project coca cola & pepsi. 21 may 13
TRANSCRIPT
Project Report
On
“ COKE VERSUS PEPSI COMPETITION IN INDIA, WITH
REFERENCE TO HYDERABAD ”
Submitted in partial fulfillment for the award of
Post Graduate Diploma in Management
By
Ashutosh Kumar
Roll Number [09]
To
ICBM - School of Business Excellence
Hyderabad.
2012-2014
Declaration
This is to certify that the Report on “ COKE VERSUS PEPSI
COMPETITION IN INDIA, WITH REFERENCE TO
HYDERABAD ” is my bonafide work , carried out under the
guidance of Mr. Mahesh of……….. and Prof. M . S . Nair of
ICBM – School of Business Excellence. This Report has not been
submitted to any other University / Institution, for award of any
degree / diploma.
Date : [ ASHUTOSH KUMAR ]
ACKNOWLEDGEMENTS
I would like to express my sincere gratitude to Mr. J.K. Choudhary
for giving me an opportunity to work on a live project. I am very grateful
to Mr. Anjani Kumar ……………. for giving me proper guidance in
completing the project from beginning. I am also very grateful to Sales
team leader Mr. Apoorva Dubey………….. and Mr. Vishal
Ranjan…………….. who had given their guidance which helped me to
complete my project successfully. At last I want to thank all the staffs of
human resource, stores, shipping and marketing for their co-ordination
without whom it would have been very difficult for me in achieving my
target and making the project successful.
I also wish to express my deep gratitude to Prof. S. Zarar and Prof.
M. S. Nair of ICBM – School of Business Excellence for all the help,
support, guidance and encouragement extended to me during the project
work.
Date : [ ASHUTOSH KUMAR ]
Preface
Any training programme sharpens those instincts, which serve as a
fulfillment of theoretical grounding. As the present day business world is very
complex, where Human Ingenuity and Acumen are sharpened by highly
specialized knowledge in various branches pertaining the running and
conducting. The research project is ´COKE VERSUS PEPSI
COMPETITION IN INDIA, WITH REFERENCE TO HYDRERABAD ” The
different organized markets that I have chosen for research was main areas of
Hyderabad.
Research is a feedback that any organization seeks for the purpose of
effective policy and decision making. It is the systematic problem analysis,
model building & fact finding for the purpose of important decision-making &
control in the making of goods and services. Summer Project is a part of the
curriculum so that students get exposed to the practical side our theoretical
know-how. This is basically designed to the real life situation. In this training
programme, the students use their academic knowledge practically which
polishes the decision - making abilities of MBA graduates. For developing
healthy managerial and administrative skills of potential managers, it is
necessary that theoretical knowledge be supplemented with exposure to real life
business environment.
Conventional academic medium cannot sell anything practically unless
down to earth, real and practical market knowledge is available to make hard
core corporate decisions and strategies. This research work gave me the
opportunity to apply conceptual skills to practical application and to learn the
art of conducting study and presenting its findings in a systematic and scientific
way.
CONTENTS
HEADINGS PAGE NO.
1. Introduction - 5
2. Company Profile - 23
3. About Competitor - 25
4. Rationale of the study - 26
5. Distribution - 27
6. Market Map of Ranchi - 31
7. Research Methodology - 32
8. Observation - 36
9. Findings and Analysis - 40
10. Conclusion - 54
11. Suggestions & Recommendations- 55
12. Limitations - 56
13. Annexure - 57
Chapter 1
RATIONALE 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. It’s my gratitude to work with Coca Cola Company especially in
marketing department. I have been placed their in sales and distribution
department for my internship. The research work was not as 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. 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 presale concept.
RESEARCH OBJECTIVES
PRIMARY OBJECTIVE:
TO ANALYZE HOW COKE AND PEPSI LEARN TO COMPETE IN INDIA, WITH
REFERENCE TO HYDERABAD.
SECONDARY OBJECTIVE:
1. To analyze the distribution channel system.
2. To check the brand availability.
3. To analyze the effectiveness of the schemes launched by the company.
4. To find the retailer’s satisfaction.
5. To ensure the visibility of the product.
DISTRUBUTION
Distribution of coca cola is done basically in two ways:-
a) Direct operation.
b) Indirect operation.
But the distribution of Coca Cola varies from place to place. In India
Coca Cola is doing his distribution by direct operation, indirect operation & by
both also. Especially in Ranchi coca cola is doing its distribution by both direct
operation & indirect operation.
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(PJP),
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.
DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY
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.
DIRECT OPERATION:
Here company does its distribution by himself. There is no role of middle man.
Every activities of a distribution process is under the control of the company.
Here coca cola runs its own vehicles in that particular area for the distribution.
By direct operation company gains a lot. The direct operation of the coca cola is
as follows:-
Chapter 2
COMPANY PROFILE
HISTORY OF COCA-COLA
JOHN PEMBERTON
The world has changed in many ways since pharmacist; John Stith
Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta,
Georgia. The name and the product mean so many things to hundreds of
Millions of consumers around the globe. Coca-Cola products 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.
May1886 - 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 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.
1917 - 3 Million Coke's sold per day. "COCA-COLA" is the world’s
most recognized trademark.
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. 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 10 Coca-Cola
bottling plants to serve American servicemen overseas. Eventually, 64 plants
were set up during WWII.
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
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 new formula 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 Lincoln Center. 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 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. Coca-Cola
management had to decide: Do nothing or "buy the world a new Coke". They
decided to develop the new formula.
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 allow 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 was held in Atlanta, Georgia, the home of
Coca-Cola.
HISTORY OF PEPSI
PEPSI, company founded by CALEB D BRADHAM in 1890 at North
Carolina in USA. Its CEO is ROGER ENRICO and in India Pepsi –CO.
Holding its chairman MR.RAJIV BAKSHI. The head quarter of Pepsi-CO.in
India is at Gurgaon. Presently it is operated in 196 countries.
Pharmacist CALEB invented it to cure the disease ―DISPARSIA‖. It is from
this word that was related to Pepsi. Soon it entered market American
market as soft drink which at that time was mostly dominated by coca-cola,
but soon Pepsi was able to dominate the cola market and there after it has
been no looking back. Pepsi and coca-cola are engaged in ferocious cold
war that has taken the whole world by storm.
Pepsi stands 51 positions among the fortunate 500 companies of the
world. Its total capital is approximately $3000 crore and total sales annually is
worth $37 crore, half of which comes from beverages and other half from the
sack foods division. The beverages arm of the Pepsi co. Is Pepsi-cola
company and the snack –food company is called frinto –lay –inc. The year
1998 is the centennial year of Pepsi. Its total profit in the year 1996-1997 was
worth Rs.45 crore approx. The total number of employees engaged in this
business is 4.25 lakhs globally.
COCA COLA 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 presence with a deal that gave Coca-Cola
ownership of the nation's top soft-drink brands and bottling network. Coke’s acquisition of local
popular Indian brands including Thumps Up (the most trusted brand in India), Limca, Mazaa, 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 Sun fill hit the
market.
From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one of the
country’s top international investors. 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 2002performance, 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 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, pen-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 employment for another 125,000 Indians
through its procurement, supply, and distribution networks.
ORGANISATION CHART
VICE PRESIDENT
REGIONWISE
AGM
PLANT MANAGER
RTM MANAGER
FINANCE MANAGER
CHANNEL MANAGER
SALES MANAGER
MARKETING EXECUTIVES
AREA CAPACITY
DEVELOPMENT MANAGER
SALES TRAINEE
CEO
HIERARCHY OF THE ORGANISATION
CHIEF EXECUTIVE OFFICER
RVP
AGM/AOD
FINANCE RTM MANAGER
MARKETING SALES MANAGER
PRODUCTION HR
ACCOUNTS MARKETING EXECUTIVES
RTM EXECUTIVE
STL
MD
PURCHASE
ASM
R&D QUALITY
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. This move allowed both companies to
offer products that were affordable to 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 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.
MEDIA PROMOTION
To give a broad look to the marketing strategies of Coca-Cola the following points can
be taken into consideration regarding their opportunity and threat analysis.
Coca-Cola has already dominated many existing brands of Pepsi; however it may be
possible that in the next few years Coca-Cola is going to eat the entire soft drink
market.
Again it is the threat that the monopoly may not exist after boycotting the Pepsi as
because of the chances of arrival of the local brands, these companies may be a threat
for Coca-Cola in the next few years.
Perhaps the current largest threat for Coca-Cola apart from Pepsi is a spiritual and
patriotic issue which is also a threat for Pepsi, this is the spiritual media channels like
Astha and Sanskar.
VISION
Profit: maximizing return to shareowners while being mind full of Our overall responsibility
Planet: Being a responsible global citizen that makes a difference.
People: being a great place to work where people are inspired to be the best they can be.
Partners: nurturing a winning network of partners and building mutual Loyalty.
Portfolio: bringing to the world a portfolio of beverage brands that anticipate and
satisfy people desire and need.
MISSION
Create consumer products services and communications customer 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.
ACHIEVEMENTS
1. Coca-Cola Wins Golden Peacock Awards For Environment Management In
India.
2. Coca-Cola India Wins Golden Peacock Global Award for Corporate Social
Responsibility.
3. Community Recognition to Coca-Cola India.
4. ’Water Efficient Unit’ Award to Coca-Cola India.
5. Coca-Cola wins Bhagidari Award- Fourth time in a row.
6. World Environment Foundation Awards - 2005 Golden Peacock
Environment Management Award to Kaladera unit
PRODUCT PROFILE
DIFFERENT BRANDS OF COMPANY
The Coca-Cola Company offers a wide range of products to the customers including
beverages, fruit juices and bottled mineral water. The Company is always looking to
innovate and come up with, either complete new products or new ways to bottle or
pack the existing drinks. The Coca-Cola Company has a wide range of products out of
which the following products are marketed by HCCBPL:
In the Cola Section:
In the Lemon Section
In the Orange section:
In the mango section:
In the juice section :
In the Soda Water and Bottled Mineral Water section:
BRANDS TAGLINE
Thums up - Taste the thunder
Coca-Cola - Open happiness, Thanda matlab Coca-Cola
Sprite - Seedhi baat no bakwaas , clear hai
Limca - Fresh ho jao, mazza taazgi ka
Fanta(Apple) - Go bite
Mazaa - Bina guthli wala aam
BRAND AMBASSDORS
Thums up - Akshay Kumar
Coca-Cola - Aamir Khan, Imran khan
Sprite - Shahrukh Khan
Fanta - Genelia D’souza
Limca - Riya Sen
Mmpo- Nikhil Chinnappa
PRODUCTS WIDTH AND DEPTH
VARIAN
T
200ML 250ML 300ML 330ML 500ML 600ML 1LT 1.25LT 1.5LT 2LT
COCA
COLA
Y N Y Y N Y N Y N Y
THUMPS
UP
Y N Y Y N Y N Y N Y
MAZZA N Y N N Y N 1.2LT N N N
LIMCA Y N Y Y N Y N Y N Y
DIET
COKE
N N N Y N N N N N N
FANTA Y N Y Y N Y N Y N Y
SPRITE Y N Y Y N Y N Y N Y
MMPO N N N N 400ML N Y N N N
MMNF N N N N 400ML N N N N N
KINLEY
WATER
N N N N Y N Y N N N
KINLEY
SODA
N N Y N Y Y N N N N
NUMBER OF BOTTLES IN A CASE
1 CARATE (200ML,250ML,300ML) 24
600ML 24
1.2LT 12
1.25LT 12
2LT 9
400ML 24
SWOT ANALYSIS
SWOT analysis is a basic, straightforward model that provides direction and serves as
a basis for the development of marketing plans. It accomplishes this by assessing an
organizations Strength (what an organization can do) and Weakness (what an
organization cannot do) in addition to Opportunities (potential favorable conditions for
an organization) and Threats (potential unfavorable condition for an organization).
SWOT analysis is an important step in planning and its value is often underestimated
despite the simplicity in creation. The role of SWOT analysis is to take the information
from the surrounding and separate it from internal issues (strength and weaknesses)
and external issues (opportunities and threats). Swot analysis assists the firm in
accomplishing its objectives (strength or opportunity) and overcoming the obstacles
(weakness or threats).
STRENGTH
1. Better network – covers whole of the city.
2. Brand recognition – brand image among customers
3. Brand equity – high equity in the market.
4. Advertisement policy – Coca Cola Company has endorsed with famous
Personalities like Aamir Khan, Hrithik Roshan, Akshya Kumar, Priyanka
Chopra,Kareena Kapoor and many more.
5. Bottling plants –27 wholly-owned bottling operations Supplemented by 17
franchisee-owned bottling operations and a Network of 29 contract-packers to
manufacture a range of products for the company.
6. Promotional schemes – to activate sales company is providing Umbrellas, Chairs,
Tables, racks, flanges, visicooler & glasses.
WEAKNESSES
1. Weak and irregular supply.
2. Irregular visit of EXECUTIVES.
3. Low product availability.
4. Scarcity of manpower.
OPPORTUNITY
1. Greater opportunity in rural areas where coca cola can gain a Substantial base.
2. 70% of total population lies in rural area, and market penetration of soft
Drink is only 12% hence there is greater scope of increasing revenue of the
Coca cola Company.
3. Opening new outlets in the area where the coca cola’s market share is less.
4. Company should offer schemes for long term profit to the retailer so that they
get involved in long term association.
5. Covering greater institutional areas as younger generation gets much
Fascination out of such beverages.
THREATS
1. Impulse customer’s buy whatever is in the offer, so company should
Give offers regularly.
2. Health conscious people are boycotting soft drinks.
3. Threat from Competitors as they give offers at cheaper rates than coca cola.
4. It’s too seasonal
5. People are becoming health conscious
Chapter 1
RATIONALE 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. It’s my
gratitude to work with Coca Cola Company especially in marketing department. I have
been placed their in sales and distribution department for my internship. The research
work was not as 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. 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
presale concept.
RESEARCH OBJECTIVES
PRIMARY OBJECTIVE:
TO ANALYZE HOW COKE AND PEPSI LEARN TO COMPETE IN INDIA, WITH
REFERENCE TO HYDERABAD.
SECONDARY OBJECTIVE:
1To analyze the distribution channel system.
6. To check the brand availability.
7. To analyze the effectiveness of the schemes launched by the company.
8. To find the retailer’s satisfaction.
9. To ensure the visibility of the product.
DISTRUBUTION
Distribution of coca cola is done basically in two ways:-
a) Direct operation.
b) Indirect operation.
But the distribution of Coca Cola varies from place to place. In India Coca Cola
is doing his distribution by direct operation, indirect operation & by both also.
Especially in Ranchi coca cola is doing its distribution by both direct operation & indirect
operation.
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(PJP), 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.
DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY
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.
DIRECT OPERATION:
Here company does its distribution by himself. There is no role of middle man. Every
activities of a distribution process is under the control of the company. Here coca cola
runs its own vehicles in that particular area for the distribution. By direct operation
company gains a lot. The direct operation of the coca cola is as follows:-
activities of a distribution process is under the control of the company. Here coca cola
runs its own vehicles in that particular area for the distribution. By direct operation
company gains a lot. The direct operation of the coca cola is as follows:-
INDIRECT OPERATION:
Here in the distribution process middleman’s role came into existence. In coca
cola the distributor is the middle man. Everything is not under the control of the
company. Basically Coca Cola Company selects a person for some specific areas for
the distribution process.
Indirect operation of coca cola in Ranchi is as follows:--
COMPANY
COMPANY
DEPOT
DISTRIBUTOR
The number of distributors in India was 4100 in 2006 which has been reduced to 2740 in 2009.
COMPANY
COMPANY DSD
RETAILERS CONSUMERS
AREAS OF DIRECT OPERATIONS IN RANCHI
AREA ROUTE ID
HARMOO RX 9002
HINOO RX9003
HATIA RX9004
UPPER BAZZAR RX9005
KANKE RX9006
MURI RX9007
ASHOK NAGAR RX9008
DORANDA RX9009
DHURWA RX9010
HIGHWAY RX9011
MAINROAD1 RX9012
MAINROAD2 RX9013
STATION ROAD RX9014
AZAD BASTI RX9015
PURLIYA ROAD RX9016
KATATOLI RX9017
KOKAR RX9018
CIRCULAR ROAD RX9019
HINDPIDI RX9020
CHUTIA RX9021
KHADGADA RX9022
BARIATU RX9025
KACHERI RX9026
NAMKUM RX9027
RETAILER
CONSUMER
RESEARCH METHODOLOGY
The topic “COKE AND PEPSI LEARN TO COMPETE IN INDIA” for the project
work was suggested to me by the RTM of Hindustan Coca-Cola Beverage private
limited. He asked me to conduct a survey in areas where the coca-cola market is weak
as well as high and to make a study of its major competitor “PEPSI”..
Armed with the ideas provided to me by the RTM and the Area Sales Manager, I went
ahead for the research. In order to collect samples during my survey I planned to take
recourse to the Random Sampling because as the name suggests, in this method of
sampling any unit of population can be selected at random. In my research, the retailers
in Ranchi comprise the universe. Therefore, they are the ones who constitute as the
main source of information to me.
SAMPLE SIZE FOR SURVEY
The survey was done in about 200 shops including eateries
& drinkeries, groceries and other conveniences.
SCOPE OF THE STUDY
1. By this study company can know its growth.
2. This study helps the company to know their actual position in the market.
3. This study also helps to get a clear idea about where the co. is lagging behind &
where it is ahead of its competitors.
METHOD OF DATA COLLECTION
There are different methods of data collection. They are:-observation, experimentation,
uncontrolled experimentation, controlled experimentation, survey and focus group.
Here the data are collected by market survey.
METHODOLOGY
The data can be dichotomized into two types: primary data, secondary. In this study the
data collected was mainly primary data. The respondents were from the area of Ranchi.
The secondary data were obtained from the Coca-Cola city office. The sample size
collected for the various objectives where, from the total number of outlet the sample
size determined was: 200
INSTRUMENT FOR DATA COLLLECTION:
The primary data collected through the survey method for the purpose of the study.
The survey was done by using questionnaire method. Beside this I had an informal
discussion with the retail outlet. Secondary data: information regarding the
organization was obtained from secondary sources like company journals, company
websites, publications & records.
RESEARCH DESIGN
The design appropriate for this research is Exploratory Research Design. Exploratory research studies
are also termed as formulative research studies. The main purpose of such studies is that of
formulating a problem for more precise investigation or of developing the working hypothesis from
an operational point of view. The major emphasis in such studies is on the discovery of ideas and
insights. As such the research design appropriate for such studies must be flexible enough to provide
opportunity for considering different aspects of a problem under study in built flexibility in research
design is needed because the research problem, broadly defined initially as transformed in to one with
more precise meaning in explanatory studies, which fact may necessitate changes in the research
procedure for gathering relevant data.
The survey was conducted in HYDERABAD, by asking from dealers.
Secondary data are those which have already been collected by someone else
and which have already been passed through the statistical process.
Company is product information brochure.
Various articles related to consumer electronics published in the newspapers &
magazines.
Company’s profile brochure.
DATA ANALYSIS AND INTERPRETATION
SURVEY OF OUTLETS IN Hyderabad
There are some specific areas covered for the purpose of survey in the state capital of
Jharkhand, Ranchi. Generally these areas are weaker in terms of sales. To find out the
reason of retailer’s unsatisfaction, loop hole in the distribution system and the
improvement to be needed for high satisfaction as it will increase the sales volume, the
survey was done.
AREA COVERED:
HINOO
HARMOO
MAIN ROAD1
MAINROAD2
HINDPIDI
RATU ROAD1
RATUROAD2
HIGHWAY1
HIGHWAY2
BARIYATU
MORABADI
PURLIYA ROAD
KHADGADA
CIRCULAR ROAD
KACHERI
KOKAR
UPPER BAZZAR
ASHOK NAGAR
KANKE
NAMKUMM
AZAD BASTI
MARKET OBSERVATIONS:
DEALER’S RESPONSE
A. Management Problems
1. Company does not support dealers
No regular visit from the sales people.
2. Dealers are annoyed with the sales representative.
No stock delivery after being ordered.
3. Services are very poor.
No new price list
Billing problem
4. Replacement problem (Time Consuming and Negligence).
Replacement of BBD stocks pending since 6 months or more.
B. Market Picture
No direct letter is given to the retailer regarding the schemes introduced by the
company.
Not proper supply of each flavor (SKU).
Poor delivery of stocks against order.
FINDINGS AND ANALYSIS
1. Type of outlet visited.
General Store Pan Store Sweet shop Canteen0
10
20
30
40
50
60
70
80
90
Outlet Visited
Outlet Visited
2. Which brand of soft drinks you deal in?
Coca Cola Pepsi Both Others0
10
20
30
40
50
60
70
80
90
100
Series 1
Series 1
3. Which company’s signage you have in your outlet?
Coca cola Pepsi Both No signage0
10
20
30
40
50
60
70
80
Series 1
Series 1
4 Which company’s visi- cooler you have in your outlet ?
coca cola pepsi Both Mixed0
20
40
60
80
100
120
Series 1
Series 1
5. Which company have better distribution network?
coco cola pepsi both0
20
40
60
80
100
120
Series 1
Series 1
6. Which is most preferred size of the bottle by customer?
200ml 300ml 500ml 1000ml 1500ml 2000ml0
10
20
30
40
50
60
Series 1
Series 1
7. Do the customer know the difference between branded
and unbranded soft drinks?
Yes No0
20
40
60
80
100
120
140
160
Series 1
Series 1
8. What type of cold drinks you are selling?
Branded Unbranded Both0
10
20
30
40
50
60
70
80
90
Series 1
Series 1
9. Major age group of customers who buy soft drinks?
Category 1 0-15 15- 25 25-35 35-45 45-550
10
20
30
40
50
60
Series 1
Series 1
10. What do you feel about the price of branded soft drinks ?
yes no no reply
0
20
40
60
80
100
120
Series 1
Series 1
11 Do you feel a price reduction will increase the sales of
branded soft drinks ?
yes no0
20
40
60
80
100
120
140
160
180
200
Series 1
Series 1
12. Do you think that aggressive advertising further increase
the sales volume of Pepsi?
New schemes Refrigeration system0
20
40
60
80
100
120
Series 1
Series 1
13. What are your suggestion to improve the sale ?
New Sc
heme
refreg
eration sy
stem
adve
rtisem
ent
credit f
ecility
regular
supply
0
10
20
30
40
50
60
70
80
Series 1
Series 1
CONCLUSIONS:
1. The Beverages market can be segmented mainly on price and quality basis as all
the players in the market have matched same quantity standards.
2. The customers basically have very thin idea about the product and hence the role
of dealer becomes significant.
3. Most of the customers are driven either by past brand image or recent ad-
commercials.
4. The brand awareness is most important determinants, pricing takes a back seat.
5. Retailers are keen to sold Coca Cola ,because of the bran and quality maintained
by it.
6. The whole research shows that there are only two companies dominating in the
soft drinks market- coca-cola and Pepsi. There is neck – to- neck competition
in between these companies.
SUGGESTIONS & RECOMMENDATIONS
1. Coca Cola needs to view its intermediaries in the same way that it views its end
uses. The company should determine channel numbers needs and should provide
Capability building program’s to improve intermediaries performance.
2. Company can keep the retailers happy by paying regular visits to them and also
ask them to continuously monitor the consumers and their problem.
3. Company use motivators like high margin, special deals, advertising allowance
etc.
4. The company should clearly communicate what it wants from its retailers in the
way of market coverage, market development and marketing information.
5. Coca Cola has competitions with Pepsi. Therefore it advisable that prompt and
proper service be maintained. Also the product quality should be checked before
delivery.
6. Coca Cola must periodically evaluate its channel performance against standards
such as sales , average inventory levels, customer delivery time, treatment of
damaged goods and cooperation in promotional training program. It is important
that under performers need to be re-motivated or terminated.
7. Brand image has been the first and foremost important thing in Fast Moving
Consumer Goods (FMCG) segments. Coca Cola has made good brand
reputation among the customers. It gets hamper due to weak supply that is
provided to retailers and consumers. . This will increase the satisfaction level of
the customers.
8. Retailers and Consumers have sense of belongingness towards the Hindustan
Coca Cola Beverages Pvt. Ltd.(HCCBPL).
It can be achieve by various ways:
The quality of interaction between the company official & retailers should be
improved.
Schemes should be made such that customers and retailers both get benefited
through the schemes.
Monthly meetings may be arranging to access the performance of poor markets .
This will give them a sense of responsibility.
LIMITATIONS
The major limitations of the project work under study is time , since it is to be
completed within a period of two months and this time period may not be
sufficient to undertake a comprehensive study.
This study is exclusively from HCCBPL, Ranchi and the results cannot be
extrapolated to other organization.
Being a project student, it created some hurdles in getting the true feedback from
the respondents.
Being a student financial constraints was also there.
The area was too big to cover as the market share is about 82%.
QUESTIONNAIRE
Q1. Type of outlet
(a) General store (b) Pan shop
(C) Sweet shop (d) Canteen
Q2. Which brand of soft drinks you deal in ?
(a) Coca cola (b) Pepsi
(c) Both (d) Others
Q3. Which company’s signage you have in your outlet?
(a) Coca cola (b) Pepsi
(c)Both (d) No signage
Q4. Which company’s visi- cooler you have in your outlet ?
(a) Coca cola (b) Pepsi
(a) Both (d) Mixed
Q5. Which company have better distribution network ?
(a) Coca cola (b) Pepsi (C) Both
Q6. Which is most preferred size of the bottle by
customer?
200ml 300ml 500ml 1000ml 1500ml 2000ml
Q7. Do the customer know the difference between branded and unbranded soft drinks?
Yes No
Q8. What type of cold drinks you are selling ?
(a) Branded (b) unbranded (c) Both
Q9. Major age group of customers who buy soft drinks ?
(a) 5-15 (b) 15-25 (c) 35-45 (d) 45-55
Q10. What do you feel about the price of branded soft drinks ?
(a) Very high (b) High (c) Medium (d) Low (e) Reasonable
Q11. Do you feel a price reduction will increase the sales
of branded soft drinks ?
(a) Yes (b) No
Q12. Which medium affect the sales most?
(a)Television (b) Magazines/News papers
(c) Display (d) Wall paintings/Hoardings
Q13. Do you think that aggressive advertising further
increase the sales volume of Pepsi?
(a) Yes (b) No (c) No reply
Q14. What kind of promotional activities affect sale mostly ?
(a)Free bottle scheme (b) Prize
(c) Discount carats (d) Other
Q15. What are your suggestion to improve the sale ?
(a) New schemes
(b) Refrigeration system
(c) Advertisement
(d) Reduction in deposits
(e) Credit facilities
(f) Regular supply
BIBLIOGRAPHY
(1) Website of Hindustan Coca Cola Beverages Pvt. Ltd.
http:\ www.coca-colaindia.com
(2) Information brochure of Coca Cola.
(3) Research Methodology by C.R. Kothari.
(4) Marketing Management, Kotler & Keller.
(5) Consumer Behavior, Keith Davis.