Project coca cola & pepsi. 21 may 13

  • 2,804 views
Uploaded on

 

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
2,804
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
214
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Project Report On “ COKE VERSUS PEPSI COMPETITION IN INDIA, WITH REFERENCE TO HYDERABAD ” Submitted in partial fulfillment for the award of Post Graduate Diploma in Management By Ashutosh Kumar Roll Number [09] To ICBM - School of Business Excellence Hyderabad. 2012-2014
  • 2. Declaration This is to certify that the Report on “ COKE VERSUS PEPSI COMPETITION IN INDIA, WITH REFERENCE TO HYDERABAD ” is my bonafide work , carried out under the guidance of Mr. Mahesh of……….. and Prof. M . S . Nair of ICBM – School of Business Excellence. This Report has not been submitted to any other University / Institution, for award of any degree / diploma. Date : [ ASHUTOSH KUMAR ]
  • 3. ACKNOWLEDGEMENTS I would like to express my sincere gratitude to Mr. J.K. Choudhary for giving me an opportunity to work on a live project. I am very grateful to Mr. Anjani Kumar ……………. 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. Vishal Ranjan…………….. who had given their guidance which helped me to complete my project successfully. At last I want to thank all the staffs of human resource, stores, shipping and marketing for their co-ordination without whom it would have been very difficult for me in achieving my target and making the project successful. I also wish to express my deep gratitude to Prof. S. Zarar and Prof. M. S. Nair of ICBM – School of Business Excellence for all the help, support, guidance and encouragement extended to me during the project work. Date : [ ASHUTOSH KUMAR ]
  • 4. Preface Any training programme sharpens those instincts, which serve as a fulfillment of theoretical grounding. As the present day business world is very complex, where Human Ingenuity and Acumen are sharpened by highly specialized knowledge in various branches pertaining the running and conducting. The research project is ´COKE VERSUS PEPSI COMPETITION IN INDIA, WITH REFERENCE TO HYDRERABAD ” The different organized markets that I have chosen for research was main areas of Hyderabad. Research is a feedback that any organization seeks for the purpose of effective policy and decision making. It is the systematic problem analysis, model building & fact finding for the purpose of important decision-making & control in the making of goods and services. Summer Project is a part of the curriculum so that students get exposed to the practical side our theoretical know-how. This is basically designed to the real life situation. In this training programme, the students use their academic knowledge practically which polishes the decision - making abilities of MBA graduates. For developing healthy managerial and administrative skills of potential managers, it is necessary that theoretical knowledge be supplemented with exposure to real life business environment. Conventional academic medium cannot sell anything practically unless down to earth, real and practical market knowledge is available to make hard core corporate decisions and strategies. This research work gave me the opportunity to apply conceptual skills to practical application and to learn the art of conducting study and presenting its findings in a systematic and scientific way.
  • 5. CONTENTS HEADINGS PAGE NO. 1. Introduction - 5 2. Company Profile - 23 3. About Competitor - 25 4. Rationale of the study - 26 5. Distribution - 27 6. Market Map of Ranchi - 31 7. Research Methodology - 32 8. Observation - 36 9. Findings and Analysis - 40 10. Conclusion - 54 11. Suggestions & Recommendations- 55 12. Limitations - 56 13. Annexure - 57
  • 6. Chapter 1 RATIONALE OF THE STUDY Sales and distribution is an integral part of marketing. Here, Coca Cola the leading brand in soft drinks worldwide. Coke has maintained its brand image with high precision. The marketing strategy of Coke is very stringent than others. The main features in their marketing by their offerings and its sales and distribution. It’s my gratitude to work with Coca Cola Company especially in marketing department. I have been placed their in sales and distribution department for my internship. The research work was not as easy as Coca Cola is very strict in their marketing policy. In the beginning the main reason for conducting this study was to know the proper allocation of distribution to the suppliers and also to know about the products sales. Further, it is to understand the availability of the product and to check out that there is the proper advertising of the product and also to know the working condition of the visi cooler provided by the company. Also to know the various scheme provided by the Coca Cola is really applied in the market or not. And to compare the schemes with Pepsi products. The study is done to understand the problem of the retailers, and understanding the presale concept. RESEARCH OBJECTIVES PRIMARY OBJECTIVE: TO ANALYZE HOW COKE AND PEPSI LEARN TO COMPETE IN INDIA, WITH REFERENCE TO HYDERABAD.
  • 7. 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. DISTRUBUTION Distribution 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 his distribution by direct operation, indirect operation & by both also. Especially in Ranchi coca cola is doing its distribution by both direct operation & indirect operation. DISTRIBUTION NETWORK HCCBPL has a wide and well-managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when they need it. A typical distribution chain at HCCBPL would be: Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail Stock --- Retail Shelf --- Consumer The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route(PJP), which is to be followed by him on a daily basis. A detailed and well-organized distribution system contributes to the efficiency of the salesmen.
  • 8. DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY Coca-cola Company distributes their schemes according to area. Area or place where soft drinks sold in a large manner, on those place company gives good schemes to shopkeeper and retailer. Place like railway station bus stand are consider in this category and place which have low selling where company 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 a distribution process is under the control of the company. Here coca cola runs its own vehicles in that particular area for the distribution. By direct operation company gains a lot. The direct operation of the coca cola is as follows:-
  • 9. Chapter 2 COMPANY PROFILE HISTORY OF COCA-COLA JOHN PEMBERTON The world has changed in many ways since pharmacist; John Stith Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the product mean so many things to hundreds of Millions of consumers around the globe. Coca-Cola products are served more than 705 million times every day, quenching the thirsts of consumers in more
  • 10. than 195 countries in every climate. That's a long way to come after such a modest beginning. May1886 - Pemberton concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first "distributed" the new product by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design or accident, Carbonated water was teamed with the new syrup, producing a drink that was Proclaimed "Delicious and Refreshing." Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the name and penned, in the unique flowing script that is famous worldwide today. 1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the No. 1 soft drink brand ever since. 1891 - Atlanta entrepreneur Mr. Candler had acquired complete ownership of the Coca-Cola business for $2,300. Pemberton was forced to sell because he was in a state of poor health and was in debt. Within four years, Candler's merchandising flair helped expand consumption of Coca-Cola to every state and territory. 1917 - 3 Million Coke's sold per day. "COCA-COLA" is the world’s most recognized trademark. 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 25 million dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president for six decades. Woodruff's leadership took the business to unrivaled heights of commercial success, making Coca-Cola an institution the world over.
  • 11. During the Woodruff era, Mr. Woodruff made a promise to the armed forces of the United States to supply Coca-Cola to every serviceperson. He said that costs and location did not matter; he supplied 5 billion bottles to the service. 1925 - 6 Million Coke's 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 Eisenhower's Allied Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve American servicemen overseas. Eventually, 64 plants were set up during WWII. 1950 - Advertising on the television began. Currently Coca-Cola is advertised on over five hundred TV channels around the world. 1961 - Sprite was introduced. 1971 - The song "I'd like to Buy the World a Coke" was released. 1978 - The two liter bottle was introduced, and during that same year the company also introduced plastic bottles 1982 - Diet Coke was introduced in July. 1985 - The Coca-Cola Company made what has been known as one of the biggest marketing blunder. They stumbled into a new formula in efforts to produce diet Coke. They put forth 4 million 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 Coke's market share fell 2.5 percent in four years. Each percentage point lost or gain meant 200 million dollars. This was the first flavor change 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 and newspaper reporters attended this very glitzy announcement. The change to the world's best selling soft drink was heard by 81 percent of the United States population within
  • 12. twenty-four hours of the announcement. Within a week of the change, one thousand calls a day were flooding the company's eight hundred number. Most of the callers were shocked and/or outraged, many said that they were considering switching to Pepsi. Within six weeks, the eight hundred number was being jammed by Six thousand calls a day. The company also fielded over forty thousand letters, which were all answered and each person got a coupon for the new Coke. Many American consumers of Coca-Cola asked if they would have the final say. When Pepsi heard that the Coca-Cola Company was changing its secret formula they said that it was a decision that Pepsi tastes better. Roger Enrico, the president and CEO of Pepsi-Cola wrote a letter to every major newspaper in the U.S. to declare the victory. Coca-Cola management had to decide: Do nothing 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 was brought back in addition to the new one. This was greatly due to dropping market share and consumer 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 had goofed by taking the old Coke off the market. The Coca-Cola Company’s eight hundred number received eighteen thousand Calls of gratitude. 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 PEPSI PEPSI, company founded by CALEB D BRADHAM in 1890 at North
  • 13. Carolina in USA. Its CEO is ROGER ENRICO and in India Pepsi –CO. Holding its chairman MR.RAJIV BAKSHI. The head quarter of Pepsi-CO.in India is at Gurgaon. Presently it is operated in 196 countries. Pharmacist CALEB invented it to cure the disease ―DISPARSIA‖ . It is from this word that was related to Pepsi. Soon it entered market American market as soft drink which at that time was mostly dominated by coca-cola, but soon Pepsi was able to dominate the cola market and there after it has been no looking back. Pepsi and coca-cola are engaged in 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 capital is approximately $3000 crore and total sales annually is worth $37 crore, half of which comes from beverages 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 year 1998 is the centennial year of Pepsi. Its total profit in the year 1996-1997 was worth Rs.45 crore approx. The total number of employees engaged in this business is 4.25 lakhs globally.
  • 14. COCA COLA IN INDIA Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveals its formula to the government and reduces its equity stake as required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Coke’s acquisition of local popular Indian brands including Thumps Up (the most trusted brand in India), Limca, Mazaa, Citra and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also strong consumer preference. This combination of local and Global brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes while also tapping into traditional domestic markets. Leading Indian brands joined the Company's international family of brands, including Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched the Kinley water brand and in 2001, Shock energy drink and the powdered concentrate Sun fill hit the market. From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one of the country’s top international investors. Coca-Cola India achieved 39% volume growth in 2002 while the industry grew 23% nationally and the Company reached breakeven profitability in the region for the first time. Encouraged by its 2002performance, Coca-Cola India announced plans to double its capacity 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 a network of twenty-nine contract-packers to manufacture a range of products for the company. The complete manufacturing process had a documented quality control and assurance program including over 400 tests performed throughout the process. The complexity of the consumer soft drink market demanded a distribution process to support 700,000 retail outlets serviced by a fleet that includes 10-ton trucks, pen-bay three wheelers, and trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the cities.25 In addition to its own employees, Coke indirectly created employment for another 125,000 Indians through its procurement, supply, and distribution networks.
  • 15. ORGANISATION CHART VICE PRESIDENT REGIONWISE AGM PLANT MANAGER RTM MANAGER FINANCE MANAGER CHANNEL MANAGER SALES MANAGER MARKETING EXECUTIVES AREA CAPACITY DEVELOPMENT MANAGER SALES TRAINEE CEO
  • 16. HIERARCHY OF THE ORGANISATION CHIEF EXECUTIVE OFFICER RVP AGM/AOD FINANCE RTM MANAGER MARKETING SALES MANAGER PRODUCTION HR ACCOUNTS MARKETING EXECUTIVES RTM EXECUTIVE STL MD PURCHASE ASM R&D QUALITY
  • 17. PRICING POLICY FOR INDIAN MARKET Coca-Cola and Pepsi also made the right moves by adapting to cultural barriers in India. One such barrier was the affordability of products for Indians. Because India is a country where people are known to live on very little a day, the idea of getting people to spend what little they have on a soft drink could be quite a stretch. However Coca- Cola India went with an aggressive pricing policy and reduced the price of their soft drinks in 2003 from 15% to 25% nationwide. This move allowed both companies to offer products that were affordable to the target market in India but also encouraged more Indians to consume Pepsi and Coca-Cola products. Both companies also created smaller sized bottles to allow for lower prices for Indian consumers. Coca-Cola and Pepsi created bottles in size from 200 ml to 500 ml to adapt to cultural needs and increase their sales. By offering smaller sized bottles many consumers also increased the frequency in which they were purchasing the soft drinks. MEDIA PROMOTION To give a broad look to the marketing strategies of Coca-Cola the following points can be taken into consideration regarding their opportunity and threat analysis. Coca-Cola has already dominated many existing brands of Pepsi; however it may be possible that in 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 the chances of arrival of the local brands, these companies may be a threat for Coca-Cola in the next few years. Perhaps the current largest threat for Coca-Cola apart from Pepsi is a spiritual and patriotic issue which 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.
  • 18.  Portfolio: bringing to the world a portfolio of beverage brands that anticipate and satisfy people desire and need. MISSION Create consumer products services and communications customer service and bottling system strategy 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 of system 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
  • 19. PRODUCT PROFILE DIFFERENT BRANDS OF COMPANY The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices 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-Cola Company has a wide range of products out of which the following products are marketed by HCCBPL:  In the Cola Section:
  • 20.  In the Lemon Section  In the Orange section:  In the mango section:
  • 21.  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
  • 22. 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 DEPTH VARIANT 200ML 250ML 300ML 330ML 500ML 600ML 1LT 1.25LT 1.5LT 2LT COCA COLA Y N Y Y N Y N Y N Y THUMPS UP Y N Y Y N Y N Y N Y MAZZA N Y N N Y N 1.2LT N N N LIMCA Y N Y Y N Y N Y N Y DIET COKE N N N Y N N N N N N FANTA Y N Y Y N Y N Y N Y SPRITE Y N Y Y N Y N Y N Y MMPO N N N N 400ML N Y N N N MMNF N N N N 400ML N N N N N KINLEY WATER N N N N Y N Y N N N KINLEY SODA N N Y N Y Y N N N N NUMBER OF BOTTLES IN A CASE
  • 23. 1 CARATE (200ML,250ML,300ML) 24 600ML 24 1.2LT 12 1.25LT 12 2LT 9 400ML 24 SWOT ANALYSIS SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations Strength (what an organization can do) and Weakness (what an organization cannot do) in addition to Opportunities (potential favorable conditions for an organization) and Threats (potential unfavorable condition for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the surrounding and separate it from internal issues (strength and weaknesses) and external issues (opportunities and threats). Swot analysis assists the firm in accomplishing its objectives (strength or opportunity) and overcoming the obstacles (weakness or threats). STRENGTH 1. Better network – covers whole of the city. 2. Brand recognition – brand image among customers 3. Brand equity – high equity in the market. 4. Advertisement policy – Coca Cola Company has endorsed with famous Personalities like Aamir Khan, Hrithik Roshan, Akshya Kumar, Priyanka Chopra,Kareena Kapoor and many more. 5. Bottling plants –27 wholly-owned bottling operations Supplemented by 17 franchisee-owned bottling operations and a Network of 29 contract-packers to manufacture a range of products for the company.
  • 24. 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
  • 25. Chapter 1 RATIONALE OF THE STUDY Sales and distribution is an integral part of marketing. Here, Coca Cola the leading brand in soft drinks worldwide. Coke has maintained its brand image with high precision. The marketing strategy of Coke is very stringent than others. The main features in their marketing by their offerings and its sales and distribution. It’s my gratitude to work with Coca Cola Company especially in marketing department. I have been placed their in sales and distribution department for my internship. The research work was not as easy as Coca Cola is very strict in their marketing policy. In the beginning the main reason for conducting this study was to know the proper allocation of distribution to the suppliers and also to know about the products sales. Further, it is to understand the availability of the product and to check out that there is the proper advertising of the product and also to know the working condition of the visi cooler provided by the company. Also to know the various scheme provided by the Coca Cola is really applied in the market or not. And to compare the schemes with Pepsi products. The study is done to understand the problem of the retailers, and understanding the presale concept. RESEARCH OBJECTIVES PRIMARY OBJECTIVE: TO ANALYZE HOW COKE AND PEPSI LEARN TO COMPETE IN INDIA, WITH REFERENCE TO HYDERABAD. SECONDARY OBJECTIVE: 1To analyze the distribution channel system. 6. To check the brand availability. 7. To analyze the effectiveness of the schemes launched by the company.
  • 26. 8. To find the retailer’s satisfaction. 9. To ensure the visibility of the product. DISTRUBUTION Distribution 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 his distribution by direct operation, indirect operation & by both also. Especially in Ranchi coca cola is doing its distribution by both direct operation & indirect operation. DISTRIBUTION NETWORK HCCBPL has a wide and well-managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when they need it. A typical distribution chain at HCCBPL would be: Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail Stock --- Retail Shelf --- Consumer The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route(PJP), which is to be followed by him on a daily basis. A detailed and well-organized distribution system contributes to the efficiency of the salesmen. DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY Coca-cola Company distributes their schemes according to area. Area or place where soft drinks sold in a large manner, on those place company gives good schemes to shopkeeper and retailer. Place like railway station bus stand are consider in this category and place which have low selling where company gives small schemes to the shopkeeper.
  • 27. DIRECT OPERATION: Here company does its distribution by himself. There is no role of middle man. Every activities of a distribution process is under the control of the company. Here coca cola runs its own vehicles in that particular area for the distribution. By direct operation company gains a lot. The direct operation of the coca cola is as follows:- activities of a distribution process is under the control of the company. Here coca cola runs its own vehicles in that particular area for the distribution. By direct operation company gains a lot. The direct operation of the coca cola is as follows:- INDIRECT OPERATION: Here in the distribution process middleman’s role came into existence. In coca cola the distributor is the middle man. Everything is not under the control of the company. Basically Coca Cola Company selects a person for some specific areas for the distribution process. Indirect operation of coca cola in Ranchi is as follows:-- COMPANY COMPANY DEPOT DISTRIBUTOR The number of distributors in India was 4100 in 2006 which has been reduced to 2740 in 2009. COMPANY COMPANY DSD RETAILERS CONSUMERS
  • 28. AREAS OF DIRECT OPERATIONS IN RANCHI AREA ROUTE ID HARMOO RX 9002 HINOO RX9003 HATIA RX9004 UPPER BAZZAR RX9005 KANKE RX9006 MURI RX9007 ASHOK NAGAR RX9008 DORANDA RX9009 DHURWA RX9010 HIGHWAY RX9011 MAINROAD1 RX9012 MAINROAD2 RX9013 STATION ROAD RX9014 AZAD BASTI RX9015 PURLIYA ROAD RX9016 KATATOLI RX9017 KOKAR RX9018 CIRCULAR ROAD RX9019 HINDPIDI RX9020 CHUTIA RX9021 KHADGADA RX9022 RETAILER CONSUMER
  • 29. BARIATU RX9025 KACHERI RX9026 NAMKUM RX9027 RESEARCH METHODOLOGY The topic “COKE AND PEPSI LEARN TO COMPETE IN INDIA” for the project work was suggested to me by the RTM of Hindustan Coca-Cola Beverage private limited. He asked me to conduct a survey in areas where the coca-cola market is weak as well as high and to make a study of its major competitor “PEPSI”.. Armed with the ideas provided to me by the RTM and the Area Sales Manager, I went ahead for the research. In order to collect samples during my survey I planned to take recourse to the Random Sampling because as the name suggests, in this method of sampling any unit of population can be selected at random. In my research, the retailers in Ranchi comprise the universe. Therefore, they are the ones who constitute as the main source of information to me. SAMPLE SIZE FOR SURVEY The 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.
  • 30. 3. This study also helps to get a clear idea about where the co. is lagging behind & where it is ahead of its competitors. METHOD OF DATA COLLECTION There are different methods of data collection. They are:-observation, experimentation, uncontrolled experimentation, controlled experimentation, survey and focus group. Here the data are collected by market survey. METHODOLOGY The data can be dichotomized into two types: primary data, secondary. In this study the data collected was mainly primary data. The respondents were from the area of Ranchi. The secondary data were obtained 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: 200 INSTRUMENT FOR DATA COLLLECTION: The primary data collected through the survey method for the purpose of the study. The survey was done 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 like company journals, company websites, publications & records. RESEARCH DESIGN
  • 31. The design appropriate for this research is Exploratory Research Design. Exploratory research studies are also termed as formulative research studies. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of a problem under study in built flexibility in research design is needed because the research problem, broadly defined initially as transformed in to one with more precise meaning in explanatory studies, which fact may necessitate changes in the research procedure for gathering relevant data. The survey was conducted in HYDERABAD, by asking from dealers.  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.
  • 32. DATA ANALYSIS AND INTERPRETATION SURVEY OF OUTLETS IN Hyderabad 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’s unsatisfaction, loop hole in the distribution system and the improvement to be needed for high satisfaction 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
  • 33. AZAD BASTI MARKET OBSERVATIONS: DEALER’S RESPONSE A. 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.
  • 34. FINDINGS AND ANALYSIS 1. Type of outlet visited. 2. Which brand of soft drinks you deal in? General Store Pan Store Sweet shop Canteen 0 10 20 30 40 50 60 70 80 90 Outlet Visited Outlet Visited 0 10 20 30 40 50 60 70 80 90 100 Coca Cola Pepsi Both Others Series 1 Series 1
  • 35. 3. Which company’s signage you have in your outlet? 4 Which company’s visi- cooler you have in your outlet ? 0 10 20 30 40 50 60 70 80 Coca cola Pepsi Both No signage Series 1 Series 1 0 20 40 60 80 100 120 coca cola pepsi Both Mixed Series 1 Series 1
  • 36. 5. Which company have better distribution network? 6. Which is most preferred size of the bottle by customer? 0 20 40 60 80 100 120 coco cola pepsi both Series 1 Series 1 0 10 20 30 40 50 60 200ml 300ml 500ml 1000ml 1500ml 2000ml Series 1 Series 1
  • 37. 7. Do the customer know the difference between branded and unbranded soft drinks? 8. What type of cold drinks you are selling? 0 20 40 60 80 100 120 140 160 Yes No Series 1 Series 1 0 10 20 30 40 50 60 70 80 90 Branded Unbranded Both Series 1 Series 1
  • 38. 9. Major age group of customers who buy soft drinks? 10. What do you feel about the price of branded soft drinks ? 0 10 20 30 40 50 60 Category 1 0-15 15- 25 25-35 35-45 45-55 Series 1 Series 1 0 20 40 60 80 100 120 yes no no reply Series 1 Series 1
  • 39. 11 Do you feel a price reduction will increase the sales of branded soft drinks ? 12. Do you think that aggressive advertising further increase the sales volume of Pepsi? 0 20 40 60 80 100 120 140 160 180 200 yes no Series 1 Series 1 0 20 40 60 80 100 120 New schemes Refrigeration system Series 1 Series 1
  • 40. 13. What are your suggestion to improve the sale ? CONCLUSIONS: 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. 0 10 20 30 40 50 60 70 80 Series 1 Series 1
  • 41. 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
  • 42. 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%.
  • 43. QUESTIONNAIRE Q1. Type of outlet (a) General store (b) Pan shop (C) Sweet shop (d) Canteen Q2. 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
  • 44. Q6. Which is most preferred size of the bottle by customer? 200ml 300ml 500ml 1000ml 1500ml 2000ml Q7. Do the customer know the difference between branded 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
  • 45. Q11. Do you feel a price reduction will increase the sales of branded soft drinks ? (a) Yes (b) No Q12. Which medium affect the sales most? (a)Television (b) Magazines/News papers (c) Display (d) Wall paintings/Hoardings Q13. Do you think that aggressive advertising further increase the sales volume of Pepsi? (a) Yes (b) No (c) No reply Q14. What kind of promotional activities affect sale mostly ? (a)Free bottle scheme (b) Prize (c) Discount carats (d) Other Q15. What are your suggestion to improve the sale ? (a) New schemes (b) Refrigeration system (c) Advertisement (d) Reduction in deposits
  • 46. (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.