project report on soft drinks-group 7
TRANSCRIPT
INFINITY BUSINESS SCHOOL(09-11)MARKETING MANAGEMENT
PROJECT REPORT-SOFT DRINKS
SUBMISSION AND DUE DATE: 8 TH Sept 09
SUBMITTED BY:Group 7NAME ROLL
NO.EMAIL ID PHONE
NUMBERINDU BHALLA
820 [email protected] 9818649288
RUCHI ANEJA 848 [email protected] 9899160832SNEHA DAS SHARMA
9810395779
LAKSHAY MEHRA
876 [email protected] 9810833551
TUSHAR KASHYAP
863 [email protected] 9899206419
NOTE: THE VISITING CARDS, PEER VALUATION FORM,
MAJOR PLAYER FORM AND ARTICLES HAVE BEEN ANNEXED
WITH THE PROJECT AT THE TIME OF SUBMISSION.
ACKNOWLEDGEMENT
MAJOR PLAYER’S CHART
a.) Introduction to Coca Cola India Limited
1-3
b.) Product Market & Target Market4-6
c.) Concepts7-11
d.) Competition analysis 12-15
e) Differentiation Strategy 16-19
f.) Product ,Positioning ,Segmentation 20-26
g.) Customer Behavior with promotion 27
CONCLUSION 28
LEARNING 29
BIBLIOGRAPHY
ARTICLES
TABLE OF CONTENTS
ACKNOWLEDGEMENT
After all, success is the epitome of hardwork, severance, undeterred
missionary, zeal, steadfast determination and most of all encouraging
guidance. So, with immense gratitude We acknowledge all those whose
guidance and encouragement served as a “beacon light” and crowned my
efforts with success.
We sincerely thank Mr. Akshay Chopra (Assistant Key account
manager) of Coca Cola India for giving us an opportunity to take up this
project We thank him for being a constant source of inspiration and mentor
and above all for his encouragement. His abundant experience in sales and
distribution was itself a great source of knowledge and information for me.
Despite his demanding schedule he bestowed every possible facility to me,
so as to carry on the project work without any encumbrance.
We would also like to thank Mr. Manoj Madhavan (General Manager)
for providing us immense knowledge about PepsiCo.
We would like to express our profound sense of gratitude to Professor
Shyam Vyas for guiding us as well as providing us the support to conduct
this project.
We got in touch with Mr. Akshay Chopra,Area Key Account
Manager,Hindustan Coca Cola Bev Pvt. Ltd. He was of great help
to us as he provided us with information regarding the company
and how the marketing department works and implements various
marketing strategies in the company.
Our learning from his interaction has been used in the preparation
of the project.
As He was unable to provide the visiting card by him at the time of
meeting, the following mail was addressed to us.
From: Akshay Chopra <[email protected]>Date: Tue, Sep 6, 2009 at 12:00 PMSubject: Re: Hi SirTo: Indu Bhalla <[email protected]>
Hello Indu,
Kindly let me know if you would like to do anything further on the project so that i can help out for the same.All the best to you and your team members.
Regards,
Akshay Chopra Area Key Account Manager Hindustan Coca Cola Beverages Pvt Ltd New Delhi 09873565583
CONFIDENTIALITY NOTICEThis message (including any attachments) contains information that may be confidential. Unless you are the intended recipient (or authorized to receive for the intended recipient), you may not read, print, retain, use, copy, distribute or disclose to anyone the message or any information contained in the message. If you have received the message in error, please advise the sender by reply e-mail, and destroy all copies of the original message (including any attachments).
We got in touch with Manoj Madhavan, General Manager, IT
Applications,Pepsi Foods Private Limited. Being part of the
company for a long time , he was of immense help to us as he
assisted us by telling us how the company has progressed all these
years with the ever changing needs and requirements of customers.
Visting Card annexed with the project submission.
We visited Shree Krishna Povision Store , Kalkaji Extn. And asked
them about the customer behaviour relating to the soft drink sector
particularly about Coke and Pepsi.The following feedback was
given by them:
He told us people tend to come to the store and try new
drinks when they see a new commercial on TV as consumer
is highly driven by Advertisements.
Younger children are much more keen to try the various
available drinks as they have a tendency to try and choose the
best among them
Customers tend to buy more when there are discounts and
various add on packs when provided by the company as they
get allured to such promotional and attractive offers.
Some people are very stuck with their tastes and they do not
want to taste other drinks so they prefer purchasing only the
drink which have they been consuming.
INTRODUCTION
HISTORY
In May, 1886, Coca Cola was invented by Doctor John Pemberton a
pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola
formula in a three legged brass kettle in his backyard. The name was a
suggestion given by John Pemberton's bookkeeper Frank Robinson.
BIRTH OF COCA COLA
Being a bookkeeper, Frank Robinson also had excellent penmanship. It was
he who first scripted "Coca Cola" into the flowing letters which has become
the famous logo of today.
COCA COLA INDIA LIMITED
Coca-Cola, the corporation nourishing the global
community with the world’s largest selling soft
drink concentrates since 1886, returned to India in
1993 after a 16 year hiatus, giving a new thumbs up
to the Indian soft drink market. In the same year, the
Company took over ownership of the nation’s top
soft-drink brand and bottling network. It’s no
wonder our brands have assumed an iconic status in the minds of the world’s
consumers.
The Company has shaken up the Indian carbonated drinks market greatly,
giving consumers the pleasure of world-class drinks to fill up theirhydration,
refreshment, and nutrition needs. It has also been instrumental in giving an
exponential growth to the country’s job listings.
Coca-Cola India is among the country’s top international investors, having
invested more than US$ 1 billion in India in the first decade, and further
pledged another US$100 million in 2003 for its operations.
It has also been instrumental in giving an exponential growth to the
country’s job listings.
With virtually all the goods and services required to produce and market
Coca-Cola being made in India, the business system of the Company
directly employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries through its
vast procurement, supply, and distribution system.
The Indian operations comprises of 50 bottling operations, 25 owned by the
Company, with another 25 being owned by franchisees.
Product Market
Product marketing deals with the first of the "4P"'s of marketing, which are
Product, Price, Place and Promotion. A Product Market is something that is
referred to when pitching a new product to the general public. The people
one is trying to make the product appeal to is the consumer market.
Product marketing in a business addresses five important strategic questions.
What products will be offered?
Who will be the target customers?
How will the products reach those?
How much the products should be priced at?
How to introduce the products?
The Coca-Cola Company offers nearly 400 brands in over 200 countries,
besides its namesake Coca-Cola beverage. It offers – Tab, Fanta, Sprite, 7
Up, Diet Coke, Diet Vanilla Coke to name some. The Non Carbonated
beverages include – Minute Maid Juices to Go, PowerAde Sports beverage,
Nestea, Fruitopia, Dasan.
Cokes TARGET MARKET in India is 12-35 year olds, and 10% of the
world is an Indian under 25. This gives them time to work and change
perceptions. Currently operations are focusing on getting current product
offerings accepted, although there has been some experimentation with
different fruit flavours under the Fanta brand.
Selecting Target Market - The target market is the group of customers on
whom the business focuses attention. The target market is where Coca Cola
focuses its marketing efforts as it feels this is where it will be most
productive and successful. The target market for Coca cola is very wide as it
satisfies the needs for many different consumers, ranging from the healthy
diet consciousness through Diet Coke to the average human through its best
selling drink regular Coke. Most Coke products satisfy all age groups as it is
proven that most people of different age groups consume the Coca Cola
product. This market is relatively large and is open to both genders, thereby
allowing greater product diversification.
Coca-Cola classifies its market segments into four broad ways –
Mass Marketing
Concentrated Marketing
Differentiated Marketing
Niche Marketing
The most apparent method used by Coca Cola is with no doubt the
differentiated marketing method as Coke satisfies a range of different
markets. Diet coke satisfy’s the weight consciousness, Regular Coke, Sprite,
Fanta the average human, coffee, iced tea etc. Each group of beverages
satisfy a particular group of people but majority the average human
Hence we can see that Coke has a particular market segment that it caters to.
Its product market is very vast as it offers many different products that fulfil
the needs of different strata’s of customers. And its target market varies
according to its products and differs across geographical regions.
CONCEPTS
Market Analysis :
The market analysis investigates both the internal and external business
environment. Both with their respective influences will be decisive traits in
relation to Coke’s success and survival in the soft drink industry.
Internal Business Environment
The internal business environment and its influence is that which is to some
extent within the business’s control. Coke must conduct continual appraisals
of the business’s operations and readily act upon any factors, which cause
inefficiencies in any phase of the production and consumer process.
External Business Environment
The External business environment and its influences are usually powerful
forces that can affect a whole industry and. Fluctuations in the economy,
changing customer attitudes and values, and demographic patterns heavily
influence the success of Coca Cola’s products on the market and the
reception they receive from the consumers.
SWOT Analysis:
SWOT analysis is a technique much used in many general management as
well as marketing scenarios. SWOT consists of examining the current
activities of the organisation.
Strengths –
Extremely recognizable branding - The image is displayed on T-shirts,
hats, and collectible memorabilia.
Bottling system - allows them to conduct business on a global scale
while at the same time maintain a local approach as the bottling
companies are locally owned and operated by independent business
people who are authorized to sell products of the Coca-Cola
Company.
Weaknesses –
Declines in unit case volumes in Indonesia and Thailand due to
reduced consumer purchasing power.
Issue for health care – bad for teeth and too much sugar is not good
for health.
Opportunities -
Brand recognition is the significant factor affecting Coke's competitive
position.
Packaging changes have also affected sales and industry positioning;
Coca-Cola's bottling system also allows the company to take advantage
of infinite growth opportunities around the world. This strategy gives
Coke the opportunity to service a large geographic, diverse area.
Threats –
New viable competitors and substitutes. Possible substitutes that
continuously put pressure on both Pepsi and Coke include tea, coffee,
juices, milk, and hot chocolate.
The changing health-consciousness of the market could have a serious
affect.
Consumer buying power also represents a key threat in the industry
Marketing Objectives
The objective is the starting point of the marketing plan. The purposes of
objectives include:
1. To enable a company to control its marketing plan.
2. To help to motivate individuals and teams to reach a common goal.
3. To provide an agreed, consistent focus for all functions of an
organization.
Selecting Target Market
The target market is the group of customers on whom the business focuses
attention. The target market is where Coca Cola focuses its marketing efforts
as it feels this is where it will be most productive and successful.
The Marketing Mix
The marketing mix is probably the most crucial stage of the marketing
planning process. This is where the marketing tactics for each product are
determined.
Product: The word product means much more than just physical
goods. In marketing, product also refers to services. Consumers will
buy the coke product because of the high standards and high quality of
the Coca Cola products. offer a help line and complaint phone service
for customers who are not satisfied with the product or wish to give
feedback on the products.
Price: Price is a very important part of the marketing mix as it can
effect both the supply and demand for Coca Cola. Coca Cola has used
Penetration Pricing as a way of grabbing a foothold in the market and
won a market share. Once customer loyalty is established as seen with
Coca Cola it is then able to slowly raise the price of its product.
Promotion: Promotion is the p of the marketing mix designed to
inform the marketplace about who you are, how good your product is
and where they can buy it. Promotion is also used to persuade the
customers to try a new product, or buy more of an old product. Coca
Cola has used advertising as the main form of promotion for extensive
range of products. Coca Cola also utilizes below the line promotions
such as contests, coupons, and free samples.
Place: It is apparent from the popularity of the Coca Cola’s product
on the market that the business in the past used the method of
intensive distribution as the product is available at every possible
outlet. From supermarkets to service stations to your local corner
shop, anywhere you go you will find the Coca Cola products.
Other factors
Positioning - Positioning is the process of creating, the image the product
holds in the mind of consumers, relative to competing products. Coca Cola
has been positioned based on the process of positioning by direct
comparison and have positioned their products to benefit their target market.
Branding - The popularity of the brand is often the deciding factor. Over the
time Coca Cola has spent millions of dollars developing and promoting their
brand name, resulting in worldwide recognition. Coca Cola utilizes the
Individual brand strategy as Coca Cola’s major products are given their own
brand names e.g. Fanta, Sprite, Coca Cola etc although they may be
presented as different lines they operate under the name of Coca Cola.
Packaging - Packaging protects the product during transportation, while it
sits in the shelf and during use by consumers, it promotes the product and
distinguishes it from the competition. Coca-Cola has benefited from
packaging the product with incentives and endorsements on the labelling as
a promotional strategy to increase it’s volume of sales and revenue.
Implementing, monitoring and controlling – This consists of Financial
forecasting, implementing, monitoring and controlling.
COMPETITION ANALYSIS
Major competitor : PEPSI
4.4
4.6
4.8
5
5.2
5.4
5.6
5.8
6
Pepsi Coca-Cola
No of Pepsi & Coke brands available in Average
No of Types
INTERPRETATION:
In my survey of 300 retail outlets in 3 areas, I found 5 brands of Pepsi out of
its 10 brands and 6 Brands of Coke is available out of its 10 Brands on
average. So the brand availability of Coke is more when compared to Pepsi
Pepsi – Price
Pepsi again decides i t pr ice on the bas is of compet i t ion . The
bes t th ink about the company Pepsi i s tha t i t i s very f lexib le
and i t can come down wi th the pr ice very quickly . The
company is renowned to br ing the pr ice down even up to ha l f
i f needed.
But th is r i sk taking a t t i tude has a lso earned Pepsi losses .
Though lower ing the pr ice would a t t rac t the cus tomers but i t
would not he lp them cover up the cos t incurred in product ion
hence caus ing them losses .
This was the s i tua t ion ear l ie r but now Pepsi i s a fu l l - f ledged
and growing company. I t has covered a l l i t s losses and i s
now growing a t a rapid ra te .
Promotion
Promot ion i s one of the four aspects of market ing .
Promot ion comprises four subcategor ies :
1 . Adver t i s ing
2 . Personal se l l ing
3 . Sales promot ion
4 . Publ ic i ty and publ ic re la t ions
The speci f ica t ion of these four var iables crea tes a
promot ional mix or promot ional p lan . A promot ional mix
speci f ies how much a t tent ion to pay to each of the four
subcategor ies , and how much money to budget for each. A
promot ional p lan can have a wide range of objec t ives ,
inc luding: sa les increases , new product acceptance , c rea t ion
of brand equi ty , pos i t ioning, compet i t ive re ta l ia t ions , or
c rea t ion of a corpora te image.
Both the companies Pepsi and coke are famous for the i r
promot ions . The r iva l ry was f i rs t s ta r ted when Pepsi s ta r ted
wi th i t s b l ind tas te tes ts known as the Pepsi Chal lenge . The
chal lenge i s des igned to be a d i rec t response to cr i t ics who
a l lege tha t Coca-Cola and Pepsi -Cola are ident ica l dr inks ,
wi th no meaningful d i f ferences . The chal lenge takes the
form of a tas te tes t . At mal ls , shopping centers and other
publ ic loca t ions , a Peps i representa t ive se ts up a table wi th
two blank cups , one conta in ing Pepsi and one wi th Coke.
Shoppers are encouraged to tas te both colas , and then se lec t
which dr ink they prefer . Then the representa t ive reveals the
two bot t les so the tas ter can see whether they prefer red Coke
or Peps i . I f Peps i i s revealed , the shopper i s g iven a smal l
pr ize . The impl ica t ion i s tha t Peps i tas tes be t te r than Coke,
and thus consumers should purchase Pepsi .
In b l ind tas te tes ts , more consumers prefer the tas te of
Peps i to tha t of Coca-Cola . Because Coke was the h is tor ica l
leader , more people expected tha t they 'd prefer and se lec t
Coke. Thei r surpr ise a t p icking Pepsi in the b l ind tas te tes t
(products were served in unmarked cups) he lped change the i r
minds about which product they prefer . Captur ing th is on
f i lm, Pepsi turned th is in to a memorable TV campaign tha t
las ted many years .
Also ad-campaigns are put up on the te levis ion by both the
p layers . The fo l lowing s ta t i s t ic jus t te l l s of much of share of
ads on TV are captured by these p layers .
FIRM’S DIFFERENTIATION STRATEGY
Firms differentiation strategy is by using a different tagline. Some of them are
mentioned below:
Tagline timeline
1898 Brad's Drink
1903 Exhilarating, Invigorating, Aids Digestion
1906 Original Pure Food Drink
1908 Delicious and Healthful
1915 For All Thirsts - Pepsi:Cola
1919 Pepsi:Cola - It makes you Scintillate
1920 Drink Pepsi:Cola - It Will Satisfy You
1928 Peps You Up!
1933 It's the Best Cola Drink
1943 Bigger Drink, Better Taste
1958 Be Sociable, Have a Pepsi
1963 Come Alive! You're in the Pepsi Generation1981 Pepsi's Got Your
Taste for Life
1979 Catch That Pepsi Spirit
1983 Pepsi Now! 1984 The Choice of a New Generation
1992 Gotta Have It
1996 Nothing Official about it
1998 Yahi hai right choice baby, Aha!
2008: "Yeh hai Youngistaan Meri Jaan!" Hindi - meaning "This is the
Young era my dear" (India and Pakistan)
Brand Differentiation Percentile
Pepsi and coke both are at level when it comes to product Differentiation;
both brands try to differentiate by doing various activities. Pepsi from 2008
has been using the tag line “Yeh hai Youngistaan Meri Jaan!".here they
targeted the young generation by taking out ads that directly or indirectly
relate to the youth, after a few months they also took out a (My can) that was
majorly targeted for the youth. Coke on the other hand uses the complete
opposite strategy after acquiring thumps up the brand has somewhat
followed the thumps up Macho male form of advertisements and has then
decided to be in the middle, the brand made shore that it does not let the
customers get a stereotype about the brand and thus the company uses actors
like hritik roshan and aamir khan and makes different ads every time.
Both these giants have been trying to create separate identities for
themselves as their products are very similar to each other.
Peps i again has spread wor ldwide . Peps i when enter ing a
new market does not go in a lone but i t looks for par tners and
mergers . Ti l l now Pepsi has col labora ted wi th companies
l ike Quaker Oats , Fr i to- lays , Lipton, Starbucks , e tc . Peps i
l ike Coke has spread a l l over the wor ld . I t i s because of th is
wor ldwide spread tha t now i t i s coming up wi th
Adver t i sements which can be broadcas ted in the d i f ferent
na t ions in the wor ld . The recent example wi th would be the
Pepsi adver t i sements having Ranbir kapoor and john
abraham as i t s brand ambassadors .
PRODUCT, POSITIONING, SEGMENTATION
Advertising professionals realize that the heart of any campaign is the
productand the position it holds in people's minds. Products and their brand
names are newsmakers themselves. Wendy's hamburgers, Apple computers,
and California raisins (particularly when they sing and dance) are objects of
our attention and interest.
Understanding the complexities of a brand identity and its position is no
easy task. A good case in point is the activities of Coca-Cola in the last few
years.
After a $4 million research project, Coca-Cola brought out a new Coke
formula in May 1985 with the intention of retiring the old formula. To
everyone's surprise, the intense feelings of American consumers toward old
Coke were such that the old formula had to be kept on the market, renamed
Coke Classic.
WHAT IS POSITIONING?
Positioning begins with a product; the concept really is about positioning
that product in the minds of the consumer. Positioning is a powerful tool that
allows us to create an image; consumers are inundated with advertisements,
with advertisers spending hundreds of dollars annually per consumer in the
U.S. The consumer's mind is geared to the largest volume of advertising and
accepts only what is consistent with prior knowledge and experience.
The best approach to getting into someone's mind is to be first. Positioning is
a perceptual location. It is where your product or service fits into the
marketplace.
It is very easy for the consumer to remember who is first, and much more
difficult to remember who is second, even if the second product offers a
better value, and is a better product. Simply, positioning is how your target
market defines you in relation to your competitors.
There are some key elements of positioning and they are:
Pricing. Is your product a premium item, in the middle, or cheap, cheap,
cheap?
Quality. Is your product well produced? What controls are in place to assure
consistency? Do you offer the consumer guarantees, warranties, and return
policies?
Service. Do you offer customer service and support? Is your product
customized and personalized?
Distribution. How will the consumer purchase your product? The
distribution channel is a very important part of positioning.
Packaging. Packaging is crucial; it makes a strong statement for your
product.
So make sure it is delivering the message you intend it to. This were you
leverage what you do best, and what is unique about your product or service.
Identify your strongest strength and use it to position your product or
service.
Positioning is what the consumer believes and not what the provider wants
the consumer to believe.
Positioning of coca cola
Beverages suited to different ages, stages, lifestyles and occasions.
This includes soft drinks, diet drinks, juices and juice drinks, waters, energy
drinks, sports drinks and cordials.
We are committed to helping our customers select the product that is best
suited to their needs through the provision of detailed product information
supported by general advice on healthy eating, drinking and lifestyles.
Children and the role of our beverages
We respect and support the primary role that parents play in decisions
affecting the lives of young children, including choices about diet and
lifestyle.
Beverage choice, like food selection, is a role for parents and we assist them
in this through the provision of nutrition information and by making
available a wide range of products suitable for all ages, stages and occasions.
CUSTOM ER BEHAVIOR WITH PROMOTION
LEARNING
Yes this exercise helped us in learning the marketing strategies used by
PepsiCo and Cocoa Cola. We came to know that advertising and promotion
plays a very crucial role in both the companies because a lot of competition
exists between them. Both the companies are environment friendly and have
emphasis towards corporate social responsibility.
The group’s limitation was that we didn’t analyze the coke’s performance
across the world and we didn’t compare Coca Cola India with Coca Cola
International.
CONCLUSION
The firms marketing efforts of advertising, sales promotion, collaboration
with various fast food joints, offering discounts to retailers and customers ,
different packaging have led to increase in sales and profit of the
company .The company today knows that customer are aware of everything
available in the market so by introducing new products in the market the
company is increasing the trialibility towards their product.
Our group believes that the quality and effectiveness of Coca Cola’s
marketing effort are to a great extent beneficial to the company . They know
what are the consumer needs. Coca Cola uses various film stars in their
advertisement so that they endorses their product. They provide various ad
on packages at the time of festivals. The company even reduces the price of
coke according to the season. Coke has spread all over and is promoting
itself in rural areas.
Our group believes that the firm is able to satisfy its customers but there are
few recommendations:
They should emphasis on the preferences of old people.
Coca Cola should try to emphasis more on providing their infrastructure in
the market so to facilitate more customer.
Bibliography
http://www.managementparadise.com/forums/archive/index.php/t-4403.html
www.coca-colaindia.com
www.pepsiindia.co.in
