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A SUMMER INTERNSHIP PROJECT REPORT ON
“MARKETING STRATEGIES OF PREMIUM PRODUCTS OF
COCA COLA”
SUBMITTED TO:
DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW
A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF MBA PROGRAM (2018-20)
UNDER THE SUPERVISION OF
Dr. PRABHAT KUMAR DWIVEDI
ASSOCIATE PROFESSOR
STEP-HBTI
SUBMITTED BY:
VIJAY SHANKAR SINGH
MBA II YEAR (2018-20)
ROLL NO. 1818170092
SCIENCE AND TECHNOLOGY ENTREPRENEUR’S PARK
HARCOURT BUTLER TECHNOLOGICAL INSTITUTE
NAWABGANJ, KANPUR (U.P.) – 208002
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TO WHOMSOEVER IT MAY CONCERN
This is to certify that VIJAY SHANKAR SINGH is bonafide students of Masters in
Business Administration, (2018-2020) in Science and Technology Entrepreneurs Park -
Harcourt Butler Technological Institute, Kanpur with dual specialization in MARKETING
& FINANCE affiliated to Dr. A.P.J. Abdul Kalam Technical University has successfully
completed the SUMMER INTERNSHIP PROJECT WORK entitled as “MARKETING
STRATEGIES OF PREMIUM PRODUCTS OF COCA COLA”.
This study is done under the guidance of the undersigned for the partial fulfilment of the
requirement of Master of Business Administration.
I hereby certify his work excellent/good/satisfactory to the best of my knowledge. I wish
all the best future ahead.
Mentor: Dr. Prabhat Kumar Dwivedi Academic Incharge: Dr. Satish Chandra Ojha
(Associate Professor) (Assistant Professor)
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ACKNOWLEDGEMENT
In any project one has to take cooperation and assistance of many people. It is difficult to
mention all of them. However, it is necessary to quote some of them who provided initial
support and assistance and having completed the project. It is indeed a great moment of
pleasure to express my sense of profound gratitude & indebtedness to all the people who
have been instrumental in making it a rich experience. I found it to be a challenging project
that gave me a real practical exposure to the corporate world and it is almost impossible to
do the same without the guidance of peoples around me. Specifically, the summer training
of from 6th
of June to 31th
of July that is generally termed as the partial fulfilment of my
MBA program holds extreme importance for my whole career. It gives me immense
pleasure to acknowledge HINDUSTAN COCA COLA BEVERAGES PVT Ltd., which
has been nice enough to give me a chance to do my summer training and providing me
wonderful support throughout my training period and afterward.
I am grateful to Mr. NAVEEN BAHADUR (TRAINER HEAD) for giving me a chance to
do my summer training in HINDUSTAN COCA COLA BEVERAGES PVT Ltd. INDIA.
I am grateful to Mr Sanjeev Singh (S.T.L., Sales) have learned the meaning of marketing
and professionalism from this great personality.
I also owe my regards to Friendship Enterprises (Distributor), Kanpur for their co-
operation in the successful completion of the project. I am also grateful to my internal
project guide Dr Prabhat Kumar Dwivedi, STEP-HBTI Kanpur, for giving his guidance
throughout my training project. The entire experience has been very encouraging and will
certainly help me stand in good stead throughout my career in future. I am also thankful to
my college coordinator, Dr. Manoj Kumar Shukla and whole STEP-HBTI family for giving
me chance to get such an experience and giving me chance to get an industrial experience.
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DECLARATION
I hereby declare that the project entitled “MARKETING STRATEGIES OF PREMIUM
PRODUCTS OF COCA COLA” submitted to SCIENCE AND TECHNOLOGY
ENTREPRENEUR’S PARK, KANPUR affiliated to DR. A.P.J. ABDUL KALAM
TECHNICAL UNIVERSITY, LUCKNOW is partial fulfilment of the requirement for the
degree of MBA.
I declare that this Summer Training Report is my original and not submitted to any other
universities before.
Vijay Shankar Singh
MBA II Sec- B
STEP-HBTI
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CERTIFICATE BY THE INSTITUTE
This is to certify that the project titled “MARKETING STRATEGIES OF PREMIUM
PRODUCTS OF COCA COLA” is an academic work done by “Vijay Shankar Singh”
submitted in the partial fulfilment of the requirement for the award of Degree of MBA
(Marketing & Finance) form A.K.T.U. Technical University, Uttar Pradesh.
It has been completed under the guidance of Dr. Prabhat Kumar Dwivedi (Faculty Guide)
and Mr. Naveen Bahadur (Corporate Mentor).
I am thankful to HINDUSTAN COCA COLA BEVERAGES PVT Ltd. for having allowed
to me to undergo project work training. The authenticity of the project work will be
examined by the viva examiner which includes data verification, checking duplicity of
information etc. and it may be rejected due to non-fulfilment of quality standards set by the
institute.
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PREFACE
The professional degree course MBA (Masters in Business Administration) is not just
confined to theoretical learning but it is far beyond that. It lays more emphasis on acquiring
practical knowledge. Without practical learning, management studies go meaningless.
Practical training is provided to the management students so that they can get an exposure
to the working environment of an organization.
The summer training is an integral part of the course curriculum of Master of
Business Administration. These trainings provide a framework of knowledge relating
to the concepts and practices of the assigned topics in the organization. Each student is
required to undergo practical training of about 6-8 weeks after completion of 2nd
Semester.
After the internship period, the student is in the position to analyse the integral
working of an organization and understand the dynamics in a better way.
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CONTENTS
1. Executive Summary 9
2. Industry Profile 11
3. Profile Company 15
4. Products Profile 37
5. Objectives 44
6. Research Methodology 47
7. Data Analysis & Interpretation 58
8. Findings & Observations 75
9. Recommendations 78
10. Limitations 81
11. Main Key Points 83
12. Questionnaire 85
13. Bibliography 90
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Executive Summary
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EXECUTIVE SUMMARY
This report has been prepared with a specific purpose in mind. It outlines the history and
current scenario of the Coca-Cola Company globally and locally. The first part of the study
takes us through the present state of affairs of the beverage industry and Coca-Cola
Company globally.
The report contains a brief introduction of Coca Cola Company and Coca-Cola India and
a detailed view of the tasks, which have been undertaken to analyse the market of Coca-
Cola i.e. we have performed Competitive, PESTLE and SWOT analysis of Coca-Cola
Company and PESTLE and SWOT analysis of Coca-Cola India in order to identify areas
of potential growth for Coca-Cola. We have also given a brief description of Trends and
Forces that are affecting Coca-Cola Company globally.
The main objective of this project report is to analyse and study in efficient way the current
position of Coca- Cola Company. The study also aims to perform Market Analysis of Coca-
Cola Company & find out different factors effecting the growth of Coca-Cola. Another
objective of the study was to perform Competitive analysis between Coca-Cola and its
competitors. Apart from these objectives this study is also conducted to understand the
Customer preferences towards various Coca-Cola products.
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INDUSTRY PROFILE
A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA
Fast Moving Consumer Goods (FMCG), also known as Consumer-Packaged Goods (CPG)
are products that have a quick turnover and relatively low cost. Consumers generally put
less thought into the purchase of FMCG than they do for other products.
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.
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. 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.
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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.
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.
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 cr. 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 cr. The sector being one of the biggest sectors of the Indian
Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular)
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A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA
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.
Fig 2.0 BEVERAGES IN INDIA
The beverage industry is vast and their various ways of segmenting it, so as to cater the
right product to the right person. The different ways of segmenting it is as follows:
❖ Alcoholic, non-alcoholic and sports beverages.
❖ Natural and Synthetic beverages.
❖ In-home consumption and out of home on premises consumption.
❖ Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
❖ Segmentation based on the amount of consumption i.e. high levels of
consumption and low levels of consumption.
BEVERAGES
ALCOHOLIC
NON-
ALCOHOLIC
CARBONATED
COLA NON-COLA
NON-
CARBONATED
NON-COLA
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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.
Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:
❖ The quality and the consistency of beverages needs to be enhanced so that
consumers are satisfied and they enjoy consuming beverages.
❖ The credibility and trust need to be built so that there is a very strong and safe
feeling that the consumers have while consuming the beverages.
❖ 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.
❖ Communication should be relevant and trendy so that consumers are able to find
an appeal to go out, purchase and consume.
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.
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COMPANY PROFILE
Coca-Cola Enterprises, established in 1886, is a young company by the standards of the
Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-
Cola that is the foundation for this Company.
The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr.
John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However,
the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F.
Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola
for most of the United States from The Coca-Cola Company.
The Coca-Cola bottling system continued to operate as independent, local businesses until
the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola
Company merged some of its company-owned operations with two large ownership groups
that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling
holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public
on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total
unit case sales were 880,000 in 1986.
In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola
Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping
accelerate bottler consolidation. As part of the merger, the senior management team of
Johnston assumed responsibility for managing the Company, and began a dramatic,
successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total
revenues were $5 billion. The Coca-Cola Company is the world’s largest beverage
company. They operate in more than 200 countries & markets more than 2800 beverage
products. Headquartered at Atlanta, Georgia, they employ approximately 90500 employees
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all over the world. It is often referred to simply as Coke or (in European and American
countries) as Cola or Pop.
MISSION, VISION AND VALUES
The world is changing all around us. To continue to thrive as a business over the next ten
years and beyond, we must look ahead, understand the trends and forces that will shape
our business in the future and move swiftly to prepare for what's to come. We must get
ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term
destination for our business and provides us with a "Road map" for winning together with
our bottling partners.
Our Mission
Our Road map starts with our mission, which is enduring. It declares our purpose as a
Company and serves as the standard against which we weigh our actions and decisions.
• To refresh the world...
• To inspire moments of optimism and happiness...
• To create value and make a difference
Our Vision
Our vision serves as the framework for our Road map and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
• People: Be a great place to work where people are inspired to be the best, they can
be
• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people’s desires and needs
• Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value
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• Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities
• Profit: Maximize long-term return to share owners while being mindful of our
overall responsibilities
• Productivity: Be a highly effective, lean and fast-moving organization
Our Winning Culture
Our Winning Culture defines the attitudes and behaviours that will be required of us to
make our 2020 Vision a reality.
Live Our Values
Our values serve as a compass for our actions and describe how we behave in the world.
• Leadership: The courage to shape a better future
• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it’s up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well
Focus on the Market
• Focus on needs of our consumers, customers and franchise partners
• Get out into the market and listen, observe and learn
• Possess a world view
• Focus on execution in the marketplace every day
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• Be insatiably curious
Work Smart
• Act with urgency
• Remain responsive to change
• Have the courage to change course when needed
• Remain constructively discontent
• Work efficiently
Act Like Owners
• Be accountable for our actions and in actions
• Steward system assets and focus on building value
• Reward our people for taking risks and finding better ways to solve problems
• Learn from our outcomes -- what worked and what didn’t
Be the Brand
• Inspire creativity, passion, optimism and fun
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COCA-COLA WORLDWIDE (BACKGROUND)
The Profile
The Coca-Cola Company is the global Soft drink industry leader, with world headquarters
in Atlanta, Georgia. The company and its subsidiaries employ nearly 30,000 people around
the world Syrups, concentrates and beverages bases for Coca-Cola, the company’s flagship
brand, & over 160 other Company Soft Drink brands are manufactured and Sold by the
Coca Cold Company and its Subsidiaries in nearly 200 countries around the world. In fact,
approximately 70% of company volume and 80% of company profit come from outside
the United States.
By contract with the Coca-Cola Company on its local subsidiaries, local businesses are
authorized to bottle and sell company soft drinks within certain territorial boundaries and
under conditions that ensure the highest standards of quality and uniformity.
The Coca-Cola takes pride in being a worldwide business that is always local. Bottling and
distribution operations are, with some exception, locally owned and operated by
independent business people who are native to the nations in which they are located.
The Coca-Cola company stock, with ticker symbol KO2 is listed and traded in the United
States on the New York stock exchange, common stock also is traded on the on the Boston,
Chicago, Pacific a Philadelphia Exchanges Outside the United States, Company common
stock is listed and traded on common and swiss exchanges.
The Company operating management structure consists of five geographic groups:
1. The North America Group Comprises the United States and Canada.
2. The Latin American group includes the Company’s operations across Central and
South American from Mexico to Argentina.
3. The Company’s most populated operating group, the Middle and far east group, ranges
from the Middle East to India, China, Japan and Australia.
4. The greater Europe group stretches from Greenland to Russia’s far east, including some
of the most established markets in Western Europe and the rapidly growing nations of
Eastern and Central Europe.
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5. The Africa group includes the Company’s business in 50 countries in Sub Sahara
Africa.
The Coca-Cola Company continues to activate sponsorships throughout the world
including associations with World Cup Soccer. The National Football leagues. NASCAR,
the Tour de France, the Rugby World Cup, COPA America and numerous local sports
teams. The Coca-Cola Company has sponsored the Olympic games since 1928.
COCA COLA IN INDIA
Coke gained an early advantage over Pepsi since it took over Parle in 1994. Thus, it had
ready access to over 2,00,000 retailer outlets and 60 bottlers.
Thus, Coke had greater than Pepsi because it had ready access to the Parle network. For
example, in 1994 Pepsi had 20 bottlers to serve the entire country while Coke had Parle’s
60 bottlers. In an important market like Delhi Pepsi had just one bottler while Coke had
four. On the other hand, Pepsi had taken over the Dukes Mangola of Mumbai.
In 1993, Pepsi Foods Ltd. had control over the Rs. 1,100 - Crore Indian Soft Drinks market.
At that time, the soft drinks tycoon Ramesh Chauhan, was heading the Parle group and at
that time was deciding to explore the possibility of selling his best rolling brands to Coke,
rather than to Pepsi. Pepsi had entered the market 3 years before Coke did. Before the
Coke-Parle tie-up in '93- Ramesh Chauhan had 2 options before him- (1) to stick around,
fight it out again and hopefully, continue with his number one position. (2) to sell out to
Coca-Cola for a good return. This risk of losing out to one of the multinationals,
eventually, seemed to be throwing up the second alternative. Ramesh Chauhan told
business world (India's most popular business magazine) that "it is better to seek a
compromise than to fight a lone battle". But he was wisely simultaneously taking steps to
safeguard his market share. In a few months, Parle's products will be launched in 250 ml
instead the current 200 ml. The indications are that the company will hold the price line.
Incidentally, both Pepsi and Coke (if it finally gets in) will cost more than local brands
because of the 300% duly on the imported ingredients. However, this scenario was taking
place pre-liberalization period and hence implied a very high duty on imported items.
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Entry of Pepsi and Coke in India or their proposals were at that time being opposed because
of the impact of first - strike on the minds of consumers. If Coca-Cola is allowed an easy
and quick entry through a window established by the government, there can be no
justification for denying similar access to Pepsi Co.
Basically, what was wrong at that time with the Coke proposal was that while the Pepsi
deal could go through under the camouflage of horticultures and agriculture development
as their proposal stated, a pure soft drinks project was not so politically palatable (as it
would greatly hamper the indigenous industry).
Coke had plans, to invest $ 20 million in India and Pepsi was going to pump in Rs. 300
crores more. Ramesh Chauhan greatest compulsion, to 90 in for the 2nd option was that
many of his biggest bottlers were preparing to desert him for Coke, since the bottlers
accounted for nearly one-third of Parle's sales. Parle's biggest bottles in the Easter region,
Goenka, accounted for 80% market share in Calcutta, felt that the future lay with Coca-
Cola, no Indian company had the financial muscle to take on Coke.
Also, there was the most convincing factor for the tie-up, that Parle's Position in the Indian
soft drinks market and Coca-Cola's marketing strengths and experience would make an
unbeatable combination. At that time according to the world’s most popular and well-
known magazine, Fortune, had rated Coke as the world's best brand. Even Coke would
greatly benefit from the tie-up, as Coke with Parle’s wide spread bottling and distribution
network, which was spread over more than a thousand towns and cities and the gradual
withdraw of Parle brand would ensure Coke would be the king. Parle's best known brands
include Thums Up, Limca, Citra and others were GOLD SPOT and Maaza.
The biggest advantage to Parle from the tie-up would be an instant gain of $ 40 million,
which could be used profitably in other ventures.
According to a report the deal was that, Parle Exports had transferred the rights of all its
reputed soft drinks brands to Coca-Cola company, USA. In short, Coca-Cola Company
became the exclusive owner of Thums Up, Limca, Gold Spot, Citra and Maaza and could
therefore, withdraw them from the market whenever it would want to.
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Under the agreement, the existing bottlers of Parle Exports would continue to produce Parle
brands under the licence from the Coca-Cola company. The U.S. Multinational proposed
to introduce its international brands -Coke, Fanta and Sprite at an appropriate time. The
Parle bottlers will be bottling these Coco - Cola brands also. The exact nature of Parle,
Coca-Cola tie-up is given below:
So, Ramesh Chauhan, sold his soft drink brands of the U.S. Multinational for ($ 40 million)
and is presently a major Coke bottler. Delhi - based Parle Chairman gave up his ownership
of his soft drinks brand (Thums Up, Limca, Citra and Gold Spot) and was awarded the
bottling franchisee for Delhi, Bombay, Surat and Ahmedabad. Coke depends on the 54
bottling plants which it was inherited from the Parle by out.
So, logically all brands of Parle as well as Coca-Cola will be marketed together. The only
problem being that Parle bottlers would not be able to meet the peculiar quality
requirements of Coke.
Coke + Parle
60%
Pepsi
26%
Pure Drinks
10% Others
4%
MARKET SHARES IN % FIGURES (2018 -19)
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Model of Brand Selection
• Customer buys on value
• Value equals quality relative to price
• Quality includes all non-price attributes that count in the purchase decision
▪ Product
▪ Customer service
• Quality, price and value, are not absolute, but relative to competitors.
Quality Product
Value Customer Service
Price
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ASSUMPTIONS
• Improvements in perceived quality in turn lead to high market share and market leaders
spend to build their franchise.
• Companies spend a larger share of their sales income on advertising and tend to be
much more profitable than companies that spend less.
• Brands that spend a much larger than average share of their sales on advertising earn
an average return on investment of 32% while brands that advertise much less than
their competitors average only 17%.
• Increases in advertising expenditure are closely correlated with gains in master share
(even after adjusting for the effects of other factors).
• Sales promotions like price-off, etc. has no significant correlation with market share
changes (only its effect on consumer behaviour is observed).
• To some extent companies with high, quality simply have more to say in their
advertising, so they are likely to spend more money saying it.
• Market-perceived quality is a more important measure of competitiveness than market
share for 2 bey reasons:
1. Most market leaders had to develop quality leadership to achieve their large share
position superior quality is the base upon which market leadership is usually built.
2. Generally according to data, business that begin with a large share of the market
tend to lose share. By contrast, those that begin with superior quality tend to hold
or gain share.
Therefore, market share is often a lagging indicator of a company's performance; quality
is the clear key to success.
Pepsi is a perfect example, since it came to India in 1989 with a market share of 0% it now
in 1998 enjoys a share of 45.2% in the market.
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But in case of soft drink, the 2 Cola giants Pepsi and Coke cannot to a great extent
differentiate on their brands (but of course in terms of taste and fizz), a lot has to be spent
on’ ads, packaging and promotion, i.e., making it more easily available.
However, recently in the world's famous business magazine, fortune, Coca Cola was rated
as the world's number one brand.
It must be noted that the brand also has to work in different ways from market to market.
A constant check on, brand management techniques, on the promotion of the brand, in a
consistent and robust manner, is essential for the brands future. One point where Coke
scores over Pepsi has been in production and distribution system internationally and
nationally (because of access to Parle's distribution network) which ensures the product
reaches the consumers in perfect condition.
The advertising message that is conveyed to the people in the advertising slogan "Always
the real thing" (1993), is a credible statement about the brand's virtues. What reinforces
this conviction amongst, consumers, apart from the reassurance provided by the consistent
quality of the Coca Cola product, is that competitive brands all seek to emulate Coca Cola.
There is very little attempt on their part to create a distinctive positioning and personality
for their brands. A vast complex network of production, distribution and marketing has
kept the brand in front.
Coca Cola has entered new markets and also developing market economics (like India)
with much-needed jobs.
Coke attributes its success to bottlers, the Coca Cola system itself, i.e., its executive
committees, employees, BOD, company presidents but above all from the consumer.
Coke's red colour catches attention easily and also the Diet Coke which it introduced was
taking the Cake, as Pepsi has not come out with this in India.
Ever since Coke's entry in India in 1993, Coke made a comeback (after quitting in 1977),
in October 24 in Agra, the city was flooded by trucks, there wheelers, tricycle cards-all
with huge red Coke-emblazoned umbrellas. Retailers were displaying their Coke bottles
in distinctive racks, also with specially-designed iceboxes to keep Coke bottles cold. This
was one big jolt to Pepsi.
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MARKETING MIX
WHAT IS A MARKETING MIX?
It is a set of controllable tactical marketing tools - product, price, place & promotion - that
the firm blends to produce the response it wants in the target market.
THE FOUR PS OF THE MKT’S MIX
Effective marketing would be blending the marketing mix elements into a coordinated
programme designed to achieve the company’s marketing objective by delivering value to
consumers.
Cola - Cola has always worked upon their marketing mix tools since its entry into India
and Coke’s objective has been to strengthen their brand in important segments of the
market and to gain a competitive edge over Pepsi brands.
PRICE
List Price
MRP
Discounts
Allowances
Pay Period
CR Terms
PRODUCT
Product Variety
Quality
Designs
Features
Brand name
Packaging
Sizes
Services
Warranties
Returns
PROMOTION
Advertising
Personal Selling
Sales Promotion
Public Relation
PLACE
Channels
Coverage
Assortments
Locations
Transportation
Logistics
TARGET
CUSTOMERS
INTENDED
POSITIONING
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MARKETING MIX OF COKE
PRODUCT
Coke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian
launch of its Cola. at the sparking new bottling plants at Hathra, near Agra. Coke was back
with a bang after its exit in 1977.
Coke was planning to launch in next summer the orange drink, Fanta-with the clear lemon
drink, sprite, following later in the year.
Coke already owns more brands than it will over need, since it has bought out Ramesh
Chauhan. Coke just needs to juggle these brands around dextrously to meet its objectives,
to ensure that Pepsi does not gain market share in the process.
For if a vacuum develops, it is Pepsi which has the brand muscle and the distribution
network to grab customers today-not Coke. But Coke could not reduce its marketing
support for Thums Up until its own Cola would hit the four major metros (Delhi. Bombay,
Calcutta and Madras) Therefore, Coke had to give its existing levels of support for Parle's
brands and would push Thums Up and Limca. Coke has plans to' use quality and hygiene
as USPs. Their aim seems to be to expand market by market, Learning from their mistakes.
In, 1998 Coke's product line includes, Coca-Cola, Thums Up, Fanta, Gold Spot, Maaza,
Citra, Sprite, Bisleri Club Soda and Diet Coke.
PACKAGING
Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and different
packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. Bottle fountain Pepsi,
and bottles of 1 and 1.5 ltr
28
PRODUCT POSITIONING
One important thing must be noticed that Thums Up is a strong brand in western and
southern India, while Coca Cola is strong in Northern and Eastern India. With volumes of
Thums Up being low in the capital, there are likely chances of Coca Cola slashing the
prices of Thums Up to Rs. 5 and continue to sell Coca Cola at the same rate.
Analysts feel that this strategy may help Coke since it has 2 Cola brands in comparison to
Pepsi which has just one.
Thums Up accounts for 40% of Coca Cola company's turn over, followed by Coca Cola
which has a 23% share and Limca which accounts for 17% of the turnover of the company.
(Thums up being the local drink, its share in the market is intact, forcing the company to
service the brand, as it did last year Mr. Donald short CEO, Coca Cola India, said that, "
we will be absolutely comfortable if Thums Up is No. 1 brand for us in India in the year
2005. We will sell whatever consumers wants us to". Coca Cola India has positioned
Thums up as a beverage associated with adventure because of its strong taste and also
making it compete with Pepsi as even Pepsi is associated with adventure, youth.
PORTER'S FIVE FORCES MODEL OF COCA COLA
BARGAINING POWER OF SUPPLIERS
29
Most of the ingredients needed for beverages and snacks are basic commodities such as
potatoes, flavour, colour, caffeine sugar, packaging etc. So the producers of these
commodities have no bargaining power over the pricing for this reason; the suppliers in
this industry are weak.
❖ Bargaining Power of Buyers
Buyers in this industry have the bargaining power, because main source of the
revenue and market share in beverage and food industry are fast food fountain,
convenience stores food stores vending etc. The profit margins in each of these
segments noticeably demonstrate the buyer power and how special buyers pay
diverse prices based on their power to bargain.
❖ Threat of New Entrant
There are many factors that make it hard for new player to enter the beverage
industry some of important factors are brand image and loyalty, advertising
expense, bottling network, retail distribution fear of retaliation and global supply
chain.
Brand Image / Loyalty
Pepsi and Coke continuously focusing on increasing their biggest beverage and
food products, they have built some of the globe’s strongest brands that are loved
by consumers throughout the world. Innovative Marketing has leveraged their
worldwide brand-building strength to attach with consumers in significant ways
and impel the growth globally. These all campaign results in high number of loyal
customers and strong brand equity throughout the world. In 2011, Coca-Cola was
declared the world’s most valuable brand according to Interbrand’s best global
brand. This makes it impossible for new entrance to enter the beverage
industry easily.
Advertising Spend
Cock and Pepsi has very effective advertising campaign, their advertising also
represent the cultures of different countries. They also sponsor different games and
teams and also featured in countless television programs and films. The marketing
30
and advertising expense were approximately $ 15 billion. This makes landscape
very harder for new players to succeed.
Bottling Network
Pepsi and Coca Cola have lived and exclusive contracts with bottler’s that have
privileges in all over the world. These franchise agreements or contracts forbid
bottler’s from keeping competitor’s brands. Coke has the world's largest beverage
distribution network; consuming in more than 200 countries enjoys the Coke’s
beverages at an average of nearly 1.6 billion servings a day. Coca-Cola is sold in
restaurants, vending machine and stores in more than 200 countries. PepsiCo has
adopted the globe’s most powerful “go-to-market systems”, serving more than 10
million outlets a week by operating greater than 100,000 different routes, and
producing more than $300 million in retail sales per day. They have also purchased
some of the bottlers, this makes difficult for new players to get bottler contracts or
to build their bottling plants.
Retail Distribution
Coke and Pepsi offers 16 to 21 percent margins to retailers for the space they
present. These margins are substantial for retailers and this makes it very hard for
the new player to persuade retailers to carry their products.
Fear of Retaliation
It is very difficult for new player to enter in this industry because; they will be
highly retaliating by local players in local markets and in global scenario they have
to face the duopoly of Coke and Pepsi. This ultimately could result in price war
which affects the new player.
Global Supply Chain
Cock Bill & Melinda Gates Foundation and non-profit Techno Serve initiated
partnership to facilitate more than 50,000 small fruit farmers in Kenya Uganda to
increase their productivity and double their incomes by 2014. Coke has significant
opportunities within global supply chain to encourage and develop more
sustainable practices to benefit consumers, customers and suppliers. While; it is
still in the premature stages of exploring these opportunities and dedicated to the
economic vitality and health of the farming communities our supply chain engages.
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Pepsi promotes and support sustainable agriculture not only because it makes good
business sense, it purchases million tons of potatoes and fruits.
❖ Threat of Substitute Products
Large numbers of substitutes are available in the market such as water, tea, juices
coffee etc. But firms counter them with innovative marketing and massive
advertising which build growth for their brands by highlighting their benefits.
Players also differentiate themselves by well-known global trade marks, brand
equity and availability of the products which most of the substitute products cannot
contest. To protect themselves from competition players in soft drink industry offer
Diversify products such as such as Pepsi offers soft drinks (Pepsi, Slice, Mountain
Dew), beverages (Tropicana Juices, Dole Juices, Lipton tea, Aquafina bottled
water, Sport drinks, Tropicana Juices), Snacks (Rold Gold pretzels and Frito-Lay).
Coke also offers most diversified range of products such as Cola-Cola Cherry,
Coca-Cola Vanilla, Diet Coke, Diet Coke Caffeine-Free, Caffeine-Free Coca-Cola
and range of lime or coffee and lemon.
❖ Competitive Rivalry within an Industry
Beverage industry competition can be classified as a Duopoly with Pepsi and Coca
Cola. The market share of other competitors is too low to encourage any price wars.
Cola-Cola gets competitive advantage through the well-known global trade marks
by achieving the premium prices. It means Cola-Cola have something that their
competitors do not have. While Pepsi has leveraged its worldwide brand-building
strength to attach with consumers in significant ways and impel the growth globally
32
PEST ANALYSIS OF COCA COLA COMPANY
As the leading beverages company in the world, Coca Cola almost monopolizes the entire
carbonated beverages segment. Beside it, Coca Cola also maintain their reputation as the
leading company in the world using PEST Analysis so that Coca Cola can examine the
macro-environment of Coca Cola’s operations.
Political
When Coca Cola had decided to enter a country to distribute the products, Coca Cola was
monitoring the policies and regulations of each country. For the example, when entering
Moslems country such as Indonesia or Malaysia, Coca Cola followed the regulation by
adding “Halal” stamp in each Coca Cola’s products. In this case, Coca Cola has no political
issues in this matter.
Economic
Coca Cola also has low growth in the market for carbonated beverages (North America).
The market growth was 1% in 2004. For stimulating the growth, Coca Cola had spent high
budget of advertisement to endorse the customers.
Social
Nowadays, customers tend to change their lifestyle. Customers more aware about health
consciousness by reducing in drinking carbonated beverages to prevent diabetes or other
diseases. As a result, Coca Cola’s demand for carbonated beverages has decreased and the
revenues also decreased. Thus, Coca Cola diversify the products by adding production lines
in tea (Nestea), juices (Minute Maid), mineral water (Dasani and Ades), and sport drinks
(Powerade), and others.
Technological
Because of the developing technology, Coca Cola has advanced technology in producing
the products. Then, Coca Cola made innovations by giving flavours to the Coke, such as
Cherry Coke, Diet Coke, Coca Cola Zero, Coke with Lime, and others. But the customers
still prefer the original taste of traditional Coke; it can be seen by the high demands in
traditional Coke.
33
SWOT ANALYSIS OF COCA-COLA INDIA
Fig 2.3 SWOT ANALYSIS OF COCA-COLA INDIA
STRENGTHES:
❖ 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 sale 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 to open bay three wheelers that can navigate
the narrow alleyways of Indian cities – constantly keep Coca-Cola brands available in
every nook and corner of the Country’s remotest areas.
STRENGTHES
Distribution Network.
Strong Brand Image.
Low Cost of Operation.
WEAKNESSES
Health Care Issues.
Small Scale Sector Reservations.
OPPORTUNITIES
Large Domestic Markets.
Export Potential.
High Income among People.
THREATS
Imports.
Tax & Regulatory Sector.
Slowdown in Rural Demand.
SWOT ANALYSIS
34
❖ STRONG BRAND IMAGE
Coke has its history of about more than a century and this prolonged sustenance has
definitely added to the brand image in the minds of the consumers and to its wallet. The
products produced and marketed by Coca-Cola India have a strong brand image.
Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the
brand name of Coca-Cola Company as a whole. Coca Cola India for the first time has come
out with corporate campaign in India targeting its stakeholders. The multimedia campaign
“Little Drops of Joy " is aimed at raising the corporate brand image of the company which
took a heavy beating with a number of controversies it faced in different domains.
The new campaign is a part of a complete restructuring exercise in the Indian arm of this
global change. Coca Cola recently announced its new corporate strategy called the “5
Pillar" strategy. The company has identified the 5 pillars as
• People.
• Planet.
• Portfolio.
• Partners.
• Performance.
❖ LOW COST OF OPERATIONS
In light of the company’s Affordability Strategy, Coca-Cola went about bringing a cost-
focus culture in the company. This included procurement Efficiencies – through focus on
key input materials, trade discipline and control and proactive tax management through
tax incentives, excise duty reduction and creating marketing companies. These measures
have reduced the costs of operations and increased profit margins.
WEAKNESSES:
❖ HEALTH CARE ISSUES
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
35
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.
❖ SMALL SCALE SECTOR RESERVATIONS
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.
OPPORTUNITIES:
❖ 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.
❖ 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.
36
❖ HIGHER INCOME AMONG PEOPLE
Development of India as a whole has led 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. Coca-Cola Company can take advantage of such a situation and enhance
their sales.
THREATS:
❖ 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.
❖ TAX & 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.
❖ 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.
37
PREMIUM PRODUCTS OF COCA-COLA INDIA
COCA-COLA: -
In India Coca-Cola was leading soft drink till 1977 when Government 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
remote and inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions
of India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho
Ho Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In
2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky
rocketed the brand to make it India’s favourite soft drink brand till present.
GLASS PET CAN FOUNTAIN
200ml, 500ml, 1.5L, 2L,
2.25L, 500ml,
330 ml VARIOUS SIZES
Table - 1.0
38
LIMCA: -
Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1
sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and
lemoni bite combined with the single-minded proposition of the brand as the provider of
“Freshness”. Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from
“Nimbu” + “Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and
has been the original thirst choice of millions of customers for over 3 decades.
GLASS PET CAN FOUNTAIN
200ml, 500ml, 1.5L, 2L,
2.25L, 500ml, 100ml
330 ml VARIOUS SIZES
Table - 1.1
THUMS UP: -
Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums
up is known for its strong, fizzy taste and it confident, mature and uniquely masculine
attitude. This brand clearly seeks to separate the men from the boys.
39
GLASS PET CAN FOUNTAIN
200ml, 300ml,
500ml, 1000ml
500ml, 1.5L, 2L,
2.25L, 500ml,
330 ml VARIOUS SIZES
Table - 1.2
SPRITE: -
Sprite a global leader in the lemon lime category is the second largest sparkling beverage
brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a
true teen icon.
RGB PET CAN FOUNTAIN
200ml, 300ml 500ml, 600ml,
1250ml, 2000ml,
2250ml
330 ml VARIOUS SIZES
40
FANTA: -
Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a
strong market place and is identifies 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.
GLASS PET CAN FOUNTAIN
200ml, 300ml 500ml, 1.5L, 2L,
2.25L, 500ml, 100ml
330 ml VARIOUS SIZES
Table – 1.4
MAAZA:-
Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit
of mangoes. Universally loved for its taste, colour, thickness and wholesome properties,
Maaza is the mango lover’s first choice.
41
RGB PET POCKET MAAZA
200ml, 250ml 250ml, 600ml, 1.2L 200ml
Table – 1.5
KINLEY: -
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 a part of everyday ritual or as the
monsoon which gives life to the sub-continent. Kinley water comes with the assurance of
safety from the Coca-Cola Company. Available in PET 500ml and 1000ml. across all major
metros in India.
MINUTE MAID SMOOTHIE: -
Coca-Cola India has added to its Minute Maid portfolio with the launch of a new smoothie,
as it aims to increase its healthy beverage offer. Called Minute Maid Smoothie, the product
has been designed to suit the Indian palate and respond to demands for a combination of
“nutritious goodness and taste”.
Containing fruit and milk, the beverage is currently available in a mango and banana
variant in 250ml bottles.
42
SMART WATER: -
Coca-Cola India Pvt. Ltd, the local unit of American beverages maker Coca-Cola Co., is
planning to launch its global enhanced water brand Glacéau Smartwater in India next
month. Glacéau Smartwater is vapour-distilled water with electrolytes added for taste.
Glacéau Smartwater, which is sold as a premium product globally and a popular bottled
water brand in the US, will be the fourth water brand to be launched by Coca-Cola in India.
The company entered the bottled water market in India with the launch of Kinley in 2000.
It extended the water portfolio in May 2016 with Bonaqua, followed by active hydration
beverage brand Aquarius in December 2016.
FANTA JUICY: -
Coca Cola India has introduced Fanta juicy a new variant of its orange flavored sparkling
beverage.
The new beverage contains real orange juice that will tingle taste buds with the Fanta fizz
that consumers have loved for years with content of 250 ml.
MONSTER ENERGY DRINK
Monster Energy is an energy drink introduced by Hansen Natural Company
(now Monster Beverage Corporation) in April 2002. There are 34 different drinks under
the Monster brand in North America, including its core Monster Energy line, Java Monster,
Extra Strength, Import, Rehab and Muscle Monster.
HCCB Takes over the distribution of monster energy drink in India.
SPRITY JUICY
Coca-Cola India Pvt. Ltd, the Indian unit of American beverage maker Coca-Cola Co.,
plans to launch fruit juice versions of its Sprite brands in the first half of this year, this is
the first time Coca-Cola is looking at bringing extensions of Sprite — its best-selling
carbonated beverage brand, —its third largest aerated drink brand.
43
The plan to introduce Sprite extensions comes just months after the American beverage
maker launched a variant of sprity — its largest-selling cola brand. The extension, Thumps
Up Charged, is a stronger version of the 40-year old cola brand. Sprity juicy contains of
250 ml.
44
OBJECTIVES OF THE
STUDY
45
The Project “Marketing Strategies of premium products of coca cola” was designed on
the lines of basic investment decisions to be taken by the senior officials of coca cola for
the purpose of amendments in the pre-existing distribution network in order to review and
strengthen the routes. The findings of the project are very crucial for the increment of the
market share of coca cola in the Kanpur Beverage Market.
Though the process is an ongoing one but the decisions have to be taken on a strong base,
supported by facts and figures and that too on papers. This support can only be provided
with the help of an extensive and through analysis of the market and the data collected
thereof.
The objectives of the project were delivered to us express sly by the Marketing
Development Co-ordinator who was the lead or the project head and we had to submit the
day report to him along with the draft report. He was the in charge of the project and gave
guidelines and directions to approach the project.
The objectives of the project are:
•
To understand and analyse the market in its raw and basic form.
• To gain an in-depth knowledge of the merchandising and processing activities of
the Route Agents and understand the Beverage market.
• To undertake the comparative study of the various brands and flavour packs of all
existing beverages or soft drinks market and the market share and growth potential
of each brand individually.
•
Comparative study of the various brands, packs and flavours available in the market
•
To ascertain the pricing strategy of premium products of coca cola & its competitor.
•
Assess the promotional measures in the context to the sales of COCA COLA and
focusing our study on the customer of company i.e., the retailers.
•
To study about the new product development of coca cola premium products.
46
As obvious that any company is concern with the increase in sales of its products, our
project was in line with the companies‟ objectives and all steps incorporate in the project
were directed to give an overview so as to attain its objectives.
The market research conducted by us was in accordance to the company’s rules and policies
which were quite material for the efficient and effective results and inferences to be drawn
from the entire process.
The market research was conducted in compliance of the given guidelines delivered to us
expressly to achieve the given objectives, which were as under:
1. Profitability 3. Improvement
2. Sales 4. To satisfy the customers
47
RESEARCH
METHODOLOGY
48
Research Methodology
1. Defining the problem:
To Analyse & check the implementation efficiency of Marketing Strategies of
premium products of coca cola in Kanpur.
2. Research
Descriptive Research- Descriptive research has been conducted as the primary data
was studied and analysed according to the need of the study.
3. Area Selected:
Survey was conducted in Kanpur City.
4. Sample Unit:
Each respondent was considered as a single unit in the survey.
5. Sample Size:
The sample size was done taking 100 units.
6. Collection of Data:
Mostly, the information which has been collected is primary in nature. Some
secondary data also have been extracted from the various websites, published
journals, magazines and newspaper.
7. Data Collection Method:
The method of data collection are questionnaire and survey method.
8. Data Analysis Method & Tools:
The data analysis instrument used for conducting the research is Tabulation, Bar
Chart, Line chart, Pie chart
49
The Market Research Process
The entire project was divided into four phases and each phase had its individual
significance and supplemented each other. The process had to be started from the grass
root level and it was very important to understand the market for this FMCG product, which
is very fast in production, distribution and consumption.
The four phases into which the project was divided were:
A. Route Riding
B. Retail Tracking
C. Corporate Tracking
D. Analysis of finding and observations
The entire process was more of a Descriptive Research type and incorporated a formal
study of the specific problems faced by most FMCG companies an exploring the
opportunities in the untapped market. The survey was conducted on the basis of PEPSI
product preference and evaluation of sales forecast in the new and underdeveloped market
including the evaluation of the advertising and promotional measures. The data collected
had to be systematically arranged, analysed and reported in a form congenial to take on the
spot decisions.
The observation approach was adopted in the process by gathering the data essential and
material for the decision-making and with clear objective of increasing the market share of
COCA COLA in the KANPUR market. Customer preferences and satisfaction was also
important in assessing the market share but that was very clear that customers generally do
not have loyalty towards the product in the Beverage industry rather what matters the most
is the product availability which will be discussed later.
50
All the phases mentioned above have been discussed along with the observations,
problems, and other dimensions which have been encountered and experience in detail in
the following pages.
A ROUTE RIDING
The Beverage Industry or to be more specific, the Soft Drinks Industry has one of the
most active networks in term of its production, supply, distribution, marketing,
consumption and also personal relations at the very second level of its distribution
network. That is the reason why it is sometimes said to be “Very Fast-Moving
Consumer Goods”.
Due to the above stated reason it becomes very essential to study and analyse the market
of these products from the grass root level. So in the Soft Drinks Company as PEPSI,
route riding becomes the first and foremost step in any of the activities to be undertaken
is it any official so we were no exceptions.
During the very initial days we were required to exercise Route Riding, the objective
of which was Route Riding is basically accompanying coca cola Vans along with the
route agents and understanding the way they conduct merchandising activities right
from the charged vans leave the depot to the entry of empty vans back to the depot. The
Route Riding phase was for the initial twenty days in which we had covered twenty
different routes.
The Route Riding is a crucial phase because the actual dealing with the retailers and
their dealing with the customers can be very efficiently understood through this process
which is important at all levels of decision making in the industry.
The RA’s were given the route planners and the particulars of the products, flavours,
and quantities along with the billing materials. The vans had to cover the entire route
and the RA had to do the merchandising and sales against cash, which was a significant
feature of this industry. The targets were given twice or thrice in a week that was a
challenge for them and after achieving these targets the RA’s was awarded with some
51
special incentives. As there exists a player like Coca Cola. So, it had a lot to do with
schemes, discounts and other incentives. The routes were allocated on the basis of
individual areas and the demand of the product in that particular area. The RA’s been
responsible for the accomplishment of their sales target on their routes and was given
incentives on achieving the targets. Not only this, the RA’s also had the responsibility
of moving the flavours and packs in proportion along with the proper display of the
products for proper visibility and arrangement of products in brand order along with
“coca cola purity”.
The RA’s had the responsibility of setting up Monopoly coca cola Sales counters where
no products except that of coca cola would be available amongst the soft drinks and
especially of Pepsi. These monopoly sales counters enjoyed special benefits in terms
of discounts, schemes, VISI’s (fridges), display boards, glow signboards, wall
paintings, banners, posters and other incentives.
The RA’s had to achieve their sales target and surrender the daily sales proceeds with
the concerned Customer Executives along with the route planner and billing materials
and gate pass along with the details of sales on their route.
The entire activities of the RA’s were controlled by the Customer Executives (C.E.),
who also assisted the RA’s in achieving their targets and were in charge of the sales
performance in their assigned areas. A Customer Executive had nine to ten RA’s /
PSR’s under him and was responsible for their performances as well. He was also
concerned with the promotional activities on his routes and handling of policy matters
in the corporate regarding supply to industrial canteens and cafeterias.
We as Research trainees were required to study and analyze the activities of the RA’s
and be familiar with the market. We had been provided Market Analysis Sheets by the
MDC in which we were required to record the observations of the retail outlets on a
particular route.
52
The observations, which were required to be recorded in, were:
• The quantity of the cold and warm stocks of all brands and flavours available at the
outlet along with the outlet details.
• Inquiring about the satisfaction of the retailers in terms of sales of coca cola
products, schemes, discounts, combo offers, and the benefits of promotional
activities.
• Inquiring about the satisfaction by the current distribution network in context to
product availability of all flavours packs or individual flavours according to
demand of customers, rates billings.
• Inquiring about the behaviour and merchandising of RA’s in accordance with the
companies’ regulations and record complaints against RA’s, company or products,
if any.
• Inquire about the performance of various brands and flavours packs and customer’s
response to those brands or flavours and also to educate the retailers about various
schemes and incentives to increase sales volume.
Last but not the least, assessment of the effectiveness of, assessment of the effectiveness
of promotional materials and activities like, display boards, glow signs, signage, wall
paintings, posters, banners, racks, shelves, counters, VISI’s, and also impact of nationwide
advertising on brand loyalty by the customers.
The information so collected was required to be filled in the Market Analysis Sheet
(specimen on the next page) and reported to the MDC along with other information in order
of their seriousness.
B. RETAIL MAPPING OF Kanpur:
The Retail Mapping is the integral part of the project and the most crucial is taking
significant decisions regarding the enhancement of the distribution network involving
heavy investment on account of increasing the routes and starting new routes and
53
promotional measures on those routes to increase its market share in Kanpur. The new
routes, exploring new markets required the decision to be supported with facts and
figures which had to be provided by the Research trainees on the basis of the survey
conducted in the market and processed data thereof.
The retail mapping had to be conducted on the basis of the Retail Tracking Sheet (RTS),
which had been developed by the Marketing Development Coordinator and Customer
Executives of the Kanpur unit which incorporated the retail outlets, their addresses,
proprietor, respondent etc and served as a vital database for all market since then for
coca cola in Kanpur and had to be incorporated in the project in accordance to the
companies policies.
Objectives of Retail Mapping:
• Segregating entire KANPUR for Strong Area Programme and Weak Area
Programme i.e., SAP and WAP.
• Assessment of retailer’s performance.
• Assessment of the level of promotional measures required for increasing market
share of COCA COLA.
• Collection of required information for making investment decisions for the
enhancement of existing routes and opportunities for new routes in existing market
as well as exploring new market.
• Classification of all retail outlets in KANPUR into five broad categories viz., On
Route, Non-Existence, Non-Potential, Reachable and Non-Reachable under the
head, Potential Retail Outlets.
54
The duration for the completion of the Retail mapping took duration of 20 days. The entire
survey was guided and directed by the Customer Executive and Daily report had to be
presented to him after assessment and analysis along with other findings and observations.
The Data had to be classified in a systematic manner and presented in a predefined format,
which was further reviewed by the Marketing Development Coordinator.
The Retail Mapping process incorporated of including of new outlets, which have been
omitted or newly opened, and the product availability on all these outlets. The major thrust
was on segregating the market for Strong Area Programme and Weak Area Programme.
The Strong Area refers to the routes on which the sales targets are met without much effort
and have continuous demand for the products. These areas are performing to the standards
and are contented with the level of promotion schemes and other sales boosting measures.
The marketing efforts are nominal in these areas because of the surplus demand and the
area of concern is only to ensure the proper and efficient supply of the products to meet the
demand. In the KANPUR market approximately 75% of the market can be said to be strong
areas and these areas include the well-developed markets as shopping malls, movie
theatres, conventions, hotels, restaurants and bars etc. For these Strong areas, SAP only
aims at maintaining the performance of the product and enhancing the sales volume. It is
not the area of serious concern for the company.
On the contrary the Weak Area refers to those areas or routes, which are critically low in
sales and the targets, are tough to achieve and require aggressive marketing support. The
demand in these areas is fluctuating or rather feeble. The routes are the area of concern for
the company as the demand is very low due to many reasons and the major one is the
existence of the player like Coca Cola in the market. Other reasons could be poor
distribution network, inadequate availability of the products on the outlet, inadequate
promotional measures and marketing support, undeveloped market as that of the interiors
etc.
These weak areas had to be identified and the cause of their inferior performance had to be
traced through the Retail Mapping and the company had to be provided with the facts and
figures to take legitimate measure on the basis of the findings of the deficient performance
of the product in these areas. This involved the aggressive marketing strategy and heavy
investment decisions to strengthen these markets. For this purpose, the classification of the
55
outlets into five categories was very crucial along with the other findings and observations
discussed later. These five heads of classification have been discussed as under.
ON ROUTE:
It refers to the retail outlets, which are covered by the Route Agents and visited daily for
sales and merchandising. The outlet is visited daily and actively involved in the sales of all
brands and flavour packs of PEPSI.
NON-EXISTENCE:
It refers to the outlets which were merchandising the product are no more in existence, i.e.,
they have diversified their business activity or have closed.
NON-POTENTIAL:
It refers to those outlets, which are in existence but have very low potential in terms of
sales or are not keenly interested in merchandising the products of soft drink.
A careful assessment had to be done in case of Non-Potential outlets, as they would turn to
be potential in near future. It was also the area of operation of project to motivate these
Non-Potential outlets to undertake the merchandising of PEPSI.
POTENTIAL OUTLETS:
It refers to those outlets, which have the potential for the merchandising of PEPSI and have
the required investment capabilities and can be the profitable Point of Purchase of COCA
COLA by the customers. There were cases in case of these potential outlets, which were
already merchandising
PEPSI, and those, which did not, dealt with beverage products. The possibilities of setting
monopoly counter were very fair at these outlets and were given special attention. The
Potential outlets had to be further classified in two heads as below:
REACHABLE POTENTIAL OUTLETS:
It refers to those Potential outlets which are reachable i.e., the products can be made
available with the COCA COLA vans. The reachability decision had to be taken in context
to the accessibility of the vans at these outlets.
56
NON-REACHABLE POTENTIAL OUTLETS:
It refers to those Potential outlets which are not accessible by the COCA COLA vans.
These outlets had to be considered because the sales volume can be increased at these
outlets and so alternative method of distribution and promotional activities have to be
evaluated and worked upon.
CORPORATE MAPPING:
KANPUR being an entirely industrial city had huge potential for the sales of COCA COLA
in corporate as these concerns had factories, offices and canteens and the officials and
workers base was very strong. The process of Retail Mapping was followed by the
Corporate Mapping, which incorporated of tracing of the organizations and assessing the
market for COCA COLA in these areas. Apart from these the database had to be updated
to turn the non-potential market in the corporate into profitable liaisons for the increment
of sales volume.
The Corporate Mapping was the supplementary programme in the project to boost the sales
performance of COCA COLA in KANPUR and capture the market share of its nearest
competitor. The analysis and findings were recorded on the format provide by the company
accompanied by the list of findings and observations in order or their preference and
seriousness along with all the relevant details about the organization. The matters were
discussed and analyzed carefully by the ZONAL HEAD.
The corporate matters had to be given a special care as these had huge potential for the
product. The specimen copy of the Corporate Mapping format is attached for reference.
The findings and observations have been discussed in the coming pages.
57
ANALYSIS OF FINDINGS AND OBSERVATIONS:
The main objective of the company is to increase the brand preference and market share so
any information material form this point of view had to be take into account along with the
formats provided by the company for predefined information recording and analysis of
those recordings and present the information in an organize and systematic manner in a
condensed form reflecting the actual position of the market.
The information had to be recorded in the format along with the relevant information as
per the objectives of the research and an analysis of that information had to be made and
present them in an understandable format so that immediate inferences can be drawn.
Generally, that information had to be presented in percentages and the other findings and
observations had to be evaluated and a list of findings had to be arranged in order of their
seriousness and areas of serious concern along with the outlet details.
After the analysis sheets and formats have been surrendered to the C. E’s after analysis by
the trainees it was further analysed and evaluate by him and a brief analysis was made each
day of the daily report. The CE’s further forwarded these reports after retaining the
reference copy, to MDC for further review and reference.
58
DATA
INTERPRETATION
59
(1) Gender
Discussion:
The total no. of respondent in male are 61% (61) & Female are 39% (39).
61%
39%
0%
Gender of respondent
Male
Female
Other
Respondent Response
Male 61
Female 39
Other 0
60
(2) Age Group
Age Response
18 – 28 28
29 – 39 30
40 – 50 25
51 – 60 17
Any Other 0
Discussion:
From the above data and graph, we can conclude that most of the respondents are in the
age group of 18-39. Another observation is the number of people in the age group 40-60
is second highest. This goes to show that the younger adults are also aware of Coca-Cola
products.
0 5 10 15 20 25 30
18 – 28
29 – 39
40 – 50
51 – 60
Any Other
respondent
Age
Age Group of Respondent
61
(3) Qualification
Qualification Response
Less than undergraduate 19
Under Graduate 31
Graduate 36
Post Graduate 11
Any Other 3
Discussion
From the above data and graph, we can conclude that most of the respondents are in the
group of Graduates. Then the maximum respondents are under the group of Under
Graduates and Post Graduates and Any Other group contained the PhD degree holders
and others qualified people. This is justified as the major target segment for knowing
brand are well qulified.
0
5
10
15
20
25
30
35
40
19
31
36
11
3
Respondent
Quakification
Qualification
62
(4) Occupation
Occupation Response
Employed 27
Self Employed 36
Un-Employed 8
Housewife 1
Students 28
Discussion
From the above data and graph, we can conclude that most of the respondents are in the
group of Students and self-employed which shows that students preferring their interest.
Then the respondents are under the group of Employed, which means that this group are
also preferring varieties of soft drink. And others respondents are also interested towards
the coca cola soft drink.
27%
36%
8%
1%
28%
Employed Self Employed Un-Employed Housewife Students
63
(5) Can You Identify Coca-Cola Products from below?
Discussion
Above graph is showing the brands name of different company which user’s prefer when
they think of selling soft drinks.
10
4
5
4 4
5
4 4
6
2 1
4
3 3
6
2
4
3
6
2
8
7
8
3
Coca-Cola 10
Slice 4
Pepsi 5
Appy 4
Bisleri water 4
Fanta 5
7up 4
Minute maid 4
KinleySoda 6
Minute maid Pulpy Orange 2
GeorgiaCoffee/Tea 1
Real Activ 4
KinleyWater 3
Tropicana 3
Aquafina 6
Monster Energy Drink 2
Mirinda 4
Limca 3
Maaza 6
Lahersoda 2
Sprite 8
Thums up 7
Frooti 8
Mountain Dew 3
64
(6) Can You Identify Premium Products of Coca-Cola from below?
Products Response
Smart Water 1
Himalayan Water 3
Monster Energy Drink 1
Sting Energy Drink 3
Paper Boat Juice 4
Minute Maid Smoothie 7
Ceres Juice 5
Sprite Juicy Plus 5
Fanta Juicy Plus 2
Barbican 2
Minute Maid 1ltr Juice 5
Apple Sparkle 4
Red Bull Energy Drink 6
Appy Fizz 12
Schweppes Tonic Water 3
PowerAde 2
Discussion
Above graph is showing the brands name of Coca Cola company which user’s prefer when
they think of selling the soft drinks.
1
3
1
3
4
7
5 5
2 2
5
4
6
12
3
2
0
2
4
6
8
10
12
14
65
(7)Can Punch line or Brand ambassador Make your mind to Buying decisions of Cold
drinks?
Response Respopndent
Yes 70
No 30
Discussion
Above graph is showing the Punch line of company attract the user’s when they think of
soft drinks.
70%
30%
Yes No
66
(8)How often do you purchase Coca-Cola products?
Time Duration Response
Once a week 60
Twice a week 30
Three times or more a week 10
Discussion
Above graph is showing the duration of buying behaviour of coca cola products.
60%
30%
10%
Once a week
Twice a week
Three times or more a week
67
(9)What you consider when Buy a Cold Drinks?
Attributes Response
Price of product 59
Brand or taste 43
Quantity 56
Offer 24
Discount 32
Discussion
Above graph is showing what respondent consider when they buy a cold drink, this
consideration of respondent is very important to increase the sales by changing the
requirements of respondents.
0 10 20 30 40 50 60
Price of product
Brand or taste
Quantity
Offer
Discount
68
(10) How would you compare Coca-Cola with similar product or brand?
Frequency Response
Much Better 30
Somewhat Better 15
Same 15
Somewhat Worse 5
Much worse 15
Don’t know 20
Discussion
Above graph is showing that why respondent prefer only coca cola soft drinks from various
others brands soft drinks. This showing that respondent feel very better while choosing
coca cola brands.
30%
15%
15%
5%
15%
20%
Much Better Somewhat Better Same
Somewhat Worse Much worse Don’t know
69
(11) Are you satisfied with the Margin of Coca-Cola?
Respondent Response
Yes 56
No 44
Discussion
Above graph is showing that most of the respondent require margin or discount in coca
cola soft drinks and rest of respondents also prefer coca cola soft drinks if discount will not
provide by company.
56%
44%
MARGIN SATISFACTION
Yes No
70
(12) Are you satisfied with the exploratory system of Coca-Cola related with
processing activities or merchandising?
Respondent Response
Yes 53
No 47
Discussion
Above graph is showing that most of the respondent wants something new taste along with
running soft drinks in markets like Appy fiz.
53%
47% Yes
No
71
(13) Agents level of satisfactions with the Incentive System.
Satisfaction Level Response
Extremely Satisfied 2
Very Satisfied 29
Moderately Satisfied 42
Slightly Satisfied 21
Not Satisfied 6
Discussion
Above graph is showing that respondents who belongs to the distribution channel is also
satisfied with logistic of coca cola because company taking care of them very well.
0
5
10
15
20
25
30
35
40
45
Extremely
Satisfied
Very
Satisfied Moderately
Satisfied
Slightly
Satisfied
Not
Satisfied
72
(14) Level of Cooperation and Understanding from the Retailer and
Wholesalers.
Level Response
Very High Level 11
High Level 53
Medium Level 26
Low Level 6
Very Low Level 4
Discussion
Above graph is showing that respondents who belongs to the retailer and wholesalers is
also satisfied with services of coca cola because company taking care of them very well.
0
10
20
30
40
50
60
Very High Level High Level Medium Level Low Level Very Low Level
73
(15) What is the pricing strategy of Coca-Cola and its competitor?
Pricing Response
Par Pricing 15
Promotional Pricing 23
Market Penetration Pricing 62
Discussion
Above graph is showing that company focusing more on the market penetration pricing
strategy.
Par Pricing
Promotional
PricingMarket
Penetration
Pricing
PRICING STRATEGY
74
(16) What is the mode of purchase and product availability?
Mode of Purchase Response
Wholesaler 27
Large Retailer 3
Company Agency 68
Online Purchase 2
Discussion
Above graph is showing that the how respondents buy coca cola products.
0 10 20 30 40 50 60 70
Wholesaler
Large Retailer
Company Agency
Online Purchase
75
FINDINGS
&
OBSERVATION
76
Findings & Observation
The reports of each phase of the project had to be supplemented by the information, data,
facts and figures and significant findings and observation to support the feasibility of
decisions to be taken on the basis of the Retail mapping Summary or the CDR. The
information so recorded in each phases of the project had to be listed in order of their
relevance and seriousness and presented in a form to facilitate immediate inference.
Some of the important observations have been listed below:
• Soft drink business’s behaviour is not governed by brand loyalty so the availability
of the right brand, at the right place, at the right time is the key for winning
consumer in soft drink business.
• The most important observation was that, COKE is the market leader with 64%
market share & PEPSI had approximately 38% market share in the soft drinks
market in KANPUR and some of its brands like THUMPS UP, SPRIT were
performing above standards apart from PEPSI Cola in spite of the Coca Cola with
two cola flavour packs i.e., Coke and Thumps up.
• The present distribution system of COCA COLA is the best in the entire FMCG
industry in KANPUR and the major strength of COCA COLA. The enhancement
in the distribution network would definitely increase the market share of COCA
COLA.
• The retailers played a very critical role in the increment in the sales volume of the
product and they had to be kept satisfied in order to increase the market share by
offering better schemes, discounts, display materials such as VISI’s, racks, counter,
signage, wall paintings and better amount for purchase of shelf space for display.
• The existence of sub-dealers and super stockiest are also the major area of problem,
as they do not move the schemes and other display materials and incentives
information to the retailers, which is one of the reasons for the dissatisfaction of
retailers.
77
• The cut throat competition between COCA COLA and PEPSI had led to the never-
ending cola war and price war which has brought down the profit margins which is
one of the major grievances apart from the common complains pertaining to
schemes, incentives and display materials.
• The other major issue was the supply of COCA COLA from the bottling plants in
DELHI and UP against the company policies. These plants supplied the products
at discounted rates and violated merchandising principles of COCA COLA.
• Another critical issue was the presence of duplicate products of COCA COLA in
the market. The details of these outlets have been surrendered to the company for
action against these outlets.
• The position of COCA COLA in the corporates was not up to the mark and Coca
Cola had a better scene in this context. One of the reasons can be assigned to the
product positioning of PEPSI and Coca Cola.
78
RECOMMENDATIONS
79
Recommendations
The Project Retail Mapping was concerned only with providing the organization with all
the necessary information required to strengthen the position of COCA COLA in
KANPUR in the form of reports incorporating all information in an analysed and
summarized form. But some critical and major issues, which have been identified on
account of extensive analysis, required suggestions to be put forward on the basis of the
current market scenario.
• There should be uniformity in, schemes, and discounts, which are offered to the
retailers and should be based on a specific parameter such as sales volume, to avoid
dissatisfaction and biasness among the retailers.
• Activities of sub dealers and super stockiest should be controlled and checked in
order to ensure fair prices and distribution of schemes and incentives to small
retailers to avoid discontent among smallholdings and outlets.
• Every possible step should be taken for the satisfaction of the retailers, as they are
the most important supplement to the sales promotion measures and nationwide
advertising campaigns of the company in context of boosting the sales and
enhancement of the brand image of COCA COLA.
• The operations of the bottling plants of the surrounding territories should be
controlled in order to ensure that they do not supply the product in other territories
not under their area of operation. The company should modify its advertising
strategy and educate the customers about its age-old existence and enhance its
brand image. This will appeal to the target customers of middle and older age
groups apart from the younger generation in which COCA COLA has a good hold.
• First and foremost, things are that, whatever the policy is going to be formulated it
should not be same for all the areas. Different policies should be framed and
implemented at different areas by looking and keeping various variables in the mind
like buying habits, preferences, education level financial position of that particular
area and standard of living etc.
• Rural market being a very potential segment needs very quick and prompt efforts
to be taken to capture this high-volume market.
80
• Many retailers complained regarding irregularly in visit by the executives. They
also said that executive give very bad response to their complaints. It is necessary
that executive should make frequent visit to cover each outlet and try to provide
them best.
• Pouches, foreign particles were found in few bottles, so proper quality control
measures should be implemented as company’s reputation are at stake.
• There is a great market of soda (1 Lit.) but the supply of this pack is very poor, so
the supply should be made possible quickly.
• Quality of PET bottle should be improved so that most problems can be minimized.
Soft drink is still considered a treat virtually a luxury, so it possible company should
cut down its price especially of cans.
• Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets etc
should be made at regular interval.
• Claim should be provided to the deserving retailers.
• Wall painting should be made regularly in the area, as it is a good medium of
advertisement.
• Proper attention should be given to the retailer’s problem so that they take interest
to increase the sale.
• Proper advertisement should be made at railway station, bus stand, posh area, major
market and economies place etc.
• A company may create favourable impression among the youth if they sponsors
small events like college festivals, university programs, school functions, fashion
shows, quiz programs etc.
• Retailers need display material. To enhance the marketing of the product.
81
LIMITATIONS
82
Limitations
➢
The retailers in many cases reluctant to answered many questions.
➢
The respondents may be biased on influenced by some other factors.
➢
Time and money were the greatest limitation in carrying out the survey.
➢
A number of retailers (pan-shop) being illiterate, it took us lot of time in
collecting information.
➢
The mere information which we get from the retailers is not sufficient to arrive
at a conclusion.
➢
The seasonal changes affect the sales.
83
MAIN KEY POINTS
84
Main Key Points
• Service aspect of agencies is very effective, they deliver their product according to
the demand a just in time.
• After conducting the market survey of retailer in KANPUR city, I analyse that
Coca-Cola is dominating over Pepsi-Cola in the sale of PET.
• After analysing the market and calculate the weightage, the result comes out that
THUMPS UP is the leading product of COCA COLA.
• Consumers do have a demand for THUMPS UP in large number.
• Retailers have problem in display material.
• Most of the place like cinema hall and educational institutions are dominated by
coca cola.
• Retailers have complaint regarding the PET, that more better-quality bottle should
be used.
• Aquafina (Pepsi-Cola) in kanpur city dominated Kinley (Coca-Cola) mineral water.
• Retailers have a demand of some offers and free gifts.
➢ Kinley soda (Coca-Cola) is also dominated by Lehar soda (Pepsi-Cola) in
kanpur city.
➢ Maaza (Coca-Cola) is also dominated by Slice (Pepsi-Cola).
• It was seen that Kinley Soda (1 lit.) in particular remains short during the season.
In the market there is only a retailer on which the sale of the different product of different
company depends.
85
QUESTIONNAIRE
QUESTIONNAIRE
ANNEXURE
Questionnaire for Marketing Strategies of Premium Product of Coca-Cola
Please fill up this form and it doesn't matter You right or wrong, fill as your knowledge
Name………………………………………………………………………….……….
Gender
a.) Male b.) Female c.) others
Age
a.) 18 – 28 b.) 29 – 39 c.) 40 – 50 d.) 51 – 60 e.) Any Other
Qualification
a.) Less than undergraduate
b.) Under Graduate
c.) Graduate
e.) Post Graduate
f.) Any Other
Occupation
a.) Employed
b.) Self Employed
c.) Un-Employed
d.) Housewife
e.) Students
87
(2) Can You Identify Coca-Cola Products from below
Coca-Cola Mountain Dew Tropicana
Slice Minute maid Pulpy Orange Aquafina
Pepsi Frooti Mirinda
Appy Georgia Coffee/Tea Limca
Bisleri water Thums up Maaza
Fanta Real Activ Lahersoda
7up Sprite KinleyWater
Minute maid Monster Energy Drink KinleySoda
(3) Can You Identify Premium Products of Coca-Cola from below
Smart Water Fanta Juicy Plus
Himalayan Water Barbican
Monster Energy Drink Minute Maid 1ltr Juice
Sting Energy Drink Apple Sparkle
Paper Boat Juice Red Bull Energy Drink
Minute Maid Smoothie Appy Fizz
Ceres Juice Schweppes Tonic Water
Sprite Juicy Plus PowerAde
(4) Can Punch line or Brand ambassador Make your mind to Buying decisions of Cold drinks?
Yes No
(5) How often do you purchase Coca-Cola products?
Once a week
Twice a week
Three times or more a week
88
(6) What you consider when Buy a Cold Drinks.
Price of product
Brand or taste
Quantity
Offer
Discount
(7) How would you compare Coca-Cola with similar product or brand?
Much Better
Somewhat Better
Same
Somewhat Worse
Much worse
Don’t know
(8) Are you satisfied with the Margin of Coca-Cola?
YES NO
(9) Are you satisfied with the exploratory system of Coca-Cola related with processing
activities or merchandising?
YES NO
(10) Agents level of satisfactions with the Incentive System
Extremely Satisfied
Very Satisfied
Moderately Satisfied
Slightly Satisfied
Not Satisfied
89
(11) Level of Cooperation and Understanding from the Retailer and Wholesalers
Very High Level
High Level
Medium Level
Low Level
Very Low Level
(12) What is the pricing strategy of Coca-Cola and its competitor?
Par Pricing
Promotional Pricing
Market Penetration Pricing
(13) What is the mode of purchase and product availability?
Wholesaler
Large Retailer
Company Agency
Online Purchase
90
BIBLIOGRAPHY
91
BIBLIOGRAPHY
BOOKS:
❖ Marketing Management – Kotler Philip.
❖ Research Methodology – Kothari.
WEBSITES:
❖ www.thecoca-colacompany.com
❖ www.news.bbc.co.uk
❖ www.india-server.com
❖ www.magindia.com
❖ www.coca-colaindia.com
❖ www.wikiinvest.com
❖ www.open2.net
OTHERS:
Annual report of Coca-Cola 2008.
Annual report of Coca-Cola 2009.

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Coca-Cola's Marketing Strategies for Premium Products

  • 1. A SUMMER INTERNSHIP PROJECT REPORT ON “MARKETING STRATEGIES OF PREMIUM PRODUCTS OF COCA COLA” SUBMITTED TO: DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MBA PROGRAM (2018-20) UNDER THE SUPERVISION OF Dr. PRABHAT KUMAR DWIVEDI ASSOCIATE PROFESSOR STEP-HBTI SUBMITTED BY: VIJAY SHANKAR SINGH MBA II YEAR (2018-20) ROLL NO. 1818170092 SCIENCE AND TECHNOLOGY ENTREPRENEUR’S PARK HARCOURT BUTLER TECHNOLOGICAL INSTITUTE NAWABGANJ, KANPUR (U.P.) – 208002
  • 2. 2
  • 3. 3 TO WHOMSOEVER IT MAY CONCERN This is to certify that VIJAY SHANKAR SINGH is bonafide students of Masters in Business Administration, (2018-2020) in Science and Technology Entrepreneurs Park - Harcourt Butler Technological Institute, Kanpur with dual specialization in MARKETING & FINANCE affiliated to Dr. A.P.J. Abdul Kalam Technical University has successfully completed the SUMMER INTERNSHIP PROJECT WORK entitled as “MARKETING STRATEGIES OF PREMIUM PRODUCTS OF COCA COLA”. This study is done under the guidance of the undersigned for the partial fulfilment of the requirement of Master of Business Administration. I hereby certify his work excellent/good/satisfactory to the best of my knowledge. I wish all the best future ahead. Mentor: Dr. Prabhat Kumar Dwivedi Academic Incharge: Dr. Satish Chandra Ojha (Associate Professor) (Assistant Professor)
  • 4. 4 ACKNOWLEDGEMENT In any project one has to take cooperation and assistance of many people. It is difficult to mention all of them. However, it is necessary to quote some of them who provided initial support and assistance and having completed the project. It is indeed a great moment of pleasure to express my sense of profound gratitude & indebtedness to all the people who have been instrumental in making it a rich experience. I found it to be a challenging project that gave me a real practical exposure to the corporate world and it is almost impossible to do the same without the guidance of peoples around me. Specifically, the summer training of from 6th of June to 31th of July that is generally termed as the partial fulfilment of my MBA program holds extreme importance for my whole career. It gives me immense pleasure to acknowledge HINDUSTAN COCA COLA BEVERAGES PVT Ltd., which has been nice enough to give me a chance to do my summer training and providing me wonderful support throughout my training period and afterward. I am grateful to Mr. NAVEEN BAHADUR (TRAINER HEAD) for giving me a chance to do my summer training in HINDUSTAN COCA COLA BEVERAGES PVT Ltd. INDIA. I am grateful to Mr Sanjeev Singh (S.T.L., Sales) have learned the meaning of marketing and professionalism from this great personality. I also owe my regards to Friendship Enterprises (Distributor), Kanpur for their co- operation in the successful completion of the project. I am also grateful to my internal project guide Dr Prabhat Kumar Dwivedi, STEP-HBTI Kanpur, for giving his guidance throughout my training project. The entire experience has been very encouraging and will certainly help me stand in good stead throughout my career in future. I am also thankful to my college coordinator, Dr. Manoj Kumar Shukla and whole STEP-HBTI family for giving me chance to get such an experience and giving me chance to get an industrial experience.
  • 5. 5 DECLARATION I hereby declare that the project entitled “MARKETING STRATEGIES OF PREMIUM PRODUCTS OF COCA COLA” submitted to SCIENCE AND TECHNOLOGY ENTREPRENEUR’S PARK, KANPUR affiliated to DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW is partial fulfilment of the requirement for the degree of MBA. I declare that this Summer Training Report is my original and not submitted to any other universities before. Vijay Shankar Singh MBA II Sec- B STEP-HBTI
  • 6. 6 CERTIFICATE BY THE INSTITUTE This is to certify that the project titled “MARKETING STRATEGIES OF PREMIUM PRODUCTS OF COCA COLA” is an academic work done by “Vijay Shankar Singh” submitted in the partial fulfilment of the requirement for the award of Degree of MBA (Marketing & Finance) form A.K.T.U. Technical University, Uttar Pradesh. It has been completed under the guidance of Dr. Prabhat Kumar Dwivedi (Faculty Guide) and Mr. Naveen Bahadur (Corporate Mentor). I am thankful to HINDUSTAN COCA COLA BEVERAGES PVT Ltd. for having allowed to me to undergo project work training. The authenticity of the project work will be examined by the viva examiner which includes data verification, checking duplicity of information etc. and it may be rejected due to non-fulfilment of quality standards set by the institute.
  • 7. 7 PREFACE The professional degree course MBA (Masters in Business Administration) is not just confined to theoretical learning but it is far beyond that. It lays more emphasis on acquiring practical knowledge. Without practical learning, management studies go meaningless. Practical training is provided to the management students so that they can get an exposure to the working environment of an organization. The summer training is an integral part of the course curriculum of Master of Business Administration. These trainings provide a framework of knowledge relating to the concepts and practices of the assigned topics in the organization. Each student is required to undergo practical training of about 6-8 weeks after completion of 2nd Semester. After the internship period, the student is in the position to analyse the integral working of an organization and understand the dynamics in a better way.
  • 8. 8 CONTENTS 1. Executive Summary 9 2. Industry Profile 11 3. Profile Company 15 4. Products Profile 37 5. Objectives 44 6. Research Methodology 47 7. Data Analysis & Interpretation 58 8. Findings & Observations 75 9. Recommendations 78 10. Limitations 81 11. Main Key Points 83 12. Questionnaire 85 13. Bibliography 90
  • 10. 10 EXECUTIVE SUMMARY This report has been prepared with a specific purpose in mind. It outlines the history and current scenario of the Coca-Cola Company globally and locally. The first part of the study takes us through the present state of affairs of the beverage industry and Coca-Cola Company globally. The report contains a brief introduction of Coca Cola Company and Coca-Cola India and a detailed view of the tasks, which have been undertaken to analyse the market of Coca- Cola i.e. we have performed Competitive, PESTLE and SWOT analysis of Coca-Cola Company and PESTLE and SWOT analysis of Coca-Cola India in order to identify areas of potential growth for Coca-Cola. We have also given a brief description of Trends and Forces that are affecting Coca-Cola Company globally. The main objective of this project report is to analyse and study in efficient way the current position of Coca- Cola Company. The study also aims to perform Market Analysis of Coca- Cola Company & find out different factors effecting the growth of Coca-Cola. Another objective of the study was to perform Competitive analysis between Coca-Cola and its competitors. Apart from these objectives this study is also conducted to understand the Customer preferences towards various Coca-Cola products.
  • 11. 11 INDUSTRY PROFILE A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG), also known as Consumer-Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. 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. 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. 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.
  • 12. 12 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. 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. 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 cr. 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 cr. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular)
  • 13. 13 A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA 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. Fig 2.0 BEVERAGES IN INDIA The beverage industry is vast and their various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it is as follows: ❖ Alcoholic, non-alcoholic and sports beverages. ❖ Natural and Synthetic beverages. ❖ In-home consumption and out of home on premises consumption. ❖ Age wise segmentation i.e. beverages for kids, for adults and for senior citizens. ❖ Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption. BEVERAGES ALCOHOLIC NON- ALCOHOLIC CARBONATED COLA NON-COLA NON- CARBONATED NON-COLA
  • 14. 14 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. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: ❖ The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. ❖ The credibility and trust need to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. ❖ 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. ❖ Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. 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.
  • 15. 15 COMPANY PROFILE Coca-Cola Enterprises, established in 1886, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca- Cola that is the foundation for this Company. The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However, the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion. The Coca-Cola Company is the world’s largest beverage company. They operate in more than 200 countries & markets more than 2800 beverage products. Headquartered at Atlanta, Georgia, they employ approximately 90500 employees
  • 16. 16 all over the world. It is often referred to simply as Coke or (in European and American countries) as Cola or Pop. MISSION, VISION AND VALUES The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Road map" for winning together with our bottling partners. Our Mission Our Road map starts with our mission, which is enduring. It declares our purpose as a Company and serves as the standard against which we weigh our actions and decisions. • To refresh the world... • To inspire moments of optimism and happiness... • To create value and make a difference Our Vision Our vision serves as the framework for our Road map and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. • People: Be a great place to work where people are inspired to be the best, they can be • Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs • Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value
  • 17. 17 • Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities • Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities • Productivity: Be a highly effective, lean and fast-moving organization Our Winning Culture Our Winning Culture defines the attitudes and behaviours that will be required of us to make our 2020 Vision a reality. Live Our Values Our values serve as a compass for our actions and describe how we behave in the world. • Leadership: The courage to shape a better future • Collaboration: Leverage collective genius • Integrity: Be real • Accountability: If it is to be, it’s up to me • Passion: Committed in heart and mind • Diversity: As inclusive as our brands • Quality: What we do, we do well Focus on the Market • Focus on needs of our consumers, customers and franchise partners • Get out into the market and listen, observe and learn • Possess a world view • Focus on execution in the marketplace every day
  • 18. 18 • Be insatiably curious Work Smart • Act with urgency • Remain responsive to change • Have the courage to change course when needed • Remain constructively discontent • Work efficiently Act Like Owners • Be accountable for our actions and in actions • Steward system assets and focus on building value • Reward our people for taking risks and finding better ways to solve problems • Learn from our outcomes -- what worked and what didn’t Be the Brand • Inspire creativity, passion, optimism and fun
  • 19. 19 COCA-COLA WORLDWIDE (BACKGROUND) The Profile The Coca-Cola Company is the global Soft drink industry leader, with world headquarters in Atlanta, Georgia. The company and its subsidiaries employ nearly 30,000 people around the world Syrups, concentrates and beverages bases for Coca-Cola, the company’s flagship brand, & over 160 other Company Soft Drink brands are manufactured and Sold by the Coca Cold Company and its Subsidiaries in nearly 200 countries around the world. In fact, approximately 70% of company volume and 80% of company profit come from outside the United States. By contract with the Coca-Cola Company on its local subsidiaries, local businesses are authorized to bottle and sell company soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of quality and uniformity. The Coca-Cola takes pride in being a worldwide business that is always local. Bottling and distribution operations are, with some exception, locally owned and operated by independent business people who are native to the nations in which they are located. The Coca-Cola company stock, with ticker symbol KO2 is listed and traded in the United States on the New York stock exchange, common stock also is traded on the on the Boston, Chicago, Pacific a Philadelphia Exchanges Outside the United States, Company common stock is listed and traded on common and swiss exchanges. The Company operating management structure consists of five geographic groups: 1. The North America Group Comprises the United States and Canada. 2. The Latin American group includes the Company’s operations across Central and South American from Mexico to Argentina. 3. The Company’s most populated operating group, the Middle and far east group, ranges from the Middle East to India, China, Japan and Australia. 4. The greater Europe group stretches from Greenland to Russia’s far east, including some of the most established markets in Western Europe and the rapidly growing nations of Eastern and Central Europe.
  • 20. 20 5. The Africa group includes the Company’s business in 50 countries in Sub Sahara Africa. The Coca-Cola Company continues to activate sponsorships throughout the world including associations with World Cup Soccer. The National Football leagues. NASCAR, the Tour de France, the Rugby World Cup, COPA America and numerous local sports teams. The Coca-Cola Company has sponsored the Olympic games since 1928. COCA COLA IN INDIA Coke gained an early advantage over Pepsi since it took over Parle in 1994. Thus, it had ready access to over 2,00,000 retailer outlets and 60 bottlers. Thus, Coke had greater than Pepsi because it had ready access to the Parle network. For example, in 1994 Pepsi had 20 bottlers to serve the entire country while Coke had Parle’s 60 bottlers. In an important market like Delhi Pepsi had just one bottler while Coke had four. On the other hand, Pepsi had taken over the Dukes Mangola of Mumbai. In 1993, Pepsi Foods Ltd. had control over the Rs. 1,100 - Crore Indian Soft Drinks market. At that time, the soft drinks tycoon Ramesh Chauhan, was heading the Parle group and at that time was deciding to explore the possibility of selling his best rolling brands to Coke, rather than to Pepsi. Pepsi had entered the market 3 years before Coke did. Before the Coke-Parle tie-up in '93- Ramesh Chauhan had 2 options before him- (1) to stick around, fight it out again and hopefully, continue with his number one position. (2) to sell out to Coca-Cola for a good return. This risk of losing out to one of the multinationals, eventually, seemed to be throwing up the second alternative. Ramesh Chauhan told business world (India's most popular business magazine) that "it is better to seek a compromise than to fight a lone battle". But he was wisely simultaneously taking steps to safeguard his market share. In a few months, Parle's products will be launched in 250 ml instead the current 200 ml. The indications are that the company will hold the price line. Incidentally, both Pepsi and Coke (if it finally gets in) will cost more than local brands because of the 300% duly on the imported ingredients. However, this scenario was taking place pre-liberalization period and hence implied a very high duty on imported items.
  • 21. 21 Entry of Pepsi and Coke in India or their proposals were at that time being opposed because of the impact of first - strike on the minds of consumers. If Coca-Cola is allowed an easy and quick entry through a window established by the government, there can be no justification for denying similar access to Pepsi Co. Basically, what was wrong at that time with the Coke proposal was that while the Pepsi deal could go through under the camouflage of horticultures and agriculture development as their proposal stated, a pure soft drinks project was not so politically palatable (as it would greatly hamper the indigenous industry). Coke had plans, to invest $ 20 million in India and Pepsi was going to pump in Rs. 300 crores more. Ramesh Chauhan greatest compulsion, to 90 in for the 2nd option was that many of his biggest bottlers were preparing to desert him for Coke, since the bottlers accounted for nearly one-third of Parle's sales. Parle's biggest bottles in the Easter region, Goenka, accounted for 80% market share in Calcutta, felt that the future lay with Coca- Cola, no Indian company had the financial muscle to take on Coke. Also, there was the most convincing factor for the tie-up, that Parle's Position in the Indian soft drinks market and Coca-Cola's marketing strengths and experience would make an unbeatable combination. At that time according to the world’s most popular and well- known magazine, Fortune, had rated Coke as the world's best brand. Even Coke would greatly benefit from the tie-up, as Coke with Parle’s wide spread bottling and distribution network, which was spread over more than a thousand towns and cities and the gradual withdraw of Parle brand would ensure Coke would be the king. Parle's best known brands include Thums Up, Limca, Citra and others were GOLD SPOT and Maaza. The biggest advantage to Parle from the tie-up would be an instant gain of $ 40 million, which could be used profitably in other ventures. According to a report the deal was that, Parle Exports had transferred the rights of all its reputed soft drinks brands to Coca-Cola company, USA. In short, Coca-Cola Company became the exclusive owner of Thums Up, Limca, Gold Spot, Citra and Maaza and could therefore, withdraw them from the market whenever it would want to.
  • 22. 22 Under the agreement, the existing bottlers of Parle Exports would continue to produce Parle brands under the licence from the Coca-Cola company. The U.S. Multinational proposed to introduce its international brands -Coke, Fanta and Sprite at an appropriate time. The Parle bottlers will be bottling these Coco - Cola brands also. The exact nature of Parle, Coca-Cola tie-up is given below: So, Ramesh Chauhan, sold his soft drink brands of the U.S. Multinational for ($ 40 million) and is presently a major Coke bottler. Delhi - based Parle Chairman gave up his ownership of his soft drinks brand (Thums Up, Limca, Citra and Gold Spot) and was awarded the bottling franchisee for Delhi, Bombay, Surat and Ahmedabad. Coke depends on the 54 bottling plants which it was inherited from the Parle by out. So, logically all brands of Parle as well as Coca-Cola will be marketed together. The only problem being that Parle bottlers would not be able to meet the peculiar quality requirements of Coke. Coke + Parle 60% Pepsi 26% Pure Drinks 10% Others 4% MARKET SHARES IN % FIGURES (2018 -19)
  • 23. 23 Model of Brand Selection • Customer buys on value • Value equals quality relative to price • Quality includes all non-price attributes that count in the purchase decision ▪ Product ▪ Customer service • Quality, price and value, are not absolute, but relative to competitors. Quality Product Value Customer Service Price
  • 24. 24 ASSUMPTIONS • Improvements in perceived quality in turn lead to high market share and market leaders spend to build their franchise. • Companies spend a larger share of their sales income on advertising and tend to be much more profitable than companies that spend less. • Brands that spend a much larger than average share of their sales on advertising earn an average return on investment of 32% while brands that advertise much less than their competitors average only 17%. • Increases in advertising expenditure are closely correlated with gains in master share (even after adjusting for the effects of other factors). • Sales promotions like price-off, etc. has no significant correlation with market share changes (only its effect on consumer behaviour is observed). • To some extent companies with high, quality simply have more to say in their advertising, so they are likely to spend more money saying it. • Market-perceived quality is a more important measure of competitiveness than market share for 2 bey reasons: 1. Most market leaders had to develop quality leadership to achieve their large share position superior quality is the base upon which market leadership is usually built. 2. Generally according to data, business that begin with a large share of the market tend to lose share. By contrast, those that begin with superior quality tend to hold or gain share. Therefore, market share is often a lagging indicator of a company's performance; quality is the clear key to success. Pepsi is a perfect example, since it came to India in 1989 with a market share of 0% it now in 1998 enjoys a share of 45.2% in the market.
  • 25. 25 But in case of soft drink, the 2 Cola giants Pepsi and Coke cannot to a great extent differentiate on their brands (but of course in terms of taste and fizz), a lot has to be spent on’ ads, packaging and promotion, i.e., making it more easily available. However, recently in the world's famous business magazine, fortune, Coca Cola was rated as the world's number one brand. It must be noted that the brand also has to work in different ways from market to market. A constant check on, brand management techniques, on the promotion of the brand, in a consistent and robust manner, is essential for the brands future. One point where Coke scores over Pepsi has been in production and distribution system internationally and nationally (because of access to Parle's distribution network) which ensures the product reaches the consumers in perfect condition. The advertising message that is conveyed to the people in the advertising slogan "Always the real thing" (1993), is a credible statement about the brand's virtues. What reinforces this conviction amongst, consumers, apart from the reassurance provided by the consistent quality of the Coca Cola product, is that competitive brands all seek to emulate Coca Cola. There is very little attempt on their part to create a distinctive positioning and personality for their brands. A vast complex network of production, distribution and marketing has kept the brand in front. Coca Cola has entered new markets and also developing market economics (like India) with much-needed jobs. Coke attributes its success to bottlers, the Coca Cola system itself, i.e., its executive committees, employees, BOD, company presidents but above all from the consumer. Coke's red colour catches attention easily and also the Diet Coke which it introduced was taking the Cake, as Pepsi has not come out with this in India. Ever since Coke's entry in India in 1993, Coke made a comeback (after quitting in 1977), in October 24 in Agra, the city was flooded by trucks, there wheelers, tricycle cards-all with huge red Coke-emblazoned umbrellas. Retailers were displaying their Coke bottles in distinctive racks, also with specially-designed iceboxes to keep Coke bottles cold. This was one big jolt to Pepsi.
  • 26. 26 MARKETING MIX WHAT IS A MARKETING MIX? It is a set of controllable tactical marketing tools - product, price, place & promotion - that the firm blends to produce the response it wants in the target market. THE FOUR PS OF THE MKT’S MIX Effective marketing would be blending the marketing mix elements into a coordinated programme designed to achieve the company’s marketing objective by delivering value to consumers. Cola - Cola has always worked upon their marketing mix tools since its entry into India and Coke’s objective has been to strengthen their brand in important segments of the market and to gain a competitive edge over Pepsi brands. PRICE List Price MRP Discounts Allowances Pay Period CR Terms PRODUCT Product Variety Quality Designs Features Brand name Packaging Sizes Services Warranties Returns PROMOTION Advertising Personal Selling Sales Promotion Public Relation PLACE Channels Coverage Assortments Locations Transportation Logistics TARGET CUSTOMERS INTENDED POSITIONING
  • 27. 27 MARKETING MIX OF COKE PRODUCT Coke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian launch of its Cola. at the sparking new bottling plants at Hathra, near Agra. Coke was back with a bang after its exit in 1977. Coke was planning to launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite, following later in the year. Coke already owns more brands than it will over need, since it has bought out Ramesh Chauhan. Coke just needs to juggle these brands around dextrously to meet its objectives, to ensure that Pepsi does not gain market share in the process. For if a vacuum develops, it is Pepsi which has the brand muscle and the distribution network to grab customers today-not Coke. But Coke could not reduce its marketing support for Thums Up until its own Cola would hit the four major metros (Delhi. Bombay, Calcutta and Madras) Therefore, Coke had to give its existing levels of support for Parle's brands and would push Thums Up and Limca. Coke has plans to' use quality and hygiene as USPs. Their aim seems to be to expand market by market, Learning from their mistakes. In, 1998 Coke's product line includes, Coca-Cola, Thums Up, Fanta, Gold Spot, Maaza, Citra, Sprite, Bisleri Club Soda and Diet Coke. PACKAGING Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. Bottle fountain Pepsi, and bottles of 1 and 1.5 ltr
  • 28. 28 PRODUCT POSITIONING One important thing must be noticed that Thums Up is a strong brand in western and southern India, while Coca Cola is strong in Northern and Eastern India. With volumes of Thums Up being low in the capital, there are likely chances of Coca Cola slashing the prices of Thums Up to Rs. 5 and continue to sell Coca Cola at the same rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands in comparison to Pepsi which has just one. Thums Up accounts for 40% of Coca Cola company's turn over, followed by Coca Cola which has a 23% share and Limca which accounts for 17% of the turnover of the company. (Thums up being the local drink, its share in the market is intact, forcing the company to service the brand, as it did last year Mr. Donald short CEO, Coca Cola India, said that, " we will be absolutely comfortable if Thums Up is No. 1 brand for us in India in the year 2005. We will sell whatever consumers wants us to". Coca Cola India has positioned Thums up as a beverage associated with adventure because of its strong taste and also making it compete with Pepsi as even Pepsi is associated with adventure, youth. PORTER'S FIVE FORCES MODEL OF COCA COLA BARGAINING POWER OF SUPPLIERS
  • 29. 29 Most of the ingredients needed for beverages and snacks are basic commodities such as potatoes, flavour, colour, caffeine sugar, packaging etc. So the producers of these commodities have no bargaining power over the pricing for this reason; the suppliers in this industry are weak. ❖ Bargaining Power of Buyers Buyers in this industry have the bargaining power, because main source of the revenue and market share in beverage and food industry are fast food fountain, convenience stores food stores vending etc. The profit margins in each of these segments noticeably demonstrate the buyer power and how special buyers pay diverse prices based on their power to bargain. ❖ Threat of New Entrant There are many factors that make it hard for new player to enter the beverage industry some of important factors are brand image and loyalty, advertising expense, bottling network, retail distribution fear of retaliation and global supply chain. Brand Image / Loyalty Pepsi and Coke continuously focusing on increasing their biggest beverage and food products, they have built some of the globe’s strongest brands that are loved by consumers throughout the world. Innovative Marketing has leveraged their worldwide brand-building strength to attach with consumers in significant ways and impel the growth globally. These all campaign results in high number of loyal customers and strong brand equity throughout the world. In 2011, Coca-Cola was declared the world’s most valuable brand according to Interbrand’s best global brand. This makes it impossible for new entrance to enter the beverage industry easily. Advertising Spend Cock and Pepsi has very effective advertising campaign, their advertising also represent the cultures of different countries. They also sponsor different games and teams and also featured in countless television programs and films. The marketing
  • 30. 30 and advertising expense were approximately $ 15 billion. This makes landscape very harder for new players to succeed. Bottling Network Pepsi and Coca Cola have lived and exclusive contracts with bottler’s that have privileges in all over the world. These franchise agreements or contracts forbid bottler’s from keeping competitor’s brands. Coke has the world's largest beverage distribution network; consuming in more than 200 countries enjoys the Coke’s beverages at an average of nearly 1.6 billion servings a day. Coca-Cola is sold in restaurants, vending machine and stores in more than 200 countries. PepsiCo has adopted the globe’s most powerful “go-to-market systems”, serving more than 10 million outlets a week by operating greater than 100,000 different routes, and producing more than $300 million in retail sales per day. They have also purchased some of the bottlers, this makes difficult for new players to get bottler contracts or to build their bottling plants. Retail Distribution Coke and Pepsi offers 16 to 21 percent margins to retailers for the space they present. These margins are substantial for retailers and this makes it very hard for the new player to persuade retailers to carry their products. Fear of Retaliation It is very difficult for new player to enter in this industry because; they will be highly retaliating by local players in local markets and in global scenario they have to face the duopoly of Coke and Pepsi. This ultimately could result in price war which affects the new player. Global Supply Chain Cock Bill & Melinda Gates Foundation and non-profit Techno Serve initiated partnership to facilitate more than 50,000 small fruit farmers in Kenya Uganda to increase their productivity and double their incomes by 2014. Coke has significant opportunities within global supply chain to encourage and develop more sustainable practices to benefit consumers, customers and suppliers. While; it is still in the premature stages of exploring these opportunities and dedicated to the economic vitality and health of the farming communities our supply chain engages.
  • 31. 31 Pepsi promotes and support sustainable agriculture not only because it makes good business sense, it purchases million tons of potatoes and fruits. ❖ Threat of Substitute Products Large numbers of substitutes are available in the market such as water, tea, juices coffee etc. But firms counter them with innovative marketing and massive advertising which build growth for their brands by highlighting their benefits. Players also differentiate themselves by well-known global trade marks, brand equity and availability of the products which most of the substitute products cannot contest. To protect themselves from competition players in soft drink industry offer Diversify products such as such as Pepsi offers soft drinks (Pepsi, Slice, Mountain Dew), beverages (Tropicana Juices, Dole Juices, Lipton tea, Aquafina bottled water, Sport drinks, Tropicana Juices), Snacks (Rold Gold pretzels and Frito-Lay). Coke also offers most diversified range of products such as Cola-Cola Cherry, Coca-Cola Vanilla, Diet Coke, Diet Coke Caffeine-Free, Caffeine-Free Coca-Cola and range of lime or coffee and lemon. ❖ Competitive Rivalry within an Industry Beverage industry competition can be classified as a Duopoly with Pepsi and Coca Cola. The market share of other competitors is too low to encourage any price wars. Cola-Cola gets competitive advantage through the well-known global trade marks by achieving the premium prices. It means Cola-Cola have something that their competitors do not have. While Pepsi has leveraged its worldwide brand-building strength to attach with consumers in significant ways and impel the growth globally
  • 32. 32 PEST ANALYSIS OF COCA COLA COMPANY As the leading beverages company in the world, Coca Cola almost monopolizes the entire carbonated beverages segment. Beside it, Coca Cola also maintain their reputation as the leading company in the world using PEST Analysis so that Coca Cola can examine the macro-environment of Coca Cola’s operations. Political When Coca Cola had decided to enter a country to distribute the products, Coca Cola was monitoring the policies and regulations of each country. For the example, when entering Moslems country such as Indonesia or Malaysia, Coca Cola followed the regulation by adding “Halal” stamp in each Coca Cola’s products. In this case, Coca Cola has no political issues in this matter. Economic Coca Cola also has low growth in the market for carbonated beverages (North America). The market growth was 1% in 2004. For stimulating the growth, Coca Cola had spent high budget of advertisement to endorse the customers. Social Nowadays, customers tend to change their lifestyle. Customers more aware about health consciousness by reducing in drinking carbonated beverages to prevent diabetes or other diseases. As a result, Coca Cola’s demand for carbonated beverages has decreased and the revenues also decreased. Thus, Coca Cola diversify the products by adding production lines in tea (Nestea), juices (Minute Maid), mineral water (Dasani and Ades), and sport drinks (Powerade), and others. Technological Because of the developing technology, Coca Cola has advanced technology in producing the products. Then, Coca Cola made innovations by giving flavours to the Coke, such as Cherry Coke, Diet Coke, Coca Cola Zero, Coke with Lime, and others. But the customers still prefer the original taste of traditional Coke; it can be seen by the high demands in traditional Coke.
  • 33. 33 SWOT ANALYSIS OF COCA-COLA INDIA Fig 2.3 SWOT ANALYSIS OF COCA-COLA INDIA STRENGTHES: ❖ 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 sale 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 to open bay three wheelers that can navigate the narrow alleyways of Indian cities – constantly keep Coca-Cola brands available in every nook and corner of the Country’s remotest areas. STRENGTHES Distribution Network. Strong Brand Image. Low Cost of Operation. WEAKNESSES Health Care Issues. Small Scale Sector Reservations. OPPORTUNITIES Large Domestic Markets. Export Potential. High Income among People. THREATS Imports. Tax & Regulatory Sector. Slowdown in Rural Demand. SWOT ANALYSIS
  • 34. 34 ❖ STRONG BRAND IMAGE Coke has its history of about more than a century and this prolonged sustenance has definitely added to the brand image in the minds of the consumers and to its wallet. The products produced and marketed by Coca-Cola India have a strong brand image. Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the brand name of Coca-Cola Company as a whole. Coca Cola India for the first time has come out with corporate campaign in India targeting its stakeholders. The multimedia campaign “Little Drops of Joy " is aimed at raising the corporate brand image of the company which took a heavy beating with a number of controversies it faced in different domains. The new campaign is a part of a complete restructuring exercise in the Indian arm of this global change. Coca Cola recently announced its new corporate strategy called the “5 Pillar" strategy. The company has identified the 5 pillars as • People. • Planet. • Portfolio. • Partners. • Performance. ❖ LOW COST OF OPERATIONS In light of the company’s Affordability Strategy, Coca-Cola went about bringing a cost- focus culture in the company. This included procurement Efficiencies – through focus on key input materials, trade discipline and control and proactive tax management through tax incentives, excise duty reduction and creating marketing companies. These measures have reduced the costs of operations and increased profit margins. WEAKNESSES: ❖ HEALTH CARE ISSUES 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
  • 35. 35 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. ❖ SMALL SCALE SECTOR RESERVATIONS 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. OPPORTUNITIES: ❖ 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. ❖ 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.
  • 36. 36 ❖ HIGHER INCOME AMONG PEOPLE Development of India as a whole has led 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. Coca-Cola Company can take advantage of such a situation and enhance their sales. THREATS: ❖ 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. ❖ TAX & 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. ❖ 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.
  • 37. 37 PREMIUM PRODUCTS OF COCA-COLA INDIA COCA-COLA: - In India Coca-Cola was leading soft drink till 1977 when Government 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 remote and inaccessible parts of the nation. Over the past fourteen years has enthralled consumers in India by connecting with passions of India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In 2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India’s favourite soft drink brand till present. GLASS PET CAN FOUNTAIN 200ml, 500ml, 1.5L, 2L, 2.25L, 500ml, 330 ml VARIOUS SIZES Table - 1.0
  • 38. 38 LIMCA: - Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1 sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and lemoni bite combined with the single-minded proposition of the brand as the provider of “Freshness”. Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” + “Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and has been the original thirst choice of millions of customers for over 3 decades. GLASS PET CAN FOUNTAIN 200ml, 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml 330 ml VARIOUS SIZES Table - 1.1 THUMS UP: - Thums up is a leading sparkling soft drink and most trusted brand in India. Originally introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.
  • 39. 39 GLASS PET CAN FOUNTAIN 200ml, 300ml, 500ml, 1000ml 500ml, 1.5L, 2L, 2.25L, 500ml, 330 ml VARIOUS SIZES Table - 1.2 SPRITE: - Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen icon. RGB PET CAN FOUNTAIN 200ml, 300ml 500ml, 600ml, 1250ml, 2000ml, 2250ml 330 ml VARIOUS SIZES
  • 40. 40 FANTA: - Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong market place and is identifies 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. GLASS PET CAN FOUNTAIN 200ml, 300ml 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml 330 ml VARIOUS SIZES Table – 1.4 MAAZA:- Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit of mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza is the mango lover’s first choice.
  • 41. 41 RGB PET POCKET MAAZA 200ml, 250ml 250ml, 600ml, 1.2L 200ml Table – 1.5 KINLEY: - 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 a part of everyday ritual or as the monsoon which gives life to the sub-continent. Kinley water comes with the assurance of safety from the Coca-Cola Company. Available in PET 500ml and 1000ml. across all major metros in India. MINUTE MAID SMOOTHIE: - Coca-Cola India has added to its Minute Maid portfolio with the launch of a new smoothie, as it aims to increase its healthy beverage offer. Called Minute Maid Smoothie, the product has been designed to suit the Indian palate and respond to demands for a combination of “nutritious goodness and taste”. Containing fruit and milk, the beverage is currently available in a mango and banana variant in 250ml bottles.
  • 42. 42 SMART WATER: - Coca-Cola India Pvt. Ltd, the local unit of American beverages maker Coca-Cola Co., is planning to launch its global enhanced water brand Glacéau Smartwater in India next month. Glacéau Smartwater is vapour-distilled water with electrolytes added for taste. Glacéau Smartwater, which is sold as a premium product globally and a popular bottled water brand in the US, will be the fourth water brand to be launched by Coca-Cola in India. The company entered the bottled water market in India with the launch of Kinley in 2000. It extended the water portfolio in May 2016 with Bonaqua, followed by active hydration beverage brand Aquarius in December 2016. FANTA JUICY: - Coca Cola India has introduced Fanta juicy a new variant of its orange flavored sparkling beverage. The new beverage contains real orange juice that will tingle taste buds with the Fanta fizz that consumers have loved for years with content of 250 ml. MONSTER ENERGY DRINK Monster Energy is an energy drink introduced by Hansen Natural Company (now Monster Beverage Corporation) in April 2002. There are 34 different drinks under the Monster brand in North America, including its core Monster Energy line, Java Monster, Extra Strength, Import, Rehab and Muscle Monster. HCCB Takes over the distribution of monster energy drink in India. SPRITY JUICY Coca-Cola India Pvt. Ltd, the Indian unit of American beverage maker Coca-Cola Co., plans to launch fruit juice versions of its Sprite brands in the first half of this year, this is the first time Coca-Cola is looking at bringing extensions of Sprite — its best-selling carbonated beverage brand, —its third largest aerated drink brand.
  • 43. 43 The plan to introduce Sprite extensions comes just months after the American beverage maker launched a variant of sprity — its largest-selling cola brand. The extension, Thumps Up Charged, is a stronger version of the 40-year old cola brand. Sprity juicy contains of 250 ml.
  • 45. 45 The Project “Marketing Strategies of premium products of coca cola” was designed on the lines of basic investment decisions to be taken by the senior officials of coca cola for the purpose of amendments in the pre-existing distribution network in order to review and strengthen the routes. The findings of the project are very crucial for the increment of the market share of coca cola in the Kanpur Beverage Market. Though the process is an ongoing one but the decisions have to be taken on a strong base, supported by facts and figures and that too on papers. This support can only be provided with the help of an extensive and through analysis of the market and the data collected thereof. The objectives of the project were delivered to us express sly by the Marketing Development Co-ordinator who was the lead or the project head and we had to submit the day report to him along with the draft report. He was the in charge of the project and gave guidelines and directions to approach the project. The objectives of the project are: • To understand and analyse the market in its raw and basic form. • To gain an in-depth knowledge of the merchandising and processing activities of the Route Agents and understand the Beverage market. • To undertake the comparative study of the various brands and flavour packs of all existing beverages or soft drinks market and the market share and growth potential of each brand individually. • Comparative study of the various brands, packs and flavours available in the market • To ascertain the pricing strategy of premium products of coca cola & its competitor. • Assess the promotional measures in the context to the sales of COCA COLA and focusing our study on the customer of company i.e., the retailers. • To study about the new product development of coca cola premium products.
  • 46. 46 As obvious that any company is concern with the increase in sales of its products, our project was in line with the companies‟ objectives and all steps incorporate in the project were directed to give an overview so as to attain its objectives. The market research conducted by us was in accordance to the company’s rules and policies which were quite material for the efficient and effective results and inferences to be drawn from the entire process. The market research was conducted in compliance of the given guidelines delivered to us expressly to achieve the given objectives, which were as under: 1. Profitability 3. Improvement 2. Sales 4. To satisfy the customers
  • 48. 48 Research Methodology 1. Defining the problem: To Analyse & check the implementation efficiency of Marketing Strategies of premium products of coca cola in Kanpur. 2. Research Descriptive Research- Descriptive research has been conducted as the primary data was studied and analysed according to the need of the study. 3. Area Selected: Survey was conducted in Kanpur City. 4. Sample Unit: Each respondent was considered as a single unit in the survey. 5. Sample Size: The sample size was done taking 100 units. 6. Collection of Data: Mostly, the information which has been collected is primary in nature. Some secondary data also have been extracted from the various websites, published journals, magazines and newspaper. 7. Data Collection Method: The method of data collection are questionnaire and survey method. 8. Data Analysis Method & Tools: The data analysis instrument used for conducting the research is Tabulation, Bar Chart, Line chart, Pie chart
  • 49. 49 The Market Research Process The entire project was divided into four phases and each phase had its individual significance and supplemented each other. The process had to be started from the grass root level and it was very important to understand the market for this FMCG product, which is very fast in production, distribution and consumption. The four phases into which the project was divided were: A. Route Riding B. Retail Tracking C. Corporate Tracking D. Analysis of finding and observations The entire process was more of a Descriptive Research type and incorporated a formal study of the specific problems faced by most FMCG companies an exploring the opportunities in the untapped market. The survey was conducted on the basis of PEPSI product preference and evaluation of sales forecast in the new and underdeveloped market including the evaluation of the advertising and promotional measures. The data collected had to be systematically arranged, analysed and reported in a form congenial to take on the spot decisions. The observation approach was adopted in the process by gathering the data essential and material for the decision-making and with clear objective of increasing the market share of COCA COLA in the KANPUR market. Customer preferences and satisfaction was also important in assessing the market share but that was very clear that customers generally do not have loyalty towards the product in the Beverage industry rather what matters the most is the product availability which will be discussed later.
  • 50. 50 All the phases mentioned above have been discussed along with the observations, problems, and other dimensions which have been encountered and experience in detail in the following pages. A ROUTE RIDING The Beverage Industry or to be more specific, the Soft Drinks Industry has one of the most active networks in term of its production, supply, distribution, marketing, consumption and also personal relations at the very second level of its distribution network. That is the reason why it is sometimes said to be “Very Fast-Moving Consumer Goods”. Due to the above stated reason it becomes very essential to study and analyse the market of these products from the grass root level. So in the Soft Drinks Company as PEPSI, route riding becomes the first and foremost step in any of the activities to be undertaken is it any official so we were no exceptions. During the very initial days we were required to exercise Route Riding, the objective of which was Route Riding is basically accompanying coca cola Vans along with the route agents and understanding the way they conduct merchandising activities right from the charged vans leave the depot to the entry of empty vans back to the depot. The Route Riding phase was for the initial twenty days in which we had covered twenty different routes. The Route Riding is a crucial phase because the actual dealing with the retailers and their dealing with the customers can be very efficiently understood through this process which is important at all levels of decision making in the industry. The RA’s were given the route planners and the particulars of the products, flavours, and quantities along with the billing materials. The vans had to cover the entire route and the RA had to do the merchandising and sales against cash, which was a significant feature of this industry. The targets were given twice or thrice in a week that was a challenge for them and after achieving these targets the RA’s was awarded with some
  • 51. 51 special incentives. As there exists a player like Coca Cola. So, it had a lot to do with schemes, discounts and other incentives. The routes were allocated on the basis of individual areas and the demand of the product in that particular area. The RA’s been responsible for the accomplishment of their sales target on their routes and was given incentives on achieving the targets. Not only this, the RA’s also had the responsibility of moving the flavours and packs in proportion along with the proper display of the products for proper visibility and arrangement of products in brand order along with “coca cola purity”. The RA’s had the responsibility of setting up Monopoly coca cola Sales counters where no products except that of coca cola would be available amongst the soft drinks and especially of Pepsi. These monopoly sales counters enjoyed special benefits in terms of discounts, schemes, VISI’s (fridges), display boards, glow signboards, wall paintings, banners, posters and other incentives. The RA’s had to achieve their sales target and surrender the daily sales proceeds with the concerned Customer Executives along with the route planner and billing materials and gate pass along with the details of sales on their route. The entire activities of the RA’s were controlled by the Customer Executives (C.E.), who also assisted the RA’s in achieving their targets and were in charge of the sales performance in their assigned areas. A Customer Executive had nine to ten RA’s / PSR’s under him and was responsible for their performances as well. He was also concerned with the promotional activities on his routes and handling of policy matters in the corporate regarding supply to industrial canteens and cafeterias. We as Research trainees were required to study and analyze the activities of the RA’s and be familiar with the market. We had been provided Market Analysis Sheets by the MDC in which we were required to record the observations of the retail outlets on a particular route.
  • 52. 52 The observations, which were required to be recorded in, were: • The quantity of the cold and warm stocks of all brands and flavours available at the outlet along with the outlet details. • Inquiring about the satisfaction of the retailers in terms of sales of coca cola products, schemes, discounts, combo offers, and the benefits of promotional activities. • Inquiring about the satisfaction by the current distribution network in context to product availability of all flavours packs or individual flavours according to demand of customers, rates billings. • Inquiring about the behaviour and merchandising of RA’s in accordance with the companies’ regulations and record complaints against RA’s, company or products, if any. • Inquire about the performance of various brands and flavours packs and customer’s response to those brands or flavours and also to educate the retailers about various schemes and incentives to increase sales volume. Last but not the least, assessment of the effectiveness of, assessment of the effectiveness of promotional materials and activities like, display boards, glow signs, signage, wall paintings, posters, banners, racks, shelves, counters, VISI’s, and also impact of nationwide advertising on brand loyalty by the customers. The information so collected was required to be filled in the Market Analysis Sheet (specimen on the next page) and reported to the MDC along with other information in order of their seriousness. B. RETAIL MAPPING OF Kanpur: The Retail Mapping is the integral part of the project and the most crucial is taking significant decisions regarding the enhancement of the distribution network involving heavy investment on account of increasing the routes and starting new routes and
  • 53. 53 promotional measures on those routes to increase its market share in Kanpur. The new routes, exploring new markets required the decision to be supported with facts and figures which had to be provided by the Research trainees on the basis of the survey conducted in the market and processed data thereof. The retail mapping had to be conducted on the basis of the Retail Tracking Sheet (RTS), which had been developed by the Marketing Development Coordinator and Customer Executives of the Kanpur unit which incorporated the retail outlets, their addresses, proprietor, respondent etc and served as a vital database for all market since then for coca cola in Kanpur and had to be incorporated in the project in accordance to the companies policies. Objectives of Retail Mapping: • Segregating entire KANPUR for Strong Area Programme and Weak Area Programme i.e., SAP and WAP. • Assessment of retailer’s performance. • Assessment of the level of promotional measures required for increasing market share of COCA COLA. • Collection of required information for making investment decisions for the enhancement of existing routes and opportunities for new routes in existing market as well as exploring new market. • Classification of all retail outlets in KANPUR into five broad categories viz., On Route, Non-Existence, Non-Potential, Reachable and Non-Reachable under the head, Potential Retail Outlets.
  • 54. 54 The duration for the completion of the Retail mapping took duration of 20 days. The entire survey was guided and directed by the Customer Executive and Daily report had to be presented to him after assessment and analysis along with other findings and observations. The Data had to be classified in a systematic manner and presented in a predefined format, which was further reviewed by the Marketing Development Coordinator. The Retail Mapping process incorporated of including of new outlets, which have been omitted or newly opened, and the product availability on all these outlets. The major thrust was on segregating the market for Strong Area Programme and Weak Area Programme. The Strong Area refers to the routes on which the sales targets are met without much effort and have continuous demand for the products. These areas are performing to the standards and are contented with the level of promotion schemes and other sales boosting measures. The marketing efforts are nominal in these areas because of the surplus demand and the area of concern is only to ensure the proper and efficient supply of the products to meet the demand. In the KANPUR market approximately 75% of the market can be said to be strong areas and these areas include the well-developed markets as shopping malls, movie theatres, conventions, hotels, restaurants and bars etc. For these Strong areas, SAP only aims at maintaining the performance of the product and enhancing the sales volume. It is not the area of serious concern for the company. On the contrary the Weak Area refers to those areas or routes, which are critically low in sales and the targets, are tough to achieve and require aggressive marketing support. The demand in these areas is fluctuating or rather feeble. The routes are the area of concern for the company as the demand is very low due to many reasons and the major one is the existence of the player like Coca Cola in the market. Other reasons could be poor distribution network, inadequate availability of the products on the outlet, inadequate promotional measures and marketing support, undeveloped market as that of the interiors etc. These weak areas had to be identified and the cause of their inferior performance had to be traced through the Retail Mapping and the company had to be provided with the facts and figures to take legitimate measure on the basis of the findings of the deficient performance of the product in these areas. This involved the aggressive marketing strategy and heavy investment decisions to strengthen these markets. For this purpose, the classification of the
  • 55. 55 outlets into five categories was very crucial along with the other findings and observations discussed later. These five heads of classification have been discussed as under. ON ROUTE: It refers to the retail outlets, which are covered by the Route Agents and visited daily for sales and merchandising. The outlet is visited daily and actively involved in the sales of all brands and flavour packs of PEPSI. NON-EXISTENCE: It refers to the outlets which were merchandising the product are no more in existence, i.e., they have diversified their business activity or have closed. NON-POTENTIAL: It refers to those outlets, which are in existence but have very low potential in terms of sales or are not keenly interested in merchandising the products of soft drink. A careful assessment had to be done in case of Non-Potential outlets, as they would turn to be potential in near future. It was also the area of operation of project to motivate these Non-Potential outlets to undertake the merchandising of PEPSI. POTENTIAL OUTLETS: It refers to those outlets, which have the potential for the merchandising of PEPSI and have the required investment capabilities and can be the profitable Point of Purchase of COCA COLA by the customers. There were cases in case of these potential outlets, which were already merchandising PEPSI, and those, which did not, dealt with beverage products. The possibilities of setting monopoly counter were very fair at these outlets and were given special attention. The Potential outlets had to be further classified in two heads as below: REACHABLE POTENTIAL OUTLETS: It refers to those Potential outlets which are reachable i.e., the products can be made available with the COCA COLA vans. The reachability decision had to be taken in context to the accessibility of the vans at these outlets.
  • 56. 56 NON-REACHABLE POTENTIAL OUTLETS: It refers to those Potential outlets which are not accessible by the COCA COLA vans. These outlets had to be considered because the sales volume can be increased at these outlets and so alternative method of distribution and promotional activities have to be evaluated and worked upon. CORPORATE MAPPING: KANPUR being an entirely industrial city had huge potential for the sales of COCA COLA in corporate as these concerns had factories, offices and canteens and the officials and workers base was very strong. The process of Retail Mapping was followed by the Corporate Mapping, which incorporated of tracing of the organizations and assessing the market for COCA COLA in these areas. Apart from these the database had to be updated to turn the non-potential market in the corporate into profitable liaisons for the increment of sales volume. The Corporate Mapping was the supplementary programme in the project to boost the sales performance of COCA COLA in KANPUR and capture the market share of its nearest competitor. The analysis and findings were recorded on the format provide by the company accompanied by the list of findings and observations in order or their preference and seriousness along with all the relevant details about the organization. The matters were discussed and analyzed carefully by the ZONAL HEAD. The corporate matters had to be given a special care as these had huge potential for the product. The specimen copy of the Corporate Mapping format is attached for reference. The findings and observations have been discussed in the coming pages.
  • 57. 57 ANALYSIS OF FINDINGS AND OBSERVATIONS: The main objective of the company is to increase the brand preference and market share so any information material form this point of view had to be take into account along with the formats provided by the company for predefined information recording and analysis of those recordings and present the information in an organize and systematic manner in a condensed form reflecting the actual position of the market. The information had to be recorded in the format along with the relevant information as per the objectives of the research and an analysis of that information had to be made and present them in an understandable format so that immediate inferences can be drawn. Generally, that information had to be presented in percentages and the other findings and observations had to be evaluated and a list of findings had to be arranged in order of their seriousness and areas of serious concern along with the outlet details. After the analysis sheets and formats have been surrendered to the C. E’s after analysis by the trainees it was further analysed and evaluate by him and a brief analysis was made each day of the daily report. The CE’s further forwarded these reports after retaining the reference copy, to MDC for further review and reference.
  • 59. 59 (1) Gender Discussion: The total no. of respondent in male are 61% (61) & Female are 39% (39). 61% 39% 0% Gender of respondent Male Female Other Respondent Response Male 61 Female 39 Other 0
  • 60. 60 (2) Age Group Age Response 18 – 28 28 29 – 39 30 40 – 50 25 51 – 60 17 Any Other 0 Discussion: From the above data and graph, we can conclude that most of the respondents are in the age group of 18-39. Another observation is the number of people in the age group 40-60 is second highest. This goes to show that the younger adults are also aware of Coca-Cola products. 0 5 10 15 20 25 30 18 – 28 29 – 39 40 – 50 51 – 60 Any Other respondent Age Age Group of Respondent
  • 61. 61 (3) Qualification Qualification Response Less than undergraduate 19 Under Graduate 31 Graduate 36 Post Graduate 11 Any Other 3 Discussion From the above data and graph, we can conclude that most of the respondents are in the group of Graduates. Then the maximum respondents are under the group of Under Graduates and Post Graduates and Any Other group contained the PhD degree holders and others qualified people. This is justified as the major target segment for knowing brand are well qulified. 0 5 10 15 20 25 30 35 40 19 31 36 11 3 Respondent Quakification Qualification
  • 62. 62 (4) Occupation Occupation Response Employed 27 Self Employed 36 Un-Employed 8 Housewife 1 Students 28 Discussion From the above data and graph, we can conclude that most of the respondents are in the group of Students and self-employed which shows that students preferring their interest. Then the respondents are under the group of Employed, which means that this group are also preferring varieties of soft drink. And others respondents are also interested towards the coca cola soft drink. 27% 36% 8% 1% 28% Employed Self Employed Un-Employed Housewife Students
  • 63. 63 (5) Can You Identify Coca-Cola Products from below? Discussion Above graph is showing the brands name of different company which user’s prefer when they think of selling soft drinks. 10 4 5 4 4 5 4 4 6 2 1 4 3 3 6 2 4 3 6 2 8 7 8 3 Coca-Cola 10 Slice 4 Pepsi 5 Appy 4 Bisleri water 4 Fanta 5 7up 4 Minute maid 4 KinleySoda 6 Minute maid Pulpy Orange 2 GeorgiaCoffee/Tea 1 Real Activ 4 KinleyWater 3 Tropicana 3 Aquafina 6 Monster Energy Drink 2 Mirinda 4 Limca 3 Maaza 6 Lahersoda 2 Sprite 8 Thums up 7 Frooti 8 Mountain Dew 3
  • 64. 64 (6) Can You Identify Premium Products of Coca-Cola from below? Products Response Smart Water 1 Himalayan Water 3 Monster Energy Drink 1 Sting Energy Drink 3 Paper Boat Juice 4 Minute Maid Smoothie 7 Ceres Juice 5 Sprite Juicy Plus 5 Fanta Juicy Plus 2 Barbican 2 Minute Maid 1ltr Juice 5 Apple Sparkle 4 Red Bull Energy Drink 6 Appy Fizz 12 Schweppes Tonic Water 3 PowerAde 2 Discussion Above graph is showing the brands name of Coca Cola company which user’s prefer when they think of selling the soft drinks. 1 3 1 3 4 7 5 5 2 2 5 4 6 12 3 2 0 2 4 6 8 10 12 14
  • 65. 65 (7)Can Punch line or Brand ambassador Make your mind to Buying decisions of Cold drinks? Response Respopndent Yes 70 No 30 Discussion Above graph is showing the Punch line of company attract the user’s when they think of soft drinks. 70% 30% Yes No
  • 66. 66 (8)How often do you purchase Coca-Cola products? Time Duration Response Once a week 60 Twice a week 30 Three times or more a week 10 Discussion Above graph is showing the duration of buying behaviour of coca cola products. 60% 30% 10% Once a week Twice a week Three times or more a week
  • 67. 67 (9)What you consider when Buy a Cold Drinks? Attributes Response Price of product 59 Brand or taste 43 Quantity 56 Offer 24 Discount 32 Discussion Above graph is showing what respondent consider when they buy a cold drink, this consideration of respondent is very important to increase the sales by changing the requirements of respondents. 0 10 20 30 40 50 60 Price of product Brand or taste Quantity Offer Discount
  • 68. 68 (10) How would you compare Coca-Cola with similar product or brand? Frequency Response Much Better 30 Somewhat Better 15 Same 15 Somewhat Worse 5 Much worse 15 Don’t know 20 Discussion Above graph is showing that why respondent prefer only coca cola soft drinks from various others brands soft drinks. This showing that respondent feel very better while choosing coca cola brands. 30% 15% 15% 5% 15% 20% Much Better Somewhat Better Same Somewhat Worse Much worse Don’t know
  • 69. 69 (11) Are you satisfied with the Margin of Coca-Cola? Respondent Response Yes 56 No 44 Discussion Above graph is showing that most of the respondent require margin or discount in coca cola soft drinks and rest of respondents also prefer coca cola soft drinks if discount will not provide by company. 56% 44% MARGIN SATISFACTION Yes No
  • 70. 70 (12) Are you satisfied with the exploratory system of Coca-Cola related with processing activities or merchandising? Respondent Response Yes 53 No 47 Discussion Above graph is showing that most of the respondent wants something new taste along with running soft drinks in markets like Appy fiz. 53% 47% Yes No
  • 71. 71 (13) Agents level of satisfactions with the Incentive System. Satisfaction Level Response Extremely Satisfied 2 Very Satisfied 29 Moderately Satisfied 42 Slightly Satisfied 21 Not Satisfied 6 Discussion Above graph is showing that respondents who belongs to the distribution channel is also satisfied with logistic of coca cola because company taking care of them very well. 0 5 10 15 20 25 30 35 40 45 Extremely Satisfied Very Satisfied Moderately Satisfied Slightly Satisfied Not Satisfied
  • 72. 72 (14) Level of Cooperation and Understanding from the Retailer and Wholesalers. Level Response Very High Level 11 High Level 53 Medium Level 26 Low Level 6 Very Low Level 4 Discussion Above graph is showing that respondents who belongs to the retailer and wholesalers is also satisfied with services of coca cola because company taking care of them very well. 0 10 20 30 40 50 60 Very High Level High Level Medium Level Low Level Very Low Level
  • 73. 73 (15) What is the pricing strategy of Coca-Cola and its competitor? Pricing Response Par Pricing 15 Promotional Pricing 23 Market Penetration Pricing 62 Discussion Above graph is showing that company focusing more on the market penetration pricing strategy. Par Pricing Promotional PricingMarket Penetration Pricing PRICING STRATEGY
  • 74. 74 (16) What is the mode of purchase and product availability? Mode of Purchase Response Wholesaler 27 Large Retailer 3 Company Agency 68 Online Purchase 2 Discussion Above graph is showing that the how respondents buy coca cola products. 0 10 20 30 40 50 60 70 Wholesaler Large Retailer Company Agency Online Purchase
  • 76. 76 Findings & Observation The reports of each phase of the project had to be supplemented by the information, data, facts and figures and significant findings and observation to support the feasibility of decisions to be taken on the basis of the Retail mapping Summary or the CDR. The information so recorded in each phases of the project had to be listed in order of their relevance and seriousness and presented in a form to facilitate immediate inference. Some of the important observations have been listed below: • Soft drink business’s behaviour is not governed by brand loyalty so the availability of the right brand, at the right place, at the right time is the key for winning consumer in soft drink business. • The most important observation was that, COKE is the market leader with 64% market share & PEPSI had approximately 38% market share in the soft drinks market in KANPUR and some of its brands like THUMPS UP, SPRIT were performing above standards apart from PEPSI Cola in spite of the Coca Cola with two cola flavour packs i.e., Coke and Thumps up. • The present distribution system of COCA COLA is the best in the entire FMCG industry in KANPUR and the major strength of COCA COLA. The enhancement in the distribution network would definitely increase the market share of COCA COLA. • The retailers played a very critical role in the increment in the sales volume of the product and they had to be kept satisfied in order to increase the market share by offering better schemes, discounts, display materials such as VISI’s, racks, counter, signage, wall paintings and better amount for purchase of shelf space for display. • The existence of sub-dealers and super stockiest are also the major area of problem, as they do not move the schemes and other display materials and incentives information to the retailers, which is one of the reasons for the dissatisfaction of retailers.
  • 77. 77 • The cut throat competition between COCA COLA and PEPSI had led to the never- ending cola war and price war which has brought down the profit margins which is one of the major grievances apart from the common complains pertaining to schemes, incentives and display materials. • The other major issue was the supply of COCA COLA from the bottling plants in DELHI and UP against the company policies. These plants supplied the products at discounted rates and violated merchandising principles of COCA COLA. • Another critical issue was the presence of duplicate products of COCA COLA in the market. The details of these outlets have been surrendered to the company for action against these outlets. • The position of COCA COLA in the corporates was not up to the mark and Coca Cola had a better scene in this context. One of the reasons can be assigned to the product positioning of PEPSI and Coca Cola.
  • 79. 79 Recommendations The Project Retail Mapping was concerned only with providing the organization with all the necessary information required to strengthen the position of COCA COLA in KANPUR in the form of reports incorporating all information in an analysed and summarized form. But some critical and major issues, which have been identified on account of extensive analysis, required suggestions to be put forward on the basis of the current market scenario. • There should be uniformity in, schemes, and discounts, which are offered to the retailers and should be based on a specific parameter such as sales volume, to avoid dissatisfaction and biasness among the retailers. • Activities of sub dealers and super stockiest should be controlled and checked in order to ensure fair prices and distribution of schemes and incentives to small retailers to avoid discontent among smallholdings and outlets. • Every possible step should be taken for the satisfaction of the retailers, as they are the most important supplement to the sales promotion measures and nationwide advertising campaigns of the company in context of boosting the sales and enhancement of the brand image of COCA COLA. • The operations of the bottling plants of the surrounding territories should be controlled in order to ensure that they do not supply the product in other territories not under their area of operation. The company should modify its advertising strategy and educate the customers about its age-old existence and enhance its brand image. This will appeal to the target customers of middle and older age groups apart from the younger generation in which COCA COLA has a good hold. • First and foremost, things are that, whatever the policy is going to be formulated it should not be same for all the areas. Different policies should be framed and implemented at different areas by looking and keeping various variables in the mind like buying habits, preferences, education level financial position of that particular area and standard of living etc. • Rural market being a very potential segment needs very quick and prompt efforts to be taken to capture this high-volume market.
  • 80. 80 • Many retailers complained regarding irregularly in visit by the executives. They also said that executive give very bad response to their complaints. It is necessary that executive should make frequent visit to cover each outlet and try to provide them best. • Pouches, foreign particles were found in few bottles, so proper quality control measures should be implemented as company’s reputation are at stake. • There is a great market of soda (1 Lit.) but the supply of this pack is very poor, so the supply should be made possible quickly. • Quality of PET bottle should be improved so that most problems can be minimized. Soft drink is still considered a treat virtually a luxury, so it possible company should cut down its price especially of cans. • Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets etc should be made at regular interval. • Claim should be provided to the deserving retailers. • Wall painting should be made regularly in the area, as it is a good medium of advertisement. • Proper attention should be given to the retailer’s problem so that they take interest to increase the sale. • Proper advertisement should be made at railway station, bus stand, posh area, major market and economies place etc. • A company may create favourable impression among the youth if they sponsors small events like college festivals, university programs, school functions, fashion shows, quiz programs etc. • Retailers need display material. To enhance the marketing of the product.
  • 82. 82 Limitations ➢ The retailers in many cases reluctant to answered many questions. ➢ The respondents may be biased on influenced by some other factors. ➢ Time and money were the greatest limitation in carrying out the survey. ➢ A number of retailers (pan-shop) being illiterate, it took us lot of time in collecting information. ➢ The mere information which we get from the retailers is not sufficient to arrive at a conclusion. ➢ The seasonal changes affect the sales.
  • 84. 84 Main Key Points • Service aspect of agencies is very effective, they deliver their product according to the demand a just in time. • After conducting the market survey of retailer in KANPUR city, I analyse that Coca-Cola is dominating over Pepsi-Cola in the sale of PET. • After analysing the market and calculate the weightage, the result comes out that THUMPS UP is the leading product of COCA COLA. • Consumers do have a demand for THUMPS UP in large number. • Retailers have problem in display material. • Most of the place like cinema hall and educational institutions are dominated by coca cola. • Retailers have complaint regarding the PET, that more better-quality bottle should be used. • Aquafina (Pepsi-Cola) in kanpur city dominated Kinley (Coca-Cola) mineral water. • Retailers have a demand of some offers and free gifts. ➢ Kinley soda (Coca-Cola) is also dominated by Lehar soda (Pepsi-Cola) in kanpur city. ➢ Maaza (Coca-Cola) is also dominated by Slice (Pepsi-Cola). • It was seen that Kinley Soda (1 lit.) in particular remains short during the season. In the market there is only a retailer on which the sale of the different product of different company depends.
  • 86. QUESTIONNAIRE ANNEXURE Questionnaire for Marketing Strategies of Premium Product of Coca-Cola Please fill up this form and it doesn't matter You right or wrong, fill as your knowledge Name………………………………………………………………………….………. Gender a.) Male b.) Female c.) others Age a.) 18 – 28 b.) 29 – 39 c.) 40 – 50 d.) 51 – 60 e.) Any Other Qualification a.) Less than undergraduate b.) Under Graduate c.) Graduate e.) Post Graduate f.) Any Other Occupation a.) Employed b.) Self Employed c.) Un-Employed d.) Housewife e.) Students
  • 87. 87 (2) Can You Identify Coca-Cola Products from below Coca-Cola Mountain Dew Tropicana Slice Minute maid Pulpy Orange Aquafina Pepsi Frooti Mirinda Appy Georgia Coffee/Tea Limca Bisleri water Thums up Maaza Fanta Real Activ Lahersoda 7up Sprite KinleyWater Minute maid Monster Energy Drink KinleySoda (3) Can You Identify Premium Products of Coca-Cola from below Smart Water Fanta Juicy Plus Himalayan Water Barbican Monster Energy Drink Minute Maid 1ltr Juice Sting Energy Drink Apple Sparkle Paper Boat Juice Red Bull Energy Drink Minute Maid Smoothie Appy Fizz Ceres Juice Schweppes Tonic Water Sprite Juicy Plus PowerAde (4) Can Punch line or Brand ambassador Make your mind to Buying decisions of Cold drinks? Yes No (5) How often do you purchase Coca-Cola products? Once a week Twice a week Three times or more a week
  • 88. 88 (6) What you consider when Buy a Cold Drinks. Price of product Brand or taste Quantity Offer Discount (7) How would you compare Coca-Cola with similar product or brand? Much Better Somewhat Better Same Somewhat Worse Much worse Don’t know (8) Are you satisfied with the Margin of Coca-Cola? YES NO (9) Are you satisfied with the exploratory system of Coca-Cola related with processing activities or merchandising? YES NO (10) Agents level of satisfactions with the Incentive System Extremely Satisfied Very Satisfied Moderately Satisfied Slightly Satisfied Not Satisfied
  • 89. 89 (11) Level of Cooperation and Understanding from the Retailer and Wholesalers Very High Level High Level Medium Level Low Level Very Low Level (12) What is the pricing strategy of Coca-Cola and its competitor? Par Pricing Promotional Pricing Market Penetration Pricing (13) What is the mode of purchase and product availability? Wholesaler Large Retailer Company Agency Online Purchase
  • 91. 91 BIBLIOGRAPHY BOOKS: ❖ Marketing Management – Kotler Philip. ❖ Research Methodology – Kothari. WEBSITES: ❖ www.thecoca-colacompany.com ❖ www.news.bbc.co.uk ❖ www.india-server.com ❖ www.magindia.com ❖ www.coca-colaindia.com ❖ www.wikiinvest.com ❖ www.open2.net OTHERS: Annual report of Coca-Cola 2008. Annual report of Coca-Cola 2009.