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  1. 1. OF The world’s most recognized trademarkit is recognized by 94% of the world’s population FORHINDUSTAN COCA -COLA BEVERAGES PVT. LTD. Visa kha pa ta nm. U N D E R G UI DAN C E O F: M r s . Ma d h u r i ( As s t . Pr o f e s s o r ) S UB MI T T E D B Y: V e n ka t e s hw a r l u . N MBA (2010-12) B AB A I NS T I T UE O F T E CH NO L O G Y & S CI E NC E S A C K NO WL E D GE ME NT 1
  2. 2. I would like to thank my Mr.DhanRajSinghBisht, CHANNELMARKETING EXECUTIVE, Coca-Cola India, without whom an internshipwith, Hindustan Coca-Cola Beverages Private Limited (HCCBPL) wouldnot have been possible. I am grateful to him for having taken time of fhis busy schedule and spoken to the concerned person to get me thisinternship. I express my gratitude to the Hindustan Coca -ColaBeverages Private Limited (HCCBPL) for having given me anopportunity to work with them and make the best out of my internsh ip.I thank my guide, Mr.Suresh for having trained me and constantlyguided and supported me throughout the training period. My heartfeltgratitude also goes out to the staff and employees at HCCBPL forhaving co-operated with me and guided me throughout t he one and ahalf months of my internship period. I thank my college, BABAInstitute of Technology science for having given me this opportunity toput to practice, the theoretical knowledge that I imparted from theprogram. I thank the internship co -coordinator, Mrs.Madhuri(Asst.Professor) for having guided and supported me through thecourse of the internship. I take this opportunity to thank my parentsand friends who have been with me and offered emotional strengthand moral support. 2
  3. 3. DECELARATIONI Ve n k a t e s h wa r l u .N d e c l a r e t h a t t h i s p r o j e c t r e p o r ttitled “Sales Promotion” is an original work doneby me under the guidance of Mr s . M A D H UR I( A S S T. P R OF ES S O R ) . I f u r t h e r d e c l a r e t h a t i t i s myo r i g i n a l w o r k a s a p a r t o f my a c a d e mi c c o u r s e .P L A CE : VI ZA GDATE: VENKATESHWARLU.N 3
  4. 4. E XE C UT I V E S UM M AR YCoca-Cola, the product that has given the world its best -known tastewas born in Atlanta, Georgia, on May 8, 1886. Coca -Cola Company isthe world‟s leading manufacturer, marketer and distributor of non -alcoholic beverage concentrates and syrups, used to pr oduce nearly400 beverage brands. It sells beverage concentrates and syrups tobottling and canning operators, distributors, fountain retailers andfountain wholesalers. Coca -Cola was first introduced by John SythPemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when heconcocted caramel-colored syrup in a three-legged brass kettle in hisbackyard. He first “distributed” the product by carrying it in a jugdown the street to Jacob‟s Pharmacy and customers bought the drinkfor five cents at the soda fountain. Carbonated water was teamed withthe new syrup, whether by accident or otherwise, producing a drinkthat was proclaimed “delicious and refreshing”, a theme that continuesto echo today wherever Coca -Cola is enjoyed. Coca-Cola originated asa soda fountain beverage in 1886 selling for five cents a glass. Earlygrowth was impressive, but it was only when a strong bottling systemdeveloped that Coca-Cola became the world -famous brand it is today.Coca-Cola was the leading soft drink brand in Ind ia until 1977, when itleft rather than reveal its formula to the Government and reduce itsequity stake as required under the Foreign Regulation Act (FERA)which governed the operations of foreign companies in India. In thenew liberalized and deregulated environment in 1993, Coca -Cola madeits re-entry into India through its 100% owned subsidiary, HCCBPL, theIndian bottling arm of the Coca -Cola Company. The main objective ofthis study lies in understanding the organization and studying andunderstanding the consumers‟ perception and opinion about thepromotions offerd by the Coca -Cola Company. A retailer samplinginvolving 200 outlets was conducted in a span of 10 days across majorareas in order to give the product s the required marketing push and torecognize the prospective a reas and their opinion in order t o develop 4
  5. 5. and market the offers in a better way in the near future. Themethodology used in studying and understanding the perceived viewsof consumers towards the sales & promotions was „SURVEYS ‟. Thefindings of the activity have been drawn out in form of graphs andsuggestions have been offered there from. 5
  6. 6. T A BL E O F C O NT E NT S CHAPTER 1: INTRODUCTION 1: INTRODUCTION……………………………………………….……09 1.1: A brief insight- The FMCG Industry in India……… ..………..10 1.2: A brief insight - The Beverage Industry in India………………13 Figure 1: Beverage In dustry in India…………..…………………….13 CHAPTER 2: THE COCA-COLA COMPANY 2.1: History…………………………………………………………………………..16 2.2: History of Bottling………………………………………………………..18 Figure 2 Contour bottle design ……………………………….……………19 2.3: The Coca-Cola Bottle over the Years ………………………………22 Figure 3: The Coca-Cola Bottle over the Years ………….………….22 2.4: Production…………………………………………….……………………….23 2.5 Brand Portfolio…………………………………….………………………….24 2.6: Manifesto for Growth……………….……………………………………28 2.6.1: Values………………………………………..…………………………………28 2.6.2: Mission…………………………….…………………………………………..28 2.6.3: Vision for Sustainable Growth……………………………………..29 Figure 4: Vision for Sustainable Growth………………..………………30 CHAPTER 3: HINDUSTAN COCA -COLA BEVERAGES PRIVATE LIMITED 3.1: About the Company……………………………………………………….31 Figure 5: Location of COBO , FOBO and Contract packers…….33 3.2: Manifesto for Growth ……………….……………………….………..33 3.2.1:Values…………………………………………….……………….………….33 6
  7. 7. 3.2.2:Vision for Sustainable Growth ……………...………………….343.2.3:Mission………………………………………………………………..……..343.2.4: Quality Policy …..……………………….………………………..…..353.3: Organization Structu re of Coca-Cola India…………….…….36Figure 6: Organization Stru cture of Coca-Cola India…….…….36Figure 7: Organization Stru cture of Coca-Cola India…….…….373.4: Organization Struc ture of the Sales Departmentin HCCBPL.38 Figure 8: Organization Struc ture of the Sales Department……383.5: Manufacturing Unit of HCCBPL…………………..……………….…39Figure 9: Chain followed from Manufacture to Distribution …393.6: Manufacturing process at HCCBPL……..………..……………..40Figure 10: Manufacturing process………………………..…………………403.7: Business Plan model at HCCBPL…………….……….…………….42Figure 11: Business Plan model at HCCBPL……….……………………423.8: Distribution Network……………..……………….…… ……………….433.8.1: Distribution Routes……….…………………….…………………….433.8.2: Distribution System…..…………………….…………………………443.8.3: Departments involved in the Distribution process.…….453.9: SWOT Analysis of HCCBPL……………………………..………………463.9.1: Strengths…………………….………………… ….……………………….463.9.2: Weaknesses……………….………………….……………………………473.9.3: Opportunities…………..………………….…………………………….483.9.4: Threats………………………………………….…………………………..493.10: Competitors to HCCBPL……………….………………………………50 CHAPTER 4:PRODUCTS………………………………..……………….……………514.1: Packaging details…………………….…..…………...…………………55 7
  8. 8. CHAPTER 5: PROJECT: 5.1 SALES PROMOTION….………………………………………….…… 60 5.1.1: INTRODUCTION TO SALES PROMOTION ……………….60 5.1.2: Consumer sales promotion techniques ……….….…..62 5.2 Sales Promotion Strategies………………………………...…..64 5.3: Objective of the Study………..………………………………….65 CHAPTER 6: Methodology 6.1: Research Methodology..……….…………….……………….….66 6.2: Data Analysis……………………..……………………………………68 6.3: Findings……………………………………………………………………70 6.4: Suggestions…………..………..………………………………………81 CHAPTER 7:CONCLUSION…………………………….…………………………...82BIBILOGRAPHY……………………….….…………………………..83DATA SOURCES………………………..……………………………… 83APPENDIX……………………………….……………………………..84 8
  9. 9. C HA P T E R 1: I NT R O D U C T I O NCoca-Cola, the product that has given the world its best -known tastewas born in Atlanta, Georgia, on May 8, 1886. Coca -Cola Company isthe world‟s leading manufacturer, marketer and distributor of non -alcoholic beverage concentrates and syrups, used to pr oduce nearly400 beverage brands. It sells beverage concentrates and syrups tobottling and canning operators, distributors, fountain retailers andfountain wholesalers. The Company‟s beverage products comprises ofbottled and canned soft drinks as well as concentrates, syrups andnot-ready-to-drink powder products. In addition to this, it alsoproduces and markets sports drinks, tea and coffee. The Coca -ColaCompany began building its global network in the 1920s. Nowoperating in more than 200 countries an d producing nearly 400 brands,the Coca-Cola system has successfully applied a simple formula on aglobal scale: “Provide a moment of refreshment for a small amount ofmoney- a billion times a day.”The Coca-Cola Company and its network of bottlers compr ise the mostsophisticated and pervasive production and distribution system in theworld. More than anything, that system is dedicated to people workinglong and hard to sell the products manufactured by the Company. Thisunique worldwide system has made T he Coca-Cola Company the world‟spremier soft-drink enterprise. From Boston to Beijing, from Montreal toMoscow, Coca-Cola, more than any other consumer product, hasbrought pleasure to thirsty consumers around the globe. For more than115 years, Coca-Cola has created a special moment of pleasure forhundreds of millions of people every day. 9
  10. 10. The Company aims at increasing shareowner value over time. Itaccomplishes this by working with its business partners to deliversatisfaction and value to consumers through a worldwide system ofsuperior brands and services, thus increasing brand equity on a globalbasis. They aim at managing their business well with people who arestrongly committed to the Company values and culture and providingan appropriately controlled environment, to meet business goals andobjectives. The associates of this Company jointly take responsibilityto ensure compliance with the framework of policies and protect theCompany‟s assets and resources whilst limiting business risks.1 . 1: A BR I E F I N S I G HT - THE F MC G I ND US T R Y I NI ND I AFast Moving Consumer Goods (FMCG), also known as ConsumerPackaged Goods (CPG) are products that have a quick turnover andrelatively low cost. Consumers generally put less thought into thepurchase of FMCG than they do for other products.The Indian FMCG industry witnessed significant changes through the1990s. Many players had been facing severe problems on account ofincreased competition from small and regional players and from slowgrowth across its various product categories. As a result, most of thecompanies were forced to revamp their product, marketing,distribution and customer service strategies to strengthen theirposition in the market.By the turn of the 20th century, the face of the Indian FMCG industryhad changed significantly. With the liberalization and growth of theIndian economy, the Indian customer witnessed an increasing exposureto new domestic and foreign products through dif ferent media, such astelevision and the Internet. Apart from this, social changes such as 10
  11. 11. increase in the number of nuclear families and the growing number ofworking couples resulting in increased spending power also contributedto the increase in the Indian consumers personal consumption. Therealization of the customers growing awareness and the need to meetchanging requirements and preferences on account of changinglifestyles required the FMCG producing companies to formulatecustomer-centric strategies. These changes had a positive impact,leading to the rapid growth in the FMCG industry. Increasedavailability of retail space, rapid urbanization, and qualified manpoweralso boosted the growth of the organized retailing sector.HLL led the way in revolutionizing the product, market, distributionand service formats of the FMCG industry by focusing on ruralmarkets, direct distribution, creating new product, distribution andservice formats. The FMCG sector also received a boost by governmentled initiatives in the 2003 budget such as the setting up of excise freezones in various parts of the country that witnessed firms moving awayfrom outsourcing to manufacturing by investing in the zones.Though the absolute profit made on FMCG products is re latively small,they generally sell in large numbers and so the cumulative profit onsuch products can be large. Unlike some industries, such asautomobiles, computers, and airlines, FMCG does not suffer from masslayoffs every time the economy starts to d ip. A person may put offbuying a car but he will not put off having his dinner.Unlike other economy sectors, FMCG share float in a steady mannerirrespective of global market dip, because they generally satisfy ratherfundamental, as opposed to luxurious needs. The FMCG sector, whichis growing at the rate of 9% is the fourth largest sector in the IndianEconomy and is worth Rs.93000 crores. The main contributor, makingup 32% of the sector, is the South Indian region. It is predicted that 11
  12. 12. in the year 2010, the FMCG sector will be worth Rs.143000 crores. Thesector being one of the biggest sectors of the Indian Economyprovides up to 4 million jobs. (Source: HCCBPL, Monthly Circular,March)The FMCG sector consists of the following categories: Personal Care- Oral care, Hair care, Wash (Soaps),Cosmetics and Toiletries, Deodorants and Perfumes, Paper products(Tissues, Diapers, Sanitary products) and Shoe care; the major playersbeing; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Daburand Procter & Gamble. Household Care- Fabric wash (Laundry soaps and syntheticdetergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners),Air fresheners, Insecticides and Mosquito repellants, Metal polish andFurniture polish; the major players being; Hindustan Lever Limited,Nirma and Ricket Colman. Branded and Packaged foods and beverages - Healthbeverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits,Breads, Cakes), Snack foods, Chocolates, Ice -creams, Tea, Coffee,Processed fruits, Processed vegetables, Processed meat, Branded flour,Bottled water, Branded rice, Branded sugar, Juices; the major playersbeing; Hindustan Lever Limited, Nestle, Coca -Cola, Cadbury, Pepsi andDabur Spirits and Tobacco; the major players being; ITC,Godfrey, Philips and UB 12
  13. 13. 1 . 2: BE V E R AG E I ND US T R Y IN I ND I A: A BR I E FI N S I G HTIn India, beverages form an important part of the lives of people. It isan industry, in which the players constantly innovate, in order to comeup with better products to gain more consumers and satisfy theexisting consumers. BEVERAGES Alcoholic Non-Alcoholic Carbonated Non- carbonated Cola Non-Cola Non-ColaFIGURE 1: BEVERAGE INDUSTRY IN INDIAThe beverage industry is vast and there various ways of segmenting it,so as to cater the right product to the right person. The different waysof segmenting it are as follows: 13
  14. 14. Alcoholic, non-alcoholic and sports beverages Natural and Synthetic beverages In-home consumption and out of home on premisesconsumption. Age wise segmentation i.e. beverages for kids, for adultsand for senior citizens Segmentation based on the amount of consumption i.e. highlevels of consumption and low levels of consumption.If the behavioral patterns of consumers in India are closely noticed, itcould be observed that consumers perceive beverages in two differentways i.e. beverages are a luxu ry and that beverages have to beconsumed occasionally. These two perceptions are the biggestchallenges faced by the beverage industry. In order to leverage thebeverage industry, it is important to address this issue so as toencourage regular consumption as well as and to make the industrymore affordable.Four strong strategic elements to increase consumption of theproducts of the beverage industry in India are: The quality and the consistency of beverages needs to beenhanced so that consumers are satisfied and they enjoy consumingbeverages. The credibility and trust needs to be built so that there is avery strong and safe feeling that the consumers have whil e consumingthe beverages. 14
  15. 15. Consumer education is a must to bring out benefits ofbeverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well -being or prestige relevant tothe category. Communication should be relevant and trendy so thatconsumers are able to find an appeal to go out, purchase andconsume.The beverage market has still to achieve greater penetration and alsoa wider spread of distribution. It is important to look at the entirebeverage market, as a big opportunity, for brand and sales growth inturn to add up to the overall growth of the food and beverage industryin the economy. 15
  16. 16. C HA P T E R 2: T H E C O C A -C O L A C O M P AN Y2.1: HISTORYJohn Smyth Pemberton, a pharmacist, first introduced Coca -Cola in theyear 1886 in Atlanta, Georgia when he concocted caramel -coloredsyrup in a three-legged brass kettle in his backyard. He first“distributed” the product by carrying it in a jug down the street toJacob‟s Pharmacy and customers bought the drink for five cents at thesoda fountain. Carbonated water was teamed with the new syrup,whether by accident or otherwise, producing a drink that wasproclaimed “delicious and refreshing”, a theme that continues to echotoday wherever Coca-Cola is enjoyed.Dr. Pemberton‟s partner and book -keeper, Frank M. Robinson,suggested the name and penned “Coca -Cola” in the unique flowingscript that is famous worldwide even today. He suggested that “thetwo Cs would look well in advertising.” The first newspaper ad forCoca-Cola soon appeared in The Atlanta Journal, inviting thirstycitizens to try “the new and popular soda fountain drink.” Hand -painted oil cloth signs reading “Coca -Cola” appeared on store awning s,with the suggestions “Drink” added to inform passersby that the newbeverage was for soda fountain refreshment.By the year 1886, sales of Coca-Cola averaged nine drinks per day.The first year, Dr. Pemberton sold 25 gallons of syrup, shipped inbright red wooden kegs. Red has been a distinctive color associatedwith the soft drink ever since. For his efforts, Dr. Pemberton grossed$50 and spent $73.96 on advertising. Dr. Pemberton never realized thepotential of the beverage he created. He gradually so ld portions of his 16
  17. 17. business to various partners and, just prior to his death in 1888, soldhis remaining interest in Coca -Cola to Asa G. Candler, an entrepreneurfrom Atlanta. By the year 1891, Mr. Candler proceeded to buyadditional rights and acqui re complete ownership and control of theCoca-Cola business. Within four years, his merchandising flair hadhelped expand consumption of Coca-Cola to every state and territoryafter which he liquidated his pharmaceutical business and focused hisfull attention on the soft drink. With his brother, John S. Candler,John Pemberton‟s former partner Frank Robinson and two otherassociates, Mr. Candler formed a Georgia corporation named the Coca -Cola Company. The trademark “Coca -Cola,” used in the marketplacesince 1886, was registered in the United States Patent Office onJanuary 31, 1893.The business continued to grow, and in 1894, the first syrupmanufacturing 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 -ColaCompany‟s incorporation, Mr. Candler announced in his annual reportto share owners that “Coca -Cola is now drunk in every state andterritory in the United States.”As demand for Coca-Cola increased, the Company quickly outgrew itsfacilities. A new building erected in 1898 was the first headquartersbuilding devoted exclusively to the production of syrup and themanagement of the business. In the year 1919, the Coca -Cola Companywas sold to a group of investors for $25 million. Robert W. Woodruffbecame the President of the Company in the year 1923 and his morethan sixty years of leadership took the business to unsurpassed 17
  18. 18. heights of commercial success, making Coca -Cola one of the mostrecognized and valued brands around the world.2 . 2: HI S T O R Y O F BO T T L I NGCoca-Cola originated as a soda fountain beverage in 1886 selling forfive cents a glass. Early growth was impressive , but it was only when astrong bottling system developed that Coca -Cola became the world-famous brand it is today.YEAR WISE HISTORY OF BOTTLING:Year 1894: A modest start for a bold ideaIn a candy store in Vicksburg, Mississippi, brisk sales of the newfountain beverage called Coca -Cola impressed the stores owner,Joseph A. Biedenharn. He began bottling Coca -Cola to sell, using acommon glass bottle called a Hutchinson. Biedenharn sent a case toAsa Griggs Candler, who owned the Company. Candler tha nked him buttook no action. One of his nephews already had urged that Coca -Colabe bottled, but Candler focused on fountain sales.Year 1899: The first bottling agreementTwo young attorneys from Chattanooga, Tennessee believed they couldbuild a business around bottling Coca-Cola. In a meeting with Candler,Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rightsto bottle Coca-Cola across most of the United States for a sum of onedollar. A third Chattanooga lawyer, John T. Lupton, soon joi ned theirventure. 18
  19. 19. Years 1900-1909: Rapid growthThe three pioneer bottlers divided the country into territories and soldbottling rights to local entrepreneurs. Their efforts were boosted bymajor progress in bottling technology, which improved effic iency andproduct quality. By 1909, nearly 400 Coca -Cola bottling plants wereoperating, most of them family -owned businesses. Some were openonly during hot-weather months when demand was high.Year 1916: Birth of the Contour BottleBottlers worried that Coca-Colas straight-sided bottle was easilyconfused with imitators. A group representing the Company andbottlers asked glass manufacturers to offer ideas for a distinctivebottle. A design from the Root Glass Company of Terre Haute, Indianawon enthusiastic approval. The Contour Bottle became one of the fewpackages ever granted trademark status by the U.S. Patent Office.Today, it is one of the most recognized icons in the world. 19
  20. 20. Figure 2 Contour bottle designIn the 1920s: Bottling overtakes fountain salesAs the 1920s dawned; more than 1,000 Coca -Cola bottlers wereoperating in the U.S. Their ideas and zeal fueled steady growth. Six -bottle cartons were a huge hit starting in 1923. A few years later,open-top metal coolers became the forerunners of automated vendingmachines. By the end of the 1920s, bottle sales of Coca -Cola exceededfountain sales.In the 1920s and 1930s: International expansionLed by Robert W. Woodruff, chief executive officer and chairman ofthe Board, the Company began a major push to establish bottlingoperations outside the U.S. Plants were opened in France, Guatemala,Honduras, Mexico, Belgium, Italy and South Africa. By the time Worl dWar II began, Coca-Cola was being bottled in 44 countries. 20
  21. 21. In the 1940s: Post-war growthDuring the war, 64 bottling plants were set up around the world tosupply the troops. This followed an urgent request for bottlingequipment and materials from G eneral Eisenhowers base in NorthAfrica. Many of these war -time plants were later converted to civilianuse, permanently enlarging the bottling system and accelerating thegrowth of the Companys worldwide business.In the 1950s: Packaging innovationsFor the first time, consumers had choices of Coca -Cola package sizeand type-the traditional 6.5 ounce Contour Bottle, or larger servingsincluding 10, 12 and 26 ounce versions. Cans were also introduced,becoming generally available in 1960.In the 1960s: Introduction of new brandsSprite, Fanta, Fresca and TAB joined brand Coca -Cola in the 1960s. Mr.Pibb and Mello Yello were added in the 1970s. The 1980s brought dietCoke and Cherry Coke, followed by PowerAde and Fruitopia in the1990s. Today scores of other brands are offered to meet consumerpreferences in local markets around the world. 21
  22. 22. In the 1970s and 1980s: Consolidation to serve customersAdvancement in technology led to global economy, retail customers ofThe Coca-Cola Company merged and evolved into international megachains. Such customers required a new approach. In response, manysmall and medium-size bottlers consolidated to better serve giantinternational customers. The Company encouraged and invested in anumber of bottler consolidations to assure that its largest bottlingpartners would have capacity to lead the system in working with globalretailers.In the 1990s: New and growing marketsPolitical and economic changes opened vast markets that were closedor underdeveloped for decades. After the fall of the Berlin Wall, theCompany invested heavily to build plants in Eastern Europe. As thecentury closed, more than $1.5 billion was committed to new bottlingfacilities in Africa.21st Century: Coca-Cola todayThe Coca-Cola bottling system grew up with roots deeply planted inlocal communities. This heritage serves the Company well today asconsumers seek brands that honor local identity and thedistinctiveness of local markets. As was true a century ago, stronglocally based relationships between Coca -Cola bottlers, customers andcommunities are the foundation on which the entire business grows. 22
  23. 23. 2 . 3 T h e C oc a -C o la B ot t l e ov e r t h e Y ea r s Fi g u r e 3 : T h e Co c a - Co l a B o t t l e o v e r t h e Y e a r s2.4 ProductionIngredients Carbonated water Sugar (sucrose or high-fructose corn syrup depending on country of origin) Caffeine 23
  24. 24.  Phosphoric acid Caramel color (E150d) Natural flavoringsA can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates(all from sugar, approximately 10 teaspoons),50 mg of sodium,0 grams fat, 0 grams potassium, and 140 calories.Formula of natural flavoringsCoca-Cola formula:The exact formula of Coca -Colas natural flavorings (but not its otheringredients, which are listed on the side of the bottle or can) isa trade secret. The original copy of the formula was held in SunTrustBanks main vault in Atlanta for 86 years. Its p redecessor, the TrustCompany, was the underwriter for the Coca-Cola Companys initialpublic offering in 1919. On December 8, 2011, the original secretformula was moved from the vault at SunTrust Banks to a new vaultcontaining the formula which will be on display for visitors to its Worldof Coca-Cola museum in downtown Atlanta.A popular myth states that only two executives have access to theformula, with each executive having only half the formula The truth isthat while Coca-Cola does have a rule r estricting access to only twoexecutives, each knows the entire formula and others, in addition tothe prescribed duo, have known the formulation process.On February 11, 2011, Ira Glass revealed on his PRI radio show, ThisAmerican Life, that the secret formula to Coca-Cola had beenuncovered in a 1979 newspaper. The formula found basically matchedthe formula found in Pembertons diary. 24
  25. 25. Logo designThe famous Coca-Cola logo was created by John Pembertonsbookkeeper, Frank Mason Robinson, in 1885.Robinson came up withthe name and chose the logos distinctive cursive script.The typeface used, known as Spencerian script, was developed in themid-19th century and was the dominant form of formal handwriting inthe United States during that peri od. Robinson also played a significant role in early Coca -Colaadvertising. His promotional suggestions to Pemberton included givingaway thousands of free drink coupons and plastering the cityof Atlanta with publicity banners and streetcar signs.2.5 Brand Portfolio:This is a list of variants of Coca-Cola introduced around the world. In addition to thecaffeine-free version of the original, additional fruit flavors have been included over theyears. Not included here are versions of Diet Coke and Coca-Cola Zero; variant versions ofthose no-calorie colas can be found at their respective articles. 25
  26. 26. Name Launched Discontinued Notes PictureCoca-Cola 1886 The original version of Coca-Cola.Caffeine-Free The caffeine free version of Coca- 1983Coca-Cola Cola. Was available in Canada starting inCoca-Cola 1996. Called "Cherry Coca-Cola 1985Cherry (Cherry Coke)" in North America until 2006. 26
  27. 27. New Still available in Yap and AmericanCoke/"Coca- 1985 2002 SamoaCola II" Available in: Australia, American Samoa, Austria, Belgium, Brazil, China, Denmark,Federation of Bosnia and Herzegovina, Finland, France,Coca-Cola Germany, Hong Kong, Iceland, Korea, 2001 2005with Lemon Luxembourg, Macau, Malaysia, Mongolia, Netherlands, New Caledonia, New Zealand, Norway, Réunion, Singapore, Spain, Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza Available in: Austria, Australia, China, Finland, Germany, Hong Kong, NewCoca-Cola 2002; Zealand, Malaysia, Sweden, United 2005Vanilla 2007 Kingdom and United States. It was reintroduced in June 2007 by popular demand. Available in Belgium, Netherlands,Coca-Cola 2005 Singapore, Canada, the Unitedwith Lime Kingdom, and the United States. 27
  28. 28. Was only available in New Zealand.Coca-Cola Currently available in the United June 2005 End of 2005Raspberry States in Coca-Cola Freestyle fountain since 2009.Coca-Cola Was replaced by Vanilla Coke in JuneBlack Cherry 2006 Middle of 2007 2007Vanilla Only available in the United States,Coca-Cola Beginning of France, Canada, Czech Republic, 2006Blāk 2008 Bosnia and Herzegovina, Bulgaria and Lithuania Only available in Bosnia andCoca-Cola 2006 Herzegovina, New Zealand andCitra Japan. 28
  29. 29. Was available in the United Kingdom and Gibraltar for a limited time. In Germany, Austria and Switzerland itsCoca-Cola 2007 sold under the label Mezzo Mix.Orange Currently available in Coca-Cola Freestyle fountain outlets in the United States since 2009.2 . 6: MA NI F E S T O F O R GR O WT H2.6.1: VALUES:Coca-Cola is guided by shared values that both the employees asindividuals and the Company will live by; the values being: LEADERSHIP: The courage to shape a better future PASSION: Committed in heart and mind INTEGRITY: Be real ACCOUNTABILITY: If it is to be, it‟s up to me COLLABORATION: Leverage collective genius INNOVATION: Seek, imagine, create, delight QUALITY: What we do, we do well 29
  30. 30. 2.6.2: MISSION To Refresh the World... In body, mind, and spirit To Inspire Moments of Optimism... Through our brands andour actions To Create Value and Make a Difference ... Everywhere weengage.2.6.3: VISION FOR SUSTAINABLE GROWTH PROFIT: Maximizing return to shareowners while beingmindful of our overall responsibilities. PEOPLE: Being a great place to work where people areinspired to be the best they can be. PORTFOLIO: Bringing to the world a portfolio of be veragebrands that anticipate and satisfy peoples‟ Desires and needs. PARTNERS: Nurturing a winning network of partners andbuilding mutual loyalty. PLANET: Being a responsible global citizen that makes adifference. 30
  32. 32. C HA P T E R 3: HI ND US T AN C O C A -C O L A BE V E R AGE SP R I V AT E L I MI T E D ( HC C BP L )3.1: ABOUT THE COMPANYCoca-Cola was the leading soft drink brand in India until 1977, when itleft rather than reveal its formula to the Government and reduce itsequity 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 26 th October 1993 after a gap of16 years, with its launch in Agra. An agreement with the Parle Groupgave the Company instant ownership of the top soft drink brands ofthe nation. With access to 53 of Parle‟s plants and a well set bottlingnetwork, an excellent base for rapid introduction of the Company‟sInternational brands was formed. The Coca -Cola Company acquiredsoft drink brands like Thumps Up, Goldspot, Limca, Maaza, which werefloated by Parle, as these products had achieved a strong consumerbase and formed a strong brand image in Indian market during the r e-entry of Coca-Cola in 1993.Thus these products became a part ofrange of products of the Coca -Cola Company.In the new liberalized and deregulated environment in 1993, Coca -Colamade 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 theCompany agreed to implement in due course. One such majorcommitment was that, the Hindustan Coca -Cola Holdings would divest49% of its shareholding in favor of resident shareholders by June2002. 32
  33. 33. Coca-Cola is made up of 7000 local employees, 500 managers, over 60manufacturing locations, 27 Company Owned Bottling Operations(COBO), 17 Franchisee Owned Bottling Operations (FOBO) and anetwork of 29 Contract Packers that facilitate the manufacture pr ocessof a range of products for the company. It also has a supportingdistribution network consisting of 700,000 retail outlets and 8000distributors. Almost all goods and services required to cater to theIndian market are made locally, with help of tech nology and skillswithin the Company. The complexity of the Indian market is reflectedin the distribution fleet which includes different modes of distribution,from 10-tonne trucks to open-bay three wheelers that can navigatethrough narrow alleyways of Indian cities and trademarked tricyclesand pushcarts.“Think local, act local”, is the mantra that Coca -Cola follows, withpunch lines like “Life ho to aisi” for Urban India and “Thanda MatlabCoca-Cola” for Rural India. This resulted in a 37% growth rat e in ruralIndia visa-vie 24% growth seen in urban India. Between 2001 and2003, the per capita consumption of cold drinks doubled due to thelaunch of the new packaging of 200 ml returnable glass bottles whichwere made available at a price of Rs.5 per bo ttle. This new marketaccounted for over 80% of India‟s new Coca -Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches theirbusiness should benefit, thereby inducing them to uphold these values,enabling the Company to achieve success, recognition and loyaltyworldwide. 33
  34. 34. COBO FOBO CONTRACT PACKAGINGFIGURE 5: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING ININDIA3 . 2: MA NI F E S T O F O R GR O WT H3.2.1: VALUESThe values that the employees in the Company are expected to keepup to and work by regularly are as follows: LEADERSHIP: To take an initiative and lead, motivate anddrive the team with energy and zeal, to deliver outstanding results. INNOVATION: To continuously strive for progress and reachthe next level of excellence in everything we do. 34
  35. 35. PASSION: To be deeply committed and display drive andenergy in the quest to deliver outstanding performance. TEAMWORK: To unite for greater strength and workcollectively as a group towards the achievement of common goals. OWNERSHIP: To think and act like owners at all levels; tohave decisions taken at the lowest appropriate level. ACCOUNTABILITY: To be individually and transparentlyaccountable to our colleagues for delivering agreed targets and goals.3.2.2: VISION FOR SUSTAINABLE GROWTHTo provide exceptional strategic leadership in the Coca -Cola IndiaSystem-resulting in consumer and customer preference and loy alty,through Coca-Cola‟s commitment to them, and in a highly profitableCoca-Cola Corporate branded beverages system.3.2.3: MISSIONTo create consumer products, services and communications, customerservice and bottling system strategies, processes and tools in order tocreate competitive advantage and deliver superior value to; Consumers as a superior beverage experience Consumers as an opportunity to grow profits through the useof finished drinks 35
  36. 36. Bottlers as an opportunity to grow profits in volumes Bottlers as a trademark enhancement and positive economicvalue added Suppliers as an opportunity to make reasonable profits whencreating real value-added in an environment of system -wide teamwork, flexible business system and continuous impro vement Indian society in the form of a contribution to economic andsocial development.3.2.4: QUALITY POLICY“To ensure customer delight, we commit to quality in our thoughts,deeds and actions by continually improving our processes…Every time.” 36
  37. 37. 3 . 3: O R GA NI Z AT I O N S T R UC T UR E O F C O C A - C O L A I NI ND I A Chief Executive Officer Vice President Supply Chain Chief Finance Officer Human Resource Director Vice President BSG Regional Vice President (North) Regional Vice President (Central)FIGURE 6: ORGANIZATION STRUCTURE IN COCA-COLA, INIDA 37
  38. 38. Region Vice President AGM/AOD Unit 1 AGM/AOD Unit 2 AGM/AOD Unit 3 AGM/AOD Unit4 Region Finance Region Human Resource Region Customer Service Region External Affairs Region Cold Drink Region Legal Region BSG Region Director/Manager Market Execution Region Capability Region Channel ManagementFIGURE 7: ORGANIZATION STRUCTURE IN COCA -COLA, INDIA 38
  39. 39. 3.4: ORGANIZATION STRUCTURE OF THE SALESDEPARTMENT IN HCCBPL: AGM/AOD Finance Manager General Human Sales Plant Route to Resource ManagerManager Market Manager Area Area Sales Channel Capability Manager Manager Manager Sales Executive Marketing Sales Trainers Distributors Market Key And Developer Accounts SalesmenFIGURE 8: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT 39
  40. 40. 3.5: MANUFACTURING UNIT OF HCCBPLThe manufacturing unit of HCCBPL, situated at Bidadi, is the thirdlargest plant and one of the bottling operations owned by thecompany. The Plant has one PET line which has the capacity ofyielding 209 bottles, per minute, two RGB (Returnable glass bottl es)lines which yields 600 bottles per minute each and one Juice linewhich yield 155 bottles per minute. It caters to the whole of SouthKarnataka through a network of more than 80 distributors. There arethree depots in Bangalore; North Depot, East Depot and Mega Depot. Manufacturing Plant, Bidadi Sales and Distribution Operations Distributors Outlets OutletsFIGURE 9: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION 40
  41. 41. 3.6: MANUFACTURING PROCESS AT HCCBPL FIGURE 10: MANUFACTURING PROCESSThe manufacturing of the products of Coca -Cola involves the followingsteps: Water is received from the River Cauvery and it passesthrough the water treatment plant, further passing through the sandfilter and the activated carbon filter, so as to attain pure cleansedwater. In the syrup room, the concentrate re ceived from anotherbottling plant situated at Pune, is blended with the sugar syrup 41
  42. 42. Once both the water and the final syrup are ready, they areboth mixed together and sent to the carbonator section where CarbonDioxide is added to the mixture to form the final product. On the other hand, simultaneously, the returnable glassbottles are depalletized, inspected and washed for the purpose offilling in the final product in it. This step does not take place in thePET bottle line as the bottles once use d are disposed. The product is finally filled in the bottles, crowned (in caseof RGB)/ capped (in case of PET bottles), labeled and cased in order tobe sent into the warehouse for distribution. 42
  43. 43. 3.7: BUSINESS PLAN MODEL AT HCCBPL Coca-Cola India Manufactures division, Concentrate, Gurgaon Beverage base and Syrup Regional Manufactures Bottlers finished COBO/FOBO Bottles/Cans/Fountai n Syrup Customers Consumers FIGURE 11: BUSINESS PLAN MODEL 43
  44. 44. 3 . 8: D I S T R I B UT I O N NE T W O R KHCCBPL has a wide and well managed network of salesmen appointedfor taking up the responsibility of distribution of products to diverseparts of the cities. The distribution channels are constructed in such away that the demand of customers is fulfilled at the right place andthe right time when it is needed by them.A typical distribution chain at HCCBPL would be:Production --- Plant Warehouse --- Depot Warehouse ---Distribution Warehouse --- Retail Stock --- Retail Shelf ---ConsumerThe customers of the Company are divided into different categoriesand different routes, and every salesman is assigned to one particularroute, which is to be followed by him on a daily basis. A detailed andwell organized distribution system contributes to the efficiency of thesalesmen. It also leads to low costs, higher sales and higher efficiencythereby leading to higher profits to the fi rm.3.8.1: DISTRIBUTION ROUTESThe various routes formulated by HCCBPL for distribution of productsare as follows: Key Accounts: The customers in this category collectivelycontribute a large chunk of the total sales of the Company. It basicallyconsists of organizations that buy large quantities of a product in onesingle transaction. The Company provides goods to these customers on 44
  45. 45. credit, payments being made by them after a certain period of timei.e. either a month of half a month.Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc. Future Consumption: This route consists of outlets ofCoca-Cola products, wherein a considerable amount of stock is kept inorder to use for future consumption. The stock does not exhaustwithin a day or two, instead as and when required stocks are stackedup by them so as to avoid shortage or non-availability of the product.Examples: Departmental stores, Super markets etc. Immediate Consumption: The outlets in this route arethose which require stocks o n a daily basis. The stocks of products inthese outlets are not stored for future use instead, are exhausted onthe same day and might run a little into the next day i.e. the productsare consumed at a fast pace. Examples: Small sized bars and restaurants, educationalinstitutions etc. General: Under this route, all the outlets that come in aparticular area or an area along with its neighboring areas are cateredto. The consumption period is not taken into consideration in thisparticular route.3.8.2: DISTRIBUTION SYSTEM Direct distribution: In direct distribution, the bottling unitor the bottler partner has direct control over the activities of sales,delivery, and merchandising and local account management at thestore level. Indirect distribution: In indirect distribution, anorganization which is not part of the Coca -Cola system has control on 45
  46. 46. one or more of the distribution elements (Sales, delivery,merchandising and local account management) Merchandising: Merchandising means communi cation withthe consumer at the point of purchase to convey product benefit, valueand Quality. Sales people and delivery personnel both have thisresponsibility. In certain locations special teams who go into businesslocations to specifically merchandis e our products.3.8.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTIONPROCESSThe Distribution process mainly consists of three departments: Distribution Department: It appoints distributors andestablishes a distribution network, processes approved sale orders andprepares invoices, arranges logistics and ship products, co -ordinateswith distributors for collections and monitors distribution stocks andtheir set-up. Finance Department: It checks credit limits and approvessales orders in compliance with the credit policy followed by the firm,records collections from distributors, periodically reconcilesoutstanding balances from distributors, obtains balance confirmationfrom distributors and follows up outstanding balances. Shipping or Warehousing Department: It dispatchesgoods as per approved by order, ensures that stocks are dispatched ona FIFO basis, ensures physical control over load out area and updateswarehouse stock records in a timely manner. 46
  47. 47. 3 . 9: S WO T A NA L Y S I S O F HC C BP L3.9.1: STRENGTHS DISTRIBUTION NETWORK: The Company has a strong andreliable distribution network. The network is formed on the basis ofthe time of consumption and the amount of sales yielded by aparticular customer in one transaction. It has a distribution networkconsisting of a number of efficient salesmen, 700,000 retail outletsand 8000 distributors. The distribution fleet includes different modesof distribution, from 10-tonne trucks to open-bay three wheelers thatcan navigate through narrow alleyways of Indian cities andtrademarked tricycles and pushcarts. STRONG BRANDS: The products produced and marketed bythe Company have a strong brand image. People all around the worldrecognize the brands marketed by the Company. Strong brand nameslike Sprite, Fanta, Limca, Thums Up and Maaza add up to the brandname 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 allover the world. Coca-Cola has been named the worlds top brand for afourth consecutive year in a survey by consultancy Interbrand. It wasestimated that the Coca-Cola brand was worth $70.45billion.( LOW COST OF OPERATIONS: The production, marketingand distribution systems are very efficient due to forward planning andmaintenance of consistency of operations which minimizes wastage ofboth time and resources leads to lowering of costs. 47
  48. 48. 3.9.2: WEAKNESSES LOW EXPORT LEVELS: The brands produced by thecompany are brands produced world wide thereby making the exportlevels very low. In India, there exists a major controversy concerningpesticides and other harmful chemicals in bottled products includingCoca-Cola. In 2003, the Centre for Science and Environment (CSE), anon-governmental organization in New Delhi, said aerated watersproduced by soft drinks manufacturers in India, including multinationalgiants PepsiCo and Coca-Cola, contained toxins including lindane, DDT,malathion and chlorpyrifos- pesticides that can contribute to cancerand a breakdown of the immune system. Therefore, people abroad, areapprehensive about Coca-Cola products from India. SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITYTO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company‟soperations are carried out on a small scale and due to Governmentrestrictions and „red -tapism‟, the Company finds it very difficult toinvest in technological advancements and achieve economies of scale. 48
  49. 49. 3.9.3: OPPORTUNITIES LARGE DOMESTIC MARKETS: The domestic market for theproducts of the Company is very high as compared to any other softdrink manufacturer. Coca-Cola India claims a 58 per cent share of thesoft drinks market; this includes a 42 per cent share of the colamarket. Other products account for 16 per cent market share, chieflyled by Limca. The company appointed 50,000 new outlets in the firsttwo months of this year, as part of its plans to cover one lakh outletsfor the coming summer season and this also covered 3,500 newvillages. In Bangalore, Coca-Cola amounts for 74% of the beveragemarket. EXPORT POTENTIAL: The Company can come up with newproducts which are not manufactured abroad, like Maaza etc andexport them to foreign nations. It can come up with strategies toeliminate apprehension from the minds of the people towards the Cokeproducts produced in India so that there will be a considerable amountof exports and it is yet another opportunity to broaden futureprospects and cater to the global markets rather than just domes ticmarket. HIGHER INCOME AMONG PEOPLE: Development of Indiaas a whole has lead to an increase in the per capita income therebycausing an increase in disposable income. Unlike olden times, peoplenow have the power of buying goods of their choice withou t having toworry much about the flow of their income. The beverage industry cantake advantage of such a situation and enhance their sales. 49
  50. 50. 3.9.4: THREATS IMPORTS: As India is developing at a fast pace, the percapita income has increased over th e years and a majority of thepeople are educated, the export levels have gone high. Peopleunderstand trade to a large extent and the demand for foreign goodshas increased over the years. If consumers shift onto importedbeverages rather than have bevera ges manufactured within thecountry, it could pose a threat to the Indian beverage industry as awhole in turn affecting the sales of the Company. TAX AND REGULATORY SECTOR: The tax system in India isaccompanied by a variety of regulations at each stage on theconsequence from production to consumption. When a license isissued, the production capacity is mentioned on the license and everytime the production capacity needs to be increased, the license posesa problem. Renewing or updating a license ever y now and then isdifficult. Therefore, this can limit the growth of the Company and poseproblems. SLOWDOWN IN RURAL DEMAND: The rural market may bealluring but it is not without its problems: Low per capita disposableincomes that is half the urban disposable income; large number ofdaily wage earners, acute dependence on the vagaries of the monsoon;seasonal consumption linked to harvests and festivals and specialoccasions; poor roads; power problems; and inaccessibility toconventional advertising media. All these problems might lead to aslowdown in the demand for the company‟s products. 50
  51. 51. 3 . 10: C O M P E T I T O R S T O HC C B P LThe competitors to the products of the company mainly lie in the non -alcoholic beverage industry consisting of juices and soft drinks.The key competitors in the industry are as follows: PepsiCo: The PepsiCo challenge, to keep up with archrival,the Coca-Cola Company never ends for the Worlds # 2, carbonatedsoft-drink maker. The companys soft dr inks include Pepsi, MountainDew, and Slice. Cola is not the companys only beverage; PepsiCo sellsTropicana orange juice brands, Gatorade sports drink, and Aquafinawater. PepsiCo also sells Dole juices and Lipton ready -to-drink tea.PepsiCo and Coca-Cola hold together, a market share of 95% out ofwhich 60.8% is held by Coca-Cola and the rest belongs to Pepsi. Nestlé: Nestle does not give that tough a competition toCoca-Cola as it mainly deals with milk products, Baby foods andChocolates. But the iced tea that is Nestea which has been introducedinto the market by Nestle provides a considerable amou nt ofcompetition to the products of the Company. Iced tea is one of theclosest substitutes to the Colas as it is a thirst quencher and it ishealthier when compared to fizz drinks. The flavored milk productsalso have become substitutes to the products o f the company due togrowing health awareness among people. Dabur: Dabur in India, is one of the most trusted brands asit has been operating ever since times and people have laid all theirtrust in the Company and the products of the Company. Apart fromfood products, Dabur has introduced into the market Real Juice whichis packaged fresh fruit juice. These products give a strong competitionto Maaza and the latest product Minute Maid Pulpy Orange. 51
  52. 52. C HA P T E R 4: P R O D UC T SThe Coca-Cola Company offers a wide range of products to thecustomers including beverages, fruit juices and bottled mineral water.The Company is always looking to innovate and come up with, eithercomplete new products or new ways to bottle or pack the existingdrinks. The Coca-Cola Company has a wide range of products out ofwhich the following products are marketed by HCCBPL: In the Cola Section: 52
  53. 53. In the Lemon section:In the Orange section: 53
  54. 54. In the Juice section: In the Soda Water and Bottled Mineral Watersection: 54
  55. 55. In the Tonic Water section: 55
  56. 56. 4.1: PACKAGING DETAILS Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can,200 ml and 300 ml returnable glass bottles; 500+100 ml, 1.5 litre and2 litre PET bottlesCOCA-COLA: - 300ml 330ml can 200ml 600ml 1.5l 2l 56
  57. 57. Diet Coke: 330 ml can and 500 ml PET bottle 330 ml 500ml Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100ml and 1litre+200 ml free PET bottles and the newly introduced 200 mlTetra Pack 200 & 250ml 600ml 200ml tetra Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles 57
  58. 58. 1lt Schweppes Soda Water: 300ml RGB 330 ml cans, 1lt PETbottles 330 ml cans, 1lt pet 300ml Schweppes Mineral Water: 330ml cans 750 ml PET bottles 58
  59. 59. 330ml cans 750 mlSchweppes Tonic Water: 355 ml can 355 ml 1lt 59
  60. 60. Kinley Soda Water: 300 ml returnable glass bottles, 500+100ml free and 1.5 litre PET bottles. 300,1.5lt.. 60
  61. 61. C HA P T E R 5:P R O J E C T _ _ ___ _ _ _ _ _ __ _ _ __ _ _ _ _ _ _ _ _ _ _5 . 1 S AL E S P R O MO T I O N5 . 1. 1 I NT R O D U C T I O N T O S AL E S P R O MO T I O N:MEANING:Sales promotion includes those sales activities, which supplementpersonnel selling and advertising. It is a direct inducement that offersextra value or incentive for the product. This incentive may bedirected towards the consumer or the trade. In other words, promotion stimulates the customer to makeprompt decision to purchase the product. It even influences them orprevents them from switching over to brands.Nature of the Sales Promotion:Marketing - Sales promotionSales promotion is the process of persuading a potentialcustomer to buy the product. Sales promotion is designed to beused as a short-term tactic to boost sales – it is not reallydesigned to build long -term customer loyalty. Some sales promotions are aimed at consumers. Othersare targeted at intermediaries (such as agents and wholesalers)or at the firm‟s sales force. When undertaking a sales promotion, there are severalfactors that a business must take into account:What does the promotion cost – will the resulting sales boostjustify the investment? Is the sales promotion consistent with the brandimage? A promotion that heavily discounts a product with apremium price might do some long -term damage to a brandWill the sales promotion attract customers who will continue tobuy the product once the promotion ends, or will it simply attractthose customers who are always on the look -out for a bargain?There are many methods of sales promot ion, including: 61
  62. 62. Money off coupons – customers receive coupons, or cut couponsout of newspapers or a products packaging that enables them tobuy the product next time at a reduced priceCompetitions – buying the product will allow the customer to takepart in a chance to win a prizeDiscount vouchers – a voucher (like a money off coupon)Free gifts – a free product when buy another productPoint of sale materials – e.g. posters, display stands – ways ofpresenting the product in its best way or show th e customer thatthe product is there.Loyalty cards – e.g. Nectar and Air Miles; where customers earnpoints for buying certain goods or shopping at certain retailers –that can later be exchanged for money, goods or other offers Loyalty cards have recently become an importantform of sales promotion. They encourage the customer to returnto the retailer by giving them discounts based on the spendingfrom a previous visit. Loyalty cards can offset the discounts th eyoffer by making more sales and persuading the customer to comeback. They also provide information about the shopping habits ofcustomers – where do they shop, when and what do they buy?This is very valuable marketing research and can be used in theplanning process for new and existing products.Sales promotion is one of the four aspects of promotional mix(The other three parts of the promotionalmix are advertising, personal selling, and publicity/public relations .)Media and non-media marketing communication are employed fora pre-determined, limited time to increase consumer demand,stimulate market demand or improve product availability. Examples:Include contests, coupons, freebies, lossleaders, point of purchase displays, premiums, prizes, productsamples, and rebatesSales promotions can be directed at the customer, sales staff,or distribution channel members (such as retailers). Sales promotions targeted at the consumer arecalled consumer sales promotions. Sales promotions targeted at retailersand wholesale are called trade sales promotions. Many considersome sale promotions, particularly ones with unusual methods,gimmicks. 62
  63. 63. Sales promotion includes several c ommunications activities thatattempt to provide added value or incentives to consumers,wholesalers, retailers, or other organizational customers tostimulate immediate sales. These efforts can attempt to stimulateproduct interest, trial, or purchase. Ex amples of devices used insales promotion include coupons, samples, premiums, point -of-purchase (POP) displays, contests, rebates, and sweepstakes. S a l e s eP r o mo mon i o n Sal s Pr otio tConsumer sales Trade sales promotions promotions5.1.2 Consumer sales promotion techniquesPrice deal: A temporary reduction in the price, such as happy hourLoyal Reward Program: Consumers collect points, miles, or creditsfor purchases and redeem them for rewards. Two famousexamples are Pepsi Stuff and AAdvantage.Cents-off deal: Offers a brand at a lower price. Price reductionmay be a percentage marked on the package.Price-pack deal: The packaging offers a consumer a certainpercentage more of the product for the same price (for example,25 percent extra).Coupons: coupons have become a standard mechanism for salespromotions.Loss leader: the price of a popular product is temporarilyreduced in order to stimulate other profitable salesFree-standing insert (FSI): A coupon booklet is inserted intothe local newspaper for delivery.On-shelf couponing: Coupons are present at the shelf where t heproduct is available.Checkout dispensers: On checkout the customer is given acoupon based on products purchased.On-line couponing: Coupons are available online. Consumersprint them out and take them to the store. 63
  64. 64. Mobile couponing: Coupons are available on a mobile phone.Consumers show the offer on a mobile phone to a salesperson forredemption.Online interactive promotion game: Consumers play aninteractive game associated with the promoted product. See anexample of the Interactive Internet Ad for tomato ketchup.Rebates: Consumers are offered money back if the receiptand barcode are mailed to the producer.Contests/sweepstakes/games: The consumer is automaticallyentered into the event by purchasing the product.Point-of-sale displays:-Aisle interrupter: A sign that juts into the aisle from the shelf.Dangler: A sign that sways when a consumer walks by it.Dump bin: A bin full of products dumped inside.Glorifier: A small stage that elevates a product above otherproducts.Wobbler: A sign that jiggles.Lipstick Board: A board on which messages are written in crayon.Necker: A coupon placed on the neck of a bottle.YES unit: "your extra salesperson" is a pull -out fact sheet.Electroluminescent: Solar -powered, animated light in motion.Kids eat free specials: Offers a discount on the total dining bill byoffering 1 free kids meal with each regular meal purchased.Trade sales promotion techniquesTrade allowances: short term incentive offered to induce aretailer to stock up on a product.Dealer loader: An incentive given to induce a retailer topurchase and display a product.Trade contest: A contest to reward retailers that sell the mostproduct.Point-of-purchase displays: Used to create the urge of"impulse" buying and selling your product on the spot.Training programs: dealer employees are trained in selling theproduct.Push money: also known as "spliffs". An extra commission paidto retail employees to push products.Trade discounts (also called functional discounts): These arepayments to distribution channel members for performing somefunction. 64
  65. 65. .5.2 Sales Promotion Strategies:There are three types of sales promotion strategies: Push, Pull, ora combination of the two.A push strategy involves convincing trade intermediary channelmembers to "push" the product through the distribution channelsto the ultimate consumer via promotions and personal sellingefforts. The company promotes the product through a reseller whoin turn promotes i t to yet another reseller or the final consumer.Trade-promotion objectives are to persuade retailers orwholesalers to carry a brand, give a brand shelf space, promote abrand in advertising, and/or push a brand to final consumers.Typical tactics employe d in push strategy are: allowances, buy -back guarantees, free trials, contests, specialty advertising items,di scounts, displays, and premiums.A pull strategy attempts to get consumers to "pull" the productfrom the manufacturer through the marketing channel. Thecompany focuses its marketing communications efforts onconsumers in the hope that it stimulates interest and demand forthe product at the end -user level. This strategy is often employedif distributors are reluctant to carry a product because it gets asmany consumers as possible to go to retail outlets and requestthe product, thus pulling it through the channel. Consumer -promotion objectives are to entice consumers to try a newproduct, lure customers away from competitors‟ products, getconsumers to "load up" on a mature product, hold & reward loyal 65
  66. 66. customers, and build consumer relationships. Typical tacticsemployed in pull strategy are: sampl es, coupons, cash refundsand rebates, premiums, advertising specialties, loyaltyprograms/patronage rewards, contests, sweepstakes, games, andpoint-of-purchase (POP) displays.Car dealers often provide a good example ofa combination strategy. If you pay attention to car dealersadvertising, you will often hear them speak of cash -back offersand dealer incentives.5 . 3: O BJ E C T I V E O F T HE S T UD YThe main objective of this study lies in studying andunderstanding the present offers and schemes providing by theCoca-Cola and how much retailer satisfying with present offers. 66
  67. 67. C H A PT E R 6 ME T H O DO L O G Y_ _ _ _ _ _ _ _ __ _ _ _ __ _ _ _ _ _ _ _6.1 RESEARCH METHODOLOGY6.2 DATA ANALYSIS6 .1 RE S E AR CH M E T H O DO L O G YThis research involved a study, which was descriptive as wellas explorative in nature it basically aims at gathering dataabout how the coca-cola scheme playing in the mind ofshopkeepers & consumer.M E T HO D S O F D AT A C O L L E C T I O N:THERE ARE TWO TYPES OF DATA1. Primary data2. Secondary data1) Pr i ma r y data collection : P r i ma r y data can bec o l l e c t e d b y t h r e e me t h o d s .a) Observationb) E x p e r i me n tc) S u r v e ys 67
  68. 68. But here, only surveys method of data collection is preferred which is very suitable to reach the researcher motto. A. Research instrument: Printed Questionnaire was used as the research instrument to collect the required information. B. Area of surveys: The survey was conducted in different location of Vizag city. S a mp l i n g p l a n : s a mp l i n g p l a n c o n s i s t s o f I. S a m p l in g u n it : T h e r e t a i l e r o f G r o c e r y s h o p , g e n e r a l store, betel shop, and medicine store was selected from different places of Vizag. II. S a m p l in g s iz e : 2 0 0 O u t l e t s .III. S a m p l in g p r oc ed u r e : Simple random sampling procedure was followedI V. S a m p l in g m et h od : D a t a w e r e c o l l e c t e d b y r e t a i l e r survey. The retailers are directly contacted and interviewed at their retail counter. 2 ) S ec on d a r y d a t a c ol l ec t ion : A s s e c o n d a r y d a t a w e r e not available with shopkeepers as well as stockiest, so these were collected from company records. 68
  69. 69. 6 . 2 ANA L Y S I S O F D AT ADATA ARE COLLECTED FROM DIFFERENT LOCATION OF VIZAG LIKE: 1. Kancharapalem 2. Akkayapalem 3. H.B.Colony 4. Rushikonda 5. Mithilapuri Colony 6. P.M.Palem 7. Madhurawada 8. Carshed 9. Pendurthi 10. Chinamushidiwada 11. Gopalapatnam 12. N.A.D 13. Marripalem And few more places… 69
  70. 70. S UR V E Y ANA L Y S I S T HE SURVEY WAS C O ND U C T E D IN D I F F E R E NTL O C AT I O N OF V I Z AG. A T O T AL S UR V E Y OF 2 00O UT L E T S WA S C O ND UC T E D .O BS E R V AT I O N1. I visited about 200 outlets.2. Out of 200 shops covered in different areas, I focused oncovering different shops according to location, so that I canknow where coca-cola products have the best penetration.Among the shop covered, 17% were on the chaurastha, 35%were on the main road, 28% in the market and 20% werenear a residential area.3. I assigned the various shops covered into differentcategories. The various categories covered were Grocery,Confectionary, Bakery, Juice Shops, Ice Cream parlors,Restaurant, Food Points, P.C.O , Dairy, and Pan Shops. 70
  71. 71. 6 . 3 F I ND I NG S1. Which type of promotions do you like?A) Volume Linked SchemesB) Cash Discount SchemesC) Gifts on Target Achievement 5 25 A B C 65Interprtation:As per the above question most of the retailers like cash discountson their each purchase from the company. In my survey most ofthe outlets are groceries so their sale is limited when there is noneed of more volume they don‟t want other two schemes. So as per my study if company want to launchscheme better it should be a cash discount type. 71
  72. 72. 2. Are you receiving sufficient display material fromcoke?A) Yes B) No 25 A B 75Interpretation:For this question most of the retailer‟s complainting about they arenot receiving any kind of display materials very few are satisfyingwith our display materials so company should concentrate aboutdisplay. 72
  73. 73. 3.Which type of premiums do you like? A) Luggage bags B) Kitchen ware C) Accessories D) Cash Voucher 5 2 5 A B C D 88Interpretation:Like as a 1st question most of the retailers like Cash Vouchers onlyafter that they preferred Luggage bags and Kitchenware . 73
  74. 74. 4. Are you getting all the discounts or prizes as percompany promised?A) Yes B) No 30 A B 70Interpretation:Maximum retailers said no.Example: Consumer having RGB in outlet and he getsomething on backside of the crown that is not gettingfrom the company this was the major complaint from theretailer. 74
  75. 75. 5. Comparing with others how is coke promotion plans?A) Very Good B) Good C) Bad D) Worst 5 2 5 A B C D 88Interpretation:To say frankly coke does not providing good promotions toretailers as well as to the customer so major of the peoplewere said against to the company. 75
  76. 76. 6. What are the peak selling hours of this outlet? A) 10am-1pm B) 2pm- 6pm C) 6pm-10pm D) Any other 10 30 A B C D 50 10Interpretation:Coming to the peak hours actually it dependes on the typeof the outlet and its location as per my survey major peakhours are 10am to 1pm between and again 6pm to 10pmbetween remaining time there is no that much customervisit so sale was down in the remaining hours. 76
  77. 77. 7) Which is the most selling pack in your outlet? 5 Coca Cola Thumsup 20 3 10 Sprite Maaza 55 30 Fanta LimcaInterpretation:Coming to most selling brand in Vizag city Thumsupoccupied major market more then half percentage of marketshare is grabed by Thumsup only after that Sprite is the 2 ndmajor selling brand from the coke after those Limca andMaaza listed. 77
  78. 78. 8. Are consumers satisfied with the variety of packsoffered? A) Yes B) No 2 A B 98Interpretation:What ever the present varieties coke had in the marketwith those consumers are very much happy. For thisquestion maximum people said yes. Coke getting moreappreciation in this concept. 78
  79. 79. 9. Which pack sells the most?A) Glass bottle B) PET bottleC) CAN D) Tetra 3 7 A B 30 60 C DInterpretation:Coke got the big market from RGB and PET bottles. Thattoo in RGB sector 200ml was the most selling pack. Comingto PET bottles all have the equal share but 600ml was littlebit high sale when comparing with 1ltr 1.5ltr and 2ltr paks. 79
  80. 80. 10. Which companies signage do you have at youroutlet?A) Coca Cola B) PepsiC) Own D) Other 10 20 10 A B C D 60Interpretation:In this category coke stands in a bad position coke notproviding sign boards in this signage section others andowned boards are more. 80
  81. 81. 11. Which companies visi -cooler do you have in youroutlet?A) Coca Cola B) PepsiC) Own D) Both 15 5 A B 20 60 C DInterpretation:Coming to visi coolers coke doing well job almost 60% ofthe outlets are using coke coolers only. Even customer gota chance where he can choose directly from our cooler. 81
  82. 82. 6 . 4 S U GGE S T I O NS :Taking the above analysis into consideration, the following points canbe regarded for further sales promotion: Present coca-cola offers are very much limited so needimprovement on schemes. In some areas our service was little bit down likegopalapatnam, simhachalam railway stn areas… When comparing with Pepsi retailer offers very much less inCoke, to keep them Coke need a better plans. Some times Coke does not meeting market required supply. More promotional offers have to be introduced Market developers should be given some amount which can be used to provide creditfacility to some retailers. Market developers and sales people should work together Install Fountain Machine at different locations. It will be helpful in generating impulsepurchase and also as awareness about the products of the company among the consumers Many customers prefer to have coffee or tea so Coca-Cola can launch its Georgiacoffee vending machines. As many retailers are having either Nestea or other this will be asuccess. The Company employees should make direct contact with the consumers, so that theymay aware with real situation of the market and consumers attitude towards the product.For this they can arrange awareness camps in different locations. Delivery should be done more quickly. Gifts should be given to certain retailers who sells large quantities of goods. 82
  84. 84. BI BI L O GR AP HYReference:Books AuthorsMarketing Research :Naresh MalhotraMarketing Management :Philip KotlerResearch Methodology :C. R. KothariDATA SOURCESWebsites 84
  85. 85. A NNE X UR E Questionnaire HINDUSTAN COCA-COLA BEVERAGES PVT.LTD QUESTIONNAIRE ON SALES PROMOTIONArea :Outlet Name :Outlet Type : Convenience/ Grocery/Eat & DrinkKO/PC/Shared:Phone no. :1. Which type of promotions do you like?A) Volume Linked SchemesB) Cash Discount Schemes C) Gifts on Target Achievement2. Are you receiving sufficient display material fromcoke?A) Yes B) No3. Which type of premiums do you like?A) Luggage bags B) Kitchen wareC) Accessories D) Cash Voucher4. Are you getting all the discounts or prizes as percompany promised?A) Yes B) No 85
  86. 86. 5. Comparing with others how is coke promotion plans?A) Very Good B) GoodC) Bad D) Worst6. What are the peak selling hours of this outlet? A) 10am-1pm B) 2pm- 6pm C) 6pm-10pm D) Any other7. Which is the most selling pack in your outlet?Note: Brand -Size -8. Are consumers satisfied with the variety of packsoffered? A) Yes B) No9. Which pack sells the most?B) Glass bottle B) PET bottleC) CAN D) Tetra10. Which companies signage do you have at youroutlet?B) Coca Cola B) PepsiC) Own D) Other11. Which companies visi -cooler do you have in youroutlet?B) Coca Cola B) PepsiD) Own D) Both12. Which age group is associated with brands?A) Coca Cola B) ThumsUpC) Sprite D) MaazaE) Fanta F) Limca13. Any improvement you want in our service?Note: 86