ON (IN KANPUR) OF FOR HINDUSTAN COCA-COLA BEVERAGES PVT.LTD., PANKI INDUSTRIAL AREA, DADA NAGAR KANPUR. SUBMITTED IN SUMMER TRAINING OF M.B.A. PROGRAMME OF LOVELY PROFESSIONAL UNIVERSITY PHAGWARA, PUNJAB. -: UNDER GUIDANCE OF :- MR. MANISH PUNDEER MOHD. FAISAL SUBMITTED BY: SHYAMAL MISHRA M.B.A. III SEMESTER 1
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7. Decorating Retailers shop by display board, dealer’s board etc.
CRITERIA FOR PROVIDING FREE CHILLING
EQUIPMENTS
With every 1-2 crates purchased daily or alternatively an
icebox is provided.
For an average consumption of 5-6 crates a visi-cooler of
4crates.
For a purchase of 7-8 crates daily visicooler 7 crates.
If purchase exceeds 8 crates, then 9 crates visicooler or deep
fridger is provided.
With every chilling equipment a steplizer is provided it may be of 1
KV or 5 KV.
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S.G.A PROVIDING COMPANIES
Whirlpool India Ltd.
Godrej G.E. Appliances Ltd.
Western Refrigeration Ltd.
Rockwel Industries Ltd.
All these industries are enlisted and approved by Coca-Cola.
PROMOTION BY THE COMPANY
All advertisement expenditure is incurred by coca-cola India, but only
D.P. Board, wall painting, S.G.A.’s etc. Company spends on it around 8-9 %
total sales company invested 305 crore rupees in advertisement Budget.
Radio.
T.V.
Hoardings.
Road signs.
Sticker.
Neon light.
Banners.
Newspaper.
Magazines.
Exhibition.
Posters.
Sponsoring local events.
SOME OTHER TECHNIQUES FOR PROMOTION OF
COCA-COLA COMPANY
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THESE ARE THE CANS WHICH LAUNCHED IN
BETWEEN OLYMPIC GAMES IN EVERY YEAR IN THE
PAST
Olympic Commemorative Cans
1928
1948
1964
1992
48
1996
49
50
ADVERTISING
Advertising is non-promotion of goods and services, by a sponsor (a
firm or person) who can be identified and who has paid for this
communication. This purpose of advertisement is to sell something a good
service, idea person or place, either now or later this goal, reached by setting
specific objective that can be expressed individual ads. Those are incorporated
into an advertising campaign recall again from the buying decision process
that buyers go through a series of stages from unawareness to target customers
to the next stage in the hierarchy say from awareness to interest.
Specific advertising objective will be dictated by the firm’s overall
marketing strategy. Typical objective are:
a. Support personal selling advertising may be used to
acquaint prospect with seller’s company and product,
easing the way for the sales force.
b. Improve dealer relations: wholesalers and retailer like to
see a manufacturer support its product.
c. Introduction new product: consumer needs to be
informed even about line extensions that make used of
familiar brand name.
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Bareilly beverage lays emphasis on advertising at the core centers.
They lay their banners and hoardings at the important places and see to it that
they do space on media.
The product like Thums Up, Fanta, Limca and Maaza belong to one
group i.e. coca-cola, advertise on nation side basis for its products, by hireling
time and space on media.
To promote the product and to create the awareness of the product
every year they are spending Rs.10/- per crate for the advertisement. They are
spending the amount for wall painting, dealer’s board, glow signs, hoardings,
banners, stickers, posters and buntings.
Advertisement plays an important role in the success of coca-cola
product since its first newspaper ad. In 1886 that red, coca-cola delicious
“Refreshing Exhilarating” Invigorating”. Advertisement is a key of
implementing a strategy over one hundred year old to trigger desire as offer
and in as many ways as possible.
ADVERTISEMENTS TARGETED BY COKE
To target various consumer segment of soft drink different add
featuring cricket star, cine star, pop star have been created.
1.Lisa Ray (famous model) in a very interesting add, which featuring
him bathing with sprite. Having a catching line “Sprite bujhaye only
pyass baki all bakwaas”.
2.Amir Khan & Ashwarya Rai (both cine stars), which targeted
younger generation. This add. Contained imagery of rugged and
romantic for 330 ml of coke. Theme “ Coca-Cola Ho Jay”.
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3.Another cola drink from coke i.e. “Thums Up”.
4.Limca leaving its old image of “Lime-n-Limoni” drink is been
shown as in the add. Featuring Shaif Ali Khan. A drink that could just
change the mood at time of disappointment lines. “Gala Gaya Sookh
Limca Key Liye Ruk”.
5.Fanta add. Showing children having lines “Bold Ho Jayo”.
6.A family giving new look to Maaza “ Tazza Mango”.
7.Diet Coke the exiting add. on the pool with fall swing calling “Taste
The Power Of One Calorie”.
8.Amir Khan in the as on Mini Coke very interesting and Roman tic
add.
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OBJECTIVES OF THE STUDY
The R.E.D. survey was done to find out the present status of Thums
Up, Coca-Cola, Fanta, Limca & Maaza in the retail outlets.
To find the receptivity of the brand among the retailers and consumers
particularly of eating & drinking, grocery store, and convenience
shops.
To study the distribution and marketing strategy of thums up, coca-
cola, fanta, limca, and maaza- the major competitor in this category.
To find out available opportunities in the market by finding gaps in
competitor’s penetration.
To collect data about the retailers that can be used for activating new
channels and merchandising opportunities.
To find out ways to increase the sales of the new launches in different
channels.
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Review of Literature :
K. T. Jagannathan Coca Cola India to expand.The Hindu.Tuesday, Jun 03, 2003.
Having seen a `modest profit' for the first time since it set foot in India,
multinational Coca Cola has trained its eyes on beefing up the per capita consumption
of soft drink in the country even as it is readying for a horizontal expansion into rural
areas.
Disclosing this in an exclusive interview with The Hindu here today, Patrick T.
Siewert , Group President (East and South Asia), said, "We will continue to focus on
profitability because we have invested nearly a billion dollar in India since our entry".
It had not repatriated any money back thus far. Asserting that "we need to see a return
on those large investments," Mr. Siewert, nonetheless, said, "we are taking a long
term view of that".
While declining to divulge the `modest profit figure' of its Indian operation in 2002,
he admitted that at least one-third of the profit was contributed by the decision of the
parent to write off the accumulated loss of over Rs. 2,000 crores. "Nearly two-thirds
of the profit are brought about by operational improvements that are driven by right
cost, execution and strategy," he claimed.
Fielding a range of questions, Mr. Siewert said the strategy of providing affordable
quality soft drinks had worked for Coco Cola. The focus of the company would be on
"building per capita consumption by making the soft drink an everyday affordable
item for the millions of people in India," he said.
The President saw a huge opportunity in rural areas. He said "the horizontal
expansion is still available to us" even though "we often talked about rural
expansion".
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Mr. Siewert asserted that the soft drink business, notwithstanding the negative
perception in the minds of some, had been driving the growth in the domestic market.
In this context, he pointed out that Coca Cola had been buying $300 million worth
raw materials from within the country. It had been the largest buyer of sugar in Tamil
Nadu and had been keeping the glass and crate industries ticking. It had also been
picking up close to 8 per cent of refrigerator capacity in the country. He reckoned that
every one direct job in the Coca Cola system had resulted in 30-40 odd related jobs
elsewhere.
Precisely because of the multiplier effect that the soft drink industry was capable of
generating, he wanted the States to set out the right investment climate. Mr. Siewert,
in fact, had a meeting with the Tamil Nadu Chief Minister this afternoon. So far, Coca
Cola had invested $10 million in India this year. About 45 per of it had flowed into
the South, he pointed out.
Asked if Coca Cola's thrust on horizontal expansion would see a market-specific
pricing of products, he said the current price — Rs. 5 for 200 ml, Rs. 8 for 300 ml, Rs.
38 for 1.5 litre and Rs. 43 for two litres — fitted well in rural markets as well. He said
`lower pricing' need not bring good for consumers all the time. In his reckoning, price
points should be supported by right cost positions and return on investment. Mr.
Siewert said all long term assets of the Indian subsidiaries were funded by equity and
the working capital needs by domestic debt. To a question, he said Coca Cola had
divested 49 per cent of the equity in favour of India investors. While declining to
divulge the name, he said at least 10 per cent had been picked up by employees,
suppliers and bottlers.
Mr. Siewert asserted that India and China were on top of Coca Cola's priority in its
global game plan. While the Chinese market was larger than India, the former was not
growing as fast as the latter.
Going forward, the company was proposing to open 1.50 lakh new outlets this year
and a similar number next year as part of its horizontal expansion strategy even as it
kept its eyes open for opportunities in new categories of beverages.
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Global Competition Policy Magazine. A Hard Landing in the Soft
Drink Market - MOFCOM's Veto of the Coca-Cola & Huiyuan
Deal . April 2009
China’s Ministry of Commerce (MOFCOM) vetoed the proposed acquisition
by Coca-Cola of Huiyuan, a company with an important presence in the Chinese fruit
juice market. This is the first time that MOFCOM has prohibited a transaction under
the Anti-Monopoly Law (AML), in effect since August 2008.
MOFCOM gave three reasons for blocking the transaction. First, in its view, Coca-
Cola might be able to leverage its dominant position in the market for carbonated soft
drinks into the fruit juice market. Second, MOFCOM found that the addition of the
Huiyuan brand name to Coca-Cola’s own fruit juice brand could increase entry
barriers. Third, MOFCOM expressed concern that the transaction could negatively
affect the ability of domestic small- and medium-sized companies to compete.
This paper critically examines several interesting aspects of MOFCOM’s prohibition
decision. In particular, it discusses the insufficient degree of transparency which
characterizes MOFCOM’s merger control regime at present. Then, an attempt to
analyze MOFCOM’s substantive antitrust reasoning in the decision is made. Finally,
the paper focuses on the actual or potential influx of non-competition policy
objectives into MOFCOM’s assessment.
G.Chandrashekhar A multi-faceted FMCGs.Business Line. Monday,
May 03, 2010
Maize or corn is by far the largest cereal FMCG grown around the world. In the last
three years, global FMCG output averaged 800 million tonnes. The US is a dominant
producer and consumer.
Traditionally, it is used for humans and feed for livestock and poultry. Industrial uses
include making of starch. In recent years, with emergence of bio-fuels, corn is used
for production of ethanol for blending with gasoline. The new demand segment has
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helped expand corn utilisation, but tightened availability of the cereal for the
traditional uses as food and feed.
India ranks among the top 10 of world's maize producers. Indeed, in our country,
maize is an exceptional success story among generally poorly performing cereals.
Acreage and output have been steadily rising. Currently, this coarse grain is cultivated
in about 8 million hectares and the yield is approximately 2.3 tonnes a hectare. Less
than a quarter of the planted area is irrigated.
Although the cereal is produced virtually across the country, Andhra Pradesh,
Karnataka and Rajasthan are among the top producing States. Cultivated mainly in the
kharif season, maize recorded output of 18.9 mt in 2007-08 and a record 19.7 mt in
2008-09. There is tremendous scope for raising yields through improved input
management and agronomic practices. The crop is susceptible to vagaries of
monsoon. No wonder, total production in 2000-10 declined to 17.3 mt following
inadequate precipitation last year.
In the US, introduction of genetically modified corn (Bt corn) has helped raise yields
and cut losses arising out of pest and disease attacks. India is an occasional exporter
of maize to the world market; but the volumes are modest. Rising domestic demand
from food, feed and industrial sectors has resulted in tightening availability and firm
prices. Going forward, a robust growth in the livestock and poultry industry is sure to
translate into higher demand for feed corn. Some reports project such requirement at
30 mt by 2020.
Obviously, to ensure future self-sufficiency, India needs to plan to raise production
through productivity increases. It calls for planning and investment. Higher
production must come not from horizontal expansion of acreage but from vertical
growth in yields. But, there are challenges. Land availability and water shortage are
likely to be constraining factors. Worse, it is said that Indian maize is at the limit of
heat tolerance. In the event, global warming and climate change can potentially affect
yields that are even otherwise low by world standards.
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We need to start researching heat-tolerant and drought-tolerant varieties. The user
industry, mainly poultry and animal feed industry, can contribute to strengthening
maize production and productivity.
Maran invites Japanese textile cos to India.Business Line.Thursday,
Jul 23, 2009
To diversify textiles and clothing exports and to reduce dependence on the US and EU
27, the Government is promoting exports to South East Asia under its ‘Look East
Policy’.
The Minister of Textile, Mr Dayanidhi Maran, has invited the Japanese textiles
industry to collaborate with the Indian textiles industry in manufacturing of fabric and
garmenting, setting up of greenfield units in textiles machinery, manmade fibre and
yarn and create brand equity with Indian apparel companies.
He inaugurated the Indian pavilion at Japan’s premier International Fashion Fair
earlier.
Mr Maran was addressing the business meet hosted by the Japan-India Business
Cooperation Committee on ‘Current status of Growing Textiles Industry and
investment opportunities’ in Tokyo.
During the interaction with the top 50 Japanese businessmen, which included many
from the textiles industry, the Minister apprised them of various advantages in
investing in India, particularlyin the textiles sector, which has a highly skilled
workforce, high capital-employment ratio and immense potential to promote
employment, and a strong and diverse raw material base.
“India is the largest producer of jute, second largest producer of cotton and man-made
fibre and yarn, and third largest producer of silk. India has a vertical and horizontal
integrated textiles value chain, and represents a strong presence in the entire value
60
chain from raw material to finished goods. The average labour cost in India is $ 0.7 a
hour compared to $ 20 a hour in Japan,” he added.
Outlining the investment scenario in the Indian textiles sector, Mr Maran said that
investment is expected to increase from $ 22.3 billion in 2004-08 to $ 30.9 billion by
2010.
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R.E.D CONCEPT
ABOUT THE R.E.D SURVEY
The survey named as R.E.D. (RIGHT EXECUTION
DAILY).
The survey has been conducted to check the cooler
management, availability of products & activation
of coca-cola in various outlets.
The survey was based on three topics :-
Firstly, I have to check the cooler management i.e.
the cooler that was provided by the company to the
customer, are properly managed/working or not.
And lastly the most important aspect of cooler
management was the brand order.
Secondly, I have to check the availability of the
product i.e. whether the product is available to the
customer or not.
Lastly, I have to check the activation, which is a
very important because activation helps to boost the
sales. Activation is done through boards i.e. glow
sign. DPS, Flanges and Combo boards. Mostly
combo boards are given to the E&D outlets. And is
very helpful in attracting the customers. Rack with
header is provided to the Grocery outlets, which
should be fully charged.
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MARKET SEGMENTATION
CHANNELS
Which type of outlet is this like E&D (Eating & Drinking), GROCERY, or CONVENIENCE?
E&D : Like restaurant must have 5 tables with chairs.
GROCERY : Like general store.
CONVENIENCE : Like Pan Shop.
CLASSES
Which class outlet has like BRONZE, SILVER, GOLD, or DIAMOND?
BRONZE : Those outlets, which sells less than 200 carets per year.
SILVER : Those outlets, which sells 200-499 carets per year.
GOLD : Those outlets, which sells 500-799 carets per year.
DIAMOND : Those outlets, which sells 800 & above carets per year.
INCOME
Whoever costumer comes on shop which income class they belongs like high Income, medium Income, low Income.
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R.E.D.
(RIGHT EXECUTION DAILY)
OUTLET WISE DISTRIBUTION OF R.E.D
CHANNEL CLASS LOCALITY INCOME
GROUP
Convenience Diamond High
Ex –Pan shop, P.C.O etc. 800c/s sale
Grocery Gold Medium
Ex – General store, 500-799c/s sale Provision store etc.
E&D (Eating and Drinking) Silver Low
Ex – Restaurant, Hotel etc.
PRE-SALE CONCEPT
This is the new concept that had started from the year 2007. In the Pre-Sale the company takes order one day before and accordingly company
delivers their products for each route.
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What is Horizontal Expansion?
Expansion of business capacity through the absorption of facilities or
buildings as well as through the acquisition of new equipment to handle an increased
volume in sales in which the business is already engaged. In microeconomics and
strategic management, the term Horizontal Expansion describes a type of ownership
and control. It is a strategy used by a business or corporation that seeks to sell a type
of product in numerous markets. Horizontal Expansion in marketing is much more
common than Vertical Expansion is in production. Horizontal Expansion occurs when
a firm is being taken over by, or merged with, another firm which is in the same
industry and in the same stage of production as the merged firm, e.g. Pepsi has
adopted strategy of Vertical Expansion by which Pepsi wants to improve it’s sale
from Coke monopoly outlets, means Coke’s monopoly outlets are being taken over by
Pepsi now in this condition to improve it’s sale Coke need to open new outlets which
is called Horizontal Expansion Strategy. A monopoly created through Horizontal
Expansion is called a Horizontal Monopoly.
This is the expansion of a firm within an industry in which it is already active
for the purpose of increasing its share of the market for a particular product or service.
Reason Of Horizontal Expansion?
The ultimate objective of coke is to acquire more customer and serve them
properly. While doing Horizontal Expansion take care to the competitor’s strategy.
The main competitor is PEPSI, who has opted Vertical Expansion to generate more
sell however Coke do not believe on Vertical Expansion because Vertical Expansion
has limited preview so COKE is great believer in Horizontal Expansion and this
strategy helped to the company to aintain its leadership in the soft drink industry.
India is a big country having diversified taste and appearance and same
character is reflected in their demography. Horizontal Expansion helps the company
to serve the more people and more customers touch point because in the waste
country many customers commutes.
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Benefits of horizontal expansion:
Provides Incremental Volume & Revenue for Business
By horizontal expansion there will be more outlets of our product In the market
which will sell our product in more quantity. This will generate incremental revenue
for the business.
Helps Improve Route Productivity
There are pre determined routes through which product is transported and
delivered at the coke outlets. If we open more outlets on the routes it will increase the
productivity because more outlets will be covered and more product will be delivered
with a negligible increase in time and efforts. Hence it will improve productivity of
the route
Improves Profitability of Our Distributors Expenses on routes and delivery of
product are incurred by the distributers. Opening new outlets will give more revenue
to our distributors also. With the increase in route productivity will improve
profitability of the distributors.
Reduced Dependence on Large Customers, We know that coke products have a
very good demand. To comply with this we have to provide large amount of supply.
In case we have few outlets a large amount of stock is gathered at few retailers. In this
case they become monopolistic and demand many things like coolers refrigerators
discounts margins etc. from the company. So it is very necessary to reduce
dependence on large retailers by opening new outlets.
Increase market visibility Selling at more outlets give more market visibility of
the product which gives higher product recognition and brand value to the products.
Economies of scale
Economies of scope
Increase in market power over supplier and downstream market channels.
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Advantage of horizontal expansion over vertical expansion:
Both expansion techniques are meant for increasing sales volumes. But in horizontal
expansion company can earn more profits by spending less. Let’s see the profit story
of horizontal expansion.
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RESEARCH METHODOLOGY
This research involved a study, which was descriptive in nature it basically
aims at gathering data about how the coca-cola scheme playing in the mind of
shopkeepers & consumer.
METHODS OF DATA COLLECTION
THERE ARE TWO TYPES OF DATA
1. Primary data
2. Secondary data
1. Primary data collection : Primary data can be collected by three
methods;
a) Observation
b) Experiment
c) Surveys
But here, only surveys method of data collection is preferred which is very
suitable to reach the researcher motto.
A. Research instrument : Printed Questionnaire
was used as the research instrument to collect the
required information.
B. Area of surveys : The survey was conducted in
different location of Kanpur city.
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Sampling plan: sampling plan consists of
I. Sampling unit : The retailer of Grocery shop,
general store, betel shop, and medicine store was
selected from different places of kanpur
II. Sampling size : 250 Outlets.
III. Sampling procedure : Simple random sampling
procedure was followed.
IV. Sampling method : Data were collected by retailer
survey. The retailers are directly contacted and
interviewed at their retail counter.
2) Secondary data collection : As secondary data were not
available with shopkeepers as well as stockiest, so these were
collected from company records.
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ANALYSIS OF DATA
DATA ARE COLLECTED FROM DIFFERENT LOCATION OF KANPUR
LIKE:
1. LALBANGLA
2. JAGAI PURWA
3. OM PURWA
4. SWAROOP NAGAR
5. JAJMAU
6. SHIVKATRA
7. HARZENDRANAGAR
8. K.D.A. COLONY
9. DEFENCE COLONY
SURVEY ANALYSIS
THE SURVEY WAS CONDUCTED IN DIFFERENT LOCATION
OF KANPUR.A TOTAL SURVEY OF 250 OUTLETS WAS CONDUCTED.
SIZE OF VISI-COOLER IN 250 OUTLETS
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Here 82% Retailers are having 6 shelf Freezer,7% Retailers are having De-
Freezer, 8% Retailers are having 8 shelf Freezer, 1% Retailers are having 4 shelf
Freezer & 2% Retailers are having Double Door Freezer.
IS PRE-SELLING GOOD OR THERE IS SOME GAP AT THE
DELIVERY TIME OF THE PRODUCTS?
1.GOOD2.GAP
So 200 respondents say that Pre-Selling Concept of Coca-Cola is good while
50 respondents are saying that Pre-selling concept of Cocal is not goodbecause of
distribution system.
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LEADING BRAND OF THE COCA-COLA COMPANY ACCORDING TO THEIR PREFERENCES
So among all the products of coca-cola 63% market covered by Thumsup, 14% market covered by Sprite, 8% market covered by Mazza, 7% market covered by Coke, 6% market covered by Limca & 2% market covered by Fanta.
CHANNEL OF THE COCA-COLA COMPANY CONSIDERING SURVEYED (250) OULETS.
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OULETS BELONGS TO WHICH CLASS MADE BY THE COMPANY?
INCOME GROUP OF THE OUTLETS.
Here 54 % Market covered by high income groups which includes Diamong & Gold Classes, 31% Market covered by Medium income groups which includes Silver Class & 15% Market covered by low income groups which includes Bronze Class.
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MARKET SHARE OF COCA-COLA COMPANY COMPARING WITH PEPSI COMPANY
78
CONCLUSION
EVERY THING IN THIS WORLD IS MADE TO UTILIZE PROPERLY
BUT IT SHOULD BE REACH AT THE PROPER PERSON OR TO THE
PROPER UTILIZED AREAS. OTHERWISE THE VALUE ADDED TO
THOSE THINGS BECAME IN VEIN.
AS THERE IS A PROVERB THAT,
“FAR FROM EYE, FAR FROM HEART”
THUS MARKETING ROLE PLAYS A VERY IMPORTANT ROLE IN
ACHIEVING THE OBJECTIVES OF A COMPANY. UNDOUBTLY,
VALUE UTILITY IS CREATED BY THE MANUFACTURE OF
PRODUCT OR SERVICE BUT TIME AND PLACE UTILITIES ARE
CREATED BY MARKETING ROLE. ACCORDING TO DRUCKER,
“BOTH THE MARKET AND THE DISTRIBUTION CHANNELS ARE
OFTEN MORE CRUCIAL THAN THE PRODUCT”. THEY ARE
PRIMARY: THE PRODUCT IS SECONDRY. IN AN ECONOMY LIKE
THAT OF INDIA, WHERE MARGINAL SHORTAGES CAN LEAD TO
DISPROPORTATION DISTORTION IN PRICES, A DEPENDABLE AND
EFFICIENT DISTRIBUTION SYSTEM IS VERY MUCH ESSENTIAL.
THE DISTRIBUTION SYSTEM CREATES A VALUE ADDED TO ALL
MOST ALL PRODUCTS.
ALL FROM THE ABOVE STUDY NOT WITHSTANDING ITS
RESTRUCTING EFFORTS PEPSI IS STILL FAR AWAY WITH ITS
GREAT COMPETITOR LIKE COKE.
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FINDINGS
THE MOST POPULAR FLAVOUR IN THE MARKET IS THUMS
UP.
COCA-COLA IS MARKET LEADER AND PEPSI IS THE
MARKET CHALLENGER IN THE WHOLE MARKET WHERE I
HAVE SURVEYED.
FROM THE COCA-COLA PRODUCTS THUMS UP AND THE
PEPSI PRODUCTS DEW IS THE HIGHEST SELLING IN THE
MARKET.
COCA-COLA IS THE MARKET LEADER IN OVERALL
MARKET.
IN SOME AREAS LIKE LAL BANGLA THE SUPPLY OF PEPSI IS