Coca Cola - Ina

7/30/2019 Coca Cola - Ina

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COCA COLA: HORIZONTAL EXPANSION

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EXECUTIVE SUMMARY

Coca Cola, the product that has given the world its best-known taste was born in

Atlanta, Georgia, on May 8, 1886. Coca Cola Company is the worlds leading

manufacturer, marketer and distributor of non-alcoholic beverage concentrates andsyrups, 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 Styth 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 reveal its formula to the

Government and reduce its equity stake as required under the Foreign Exchange

Regulation Act (FERA) which governed the operations of foreign companies in

India. In the new liberalized and deregulated environment in 1993, Coca Cola

made its re-entry into India through its 100% owned subsidiary, Coca Cola India,

the Indian bottling arm of the Coca-Cola Company. Coca Cola today has a diverse

product portfolio ranging from refreshing drinks to thirst quenchers to energy

drinks. The company has also started penetrating rural markets as well with its

innovative refrigerator which runs without electricity. It is partnering with small

shopkeepers in villages to large retail outlets in cities thereby catering to wide and

diverse customer segments. What lies behind the success of Coca Cola Company?

Well successful companies have certain systems and procedures around whichcompanys marketing and operational strategies revolve, in Coca Colas case it is

Horizontal Expansion by the help of which it is trying to increase its market share

as much as possible by including as much of shops with the help of which it can

provide coca colas product to every person and locality.


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OBJECTIVES OF THE PROJECT

The main objective of the project is to enhance the sales of the organizationby including as many as shops under the Coca Cola with the help of

Horizontal expansion. The next objective of the project was to advertise the products of the

company.

To find out available opportunities in the present market by finding gaps inthe competitors penetration.

To collect data from the retailers for the activation of new channels. Find out new ways to push sale in different outlets of a particular area. To enhance market share of the company. To understand and try to solve the various shortcomings in process of

distribution system.


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SCOPE OF THE STUDY

This study helps in knowing the growth in the market with compared to thevarious competitors present in the market.

This study ensures the availability of the product in the market. This study will also help to the company to know about their new concepts

position in the market

This study will also help to the company to know about its promotionalactivities involved in advertising.

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

This study directly deals with interaction of different kinds of people in theorganization which helps me to understand the corporate communicationsystem.

This study also helps me to understand how the marketing strategy like Pulland Push works in the corporate. (For push at the time of pulpy

promotion, for pull at the time of more demand of sprite.)


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SOFTDRINK INDUSTRY IN INDIA

INTRODUCTIONThe Indian Soft-Drink Industry comprises of consumers throughout the country,

and of all demographies. The industry has been includes of all Indian Soft- Drinksmanufactures and the multinational Coca-Cola till 1976. From 1976 to 1989, theindustry only consisted of Indian manufacturers namely, Parle, Campa-Cola andDukes. Decade of nineties have brought changes in Government Policies ofLiberalization and Deregulation which has helped to usher in two huge Americanmultinational soft drink players- Pepsi Cola international and Coca Colainternational.

THE CHRONOLOGY OF SOFT-DRINK SCENARIO IN INDIA1977

Refusing to dilute its equity stake, Coca Cola winds up it operations in thecountry. Thums-Up from Parle and Campa-Cola from Pure Drinks launched.

1986 An application for a soft drink and snack food joint venture by Pepsi with Voltasand Punjab agro is submitted to the Indian Government.

1988 Final approval for the Pepsi food limited project granted by the Cabinetcommittee on economic affairs of the Rajeev Gandhi Government.

Coca-Cola South Asia Holding Incorporation of the U.S. files an application tomanufacture soft drinks concentrate in Noida (Delhi) Free Trade Zone.

1990 Pepsi Cola and 7 up launched in limited market in North Indian. The Government clears the Pepsi Project again but with the brand name changedto Lehar Pepsi. Simultaneously, it also rejects the application of Coke. Citra hitsthe market from the Parle Stable.

1991 Britco food files an application before Foreign Investment Promotional Board(FIPB) to set up a new 50 crore facility in Maharashtra.


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Pepsi extends its soft drink reach on national scale. Products launched in Delhiand Bombay.

Britco foods application cleared by the FIPB, Pepsi and Voltas start initialnegotiations for a strategic alliance but talks break after a while.

1993 Pepsi launches Teem and Slice to counter Limca and Maaza respectively fromParle. Pepsi captures about 30% market share in about two years.

Coke files an application for a 100% owned soft drinks Company with FIPB,Decides to part ways with Rajan Pillai.

The Government clears the Coke application in record time.

Voltas pulls out of the Pepsi Food Limited joint venture. Pepsi decides to buyoutthe Voltas share and raises its equity to 92% Report of Coke-Parle joint venturegain strength.

Pepsi launched 1 liter bottles in Pepsi Cola, Mirinda and Teem flavors. Sweepsoff the 100ml segment from Pure Drinks.

Coca-Cola buys out Parle and major leaders of the market, Ramesh Chauhan,becomes a part of the Coke game plan.

Fountain Pepsi launched in the Northern part of India. Coca-Cola hits the Indianmarket in 300 ml at the price of 250 ml.

2000 Coca Cola India has registered a growth of 18th percent in its net sale during thefirst quarter of the current fiscal year.

Hrithik the burning sensation of Bollywood is hired to advertise Coke is veryeffective.

2001 Coca Cola upgraded from 1.5 liter. to 2 liter bottles. With the changing retailscenario in India new marketing channel of Modern Trade is opened up.


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2010 Coke and Pepsi moves toward smaller towns and villages as rural income risesdue to rising farm productivity to capture this market. Coca cola India launches solar cooler to tap into the markets of unelectrified ruralvillages.

THE COCA COLA COMPANY

Coca-Cola Company is the worlds leading manufacturer, marketer and distributor

of non-alcoholic beverage concentrates and syrups, originated from Atlanta,

Georgia on May8, 1886, used to produce nearly 400 beverage brands. It sells

beverage concentrates and syrups to bottling and canning operators, distributors,

fountain retailers and fountain wholesalers. The Companys beverage productscomprises of bottled and canned soft drinks as well as concentrates, syrups and

ready-to-drink products. In addition to this, it also produces and markets sports

drinks, tea and coffee. The Coca Cola Company began building its global network

in the 1920s. Now operating in more than 200 countries and producing nearly 400

brands, the Coca-Cola system has successfully applied a simple formula on a

global scale: Provide a moment of refreshment for a small amount of money- a

Billion times a day. The Coca Cola Company and its network of bottlers comprise

the most sophisticated and pervasive production and distribution system in theworld. More than anything, that system is dedicated to people working long and

hard to sell the products manufactured by the Company. This unique worldwide

system has made The Coca Cola Company the worlds premier soft-drink

enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola sells

more than any other consumer product it has brought pleasure to thirsty consumers

around the globe. For more than 115 years, Coca Cola has created a special

moment of pleasure for hundreds of millions of people every day. The Company

aims at increasing shareowner value over time. It accomplishes this by working

with its business partners to deliver satisfaction and value to consumers through a

worldwide system of company owned and franchisee bottlers, thus increasing

brand equity on a global basis. They aim at managing their business well with

people who are strongly committed to the Company values and culture of

providing an appropriately controlled environment, to meet business goals and


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objectives. The associates of this Company jointly take responsibility to ensure

compliance with the framework of policies and protect the Companys assets and

resources whilst limiting business risks.

HISTORYCoca-Cola was first introduced by John Styth 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 Coca-Cola was first introduced by John Styth

Pemberton, a pharmacist, in the Year 1886 in 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 todaywherever Coca-Cola is enjoyed.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. 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.


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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 unsurpassedheights of commercial success, making Coca Cola one of the most recognized and

valued brands around the world.

LOGO DESIGN

The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank

Mason Robinson, in 1885.[60] Robinson came up with the name and chose the

logo's distinctive cursive script. The typeface used, known as Spenserian script,

was developed in the mid-19th century and was the dominant form of formalhandwriting in the United States during that period. Robinson also played a

significant role in early Coca-Cola advertising. His promotional suggestions to

Pemberton included giving away thousands of free drink coupons and plastering

the city of Atlanta with publicity banners and streetcar signs

COCA COLA INDIA

The Coca-Cola Company entered India in the early 1950s. It set up four bottlingplants at Bombay, Calcutta, Kanpur and Delhi.

In 1950 as there were negligible companies in Indian market therefore Coca-Coladid not face much competition and they were accepted in Indian market moreeasily. By the end of 1977 Coca-Cola had captured more than 45% of market sharein India. Then Coca-Cola left India following public disputes over share holdingstructure and import permit. As per FERA REGULATION the company wasrequired to India close operation by May 5, 1978 yet strongly enough the

companys operation comes to end in July 1977. In October 1993, Coca-Colareturned to India after 16 years of absence with the slogan Old waves havecome to India again first launched in HATHRAS near AGRA HOME of thefamous TAJ MAHAL.

At this time Parle was the leader in soft drink market and had more than 60% ofthe total market share in soft drink Coca-Cola joined hand with Parle and strategic


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alliance with Parle export give the company instant ownership of the nationtop soft drinks brands Thums-Up, Limca, Citra, Gold Spot and Maaza access toParles extensive 62 plant bottling network and a base for the rapid introductionof the companys international brand by striking a $40 million deal with ParleCoke almost a clear sweep and made it goal as To become an all occasion drinknot a special treat beverage.

HISTORY OF BOTTLING IN INDIA: -

1950-Coca Cola bottling plant opens in New Delhi. 1958-Concentrate plant opens in India. 1973-22 bottling plants operate in 13 states. 1977-Coca-Cola and 38 other companies refuse to dilute stake, formally

withdraws from Country in 1978. 1992-Re-enters India.

Coca Cola is made up of 7000 local employees, 500 managers, over 60manufacturing locations, 27 COMPANY OWNED BOTTLING OPERATIONS(COBO), 17 FRANCHISEE OWNED BOTTLING OPERATIONS (FOBO) and anetwork of 29 Contract Packers that facilitate the manufacture process of a rangeof products for the company. It also has a supporting distribution networkconsisting of 700,000 retail outlets and 8000 distributors. Almost all goods andservices required to cater to the Indian market are made locally, with help oftechnology and skills within the Company. The complexity of the Indian market isreflected in the distribution fleet which includes different modes of distribution,from 10-tonne trucks to open-bay three wheelers that can navigate through narrowalleyways of Indian cities and trademark tricycles and pushcarts.

ALL INDIA DIVISION COBOS ARE ISO 14001 CERTIFIED

All 25 of the Divisions Company-owned bottling plants have gained theinternational standard ISO 14001 Environment Management System certificate.

The ISO 14001 certificate is the internationally recognized standard ofEnvironmental Management. A company must demonstrate managementcommitment, the total involvement of all employees and a compliance withapplicable regulatory and internal company standards. Strict division compliancewith KO system ensured that the bottling plants were ready to meet the toughevaluation criteria and standards of the ISO auditors.


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MISSION, VISION AND VALUES

MISSION: - Coca Cola is preparing for tomorrow by creating a long term

destination for its business that provides it with a Road Map for winning together

with its bottling partners. Its road map starts with its mission which is enduring. Itdeclares its purpose as a company and serves as the standard against which it

weighs actions and decisions.

To refresh the world To inspire moments of optimism and happiness. To create value and make a difference.

VISION:- Coca Cola vision serves as the framework for its road map and guide

every aspect of our business by describing what it need to accomplish in order tocontinue achieving sustainable, quality growth.

People: - Be a great place to work where people are inspired to be the bestthey can be

Portfolio: - Bring to the world a portfolio of quality beverage brands thatanticipate and satisfy peoples desires and needs.

Partners: - Nurture a winning network of customers and suppliers, togetherthat create mutual, enduring value.

Planet: - Be a responsible citizen that makes a difference by helping buildand support sustainable development communities.

Profit: - Maximize long term return to share owners while being mindful ofour overall responsibilities.

Productivity: - Be a highly effective, lean and fast moving organization.COCA COLAS WINNING CULTURE: - Coca colas culture defines the

attitudes and behavior that will be required to make their 2020 vision a reality.

VALUES: - Coca colas values serve as a compass for their actions and describe

how they behave in the world.

Leadership: - the courage to shape a better future. Collaboration: - leverage collective genius


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Integrity: - be real. Accountability: - If it is to be, its uo to me. Passion: - Committed in heart and mind. Diversity: -As inclusive as our brands. Quality: - What we do, we do well.

FOCUS ON THE MARKET

Focus on needs of their 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. Work efficiently.

ACT LIKE OWNERS

Be accountable for their actions and in actions. Steward system assets and focus on building value. Reward their people for taking risks and finding better ways to solve

problems.

Learn from their outcomes - what worked and what didntBE THE BRAND

Inspire creativity, passion, optimism and fun.


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SWOT ANALYSIS:

SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a

technique much used in many general management as well as marketing scenarios.

SWOT consists of examining the current activities of the organization- itsStrengths and Weakness- and then using this and external research data to set out

the Opportunities and Threats that exist.

STRENGTHS:

Coca-Cola has been a complex part of world culture for a very long time. The

product's image is loaded with over-romanticizing, and this is an image many

people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts,

hats, and collectible memorabilia. This extremely recognizable branding is one ofCoca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around

the world Coca-Cola stands as a simple, yet powerful symbol of quality and

enjoyment" (Allen, 1995). Additionally, Coca-Cola's bottling system is one of their

greatest strengths. It allows them to conduct business on a global scale while at the

same time maintain a local approach. The bottling companies are locally owned

and operated by independent business people who are authorized to sell products

of the Coca-Cola Company. Because Coke does not have outright ownership of its

bottling network, its main source of revenue is the sale of concentrate to its

bottlers.

WEAKNESSES:

Weaknesses for any business need to be both minimized and monitored in order to

effectively achieve productivity and efficiency in their business activities, Coke is

no exception. Although domestic business as well as many international markets

are thriving (volumes in Latin America were up 12%), Coca-Cola has recently

reported some "declines in unit case volumes in Indonesia and Thailand due to

reduced consumer purchasing power." According to an article in Fortune

magazine, "In Japan, unit case sales fell 3% in the second quarter [of 1998]...scary

because while Japan generates around 5% of worldwide volume, it

contributes three times as much to profits. Latin America, Southeast Asia, and

Japan account for about 35% of Coke's volume and none of these markets are


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performing to expectation. Coca-Cola on the other side has effects on the teeth

which is an issue for health care. It also has got sugar by which continuous

drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola

also is a health problem, because drinking of Coca-Cola daily has an effect on your

body after few years.

OPPORTUNITIES:

Brand recognition is the significant factor affecting Coke's competitive position.

Coca-Cola's brand name is known well throughout 94% of the world today. The

primary concern over the past few years has been to get this name brand to be even

better known. Changes have also affected sales and industry positioning, but in

general, the public has tended not to be affected by new products. Coca- Cola's

bottling system also allows the company to take advantage of infinite growthopportunities around the world. This strategy gives Coke the opportunity to service

a large geographic, diverse area.

THREATS:

Currently, the threat of new viable competitors in the carbonated soft drink

industry is not very substantial. The threat of substitutes, however, is a very real

threat. The soft drink industry is very strong, but consumers are not necessarily

married to it. Possible substitutes that continuously put pressure on both Pepsi andCoke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-Cola

and Pepsi control nearly 40% of the entire beverage market, the changing health-

consciousness of the market could have a serious affect. Of course, both Coke and

Pepsi have already diversified into these markets, allowing them to have further

significant market shares and offset any losses incurred due to fluctuations in the

market. Consumer buying power also represents a key threat in the industry. The

rivalry between Pepsi and Coke has produce a very slow moving industry in which

management must continuously respond to the changing attitudes and demands oftheir consumers or face losing market share to the competition. Furthermore,

consumers can easily switch to other beverages with little cost or consequence.


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ORGANISATIONAL STRUCTURE OF COCA COLA INDIA


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PRODUCT PROFILE OF COCA COLA

1)COCA COLA: -Coca-Cola which is still

following the same traditional recipe used by

John Styth Pemberton, since 1886.It is the

most Recognized brand throughout the world,

available in more than 200 countries. It is

generally preferred by all sections of

consumer. In India it comes in the packaging

of 330 ml can, 200 ml and 300 ml returnable

glass bottles; 500+100 ml free, 1.5 litre & 2

litre PET bottles.

TAG LINE:- Coke Khule Toh Baat Chale.

2) THUMPS UP: -Thumsup is the leading

brand of cola among all its competitors. It is

hard in comparison to coke. It is preferred by

all section of consumers but especially to teen-

agers. It comes in the packaging of 330 ml

can, 200 ml and 300 ml returnable glass

bottles; 500+100 ml free, 1.5 litre & 2 litre

PET bottles.

TAG LINE:- Aaj Kuch Toofani Karte Hain


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3)SPRITE: -Sprite has achieved status of an

undisputed youth brand. Today Sprite is the

most preferred and fastest growing soft drink

in its segment. it comes in the packaging of

330 ml can, 200 ml and 300 ml returnable

glass bottles; 500+100 ml free, 1.5 litre & 2

litre PET bottles.

TAG LINE: -University Of Freshology

4) FANTA: -Fanta entered the Indian market

in the year 1993. It is orange flavor &

preferred by Children & Women. it comes inthe packaging of 330 ml can, 200 ml and 300

ml returnable glass bottles; 500+100 ml free,

1.5 litre & 2 litre PET bottles.

TAG LINE: - More Fanta Less Serious


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5) LIMCA: - Limca is considered to

be lemony in taste, and comes under

the category of cloudy lemon because of

its color, which is similar to that of clouds.

It comes in the packaging of 330 ml can,

200 ml and 300 ml returnable glass

bottles; 500+100 ml free, 1.5 litre & 2 litre

PET bottles.

TAG LINE: -Do Pal Taazgi.

6)MAAZA: - Maaza symbolizes the very

spirit of mangoes. Universally loved for its

taste, color, thickness and wholesome

properties, Maaza is the mango lover's first

choice. 200 ml and 250 ml Returnable Glass

Bottle; 500+100 ml free and 1litre+200 ml

free PET bottles and 200 ml Tetra Pack.

TAG LINE: -MAAZAlao aam ki pyaas

bujhao.


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7) MINUTE MAID PULPY

ORANGE: - The product is aimed to

further extend the leadership of Coca-

Cola in India in the juice drink category.Minute Maid Pulpy Orange comes in

400 ml and 1 liter PET bottles.

TAG LINE:- refreshingly orange,

surprisingly orange

8) MINUTE MAID NIMBU

FRESH:- Launched first in South of India

in January 2010, Minute Maid Nimbu Fresh

started refreshing the whole of India by

April 2010.Comes in 400ml PET.

TAG LINE: - Khatti Meethi Yaadon Ka

Ras.


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ADVANCE SALES AND SERVICES PRIVATE LTD

Advance Sales And Services Private Limited (ASSPL) is a Sales & Marketing

Head office Of Brindavan Beverages Pvt. Limited (BBPL) in Lucknow. Brindavan

Beverages Pvt. Ltd. (BBPL) is one of the major Bottlers of the Coca Cola

Company in India, operating in Uttar Pradesh. It has its Manufacturing unit in

Lucknow, Raibareilly, Barabanki, Lalitpur, Jhansi, Sitapur and Hardoi. ASSPL is

also a Depot from which the whole of Lucknow market are covered. Other two

depots are located inside Lucknow which caters to the markets of rest of Lucknow

and adjoining areas.

MARKETING DEPARTMENT.

The comprehensive marketing activity at Advance sales and Service private ltd. is

controlled by Mr. CHITRESH TIWARI (Marketing Head.). Today consumers

have different measurements to buy above which has a smaller self-life. The major

market of soft drink is under the grab of local distributions, which provides the

innocent consumers all the sort of connections. In such scenario educating the

consumer and winning confident with quality product is an uphill task because

traditions are different to break. Marketing department looks, after from loading of

bottles to suggestions, problems faced by customers. They have about 1200 retail

points for exclusive distribution, 18 wagons run for playing the products to their

9) KINLEY: - Kinley mineral water

and soda completes the product portfolio

of Coca Cola Company in India. Mineral

water comes in the packaging of 1 liter

and soda as 500 ml PET 300 ml

returnable glass bottles, 500+100 ml free

and 1.5 liter PET bottles.

TAG LINE: - Boond Boond Me

Vishwash.


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points. Retailers get their demands fixed on the telephone to the marketing

department, which is transformed into charts. Their demands are aggregated and

given to the personnel or supervisors at clock these personnel are of

production department. Right from the first year of the incorporation the company

is running in top profit. This is because of many reasons. One of them is being thatthere is no other bottling plant nearby. Also the company gives good margins to the

retailers along with various lucrative from time to time.

VARIOUS MARKETING DIVISIONS OF ASSPL ARE : -

GENERAL TRADE-As the name Suggest this division looks after the general

shops and stores of the city along with some eating and dining outlet.

MODERN TRADE-This division looks after the big shops and Malls of thecity and is also known as key accounts Department mainly because it forms the

biggest customer Base for the Company. In this division customer buy goods from

the company on thirty day credit and can do payment through cheques as well. For

Example: - Good Bakery, Big Bazaar etc.

RURAL TRADE- As the name suggests this Division is mainly responsible for

marketing coca cola products to rural areas and outside the main city area.

NEW PRODUCT DEVELOPMENTAgain as the name Suggest thisdivision is mainly responsible for Promoting new products into the Market. For

Example Coca cola has recently launched minute Maid 100% juice range in the

Market which comes in three Flavors apple, orange and grapes. This product is

quite new when compared to established players like PepsiCos Tropicana And

Dabur`s Real So New product Development has a Challenging job to promote and

penetrate Packaged juice market in Lucknow.

MARKETING PROCESS AT ASSPL

PRESALE CONCEPT

In this concept company takes order one day before and then delivers the product

to each route. So this gives more time to market developer to assure RED

compliance. This concept has following advantages-


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This gives more time to the market developer for the activation & branding

purpose.

By this company can easily implement the RED concept in better way

Presale concept makes assure of more availability of the products in the market.

This concept is easy in processing by this concept market developer can arrange

the product in better way.

The Company can display its products in proper way so that customers can attract

towards it.

PERMANENT JOURNEY PLAN (PJP)/ROUTE CARD

The P.J.P. plan is a day wise schedule of a market Developer which contains the

names of the outlets to be visited by him coming under R.E.D. where it has to be

implemented after getting permanent journey plan the next step was to visit the

outlets for gaining initial information of every individual outlet as well as market

on a whole. The visit to all the outlets of that area helped in revealing its market

condition. Visiting the outlets clearly showed the picture of the market situation

prevalent in market. This Route card has to be filled before visiting the market by

each market developer and Presale representative.

DAILY SALES REPORT

In this report details of various outlet visited is entered by the pre sale

representative/ market developer. It also helps in tracking market conditions of a

particular area and performance of particular market developer or pre sale

representative.

ORDER SHEET

In this Order of various Brands and SKU`s required by the particular outlet as perthe demand is entered from where it goes into office records. A copy of this order

sheet is given to depot manager who then dispatches these demanded products in a

delivery truck or trolley the very next day.


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TECHNIQUES USED BY THE ASSPL FOR INCREASING

SALES: - Good Advertising. Effective Incentive Policy. Quality. Wide & Deep Distribution System. Attractive packaging. Allotting SGAS (SALES GENERATING ASSETS) like Refrigerator,

Chest cooler, Table Umbrella, Chairs etc. to retailers.

Decorating Retailers shop by display board, dealers board etc.CRITERIA FOR PROVIDING FREE CHILLING EQUIPMENTS

With every 1-2 crates purchased daily or alternatively an icebox is provided. For an average purchase of 5-6 crates daily a visi-cooler is given For a purchase of 7-8 crates daily exceeds then large visi-cooler or deep

fridge is provided.

With every chilling equipment a stabilizer is provided it may be of 1KV or 5KV.

S.G.A (SALES GENERATING ASSETS) PROVIDING

COMPANIES

Whirlpool India Ltd. Godrej G.E. Appliances Ltd. Western Refrigeration Ltd. Rockwel Industries Ltd.

All these industries are enlisted and approved by Coca-Cola.

PROMOTION BY THE COMPANY: -


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All advertisement expenditure is incurred by Coca-Cola India, but only in DisplayBoards, Wall paintings, S.G.A.s etc. Company spends on it around 8-9 % totalsales company invested near about 400 crore rupees in advertisement Budget.

Radio.

T.V. Hoardings. Road signs. Sticker. Banners. Newspaper. Magazines. Exhibition. Posters.

Sponsoring local events.

DISTRIBUTION NETWORK OF COCA COLA INDIA

CCI has a wide and well managed network of salesmen appointed for taking up theresponsibility of distribution of products Coca Cola India has a wide and wellmanaged network of salesmen appointed for taking up the responsibility ofdistribution of products to diverse parts of the cities. The distribution channels areconstructed in such a way that the demand of customers is fulfilled at the rightplace and the right time when it is needed by them.A typical distribution chain at CCI would be:Production----Plant Warehouse----Depot Warehouse---Distribution----Warehouse----Retail Stock----Retail Shelf---- Consumer.The customers of the Company are divided into different categories and differentroutes, and every salesman is assigned to one particular route, which is to befollowed by him on a daily basis. A detailed and well organized distributionsystem contributes to the efficiency of the salesmen. It also leads to low costs,higher sales and higher efficiency thereby leading to higher profits to the firm.

DISTRIBUTION ROUTES

The various routes formulated by Coca Cola India for distribution of products areas follows:

KEY ACCOUNTS: The customers in this category collectively contribute alarge chunk of the total sales of the Company. It basically consists of organizations


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that buy large quantities of product in one single transaction. The Companyprovides goods to these customers on credit, payments being made by them after acertain period of time i.e. either a month of half a month. Examples: Clubs, finedine restaurants, hotels, Corporate houses etc.

FUTURE CONSUMPTION: This route consists of outlets of Coca-Colaproducts, wherein a considerable amount of stock is kept in order to use for futureconsumption. The stock does not exhaust within a day or two, instead as and whenrequired stocks are stacked up by them so as to avoid shortage or non-availabilityof the product. Examples: Departmental stores, Super markets etc.

IMMEDIATE CONSUMPTION: The outlets in this route are those whichrequire stocks on a daily basis. The stocks of products in these outlets are notstored for future use instead, are exhausted on the same day and might run a little

into the next day i.e. the products are consumed at a fast pace. Examples: Smallsized bars and restaurants, educational Institutions etc.

GENERAL: Under this route, all the outlets that come in a particular area or anarea along with its neighboring areas are catered to. The consumption period is nottaken into consideration in this particular route.

DISTRIBUTION SYSTEM

DIRECT DISTRIBUTION: In direct distribution, the bottling unit or the

bottler partner has direct control over the activities of sales, delivery, andmerchandising and local account management at the store level.

INDIRECT DISTRIBUTION: In indirect distribution, an organization whichis not part of the Coca-Cola system has control on one or more of the distributionelements (Sales, delivery, merchandising and local account management).

MERCHANDISING: Merchandising means communication with theconsumer at the point of purchase to convey product benefit, value and Quality.

Sales people and delivery personnel both have this responsibility. In certainlocations special teams who go into business locations to specifically merchandiseour products.

DEPARTMENTS INVOLVED IN THE DISTRIBUTION

PROCESS


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The Distribution process mainly consists of three departments:

DISTRIBUTION DEPARTMENT: It appoints distributors and establishes adistribution network, processes approved sale orders and prepares invoices,

arranges logistics and ship products, co-ordinates with distributors for collectionsand monitors distribution stocks and their set-up.

FINANCE DEPARTMENT: It checks credit limits and approves sales ordersin compliance with the credit policy followed by the firm, records collections fromdistributors, periodically reconciles outstanding balances from distributors, obtainsbalance confirmation from distributors and follows up outstanding balances

SHIPPING OR WAREHOUSING DEPARTMENT: It dispatches goodsas per approved by order, ensures that stocks are dispatched on a FIFO basis,ensures physical control over load out area and updates warehouse stock records ina timely manner.

CHANNELS

GROCERY Outlet primarily engaged in retailing of food & varioushousehold items. It includes Grocers (Outlets dealing mainly in grains, provisions,spices, edible oil, vanaspati etc.) and General Stores (Outlet selling items of dayto day requirements & stocking a variety of branded products)

E&D TYPE 1Outlet selling items of eat which are being consumed primarilystanding in the outlet or being taken away for Future Consumption. Does Not HavePlace To Sit. It includes bakery / sweet shops/ QSR / juice centers / soft drinkshops/ Tea shops etc.

E & D type 2Outlet selling items of eats which are being cooked/made withinoutlet possibility of consuming those products within the outlet. The Outlet shouldhave A Place to Sit. It includes Sit down restaurants / Bars

/ Dhabas / Cafes etc.

CONVENIENCE- includes outlets which are small stores, generally accessiblelocally. These are often located alongside busy roads. It includes Chemists / STDBooths / PANBeedi shops, etc.


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CLASS

BRONZE- Those outlets, which sells


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HORIZONTAL EXPANSION

Expansion of business capacity through the absorption of facilities or

buildings as well as through the acquisition of new equipment to handle an

increased volume in sales in which the business is already engaged. In

microeconomics and strategic management, the term Horizontal Expansion

describes a type of ownership and control. It is a strategy used by a business or

corporation that seeks to sell a type of product in numerous markets. Horizontal

Expansion in marketing is much more common than Vertical Expansion is in

production. Horizontal Expansion occurs when a firm is being taken over by, or

merged with, another firm which is in the same industry and in the same stage of

production as the merged firm, e.g. Pepsi has adopted strategy of VerticalExpansion by which Pepsi wants to improve its sale from Coke monopoly outlets,

means Cokes monopoly outlets are being taken over by Pepsi now in this

condition to improve its sale Coke need to open new outlets which is called

Horizontal Expansion Strategy. A monopoly created through Horizontal Expansion

is called a Horizontal Monopoly. This is the expansion of a firm within an industry

in which it is already active for the purpose of increasing its share of the market for

a particular product or service.

REASON OF HORIZONTAL EXPANSION

The ultimate objective of coke is to acquire more customers and serve them

properly. While doing Horizontal Expansion take care to the competitors strategy.

The main competitor is PEPSI, who has opted Vertical Expansion to generate more

sell however Coke do not believe on Vertical Expansion because Vertical

Expansion has limited preview so COKE is great believer in Horizontal

Expansion and this strategy helped to the company to maintain its leadership in thesoft drink industry. India is a big country having diversified taste and appearance

and same character is reflected in their demography. Horizontal Expansion helps

the company to serve the more people and more customers touch point

because in the waste country many customers commutes.


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BENEFITS OF HORIZONTAL EXPANSION:

PROVIDES INCREMENTAL VOLUME & REVENUE FOR

BUSINESS: - By horizontal expansion there will be more outlets of our product

in the market which will sell our product in more quantity. This will generate

incremental revenue for the business.

HELPS IMPROVE ROUTE PRODUCTIVITY: - There are pre

determined routes through which product is transported and delivered at the coke

outlets. If we open more outlets on the routes it will increase the

productivity because more outlets will be covered and more product will be

delivered with a negligible increase in time and efforts. Hence it will improveproductivity of the route.

IMPROVES PROFITABILITY: -Increases profitability of our Distributors

Expenses on routes and delivery of product are incurred by the distributers.

Opening new outlets will give more revenue to our distributors also. With the

increase in route productivity will improve profitability of the distributors.

REDUCED DEPENDENCE ON LARGE CUSTOMERS: - We know

that coke products have a very good demand. To comply with this we have toprovide large amount of supply. In case we have few outlets a large amount of

stock is gathered at few retailers. In this case they become monopolistic and

demand many things like coolers refrigerators discounts margins etc. from the

company. So it is very necessary to reduce dependence on large retailers by

opening new outlets.

INCREASE MARKET VISIBILITY: - Selling at more outlets give more

market visibility of the product which gives higher product recognition and brand

value to the products.

ADVANTAGE OF HORIZONTAL EXPANSION OVER

VERTICAL EXPANSION:


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Both expansion techniques are meant for increasing sales volumes. But inhorizontal expansion company can earn more profits by spending less. Lets seethe profit story of horizontal expansion.

IMPACT OF NEW OUTLETS ON BUSINESS


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Above tables clearly indicate the importance of opening new outlets. By doingvertical expansion only growth in profit was not very effective but because ofopening just 200 new outlets sales increased to a large extent. Total profit margin

and return on investment also increased.

RESEARCH METHODOLOGY

This research involved a study, which was descriptive in nature it basically aims atgathering data about how the coca-cola scheme playing in the mind of shopkeepers& consumer. The methodology used to analyze the project is mainly based onsurvey method and this survey was conducted through Questionnaires and it alsoinclude direct contact with grocery retailer, convenience store, eating and drinkingand consumer. For survey sample size was taken from different location ofLucknow and it was covered with the help of market developer and key accountmanager of the Advance Sales & Service Private Limited.

RESEARCH DESIGN:A research design is purely and simply the work or plan for a study that guides thecollection and analysis of the data. I have chosen descriptive research design forstudy.

SAMPLING:Sampling studies are becoming more and more popular in all types of mass study.The result of sampling has attained a sufficiently high standard accuracy

SAMPLE DESIGN: Non random sampling

SIZE OF SAMPLE: 250

SAMPLING UNIT: The retailer of Grocery shop, general store, betel shop,

and medicine store was selected from different places of Lucknow.

SOURCES OF DATA COLLECTIONThe data are collected from primary and secondary sources.

PRIMARY SOURCES


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Gather information through Questionnaire.SECONDARY SOURCES

www.Coca-Cola.com,

www.wikipedia.com, www.coca-colaindia.com Activation booklet of the coca-cola.

LIMITATIONSAlthough all efforts have been taken to make the results of survey as accurate aspossible but the survey suffers from the following limitations:

The time period of study was only for two month so it was not possible tocover all the areas and go into the depth of the problem and make analysis.

The area of survey was Lucknow district and it was concentrated on urbanarea only.

The psychological condition varies from place to place because in manyplaces outlet owner was not supportive.

Some respondents left some of the questions unanswered either due toinability to put a strain on mind or they did not know the answer.

TRAINING ACTIVITES To see as a Market developer (M.D.) if any outlet is likely to sell our

product.

Approach to that that outlet and provide them information about the sellingofCoca Colas products

To cover maximum outlet as we can who are not selling Coca Colasproduct

Persuade them to start selling Coca Colas products Provide them knowledge of various schemes and benefits that they will get

on selling Coca Colas products

If not convinced in a single attempt, try again to convert them after few daysgap.

Also try to convert those outlets into Coca Colas outlet who presently areselling Pepsis products If not convinced in number of trials, keep the outlet owner motivated

towards the brand name of Coca Cola.


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DATA ANALYSIS

1) What Type of Channel do you hold?

E&D 30%

GROCERY 45%

CONVINIENCE 20%

OTHERS 5%

INTERPRETATION:- from the above presentation of data It is been shown

that Grocery store are more present in the Lucknow city followed by E&D.

2) If there are no drinks in the outlet, Are you willing to sell soft drinks?

YES 65%

NO 25%

DONT KNOW 10%

0%

5%

10%

15%20%

25%

30%

35%

40%

45%

Series1


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INTERPRETATION: -From the above presentation of data It is been shown that most of the people areready to sell soft drinks if there are no drinks in the outlet.

3)Is there any chilling equipment present?OWN FREEZE 10%

OWN FREEZER 5%

PEPSI'S FRIDGE 10%

NO 75%

INTERPRETATION: -From the above presentation of data it is been shown that most of the people donthave any freezing equipment.

0

10

20

30

40

50

60

70

YES NO DONT KNOW

Series1

0

10

20

30

40

50

60

70

80

OWN FREEZE OWN

FREEZER

PEPSI'S

FRIDGE

NO

Series1


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4) The first and mostly preferred soft drink company?

COCA COLA 63%

PEPSI 35%

PARLE 2%

OTHER 0%

INTERPRETATION: -From the above presentation of data it is been shown that coca cola is the mostpreferred brand.

5) Why did you give more preference to Coca Cola?BRAND NAME 15%

BETTER MARKET SHARE 35%

BEST OFFERS 10%

ALL OF THE ABOVE 40%

0

10

20

30

40

50

60

70

COCA COLA PEPSI PARLE OTHER

Series1


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INTERPRETATION: -From the above presentation of data it is been shown

that all the factors are being considered for preferring coca cola over other brands

of soft drinks.

6) If the preference is Coke Cola then which product you prefer more?COCA COLA 10%

THUMPS UP 40%

MAAZA 15%

SPRITE 20%

FANTA 5%

LIMCA 4%

MINUTE MAID NIMBU FRESH 2%

MINUTE MAID PULPY ORANGE 4%

0

5

10

15

20

25

30

35

40

BRAND

NAME

BETTER

MARKET

SHARE

BEST OFFERS ALL OF THE

ABOVE

Series1


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that Thumps Up is one the bestsellers under the umbrella of brand Coca Colafollowed by Sprite.

7) Which pack attracts the retailers to open the outlet?

RGB 50%

PET BOTTLES 40%

TETRA PACKS 2%

CANS 8%

INTERPRETATION: -From the above presentation of data it is been shownthat RGB and Pet Bottles are the highest in demand in the market.

05

10

152025303540

Series1

0

5

1015

20

25

30

35

40

45

50

RGB PET BOTTLES TETRA PACKS CANS

Series1


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8) Which of the following promotions affect the opening and retaining of outlets?

SCHEME 40%

CASH REFUND 35%

PRICE BACK 25%

INTERPRETATION: -From the above presentation of data it is been shownthat Schemes attract most of the openings and retaining followed closely by Cash

Refunds and Price Back.

9) Which type of fridge you wish to have in your outlet?

SINGLE DOOR NON VISICOOLER 15%

SINGLE DOOR VISICOOLER 30%

DOUBLE DOOR VISICOOLER 55%

0

5

10

15

20

25

30

35

40

SCHEME CASH REFUND PRICE BACK

Series1


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that Double Door fridges are emphasized more by the retailers.

10) Whats your response to the scheme of providing you a whirlpool fridge andthree karats cold drinks in 8000/- in cash for opening a new outlet?

GOOD 55%

BAD 40%

NEUTRAL 5%

0

10

20

30

40

50

60

SINGLE DOOR

NON VISICOOLER

SINGLE DOOR

VISICOOLER

DOUBLE DOOR

VISICOOLER

Series1

0

10

20

30

40

50

60

GOOD BAD NEUTRAL

Series1


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INTERPRETATION: -From the above presentation of data it is been shownthat most of the people thought that it was a good deal but same time offended bymany people.

11) What else scheme should be provided for a new outlet to sell the Coca Colascold drinks?

INSTALLMENT 29%

FREE OF COST 50%

CREDIT AS PER SALES 21%

INTERPRETATION: -From the above presentation of data it is been shownthat Free of Cost schemes would be preferred more over any other scheme.

12)Do you think that the business of these soft drinks is seasonal?YES 45%

NO 35%

NEUTRAL 20%

0

5

10

15

20

25

30

35

40

45

50

INSTALLMENT FREE OF COST CREDIT AS PER

SALES

Series1


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that they feel positive about the sales affected by seasons.

13)According to you which of the following offer will benefit your business?

FREE BOTTLES 45%

LESS MRP ON PURCHASE 50%

GIFT VOUCHERS 5%

INTERPRETATION: - From the above presentation of data it is been shownthat Less MRP on purchase and Free Bottles both will benefit the customers moreor less.

0

5

10

15

20

25

30

35

40

45

YES NO NEUTRAL

Series1

0

5

10

15

20

25

30

35

40

45

50

FREE BOTTLES LESS MRP ON

PURCHASE

GIFT VOUCHERS

Series1


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14) Are you satisfied with the margins given by the company?

YES 53%

NO 31%

NEUTRAL 16%

INTERPRETATION:From the above presentation of data it is been shownthat most of the people who are satisfied by the margins but at same time many of

them are not.

15) Which service you think is very important for a retaining an outlet?

PRODUCT DELIVERY AT RIGHT TIME 20%

BEHAVIOUR OS SALESMAN 2%

VISIT FREQUENCY OF SALESMAN 3%

REGULAR SCHEMES 9%

ALL OF THE ABOVE 66%

0

10

20

30

40

50

60

YES NO NEUTRAL

Series1


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that all the services regarding product and its services are required to retain anoutlet.

FINDINGS

From the above analysis, it is found out that Grocery store 45% are morethan other type of channel outlets, so focus is to be given more on Grocery

stores.

65% of the 250 outlets surveyed are interested and willing to sell coca colasproducts.

75% of the outlets surveyed dont have any sort of cooling equipment withthem in their outlets.

Coca cola is preferred by the 63% of outlets owners when it comes to theselling of cold drinks.

Coca Cola is preferred generally because of its market share in the cityfollowed by the brand name and the offers provided by it.

Thumps up 40% are the most demanded product in the present marketfollowed by the sprite 20%, maaza 15% and coca cola 10%. .

RGB attract more than any other type of bottles in opening of a new outlet as50% retailers said so.

Schemes contribute 40% in opening and retaining of an outlet followed bycash refund 25%.

0

10

2030

40

50

60

70

Series1


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55% of the retailers want to have double door visicooler in their outlet. The scheme given by the company for opening of a new retail outlet is a

good scheme as 55% of the 250 retailers have agreed to that.

50 % of retailers wish to have fridge free of cost provided by the Coca Colaitself.

45% of the retailers think that sales of cold drink are seasonal while 35%dont agree.

Half of the retailers want less MRP on purchase of cold drinks from CocaCola.

53% of the retailers are satisfied with the margins given on the purchases ofthe cold drinks from Coca Cola.

Product delivery at right time, behavior of salesman, visit frequency ofsalesman and regular schemes all play a major part in opening and retainingan outlet.

SUGGESTIONS:-

Focus should be given on converting more E&D shops into those shopswhere coca cola can be made available to public.

Various promotional schemes should be given to the retailers in order tomake them sell Coca Cola.

Since majority of retailers choose to have double door visicooler fridge intheir outlets, so scheme should be made and provided to the outlet owners

for making them to sell Coca Cola cold drinks.

Fridge should also be provided on installment and credit basis to the outletowners instead of focusing on giving them in cash.

Since majority of them think that selling cold drinks are seasonal, so variousother measures should be taken in order to make them understand the

benefits and the margins they will get on selling cold drinks overall in ayear.

More schemes should be given on per carets basis so that the outlets ownerscan purchase and sell more and more of Coca Colas cold drinks.

They should deepen the partnership agreement with suppliers anddistributors and make them feel as a part of the company.


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RECOMMENDATIONS:-

Regular visit to distributors by middle level managers to understand groundrealities of the market

Sales promotion and advertising to be made more frequent for brandbuilding. Communications should be improved between shopkeeper and presale

representative.

On Minute Maid juices labeling should be more elaborate about nutritionalvalue as in Tropicana juices

Outlets which are performing consistently should be rewarded with specialincentives and schemes.

Company should adopt relationship marketing strategy and try to establishlong term relationship with shopkeepers, retailers and outlet owners as theyare the once who push the sale of companys products.

CONCLUSION:-

The outlet owners should be motivated more and more by the M.D (marketdeveloper) by giving them various promotional schemes as every outlet

owners want more benefits on less cost.

Coca Cola should deepen the partnership agreement with suppliersand distributors and make them feel as a part of the company.

Same schemes should be provided to every outlet owner and in every cornerof the city as at present schemes differ place to place and time to time.

Various advertising elements like Table Top, Glow Shine Board, Hanger;Road Stand should be provided to the retail outlets so that customers can

know where they can get Coca Cola cold drinks.


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ANNEXURE

QUESTIONNAIRE

Outlet name: -

Location: -

Mobile no.: -

1) What Type of Channel do you hold?E&D [ ] Convenience [ ] Grocery [ ] Others [ ]

2) If there are no drinks in the outlet, are you willing to sell soft drinks?Yes [ ] No [ ] Dont know [ ]

3) Is there any chilling equipment present?Own freeze [ ] Own Freezer [ ] Pepsis Fridge [ ] No [ ]

4) The first and mostly preferred soft drink company?Coca cola [ ] Pepsi [ ] Parle [ ] Others [ ]

5) Why did you give more preference to Coca Cola?Brand name [ ] Better Market Share [ ] Best Offers [ ] All of the above [ ]

6) If the preference is Coke Cola then which product you prefer more?Coca Cola [ ] Thumps Up [ ] Sprite [ ] Fanta [ ] Maaza [ ] Limca [ ]

Minute Maid Nimbu Fresh [ ] Minute Maid Pulpy Orange [ ] Kinley [ ]

7) Which pack attracts the retailers to open the outlet?RGB [ ] Tetra Packs [ ] Pet Bottles [ ] Cans [ ]


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8) Which of the following promotions affect the opening and retaining ofoutlets?

Scheme [ ] Cash Refund [ ] Price Back [ ]

9) Which type of fridge you wish to have in your outlet?

Single Door Non Visicooler [ ] Single Door Visicooler [ ] Double DoorVisicooler [ ]

10) Whats your response to the scheme of providing you a whirlpool fridgeand three karats cold drinks in 8000/- in cash for opening a new outlet?

Good [ ] Bad [ ] Neutral [ ]

11) What else scheme should be provided for a new outlet to sell the CocaColas cold drinks?

Installment [ ] Free Of Cost [ ] Credit As Per Sales [ ]

12) Do you think that the business of these soft drinks is seasonal?

Yes [ ] no [ ] Neutral [ ]

13) According to you which of the following offer will benefit your business?

Free bottles [ ] Less Mrp On Purchase [ ] Gift Vouchers [ ]

14) Are you satisfied with the margins given by the company?

Yes [ ] no [ ] Neutral [ ]

15) Which service you think is very important for a retaining an outlet?

Product Delivery at Right Time [ ] Behavior of Salesman [ ] Visit Frequency ofSalesman [ ] Regular Schemes [ ] All of the Above [ ]


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BIBLIOGRAPHYREFERENCE: Marketing Research: Naresh Malhotra Marketing Management: Philip Kotler

Research Methodology: C. R. Kothari www.coca-colaindia.com www.cocacola.com

Coca Cola - Ina

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