Study of Coca-Cola

Sales And

Brands

Submitted To:

Institute Of Management Badnapur, Dist. Jalna

By:

Vishal Mane.
MBA-I Year-2010-2011. Guide By: Mrs. Rojekar Mam
Pathrikar

Director:
Mr. Devesh

Dr.Babasaheb Ambedkar Marathwada, University Aurangabad.

ACKNOWLEDGEMENT

I feel great pleasure for the completion of this project. At the very outset I would express my sincere thanks and deep sense of gratitude to personnel who helped me during the collection of data and gave me rare and valuable guidance for the preparation of this report. I am thankful to my project guide Mrs. Rojekar Mam for his timely guidance, cooperation and encouragement. I also express my gratitude towards my parents and sincere thanks to my friends, well wishers for their encouragement and kind co-operation to complete this report.

DECLARATION

I, Vishal Mane,a student of MBA (2010-1011) studying at INSTITUTE OF MANAGEMENT, BADNAPUR,declare that the project work titled- Study of Coca-Cola Sales and Brands was carried out by me in partial fulfillment of the MBA programme.

This programme was undertaken as a part of academic curriculum according to the Dr. Baba Saheb Ambedkar Marathwada University rules and norms and by no commercial interest and motives.

Vishal Mane

TABLE OF CONTENT

1.

Introduction

2.

Objectives

3.

Company Profile

4.

Sales Strategys

5.

Research Methodology

6.

Suggestions

7.

Conclusion.

8.

Bibliography

INTRODUCTION HISTORY OF COCACOLA

The world has changed in many ways since pharmacist, John Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the product mean so many things to hund CocaColas 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... 1950 - Advertising on on the television began. Currently Coca-Cola is advertised on over five hund Coca-Cola 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 onto 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 hundCoca-Cola 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 hundCoca-Cola number. Most of the callers were shocked and/or outraged, many said that they were considering switching to Pepsi. Within six weeks, the eight hundCoca-Cola number was being jammed by six thousand calls a day. The company also fielded over forty thousand letters, which were all answeCoca-Cola 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 a low of 1.4 percent. This was said to be a classic marketing retreat. Coca-Cola executives admitted that they had goofed by taking the old Coke off the market. The CocaCola company's eight hundCoca-Cola number received eighteen thousand calls of gratitude. The comeback of old Coke drove stock prices to the highest level in twelve years. This was said to be the only way to regain the lead on the cola wars. 1993 - Coca-Cola exceeds 10 Billion cases sold worldwide. 1996 - The Summer Olympics will be held in Atlanta, Georgia, the home of Coca-Cola. For more than 65 years, Coca-Cola has been a sponsor of the Olympics.

INDUSTRIAL PROFILE

SOFT DRINKS INDUSTRY IN INDIA

BEVERAGES

Alcoholic

Non-Alcoholic

Carbonated

Non-Carbonated

Cola

Non-Cola

Non-Cola

Since the early 1990s Coca-Cola Corporation and PepsiCo have been combating on what is known as the Beverage Battlefield in India. Today India is one of the most sought after countries for foreign investments because of their continually growing market opportunities. However during Coca-Cola and Pepsis attempts to broaden their global consumer bases both companies encounteCoca-Cola several obstructions on their pursuits of conquering the Indian soft drink market.

COKE IN INDIA
Despite the formidable track of its parent $18 billion giant in Atlanta USA.Coke India record 1800 crore soft drink makers is prominent.Cocacola enteCoca-Cola in India market after 16 years from Hathras Dec 1993.Cocacola became the undisputed leader of the Indian soft drink market because of their aquiring rights of Ramesh Chauhan aerated Parle drinks with one stroke of pen and a bill of 140 crore, coke picked by five brands Thums up, limca, Goldspot, Citra, Maaza with a combined rate of 65% with Thumsup alone accounting for 56% then 650 crore segment.

BENCHMARK

Cocacola ranks no.1 brand in the world by the business world survey followed by companies like Microsoft and IBM. Cocacola is the market leader in the whole world in beverage industry.
Business week magazine ranks Cocacola on 4th position in Indian

FMCG industry. Cocacola enjoys approx 60% market share in Indian beverage industry.

INTIAL DIFFICULTIES From a historical standpoint, Coca-Cola and Pepsi were facing obstructions even before entering the market in the late 1980s. Coca-Colas past venture in India had ended on bad terms with the Indian government when they refused to offer up their trade secrets. During the absence of foreign investment in the soft drink industry in India a local company, Parle, became the market leader. Parle invested a great deal into their leading brand, Thums Up, and played a dominant role in the soft drink industry until the liberalization of the Indian economy in 1991. After this time many of the political and legal obstacles facing Coca-Cola and Pepsi were lessened.

POLITICAL CHALLENGES Other political challenges hindeCoca-Cola the success of Coca-Cola and Pepsi in India as well. In 2003, when the United States and Britain invaded Iraq, the All-India Anti-Imperialist Forum called a boycott on goods from America and India. Indians protested American companies for the war and specifically targeted Coca-Cola and Pepsi products. While the war was beyond control for these two companies, management perhaps couldve done more to not only attempt to pCoca-Colaict the backlash from Indian consumers due to the war, but also couldve created advertisement campaigns to address the situation. While political and legal factors produced problems for Coca-Cola and Pepsi, both Coca-Cola and Pepsi did a lot of things to prevent that situation

from happening. Both companies heavily participated in the cultural festival of Navratri in western India to promote their products and create brand awareness in a culturally traditional setting. The companies also produced television and print advertisements that linked important Indian themes to their products by building a connect using the relevant local idioms CocaCola and Pepsi both utilized popular Indian sporting events, athletes, and celebrities to endorse their products. Both companies couldve made the mistake of using American celebrities or already made American commercials to advertise their products in India, but instead made the right move by making advertisements to specifically target their foreign market.

OBJECTIVES OF STUDY
To find out the present status of ThumsUp, Coke, Sprite, Limca, Fanta, Maaza at the retail outlets in the area. To study the receipting of brand among retailers. The study helps to know the distribution and marketing strategy of the company. To find out available opportunities in the market by finding gaps in competitors penetration. To collect data from retailers for the activation of new channels. Find out ways to increase sales new launches to different channels. To study the presale concept of the coke. To enhance the market share of the company. By this study company can know its growth. This study helps the company to know their actual position in the market.

SHELF DISPLAY

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 Coca-Colauced the price of their soft drinks in 2003 from 15% to 25% nationwide. To compete competitively in the market, Pepsi Coca-Colauced their prices as well. 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 ranging in size from 200 ml to 500 ml to adapt to cultural needs and increase their sales. By offering smaller sized bottles many consumers also increased the frequency in which they were purchasing the soft drinks.

COCACOLA IN INDIA
Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveals its formula to the government and Coca-Colauces its equity stake as requiCoca-Cola under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. After

a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Cokes acquisition of local popular Indian brands including Thums Up (the most trusted brand in India21), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also strong consumer preference. This combination of local and global brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes while also tapping into traditional domestic markets. Leading Indian brands joined the Company's international family of brands, including Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched the Kinley water brand and in 2001, Shock energy drink and the powdeCoca-Cola concentrate Sunfill hit the market. From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one of the countrys top international investors.22 By 2003, CocaCola India had won the prestigious Woodruf Cup from among 22 divisions of the Company based on three broad parameters of volume, profitability, and quality. Coca-Cola India achieved 39% volume growth in 2002 while the industry grew 23% nationally and the Company reached breakeven profitability in the region for the first time.23 Encouraged by its 2002 performance,

Coca-Cola India announced plans to double its capacity at an investment of $125 million (Rs. 750 crore) between September 2002 and March 2003.24 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 contractpackers 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 10ton trucks, open-bay three wheelers, and trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the cities.25 In addition to its own employees, Coke indirectly created employment for another 125,000 Indians through its procurement, supply, and distribution

COCACOLA:MISSION
Create consumer products services and communications customers service and bottling system strategy process and tools in order to create competitive advantage and deliver superior value to Consumers as a superior beverage experience. Consumers as an opportunity to grow profit through the use of finished drinks. Bottlers as an opportunity to make reasonable to grow profits and value added Suppliers as an opportunity to make reasonable when creating real value added in environment of system wide teamwork, flexible business system and continuous improvement. Indian society in form of contribution to economic and social development.

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 & Apple section:

 In the mango section:

In the juice section :

In the Soda Water and Bottled Mineral Water section:

BRANDS TAGLINE
Thumsup - Taste the thunder

Cocacola Sprite Limca Fanta Maaza

- Open happiness - Seedhi baat no bakwaas ,clear hai Fresh ho jao Go bite Bina guthli wala aam

BRAND AMBASSDORS
Thumsup Cocacola Sprite Fanta Limca -Akshay Kumar -Aamir Khan -Shahrukh Khan -Genelia Dsouza -Riya Sen

PACK
300ML 200ML 250ML 2 LTR 600ML 1.2 LTR 1 LTR

MAAZA

COKE

THUMS UP

FANTA

SPRITE

LIMCA

SODA YES NO NO NO YES NO

NO NO YES NO YES YES

YES YES NO YES YES NO YES

YES

YES

YES

YES YES NO YES YES NO YES

YES YES YES PACKAGING DETAILS NO YES YES NO NO YES YES NO YES NO YES YES NO

COMPETETIVE AREA
Competitive area among Coke & Pepsi
Coca-Cola India Pvt Ltd maintained its leading position in soft drinks in India, followed by PepsiCo India Holdings Pvt Ltd in 2006. Whilst the retail volume shares of Coca-Cola India and PepsiCo India slipped in 2006, as a result of the growing health concerns caused by the aftermath of the pesticides controversy, both maintained a comfortable lead over the other manufacturers. Parle ,Bisleri Ltd has steadily gained shares from the carbonates giants over the review period, to emerge as the third ranked company in 2006. The battleground for beverages has moved from carbonates to bottled water and fruit/vegetable juice, with manufacturers turning their attention towards these healthier beverages, as consumer interest continues to surge forward. A number of new players have enteCoca-Cola fruit/vegetable juice and bottled water, vying for a slice of the growing pie. While cricket had always been the most popular sport in India, with new technology coming into cricket from coverage to sports gear to day/night versions of the game, it was set to acquire the status of a religion in the sub-continent. Pepsi picked up the opportunity early on by not only contracting the rights to all Tests and One Day Internationals (ODIs) played in India, but also signing up top performers early such as Sachin Tendulkar and Rahul Dravid and creating some very cutting edge and memorable advertising campaigns with them. The distribution network of Coca cola had 6.5 lakh outlets across the country , which the company is planning to increase to 8 lakhs . On the other hand Pepsi Co's distribution network had 6 lakh outlets across the country which it is planning to increase to 7.5 Lakh .

ADVERTISING Advertising is a non promotion of goods & services by sponsor who can
identified and who has paid for his communication. Their purpose of advertisement is to sell something goods or services,idea ,person or place.

Manufacturing Plant

Sales and Distribution Operations

Distributors

Outlets

Outlets

CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

DISTRIBUTION NETWORK
HCCBPL has a wide and well-managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when they need it. A typical distribution chain at HCCBPL would be: Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail Stock --- Retail Shelf --- Consumer The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and wellorganized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.

Criteria for providing free chilling equipment

An ice box is provided for the sale of 1-2 crates daily to the retailers.

 For the sale of 5-6 crates daily a visi-cooler of 4 crates is provided. For the sale of 7-8 crates daily a visi-cooler of 7 crates is provided by

the company.
If the sale exceeds 9 crates daily then a visi-cooler of 9 crates or deep

fridger is provided by the company,

A STEPLIZER OF 1 KV to 5 KV is provided with the visi cooler & chest cooler,

SGA PROVIDING COMPANIES

Whirlpool India Limited Godrej Appliances Western refrigerator limited

Rockwel Industries

RESEARCH METHADOLOGY
The research includes the study which was descriptive in nature. It basically aims about how coke schemes plays in the mind of shopkeepers and the consumers. The study includes two methods(a)PRIMARY (b)SECONDARY Primary includes the following ways Observation Experiment Survey Here we include the primary method of survey

Research Instruments Questionnaire-A printed questionnaire was their to make the survey.

COCA-COLA scoring sheet

Sampling plan
Sampling unit - Owners of the retail outlets. Sampling size- 250 outlets Sampling procedure-Random sampling Sampling method- Retailers survey

SECONDARY DATA- For the secondary study data was not available so it is taken from company records.

LEADING BRAND OF COCACOLA

Brand share 7% 6% 8%
THUMSUP COKE SPRITE LIMCA FANTA MAAZA

14% 2%

63%

MARKET SHARE
MARKET SHARE

29%
COKE PEPSI

71%

FINDINGS
1). According to the demand of outlet owners, delivery of products are not made available in the outlets. 2). Efficient brands of coca cola are not available in outlets. 3). Sales people and delivery persons do not visit the outlets on a regular basis. 4). Advertisement materials are not available in the right time at the right place i.e. Different Channels like Grocery, Convenience, E&D. 5). Many outlet owners have complains on improperly working visicooler i.e. its cooling Capacity is low or its lights are not working. 6). Improper management is seen as No mechanics visit the outlets despite of Complaints issued by outlet owners 7). Visicoolers are not placed at their Prime locations in many outlets 8). Many outlet owners express deep in satisfaction towards coca-cola as they do not get any Prize or Cash discount as they receive from other companies.

SUGESSTIONS
1. Delivery position should be maintained to get good return from the market. 2. The company must try to make different brands of Coca-Cola available at every retail outlet whether it is large or small, otherwise the consumer may go for substitute. 3. Sales People and delivery persons should properly monitor the market whether stocks are available and are properly utilized in the market or not. 4. We can provide them beautiful display racks, tablemats, menu-cards etc, containing the trademark and brand name of the company. 5. Display material should be provided to the retailers on more regular basis to increase the sales level.
6. Maintenance work of refrigerator; i.e. purity must be improved.

CONCLUSION
This project is playing a very important role for the company. With the help of this project, sale of the company has been increased. Because in this project there is one market developer who has to ensure that Visi cooler must be on prime location, all brands must available, all brands must displayed in brand order i.e. COLOJK. All the activation elements like warm display rack, table top rack, standees etc must be available at all outlets come underCoca-Cola. All these elements help the company in increasing the sales because JO DIKHTA VO BIKTA HAI The Market share of coke is higher than Pepsi. Definitely when sales increase then profits also increases. With the help of this project company has increased its sale in Aurangabad region and also company can measure or check the performance of each retailers working all over the world with COCA COLA COMPANY.