ON
TO STUDY THE RELEVANCE OF DIFFERENT
MARKETING STRATEGIE AND RED ON THE SALES
OF COCA COLA
Submitted In Partial Fulfilment of the Requirement of BBA (CA) Degree of
SESSION : (2012-13)
SUBMITTED TO :-
SUBMITTED BY:-
DHIRAJ KUMAR
B.B.A. (CA)
Reg. No.-104053090010
Study Centre-
DECLARATION
DECLARATION
I, Dhiraj Kumar Mishra, hereby declare that the information
presented in this report is correct to the best of my knowledge
and the analysis is as per the norms and guidelines provided for
the report. I have utilized the requisite concepts and applied the
required methodologies to analyze the primary data collected to
reach the conclusion present in the report.
ACKNOWLEDGEMENT
ACKNOWLEDGEMENT
It is indeed a moment of immense gratification for me to express
my deepest gratitude to the faculty of V.M.University for
providing me with an opportunity to undertake my summer
internship program from a world recognized beverage company
HINDUSTAN COCA COLA BEVERAGES PVT. LTD.
At the same time, I would also like to thank the companys
management for granting me the permission of being the part of
their esteem organization and enhance my knowledge by doing
summer training project under their guidance.
The learning during the project was immense & invaluable. It
was a challenging & enlightening association with the company,
which helped me to understand the reality of work place, made
me manage the personal life with work and also helped me to be
more prepared for other industry.
The following persons deserve special thanks for their support
during this process of learning:Mr. Ajay Singh
(HR Manager)
(Project Internal
Guide)
Mr. Surya Pratap
(Market Developer)
PREFACE
PREFACE
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. CocaCola was first introduced by John Syth Pemberton, a pharmacist,
in the year 1886 in Atlanta, Georgia.
The project topic basically talks about the Relevance of
different marketing strategies and RED on the sale of
Coca cola and understanding the retailers psyche. The present
report is an amalgamation of our thoughts and our efforts to
study the present marketing scenario.
Advanced statistical technology for measurement, analysis and
tests have been used in the preparation of the project. The
findings of the activity have been drawn out in form of graphs
and suggestions have been offered there from.
CONTENTS
CONTENTS
Introduction
Company Profile
Objectives
Research Methodology
Analysis
Findings
Conclusion
Limitation
Recommendation
Bibliography
Annexure
INTRODUCTION
10
(15 Marks)
14
marketer
and
distributor
of
no
-alcoholic
15
Coca - Cola returned to India in 1993 and over the past ten years
has captured the imagination of the nation, building strong
associations with cricket the thriving cinema
industry, music,
etc. Coca Cola has been very strongly associated with cricket
sponsoring
the
WORLD
CUP
in
1996
and
various
other
16
In 2003, Coke was available for just Rs. 5 across the country
and this pricing initiative together with improved distribution
ensured that all brands in the portfolio grew leaps and bounds.
Coca Cola has signed on various celebrities including
movie stars such as Karishma Kapoor, Crickters such as Srinath,
Sourav Ganguly, and Southern Cinemas Celebrities like Vijay in
17
18
COMPANY
PROFILE
Coca-Cola, the product that has given the world its best-known
taste, was invented by Doctor John Pemberton, a pharmacist
19
Company
is
the
worlds
leading
manufacturer,
distributors,
fountain
retailers
and
fountain
distribution
system,
consumers
in
more
than
200
21
Headquarter
22
Organisational
Structure
CHIEF EXECUTIVE
OFFICER
VICE PRESIDENT
SUPPLY CHAIN
HUMAN
RESOURCE
DIRECTOR
REGIONAL VICE
PRESIDENT
(NORTH)
CHIEF FINANCE
OFFICER
REGIONAL VICE
PRESIDENT
(CENTRAL)
VICE
PRESIDENT
BSG
23
AGM/AOD
UNIT 1
REGION VICE
PRESIDENT
AGM/AOD
UNIT 2
AGM/AOD
UNIT 3
AGM/AOD
UNIT 4
REGION
FINANCE
REGION
HUMAN
RESOURCE
REGION
CUSTOMER
SERVICE
REGION
EXTERNAL
AFFAIRS
REGION
COLD
DRINK
REGION LEGAL
REGION
BSG
REGION
DIRECTOR/
MANAGER
24
REGION
CAPABILITY
MANAGEMENT
REGION
CHANNEL
AGM/AOD
PLANT
MANAGER
HUMAN
RESOURCE
MANAGER
GENERAL
SALES
MANAGER
ROUTE TO
MARKET
AREA SALES
MANAGER
FINANCE
MANAGER
CHANNEL
MANAGER
SALES
TRAINERS
SALES
EXECUTIVE
MARKETING
MARKET
DEVELOPER
AREA
CAPABILITY
MANAGER
KEY
ACCOUNTS
DISTRIBUTER
25
AND
SALESMAN
Products
COCA COLA:
Coca-Cola has a truly remarkable heritage. From a humble
beginning in 1886, it is now the flagship brand of the largest
manufacturer, marketer and distributor of non- alcoholic
beverages in the world. In India, Coca-Cola was the leading
soft drink till 1977 when govt. policies necessitated its
departure. Coca-Cola made its return to the country in 1993
and made significant investments to ensure that the
beverage is available to
more and more people,
even in the remote and
inaccessible
parts
of
to
India
in
the
with
thriving
1996 and various other tournaments, including the CocaCola Cup in Sharjah in the late nineties. Coca-Colas
advertising campaigns Jo Chaho Ho Jaye and Life Ho
To Aisi were very popular and had entered the youths
vocabulary. In 2002, CocaCola launched the campaign Thanda Matlab Coca-Cola
which sky-rocketed the brand to make it Indias favorite softdrink brand. In 2003, Coke was available for just Rs.5 across
the country and this pricing initiative together with improved
distribution ensured that all brands in the portfolio grew
leaps
and
bounds.
Coca-Cola
had
signed
on
various
27
THUMS UP:
Strong cola Taste, Exciting Personality
Thums Up is a leading carbonated soft drink and most
trusted brand in India. Originally introduced in 1977, Thums
Up was acquired by The Coca-Cola Company in 1993. Thums
Up is known for its strong, fizzy taste and its confident,
mature and uniquely masculine attitude. This brand clearly
seeks to separate the man from the boys.
28
FANTA:
Internationally, Fanta The orange drink of The Coca-Cola
Company, is seen as one of the favorite drinks since 1940s.
29
LIMCA:
30
31
SPRITE:
their
thirst.
32
MAAZA:
Maaza was launched in 1976. Here was a drink that offered
the same real taste of fruit juices and was available
throughout the year. In 1993, Maaza was acquired by CocaCola India. Maaza currently dominates the fruit drink
category.
Over
the
years,
brand
Maaza
has
become
33
KINLEY:
Water a thirst quencher that refreshes, a life giving force
that washes all the toxins away. A ritual purifier that
cleanses, purifies, transforms. Water the most basic need of
life, the very sustenance of life, a celebration of life itself.
The
water
can
importance
of
never
be
understated.
Particularly
nation such as
governs
lives
the
of
part
in
a
the
millions, be it
as
everyday
rituals or as the
monsoon which
subcontinent.
Kinley
understands
34
of
water
the
MINUTE
MAID
PULPY
ORANGE(MMPO):
Minute
gas
maid
only
pupply
based
on
orange juice. It is a
35
non-aerated
soft
drink
and
market
Tropicana Twister.
36
competitor
of
37
Mission
Our Roadmap starts with our mission, which is enduring. It
declares our purpose as a company and serves as the
standard against which we weigh our actions and decisions.
38
39
Values
The values that the employees in the Company are expected to
keep up to and work by regularly are as follows:
Leadership: To take an initiative and lead, motivate and drive
the team with energy and zeal, to deliver outstanding results.
40
To
be
individually
and
transparently
Quality Policy
41
Competitors
42
43
44
BEVERAGES
Alcoholic
Non-Alcoholic
Carbonated
Non-Carbonated
Cola
Non-Cola
If the behavioral patterns of consumers in India are closely
noticed,
it
could
be
observed
that
consumers
perceive
45
46
The beverage
market
has
still
to
achieve
greater
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, 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,
47
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
48
Strategies
The company uses various marketing tactics to maintain the
demand of its products and regulate its sales so that it may be
able to face the tough competition and stand tall in this modern
dynamic world where the demands of the consumers changes
rapidly.
49
TV COMMERCIALS
OFFERS-
In addition to it, the company also gave a scheme with its product SPRITE
whereby the talk times were given to the people under the advertising logo
SPRITE KHOL, SEEDHA BOL. In this case, various codes were written below
the crowns and wrappers of the soft drink and those codes had to be sent
through a message on a specified number, thus increasing the talk time
balance of the consumer.
company
also
attaches
various
banners
and
51
EMPTY CRATS
The
company
also
makes
the
outside
their
shops
52
53
SHELVES AND STANDSRetailers are also provided with shelves and stands so that they
can display the bottles by putting them in those shelves and
stand. The retailers are, often, provided display money for such
sort of work.
54
DISTRIBUTING VEHICHLES55
56
GLOWSIGN BOARD
57
FINANCIALS
The passion and determination belonging to the women and
men of Coca-Cola helped it continue to grow during the worst
economic environment since World War II. Its intense focus on
growing its brands, gaining share, driving revenue growth and
leveraging productivity enabled it to meet its 2009 volume and
profit growth goals, in line with its long-term targets.
The company entered 2009 with a simple and clear purpose: to
confront the global economic uncertainty by focusing on what it
could control. It worked to ensure that it came out of this crisis in
an even stronger position by communicating with its consumers
and retail customers; investing in innovation; and enhancing its
distribution, sales and production capabilities around the world.
The following details gives a brief view about the financial
details of the company : As per the balance sheet drawn on Apr 3, 2009, the total assets
and liabilities of the company stood at $43,103 million.
58
Its
leadership
efforts
across
the
sustainability
spectrum,
60
SWOT ANANLYSIS
In todays modern world of cut throat competition, the company
must make the best possible use of its strengths, should
carefully analyze its weaknesses and try to remove it, must try
to find out the different available opportunities and must protect
itself from the threats that continuously posses danger to the
business of the company.
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
61
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 Coca-Cola 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 Coca-Cola
brand was worth $70.45billion.
Weaknesses
Low export levels: The brands produced by the company are
brands produced worldwide 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
Oppurtunities
Large domestic market: 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
64
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.
every
time
the
production
capacity
needs
to
be
67
OBJECTIVES
68
OBJECTIVES
69
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
70
71
ANALYSIS
72
73
Q.2:- Since how long are you selling the brands of the
coca cola company?
Table:2:SL.No.
Options
Respondents
16
1 year 3 year
39
3 year 5 year
35
10
Total
100
Chart:2:-
Interpretation: 16% of the total respondents are selling the brands of Coca Cola Company
from less than 1year.
39% of the respondents are selling the coca cola brands from between 1 to
3 years.
35% of them are selling it between 3 to 5 year & the rest 10% of the
respondents are selling the brands from more than 5 years.
Q.3:- The reasons for selling the brands of the coca cola company.
74
Table:3:SL.No.
Options
Respondents
High demand
83
High Margin of
profit
Good service
All of these
Total
100
Chart:3:-
Interpretation: The reason given by the respondents in accordance with the selling the
brands of coca cola is like that ,
83% of the total respondents think due to high demand ,
6% think that due to High margin of profit ,
Other 6% think that due to good service, & rest
5% think that all the reasons are equally important.
Table: 4:SL.No.
Options
Respondents
Yes
57
No
43
Total
100
Chart: 4:-
Interpretation: As per the response given by the respondents to this particular question ,
53% of the total respondents are satisfied with the different marketing
strategies which are adopted by the coca cola company & rest
47% of the respondents are not satisfied with the different marketing
strategies which are adopted by the company in accordance with its various
activities.
Table: 5:SL.No.
Options
Respondents
26
2
3
4
21
35
18
Total
100
Chart: 5;-
Interpretation: Visi coolers at the gate of the shop attract customers more as 35% of the
total respondents think so,&
26% think that glow sign board above the shop attract most than any other
means
21% have an opinion that putting carats outside the shop attract customers
most & rest
18% think that displaying the bottles on shelves is more appropriate means
of attracting the customers.
Table:6:SL.No.
Options
Respondents
Yes
73
No
19
Total
100
Chart:6:-
Q.7:- Are you satisfied with the size of visi cooler present in your
shop?
78
Table:7:SL.No.
Options
Respondents
Yes, it is
appropriate as per
my sales.
No, I am in need of
a bigger cooler
No, I have a bigger
visi cooler than my
requirement
48
2
3
Total
35
15
100
Chart:7:-
Interpretation: This particular question is based on the standard of visi cooler which is
present at the shop & retailers perception towards it
48% of the total respondents are satisfied with the size of visi cooler which
is present in their shop.
37% think that they are in need of a bigger visi cooler, and rest
15% think that they have a bigger visi cooler than their requirement.
Table: 8:SL.No.
Options
Respondents
2
3
4
Total
18
7
67
100
Chart: 8:-
80
Q.9:- The cold drinks of the coca cola you sell the most.
Table: 9:SL.No.
Options
2
3
Respondents
Total
100
Chart: 9:-
Interpretation: The results which are come out from this particular question is like that
58% of total respondents or shopkeepers think that cola drinks are more
sold from their shops
31% think that non cola drinks they sell most & rest
11% sell mostly juices from their shops.
Table:10:SL.No.
1
2
3
4
Options
1% - 10%
11% - 20%
21% - 30%
More than 30%
Respondents
27
43
19
11
No change
Total
100
Chart: 10:-
Interpretation: This particular question suggest that the increase in sales which is due to
the various promotional activities of the company & the responses are like
43% respondents think that their sales increased in between 11%-20%
27% think that it is in between 1%-10%
19% have an opinion that it is 21%-30% &
Sale of rest 11% respondents are increased by more than 30%
The results which are come out suggest that there is some increase in sales due to
promotional activities of the company.
Table:11:SL.No.
Options
Respondents
Price
19
Quantity
16
Quality
42
Brand availability
23
Total
100
Chart: 11:-
Interpretation: The most important negative factor for consumer with respect to cold
drinks as a whole is come out to be the quality of the cold drink
As 42% respondents think so
Another 23% think that non availability of their preferred brand
19% have an opinion regarding price & rest
16 % think that Quantity of the cold drink.
Table:12:SL.No.
Options
Respondents
21
2
3
4
Total
37
42
0
100
Chart:12:-
Interpretation: As per the responses given by the retailers most of them think i.e.42% that
prices should be moderate in future
37% have an opinion that quality should be improved & rest
21 % think that new flavors should be introduced in the market.
84
FINDINGS
FINDINGS
85
Most of the respondents are dealing their business in general stores and in
tea stall or sweet houses.
Maximum numbers of shopkeepers are selling coca cola products from
more than 1 year to 5 years.
Huge demand of coca cola products in the market is the main reason for
retailers which forces them to sell companies product.
57% of the total respondents or retailers are satisfied with the different
marketing strategies which are adopted by the coca cola company and in
the same case 43% retailers are not satisfied with the different marketing
strategies of the company.
Visi coolers which are present at the gate of the shop, attract customers
most towards consuming the products of the coca cola. As 35% of the total
respondents think so. Other Strategies like glow sign board, putting carats
outside the shop, displaying bottles on shelves are also good means for
attracting customers.
73% of the total respondents think that due to RED coca cola company is
managed to increase its sales and capture a large market share.
86
Most of the retailers i.e.48% are satisfied with the size of visi
coolers which are present in their shop. But in the same case 37% retailers
are unsatisfied, they need bigger visi cooler and 15% retailers told that they
have a bigger visi cooler than their requirement.
Promotions which are done by the company time to time for attracting
customers like reduction in price , attaching posters, banners ,buntings etc.,
giving prizes and gift coupons etc. are equally important as per the 67% of
the total respondents.
Cola drinks are more sell by the most of the retailers from their shop which
is comprises of thums up & coca cola as 61% think like that. In the same
case 32%think that they sell mostly non cola drinks like sprite, limca &
fanta. And 7% have an opinion that they sell mostly juices like maaza,
MMNF&MMPO.
Most of the retailers think that promotional activities of the company help
in increasing the sales of retailers. The results which are come out provide
a clear cut data regarding this.
Most of the retailers think that the main negative factor for consumer with
respect to cold drink as a whole is come out to be Quality of the cold drink.
Most of the retailers are in favor of moderate prices in future of cola and
non cola products.
87
CONCLUSION
CONCLUSION
88
89
LIMITATIONS
90
LIMITATIONS
TIME LIMIT There was acute shortage of time and as a
result of it only a smaller area could be covered.
CHILLER PROBLEM Problems regarding the visible
cooler are often solved untimely. Moreover, the retailer also
does not use the cooler to its utmost capacity.
HEALTH CONCIOUS APPROACH People have become
more health conscious and as a result of it the company
has to face tough competition with the other energy and
nutritious drink available in the market.
EXPLOITATION OF WATER The company is using excess
water, which proves to be a reason for the various domestic
organizations to protest against it.
INADEQUATE SUPPLY During summers, the company
finds it very difficult in meeting the demands. Often, the
retailers are supplied less stock than they demand.
SCHEME PROBLEM The schemes are not disclosed to all
the retailers on a particular route as a result of which there
is a sense of dissatisfaction among the retailers .
91
RECOMMENDATIONS
92
RECOMMENDATIONS
PRODUCTION OF UNSEASONAL PROUCTS
Company should produce unseasonal product like- snacks,
tea , coffee..etc. as in India there is no demand of cold
drink in winter season.
FOCUS ON RURAL MARKET The company needs to
focus on the rural market because of the saturation in the
urban market.
REGULAR SUPPLY The company should ensure the
regular supply of all the flavors and all the packaging on
time.
ADOPTION OF FLANK STRATEGY For higher market
share of the company, it must focus on the weaker
operational area of PEPSI.
VISIBLE COOLER (REFRIGERATOR) The visible cooler
should be provided at more of the outlets.
HEALTH DRINKS The company should soon come up
with some sort of health or nutritious drink so that it may
counter attack the competition given by TROPICANA and
REAL juices.
SOCIAL ISSUES The company must also take into
considerations the various social issues because the
population of India is emotional and is sensitive towards
such issues.
93
94
BIBLIOGRAPHY
95
BIBLIOGRAPHY
BOOKS :
96
ANNEXURE
97
Project
on
TO STUDY THE RELEVANCE OF THE DIFFERENT
MARKETING STRATEGIES AND RED ON THE SALES OF
THE COCA COLA.
Dear sir/madam,
I am conducting this project for the partial fulfillment of my
course M.B.A. from the M.P. Institute, Varanasi.
The information provided by you will be used for educational
purpose only.
Questionnaire
Q 1) Your basic nature business
A) General Merchant
C) Pan Shop
B) Tea Stall
D ) Restaurants.
Q 2) Since how long are you selling the brands of the Coca Cola company?
98
B) 1 Year 3 Years
C) 3 Years 5 Years
Q 3) The reasons for selling the brands of the Coca Cola company.
A) High Demand
C) Good Service
D) All of These.
Q 4) Are you satisfied with the marketing strategies adopted by the Coca Cola
Company?
A) Yes
B) No
Q 6) RED is an effective tool that has helped the Coca Cola Company to
increase its sales and capture a larger market share. Do You Agree?
A) Yes
B) No
Q 7) Are you satisfied with the size of the visi cooler present in your shop?
A) Yes, it is appropriate as per my sales.
cooler
99
D) All of these.
Q 9) The cold drinks of the Coca Cola you sell the most.
A) Cola Drinks (Thums up, Coca Cola)
B) Non Cola Drinks (Sprite, Limca, Fanta)
C) Juices (Maaza, MMPO, and MMNF).
B) 11% - 20%
C) 21% - 30%
Q11) What is the most important negative factor for consumer with respect to
Cold drink as a whole?
100
A) Price
B) Quantity
C) Quality
D) Brand Availability
Q12) As a consumer what are four expectations for future regarding various
cola and non cola products?
A) New flavors Should be launched
B) Quality should be
Improved
D) Other
101
102