Marketing COKE

8/10/2019 Marketing COKE

1/62

INDUSTRY PROFILE

Marketing of consumers is a challenged exercise. It requires a lot of precision on the part of marketing managements and through and continuous

study of the marketing has become even difficult in he light of the competition

both quantitatively and qualitatively.

The economic policy of the Government has brought many changes in

the Indian market. The size for many consumer products has increased

substantially. The plethora of choice an intensive competition is evident is

evident in the markets. The consumer is the most important factor. It is he/she

ho determines the principles of marketing to a large extent.


2/62

COMPANY PROFILE


3/62


4/62

*sa !andler+ an ambitious *tlanta druggist some ho acquired control

of the company later in #$$$. ith !harley )emberton ;'ohn,s son< claiming

his right to the drink. This kicked off t o !oke clones by the names of= >um

>um and ?oke. &espite illness )emberton continued ith his ork anddeveloped a ne drink+ a modified cola ith celery extract but died on *ugust

#%+ #$$$ before finishing the drink. 8xactly t o eeks after )emberton died

!andler bought the remaining interest of alker and &ozier for 4#+777 ith the

exception of the alker+ !andler @ !ompany had legal rights to !oke"!ola.

In #$A#+ nine years prior to the invention of the paper clip+ *s a !andler

became the o ner of the five"year"old !oke"!ola business and incorporated

The !oke"!ola !ompany and registered the B!oke"!olaB trademark ith the

C.(. patent. The secret formula as dubbed B1DB+ and as only shared ith a

handful of his most trusted associates.

!andler figured he Eust had to get people to try !oke"!ola and they,d

buy it. 9istory proved him right+ he branched out beyond soda fountains and

took the initiative to bottling. In #$AF+ the company opened its first syrup


5/62

manufacturing plant outside *tlanta in &allas Texas. The follo ing year

plants opened in !hicago and 0os *ngeles. 'oseph *. :iedenharn+ of

icksburg+ Mississippi installed bottler machinery in his candy store in #$AF

and became the first !oke"!ola bottler in the Cnited (tates. The idea as that people should be able to,take their refreshment ith them herever they go.

Three years later+ ith inventive advertising and promotions like souvenir fans+

calendars depicting robust young omen and countless novelties !oke"!ola

had made its ay into every state in the C.(.

In #$AA+ large"scale bottling as ushered in by t o !hattanooga+

Tennessee entrepreneurs ho bought the rights to bottle and sell !oke"!ola

across the Cnited (tates. That operation as the forerunner of the largest+ most

idespread production and distribution net ork in the orld. The !oke"!ola

(penserian script as a reminder as splashed on the sides of buildings and

barns alls to the extent of 5. million square feet in *merica,s by #A7$. :y

#A%7,s+ the company moved onto more modem methods of promotion as other

means of advertising had emerged.


6/62


7/62

*lthough !oke"!ola had dabbled on several industries over the years+ in

#A$# oberto Goizueta a chemical engineer reEuvenated the business and

engineered the largest diversification. The 4177 million acquisition of

!olumbia pictures in #A$5. In #A$ + !oke changed its original recipe for aB2e !okeB. Market shares had fallen and Guizueta changed the name

toB2e !okeB the same as reEected by the consumers. This forced the

company to get back to the original recipe. In #A$%+ it consolidated the C.(.

bottling operation it o ned into !oke"!ola 8nterprises and sold # J of the

ne company to the public.

!oke "!ola company thought that the 8ntertainment business ould be

good for them and in #A$5 acquired !olumbia )ictures Industries+ Inc+ hich

Eoined Tri (tar )ictures in #A$1+ to form the independent corporation !olumbia

)ictures 8ntertainment+ Inc. !oke"!ola then sold :elmont (prings ater

!ompany+ Inc. #A$A+ closing out a decade of accelerated gro th and change.

hile obert as in the company the value rose from F billion dollars to #F

billion dollars. In #AA1+ &ouglas Ivester+ the architect of !oke"!ola,s

restructured bottling operations+ took over the company.


8/62

&espite the company running into legal problems like the -rench

government blocking acquisition the company in #AA1+ antitrust la suit from

)epsi in #AA$+ shutting do n of :elgium and -rance operations for t o eeks

in 'une of #AAA the company continue to gro in all respects. The noble acts of the !oke"!ola !ompany like assistance to *merican ed !ross and :ig

:rother :ig (ister and the company,s value system+ and quality for not only its

product but also life ould continue to lead the company,s gro th.


9/62

PRODUCT PROFILE


10/62

PRODUCT PROFILE

!oke"!ola from an average six drinks a day at the time of invention is

consumed currently at the rate of more than $HF million drinks per daygenerating sales over 4# bn a year. The obEective of the !oke"!ola !ompany is

to benefit and refresh everyone. -ounded in #$$%+ !oke"!ola !ompany is the

orld,s leading manufacturer+ marketer+ and distributor of nonalcoholic

beverage concentrates and syrups+ o ns nearly F77 beverage brands. The

corporate headquarters is located in *tlanta+ ith local operations in over 577

countries around the orld. *nother aspect involving !oke"!ola,s distribution

system is the companies, ambitious product line.

These beverages are classified into four separate groups+ hich consist

of the follo ing= !arbonated (oft &rinks ;!(&< " !oke+ (prite+ (urge+ &r.

)epper etc 2o !arb" 2estea+ Euices+ -ruitopia etc IcoTonics" )o erade

and ater " &esani ;filtered ater


11/62

The Customers

The company,s core brands are !oke"!ola !lassic+ &iet !oke+ and

(prite+ hich rank first+ third+ and fifth among all carbonated soft drinks in 2orth *merica. !oke"!ola,s primary focus ith these products is Binstant

consumptionB+ because that is an area in the market that has the biggest gro th

potential. hat instant consumption means is that !oke"!ola is trying to create

product accessibility for the consumer in an effort to increase their sales

volume ithout compensating the level of quality. 9ence !oke !ola is

available in retail outlets+ restaurants+ grocery stores+ or any other operation that

buys their products+ and in return sells or serves these products to consumers.

ending machines help accomplish this goal instant consumptionB because they

provide ice"cold !oke"!ola products to consumers in a variety of locations.

The advantage is that consumers end up spending more than they do ith the

canned drinks+ hich in the long run increases company profits.


12/62

Distribution

8mployees at all levels throughout the distribution system take an

extremely aggressive approach to producing and delivering !oke"!ola products in Breal timeB ithout Eeopardizing the quality. This shared dedication

to the company is hat has enabled !oke"!ola to saturate the national market

and begin its quest for global dominance. Internationally !oke"!ola !ompany

distributes #%7 beverage varieties in nearly 577 countries orld ide. !oke"

!ola o ns 7J of the international soft drink market. !oke"!ola orks

extremely hard to be one of the fe companies in the orld to successfully

reach literally billions of consumers. !oke"!ola,s international distribution is

the backbone to the global approach.

International distribution for !oke"!ola began hen they decided to

introduce !oke to !anada and Mexico in #$A$. ithin that saIne time period

!oke"!ola expanded across the *tlantic 3cean to 8urope. The man responsible

for this as !harles 9o ard !andler+ the oldest son of !oke Ccla's founder

*sa !andler. The !oke"!ola symp made an immediate impact in 8urope+

hich called for orders of five"gallon drums to Gennany+


13/62

'amaica+ and )anama. In #A7%+ the international bottling and distributing plants

ere established in )anama and !uba. Then in #A5%+ !oke"!ola,s international

distribution began to expand even more ith the help of a man named 8arnest

oodruff. 9e orked ith his associates and !oke"!ola on organizinginternational expansion by creating a -oreign &epartment. In#AH7+ the -oreign

&epartment became a subsidiary called The !oke"!ola 8xport !orporation

distributing in only a fe 8uropean countries and !anada. :y #AF7+ !oke"

!ola,s sales began to increase ith the expansion of bottlers in forty"five

international countries.

!oke"!ola is divided into four international geographic operating units

and one national operating unit. The four international geographic operating

groups are the Greater 8urope Group+ the 0atin *merica Group+ the Middle and

-ar 8ast Group+ and the *frica Group. The Greater 8urope Group operates in

estern 8urope and is also gro ing in the eastern parts of 8urope. The 0atin

*merica Group covers from TiEuana+ Mexico+ in the north to Tierra del -uego

in the south+ hich also includes operations in !entral and (outh *merica. The

*frican Group operates in countries that make up the sub"(aharan *frica. BThe

!ompany and its geographic operating units are led by a management team of

seasoned soft drink business veterans from


14/62

every corner of the globeB The last group is the Middle and -ar 8ast Group

operates in the most populated areas of the orld. This group manages the

countries of the )acific and Middle 8ast. These countries consist of 'apan+

*ustralia+ !hina and India.

Coca Cola in In ia

*fter a #%"years absence+ !oke"!ola returned to India in #AAH. !oke K

!ola India has made significant investments to build and continually improve

its business in India+ including ne production facilities+ aste ater treatment

plants+ distribution systems and marketing equipment. &uring the past decade+

the !oke"!ola system has invested more than C(4 # billion in India. In 577H+

!oke"!ola India pledged to invest a further C(4#77 million in its operations.

!oke"!ola business system directly employs approximately %+777 local people

in India and indirectly created employment for more than #5 +777 people in

related industries through our vast procurement+ supply and distribution

system. The !oke"!ola system in India comprises 51 holly"o ned company"

o ned bottling operations and another #1 franchisee"o ned bottling operations

* net ork of 5A contract packers also manufactures a range of products for the

!ompany.


15/62

!oke"!ola India has 7 per cent market share nationally in the soft drink

segment. &espite accumulating losses of s 5+7$% crore in its bottling

subsidiary+ 9industan !oke"!ola :everages+ in the last t o years+ the cola

giant has signaled its intention to stay the long haul in India. !oke"!ola India,s biggest gro th has come from ?inley+ its packaged ater brand. ?inley has a

current market share of H .# per cent+ nationally in this segment.


16/62

PRO!LEM DEFINITION


17/62

PRO!LEM DEFINITION

henever e think about summer e immediately recollect a product

Lsoft drinksB. 8ver since the economy has opened its gate for foreigners andforeign companies+ the ultimate beneficiary is a customer because he is the

person ho ultimately gets the qualitative products at the right place and at the

right time.

e have listened so many ords about ars but many of us are

atching the Bcola arB. In this aspect every company ants to overcome the

other company in terms of price+ product and availability+ among this

availability occupies a maEor role and the present study is aimed to exploring

the potential for the increased availability of coke products+ in various retail

outlets of !hennai. In this regard the study concentrates the potentiality for

further improvement of the product availability to suggest a suitable logistic

marketing strategy.


18/62

O!"ECTI#ES OF

T$E STUDY


19/62

O!"ECTI#ES OF T$E STUDY

O!"ECTI#ES

The (tudy assumes importance because of the increasing competition bet een !oke and )epsi. *s the !ompetitive activities of )epsi is threatening

!oke+ the study of (upply )atterns and the (elling )atterns of both )epsi and

!oke products becomes imminent to identify entry barrier for )epsi in !oke

outlets+ and strategic possibilities that can be exploited to induce gro th.

To identify the market share of coke.

To assess the status of !oke ith reference to )epsi

To explore ne areas of opportunities for !oke.

To identify the areas of eakness.


20/62

SCOPE OF T$E STUDY


21/62

SCOPE OF T$E STUDY

The scope of this study mainly deals ith the retailers of !oke+ )epsi

and both. The survey has been taken in the urban areas of !entral and 2orth!hennai. The study deals ith the market share of both the competitive

products prevailing in the market. The study concerns on all the flavour

products regarding their pack size and availability. (pecial care has been taken

on the status of (oda and ater in the market.


22/62

RESEARC$

MET$ODOLO%Y


23/62

RESEARC$ MET$ODOLO%Y

andom sampling procedure has been adopted for the research for

collecting the data. To ensure proper selection+ personal visits ere made todealers in the selected area. uestionnaire method of evaluation is adopted by

conducting personal intervie s. The selection of the area as based on the

proximity. To arrive at reliable estimation a properly spread out representation+

unbiased sample has been adopted. ?eeping this in mind+ a random sampling

procedure has been adopted for selection of dealers in the important markets in

2orth and !entral !hennai.


24/62

LIMITATIONS OF T$E STUDY

*s the client base hails from 2orth !hennai+ the (tudy is based on

samples limited to some parts of 2orth !hennai and some parts of !entral!hennai. The main limitations are time factor and resource factor+ hich made

us to restrict the sample size to 577. (ome of the respondents don,t sho proper

interest.


25/62

ANALYSIS AND

INTERPRETATION


26/62

DATA ANALYSIS AND INTERPRETATION

To get the data in the formulated ay+ percentage analysis is being used.

The tables and graphs are used to retrieve and represent the values in aneffective manner. Interpretations are used to describe the formulated data and

hat e infer from the data has been sho n in the inferences.


27/62

STATISTICAL TOOLS


28/62

STATISTICAL ANALYSIS

)8 !82T*G8

!9I"( C* 8 T8(T

!9* T( *2& &I*G *M( ?03M3G3 3 (MI 23 &"T8(T

8IG9T8& * 8 *G8

STATISTICAL ANALYSIS &

To fulfill the obEectives of the study both conventional and non

!onventional statistical technique ere used. The conventional statistical

techniques adopted in the present study are percentage analysis and !hi K

(quare Test.


29/62

C$I 'S(UARE TEST

(uppose e are given a set of observed frequencies obtained under some

experiment and e ant to test if the experimental results support a particular

hypothesis or theory. ?arl )earson developed a test for testing the significanceof discrepancy bet een values and the theoretical values obtained under some

theory or hypothesis. This test is kno n as 5 test of goodness of fit. ?arl)earson proved that the statistic.

DEFINITION

0iterally+ an attribute is a quality of characteristic. 8xamples of

attributes of drinking+ blindness+ honesty+ etc

*n attribute may be marketed by its presence ;position< or absence in a

number of a given population.

5N;3"8< 5 /8 here

3 N 3bserved frequency

8 N 8xpected frequency 5 is used to test hether the differences bet een observed and expectedfrequencies are significant.

2ote = if the data is given in series of OnP numbers then

&egree of freedom N n"#


30/62

0et us consider t o attributes * and :. * is divided into t o classes and : is

divided into t o classes. The various cell frequencies can be expressed in the

follo ing table kno n as 5 x Q contingency table.

* a b

: c d

* a aRb

! d cRd

aRb bRd 2

The expected frequencies are given by

8 ;a< N ;aRc< ;aRb< 8 ;a< N ;bRd< ;aRb

< 6?:>6 @,st Ran1

6> x H R5; x 5 R ?3

(ualit2

Marketing COKE

Documents