A PROJECT REPORT

ON

RED CONCEPT AND MARKET SHARE OF COCA COLA

SUBMITTED TO THE UNIVERSITY OF PUNE IN PARTIAL FULFILMENT 0F MASTER IN

MARKETING MANAGEMENT (2008-2010)

SUBMITTED BY UNDER THE GUIDANCE OF

(ANKUSH OSWAL) Prof. Nilesh Patil

SINHGAD INSTITUTE 0F BUSINESS ADMINISTRATION OF COMPUTER

APPLICATION LONAVALA

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 ACKNOWLEDGEMENT

Through this acknowledgement I want to express my sincere gratitude to Mr. J.S. BHATIA the
VICE PRESIDENT OF THE COMPANY for giving me an opportunity to work on this project
under his able guidance. He guided me a lot from time to time and without his motivation the
project was impossible

I am also thankful to Mr. BIKRAMJEET SINGH KANDHARI (MD) OF THE COMPANY for
his valuable help.

I would like to express my gratitude towards colleagues who had co-operated a lot while
preparing this project.

I express my heartiest thanks to Prof. Hansraj Thorat (Director) and

Prof. Nilesh Patil in providing me with right ambience of project.

(ANKUSH OSWAL)

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 Preface

Since the last few decade due to fast industrial development & high
competitiveness in the market the MARKETING plays very vital role in the
success of an organization Marketing is one of the live functions of an
organization .It is the only function of an organization earns revenue, which
leads to the survival& growth of the organization as a whole . It fulfills the
needs & wants of the society.

Marketing is no longer a company department charged with a limited

number of tasks it is a company- wide undertaking. It drives the company’s
vision, mission and strategic planning. Marketing includes decision like who
the company wants as its customers; which needs to satisfy; what products
and services to offer; what prices to set; what communication to send and
receive; what channels of distribution to use; and what partnership to
develop.

Selling is a part of marketing and this study is based on how KANDHARI

BEVERAGE PVT LTD” a franchise sales unit of COCA COLA , can increase its
sales .COCA COLA is mass producer of beverages and drinking water.

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 DECELARATION

I ANKUSH OSWAL declare that this project report titled “STUDY ON RED CONCEPT AND
MARKET SHARE OF COCA COLA COMPANY IN CHANDIGARH,PUNJAB,HARYANA
&HIMACHAL PRADESH ” is an original work done by me under the guidance of Mr. J.S. BHATIA
(VICE PRESIDENT). I further declare that it is my original work as a part of my academic course.

This report neither full nor in part has ever been submitted for award of any other degree of
either this university or any other university. Also no chapter of this manuscript in whole or in
part is lifted and incorporated in this report from any earlier work done by others.

(ANKUSH OSWAL)

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TABLE OF CONTENT

Chapter Page

Chapter 1 Introduction

1.1 Overview of a industry as a whole

1.2 profile of organization

1.4 Swot Analysis of the organization

Chapter 2 Research Methodology

2.1 Objective of the Project

2.2 Scope of the Study

2.3 Managerial usefulness of study

2.4 Methodology

2.5 Limitations
Chapter 3 Conceptual Discussions
Chapter 4 Data Analysis
Chapter 5 Findings

Chapter 6 Conclusions & suggestion

Appendix

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Bibliography

CHAPTER I
Introduction

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1-1 Overview of industry as a whole

HISTORY OF SOFT DRINKS

C oca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia,

who sold the syrup mixed with fountain water as a potion for mental and physical
disorders. The formula changed hands three more times before Asa D. Candler added
carbonation and by 2003, Coca-Cola was the world’s largest manufacturer, marketer, and
distributor of nonalcoholic beverage concentrates and syrups, with more than 400 widely
recognized beverage brands in its portfolio. With the bubbles making the difference, Coca-Cola
was registered as a trademark in 1887 and by 1895, was being sold in every state and territory in
the United States. In 1899, it franchised its bottling operations in the U.S., growing quickly to
reach 370 franchisees by 1910. Headquartered in Atlanta with divisions and local operations in
over 200 countries worldwide, Coca-Cola generated more than 70% of its income outside the
United States by 2003.

The first Coca-Cola recipe was invented in Covington, Georgia, by John Stith Pemberton,
originally as a coca wine called Pemberton's French Wine Coca in 1885. He may have been
inspired by the formidable success of European Angelo Mariani's coca wine, Vin Mariani.

In 1885, when Atlanta and Fulton County passed Prohibition legislation, Pemberton responded
by developing Coca-Cola, essentially a carbonated, non-alcoholic version of French Wine Cola
The beverage was named Coca-Cola because, originally, the stimulant mixed in the beverage
was coca leaves from South America. In addition, the drink was flavored using kola nuts, also
acting as the beverage's source of caffeine. The first serving in 1886 cost US$0.05. Pemberton
called for five ounces of coca leaf per gallon of syrup, a significant dose, whereas, in 1891,
Candler claimed his formula (altered extensively from Pemberton's original) contained only a

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tenth of this amount. Coca-Cola did once contain an estimated nine milligrams of cocaine per
glass, but in 1903 it was removed. After 1904, Coca-Cola started using,

Instead of fresh leaves, "spent" leaves - the leftovers of the cocaine-extraction process with
cocaine trace levels left over at a molecular level. It is speculated that the coca plant reduction
produced by Stepan Company's facility (in Maywood New Jersey) is used for Coca-Cola syrup
manufacture. In the United States, Stepan Company is only one manufacturing plant authorized
by the Federal Government to import and process the coca plant.

Coca-Cola was initially sold as a patent medicine for five cents a glass at soda fountains, which
were popular in the United States at the time thanks to a belief that carbonated water was good
for the health. Pemberton claimed Coca-Cola cured a myriad of diseases, including morphine
addiction, dyspepsia, neurasthenia, headache, and impotence. The first sales were made at
Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight months only nine
drinks were sold each day. Pemberton ran the first advertisement for the beverage on May 29 of
the same year in the Atlanta Journal.

By 1888, three versions of Coca-Cola — sold by three separate businesses — were on the
market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated
it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction
to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield,
A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son
Charley Pemberton began selling his own version of the product.

In an attempt to clarify the situation, John Pemberton declared that the name Coca-Cola
belonged to Charley, but the other two manufacturers could continue to use the formula. So, in
the summer of 1888, Candler sold his beverage under the names Yum Yum and

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 INDUSTRY PROFILE

1-2 Carbonated Soft Drinks

At the core of the beverage industry is the carbonated soft-drink category. The dominant players
in this area (Coca Cola, Pepsi, and Cadbury-Schweppes) own virtually all of the North American
market’s most widely distributed and best-known brands. They are dominant in world markets as
well. These companies’ products occupy large portions of any supermarket’s shelf space, often
covering more territory than real food categories like dairy products, meat, or produce.

As with many mature retail industries, the beverage giants have a problem – growth in the
sales of their flagship carbonated products are at a near standstill in the key U.S. market, with
1% growth or less. After years of rapid growth, it seems that the average American can’t
drink any more flavored, fizzy soda water. To remedy that, these three companies are rapidly
expanding both globally as they enter and promote new markets for existing products and
locally, as they add products from adjacent beverage categories in the supermarket, in
categories that are still expanding. We'll talk about these areas in a later posting.

The prototype of all marketing and branding struggles, the “Cola Wars” keep expanding. The
Pepsi and Coca Cola keep rolling out the big guns: dueling pop stars, and new branded products
in the form of “Vanilla Coke” and “Pepsi Blue.” . They are fighting on the TV, in the fast-food
restaurants, and in the supermarkets; they are also dueling in the schools. One of the biggest
pushes of the last few years has been convincing school districts, universities, and other
institutions to go all-Coke or all-Pepsi, in return for a (small) cut of the gross sales.

Selling costly sugared water and building an increasing demand for it, even in Third World
countries, involves marketing in its purest form, unsullied by any preexisting need or local

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tradition. Markets in Eastern Europe, China, India, and Mexico, among others, are expanding
fast, and both Coke and Pepsi are finding local partners (bottlers) in these countries to keep
extending their reach. And while the American market may be mature, there’s still an
opportunity worldwide to replace hot beverages like coffee and tea that require some preparation
with these cold, iconic.

All this worldwide activity can’t disguise an unpleasant core reality for the vendors: U.S.
carbonated soft drink sales increased only 0.5% in the year 2002. Although total sales for the
industry was up slightly, per capita consumption was down for the third year in a row In other
words, domestic soft drink growth is not keeping pace with population growth.

Overall soda market

In fact, Coke and Pepsi have a third major rival on the bottled soft drink shelves, namely
Cadbury-Schweppes. The big three carbonated beverage makers now exist in a stable oligopoly
those changes only by small increments and which controls over 90% of the market. Over the
years, Cadbury-Schweppes (the result of a merger between a British candy company and a
British beverage company) has improved its position by acquiring key brands in the US, namely
Dr. Pepper and Seven-Up, along with A & W and Canada Dry.

In past decades, the carbonated beverage section had been the beneficiary of an amazing record
of growth, where consumption has more than doubled over the past 25 years.
Americans consume twice as much soda as they did 25 years ago, up from 22 gallons per person
per year to over 56.

In 2000, these three companies had almost exactly the same share of the U.S. market they had in
1999, namely:

Company
Percentage Brands
Coca Cola 44.1% Coke, Sprite, Barq, Fanta, Mello Yello, etc.
PepsiCo 31.4% Pepsi, Mountain Dew, Mug, Slice, etc.

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 Cadbury/Schweppes 14.7% Seven-Up, Dr. Pepper, Schweppes, A & W,

While individual flavors go up and down, the relative market share of the big three changes at a
glacial rate. The next biggest North American soda company, the Canadian-based Cott Beverage
Company, had only a little over 3% of the market and that company specialize in supplying
private label soda to supermarkets and other chains.

In 2001, however, Cadbury acquired moribund RC Cola, giving it a cola drink to battle against
the big guys. This gave the company more shelf position and immediately gave the RC Cola
brand, long a distant also-ran with weak marketing muscles, more sales and market presence.
Pepsi gave itself a small boost because of the popularity of newly introduced Mountain Dew
Code Red, a hyper-caffeinated soda. Coke’s numbers declined slightly. The market share figures
in 2001.

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 1-3 COMPANY PROFILE

Headquarters: One Coca-Cola Plaza

Atlanta, GA 30313
Employees: 71,000
CEO: Neville Isdell
Stock Symbol: KO

Website: http://www.coca-cola.com/

Commitment
A Message from

Neville Isdell

(Chairman and CEO)

”When we talk about the future at The Coca-Cola Company, we talk about being the preferred
beverage company for consumers, the preferred employer in the labor market, the preferred
partner among our customers and a valued member of every community in which we operate.
These are our aspirations. While not entirely there yet, we are getting closer - thanks in large part
to our ability to leverage the skills and insights of our diverse global workforce.

The Coca-Cola Company operates in more than 200 countries, and on a global basis, we have the
most inclusive workforce in the world. Our greatest opportunity is to maximize this asset.
In 2005 we adopted our Manifesto for Growth, a vision for our Company. I believe diversity is a
great enabler of our fulfillment of this vision. I see diversity as a business imperative that will
help the company achieve sustainable growth and be the most respected company in the world.
Behind these programs are people at all levels of The Coca-Cola Company whose passion and
dedication continues to fuel our sustainable diversity effort.
I constantly remind my leadership team that we still have a long way to go. Our journey is long
because our aspiration is huge - to become the most respected company in the world. As CEO of
The Coca-Cola Company, I am committed to leading our organization in doing whatever it takes

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to ensure a successful diversity strategy. I know the commitment starts with me. I am
committed.”

Our Vision

We asked 150 of our top leaders to reimagine The Coca-Cola Company. The results have led us
to a holistic vision that we are working to accomplish over the next 10 years.

People

• We inspire to be a great workplace, where people are inspired to be the best they can be.
Profit

• We maximize return to our shareowners while being mindful of our overall

responsibilities.

Portfolio

• We bring the global marketplace beverage brands that anticipate and satisfy people's
desires and needs.
Partners

• We actively nurture a winning network of beverage and bottling partners, building

mutual loyalty.
Planet

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 • We act as a responsible global citizen, focused on our environmental efforts and making
a difference wherever we engage.

Mission, Vision & Values

Mission (Mission Statement)

The Coca-Cola Company's mission statement is:

`Remind Coca-Cola is the read thing' but their motto now has changed to `To benefit and
refresh everyone who is touched by our business’.

Also Coca-Cola would hope to provide the best quality drink for everyone, all the employees
working for them being at their top and fullest.

Everything we do is inspired by our enduring mission:

• To Refresh the World... in body, mind, and spirit.

• To Inspire Moments of Optimism...through our brands and our actions.
• To Create Value and Make a Difference... everywhere we engage.
Vision
To achieve sustainable growth; we have established a vision with clear goals.

• Profit: Maximizing return to shareowners while being mindful of our overall

responsibilities.
• People: Being a great place to work where people are inspired to be the best they can be.
• Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy
peoples’ desires and needs.
• Partners: Nurturing a winning network of partners and building mutual loyalty.
• Planet: Being a responsible global citizen that makes a difference.
Values

We are guided by shared values that we will live by as a company and as individuals.

• Leadership: "The courage to shape a better future"

• Passion: "Committed in heart and mind"

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 • Integrity: "Be real"
• Accountability: "If it is to be, it’s up to me"
• Collaboration: "Leverage collective genius"
• Innovation: "Seek, imagine, create, delight"
• Quality: "What we do, we do well"

Our Strategic Framework - The Four Cs

To advance our vision to be the most respected company in the world, we have established a
strategic framework with four powerful drivers:
Commitment - Demonstrate the importance of diversity as a marketplace and workplace
imperative, and engage and inspire our workforce around diversity.
Communication - Build employee awareness, understanding and support for the business case
for diversity.
Culture - Drive a diverse, inclusive and fair workplace, and establish TCCC as a destination for
great global talent.
Consumption - Drive diverse consumers to higher consumption rates against our core

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 Coca Cola in India

C oca-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
Exchange Regulation Act (FERA) which governed the operations of foreign companies in India.
After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal
that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network.
Coke’s acquisition of local popular Indian brands including Thums Up (the most trusted brand in
India), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling,
and distribution assets but also strong consumer preference. This combination of local and global
brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes
while also tapping into traditional domestic markets. Leading Indian brands joined the
Company's international family of brands, including Coca-

Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company
launched the Kinley water brand and in 2001, Shock energy drink and the powdered concentrate
Sunfill hit the market. From 1993 to 2003, Coca-Cola invested more than US$1 billion in India,
making it one of

the country’s top international investors. By 2003, Coca-Cola India had won the prestigious
Woodruf Cup from among 22 divisions of the Company based on three broad parameters of
volume, profitability, and quality. Coca-Cola India achieved 39% volume growth in 2002 while
the industry grew 23% nationally and the Company reached breakeven profitability in the region
for the first time. Encouraged by its 2002 performance, Coca-Cola India announced plans to
double its capacity at an investment of $125 million (Rs. 750 crore) between September 2002
and March 2003. Coca-Cola India produced its beverages with 7,000 local employees at its
twenty-seven wholly-owned bottling operations supplemented by seventeen franchisee-owned
bottling operations and a network of twenty-nine contract-packers to manufacture a range of
products for the company. The complete manufacturing process had a documented quality
control and assurance program including over 400 tests performed throughout the process. The
complexity of the consumer soft drink market demanded a distribution process to support

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700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay three wheelers,
and trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the
cities. In addition to its own employees, Coke indirectly created employment for another 125,000
Indians through its procurement, supply, and distribution networks. Sanjeev Gupta, President and
CEO of Coca-Cola India, joined Coke in 1997 as Vice President, Marketing and was
instrumental to the company’s success in developing a brand relevant to the Indian consumer and
in tapping India’s vast rural market potential. Following his marketing responsibilities, Gupta
served as Head of Operations for Company-owned bottling operations and then as Deputy
President. Seen as the driving force behind recent successful forays into packaged drinking
water, powdered drinks, and ready-to-serve tea and coffee, Gupta and his marketing prowess
were critical to the continued growth of the Company.

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 Coca- Cola Company in CHANDIGARH

This is the one of the biggest leading company in beverage sector in CHANDIGARH also. They
are producing several brands like Thumps up, Coca Cola, Sprite, Limca, Fanta, Mazza and they
have come with their new brand Minut Maid Pulpy Orange. Pulpy orange is the sixty year old
brand in China but for India it is new. Apart from this company also produces products like
Kinley soda & water.

Revenue

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 According to the 2005 Annual Report, the company sells beverage products in more than 312
countries or territories. The report further states that of the more than 90 billion beverage
servings of all types consumed worldwide every day, beverages bearing the trademarks owned
by or licensed to Coca-Cola account for approximately 4.5 billion. Of these, beverages bearing
the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the Company's total
gallon sales.

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

• 37% in the United States

• 43% in Mexico, Brazil, Japan and China
• 20% spread throughout the world

In 2007, revenues were $28.8 billion, a 20% increase from the previous year, and net income
was $5.9 billion. Unit volume increased 6%.

In 2007, the company said it will acquire Energy Brands, Inc., known as glacéau, and its full
range of fast-growing, enhanced water brands, including Vitamin Water for $4.1 billion.

Coca-Cola announced in September it is investing more than $60 million to build the world's
largest plastic-bottle-to-bottle recycling plant and support recycling in the U.S. These
investments are part of a comprehensive goal to recycle or reuse 100 percent of the Company's
plastic bottles in the U.S.

1-4 SWOT ANALYSIS

Strengths (S) Weaknesses (W)

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Has been operating successfully for over a century. Is known world-wide and operates in more than 200
countries.· Coca-Cola has a large share of the cola segment - holding approximately 85 per cent.· The
Coca-Cola Company is the most recognised trademark in the world. The contract The Coca-Cola
Company has with its bottlers is under constant negotiations.

Opportunities (O) Threats (T)

Have significant growth opportunities. Has sufficient capital to expand. Has the potential to innovate and
differentiate the company's products to sustain a competitive advantage. May merge with other global
businesses to eliminate competitors. Capable of expanding into other markets other than the soft drink
market. Has many major global competitors with its main one being PepsiCo. Coca-Cola can be
substituted by other soft drink products made by its competitors. These competitors may develop
marketing strategies to eliminate The Coca-Cola Company. There may be an economic downturn in the
business cycle.

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 Products and brands

The Coca-Cola Company offers nearly 400 brands in over 200 countries, besides its namesake
Coca-Cola beverage. This includes other varieties of Coca-Cola such as:

• Diet Coke (introduced in 1982), which uses aspartame, a synthetic phenylalanine-based

sweetener in place of sugar
• Diet Coke Caffeine-Free
• Cherry Coke (1985)
• Diet Cherry Coke (1986)
• Coke with Lemon (2001)
• Diet Coke with Lemon (2001)
• Vanilla Coke (2002)
• Diet Vanilla Coke (2002)
• Coca-Cola C2 (2004)
• Coke with Lime (2004)
• Diet Coke with Lime (2004)
• Diet Coke Sweetened with Splenda (2005)
• Coca-Cola Zero (2005)
• Coca-Cola Black Cherry Vanilla (2006)
• Diet Coca-Cola Black Cherry Vanilla (2006)
• Coca-Cola BlāK (2006)
• Diet Coke Plus (2007)
• Coca-Cola Orange (2007

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 BRANDS OF COCA-COLA

IN INDIA

In keeping with its goal of emerging as the single largest entity in the beverage market, Coca-Cola has a
presence in multiple segments.

• In the carbonated soft drinks (Coke, Diet Coke, Fanta, Thums Up, Sprite and Limca), fruit juice
based drinks (Maaza), powdered soft drinks (Sunfill) and coffee and tea (Georgia), bottled water
(Kinley) and bottled soda (Kinley Soda)

• Explores new markets with the introduction of new drinks (Georgia, coffee and tea segment) and
flavours (Vanilla Coke)

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23
 SLOGANS OF Coca Cola

India A: “Life ho to aisi”

“I ndia A,” the designation Coca-Cola gave to the market segment including metropolitan
areas and large towns, represented 4% of the country’s population. This segment sought
social bonding as a need and responded to aspirational messages, celebrating the benefits of their
increasing social and economic freedoms. “Life ho to aisi,” (life as it should be) was the
successful and relevant tagline found in Coca-Cola’s advertising to this audience.

India B: “Thanda Matlab Coca-Cola”

C oca-Cola India believed that the first brand to offer communication targeted to the smaller
towns would own the rural market and went after that objective with a comprehensive
strategy. “India B” included small towns and rural areas, comprising the other 96% of the
nation’s population. This segment’s primary need
was out-of-home thirst-quenching and the soft drink
category was undifferentiated in the minds of rural
consumers. Additionally, with an average Coke
costing Rs. 10 and an average day’s wages around
Rs. 100, Coke was perceived as a luxury that few
could afford. In an effort to make the price point of
Coke within reach of this high- potential
market, Coca-Cola launched the Accessibility Campaign, introducing a new 200ml bottle,
smaller than the traditional 300ml bottle found in urban markets, and concurrently cutting the
price to Rs. 7. This pricing strategy closed the gap between Coke and basic refreshments like
lemonade and tea, making soft drinks truly accessible for the first time. At the same time, Coke

24
invested in distribution infrastructure to effectively serve a disbursed population and doubled the
number of retail outlets in rural areas from 80,000 in 2001 to 160,000 in 2003, increasing market
penetration from 13 to 25%. Coke’s advertising and promotion strategy pulled the marketing
plan together using local language and idiomatic expressions. “Thanda,” meaning cool/cold is
also generic for cold beverages and gave “Thanda Matlab Coca-Cola” delicious multiple
meanings. Literally translated to “Coke means refreshment,” the phrase directly addressed both
the primary need of this segment for cold refreshment while at the same time positioning Coke as
a “Thanda” or generic cold beverage just like tea, lassi, or lemonade. As a result of the Thanda

campaign, Coca-Cola won Advertiser of the Year and Campaign of the Year in 2003.

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 CHAPTER II

Research Methodology

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2-1 Objectives of the study:-

The survey was conducted in different areas of the CHANDIGARH

city in keeping following objectives in view:

 To determine the market share of COCA-COLA Company for

allotted areas.

 To study the “RED CONCEPT” of COCA-COLA Company.

 To study the “Pre- Sale” Concept of Coca- Cola Company.

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2-2 Scope of the study:-

Scope of the study for Coca-cola by this study the company will come to
know:-

 Through this study company can know about its growth compared to its
major competitor PepsiCo.
 This study will also help to the company to know about their

new concepts position in the market

 This study will also help to the company to know about its

promotional activities involved in advertising.

 Through this study company will know about the availability of

its products in the market.

2-3 MANAGERIAL USEFULLNESS OF STUDY

 Help to get information about customer response.

 Help in getting information about loophole of supply chain management.
 Help to find out the problem of problem of retailers.
 Help to improve the sale of COCA COLA product.
 Try to remove communication gap between company and retailer.
 Help to tapping the potential market for the product .
 Help to giving proper response from the company side.

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  Help in improving the relationship between company and customer.
Significance of the study
Significance of the study is following

 This study is helpful to find out the sales trends of the Coke products and its
effect on consumers value and satisfaction.

 This study is helpful to find out how many outlets coming under RED concept
out of sample size.

 The project directly deals with interaction of different kinds of people. So

this project helps me to understand the corporate communication system.

 This study also helpful for the preference of the concept called “Pre-Sale”.

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2-4 METHDODLOGY
 Research problem
 Research design
 Source of data
 Data collection form
 Sampling design and sampling size
 Field survey
 Processing and Analysing the collected data
 Research Report
 Limitation

Research problem

Coca-cola is the Best Global Brands. It has more than 200 brands under one umbrella. Coca-cola
is well known company and its brands are very popular. When we started our training it becomes
an opportunity to ponder over its RED CONCEPT AND MARKET SHARE OF COCA COLA
in Chandigarh, Haryana,Punjab&Himachal pradesh. , effect of display at point of sale were
become our research problem.

Research design

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An exploratory design has been conducted to extract new insight into the problem. It was
conducted by means of survey of the consumers and retailers who were associated with beverage
product.

Source of data

The list of the retailers who sells coca-cola was collected from our area sales manager.
Consumers were contacted on the road, mall, house, and in colleges.

The data were all collected from primary sources through questionnaires. The questions were
both open and close-ended ones. It was basically used as a checklist for the interviewers. I had to
explain the basic content of the question at times in order to get the most appropriate answer
from the customer.

The questionnaire was designed to be an elaborate one keeping in mind the concepts of
consumer buying behavior and market segmentation in mind. The order of the question was
chosen to maintain an easy flow of information

Data collection form

We used field surveys to collect primary data. We used structured questionnaires prepared in
advance, to elicit the necessary information from the respondents.Our field survey was personal

Sampling design and sampling size

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For our survey we followed sample survey method. We took students mainly for our study
ofRED CONCEPT AND MARKET SHARE OF COCA COLA. And for marketing development we
tried to cover as many retailers as possible and according to data provided to us.

Sampling size

During our survey we took sample size of 60 for both consumers and retailers. It is very small
and can have low signification when we had taken all consumer as our sample frame.

Sampling design

For our survey we followed sample survey method. We took Retailer mainly for our study of
RED CONCEPT. And for marketing development we tried to cover as many retailers as possible
and according to data provided to us.

Field survey

During our survey we looked in to two important aspects –

• Interviewing- We surveyed according to the questionnaire we had prepared.

• The supervision of field work- We supervised retailers according to the requirement as a
market developer and also tried to match results we got from our questionnaire.

Processing and analysing the collected data

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In order to get meaningful result we used a number of tables and also used statistical tools for
such purposes.

Research Report

This is our main part of survey which we have dealt in detail in coming section of report. We
tabulated, interpreted and analysed the data and prepared the report embodying the findings of
the research study. We also included the recommendations.

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2-5 Limitation

1. The sample chosen is just a reflection of the Retailer of CHANDIGARH .

2. Due to short time period we have taken small sample size this implies lot of
error, but as we have limited our survey in one segment chance of error
decrease.

3. The way sampling is done is also very much dependent on me but I would
like to state that utmost care is taken so that the sample is the true reflection
of the whole market.

4. Our choices of retailers unfortunately were mostly red outlet retailers.

34
 CHAPTER III
Conceptual discussion
( Theoretical backdrop and literature Review

35
THE PRODUCT CONCEPT AND AFTER-SALES SERVICE

The product concept describes all products as being made up in more than one stage, or level:
Level 1: The core product
Level 2: The physical, or expected, product.
Level 3: The augmented product

The core product relates to the product's function in terms of the consumer need which it will
satisfy. A washing machine will provide clean clothes, or aid family hygiene.
The physical, or expected, product describes the actual shape, form and features provided by the
product. In considering washing machines, attention would be paid to such aspects as variety of
washing cycles available, colour options, size, ease of use and so on.

The augmented product relates to the (often intangible) features, which providers of goods and
services endeavor to incorporate into their products to make Them standout from the
competition. In the case of washing machines an automatic drain feature might have been part of
the augmented product twenty years ago. If it was perceived as an extra by the potential
customer it could help to differentiate the firm’s offering from the competition.

Of course automatic draining is taken for granted now, and has become part of the physical
product. The consumer expects and demands it as a feature.

Similarly, firms have built intangible qualities into the augmented product, which are now taken
for granted. One year guarantees have been superseded by three and five year guarantees.

36
 Company name and image plays a more important role as mass advertising can be used to
reinforce images of quality, strength and durability. Brand image is one of the most important
intangible features which can influence consumer buying decisions.

AFTER-SALES SERVICE AND BRAND CORPORATE IMAGE

After-sales service plays a crucial role in ensuring the long-term credibility of company and
brand image. When Perrier, the leading brand of bottled mineral water, suffered a contamination
scare, it was not solely their brand image which helped them to rebuild their market share very
quickly, it was the superbly efficient way in which they handled the incident, recalling the
product and arranging instant refunds. Their after-sales service in the face of an extreme crisis
(and in a potentially health-damaging situation) was seen to be concerned, responsible and
anxious to rectify the situation.
The brand lived up to its image as the leader on quality and satisfaction. It is even suggested that
the contamination crisis actually improved the firm's standing in the consumers' eyes.

THE IMPACT OF SERVICE PROBLEMS ON BUYER BEHAVIOUR

With growing interest in the area of quality and customer satisfaction, there has been an increase
in research into the impact of service problems on buyer behavior. The sort of findings which are
beginning to emerge illustrate clearly the importance of post-purchase customer satisfaction
levels. The figures given show the range of information coming from various sources and
illustrate the extent of the problem, even though actual sources differ and have been generalized
here Reports reveal evidence that the following factors 'and influences need to be considered:
� The average business never hears from the vast majority of its dissatisfied customers.
� For every complaint received, the average company has up to 26 customers with problems, 6 of
which are defined as serious by the client.

37
� Of those who register a complaint, over half will do business again with the organization to
whom they are complaining if the complaint is rectified.
� If the complaint is rectified quickly and professionally then 95% win do business again with that
vendor. In this event problems are, in this context, opportunities to demonstrate what a good
company the vendor really is
� The average customer who has had a problem with an organization will tell another 9 or 10, and
130/0 of people with problems will tell over 20 others about it. Bad news travels wide, far and
quickly.
� People who have complained and have had their complaint resolved quickly and professionally
will tell 5 others on average.

It is, therefore, easy to see that customer satisfaction in the product and in the service represents
a critical factor in the purchase decision. This implies that the service arm of any manufacturer
can play an important role in the future marketing success of not only its own operations but
those of all its channels of distribution.

Customers' perceptions of a company's image may owe more to the efficiency (or otherwise) of
the service department than to the quality of the actual product.

CUSTOMER SATISFACTION AND ITS ROLE IN THE BUYING PROCESS

Manufacturers, retailers and all types of marketing organizations are now involved in massive
campaigns to improve their quality of service and its profitability by ensuring customer
satisfaction. Looking after the customer is at least as important as looking after his equipment,
and this is borne out in surveys made both in the United States and in the United Kingdom. This
is equally important in business-to-business and industrial markets as it is in consumer markets.

38
 RED CONCEPT; -
What is RED?

● RED (Right Execution Daily) is a measurable tool to measure sales team and
distributors performance in the outlets with respect to all parameters of sales

– Cooler
– Brand Pack Availability
– Channel Activation

Why RED?

● With 50% Market Share, do we need to worry about Pepsi ?

● With very high availability, can we expand the distribution ?

● But do we have high availability of all Brand Packs ?

● New Brand Packs - do we have the space in Cooler and Outlet ?

39
Then, how do we get Growths?

● What is the real challenge?

– Impulse Consumption Home Consumption
– Space in the outlet

: Philosophy

Works with a long term vision of creating ‘Perfect Outlets’…

…create maximum impact with the consumers

…Ideal activation for every outlet

Norms:

• Cooler Purity means 100% purity

• Channel specific Cooler Standards .
• Channel specific Activation material
• Channel specific Brand Packs

40
 RED works on 3 categories

1) Type of Outlet (Channel)

a) Grocery – Home Consumption

Packs: PET and Mobile

b) Convenience – medium / Small outlets on main roads, bus stand etc.

Packs: RGB and Mobile Eating & Drinking – Restaurants, sweet shops, bakery etc
Packs: 300 ml & Mobile

2)Volume of Outlet

Annual VPO

• Diamond: > 800 cs

• Gold : 500-799 cs

41
 • Silver : 200-499 cs
• Bronze : < 200 cs

3) Consumer Profile

* High Income Area

* Middle Income Area

* Low Income Area

RED measures compliance to Picture of Success;-

1. Visi-cooler presence & condition.

2. Visi-cooler position, display & Brand Order Compliance
3. Availability Standards
4. Activation Elements
5. Price communication

Red is the survey method that company started earlier. For the survey of Red
Company had hired the person from AC Nielson one of the best survey company.
This survey gets done once in a month. Red is the set of norms divided into outlet
wise.

Right execution daily (RED) is the diversification of outlets as Channel, Class,

Income.

Let’s know what is the Channel, Class, and Income respectively.

42
CHANNEL - Which type of outlet is this like E&D (EATING AND DRINKING),
GROCERY, or CONVINIENCE?

E&D- Like restaurant must have 5 table with chairs.

GROCERY- Like general store.

CONVENIENCE- Like pan shop.

CLASS - Which class outlet has like SILVER, GOLD or DIAMOND?

SILVER-Those outlets which sells 200-499 carets per year.

GOLD- Those outlets which sells 500-799 carets per year.

DIAMOND- Those outlet which sells 800 & above carets per year.

INCOME - Whoever costumer comes on shop which income class they belongs
like high Income, medium Income, low Income.
43
 RED

(Right execution daily)

Outlet Wise Distribution of RED

Channel Class Locality Income Group

Convience Diamond High

> 800c/s sale

Ex->Pan shop, P.C.O etc.

Grocery Gold Medium

Ex-> General store, 500-799c/s sale

Provision sto
E&D (Eating and Drinking) Silver Low

200-499c/s sale

Ex->Restaurant, Hotel

Bronze <200c/s

44
 PRE- SALE CONCEPT

This is the new concept that had started from the year 2007. In the Pre- Sale the company takes order one day
before and accordingly company delivers their products for each route.

45
 Data Analysis

Survey Analysis

The survey was conducted in different location of Chandigarh, Punjab, Haryana& Himachal
Pradesh. A total survey of 60 distributors was conducted

1..Number of shared and exclusive outlets in Chandigarh city?

46
 Ex
127, 51% 123, 49%
Sh

Inference; - I had surveyed 60 outlets in Chandigarh, Punjab, Haryana& Himachal

Pradesh among those 51% are shared and 49% are exclusive outlets respectively. It indicates
that shared outlets are more than the exclusive outlets in those areas.

2.Market share of Coca- Cola Company comparing with PepsiCo for 2008
basing volume.

47
 Pepsi
29%

Coke Inference; - As
71%
with the help of
above pie chart I
can say that Coca-
Cola Company is
a leading company
or can be consider as market leader with 71% of market share with considering volume 2008
while PepsiCo is the market challenger with 29% of market share considering volume 2008.

48
3. Size of Visi- Cooler in 60 outlets.

Visi Cooler Size

2%
8% 1% 7%
20c/s
9c/s
7c/s
4c/s
2c/s
82%

Inference: - With the help of above chart it can be analyzed that the standard size of the visi-
cooler is 7c/s.

49
4.Type or number of visi- cooler in the outlets with their brand name.

79, 32%
Ko
Pc
124, 50%
Both
Other

36, 14%
11, 4%

Inference: - The above pie chart is showing the maximum percentage i.e. 50% outlets had
Coca-Cola company visi-cooler only while 4% outlets had Pepsi visi-cooler only and 14%
outlets had both companies visi-cooler and 32%outlets had other source.

50
5.Is Pre- selling good or there is some gap at the delivery time of the products?

50, 20%

200, 80%

Inference: - I collected 60 samples from 60 outlets from those I have found in 20% outlets
that Pre selling is not good while in 80% outlets the responded in favor of the Pre selling.
With that I can say that there are 20% outlets having some gap regarding delivery of the
products.

51
6.How much outlets had the visibility products?

250

200

150

100

50

0
Board Flenge Rack Table Top
Y 105 36 30 90
N 145 214 220 160

Inference: - With the help of above bar diagram I can give the following result i.e. 42%,
14.4%, 12% and 36% outlets had Board, Flenge, Rack and Table Top respectively while in
other hand 58%, 85.5%, 88% and 64% outlets had not the Board, Flenge, Rack and Table
Top respectively outlets where I had surveyed.

52
7.Ranking of the Soft Drink.

RANKING OF THE SOFT DRINKS

6000 4973
5000 4333
VALUE

4000 3185
3000 2250 2235 2304
1563 1851
2000
1000 436 357 448
0

W
P

A
E

LA
I

TA
E
P
S

IC
IT

ZZ
C
U
EP

IN

N
S

LI

PR

M
7

FA
P

IR

IN
P

LI
M

A-
M

S
M

TA
U

C
TH

O
N
U

C
O
M

PRODUCTS NAME

Inference:-From the illustration of ranking above it is relevant that in the Pepsi and Coca-Cola
there are 11 products. In these 11 products Thumps Up, Sprite, 7 Up Mazza

Miranda, Slice, Fanta, Pepsi, Limica, Mountain Dew and Coca-Cola are assigned 1 to 11
positions respectively.

53
8.Leading brand of the Coca- Cola Company according to their preferences.

Mazza
Fanta 8%
7%
Limca
6%

Sprite
14% Thums up
Coca Cola 63%
2%

Inference; - The above pie chart is showing some brand with their percentage regarding
their sale in the market like Thumps up(63%), Sprite(14%), Mazza(8%), Fanta(7%),
Limca(6%) and finally the Coca-Cola with 2%.Therefore I can say that Thums up is the
number one selling brand of the company compare to other brands.

54
10.Leading pack of the Coca- Cola Company according to their preference.

14%

1%
200ML
250ML
12%
300ML
600ML
5% 58%
1.2LTR
2LTR
10%

Inference; - From the above chart it is clear that the 200ML pack selling more with 58%, next
is 2ltr pack with 14%, same as with 12%(600ML) pack, with 10%(250ML)

pack, with 5 %( 300ML) pack and with 1 %( 1.2LTR) pack selling in the market respectively.

55
11.Category of the outlets means is the outlet Red or Non Red?

,Non Red, 85
34%

Red, 165, 66%

8.

Inference; - I had collected 60 samples from those I have found that 34% outlets are Non
Red while 66% outlets are Red.

56
12.Channel of the Coca- Cola Company considering surveyed (60) outlets.

Channel

E&D
5%

Grocery
29%

Conv
66%

Inference; - From the above pie chart it is clear that 66% outlet comes under Convince
category, 29% outlet comes under Grocery category and finally only 5% outlet comes under
the E&D(eating and drinking).

57
13.Outlets belong to which class made by the company?

Class

19, 8%

92, 37%
Diamond
83, 33%
Gold
Silver
Bronze

56, 22%

Inference; - With the help of the graph I can say that 92(37%), 83(33%), 56(22%) and
19(8%) outlets are Diamond, Gold, Silver and Bronze respectively.

58
14.Income group of the outlets.

income Group

78, 31%
High
Medium
134, 54%
Low

38, 15%

Inference; - After comprehending the above pie chart I can say that 54%
outlets belongs to the High class locality, 31% belongs to Low class locality
and 15% outlets belongs to the Medium class locality.

59
CHAPTER V

Findings

60
 Observation and Findings

1. The most popular flavor in Chandigarh, Punjab, Haryana& Himachal Pradesh market is
coca-cola.

2. Coca-Cola is market leader and Pepsi is the market challenger in the Chandigarh, Punjab,
Haryana& Himachal Pradesh market where I have surveyed.

3. From the Coca-Cola products Thumps Up and from the Pepsi products Dew is the highest
selling in the market.

4. Coca-Cola is the market leader in overall market.

5. In the case of the Minerals Aquafina (Pepsi products) is selling more than the Kinely(Coca-
Cola products) and newly launched Bonaqua because of competitiveness of price.

6. I have found that a retailer gives more preference to the Coca-Cola products like Thums up
and sprite etc. because of high demand.

7. In the case of the scheme Pepsi is providing better schemes than the Coca-Cola.

8. Sales have increased after locating visi cooler out side of outlet.

61
9. The company new concept Pre- Sale got the good response means the concept of Pre- Sale
prefers by the retailers.

10. I have also find that 80% outlets are ready to accept the concept called Pre- Sale or
responded well while in 20% outlets respond was low.

62
 CHAPTER VI

Conclusions & Suggestions

63
 SUGGESTIONS

I can give the following suggestion that can be implemented to increase the customer satisfaction
and the profitability of the company.

1. Supply distribution should improve in areas like in rural areas of Chandigarh, Punjab,
Haryana& Himachal Pradesh during summer.

2. The salesmen should be trained and to be Courteous with the retailer.

3. It should deepen the partnership arrangement with suppliers and distributors and make
them feel as a part of the company.

4. More emphasis should be given in retaining and building loyalty among retailers while at
the same time new retailers should be encouraged to sell COKE.

5. The company should work out on their complains regarding to visi cooler.

6. Company should give proper scheme to the outlets.

7. Overall services should be improved for getting more sales and to be the market leader.

64
 CONCLUSION

COCA COLA India . is one of the reputed companies amongst various cold drink Industry.
COCA COLA is having different product with its product line.

COCA COLA has acquired a big share of market in Chandigarh, Punjab, Haryana& Himachal
Pradesh because of its competitive pricing, distribution system and through good customer
relation.

Like in other industry COCA COLA is also having different competitors. In Chandigarh, Punjab,
Haryana& Himachal Pradesh COCA COLA is having only one competitor that is PEPSI CO.

COCA COLA doesn’t facilitate credit facility to its customer whereas customers have to provide
credit facilities to its consumer so as to increase his selling and to maintain relation.

Despite of all the strength and weakness it is also having some threats it is also having
Opportunity still to grow more and competitor with its competitor.

Over all Coca-cola is a very good company and one of the leading and growing companies in
Chandigarh, Punjab, Haryana& Himachal Pradesh.

65
 Appendix

QUESTIONNAIRE
1.Number of Shared and Exclusive outlets in Chandigarh, Punjab, Haryana&
Himachal Pradesh city ?
a. Exclusive (51%) b. Shared (49%)
2. Market share of coca-cola company comparing with pepsico for 2007
basing volume ?
a. coca-cola (71%) b. pepsico (29%)
3. Size of visi cooler in 100 outlets ?
a. 20 c/s b. 9c/s c. 7c/s d. 4c/s e. 2c/s
4. Is pre-selling good or there is some gap at the delivery time of the product?
a. 20 % b. 40% c. 60% d. 80%
5. Leading pack of the coca-cola company according to there preference ?
a. 2ooML b. 250 ML c. 300ML d. 600ML e. 1.2 LTR f. 2LTR
6. Category of the outlets means is the outlet RED or NON RED ?
a. 66% RED outlet b. 34% NON RED outlet
7. Channel of the coca-cola company considering surveyed (100 ) outlets?
a. convenient store b. Eating&Drinking c. Grocery
8.Leading brand of coca-cola company according to there preferences ?
a. Thums up b. Sprite c. Mazza D. Fanta e. LImca f. coca-cola
9.Income group of the outlets ?
a. High b. Medium c. Low
10. Outlets belongs to which class made by the company ?
a. Diamond b. Gold c. Silver d. Bronze

66
 Bibliography

Name of the books used for the reference and their authors.
• Marketing Management Analysis (12 edition) - Philip Kotler

• Research Methodology (Second revised edition) -Kothari C.R.

• Market Research - Sharma D.D.

Websites Referred

• www.pepsico.com

• www.wikipedia.com

• www.answer.com

• www.google.com

67