MBA (FT) Project Report

“A Study on the Effectiveness of RED (Right Execution Daily) on outlet Activation by CocaCola”

{A Project Report submitted in partial fulfillment of the requirements of the degree of Master of Business Administration (full time) of Dibrugarh University}

Sandeep Das

Meghna Borgohain

Centre for Management Studies

DIBRUGARH UNIVERSTY

December 2013

GUIDE CERTIFICATE

This to certify that the project report entitled, “A study on the effectiveness of RED(Right Execution Daily) on Outlet Activation by CocaCola” submitted by Mr. Sandeep Das and Miss. Meghna Borgohain have been prepared under my strict supervision and guidance during the period October-December 2013 as partial fulfillment of the requirements for the Degree of Master of Business Administration (MBA) under Dibrugarh University.

It is further certified that the said project report has not been submitted anywhere for any other purpose previously.

I wish them a successful career and a prosperous life ahead.

Ms. Tapati Sharma

Assistant Professor

Centre for Management Studies

Dibrugarh University

Dibrugarh- 786004

CERTIFICATE FROM CENTRE HEAD

This is to certify that Sandeep Das and Meghna Borgohain students of MBA 3rd

Semester of CMS, Dibrugarh University has completed the project titled “A study on the effectiveness of RED(Right Execution Daily) on Outlet Activation by CocaCola ” which is purely an academic study and the information gathered will not be provided to any other Institutions for similar purpose.

I wish them successful career and prosperous life ahead.

Dr. Pratim Barua

Director (Hony.)

Centre for Management Studies

Dibrugarh University

Dibrugarh.

DECLARATION

We, the undersigned hereby declare that this project report written and submitted by us under the guidance of Ms Tapati Sharma, Assistant Professor of CMS, Dibrugarh University, Dibrugarh is our original work. The empirical findings in the report are based on the data collected by me, and we have not copied from any research report submitted by anyone to any University anywhere earlier.

Date:

Sandeep Das

Meghna Borgohain

MBA 3rd semester

2012 Batch

CMSDU

____________________

Countersigned

(Ms. Tapati Sharma)

Assistant Professor, CMS

Dibrugarh University

Dibrugarh-786004

ABSTRACT

This study is aimed to find the effectiveness of the activation elements which are

under RED (Right Execution Daily) and is a strategy of CocaCola. This was done by

means of a quantitative study through a structured research survey completed by a

sample of twenty-six respondents. The survey has been done to identify the suitable

activation element and its impact in sells.

____________________

Countersigned

(Ms. Tapati Sharma)

Assistant Professor, CMS

Dibrugarh University

Dibrugarh-786004

Page V

CONTENTS

Abstract V

List of figures and tables VIII

Preface IX

Acknowledgement X

1. Introduction 1-3

1.1 Introduction 1

1.2 Company profile 2

1.3 Coca Cola in India 3

2. Research Methodology 4-5

2.1 Sampling Plan 4

2.2 Sampling Technique Used 4

2.3 Sources of Data Collection 4

2.4 Objectives of the study 4

2.5 Scope of the Study 5

3. Analysis and Interpretation 6-17

4. Conclusion 18-19

4.1 Findings 18

4.2 Limitation 18

4.3 Recommendation 19

Annexure 1-Bibliography

Annexure 2- Questionnaire

Executive Summary

Project title: “A study on the effectiveness of RED(Right Execution Daily) on Outlet Activation by CocaCola”

Location: H.S Road , Dibrugarh

Duration of study: 3 Months

Name of the Student: Sandeep Das, Meghna Borgohain

Project Guide: Ms. Tapati Sharma

Faculty Member, Centre for Management Studies

Dibrugarh University.

Objectives of the study:

a) 1. To Study the impact of activation element in sells.

b) To identify the best activation element and its impact in sell.

Scope of the study:

The study is confined to Dibrugarh town.

List of Tables and Figure

1. Company profile 1.2

2. Effective change in the current market situation by RED (Right Execution Daily) 3.1.1

3. Increase of sell in your outlet by introduction of RED (Right Execution Daily) by CocaCola 3.2.1

4. The activation element (such as a Visicooler) has an impact on sell 3.3.1

5. Sells Generating Asset (SGA) has an impact on Sells if it is kept outside the outlet 3.4.1

6. Activation element that plays role in sales in the Eating and Drinking outlet3.5.1.1

7. Activation element that plays role in sales in the Grocery outlet.3.5.2.1

8. Activation element that plays role in sales in the Convience outlet 3.5.3.1

9. Opportunity to choose your own choice of activation element 3.6.1

10. Activation element delivery in time 3.7.1

11. Availability of any such activation element where most of the products of CocaCola are advertised together 3.8.1

12. Features such as Quantity and Price of the various products of Cocacola whether mentioned in most of the activation elements.

3.9.113. The best activation element according to the owner of the outlet.

3.10.1

Page VIII

PREFACE

Research report is considered as a major component of research study. Unless the findings are made known to others the purpose of research is not well served. This mini project report is the outcome of the project study made under the Paper-BM-303 “Project Study”, in the 3rd Semester of the MBA Course in Dibrugarh University.

The study has been pursued on. “A study on the effec tiveness of RED(Right Execution Daily on Outlet Activation by CocaCola” In this report, methodology of the study, the analysis of the data procured in the form of questionnaire, the findings, the conclusions and the suggestions of the study has been stated. On the basis of this study, some findings and recommendations are put forward with a hope that this report will prove beneficial to the Outlets in Dibrugarh town in some way.

Page IX

ACKNOWLEDGEMENT

Despite all the hurdles and difficulties we have been able to complete the project with ease and self confidence. This has been possible because of the support and guidance made available by the institutional guide. We indebted to all the peoples who extended their valuable help in connection with our project work.

We acknowledge the generosity of our project to Ms. Tapati Sharma, Faculty member of Centre for Management Studies for her supervision and guidance in carrying out this project work.

Last but not the least, we would like to acknowledge our thanks to all our family members and our friends who has been the real source of inspiration behind the whole study and our personal thanks are due to all the respondents for their responses to the questionnaire served to them.

Page X

Page 1

1. INTRODUCTION

1.1 INTRODUCTION OF COCA COLA COMPANY

Coca-Cola, the product that has given the world its best-known taste was born in

Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s Leading

manufacturer, marketer and distributor of non-alcoholic beverage Concentrates and

syrups, used to produce nearly 400 beverage brands. It Sells beverage concentrates

and syrups to bottling and canning operators, Distributors, fountain retailers and

fountain wholesalers. The Company’s Beverage products comprises of bottled and

canned soft drinks as well as Concentrates, syrups and not-ready-to-drink powder

products. In addition to this, it also produces and markets sports drinks, tea and

coffee. The Coca-Cola Company began building its global network in the 1920s. Now

Operating in more than 200 countries and producing nearly 400 brands, the Coca-

Cola system has successfully applied a simple formula on a global Scale: “Provide a

moment of refreshment for a small amount of money- a Billion times a day.”The

Coca-Cola Company and its network of bottlers comprise the most Sophisticated and

pervasive production and distribution system in the world. More than anything, that

system is dedicated to people working long and Hard to sell the products

manufactured by the Company. This unique worldwide system has made The Coca-

Cola Company the world’s premier Soft-drink enterprise. From Boston to Beijing,

from Montreal to Moscow, Coca-Cola, more than any other consumer product, has

brought pleasure to Thirsty consumers around the globe. For more than 115 years,

Coca-Cola Has created a special moment of pleasure for hundreds of millions of

people every day. The Company aims at increasing shareowner value over time. It

accomplishes this by working with its business partners to deliver Satisfaction and

value to consumers through a worldwide system of superior Brands and services, thus

increasing brand equity on a global basis. They Aim at managing their business well

with people who are strongly committed to the Company values and culture and

providing an appropriately controlled environment, to meet business goals and

Objectives. The associates of this Company jointly take responsibility to ensure

compliance with the framework of policies and protect the Company’s assets and

resources whilst limiting business risks.

Page 2

1.2 COMPANY PROFILE

Name THE COCA-COLA COMPANY

Type Public

Industry Beverage

Founded 1892

Headquarters Atlanta, Georgia, U.S.

Area served Worldwide

Operational Reach 200+ countries

Key people Muhtar Kent (Chairman and CEO), Ahmet Bozer (Exec. Vice Pres.)

ProductsMore than 3300 products including diet and regular sparkling beverages, and still beverages such as 100 percent juices, juice drinks, waters, sports and energy drinks, teas and coffees, etc.

Revenue US$48.01 billion (2012)

Operating income US$10.84 billion (2012)

Net income US$9.01 billion (2012)

Total assets US$86.17 billion (2012)

Total equity US$32.79 billion (2012)

Employees 146,200 (Dec 2011)

Website Coca-ColaCompany.com

Page 3

1.3 COCA-COLA IN INDIA

Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than

reveals its formula to the Government and reduces its equity stake as required under the

Foreign Regulation Act (FERA) which governed the operations of foreign companies

in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of

16 years, with its launch in Agra. An agreement with the Parle Group gave the

Company instant ownership of the top soft drink brands of the nation. With access to

53 of Parle’s plants and a well set bottling network, an excellent base for rapid

introduction of the Company’s International brands was formed. The Coca-Cola

Company acquired soft drink brands like Thumps Up, Gold spot, Limca, Maaza, which

were floated by Parle, as these products had achieved a strong consumer base and

formed a strong brand image in Indian market during the re-entry of Coca-Cola in

1993.Thus these products became a part of range of products of the Coca-Cola

Company. In the new liberalized and deregulated environment in 1993, Coca-Cola

made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian

bottling arm of the Coca-Cola Company. However, this was based on numerous

commitments and stipulations which the Company agreed to implement in due

course. Coca-Cola is made up of 7000 local employees, 500 managers, over 60

manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17

Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract

Packers that facilitate the manufacture process of a range of products for the

company. It also has a supporting distribution network consisting of 700,000 retail

outlets and 8000 distributors. Almost all goods and services required to cater to the

Indian market are made locally, with help of technology and skills within the

Company. The complexity of the Indian market is reflected in the distribution fleet

which includes different modes of distribution, from 10-tonne trucks to open-bay

three wheelers that can navigate through narrow alleyways of Indian cities and

trademarked tricycles and pushcarts.

Page 4

2. RESEARCH METHODOLOGY

The methodology used to analyze the project is mainly based on survey method and the survey was conducted through questionnaire and includes direct contacts with the owners of the outlet. The area of the research was restricted to H.S. Road, Dibrugarh which is the hub of the Dibrugarh Town. While conducting the study we approached various stores, shops and outlets within the area.

2.1 Sampling Plan:

a) Sampling unit: owners of the outlets.

b) Sample size: 26 respondents.

2.2 Sampling Technique used:

a) Convenience Sampling or Purposive Sampling

2.3 Sources of Data Collection:

a) Sources of Primary data:

Gathered information through scheduled questionnaire.

Direct interview with the owners of the outlet.

Observation was also involved.

b) Sources of Secondary data:

Websites:

I. www.cocacolacompany.com

II. www.coca-colaindia.com

III. www.wikipedia.com

2.4 OBJECTIVE OF THE STUDY

a) To Study the impact of activation element in sell.

b) To identify the best activation element and its impact in sell.

Page 5

2.5 SCOPE OF THE STUDY

a) It helps to find out the promotion activities of the company and helps to make

relevant changes according to their competitors.

b) RED helps to maintain the outlet’s in a well designed manner so that it can

attract more customers and thereby increase the sales.

c) It helps in understanding the impact of S.G.A (Sell Generating Assets) on

sales.

Page 63. DATA ANALYSIS AND INTERPRETATION

3.1 Effective change in the current market situation by RED (Right Execution Daily).

Table 3.1.1 {Table showing effective change in the current market situation by RED (Right Execution Daily)}

Particulars Number of respondent Percentage (%)

Yes 17 65.38No 9 34.62Total 26 100

65.38%

34.62%

yesno

Figure 3.1.1 {Pie- Chart showing effective change in the current market situation by RED (Right Execution Daily)}

Interpretation: - It can be seen from the above table and figure that 65.38 % of the respondents says thinks that RED (Right Execution Daily) strategy has shown effective change in the current market situation while the rest 34.62 % thinks that it has not shown any change.

Page 73.2 Increase of sell in your outlet by introduction of RED (Right Execution

Daily) by CocaCola.

Table 3.2.1 {Table showing increase of sell in your outlet by introduction of RED (Right Execution Daily) by CocaCola}

Particulars Number of respondent Percentage (%)

Yes 24 92.31No 2 7.69Total 26 100

92.31%

7.69%

YesNo

Figure 3.2.1 {Pie- Chart showing increase of sell in your outlet by introduction of RED (Right Execution Daily) by CocaCola}

Interpretation:- From the above table and chart it can be seen that 92.31 % of the respondents think that introduction of RED by CocaCola has resulted in sells in their outlet. Whereas, 7.69 % of the respondents thinks that the sells in their outlet didn’t increase.

Page 8

3.3 Activation element (such as a Visicooler) has an impact on sells.

Table 3.3.1 {Table showing the activation element (such as a Visicooler) has an impact on sells}

Particulars Number of respondent Percentage (%)

Yes 26 100No 0 0Total 26 100

1

YesNo

Figure 3.3.1 {Pie- Chart showing activation element (such as a Visicooler) has an impact on sells}

Interpretation: - From the above table and figure it can be seen that 100 %, that is, all the respondents says that an activation element has an impact on sells.

Page 9

3.4 Sells Generating Asset (SGA) has an impact on Sells if it is kept outside the outlet.

Table 3.4.1 {Table showing Sells Generating Asset (SGA) has an impact on Sells if it is kept outside the outlet}

Particulars Number of respondent Percentage

Yes 19 73.08No 7 26.92Total 26 100

73.08%

26.92%

YesNo

Figure 3.4.1 {Pie- Chart showing Sells Generating Asset (SGA) has an impact on Sells if it is kept outside the outlet}

Interpretation:- It can be seen from the above table and figure that 73.08 % of the respondents says that if the Sells Generating Asset(SGA) is kept outside their outlet, it has an impact on their sells. Whereas, 26.92 % of the respondents feels that it does not make any impact on their sell.

Page 10

3.5 Activation element that plays an important role in sells.3.5.1 Eating and Drinking

Table 3.5.1.1 (Table showing the activation element that plays role in sales in the Eating and Drinking outlet) (12 outlets)

Option Number of respondent Percentage (%)

Table Top 0 0Combo 0 0

Glow Signboard 12 100Total 12 100

100%

Table topComboGlow Signboard

Figure 3.5.1.1 (Pie-Chart showing the activation element that plays role in sales in the Eating and Drinking outlet) (12 outlets)

Interpretation: - Out of the 26 samples, 12 samples were the outlets (restaurants/eating and drinking facility shops/Hotels) who had eating and drinking facilities. From the above table and chart we can see that all the 12 outlets, that is, 100 % of the respondents say that Glow Signboard is the activation element that plays an important role in sells.

Page 113.5.2 Grocery

Table 3.5.2.1 (Table showing the activation element that plays role in sales in the Grocery outlet) (14 outlets)

Option Number of respondent Percentage (%)

Mobile Hanger 0 0

3 Tier Rack 0 0Shelf Display 14 100Total 14 100

100%

Mobile Hanger3 Tier RackShelf Display

Figure 3.5.2.1 (Pie-Chart showing the activation element that plays role in sales in the Grocery outlet) (14 outlets)

Interpretation: - Out of the 26 samples, 14 samples were the Grocery outlets. From the above table and chart we can see that all the 14 outlets, that is, 100 % of the respondents say that Shelf Display is the activation element that plays an important role in sells.

Page 12

3.5.3 Convenience

Table 3.5.3.1 (Table showing the activation element that plays role in sales in the Grocery outlet) (0 outlets)

Particulars Number of respondent Percentage (%)

Mobile Hanger 0 0

3 Tier Rack 0 0Shelf Display 0 0Total 0 0

Interpretation: -Out of the 26 samples there were no such outlets that fell under Convenience. Hence no further interpretation can be done.

Page 13

3.6 Opportunity to choose your own choice of activation element.

Table 3.6.1 (Table showing the Opportunity to choose your own choice of activation element)

Particulars Number of respondent Percentage (%)

Yes 4 15.38No 22 84.62Total 26 100

15.38%

84.62%

YesNo

Figure 3.6.1 (Pie-Chart showing the Opportunity to choose your own choice of activation element)

Interpretation: - It can be seen from the above table and chart we can see that only 15.38 % of the respondents say that they get an opportunity to choose their own choice of activation elements. Whereas, 84.62 % of the respondents say that they don’t get the opportunity to choose their own kind of activation element.

Page 14

3.7 Activation element delivery in time.

Table 3.7.1 (Table showing the activation element delivery in time)

Particulars Number of respondent Percentage (%)

Yes 20 76.92No 6 23.08Total 26 100

76.92%

23.08%

YesNo

Figure 3.7.1 (Pie-Chart showing the activation element delivery in time)

Interpretation: - From the above table and chart it can be seen that 76.92 % of the respondents say that they get the activation element in time and at the specified date. Whereas 23.08 % of the respondents say that the delivery of activation elements are delayed.

Page 153.8 Availability of any such activation element where most of the products

of CocaCola are advertised together.

Table 3.8.1 (Table showing availability of any such activation element where most of the products of CocaCola are advertised together)

Particulars

Number of respondent Percentage (%)

Yes 3 11.54No 23 88.46

Total 26 100

11.54%

88.46%

YesNo

Figure 3.8.1 (Pie-Chart showing the availability of any such activation element where most of the products of CocaCola are advertised together)

Interpretation: - From the above table and chart it can be seen that only 11.54% of the respondents say that there is availability of such activation element where most of the products of are advertised together. Whereas 88.46 % of the respondents say that there is unavailability of such activation element.

Page 16

3.9 Features such as Quantity and Price of the various products of Cocacola whether mentioned in most of the activation elements.

Table 3.9.1 (Table showing the features such as Quantity and Price of the various products of Cocacola whether mentioned in most of the activation elements)

Particulars Number of respondent Percentage (%)

Yes 4 15.38No 22 84.62

Total 26 100

0.1538

84.62

YesNo

Figure 3.9.1 (Pie-Chart showing the features such as Quantity and Price of the various products of Cocacola whether mentioned in most of the activation elements)

Interpretation: - From the above table and chart it can be seen that only 15.38 % of the respondents say that the features such as Quantity and Price of the various products of Cocacola are mentioned in most of the activation elements there is availability of such activation elements. Whereas, 84.62 % of the respondents say that these features are not there.

Page 17

3.10 The best activation element according to the owner of the outlet.

Table 3.10.1 (Table showing the best activation element according to the owner of the outlet)

Particulars Number of respondent Percentage (%)

Table Top 0 0Combo 0 0Glow Signboard 12 46.15Mobile Hanger 0 0Shelf Display 14 53.853 Tier Rack 0 0Road Stand 0 0Total 26 100

46%

54%

Table TopComboGlow SignboardMobile HangerShelf Display3 Tier RackRoad Stand

Figure 3.10.1 (Pie-Chart showing the best activation element according to the owner of the outlet)

Interpretation: - From the above chart it can be seen that 53.85 % of the respondents say that the best activation element is the Shelf Display. Whereas, 46.15 % of the respondents says that Glow Signboard is the best activation element.

Page 18

4. CONCLUSION

4.1 Findings

The findings of our study are: -

a) From the study we can say that RED strategy has a positive impact in sells.b) When a sells Generating Asset (SGA) is kept outside the outlets, it has a

positive impact in sells.c) From the study it can be said that the strategy of RED is effective on Outlet

Activation.d) Many activation elements are not provided to the outlets.e) From the study we can say that the elements that play an important role in

sells are the Glow Signboard and the Shelf Display.f) The best activation elements are the Glow Signboard and the Shelf Display.

4.2 Limitations

The limitations of our study are: -

a) Since the outlets are based consumer goods which requires a large sample to have an accurate study, a sample size of 26 respondents was too small for it.

b) The result of the survey are based upon crucial assumptions like:

I. The respondents know right answer of the questions put to them.II. They are willing to give the right answers.

III. Strictly based on the responses of the retailers.c) It was difficult to interrogate with the owners of the outlets for lack of time

and there busy schedule.d) The findings may not be very much relevant as most of the activation

elements were not present in the outlets. e) Some of the owners of the outlets were not very participative which didn’t

help to fetch the full information.

Page 19

4.3 Recommendations: -

a) The RED strategy can be more effective if the owners of the Outlet are given more opportunity to choose their own choice of activation elements.

b) Scheme based activation elements can be introduced.c) There should be impactful communication of the price of the coca-cola

products in each and every outlet through activation elements.

d) Activation elements should be provided at right time to each small and large outlet in order to promote the sales of the products.

e) All the type of activation elements should be provided to the outlets.f) Seasonal wise activation elements can be introduced.

Annexure 1- Bibliography

Books

[1] Appannaiah, Reddy, Ramanath (2010) Business Research Methods. Mumbai : Mrs. Meena Pandey

Websites

[2] Coca Cola India Company History. Retrieved Nov 01, 2013, fromhttp://www.coca-colaindia.com/ourcompany/company_history.html

[3] http://en.wikipedia.org/wiki/The_Coca-Cola_Company retrieved Oct 30, 2013 from Dibrugarh.

Annexure 2- Questionnaire

Dear Sir/Madam,

We are the students of Centre for Management Studies, Dibrugarh University and doing our MBA Full Time Programme. We are doing an academic project as part of our course requirement under Ms. Tapati Sarmah, Assistant Professor, Centre for Management Studies, Dibrugarh University and our topic is “The Effectiveness of RED(Right Execution Daily) on Outlet Activation by CocaCola”. We would therefore request you to kindly submit us the following information so as to help us complete our project. The information will be strictly for the purpose as has been mentioned and would be treated with strict confidentiality.

Thanking you.

Yours faithfully,Sandeep Das,Meghna Borgohain,3rd Semester, MBA (FT), Centre for Management Studies,Dibrugarh University.

Name(Optional): ...........................................................................................................

Name of the Store/Shop/Outlet: ..................................................................................

Address: .........................................................................................................................

(Please tick in the appropriate space provided)

1. Has RED (Right Execution Daily) strategy shown any effective change in the

current market situation?

Yes No

2. Because of the introduction of RED (Right Execution Daily) by CocaCola,

does it show any increase of sell in your outlet?

Yes No

3. Do you think that the activation element, say a Visicooler, has an impact on

sells?

Yes No

4. Do you think that the Sells Generating Asset (SGA) has an impact on sells if it

is kept outside the outlet?

Yes No

5. According to you, which activation element plays an important role in sells?

(Tick the best alternative)

a) Eating and Drinking :- i. Table Top

ii. Combo

iii. Glow Signboard

b) Grocery :- i. Mobile Hanger

ii. 3 Tier Rack

iii. Shelf Display

c) Convenience:- i. Road Stand

ii. Table Top

iii. Mobile Hanger

6. Are you given the opportunity to choose your own choice of activation

element?

Yes No

7. Is the activation element delivered in time?

Yes No

8. Is there availability of any such activation element where most of the products

of CocaCola are advertised together?

Yes No

9. Are the Features such as Quantity and Price of the various products of

Cocacola mentioned in most of the activation elements?

Yes No

10. According to you which is the best activation element? (Tick the best

alternative)

a) Table Top

b) Combo

c) Glow Signboard

d) Mobile Hanger

e) Shelf Display

f) 3 Tier Rack

g) Road Stand