INTRODUCTION The objective of the project is to know the retailers preferences for Cola Drinks, to a comparative study on rural and urban retailer satisfaction of COCA COLA and the report contains a brief introduction of Coca Cola. The company COCA COLA has interests in various sectors and they provide consistent quality products to meet our retailers and costumer’s requirement worldwide. This report clearly mentions objective of the study and the research methodology utilized. Both primary data and secondary data. The data collection method used is structured non disguised questionnaire in which the types of questions used are open ended, multiple choice and close ended. The report contains a detailed view of the tasks, which have been undertaken to analyze the market of COCA COLA. Various sets of questionnaire have been prepared to know the preference of retailers about the COCA COLA. Some of the research areas in Guntur district. This project reveals one of 1
INTRODUCTION The objective of the project is to know the retailers preferences for Cola Drinks, to a comparative study on rural and urban retailer satisfaction of COCA COLA and the report contains a brief introduction of Coca Cola. The company COCA COLA has interests in various sectors and they provide consistent quality products to meet our retailers and costumer’s requirement worldwide. This report clearly mentions objective of the study and the research methodology utilized. Both primary data
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INTRODUCTION
The objective of the project is to know the retailers preferences for Cola
Drinks, to a comparative study on rural and urban retailer satisfaction of
COCA COLA and the report contains a brief introduction of Coca Cola.
The company COCA COLA has interests in various sectors and they
provide consistent quality products to meet our retailers and costumer’s
requirement worldwide.
This report clearly mentions objective of the study and the research
methodology utilized. Both primary data and secondary data. The data
collection method used is structured non disguised questionnaire in which
the types of questions used are open ended, multiple choice and close
ended.
The report contains a detailed view of the tasks, which have been
undertaken to analyze the market of COCA COLA. Various sets of
questionnaire have been prepared to know the preference of retailers
about the COCA COLA. Some of the research areas in Guntur district.
This project reveals one of the important findings like more and more
displays of the window hiring and can be given to the retail outlets to
increase its consumption, more schemes like ‘Credit Schemes’ and other
schemes can be given to the Retailers.
A detailed survey of the retailers was carried to find out their preferences
for COCA COLA. The details of the methodology are stated below.
Areas are both rural and urban areas in Guntur district research design:
Exploratory and descriptive. Sources of information are primary and
secondary data. Data collection method structured designed by the
questionnaire.
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Types of questions used open ended, multiple choice and close ended.
Sampling method is random sampling.
In this study I found that most of the retailers prefer their 1 st preference to
COCA COLA.
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1.1 NEED OF THE STUDY
Organization is made up of people and function to people
without people organizations cannot exists. The resources by themselves
cannot fulfill the objectives of organization. They need to be united into a
team. The main need of the study is
To define the impact of retailers satisfaction at every place in the
marketing management.
To know how retailers are succeeded in the business organization.
To know how the retailers time utilizing in the business
organization.
To know how the process going on the retailers management in the
Hindustan coca cola beverages private limited.
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1.2 OBJECTIVES OF THE STUDY
To identify the various rural & urban retailer problems and offer solutions to those problems.
To study the retailer satisfaction towards various brands of the company.
To study the views of the rural & urban retailers on various retailer schemes followed by the company.
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1.3 LIMITATIONS OF THE STUDY
1. Some of the respondents are refused to fill the questionnaires.
2. The responses may vary as some people did not want to come up
with real answers.
3. Due to the lake of time period for the collecting data.
4. The survey is conducted only in few areas of Guntur district rural
and urban areas hence the results may vary in other parts of the
Guntur city.
5. Some of the retailers refused to give the information that’s why
Taken very Small sample size.
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1.4 RESEARCH METHODOLOGY
Data sources :
Primary Data:
Data observed or collected directly from first-hand experience is called
primary data.
Responses through questionnaires
Conducted personal interviews with the respondents.
Secondary Data:
Published data and the data collected in the past or other parties are called
secondary data.
Secondary data is collected through the
Company Websites.
News papers.
Journals.
Textbooks.
Research Question: Retailers satisfaction on promotional schemes of
the Coke Company.
Sampling types :
Sampling technique: In this study the respondents sells through
Convenience sampling.
Sample Size: Retailer’s samples are taken 110 samples only.
Samplings Areas: The study is conducted in various rural & urban
Coca-Cola (also known as Coke, a name that was trademarked by
The Coca-Cola Company after it was discovered many people called it by
that particular name) is a very popular cola (a carbonated soft drink) sold
in stores, restaurants and vending machines in more than 200 countries. It
is produced by the Coca-Cola Company (NYSE: KO), which is also often
referred to as simply Coca-Cola or Coke. Coke is one of the world’s
most recognizable and widely sold commercial brands; its major rival is
Pepsi.
Coke was originally intended as a patent medicine when it was
invented in the late 19th century, Coca-Cola was bought out by
businessman Asia Griggs Candler, whose marketing tactics led Coke to
its dominance of the world soft drink market throughout the 20th century.
Although faced with critiques of its health effects and various allegations
of wrongdoing by the company, Coca-Cola has remained a popular soft
drink to the present day It was initially sold as a patent medicine for five
cents a glass at soda fountains, which were popular in the United States at
the time thanks to a belief that carbonated water was good for the health.
The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on
May 8, 1886, and for the first eight months only nine drinks were sold
each day. Coca-Cola was sold in bottles for the first time on March 12,
1894, and cans of Coke first appeared in 1955. By 1888, three versions of
Coca-Cola - sold by three separate businesses were on the market.
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On February 7, 2005, the Coca-Cola Company announced that in
the second quarter of 2005 they planned a launch of a Diet Coke product
sweetened with the artificial sweetener sucra lose ("Splenda"), the same
sweetener currently used in Pepsi One.
The company actually produces concentrate for Coca-Cola, which
is then sold to various Coca-Cola bottlers throughout the world. The
bottlers, who hold territorially-exclusive contracts with the company,
produce finished product in cans and bottles from the concentrate in
combination with filtered water and sweeteners. The bottlers then sell,
distribute and merchandise Coca-Cola in cans and bottles to retail stores
and vending machines.
The Coca-Cola Company has on occasion introduced other cola
drinks under the Coke brand name. The most famous of these is Diet
Coke, which has become a major diet cola but others exist, such as
Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola Company
owns and markets other soft drinks that do not carry the Coca-Cola
branding, such as Sprite, Fanta, and others. The actual production and
distribution of Coca-Cola follows a franchising model. The Coca-Cola
Company only produces a syrup concentrate, which it sells to various
bottlers throughout the world who hold Coca-Cola franchises for one or
more geographical areas. The bottlers produce the final drink by mixing
the syrup with filtered water and sugar (or artificial sweeteners) and fill it
into cans and bottles, which the bottlers then sell and distribute to retail
stores, vending machines, restaurants and food service distributors. The
bottlers are normally also responsible for all advertisement and other
sales initiatives within their areas.
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On the distribution front, 10-tonne trucks, open-bay three-wheelers
that can navigate the narrow alleyways of Indian cities, ensure
availability of our brands in every nook and corner of the country. The
term soft drink originally applied to carbonated drinks made from
concentrates, although it now commonly refers to almost any cold drink
that does not contain alcohol.
Hindustan Coca-Cola Beverages Private Limited is
an Indian subsidiary of the US based Coca-Cola Company. The
company-owned Bottling arm of the Indian Operations, Hindustan Coca-
Cola Beverages Private Limited is responsible for the manufacture, sale
and distribution of beverages across the country. Coca-Cola India is
among the country’s top international investors, having invested more
than US$ 1 billion in India within a decade of its presence and further
pledged another US$ 100 million in 2003 for its operations. It is the
world’s largest selling soft drink since 1886. The Coca-Cola Company
returned to India in 1993 after a gap of 16 years giving new Thums up to
the Indian Soft Drink Market and took over the ownership of the nation's
top soft-drink brands and bottling network.
GENERATIONS IN COCA COLA
1886-1892
Atlanta beginning
It was 1886, and in New York Harbor, workers were constructing
the Statue of Liberty. Eight hundred miles away, another great American
symbol was about to be unveiled. Like many people who change history,
John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. 20
One afternoon, he stirred up a fragrant, caramel-colored liquid and, when
it was done, he carried it a few doors down to Jacobs' Pharmacy. Here,
the mixture was combined with carbonated water and sampled by
customers who all agreed -- this new drink was something special. So
Jacobs' Pharmacy put it on sale for five cents a glass.
Unfortunately for Pemberton, he died in 1888 without realizing
the success of the beverage he had created. Over the course of three
years, 1888-1891, Atlanta businessman Asia Griggs Candler secured
rights to the business for a total of about $2,300. Candler would become
the Company's first president, and the first to bring real vision to the
business and the brand.
1893-1904
Beyond Atlanta
Coca cola hires first celebrity spoke person music hall performer Hilda
Clark Asia G. Candler, a natural born salesman, transformed Coca-Cola
from an invention into a business. He knew there were thirsty people out
there, and Candler found brilliant and innovative ways to introduce them
to this exciting new refreshment. He gave away coupons for
complimentary first tastes of Coca-Cola, and outfitted distributing
pharmacists with clocks, urns, calendars and apothecary scales bearing
the Coca-Cola brand. People saw Coca-Cola everywhere, and the
aggressive promotion worked. By 1895, Candler had built syrup plants in
Chicago, Dallas and Los Angeles.
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1905-1918
Safeguarding the brand
Coca cola enjoyed in 8 countries worldwide. To combat copycats coca cola develops unique bottle Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none too pleased about the proliferation of copycat beverages taking advantage of its success. This was a great product, and a great brand. Both needed to be protected. Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand the genuine" and "Accept no substitute."
The Company also decided to create a distinctive bottle shape to
assure people they were actually getting a real Coca-Cola. The Root
Glass Company of Terre Haute, Indiana, won a contest to design a bottle
that could be recognized in the dark. In 1916, they began manufacturing
the famous contour bottle. The contour bottle, which remains the
signature shape of Coca-Cola today, was chosen for its attractive
appearance, original design and the fact that, even in the dark, you could
identify the genuine article. As the country roared into the new century,
The Coca-Cola Company grew rapidly, moving into Canada, Panama,
Cuba, Puerto Rico, France, and other countries and U.S. territories. In
1900, there were two bottlers of Coca-Cola; by 1920, there would be
about 1,000.
1919-1940
The woodruff legacy
Coca cola enjoyed in 53 countries worldwide. It introduced 6
packs. In 1925 6000000 drinks per day. Perhaps no person had more
impact on The Coca-Cola Company than Robert Woodruff. In 1923, four
years after his father Ernest purchased the Company from Asia Candler,
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Woodruff became the Company president. While Candler had introduced
the U.S. to Coca-Cola, Woodruff would spend more than 60 years as
Company leader introducing the beverage to the world beyond. Woodruff
was a marketing genius who saw opportunities for expansion everywhere.
1941-1959
The war and its legacy
Coca cola enjoyed in 120 countries worldwide. Introducing Coke.
In 1961 Sprite is introduced. 1963 Tab Company’s first diet soft drink is
introduced in 1941,
America entered World War II. Thousands of men and women were sent
overseas. The country, and Coca-Cola, rallied behind them. Woodruff
ordered that "every man in uniform gets a bottle of Coca-Cola for 5 cents,
wherever he is, and whatever it costs the Company." In 1943, General
Dwight D. Eisenhower sent an urgent cablegram to Coca-Cola,
requesting shipment of materials for 10 bottling plants. During the war,
many people enjoyed their first taste of the beverage, and when peace
finally came, the foundations were laid for Coca-Cola to do business
overseas. Woodruff’s vision that Coca-Cola be placed within "arm's reach
of desire," was coming true -- from the mid-1940s until 1960, the number
of countries with bottling operations nearly doubled. Post-war America
was alive with optimism and prosperity. Coca-Cola was part of a fun,
carefree American lifestyle, and his imagery of its advertising -- happy
couples at the drive-in, carefree moms driving big yellow convertibles --
reflected the spirit of the times.
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1960-1981
A world of customers
Coca cola enjoyed in 163 countries worldwide. It introduced can in
1960. In 1981 Roberto c. Goizueta became chairman and CEO of the
coca cola company
After 70 years of success with one brand, Coca-Cola®, the
Company decided to expand with new flavors: Fanta®, originally
developed in the 1940s and introduced in the 1950s; Sprite® followed in
1961, with TAB® in 1963 and Fresca® in 1966. In 1960, The Coca-Cola
Company acquired The Minute Maid Company, adding an entirely new
line of business -- juices -- to the Company.
1982-1989
Diet coke and new coke
Coca cola enjoyed in 165 countries worldwide. In 1982 diet coke is
introduced. The 1980s -- the era of legwarmers, headbands and the fitness
craze, and a time of much change and innovation at The Coca-Cola
Company. In 1981, Roberto C. Goizueta became chairman of The Board
of Directors and CEO of The Coca-Cola Company. Goizueta, who fled
Castro's Cuba in 1961, completely overhauled the Company with a
strategy he called "intelligent risk taking." Among his bold moves was
organizing the numerous U.S. bottling operations into a new public
company, Coca-Cola Enterprises Inc. He also led the introduction of diet
Coke®, the very first extension of the Coca-Cola trademark; within two
years, it had become the top low-calorie drink in the world, second in
success only to Coca-Cola.
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1990-1999
New markets and brands
In 1993 pet bottles are introduced. Coca cola enjoyed in 200
countries worldwide. The 1990s were a time of continued growth for The
Coca-Cola Company.
The Company's long association with sports was strengthened
during this decade, with ongoing support of the Olympic Games, FIFA
World Cup™ football (soccer), Rugby World Cup and the National
Basketball Association. Coca-Cola classic became the Official Soft Drink
of NASCAR racing, connecting the brand with one of the world's fastest
growing and most popular spectator sports. And 1993 saw the
introduction of the popular "Always Coca-Cola" advertising campaign,
and the world met the lovable Coca-Cola Polar Bear for the first time.
New markets opened up as Coca-Cola products were sold in East
Germany in 1990 and returned to India in 1993. New beverages joined
the Company's line-up, including PowerAde® sports drink, Qoo®
children's fruit drink and Dasani bottled water.
Coca cola now
In 1886, Coca-Cola® brought refreshment to patrons of a small
Atlanta pharmacy. Now well into its second century, the Company's goal
is to provide magic every time someone drinks one of its more than 400
brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking
brands such as Ambasa, Vegitabeta and Frescolita. In the remotest
comers of the globe, you can still find Coca-Cola. Coca-Cola is
committed to local markets, paying attention to what people from
different cultures and backgrounds like to drink, and where and how they
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want to drink it. With its bottling partners, the Company reaches out to
the local communities it serves, believing that Coca-Cola exists to benefit
and refresh everyone it touches.
COMPETITOR ANALYSIS
Indian soft drinks market is predominantly controlled by two major
multinationals namely Coca- Cola and Pepsi, which have carefully stifled
out the local competition here in India. Penetrating tough Indian
psychology and making their products feel accepted was the toughest
challenge in front of them. A brief overview of the soft drinks giant
biggest competitor will help in gaining a better insight of the soft drinks
market in totality.
CURRENT MARKET POSITION
There has been much controversy and debate on the market
share standings between the two companies in the Indian
subcontinent and a substantial and a consolidated figure has been
unavailable for reference. This is mainly because both companies had
approached different market research companies for making a study
about the market share standings. Pepsi Co had approached IMRB
while Coca- Cola had entrusted this responsibility on ORG.
According to the survey done by IMRB Pepsi’s market share was
found to have increased from 47% to 49% while according to the
study conducted by ORG Coca- Colas market share was claimed to
be 59%.
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FACTORS AFFECTING BUSINESS
Seasonality: Seasonality is one of the most important factors
that affect the soft drink business. Seasonality is primarily
influenced either by the weather, or by holidays and religious
festivals. Within the Group, soft drink business has different
seasonal cycles throughout the year.
Service frequency: This is another factor that affects the
business. Service frequency is the time gap between visiting a
particular outlet again. Service frequency directly affects the
rotation time which in turn affects the value of business.
Demand pattern for the market: Every product has a
different demand pattern and affects the business.
Price of the product: Price of the soft drinks also affects the
business. Due to perfect competition in soft drink market, price of a
product plays a major role in business.
Disposable Income: Disposable Income of the consumers
also affects the business of the soft drink players. A high
disposable income of the consumers ensures a high demand for the
products in the market.
Demographic Profile: Demographic profile of consumer also
affects the business and needs to be considered.
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Competitor’s Policy: The policies of the competitors also
affect the working of the business of other companies.
Water Conservation Project –III Connecting restored water bodies to
NSC analog Social Impact Environmental Impact Farming lands are
receiving more water during.
Income from agriculture is expected to go up from the current season.
Increased water availability is increasing the greenery in the village,
besides the farming
ORGANIGATION STRUCTURE
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THEORETICAL FRAMEWORK
Marketing
Marketing is the planning and execution of the production, pricing,
promotion and distribution of goods and services to create exchanges
that achieve individual and business objectives. Put simply, marketing is
about matching every part of your business with your customers so that:
• You meet their needs.
• They are aware that you meet their needs.
• They are motivated to buy from you.
• They are motivated to keep buying from you.
If you don’t achieve these outcomes, customers won’t buy from you and
you will go out of business. It won’t matter if you make the best product
in the world or if you are very good at bookkeeping and administration -
poor marketers go out of business.
Sell the Benefits
Customers won’t buy from you if they can’t receive benefits from doing so. Customers always ask: “what’s in it for me?” when deciding whether to buy. For example, when a customer buys an 8mmdrill bit, they are not really interested in buying just a drill bit. More importantly, they are interested in buying the ability to drill 8mm holes. Customers are also interested in buying different levels of quality, capability (e.g. some drill
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bits can only drill timber whereas some can drill bricks and concrete) and price.
When producing goods or services, make sure that you provide customers with more benefits than your competitors. When pricing, make sure that customers are getting good value (in view of the Benefits and the price) and you are making a good profit.
Items to consider
• Advertising.
• Product range and mix of products.
• Price points.
• How products and services are sourced.
• Website.
• Brochure.
• Promotions.
• Events.
The Marketing Process
1. Research your Market Environment
2. Develop and Implement your Marketing Plan
3. Review and Improve
1. Research your Market Environment
Research your industry and your competitors and establish who
your target customers (or target market) are for your goods or services.
Only once you know:
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• Who your customers are, what their needs are and how much they are prepared to pay.
• Who your competitors are what they sell and at what price/s. …can
you decide how to position your goods or services in your target
market/s and develop a Marketing plan to achieve your goals?
2. Develop and Implement your Marketing Plan
Marketing covers much more than just advertising goods or
services. When developing your Marketing Plan, consider how you will
use the elements of your marketing mix to attract customers, meet their
needs and keep them coming back for more. The elements of the
Marketing Mix are the four Ps:
Product, Price, Promotion, Place (distribution) Product
To your customer, your product is all of the features, advantages and
benefits that they can enjoy from buying your goods or services (like the
previous example about buying an 8mm drill bit). Your Product is not
only the goods or services that your business offers but also includes the
people within your business and the service they give the packaging of
the product or service, and the processes that you have to make buying
easier and more enjoyable. The product element is the customer’s entire
experience of dealing with your business from the Quality of customer
service that you give to the image, environment and facilities of your
business premises.
Price
Price relates to your pricing strategy which includes the setting of prices for your products or services. Pricing should take into consideration how much the market is prepared to pay (market demand pricing) and mark-
36
ups that are needed to cater for overheads, other costs and profit margins. The provision of credit to customers, the costs of credit and volume discounting are also aspects of pricing.
Promotion
Promotion relates to how you make your customers aware of your goods or services and the benefits that they can receive by buying them. Promotional activities include:
Advertising - where you pay for your message to be sent to your
target customers through newspaper, radio, television, magazine, outdoor signage, web sites and telephone directories.
Publicity comes from sending media releases to print and
broadcasting media, giving interviews to the media and from favorable word of mouth. From these activities, information reaches your target customers through articles that are published in newspapers, magazines and television shows at no charge.
Sales Promotions are short-term non-routine incentives that a
business offers to encourage purchase of products or services which include coupons, competitions and contests.
Personal Selling is the use of personal presentations and meetings
to sell goods or services. Effective personal selling requires the use of good interpersonal and communication skills, excellent product/service knowledge and the ability to sell the benefits of the goods or services to the prospective customer.
• Direct Marketing includes sending letters, emails, pamphlets and
brochures to individual target customers. Often followed by personal selling or tale marketing, direct marketing activities.
3. Review and Improve37
After you have implemented your marketing plan, determine how well it has increased your sales and profits (review) and make any necessary improvements (improve). If your marketing plan is written down, it will be easier for you to see how your plan has performed and where improvements can be made. Where possible, establish goals and benchmarks so that you can identify more clearly how well your plan has worked and where improvements are necessary.
Distribution:
Commerce: Movement of goods and services from the source through the distribution channel, right up to the final customer, consumer, or user and the movement of payment in the opposite direction, right up to the original producer or supplier.
Physical distribution (or place) is one of the four elements of the
marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user. The other three parts of the marketing mix are product, pricing, and promotion.
Successful retailers know that counting on past success to fuel future growth does not work. Companies that continue to gain market share are evolving with the changing marketplace and expanding into new areas. Continuous improvement is the path to competitive advantage. But many of these change initiatives are fraught with danger. New software solutions can provide great returns but can also cost millions of dollars and system implementations always contain some semblance of risk. Has the collective knowledge of the more experienced members of the team been distilled into an easy to follow step-by-step formula for success?
Are new merchants and replenishment buyers armed with best practice process maps to ensure they can more quickly deliver the results of a seasoned employee?
Are you measuring performance insuring consistent use of best practices across the enterprise?
If you answered ‘No’ to any of these questions, you have found an opportunity to achieve Process Excellence and drive cost savings and revenue growth without lengthy and potentially risky system change efforts.
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Process Excellence can be achieved by following four steps:
1. Process Mapping
2. Process Improvement
3. Change Management
4. Success Measurement
Process Mapping
Process Excellence begins with understanding the current processes used
at your company. Through interviews and observation, the steps currently
taken to accomplish functional goals are documented. This Means
understanding not only the published standards, but learning how these
standards are individually applied across teams? An accurate
understanding of this variation often uncovers the largest opportunities
for improvement. Consistency – not creation of new processes – can drive
the performance of all teammates to the high levels of the best
performers.
Process Improvement
Process improvement is defined as identifying
gaps between the current processes and the desired process and
modifying the current process to more efficiently achieve the desired
outcome. It is a more subtle and less drastic cousin to process re-
engineering; t. Once functional representatives and project sponsors
agree on the desired process, gaps are identified on the Current process
map. These gaps are activities, decisions or resources that must change
to better match with the desired process flow. The identification of these
activities needing change leads us to change management, the next step
in the Process Excellence process. Change Management Documentation 46
of an improved process or executive recognition of inconsistent
execution in itself does not improve results. Real people need to make
changes to their workday efforts. Even the best designed process
provides little benefit when the team implementing the process chooses
to take a different path.
Success Measurement Identifying and tracking key metrics serves two
purposes. Measurement of key activities quantifies the benefit realized
by the change and ensures the improved process is being followed. First,
the benefits of the change can be measured. This helps to justify the
time and expense incurred to effect the change. Identify metrics that
signify successful completion of the process and cannot be attributed to
other change efforts.
While this is often difficult, the ability to attribute success solely to
the Process Excellence effort enables you to claim the entire benefit.
Other higher level metrics such as sales or in stock % are easier to
measure, but their improvement often is a factor of several interrelated
efforts. Second, you can ensure that the processes remain consistently
applied by all team members.
Process Excellence for the Long Term
Process Excellence is a tool retailers can use to drive
gains while minimizing risk. It focuses on people and ensures you are
driving the maximum benefit from the team and tools. It is a journey
that never ends. As teams’ transition and new technology is introduced –
the Process Excellence effort can be re-energized. And, as teams
become familiar with the activities surrounding Process Excellence and
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key deliverables such as current and desired process maps are already in
place, subsequent efforts can be achieved with less time and effort.
Types of retailing: Consumers today can shop for goods and services
in a wide variety of retail organizations. These are store retailers, non-
store retailers, and retail organization. Perhaps the best – known type of
retailer is the departmental store. Retail – store types pass through stages
of growth and decline that can be described as the retail life cycle. A
type emerges, enjoys a period of accelerated growth, reaches maturity,
and then declines.
Levels of service: Conventional retail stores typically increase their
services and raise their prices to cover the costs. These higher costs
provide an opportunity for new store forms to offer lower prices and less
service. New store types meet widely different consumer preferences for
service levels and specific services. Retailers can position themselves as
offering one of the four levels of following services.
Self–service: Self – service is the cornerstone of all discounts operations. Many customers are willing to carry out their own locate – compare – select process to save money.
Self–selection: Customers find their own goods, although they can ask for assistance.
Limited service: These retailers carry more shopping goods, and customers need more information and assistance. The stores also offer services (such as credit and merchandise – return privileges).
Full service: Salespeople are ready to assist in every phase of the
locate-compare-select process. Customers who like to be waited on
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prefer this type of store. The high staffing cost, along with the higher
proportion of specially goods and slower-moving items and the many
services, results in high-cost retailing. By combining these different
service levels with different assortment breadths, one can distinguish the
four broad positioning strategies available to retailers,
Corporate Retailing: Although many retail stores are
independently owned, an increasing number are part of some form of
corporate retailing. Corporate retail organizations achieve economies of
scale, greater purchasing power, wider brand recognition, and better-
trained employees.
Marketing Decisions: In the past retailers held customers by
offering convenient location, special or unique assortments of goods,
greater or better services than competitors, and store credit cards. Today,
national brands are found in department stores, in their own shops, in
merchandise outlets, and in off-price discount stores.
In their drive for volume, national – brand manufacturers have
placed their branded goods everywhere. The result is that retail – store
assortments have grown more alike. Customers have become smarter
shoppers. They do not want to pay more for identical brands, especially
when service differences have diminished; nor do they need credit from
a particular store, because bank credit cards are almost universally
accepted.
Target market: A retailer’s most important decision concerns the
target market. Until the target market is defined and profiled, the retailer
cannot make consistent decision on product assortment, store décor,
advertising messages and media, price, and service levels.
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Product assortment and Procurement: The retailer’s product
assortment must match the target markets shopping expectations. The
retailer has to decide on product assortment breadth and depth. Thus a
restaurant can offer a narrow and shallow assortment (small launch
counters), a narrow and deep assortment (delicatessen), a broad and
shallow assortment (cafeteria) or a broad and deep assortment (large
restaurant). The real challenge begins after defining the stores product
assortment, and that is to develop a product differentiation strategy.
Services and store atmosphere: Retailers must also decide on the
services mix to offer customers:
Pre purchase services include accepting telephone and mail orders,
advertising, window and interior display, fitting rooms, shopping hours,
fashion shows, trade – INS.
Post purchase services include shipping and delivery, gift-
wrapping, adjustments and returns, alterations and tailoring,
installations, engraving.
Ancillary services include general information; check cashing,
parking, restaurants, repairs, interior decorating, credit, rest rooms, and
baby-attendant service.
The services mix is a key tool for differentiating one store from another,
so is atmosphere. Atmosphere is another element in the store arsenal.
Every store has a physical lay out that makes it hard or easy to move
around.
Price decision
50
Prices are a key positioning factor and must be decided
in relation to the target market, the product-and-service assortment mix,
and competition. All retailers would like to achieve high volumes and
high gross margins, but the two usually do not go together. Most retailers
fall into the high-mark up, lower volume group (fine specialty stores) or
the low-mark up, higher volume group (mass-merchandisers and discount
stores). Retailers must also pay attention to pricing tactics. Most retailers
will put low prices on some items to serve as traffic builders or loss
dealers. They will run storewide sales. They will plan markdowns on
slower-moving merchandise.
Promotion decision
Retailers use a wide range of promotion tools to generate
traffic and purchases. They place ads, run special sales, issue money
saving coupons, and run frequent shopper-reward programmes, in-store
food sampling, and coupons on shelves or at checkout points. Each
retailer must use promotion tools that support and reinforce its image
positioning.
Place decision
Retailers are accustomed to saying that the three keys to
success are location, location, and location. Customers generally choose
the nearest bank and gas station. Department-store chains, oil companies,
and fast food franchisers exercise great case in selecting locations. The
problem breaks down into selecting regions of the country in which to
open outlets, then particular cities, and then particular sites. Retailers can
locate their stores in the central business district, a regional shopping
51
center, a community shopping center, a shopping strip, or within a large
store.
1. Number of people passing by on an average day.
2. Percentage who entered the store.
3. Percentage of those entering who buy.
4. Average amount spent per sale.
Trends in retailing
Following are the main development; the retailers and manufacturers
need to take into account, in planning competitive strategies.
1. New retail forms and combinations.
2. Growth of intertype competition.
3. Growth of giant retailers.
4. Growing investment in technology.
5. Global presence of major retailers.
6. Selling an experience, not just goods.
7. Competition between store based and non-store based retailing.
Retail Marketing in India
Number of retailers
India has sometimes been called a nation of shopkeepers. This
epithet has its roots in the huge number of retail enterprises in India,
52
which totaled over 12 million n 2003. About 78% of these are small
family businesses utilizing only household labor. Even among retail
enterprises that employ hired workers, the bulk of them use less than
three workers. India’s retail sector appears backward not only by the
standards of industrialized countries but also in comparison with several
other emerging markets in Asia and elsewhere. There are only 14
companies that run department stores and two with hypermarkets. While
the number of businesses operating supermarkets is higher (385 in
2003), most of these had only one outlet. The number of companies with
supermarket chains was less than 10.
Retail sales Which amounted to about Rs.7, 400 billion in 2002, expanded at
an average annual rate of 7% during 1999-2002? With the upturn in
economic growth during 2003, retail sales are also expected to expand at
a higher pace of nearly 10%. In a developing country like India, a large
chunk of consumer expenditure is on basic necessities, especially food
related items.
Government policy
There has been vigorous opposition to foreign direct investment
(FDI) in retailing from small traders who fear that foreign retailing
companies would take away their business, lead to the closure of many
small trading businesses and result in considerable unemployment. Given
the political clout of the small trading community, because of their
enormous numbers, the government has barred FDI in retailing since
1997. Hence, at present, foreign retailers can only enter the retailing
sector through franchising agreements.
53
Organizational characteristics
Given the traditional and underdeveloped state of the Indian retail sector,
the organizational characteristics of retail enterprises are rudimentary.
Most of them belong to independent enterprises in the form of small
family businesses. Cooperatives have been present in India for several
decades, spurred by the encouragement given by the Indian Government,
which viewed the cooperative movement as an integral component of its
erstwhile socialist policies. However, since the 1990s, there has been a
reduction in government support for cooperatives.
Chi-Square Test
Chi-square is a statistical test commonly used to compare observed data
with data we would expect to obtain according to a specific hypothesis.
For example, if, according to Mendel's laws, you expected 10 of 20
offspring from a cross to be male and the actual observed number was 8
males, then you might want to know about the "goodness to fit" between
the observed and expected. Were the deviations (differences between
observed and expected) the result of chance, or were they due to other
factors. How much deviation can occur before you, the investigator, must
conclude that something other than chance is at work, causing the
observed to differ from the expected? The chi-square test is always
testing what scientists call the null hypothesis, which states that there is
no significant difference between the expected and observed result.
The formula for calculating chi-square = (o-e) 2/e
O = observed values
54
E = Expected values
The chi-square is one of the most popular statistics because it is easy to
calculate and interpret. There are two kinds of chi-square tests. The first
is called a one-way analysis, and the second is called a two-way analysis.
The purpose of both is to determine whether the observed frequencies
(counts) markedly differ from the frequencies that we would expect by
chance.
The observed cell frequencies are organized in rows and columns
like a spreadsheet. This table of observed cell frequencies is called a
contingency table, and the chi-square test if part of a contingency table
analysis.
The chi-square statistic is the sum of the contributions from each of
the individual cells. Every cell in a table contributes something to the
overall chi-square statistic. If a given cell differs markedly from the
expected frequency, then the contribution of that cell to the overall chi-
square is large. If a cell is close to the expected frequency for that cell,
then the contribution of that cell to the overall chi-square is low. A large
chi-square statistic indicates that somewhere in the table, the observed
frequencies differ markedly from the expected frequencies. It does not
tell which cell (or cells) are causing the high chi-square...only that they
are there. When a chi-square is high, you must visually examine the table
to determine which cell(s) are responsible.
55
When there are exactly two rows and two columns, the chi-square
statistic becomes inaccurate, and Yates correction for continuity is
usually applied. Statistics Calculator will automatically use Yates
correction for two-by-two tables when the expected frequency of any cell
is less than 5 or the total N is less than 50.
If there is only one column or one row (a one-way chi-square test), the
degrees of freedom is the number of cells minus one. For a two way chi-
square, the degree of freedom is the number or rows minus one times the
number of columns minus one.
Using the chi-square statistic and its associated degrees of freedom,
the software reports the probability that the differences between the
observed and expected frequencies occurred by chance. Generally, a
probability of .05 or less is considered to be a significant difference.
A standard spreadsheet interface is used to enter the counts for each cell.
After you've finished entering the data, the program will print the chi-
square, degrees of freedom and probability of chance.
Use caution when interpreting the chi-square statistic if any of the
expected cell frequencies are less than five. Also, use caution when the
total for all cells is less than 50.
56
DATA ANALYSIS AND INTERPRITATION
The process by which sense and meaning are made of the data gathered in qualitative research, and by which the emergent knowledge is applied to clients' problems. This data often takes the form of records of group discussions and interviews, but is not limited to this. Through processes of revisiting and immersion in the data, and through complex activities of structuring, re-framing or otherwise exploring it, the researcher looks for patterns and insights relevant to the key research issues and uses these to address the client's brief.
Materials which are collected and analysed by qualitative researchers in order to provide answers to the client's brief. In qualitative market research, data has traditionally taken the form of interview records (tapes and transcripts of interviews and group discussions) but increasingly includes other materials such as observations or relevant cultural material such as advertising, magazines, films and so on. The term 'data' is often disliked by qualitative market researchers since it has
57
highly quantitative research connotations; terms such as findings or research materials may be used instead.
From the questionnaire we are following the data and interpretation and the data with graphical representation by the charts and circles.
1. Which company drinks are available in the shop?
a) Pepsi b) coke c) Both
s.no Available in shop
No of respondents
Percentage
1 Pepsi 0 0%
2 Coke 80 73%
3 Both 30 27%
58
Interpretation:
From the above information we can understand that 73% of respondents
accepted that only coke brands are available in the retail outlets.
Remaining 27% of respondents accepted both coke and Pepsi brands are
59
available in the retail outlets. From this we can understand that majority
of retailers are preferring coke brands.
2. What are the coke brands available in the shop?
a) Thumps up b) maaza c) sprite d) coke e) all drinks
s.no Available in shop
No of respondents
Percentage
1 Thumps up 0 0%
2 Maaza 0 0%
3 sprite 0 0%
4 coke 0 0%
5 All drinks 110 100%
60
Interpretation:
From the above information we can understand that 100% of
respondents accepted that all the coke brands are available in their
retail outlets. From this we can understand that majority of the
retailers in Guntur district maintaining all the brands of coke.
61
3. Are you aware of credit schemes of the company?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 70 64%
2 No 40 36%
62
Interpretation:
From the above information we can understand that 64% of retailers
chosen ‘yes’ option. From this we can understand that retailers are aware
of the credit schemes of Coke Company. Remaining 36% of retailers
63
chosen ‘no’ option. From this we can understand that they don’t have
awareness of the credit schemes of Coke Company.
4. Are you aware of the incentives schemes of the company?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 80 73%
2 No 30 27%
64
Interpretation:
From the above information we can understand that 73% of
respondents chosen the ‘yes’ option. From this we can understand that
65
retailers getting good incentives from the coke company. Retailers are
increasing the company sales percentage. Remaining 27% of
respondents chosen ‘no’ option. From this we can understand that
retailers are providing lesser sales to the company then company
providing lesser incentives.
5. Satisfied with stock maintenance of coke brands?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 70 64%
2 No 40 36%
66
Interpretation:
From the above information we can understand that 64% of
respondents chosen ‘yes’ option. From these we can understand that 67
retailers satisfied with stock availability. Remaining 36% of the retailers
chosen ‘no’ option. Retail outlets are long distance from distributor’s
goo down. From this we can understand that respondents showing lesser
sales that’s why company stock providing alternate days are weekly
twice.
6. Satisfied with replenishment time of the company?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 50 46%
2 No 60 54%
68
Interpretation: From the above information we can understand that 46% of respondents
chosen ‘yes’ option. This revels that most of the retailers are satisfied the
69
replenishment time of the coke company. And Remaining 54% of
respondents chosen ‘no’ option. This revels that most of the retailers are
not satisfied with replenishment time. From this we can understand that
Company is not offering sufficient replenishment timing to the all
retailers.
7. Company is offering good credit polices?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 75 68%
2 No 35 32%
70
71
Interpretation:
From the above information we can understand that 68% of respondents
chosen ‘yes’ option. Remaining 32% of respondents chosen ‘no’ option.
From this we can understand that Majority of the retailers are increases
sales percentage of the company. Then company providing optimum
stock and gave the credit period to the retailers. Some of retailers don’t
have increased sales percentage of Coke Company.
8. I feel happy with discounts of company?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 40 36%
2 No 70 64%
72
Interpretation:
From the above information we can understand that 36% of respondents
chosen ‘yes’ option. From this we can understand that company offering
73
good discounts to retailers and who increases the sales that one get the
good discount from Coke Company. And Remaining 64% of respondents
chosen ‘no’ option because they do not increases a sales percentage of
coke company that’s why company not providing any discounts to
retailer.
9. I feel difficulty with maintaining optimum stock?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 60 55%
2 No 50 45%
74
Interpretation:
From the above information we can understand that 55% of respondents
chosen ‘yes’ option because those retailers not satisfied with optimum
stock maintenance. And remaining 45% of respondents chosen ‘no’
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option because retailers satisfied with coke optimum stock levels. From
this we can understand that majority of retailers outlets is longer distance
from distributor’s outlet.
10.Company is not maintaining good replenishment time?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 60 54%
2 No 50 46%
76
Interpretation:
From the above information we can understand that 54% of respondents
chosen ‘yes’ option. And because those retailers is not satisfied with the
replenishment time of the coke company. And remaining 46% of the
77
respondents chosen ‘no’ option. And because those retailers getting good
replenishment. From this we can understand that company is not
providing better replenishment time to the retailers.
11. Are you satisfied with credit methods of the company?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 35 32%
2 No 75 68%
78
Interpretation:
From the above information we can understand that 32% of respondents
chosen ‘yes’ option. And remaining 68% of the retailers chosen ‘no’
option. From this we can understand that majority of retailer’s shows
79
more sales to the company. Then company offering good credit methods
to the retailers.
12.What percentage discounts the company is providing?
a) 0-10% b) 11-20% c) 21-30% d) more then31%
s.no Discount range No of Respondents percentage
1 0-10% 60 55%
2 11-20% 20 18%
3 21-30% 30 27%
4 More than 30% 0 0
80
Interpretation:
81
From the above information we can understand that 55% of respondents
chosen (0-10%) discount. And after 18% of respondents chosen (11-20%)
discount. And remaining 27% of respondents getting (21-30%) discount.
From this we can understand that those retailers increase sales then
company providing better discounts percentages to the retailers.
13.Are you satisfied with discount percentage?
a) Yes b) No
s.no particulars No of respondents
Percentage
1 Yes 40 36%
2 No 70 64%
82
83
Interpretation:
From the above information we can understand that 36% of respondents
chosen ‘yes’ option. And the remaining 64% of respondents chosen ‘no’
option. From this we can understand that majority of respondents not
satisfied with discounts percentage of Coke Company.
14. Are you satisfied promotional schemes of the company?
a) Yes b) No84
s.no particulars No of respondents
Percentage
1 Yes 75 68%
2 No 35 32%
85
Interpretation:
From the above information we can understand that 68% of respondents chosen ‘yes’ option. And remaining 32% of respondents chosen ‘no’ option. From this we can understand that majority of respondents know the promotional schemes of what actually coke company providing to retailers.
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CHISQUARE TEST
Retailer satisfaction on geographical background and promotional schemes
NULL HYPOTHESIS (H0):
There is no significant difference on retailer satisfaction on geographical background and promotional schemes of retailers in both rural & urban areas.
Particulars Yes No Total expected value
Urban 40(38) 20(22) 60
Rural 30(32) 20(18) 50
Total observed values
70 40 110
Total expected value
70 40 110
INTERPRETATION:
H1: There is no significance difference between both
rural & urban areas, on rating for “promotional schemes and geographical
background of retailers” calculated chi-square value (x2) is 0.40 is less
than the chi square table value at 5% level of significance (df=2-1=1) is
3.84 hence null hypothesis is accepted.
87
Retailer satisfaction on geographical background and promotional activity
NULL HYPOTHESIS (H0):
There is no significant difference on rating for retailer satisfaction on geographical background and promotional activity on discounts by retailers in both rural & urban areas.
particulars 0-10% 11-20% 21-30% More than 31%
Total expected value
Urban 40(38.18) 10(13) 20(19.09) 0 70.27
Rural 20(21.83) 10(7) 10(10.9) 0 39.73
Total observed values
60 20 30 0 110
Total expected values
60 20 30 0 110
INTERPRETATION:
H1: There is no significance difference between both
rural & urban areas, on rating for “promotional activity on discounts and
geographical background” calculated chi-square value (x 2) is 1.72 is less
than the chi square table value at 5% level of significance (df=4-1=3) is
7.82 hence null hypothesis is accepted.
88
Retailer satisfaction on geographical background and stock maintenance
NULL HYPOTHESIS (H0):
There is no significant difference on rating for promotional activity of stock maintenance and geographical background by retailers in both rural & urban areas.
Particulars Yes No Total expected value
Urban 30(28.64) 15(16.36) 45
Rural 40(41.37) 25(23.63) 65
Total observed values
70 40 110
Total expected value
70.01 39.99 110
INTERPRETATION:
H1: There is no significance difference between both
rural & urban areas, on rating for “stock maintenance and geographical
background” calculated chi-square value (x 2) is 0.28is less than the chi
square table value at 5% level of significance (df = 2-1 =1) is hence 3.84
null hypothesis is accepted.
89
5.1. FINDINGS
The study reveals that majority of the retailers in Guntur district was
preferred coke brands.
The study elicits that majority of the retailers are maintaining
optimum product availability.
The study reveals that Coke Company is providing good awareness
about the credit schemes
The study elicits that retailer aware of the incentives of the coke
company.
The study elicits that majority of the retailers are satisfied with
stock availability.
The study reveals that company is not maintaining good
replenishment time period.
The study elicits that company is providing better credit policies to
the retailers of Guntur district.
The study reveals that majority of the retailers are not satisfied with
discount percentage offered by company.
The study reveals that majority of the retailers are not satisfied by
the replenishment time followed by the company
The study reveals that majority of the retailers are getting lower
discount percentage from Coke Company.
The study reveals that majority of the respondents are getting good
promotional schemes from Coke Company.
The study reveals that relation between geographical area &
promotional activity on both rural and urban areas from Coke
Company.
90
The study elicits that relation between geographical area &
promotional activity of discounts on both rural and urban areas from
Coke Company.
The study reveals that relation between geographical area &
promotional activity of stock maintenance on both rural and urban
areas from Coke Company.
5.2. SUGGESTIONS 91
The company is performing a detail demand survey at regular
interval to know about the unique needs and requirements of the
retailer.
It is suggested that the company should develop a proper feedback
mechanism process in terms of identifying and implementing the
retailer suggestions.
The company should focus of lunching more flavors and varieties
of soft drinks to get more profits.
It is recommended that the company should improve promotional
activities in terms developing the brand awareness among the rural
retailers in Guntur district.
It is recommended that the company should keep a eagle eye on the
distributors because in some cases their a chance of cheating the
rural retailers due to this good will of the company may be
damaged.
A strong watch should be kept on distributors also, because in
some cases they are found to be cheating the retailers and affecting
the goodwill of the COMPANY BRAND.
It is better to the company to develop an effective add campaign in
rural areas so that rural retailers & customers may get good
awareness of the company brands.
5.3. CONCLUSION
92
From the study we conclude that majority of the retailers in
Guntur rural & urban areas are satisfied with the most of the company’s
retailer’s schemes like discount rates, credit policies, incentive schemes
etc.
It is also found that coke brands are having good brand image in
the market study also highlights the rural retailer’s problems like
awareness regarding retailer schemes.
So it is better to the company to develop effective feedback
systems in terms of identifying the rural retailer problems and company
has to develop an effective mechanism for solving the retailer problems
quickly. So that gains good brand equity in the market.