Marketing of Soft Drink

8/23/2019 Marketing of Soft Drink

1/55

CHAPTER

1.

1.1 INTRODUCTION

Under modern marketing concepts, marketing activities are centered

on the customer. Most producers do not sell their goods directly to the

customers. Between them stands a set of intermediaries performing a

variety of functions. These intermediaries constitute a marketing channel or

distribution channel.

Despite the rising intensity of brand war, there is a lot of ignorance

on what merchandising is and how it helps in brand building. though noresearch has been has been done on the impact of merchandising on

purchase decision, it is believed that at least two third of buying decision

are made at the point of sale. In apparel and dress accessories, there is much

higher awareness of merchandising and its utility. Merchandising is a ability

to visually demonstrate and display a product, show its features and

properties and bring out some of its esoteric. Going by recent trends

merchandising is gaining in importance each day. Coke, Bausch and laumb

and HLL have used it fairly successfully. The heightened awareness of role

of merchandising in recent times is because of the entry of foreign brands

into the country. However, in India most retailers, do not own there

merchandising. This will probably happen sooner than later and would be

fallowing in the name of big overseas names such as Walmart and Marks

and Spencer, which do there merchandising.

Sales , or the activity of selling, form an integral part of commercial

activity. Mastering sales is considered by many as some sort of persuading

"art". On the contrary, the methodological approach of selling refers to it as

a systematic process of repetitive and measurable milestones, by which a

salesperson relate his offering enabling the buyer to visualize how to

achieve his goal in an economic way.

1


2/55

Selling is a practical implementation of marketing; it often forms a

separate grouping in a corporate structure, employing separate specialist

operatives known as salesmen (singular: salesman or salesperson).

The successful questioning to understand a customers goal, the further

creation of a valuable solution by communicating the necessary information

that encourages a buyer to achieve his goal at an economic cost is the

responsibility of the sales person or the sales engine (e.g. internet, vending

machine etc).

The primary function of professional sales is to generate and close

leads, educate prospects, fill needs and satisfy wants of consumers

appropriately, and therefore turn prospective customers into actual ones.

From a marketing point of view, selling is one of the methods of promotion

used by marketers. Other promotional techniques include advertising, sales

promotion, publicity, and public relations.

Various sales strategies exist, such as tit-for-tat which is best if

ongoing dealings and interactions are expected. This insight is behind so-

called consultative sales process which is used by Saturn to sell cars, as well

as for some direct Business-to-Business sales.

2


3/55

1.2 IMPORTANCE OF THE

STUDY

This project report studies those factors, which are related to product

availability at retailer shops and brand preference of customers.

This report is based on the data collected from different retail outlets

for soft drinks like Restaurants, Canteens, General stores, Grocery shops

etc. of Jammu. This research is necessary to find out the needs and

satisfaction level of the existing retailers. Another important reason was to

find out about the amenities they are provided with for storage &

merchandising, sales. It becomes very vital for the companies to adapt to

change as soon as possible by providing the fastest and best service in order

to beat competition and gain a huge customer base. This research could

help the company in making quick and apt decisions considering the

retailers.

Another major source of feedback about a product comes from its

end user. The customer decides how much the product is worth in terms of

its costs, mobility, knowledge, income and service provided. Customers

perceptions and expectations of a product often results in its variations in

sale.

Today Coca-Cola Company sells its product in nearly 200 countries

and has been in a continuous improvement mode. Within the country they

have established themselves as a benchmark for customer service as also for

the quantity product. Share my dream said Coca-Cola to the Indian

consumer in 1993. Coke entered the A & M Top Brands survey in 1994 of

No 31 with a power score of 29.9 a year after its reentry into India. Among

soft drinks, Coke was stronger than Pepsi among the older people (evidently

nostalgia was at work) while Pepsi obviously scored above Coke with

Generation next.

By buying the national brands Thums up, Limca and Gold Spot from

Parle Beverages. Coca-Cola has also acquired Cadbury Schweppes soft

drink brands Crush. Canada Dry and Sport Cola in early 1999 and in

3


4/55

Oct2000 it acquired distribution right of these brands from IFB Agro

Limited.

Pepsi although started a couple of years before Coca-Cola in 1991

has a lower market share today. It has bought over Mumbai based Dukes

range of soft drink brands. Both the Cola manufacturers came up with their

own market share figures and claim to have increased their share.

After undergoing a complete restructuring of its set up, Coca-Cola India

(CCI) Ltd is confident of making profit two of four years down the line.

The company has developed four core business strategies.

Think local, act local approach, both in terms of manufacturing

and distribution, as well as marketing.

Focusing on all non-alcoholic commercial beverage

opportunities.

Ensuring cost and process efficiencies in all aspect of the

business to maximize returns on the infrastructure investment and

Nurturing a people-driven company.

The company has also worked on its distribution strategy by

increasing the outlet base. The focus will be on increasing rural

penetration, profitability, and hub-and-spoke and own your assets (OYA)

concepts. Coca-Cola has adopted a local consumer specific marketing

strategy.

Thus this project helps to throw light on the retailer and customers segments

of marketing Coca Cola products.

4


5/55

1.3 AIMS AND OBJECTIVES OF STUDY

Any project work without aims and objectives is directionless. Aims

and objectives act as limiting boundaries to avoid any mistakes and errors

during project work.

The objectives of this project are:

1. To check the availability of Coca Cola products as well as its

competitors product in the market.

2. To assess the awareness of dealer about schemes.3. To find out the time taken for delivery

4. To know how the rack display system and availability.

5. To check the availability of visi cooler and racks

6. Consumer awareness of all brands of coca cola.

7. To know the consumer preferences of brands available in the market.

8. To check which brand is most consumed and which is less.

9. To re launch product, if need be.

.

5


6/55

1.4 SCOPE AND LIMITATIONS OF THE STUDY:

1. The scope of the study includes the availability of the Coca Cola and

Pepsi products and customer preferences for various brands.

The geographical scope of the study includes Jammu only.2.

3. The organizational scope lies in strengthening the distribution and

retailer network as the distributor and the retailers are the pillars on

which the success of a company depends

4. The study was limited to a period of 50 days.

5. The sample size was restricted to end user and 100 retailers.

6


7/55

1.5 Methodology

This unit contains the following topics:

1. Conceptualization

2. Methods of data collection

3. Sampling

CONCEPTUALISATION

Defining of Research

Research in common parlance refers to search for knowledge.Research is an endeavor to discover answers to problems (intellectual and

practical) through the application of scientific method to the knowable

universe. Research is essentially a systematic enquiry seeking facts through

objective verifiable methods in order to discover relationships among them

and to deduce from them board principles or laws.

Research refers to a critical careful and exhaustive investigation or an

enquiry or examination or experimentation having as its aim the revision of

expected conclusions, in the light of discovered facts.

According to John W. Best research may be defined as the

systematic and objective analysis and recording of controlled observation

that may lead to the development of generalizations, principles or theories

resulting in prediction and possibly ultimate control of events.

7


8/55

METHODS OF DATA COLLECTION

Data collection can be grouped into two types

1) Primary data

2) Secondary data

Primary data

Data, which is collected for this specific purpose at hand, is called primary

data. It is customize according to the need of the researcher and focuses

exclusively on the current research problem. The collection of primary data

is costly and time consuming

In situations where it is impossible to use the secondary data keeping in

view the requirements of the study or in case where there is no secondary

data available, the only way is to collect primary data.

This study is based on the primary data that was collected by the researcher

through:

1) Drafting Questionnaire

Sources of data:

1) Retailers

2) Cinema halls

3) Hotels

4) Consumers

5) Restaurants

8


9/55

Drafting Questionnaires:

The soft drink preference, taste, perception on retailer, knowledge,

availability of soft drink and many more things were found out with the

help of questionnaire. For this purpose a sample of 200 outlets were taken

from the Solapur City and a research was made on them.

During the research two questionnaires were prepared.

Questionnaire for the Retailers and Customers.

The questionnaire for the retailers was a structured questionnaire.

The questionnaire of the customers was a mixed type of questionnaire with

close-ended and open-ended questions.

(Sample enclosed in Annexure)

Along with the questionnaire, a interview of the retailer & customer were

also taken for the collection of required data.

The interview technique used was a structured one i.e. the interview was

based on the predetermined questions and standardized techniques.

Observation:

In this, the observation was focused on availability of product

availability of Sales Generating Assets (SGAs). The working condition of

the refrigerator, proper display of products etc.

9


10/55

Secondary Data:

Secondary data may be defined as data that has been collected earlier

for some purpose of the present study. Any data that is available prior to the

commencement of the research project is secondary data and therefore

secondary data is called as historical data. Source of secondary data is

classified into two categories that are: published statistics and unpublished

statistics.

The secondary data was gathered from company manuals and

brochures, company files and records, websites and reference books

mentioned in the bibliography.

Group of elements is referred as a sample and the process is of

selection is called sampling.

The sample size chosen for the survey was 100 retailers of JAMMU

city & for the Brand preference 100 people of different age groups from

different parts of city.

Sampling method:

The sampling method used was convenience sampling.

Graphical Presentation:

1) It provides an attractive and impressive view.

2) It simplifies complexity of data.

3) It provides easy comparison of two or more phenomenon.

Graphical Presentation of the statistical data gives a pictorial effect. It

enables us to represent data in simple, clear and effective manner. The raw

data that has been collected is used for calculating percentages of the

response to the questionnaire. These percentages are then plotted on the

graph

10


11/55

CHAPTER

2

2.1 HISTORY OF THE ORGANIZATION

Coca-Cola Organization

History of Coca-Cola

Coca-Cola is the drink other than water, which is mostly consumed

by the world. Coca-Cola is available in almost every country of the world

and nearly 100 Cores of the bottles and cans are sold all over the world

every day.

Like many people who change the history, Dr. John Pemberton, a

Atlanta Based civil war veteran and a Pharmacist was inspire by the simple

curiosity. He loved tinkering with medical formula and one afternoon on 8 th

May 1986 while searching for a quick cure for headaches he stipend up a

fragrant caramel colored liquid.

Then he took that syrup to the soda fountain shop. Here, the mixture

was combined with carbonated water. They found it delicious it was put for

the sales by combining with the soda water for 5 cents a glass.

Pembertons accountant Frank Robinson named the drink COCA-

COL

A

. He was expert in calligraphy and he prepared the coca-cola logo,

which is used today. The daily sale was 12-13 drinks. The income earned in

the first year nearly $50. Mr. Pemberton was an investor than businessman.

He gradually lost interest in it. Over the course of three years, 1888-1891,Pemberton sold to Atlanta business Asa Griggs Candler for a total of about

$2300. Candler becomes the companys first owner and the first to bring

real vision to the business and brand.

11


12/55

Beyond Atlanta (1893-1904)

Candler, a born salesman transformed Coca-Cola from invention to

the business. He found out new and innovative ways to introduced people to

the new and exciting refreshment. Pemberton had used the word delicious

and refreshment to describe the word earlier. Candler emphasizes these

aspects of Coco-Cola for advertising. He gave away the coupons for

complimentary taste of Coca-Cola and outfitted the distributors with clocks,

calendars, urns etc. people saw Coca-cola everywhere. The aggressive

promotional worked. By 1895, Candler had built syrup plants in Chicago,

Dallas and Los Angeles.

Inevitably, the drinks popularity led to a demand to enjoy it in new

ways, in 1894 a Mississippi based businessman, Joseph Bieenharn become

first to put the bottles. He sent it to Candler who without enthusiasm. He

didnt realize then the importance of bottles. But after 5 years in 1899, two

lawyers Benjamin F. Thomas and Joseph B.Whitehead convinced him and

secured rights to bottle and sell the beverage. For the next thirty years

Candler made many changes to improve the drinks. He made some changes

in the formula of syrup. He advertised it a lot and extended the market

share.

Safeguarding the Brand (1905-1918):

On realizing the success of beverages by Coca-Cola, the copycat

beverages were started in U.S. like Co-cola, Coke-cola, Coke, Pepsi cola

etc. Thus many had not only used name but also the logo of coca-cola. The

company took the matter to the court and got success in getting its brand

secured. It also got the right to use the name Coke for the drink. This is

the only beverage known by two legal names i.e. Coke and Coca-cola.

Advertising focused on the authenticity of the Coca-Cola, urging the

customers to demand the genuine and accept no assured that the people

12


13/55

that the people were getting real Coca-Cola. In 1916, the Root glass co. of

Terrehaut, Indiana began manufacturing the famous contour bottles, which

remains to be the signature shape.

As the country roared into new century, the Coca-Cola Company grew

rapidly into Cuba, Puerto and other countries.

The Woodruff Legacy (1919-1940):

Perhaps no other person has more impact on Coca-Cola Company

than Robert Woodruff. In 1923, his father Earnest Woodruff purchased the

company from Candler & became the president. Robert Woodruff was his

son who was a marketing genius. He saw opportunities of expansion

everywhere. He captivated the foreign market with his innovative

campaigns. Coca-Cola traveled with the U.S. team to the 1923 Amsterdam

Olympics to the logo was emblazed on racing dogs sledges in Canada and

walls of bull fighting arenas in Spain. He pushed the developed and

distribution of six packs, the open top cooler and all innovations that made

it easier to drink Coca-Cola for people.

When it became clear to the company that housewives would be

more inclined to buy six packs, they could easily open at home; women

were sent door-to-door installing branded Coca-Cola openers. This is

exactly the kind of out of the box thinking that thrived under Woodruffs

leadership & it gave Coca-Cola nothing but a big success & also a big part

of peoples lives.

13


14/55

The War and Its Legacy (1940-1960) :

In 1941 World War II, thousands of American men and women were

sent to the battlefield overseas. The country and Coca-Coal rallied behind

them. Woodruff ordered every person in uniform gets a bottle pf Coca-

Cola in five cents, wherever he is whatever it costs to the company. In

1943, General Dwight D. Eisenhower sent urgent cablegram to Coca-Cola

requesting shipment for 10 bottling plants.

During the war many Europeans enjoyed their first taste of Coca-

Cola and when peace finally came Coca-Cola was doing a great business

there. Woodruffs vision that Coca-Cola be placed within arms reach

desire was coming true. By 1960 the number of countries whit bottling

operations nearly doubled.

Worldwide Customers (1960-1981):

After 75 years of amazing success with its brand Coca-Cola, the

company decided to expand with new flavors Sprite in 1961, Tab in 1963

and Frasca in 1966. The companys presence was increasing day by day and

Coca-Cola was the only company to sell packaged cold drinks in People

Republic of China.

The advertising for Coca-Cola, always an important and exciting of its

business came in tune with fun, playfulness and freedom. The international

appeal for Coca-Cola was embodied by 1971 commercial, where group of

young people from all over the world gathered on a hilltop in Italy to singId like to buy the world a coke.

14


15/55

Diet coke and New coke(1982-1989):

The 1980s, era of legwarmers, head warmers and the fitness craze

and a time of much change and innovation at the Coca-Cola. In 1981,

Roberto Goezueta becomes chairman of Board of directors and CEO of the

Coca-Cola Company. He completely overhauled the company with a

strategy he called intelligent risk taking. Among his bold moves was

organizing numerous US bottling operations into a public company, Coco-

Cola. It became top low calorie drink in the world, second in success to

Coca-Cola. In 1985 Goizueta realized new taste of Coca-Cola, the first

change in formulation in 99 years.As people had deep emotional attachment to the original formula the

new one become flop. The original was returned to the market as Coca-Cola

classic and the product began to increase its lead over the competition a

lead that continues to this day.

Coca-Cola Now (1990-- To -- Date):

In 1886, Coca-Cola brought thrilling refreshment to the patrons of

the small Atlanta pharmacy. Now well into 21st century, the company's

goal test to provide the magic every time in 200 countries with its entire 230

plus brands. Coca-Cola has consumers from Boston to Budapest to Bahrain

drinking its brands like Ambasa, Vegitabets, Frescolita etc. In remotest

corner of the globe, you can find the Coca-Cola.

In February 2000, Doug Daft became company chairman. Coca-Cola is the

huge international company but Daft's vision is to have the company

operate in a smaller locally run business. That's why Coca-Cola id

committed to local markets, to pay attention to what people from different

cultures and backgrounds like to drink, where and how they want to drink.

Every 10 seconds 1,26,000 people choose to reach for any one of the Coca-

Cola's brands and it is the company's mission to make the choice existing

and satisfying every single time.

15


16/55

2.2 COCA-COLA IN INDIA -- A BRIEF OVERVIEW :

Coca-Cola Export Corporation started its business activities in India

in 1997 with its corporate office in Atlanta and having its various plants

globally.

Janata Party Government stopped the Indian operations with view to

promote national brands with the changing government policies from time

to time multinationals were again permitted to operate in India. In 1988

Pepsi got the license.

Coca-Cola has started its operations in India in October 1993. This has

been re-entry in the Indian market after withdrawal of operations in 1977.The company's operations started from Agra and spread its wings all

over India.

The Indian market offers a strong consumer potential as majority of

population is in middle class category that is a strong consumer base for any

FMCG company like Coca-Cola to float its range op products.

Coca-Cola has acquired the brands like Thums Up, Gold Spot, Limca,

Maaza, Bisleri Soda etc. from Parley Company as these product have

achieved a strong consumer base and formed a brand image in the

Indian market during the re-entry of Coca-Cola in the Indian market in

1993. Thus, these products became the part of product range of Coca-Cola.

In addition, today the products of Coca-Cola have became the part of life

style. There are huge opportunities of expansion in India for Coca-Cola.

Today the Coca-Cola Company sells its product in nearly 200

countries and has been in continuous improvement mode. Within the

country, they have established themselves as a benchmark for customer

service as also for the quantity product. 'Share my dream' said Coca-Cola

to the Indian consumer in 1993, and Coke lovers welcomed the world's

best-known brand back with misty eyes. The younger lot just shrugged.

Coke entered the A & M Top Brands survey in 1994 of No 31 with a

power score of 29.9 a year after its reentry into India. Among soft drinks,

16


17/55

Coke was stronger than Pepsi among the older people (evidently nostalgia

was at work) while Pepsi obviously scored above Coke with 'Generation

next'.

By buying, the national brands Thumps up, Limca and Gold Spot from

Parle Beverages. Coca-Cola has also acquired Cadbury Schweppes soft

drink brands Crush, Canada Dry and Sport Cola in early 1999 and

now recently in Oct'2000 it acquired distribution right of these brands from

IFB Agro Limited.

Pepsi although started a couple of years before Coca-Cola in 1991

has a lower market share today. It has bought over Mumbai based Duke's

range of soft drink brands. Both the Cola manufacturers come up

with their own market share figures and claim to have increased their share.

After undergoing a compiler, restructuring of its set up, Coca-Cola India

(CCI) Ltd is confident of making profit two to four years down the line.

The company has developed four core business strategies. First, 'Think

local, act local' approach, both in terms of manufacturing and distribution,

as well as marketing. Second, focusing on all non-alcoholic commercial

beverage opportunities. Third, ensuring cost and process efficiencies in all

aspects of the business to maximize returns on the infrastructure

investment and fourth, nurturing a people-driven company. The company

has also worked on its distribution strategy by increasing the outlet

base. The focus will be on increasing rural penetration, profitability, and

hub-and-spoke and own your assets (OYA) concepts. Coca-Cola has

adopted a local consumer specific marketing strategy by promoting the

Coke brand in Delhi, Thums Up in Mumbai and Andhra Pradesh and Fanta

in Tamil Nadu. The recent focus is on its growth by almost 30 percent. It

also plans to introduce one or two of its international category products in

India next year. Coca-Cola India has also launched Kinley drinking water.

17


18/55

FAST FACTS

Population: 1billion.

Share of sales:

The Company leads the CSD market. With nearly 60 percent of market

share on its sales.

Annual per capita consumption:

Nine (eight-ounce serving)

System employment:

Approximately 10, 000 people.

System Investment: More than US$ 1 billion since 1993.

Investment, Employment and Economic impact of Coca-Cola in

India :

Coca-Cola India has made significant investments to build and

improve its business in India, including new production facilities,

wastewater treatment plants, distribution systems and marketing equipment,

In the past decade, the Coca-Cola has invested more than US$ 1 billion in

India. As such, Coca-Cola is one of the country's biggest foreign investors.

In 2003, it has pledged to invest more US$ 1 million in its operations.

The Coca-Cola business system directly employs approximately

10000 local people in its operations in India. In addition, several

independent studies have documented that, by providing opportunities for

several local enterprises, the Coca-Cola also generates a significant

employment multiplier effect. In India, they have indirectly created

employment to nearly 125000 people in related industries through their vast

procurement, supply and distribution system.

18


19/55

Bottling operations:

The Coca-Cola system in India has 27 wholly company owned

bottling operations and 17 franchisee- owned bottling operations. A

network of 29 contract packers also manufactures a range of products for

the Company.

Almost all goods and services required to produce and market Coca-Cola

products in India are made locally, sometimes with the help of technology

from the Company. The complexity of Indian market has reflected

in the distribution fleet, which includes 10 tonne trucks; open bay three

wheelers that can navigate the narrow alleyways of Indian cities, and

trademarked tricycle and pushcarts.

Marketing:

Specific marketing programmers are determined locally. In early

2003, Coca-Cola India collected Advertiser of the year and Campaign of the

year awards for the 'Thanda mat lab Coca-Cola' all media campaign.

Innovation has been the hallmark of other marketing campaigns, with the

company racking up "firsts" in the introduction of canned and PET soft

drinks, vending machines and back pack dispensers for crowds of cricket

supporters.

Quality:

The company considers consistent high quality of the products as

one of the primary business assets. In India, as in each country they

produce beverages, the Coca-Cola system adheres not only on national laws

of food processing and labeling but also to its own strict standards of

exceptional quality.

19


20/55

2.3 Coca-Cola and the Community:

At Coca-Cola, they have a long-standing belief that everyone who

touches their business should be benefit. Coca-Cola India provides

extensive support for community programmers across the country with the

focus on education, health and rain water harvesting, all key priorities of the

Indian Government hitch has which has recognized the Company's efforts

by several awards.

Education: Coca-Cola India is supporting community -- based primary

education projects set up to provide educational opportunities to

marginalized children in slums and villages. To date, the project has

benefited 50 schools, thousands of students, over 500,000 villagers and over

10000 slum dwellers, as well as several villages near Coca-Cola bottling

plants.

Environment: Coca-Cola India is supporting community-based rainwater

harvesting projects in rural and urban areas to help restore water levels and

promote community education in ways to conserve natural resources.

These initiatives have benefited over 10000 Delhi residents, as well as local

community members in areas surrounding Coca-Cola plants and elsewhere.

Healthcare: Coca-Cola India is partnering with NGO's as well as St.

John's Ambulance Bridge (Red Cross) to provide free medical facilities and

information to poor people who cannot afford to visit hospital facilities.These efforts are helping tens of thousands of underprivileged people in

seven states in India as well as several villages near Coca-Cola bottling

plants. The company has also supported a range of other national initiatives

such as, a major polio eradication drive and brought relief programmed

in addition to support towards National Cricket Championships for the

blind, and National Athletic meetings for the physically challenged.

20


21/55

2.4 Products and Brands

Leading Indian brands, Thums Up, Maaza, Limca, Citra and Gold

Spot join the company's international family of brands, including Coca-

Cola, Diet Coke, Sprite and Fanta, plus the Schweppes product range.

Kinley, water brand was launched in 2000 and 2001 energy drink Shock and

first powered concentrate Sun fill hit the market.

Annual per capita consumption in India is nine 8-ounces per servings.

Various Brands in Indian market Coca-Cola

In India, Coca-Cola was the leading soft drink till 1977 when govt.

policies necessitated its departure. Coca-Cola made its return to the country

in 1993 and made significant investments to ensure that the beverage is

available to more and more people, even in the remote and inaccessible

parts of the nation.. In 2002, Coca-Cola launched the campaign " Thanda Mat lab

Coca-Cola" which sky rocketed the brand to make it India's favorite soft-

drink brand. In 2003, Coke was available for just Rs. 5 across the country

and this pricing initiative together with improved distribution ensured that

all brands in the portfolio grew leaps and bounds.

21


22/55

Sprite

In India, Sprite was launched in year 1999 and today it has grown to

be one of the fastest growing soft drinks, leading the Clear lime category.

Today Sprite is perceived as a youth icon. Why? With a strong appeal to the

youth, Sprite has stood for a straightforward and honest attitude. Its clear

crisp refreshing taste encourages the today's youth to trust their instincts,

influences them to be true to who they are and to obey their thirst.

Sprite advertising for has always been memorable with very high

recall value, especially amongst the youth. With popular TV commercials

like Lisa Ray, Aish, Market Research and it's latest take on its competitor -

'I don't want to Do' Sprite has stood in the minds of youth as "Sprite

Bujhaye Only Pyaas, Baki All Bakwaas", which has became recognizable

around the country. Sprite is available around the country in 200ml, 300ml,

500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr and 330ml cans.

22


23/55

Limca

The drink that can cast a tangy refreshing spell on anyone, anywhere.

Born in 1971, Limca has been the original thirst choice, of millions of

consumers for over 3 decades.

The brand has been displaying healthy volume growths year on year

and Limca continues to be the leading flavor soft drink in the country.

The success formula? The sharp fizz and lemony bite combined with

the single minded positioning of the brand as the ultimate refresher has

continuously strengthened the brand franchise. Limca energizes refreshes

and transforms. Dive into the zingy refreshment of Limca and walk away a

new person.

23


24/55

Fanta

Internationally, Fanta- The 'orange' drink of The Coca-Cola

Company is seen as one of the favorite drinks since 1940's. Fanta entered

the Indian market in the year 1993. Over the years Fanta has occupied a

strong market place and is identified as "The Perceived as a fun youth

brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles

that not just uplifts feelings but also helps free spirit thus encouraging oneto indulge in the moment. Fanta advertising over the time has had the

highest association with fun and friends that has reflected through past TV

commercials like Masti ka Apna Taste, Bajao Masti Ki Ghanti to the recent

commercials Dil Khol Ke at the Airport. Rank Mockeries, as the brand

ambassador for Fanta is the perfect embodiment of brand character is fun,

vivacious and energetic. Fanta is available around the country in 200ml,

300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25 lit and 330ml cans.

24


25/55

Thums-

up

Strong Cola Taste, Exciting Personality

Thums Up is a leading carbonated soft drink and most trusted brand

in India. Originally introduced in 1977, Thums Up was acquired by The

Coca-Cola Company in 1993.

Thums Up is known for its strong, fizzy taste and its confident,

mature and uniquely masculine attitude. This brand clearly seeks to separate

the men

25


26/55

Maaza

In 1993, Maaza was acquired by Coca-Cola India. Maaza currently

dominates the fruit drink category.

Over the years, brand Maaza has become synonymous with Mango.

This has been the result of such successful campaigns like "Taaza Mango,

Maaza Mango" and "Bottle mein Aam, Maaza hain Naam". Consumers

regard Maaza as wholesome, natural, fun drink, which delivers the real

experience of fruit.

The current advertising of Maaza positions it as an enabler of fun

friendship moments between moms and kids as moms trust the brand andthe kids love its taste. The campaign builds on the existing equity of the

brand and delivers a relevant emotional benefit to the moms rightly

captured in the tagline "Yaari Dosti Taaza Maaza"

It is available in SKUs of 200ml RGB, 250ml RGB, 125ml Tetrapak

and 200ml Tetrapack.

26


27/55

Kinley

Water, a thirst quencher that refreshes, a life giving force that washes

all the toxins away. A ritual purifier that cleanses, purifies, transforms.

Water, the most basic need of life, the very sustenance of life, a celebration

of life itself.

The importance of water can never be understated. Particularly in a

nation such as India where water governs the lives of the millions, be it as

part of everyday rituals or as the monsoon which gives life to the sub-

continent.

Kinley water understands the importance and value of this life giving

force. Kinley water thus promises water that is as pure as it is meant to be.Water you can trust to be truly safe and pure.

Kinley water comes with the assurance of safety from the Coca-Cola

Company. That is why we introduced Kinley with reverse-osmosis along

with the latest technology to ensure the purity of our product. That's why we

go through rigorous testing procedures at each and every location where

Kinley is produced Kinley water - Boond Boond Mein Vishvaas!

27


28/55

ORGATIONAL CHART

GENERAL

MANAGER

AGM

FINANCE PROD. MKT.SALES

H.RMANAGER

MANAGER

MANAGER

MANAGER

ASMASM

SALES

SALESEXECUTIV

EEXECUTIVE

ORGATIONAL DETAILHindustan coca-cola ltd. Had their manufacturing plant s in more

than 200 countries , among the India they have one manufacturing plant in

the paradise of earth that is Jammu and Kashmir. The plant is established in

the year 1994 with the authority of Hindustan coca-cola ltd. The plant is

manufacturing all the products of coca cola including all products of RGB

with out one product that is MAAZA because for that particular brand their

28


29/55

should be separate plant, for the distribution of that particular product

company purchases that product from DELHI.

The plant is situated in the heart of the industrial area of Jammu that

is in satwari having the following departments;

1) Production department

2) Finance department

3) Human resource department.

4) Marketing and sales department.

5) Shipping department.

The plant has two production machines, which have the capacity of

producing 600 bottles/min. the machine can produce one brand at a time

with four inspections till the final product come out of the machine.

The company have round about 150 employees including the

General manger mangers of different departments and the other employees.

PROMOTIONAL SCHEME.

As we know the company is using different promotional schemes to

increase their sales, the coca cola company have introduced the following

schemes during the training period.

1) Two 200ml RGB bottles with every one crate of 300 ml RGB.

2) One 1500 ml bottle with every crate of pet.

3) One t-shirt free with every two crate of 300ml RGB.

29


30/55

SALES FIGURE DURING

TRAINING

Following are the sales figures during the training period of Hindustan

coca cola ltd. Of the following distributor.

1) Mahajan Ent. And cold drinks Gandinagar Jammu (A).

2) Basu cold drinks malik market (B)

30


31/55

S NO DISTRIBRUTOR BRAND RGB PET

A 500ML 1500ML200 ML 250ML 300ML

1 A LIMCA 3230 1420 180 120

2 A THUMPUP 3000 1500 160 102

3 A FANTA 1600 500 90 824 A SPRITE 700 650 65 40

5 A MAAZA 1350 80

6 A COKE 500 250 40 30

CANANDA

7 A DRY 200 100 30 10

9230 1350 4220 565 464

TOTAL 15000 1029

S NO DIDTRIBRUTOR BRAND RGB PET200 ML 250ML

B 300ML 500ML 1500ML

1 B LIMCA 4000 2200 200 140

2 B THUMPUP 4300 1700 183 110

3 B FANTA 1700 1100 110 100

4 B SPRITE 1000 800 95 65

5 B MAAZA 1800 110

6 B COKE 700 300 75 65

CANANDA7 B DRY 300 100 65 30

12000 1800 6200 728 620

TOTAL 20000 1348

31


32/55

CHAPTER 3

3.1 INTRODUCTION TO TOPIC

Despite the rising intensity of brand war, there is a lot of ignorance

on what merchandising is and how it helps in brand building. though no

research has been has been done on the impact of merchandising on

purchase decision, it is believed that at least two third of buying decision

are made at the point of sale. In apparel and dress accessories, there is much

higher awareness of merchandising and its utility. Merchandising is a ability

to visually demonstrate and display a product, show its features and

properties and bring out some of its esoteric. Going by recent trends

merchandising is gaining in importance each day. Coke, Bausch and laumb

and HLL have used it fairly successfully. The heightened awareness of role

of merchandising in recent times is because of the entry of foreign brands

into the country. However, in India most retailers, do not own there

merchandising. This will probably happen sooner than later and would be

fallowing in the name of big overseas names such as Walmart and Marks

and Spencer, which do there merchandising.

Sales, or the activity of selling, forms an integral part of commercial

activity. Mastering sales is considered by many as some sort of persuading

"art". On the contrary, the methodological approach of selling refers to it as

a systematic process of repetitive and measurable milestones, by which a

salesperson relate his offering enabling the buyer to visualize how toachieve his goal in an economic way.

Selling is a practical implementation of marketing; it often forms a

separate grouping in a corporate structure, employing separate specialist

operatives known as salesmen (singular: salesman or salesperson).

32


33/55

The successful questioning to understand a customers goal, the

further creation of a valuable solution by communicating the necessary

information that encourages a buyer to achieve his goal at an economic cost

is the responsibility of the sales person or the sales engine (e.g. internet,

vending machine etc).

The primary function of professional sales is to generate and close leads,

educate prospects, fill needs and satisfy wants of consumers appropriately,

and therefore turn prospective customers into actual ones.

From a marketing point of view, selling is one of the methods of promotion

used by marketers. Other promotional techniques include advertising, sales

promotion, publicity, and public relations.

Various sales strategies exist, such as tit-for-tat which is best if ongoing

dealings and interactions are expected. This insight is behind so-called

consultative sales process which are used by Saturn to sell cars, as well as

for some direct Business-to-Business sales.

Several types of sales exist including direct, consultative, and complex

sales. Complex sales varies from other types in that the customer plays a

more pro-active role, often requiring proposal response to their Request for

Proposal

Modes of selling include:

1. Direct Sales - involving face-to-face contact

a. Retail or consumer

b. door-to-door or travelling salesman

c. business-to-business

2. Indirect - human-mediated but with indirect contact

a. Telemarketing or telesales

b. mail-order

3. Electronic web B2B, B2C

a. EDI

4. Agency-based

a. Consignment

33


34/55

b. Multi-level marketing

5. Sales agents (real estate, manufacturing

A classical distribution scenario A wholesaler procures an order,

acquires goods and stores them in a warehouse, supplies order-based stock

for a calculated amount of profits. The wholesaler played a number of roles

traditionally - he was an intermediary who took care of logistics and moved

stock around, a consolidated sales agent for suppliers, a local customer

service point and a demand buffer for manufacturers. Yes, multitasking

existed even then, but with limited scope. These limitations were of the

physical kind - all these roles could be played out only within a certain

geographical terrain. The distribution network today, the role of the

distributor as an intermediary has morphed into that of a 'disintermediary'.

A distributor plays a virtual role, an almost invisible part of a smooth supply

chain. Third-party logistics providers help ship goods from one part of the

globe to another in a day, while a more customer-centric distribution chain

enables direct ordering and tracking of orders over the Internet. Remote

means of customer service diminishes the importance of a local customer.

Today's supply chains have become extended value chains where distributor

operations have shifted from the buy, hold and sell paradigm to the sell,

source and ship paradigm. To make these necessary shifts the distributor

needs to have more information about all customers, learn to manage

inventory from other distributors and have a workflow-based information

system.

34


35/55

3.2 Customer Preference and retailing .

The end user of a product is the key person who decides the fate

of a product or service. The customer decides how much the product is

worth in terms of its costs, mobility, knowledge, income and service

provided. Customers perceptions and expectations of a product are vital

and need to be met by the producers. People are drawn to a particular brand

because they want to be a part of something larger than themselves or to

precede and outlive them. Customers need to identify themselves with the

product in order to be brand loyal.

Retailing: -

Retailing includes all the activities involved in selling goods or

services directly to final consumers for personal, non-business use. A

retailer or retail store is any business enterprise whose sales volume comes

primarily from retailing.

Any organization selling to final consumers-whether it is a

manufacturer, wholesaler or retailer is doing retailing. It does not matter

how the goods or services are sold or where they are sold.

Types of Retailers : -

Consumers today can shop for goods & services in a wide variety of

retail organization. There are store retailers, non-store retailers & retail

organization. Perhaps the best-known type of retailer is the department

store.

Retail stores types pass through stages of growth & decline that can

be described as the retail lifecycle. A type emerges, enjoys a period of

35


36/55

accelerated growth, and reaches maturity & then declines. Older retail

forms took many years to reach maturity; newer retail forms reach maturity

much more quickly.

Types of Middle men or intermediaries :-

Marketing intermediaries of middle men are those persons or

institution who are the relationship between the manufacturer and the

ultimate consumer of their product. Now a days number of agencies are

performing a distribution function in every country. These agencies are

called by various names, which generally follow the service they perform.

These are as follows.

1. Agent: -

These are the intermediaries who perform various marketing

function without having the titles of the goods. This implies that these

agencies help in transferring the goods from the hand of the producer to the

consumer without acquiring their ownership. He commonly receives his

remuneration in the form of commission.

2. Broker: -

An agent who does not have direct physical control of the good in

which he deals represent either buyers or seller is negotiating purchase or

sales. The brokers power as to price and term of sale are usually limited by

principal.

3. Commission Merchant: -

An agent is a person who usually exercises physical control over a

negotiate the sale of the goods that he handles. It generally arranges

delivery, extents, and necessary credits, deducts fees and remits the balance

to the principal.

36


37/55

4. Dealers : -

A firm that buys and resale merchandise of either retail or

wholesaler, it is also called as distributor.

5. Whole Seller: -

This term is widely used as synonym of distributor or jobber. Those

who render all the services normally expected in the wholesale service the

known as whole seller.

6. Retailer :-

A business unit that buys takes title to resale merchandise. The

distinctive feature of this middleman lie in the fact he takes the title of the

goods he handles. Wholeseller and retailer are the chief types of these

merchant.

3.3 Distribution channel:-

Zero level channels

Manufacturer ------- Consumer

A zero level channel often called directing channel consist of a

manufacturer selling direct to a consumer

One level channelManufacturer ---- Retailer ------ Consumer

This channel contents one selling intermediary i.e. retailer. It means

the manufacturer sales the goods to retailer & retailer sales to consumer

37


38/55

Two level channels

Company -------- Distributor ------- Retailer ------- Consumer

This channel contains to intermediary i.e. the product Flows from

Company to distributor, distributor to retailer, Retailer to consumer & lastly

from prospective.

Three level channels

Company --------Wholesaler ----- Jobber ------- Retailer ------- Consumer

This channel contents three intermediaries i.e. the product flows

from company to wholesaler to jobber to retailer & finally it riches toconsumer.

Various functions of distribution channel

The middle or the intermediaries provide the following important services.

Contractual function

They provide an important link between the producer & the ultimate

consumer of goods & thus match the demand with production. They are

established contact with dialer & distribute the goods at right time.

Distribution of goods their main service to distribution of goods or

products, among the customer they provide transports.

Help In Pricing

They assists in the pricing of the product also according to some

experts to some experts the middleman in the distribution process increase

the cost of goods. But it is not true in such case. If judicious pricing policy

followed the goods can be sold to the customer at reasonable price.

38


39/55

Co-operative of demand & supply it also important contribution as elder on

has put it The foal of marketing is the matching of segments of supply &

demand intermediaries performs this function in an effective manner.

Intensity Of Distribution

The problem of distribution intensity is also factor in distribution

decision. The manufacturer has to decide how many middlemen would

employee on each level of agency mining of no. of intermediaries is

influenced by the degree of market exposure experienced by the company.

There is three general of distribution intensity.

1. Intensive distribution

2. Exclusive distribution

3. Selective distribution

1. Intensive distribution

Producer of conveyance goods & common raw material generally

seek intensive distribution that is the stock of their products in as many

outlets as possible. The dominant factor in the marketing of these goods in

there place utility. The producer of plywood e.g., tries to distribute their

product with every possible retail outlets.

2. Exclusive distribution:

Some producers deliberately adopt the policy of exclusive

distribution. By this limit the number of intermediaries in handling their

products. The extreme form of this is to appoint exclusive or sole selling

agent from a particular area. Such middleman is generally known as dealer.

The main purpose of following this is to maintain the goodwill of

products in the market.

39


40/55

3. Selective Distribution:

Intensive distribution & exclusive distribution both are the two

extreme. Between extreme policy of intensive distribution of stand range of

intermediate arrangement that have been called selective distribution

involves the use of more than one but less than all of the intermediaries who

are willing to carry a particular products. It is used both by established

companies with good reputation, bad by new companies seeking to get new

distribution by promising them selective distribution

40


41/55

Chapter

4

ANALYSIS AND INTERPRETATION

The product availability survey contains the study of all products of

Coca-Cola. The study of 100 outlets was taken as sample from Jammu City.

The graphs show both products available quantity wise. The whole data is

converted into percentages. The products are available in 200ml, 300ml,

500ml and 1200ml quantity

PRODUCTS QUANTITY CATEGORY

200ML A

300ML B

600ML C

1200ML D

The above diagram shows the quantity wise distribution of the products.

The data is comparatively arranged in the graphs. The standard quantity of

each product is shown.

.

41


42/55

Table and Graph:

4.1 Table showing availability of products of coke and Pepsi in

market

Sr. No. Production No. of Respondents % of Age

1 COKE 60 60%

2 PEPSI 40 40%

Interpretation: -

From the above table it is clear that 60% retailers are having the coca

cola products and rest 40% is covered by Pepsi.

42


43/55

4.2 Table showing awareness of dealer about the schemes

Sr. No. Opinion No. of Respondents % of Age

1 Yes 80 80

2 No 20 20

Interpretation: -

From the above table it is clear that 80% retailer get the scheme provided by

the company through the dealer and 20% retailer did not get the scheme. A

unfortunately the salesman do not provide full information about scheme to

the retailer. As a result some retailer do not get what they expect to get from

company in relation to schemes.

4.3 Bar diagram showing availability of racks and displays.

43


44/55

Availibity of Racks &

Displys

50

40

30

Brand20

10

0

Coca Cola Pepsi Both

Interpretation: -

From the above bar diagram it is clear that 90% retailers are getting

their delivery daily and 5% are getting their delivery sometimes and weakly

bases.

44


45/55

4.4 Pie chart showing consumption of different brands of

coca Cola.

Consumption of Different Brands of

Coca Cola

9% 5% 2%31%

9%

14%

30%

Limca Thumps Up Fanta SpriteMaaza Coke CanadianDry

Interpretation: -

From the above pie chart it is clear that 45% retailers are having the

displays and racks of both the companies and 35% retailers are having the

coke displays and rest of 20% are having the Pepsi displays.

45


46/55

4.5 Table showing response for the re-launched product

(crush).

Sr. No. Opinion No. of Respondents % of Age

1 Yes 55 55

2 No 45 45

Interpretation: -

The above table clearly shows that the re-launched product crush has

got the average response that is 55% from the market and 45% respondent

did not yet like it.

4.6 Table showing availability of VISI COOLER

46


47/55

Sr. No. Brand No. of Respondents % of Age

1 Coca cola 45 45

2 Pepsi 20 20

3 Both 15 15

4 Own 20 20

Interpretation: -

From the above table it is clear that 45% retailers are having the visi

cooler of coca cola brand, 20% are covered by Pepsi, 20% are having their

own visi cooler for cooling purpose and rest of 15% are having the visi

cooler of both companies.

4.7 Table showing the source of awareness for various

brands of coca cola.

47


48/55

Sr. No. Sources No. of Respondents % of Age

1 TV 62 62

2 Newspaper 10 10

3 Internet 08 08

4 Wall Painting 05 05

5 Radio 05 056 Others 10 10

Interpretation: -

From the above table it is clear that 62% respondent come to know

about the coca cola products with the help of television and 10% come to

know about the brands through the news paper and the other medias.

4.8 Table showing the retailer getting the timely delivery of

the production.

Sr. No. Delivery No. of Respondents % of Age

1 Daily 90 90

2 Alternative 05 05

48


49/55

3 Weekly 05 05

Interpretation: -

From the above table it is clear that 90% retailers are getting

their delivery daily and 5% are getting their delivery alternative and

weekly basis.

49


50/55

Chapter

5.

Observations and Findings.

1. It is the world leading Beverage Company and very popular product

line

2. Coke dominates the market in carbonated soft drinks (CSD) in

200ml, 300ml, 600ml and pet.

3. Some of the retailers are not aware about the schemes which the

company provides.

4. It is found that the company is distributing their products daily to

most of the retailers.

5. It is found that company is not providing the racks displays and visi

coolers properly..

6. It is found that company is not doing the proper job in painting of

walls, promos.

7. During the training period it is found that LIMCA and THUMS-UP

dominate the market.

8. The availability of the Maaza is less in the market.

9. The crush brand should need to push up with some scheme in the

market.

10. As crush was re-launched in market its response was average.

50


51/55

CHAPTER

6.SUGGESTIONS

As we know that the customer always wants value for their money, so if

we are able to give them some extra benefits they will definitely

purchase our product. So the company can increase their sales with the

help of good schemes.

Before sending the salesman into the job the Human Resource dept.

should train their salesman properly with the help of professionals so

that they will be able to communicate & convince properly during sell &

which will directly give increase to the sales.

As we know the soft drink business is seasonal, so the demand of that

product during summer is high. Therefore, the company should arrange

more vehicle to have a good distribution throughout the whole market

which can be well stocked with the retailer..

As we know Merchandising is very important to attract the customer so

the company should distribute their racks displays, visi cooler in good

numbers so that the products are properly show cased.

In addition to the advertisement on T.V. the company should use more

promos and wall painting to increase sales in rural areas. This particular

product is picking in the rural areas, it no longer remains as a urbandrinks.

The Thumps up and Limca has the maximum market share so the

company should use some promotional schemes to increase the sales

of the other brands of Coca-Cola. Other way of making this drink

popular to decrease the quantity because the intake capacity of the

51


52/55

person is limited if the quantity is reduced he can consume more and

with varied variety.

As we know the taste of Maaza is fruity in nature so the demand of that

product is high with the target customer of children & old people so the

company should purchase more MAAZA from Delhi to avoid

unavailability or put up the plant in Jammu.

The Crush brand needs push up with attractive scheme in the market so

the company should give more information about that product to the

customer.

52


53/55

ANNEXUR

EQUESTIONNAIRE

RETAILER

1 Out-Let Name _______________________________

2 Owner Name _______________________________

3 Phone No. _______________________________

4 Area _______________________________

5 Distributors name

6 Which company product do you keep?

(i)Coca-cola co. (ii)Pepsi co. (iii)Both

7.do you know the scheme provided by the company.

(1) yes (2) no

8.How is the response of the re-launched product CRUSH of

COCA COLA.

(1)Poor (2)Average (3)good (4)Exceptional

9 Does your outlet have a rack display and visi cooler from

Coca ola?

(1) Yes (2) No

10.how is the delivery of COCA COLA.

(1)Poor (2)Average (3)Good (4)Exceptional

11 Are you satisfied with the facilities and schemes provided to you by the

company? If not please specify.

53


54/55

QUESTIONNAIRE

CONSUMER

NAME

SEX

AGE

PHONE NO

(1) Which brand you prefer most.

(1)COCA COLA (2)PEPSI

(2) IF coke why

(3) Which soft drink in coca cola you prefer.

(4) Do you get our product from every shop.

(1) Yes (2) No

(5) How you come to know about COCA COLA.

54


55/55

(1)TV (2)Newspaper (3)Internet (4)Others

(6) Do you know the Schemes of coca cola.

(1) Yes (2) No

(7) Any suggestion.

55

Marketing of Soft Drink

Documents

Transcript of Marketing of Soft Drink