1. [1]
SUMMER TRAINING PROJECTREPORT
ON
“A Study on Market Penetration
By Coca-Cola In Lucknow
Market”
(With Ref. to Minute-Maid)
Towards partialfulfilment of
Master of BusinessAdministration (MBA)
(Affiliated to Dr. A. P.J. AbdulKalam TechnicalUniversity,
Lucknow)
Industry Guide: Faculty Guide:
Mr. Shishir Srivatva
(Sales Manager) Ms. Arushi Bashin
(Asst. Professor)
BBD NITM, Lucknow
Submitted by:
Vikash Mishra
Roll no: 1605470104
M.B.A. 3rd
Semester
SESSION2017-2018
DEPARTMENTOFMANAGEMENT
Babu Banarasi Das
2. [2]
National Institute of Technology & Management
Sector 1, Akhilesh Das Nagar, Faizabad Road, Lucknow (U. P.), India
3. [3]
DECLARATION
I hereby declare that the project report entitled “Juice Penetration in Lucknow Market” is the
produce of my sincere efforts. This Summer Internship Project Report is being submitted by me
at “BABU BANARASI DAS NATIONAL INSTITUTE OF TECHNOLOGY&
MANAGEMENT, Lucknow” for the Partial fulfillment of the course M.B.A and the report has
not been submitted to any other educational institution for any other course.
Date: Vikash Mishra
Place : Lucknow MBA 3rdSem
4. [4]
ACKNOWLEDGEMENT
The present work is an effort to throw some light on “Juice Penetration in Lucknow
Market”. The work would not have been possible to come to the present shape without the
able guidance, supervision and help by number of people including my Company Guide Mr.
Raghvendra Pratap Singh.
With deep sense of gratitude I acknowledge the encouragement and guidance received to me
by my Faculty Guide Ms. Arushi Bashin and other staff members.
I convey my heart full affection to all those people who helped and supported me during the
course, for completion of my Project Report.
(Vikash Mishra)
5. [5]
PREFACE
The Training project program is the integral part of MBA curriculum during the course of
management. The research is expected to use and apply their academic knowledge and gain
a valuable insight into corporate culture with all its environment operational complexities.
The summer training offers a valuable opportunity to the researcher to meet their academic
knowledge to the real world situation. I have undertaken Marketing department to study
about the various activities done in this department in the details, as the result of that I
came out with the project title “Juice Penetration in Lucknow Market”.
In this report I have put my finest efforts to compile the data with utmost accuracy and
hope this report will give complete satisfaction regarding the various aspects of HR.
(Vikash Mishra)
6. [6]
TABLE OF CONTENTS:
Chapter No. Content Page no.
CHAPTER-1 INTRODUCTION
1.1 Market Penetration
1.2 Need for the Study
1.3 Objectives of the Study
1.4 Scope of the study
1.5 Limitation of the Study
1.6 Research Methodology
CHAPTER-2 INDUSTRY AND ORGANISATION PROFILE
2.1 Beverage Industry profile
2.2 History of soft drinks
2.3 Government Policies
2.4 Organizational profile
Mission
Vision
Coca-Cola system
Products
Objectives
History of Coca-Cola
SWOT Analysis
Company Background
Future Focus
Achievements
CHAPTER -3 THEORITICAL FRAME WORK
3.1 ANSOFF growth Matrix
3.2 Consumer Tastes and Preferences
3.3 Consumption patterns and potential of market
3.4 Pricing Strategies
3.5 STP Approach
3.6 Promotion
CHAPTER-4 ANALYSIS
Analysis and interpretation
8. [8]
LIST OF TABLES:
Table No. Title Page No.
4.1 Type of the outlet
4.2 Location of the Outlet
4.3 Company having the highest sale of its products
4.4 Product preferred by customers
4.5 Demand for Coke products
4.6 Frequency of order placing
4.7 Effect of Pricing
4.8 Preference by different age groups
4.9 Quantity of coke products having highest sales
4.10 Highest sold quantity in summer
4.11 Weekly average sale of glass bottles
4.12 Weekly average sale of PET bottles
4.13 Rating given to behaviour of salesmen during order taking
and delivery
4.14 Favourable rating in terms of service
4.15 Problems faced with Coca-Cola
4.16 Type of problem mostly faced
4.17 Reasons for customer preference for Coke
4.18 Sales promotion
4.19 Kind of promotional activity followed
4.20 Suggested strategy to increase sales
9. [9]
LIST OF FIGURES:
Figure No. Title Page No.
2.0 Beverage industry in India
3.1 ANSOFF Growth Matrix
4.1 Type of the outlet
4.2 Location of the Outlet
4.3 Company having the highest sale of its products
4.4 Product preferred by customers
4.5 Demand for Coke products
4.6 Frequency of order placing
4.7 Effect of Pricing
4.8 Preference by different age groups
4.9 Quantity of coke products having highest sales
4.10 Highest sold quantity in summer
4.11 Weekly average sale of glass bottles
4.12 Weekly average sale of PET bottles
4.13 Rating given to behaviour of salesmen during order taking
and delivery
4.14 Favourable rating in terms of service
4.15 Problems faced with Coca-Cola
4.16 Type of problem mostly faced
4.17 Reasons for customer preference for Coke
4.18 Sales promotion
4.19 Kind of promotional activity followed
4.20 Suggested strategy to increase sales
11. [11]
1.1 INTRODUCTION
The Coca-Cola Company is the world’s largest beverage company. Along with
Coca-Cola, recognized as the world’s most-valuable brand, the Company
markets four of the world’s top five soft drink brands, including Thumps
Up,Diet Coke, Fanta and Sprite and a wide range of other beverages, including
water, juices and juice drinks, tea, coffee and sports drinks. Through one of the
world’s largest beverage distribution system, consumers in more than 200
countries enjoy The Coca-Cola Company’s beverages at a rate exceeding 1.6
billion servings each day.
The title of my project is “Market Penetration of the brand Coca-Cola” which
measures the market penetration of the Coca Cola products.
Marketing and sales differ greatly, but have the same goal. Selling is the final
stage in Marketing, which also includes Pricing, Promotion, Positioning and
Product (the 4Ps). Achieving this goal may involve the sales team using
promotional techniques such as advertising, sales promotion, publicity,
and public relations, creating new sales channels, or creating new products (new
product development), among other things. Marketing is the process of
communicating the value of a product or service to customers, for the purpose
of selling the product or service. It is a critical business function for attracting
customers.
12. [12]
Market penetration is the percentage of a target market that consumes a
product or service. Market penetration can also be a measure of one
company's sales as a percentage of all sales for a product.
A measure of the amount of sales or adoption of a product or service compared
to the total theoretical market for that product or service. The amount of sales or
adoption can be an individual company's sale or industry while the theoretical
market can be the total population or an estimate of total potential consumers
for the product.
For example, if there are 300 million people in a country and 65 million of those
people have cell phones then the market penetration of cell phones would be
approximately 22%. This would mean in theory there are still 235 million more
potential customers for cell phones, which may be a good sign of growth for
cell phone makers. In general, the older the offering or industry, the greater the
market penetration.
Often, managers must decide whether to seek sales growth by acquiring existing
category users from their competitors or by expanding the total population of
category users, attracting new customers to the market. Penetration metrics help
indicate which of these strategies would be most appropriate and help managers
to monitor their success. These equations might also be calculated for usage
instead of purchase.
Market penetration is a growth strategy used to maintain or increase the market
share of current products and to achieve secure dominance of growth markets.
13. [13]
Determining what constitutes the consumer market is key to the process of
properly calculating market penetration. In some instances, the market is
defined as being consumers who actually use a given type of product or service.
Other situations call for including not only current consumers, but potential
consumers as well. The former is more helpful when assessing the degree
of market penetration of a given product among active users today, while the
latter is usually helpful when seeking to identify new markets for those same
products, based on various demographics.
If the idea is to approach existing consumers within the market and entice them
to purchase a new and improved version of something they already use,
calculating market penetration may focus on identifying how many sales the
product currently generates.
Market penetration also includes the study of Pricing strategies followed by the
company, promotional activities followed and about the various aspects of the
product. These are studied because the amounts of sales of the product are
greatly affected by the different promotions and the pricing of the product
which in turn decide the market share of the product.
Sales promotion includes several communications activities that attempt to
provide added value or incentives to consumers, wholesalers, retailers, or other
organizational customers to stimulate immediate sales. These efforts can
attempt to stimulate product interest, trial, or purchase. Examples of devices
14. [14]
used in sales promotion include coupons, samples, premiums, point-of-purchase
(POP) displays, contests, rebates, and sweepstakes.
Pricing strategies for products or services encompass three main ways to
improve profits. These are that the business owner can cut costs or sell more, or
find more profit with a better pricing strategy. When costs are already at their
lowest and sales are hard to find, adopting a better pricing strategy is a key
option to stay viable.
Penetration pricing is the pricing technique of setting a relatively low initial
entry price, usually lower than the intended established price, to attract new
customers. The strategy aims to encourage customers to switch to the new
product because of the lower price.
Penetration pricing is most commonly associated with a marketing objective of
increasing market share or sales volume. Coca cola company follows market
penetration pricing strategy in order to increase their sales and their market
share. The Coca-Cola Company has been very consistent with their pricing
strategy over the many years they have been in business. Because they have a
strong competitor, they have to keep their prices in line to compete. The
ultimate goal of the company is to maximize shareholder value. The will often
reduce the price of their products when entering new markets. They do this to
raise brand awareness and face the competition. Once they are established, they
move the prices back up to position themselves as a premium product.
15. [15]
Products
COCA-COLA- BEST KNOWN DRINK IN THE WORLD
In India, Coca-Cola was the leading soft-drink till 1977 when the government
policies necessitated its departure. Coca-Cola made its return to the country in
1993 and made significant investments to ensure that the beverage is available
to more and more people, even in the remote and inaccessible parts of the
nation.
Variety - Cans: 300 ml, 330 ml, RGB: 200 ml, 300 ml, 330 ml, PET: 350 ml,
400 ml, 500ml, 600 ml, 1250 ml, 1500 ml 2000 ml, 2250 ml, Fountain Glass:
16. [16]
Various size
TAGLINE:-OPEN HAPPINES
DIET COKE- WORLD'S THIRD LARGEST SELLING SOFT DRINK
Launched in 1982 in America, Diet Coke (also known as Coca-Colalight in
some countries) has become the world's third largest soft drink.
Variety -PET: 350 ml, 500 ml, 600ml, Can: 300 ml, 330 ml.
17. [17]
COCA-COLA ZERO- Coca-ColaZero is one of The Coca-Cola
Company's most successfuland significant innovations. It offers the
same „GreatCoke Taste, with Zero Sugar‟. Launched in 2005 in America,
Coca-Cola Zero is now available in 149 countries including India. Coca-Cola
Zero is one of the 20 billion dollar brands of The Coca-ColaCompany in
revenue terms and is one of the fastest to this milestone.
Variety -Cans: 300 ml, 330 ml, PET: 400 ml, 600 ml.
18. [18]
THUMS UP- TODAY IT IS THE LARGEST SELLING SOFT DRINK BRAND
IN INDIA. Originally introduced in 1977, THUMS UP was acquired by The
Coca-Cola Company in 1993.
Variety - Cans: 300 ml, 330 ml, RGB: 200 ml, 300 ml, 330 ml, PET: 350 ml,
400 ml, 500ml, 600 ml, 1250 ml, 15
00 ml 2000 ml,
19. [19]
2250 ml, Fountain Glass: Various Sizes
TAGLINE:-TASTE THE THUNDER
AAJ KUCH TOOFANI KARTE HAI
SPRITE - SPRITE A 'CLEAN LIME' DRINK
Since its inception is 1999, Sprite has not only established itself as a brand
which successfully boasts it's 'cut-thru' perspective with an authentic, edgy,
irreverent, urban and straight forward style, but has also achieved status of an
undisputed youth 'badge' brand. TodaySprite is one of the top two sparkling
soft drinks in the country.
Variety - Cans: 300 ml, 330 ml, RGB: 200 ml, 300 ml, 330 ml, PET: 350 ml,
400 ml, 500ml, 600 ml, 1250 ml, 1500 ml 2000 ml, 2250 ml, Fountain Glass:
Various
21. [21]
FANTA - FANTA THE 'ORANGE' DRINK
Fanta entered the Indian market in the year 1993. Perceived as a fun youth
brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles that
not just uplifts feelings but also helps free spirit thus encouraging one to indulge
in the moment.
Variety -Cans: 300 ml, 330 ml, RGB: 200 ml, 300 ml, 330 ml, PET: 350 ml,
400 ml, 500ml, 600 ml, 1250 ml, 1500 ml 2000 ml, 2250 ml, Fountain Glass:
Various Sizes.
25. [25]
LIMCA - LIMCA'S FRESHNESS IS LIKE NO OTHER- 'LIME N LEMONI'
Born in 1971, Limca has remained unchallenged as the No.1 Sparkling Drink in
the Cloudy lemon Segment. The success formula is the sharp fizz and lemoni
bite combined with the single minded proposition of the brand as the provider
of "Freshess".
Variety -Cans: 300 ml, 330 ml, RGB: 200 ml, 300 ml, 330 ml, PET: 350 ml,
400 ml, 500ml, 600 ml, 1250 ml, 1500 ml 2000 ml, 2250 ml, Fountain Glass:
Various Sizes
.
27. [27]
MAAZA- MAAZA THE WHOLESOME FAMILY FUN
Introduced in 1970s, MAAZA has today come to symbolize the very spirit of
mangoes. Universally loved for its taste, color, thickness and wholesome
properties, MAAZA is the mango lover's first choice.
Variety -Cans: 300 ml, 330 ml, RGB: 200 ml, 300 ml, 330 ml, PET: 350 ml,
400 ml, 500ml, 600 ml, 1250 ml, 1500 ml 2000 ml, 2250 ml, Fountain Glass:
Various Size.
29. [29]
MAAZA MILKY DELITE- MAAZA MILKY DELITE is the latest
innovation by Coca-Cola India developed specifically for the Indian palette at
the company’s R&D center in Gurgaon. It adds to Coca-Cola India’s existing
product portfolio which has a suite of “Made in India, Made for
India” offerings. MAAZA Milky DELITE is made of juicy mangoes combined
with delicious richness of milk solids. The product seeks to expand MAAZA’S
range of mango offerings and provide more choice to the mango lover with new
and unique ways of enjoying their Favourite fruit.
Variety – TETRAPACK, 200ml.
MINUTE MAID PULPY ORANGE-Minute Maid – one of the
world's largest juice and juice drink brands. The history of the Minute Maid
brand goes as far back as 1945 when the Florida Food Cooperationdeveloped
orange juice powder. They branded it Minute Maid, a name connoting the
convenience and the ease of preparation (in a minute).
Variety – PET, 400ml and 1ltr, Tetrapack, 200ml.
31. [31]
MINUTE MAID NIBUFRESH-Launched first in South of India in
January 2010, Minute Maid Nimbu Fresh, started refreshing the whole of India
by April 2010.
Variety – PET, 400ml and 1ltr, Tetrapak : 200ml, RGB : 200ml, Tetrawedge :
125ml.
MINUTE MAID GUAVA-The launch happened in April 2013 in
Delhi, Punjab, UP.& Kolkata.
Variety – Tetrapak- 200ml and 1 Ltr.
32. [32]
MINUTE MAID MANGO- Launched in 2012 across India
Variety – PET- 400ml and 1ltr, TETRA- 200ml, TETRAWEDGE- 125ml.
33. [33]
MINUTE MAID MIXEDFRUIT-Launched in the East in 2010 and
scaled up in 2011 across the country.
Variety –PET-400ml and 1ltr, Tetrapak- 200ml and 1ltr.
34. [34]
KINLEY SODA- Launched in 2002 Kinley sodatoday is no.1 national
Sodabrand.
Variety – RGB: 200 ml, 300 ml, PET- 350 ml, 500ml, 600ml, 1.25 L, 1.5L, 2 L.
KINLEY WATER- Kinley water comes with the assurance of safety
from The Coca-ColaCompany. That is why we introduced Kinley with reverse
–osmosis along with the latest technology to ensure purity of our product.
Because we believe that right to pure, safe drinking water is fundamental.
37. Pack Brands available MRP per bottle
No. of
bottle in
a case
Costper case
200 ml KO, F, SP, L, TH , M
KO, F, SP, L, TH - RS.
12, M - RS. 12
24
KO - RS. 260, F
L, TH - RS. 260,
M - RS. 257.14
, SP,
250ml M RS. 15 24 RS. 300
300 ml
KO, SP, TH , Kinley
Soda
KO, SP, TH - RS. 15,
Kinley Soda - RS. 8
24
KO, SP, TH -RS.300,
Kinley Soda - RS. 171.43
400 ml KO, F, SP, L, TH , M RS. 20 24 RS. 435
600 ml
KO, F, SP, L, TH , M,
Kinley Soda
KO, F, SP, L, TH- RS. 36,
M - RS. 35,
Kinley Soda - RS. 15
24
KO, F, SP, L, TH - RS. 80
- RS. 763.64, Kin
Soda - RS. 280.16
0, M
ley
750 ml KO, F, SP, L, TH, RS. 38 24 RS. 844.44
1 l Kinley water RS. 20 15 RS. 180
1.25 l KO, F, SP, L , TH, M
KO, F, SP, L, TH - RS. 55,
M - RS. 62
12
KO, F, SP, L, TH - RS. 61
M - RS. 676.36
1.11,
2 l KO, SP, L, TH RS. 80 9 RS. 667
2.25 l KO, F, SP, L , TH RS. 82 9 RS. 683.33
[36]
38. [37]
1.2 NEED OF THE STUDY
This study is done because the annual revenue of Coke is less than that of
Pepsi even though it has a greater market share and to know the reasons
behind it.
This study is carried out to find out the various strategies, when adopted,
can help the company to gain market dominance.
This study is done to identify different strategies and extent of market
penetration of Coca cola products in order to gain market dominance
from its competitors like Pepsi.
This study provides an insight to the company that what kind of strategy
can be considered in order to increase the sales and satisfaction of the
consumer.
39. [38]
1.3 OBJECTIVES OF THE STUDY
To find out the present sales of various cocacola products in different
retail outlets.
To find out the factors that influence the consumer’s consumption of coke
products.
To find out whether any problems are faced by the retailers which are in
turn affecting the sales.
To find out the demand for coke products.
To find the effect of pricing and promotional activities on sales.
40. [39]
1.4 SCOPE OF THE STUDY
This study covers the history and evolution of the beverages industry and
mainly concentrates on the Soft Drink industry profile.
The study then briefly describes the profile of the company “Coca-Cola”
which includes the history and evolution of Coca Cola.
It covers the different pricing strategies, different promotional activities
,STP approach and other theoretically related concepts which helps the
company to have maximum market penetration compared to its
competitors.
The study finally includes the analysis and interpretation of the data
collected on sale of Coke products in various retail outlets and the extent
to which the brand has penetrated in the market and the findings from the
data.
41. [40]
1.5 LIMITATIONS OF THE STUDY
This study is limited only to certain areas and all the retailers are not
covered which in turn does not cover all the potential customers.
The data collected from the retailers may be biased.
Non-cooperative behavior of some retailers.
The study did not include modern trade like hyper markets, multiplexes
and malls in Lucknow region.
(This is productdemand varies seasonally so study in different seasons
yields different results.)
The time period allotted for the study was only of 6 weeks, which may
provide a deceptive picture in comparisonof the study based on long run.
42. [41]
1.6 METHODOLOGY OF THE STUDY
Data was collected from primary sources and secondarysources.
PRIMARY DATA:
Primary data is the data that is generated by the researcher for the
specific purposeof research situation at hand.
The primary data in this study is collected through Questionnaire and
observation.
SECONDARYDATA:
Secondarydata is already published data collected for some purposes
other than confronting the researcher at a given point of time.
The secondarydata is collected from the internet, journals and text books.
RESEARCHINSTRUMENTS:
Structured Questionnaire: A printed questionnaire was given to the
retailers and the responses were collected.
SAMPLE SIZE:
100 retail outlets
SAMPLING TECHNIQUE:
Simple random sampling
SAMPLING FRAME:
Traditional formats of retail outlets like Kirana shops and Pan shops in the areas
selected.
44. [43]
2.1 BEVERAGES INDUSTRY
Definition of Beverage
A drink, or beverage, is a liquid specifically prepared for human
consumption. In addition to basic needs, beverages form part of the culture of
human society.
Types of Beverage
Water
Despite the fact that most beverages, including juice, soft drinks, and
carbonated drinks, have some form of water in them; water itself is often not
classified as a beverage, and the word beverage has been recurrently defined as
not referring to water.
Alcoholic Beverages
An alcoholic beverage is a drink containing ethanol, commonly known as
alcohol, although in chemistry the definition of an alcohol includes many other
compounds. Alcoholic beverages, such as wine, beer, and liquor have been part
of human culture and development for 8,000 years.
Non-alcoholBeverages
Non-alcoholic beverages are drinks that would normally contain alcohol, such
as beer and wine but are made with less than 0.5 percent alcohol by volume.
The category includes drinks that have undergone an alcohol removal process
such as non-alcoholic beers and de-alcohol zed wines.
45. [44]
The non-alcoholic beverage industry plays an important role in the U.S.
economy. Our industry has a direct economic impact of $141.22 billion,
provides more than 233,000 jobs and helps to support hundreds of thousands
more that depend, in part, on beverage sales for their livelihoods.
The American Beverage Association (ABA) is the trade association that
represents America's non-alcoholic beverage industry. Together, they bring to
market hundreds of brands, flavors and packages, including regular and diet soft
drinks, bottled water and water beverages, 100 percent juice and juice drinks,
sports drinks, energy drinks and ready-to-drink teas.
The Alcoholic Beverage
It is unknown when the first alcoholic beverage was created. Evidence of
intentionally fermented beverages exist in the form of beer jugs dated as early as
the Neolithic period.
History of Coca Cola
Inventor John Pemberton's accountant Frank Robinson (who also had excellent
penmanship) first scripted "Coca Cola" into the flowing letters which has
become the famous logo of today. The soft drink was first sold to the public at
the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.
Coffee Beverage
The modern day espresso machine was created by Italian Achilles Gaggia in
1946. Gaggia invented a high pressure espresso machine by using a spring
powered lever system.
46. [45]
Milk Beverage
In 1884, Doctor Hervey Thatcher of Potsdam, New York invented the first glass
milk bottle called Thatcher's Common Sense Milk Jar, which was sealed with a
waxed paper disk.
BEVERAGE INDUSTRYIN INDIA
In India, beverages form an important part of the lives of people. It is an
industry, in which the players constantly innovate, in order to come up with
better products to gain more consumers and satisfy the existing consumers.
The beverage industry in India constitutes of around USD 230 million among
the USD 65 billion food processing industry. The major sectors in beverage
industry in India are tea and coffee which are not only sold heavily in the
domestic market but are also exported to a range of leading overseas markets.
Half of the tea and coffee products are available in unpacked or loose form.
Among the hot beverages manufactured in India, tea is the most dominant
beverage that is ruling both the domestic and international market even today.
The supply of tea and coffee is insurmountable in the Indian beverage industry.
BEVERAGE COMPANIES IN INDIA
Fruit juices, pulp and concentrates, and sauces or ketchups are doing very well
in the beverage market in India for the past few years. Various milk products,
health beverages, beer, and country liquors have also been contributing largely
in the rising demand of beverages in India. The leading beverage companies in
India are also exporting various products especially tea and coffee to the
47. [46]
international markets every year. Among all the leading beverage companies in
India, Coca cola has accounted for a thriving growth since its inception. It
occupies around 60 percent of the carbonated drink sector in the Indian
beverage industry. Another predominant brand in beverages is Nestle India
Limited which occupies 61.85 percent of the total Nestle S.A. Switzerland. The
Nestle products are hugely exported to Russia apart from selling in the domestic
market.
Coca cola, Pepsi, and Nestle are the leading beverage brands that have been
ruling the Indian beverage market since past few decades. Among all the
beverages, tea and coffee are manufactured as well as exported heavily in the
international markets succumbing to the individual demands around the world.
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-Carbonated
Cola Non-Cola Non-Cola
FIGURE 2: BEVERAGE INDUSTRY IN INDIA
48. [47]
2.2 HISTORY OF SOFT DRINKS
Soft drinks can trace their history back to the mineral water found in natural
springs. Bathing in natural springs has long been considered a healthy thing to
do; and mineral water was said to have curative powers. Scientists soon
discovered that gas carbonium or carbon dioxide was behind the bubbles in
natural mineral water.
The first marketed soft drinks (non-carbonated) appeared in the 17th century.
They were made from water and lemon juice sweetened with honey. In 1676,
the Companied Lemonades of Paris were granted a monopoly for the sale of
lemonade soft drinks. Vendors would carry tanks of lemonade on their backs
and dispensed cups of the soft drink to thirsty Parisians.
JosephPriestley
In 1767, the first drinkable man-made glass of carbonated water was created by
Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist
Torbern Bergman invented a generating apparatus that made carbonated water
from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation
mineral water to be produced in large amounts.
John Mathews
In 1810, the first United States patent was issued for the "means of mass
manufacture of imitation mineral waters" to Simons and Rundell of Charleston,
South Carolina. However, carbonated beverages did not achieve great
49. [48]
popularity in America until 1832, when John Mathews invented his apparatus
for the making carbonated water. John Mathews then mass-manufactured his
apparatus for sale to soda fountain owners.
PACKING INNOVATIONS:
By the mid-1800s, soft drinks sold in Canada were packaged in 8-ounce (227.2
ml) round-bottom bottles for about 25 cents a dozen, except ginger beer, which
was sold in draught form from wooden kegs. Wired cork closures were used
until about 1884 with Codd's Patented Globe Stoppers (25 types in all). The
crown cap was introduced around 1905 and improved versions are still widely
used, although they are gradually being replaced, especially on larger
containers, with re-closable screw caps.
Other packaging innovations since the mid-1960s include canned carbonated
beverages, nonreturnable glass bottles and containers made from rigid plastics.
Automatic Production of Glass Bottles
In 1899, the first patent was issued for a glass-blowing machine for the
automatic production of glass bottles. Earlier glass bottles had all been hand-
blown. Four years later, the new bottle-blowing machine was in operation. It
was first operated by the inventor, Michael Owens, an employee of Libby Glass
Company. Within a few years, glass bottle production increased from 1,500
bottles a day to 57,000 bottles a day.
Home-Packs and Vending Machines
50. [49]
During the 1920s, the first "Home-Packs" were invented. "Home-Packs" are the
familiar six-pack beverage carrying cartons made from cardboard. Automatic
vending machines also began to appear in the 1920s. The soft drink had become
an American mainstay. (Inventors: 2003).
A Timeline of soft drink invention:
1798 The term "sodawater" first coined.
1819 The "sodafountain" patented by Samuel Fahnestock.
1835 The first bottled sodawater in the U.S.
1861 The term "pop" first coined.
1874 The first ice-cream sodasold.
1881 The first cola-flavored beverage introduced.
1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.
1898 "Pepsi-Cola" is invented by Caleb Bradham.
1923 Six-pack soft drink cartons called "Hom-Paks" created.
1957 The first aluminum cans used.
1959 The first diet cola sold.
1970 Plastic bottles are used for soft drinks.
1973 The PET (Polyethylene Terephthalate) bottle created.
51. [50]
2.3 GOVERNMENTPOLICIES:
The value-added tax (VAT) rate of six per cent is applicable to fruit juice and
fruit juice-based drinks. Despite the states coming to an understanding that VAT
would be charged at the rate of six per cent on fruit juice and fruit juice-based
drinks, some states have increased the VAT substantially.The soft drink
industry is already reeling under margin pressure due to the high rate of taxes it
is paying to the Central and state governments, but some states have also
increased the VAT on carbonated soft drinks.
This increase in taxes will, therefore, have to be passed on to the consumer
leading to an increase in the price of the soft drinks, which will restrict purchase
of soft drinks by the general mass.
52. [51]
2.4 ORGANIZATIONAL PROFILE
Coca-Cola FEMSA is the largest publicly listed bottler of Coca-Cola trademark
beverages in the world, calculated by sales volume in 2010. The Coca-Cola
Company (NYSE: KO) is an American multinational beverage corporation and
manufacturer, retailer and marketer of nonalcoholic beverage concentrates
and syrups, which is headquartered in Atlanta, Georgia.
The Coca-Cola Company operates in more than 200 countries and markets more
than 500 brands and 3,500 beverage products. These products include sparkling
and still beverages, such as waters, juices and juice drinks, teas, coffees, sports
drinks and energy drinks.
2.4.1 MISSION
Our Road map starts with our mission, which is enduring. It declares our
purpose as a Company and serves as the standard against which we weigh our
actions and decisions.
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference.
2.4.2VISION
Our vision serves as the framework for our Road map and guides every aspect
of our business by describing what we need to accomplish in order to continue
achieving sustainable, quality growth.
53. [52]
People: Be a great place to work where people are inspired to be the best
they can be
Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people’s desires and needs
Partners: Nurture a winning network of customers and suppliers, together
we create mutual, enduring value
Planet: Be a responsible citizen that makes a difference by helping build and
supportsustainable communities
Profit: Maximize long-term return to share owners while being mindful of
our overall responsibilities
Productivity: Be a highly effective, lean and fast-moving organization
2.4.3 Coca-Cola system
The Coca-Cola system comprises of a wholly owned subsidiary of The Coca-
Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells
concentrate and beverage bases and powdered beverage mixes, a Company-
owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd;
thirteen authorized bottling partners of The Coca-Cola Company, who are
authorized to prepare, package, sell and distribute beverages under certain
specified trademarks of The Coca-Cola Company.
54. [53]
2.4.4 PRODUCTS
Coca-Cola, Diet Coke, ThumsUp, Sprite, Fanta, Limca, Maaza, Minute Maid
Pulpy Orange, Minute Maid Nimbu Fresh ,Burn, KinleyWater ,KinleySoda
,Schweppes, GEORGIAGold
2.4.5OBJECTIVES
The main objectives for the Coca-Cola Company are to be globally known as a
business that conducts business responsibility and ethically and to accelerate
sustainable growth to operate in tomorrow's world which forms the foundation
for companies in the decision making process.
Strategies
The Coca-Cola company aims to be globally known, they do this by targeting
different areas across the globe with different products, gaining their brand
name and popularity. All the bottling partners work closely with their customers
such as convenience stores, grocery stores, movie theaters and street vendors to
create and use localized strategies developed in partnership with the company.
They make decisions in realigning their business models to match the objectives
of the company by using strategies and tactics in the analysis of their
performance.
55. [54]
2.4.6 HISTORY OF COCA-COLA
1886-1892:Atlanta Beginnings
In 1886,in New York,like many people who change history, John Pemberton, an
Atlanta pharmacist, was inspired by simple curiosity. One afternoon, he stirred
up a fragrant, caramel-colored liquid and, when it was done, he carried it a few
doors down to Jacobs' Pharmacy. Here, the mixture was combined with
carbonated water and sampled by customers who all agreed - this new drink was
something special. So Jacobs' Pharmacy put it on sale for five cents (about 3p) a
glass.
Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola, and
wrote it out in his distinctive script. To this day, Coca-Cola is written the same
way. In the first year, Pemberton sold just nine glasses of Coca-Cola a day. A
century later, The Coca-Cola Company has produced more than 10 billion
gallons of syrup.
1893-1904:BeyondAtlanta
Asa Candler, a natural born salesman, transformed Coca-Cola from an invention
into a business. He gave away coupons for complimentary first tastes of Coca-
Cola, and outfitted distributing pharmacists with clocks, urns, calendars and
apothecary scales bearing the Coca-Cola brand. Inevitably, the drink's
popularity led to a demand for it to be enjoyed in new ways. In 1894, a
Mississippi businessman named Joseph Biedenharn became the first to put
Coca-Cola in bottles. 1905-1918:Safeguarding the brand
56. [55]
The company also decided to create a distinctive bottle shape to assure people
they were actually getting a real Coca-Cola. The Root Glass Company began
manufacturing the famous contour bottle. The contour bottle, which remains the
signature shape of Coca-Cola today, was chosen for its attractive appearance,
original design and the fact that, even in the dark, you could identify the
genuine article.
1919-1940:The Woodrufflegacy
Perhaps no person had more impact on The Coca-Cola Company than Robert
Woodruff. In 1923, four years after his father Ernest purchased the company
from Asa Candler, Woodruff became the company's president.
1941-1959:The warand its legacy
In 1941, America entered World War II. Thousands of men and women were
sent overseas. Woodruff ordered that 'every man in uniform gets a bottle of
Coca-Cola for five cents, wherever he is, and whatever it costs the company'.
During the war, many people enjoyed their first taste of the beverage, and when
peace finally came, the foundations were laid for Coca-Cola to do business
overseas.
1960-1981:Aworld of customers
After 70 years of success with one brand, Coca-Cola, the company decided to
expand with new flavors. Fanta, originally developed in the 1940s, was
57. [56]
introduced in the 1950s, while Sprite followed in 1961, with TAB in 1963 and
Fresca in 1966.
1982-1989:DietCokeand new Coke
The 1980s - the era of legwarmers, headbands and the fitness craze, and a time
of much change and innovation at The Coca-Cola Company. In 1981, Roberto
C Goizueta became chairman of the board of directors and CEO of The Coca-
Cola Company.
1990-1999:Newmarkets and brands
The 1990s were a time of continued growth for The Coca-Cola Company. The
company's long association with sports was strengthened during this decade,
with ongoing support of the Olympic Games, FIFA World Cup.The year 1993
saw the introduction of the popular Always Coca-Cola advertising campaign,
and the world met the lovable Coca-Cola Polar Bearfor the first time.
2000-Now
The last decade marked an increase in Coca-Cola's efforts to create a sustainable
framework for the future. In 2009, the company launched Live Positively - a
public commitment to making a positive difference in the world by redesigning
the way we work and live so that sustainability is part of everything we do.
58. [57]
2.4.7 SWOT ANALYSIS
STRENGTHS
Global reach with presence in over 200 countries
Strong and efficient supply chain network, ensuring that all the products
are available even in the most remote places.
Strong financial condition
CSR activities in the field of water conservation and recycling, education,
health etc.
Long association with international sports events, sponsorships
WEAKNESS
The presence of traces of pesticides in the cola beverages have caused
damage to the brand image
No presence in the snacks and food industry
Lack of proper distribution
OPPORTUNITIES
Acquire other companies
Diversify its productportfolio by entering into snacks industry to
compete with Pepsi Co
THREATS
Strong competition in the aerated drinks segment from PepsiCo means
constant fight over market share.
59. [58]
Health consciousness amongst people
Difficulty in complying with different government regulations and norms
in different countries
Inflation, economic slowdown and instability
2.4.8 COMPANYBACKGROUND
Name The CocaCola Company
Industries served Beverages
Geographic areas served Worldwide
Headquarters U.S.
Current CEO Muhtar Kent
Revenue $ 48.01 billion (2012)
Profit $ 9.01 billion (2012)
Employees 146,200
Main Competitors
PepsiCo Inc., Dr Pepper Snapple Group, Inc.,
Unilever, GroupeDanone, Kraft Foods Inc., Nestlé
S.A. and others.
60. [59]
Muhtar Kent is Chairman of the Board and Chief Executive Officer of
The Coca-Cola Company, a position he has held since April 2009. Previously
he was President and Chief Executive Officer and earlier, President and Chief
Operating Officer.
2.4.9 FUTURE FOCUS
2020 VISION
To continue to thrive as a business over the next ten years and beyond, we must
look ahead, understand the trends and forces that will shape our business in the
future and move swiftly to prepare for what's to come.
We must get ready for tomorrow today. That's what our 2020 Vision is all
about. It creates a long-term destination for our business and provides us with a
sustainable "Roadmap" for winning together with our bottler partners.
2.4.10 ACHIEVEMENTS
Coca cola India won the Delhi Government’s Bhagirathi award for its efforts in
water conservation and community development.
The World Environment Foundation(WEF)conferred the Golden Peacock
Environment Management Special Commendation for the year 2006.
The ISO 14001 certificate is the internationally recognized standard of
Environmental Management.
62. [61]
The theoretical framework for the study on “Penetration of the brand Coke”
includes the concepts related to marketing, sales, market penetration,
Ansoffgrowthmatrix, pricingstrategies, promotionalactivities, brand perception,
STP approach, customer’s tastes and preferences. All the above concepts are
studied because they have a great impact on the sales of coke products which is
required to calculate Penetration of the brand coke.
Marketing is the process of communicating the value of a product or service
to customers, for the purpose of selling the product or service. It is a critical
business function for attracting customers. Marketing and sales differ greatly,
but have the same goal. Selling is the final stage in Marketing, which also
includes Pricing, Promotion, Positioning and Product (the 4Ps).
A sale is the act of selling a productor service in return for money or other
compensation. Signaling completion of the prospectivestage, it is the beginning
of an engagement between customer and vendor or the extension of that
engagement.
Market penetration is the percentage of a target market that consumes a
product or service. Market penetration can also be a measure of one
company's sales as a percentage of all sales for a product.
A measure of the amount of sales or adoption of a product or service compared
to the total theoretical market for that product or service. The amount of sales or
adoption can be an individual company's sale or industry while the theoretical
market can be the total population or an estimate of total potential consumers
63. [62]
for the product. It is a measure of brand or category popularity. It is defined as
the number of people who buy a specific brand or a category of goods at least
Once in a given period, divided by the size of the relevant market population.
Market penetration is one of the four growth strategies of the Product-Market
Growth Matrix as defined by Ansoff. Market penetration occurs when a
company penetrates a market in which current or similar products already exist.
Penetration is a measure of brand or category popularity. It is defined as the
number of people who buy a specific brand or a category of goods at least once
in a given period, divided by the size of the relevant market population
Purpose
Often, managers must decide whether to seek sales growth by acquiring existing
category users from their competitors or by expanding the total population of
category users, attracting new customers to the market. Penetration metrics help
indicate which of these strategies would be most appropriate and help managers
to monitor their success. These equations might also be calculated for usage
instead of purchase.
Construction
Market penetration can be defined as the proportion of people in the target who
bought (at least once in the period) a specific brand or a category of goods. Two
key measures of a product’s 'popularity' are penetration rate and penetration
share. The penetration rate (also called penetration, brand penetration or market
64. [63]
penetration as appropriate) is the percentage of the relevant population that has
purchased a given brand or category at least once in the time period under study.
A brand’s penetration share, in contrast to penetration rate, is determined by
comparing that brand’s customer population to the number of customers for its
category in the relevant market as a whole.
Market penetration is the least risky growth strategy as the organization's
experience with its existing markets increases the odds ofsuccess.
However, an organization should only pursue a market penetration growth
strategy if at least one of the following conditions exists:
1. Unsaturated market
2. Increasing industry growth rate, but decreasing competitive market share
3. Current customers are likely to purchase higher quantities of existing
products or services
4. Economies of scale provide a competitive edge
65. [64]
3.1 ANSOFF GROWTHMATRIX
Figure 3.1 ANSOFF growth matrix
1. Market Penetration
Market penetration means trying to increase sales of an organization's existing
products or services in its existing markets. This can be accomplished by
strengthening current customer relationships to increase their rate of
product/service utilization or trying to attract competitor customers or current
non-users.
Market penetration seeks to achieve four main objectives:
Maintain or increase the market share of current products – this can be
achieved by a combination of competitive pricing strategies, advertising,
sales promotion and perhaps more resources dedicated to personal selling
Secure dominance of growth markets
66. [65]
Restructure a mature market by driving out competitors; this would
require a much more aggressive promotional campaign, supported by a
pricing strategy designed to make the market unattractive for competitors
Increase usage by existing customers – for example by introducing
loyalty schemes
A market penetration marketing strategy is very much about “business as
usual”. The business is focusing on markets and products it knows well. It is
likely to have good information on competitors and on customer needs. It is
unlikely, therefore, that this strategy will require much investment in new
market research.
2.Market Development
Market development means trying to increase sales of an organization's current
products or services in new markets. Market development may also involve
identifying new uses for an existing product or service.
3.Product Development
Productdevelopment means offering new or improved products or services in
an organization's existing markets.
4.Diversification
Diversification means moving into entirely different lines of business----
unfamiliar products, services or markets.
3.2 CONSUMER TASTES AND PREFERENCES
67. [66]
Consumer preferences and tastes are key factors affecting consumer purchase
decisions and sales of the products.Changes in taste lead to increased or
decreased demand, which is one factor that economists consider when looking
at changes in demand.
Consumer preferences represent each individual's desires for goods and
services, which translate to choices based on income or wealth combined with
the consumer's time to define consumption activities.
3.3 CONSUMPTION PATTERNS AND POTENTIAL OF MARKET:
The majority of urban and suburban Indians consume non-alcoholic store
bought beverages “less than once a day” suggesting a large untapped market
potential. In order to increase consumption and penetration of such beverages
however, manufacturers will have to address the two primary reasons why some
Indians abstain entirely, that is, health concerns and undesirable taste - as
highlighted in Boston Analytics’ survey of 8300 people across 15 cities.
As with most product categories in India, consumption behavior and
preferences differ dramatically across cities in India. While Tier 1 cities (or the
largest metros in India) report the highest consumption, significant differences
exist among these cities, e.g., in terms of the time of day store-bought non-
alcoholic beverages are consumed, preferred brands for carbonated beverages,
reasons for consuming a particular product type, etc.). Such differences
demonstrate the need for carefully targeted marketing campaigns that appeal to
the needs, behaviors and preferences of local communities.
68. [67]
3.4 PRICING STRATEGIES
Pricing strategies for products or services encompass three main ways to
improve profits. These are that the business owner can cut costs or sell more, or
find more profit with a better pricing strategy. When costs are already at their
lowest and sales are hard to find, adopting a better pricing strategy is a key
option to stay viable.
Merely raising prices is not always the answer, especially in a poor economy.
Many businesses have been lost because they priced themselves out of the
marketplace. On the other hand, many business and sales staff leave "money on
the table". One strategy does not fit all, so adopting a pricing strategy is a
learning curve when studying the needs and behaviors of customers and clients.
Customer-basedpricing
Penetrationpricing
You often see the tagline “special introductory offer” – the classic sign
of penetration pricing. The aim of penetration pricing is usually to increase
market share of a product, providing the opportunity to increase price once this
objective has been achieved.
Penetration pricing is the pricing technique of setting a relatively low initial
entry price, usually lower than the intended established price, to attract new
customers. The strategy aims to encourage customers to switch to the new
product because of the lower price.
69. [68]
Penetration pricing is most commonly associated with a marketing objective of
increasing market share or sales volume. In the short term, penetration pricing
is likely to result in lower profits than would be the case if price were set higher.
Price skimming
Skimming involves setting a high price before other competitors come into the
market.
Competitor-basedpricing
If there is strong competition in a market, customers are faced with a wide
choice of who to buy from. They may buy from the cheapest provider or
perhaps from the one which offers the best customer service.
Most firms in a competitive market do not have sufficient power to be able to
set prices above their competitors. They tend to use “going-rate” pricing –
i.e. setting a price that is in line with the prices charged by direct
competitors.An advantage of using competitive pricing is that selling prices
should be line with rivals, so price should not be a competitive disadvantage.
Costbasedpricing
This involves setting a price by adding a fixed amount or percentage to the
cost of making or buying the product.
The Coca-Cola Company has been very consistent with their pricing strategy
over the many years they have been in business. Because they have a strong
70. [69]
competitor, they have to keep their prices in line to compete. The ultimate goal
of the company is to maximize shareholder value. The will often reduce the
price of their products when entering new markets. They do this to raise brand
awareness and face the competition. Once they are established, they move the
prices back up to position themselves as a premium product..
Following factors Coca Cola keptin mind while determining the pricing
strategy.
➢ Price should be set according to the productdemand of public.
➢ Price should be that which gives the company maximum revenue.
➢ Price should not be too low or too high than the price competitor is charging
from
Their customers otherwise nobodywill buy your product.
➢ Price must be keeping the view of your target market.
The price of CocaCola, despite being market leader is the same as that of its
competitor
3.5 STP APPROACH
STP marketing is a three-step approach to building a targeted marketing plan.
The "S" stands for segmenting, the "T" for targeting and the "P" for positioning.
Going through this process allows a business owner and marketing consultants
or employees to formulate a marketing strategy that ties company, brand and
product benefits to specific customer market segments.
71. [70]
Segmentation
Once the market has been defined, the next step is to segment the market, using
a variety of different segmentation bases/variables in order to construct groups
of consumer. In other words, allocate the consumers in the defined market to
similar groups (based on market needs, behavior or other characteristics).
Targeting
There are many factors to consider when choosing a target market. These
factors include: firms strategy, the attractiveness of the segment, the competitive
rivalry of the segment, the firm’s ability to successfully compete and so on.
Positioning
Firms need to identify how to position their products/brands in the target
market. As it is likely that there are already competitive offerings in the market,
the firm needs to work out how they can win market share from established
players. Typically this is achieved by being perceived by consumers as being
different, unique, superior, or as providing greater value.
Brand experiences and perceptions are developed over time through a variety
of sources, including:
Previous experience with the brand
Interactions with sales, customer service, and other employees
Recommendations from friends and colleagues
Reviews by reputable sources
72. [71]
Advertising
Brand managers need to understand how customers perceive and select brands
in specific product categories and market segments. You also need to know
what is important to customers when making a brand decision, where customers
get information about products and services, and what customers think about
your brand.
3.6 PROMOTION:
Promotion is one of the market mix elements, and a term used frequently
in marketing. The specification of five promotional mix or promotional plan.
These elements are personal selling, advertising, sales promotion, direct
marketing, and publicity. A promotional mix specifies how much attention to
pay to each of the five subcategories, and how much money to budget for each.
A promotional plan can have a wide range of objectives, including: sales
increases, new product acceptance, creation of brand equity, positioning,
competitive retaliations, or creation of a corporate image. Fundamentally,
however there are three basic objectives of promotion. These are:
1. To present information to consumers as well as others.
2. To increase demand.
3. To differentiate a product.
There are different ways to promote a product in different areas of media.
Promoters use internet advertisement, special events, endorsements, and
73. [72]
newspapers to advertise their product. Many times with the purchase of a
product there is an incentive like discounts, free items, or a contest. This is to
increase the sales of a given product.
75. [74]
1.What is the type of outlet?
Type of the outlet (In a sample of 100)
Table 4.1
Type Percentage
Kirana shops 46
Pan shops 31
Departmental stores 17
Super market 6
Figure 4.1
INTERPRETATION
The above data clearly shows that majority of the respondents were pan shop owners in the
covered area as compared to kirana shops, departmental stores and supermarkets.
Type of oultet
50
45
40
35
30
25
20
15
10
5
0
46
31
17 Percentage
6
Kirana shops Pan shops Departmental Super market
stores
76. [75]
2.Where is the outlet located?
Location of outlet (In a sample of 100)
Table 4.2
Location Percentage
Main Road 41
Adjacent Roads 59
Figure 4.2
Location
59
60
50 41
40
Percentage
30
20
10
0
Main Road Adjacent Roads
INTERPRETATION
From the above data,it can be clearly seen that 59% of the outlets are located on the adjacent
roads and the rest are located on the main road.
77. [76]
3. Which brand of soft drink has the highest sale in your outlet?
Producthaving highest sales (In a sample of 100)
Table 4.3
Brand Percentage
Coca cola 62
Pepsi 25
Fizz 8
Others 5
Figure 4.3
INTERPRETATION
From the above data ,it is clearly seen that Coca-Cola products have the highest sale
from a sample of 100 outlets(i.e. 62%) as compared to its competitors’ products.
Brand having highest sales
70
60
50
40
30
20
10
0
62
25 Percentage
8
5
Coco Cola Pepsi Fizz Others
78. [77]
4. Which productof CocaCola is mostly preferred by the customers?
Productof Cocacola preferred by customers
Table 4.4
Product No of respondents
Thumps Up 37
Coca cola 26
Sprite 13
Maaza 15
Others 9
Figure 4.4
INTERPRETATION
From the above data,we can see that from a sample of 100 outlets, Thumps Up is the most
preferred product by the customers when compared to other products.
Product preferredby customers
40
35
30
25
20
15
10
5
0
37
26
13
15 No. of outlets
9
Thumps up Coca cola sprite maaza others
79. [78]
5.How is the demand for Coke products in your outlet?
Demand for coke products (In a sample of 100 outlets)
Table 4.5
Demand No of respondents
Very Good 57
Good 38
Poor 5
Figure 4.5
INTERPRETATION
From the above data,it is seen that the demand for coke products is very good in 57 outlets,
good in 38 and poor in five outlets.
Demand for coke products
57
60
50
38
40
30 No of respondents
20
10
5
0
Very Good Good Poor
80. [79]
6.How often do you place order for Coke products?
Frequency of Order Placing (In a sample of 100)
Table 4.6
Frequency No of outlets
Daily 21
Alternate days 56
Weekly 23
Figure 4.6
INTERPRETATION
From the above data,it can be interpreted that most of the outlets(56) place their order for
coke products every alternate day,21 outlets daily and 23 outlets place the order weekly
which represent the demand for coke products.
Frequency of order placing
56
60
50
40
30 21 23 No of outlets
20
10
0
Daily Alternate days Weekly
81. [80]
7. What is the effect of pricing decision on the sales of coke?
Effect of pricing on sales (In a sample of 100)
Table 4.7
Response Percentage
High 51
Moderate 37
Low 12
Figure 4.7
INTERPRETATION
From the above data, we can see that 51 outlets said that pricing plays a high role in sales, 37
said that it has a moderate effect and 12 said that it has a low effect.
Effect of pricing
60 51
50
37
40
30 Percentage
20 12
10
0
High Moderate Low
82. [81]
8.Which age group of customers mostly prefer coke products?
Preference of coke products bydifferent age groups (In a sample of 100)
Table 4.8
Age Group Percentage
Children 26
Teenagers 43
Middle age 22
Old age 9
Figure 4.8
INTERPRETATION
From the above data, we can see that teenagers prefer the coke products as per the response
from 43 outlets.
Preference by different agegroups
43
45
40
35
30
25
20
15
10
5
0
26
22
Percentage
9
Children Teenagers Middleage Old age
83. [82]
9. What quantity of coke products have maximum sales in your outlet?
Packs having highest sales (In a sample 100)
Table 4.9
Quantity No of respondents
200ml and 300ml 23
400ml and 600ml 26
1.25l and 1.75l 38
2.25l 13
Figure 4.9
INTERPRETATION
From the above chart, it can be interpreted that during the whole year,1.25l and 1.75l packs
are sold the most according to the responses given by 38 outlets .
Quantity of coke products having highest sales
38
40
35
30
25
20
15
10
5
0
26
23
No. of outlets
13
200ml & 300ml 400ml & 600ml 1.25L & 1.75 l 2.25 L
84. [83]
10. What quantity of coke products are sold the most in summer season?
Highest sold packs in summer
Table 4.10
Quantity Percentage
200ml and 300ml 47
400ml and 600ml 27
1.25l and 1.75l 16
2.2.5l 10
Figure 4.10
INTERPRETATION
From the above data,it is seen that during summer season,there is more demand for glass
bottles(200ml and 300ml) and the moderate demand is for 400ml and 600ml PET bottles .
Highest sold quantity in summer
47
50
45
40
35
30
25
20
15
10
5
0
27
16
No. of outlets
10
200ml & 300ml 400ml & 600ml 1.25L & 1.75 l 2.25 L
85. [84]
11. How many cases of glass bottles are sold weekly on an average?
Weekly sale of glass bottles (In a sample of 100)
Table 4.11
No of cases No of respondents
Up to 1(24 bottles) 5
2-3 28
4-6 38
7 and above 29
Figure 4.11
INTERPRETATION
From the above data,it can be interpreted that weekly sale in 38 outlets is 4-6 cases, and more
than 7 cases are sold in 29 outlets which depicts that 4-6 cases are sold on an average per
week in most of the outlets.
Weekly sale of glass bottles
38
40
35
28 29
30
25
20
15
No. of outlets
10 5
5
0
Up to one case 2-3 cases 4-6 cases 7 & above
86. [85]
12. How many curettes/cases of PET bottles are sold weekly on an average?
Weekly average sale of PET bottles (In a sample of 100 outlets)
Table 4.12
No of cases No of outlets
Up to 1 (24 bottles) 7
2-3 24
4-6 44
7 and above 25
Figure 4.12
INTERPRETATION
From the above data , we can see that 44 outlets sell 4-6 cases in a week.
Weekly averagesales of PET bottles
44
45
40
35
30
25
20
15
10
5
0
24 25
No. of outlets
7
Up to one case 2-3 cases 4-6 cases 7 & above
87. [86]
13. How do you rate the behavior of salesmen during order taking and order
delivery?
Behavior of salesmen during order delivery and taking
Table 4.13
Rating No of respondents
Excellent 17
Satisfactory 74
Poor 9
Figure 4.13
INTERPRETATION
From the above data, we can see that 74 respondents rated salesmen behavior as
satisfactory,17 as excellent and 9 as poor.
Behavior of salesmen
74
80
70
60
50
40 No of respondents
30
20
10
0
17
9
Excellent Satisfactory Poor
88. [87]
14. In terms of service, which brand is rated favorable by the consumers?
Favorable rating given in terms of service (In a sample of 100)
Table 4.14
Brand No of outlets
Pepsi 28
Coca cola 17
Both 47
None 8
Figure 4.14
INTERPRETATION
From the above data, we can see that individually Pepsi is better in services, compared to
coca cola, whereas majority of outlets rated them both as equal.
Favorableratingin terms of service
50
45
40
47
35
30
25
20
15
10
5
0
28
17
No. of outlets
8
Pepsi Coca cola both None
89. [88]
15. Do you face any problems with Cocacola in any aspect?
Problems faced with Coke
Table 4.15
Response No of respondents
Yes 58
No 42
Figure 4.15
INTERPRETATION
From the above data, we can see that 58 outlets had a problem with coke whereas 42 of them
had no complaints. Majority of them had problems.
Problems faced with coke
58
60
50 42
40
30
No. of respondents
20
10
0
Yes No
90. [89]
16. If yes, which kind of problem is mostly faced with Cocacola?
Kind of problem mostly faced (In a sample of 58)
Table 4.16
Problem Percentage
Cooler problem 31
Order delivery on time 22
Response from agents 5
Figure 4.16
INTERPRETATION
From the above data, it can be interpreted that maximum percentage of respondents are
facing problem with Coca cola coolers which occupy 56%,Order delivery on time is problem
faced by 36% of respondents and response from agents is a problem for 8% of the
respondents .
Problems mostly faced
35
30
25
31
22
20
15
Percentage
10
5
0
5
Cooler problem Order delivery on Response from
time agents
91. [90]
17. Why customers prefer coke products?
Reasons for customer’s preference (In a sample of 100)
Table 4.17
Reasons Percentage
Price 24
Taste 38
Quantity 10
Availability 28
Figure 4.17
INTERPRETATION
From the above data, we can see that 38 outlets said that the customers prefer coke for its
taste, 28 outlets said that the customers prefer coke due to its availability.
Reasons for Customers Preference
38
40
35
28
30
25
20
24
No. of respondents
15
10
5
0
10
Price taste Quantity Availability
92. [91]
18. Do you follow any sales promotion in your outlet?
Sales Promotion in your outlet (In a sample of 100)
Table 4.19
Response No of respondents
Yes 84
No 16
Figure 4.19
INTERPRETATION
From the above data we can see that 84% of the outlets follow sales promotion.
Sales Promotion
84
90
80
70
60
50
40
30
20
10
0
No of respondents
16
Yes No
93. [92]
19. If yes, which kind of promotional activity do you think that attracts more
customers?
Kind of promotional activity (In a sample of 84)
Table 4.19
Kind of promotional activity Percentage
Discounts 58
Combo offers 19
Gift vouchers 7
Figure 4.19
INTERPRETATION
From the above data, we can see that customers are mainly attracted towards discounts
compared to combo offers and gift vouchers.
Kind of promotional activity
58
60
50
40
30 Percentage
19
20
7
10
0
Discounts Combo offers Gift vouchers
94. [93]
20. According to you what may increase the sale of Coca-Cola products?
Strategy to increase sales (In a sample of 100)
Table 4.20
Strategy Percentage
Price discount 56
Sales campaign 32
Attractive packing 12
Figure 4.20
INTERPRETATION
From the above data we can see that, 56 outlets suggested that discount in prices would
increase sales and 32 suggested that sales campaign would increase sales.
Suggested strategy to increase sales
56
60
50
40 32
30 Percentage
20 12
10
0
Pricediscount Sales campaign Attractive packing
96. [95]
5.1 FINDINGS
The study was done mostly in the traditional formats of retail outlets.
From a sample of 100 outlets, Coca cola has the highest sales followed by Pepsi, Fizz
etc.
It is found that the demand for coke products is good in most of the outlets and
Thumps Up is mostly preferred by customers.
Most of the retailers place order for coke products every alternate day which shows
that there is good market demand.
51% of the respondents said that there is a high effect of price variations on sales and
hence pricing must be done carefully.
It is found that coke products are mostly preferred by teenagers and children and the
factor that highly influences the purchase is taste.
Among different quantities of coke, 1.25lt and 1.75lt bottles have the highest sales,
whereas in summer season, glass bottles are sold the maximum.
On an average, most of the respondents told that 4-6 cases of glass bottles and PET
bottles are sold per week.
In terms of service, most of the respondents rated Pepsi favorable than coke which
suggests coke to improve in its service.
The retailers face problems with coke, mostly regarding the cooler and order delivery
on time.
Most of the retailers follow sales promotional activities in their outlets. The activity
that attracts customers the most and increases sales is discounts and combo offers.
97. [96]
5.2 RECOMMENDATIONS
In accordancewith the findings of the study, I would like to give some
suggestions on my behalf.
Delivery should be done more swiftly and on time.
Many of the respondents have preferred on the spot delivery like Pepsi
instead of advance booking which is followed by Coke.
Pricing strategies followed by coke are fluctuating frequently and hence
the prices set should be made stable for a certain period until the
customers get acquainted to that price.
Since there are many problems faced by the retailers in terms of service,
Coke should improve on its service.
As promotional activities have a great impact on sales and market share,
more promotions can be followed in social networking sites which will
improve their sales.
Rural area should also be given proper consideration.
98. [97]
5.3 CONCLUSION
Soft drinks are an impulse product. The Indian population is the largest in the
world today which provides so much of opportunity for the soft drink
manufacturers. So, they should implement apt strategies in order to attract more
customers and gain good market share.
From the above findings and suggestions, it can be concluded that different
pricing strategies, various promotional activities like discount coupons, combo
offers should be followed in order to improve their sales, increase their market
share and gain market dominance over their competitors. It can also be
concluded that Coke products are having high demand in the market and they
need to improve in terms of service to the retailers.
Coke should concentrate more on the factors that influence the customer’s
purchase of coke products like age group, tastes and preferences, season,
pricing, quantity, availability, etc so that it attracts new customers and also
maintains the existing customer’s brand loyalty.
100. [99]
QUESTIONNAIRE
Name of the Outlet:
Name of the ESM:
GCC No.:
1.What is the type of outlet?
A.Kirana shops B.Pan shops C.Departmental storesD.Super markets
2.Where is the outlet located?
A.Main road B.Adjacent road
3.Which brand of soft drinks has the highest sale in your outlet?
A.Thumps Up B.Coca cola C.Fizz D.Others
4.Which product of Coca Cola is mostly preferred by the customers?
A.Thumps Up B.Coca cola C.Sprite D.Maaza D.Others
5.How is the demand for Coke products in your outlet?
A.Very Good B.Good C.Poor
6.How often do you place order for Coke products?
A.Daily B.Alternate days C.Weekly
7. What is the effect of pricing decision on the sales of coke?
A.High B.Moderate C.Low
8.Which age group of customers mostly prefer coke products?
A.Children B.Teenagers C.Middle age D.Old age
9.What quantity of coke products have maximum sales in your outlet?
A.200ml & 300ml B.400ml & 600ml C.1.25l & 1.75l D.2.25l
101. [100]
10.What quantity of coke products are sold the most in summer season?
A.200ml & 300ml B.400ml & 600ml C.1.25l & 1.75l D.2.25l
11.How many cases of glass bottles are sold weekly on an average?
A.Upto 1 case B.2-3 cases C.4-6 cases D.7 and above
12. How many curettes/cases of PET bottles are sold weekly on an average?
A.Upto 1 case B.2-3 cases C.4-6 cases D.7 and above
13.How do you rate the behavior of salesmen during order taking and order delivery?
A.Excellent B.Satisfactory C.Poor
14. In terms of service,which brand is rated favourable by the consumers?
A.Pepsi B.Coca cola C.Both D.None
15.Do you face any problems with Coca cola in any aspect?
A. Yes B. No
16. If Yes,which kind of problem is mostly faced with Coca cola?
A.Cooler B.Order Delivery C.Response from agents
17. Why customers prefer coke products?
A.Price B.Taste C.Quantity D.Availability
18.Do you follow any sales promotion in your outlet?
A.Yes B.No
19. Ifyes,which kind of promotional activity do you think that attracts more customers?
A.Dicounts B.Combo offers C.Gift Vouchers
20. According to you what may increase the sale of Coca-Cola products?
A.Price discounts B.Sales campaign C.Attractive packing
102. [101]
REFERENCES:
Kothari.C.R.(2000).” Research methodology and Techniques”(2nd Edition),
WishwaPrakashan Private Limited, New Delhi.
Philip Kotler,(2000), “ Marketing Management”, (Millennium Education), prentice hall
India Ltd. New Delhi.
Sharma D.D (1999),’Marketing Research”, Sultan chand and Chand and Co. (Edition 3rd)
New Delhi.
Stephen Robbins,”Organizational Behavior(13th Edition)
www.coca-colaindia.com
www.investopedia.com
www.free-management-ebooks.com