Summer Internship Project Report On ENHANCING “PRODUCT RANGE SELLING” OF PRODUCTS OF COCA COLA By Ankur Khandelwal A0102211055 MBA – M&S Class of 2013 Under the Supervision of Mrs. Shilpa Singh Assistant Professor Department of International Business In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration – Marketing & Sales At AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2012
DECLARATION
Title of Project Report - Enhancing “Product Range Selling” of Coca Cola Products …………………………………………………………………………………… …
I declare (a)That the work presented for assessment in this Summer Internship Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged (b)That the work conforms to the guidelines for presentation and style set out in the relevant documentation.
Date: ……………
Ankur khandelwal A0102211055 MBA – M&S Class of 2013
DECLARATION
Title of Project Report - Enhancing “Product Range Selling” of Coca Cola Products …………………………………………………………………………………… …
I declare (a)That the work presented for assessment in this Summer Internship Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged (b)That the work conforms to the guidelines for presentation and style set out in the relevant documentation.
Date: ……………
Ankur khandelwal A0102211055 MBA – M&S Class of 2013
CERTIFICATE
I Shilpa Singh hereby certify that Ankur Khandelwal student of Masters of Business Administration – M&S at Amity Business School, Amity University Uttar Pradesh has completed the Project Report on ―Enhancing “Product Range Selling” of Coca Cola products, under my guidance.
Mrs. Shilpa Singh Assistant Professor Department Of International Business
ACKNOWLEDGEMENT Perseverance, inspiration and motivation have played a great role in the success of any venture. It would be incomplete to submit this report without acknowledging the people behind this endeavor and without whose support I wouldn’t have able to achieve this. It gives me immense pleasure to express my gratitude to everyone who shared with me their precious time and effort during the project. First of all, I thank Hindustan Coca Cola Beverages Pvt. Ltd. (HCCBPL) for granting me the permission to work with the esteem organization. I am also thankful to: Mr. Sachin Singh (Operation Excellence Manager) my industry guide, for his patience and guidance, encouragement and for sharing his expertise in writing this feasibility study. Then to Mrs. Shilpa Singh my faculty guide for giving her valuable time and precious knowledge for guidance of this project. Then to Mr.Ashwani Gurang (Capability Manager) who assisted and taught us how to make a feasibility study. I thank to all my pre sellers and the market developers of the Hindustan Coca Cola Beverages Pvt. Ltd. They guided and helped me in all possible ways they could, at every stage of the report. I would also like to thank all the Executives, distributors & staff of Hindustan Coca Cola Beverages Pvt. Ltd. Who provided us all the relevant information and their kind support on the basis of which this report and my summer intern ship has been prepared. Finally I thank my college Amity Business School, NOIDA for having given me this opportunity to put to practice, the theoretical knowledge that I imparted from the program.
Ankur Khandelwal Amity Business School
Noida – UP
TABLE OF CONTENTS
Chapter 1: Introduction 1.1 Hindustan Coca Cola Pvt. Ltd 1.2 Soft Drink Market in India 1.3 Products of Coca Cola 1.3 Significance of the Study Chapter 2: Review of the Literature 2.1 Review of researchers 2.2 Some important Literature Reviews Chapter 3: Research Methods and Procedures 3.1 Purpose of the Study 3.2 Research Design 3.3 Research Questions 3.4 Data Collection 3.5 Instruments used 3.6 Procedures 3.7 Limitations Chapter 4: Data Analysis and Findings 4.1 Review of Methodology 4.2 Results of Research Questions 4.3 Summary of the Findings Chapter 5: Suggestions & Conclusions 5.1 Suggestions 5.2 conclusions Bibliography Annexure
ABSTRACT
The research study was conducted to learn the localization strategy of global beverage company Coca Cola in terms of two of its marketing mix variables, namely, the product portfolio on offer and the distribution process. In the process detailed information was collected on products launched, sales and distribution practices followed by the company, the working style of the retail outlets that stocked and retailed Coca Cola products, and to a limited extent the psyche of the consumers. In addition the study also uncovered initiatives taken up by the top level management and the strategies they laid out to enhance the company’s market share and sales turnover. This research was conducted with the help of personal interview that tried to find the satisfaction levels of the retailers regarding the support they enjoyed in terms of the products and services offered by Hindustan Coca Cola company. In addition retailers were also queried on what more they expected from the company, and the response of consumers towards Coca Cola’s products. This project is prepared to provide a comprehensive introduction to the study of the “Product Range Selling” of Coca-Cola. A genuine attempt has made to provide a very clear understanding of the range selling done by the company, the various decision of the organization; the work done at the organization is well balanced.
The concept “Product Range Selling” can be regarded as the number of items billed at a retailer, where range signifies the variety of products and differentdifferent volumes of each product. The concept consists of the parameter “SKU- Stock Keeping Unit” which is used for measuring the Product Range billed at an outlet, where each variety and each volume is counted as 1SKU. The concept “Product Range Selling” is a sub-concept which comes under the marketing strategy of the company – GREEN ( Grow By Excellent Execution).The whole project is focused at selling wide range of company products to the retail outlets .Selling of different varieties, flavors, sizes and products of different brands owned by the company. Selling of unique SKU’s to retailers to increase the sales volume is the main objective. The process will help to leverage different brands of the company and increase the awareness among the customers. This will help in giving the customers wide range of options and alternatives. They will have good options to choose from. The process will help to survive in the market as this segment is very lucrative and has high growth potential. With the entrance of many players in the market the segment is facing cut throat competition. The main aim of the company is to sell more than 5SKU’s or 5 unique products to the retail outlets. This is strategic growth plan of the company for the long term growth and survival. The organization has been seeing continuous decline in the Product Range selling so at the time of giving this project the objective of the company was to visit each retailer and find the root cause of the problem and removing those barriers. Recommendations and suggestions are intended to be taken from the retailers and have been worked out. The project also intended towards benefit of retailers as by keeping more variety and range of products, the sales volume will increase leading to enhanced profits and better ROI. This is a win-win situation for the retail outlets and the company. This research involved a study, which was descriptive in nature. It basically aims at gathering the data about range of the products that has been billed in each
billing of each outlet. Retailers were contacted directly and personal interviews were taken at the retailer counters.
CHAPTER 1 INTRODUCTION
1.1 Hindustan Coca Cola Beverages Pvt. Ltd: Hindustan Coca-Cola Beverages Private Limited (HCCB) is the company owned Bottling operation of The Coca-Cola Company in India. The Company is engaged in production, manufacture, bottling, sale, distribution, and supply of non-alcoholic ready to drink beverages including sparkling beverages, packaged drinking water, and fruit based drinks under various trademarks across designated territories pan India. The
company-owned Bottling arm of the Indian Operations-
Hindustan Coca-
Cola Beverages Private Limited is responsible for the manufacture, sale and distribution of beverages across the country. 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 Regulation
Act (FERA)
under
which
the Foreign governed
the operations of foreign companies in India. Coca-Calare-entered
the Indian
market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. In the new liberalized and deregulated environment in1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling
armor
the
Coca-Cola
Company.
However,
innumerous commitments and stipulations which the
this
Company
was
based
agreed
to
implement (on the basis of the rules and regulations of the Indian government) in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002.
1.2 Soft drink market in India:
MAJOR PARTICIPANTS IN SOFTDRINK INDUSTRY
The major participants involved in the production and distribution of soft drinks are: •
Concentrated syrup producers,
•
Bottlers and
•
Retail channel.
Concentrate producers manufacture basic soft drink flavors and retail channel refers to business location that tells or serves the products directly to consumers. Lots of sale depends upon the strength of merchandizing done at the point of sale. THE GLOBAL SOFT DRINK MARKET AND INDIA’S POSITION
The global soft drinks market grew at a compound annual growth rate (CAGR) of 3.5% from 2005 to 2009 and was valued at $494.5 billion in 2009. New product launches in the global soft drinks market increased by 8.59% in 2009. The US was the top country by retail sales as well as by number of new product launches, followed by Japan which ranked second in both categories. Globally, India ranked 25th in terms of retail sales and 13th in terms of the number of new product launches in the soft drinks market in 2009.
India in 2012 is one of the most potential markets, with population of around 1.2 billion people. Population and potential market are two major reasons for major multinational companies to enter in India. They feel that a huge population coupled with low consumption and low budget (due to low economy) can only lead to an increase in the soft drink market.
In spite of India’s huge population and the fact that around 47% of the population is composed of persons below 30 years of age, the per-capita consumption of soft drinks in India remains very low, at approximately at 5.2 liters against the world average of nearly 85.2 liters. Another increase and boom in the sale of soft drinks in the scorching heat and the climate of India, which is together, have contributed to a 30% growth in the soft drinks industry till 2010. If the demand continues growing at the same rate, within two years the volume could touch 2 billion cases.
All these factors are the reasons for the entry of two big manufacturers of the soft drink industry to enter the Indian market. These two giants Pepsi and Coca-Cola, themselves share 76% of the soft drink market share on the basis of records of 2009.Rest is shared by Cadbury’s Schweppes, Parle, RC Cola and other soft drink brands.
In spite of India’s huge population and the fact that around 47% of the population is composed of persons below 30 years of age, the per-capita consumption of soft drinks in India remains very low, at approximately at 5.2 liters against the world average of nearly 85.22 liters.
Coca-Cola remains the market leader in the carbonates category with a annual sales figure growth of more than 69.2% in the Indian market, followed by Pepsi with around 20.7% till the year 2012. In the bottled water category, Parle’s, Bisleri and Kinley from Coca-Cola are the leading players. The packaged juices market in India continues to be dominated by Maaza and Frooti, followed by brands such as Slice, Tropicana and Real which have registered good growths in their market shares in the past few years. Red Bull with its strong dominance of the energy drinks’ category, which is the largest segment in the functional drinks category, is the market leader in the functional drinks market.
1.3 Products of Coca Cola:
(I)
COKE:-It is a carbonated drink. It is available in different volumes in
market like: •
200 ml glass bottle
•
350 ml glass bottle
•
600 ml pet bottle
•
2 litre pet bottle
•
330ml can
•
1.25 liter
(ii) THUMS UP:- It’s a very strong carbonated cola flavored drink as compared
to others. It was bought from Parle Agro by Coca-Cola in 1992. It is available in different volumes in market like: •
200 ml glass bottle
•
300 ml glass bottle
•
600 ml pet bottle
•
2 litre pet bottle
•
330ml can
•
1.25 liter
(iii)FANTA:- It is an orange flavored carbonated soft-drink. In India Fantail
entered as a substitute for the then popular soft-drink Gold-Spot. When Coca-
Cola re-entered the Indian Marketing 1993, it bought Gold Spot from Parle and withdrew it from the market in order to make space for Fantail. It is available in different volumes in market. •
200 ml glass bottle
•
300 ml glass bottle
•
600 ml pet bottle
•
2 litre pet bottle
•
1.25 liter
(iv)LIMCA:- Lima is a lime and lemon flavored carbonated soft-drink made
primarily in India. In 1992 Coca-cola bought local soft drinks brand from Parle Agro including Lima. It is available in market in following packs of quantizes: •
200 ml glass bottle
•
300 ml glass bottle
•
600 ml pet bottle
•
2 litre pet bottle
•
330ml can
•
1.25 liter
(iv) SPRITE:- It is a transparent drink of lime flavor caffeine free soft-drink. It
is packed in green colored bottle. It is available in market in following packing: •
200 ml glass bottle
•
300 ml glass bottle
•
600 ml pet bottle
•
2 litre pet bottle
•
330 ml can
•
2 litre pet bottle
•
1.25 liter
•
330ml can
(v)MINUTE MAID:- It comes in the juice category. It comes in Pulpy Orange,
Mango, Nimbu Fresh and Apple flavors. It is only available in PET bottle. •
400ml PET bottle
•
1 Ltr. PET Bottle
(vi) MAAZA :- It is a Mango flavored drink. •
200ml glass bottle
•
200ml tetra pack
•
600ml pet
•
1.2 Lt. pet
(viii) KINLEY SODA :-
It is colorless & available in market in 300 ml glass bottle and in 600ml PET bottle in the market.
(ix) KINLEY WATER:-
It is mineral water available in following volumes in market:
•
500 ml pet bottle
•
1 lt. pet bottle
•
2 lt. pet bottle
1.4 Significance of the study:
The significance of the study was: •
Finding and working on the problems that the company has been facing in its distribution which has been leading to decline in the sale of the company.
•
Learning market condition in which companies are surviving and facing competition.
•
Knowing about the distribution pattern that the company has been following.
•
Studying the complete chain how the final product reaches the end customer.
•
What are the problems that the retail outlets of the company are facing and how they can be resolved.
•
Knowing about the perception of the retailers about the company.
•
Study various factors which directly or indirectly influence the sale of the company
•
Identifying the needs and wants of both the retailers and dealers and how well are they are being managed by the company’s anxious authorities.
•
Find out various reasons which are creating stumbling block in market expansion.
•
Identifying the wakefulness of the brand and the company’s products in the market.
•
Finding out the gratification level of customers and problems faced while doing business with Coke.
CHAPTER 2 REVIEW OF THE LITERATURE
LITERATURE REVIEW REVIEWS OF RESEARCHERS:
In case study presented by Adam Brown of Coca-Cola, he stated, “…back in the day you would have heard me say, our home page isn’t just coke.com, it’s google.com google.com … now… it’s google.com, google.com, technorati.com, technorati.com, facebook.com… facebook.com…”. ”. He also stated in his presentation that Coca-Cola’s strategy is to Review, Record, Respond, and Redirect. (Brown, 2009)
Coca-Cola has done an amazing job at not only reaching out to the “new media era” audience, but also the people who followed them in the past. Coca-Cola has an official blog called Coca-Cola Conversations which is written and updated by a man by the name of Phil Mooney, who has served as the historian/archivist for Coca-C Coca-Cola ola for the last 30 years. years. The blog contains contains a wide wide variet variety y of topics, topics, ranging from our role in pop culture to brand history to Coke collectibles. (Mooney,2009) (Mooney,2009).. It reaches out to a wide variety variety of audiences, audiences, and encourages people to write back and give their input, something Coke probably couldn’t have gotten this far without. Part of the Action Plan for Harnessing the Power of the New Rules states that you should define your organizations goals first, then based on the goals decide whether or not you want to provide the content for free and without registration. It is also stated that you should write for your audience using examples and stories, and of course make it it interesting. (Scott, 2007).
SOME OF THE IMPORTANT LITERATURE REVIEWS:
1) Cons Consum umer er Pref Prefer eren ence ce:: A stud study y of fact factor orss resp respon onsi sibl blee for for bran brand d preference in FMCG sector”
The purpose of this paper is the study of factors responsible for brand pr ef er e n ce in F MC G pr od u c ts , in c re as in g co mp et i ti on , m or e du e to globalization, is motivating many companies to base their strategies
a lm lm os os t e nt nt ir ir el el y o n b ui ui ld ld in in g b ra ra nd nd s. s. B ra ra nd nd p re re fe fe re re nc nc e m ea ea ns ns t o compare the different brands and opt for the most preferred brand. This brand preference is influenced by various factors. According to this study many factors were find out for preferring a brand like Brand persona Brand constancy Brand loftiness Brand value. In the identification of factors affecting the brand preference, it was concluded that brand persona is the most effective factor factor that that affects affects the the brand prefer preference ence.. This brand brand persona persona de als al s with wi th the th e pe rs on a li ty a sp e ct s o r th e ex te rn al at tr ib ut es o f b ra nd , th us it c an b e said that consumer prefer any brand by looking at the external attributes of a brand. JOURNAL OF IMS VOL 5 NO.1, JAN-JUNE 2008
2) Taste or health: A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and he al th co ns id er at io ns o n cons onsum umeer lik liking and purchase int intent of col cola drinks drinks.. Eight Eight types types of commer commercia ciall cola cola drinks drinks were were evaluat evaluated ed by 305 adult adult consumers who also completed a brief questionnaire on food habits. Data were analyz analyzed ed using using factor factor analysi analysis. s. Result Resultss reveal revealed ed that that purcha purchase se intent intent of cola cola drinks drinks was strongl strongly y relate related d to degree degree of likin liking g and to severa severall key sensory sensory attributes including saltiness, saltiness, drinks flavor and greasiness. greasiness. These variabl variables es emerged emerged as the first first factor factor in the the analy analysis sis,, sugg suggest esting ing that that consumers perceive these characteristics as being most important in their choice choice of cola cola drinks drinks.. Factor Factor 2 descri described bed a health health dimen dimensio sion n and w a s r e l a t e d t o r es e s po p o n de d e n ts t s ' a tt t t it i t ud u d e s t ow o w a rd r d f at a t i n t h e d ie i e t. t . F a ct c t or or 3 co mp ri se d tw o remaini remaining ng sensory sensory attribu attributes tes (color (color and crunchi crunchiness ness), ), which apparently were of minor importance importance to the respondents. These data suggest that in spite of current concern ab out redu reduci cing ng diet dietar ary y fat, at, health remains secondary to taste in the selection of cola drinks for consumers in this population.
SOURCE-BEVERLY J. TIPPER AND AMY C. TRAIL JOURNAL OF FOOD SCIENCE ANDTECHNOLOGY, 15 SEPTEMBER 1998
. 3) Paired preference tests using placebo pairs and different responses options for Cola drinks and juices.
ABSTRACT Preference tests were performed for varieties of cola drinks, orange juices and using three response protocols: the traditional paired preference test with the "no preference" option, a 9-point hedonic scale and a 6-point hybrid hedonic/purchase intent scale. The different stimuli to be assessed were presented in pairs, but putatively identical stimuli were also pr es en te d as a " pl ac eb o" p ai r. P er fo rm an ce o n t he p la ce bo p ai r w it h i de nt ic al stim uli p r o v i d e d a m e a s u r e o f t h e h i d d e n d e m a n d c h a r a c t e r i s t i cs of the test protocol. The presentation of the different pairs provided a measure of preference of the consumers and final users accompanied by such hidden demand effects. Comparison between the two allowed a b e tt e r me a s u r e o f preference per se. The order of presentation of the identical and different pairs did show occasional slight evidence of contrast effects. For the placebo "identical" pairs, a majority of consumers reported false preferences. Yet, the effects tended to be slight. The 6-point hedonic/purchase intent scale exhibited the fewest false preferences in the placebo condition, and this was bec au se of its fe we r ca te go ri es ra th er th an any cog nitive strate gy chan ge elici ted by its different labels.
SOURCE- DAVIS WOMAN’S JOURNAL OF FOOD SCIENCE AND TECHNOLOGY, JULY 31, 2007 CONCLUSION:
Coca Cola being a big brand name in the beverage industry has been continuously growing its business in the whole world. The company is really innovative and customer oriented and is very well known for its reputation amongst the people. The new products launched by the company like series of Minute maid are brought seeming the demand and culture of the people in India so this shows that the company is even culture oriented. It has been highly preferred by the customer due to its taste and quality it offers in the products. Thus it covers the major market of the country, India. The variety of choices available almost covers all the taste that public usually demand. Coca Cola has been always upgrading its product portfolio as per the changes in the beverage industry and is always giving tuff competition to the major players like PepsiCo, Parle, etc. Not only this, Coca Cola has been doing up to date promotion and every possible action to reach customer’s heart. They have entered facebook, google, twitter, and many other social networking site to become friendly to the users and know about their preference for the soft drinks.
CHAPTER 3 RESEARCH METHODOS AND PROCEDURES
3.1: Purpose of the Research:
RESEARCH OBJECTIVES:
•
To gain an insight about the perception of the retailers about the company.
•
To study various factors which directly or indirectly influence the sale of the company
•
To identify the needs and wants of both the retailers and dealers and how well are they being managed by the company’s higher authorities.
•
To find out various reasons which are creating stumbling block in market expansion of company’s products
•
To identify the wakefulness of the brand and the company’s products in the market.
•
To find out the gratification level of retailers and problems faced while doing business with Coke.
3.2 Type of research: Exploratory and descriptive Research
The research design adopted is the multi-cross sectional design as my research study involved the study of more than two respondents and information through questionnaire has been collected from each sample only once. Even a part of
causal research will also be employed to find out the cause and effect of the increase in the SKU billings on the retailer’s sales and company’s product range .
3.3 Method of data collection
There are two types of data collection method – Primary data and Secondary data.
1. Primary Data:
This data is original in nature and is generated from results of personal interviews with the retailers. •
General observation method-The retailers were observed to have an insight about the mindset and preference for a particular brand.
•
Personal interaction method-I made interactions with some retailers during market survey, who want to give some extra information other than questionnaire and who were busy and not ready to fill the questionnaire. This was conducted without the help of any questionnaire. The objective was to draw a general understanding about their problems, performance o f the distributer, their preferences and other useful information. This technique helped to clear doubts arising due to observation method.
2. Secondary Data:
Some data was acquired from existing sources of information which were accessed due to availability of various other forms of information and data. These data served as the secondary data to me. Sources for these data are the company’s
websites,
journals, publications and
articles from industry
experts/professionals, previous market reports and some details about how they follow GREEN norms which were provided by the company.
3.4 Data collection
This research involved a study, which was descriptive in nature. It basically aims at gathering the data about the type of outlet, size of its purchase, 5SKU billings, etc each outlet. I have contacted to retailers directly and taken the personal interviews at the retailer counters. This has allowed me greater flexibility in capturing the insights of the retailers.
Sample design
Sampling unit: - The retailer of grocery shop, general store, eats and drinking
stores was selected.
Sample Size:- The sample size taken is of 100 respondents for this study.
Sampling technique: -Normal Convenience and judgmental sampling technique
was followed.
Sampling method:- Data were collected from the personal interviews with the
retailers.
3.5 Instruments Used:•
•
Questionnaire :
Likert scale
Structured and un structure questions.
Analysis ( SPSS and MS EXCEL)
Frequency Distribution
Cross tabs
Case Summary
Distribution Graphs
Distribution tables
3.6 Procedures:-
The following procedure was followed for the purpose of research: 1) Research title was decided and parameters to be measure were set.(idea generation)
2) The basic frame work for the activities to be done was made.( planning) 3) The project activities were then equally divided into the members of the group, i.e. every body was assigned different markets of NOIDA and GHAZIABAD. (Staffing) 4) Questionnaire was made on the basis of the parameters given by the company. 5) Each member was allotted a market and a pre seller where he has to collect the information by personally interviewing the retailer and then getting the questionnaire filled by the retailer. (data collection) 6) The data which was collected was feeded in the excel sheet on the daily basis. ( Data feeding ) The process continued till whole week……. Every week a new market was given and research was done. 7) The final data of the whole research was then coded and entered into the SPSS and analysis was done. 8) Results were drawn and on the basis of them interpretations were made. 3.7 Limitations:-
Though this study was taken up with sincere efforts to accomplish the objectives, there were certain factors which created hurdles in accomplishing the work. These factors are:-
1. Some retailers were having very non-cooperative behavior at the time of data collection from them
2. The research was depending on the information provided by the respondents (retailers).It may be insufficient.
3. The time frame for this research is short to cover the whole market of NOIDA and GHAZIABAD.
4. Limited knowledge of the addresses of outlets.
5. Due to the financial and time constraints the study wasn’t able to include more retailers.
6. To convince the retailer for a proper interviewing process was also difficult.
7. Retailers some time give wrong data.
8. The reluctance on the part of the retailers was also major setback.
9. The analysis of project was based on observations and interpretation on the basis of sample survey.
10. A busy schedule of dealers/retailers had made my collation of information very difficult.
CHAPTER 6 DATA ANALYSIS AND FINDINGS
6.3 DETAILED ANALYSIS: 1) Number of Outlets Visited Frequency:-
The research was based on pre seller’s (Market developer) permanent journey plan on the basis of which he places orders and makes bill. This is the targeted destination where he has to visit and take orders. outlet visited Frequency
Percent
Valid Percent
Cumulative Percent
no Valid
174
14.0
14.0
14.0
yes
1067
86.0
86.0
100.0
Total
1241
100.0
100.0
INTERPRETATION:
14% were the outlets which were not visited but still orders were placed on their names which means that there has been illegal plotting of orders 2) 5SKU Billing Frequencies:- ( Stock Keeping Unit) On the basis of the range in the bill has been measured. Company has set the criteria to at least place 5SKU in a bill at the outlets.
5SKU BILLED Frequency
Percent
Valid Percent
Cumulative Percent
Valid
NO
520
41.9
41.9
41.9
YES
721
58.1
58.1
100.0
Total
1241
100.0
100.0
INTERPRETATION: There were still 42% of the outlets where 5SKU were not billed reasons were knotted down for NON billing. So this will act as a new target for the company to work on next time.
3) Reasons of Non- 5SKU billings Frequencies
REASONS FOR NON 5SKU BILLING Frequency
Percent
Valid Percent
Cumulat ive Percent
5sku billed
727
58.6
58.6
58.6
TEMPORARY CLOSE
107
8.6
8.6
67.2
97
7.8
7.8
75.0
7
.6
.6
75.6
COOLER NOT WORKING
12
1.0
1.0
76.6
OWNER NOT MET
17
1.4
1.4
77.9
STOCK FULL
142
11.4
11.4
89.4
STOCK OUT
51
4.1
4.1
93.5
2
.2
.2
93.6
NOT IN BEAT PLAN
38
3.1
3.1
96.7
OTHERS
41
3.3
3.3
100.0
1241
100.0
100.0
PERMANENTLY CLOSE NO COOLER
Valid
LOW BUDGET
Total
INTERPRETATION:
1) Amongst those outlets where 5SKU was not billed the major reasons were they were temporarily closed, they were having full stock and there was stock out of products that were asked to order. 2) Even there were many outlets which are permanently closed but were still displayed in the permanent journey plans of pre sellers.
4) TYPE OF DRINKS RETAILER IS SELLING FREQUENCY: what kind of drink are you selling? Frequency
Percent
Valid Percent
Cumulative Percent
cold drink Valid
85
36.2
36.2
36.2
all
150
63.8
63.8
100.0
Total
235
100.0
100.0
INTERPRETATION: 36% of the retailers only sell carbonated drinks while 64% of the retailers are
those who sell all type of drinks which means demand for juices is also good in the market.
5) FREQUENCIES OF THE BRANDS THAT RETAILERS KEEP IN STOCK; PEPSICO, DABUR, PARLE AND OTHERS BRAND ALONG WITH THE COCA COCA PRODUCTS. FREQUENCY TABLE
pepsi co Frequency
Percent
Valid Percent
Cumulative Percent
no Valid
90
38.3
38.3
38.3
yes
145
61.7
61.7
100.0
Total
235
100.0
100.0
parle Frequency
Percent
Valid Percent
Cumulative Percent
Valid
no
100
42.6
42.6
42.6
yes
135
57.4
57.4
100.0
Total
235
100.0
100.0
dabur Frequency
Percent
Valid Percent
Cumulative Percent
Valid
no
170
72.3
72.3
72.3
yes
65
27.7
27.7
100.0
235
100.0
100.0
Total
Other Frequency
Percent
Valid Percent
Cumulative Percent
Valid
no
155
66.0
66.0
66.0
yes
80
34.0
34.0
100.0
235
100.0
100.0
Total
Bar Chart
INTERPRETATION:
The analysis shows that amongst retail outlet dealers of Coca cola, 61% of the dealers also keeps pepsico products, 60% also keeps parle product, 27% keeps dabur products and 34% keeps other brands too which is giving big competition to the company and even more choices to the consumers this is leading to flow in the bucket of the Coca Cola Sales.
6) Frequency of factors that affects customer preference while buying: What attracts customers while buying the Coca Cola products? Frequency
Percent
Valid Percent
Cumulative Percent
packaging
45
19.1
19.1
19.1
pricing
40
17.0
17.0
36.2
taste
60
25.5
25.5
61.7
display
80
34.0
34.0
95.7
any other
10
4.3
4.3
100.0
235
100.0
100.0
Valid
Total
INTERPRETATION:
Analysis shows that display of the product is the most important feature that makes customer’s preference for purchase then followed by taste, packaging and then pricing and least by others.
7) Frequency of the way retailers purchase the stock: How do you purchase the stock of coca cola products? Frequency
Percent
Valid Percent
Cumulative Percent
Through pre sellers (by order)
Valid
110
46.8
46.8
46.8
Through RSU
52
22.1
22.1
68.9
Through Fat Dealers
43
18.3
18.3
87.2
30
12.8
12.8
100.0
235
100.0
100.0
Through pre sellers and fat dealers Total
INTERPRETATION: 46% of the retailers purchase the stock from the company process i.e. through pre sellers. Rest all the purchase made is illegal according to the company. This is very big reason for uncounted sale of the company and illegal plotting of the stocks and orders in the market by the pre sellers.
8) Frequency of the most frequent buyer: Who are the most frequent buyers of coca products? Frequency
Percent
Valid Percent
Cumulative Percent
Less than 15 years 15 – 45 years
69
29.4
29.4
29.4
154
65.5
65.5
94.9
12
5.1
5.1
100.0
235
100.0
100.0
Valid Above 45 years Total
INTERPRETATION:The maximum number of purchase is made by the adults then followed by children and old agers. This shows that company can focus on the priority basis this is even one of the important reason for thumbs up being on top of most selling products.
9) Frequency of retailers view about the various services offered: Frequency Table opinion about supply service Frequency
Percent
Valid Percent
Cumulative Percent
excellent
20
8.5
8.5
8.5
Very good
40
17.0
17.0
25.5
good
75
31.9
31.9
57.4
average
60
25.5
25.5
83.0
poor
40
17.0
17.0
100.0
Total
235
100.0
100.0
Valid
opinion about variety of products Frequency excellent Valid
Valid Percent
Cumulative Percent
230
97.9
97.9
97.9
5
2.1
2.1
100.0
235
100.0
100.0
Very good Total
Percent
opinion about advertisement Frequency excellent
Valid Percent
Cumulative Percent
135
57.4
57.4
57.4
90
38.3
38.3
95.7
good
5
2.1
2.1
97.9
average
5
2.1
2.1
100.0
235
100.0
100.0
Very good Valid
Percent
Total
opinion about After sale support service Frequency
Valid
Percent
Valid Percent
Cumulative Percent
Very good
25
10.6
10.6
10.6
good
70
29.8
29.8
40.4
average
70
29.8
29.8
70.2
poor
70
29.8
29.8
100.0
Total
235
100.0
100.0
opinion about orders rotation service Frequency
Percent
Valid Percent
Cumulative Percent
excellent
15
6.4
6.4
6.4
Very good
20
8.5
8.5
14.9
100
42.6
42.6
57.4
average
70
29.8
29.8
87.2
poor
30
12.8
12.8
100.0
Total
235
100.0
100.0
good Valid
opinion about sales man behaviour Frequency excellent
Percent
Valid Percent
Cumulative Percent
25
10.6
10.6
10.6
100
42.6
42.6
53.2
good
55
23.4
23.4
76.6
average
30
12.8
12.8
89.4
poor
25
10.6
10.6
100.0
Total
235
100.0
100.0
Very good Valid
opinion about complain handling service Frequency Valid
Percent
Valid Percent
Cumulative Percent
excellent
15
6.4
6.4
6.4
Very good
25
10.6
10.6
17.0
good
55
23.4
23.4
40.4
105
44.7
44.7
85.1
poor
35
14.9
14.9
100.0
Total
235
100.0
100.0
average
opinion about cooler service Frequency
Percent
Valid Percent
Cumulative Percent
excellent
50
21.3
21.3
21.3
Very good
75
31.9
31.9
53.2
good
25
10.6
10.6
63.8
average
25
10.6
10.6
74.5
poor
60
25.5
25.5
100.0
Total
235
100.0
100.0
Valid
opinion about schemes offered Frequency
Percent
Valid Percent
Cumulative Percent
excellent
15
6.4
6.4
6.4
Very good
55
23.4
23.4
29.8
good
70
29.8
29.8
59.6
average
80
34.0
34.0
93.6
poor
15
6.4
6.4
100.0
Total
235
100.0
100.0
Valid
opinion about prices of products Frequency Valid
excellent Very good good average
Percent
Valid Percent
Cumulative Percent
5
2.1
2.1
2.1
65
27.7
27.7
29.8
110
46.8
46.8
76.6
20
8.5
8.5
85.1
poor
35
14.9
14.9
Total
235
100.0
100.0
100.0
opinion about packaging Frequency excellent
Percent
Valid Percent
Cumulative Percent
130
55.3
55.3
55.3
Very good
90
38.3
38.3
93.6
good
15
6.4
6.4
100.0
Total
235
100.0
100.0
Valid
Bar Chart
INTERPRETATION:-
1) Supply: Retailers are not much satisfied with the supply services of the
company. 31% of the retailers gave their opinion as average. 2) Advertising: Retailers were very much satisfied. 3) After Sale Service: According to retailers it was just ok not too good not
too bad. 4) Order Rotation Service: According to retailers it was good.
5) Opinion about Sales Man Behavior: Retailers were very much satisfied
with the sales man. But this can be biased too as the sales man was always there while getting the questionnaire filled. 6) Complain Handling Service: Unsatisfactory / Average 7) Cooler Service: Some retailers were highly satisfied but some were very
much unsatisfied. 8) Schemes Offered: It was good. Can be biased because retailers always
want high profit margins. 9) Prices of products: It was good.
10) Packaging: Retailers were very much satisfied.
10) Frequency of the various parameters on which retailers’ performances are measured:
Frequency Table
Purity Frequency Valid
Excellent Very good Good
27 24 42
Percent 19.1 17.0 29.8
Valid Percent
Cumulative
19.1 17.0 29.8
Percent 19.1 36.2 66.0
Average Poor Total
15 33 141
10.6 23.4 100.0
10.6 23.4 100.0
76.6 100.0
Frequency
Percent
Valid Percent
Cumulative
Supply
Valid
Excellent 18 Very good 51 Good 36 Average 15 Poor 21 Total 141
12.8 36.2 25.5 10.6 14.9 100.0
Percent 12.8 48.9 74.5 85.1 100.0
12.8 36.2 25.5 10.6 14.9 100.0
Stock availability Frequency
Percent
Valid Percent
Cumulative Percent
excellent
36
25.5
25.5
25.5
Very good
24
17.0
17.0
42.6
good
33
23.4
23.4
66.0
average
12
8.5
8.5
74.5
poor
36
25.5
25.5
100.0
Total
141
100.0
100.0
Valid
Cooler availability Frequency Valid
Percent
Valid Percent
Cumulative Percent
excellent
36
25.5
25.5
25.5
Very good
24
17.0
17.0
42.6
good
18
12.8
12.8
55.3
average
18
12.8
12.8
68.1
poor
45
31.9
31.9
100.0
Total
141
100.0
100.0
Demand Frequency
Percent
Valid Percent
Cumulative Percent
excellent
54
38.3
38.3
38.3
Very good
36
25.5
25.5
63.8
9
6.4
6.4
70.2
average
15
10.6
10.6
80.9
poor
27
19.1
19.1
100.0
Total
141
100.0
100.0
good Valid
Display Frequency excellent
Percent
Valid Percent
Cumulative Percent
45
31.9
31.9
31.9
9
6.4
6.4
38.3
good
21
14.9
14.9
53.2
average
24
17.0
17.0
70.2
poor
42
29.8
29.8
100.0
Total
141
100.0
100.0
Very good Valid
Purchasing power Frequency Valid
Percent
Valid Percent
Cumulative Percent
excellent
60
42.6
42.6
42.6
Very good
36
25.5
25.5
68.1
good
9
6.4
6.4
74.5
average
3
2.1
2.1
76.6
33
23.4
23.4
100.0
poor
Total
141
100.0
100.0
Cooling Frequency
Percent
Valid Percent
Cumulative Percent
excellent
39
27.7
27.7
27.7
Very good
24
17.0
17.0
44.7
good
18
12.8
12.8
57.4
6
4.3
4.3
61.7
poor
54
38.3
38.3
100.0
Total
141
100.0
100.0
Valid average
Sales Frequency
Percent
Valid Percent
Cumulative Percent
excellent
51
36.2
36.2
36.2
Very good
27
19.1
19.1
55.3
Good
15
10.6
10.6
66.0
12
8.5
8.5
74.5
Poor
36
25.5
25.5
100.0
Total
141
100.0
100.0
Valid Average
Ordering cycle Frequency
Percent
Valid Percent
Cumulative Percent
excellent
42
29.8
29.8
29.8
Very good
15
10.6
10.6
40.4
Good
33
23.4
23.4
63.8
15
10.6
10.6
74.5
Poor
36
25.5
25.5
100.0
Total
141
100.0
100.0
Valid Average
Loyalty Frequency
Percent
Valid Percent
Cumulative Percent
excellent
48
34.0
34.0
34.0
Very good
15
10.6
10.6
44.7
Good
27
19.1
19.1
63.8
21
14.9
14.9
78.7
Poor
30
21.3
21.3
100.0
Total
141
100.0
100.0
Valid Average
Location Frequency
Valid
Percent
Valid Percent
Cumulative Percent
excellent
84
59.6
59.6
59.6
Very good
24
17.0
17.0
76.6
good
21
14.9
14.9
91.5
average
12
8.5
8.5
100.0
141
100.0
100.0
Total
Attitude Frequency
Percent
Valid Percent
Cumulative Percent
excellent
24
17.0
17.0
17.0
Very good
18
12.8
12.8
29.8
good
45
31.9
31.9
61.7
average
27
19.1
19.1
80.9
poor
27
19.1
19.1
100.0
Total
141
100.0
100.0
Valid
Pie Charts of the above mentioned tables:
INTERPRETATION:1) Purity: Purity was good not too bad not too good. 2) Supply: It was good. 3) Stock availability: a variety of retailers were there this was dependent of
the purchasing power of the retailer some were good, some were excellent and even some were very poor. 4) Cooler Availability: It was very poor. Lots many retailers with good
locations doesn’t have coolers. 5) Demand: Demand for coca cola products was excellent. 6) Display: both varieties of responses poor and excellent. 7) Purchasing Power: Most of the retailers of Coca Cola are having
excellent purchasing power. 8) Cooling: Poor cooling due to non working and damaged coolers. 9) Ordering cycle: Retailers were having very good ordering cycle, but as an
exception that RSU purchase is not done. 10) Sales: Maximum retailers are having high volume sales.(Excellent) 11) Loyalty: Retailers of Coca Cola are very much loyal to the company. 12) Location: Location of the most 60% of the retailers is excellent. 13) Attitude: 32% of the retailers were having good attitude and most of the
remaining were having average and poor attitude towards company.
CHAPTER 7 SUGGESTIONS AND CONCLUSIONS
7.1: SUGGESTIONS
The company should measure retailers’ satisfaction regularly.
Company can increase the sales if it will concentrate more on retailers, their suggestions or complaints about service and product so that necessary actions can be taken.
Company should take actions to stop RSU (Ready Stock Unit) purchase by the retailers.
Company should have a complain number for retailers where they can register their complains. This will increase transparency between company and its retailers.
More knowledge about the company strategies should be given to the pre sellers so that they can work on it in better way.
Company should take actions for improving the supply chains amongst the reasons for non 5SKU billing reasons “stock out” is also a major reason.
Review meeting should be often held so that the working pattern of the sales people can be checked and improved if needed.
Company pre sellers should take orders by visiting retailers and should make a long-term liaison with retailers so that they can push the product.
Pre sellers’ loyalty check should be done on monthly basis so that they have the fear to visit the maximum number of retailers and can not be able to plot orders in unauthorized manner.
Since brand value of Coke & expectation of retailers from this brand is high, as the brand image shows their qualities supervene so the company should also take feedback time to time. By this they can maintain their brand loyalty in their customers.
Distributers should be convinced to pass the incentives to the retailers so that they are motivated to promote this brand.
Increase the number of dealers and retailers as this will help in making high sales volume.
Cash discount should be given & it should be competitive and luring.
Try to maintain the good image of the monopoly outlets in market by developing the image of the outlets i.e. by providing extra discounts, by glow
boards,
signboards, and point of sale material (P.O.S.M) and by
providing good quality services. By this the monopoly of the retailer will continue and it will promote other retailers to adopt Coke monopoly.
Company should also concentrate on small outlets so that there sales can increase.
Company representatives should search new areas for increase in sales.
In winter Season company should give more discount & schemes to the retailers so they sell more our product.
Company must make aggressive & new strategies to fight with major competitors and local cold drinks brands.
The company should work on retailers’ complaints regarding to the Visi cooler.
Company should give proper schemes to the outlet and must watch that retailers are been given the same scheme which company has declared.
The refrigerator purity should be given the priority.
Overall services should be improved for getting more sales and to continue to be the market leader.
Company should take the problem of “cut off rates seriously”.
Coca-Cola should be written on florescent boards displaying location and distances on road.
Illegal distribution done by some distributors should be minimized.
7.2: CONCLUSION
Everything in this world is made to utilize properly but it should be reach at the proper person or to the proper utilized areas. Otherwise the value added to those things became in vein. As there is a proverb:-
“Far from eye, far from heart” Thus marketing plays very important role in achieving the objectives of the company. Undoubtedly, value utility is created by the manufacture of product or service but time and place utilities are created by marketing role. According to Ducker, “Both the market and the distribution channels are often more crucial than the product”. They are primary, the product is secondary. In
an
economy
like
that
of
India,
where
can lead to disproportion, distortion in prices, dependable
marginal and
shortages efficient
distribution system is very much essential. The distribution system creates value added to all most all products. All from the above study not withstanding its restricting efforts Pepsi is still far away with its great competitor like Coca Cola. The only source of revenue with the companies is the sales its only sales which shows the growth of the organization so they should always make new creative and innovative strategies for better sales. Market conditions are truly different from what we have studies in books so in order to survive in such kind of competitions company should focus more on its distribution system because it is a saying in the market that “ jo dikhta hai wahi bikta hai”- So proper and timely availability of the product is very necessary for its sale.
BIBLIOGRAPHY:
REFRENCES:
BOOKS:
AUTHOR:
MARKETING RESEARCH
NARESH MALHOTRA
MARKETING MANAGEMENT
PHILIP KOTLER
RESEARCH METHEDOLOGY
C.R.KOTHARI
Websites: www.quickmba.com www.indiacom.com www.yellowpages.com www.coca-colaindia.com
ANNEXURE 1
QUESTIONAIRE FOR RETAILERS The objective of this survey is to Study the reasons of low green score with special reference to preference of stock keeping units (SKU) in Coca Cola products by retailers in Ghaziabad city.
We request you to attempt all the questions so as to help us arrive at authentic results. The data collected herein will be purely u sed for academic purpose. Your cooperation will be highly appreciated. Amity University, Noida
QUESTIONNAIRE Please express your frank opinion on all the following q u e s t i o n s c o n c e r n i n g y o u r preference of brand in cold drinks by checking the most appropriate alternative(s) and others as well
1. What kind of drink are you selling?
Cold drink
Juice
All
2. What brand of drinks you stock at your outlet?
Coca Cola
PepsiCo
Parle
Dabur
Any other ______________
3. How long you have been selling coke in your outlet?
Since last 1 month
Since last 1 year
Since last 2 years
Since last 3 years
Over 3 years
4. What attracts customers while buying the Coca Cola products?
Packaging
Pricing
Taste
Display
Any other____________
5. How do you purchase the stock of coca cola products.
Through pre sellers (by order)
Through RSU
Through Fat Dealers
Through pre sellers and fat dealers
6. Who are the frequent buyers?
Children
Adults
Any other ____________
6. What is your opinion about the Following services offered by Coca Cola to its retailers on the following factors? (Please mark :: 1=Excellent, 2=Very Good, 3=Good, 4=Average and 5=Poor for each feature.) Features
Excellent (1)
Very Good (2)
Good (3)
Average (4)
Poor (5)
Supply Variety of products Advertisement After sale support Orders rotation Sales man behavior Complain handling Cooler service Schemes offered Rates Packaging
7. Your suggestion about how to increase to increase sales of coke? ______________________________________________________________________________ ______________________________________________________________________________ ___________________________________________________________________
Please fill the following informational details.
1. NAME
:
______________________________________
2. GENDER
:
______________________________________
3. AGE (Please Tick):
Under 20 Between 20-29 Between 30-39 Between 40-49 Between 50-60 Over 60
4. Annual income (Please Tick) :
Under 1,50,000 Between 1,50,000- 2,50,000 Over 2,50,000 -: Thanks for your participation:-
6.2 OTHER FINDINGS:
Official Use Measuring Performance
1). Parameters for measurement:Features
Excellent (1)
Very Good (2)
Good (3)
Purity Supply Stock availability Cooler availability Demand Display Purchasing power Cooling Sales Location Loyalty Attitude Ordering cycle
2). Products Available:-
Average (4)
Poor (5)
Products\volume
Thumps up Coke Fantail Sprite Lima Diet Coke Maze Maze milky delight M M pulpy orange M M Nimbu Fresh Kinley water Kinley Soda
R G B 20 0m l
RG B 300 ml
Tetra Pack 200m l
Express 350ml
Pet Pet 1.25L 2.0 L 2.25L 300ml 500 600ml CAN ml
-
-
-
-
-
-
3). Problems at Pre Seller’s end. ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ _______
ANNEXURE 2
