in the market. The details of these outlets have been surrendered to the company for action against these outlets. SWOT ANALYSIS STRENGTH Beverage is a well-established industry, so it has a good reputation in the market.

Advertising of soft drinks is much more aggressive in market. Backed by huge promotion at national & international level. Lot of SGA? s provided in the market. Coke is attracting new generation segment due to availability of fountains especially in Noida; there is no fountain machine of Pepsi available whereas Coke has many. WEAKNESS Non-fulfillment of commitments on time, made to shopkeepers/retailers. Unavailability of various demanded flavors like Thums up & Mazza during peak season. Not proper control over distribution network. Decrease in consumption due to cold. OPPURTUNITY

May tie up or liaison with major showrooms, computer centers & restaurant. Huge publicity of Lemon Limca has created a lot of demand. Company has brand equity in the eyes of customers, so its new products can easily penetrates in the market. Untapped market. THREAT Threat of competitors new brand entry in the market in near future. Restrictions made by Govt. agencies that soft drinks are harmful & non-nutritive. Natural juice are now available whose price are less or same as soft drinks FINDINGS After visiting nearly 100 outlets I have found there are there are some common problems of retailers, which are: 1.

The problem is of non-availability of some tasty flavors in market during peak season. 2. Every retailer wants that vehicle should come in the morning so that they will keep the bottles in the fridge as soon as possible. 3. One of the major problems is that most of the chilling equipment is not in good working conditions. Retailers have complained many times but no response is being taken. 4. Majority of retailers is asking about Boards, Openers & Counters. 5. Delay in replacement of burst bottles. 6. Sampling due. 7. Some shopkeepers do not get scheme on time. 8.

Some shopkeepers require signage. 9. It was found that at some outlets, Coke? s SGA is filled with the competitor product. 10. All the retailers appraised the regular supply of the company? s products. 11. Also at some places Coke? s signage is still hanging in spite of no transactions with those SUGGESTIONS Coca Cola, the choice of Generation next is providing the first choice of young generation. A young generation wants something strong in cold drinks & thus prefers Thums up. Company should appoint competent & honest salesman so that they could provide schemes to the entire retailer? & cover their full route. It is often seen that some salesman do not intimate schemes to the retailer & few of the retailers complained about it. So there should be frequent visits of Customer Executives to their respective areas to keep the shopkeepers benefited with various schemes. Delay in starting of supply vans from respective depot should be checked & a proper time register should be maintained. Most of the retailers are complaining about non-fulfillment of commitments regarding they are satisfied. Most of the etailers are complaining about delay & no replacement of burst bottles. Marketing Management should sort some solutions to this major problem of replacing burst bottles. Half filled bottles should also be checked at the time of issue of goods from the distributor? s godown to the respective routes. Company should try to give some credit facility to the distributors so that they get motivated. Credit facility for retailers should be provided. Proper feedback system should be developed by ensuring regular visits & check randomly at the various outlets.

LIMITATIONS Findings are based on the views expressed by the retailers. So it may suffer from biased prejudices. Weather conditions were not favorable. Some of the respondents were not co-operative & many seem to be having no Interest. The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out .Time limitations. Area was specified. It is extremely difficult to persuade retailer to respond to questionnaire. The retailer knows us as people from Coke there by the responses could have been biased CONCLUSION 1.

After visiting nearly 100 outlets I found that Coke & its Brands is doing a good job in Lko/kanpur It is clrear that Coke (67%) is leading Pepsi (33%) in the soft drink market in UP region. If we compare it with Signage or display material than Pepsi has an edge over coke. 2. At this time it is solely depends on the retailer which brand he offers to the consumer. Although the company has been unable to satisfy the retailers. The company must take immediate steps in order to resolve its disputes with these retailers. 3. During this study I found that there is very less issue related with the quality of the product.

Most of the issue is arises with the SGA It was also found that the schemes that are brought up in the market by Coke & Pepsi after every couple of day is not making any net effect on the sale of Cola, whereas one is cannibalizing others market only. 5. It was also seen that Coke brand is better sold than Pepsi. It is Thumsup, which is making the major difference in the market. 6. The sale in age wise section, it was found that 200ml is sold in all the age groups with same frequency but 300ml is sold mostly in 16 to 45yr. of age group where as CAN is sold in younger generation only.

QUESTIONAIRE RED SCORING SHEET RSS FORM Surveyors Name: __________ Outlet Name: ______________ Address: _________________ Channel: ________________ Category (D/G/S): ________________ Class (H/M/L): ___________________________ | | | | | | | | | | KANPUR S. NO. | | POINTS| POINTS| POINTS| VISICOOLER1. Is a coca-cola cooler present? Visicooler/chest cooler. 2. Is the cooler as per standard? 3. Is the vesi cooler in the prime position? 4. Is the visicooler in a working condition? Not working/unclean5. Is the visicooler light working? 6. Is the cooler 100% pure? . Is the cooler brand-order compliant? TOTALAVAILABILITY9. 300 ML (COLA+3)10. Mobile PET (COLA+3)11. Maaza RGB12. CAN (COLA+1)13. MAAZA PET 600ML & 1. 2 LTR. 14. 1. 5 LTR. PET (COLA+3)TOTALACTIVATIONE & D15. COMBO BRANDS ( AT LEAST 3)16. TENT CARD(MIN 5 OR PRESENT ONALL TABLES17. FLANGE ROAD STANDEE OR GLOWSIGN BOARDGROCERY18. DISPLAY RACK WITH HEADER19. IS THE RACK PURE AND CHARGED20. SHELF DISPLAYCONVENIENCE21. TABLE TOP DISPLAY22. DPS BOARD, GLOW SIGN ORFLANGE| REMARKS| DELIVERY| CONVENIENCE| GROCERY| GRAND TOTAL SIGNATURE OF SURVEYOR

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