Project On

RED(Right Execution Daily)

For

Hindustan Coca-Cola Beverages Pvt Ltd.(Chandpur Harbans, Allahabad Road)

Dabhasemar, Faizabad

Under Saket Sales & Services Pvt

Master Of Business Administration (Marketing)

Submitted in partial fulfillment of the requirement for the reward of

Master of Business Administration of Tilak Maharashtra University,Pune

Submitted ByRakesh Kumar Agrawal

PRN:Of

Institute of Business Studies And ResearchPune

Tilak Maharashtra UniversityGultekdi,Pune (4110037)

2

CERTIFICATE FROM THE GUIDE

This is to certify that project titled “ IMPACT OF RED” in Faizabad city for

“HINDUSTAN COCACOLA BEVERAGES PVT LTD.” Is based on live Project

study conducted by RAKESH KUMAR AGRAWAL at Faizabad during his tenure as a

summer trainee with us and in our guidance.

PLACE: Mrs. Rashmi D. Mahajan

DATE:

3

4

ACKNOWLEDGEMENT

I would like to express my heartiest gratitude to Mr. Murtiza Talib & Rifat Khaleeq

(Area team leader HR) Hindustan Coca-Cola Beverages Pvt. Ltd. Faizabad for given

me an opportunity to associate myself to the world’s largest soft drink Co. Carry out my

project titled RED survey. I would like to thank Mr. S.L. Lal Srivastava

(Q.A.Executive) to recommending my name for the summer trainee.

I am sincerely thankful to Mr.Vindhya Kumar Srivastava (Sales team leader) under

whose guidance I have successfully completed this project. I think him for his consent,

encouragement, and warm response and for filling every gap with valuable ideas that has

made this project successful.

I also thankful to outlet holders to whom I visited for their support, information,

cooperation, advice to complete my project detail.

I wish to express my heartiest gratitude to our RED M.D. Mohd. Aslam Khan for giving

me useful guidance for summer internship.

.

It is a privileged to express my sincere thanks to our honorable Project Guide Mrs.

Rashmi D. Mahajan for giving me an opportunity to undergo this project. I would like

to thank our Head of Marketing Department Mr. Kulkarni & our faculty of Research

Methodology Mr. Vilas Chaudhary for giving sound marketing concepts which helped

me in writing for this Project.

RAKESH KUMAR AGRAWAL

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INDEX

CHAPTER 1-Rational of the study

CHAPTER 2- RED (Right Execution Daily) Objective of study Scope of study Significance of the study My role in project RED

CHAPTER-3 Company Profiles History of Coca cola Cocacola in India

CHAPTER-4 Industrial Profile Soft drink Industry In India Coca-Cola in India Vision of coke in India Mission of coke in India

CHAPTER-5 Product Profile Different brands of the Company Brand Tagline Brand Ambassadors Detail of Brands

CHAPTER -6 Competitive Areas Competitive area among Coke & Pepsi Advertising Brand ambassadors & TV Commercials Promotion by the company

CHAPTER -7 Marketing Department Marketing department Distribution Network Sales promotion techniques of the company Criteria for providing free chilling equipment S.G.A providing company

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CHAPTER-8 Methodology Research methodology PGP Plan Pre Sale Concept

CHAPTER -9 Hypothesis Test of hypothesis Swot analysis Push & Pull Strategy

CHAPTER -10 Conclusion Conclusion Findings Facts Suggestions

CHAPTER -11 Questionnaire

QUESTIONAIRE Declaration References

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1. RATIONAL OF THE STUDY

Sales and distribution 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.

It’s my gratitude to work with Coca Cola company specially in marketing department. I

have been placed their in sales and distribution department for my internship. The

research work was not so easy as Coca Cola is very strict in their marketing policy.

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.

Thus, these were the main reasons for conducting this study.

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2. RED (RIGHT EXECUTION DAILY)

OBJECTIVES 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.

To study the pre-sale concept of the coke.

To ensure the availability and visibility of the product.

To analyze the effect of scheme

SCOPE 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 fond 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.

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SIGNIFICANCE OF THE STUDY

This project is helpful to find out the sale trends of the coke products and its

effect on consumer value and satisfaction.

This study provides an insight to the company that what kind of strategy must be

adopted in order to increase the sales and satisfaction o the consumer.

This project directly deals with the interaction of different kind of people.

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MY ROLE IN PROJECT “RED”

IMPLEMENTATION – First and foremost task for me was to implement the project in

the given area with the support of MD’s (MARKET DEVELOPER). Various norms for

different outlets had been fixed but their implementation was very important. Different

areas were assigned to me in which I implemented RED and these areas are further

visited by various higher officials of the organization.

I measured the performance of sales team and distributors (under RED) in outlets

with respect to all parameters of execution.

I did scoring on the scoring sheet.

The scoring sheet was provided on the basis of which scoring can be done.

Scoring is done out of 100 marks and they have been further divided in 3 components

1. VISI COOLER - 30 points

2. AVAILABILTY - 50 points

3. ACTIVATION – 20 points

MARKET AUDITING (TRACKING PERFORMANCE) – Tracking performance of

the MD of corresponding area was also my responsibility. I had to score him on fixed

norms (RED SCORING SHEET) and also give the feedback on his performance.

FINDING LOOPHOLES – Finding loopholes in the system like absence of co-

ordination between MD’s and SALES TEAM and report to higher officials (Mr. Vindhya

Srivastava)

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BRAND CONTACT - I had to interact regularly with shopkeepers to know their

problem and try to solve them. If I could solve them then I reported them to my company

guide, else he suggested me the alternatives, and I also took out the orders from retail

outlets and to check out the activation.

AVAILABILTY - I also need to give company weekly availability report of various

brands.

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3. COMPANY PROFILES

HISTORY OF COCA-COLA

The world has changed in many ways since pharmacist, John Syth Pemberton first

introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the

product mean so many things to hundreds of Millions of consumers around the globe.

Coca-Cola products are served more than 705 million times every day, quenching the

thirsts of consumers in more than 195 countries in every climate. That's a long way to

come after such a modest beginning...

 May

1886

- Pemberton concocted a caramel-colored syrup in a three-legged brass kettle in his

backyard. He first "distributed" the new product by carrying Coca-Cola in a jug

down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a

glass of Coca-Cola at the soda fountain. Whether by design or accident,

carbonated water was teamed with the new syrup, producing a drink that was

proclaimed "Delicious and Refreshing." Dr. Pemberton's partner and bookkeeper,

Frank M. Robinson, suggested the name and penned, in the unique flowing script

that is famous worldwide today, "

1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton

sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a

distinctive color associated with the No. 1 soft drink brand ever since.

1891 - Atlanta entrepreneur Mr. Candler had acquired complete ownership of the Coca-

Cola business for $2,300. Pemberton was forced to sell because he was in a state

of poor health and was in debt. Within four years, Candler's merchandising flair

helped expand consumption of Coca-Cola to every state and territory.

1893 - In January "Coca-Cola" was registered in the U.S. Patent office.

1917 - 3 Million Coke's sold per day. "COCA-COLA" is the worlds most recognized

trademark.

1919 - The Coca-Cola Company was sol a group of investors for $25 million.

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1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff

for 25 million dollars. He gave Coca-Cola to his son, Robert Woodruff, who

would be president for six decades.

Woodruff's leadership took the business to unrivaled heights of commercial success,

making Coca-Cola an institution the world over.

During the Woodruff era, Mr. Woodruff made a promise to the armed forces of the

United States to supply Coca-Cola to every serviceperson. He said that costs and

location did not matter; he supplied 5 billion bottles to the service.

1925 - 6 Million Coke's sold per day.

1927 - The first Coca-Cola radio advertisement.

1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time.

1943   On June 29, an urgent cablegram arrived from General Dwight Eisenhower's

Allied Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to

serve American servicemen overseas.  Eventually, 64 plants were set up during

WWII.

1950 - Advertising on the television began. Currently Coca-Cola is advertised on over

five hundred TV channels around the world.

1961 - Sprite was introduced.

1971 - The song "I'd like to Buy the World a Coke" was released.

1978 - The two liter bottle was introduced, and during that same year the company also

introduced plastic bottles

1982 - Diet Coke was introduced in July.

1985 - The Coca-Cola Company made what has been known as one of the biggest

marketing blunder. They stumbled into a new formula in efforts to produce diet

Coke. They put forth 4 million dollars of research to come up with the new

formula.

The new formula was a sweeter variation with less tang, it was also slightly smoother.

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The factor that influenced the change was that Coke's market share fell 2.5 percent in

four years. Each percentage point lost or gain meant 200 million dollars. This was the

first flavor change since the existence of the Coca-Cola company. The change was

announced April 23, 1985 at the Vivian Beaumont Theater at the Lincoln Center. Some

two hundred TV and newspaper reporters attended this very glitzy announcement.

The change to the world's best selling soft drink was heard by 81 percent of the United

States population within twenty-four hours of the announcement. Within a week of the

change, one thousand calls a day were flooding the company's eight hundred number.

Most of the callers were shocked and/or outraged, many said that they were considering

switching to Pepsi. Within six weeks, the eight hundred number was being jammed by

six thousand calls a day. The company also fielded over forty thousand letters, which

were all answered and each person got a coupon for the new Coke. Many American

consumers of Coca-Cola asked if they would have the final say. When Pepsi heard that

the Coca-Cola company was changing its secret formula they said that it was a decision

that Pepsi tastes better. Roger Enrico, the president and CEO of Pepsi-Cola wrote a letter

to every major newspaper in the U.S. to declare the victory.

Coca-Cola management had to decide: Do nothing or "buy the world a new Coke". They

decided to develop the new formula.

 

1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke was

brought back in addition to the new one. This was greatly due to dropping market

share and consumer protest. The market share fell from a high of 15 percent to a

low of 1.4 percent. This was said to be a classic marketing retreat. Coca-Cola

executives admitted that they had goofed by taking the old Coke off the market.

The Coca-Cola company's eight hundred number received eighteen thousand

calls of gratitude. The comeback of old Coke drove stock prices to the highest

level in twelve years. This was said to be the only way to regain the lead on the

cola wars.

1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.

1996 - The Summer Olympics will be held in Atlanta, Georgia, the home of Coca-Cola.

For more than 65 years, Coca-Cola has been a sponsor of the Olympics.

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CSR (COMPANY SOCIAL RESPONSBILITY)

One great earmark that the Coca-Cola Company has is helping the people of Atlanta.

They accomplish this through scholarships, hotlines, donations and contributions.

Another large accomplishment that the Coca-Cola has, is being the first company to make

and use recycled plastic bottles.

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JOHN PEMBERTON

COKE IN INDIA

Despite the formidable track of its parent $18 billion giant in Atlanta USA.Coke India

record 1800 crore soft drink makers is prominent.Cocacola entered in India market after

16 years from Hathras Dec 1993.Cocacola became the undisputed leader of the Indian

soft drink market because of their aquiring rights of Ramesh Chauhan aerated Parle

drinks with one stroke of pen and a bill of 140 crore, coke picked by five brands Thums

up, limca, Goldspot, Citra, Maaza with a combined rate of 65% with Thumsup alone

accounting for 56% then 650 crore segment.

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BENCHMARK

Cocacola ranks no.1 brand in the world by the business world survey followed by

companies like Microsoft and IBM.

Cocacola is the market leader in the whole world in beverage industry.

Business week magazine ranks Cocacola on 4th position in Indian FMCG industry.

Cocacola enjoys approx 60% market share in Indian beverage industry.

INDUSTRIAL PROFILE

SOFT DRINKS INDUSTRY IN INDIA

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BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

Since the early 1990’s Coca-Cola Corporation and PepsiCo have been combating

on what is known as the “Beverage Battlefield” in India. Today India is one of the most

sought after countries for foreign investments because of their continually growing

market opportunities. However during Coca-Cola and Pepsi’s attempts to broaden their

global consumer bases both companies encountered several obstructions on their pursuits

of conquering the Indian soft drink market.

INTIAL DIFFICULTIES

From a historical standpoint, Coca-Cola and Pepsi were facing obstructions even

before entering the market in the late 1980’s. Coca-Cola’s past venture in India had

ended on bad terms with the Indian government when they refused to offer up their trade

secrets. During the absence of foreign investment in the soft drink industry in India a

local company, Parle, became the market leader. Parle invested a great deal into their

leading brand, Thums Up, and played a dominant role in the soft drink industry until the

liberalization of the Indian economy in 1991. After this time many of the political and

legal obstacles facing Coca-Cola and Pepsi were lessened.

POLITICAL CHALLENGES

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Other political challenges hindered the success of Coca-Cola and Pepsi in India as

well. In 2003, when the United States and Britain invaded Iraq, the All-India Anti-

Imperialist Forum called a boycott on goods from America and India. Indian’s protested

American companies for the war and specifically targeted Coca-Cola and Pepsi products.

While the war was beyond control for these two companies, management perhaps

could’ve done more to not only attempt to predict the backlash from Indian consumers

due to the war, but also could’ve created advertisement campaigns to address the

situation.

While political and legal factors produced problems for Coca-Cola and Pepsi,

both Coca-Cola and Pepsi did a lot of things to prevent that situation from happening.

Both companies heavily participated in the cultural festival of Navratri in western India

to promote their products and create brand awareness in a culturally traditional setting.

The companies also produced television and print advertisements that linked important

Indian themes to their products by “building a connect using the relevant local idioms”

Coca-Cola and Pepsi both utilized popular Indian sporting events, athletes, and celebrities

to endorse their products. Both companies could’ve made the mistake of using American

celebrities or already made American commercials to advertise their products in India,

but instead made the right move by making advertisements to specifically target their

foreign market.

PRICING POLICY FOR INDIAN MARKET

Coca-Cola and Pepsi also made the right moves by adapting to cultural barriers in

India. One such barrier was the affordability of products for Indians. Because India is a

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country where people are known to live on very little a day, the idea of getting people to

spend what little they have on a soft drink could be quite a stretch. However Coca-Cola

India went with an aggressive pricing policy and reduced the price of their soft drinks in

2003 from 15% to 25% nationwide. To compete competitively in the market, Pepsi

reduced their prices as well. This move allowed both companies to offer products that

were affordable to the target market in India but also encouraged more Indians to

consume Pepsi and Coca-Cola products.

Both companies also created smaller sized bottles to allow for lower prices for

Indian consumers. Coca-Cola and Pepsi created bottles ranging in size from 200 ml to

500 ml to adapt to cultural needs and increase their sales. By offering smaller sized

bottles many consumers also increased the frequency in which they were purchasing the

soft drinks.

COCACOLA IN INDIA

Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than

reveals its formula to the government and reduces its equity stake as required under the

Foreign Exchange Regulation Act (FERA) which governed the operations of foreign

companies in India. After a 16-year absence, Coca-Cola returned to India in 1993,

cementing its presence with a deal that gave Coca-Cola ownership of the nation's top

soft-drink brands and bottling network. Coke’s acquisition of local popular Indian brands

including Thums Up (the most trusted brand in India21), Limca, Maaza, Citra and Gold

Spot provided not only physical manufacturing, bottling, and distribution assets but also

strong consumer preference. This combination of local and global brands enabled Coca-

21

Cola to exploit the benefits of global branding and global trends in tastes while also

tapping into traditional domestic markets.

Leading Indian brands joined the Company's international family of brands, including

Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the

company launched the Kinley water brand and in 2001, Shock energy drink and the

powdered concentrate Sunfill hit the market.

From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one

of the country’s top international investors.22 By 2003, Coca-Cola India had won the

prestigious Woodruf Cup from among 22 divisions of the Company based on three broad

parameters of volume, profitability, and quality. Coca-Cola India achieved 39% volume

growth in 2002 while the industry grew 23% nationally and the Company reached

breakeven profitability in the region for the first time.23 Encouraged by its 2002

performance,

Coca-Cola India announced plans to double its capacity at an investment of $125 million

(Rs. 750 crore) between September 2002 and March 2003.

Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven

wholly-owned bottling operations supplemented by seventeen franchisee-owned bottling

operations and a network of twenty-nine contract-packers to manufacture a range of

products for the company. The complete manufacturing process had a documented

quality control and assurance program including over 400 tests performed throughout the

process.

The complexity of the consumer soft drink market demanded a distribution process to

support 700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay

22

three wheelers, and trademarked tricycles and pushcarts that were used to navigate the

narrow alleyways of the cities.25 In addition to its own employees, Coke indirectly

created employment for another 125,000 Indians through its procurement, supply, and

distribution networks.

COCA-COLA :VISION

VISION FOR SUSTAINABLE GROWTH

PROFIT: Maximizing return to shareowners while being mindful of our

overall responsibilities.

PEOPLE: Being a great place to work where people are inspired to be the

best they can be.

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

anticipate and satisfy peoples’ Desires and needs.

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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

Suppliers as an opportunity to make reasonable when creating real value added in

environment of system wide teamwork, flexible business system and continuous

improvement.

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

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PRODUCT PROFILE

DIFFERENT BRANDS OF COMPANY

The Coca-Cola Company offers a wide range of products to the customers including

beverages, fruit juices and bottled mineral water. The Company is always looking to

innovate and come up with, either complete new products or new ways to bottle or pack

the existing drinks. The Coca-Cola Company has a wide range of products out of which

the following products are marketed by HCCBPL:

In the Cola Section:

25

In the Lemon Section

In the Orange & Apple section:

26

In the mango section:

In the juice section :

In the Soda Water and Bottled Mineral Water section:

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BRANDS TAGLINE

Thumsup - Taste the thunder

Cocacola - Open happiness

Sprite - Seedhi baat no bakwaas ,clear hai

Limca - Fresh ho jao

Fanta - Go bite

Maaza - Bina guthli wala aam

BRAND AMBASSDORS

Thumsup -Akshay Kumar

Cocacola -Aamir Khan

Sprite -Shahrukh Khan

Fanta -Genelia D’souza

Limca -Riya Sen

ABOUT BRANDS

THUMSUP

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It is the leading brand of the company. It has cola flavor. Thumsup is the highest selling

beverage brand of India. Mostly like by the youngsters specially boys.

The competitor of the brand on same category is Pepsi.

COCACOLA

This is the worlds most famous & old brand. This brand is specially liked by teenagers &

youngsters.

The competitor on the cola category is Pepsi.

SPRITE

This brand is the one of the fastest growing brand in the country. Sprite is liked by all age

groups & people. Jan 09 report of “The times of India” claims sprite to be the second

brand in sales after Thumsup

Competitor : 7up & Mountain dew

LIMCA

Limca is cloudy lemon in flavor. This is very unique in this category .It has white in

color.

Competitor : Nimbooz

FANTA

Fanta has two flavors apple & orange. This is very popular drink among females.

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Competitor: Mirinda, Parle’s Appy fizz

MAAZA

This has mango flavor. Maaza is popular among children and women.

Competitor: Slice, frooti

MINUTE MAID pulpy orange

This is orange juice .This contains no sugar & added flavor .This is a family drink.

Competitor : Tropicana

KINLEY

This comes in two variety-mineral water & soda. Mineral water is used by all but soda is

commonly used for alcoholic purpose by adult people.

Competitor : Aquafina, Bisleri

PACKAGING DETAILS

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1.2 LTR1 LTR

600ML

2 LTR

250ML

200ML

300ML

PACK

SODA

LIMCA

SPRITE

FANTA

THUMSUP

COKEMAAZA

YES

YES

NO

YES

NO

NO

NOYES

YES

YES

NO

YES

YES YESYESYESYESYES

NONOYES

NONOYES

NO

YESYESYESYESYES

NOYESYESYESYES

NONONONONO

NOYESYESYESYES

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NUMBER OF BOTTLES IN A CASE

32

1.2 LTR

1 LTR

600ML

2 LITRES

250ML

200ML

300ML

PACK NO.OF BOTTLES IN A CASE

12

6

24

9

24

24

24

COMPETETIVE AREA

Competitive area among Coke & Pepsi

Coca-Cola India Pvt Ltd maintained its leading position in soft drinks in India, followed

by PepsiCo India Holdings Pvt Ltd in 2006. Whilst the retail volume shares of Coca-Cola

India and PepsiCo India slipped in 2006, as a result of the growing health concerns

caused by the aftermath of the pesticides controversy, both maintained a comfortable lead

over the other manufacturers. Parle ,Bisleri Ltd has steadily gained shares from the

carbonates giants over the review period, to emerge as the third ranked company in 2006.

The battleground for beverages has moved from carbonates to bottled water and

fruit/vegetable juice, with manufacturers turning their attention towards these healthier

beverages, as consumer interest continues to surge forward. A number of new players

have entered fruit/vegetable juice and bottled water, vying for a slice of the growing pie.

While cricket had always been the most popular sport in India, with new

technology coming into cricket from coverage to sports gear to day/night versions of the

game, it was set to acquire the status of a religion in the sub-continent. Pepsi picked up

the opportunity early on by not only contracting the rights to all Tests and One Day

Internationals (ODIs) played in India, but also signing up top performers early such as

Sachin Tendulkar and Rahul Dravid and creating some very cutting edge and memorable

advertising campaigns with them.

The distribution network of Coca cola had 6.5 lakh outlets across the country , which the

company is planning to increase to 8 lakhs . On the other hand Pepsi Co's distribution

network had 6 lakh outlets across the country which it is planning to increase to 7.5

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Lakh .

ADVERTISING

Advertising is a non promotion of goods & services by sponsor who can identified and

who has paid for his communication. Their purpose of advertisement is to sell something

goods or services,idea ,person or place.

BRAND AMBASSDORS & TV COMMERCIALS

COLA WAR (neck to neck)

Bollywood rising stars Asin (left) for Pepsico’s Mirinda,Genelia D’souza (Right) for

cocacola’s Fanta

34

.

Tennis star Sania Mirza for Sprite

35

Bollywood star Aamir Khan for Coke

Bollywood star Akshay kumar for Thums up

36

Sprite “seedhi baat” TV add

Limca “fresh ho jao” TV add

37

Minute maid pulpy orange TV add

Bollywood superstar Shahrukh Khan new Brand Ambassador of Sprite

38

PROMOTION BY THE COMPANY

Promotional strategy during IPL matches

Lucky Coupon Dinner with kings XI Punjab

Sprite “kholega toh bolega” IPL Season 2

Riding on the passion of T20 cricket amongst consumers, Brand Sprite, Official Pouring

Partner of Kolkata Knight Riders (KKR) had  announced the launch of a Special edition

‘Sprite Kolkata Knight Riders’ bottle. The latest initiative was a part of brand Sprite’s

larger consumer engagement program to leverage the second season of DLF IPL, 2009.

Independent research reports have shown, out of the 230 million mobile phone users in

the country, the youth continues to be the largest users of mobile phones. Combining this

39

key insight with the passion of T20 cricket, company had launched a special edition

‘Sprite Kolkata Knight Riders’ bottle with insignia of key players.  

Complimenting the innovation, Sprite was also rolling out a special ‘Kholega Toh

Milega’ digital initiative in association with KKR and Nokia.

In the offer consumers just need to drink Sprite and look out for a unique 9 digit code

under the crown and SMS the code. Lucky consumers get once-in-a-lifetime opportunity

to meet Shahrukh Khan and members of the KKR team. In addition, consumers also get a

chance to win a Nokia mobile phone every hour. The entire initiative was applicable

RGB and also on all PET packs of Sprite.

To create awareness about ‘Kholega Toh Milega’ digital initiative, the company had

launched a mass media campaign featuring Shahrukh Khan, owner KKR, to be telecast

on all the leading TV channels across India.

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PROMOTION DURING OFF SEASON

Limca Launches ‘Laptop Ki Barish’ Consumer Initiative

Coca-Cola India has announced the launch of its innovative ‘Limca ‘Laptop Ki Barish’

consumer initiative nationally. As part of this unique initiative a computer generated

lucky draw would provide consumers a chance to win “HP Mini Laptop” every hour for

the next 45 days. The initiative is applicable to 200ml, 300ml returnable glass bottles

(RGB) and also on 500 ml, 600 ml 1.25, 1.5, 2 & 2.25 liters PET bottles of Limca. As

part of the under the crown initiative consumers just need to SMS “LIMCA” followed by

a 9 digit unique code to 58558 from their GSM / CDMA mobile phones.

The national initiative is designed to leverage the popularity of digital media like

mobile phones (Both GSM & CDMA & IVRS), internet and laptops amongst soft drink

consumers and would run from 1st August to 14th September, 2009

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4. REVIEW OF LITERATURE

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

outlets for 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

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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 coke’s product. Therefore not

other product of any other company may not 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-

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.

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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.

Activation Elements

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

outlets. Detail of activation elements must available at GROCERY STORES:

1. WARM DISPLAY RACK

2. SHELF DISPLAY

SHELF DISPLAY

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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

6. TENT CARD

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TYPES OF OUTLETS

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

Volume

Channel

Income group

1. 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 - <200C/s per year

2. CHANNEL

(A) GROCERY STORE

Grocery (customer profile): Store stocking a variety of regular uses household items. The

channels provide an opportunity for penetration as it propels home consumption.

It includes all kirana stores,juice , departmental stores, supermarkets, provision stores

etc.

Necessary Availability - 2 liter and 300ml

(B) EATING & DRINKING CHANNEL 1

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Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller

dhabas. These outlets offer multiple opportunity to effect sales as people usually order

something to drink along with food. It includes

- Restaurants

- Bars and Pubs

- Dhabas

- Cafes

(C) EATING & DRINKING CHANNEL 2

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

(D) CONVENIENCE CHANNEL

Pan/bidi shops (customer profile) : This segment includes PAN BIDDI outlets that

stock cigarettes, mint, confectionary. It covers STD/ISD phone booths, travel channel etc.

Small outlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml.

3. 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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Market Segmentation models

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CHANNELCLUSTER

Based on consumption

occasion

Visi-cooler position, display & Brand Order Compliance

Under RED market developer has to ensure that shopkeeper must display all

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,

MinuteMaid Pulpy Orange, Kinley (mineral water & Soda water).

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TYPES OF VISI COOLER/CHESTCooler - 2C/s Chest- 4C/s

4C/s 10C/s> above

7C/s

9C/s

20C/s

30C/s

RED SCORE TRACKING

The performance of market developer is measured on the basis of score tracking.

Tracking will be done of the following Parameters:

1. Visi-cooler 35 points

2. Availability 40 points

3. Activation Elements 25 points

TOTAL 100 points

These 100 points are distributed in various Parameters explained in the following

table

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RED Scoring Sheet

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CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

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Manufacturing Plant, FAIZABAD

(H.P)

Sales and Distribution Operations

Distributors

Outlets

Outlets

DISTRIBUTION NETWORK

HCCBPL has a wide and well-managed network of salesmen appointed for taking up the

responsibility of distribution of products to diverse parts of the cities. The distribution

channels are constructed in such a way that the demand of customers is fulfilled at the

right place and the right time when they need it.

A typical distribution chain at HCCBPL 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 different routes,

and every salesman is assigned to one particular route, which is to be followed by him on

a daily basis. A detailed and well-organized distribution system 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 OF PRODUCT ACCORDING TO LOCALITY

Coca-cola company distributes their schemes according to area. Area or place where

soft drinks sold in a large manner, on those place company gives good schemes to

shopkeeper and retailer. Place like railway station bus stand are consider in this category

and place which have low selling where company gives small schemes to the

shopkeeper.

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Criteria for providing free chilling equipment

An ice box is provided for the sale of 1-2 crates daily to the retailers.

For the sale of 5-6 crates daily a visi cooler of 4 crates is provided.

For the sale of 7-8 crates daily a visicooler of 7 crates is provided by the

company.

If the sale exceeds 9 crates daily then a visicooler of 9 crates or deep fridger is

provided by the company,

A STEPLIZER OF 1 KV to 5 KV is provided with the visi cooler & chest cooler,

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SALES PROMOTION

PUSH & PULL STRATEGY

PUSH STRATEGY:-

HCCBPL is using Push strategy in which they use its sales force and trade promotion

money to induce intermediaries to carry, promote and sell the product to end users i.e.

consumers.

For example-as HCCBPL is giving free pet bottles and other trade schemes to

distributors, agency owners and retailers.

PULL STRATEGY:-

HCCBPL is also using Pull strategy in which they are using advertising and promotion to

persuade consumers to ask intermediaries for the company brand product by this way

HCCBPL inducing customer to order it from shopkeeper.

For example-HCCBPL is using flanges, display racks, tier racks, standees, mobile

hangers and visicooler brand strips.

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5. RESEARCH METHADOLOGY

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-

(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 their to make the survey.

RED scoring sheet

Area of Survey-Rekabganj, Chowk, Niyawa, Angoori Bagh, Civil line, Fatehganj,

Devkali,Darshan nagar,Gudhi Bazar,Faizabad bus stand

Sampling plan

Sampling unit - Owners of the retail outlets.

Sampling size- 250 outlets

Sampling procedure-Random sampling

Sampling method- Retailers survey

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SECONDARY DATA- For the secondary study data was not available so it is taken

from company records.

AREA- Rekabganj,

Chowk,

Niyawa,

Angoori Bagh,

Civil line,

Fatehganj,

Devkali

Darshan Nagar

Faizabad Bus Stand

Gudhdi Bazar

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SIZE OF VISICOOLER

IS PRESELLING IS GOOD OR THERE IS SOME GAP

HOW MUCH HAS THE VISIBLE PRODUCT?

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LEADING BRAND OF COCACOLA

CHANNEL OF COKE

OUTLET BELONG TO WHICH CLASS

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INCOME GROUP

MARKET SHARE

DIVISION OF MARKET

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RETAILER FAMILIAR WITH PROJECT RED

Project RED is a live project. It can broadly be classified in two stages, which can be

described as follows.

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Initial Stage:-

This stage comprises of Product Knowledge and Process Knowledge.

The product knowledge means the knowledge of every product and its variants

offered by the company-

The Process Knowledge means the knowledge about the distribution of the

product and its variants from the sales depot to the different retailers of the city.

The actual knowledge about the product and the process was attained with the help of

Route Riding.

Route Riding means to visit different outlets on the commuting vehicle (vehicle which

carries coke product from depot to different outlets) along with salesman. By the route

riding it is very easy to grasp and understand how the cola market actually works. Route

riding elaborated the factors influencing the cola market and provided the information

about the competitor’s strategies and schemes which they offer to the retailers in order to

gain advantage. Retailer’s grievances were best know with the help of route riding

through personal interaction. Also with route riding any one can know about the sales

status of an outlet on a daily basis.

Later stage:

This stage comprises of the serious implementation of the project RED in

the area of Rikabganj, Chowk, FAIZABAD. To ensure effective and fruitful

implementation of the campaign, market developers (M.D.) were appointed by the

company. Market Developers carried the responsibility to handle all the activities

under the R.E.D. campaign.

The first step involved in this stage was to select the outlets where the

campaign has to be implemented. The outlets are selected on the basis of some

parameters like annual sale of the outlet, type of the outlet, space available at the outlet

etc.

PJP(permanent journey plan)

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(P.J.P. plan):. 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 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.

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.

HYPOTHESIS

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Hypothesis

(A) Null hypothesis (H0 ):The coke has more consumption then Pepsi.

(B) Alternate Hypothesis (H1): The coke has not more consumption then Pepsi.

(C) Let the level of significance is(α)= 5%In testing the hypothesis since the

test is two tailed is Z=+-1.96

TEST FORMULA

Z= P1-P2 √PQ[1+ 1] n1 n2

P= n1P1 +n2P2 n1+n2Q=(1-P)

where

P-Total population proportion of Coke & Pepsi

P1-Sample proportion of coke

P2-Sample proportion of Pepsi

n1- sample size of coke

n2- sample size of Pepsi

After calculated value is Z=1.34 which is less then calculated from the table

Z=1.96 hence null hypothesis is accepted.

CONCLUSION –The coke product is more consumption then Pepsi.

2)Hypothesis

(A)Null hypothesis (H0 ):The market share of coke is higher then Pepsi.

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(B)Alternate Hypothesis (H1): . The market share of coke is not higher then

Pepsi.

(C)Let the level of significance is(α)= 5% which the hypothesis is tested.

FORMULA

Z = P*-P √P(1-P) n

P=Sample proportion

P*=Population proportion

n=sample size

The calculated value is less then value calculated from the table that is 1.96,

So the null Hypothesis is accepted.

CONLUSION- The Market share of coke is higher than Pepsi

3)Hypothesis

(A)Null hypothesis (H0 ):Presale is good for the company.

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(B)Alternate Hypothesis (H1): Presale is not good for the company

(C)Let the level of significance is(α)= 5% which the hypothesis is tested.

FORMULA

Z = P*-P √P(1-P) n

P=Sample proportionP*=Population proportionn=sample size

The calculated value(1.56) is less then the value calculated from the table that is 1.96 hence hypothesis is accepted.

Conclusion – Presale is good for the company.

SWOT ANALYSIS

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1. STRENGTHS:-

DISTRIBUTION NETWORK: The Company has a strong distribution network

consisting of a number of efficient salesmen, 700,000 retail outlets and 8000

distributors. The distribution fleet includes different modes of distribution, from

10-tonne trucks to open-bay three wheelers that can navigate through narrow

alleyways of Indian cities and trademarked tricycles.

STRONG BRANDS: The Coca-Cola has been named the world's top brand for a

fourth consecutive year in a survey by consultancy Interbrand. It was estimated

that the Coca-Cola brand was worth $70.45billion. People all over the world

enjoy coca cola products more than 1.3 billion times per day.

COST OF OPERATIONS: The production, marketing and distribution systems

are very efficient due to forward planning and maintenance of consistency of

operations, which minimizes wastage of both time and resources, leads to

lowering of costs.

2: WEAKNESSES:

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LOW EXPORT LEVELS: The brands produced by the company are brands

produced world wide thereby making the export levels very low. In India, there

exists a major controversy concerning pesticides and other harmful chemicals in

bottled products including Coca-Cola .Therefore, people abroad, are apprehensive

about Coca-Cola products from India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO

INVEST AND ACHIEVE ECONOMIES OF SCALE:

The Company’s operations are carried out on a small scale and due to

Government restrictions and ‘red-tapism’, the Company finds it very difficult to invest in

technological advancements and achieve economies of scale.

3: OPPORTUNITIES:

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LARGE DOMESTIC MARKETS: Coca-Cola India claims a 60.1 per cent

share of the soft drinks market; this includes a 42 per cent share of the cola

market. Other products account for 18.1 per cent market share, chiefly led by

Limca.

EXPORT POTENTIAL: The Company can come up with new products, which

are not manufactured abroad, like Maaza etc and export them to foreign nations. It

can come up with strategies to eliminate apprehension from the minds of the

people towards the Coke products produced in India.

HIGHER INCOME AMONG PEOPLE: Development of India as a whole has

lead to an increase in the per capita income thereby causing an increase in

disposable income. The beverage industry can take advantage of such a situation

and enhance their sales.

4: THREATS:

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IMPORTS: As India is developing at a fast pace, the per capita income has

increased over the years .If consumers shift onto imported beverages rather

than have beverages manufactured within the country, it could pose a threat to

the Indian beverage industry as a whole in turn affecting the sales of the

Company.

TAX AND REGULATORY SECTOR: The tax system in India is accompanied

by a variety of regulations at each stage on the consequence from production to

consumption. Therefore, this can limit the growth of the Company and pose

problems.

SLOWDOWN IN RURAL DEMAND: Low per capita disposable income, large

number of daily wage earners, poor roads; power problems; and inaccessibility to

conventional advertising media. All these problems might lead to a slowdown in

the demand for the company’s products.

CHANGING OF CONSUMERS PREFERENCE: The Company should keep a

eye on the changing preferences of the consumers.

PUSH & PULL STRATEGY

70

PUSH STRATEGY:-

HCCBPL is using Push strategy in which they use its sales force and trade promotion

money to induce intermediaries to carry, promote and sell the product to end users i.e.

consumers.

For example-as HCCBPL is giving free pet bottles and other trade schemes to

distributors, agency owners and retailers.

PULL STRATEGY:-

HCCBPL is also using Pull strategy in which they are using advertising and promotion to

persuade consumers to ask intermediaries for the company brand product by this way

HCCBPL inducing customer to order it from shopkeeper.

For example-HCCBPL is using flanges, display racks, tier racks, standees, mobile

hangers and visicooler brand strips.

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10. 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 because

JO DIKHTA VO BIKTA HAI

Definitely when sales increase then profits also increases.

With the help of this project company has increased its sale in Faizabad region and also

company can measure or check the performance of each retailers working all over the

world with COCA COLA COMPANY.

FINDINGS

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According to the demand of outlet owners, delivery of products are not

made available in the outlets.

Efficient brands of coca – cola are not available in outlets.

Sales people and delivery persons do not visit the outlets on a regular

basis.

Advertisement materials are not available in the right time at the right

place i.e. Different Channels like Grocery, Convenience, E&D.

Many outlet owners have complains on improperly working visicooler

i.e. its cooling Capacity is low or its lights are not working.

Improper management is seen as No mechanics visit the outlets despite

of Complaints issued by outlet owners.

Visicoolers are not placed at their Prime locations in many outlets

Many outlet owners express deep in satisfaction towards coca-cola as

they do not get any Prize or Cash discount as they receive from other b

companies.

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FACTS

The most popular flavor is Thumsup in the whole market.

Cocacola is the market leader and Pepsi is the market challenger.

Thumsup has the highest sales from the Coca cola’s side and from the Pepsi‘s side

mountain Dew has the highest sales.

Aquafina has more sales then Kinley in mineral water segment.

Pepsi provides more schemes then Cocacola.

Sprite has the fastest grownup brand in the clear lime segment in the recent years.

In the off season when the sale is reduced retailers want more schemes.

Minute maid has not getting good response from the market.

SUGESSTIONS

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Delivery position should be maintained to get good return from the market.

The company must try to make different brands of Coca-Cola available at every

retail outlet whether it is large or small, otherwise the consumer may go for

substitute.

Sales People and delivery persons should properly monitor the market whether

stocks are available and are properly utilized in the market or not.

We can provide them beautiful display racks, tablemats, menu-cards etc,

containing the trademark and brand name of the company.

Display material should be provided to the retailers on more regular basis to

increase the sales level.

Maintenance work of refrigerator; i.e. purity must be improved.

The company should take steps to replace damaged or unsellable Coca-Cola

goods frequently from the retailers.

The Company employees should make direct contact with the consumers, so that

they may aware with real situation of the market and consumers attitude towards

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

At every petrol-pump we should install Fountain Machine. It will be helpful in

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

company among the consumers.

11. QUESTIONNAIRE

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NAME OF OUTLET OWNER:

AREA

CONTACT NO.:

(A ) GENERAL QUESTIONS

1).Type of channel

a) Grocery ( )

b) Eating & Drinking ( )

c) Convenience ( )

2). Type of category

a) Diamond ( )

b) Gold ( )

c) Silver ( )

3). Are you familiar with project RED?

a) Familiar ( )

b) Unfamiliar ( )

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4).Your belief on Coca Cola increased from Project RED by?

a) 25% ( )

b) 50% ( )

c) 75% ( )

d) 100% ( )

5).What kind of incentives you are getting from distributors?

a) Schemes ( )

b) Prizes ( )

c) Scratch coupons ( )

d) Cash discount ( )

e) None ( )

( B ) AFTER PROJECT RED

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6) Improvement in condition of visicooler?

a) Yes ( )

b) No ( )

c) As it is ( )

7) Has the availability of product increased?

a) Yes ( )

b) No ( )

c) As it is ( )

8) Has the activation of outlet increased?

78

a) Yes ( )

b) No ( )

c) As it is ( )

9) Is the delivery of Coca cola’s product increased?

a) Yes ( )

b) No ( )

c) As it is ( )

(C ) PERFORMANCE OF RED TEAM

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10) What is the performance of Market developer?

a) Poor ( )

b) Good ( )

c) Better ( )

d) Best ( )

11) What is the frequency of deliveryman visit?

a) Daily ( )

b) Weekly ( )

c) Monthly ( )

d) Never ( )

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12) What is the frequency of visit of DGM/MEM?

a) Daily ( )

b) Weekly ( )

c) Monthly ( )

d) Never ( )

13) Do you want to continue with RED project?

a) Continue ( )

b) Discontinue ( )

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14) Any suggestion?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………

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DECLARATION

I, RAKESH KUMAR AGRAWAL, hereby declare that this Project titled

“INCREASING IMPACT OF RED (RIGHT EXECUTION DAILY) in Faizabad city for

“ HINDUSTAN COCACOLA BEVERAGES PVT LTD.” Is based on live project

study conduced by me under the guidance of Mr.Vindhya Srivastava.

This project has not been submitted earlier for the award of any other

Degree/diploma to any other Institute or University.

PLACE: RAKESH KUMAR AGRAWAL

DATE :

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REFERENCES

BOOKS

Marketing Management : Philip Kottler

Ramaswamy

Marketing Research : Bound, Stash & Others

“Booklet of RED”, COCA COLA INDIA

INTERNET

www.coca-cola.com

www.cocacolaindia.com

www.oligopoly.com

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www.medianewsline.com

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