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1. INTRODUCTION OF INDUSTRY
Glimpses on the Birth of Coca-Cola
John Smyth first introduced the refreshing taste of Coca Cola in Atlanta. It was
May of 1886 when the pharmacist caramel syrup in a three legged brass kettle in
his backyard. He first distributed the new product carrying Coca-Cola in a jug
down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a
glass of Coca-Cola at the Soda Fountain. Whether by design or accident
carbonated water was teamed with the new syrup producing a drink that was
proclaimed Delicious And Refreshing.
Dr. Pemberton partner and bookkeeper frank M Robinson, suggested the name
and panned Coca cola in the unique flowing script that is famous worldwide
today. Mr. Robinson thought the two C,S would look well in advertising.
By 1886, sales of Coca-Cola averaged nine drinks per day. That first year, Dr
Pemberton sold 25 Gallons of syrup, shipped in bright red wooden kegs. Red has
been a distinctive color associated with the No-1 soft drink brand ever since. For
his effort, Dr Pemberton grossed $5o and spent $73.96 on advertising.
In 1891, Atlanta entrepreneur, Asa G. Candler had acquired complete ownership
of the Coca-Cola business. With in four years, his merchandising flair helped
expand consumption of Coca-Cola every state and territory. In 1919 Coca Cola
Company was sold to group of inventors for $25 million. Robert W.Woodruff
became president of the Coca Cola in 1923, and his more then six decades of
leadership took the business to unrivalled heights of commercial success making
Coca Cola an institution the world over.
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Soft Drink Market In Present Scenario
The soft drink market all over the world has been witnessing a throat cut
battle between two major players: coca cola &Pepsi, since very beginning.
The thirst quenchers are trying hard to have the major piece of the apple of
overall carbonated soft drink market. Both the players are spending energies
in building capacity, infrastructure, promotional activities etc
Coca cola, being 11 years older than Pepsi, has been dominating the scene
in most of the soft drink market of world and enjoying the leader ship in terms
of the share. But the coca cola people are finding it hard to deep away Pepsi,
which has been narrowing the gaps regularly. The two are posing threats for
each other in every nook and corner of the world. While coca cola has been
earning most of the part of its red and butter through beverages sales but
Pepsi has a multi product port folio with a handsome portion from the same
business.The warriors are face to face once again here in India with different
strategies and tactics to attack the rival. Coca cola is focusing upon the joint
ventures with the exiting bottlers to enhance its control on manufacturing in
marketing of its products range and attain the equality standards of its class.
Countering it Pepsi has taken the battle in its own hands by floating as
investment of $95 billon to set Pepsi Co. India holdings as a subsidiary for
company owned bottling operations (COBOL). Both the companies are
following different path for reach the same destiny i.e. to fetch the bigger
portion of the aerated soft dink market in India.
Both the competitors have a distinct vision and properties about the Indian
soft drink market. though having so much difference and distances with each
other ,they both consider India a huge potential market ,as per capita
consumption here is a mere three serving annually against the world average
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of 80.therefore ,they are putting in their best effort to woe the India consumer
who has to work for 1.5 hour to buy a bottle soft drink in comparison to the
international norms of 5 minutes, a major hurdle to cross over for both the
athletes or getting no.1 position.
Coca cola is well with its 53 bottling sites throughout the country giving it an
edge over competition by processing a well built and distribution set up. On
the other hand , Pepsi, with 2 more years in India , has been able to set an
image of winner this time in India and get the pulse of India soft drink The
soft drink giants are Leaving on stone unturned and her for the Long terms.
Coca cola has been penetrating the market through its wide
product range with a determination to change consumption pattern of soft
drink in India. Firstly, they upgraded the whole industry by introducing 300 ml
bottles, which in turn had given the industry a booming growth of 20% as
compared to the earlier 5%. They want to develop a Coca culture and are
working on a strategy to offer soft drink in every possible package. In Coca
cola cap, the idea of competition has not come from Pepsi, but from the other
beverages such as Tea, Coffee, Nimbu Pani, and Water etc.
Pepsi is quite aggressive in its approach to Indian consumer. They are
desperately working on the strategy to be winners in the hot cola war between
two big banners. According to Pepsi philosophy, its the madness encourages
executive to think, to conjure up those creative tactics to knock the fizz out
there competition. Pepsi had plumbed a large on the visibility of its blue red
and white logo. They have been going with aggressive marketing by putting
Sachin Tendulker, Akshay Kumar, and now Shahrukh Khan in their
advertisement to endorse their brand, the role models for its targeted
consumer the teenagers. They have increased the fizz in the market place by
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introducing the dispensers called Fountain Pepsi and has been enjoying a
lead over its rival there.
Coca Cola on the other hand, has been working on the saying slow and
steady wins the race, side by side retailing to every more of its competitor.
They have produced the shield of Thums Up with a handsome Markey share
in Indian soft drink market. Countering Pepsis international commercial that
used two chimpanzees to cock a snoop at coke. Thums Up has been
positioned now very near to that young image of Pepsi and giving it a tuff
time.These cool merchants have put every thing on fire .if coke get the status
of the official drink of wills world cup, Pepsi blushed as nothing official about
it. as Thums up projected as sare jaha se accha, Pepsi was passionate
enough with freedom to be and now the yeh dil mange more. When Thums
up came with thunder blast
Factors Influencing The Soft Drink Industry
A soft drink is a mixture of concentrate sugar syrup and treated water .the
factor that affect the soft drink market and the soft drink industry has resulted
in the great competition are
(a) Impulse:
Soft drink business not governed by brand loyalty.So that emphasis is not
only on creating the market but also on retaining it.
(b) Availability Factor:
The availability of right brand in the right place, at the right time is main aim
for winning consumers in soft drink business.
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Bottlers purchased concentrate, at carbonated water and some time
sweetener, and deliver it to the customer accounts.
Retail channel refers to business location that sells or serves the products
directly to the consumers. Soft drink is not a product, which a person plans to
buy before hand, but it is an impulse purchased. Lots of sale depends upon
the strength of merchandising done at the point of sale.
It all begin in 1977, a change in government at the center led the exit of Coca
Cola which preferred to quit rather diluting its equity to 40% in compliance
with the foreign exchange management act (FEMA). The first national cola
drink to pop up was double seven. In the mean time, pure drinks, Delhi on
cokes exit, switched over to Campa-Cola.
The beginning of 1980 s saw birth of another cola drink thumbs Parle the gold
spot people launched it in 1978-79,AS REFRESHING Cola by the mid
eighties Mc Dowell and by the late eighties there was double cola, whichentered in India market (share 33%) with its gold spot and Limca brands.
Later Thums up also started thumbs up. At the same time threat to the India
soft drink was that of fruit drinks. In 1988, fruit drink market was valued at
rs.40 crore &grew at the rate 20%.
Coca Cola-cola entered India buying up to 69% of the 18000 crore soft drink
market (i.e. Parle expert brand of Thums ups, limca gold spot, Citra &
Mazza). Today the scene has changed making it a direct battle between two
giant Coca Cola-cola & Pepsi. The picture will become clearer by looking at
the Indian market shares in the beverages industry. One of the strongest
weapons in coke company armory it has the flexibility it has empowered its
people with .in coke every employee, may he be a manager or salesman,
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have an authority to take whatever steps he or she feels will make the
consumers aware of the brand and increase its consumption. Thus coke
believes in establishing and nurturing credibility of salesman & making
commitment to grow business in accounts all these factors led to a high
growth in the Indian market &constantly increasing market share.
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o Risk Diversification
o Innovation
o Satisfy the customer
Company Goals
Finally the company goals are:
To earn maximum profit.
To satisfy the consumers needs through better quality of
product.
To maintain quality of product Best distribution system.
To continuously increase their own share of percentage in
soft drinks.
HISTORY OF SOFT DRINKS
The history of soft drinks began with the end of the last century. Its history dates
back to civil war in 91 SA in 1960. At that time people were suffering from many
diseases. Problem at that time was how to cure all these disease, since no
remedy was present at that time. It was a big question for American people. So in
1885 Mr. John Paimwarlion who lives in Antonica made a drink and registered it
as TRENCH WINE COLA. In the beginning this drink was made with mixture of
cocaine and alcohol but later on it is
named as COCO-COLA. A new brand named PEPSI COLA in the year 1887.
Indian History
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Around 1948 the first branded soft drink in the Indian market. This soft drink
was named as Gold Spot. Before Coco-Cola entered the country to dominate
the scene in 1950, Parle Exports Pvt.Ltd. was the first Indian company to
introduce a lemon soft drink this drink was known as Limca and it was
introduced in 1970. However before this they had introduced Cola pepine
which was withdrawn in face of tough competition from coco-cola.
In the year 1977 Coca-Cola left Indian market and this brought in an
opportunity for various Indian companies to show their caliber. At this time a
new soft drink was introduced by Parle products and this was colour. This
drink was introduced with a mighty saying "happy days are here again". As if
happy days went away with
coco-cola. There was another company named pure drink, which introduced
the soft drink named Campa Cola along with arrange and lemon flavours.
Just after this many more companies entered the soft drink market. A soft
drink name double. I had been introduced by a company Morden bakers.
Another company Mohan meakins also came up with a Soft drink named
Mary & puch up, Mc Dowell came with thrill.,. Push and Sprint.
Previously there was no competition in the Indian soft drink market but with all
companies coming in the Indian market a huge competition was place with
college advertisements. But in the year 1988 Pepsi was given permission to
sell its soft drinks in the Indian market by the Government of Indian. CocaCola also come backin the year 1993.
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Coca-Cola in India
The coca-cola company entered India in early 1950, it setup four bottlingplants at
Bombay, Calcutta, Kanpur and Delhi.
In 1950, as were negligible companies in the Indian market therefore
Coca-Cola did not faced much competition and they were accepted in Indian
market more easily. The brand was accepted by all age group. The full credit
must go to coca-cola for making soft drinks popular in Indian by end of
1977.Coca-Cola had captured more
than 45% of market share in India Then Coca-Cola left Indian following public
regulations the company was required to Indianise or close operation come to
an end in July 1977
Coca-Cola come back in the year 1993 after liberalization and was launchedat Agra with the slogan "Old wave have come to Indian again". At the time
parle was the leader in the soft drink market and had more than 60% of the
total shore in soft drink. Coca-Cola joined hands with parle and to enter India
after 17 years. By striking a 40 million deal with Parle. Coke almost made a
clear sweep and made its good as " To become all time all occasion drink not
a special treat beverage."
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HISTORY OF COCA COLA COMPANY
In the year of 1990, over one hundred years after the soft drink was invented, the
Coca- Cola company opened up a museum like building which was designed to
be a tribute to its famous soft drink product. It is also said to be a tribute to the
countless number of consumers who drink Coca-Cola. The world of Coca-Cola,
as it is called is located in Atlanta, Georgia right amidst the tourist district. And, its
tribute to the soft drink is because it is so popular that it is now served daily in
nearly two hundred countries.
Having the museum located in Atlanta is fitting because long before anyone had
ever heard of Coca-Cola, a doctor by the name of Johan Stythe Pemberton, who
was a druggist in Atlanta, mixed up his own concoction of medicinal syrup in May
in the year of 1886, Dr. Pemberton used Africa.
Kola Nut extracts and coca leaves, which are both strong stimulants, in his
potion. The result was Q thick caramel colored syrup. The purpose of the potion
was to be an effective tonic which would help a person's brain and nerves
function better.
Dr. Pemberton's partner, a bookkeeper by the name of Fran M. Robinson, came
up with the name of Coca-Cola for the syrup from the names of its two basic
ingredients. Dr. Pemberton poured some of the Coca-Cola syrup into a jug and
took it to Jacobs Pharmacy in town. The pharmacy made Q fountain drink which
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mixed some of the Coca-Cola syrup with plain water. The drink was sold to
customers for a nickel a glass.True or not, it has been said that a customer came
into the pharmacy one day complaining or a headache. He asked for a glass of
Coca-Cola to be made with carbonated water instead of plain water and the
carbonated version of the soft drink was the born.The first year, in 1886,
Dr.Pemberton sold twenty five gallons of his syrup which earned him total
revenue of just fifty dollars. By the next year, because of h is poor health
condition, he began to sell of f his company. Five years later, man by the name of
Asa G.Candlar, had acquired total control of the Coca-Cola became a patented
product in the United States.Its popularly would not stay within the United States
for long, though, because in the year of 1906, Cola-Cola was bottled in Cuba and
in Panama. Bottling operations were soon start ed in Hawall the next year, then
in the Phillipines, France, Belgium, Bermunda, Colombia, the Honduras, Italy,
Mexico, Haiti, and Burma in later years. By the year of 1940, the famous soft
drink was bottled in forty country.
Advertising for the cola has included many product slogans including "The Pause
That Refreshes", which was used in 1929, "Have A Coke And A Smile", which
was used in 1979, and "Always Coca -Cola" which was used in 1993 when sales
from this soft drink exceeded ten billion cases worldwide. In brief the historycould be defined under following headings-
On May, 1886, Atlanta druggist Dr. John Styth Pemberton (former
confederate officer) invented "Coca-Cola" syrup using melted sugar, water
and other ingredients. It was marketed as a "brain and nerve tonic" in
drugstores. Sales averaged nine drinks per day.
Frank M. Robinson, Pembertons's bookkeeper, was he person who
suggested the name Coca-Cola" which was chosen because both words
actually named two ingredients found in the syrup. They were the coca leaf
and the Kola nut Robinson spelled Kola with a "C" to look better in
advertising.
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The first year's gross sales were $ 50 and advertising costs were $ 73.96.
The original formula included extracts of the African kola nut and coca
leaves, both strong stimulants. "Coca-Cola" was one of thousands of exotic
patent medicines sold in the 1800's that actually contained traces of cocaine.
One summer, in 1886, a customer walked into a drugstore complaining of
a headache and requested a bottle of "Coca-Cola" syrup. To get instant relief,
he asked the "soda jerk" to mix up a glass on the spot. Rather than walk to
the other end of the counter in order to mix it with cold tap water, the clerk
suggested using soda water. The man remarked it really tasted great, and
soon after "Coca Cola" was in fizzy, carbonated form.
"Coca-Cola" was first sold for 5$ a glass as a soda fountain drink, at
Jacob's Pharmacy in Atlanta, Georgia.
In 1888, Asa Griggs Canler bought the company from Dr.Pemberton. Later
that same year Dr. Pemberton died by 1914, Candler had acquired a fortune
of some $ 50 million. Baseball hall of farmer Ty Cobb, a Georgia native, was
another early investor in the company.
In 1891, Coca-Cola produced its first calendar.
In 1894. Joseph A Biedenharn, owner of the Biedenharn Candy company
in Vicksburg, Mississippi, first bottled "Coca-Cola".
By 1903, the use of cocaine was controversial and "Coca Cola" decided to
use only "spent coca leaves". It also stopped advertising "Coca-Cola" as a
cure for headaches and other ills. In 1919, after his death, Griggs Candler's
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family sold the interest in "Coca-Cola" to a group of businessmen led by
Earnest Woodruff for $ 25 million. Woodruff was appointed president of
"Coca-Cola" on April 28, 1923 and stayed on the job until 1955.
IMPORTANT LANDMARKS OF COMPANY
1876 Johan Stees Pberston discovered the formula of Coke,name given seven- X of its secret formula.
1882 Coca-cola company established in Atlanta.
1915 Alexgender Samulsus and Earl R.Peassia of "Indian RoutGlass Company designed the present bottle of Coke andalso it was the first patent bottle.
1950 Coca-Cola started the operation in India.
1977
Coca-cola closed operations in India.
1991 Coca-cola came back in India and opened Britco FoodsCompany.
1992 Coca-cola opened its first bottling plant in Pune.
1993 Coca-cola bought all the Parle Products Thumps up,Limca, Citra, Gold-spot, Maza at, $40 million.
1994 First time cokes introduce Coca -Cola in Agra.
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ORGANISATIONAL STRUCTURE
Managing Director
16
Production
Manager
Sales
Manager
Finance
Controller
Assistant Sales
ManagerABM ABM
Sales
Manager
Sales
Promoter
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AREA OF AMRIT BOTTLERS PVT. LTD.
A Amrit Bottlers Pvt. Ltd. has a management board . the managing director is
executive head of the organization. At present Mr. Naresh Ladhani Is the
Managing director ofABPL but overall policies regarding management decisionand all the executive function are looked and performed by Mr. R Ladhani, who is
well assisted advised by the Managing director for day to day decision and
general administration as well as management. The director looks after all
functional departments like sales,production,personnel, purchase and
administration. Every head of department reports Director and responsible for
their works.The plant head is the head of the production department too he looks
after production i.e.bottling process and storage of raw materials and
maintenance functions. AMRIT BOTTLERS PVT. LTD. Do marketing in all area
covered by them through Saket Sales and services Pvt. Ltd. and AMRIT
BOTTLERS PVT. LTD.The account department controls over all transactions
under it there is a chief accountantwho maintains accounts of the organization.
The purchase officer is the responsible for all purchases within the organization
and works according to the requisition raised by the different departments.
The sales manager is having charge of all type of marketing activities i.e. sales
advertisement, market study & shipping (storing of sold bottles as well as
loading and unloading of the vehicles ) but the main function of sales manager is
to control over distribution channel, sales Executive,city sales executive and
supervisor assisting theales manager.
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AREAS OF AMRIT BOTTELERS PVT.LTD. FAIZABAD
AKBARPUR GOPALGANJ
BAHRAICH GORAKHPUR
BANDA MAHARAJGANJ
BASTI PADRAUNA
DEORIA PRATAPGARH
FAIZABAD
SALEMPUR
FATEHPUR SIWAN
GONDA SIDDHARTH NAGAR
SULTANPUR
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INTRODUCTION OF THE BRAND
BRAND PROFILE
The company has six brand and all of them are manufacture at the AMRIT
BOTTLERS. Each of the brands has its own flavors and contents. Having many
profiles the customers vary the different segments of customer prefer different
flavors. The brands of Coca-Cola are named as following.
1) COKE
2) THUMS-UP
3) MAAZA
4) SPRITE
5) FANTA
6) LIMCA
7) KINLEY (M. Water)
8) COKE DIET
9) MINUTE MAID
These are bottled at "Amrit bottlers Pvt Ltd plant" near Faizabad and supplied inthe
Basti city by "SAKET SALES & SERVICES PVT.LTD.
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PRODUCT FEATURES OF COCA COLA & PEPSI
Product lines of Coke& Pepsi are as follows:-
FLAVOUR COKE BRAND PEPSI BRAND
Cola Coca-Cola
Thums-up
Coke diet
Pepsi
Pepsi diet
Orange Fanta Mirinda
Cloudy Lemon Limca Mirinda lime
Clear lime Sprite 7up
Mango Maaza Slice
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POPULAR PUNCHLINES OF COCA COLA PRODUCT
COCA-COLAThanda mutlab Coca-Cola.
Jo chahe ho jaye Coca-Cola enjoy
THUMS-UP
I want my thunder
Thums-up taste the thunder
FANTA
Kuch bhi ho sakta hai,
Masti ka apna taste
LIMCA
Take it easy.
Lime n' Lemoni Limca
MAAZABottle me aam maaza hai naam.
Yaari Dosti, Taaza Maaza
SPRITE
Dikhawe pe mat jao apni akal lagao.
Sprite bujhaye only pyaas, baki All bakwas
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DESCRIPTION OF THE PRODUCT
Coke
THANDA MATLAB COCA- COLA
JO CHAHE HO JAYE COCA-COLA ENJOY
PIYO SIR UTHA KE
APP MUSKURAYENGE BULBULE GUNGUNAYENGE
Coke is strongest brand among all other brands, being sweet in taste and is
world wide famous for its sweetness mixed with strongest.
Some time ago there were changes made in old formulas but it was not accepted
and company had to reintroduce the first one. At present in Basti City it is a cash
cow product of company.
It is available in
1. 200 ml bottle
2. 300 ml bottle
3. 500 ml bottle
4. 1 000ml bottle
5. 1.5 ltr.
6. 2 ltr.
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Thums up
I WANT MY THUNDER"
"THUMPS UP TASTE THE THUNDER"
Thumps-up the other very famous product of cola flavor is thumps-up basically it
is a PARLE product. But after the coca-cola took over Parle it is manufactured
under the grade mark of coke only.
It is also sweet in taste and strong in nature. Mostly preferred by young
generation people and teenagers. Being Indian it is more popular, especially
among males. It is famous as thunder drink.
In market it is available in different volumes.
1. 200ml bottle
2. 300ml bottle
3. 500ml bottle
4. 2000ml bottle
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Limca
JUST TAKE IT EASY
Limca --- Limca is considered to be lemony in taste and comes under the
category of cloudy lemon, because it's true color being similar that of clouds.
It is less strong and is found to be a substitute of the limewater and is preferred
as a light drink.
After the introduction of the "MIRINDA LIME" BY PEPSI it is now facing a
competition and step should be taken to promote its sale. It has a 15%- 18%
share in the market.
It is available in different volumes.
1. 200ml bottle
2. 300ml bottle
3. 500+100ml bottle
4. 2 ltr. Pet
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Fanta
KUCH BH1 HO SAKTA HAI
MASTI KA APNA TASTE
FANTA--- Fanta is popular orange flavored brand of Coca Cola and is preferred
by the children and women Because of its sweetness and orange flavours.
The color of the drink is also orange and is less strong than the cola flavours.
In the market it is available in.
1. 200ml bottle
2. 300ml bottle
3. 500+1 00ml bottle
4. 1.5 It pet
5. 2 It pet
It's main rival is PEPSI'S "MIRINDA" at present it has capture 10% of the totalshare of market being new product it still needs promotion and expansion.
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Sprite
"DHIKAWE PE MAT JAO
APNI AKHAL LAGAO
SPRITE-sprite is considered to be lime in taste and comes under the category
clear lime.Sprite the other very famous product of Coca Cola. It is also sweet in
taste and strong nature. Mostly preferred by young generation.
It is available in:
1. 200ml bottle
2. 300ml bottle
3. 500ml bottle
4. 1 It - bottle
5. 1.5 It bottle
6. 2 It bottle
Maaza
"BOTTLE ME AAM
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MAAZA HAI NAAM
MAAZA LAO AAM KI PYAS BUJHAO
MAAZA---- Maaza is a mango pulp containing drink among the different segment
of consumer. It is non accreted soft drink and is facing a tough competition from
juices like
1. 200ml bottle
2. 250ml bottle
3. 500+1 00ml bottle
4. 1 It bottle
5. 1.5 It bottle
6. 2 It bottle
KINLEY Vs AQUAFINA
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The water business is far bigger than carbonated soft drink. It is leaving no stone
unturned to scale up quickly tended to use a smaller size - 250ml to drive
penetration. But not only does it cannibalize the 300ml. Float, it also offer very
little margin at the current Rs. 10-12 pricing. But Coke's Kinley & Pepsi's
Aquafina have to contend with Ramesh chouhan's Bissleri. Which is discounting
heavily to build volumes in the low margin business say's Pepsi's Sinha- "We will
refrain from discounting in the water business" Kinley's on other hand is fighting
Bisleri tooth and nail.
The fight has all the making of a Cola war. As coke and Pepsi have shown, there
are no clear winner in such battle.
SALES & DISTRIBUTION
Sales are the cutting 'edge' of any business operation it is part of that company.
However big and small that meets the firms customers from home the business
is derived The people, who are engaged in this acclivity meet customers and get
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information about the product or services which are been sold and provide
feedback to the firm.
American Market association has defined sales management as "the blaming
direction and control of selling personal including recruiting, selecting, equipping,
assigning, routing super visioning, paying and motivating as these tasks apply to
personnel sales force".
In the other word "sales management is used by business to refer to the direction
or supervision of salesmen.
Objectives of Sales Management
Qualitative objectives:- ( Short Term)
To retain and capture market share.
To determine sales volume in ways that contributes to profitability.
To obtain the account of given type.
To keep personal expenses within specified limit.
To secure targeted percentage of certain account of business.
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Qualitative Objective: - (Long Term)
To do the entire selling job.
To service existing accounts.
To search and maintain customers cooperation.
To assist the dealer in selling the product line.
To provide technical advice wherever necessary.
To assist in training of middlemen's sales personnel.
To provide advice and assist the middlemen. To collect and report market
information of interest and use to the company management.
Sales Management Cycle
A sales management looks after and manages a firm's personal selling function.
Sales management deals with analysis Planning organizing direction and control
of the company's selling activities. Constitutes cycle shown below.
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Sales Management Cycle
Analysis
This involves probing into the sales records of the company analysis and reports
of sales people investigation of marketing trends and other environment factors.
Planning:-
It involves setting objectives of the firms sales efforts, formation of sale strategies
and policies in order to achieve those objectives.
Organization:-
It involves determination of the structure of the sales force and delegation of
authority which is supposed to be necessary to achieve the organization
objectives.
Direction: -
ControlOrganization
Organization
Planning
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It involves proper supervision and implementation of the plan with the help of the
proper communication, motivation and Leadership.
Control:-
It involves comparison of the actual with the desired results; find out reasons for
deviation and taking corrective action accordingly.
Distribution Network
A conceptual Approach:
Creating a customer and creating a product do not complete the process of
marketing, delivering the product to the customer is an equally important part of
this process. This is referred to as "Distribution" in marketing parlance. As
distribution affects a company's sales, finance and turnover. Therefore a brief
explanation regarding various aspect of distribution is required.
Definition:-
It can be defined as the process of reaching the product to the consumers. It
encompasses all the activities in the physical flow of products between producer
and consumer.
Importance:-
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Distribution provides place and time utility to products. In other words it makes
the product available at the right time and right places. It enhances company's
sale and its competitive position. Distribution also helps in the process of demand
generation. It helps in building up an effective cost reduction by judicious
management. It has to be dealt by keeping various factors. In soft drinks there is
an advantage that the shelf life of product is almost one year compared to other
where it is just one week or few months. Further it is a sector where producer has
to reach the consumer unlike others.
Components: -
Major component of the distribution network are as under:
Distribution planning
In plant water housing
Transportation
Field warehousing
Receiving
Handling
Inventory management
Order processing
Stock accounting
Communication
Accounting
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Designing the system: - It includes the following steps.
Find out what is desired by the customers.
Find out what the competitors do in this regard.
Find out the peculiar features and specific requirements.
Keep the cost system cost effective.
The system should be flexible.
While managing a distribution network there are three key
areas. They are as under:
1. Transportation
2. Warehousing
3. Inventory control
Transportation management involves decisions on:
How much to move
When to move
Where to move
Mode of movement
While designing a warehousing system, it is necessary to raise and answer the
following basic question relating to this flow.
1. How many warehouses should we have?
2. What should be the size or capacity of each of them?
3. Where should we locate them?
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Effective management of finished product inventory is quite essential for running
a business effectively and profitably. Inventory strategies and decisions become
particularly important in business where inventory costs form a sizeable part of
total marketing costs.
The following are the main issues involved in the management of finishing
product inventories:
1. Correct identification of the functions performed by the inventories .
2. Working out strategies for keeping the inventories at the optimum level.
3. Establishment of the right relationship between inventory functions and
inventory levels and they are by deciding the optimum level of inventory.
A Total System Approach to Distribution Is a Must
Through, we have seen that the different functions of distribution such as
transportation handling warehousing and inventory management. Interact
constantly with one another. As the functions are interdependent, the cost there
of are also closely interrelated Very often one function subsides another. For
example, if the firm is prepared to incur increased cost on transportation, it may
be in position to reduce its inventory cost. This is so because under such a
condition, the firm can use faster mode of transport and thereby reduce the level
of inventory in the field warehouses. And the converse is also equally true.
In the nature of things, the different functions of distribution need an integrated
handling
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This means that in the nature of things, none of the distribution functions can be
handled isolation. They have no separate identities. They need a high degree of
coordination and common direction. If the functions are scattered, in an arbitrary
manner among different departments of the company without common direction.
Control would get fragmented and effectiveness would be adversely affected.
In fact under such a situation, the very objectives of distribution get fragmented
and distorted. The different function would pull in different directions. The
transportation people would go all out to reduce the cost of transportation
unmindful of the effect of such a policy on other aspects; they would settle for
less reliable and slower modes of transport; they would also report to bulk
dispatches of the product to a few selected places instead of dispatching it to a
large number of demand centers at greater frequency and in convenient lots the
several locations with a view to maximizing customer services The inventory
control people opt for the diametrically opposite objective , viz , minimizing
inventories , whatever be the consequences ! In brief
When the different functions are viewed in isolation, the tendency will be to
reduce the cost of particular function unmindful of its consequences on the other
related functions
Individual functional costs are kept in focus, but the total cost of the distribution
function as a whole is forgotten. Cost reduction becomes ' the slogan for each
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function/department. Decisions are taken by each function in isolation, based on
alternatives available to particular function sometimes; it even leads to a "penny
wise, pound foolish practice. The ultimate result is that costs go up while the
level of service goes down.
Distribution Has To View As A Single Unified Task And A Single Integrated
System:
Because of the interrelations among the different functions and their costs, it
would be necessary and desirable to look at the distribution job as a single
unified system and optimize the efficiency of the distribution job as a whole. Such
a approach will result in better coordination among the various distribution
functions , remove the sub optimization in the system and enable the firm to
achieve its distribution objectives the case.
LINKAGE OF SALES & DISTRIBUTION WITH PERSONAL
EXPERIENCE & FINDINGS
Sales and distribution is a very important part activity of any firm distribution
selected to searches the god and services to the customer so as to increase the
proof it and sales of the company with out proper distribution the company does
not achieved the desired goal of maximum proof it
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As in my survey I found that there is a big problem of distribution so that the
company lost the sales of some major out lets like cinema hall and mess so it is
very necessary that company should considered on its distribution chance. I
found that the distribution is very defective and not regular so that the retailers
switch over the other brands like Pepsi, because they provide regular and quick
supply to the retailers because of their good and effective distribution system. It
is necessary that you have proper number of transportation vehicle and
warehousing Communication so.
Company must have proper number of trucks, warehouse, and effective
communication with the distributors so that they supply the consumer's goods in
tune without gap.
SCENARIO OF SOFT DRINK IN INDIA
Preference Product
The history of Indian soft drink market is dated around 1948 'when the first brand
named as Gold Spot was introduced in Indian market. This opened the doors for
other soft drinks and Coca-Cola entered the market in 1950's with its brand coke.
Then came the Indian companies in which the main was PARLE Pvt. Ltd. It was
the first Indian company to introduce a lemon soft drink. In 1970's in competition
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to the coke they launched a brand named Cola Pepino but it failed due to a tough
competition from coke and had to be withdrawn from the market.
Indian Government was also putting its efforts to introduce its own local drink to
become self reliant , But in early 70's disputes started between Indian
Government and Coca-Cola was to asked quit and the Indian Government
launched its own drink at the Agri Expro 77 in New Delhi as 'Double 7' with the
help of Morden Bakers.
After coke left Indian Parle had no much in the market it introduced a new
competitor left soft drink named THUMPS UP. This was Q substitute for Coca-
Cola in the market with similar taste and colour. This drink took the place of Coca
cola and very soon became very popular and one of the prominent share holder.
There were other companies also which entered the market in which Pure Drinks
launched Campa Cola along with orange and lemon flavours Mohan Makings
came with Mary and pickup and the McDowell introduced thrill. Rucsh and Sprint
later Parle became the leader in the soft drinks but after the introduction of Pepsi
in 1988 the competition started and with the return of Coca-Cola in 1993 it has
gained up due to modernization of society the market an 'the competition both
increased and is giving a way to more and more improvement today Indian soft
drink industry is well established and having a growth rate of 20% per year. The
total market estimated for the year 97-98 is of Rs.1800 crores.
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With improved economy bottles have to be popelled into expanding capacity with
their bit time plans. With increasing demand the volume production is supposed
to reach 1 million cases with ten years. To reach this target the Cola market will
have to build capacity infrastructure and the bottles more easily available and
more affordable.
The Indian Coca Cola history date back 48 years ago i.e. the Coca Cola entered
the early 1950's in Indian market and set their four plants of bottling at Bombay
Calcutta Kanpur and Delhi. At that time there was negligible competition in Indian
market and Coca cola soon captured the Indian market, it would not be wrong if
the credit of popularizing the cold drink culture is too given to Coca Cola. This
brand was soon accepted by all the segments and all age groups becoming a
popular thirst quencher.
But in early 1970's when Coca Cola market was high ( 45% to 50% ] in India and
their were not Things started changing in 1977 when the Janta Party come to
power for George Fernamdez the Coke controversy was an ideal issue to derive
political mileage. It request Coca-Cola's competitor Parle for help to bottle new
product. The product trails in parliament were successful and the political
pressure to throw out Coca Cola gathered momentum. Coke was finally asked to
quit in 1977 in spit of world wide reputation of being a unique secret formulation.
With the opening of economy in 1991 the MNC's once again started acting in the
giant Indian market with this coca cola also entered in 1993. It was launched at
'Agra' with the oldwave coming to Indian again. At this time parle was leader in
soft drink market and more than 60% of the total shareholder of soft drink
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industry. Coca Cola joined hands with Parle to reenter with its full strength after
17 years.
By striking a $ 40 million deal with Parle, Coke almost made a clear sweep over
the market to compete with the other MNC giant Pepsi Cola which was already in
the market at that time. The aim of the Coke was to become an all time all
occasion drink and not a special occasion beverage.
This time the competition faced is tough for the company because it has the
American
giant Pepsi as main competitor but other companies like Cadbury Schwepper arealso
there.
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SERVICES
The Coca-Cola Company in Indian supports eight Jagriti (Awakening) Learning
Centers (JLC); managed by India's well-known organizations, such as CRY,
Pratham, Prayas and Literacy India. The program provides education at the
primary level to underprivileged children, as well as computers training for
teachers. Over 1,800 students per year have benefit from the program.
Working with state and district governments our company provides support to
primary health centers in areas where our bottlers are located.
In 2002, in partnership with the St. John's Ambulance Brigade (Associate of Red
Cross ), we conducted health camps for those who live in poverty-stricken urban
areas to sensitize the community on pertinent issues such as HIV/AIDS ,
communicable diseases, immunization, hygiene and sanitation and reproduction
and child health. Free health check-ups and medicine were provided, with over
10,000 people benefiting from the campaign.
The company supports rainwater- harvesting project as part of a major
government initiative to combat water scarcity and reduce ground water tables
across the country. We are analyzing options for rainwater harvesting at our
major bottling plants. Along with the Resident Welfare Association of Greater
Kailash, our company installed four rainwater harvesters. The Chief Minister of
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RESEARCH METHODOLOGY
3.1Title of the Study:
Coca cola is mainly related with beverage industry so, they deal with soft
drink in all over the world .The title for the study is market survey of coca cola
in competitive situation.
3.2 Duration of The Study:
The duration of the project training was 45 days undertaken to
accomplish the title and objective.
3.3 Objective of study
1. To access the market share of coca-cola vis-a-vise pepsi cola Gandhi Nagar,
Purani Basti, Bardahiya Bazar, Ganeshpur, Kachehri Market, Bade ban .
2. To study future plans and changes
3. To arrives at strategies to dominate the market during 2009.
4. To identify other outlets.
5. To find out current status of Sales Generating Assets (S.G.A).
6. To conclude and suggest the company's measures and means to increase its
share in sales and upgrade its overall performance thus to improve corporate
image.
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3.4 Type Of Research
1. DESCRIPTIVE RESEARCH: -It includes surveys and fact-finding
enquiries of different kinds. The main purpose of descriptive research
is description of the state of affairs, as it exists at present.
2. ANALYTICAL RESEARCH: -Analytical research has to use facts
or information already available and analyze these to make a critical
evaluation of the material.
LITERATURE SURVEY
Prior to the field works, it was deemed important to study books on research,
sales and distribution and about the coke and Pepsi. The fierce battle in between
two was also an interesting feature of my study.
3.5 Research Design
Descriptive and exploratory research design has been used in this
project. Descriptive research has been done by collecting information from
different outlet such stocks; chilling equipment etc. Exploratory research has
been done to work out various problems faced by retailers and other outlets
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3.6 Sample Design
The sampling unit of the research has been kept as retail outlets engaged in sale
of softdrink.The survey in areas of Gandhi Nagar, Purani Basti, Dakshin darwaza
Ganeshpur, Kachehri Market, Bade ban, conducted by the under signed. I had
tried to collect relevant data from all outlets in big area found operating at the
time of survey. In total data from 300 outlets have been collected and analysed.
3.7 Scope of study
The scope for the study is very wide as I covered all
departments profit for one year in all the field which is related with my study .I
covered all the expenses of the industry and the find profit from that data which
required a wide range of data and material from the market.
3.8 LIMITATIONS OF STUDY
It is well known fact that constraints and limitations are bound to be present in
any study do this also has some limitation as:
The survey has been conducted only in few areas of Basti due to limited
time.
It is very difficult to make the people understand the significance of
conducting survey.
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Some retailers or dealers did not want to say the actual sale of soft drinks
from the counter.
Due to shortage of monitory resources the project report does not reach to
its
perfection.
We have conducted the survey only for 200ml. And 300ml. Glass bottles
so it is difficult to find out the actual demand of Coke.
The respondent may be biased or influenced by some other factor.
Lack of retailers interest to answer the questions is also an important
limitation.
Information is collected only from retailers.
The entry and exit of new/old outlets can increase or decrease market
share.
Data collection
Data for the project have been collected from its primary sources. Filling of
questionnaire has been made item of data collection. personal interview method
has also been used for the same.
Field work
All 300 outlets from where data was collected have been personally visited by me
f or survey. Questionnaire has been filled in f or each outlet.
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FACT & FINDINGS
1. The Coca-Cola holds no. 1. position in the market with its mother brand.
2. Its brand Sprite too holds a good grip over the market in comparison to main
competitors of Dew.
3. Thums-Up is having major market share as compared to Pepsi.
4 People have tendency to switch over on other brand and because of duopoly
(only two players are available in the market Pepsi and Coke) the competition
is very direct.
6. The number of Coke S.G.A'S is more Pepsi in terms of area and outlet.
7. The demand of coke is high in comparison to Pepsi but because of shortage of
Coke S.G.A's and poor distribution the retailers prefer to sell Pepsi.
8. Total sale of Coke is more than pepsi.
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PERCENTAGE OF COCA COLA IN SPECIFIED OUTLETS
The total outlet share of coke in these specific areas is 51.893 %
Graphical representation of share of coca-cola in specifiedoutlets
P.C.O 20 %
Tea Stall 60%
Groceries 65 %
Restaurant 60 %
Others 20 %
Outlet Total Share % of Coca-Cola
PAN SHOP 1390 20
RESTAURANT 1110 60
P.C.O 865 20
TEA STALL 1920 60
GROCERIES 9585 65
OTHERS 3320 20
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P.C.O
Tea Stall
Groceries
Restaurant
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AREAWISE SHARE OF COKE AND PEPSI
Gandhi Nagar
The percentage share of Coca Cola and Pepsi are 80.99 and 19.00
PEPSI
COKE
BARDAHIYA
The percentage share of Coca Cola and Pepsi are 92.3 & 7.6 respectively
PEPSI
COKE
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PURANI BASTI
The percentage share of Coca Cola and Pepsi are 80 & 20 respectively
PEPSI
COKE
KACHEHRI & COMPANY BAGH
The percentage share of Coca Cola and Pepsi are 48.10 & 51.89respectively
PEPSICOKE
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DAKSHIN DARWAZA
The percentage share of Coca Cola and Pepsi 72.60 & 27.40 respectively
PEPSI
COKE
BADE BAN
The percentage share of Coca Cola and Pepsi 69.54 & 30.45 respectively
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PEPSI
COKE
GANESH PUR
The percentage share of Coca Cola and Pepsi 66.66 & 33.34 respectively
PEPSI
COKE
ANALYSIS & INTERPRETATION
Analysis
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Interpretation
Interpretation drawn from the diagram states that in nearly all the areas that
includes Gandhi Nagar, Purani Basti, Bardahiya Bazar, Ganeshpur, Kachehri
Market, Bade ban the Sale of Coca Cola is increasing in almost every sort of
outlet
Sale of coke and Pepsi in allotted area:
Total % of sale of Coke is 74.72% where as total % of Pepsi is 25.28.
SWOT ANALYSIS
The overall evaluation of a companys Strength, Weakness, Opportunities and
Threats is called SWOT Analysis.
The SWOT Analysis is further divided into two parts :-
Internal environment analysis
External environment analysis
Internal environment analysis (analysis of strength and
weakness)
It is one thing to discern attractive opportunities and another to be able to
take advantage of these opportunities. Each business unit needs to evaluate its
internal strength and weakness.
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As the research is conducted following strength and weakness of the
Coke Company is found.
Strengths
Good company image.
Well trained and experience workers and executives are available.
Strong distribution network.
Brand 'Thums-Up' alone cover the big market. Adopted two types of
distribution channels (Direct route and indirect route).
Effective sales promotion schemes and commission to salesman on
achieving target.
Effective executive team.
Weaknesses
Less personal contacts with retailers.
Service is not good.
Company officials do not visits outlets regularly.
Less advertisements Channels.
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Bad and delay in claim settlement.
No proper maintenance of asset as like visi-coolers, dealer board, glow
sign, etc.
Less availability of dealer board, glow signboard, painting etc.
Opportunities
High growth rate for fruit drink market.
Basti city has a great population of youths in U.P.
Basti city has good market share of Slice in India.
Therefore there is a need only of marinating this share in future.
Targeting the upper middle class for home take segment.
Threats
High growth of competitor's products.
Better facilities provided by the competitor to their distribution this might
lead to switch over to slice distribution towards competitors.
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Indifference among distributor and fat dealers.
Different effective promotion schemes of competitors.
CONCLUSION
The summer training project was focused on "A Market Survey of Coca Cola in
the Competitive Situation". After Retail audit of 300 outlets through schedule,
following conditions have been drawn:
1. Coca Cola company lead the market of soft drinks with 74.72% market
share giving coke a margin of 13%.
2. Of the total segments of outlets covered, availability of Coca Cola's range
was highest in provision stores.
Besides these, other conclusion based upon interaction with retailers& personal
observations are as below:
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A) The distribution of company is very irregular.
B) Necessary requirements like S.G.A. openers, required flavours like Fanta
are not provided to each and every outlet.
C) No provision for the regular replacement of damaged bottles.
D). Company doesn't provide sinage to the small outlets.
E). The number of wall paintings is very less in comparison to Pepsi.
F). Company do not provide discount to each & every outlet.
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SUGGESTIONS & RECOMMENDATIONS
Although it is very early to suggest any thing to such a internationally renounced
company like Coca-Cola having in the mature stat e of marketing yet for the local
market, client distributors & retailers, based on the interactions & feed backs from
various outlets, segments of customers I would like to suggest as under:
1. Distributor should not be changed frequently because retailers deal with
distributor only and its not easy for a new distributor to maintain goodrelationship with each established old retailer.
2. Distributors should give importance to every outlet irrespective of their status
whether big or small. In this regard they may be trained suitably.
3. Distributors should disclose schemes provided By the Company to each and
every outlet without discretions.
4. Distributors should replace the defective goods or damaged bottles
immediately without any calling for explanations.
5. Distributors should provide required flavours to the retailers to increase their
sales.
6. Distributors should give gifts prizes to the shopkeepers provided by the
openers, wall clocks, sinages etc.
7. Distributors should give gifts &Prizes to the shopkeepers provided by the
company like openers, wall clocks, sinages etc.
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8. If distributors make any kind of promise to the shopkeeper to purchase certain
in quantity under any scheme or 'on discount they must fulfill it as it affects
company's goodwill.
9. There must be proper replacement of old and expired stock and empty bottles.
10. There should be nice gift items for the retailers showing the limit crate sale
(limit as decided by company) at the end of the season. This could develop a
competitive feelings amongst the retailers and hence more sales.
11. At least a small Hoarding or sinage should be provided to each and every
outlet of coke.
12. At least one attractive glow sign board/hoarding should be displaced in main
area of the market where a chunk of shop is there.
13. Company should promote good and heart felt Slogans and Jingles.
14. Company should provide others small advertising items in the form of
garlands, hangers recto the shopkeepers as there are cheap and good source
of advertising.
15. Company should sponsor important event like World cup, Asian & other
tournament, any event related to film awards and programmers of local
importance.
16. Company, If possible should give schemes to the customers through
newspapers having provision for discounts in purchasing its products.
17. Company should organizing campaigns & distributes caps, Key rings,
glasses, serving tray, on which company packages are branded.
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18. Chilling equipments should provide on a cost basis.
19. Chilling equipments (like family freeze, vizzi or Electric bottle cooler) should
be provided to the outlets
20. If there is any default found in the chilling equipment provided by the
company should be repaired quickly when so required.
21. Company should ensure good supply of stock.
22. Company should go for more monopoly counters.
23. Company should give discount with every crate as is being done by Pepsi.
24. There should be surprise check by the company to endure whether benefits
of schemes provided by the company reach outlets or not and take corrective
measures in case of default.
25. Company should arrange seminars and meetings with dealers on an ongoing
basis on monthly interval.
26. Shopkeeper feedback should be taken in regular manner.
27. A special shopkeepers care cell should be formed to listen the shopkeepers
grievance on the lines of customer care cell.
28. No. of hoardings should be increased.
29. Flexibility in the allot of monopoly items should be encouraged.
30. Some free gifts should also be given on established Brands to stimulance the
retailer.
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31.Company should elaborate public announcement on important days like
Health day, Anti drug day world aids day etc.
32. Company should tap colleges and school canteens. They should be given
extra discounts as these outlets give potential long run customers to the
company.
33. Company should provide Tables, Chairs wall clocks, stands, openers to the
retailers as for them type of free gifts are significant and they promote those
company's products who provide such items to them.
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Appendix
QUESTIONNAIRE
Market Survey(Through Questionnaire)
Name Of outlet: _________________________________________________
address of outlet : _________________________________________________
Contact No.:
1. Do you keep soft drink at your shop?
(a) Yes (b) No
If yes then, which brand?
Coke
Pepsi
Both
None of Them
2. Which brand you selling more ?
(a) Coke (b) Pepsi (c) Other
Reason____________________________________________________________
3. Which brand you normally stock ?
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(a) Coca Cola (b) Thumps up (c) Limca (d) Sprite(e)
Mazaa
(f) Fanta
4. What is the size of Pack that you sold at your shop?
(a) 300 ml (b) 500 ml (c) 1.5 l (d) 2 l
(e) all range
5. How many frequency of coke delivery ?
(a) Daily (b) Alternative (c) After 2-3 days (d)
Weekly
6. Cooling system (S.G.A) at your shop?
(a) By Coke (b) By pepsi (c) Self
7. How can you know about schemes ?
(a) Sales man (b) Other retailer (c) Other Sources
8. Are you have seasonal outlet or annual ?
(a) Seasonal (b) Annual
9. Does Coke demand increase as comparative last year ?
(a) _____________________________________________________
10. Are you in the RED Program?
(a) Yes (b) No
11. Any suggestion to Coca Cola company :-
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BIBLIOGRAPHY
1). Kotler, Philip, Marketing Management, Delhi, Pearson Education Pvt.
Ltd., 2004
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Websites :
www.coke.com
www.cococolaindia.com
www.tropicana.com
www.google.com
Magazines :
Business world
Business today
News Paper
Economic Times
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