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COKE AND PEPSI LEARN TO COMPETE IN INDIA

COKE AND PEPSI LEARN TO COMPETE IN INDIA

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    Project final manendra shukla. Project final manendra shukla. Document Transcript

    • PROJECT REPORT ON COKE AND PEPSI LEARN TO COMPETE IN INDIA WITH REFERENCE TO (RANCHI) SUBMITTED ON THE PARTIAL COMPLETION OFPOST GRADUATE DIPLOMA IN MANAGEMENT(PGDM) SUBMITTED BY: - MANENDRA SHUKLA Course – P.G.D.M Session – 2010-2012
    • PREFACEAny training programme sharpens those instincts, which serves as a fulfillment of theoreticalgrounding. As the present day business world is a highly complex one where HumanIngenuity and Acumen is sharpened by highly specialized knowledge in various branchespertaining the running and conducting. The research project in our basket was- Analysis andachievements of pre sale concept and the direct distribution system launched by the companyin Ranchi territory; to study the present the distribution channel of Coca Cola Products,. Thedifferent organized markets that I have chosen for our research was main markets of Ranchi.The sample unit taken was organized retail stores of capital city of Jharkhand i.e Ranchi.Research is a feedback that any organization sought for the purpose of effective policy anddecision making. It is the systematic problem analysis, model building & fact finding for thepurpose of important decision-making & control in the making of goods and services.Summer Project is a part of our curriculum so that we get exposed to the practical side ourtheoretical know-how. This is basically designed to the real life situation. In this trainingprogrammed, the students use their academic knowledge practically which polishes thedecision making abilities of MBA graduates. For developing healthy managerial andadministrative skills of potential managers it is necessary that theoretical knowledge must besupplemented with exposure to real life business environment. It is a practical training thatthe measuring itself is realized.Conventional academic medium cannot sell anything practically down to real and practicalmarket knowledge is required to make a hard core corporate. This research work gave me theopportunity to apply conceptual skills in practice and to learn the art of conducting study andpresenting its findings in a systematic and scientific way.
    • ACKNOWLEDGEMENTI would like to express my sincere gratitude to Mr. J.K. Choudhary for givingme an opportunity to work on a live project. I am very grateful to Mr. AnjaniKumar for giving me proper guidance in completing the project from beginning.I am also very grateful to Sales team leader Mr. Apoorva Dubey and Mr. VishalRanjan who had given their guidance which helped me to complete my projectsuccessfully. At last I want to thank all the staffs of human resource, stores,shipping and marketing for their co-ordination without whom it would be verydifficult for me in achieving my target and making the project successful.
    • CONTENTS HEADINGS PAGE NO.1. Company Profile - 52. SWOT Analysis - 233. About Competitor - 254. Rationale of the study - 265. Distribution - 276. Market Map of Ranchi - 317. Research Methodology - 328. Observation - 369. Findings and Analysis - 4010. Conclusion - 5411. Suggestions & Recommendations- 5512. Limitations - 5613. Annexure - 57
    • COMPANY PROFILESHISTORY OF COCA-COLAJOHN PEMBERTONThe world has changed in many ways since pharmacist; John Stith Pemberton first introducedthe refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the product mean somany things to hundreds of Millions of consumers around the globe. Coca-Cola products areserved more than 705 million times every day, quenching the thirsts of consumers in morethan 195 countries in every climate. Thats a long way to come after such a modest beginning.May1886 - Pemberton concocted caramel-colored syrup in a three-legged brass kettle in hisbackyard. He first "distributed" the new product by carrying Coca-Cola in a jug down thestreet to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at thesoda fountain. Whether by design or accident,
    • Carbonated water was teamed with the new syrup, producing a drink that wasProclaimed "Delicious and Refreshing." Dr. Pembertons partner and bookkeeper, Frank M.Robinson, suggested the name and penned, in the unique flowing script that is famousworldwide today.1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive colorassociated with the No. 1 soft drink brand ever since.1891 - Atlanta entrepreneur Mr. Candler had acquired complete ownership of the Coca-Colabusiness for $2,300. Pemberton was forced to sell because he was in a state of poor healthand was in debt. Within four years, Candlers merchandising flair helped expand consumptionof Coca-Cola to every state and territory.1917 - 3 Million Cokes sold per day. "COCA-COLA" is the world’s most recognizedtrademark.1919 - The Coca-Cola Company was sold a group of investors for $25 million.1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff for 25million dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president forsix decades. Woodruffs leadership took the business to unrivaled heights of commercialsuccess, making Coca-Cola an institution the world over.During the Woodruff era, Mr. Woodruff made a promise to the armed forces of the UnitedStates to supply Coca-Cola to every serviceperson. He said that costs and location did notmatter; he supplied 5 billion bottles to the service.1925 - 6 Million Cokes sold per day.1927 - The first Coca-Cola radio advertisement.1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time.1943 On June 29, an urgent cablegram arrived from General Dwight Eisenhowers AlliedHeadquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve Americanservicemen overseas. Eventually, 64 plants were set up during WWII.1950 - Advertising on the television began. Currently Coca-Cola is advertised on over fivehundred TV channels around the world.1961 - Sprite was introduced.1971 - The song "Id like to Buy the World a Coke" was released.1978 - The two liter bottle was introduced, and during that same year the company alsointroduced plastic bottles1982 - Diet Coke was introduced in July.
    • 1985 - The Coca-Cola Company made what has been known as one of the biggest marketingblunder. They stumbled into a new formula in efforts to produce diet Coke. They put forth 4million dollars of research to come up with the new formula.The new formula was a sweeter variation with less tang, it was also slightly smoother.The factor that influenced the change was that Cokes market share fell 2.5 percent in fouryears. Each percentage point lost or gain meant 200 million dollars. This was the first flavorchange since the existence of the Coca-Cola company. The change was announced April 23,1985 at the Vivian Beaumont Theater at the Lincoln Center. Some two hundred TV andnewspaper reporters attended this very glitzy announcement. The change to the worlds bestselling soft drink was heard by 81 percent of the United States population within twenty-fourhours of the announcement. Within a week of the change, one thousand calls a day wereflooding the companys eight hundred number.Most of the callers were shocked and/or outraged, many said that they were consideringswitching to Pepsi. Within six weeks, the eight hundred number was being jammed bySix thousand calls a day. The company also fielded over forty thousand letters, which wereall answered and each person got a coupon for the new Coke. Many American consumers ofCoca-Cola asked if they would have the final say. When Pepsi heard that the Coca-ColaCompany was changing its secret formula they said that it was a decision that Pepsi tastesbetter. Roger Enrico, the president and CEO of Pepsi-Cola wrote a letter to every majornewspaper in the U.S. to declare the victory. Coca-Cola management had to decide: Donothing or "buy the world a new Coke". They decided to develop the new formula.1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke wasbrought back in addition to the new one. This was greatly due to dropping market share andconsumer protest. The market share fell from a high of 15 percent to allow of 1.4 percent.This was said to be a classic marketing retreat. Coca-Cola executives admitted that they hadgoofed by taking the old Coke off the market.The Coca-Cola Company’s eight hundred number received eighteen thousand Calls ofgratitude. The comeback of old Coke drove stock prices to the highest Level in twelve years.This was said to be the only way to regain the lead on the Cola wars.1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.1996 - The Summer Olympics was held in Atlanta, Georgia, the home of Coca-Cola.
    • HISTORY OF PEPSIPEPSI, company founded by CALEB D BRADHAM in 1890 at North Carolina in USA.Its CEO is ROGER ENRICO and in India Pepsi –CO. Holding its chairman MR.RAJIVBAKSHI. The head quarter of Pepsi-CO.in India is at Gurgaon. Presently it is operated in196 countries.Pharmacist CALEB invented it to cure the disease ―DISPARSIA‖ . It is from this wordthat was related to Pepsi. Soon it entered market American market as soft drink whichat that time was mostly dominated by coca-cola, but soon Pepsi was able to dominate thecola market and there after it has been no looking back. Pepsi and coca-cola are engagedin ferocious cold war that has taken the whole world by storm.Pepsi stands 51 positions among the fortunate 500 companies of the world. Its total capitalis approx$3000 crore and total sales annually is worth $37 crore, half of which comes frombeverages and other half from the sack foods division. The beverages arm of the Pepsi co.Is Pepsi-cola company and the snack –food company is called frinto –lay –inc. The year1998 is the centennial year of Pepsi. Its total profit in the year 1996-1997 was worth Rs.45crore approx. The total number of employees engaged in this business is 4.25 lakhsglobally.EMPLOYMENTOPPORTUNITIES:Pepsi provides direct and indirect employment to person in supplying it’s raw materials,packing materials, distribution vehicles, glass bottles, plastic crates, display racks etc. Andto small artisans, painting and small traders in market places activities.All the Pepsi business in India is either in Industries with backward linkages with farmersor in service industries, being highly distribution oriented. It Pepsi system operates over1000 trucks (direct operation) 8000 three-wheeler (distributors) and at least 1000 pushcarts, serving over half a million outlets in India. By the year 2008 the number of outlets tobe served is expected to be doubled.
    • COCA COLA IN INDIACoca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveals itsformula to the government and reduces its equity stake as required under the Foreign ExchangeRegulation Act (FERA) which governed the operations of foreign companies in India. After a 16-yearabsence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Colaownership of the nations top soft-drink brands and bottling network. Coke’s acquisition of localpopular Indian brands including Thumps Up (the most trusted brand in India), Limca, Mazaa, Citraand Gold Spot provided not only physical manufacturing, bottling, and distribution assets but alsostrong consumer preference. This combination of local and Global brands enabled Coca-Cola toexploit the benefits of global branding and global trends in tastes while also tapping into traditionaldomestic markets.Leading Indian brands joined the Companys international family of brands, including Coca- Cola,diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched theKinley water brand and in 2001, Shock energy drink and the powdered concentrate Sun fill hit themarket.From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one of thecountry’s top international investors. Coca-Cola India achieved 39% volume growth in 2002 whilethe industry grew 23% nationally and the Company reached breakeven profitability in the region forthe first time. Encouraged by its 2002performance, Coca-Cola India announced plans to double itscapacity at an investment of $125 million(Rs. 750 crore) between September 2002 and March 2003.Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven wholly-owned bottling operations supplemented by seventeen franchisee-owned bottling operations and anetwork of twenty-nine contract-packers to manufacture a range of products for the company. Thecomplete manufacturing process had a documented quality control and assurance program includingover 400 tests performed throughout the process.The complexity of the consumer soft drink market demanded a distribution process to support700,000 retail outlets serviced by a fleet that includes 10-ton trucks, pen-bay three wheelers, andtrademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the cities.25In addition to its own employees, Coke indirectly created employment for another 125,000 Indiansthrough its procurement, supply, and distribution networks.
    • ORGANISATION CHARTCEO VICE PRESIDENT REGIONWISE AGM PLANT MANAGER RTM MANAGER FINANCE MANAGER SALES MANAGER CHANNEL MANAGER MARKETING EXECUTIVES AREA CAPACITY DEVELOPMENT MANAGER SALES TRAINEE
    • HIERARCHY OF THE ORGANISATION CHIEF EXECUTIVE OFFICER RVP AGM/AODFINANCE MARKETING RTM SALES PRODUCTION HR MANAGER MANAGERACCOUNTS MARKETING RTM EXECUTIVES EXECUTIVE PURCHASE R&D QUALITY ASM STL MD
    • PRICING POLICY FOR INDIAN MARKETCoca-Cola and Pepsi also made the right moves by adapting to cultural barriers in India. One suchbarrier was the affordability of products for Indians. Because India is a country where people areknown to live on very little a day, the idea of getting people to spend what little they have on a softdrink could be quite a stretch. However Coca-Cola India went with an aggressive pricing policy andreduced the price of their soft drinks in 2003 from 15% to 25% nationwide. This move allowed bothcompanies to offer products that were affordable to the target market in India but also encouragedmore Indians to consume Pepsi and Coca-Cola products. Both companies also created smaller sizedbottles to allow for lower prices for Indian consumers. Coca-Cola and Pepsi created bottles in sizefrom 200 ml to 500 ml to adapt to cultural needs and increase their sales. By offering smaller sizedbottles many consumers also increased the frequency in which they were purchasing the soft drinks.MEDIA PROMOTIONTo give a broad look to the marketing strategies of Coca-Cola the following points can be taken intoconsideration regarding their opportunity and threat analysis. Coca-Cola has already dominated many existing brands of Pepsi; however it may be possible thatin the next few years Coca-Cola is going to eat the entire soft drink market. Again it is the threat that the monopoly may not exist after boycotting the Pepsi as because of thechances of arrival of the local brands, these companies may be a threat for Coca-Cola in the next fewyears. Perhaps the current largest threat for Coca-Cola apart from Pepsi is a spiritual and patriotic issuewhich is also a threat for Pepsi, this is the spiritual media channels like Astha and Sanskar.VISIONProfit: maximizing return to shareowners while being mind full of Our overall responsibilityPlanet: Being a responsible global citizen that makes a difference.People: being a great place to work where people are inspired to be the best they can be.Partners: nurturing a winning network of partners and building mutual Loyalty. Portfolio: bringing to the world a portfolio of beverage brands that anticipate and satisfy peopledesire and need.
    • MISSIONCreate consumer products services and communications customer service and bottling systemstrategy process and tools in order to create competitive advantage and deliver superior value to-Consumers as a superior beverage experience.Consumers as an opportunity to grow profit through the use of finished drinks.Bottlers as an opportunity to make reasonable to grow profits and value added Suppliers as an opportunity to make reasonable when creating real value added in environment ofsystem wide teamwork, flexible business system and continuous improvement. Indian society in form of contribution to economic and social development.ACHIEVEMENTS 1. Coca-Cola Wins Golden Peacock Awards For Environment Management In India. 2. Coca-Cola India Wins Golden Peacock Global Award for Corporate Social Responsibility. 3. Community Recognition to Coca-Cola India. 4. ’Water Efficient Unit’ Award to Coca-Cola India. 5. Coca-Cola wins Bhagidari Award- Fourth time in a row. 6. World Environment Foundation Awards - 2005 Golden Peacock Environment Management Award to Kaladera unit
    • PRODUCT PROFILEDIFFERENT BRANDS OF COMPANYThe Coca-Cola Company offers a wide range of products to the customers including beverages, fruitjuices and bottled mineral water. The Company is always looking to innovate and come up with,either complete new products or new ways to bottle or pack the existing drinks. The Coca-ColaCompany has a wide range of products out of which the following products are marketed byHCCBPL:  In the Cola Section:
    •  In the Lemon Section In the Orange section: In the mango section:
    •  In the juice section : In the Soda Water and Bottled Mineral Water section: BRANDS TAGLINE Thums up - Taste the thunder Coca-Cola - Open happiness, Thanda matlab Coca-Cola Sprite - Seedhi baat no bakwaas , clear hai Limca - Fresh ho jao, mazza taazgi ka Fanta(Apple) - Go bite Mazaa - Bina guthli wala aam
    • BRAND AMBASSDORS Thums up - Akshay Kumar Coca-Cola - Aamir Khan, Imran khan Sprite - Shahrukh Khan Fanta - Genelia D’souza Limca - Riya Sen Mmpo- Nikhil Chinnappa PRODUCTS WIDTH AND DEPTHVARIANT 200ML 250ML 300ML 330ML 500ML 600ML 1LT 1.25LT 1.5LT 2LTCOCA Y N Y Y N Y N Y N YCOLATHUMPS Y N Y Y N Y N Y N YUPMAZZA N Y N N Y N 1.2LT N N NLIMCA Y N Y Y N Y N Y N YDIET N N N Y N N N N N NCOKEFANTA Y N Y Y N Y N Y N YSPRITE Y N Y Y N Y N Y N YMMPO N N N N 400ML N Y N N NMMNF N N N N 400ML N N N N NKINLEY N N N N Y N Y N N NWATERKINLEY N N Y N Y Y N N N NSODA
    • NUMBER OF BOTTLES IN A CASE1 CARATE (200ML,250ML,300ML) 24600ML 241.2LT 121.25LT 122LT 9400ML 24SWOT ANALYSISSWOT analysis is a basic, straightforward model that provides direction and serves as a basis for thedevelopment of marketing plans. It accomplishes this by assessing an organizations Strength (what anorganization can do) and Weakness (what an organization cannot do) in addition to Opportunities(potential favorable conditions for an organization) and Threats (potential unfavorable condition foran organization).SWOT analysis is an important step in planning and its value is often underestimated despite thesimplicity in creation. The role of SWOT analysis is to take the information from the surrounding andseparate it from internal issues (strength and weaknesses) and external issues (opportunities andthreats). Swot analysis assists the firm in accomplishing its objectives (strength or opportunity) andovercoming the obstacles (weakness or threats).STRENGTH1. Better network – covers whole of the city.2. Brand recognition – brand image among customers3. Brand equity – high equity in the market.4. Advertisement policy – Coca Cola Company has endorsed with famous Personalities like AamirKhan, Hrithik Roshan, Akshya Kumar, Priyanka Chopra,Kareena Kapoor and many more.5. Bottling plants –27 wholly-owned bottling operations Supplemented by 17 franchisee-ownedbottling operations and a Network of 29 contract-packers to manufacture a range of products for thecompany.6. Promotional schemes – to activate sales company is providing Umbrellas, Chairs, Tables, racks,flanges, visicooler & glasses.
    • WEAKNESSES 1. Weak and irregular supply. 2. Irregular visit of EXECUTIVES. 3. Low product availability. 4. Scarcity of manpower.OPPORTUNITY 1. Greater opportunity in rural areas where coca cola can gain a Substantial base. 2. 70% of total population lies in rural area, and market penetration of soft Drink is only 12% hence there is greater scope of increasing revenue of the Coca cola Company. 3. Opening new outlets in the area where the coca cola’s market share is less. 4. Company should offer schemes for long term profit to the retailer so that they get involved in long term association. 5. Covering greater institutional areas as younger generation gets much Fascination out of such beverages.THREATS 1. Impulse customer’s buy whatever is in the offer, so company should Give offers regularly. 2. Health conscious people are boycotting soft drinks. 3. Threat from Competitors as they give offers at cheaper rates than coca cola. 4. It’s too seasonal 5. People are becoming health conscious
    • ABOUT THE COMPETITORPepsiCo, Inc. (the "Company") was incorporated in Delaware in 1919 and was reincorporated inNorth Carolina in 1986. PepsiCo is engaged in the beverage and snack food businesses. On October6, 1997, the Company spun off certain of its restaurant businesses, consisting of Pizza Hut, Taco Belland KFC, to shareholders as an independent publicly-traded company. In addition, Company disposedof PFS, its restaurant distribution operation and its noncore restaurant businesses. PepsiCos beverage businesses, which operate as Pepsi-Cola Company, are comprised of twobusiness units: Pepsi-Cola North America ("PCNA"), and Pepsi-Cola Company International ("PCI").PCNA manufactures and sells beverage products, primarily soft drinks and soft drink concentrates, inthe United States and Canada. PCNA sells its concentrates to licensed bottlers ("Pepsi-Cola bottlers").Under appointments from PepsiCo, Pepsi-Cola bottlers manufacture, sell and distribute, withindefined territories, soft drinks and syrups bearing trademarks owned by PepsiCo, including PEPSI-COLA, DIET PEPSI, MOUNTAIN DEW, SLICE, MUG, ALL SPORT and, within Canada, 7UP andDIET 7UP (these products are sometimes referred to as "Pepsi-Cola beverages"). Pepsi-Colabeverages are manufactured in approximately 165 plants located throughout the United States andCanada. PCNA operates approximately 60 plants, and manufactures, sells and distributes beveragesthroughout approximately 450 licensed territories, accounting for approximately 60% of the Pepsi-Cola beverages sold in the United States and Canada.PCI manufactures and sells beverage products,primarily soft drinks and soft drink concentrates, outside the United States and Canada. PCI sells itsconcentrates to Pepsi- Cola bottlers. Under appointments from PepsiCo, Pepsi-Cola bottlersmanufacture, sell and distribute, within defined territories, beverages bearing PEPSI-COLA, 7UP,MIRINDA, DIET PEPSI, PEPSI MAX, MOUNTAIN DEW, DIET 7UP and other trademarks. PCIoperates 37 plants bottling PepsiCo beverage products. There are approximately 275 plants operatedby independent licensees or unconsolidated affiliates bottling PepsiCos beverage products which areavailable in 186 countries and territories outside the United States and Canada. Principal internationalmarkets include Argentina, Brazil, China, India, Mexico, the Philippines, Saudi Arabia, Spain,Thailand and the United Kingdom.
    • RATIONAL OF THE STUDYSales and distribution is an integral part of marketing. Here, Coca Cola the leading brand in softdrinks worldwide. Coke has maintained its brand image with high precision. The marketing strategyof Coke is very stringent than others. The main features in their marketing by their offerings and itssales and distribution. It’s my gratitude to work with Coca Cola Company especially in marketingdepartment. I have been placed their in sales and distribution department for my internship. Theresearch work was not as easy as Coca Cola is very strict in their marketing policy. In the beginningthe main reason for conducting this study was to know the proper allocation of distribution to thesuppliers and also to know about the products sales. Further, it is to understand the availability of theproduct and to check out that there is the proper advertising of the product and also to know theworking condition of the visi cooler provided by the company. Also to know the various schemeprovided by the Coca Cola is really applied in the market or not. And to compare the schemes withPepsi products. The study is done to understand the problem of the retailers, and understanding thepresale concept.RESEARCH OBJECTIVEPRIMARY OBJECTIVE:TO ANALYZE HOW COKE AND PEPSI LEARN TO COMPETE IN INDIA SECONDARY OBJECTIVE: 1. To analyze the distribution channel system. 2. To check the brand availability. 3. To analyze the effectiveness of the schemes launched by the company. 4. To find the retailer’s satisfaction.. 5. To ensure the visibility of the product. 6. To give valued suggestion to the company.
    • DISTRUBUTIONDistribution of coca cola is done basically in two ways:-a) Direct operation.b) Indirect operation.But the distribution of Coca Cola varies from place to place. In India Coca Cola is doing hisdistribution by direct operation, indirect operation & by both also. Especially in Ranchi coca cola isdoing its distribution by both direct operation & indirect operation.DISTRIBUTION NETWORKHCCBPL has a wide and well-managed network of salesmen appointed for taking up theresponsibility of distribution of products to diverse parts of the cities. The distribution channels areconstructed in such a way that the demand of customers is fulfilled at the right place and the righttime when they need it. A typical distribution chain at HCCBPL would be:Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- RetailStock --- Retail Shelf --- ConsumerThe customers of the Company are divided into different categories and different routes, and everysalesman is assigned to one particular route(PJP), which is to be followed by him on a daily basis. Adetailed and well-organized distribution system contributes to the efficiency of the salesmen.DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITYCoca-cola Company distributes their schemes according to area. Area or place where soft drinks soldin a large manner, on those place company gives good schemes to shopkeeper and retailer. Place likerailway station bus stand are consider in this category and place which have low selling wherecompany gives small schemes to the shopkeeper.DIRECT OPERATION:Here company does its distribution by himself. There is no role of middle man. Every activities of adistribution process is under the control of the company. Here coca cola runs its own vehicles in thatparticular area for the distribution. By direct operation company gains a lot. The direct operation ofthe coca cola is as follows:- COMPANYCOMPANY DSD RETAILERS CONSUMERSIn 2006 there were only 14 towns under DSD which has been increased to 48 towns by 2009.
    • INDIRECT OPERATION:Here in the distribution process middleman’s role came into existence. In coca cola the distributor isthe middle man. Everything is not under the control of the company. Basically Coca Cola Companyselects a person for some specific areas for the distribution process.Indirect operation of coca cola in Ranchi is as follows:-- COMPANY The number of distributors in COMPANY India was 4100 in DEPOT 2006 which has been reduced to 2740 in 2009. DISTRIBUTOR RETAILER CONSUMER
    • AREAS OF DIRECT OPERATIONS IN RANCHIAREA ROUTE IDHARMOO RX 9002HINOO RX9003HATIA RX9004UPPER BAZZAR RX9005KANKE RX9006MURI RX9007ASHOK NAGAR RX9008DORANDA RX9009DHURWA RX9010HIGHWAY RX9011MAINROAD1 RX9012MAINROAD2 RX9013STATION ROAD RX9014AZAD BASTI RX9015PURLIYA ROAD RX9016KATATOLI RX9017KOKAR RX9018CIRCULAR ROAD RX9019HINDPIDI RX9020CHUTIA RX9021KHADGADA RX9022BARIATU RX9025KACHERI RX9026NAMKUM RX9027
    • MARKET MAP OF RANCHI:
    • RESEARCH METHODOLOGYThe topic “COKE AND PEPSI LEARN TO COMPETE IN INDIA” for the project work wassuggested to me by the RTM of Hindustan Coca-Cola Beverage private limited. He asked me toconduct a survey in areas where the coca-cola market is weak as well as high and to make a study ofits major competitor “PEPSI”..Armed with the ideas provided to me by the RTM and the Area Sales Manager, I went ahead for theresearch. In order to collect samples during my survey I planned to take recourse to the RandomSampling because as the name suggests, in this method of sampling any unit of population can beselected at random. In my research, the retailers in Ranchi comprise the universe. Therefore, they arethe ones who constitute as the main source of information to me.SAMPLE SIZE FOR SURVEYThe survey was done in about 200 shops including eateries& drinkeries, groceries and other conveniences.SCOPE OF THE STUDY 1. By this study company can know its growth. 2. This study helps the company to know their actual position in the market. 3. This study also helps to get a clear idea about where the co. is lagging behind & where it is ahead of its compititors.METHOD OF DATA COLLECTIONThere are different methods of data collection. They are:-observation, experimentation, uncontrolledexperimentation, controlled experimentation, survey and focus group. Here the data are collected bymarket survey.
    • MARKET SURVEYMarket survey is one of the most widely used MR technique .it is at times viewed as synonymouswith marketing research. This is erroneous. It has to be understood clearly that market survey is justone of the techniques of MR and is not synonymous with MR. It is just one of the methods ofcollecting marketing information required for a given marketing assignment. It is used when therequired data is not available with the company’s internal records, as well as external publishedsource. Here the researcher carries out opinion pools involving sales persons, dealers, traders andexperts. Trade surveys are very common. In conducting these surveys, the researcher has to carefullyselect the instrument and methods of surveying.METHODOLOGYThe data can be dichotomized into two types: primary data, secondary. In this study the data collectedwas mainly primary data. The respondents were from the area of Ranchi. The secondary data wereobtained from the Coca-Cola city office. The sample size collected for the various objectives where,from the total number of outlet the sample size determined was: 200INSTRUMENT FOR DATA COLLLECTION:The primary data collected through the survey method for the purpose of the study. The survey wasdone by using questionnaire method. Beside this I had an informal discussion with the retail outlet.Secondary data: information regarding the organization was obtained from secondary sources likecompany journals, company websites, publications & records.
    • RESEARCH DESIGNThe design appropriate for this research is Exploratory Research Design. Exploratory research studiesare also termed as formulative research studies. The main purpose of such studies is that offormulating a problem for more precise investigation or of developing the working hypothesis froman operational point of view. The major emphasis in such studies is on the discovery of ideas andinsights. As such the research design appropriate for such studies must be flexible enough to provideopportunity for considering different aspects of a problem under study in built flexibility in researchdesign is needed because the research problem, broadly defined initially as transformed in to one withmore precise meaning in explanatory studies, which fact may necessitate changes in the researchprocedure for gathering relevant data.The survey was conducted in RANCHI by asking from dealers.The Exploratory Research Design could be accomplished by study of secondary data:  Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process.  Company is product information brochure.  Various articles related to consumer electronics published in the newspapers & magazines.  Company’s profile brochure.
    • DATA ANALYSIS AND INTERPRETATIONSURVEY OF OUTLETS IN RANCHI :There are some specific areas covered for the purpose of survey in the state capital of Jharkhand,Ranchi. Generally these areas are weaker in terms of sales. To find out the reason of retailer’sunsatisfaction, loop hole in the distribution system and the improvement to be needed for highsatisfaction as it will increase the sales volume, the survey was done.AREA COVERED: HINOO HARMOO MAIN ROAD1 MAINROAD2 HINDPIDI RATU ROAD1 RATUROAD2 HIGHWAY1 HIGHWAY2 BARIYATU MORABADI PURLIYA ROAD KHADGADA CIRCULAR ROAD KACHERI KOKAR UPPER BAZZAR ASHOK NAGAR KANKE NAMKUMM AZAD BASTI
    • MARKET OBSERVATIONS:DEALER’S RESPONSEA. Management Problems 1. Company does not support dealers  No regular visit from the sales people. 2. Dealers are annoyed with the sales representative.  No stock delivery after being ordered. 3. Services are very poor.  No new price list  Billing problem 4. Replacement problem (Time Consuming and Negligence).  Replacement of BBD stocks pending since 6 months or more.B. Market Picture  No direct letter is given to the retailer regarding the schemes introduced by the company.  Not proper supply of each flavor (SKU).  Poor delivery of stocks against order.
    • FINDINGS AND ANALYSIS1. Type of outlet visited. Outlet Visited 90 80 70 60 50 40 Outlet Visited 30 20 10 0 General Store Pan Store Sweet shop Canteen2. Which brand of soft drinks you deal in? Series 1 100 90 80 70 60 50 Series 1 40 30 20 10 0 Coca Cola Pepsi Both Others
    • 3. Which company’s signage you have in your outlet? Series 1 80 70 60 50 40 Series 1 30 20 10 0 Coca cola Pepsi Both No signage4 Which company’s visi- cooler you have in your outlet ? Series 1 120 100 80 60 Series 1 40 20 0 coca cola pepsi Both Mixed
    • 5. Which company have better distribution network? Series 1 120 100 80 60 Series 1 40 20 0 coco cola pepsi both6. Which is most preferred size of the bottle by customer? Series 1 60 50 40 30 Series 1 20 10 0 200ml 300ml 500ml 1000ml 1500ml 2000ml
    • 7. Do the customer know the difference between branded andunbranded soft drinks? Series 1 160 140 120 100 80 Series 1 60 40 20 0 Yes No 8. What type of cold drinks you are selling? Series 1 90 80 70 60 50 40 Series 1 30 20 10 0 Branded Unbranded Both
    • 9. Major age group of customers who buy soft drinks? Series 1 60 50 40 30 Series 1 20 10 0 Category 1 0-15 15- 25 25-35 35-45 45-5510. What do you feel about the price of branded soft drinks ? Series 1 120 100 80 60 Series 1 40 20 0 yes no no reply
    • 11 Do you feel a price reduction will increase the sales ofbranded soft drinks ? Series 1 200 180 160 140 120 100 Series 1 80 60 40 20 0 yes no12. Do you think that aggressive advertising further increasethe sales volume of Pepsi? Series 1 120 100 80 60 Series 1 40 20 0 New schemes Refrigeration system
    • 13. What are your suggestion to improve the sale ? Series 1 80 70 60 50 40 30 20 Series 1 10 0CONCLUSION: 1. The Beverages market can be segmented mainly on price and quality basis as all the players in the market have matched same quantity standards. 2. The customers basically have very thin idea about the product and hence the role of dealer becomes significant. 3. Most of the customers are driven either by past brand image or recent ad-commercials. 4. The brand awareness is most important determinants, pricing takes a back seat. 5. Retailers are keen to sold Coca Cola ,because of the bran and quality maintained by it. 6. The whole research shows that there are only two companies dominating in the soft drinks market- coca-cola and Pepsi. There is neck – to- neck competition in between these companies.
    • SUGGESTIONS & RECOMMENDATIONS 1. Coca Cola needs to view its intermediaries in the same way that it views its end uses. The company should determine channel numbers needs and should provide Capability building program’s to improve intermediaries performance. 2. Company can keep the retailers happy by paying regular visits to them and also ask them to continuously monitor the consumers and their problem. 3. Company use motivators like high margin, special deals, advertising allowance etc. 4. The company should clearly communicate what it wants from its retailers in the way of market coverage, market development and marketing information. 5. Coca Cola has competitions with Pepsi. Therefore it advisable that prompt and proper service be maintained. Also the product quality should be checked before delivery. 6. Coca Cola must periodically evaluate its channel performance against standards such as sales , average inventory levels, customer delivery time, treatment of damaged goods and cooperation in promotional training program. It is important that under performers need to be re-motivated or terminated. 7. Brand image has been the first and foremost important thing in Fast Moving Consumer Goods (FMCG) segments. Coca Cola has made good brand reputation among the customers. It gets hamper due to weak supply that is provided to retailers and consumers. . This will increase the satisfaction level of the customers. 8. Retailers and Consumers have sense of belongingness towards the Hindustan Coca Cola Beverages Pvt. Ltd.(HCCBPL). It can be achieve by various ways:  The quality of interaction between the company official & retailers should be improved.  Schemes should be made such that customers and retailers both get benefited through the schemes.  Monthly meetings may be arranging to access the performance of poor markets . This will give them a sense of responsibility.
    • LIMITATIONS The major limitations of the project work under study is time , since it is to be completed within a period of two months and this time period may not be sufficient to undertake a comprehensive study. This study is exclusively from HCCBPL, Ranchi and the results cannot be extrapolated to other organization. Being a project student, it created some hurdles in getting the true feedback from the respondents. Being a student financial constraints was also there. The area was too big to cover as the market share is about 82%.
    • QUESTIONAIREQ1. Type of outlet (a) General store (b) Pan shop (C) Sweet shop (d) CanteenQ2. Which brand of soft drinks you deal in ? (a) Coca cola (b) Pepsi (c) Both (d) Others Q3. Which company’s signage you have in your outlet? (a) Coca cola (b) Pepsi (c)Both (d) No signage Q4. Which company’s visi- cooler you have in your outlet ? (a) Coca cola (b) Pepsi (a) Both (d) Mixed Q5. Which company have better distribution network ? (a) Coca cola (b) Pepsi (C) Both Q6. Which is most preferred size of the bottle by customer? 200ml 300ml 500ml 1000ml 1500ml 2000ml
    • Q7. Do the customer know the difference betweenbranded and unbranded soft drinks? Yes No Q8. What type of cold drinks you are selling ?(a) Branded (b) unbranded (c) Both Q9. Major age group of customers who buy soft drinks ?(a) 5-15 (b) 15-25 (c) 35-45 (d) 45-55 Q10. What do you feel about the price of branded soft drinks ? (a) Very high (b) High (c) Medium (d) Low (e) Reasonable Q11. Do you feel a price reduction will increase the sales ofbranded soft drinks ? (a) Yes (b) No
    • Q12. Which medium affect the sales most? (a)Television (b) Magazines/News papers (c) Display (d) Wall paintings/HoardingsQ13. Do you think that aggressive advertising furtherincrease the sales volume of Pepsi? (a) Yes (b) No (c) No replyQ14. What kind of promotional activities affect sale mostly ? (a)Free bottle scheme (b) Prize (c) Discount carats (d) OtherQ15. What are your suggestion to improve the sale ? (a) New schemes (b) Refrigeration system (c) Advertisement (d) Reduction in deposits (e) Credit facilities (f) Regular supply
    • BIBLIOGRAPHY (1) Website of Hindustan Coca Cola Beverages Pvt. Ltd. http: www.coca-colaindia.com (2) Information brochure of Coca Cola. (3) Research Methodology by C.R. Kothari. (4) Marketing Management, Kotler & Keller. (5) Consumer Behavior, Keith Davis.