A PROJECT REPORT ON Market research on assessing the factors influencing in selection of cold drinks in restaurants of bangalore and comparative

analysis of coke and pepsi with respect to these factors and evaluating impact of brrrr advertisement and minute maid nimbu fresh campaign of coke

Submitted in partial fulfillment of the requirement For MBA degree course By AMIT KUMAR SHUKLA Reg no :1021405 Under the guidance of Faculty Guide: Ms Vertika verma Sr. Lecturer Dept. of MBA,Christ university Bangalore Company guide: Mr. Anand Ratnaparkhi Channel manager HCCBPL Bangalore

CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT BANGALORE -560 029

MBA 2010-2012

DECLARATION
I hereby declare that the project study titled Market research on assessing the factors influencing in selection of cold drinks in restaurants of bangalore and comparative analysis of coke and pepsi with respect to these factors and evaluating impact of brrrr advertisement and minute maid nimbu fresh campaign of coke is my original work carried out during the period from April 2011 to May 2011 under the guidance of Professor Ms. Vertika Verma Sr. Faculty Guide, Christ University Institute of Management, Bangalore and Mr. Anand Ratnaparkhi Channel manager HCCBPL bangalore, Karnataka. I also declare that this project has not been submitted nor shall it be submitted in future to any other University or Institution for the award of any other Degree or diploma. DATE: PLACE: BANGALORE AMIT KUMAR SHUKLA

ACKNOWLEDGEMENT
I would like to thank my Mr. Anand Ratnaparkhi, channel Manager, Coca-Cola India, without whom an internship with, Hindustan Coca-Cola Beverages Private Limited (HCCBPL) would not have been possible. I am grateful to him for having taken time off his busy schedule and spoken to the concerned person to get me this internship. I express my gratitude to the Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for having given me an opportunity to work with them and make the best out of my internship. I thank my trainers, Miss Prema Prabha and Mr.Anand Patted for having trained me and constantly guided and supported me throughout the training period. My heartfelt gratitude also goes out to the staff and employees at HCCBPL for having co-operated with me and guided me throughout my internship period. I thank Christ University institute of Management Studies for having given me this opportunity to put to practice, the theoretical knowledge that I imparted from the program. I thank the internship guide, miss Vertika verma for having guided and supported me through the course of the internship. I take this opportunity to thank my parents and friends who have been with me and offered emotional strength and moral support.

EXECUTIVE SUMMARY

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 worlds 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. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramelcolored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. 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. This is a primary research project. This project is broadly classified in three Parts; the first part gives us factors influencing selection of cold drinks in restaurants and competitive analysis of coke and pepsi wrt these factor,second part describes impact of BRRR advertisement and effectiveness of whole campaign and third part deals Analysing effectiveness of MMNF rgb 200ml campaign.. The findings of the activity have been drawn out in form of graphs and suggestions have been offered there from.

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION7 1.1: A brief insight- The FMCG Industry in India..8 1.2: A brief insight- The Beverage Industry in India.10 Figure 1: Beverage Industry in India.10

CHAPTER 2: THE COCA-COLA COMPANY12 2.1:History12 2.2: History ofBottling..13 2.3: Manifesto for Growth16 2.3.1:Values...16 2.3.2:Mission16 2.3.3: Vision for Sustainable Growth...17 CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED..18 3.1: About the Company.18 Figure 2: Location of COBO, FOBO and Contract packers..19 3.2: Manifesto for Growth19 3.2.1: Quality Policy.19 3.3: Business plan model20 Figure 3: Business plan model ...20 3.4: Distribution Network.20 3.4.1: Distribution Routes.22 3.4.2: Distribution System22 3.4.3: Departments involved in the Distribution process.22 5

3.5: SWOT Analysis of HCCBPL23 3.5.1: Strengths.23 3.5.2: Weaknesses24 3.5.3: Opportunities.24 3.9.4:Threats25 3.6: Competitors to HCCBPL25 CHAPTER 4: PRODUCTS27 4.1: Packaging details 40 CHAPTER 5: Factors influencing selection of cold drinks in restaurants 30 5.1 Executive summary.30 5.2 Research methodology.31 5.3 Tools of data collection31 5.4 Analysis and result32 5.5 Coclusion..39 5.6 Suggestion.40 5.7 Appendix..42 CHAPTER 6: Evaluation of Advertisement campaign Brrrr.43 6.1 Problem statement44 6.2 Research objective44 6,3 Importance of this project44 6.4 Reasons for selecting this project.45 6.5 Literature survey..46 6.6 Basic introduction to advertisement..47 6.6.1 Types of advertisements.48 6.6.2 How to measure sales effectiveness of ads..48 6.7 Techniques for measuring advertising effectiveness.50 6.8 Official statistics of Brrrr ad campaign..50 6.9 Highlights in history of coke tv ad53 6

6.10 Sampling design..58 6.11 Research design 59 6.12 Data collection.60 6.13 Data analysis62 6.14 Conclusion71 6.15 Appendix.72 CHAPTER 7: A nalysis of Consumer and retailer behavior towards minte maid nimbu fresh rgb 200 ml74 7.1 Executive summary.74 7.2 About the product MMNF...75 7.3 Promotional strategies.76 7.4 Objective of the study..77 7.5 Problem statement77 7.6 Research methodology.78 7.7 Analysis.80 7.8 Findings..91 CHAPTER 8: References.96

CHAPTER 1: INTRODUCTION _______________________________________________

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 worlds leading manufacturer, marketer and distributor of nonalcoholic 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 Companys 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 worlds 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 Companys assets and resources whilst limiting business risks.

1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular, March) The FMCG sector consists of the following categories: Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble. Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman. Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, CocaCola, Cadbury, Pepsi and Dabur Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

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1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

BEVERAGES

Alcoholic

Non-Alcoholic

Carbonated

Non-Carbonated

Cola

Non-Cola

Non-Cola

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there 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 and sports beverages

Natural and Synthetic beverages

In-home consumption and out of home on premises consumption.

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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.

If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category. Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.

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CHAPTER 2: THE COCA-COLA COMPANY _______________________________________________

2.1: HISTORY
Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned CocaCola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.

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The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys incorporation, Mr. Candler announced in his annual report to share owners that Coca-Cola is now drunk in every state and territory in the United States. As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

2.2: HISTORY OF BOTTLING

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the worldfamous brand it is today.

YEAR WISE HISTORY OF BOTTLING:

Year 1894: A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. Year 1899: The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling

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Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. Year 1916: Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world. In the 1920s: Bottling overtakes fountain sales As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. In the 1920s and 1930s: International expansion Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. In the 1940s: Post-war growth

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During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business.

In the 1950s: Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960. In the 1960s: Introduction of new brands Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world. In the 1970s and 1980s: Consolidation to serve customers Advancement in technology led to global economy, retail customers of The Coca-Cola Company merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.

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21st Century: Coca-Cola today The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

2.3: MANIFESTO FOR GROWTH

2.3.1: VALUES:
Coca-Cola values serve as a compass for their actions and describe how they behave in the world: LEADERSHIP: The courage to shape a better future

COLLABORATION: Leverage collective genius

INTEGRITY: Be real

ACCOUNTABILITY: If it is to be, its up to me

PASSION: Committed in heart and mind

DIVERSITY: As inclusive as our brands

QUALITY: What we do, we do well

2.3.2: MISSION
To Refresh the World...

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To Inspire Moments of Optimism and Happiness...

To Create Value and Make a Difference.

2.3.3: VISION FOR SUSTAINABLE GROWTH

PEOPLE: Be a great place to work where people are inspired to be the best they can be.

PORTFOLIO: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy peoples desires and needs.

PARTNERS: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

PLANET: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

PROFIT: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.

PRODUCTIVITY: Be a highly effective, lean and fast-moving organization.

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CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL) _______________________________________________

3.1: ABOUT THE COMPANY
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce 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 Parles plants and a well set bottling network, an excellent base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, 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. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002. 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

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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. Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide.

COBO FOBO CONTRACT PACKAGING

FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

3.2: MANIFESTO FOR GROWTH

3.2.1: QUALITY POLICY

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To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processesEvery time.

3.3: BUSINESS PLAN MODEL AT HCCBPL

Coca-Cola India division,

Manufactures Concentrate, Beverage base and Syrup

Regional Bottlers COBO/FOBO

Manufactures finished Bottles/Cans/Fountain Syrup

Customers

Consumers

FIGURE 3: BUSINESS PLAN MODEL

3.4: DISTRIBUTION NETWORK

HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them. A typical distribution chain at HCCBPL would be:

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Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail Stock --Retail Shelf --- Consumer The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and well organized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.

3.4.1: DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as follows: Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc. Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product. Examples: Departmental stores, Super markets etc. Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc. General: Under this route, all the outlets that come in a particular area or an area along with its neighboring areas are catered to. The consumption period is not taken into consideration in this particular route.

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3.4.2: DISTRIBUTION SYSTEM

Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level. Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management) Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.

3.4.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

The Distribution process mainly consists of three departments: Distribution Department: It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, coordinates with distributors for collections and monitors distribution stocks and their set-up. Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm, records collections from distributors, periodically reconciles

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outstanding balances from distributors, obtains balance confirmation from distributors and follows up outstanding balances. Shipping or Warehousing Department: It dispatches goods as per approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner.

3.5: SWOT ANALYSIS OF HCCBPL

3.5.1: STRENGTHS
DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the CocaCola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated that the CocaCola brand was worth $70.45billion. (http://news.bbc.co.uk/1/hi/business/4706275.stm) LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.

3.5.2: WEAKNESSES 24

LOW EXPORT LEVELS: The brands produced by the company are brands produced world wide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Companys operations are carried out on a small scale and due to Government restrictions and red-tapism, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.

3.5.3: OPPORTUNITIES
LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market. EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.

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HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.

3.5.4: THREATS
IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems. SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the companys products.

3.6: COMPETITORS TO HCCBPL

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The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks. The key competitors in the industry are as follows:

PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends
for the World's # 2, carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew,Nimbooz and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to Pepsi.

Nestl: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk
products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people.

Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever since
times and people have laid all their trust in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange.

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CHAPTER 4: PRODUCTS _______________________________________________

The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to bottle or pack the existing drinks. The Coca-Cola Company has a wide range of products out of which the following products are marketed by HCCBPL:

In the Cola Section:

In the Lemon section:

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In the Orange section:

In the Juice section:

In the Soda Water and Bottled Mineral Water section:

In the Tonic Water section:

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4.1: PACKAGING DETAILS

Coca-Cola, Thums Up, Fanta ,Limca and Sprite: 330 ml can, 200 ml and 300 ml returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles Diet Coke: 330 ml can and 500 ml PET bottle

Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack

Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles

Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET bottles

Schweppes Mineral Water: 750 ml PET bottles

Schweppes Tonic Water: 330 ml can

Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free and 1.5 litre PET bottles.

Minute Maid Nimbu Fresh : 400 ml and 1 litre PET bottles,RGB 200 ml

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CHAPTER 5 5.1 Executive summary:

In order to understand preference of restaurants serving cold drink a market research is being conducted so to bridge the gap between demand of E&D outlets and supply of coke. 5.1.1 Problem statement: To find out ways through which market share of coke can be increased in koramangla bangalore. 5.1.2 Reasearch Objective: To study impact of various factors affecting sales in E & D oulets. 5.1.3 Importance of this project: 1.coke will be able to analyze various factors affecting buying preference of E&D outlets. 2.Factors affecting sales 3.Competitors strength and weakness. 4.The project is a learning for me in my development towards becoming masters in business management. The various hurdles as well as supporting pillars display a valuable opportunity to learn from it and apply it in my practical life for a bright future. Lastly it teaches me the importance of the sales promotion.

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5.2 Research Methodology

Sampling: simple random sampling Data collection: Primary method Methodology: Administered survey Total no. Of respondants:170

5.3 Tools of data collection:

Questionnaire in survey: the questionnaire contained question on the reason for serving any cold drink in restaurant. In this question six parameters are given and respondent are asked to give each parameter a score on scale of 1 to 5. Then they are asked for the reason if they want to change cold drink and expectations. Then these questions are used to find the most important reason for the preference of the cold drink and the order of preference using one-tailed Anova. The restaurant using serving both Coca-cola and Pepsi are also asked to give a score on sale of 1 to 5 on these parameters with reference to Coca-Cola & Pepsi. Using these questions standing of Coca-cola on these parameters with comparison to Pepsi is checked using two sample t-tests. 32

5.4 Analysis and result

1. Comparison of mean scores and finding the order of importance of parameters for a preference of a cold drink. Given below are the mean scores of the parameters of preference of a cold drink.

* Here 1 is Consumer Preference; 2 is Offers and Promotion; 3 is margin given; 4 is ease of availability; 5 is fulfilment of orders; 6 is good service provided

From these descriptive one tailed hypothesis is formed to perform one tailed Anova. Hypothesis: Good service> Fulfilment of orders> Margin given> Ease of availability> Offers & promotion> consumer preference 33

ANOVA

Sum Between Groups Within Groups Total Squares 162.094 1124.161 1286.255

of df 5 1013 1018 Mean Square 32.419 1.110 F 29.213 Sig. .000

The significant value is less than 0.05 (i.e. value of alpha) so our hypothesis is accepted. i.e. Good service is more preferred reason over Fulfilment of orders which is more preferred over Margin given is preferred over Ease of availability which is more preferred over Offers & promotion which is preferred over consumer preference. Hence Good service is most preferred where as consumer preference is preferred the least. 2. To see the standing of Coca-cola on various parameters (Consumer preference, offers & promotional activities to restaurants, margin given to restaurants, ease of availability, timely and easily fulfilment of orders and service provided) with comparison to Pepsi, restaurants that keep both Pepsi and coca-cola were asked to rank both Coca-cola and Pepsi on these parameters on scale of 1 to 5. Then the mean of the samples for each parameter is compared with t-test to see which stands out Coca-cola or Pepsi. 2.1. Consumer prefers Coca-cola over Pepsi. Let C be the mean of consumer preference of coca-cola and P be mean for the sample of consumer preference of Pepsi 34

H0: C-P<=0 H1: C-P>0

t Test for Differences in Two Means (assumes equal population variances) Data Hypothesized Difference Level of Significance Population 1 Sample Sample Size Sample Mean Sample Standard Deviation Population 2 Sample Sample Size Sample Mean Sample Standard Deviation Intermediate Calculations Population 1 Sample Degrees of Freedom Population 2 Sample Degrees of Freedom Total Degrees of Freedom Pooled Variance Difference in Sample Means t Test Statistic Upper-Tail Test Upper Critical Value p-Value Reject the null hypothesis

0 0.05 30 3.363 1.188 30 2.266 0.739

29 29 58 0.978733 1.097 4.294576

1.671553 3.37E-05

Hence null hypothesis is rejected and alternate hypothesis is accepted i.e. coca-cola is more preferred over Pepsi by consumers. 2.2. No difference between Coca-cola and Pepsi in offers and promotion. Comparison of mean scores of Offers and Promotions of Coca-cola and Pepsi Let C be the mean of Offers & promotion of coca-cola and P be mean for the sample of Offers & promotion of Pepsi H0: C-P=0 H1: C-P<>0
t Test for Differences in Two Means (assumes equal population variances)

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Data Hypothesized Difference Level of Significance Population 1 Sample Sample Size Sample Mean Sample Standard Deviation Population 2 Sample Sample Size Sample Mean Sample Standard Deviation Intermediate Calculations Population 1 Sample Degrees of Freedom Population 2 Sample Degrees of Freedom Total Degrees of Freedom Pooled Variance Difference in Sample Means t Test Statistic Two-Tail Test Lower Critical Value Upper Critical Value p-Value Do not reject the null hypothesis

0 0.05 30 2.966 0.556 30 3.233 1.04

29 29 58 0.695368 -0.267 -1.24008

-2.00172 2.001717 0.21994

No difference between Coca-cola and Pepsi in offers and promotion. 2.3. Pepsi is giving more margin than coca-cola. Comparison of mean scores of Margin given by Coca-cola and Pepsi Let C be the mean of Margin given by coca-cola and P be mean for the sample of Margin given by Pepsi H0: C-P>=0 H1: C-P<0
t Test for Differences in Two Means (assumes equal population variances) Data Hypothesized Difference Level of Significance Population 1 Sample Sample Size Sample Mean Sample Standard Deviation Population 2 Sample Sample Size Sample Mean

0 0.05 30 2.233 0.897 30 4.033

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Sample Standard Deviation Intermediate Calculations Population 1 Sample Degrees of Freedom Population 2 Sample Degrees of Freedom Total Degrees of Freedom Pooled Variance Difference in Sample Means t Test Statistic

1.066

29 29 58 0.970483 -1.8 -7.07659

Lower-Tail Test Lower Critical Value p-Value Reject the null hypothesis

-1.67155 1.09E-09

Hence null hypothesis is rejected and alternate hypothesis is accepted i.e. Pepsi gives more margin than Coca-cola. 2.4. Pepsi is more easily available than Coca-cola Comparison of mean scores of Ease of availability of Coca-cola and Pepsi Let C be the mean of Ease of availability of coca-cola and P be mean for the sample of Ease of availability of Pepsi H0: C-P>=0 H1: C-P<0
t Test for Differences in Two Means (assumes equal population variances) Data Hypothesized Difference Level of Significance Population 1 Sample Sample Size Sample Mean Sample Standard Deviation Population 2 Sample Sample Size Sample Mean Sample Standard Deviation

0 0.05 30 2.466 0.897 30 3.366 0.927

Intermediate Calculations Population 1 Sample Degrees of Freedom Population 2 Sample Degrees of Freedom Total Degrees of Freedom

29 29 58

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Pooled Variance Difference in Sample Means t Test Statistic Lower-Tail Test Lower Critical Value p-Value Reject the null hypothesis

0.831969 -0.9 -3.82151

-1.67155 0.000163

Hence null hypothesis is rejected and alternate hypothesis is accepted i.e. Coca-cola is less easily available than Pepsi. 2.5. Orders are timely & easily fulfilled by Pepsi than Coca-cola Comparison of mean scores of Fulfilment of Order of Coca-cola and Pepsi Let C be the mean of Fulfilment of Order of coca-cola and P be mean for the sample of Fulfilment of Order of Pepsi H0: C-P>=0 H1: C-P<0
t Test for Differences in Two Means (assumes equal population variances) Data Hypothesized Difference Level of Significance Population 1 Sample Sample Size Sample Mean Sample Standard Deviation Population 2 Sample Sample Size Sample Mean Sample Standard Deviation Intermediate Calculations Population 1 Sample Degrees of Freedom Population 2 Sample Degrees of Freedom Total Degrees of Freedom Pooled Variance Difference in Sample Means t Test Statistic Lower-Tail Test Lower Critical Value p-Value Reject the null hypothesis

0 0.05 30 2.1 0.844 30 3.5 0.937

29 29 58 0.795153 -1.4 -6.08063

-1.67155 5.02E-08

38

Hence null hypothesis is rejected and alternate hypothesis is accepted i.e. in Coca-cola Orders are less timely & easily fulfilled than Pepsi. 2.6. Pepsi provides better service than Coca-cola Comparison of mean scores of Service provided by Coca-cola and Pepsi Let C be the mean of Service provided by coca-cola and P be mean for the sample of Service provided by Pepsi H0: C-P>=0 H1: C-P<0

t Test for Differences in Two Means (assumes equal population variances) Data Hypothesized Difference Level of Significance Population 1 Sample Sample Size Sample Mean Sample Standard Deviation Population 2 Sample Sample Size Sample Mean Sample Standard Deviation Intermediate Calculations Population 1 Sample Degrees of Freedom Population 2 Sample Degrees of Freedom Total Degrees of Freedom Pooled Variance Difference in Sample Means t Test Statistic Lower-Tail Test Lower Critical Value p-Value Reject the null hypothesis

0 0.05 30 2.866 0.628 30 3.666 0.711

29 29 58 0.449953 -0.8 -4.61905

-1.67155 1.1E-05

Hence null hypothesis is rejected and alternate hypothesis is accepted i.e. Pepsi provides better service than Coca-cola. 39

5.5 Conclusion
1. For the parameters of preference of any cold drink in a restaurant,, the order of importance is Good service is more preferred reason over Fulfilment of orders which is more preferred over Margin given is preferred over Ease of availability which is more preferred over Offers & promotion which is preferred over consumer preference.

2. Good service is most preferred where as consumer preference is preferred the least.

3. In the restaurants where both Coca-cola and Pepsi are served coca-cola is more preferred by customers over Pepsi. Offers and Promotion by Pepsi and Coca-cola are on same score. Whereas on parameters of Margin given, Ease of availability, Fulfilment of Order and Good service provided Pepsi scored better than Coca-cola.

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5.6 Suggestions:
1.Most outlets using pepsi exclusively are ready to come to coke if proper sales promotion is done. 2.Coke should start credit payment or payment on bill for small outlets. 3.Post sales service needs to be improved. 4.As coke is preffered by consumer so direct sales can do the trick. 5.In many restaurants which has been opened since 6months,but so far no body from coke has approached them and they want coke,so this gap should be bridged.

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5.7 Appendix:
Questionnaire: Name of restaurant: ___________________________________________________________ Address: _____________________________________________________________________ _____________________________________________________________________ Contact no: ___________________________________________________________________ Contact person: ________________________________________________________________ Number of chair in restaurant for sitting of customers: _________________________________ You serve cold drink of which company Coca cola Pepsi Any other (please mention)_______________________ Listed below are some reasons for the preference of a particular company. On the scale if 1 to 5 please give score for each reason, where 1 being most important reason and 5 being least important reason. 1 5 (Most important reason) (Least important reason) 1 Number of orders per month Consumer preference Offers and promotions given by company Margin given by company Ease of availability Fulfilment of orders Good service by company Any other reason ________________________________________________________________ ________________________________________________________________ Is there any chance of changing the company of cold drink Yes No Ways__________________________________________________________________ 2 3 4 5

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__________________________________________________________________ If you are not using Coca cola and want to shift to Coca cola what will be your expectations ________________________________________________________________________________ ________________________________________________________________________________

CHAPTER 6:
EXECUTIVE SUMMARY The problem statement under consideration is to study the impact of Brrrr ads on its sales . Coke is a product very commonly consumed by us. Cokes advertising has always been very popular and important point is how much has this advertisement aided in improving its sales. This is the basic aim for taking up this project. Coca Cola launched their globally successful Brrr Campaign in India in March 2011. The campaign has been launched in India after it has been successfully launched in 41 markets across the World. The Campaign was originally shot for the African Market. As per Coca Cola, the latest campaign is based on a spontaneous Brrr expression, a feeling of refreshment one derives after sipping an icy cold Coca-Cola. Coca-Cola Brrr campaign is designed to serve as the platform for all integrated marketing initiatives for brand Coca-Cola globally. Therefore this study is based on finding the impact of these ads on the company sales. The project is important with respect to advertising agencies, students for future research and companies (in terms of importance of an ad in bringing sales to the company). The literature survey includes newspaper and magazine articles and the websites. I have used books on research and advertising management by authors like Roger Barton, Frank Jefkins and Philip Kolter. The target population has been that of students (age 15-25 yrs) of Koramangala.

43

Pilot studies, followed by survey method (self-administered questionnaire) have been used to collect the data. The analysis has been done using SPSS. The important findings of the survey are: 1. The maximum coke consumers drink coke 1-5 times in a month. 2. 97% of the respondents consumed coke. 3. All the respondents have seen the ad. 4. Advertisements of coke have been viewed maximum on TV and hoardings. 5. Imran khan is the most preferred brand ambassador 6. 69% of the people felt like buying coke after watching the Brrr coke commercial. 7. Loyal customers constitute 32% of the respondents 8. We have accepted our null hypothesis.( the proportion of coke consuming population has increased after watching the commercial) Thus i can conclude that my study has been successful and the ads have made a definite impact on its sales and people have indeed started consuming more of coke after watching the commercial. The coke ad therefore has the ingredients of successful advertising. It has the creativity to attract and win the attention, interest and eventually the action of consumers by using innumerable media leading to higher sales and customer value. 6.1 PROBLEM STATEMENT To find out if the Brrr advertisement had an impact on the sales of coke. 6.2 RESEARCH OBJECTIVE To Study the impact of new Brrrr ADS on its sales.

6.3 IMPORTANCE OF THIS PROJECT

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This project has grave importance in terms of learning as well as being a base for future research endeavors. First of all it is the introduction to the world of advertising, its impact, its relation to sales and overall contribution to marketing. Secondly, it teaches various methodologies used by MNCs like Coca-Cola for growth of its sales. Third, it shows how similar campaign can work in different countries. The project is a learning for me in my development towards becoming masters in business management. The various hurdles as well as supporting pillars display a valuable opportunity to learn from it and apply it in my practical life for a bright future. Lastly it teaches me the importance of the advertising.

6.4 REASONS FOR SELECTING THIS PROJECT:

Coke is a product very commonly consumed by us. Cokes advertising has been always very interesting but the important point is how much has this ad aided in improving its sales. This is the basic aim for taking out this project. Secondly, it makes me aware about various steps of research methodologies. Experience is the best teacher and i will know about the intricacies of data collection, conducting research and presenting the findings in a lucid manner. I can very easily relate to the product since I myself is a consumer of coke and as a MNC its policies have always been innovative and differentiating. This prompted me to take a company like Coke. Being marketing students, advertising is one of the important sections in marketing. I am genuinely interested in advertising and i would like to know how much role advertising plays in the sales generation of the company. The advertisement Brrrr has been very popular among the masses and the classes alike. This was the reason why i selected this ad because it covered two factors: similar ads in all countries

45

and Imran khan and Aamir khan comparison as who will fit in more as brand ambassador of coke.

6.5 LITERATURE SURVEY

PRIMARY SOURCES: Official coke statistics Periodicals Internet web-sites Market research(Direct contact) SECONDARY SOURCES:
BOOKS:

1. 2.

Handbook of advertising management by Roger Barton Advertising by Frank Jefkins

3. Marketing management by Philip Kotler

NEWSPAPERS:

1. The Times of India 46

2. The Economic Times

6.5.1LITERATURE REVIEW

There is no doubt that any one would have missed the Brrr or Brrrrrrp brrrrrrrp papa . The Coke people have popularized their product with these wonderful punch lines. Unleashing a contagious wave of refreshment this summer, Coca-Cola India has unveiled the Brrrrr campaign, the globally successful campaign for brand Coca-Cola. The latest communication is based on a spontaneous Brrr expression, an inexplicable and spontaneous feeling of upliftment one derives after sipping an icy cold Coca-Cola. Coca-Cola Brrr campaign is designed to serve as the platform for all integrated marketing initiatives for brand Coca-Cola globally. First in the series of campaigns for 2011, it features Bollywood Heartthrob and the Coca-Cola Brand Ambassador- Imran Khan. India is one of the first few strategic markets to roll out Coca-Cola Brrrrr campaign following its successful run across 41 markets globally. 6.6 BASIC INTRODUCTION TO ADVERTISING: Advertising belongs to the modern industrial world, and to those countries which are developing and becoming industrialized. In the past the shop keepers or stall holders had only to show and shout their goods to passer-by, advertising as we know it now hardly existed. The need for advertising developed with the expansion of population and the growth of towns, mass production in factories, transportation development, and popular newspapers in which to advertise. Advertising grew with the development of media, such as the coffee-house newspapers of the seventeenth century. The large quantities of goods being produced were made known by the way of advertisements to customers who lived far from the placed of manufacture. The modern world depends upon advertising. Mass production requires mass consumption which in turn requires advertising to the mass market through the mass media. The Institute of

47

Practitioners in advertising definition says: advertising presents the most persuasive possible selling message to the right prospects for the product or service at the lowest possible cost. HEART OF ADVERTISING: These two reasons provide an insight into the heart of advertising and the special skills involved. Creativity to attract and win the attention, the interest and eventually the action of consumers, and the most cost-effective choice and use of innumerable media, are the characteristics of successful advertising.

6.6.1 TYPES OF ADVERTISEMENTS: Advertising serves many purposes and many advertisers, from the individual who places a small classified advertisement in the local newspaper to the big spender who uses networked TV to sell popular brands across the globe. There are primarily seven main categories of advertising, namely consumer, business-to-business, trade, retail, financial, direct response and recruitment. The FMCGs (fast moving consumer goods) advertising is called the consumer advertising type. Thus, Coca-cola ads are an example of consumer advertising. When planning an advertising campaign it is necessary to define the social grade or grades of likely buyers, and to select the media which will reach them in the largest numbers at the lowest cost. In case of consumer advertising the primary media are the presses, radio, television, outdoor and to a limited extent cinema, supported by sales literature, exhibitions and sales promotions. 6.6.2 HOW TO MEASURE SALES EFFECTIVENESS OF ADVERTISING Advertising effectiveness means different things to the groups responsible for different effects. To the writers or artist effective advertising is that which reaches prospective buyers a sufficient number of times. To the advertising or marketing managers effective advertising is that which,

48

together with other marketing forces, sells his brand or product. To the general manager, effective advertising produces a return on his firms expenditure. In fact, advertising must achieve a sufficient combination of all the four goals, delivering message to the right audience, thereby creating sales at a profit. Some advertisers have set communication and audience goals, and measured copy and media effects, but few advertisers have set rupee goals and measured sales and profit effects. Managements belief that advertising measurement is difficult or impossible is also changing, largely as the result of increasing number of studies which have obtained relatively unambiguous and actionable measures of advertising, not only in terms of audience and communication, but also in terms of sales and profit. 6.6.3 THE DILEMMA: COMMUNICATION OR SALES? The most debatable issue in advertising is whether advertising should be evaluated according to its effect upon communication (awareness of brand, attitude towards the brand, knowledge of the advertising message) or in terms of sales. Communication message have been largely defended largely by agencies, accustomed as they have been to using these measures to make rapid decision, alternative forms of copy or media. Sales measures have been advocated by large advertisers for whom small percent increase in advertising sales efficiency would more than pay for the research required. There are objections that sales are a result of many factors over which they have no control: price, distribution or product quality. They fail to note that communication also results from such factors. While the argument still simmers, many advertisers and agencies have agreed that measures of both communication and sales are necessary. Without the sales measure, no guidance can be had to adjust the budget and its locations towards demonstrably more profitable combinations. Without communication measures, no guidance can be had to improve the advertising itself towards provably motivating copy and media. Thus agencies measure

49

communication effects in the hope of improving the copy and media decisions, while advertisers measure sales in the hope of improving their budgetary decisions.

6.7 TECHNIQUES FOR MEASURING ADVERTISING EFFECTIVENESS

There are four methods for measuring advertising effectiveness 1. Theme or platform research 2. Copy research 3. Media research 4. Sales research We have selected sales research for measuring advertising effectiveness because: Knowledge of motives, copy or media will not tell the advertiser what, if anything, his advertising has done to influence the sales of his product. For this information he must conduct sales research, which isolates the contribution his advertising expenditures, makes to sales. Sales research Three kinds of evidence are cited to link sales to advertising expenditures. 1. The most frequently practiced is the correlation of expenditure with sales. This is important for those companies for whom sales are wholly dependent on advertising. 2. Also widely employed are correlations of reports of advertising exposure with reports of purchase. This approach is accepted by most segments of the advertising fraternity, but it is also questionable how well cause and effect are measured. Experimental method: a third approach and one that is currently in limited but growing use in advertising-sales research is the experimental method. It requires, among other things, that extraneous influences on sales be dealt with; that controllable factors be controlled; uncontrollable but measurable factors be measured and accounted for statistically; and enough experimental units be in each treatment to permit accurate estimates of their variability.

6.8 OFFICIAL STATISTICS OF BRRRR AD CAMPAIGN

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After the success of the African campaign, the Brrr went to 40 other markets becoming one of the most successful campaigns for Coke. The campaign was launched many countries like South Africa, Vietnam, Philippines, Pakistan, Sri Lanka, Middle East etc. Now it has been launched in India. The Indian campaign features bollywood actor Imran Khan also as brand ambassador. Cokes Brrr in India has been conceptualized by the creative team of McCann Erickson. The campaign has not been able to pick itself real well in India as was expected. There are plenty of reasons for that. 1) Timing of the ad : The ad was launched during the Cricket World Cup which is being held in India. People expect cricket everywhere, also in the campaigns and Coke missed that completely. 2) Change the Game Campaign by Pepsi : Rivals Pepsi executed a super successful campaign involving Cricketing Nations called Change the Game. It has been highly successful in India and people loved it. It helped Pepsi gain the mindshare. Cokes campaign was not able to counter that completely 3) Execution a bit different : The execution of the Indian Brr campaign is a bit different than the global campaigns. The international ads have something in common but Indian ad is a bit different, may be a different ad agency has to do with it. Its early days still for the campaign which has proved itself 41 times. Coke has already launched 2 ads for Brrr in India. Second one is much more better than the first one, brings out the Brrr expression much better. Its interesting to see how much time it takes for the Brrr to become a national phenomenon in India. The globally successful mass media campaign is conceptualized by McCann Erickson in INDIA. Unleashing a contagious wave of refreshment this summer, Coca-Cola India has unveiled the Brrrrr campaign, the globally successful campaign for brand Coca-Cola. The latest 51

communication is based on a spontaneous Brrr expression, an inexplicable and spontaneous feeling of upliftment one derives after sipping an icy cold Coca-Cola. Coca-Cola Brrr campaign is designed to serve as the platform for all integrated marketing initiatives for brand Coca-Cola globally. First in the series of campaigns for 2011, it features Bollywood Heartthrob and the Coca-Cola Brand Ambassador- Imran Khan. India is one of the first few strategic markets to roll out Coca-Cola Brrrrr campaign following its successful run across 41 markets globally. The strategic communication for Brrr in India has been conceptualized by the creative team of McCann Erickson - Prasoon Joshi, Executive Chairman McCann Worldgroup India , Regional Creative Director Asia Pacific McCann Worldgroup, Ashish Chakravarty, Creative Chief, Tirtha Ghosh, Creative Director and Nakul Sharma, Creative Director (Copy). The film, directed by Amit Sharma from Chrome Pictures, was rolled out on 6th March, Sunday. The communication opens in classroom where an authoritarian professor is holding a Chemistry Class on a hot and sultry day. Amidst this boredom filled environment, our protagonist, Imran Khan playing the role of a young student, tries to garner attention of his friend from outside the classroom. He tries to give her a bottle of Coke through the window. Instead of the girl, an older hand reaches out at the bottle. Unaware of this, Imran tries to peep into the class to find the Chemistry professor staring sternly at him. The angry professor takes a sip of Coke and spontaneously does a BRRRR jig. Imran along with the entire class is shocked to see that and immediately after the professor breaks into laughter and so does the rest of the class. This is followed by various situations where people from different walks of life share their spontaneous reaction after having an ice-cold Coke and go Brrrr. Speaking about the latest initiative, Prasoon Joshi, Executive Chairman McCann Worldgroup India , Regional Creative Director Asia Pacific McCann Worldgroup said, I am extremely excited about the latest commercial that we have done for Coca-Cola. Its a new concept and is inherent to the character of brand Coca-Cola. Brrr is a perfect expression that one derives when one has an icy cold Coca-Cola. Its the sound you make when something is icy cold. Its the involuntary shudder that you cant help giving in to. Its a ripple of energy thats infectious, funny and free, and it is really an invite this summer to do exactly the same with your friends and

52

family while you enjoy your icy-cold bottle of Coke. Open a chilled bottle of Coca-Cola, share and go Brrrrrrrr! Talking about the Brrr Campaign, Avinash Pant, Brand Director- Coca-Cola TMK, said, Over the years, Coca-Colas communication has managed to keep the world coming back for more. Brrr is our latest global campaign for brand Coca-Cola, which has created a spin-off effect globally. Coke Brrr campaign demonstrates the feeling you have when you drink an icy-cold Coca-Cola. You are so refreshed you cant help expressing the uplifting feeling, and that feeling is what we call Coca-Colas Brrr Effect. We want to spread this Brrr effect throughout the country and I am sure that this new communication will strike a chord with the Coca-Cola consumers. In-addition to leveraging mass media, integrated communication plan will also be complimented by a range of on the ground initiatives road shows and contests across all key markets. Clutter breaking Outdoor campaign using innovative and traditional out-of-home media has been conceptualized by Mukesh Manik, M-I-C, Encyclomedia Networks. Additionally, Coca-Cola India is providing an exclusive opportunity to all its consumers to come and experience CocaColas ice-cold refreshment through never seen before mediums Igloo at key strategic locations, Coca-Cola Eskimos in various touch points across cities, Flash Mobs and BRRR Troupes.

6 9 HIGHLIGHTS IN THE HISTORY OF COCA-COLA TELEVISION ADVERTISING

The first television ad created for The Coca-cola Company was produced in conjunction with a television special in 1950. The sponsorship of this program and its advertising were both by the DArcy Agency. DArcy had been the advertising agency for the Coca-Cola Company since 906, when it first persuaded the company to begin a newspaper campaign. It created memorable slogans for the company like the pause that refreshes.

53

Television advertising was initially an experimental medium for Coca-Cola and DArcy. Both struggled to develop a strategy to reach consumers effectively at a time when few cities had television stations. One approach was through sponsored programs that offered the opportunity for the company to expand relationships with performers from its radio programming. In 953, DArcy developed three basic types of television ads. In one type, the company offered stationidentification slides that aired for up to twenty seconds. These generally featured a piece of advertising art with the station call letters, accompanied by a voice-over announcement. DArcy also created its first live-action motion-picture films and one-minute versions. THE McCann Ads: In 1956, the companys advertising account was transferred to McCannErickson. The number of ads and their production values rose dramatically from 1956-1963. In 1963, McCann hit its stride with a campaign that proved to have worldwide appeal, Things GO Better With Coke. By design, these words also translated readily into almost any language allowing the slogan to generate global appeal.

Things Go Better With Coke

54

McCann also began experimenting with a new television technology, colour advertisimg. The first colour television ad for the company was introduced in 1964 and was called the refrigerator man. Throughout the 1960s, advertising for Coca-Cola on both radio and television reflected the changing forces in society. The Things go Better With Coke campaign was adapted to the youth market by allowing a number of popular-music artists to modify and perform the song. In 1976, the company also introduced the new Coke campaign, touting the brand as the soft drink for all occasions. Aimed at the young and young-at-heart, the new campaign, Coke adds Life to was designed to show viewers that Coca-Cola added simple enjoyment to life. It emphasized on refreshment and tried to show Coke as the perfect accompaniment to food, fun and leisure. The campaign highlighted the soft drinks role in many situations common to consumers around the globe and the ads theme was adapted to appeal to a worldwide audience.

After the Coke adds Life, another campaign was created that further emphasized there reliability and reward in drinking coca-cola. It was called Have a Coke and a Smile. In 1979, one of the most famous Coke commercials, Mean Joe Greene was created. This ad won the 1979, CLIO award in the worlds largest advertising awards competition. The New Coke: In early 1982, Coca-Cola launched a new ad campaign Coke is It! with the emphasis on the products qualities of taste and refreshment. It played on themes of previous ad campaigns stressing the quality, the enjoyment, and especially the anticipation of drinking a coca-cola.

55

Two tastes & two campaigns In 1985, the company brought out a new coke along with the old one, being called the traditional Coca-cola classic. They needed two distinct ad campaigns for the two products. In 1986, the Catch the Wave campaign for the new taste of Coke strove to be youthful, leadingedge and competitive. For the Coca-Cola classic, the Red, White and You campaign emphasized the brands broad appeal and the emotional attachment it generated. The campaigns were aimed at a broad audience: all soft drink consumers aged twelve and above, with an emphasis on the 18-34 age groups. The Catch the Wave campaign for new Coke, created by McCann-Erickson, aimed to connect with an emerging youth-oriented target audience. The contemporary nature of the ad sent the message: to drink the in taste, to identify with the in image, drink Coca-Cola.

988 saw a new advertising campaign, cant Beat the Feeling, which aimed to show Coca-Cola as an integral and natural part of peoples lives in everything from family to youthful fun. The ads featured upbeat music and played on broadly appealing themes such as music, love and family. The campaign was launched in nearly 100 countries marking the first ad campaign for the company outside USA in six years.

56

THE 1990s In 1993, the company made a dramatic shift in its advertising by introducing the Always CocaCola campaign. The campaign was a diverse one, with an initial run of twenty-seven commercials designed to appeal to specific audiences. The ads ran around the world and included a variety of technical innovative approaches, such as computer animation.

The polar bear was a considerable success and went on to star in six commercials for Coca-Cola including two ads for the 1994 Olympic Games. INTERNATIONAL approaches at the Millennium Numerous other ads in the Always Coca-Cola campaign were introduced over the next few years. Appealing to peoples enjoyment of the cola taste and the refreshment it provides, the commercials, used a variety of approaches-humour, music, stories, animation and even personalities to build an emotional connection between Coca-Cola and its consumers. The company launched its new international ad campaign in Jan 2000. Using the slogan CocaCola Enjoy the campaign was designed to appeal to people all over the world by persuading them that Coke adds a touch of magic to the special moments in their lives .Believing that Coke 57

is one of lifes most common and affordable pleasures in many countries, the company conceived of the new slogan as an invitation to consumers throughout the world to enjoy Coke and lifes simple pleasures. The theme was global, but the campaign used local resources in different countries to create individual commercials relevant to local tastes and culture. Its creators also developed a melody adaptable to a wide range of musical styles. Even as the campaign began there were 40 versions of the tune set in forty languages.

6.10 SAMPLING DESIGN Target population

Age: 15-25 years Occupation: students and young professionals Location: Koramangala (Bangalore)

Sample design
Sampling method: probability sampling systematic sampling Actual sampling units: 1. College going students 2. School going students 3. Proffesionals working in Accenture,Bosch etc.

58

6.11 RESEARCH DESIGN Exploratory research: Pilot studies Type of research used for the project: Causal research Basic research: Survey method Research instrument: Self administered questionnaire Contact method: Direct/ personal Sample size: 65 respondents

59

6.12 DATA COLLECTION

Break-up of sample

20% 49%

College SchooL
Proffesionals

31%

HYPOTHESIS STATEMENT HO: After watching the Ad, people have bought Coke H1: After watching the Ad, people didnt buyCoke 60

Calculation of sample size Let p= probability of people who bought coke after watching the ad q= probability of people who didnt buy after watching the ad n= number of people surveyed for the pilot study E=error rate (we are taking 90% confidence interval)

After conducting a survey among 10 prospects following was the result n=10 p=0.6 q=0.4 Using the formula N = Z2 x p x q E2

N = 1.642 x 0.6 x 0.4 0.12 N = 65 Thus the sample size is 65 respondents DATA ANALYSIS 1. Representation of data using graphical tools like bar charts and pie charts 61

2. Statistical analysis of data using SPSS 10.0

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6.13 DATA

ANALYSIS

ANALYSIS OF MEDIA USED FOR ADVERTISING COKE

70 60 50 40 30 20 10 0 ad in tv ad in hoardings Ad in new spaper ad in internet ad in magazines 15 65

NUMBER OF RESPONDENTS

22 15 13

MEDIA

The above bar chart shows the importance of TV and hoardings as an effective media for communication of the advertising in the most effective way.

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PREFERNCE OF COKE AMBASSADORS

The above bar chart shows that people have accepted Imran khan as well as Aamir khan as the most preferred ambassadors. Infact Imran has outnumbered all the other potentional ambassadors.

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FREQUENCY OF COKE CONSUMED IN A MONTH

Frequency Percent
21.5 36.9 9.2 26.2 6.2 100.0

Valid Percent
21.5 36.9 9.2 26.2 6.2 100.0

Cumulative Percent
21.5 58.5 67.7 93.8 100.0

Valid

0 1-5 6-10 10-20 20 Total

14 24 6 17 4 65

CONSUMPTION OF COKE
40 37 30

PERCENTAGE

26 20 22

10 9 6 0 0 1-5 6-10 10-20 >20

FREQUENCY OF COKE CONSUMED IN A MONTH

I have found from the survey that largely people consume coke 1-5 times in a month.

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FELT LIKE BUYING COKE AFTER WATCHING THE AD

Frequency Percent Valid Percent
69.2 30.8 100.0

Cumulative Percent
69.2 100.0

Valid

yes no Total

45 20 65

69.2 30.8 100.0

FEEL LIKE BUYING COKE AFTER WATCHING THE AD

80 69 60

PERCENT %

40 31 20

0 yes no

RESPONSE

The above bar chart shows the impact of the ad on minds of people as this shows how strongly has it clicked with the public who have watched the ad and have been influenced to buy coke.

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BUY COKE
Frequency Percent Valid Percent
66.2 33.8 100.0

Cumulative Percent
66.2 100.0

Valid

Yes No Total

43 22 65

66.2 33.8 100.0

PURCHASE OF COKE AFTER WATCHING THE AD

70 60 50 66

PERCENT %

40 30 20 10 0 yes no 34

RESPONSE

This is very important factor because it actually shows if the ad has been successful in bringing sales to the company.

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CONSUME COKE

Frequency Percent

Valid Cumulative Percent Percent

96.9 3.1 100.0 96.9 100.0

Valid

yes no Total

63 2 65

96.9 3.1 100.0

CONSUME COKE
120

100 97 80

PERCENT %

60

40

20

0 yes no

RESPONSE

This shows that the respondents consume coke.

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PERCENTAGE OF LOYAL CUSTOMERS

20, 32% NOT AFFECTED AFFECTED 43, 68%

There have been many respondents who have been consuming coke and it does not matter to them if they watch the ad or not, they are loyal customers who stay with the product irrespective of the ad and the company will definitely like to bring more and more customers into this bracket.

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IMPRESSION LEFT IN THE MINDS OF CONSUMERS OF THE AD

There are many things that remain in a persons mind after watching the ad. This shows how many desired effects have been successful.

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Chi-Square Test
BUY COKE
Observed N
Yes No 43 22 65

Expected N
41.2 23.8

Residual
1.8 -1.8

Total

TEST STATISTICS
BUY COKE
Chi-Square Degree of freedom Asymp. Sig. .215 1 .643

Note: 0.215 < 0.643. Thus we are accepting our NULL HYPOTHESIS that the consumption has indeed increased after the advertisement

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6.14 CONCLUSION

1. Our study has been a successful one. There has been a definite impact of Coke ads on its sales. 2. Coke has made a right choice by selecting Imran Khan as its brand ambassador as it has clicked a right chord with the target consumers of age group 15-25. 3. The media has been successful in creating awareness about Brrr and this will have a long term effect on its future sales. 4. Advertisements can be effective medium if it is used with the proper tools and made keeping in mind target audience.

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6.15 APPENDIX

Questionnaire
1. Do u Consume soft drinks? YES NO

2. Do you consume coke? YES NO

3. Where have you seen the coke ads? TELEVISION NEWSPAPER

HOARDINGS

INTERNET

MAGAZINES

4. Which coke ads are your favourite? AAMIR KHAN CRICKETERS

HRITHIK ROSHAN

IMRAN KHAN

5. Have you seen the new Brrrr ads?

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Yes

No

6. What is the first thing that comes to your mind when you see those ads? Dance Brrrr

IMRAN KHAN

HUMOUR

SONG

OTHERS

7. After watching the ads, did you feel like going out and buying the coke? YES NO

8. How often do you consume coke? 0 8-10 TIMES 11-20 TIMES

1-5 TIMES

GREATER THAN 20

9. Have you started buying coke after watching the Brrrr ads? YES NO

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CHAPTER 7:

7.1 EXECUTIVE SUMMARY

7.1.1 Title of the Project: "Analysis of retailer and consumer behavior towards Minute Maid Nimbu Fresh 7.1.2 Objective: 1. To study about the effectiveness of the promotion of the new product launched by HCCBPL- Minute Maid Nimbu Fresh RGB 200ml, in Bangalore city segmented on the basis of Consumer Income Level. 2. To study the consumer satisfaction level towards the new product launched by CocaCola- Minute Maid Nimbu Fresh RGB 200ml. 7.1.3Methodology: The study was essentially of qualitative nature on the opinion survey. 7.1.4 Data Approach: Primary and Secondary 7.1.5 Research Approach: Questionnaire and Personal Interview. 7.1.6 Sampling Plan: The sampling technique used is stratified sampling, in which the population is subdivided into strata or subpopulations. This was done because the study was done on three areas segmented by consumer income level. The sample size was for this survey was 75 retailers and 75 customers.

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7.2 ABOUT THE PRODUCT;MINUTE MAID NIMBU FRESH

The MINUTE MAID Brand: Minute Maid is a 62-year-old brand and entered the Coca-Cola fold in 1960.The history of the Minute Maid brand goes as far back as 1945 when the Florida Foods Corporation developed an orange juice powder. The company developed a process that eliminated 80% of the water content in orange juice to form a frozen concentrates which, when reconstituted created orange juice. The product was thereby branded Minute Maid, a name signifying the convenience and the ease of preparation i.e. the drink could be prepared in just about a minute. Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. Over the years, through innovation and unmatched consumer experience provided in over 60 countries, Minute Maid brand has clearly become one of the world's largest juice and juice drink brands. There are over a 100 products in the Minute Maid banner that include fruit drinks in various flavors. The first product under the Minute Maid Brand to be launched in India was Minute Maid Pulpy Orange in 2007. MINUTE MAID NIMBU FRESH: Minute Maid Nimbu Fresh, a lemon juice based drink, is the latest addition to the Coca-Colas stable. It has been especially developed for the Indian consumers without any added color or preservatives. Minute Maid Nimbu Fresh' is made from great quality fresh lemon juice concentrate, providing consumers with a great refreshing experience - just like natural, homemade nimbu pani'. Innovative consumer proposition of Minute Maid Nimbu Fresh is best explained by the brand's tagline Ghar ki yaadon ka ras.

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7.3 Promotional Strategies of Minute Maid Nimbu Fresh

1. Distribution of free samples to retailers and customers. 2. Television advertisement. 3. Trade letters for the retailers. 4. Hoardings in the main market areas. 5. Gala lauch with radio one team.

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7.4 OBJECTIVES OF THE STUDY

PRINCIPAL OBJECTIVES: 1.To study about the effectiveness of the promotion of the new product launched by HCCBPL- Minute Maid Nimbu Fresh RGB 200ml , in bangalore city segmented on the basis of Consumer Income Level. 2.To study the consumer satisfaction level towards the new product launched by CocaCola- Minute Maid Nimbu Fresh RGB 200ml.

SUB OBJECTIVES: 1. To find out whether the product is adequately available in the market. 2. To find out what is the demand of the product in the market. 3. To determine what is the response of the product vis--vis its competitor. 4. To determine the perception of the consumers about quality and taste of the product.

7.5 PROBLEM STATEMENT

Minute Maid Nimbu Fresh is the latest addition in HCCBPLs impressive product line.The product MMNF RGB200ml was launched on 10 th may 2011 in bangalore. As such the company has adopted many strategies for the promotion of the product in the city. The effectiveness of these promotional activities in retail outlets and also the satisfaction level of the consumers towards the product among the various consumer classes in very crucial. Also whether the product has received the same kind of response among the different classes of consumers is a very important issue. So this study was undertaken in the three areas, segmented according to consumer income level, to find out about effectiveness of the promotional strategies and level of consumer satisfaction

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7.6 RESEARCH METHODOLOGY

Research Design:
A research design calls for developing the most efficient plan of gathering the needed information. A research design is the specification of methods and procedures for acquiring the information needed. It is overall operational pattern or framework of the project that stipulates what information is to be collected from which source and by what procedure. For the present research it is a descriptive one as it describes certain market characteristics or functions.

Sampling Design:
The sampling technique used is stratified sampling, in which the population is subdivided into strata or subpopulations. This was done because the study was done on three areas segmented by consumer income level. The sample size was for this survey was 75 retailers and 75 customers. This was done in the following manner:

Consumer Income Class

Surveyed Localities

Respondents Retailers Customers 25

High

BTM

25

Medium

BANSHANKARI

25

25

Low

JP NAGAR 1st PHASE

25

25

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Methods of data collection:

The present study is based on both primary and secondary data. (i) Primary Data: Primary data has been collected by conducting a survey among the customers i.e. the retailers and consumers in the three income group areas in Bangalore city through using a questionnaire. (ii) Secondary Data: Secondary data have been collected from journals, leaflets, booklets and unpublished records of the organization.

Tools of Data Analysis:

The data has been analyzed by using appropriate statistical techniques such as percentage, bar charts and column charts.

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7.7 ANALYSIS & INTERPRETATION-RETAILERS RESPONSES 1. AVAILABILITY OF MINUTE MAID NIMBU FRESH:

Explanation: In the High income locality 52% of the outlets rated availability as Good and 36% as Fair while these ratings were 48% and 20% in case of Medium income locality and 76% and 16 % in case of Low income locality. The Poor rating is the highest in the Medium income level at 24%, while the Very good rating is consistent at 8% in all the three cases.

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Inference: Availability is best in the Low income locality followed by High income locality. In the Medium income locality it is the lowest.

2.

DEMAND OF MINUTE MAID NIMBU FRESH:

Explanation: In the High income locality 16% of the outlets rated the demand of MMNF as High and 44% as Medium. In case of Medium income locality these percentages were 24% and 40% respectively and 12% and 36% respectively in case of Low income locality. The Low demand rating was most in the Low income locality at 52% while in High income and Medium income localities it was 40% and 36% respectively.

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Inference: Demand is highest in the Medium income locality followed by High income locality. It is lowest in the Low income locality.

3.

RESPONSE OF MINUTE MAID NIMBU FRESH VIS-VIS ITS COMPETITOR NIMBOOZ:

Explanation: In the High income locality 12% respondents rated the response to MMNF as Satisfactory, 28% as Not satisfactory and 60% were neutral. In the Medium income locality 36% rated MMNF as having a better response than NIMBOOZ and 28% rated the response to NIMBOOZ as better, the remaining 36% were not sure. In the Low income locality 20% outlets rated the response to MMNF better and 40% rated NIMBOOZs response better. The remaining 40% were not sure.

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Inference: The response to MMNF vis--vis NIMBOOZ is the best in Medium income locality and the less in the Low income locality.

4.

BEST MEANS TO PROMOTE MINUTE MAID NIMBU FRESH:

Explanation: In the High Consumer Income locality 56% of the respondents said displaying the product in the outlet was the best means for promotion of the product. They were followed by TV ads at 32%. In the Medium Consumer Income locality 52% rated display as the most ideal medium followed by TV ads at 40% and hoardings and posters at 8%. In the Low Consumer Income locality 72% picked display as their choice as the best promotional tools followed by TV ads at 20% and hoardings at 8%.

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Inference: Displaying of the product in the outlet is rated high across all the three localities followed by TV ads.

5.

HAS

THE

PROMOTIONAL

ACTIVITIES

INCREASED

SALES:

Explanation: In the High Consumer Income locality 52% of the respondents agreed that the sales of MMNF have increased due to the promotional activities, while 20% responded in negative and 28% remained undecided. In the Medium Consumer Income locality 48% said that the promotional activities were successful in 85

increasing the sales while 28% were of the opposite view and 24% were not sure. In the Low Consumer Income locality 24% said that sales have increased but 36% did not agree to this view and 40% were neutral. Inference: The satisfaction level of the retailers towards the effectiveness of the promotional activities was the highest in the Medium Consumer Income locality followed by High Consumer Income locality and was lowest in the Low Consumer Income locality.

6.OTHER COMMENTS REGARDING MMNF:

Explanation: The retailers were asked if they had any further comments about MMNF. Amongst various issues taste, distribution, and the need for more promotion constituted nearly 70% of the responses. In the High Consumer Income Locality 36% said the taste of the product was not satisfactory where as 8% of the respondents said that more distribution and promotion are needed. In the Medium Consumer Income locality these percentages were 32% for taste, 28% for

86

distribution and 4% for promotion while in the Low Consumer Income locality it was 44% for taste, 16% for distribution and 24% for more promotion. Inference: Most of the retailers irrespective of locality feel the taste of the product was not satisfactory. This was followed by need for more distribution and more promotion.

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7.8 ANALYSIS AND INTERPRETATION-CONSUMERS RESPONSES

1. CONSUMER CAME TO KNOW ABOUT MINUTE MAID NIMBU FRESH FROM:

Explanation: In the High Consumer Income locality 60% of the respondents said that they came to know about the product from TV ads followed by 28% respondents who said that they became aware of the product when it was displayed in an outlet and the remaining 12% said they came to know about the product from hoarding and posters. These percentages were 52%, 40% and 8% respectively in case of Medium Consumer Income locality and for Low Consumer Income locality they were 72%,28% and 8% respectively.

88

Inference: TV ads are selected by the consumers as best means of promotion across all the income class localities followed by display in outlets and hoardings and posters.

2. SATISFACTION LEVEL OF THE CONSUMERS REGARDING THE PRICE OF THE PRODUCT:

Explanation: In the High Consumer Income locality 68% of the respondents rated the price of MMNF as satisfactory, followed by 12% rating as highly satisfactory. The remaining 20% were dissatisfied with the price. In the Medium Consumer Income locality 72% were satisfied with the price, 12% highly satisfied and 16% dissatisfied. In the Low Consumer Income locality 60% were satisfied with the price, 4% highly satisfied and 36% dissatisfied. Inference: Satisfaction level of the consumers regarding the price of MMNF is highest in the Medium Income Locality followed by High Consumer income locality. Satisfaction level

89

regarding price is much less in the Low Income locality as compared to the other two income class localities.

3. RESPONSE TO PACKAGING OF MINUTE MAID NIMBU FRESH:

Explanation: In the High Income locality 72% respondents rated the quality of packaging of the product as good while 28% rated it as excellent. In the Medium Income locality 68% rated the packaging as good while 28% rated it excellent and 4% poor. In the Low Income locality 68% rated the packaging as good where as 20% rated it as excellent and 12% as poor. Inference: The response to the packaging was most favorable in the High Consumer Income locality, followed by Medium Consume Income locality. It was least favorable in the Low Consumer Income locality. 90

4. CONSUMERS

SATISFACTION

LEVEL

REGARDING

THE

TASTE OF THE MINUTE MAID NIMBU FRESH:

Explanation: In the High Income locality 40% of the respondents said that they were satisfied with the taste of the product, while 8% said that they were highly satisfied with the taste. But majority 52% respondents were dissatisfied with the taste. In the Medium Consumer Income locality 44% response was recorded for both satisfied and dissatisfied while 12% respondents

91

were highly satisfied with the taste. In the Low Consumer Income locality 32% were satisfied and 4% were highly satisfied with the taste while 64% were dissatisfied with the taste. Inference: The satisfaction level of consumers towards the taste of MMNF is highest in the Medium Consumer Income locality while it is lowest in the Low Income locality.

5. COMPARISION OF MINUTE MAID NIMBU FRESH WITH NIMBOOZ:

Explanation: In the High Income locality 36% rated MMNF better than NIMBOOZ where as 36% rated it as worse. The remaining 40% were neutral. In the Medium Income locality these percentages were 40% as better, 20% worse and 40% neutral while in the Low Consumer Income locality the ratings were 32% better, 28% worse and again 40% neutral. Inference: In the Medium Consumer Income locality most consumers prefer MMNF over NIMBOOZ. This is followed by High Consumer Income locality.

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7.9 FINDINGS ON THE BASIS OF RETAILERS RESPONSES 1. On the whole availability of the product is good except for Medium Income localities
where it was a little less than the other areas. Also when retailers were asked about other issues for the product 28% of the respondents from Medium Income area said supply is inadequate.

2. Demand of the product is good on the whole with Medium Income area being the
highest. Demand is a little less in the Low Income localities.

3. Response of the product vis--vis its competitor NIMBOOZ is quite satisfactory in High
and Medium Income areas. In the Low Income localities NIMBOOZ has a better edge over MMNF as compared to other income class areas.

4. The price of Minute Maid Nimbu Fresh is quite satisfactory according to retailers across
all the consumer income class areas.

5. Retailers across all the consumer income class areas rated displaying of the product in
the outlet as the best means to promote MMNF.

6. According to majority of the retailers of High Income and Medium Income area the
various promotional activities have increased sales.

7.10 ON THE BASIS OF CONSUMERS RESPONSES 1. According to the responses of consumers across all the consumer income class localities
TV ads is the best way to promote MMNF.

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2. Satisfaction level of the consumers towards the price of MMNF was satisfactory.On the
whole consumers response was that MMNF is a value for money proposition.

3. Packaging of the product is quite good according to the consumers of all the income
classes.

4. The taste of MMNF has been rated as dissatisfactory by a large portion of the
consumers across all the areas - 52% in the High Income area, 44% in the Medium Income area, and 64% in the Low Income area. When probed further these consumers unanimously said that the taste is artificial and not like natural lemon juice.

5. Most of the consumers in all the three areas have chosen MMNF over its competitor
NIMBOOZ as the more preferred drink.

7.11 LEARNING

1. Retailers have rated display as the best way to promote the product. So proper display
of MMNF should be maintained.

2. According to the consumers TV ads are the best way to promote MMNF, so more
emphasis should be put on the TV ad campaign.

3. The issue regarding the artificial taste, as many consumers have labeled it needs to be
looked into by the company. This is completely contrary to the positioning of the product with its tag line being Ghar ki yaadon ka ras.

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7.12 ANNEXURE
QUESTIONNAIRE FOR RETAILERS

Name of the outlet Location Channel Convenience Grocery E&D Type 1 E&D Type 2

1. Availability of Minute Maid Nimbu Fresh RGB 200ml in peak season i.e. in summer season -Poor fair good very good

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2. What is the demand of Minute Maid Nimbu Fresh RGB 200ml in the market? High Medium Low

3. The response to MMNF RGB 200ml vis--vis its competitor- NIMBOOZ is Satisfactory Not Satisfactory Cannot say.

4. Price of Minute Maid Nimbu Fresh RGB 200ml according to consumer view point is ----Not satisfactory Hoardings/posters Satisfactory TV ads Highly satisfactory Displaying in the outlet 5. According to you which one is the best media to promote Minute Maid Nimbu Fresh RGB 200ml ?

6. Do you think that the promotional strategies adopted for Minute Maid Nimbu Fresh RGB 200ml by Coca Cola are effective and have led to increase in the sales of MMNF? Yes No Not sure

7. Comments on Minute Maid Nimbu Fresh ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------QUESTIONNAIRE FOR CONSUMERS Location 1. How did you come to know about our product Minute Maid Nimbu Fresh RGB 200ml? Newspaper Television ads Radio Postering/ banner

2. How satisfied are you with the price of Minute Maid Nimbu Fresh RGB 200ml? Satisfied Very satisfied Dissatisfied

3. The packaging quality of Minute Maid Nimbu Fresh RGB 200ml ----Poor Good Excellent

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4.

How satisfied are you with the taste of Minute Maid Nimbu Fresh RGB 200ml? Satisfied Very satisfied Dissatisfied

5.

How would you compare our product, Minute Maid Nimbu Fresh RGB 200ml, with its competitor NIMBOOZ? Better Worse Cannot compare

6. Comments on Minute Maid Nimbu Fresh RGB 200ml ------------------------------------------------------------------------------------------------------------

CHAPTER 8: REFERENCES
Bibliography:

1. Kotler, Philip; Keller, Kevin Lane; Koshy, Abraham and Jha Mithileshwar
Marketing Management (Thirteenth Edition, 2009), Published by Dorling Kindersley(India) Pvt. Ltd.

2. Malhotra, Naresh K. and Dash, Satyabhusan Marketing Research (sixth Edition,

2009), Published by Dorling Kindersley (India) Pvt. Ltd.

3. Advertising hand book By Roger Barton

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4. Advertising By Frank Jefkins 5. Marketing management -By Philip Kotler 6.

SPSS for Beginners Vinod Gupta

OTHER SOURCES:
o o Internal sources of HCCBPL. Monthly circular for the month of March, Hindustan Coca-Cola Beverage Private Limited

DATA SOURCES:

http://www.cybernoon.com http://news.bbc.co.uk http://www.thecoca-colacompany.com http://www.coca-cola.com http://www.ko.com http://www.hoovers.com http://www.google.com http://www.wikipedia.org

www.cocacola.com www.indiainfoline.com www.economictimes.com

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