Training Guide Mr. Chitresh Tiwari

Marketing Executive Manger

Advance Sales & Services

Shahnawaz AdilMBA 3rd semester

11001220143

Horizontal Expansion Strategy of Horizontal Expansion Strategy of Coca-Cola(Lucknow) Coca-Cola(Lucknow)

Contents Section 1: Company Profile.

Section 2: Profile of Organization imparting Training Section 3: Conceptual background of topic.

Section 4: Details of work completed

Section 5: SWOT analysis

Section 6: Conclusion

Section 1: Company Profile

INTRODUCTION TO COCA-COLA

* Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. * Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands.* The Coca- Cola Company began building its global network in the 1920s. Now operating in more than 200 countries. * The Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.”

In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion

MARKET SHAREMARKET SHARE:

Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.

NORTH AMERICA

LATIN

AMERICA

EUROPE &

MIDDLE EAST

ASIA &

OCEANA

AFRICA

30% 25% 22% 17% 6%

GLOBAL MARKET SHAREGLOBAL MARKET SHARE

MISSION:* To refresh the world.

* To inspire moments of optimism and happiness.

* To create value and make a difference.

VISION:

* Winning Culture

* Live our values

* Focus on the market

* Work smart

* Act like owners

* Be the brand

Coca-Cola India was the leading soft drink brand in India till 1977when it was forced to close down its operation by a socialist government in the drive for self sufficiency. After 16 years of absence, coca cola returned to India and witnessed a different culture and economic platform. During their absence, Parle brothers introduced a new type of cola called THUMS UP. Along with, they also formulated a lemon flavored drink, LIMCA, and mango flavored, MAAZA. In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main competitor (Pepsi). They presumed that with the tried and tested products of Parle they will be able to regain their throne in the Indian soft drink market. Pepsi having a 6 years head start helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola) to return to India.

Strategies to re-enter India

*In India 3 A’s must be applied Affordability, Availability and Acceptability.

*Coca-Cola competed with local drinks such as “Nimbu Pani”, “Narial Pani”, “Lassi” etc. and reached to a conclusion that competitive pricing was unavoidable. Since then they introduced a 200 ml glass bottle for Rs.5.

*Different advertising campaigns for different regions of the country. In the southern part, their strategy was to make Bollywood or Tamil stars to endorse their products.

* One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’.

Section 2

Profile of Organization imparting training

Advance Sales & Service Pvt. Ltd.

Adilnagar,KalyanpurLucknow

Advance Sales & Service Pvt. Ltd.

• Advance Sales & Service Pvt. Ltd. is a marketing and distribution, Franchise of Brindavan Bottlers Pvt. Ltd.

• Lucknow, Barabanki,

Lalitpur, Jhansi, Lakhimpur, Sitapur & Faizabad are the distribution and market area for Advance Sales & Service Pvt. Ltd.

Management Profile

• General Manager - Sanjeev Garg• Head of Sales(City)- Rajan Sharma• Head of Sales(Outer)- B.K.

Shrivastav• Marketing Executive Manager

– Chitresh Tiwari• HR Head – Manu Mehrotra• HR Executive – Pooja Chandwani

Distribution & Marketing of Advance Sales & Services.

Sales & Marketing Division

Sales Head Marketing Executive Manager Area Sales Manager Sales Executive Team Leader Sales Team

Distribution & Marketing of Advance Sales & Service.

Distribution Criteria

Direct Sales Distribution(DSD)

Total company authorized

Indirect Distribution(ID) By Agents

Distribution & Marketing of Advance Sales & Service.

Distributors Segment

1. Anchor Distributor (Investment 40-50 lakhs)

2. General Distributor (Investment 10-20 lakhs)

3. Spoke(Rural Area) (Investment 1-2 lakhs)

Section 3

Conceptual Background of Topic

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.

Reason for Expansion

→ The ultimate objective of coke is to acquire more customers 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 maintain its leadership in the soft drink industry.

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

• 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.

• Increase in market power over supplier and downstream market channels.

Section 4

Detail of Work completed

Objectives, Job profile, Data analysis & Interpretation, Findings ,Suggestions and Limitations

Objectives of the study

.To understand the concept of Horizontal Expansion with respect to Advance Sales and Services Pvt. Ltd.

.To develop the business , expand market coverage with respect to OYA scheme.

.The benefit of Horizontal Expansion for the company at retailers end(Potential Outlet).

Profile of Job Training

Convince the new retailers

with respect to OYA(Own Your

Asset) scheme of Coca-Cola,

Under the Advance Sales &

Services Pvt. Ltd. OYA as

apart of Horizontal Expansion

Strategy of Coca-Cola

(Lucknow).

Kalyanpur(Lucknow) was

subject area assigned for

marketing of OYA.

Number of Clients

• Total 30 retailers such as

FMCG Outlet, Beverage and

Restaurant, Medical stores

Cyber Café, Communication

Stores, Barber shop, etc of

Kalyanpur area were

visited for the new outlet

opening.

Data Analysis & Interpretation

Response NO Percentage

Yes 9 30% No 13 43% May Be 8 27% 30 100%

• 30% of retailers are interested in the OYA scheme of coca-cola.

• 43% of retailers are not interested in OYA.

• 27% retailers are interested but want start from next season as they are already doing business with Pepsi or due to end of peak season.

FINDINGS

• Most of the retailers who selling pepsico products refuse to keep coca-cola because of late delivery of orders.

• Pepsi marketing schemes are much better than coca-cola.

• Unavailability of regular stock is also reason for refusing coca-cola or OYA

• Brand image and customer preference of coca-cola is stronger than Pepsico.

• Coca-cola has better quality and range of products than Pepsico.

Findings• In past there was same product with different carret

scheme was presented before the retailers.

• The retailers interested in OYA scheme were.• D.K.Traders• Pandey Kirana Store• Shree Shyam Store• Shree Nathji Medicals• Shree Sai Stationery• Chunmun Tea Stall• Lucky General Store• Zubair Tea & Sweets

Suggestions• Overall distribution should be improved because

many of the retailers are not satisfied with company service .

• Company must provide free chilling equipment to the outlet where needed and also company should work out on the complains of Retailers

• Company can increase the sales when it considering more on retailers, their suggestions or complaints .

• Company needs to focus more on attractive retailers schemes as pepsico.

LIMITATIONS

• The study was restricted to kalyanpur(Lucknow) region only.

• The scheme OYA is less attractive for retailers as better schemes are offered by pepsico.

• The busy schedules of retailers also make difficulty for collection of data.

• The company’s tight credit policy for small and new retailers.

• Distribution route and marketing channels are less effective in delivering products to retailers.

Section 5 SWOT SWOT AnalysisAnalysis

Strength

• Strong band Image.• Strong market share.• Strong and reliable distribution network.• Modified and attractive

packaging.• Strong advertising campaign

and brand ambassdors.

Weakness

• Pricing strategy.• Lack of availability products in

peak season.• Tight credit policy.• Retailers are less aware about

schemes.

Opportunities

• Large Domestic market.

• Good rural market.

• Potential direct distribution.

Threats

• Intense competition.

• Dependence on bottling partners .

• Changing of consumer preference.

• Schemes of Pepsi are better than

coke.

Section 6 Conclusion

As far as journey with the company is concerned, I grasped lots of knowledge within two months Because many of the company officials has assisted and given me the valuable notes and experience of their life.

The primary objective of the my research is to analyze the horizontal expansion strategy of Coke and at the end of the research I found that there is requirement of changing the strategy for acquiring new customer for Coke but company should take care of its existing customer because they are the main instrument of promotion for any company so old customer should be fully satisfied with the company.

Conclusion

Thank you!