A PROJECT REPORT
On “Market Survey To Find The Share Of Coca-Cola” LUDHIANA BEVERAGES PRIVATE LIMITED
IN PARTIAL FULFILMENT OF THE BACHELOR PROGRAM IN BUSINESS ADMINISTRATION, PUNJAB TECHNICAL UNIVERSITY, JALANDHAR, PUNJAB.
Submitted To Submitted by Lect. Rajvinder Kaur Faisal Noor BBA 4th Sem. 8140732 0007 CT INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY MAQSUDAN CAMPUS,
JALANDHAR Batch (2008-2011)
DECLARATION I here here declar declare e that that the survey survey entitl entitled, ed,” ” Marke Markett surve survey y to find find the the Share of Coca
Cola in Jalandhar ” that no part of this work has been submitted for any other degree of any other University. I also undertake that my work is purely academic and no part has been copied or taken from anywhere.
Faisal Noor (814073
20007)
2
JALANDHAR Batch (2008-2011)
DECLARATION I here here declar declare e that that the survey survey entitl entitled, ed,” ” Marke Markett surve survey y to find find the the Share of Coca
Cola in Jalandhar ” that no part of this work has been submitted for any other degree of any other University. I also undertake that my work is purely academic and no part has been copied or taken from anywhere.
Faisal Noor (814073
20007)
2
3
PREFACE Today’s competitive age, the person who gets the fastest information and uses it, win. Information is very important resources just like other physical resources such as men, material, machinery and money. The right information provided to the right time can choose right persons for the right job. Information plays a very significant role in decision making to as it provides alternatives from from whi which a choi choice ce can can be made made..
MBA is the the stone tone to
management carrier in order to achieve practical, positive and course results the class rooms learning needs to be effectively to the situation existing outside the class rooms. In the present context not only the theoretical knowledge is important, but the practical exposure of that theoretical knowledge has an equal importance too. To tame or to become an expert in a part partic icul ular ar disc discip ipli line ne a pers person on need needs s prac practi tica call dose doses s of that that knowledge from time to time. So keeping this thing into view and to get a practical exposure, I performed a training in Coca Cola Cola.. By doin doing g this this I came came to know know abou aboutt the the Prom Promot otio ional nal strategies being adopted by Coca Cola and the survey was done by me to find the share of Coca Cola.
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TABLE OF CONTENTS
S.NO
TOPICS
PAGES
1
5-14
2
Introduction to FMCG Industry in India Company Profile (Ludhiana Beverages Private Limited)
15-24
3
Objectives Of study
25
4
26-28
5
Research Methodology Data Interpretation
6
Findings
35-36
7
Limitations
37-38
8
Suggestions
39-40
9
Conclusion
41-42
10
Bibliography
43
11
Annexure
44-46
5
29-34
INTRODUCTIO N 6
INTRODUCTION Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage product comprises of bottled and canned soft drinks as well as concentrates, syrups and not-readyto-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: “ Provide a moment of refreshment for a small amount of
money- a billion times a day .” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day.
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The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks.
THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers'
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personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. The FMCG sector consists of the following categories:
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•
Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.
•
Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman.
•
Branded and Packaged foods and beverages - Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur
•
Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB
BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT 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.
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BEVERAGES
Alcoholic
Non-Alcoholic
Carbonated
Cola
Non-Carbonated
Non-Cola
Non-Cola
FIGURE 1: BEVERAGE INDUSTRY IN INDIA
THE COCA-COLA COMPANY HISTORY John Syth Pemberton, a pharmacist, first introduced Coca-Cola in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever CocaCola is enjoyed.
Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, suggested the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested, “The two Cs would look well in advertising.” The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings,
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with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.
The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Company’s incorporation, Mr. Candler announced in his annual report to share owners that “Coca-Cola is now drunk in every state and territory in the United States.”
As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.
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MANIFESTO FOR GROWTH
VALUES Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being:
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•
LEADERSHIP: The courage to shape a better future
•
PASSION: Committed in heart and mind
•
INTEGRITY: Be real
•
ACCOUNTABILITY: If it is to be, it’s up to me
•
QUALITY: What we do, we do well
MISSION
•
To Refresh the World... In body, mind, and spirit
•
To Inspire Moments of Optimism... Through our brands and our actions
•
To Create Value and Make a Difference... Everywhere we engage.
VISION FOR SUSTAINABLE GROWTH
•
PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities.
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•
PEOPLE: Being a great place to work where people are inspired to be the best they can be.
•
PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ Desires and needs.
•
PARTNERS: Nurturing a winning network of partners and building mutual loyalty.
•
PLANET: Being a responsible global citizen that makes a difference.
Use of Stimulants in Formula When launched Coca-Cola's two key ingredients were cocaine (benzoylmethyl ecgonine) and caffeine. The cocaine was derived from the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kola was replaced with a "C" for marketing purposes).
Coca — Cocaine Kola nuts — Caffeine
Formula The exact formula of Coca-Cola is a famous trade secret. The original copy of the formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor, the Trust Company, was the underwriter for the Coca-Cola Company's initial public offering in 1919. A popular myth states that only two executives have access to the formula, with each executive having only half the formula. The truth is that while Coca-Cola does have a rule restricting access to only two executives, each knows the entire formula and others, in addition to the prescribed duo, have known the formulation process.
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Franchised Production Model The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. Independent bottlers are allowed to sweeten the drink according to local tast es.
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COMPANY PROFILE
LUDHIANA BEVERAGES PRIVATE LIMITED (LBPL) ABOUT THE COMPANY Coca Cola entered India during 1970s. In 1977, the Janata Party, the then ruling party in India made it mandatory for foreign firms in the consumer sector to divest a majority stake in favour of Indian Partners. Rather than dilute is stake, Coca Cola India opted to close down its operation in India and exited the market in 1977. Coca-Cola re-entered the Indian market on 26 th 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. With access to 53 of Parley’s plants and a well set bottling network, an excellent base for rapid introduction of the Company’s International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Gold spot, Limca,
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Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the reentry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company.
“Ludhiana Beverage Private Limited” previously known as “Ludhiana Bottling Company” was established in 1966 in Textile colony Ludhiana by joint efforts of Mr. Kailash Goenka and Mr. Radhey Shyam Poder. This plant was the first franchise of Parle in Punjab. The plant started it’s with a 66 BPM funky line with a single prime product ‘Gold Spot’. The annual production was only 3.35 lacks cases. Sales were 2.7 lacks cases and turnover was 27 lacks. Distribution was done with the help of 8 vehicles (6 three wheelers and 2 trucks). The plant shifted to its new venue “185 GT Road, Ludhiana” in 1972 with the introduction of the new machinery (CEM) From America. Production capacity was increased to 132 BPM. In 1973, Limca and in 1977 Thums Up were introduced with the exit of Coke from India. In 1988, Maaza was introduced. Yearly production was increased to 7 lacks cases and sales to 6.5 lacks cases. 12 more vehicles were added for distribution with a total of 20 vehicles (14 three wheelers and 6 trucks). Ludhiana Bottling Company got the Gold medal for best quality in India and silver medal in sales.
In 1994, the legend and soft drink giant Coca Cola took over parley and Ludhiana beverages Limited is the third franchise of Coca Cola in Punjab. With the introduction of new technology in plant and implementing policies of Coca Cola system and Ludhiana Beverages Limited have come a long way in proving a name for itself. It has 600 BPM aerated line. Production is 4.3 million years with 30000 cases per day during peak season. Sales are 4.2 million cases with a turnover of 50 crores.
It is graded number 1 plant by Coca Cola India, which is utilizing its resources to its maximum with minimum wastage.
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“Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of India’s new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide. As of 2008,Coca Cola is the leading beverage industry and has 24 bottling operations of its own and 25 bottling operations owned by its franchisees.
MANIFESTO FOR GROWTH
VISION FOR SUSTAINABLE GROWTH To provide exceptional strategic leadership in the Coca-Cola India Systemresulting in consumer and customer preference and loyalty, through Coca-Cola’s commitment to them, and in a highly profitable Coca-Cola Corporate branded beverages system.
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MISSION To create consumer products, services and communications, customer service and bottling system strategies, processes 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 profits through the use of finished drinks
•
Bottlers as an opportunity to grow profits in volumes
•
Bottlers as a trademark enhancement and positive economic value added
•
Suppliers as an opportunity to make reasonable profits when creating real value-added in an environment of system-wide team work, flexible business system and continuous improvement
•
Indian society in the form of a contribution to economic and social development.
QUALITY POLICY “To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processes…Every time.”
ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN LBPL:
Chairman & Managing Director
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CEO
Vice President Production
Sr. Vice President (Sales & Marketing)
Vice President (Sales & Marketing)
General Manager
General Manager (Marketing)
Sale Manager
Channel Executive
Asst. Sale Manager
Market Developer
Field Executive
Salesman
MANUFACTURING PROCESS AT LBPL
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FIGURE 3: MANUFACTURING PROCESS
The manufacturing of the products of Coca-Cola involves the following steps:
•
Water is received and it passes through the water treatment plant, further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.
•
In the syrup room, the concentrate received is blended with the sugar syrup.
•
Once both the water and the final syrup are ready, they are both mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product.
•
On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and washed for the purpose of filling in the final product in it.
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This step does not take place in the PET bottle line as the bottles once used are disposed.
The product is finally filled in the bottles, crowned (in case of RGB)/
•
capped (in case of PET bottles), labeled and cased in order to be sent into the warehouse for distribution.
DISTRIBUTION NETWORK LBPL 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 it is needed by them.
A typical distribution chain at LBPL 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 well-organized 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.
DISTRIBUTION ROUTES The various routes formulated by LBPL for distribution of products are as follows:
•
Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month.
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Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.
•
Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non- availability of the product.
Examples: Departmental stores, Super markets etc.
•
Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace.
Examples: Small sized bars and restaurants, educational institutions etc.
•
General: Under this route, all the outlets that come in a particular area or an area along with its neighboring areas are catered to. The consumption period is not taken into consideration in this particular route.
DISTRIBUTION SYSTEM
•
Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at th e store level.
•
Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management)
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PRODUCTS 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 LBPL:
•
In the Cola Section:
•
In the Lemon section:
•
In the Orange section:
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•
In the Juice section:
•
In the Soda Water and Bottled Mineral Water section:
PACKAGING DETAILS
Coca-Cola, Thums Up, Fanta, Limca and Sprite:
•
330 ml can, 200 ml and 300 ml Returnable glass
bottles; 500 ml, 1.25 litre, 1.5 litre and 2 litre PET bottles.
•
Diet Coke: 330 ml can and 500 ml PET bottle
•
Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1litre+200 ml PET bottles and the newly introduced 200 ml Tetra Pack
•
Minute Maid Pulpy Orange: 400 ml, 1 litre PET bottles and 200ml Tetra pack
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•
Kinley Mineral Water: 750 ml PET bottles
•
Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free and 1.5 litre PET bottles.
PROJECT MARKET SURVEY TO FIND THE SHARE OF COCA COLA OBJECTIVE OF STUDY Consumption of soft drinks has increased tremendously in India. Every age group likes it, and has now become a necessary household item. In field of marketing the company conducts many surveys from time to time. This feedback is necessary for any organization. The main objective of the study lies in understanding the organization structure and studying and understanding the consumers’ perception, opinion and to find out the percentage share of Coca Cola in the market. To understand the various marketing strategies being implemented in order to give the product the required marketing push and to recognize the prospective consumers and their opinion in order to develop and market the product in a better way in the near future. The findings of the activity have been drawn out in form of graphs and suggestions have been offered there from.
To understand the organization structure.
To know about the various marketing strategies being implemented.
To know the major player and their respective share in the market.
To ensure the availability of the product in the market.
To study the distribution network.
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RESEARCH METHODOLO GY
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RESEARCH Research is a movement from unknown to known. It is actually a voyage of discovery. Research may be defined as“Systematized effort to gain any branch of knowledge”. In simple words the search for knowledge through objective and systematic method of finding solution to a problem is research.
RESEARCH METHODOLOGY Research methodology is a careful investigation or inquiry in a systematic method and finding solution to problem in a research. It comprises of defining and redefining problems, formulating hypothesis or suggested solutions, collecting and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusion to determine whether they fit us formulating hypothesis.
Research Sample Unit Sample unit refers to the geographical area in which the research is carried out. My research covering area of Jalandhar city.
Research Sample Size My sample size is 200 persons.
DATA SOURCE For completing these project two types of data were taken into consideration i.e. primary data and secondary data. 29
PRIMARY DATA In order to conduct any kind of research we always need data. Data can always be in two forms:
The data which is not present in records and publication as well as researchers have to gather a fresh data from the study conducted by him is called primary data. The primary data used for the research is collected by
Questionnaire Method
This is the method of data collection in which the data is collected with the help of questionnaire. A questionnaire consist of number of questions, used to given to the respondents who write down their replies in the space provided for that. The questionnaires are mainly consisting of choice or close ended, but few open- ended questions are also asked.
TYPE OF SAMPLING: CONVENIENCE SAMPLING SECONDARY DATA The secondary data is that which is already collected by somebody else. This is available on different sources like newspapers, Internet etc.
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DATA ANALYSIS AND INTERPRETATIO N 31
DATA INTERPRETATION 1. Decision maker age group of retailers (in years). Sr.No. 1. 2. 3. 4.
Age group (in years)
Percentage
20-30 30-40 40-50 50 & above
(%) 24 37 29 10
Age group percentage
10% 24% 1 20-30 2 30-40
29%
3 40-50 4 50 & abo 37%
Interpretation
24% decision maker belongs to 20-30 age group
37% decision maker belongs to 30-40 age group
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29% decision maker belong to 40-50 age groups and
10% decision maker belongs to 50 & above age group.
2. Percentage of the channel (store) where Coke is supplied. Sr.No. 1. 2. 3. 4.
Channel Grocery Convenience E&D-1 E&D-2
Percentage (%) 8 63 15 14
Channel percentage 80
63
60 40 20
15
8
0
14
Percentage 8
1 Grocery 2 Convenience
63
3 E&D-1
15
4 E&D-2
14
Interpretation
Convenience store accounts for high channel percentage i.e. 63%.
E&D-1 stores have a percentage of 15%.
E&D-2 stores have a percentage of 14%.
Grocery stores have a percentage of 8%.
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3. Percentage of category of outlets on the basis of volume. Sr.No. 1. 2. 3.
Category(outlet) Silver Gold Diamond
Percentage 51 30 19
Category percentage
19%
51% 30%
Silver
Gold
Diamond
Categorization of outlets is done on the basis of volume i.e. the number of cases sold in a year.
Interpretation
Silver category outlets are those, which are involved in selling 200-499 cases a year. Silver category outlets bagged the highest percentage of 51%.
Gold outlets bagged a percentage of 30%. Gold category outlets are involved in selling 500-799 cases a year. 34
Diamond category outlets bagged 19%. Diamond category
outlets are involved in selling more than 800 cases a year.
4. Percentage of status of SGA type installed in the market.
Sr.No. 1. 2. 3. 4. 5. 6.
SGA Type 4 Caser 7 Caser 9 Caser 11 Caser 13 Caser Other
Percentage (%) 8 54 13 0 1 24
SGA Type Percentage 60
54
50 40 30
24
20
13 8
10
0 0
4 Caser
Percentage
7 Caser
9 Caser
11 Caser
1 13 Caser
Other
1
2
3
4
5
6
8
54
13
0
1
24
Coca Cola uses various promotion strategies to enhance the interest of the retailers. SGA (Sales Generating Asset) is one of the promotion techniques used to enhance the interest of the retailers.
Interpretation
In market, SGA Type 7 Caser holds maximum majority of 54%. SGA Type 13 Caser holds 1%.
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5. Percentage of promotion tools used in the market. Sr.No. 1. 2. 3. 4.
Promotion Tool Signage Warm Display Rack Shelf Display Outside Crates
Percentage (%) 17 15 30 38
Promotion Tool Percentage (% )
17% 38% 15%
30%
1 Signage
2 Warm Display Rack
3 Shelf Display
4 Outside Crates
Various promotion techniques being used by Coca Cola company in order to increase their sales and volume of profit. When we enter any outlet in the front the name of outlet is best described. This is being done with the help of Signage. Warm Display racks are used to advertise products in a better manner. Shelf display being used to know the consumers about the various products.
Interpretation
Outside crates holds a majority of market share i.e. 38%
Shelf display holds a market share of 30%
Signage holds a market share of 17%.
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FINDINGS
FINDINGS
37
Coke products are having a highest percentage of market shares. Coke products are the most demanding in the market. Coke products are having a percentage of 79% followed by Pepsi products having a percentage of 19%.
Coke products account for 15% of the average daily income of the retailer.
Retailers are totally satisfied with the distribution channel of the company having a percentage of 60%.
Customer visits the market most in the time slab of 4 pm-6 pm having a percentage of 38%.
Outside
crates
form the
highest
percentage of promotional
techniques to promote the product followed by shelf display having a percentage of 30%.
64% SGA’s are pure in the market.
Silver category outlet bagged the highest percentage of 51%.
74% accounts for the prime position of SGA in the market.
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LIMITATIONS
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LIMITATIONS OF THE STUDY •
The sample size of the project is 200 retailers and the study was limited to Jalandhar city only.
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The retailers are selected at random without any consideration. The project has been based on the information provided to me by the retailers and all the analysis and interpretation has been done on its basis.
The survey was done with the help of questionnaire method. The findings of the survey may not be the representative of the market as it is limited in its scope.
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SUGGESTION S
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SUGGESTIONS
The prices of can are very high according to customers; the prices should be reduced in order to cater the lower segment of customers.
The imported cans are quite high in number in the market. Therefore various strategies to be implemented to increase the availability of cans in the market.
Schemes are to be provided by the company from time to time in supermarket to enhance the sales. Example: - On buy of 2-ltr coke you will get a discount of Rs.5.
More attention is to be paid by the company to the complaint of retailers.
Availability of Kinley water is there in the market but it is quite less in comparison to Bisleri, Aquafina and other local brands. Therefore company should provide such schemes to enhance the sales.
During off-season, the company should provide additional schemes to enhance the sales and increase their volume of profits.
During peak season, the company should ensure that there should be smooth supply of coke products in the market.
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The company should take care of supply of all the flavors in all the pack sizes.
FIFO strategy is being adopted by the company. The product first manufactured should be placed first in the market.
CONCLUSION
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Conclusion Consumption of soft drinks has increased tremendously in India. Every age group likes it, and has now become a necessary household item. In field of marketing the company conducts many surveys from time to time. This feedback is necessary for any organization.
In Jalandhar market, 79% of the people prefer Coca Cola company product. There is a monopoly of Coca Cola products in the market. The demand of 300ml pack is very high.
In a nutshell, company should aim at satisfying the consumers to attain a bigger market as well as to survive in the competitive market.
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BIBLIOGRAPHY
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http://www.cybernoon.com Case Folio: Coca-Cola, PepsiCo and the Indian Soft Drink Beverage Market (Sep. 2009)
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http://news.bbc.co.uk
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http://www.thecoca-colacompany.com
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http://www.coca-cola.com
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http://www.ko.com
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http://www.hoovers.com
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http://www.google.com
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http://www.wikipedia.org
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ANNEXURES QUESTIONNAIRE (Information provided by you will be kept confidential and use for research purpose only)
Name Of Outlet _______________________________ Gender (M/F) ____________ Address______________________________ Age _____________________________ ____________________________________ Occupation ________________________ Contact No. __________________________
1. DECISION MAKER AGE GROUP (in years): a.
20-30
b. 30-40 c. 40-50 2. WHAT IS THE CHANNEL/TYPE? a. GROCERY b. CONVENIENCE c. E&D-1 d. E&D-2 3. Percentage of category of outlets on the basis of volume 46
SILVER a. DIAMOND b. GOLD 4. Status Of SGA Type installed in the market (in caser) a. 4 b. 7 c. 9 d. 11 e. 13 f. OTHERS
5. What are the promotional tools used by the company in the market? a. Signage b. Warm Display Rack c. Shelf Display d. Outside Crates
6. IS THE SGA PURE? a. YES NO 7. IS SGA AT PRIME POSITION OR NOT? a. YES b. NO 8. WHICH CATEGORY OF THE SOFT DRINK PRODUCTS YOU KEEP IN YOUR SHOP (IN CRATES)?
PRODUCT
COKE
PEPSI
RGB 47
BISLERI
FRUITY
MOBILE PET WATER JUICE CAN SODA Total Percentage
9. AT WHAT TIME PER DAY VEHICLE REACHES? a. 8AM-10AM b. 10AM-12PM c. 12-2PM d. 2PM-4PM e. 4PM-6PM. 10. WHAT IS THE PEAK TIME OF CONSUMER VISIT? a. 7-9 AM b. 9-11AM c. 11 AM-1 PM d. 2-4 PM e. 4-7 PM 11. WHAT IS YOUR DAILY TURNOVER? WHAT IS COCA-COLA CONTRIBUTION TO THAT? ________________________________________________ 12. ARE YOU SATISFIED WITH DISTRIBUTION CHANNEL OF THE COMPANY? a. TOTALLY SATISFIED b. SATISFIED 48
