A
MARKET SURVEY OF BRAND AVAILABILITY IN THE MARKET / MARKET
SHARESIN
LUCKNOW UP (E)
Submitted by
Bhaskar SinghMBA IIIrd Sem,
Enrollment No :A7001909093Specialization: Marketing and HRUnder
guidance of:
Industrial Guide Faculty Guide
Vyom Srivastava Mr.Sarveshwar PandeyRTM Manager FacultyABS
SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF
FULL TIME MASTERS IN BUSINESS ADMINISTRATION(2009-2011)
AMITY BUSINESS SCHOOL,AMITY UNIVERSITY UTTAR PRADESH
LUCKNOWDECLARATION
I hereby certify that the work which is being presented in the
project entitled, Market survey of brand availability in the market
/ market shares in partial fulfillment of the requirements for the
award degree of Master of Business Administration at AMITY BUSINESS
SCHOOL, AMITY UNIVERSITY,UTTAR PRADESH,LUCKNOW , is an authentic
record of my own work carried out under the supervision of
Mr.Sarveshvar Pandey, faculty, ABS, Lucknow.The matter presented in
this Project Report has not been submitted by me for the award of
any other degree of this or any other University.
Bhaskar SinghThis is to certify that the above statement made by
the candidate is correct and true to the best of my knowledge.
Mr. Sarveshvar Pandey Faculty, ABS Lucknow
STUDENTS CERTIFICATE
Certified that this report is prepared based on summer
internship project undertaken by me in (name of company) COCA-COLA,
Lucknow from 03rd May 2010 to 06th July 2010, under the able
guidance of Mr. Vyom Srivastav,RTM Manager,in partial fulfilment of
the requirement for award of degree of MASTERS IN BUSINESS
ADMINISTRATION (M.B.A) GENERAL from Amity University Uttar
Pradesh.Date: ___________________
Signature
Signature
Signature
Name_______________Name_________
Name ___________
Student
Faculty Guide
Course Director
ACKNOWLEDGEMENTThe project on Market survey of brand
availability in market / market shares is possible not only due to
my work. There were certain other people involved without whose
support this project would not have been possible. They provided me
the kind of backing up that one requires for successful completion
of task.
This project in itself is an acknowledgement to the inspiration,
drive and valuable guidance contributed to it by Prof. R.P Singh,
Director of Amity Business SchoolI am highly obliged and grateful
to Mr. Sarveshvar Pandey (Faculty Member & Internal Guide) for
providing me with valuable advice and endless supply of new ideas
and support for this project.
I express my sincere gratitude towards Mr. Vyom Srivastav my
project guide, whose valuable guidance, constant interest and
encouragement have helped me in successfully completing the project
and who provided practical exposure for the project and her
valuable guidance during the project work.
.
I am also thankful to all the respondents who spared their
valuable time in filling up the questionnaire and helped me in
analysis and successful completion of the project.
My special thanks to CRC Dept. (MBA program, ABS) for priceless
guidance and it goes without saying that without their support this
project would not have been possible.
(Bhaskar Singh)PREFACEIt gives me an immense pleasure to put my
project on Market survey of brand availability / market shares.
This project is made after a thorough study on the environment and
working atmosphere in the Coca cola situated Sitapur Road, Ring
Road in Lucknow.It is difficult for a common man to understand each
and every aspect of the organization. I have tried to present it in
a lucid manner through the language of common man so that everyone
may understand the complications in practice. Complications of the
project have been made clear by suitable data wherever
necessary.
My study is based on Market sevey brand availability / market
shares as a lot of effort is made by the Finance and Account
department for meeting out the obligations like proper
identification and classification of assets , movement of assets ,
accurate measurement & recording of cost to be capitalized
& depreciated etc. for proper working management.
In all my modesty, I wish to record here that a sincere attempt
has been made for the presentation of this report. I also thrust
that this study will not only prove to be of an academic interest
but also will be able to provide an insight into the area of
working in an organization.
-BHASKAR SINGH LIST OF CONTENTS
No. Particulars Page No
1. Synopsis of the report 8 2. Objective of Study 9 3. Chapter
I
Introduction to Topic 10-604. Chapter II 61-88 Introduction of
Company About company History of Coca-cola Organizational
structure
Principles & vision of Company
SWOT Analysis5. Chapter III 89 -108 Research Design Method of
Data Collection Data Analysis Limitation Of Study 6. Chapter IV
109-115 Findings Conclusion Suggestion & Recommendation 7.
Annexure 116-119 Questionnaire Bibliography
SUMMARY OF THE REPORTThe project directly deals with the growth
potential of available brands of soft drinks in the market and
shows the market share of each of available brands. So the study is
in the following manner:
If the market share of brands of Coca Cola is less than that of
its rivalry brands then the project gives a platform to the company
to develop an improved marketing and distribution plan which could
boost up sales.
The project also deals with the distribution efficiency of Coca
Cola with reference to its products and so if the company is having
loopholes in its distribution system then that could be improved by
studying this project report.
The project also deals with the competitive characteristics of
available juice products, and other carbonated products in the
market and so this project would help the company to know its
products core competencies and competencies of its rivalries. These
competencies are measured through the following parameters and
these are Pricing, Availability, Service, Taste and Preference of
consumer pack.
The project is also deals in the following manner:
The project directly deals with interaction of author with
different levels and kinds of people. So this project helps him to
understand the corporate communication system.
OBJECTIVE OF STUDY
1. To know about the popularity & consumption level of coca
cola as a brand.
2. To know about the taste & various cold drink under the
name of coca cola.
3. To know about the preference of people for different cold
drink.
4. To know about the reason to dislike any particular cold
drink.
5. To know about the services provided by the agencies or
shops.
6. To know about the most consumable quantity &
packing.CHAPTER I
THEORETICAL PRESENTATION OF THE TOPIC
INTRODUCTIONThe meaning of brandsBrands are a means of
differentiating a companys products and services from those of its
competitors.
There is plenty of evidence to prove that customers will pay a
substantial price premium for a good brand and remain loyal to that
brand. It is important, therefore, to understand what brands are
and why they are important.
Macdonald sums this up nicely in the following quote emphasizing
the importance of brands:
it is not factories that make profits, but relationships with
customers, and it is company and brand names which secure those
relationshipsBusinesses that invest in and sustain leading brands
prosper whereas those that fail are left to fight for the lower
profits available in commodity markets.
What is a brand?One definition of a brand is as follows:
A name, term, sign, symbol or design, or a combination of these,
that is intended to identify the goods and services of one business
or group of businesses and to differentiate them from those of
competitors.Interbrand - a leading branding consultancy - defines a
brand in this way:
A mixture of tangible and intangible attributes symbolized in a
trademark, which, if properly managed, creates influence and
generates value.Three other important terms relating to brands
should be defined at this stage:
Brand equityBrand equity refers to the value of a brand. Brand
equity is based on the extent to which the brand has high brand
loyalty, name awareness, perceived quality and strong product
associations. Brand equity also includes other intangible assets
such as patents, trademarks and channel relationships.Brand
imageBrand image refers to the set of beliefs that customers hold
about a particular brand. These are important to develop well since
a negative brand image can be very difficult to shake off.
Brand extensionBrand extension refers to the use of a successful
brand name to launch a new or modified product in a new market.
Virgin is perhaps the best example of how brand extension can be
applied into quite diverse and distinct markets.
Brands and productsBrands are rarely developed in isolation.
They normally fall within a business product line or product
group.
A product line is a group of brands that are closely related in
terms of their functions and the benefits they provide. A good
example would be the range of desktop and laptop computers
manufactured by Dell.
A product mix relates to the total set of brands marketed by a
business. A product mix could, therefore, contain several or many
product lines. The width of the product mix can be measured by the
number of product lines that a business offers.
For a good example, visit the web site of Hewlett-Packard (HP).
HP has a broad product mix that covers many segments of the
personal and business computing market. How many separate product
lines can you spot from their web site?
Managing brands is a key part of the product strategy of any
business, particularly those operating in highly competitive
consumer markets.
The American Marketing Association (AMA) defines a brand as a
"name, term, sign, symbol or design, or a combination of them
intended to identify the goods and services of one seller or group
of sellers and to differentiate them from those of other
sellers.
Therefore it makes sense to understand that branding is not
about getting your target market to choose you over the
competition, but it is about getting your prospects to see you as
the only one that provides a solution to their problem.
The objectives that a good brand will achieve include:
Delivers the message clearly
Confirms your credibility
Connects your target prospects emotionally
Motivates the buyer
Concretes User Loyalty
To succeed in branding you must understand the needs and wants
of your customers and prospects. You do this by integrating your
brand strategies through your company at every point of public
contact.
Your brand resides within the hearts and minds of customers,
clients, and prospects. It is the sum total of their experiences
and perceptions, some of which you can influence, and some that you
cannot.
A strong brand is invaluable as the battle for customers
intensifies day by day. It's important to spend time investing in
researching, defining, and building your brand. After all the brand
is the source of a promise to your consumer. It's a foundational
piece in your marketing communication and one you do not want to be
without.
Branding is used to create emotional attachment to products and
companies. Branding efforts create a feeling of involvement, a
sense of higher quality, and an aura of intangible qualities that
surround the brand name, mark, or symbol.
Successful branding efforts build strategic awareness where
people not only recognize your brand, but they also understand the
distinctive qualities that make it better than the competition.
Branding is more important today than ever due to ever-increasing
advertising clutter, media fragmentation, the commoditization of
products, and the seemingly limitless choices we are offered in
just about every product category.
As marketers, we need to work hard to ensure that we are
offering our customers strong brands that are clearly
differentiated and that offer clear, real value and unique
benefits. The need for branding has never been greater.
IMPORTANCE OF BRANDING A strong brand influences the buying
decision and shapes the ownership experience.
Branding creates trust and an emotional attachment to your
product or company. This attachment then causes your market to make
decisions based, at least in part, upon emotion-- not necessarily
just for logical or intellectual reasons.
A strong brand can command a premium price and maximize the
number of units that can be sold at that premium.
Branding helps make purchasing decisions easier. In this way,
branding delivers a very important benefit. In a commodity market
where features and benefits are virtually indistinguishable, a
strong brand will help your customers trust you and create a set of
expectations about your products without even knowing the specifics
of product features.
Branding will help you "fence off" your customers from the
competition and protect your market share while building mind
share. Once you have mind share, you customers will automatically
think of you first when they think of your product category.
A strong brand can make actual product features virtually
insignificant. A solid branding strategy communicates a strong,
consistent message about the value of your company. A strong brand
helps you sell value and the intangibles that surround your
products.
A strong brand signals that you want to build customer loyalty,
not just sell product. A strong branding campaign will also signal
that you are serious about marketing and that you intend to be
around for a while. A brand impresses your firm's identity upon
potential customers, not necessarily to capture an immediate sale
but rather to build a lasting impression of you and your
products.
Branding builds name recognition for your company or
product.
A brand will help you articulate your company's values and
explain why you are competing in your market.
QUALITIES OF A SUCCESSFUL BRAND
Core Elements Description Example
CompetentsA product or service must fulfill its promise and
ensure the delivery of high-quality services are aligned with the
company/organizations vision, and delivered with genuine commitment
to customer satisfaction.
Dell Inc. provides consumers with the most effective computing
solutions to meet their needs. As a result, Dell has become an
industry-leader.
Core Elements Description Example
Clear
A strong brand is clear about what it is and what it is not
Volvo is clear about its commitment to safety. Their brand is not
about speedy sports cars, small economy cars, or luxury cars, but
about safety and the people you care to keep safe.
Compelling
A brand is appropriate for and interesting to its target
audience. If not, it is ineffective and useless. BMW is focused on
providing the ultimate driving experience for its
luxury-performance automobile consumers
ConsistentBrands are always what they say and who they are to
bolster their brand attributes. Wal-Mart has been consistent
branding itself as a low-cost retailer with a pledge to customer
service, and satisfaction.
Constant
Brands are always visible to their customers and prospects.
Coca-Cola is the worlds most recognized brand with its trademark
bottle shape and dynamic ribbon below the Coca-Cola
Connected
A brand connects to appropriate communities, affiliations, and
partnerships. Establishing and maintaining a network of partners,
intermediaries, and customers is important. Organizations should
develop relationships that can reinforce their brand. The United
Way of America has established and built partnerships with
government, schools, 211s, National Football League, and other
organizations that have reinforced their focus on community
building.
Committed
Brands are not a one-time event; it is not about fads, but built
over time and requires steadfast commitment to ensure long lasting
success. Brands build value over time through consistently living
the
Brand promise. The strongest brands in the market have either
been around for a long time, such as Coke and IBM. Or they have set
the stage to be here for a long time, such as Amazon and
Microsoft).
Current
A brand is based on current needs with room to meet new and/or
different needs in the future.
STRATEGIES OF COCA-COLAIn order to achieve this mission, Coca
Cola create value for all the constraints it serve, including
consumers, customers, bottlers, and communities. The Coca Cola
Company creates value by executing comprehensive business strategy
guided by six key beliefs:
1. Consumer demand drives everything Coca Cola do.
2. Brand Coca Cola is the core business
3. Serve consumers a broad selection of the nonalcoholic
ready-todrink beverages they want to drink through out the day.
4. Be the best marketers in the world.
5. Think and act locally.
6. Lead as a model corporate citizen.
The main strategies discussed here are as follows:
Strategic Planning Strategies of Quality Expanding Target Market
Strategies of Getting Goals I.E. "High Profits" Marketing Strategy
Price Strategy Promotion Strategies Distribution Channels
Facilitating the Product By Infrastructure Advertisement Sales
Promotion ActivitiesThe details are as follows:
STRATEGIC PLANNING
In last years, the company had a great success, as the strategy
worked which resulted in making Coca Cola Company the world's
leading company. Company accomplished the crust of it's strategy as
Worldwide volume increased by 4 percent with strong international
growth of 5 percent.
Earnings per share grew by 82 percent.
Return on common equity grew from 23 percent to 38 percent this
year.
Return on capital increased from 16 percent in 2000 to 27
percent.
The company has generated free cash flow of $3.1 billion, up
from $2.8 billion
The marketing strategy for the future is as follows:
Accelerate carbonated soft-drink growth, led by Coca-Cola.
Selectively broaden the family of beverage brands to drive
profitable growth.
Grow system profitability and capability together with our
bottling partners.
Serve customers with creativity and consistency to generate
growth across all channels.
Direct investments to highest potential areas across
markets.
Drive efficiency and cost-effectiveness everywhere.
STRATEGIES OF QUALITYAfter Micro and macro analysis Brand "coke"
is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
EXPANDING TARGET MARKETIn last 2 years Coke has come back in
aggressive manner.
Consumer has choice
Attractive brand name
Brand differentiating
Consumer Has Got Choice:Now the consumer has got choice. Because
now they know the name of another big brand, though coke is the 2nd
best name but it can get a better position after some time
Attractive Brand Name:Now the consumers know the Name of Coke,
because Coke is the name, which is the most popular after the word
"ok". So people can better differentiate brands with each
other.
Brand Differentiation:Now different companies have got different
brand names. So, people can distinguish between brands. Two major
brands "coke" and "Pepsi" also have brand names.
STRATEGIES OF GETTING GOALS i.e. "HIGH PROFITS"To increase the
price is the least thing, which Coke can adopt. There are so many
ways through which Coke can increase the profits. Some major ways
are as follows. Volume can be increased
Interest level of consumers
To take part in energetic festivals
MARKETING STRATEGYWhat people want in a beverage is a reflection
of which they are, where they live, how they work and play, and how
they relax and recharge. Whether you're a student in the United
States enjoying a refreshing Coca-Cola, a woman in Italy taking a
tea break, a child in Peru asking for a juice drink, or a couple in
Pakistan buying bottled water after a run together, we're there for
you. We are determined not only to make great drinks, but also to
contribute to communities around the world through our commitments
to education, health, wellness, and diversity. Coke strives to be a
good neighbor, consistently shaping our business decisions to
improve the quality of life in the communities in which we do
business.
PRICE STRATEGYTrade Promotion:Coca cola company gives incentives
to middle men or retailers in way a that they offer them free
samples and free empty bottles, by this these retailers and middle
man push their product in the market following "Seen as sold"
Different Price in Different Seasons:Some times Coca Cola
Company changes their product prices according to the season.
Summer is supposed to be a good season for beverage industry in
Pakistan.
So in winter they reduce their prices to maintain their sales
and profit.
PROMOTION STRATEGIESGetting shelves:They get or purchase shelves
in big departmental stores and display their products in those
shelves in attractive style.
Eye Catching Position Salesman of the coca cola company
positions their freezers and their products in eye-catching
positions. Normally they keep their freezers near the entrance of
the stores.
Sale PromotionCompany also do sponsorships with different
college and school's cafes and sponsors their sports events and
other extra curriculum activities for getting market share.
DISTRIBUTION CHANNELSCoca Cola Company makes two types of
selling Direct selling
Indirect selling
Direct SellingIn direct selling they supply their products in
shops by using their own transports. They have almost 450 vehicles
to supply their bottles. In this type of selling company have more
profit margin.
Indirect SellingThey have their whole sellers and agencies to
cover all area. Because it is very difficult for them to cover all
area of Pakistan by their own so they have so many whole sellers
and agencies to assure their customers for availability of coca
cola products.
FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their
product in good manner company has provided infrastructure these
includes: Vizi cooler
Freezers
Display racks
Free empty bottles and shells for bottles
ADVERTISEMENTCoca Cola Company use different mediums
Print media
Pos material
TV commercial
Billboards and holdings
HOW COKE DETERMINE THE YEARLY BUDGETCoke determines its yearly
budget by the
Sales volume
Profitability
Target volume
Sales Volume:Coke determines its yearly budget through the sales
volume. They first concentrate on the thing is "what is the
condition of their sales?" if the condition is good of their sales
then they definitely increase their production and sales
volume.
Profitability:The second thing through which they determines
budget is the "profit" .if they r getting profits with the high
margin, then they definitely want to increase their profits in the
next coming year. To get profit is the first priority of the
Coke.Target Volume:To run the business every industry increases
volume in specific time period. If industry achieves those goals in
that period then for the coming year it increases the volume of the
target.
Coke did the same.
SALES PROMOTION ACTIVITIES
Coca-Cola Cricket
Coca-Cola Concerts
Coca-Cola Food Mela
Coca-Cola Basant Festival
Coca-Cola GO-RED
Coca-Cola Party in a Park
Coca-Cola Shopping Festival
Coca-Cola Pet Promotion
Coca-Cola Ramzan Campaign
Coca-Cola Wonder of the World Promotion
Coca Cola TV Maaza
Coca-Cola & Mc Donald's
Fanta & Sprite Launched
Diet Coke
Coca-Cola
From the Three As to the Three Ps
Coca-Cola used to focus its strategy on the three As:
availability, acceptability, and affordability. While these
provided for tremendous growth, they also led to lowered entry
barriers. Today, Coca-Colas mantra is the three Ps: preference,
pervasive penetration, and price-related value.The Power of Brand
AccessibilityIf you were another soft drink company, you might
define your competitive frame of reference as the cola market or
the soft drink market or even the beverage market. But Coke thinks
of its business and its market share in terms of share of human
liquid consumption. This makes water a competitor. In fact, a Coke
executive has said that he wont be satisfied until there is a
Coca-Cola faucet in every home. Coca-Colas mantra is within an arms
reach of desire.Coca-Cola is Serious about Brand Building
Each month, Coca-Cola tests 20 brand attributes with 4,000
consumers to measure movement. The company also compensates (bonus
and other compensation components) a large portion of its senior
managers based on brand preference.One Final Coca-Cola Fact
A recent Coca-Cola annual report reported that the second most
recognized expression in the world after ok? is Coca-Cola.Coca Cola
has been the leading brand in the world for eight years running and
probably would remain so for many years because the company
continues to reinvent its brand.
And Google, which is only ten years old has made it to the
number 10 position in the world.
The secret behind the Coca Cola brand success is not the result
of mere chance or excessive spending on advertising, it is as a
result of careful and systematic strategy and Ghanaian businesses
can learn from that.
Interbrands has this advice for businesses in its 2008 report on
brand rankings: Regardless of your view of the world, in good times
and bad, your brand is your companys most valuable asset.
Understanding how your brand creates value for you is key to
maintaining market leadership or establishing it in the first
place.
Indeed, in Ghana, bland mediocrity has succeeded for so long to
the extent that businesses have grown to take consumers for
granted. This honeymoon, however, is not likely to last for long as
information and knowledge becomes widespread.
As a matter of fact the 2008 general elections in Ghana is a
typical example as well as a signal that the average Ghanaian is
becoming sophisticated and informed in taking crucial decisions
when it matters most.
KEY ELEMENTS OF MARKETING STRATEGY1. Assessing Market
Potential.2. Route Riding and Indicators.3. Market Development.4.
Sales Planning.5. Consumer Concern Handling.ASSESSING MARKET
POTENTIAL
Market potential is needed to draw better market strategies so
that it adds on to our business . Market potential means that what
market offers us in form of business. Wrong asessment canlead us to
wrong conclusion hence wrong strategies .
TOOLS REQUIRED TO ASSESS THE MARKET.
1. Every Dealer Survey (EDS).2. Channel Assessment 3. FMCG
penetration.4. Chilled Availability.5. Market Share6. Per Capita
Consumption.7. CAGR8. VPO9. PPO10. ActivationEvery dealers survey
:
Every Dealers Survey gives us the true picture of the market and
the satisfaction level of our dealers with
Company
The concerned ASM
The Brand
The Product.
Salesmen. MD (Market Developer)This tool of assessing the market
is an effective tool which not only gives us the critical
information of our outlets but also the activities done by our
competitors in the market, so it gives us the true picture from
which we can derive many information which can prove critical for
our sales and will help us in better strategy making.
Channel assessment:
For an easier understanding of our market, we divide the market
into channels and then study them channel wise.
Grocery: The local kirana store, in other words we can say a
convenience store.
Pan Bidi: small vendors who sells tobacco and other related
products.
Eating and Drinking: place which has at least five table chairs
to serve the customers are considered as eating and Drinking.
But in the city like Lucknow, city had outlets belonging to
other channels like :
Cinema
Transportation
Education
FMCG and village penetration:
In order to know the potential of the market one needs to know
how many outlets are there and then how many FMCG outlets are there
in it , further how many Coke outlets are there , it will tell us
how much we covered Area a market and how much potential is still
un tapped.
FMCG penetration:
NUMBER OF COKE OUTLETS / NUMBER OF FMCG OUTLETS * 100
Village penetration:
Village penetration survey shows us that how many villages with
a population of 500 needed to be reached
NUMBER OF KO SELLING VILLAGE / NUMBER OF FMCG SELLING VILLAGES*
100
Chilled availability:
The concept of this is that coke and its product must be served
chilled and in order to ensure that the market has to have coolers
for it. Surveys of the number of coolers in the market will us to
decide the amount of SGAs (Sales Generating Assets) we have to
invest in order to achieve the target.
NUMBER OF COKE COOLERS / NUMBER OF COKE OUTLETS * 100
Market share
This ratio gives us the information about the penetration level
of our brand and its product in the current market, where similar
kind of products are also available to the same target group or the
target customer.
NUMBER OF KO COMPANY PRODUCTS / TOTAL VOLUME OF SIMILAR PRODS
*100
Per capita consumption
It tells us about the consumption level in our region for e.g.
Andhra Pradesh has PCC as 7
ANNUAL VOLUME IN UNIT CASES / POPULATION * 24
(24: TOTAL NUMBER OF BOTTLE IN A CASE IS 24)
If the PCC has gone down by the years it shows that the
consumers have either shifted to other brand or product and the
satisfaction level with our brand has gone down.
Historic data: CAGR
CAGR is the Compounded Annual Growth Rate. It tells us the
growth we have achieved when we compare it to the performance of
last year.
VPO: volume per outletVPO gives us the vertical growth. The
objective of our strategy making should be to increase this VPO
i.e. increasing the total volume at each outlet which will
eventually add on to our target and sales.
ANNUAL VOLUME / NUMBER OF OUTLETS
PPO: People per outlet
While VPO shows us the sale performance, PPO is an important
indicator of our services to our customers. Every strategy making
should aim at decreasing PPO sp as to give better services to our
customers.
POPULATION / NUMBER OF OUTLETS
V P O P P O
Activation:One of the key elements of our business. Better
visibility means better response hence better sales. Proper
activation is needed as per the market conditions .Use of various
activation elements in our market gives has a wider scope to better
our sales.
These activation elements are:
1. Flange
2. Rack.
3. Hangers.
4. Drinking shot.
5. Banners.
6. Posters.
7. Table top
8. Menu board.
9. Price Card.
10. Road Standee.
11. 3 Tier rack
12. Flex
13. Coolers
ROUTE RIDING AND INDICATORS
Route riding is one way by which one can check many aspects of
his market , whether it is the penetration in the market or the
salesmen and his effectiveness, during this period I found that
route riding by ASM should be made compulsory once a week on every
route .
Basically route riding means going with the vehicle on the route
, to every shop and to every dealer by doing so you , one can know
the ground reality , the requirements of the market and most
importantly the doings of the competitors .
Effective routes:
For effective route riding the foremost thing to remember is
to
-reduce the unproductive driving time.
-avoid unnecessary halts at dealers shop
-time should result in business.
-provide required frequency to outlets.
Key indicators:
Key indicators are important tools for making route evaluation.
They are monitored constantly to see how well a route is doing.
They are:
1. Ratios or percentages
2. Monitored all time
3. Compared to standard.
STANDARDS: a minimum level of performance which we expect to
achieve in quantity, quality and value. Standards allow our
supervisor to: Set clear performance guide Measure performance and
consistency in outlet execution
We at coke take two standards
Local standards
Industry standards.
Recommended key indicators:
Completed calls: it is the number of calls made compared to the
number of calls assigned. Recommended standards should be 100%
Number of completed calls / Number of scheduled calls * 100
Success rate: or in other word we can say these are the
productive calls or the conversion rate. It is the number of calls
generated compared to the number of calls assigned and this
measures the performance of the salesmen. Recommended standard
should be 80%-90%.
Number of calls with sales / number of scheduled calls *
100.
Case sold daily: It is the cases sold or delivered in a day. It
is the best way to monitor sales and watch for trends. Recommended
standards are more than 70 %.
Number of completed calls / number of scheduled calls * 100
Stock return rate: Number of full cases that return to the depot
compared to the number of cases loaded. This ratio is an indicator
of the efficiency of the salesmen. Stock return rate that is
recommended is not more than 30 %.
Number of cases returned / number of cases loaded * 100
MARKET DEVELOPMENT
Developing the market is a continuous process that needed to be
done through the year and all the time. As discussed earlier there
can be two kind of development possible, one is vertical and the
other is horizontal. As VPO and PPO i.e. Volume per outlet and
People per outlet .Vertical development is done by VPO and the
horizontal development is done through PPO.
To increase the VPO following things are needed to be done:
1. Adequate glass inventory: at least five times the days sale
inventory should be maintained all the time by the dealer; this
will ensure that even if the salesmen misses a call in peak season,
there are adequate empties.
2. Adequate market coverage: one can decide the number of
required visits which are needed as per the demand of the area.
Plan it as per the assessment report.CASE DEPOSITCOMPETITORS
ACTIVITY / FREQUENCYFREQUENCY
LOW(5days) HighEqual to competition
LOW(5days) lowLow
3. Vehicle support : choice of vehicle depends on :
-cases sold daily.
-seasonality.
-case deposit.
-competition frequency
-traffic regulation
-road conditions.
4. Trained salesmen
5. Merchandising: or ITMO i.e. In- trade merchandising
opportunities basically a concept used to know and rate the
merchandising performance of an outlet or a route individually on
the basis of a certain defined set of parameters. Such as :
-cooler purity
-warm display
-inside display
-availability
6. Right mix of product: key parameters we availability is one
of the key element in this business; we have to ensure that each
brand should be made available to the consumer. So right mix of
brands is needed.
7. Right SGA: SGA s is Sales Generating Assets (visicooler &
fridges) types of cooler will be decided as per the sales given by
the dealer annually. The size of the cooler in every outlet should
be 1.5 to 2 times the amount of its peak daily sale.
8. Right price mix
For horizontal development we need to decrease the PPO, in order
to do so we need to open new outlets . We need to see the potential
of the shops.
VPO PPO
SALES PLANNING
A sales planning is the combination of the volume projection,
the SGA plan, the promotion plan and the route plan for the year.
This will help us making right strategy for our market. To make a
sales plan, we need:
Historic data
Chilled availability
FMCG penetration
Per capita consumption
Market share
Population
Effect of promotion
PPO
VPO
For volume plan we need:
Glass inventory plan
Route plan
Effective time planning
Mapping
CONSUMER CONCERN HANDLING
A satisfied consumer means
Increased brand loyalty
Recommends us to colleagues , family and friends
Appreciates price/value importance
Tries out our new range of product/repeat purchase
Essential for the continuity of our business
Responding to consumer concerns
Take proactive action
Take immediate action
Identify underlying concerns
Take positive action to eliminate cause
Inform and educate the consumers through effective dialogue or
other media
Report it immediately
Consumer concern dos
Apologize sincerely but without accepting blame
Be diplomatic and never loose your temper
Dont take the complaint personally
Be calm and composed
Listen carefully
Show a sincere interest in the caller
Know the facts about your products
Know about the hygiene measures in the manufacturing process
Do not refer to any other incident except this one
Confirm the solution to the consumer
Be punctual when you have to visit the consumer
Consumer concern donts
Blame the consumer
Bad mouth the competitors
Blame someone else
Be funny or make joke about the complaint
Interrupt the consumer while he is talking to you
Say words that do not match your tone
Use clinches
Take on a poor me, I only here attitude
Put on an I dont know attitude
FREQUENTLY ASKED QUESTIONS?
Can soft drinks be part of healthy diet?
Yes. Soft drinks contains water, so they can meet the bodys
fluid requirements .In addition, the sugar provides quick
energy.
What about sugar or calories?
The amount of sugar and calories in soft drinks is about the
same as that in orange juice as and less than that in apple or in
grapes juice.
Does sugar make kids hyperactive?
No. Studies show no association between sugar consumption and
hyperactive behavior.
Are soft drinks bad for my teeth?
All common sugars contribute to the decaying of teeth. However,
sugar in soft drinks has minimal effect on teeth because its in a
liquid form. Comments like a tooth placed in a glass of coke will
disappear are misleading.
Do soft drinks have a lot of caffeine?
No. Coca-Cola contains only 1\3rd the amount of caffeine found
in the same amount of brewed coffee.
Is carbon dioxide harmful?
Carbon dioxide when added to water for carbonation, is not
harmful upon ingestion.
What is Aspartame?
Aspartame is a low calorie sweetener made primarily of two amino
acids, aspartic acid and phenylalanine. Is safety in KO products
has been well established.
Is there a connection between soft drinks and bone?
No. Compared to other dietary sources of phosphorus like meat,
cheese and nuts, soft drinks contribute only 2% of the total
dietary phosphorus.
Does the acid in Coke damage teeth or bone?
No. There is a small amount of edible acid present in many
foods, including fruit juices, and buttermilk. It does not harm
your body.
Is there any relation between soft drinks and kidney stone?
Soft drinks do not cause kidney stones. In fact, they provide a
pleasant and refreshing way to consume part of a your daily fluid
requirement.
RED: RIGHT EXECUTION DAILYRED is the third party survey to
ensure that the brand name is carried out by every dealer in the
same dignity and pride. Brand name such as COKE carries with itself
a great amount of respect and dignity and the same feeling should
be transferred to our customers, RED is one aspect which is more
important to us than the sale, it makes sure that the soul of
company is same whether it is a grand shop in the mall or a small
beedi shop in the outskirts of the city. Whether it is a dealer who
buys 100 cases per day or a merchant who buys 1 case a day every
body has to follow the rules and regulation laid under the RED.
Visi cooler are the important part of this, we have to ensure that
they are pure, price cards are placed and many other aspects which
are covered under the RED has to be followed.
RED is done for three segment of the market, they are:
1. Diamond
2. Gold
3. Silver
RED is done on three parameters:
1. Visicooler
2. Availability
3. Activation
RED gives us a score out of 100 and we at COKE should strive to
improve our score, better score means better we are in the above
three parameters.
Below is the survey format on which each element is marked with
some point.
VARIOUS MODELS USED AT COKE:
1. PITA MODEL
2. 4 As MODEL
3. SEGMENTATION OF THE MARKET.
PITA MODEL:
No. of consumers %of population amount in volume Amount of
profit
in given universe. that buy product . bought per in value
transaction. per transaction.
= * * *
PITA model helps us to understand and makes it clear to the
dealer why he should sell coke and its other brands. In other words
we can say this model summarizes the profit story of the coke. We
have to make the dealer believe that his market has the potential
of making out good business.
We at coke must ensure that we make business partners rather
just dealers who sell our brand on cash and carry business.
The model takes four parameters into account, they are :
1. Population.
2. Incidence.
3. Transaction.
4. Amount.
Population:
Here with population we mean the total population of the
territory which we are targeting. All, total people living in that
area is our population whether they are soft drink consumers or
not. We must try to increase our visibility that will attract more
customers to our territory; our aim is to increase this domain i.e
to increase this population. And this is only possible through
penetration and really good and effective activation of the area
using various marketing elements.
Incidence:
Here we talk of those out of the population who are our
customers and consumers, they are the most important element of our
business and utmost care should be taken not just to satisfy them
but also to retain them. Here brand and its image play the crucial
part. Through out the period I found Coke holds a better image as a
product than its competitors. Because dealers tend to remain with
the company inspite of various options given to them by the
competitors and the study in the two locations showed that ThumsUp
had the strongest brand image and brand identity not only in the
eyes of dealers but also the customers. We should make the dealer
believe in the brand image and demand of our products.
Transaction:
Volume of transaction done by the dealer with us , it depends on
the daily sale from his outlet in order to increase this we must
support the dealer with various marketing elements so that
visibility of the brand increases which will eventually help in
sales .
Amount:
It is the profit per transaction that our dealer can make out
per transaction. Making him believe that his investment is save and
the returns are for the long run and our association with him will
help us both , should be our methodology to explain this model.OUR
MARKET CAN BE SEGMENTED ALONG THREE LINES OUTLETS VOLUME, LOCALITYS
INCOME & CHANNEL CLUSTER CHANNEL CLUSTER
GROCERY
EATING AND DRINKING
CONVENIENCE
OUTLET
BRONZE SILVER GOLD DIAMONDVOLUME
LOW
MEDIUM
HIGH
LOCALITY INCOME
This model gives us the segmentation of the population what we
had discussed in the PITA model. The segmentation is done on three
parameters, these are ;1. Channel.
2. Outlet Volume.
3. Locality Income
CHANNEL: is the medium of distribution of our brands.
Grocery: Outlets primarily engaged in retailing of food &
various household items. It includes grocers (outlets dealing
mainly in grains, provisions, spices, edible oil, vanaspati etc)
and general stores (outlets selling item of day-to-day requirements
& stocking a variety of branded products)
E&D: Outlets selling items to eat which are being cooked
within outlet, made at the outlet with possibility of consuming
those products within the outlet. The outlet may have a place to
sit .It include Bakery/ Mithai store /Restaurants / Bars / Juice
corners / Soft Drinks Shop / Cafes etc.
Convenience: Includes outlets which are small stores or shops,
generally accessible locally. These are often located alongside
busy roads. It includes Chemists / STD booths / Pan Beedi shops
etc.
OUTLET VOLUME: We classify our stores or our dealers onto four
parameters as per the volume of sale given by them in the past
year, below is the table which helps us to classify the outlets
into diamonds, gold, silver, bronze.
OUTLET CLASSIFICATIONKO VPO SLABS
DIAMOND >800
GOLD500-799
SILVER200-499
BRONZE50%22
50%22
50%22
50%22
50%22
50%22