Documente Academic
Documente Profesional
Documente Cultură
OBJECTIVES :
1.
Cola products and other brands of soft drinks. 2. To find the degree of satisfaction of retailers with respect
to the services offered by the company. 3. 4. To find the positive aspects of competitors products. To find the perception of retailers with respect to quality,
LIMITATIONS:
This information collected and opinions got all from the retailers, consumers as to what they feel. Thus the accuracy and information collected depends on the perception of each respondent and circumstances involved.
The study had been conducted by including 100 retailers. Through the sample size is highly representative of the population and has been taken from prominent places in (INDIA) Vijayawada Andhra Pradesh. It does not cover their entire retailers and consumers.
Though HINDUSTAN COCA-COLA BEVERAGES PVT LTD is an MNC (multi national co,) the products are available in more than 200 countries. It is not possible to collect perception of retailers and consumers in all the countries.
Analysis couldnt be drawn for the entire questionnaire, only specific question have been analyzed and interpreted.
METHODOLOGY:
SOURCE OF DATA:
It is not a record data. It is collected by personally interviewing the respondents through experience, observation and survey methods. It is collected specially for a particular purpose with certain objectives in mind Primary data was very much used to prepare this report.
2. Secondary Data :
Secondary data consists of the data, which is already collected and recorded by some other person for some purpose and are available for present study. Secondary data are also used to prepare this report. They are: a. Internet. b. Newspapers and magazines. c. Test books. d. Companys annual report.
SAMPLE SURVEY:
At the period of research work, it was necessary to collect a certain number of data from the people but is not necessary to survey each and every person who can give information on this topic. Therefore it would be sufficient to survey only some of these people before the data is gathered it is necessary to decide to when the survey is to be held and how many people are going to be surveyed. Sample characteristics:
population
The samples were collected from retailers of the following areas in Vijayawada. Ellur road, Bandar road, Ring road, Ramesh hospitals road, Polyclinic road, Governerpet, Moghulraj puram, Dornakhalu road, etc.
Schedules: The sales mens and marketing people of the company were interviewed to gather certain data about the company.
6
Questionnaires: Refer to the questionnaire for of the list of questions, based some of the data is collected analysis. on which
There are basically two types of Questionnaires: Open-ended: Here the respondents can answer the questions in their own way. E.g.: suggestions asked from the retailer.
Close-ended: Here the choices of answer are given and the respondents have to choose from the choices, the answer closest to this.
Bar
diagrams
had
been
used
for
the
better
presentation and better understanding of the data. The information collected through the survey is classified and tabulated.
The information collected is calculated in the forms of percentages to make interpretation easy.
CHAPTER II
Industry Profile
Industry profile:
Soft drinks are non-alcoholic water based flavored drinks, that are optionally sweetened, acidulated, carbonated and which may contain fruit, fruit juice or salts. Dairy drinks fruit juices come under this sector. North America is the largest soft drinks market with 27% of the soft drink sales and a consumption of 192 liters per person per year. Carbonated drinks are the biggest soft drinks sector with 45% of global volume. Soft drinks consisted of a flavor base, a sweetener, and carbonated water. In 1990, cola-flavored drinks accounted for approximately 70% of the market, and lemon-lime products accounted for 12%. Diet and caffeine-free products were sold across all flavor categories and comprised 30% and 6%, respectively, of the market in 1990. In the, soft drink consumption grew from 0,6 gallons per person per year in 1899 to 22.7 gallons in 1970, 34.5 gallons in 1980, and 47,4 gallons in 1990. Soft drinks accounted for a remarkable 26% share of beverage consumption in 1990, up from 12.4% in 1970. Growth had historically occurred primarily in the 15-24 and 25-34 in 1990 age groups and had slowed to 3% per year in 1990.
9
The prospects for future growth in soft drink consumption were actively debated. Some industry observers had argued for years that soft drink consumption was approaching its limits, and that the industry would not regain the 5% annual growth common in the late 1970s and mid-1980s. Others believed that innovations in product development, advertising, and distribution channels would fuel continued industry growth. Three major participants were involved in the production and distribution of soft drinks: concentrate and syrup producers, bottlers, and retail channels. There were several other national producers, including SevenUp, Dr Pepper, Royal Crown, Canada Dry, and A&W. There were also several dozen regional and private label producers who held modest shares of their regional markets, such as Polar and White Rock. Regional producers typically sold a wide line of soft drink flavors such as cola, grape, orange, cream soda, and ginger alewhich were distributed through major food chains. Early in their history, Coca-Cola and Pepsi-Cola granted franchises for the right to bottle their soft drinks. This practice spread to other leading concentrate producers. Under the agreements,
10
franchisees were granted the exclusive right to bottle and distribute a concentrate company's line of branded soft drinks within a defined territory in perpetuity. Franchisees were not allowed to market a directly competitive brand; for example, a Coca-Cola bottler could not sell Royal Crown (RC) Cola. However, franchisees could sell noncompetitive brands and could decline to market a concentrate producer's secondary lines. A Coca-Cola bottler could thus turn down Coca-Cola's lemon-lime drink, Sprite, in order to bottle Seven-Up. The manufacturing process for concentrate was .simple and required little capital investment. For regular soft drinks, concentrate producers typically sold only flavor concentrate, and bottlers purchased the sweetener themselves. Coca-Cola was an exception, and had traditionally sold syrup that already contained sweetener, charging its bottlers the list price of sweetener. In 1980, Coca-Cola began to sell concentrate without sweetener to its largest bottlers. For diet drinks, all producers sold their bottlers both concentrate and artificial sweetener. The cost of concentrate represented
11
A concentrate producer's most significant costs were for advertising, promotion, market research, and bottler relations. Marketing programs were jointly implemented and financed by concentrate producers and bottlers. The concentrate producers usually took the lead in developing the programs, particularly in product planning, market research, and advertising. Bottlers assumed a larger role in developing trade and consumer promotions. Bottlers usually paid for two-thirds of promotional costs, while advertising costs were typically split 50/50. Concentrate producers employed extensive sales and marketing support staff to work with and help improve the performance of their franchised bottlers. They set standards for their bottlers and suggested operating procedures. Concentrate producers also
negotiated directly with their bottlers' major suppliersparticularly sweetener and packaging suppliersto encourage reliable supply, faster delivery, and lower prices, Bottlers purchased concentrate, added carbonated water and sometimes sweetener, bottled or canned the soft drink, and delivered it to customer accounts. Major concentrate producers used "store door" delivery, whereby soft drinks were delivered directly to
12
individual retail outlets, bypassing retailers' warehouses. Bottler route salespeople-stocked and maintained food store shelves. Small national brands, such as Shasta and Faygo, distributed through food store warehouses. Although retailers earned higher gross margins on warehouse-delivered soft drinks, store door delivery yielded higher profit per square foot due to lower in-store handling costs and faster turnover of inventory. The bottling process was extremely capital-intensive and involved specialized, high-speed lines. Lines were interchangeable only for packages of similar size and construction, thus each major package type required separate bottling equipment Bottling and canning lines cost from $100,000 to several million dollars, depending on volume and packaging type. The total number of bottling plants in the United States had fallen from 2,613 (1974) to 1,522 (1984), and 780 (1990). "Megaplants" produced as many as 2,000 cans per minute. In 1989, the seven largest bottlers operated 176 plants and produced 46.5% of industry volume. Bottlers packaged soft drinks in various types of containers. In 1960, returnable glass bottles accounted for 94% of soft-drink
13
volume, non-returnable glass bottles accounted for 2%, and steel and aluminum cans for 4% Throughout the 1960s, 1970s, and 1980s, a host of new packages was introduced. By 1990, cans accounted for 52% of the market, plastic bottles 30%, nonreturnable glass bottles 12% and returnable glass bottles 6%. Forty-one percent of total can production was sold to the carbonated soft drink industry, with five can companies accounting for 98% of sales to the soft drink industry. Plastic containers were supplied primarily by six firms that sold 20% of their plastic container production to the soft drink industry. Bottlers purchased their own packages; however, each of the concentrate producers negotiated with can and plastic container suppliers about package price, availability, and design. In addition to packaging, bottlers purchased nutritive (or caloric) sweeteners such as sugar and high fructose corn syrup (HFCS) for use in regular soft drinks. The soft drink industry accounted for a large portion of total consumption of nutritive sweeteners. Concentrate accounted for approximately 20% of bottlers' cost of goods sold, packaging approximately 35%, and nutritive sweeteners
14
approximately 10%. Labor and fuel accounted for most of the remaining variable costs.. There were four types of soft drink bottlers. The first were independent, privately owned bottlers. Many of these were small and marketed only Coca-Cola or Pepsi-Cola products, although others achieved substantial growth by buying up franchises in contiguous areas and by taking on secondary brands such as Dr Pepper or Seven-Up. A second group of bottlers consisted of large, publicly owned, multi-brand franchise firms, based in major metropolitan areas. The third category of bottlers were Coca-Cola and Pepsi-Cola franchises that were owned by diversified companies. The fourth category of bottlers included the operations of concentrate producers themselves. The types of bottlers used varied among concentrate producers and changed over time. Fountain sales involved the sales of syrup to restaurants or convenience stores, which mixed the syrup with carbonated water for immediate consumption. Soft drink sales were extremely profitable for fountain outlets with gross margins in the range of 75%, Coca-Cola served its fountain outlets with a dedicated sales force, by-passing the local bottler. Local Pepsi-Cola bottlers handled
15
the fountain accounts in their territories, and sold syrup to the local outlets of companies carrying Pepsi products. In the vending channel, bottlers purchased, installed, and supplied machines. Concentrate producers often offered rebates to encourage their bottlers to invest in vending machines and allocate all or most of the vending slots (usually four to six per machine) to their products. One source estimated that Coca-Cola bottlers owned 50% more vending machines in the United States than Pepsi bottlers. On average, bottlers obtained significantly higher margins through vending machines than from other channels. Coca-Cola bottlers, for example, often earned over half of their total profits from vending operations. There was also a host of smaller channels for soft drinks. Restaurants, caterers, and institutional buyers such as airlines often served soft drinks in bottles and cans rather than from a fountain. Convenience stores accounted for an increasing volume, particularly through "single serve" cold cases. Some mass merchandisers also allocated shelf space to soft drinks. Sales to these diverse outlets were handled by local bottlers.
16
CHAPTER III
History of coke The Worlds Most Powerful Brand Indian history Coca-Cola in India Company Profile of(HCCBPL Atmakur unit)
17
History of Coke
Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, who sold the syrup mixed with fountain water as a potion for mental and physical disorders. The formula changed hands three more times before Asa D. Candler added carbonation and by 2003, Coca-Cola was the worlds largest manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with more than 400 widely recognized beverage brands in its portfolio. With the bubbles making the difference, Coca-Cola was registered as a trademark in 1887 and by 1895, was being sold in every state and territory in the United States. In 1899, it franchised its bottling operations in the U.S., growing quickly to reach 370 franchisees by 1910. Headquartered in Atlanta with divisions and local operations in over 200 countries worldwide, Coca-Cola generated more than 70% of its income outside the United States by 2003.
18
International expansion
Cokes first international bottling plants opened in 1906 in Canada, Cuba, and Panama. By the end of the 1920s Coca-Cola was bottled in twenty-seven countries throughout the world and available in fifty-one more. In spite of this reach, volume was low, quality inconsistent, and effective advertising a challenge with language, culture, and government regulation all serving as barriers. Former CEO Robert Woodruffs insistence that Coca-Cola wouldnt suffer the stigma of being an intrusive American product, and instead would use local bottles, caps, machinery, trucks, and personnel contributed to Cokes challenges as well with a lack of standard processes and training degrading quality. Coca-Cola continued working for over 80 years on Woodruffs goal: to make Coke available wherever and whenever consumers wanted it, in arms reach of desire. The Second World War proved to be the stimulus Coca-Cola needed to build effective capabilities around the world and achieve dominant global market share. Woodruffs patriotic commitment that every man in uniform gets a bottle of Coca-Cola for five cents, wherever he is and at whatever cost to our company was more than just great public relations. As a result of
19
Cokes status as a military supplier, Coca-Cola was exempt from sugar rationing and also received government subsidies to build bottling plants around the world to serve WWII troops.
20
leadership, stability, and global reach, incorporating its ability to cross both geographical and cultural borders. From the beginning, Coke understood the importance of branding and the creation of a distinct personality. Its catchy, wellliked slogans (Its the real thing (1942, 1969), Things go better with Coke (1963), Coke is it (1982), Cant beat the Feeling (1987), and a 1992 return to Cant beat the real thing) linked that personality to the core values of each generation and established Coke as the authentic, relevant, and trusted refreshment of choice across the decades and around the globe.
21
The world's most recognized trademark in the World! It is recognized by 94% of the world's population
22
Indian History
India is home to one of the most ancient cultures in the world dating back over 5000 years. At the beginning of the twenty-first century, twenty-six different languages were spoken across India, 30% of the population knew English, and greater than 40% were illiterate. At this time, the nation was in the midst of great transition and the dichotomy between the old India and the new was stark. Remnants of the caste system existed alongside the worlds top engineering schools and growing metropolises as the historically agricultural economy shifted into the services sector. In the process, India had created the worlds largest middle class, second only to China. A British colony since 1769 when the East India Company gained control of all European trade in the nation, India gained its independence in 1947 under Mahatma Ghandi and his principles of non-violence and self-reliance. In the decades that followed, selfreliance was taken to the extreme as many Indians believed that economic independence was necessary to be truly independent. As a result, the economy was increasingly regulated and many sectors were restricted to the public sector. This movement reached its peak in 1977 when the Janta party government came to power and Coca23
Cola was thrown out of the country. In 1991, the first generation of economic reforms was introduced and liberalization began.
24
Coke in India
Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveal its formula to the government and reduce 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 presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Cokes acquisition of local popular Indian brands including Thums Up (the most trusted brand in India), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also strong consumer preference. This combination 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.
25
From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one of the countrys top international investors. By 2003, Coca-Cola India had won the prestigious Woodruf 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 Company reached breakeven profitability in the region for the first time. Encouraged by its 2002 performance, CocaCola 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 and assurance 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
26
pushcarts that were used to navigate the narrow alleyways of the cities. In addition to its own employees, Coke indirectly created employment for another 125,000 Indians through its procurement, supply, and distribution networks. Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in 1997 as Vice President, Marketing and was instrumental to the companys success in developing a brand relevant to the Indian consumer and in tapping Indias vast rural market potential. Following his marketing responsibilities, Gupta served as Head of Operations for Companyowned bottling operations and then as Deputy President. Seen as the driving force behind recent successful forays into packaged drinking water, powdered drinks, and ready-to-serve tea and coffee, Gupta and his marketing prowess were critical to the continued growth of the Company.
27
28
Acquired Assets Value: Guntur--Rs.130 MM Vijayawada - Rs.117 MM Old Vijayawada plant area is 7691 square meters. With a 240 Bottles per Minute line the old Vijayawada plant had no capability to meet either the production target or the quality standards of the Company. Old Guntur plant area is 6520 square meters. The plant had a 240 Bottles per Minute line. The status and condition of Guntur plant was similar to that of Old Vijayawada plant.
Market Potential (of the Industry): Guntur 98-4 MM Cases Vijayawada 98-3 MM Cases Both Old Vijayawada and Guntur territories had a strong distribution network. On acquiring the territories Company has adopted the entire distribution system for the Company advantage.
29
Unit Policy To be the "Role Model Operation" by continuously improving unit excellence in quulity,productivity,sales, customer satisfaction and environmental friendliness through implementing "Quality system" at Atmakur unit
Environment Policy Unit is located between the green pastures of the Atmakur village. The plant is covered on all sides with green fields. Coca Cola is in business of beverages that refresh people. Atmakur unit carries out operations in ways that preserve , protect and enhance the environment in which the employees work. Atmakur unit's environment activities are guided by the eKO system, which provides a framework to transform this principle into action.
30
Facility location
Selection of a location is a strategic decision and requires thorough analysis. Why Coca-Cola has chosen Atmakur for the construction of its plant? Abundant water resource (River Krishna and Bore Wells).
31
Tax free zone Availability of site for starting up the plant. National Highway 5 (NH 5) connecting Vizag, Calcutta and Chennai. Vijayawada is the head office for Southern Railways. Availability of casual labor. Nearness to public transport.
LAYOUT: Product Layout The project is planned for three lines: 600 Bottles per Minute RGB line 120 Bottles per Minute PET line 240 Bottles Per Minute Maaza line With this plan a total of 40 acres has been purchased. The plant constructed area is 18 acres meant for two lines. A single 600 Bottles per Minute line purchased from KHS, Germany. Recently second line was started to meet the demands in peak season. The utility equipment is sized for two lines and is procured from renowned suppliers. The total project cost is Rs. 550 MM.
32
(For Layout refer to appendices) Inventory is maintained on First In First Out basis. Production is based on market demand, floor stock and empty glass bottles. F C S H S S O A M K RU IT A E (P A E ) F T A U N 1. Startup-March 1999 2. Stabilization-April-June 199
3. Strengthening -......................
4. Superiority - July 2000- June 2001 5. Scope 1. A:- Start up - Plant Details Abundant water resources A zero discharge GFO Plant is designed for three lines Total Plant Area is 40 acres -1742,000sq.ft. Total constructed area is 18 acres Current construction is for 2 lines Total Project Cost - Rs 550 600 BPM KHS line
33
B:- Start up Challenges Lend lease delay in plant hand over Plant was to face the season demand during The start up Transfer of old Vijayawada employees Transfer of old Guntur employees Age factor of workmen Training and learning Unionized work culture Wage parity and Motivation
PRS and Warehouse systems have been launched o been launched o Motivational programs launched 3. Strengthening - Savings is plant Strength purchase Carbondioxide tank Timer in ETP Cartridges life optimization Water Ratio reduction Economics of scale in chemical Kaizen - small improvement concept has
Optimization during end of run Company owned truck Utilization Ware house labor productivity Warehouse Systems
SLP
in financial reporting
5. Scope
36
capacity of utilities and constructed area Huge Guntur and Vijayawada Acquired
PREPERATION OF CARBONATED SOFT DRINK A CSD is a mixture of concentrate , sugar syrup, CO2 and treated water. WATER TREATMENT PLANT: At all carbonated and non-carbonated soft drink manufacturing locations, the source water is tested for all requirements of potable drinking water. It is protected and treated regularly to maintain the standards. Process: 1. The Bore Water is drawn through sealed pipelines into storage tank. 2. Chlorination - disinfecting water from micro-organisms.
37
3. Sand Filtration - to remove dirt, clay and other particles 4. Carbon Filtration - to remove organic compounds, color, odour and taste. 5. Reverse Osmosis suspended particles are removed. 6. Polishing Filtration activated carbon is removed.
BOTTLING:
The glass bottles returned from the market are thoroughly cleaned with specially formulated cleaning agents (caustic) by Bottle Washers.
Any damaged bottles are taken out after thorough visual inspection. The bottles are then transported to the filler using automated conveyor system.
First CO2 is sent into the bottle through pressurization, the beverage is then filled into the glass containers using high-speed automated filling machine, and crowns are fitted to them.
human hands. The water is then drawn through sealed pipelines into the storage tanks in secured water treatment areas of the manufacturing plant.
PRODUCT
"Anything that can be offered to a market for use , acquisition or to gain attention that might satisfy a want or need is a Product."
Core Product
Secret
Gives a refreshing feeling to the consumer. Actual Product Offers additional consumer services and benefits. Coca-Cola Atmakur unit produces the following brands:
COCA-COLA NO: I Coca-Cola Created in Atlanta, Georgia by Dr.John Styth Pemberton, Coca-Cola was registered as a trademark in 1887 and by 1895 Coca-Cola was being sold in every state and territory in the United States. In 1899, the Company began franchised bottling operations in the United States. Today, Coca-Cola in virtually every part of the world. The Coca-Cola Company has nearly 400 beverages in its portfolio. LIMCA: It's a Light and Lemony is thirst-quenching beverages features a fresh, light lemon-lime taste and fun-loving attitude. It's a homegrown, national treasure in India, where it was acquire by the Coca-Cola Company in 1993. The product's invigorating taste and cloudy. Limca continues to build a loyal following among young adults who love the
40
lighthearted way it complements the best moments of their lives. Grab a Limca and go. FANTA: A favorite in Europe since the I940's, Fanta was acquired by the Coca-Cola Company in 1960. Fanta Orange is the flavor, responding about 70% of sales, but other citrus and fruit flavors have their own solid fan base. Fanta sells best in Brazil, Germany, Spain, Japan, Italy and Argentina. Fanta distribution was increased in the U.S. in 2001 with the return of four flavors: Orange, Strawberry, Pineapple and Grape. Orange, the biggest seller, is now available in most of the Country.
THUMSUP: It's a Strong Cola Taste, Exciting Personality. Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by the Coca-Cola Company in 1993. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men
41
from the boy's, it's tag line says it all: Thums Up I Want My Thunder.
SPRITE:
It's a Clear, Crisp, And Refreshing. Introduced in 1960, Sprite is the world's leading lemon-lime flavored soft drink. Sprite is sold in more than 190 countries and ranks as the No.4 soft drink worldwide, with a strong appeal to young people. Millions of people enjoy Sprite because of its Crisp, clean taste that really quenches they thirst. But Sprite also has an onest, straight forward attitude about things that sets ii apart from other soft drink. Sprite encourages us to be true to who you are and to obey your thirst.
MAAZA:
"Yaari-Dosti Taaza Maaza". With the real fruit taste kids love, plus added calcium, Maaza's tagline, " Yaari-Dosti Taaza Maaza " means in Hindi " Friendship
42
moments with fresh Maaza ". Maaza was introduced in India in 1984 as a non-carbonated mango fruit drink. It was acquired by the CocaCola Company in 1993 and it's and is currently available in three flavors: Mango, Pineapple, Orange-------------------plus added calcium.
KINLEY:
Introduced in India in August 2000, Kinley is purified bottled water. In a country where many people are concerned about reliable drinking water, Kinley delivers a product that safe suitable for consumers and their families. Within ten months of its launch, Kinley had emerged as India's number two packaged water and is currently the number three Coca-Cola product in India. Especially popular among adults who seek a better quality of life and a healthier lifestyle, Kinley is available in a range of packaging including 500ml, 1 liter, and 2 liter PET bottles, and 5 liter, 15 liter, 20 liter and 25 liter bulk jars for in-home consumption. These are available in Bottles, Can's and Fountains. Each with a different flavors giving satisfaction to the consumers. High quality standards are maintained.
43
44
MARKETING RESEARCH:
Introduction:
Marketing is a composite process in a society by which the demand structure for economic goods and services is intelligently anticipated and satisfied through conception, promotion exchange and physical distribution of such goods and services which can satisfy wants, needs and desires of consumers or users in the market place.
Marketing program starts from the product idea and doesnt end until customer wants are adequately satisfied. Customer is the pivot around which the entire marketing operations revolve. Alpha and Omega of marketing customer satisfactory. Learning more about customer and dealers and about marketing mix generally is the heart of marketing research.
Marketing research is only one branch of the marketing information system. Market means actual and potential customers. Market research is the systematic and intelligent investigation or
45
study of the who, what, where, when, why and how of potential and actual buyers. It deals with research on customer demand
46
Market research has wider meaning and scope. Market research is the systematic gathering, recording and analyzing of data about problems connected with market place that is, problems relating to product, price, promotion and distribution of 4Ps of marketing mix. Marketing research is the systematic problem analysis, model building fact for the purpose of improved, model building and fact for the purpose of improved decision and control in the marketing of goods and services. -Philip Kotler Marketing research serves two major functions, it provides information for decision making and it develops new knowledge. -Rebert Ferber
The American Marketing association defines marketing research as the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.
47
Problem Formulating
Sample designing
Data Collecting
Data Processing
Presentation
48
1.
Problem Formulation :
The first and foremost step in any research procedure is problem formulation or problem identification. It involves developing and understanding of the problem, which requires the attention of researchers, and composing it after considering all factors inspiring on the problem.
2.
3.
form. For this purpose, usually a structured questionnaire is prepared which lists all relevant questions in serial. The questionnaire should always be standardize so that data are collected not only with speed and accuracy but are also comparable.
4.
Sample designing :
After preparing data collection forms, researchers have to identify the respondents to be contacted. It may not be always possible and even necessary to seek information from the whole population or universe of the respondents the researcher usually selected sample of respondents
Sampling techniques: Random sample. Systematic Sample. Cluster Sample. Stratified Sample.
50
5.
Data collection :
Primary and secondary data are collected through different
sources. Primary data are collected in 4 ways : Mail survey by questionnaire. Telephone survey. Personnel interview or field survey and Panel research.
6.
Report preparation :
The end result of all the above exercise is the report to be
7.
Presentation :
The researcher should not try to over whelm management with
lots of numbers of fancy statistical techniques, this will lose them. The researcher should present major findings that are relevant to the major marketing decision facing management.
51
STATEMENT OF PROBLEM:
Finding the perception of Retailers towards Coca-Cola products, distribution, pricing and promotional activities of CocaCola products.
52
11.The perception of retailers, about the production defects. 12.The perception of retailers regarding credit facilities offered by Coke.
54
Percentage 90 10 100
55
percentage
56
Table showing the reasons given by retailers for stocking Coke products:
Category Quality Brand Image Advertisement Profit Margin Brand Loyalty Total
Percentage 12 40 18 10 20 100
Inference: Most of the retailers are stocking the Coke products for its Brand Image.
Graph showing the reasons given by retailers for stocking Coke products
57
40 35 30 PERCENTAGE 25 20 15 10 5 0
y n Im ag e en t Q ua lit m ar gi er tis e
percentage
Pr of it
Br an
ad v
CATEGORY
Br an
lo ya
lt y
Name and Combinations of Brands Coke Coke & Pepsi Coke, Pepsi & Others Coke & Others Total 12 25 38 25 100 15 25 38 25 100 No. of respondents Percentage
Inference: Out of 100 retailers, very few stocks only Coke. Normally they stock combination of different brands.
Graph showing No. of retailers who stock combination of different brands soft drinks
59
40 35 30 PERCENTAGE 25 20 15 10 5 0
ok e th er s Pe O th ok e & C er s ps i
percentage
&
ok e
Pe p
si
& C ok e, C
COMBINATIONS OF BRANDS
Table showing the perception of the retailers regarding the profit margin offered by the Coke Company:
60
Percentage 20 30 50 100
Inference: 50 % of the retailers consider the profit margin offered by the Coke Company is low. Where as 50% of the retailers consider it as good & reasonable.
Graph showing the perception of retailers of profit margin offered by Coca-Cola Company
61
Table showing the perception of the retailers regarding the supply of goods on time of Coke products:
Category
No. of respondents
Percentage 62
84 12 04 100
84 12 04 100
Inference: 84 % of the retailers are happy with the timely supply of the goods. But some of the times, some retailers receive goods little late. This may be because of transportation problem or due to any other reasons.
63
percentage
90 80 70 PERCENTAGE 60 50 40 30 20 10 0 Always Occasionally Ne ver on time on time CATEGORY
Table showing the perception of the retailers regarding their relationship with the distributors and salesmen:
Category
No. of respondents
Percentage 64
70 24 06 100
70 24 06 100
Inference: 70% of the retailers are happy with their relationship with the distributors. But 6% had certain complaints against their distributors such as delay in supply of goods, ruddiness etc. Such kind of complaints comes very rarely.
Graph showing the perception of the retailers regarding their relationship with the salesman and Company
65
percentage
Category Always
No. of respondents 50
Percentage 50 66
35 15 100
35 15 100
Inference: 50% of the retailers recommend Coke products. Always, a retailer cannot recommend Coke products to the consumers. Every consumers taste, choice etc, varies.
67
percentage
Never
68
Table showing the factors that influence the consumers to take their decisions According to the retailers:
Category Quality(good) Taste Prices Brand Image Advertising Cant say Total No. of respondents 12 27 08 30 20 03 100 Percentage 30 20 8 20 16 6 100
Inference: According to retailers, the consumers purchase Coke products for quality, brand image, taste and advertising a little. The percentage of above category of consumers differs from time to time.
69
Graph showing the factors that influence the Consumers to take their decisions according to the retailers
30 25 PERCENTAGE 20 15 10 5 0
l it y Ta ste Br P an ric e d A dv Im er a tis ge em C en an t 't sa y Q ua
percentage
CATEGORY
70
Table showing the perception of retailers regarding the promotion campaign of Coke Company:
Percentage 10 66 18 06 100
Inference:
66% of the retailers consider the promotion campaign of the company as good.
71
Graph showing the perception of retailers regarding the promotion campaign of Coke Company
percentage
Below average
CATEGORY
72
Percentage 83 17 100
Inference: 83% of the retailers are happy with the rate of which replacements are made. 17% of the replacements cannot be done due lack of stock or some other problem.
73
74
Percentage 24 76 100
Inference: It can be observed that 76% of the retailers are satisfied with the production.
75
76
Table showing the perception of retailers regarding credit facilities offered by Coke:
Percentage 30 70 100
Inference: According to retailers, 70% of the retailers are not satisfied by the credit facilities offered by the Coke Company.
Graph showing the perception of retailers regarding credit facilities offered by Coke
77
CATEGORY
FINDINGS
1. The retailers are happy with the Taste and Brand Image of Coke.
78
2. 85% of the retailers are of the opinion that if quality is improved to the standards of the W.H.O. the demand or sales may increase. 3. Most of the retailers are happy with the choice of flavours offered by Coca-Cola products. 4. 83% of the retailers are happy with the rate of time at which defective products of Coke are replaced. 5. 66% of retailers consider the promotion campaign of Coke products as good. 6. Out of 100 retailers, only 14% of them stock only Coke products. Most of them deal with combination of different brands. 7. 50% of retailers consider the profit margin offered by Coke is not satisfied and 50% of retailers consider the profit margin offered by Coke is ok. 8. 50% of the retailers recommended consumers to buy Coke. 9. Retailers are happy with timely supply of goods. 10. Retailers are satisfied to some extent with the credit facilities offered by Coke. 11. Most of the retailers are dealing with the Coke products from last 5 to 10 years.
79
12. Most of the retailers are happy with the relation that they maintain with the Company as well as with salesmen and with the distributor.
80
RECOMMENDATIONS
1. The company should give more schemes to retailers so that they can promote the brand on their own. 2. If possible, company should introduce a new variant of a product with a lesser price to compete with the other brand. 3. Company should market more of those products, which are demanded more. 4. Company should provide some POP (Point of Purchase) materials like posters, stickers, glow sign- boards, etc., to be displayed in the retailers shop. 5. Company should improve the quality and if possible meet the standards of W.H.O. 6. Company should concentrate on advertising effectively of all range of products through T.V. media and some extent in print media. 7. The company can maintain brand loyalty of retailers and consumers and can improve the companys goodwill by providing gifts.
8. The company should maintain standard in their products. 9. The retailers complaints must be looked on time by having sales executives meet regularly.
81
10. The competition being so stiff, the company must try to maintain its standard and have to implement new marketing strategies to attract the consumers. 11. Now days, consumer is the king. With so many new entrants in the market, brand loyalty has become a thing of past. Therefore, the company must keep offering something new to keep the consumers interest alive. 12. The consumers can be more attracted to buy Coke products by having more number of lucky draws, complimentary gifts etc. 13. The Price should be maintained same at all outlets.
82
CONCLUSION
The main objective of the project is to find out the attitude and behaviour that the retailers have about Coke products. So that the problems and complaints can be noted out and necessary steps can be taken to overcome the complaints and problems. Coke Company have been in the world market for many years and has developed a standard quality, brand loyalty and image among dealers, consumers and retailers. In the present modern world, competition is at the top, still Coke has laid down a strong base in the world market and competing with other brands of soft drinks in India. The retailers are satisfied with the quality, price and promotion of Coke products. Some retailers are of the opinion that the profit margin offered to them should be increased to little extent. Some retailers have been dealing with the Coke products from last few months and continue to be brand loyal to them. Coke products have a good brand image, an important reason for this may be because of its strong foundation in the world market. Coke has its products across 200 countries around the world. In India, Hindustan Coca-Cola beverages pvt ltd., is producing and distributing Coke products. The company has good image in the market,
83
therefore company can exploit this to its advantages as any new products introduced by it would be accepted by the market. The other side, say threats may be: As the content of pesticides in soft drinks is proved, so try to
maintain min. level which would not affect the health. As some production complaints are occurring frequently, try
84
References
TITLE
1. Marketing Management
AUTHOR
Philip Kotler S.A.Sherlekar P.N.Reddy
2. Advertising
Ogilivia Advertising
3. Advertising Management
Kings Book
5. Research Methodology
C.R.Kothari
6. Internet Information
www.coca-cola.com
85
Name of the retailer: . Add: ... 1. 2. 3. Do you deal with COKE? If no, why ... If yes, which brand do you stock of the following? Yes / No
Thumsup Kinley
4.
Limca
Fanta
Maaza
Thumsup Kinley
5.
Limca
Fanta
Maaza
Taste Service
7. 8.
Price
Brand image
Yes / No
Did you face any problem with COKE? If yes what kind of problems do you have of the following?
Taste Supply
9.
price Others
Quality
Replacement
Yes / No
86
10. 11.
Do you think sales of COKE is more when compared to others? No If no, what is the reason of the following?
Yes /
Lack of Advertisement
12. Does the Company supply goods on time? Yes / No 13. Do you think the Company attracting people day-by-day? Yes / No 14. What is your perception about the COKE promotional campaign?
Good
15.
Average Less
Satisfactory
16.
87