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A study on Market Segmentation Model

RIGHT EXECUTION DAILY (RED)

(With reference to Hindustan Coca-Cola Beverages Private Limited,

Vishakhapatnam)

A Project report submitted to Gitam Institute of International Business,

Vishakhapatnam in partial fulfillment for the award of the degree

MBA(International Business) completion certificate

Submitted by

Reddy V Surya Chaitanya

1226109241

Section-B

MBA (International Business)

GITAM INSTITUTE OF INTERNATIONAL BUSINESS


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DECLARATION

I (Reddy V Surya Chaitanya) hereby declare that this project work on RIGHT

EXECUTION DAILY with reference to Hindustan Coca-Cola Beverage Private

Limited Vishakhapatnam submitted by me is my own work and have not been

submitted to any other University or Institute or published earlier


REG NO: 1226109241

MBA (IB)



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PREFACE

Market segmentation is an integral part of marketing. Here, Coca Cola the leading brand in soft drinks

worldwide. Coke has maintained its brand image with high precision. The marketing strategy of Coke is

very stringent than others. The main features in their marketing by their offerings and its sales and

distribution.

Its my gratitude to work with Coca Cola Company especially in marketing depar tment. I have been

placed their in sales and distribution department for my internship.

In the beginning the main reason for conducting this study was to know the proper allocation of

distribution to the suppliers and also to know about the products sales.

Further, it is to understand the availability of the product and to check out that there is the proper

advertising of the product and also to know the working condition of the visi cooler provided by the

company.

Also to know the various scheme provided by the Coca Cola is really applied in the market or not and to

compare the schemes with Pepsi products.

The study is done to understand the problem of the retailers, and understanding the pre-sale concept

and implementation of right execution daily


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ACKNOWLEDGEMENT

At the outset, I would like to thank GITAM Institute of International Business for giving me an

opportunity to expand the horizon of my knowledge about the carbonated non-alcoholic

beverage sector by doing this summer project. I am grateful Mr.Srinivasu (Human Resource

Manager) and Y.Krishna Kishore (Market Executive of RED) of Coca-Cola Vizag for their

encouragement and generous assistance

I am deeply indebted to my faculty guides Dr.D.Ravinath & M.V.Lakshmi, coordinating the

project work and giving personal encouragement and gracious contributions of time, counsel

and materials.

I sincerely thank Mr.Shankar(Market Developer Dabagardens), Mr T.Srinivas(Market Developer

Poorna market) and Mr Sivaji (Market Developer K.G.H) of Coca-Cola who assited me in my

route visits and market survey with patience. I also thank Mr. Surya Narayana (Market

Executive) who has extentded his cooperation and encouraged me.

A heartfelt thanks to respondents surveyed whose ideas, critical insights and suggestions were

invaluable in the preparation of this report.


MBA (IB)



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CONTENTS

Topic Page number

Chapter 1- A THEOROTICAL FRAMEWORK 8-171.1RED CONCEPT 91.2TYPES OF OUTLETS 121.3SEGMENTATION MODEL OF COCA-COLA 141.4MEASURING PERFORMANCE OF RED 151.5PJP 16

Chapter2- METHODOLOGY O STUDY 18-222.1 OBJECTIVES OF STUDY 19

2.2 SCOPE OF THE STUDY 19

2.3 SIGNIFICANCE OF STUDY 20

2.4 RESEARCH METHODOLOGY 21

2.5 SAMPLING PLAN 22

CHAPTER-3 INDUSTRY PROFILE & ORGANIZATIONAL PROFILE 23-513.1 BEVERAGE AND ITS CONCEPTUAL ANALYSES 24

3.2 INDUSTRY PROFILE 27

3.3 INDUSTRY PROFILE IN INDIAN CONTEXT 34

3.4 COMPANY PROFILE 45

CHAPTER-4 ANALYSES OF DATA 52-684.1 MARKET SHARE 53

4.2 CUSTOMER DEMAND 54

4.3 FREQUENCY OF PLACING ORDER 55

4.4 NO. OF CASES PER ORDER 56

4.5 RETAILERS WITH COOLERS 57

4.6.1 TYPE OF COOLER 584.6.2 CAPACITY OF COOLER 58

4.6.3 PRIME POSITION 59

4.6.4 BRAND ORDER 59

4.6.5 PURITY 60


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CONTENTS

TOPIC PAGE NO.

4.6.6 OTHER COOLER 60

4.6.7 MD ADJUSTING AND CLEANING COOLERS 61

4.7 OUTLET CATEGORY 62

4.8 ACTIVATION ELEMENT 63

4.9 RETAILERS PREFERENCE FOR SELLING COCA-COLA 64

4.10 COMPARATIVE STUDY OF COCA-COLA & PEPSI 65

4.11 MARKET DEMAND FOR VARIOUS FLAVOURS 66

4.12 RETAILERS OPINION ON 350ML EXPRESS PACK 67

4.13 IMPACT OF 350ML ON 200 AND 600ML 68

CHAPTER 5- FINDINGS,SUGGESTIONS,LIMITATION& CONCLUSION 69-74

5.1 FINDINGS 70

5.2 SUGGESTIONS 71

5.3 LIMITATIONS 72

5.4 CONCLUSION 73

ANNEXURE 74-75 REFERENCES 76


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LIST OF CHARTS

TOPIC PAGE NO.

4.1 MARKET SHARE 53

4.2 CUSTOMER DEMAND 54

4.3 FREQUENCY OF PLACING ORDER 55

4.4 NUMBER OF CASES PER ORDER 56

4.5 RETAILERS WITH COOLERS 57

4.6.1 TYPE OF COOLER 58

4.6.2 CAPACITY OF COOLER PRESENT 58

4.6.3 PRIME POSITION 59

4.6.4 BRAND ORDER 59

4.6.5 PURITY 60

4.6.6 OTHER COOLER 60

4.6.7 MD ARRANGING THE COOLER 61

4.7 OUTLET CATEGORY 62

4.8 ACTIVATION ELEMENTS 63

4.9 RETAILERS PREFRENCE FOR SELLING COCA-COLA 64

4.10 COMPARATIVE STUDY OF PEPSI AND COCA-COLA 65

4.11 MARKET DEMAND FOR VARIOUS FLAVOURS 66

4.12 RETAILERS OPINION ON 350ML 67

4.13 IMPACT OF 350ML ON 200 AND 600ML 68


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Chapter: 1

A THEORETICAL FRAME

WORK


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Chapter 2

METHODOLOGY OF STUDY

2.1OBJECTIVES OF STUDY

The main objective of this RED project is to increase the sales of the company.

To advertise the various products of the company. To find out the present sales status of Thumsup, Coke, Sprite, Limca, Fanta, Maaza at

the retail outlets in the area..

To collect data from retailers for the activation of new channels of distribution.


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To study the pre-sale concept of the coke. To ensure the availability and visibility of the product. To analyze the effect of scheme2.2SCOPE OF THE STUDY

By this study company can know its growth. This study helps the company to know their actual position in the market. RED helps to find out the promotion activities of the company and help to make

relevant changes according to their rivalry company.

This study ensures the availability of the product in the market. The study helps to find out the problem of the counter and to find out the requirement

for more sales.

RED helps to maintain the outlets in a well designed way to attract the consumers.

2.3 SIGNIFICANCE OF THE STUDY

This project is helpful to find out the sale trends of the coke products and its effect onconsumer value and satisfaction.

This study provides an insight to the company that what kind of strategy must beadopted in order to increase the sales and satisfaction o the consumer.


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This project directly deals with the interaction of different kind of people. This study is helpful to find out the sales trends of the Coke products and its effect on

consumers value and satisfaction

This study provides an insight to the company that what kind of strategy must beadopted in order to increase the sales and satisfaction of consumers.

2.4RESEARCH METHEDOLOGY

The research includes the study which was descriptive in nature.It basically aims about how coke

schemes plays in the mind of shopkeepers and the consumers.

The study includes two methods-


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(a)PRIMARY

(b)SECONDARY

Primary includes the following ways-

Observation

Experiment

Survey

Here we include the primary method of survey

Research Instruments-

Questionnaire-A printed questionnaire was there to make the survey.

Area of Survey-Dabagardens, KGH area and Poorna market

2.5 Sampling plan

Sampling unit: Owners of the retail outlets.

Sampling size: 100 outlets

Sampling procedure: Simple Random sampling


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Sampling Method: Data is collected by retailer survey. The retailers are directly contacted and

interviewed at their retail counter.


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Chapter 3

INDUSTRY PROFILE AND

ORGANISATION POFILE

3.1 BEVERAGE ITS CONCEPTUAL ANALYSES

Definition of Beverage

A drink, or beverage, is a liquid specifically prepared for human consumption. In addition to basic needs,

beverages form part of the culture of human society.

Types of Beverage


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Water

Despite the fact that most beverages, including juice, soft drinks, and carbonated drinks, have some

form of water in them; water itself is often not classified as a beverage, and the word beverage has been

recurrently defined as not referring to water.

Essential to the survival of all organisms, water has historically been an important and life-sustaining

drink to humans. Excluding fat, water composes approximately 70% of the human body by mass. It is a

crucial component of metabolic processes and serves as a solvent for many bodily solutes. Health

authorities have historically suggested at least eight glasses, eight fluid ounces each, of water per day

(64 fluid ounces, or 1.89 liters), and the British Dietetic Association recommends 1.8 litters. The United

States Environmental Protection Agency has determined that the average adult actually ingests 2.0 liters

per day.

Distilled (pure) water is rarely found in nature. Spring water, a natural resource from which much

bottled water comes, is generally imbued with minerals. Tap water, delivered by domestic water

systems in developed nations, refers to water piped to homes through a tap. All of these forms of water

are commonly drunk, often purified through filtration.

Alcoholic Beverages

An alcoholic beverage is a drink containing ethanol, commonly known as alcohol, although in chemistry

the definition of an alcohol includes many other compounds. Alcoholic beverages, such as wine, beer,

and liquor have been part of human culture and development for 8,000 years.

Non-alcohol Beverages

Non-alcoholic beverages are drinks that would normally contain alcohol, such as beer and wine but are

made with less than .5 percent alcohol by volume. The category includes drinks that have undergone an

alcohol removal process such as non-alcoholic beers and de-alcoholized wines.

Non-alcoholic Variants:

a. Low alcohol beer


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b. Non-alcoholic winec. Sparkling cider

Soft Drinks

The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard drink" and theterm "drink", the latter of which is nominally neutral but often carries connotations of alcoholic content.

Beverages like colas, sparkling water, iced tea, lemonade, squash, and fruit punch are among the most

common types of soft drinks, while hot chocolate, hot tea, coffee, milk, tap water, alcohol, and

milkshakes do not fall into this classification. Many carbonated soft drinks are optionally available in

versions sweetened with sugars or with non-caloric sweeteners.

Hot Beverages

Hot beverages, including infusions. Sometimes drunk chilled.

Coffee-based Beverages

o Cappuccinoo Coffeeo Espressoo Caf au laito Frappo Flavored coffees (mocha etc.)o Latte

Hot Chocolate

Hot Cider

o Mulled ciderGlhwein

Tea-based Beverages

o Flavored teas (chai etc.)


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o Green teao Pearl milk teao Tea

Herbal Teas

Roasted Grain Beverages

Other: Some substances may either be called food or drink, or accordingly be eaten with a spoon or

drunk, depending on solid ingredients in it and on how thick it is, and on preference:

Soup Yogurt

(Greenhalgh, Alison)

3.2 INDUSTRY PROFILE

Industry Overview

The soda drink and bottled water industry in the US includes about 3,000 companies that manufacture

and distribute beverages, with combined annual US revenue of $70 billion. Coca-Cola and PepsiCo hold

more than 50 percent of the market, following strong consolidation in the past decade. Only a few other

companies have annual revenue above $500 million. Most are local or regional manufacturing and

bottling operations with annual revenue under $100 million.


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Competitive Landscape

Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of

individual companies depends on effective marketing. Large manufacturers have economies of scale in

production and distribution, with average annual revenue per production worker close to $1 million.Small companies can compete by producing new products, catering to local tastes, or selling at lower

prices.

Products, Operations & Technology

Nonalcoholic beverages include sodas (carbonated soft drinks, or CSD), bottled waters, juices, and a

large variety of mixtures. Sodas account for about 60 percent of the market. The manufacture and

distribution of most national soda brands, including Coke and Pepsi, is a two-tiered process. The primary

manufacturer produces flavored syrup called concentrate that is sold to local bottlers who manufacture

and distribute the finished product. In a typical bottling operation, the flavored syrup, corn syrup

(sugar), and filtered water are mixed in appropriate proportions, carbon dioxide gas is injected, and the

finished soda product is poured into bottles or cans, which are capped, labeled, and packaged.(Beverage

Manufacture and Bottling:2008).

HISTORY

Soft drinks can trace their history back to the mineral water found in natural springs. Bathing in natural

springs has long been considered a healthy thing to do; and mineral water was said to have curative

powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind the bubbles in

natural mineral water.

The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from

water and lemon juice sweetened with honey. In 1676, the Companied Lemonades of Paris were

granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on

their backs and dispensed cups of the soft drink to thirsty Parisians.


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Soda Fountain Bar

LOC

Joseph Priestley

In 1767, the first drinkable man-made glass of carbonated water was created by Englishmen Doctor

Joseph Priestley. Three years later, Swedish chemist Torbern Bergman invented a generating apparatus

that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed

imitation mineral water to be produced in large amounts.

John Mathews

In 1810, the first United States patent was issued for the "means of mass manufacture of imitation

mineral waters" to Simons and Rundell of Charleston, South Carolina. However, carbonated beverages

did not achieve great popularity in America until 1832, when John Mathews invented his apparatus for

the making carbonated water. John Mathews then mass-manufactured his apparatus for sale to soda

fountain owners.

PACKING INNOVATIONS:

By the mid-1800s, soft drinks sold in Canada were packaged in 8-ounce (227.2 ml) round-

bottom bottles for about 25 cents a dozen, except ginger beer, which was sold in draught form


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from wooden kegs. Wired cork closures were used until about 1884 with Codd's Patented

Globe Stoppers (25 types in all). Such closures were replaced by the Hutcheson Spring Stopper.

The crown cap was introduced around 1905 and improved versions are still widely used,

although they are gradually being replaced, especially on larger containers, with reclosable

screw caps.

Other packaging innovations since the mid-1960s include canned carbonated beverages,

nonreturnable glass bottles and containers made from rigid plastics. However, an effort is being

made, often through provincial legislation, to increase the use of returnable glass containers.

The Soft Drink Bottling Industry

Over 1,500 U.S. patents were filed for a cork, cap, or lid for the carbonated drink bottle tops during the

early days of the bottling industry. Carbonated drink bottles are under a lot of pressure from the gas.

Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In

1892, the "Crown Cork Bottle Seal" was patented by William Painter, a Baltimore machine shop

operator. It was the first very successful method of keeping the bubbles in the bottle.

Automatic Production of Glass Bottles

In 1899, the first patent was issued for a glass-blowing machine for the automatic production of glassbottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-blowing machine

was in operation. It was first operated by the inventor, Michael Owens, an employee of Libby Glass

Company. Within a few years, glass bottle production increased from 1,500 bottles a day to 57,000

bottles a day.

Home-Packs and Vending Machines

During the 1920s, the first "Home-Packs" were invented. "Home-Packs" are the familiar six-pack

beverage carrying cartons made from cardboard. Automatic vending machines also began to appear in

the 1920s. The soft drink had become an American mainstay. (Inventors: 2003).

Milestones of Industry:


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In the industry's early years the number of carbonated-beverage plants increased steadily, most

serving small regional markets. In 1929 the industry was made up of 345 production plants and

the value of shipments reached $12.3 million. By 1960 the number of plants had increased to

502 and the value of sales to $172.7 million. Subsequently, consolidation began, prompted by

improved production, packaging and distribution facilities. By 1973, 337 plants were in

production and the value of shipments was $484 million. In 1985, with sales of about $1.8

billion, the industry had 187 plants in production. Production volume has also increased

dramatically: in 1939, soft-drink bottlers produced about 162 million litres of carbonated

beverages; by 1967, production passed 758 million litres; in 1986, shipments were estimated at

over 2.1 billion litres; and in 1998 that figure rose to 3.5 billion litres.

A Timeline of soft drink invention:

1798 The term "soda water" first coined.

1810 First U.S. patent issued for the manufacture of imitation mineral waters.

1819 The "soda fountain" patented by Samuel Fahnestock.

1835 The first bottled soda water in the U.S.

1850 a manual hand & foot operated filling & corking device, first used for bottling sodawater.

1851 Ginger ale created in Ireland. 1861 The term "pop" first coined.

1874 The first ice-cream soda sold.


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1876 Root beer mass produced for public sale.

1881 The first cola-flavored beverage introduced.

1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.

1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

1892 William Painter invented the crown bottle cap.

1898 "Pepsi-Cola" is invented by Caleb Bradham.

1899 The first patent issued for a glass blowing machine, used to produce glass bottles.

1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles.

1919 The American Bottlers of Carbonated Beverages formed.

1920 The U.S. Census reported that more than 5,000 bottlers now exist.

Early 1920's The first automatic vending machines dispensed sodas into cups.

1923 Six-pack soft drink cartons called "Hom-Paks" created.


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1929 The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-LimeSodas" later called "7 up". Invented by Charles Leiper Grigg.

1934 Applied color labels first used on soft drink bottles, the coloring was baked on theface of the bottle.

1952 The first diet soft drink sold called the "No-Cal Beverage" a gingerale sold byKirsch.

1957 The first aluminum cans used.

1959 The first diet cola sold.

1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh,PA. The pull-ring tab was invented by Alcoa.

1963 The Schlitz Brewing company introduced the "Pop Top" beer can to the nation inMarch, invented by Ermal Fraze of Kettering, Ohio.

1965 Soft drinks in cans dispensed from vending machines.

1965 The resealable top invented.

1966 The American Bottlers of Carbonated Beverages renamed The National Soft DrinkAssociation.

1970 Plastic bottles are used for soft drinks.


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1973 The PET (Polyethylene Terephthalate) bottle created.

1974 The stay-on tab invented. Introduced by the Falls City Brewing Company ofLouisville, KY.

1979 Mello Yello soft drink is introduced by the Coca Cola Company as competitionagainst Mountain Dew.

1981 The "talking" vending machine invented. (Mary Bellis: 2005)

3.3 INDUSRTY PROFILE INDIAN CONTEXT:

FMCG in India:

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are

products that have a quick turnover and relatively low cost. Consumers generally put less

thought into the purchase of FMCG than they do for other products.


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The Indian FMCG industry witnessed significant changes through the 1990s. Many players had

been facing severe problems on account of increased competition from small and regional

players and from slow growth across its various product categories. As a result, most of the

companies were forced to revamp their product, marketing, distribution and customer service

strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly.

With the liberalization and growth of the Indian economy, the Indian customer witnessed an

increasing exposure to new domestic and foreign products through different media, such as

television and the Internet. Apart from this, social changes such as increase in the number of

nuclear families and the growing number of working couples resulting in increased spending

power also contributed to the increase in the Indian consumers' personal consumption. The

realization of the customer's growing awareness and the need to meet changing requirements

and preferences on account of changing lifestyles required the FMCG producing companies to

formulate customer-centric strategies. These changes had a positive impact, leading to the

rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and

qualified manpower also boosted the growth of the organized retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of the

FMCG industry by focusing on rural markets, direct distribution, creating new product,

distribution and service formats. The FMCG sector also received a boost by government led

initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the

country that witnessed firms moving away from outsourcing to manufacturing by investing in

the zones.

Though the absolute profit made on FMCG products is relatively small, they generally sell in

large numbers and so the cumulative profit on such products can be large. Unlike some

industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass

layoffs every time the economy starts to dip. A person may put off buying a car but he will not

put off having his dinner.


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Unlike other economy sectors, FMCG share float in a steady manner irrespective of global

market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.

The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian

Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is

the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth

Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides

up to 4 million jobs. (Source: HCCBPL, Monthly Circular, March)

The FMCG sector consists of the following categories:

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorantsand Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; themajor players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and

Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners(Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal

polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket

Colman.

Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals,Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee,

Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded

rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola,

Cadbury, Pepsi and Dabur

Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT


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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

existing consumers.

BEVERAGE INDUSTRY IN INDIA

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

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola


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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 lowlevels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumersperceive 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 aresatisfied and they enjoy consuming beverages.

The credibility and trust needs to be built so that there is a very strong and safe feeling that theconsumers have while consuming the beverages.

Consumer education is a must to bring out benefits of beverage consumption whether in termsof health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the

category.


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Communication should be relevant and trendy so that consumers are able to find an appeal togo out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of distribution. It isimportant to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn

to add up to the overall growth of the food and beverage industry in the economy.

Market Structure

Product Variation


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Company Share (%)

Cola Drinks:

Thums Up 29

Coca Cola 25

Pepsi 18

Non Cola Drinks:

Fanta 9

Mirinda 8

Limca 9

Overall Colas 62

Lemon:

Cloudy 7

Clear 3

Orange 17

Mango 3

Soda 8

(www.mofpi.nic.in)

Indian Product Range

Flavour Ingredients Pack Product Company
http://www.mofpi.nic.in/http://www.mofpi.nic.in/http://www.mofpi.nic.in/http://www.mofpi.nic.in/


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Cola Cola Flavour

carbonated water

sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Coke,

Thumsup

RC

Pepsi

Coca-Coal

RC cola

Pepsi

Orange Orange Flavour +

Carbonated Water+

Sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Fanta

Mirinda

Coca-Cola

Pepsi

Fruit Juice Mango Pulp+

Treated water+

sugar

250 ML Maaza

Minute Maid Pullpy

Orange

Slice

Tropicana

Appy Fizz

Real

Coca-Cola

Pepsi

Appy Fizz

Dabur

Cloudy

Lemon

Lemon Flavour +

Carbonated Water+

Sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Limca

LMN

Mirinda Lemon

Nimbooz

Coca-Cola

Parle agro

Pepsi


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Clear Lemon Lemon Flavour+

Carbonated Water +

Sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Sprite

7Up

Dew

Coca-Cola

Pepsi

HISTORY OF CARBONATED BEVERAGES IN INDIA:

India with population of more than 100 crores is potentially one of the largest consumer

markets in the world after China. The consumer market can be defined as the market for

products and services that are purchased by individuals as households goods for their personal

consumption. Soft drink is a typical consumer product purchased by individuals to quench thirst

and secondly for refreshment. Searching for the point of Indian soft drinks we first document

on Gold Spot, this was the first brand soft drink in India. It was introduced by PARLE during later

part of 40s.

Cola giant, Coca-Cola was the first foreign soft drink to be introduced in India in 1965, Coca-Cola make a

very good beginning and dominated the whole scheme right from the word go. It (Coca-Cola) faced no

competition at that time. COCA COLA entered India in the year 1993 in collaboration with PARLE INDIA LTD.

Three of four groups of Indians companies who had the required production capacity started their own

brands of Cola, Lemon, Orange, but failed to achieve their goal on a national basis. India always has love and

hate relationship with MNCs which gave a significant opportunities to soft drink industries in India when

Coca-Cola decided to windup its operation in 1977 rather than bowing to the Indian government insisting

on:-

Dilution of equity, as the government felt that lots of foreign currency was being wasted. Manufacturing of the top-secret concentration in India. Disclose of the chemical composition of the essence.

This left a large vacuum in the popular soft drink market, and a vista was opened to any company with the

requisite, technical, marketing and organizational skills.


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The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian Soft Drink. New soft drink

in the form of Tetra pack entered the market among Frooti, Jump-In and Treetop were the prominent once.

Till 1977 their equipped bottling plants and the distribution network a longing to be of no use. It took them

one year to develop new formula to survive and gradually came up with Campa, Lemon, Orange and Cola

that order.

However Parle, the pioneer in the soft drinks, blazed its way to national prominence with their product

Thumps Up bearing the slogan Happy Days Are Here Again. This particular slogan helped to win over the

loyalists or addicts to Coca-Cola, who was in the state of Cola Shock or Cola Depression. Soon the Indian

Soft drink industry started at a phenomenal rate, and all Parle Products Gold Spot, Limca and Thumps Up

became the brand leader in their own segment. In spite of all these, the drink market still has large gap, as

claim by soft drink manufacturers. To fill these gaps there are many soft drinks concentrate and squashes

flooded the market. The Indian soft markets basically offered three flavors i.e. Orange, Lemon and Cola.

CONSUMPTION PATTERNS AND POTENTIAL OF MARKET:

The majority of urban and suburban Indians consume non-alcoholic store bought beverages

less than once a day suggesting a large untapped market potential. In order to increase

consumption and penetration of such beverages however, manufacturers will have to address

the two primary reasons why some Indians abstain entirely, that is, health concerns and

undesirable taste - as highlighted in Boston Analytics survey of8300 people across 15 cities.

Approximately 120 billion liters of beverages are consumed by Indians every year, but only 5%

represent store-bought packaged beverages. The majority of Indian consumers (75%) still

consume non-alcoholic store-bought beverages less than once a day, highlighting a large

untapped market opportunity, particularly in the carbonated drinks and juice or juice-based

markets (estimated to be worth $1.5 Billion and $.25 billion respectively). While consumption

frequency decreases with age, it is found to increase with income levels, except in the top-most

economic strata of society. Health concerns remain the primary reason for not consuming non-

alcoholic store-bought beverages at all. Yet of the 40+ brands covered in Boston Analytic s

study, none held a definitive position in this regard either positively or negatively. Boston

Analytics study also revealed that 29% of those who consume non -alcoholic store bought


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beverage beverages do so at a fixed time during the day, suggesting that carbonated beverages

have become a part of life for a significant portion of the Indian consumer market. Product

taste is the primary driver of brand choice for carbonated, juice-based and sports/energy

drinks. While consumptions patterns are somewhat similar across different tiered cities,

reasons for not consuming non-alcoholic store bought beverages vary considerably. This study

has implications for both the marketing and product development of carbonated, juice based

and sports/energy drinks. Significant opportunities exist for manufacturers to expand these

markets through both greater consumption and greater penetration.

The store-bought non-alcoholic beverage market in India is significantlyunderpenetrated, even in urban and suburban areas. 75% of those interviewed for this

study report consuming store bought non-alcoholic beverages less than once a day.

While consumption increases with income (with the exception of the highest household

income level), it decreases with age.

One possible hypothesis for low penetration is the lack of routine consumption. Only29% of carbonated beverage consumers, 27% of fruit or juice based drink consumers

and 9% of energy or sports drink consumers report consuming such beverages at a

regular time each day.

Overall, health concerns was the most common reason for abstaining from consumingstore bought non-alcoholic beverages followed by a desire to prepare ones own fresh

beverages. Significant differences exist however by product category, i.e., carbonated

beverages, fruit drinks and energy or sports drinks in terms of reasons for abstaining.

There are numerous initiatives which manufacturers, distributors and marketers cantake in order to increase their market share in these product categories. For example: o

Non-alcoholic beverage brands do not appear to be positioning themselves or


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differentiating themselves along the brand attributes that matter most to consumers in

terms of product/brand selection and reasons for consuming and/or not consuming

As with most product categories in India, consumption behavior and preferences differdramatically across cities in India. While Tier 1 cities (or the largest metros in India)

report the highest consumption, significant differences exist among these cities, e.g., in

terms of the time of day store-bought non-alcoholic beverages are consumed, preferred

brands for carbonated beverages, reasons for consuming a particular product type,

etc.). Such differences demonstrate the need for carefully targeted marketing

campaigns that appeal to the needs, behaviors and preferences of local communities.

Source:http://www.bostonanalytics.com/news.html

TRENDS:

Top Carbonated Beverages Industry Trends

Consolidation:

With overall growth of the beverage market slow, national companies have grown through

overseas sales and acquisitions. Coca-Cola now owns 20 major beverage brands, PepsiCo 15.

Cott, the largest private-label soda maker, has grown in recent years through the acquisition of

local bottlers.

Brand Management

To distinguish their products from the large number of available competitors, manufacturers have relied

heavily on using familiar brand names for new products. For example, Coca-Cola now comes in several

different versions that are sugar- or caffeine-free or both, but all under the Coca-Cola label. Gatorade and

Tropicana orange juice are now available in many different versions. PepsiCo has agreements with Starbucks

and Lipton to use their brand names on new beverages.

Private-Labels
http://www.bostonanalytics.com/news.htmlhttp://www.bostonanalytics.com/news.htmlhttp://www.bostonanalytics.com/news.htmlhttp://www.bostonanalytics.com/news.html


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Amid the perception by consumers that colas don't taste different, private-label sodas continue to be

popular with budget-minded consumers and local supermarkets. Even though they're priced lower than

national brands, private-label sodas have higher margins for grocers because they're cheaper to produce

and don't have heavy marketing costs. Cott has a large share of the private-label market, mainly because it

supplies Wal-Mart, the nation's biggest retailer.

Economies of Scale

Coca-Cola bottlers in North America have started an independent company expected to save money by

giving them greater leverage in negotiations for contracts with suppliers and giant retailers. Projections

indicate it could save about $100 million over the next few years through centralized bulk purchases of

various goods from aluminum cans to vending machines. The company will also deal with major customers,

such as Safeway, which now deals with several different bottlers.

Packaging

To increase convenience and consumption, beverage manufacturers are constantly experimenting with new

product packaging. Coca-Cola introduced new packaging that conveniently fits 12 cans or bottles on a

refrigerator shelf. The Fridge Pack was first used by a regional bottler, which saw sales of 12-packs increase

25 percent with the new packaging. In addition to Coke, the bottler has also applied the concept to Dasani

water bottles.

Source:http://www.pwc.com/gx/en/sustainability/food-beverage-industry-issues.jhtml
http://www.pwc.com/gx/en/sustainability/food-beverage-industry-issues.jhtmlhttp://www.pwc.com/gx/en/sustainability/food-beverage-industry-issues.jhtmlhttp://www.pwc.com/gx/en/sustainability/food-beverage-industry-issues.jhtmlhttp://www.pwc.com/gx/en/sustainability/food-beverage-industry-issues.jhtml


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3.4 Coca-Cola industry profile:

COMPANY PROFILE:

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

Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer

and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400

beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,

distributors, fountain retailers and fountain wholesalers. The Companys beverage products

comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-

drink powder 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

the world. 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, more than any other consumer product, 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.

(Source: www.Coca-Colaindia.com)

OBJECTIVE OF COMPANY:

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 superior brands and services, thus increasing brand equity on a global basis. They aim

at managing their business well with people who are strongly committed to the Company


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values and culture and providing an appropriately controlled environment, to meet business

goals and objectives.(Source: www.Coca-Colaindia.com)

COCA-COLA PERFORMANCE IN INDIA

Net operating revenues for the 4th quarter 2009 were 7,5 billion USD. Strong volume growth

was achieved in key emerging markets, with 29% in China, 20% in India, and 8% in Brazil. Coca-

Cola could achieve good volume growth even in developed markets, namely in France with 12%

and in Germany with 3%.

Source: http://www.ibef.org/artdisplay.aspx?cat_id=60&art_id=25213

PRODUCTS OF COCA COLA:

1. Coca Cola2. Thums up3. Limca4. Fanta5. Sprite6. Mazaa

Competitors

1. Pepsi2. Mirinda3. Mountain due4. Appy fizz5. Tropicana

Competion from substitutes

1. Fruit juices of unorganised market2. Coconut3. Mineral water


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TIME LINE TOF COCA COLA ORIGIN GROWTH AND DEVELOPMENT

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.

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-


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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.


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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.

COCA-COLA: VISION

VISION FOR SUSTAINABLE GROWTH

PROFIT: Maximizing return to shareowners while being mindful of our overallresponsibilities.

PEOPLE: Being a great place to work where people are inspired to be the best they canbe.

PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate andsatisfy 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.

COCA-COLA: MISSION

Create consumer products services and communications customers service and bottling system strategy

process and tools in order to create competitive advantage and deliver superior value to-

Consumers as a superior beverage experience. Consumers as an opportunity to grow profit through the use of finished drinks. Bottlers as an opportunity to make reasonable to grow profits and value added


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Suppliers as an opportunity to make reasonable when creating real value added inenvironment of system wide teamwork, flexible business system and continuous

improvement.

Indian society in form of contribution to economic and social development.RED CONCEPT:

RED stands for Right Execution Daily. It is a survey method for the company to know their position in the

market.

ABOUT RED:

To check the availability of the visi cooler provided by the company to the retail outletsfor their products.

To check the activation in various outlets. To check the branding order of the various products in the cooler.

Survey has done in the four topics-

Impurity Brand Order Availability Activation

IMPURITY:

There should be no impurity in the visi cooler of the company. Impurity here refers to that brand

which is presented in the visi cooler other than cokes product. Therefore no other product of any other

company should be in the cooler.

BRAND ORDER:

The company has given a brand order to the market developers to arrange the different brands in

a specific order in the cooler. The order should be in such a way-


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Thumsup Coca cola Sprite

Limca Fanta Maaza Kinley Pet & Juice

AVAILABILTY:

Availability is done according the type of outlet. There are four type of outlet mentioned below.

According to this market developer has to ensure the availability of the products in the particular outlet.

ACTIVATION:

Activation is important because it helps to boost the sales of the company. It is done through the Glow

sign, Shelf display, flanges. Combo boards, Table tops .This boards usually gives to the E&D outlets .It

helps to attract the customers. Rack with header is provided to the grocery stores.

Market developer must ensure that all these activation elements must available at all the outlets.

VARIOUS ACTIVATION ELEMENTS:

1. WARM DISPLAY RACK

2. SHELF DISPLAY


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SHELF DISPLAY DISPLAY OF RACK

VISI COOLER

OPTIONAL ELEMENTS:-

1. STANDEE

2. SIX MOBILE HANGER

3. VISI COOLER BRAND STRIP

4. WARM DISPLAY RACK

5. TABLE TOP RACK


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TYPES OF OUTLETS:

The company has divided their outlets on the basis of the following criteria-

Volume Channel Income group

VOLUME

There are four types of outlets according to the volume of sales of the outlet-

Diamond - 800>C/s & above per year

Gold - 500-799C/s per year

Silver - 200-499C/s per year

Bronze -


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Bars and Pubs

Dhabas

Cafes

EATING & DRINKING CHANNEL 2:

It includes bakery, sweet shops, tea shops, soft drink shops and juice centre.

CONVENIENCE CHANNEL:

This segment includes PAN BIDDI outlets that stock cigarettes, mint, confectionary. It covers STD/ISD

phone booths, travel channel etc. Small outlets that mainly sell 200ml or 300ml bottles. They may also

sell 600ml.

INCOME GROUP:

According to the income group of the area

Low: Those outlets where low income customer comes.

Medium: Those outlets where medium income customer comes.

High: Those outlets where high income customer comes.


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SEGMENTATION MODEL:


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Under RED market developer has to insure that shopkeeper must display all products. Display may be in

the form of Shelf Display, Table Top Display etc. All products must be displayed in brand order i.e.

Thumsup, Coke, Sprite, Limca, Fanta, Maaza, Minute Maid Pulpy Orange, Kinley (mineral water & Soda

water).

TYPES OF VISI COOLER/CHEST

Cooler - 2C/s Chest- 4C/s

4C/s 10C/s> above

7C/s

9C/s

20C/s

30C/s

CONCEPT OF RED:

Hindustan Coca-Cola Beverages Pvt.Ltd. India division Under Eurasia Operating Group has been

working on RED i.e. Right Execution Daily Since JAN 2006.Coca-Cola company believes that its success

depends on their ability to connect with consumer by providing them with a wide variety of choices to

meet their desires, needs and lifestyles choices, company success further depends on the ability of their

people by execute effectively every day.

MEASURING THE PERFORMANCE OF RED:

To measure the impact of Right Execution Daily (RED) a survey (RED AUDIT) is done by third party (a

consultant) every month. Third party conducts a survey by visiting all the RED activated outlets and

benchmarks it on the prescribed Merchandising standards of RED. A monthly report is send to Hindustan

Coca- Cola Beverages Private Limited. The report is called as

To create the Red Report third party asks a set of question from the retailers which are as follows:


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Related to Visicooler:

Is Cooler in the Hot Spot Location? Does it have all the products of Coca-Cola available? Is the display of the Coca-Cola display of the products in a standard such as sprite,

Thums up, Maaza, Fanta and Limca",)

Is cooler working properly? Is the cooler pure?

Related to Price Communication:

Is there proper price display of the products?

Related to product availability:

All the brands should be present in the every distribution channel but main concern is that 300 ml

should be present in the every channel and 600 ml and 1.5 liters per bottles should be present in the

Eating and. drinking, convenience and Grocery shop.

PJP (Permanent Journey Plan)

(P.J.P. plan): The P.J.P. plan is a day wise schedule of a market developer which contains the names ofthe outlets to be visited by him coming under the campaign R.E.D. where the project 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.

PRE SALE CONCEPT

This is a new concept by the company. 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.


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This concept has so many advantages-

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.


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Analyses of Data

Chapter 4


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4.1MARKET SHARE:

In the total sample of 100

Customers of Coca-Cola alone- 67

Customers of both Pepsi and Coca-Cola-33

Survey is conducted in exclusive Coca-Cola market route but still there are 33% of retailers who

is selling Pepsi along with Coca-Cola. So necessary steps can be taken in order to make them

exclusive Coca-Cola outlet which will help in increasing market share and sales.

Coca-Cola

67%

Pepsi and cocacola

33%

Customers of Coca-Cola and Pepsi


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4.2CUSTOMER DEMAND AS PER THE OPINION OF RETAILERS:

91 respondents said that most of the customers demand for Coca-Cola products

Only 9 respondents said that their customers demand for Pepsi

From the above chart it is clearly evident that Coca-Cola has a very high customer demand.

There are several factors that are influencing the Coca-Cola customer demand. Important

among them are advertisements, brand ambassadors and different flavors for different groups

of people. This is one of major advantage of Coca-Cola in the market and this can be used for

making pricing decisions and to capture more market.

COCA-COLA

91%

PEPSI

9%

CUSTOMER DEMAND


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4.3 FREQUENCY OF ORDER PLACING BY RETAILERS:

According their sale and demand 57% customer are placing their order regularly, 31 % are

placing their order once in every two days , 7 % are placing their order in once in every three

days and 5% are placing their order once in a week. This study will help the market developer to

know who will place the order regularly and who will not based on this he can make any require

changes in his journey plan which will help him in effectively maintaining S.G.A and thereby

improving RED score.

57%31%

7% 5%

Frequency of placing orders

Daily Once in every two days Once in every three days weekly once


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4.4 ORDER PLACING:

16 respondents are placing order of 0.5 to 1 cases in each order

46 respondents are placing order of 1 to 5 cases in each order



8 respondents are placing order of >15 cases in each order

Retailers placing more order can be offered special gifts and free samples so that they will be

motivated to increase the sale further. Retailers placing low order should be given free cases

and discounts and should be motivated to place more order .

0.5-1

16%

1 to 5

46%

5 to 10

18%

10 to 15

12%

>15

8%

Sales


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4.5RETAILERS WITH COOLERS:

69 % of retailers have coolers give by Coca-Cola Company. Other 31% are having coolers of

their own or coolers given by Pepsi. These 31 % can be motivated to increase the sale of Coca-

Cola by placing visi-coolers in their outlets.

Yes

69%

No

31%

Retailers with coca-cola coolers


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4.6.1 Type of cooler:

4.6.2 Capacities of various coolers present:

Visi cooler

93%

chest cooler

7%Type of cooler present

48%

22%

10%

7%

13%

Capacity of cooler

15 case 09 case 20 case 30 Case 7 case


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4.6.3 Number of coolers in prime position:

4.6.4 Number of coolers following brand order:

Prime position

68%

Not in prime

position

32%

Coolers present in prime position

Brand order

present

83%

Brand order absent

17%

Brand order


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4.6.5 Number of cooler which are pure:

4.6.6 Retailers having other coolers along with Coca-Cola cooler

Pure

35%

Not pure

65%

Purity

Yes

52%

No

48%

Retailers having other coolers


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4.6.7 Market Developer and cooler arrangement:

The above analyses show the maintenance of visi-coolers. Out of the 100 retailer only 69 have

the coolers given by Coca-Cola.

In the 69 coolers 64 are visi-coolers and only 5 are chest coolers.

47 coolers are present in prime position and 22 are not present in prime location.

57 coolers are following brand order norms and 12 are not following brand order norms

45 coolers are not pure and 24 coolers are pure. Retailers are not ready to keep their coolers

pure as the profit margin in other products like water and butter milk is more.

60 respondents said that market developer is arranging the cooler as per the norms whenever

they are getting the delivery

Market developer arranging the cooler

Yes

No


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4.7 Categories of outlet:

Bronze (< 200cases): 19 outlets belong to this category and 7 are low income area and 12 are in

high income area

Silver (200-499): 35 outlets belong to this category and 11 are in low income and 24 in high

income

Gold (500-799): 34 outlets are in this category and 14 are in low income and 24 are in high

income area.

Diamond (>800 cases): 12 outlets belong to this category and 3 of them are in low income area

and 9 of them in high income area.

Classification of outlets in these categories will help the market developer to reach the

availability standards in each outlet as per the RED norms.

7

11

14

3

12

24

20

9

Bronze Silver Gold Diamond

Outlet Category

Low income High income


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4.8 Activation elements present:

The above charts show the presence of various activation elements in different types of outlets.

Most of them had the activation elements as per their RED standards.

27 27 30 2613 19

2226 30

23

12 16918 20

11

13

011 16 20

6

9

0

Chart Title

Convenience Grocery E and D 1 E and D 2


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4.9 Retailer preference for selling Coca-Cola

The above chart shows the retailers preference for selling Coca-Cola

Customer demand is one of main reason 86 respondents said that.

Brand image and awareness is another reason with 83 respondents.

76 said service is also one of the reasons

65 said availability of different sizes and flavors

49 said profitability

37 said its their personal interest along with other factors

Only 26 said payment terms.

83

4937

8676

65

26

Brand image Profit Personal

Interest

Customer

demand

Service Different sizes

and flavousr

Payment

terms

Retailer preference for selling coca-cola

Retailer preference for selling coca-cola


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4.10 Comparative analyses of Coca-Cola and pepsi:

From the above chart it can be observed that Coca-Cola and pepsi have no difference in service,

order delivery and sales man.

The three factors differentiating them are profit, discounts and benefits and sales volume.

74 respondents said pepsi is more profitable than Coca-Cola

72 respondents said better discounts and benefits is pepsi

80 respondents said Coca-Cola has very high customer demand. This is good strength of Coca-

Cola to have great customer awareness and demand. Hence irrespective of its low profit margin

and low discounts Coca-Cola can still be market leader by maintain its customer demand by

more advertising

26

50 50

28

80

50

74

50 50

72

20

50

Profit Service Order delivery Discounts and

benefits

Sales volume Sales Man

Coca-cola vs Pepsi

Coca-cola Pepsi


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4.11 Market demand of various flavors:

Thums up: product having high demand in the market. 88 respondents ranked 1 to this product

Sprite: Clear lemon flavor from Coca-Cola. This followed thums up with 78 respondents

Maaza: Mango flavor non-carbonated juice. Ranked 3 in terms of customer demand with 77

respondents

Limca: Cloud lemon flavor from Coca-Cola. Ranked 4 in terms of customer demand with 72

respondents

Fanta: Orange flavor. Ranked 5 with 66 respondents

Minute maid: Available in orange and lime. Ranked 6 with 55 respondents

88

53

7872

6677

55

Thums up Coca-cola Sprite Limca Fanta Maaza Minute Maid

Market demand

Market demand


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Coca-Cola: Ranked 7 with 53 respondents

4.12 Retailer opinion on 350 ml sales:

When retailers were asked about the 350ml express pack 30% said it will have good customer

demand, 30% said it will not be a success and 40% said they cannot say until the product is

launched into market. Many respondents said 18/- m.r.p is very high price. Pricing it at around

15/- mrp may make it a success.

In my opinion pricing it at 18/- is right decision. If we take the example of pulpy orange which is

initially launched at price 25, it was not a success. Then it was re-launched by reducing the price

to 18 and it was a success. It also helped company to know the problems in flavor which are

rectified in second lauch. Similar strategy can be used for express pack also. Initially it may not

be a success but in course of time by making the required pricing adjustments it will be success.

Good customer

demand

30%

It will not be a

success

30%

Cannot say

40%

Retailer opinion on 350ml express pack


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4.13 Impact of express pack on 200ml and 600ml:

45 respondents said launch of express pack will increase the sale of 200ml and 600ml pet

20 said there will not be any increase

35 said they cannot say

If we consider the opinion of 45 respondents then company has to make the necessary

arrangements to increase the supply of 200ml and 600ml pet bottles.

Increase in their

sales

45%

Will not have any

increase

20%

Cannot say

35%

Impact of express pack on Sales of 200 and

600ml


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FINDINGS

SUGGESTIONS

LIMITATIONS &

CONCLUSIONChapter 5


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5.1FINDINGS:

Coca-Cola had a very high customer awareness and demand Coca-Cola retailers are not satisfied with the promotional offers being provided by

company.

Retailers are dissatisfied for removing the free extra bottles scheme Retailers are very much satisfied with market developers behavior Market developers are facing problem from local dealers who are supplying cases to

retailers at price less than that of company

Cokes RED concept is very effective, it ensure the availability of products and activationon outlets

Problems of visi coolers are not being solved quickly and many retailers had complaints Retailers are not allowing market developers to keep visi-coolers pure There are some loyal customer who prefer selling only Coca-Cola Some retailers are giving customers either substitutes or competitors brands because of

more profit margin

Some customers are not able to differentiate maaza and slice, seven up and sprite. Someretailers are taking this as an advantage and selling other brands

With RED stock out situations are avoided and many retailers are satisafied with pre-saleconcept


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5.2 SUGGESTIONS:

More promotional offers have to introduced Market developers should be given some amount which can be used to provide

credit facility to some retailers

Market developers and sales people should work together Sales people should be bit polite with retailers as some retailers complained Damaged goods should be replaced more quickly Install Fountain Machine at big petrol bunks like siripuram. It will be helpful in

generating impulse purchase and also as awareness about the products of the

company among the consumers

Many customers prefer to have coffee or tea so Coca-Cola can launch its Georgiacoffee vending machines. As many retailers are having either nestea or other this

will be a success.

The Company employees should make direct contact with the consumers, so thatthey may aware with real situation of the market and consumers attitude towards

the product. For this they can arrange awareness camps in different locations

Delivery should be done more quickly Gifts should be given to certain retailers who sells large quantities of goods


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5.3LIMITATIONS:

Study is done only in three areas Only 100 retailers are surveyed The time period allotted for the study was only of two months, which may provide a

deceptive picture in comparison of the study based on long run.

Some questions were not understood by the retailers Some information provided is approximate information The success of any survey depends upon the quality and integrity of the surveyor who

collect the basic data by expressing the subject under the study and on the respondents

who provides the data required by filling up the questionnaire .The accuracy of the data

collected solely depends upon the cooperation and truthfulness of the person who is

being interviewed.

Interaction skills as well as the behavior of the respondents also played as constraintsduring the research.

This is product demand varies seasonally so study in different seasons yields differentresults


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5.4 CONCLUSION:

RED is a worldwide project of COCA COLA Company. This project is playing a very important role for the

company. With the help of this project, sale of the company has been increased. Because in this project

there is one market developer who has to ensure that Visicooler must be on prime location, all brands

must available, all brands must displayed in brand order i.e. COLOJK. All the activation elements like

warm display rack, table top rack, standees etc must be available at all outlets come under RED. All

these elements help the company in increasing the sales

Definitely when sales increase then profits also increases. With the help of this

project company has increased its sale and also company can measure or check the performance of

each retailers working all over the world with COCA COLA COMPANY.


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ANNEXURE

QUESTIONNAIRE ON RIGHT EXECUTION DAILY (RED)

1. Which products of soft drinks are available in your store?a) Products of coca cola alone b) Products of Pepsi alone c) Products of bothd) Products of either Coca-Cola or Pepsi along with local products

2. Which products do you have maximum demand?a) Coca-Cola b) Pepsi c) others

3. How frequently do you place your order?a) Daily b) Once in every two days c) Once in every three days d) weekly once

4. How many cases do you order?a) 0.5-1 b)1-5 c) 5-10 d)10-15 e)>155. Do you have a cooler given by Coca-Cola?a) Yes b) No

6. If answer to the above question is yes then please answer the following: i. Which type of cooler?

a) Chest cooler b) Visi coolerii. Capacity of cooler

a) 7 case b) 15 case c) 20 case d) 30 case iii. Is your cooler in prime position?

a) Yes b) Noiv. Are the drinks placed in it following brand order as per the norms?

a) Yes b) Nov. Is it pure (Purity-Presence of Coca-Cola products only)a) Yes b) No

vi. Does your market developer arrange the cooler?a) Yes b) No

vii. Do you have any other coolera) Yes b) No

7. Whats the category in which your outlet placed?a) Bronze b) Silver c) Gold d) Diamond

8. What is the average number of bottles sold in your outlet?a) < 1case b) 1-5 Cases c) 5-10 cases d)>10cases

9. Tick those that are present in your outlet from the following options:Visi cooler Price communication GSB/Flex board with prominent drinkingshot

3 Tier rack Shelf display Combo communication Road stand10.Why do you prefer to sell Coca-Cola? (Tick more than one)

Brand image profit c personal interest customer demand Good service

Different sizes and flavors after sale service Payment terms


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11.Tick which company is betterCoca-Cola Pepsi Reason

i. Profitii. Service

iii. Delivery of orderiv. Discounts and benefitsv. Sales man

vi. Market developersvii. Visits of sales managers

12.Which drink of Coca-Cola is demanded more in your store(rank in order of preference)a) Thums up b) Coca cola c) Sprite d) Limcae) Fanta f) Maaza g) Minute maida)13.Do you think 350ml, in place of 300 ml, priced at 18/- will be demanded more by thecustomera) Yes b) No c) Cannot say

14.Do you think introduction on 350ml will increase sale of 200ml and 500ml unitsa) Yes b) No c) Cannot say

Personal Details:

Name:

Age:

Gender:

Type of outlet:

Outlet name:

Name of M.D:

Phone number:


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References:

1. www.mofpi.nic.in2. www.foodindustryindia.com3. Indian brand equity foundationwww.ibef.com4. Coca-Cola official website www.Coca-Colaindia.com5. www.essortment.com/all/historyofsoft_rntg.html6. http://www.bukisa.com/articles/237411_the-history-of-soft-drinks7. http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Coca-

Cola%20reports%20strong%20growth%20in%20China%20and%20India&id=740

8. http://www.pwc.com/gx/en/sustainability/food-beverage-industry-issues.jhtml9. http://www.ibef.org/artdisplay.aspx?cat_id=60&art_id=2521310.http://www.bostonanalytics.com/news.html11.Sales Presenter 2010- Coca-Cola hand book on Right execution daily
http://www.mofpi.nic.in/http://www.mofpi.nic.in/http://www.foodindustryindia.com/http://www.foodindustryindia.com/http://www.ibef.com/http://www.ibef.com/http://www.ibef.com/http://www.essortment.com/all/historyofsoft_rntg.htmlhttp://www.essortment.com/all/historyofsoft_rntg.htmlhttp://www.bukisa.com/articles/237411_the-history-of-soft-drinkshttp://www.bukisa.com/articles/237411_the-history-of-soft-drinkshttp://www.foodindustryindia.com/newfood/detailnews.jsp?n=Coca-Cola%20reports%20strong%20growth%20in%20China%20and%20India&id=740http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Coca-Cola%20reports%20strong%20growth%20in%20China%20and%20India&id=740http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Coca-Cola%20reports%20strong%20growth%20in%20China%20and%20India&id=740http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Coca-Cola%20reports%20strong%20growth%20in%20China%20and%20India&id=740http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Coca-Cola%20reports%20strong%20growth%20in%20China%20and%20India&id=740http://www.pwc.com/gx/en/sustainability/food-beverage-industry-issues.jhtmlhttp://www.pwc.com/gx/en/sustainability/food-beverage-industry-issues.jhtmlhttp://www.ibef.org/artdisplay.aspx?cat_id=60&art_id=25213http://www.ibef.org/artdisplay.aspx?cat_id=60&art_id=25213http://www.bostonanalytics.com/news.htmlhttp://www.bostonanalytics.com/news.htmlhttp://www.bostonanalytics.com/news.htmlhttp://www.bostonanalytics.com/news.htmlhttp://www.ibef.org/artdisplay.aspx?cat_id=60&art_id=25213http://www.pwc.com/gx/en/sustainability/food-beverage-industry-issues.jhtmlhttp://www.foodindustryindia.com/newfood/detailnews.jsp?n=Coca-Cola%20reports%20strong%20growth%20in%20China%20and%20India&id=740http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Coca-Cola%20reports%20strong%20growth%20in%20China%20and%20India&id=740http://www.bukisa.com/articles/237411_the-history-of-soft-drinkshttp://www.essortment.com/all/historyofsoft_rntg.htmlhttp://www.ibef.com/http://www.foodindustryindia.com/http://www.mofpi.nic.in/

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