PROJECT Coca-Cola Ritesh

8/6/2019 PROJECT Coca-Cola Ritesh

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Project Report

A RESEARCH PROJECT REPORT

ONSALES PROMOTION OF SOFT DRINKS

WITH SPECIAL REFERENCE TO

HINDUSTAN COCA-COLA BEVERAGES PVT. LTD

FOR A report submitted to Accurate Institute of Management and Technology,

Greater Noida, as a mandatory part of PGDM curriculum

Submitted to: Submitted By:PGP CELLAIMT,GREATER NOIDA

RITESH KUMAR RAIROLL NO. :-DM10137BATCH :- 2010-2012

Accurate Institute of Management and Technology49, Knowledge Park-III, Greater Noida-201306.

EMAIL:- [email protected] .


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C E T CA TE

Thi i to cer ti that the pro ject repor t titled SALE PROMO T ON OF SOF T DRINK S(COCA CO L A) subm itted to Accura te Ins titute Of Managemen t andTechno logy, Grea ter No ida by RI TE SH KUMAR RAI in par tial fulf illmen t of therequ iremen t for the award of Pos t Gradua te Di ploma in Managemen t, i e., PGD M is anor iginal work carr ied ou t by the be low men tioned s tuden t under the gu idance andsuperv ision of the be low men tioned gu ides/superv isors. Th is work has no t been subm ittedanywhere e lse for any o ther degree/d i ploma under my s igna ture. The or iginal work wascarr ied ou t dur ing 01-05-2011 to 15-07-2011 i COCA COLA.

Signa ture of the studen t: _________________________

Name of the studen t: ____________________________

Dated: ________________________________________

Signa ture of the Indus try Gu ide: ________________________________

Name of the Indus try Gu ide: ___________________________________

Des igna tion of the Indus try Gu ide: ______________________________

E-ma il Address : _____________________________________________

Mailing Address : ____________________________________________

Dated: _____________________ Sea l/Stamp of the

Organ ization

Signa ture of the facu lty superv isor : __________________________

Name of the facu lty superv isor : _____________________________

Dated: ____________________

Da te : ............................


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Pro ject R epor t

ACKNOW LE DG EM ENT

I would like to take this opportunity to express our sincere gratitude to all the people who have directly and indirectly aided our research and extended their full

support to our visit to their company.

We would also like to thank Mrs Neelam sheol i ah our faculty, AIMT, Greater noida

for his support and help anytime I approached him. His advice and support made all the

difference to my work and gave it the form it has.

RI TE SH KUMAR RAIRO LL NO. :- DM10137BAT C H :- (2010-2011)


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DE C L ARA T ION

I R ITESH KUMA R R AI hereby dec lare that the research workpresen ted in the

research based pro ject repor t entitled SALE PROMO T ION OF SOF T

DRINK S( COCA CO L A) for the par tial fulf illmen t for the award of the

degree of Pos t gradua te di ploma in managemen t from AI MT, Grea ter no ida

is based on my research work.

The pro ject repor t embod ies the resu lt of or iginal work and s tudies

carr ied ou t by me and the con tent of the pro ject do no t from the bas is f ior the

award of any o ther degree to me or to anybody e lse.

Date :

R ITESH KU MAR R AIR oll No. :-DM 7


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CON TE NT S

Guide Certificate Acknowledgement P reface

TOPIC Page No.

Chapter - 1 Introduct ion to the Study 01 - 05

(a) Ob jective of the Study

(b) Scope of the Study(c) Signif icance of the Study(d) Methodo logy to be used(e) Limitation of the Study

Chapter 2 Introduct ion of the Organ izat ion 06 - 18

(a) H istory of the Organ ization(b) Marke t Share of the Organ ization

(c) Compe titors of the organ ization(d) Produc t Prof ile(d) Organ izationa l Structure

Chapter 3 A Theoret ica l Aspect of Sa les Promot ion 19 - 32

Chapter 4 Pract ica l Aspect of Sa les Promot ion

Chapter - 5 Data Ana lysis and Interpretat ion 32 - 43

Chapter - 6 Conc lus ion and Suggest ions 44 - 49

Questionnaire Bibliography


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Project Report

Chapter - 1

Introduction to the Study

a) Objective of the Study

b) Scope of the Study

c) Significance of the Study

d) Methodology to be used

e) Limitation of the Study


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Pro ject R epor t

IN T RODUC T ION OF T H E ST UDY

This chap ter dea ls w ith the introduc tory aspec t of the study. The s tudy of Sa les

Promo tion is the mos t impor tant par t of the marke ting managemen t. Entire

marke ting procedure revo lves around the sa les promo tion ac tivities.

In the modern era of compe tition, the bus iness execu tives and educa tiona lists have

given emphas is to the ph ilosophy, that the marke t shou ld be consumer or iented

with the v iew of chang ing a ttitude of the consumer and env ironmen t. The

compe titive marke ting ac tivities shou ld no t be mere ly w ith the ob jective of themax imization of prof it and sa les vo lume whereas it shou ld be w ith pr ime ob jective

of max imization of consumers' sa tisfaction.

In the case of Beverages industr ies, mos tly consumer of sof t dr inks be long to

educa ted and max imum be long to the m iddle classes, so their views keep very

much impor tance in the case of sof t dr inks marke t.

It is the consumer, who dec ides that wha t type of produc t shou ld be produced and

wha t more spec ialties are essen tial. Every momen t a consumer buys a commod ity,

he is in fac t voting for the con tinuous produc tion of that commod ity. I t is his tasted

preferences, wh ich is revea led by h is way of spend ing money that inf luence and

regu late the manufac ture's po licies of produc tion.

Every producer, if he wan ts to be successfu l in his en terpr ise, has to study the

wan ts, needs, taste and preferences of the consumers a t optimum cos t.

Sales promo tion is the process of persuad ing a po tential customer to buy the

produc t. It can be par t of the persona l selling process. The ma in methods of sa les

promo tion are :


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Pro ject R epor t

Money off coupons customers rece ive coupons, or cu t coupons ou t of

newspapers or a produc ts packag ing that enab les them to buy the produc t next time

at a reduced pr ice.

Compet it ions buying the produc t will allow the cus tomer to take par t in a

chance to w in a pr ize (e.g. Coca Co la r ing pu lls).

Discount vouchers a voucher ( like a money off coupon).

Free g ifts a free produc t when buy ano ther produc t.

Po int of sa les mater ia ls e.g. pos ters, d isplay s tands ways of presen ting the produc t in its bes t way or show the cus tomer that the produc t is there.

Loya lty cards e.g. Nectar and A ir Miles; where cus tomers earn po ints for

buying cer tain goods or shopp ing a t cer tain re tailers that can later be exchanged

for money, goods or o ther offers.

Loya lty cards have recen tly become an impor tant form of sa les promo tion. Theyencourage the cus tomer to re turn to the re tailer by g iving them d iscoun ts based on

the spend ing from a prev ious v isit.

Loya lty cards can offse t the d iscoun ts they offer by mak ing more sa les and

persuad ing the cus tomer to come back. They a lso prov ide informa tion abou t the

shopp ing hab its of cus tomers where do they shop, when and wha t do they buy?

This is very va luab le marke ting research and can be used in the p lann ing process

for new and ex isting produc ts.


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Pro ject R epor t

(A) O B E C TIV E OF T H E STUDY

The ob ject of research is to discover answers to ques tions through app lication of

scientif ic procedure. The ma in a im of research is to f ind ou t the truth, wh ich has

not been d iscovered as ye t. Though each research s tudy has its own spec if ic

purpose. A study w ithout ob jectives and w ithout conc lusion w ill be mere ly

was tage of resources and time. So we may think abou t research ob jectives as

follow ing d ifferen t points.

(1) The purpose of this study is to fulf ill par tially the requ iremen t of Pos t

Gradua te D i ploma in Managemen t Curr iculum.

(2) Th is study sugges ts necessary and requ ired measures for the improvemen t

in the marke ting ac tivities.

(3) The purpose of this study is to exp lore the marke t and to ma intain the

desired qua lity leve l.

(4) The ob jective of this s tudy is to deve lop sound interpersona l re lation to ge t

max imum ou t put between the consumer and producer.

(5) To know consumers expec tation w ith coca-co la.

(6) To know wha t is the marke t potential of coca-co la in compar ison to other

compe titors.(7) To know fac tors affec ting the sa le of coca-co la.

(8) To know the mo tivationa l leve l of dea lers of coca-co la.

(9) To ana lyze when and wh ich type of sa les promo tional schemes w ill

increase the sa le vo lume of coca-co la.

(10) To br ing ou t the weaknesses and the prob lems of coca-co la. Those are be ing

faced by it.

(11) The ob jective of this study is to top the po tential of new consumers and probab ly to sugges t measures for promo ting the sa les vo lume of coca-co la.

.


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Pro ject R epor t

(B) SCOP E OF T H E ST UDY

This study was done under H industan Beverage Pv t. Ltd. Pa tna. The graph ica l

scope of my survey was limited to Pa tna town where by d ifferen t places like

res idential colonies, marke t places are v isited and consumers of sof t dr inks are

interviewed.

This study a ims a t determ ining the compara tive preference of consumers for a

par ticular f lavor and par ticular brand be tween two co las and the reason beh ind

their preference.

The survey covers a w ide range of ac tivities and the fac tors, wh ich inf luence a

consumer for a cer tain sof t dr ink. I t covers a s tudy on consump tion trend in respec t

to their income, profess ion, p lace of consump tion and frequency of consump tion.

The samp le of 200 responden ts compr ising of ma le and fema le was taken to

represen t popu lation of Pa tna town. Quan tities and qua litative assessmen t of the

consumer demand for spec if ic sof t dr ink and f lavor has been made.


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(C) SIGNIFICANC E OF T H E ST UDYThe bus iness wor ld today is a wor ld of compe tition. A bus iness canno t surv ive if

its produc ts do no t sell in the marke t. Thus, a ll marke ting ac tivities are under taken

to increase sa les. Producers may spend a lot on adver tising and persona l selling.Still the produc t may no t sell. So incen tives need to be offered to a ttract customers

to buy the produc t. Thus, sa les promo tion is impor tant to increase the sa le of any

produc t. Let us d iscuss the impor tance of sa les promo tion from the po int of v iew

of manufac turers and consumers.

F rom t he po int of v i ew of ma n fac t rers

Sales promo tion is impor tant for manufac turers because

i. it hel ps to increase sa les in a compe titive marke t and thus, increases prof its;

ii. it hel ps to introduce new produc ts in the marke t by draw ing the a ttention of

potential customers;

iii. when a new produc t is introduced or there is a change of fash ion or taste of

consumers, ex isting s tocks can be qu ick ly disposed off;

iv. it stabiliz es sa les vo lume by keep ing its cus tomers w ith them. In the age of

compe tition it is qu ite much poss i ble that a cus tomer may change h is/her

mind and try o ther brands. Var ious incen tives under sa les promo tion

schemes he l p to retain the cus tomers

F rom t he po int of v i ew of co n sumers

Sales promo tion is impor tant for consumers because

i. the consumer ge ts the produc t at a cheaper ra te;

ii. it gives f inanc ial benef it to the cus tomers by way of prov iding pr izes and

send ing them to visit differen t places;

iii. the consumer ge ts all informa tion abou t the qua lity, fea tures and uses of

differen t produc ts;iv. cer tain schemes like money back offer crea tes conf idence in the m ind of

customers abou t the qua lity of goods; and

v. it hel ps to ra ise the s tandard of living of peop le. By exchang ing their o ld

items they can use latest items ava ilable in the marke t. Use of such goods

improves their image in soc iety.


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(D) M ET H ODO L OGY T O BE USE D

Dur ing the en tire s tudy fo llow ing me thods were fo llowed wh ich were found to be

mos t effec tive :-

i) Persona l Discuss ion :-

A lot of informa tion on the sub ject, wh ich were we ll known to the d ifferen t

depar tments and branches of the company, were preva lent. Academ ic wen t

to these dep ts. And branches together, these informa tion from their

respec tive heads.

ii) Documentary Observat ions :-

Secondary sources like books, journa ls pub lished and unpub lished ma ter ials

from d ifferen t depar tments of the company were consu lted.

iii) F ield Observat ion :-

Dur ing the training per iod the investigator v isited Pa tna marke t being sen t

by HCBL to observe how the marke ting opera tions were be ing performedthere.

The marke ting strategies and opera tions are c lose ly observed for a ll these

informa tion the inves tigators v isited re tailers dea lers and as we ll as consumers to

assess the presen t marke t situation of the produc t of HCBL.


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Pro ject R epor t

(D) L IMI T AT ION S OF T H E ST UDY

Eight weeks per iod is not suff icient to go through the en tire topic. For thoroughstudy it needs more time. I t's a lso d iff icult to make f ield s tudy or survey under the

scorch ing sun of June. Bu t the ma jor d iff iculty that was faced is the ex treme non

co-opera tion of the off icials abou t the da ta. They were very much re luctant about

this ma tter, wh ich made the s tudy more tiresome. Moreover, it is qu ite imposs i ble

to conduc t survey of each and every ou tlet in such a shor t span of time.

Overcom ing the odds, I tr ied my leve l best to synchron ize a ll the fac ts, rea lizations

and informa tion ga thered in an order ly way w ithin the course of this pro ject repor t.


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Project Report

Chapter - 2

Introduction of the organi ation(a) History of Organi ation

(b) Market Share of the Organi ation(c) Competitors of the Organi ation(d) Product Profile(e) Organi ational structure


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IN T RODUC T ION OF T H E ORGANIZA T ION

On Augus t 20, 2003 San jiv Gup ta, Pres ident and CEO of Coca-Co la Ind ia, sa t in

his off ice con temp lating the even ts of the last two weeks and deba ting h is nex t

move. Sa les had dropped by 30-40% in on ly two weeks on the hee ls of a 75% f ive-

year grow th tra jectory and 25-30% year- to-date grow th. Many lead ing c lubs,

retailers, res tauran ts, and co llege campuses across the coun try had s topped se lling

Coca-Co la and on ly six weeks into his new ro le as CEO, Gup ta was embro iled in a

cr isis that threa tened the momen tum ga ined from a h ighly successfu l two-year

marke ting campa ign that had g iven Coca-Co la marke t leadersh i p over Peps i.

On Augus t 5th, The Cen ter for Sc ience and Env ironmen t (CSE), an ac tivist group

in Ind ia focused on env ironmen tal sustainab ility issues (spec if ically the effec ts of

industr ialization and econom ic grow th) issued a press re lease s tating: "12 ma jor

cold dr ink brands so ld in and around De lhi contain a dead ly cock tail of pes ticide

res idues" (See Exh i bit 1). Accord ing to tests conduc ted by the Po llution

Monitor ing Labora tory (P ML) of the CSE from Apr il to Augus t, three samp les of

twelve Peps iCo and Coca-Co la brands from across the c ity were found to con tain

pes ticide res idues surpass ing g loba l standards by 30-36 times including lindane,

DDT, ma lathion and ch lorpyr ifos (See Exh i bit 2). These four pes ticides were

known to cause cancer, damage to the nervous and reproduc tive sys tems, b ir th

defec ts, and severe d isrup tion of the immune sys tem.

In reac tion to this repor t, the Ind ian governmen t banned Coke and Peps i produc ts

in Par liamen t and s tate governmen ts launched independen t investigations, send ing

sof t dr ink samp les to labs for testing. The Coca-Co la Bo ttling Company (Coke)stock d i pped by f ive do llars on the New York S tock Exchange from $55 to $50 in

the s ix sess ions fo llow ing the Augus t 5 d isclosure, as d id shares of Coca-Co la

Enterpr ises (CCA).


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Peps i and Coca-Co la ca lled the CSE a llegations base less and ques tioned the

method of testing bu t the CSE c laimed it had fo llowed s tandard procedures

documen ted by the US Env ironmen tal Protect ion Agency including Gas

Chroma tography and Mass Spec trome try.

Peps is own tests conduc ted a t an independen t labora tory showed no de tectable

pes ticides and led Peps i to f ile a pe tition w ith the h igh cour t ques tioning the

cred i bilit y of the CSE s c laims wh ile Coke s Gup ta commen ted: The a llega tion is

ser ious and it has the po tential to tarnish the image of our brands in the coun try. If

this con tinues, we w ill cons ider lega l recourse.

Desp ite Coke and Peps is ear ly responses deny ing the va lidity of the CSE s c laims

and threa tening lega l action, a survey conduc ted in De lhi a few days af ter the CSE

announcemen t found that a ma jor ity of consumers be lieved the f indings were

correc t and agreed w ith par liamen ts move to ban the sa le of sof t dr inks. I t was

clear that the $1 b illion Ind ian sof t dr ink marke t was a t stake and Gup ta had to ac t.


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Pro ject R epor t

H istory of the Organ izat ion

T he Early Days

Coca-Co la was crea ted in 1886 by John Pember ton, a pharmac ist in Atlanta,

Georg ia, who so ld the syrup m ixed w ith foun tain wa ter as a po tion for men tal and

phys ical disorders. The formu la changed hands three more times before Asa D.

Cand ler added carbona tion and by 2003, Coca-Co la was the wor lds larges t

manufac turer, marke ter, and d istr i butor of nona lcoho lic beverage concen trates and

syrups, w ith more than 400 w idely recogn ized beverage brands in its por tfolio.

With the bubb les mak ing the d ifference, Coca-Co la was reg istered as a trademark

in 1887 and by 1895, was be ing so ld in every s tate and terr itory in the Un ited

States. In 1899, it franch ised its bo ttling opera tions in the U.S., grow ing qu ick ly to

reach 3 70 franch isees by 1910.

Headquar tered in A tlanta w ith divisions and loca l opera tions in over 200 coun tr ies

wor ldw ide, Coca-Co la genera ted more than 70% of its income ou tside the Un ited

States by 2003.

I nt er n a ti onal expa n si on

Coke s f irst interna tional bottling p lants opened in 1906 in Canada, Cuba, and

Panama. By the end of the 1920 s Coca-Co la was bo ttled in twen ty-seven

countr ies throughou t the wor ld and ava ilable in f if ty-one more. In sp ite of this

reach, vo lume was low, qua lity incons istent, and effec tive adver tising a cha llenge

with language, cu lture, and governmen t regu lation a ll serv ing as barr iers. Former

CEO R ober t Woodruff s insistence that Coca-Co la wou ldnt suffer the s tigma of being an intrus ive Amer ican produc t, and instead wou ld use loca l bottles, caps,

mach inery, trucks, and personne l contr i buted to Coke s cha llenges as we ll with a

lack of s tandard processes and training degrad ing qua lity.


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Pro ject R epor t

Coca-Co la con tinued work ing for over 80 years on Woodruff s goa l: to make Coke

ava ilable wherever and whenever consumers wan ted it, in arms reach of des ire.

The Second Wor ld War proved to be the stimulus Coca-Co la needed to build

effec tive capab ilities around the wor ld and ach ieve dom inant globa l marke t share.

Woodruff s pa tr iotic comm itment that every man in un iform ge ts a bo ttle of

Coca-Co la for f ive cen ts, wherever he is and a t wha tever cos t to our company

was more than just grea t public re lations. As a resu lt of Coke s status as a m ilitary

supp lier, Coca-Co la was exemp t from sugar ra tioning and a lso rece ived

governmen t subs idies to build bo ttling p lants around the wor ld to serve WWII

troops.

T ur n of t he Ce nt ury Grow t h Impera ti ve

The 1990 s brough t a slowdown in sa les grow th for the Carbona ted Sof t Dr ink

(CSD) indus try in the Un ited S tates, ach ieving on ly 0.2% grow th by 2000 ( just

under 10 b illion cases) in con trast to the 5-7% annua l grow th exper ienced dur ing

the 1980 s. Wh ile per cap ita consump tion throughou t the wor ld was a frac tion of

the Un ited S tates, ma jor beverage compan ies c lear ly had to look e lsewhere for the

grow th their shareho lders demanded. The looming oppor tunity for twen ty -f irst

century was in the wor lds deve loping marke ts w ith their rap idly grow ing m iddle

class popu lations.

T he Worlds Mos t Powerful Bra nd

Interbrand s G loba l Brand Scorecard for 2003 ranked Coca-Co la the #1 Brand in

the Wor ld and es timated its brand va lue a t $70.45 b illion. The rank ings

methodo logy de term ined a brand s va luation on the bas is of how much it was

likely to earn in the fu ture, d istilling the percen tage of revenues that cou ld be

cred ited to the brand, and assess ing the brand s streng th to determine the r isk of

future earn ings forecas ts. Cons iderations included marke t leadersh i p, stabilit y, and

globa l reach, incorpora ting its ab ilit y to cross bo th geograph ical and cu ltura l

borders.


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Pro ject R epor t

From the beg inning, Coke unders tood the impor tance of brand ing and the crea tion

of a d istinct persona lity. I ts ca tchy, we ll-liked s logans (I ts the rea l thing (1942,

1969), Th ings go be tter w ith Coke (1963), Coke is it (1982), Can t beat the

Fee ling (198 7), and a 1992 re turn to Can t beat the rea l thing) linked that

persona lity to the core va lues of each genera tion and es tablished Coke as the

authentic, re levant, and trusted refreshmen t of cho ice across the decades and

around the g lobe.

Ind ian H istory

India is home to one of the mos t anc ient cultures in the wor ld da ting back over

5000 years. A t the beg inning of the twen ty-f irst century, twenty-six d ifferen t languages were spoken across Ind ia, 30% of the popu lation knew Eng lish, and

grea ter than 40% were illit erate. At this time, the na tion was in the m idst of grea t

trans ition and the d ichotomy be tween the o ld Ind ia and the new was s tark.

R emnan ts of the cas te sys tem ex isted a longs ide the wor lds top eng ineer ing

schoo ls and grow ing me tropo lises as the h istor ically agr icultura l economy sh if ted

into the serv ices sec tor. In the process, Ind ia had crea ted the wor lds larges t middle

class, second on ly to Ch ina.

A Br itish co lony s ince 1769 when the Eas t India Company ga ined con trol of a ll

European trade in the na tion, Ind ia ga ined its independence in 1947 under

Mahatma Ghand i and h is pr inci ples of non-v iolence and se lf-re liance. In the

decades that followed, se lf-re liance was taken to the ex treme as many Ind ians

believed that econom ic independence was necessary to be truly independen t. As a

resu lt, the economy was increas ingly regu lated and many sec tors were res tr icted to

the pub lic sec tor. Th is movemen t reached its peak in 1977 when the Jan ta par tygovernmen t came to power and Coca-Co la was thrown ou t of the coun try. In 1991,

the f irst genera tion of econom ic reforms was introduced and li bera lization began.


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Pro ject R epor t

Coke in I nd i a

Coca-Co la was the lead ing sof t dr ink brand in Ind ia until 1977 when it lef t rather

than revea l its formu la to the governmen t and reduce its equ ity stake as requ ired

under the Fore ign Exchange R egu lation Ac t (FE R A) wh ich governed the

opera tions of fore ign compan ies in Ind ia. Af ter a 16-year absence, Coca-Co la

returned to Ind ia in 1993, cemen ting its presence w ith a dea l that gave Coca-Co la

ownersh i p of the na tion's top sof t -dr ink brands and bo ttling ne twork. Coke s

acqu isition of loca l popu lar Ind ian brands including Thums Up ( the mos t trusted

brand in Ind ia), L imca, Maaza, C itra and Go ld Spo t prov ided no t only phys ical

manufac tur ing, bo ttling, and d istr i bution asse ts but also strong consumer

preference. Th is comb ination of loca l and g loba l brands enab led Coca-Co la toexploit the benef its of g lobal brand ing and g loba l trends in tastes wh ile also

tapping into traditiona l domes tic marke ts.

Lead ing Ind ian brands joined the Company's interna tiona l family of brands,

including CocaCo la, d iet Coke, Spr ite and Fan ta, p lus the Schweppes produc t

range. In 2000, the company launched the K inley wa ter brand and in 2001, Shock

energy dr ink and the powdered concen trate Sunf ill hit the marke t.

From 1993 to 2003, Coca-Co la invested more than US$1 b illion in Ind ia, mak ing

it one of the coun trys top interna tiona l inves tors. By 2003, Coca-Co la Ind ia had

won the pres tigious Woodruf Cup from among 22 d ivisions of the Company based

on three broad parame ters of vo lume, prof itabilit y, and qua lity. Coca-Co la Ind ia

ach ieved 39% vo lume grow th in 2002 wh ile the industry grew 23% na tiona lly and

the Company reached breakeven prof itabilit y in the reg ion for the f irst time.

Encouraged by its 2002 performance, Coca-Co la Ind ia announced p lans to doub le

its capac ity at an investment of $125 m illion (R s. 750 crore) be tween Sep tember

2002 and March 2003. Coca-Co la Ind ia produced its beverages w ith 7,000 loca l

emp loyees a t its twen ty-seven who lly-owned bo ttling opera tions supp lemen ted by

seven teen franch isee-owned bo ttling opera tions and a ne twork of twenty-nine


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Pro ject R epor t

contract-packers to manufac ture a range of produc ts for the company. The

comp lete manufac tur ing process had a documen ted qua lity con trol and assurance

program including over 400 tests performed throughou t the process.

The comp lexity of the consumer sof t dr ink marke t demanded a d istr i bution processto suppor t 700,000 re tail outlets serv iced by a f leet that includes 10- ton trucks,

open-bay three whee lers, and trademarked tr icycles and pushcar ts that were used

to nav igate the narrow a lleyways of the c ities.

In add ition to its own emp loyees, Coke indirec tly crea ted emp loymen t for ano ther

125,000 Ind ians through its procuremen t, supp ly, and d istr i bution ne tworks. San jiv

Gupta, Pres ident and CEO of Coca-Co la Ind ia, joined Coke in 1997 as V ice

Pres ident, Marke ting and was instrumen tal to the company s success in deve loping

a brand re levant to the Ind ian consumer and in tapping Ind ias vas t rura l marke t

potential. Fo llow ing h is marke ting respons i bilities, Gup ta served as Head of

Opera tions for Company-owned bo ttling opera tions and then as Depu ty Pres ident.

Seen as the dr iving force beh ind recen t successfu l forays into packaged dr ink ing

water, powdered dr inks, and ready- to-serve tea and coffee, Gup ta and h is

marke ting prowess were cr itical to the con tinued grow th of the Company.

"Jo Chaho Ho Jaye, Coca Co la En joy". The wor ld has been en joying for a ll 115

years now, bu t ever wonder abou t how it all star ted? Coke began as a humb le

produc t concen trate by pharmac ist John S tyth Pember ton on May 8, 1886 in

Atlanta, Georg ia. I t was no thing move pre tentious than a carame l colored syrup,

brewed in a three-begged brass ke ttle in his backyard. Pember ton f irst distr i buted

the produc t in a jug down the s treet to Jacob Pharmacy, a t that time the larges t

drug s tore in Atlanta. Tha t very day, the new produc t made its debu t as a sodafountain dr ink for f ive cen ts a g lass. When carbona ted m ixed w ith the syrup, the

resu lt was s tupendous ly refresh ing. Pember ton and h is book-keeper par tner Frank

M. R obinson knew they had a w inner on their hand.


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Pro ject R epor t

But the ques tion wha t to name their produc t vexed the duo for a wh ile. In the end,

it was the sheer p leasure of ca lligraphy the letter C, more than any thing e lse, that

made the two se ttle for "Coca Co la" R obinson du ly des igned the now famous

trademark in a un ique scr i pt, and they sa t back and wa ited for the moo lah to pour

in.

He began adver tising by hang ing a s imple o ilcloth sign on the pharmacy awn ing

encouraged passer-by to dr ink Coca co la, and on May 29, 1886, the f irst

adver tisemen t appeared in the newspaper, "The A tlanta Journa l", pronounced Coca

cola "De licious and R efresh ing". Now days this theme has go t more ber th.

But the crea tor of the beverage-and the brand never fu lly rea lized its po tential; inneed of funds, he so ld por tions of h is interes t in the ven ture, Sa les dur ing 1886

averaged a modes t nine dr inks a day. Fo llow ing h is dea th in 1888, Asa G. Cand ler,

a drugg ist and a bus inessman, purchased a ll of Pember ton's rema ining r ights to the

produc ts. By 1890, Coca co la w ith U. S. Pa tent Off ice on January 31, 1893 and has

been renewed per iodically.

In 1894, the company opened its f irst syrup manufac tur ing p lant out side A tlanta inDa llas, Texas. The fo llow ing year p lants opened in Ch icago and Los Ange les.

Three years af ter the company's incorpora tion, Cand ler announced in the annua l

repor t "Coca Co la is now drunk in every s tate and terr itory in the U S." In 1894,

merchan t Joseph a. B iedeharn of V icksburg, Miss iss i ppi, became the f irst bottler

of Coca co la, when he installed bo ttling mach inery in his candy s tore. In 1899,

large sca le bo ttling began when Ben jamin F. Thomas and Joseph B. wh itehead of

Chattanooga, Tennessee, secured from Cand ler, for $1, exc lusive r ights to bottle

and se lf Coca co la near ly everywhere in the U.S.

Cand ler aggress ively promo ted the beverage and the sa le increased man ifold under

his tutelage and when the company once aga in changed hands in 1919- to Atlanta

banker Earnes t Woodruff and an investor group, it was wor th $25 m illion.


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Pro ject R epor t

Four years hence Woodruff's 33 year o ld son, R ober t W. Woodruff, was e lected

pres ident of the company, a pos ition he re tained for over s ix decades dur ing, wh ich

he took the bus iness to unr ivalled he ight of commerc ial success, and made Coke

an institution the wor ld over. Inc identally the word Coke was f irst coined as late as

1941, a fu ll 55 years af ter Pember ton made h is backyard brew.

In 1960 the Coca Co la Company purchased Minute Maid Corpora tion, add ing

frozen c itrus juice concen trates and a ides a long w ith the trademark Minute Maid

and H ic, into the company's beverage line.

In 196 7, "Duncan foods" a coffee producer was acqu ired by the company andCoca Co la Company's food d ivision was formed wh ich was known as the Minute

Maid Company. From 19 77 to 1983 , it produced very produc t wine and marke ted

wine in the Un ited S tates. In 1982 it entered the en ter tainmen t business w ith the

acqu isition of Co lumb ia p ictures. In 1989, formed a new subs idiary, Coca Co la

R efreshmen t System.

In 1991 the company joined hands w ith Nes tle Sou th Afr ica to manufac ture,marke t and d istr i bute tea and coffee beverage under the trademark Nes tia and

Nescafe respec tively. Th is joint venture was es tablished on a wor ldw ide bas is w ith

the excep tion of Japan.

The company and its network of bo ttlers compr ise the mos t sophisticated and

pervas ive produc tion and d istr i bution sys tem in the wor ld. I t has a sys tem of

dedicated peop le work ing long and hard to se ll Coca Co la d iet Coke, Spr ite, Fan ta

and o ther produc ts. I t is an Aus tra lian fa ther and son term who dr ives 7000 kms

each week v ia "Down Under" w ilderness. I t is a 73 year o ld Fili pino who se lls co ld

Coca Co la in h is town's marke t everyday refus ing to leave un til he has so ld at least

50 cases.


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Pro ject R epor t

This un ique wor ldwide sys tem has made the company the wor ld's prem ier sof t

dr ink en terpr ise. The company se lls near ly ha lf of a ll sof t dr inks consumed round

the wor ld. I t has a wonderfu l history to bu ilt an exc iting fu ture wh ich w ill continue

to grow.

From Bos ton to Be ijing, from De troit to De lhi, from Por tland to Pune and from

Montrea l to Moscow, Coca Co la more than o ther produc t has brough t pleasure to

thirsty consumers around the g lobe. For more than a cen tury, Coca Co la has

created a spec ial momen t of pleasure for hundreds of m illions of peop le everyday.


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Pro ject R epor t

Marke t Share of t he Orga niz a ti on

Coca-Co la is a lead ing p layer in the Ind ian beverage marke t with a 60 per cen t

share in the carbona ted sof t dr inks segmen t, 36 per cen t share in fru it dr inks

segmen t and 33 per cen t share in the packaged wa ter segmen t.

In 2004, Coca-Co la so ld 7 billion packs of its brands to more than 230 m illion

consumers across 4, 700 towns and 1 75,000 v illages. The company has doub led its

volumes and trebled its prof its between 2001 and 2004.

Coca-Co la con tinues to re-aff irm its comm itment to Ind ia through ac tive

Citiz ensh i p Effor ts. A ll its p lants in Ind ia par tner w ith loca l NGOs to alleviate

loca l commun ity issues in numerous sma ll ways. I t boas ts of impeccab le

creden tials on qua lity.

Coca-Co la has succeeded in sp ite of an ex treme ly pr ice-sens itive consumer w ith

entrenched beverage consump tion hab its tea, n imbu-paan i (lemonade) and a

fragmen ted and geograph ically d ispersed re tail marke t, and a h igh tax

environmen t.


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Pro ject R epor t

Compe tit ors of t he Orga niz a ti on

Coca-co la , is a sof t dr ink produced and manufac tured by Cocaco la beverages pv t.

ltd. There have been many coke var iants produced over the years, including D iet Coke, ThumsUp, Spr ite, Maaza, L imca, Fan ta etc.

The neares t compe titor of Cocaco la is Peps i. Coca-co la produce Coca-Co la,

Thums up, Spr ite, Maaza, e tc. I t covers broad marke t of a ll over Ind ia. The ma in

compe titor of Coca-co la in Pa tna marke t is Peps i, Amu l Coo l, Amu l Coo l Coffee,

Sudha Lass i, N imbu Pan i, Matka Ku lf i and S ikan ja.. These produc ts a lso covers

some marke t or area of Pa tna.

In Middle c lass fam ily demands N imbu Pan i, Matka Ku lf i & S ikan ja is h igher than

Coke. Loca l Ice cream is a lso affec t the marke t of Peps i. In recen t year, loca l lass i,

Sikan ja or ice-cream manufac turer a lso affec t the sa le of Coca-co la produc ts.


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Project Report

Product Profile of the Organi ation

COCA COLA

Coca Cola is the world's favourite soft drinks as it rules the heat of

millions across the world. "Things go better with Coke ", "Real

Refresher ", " o Chaho Ho Jaye ", "Coca Cola Enjoy " and "Thanda

Matlab Coca Cola" are memorable and funky slogans attached with it.

Coca Cola also enjoys the status of being the first soft drink in the

world. The recent advertisement featuring Aamir Khan with slogan "Thanda

Matlab Coca Cola" which reflects friendly image is the most wanted advertisement

among the consumers due to the heart throb actor.

FANTA

The company also prefaced new soft drinks to satiate a

widening spectrum of tastes. Born in 1960 in Germany, the

Fanta family of flavoured soft drink has because the third

best selling brand in the world. It contains orange flavour

and recently launched Green Apple and Waterlemon

flavours. The latest slogan of Fants is "Bajao Masti ki Ghanti ".

SPRITE

Clear, crisp and refreshing that what, sprite was launched

recently in India. It has a straight forward, honest and direct

proposition that appeals to teens and young adults worldwide. It

respects their intelligence and ability to choose for themselvesand does not talk down to them sprite was preferred in 1961, it

is one of the top selling and fastest growing carbonated soft

drink in the world. The brand has shown double digit growth globally for the lst

four year. It crossed the one billion unit case make worldwide in 1994, a

significant achievement in terms of the si e of the brand.


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Project Report

Says Venketesh Kimi, senior Brand Manager, "Sprite is positioned as the cool

drink for teens and young adults that encourages them to be themselves, because of

its refreshingly, honest and irrelevant attitude. The slogan "Sprite bujaya only

pyass, baki sub bakbaas " is very favours among the teens.

Thums Up

India's Cola brand, Thums Up has a record countrywide volume

growth. Thums-Up is positioned as the strong testing carbonated

soft drink for today's young adult who place value on being self-

confident and have sense of adventure. Te tag line "Taste the

Thunder " reinforce it preferred taste among its tainted consumers

- says Sumanta Dutta, Brand Manager. This was a direct result of advertising

probation, new packaging and below the line support implemented for Thums Up

across India.

LIMCA

Widely known as "Take it easy " brand of Coca Cola India

Ltd. Is meant to refresh you when you feel frustrated by some

sort of problem. It has been launched to meet to need of consumers who want to stick to 'Nimbu-pani' taste, as it is a

low carbonated soft drink.

MAA ZA

(In tetra pack of 200 ml.) : The company

introduced pure mango flavour to satiate a

widening spectrum of tastes, in tetra pack of

200 ml in May 2000. Each crates consists of

2 packs.


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Project Report

KINLEY

(In 500 ml. & 1000ml) : Kinley is a high quality bottled water

processed with added minerals popular among adults who

seek a better quality of life and a healthy lifestyle.

MINUTE MAID PULPY ORANGE

Minute Maid Pulpy Orange tastes like Tropicana Orange, but

more natural and less acidic. The presence of pulpy orange sacs

in the beverage is an added delight to everyone, for sure. It is

healthy, refreshing and affordable. Minute Maid Pulpy Orange

will definitely be a hit to the public!

Minute Maid Pulpy Orange Drink - Orange Juice drink made from concentrate.

Minute Maid Nimbu Fresh Drink - Lemonade


30/67

Pro ject R epor t

Orga ni sa ti on S t ruc t ure

Hindustan Coca-Cola Beverage P rivate Limited

AR EA G ENE RA L MANAG E R

Finance Human R esources Sa les Produc tion

Ass t. Manger Ass t. (HR ) Execu tive (Adm.)

ASM ASM ASM ASM ASM

Sales Ex. Sa les Ex. Sa les Ex. Sa les Ex. Sa les Ex.

Sh i pping & Chem ica l Produc tionWarehous ing R oom Superv isor

Works


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Project Report

CHAPTER - 3

A Theoretical Aspect of Sales Promotion


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Pro ject R epor t

A T heoret ica l Aspect of Sa les Promot ion

Sales promo tion is the h ighly spec ialised func tion of marke ting d ivision of the

enterpr ise. Sa les is the life b lood of bus iness. The u ltimate goa l or produc tion is

sales of produc t. Indus tr ial revo lution and techn ical advancemen t have brough t a

revo lution no t only in the f ield of produc tion bu t also in the f ield of sa les

promo tion. Compe tition has increased the impor tance of sa les promo tion. Sa les

promo tion is bas ically effec tive commun ication w ith the cus tomers. I t is job of

marke ting peop le that he made ava ilable the produc t at the r ight at r ight place.

Sales promo tion is descr i bed by var ious au thor by var ious ways :-

Professor W illiam Stenton says that Sales promo tion is one wh ich include such

activities as se tting d isplay, ho lding trade shows and us ing exh i bition and us ing

samp les and prem ium.

Professor George W. H apk ins def ines sa les promo tion as an organ ised effor ts

applied to the se lling job to secure the grea test effec tiveness for adver tising and for

dea lers he l p.

Dr. Ph ilip Kot ler says that the sa les promo tion cons ists of w ide var iety of

promo tiona l tools des igned to stimulate ear lier and or s tranger marke t response.

They include tool for cus tomer promo tion such as samp le, trade, promo tion such

as incentive pr ice e tc.

Accord ing to Amer ican Market Assoc iat ion (AMA) sales promo tion includes

those ac tivities o ther than persona l selling effor t which are no t in the ord inary

routine. Thus sa les promo tion cons ists of ac tivities o ther than persona l

salesmansh i p.


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Pro ject R epor t

(1) IN T RODUC T ION

Sales Promo tion is essen tially a d irec t and immed iate inducemen t that adds and

extra va lue to the produc t, so that it promo tes the dea lers, d istr i butor or t ultimate

consumers to buy the produc t.

In recen t year, sa les promo tion ac tivities and techn iques have come to be regarded

as impor tant tactical dev ices to be used w ith as much care, p lann ing, crea tivity and

control as any o ther bus iness ac tivity.

It is strange that although some compan ies have crea ted sa les promo tion

depar tment, many compan ies do no t have a sa les promo tion manager and leave the job to the individua l produc t of brand managers to choose and organ ize their over

promo tions.

What has encourages compan ies to take a c loser a t sales promo tion techn iques and

measuremen t is the level of inf lation and compe tition. Compan ies now seem to be

using sa les promo tion more aggress ively to show cus tomers ways to money and

gain more va lue in the marke t place.

(2) What is Sa les Promot ion ?

Sales promo tion is an immed iate or de layed incentive to purchase or acqu ire,

either in cash or in k ind, usua lly dur ing a temporar ily or shor t -lived per iod of

activity, a produc t or serv ices.

Sales promo tion schemes are used by a large var iety of organ ization, including

manufac tures, d istr i butors, re tailers, trade assoc iations and non-prof it groups v iz,

churches and char ities.


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Pro ject R epor t

(3) The growth of sa les promot ion:

There are a number of spec if ic, fac tors, wh ich have con tr i buted to the grow th of

sales promo tion mos t par ticular ly over recen t year and in consumer marke ts.

I nt er n al fac t ors in clude :-(a) Promo tion has become much more accep table to top managemen t as an

effec tive way to stimulate sa les.

(b) More produc t managers are now qua lif ied to use sa les promo tion

techniques.

(c) Produc t Managers are under more pressure to obtain quick sa les response.

Ex t er n al fac t ors in clude :-(a) Brands have grea tly increased in number.

(b) Compe titors have become more promo tions m inded.

(c) Inf lations and recess ion made consumers more dea l or iented.

(d) Manufac tures are under grea ter pressure from the trade to offer dea ls.

(e) The be lief that adver tising eff iciency may have dec lined due to cos ts, med ia

clutter, Governmen t controls and then res tr ictions.

(4) Nature of Sa les Promot ion:-

Although sa les promo tion tools- Coupons, con tests, prem iums and the like are

highly diverse they have three d istinctive charac ter istics.

(i) Commun icat ion : - They ga in attention and usua lly prov ide informa tion

that may lead the consumer or the produc t.

(ii) Incent ive : - They incorpora te some concess ion, inducemen t or

contr i bution that gives va lue to the consumer.

(iii) Inv itat ion :- They include invitation to engage in the transac tion now.

Compan ies use sa les promo tion tools to crea te a s tronger and qu icker

response sa les promo tion can be used to drama tise produc t offers and to

boos t sagg ing sa les. Sa les promo tion effec ts are usua lly shor t run, however

and no t effec tive in building long-run (brand) preference.


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Pro ject R epor t

(5) Purpose of sa les promot ions:-

Sales promo tion tools very in their spec if ic ob jectives. A free samp le stimulates

consumer tr ial, wh ile a free managemen t adv isory serv ices cemen ts a long- term

relationsh i p w ith retailer.

Sales use incentive types promo tion to attract new tr ies, to reward loyal customer

and increase the purchase sa les of occas iona l uses. New tr ies are of three types-

uses of ano ther brand in the same ca tegory used in o ther ca tegor ies and frequen t

brand in the same ca tegory used in o ther ca tegor ies and frequen t brand sw itches.

Sales promo tion af ter a ttract the brand sw itchers because uses of o ther brands and

uses in o ther ca tegory hand ly notice or ac on a promo tion. Brand sw itches are pr imar ily look ing for low pr ice good va lue or permoursne t. Sa les promo tion are

unlikely to turn them in to loya l brand users. Sa les promo tions used in marke ts of

high brand s imilar ly produce a h igh sa les response in the shor t run bu t little

permanen t gain in marke t share. In marke t of brand d issimilar ity sa les promo tion

an af ter marke ts shares more permanen tly.

(6) Importance of sa les promot ion:-In a compe titive marke t, sa les promo tion comes handy to a marke ters, to so lve

severa l of h is shor t-tern bund les. Shor t term because, the impac t of sa les

promo tion measures are no t durab le and lasting like the resu lts attained through

adver tising and persona l selling sa les promo ting by and large in unders tood and

prac ticed as a ca talyst and a suppor ting fac ilit y to adver tising and persona l selling.

(7) H ow sa les Promot ion d iffers from Advert ising :-

Sales promo tion d iffers from adver tising in many ways :-

(i) Where as adver tising is mos tly an indirec t and sub tle approach towards

persuad ing consumers to buy a produc t, sa les promo tion is a d irec t and

almost open inducemen t consumer to immed iately try the produc t.


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Pro ject R epor t

(ii) Wh ile adver tising norma lly has long term ob jectives like bu ilding brands

awareness or bu ilding consumer loya lty or repos itioning brands, sa les

promo tion performs an immed iate task of increas ing curren t sales.

(iii) Wh ile adver tising he l ps sales by add ing some durab le and long- term va lue

to the produc t, sa les promo tion a ids se lling by tempora lity chang ing the

existing pr ice va lue re lationshi p of the produc t.

While con tinuing to use adver tising to bu ild long term pa tronage of the

consumers sa les promo tion w ill come hand ly to give the occas iona l spent

requ ired to boos t up the curren t sales.

Sales promo tion surveys a var iety of marke ting needs and con tents.

Marke ting men resor t to sa les promo ting to mee t severa l marke ting needs such as:-

For introduc ing new produc t.

For overcom ing a un ique compe titive s ituation.

For un load ing accumu lated inventory.

For ge tting new accoun ts.

For re tr ieving lost accoun ts.

As a suppor t and supp lemen t to the adver tisemen t effor t. As a suppor t and supp lemen t to the sa lesman's effor t.

For persuad ing sa lesmen to se ll the fu ll line of produc ts.

For persuad ing dea lers to buy more increase the s ize of the orders.

(8) Sett ing Object ive:-

There mus t always be a se t ob jective or targe t for open ing a sa les promo ting

campa ign. O therw ise there is abso lutely no f inanc ial or marke ting reason for

running one.

Sales promo tion ob jective are der ived from bas is marke ting commun ications

ob jective are der ived from more bas ic marke ting ob jectives deve loped for the

produc t. The spec if ic ob jectives se t for sa les promo tion w ill vary w ith the types of

marke t.


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Pro ject R epor t

( i) Con sumer :-

Ob jectives w ill include encourag ing more safe and purchases of longer s ized un its

by uses bu ilding trail by non-users, or a ttracting trail by other brand users.

Building and re taining brand loyalty is expens ive and deserves to have funds

invested in ac tivities des igned, a t the very least, to ma intain it and hopefu lly

improve it. W ith compe tition becom ing sma ller, the f ight for the purchaser's proud

depends in many cases on the ex tra va lue or benef its perce ived by buyer bes towed

on the produc t through the med ium of sa les promo tion.

( ii) Re t a i lers :- Ob jectives w ill include encourag ing the re tailers to stock new items or large

volume, he l ping off reason buy ing, s tock ing of re lated items, off se tting

compe titive promo tion, and ga ining en try in to new re tail outlets.

( iii) Sales force :-

Ob jectives include encourag ing suppor t of a new produc t or mode l, ge tting more

prospec ts and s timulating sa les in off seasons.

(9) Tools and techn iq ues of Sa les Promot ion :-

There are so many tools of sa les promo tion, some of wh ich are d iscussed be low :-

( i) POP/D i splay:- Po int of purchase (POP) promo tion is one of the mos t widely

used promo tiona l tools. I t is a lso some times referred to as po int of sa les

promo tion. W ith the pro lifera tion of brands, innova tive d isplays have become a

prerequ isite for success brands comp lete w ith each o ther for consumers a ttentions

mind has become the pr ime concern of marke ters. Hence, the impor tance of

POP/d isplays a lot.


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Pro ject R epor t

Var ious k inds of d isplays ma ter ials like pos ter, dang lers, s tickers, mob ile,

wobb lers and s treamers are used a t the re tail shop level to induce purchase. In the

modern con text of h igh intens ity, marke ting the re tailers are v ir tually f looded w ith

POP's by a ll manufac tures. If they are just dumped in a forsaken corner of the shop

the brand does no t get the intended sa les promo tiona l benef it from the POP's.

( ii) DEOMONS T RA T IONS :- Compan ies resor t to produc t demons tration for

sales promo tion, espec ially when they are com ing up w ith a new produc t. In Ind ia

in recen t year, severa l produc ts - low un it, pr ice, produc ts like beverages and

wash ing powders as we ll as h igh un it pr ice produc ts like wash ing mach ines

persona l compu ters and television have u tilised produc t demons tration as a tool of

sales promo tion.

(a) D EMON ST RA T ION S AT R ET AI L ST OR ES :-

Some times demons trations are organa ised a t retail by company sa lesman for the

benef it of re tailers as we ll as consumers.

(b) SC H OO L DEMON ST RA T ION S :-

When the produc t happens to be a cos tly one and a h i-tech one, compan ies arrange

schoo l of demons trations. In this case, consumers are invited (g iving pr ior intimation) to a par ticular p lace, say a hos tel, and demons trations are arranged. In

compu ters, severa l compan ies in Ind ia organ ise this type of demons tration.

(c) DOOR T O DOOR D EMON ST RA T ION S :-

Consumers produc t compan ies qu ite of ten resor t to house demons tration. I t is

cons idered a h ighly spec ialised f ield of sa les promo tion. Sa lesman emp loyed for

such demons trations are g iven spec ial training to hand le pecu liar s ituations

involved in this f ield.

(d) D EMON ST RA T ION T O K E Y PROFI LE :-

Some times, demons trations are organ ised for the benef it of key peop le and

inf luential persons. Journa list and o ther med ia men, commun ity leaders e tc. are

invited and the produc t is introduced to them.


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Demons tration is a good se lling techn ique, wh ich involves the co -opera tion of

sales represen tatives and pro tective consumer in the ac tual process of

demons tration of the produc t. Par tici pation of the consumer persuades h im to learn

more abou t the produc t and it serves as persuas ion for h im to try the produc t.

(iii) SAMP LE S :-

Samp les are offers of a free amoun t of a tr ial of produc t for consumers. The

samp les be de livered door to door, sen t in the ma il, p icked up in a s tore found

attached to ano ther produc t, or fea tured in an adver tising offer. Samp ling is the

mos t effec tive and mos t expens ive way to introduce anew produc t store found

attached to ano ther produc t or fea tured in an adver tising offer. Samp ling is themos t effec tive and non mos t expens ive way to introduce a new produc t.

(iv) COUPON S :-

Coupons are cer tif icates wh ich offer pr ice reduc tions to consumers for spec if ied

items. They are d istr i buted through newspaper and maga zine and adver tisemen ts,

or through the package of the merchand ise, or even by d irec t mail. Coupons

norma lly perform two spec if ic func tions for the manufac tures. F irstly, they en thusethe consumer to exp loit the barga in. Second ly, they survey as an inducemen t to the

channe l for s tock ing the item. The manufac turer thus succeeds in attracting

consumers as we ll as in promo ting the channe l to stock the merchand ise through

introduc ing coupons. They are usefu l for introduc ing a new produc t as we ll as for

introduc ing coupons. They are usefu l to introduc ing a new produc t as we ll for

straightening the sa le of an ex isting produc t.

(v) PR EMIUM :-

In the Ind ian marke t today, prem iums, free offers and pr ice-offers are ex tensively

used by manufac turers. Some times back, "Ar istocrat modled tugged introduced on

attractive sa les promo tion offer. I t also ran an a company in suppor t of the sa les

promo tion endeavor. Ar istocrate announced -


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Pro ject R epor t

"If you buy and Ar istocrat within the nex t week, you ge t a Ph illi ps 2 ba nd

trans istor wor th R s. 266/- free."

And the ad repea ted this message "I t's on ly for a week, s tar ting today." Su zuk i

Shogun b ike offered R ay-Ban Sung lass free as par t of its sa les promo tion. The

campa ign read - "Free R ay-Ban Sung lasses w ith Suzuk i Shogun the mos t powerfu l

bike of its k ind."

(vi) PRIC E - OFF :-

Hawk ins pressure cookers have come up w ith severa l sales promo tions scheme

dur ing the last few years. In one of these schemes. Hawk ins announced up to R s.,150/- off or a new Hawk ins in exchange for any o ld pressure cooker. Any the ad

spec if ied that the offer is opened on ly up to a par ticular da te.

(vii) GIF TS :-

Compan ies a lso d istr i bute g if ts to the peop le cus tomers dea lers and inf luential and

key peop le. These g if ts include pens, penc ils, ca lendars, d iar ies, table decora tion

etc. G if ts ce ll carry the company's name and logo. The g if ts are intended to crea tegoodw ill towards the company and indirec tly promo te the company's sa le interes t.

(viii) T RAD E FAIR S AND EX H IBIT ION S : -

Trade fa irs and exh i bitions are ex tens ively used sa les promo tion tools. They a lso

form one of the o ldes t prac tices in sa les promo tion. Trade fa irs and exh i bition

prov ide compan ies w ith the oppor tunities of introduc ing and d isplaying their

produc ts. Th is br ings company's produc ts and consumers in d irec t contact with

each o ther. "See ing is be lieving" is a concep t behind large-sca le exh i bitions.

(ix) CON SUM E R CON TE STS :-

Consumer con tests take a var iety of forms qu iz contests, Beau ty con tests, Scoo ter

and car ra llies lucky draw sugges ting a brand name, cover ing a s logan sugges tion a


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Pro ject R epor t

logo e tc. Wha tever he the type of con test f illing up the qu iz, wr iting f ive words

about the brand, or tak ing par t is a ra lly, the marke ter is to crea te, w idespread

action and news around the brand. To ge t the consumer interested in the brand

include h im to buy it is the cen tral in a ll consumer con tests.

(x) SPON SORING MAJOR NA T IONA L AND IN TE RNA T IONA L

E VE NT S:-

When ma jor na tional and interna tional place, compan ies assoc iated themse lves

with such even ts, spend ing a lot of money. The f ield of spor ts usua lly prov ides

max imum number of such even ts. Bus iness f irms e ither sponsor the even as a

who le, to take the lead ing ro le in spec if ic aspec ts assoc iated w ith the even ts.

Wa tch manufac tures take up the ro le off icial supp lies of sof t dr inks and fooditems. The intention is to rema in par t of the news crea ting even ts and reap the bes t

of sa les promo tiona l benef its from assoc iations. Such effor ts also from par t of

sales promo tion.

Liquor and tobacco compan ies dom inated the sponsorsh i p of the spor ts even ts. The

restr iction on adver tising for these produc ts lef t these compan ies w ith few avenues

for brand promo tion sponsorsh i p of spor ts re lated even ts were seen as a so lution tothis prob lem. In course of time, marke ting of o ther produc ts too star ted us ing

sponsorsh i p is a b ig way. Va zir su ltan Tobacco (VST) for years sponsored join up

Dow la cr icket tournamen t and the champ ionsh i p-the R an ji Trophy through its

cha irman cha llenge up. La ter ITC, Too s tar ted ac tive cr icke t sponsorsh i p w ith its

trophy. The 198 7 R eliance Wor ld Cup in cr icket became a ma jor even ts in sa les

promo tion.

The success of this programme tempted more and more compan ies to take up such

sponsorsh i p on a large sca le. MR F up to this time ac tive ma inly in mo tor ra llies -

"Organ ized the MR F cup in cr icket. Today, compan ies like ITC, PEPSI, JK

TYR E, SIGE R and AB Corp. are among the ma jor sponsors of na tiona l and

interna tiona l events.


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Pro ject R epor t

Winning the r ight to spouse are even t is just the beg inning of the s a les promo tiona l

effor t compan ies have to effec tively promo te the even t and cons truct the who le se t

of marke ting ac tivities around the even t. How compan ies use promo tions to get

more reward ou t of sponsorsh i p is the rea l test.

CON SUM E R PROMO T ION S :-

In bu ilding a s trategy for a consumer, promo tion one of the cruc ial dec isions to

take wh ich w ill bear on the type of scheme se lected is whe ther to a im for a " trail"

of the consumer.

A " trail" usua lly involves ge tting s ingle purchases sa les from a w ide range of customers-many of them poss i bly non-produc t users. Whereas ' load ing' tr ies to ge t

a number of purchases for a sma ller group of buyers many of them poss i bly

already uses on a regu lar bas is.

Tra il is obv ious ly the one pos itive approach and is fo llowed by brands w ith grow th

amb itions. 'Once a user, a lways a user' is the though t that lies beh ind this concep t.

Put the produc t in the prospec ts hands and you have a cus tomer.

Load ing, on the o ther hand, in used by compan ies whose produc t or brand is on the

slide or those who face compe tition from new produc ts. Here the company

obvious ly wh ishes to keep their cus tomers loya l and s top them defec ting. Na turally

some promo tions have some trail and load ing effec ts comb ined.

T RAD E PROMO T ION S :-

Today, w ith many large re tailers, in very powerfu l pos itions, trade promo tions is

an area wh ich can be cos tly for manufac tures if they have no t worked ou t what

their strategy is and how effec tively their budge t will be spen t.


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Pro ject R epor t

The manufac tures a im is too increases sa les and prof its of par ticular brands.

R etailers, on the o ther hand, are on ly concerned w ith ra ising the total turnover of

their stores, and in do ing so, they don' t mind wh ich brand they se ll.

Many promo tion a imed a t the trade are af ter d isguised d iscounts, adver tising or

point-of-sa le mater ial contr i butions. Compe titors and dea ler loaders are a imed

more par ticular a t store s taff and managers and are des igned to encourage a

stock ing of lines promo ting them to the pub lic.

PROMO T ION S FOR T H E INDU ST RIA L MARK ET :-

It may seen as though sa les promo tion schemes are geared to the consumer and

retailer marke ts. However, the industr ial marke t uses a w ide range of sa les promo tion tools to stimulate sa les and bu ild stronger re lationsh i p w ith its

customers and c lients.

Techn ically or iented compan ies of ten make ava ilable des ign gu ides, ads such as

spec ial calculators, or spec ialized sma ll pieces of equ i pmen t relevant to the

industry, samp les, bus iness g if ts, conference abroad, sem inars and exh i bitions for

customers and prospec ts. A ll these are des igned to encourage purchases, introducenew produc ts or serv ices and to cemen t to buyer-se ller re lationsh i p.


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Project Report

CHAPTER - 4

Practical Aspect Sales Promotion


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Pro ject R epor t

Pract ica l Aspect Sa les Promot ion

Desp ite be ing a late en trant in Ind ian Market Coca Co la has done a remarkab le job

of typing up sof t dr ink. In this way it has acqu ired very s trong brands like Coca-

cola, Spr ite, Thums Up e tc.

In the beg inning Coca Co la was mos tly re lying on its g loba l strategy w ith little

mod if ication for Ind ian marke t. On the o ther hand these days it is trying to get

converse it in Ind ian f lavour, in a b ig way w ith the he l p of several lessons it

learned in pas t few years. Now the company has s tar ted sponsor ing cr icke t

tournamen t, mov ies, mus ical events etc.

Company has a lso made a s trategic change in its percep tion of v iew ing Ind ia as a

single homogenous marke t. It has identif ied 4 d istr ict reg ion and has appo inted

regiona l marke ting manager aga inst nationa l needs.

PROMO T IONA L SC H EM E S

Many schemes were ha tched for the increased se lling of the brand and to attract

customers.1. Li mca L aunches ' L aptop K i Bar ish'

Coca-co la Ind ia has announced the launch of its innova tive 'L ica Lap top K i Bar ish'

consumer initiative na tiona lly. As par t of this un ique initiative a compu ter

genera ted lucky draw wou ld prov ide consumers a chance to w in "HP Mini Lap top"

every hour for the Nex t 45 days. The initiative is app licab le to 200m l, 300m l

returnab le g lass bo ttles ( R GB) and a lso on 500m l, 600m l 1.25, 1.5, 2 & 2.25 liters

PET bo ttles of L imca. As par t of the under the crown initiative consumers just

need to SMS "LI MCA" fo llowed by a 9 d igit unique code to 58558 from their

GSM / CD MA mob ile phones.


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Pro ject R epor t

Coca-Co la Cr icket

Cr icke t the mos t sought af ter, wa tched & p layed game in india. The game of

cr icket has been owned by var ious brands in the industry for the promo tion of their

produc ts over a per iod of time. I t has ranged from tobacco to lubr icants to

commun ication compan ies to banks to air lines & lately to the beverages indus try.

The compe tition has become tougher & tougher as the time has progressed.

Coca-co la s igned a sponsorsh i p agreemen t with IPL team of K ings 11 Pun jab.

Coca-co la rea lizing the fac t that cr icke t is a very s trong e lemen t by wh ich it can

reach it consumers & masses inves ted in the oppor tunity and launched a mass ive

campa ign on mass med ia show ing a ll these cr icke t stars endors ing &

comp limenting Coca-co la brand. The Coca-co la company deve loped three TV

commerc ials & four testimonial ads w ith the p layer & ran them on the na tiona l

network dur ing var ious cr icket matches.

Coca-Co la Food Me la

With a sp lash of food, fun & pr izes to be won, the Coca-co la food me la treated the

peop le, to a fes tive food fes tival compr ising of 50 res tauran ts, spread ou t all over

the bus tling c ity's map. The promo tion saw the av id fam ilies & fr iends en joyingthe de licac ies a t the res tauran ts ; a ll res iliently upho lding the Coca-Co la identity.

Coca-Co la GO-R E D

Quench ing the thirst of mo tor ist, pedes tr ians & passerby's dur ing ho test summer

season, Coca-Co la's "GO- R ED" teams wen t out into the c ities ma in quadran ts to

"serve & refresh" on the spo t with ice-co la Coca-Co las a t discoun ted pr ices backed

by a heavy FM announcemen t campa ign the "GO- R ED" s tall, served we ll to promo te the Coca-Co la industry.


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Pro ject R epor t

Coca-Co la Pet Promot ion

In 2008, Coca-Co la launched 1.5 liter Pe t contour bo ttle Targe ting house w ives &

family home, Coca-Co la's 1.5 liter Pe t bottle, took the limelight & ga ined

momen tum w ith a campa ign promo ting the un ique packag ing and its numerous

consumer benef its. A treat for the fam ily, Coca-Co la's PET was offered through a

"Pr ice-Off" promo tion

Scheme

Coca comes ou t with the schemes on their d ifferen t produc ts many times in a year.

Most of these schemes are made to benef it the re tailers. Some of the schemes are

as fo llows :

1 Bo ttle of 2 lt. free w ith one 2 lt botle pack.

1 Bo ttle of 1 L t. free w ith one bo ttle pack.

2 bottles of 500m l free w ith one 500m l bottle pack.

6 bottles of k inley free w th one pack of K inley.

These schemes keep on changing depending upon the stock.

Promot ion through restaurants and c inema ha ll ho ldings :

Coca-Co la is tying up w ith d ifferen t chains of res tauran ts and fas t food cen ters to

promo te the Coca-co la and its other brands like L imca, Spr ite, Maaza etc. these

restauran ts are au thor ized to keep and use the merchand ising asse ts of Peps i.

Usua lly these k inds of res tauran ts and fas t food cha ins are in con tract with the

Peps i Co., So that they canno t promo te any o ther brand.

Merchand ising assets :-Coca-Co la a lso try to promo te their brands by prov iding their re tailers and dea lers

some d isplay items. Some of such items are as fo llows :-

1. Fr ides

2. Coca-Co la / Mazza stands


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3. Display bottles

4. Posters

Coca- Cola provide the above things to the retailers to use them in promoting

companies brands and products, and provide refrigerators to the retailers in the

hope that these retailers only use these assets in promoting the Coca- Cola's

products and they will chill the Coca- Cola's products so that its products will

always be available to the end consumers. But it is not true in most of the cases.

Retailers usually use the merchandising asset of one company in such a way that it

benefits another company. Sometime they do it unknowingly, sometimes they do it

knowingly and sometimes because of the deficiencies of the company.

AVAILABILITY

Availability is done according the type of outlet. There are four type of outlet

mentioned below. According to this market developer has to ensure the availability

of the products in the particular outlet.

ACTIVATION

Activation is important because it helps to boost the sales of the company. It is

done through the Glow sign, Shlf display, flanges, Combo Boards, Table tops.This boards usually gives to the E&D outlets. It helps to attract the customers.

Rack with header is provided to the grocery stores.


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Under coke market developer has to insure that shopkeeper must display all

products. Display may be in the form of shelf display, table top display etc. all

products must be displayed in brand order i.e. Thumsup, Coke, Sprite, Limca,Fanta, Maa a, Minute maid pulpy orange, Kinley (mineral water & soda water.)


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ADVERTISEMNETS AND DISPLAYS

*JO DIKHT A H A I V O BIKT A H A I *

Glowing sign board at prime locations should be put that to not wall hanging one

but standing one.

There should be a price communication of the product as juice drink is one which

has a impression in psyche that it is costly along with any added quality regarding

the product could also be mentioned keeping the end users in mind as :


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Pro ject R epor t

Da ta Ana lysis and In terpre tation

To conduc t survey, I chose Pa tna town area as a samp le. For the co llection of

informa tion I two hundred responden ts.

All though t it was hard nu t to crack for me to co llect a lot of consumers v iews

dur ing this shor t span of a mon th and a for tnight to cover max imum number of

distr i butors, re tailers. Ye t I s train my every never to know consumer's preference,

taste and d issatisfac tion.

A samp le of 200 responden ts each of them a sof t dr inks consumers, who consumed

one sof t dr inks a t least once a for tnight. I found the L ion's shares are in Coca-

Cola's baske t but Peps i produc ts are the ma in r ival in Pa tna.

Af ter co llecting the da ta it was c lass if ied, tabulated and ana lysed.


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1. Which brand of soft drinks you deal in ?

Coca- Cola 60

Pepsi 50

Both 90

Sample Si e = 200

25%

30%

45% Pepsi

Coca-Cola

Both


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2. Which brand of cola provides you better facility ?

Coca- Cola 90

Pepsi 0

Both 40

Sample Si e = 200

35%

45%

20% Pepsi

Coca-Cola

Both


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3. Which product of Coca-cola is most liked by consumers ?

Coca-cola 40

Thumps up 35

Sprite 35

Fanta 35

Ma a 30

Limca 25

Sample Si e = 200

20%

17%

17%18%

15%13%

Coca-cola Thumps up Sprite Fanta Maza Limca


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4. How many crates of Coca-cola & Pepsi you sell per day ?

0 - 1 crates 30

1 - 2 crates 0

2 - 3 crates 60

above 3 crates 40

Sample Si e = 200

15%

35%30%

20%

0 - 1 crates 1 - 2 crates 2 - 3 crates above 3 crates


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Project Report

5. Which company ' s signage you have in your outlet ?

Pepsi 0

Coca- Cola 0

Both 50

No signage 10

Sample Si e = 200

35%

35%

25%

5%

Pepsi Coca-Cola Both No signage


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6. Which Company ' s visi-cooler do you have in your outlet ?

Pepsi 65

Coca- Cola 0

Both 35

Own 30

Sample Si e = 200

32%

35%

18%

15%

Pepsi Coca-Cola Both Own


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Project Report

7. Which medium affects the sales most ?

Television 60

Maga ines / Newspapers 30

Display 50

Wall Painting / Hoardings 60

Sample Si e = 200

30

15 25

30

Television Magazines / Newspapers Display Wall Painting / Hoardings


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Project Report

8. What kind of Promotional activities affect sales mostly ?

Free bottle scheme 85

Pri e 40

Discount 45

Others 30

Sample Si e = 200

42

20

23

15

ree bo

le sche e

rize Discoun

hers


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9. In which month the sale of soft drinks is at peak ?

April 30

May 45

June 0

July 55

Sample Si e = 200

15%

22%

35%

28%

April May June July


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Pro ject R epor t

CONCLUSION

On the bas is of this survey conduc ted researcher has come to fo llow ing

conc lusion.

The larges t selling brand is spr ite, wh ich was ava ilable in 98% of the

outlets.

Sem i permanen t poster ma ter ials like dang ler cu t out etc. has no t been

proper ly distr i buted by the sa les represen tatives.

The peak season for sof t dr ink dur ing the year in Ind ia is Apr il May, June

and Ju ly.

Sales Promo tiona l Activities shou ld include to gif ts etc. to increase the sa les

even in the off- season.

From the marke t query in some se lected c ities if has been found that

Hindustan Coca Co la covers over a ll 58% of marke t share.

The company shou ld adop t some d iscount policy to prov ide refr igerator to

dealers as 35% of dea lers do no t have Coke refr igerators.

The company shou ld prov ide fes tive d iscoun ts on the occas ion of fes tivals

on its produc ts.

Spr ite produc t is the bes t Lemon lime f lavoured dr ink de light the

consumers.


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SUGG E ST ION

1. The Consumers shou ld be made aware of the schemes launched v ia

adver tisemen t or pamph lets as many comp lained for no t getting informa tion

about the schemes on time.

2. The consumers wan t more promo tion abou t the produc t espec ially on Coke.

3. From the survey I came to know that among the d ifferen t brands the Coca-

Cola. Spr ite and Thums-Up have the monopo ly. Due to wh ich the paren t

brand ge ts suppressed . Thus the Coke brand mus t be promo ted to acqu ire

higher marke t share.

4. 300 m l bottles are much in demand due to the low pr ice. Bu t cans and pe t

jars have to suffer. Thus their pr ice shou ld be lowered so that demand

shoo ts up and then the marke t share w ill also increase.

5. The f lavour of Coke shou ld be enhanced in taste and pungency.

6. Schemes shou ld be prov ided by the Company on its d ifferen t brands in

differen t size to crea te demand.

7. The dr ink shou ld be carefu lly prepared as there are some comp lains abou t

the impur ities and some abou t the fake syrup.

8. The Company shou ld preface bo ttling of sugar free sof t dr ink in each brand

to attract senior c itizens as we ll as d iabetic peop le.

9. There shou ld be s trong marke ting informa tion sys tem.

10. The company shou ld launch the co ins program for the cus tomer.

11. The company shou ld sponsor programmes, where the loca l public cou ld

gather. Because it strenthens d irec t relationshi p between consumer and the

company.

123. The company shou ld organ ize the road show to aware the peop le abou t its produc t.


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QU ES T IONNAIRE

Name :- ......................................... ..............................................................................

Address :- ...................................................................................................................

.................................................. ...................................................................................

Which sex group do you be long ? ..............................................................................

Which age group do you be long ? ............................. .................................................

What is your occupa tion ? .........................................................................................

In wh ich income groups do you beo long .................................................... ...............

1. Wh ich brand of sof t dr inks you dea l in ?

(a) Coca-Co la (b) Peps i

(c) Bo th

2. Wh ich brand of co la prov ides you be tter fac ility ?

(a) Coca-Co la (b) Peps i (c) Bo th

3. Wh ich produc t of Peps i is mos t liked by consumers ?

(a) Coca-co la (b) Thumsup (c) Spr ite

(d) Fan ta (e) Maza (f) L imca4. How many cra tes of Peps i & Coca-co la you se ll per day ?

(a) 0 - 1 cra tes (b) 1 - 2 cra tes

(c) 2 - 3 cra tes (d) above 3 cra tes

5. Wh ich company's s ignage you have in your ou tlet ?


(d) No s ignage

6. Wh ich Company's v isi-coo ler do you have in your ou tlet ?


(d) Own


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Pro ject R epor t

7. Wh ich med ium affec ts the sa les mos t ?

(a) Te levision (b) Magazines / Newspapers

(c) D isplay (d) Wa ll Pa inting / Hoard ings

8. Wha t k ind of Promo tiona l activities affec t sales mos tly ?

(a) Free bo ttle scheme (b) Pr ize

(c) D iscoun t (d) O thers

9. In wh ich mon th the sa le of sof t dr inks is at peak ?

(a) Apr il (b) May

(c) June (d) Ju ly

10. Any sugges tion for be tter d istr i bution fac ilit y ?

.........................................................................................................................

Thank you

(Signature of the R esponden t)


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Pro ject R epor t

B IB LIOGRAPHY

1. MAR KETING MANAGE MENT : Phili p Ko tler

2. Bus iness Wor ld

3. Bas ics of Coca-Co la Sys tems : A Company Bu lletin

4. Marke ting R esearch : Anker

5. Journa ls of Coca-Co la

6. In ternet

PROJECT Coca-Cola Ritesh

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