From this summer training and project titled “STRATEGY ADOPT BY COCA COLA” in Coca-Cola, I have learned a lot about real practical work being done in the market I have also watched & learned the practical applicability of the various things that we have studied theoretically.
I observed on the basis of survey in AGRA city that Coca-Cola lay emphasis on merchandising in order to become the No.1 brand in soft drink industry the report was finds out the availability of different flavor and packs.
Cola-Cola adopt a good customer relationship management, it is focus on the, segment of the product because each segment is affected by different sets of factor which hamper or enhance sales. Each segment had its own Pros & Cons. So we have to understand the various segment of soft drink industry that which flavor is existing more in the market, Such as Thums-up strong brand of coke which is more popular in young generation. I also observe about fate dealer, sub dealer, monopoly counter & its marketing strategy. Such as fate dealer is influence wrong direction to the market. They are supply product at high margin with low scheme.
The company is making all out efforts to quench the thrist of millions of people around the globe but thirst of the company to capture the globe should never be quench.
A feeling of being satisfied should never be allowed to creep into the management as well as the rank and the profile of the company. Agra market being a gateway to the U.P. and Delhi has got immense and significant potential. The efforts to capture the market completely should be the soul aim of management particularly in the light of the fact that a major bottling plant is situated in the area.s
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’ 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.
ORIGIN AND DEVELOPMENT OF THE INDUSTRY
Soft drink industry scenario the world over is almost the same with two major players i.e. Pepsi Co. and Coca-Cola having the major thank in the pie. The other major player in the industry is Cadbury-Schweppes and some local player in individual countries. The major components of the industry consist of the concentrate manufactures, bottles and the sales and distribution network of the companies the rule and responsibilities of each of them are different.
The major activity taken up by the concentrate manufactures relates to the production of the basic product which is battled by the battling plants mostly independents and subsequently sold through the established distribution set ups of the respective companies. Incidentally a lion’s share of the total sales of the product of most of the companies is through fountain a sale which sums to be the most popular outlet in the western countries. Through in India fountain sales from a very insignificant part of the sales revenue. During the initial stag both soft drink majors used a network of independent bottlers to bottle and market their products. Independents bottling arose primarily because it was not possible to create an effective organization for operating a vertically integrated company with hundreds of geographically separated manufacturing unit and local delivery operations given the limited transportation and communication system of the time and the lack of sophisticated financial and management controls.
Although Coca-Cola and Pepsi Co. are premier marketing companies the fundamental competitive advantage that allowed that to compete so effectively lies in their ability to operate through a very cumbersome distribution system.
In India after the exit of coke in 1977 Parley and pure drinks controlled the Indian Soft Drinks market. By the end of 1970 Campa-Cola was practically alone in Cola market Parleys introduced Thums up in the beginning of 1980s. By the end of 80’s Parley with Limca, gold spot and Thums up emerged as clear winner with around 60% market share.
In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This proposal as rejected on the grounds that the import of concentrate could not be agrees and the use of foreign brand name was not allowed. In year 1988 Pepsi again floated a project this time in collaboration with Punjab agro Corporation (PIAC) and Volta’s India Limited and succeeded. Finally in June 1990 Pepsi was launched in India under the brand name of ‘Lehar Pepsi’.
The most strategic step taken by Coca Cola was the purchase of Parley brands. With this coke instantly had the ownership of countries tap soft drinks brands as well as got access to Parleys extensive 54 plants bottling as well as a pre set distribution net work. This purchase gave coke an over might lead occur rival Pepsi which had came almost 5 year earlier.
GROWTH AND PRESENT STATUS OF THE INDUSTRY
The total value of the soft drink industry was $48 billion in 1990’s. The average in the states 48 gallons per year. Industry analyst contended that the soft drink industry had plateaued, and that total consumption was unlikely to increase significantly in the near future. As a consequence, the cola wars were moving to international markets. Although, after the mid 90’s both company found a different strategy fueled by the twin engines of innovation and diversity. Consumers are drinking a widening assortment of beverages. There is increasing demand for health and nutrition drinks (juices and juice-based products), rejuvenation drinks (tea and coffee), and replenishment drinks (sports drinks and water). Coke, the world’s largest soft drink company with a 45% share of the worldwide soft drink market, earned 80% of its profits outside of the United States in 1993. In according to this, Pepsi, with only 15% of its beverage operating profits coming from overseas was using “guerilla warfare” to attack Coke in selected international markets. Americans consumed 23 gallons of soft drinks a year in 1970 compared to 48 gallons in 1993. This growth was fueled by increasing availability and affordability of soft drinks in the marketplace, as well as the introduction and growth of diet soft drinks. And then become stabile. For improve profits on the saturated market was possible by cost reduction, new products but not cannibalize your products, and better value chain that returns you as a competitive advantage. It was not easy. There were many alternative to soft drinks ; coffee, beer, milk, tea, bottled water, juices, powdered drinks, wine, distilled spirits, and tap water. The 1980s Pepsi and Coke transformed their businesses.
These consumer-oriented businesses experienced changes in the forces impacting key strategy areas: investment; distribution channels; trade and manufacturer relations; shareholder pressure; marketing and promotional programme design; new competitors and proliferation of products across their traditional categories, etc. Using 1978 as a base year, the Consumer Price Index (CPI) grew at an average rate of 5.9%, compared with soft drink price growth 3.8%. Consumer demand appeared to be sensitive to price increases. The cola segment of the soft drink industry held the dominant (68%) share of the market in 1992, followed by lemon/lime with 12%, pepper flavor 7%, orange 3%, root beer 2%, and others 8%. Coke and Pepsi had a combined 73% of the soft drink market.
Pepsi and Coca-Cola have more than 200 different products globally in 2000.
FUTURE OF THE INDUSTRY
Consumers are drinking a widening assortment of beverages. There is increasing demand for health and nutrition drinks (juices and juice-based products), rejuvenation drinks (tea and coffee), and replenishment drinks (sports drinks and water). Soft drink companies intend to fulfill the needs of consumers for every occasion at every stage of their lives. Both Pepsi and Coca Cola pronounced their self a “total beverage company”. More and more, people are turning to noncarbonated beverages to give them vigor and energy. Whether it’s for a lift during the day or for enjoyment after the workday ends, consumers are embracing ready-to-drink teas and coffees. With every new discovery of the health benefits of teas, demand increases even more.
The basic product of soft drink companies “cola”. Today, cola is the most consumed beverage, still in the world. Even as lifestyles change all over the world, there is one beverage that remains the essential element for all people — water. Soft Drink Companies are also focusing on their portfolio of replenishment beverages to meet differing local tastes for water and to provide sports drinks that quench the thirst of people with active lifestyles.
The Mission Statement of the Coca Cola Company
Our mission statement is to maximize shareowner value over time.
In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:
- Consumer demand drives everything we do.
- Brand Coca Cola is the core of our business
- We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day.
- We will be the best marketers in the world.
- We will think and act locally.
- We will lead as a model corporate citizen.
The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit.
The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market.
There are nearly 6 million people in the world who are potential consumers of our company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.
ORIGIN OF THE ORGANIZATION
Coca-Cola is a carbonated soft drink sold in almost all the countries of the world. Coca-Cola is manufactured by “The Coca-Cola Company” and is often referred to as Coke. Coke is one of the most recognizable brands in the world.
Coca-Cola was invented by John Stith Pemberton in Covington, Georgia in May 1886. The beverage was initially a coca wine and was called Pemberton’s French Wine Coca. After Atlanta and Fulton County passed Prohibition legislation, Pemberton made a carbonated, non-alcoholic version of French Wine Cola and called it Coca-Cola. Coca leaves from South America were added as a stimulant to the beverage along .with kola nuts which were added to give flavor to the drink. Due to them the name Coca-Cola was given to the beverage. Asa Candler, who was also a pharmacist of Atlanta, bought the formula for Coca-Cola in 1887 from John Pemberton for $2,300. Asa Candler marketed Coke aggressively and was responsible of the dominance of the world soft drink market by Coke.
During Pemberton’s time five ounces of coca leaf were added per gallon of the syrup which constituted a significant dose. Candler claimed in 1891 that he had altered the formula of Coca-Cola and it now contained only a tenth of amount of coca leaves. Coca-Cola also contained nine milligrams of cocaine per glass till 1904, when they started using “spent” leaves instead of fresh leaves.
GROWTH AND DEVELOPMENT OF THE ORGANIZATION
The Company’s presence worldwide was growing rapidly, and year after year, Coca-Cola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more.
In 1978, The Coca-Cola Company was selected as the only Company allowed selling packaged cold drinks in the People’s Republic of China.
The 1980s — the era of legwarmers, headbands and the fitness craze, and a time of much change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola Company. Goizueta, who fled Castro’s Cuba in 1961, completely overhauled the Company with a strategy he called “intelligent risk taking.”
One of Goizueta’s other initiatives, in 1985, was the release of a new taste for Coca-Cola, the first change in formulation in 99 years. In taste tests, people loved the new formula, commonly called “new Coke.” In the real world, they had a deep emotional attachment to the original, and they begged and pleaded to get it back. Critics called it the biggest marketing blunder ever. But the Company listened, and the original formula was returned to the market as Coca-Cola classic®, and the product began to increase its lead over the competition — a lead that continues to this day.
The 1990s were a time of continued growth for The Coca-Cola Company. The Company’s long association with sports was strengthened during this decade, with ongoing support of the Olympic Games, FIFA World Cup™ football (soccer), Rugby World Cup and the National Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR racing, connecting the brand with one of the world’s fastest growing and most popular spectator sports.
New beverages joined the Company’s line-up, including Powerade® sports drink, Qoo® children’s fruit drink and Dasani® bottled water. The Company’s family of brands further expanded through acquisitions, including Limca®, Maaza® and Thums Up® in India, Barq’s® root beer in the U.S., Inca Kola® in Peru, and Cadbury Schweppes’® beverage brands in more than 120 countries around the world. By 1997, the Company already sold 1 billion servings of its products every day, yet knew that opportunity for growth was still around every corner.
In 1886, Coca-Cola® brought refreshment to patrons of a small Atlanta pharmacy. Now well into its second century, the Company’s goal is to provide magic every time someone drinks one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you can still find Coca-Cola. From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to the world’s most ubiquitous brand, with more than 1.4 billion beverage servings sold each
day. When people choose to reach for one of The Coca-Cola Company brands, the Company wants that choice to be exciting and satisfying, every single time.
PRESENT STATUS OF THE ORGANIZATION
Asia will be the biggest driver of Coca-Cola’s growth over the next 10 years, the head of the world’s biggest beverage company said, adding that the company had lost out by not investing enough in the region in the past. “Asia is at the core,” Neville Isdell, the chairman and chief executive of the Atlanta, Georgia-based Coca-Cola Co., said. The company said its worldwide unit-case volume sales grew 6%—the highest rate since 2002. Isdell said Coca-Cola has invested more than $1 billion (Rs4, 100 crores) over the last 12 months in Asia, particularly in the Philippines, China, India and Indonesia.
Coca-Cola Co slightly increased its lead over rival Pepsi-Cola Co in 2002, thanks to the successful launch of Vanilla Coke and the growth of Diet Coke, according to US soft drink industry rankings. Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 per cent, according to beverage digest-/Maxwell, a New York-based industry newsletter and data service said. The company captured a larger share of the market even though its coke classic brand fell 0.6 percentage points in market share. Atlanta-based Coca-Cola dominates 44.3 per cent of the US soft drink market, but saw its market share drop between 1999 and 2001.
With the latest gains, it’s only 0.2 percentage points away from where it stood in 1998 at 44.5.
FUNCTIONAL DEPARTMENTS OF ORGANIZATION
There are 6 functional departments within Coca Cola.
# Research and development
The Coca Cola marketing department at the Atlanta Headquarters develops core strategies for company brands to ensure that all communication is consistent in every market. With this cohesive effort, the Coca-Cola system maximizes its resources for market leadership and profitable growth. The marketing departments are responsible for marketing the products and advertising the products and promoting the products. If all these departments perform their duty firmly then the objectives of The Coca-Cola Company will meets.
The finance department of the Coca Cola Company is responsible for financial record keeping. This involves keeping records of money received and paid out. The financial records will be used to produce the annual reports for the shareholders so that they can see the company performance. The Finance department is also responsible for the management accounts of the business like marketing etc. The Coca-Cola Company finance department is also responsible for making budget of the company and for each department like marketing department or research and development department. They will also be involved in the planning process like taking over or any major decision.
The packaging department of The Coca-Cola Department is responsible for the packaging of the products. They have to make the packaging attractive so that that product meets the eyes of the consumers. Bringing new products package is their responsibility. It works with the companies bottling partners to produce an attractive combination.
The sales department of the Coca Cola Company is to coordinate the selling program. They also have to make the distribution methods, etc. Also, decide how much to sell and how much to store in the warehouse and to choose the transporting method which is the most cost efficient and the quickest way.
Research and development
This department has their budget given by the finance department and their responsibility is to investigate new products. They work closely with marketing by looking at marketing research findings. They have to bring new products in the market for the change because the consumer cannot stick with the same old products. If necessary then they also have to improve the quality of the products. The Coca-Cola Company research department has done a lot of research and recently they have launched many new products like Diet coke with lemon, Fanta Tropical, Minute maids, Fanta raspberry, Fanta blue berry etc.
This department is essential for keeping the business going. They act as a help support of the company, it is not the central purpose the
business but every business organization would need this department. Most businesses rely on administration to be organized. They deal with enquiries, give messages produce documents and give information to any customer. The complaints that this department will get would be transferred to the research and development department to make the product better or fix the problem that the consumer is having. These departments are the most important department of The Coca-Cola Company because they helps the company to meets the objectives of The Coca-Cola Company i.e. surviving, customer satisfaction and make more profits. As I said that the help desk department satisfies the customer by providing the information they needs and taking the complaints and passing to the research and development departments who improves the products.
ORGANIZATION STRUCTURE AND ORGANIZATION CHART
The Coca-Cola Company has made a lot of changes in the last year with the structure of their company from top management to the employees at the bottom of line in terms of power in the company. In years past the Coke Company has had more of a centralized organizational structure. Many of the most powerful people the company was tired of Ivester’s cramped management style of leadership and became concerned about his future at the company. When Doug Daft took over as chairman and CEO of the Coca-Cola Company the organizational structure really changed from the centralized type of structure to the decentralized type of structure within the Coke Company. Doug Ivester was running the show by himself and was unwilling to take advice from others and this was apparent when Doug Daft came in to replace him as CEO. The centralized style of management in the past had been everyone in the main branch in Atlanta. All areas of the business from foreign affairs in different countries and matters in the states were all centralized out of the Atlanta building. After daft took over a Financial Requirements When the Coca Cola company wants to put a new product on the market, buy out another company, implement new technology, or spend money in any other area there are four ways that the company can go about doing so. This investment is going to last over the fifteen years and is going to cost the Coca-Cola Company millions of dollars over that time. All three of these new drinks have been put in place to help Coca-Cola expand the company’s dominance in the beverage market. Coca-Cola can use profits from sales, sell stock, borrow money or issue bonds. s CEO He decided that the company would be better run if there were more of a decentralized form of management put into place. 90% of Coke’s business was in the hands of powerful bottling companies and this balance of power as well as personal relations must be maintained to run a successful corporation. The company also needs to make sure in the meantime that they advertise to their consumers the importance of recycling in today’s society. As the company changed their managing structure they have put people in high management positions in all parts of the world where the Coca-Cola Company has put in their products. Culture and leadership Feasibility The cultural and leadership aspects of the Coca-Cola Company have changed along with the major changes in the organization structure. One good idea would be for the company to try and invent and produce a biodegradable bottle that would be better for the environment. In the last six months Coke has gone out and put a lot of money in the furthering of the company in many different ways. A good CEO or any top executive to be successful has to be able to handle crises and let the people who are working for you know that they are important at all levels of the company and allow everyone to see a purpose and importance in their jobs. Any large corporation like Coke has a social responsibility to give back some of what the consumers have given to them. By enacting a decentralized organizational structure Coca Cola has been able to put people in the most suitable leadership positions around the world and here in the United states that will help the Coca Cola Company grow and become even more dominate in the future.
Major segments are basically those people who take this drink daily and those areas where the demands are higher then the other areas. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. So, their basic segments are those people who take this drink regularly.
Coke’s commercials basically based on young generations, so, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market.
FACTORS EFFECTING SALES
There are so many factors, which affects the sale of coke. Here we are discussing three major factors which effects coke.
- Per capita income
Per Capita Income
First we will discuss about “ Per capita income”. This is major factor that affects the sale of this soft drink. Because which every passing year budgets are becoming very strict and tight in order to purchase things. So the disposable incomes of the people are coming down. They spend heavily on rents, utilities, and education and basic necessities and after that when they get extra money they think about this soft drink .So the decreasing per capita income effects badly in selling and production of this soft drink. And to get through with this difficulty there is need to increase the level of per capita income of Pakistan because it is much lesser than the rest of the countries.
Coke’s major competitor is “PEPSI” and there is no hesitation to say these because every one knows that and all the other cold drinks and water, coffee, tea are the competitors.
Weather is the third major factor in effecting the Coke’s selling. This is underdeveloped market so the coke’s consumption in summers is 70% and in winters is 30%.
MAJOR CUSTOMERS NEED
First of all the majority don’t care that what they are going to have. In other words, they don’t care before drinking that whether it is “Pepsi” or “coke”. They don’t actually differentiate between these two brands in order to their tastes.Consumers basically drink what they get.They believe on “WHAT COLD THEY SOLD”
Consumer’s availability in brands is basically works like:
- Push availability
- Pull consumer’s demand.
For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase.
Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it.
STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”
To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows.
- Volume can be increased
- Interest level of consumers
- To take part in energetic festivals
How to increase the volume of consumers?
Coke can increase the volume by expanding the industry of coke. Through advertisements, offering different interesting things to attract people towards this product.
How to increase the interest level of consumers?
Coke is increasing the interest level of consumers by offering different flavors. For example Coke is increasing the number of flavors in “Fanta”, this is one of
the product of coke. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained.
How to take part in energetic events?
Coke is already taking part in the events like “world cup cricket” since last many years. Coke offers different attractive things in their events and through this Coke gained high profit and consumption of coke increased on these occasions.
PROFILE OF THE ORGENIZATION COMPETITOR
PRODUCTS OF COCA-COLA
Coca-Cola serves in India some of the most recalled brands across the world, Which include names such as Coca-Cola, Thumps up, Sprite, Fanta, along with The Schweppes product range.
The acquisition of Thums Up brought some of the leading national soft drinks like Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to This, Kinley mineral water was launched in the year 2000.
The Company ranking up “firsts” in the introduction of Canned and PET soft drinks, vending machines and backpack dispensers for crowds of cricket supporters.
COCA COLA BEVERAGES
- Thums up
- · Maaza
- · Sprite
- · Fanta
- · Coca cola
- · Kinley
- · Sun fill
“THANDA MATLAB COCA- COLA”
“JO CHAHE HO JAYE COCA-COLA ENJOY”
“SAR UTHA KE PIYO”
The world`s famous drink, the world 1s most valuable brand. he most recognizable word across the world after OK .Coca Cola has truly remarkable heritage. Developed in a brass pot in 1886, Coca-Cola is the most recognized and admired trademark around the globe. Not to mention the best selling soft drink in the world.
In India .Coca Cola was the leading soft-drink till 1977 when government policies necessitated its departure.Coca Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation.
“I WANT MY THUNDER”
“THUMPS UP TASTE THE THUNDER”
Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993.Thums Up is a leading carbonated soft drink and most trusted brand in India. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.Coca Cola has also launched several contests for the promotion of Thums up like Hai Dum and Ninja Jeeto Contest to attract the Youth. Coca Cola spent $ 3.5 million to beef up advertising and distribution for Thums Up. By 2002, it had become India`s No.1 cola drink India.
“Taaza Mango, Maaza Mango”
“Botal mein Aam, Maaza hain Naam”.
Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the fruit drink category. It is available in SKUs of 200ml RGB, 250ml RGB, 125ml Tetrapak and 200ml Tetrapak
“SPRITE BUJHAYA ONLY PYAAS, BAKI ALL BAKWAAS”
“DHIKAWE PE MAT JAO APNI AKHAL LAGAO”
In India, Sprite was launched in year 1999.Sprite is perceived as a youth icon. With a strong appeal to the youth, Sprite has stood for a straightforward and honest attitude. Its clear crisp refreshing taste encourages the today’s youth to trust their instincts, influences them to be true to who they are and to obey their thirst. Sprite is available around the country in 200ml, 300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr and 330ml cans.
Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood for straight forward and honest attitude. Its clear crisp refreshing taste encourages the today’s youth to trust their instincts, influences them to be true to who they are and to obey their thirst.
“KUCH BH1 HO SAKTA HAI”
“MASTI KA APNA TASTE”
Internationally, Fanta – The ‘orange’ drink of The Coca-Cola Company is seen as one of the favorite drinks since 1940’s. Fanta entered the Indian market in the year 1993. Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends. Over the years Fanta has occupied a strong market place and is identified as “The Fun Catalyst”.
Fanta advertising over a time has the biggest association with fun and friends that have reflected through past TV commercials like “Masti ka Apna Taste,Bajao Masti”.
“JUST TAKE IT EASY”
Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country.
The success formula The sharp fizz and lemoni bite combined with the single-minded positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes, refreshes and transforms.
The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country.
Sunfill powder drink has been developed locally based on the Indian consumer preferences. We have kept in mind the Indian palate ( Taste / Sweetness /Sourness /Orange flavour ) .Sunfill is also present in other countries, either in the form of a fruit n juice based drink, or in the powdered concentrate form in countries like Indonesia, Sri lanka and Bangladesh. It has been developed using the Coca Cola Company`s expertise in the beverage business.
Keeping in mind the affordability factor and the competition, Sunfill is available in three variants-Sunfill Regular, Sunfill Anand and Sunfill Tarang.
“Boond Boond Mein Vishvaas”.
Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with reverse-osmosis along with the latest technology to ensure the purity.
Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you’re a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we’re there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It’s a special thing to have billions of friends around the world, and we never forget it.
Coca Cola Company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that’s why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more.
They do agreements with a shop keepers and stores to exclusive sale in that store. These stores are called as KEY accounts in their local language.
And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.
Different Price In Different Seasons
Some times Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in India.
So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.
They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.
Eye Catching Position
Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.
Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share.
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children.
DISTRIBUTION CHANNELS STRATEGY
Coca Cola Company makes two types of selling
- Direct selling
- Indirect selling
In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.
They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.
FACILITATING THE PRODUCT BY INFRASTRUCTURE
For providing their product in good manner company has provided infrastructure these includes:
- Visi cooler
- Display racks
- Free empty bottles and shells for bottles
Coca Cola Company use different mediums
- Print media
- Pos material
- TVs commercial
- Billboards and holdings
They often use print media for advertisement. They have a separate department for print media.
Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.
Billboards and Holdings
Coca cola is very much conscious about their billboards and holdings. They have so many sites in different locations for their billboards. PepsiCo, Inc. is one of the world’s top consumer product companies with many of the world’s most important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. Three of its brands–Pepsi-Cola, Mountain Dew, and Diet Pepsi&mdashe among the top ten soft drinks in the U.S. market. The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40 percent market share and an even more staggering 56 percent share of the U.S. market. In the United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the top ten snack chip brands in the supermarket channel, including Lay’s, Doritos, Tostitos, Ruffles, Fritos, and Chee-tos. Frito-Lay generates more than 60 percent of PepsiCo’s net sales and more than two-thirds of the parent company’s operating profits. The company’s third division, Tropicana Products, Inc., is the world leader in juice sales and holds a dominant 41 percent of the U.S. chilled orange juice market. On a worldwide basis, PepsiCo’s product portfolio includes 16 brands that generate more than $500 million in sales each year, ten of which generate more than $1 billion annually. Overall, PepsiCo garners about 35 percent of its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160 countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As 2001 began, PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap’n Crunch, Life, and other ready-to-eat cereals.
When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends’ enthusiastic response convinced him that he had created a commercially viable product. For 20 years, ‘Doc’ Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a dilemma; the crucial decision he made turned out to be the wrong one and he was forced to sell. But his successors fared no better and it was not until the end of the 1930s that Pepsi-Cola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth multinational supplier of soft drinks, juices, and snack food. PepsiCo’s advance to that level was almost entirely the result of its management style and the phenomenal success of its television advertising.
Doc Bradham, like countless other entrepreneurs across the United States, was trying to create a cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every state of the union. On August 28, 1898, at his pharmacy in New Bern, North Carolina, Bradham gave the name Pepsi-Cola to his most popular flavored soda. Formerly known as Brad’s Drink, the new cola beverage was a syrup of sugar, vanilla, oils, cola nuts, and other flavorings diluted in carbonated water. The enterprising pharmacist followed Coca-Cola’s method of selling the concentrate to soda fountains; he mixed the syrup in his drugstore, then shipped it in barrels to the contracted fountain operators who added the soda water. He also bottled and sold the drink himself. In 1902 Doc Bradham closed his drugstore to devote his attention to the thriving new business. The next year, he patented the Pepsi-Cola trademark, ran his first advertisement in a local paper, and moved the bottling and syrup-making operations to a custom-built factory. Almost 20,000 gallons of Pepsi-Cola syrup were produced in 1904.
‘As defined by the American Marketing Association (AMA), Advertising is ay from of non-personal presentation of goods, services or ideas for action, openly paid for by an identified sponsor.’
Advertising today is a worldwide phenomenon. It is important at the outset to recognize that many advertisers use advertisements for many purposes with many different possible effects. Advertisements can be recognized s paid non-personal communication forms used with persuasive intent by identified sources through various media. Advertising are most commonly associated with the mass media of newspapers, magazines, cinema, television, and radio, although they frequently flourish in the other forms such as billboards, poster, and direct mail as well and finally advertisements are overwhelmingly used with persuasive intend. That is the advertisers are striving to alter our behavior and or levels of awareness, knowledge and attitude, and so on in a manner that would be beneficial to them.
BASIC FEATURES OF ADVERTISING
On the basis of various definitions it has certain basic features such as:
- It is a mass non-personal communication.
- It is a matter of record.
- It persuades buyers to purchase the goods advertised.
- It is a mass paid communication.
- The communication media is diverse such as print (newspapers and magazines)
Advertising can be thought of as a five-part business.
- Advertisers who something use
- Advertising agencies and are sometimes assisted by
- Support Organizations sent their messages through
- Media(generally mass) to potential
- Consumers of the product, service.
Advertising is a key part of marketing, but far from being (as is often assumed) the sum of it. Advertising is the use of media to inform consumers about something and or to persuade them to do something in effect; it brings product and consumers together, and then modulates the relationship between them.
WHAT IS ADVERTISING
It is a mass communication of information intended to persuade buyer to buy product with a view of maximizing a company’s profits. The elements are.
- It is a Mass Communication reaching large number of customers.
- It makes mass production possible. (Helps the company reach economics of scale).
- It is a non-personal communication.
- It is a commercial communication.
- It is speedy communication.
- In today’s competitive world. It is an essential communication.
FUNCTIONS OF ADVERTISING
For many firms advertising is the dominant element of the promotional mix – particulars for those manufacturers who produce convenience goods such as detergent, non – prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by maters of automobiles, home appliances, etc, to introduce new product and new product features its uses its attributes, pt availability etc.
Advertising can also help to convince potential buyers that a firm’s product or service is superior to competitor’s product in make in quality, in price etc. it can create brand image and reduce the likelihood of brand switching even when competitors lower their prices or offer some attractive incentives.
Advertising is particularly effective in certain other spheres too such as:
i) When consumer awareness of products or service is at a minimum.
ii) When sales are increasing for all terms in an industry.
iii) When a product is new and incorporates technological advance not strong and.
iv) When primary buying motive exists.
It performance the following functions:
- Promotion of sales
- Introduction of new product awareness.
- Mass production facilitation
- Carry out research
- Education of people.
TYPES OF ADVERTISING
Broadly speaking, advertising may be classified into two categories viz., product and institutional advertising.
The main purpose of such advertising is to inform and stimulate the market about the advertiser’s products of services and to sell these. Thus types of advertising usually promote specific, trended products in such a manner as to make the brands seam more desirable. It is used by business government organization and private non-business organizations to promote the uses features, images and benefits of their services and products. Product advertising is sub-divided into direct action and indirect action advertising, Direct action product advertising wages the buyer to take action at once, ice he seeks a quick response to the advertisement which may be to order the product by mail, or mailing a coupon, or he may promptly purchase in a retail store in response to prince reduction during clearance sale.
Product advertising is sub-divided into direct & indirect action advertising & product advertising aims at informing persons about what a products is what it does, how it is used and where it can be purchased. On the other hand selective advertising is made to meet the selective demand for a particular brand or type is product.
It is designed to create a proper attitude towards the sellers to build company image or goodwill rather than to sell specific product or service. Its purpose is to create a frame of mind and to implant feeling favorable to the advertisers company. Its assignment is to make friends for the institution or organization.
It is sub-divided into three categories: patronage, public, relations and public service institutional advertising.
i) In patronage institutional advertising the manufacturer tells his prospects and customer about himself his policies and lives personnel. The appeals to the patronage motivation of buyers. If successful, he convinces buyers that his operation entitles him to the money spent by them.
ii) Public relations institutional advertising is used to create a favorable image of the firm among employees, stock-holders or the general public.
iii) Public service institutional advertising wages public support.
The other types are as follows:
i) Consumer advertising
ii) Comparative advertising
iii) Reminder advertising
iv) Reinforcement advertising
The long term objectives of advertising are broad and general, and concern the contribution advertising should make to the achievement of overall company objectives. Most companies regard advertising main objective as hat of proving support to personal selling and other forms of promotion. But advertising is a highly versatile communications tools and may therefore by used for achieving various short and long term objectives. Among these objectives are the following:
- To do the entire selling job (as in mail order marketing).
- To introduce a new product (by building brand awareness among potential buyers).
- To force middlemen to handle the product (pull strategy).
- To build brand preference 9by making it more difficult for middleman to sell substitutes).
- To remind users to buy the product (retentive strategy).
- To publicize some change in marketing strategy (e.g., a price change, a new model or an improvement in the product).
- To provide rationalization (i.e. socially acceptable excuses).
- To combat or neutralize competitors advertising.
- To improve the moral of dealers and/or sales people (by showing that the company is doing its share of promotion).
- To acquaint buyers and prospects with the new uses of the product (to extend the PLC).
The functions of advertisement, and that purpose its ethics, may be discussion below:
- It leads o cheaper prices. “No advertiser could live in the highly competitive arena of modern business if his methods of selling were more costly than those of his rivals.”
- It acquaints the public with the features of the goods and advantages which buyers will enjoy.
- It increases demand for commodities and this results in increased production. Advertising :
a) Creates and stimulates demand opens and expands the markets;
b) Creates goodwill which loads to an increase in sales volume;
c) Reduces marketing costs, particularly product selling costs.
d) Satisfied consumer demands by placing in the market what he needs.
- It reduces distribution expenses in as much as it plays the part of thousands of salesman at a home. Information on a mass scale relieves the necessity of expenditure on sales promotion staff, and quicker and wider distribution leads to diminishing of the distribution costs.
- It ensures the consumers better quality of goods. A good name is the breath of the life to an advertiser.
- By paying the way for large scale production and increased industrialization, advertising contributes its quota to the profit of the companies the prosperity of the shareholder the uplifts of the wage earners and the solution of the unemployment problem.
- It raises the standard of living of the general public by impelling it to use to articles of modern types which may add to his material well being. “Modern advertising has made the luxuries of yesterday the necessities of today ………………… It is a positive creative force in business. It makes two blades of grass grow in the business world where one grew before.
- It establishes the goodwill of the concern for the test articles produced by it and in course of time they sell like hot cakes consumer search for satisfaction of their needs when they purchase goods what they want from its beauty, superiority, economy, comfort, approval, popularity, power, safety, convenience, sexual gratification and so on. The manufactures therefore tries to improve this goodwill and reputation by knowing the buyer behavior.
WHY & WHEN TO ADVERTISE
Advertising as a tool to marketing not only reaches those who buy, but also those whose opinions or authority is counted for example a manufacturer of marble tiles and building boards advertises not only to people who intend to build houses but also to architect and engineers. While the manufacturers of pharmaceuticals products advertise to doctors as well as to the general public. At time it is necessary for a manufacturer or a concern to advertise things which it does not sell but which when sold stimulates the sales of its own product. There are concerns like electric heaters, iron etc. because the use of these increases the demand for their products.
Advertising should be used only when it promises to bring good result more economically and efficiently as compared to other means of selling. There are goods for which much time and efforts are required in creating a demand by sending salesman to prospective buyers than by simply advertising them. In the early days of the cash register in America it was sold by specially trained salesman who called on the prospective users and had the difficult task of convincing them that they could no longer carry on with the old methods, and that they urgently needed a cash register. In our country certain publishers have found it less costly to sell their books by sending salesman from house to house among prospective buyers than to advertise them. In these two examples the cost of creating demand would be too high if attempted by advertising alone under such circumstances advertising is used to make the salesman acceptable to the people they call upon to increase the confidence of the public in the house. Naturals when there are good profits competitors will be attracted and they should be kicked out as and when sufficient capital is available by advertising on a large scale. Immediate result may not justify the increased expenditure but it will no doubt secure future sales.
DESIGNING ADVERTISING CAMPAIGN:
Advertising is an organized series of advertising messages. It has been defined as “a planned, co-ordinate series of promotional efforts built around a central theme and designed to reach specified goals.” In other words, it is an orderly planned effort consisting of related but self – contained and independent advertisements. The campaign may appear in one more media. It has single theme or keynote idea and a single objective or goal. Thus, “a unified theme of content provides psychological continuity throughout the campaign while visual and oral similarity provides physical continuity. In short run, all campaign want pre-determined psychological reaction in the long run, practically all campaigns have sales goal. The series of advertisements used in the campaign must be integrated with the sales promotional efforts and with the activities of the sales force. Campaigns vary in length some may run only for a few days, other for weeks, yet other for a season or the entire year. Usually a range of 3 to 6 months includes many campaigns. Many factors influences campaign length such as competitors advertising media, policies, and seasonal falls curves of the product involved the size of the advertising funds, campaign objectives and the nature of the advertisers marketing programmed.
OBJECTIVES OF CAMPAIGN
The advertising campaign, especially those connected with the consumers aims at achieving these objectives:
i) To announce a new product or improve product.
ii) To hold consumers patronage against intensified campaign use.
iii) To inform consumers about a new product use.
iv) To teach consumers how to use product.
v) To promote a contest or a premium offer.
vi) To establish a new trade regional, and
vii) To help solve a coca regional problem.
The institutional advertising campaigns on the other hand, have these objectives.
i) To create a corporate personality or image.
ii) To build a company prestige.
iii) To keep the company name before the public.
iv) To emphasize company services and facilities.
v) To enable company salesman to see top executive consistently when making sales calls, and
vi) To increase friendliness and goodwill towards the company.
Developing the campaign programmers. The advertising campaigns are prepared by the advertising agencies, which work on behalf of their clients who manufacture product or service enterprises, which have services to sell. The word campaign is used because advertising agencies approach their task with a sum Blanca of military fanfare in which one frequently hears words like target audience logistics, zero in and tactics and strategy etc.
The account executive co-ordinates the work in a campaign. The creation of an advertising campaign starts with an exploration of consumer’s habits and psychology in relation to the product. This requires the services of statistical trained in survey techniques and of others trained in social psychology. Statisticians select samples for survey which are done by trained interviewers who visits individuals, included in the sample and ask question to find out about their taste and habits. This enquiry often leads to a change in a familiar product. For instance bathing soap may come in several new colors or cigarette in a new packet or talcum powder in another size.
Such interviews are often quite essential to find out the appeal of advertising message for a product that would be most effective with consumers.
After getting the data the account executive puts together the essential elements of his clients brief, interprets the research findings and draws up what he calls the “advertising strategy”.
STAGE IN ADVERTISING CAMPAIGN
Several steps are required to develop an advertising campaign the number of stages and exact order in which they are carried out may vary according to organizations resources, the nature of its product and the types of audiences to be reached. The major stages/steps are:
- Identifying and analyzing the advertising.
- Defining advertising objects.
- Creating the advertising platform.
- Determining the advertising appropriation.
- Selection media plan.
- Creating the advertising message.
- Evaluating the effectiveness of advertising.
- Organizing of advertising campaign.
1. Identifying & Analyzing the Advertising target:
Under this step it is to decided as to whom is the firm trying to reach with the message. The advertising target is the group of people towards which advertisements are aimed at four this purpose complete information about the market target i.e. the location and geographical location of the people, the distribution of age, income, sex, educational level, and consumers attitudes regarding purchase and use both of the advertising product and competing products is needed with better knowledge of market target, effective advertising campaign can be developed on the other hand, if the advertising target is not properly identified and analyzed the campaign is does likely to be effective.
2. Determining the advertising objectives:
The objectives of advertisement must be specifically and clearly defined in measurable terms such as “to communicate specific qualities about a particulars product to gain a certain degree of penetration in a definite audience of a given size during a given period of time”, increase sales by a certain percentage or increase the firm’s market shares.” The goals of advertising may be to:
i) Create a favorable company image by acquainting the public with the services offered available to the employees and its achievements.
ii) Create consumers or distributor awareness by encouraging requests providing information about the types of products sold; providing information about the benefits to be gained from use of the company’s products or services; and indicating how product (or services) can be used;
iii) Encourage immediate sales by encouraging potential purchasers through special sales contests, getting recommendation of professional people about company’s products etc.
iv) It secures action by the reader through associating ideas, repetition of the same name in different contexts, immediate action appeal.
3.Creating the Advertising platform:
An advertising platform consists of the basic issues or selling points that an advertiser wishes to include in the advertising campaign. A single advertisement in an advertising campaign may contain one or more issues in the platform. A motorcycle producers advertising platform should contain issues which are of importance to consumers filling and such issues also be those which the competitive product do not posses.
4.Determining the Advertising Appropriation:
The advertising appropriation is the total amount of money which marketer allocates. For advertising for a specific time period. Determining the campaign budget involves estimating now much it will cost to achieve the campaigns objectives. If the campaign objectives are profit relating and stated quantitatively, then the amount of the campaign budget is determined by estimating the proposed campaigns effectiveness in attaining them. If campaigns object is to build a particular type of company image, then there is little basis for predicting either the campaigns effectiveness or determining the budget required.
5. Selecting the Media:
Media selection is an important since it costs time space and money various factors influence this selection, the most fundamental being the nature of the target market segment, the type of the product and the cost involved. The distinctive characteristics of various media are also important. Therefore management should focus its attention on media compatibility with advertising objectives.
|1.||Press Advertising or Print|
|i)||Newspapers||City, Small town, Sundays, Daily, weekly, Fortnightly, quarterlies, financial and annuals, English, vernacular or regional languages.|
|ii)||Magazines||General or special, illustrated or otherwise, English, Hindi, Regional language.|
|iii)||Trade & Technical Journals, Industrial year books, commercial, directories, telephone, Directories, references books & annuals.||Circulated all over the country and among the industrialist and business magnates.|
|2.||Direct Mail||Circulars, catalogues, leaflets, brochures, booklets, folders,colanders, blotters, diaries & other printed material.|
|3.||Outdoor or Traffic||Poster and bills on walls, railways stations platforms outside public buildings.|
While advertising explains the logics behind buying, sales promotion offers can incentives to do so. Sales promotion operates at three levels.
- At the level of consumer it is called consumer promotion e.g. free gifts, samples and price offs.
- At the level of dealers and distributors, it is allied trade promoting e.g. free goods display contests, dealer sales contest, push money etc.
- At the level of sale person it is called sales force promotion e.g. salesmen’s contest, benches, sales rallies.
Conjunctionally the glamour in sales promotion is stolen by advertising. Advertising expenses so far accounted for more than 60% of the total promotional budget.
Today sales promotion are rising rapidly with more and more bands flooding the market, the pressure to occupy display space at retail outlet is more and retailers thus demand more sales promotion efforts from their suppliers.
STUDENT’S WORK PROFILE
I was appointed in coke as a supervisor. My role & responsibilities were:
- Sales promotion
- Making the Distribution strategies.
- Checkout the all freezes which are provided by coke.
- Find the advertising places.
- Survey of the target market.
- Find out the competitors strategies in the market.
- To giving the knowledge of schemes of coke to retailers.
DESCRIPTION OF LIVE EXPERIENCES
- To learn about the sales strategy
- To learn that how to increase sales volume
- To learn how to treat retailers
- To learn about the market demand
- To learn about the sales promotion and distribution
STATEMENT OF RESEARCH PROBLEM
This project report takes into account the Various MARKETING STRATEGIES adopted by COCA COLA.
STATEMENT OF RESEARCH OBJECTIVES
This project takes a look that what type of marketing strategy adopted by coke. The two major global players i.e. Pepsi and Coca-Cola dominate the soft drinks industry in India.
The objectives of the project are to study the importance of advertising and sales promotion schemes in the soft drinks industry.
The project takes a view on:-
- What is advertising?
- The relevance of Advertising and sales promotion in soft drink industry.
- Role of Advertising in the Modern Business.
The study also keeps in mind various theories like DAGMAR & AIDS and their relevance in today’s changing scenario.
RESEARCH AND METHODOLOGY
The project will involve a study of Advertisements and sales promotions schemes of the soft drinks industry. The study will include following parameters.
- Top of the mind recall.
- Brand awareness about an advertisement.
- The use of celebrity in a particular campaign and their impact.
The mode of the data collection would include both primary and secondary.
The impact of sale promotion schemes would measure on:
- Their visibility.
- Recall value of a post schemes.
- Acceptability of the current scheme by the customers and sales force.
For this purpose both primary and secondary data would be collected.
For clarification certain annexure of ads and sales promotion schemes are added in the end.
The project work started with the collection of secondary data from various sources such as newspaper, magazines, journals and web sites. Along side two questionnaires were also prepared one aimed at consumers and the other aimed at retailers together primary data, regarding the influence and effect of Advertising and sales promotion schemes on the sales of soft drinks (Carbonated Soft drinks).
This research includes:
- Problem identification
- Scope of study
- Objective of study
- Research design
- Sampling plan
- Method of data collection
- Sources of data collection
1. Problem Identification:
Marketer should be aware of the perception of customer about his product so that he can gain maximum out of it. He should be aware of who are decision maker as well as ultimate buyer of product.
2. Scope of study:
The scope of this study is kept within the control of individual researcher.
3. Research Design:
The method adopted for research is “Experience Survey” i.e. survey of people who have practical experience of soft drinks in Faridabad, NCR in such a research design the decision regarding what, where, whom, how much, by what means are concerned. It is the blue print for the research undertaken.
Measurement and Scaling Technique for Research:
In this research the rating scale technique is used. Rating scale involves qualitative description of a limited no of aspects of thing or of traits of a person. In rating scale we judge properties of objects without reference with other similar object.
The ranking can be done by graphic rating scale as:
- Like very much
- Like some what
- Dislike some what
- Dislike very much
5. Sampling Plan:
It includes sample unit, sample size, sample procedure.
Sample Unit: Sample unit is target population of AGRA.
Sample size: Research is done on 200 respondents of AGRA.
6. Method of data collection:
- Observation method
- Questionnaire method
- Data collection through journal, magazines
- Data collection through websites of various Soft Drink’s related companies.
7. Sources of data collection:
Primary sources: Sample survey of target population
Secondary sources: Company pamphlet’s, different journal such as A+M, Business magazine as business world, business India, industry manual and web sides.
8. Limitations of Study:
- Resources for collection of data are less.
- Time period for data collection is short
- Difficult to get response from customer.
- Experience in field of research is difficult job
ANALYSIS OF DATA
Which brand of soft drink you prefer?
When asked about particular brands consumers responded the two cola’s namely Pepsi and coke as their favorites. Out of which Coca Cola was leading with 61% while Pepsi came second at 39%, It was also observed that cola segment was preferred by more than 70% of the total consumers interviewed.
Why do you prefer it?
When asked to the consumers responded availability of a particular brand of soft drink of the most important in their purchase decision. Through advertising and sales promotion schemes were also very important while making their final purchase decision as it is an impulse purchase, consumers often related their purchase with the recall of an ad which their viewed on television. Apart from easy availability and promotional schemes price was another major driving factor in the purchase of a soft drink for consumers (Pet bottles prices vary).
When you talk of soft drink advertising which all brands come to your mind (please specify in order of recall)?
When the above question was asked to the consumers they could easily recall Pepsi and Coke ads almost equally. Though Pepsi had a very minor edge. This question also shows Pepsi’s aggressive nature in advertising, which is its trademark the world over. Pepsi has always been known as an aggressive advertiser and this is also true in Indian market. Thums up was a distant third because of its continuous attacks on Pepsi.
Do you think the advertising done by the companies affects the sales of their respective soft drinks?
As its is clear from the above graph that advertising as a major impact on the sales of soft drinks most of the consumers almost 71% thought advertising has direct effect on the sales of the soft drinks. When consumers were asked about the effect of ads on sales most of them responded in favor. They said that ads were the most important factor in driving the sales of any brand. Especially with the younger generation, it often drives them towards a particular brand of soft drink due to its advertisement.
Which from of advertising and sales promotion strategies do you think is most effective for soft drink industry?
Consumers think that television advertising has a major impact on the sales of soft drinks. As television reaches maximum urban homes, which are the major market of the soft drinks, they have a direct impact on the consumer’s behavior. Apart from that newspaper advertising is also important. Apart from these advertising media, sales promotion schemes from the next important strategy.
According to you which company’s advertising are more creative and appealing?
HTA, the advertising agency for Pepsi, has come up with many innovative ads in the past, creating a good impression in the mind of consumers. Most of the consumers interviewed responded that they like Pepsi ads more than that of Coke. Recently Coke has also come up with few ads, which are specifically by the consumers.
ANALYSIS OF RETAILERS
Type of business
To conduct the research a number of Retail Outlets were visited these retail outlet included provisions stores, eateries, sweets shops, tea stalls, Dhabas etc. Out of these it was found that provision stores of the local market where the major sellers of the soft drinks and consumers usually preferred to buy soft drinks from their local grocery store.
Which segment of soft drink consumer generally asked for? (Rank them on scale 1, 2, 3)1 is max. 3 is min.
As it is an apparent from the above graph when asked about which segment the consumers generally asked for the retailer’s respondent that Cola by itself was the largest selling soft drink amounting to 61% of total soft drink sales. Orange came a distant second at 17% followed by cloudy lemon, which constituted another 14%.
Why do think that a consumer ask for a particular brand of soft drink?
The consumer preferences are very fragile and not firm. Consumers’ preference usually changes with the various schemes and the advertising. Which has major impact on their purchase decision? Price is another critical factor on which the consumer purchase decision is based. It is often found that the consumers change their preference in accordance with various price discounts offered to them. Availability is another major aspect, which decides the actual purchase. A consumer may change his or her preference based in the fact that which brand is available chilled at that moment.
Major sale of soft drink is due to?
Though advertising and sales promotion act as a major tool to attract customers for the purchase of the particular soft drink, but it is actually the availability that is by far the most important factors, which drive the sale. Apart from availability the price factor is again cited as an important factor in the actual sale of the soft drinks. Apart from these various schemes and sales promotion activities under taken by the company also acts as sources of sale. The brand preference and loyalty is by far the least important factor driving the sale.
What are the attributes that influence you to decide which brand of soft drink to keep? (Rank them on scale of 1-4).
The attributes that influence a retailer to keep a particular brand of soft drink are pro motional schemes brand name consumer pill and company support. Out of these factors promotional scheme again is the major factor that influences any retailer to keep the stock of particular brands. Apart from this consumer pull and brand name acts are the major influencers for the retailers to keep stork of a particular soft drinks. One more factor which affects the retailers to keep stock of particular soft drinks is the company support which is provided in from of visi coolers, banners, sign boards etc. through the kind of company support provided by the majors is almost the same.
Does the promotional scheme of the company have any effect on the sales of soft drinks brands?
As sighted in the above analysis, sale of any soft drink is very much affected by the promotional schemes provided by the company to the retailers. These schemes act as the push towards the sales for any soft drink brands.
The overall evaluation of a company’s Strength, Weakness, Opportunities and Threats is called SWOT Analysis.
The SWOT Analysis is further divided into two parts :-
- Internal environment analysis
- External environment analysis
Internal environment analysis (analysis of strength and weakness)
It is one thing to discern attractive opportunities and another to be able to take advantage of these opportunities. Each business unit needs to evaluate its internal strength and weakness.
As the research is conducted following strength and weakness of the Coke Company is found.
- Good company image.
- Well trained and experience workers and executives are available.
- Strong distribution network.
- Brand ‘Thums-Up’ alone cover the big market. Adopted two types of distribution channels (Direct route and indirect route).
- Effective sales promotion schemes and commission to salesman on achieving target.
- Effective executive team.
- Less personal contacts with retailers.
- Service is not good.
- Company officials do not visits outlets regularly.
- Fewer advertisements Channels.
- Bad and delay in claim settlement.
- No proper maintenance of asset as like visi-coolers, dealer board, glow sign, etc.
- Less availability of dealer board, glow signboard, painting etc.
- High growth rate for fruit drink market.
- Rural area has a great population of youths in U.P.
- Rural area has good market share of PepsiCo in India.
- Therefore there is a need only of marinating this share in future.
- Targeting the upper middle class for home take segment.
- High growth of competitor’s products.
- Better facilities provided by the competitor to their distribution this might lead to switch over to slice distribution towards competitors.
- Indifference among distributor and fat dealers.
- Different effective promotion schemes of competitors.
Although it is very early to suggest any thing to such a internationally renounced company like Coca-Cola having in the mature stat e of marketing yet for the local market, client distributors & retailers, based on the interactions & feed backs from various outlets, segments of customers I would like to suggest as under:
- Company should promote good and heart felt Slogans and Jingles.
- Company should provide others small advertising items in the form of garlands, hangers recto the shopkeepers as there are cheap and Q good source of advertising.
- Company should sponsor important event like World cup, Asian & other tournament, any event related to film awards and programmers of local importance.
- Company, If possible should give schemes to the customers through newspapers having provision for discounts in purchasing its products.
- Company should organizing campaigns & distributes caps, Key rings, glasses, serving tray, pussels on which company packages are branded.
- Chilling equipments should provide on a cost basis.
- Chilling equipments (like family freeze, vizzi or Electric bottle cooler) should be provided to the outlets
- If there is any default found in the chilling equipment provided by the company should be repaired quickly when so required.
- Company should ensure good supply of stock.
- Company should go for more monopoly counters.
- Company should give discount with every crate as is being done by Pepsi.
- There should be surprise check by the company to endure whether benefits of schemes provided by the company reach outlets or not and take corrective measures in case of default.
- Company should arrange seminars and meetings with dealers on an ongoing basis on monthly interval.
- Shopkeeper feedback should be taken in regular manner.
- A special shopkeeper’s care cell should be formed to listen the shopkeeper’s grievance on the lines of customer care cell.
- No. of hoardings should be increased.
- Flexibility in the allot of monopoly items should be encouraged.
- . Some free gifts should also be given on established Brands to stimulance the retailer.
- Company should elaborate public announcement on important days like Health day, Anti drug day world aids day etc.
- Company should tap colleges and school canteens. They should be given extra discounts as these outlets give potential long run customers to the company.
- Company should provide Tables, Chairs wall clocks, stands, openers to the retailers as f or them type of free gifts are significant and they promote those company’s products who provide such items to the company.
- Soft drinks come under the category of products purchased on impulse. Through the markets is marred by brand loyalty the purchase decision itself is a low involvement decision. This attitude of impulse buying is slowly changing to occasion-led-buying and also to some extent to consumption through home refrigerator particularly in urban areas.
- The market is slowly moving from non-alcoholic carbonated drinks to fruit based drinks and also to plain bottled water due to lower price and ready availability.
- Consumers purchase soft drinks primarily to quench thirst. Therefore people traveling and not having access to hygienic water reach out for soft drink. This accounts for a large part of the sales.
- Brand awareness plays a crucial role in purchase decisions.
- Consumers prefer convenient and economy products.
- Availability in the chilled from affects the purchase decision. This has made both companies to push its sales and to increase its retail distribution by offering Visi Coolers to retailers.
- While there is no restriction on consumption of soft drinks by any age group, the main consumers of this market are people in the age group of 30 and below.
- Product differentiation is very low, as all the products taste the same. But brand loyalty is high in the case of kids and people in the age group of 20-30 years.
- Consumers are sensitive to the outlay where the purchase of beverages is concerned. Hence the market is price sensitive.
- Due to the high cost of soft drinks, a lot of times consumers prefer beverages like tea, coffee or other drinks like sharbat and squashes.
- Per capita consumption in India is among lowest in the world at 5 bottles per annum compared to 80 bottles in Thailand and 800 bottles in USA.
- Delhi market has highest per capita consumption in the country with 50 bottles per annum compared to 5 bottles for the country.
Retailers stated that the consumers are loyal to the particular segment of the soft drink i.e. cola, orange or lemon. But as far the loyalty for the brands in each segment is concerned, it is not very significant.
43% of the retailers surveyed told that in soft drinks advertising is the key component in driving sales. While 32% stated promotional schemes and 20% brand loyalty as the reason.
As consumers are not very brand loyal where the purchase of soft drinks is concerned, the retailer push becomes a critical issue. They usually sell the product in which they get the maximum benefit. For this, the companies try to offer them higher margins
BIBLIOGRAPHY & REFERENCES
Kottler Philip : Marketing Management
Chunawall S.A. : Essentials of Marketing Research
Kothari C.R. : Research Methodology
Sherlerkar S.A. : Marketing Management
Schiff man Leon. G. : Leslie Lazar Kaunk
- Business world
- Coca-cola company booklet
- Pepsi company Booklet
- Ø www.google.com
- Times of India
- Economic Times