new master manjeet

8/4/2019 New Master Manjeet

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Marketing strategy & survey of right execution for Coca-Cola

1. INTRODUCTION

1.1 General Overview of Indian Industry

The Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

Goods are those 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. Items in this category include all consumables (other than groceries / pulses)

people buy at regular intervals. The most common in the list are toilet soaps,

detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff,

and household accessories and extends to certain electronic goods. These items are

meant for daily of frequent consumption and have a high return. A major portion of the

monthly budget of each household is reserved for FMCGT products. The volume of

money circulated in the economy against FMCG products is very high, as the number of

products the consumer use is very high. Competition in the FMCT sector is very high

resulting in high pressure on margins.

The Indian FMCG sector is the fourth largest sector in the economy with a total marketsize in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized

by a well established distribution network, intense competition between the organized

and unorganized segments and low operational cost. FMCG Sector is expected to grow

by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year

period. It has been estimated that FMCG sector will rise from around Rs. 56,500 crores

in 2005 to Rs. 92,100 crores in 2010. Though the sector witnessed a slower growth in

2002-2004, it has been able to make a fine recovery since then.

Burgeoning Indian population, particularly the middle class and the rural segments,

presents an opportunity to the FMCG sector in India to squeeze the best out of the

untapped market. An average Indian spends around 40 per cent of his income on along

with the large population base is another factor that makes India one of the largest

FMCG markets.

IIMS-MBA 2010-12 Page 1


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The consumer goods sector can be broadly divided into the following categories:

Household care Fabric wash (laundry soaps and synthetic detergents);

household cleaners (dish / utensil cleaners, floor cleaners, toilet cleaners, air

fresheners, insecticides and mosquito repellents metal polish and furniture

polish).

Food & Beverages Health beverages; soft drinks; staples / cereals; Beverages

bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea;

coffee; soft drinks; processed fruits, vegetables; dairy products; bottled water;

branded flour; branded rice; branded sugar; juices etc.

Personal Care Oral care, hair care, skin care, personal wash (soaps);

cosmetics and toiletries; deodorants; perfumes; feminine hygiene; paper

products.

Since this particular project deals with the horizontal expansion of Coca-Cola, we are

now going to focus deeply on the beverage industry in India, with special focus on the

Coca-Cola Company. The beverage industry is India is vast, and there are various

ways of segmenting it, so as to cater the right product to the right person. The different

ways of segmenting it are as follows: Alcoholic, non-alcoholic & sports beverages.

Natural & synthetic beverages.

In-home consumption & out of home on premise 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.

Most multinationals that came to India after 1991 targeted Indias urban middle class of

earn revenues. Gradually, as appetites of this market of 300-400 million got satisfied,

they woke up to the potential of the other market of more than 1 billion people.

According to Industry estimates, rural India accounts for 74 percent of Indias



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population and 58 percent of Indias disposable income. Rural India is also

characterized by growing affluence: agricultural output increasing to nearly 215 million

tons in 2004 compared to 176 million tons in 1991.

According to the data compiled by the National Council of Applied Economic Research,

rural India now accounts for 70 percent of toilet soap users, and 38 percent of two-

wheeler purchasers come from rural India.

Atlanta-based Coca-Cola Company is one of the first global majors to have spotted the

potential spin-offs from the countrys rural markets. It has perfected a unique supply

chain to cater to Indias vast rural hinterland. The results are working, and Coca-Cola

Indias rural penetration increased from 13 percent in 2001 to 25 percent in mid-2003.

Over this period, the number of companys rural distributors increased from less than

4000 to 5500.

Colas, being fast moving consumer good, hold enormous potential for a manufacturer

like the Coca-Cola Company. The biggest reason for this is the low per capita

consumption, which Coke estimates at 3.7 bottles per person per year compared to 10

bottles per person per year for all India. Moreover, drinkers constitute only 18 percent

of the population, as against 28 percent for all India.

Breaking into this market required innovative thinking and a new strategy. Rural India

meant reaching 6,27,000 villages spread over 32,87,263 square kms; it meant getting

distributors to travel 200 kms to reach five shops with drop sizes of less than a case.

Most of all, however, it implied he challenges of catering to the rural retailer a new

kind of customer for Coca-cola. A typical village retails environment consists of 4-5

kirana shops. The size of such stores varies depending on the size of the population

density of the village which it serves.



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Purchase patterns also vary frequently due to daily wage earnings. There are spikes in

sales during festivals, in the wedding season and during post harvest, while there are

troughs during other periods.

To reach out to rural India, Coke started out by drawing a hit list of high potential

villages from various districts. Coca-Cola also concentrated on 47,000 (weekly

markets) & 25,000 (fairs) held annually in various parts of the country.

Coca-Cola now claims that 80 percent of its new drinkers come from rural India, where

per capita consumption has nearly doubled between 2002 and mid 2003. By 2003, the

rural market accounted for nearly 30 percent of Cokes volumes, at 36 percent. The

rural market also grew faster; between 2002 and mid-2003; Cokes urban market grew

24 percent while the rural market grew 37 percent.

Coca-Colas endless endeavor to capture the Indian market (both urban as well as

rural) has continued till date with its Horizontal Expansion Plan. In my summer

training period which lasted for four weeks, I had worked upon the Marketing strategy in

the Distribution Zones of Bareilly. (Hindustan distributor)

I was given a target of fill up of EDS and I was told to in find out outlets to open new

outlets for the Coca-Cola Company. I traveled this distance on foot with the sole

purpose of targeting not only the outlets in the prime locations, but also those outlets

which have the right potential to attract customers and the right kind of space to

accommodate the chilling equipment as well as the products.



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1.2 Purpose of the Study

Consumption of soft drinks has increased tremendously in India. Every age of

group like it, now a days it become a household necessary item.

In field of marketing many kind of surveys are conducted by coca-cola team time

to time.

This is end and last feedback for any kind of organization. By the specific survey,

which was conducted by coca-cola organization want to know about the right

picture of BAREILLY market? This work study provides extensive information

about the position of companys brand in Bareilly.

1.3 Scope of the Study

This project work is helpful in making a deeper analysis of the opportunity

mapping of Coca-Cola & the competition mapping in Bareilly.

This project work will be helpful in conducting higher studies regarding the overall

satisfaction of Coca-Cola from the dealers perspective.

This report work will help the company to devise further marketing & sales

strategies.

1.4 Objective of the Study

To critical evaluation of marketing strategies adopted by Coca-Cola.

To study the promotional strategies adopted by Coca-Cola.

To study the reason of preferences for chosen a particular brand.



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1.5 GROWTH AND PRESENT STATUS OF THE INDUSTRY

The total value of the soft drink industry was $48 billion in 1990s. The average in the

states 48 gallons per year. Industry analyst contended that the soft drink industry had

plateau, and that total consumption was unlikely to increase significantly in the near

future. As a consequence, the cola wars were moving to international markets.

Although, after the mid 90s both company found a different strategy fueled by the twin

engines of innovation and diversity. Consumers are drinking a widening assortment of

beverages. There is increasing demand for health and nutrition drinks

(juices and juice-based products), rejuvenation drinks (tea and coffee), and

replenishment drinks (sports drinks and water). Coke, the worlds largest soft drink

company with a 45% share of the worldwide soft drink market, earned 80% of its profits

outside of the United States in 1993. In according to this, Pepsi, with only 15% of its

beverage operating profits coming from overseas was using guerilla warfare to attack

Coke in selected international markets. Americans consumed 23 gallons of soft drinks a

year in 1970 compared to 48 gallons in 1993. This growth was fueled by increasing

availability and affordability of soft drinks in the marketplace, as well as the introduction

and growth of diet soft drinks. And then become stabile. For improve profits on the

saturated market was possible by cost reduction, new products but not cannibalize your

products, and better value chain that returns you as a competitive advantage. It was not

easy. There were many alternative to soft drinks ; coffee, beer, milk, tea, bottled water,

juices, powdered drinks, wine, distilled spirits, and tap water. The 1980s Pepsi and



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Coke transformed their businesses. These consumer-oriented businesses experienced

changes in the forces impacting key strategy areas: investment; distribution channels;

trade and manufacturer relations; shareholder pressure; marketing and promotional

programme design; new competitors and proliferation of products across their traditional

categories, etc. Using 1978 as a base year, the Consumer Price Index (CPI) grew at an

average rate of 5.9%, compared with soft drink price growth 3.8%. Consumer demand

appeared to be sensitive to price increases. The cola segment of the soft drink industry

held the dominant (68%) share of the market in 1992, followed by lemon/lime with 12%,

pepper flavor 7%, orange 3%, root beer 2%, and others 8%. Coke and Pepsi had a

combined 73% of the soft drink market.

1.6FUTURE OF THE INDUSTRY

Consumers are drinking a widening assortment of beverages. There is increasing

demand for health and nutrition drinks (juices and juice-based products), rejuvenation

drinks (tea and coffee), and replenishment drinks (sports drinks and water). Soft drink

companies intend to fulfill the needs of consumers for every occasion at every stage of

their lives. Both Pepsi and Coca Cola pronounced their self a total beverage company.

More and more, people are turning to noncarbonated beverages to give them vigor and

energy. Whether its for a lift during the day or for enjoyment after the workday ends,

consumers are embracing ready-to-drink teas and coffees. With every new discovery of

the health benefits of teas, demand increases even more.



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The basic product of soft drink companies cola. Today, cola is the most consumed

beverage, still in the world. Even as lifestyles change all over the world, there is one

beverage that remains the essential element for all people water. Soft Drink

Companies are also focusing on their portfolio of replenishment beverages to meet

differing local tastes for water and to provide sports drinks that quench the thirst of

people with active lifestyles.



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2. DESIGN OF THE STUDY

2.1 TITLE OF THE STUDY

The study has been conducted under the title of Marketing strategy & survey of

right execution for Coca-Cola.

2.2 STATEMENT OF THE PROBLEM

The type of research that I have conducted while undergoing this project is ExploratoryResearch. The main purpose for taking up such a type of research work is to exploring

the strategies of Coca-Cola in Bareilly. In this process, the market potential for Coca-

Cola has been studied. I have conducted a survey to carry out such a type of research.

This research investigate any problem which suitable hypothesis this is also clarifying

few any doubt and also helps for further research for developing a hypothesis.

2.3 OBJECTIVES OF THE STUDY

This project takes a look that what type of marketing strategy adopted by coke. The two

major global players i.e. Pepsi and Coca-Cola dominate the soft drinks industry in India.

The objectives of the project are to study the importance of advertising and sales

promotion schemes in the soft drinks industry.

The project takes a view on:-

To critical evaluation of marketing strategies adopted by Coca-Cola. To study the promotional strategies adopted by Coca-Cola.

To study the reason of preferences for chosen a particular brand.



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2.4 LIMITATIONS OF THE STUDY

Considering the fact that nothing is perfect in the world. Every individual bound to

make mistake at some points. Its genuine. The study was restricted to Bareilly only, so it was difficult to generalize the

interpretations would make out the findings.

The respondents may be based or influence by other factor.

Information collection took 30 days.

A busy schedule of dealers/retailers also makes the collection of information very

difficult one.

Non-co-operative behavior of respondent was a big problem in this survey. White studying the report the above fact should be taken into consideration.

The minor concept and techniques at the marketing management are used

significant in the project concern.

The research was dependant on the information provided by the respondents

(retailers). It may insufficient.

As associated with every project, time and money were the major limitations with

project.

Resources for collection of data are less.

Time period for data collection is short

Difficult to get response from customer.

Experience in field of research is difficult job.



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2.8 Sampling Details

Sampling Frame

I have conducted the survey by interacting with the dealers of Brindavan Beverages

distributor of Bareilly; the first one being the entire Old & new Bareilly, Batler, ayun

Khan, Bara Bazaar, Prem Nagar, Housing Board, Rajendra nagar market, Railway

Station, and old & new Bus station.

Sampling Unit

I have taken three types of dealers in order to conduct my survey; the first category

being exclusively Coca-Cola dealers, the second category being the exclusively Pepsi

dealers, the third category being the mixed dealers (of both Coca-Cola & Pepsi). The

survey has been conducted in three different types of outlets, the first being

convenience outlets, the second being grocery outlets, the third being eating &

drinking outlets.

Sampling Element

The sampling elements have been taken from the shops visited during the on job

Training.

Sampling Procedure

The sampling method adopted is probability sampling in which stratified random

sampling has been done in Bareilly. A stratified sample is constructed by classifying the

dealers population in the above two strata based on the parameters as mentioned in

the segmentation model of the company. The selection of elements is made separatelyfrom four set of channel segments Convenience, Grocery, Eating & Drinking. The

three dealer types under three channels are dealers of the exclusively Coca-Cola

outlets, dealers of the exclusively Pepsi outlets and dealers of the mixed (both Coca-

Cola and Pepsi) outlets.



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Sample Size

The sample size that I have chosen to conduct the survey is 296, out of which 265

samples are dealers of exclusively Coca-cola, 3 samples are dealers of exclusively

Pepsi, and the remaining 28 samples are of mixed dealers (of both Coca-cola & Pepsi)

2.9 METHODOLOGICAL

The project will involve a study of Advertisements and sales promotions schemes of the

soft drinks industry. The study will include following parameters.

Top of the mind recall.

Brand awareness about an advertisement.

The use of celebrity in a particular campaign and their impact.

The mode of the data collection would include both primary and secondary.

The impact of sale promotion schemes would measure on:

Their visibility.

Recall value of a post schemes.

Acceptability of the current scheme by the customers and sales force.

The project work started with the collection of secondary data from various sources

such as newspaper, magazines, journals and web sites. Along side two questionnaires

were also prepared one aimed at consumers and the other aimed at retailers together

primary data, regarding the influence and effect of Advertising and sales promotion

schemes on the sales of soft drinks (Carbonated Soft drinks).



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In 1919, a group of investors headed by Ernest Woodruff and W.C. Bradley purchased

the Coca-Cola Company for $25 million. The new president put uncommon emphasis

on product quality. Mr. Woodruff established a Quality Drink campaign using a staff of

highly trained service people to encourage and assist fountain outlets in aggressively

selling and correctly serving Coca-Cola. And with the assistance of leading bottlers, his

management established quality standards for every phase of the bottling operation. Mr.

Woodruff saw vast potential for the bottle business, so advertising and marketing

support was substantially increased. By the end of 1928, Coca-Cola sales in bottles had

for the first time exceeded fountain sales. Robert Woodruff leadership through the years

took the Coca-Cola business to unrivaled heights of commercial success. Working with

talented associates, he established the global momentum that eventually carried Coca-

Cola to every corner of the world.

Coca-Cola in India (Brindavan Beverages Coca Cola Pvt. Ltd.)

Coca-Cola the corporation nourishing the global community with the worlds largest

selling soft drink concentrates since 1886, was the leading soft drink brand in India until

1977, when it left rather than reveal its formula to the government and reduce its quality

stake as required under the Foreign Exchange Regulation Act (FERA) which governed

the operations of foreign companies in India. Coca Cola then returned to India on 26 th

October, 1993 after a 16 year hiatus, with its launch in Agra, giving a new Thumbs up to

the Indian soft drink market. In the same year, the Company took over ownership of the

nations top soft-drink brand and bottling network. Ever since, Coca-Cola has made

significant investments to build and continually consolidate its business in the country,

including new production facilities, waste water treatment plants, distribution systems,

and marketing channels. Coca-Cola India is among the countrys top international

investors, having invested more than US$ 1 billion in India in the first decade, and

further pledged another US$ 100 billion in 2003 for its operations. The Company has

shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure

of world-class drinks to fill up their hydration, refreshment, and nutrition needs.



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3.6 Mission of Coca Cola

To refresh the world in mind, body and spirit.

To make a difference in its product.

To inspire moments of optimism through its brand and difference everywhere it

engage.

To do everything differs.

Its product in each hand.

Being a global leader in beverage.

3.7 Vision of Coca-Cola

PROFIT: Maximize the return of share holder.

PEOPLE: Establish a great place to work where people are inspired to the best

they can do.

PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate

and safely peoples need and desire.

PARTNERS: Nurturing a winning network of partners and building a mutual

loyalty.

PLANET: Being a responsible global citizen that makes a difference.



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3.8 ORIGIN OF THE ORGANIZATION

Coca-Cola is a carbonated soft drink sold in almost all the countries of the world. Coca-

Cola is manufactured by The Coca-Cola Company and is often referred to as Coke.

Coke is one of the most recognizable brands in the world.

Coca-Cola was invented by John Stith Pemberton in Covington, Georgia in May 1886.

The beverage was initially a coca wine and was called Pembertons French

Wine Coca. After Atlanta and Fulton County passed Prohibition legislation, Pemberton

made a carbonated, non-alcoholic version of French Wine Cola and called it Coca-Cola.

Coca leaves from South America were added as a stimulant to the beverage along .with

kola nuts which were added to give flavor to the drink. Due to them the name Coca-Cola

was given to the beverage. Asa Candler, who was also a pharmacist of Atlanta, bought

the formula for Coca-Cola in 1887 from John Pemberton for $2,300. Asa Candler

marketed Coke aggressively and was

responsible of the dominance of the world soft drink market by Coke.

During Pembertons time five ounces of coca leaf were added per gallon of the syrup

which constituted a significant dose. Candler claimed in 1891 that he had altered the

formula of Coca-Cola and it now contained only a tenth of amount of coca leaves. Coca-

Cola also contained nine milligrams of cocaine per glass till 1904, when they started

using spent leaves instead of fresh leaves.



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3.9 GROWTH AND DEVELOPMENT OF THE ORGANIZATION

The Company's presence worldwide was growing rapidly, and year after year, Coca-

Cola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau,

Turkey and more.

In 1978, The Coca-Cola Company was selected as the only Company allowed selling

packaged cold drinks in the People's Republic of China.

The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of

much change and innovation at The Coca-Cola Company. In 1981, Roberto C.

Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola

Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the

Company with a strategy he called "intelligent risk taking."

One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-

Cola, the first change in formulation in 99 years. In taste tests, people loved the new

formula, commonly called new Coke. In the real world, they had a deep emotional

attachment to the original, and they begged and pleaded to get it back. Critics called it

the biggest marketing blunder ever. But the Company listened, and the original formula

was returned to the market as Coca-Cola classic, and the product began to increase

its lead over the competition -- a lead that continues to this day.

The 1990s were a time of continued growth for The Coca-Cola Company. The

Company's long association with sports was strengthened during this decade, with



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ongoing support of the Olympic Games, FIFA World Cup football

(soccer), Rugby

World Cup and the National Basketball Association. Coca-Cola classic became the

Official Soft Drink of NASCAR racing, connecting the brand with one of the world's

fastest growing and most popular spectator sports.

New beverages joined the Company's line-up, including Powerade sports drink, Qoo

children's fruit drink and Dasani bottled water. The Company's family of brands further

expanded through acquisitions, including Limca, Maaza and Thums Up in India,

Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury Schweppes' beverage

brands in more than 120 countries around the world. By 1997, the Company already

sold 1 billion servings of its products every day, yet knew that opportunity for growth

was still around every corner.

In 1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now

well into its second century, the Company's goal is to provide magic every time

someone drinks one of its more than 400 brands. Coca-Cola has fans from Boston to

Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In

the remotest comers of the globe, you can still find Coca-Cola.

From the early beginnings when just nine drinks a day were served, Coca-Cola has

grown to the worlds most ubiquitous brand, with more than 1.4 billion beverage

servings sold each day.



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3.10 PRESENT STATUS OF THE ORGANIZATION

Asia will be the biggest driver of Coca-Colas growth over the next 10 years, the head of

the worlds biggest beverage company said, adding that the company had lost out by

not investing enough in the region in the past. Asia is at the core, Neville Isdell, the

chairman and chief executive of the Atlanta, Georgia-based Coca-Cola Co., said. The

company said its worldwide unit-case volume sales grew 6%the highest rate since

2002. Isdell said Coca-Cola has invested more than $1 billion (Rs4, 100 crores) over

the last 12 months in Asia, particularly in the Philippines, China, India and Indonesia.

Coca-Cola Co slightly increased its lead over rival Pepsi-Cola Co in 2002, thanks to the

successful launch of Vanilla Coke and the growth of Diet Coke, according to US soft

drink industry rankings.

Coke gained 0.6 percentage points in market share and increased its case volume by

2.1 per cent, according to beverage digest-/Maxwell, a New York-based industry

newsletter and data service said.

The company captured a larger share of the market even though its coke classic brand

fell 0.6 percentage points in market share. Atlanta-based Coca-Cola dominates 44.3 per

cent of the US soft drink market, but saw its market share drop between 1999 and 2001.



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Finance

The finance department of the Coca Cola Company is responsible for

financial record keeping. This involves keeping records of money

received and paid out. The financial records will be used to produce

the annual reports for the shareholders so that they can see the

company performance. The Finance department is also responsible for

the management accounts of the business like marketing etc. The

Coca-Cola Company finance department is also responsible for making

budget of the company and for each department like marketing

department or research and development department. They will also be

involved in the planning process like taking over or any majordecision.

Packaging

The packaging department of The Coca-Cola Department is responsible

for the packaging of the products. They have to make the packaging

attractive so that that product meets the eyes of the consumers.

Bringing new products package is their responsibility. It works with

the companies bottling partners to produce an attractive combination.

Sales

The sales department of the Coca Cola Company is to coordinate the

selling program. They also have to make the distribution methods, etc.



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the information they needs and taking the complaints and passing

to the research and development departments who improves the products.

3.12PRODUCTS OF COCA-COLA

Coca-Cola serves in India some of the most recalled brands across the world,

Which include names such as Coca-Cola, Thumps up, Sprite, Fanta, along with

The Schweppes product range.

The acquisition of Thums Up brought some of the leading national soft drinks like

Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to

This, Kinley mineral water was launched in the year 2000.

The Company ranking up "firsts" in the introduction ofCanned and PET soft

drinks, vending machines and backpack dispensers for crowds of cricket

supporters.



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3.13 Brands Tagline

Thums Up - Taste the Thunder

Coca-cola - Open Happiness

Sprite - Seedhi Baat No Bakwass, Clear Hai

Limica - Fresh Ho Jao

Fanta - Go Bite

Maaza - Bina Guthli Wala Aam



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Bottles in Case in different Packs

COCA COLA

SLOGAN: -

THANDA MATLAB COCA- COLA

JO CHAHE HO JAYE COCA-COLA ENJOY

SAR UTHA KE PIYO

The world`s famous drink, the world 1s most valuable brand. he most recognizable

word across the world after OK .Coca Cola has truly remarkable heritage. Developed in

a brass pot in 1886, Coca-Cola is the most recognized and admired trademark around

the globe. Not to mention the best selling soft drink in the world.

In India .Coca Cola was the 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 the remote and inaccessible parts of the nation.



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THUMS-UP

SLOGAN: -

I WANT MY THUNDER"

"THUMPS UP TASTE THE THUNDER"

Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in

1993.Thums Up is a leading carbonated soft drink and most trusted brand in India.

Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely

masculine attitude. This brand clearly seeks to separate the men from the boys.Coca

Cola has also launched several contests for the promotion of Thums up like Hai Dum

and Ninja Jeeto Contest to attract the Youth. Coca Cola spent $ 3.5 million to beef up

advertising and distribution for Thums Up. By 2002, it had become India`s No.1 cola

drink India.



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MAAZA

SLOGAN: -

"Taaza Mango, Maaza Mango"

"Botal mein Aam, Maaza hain Naam".

Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit

juices and was available throughout the year. In 1993, Maaza was acquired by Coca-

Cola India. Maaza currently dominates the fruit drink category. It is available in SKUs of

200ml RGB, 250ml RGB, 125ml Tetrapak and 200ml Tetrapak



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SPRITE

SLOGAN: -

"SPRITE BUJHAYA ONLY PYAAS, BAKI ALL BAKWAAS"

"DHIKAWE PE MAT JAO APNI AKHAL LAGAO

In India, Sprite was launched in year 1999.Sprite is perceived as a youth icon. With a

strong appeal to the youth, Sprite has stood for a straightforward and honest attitude. Its

clear crisp refreshing taste encourages the today's youth to trust their instincts,

influences them to be true to who they are and to obey their thirst. Sprite is available

around the country in 200ml, 300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr

and 330ml cans.

Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth,

Sprite has stood for straight forward and honest attitude. Its clear crisp refreshing taste

encourages the todays youth to trust their instincts, influences them to be true to who

they are and to obey their thirst.



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3.14 Competitive Environment

Coca-Cola is a leading player in the Indian beverage market with a 60 per cent share in

the carbonated soft drinks segment, 36 per cent share in fruit drinks segment and 33

per cent share in the packaged water segment. In 2004, Coca-Cola sold 7 billion packs

of its brands to more than 230 million consumers across 4,700 towns and 175,000

villages. The company has doubled its volumes and trebled its profits between 2001

and 2004. Coca-Cola continues to re-affirm its commitment to India through active

Citizenship Efforts. All its plants in India partner with local NGOs to alleviate local

community issues in numerous small ways. It boasts of impeccable credentials on

quality. Coca-Cola has succeeded in spite of an extremely price-sensitive consumer

with entrenched beverage consumption habitstea, nimbu-paani (lemonade) and a

fragmented and geographically dispersed retail market, and a high tax environment.

The key competitors of Coca-Cola in the Indian beverage industry are as follows:

PepsiCo

PepsiCo stands for the major competitor of Coca-Cola, both worldwide as well in India.

Pepsi stands for the second largest carbonated soft-drinks maker in the world, next toCoca-Cola. So, there is always a never ending competition between the products of

both the companies. Pepsi cola gives a tough competition to Thums Up and Coca

Cola in the cola drinks segment. Again PepsiCos Seven Up and Mountain Dew

gives a cut throat competition to Coca Colas Sprite in the clear-lime segment. The

competition continues between Coca Colas Fanta and PepsiCos Mirinda, while

PepsiCos Slice competes with Coca Colas Maaza in the juice segment. In the juice

segment we again have PepsiCos Tropicana giving a fierce competition to Coca

Colas Minute Maid Pulpy Orange. In the mineral water segment PepsiCos Aquafina

competes with Coca Colas Kinley. In the soda segment too, Coca Cola Kinley soda

faces competition from PepsiCos Lehar Evervess soda.



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On the other hand, simultaneously, the returnable glass bottles are depalletized,

inspected and washed for the purpose of filling in the final product in it. This step

does not take place in the PET bottle line as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB) / capped (in

case of PET bottles), labeled and cased in order to be sent into the warehouse

for distribution.

3.16 Packaging Details

The following are the packaging details of the products offered by the Coca Cola

company for sale in India.

Coca Cola, Thums Up, Fanta, Limica, Sprite are available in 330 ml can, 200 ml,

and 300 ml returnable glass bottles; 500+100ml free,1.2liter, 1.5 litre and 2 litres

PET bottles.

Diet Coke is available in 330 ml can and 500 ml PET bottle.

Maaza is available in 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml

free and 1 litre + 200 ml free PET bottles and newly introduced 200ml Tetra

Pack.

Minute Maid Pulpy Orange is available in 400ml and 1 litre PET bottles.

Schweppes Soda Water is available in 300 ml returnable glss, 500+100 ml free

PET bottles.

Kinley Soda Water is available in returnable glass bottles, 500 + 100ml free and

1.5 litre PET bottles



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Brindavan Beverages Coca-Cola Pvt. Ltd. First established plant is

Parshakera. The largest one is in Bareilly. Parshakera plant has 3 RGB filling lines.

The RGB line operating at mechanical efficiency of 90% . Company doesn't have the

facility for filling Mazza (RGB and Tetra Pack) a Mango flavor drink of Coca-Cola , pet

bottling ,water plant.

3.18 Market Segmentation Model of Coca-Cola

Market can be segmented along 3 lines- Outlet volume,

Locality income

Channel cluster.

SEGMENTATION

Figure :- Segmentation Model


Channel Cluster

Locality IncomeOutlet Volume

Grocery

Eating & Drinking

Convenience

Low

Medium

High

Diamond

Gold

Silver

Bronze`


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Classification of outlets on the basis of volume:-

Table :- Classification of Outlets on the basis of Volume

Outlet classification Ko Vpo SLAB(phy C/S)Diamond >800

Gold 500-799Silver 200-499

Bronze


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E&D includes following outlets:

Fast Food: Self service with limited menu.

Pubs: Outlet selling alcoholic beverages and snack items.

Dhaba: Situated on roadside and market places catering cost effective

Indian food.

Convenience includes:

Pan Shop: Semi-temporary kiosk located near the road side. Selling

cigarettes, beverages and other confectionary items.

Outlet at petrol pumps: Convenience outlets selling top up items, may

be open till late at night or 24 hrs.

Travel and convenience kiosks: Permanent kiosks within the

airport/railways/bus stand/(inside or outside)selling only beverages or a

food and beverage kiosks.

TARGET MARKET

Cokes commercials basically based on young generations, so, the young generation is

the target market of Coke because they want to represent Coke with the youth and

energy but they also consider about the old people they take then as a co-target market.

FACTORS EFFECTING SALES

There are so many factors, which affects the sale of coke. Here we are discussing three

major factors which effects coke.

Per capita income

Competitors

Weather



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They believe on WHAT COLD THEY SOLD

Consumers availability in brands is basically works like:

Push availability

Pull consumers demand.

For this reason Coca-Cola have provided their coolers and freezers in the market. They

have maximum number of coolers and freezers in the market. They provide this

infrastructure free of cost just to provide child coke to their customer, which they want to

be purchase.

Their salesman and mechanics regularly visit all the shops where coke has its

infrastructure to check that either it is in proper condition or not, if not then they

immediately change or repair it.

3.19 Brand Order System of Coca-Cola

\



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"Coca-Cola came in blazing but mishandled itself and Thumbs Up. That makes

its recovery all the more remarkable." says Mr. C. Srinivasan, chairman of

business consultant AT Kearney India. Coca-Cola's Indian management, now

stable after recent flurry of departures, persuaded the US parent to persist with

India, and won $100 m to fix problems such as poor distribution. Its Atlanta

headquarters was won over because of India's potential. India's per capita

consumption of carbonated drinks is less than hall the level in Pakistan and

about 8 percent of China's. Mr. Gupta argued that closing the gap would only

come by chasing the rural consumer.

"We had to address the 75 percent (that lives in rural areas) and not just the 25

percent (in cities) and that meant using small-pack innovations," says Mr. Gupta.

"The only consumer goods companies that make it in India are those that sell

micro-sized products at low prices."

Coca-Cola's 200 ml bottle (down from 300 ml) sells for Rs.5, half the price of a

conventional sized bottle. To achieve a return on this "low margin, high volume"

strategy. Coca-Cola had to shrink its ballooning costs, while raising output in a

market growing at just 8-9 percent per year. Coca-Cola added 30 assembly lines,

including five plants; cut costly staff; revamped transport; shrunk bottles and

made them lighter and packed in smaller crates to increase a truck's carrying

capacity; added distributors and expanded the number of outlets in towns andvillages by a fifth to about 1 m. Coca-Cola's aim was to "lock in" retailers in

villages of at least 1,000 people connected to usable roads. One method was to

help those with no savings or access to formal credit to buy their costliest asset:

a fridge. The company negotiated big discounts from fridge producers, placing an

order equivalent to two months' output of the domestic fridge industry.



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Discounts were passed on to the retailers, cutting the average purchase price by

Rs.3,000 more than three months' wages in a village.

Finally, Coca-Cola dumped a global advertising campaign that was irrelevant to

the Indian market and adopted one featuring Bollywood stars. "The campaign is

finally speaking to the right market." says marketing consultant Mr. Alok Jain. The

adverts also loudly proclaimed the Rs.5 price benchmark, meaning retailers

could not overcharge.

THE RE-LOCALIZATION OF COCA-COLA :

A glance at the 1999 Annual Report of The Coca-Cola Company leaves you with

a strong impression of two words that seem to be very deeply-etched in every

statement made by the company - 'Consumer* and 'Localization'. The Chairman

Douglas Daft states in his address to shareholders that, " If there's one thing that

I've learned in my 30 years at Coca Cola it is - Think locally and act locally."

Coca -Cola's localization drive appears to be partly spurred by the adverse

impact on the image of the company, due to the various issues that cropped up

last year in different parts of the world. Like the product contamination in Belgium

and France, the problems with regulators in Europe, the racial discrimination

lawsuit in United States.



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In a recent article in The Financial Times, Mr. Daft talks of

how Coca-Cola whose basic success emanated from its strength of being a

'multi-local' business relying heavily on the insight of local business partners,

quite forgot the secret of its success and veered on the path of centralization. He

has staled in this article that Coca-Cola wandered off the right path and endured

a year of dramatic setback, by ignoring the changing global scenario and

continuing to believe that a strategy that was once successful will always yield

results. As he puts it "As the Century was drawing to a close, the world had

changed, and we had not. The world was demanding greater flexibility,

responsiveness and local sensitivity, while we were further centralizing decision

making, standardizing practices and were moving away from our traditional

'multi-local' approach".

The company in the 80's and 90's had focused on centralizing its operations for

enabling effective management of a vast global enterprise that was being spread

over 200 countries. It has now woken up to the fact that the world is changing

very fast today and that a localized management that can quickly respond to the

challenges and needs of the relevant market will be critical to success, rather

than a unified management at the center. And that is precisely what Coca-Cola

has set out to do. It appears to be handing out a greater degree of freedom and

responsibility to the frontline managers in their respective areas of operations. It

has decided to cut jobs and convert itself into a leaner structure. In India too, the

complex holding structure has been broken down and converted into a simplified

structure. A single holding company Hindustan Coca-Cola Holdings Pvt. Ltd and

one downstream subsidiary - Hindustan Coca-Cola Beverages - formed by the

merger of 4 bottling subsidiaries of Coca Cola and that of Schweppes now

operate in India. The parent has performed a comprehensive review of its Indian

bottling operations and has announced that it will be writing off $400mn worth of

assets in India in the first quarter of this year.



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The meeting hosted last week by the company to update investors on its

business strategies and outlook for the future also sang the same tune of how

members of the global Coca-Cola management team are implementing their "Think

Local Act Local" philosophy. The company's focus, according to the management,

will be to encourage higher consumption of non alcoholic beverages and the Coca-

Cola brands in every country. This will be achieved through an intense focus on

consumers, communities, customers, the Coca-Cola system and Coca-Cola people.

The Consumer focus strategy involves using innovative and tailored marketing

programs based on local consumer insights to enable the company to keep growing.

"We want to ensure that we have a tailored nonalcoholic beverage portfolio in everycommunity that touches consumers in locally relevant ways." states the annual

Report of the company. It gives the example of the company's innovative marketing

strategy in India, which leveraged on the Diwali Festival and the entrenched family

values in the Indian society to connect to the Indian consumer at a personal level. In

Mr. Daft's words "The 21st Century has taught us one important powerful lesson -

that the next big evolutionary step in going global has to be going local"..

4.2 RESEARCH FOR MARKETING STRATEGY

Focus on availability of products in market.

Focus on availability of product in the outlet.

Coke products visible for consumers.

More focus in rural area.

Regular market visit by market developer.

Distribution of product according to locality.

Extra focus on monopoly outlets.

Aggressive advertisement.



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4.4 PRICE STRATEGY:

Regarding the pricing policy or the price to the distributor is not disclosed to me,

but as done for the different product of the company, company has priced the product

same as that of its major competitor or the market leader.

PRICE

Trade Promotion

Coca Cola Company gives incentives to middle men or retailers in way a that they offer

them free samples and free empty bottles, by this these retailers and middle man push

their product in the market. And thats why coca cola seen more in the market. And they

have a good sale in the market because according to the expert which product seen

more in the market that sells more.

They do agreements with a shop keepers and stores to exclusive sale in that store.

These stores are called as KEY accounts in their local language.

And coke also invest heavy budget on these stores and offers them free samples and

free bottles and some time cash incentives.

4.4.1 Different Price In Different Seasons

Some times Coca Cola Company changes their product prices according to the season.

Summer is supposed to be a good season for beverage industry in India.

So in winter they reduce their prices to maintain their sales and profit. But normally they

reduce the prices of their pet bottles or 1 litter glass bottle.



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4.4.2 STRATEGIES OF GETTING GOALS I.E. HIGH PROFITS

To increase the price is the least thing, which Coke can adopt. There are so many ways

through which Coke can increase the profits. Some major ways are as follows.

Volume can be increased

Interest level of consumers

To take part in energetic festivals

How to increase the volume of consumers?

Coke can increase the volume by expanding the industry of coke. Through

advertisements, offering different interesting things to attract people towards this

product.

How to increase the interest level of consumers?

Coke is increasing the interest level of consumers by offering different flavors. For

example Coke is increasing the number of flavors in Fanta, this is one of

the product of coke. Through offering different flavors Coke can increase the Level of

consumers and through this profits can be gained.

How to take part in energetic events?

Coke is already taking part in the events like world cup cricket since last many years.

Coke offers different attractive things in their events and through this Coke gained high

profit and consumption of coke increased on these occasions.



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4.5 PLACE STRATEGY:

The Coca-Cola Company in India is governed from its corporate office located atBareilly. It governs the working of three zones covering whole U.P these zones are: -

Northern zone, Eastern zone, Western zone. These zones are divided in to various,

plants, which govern the area assigned to them. The areas are the various distribution

centers called distributors and C&F agents. Then comes the retailers/customer for the

company's product, they receive goods from distributors and C&F agents. Finally

consumer is there, having the product from the customer's shops or delivered to their

home, it is more clearly visible through this chart. The Coca-Cola Company, which gave

its reach to the mouth of billions of people all around the world having a wide

distribution, network. In India, the pace and speed at which Coca-Cola has widened its

business is really amazing. Distribution network is the biggest strength of the company.

Focus on availability of product in outlets:

There is big difference between the availability of products in market and outlets. Coca-

cola want that their product displayed in each outlet in market so it is important that the

product first available in market after that it put on outlets.

4.5.1 Focus on visibility of coke product in outlet:

The aim of coca-cola is that its product should be visible for the customers so

company gives to retailers racks so many display items.

Now a days the company is giving visicoolers to retailers for visible their chilled

product in market for more sales.



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More focus in rural area:

In early 2002 CCI launched a new advertising campaign for attract more rural

customers. The advertisements with India leading bollywood star Amir Khan. With

movie of Lagan.

The tag line of advertisement was Thanda Matlab Coca-Cola

4.5.2 REGULAR MARKET VISIT BY MARKET DEVELOPERS:

To know the position of cokes product in the market, coca-cola appoint some executive

those go in market and check availability, visibility of product, take care companies

assets, check visicoolers and talk to shopkeeper and take feedback about their product.

Distribution of product according locality:

Coca-cola Company distributes their schemes according to area. Area or place where

soft drinks sold in a large manner, on those place company gives good schemes to

shopkeeper and retailer .place like railway station, bus stand, film hall are consider in

this category. Place which have low selling, company gives small schemes to the

shopkeeper.

Extra focus on monopoly outlets:

Outlets which only sales coca-cola product and gives good sales to company, are

consider in this category company gives extra schemes, discount and make long

relationship. Problem of these kinds of outlets resolve as soon as possible.



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4.6 PROMOTION STRATEGY:

This part of the marketing is playing a very vital and important role in the current

situation in India. Looking at the competition and promotion and advertising budget of

both the companies coca cola and Pepsi, one can easily estimate the importance of

this. The promotion mix of Coca-Cola is divided in to Top line promotion and below

the line promotion.

Top line promotion includes the promotion designed and done by the

company's corporate office of Bombay TV ads, design of banners, and other POS done

by the company simultaneously all around India with no Difference in designs etc. fall inthis category. Below the line promotion includes the promotion schemes, publicity

material, POS display done by the company from zonal, plant, sales manager and area

sales manager level. . At the sales manager and area sales manager level the

promotion done exclusively for the cities in their respective area and other POS display.

While advertising explains the logics behind buying, sales promotion offers can

incentives to do so. Sales promotion operates at three levels.

At the level of consumer it is called consumer promotion e.g. free gifts, samples

and price offs.

At the level of dealers and distributors, it is allied trade promoting e.g. free goods

display contests, dealer sales contest, push money etc.

At the level of sale person it is called sales force promotion e.g. salesmens

contest, benches, sales rallies.

Conjunctionally the glamour in sales promotion is stolen by advertising. Advertising

expenses so far accounted for more than 60% of the total promotional budget.

Today sales promotion are rising rapidly with more and more bands flooding the market,

the pressure to occupy display space at retail outlet is more and retailers thus demand

more sales promotion efforts from their suppliers.



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Getting shelves

They gets or purchase shelves in big departmental stores and display their products inthat shelves in that style which show their product more clear and more attractive for the

consumers.

Eye Catching Position

Salesman of the coca cola company positions their freezers and their products in eye-

catching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion

Company also do sponsorships with different college and schools cafes and sponsors

their sports events and other extra curriculum activities for getting market share.

UTC Scheme

UTC mean under the crown scheme, coca cola often do this type of scheme and they

offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc.

This scheme is very much popular among children



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Figure :- Promotion Strategies

.



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4.6.1 Why COCA-COLA using SALES PROMOTION :-

Sales promotion is main tool for increasing sales so following causes for adopting sales

promotion.

To stimulate the demand by popularizing product.

To face competition effectively.

To keep the memory of products in mind of consumers.

To supplement the personal selling and advertisement.

To establish the large market segment.

To capture more market share from competitor.

To maintain the market.

To attract distributors towards its brand.

To attract more consumers by giving them free gifts on products.

To include middle man wholesaler and retailers to purchase goods in large

quantity by offer them more facility on higher trade more cash discount, bonus

etc.

To arrest seasonal decline in sales.

To assist sales man in increasing sales, achieving sales target and salesmans

activities for problem sales.

To help of new products this introduced in market recently.

To introduce such sales promotion methods as to adopt aggressive selling and

thereby increase sales.

To stimulate market research.



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4.6.2 FORMS OF SALES PROMOTION

Sales promotion is basically in 3 forms:

Consumer promotion:-Targeted final buyers.

Trade promotion:-Targeted retailers and wholesalers.

Sales force promotion:-Targeted the numbers of sales force.

1. CONSUMER SALES PROMOTION METHODS: Consumer sales promotion

methods are those methods which are directly at customers to induce them to

buy the companys product. Consumer sales promotion devices.

Free trails

Samples

Premium

Bonus stamps

Cash refund offer

2. TRADE SALES PROMOTION METHODS: - Trade promotion is an incentive

given to middle man to buy. Goods in large quantity from the producer or

manufacturer. The main sales promotion methods are such as:

Discount

Display and advertising allowance

Store demonstration

Free goods

Free tours etc.



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3. SALES PROMOTION METHOD: -sales promotion method is those methods

which intended to motivate the sales force to increase sales. These methods

support a sales man to perform his job more effectively and sincerely.

Bonus to sales force

Sales force contests

Sales meeting convention and conferences

4.7 DISTRIBUTION CHANNELS STRATEGY

Coca Cola Company makes two types of selling

Direct selling

Indirect selling

Direct Selling

In direct selling they supply their products in shops by using their own transports. They

have almost 450 vehicles to supply their bottles. In this type of selling company have

more profit margin.



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Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is very difficult

for them to cover all area of Pakistan by their own so they have so many whole sellers

and agencies to assure their customers for availability of coca cola products.

4.8 CHANNEL MANAGEMENT

The partner type relationship with bottlers franchise owned bottling operation [FOBO],

as well as company owned bottling operation [COBO] network of the channel

management mostly cover these type bottling. It is this way in Coca-Cola Indian

strengths in its marketing that gives it an edge. Every number of its sales team is

meticulously taught the merchandising and display skills that can leverage the reach of

the companys bottling network to achieve high visibility of the product.



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WHOS INVOLVED

Advertising can be thought of as a five-part business.

Advertisers who something use

Advertising agencies and are sometimes assisted by

Support Organizations sent their messages through

Media(generally mass) to potential

Consumers of the product, service.

Advertising is a key part of marketing, but far from being (as is often assumed) the sum

of it. Advertising is the use of media to inform consumers about something and or to

persuade them to do something in effect; it brings product and consumers together, and

then modulates the relationship between them.

WHAT IS ADVERTISINGIt is a mass communication of information intended to persuade buyer to buy product

with a view of maximizing a companys profits. The elements are.

It is a Mass Communication reaching large number of customers.

It makes mass production possible. (Helps the company reach economics of

scale).

It is a non-personal communication.

It is a commercial communication.

It is speedy communication.

In todays competitive world. It is an essential communication.



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i) To create a corporate personality or image.

ii) To build a company prestige.

iii) To keep the company name before the public.

iv) To emphasize company services and facilities.

v) To enable company salesman to see top executive consistently when

making sales calls, and

vi) To increase friendliness and goodwill towards the company.

Developing the campaign programmers. The advertising campaigns are

prepared by the advertising agencies, which work on behalf of their clients who

manufacture product or service enterprises, which have services to sell. The word

campaign is used because advertising agencies approach their task with a sum Blanca

of military fanfare in which one frequently hears words like target audience logistics,

zero in and tactics and strategy etc.

The account executive co-ordinates the work in a campaign. The creation of an

advertising campaign starts with an exploration of consumers habits and psychology in

relation to the product. This requires the services of statistical trained in survey

techniques and of others trained in social psychology. Statisticians select samples for

survey which are done by trained interviewers who visits individuals, included in the

sample and ask question to find out about their taste and habits. This enquiry often

leads to a change in a familiar product. For instance bathing soap may come in several

new colors or cigarette in a new packet or talcum powder in another size.

Such interviews are often quite essential to find out the appeal of advertising

message for a product that would be most effective with consumers.

After getting the data the account executive puts together the essential elements

of his clients brief, interprets the research findings and draws up what he calls the

"advertising strategy".



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4.9.6 STAGE IN ADVERTISING CAMPAIGN

Several steps are required to develop an advertising campaign the number of

stages and exact order in which they are carried out may vary according to

organizations resources, the nature of its product and the types of audiences to be

reached. The major stages/steps are:

1. Identifying and analyzing the advertising.

2. Defining advertising objects.

3. Creating the advertising platform.

4. Determining the advertising appropriation.

5. Selection media plan.6. Creating the advertising message.

7. Evaluating the effectiveness of advertising.

8. Organizing of advertising campaign.

1. Identifying & Analyzing the Advertising target:

Under this step it is to decided as to whom is the firm trying to reach with the

message. The advertising target is the group of people towards which advertisements

are aimed at four this purpose complete information about the market target i.e. the

location and geographical location of the people, the distribution of age, income, sex,

educational level, and consumers attitudes regarding purchase and use both of the

advertising product and competing products is needed with better knowledge of market

target, effective advertising campaign can be developed on the other hand, if the

advertising target is not properly identified and analyzed the campaign is does likely to

be effective.



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4.9.7 AGGRESSIVE ADVERTISEMENT:

Coca-cola use the concept of aggressive advertises for sales promotion. Company

introduces different schemes and advertisements build brand image and establishawareness.

Brand ambassador play an important role. Brand ambassador encourage the today

youth to trust their instincts, influence them. Successful advertisement campaigns like

Taaza Mango, Maaza Mango and Bottle Mein Aam, Maaza Hai Naam.

Coca-cola advertisement came Life Ho To Asi were very popular and had entered in

youth vocabulary.

In 2002 company launched the campaign Thanda Matlab Coca-Cola which is sky

rocketed the brand to make. Coca-Cola Lunched So Many Advertising For Market

Capture Amir Khans Advertisement Oye Soniyo Thanda Piyo

4.10 PUSH & PULL STRATEGY

Push Strategies: BBPL is using Push strategy in which they use its sales force

and trade promotion money to induce intermediaries to carry, promote and sell

the product to end users i.e. consumers.

For Example - As BBPL is giving free pet bottles and other trade schemes

to distributors, agency owners and retailers.

Pull Strategies: BBPL is also using Pull strategy in which they are using

advertising and promotions to persuade consumers to ask intermediaries for the

company brand product by this way BBPL inducing customer to order to fromshopkeeper.

For Example BBPL is using flanges, display racks, tier racks, standees,

mobile hangers and visicooler brand strips.



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Which brand of soft drink you prefer?

0%

20%

40%

60%

80%

100%

PepsiCo

Coca Cola

39 61

Sales

Sales

INTERPRETATION:-

When asked about particular brands consumers responded the two colas namely Pepsi

and coke as their favorites. Out of which Coca Cola was leading with 61% while Pepsi

came second at 39%, It was also observed that cola segment was preferred by more

than 70% of the total consumers interviewed.

GRAPH NO:-1.2

Why do you prefer it?



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INTERPRETATION:-

When asked to the consumers responded availability of a particular brand of soft drink

of the most important in their purchase decision. Through advertising and sales

promotion schemes were also very important while making their final purchase decision

as it is an impulse purchase, consumers often related their purchase with the recall of

an ad which their viewed on television. Apart from easy availability and promotionalschemes price was another major driving factor in the purchase of a soft drink for

consumers (Pet bottles prices vary).


Advertising

& Schemes

29%

Preference

19%

Easy

Availability

31%

Price

21%


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GRAPH NO:-1.3

When you talk of soft drink advertising which all brands come to your mind

(please specify in order of recall)?

INTERPRETATION:-

When the above question was asked to the consumers they could easily recall Pepsiand Coke ads almost equally. Though Pepsi had a very minor edge. This question

also shows Pepsis aggressive nature in advertising, which is its trademark the world

over. Pepsi has always been known as an aggressive advertiser and this is also true

in Indian market. Thums up was a distant third because of its continuous attacks on

Pepsi.


Others

6%Limca

9%Thums up

16%

Coke

29%

Pepsi

35%

Maaza

5%


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GRAPH NO:-1.5

Which form of advertising and sales promotion strategies do you think is

most effective for soft drink industry?

INTERPRETATION:-

Consumers think that television advertising has a major impact on the sales of soft

drinks. As television reaches maximum urban homes, which are the major market of the

soft drinks, they have a direct impact on the consumers behavior. Apart from that

newspaper advertising is also important. Apart from these advertising media, sales

promotion schemes from the next important strategy.

GRAPH NO:-1.6


29

8

41

139

0

510

15

20

2530

35

40

45

Sales

Promotion

Schemes

Television

Advertising

Outdoor

Advertising


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According to you which companys advertising are more

creative and appealing?

57

43

0

10

20

30

40

50

60

PepsiCo Coca Cola

INTERPRETATION:-

HTA, the advertising agency for Pepsi, has come up with many innovative ads in the

past, creating a good impression in the mind of consumers. Most of the consumers

interviewed responded that they like Pepsi ads more than that of Coke. Recently Coke

has also come up with few ads, which are specifically by the consumers.

ANALYSIS OF RETAILERS

GRAPH NO:-2.1



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Which segment of soft drink consumer generally asked

for? (Rank them on scale 1, 2, 3)1 is max. 3 is min.

INTERPRETATION:-

As it is an apparent from the above graph when asked about which segment the

consumers generally asked for the retailers respondent that Cola by itself was the

largest selling soft drink amounting to 61% of total soft drink sales. Orange came a

distant second at 17% followed by cloudy lemon, which constituted another 14%.

GRAPH NO:-2.3

Why do think that a consumer ask for a particular brand of soft drink?


51

27

14

4 4

0

10

20

30

40

50

60

Cola Orange Cloudy

Lemon

Clear

Lemon

Others


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INTERPRETATION:-

The consumer preferences are very fragile and not firm. Consumers preference usuallychanges with the various schemes and the advertising. Which has major impact on their

purchase decision? Price is another critical factor on which the consumer purchase

decision is based. It is often found that the consumers change their preference in

accordance with various price discounts offered to them. Availability is another major

aspect, which decides the actual purchase. A consumer may change his or her


Price

21%

Availability

23%Brand

Preferences

17%

Advertising&

Promotion

39%


89/100


90/100


company also acts as sources of sale. The brand preference

and loyalty is by far the least important factor driving the sale.

GRAPH NO:-2.5

What are the attributes that influence you to decide which brand of soft

drink to keep? (Rank them on scale of 1-4).

INTERPRETATION:-

The attributes that influence a retailer to keep a particular brand of soft drink are pro

motional schemes brand name consumer pill and company support. Out of these

factors promotional scheme again is the major factor that influences any retailer to

keep the stock of particular brands. Apart from this consumer pull and brand name

acts are the major influencers for the retailers to keep stork of a particular soft

drinks. One more factor which affects the retailers to keep stock of particular soft


12

18

43

27

0

510

15

20

25

30

35

40

45

50

Company

Support

Consumer

Pull

PromotionalSchemes

Brand

Name


91/100


drinks is the company support which is provided in from of visi

coolers, banners, sign boards etc. through the kind of company support provided by

the majors is almost the same.

GRAPH NO:-2.6

Does the promotional scheme of the company have any effect on the sales

of soft drinks brands?

INTERPRETATION:-


Yes

71%

No

29%


92/100


93/100


Availability in the chilled from affects the purchase decision.

This has made both companies to push its sales and to increase its retail

distribution by offering Visi Coolers to retailers.

While there is no restriction on consumption of soft drinks by any age group, the

main consumers of this market are people in the age group of 30 and below.

Product differentiation is very low, as all the products taste the same. But brand

loyalty is high in the case of kids and people in the age group of 20-30 years.

Consumers are sensitive to the outlay where the purchase of beverages is

concerned. Hence the market is price sensitive.

Due to the high cost of soft drinks, a lot of times consumers prefer beverages like

tea, coffee or other drinks like sharbat and squashes.

RETAILERS PERCEPTIONS

Retailers stated that the consumers are loyal to the particular segment of the

soft drink i.e. cola, orange or lemon. But as far the loyalty for the brands in

each segment is concerned, it is not very significant.

43% of the retailers surveyed told that in soft drinks advertising is the key

component in driving sales. While 32% stated promotional schemes and 20%

brand loyalty as the reason.

As consumers are not very brand loyal where the purchase of soft drinks is

concerned, the retailer push becomes a critical issue. They usually sell the

product in which they get the maximum benefit. For this, the companies try to

offer them higher margins



94/100


SUGGESTIONS

Although it is very early to suggest any thing to such a internationally

renounced company like Coca-Cola having in the mature stat e of marketing yet for thelocal market, client distributors & retailers, based on the interactions & feed backs from

various outlets, segments of customers I would like to suggest as under:

Company should promote good and heart felt Slogans and Jingles.

Company should provide others small advertising items in the form of garlands,

hangers recto the shopkeepers as there are cheap and Q good source of

advertising.

Company should sponsor important event like World cup, Asian & other

tournament, any event related to film awards and programmers of local

importance.

Company, If possible should give schemes to the customers through

newspapers having provision for discounts in purchasing its products.

Company should organizing campaigns & distributes caps, Key rings, glasses,

serving tray, passels on which company packages are branded.



95/100


Chilling equipments should provide on a cost basis.

Chilling equipments (like family freeze, vizzi or Electric bottle cooler) should be

provided to the outlets

If there is any default found in the chilling equipment provided by the company

should be repaired quickly when so required.

Company should ensure good supply of stock.

Company should go for more monopoly counters.

There should be surprise check by the company to endure whether benefits of

schemes provided by the company reach outlets or not and take corrective

measures in case of default.

Company should arrange seminars and meetings with dealers on an ongoing

basis on monthly interval.

A special shopkeepers care cell should be formed to listen the shopkeepers

grievance on the lines of customer care cell.

No. of hoardings should be increased.

. Some free gifts should also be given on established Brands to stimulance the

retailer.



96/100


Company should elaborate public announcement on

important days like Health day, Anti drug day world aids day etc.

Company should tap colleges and school canteens. They should be given extra

discounts as these outlets give potential long run customers to the company.

CONCLUSIONS

e have concluded from this detailed report that despite the fact Coca-colacurrently occupies the market leadership position. The Sampling activity

was a good first step into the area of Marketing and Sales. It gave good

amount of exposure mainly because after being trained, trainees were given an

opportunity to carry out the process ourselves.

W I had a project on marketing strategy & survey of right execution for

coca-cola in Bareilly. The research project work conduct in different area

of Bareilly.

This even helped in the polishing of communication skills, a must-have to survive

and make it big in the present world. It even gave a good understanding of

behavior of customers when placed in different situations. It was a good

opportunity to work on the skill of patience, as a large number of customers were

to be dealt with. It helped in developing the kind of relations one needs to uphold

in the corporate world and it helped in building up the right attitude.

Marketing strategy of Coca-cola is better than its main competitor.

The market share of Coke product is higher than the other products.



97/100


Thums-up is the leading brand of Coca-cola in different regions.

Advertising campaign of Coca-cola can easily on sign board, banners at outlet.

I found proper display of products in racks and in coolers.

Sales of products are increasing rapidly at Bareilly market where I do work study.

BIBLOGRAPHY

BOOKS:-

Chunawall S.A. : Essentials of Marketing Research

Kottler Philip : Marketing Management

Kothari C.R. : Research Methodology

Sherlerkar S.A. : Marketing Management

Schiff man Leon. G. : Leslie Lazar Kaunk

Magazines:-

Business world

Coca-col

new master manjeet

Documents