Case Study On N.

R Narayana Murthy as a Strategic Leader Subject

Strategic Management

Batch
2011-13

Submitted To
Prof. Gupta Sir

Prepared By
Chintan Mansharamani Imran Memon Ankit Chauhan Roma Patel

INSTITUTE OF TECHNOLOGY AND MANAGEMENT UNIVERSE, VADODARA

INTRODUCTION Marketing is not a process of selling our goods to customers. It is an art of making them buy our goods again and again. Marketing is a social and management process by which individuals and groups obtain what they want and need through creating offering, exchange and transaction products of value with them. Marketing Management is a process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organization goals. Thus, marketing starts with identifying the target customers and ends with satisfied customers. Management of all the activities between these customers is the responsibility of the marketing managers. Consumer Markets: Individual and households for their personal consumption can be defined as a consumer market. Beverage industry is generally considered to the typical consumer goods. Beverage industry is one of the most profitable industry in the market. Beverage industries at present are facing boom period in India.

Beverage industry is generally classified into: 1. Alcoholic drinks. 2. Non-alcoholic drinks. Non-alcoholic beverages again divided into: 1. Carbonated Soft Drinks (C.S.D) 2. Fruit Juice

The soft drinks again divided into: 1. Cola based 2. Non-Cola based The Non-Cola based segment has orange, clear lemon, cloudy lemon and soda. Fruit juices include watermelon, mango, apple and pineapple. The cola segments, which consider to be giving some type of fuzziness and satisfaction, is fast growing in India. This is the reason why soft drink marketers are fighting tooth and nail to establish their leadership in the market.

CONSUMER PREFERENCE The marketing concept is built on the premise that marketers first identify consumer needs and then develop products and services to satisfy those needs. Consumer researcher offers asset of diverse methods to identify such needs. Consumer research is also used to better understand consumption behavior. It is used to identify and locate appropriate target markets and to learn their media habits .it is used to identify both felt and unfelt needs to learn how consumer preference products and brand and stores, whats their attitude before and after promotional components and how and why they make their consumer decisions. Many of these applications of consumer research are managerial in perspective. They are designed to help a market make specific marketing decisions concerning product, price, promotion and distribution. Consumer research provides basis for the development of new product and service concepts to meet targeted consumer needs. It also enables marketer to build consumer meaning into the product or service by discovering which attributes are most important to the target market and integrating them into the product or service design.

HOW THE CONSUMER HELPS MANUFACTURER The consumer helps the manufacturer by formulating the policy of manufacturers according to the demand and assists them in securing the markets of their goods. The consumer also reveals the manufacturers from the necessity of having sales organization of their own. The manufacturers are not put to that task of collection and securing orders and the numbers of accounts they have to open are smaller than when dealing with the consumer. The consumers are in a position to advice the manufacturers as to the changes or alternations, which should be introduced in their products. While manufacturing soft drinks the company should maintain both quality and quantity occupies a very important stabilized position. The company can assess the public demand and see that marketable goods are manufactured thus protecting the manufacturer from wasteful and indiscriminate production as well as the consumer against goods which are neither satisfactory nor good value. CONSUMER RELATIONS: The consumer decision making with a brief consideration of relations marketing firms have established relationship marketing programs to faster usage loyalty and a commitment to their companys products and services . In this way relationship marketing is aimed at creating strong relationships with a core group

of consumers. The emphasis is on developing long-term bonds with them and by giving them some kind of personal connections to the business. Ultimately it is an advantage to develop long-term relationship with existing consumers because it is easier and less expensive to make an additional sale to an existing consumer than to make a new sale to a new consumer. However, the effort involved for the firm in developing and maintaining a consumers relationship must be weighted against the expected long-term benefits. Marketers much determine the life time value of a consumers to ensure that the cost of obtaining servicing and communicating with the consumers do not exceed the potential profits. MARKET SEGMENTATION DEMOGRAPHIC: Soft drinks are mostly consumed in the urban market. However the market can be segmented on the basis of several demographic variables like age of consumer, Geographic location of the market and place of consumption {indoor or outdoor}. Soft drink concentrates like Rasna and packet fruit drinks are targeted towards younger age groups and outdoor consumption. CLIMATE: Places with high humidity and temperature endure low body fluid. Under such climatic conditions consumer uses soft drinks to replenish the lost body

fluids. Hence there is a potential soft drink market in such places. The category cop is further refinement of other geographic segment. MEDICINAL: Certain flavors like plain soda are perceived to aid indigestion. Fruit juices are more in demand on medicinal and health grounds. USER STATUS: Most consumers perceived soft drinks as athirst quencher. A small segment can be defined based on the purpose behind the consumption. NORMAL: The group of consumers who use soft drinks as a thirst-quenching medium. Select: The group of consumers who use soft drinks as a diluting medium for alcoholic beverages. This includes soft drink being used as appetizers. Elite: The group of consumers who prefer soft drinks to water. They also offer soft drinks to guests. Social: The group comprises individuals and institutions that serve soft drinks during some functions. This segment has emerged as the most rapidly growing market.

PROFILE OF COCA-COLA COMPANY The Coca-Cola Company, which is the most recognized trademark in the world's largest manufacturer and the distributor of Soft drink syrups and concentrates. The mission of the company is to increase shareholders value over time. One of the foundations of this mission in the business with people has a strong commitment to the company values and culture, and providing an opportunity controlled equipment, to meet the business goals and objectives. The company has responsibility to ensure compliance with the frame of policies and procedures, and protect the company's assets and resources, while limiting business risks. BIRTH OF REFRESHING IDEA: John Stitch Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta. It was May of 1886 when the pharmacist caramel-colored syrup. In a three - legged brass kettle in his backyard. He first "distributed the new product by carrying Coca-Cola in jug down the street to Jacobss pharmacy. Four five Cents, consumers could enjoy in a glass of Coca-Cola at the soda fountain. Carbonated water has teamed with the new syrup, producing a drink that was proclaimed "delicious and refreshing". Dr Pemberton's partner and book keeper, Frank M. Robinson, suggested the name and penned "Coca-Cola "in the unique following script that is stil11amous

"world wide today. Mr. Robinson considered that "the Two C's would look well in advertising. 1886, Atlanta entrepreneur Asia G. Candler had acquired complete ownership of the Coca-Cola business. With in four years, his merchandising flair helped expand consumption of Coca-Cola to every state and territory. In 1919, the Coca-Cola Company was sold to a group of investors for $25' million. Robert ' W. Woodruff became the president of the Coca-Cola Company in 1993. And is more than 6 decades of leadership took the business to unrivaled heights of commercial sources, making Coca-Cola and institution the world over.

COCA-COLA FIRST BOTTLED: Coca-Cola began as a fountain product. But Candy Merchant Joseph A.Beindenahm of Mississippi was looking for a way to serve this refreshing beverage at picnics. He began offering bottled Coca-Cola, using syrup shifted from Atlanta during an especially busy summer in 1984 In 1899, large-scale bottling became possible when Asia Candela granted "'exclusive bottling right to Joseph. Whitehead and Benjamin fathoms Of Chattanooga, Tennessee. The Contract marked the begging of the Coca-Cola Company's unique independent bottling system that remains the foundation of the company soft drink operations. Back then, soda bottles are all very similar. And

Coca-Cola had many operations. Back then, soda bottles are all very similar. And coca-cola had many imitators, which consumers would be unable to identify until they took sip. The answer was to create a distinct bottle for Coca-Cola bottle with a counter - ape now known around the world in 1915.

MISSION OF COCA-COLA IN INDIA

Create consumer products, services and communications, customer's services and bottling system strategies, processes and tools in order to create competitive advantage and deliver superior value to:

Consumers, as a superior beverage experience. Customers, as an opportunity to grow profits through the use of finished drinks. Bottle's, as an opportunity to grow profits and volumes. The Coca-Cola Company, as a trade mark enhancement and positive economic value added. Suppliers, as an opportunity to make reasonable profits while creating real value-addition, in an environment of system - wide team work, flexible business systems and continuous improvement. Coca-Cola India Associates, as superior career opportunity.

 The Indian society, in the form of a contribution to economic and social development.

VISION OF COCA-COLA IN INDIA Provide exceptional strategic leadership in the Coca-Cola India systems, resulting in consumer and customer preference and loyally, through Coca -Cola's commitment to them, and in a highly profitable Coca-Cola corporate branded beverages system.

OBJECTIVES OF THE STUDY

To measure consumer awareness of coca-cola soft drinks. To find out the consumption level of coco-cola soft drinks. To find out the purpose of consumption. To find out impact of alternative brand. To identify the consumers preferences and the influencing factors in purchase of coca-cola soft drinks.

RESEARCH METHODOLOGY INTRODUCTION The main objective of the study is to find out the overall preferences of consumer towards purchases of coca-cola soft drinks in Hyderabad. The method used for present study was survey method using structured and pre designed questionnaires. In this method the information is gathered mainly through personal interviews. The survey consists of gathering data by interviewing a limited number of respondents. The sample is selected from a large group on convenience basis. The uses of survey method are: 1. To gather facts from respondents. 2. To report the opinion of the respondents. 3. To probe interpretation that gives various matters.

METHODOLOGY RESEARCH DESIGN A research design is the specification of methods and procedures for acquiring the information needed. It is the over all operational pattern or frame work to the project that stipulates what information is to be collected from which source and by what procedures. Research design was aimed at relevant information. It was conceptual structured with in which research was conducted.

THE MAIN SOURCES OF DATA There are two types of data primary data This consists of original information, which is collected first hand. It is obtained direct with consumers concerned through market research. It can be collected in following ways o Observation o Focus group o Survey secondary data

Researchers usually start by gathering secondary data through the companys internal data base, which provides a good starting point. However, the company can also tap a wide assortment of external information sources ranging from company public and libraries to government business and publications. Sample: A part of population, which is provided by some process on other. Usually by deliberated selection with the object of investigation the properties of the parent population set. Non-probability sampling method is in deterministic method where the sample size is numerous and cant be determined. So for our convenience we take convenience-sampling method where all the population in sample is given equal priority. Sampling procedure: It is a procedure required from defining a population to the actual selection of the sample. Sampling method: The Sampling technique adopter by the researcher for the study is simple random sampling. Sampling unit: A sampling unit is the basic unit containing the elements of the target population.

Sample size: The sample size for the study is 200 consumers. Area of study: Area of the study for the researcher work is Gujarat. LIMITATIONS OF THE STUDY

1. It is difficult to make a survey over entire India. So that researcher has confined to a particular area. 2. There is a chance for bias in the information given by the respondents. 3. The data and result may not be accurate for the total universe, due to the size of samples is small. 4. Most of the consumers refused to fill the complete questionnaire as they were busy in their work. 5. The duration of the study was restricted to time limit of weeks.

AGE GROUP OF CONSUMERS TABLE-1 AGE NO.OF RESPONDENTS 5-10 11-20 21-30 31-40 41-50 50 ABOVE 30 50 50 40 20 10 15 25 25 20 10 5 PERCENTAGE

CHART-1

60 50 510 40 30 20 10 0 510 1120 21-30 31-40 41-50 50 ABOVE PERCENTAGE

AGE GROUP

1120 21-30 31-40 41-50 50 ABOVE

Inference: From the above table it is clear that most of the respondents who consume soft drinks come under age group of 5-10 years i.e. 15% of the total sample, 25% are in the age group between 11-30 years, 20% are in the age group between 31-40

years, 10% are in the age group of 41-50 years and 5% are in the age group above 50 years. The above table 1 shows that 25% the consumers belong to the age group between 11-30 years highly consume soft drinks. SEX-WISE CONSUMPTION TABLE-2 SEX NO.OF RESPONDENTS MALE FEMALE TOTAL 118 82 200 59 41 100 PERCENTAGE

CHART-2

80 70 60 50 40 30 20 10 0 MALE FEMALE
MALE FEMALE

Inference: From the above table it is clear that 59% of the respondents who consume soft drinks are male and 41% of the respondents are female.

OCCUPATION OF CONSUMERS TABLE-3 OCCUPATION NO.OF RESPONDENTS STUDENTS EMPLOYEES BUSINESS OTHERS TOTAL 74 62 44 20 200 37 31 22 10 100 PERCENTAGE

CHART-3
40

30
Students Employees Business Others

20

10

0 Students Employees Business Others

Inference: From the above table, 37% of the consumers belong to the occupation of students, while 31% are employees, 22% are business people and 10% of them others including housewives, doctors, labours etc.

AWARENESS OF SOFT DRINK TABLE-4 AWARENESS NO.OF RESPONDENTS YES NO TOTAL 184 16 200 92 8 200 PERCENTAGE

CHART- 4

Inference: From the above table it is clear that 92% of the respondents are aware of soft drinks and remaining 8% are not aware of soft drinks.

CONSUMPTION OF SOFT DRINK TABLE-5 BRAND THUMS UP SPRITE COCA-COLA MAAZA LIMCA FANTA TOTAL NO. RESPONDENTS 48 36 28 62 12 14 200 OF PERCENTAGE 24 18 14 31 6 7 100

CHART-5

Inference: From the above table it is clear that 24% of the people consume Thumps up, 18% of people consume Sprite, 14% of people consume Coca -cola, 31% of the people consume Maaza, 6% of the people consume Limca,7% of the people consume Fanta. It depicts that 31% of the consumers are highly responded for Maaza and 24% followed by Thums up.

PURPOSE OF HAVING SOFT DRINKS TABLE-6 Purpose TASTE THIRST STATUS FRESHNESS TOTAL No. of respondents 67 78 35 20 200 Percentage 33.5 39 17.5 10 100

CHART-6

50 40 30 20 10 0 THIRST TASTE STATUS FRESHNESS TASTE THIRST STATUS FRESHNESS

PURPOSE

Inference: From the above table it is clear that 33.5% of the consumers take soft drinks as taste quencher, 39.5% of the consumers take soft drinks for thirst, and 17.5% of the consumers take soft drinks for status purpose. It depicts that the consumers highly responded for thirst 39.5% and followed by taste 33.5% and 17.5% people take for status purpose.

ALTERNATIVE BRAND TABLE-7 BRAND THUMS UP SPRITE COCA-COLA NO.OF RESPONDENTS 38 35 32 PERCENTAGE 19 17.5 16

MAAZA LIMCA FANTA TOTAL CHART-7

48 22 25 200

24 11 12.5 100

Inference: From the above table it, is clear that 19% of the consumers take alternative brand of Thums Up, 17.5% of the consumers take alternative brand of Sprite, 16% of the consumers take alternative brand of Coca-Cola, 24% of the consumers take alternative brand of Maaza, 11% of the consumers take alternative brand of Limca, 12.5% of the consumers take alternative brand of Fanta. It depicts that 24% of the consumers prefer Maaza as alternate brand followed by 19% prefer Thums up, 17.5% of the consumers prefer Sprite and 16% of the

consumers prefer Coca- cola as alternate brand.

PREFERENCE FOR QUANTITY TABLE-8 QUANTITY 200ml 300ml 500ml 1Ltr 11/2 Ltr TOTAL CHART-8 NO.OF RESPONDENTS 78 46 26 25 25 200 PREFERNCE 39 23 13 12.5 12.5 100

Inference: From the above table-7 it is clear that 39% of the consumers responded for 200ml, 23% of the consumers responded for 300ml, 13% of the consumers responded for 500ml and 12.5% of the consumers responded for 1ltr & 11/2 ltr bottles.

It depicts that 39% of the consumers responded for 200 ml, 23% of the consumers responded for 300 ml,13% of the consumers responded for 500 ml and 12.5% of the consumers responded for 1ltr & 11/2 ltr bottles.

FACTORS INFLUENCING TO PREFER BRAND TABLE-9 FACTORS TASTE BRAND IMAGE ADVERTISEMENT OFFERS & OTHERS TOTAL CHART-9 NO.OF RESPONDENTS 87 34 56 23 200 PERCENTAGE 43.5 17 28 11.5 100

Inference: From the above table-8 it is clear that 43.5% of the consumers are influenced by Taste, 17% of the cosumers are influenced by Brand Image, 28% of the cosumers are influenced by Advertisement, Offers and Others influences 11.5% of the respondents.

It depicts that 43.5% of the consumers highly responded for taste and 28% of the consumers responded for advertisement, 17% of the consumers responded for Brand Image and 11.5% of the consumers responded for Offers & Others.

CONSUMERS SATISFACTION ON AVAILABILITY TABLE- 10 OPINIO N YES NO TOTAL CHART- 10

100 90 80 70 60 50 40 30 20 10 0 Yes No Yes No

NO.OF RESPONDENTS 188 12 200

PERCENTAG E 94 6 100

Inference: From the above table, 94% of the consumers are satisfied with the availability of coca-cola products in the outlets while 6% of the consumers are not satisfied.

OPINION TOWARDSTHE ADVERTISEMENT OF COCA-COLA TABLE-11 OPINION HIGHLY ATTRACTIVE ATTRACTIVE SOME EXTENT NOT ATTRACTIVE TOTAL CHART-11 NO.OF RESPONDENTS 46 64 52 38 200 PERCENTAGE 23 32 26 19 100

Inference: From the above table-10 it is clear that 23% of the consumers opined coca-cola advertisement as highly attractive, followed by 32% of the consumers opined it as attractive, 26% of the consumers to some extent and 19% of consumers not attractive

towards the coca-cola advertisement. It depicts that the 32% of the consumers responded for attractive and 26% of the consumers responded some extent and 23% of the consumers said highly attractive and 19% of the consumers are not attractive towards coca-cola advertisement. SOURCES OF MEDIA TABLE-12 SOURCES OF MEDIA TELEVISION NEWS PAPERS HORDINGS WALL PAINTINGS TOTAL CHART-12 NO.OF RESPONDENTS 106 44 34 16 200 PERCENTAGE 53 22 17 8 100

Inference: From the above table-11 it is clear that 53% of the consumers got awareness through T.V, 22% through News Papers, 17% through Hoardings and the remaining 8% through Wall papers.

SUGGESTIONS AND COMPLAINTS BY THE CONSUMERS

TABLE-13 Suggestion & complaints Demand for mineral water Control the price Non-availability of products in remote areas Giving advertisement towards rural market Launch 200ml Maaza TOTAL No. of consumers 42 60 22 12 64 200 percentage 21 30 11 6 32 100

CHART-13

35 30 25
percentage
Demand for mineral water

Control the price

20 15 10 5 0
suggestions & complaints

Non-availability of products in remote areas Giving advertisement towards rural market

Launch 200ml Maaza

Inference:

From the above table, 32% of the consumers suggested to launch 200ml Maaza, 30% of the consumers suggested to control the price, 21% of the consumers demanded for mineral water, 11% of the consumers complained about the non-availability of coca-cola products in remote areas and 6% of the consumers suggested to give advertisements towards rural market.

Findings of the study

Out of 200 respondents, 15% of the consumers belong to the age group between 5-10 years while 25% between 11-30, 20% between 31-40 years and 5% between 41-50 years and 5 % are above 50 years. From the analysis we conclude that teenagers and adults are potential consumers for Coca-Cola products. Out of 200 respondents 59% of respondents are male and 41% are female. Out of 200 respondents 92% of respondents are aware of soft drinks and 8% are not aware of soft drinks. Out of 200 respondents 37% of the consumers belong to the occupation of students while 31% are employees, 22% are business people and 10% of them are others including housewives, doctors, labours etc. From the analysis we conclude that students occupy a larger proportion among the consumers of the Coca-Cola. With regard to the consumption of soft drinks, out of 200 respondents 31% of the consumers prefer Maaza, 24% prefer Thumsup, 18% prefer consumers prefer Coca-Cola, 7% of the consumers prefer Fanta and 6% of the consumers prefer Limca. The consumers prefer Maaza because of its Mango flavor, quality and tastiness of the product.

 Out of 200 respondents, 39% of the consumers take soft drinks for thrist, 33.5% of the consumers take soft drinks as taste quencher, 17.5% of the consumers for status purpose and 10.5% of the consumers take soft drinks for freshness. Most of the consumers take soft drinks for thrist. Research reveals that among the Coca-Cola soft drinks Maaza got the most alternative brand followed by Thumsup, Sprite, Fanta, Limca. Out of 200 respondents, 39% of the consumers prefer 200ml, 23% prefer 300ml , 13% prefer 500ml, 12.5% prefer 1ltr & 1 ltr. Thus 200ml is the most preferred quantity among the different quantities of coca-cola products. Because, the consumers feel that 200ml is of less cost and their satisfactory level is that of 300ml. Out of 200 respondents, 98% of the consumers have come across the advertisement of cocacola products while only 2% say that they didnt come across any such kind. This itself speaks about the effectiveness of the companies advertisements. Almost all the consumers are aware of the

advertisement of coca-cola products. Out of 200 respondents, 53% of the consumers came to know about the coca-cola products only through T.V, 22 % of the consumers came to know about the coca-cola products through news papers, 17% of the consumers came to know hoardings and 8% of the consumers through wall paintings.

 Out of 200 respondents, 94% of the consumers are satisfied with the availability of coca-cola products in all outlets while 6% of the consumers are not satisfied because 8% of the consumers are from remote areas. Out of 200 respondents, 67% of the consumers said that ads of coca-cola products are attractive, 26% of the consumers said that it is attractive to some extent, 23% of the consumers said that it is highly attractive and 19% of the consumers said that it is not attractive. The consumers suggested to launch 200ml SKU for Maaza and for mineral water in pouches. The consumers complained that some retailers are selling 200ml SKU for Rs.8 ( Rs.7 + Re.1 as extra cooling charge) and in cinema theaters 300ml SKU is being sold selling for Rs.12. This has a greater impact on consumers especially the common man. The consumers are lagging with availability of coca-cola products in rural areas. It can be concluded that the coca-cola products are at high position in the market compared to that of competitors, providing the wide range of products to its wide consumer market, thus maintaining its brand image and market share.

Suggestions The following suggestions are made to the company increase Companys brand image and market share.

In summer season there is more demand for mineral water. The company can increase its market for sales of water by introducing 200ml and 300ml pouches, so as to get more number of consumers into its hold along with kinley water pet bottles. The company has to take necessary steps against the practice of selling at higher price by some retailers and in theaters, keeping the common man in view. The company can introduce soft drinks in various fruit flavors. The company take necessary actions for making its products available in remote areas too. The company should concentrate more on radio and local cable network media, so the product does not lose the rural and urban market on account of competitors aggressive campaign and market gimmicks. The

advertisements of the company should emphasize that the products are not harmful to health. Sign boards, posters and wall paintings of coca-cola

brands should be increased. Company should sponsor the social and cultural activities in order to build companys image. The company has to emphasize on the brands Fanta and Limca to increase its consumption rate. The company should give more preference to hygienic factors and overcome rusty crowns and faded labeling. The company should introduce 200ml SKU for Maaza.

ANNEXURE QUESTIONNAIRE

1. 2.

Name: Age: a)5-10 b)11-20 c)21-30 d)31-40 e)41-50 f)50 Above Male/Female

3. 4.

Sex: Occupation:

a) Student b) Business c) Employee d) House Wife e) Others 5. 6. Are You Aware Of Soft Drinks: Yes/No

Which is your favorite brand in COCA-COLA: a)Thums Up b)Sprite c)Coca-Cola d)Maaza e)Limca f)Fanta.

7.

Suppose your favorite brand is not available in the shop .What is your alternative choice: a) Thums up b)Sprite c) Coca cola d) Maaza

8.

Purpose of drinking soft drinks: a) Taste b) Thirst c) Freshness d) Status.

9.

How often do you consume soft drinks: a) Occasionally b) Regularly c) Rarely

10.

Please rank the factors which influence to prefer: a) Taste b) Advertisement c) Brand image d) Offers & others

11.

Which pack size you generally prefer: a)200ml b)300ml c)500ml d)1 lt

12. 13. 14.

Are you satisfied with availability of Coca-Cola brands: Have you come across the advertisement of Coca-Cola: Source of awareness is: a)T.V b)News Paper c)Wall Painting d)Hording

Yes/No Yes/No

15. media:

Your opinion towards the advertisement given in the above source of

a)Highly Attractive b) Attractive c)Ok d)Bad .16. Please give any suggestion: