Coca Cola Marketing
Coca Cola Marketing
Coca Cola Marketing
AN INTERNSHIP REPORT ON
INDUSTRY GUIDE MR. RITESH JHA SALES &DISTRIBUTION HINDUSTAN COCOCOLA BEVERAGES PVT LIMITED
ACKNOWLEDGEMENT
I would like to thank Dr. P.NARESH KUMAR zonal head-human resources (AP) & D.HARIKA SREE (HR), Coca-Cola India, without whom an internship with, Hindustan Coca-Cola Beverages Private Limited (HCCBPL) would not have been possible. I am grateful to him for having taken time off his busy schedule and spoken to the concerned person to get me this internship. I express my gratitude to the Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for having given me an opportunity to work with them and make the best out of my internship. I thank my trainers, Mr. shankar and Mr. ritesh jha for having trained me and constantly guided and supported me throughout the training period. My heartfelt gratitude also goes out to the staff and employees at HCCBPL for having co-operated with me and guided me throughout the one and a half months of my internship period. I thank my school, institute of public enterprise Academy of Management Studies for having given me this opportunity to put to practice, the theoretical knowledge that I imparted from the program. I thank course coordinators; Dr.v.srikanth and internship guide Mr. P.mahesh for having guided and supported me through the course of the internship. I take this opportunity to thank my parents and friends who have been with me and offered emotional strength and moral support.
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1. EXECUTIVE SUMMARY
oca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and
syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, Distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveals its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its reentry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. The main objective of this study lies in understanding the organization and studying and understanding the retailers perception and opinion about the Coca-Cola Company. An outlets sampling involving 125 retail outlet owners was conducted in a span of 48 days across Hyderabad. To study the behavior of retailers towards coca cola company and their requirements from company and analyze the reasons for willingness to sell Coca-Cola product brands .To find the reasons for losing the market shares in Hyderabad, Study the distribution network of Coco cola and retailer satisfaction level. The methodology used in studying and understanding the perceived views of retailers towards the Coca-Cola Company was SAMPLING. The findings of the activity have been drawn out inform of graphs and suggestions have been offered there from.
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TABLE OF CONTENT
CONTENTS
CHAPTER -I INTRODUCTION .............................................................................................. 1 1.1 INTRODUCTION TO COLD DRINK SECTOR ........................................................... 2 1.2 NEED FOR STUDY ........................................................................................................ 2 1.3 OBJECTIVES OF THE STUDY ..................................................................................... 3 1.4 METHODOLOGY .......................................................................................................... 3 1.5LIMITATIONS OF THE STUDY.................................................................................... 4 CHAPTER -II INDUSTRY PROFILE ...................................................................................... 5 2.1 INTRODUCTION TO FMCG ......................................................................................... 6 2.2OVERVIEW INDIAN FMCG SECTOR ...................................................................... 6 2.3 MAJOR SEGMENTS IN INDIAN FMCG SECTORS................................................... 7 2.4TOP 10 FMCG COMPANIES IN INDIA ........................................................................ 9 2.5 BEVERAGE AND SOFT DRINK INDUSTRY ........................................................... 11 2.6 MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY ....................................... 13 2.7 HIGHLIGHTS OF BEVERAGE AND SOFT DRINK INDUSTRY............................ 14 2.8 THE FUTURE OF BEVERAGE AND SOFT DRINK INDUSTRY ........................... 15 2.9 SWOT ANALYSIS OF BEVERAGE AND SOFT DRINK INDUSTRY .................... 16 2.10 INDUSTRIAL LIFE CYCLE ...................................................................................... 17 2.11 GOVERNMENT POLICIES ....................................................................................... 18 2.12 INNOVATIONS AND TRENDS IN THE BEVERAGE INDUSTRY ...................... 19 CHAPTER III COMPANY PROFILE .................................................................................. 21 THE COCA-COLA COMPANY ........................................................................................ 22 3.1 HISTORY ...................................................................................................................... 22 3.2 HISTORY OF BOTTLING ........................................................................................... 24 3.3 MANIFESTO FOR GROWTH ..................................................................................... 26 3.4 HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL) ......... 27 3.5 PRODUCTS................................................................................................................... 30 3.6 MISSION ....................................................................................................................... 32 3.7 VISION .......................................................................................................................... 32 3.8 FACTORS OF SUCCESS ............................................................................................. 34 iv
3.9 MILESTONES ACHIEVED ......................................................................................... 35 3.10 FUTURE PLANS ........................................................................................................ 35 3.11 SWOT ANALYSIS ..................................................................................................... 36 CHAPTER-IV THEORETICAL FRAMEWORK OF THE STUDY ..................................... 40 4.1 MARKETING................................................................................................................ 41 4.2 MARKETING MIX ....................................................................................................... 41 4.3 DEVELOPING RESARCH PLAN ............................................................................... 43 4.4 DISTRIBUTION CHANNEL IN HYDERABAD ........................................................ 47 CHAPTER -V ANALYSIS ................................................................................................... 50 5.1.1 COMPANYS STOCK ........................................................................................... 51 5.1.2 RETAILERS WILLINGNESS TO SELL COCA -COLA................................ 52 5.1.3 VISI COOLERS IN STORES ..................................................................... 53 5.1.4 COCA-COLA VISI COOLER REQUIREMENT .............................................. 54 5.1.5 SOLD COCA-COLA PRODUCT EARLIER ..................................................... 55 5.1.6 COCA-COLA SERVICE ....................................................................................... 56 5.1.7 DAILY SALES ........................................................................................................ 57 5.1.8 REASONS FOR BEING A COCA-COLA RETAILER ................................... 58 5.2 BCG-MATRIX FOR THE PRODUCT LINE OF COCA-COLA ................................ 59 5.3 PORTERS 5 FORCES MODEL .................................................................................. 61 5.4 SALES PROJECTION .................................................................................................. 63 5.5 TREND ANALYSIS ..................................................................................................... 66 5.6 PRODUCT PROFILE OF COCA-COLA ..................................................................... 68 5.7 Product Line of Indigenous Competitor PEPSICO ....................................................... 70 5.8 MAJOR COMPITATORS IN INDIAN BEVERAGE INDUSTRY ............................. 71 Beverages-........................................................................ Error! Bookmark not defined. CHAPTER VI ....................................................................................................................... 75 6.1 SUMMARY ................................................................................................................... 76 6.2 SUGGESTIONS ............................................................................................................ 77 6:3 CONCLUSION .............................................................................................................. 77
LIST OF CHARTS
CHART 1: MARKET SHARE .................................................................................................. 9 CHART 2: MARKET SHARE OF FMCG COMPANIES IN INDIA .................................... 10 CHART 3:MARKET SHARE OF TOP BEVERAGE INDUSTRY IN INDIA ..................... 13 CHART 4: COCA-COLA OPERATING AREA MARKET SHARES .................................. 23 CHART 5: COMPANY STOCK AT RETAILERS LEVEL ................................................. 51 CHART 6: NO OF RETAILERS WILLINGNESS TO SALE COCA-COLA PRODUCTS 52 CHART 7: VISI COOLER AVABILITY IN STORES .......................................................... 53 CHART 8: COCA-COLA VISI COOLERS REQUIREMENTS ............................................ 54 CHART 9:COCA-COLA PRODUCT SOLD EARLIER........................................................ 55 CHART 10: COCA-COLA SERVICE .................................................................................... 56 CHART 11: COLD DRINK SALE OF OUTLETS ................................................................ 57 CHART 12: REASON FOR NOT SELLING COCA-COLA COMPANY PRODUCTS ...... 58 CHART 13: COCA-COLA REVENUE IN BILLION $ ......................................................... 64 CHART 14: UNIT CASE VOLUME IN BILLION ................................................................ 65 CHART 15: TREND ANALYSIS ........................................................................................... 67
LIST OF FIGURES
FIGURE 1:BEVERAGE INDUSTRY CLASSIFICATION ................................................... 11 FIGURE 2: PRODUCT LIFE CYCLE .................................................................................... 17 Figure 3:PRODUCT LIFE CYCLE OF BEVERAGE INDUSTRY ....................................... 18 FIGURE 4: COCA-COLA BOTTLING PLANTS IN INDIA ................................................ 29 FIGURE 5: COCA-COLA PRODUCT LINES ....................................................................... 32 FIGURE 6: SUSTAINABLE GROWTH ................................................................................ 33 FIGURE 7: MARKET RESEARCH CLASSIFICATION ...................................................... 46 FIGURE 8: COCA-COLA DISTRIBUTION CHANELS ...................................................... 48 FIGURE 9: BCG MATRIX ..................................................................................................... 59 Figure 10: COCA-COLA BCG MATRIX ............................................................................... 61
LIST OF TABLES
TABLE 1: TOP 10 FMCG COMPANIES IN INDIA ............................................................. 10
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CHAPTER -I INTRODUCTION
he Rs 50 billion soft drink industries are growing now at 6 to 7% annually. In India Coca-Cola product and Pepsi have a combined market share of around 95% directly or through franchisees Campa cola has a 1% share and the rest is divided among
local players. Industry watchers say, fake products also account for a good share of the balance. There are about 110 soft drink producing units (60% being owned by Indian bottlers) in the country, employing about 125000 people. Beverage industry is one of the fast growing industries in India .it can be divided into two sections i.e. carbonated and noncarbonated. the carbonated drinks that can be further classified into cola, lemon orange, mango and apple segments. Marketing includes all the activities like promotion, distribution, advertising etc. To fulfill all the segments of consumers. Marketing is also to convert social needs into profitable opportunities. So this topic provides all the essentials to theoretical knowledge with practical knowledge and to inculcate the efficiency. It is also requirement for the company to improve their service and product quality for achieving their ultimate goal. As far as the soft drink market is concerned, it is facing the cut throat competition because of the availability of a large number of indirect as well as direct competitors. Single company offers the soft drink to the market in different taste and flavors. In this industry entire range of flavors are produced by other competitors also. More often it becomes
impossible to differentiate between the same flavors of two different brands, when served in plane container, range also. All these factors together make the situation
1.4 METHODOLOGY
The project is prepared on the basis of primary and secondary data pertaining to Coca-Cola. Primary data includes collecting data through a survey specifications, promotional activities are obtained from the broachers and other records maintained by the company.
Sources of Data The data which has been collected for this research is taken from the market in the form of primary and secondary data. Secondary data For the secondary data various websites have been of help for collecting necessary information regarding products of Coca-Cola.
Primary data Data is collected specially for the study currently undertaken. For this study a questionnaire was generated and the respondents were interviewed personally. Personal interview is the method in which the related /concerned people are directly interacted and interviewed.
Questionnaire A set of 8 questions were designed in order to complete the study. This questionnaire includes closed ended questions.
Sample To fulfill the objectives of the study the data is collected from 125 outlets who is selling soft drinks from different areas of Hyderabad.
roducts which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. Indias FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. Its principal constituents are Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain a high growth rate.
Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industries.
per cent. The oral care market can be segmented into toothpaste, toothpowder, and toothbrushes. This segment is dominated by Colgate-Palmolive followed by HUL. In toothpowders market, Colgate and Dabur are the major players. Food and Beverages This segment comprises of the food processing industry, health beverage industry, bread and biscuits, chocolates & confectionery, Mineral Water and ice creams. The three largest consumed categories of packaged foods are packed tea, biscuits and soft drinks. Indian hot beverage market is a tea dominant market. The major share of tea market is dominated by unorganized players. Leading branded tea players are HUL and Tata Tea. Major players in food segment are HUL, ITC, Godrej, Nestle and Amul. Sectoral Opportunities There are some under penetrated segments which need to be tapped by companies. Dairy Based Products: India is the largest milk producer in the world, yet only around 15 per cent of the milk is processed. The organized liquid milk business is in its infancy and also has large long-term growth potential. Even investment opportunities exist in value-added products like desserts, puddings etc. Packaged Food: Only about 10-12 per cent of output is processed and consumed in packaged form, thus highlighting the huge potential for expansion of this industry. Oral Care: The oral care industry, especially toothpastes, remains under penetrated in India with penetration rates around 50%. With rise in per capita incomes and awareness of oral hygiene, the growth potential is huge. Lower price and smaller packs are also likely to drive potential up trading. Beverages: Indian tea market is dominated by unorganized players. More than 50% of the market share is capture by unorganized players highlighting high potential for organized players. India has more than 17% of the worlds population and that half of these people are below the age of 25. With a median age of 25 years, increasing numbers are joining the Indian workforce. Indias share in world consumer spending is set to enlarge from 1.9% in 2005 to 3.1% in 2020. The Indian FMCG industry is estimated to be over 1, 30,000 crores in size and accounts for 2.2% of the GDP of the country. The industry has tripled in size over the last 10 years and 8
has grown at approximately 17% CAGR in the last 5 years, driven by robust macroeconomic conditions, rising income levels, increasing urbanization and favorable demographic trends. These drivers are expected to continue to favorably impact the industry which is estimated to further triple in size in the next ten years to 4,00,000 crores by 2020 (Source: CII, FMCG Roadmap to 2020).
Dabur India Asian Paints Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries
Market share
OTHERS 15%
HUL 37%
ITC 30%
A beverage is a drink specifically prepared for human consumption. Beverages almost always largely consist of water. Drinks often consumed include: Water (both flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy drinks, Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy products like milk. Commonly, drinks are filled into containers, like glass or plastic bottles, steel or aluminum cans as well as cardboard supported packages, like the "TetraPak" or others. Filling of beverages can be done cold, hot, ambient and cold-aseptic filling to mention the latest trend of beverage marketing and technology.
The beverage is mainly categorized into two major categories based upon the alcoholic and nonalcoholic nature of the drink. Non-Alcoholic beverages are further o two types based upon carbon content. These beverages contain Fruit juices, Coffee, Tea, Soda, Colas. The Alcoholic beverages are based upon the fruit content and grain. It may be Wine, Brandy, Whisky or Beer.
In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the exi 11
The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows:
Alcoholic, non-alcoholic and sports beverages Natural and Synthetic beverages In-home consumption and out of home on premises consumption. Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption. If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.
Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for 12
brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.
TABLE 1: TOP 10 FMCG COMPANIES IN INDIA ............................................................. 10 TABLE 2: MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY ............................... 13 TABLE 2: MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY
MARKET SHARE
28.3
13.8 24.2
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The non-alcoholic drinks market has witnessed rapid growth over the past few years in India. Increasing middle-class population, rapid urbanization and rising disposable income are some of the major factors fuelling this growth. The industry is broadly classified into soft drinks and hot beverages. The carbonated drinks market is close to Rs 6,000 crore and is growing by 10-12 per cent annually. The fruit-based beverage market stands at Rs 5,000 crore and is growing at 35-40 per cent annually. The fruit-based beverage market is divided into three segments - fruit drinks, nectar and 100 per cent juice. Coca-Cola, PepsiCo, Parle Agro Pvt. Ltd, Dabur and Godrej are among the leading players in the domestic non-alcoholic beverage circuit, highlights a certain study. Carbonated or aerated drinks account for about 30 per cent of the total non-alcoholic beverages market in the country. The size of the segment is currently estimated at about Rs 1,800 crore, while the value of the fruit drink segment is estimated at about Rs 1,200 crore and the energy drinks market is worth about Rs 600 crore. The functional drinks segment is dominated by energy drinks. The current market size of energy drinks in India is around Rs 500 crore and it is expected to grow at a CAGR of 25 per cent. Within the hot beverages category, India is the largest producer of tea with a total turnover of around Rs 8,500 crore, growing at a rate of 1-2 per cent annually. India is the world's fifth largest producer of coffee, accounting for 4 per cent of the world's production. The fruit / vegetable juice segment is expected to grow at a CAGR of 30 per cent in value terms, followed by the energy drinks segment at a CAGR of around 25 per cent in value terms.
Non-alcoholic beverages
Soft drinks constitute the third-largest packaged food segment in India after packaged tea and packaged biscuits. But the penetration level of carbonated soft drinks in India is still low compared with other developing markets, a sign that this market has potential for rapid 14
growth. The market size for bottled water in India had an estimated value of US$570 million in 2008. With annual growth of 14.5 per cent, sales of bottled water are set to increase rapidly over the next five years. The market for juice will also grow dramatically in coming years With an annual growth rate of almost 15 per cent.
Milk
Unlike most other Asian countries, dairy products are a well-established part of the national diet in India. With an annual output of more than 100 million tonnes, India is the largest milk producer in the world. Currently, only 13 per cent of the milk is processed. The unorganized sector distributes 85 per cent; however, the organized sector is growing rapidly. Demand for packaged milk and milk products will increase because the growing middle-class, healthconscious consumer segment - especially in towns and cities - is adopting Western lifestyles and consequently buying more and more processed and packaged food. The availability of fresh / pasteurized and long life / UHT milk is increasing nationwide.
The estimated INR 340 bn Indian liquor industry is expected to maintain its CAGR of 15%.
OPPORTUNITIES Presence of a favorable market Market globalization Foreign direct investment promoting knowledge and developing export channels Transfer of production to the countries with smaller labor costs Well established distribution network
THREATS Unfavorable market trends in energy resources Increasing competition among exporters and decreasing dependency on one market 16
Intense competition between the organized and unorganized segments and low operational cost. Water scarcity in India Increasing of Goods and Service tax in 2013-2014.
FMCG sector central and state initiatives Recently Government has announced a cut of 4 per cent in excise duty to fight with the slowdown of the Economy. This announcement has a positive impact on the industry. But the benefit from the 4 per cent reduction in excise duty is not likely to be uniform across FMCG 18
categories or players. The changes in excise duty do not impact cigarettes (ITC, Godfrey Phillips), biscuits (Britannia Industries, ITC) or ready-to-eat foods, as these products are either subject to specific duty or are exempt from excise. Even players with manufacturing facilities located mainly in tax-free zones will also not see material excise duty savings. Only large FMCG-makers may be the key ones to bet and gain on excise cut. Foreign Direct Investment (FDI) Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector except malted food, alcoholic beverages and those reserved for small scale industries (SSI). There is a continuous growth in net FDI Inflow. There is an increase of about150 per cent in Net Inflow for Vegetable Oils & Vanaspati for the year 2011.
Natural energy looks like being a growing trend in 2012. Consumer awareness of ingredients is now at its highest level ever and 'natural' is a strong lever when it comes to beverage purchase. There is greater awareness, too, of terms such as 'antioxidant' and 'contains vitamin C', with consumers looking for dual functionality from their drinks. Added value in terms of being 'more than just hydration' is popular when it comesto meal replacement drinks such as smoothies. Carbonated soft drinks have seen resurgence in popularity over the last year as 'the affordable treat' for many families cutting back in difficult economic times. Diet and zero CDSes are now selling on 50:50 ratios, with full sugar carbonates in developed regions.
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Citrus-flavored juice-enhanced drinks have found a good following during the past year, with some more exotic juice blends finding new favors, such as lemon and acerola cherry, coconut and pineapple and grapefruit and elderflower, to name just a few. Clear beverages are increasingly popular, with consumers seeing them as 'hydrating' and natural. More sophisticated alternatives for non-drivers and those watching their weight are appearing on the pub and club scene. Ready-to-drink teas are still growing in popularity across the globe, especially in 50 clformats. Better quality drinks for children. Half-juice and water drinks are easier to drink and win parental approval. Packaging is improving its sustainable credentials in leaps and bounds, with biopolymers such as Coca-Cola's Plant Bottle concept, increasing demand and use of PET and brown paper cartons, and recyclable labels emphasizing end-of-life planet awareness. Music festivals are now recognized as an important forum for beverages, not only for sampling, sales and marketing of drinks, but also for education regarding recycling on a grand scale.
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oca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a threelegged brass kettle in his backyard. He first distributed the product by carrying it
in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for CocaCola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr.Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.
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The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys incorporation, Mr. Candler announced in his annual report to share owners that Coca-Cola is now drunk in every state and territory in the United States.
As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.
The operating groups: North America group Latin America group Europe & Eurasia group Asia pacific group Africa and Middle east group
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EUROPE & EURASIA GROUP ASIA PACIFIC GROUP AFRICA & MIDDLE EAST GROUP
Year 1894: A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. Year 1899: The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. Year 1916: Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world. 24
In the 1920s: Bottling overtakes fountain sales As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.
In the 1920s and 1930s: International expansion Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries.
In the 1940s: Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. In the 1950s: Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960. In the 1960s: Introduction of new brands Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world. In the 1970s and 1980s: Consolidation to serve customers Advancement in technology led to global economy, retail customers of The Coca-Cola Company merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 25
In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century: Coca-Cola today The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.
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 FOR SUSTAINABLE GROWTH PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities. 26
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.
Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide. LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA
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Management philosophy The major concept of the management philosophy is to retain in the beverage industry and not diversify in to other areas. The management believes in non capital-intensive areas. In fact, the beverage industry requires little capital, and produces maximum revenue returns. The returns from the foreign market are tapped to the most. The corporate objectives are to increase the shareowners value, the management believes that in increasing the shareholders value it requires consistent growth in financial results complemented by effective use of the cash flow. 29
Marketing area Here the management is committed to superior market place execution. This is achieved by decentralized operating structure that places the responsibilities, authority and the accountability as close to the customers and consumer possible. The brand The Coca-Cola consistently ranks first in the worlds most valuable brands. The brand value is about $39billion. This is heritage of the company. As far as the branch management concerned, we find that Coca-Cola ranks itself as third only after Microsoft and Louis volition.
3.5 PRODUCTS
The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to bottle or pack the existing drinks. The Coca-Cola Company has a wide range of products out of which the following products are marketed by HCCBPL: Coca-Cola Diet Coke Thumps Up Sprite Fanta Limca Maaza Maaza Milky Delite Minute Maid Pulpy Orange Minute Maid Nimbu Fresh Burn Kinley Water Kinley Soda Schweppes
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FIGURE 5: COCA-COLA PRODUCT LINES Four basic segments o Refreshment: Csds: Coca-Cola, fanta, sprite, thumsup, limca. o Rejuvenation: ready to drink tea & coffee-Nestea, Georgia gold. o Health and nutrition: juice and milks-bibo, Fruitopia, minute maid, maaza. o Replenishment: water and sports drinks- kinley, Kinley soda.
3.6 MISSION
Coca-Cola exits to create value for our shareowners on a long term basis by building a business that enhances the Coca-Cola companys trademarks. This is also is Coca-Cola ultimate commitment. As the worlds largest beverage company, Coca-Cola refresh the world Coca-Cola non alcoholic superior soft drink, both carbonated , and non-carbonated, and profitable non alcoholic beverage systems that create value for our company, our bottling partners and our customers. In creating value, Coca-Cola succeed or fail based on our ability ti perform as worthy stewards of seven of several key assets like,
o o o
To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference...
3.7 VISION
The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for 32
tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Road map" for winning together with our bottling partners. Our vision serves as the framework for our Road map and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy peoples desires and needs
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities
Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities
Live Our Values Our values serve as a compass for our actions and describe how we behave in the world.
Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, its up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well
Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious
Work Smart
Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently
Be accountable for our actions and in actions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems 34
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STRENGTHS
DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.
STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white CocaCola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Inter brand. It was estimated that the Coca-Cola brand was worth $70.45billion.
LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.
WEAKNESSES
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LOW EXPORT LEVELS: The brands produced by the company are brands produced worldwide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, Malathion and chlorpyrifos- pesticides that can contribute.
to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.
SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Companys operations are carried out on a small scale and due to Government restrictions and red-tapism, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.
OPPORTUNITIES
LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market.
EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable
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amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.
HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.
THREATS
IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.
TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems.
SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the companys products.
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4.1 MARKETING
arketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
For business to consumer marketing, it is "the process by which companies create value for customers and build strong customer relationships, in order to capture value from customers in return". For business to business marketing it is creating value, solutions, and relationships either short term or long term with a company or brand. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably. A different concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value. In this context, marketing is defined as "the management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage. Marketing strategy A Marketing Strategy consists of selecting a segment of the market as the companys target market and designing the proper mix of the product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market.
making strategic decisions necessary for the smooth running of any organization. These variables are Product Price Place Promotion
As mentioned before, the marketing mix is characterized by four different but equally important variables. These variables are never constant and may be changed over time. However, a change in one of the variables may cause a change in all the other variables as well. The variables are as follows 1) Product The first thing you need, if you want to start a business, is a product. Therefore Product is also the first variable in the marketing mix. Product decisions are the first decisions you need to take before making any marketing plan. A product can be divided into three parts. The core product, the augmented product and the tertiary product. 2) Pricing Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc. Many of these factors can change separately. Thus the pricing has to be such that it can bear the brunt of changes for a certain period of time. However, if all these variables change, then the pricing of a product has to be increased and decreased accordingly. Along with the above factors, there are also other things which have to be taken in consideration when deciding on a pricing strategy. Competition can be the best example. Similarly, pricing also affects the targeting and positioning of a product. Pricing is used for sales promotions in the form of trade discounts. Thus based on these factors there are several pricing strategies, one of which is implemented for the marketing mix. 3) Place Place refers to the distribution channel of a product. If a product is a consumer product, it needs to be available as far and wide as possible. On the other hand, if the product is a Premium consumer product, it will be available only in select stores. Similarly, if the product is a business product, you need a team who interacts with businesses and makes the product available to them. Thus the place where the product is distributed depends on the product and pricing decisions, as well as any STP decisions taken by a firm. 4) Promotions Promotions in the marketing mix includes the complete integrated marketing communications which in turn includes ATL and BTL advertising as well as sales 42
promotions. Promotions are dependent a lot on the product and pricing decision. What is the budget for marketing and advertising? What stage is the product in? If the product is completely new in the market, it needs brand / product awareness promotions, whereas if the product is already existing then it will need brand recall promotions. Promotions also decide the segmentation targeting and positioning of the product. The right kind of promotions affect all the other three variables the product, price and place. If the promotions are effective, you might have to increase distribution points, you might get to increase the price because of the rising brand equity of the product, and the profitability might support you in launching even more products. However, the budget required for extensive promotions is also high. Promotions are considered as marketing expenses and the same needs to be taken in consideration while deciding the costing of the product. Thus as we see from the above explanations, all the four variables of marketing mix are inter related and affect each other. By increasing the pricing of the product, demand of the product might lessen, and lesser distribution points might be needed. On the other hand, the product USP can be such that maximum concentration is on creating brand awareness, thereby increasing need of better pricing and more promotions. Finally, the overall marketing mix can result in your customer base asking for some improvement in the product, and the same can be launched as the upgraded product. The above four Ps of marketing give an overall look at the product marketing mix. If product is a service then there are 3 further Ps taken into consideration namely people, physical evidence and process.
RESEARCH METHODOLOGY
Research in common refers to a search of knowledge. One can also define research as a scientific & systematic search for pertinent information of a specific topic. It is the pursuit of truth with the help of study observation, comparison & experiment. This research involved a 43
study, which was descriptive as well as explorative in nature it basically aims at gathering data about how the coca-cola scheme playing in the mind of shopkeepers & consumer Marketing Research: Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem. (Burns and Bush Definition) Marketing research: the function that links the consumer, customer, and public to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process. (AMA Definition) Marketing research is the systematic design, collection, analysis & reporting of data & findings relevant to a specific marketing situation facing the company.(Philip kotler).
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Research Design
A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems.
METHODS OF DATA COLLECTION THERE ARE TWO TYPES OF DATA 1. Primary data 2. Secondary data 1. Primary data collection: Data is collected specially for the study currently undertaken. For this study a questionnaire was design and the respondents were interviewed personally. Personal interview is the method in which the related /concerned people are directly interacted and interviewed. Primary data can be collected by Three methods. a) Observation b) Experiment c) Surveys But here, only surveys method of data collection is preferred which is very suitable to reach the researcher motto. A. Research instrument: Printed Questionnaire was used as the research instrument to collect the required information. B. Area of surveys: The survey was conducted in different location of Hyderabad city. Sampling plan: sampling plan consists of I. Sampling unit: The retailer of Grocery shop, general store, betel shop, restaurant and school and colleges student was selected from different places of Hyderabad. II. Sampling size: 125. III. Sampling procedure: Simple random sampling procedure was followed. IV. Sampling method: Data were collected by retailer survey. The retailers are directly contacted and interviewed at their retail counter and with their customer also. 2) Secondary data collection: For secondary data I have referred to several journals, office manuals, research websites and other sources of information to make this report more authentic and useful.
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CHANNEL
(A) GROCERY STORE Grocery (customer profile): Store stocking a variety of regular uses household items. The channels provide an opportunity for penetration as it propels home consumption. It includes all kirana stores, juice, departmental stores, supermarkets, proVISIon stores etc. Necessary Availability - 2 liter and 300ml
(B) EATING & DRINKING CHANNEL 1 Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller dhabas. These outlets offer multiple opportunities to effect sales as people usually order something to drink along with food. It includes - Restaurants - Bars and Pubs - Dhabas - Cafes
(C) EATING & DRINKING CHANNEL 2 It includes bakery, sweet shops, tea shops, soft drink shops and juice centre.
(D) CONVENIENCE CHANNEL Pan/bidi shops (customer profile) : This segment includes PAN BIDDI outlets that Stock cigarettes, mint, and confectionary. It covers STD/ISD phone booths, travel channel etc. Small outlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml.
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CHAPTER - V ANALYSIS
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5.1.1 COMPANYS STOCK NAME COMPANY COCA-COLA PEPSI BOTH TOTAL 34 66 25 125 27% 53% 20% 100% OF THE NO OF OUTLETS IN PERCENTAGE
NO OF OUTLETS
70 60 50 40 30 20 10 0 COCO-COLA PEPSI BOTH 66
34 25
NO OF OUTLETS
CHART 5: COMPANY STOCK AT RETAILERS LEVEL INTERPRETATION: From the given table, 34 outlets have Coca-Cola product stock, 66 have Pepsi stock and 14 have both. 51
26%
YES NO 74%
INTERPRETATION:From the given table, 73% outlets are ready to sale Coca-Cola products and 26% are dont want to sell Coca-Cola products. 52
NAME COMPANY
OF
THE NO OF OUTLETS
IN PERCETAGE
32 62 17 14 125
NO OF OUT LETS
70 62 60 50 40 32 30 20 10 0 COCO-COLA PEPSI BOTH NONE 17 14 NO OF OUT LETS
INTERPRETATION:From the given table of outlets behavior toward to Coca-Cola product outlets,62 outlets have Pepsi VISI coolers, 32 have Coca-Cola product VISI coolers,14 have none VISI coolers and 17 have both Coca-Cola product and Pepsi VISI coolers. 53
NO OF OUTLETS IN PERCENTAGE
INTERPRETATION:From the given table, 42 outlets need Coca-Cola product VISI COOLERS. 54
NO OF OUTLETS IN PERCENTAGE
INTERPRETATION:From the given table, 53 outlets have sold Coca-Cola product earlier and now converted into Pepsi and 38 have never sold Coca-Cola product. 55
NO OF OUTLETS
44 45 40 35 30 25 20 15 10 5 0 YES NO NO OF OUTLETS 32
INTERPRETATION:From the given table 32 outlets said yes and 44 said no. 56
NO OF OUTLETS
60 57
50
45
40
30 23 20
NO OF OUTLETS
10
INTERPRETATION:From the given table, 45 outlets have average sale, 57 have good sale and 23 outlets have very good sale of soft drink 57
IN PERCENTAGE 16%
PROVIDED TIE UP WITH PEPSI/PEPSI 26 APPROACHED FIRST COCA-COLA PRODUCT 22 24% 28%
SERVICE NOT GOOD SCHEMES NOT GOOD AS 29 PEPSI TOTAL 91 100% 32%
NO OF OUTLETS
30 25 20 15 10 5 0 VISI COOLER NOT PROVIDED TIE UP WITH PEPSI COCO-COLA SERVICE NOT GOOD SCHEME NOT GOOD AS PEPSI 14 NO OF OUTLETS 29 26 22
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INTERPRETATION:From the given table, 14 outlets didnt sell Coca-Cola product due to absence of Coca-Cola product VISI coolers, 26 outlets due to Pepsi tie ups and first approach, 22 due to bad service, and 29 due to not so good schemes. 5.2 BCG-MATRIX FOR THE PRODUCT LINE OF COCA-COLA
Boston consulting group (BCG) matrix is developed by Bruce Henderson of the Boston consulting group in the early 1970s. According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share.
STARS High growth business competing in market where they are relatively strong compared with the competition. They have a high point shares and are the ideal businesses. High growth, High market share
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CASH COWS The low-growth business with a relatively high point market shares. These businesses were stars but now have lost their attractiveness.
DOGS Businesses that have low relative share and low expected growth rate. Dogs may generate enough points to sustain but they are rarely, if ever, a competing force.
QUESTIONMARKS Businesses with low point share but which may have a high growth rate. This suggests that they have potential but may require huge ever, a competing force extraordinary effort in order to grow point share.
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The five forces model of Porter is and outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value) of an industry structure Allows the development of a competitive strategy Suggests 5 main forces may be decisive in helping shape the outcome: Suppliers 61
Coca-Cola Pepsi
Substitutes (Wilde and Thick causing a significant decline in Coca-Cola profits . To reduce the threats it embraced bottling and concentrated on diversification
Teas Milk Coffee Juice Alcoholic drinks Bottled water Energetic drinks Other refreshments Coconut water
Power of Suppliers
Sugar Packaging
Bargaining power of suppliers is low due to two reasons. First, the main inputs are sugar and packaging. Sources of sugar are on the open market which subsequently makes the creation power of suppliers at low levels. There are several suppliers for packaging as well as the abundance in supply of inexpensive aluminum. Second, direct negotiations from concentrate producers to suppliers are present; an initiative to encourage reliable supply, faster delivery and lower prices. 62
o Bargaining Power of Buyers depends on the marketing channel used. For Coca-Cola, there are six core channels such as:
Super Markets Convenience Stores Mass Merchandisers Fountain Vending machine Restaurants and Food stores
Bargaining power of buyer is high for fountain supermarkets and mass merchandising because of the low profitability and strong negotiation power of retail channels but for vending bargaining power is non-existing caused by high profitability
Big cola Rc cola Tata Tetleys fun pill Tata glucose plus MORE cola Local Brands
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1 REVENUE IN BILLION $
REVENUE IN BILLION $
70000
60000
50000
40000
20000
10000
YEAR
0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
In analyzing Coca-Cola's earnings growth over the past five years, you can see a positive earnings trend revenue. Even though the company reported a couple of down years the 64
overall trend is positive. Over the past five years, Coca-Cola's earnings have been increasing and have shown a 43.32% increase over its 2007 earnings. And also company planning to invest $30 billion globally by 2020.So automatic it will affect on the future revenue growth.
35
30
25
10
YEAR
0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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The company plans to invest $30 billion globally by 2020. One-sixth of the planned global investment will be made in India.
"Investment in India is focused on delivering innovation, partnerships and a portfolio that enhances the consumer experience, ensures product affordability and builds brand loyalty to deliver long-term growth," Kent said. "Their target is to double their business between 2010 and 2020. What they have achieved in 125 years, they want to create in 10 years, and also the company has planned to invest $5 billion in India over the next eight years on expanding its bottling and other business capacities. Coca-Colas Plant Bottle is expanding beyond the companys Dasani bottled water line in a new three-city pilot program. Customers at college campuses, convenience stores, sporting events and other outlets
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0.4
0.3
0 Sept. 30, 2007 31-Mar-08 Sept. 30, 2008 31-Mar-09 Sept. 30, 2009 31-Mar-10 Sept. 30, 2010 31-Mar-11 Sept. 30, 2011 31-Mar-12 Sept.30,2012 Mar.31,2013 Sep.30,2013 Mar.31,2014 Sep.30,2014 Mar.31,2015 Sep.30,2015 Mar.31,2016 Sep.30,2016 Mar.31,2017 Sep.30,2017
-0.1
-0.2
After analysis of Coca-Cola's profitability it tells the story of a solid company with some declining margins. Over the past 5 years, earnings have increased while some of the listed profit margins have slipped in 2011. Coca-Cola has a large amount of free cash at hand, 67
which means it will likely continue to grow for the foreseeable future because of the investment in $30 billion globally by 2020. Also the company has planned to invest $5 billion in India over the next eight years on expanding its bottling and other business capacities.
1. Coca-Cola: Coca-Cola is the most popular and biggest-selling soft drink history, as well as the best-known product in the world. Available in the following flavors: Cola-Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry. 2. Diet Coke: Diet Coke was born in 1982. Diet Coke is the drink for people who want no calories, but plenty of taste. Known as Coca-Cola light in some countries, it's now the No. 3 soft drink in the world. Available in the following flavors: Black Cherry Cola Vanilla, Cola, Cola Green Tea, and Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry 3. Fanta: Fanta was introduced in the United States in 1960. Consumers around the world, particularly teens, fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brand's fun, playful personality, which goes hand in hand with its bright color, bold fruit taste and tingly carbonation. 4. Kinley: Kinley is a carbonated water that comes in wide array of such as tonic, bitter lemon, club soda and a myriad of fruit flavors. 68
Available in the following flavors: Apple Peach, Bitter Grapefruit, Bitter Herbal, Bitter Lemon, Bitter Water, Blueberry Pomegranate, Club Soda, Ginger Ale, Lemon and Raspberry 5. Limca: This thirst-quenching beverage features a fresh, light lemon-lime taste and funl oving attitude. It's a homegrown, national treasure in India, that is acquired by the Coca-Cola Company in 1993. Limca continues to build a loyal following among young adults who love the lighthearted way it complements the best moments of their lives. This drink is available in lemon flavor. 6. Sprite: Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink. Sprite is sold in more than 190 countries and ranks as the No. 4 soft drink worldwide, with a strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean taste that really quenches your thirst. But Sprite also has an honest, straightforward attitude that sets it apart from other soft drinks. Sprite encourages you to be true to who you are and to obey your thirst. Available in the following flavors: Bitter Lemon Citrus Grapefruit, Citrus, Lemon and Lemon Lime. 7. Thumps up: It is a leading sparkling soft drink and most trusted brand in India. Originally introduced in 1977, Thums up was acquired by the Coca Cola Company in 1993.This brand known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. 8. PULPY ORANGE: The company developed a process that eliminated 80 % of the water in orange juice. Forming a frozen concentrate that when
reconstituted created orange juice. Available in 400 ml,1 L and 1.25 L and also in PET pack size. 9. MAAZA: Mango. It is a fruit associated with good times like no other. Apy called the king of fruits. 69
1. PEPSI: Pepsi is the most saleable product of PepsiCo. It is popular in the younger generation all around the world 2. DIET PEPSI: With its light, crisp taste, Diet Pepsi gives you all the refreshment you need -with zero sugar, zero calories and zero carbs, Light, Crisp, refreshing. 3. MIRINDA: Mirinda was originally produced in Spain. Mirinda is a brand of soft drink available in fruit varieties including orange, grapefruit, and apple, strawberry, pineapple, banana, and passion fruit and grape flavors. The orange flavor of Mirinda represents the majority of Mirinda sales worldwide. 4. 7UP: 7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the brand are held by Dr Pepper Snapple Group in the United States, and PepsiCo (or its licensees) in the rest of the world. 5. MOUNTAIN DEW: Mountain Dew (also known as Mtn Dew as of late 2008) is a soft drink Distributed and manufactured by PepsiCo. Mountain Dew (and its energy drink counterpart known as AMP) often incurs the disapproval of health experts due to its relatively high caffeine content for a soft drink or energy drink. 6. PEPSI BLUE: Pepsi Blue is a berry-flavored soft drink produced by PepsiCo. It was launched in India near the cricket world cup to associated the Pepsi with the Indian people as Blue is Official colour of Indian cricket team. The flavor of Pepsi Blue was thought by drinkers 70
to be similar to cotton candy with a berry-like aftertaste (it resembled that of blueberries or Raspberries). 7. SLICE: Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in 1984. Varieties of Slice have included Apple, Fruit Punch, Grape, Passion fruit, Peach, Mandarin Orange, Pineapple, Strawberry, Cherry Cola, "Red", Cherry-Lime, and Dr Slice.
PEPSICO
PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola Brands Foods
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DABUR INDIA LIMITED Dabur India Limited is the fourth largest FMCG Company in India with interests in Health Care, Personal Care and Food Products. It is most famous for Dabur Chyawanprash and Hajmola and REAL fruit juices. BrandsDabur Real, Dabur burst, Dabur Activ, Dabur Lemonez
RED BULL Red Bull Energy Drink is a market leader in the 500 crore energy drink segment. BrandsRed Bull, Red Bull sugar free, Red bull energy shots, Red bull cola
CAF COFFEE DAY Caf Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL). ABCTCL grows coffee in its own estates of 10,000 acres (4047 ha). The land value of the plantations is US$250300 million. It is the largest producer of Arabica beans in Asia. Apart from this, the group also sources coffee from 11,000 small growers. ABCTCL is 72
one of Indias leading coffee exporters with clients across USA, Europe and Japan. They operate about 1000 cafs across India Beverages Hot Coffees- Cafe Latte, Cafe Mocha , Cappuccino, Irish Coffee, Macchiato, Solar Eclipse, Aztec, Black Coffee, Espresso, Ethiopian Cold Coffees- All Day Refresh.., Cafe Frappe, Chill O Coffee, Devils Own, Kaapi Nirvana, Mochachillo, Tropical Ice ber... Hoteas- Darjeeling-Divi..., Lemon Demon, Assam Express, Masala Garam Frosteas- Lemon Freeze, Straw berry Choco-lattes- Choc Rocks, Hot Choc Latte Fruiteazers- Cool Blue, Green Apple Sod..., Lychee Chill, Mango Shake, and Strawberry Blus..., Black Currant B.... NESTLE INDIA Nestl is the world's leading Nutrition, Health and Wellness Company. Nestle is known for coffee and tea products BrandsNescafe, Nestea, Nescafe 3 in 1
TATA GLOBAL BEVERAGES LIMITED Tata Global Beverages Limited (formerly Tata Tea Limited) is an
Indian multinational non-alcoholic beverages company headquartered in Kolkata, West Bengal, India and a subsidiary of the Tata Group. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee. 73
COFFEE BRANDS Tata's Coorg 100% Pure Filter Coffee , Tata's Coorg Double Roast, Tata Kaapi
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CHAPTER VI
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6.2 SUGGESTIONS
The suggestion are related to the factors which the retailers behavior towards Coca-cola products. It should focus on untapped markets where there is scope to increase its market share. Distributors should focus on finding out the requirements of outlets and the problems they are facing. The process of VISI coolers installation should be simplified. They should focus on repairing faulty VISI coolers quickly. Distributors should monitor market developers and salesmen regularly to avoid inefficiencies in the supply process. Shortages during the summer season should be avoided because it conveys bad signal to the outlets and consumers. Coca-cola have to focus more on the flexibility of outlets i.e.; according to the consumption & products of the outlets they have to allocate the margin. Surprise visits should be made to increase the efficiency of Market Developers. Coca-cola should focus on all wine shops because they provide good business for all seasons Coca-cola has to focus more on HORECA distribution channels. Coca-cola has to launch drinks in 150-180ml within Rs 10-12 price range in pet/can pack. Coca-cola has to organise retaiers meat in every quarters. So they can feel good or they can reliase it they are the part of coca-cola family.
6:3 CONCLUSION
The Sampling activity was a good first step into the area of Marketing and Sales. It gave good amount of exposure mainly because after being trained, trainees were given an opportunity to carry out the process ourselves. It helped in developing a considerable amount of convincing skills, because, it took a lot of it to convince the store managers and retailers for keeping Coca-cola product and their requirements from the company and even more to convince the retailers to getting reviews from them about the company. A good understanding of the market was accomplished as around 125 retailers were spoken to and that group consisted of 77
a variety of retailers. This even helped in the polishing of communication skills, a must-have to survive and make it big in the present world. It even gave a good understanding of behavior of retailers when talked in different situations. It was a good opportunity to work on the skill of patience, as a large number of retailers were to be dealt with. It helped in developing the kind of relations one needs to uphold in the corporate world and it helped in building up the right attitude. As all the points in the above mentioned paragraph, are the must-have skills for anyone in the field of Marketing and Sales, the training period was a good experience and a good stepping stone into the real business world. As a future line of research, the Marketing and Sales Department at HCCBPL could offer projects like: Analysis Impact of advertisements on the Sales of a particular product Analysis of major trends in the Indian Non-Alcoholic Beverage market Analysis of changing trends in the market for Coca-Cola products Formulation of Market penetration strategies.
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Websites.
http://www.cocacola-india.comcybernoon.com http://news.bbc.co.uk http://www.worldofcoca-cola.com http://www.coca-cola.com http://www.ko.com http://www.hoovers.com http://www.google.com http://www.wikipedia.org
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ANNEXURE
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