Project Report Jai

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PROJECT REPORT

ON

The reason of decreasing the sell

Of Coca-Cola

WITH REFERENCE TO

(Hanumangarh)

Submitted to: Submitted by:

Mr. Abhijit Nair Jai Singh Rathore

PGDM(2012-14)

http://en.wikipedia.org/wiki/File:Samsung_Logo.svg




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PREFACE

Any training programme helps us to use our theoretical base to groom our practicalarea. T oday’s corporates need that kind of people who have strong Practicalknowledge as well as theoretical knowledge so that one can survive in any kind ofsituation. Research is a kind of feedback thing which is done by a company to makeit’s decision effectively. Research is a systematic way of finding the fact and analysis

problems. This helps them to take decision and to do the needy things.

Summer project is a part of MBA collage where their student gets practical exposerof their theoretical knowledge. In summer project they are given a real situation wherethey use their knowledge to reach out a particular decision. It is a kind of training

programme which helps them to polishes their decision making, managerial andadministrative skills.

Summer project which is given to me was “REASON OF DECRESING THE SALEOF COCA- COLA”. I did my project at HANUMANGARH district in RAJASTHAN.



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ACKNOWLEDGEMENT

I would like to express my gratitude to MR. SHASIKANT JOSHI for giving mean opportunity to work on a live project where I could use my knowledge in a bestmanner. I’m thankful to MR. PARMOD SUTHA (ASM) for giving anopportunity to work I rural market under their guidance. I’m also thankful toMR.VIKAS (STL), MR.ASHOK (SALES HEAD ), MR.LAXMAN(DISTRIBUTER), MR.RAJEEV(RMD), MR.RAVINDER(MD ) forguidance because without them I couldn’t be able to do my project.

I would also like to convey my thank to MR.ABHIJIT NAIR, my mentor(jimj) fortheir guidance and help.



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EXECUTIVE SUMMARY

I did my sip with Coca-Cola in two parts. In first part I used to go with MD to find outwhat’s happening in the market. I mean which product is demanding and which is not.The fridge that is given to shopkeeper wether it is been using in proper manner or not.

In second part I used to go in rural market to see the opportunity of new spokes as wellas the condition of competitor.



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Summer Internship certificate from the organization

Certificate of Originality form the Faculty Mentor

Preface

Acknowledgement

Executive Summary

1. Introduction

A. Heading related with Topic of the summer internship project

B. Rationale of the study

C. Objective of the study

2. Literature Review

3. Methodology

A. Research Design

B. Data

C. Data Analysis Mechanism

4. Results

A. Analysis

B. Findings

5. Conclusion

A. Conclusion

B. Recommendations

References

Annexure





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1.1: HEADING

REASON OF DECREASING THE SALE OF COCA-COLA



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1.2: RATIONAL OF THE STUDY

Sales and distribution is an integral part of marketing. Here, Coca Cola the leading brand in soft drinks worldwide. Coke has maintained its brand image with high precision. The marketing strategy of Coke is very stringent than others. The mainfeatures in their marketing by their offerings and its sales and distribution. It’s mygratitude to work with Coca Cola Company especially in marketing department. I have

been placed their in sales and distribution department for my internship. The researchwork was not as easy as Coca Cola is very strict in their marketing policy. In the

beginning the main reason for conducting this study was to know the proper allocation

of distribution to the suppliers and also to know about the products. Further, it is tounderstand the availability of the product and to check out that there is the properadvertising of the product and also to know the working condition of the visi cooler

provided by the company. Also to know the various scheme provided by the CocaCola is really applied in the market or not and to compare the schemes with Pepsi

products and the other local competitor. The study is done to understand the problemof the retailers and to know what the main reason of decreasing it’s sell



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1.3: OBJECTIVE OF THE STUDY

The objective of the study is to find out the reason that why people are moving toother brand which are in the market I mean why coco- cola’s growth is running down

and why people are not taking Coca- Cola’s brand.



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CHAPTOR-2

Literature Review



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The world has changed in many ways since pharmacist; John Smith Pemberton first introduced the

refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the product mean so many things to

hundreds of Millions of consumers around the globe. Coca-Cola products are served more than 705

million times every day, quenching the thirsts of consumers in more than 195 countries in every

climate. That's a long way to come after such a modest beginning.

May1886 - Pemberton concocted caramel-colored syrup in a three-legged brass kettle in his

backyard. He first "distributed" the new product by carrying Coca-Cola in a jug down the street to

Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain.

Whether by design or accident,

Carbonated water was teamed with the new syrup, producing a drink that was

Proclaimed "Delicious and Refreshing." Dr. Pemberton's partner and bookkeeper, Frank M.

Robinson, suggested the name and penned, in the unique flowing script that is famous worldwide

today.

1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25

gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with

the No. 1 soft drink brand ever since.

1891 - Atlanta entrepreneur Mr. Candler had acquired complete ownership of the Coca-Cola

business for $2,300. Pemberton was forced to sell because he was in a state of poor health and was in

debt. Within four years, Candler's merchandising flair helped expand consumption of Coca-Cola to

every state and territory.

1917 - 3 Million Coke's sold per day. "COCA- COLA" is the world’s most recognized trademark.

1919 - The Coca-Cola Company was sold a group of investors for $25 million.

1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff for 25 million

dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president for six decades.

Woodruff's leadership took the business to unrivaled heights of commercial success, making Coca-

Cola an institution the world over.



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During the Woodruff era, Mr. Woodruff made a promise to the armed forces of the United States to

supply Coca-Cola to every serviceperson. He said that costs and location did not matter; he supplied

5 billion bottles to the service.

1925 - 6 Million Coke's sold per day.

1927 - The first Coca-Cola radio advertisement.

1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time.

1943 On June 29, an urgent cablegram arrived from General Dwight Eisenhower's Allied

Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve American servicemen

overseas. Eventually, 64 plants were set up during WWII.

1950 - Advertising on the television began. Currently Coca-Cola is advertised on over five hundred

TV channels around the world.

1961 - Sprite was introduced.

1971 - The song "I'd like to Buy the World a Coke" was released.

1978 - The two liter bottle was introduced, and during that same year the company also introduced

plastic bottles

1982 - Diet Coke was introduced in July.

1985 - The Coca-Cola Company made what has been known as one of the biggest marketing

blunder. They stumbled into a new formula in efforts to produce diet Coke. They put forth 4 million

dollars of research to come up with the new formula.

The new formula was a sweeter variation with less tang, it was also slightly smoother.

The factor that influenced the change was that Coke's market share fell 2.5 percent in four years.

Each percentage point lost or gain meant 200 million dollars. This was the first flavor change since

the existence of the Coca-Cola company. The change was announced April 23, 1985 at the Vivian

Beaumont Theater at the Lincoln Center. Some two hundred TV and newspaper reporters attended

this very glitzy announcement. The change to the world's best selling soft drink was heard by 81

percent of the United States population within twenty-four hours of the announcement. Within aweek of the change, one thousand calls a day were flooding the company's eight hundred number.

Most of the callers were shocked and/or outraged, many said that they were considering switching to

Pepsi. Within six weeks, the eight hundred number was being jammed by

Six thousand calls a day. The company also fielded over forty thousand letters, which were all

answered and each person got a coupon for the new Coke. Many American consumers of Coca-Cola

asked if they would have the final say. When Pepsi heard that the Coca-Cola Company was changing

its secret formula they said that it was a decision that Pepsi tastes better. Roger Enrico, the presidentand CEO of Pepsi-Cola wrote a letter to every major newspaper in the U.S. to declare the victory.



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Coca-Cola management had to decide: Do nothing or "buy the world a new Coke". They decided to

develop the new formula.

1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke was brought back

in addition to the new one. This was greatly due to dropping market share and consumer protest. The

market share fell from a high of 15 percent to allow of 1.4 percent. This was said to be a classic

marketing retreat. Coca-Cola executives admitted that they had goofed by taking the old Coke off the

market.

The Coca- Cola Company’s eight hundred number received ei ghteen thousand Calls of gratitude. The

comeback of old Coke drove stock prices to the highest Level in twelve years. This was said to be

the only way to regain the lead on the Cola wars.

1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.

1996 - The Summer Olympics was held in Atlanta, Georgia, the home of Coca-Cola



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CHAPTOR-3

Methodology



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3.1: Research Design

The design appropriate for this research is Exploratory Research Design. Exploratory

research studies are also termed as formulative research studies. The main purpose of

such studies is that of formulating a problem for more precise investigation or of

developing the working hypothesis from an operational point of view. The majoremphasis in such studies is on the discovery of ideas and insights. As such the

research design appropriate for such studies must be flexible enough to provide

opportunity for considering different aspects of a problem under study in built

flexibility in research design is needed because the research problem, broadly defined

initially as transformed in to one with more precise meaning in explanatory studies,

which fact may necessitate changes in the research procedure for gathering relevantdata.

The survey was conducted in HANUMANGARH by asking from dealers.

The Exploratory Research Design could be accomplished by study of secondary data:

Secondary data are those which have already been collected by someone else

and which have already been passed through the statistical process.

Company is product information brochure.

Various articles related to consumer electronics published in the newspapers &

magazines.



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Company’s profile br ochure.

To analysis how Coke is competing with its competitor Pepsi and other local brand

and how the other brands has stolen it’s market share I made a research. For thisresearch I have these objectives:

1. To analyze the distribution channel system.

2. To check the brand availability.

3. To analyze the effectiveness of the schemes launched by the company.

4. To find the retailer’s satisfaction..

5.

To ensure the visibility of the product.6. To give valued suggestion to the company.

Why I made research ……..

The topic “ Reason of decreasing the sale of coke ” for the project work was

suggested to me by the ASM of Hindustan Coca-Cola Beverage private limited. He

asked me to conduct a survey in areas where the Coca-Cola market is weak and to

make a study of its major competitor “PEPSI” as well as of other local competitor.

The idea that was provided to me by the ASM and the STL, I went ahead for the

research. In order to collect samples during my survey I planned to take recourse to

the Random Sampling because as the name suggests, in this method of sampling any

unit of population can be selected at random. In my research, the retailers inHANUMANGARH comprise the universe. Therefore, they are the ones who

constitute as the main source of information to me.

Sample size for my survey

The survey was done in about 200 shops including eateries

& drinkers, groceries and other conveniences



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3.2 DATA

There are different methods of data collection. They are:-observation,experimentation, uncontrolled experimentation, controlled experimentation, survey

and focus group. But in my survey data are collected by market survey. The survey

was done on 200 hundred shops of HANUMANGARH.

MARKET SURVEY

Market survey is one of the most widely used MR technique . It has to be understoodclearly that market survey is just one of the techniques of MR and is not synonymous

with MR. It is just one of the methods of collecting marketing information required for

a given marketing assignment. It is used when the required data is not available with

the company’s internal records, as well as external published source. Here the

researcher carries out opinion involving sales persons, dealers, traders and experts.

Trade surveys are very common. In conducting these surveys, the researcher has tocarefully select the instrument and methods of surveying.



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3.3: Data Analysis Mechanism

The data can be dichotomized into two types: primary data, secondary. In this study

the data collected was mainly primary data. The respondents were from the area ofHanumangarh. The secondary data were obtained from the Coca-Cola city office. The

sample size collected for the various objectives where, from the total number of outlet

the sample size determined was: 200

INSTRUMENT FOR DATA COLLLECTION:

The primary data collected through the survey method for the purpose of the study.The survey was done by using questionnaire method . Beside this I had an informal

discussion with the retail outlet. Secondary data : information regarding the

organization was obtained from secondary sources like company journals, company

websites, publications & records.



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CHAPTOR-4

Results



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4.1 : Analysis

1. Type of outlet visited .

2. Which brand of soft drinks you deal in

General Store Pan Store Sweet shop Canteen0

10

20

30

40

50

60

70

80

90

Outlet Visited

Outlet Visited

0

10

20

30

40

50

60

70

80

90

100

Coca Cola Pepsi Both Others

Series 1

Series 1





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3. Which company ’s signage you have in your outlet?

4 Which company ’s visi- cooler you have in your outlet ?

0

10

20

30

40

50

60

70

80

Coca cola Pepsi Both No signage

Series 1

Series 1

0

20

40

60

80

100

120

coca cola pepsi Both Mixed

Series 1

Series 1





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5. Which company have better distribution network?

6. Which is most preferred size of the bottle by customer?

7.Do the customer know the difference between branded and unbranded soft drinks?

0

20

40

60

80

100

120

coco cola pepsi both

Series 1

Series 1

0

10

20

30

40

50

60

200ml 300ml 500ml 1000ml 1500ml 2000ml

Series 1

Series 1





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8. What type of cold drinks you are selling?

9. Major age group of customers who buy soft drinks?

0

20

40

60

80

100

120

140

160

Yes No

Series 1

Series 1

0

10

20

30

40

50

60

70

80

90

Branded Unbranded Both

Series 1

Series 1





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10. What do you feel about the price of branded soft drinks?

11 Do you feel a price reduction will increase the sales of branded soft drinks ?

0

10

20

30

40

50

60

Category 1 0-15 15- 25 25-35 35-45 45-55

Series 1

Series 1

0

20

40

60

80

100

120

yes no no reply

Series 1

Series 1





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12. What are your suggestion to improve the sale ?

4.2: Finding

0

2040

60

80

100

120

140

160

180200

yes no

Series 1

Series 1

0

10

20

30

40

50

60

70

80

New Schemerefregeration systemadvertisementcredit fecility regular supply

Series 1

Series 1





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MARKET OBSERVATIONS:

DEALER’S RESPONSE

A. Management Problems

1. Company does not support dealers No regular visit from the sales people.

2. Dealers are annoyed with the sales representative.

No stock delivery after being ordered.

3. Services are very poor. No new price list Billing problem Sometime expire sock been given to them

4. Replacement problem (Time Consuming and Negligence). Replacement of BBD stocks pending since 6 months or more.

B. Market Picture

No direct letter is given to the retailer regarding the schemes introduced by the

company. Not proper supply of each flavor (SKU). Poor delivery of stocks against order MD and RMD are unaware of new scheme No hoardings are given to shopkeeper No fridge availability.



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CHAPTOR-5



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Conclusion

4.1: CONCLUSION



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1. The Beverages market can be segmented mainly on price and quality basis as all

the players in the market have matched same quantity standards.

2. The customers basically have very thin idea about the product and hence the

role of dealer becomes significant.

3. Most of the customers are driven either by past brand image or recent ad-

commercials.

4. The brand awareness is most important determinants, pricing takes a back seat.

5. Retailers are keen to sold Coca- Cola, because of the brand and quality

maintained by it.

6. The whole research shows that there are only two companies dominating in

the soft drinks market- Coca-Cola and Pepsi. There is neck – to- neckcompetition in between these companies.

5.2: Recommendations



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1. Coca Cola needs to view it ’s intermediaries or distributers timely and try to give

more profit as much as possible. So that they may sale coke more than other

brand.

2. Company can keep the retailers happy by paying regular visits to them and also

ask them to continuously monitor the consumers and their problem.

3. Company use motivating things like high margin, special deals, advertising

allowance etc.

4. The company should clearly communicate what it wants from its retailers in the

way of market coverage, market development and marketing information.

5. Coca Cola has competitions with Pepsi. Therefore it advisable that proper

service should be maintained and also the product quality should be checked

before delivery.

6. Coca Cola must periodically evaluate it ’s channel performance against

standards such as sales , average inventory levels, customer delivery time,

treatment of damaged goods and cooperation in promotional training program.

It is important that under performers need to be re-motivated or terminated.

7. Brand image has been the first and foremost important thing in Fast Moving

Consumer Goods (FMCG) segments. Coca Cola has made good brand

reputation among the customers. It gets hamper due to weak supply that is

provided to retailers and consumers. . This will increase the dissatisfaction level

of the customers.



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8. Retailers and Consumers have sense of belongingness towards the Hindustan

Coca Cola Beverages Pvt. Ltd.(HCCBPL).so it should try to make this

relationship as long as they can.

It can be achieved by various ways:

The quality of interaction between the company official & retailers should be

improved.

Schemes should be made such that customers and retailers both get benefited

through the schemes.

Monthly meetings may be arranging to access the performance of poor markets.

This will give them a sense of responsibility.

References:

(1) Website of Hindustan Coca Cola Beverages Pvt. Ltd.

http:\ www. coca -cola india.com



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(2) Information brochure of Coca Cola.

(3) Research Methodology by C.R. Kothari.

(4) Marketing Management, Kotler & Keller.

(5) Consumer Behavior, Keith Davis.

Annexure:

Q.1 Type of outlet



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(a) General store (b) Pan shop

(C) Sweet shop (d) Canteen

Q2. Which brand of soft drinks you deal in?

(a) Coca cola (b) Pepsi

(c) Both (d) Others

Q3. Which company ’s signage you have in your outlet?


(c)Both (d) No signage

Q4. Which company ’s VISI- cooler you have in your outlet?


(c) Both (d) Mixed

Q5. Which company have better distribution network?

(a) Coca cola (b) Pepsi (C) Both

Q6. Which is most preferred size of the bottle by customer?

200ml 300ml 500ml 1000ml 1500ml 2000ml

Q7. Does the customer know the difference between branded and unbranded softdrinks?(a)Yes ( b ) NoQ8. What type of cold drinks you are selling?

(a) Branded (b) unbranded (c) both

Q9. Major age group of customers who buy soft drinks?



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(a) 5-15 (b) 15-25 (c) 35-45 (d) 45-55

Q10. What do you feel about the price of branded soft drinks?

(a) Very high (b) High (c) Medium (d) Low(e) Reasonable

Q11. Do you feel a price reduction will increase the sales of branded soft drinks?

(a) Yes (b) No

Q12. Which medium affect the sales most?(a)Television (b) Magazines/News papers

(c) Display (d) Wall paintings/Hoardings

Q13. Do you think that aggressive advertising further increase the sales volume of

Pepsi?

(a) Yes (b) No (c) No reply

Q14. What kind of promotional activities affect sale mostly?

(a)Free bottle scheme (b) Prize

(c) Discount carats (d) other

Q15. What is your suggestion to improve the sale?

(a) New schemes

(b) Refrigeration system

(c) Advertisement

(d) Reduction in deposits

(e) Credit facilities (f) Regular supply



Project Report Jai

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