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Acknowledgement

Co-operation and building up of moral are the essence of success. These are two factors that go a long way in achieving it. It is a Herculean task, which lacks these two determinants of success. It was an opportunity and great pleasure for me to be in such an environment and having interaction with concerned people. I express my heartly respect and thanks to Mr. Shrikant(A.S.M.) and Mr. S. Biradar (S.E.) for their informative and detailed guidance for the completing and evaluating of this project. Prof. V. V. Siddhanthi, Faculty, BLDEAs MBA programme (Autonomous), Bijapur who was in the role of my Faculty Guide, left no stone unturned in guiding me along the course of my Summer Training Project work. I am grateful to them those given me this opportunity to work on such type of project, without their, it is not possible for me to complete the project. Finally, to my parents, for all the tea and care with which they overwhelmed me through these long months of creation.

I sincerely hope that my first venue in this field is appreciated. Offering thanks.

Syed Faheem

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TABLE OF CONTENTS
1. Chapter 1 Literature Review Introduction about the topic Introduction about the company

2. Chapter 2- Research Methodology Purpose of the study Objective of the study Scope Data collection Sampling methods Limitations

3. Chapter 3- Data analysis and representation 4. Chapter 4- Findings 5. Chapter 5- Recommendations and suggestions. 6. Chapter 6- Conclusion 7. Chapter 7- Bibliography 8. Chapter 8 - Appendix

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CHAPTER-1

INTRODUCTION ABOUT THE TOPIC AND INTRODUCTION ABOUT THE COMPANY

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LITERATURE REVIEW
Global Strategy of Coca-cola: (Zhang, 2010) Indian market is one of the major developing economies in the world. The Coca-Cola Company is mentioned as a global company with global products and global activities. In 1980 the company was moving towards centralized control. At that time the motive of the company are to be global in order to expand geographical wise into many of the countries in which the company does business today. In 1990 the world began to start smaller and smaller as a town for the global companies. Globalization forced changes to appear so fast that many countries could hardly manage the new global environment. As a result, the very forces that were making the world more connected and homogeneous were simultaneously triggering and preservation of unique culture identity. The world is demanding greater flexibility, responsiveness, local sensitivity, nimbleness, speed, transparency and local sensitivity had become essential to success (Draft, 2000). CocaCola Company sees itself not as a global organization, but as a multi-local enterprise (Swenson, 2001). Coca-Cola Company historical strength came from operating as a multi-local business that for a very long time relies mostly on the insight of local bottling partners. That's why the global strategy of coca-cola allows its business in more than 200 countries to act according for local laws, local culture, and local needs and so on. Coca-Cola pursues an assumed global strategy, allowing for differences in packaging, distribution, and media that are important to a particular country or geographical area. Hence, the global strategy is localized through a specific geographic marketing plan. Instead of applying a global strategy, it is likely to be a strategy of thinking globally, but acting locally. The global success of Coca-Cola is the direct result of people drinking it one bottle at the time in their own local communities. So we are placing responsibility and accountability in the hands of our colleagues who are closest to those billions of individual sales (Draft, 2000). This signifies that if their local colleagues develop an idea or a strategy that is the right thing to do locally, and it fits within fundamental values, policies, and standards of integrity and quality of the Coca-Cola Company, then they have the authority and responsibility to do so.

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Therefore, their multi-local strategy approach is still going strong and adequately for the company's worldwide business activities. In addition Gould (1995) states that cocacola has become a part of people's daily meal, a price at which anyone can buy and it is available to people in any part of the world. The IR framework has been used to critically analyze the global strategy of Coca-Cola. COCA-COLA COMPANY saw that there is an opportunity in Asian market and their home market situation is saturated. COCA-COLA COMPANY decided to re-enter in the Indian market in 1993. Indian government plays a major role in every international company and had a law that any international company has to become a partner in Indian market with an Indian company. To overcome this problem COCA-COLA COMPANY acquisition of local Indian popular brands including the THUMS UP (the most trusted brand in India), Mazza, Gold Sport, Citra and Limca providing a good base not only in bottling, manufacturing and distribution assets but also very good strong consumer preference(Kaul, 2003). From this acquisition the leading Indian brands join the family of global brand and its products like coca-cola, diet coke and others. From this acquisition Coca-Cola enables to exploit the benefits global branding and global trends in taste while also tapping in other domestic markets (lane, 1998). Coca-Cola adopted the standardization strategy to produce and sell its standardized products globally (Rodrigues, 2009). Coca-Cola Company do franchise with the local manufacturing bottling companies through which they have a local response and local touch. In India COCA-COLA COMPANY have 46 bottling plant from which 22 are company own and rest are the franchise operated plant (Coca-Cola, 2010). After reentering the Indian market in 1993 the COCA-COLA COMPANY operations grown rapidly through a model that supports local business which includes over 1.3 million retailers and over 7000 distributors across the country. Coca-cola has been successful in the global market as well as Indian market because it follows the local strategies and is able to deliver as per the needs of the local people by manufacturing and distribution by the local company (Hill, 2009). In manufacturing the product the water which is used is local from which the customers get the local taste. The company has an approach where in, their business does not get influenced by the area of sales. Rodrigues (2009), states that Coca-Cola pursues the global strategy of producing diverse products as per the local culture. For instance in India people prefer sweeter coke. Also Coca-Cola launched Georgia, a canned coffee specially intended for Indian market which captured 40% of the market soon after its launch (Hill, 2009).
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According to Cokecce.com (2007), Coca-Cola trains their managers in their management school, to make them aware of the global perspective of their operations.

Marketing is one of the back bones of any global industry in any country. As to stay in the market ahead from the competitors, marketing plays the major role in Indian market for soft drinks. The post- liberalization period in India saw the comeback of Cola but Pepsi(one of the major competitor India) had already beaten Coca-Cola to the punch, creatively entering the market in the 1980's in advance of the liberalization by the way of joint venture. Coca-Cola Company benefited from Pepsi creating demand and developing the market for soft drinks. (Kaul, 2004)

In 2001 Coca-Cola CEO Douglas Daft set the new direction for next generation of success for global brand with a Think global, act local mantra. Recognizing that a single global strategy or single global campaign wouldn't work, locally relevant executions became an increasingly important element of supporting Coke's global brand strategy. Coca-Cola Company re-examined its approach in an attempt to gain leadership in the Indian market and capitalize on significant growth potential in the rural markets. The foundation the new strategy grounded brand positioning and marketing communications in consumer insight, acknowledging that urban versus rural India were two distinct markets on a variety of important dimensions. (Kaul, 2004) In rural market, where both the soft drink category and individual brands were undeveloped, the task was to broaden the brand positioning while in urban markets, with higher category and brand development, the task was to broaden the brand positioning while in urban markets, with higher category and brand development, the task to narrow the brand positioning focusing on differentiation through offering unique and compelling value. (Kaul, 2004)

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Coca-Cola used two different marketing strategies for each urban and rural market. The first marketing life ho to aisi means life as it should be for urban market and the other was thanda matlab coca cola which means cool or cold is coca cola which hit the rural target very highly and gain the market very efficiently because the 96% of the population are in rural and developing cities. Coca-Cola Company reduced its rate for the rural market by providing 200ml bottle so that those customers and consumers whose wages are not so high can also have it. (Kaul, 2004) At the same time, Coke invested in distribution infrastructure to effectively serve a disbursed population and doubled the number of retail outlets in rural areas from 80,000 in 2001 to 160,000 in 2003, increasing market penetration from 13 to 25%. As a result of the marketing campaign, Coca-Cola won Advertiser of the year and Campaign of the year 2003. (Kaul, 2004)

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INTRODUCTION ABOUT THE TOPIC What is Horizontal Expansion?


It means opening new outlets. It is done to increase the market share and to increase the visibility of product in the market which will ultimately lead to higher sales volume and larger market share. 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, For e.g. Pepsi has adopted strategy of Vertical Expansion by which Pepsi wants to improve its sale from Coke monopoly outlets, means Cokes monopoly outlets are being taken over by Pepsi now in this condition to improve its 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 customers and serve them properly. While doing Horizontal Expansion take care to the competitors 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. 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 commute.

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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 products 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. 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. Lets see the profit story of horizontal expansion

Impact of New Outlets on Busin

Measure Number of Existing Outlets Total Volume (in Lac Phy Cases) VPO in Phy Cases Number of New Outlets New Outlet VPO Incremental Volume (in Lac Phy Cases) Grand Total Volume in Lac Cases)

2008 10000 50 500

2009 10000 55 550 2000 125 2.5

Horizon

Vertical G

50

57.5

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Measure Number of Existing Outlets Total Volume (in Lac Phy Cases) VPO (in Phy Cases) Numer of New Outlets New Outlet VPO Incremental Volume from New Outlets(in lac Phy Cases) Grand Total Volume Margin Per Case Gross Total Margin (in Rs 000's) Operating Expense (in Rs 000's) Net Total Return (in Rs 000's) Investment (in Rs Lac) ROI

2008 1000 3 300

2009 1000 3.5 350 200 150 0.3

3 12 3600 7 1500 80 19%

3.8 12 4560 6.5 1925 85 23%

Im

Above tables clearly indicate the importance of opening new outlets. By doing vertical expansion only growth in profit was not very effective but because of opening just 200 new outlets sales increased to a large extent. Total profit margin and return on investment also increased.

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How to Do Horizontal Expansion


To do Horizontal Expansion more efficiently I made a profit story and talk to the shopkeepers according to that story. Story Salesperson hello sir, I am from Coke and I have a proposal that will surely increase your income. May I present you? Shopkeeper yes please present it Salesperson - Sir if you will start to sell coke then your overall sale will be increased and it is not tough to sell coke because Coke is the leader in beverage industry and a very well known brand. Shopkeeper- yes, but how it can increase my overall sale? Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products have a very good combination with cold drink. If a person wants to purchase any of these products then it is quite possible that he will purchase Coke and vice versa. Shopkeeper But how Coke can increase my profit? Salesperson Sir if you are really interested to explore through Coke, you may be able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 6oo ml and 1 case of 2 liter. And for start selling Coke you need to invest only Rs. 420. We will provide you 3 empty carets Weight of Product Rate (ML) (Rs.) 200 300 600 2000 168 214 488 455 of case QTY M.R.P. (Rs.) 24 24 24 9 8 10 22 55 Revenue (Rs.) 192 240 528 495 Profit (Rs.) 24 26 40 40

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Sir your daily profit from coke (in Peak season) Profit per month (in Peak season) Profit of whole season

= Rs. 154 = Rs. 4620 = Rs. 13860

(Because the peak season for Coke is only of 3 months) Profit of rest of the 9 months = Rs. 20790

(Because as per the Coke assumption income in the off season is decreased by half in comparison to the Peak season) Profit of whole year Your investment Your ROI = Rs.34650 = Rs. 1913 = 34650 * 100/1913 = 1811.29%

Shopkeeper But I do not think this much will work what about those stuffs that needs to support trading of Coke and I have to provide them like electricity, ice etc. Salesperson Sir thats a really nice question, we can understand your anxiety and we have to offer much more for this. We have minimum Rs. 10 offer on 200 and 300 ml and Minimum Rs. 20 on Pet bottles. More over if you are keeping your refrigerator for the storage purpose of Coke if will be all right as the refrigerator can work by consuming power as low as 2 units per day which will cost you Rs. 8 per day. So, what you have to say about our offer? Shopkeeper Yes, I think it will be a nice idea to accept your offer. Salesperson Thank you sir and Congratulation (Shaking Hands) I will be dropping my products within 10 minutes as I have the carrying vehicle with me and within next 15 minutes you are all set to go for selling Coke. On some shops we set refrigerators and to keep a refrigerator we need to collect 1 photo copy of Voter ID card or Ration Card, 1 photo copy of electricity bill and 1 passport size photo of shopkeeper.

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Introduction of the Company

Every person who drinks a Coca-Cola enjoys a moment of refreshment and shares an experience that millions of others have served. All of those individual experiences combined have created a worldwide phenomenon a truly global brand. 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 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. A career at Hindustan Coca-Cola Beverages Pvt. Ltd. is truly a one-of-a-kind experience. Come taste life at Coca-Cola.

HISTORY Coca-Cola Company, nourishing the global community with the worlds largest selling soft drink since 1886, returned to India in 1993 after a gap of 16 years giving a new thumbs-up to the Indian Soft Drink Market. In the same year, the Company took over ownership of the nation's top soft-drink brands and bottling network. No wonder, our brands have assumed an iconic status in the minds of the consumers. Coca-Cola serves in India some of the most recalled brands across the world including names such as CocaCola, Diet Coke, Sprite, Fanta, Thums Up, Limca, Maaza and Kinley (packaged drinking water), Minute Maid Pulpy Orange. Bottlers In general The Coca-Cola Company (TCCC) and subsidiaries only produces (or produce) syrup concentrate which is then sold to various bottlers throughout pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories. The company operates a franchised distribution system dating back to 1889 where TCCC only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory.
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PRODUCTS AND BRANDS

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CONSUMER CHOICE AT A GLANCE

Coca-Cola Thums-Up Limca Fanta

Mainly preferred by the Youngster & Kids. Youngster. Common Drink. Basically Preferred by Ladies and Kids. Also Ladies and Kids. Not clearly defined. Mostly those who consume liquor. Premium class people. Common Juice

Maaza Sprite Kinley Soda Georgia Minute Maid Pulpy

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CHAPTER-2

RESEARCH METHODOLOGY

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PURPOSE OF THE STUDY


Consumption of soft drinks has increased tremendously in India. Every age of group like it, now a days it become a household necessary item. In field of marketing many kind of surveys are conducted by coca-cola team time to time. This is end and last feedback for any kind of organization. By the specific survey, which was conducted by coca-cola organization want to know about the right picture of Hubli & Bijapur market. This work study provides extensive information about the position of companys brand in Hubli & Bijapur. To find out the present status of Coca-Cola brands in the retail outlets.

OBJECTIVES OF THE STUDY

Primary Objective:
1. To understand & explain the Horizontal Expansion Concept with respect to HCCBL operations at retail end. 2. To enlist the benefits of Horizontal Expansion for the company at retail end. 3. To enlist the roles and responsibilities for Horizontal Expansion at retail end.

Secondary Objectives:
1. To identify if there exists any training requirement for the improvement of sales to its sales team. 2. To understand how to make The Horizontal Expansion Process more effective. 3. To study the distribution system of the company. 4. To study the behavior of sales man and distributer towards shopkeeper. 5. To develop the business, expand the market coverage, acquisition of retailers, retention strategies and maintaining customer relations.

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SCOPE OF THE STUDY


This study has been done at Hubli & Bijapur region. During the study I went through different aspects. The study would be only a drop in the ocean that can help to understand the current status of activation elements of Coca-Cola in retail outlet. The study can be conduct on the national basis also with large sample size & sufficient time by taking feedback of many retailers which sell Coke products. There are some important aspects of this study which are as follow This project work is helpful in making a deeper analysis of the horizontal expansion strategy of Coca-Cola in Hubli & Bijapur. This project work will be helpful in conducting higher studies regarding the overall satisfaction of Coca-Cola from the dealers perspective. This report work will help the company to devise further marketing & sales strategies. During my project I came to know about Pepsi-Co Marketing strategy that is the biggest competitor of Coca-Cola. During my project I came to know about coke market share in two cities.

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DATA COLLECTION
This research involved a study, which was descriptive as well as explorative in nature it basically aims at gathering data about how the coca-cola red element concept &scheme playing in the mind of retailer & consumers. During the research period I collected data direct from retailers by survey. For proceeding further first of all we should know something about data and what the different type data are-

TYPES OF DATA: There are two types of data1. Primary data. 2. Secondary data.

METHODS OF DATA COLLECTION Primary data collection: Primary data can be collected by three methods1. Observation 2. Experiment 3. Survey 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 at Hubli & Bijapur.

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SAMPLE DESIGN

Sampling unit: The retailer of Grocery shop, general store, betel shop, and medical store was selected from different places of Hubli & Bijapur.

Sampling size: 150 Outlets.

Type of sampling: There are two type of sampling. Probability sampling. Non probability sampling.

Probability sampling- It is also known simple random sampling. In this sampling everybody gets similar chance to select as a sample unit.

Non probability sampling- In this sampling everybody gets not similar chance to select as a sample unit. Example of non probability are cluster sampling, convenience sampling, judgment sampling e t c.

Sampling procedure: Simple random sampling procedure was followed.

Sampling method: Data were collected by retailer survey. The retailers are directly contacted and interviewed at their retail counter.

LIMITATIONS OF THE RESEARCH WORK Considering the fact that Nothing is perfect in the world, every individual is bound to make mistake at some points, and it is genuine. The study was restricted to Hubli & Bijapur region only. Limited knowledge of the researcher in the field of research may lead to interpretation errors. The respondents may be biased or influenced by other factor.

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A busy schedule of dealers/ retailers also makes the collection of information a very difficult one. The project is purely based on observation & verbal meetings and may be influenced by unprecedented factors. Non-co-operative behavior of respondent was a big problem in this survey. . The research was based on primary collection of data through voice interview and observation so there may be chances of human error. The research was depending on the information provided by the respondents (retailers). It may insufficient. As associated with project, time and money were the major limitations with this project.

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CHAPTER-3 DATA ANALYSIS AND INTERPRETATION

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1 .Type Of Channel Channel E&D Grocery Convenience Others Response 60 30 60 0 % 40 20 40 0

60 60 50 40 40 30 30 20 20 10

60

40

0 0 E&D Grocery Convenience Others

Response

InterpretationThrough the above diagram we can know that out of 150 outlets how many outlets are convenience, grocery and E&D outlets. Thus we can conclude that 40% outlets were E& D, 20% were grocery, 40% were convenience.

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2. Type of Outlet Outlets Pepsi outlets Coke Outlets Never sell cold drinks Both Pepsi and coke Response 30 30 30 60 Percentage 20 20 20 40

40%

Increased ROI
20%

N
20%

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InterpretationThrough the above diagram we can know that out of 150 outlets,30 outlets sell pepsi,30 outlets sell coke,30 outlets dont sell cold drinks at all and 40 outlets sell both

3. Chilling Equipment used Chilling Equipments Used Responses Percentage

Coke Fridge Pepsi Fridge

30 30

20 20

Own Fridge Ice Box Both Coke and Pepsi Fridge

15 21 54

10 14 36

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14% 20%

Coca co

Pepsi Fr

20%
10% 20%

Own yo

Ice Box

Both Pe

InterpretationThrough the above diagram we can know that out of 150 outlets,30 outlets have coca cola refrigerators,30 have Pepsi refrigerators,15 use there own refrigerator,21 use ice box and 54 use both Pepsi as well as coca cola refrigerators.

4. Level of satisfaction on Communication From the Company Level of satisfaction Responses Percentage

Highly satisfied Quite satisfied

18 57

12 38

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Neither satisfied nor dissatisfied Quite dissatisfied Highly dissatisfied

24 39 12

16 26 8

60

50

40

30

20

10

36%

18

12

57

38

24 16

39

26

0 Highly satisfied Quite satisfied Neither satisfied nor dissatisfied Quite dissatisfied Highly dissatisfied

InterpretationThrough the above diagram we can know the level of satisfaction on communication from the company. Out of 150 outlets,18 are highly satisfied,57 are quite satisfied,24 are neither satisfied nor dissatisfied,39 are quite dissatisfied and 12 are highly dissatisfied

5. What is done if a brand which preferred is not delivered properly?

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outcomes

Responses

Percentage

Go for other brand Call to distributer Call to companys sales person Stop selling that brand Other outcomes

96 0 39 15 0

64 0 26 10 0

26%

Go for o 64%

Call to d

Call to c 12

Stop se

Other a

InterpretationThrough the above diagram we can know what the retailers do if a brand they prefer is not
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deliver to them. Out of 150 outlets, 96 of them go for other brands, 39 of them call to the company`s sales person and 15 of them stop selling that brand.

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6. Promotions that affect the brand mostly promotions Responses Percentage

scheme Case refund Price pack Under crown scheme Any others

63 21 12 54 0

42 14 8 36 0

70

60

50

40

30

20

10

10%

63 42

21 14

12 08

0 Scheme Case refund Price pack Under Crown Scheme Any Other

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Interpretation:Through the above diagram we can know the promotion that affect brand mostly. Out of 150 respondents 63 replied schemes,21 case refund,12 price pack and 54 under crown scheme.

7. Effect of mega events (Ex. IPL) on sale of coke in peak season, like summer) Effect Increase Decrease No effect Cant say Response 21 18 66 45 Percentage 14 12 44 30

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70

60

50

40

30

20

10

54 36

21 14

18 12

66 44

0 Increase Decrease No effect Cant say

InterpretationThrough the above diagram we can know the effect on sales in the occasions of mega events (In peak seasons). Out of 150 responses 21 said that the sales increase,18 said that the sales decrease,66 said that there is no effect on sales on mega events and 45 did not answer.

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8. Effect of mega events (Ex. IPL) on sale of coke in peak season, like summer) Effect Increase Decrease No effect Cant say Response 42 15 69 24 Percentage 28 10 46 16

70

60

50

40

30

20

45 30
10

42 28

15 10

69 46

0 Increase Decrease No effect Cant say

InterpretationThrough the above diagram we can know the effect on sales in the occasions of mega events (In non peak seasons). Out of 150 respondents 42 said that the sales increase,15 said
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that the sales decrease,69 said that there is no effect on sales on mega events and 24 did not answer.

CHAPTER-4

FINDINGS

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FINDINGS

1. It is felt that outlet owner are more concern about schemes like offers on cases, under crown schemes etc and Pepsi is providing them better schemes than Coke. 2. It is felt that distributor is not doing his work honestly, he is not sending route in the market properly. When the salespersons generate orders with retailer, due to problem like salesman is on leave, vehicle is not available etc they delay the order and retailer cancel the order with the distributer that affects the sales volume. 3. Distributer is more concern about Wholesaler rather than Retailer. 4. As per policy, both companies are not entitled to collect competitor empty bottles from the shops but Pepsi is not adhering to it. Therefore this hampering the business of coca-cola in the market as Pepsi is more preferable to carry on the business in a suave manner. 5. The distributor in its area is facilitating sales by establishing monopoly of offers and schemes that do not reach to the outlet. 6. Due to infiltration, difference in the rates for the shopkeepers has been perceived as a major problem in the market. 7. Distributor rarely keeps any interest to work and communicate with the customer who results in of the companys sales as well as image are getting adversely affected. 8. It has been found that the shopkeepers has strongly responded to the option of switching to the brand (Pepsi) when it has been inquired that what will they do in order to continue trading at the time when their preferred brand is not been delivered properly. 9. The shopkeepers have nodded to the view that schemes offered to them as per the policies of the company plays a significant role in increasing profitability. As per the notes taken apart from the data in the questionnaire it has been discovered that PEPSI offers more schemes to the shopkeepers who are vindictive for the company. 10. Some outlets are maintaining old price strips and also these are not easily visible to the customer. 11. I found that some retailer were not satisfied with our service, for that reason they stopped to sell our product and started to sell Pepsi product.
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12. I found that Pepsi is doing aggressive advertisement in comparison with Coke, and investing aggressively on activation like hording, glow sign board, DPS, also in terms of providing good service and free chilling equipment to the retailer.

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CHAPTER-5 RECOMMENDATIONS AND SUGGESTIONS

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RECOMMENDATIONS AND SUGGESTIONS


Company should convince retailers to have promotional tools decorating with coke products and should tell them why these elements are important and how company as well as Retailers is getting benefit of using these activation elements.

Company should focus more and more on E&D Outlet because most of the E&D outlets dont have promotional tools of the company and overall average score of these outlets is very less.

Company should reframe the Flange to an attractive and big size because the current look and size of Flange is not attractive and fail to draw attention of the population.

Overall service 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 complaint of Retailers.

The Company should measure Retailers satisfaction regularly and should maintain proper communication with them.

Company can increase the sales when it considering more on retailers, their suggestions or complaints about service or product so that necessary action can be taken.

Review meeting should be often held so that the working pattern of the executives can be checked and improved if needed.

Company representatives should visit retailers and should make a long-term relationship with retailer so that they can push the product. Distributers should be convinced to pass the incentives to the retailers so that they are motivated to promote this brand.
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Increase the number of dealers and retailers as this will help in making high sales volume. Now company should launch new taste of soft drinks like recently launched Minute Maid & also launched new product in another flavor.

In winter Season Company should give more discount & schemes to retailers so that they sell more our product.

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CHAPTER-6

CONCLUSION

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CONCLUSION

Coca - Cola beverage Pvt. Ltd. is worlds largest beverage company and as we know that the coca-cola company is on that stage because of its large number of products and by giving the customer complete satisfaction regarding taste and quality. Now a day its necessary to show customer and to make believe them that our product is better than others in the aspects which can be done in a better way through merchandising the products. As far as journey with the company is concerned, I grasped lots of knowledge within my project period. 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.

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CHAPTER-7

BIBILIOGRAPHY

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BIBILIOGRAPHY
I have used following resources to prepare this study report to make it more accurate and confidentialSerial Source no information www.cocacola.com 1. Websites www.cocacolaindia.com www.google.com of Name Designation Organizations/writers name

2.

Guidance personalities

Mr. Shrikant Mr. Biradar

ASM(North Zone) Sales Executive

Coca Cola Bijapur

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CHAPTER-8 APPENDIX

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Appendix- A (sample questionnaire)


I am Syed Faheem student of BLDEAs MBA Program(autonomous) undertaking a summer project on the topic Analysis of Horizontal Expansion Strategy of Coke. I would like to see your views and opinions on the same. Could you kindly spend a few minutes helping me complete this questionnaire?

(1) What Type of Channel do you hold? a) E & D b) Grocery c) Convenience d) Other, Please specify ________________________________________________

(2) What Type of outlet are you in? a) Pepsi Exclusive b) Coke Exclusive c) Never sell cold drinks d) Both a & b

(3) What is the chilling equipment you are using? a) Coca cola Fridge b) Pepsi Fridge c) Own your Assert Fridge d) Ice Box e) Both (A & B).

(4) Kindly rate the level of satisfaction on Communication from the company a) Highly satisfied b) Quite satisfied c) Neither satisfied nor dissatisfied d) Quite dissatisfied e) Highly dissatisfied

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(5) If a brand which you prefer is not delivered to you properly, then what do you do? a) Go for other brand b) Call to distributer c) Call to companys sales person d) Stop selling that brand e) Other actions please specify __________________________________________.

(6) Which of the following promotions affect the sale mostly? a) Scheme b) Case refund c) Price pack d) Under Crown Scheme e) Any Other, Please Specify ____________________________________________.

(7) Is there any effect of mega events (Ex. IPL) on sale of COKE (In peak season, like summer)?

a) Increase b) Decrease c) No effect d) Cant say

(8) Is there any effect of mega events on sale of COKE (In non-peak season)?

a) Increase b) Decrease c) No effect d) Cant say

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