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Study on RED concept and market availability and
purity of Coca-Cola company products inNAJIBABAD city
AtTraining Institute
Submitted in partial fulfillment of the requirement of the degreeof
BACHELORS OF BUSINESS ADMINISTRATIONAffiliated from
H.N.B. Garhwal University, Srinagar
Submitted by-
Rahul Kumar
Marketing
2010--2013
Approved Approved
Mr.HarshArora Mrs. DebolinaHazarika
DEPARTMENT OF MANAGEMENT
INSTITUTE OF TECHNOLOGY & MANAGEMENT
DEHRADUN
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ACKNOWLEDGEMENT
At the very outset, I would like to acknowledge withimmense gratitude the support and guidance of some peoplewithout whom the project could not have been completed. Alsothanks to them, I learnt a lot more additional things than that justrestricted to my project.
First of all I would like to thank my project guide Mr. Harsh
Arora (Designation) for his support and patience with medespite him being hard pressed for time.
I am thankful to (companys profile) for providing me with
the wonderful opportunity and allowing me to take this study.
Also I would like to thank the faculty guide of my college
(facultys name) who guided me in my project.
I would also like to thank (other members of your traininginstitute who helped you out in completion of your projectreport.)
Last but not the least I would like to thank my parents whohave always showed their full faith in me, and are the biggest
source of my encouragement and guidance.
Students nameRahul kumar
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CANDIDATES DECLARATION
I hereby declare that the work for the project Report entitledStudy on RED Concept and market survey on availabilityandpurity of coca-colaproducts is completely done by me, based on
my own work conducted in training institute for the partialfulfillment of my Bachelors of Business Administration.Admittedly I have received suggestions and guidance from myguides.
(Signature)Rahul kumar
BBA
(2010-2013)
PREFACE
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The summer training programs are designed to give the practical
knowledge of corporate world. Training is usually meant for such
vocations where advanced theoretical knowledge is to be backed up by
practical experience on the job and it is because of this reason that
summer training programs are designed. So, that the future manager
becomes ready to take the future responsibilities.
I also have been privileged enough to join Coca Cola- one of the biggest
brand in beverages in the world.I have achieved a lot of experience and confidence over the past eight
weeks which will help me to take the future responsibility on my
shoulder.
During this period, I was asked to find out the Execution mapping in
Red-outlet of coca cola. In the training program I had tried my level
best to arrange the work in systematic and chronological way.
This Endeavour shall provide the coca cola marketing department, an
idea about market condition. Therefore, it is hoped with all sincerity that
this work shall be of definite use to the organization.
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HCCBPL HCCBPL
INDEX
CHAPTER 1-Rational of the study
CHAPTER 2- RED (Right Execution Daily)
Objective of studyScope of studySignificance of the studyMy role in project RED
CHAPTER-3 Company ProfilesConclusionFindings
FactsSuggestionsHistory of Coca colaCoca-Cola in India
CHAPTER-4Industrial Profile
Soft drink Industry In India
Coca-Cola in IndiaVision of coke in IndiaMission of coke in India
CHAPTER-5Product Profile
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Different brands of the CompanyBrand Tagline
Brand Ambassadors Detail of Brands
CHAPTER -6 Competitive Areas
Competitive area among Coke & PepsiAdvertising
Brand ambassadors & TV CommercialsPromotion by the company
CHAPTER -7Marketing Departments
Marketing departmentDistribution NetworkSales promotion techniques of the company
Criteria for providing free chilling equipmentS.G.A providing company
CHAPTER-8Methodology
Research methodologyPGP PlanPre Sale Concept
CHAPTER -9
SWOT analysisPush & Pull Strategy
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CHAPTER -1
RED CONCEPT
RED stands for Right Execution Daily. It is a survey method for
the company to know their position in the market.
ABOUT RED
To check the availability of the visi cooler provided by the
company to the retail outlets for their products.
To check the activation in various outlets.
To check the branding order of the various products in the
cooler.
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Survey has done in the four topics-
Impurity
Brand Order
Availability
Activation
IMPURITY
There should be no impurity in the visi cooler of the company.
Impurity here refers to that brand which is presented in the visi
cooler other than cokes product. Therefore not other product of
any other company may not be in the cooler.
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BRAND ORDER
The company has given a brand order to the market developers
to arrange the different brands in a specific order in the cooler.
The order should be in such a way-
Coca cola
Thumps up
Sprite
Limca
Fanta
Maaza
Kinley
Pet & Juice
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AVAILABILTY
Availability is done according the type of outlet. There are four
type of outlet mentioned below. According to this market
developer has to ensure the availability of the products in the
particular outlet.
ACTIVATION
Activation is important because it helps to boost the sales of the
company. it is done through the Glow sign, Shelf display,
flanges. Combo boards, Table tops .This boards usually gives to
the E&D outlets .It helps to attract the customers. Rack with
header is provided to the grocery stores.
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Activation Elements
Market developer must ensure that all these activation elements
must available at all the outlets. Detail of activation elements
must available at GROCERY STORES:
1.WARM DISPLAY RACK
2.SHELF DISPLAY
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SHELF DISPLAY
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DISPLAY OF RACK VISI COOLER
OPTIONAL ELEMENTS:-
1.STANDEE
2.SIX MOBILE HANGER
3.VISI COOLER BRAND STRIP
4.WARM DISPLAY RACK
5.TABLE TOP RACK
6.TENT CARD
TYPES OF OUTLETS
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The company has divided their outlets on the basis of the following
criteria-
Volume
Channel
Income group
1. VOLUME
There are four types of outlets according to the volume of sales of the
outlet-
Diamond - 800>C/s & above per year
Gold - 500-799C/s per year
Silver - 200-499C/s per year
Bronze -
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2. CHANNEL
(A) GROCERY STORE
Grocery (customer profile): Store stocking a variety of regular uses
household items. The channels provide an opportunity for penetration as
it propels home consumption.
It includes all kirana stores, juice, departmental stores, supermarkets,
provision stores etc.
Necessary Availability - 2 liter and 300ml
(B) EATING & DRINKING CHANNEL 1
Eating and Drinking Channel: Outlets range from the high-end
restaurants to the smaller dhabas. These outlets offer multiple
opportunities to effect sales as people usually order something to drink
along with food. It includes
- Restaurants
- Bars and Pubs
- Dhabas
- Cafes
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(C) EATING & DRINKING CHANNEL2
It includes bakery, sweet shops, tea shops, soft drink shops and juice
centre.
(D) CONVENIENCE CHANNEL
Pan/bidi shops (customer profile) : This segment includes PAN BIDDI
outlets that stock cigarettes, mint, confectionary. It covers STD/ISD
phone booths, travel channel etc. Small outlets that mainly sell 200ml or
300ml bottles. They may also sell 600ml.
3. INCOME GROUP
According to the income group of the area-
Low- Those outlets where low income customer comes.
Medium- Those outlets where medium income customer comes.
High- Those outlets where high income customer come
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1. RATIONAL OF THE STUDY
Sales and distribution is an integral part of marketing. Here, Coca Cola
the leading brand in soft drinks worldwide. Coke has maintained its
brand image with high precision. The marketing strategy of Coke is very
stringent than others. The main features in their marketing by their
offerings and its sales and distribution.
Its my gratitude to work with Coca Cola company specially in
marketing department. I have been placed their in sales and distribution
department for my internship. The research work was not so easy as
Coca Cola is very strict in their marketing policy.
In the beginning the main reason for conducting this study was to know
the proper allocation of distribution to the suppliers and also to know
about the products sales.
Further, it is to understand the availability of the product and to check
out that there is the proper advertising of the product and also to know
the working condition of the visi cooler provided by the company.
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Also to know the various scheme provided by the Coca Cola is really
applied in the market or not. And to compare the schemes with Pepsi
products.
The study is done to understand the problem of the retailers, and
understanding the pre-sale concept.
Thus, these were the main reasons for conducting this study.
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CHAPTER -2
2. RED (RIGHT EXECUTION DAILY)
OBJECTIVES OF STUDY
The main objective of this RED project is to increase the sales of
The company.
To advertise the various products of the company.
To find out the present sales status of Thumps Up, Coke, Sprite,
Limca, Fanta,
Maaza at the retail outlets in the area..
To collect data from retailers for the activation of new channels
of distribution.
To study the pre-sale concept of the coke.
To ensure the availability and visibility of the product.
To analyze the effect of scheme
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SCOPE OF THE STUDY
By this study company can know its growth.
This study helps the company to know their actual position in the
market.
RED helps to find out the promotion activities of the company and
help to make relevant changes according to their rivalry company.
This study ensures the availability of the product in the market.
The study helps to fond out the problem of the counter and to find
out the requirement for more sales.
RED helps to maintain the outlets in a well designed way to attract
the consumers.
SIGNIFICANCE OF THE STUDY
This project is helpful to find out the sale trends of the cokeproducts and its
effect on consumer value and satisfaction.
This study provides an insight to the company that what kind ofstrategy must be
adopted in order to increase the sales and satisfaction o the consumer.
This project directly deals with the interaction of different kind ofpeople.
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MY ROLE IN PROJECT RED
IMPLEMENTATIONFirst and foremost task for me was to
implement the project in the given area with the support of MDs
(MARKET DEVELOPER). Various norms for different outlets had been
fixed but their implementation was very important. Different areas were
assigned to me in which I implemented RED and these areas are furthervisited by various higher officials of the organization.
I measured the performance of sales team and distributors (under
RED) in outlets with respect to all parameters of execution.
I did scoring on the scoring sheet.
The scoring sheet was provided on the basis of which scoring can be
done. Scoring is done out of 100 marks and they have been
further divided in 3 components
1. VISI COOLER - 30 points
2. AVAILABILTY - 50 points
3. ACTIVATION20 points
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MARKET AUDITING (TRACKING
PERFORMANCE)Tracking performance of the MD of
corresponding area was also my responsibility. I had to score him on
fixed norms (RED SCORING SHEET) and also give the feedback on his
performance.
FINDING LOOPHOLESFinding loopholes in the system like
absence of co-ordination between MDs and SALES TEAM and report
to higher officials (Mr. Harsh Arora)
BRAND CONTACT- I had to interact regularly with shopkeepers to
know their problem and try to solve them. If I could solve them then I
reported them to my company guide, else he suggested me thealternatives, and I also took out the orders from retail outlets and to
check out the activation.
AVAILABILTY - I also need to give company weekly availability
report of various
brands.
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CHAPTER - 3COMPANY PROFILES
FINDINGS
According to the demand of outlet owners, delivery of products
are not made available in the outlets.
Efficient brands of cocacola are not available in outlets.
Sales people and delivery persons do not visit the outlets on a
regular basis.
Advertisement materials are not available in the right time at the
rightplace i.e. Different Channels like Grocery, Convenience,
E&D.
Many outlet owners have complains on improperly working
visicooleri.e. its cooling Capacity is low or its lights are not
working.
Improper management is seen as No mechanics visit the outlets
despite of Complaints issued by outlet owners.
Visicoolers are not placed at their Prime locations in many outlets
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Many outlet owners express deep in satisfaction towards coca-cola
as they do not get any Prize or Cash discount as they receive from
other b companies.
FACTS
The most popular flavor is Thumsup in the whole market.
Coca-Cola is the market leader and Pepsi is the market challenger.
Thumsup has the highest sales from the Coca colas side and from
the Pepsis side mountain Dew has the highest sales.
Aquafina has more sales then Kinley in mineral water segment.
Pepsi provides more schemes then Cocacola.
Sprite has the fastest grownup brand in the clear lime segment in
the recent years.
In the off season when the sale is reduced retailers want more
schemes.
Minute maid has not getting good response from the market.
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CONCLUSION
RED is a worldwide project of COCA COLA Company. This project
is playing a very important role for the company. With the help of
this project, sale of the company has been increased. Because in
this project there is one market developer who has to ensure that
Visicooler must be on prime location, all brands must be available,
all brands must be displayed in brand order i.e. COLOJK. All the
activation elements like warm display rack, table top rack,
standees etc must be available at all outlets come under RED. All
these elements help the company in increasing the sales because
JO DIKHTA VO BIKTA HAI
Definitely when
sales increase then profits also increases. With the help of this
project company has increased its sale in Kanpur region and also
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company can measure or check the performance of each retailers
working all over the world with COCA COLA COMPANY.
SUGESSTIONS
Delivery position should be maintained to get good return from the
market.
The company must try to make different brands of Coca-Cola
available at every retail outlet whether it is large or small,
otherwise the consumer may go for substitute.
Sales People and delivery persons should properly monitor the
market whether stocks are available and are properly utilized in the
market or not.
We can provide them beautiful display racks, tablemats, menu-
cards etc, containing the trademark and brand name of the
company.
Display material should be provided to the retailers on more
regular basis to increase the sales level.
Maintenance work of refrigerator; i.e. purity must be improved.
The company should take steps to replace damaged or unsellable
Coca-Cola goods frequently from the retailers.
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The Company employees should make direct contact with the
consumers, so that they may aware with real situation of the
market and consumers attitude towards the product. For this they
can arrange awareness camps in different locations.
At every petrol-pump we should install Fountain Machine. It will
be helpful in generating impulse purchase and also as awareness
about the products of the company among the consumers.
HISTORY OF COCA-COLA
The world has changed in many ways since pharmacist; John Smyth
Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta,
Georgia. The name and the product mean so many things to hundreds
ofMillions of consumers around the globe. Coca-Colaproducts are
served more than 705 million times every day, quenching the thirsts of
consumers in more than 195 countries in every climate. That's a long
way to come after such a modest beginning...
May
1886
- Pemberton concocted caramel-colored syrup in a three-legged
brass kettle in his backyard. He first "distributed" the new
product by carrying Coca-Cola in a jug down the street to Jacobs
Pharmacy. For five cents, consumers could enjoy a glass of
Coca-Cola at the soda fountain. Whether by design or accident,
carbonated water was teamed with the new syrup, producing a
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drink that was proclaimed "Delicious and Refreshing." Dr.
Pemberton's partner and bookkeeper, Frank M. Robinson,
suggested the name and penned, in the unique flowing script that
is famous worldwide today, "
1886 - Sales of Coca-Cola averaged nine drinks per day. That first year,
Dr. Pemberton sold 25 gallons of syrup, shipped in bright red
wooden kegs. Red has been a distinctive color associated with
the No. 1 soft drink brand ever since.
1891 - Atlanta entrepreneur Mr. Candler had acquired complete
ownership of the Coca-Cola business for $2,300. Pemberton was
forced to sell because he was in a state of poor health and was in
debt. Within four years, Candler's merchandising flair helped
expand consumption of Coca-Cola to every state and territory.
1893 - In January "Coca-Cola" was registered in the U.S. Patent office.
1917 - 3 Million Coke's sold per day. "COCA-COLA" is the worlds
most recognizedtrademark.
1919 - The Coca-Cola Company was sold a group of investors for $25
million.
1923 - The Coca-Cola Company was sold after the Prohibition Era to
Ernest Woodruff for 25 million dollars. He gave Coca-Cola to
his son, Robert Woodruff, who would be president for six
decades.
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Woodruff's leadership took the business to unrivaled heights of
commercial success, making Coca-Cola an institution the world over.
During the Woodruff era, Mr. Woodruff made a promise to the armed
forces of the United States to supply Coca-Cola to every serviceperson.
He said that costs and location did not matter; he supplied 5 billion
bottles to the service.
1925 - 6 Million Coke's sold per day.
1927 - The first Coca-Cola radio advertisement.
1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first
time.
1943 On June 29, an urgent cablegram arrived from General Dwight
Eisenhower's Allied Headquarters in North Africa, requesting 10Coca-Cola bottling plants to serve American servicemen
overseas. Eventually, 64 plants were set up duringWWII.
1950 - Advertising on the television began. Currently Coca-Cola is
advertised on over five hundred TV channels around the world.
1961 - Sprite was introduced.
1971 - The song "I'd like to Buy the World a Coke"was released.
1978 - The two liter bottle was introduced, and during that same year
the company also introduced plastic bottles
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1982 - Diet Coke was introduced in July.
1985 -The Coca-Cola Company made what has been known as one of
the biggest marketing blunder. They stumbled into a newformula in efforts to produce diet Coke. They put forth 4 million
dollars of research to come up with the new formula.
The new formula was a sweeter variation with less tang, it was also
slightly smoother. The factor that influenced the change was that Coke's
market share fell 2.5 percent in four years. Each percentage point lost or
gain meant 200 million dollars. This was the first flavor change since
the existence of the Coca-Cola company. The change was announced
April 23, 1985 at the Vivian Beaumont Theater at the LincolnCenter.
Some two hundred TV and newspaper reporters attended this very
glitzy announcement.
The change to the world's best selling soft drink was heard by 81
percent of the United States population within twenty-four hours of the
announcement. Within a week of the change, one thousand calls a day
were flooding the company's eight hundred number. Most of the callers
were shocked and/or outraged, many said that they were considering
switching to Pepsi. Within six weeks, the eight hundred number was
being jammed by six thousand calls a day. The company also fielded
over forty thousand letters, which were all answered and each person
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got a coupon for the new Coke. Many American consumers of Coca-
Cola asked if they would have the final say. When Pepsi heard that the
Coca-Cola company was changing its secret formula they said that it
was a decision that Pepsi tastes better. Roger Enrico, the president and
CEO of Pepsi-Cola wrote a letter to every major newspaper in the U.S.
to declare the victory.
1985 - -July 10, eighty-seven days after the new Coke was introduced,
the old Coke was brought back in addition to the new one. This
was greatly due to dropping market share and consumer protest.
The market share fell from a high of 15 percent to a low of 1.4
percent. This was said to be a classic marketing retreat. Coca-
Cola executives admitted that they had goofed by taking the old
Coke off the market. The Coca-Cola company's eight hundred
number received eighteen thousand calls of gratitude. The
comeback of old Coke drove stock prices to the highest level in
twelve years. This was said to be the only way to regain the lead
on the cola wars.
1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.
1996 - The Summer Olympics will be held in Atlanta, Georgia, the
home of Coca-Cola. For more than 65 years, Coca-Cola has been
a sponsor of the Olympics.
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CSR (COMPANY SOCIAL RESPONSBILITY)
One great earmark that the Coca-Cola Company has is helping the
people of Atlanta. They accomplish this through scholarships, hotlines,
donations and contributions.
Another large accomplishment that the Coca-Cola has is being the first
company to make and use recycled plastic bottles.
JOHN PEMBERTON
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COKE IN INDIA
Despite the formidable track of its parent $18 billion giant in Atlanta
USA.Coke India record 1800 crore soft drink makers is prominent.Coca
cola entered in India market after 16 years from Hathras Dec
1993.Cocacola became the undisputed leader of the Indian soft drink
market because of their acquiring rights of Ramesh Chauhan aerated
Parle drinks with one stroke of pen and a bill of 140 crore, coke picked
by five brands Thums up, limca, Gold spot, Citra, Maaza with acombined rate of 65% with Thumsup alone accounting for 56% then 650
crore segment.
BENCHMARK
Coca-Cola ranks no.1 brand in the world by the business world
survey followed by companies like Microsoft and IBM.
Coca-Cola is the market leader in the whole world in beverage
industry.
Business week magazine ranks Coca-Cola on 4th
position in Indian
FMCG industry.Coca-Cola enjoys approx 60% market share in Indian beverage
industry.
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CHAPTER -4
INDUSTRIAL PROFILE
SOFT DRINKS INDUSTRY IN INDIA
Since the early 1990s Coca-Cola Corporation and PepsiCo have been
combating on what is known as the Beverage Battlefield in India.
Today India is one of the most sought after countries for foreign
investments because of their continually growing market opportunities.
BEVERAGE
Alcoholic Non-Alcoholic
Carbonated Non-
Cola Non-Cola Non-Cola
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However during Coca-Cola and Pepsis attempts to broaden their global
consumer bases both companies encountered several obstructions on
their pursuits of conquering the Indian soft drink market.
INTIAL DIFFICULTIES
From a historical standpoint, Coca-Cola and Pepsi were facing
obstructions even before entering the market in the late 1980s. Coca-
Colas past venture in India had ended on bad terms with the Indian
government when they refused to offer up their trade secrets. During the
absence of foreign investment in the soft drink industry in India a local
company, Parle, became the market leader. Parle invested a great deal
into their leading brand, Thums Up, and played a dominant role in the
soft drink industry until the liberalization of the Indian economy in
1991. After this time many of the political and legal obstacles facing
Coca-Cola and Pepsi were lessened.
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POLITICAL CHALLENGES
Other political challenges hindered the success of Coca-Cola and
Pepsi in India as well. In 2003, when the United States and Britain
invaded Iraq, the All-India Anti-Imperialist Forum called a boycott on
goods from America and India. Indians protested American companies
for the war and specifically targeted Coca-Cola and Pepsi products.
While the war was beyond control for these two companies,
management perhaps couldve done more to not only attempt to predict
the backlash from Indian consumers due to the war, but also couldve
created advertisement campaigns to address the situation.
While political and legal factors produced problems for Coca-Cola and
Pepsi, both Coca-Cola and Pepsi did a lot of things to prevent that
situation from happening. Both companies heavily participated in the
cultural festival of Navratri in western India to promote their products
and create brand awareness in a culturally traditional setting. The
companies also produced television and print advertisements that linked
important Indian themes to their products by building a connect using
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the relevant local idioms Coca-Cola and Pepsi both utilized popular
Indian sporting events, athletes, and celebrities to endorse their products.
Both companies couldve made the mistake of using American
celebrities or already made American commercials to advertise their
products in India, but instead made the right move by making
advertisements to specifically target their foreign market.
PRICING POLICY FOR INDIAN MARKET
Coca-Cola and Pepsi also made the right moves by adapting to
cultural barriers in India. One such barrier was the affordability of
products for Indians. Because India is a country where people are known
to live on very little a day, the idea of getting people to spend what little
they have on a soft drink could be quite a stretch. However Coca-Cola
India went with an aggressive pricing policy and reduced the price of
their soft drinks in 2003 from 15% to 25% nationwide. To compete
competitively in the market, Pepsi reduced their prices as well. This
move allowed both companies to offer products that were affordable to
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the target market in India but also encouraged more Indians to consume
Pepsi and Coca-Cola products.
Both companies also created smaller sized bottles to allow for
lower prices for Indian consumers. Coca-Cola and Pepsi created bottles
ranging in size from 200 ml to 500 ml to adapt to cultural needs and
increase their sales. By offering smaller sized bottles many consumers
also increased the frequency in which they were purchasing the soft
drinks.
COCACOLA IN INDIA
Coca-Cola was the leading soft drink brand in India until 1977 when it
left rather than reveals its formula to the government and reduces its
equity stake as required under the Foreign Exchange Regulation Act
(FERA) which governed the operations of foreign companies in India.
After a 16-year absence, Coca-Cola returned to India in 1993, cementing
its presencewith a deal that gave Coca-Cola ownership of the nation's
top soft-drink brands and bottling network. Cokes acquisition of local
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popular Indian brands including Thumps Up (the most trusted brand in
India21), Limca, Maaza, Citra and Gold Spot provided not only physical
manufacturing, bottling, and distribution assets but also strong consumer
preference. Thiscombination of local and global brands enabled Coca-
Cola to exploit the benefits of global branding and global trends in tastes
while also tapping into traditional domestic markets.
Leading Indian brands joined the Company's international family of
brands, including Coca- Cola, diet Coke, Sprite and Fanta, plus the
Schweppes product range. In 2000, the company launched the Kinley
water brand and in 2001, Shock energy drink and the powdered
concentrate Sunfill hit the market.
From 1993 to 2003, Coca-Cola invested more than US$1 billion in
India, making it one of the countrys top international investors.22 By
2003, Coca-Cola India had won the prestigious Woodruff Cup from
among 22 divisions of the Company based on three broad parameters of
volume, profitability, and quality. Coca-Cola India achieved 39%
volume growth in 2002 while the industry grew 23% nationally and the
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Company reached breakevenprofitability in the region for the first
time.23 Encouraged by its 2002 performance,
Coca-Cola India announced plans to double its capacity at an investment
of $125 million (Rs. 750 crore) between September 2002 and March
2003.
Coca-Cola India produced its beverages with 7,000 local employees at
its twenty-seven wholly-owned bottling operations supplemented by
seventeen franchisee-owned bottling operations and a network of
twenty-nine contract-packers to manufacture a range of products for the
company. The complete manufacturing process had a documented
quality control andassurance program including over 400 tests
performed throughout the process.
The complexity of the consumer soft drink market demanded a
distribution process to support 700,000 retail outlets serviced by a fleet
that includes 10-ton trucks, open-bay three wheelers, and trademarked
tricycles and pushcarts that were used to navigate the narrow alleyways
of the cities.25 In addition to its own employees, Coke indirectly created
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employment for another 125,000 Indians through its procurement,
supply, and distributionnetworks.
COCA-COLA: VISION
VISION FOR SUSTAINABLE GROWTH
PROFIT: Maximizing return to shareowners while being
mindful of our overall responsibilities.
PEOPLE: Being a great place to work where people are
inspired to be the best they can be.
PORTFOLIO: Bringing to the world a portfolio of beverage
brands that anticipate and satisfy peoples Desires and needs.
PARTNERS: Nurturing a winning network of partners and
building mutual loyalty.
PLANET: Being a responsible global citizen that makes a
difference.
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COCA-COLA: MISSION
Create consumer products services and communications customers
service and bottling system strategy process and tools in order to create
competitive advantage and deliver superior value to-Consumers as a
superior beverage experience.
Consumers as an opportunity to grow profit through the use of
finished drinks.
Bottlers as an opportunity to make reasonable to grow profits and
value added
Suppliers as an opportunity to make reasonable when creating real
value added in environment of system wide teamwork, flexible
business system and continuous improvement.
Indian society in form of contribution to economic and social
development.
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CHAPTER - 5
Coke Brands in Indian Origin
COCA-COLA:
Developed in a brass pot in 1886, Coca-Cola is the
most recognized and admired trademark around the
globe. Not to mention the best selling soft drink in the wor
SPRITE:
In 1961, a citrus-flavored drink made its U.S. debut,
using "Sprite Boy" as inspiration forits name. This elf
with silver hair and a big smile was used in 1940s
advertisingforCoca-Cola. Sprite is now the fastest growing major soft
drink in the U.S.,and the world's most popular lemon-lime soft drink.
The name "Fanta" was first registered as a trademark in Germany in
1941, when it was used for a few years for a soft drink created from
available materials and flavors. The name was then revived in 1955 in
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Naples, Italy, when it was used for the "Fanta" orange drink we know
today. It is now the trademark name fora line of flavored drinks sold
around the world.
DIET COKE:
The extension of the Coca-Cola name began in 1982
with the introduction of diet Coke (also called Coca-
Cola light in some countries). Diet coke quickly
became the number- one selling low-calorie soft drink in the world.
LIMCA:
This is thirst-quenching beverage features a fresh and
light lemon-lime taste and a lighthearted attitude. The
Limca brand was introduced in 1971 and acquired by
the Coca-Cola Company in 1993.
MAAZA:Maaza, launched in 1984 and acquired by
The Coca-Cola Company in 1993, is a non
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carbonatedmango soft drink with a rich, juicy m natural mango taste.
Thumps Up:
In 1993, The Coca-Cola Company acquired this brand, which
was originally introduced in 1977. Its strong and fizzy taste
makes it unique carbonated Indian Cola.
KINLEY WATER:
This is thirst-quenching beverage features fresh the
fresh water with the saturated oxygen level.
MINUTE MAID pulpy orange
This is orange juice .This contains no sugar & added
flavor .This is a family drink.
Competitor: Tropicana
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BRANDS TAGLINE
Thumps up - Taste the thunder
Coca-Cola - Open happiness
Sprite - Seedhibaat no bakwaas, clear hai
Limca - Fresh ho jao
Fanta - Go bite
Maaza - Binaguthliwalaaam
BRAND AMBASSDORS
Thumsup -Akshay Kumar
Coca cola -Aamir Khan
Sprite -Shahrukh Khan
Fanta -GeneliaDsouza
Limca -RiyaSen
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CHAPTER -6COMPETETIVE AREA
Competitive area Between Coke & Pepsi
Coca-Cola India Pvt. Ltd maintained its leading position in soft drinks in
India, followed by PepsiCo India Holdings Pvt. Ltd in 2010. Whilst the
retail volume shares of Coca-Cola India and PepsiCo India slipped in
2010, as a result of the growing health concerns caused by the aftermath
of the pesticides controversy, both maintained a comfortable lead over
the other manufacturers. Parle,Bisleri Ltd has steadily gained shares
from the carbonates giants over the review period, to emerge as the third
ranked company in 2010. The battleground for beverages has moved
from carbonates to bottled water and fruit/vegetable juice, with
manufacturers turning their attention towards these healthier beverages,
as consumer interest continues to surge forward. A number of new
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players have entered fruit/vegetable juice and bottled water, vying for a
slice of the growing pie.
While cricket had always been the most popular sport in
India, with new technology coming into cricket from coverage to sports
gear to day/night versions of the game, it was set to acquire the status of
a religion in the sub-continent. Pepsi picked up the opportunity early on
by not only contracting the rights to all Tests and One Day Internationals
(ODIs) played in India, but also signing up top performers early such as
Sachin Tendulkar and Rahul Dravid and creating some very cutting edge
and memorable advertising campaigns with them.
The distribution network of Coca cola had 6.5 lakh outlets across the
country , which the company is planning to increase to 8 lakhs . On the
other hand Pepsi Co's distribution network had 6 lakh outlets across the
country which it is planning to increase to 7.5 Lakh . ADVERTISING
Advertising is a non promotion of goods & services by sponsor who can
identified and who has paid for his communication. Their purpose of
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advertisement is to sell something goods or services,idea ,person or
place.
BRAND AMBASSDORS & TV COMMERCIALS
COLA WAR (neck to neck)
Bollywood rising stars Asin (left) for
PepsicosMirinda,GeneliaDsouza (Right) forcocacolas Fanta
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Tennis star SaniaMirza for Sprite
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Bollywood star Aamir Khan for Coke
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Bollywood star Akshaykumar for Thums up
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Sprite seedhibaat TV add
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Limca fresh ho jao TV add
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Minute maid pulpy orange TV add
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Bollywood superstar Shahrukh Khan
new Brand Ambassador of Sprite
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PROMOTION BY THE COMPANY
Promotional strategy during IPL matches
Lucky Coupon Dinner with kings XI Punjab
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Sprite kholegatohbolega IPL Season 2
Riding on the passion of T20 cricket amongst consumers, Brand Sprite,
Official Pouring Partner of Kolkata Knight Riders (KKR) had
announced the launch of a Special edition Sprite Kolkata Knight
Riders bottle. The latest initiative was a part of brand Sprites larger
consumer engagement program to leverage the second season of DLF
IPL, 2009.
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Independent research reports have shown, out of the 230 million mobile
phone users in the country, the youth continues to be the largest users of
mobile phones. Combining this key insight with the passion of T20
cricket, company had launched a special edition Sprite Kolkata Knight
Riders bottle with insignia of key players.
Complimenting the innovation, Sprite was also rolling out a special
KholegaTohMilega digital initiative in association with KKR and
Nokia.In the offer consumers just need to drink Sprite and look out for a
unique 9 digit code under the crown and SMS the code. Lucky
consumers get once-in-a-lifetime opportunity to meet Shahrukh Khan
and members of the KKR team. In addition, consumers also get a chance
to win a Nokia mobile phone every hour. The entire initiative was
applicable RGB and also on all PET packs of Sprite.
To create awareness about KholegaTohMilega digital initiative, the
company had launched a mass media campaign featuring Shahrukh
Khan, owner KKR, to be telecast on all the leading TV channels across
India.
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PROMOTION DURING OFF SEASON
Limca Launches Laptop Ki Barish Consumer Initiative
Coca-Cola India has announced the launch of its innovative Limca
Laptop Ki Barish consumer initiative nationally. As part of this unique
initiative a computer generated lucky draw would provide consumers a
chance to win HP Mini Laptop every hour for the next 45 days.
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The initiative is applicable to 200ml, 300ml returnable glass bottles
(RGB) and also on 500 ml, 600 ml 1.25, 1.5, 2 & 2.25 litters PET bottles
of Limca. As part of the under the crown initiative consumers just need
to SMS LIMCA followed by a 9 digit unique code to 58558 from their
GSM / CDMA mobile phones.
The national initiative is designed to leverage the popularity of digital
media like mobile phones (Both GSM & CDMA & IVRS), internet and
laptops amongst soft drink consumers and would run from 1st August to
14th September, 2009
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CHAPTER -7
SEGMANTATION MODEL
Visi-cooler position, display & Brand Order Compliance
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Under RED market developer has to ensure that shopkeeper
must display all
Under RED market developer has to insure that shopkeeper must display
all products. Display may be in the form of Shelf Display, Table Top
Display etc. All products must be displayed in brand orderi.e.Thumsup,
Coke, Sprite, Limca, Fanta, Maaza, Minute Maid Pulpy Orange, Kinley
(mineral water & Soda water).
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RED SCORE TRACKING
The performance of market developer is measured on the basis of score
tracking.Tracking will be done of the following Parameters:
1.Visi-cooler 35 points
2.Availability 40 points
3.Activation Elements 25 points
TOTAL 100 points
CHAIN FOLLOWED FROM MANUFACTURE TO
DISTRIBUTION
Manufacturing Plant,
Nazimabad U .P
Dehradun depot
Sales and Distribution
Operations
Distributors
Outlets
Outlets
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DISTRIBUTION NETWORK
HCCBPL has a wide and well-managed network of salesmen appointed
for taking up the responsibility of distribution of products to diverse
parts of the cities. The distribution channels are constructed in such a
way that the demand of customers is fulfilled at the right place and the
right time when they need it.
A typical distribution chain at HCCBPL would be:
Production --- Plant Warehouse --- Depot Warehouse ---
Distribution Warehouse --- Retail Stock --- Retail Shelf ---
Consumer
The customers of the Company are divided into different categories and
different routes, and every salesman is assigned to one particular route,
which is to be followed by him on a daily basis. A detailed and well-
organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency
thereby leading to higher profits to the firm.
DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY
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Coca-cola Company distributes their schemes according to area. Area or
place where soft drinks sold in a large manner, on those place company
gives good schemes to shopkeeper and retailer. Place like railway station
bus stand are consider in this category and place which have low selling
where company gives small schemes to the shopkeeper.
Criteria for providing free chilling equipment
An ice box is provided for the sale of 1-2 crates daily to theretailers.
For the sale of 5-6 crates daily a visi cooler of 4 crates is provided.
For the sale of 7-8 crates daily a visicooler of 7 crates is provided
by the company.
If the sale exceeds 9 crates daily then a visicooler of 9 crates or
deep fridge is provided by the company,
A STEPLIZER OF 1 KV to 5 KV is provided with the visi cooler &
chest cooler,
SALES PROMOTION
PUSH & PULL STRATEGY
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PUSH STRATEGY:-
HCCBPL is using Push strategy in which they use its sales force and
trade promotion money to induce intermediaries to carry, promote and
sell the product to end users i.e. consumers.
For example-as HCCBPL is giving free pet bottles and other trade
schemes to distributors, agency owners and retailers.
PULL STRATEGY: -
HCCBPL is also using Pull strategy in which they are using advertising
and promotion to persuade consumers to ask intermediaries for the
company brand product by this way HCCBPL inducing customer to
order it from shopkeeper.
For example-HCCBPL is using flanges, display racks, tier racks,
standees, mobile hangers and visicooler brand strips
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CHAPTER -8
RESEARCH METHADOLOGY
The research includes the study which was descriptive in nature.
Itbasicall aims about how coke schemes plays in the mind of
shopkeepers and the consumers.
The study includes two methods-
(a)PRIMARY
(b)SECONDARY
Primary includes the following ways-
Observation
Experiment
Survey
Here we include the primary method of survey
Research Instruments-
Questionnaire-A printed questionnaire was their to make the
survey.
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RED scoring sheet
Area of Survey-LAlbanglow, Mall Road, civil lines,
Rawatpur,govindnager ,Jajmau.
Sampling plan
Sampling unit - Owners of the retail outlets.
Sampling size- 250 outlets
Sampling procedure-Random sampling
Sampling method- Retailers survey
Project RED is a live project. It can broadly be classified in two stages,
which can be described as follows.
Initial Stage:-
This stage comprises of Product Knowledge and Process Knowledge.
The product knowledge means the knowledge of every product and
its variants offered by the company-
The Process Knowledge means the knowledge about the
distribution of the product and its variants from the sales depot to
the different retailers of the city.
The actual knowledge about the product and the process was attained
with the help of Route Riding.
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Route Riding means to visit different outlets on the commuting vehicle
(vehicle which carries coke product from depot to different outlets)
along with salesman. By the route riding it is very easy to grasp and
understand how the cola market actually works. Route riding elaborated
the factors influencing the cola market and provided the information
about the competitors strategies and schemes which they offer to the
retailers in order to gain advantage. Retailers grievances were best
know with the help of route riding through personal interaction. Also
with route riding any one can know about the sales status of an outlet ona daily basis.
Later stage:
This stage comprises of the serious implementation of the
project RED in the area of Rawatpur, lalbaglow, Ramadevi. To
ensure effective and fruitful implementation of the campaign,
market developers (M.D.) were appointed by the company. Market
Developers carried the responsibility to handle all the activities
under the R.E.D. campaign.
The first step involved in this stage was to select the outlets where the
campaign has to be implemented. The outlets are selected on the basis ofsome parameters like annual sale of the outlet, type of the outlet, space
available at the outlet etc.
PJP (permanent journey plan)
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(P.J.P. plan):.The P.J.P. plan is a day wise schedule of a market
developer which contains the names of the outlets to be visited by him
coming under the campaign R.E.D. where the project has to be
implemented.
After getting permanent journey plan the next step was to visit the
outlets for gaining initial information of every individual outlet as well
as market on a whole. The visit to all the outlets of that area helped in
revealing its market condition. Visiting the outlets clearly showed thepicture of the market situation prevalent in market.
PRE SALE CONCEPT
This is a new concept by the company. In this concept company takes
order one day before and then delivers the product to each route. So this
gives more time to market developer to assure RED.
This concept has so many advantages-
This gives more time to the market developer for the activation &
branding purpose.
By this company can easily implement the RED concept in better
way.
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Presale concept makes assure of more availability of the products
in the market.
This concept is easy in processing.
By this concept market developer can arrange the product in better
way.
The Company can display its products in proper way so that
customers can attract towards it.
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CHAPTER -9
SWOT ANALYSIS
1. STRENGTHS: -
DISTRIBUTION NETWORK: The Company has a strong
distribution network consisting of a number of efficient salesmen,
700,000 retail outlets and 8000 distributors. The distribution fleet
includes different modes of distribution, from 10-tonne trucks to
open-bay three wheelers that can navigate through narrow
alleyways of Indian cities and trademarked tricycles.
STRONG BRANDS: The Coca-Cola has been named the world's
top brand for a fourth consecutive year in a survey by consultancy
Interbrand. It was estimated that the Coca-Cola brand was worth
$70.45billion. People all over the world enjoy coca cola products
more than 1.3 billion times per day.
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COST OF OPERATIONS: The production, marketing and
distribution systems are very efficient due to forward planning and
maintenance of consistency of operations, which minimizes
wastage of both time and resources, leads to lowering of costs.
2: WEAKNESSES:
LOW EXPORT LEVELS: The brands produced by the company
are brands produced world wide thereby making the export levels
very low. In India, there exists a major controversy concerning
pesticides and other harmful chemicals in bottled products
including Coca-Cola .Therefore, people abroad, are apprehensive
about Coca-Cola products from India.
SMALL SCALE SECTOR RESERVATIONS LIMIT
ABILITY TO INVEST AND ACHIEVE ECONOMIES OF
SCALE:
The Companys operations are carried out on a small
scale and due to Government restrictions and red-tapism, the Company
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finds it very difficult to invest in technological advancements and
achieve economies of scale.
3: OPPORTUNITIES:
LARGE DOMESTIC MARKETS: Coca-Cola India claims a
60.1 per cent share of the soft drinks market; this includes a 42 per
cent share of the cola market. Other products account for 18.1 per
cent market share, chiefly led by Limca.
EXPORT POTENTIAL: The Company can come up with new
products, which are not manufactured abroad, like Maazaetc and
export them to foreign nations. It can come up with strategies to
eliminate apprehension from the minds of the people towards the
Coke products produced in India.
HIGHER INCOME AMONG PEOPLE: Development of India
as a whole has lead to an increase in the per capita income thereby
causing an increase in disposable income. The beverage industry
can take advantage of such a situation and enhance their sales.
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4: THREATS:
IMPORTS: As India is developing at a fast pace, the per capita
income has increased over the years .If consumers shift onto
imported beverages rather than have beverages manufactured
within the country, it could pose a threat to the Indian beverage
industry as a whole in turn affecting the sales of the Company.
TAX AND REGULATORY SECTOR: The tax system in India
is accompanied by a variety of regulations at each stage on the
consequence from production to consumption. Therefore, this can
limit the growth of the Company and pose problems.
SLOWDOWN IN RURAL DEMAND: Low per capita
disposable income, large number of daily wage earners, poor
roads; power problems; and inaccessibility to conventional
advertising media. All these problems might lead to a slowdown in
the demand for the companys products.
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CHANGING OF CONSUMERS PREFERENCE: The
Company should keep a eye on the changing preferences of the
consumers.
PUSH & PULL STRATEGY
PUSH STRATEGY:-
HCCBPL is using Push strategy in which they use its sales force and
trade promotion money to induce intermediaries to carry, promote and
sell the product to end users i.e. consumers.
For example-as HCCBPL is giving free pet bottles and other trade
schemes to distributors, agency owners and retailers.
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PULL STRATEGY:-
HCCBPL is also using Pull strategy in which they are using advertising
and promotion to persuade consumers to ask intermediaries for the
company brand product by this way HCCBPL inducing customer to
order it from shopkeeper.
For example-HCCBPL is using flanges, display racks, tier racks,
standees, mobile hangers and visicooler brand strips.
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