market penetration of coca cola company

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“Market Penetration Of Coca-Cola Brand”

With reference to

HINDUSTAN COCA-COLA BEVERAGES PVT.LTD

VISHAKAPATNAM

In the partial fulfillment of the requirements for the award of

MASTER OF BUSINESS ADMINISTRATION

UNDER THE ESTEEMED GUIDANCE OF

Professor P. Sheela

SUBMITTED BY: K. Hima Divya

1225112313

MBA-C (2012-14)

GITAM INSTITUE OF MANAGEMENT

(A NAAC accredited 'A' grade institution)

GITAM UNIVERSITY

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DECLARATION

I hereby declare that the project entitled “STUDY ON MARKET PENETRATION OF COCA-COLA BRAND IN COCA-COLA BEVARAGES LTD IN VISAKHAPATNAM CITY”, submitted to GITAM University, VISAKHAPATNAM, in partial fulfillment of the requirement for the award of degree of MBA is record of original work done by me under the guidance of Professor P.SHEELA, GITAM INSTITUTE OF MANAGEMENT, GITAM University,I confirm this has not been published or submitted elsewhere for the award of any degree in part or in full.

K HIMA DIVYA (1225112313)

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CERTIFICATE

This is to certify that the Project Report titled “A STUDY ON MARKET PENETRATION OF

COCA-COLA BRAND IN HINDUSTAN COCA-COLA BEVARAGES LTD” is an original

work carried out by HIMA DIVYA K (Enrollment No 1225112313), in partial fulfillment for the award of the degree of Masters of Business Administration by GITAM Institute of Management, GITAM University, Visakhapatnam, during the Academic year 2012-14. This report has not been submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.

Signature of the Guide

Name and Address of the Guide: Name of Faculty: Prof. P. Sheela GITAM Institute of Management Visakhapatnam

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ACKNOWLEDGEMENT

It is my pleasure to acknowledge and express my gratitude to all those who helped me throughout in the successful completion of this project.

I wish to express my gratitude to Prof. K Siva Rama Krishna, Dean & Principal, GITAM Institute of Management, GITAM University, Visakhapatnam, for giving me this valuable opportunity to experience the work culture in an organization.

I wish to express my gratitude to Prof. P. Sheela, Vice-Principal, GITAM Institute of Management, GITAM University, Visakhapatnam, for her support and cooperation.

I wish to express my gratitude to Dr. U.V. AdinarayanaRao, Program Co-ordinator, GITAM Institute of Management, GITAM University, and Visakhapatnam, for providing opportunities to gain experience in the field.

I am grateful to Prof P. Sheela, GITAM Institute of Management, GITAM University, Visakhapatnam for her continuous guidance to accomplish this project work successfully.

I am very thankful to Mr. C. Ramalingeswara Rao – ASM Marketing department, V. Usha – ESM Marketing department HINDUSTAN COCA COLA BEVRAGES LTD for extending their support and proving related information to the project

HIMA DIVYA K (Roll No: 1225112313)

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TABLE OF CONTENTS:

Chapter No.

Content

Page no.

CHAPTER-1 INTRODUCTION 8

1.1 Market Penetration 9

1.2 Need for the Study 12

1.3 Objectives of the Study 12

1.4 Scope of the study 13

1.5 Limitation of the Study 13

1.6 Research Methodology 14

CHAPTER-2 INDUSTRY AND ORGANISATION PROFILE 15

2.1 Beverage Industry profile 16

2.2 History of soft drinks 19

2.3 Government Policies 21 2.4 Organizational profile Mission Vision  Coca-Cola system  Products  Objectives  History of Coca-Cola  SWOT Analysis  Company Background  Future Focus Achievements 22 22 22 23 23 23 23 25 26 27 27

CHAPTER -3 THEORITICAL FRAME WORK 28

3.1 ANSOFF growth Matrix 31

3.2 Consumer Tastes and Preferences 32 3.3 Consumption patterns and potential of market 33

3.4 Pricing Strategies 33

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3.6 Promotion 36

CHAPTER-4 ANALYSIS 38

Analysis and interpretation 39

CHAPTER-5 FINDINGS & RECOMMENDATIONS 59

5.1 Findings 60

5.2 Recommendations 61

5.3 Conclusion 61

Annexure 64

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LIST OF TABLES:

Table No.

Title

Page No.

4.1 Type of the outlet 39

4.2 Location of the Outlet 40

4.3 Company having the highest sale of its products 41

4.4 Product preferred by customers 42

4.5 Demand for Coke products 43

4.6 Frequency of order placing 44

4.7 Effect of Pricing 45

4.8 Preference by different age groups 46

4.9 Quantity of coke products having highest sales 47

4.10 Highest sold quantity in summer 48

4.11 Weekly average sale of glass bottles 49

4.12 Weekly average sale of PET bottles 50

4.13 Rating given to behaviour of salesmen during order taking and delivery

51

4.14 Favourable rating in terms of service 52

4.15 Problems faced with Coca-Cola 53

4.16 Type of problem mostly faced 54

4.17 Reasons for customer preference for Coke 55

4.18 Sales promotion 56

4.19 Kind of promotional activity followed 57

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LIST OF FIGURES:

Figure No.

Title

Page No.

2.0 Beverage industry in India 20

3.1 ANSOFF Growth Matrix 32

4.1 Type of the outlet 39

4.2 Location of the Outlet 40

4.3 Company having the highest sale of its products 41

4.4 Product preferred by customers 42

4.5 Demand for Coke products 43

4.6 Frequency of order placing 44

4.7 Effect of Pricing 45

4.8 Preference by different age groups 46

4.9 Quantity of coke products having highest sales 47

4.10 Highest sold quantity in summer 48

4.11 Weekly average sale of glass bottles 49

4.12 Weekly average sale of PET bottles 50

4.13 Rating given to behaviour of salesmen during order taking and delivery

51

4.14 Favourable rating in terms of service 52

4.15 Problems faced with Coca-Cola 53

4.16 Type of problem mostly faced 54

4.17 Reasons for customer preference for Coke 55

4.18 Sales promotion 56

4.19 Kind of promotional activity followed 57

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CHAPTER 1

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[10] 1.1 INTRODUCTION

The Coca-Cola Company is the world’s largest beverage company. Along with Coca-Cola, recognized as the world’s most-valuable brand, the Company markets four of the world’s top five soft drink brands, including Thumps Up,Diet Coke, Fanta and Sprite and a wide range of other beverages, including water, juices and juice drinks, tea, coffee and sports drinks. Through one of the world’s largest beverage distribution system, consumers in more than 200 countries enjoy The Coca-Cola Company’s beverages at a rate exceeding 1.6 billion servings each day. The title of my project is “Market Penetration of the brand Coca-Cola” which measures the market penetration of the Coca Cola products.

Marketing and sales differ greatly, but have the same goal. Selling is the final stage in Marketing, which also includes Pricing, Promotion, Positioning and Product (the 4Ps). Achieving this goal may involve the sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations, creating new sales channels, or creating new products (new product development), among other things. Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling the product or service. It is a critical business function for attracting customers.

Market penetration is the percentage of a target market that consumes a product or service. Market penetration can also be a measure of one company's sales as a percentage of all sales for a product.

A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service. The amount of sales or adoption can be an individual company's sale or industry while the theoretical market can be the total population or an estimate of total potential consumers for the product.

For example, if there are 300 million people in a country and 65 million of those people have cell phones then the market penetration of cell phones would be approximately 22%. This would mean in theory there are still 235 million more potential customers for cell phones, which may be a good sign of growth for cell phone makers. In general, the older the offering or industry, the greater the market penetration.

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Often, managers must decide whether to seek sales growth by acquiring existing category users from their competitors or by expanding the total population of category users, attracting new customers to the market. Penetration metrics help indicate which of these strategies would be most appropriate and help managers to monitor their success. These equations might also be calculated for usage instead of purchase.

Market penetration is a growth strategy used to maintain or increase the market share of current products and to achieve secure dominance of growth markets.

Determining what constitutes the consumer market is key to the process of properly calculating market penetration. In some instances, the market is defined as being consumers who actually use a given type of product or service. Other situations call for including not only current consumers, but potential consumers as well. The former is more helpful when assessing the degree of market penetration of a given product among active users today, while the latter is usually helpful when seeking to identify new markets for those same products, based on various demographics.

If the idea is to approach existing consumers within the market and entice them to purchase a new and improved version of something they already use, calculating market penetration may focus on identifying how many sales the product currently generates.

Market penetration also includes the study of Pricing strategies followed by the company, promotional activities followed and about the various aspects of the product. These are studied because the amounts of sales of the product are greatly affected by the different promotions and the pricing of the product which in turn decide the market share of the product.

Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

Pricing strategies for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more profit with a better pricing

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strategy. When costs are already at their lowest and sales are hard to find, adopting a better pricing strategy is a key option to stay viable.

Penetration pricing is the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price.

Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. Coca cola company follows market penetration pricing strategy in order to increase their sales and their market share. The Coca-Cola Company has been very consistent with their pricing strategy over the many years they have been in business. Because they have a strong competitor, they have to keep their prices in line to compete. The ultimate goal of the company is to maximize shareholder value. The will often reduce the price of their products when entering new markets. They do this to raise brand awareness and face the competition. Once they are established, they move the prices back up to position themselves as a premium product.

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[13] 1.2 NEED OF THE STUDY

 This study is done because the annual revenue of Coke is less than that of Pepsi even though it has a greater market share and to know the reasons behind it.

 This study is carried out to find out the various strategies, when adopted, can help the company to gain market dominance.

 This study is done to identify different strategies and extent of market penetration of Coca cola products in order to gain market dominance from its competitors like Pepsi.

 This study provides an insight to the company that what kind of strategy can be considered in order to increase the sales and satisfaction of the consumer.

1.3 OBJECTIVES OF THE STUDY

 To find out the present sales of various coca cola products in different retail outlets.

 To find out the factors that influence the consumer’s consumption of coke products.

 To find out whether any problems are faced by the retailers which are in turn affecting the sales.

 To find out the demand for coke products.

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[14] 1.4 SCOPE OF THE STUDY

 This study covers the history and evolution of the beverages industry and mainly concentrates on the Soft Drink industry profile.

 The study then briefly describes the profile of the company “Coca-Cola” which includes the history and evolution of Coca Cola.

 It covers the different pricing strategies, different promotional activities ,STP approach and other theoretically related concepts which helps the company to have maximum market penetration compared to its competitors.

 The study finally includes the analysis and interpretation of the data collected on sale of Coke products in various retail outlets and the extent to which the brand has penetrated in the market and the findings from the data.

1.5 LIMITATIONS OF THE STUDY

 This study is limited only to certain areas and all the retailers are not covered which in turn does not cover all the potential customers.

 The data collected from the retailers may be biased.

 Non-cooperative behavior of some retailers.

 The study did not include modern trade like hyper markets,multiplexes and malls in Visakhapatnam region.

 (This is product demand varies seasonally so study in different seasons yields different results.)

 The time period allotted for the study was only of 6 weeks, which may provide a deceptive picture in comparison of the study based on long run.

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[15] 1.6 METHODOLOGY OF THE STUDY

Data was collected from primary sources and secondary sources. PRIMARY DATA:

Primary data is the data that is generated by the researcher for the specific purpose of research situation at hand.

The primary data in this study is collected through Questionnaire and observation. SECONDARY DATA:

Secondary data is already published data collected for some purposes other than confronting the researcher at a given point of time.

The secondary data is collected from the internet, journals and text books. RESEARCH INSTRUMENTS:

 Structured Questionnaire: A printed questionnaire was given to the retailers and the responses were collected.

 Area of survey:MVP colony, Lawson’sBay,Pedawaltair,Madhurawada,Rushikonda SAMPLE SIZE:

100 retail outlets

SAMPLING TECHNIQUE: Simple random sampling SAMPLING FRAME:

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CHAPTER 2

INDUSTRY PROFILE AND

ORGANIZATIONAL

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[17] 2.1 BEVERAGES INDUSTRY

Definition of Beverage

A drink, or beverage, is a liquid specifically prepared for human consumption. In addition to basic needs, beverages form part of the culture of human society.

Types of Beverage Water

Despite the fact that most beverages, including juice, soft drinks, and carbonated drinks, have some form of water in them; water itself is often not classified as a beverage, and the word beverage has been recurrently defined as not referring to water.

Alcoholic Beverages

An alcoholic beverage is a drink containing ethanol, commonly known as alcohol, although in chemistry the definition of an alcohol includes many other compounds. Alcoholic beverages, such as wine, beer, and liquor have been part of human culture and development for 8,000 years. Non-alcohol Beverages

Non-alcoholic beverages are drinks that would normally contain alcohol, such as beer and wine but are made with less than 0.5 percent alcohol by volume. The category includes drinks that

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have undergone an alcohol removal process such as non-alcoholic beers and de-alcohol zed wines.

The non-alcoholic beverage industry plays an important role in the U.S. economy. Our industry has a direct economic impact of $141.22 billion, provides more than 233,000 jobs and helps to support hundreds of thousands more that depend, in part, on beverage sales for their livelihoods. The American Beverage Association (ABA) is the trade association that represents America's non-alcoholic beverage industry. Together, they bring to market hundreds of brands, flavors and packages, including regular and diet soft drinks, bottled water and water beverages, 100 percent juice and juice drinks, sports drinks, energy drinks and ready-to-drink teas.

The Alcoholic Beverage

It is unknown when the first alcoholic beverage was created. Evidence of intentionally fermented beverages exist in the form of beer jugs dated as early as the Neolithic period.

History of Coca Cola

Inventor John Pemberton's accountant Frank Robinson (who also had excellent penmanship) first scripted "Coca Cola" into the flowing letters which has become the famous logo of today. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.

Coffee Beverage

The modern day espresso machine was created by Italian Achilles Gaggia in 1946. Gaggia invented a high pressure espresso machine by using a spring powered lever system.

Milk Beverage

In 1884, Doctor Hervey Thatcher of Potsdam, New York invented the first glass milk bottle called Thatcher's Common Sense Milk Jar, which was sealed with a waxed paper disk.

BEVERAGE INDUSTRY IN INDIA

In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

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The beverage industry in India constitutes of around USD 230 million among the USD 65 billion food processing industry. The major sectors in beverage industry in India are tea and coffee which are not only sold heavily in the domestic market but are also exported to a range of leading overseas markets. Half of the tea and coffee products are available in unpacked or loose form. Among the hot beverages manufactured in India, tea is the most dominant beverage that is ruling both the domestic and international market even today. The supply of tea and coffee is insurmountable in the Indian beverage industry.

BEVERAGE COMPANIES IN INDIA

Fruit juices, pulp and concentrates, and sauces or ketchups are doing very well in the beverage market in India for the past few years. Various milk products, health beverages, beer, and country liquors have also been contributing largely in the rising demand of beverages in India. The leading beverage companies in India are also exporting various products especially tea and coffee to the international markets every year. Among all the leading beverage companies in India, Coca cola has accounted for a thriving growth since its inception. It occupies around 60 percent of the carbonated drink sector in the Indian beverage industry. Another predominant brand in beverages is Nestle India Limited which occupies 61.85 percent of the total Nestle S.A. Switzerland. The Nestle products are hugely exported to Russia apart from selling in the domestic market.

Coca cola, Pepsi, and Nestle are the leading beverage brands that have been ruling the Indian beverage market since past few decades. Among all the beverages, tea and coffee are manufactured as well as exported heavily in the international markets succumbing to the individual demands around the world.

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FIGURE 2: BEVERAGE INDUSTRY IN INDIA

2.2 HISTORY OF SOFT DRINKS

Soft drinks can trace their history back to the mineral water found in natural springs. Bathing in natural springs has long been considered a healthy thing to do; and mineral water was said to have curative powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind the bubbles in natural mineral water.

The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the Companied Lemonades of Paris were granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.

Joseph Priestley

In 1767, the first drinkable man-made glass of carbonated water was created by Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced in large amounts.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

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[21] John Mathews

In 1810, the first United States patent was issued for the "means of mass manufacture of imitation mineral waters" to Simons and Rundell of Charleston, South Carolina. However, carbonated beverages did not achieve great popularity in America until 1832, when John Mathews invented his apparatus for the making carbonated water. John Mathews then mass-manufactured his apparatus for sale to soda fountain owners.

PACKING INNOVATIONS:

By the mid-1800s, soft drinks sold in Canada were packaged in 8-ounce (227.2 ml) round-bottom bottles for about 25 cents a dozen, except ginger beer, which was sold in draught form from wooden kegs. Wired cork closures were used until about 1884 with Codd's Patented Globe Stoppers (25 types in all). The crown cap was introduced around 1905 and improved versions are still widely used, although they are gradually being replaced, especially on larger containers, with re-closable screw caps.

Other packaging innovations since the mid-1960s include canned carbonated beverages, nonreturnable glass bottles and containers made from rigid plastics.

Automatic Production of Glass Bottles

In 1899, the first patent was issued for a glass-blowing machine for the automatic production of glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-blowing machine was in operation. It was first operated by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few years, glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.

Home-Packs and Vending Machines

During the 1920s, the first "Home-Packs" were invented. "Home-Packs" are the familiar six-pack beverage carrying cartons made from cardboard. Automatic vending machines also began to appear in the 1920s. The soft drink had become an American mainstay. (Inventors: 2003). A Timeline of soft drink invention:

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 1819 The "soda fountain" patented by Samuel Fahnestock.

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

 1861 The term "pop" first coined.

 1874 The first ice-cream soda sold.

 1881 The first cola-flavored beverage introduced.

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

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

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

 1957 The first aluminum cans used.

 1959 The first diet cola sold.

 1970 Plastic bottles are used for soft drinks.

 1973 The PET (Polyethylene Terephthalate) bottle created.

2.3 GOVERNMENT POLICIES:

The value-added tax (VAT) rate of six per cent is applicable to fruit juice and fruit juice-based drinks. Despite the states coming to an understanding that VAT would be charged at the rate of six per cent on fruit juice and fruit juice-based drinks, some states have increased the VAT substantially.The soft drink industry is already reeling under margin pressure due to the high rate of taxes it is paying to the Central and state governments, but some states have also increased the

VAT on carbonated soft drinks.

This increase in taxes will, therefore, have to be passed on to the consumer leading to an increase in the price of the soft drinks, which will restrict purchase of soft drinks by the general mass.

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2.4 ORGANIZATIONAL PROFILE

Coca-Cola FEMSA is the largest publicly listed bottler of Coca-Cola trademark beverages in the world, calculated by sales volume in 2010. The Coca-Cola Company (NYSE: KO) is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The Coca-Cola Company operates in more than 200 countries and markets more than 500 brands and 3,500 beverage products. These products include sparkling and still beverages, such as waters, juices and juice drinks, teas, coffees, sports drinks and energy drinks.

2.4.1 MISSION

Our Road map starts with our mission, which is enduring. It declares our purpose as a Company and serves as the standard against which we weigh our actions and decisions.

 To refresh the world...

 To inspire moments of optimism and happiness...  To create value and make a difference.

2.4.2VISION

Our vision serves as the framework for our Road map and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

 People: Be a great place to work where people are inspired to be the best they can be

 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs

 Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value

 Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities

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 Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities

 Productivity: Be a highly effective, lean and fast-moving organization 2.4.3 Coca-Cola system

The Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company.

2.4.4 PRODUCTS

Coca-Cola, Diet Coke, ThumsUp, Sprite, Fanta, Limca, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh ,Burn, KinleyWater ,KinleySoda ,Schweppes, GEORGIA Gold 2.4.5OBJECTIVES

The main objectives for the Coca-Cola Company are to be globally known as a business that conducts business responsibility and ethically and to accelerate sustainable growth to operate in tomorrow's world which forms the foundation for companies in the decision making process. Strategies

The Coca-Cola company aims to be globally known, they do this by targeting different areas across the globe with different products, gaining their brand name and popularity. All the bottling partners work closely with their customers such as convenience stores, grocery stores, movie theaters and street vendors to create and use localized strategies developed in partnership with the company. They make decisions in realigning their business models to match the objectives of the company by using strategies and tactics in the analysis of their performance. 2.4.6 HISTORY OF COCA-COLA

1886-1892:Atlanta Beginnings

In 1886,in New York,like many people who change history, John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant,

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caramel-[25]

colored liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy. Here, the mixture was combined with carbonated water and sampled by customers who all agreed - this new drink was something special. So Jacobs' Pharmacy put it on sale for five cents (about 3p) a glass.

Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote it out in his distinctive script. To this day, Coca-Cola is written the same way. In the first year, Pemberton sold just nine glasses of Coca-Cola a day. A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup.

1893-1904:Beyond Atlanta

Asa Candler, a natural born salesman, transformed Coca-Cola from an invention into a business. He gave away coupons for complimentary first tastes of Coca-Cola, and outfitted distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola brand. Inevitably, the drink's popularity led to a demand for it to be enjoyed in new ways. In 1894, a Mississippi businessman named Joseph Biedenharn became the first to put Coca-Cola in bottles. 1905-1918:Safeguarding the brand

The company also decided to create a distinctive bottle shape to assure people they were actually getting a real Coca-Cola. The Root Glass Company began manufacturing the famous contour bottle. The contour bottle, which remains the signature shape of Coca-Cola today, was chosen for its attractive appearance, original design and the fact that, even in the dark, you could identify the genuine article.

1919-1940:The Woodruff legacy

Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff. In 1923, four years after his father Ernest purchased the company from Asa Candler, Woodruff became the company's president.

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[26] 1941-1959:The war and its legacy

In 1941, America entered World War II. Thousands of men and women were sent overseas. Woodruff ordered that 'every man in uniform gets a bottle of Coca-Cola for five cents, wherever he is, and whatever it costs the company'. During the war, many people enjoyed their first taste of the beverage, and when peace finally came, the foundations were laid for Coca-Cola to do business overseas.

1960-1981:A world of customers

After 70 years of success with one brand, Coca-Cola, the company decided to expand with new flavors. Fanta, originally developed in the 1940s, was introduced in the 1950s, while Sprite followed in 1961, with TAB in 1963 and Fresca in 1966.

1982-1989:Diet Coke and new Coke

The 1980s - the era of legwarmers, headbands and the fitness craze, and a time of much change and innovation at The Coca-Cola Company. In 1981, Roberto C Goizueta became chairman of the board of directors and CEO of The Coca-Cola Company.

1990-1999:New markets and brands

The 1990s were a time of continued growth for The Coca-Cola Company. The company's long association with sports was strengthened during this decade, with ongoing support of the Olympic Games, FIFA World Cup.The year 1993 saw the introduction of the popular Always Coca-Cola advertising campaign, and the world met the lovable Coca-Cola Polar Bearfor the first time.

2000-Now

The last decade marked an increase in Coca-Cola's efforts to create a sustainable framework for the future. In 2009, the company launched Live Positively - a public commitment to making a positive difference in the world by redesigning the way we work and live so that sustainability is part of everything we do.

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[27] 2.4.7 SWOT ANALYSIS

STRENGTHS

 Global reach with presence in over 200 countries

 Strong and efficient supply chain network, ensuring that all the products are available even in the most remote places.

 Strong financial condition

 CSR activities in the field of water conservation and recycling, education, health etc.

 Long association with international sports events, sponsorships WEAKNESS

 The presence of traces of pesticides in the cola beverages have caused damage to the brand image

 No presence in the snacks and food industry

 Lack of proper distribution OPPORTUNITIES

 Acquire other companies

 Diversify its product portfolio by entering into snacks industry to compete with Pepsi Co THREATS

 Strong competition in the aerated drinks segment from Pepsi Co means constant fight over market share.

 Health consciousness amongst people

 Difficulty in complying with different government regulations and norms in different countries

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[28] 2.4.8 COMPANY BACKGROUND

Name The Coca Cola Company

Industries served Beverages

Geographic areas served Worldwide

Headquarters U.S.

Current CEO Muhtar Kent

Revenue $ 48.01 billion (2012)

Profit $ 9.01 billion (2012)

Employees 146,200

Main Competitors PepsiCo Inc., Dr Pepper Snapple Group, Inc., Unilever, GroupeDanone, Kraft Foods Inc., Nestlé S.A. and others.

Muhtar Kent is Chairman of the Board and Chief Executive Officer of The Coca-Cola Company, a position he has held since April 2009. Previously he was President and Chief Executive Officer and earlier, President and Chief Operating Officer.

2.4.9 FUTURE FOCUS 2020 VISION

To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come.

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We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a sustainable "Roadmap" for winning together with our bottler partners.

2.4.10 ACHIEVEMENTS

Coca cola India won the Delhi Government’s Bhagirathi award for its efforts in water conservation and community development.

The World Environment Foundation(WEF)conferred the Golden Peacock Environment Management Special Commendation for the year 2006.

The ISO 14001 certificate is the internationally recognized standard of Environmental Management.

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[30]

CHAPTER 3

THEORITICAL

FRAMEWORK

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[31]

The theoretical framework for the study on “Penetration of the brand Coke” includes the concepts related to marketing,sales, market penetration, Ansoffgrowthmatrix,pricingstrategies,promotionalactivities,brand perception, STP approach, customer’s tastes and preferences.All the above concepts are studied because they have a great impact on the sales of coke products which is required to calculate Penetration of the brand coke. Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling the product or service. It is a critical business function for attracting customers.Marketing and sales differ greatly, but have the same goal. Selling is the final stage in Marketing, which also includes Pricing, Promotion, Positioning and Product (the 4Ps).

A sale is the act of selling a product or service in return for money or other

compensation. Signaling completion of the prospective stage, it is the beginning of an engagement between customer and vendor or the extension of that engagement.

Market penetration is the percentage of a target market that consumes a product or service. Market penetration can also be a measure of one company's sales as a percentage of all sales for a product.

A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service. The amount of sales or adoption can be an individual company's sale or industry while the theoretical market can be the total population or an estimate of total potential consumers for the product. It is a measure of brand or category popularity. It is defined as the number of people who buy a specific brand or a category of goods at least Once in a given period, divided by the size of the relevant market population.

Market penetration is one of the four growth strategies of the Product-Market Growth Matrix as defined by Ansoff. Market penetration occurs when a company penetrates a market in which current or similar products already exist.

Penetration is a measure of brand or category popularity. It is defined as the number of people who buy a specific brand or a category of goods at least once in a given period, divided by the size of the relevant market population

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[32] Purpose

Often, managers must decide whether to seek sales growth by acquiring existing category users from their competitors or by expanding the total population of category users, attracting new customers to the market. Penetration metrics help indicate which of these strategies would be most appropriate and help managers to monitor their success. These equations might also be calculated for usage instead of purchase.

Construction

Market penetration can be defined as the proportion of people in the target who bought (at least once in the period) a specific brand or a category of goods. Two key measures of a product’s 'popularity' are penetration rate and penetration share. The penetration rate (also called penetration, brand penetration or market penetration as appropriate) is the percentage of the relevant population that has purchased a given brand or category at least once in the time period under study. A brand’s penetration share, in contrast to penetration rate, is determined by comparing that brand’s customer population to the number of customers for its category in the relevant market as a whole.

Market penetration is the least risky growth strategy as the organization's experience with its existing markets increases the odds of success.

However, an organization should only pursue a market penetration growth strategy if at least one of the following conditions exists:

1. Unsaturated market

2. Increasing industry growth rate, but decreasing competitive market share

3. Current customers are likely to purchase higher quantities of existing products or services 4. Economies of scale provide a competitive edge

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[33] 3.1 ANSOFF GROWTH MATRIX

Figure 3.1 ANSOFF growth matrix 1. Market Penetration

Market penetration means trying to increase sales of an organization's existing products or services in its existing markets. This can be accomplished by strengthening current customer relationships to increase their rate of product/service utilization or trying to attract competitor customers or current non-users.

Market penetration seeks to achieve four main objectives:

 Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling

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[34]

 Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors

 Increase usage by existing customers – for example by introducing loyalty schemes A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.

2.Market Development

Market development means trying to increase sales of an organization's current products or services in new markets. Market development may also involve identifying new uses for an existing product or service.

3.Product Development

Product development means offering new or improved products or services in an organization's existing markets.

4.Diversification

Diversification means moving into entirely different lines of business----unfamiliar products, services or markets.

3.2 CONSUMER TASTES AND PREFERENCES

Consumer preferences and tastes are key factors affecting consumer purchase decisions and sales of the products.Changes in taste lead to increased or decreased demand, which is one factor that economists consider when looking at changes in demand.

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[35]

Consumer preferences represent each individual's desires for goods and services, which translate to choices based on income or wealth combined with the consumer's time to define consumption activities.

3.3 CONSUMPTION PATTERNS AND POTENTIAL OF MARKET:

The majority of urban and suburban Indians consume non-alcoholic store bought beverages “less than once a day” suggesting a large untapped market potential. In order to increase consumption and penetration of such beverages however, manufacturers will have to address the two primary reasons why some Indians abstain entirely, that is, health concerns and undesirable taste - as highlighted in Boston Analytics’ survey of 8300 people across 15 cities.

As with most product categories in India, consumption behavior and preferences differ dramatically across cities in India. While Tier 1 cities (or the largest metros in India) report the highest consumption, significant differences exist among these cities, e.g., in terms of the time of day store-bought non-alcoholic beverages are consumed, preferred brands for carbonated beverages, reasons for consuming a particular product type, etc.). Such differences demonstrate the need for carefully targeted marketing campaigns that appeal to the needs, behaviors and preferences of local communities.

3.4 PRICING STRATEGIES

Pricing strategies for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more profit with a better pricing strategy. When costs are already at their lowest and sales are hard to find, adopting a better pricing strategy is a key option to stay viable.

Merely raising prices is not always the answer, especially in a poor economy. Many businesses have been lost because they priced themselves out of the marketplace. On the other hand, many business and sales staff leave "money on the table". One strategy does not fit all, so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients.

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[36] Customer-based pricing

Penetration pricing

You often see the tagline “special introductory offer” – the classic sign of penetration pricing. The aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved.

Penetration pricing is the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price.

Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. In the short term, penetration pricing is likely to result in lower profits than would be the case if price were set higher.

Price skimming

Skimming involves setting a high price before other competitors come into the market. Competitor-based pricing

If there is strong competition in a market, customers are faced with a wide choice of who to buy from. They may buy from the cheapest provider or perhaps from the one which offers the best customer service.

Most firms in a competitive market do not have sufficient power to be able to set prices above their competitors. They tend to use “going-rate” pricing – i.e. setting a price that is in line with the prices charged by direct competitors.An advantage of using competitive pricing is that selling prices should be line with rivals, so price should not be a competitive disadvantage.

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[37] Cost based pricing

This involves setting a price by adding a fixed amount or percentage to the cost of making or buying the product.

The Coca-Cola Company has been very consistent with their pricing strategy over the many years they have been in business. Because they have a strong competitor, they have to keep their prices in line to compete. The ultimate goal of the company is to maximize shareholder value. The will often reduce the price of their products when entering new markets. They do this to raise brand awareness and face the competition. Once they are established, they move the prices back up to position themselves as a premium product..

Following factors Coca Cola kept in mind while determining the pricing strategy. ➢ Price should be set according to the product demand of public.

➢ Price should be that which gives the company maximum revenue.

➢ Price should not be too low or too high than the price competitor is charging from Their customers otherwise nobody will buy your product.

➢ Price must be keeping the view of your target market.

The price of Coca Cola, despite being market leader is the same as that of its competitor

3.5 STP APPROACH

STP marketing is a three-step approach to building a targeted marketing plan. The "S" stands for segmenting, the "T" for targeting and the "P" for positioning. Going through this process allows a business owner and marketing consultants or employees to formulate a marketing strategy that ties company, brand and product benefits to specific customer market segments.

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[38] Segmentation

Once the market has been defined, the next step is to segment the market, using a variety of different segmentation bases/variables in order to construct groups of consumer. In other words, allocate the consumers in the defined market to similar groups (based on market needs, behavior or other characteristics).

Targeting

There are many factors to consider when choosing a target market. These factors include: firms strategy, the attractiveness of the segment, the competitive rivalry of the segment, the firm’s ability to successfully compete and so on.

Positioning

Firms need to identify how to position their products/brands in the target market. As it is likely that there are already competitive offerings in the market, the firm needs to work out how they can win market share from established players. Typically this is achieved by being perceived by consumers as being different, unique, superior, or as providing greater value.

Brand experiences and perceptions are developed over time through a variety of sources, including:

 Previous experience with the brand

 Interactions with sales, customer service, and other employees  Recommendations from friends and colleagues

 Reviews by reputable sources  Advertising

Brand managers need to understand how customers perceive and select brands in specific product categories and market segments. You also need to know what is important to customers when making a brand decision, where customers get information about products and services, and what customers think about your brand.

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[39] 3.6 PROMOTION:

Promotion is one of the market mix elements, and a term used frequently in marketing. The specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, however there are three basic objectives of promotion. These are:

1. To present information to consumers as well as others. 2. To increase demand.

3. To differentiate a product.

There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.

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[40]

CHAPTER 4

ANALYSIS

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[41]

1.What is the type of outlet?

Type of the outlet (In a sample of 100)

Table 4.1

Type Percentage Kirana shops 46 Pan shops 31 Departmental stores 17 Super market 6

Figure 4.1

INTERPRETATION

The above data clearly shows that majority of the respondents were pan shop owners in the covered area as compared to kirana shops, departmental stores and supermarkets.

0 5 10 15 20 25 30 35 40 45 50

Kirana shops Pan shops Departmental stores Super market 46 31 17 6

Type of oultet

Percentage

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[42]

2.Where is the outlet located?

Location of outlet (In a sample of 100)

Table 4.2

Location Percentage Main Road 41 Adjacent Roads 59

Figure 4.2

INTERPRETATION

From the above data,it can be clearly seen that 59% of the outlets are located on the adjacent roads and the rest are located on the main road.

0 10 20 30 40 50 60

Main Road Adjacent Roads

41

59

Location

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[43]

3. Which brand of soft drink has the highest sale in your outlet?

Product having highest sales (In a sample of 100)

Table 4.3

Brand Percentage Coca cola 62 Pepsi 25 Fizz 8 Others 5

Figure 4.3

INTERPRETATION

From the above data ,it is clearly seen that Coca-Cola products have the highest sale from a sample of 100 outlets(i.e. 62%) as compared to its competitors’ products.

0 10 20 30 40 50 60 70

Coco Cola Pepsi Fizz Others

62

25

8

5

Brand having highest sales

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[44]

4. Which product of Coca Cola is mostly preferred by the customers?

Product of Coca cola preferred by customers

Table 4.4

Product No of respondents Thumps Up 37 Coca cola 26 Sprite 13 Maaza 15 Others 9

Figure 4.4

INTERPRETATION

From the above data,we can see that from a sample of 100 outlets, Thumps Up is the most preferred product by the customers when compared to other products.

0 5 10 15 20 25 30 35 40

Thumps up Coca cola sprite maaza others 37

26

13 15

9

Product preferred by customers

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[45]

5.How is the demand for Coke products in your outlet?

Demand for coke products (In a sample of 100 outlets)

Table 4.5

Demand No of respondents Very Good 57 Good 38 Poor 5

Figure 4.5

INTERPRETATION

From the above data,it is seen that the demand for coke products is very good in 57 outlets, good in 38 and poor in five outlets.

0 10 20 30 40 50 60

Very Good Good Poor

57

38

5

Demand for coke products

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[46]

6.How often do you place order for Coke products?

Frequency of Order Placing (In a sample of 100)

Table 4.6

Frequency No of outlets Daily 21 Alternate days 56 Weekly 23

Figure 4.6

INTERPRETATION

From the above data,it can be interpreted that most of the outlets(56) place their order for coke products every alternate day,21 outlets daily and 23 outlets place the order weekly which represent the demand for coke products.

0 10 20 30 40 50 60

Daily Alternate days Weekly

21

56

23

Frequency of order placing

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[47]

7. What is the effect of pricing decision on the sales of coke?

Effect of pricing on sales (In a sample of 100)

Table 4.7

Response Percentage High 51 Moderate 37 Low 12

Figure 4.7

INTERPRETATION

From the above data, we can see that 51 outlets said that pricing plays a high role in sales, 37 said that it has a moderate effect and 12 said that it has a low effect.

0 10 20 30 40 50 60

High Moderate Low

51

37

12

Effect of pricing

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[48]

8.Which age group of customers mostly prefer coke products?

Preference of coke products by different age groups (In a sample of 100)

Table 4.8

Age Group Percentage

Children 26 Teenagers 43 Middle age 22 Old age 9

Figure 4.8

INTERPRETATION

From the above data, we can see that teenagers prefer the coke products as per the response from 43 outlets. 0 5 10 15 20 25 30 35 40 45

Children Teenagers Middle age Old age

26

43

22

9

Preference by different age groups

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[49]

9. What quantity of coke products have maximum sales in your outlet?

Packs having highest sales (In a sample 100)

Table 4.9

Quantity No of respondents 200ml and 300ml 23 400ml and 600ml 26 1.25l and 1.75l 38 2.25l 13

Figure 4.9

INTERPRETATION

From the above chart, it can be interpreted that during the whole year,1.25l and 1.75l packs are sold the most according to the responses given by 38 outlets .

0 5 10 15 20 25 30 35 40

200ml & 300ml 400ml & 600ml 1.25L & 1.75 l 2.25 L

23

26

38

13

Quantity of coke products having highest sales

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[50]

10.What quantity of coke products are sold the most in summer season?

Highest sold packs in summer

Table 4.10

Quantity Percentage 200ml and 300ml 47 400ml and 600ml 27 1.25l and 1.75l 16 2.2.5l 10

Figure 4.10

INTERPRETATION

From the above data,it is seen that during summer season,there is more demand for glass bottles(200ml and 300ml) and the moderate demand is for 400ml and 600ml PET bottles .

0 5 10 15 20 25 30 35 40 45 50

200ml & 300ml 400ml & 600ml 1.25L & 1.75 l 2.25 L

47

27

16

10

Highest sold quantity in summer

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[51]

11.How many cases of glass bottles are sold weekly on an average?

Weekly sale of glass bottles (In a sample of 100)

Table 4.11

No of cases No of respondents Up to 1(24 bottles) 5 2-3 28 4-6 38 7 and above 29

Figure 4.11

INTERPRETATION

From the above data,it can be interpreted that weekly sale in 38 outlets is 4-6 cases, and more than 7 cases are sold in 29 outlets which depicts that 4-6 cases are sold on an average per week in most of the outlets.

0 5 10 15 20 25 30 35 40

Up to one case 2-3 cases 4-6 cases 7 & above

5

28

38

29

Weekly sale of glass bottles

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[52]

12. How many curettes/cases of PET bottles are sold weekly on an average?

Weekly average sale of PET bottles (In a sample of 100 outlets)

Table 4.12

No of cases No of outlets Up to 1 (24 bottles) 7 2-3 24 4-6 44 7 and above 25

Figure 4.12

INTERPRETATION

From the above data , we can see that 44 outlets sell 4-6 cases in a week.

0 5 10 15 20 25 30 35 40 45

Up to one case 2-3 cases 4-6 cases 7 & above

7

24

44

25

Weekly average sales of PET bottles

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[53]

13.How do you rate the behavior of salesmen during order taking and order

delivery?

Behavior of salesmen during order delivery and taking

Table 4.13

Rating No of respondents Excellent 17 Satisfactory 74 Poor 9

Figure 4.13

INTERPRETATION

From the above data, we can see that 74 respondents rated salesmen behavior as satisfactory,17 as excellent and 9 as poor.

0 10 20 30 40 50 60 70 80

Excellent Satisfactory Poor

17

74

9

Behavior of salesmen

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[54]

14. In terms of service, which brand is rated favorable by the consumers?

Favorable rating given in terms of service (In a sample of 100)

Table 4.14

Brand No of outlets Pepsi 28 Coca cola 17 Both 47 None 8

Figure 4.14

INTERPRETATION

From the above data, we can see that individually Pepsi is better in services, compared to coca cola, whereas majority of outlets rated them both as equal.

0 5 10 15 20 25 30 35 40 45 50

Pepsi Coca cola both None

28

17

47

8

Favorable rating in terms of service

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[55]

15.Do you face any problems with Coca cola in any aspect?

Problems faced with Coke

Table 4.15

Response No of respondents Yes 58 No 42

Figure 4.15

INTERPRETATION

From the above data, we can see that 58 outlets had a problem with coke whereas 42 of them had no complaints. Majority of them had problems.

0 10 20 30 40 50 60 Yes No 58 42

Problems faced with coke

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[56]

16.If yes, which kind of problem is mostly faced with Coca cola?

Kind of problem mostly faced (In a sample of 58)

Table 4.16

Problem Percentage

Cooler problem 31

Order delivery on time 22

Response from agents 5

Figure 4.16

INTERPRETATION

From the above data, it can be interpreted that maximum percentage of respondents are facing problem with Coca cola coolers which occupy 56%,Order delivery on time is problem faced by 36% of respondents and response from agents is a problem for 8% of the respondents .

0 5 10 15 20 25 30 35

Cooler problem Order delivery on time Response from agents 31 22 5

Problems mostly faced

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[57]

17. Why customers prefer coke products?

Reasons for customer’s preference (In a sample of 100)

Table 4.17

Reasons Percentage Price 24 Taste 38 Quantity 10 Availability 28

Figure 4.17

INTERPRETATION

From the above data, we can see that 38 outlets said that the customers prefer coke for its taste, 28 outlets said that the customers prefer coke due to its availability.

0 5 10 15 20 25 30 35 40

Price taste Quantity Availability

24

38

10

28

Reasons for Customers Preference

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[58]

18. Do you follow any sales promotion in your outlet?

Sales Promotion in your outlet (In a sample of 100)

Table 4.19

Response

No of respondents

Yes

84

No

16

Figure 4.19

INTERPRETATION

From the above data we can see that 84% of the outlets follow sales promotion.

0 10 20 30 40 50 60 70 80 90 Yes No 84 16

Sales Promotion

No of respondents

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[59]

19. If yes, which kind of promotional activity do you think that attracts more

customers?

Kind of promotional activity (In a sample of 84)

Table 4.19

Kind of promotional activity

Percentage

Discounts

58

Combo offers

19

Gift vouchers

7

Figure 4.19

INTERPRETATION

From the above data, we can see that customers are mainly attracted towards discounts compared to combo offers and gift vouchers.

0 10 20 30 40 50 60

Discounts Combo offers Gift vouchers

58

19

7

Kind of promotional activity

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[60]

20. According to you what may increase the sale of Coca-Cola products?

Strategy to increase sales (In a sample of 100)

Table 4.20

Strategy Percentage Price discount 56 Sales campaign 32 Attractive packing 12

Figure 4.20

INTERPRETATION

From the above data we can see that, 56 outlets suggested that discount in prices would increase sales and 32 suggested that sales campaign would increase sales.

0 10 20 30 40 50 60

Price discount Sales campaign Attractive packing 56

32

12

Suggested strategy to increase sales

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[61]

CHAPTER 5

FINDINGS AND

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[62]

5.1 FINDINGS

 The study was done mostly in the traditional formats of retail outlets.

 From a sample of 100 outlets, Coca cola has the highest sales followed by Pepsi, Fizz etc.

 It is found that the demand for coke products is good in most of the outlets and Thumps Up is mostly preferred by customers.

 Most of the retailers place order for coke products every alternate day which shows that there is good market demand.

 51% of the respondents said that there is a high effect of price variations on sales and hence pricing must be done carefully.

 It is found that coke products are mostly preferred by teenagers and children and the factor that highly influences the purchase is taste.

 Among different quantities of coke, 1.25lt and 1.75lt bottles have the highest sales, whereas in summer season, glass bottles are sold the maximum.

 On an average, most of the respondents told that 4-6 cases of glass bottles and PET bottles are sold per week.

 In terms of service, most of the respondents rated Pepsi favorable than coke which suggests coke to improve in its service.

 The retailers face problems with coke, mostly regarding the cooler and order delivery on time.

 Most of the retailers follow sales promotional activities in their outlets. The activity that attracts customers the most and increases sales is discounts and combo offers.

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[63]

5.2 RECOMMENDATIONS

In accordance with the findings of the study, I would like to give some suggestions on my behalf.

 Delivery should be done more swiftly and on time.

 Many of the respondents have preferred on the spot delivery like Pepsi instead of advance booking which is followed by Coke.

 Pricing strategies followed by coke are fluctuating frequently and hence the prices set should be made stable for a certain period until the customers get acquainted to that price.

 Since there are many problems faced by the retailers in terms of service, Coke should improve on its service.

 As promotional activities have a great impact on sales and market share, more promotions can be followed in social networking sites which will improve their sales.

 Rural area should also be given proper consideration.

5.3 CONCLUSION

Soft drinks are an impulse product. The Indian population is the largest in the world today which provides so much of opportunity for the soft drink manufacturers. So, they should implement apt strategies in order to attract more customers and gain good market share.

From the above findings and suggestions, it can be concluded that different pricing strategies, various promotional activities like discount coupons, combo offers should be followed in order to improve their sales, increase their market share and gain market dominance over their competitors. It can also be concluded that Coke products are having high demand in the market and they need to improve in terms of service to the retailers.

Coke should concentrate more on the factors that influence the customer’s purchase of coke products like age group, tastes and preferences, season, pricing, quantity, availability, etc so that it attracts new customers and also maintains the existing customer’s brand loyalty.

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[64]

ANNEXURE

QUESTIONNAIRE

Name of the Outlet:

Name of the ESM: GCC No.:

1.What is the type of outlet?

A.Kirana shops B.Pan shops C.Departmental stores D.Super markets 2.Where is the outlet located?

A.Main road B.Adjacent road

3.Which brand of soft drinks has the highest sale in your outlet? A.Thumps Up B.Coca cola C.Fizz D.Others 4.Which product of Coca Cola is mostly preferred by the customers?

A.Thumps Up B.Coca cola C.Sprite D.Maaza D.Others 5.How is the demand for Coke products in your outlet?

A.Very Good B.Good C.Poor

6.How often do you place order for Coke products? A.Daily B.Alternate days C.Weekly

Figure

Updating...

References

Outline : FINDINGS AND