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A project report on analyzing and enhancing market opportunities of coca cola

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A project report on analyzing and enhancing market opportunities of coca cola

A project report on analyzing and enhancing market opportunities of coca cola

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  • 1. A Project Report On<br />“ANALYZING AND ENHANCING MARKET OPPORTUNITIES OF COCA COLA IN GHAZIABAD.”<br />153225585090<br />2008-10<br />Under the Supervision of: Submitted By:<br /> <br /> <br />JAIPURIA INSTITUTE OF MANAGEMENTNOIDA<br />ACKNOWLEDGEMENT<br />The Research report will be incomplete without acknowledge giving my sincere, gratitude to all persons who have helped me in the preparation of this report. 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. (HCCBPL) for granting me the permission to work with the esteem organization.<br />I am also thankful to …………………………….(GSM) and then to ……………………. (ASM) and then to ……………………. (SE) of Coca cola Hindustan Beverage Ltd. They guided and helped me in all possible ways they could, at every stage of the report.<br />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.<br />I thank my college Jaipuria Institute of Management for having given me this opportunity to put to practice, the theoretical knowledge that I imparted from the program. I thank the internship mentor, ……………for having guided and supported me through the course of the internship. I take this opportunity to thank my parents and friends who have been with me and offered emotional strength and moral support.<br />Last but not the least, I am thankful to all Retailers who gave us their precious time and support to fulfill this task, without their co-operation the study would not have seen the light of the day& complete.<br /> <br /> <br /> <br />PREFACE<br />In summer the consumption of soft drinks is more due to hot weather in this time chilled weather is needed everywhere and everybody irrespective of age difference. In the market peoples not only need water, but they want some taste too. Here comes the need of soft drinks: it has become an essential part of market as people like it in addition to the bottles, now days packages of soft drinks i.e. Tin cans, Pet packs of i.e. Litters canisters and dispensers are introduced to enhance the impact in sales.<br />The PGDM curriculum is designed in such a way that student can grasp maximum knowledge and can get practical exposure to the corporate world in minimum possible time. Business schools of today realize the importance of practical knowledge over the theoretical base.<br />The research report is necessary for the partial fulfillment of PGDM curriculum and it provides an opportunity to the student in understanding the industry with special emphasis on the development of skills in analyzing and interpreting practical problems through the application of management theories and techniques. It is a new platform of learning through practical experience, which incorporates survey and comparative analysis. It gives the learner an opportunity to relate the theory with the practice, to test the validity and applicability of his classroom learning against real life business situations.<br />EXECUTIVE SUMMARY<br />Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a Pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.<br />Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. 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 Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company.<br />The main objective of this report attempts to reveal the secrets and tools which would be helpful in horizontal market expansion for the whole coca cola product range by first analyzing and then enhancing the market of Coca Cola. The study was divided into two parts. First was to analyze the existing market, try to find their problems and reasons for doing business with company. In second part untouched market was explored and their reasons for not doing business with company where studied. Thus report will provide an opportunity to know existing and new retailers psychographic needs, it may provide an opportunity to the Coca-Cola to frame a good future plan to satisfy maximum needs, taste preferences of the retailers and established its guiding role in the market of Ghaziabad & in marketing plan for different areas.<br />TABLE OF CONTENTS<br />
    • S.NO.PARTICULARSP. NO.1.INTRODUCTIONA Brief Insight - The FMCG Industry in IndiaA Brief Insight – Beverage Industry in India1352.THE COCA COLA COMPANY2.1 History2.2 Manifesto for Growth 2.2.1 Values 2.2.2 Mission 2.2.3 Vision for Sustainable Growth2.3 Soft Drink Market in India9911111212133.HINDUSTAN COCA COLA BEVERAGES PVT. LTD. (HCCBPL)3.1 About the Company3.2 Manifesto for Growth 3.2.1 Values 3.2.2 Vision for Suitable Growth 3.2.3 Mission 3.2.4 Quality Policy3.3 SWOT Analysis of HCCBPL 3.3.1 Strengths 3.3.2 Weaknesses 3.3.3 Opportunities 3.3.4 Threats1616191920202121212223244.PRODUCTS26
    • 2. 5.ABOUT PROJECT5.1 Data Collection5.2 Types of Expansion 5.2.1 Vertical Expansion 5.2.2 Horizontal Expansion5.3 Horizontal Expansion 5.3.1 Reasons for Horizontal Expansion. 5.3.2 Benefits of Horizontal Expansion 5.3.3 Advantages of Horizontal Expansion over Vertical Expansion5.4 Seven Criteria’s5.5 Segmentation Model5.6 Procedure for Opening a New Outlet 5.6.1 Analysing the outlet5.7 Steps for Targeting the New Retailers5.8 Paraphernalia Used5.9 Intangible Element of Project 5.9.1 R.E.D Survey34353535363637373740424344454849496.INTRODUCTION TO STUDY6.1 Purpose of the Study6.2 Objective of the Study6.3 Work Assigned6.4 Objective of the Work 6.4.1 Primary Objective 6.4.2 Secondary Objective505050505151517.RESEARCH METHODOLOGY528.FINDINGS & ANALYSIS8.1 Questionnaire for Existing Retailers8.2 Questionnaire for New Retailers8.3 Other General Findings555567749.LIMITATIONS, SUGGESTIONS & CONCLUSION9.1 Limitations9.2 Suggestions9.3 Conclusion7878798210.SIGNIFICANCE OF STUDY10.1 To the Researcher10.2 To the Company10.3 To Others8383838311.ACHIEVEMENTS IN TERMS OF SALES11.1 Models & Working Formats11.2 The 3 A’s Strategy11.3 Working Methodology 11.3.1 Route visit11.4 Focus on Availability of Products in Outlets11.5 Focus on Visibility of Coke Products in Outlets11.6 Achievements11.7 Some Important Points848485868686878792BIBLIOGRAPHY95APPENDIXMISCELLANEOUS
    LIST OF FIGURESFig. No.ParticularsPage No.Chapter 11Market of Drinks in India22Soda Companies Market Share & Change in Volume, World Wide33Beverage Industry in India64Market Share of Soft Drinks in India7Chapter 25Vision for Suitable Growth13Chapter 36Location of COBO, FOBO & Contract Packaging in India187Chain Followed from Manufacturer to Retailer25Chapter 58Opportunity to Open New Outlets359Impact of New Retailers on Business 3710Impact of New Retailers on Distributors38Chapter 811Location of Existing Outlets5512Type of Existing Outlets5613Depth of Problems in Different Areas6614Location of New Outlets6815Type of New Outlets6816Exclusive Outlets7617Different Type of Outlets Selling Different Brands773<br />LIST OF TABLESTABLE No.ParticularsPage No.Chapter 8CROSS TABULATION1.Location & Sale582.Type of Outlet & Reasons for Doing Business with Coke603.Location & Problems Faced While Doing Business634.Type of Outlet & Reasons for Not Doing Business695.Location &Life span of business72<br />CHAPTER - 1<br />INTRODUCTION<br />Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.”<br />The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any <br />other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, <br />Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day.<br />The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks.<br /> Figure 1: Market of drinks in India<br />(Source: - Beverages Marketing Corporation)<br /> Figure 2: Soda companies market share & change in volume, worldwide (Source: - Beverage Digest)<br />1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA<br />Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products.<br />The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market.<br />By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. <br />These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector.<br />HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones.<br />Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner.<br />Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs.<br />1.2: A BRIEF INSIGHT: BEVERAGE INDUSTRY IN INDIA<br />In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.<br />CarbonatedNon-CarbonatedColaNon-ColaNon-ColaBeveragesAlcoholicNon-Alcoholic<br />FIGURE 3: Beverage industry in India<br />Figure 4: Market shares (%) of soft drinks in India<br />(Source: - www. Google.com – Images)<br />The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows:<br />Alcoholic, non-alcoholic and sports beverages<br />Natural and Synthetic beverages<br />In-home consumption and out of home on premises consumption.<br />Age wise segmentation i.e. beverages for kids, for adults and for senior citizens<br />Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.<br />If the behavioural patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable.<br />Four strong strategic elements to increase consumption of the products of the beverage industry in India are:<br />The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.<br />The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.<br />Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.<br />Communication should be relevant and trendy so that consumers <br />The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.<br />CHAPTER - 2<br />THE COCA-COLA COMPANY<br />2.1: HISTORY<br />T<br />his story begins in Atlanta, Georgia on May 8, 1886, when a pharmacist called Dr. John Smith Pemberton first mixed Coca-Cola in his back yard. This formula, which was made from carbonated water, cane sugar syrup, caffeine, extracts of kola nuts and cola leaves, was brought to the nearby Jacobs’ Pharmacy where it made its Debut as a soft drink the same day, selling for only 5 cent. His bookkeeper named this drink “Coca-Cola” after the first two ingredients and the same distinctive script he wrote it in is the same logo they use to this day.<br />He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.<br />Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested that “the two Cs would look well in advertising.” The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment.<br />By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive colour associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.<br />The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Company’s <br />incorporation, report to share owners that “Coca-Cola is now drunk in every state and territory in the United States.”<br />As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.<br />2.2: MANIFESTO FOR GROWTH<br />2.2.1: Values:<br />Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being:<br />Leadership: The courage to shape a better future.<br />Passion: Committed in heart and mind.<br />Integrity: Be real.<br />Accountability: If it is to be, it’s up to me.<br />Collaboration: Leverage collective genius.<br />Innovation: Seek, imagine, create and delight.<br />Quality: What we do, we do well.<br />2.2.2: Mission<br />To refresh the world, in body, mind, and spirit.<br />To inspire moments of optimism, through our brands our actions.<br />To create value and make a difference, everywhere we engage.<br />2.2.3: Vision for sustainable growth<br />Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.<br />People: Being a great place to work where people are inspired to be the best they can be.<br />Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy people’s desires and needs.<br />Partners: Nurturing a winning network of partners and building mutual loyalty.<br />Planet: Being a responsible global citizen that makes a difference.<br />Figure 5: Vision for sustainable growth<br />(Source: - HCCBPL).<br />2.3: SOFT DRINK MARKET IN INDIA<br />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 in the scorching heat and the climate of India, which istogether 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’s Schweppes, Campa Cola 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).<br />Soft drink consists of a flavour base, sweetener and carbonated water. In general terms non-alcoholic drinks are considered as soft drinks this name soft drink was given by Americans as against hard which is mainly alcoholic.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 flavours and retail channel refers to business location that tells or serves the products directly to consumers.<br />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 central government led the exit of coca-cola which preferred to quit rather diluting its equity to 40% in compliance with the Foreign Exchange Regulation Act (FERA). The first national cola drink to pop up was double seven. In the meantime, Pure Drinks, Delhi on coke’s exit, switched over to Campa Cola.<br />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 Dowells launched Thrill, and by the late eighties there was Double Cola, which entered in India market, as a NRO-run outfit with its plant in Nasik (Maharashtra), in 1978 Parle, Indian soft drinks market (share 33%) with its gold spot and Limca brands. Later Thums Up also started Thums Up. 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 crores and grew at the rate 20%.<br />Coca-Cola entered Indian by buying up to 69% of the 1,800 crores soft drink market (i.e. 5 Parle Export brands of Thums Up’s, 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.<br />One of the strongest weapons in Coke armoury 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.<br />CHAPTER - 3<br />HINDUSTAN COCA-COLA BEVERAGESPRIVATE LIMITED (HCCBPL)<br />3.1: ABOUT THE COMPANY<br />Every person who drinks a Coca-Cola enjoys a moment of refreshment and shares an experience that millions of others have savoured. All of those individual experiences combined have created a worldwide phenomenon – a truly global brand. On the distribution front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian cities, ensure availability of Coke brands in every nook and corner of the country. The company-owned Bottling arm of the Indian Operations, Hindustan Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and distribution of beverages across the country.<br />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 Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parle’s plants and a well set bottling network, an excellent base for rapid introduction of the Company’s International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Gold-Spot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company.<br />In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favour of resident shareholders by June 2002.<br />Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.<br />“Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life ho to Aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of India’s new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide.<br />Figure 6: Locations of COBO, FOBO & Contract Packaging in India. (Source: - www. Google.com – Images)<br />3.2: MANIFESTO FOR GROWTH<br />3.2.1: Values<br />The values that the employees in the Company are expected to keep up to and work by regularly are as follows:<br />Leadership: To take an initiative and lead, motivate and drive the team with energy and zeal, to deliver outstanding results.<br />Innovation: To continuously strive for progress and reach the next level of excellence in everything we do.<br />Passion: To be deeply committed and display drive and energy in the quest to deliver outstanding performance.<br />Teamwork: To unite for greater strength and work collectively as a group towards the achievement of common goals.<br />Ownership: To think and act like owners at all levels; to have decisions taken at the lowest appropriate level.<br />Accountability: To be individually and transparently accountable to our colleagues for delivering agreed targets and goals.<br />3.2.2: Vision for sustainable growth<br />To provide exceptional strategic leadership in the Coca-Cola India System-resulting in consumer and customer preference and loyalty, through Coca-Cola’s commitment to them, and in a highly profitable Coca-Cola Corporate branded beverages system.<br />3.2.3: Mission<br />To create consumer products, services and communications, customer service and bottling system strategies, processes and tools in order to create competitive advantage and deliver superior value to;<br />Consumers as a superior beverage experience.<br />Consumers as an opportunity to grow profits through the use of finished drinks.<br />Bottlers as an opportunity to grow profits in volumes.<br />Bottlers as a trademark enhancement and positive economic value added.<br />Suppliers as an opportunity to make reasonable profits when creating real value-added in an environment of system-wide team work, flexible business system and continuous improvement.<br />Indian society in the form of a contribution to economic and social development.<br />3.2.4: Quality policy<br />“To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processes every time.”<br />3.3: SWOT ANALYSIS OF HCCBPL<br />3.3.1: Strengths<br />Distribution network: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.<br />Strong brands: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated that the Coca-Cola brand was worth $70.45billion.<br />Low cost of operations: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.<br />3.3.2: Weaknesses<br />Low export levels: The brands produced by the company are brands produced worldwide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including Lindane, DDT, Malathion and Chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.<br />Small scale sector reservations limit ability to invest and achieve economies of scale: The Company’s operations are carried out on a small scale and due to Government restrictions and ‘red-tapism’, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.<br />3.3.3: Opportunities<br />Large domestic markets: The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market.<br />Export potential: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.<br />Higher income among people: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.<br />3.3.4: Threats<br />Imports: As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.<br />Tax and regulatory sector: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems.<br />Slowdown in rural demand: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the company’s products.<br />Manufacturing Plant, DASNASales and DistributionOperationsDistributorsOutletsOutletsIndirect DistributionDirect Distribution<br />Figure 7: Chain followed from manufacture to retailer<br />CHAPTER - 4<br />PRODUCTS<br />388620028575The 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:<br />BRANDS OF INDIA:-<br />The world's favourite drink.Theworld's most valuable brand.The most recognizable word across the world after OK.Coca-Cola has a truly remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic beverages in the world. In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation. Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had entered the youth's vocabulary. In 2002, Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it India's favourite soft-drink brand. In 2003, Coke was available for just Rs. 5 across the country and this pricing initiative togetherwith improved distribution ensured that all brands in the portfolio grew leaps and bounds. <br />GlassPETCanFountain200 ml, 300 ml, 500 ml, 1000 ml500 ml, 1.5 L, 2 L, 2.25 L,500 ml + 100 ml330 mlVarious Sizes<br />Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.<br />GlassPETCanFountain200 ml, 300 ml, 500 ml, 1000 ml500 ml, 1.5 L, 2 L, 2.25 L,500 ml + 100 ml330 mlVarious Sizes<br />Lime n' lemoni Limca, the drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for1383030244475over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country.The success formula?The sharp fizz and lemoni bite combined with the single minded positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca and walk away a new person.<br />GlassPETCanFountain200 ml, 300 ml, 500 ml, 1000 ml500 ml, 1.5 L, 2 L, 2.25 L,500 ml + 100 ml330 mlVarious Sizes<br />Worldwide Sprite is ranked as the No. 4 soft drink & is sold in more than 190 countries In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood for a straight forward and honest attitude. Its clear crisp refreshing taste encourages the today's youth to trust their instincts, influence them to be true to who they are and to obey their thirst<br />GlassPETCanFountain200 ml, 300 ml,500 ml, 1.5 L, 2 L, 2.25 L,500 ml + 100 ml330 mlVarious Sizes<br />327660010795Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one of the favorite drinks since 1940's.<br />Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst".Perceived as a fun youth brand, Fanta stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends.<br />GlassPETCanFountain200 ml, 300 ml,500 ml, 1.5 L, 2 L, 2.25 L,500 ml + 100 ml330 mlVarious Sizes<br />1600200427990<br />Maazawas launched in 1976. There was a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the fruit drink category. Over the years, brand Maaza has become synonymous with Mango. This has been the result of such successful campaigns like "Taaza Mango,Maaza Mango" and "Botal mein Aam, Maaza hain Naam". Consumers regard Maaza as wholesome, natural, fun drink which delivers the real experience of fruit. The current advertising of Maaza positions it as an enabler of fun friendship moments between moms and kids as moms trust the brand and the kids love its taste. The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza"<br />GlassTetra packPETFountain200 ml,250 ml125 ml, 200 ml1000 mlVarious Sizes<br />3352800249555<br />Water, a thirst quencher thatrefreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself.<br />The importance of water can never be understated. Particularly in a nation such as India where water governs the lives of the millions, be it as part of everyday rituals or as the monsoon which gives life to the sub-continent.Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure.<br />Kinley water comes with the assurance of safety from the Coca-Cola Company. That is why we introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our product. That's why we go through rigorous testing procedures at each and every location where Kinley is produced. Because we believe that right to pure, safe drinking water is fundamental.<br />3352800240030<br />In the company's journey towards the vision 'leading the beverage revolution in India', now even Garam matlab Coca-Cola. A hot new launch from Coca-Cola India. Georgia, quality tea and coffee served from state of the art vending machines is positioned to tap into the nation’s biggest beverage category. Georgia, which promises a great tasting, consistent, hygienic and affordable cuppa is available in a range of 7 sizzling flavours, Adrak, Elaichi, Masala and Plain teaCappuccino, Mochaccino and Regular coffee. Georgia is currently in the roll out stage after a successful launch in Delhi & Kolkata. Georgia aims to become the consumers preferred choice of hot beverage when he is on the go; the brand is well on course to achieving its vision. While Georgia is a mass market offering, Georgia Gold is the premium brand which caters to the connoisseur. Made from freshly roasted and ground coffee beans, Georgia Gold is delicious tasting aroma with the tantalizing aroma of fresh coffee. Currently available exclusively at McDonald’s outlets across the country Georgia Gold has driven coffee sales through the roof. The success of hot beverages from Georgia Gold has resulted in extension into the cold category, with the introduction of Ice Tea and Cold Coffee<br />32766000MINUTE MAID - A 62 year success story.The history of the Minute Maid brand goes as far back as 1945 when the Florida Foods Corporation developed orange juice powder. The company developed a process that eliminated 80 percent of the water in orange juice, forming a frozen concentrates that when reconstituted created orange juice. They branded it Minute Maid, a name connoting the convenience and the ease of preparation (In a minute). Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. Minute Maid- One of the world's largest juice and juice drink brandsover the years, through innovations and unmatched consumer experience provided in over 60 countries, Minute Maid brand has clearly become one of the world's largest juice and juice drink brands. The launch of Minute Maid Pulpy Orange in India (starting with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink category.<br />Available in two PET pack sizes  400 ml and 1 litreand 1.25 litres.<br />CHAPTER - 5<br />ABOUT PROJECT<br />The work assigned was to analyze and enhance the market opportunities for Coca Cola in Ghaziabad, by creating awareness to retailers about the brand value, profit ratio and to find out the factors which are creating impediment in its expansion.<br />Thus project was divided into two parts:-<br />First Part:-<br />
    • Analyze the needs and wants of existing retailers (customers).
    • 3. Find out the problems faced by them while doing business with Coke.
    • 4. 36There reasons of doing business with Coke.
    • 5. For this survey on 350 existing outlets was done.
    Second Part:-<br />
    • Find out the reasons for not doing business with Coke from new retailers (customers).
    • 6. For this survey on 250 new outlets was done.
    While doing second part of the survey few new outlets were opened, OYA refrigerators were sold & Visi - Coolers were installed.<br />5.1: DATA COLLECTION:-<br />Data was collected from different locations of Ghaziabad as:- <br />Govindpuram<br />Kavi Nagar<br />Rakesh Marg<br />Ghantaghar<br />Dadri Road<br />Gandhi Nagar<br />Mali wada<br />Shastri Nagar<br />5.2: TYPES OF EXPANSION<br />Expansion can be done both vertically & horizontally and for this different questionnaires were prepared for both existing and new retailers.<br />
    • 5.2.1: Vertically expansion
    It means increasing the existing outlets capacity of sales. There are following techniques used in vertical expansion:<br />RED ( Right Execution Daily)<br />PJP (Pre Journey Planner)<br />Pre Sell<br />5.2.2: Horizontal expansion<br />
    • It means opening new outlets. It is done to increase the market share and to increase the visibility of product in the market which will ultimately lead to higher sales volume and larger market share.
    5.3: HORIZONTAL EXPANSION<br />5.3.1: Reasons for horizontal expansion<br />Figure 8: Opportunity to oen new outlets (India).<br /> (Sourse:- AC Neilsen –Retail audit & FMCG track)<br />
    • Above data shows that Coke is far behind from its competitors in case of market coverage thus huge potential for expansion.
    5.3.2: Benefits of horizontal expansion<br />Improves profitability of distributors<br />Helps improve route productivity<br />Incremental revenue for the business<br />Helps in distributing the market demand<br />Increase market visibility<br />5.3.3: Advantage of horizontal expansion over vertical expansion<br />Both expansion techniques are meant for increasing sales volumes. But in horizontal expansion company can earn more profits by spending less. Let’s see the profit story of horizontal expansion. <br />Figure 9: Impact of new outlets on business (Source: HCCBPL, Monthly Circular, June).<br /> Figure 10: Impact of new outlets on distributors<br /> (Source: HCCBPL, Monthly Circular, June).<br />Above tables clearly indicate the importance of opening new outlets. By doing vertical expansion only growth in profit was not very effective but because of opening just 200 new outlets sales increased to a large extent. Total profit margin and return on investment also increased.<br />5.4: SEVEN CRITERIAS TO FORM A NEW OUTLET<br />1. Outlet already owns electric chilling equipment of any type–<br />This is necessary to open an outlet which much has its own chilling equipment because initially company cannot provide a new cooler. So, it’s preferable that he starts his business with his own chilling equipment and as business grows company can provide him cooler. Company also provides OYArefrigerators at reduced priced from market.<br /> (For rural areas Ice Box, Outlets location and daily sales is kept in mind while giving preference to SGA).<br />2. Outlet is already selling Pepsi products<br />This criterion ensures that outlet is suitable for the business in soft drinks, it has demand for soft drinks and can also sell Coke products, the only thing required is to solve the problems and finalize the agreement.<br />3. Outlet is on the main road or has 2 adjacent roads<br />The shop must be easily reachable for our salesman, else it would affect the economies of scale and it will not be a profitable business to go on with.<br />4. There are no other outlets selling Soft Drinks within 150 steps in any direction from that outlet<br />This is done to create particular population cluster at one point only to prevent the local competition among Coke outlets.<br />5. Outlet is listed as part of the list of non-dealers submitted by Nielsen<br />
    • AC NIELSEN has provides us a list of potential outlets in Ghaziabad, if our target outlet is in the list it must be approached without considering any other criteria.
    6. It is an E & D outlet with 5 tables<br />There are 2 types of E&D outlets,<br />E &D Type 1 & 2<br />E&D 1- Does not have a place to sit.<br />E&D 2- The outlet should have a place to sit.<br />Criteria no. 6 is valid only for E&D 1<br />7. It is an outlet stocking branded FMCG products.<br />(Products in the range of Rs. 20 and above) <br />This is very important criteria to ensure that the outlet keeps branded product and can spend some money to purchase a branded product. The targeted outlet must meet at least 2 criteria out of 7 mentioned above; if the outlet does not meet above criterion it will not be a profitable outlet.<br />5.5: SEGMENTATION MODELCoke’s Markets can be Segmented along 3 Lines- Outlet Volume,Locality Income & Channel Cluster.<br />xGrocery: Selling household items etc.E & D Type 1: Does not have a place to sit.E & D Type 2: The outlet should have a place to sit.Convenience: Small stores or shops e.g. STD booths OULLET CLASSIFICATIONKO VPO SLAB(PHY C/S) DIAMOND GOLD SILVER BRONZE>800 500-799 200-499<200OUTLETVOLUMEMEDIUMClassifying Outlets basis Volume Per OutletSimilar grouping of Outlets basis format & shopper ocasionSegmenting Consumers on basis of IncomeCHANNELCLUSTERLOCALITYINCOMELOWHIGHCONVENIENCE GROCERY E & DTYPE 1TYPE 2DIAMONDGOLDSILVERBRONZE<br />
    • This model is followed by the company while segmenting - Type of outlets, volume & their income.
    5.6: PROCEDURE FOR OPENING A NEW OUTLET:-<br />Find a probable or Dry outlet:<br />Dry outlet can be defined as an outlet that used to sell coke before but now it is not activated and reluctant in doing business with coke. He may be a competitor’s outlet.<br />Scrutinize the outlet:<br />In this step I had to find the possibility and suitability of the outlet for keeping the coke products. There are 7 criterion defined and the outlet must meet at least two of them. My job is also to analyze whether selling him coke would be profitable or not. Also the population cluster and footfalls is also analyzed and accordingly deal is finalized.<br />Targeting the outlet:<br />After I have analyzed the outlet, I have to approach the outlet owner. Then I explain him about the product range of my company. Then I tell him about the cost, selling prices and schemes given on the product. I try to convince him that doing business with coke is very profitable and convenient for him and it will add more customers and money to his business i.e. explaining him the profit story.<br />Solving the problems:<br />I also listen to my customer very carefully to his queries, objections and problems and try to solve them with the different solutions provided by the company. Mainly the problem is about SGA (Selling Good Assets) & agreement for it was done by analyzing the outlet.<br />Insertion of the order:<br />If he is convinced I inform the salesman give him the address of new outlet and tell him the stock to be delivered and end successfully.<br />My job was also to look after the sales of the outlet & inform concerning authority if any problem.<br />5.6.1: Analyzing the outlet<br />Once the outlet has met the required criteria we have to target that outlet. Before targeting we have to quickly analyze the population cluster around the outlet. We have to analyze income group of people living around the outlet because these people will be the customer to our retailer. This helps us making an approach to the outlet also we have to determine the density of population; this will determine the footfalls on the outlet. As we know beverage business depends upon the sales volume so footfalls and population cluster determination is very important.<br />This is done very quickly and product range is offered accordingly. For example- in urban area MMPOand Maaza are most selling products, but in rural area small packs (200ml) are more successful.<br />5.7: STEPS FOR TARGETING THE NEW RETAILERS-<br />Before targeting a new outlet (customer), we have to prepare physically and mentally & following sets were followed:-<br />Take Initiative <br />Deal with objections<br />Profit Story<br />Any other quandary<br />
    • Sustain relations
    Take Initiative- We personally contact the retailer. As a representative from Coke we tell about the company, the project range, about the profit margins, offers, schemes etc.<br />
    • Deal with objections- Here retailer puts his objections and we have to tackle them very carefully, some common objections raised are as:-
    1-Your Business is NOT Very money-spinning?<br /> Answer-<br />Our products have Good Margin in the range of 7% - 15%, higher than most of the products you sell.<br />Our products are well known and have a faster rotation which will result in higher earnings for you.<br />We have a wide range of product to offer which will help you cater to larger number of customers.<br />We ensure business round the year by activating your outlet and product promotions.<br />2- The nearby outlet is selling Soft drink. Why should I sell? <br />Answer-<br />
    • Would you not like to make more profits?
    • 7. Our product is usually purchased on impulse and can be bought along with other products you sell.
    • 8. There are products sold in nearby outlet that is available in your outlet as well. So why not soft drinks.
    3-How will you service my outlet? Will I get stocks I want?<br />Answer- <br />We have a trained salesman who services outlets in your area. He will visit your outlet twice in a week.<br />
    • Our products have shelf life so we would take extra care so as not to supply you more stocks.
    Our superior distribution system and processes will ensure you to get the required stocks in time.<br />Profit Story-We explain to the outlet the profit story; we keep in mind that investment should be told on daily basis and profits in long term.<br />Example- Investment of Rs. 910 will add more than Rs. 16,000 to the yearly profit of the retailer if he sells only 2 packs of 2lts soft drink (9*2+2 free) daily. (As C.P is Rs. 455 & S.P is Rs. 495 for 2 lt. pack so, profit is Rs. 40 on 1 pack so, on 2 it will be Rs, 80 Per day i.e. Rs. 2,400 /month and for peek season (3 months- April, May & June in which sale is suppose to be 50% of estimated yearly sales) the profit will be Rs. 2400*3= Rs. 7,200 & Rs. 14,400 for whole year (Rs. 7,200 for next 9 months.) Substrate electricity bill (Rs. 8 per unit, approx daily Rs. 16 so yearly 16*365 = Rs. 5,840.<br />Rs. 14,400 (Profit) – Rs. 5,840 (Electricity bill) + Rs. 7,920 (Discount as free 2 600ml bottles with 2 packs, so profit = Rs. 44 per day, Rs 1,320 per month, for peek season Rs. 3960 (Rs. 1320*3) & for whole year (Rs. 3,960 + Rs. 3,960 (for next 9 months)) = Rs. 7,920) = Rs. 16,480<br />This amount of profit is on only 2 2lt packs & it will surely increase if he sells complete product range.<br />Any other quandary- If the retailers are having any problem we provide them with best optimal solution.<br />Example- If he doesn’t have display item we will provide him with display racks, hangers, wall paintings etc.<br />Sustain relations- We assure him the good supply of stock and good service quality that will be provided by the company. We take his contact no. and address for delivery of goods and for further references.<br />5.8: PARAPHERNALIA USED:<br />1. Profit story (P 46)<br />2. The Sales presenter (Appendix 3).<br />It is the most important tool, as it contains all the information related to different models, activation standards, shelf order standards, activation standards, brand order, cooler specifications, energy management system & profit stories.<br />3. Schemes & discounts.<br />4. Display coolers (VISI-COOLER).<br />5. Point of sale material (POSM).<br />6. Refrigerators (OYA refrigerators at discounted rate, thus becomes retailer’s property, OYA – Own Your Assets).<br />7. Display tools (hangers, racks, pole header, posters, etc, (In Appendix 3)<br />8. Ice box<br />9. For some retailers or areas before approaching we have to be well prepared & tackle their problems wisely.<br />10. Follow up- It plays a very important role of sales promotion as we observe in the market that some retailers were confused, and they needed time to decide, it’s a responsibility to follow them up properly. We approach them again and again and solve their problem each time. <br />11. Questionnaires (Appendix 1).<br />12. Tracker for new & existing outlets (Appendix 2).<br />5.9: INTANGIBLE ELEMENT<br />In this element we make sure the availability of the product to the retailer, to do this we have to inform the respective salesman of that particular area about the outlets location, and thus stock required. I also make sure that the product must be delivered on time at the outlet.<br />To increase sales on the existing outlet or new outlets we have to adopt vertical expansion strategy (VMS), IN VMS there are 3 tools used,<br />
    • Pre sell- By this demand of the stock by a particular retailer is calculated and required stock is provided at the outlet, within time.
    PJP (PRE JOURNEY PLANNER) –We make a time schedule for approaching the outlets for delivering the product.<br />R.E.D- Right Execution Daily is the survey method that company started earlier. For the survey of R.E.D., Company had hired the people from A.C. NIELSON one of the best survey company. This survey gets done once or twice a month. R.E.D is the set of norms divided into outlet wise.<br />5.9.1: About the R.E.D survey<br />The survey has being conducted to check the cooler management, availability of products, displays etc. in short to cross check ground level work of related employees of Coke.<br />CHAPTER - 6<br />INTRODUCTION TO STUDY<br />6.1: PURPOSE OF THE STUDY<br />The study was carried to gain an insight about the perception of the retailers about the company and to study various factors which directly or indirectly influence the sale of the company.<br />6.2: OBJECTIVES OF THE STUDY<br />To identify the needs and wants of both the retailers and dealers and how well are they being managed by the company’s anxious authorities.<br />To find out various reasons which are creating stumbling block in market expansion.<br />To identify the wakefulness of the brand and the company’s products in the market.<br />To find out the gratification level of customers and problems faced while doing business with Coke.<br />6.3: WORK ASSIGNED<br /> The work assigned was to analyze and enhance the market opportunities for Coca Cola in Ghaziabad, by creating awareness to retailers about the brand value, profit ratio and to find out the factors which are creating hurdle in its expansion.<br />6.4: OBJECTIVES OF THE WORK<br />6.4.1: Primary Objectives:<br />The prime objective was to analyze and enhance the market opportunities for Coca Cola in Ghaziabad.<br />6.4.2: Secondary Objectives:<br />To find the reasons from the retailers for not selling Coke products.<br />To create awareness among new retailers about the company, brand value, product line & profit ratio.<br />
    • To find out the reasons behind their unawareness.
    • 9. To find out new ways to make them aware about different offers.
    To maximize the market share of Coke in Ghaziabad region by making agreements with new dealers & retailers.<br />Ratio of exclusive type of outlets selling different brands.<br />Try to form & convert existing outlets as Coke Monopolists by explaining them the profit story and providing them with special discounts & schemes.<br />To formulate the strategies for targeting the retailers effectively.<br />.<br />CHAPTER - 7<br />RESEARCH METHODOLOGY<br />Type of research:Exploratory and descriptive Research<br />Type of data collected:<br />1. Primary data<br />2. Secondary data<br />Research instrument: Printed Questionnaire was used as the research instrument to collect the required information. <br />Area of surveys: The survey was conducted in different location of Ghaziabad city.<br />Primary data collection methods– <br />General observation method-<br />The retailers were observed to have an insight about the mindset and preference for a particular brand.<br />Personal interaction method- <br />I made interactions with some retailers during market survey, who want to give some extra information other than questionnaire and who were busy and not ready to fill the questionnaire. This was conducted without the help of any questionnaire. The objective was to draw a general understanding about their problems, performance of the distributer, their preferences and other useful information. This technique helped to clear doubts arising due to observation method.<br />Questionnaire method-<br />Questionnaire was divided in two parts. First part was for exiting retailers (customers). The other part was for new retailers. The basic aim of both was to analyze the psychology, need & wants of retailers.<br />2.Secondary data collection methods-<br />Secondary data was collected from various websites – Coca Cola India, Beverage Marketing Corporation, Canadean, Beverage Digest, Myenjoyzone, from company records and data of AC Neilson’s research etc. to have a comprehensive knowledge about the beverage industry and Hindustan Coca Cola Beverages Pvt. Ltd.<br />Time dimension:<br />The time dimension of the study wasapproximately 8 weeks as provided by the institute guidelines during summer training period. <br />Sampling unit:<br />The retailers of Grocery shop, E & D, Convenience shop, Medicine store and Juice corners was selected from different places of Ghaziabad.<br />Sampling size: 550 Outlets.<br />Sampling procedure: As Coke has mainly three types of modules of customers as:-<br />Grocery store, Convenience store & E&D with different grades so sampling size was divided according to area, type of store & VPO of the store. <br />Sampling method: Data were collected by retailer survey. The retailers were directly contacted and interviewed at their retail counter.<br />CHAPTER - 8<br />FINDINGS & ANALYSIS<br />STATUS OF OUTLETS COVERED FOR SAMPLE SIZE <br />Out of sample size of 600 - old retailers were 350 and new were retailers 250.<br />8.1: QUESTIONNAIRE FOR EXISTING RETAILERS<br />Q1. Name of Outlet:<br />Q2. Location:<br />For first part of survey(existing retailers) location was decided according to sales; (data from Hindustan Soft Drinks) area having more sales was given more part of sample size for existing outlets, in order to understand the psychology of existing outlets as shown in Figure 9. <br />Q3. Life span of business: <br />Q4. Total sale per day: <br />Q5. Criteria no.’s (7 criteria’s for a new outlet) of the retailer:<br />Q6. Type of Outlet:<br />Each route under HSD was analyzed with delivery van & complete knowledge about the area was taken from respective market developer of each area. So, distribution of sample size for type of outlets (existing) was according to the route plan of delivery vans as shown in clear in Figure10.<br />As clear from graph of existing outlets the most of the outlets we approached are Grocery stores, E & Outlets and Convenience stores. It makes clear that Coke is having very less business with Medical stores & Juice corners. So, this part of market needs more attention. There is huge potential is this area so must be targeted effectively.<br />E & D existing outlets covered were 71 as 53 were E&D 1 & 18 E&D 2. <br />It signifies that company is lacking in sales for E&D 2.<br />Q7. Deal with beverages, packaged juices and packaged water:<br />
    • Q8. If yes, which brands?
    • 10. Q9. Retailers VPO (Volume Per Outlet)
    Q10. How often do u order? <br />Q11. Reasons for doing business with Coke<br />Q12. Problems faced while doing business with Coke.<br />Cross tabulation of Q2 (Location) & Q4 (Sale per day)<br />Sale per day of Coke (Rs)S. NoLocation & No.of outlets<250251 -500501 -750751 -100010011250>1251Total1.Govindpuram(89)%WithInTheLocation3.3710.1122.4723.6025.8414.611002.Kavi nagar(75)2.661221.3310.6737.3316.011003.Rakesh Marg(62)9.6841.9414.519.6817.746.451004.Ghantaghar(43)27.9051.1616.3004.6401005.Dadri Road(30)1023.3316.30023.3326.671006.Gandhi Nagar (10)40103002001007.Mali wada(19)21.0531.5821.0515.7910.5301008.ShastriNagar(22)36.3631.82022.739.090100Total (% / 100 * No. for each one & them of all)428662417734(appox)350<br />Table 1: Cross tabulation of Location & Sale of Coke. <br />INTERPRETATION<br />Above table shows the relationship between the average sales per day and the location & No. of outlets. In my sample of 350 existing outlets, I found that all the outlets are not evenly distributed in case of sales in a particular area and income level of different retailers of different areas varies a lot. It is also clear that sale per day of Coke in maximum outlets covered in our area is between Rs.1001 – 1250.<br />Reasons for doing business with CokeS.NoType ofOutletsBBSHDGSHPGQAO1.GroceryStores(142)%WithinTypeOfBusiness79.5029.5884.5054.9344.3678.8747.892.MedicalStores(6)16.67033.3316.670003.E & DOutlets(71)85.1424.3248.6574.3229.7378.3866.214.Convenience store(128)7538.2888.2857.8029.6976.5660.935.JuiceCorners(3)33.33000000Total (% / 100 * Total No. for each one, then sum of all).274109271208123268198<br /> Cross tabulation of Q6 (Type of outlet) & Q11 (Reasons for doing business with Coke).<br />Table 2: Cross tabulation of Type of outlets & Reasons for doing business with Coke. <br />B - Brand value, BS – Better scheme, HD – High demand, GS – Good Supply, HP – High profit, GS – Good Service Quality, AO – Any Other<br />INTERPRETATION<br />From this table it is clear that maximum retailers want to do business with Coke because of Brand value, High demand and Good service quality. It also shows that:-<br />The major reasons for keeping Coca Cola products by grocery store are brand value, high demand and good service quality, but less population is satisfied with schemes and discounts provided by company. After analysing market it was found that Pepsi is providing more schemes and discounts as compare to Coke.<br />Sale of products in Medical stores is very less so huge potential is there. Company should make effective schemes to motivate them to sell their products.<br />The major reasons for selling Coke products by E & D outlets are Brand value, Demand and Good supply quality.<br />But after analyzing the E & D outlets E & D type 1 are 53 and type 2 only 21. E & D type 2 outlets were selling more Pepsi as company is providing them selling assets like chairs, tables, racks etc <br />After studying Convenience store market it came to know that this sector was most satisfied and they are enjoying lot of reasons for doing business with Coke.<br />If discussing Juice corners, Coke is having very less reach to them. There is a major gap which needs to be bridged.<br />In Ghaziabad this is sector is almost untapped so, lot of potential to increase business is there.<br />
    • Cross tabulation of Q2 (Location) & Q12 (Problems faced while doing business with Coke).
    Problems faced while doing business with CokeAvg. (Sum of all / No.)S. No.Location of outletsTFSMSADOCIDMAO1.Govindpuram(89)%WithInTheLocation25.847.8714.6062.9248.3170.7830.332.932.Kavi nagar(75)22.67818.6725.3346.6730.6746.672.653.Rakesh Marg (62)40.3227.411.2937.0961.2958.0661.294.794.Ghantaghar(43)44.1818.66.9734.8862.7913.9537.205.085.Dadri Road(30)6.673.33023.3323.337056.676.116.Gandhi Nagar (10)00400504020157.Nehru Marg(19)21.0510.5031.5747.36057.898.868.Shastri Nagar(22)27.27013.6331.8118.18040.906Total (% / 100 * No. fo reach one & them of all)964171133168144155<br />Table 3: Cross tabulation of Location & Problems faces while doing business with Coke<br />INTERPRETATION<br />From the above cross tabulation it is clear that Gandhi Nagar is facing more problems while doing business with Coke followed by Nehru Marg & Dadri <br />It also reveals the fact that most common problem is, complete information & daily schemes. According to retailers delivery men were not providing them the complete information.<br />As distribution is indirect and sometimes there is shortage from plant too, daily in orders becomes trouble for retailers.<br />As clear from the table that most common problem faced by retailers is, complete information & daily schemes. The reasons were that as schemes were changing daily and no written notice comes from concerned authorities they have no choice other than to ask delivery man about the schemes & have to believe on him upto a great extend.<br />Any other problems are as:-<br />Retailers want credit facilities.<br />Mode of payment.<br />Service of Visi coolers.<br />Size of cooler not in proper ratio with sales.<br />Busted Bottle replacement conditions.<br />B.T.C (Below the crown) offers:-<br />Retailers were not satisfied with the B.T.C offers, as retailer has to pay on spot its customers the discount under B.T.C and company was taking lot of time to pay them back and even sometimes they were not accepted by company as they come with short life period. Loss due to delay in collecting and submitting those crowns in company which is the duty of sales man has to be unwillingly bear by the retailer. Problem become terrible when a customer demands a gift mentioned under B.T.C.<br />Policies made for Schemes and discounts:-<br />While doing first part of my survey that was to analyze existing retailers an important fact came to my notice that schemes and discounts were not fixed i.e. they change frequently and sales man were taking undue advantage of this policy.<br />
    • Timing and frequency of van:-
    It was most common problem of retailers of Ghantaghar and Rakesh Marg. The reason was that delivery vans of these two areas were of less capacity and the area is also congested. These factors become problem for the delivery men to reach every retailer in same day.<br />But if we discuses Shastri Nagar and Govindpuram, these two areas are largest areas under Hindustan Soft Drinks (HSD), thus becomes difficult for the delivery van to cover whole area in one day.<br />Moreover problems become worse when demand of soft drinks is high and delivery van becomes empty before covering the whole area. <br />
    • Few retailers did not also like the behaviour of Sales man.
    Depth of problems in different areas.Figure 13<br />8.2: QUESTIONNAIRE FOR NEW RETAILERS<br />Q1. Name of Outlet: <br />Q2. Location: <br />Q3. Life span of business: <br />Q4. Total sale per day: <br />Q5. Criteria no’s<br />Q6. Type of Outlet<br />
    • Q7. Reasons for not doing business with Coke?
    Suggestions, if any:-<br />
    • Findings - Q2 & Q6 - Location & Type of outlet.
    For distribution of the sample size for new location & new outlets it was decided that the area & type of outlets which were giving less sales must be having more part of sample size, in order to smudge the reasons for less sales in particular area and type of outlet.<br />Cross tabulation of Q6 (Type of outlet) & Q7 (Reasons for not doing business with Coke).<br />Reasons for not doing business with CokeS.NoType ofOutletNALDPCPCDSLNAO1.GroceryStore (42)%WithInTypeOfBusiness35.71028.5764.2932.4859.520019.052.MedicalStore (70)44.2977.1442.864038.574.28044.2903.E & DOutlets (52)53.85021.1532.69063.460023.074.Convenience Stores (41)29.27034.1519.51053.670014.635.Juice Corners(45)22.2262.2237.7882.2215.566.6728.8973.3351.11Total (% / 100 * Total No. of outlets, then sum of all).9682841174886136449<br />Table 4: Cross tabulation of Type of outlets & Reasons for not doing business with Coke<br />NA – Never approached by the company, LD – Less Demand, P – Profitability, CP – Company Policies, C – Competition from nearby outlet, DS – Distribution System, L – Lack of space in shop, N – Non Suitability, AO – Any other.<br />INTERPRETATION<br />The reasons for not doing business with Coke were segmented into 9 major factors. The major reason was that retailers were not satisfied with company policies as clear from the table too. A major factor is:-<br />Selling Goods Assets (SGA).<br />It means those assets which help a retailer to sell goods. As refrigerator was an important SGA for a retailer and every retailer was demanding it, so it was becoming impossible for the company to satisfy need of every retailer. <br />
    • Second major factor was company never approached and according to company too, they have only covered 13% FMCG outlets, while FMCG giant HUL has covered 82% FMCG outlets. Thus lot of scope for company to expand business.
    • 11. Thirdly in Ghaziabad distribution is indirect (manufacturer to dealer then to market), and retailers have commented a lot on this factor and effect of this is shown in table too.
    • 12. Fourthly Coke is providing less commission, schemes and discounts as compare to its follower Pepsi and retailers are only interested in profit.
    • 13. Non suitability was another factor as medical stores and juice corners were resisting for doing business with Coke. Company need to make special policies to tab this untouched market.
    • 14. Any other factors include:-
    Providing selling good assets (S.G.A) to retailers at the initial stage was impossible for the company so to satisfy needs of every retailer, company gives the priority level to them, which depends on location, sale of products etc.<br />The major reason for not entering in soft drink sector by grocery store is that they find lot of problem when customers take R.G.B bottles and don’t return them back.<br />Lack of knowledge about the product line.<br />Cross tabulation of Q2 (Location) & Q3 (Life <br />Life span of business (Years)TotalS. NoLocation of outlets<11-3>3-5>5-7>7-9>91.Govindpuram (20)%WithInTheLocation02035300151002.Kavi Nagar(23)4.3430.4317.390001003.Rakesh Marg(25)0123652001004.Ghantaghar (27)03.744.4451.85001005.Dadri Road(39)23.0719.2311.5346.15001006.Gandhi Nagar (33)09.0921.2139.3930.3001007.Nehru Marg (37)2.7040.5445.940010.811008.Shastri Nagar (46)28.2645.6513.04013.040100Total (% / 100 * Total No. of outlets, then sum of all).24616764164(appr250<br />span of business).<br />Table 5: Cross tabulation of Location & Life span of business.<br />INTERPRETATION<br />It is clear that there is huge potential for the company to expand its business as lot of market is intact. Company should first find out the reasons why this market remain untouched and then extend its product line to these untouched retailers by providing better guidance to sales people and by providing lucrative schemes to these retailers.<br />OTHER GENERAL FINDINGS<br />Pricing of products as - 200 ml for Rs. 8 & 600 ml for Rs. 22. It becomes difficult for the retailer to pay back the balance money. <br />Competition with local drink like- Fruit juice, lemon water, sharbat, lassi&tea.<br />Competition with local drink brands like- Jayanti,Lijjet, Prem ji in small areas.<br />Most of retailers are having problem with timing and frequency of van. Dealers should increase the frequency or add more vehicles were required.<br />Impurity of Coke Visi coolers.<br />Brand order is not maintained in coolers.<br />The marketing strategy of Coca-Cola is better than its main competitor.<br />The sales promotion techniques like- discount to monopoly retailers & schemes on products is better than the competitors.<br />The market share of Coke products is higher than the other products.<br />Thums-up is the leading brand of Coca-Cola in different regions.<br />Sale of a product is largely based on display.<br />Company investing more focus now in retailers of rural areas.<br />Aggressive advertising campaigns of Coca-Cola in Ghaziabad helped it lot to increase its sales.<br />I found the proper display of products in racks & in coolers.<br />Sales of Coke are increasingly rapidly in Ghaziabad market where I do work study mostly.<br />Retailers play an important role while selling products as they can divert the desire of a customer by providing same thing of other brands. <br />Found many good outlets that want Visi coolers from coca-cola.<br />Also found dead & useless coolers.<br />Some retailers complain about the service & repair of coolers.<br />Retailers want if company want to change schemes daily delivery people should come with written orders from concerned authorities as they fell they are cheated. <br />The most popular flavour in the market is Thums Up.<br />From the Coca-Cola products Thums Up and the Pepsi products Dew is the highest selling in the market.<br />Coca-cola is the market leader in overall market.<br />In the case of the packaged drinking water Aquafina (Pepsi) is selling more than Kinley (Coke).<br />I have found that a retailer gives more preference to the Coca-Cola products like Thums-Up, Mazaa, Sprite, Limca and Fanta.<br />Minute Maid, pulpy orange is sellable more in Kavi Nagar market.<br />If discussing schemes & discounts, Pepsi is providing more schemes than the Coca-Cola.<br />Sales have increased after locating Visi cooler outside of outlet.<br />The companies’ new concept pre-sale is welcomed in market<br />Few retailers do not get the company’s actual scheme.<br />Products are sold out of assigned areas by distributors in order to increase sales.<br />If retailers complaints regarding discounting & trade scheme then they are not responded properly.<br />There is a communication gap in distribution channel so retailers are not getting advantages of discounting & trade scheme.<br />Exclusive outlets found during survey on existing outlets:<br /> Figure 16: Exclusive outlets<br />Different types of outlets selling different brands <br />Figure 17: Different types of outlets selling different brands <br />CHAPTER - 9<br />LIMITATIONS, SUGGESTIONS &CONCLUSION<br />9.1: LIMITATIONS<br />The study was restricted to 8 regions of Ghaziabad only, with sample size of 550 (350 new outlets & 200 new outlets) so, the interpretations & findings are accordingly to it only.<br />The time period of 2 months was the major limitation.<br />Due to the financial and time constraints the study was not able to include more retailers.<br />To convince the retailer for a proper interviewing process was also difficult.<br />Retailers some time give wrong data.<br />The reluctance on the part of the retailers was also a major setback.<br />The analysis of project was based on observations and interpretation on the basis of sample survey. <br />Another limitation could be lack of knowledge. Being a student I undertake this project as a learning experience. I have made many mistakes and then learned from them. I have tried my best to be as authentic and as accurate as possible in the research analysis taking the help of my project mentor on relevant primary and secondary data. <br />The secondary data was not easily available.<br />Limited knowledge of the researcher in the field of research may lead to interpretation errors.<br />Certain retailers were not comfortable divulging the figures and data, as they want to keep it confidential.<br />The respondents may be based or influence by other factor.<br />A busy schedule of dealers/retailers had made my collation of information very difficult.<br />The projection is purely based on verbal meetings and may be influenced by unprecedented factors.<br />Non-co-operative behaviour of respondent was a big problem in this survey & it is the important fact which should be taken into consideration. <br />The minor concept & techniques at the marketing management are used significant in the project concern.<br />The research was based on primary collection of data so there may be chances of human error and biasness. <br />9.2: SUGGESTIONS<br />The company should measure retailers’ satisfaction regularly.<br />Company can increase the sales if it will consider more on retailers, their suggestions or complaints about service and product so that necessary actions can be taken. <br />Review meeting should be often held so that the working pattern of the sales people can be checked and improved if needed.<br />Company representatives should visit retailers and should make a long-term liaison with retailers so that they can push the product. <br />Since brand value of Coke & expectation of retailers from this brand is high, as the brand image shows their quality is supervene so the company should also take feedback time to time. By this they can maintain their brand loyalty in their customers. <br />Distributers should be convinced to pass the incentives to the retailers so that they are motivated to promote this brand. <br />Increase the number of dealers and retailers as this will help in making high sales volume.<br />Cash discount should be given &it should be competitive and luring. <br />Try to maintain the good image of the monopoly outlets in market by developing the image i.e. by glow boards, sign boards, and point of sale material (P.O.S.M) and by providing good quality services. By this the monopoly of the retailer will continue and it will promote other retailers to adopt Coke monopoly.<br />Company should also attain to small outlets so that there sales can increase.<br />Company should diverse its business in related parts of F.M.C.G sector like-Ice creams, butter & chocolates as company has well established systems in every.<br />Now company should launch new taste of soft drinks like recently launched Minute Maid & also launched new product in another flavours.<br />Company representatives should search new areas for increase in sales.<br />In winter Season company gives more discount & schemes to the retailers so they sell more our product.<br />Company must make aggressive & new strategies to fight with major competitors and local cold drinks brands.<br />Company should promote new dealers.<br />If possible try to give more discounts and schemes were ever required.<br />Supply and distribution system should improve in the areas like Ghantaghar and Rakesh Marg. <br />The company should work out in their complaints regarding to the Visi cooler.<br />Company should give proper schemes to the outlet.<br />The refrigerator purity should be given the priority.<br />Overall services should be improved for getting more sales and to continue to be the market leader.<br />Proper usage of P.O.S.M material.<br />Company should take the problem of “cut off rates seriously”.<br />Coca-Cola should be written on florescent boards displaying location and distances on road.<br />Illegal distribution done by some distributors should be minimized.<br />9.3: CONCLUSION<br />Everything in this world is made to utilize properly but it should be reach at the proper person or to the proper utilized areas. Otherwise the value added to those things became in vein.<br />As there is a proverb:-<br />“Far from eye, far from heart”<br />Thus marketing role plays a very important role in achieving the objectives of a company. Undoubtly, value utility is created by the manufacture of product or service but time and place utilities are created by marketing role. According to Drucker, “Both the market and the distribution channels are often more crucial than the product”.<br />They are primary: the product is secondary. In an economy like that of India, where marginal shortages can lead to disproportion, distortion in prices, a dependable and efficient distribution system is very much essential. The distribution system creates a value added to all most all products.<br />All from the above study not withstanding its restricting efforts Pepsi is still far away with its great competitor like Coke.<br />CHAPTER - 10<br />SIGNIFICANCE OF STUDY<br />10.1: To the researcher:<br />It gave a chance to use the conceptual knowledge in actual environment and prepares the researcher to use the knowledge for better in his future endeavours.<br />It helped in the assessing the factors, which influenced the retailers purchasing and selling products to the consumer from Coca-Cola.<br />The study is essential for the researcher in partial fulfilment of PGDM curriculum. The study gave the researcher the experiences to conduct survey.<br />10.2: To the company:<br />Cold drinks companies are facing a great competition nowadays. Consumers are very much aware and curious about safely products, services, brands and other upcoming products. This study provides an insight to the company that what kind of strategies must be adopted in order to sell more products to consumers and also satisfying them.<br />10.3: To the others:<br />The study gave an insight into various aspects of the Beverage companies, discussed in this study. One can easily come to know about what is happening in Beverage companies in the current environment. How they make attraction of Retailers & consumer mind.<br />CHAPTER - 11<br />ACHIEVEMNTS IN TERMS OF SALES FOR THE COMPANY.<br />In two months of summer training work I receive an exclusive live project work. While doing survey we were told to expand market share of Coke in area under the Hindustan soft Drink (HSD) the leading distributer of coca cola in Ghaziabad. Their previous achieved sales were 3.20 lakh’s cases per year.<br />A current target average sale for them by company is 3.5 lakh’s cases.<br />11.1: MODELS AND WORKING FORMATS<br />These were made clear to us before working on this live project and they are as:-<br />SEGMENTATION MODEL: -Appendix 3<br />PITA MODEL: - Population (number of shoppers or consumers in given universe) + Incidence (% of population that buy our product) + Transaction size (amount in volume bought per transaction) + Avg. Profit (amount of profit in value per transaction).<br />Appendix 3<br />Working format for new and existing outlets.<br />Appendix 2<br />Various questions were asked from both new and existing retailers as mentioned in format.<br />11.2: THE 3A’S STRATEGY WAS FOLLOWED:-<br />This strategy is for increasing numbers of retailers and is based on the belief that consumers will buy our products it they are Available, Affordable and Acceptable. <br />The 3A’s is Coca-Cola underlying strategy for meeting its goal to reach increasing numbers of consumer’s. How does Coke position its limited resources to help meet its best. A brief explanation of these 3A’s is as follow:- <br />Availability:- <br />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. <br />Affordability:- <br />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. <br />Acceptability:- <br />Making Coke brand and its product line the beverage choice for any occasions depends on a variety of strategies to reach the target audience. The common strategies bespoke to effect acceptability were though sponsorships, promotion youth market activities, community programs, and other activates.<br />11.3: WORKING METHODOLOGY<br />11.3.1: Route visit:-<br />We visited the routs with the distributer’s vehicle where the distributer supplies the products.<br />I observed the display norms for outlets in all route & each type of outlet.<br />Every morning I went to one corresponding route & observed all techniques of selling product to retailers by coca-cola salesman & also try to know the mentality of the consumers and retailers.<br />I visited all routes under HSD with delivery man and market developers of respective areas.<br />With this work I take interview retailers ask them about OYA refrigerators, visi coolers & display items.<br />11.4: FOCUS ON AVAILABILITY OF PRODUCTS IN OUTLET.<br />There is big difference between the availability of products in market & outlets. Coca-Cola want that their product displayed in each outlet in market so, it is important that the product first available in market after than it put on outlets.<br />11.5: FOCUS ON VISIBILTY OF COKE PRODUCTS IN OUTLETS.<br />The aim of coca-cola is that its product should be visible for the customers so company gives to retailers racks so many display items.<br />Now days the company is giving Visi coolers to retailers for visible their chilled product in market for more sales.<br />Extra focus was given on monopoly outlets andPre selling concept.<br />11.6: ACHIEVEMENTS.<br />I opened 27 new outlets, installed 4 OYA refrigerators (Own Your Assets) appendix 4, installed 49 Visi coolers (in existing & new outlets) and upgraded refrigerators of7 outlets.<br />STATUS, E = Existing, N = New.* Where cooler size was upgraded.<br />OYA = Own Your Assets (Refrigerators sold by collecting draft).<br />Dadri Road<br />S. No.Name of outletLocationStatusSize1.Baba HotelLohai mandiE92.Shiv Kiryana StoreChaprolaE93.Chawal Mill, CanteenChaprolaE304.Goyal Provisional StoreLohai MandiN95.AnjuLal kuwaN96.AnupuranaLal kuwaE20*7.Sawati StoreLal kuwaE208.Samtal -1Dadri roadE30*9.Lavish General StoreChaprolaE910.Boby General StoreGirdarpurN911.Rakesh KiryanaLal KuwaNOYA<br />Govindpuram<br />S. No.Name of outletLocationStatusSize1.Sachin Book DepoIndergadiE202.Durga ConfectionaryGangapuramE30*3.Muskan ConfictionaryGangapuramN304.Santosh Dept. StoreGangapuramN95.Akg College (Boys Hostel)GovindpuramE96.RainbowHarsavaN207.Singhal SweetsGovindpuramE208.Puja Departmental StoreGovindpuramE209.Koshik MedicoachGovindpuramN910.Laxmi Prov. StoreGovindpuramNOYA<br />Gandhi Nagar<br />S. No.Name of outletLocationStatusSize1.Snow Bell Ice PointGandhi NagarN202.Hind Super Store Gandhi NagarE203.Dolphin StoreMms CollegeE30*4.Raju SweetsTehsilN95.Babar SweetsTehsilE96.Raj Kumar Tea StallTehsilN97.Yadav SweetsTehsilN20<br />Kavi Nagar<br />S. No.Name of outletLocationStatusSize1.GoyalF BlockE92.Archna CosmeticE Block, NagarNigamN93.Rohi Prov. StoreK Block, ShivMandirN94.Setty ElectronicsC BlockN205.Gandhi CommunicationF BlockE96.Bala Ji Cold DrinkHapur RoadN_<br />Mali wada<br />S. No.Name of outletLocationStatusSize1.Kwality StoreMali WadaE202.PavitraMali WadaN93.New Dharm DairyNehru NagarN9<br />Shastri Nagar<br />S. No.Name of outletLocationStatusSize1.Good MorningShastri NagarE92.Ishu ConfectionaryShastri NagarE93.Shubham Prov. StoreMahindra EnclaveE94.Sona Prov. StoreMahindra EnclaveN95.A.K ConfectionaryMain RoadE96.Lalit PanShastri NagarE20*7.ShivamMahindra EnclaveE30*8.Chodhary Dept. StoreShastri NagarE`30*9.Vandhna Prov. StoreMahindra EnclaveNOYA10.Tirupati BalajiMahindra EnclaveNOYA<br />Rakesh marg<br />S. No.Name of outletLocationStatusSize1.Vidatri KendraAshok NagarE92.Kamak Thok VikretaNehru NagarN93.Gova ConfictionaryAshok NagarE94.Chacha DishAshok NagarN95.Gorav Prov. StoreRakesh MargN20<br />Gantagarh<br />S. No.Name of outletLocationStatusSize1.Fardeen ConfectionaryGhantagharE92.Balaji Food PointGhantagharN93.Fine Chicken PointNear Manohar CinemaE204.Prince Beauty CornerGhantagharN9<br />11.6: Some important points<br />Benefits of installing a Visi cooler:-<br />Attractive presentation of products.<br />Consumer’s connivances easier access to the product.<br />Increase in sales and income. When consumer see the product he willing to buy it.<br />It fills the consumers want & willingness.<br />The salespersons easily come to knows that what is in the cooler and what would be the demand of the retailer.<br />Benefits of install a cooler outside the outlet:-<br />Larger income. More consumers will buy beverages from shop.JO DIKTA HAI WHO BIKHTA HAI.<br />Increase in selling space.<br />Outside cooler arouses more consumers’ interest and increase sales through good beverage exposure.<br />Outside outlet, it enlarges the amount of consumers visiting outlets.<br />Easier access to chilled product triggers the consumers purchase impulse.<br />Effective use of shop space.<br />Attractive and convenient form of beverage presentation.<br />Complimentary installation and services.<br />Cooler installation process:-<br />Company set the coolers in a systematic way the way is following.<br />To examine the prime position of Visi cooler outside the outlet.<br />Night cover for the cooler.<br />After establishment of the guarder than cooler set<br />When cooler has been set in guarder than the price communication on cooler tray & set the trays properly in coolers.<br /> When the cooler is properly installed at outlet after it is charged by Coke products follow the brand order.<br />We also set the menu boards with combo on e & d outlets.<br />On small convenience outlets we put their also hanging rack.<br />Set up warm display on outlets.<br />Benefits of setting up menu boards with combo:-<br />Transaction value increases (meal + beverages) and as a result, raises trade turnover and income.<br />Attractive offer for the consumers.<br />Combo visualization shortens consumer’s decision making time.<br />Chosen meals purchase suggestion makes dish preparation and sales planning easier.<br />Seeing “saving” communication consumers perceive combo as promotion and buy them more willingly.<br />Combo price is prominently visible to the consumer.<br />Benefits of setting up hanging rack<br />Easier access to product for consumers.<br />Easier product merchandising.<br />Product in order and visible.<br />Selling space enlargement using small outlet space.<br />Placed on consumers route will trigger impulse so that a lot of consumers will buy beverages in soaps thus increasing transaction value.<br />Benefits of setting up warm display<br />Attractive presentation of products in coolers.<br />Consumer’s connivances easier access to the product.<br />Increase in sales and income. When consumer sees the product he will be willing to buy it.<br />Less time spent by the shop staff in filling up the products.<br />It fills the consumers want & willingness.<br />Seeing “saving” communication consumers perceive display as promotion and buy them more willingly.<br />BIBLIOGRAPHY<br />WEBSITES<br />Coca Cola India<br />Myenjoyzone<br />Beverage Marketing Corporation<br /> Beverage Digest<br />BOOKS<br />Company’s monthly circulars<br />AC Neilson research papers<br />APPENDIX<br />Questionnaires<br />Work Formats<br />Sales Presenter<br />Drafts<br />Cash Bills<br />APPENDIX – 1<br />Questionnaire for Existing Outlets:<br />Hindustan Coca Cola Beverages Pvt. Ltd.<br />Disclaimer:-<br />This survey is being carried out to in compliance of the course curriculum of the Summer Trainee, by filling out this questionnaire you accept and provide the permission to use the data in the survey. The questionnaire will take 5-6 mins. to fill out (result of the pilot test). Just tick ( ) whichever is applicable in the appropriate questions.<br />Questionnaire<br />Q1. Name of Outlet: <br />Q2. Location: <br />Q3. Life span of business: <br />Q4. Total revenue per day: <br />Q5. Criteria no.’s (7 criteria’s for a new outlet) of the retailer. <br />Q6. Type of Outlet <br />
    • a. Grocery Store b. Medical Store c. E & D Outlets
    d. Convenience store e. Juice Corner T1 T2 <br />Q7. Deal with beverages, packaged juices and packaged water<br />
    • a. Yes b. Noc. Not all
    • 15. Q8. If yes, which brands?
    • 16. a. Pepsi b. Coco colac. Parle
    • 17. d. Dabur e. Any others
    • 18. Q9. Retailers VPO (Volume Per Outlet)
    a. Coke b. Pepsi c. For other<br />Q10. How often do u order? <br />Q11. If you do business with Coke, give reasons for keeping it.<br />Brand Value b. Better scheme<br />c. High Demand d. Good Supply<br /> High Profit Margin f. Good Service Quality<br /> Any Other <br />Q12. Any problem do you face while doing business with a Coke.<br />a. Timing & Frequency of Van b. Sales man’s ability<br />c. Sales man’s attitude d. Daily in orders<br />e. Complete information & daily schemes<br />f. Delivery man’s professionalism<br />Any Other <br />Suggestions, if any:-<br />SignatureDated: - …/…/2009<br />Questionnaire forNew Outlets:<br />Hindustan Coca Cola Beverages Pvt. Ltd.<br />Disclaimer:-<br />This survey is being carried out to in compliance of the course curriculum of the Summer Trainee, by filling out this questionnaire you accept and provide the permission to use the data in the survey. The questionnaire will take 5-6 mins. to fill out (result of the pilot test). Just tick ( ) whichever is applicable in the appropriate questions.<br />Questionnaire<br />Q1. Name of Outlet: <br />Q2. Location:<br />Q3. Life span of business:<br />Q4. Total sale per day:<br />Q5. Criteria no.’s (7 criteria’s for a new outlet) of the retailer? <br />Q6. Type of Outlet <br />
    • a. Grocery Store b. Medical Store c. E & D Outlets
    d. Convenience storee. Juice Corner T1 T2 <br />
    • Q7. Reasons for not doing business with Coke?
    Never approached by the company b. Less Demand<br /> c. Profitability d. Company Policies<br /> e. Competition from the near by outlet f. Distribution system<br /> g. lack of space in shop h. Non Suitability<br />
    • i. Any other
    Suggestions, if any:-<br />SignatureDated: - …/…/2009<br />Date of Opening Date Bill No. Estimated VPOChannelJust Tick ( )Sells ChipsCooling Equipment Pepsi OwnCriteria NO. (1 To 7)DistributorAddressContact No.Outlet Name<br />New Outlet Opening – 2009(Tracker)MD / STLArea / LocationTarget<br /> S.G.AIce Box TypeK P OType of refrigerator + SizeKo PEP OWNEmpty StatusPEPKoLocation / AreaContactNo.Outlet NameS. no<br />New Outlet Opening – 2009(Tracker)MD / STLArea / LocationTarget<br />SALES<br />PRESENTER<br />DRAFTS<br />CASH BILLS<br />