Coca Cola Sss Marketing

INTRODUCTION
ABOUT THE TOPIC
Marketing is typically seen as the task of creating,
promoting & delivering goods & services to consumers and
business. The marketing mix is the set of marketing tools that the
firm uses to purpose marketing objectives in target markets. The
sales comparison and sales promotion
Marketing is indeed an ancient art it has been practiced in on
from or the other since the day of Adam and Eve, its emergence as
a management discipline however is of relatively recent origin. And
with in this short period, it has gained so much importance and
stature that today most management thinkers and parishioners
throughout the world view it as the most important of all
management functions in any business.
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy individual and
organizational goals.
-American
marketing association
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--- an organizational function and a set of process for
creating communicating, and delivering value to customers and for
managing customer relationships in way that benefit the
organization and its stake holders.
Human activity directed at satisfying needs and wants
through exchange process.
--- Philip
Kotler
The on going process or moving people closer to
marketing a decision to purchase, use fallow, refer, upload, down
load, obey, reject, confirm, become complacent to some one elses
products services or values. Simply, if it doesnt facilitate a sale
then its not marketing.
The thing process of anticipating, identifying and satisfying
customer requirements profitably chartered Institute of marketing.
-----Chartered Institute of Marketing.
The sales comparison is one of the three major groupings
of valuation methods, called the three approaches to value,
commonly used in real estate appraisal. This approach compares a
subject property's characteristics with those of comparable
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properties which have recently sold in similar transactions. The
process uses one of several techniques to adjust the prices of the
comparable transactions according to the presence, absence, or
degree of characteristics which influence value. As such, all sales
comparison approach methods are variations on hedonic-type
measurements, which determine the value of something as the
sum of the value of the various components which contribute
utility.
Sales displays are the act of putting things for view or on
view. In sales management, sales display means arranging
systematically saleable goods so as to attract the attention of the
customer. Advertising helps in awareness, reminding and
informing customers about products and services. The actual
product is not displayed in advertising. Sales displays fulfill that
need by appealing to the eye of the prospects. Through a sales
display, the manufacturer shows the goods or services to the
customer. In the past sales display was the only media for
exhibiting products and inducing prospects to buy the same. Sales
displays are actually advertising at the point of purchase.
Sales promotion is another important component of the
marketing communication mix. It is essentially a direct and
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immediate inducement. It adds extra value to the product and
hence prompts the dealer/consumer to buy the product.
The committee on definition of the American marketing
association defines sales promotion as follows.
In a specific sense, sales promotion includes those sales
activities that supplement both personal selling and advertising,
and coordinate them and make them effective, such as displays,
shows , demonstrations and other non-recurrent selling efforts not
in the ordinary routine.
Soft Drink Industry is a typical consumer product industry
and has come a long way since its genesis in 1772. Around 1807
in U.S., Bottled soda was being manufactured on a large scale.
Joseph Hawkins has invented a Machine and obtained the first
recorded patent for manufacturing bottles carbonated with in
1809.
Today millions and millions of bottles are consumed every
day all over the world. With the changing trends and habits, social
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and cultural differences among different countries are fast
disappearing. Soft Drink culture has come up enormously through
out the world. In almost all of the countries, Soft Drinks were
consumed despite the varying factors like age, income, profession,
climate etc. This has lead to the enormous increase in the Soft
Drink Market.
They had being number of significant and far reaching
changes in the globe. The disintegration of the USSR has been the
most crucial one for the business of the world. As a result, there
has been rethinking on the part of several governments to open
their economy for international business. Accordingly, several of
them have been pursuing market oriented economic policies.
Soft Drink Industry was considered as one of the typical
consumer products industry. In India soft drinks manufacturing
unit was first started by M/s. Parle (Exports) Pvt. Ltd., Mumbai
in the year 1949.
Later Coca-Cola export corporation CCEC started its unit in
Delhi in the year 1950. It captured the Indian Market and became
the market leader of soft drink industry with in a short period.
In the early days, the concentrate was imported from an
overseas plant of CCEC. In 1958, its own plant was setup at Delhi
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for manufacture of concentrate. It has 22 plants operated in 13
stages through 2, 00,000 retail outlets.
In 1971 sales touched Rs.637.78 lachs yielding profits of
Rs.51.37 lachs before taxes. By 1976-77 margin before taxation
was 55% - 60%, which is 35% - 40% more than that
consumer goods gradually fetch. It enjoyed the monopoly powers
as the market leader in the industry in the year 1975 government
stipulated that it should dilute its equity of 40% to the Indian
brands and transfer its technology to India.
The CCEC agreed to former condition and did not accept the
later one as it wanted to keep allusion and quality control office in
India to control its COKE concentration. In 1977 CCEC left the
country. The gap created by the exit of CCEC laid a favorable
ground for the indigenous products to capture the market.
After Coca-Cola bid a sad farewell in 1977, the Indian
market was open for various new cool drinks and several
companies come forward pursuing different brands in the market.
Parle Exports Pvt. Ltd., introduced there cola Thums Up with
a mighty bank saying Happy drinks are here again pure drinks of
Delhi also without loosing much time introduced Campa Cola along
with Campa Orange and Campa Lemon.
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Modern bakeries a Government of India enterprise too
entered the market with Double Seven and Moan Marketing with
Marry and Pick Up. With this in the Indian high vantage advertising
was on. The competition in the soft the peak drinks reached to
stage. With Pepsi foods entering the Indian Market.
Pepsi has introduced its Coal Lehar Pepsi in 1989 with
attractive advertisements. At present the main competitors are
Coca-Cola and Pepsi Foods.
Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri was a
subsidiary to Sri Sarvaraya Sugars Limited, Chelluru. There was
another Bottling Unit under the same company at Sathupalli. Both
Vemagiri and Sathupalli units operate under the same
management. The Vemagiri Unit was given the franchise of Parle
(Exports) Pvt. Ltd., in 1968. Its area of Distribution is East and
West Godavari Districts in Andhra Pradesh. In April 1991 the
Districts of Chandrapur and Gatcheroli in Maharashtra and Raipur,
Durg, Rajnndogan and Bastar Districts in Madhya Pradesh have
been allotted to the company for distribution of Parle soft drinks.
The supply of soft drinks to these areas is being made from the
Sathupalli Unit. Sri Sarvaraya Sugars Limited, Bottling Unit,
Vemagiri, was situated at Vemagiri on National Highway No.5 which
is about 10 Kms. From Rajahmundry. It manufactures aerated
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waters like Coca-cola, Thums Up, Sprite, Fanta, Limca, Maaza and
Kinley Club Soda and proposes to expand its activities by
introducing Coca-Cola & Fanta to about 12,000 crates per day.
From 1968 to 1984, the Vemagiri Unit operated with a
capacity of 200 BPM. The actual expansion of the plant was
started from 1984. In 1984, a new Bottle Washer and New Filler
were purchased and a separate Administrative Building was built in
the premises.
In 1991, a New Maaza plant with Hot Process was built which
posted over 5 to 6 Lakhs. In 1994, the company proposed to install
a new Bottling Line costing about Rs.10.5 Crores to meet the
increased demand on the capacity due to the introduction of Coca-
Cola and other brands. The machinery is totally imported from
Germany. By the end of July, 1995, the production was started.
Earlier, crates were handled manually. Now they are taken in
pallet with a capacity of 32 crates per palet. This is lifted by Fork
Lifter which costed Rs.7 Lachs. This system is at present working
for unloading the empty bottles from the vehicles and it is also
being tried for loading purpose. If loading is done manually, it
requires ten people to work for one hour to load a truck. But with
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the above system, it takes only 30 min. with four people. Thus, the
Bottling Unit is trying to mechanize to the possible extent.
The Vemagiri Bottling Unit is the Franchise that buys
concentrate from HCCBPL and prepares the carbonated drinks and
market them in the Area allotted to it. The bottler is under license
of the parent company but it acts as an independent organization
with class links to the parent company HCCBPL.
For taking up the production of Coca-Cola brand, any bottling
unit should introduce paramix Rs.2 Crores and plastic crates and
bottles contains Rs.2 Crores on the hold for the expansion of plant,
for importing the machinery and for other facilities. Rs.16 Crores
are being invested by the B.U. at present HCCBPL sales in AP are
135 Lachs creates.
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Sales promotion is another important component of
the marketing communication mix. It is essentially a direct and
and coordinate them and make them.
OBJECTIVES OF THE STUDY
To know the sales promotion efficiency of dealers or S.S.S.
Ltd., Bottling Unit, Vemagiri and S.S.S. Ltd., B.U.
To make extensive study on the existing sales promotion
To show the sales comparison between the branded product
separated by the Sri sarvaraya sugars bottling
To give and idea about every detail of the product such as
quality, price, supply.
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To acquire the information regarding of the practical of the
organization
To know the various factors affecting the sale of the product.
To give information regarding after sales service of a product.
NEED FOR THE STUDY
The modern world emphasizes an purposeful learning
experience under natural condition to meet the cut-throat
competition existing in the world .so under such circumstances a
project can be defined as a purposefully dedicated effort in social
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environment to each and nourish in the present world so summer
training undergone is of immense benefit to us. The training
undergone gives lot of practical exposure and the real working
environment.
After a vivid knowledge of management theories and
practice it becomes very essential practical implementation of
everything learned. So in order to meat the challenge, we marched
towards common goal. The training enabled us a real platform of
life to implement the knowledge gained. So the knowledge in the
nature practical workers condition of a corporate house.
SIGNIFICANCE OF THE STUDY
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In a competitive market, sales promotion, sales promotion
comes handy to a marketer, to solve of his short-term hurdles.
Short term because, the impact of sales promotion measures is not
that durable and lasting like the results obtained through
advertising and personal selling. Sales promotion, by and large, is
understood and practiced as a catalyst, and a supporting facility to
advertising and personal selling.
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SCOPE OF THE STUDY
This study gives information regarding the history of soft
drinks and particularly the market history of Coca-Cola
drinks.
The study gives an analysis on the marketing performance of
Coca-Cola soft drinks.
The study concentrates on analyzing the satisfaction levels
of the customers in Amalapuram.
100 respondents were chosen at random for the purpose of
the study.
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METHODOLOGY OF THE STUDY
The purpose of Market Research was to know about the sales
promotion of retailers of S.S.S.Ltd., Bottling Unit, Vemagiri.
The data collected and observation made during the
interviews were analysed qualitatively & quantitatively to arrive to
a conclusion about the sales promotion efficiency of retailers of
S.S.S. Ltd., B.U. Vemagiri.
I. Sampling Procedure:
(a) Method: Stratified Random Sampling.
(b) Sampling Unit : Retailers
Geographical Variants Semi Urban & Rural
Business Variants Pan Shops Departmental Stores
Hotels & Others
(c) Sample Size : 100
II. Data Collection:
Methods: Observation & Structured Interviews with officials
& Retailers.
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III. Source of Data Collection:
Through primary and secondary sources required data was
collected. Data relating to the organization was collected from the
records of the organization with the interviews with the officials.
IV. Methods of Data Collection:
Most of the retailers are illiterates. So they are not able to fill
up the questionnaire on their own. Accordation so schedule was
prepared & formulated in a manner so as to make sure that the
pre-defined objectives were achieved. The schedule had prepared
after care & thought.
V. Techniques employed for Survey:
The mode of survey, which I have used in collection of the
primary data is personal interviews.
In personal interview I asked the respondent in a face to face
interaction and noted down the observations & responses.
The main purpose of choosing interviews as a mode of
survey.
It requires relatively shorter period of time to complete.
Researchers can procure different types of information.
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There exists a personal interaction between the investigator
and the respondent so the data obtained will be more
reliable & valid.
Field Work :
The survey was conducted at
Amalapuram areas.
Covering the retailers of Coca-Cola product a schedule of
questions used for the in-depth interviewing of the retailers. The
schedule included all the necessary type of questions, which were
more than enough to achieve the research objective. The field
work, which was included in my project work, was around 30-40
days and it was one of the best experiences, which was helped as
per my expectations.
Most of the respondents have given a very good response,
but there were cases when it became difficult to set the response
but I tried my level best to convince them in order to get the
unbiased information. But the survey has thought me that it is
difficult work, and no doubt. I have displayed a high degree of
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patience, in order to achieve the information from respondents. I
tried my level best to present the collected information by clearly
explaining the research objectives to hesitate the respondents.
LIMITATIONS OF THE STUDY
To study of soft drinks industry, this is to be known to be
seasonally fluctuating one, does not taken account seasonal
fluctuations.
Time and expenses are major constraints.
Unavailability of recent information due lack of awareness of
the retailers.
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The study is limited to Amalapuram only.
The sample which has been taken for the study is too small
to study the market share in amalapuram.
The duration of the study for two months is constraint to
achieve at conclusion regard the market share of COKE.
The material provided by the management for this project
study is not sufficient.
SOFT DRINK INDUSTRY PROFILE
Evolution of Soft Drinks:
Soft Drink Industry is a typical consumer product industry
and has come a long way since its genesis in 1772. Around 1807
in U.S., Bottled soda was being manufactured on a large scale.
Joseph Hawkins has invented a Machine and obtained the first
Page | 19
recorded patent for manufacturing bottles carbonated with in
1809.
Today millions and millions of bottles are consumed every
day all over the world. With the changing trends and habits, social
and cultural differences among different countries are fast
disappearing. Soft Drink culture has come up enormously through
out the world. In almost all of the countries, Soft Drinks were
consumed despite the varying factors like age, income, profession,
climate etc. This has lead to the enormous increase in the Soft
Drink Market.
They had being number of significant and far reaching
changes in the globe. The disintegration of the USSR has been the
most crucial one for the business of the world. As a result, there
has been rethinking on the part of several governments to open
their economy for international business. Accordingly, several of
them have been pursuing market oriented economic policies. All
the countries had to enter this line in time with the global changes.
INDUSTRY SCENARIO
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Soft Drink Industry was considered as one of the typical
consumer products industry. In India soft drinks manufacturing
unit was first started by M/s. Parle (Exports) Pvt. Ltd., Mumbai
in the year 1949.
Later Coca-Cola export corporation CCEC started its unit in
Delhi in the year 1950. It captured the Indian Market and became
the market leader of soft drink industry with in a short period.
In the early days, the concentrate was imported from an
overseas plant of CCEC. In 1958, its own plant was setup at Delhi
for manufacture of concentrate. It has 22 plants operated in 13
stages through 2,00,000 retail outlets.
In 1971 sales touched Rs.637.78 lachs yielding profits of
Rs.51.37 lachs before taxes. By 1976-77 margin before taxation
was 55% - 60%, which is 35% - 40% more than that
consumer goods gradually fetch. It enjoyed the monopoly powers
as the market leader in the industry in the year 1975 government
stipulated that it should dilute its equity of 40% to the Indian
brands and transfer its technology to India.
The CCEC agreed to former condition and did not accept the
later one as it wanted to keep allusion and quality control office in
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India to control its COKE concentration. In 1977 CCEC left the
country. The gap created by the exit of CCEC laid a favorable
ground for the indigenous products to capture the market.
After Coca-Cola bid a sad farewell in 1977, the Indian
market was open for various new cool drinks and several
companies come forward pursuing different brands in the market.
Parle Exports Pvt. Ltd., introduced there cola Thums Up with
a mighty bank saying Happy drinks are here again pure drinks of
Delhi also without loosing much time introduced Campa Cola along
with Campa Orange and Campa Lemon.
Modern bakeries a Government of India enterprise too
entered the market with Double Seven and Moan Marketing with
Marry and Pick Up. With this in the Indian high vantage advertising
was on. The competition in the soft the peak drinks reached to
stage. With Pepsi foods entering the Indian Market.
Pepsi has introduced its Coal Lehar Pepsi in 1989 with
attractive advertisements. At present the main competitors are
Coca-Cola and Pepsi Foods.
Indian Soft Drinks Market:
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Market Size:
Soft Drinks include all types of non-alcoholic carbonated
flavored or sweetened beverage. Soft Drinks are mostly placed
inbottles and come in a variety of flavors. Soft Drink
manufacturing in India was first introduced by Parle in 1948.
With the introduction of fruit based soft drinks packed in
tetra packs the bottled soft drinks market has an estimated size of
130 million cases per annum (1 case = 24 bottles) which is worth
around Rs.1,400 crores with an annual growth rate of about more
than Rs.1 Crore.
The population of India is over 100 crores and retail outlets
are over 3 lakhs compare to Philippines where the population is
only 60 million and retail outlets more than 4 lakhs.
The per capita consumption of soft drinks in India is very low
at 3.5 bottles per annum. Presently there are approximately 12
crores consumers in India and in Delhi alone there are 12 lakh
consumers. It was estimated that by the end of this year Indias
share to the world market will be around 0.5% to 1%.
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Delhi is the largest consumer of soft drinks in India with an
annual consumption of 75 lakh cases. Mumbai stands second with
50 lakh cases. Together they account for 25% of the national sale.
There is tremendous growth potential in India but the per
capita consumption has not grown as the focus was mainly on the
four metros and some important urban cities. Focus on the rest of
the country especially the rural areas has been ignored.
Simple arithmetic reveals why Coca-Cola and Pepsi are
battling it out the India Market even with the pathetic per capita
consumption. This is because Indians consume 2.7 billion cases or
soft drinks every year. USA on the other hand with its population
200 million consumes only 80 millions every year.
It is assumed in the study that soft drink market can triple
and grow at a rate 2001 is 15% or 20% per annum for the rest or
the country. In the beverage market, which is worth over 2,000
Crores, more than 50% of the entire sales take place in the month
of May and June.
SOFT DRINK SECTOR OVERVIEW:
Background
Segmentation
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Consumer habits and practices
Market Size and Growth
Major players and Market Share
Distribution Networks
Manufacturing Process
Retailers Perception
Background:
Non-alcoholic soft drink beverage market can be divided into
fruit drinks and soft drinks.
Soft drinks can be further divided into carbonated and non-
carbonated drinks. Cola, Lemon and Oranges are carbonated
drinks while mango drinks come under non-carbonated category.
The soft drinks market till early 1990s was in hands of domestic
players like Campa, Thums Up, Limca etc but with opening up of
economy and coming MNC players Pepsi and Coke are the leaders
in carbonated drinks market in India it is Pepsi which scores over
Coke but this difference is fact decreasing (courtesy huge ad-
spending by both players). Pepsi entered Indian market in 1991
coke re-entered (After they were thrown out in 1977, by the then
central government) in 1993.
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Pepsi has been targeting its products towards youth and it
has struck right chord with the market and the sales have been
doing well by sticking to this youth bandwagon. Coke on the other
hand struggled initially in establishing it self in the market. In a
span of 7 years of its operations in the country it changed its CEO
four times but finally they seem to have started understanding the
pulse of India consumers.
Soft drinks are available in glass bottles, aluminum cans and
PET bottles for boom consumption. Fountains also dispense them
in disposable container.
Segmentation:
The soft drink market can be segmented on the basis of
place of consumption or on the basis of type of products.
The variable place of consumption divides the market into two
parts:
On premises 80% of the consumption of soft drinks is on
premise ie., restaurants, railway stations, cinemas etc.,
At-home-the rest 20% of the market comprises of the soft
drink purchased for consumption at home.
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The market can also be segmented on the basis of types of
products into cola products and non-cola products.
Cola products account for nearly 61 62% of the total soft
drinks market. The brands that fall in this category are
Pepsi
Coca-Cola
Thums Up
Diet Coke
Diet Pepsi
Non-Cola segment which constitutes 36% can be divided into
4 categories based on the types of flavours available namely:
Orange
Cloudy Lime
Clear Lime
Mango
M/s PARLE (EXPORTS) PRIVATE LIMITED
M/s Parle (Exports) Pvt. Ltd., was a 100% Indian private
owned company belonging to the Shaun brothers. It has its head
quarter at Vice Parle in Bombay. Basing on that name of site the
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company got its name as Parle. It started its production of soft
drinks in the year 1948.
In the year 1962, the Parle Group was spilt into two divisions.
Biscuits Division
Soft Drinks Division
Again in 1966-67, bottling division was spilt into later groups.
Parley (Exports) Pvt. Ltd., which supplies the concentrate and
provides promotional activities to all its 50 franchises and
Parle Beverages which looks after its own bottling plants
located in Mumbai and Delhi.
The company is selling over 40 million crates earning
annually Rs.150 Crores. In Andhra Pradesh, Parle is having 9
franchise units located at Hyderabad, Secunderabad, Khammam,
Kurnool, Nellore, Guntur, Vijayawada, Rajahmundry and
Visakhapatnam.
In Vemagiri the franchise unit is the S.S.C. & B.U. Industries
Limited. It is manufacturing and marketing the products to 2
districts, East and West Godavari Districts & Khammam.
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ATLANTA BEGINNINGS :
It was 1886, and in New York, workers were constructing the
status of Liberty. Eight Hundred miles away another great
American Symbol was about to be unveiled.
Like many people who change history, John Pemberton, a
Civil War Veteran and Atlanta Pharmacist, inspired buy simple
curiosity. He loved tinkering with medical formulas, and one
afternoon, searching for quick core for headaches, he stirred up a
fragrant, caramel-colored liquid in a three-legged pot. When it was
done, he carried it a few doors down to Jacobs Pharmacy.
In first year, the company sold about 9 glasses of Coca-Cola
a day. A century later, the Coca-Cola Company has produced over
10 billion gallons of syrup. 886-1991, Pemberton sold the company
to Atlanta businessman as Griggs Candler for a total about $ 2300.
Candler would become the companys first president and the first
to bring real vision to the business and brand.
SAFEGUARDING THE BRAND
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1899
The aggressive promotion worked. By 1895 Candler had
build syrup plants in Chicago, Dallas and Los Angeles. Inevitability,
the Sodas popularity led to a demand for it to enjoyed in new
ways. In 1894, Mississippi businessman named Joseph
Bieedenharn became the first to put the drink in bottles. When in
1889, two Chattanooga lawyers, Benjamin F. Thomas and Joseph B.
White head, secured exclusive rights from him to bottle and sell
the beverage for the sum of one dollar.
THE WOODRUFF LEGACY
1909
Advertising focused on the authenticity of Coca-Cola urging
consumers to demand the genuine and accept no substitute.
The company also decided to create a distinctive bottle shape to
assure people they were actually getting a real Coca-Cola. In
1916, the root glass company or Terre haute, Indian, began
manufacturing the famous contour bottle.
As the country roared into the new censure, the Coca-Cola
Company grew rapidly, moving into Cuba, Puerto Ricol, France and
the other countries and U.S. Territories. In 1900, there were two
bottlers of Coca-Cola by 1920 there would be about 1000.
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THE WAR AND ITS LEGACY
1920 & 1930
Perhaps no person had more impact on the Coca-Cola
Company than Robert Woodruff. In 1923, five years after his father
Ernest purchases the company President. Woodruff was a
marketing genius that saw opportunities for expansion everywhere.
He captivated foreign market with innovative campaigns. Coca-
Cola traveled with the US team to the 1928 Amsterdam Olympics;
the logo was emblazoned on racing dog sleds in Canada and the
walls of bullfighting arenas in Spain. Woodruff pushed
development and distribution of the six-pack, the open top cooler,
and all innovations that made it easier for people to drink Coca-
Cola.
A WORLD OF CUSTOMERS
1960s
New brands introduced Sprite, Fanta, Fresca and TAB joined
in 1960s Mr. Pibb and Mello Yello in 1970s coke and cherry coke in
1980s and POWERADE and Fruitopia in 1990s.
1970s & 1980s
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After 75 years of amazing success with brand Coca-Cola the
company decided to expand new flavors sprite in 1961, Tab in 1963
and Fresca in 1966. The international appeal of Coca-Cola was
emboded by 1971 commercial, were a group of young people from
all over the world gathered on a hilltop in Italy to sing, I would like
to buy the world a coke. In 1978, the Coca-Cola company was
selected as the only company allowance to sell packet cool drinks
in the peoples republic of China.
COCA-COLA NOW
21st Century
In Feb. 2000, Doug draft was named Companys Chairman.
Coca-Cola is huge international company but drafts vision is to
have the company operate as a collection of smaller, locally run
business. No one, draft points out decide to enjoy of our
product globally.
Thats why Coca-Cola is committed to local markets, to
paying attention to what people form different cultures and
backgrounds like to drink, and where and how they want to drink it.
Every ten seconds, 1,26,000 people chose to reach for one of the
coca-cola company brands, and it is the companys mission to
make the choice executing and satisfying, every single time.
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The present unit in Rajahmundry performs the activity of
bottling. The manufacture the drink, package and distribute it
locally. They produce accreted water with flavors of Coca-Cola,
Thums Up, Sprite, Fanta, Limca, Soda (Kinley). And the sale
products are water and Maaza.
THE UP OF PARLE WITH COKE:
After a long period of 16 years Coca-Cola (coke) India Ltd.,
has read the Indian market. M/s. Parle (Exports) Pvt. Ltd., got
merged with coke India Limited in November 1993 under the
agreement that all of Parle with be marketed under the brand
name of Coke India Ltd., There are many reasons for multinational
companies showed interest to set up their own units in India, Coke
also wanted to enter the Indian Market again after a period of 16
years. Already coke international company entered in the market,
heavy competition from the Pepsi Foods Pvt. Ltd., The competition
between these two companies may be too severe to parle. To
withstand their position in the market and to survive in the long
run are multinational companies and with them in terms of Rupees,
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which has very low value when compared to a Dollar. In order to
survive in the long and with stand in the market position, Parle got
merged with Coke India Ltd., rather than fighting with
multinationals. The other advantages for the Parle group by the
merging are:
Dollar to Rupee Value
Rapid Market Development
Much Exposure
International Image.
The Coke India Limited is having its plants, 2 in Kolkatta and
4 in Delhi. In beginning it has launched its products Coca-Cola in
Amritsar, Chandigarh, Ludhiana, Kolkatta, and Delhi. The response
to the product to the products is very encouraging. The next
launch was in Chennai, Hyderabad and Secunderabad. The
product was launched in October 1994 in Visakhapatnam October
1995 in total it has 18 plants.
Coke India Ltd., is the principal supplier of concentrate to all
franchise units of Parle. Coke is manufacturing and marketing only
4 products which are shown in table 1.4 with the up coke can
market the other flavored products of Parle Brands, there by giving
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the products a higher international image. The coke has 81%
market share and Pepsi and Artos and remaining market share.
COKE PRODUCTS MANUFACTURED AND MARKETED ABROAD
PRODUCT FLAVOUR
Coca-Cola Cola
Sprite Clear Lime
Fanta Orange
Thums Up Cola
Table no:2.1
G) CURRENT AND FUTURE OF THE SOFT DRINKS IN INDIA
CURRENT STATUS:
The market for soft drinks in India is 120 million crates (24
bottles per crate). It has been growing at 5.6% per annum for the
last few years. It seems like a lot, but according to markets, this
amounts to just 3 bottles per capita.
CONSUMER HABITS AND PRACTICES
Soft drinks come under the category of products purchased
in impulse. This attitude of impulse buying is slowly changing to
occasion-led buying and also to some extent to consumption
through home refrigeration particularly in urban countries.
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The market is slowly moving from non alcoholic carbonated
drinks to fruit based drinks and also to plan bottled water due to
lower price and ready availability.
Consumers purchase soft drinks to quench thirst. Therefore
people traveling and not having access to hygienic water reach out
or soft drinks. This accounts for a large part of sales.
Brand awareness plays a very crucial role in purchase
decisions.
Consumers prefer convenient and economy products.
Availability in the chilled form effects the purchase decision.
This has made both the companies to push its sales and to
increase its retail distribution by offering Visi Coolers to retailers.
While there is no aversion to consumption of soft drinks by
any age group, the main consumers of this market are people in
the age group of 30 and below.
MARKET SIZE AND GROWTH:
Soft drink market size FY00 was around 270mm cases
(6840mm bottles). The market, which was witnessing 5% growth
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in the early 90s and even slower growth at around 2-3 % in late
80s. Presently the market growth has slowed down with growth
rate of 7-8 % per annum compared to 22% growth rate in the
previous year. The Market size for FY01 is expected to be 7000 mm
bottles.
YEAR PRODUCTION
90-91 2195
91-92 2490
92-93 2800
93-94 3000
94-95 3240
95-96 4000
96-97 4450
97-98 4920
98-99 5670
99-00 6480
00-01 7000
01-02 7400
02-03 7800
03-04 8100
04-05 8400
05-06 8600
Table no:2.2
MARKET CHARACTERISTICS:
The soft drink market is highly skewed in terms of place
consumption, in terms of regional distribution and soft drink flavors
as well as in terms of SKUs while 80% of the consumption is
impulse based outside home 20% comes from consumption at
home. This trend is slowly changing with increase in occasion led
sales. Changing life style, increasing urbanization and impact of
liberalization has slowly and gradually started moving the market
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from impulse led to occasion led and home refrigeration led
consumption.
The market preference is highly regional based. While Cola
drinks have main markets in metro cities and northern states UP,
Punjab, Haryana etc. Orange flavored drinks are popular in
southern states. Sodas too are sold largely in southern states
besides through bars. Western markets have preference towards
mango flavored drinks Diet coke presently constitute just 0.7% of
the total carbonated beverage market.
In terms of SKUs the market is skewed towards 300 ml which
constitutes around 80-85% of the market rest is in the form of
other pack sizes. But with occasion led and home refrigeration led
consumption the sales of bigger SKUs like more than one litre pack
sizes has increased this has led to increase in contribution from
PET bottles sales to 15% of the total turnover in FY00 most of the
Pet bottle sales, up to 75% are in urban areas. Pepsis Cola product
is targeted towards youth while the Mirinda and 7UP positioned on
fun platform and for enjoying light moments of life.
The distribution network or Coca-Cola had 6.5 lakh out lets
across the country FY 2000 which the company is planning to
increase to 8 lakhs by FY 2001. On the other hand Pepsi Cos
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distribution network had 6 lakhs outlets across the country during
FY 2000 which it is planning increase to 7.5 lakhs by FY 2001.
MAJOR PLAYERS AND MARKET SHARES :
The soft drink market in India is dominated by the two global
majors Pepsi and Coca-Cola. Coca-Cola which had wound up its
India operations during the introduction of the FERA regime,
reentered 16 years later in 1993. Coca-Cola acquired major chunk
of the son drink market by buying local brands. Thums Up, Limca
and Gold Spot from Parle beverages. Coca-Cola has also acquired
Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport
Cola in 1999 and now recently in October00 it acquired
distribution rights of these brands from IFB Agro Limited. Pepsi
although started a couple of years before Coca-Cola in 1991, has a
lower market share today. It has bought over Mumbai based
Dukes range of soft drink brands. Both the cola manufacturers
come up their own market share figures and claim to have
increased their share. Recently in August 2000 Pepsi claimed to
have increased its market share for first 5 months of calendar year
2000, to 49% from earlier levels of 47.3% while Coke claims to
have increased its share in the market to 57% in the same period
from 55% in the corresponding period last year. Coke figures are
based on Orgys data while that of Pepsi are based in IMRB data.
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MARKET SHARE (in %)
Brand Name Market share in Market Share
(%) (ORG fig) (in %) IMRB
figures
Pepsi 41 49
Coca-Cola 57 48
Table no: 2.3
There is no involvement of wholesalers in the distribution of
products. It is more like an agent network. The companies have
divided the country into various regions and established a
franchisee in each region. The franchisees have their own bottling
plants and manage all the day to day operation. However, of late,
the soft drink companies have started setting up company owned
bottling units have been acquiring some of its franchise bottles.
MANUFACTURING PROCESS:
Soft drinks may be carbonated or non-carbonated. For
carbonated drinks carbonation forms a critical part of the process.
In carbonated carbon dioxide is dissolved in the water, which is
used in manufacturing the drink. Normally, the ingredients in soft
drinks are as follows-acidulate (citric, malic or phosphoric acid),
sweetener, flavor and preservative.
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In a bottling plant, soft drink Companys supply concentrates
to the bottlers where it is diluted in distilled water along with other
ingredients in specific proportions. The quality of this mixture is
maintained through strict controls.
RETAILERS PERCEPTION :
A survey was conducted to study the retailers views of the
present market, future trends and the consumer behavior patterns.
The findings of the survey are as follows:
Retailers stated that the consumers are loyal to the particular
segment of the soft drink ie., 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.
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While distributors get margin of Rs.8-9 per catre (1catre = 24
bottles) at 3-4% of MRP, retailers are given a margin of 10-12% of
MRP. The retailers are not happy with this as the cost of
refrigeration is very high for soft drinks, to over come this problem
the companies are offering Visi-coolers scheme to their main
retailers.
CLASSIFICATION:
Classification based on packaging
Bottled Soft Drinks
Tetra Packs, Dispenses
Cans
Pet Bottles
PROBLEMS SPECIFIC TO INDIAN SOFT DRINK INDUSTRY :
The Government of India has considered the soft drink as
non-essential. As a result, the government on the bottled soft
drink levied heavy excise duty. Today soft drink costs Rs.5 to
Rs.50. Based on the quality to the customers. However, in a
country like India where 40% of the population exists below
poverty line consumers cannot afford such price. As a result the
trading activity of the soft drinks are concentrated in and around
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major towns and cities where the purchasing power of the people
and standard of living is high.
Growth rate of this industry in India is also not encouraging,
Infact, data from the Ministry of Food Processing show that growth
rate in the soft drink market was the minimum in 1996.
Changes in technology and consumer tastes brought about
many changes in the Indian Soft Drink Industry from the time of
introduction or soft drink in India till today.
PROFILE OF SRI SARVARAYA SUGARS LIMITED, BOTTLING
UNIT, VEMAGIRI.
Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri
was a subsidiary to Sri Sarvaraya Sugars Limited, Chelluru. There
was another Bottling Unit under the same company at Sathupalli.
Both Vemagiri and Sathupalli units operate under the same
management. The Vemagiri Unit was given the franchise of Parle
(Exports) Pvt. Ltd., in 1968. Its area of Distribution is East and
West Godavari Districts in Andhra Pradesh. In April 1991 the
Districts of Chandrapur and Gatcheroli in Maharashtra and Raipur,
Durg, Rajnndogan and Bastar Districts in Madhya Pradesh have
been allotted to the company for distribution of Parle soft drinks.
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The supply of soft drinks to these areas is being made from the
Sathupalli Unit. Sri Sarvaraya Sugars Limited, Bottling Unit,
Vemagiri, was situated at Vemagiri on National Highway No.5 which
is about 10 Kms. From Rajahmundry. It manufactures aerated
waters like Coca-cola, Thums Up, Sprite, Fanta, Limca, Maaza and
Kinley Club Soda and proposes to expand its activities by
introducing Coca-Cola & Fanta to about 12,000 crates per day.
From 1968 to 1984, the Vemagiri Unit operated with a
capacity of 200 BPM. The actual expansion of the plant was
started from 1984. In 1984, a new Bottle Washer and New Filler
were purchased and a separate Administrative Building was built in
the premises.
In 1991, a New Maaza plant with Hot Process was built which
posted over 5 to 6 Lakhs. In 1994, the company proposed to install
a new Bottling Line costing about Rs.10.5 Crores to meet the
increased demand on the capacity due to the introduction of Coca-
Cola and other brands. The machinery is totally imported from
Germany. By the end of July, 1995, the production was started.
Earlier, crates were handled manually. Now they are taken in
pallet with a capacity of 32 crates per palet. This is lifted by Fork
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Lifter which costed Rs.7 Lachs. This system is at present working
for unloading the empty bottles from the vehicles and it is also
being tried for loading purpose. If loading is done manually, it
requires ten people to work for one hour to load a truck. But with
the above system, it takes only 30 min. with four people. Thus, the
Bottling Unit is trying to mechanize to the possible extent.
The Vemagiri Bottling Unit is the Franchise that buys
concentrate from HCCBPL and prepares the carbonated drinks and
market them in the Area allotted to it. The bottler is under license
of the parent company but it acts as an independent organization
with class links to the parent company HCCBPL.
For taking up the production of Coca-Cola brand, any bottling
unit should introduce paramix Rs.2 Crores and plastic crates and
bottles contains Rs.2 Crores on the hold for the expansion of plant,
for importing the machinery and for other facilities. Rs.16 Crores
are being invested by the B.U. at present HCCBPL sales in AP are
135 Lachs creates.
SALES GROWTH of Sri Sarvaraya Sugars Limited, Bottling
Unit, Vemagiri
Year Growth Rate (In %)
1991-92 14
1992-93 28
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1993-94 18
1994-95 13
1995-96 17
1996-97 21
1997-98 19
1998-99 17
1999-00 18
2000-01 16
2001-02 21
2002-03 24
2003-04 26
2004-05 29
2005-06 31
Table no:3.1
Flavours Introduction specification of Years
S.N Name of the Product Flavour Date of
o. Introduction
1. Limca Cloudy 1972 February
Lemon
2. Maaza Mango 1976 November
3. Thums Up Cola 1978 June
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4. Bisleri Club Soda Soda 1982 June
5. Coca-Cola Cola 1995 July
6. Fanta Orange 1996 January
7. Sprite Clear Lime 1999 May
Table no: 3.2
PLANT CAPACITY:
The company installed a Semi Automatic Plant conforming
the layout, the present capacity of the plant is 600 bottles per
minute per shift of 8 hours i.e., 15,000 crates and for the hour
1875 crates. In summer season production in 4 shifts produce
22,500 crates. Recently company started another B.U. of at
Kesavaram of starting production capacity of 600 BPM.
LOGO
ORGANISATION:
It is the grouping of activity necessary to attain the objective
of the company. The activities are assigned to people with
authority to fulfill the goods.
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The Managing Director is the Head of the Organization. He is
In-charge of Production and Marketing and other activities.
Production manager is given the charge of complete production.
PLANNING :
Strategic planning sets the stage for the rest of the planning
in the process or developing and maintaining a strategic planning
between the organizations goals and capabilities and its changing
the organizational objectives and selecting strategies to achieve
these objectives.
PLANT SCHEDULE :
In fixing each brand on the basis of availability of empty
bottles, market demand and inventory position of tilled bottles.
The warehouse can facilitate and so the production is also limited
to the capacity of the warehouse.
RAW MATERIALS :
The raw materials required for manufacturing various brands
of soft drinks are flavor, essence and concentrates of cola, which
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are supplied by parle, Sugar and water are required Sugar is taken
from S.S.S. Ltd., and water is supplied by borewells, two bore wells
are available in the S.S.S.Ltd., B.U. Water is treated with chemicals
and purified (ie., Water treatment plant capacity is 4,00,000 M 3.
The following chemicals are required HCL, Naocl, Nachl, Shamp,
Nact2 and Co2. Above chemicals are used in water treatment plant.
PLANT LAYOUT:
According to the sequence of operations the machines and
equipments are an-anged. The machinery and workers are
specialized in the performance of specific operations such as
preparations of Syrup, filling the bottles aerating and sealing the
bottles with lids. All these operational approach is a continuous
movement. The layout of the bottling plant installed by the
company to produce soft drink is a line layout.
QUALITY CONTROL:
The company takes great care to maintain the quality or the
products or their factory. The bottles are carefully examined for
impurities continuously as the bottles move out. Random samples
are taken every half an hour and subjected to chemical analysis in
the laboratory.
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The flavour content, Sugar Percentage, Smell, Appearance
and Taste of the product are checked.
INCENTIVES TO THE PRODUCTION STAFF:
The company is giving incentives to all the markets engaged
in production. They had given moral wages and the incentives are
paid in addition to their wages when production target per shift is
achieved. In the peak demand seasons, the extra 4 hours worked
by the worker is paid double the normal wages.
COMPETITORS FOR S.S.S. LTD., BOTH UNIT :
Apart from competition from organization sector like Pepsi,
Mc Dowells etc., S.S.S.Ltd., Each unit is facing competition from the
unorganized sectors was 33% now it has reduced considerably to
the negligible number. The main competitors from the
unorganized sector are Artos, Vimal, Bajaj and N.V.R. Drink. Artos
is selling Rs.5 per bottle and Vimal and Bajaj at Rs.5.00 per bottle.
There local competitors survive in the market only because of price
factor basically. They are exempted from the central excise duty
and as such they are maintaining an approximate difference of
Rs.35 per crate. Their activity is restricted to semi rural markets
and these products could not be able to create any image or
identity.
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ORGANISATION STRUCTURE:
Organization structure is a basic framework within which the
managers decision making behavior takes place. Structure
basically deals with relationships. Organization structure is the
pattern of relationship among various components of parts of the
organization. This prescribes the relationships among various
activities and positions. Since various persons hold these
positions, the structure is the relationships among people and the
organization.
There are two types of organizations they are Formal
organization and informal organization. Organization chart is the
vital tool for providing information about organizational
relationships. Such a chart diagrammatically form which shows the
major functions and their respective relationships, the channels of
formal authority and the relative authority of each manager who is
in-charge of each respective function. The organization chart
shows only formal relationships, the informal relationships are
mostly transitory and flexible. So they are not depicted on the
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chart. Moreover, it depicts formal relationships only at a given
point of time.
Organization charts can be divided into master charts and
supplementary charts. The master chart shows the entire formal
organization structure. The supplementary charts show details of
relationships. Authorities and the duties within the prescribed
area of department or major component of the company.
Organization Structure of Marketing Department
Board of Directors
Managing Director
Manager
Sales Manager
Asst Sales Manager
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Marketing Marketing Marketing Marketing Marketing
Marketing Marketing
Executives Executives Executives Executives Executives
Executives Executives
Diagram no: 3.1
SALES PROMOTION COCA-COLA IN INDIA
In todays economy, most producers dont sell their goods
directly to the ultimate users. Between them and final users
stands a host of marketing intermediaries a variety of functions
and bearing a variety of names. Products characteristics have a
higher influence over the channel that is to be used. Each product
is a bundle of attributes. Some attributes such as perish ability,
bulkiness, degree of product standardization, Service requirements
and unit value often are the very imprint implications for channel
design.
The channel used by HCCBPL for the distribution of its
products clearly reveals that bulky should have minimum handling
turnover. If the soft drinks are manufactured and bottled with the
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HCCBPL degree of product standardization, service requirements
and unit value often are the very imprint implications for channel
design.
The channel used by HCCBPL for the distribution of its
products clearly reveals that bulk products should have turnover. If
the soft drinks are manufactured and bottled with the CIs sell the
concentrate to the bottles and markets the product in the fined
franchisee areas through retailers in the given franchise areas. It is
the distribution of the franchisee to set up his own distribution
system, the ultimate aim behind it being efficient catering.
Franchising Lisa system of distribution under a licensing
system through which the owner of a product. Method or service
approaches independent businessmen in selected territories
appoints them as sole franchisee for particular areas and
encourages them to make profit for themselves whilst the owner
retains control over the technique or style with which the product
or service is merchandised.
Franchising involves conferring temporary monopoly rights of
production and/or distribution of specified goods or services by the
producer to an agency.
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Franchise system for consumer products like soft drinks may
be defined as a business form essentially consisting of an
organization (the franchiser) with a market tested business
package, centered on a product or service entering into a
continuing contractual relationship with franchisees. Typically self-
financed and independently owner managed small firms, operating
under the franchisers, trade name to produce and/or market goods
or services according to a format specified by the franchiser.
PROFILE OF Coca-Cola India
The profile of CCI can be studies under two heads ie., profile
of Parle (Exports) Pvt. Ltd., and profile and the profile CCI . Parle
(Exports) Pvt. Ltd., entered into a joint venture with Coca-Cola in
1993. The main reason behind Parles entry into this Joint Venture
is that with the entry of two multinational companies, it is difficult
for Parle to retain its Bottling Plants. Before the entry of Pepsis
entry 7 of them have gone to Pepsi and Parle was left with 48
B.U.s. Now if Coca-Cola enters India on its own, then probably
another 10 B.Us may go to it and the result is increase in the area
of operation and parle faces the problem of loss in market share.
Many people were of the opinion that if coke enters India, then
Thums Up will definitely loose its hold in the market. A survey was
organized by A&M in 1994, one year after the launch of coke and
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found that Thums Up is the most powerful soft drinks brand for all
three family members polled.
With increase in the area of operation and with the capacity
of the B.Us remaining same, the availability of parle products may
become a problem in some areas and in some seasons. In soft
drink industry, availability plays a vital role. If this aspect is
overlooked, Parle definitely foregoes its market share in the long
run. So in order to retain its position, Parle entered into a Joint
Venture with Coca-Cola. Parle brands are named as Acquired
brand by Coca-Cola. When we consider the above aspect, we can
say that Ramesh Chauhan, President, Parle (Exports) Pvt. Ltd., has
taken a right step at the right time. Now the companys name is
Coca-Cola India (CCI).
Parle was initially a confectionary company. It manufactured
Biscuits and Chocolates. Parles Glucose Biscuits was a well-known
brand. There was an interesting story behind parles diversification
into soft drinks. Mr. Jayanthilal Chauhan, Father of the President
Chief Mr. Ramesh Chauhan once came on a business visit to
Madras. In Madras, he saw an Artos Soft Drink in retial outlet and
enquired about it. He was surprised to know that it was local brand
in South India. He wondered how a small local brand belonging to
south find a place in a metropolitan city like Madras. He enquired
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about the manufacturer and learnt that the plant was located at
Ramachandrapuram of East Godavari District in Andhra Pradesh.
He came all the way from Madras to R.C.Puram and met Mr.
Padmanabha Raju, the owner of ARTOS. He learned everything
about the soft drinks from him but Mr. Raju refused to give him the
formula to prepare the concentrate. Then Mr. Chauhan came back
to Bombay and turned his attention towards soft drink PARLE-
ORANGE in 1966, packed in 200 ml. Glass bottle. The drink lasted
for over 10-12 years.
After Jayanthilal Chauhan, his two sons Mr. Ramesh Chauhan
and Prakash Chauhan took over his business. Ramesh Chauhan
after his entry, developed the present Franchise system, which was
now under CCI, Ramesh Chauhan entered the industry in 1968.
Before the introduction of Thums Up there was another Cola brand
Parle PEPINO. But it could not stand against the image created by
Coca-Cola. People would not look to another cool drink except
Coca-Cola even after its exit. And more over, the package of
pepino was also not good. So it failed.
CCI operates with the franchise system, there by defining the
area of operation for every franchise holder to whom it sells the
concentrate. The Franchisees buy the concentrate from CCI,
Bombay and mix it with purified, sweet end and processed water,
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then the carbonate and fill it in sterilized bottles and sell them in
the local market.
In India, there are 60 Franchise Units for CCI. In Andhra
Pradesh there are B.U.s under CCI and 3 under Pepsi. The 7
Bottling Units in Andhra Pradesh according to their order of
establishment are :
1. Hyderabad.
2. Vijayawada
3. Visakhapatnam
4. Rajahmundry
(The Franchise under study, S.S.S.Ltd. B.U.. Vemagiri)
5. Secunderabad
6. Nellore
7. Khammam
(under the name of S.S.S.Ltd., B.U., Sathupalli)
The targets regarding sales, marketing inputs are fixed by
CCI to his franchise holder and are followed up throughout the
year. The Marketing Program is handed over to the respective
holder at the beginning of the year.
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The control of CCI over its franchise exists through quality
control, marketing program and production. It plans the
promotional activities, which have to be implemented by the
franchise holders. It directly or indirectly controls each and every
aspect of their operations.
CCIs products according to their year of Introduction to the
market.
BRAND FLAVOUR YEAR OF ENTRY

Gold Spot Orange 1968
Kismat Pineapple 1968
Limca Lemon 1972
Bisleri Soda Soda 1974
Maaza Mango 1976
Thums Up Cola 1978
Maha Cola Cola 1991
Citra Clear Lemon 1991
Coca-Cola Cola 1993
Fanta Orange 1996
Sprite Clear Lime 1998
Table no:3.3
The Coca-Cola Company engages in manufacturing,
distributing and marketing non-alcoholic beverage concentrates
and syrups worldwide. The company also produces, markets, and
distributes juices and juice drinks as well as water products. It
sells beverage concentrates and syrups to bottling and canning
Page | 59
operators, distributors, fountain wholesalers, and fountain retailers.
The companys beverage products comprise bottled and canned
soft drinks and beverages, as well as concentrates, syrups and not-
ready-to-drink powder products. In addition the Coca-Cola
company markets and distributes sports drinks, teas, coffees and
other beverage products. The company was organized in 1886 and
is headquartered in Atlanta, Georgia.
Southerners like their drinks sweet, and for Coca-Cola
Bottling Co. Consolidated (CCBCC), theres nothing sweeter than a
Coke. CCBCC produces and distributes beverages, principally
products of the Coca-Cola Company, mainly in the Southeast. It is
the 2 bottler of Coca-Cola in the US (behind Coca-Cola Enterprises),
serving an 11-state territory, which is home to about 18 million
prospective cola consumers. CCBCC also produces and markets
other beverages, including Dr. Pepper, Seagram drinks and
Sundrop. Coca-Cola products ring up approximately 90% of
CCBCCs Sales. Chairman and CEO Frank Harrison and his family,
together with director Reid Henson, control about 92% of CCBCCs
voting stock.
Coke is it it being the worlds top soft-drink company.
The Coca-Cola Company owns four of the top five soft-drink brands
(Coca-Cola, Diet Coke, Fanta and Sprite). Among its other brands
are Barqs, Fruitopia, Minute Maid, Powerade, and Dasani Water. In
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North America, it sells Groupe Danones spring water brands
(Evian, Dannon and Sparklets).
Coca-Cola sells crush. Dr. Pepper and Schweppes outside
Australia, Europe and North America. The firm sells about 400
drink brands, including coffees, juices, sports drinks and teas in
about 200 nations. Although it does no bottling itself, the company
owns about 36% of Coca-Cola Enterprises, the Largest Coke bottler
in the world.
COCA COLA WORLD WIDE
The Coca-Cola Company exists to benefit and refresh
everyone it touches. Founded in 1886, our company is the worlds
leading manufacturer, marketer and distributor of non-alcoholic
beverages concentrates and syrups, used to produce nearly 400
beverage brands. Our corporate headquarters are in Atlanta, with
local operations in over 200 countries around the world. For more
than 115 years the Coca-Cola Company and its bottlers have
issued a phenomenal amount of colorful, fanciful and beautiful
advertising and promotional items that captured the cultural spirit
and artistic trends of their times.
TRADEMARKS
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Our trademarks are our most valuable assets. The
trademark Coca-Cola was registered with the U.S. Patent and
Trademark Office in 1893, followed by Coke in 1945. The unique
contour bottle, familiar to consumers everywhere, was granted
registration as a trademark by the U.S. Patent and Trademark
Office in 1977, an honor awarded few other packages.
In 1982, the Coca-Cola Company introduced Diet Coke to U.S.
Consumers, marking the first extension of the Companys most
precious trademark to another product. Later years saw the
introduction of additional products bearing the Coca-Cola name,
which now encompasses a powerful line of cola products. Today,
the worlds favorite soft drink, Coca-Cola, is one of the worlds best
and most admired trademarks, recognized by more than 90
percent of the worlds population.
BIRTH OF A REFRESHING IDEA
John Stitch Pemberton first introduced the refreshing taste of
Coca-Cola in Atlanta, Georgia. It was May of 1886 when the
pharmacist concocted a caramel-colored syrup in a three-legged
brass kettle in his backyard. He first Distributed the new product
by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy.
For five cents, consumers could enjoy a glass of Coca-Cola at the
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soda fountain. Whether by design or accident, carbonated water
was teamed with the new syrup, producing a drink that was
proclaimed Delicious and Refreshing. John Pembertons partner
and bookkeeper, Frank M.Robinson, suggested the name and
penned Coca-Cola in the unique flowing script that is famous
worldwide today. Mr. Robinson thought the two Cs would look
well in advertising. In 1886, sales of Coca-Cola averaged nine
drinks per day.
That first year, Pemberton sold 25 gallons of syrup, shipped
in bright red wooden kegs. Red has been a distinctive color
associated with the number one soft drink brand ever since. For
his efforts, Pemberton grossed $50 and spent $ 73.96 on
advertising. By 1891, Atlanta entrepreneur Asa G. Candler had
acquired complete ownership of the Coca-Cola business. Within
four years, his merchandising flair helped expand consumption of
Coca-Cola to every state and territory. In 1919, the Coca-Cola
Company was sold to a group of investors for $25 million. Robert
W. Woodruff became President of the Coca-Cola Company in 1923,
and his more than six decades of leadership took the business to
unrivaled heights of commercial success, making Coca-Cola an
institution the world over.
ADVERTISING
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Advertising has played an important role in the success of
our products since our First Newspaper Ad in 1886, which read
Coca-Cola, Delicious! Refreshing! Exhilarating!
Invigorating! The Company uses advertising to trigger desire as
often and in as many ways as possible. Throughout the years,
slogans for Coca-Cola have always been memorable. Here are
some highlights :
2000 - Coca-Cola Enjoy
1993 - Always Coca-Cola
1990 - Cant Beat the Real Thing
1989 - Cant Beat the Feeling
1986 - Red, White and You
1982 - Coke Is It
1976 - Coke Adds Life
1971 - Id Like to Buy the World a Coke
1969 - Its the Real Thing
1963 - Things Go Better with Coke
1959 - Be Really Refreshed
1944 - Global High Sign
1942 - Its the Real Thing
1936 - Its the Refreshing Thing To Do
1929 - The Pause That Refreshes
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Fine illustrations by noted artists, including Norman
Rockwell and N.C. Wythe, were the hallmark of early
campaigns in premier magazines. Artist Haddon Sundbloms
Portraits for holiday ads, which began in the 1930s, helped
mould the national image of a red-suited Santa Claus. Fresh,
Creative and Tasteful, Advertising images for Coca-Cola have
always set a high standard of quality for other products around the
world. The Company recognizes that Coca-Cola belongs to the
billions of consumers in every corner of the globe who have chosen
it as their favorite soft drink. Our advertising reflects that special
relationship between consumers and the simple moments of
pleasure they have come to associate with Coca-Cola.
Coca-Cola is..
The Symbol of Quality
Customer and Consumer Satisfaction
A Responsible Citizen of the World
GLOBAL BUSINESS
Entering the last quarter of the 20 th century, the deep
emotional bond between Coca-Cola and its consumers grew even
more powerful and more global. In 1971, young people from
around the world gathered on a hilltop in Italy to sing Id Like to
Buy the World a Coke, a counterpoint to turbulent times. This was
also a glimpse into the Companys future: an expanding global
Page | 65
presence and an even closer attachment to the worlds most
cherished trademark.
The power and prestige of Coca-Cola were exemplified in
1988, when three independent worldwide surveys conducted by
Landor & Associates confirmed Coca-Cola as the best-known, most-
admired trademark in the world.
COCA-COLA IN INDIA
After a 16-years absence, Coca-Cola returned to India in
1993. The Companys presence in India was cemented in
November that year in a deal that gave Coca-Cola ownership of the
nations top soft-drink brands and bottling network.
Coca-Cola India has made significant investments to build
and continually improve its business in India, including new
production facilities, wastewater treatment plants,
distribution systems and marketing equipment.
During the past decade, the Coca-Cola system has invested
more than US $ 1 Billion in India
In 2003, Coca-Cola India pledged to invest a further US $
100 Million in its operations.
Coca-Cola business system directly employs
approximately 6,000 local people in India.
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In India, we indirectly create employment for more
than 125,000 people in related industries through out vast
procurement, supply and distribution system.
Virtually all the goods and services required to produce and
market Coca-Cola locally are made in India.
The Coca-Cola system in India comprises 25 wholly-owned
company owned bottling operations and another 24
franchisee-owned bottling operations.
A network of 21 contract-packers also manufactures a
range of products for the Company.
The complexity of the Indian market is reflected in the
distribution fleet, which includes 10-tonne trucks, open-bay
three-wheelers that can navigate the narrow alleyways of
Indian cities, and trademarked tricycles and pushcarts.
PRODUCTS & QUALITY :
Leading Indian Brands Thums Up, Limca, Maaza, Citra
and Gold Spot join the Companys international family of brands
including Coca-Cola, Diet Coke, Sprite and Fanta, plus the
Schweppes product range.
Our Kinley Water Brand was launched in 2000.
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Annual per capital consumption of soft drinks in India is nine
8-ounce servings.
In early 2003, Coca-Cola India collected Advertiser of
the Year and Campaign of the Year awards for the
Thanda Matlab Coca-Cola all-media campaign.
The Company ranking up Firsts in the introduction of
Canned and PET soft drinks, vending machines and
backpack dispensers for crowds of cricket supporters.
The Coca-Cola system adheres not only to national laws on
food processing and labeling, but also to our own strict
standards for exceptional quality.
In everything we do, from the selection of ingredients to the
production of our beverages and their delivery to the market
place, we use our specialized Quality Management
System, The Coca-Cola Quality System, to ensure that we
are offering consumers only the highest quality products.
We monitor our success through our customer and consumer
feedback and our in-trade monitoring programs, and this
information enables us to continuously improve our already
demanding systems.
While The Coca-Cola Company is a global company with
some of the worlds most widely recognized brands, the
Coca-Cola business in India, as in each country where we
operate, is a local business. Our beverage.
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SALES PROMOTION
Sales Promotion includes tools for consumer promotion
(Samples, Coupons, Cash Refund offers, Prices off, Premiums,
Prizes, Patronage Rewards, Free Trails, Warranties, Tie in promotion
(Price off, advertising and display allowances, and free goods),
business and sales force promotion (trade shows and conventions,
contests for sales representatives and specialty advertising).
Sales Promotion tools are used by most organizations,
including manufacturing distributors, retailers, trade associations,
and non profit organizations. A decade ago, the advertising to
sales promotion ration was about 60:40. Today in many
consumer packaged-goods companies, sales promotion
expenditures have been increasing as a percentage of budget
expenditure annually for the last two decades.
Several factors contribute to the rapid growth of sales
promotion, particularly in consumer markets, Internal factors
include the following : Promotion is now more accepted by the top
management as an effective sales goal: more product managers
are qualified to use sales promotion tools: and are under greater
pressure to increase the current sales, External factors include the
following: the number of brands has increased: competitors use
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promotion frequently: many brands are seen as similar: consumers
are more price-oriented, the trade has demanded more deals from
manufactures: and advertising efficiency has declines because of
rising costs, media clutter and legal restraints.
In general, large scale advertising campaign go with the soft
drink industry. Television advertising generally ports way an
adventurous mood. Hoardings and printer advertisements convey
similar ideas.
MAJOR DECISION IN ADVERTISING
Marketing Management must make five important decision
when developing and advertising programs. Setting objectives :
The first step in developing an advertisement program is to set an
advertising objective. These objectives should be based on part
decisions about the target market, positioning and marketing mix.
The market positioning and mix strategy defines the job that
advertising must be doing in the total marketing program.
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Many communication and sales objectives can be set for
advertising. Cooley lists fifty possible advertising objectives in his
well-known Defining Advertising goals for measured advertising
results. He outlines a method called DAGMAR (after the books
title) for turning advertising objectives into specific measurable
goals.
An Advertising objectives into specific communication that is
to be accomplished with specific target evidence during a specific
period of time. Advertising objectives can be classified by purpose
whether their aim is to inform, persuade or remind.
Information advertising is used heavily at the time of
introducing a new product category, when the objective is to build
primary demand. Thus producers of compact disk players first
usually, inform their consumers about the sound and then go to
informing them benefits or a CD.
Some persuasive advertising has become comparison
advertising which compares on brand directly or indirectly with one
or move other brands. For example in its classic comparison
campaign. Avis positioned itself against market leading hertz by
claiming, We are number two, so we try harder. Procter and
Gamble positioned scope against Listerine, claiming that mint
fresh scope fights has breathe and does not give medicine
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breath, comparison advertising has also been use for such
products as soft drinks, computers, deodorants, toothpastes,
automobiles, wines and pain relievers.
Reminder advertising is important for native products it
keeps consumers thinking about the product extensive. Coca-Cola
ads on television are designed to remained people about Coca-
Cola, not to inform or persuade them.
Setting the Advertising Budget
After determining its advertising objective the company can
next set its advertising budget for each product. The role of
advertising is to effect demand for a product the company wants to
spend the amount needed to achieve the sales goals. Four
commonly used methods for setting the advertising budget are
discussed below. Here we describe some specific factors that
should be considered when setting the advertising budget.
Stages in the Product Life Cycle : Now products typically
need large advertising budgets to build awareness and to
gain consumers trial, Matured brands usually require lower
budgets as a ratio to sales.
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MARKET SHARE : High market share brands usually need
more advertising. Building market or taking share from
competitors requires large advertising spending than simply
maintaining current share.
Competition and Culture: In a market with many competitors
and high advertising spending, a brand must advertise more
heavily to be headed above the noise in the market.
Advertising Frequency : When many repetitions are needed
to put across the brands messages to consumers, the
advertising budget must be larger.
Product Differentiations : A brand which closely resembles
other brands in its product class Cigarettes, Beer, Soft Drinks
requires heavy advertising to get it apart. When the product
differs greatly from competitors advertising can be used to
point out the difference to the consumers.
CREATING THE ADVERTISING MESSAGE
A large advertising budget does not guarantee a successful
advertising campaign. Two advertising can spend the same
amount on advertising and yet can have different results. Studies
have shown that creative advertising messages are more
important advertising success that amount spends on it.
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MESSAGE GENERATION
The next after allocating ad-budget is message generation
the message about the product should be very clear and attractive
which have an impression on the consumers. The captions and
punch lines of Coca-Cola are very attractive and have an impact on
the consumer psychology.
CHOOSING MEDIA
The media planner has to know the reach, frequency and
impact of each media to be utilized. The major types, in order of
their advertising volume, are news papers, televisions, direct mail,
radio, magazines. To advertise its product apart from hoardings in
main junctions, signage, danglers in retail outlets the bottlers vans
are also painted with Coca-Cola logo and message of the product,
which provides (Opportunity to see) OTS to the consumers.
ADVERTISING SPECIALITIES
Advertising specialties are useful articles imprinted with an
advertisers name given as gifts to the consumers. Typical items
include pass, Calendars, Key chains, T-Shirts, Caps and drinking
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glasses. U.S. Companies spend more than $ 4 Billion each year on
advertising specialties. Such items can be very effective. In a
vacant study, 63% of all consumers surveyed were either carrying
or wearing an advertising specialty items.
THEORETICAL FRAMEWORK OF SALES

COMPARISION AND SALES PROMOTION
INTRODUCTION:
The sales comparison is one of the three major groupings
of valuation methods, called the three approaches to value,
commonly used in real estate appraisal. This approach compares a
subject property's characteristics with those of comparable
properties which have recently sold in similar transactions. The
process uses one of several techniques to adjust the prices of the
comparable transactions according to the presence, absence, or
degree of characteristics which influence value. As such, all sales
comparison approach methods are variations on hedonic-type
measurements, which determine the value of something as the
sum of the value of the various components which contribute
utility.
Units of Comparison
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The SCA relies on the assumption that a matrix of attributes
or significant features of a property drive its value. For examples,
in the case of a single family residence, such attributes might be
floor area, views, distance to amenities, number of bathrooms, lot
size, age of the property and condition of property.
Economic Basis
The sales comparison approach is based upon the principles
of supply and demand, as well as upon the principle of substitution.
Supply and demand indicates value through typical market
behavior of both buyers and sellers. Substitution indicates that a
purchaser would not purchase an improved property for any value
higher than it could be replaced for on a site with equivalent utility,
assuming no undue delays in construction
Sales promotion:
Sales promotion includes tools for consumer
promotion(samples, coupons, cash refund offers, price off,
premiums prices patronage rewards, free trails, warranties, Tie in
promotion (price off, advertising and display allowances, and free
goods),business and sales forces promotion (trade shows and
conventions, contests for sales representatives and speciality
advertising).
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Sales promot6ion tools are used by most organizations,
including manufacturing distributors, retailers, trade associations,
and non profit organizations.A decade ago, the advertising- to-
sales promotion ration was about 60:40. today in many consumer
packaged-goods companies, sales promotion expenditures have
been increasing as a percentage of budget expenditure annually
for the last two decades. Several factors contribute to the rapid
growth of sales promotion, particularly in consumer markets.
Internal factors:
They include the following: promotion is now more accepted
by the top management as an effective sales goal: more product
managers are qualified to use sales- promotion tools: and are
under greater pressure to increase the current sales.
External factors:
They include the following the number of brands has
increased competitors use promotion frequently many brands are
seen as similar consumers are more price-oriented, the trade has
demanded more deals from manufactures and advertising
efficiency has declined because of rising costs, media clutter and
legal restraints.
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Sales promotion is another important component of the
marketing communication mix. It is essentially a direct and
and coordinate them and make them effective, such as displays,
shows , demonstrations and other non-recurrent selling efforts not
in the ordinary routine.
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Definition of sales:
Sales promotion consists of a diverse collection of
incentive tools, mostly short-term, designed to stimulate quicker
/or greater purchase of a particular product by consumers and
traders
---.Kotler
Sales promotion represents those marketing efforts that
are supplementary in nature which are conducted for a limited
period of time and seek to induce buying.
..Davis
IMPORTANCE OF SALES PROMOTION:
In a competitive market, sales promotion, sales promotion
comes handy to a marketer, to solve of his short-term hurdles.
Short term because, the impact of sales promotion measures are
not that durable and lasting like the results obtained through
advertising and personal selling. Sales promotion, by and large, is
understood and practiced as a catalyst, and a supporting facility to
advertising and personal selling.
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Objectives of sales display:
The following are the major objectives of any sales display
It shows the products or services to the potential customer.
It gives an idea about every detail of the product such as
variety, quality, size, colour, etc.
It helps the customer to see and examine the goods before
they actually buy them.
Sales display appeals visually to the prospects and induces
them to purchase.
Sales display reminds the customers about their need and
subsequently they are attracted to buy
Wholesalers and retailers are satisfied by displays tactics
undertaken by manufacturers and they buy the goods.
TYPES OF SALES DISPLAYS:
There are three forms of display:
I. Interior Display includes on the floor, walls, in show cases and
show boxes. Goods should be neatly arranged inside the retail
outlet. In this type of display, proper lighting and colour
matching should also be ensured so that the overall effect of
interior display becomes pleasing and attractive.
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II. Exterior display is the display of products in the show window
of the retail outlet. It creates that long lasting first impression. It
also seeks attention of passers-by as well as prospects and
invites them to enter the establishment. Window dressing is one
example of exterior display.
III. Other displays like showrooms, show cases, glass boxes,
cupboards, etc. from part of display. They are used only for sales
display but also as a publicity device for enhancing sales. The
success of showrooms and show cases depends, to a great
extent, on the location, decoration, lighting and such other
devices.
There are various classes of sales display of which the following are
important:
1. Product unit display : such unit displays use merchandise
that is identical in size, colour, shape, use, etc. this type of display
is used for bags, readymade garments, shirts, etc. efficient
merchandising is of interest to both the dealer and the
manufacturer.
2. Life-style displays: using the market segmentation approach,
life-style display are used
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ORGANISING SALES PROMOTION CAMPAIGNS:
Though almost all companies resort to sales promotion
techniques, only some of them go about the job in planned way.
Others mostly view sales promotion as a weapon that can be taken
out just like that and used in emergent situation. Sales promotion
yields the intended results only when it meets certain basic
requirement. The conditions for success of sales promotion are
discussed below.
1. Identifying the requirements:
The first requirement is to identify the specific requirement of
the firm in resorting to sales promotion. Earlier in this chapter, we
identified the broad contexts in which sales promotion techniques
can be employed. The find out its need-is it to bring in substantial
extra sales immediately is it to offload accumulated stock is it to
regain loosing consumer interest in the product is it to enlist some
support for the advertising effort that is already on.
2. Identifying the right promotion programme:
The next step is to identify the apt programme Earlier, we
discussed the different tools available for sales promotion. The firm
has to select the programme suitable to the current need and
situation. Should it go in for product demonstration or free samples
of the product or should it go in for a large scale consumer contest.
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The choice of the programme will be primarily decided by the
resources available with the firm.
3. Enlisting the involvement of salesmen:
Often, sales promotion programme are conceived and
planned at the head office of the firm and implemented in a hurry
without enlisting the cooperation and involvement of the field sales
people. For the campaigns to succeed, it is essential that the
salesmen be briefed on the context and content of the programme.
. They have also to be informed of their roles in the conduct of
the programme, given detailed information / working guides, and
be told what they are expected to do at different stages of the
campaign.
4. Enlisting the support of the dealers (trade):
It is also essential to enlist the support of the dealers in any
large-scale sales promotion venture. Since a major part of the
activity to take place around the dealership, the campaign may
flop if the dealer is not motivated to support it . the pop materials
and the product under campaign will get the required prominence
only the dealer so desires. While organizing consumer contests,
most companies in corporate dealer contests and dealer
motivation programmes.
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5. Enlisting the advertisement organizing sales
promotion campaigns
Though almost all companies resort to sales promotion
techniques, only some of them go about the job in a planned way.
Other mostly view sales promotions a weapon that can be taken
out just like that and used in an emergent situation. sales
promotion yields the intended results only when it meets certain
basic requirements. The conditions for success of sales promotion
are discussed below.
Identifying to the requirements:
The first requirement is to identify the specific requirement of
the firm in resorting to sales promotion. Earlier in this chapter, we
identified the broad contexts in which sales promotion techniques
can be employed. The firm most find out its need to bring in
substantial extra sales immediately us it to offload accumulated
stock is it to regain loosing consumer interest in the product it is to
enlist is it to some support for the advertising effort that is already
on.
Identifying the right promotion programme:
The next step is identify the at programme. Earlier, we
discussed the different tools available for sales promotion. The firm
has to select the programme suitable to the current need and
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situation. Should it go in for product demonstration or free samples
of the product or should it go in for a large scale consumer
contest the choice of the programme will be primarily decided by
the resources available with the firm .a big consumer contest
cannot be organized send implemented unless the firm can
command substantial resources and organizing capacity.
Enlisting the involvement of salesmen:
Often, sales promotion programmes are conceived and
planned at the head office of the firm and implemented in a hurry
without enlisting the cooperation and involvement of the field sales
people. For the campaigns to succeed, it is essential that the sales
men be briefed on the context and content of the programmed
agencies
Support
The advertisement agencys support is also essential for the
successful working of a sales promotion venture. Since a major
part of the activity has to take place around the dealer shop, the
campaign may flop if the dealer is not motivated to support it. The
POP materials and the product under campaign will get the
required prominence only if the dealer so desires.
Enlisting the advertisement agencys support:
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The advertisement agencys support is also essential for the
successful working of a sales promotion campaign. Carrying out a
sales promotion campaign is as challenging as conducting an
advertising campaign. In fact, for an advertisement campaign,
quite often the results are readily available to be measured.
Maintaining the tempo:
Sometimes the sales promotion campaigns are lunched with
great publicity and fanfare. But subsequently the tempo of the
programme is allowed to view out. It is essential that the initial
tempo built around the programme be maintained.
Coordination with other elements of promotion:
Sales promotion programmes yield the best results when
they are well coordinated with the other elements of promotion-
advertising, personal selling and publicity. Sales promotion
programme cannot be run totally independent of theses major
promotion variable. When used in combination with them, sales
promotion stands a better chance of meeting its aims.
Choosing a push or a pull strategy of sales promotion:
Push strategy:
A sales promotion programme , aimed primarily at is called
push strategy . the marketer will promote to his products heavily
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among distributors, wholesalers and retailers. At the lost stage, the
retailer promotes them among consumers. A push strategy usually
involves a lot of personal selling and sales promotion including
contests for sales people and display at trade shows.
Pull strategy:
With a pull strategy, promotion is directed at the ultimate
consumers. The objective is to motivate them to ask retailers for
the products. Strategy relies heavily on advertising and various
forms of sales promotion such as samples free gifts etc.
FACTORS INFLUENCING SALES PROMOTION:
Target market
Nature of product and services
Stage of the product life cycle
Budget available for promotion.
Tools of sales promotion:
Prize scheme:
Prize scheme are an important method of sales
promotion. A prize scheme is designed for both retailers/
customer and the dealears to make the scheme effective, it
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should be advertised through packages or retailers. The latest
method of advertising is through the press, posters, etc. For
dealers, sales competitions are arranged, prizes are announced
or special offers are made if they show a substantial progress in
sales.
Correspondence :
This could be an effective device for sales promotion a
specialized correspondence section will be more advantages as
it can communicates very effective with prospects as well as
potential customer and established for it is better equipped to
write letters.
Catalogues:
These play dominant role both advertising and sales
promotion campaigns. They are largely used when a manufactures
different types of products, distinguishable by size, shape and
others features. It is from the catalogue files that one can get
information required about different products of a particular
manufacturer. The following purposes can be served by catalogues.
To get orders
To make the customers aware about the specification
To provide detailed information
To solicit products sales
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Advertising Novelties:
Small, Interesting, or personally useful items, etc. can be used
for sales promotion. To be effective, an advertising novelty should
meet the following requirements.
Origination of display contests among retailers
Publicity through newsletters mentioning retailers name.
Provision of display good and fixtures at special subsidiaries
prices.
Photo-flashing of retailers display to bother retailers.
Cooperative advertising and sales promotion, i.e., promoting
the retail store as well as the manufacturers product on cost-
sharing basis.
SALE PROMOTION OBJECTIVES:
Sales promotions are increasingly being used to accomplish
an ever-expanding list of marketing objectives. The companys
marketing objectives and strategies influence the development of
sales promotion objectives and strategies. There can be a number
of sales promotion objectives, depending upon the firms policies,
marketing objectives, nature of the product and its stage in
product life cycle, level of existing and anticipated competitive
activity, consumer response pattern economic conditions and the
target group(consumers, traders, or sales force) etc.
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Sales promotion objectives could be either proactive or
reactive are
To gain additional market share or additional revenue
To expand the target market
To develop favorable consumer experience with the product
To add extra value to the product and develop brand
franchise
Reactive sales promotion objectives are developed in
response to some un favorable market situation, or where
the objectives are essential short term, such as the following.
In response to competitive moves
When excessive inventory piles up
To generate short term cash
When the decision is to discontinue a product, or close down
the business.
In a dynamic and rapidly changing marketing environment,
unfavorable conditions may appear with little or not no warning. It
is difficult for the management to anticipate and plan for such
exigencies: however, hasty decisions regarding sales promotion
objectives may sometimes produce adverse effects for the long-
run.
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An important area that concerns sales promotion objectives is
directly related to the specific promotional techniques to be used.
The techniques could be those where the measurement of result is
straight forward, or difficult to measure. For example, it is easy to
measure the impact of discount offer on sales, but it is very difficult
to measure the impact of premium on the perceived value of the
promoted brand.
The company can use sales promotion to achieve many
objectives: however, every offer must start by being specific as to
what objectives are intended to achieve. According to Schultz and
Robinson in sales Promotion Management (Chicago: Crain Book,
p.149 1982.), the objectives should be:
i. specific
ii. Measurable
iii. clear and concise
iv. practical and realistic
v. affordable, and
vi. attainable.
Perhaps, the most difficult part in managing sales promotion is
to decided which particular sales promotion tools should be used
for achiving the specific objectives, which of these tools can be
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and should combined to produce a synergistic effect, and can
these be delivered to the target audience, that is or the sales force.
Some of the important sales promotion objectives are
mentioned below, and the more important ones have been
discussed briefly.
Increase sales volume
Speed up the sales slow moving products
To check the fluctuation in sales
Attract new customers
Launch new product and increase trail
Encourage repeat purchase
Clearance of excessive inventories
Motivate dealers
Encourage dealers to participate in display and sales
contests
To gain advantageous shelf-space and increase store traffic
Improve relationship with dealers
To block competitors move
Motivate sales force
To supplement advertising and personal selling efforts and
customers attention from price.
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SALES PROMOTION SYSTEM AT SRI SARVARAYA SUGARS
Pvt. Ltd., BOTTLING UNIT:
The parent company HCCBPL Mumbai has divided India as
per geographical boarders with specific areas allotment and named
them as franchise area. If brief, HCCBPL will control boot
marketing as well as quality control activity.
Marketing channels are the most complicated phenomena
encountered in the study of Marketing. They encompass elaborate
behavioral systems that usually involve many decisions. Markets
often extend over a wide geographical area.
East Godavari has been divided into 36 depots of Coca-Cola
soft drinks. In each area, the company has identified certain high
volume outlets selling their soft drinks in Theatres, Pan Shops,
Hotels, Restaurants, Departmental Stores, Sweet Shops
etc.,
Each area has been divided into different routes and each
route is appointed with a sales man and a driver. Each salesman
sells the given quantity of soft drinks everyday with the help of two
loaders. Each of the area is under the control of an in order to
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promote sales and smoothen the distribution. All the supervisors
are responsible to the sales manager for their performance.
The marketing territory of the company has 3 districts. In
these districts 70 wholesalers have been appointed to distorting
Coke uninterruptedly in the market. But distribution of bottled
soft drinks is not an easy task. It needs proper planning, resources
and controlling.
Packing of product is of utmost importance in the sale of soft
drinks. So, the need for Extensive distribution of product, with as
many retail outlets as possible, is the key to become a market and
grab more share of the market.
Secondly, the other type of distribution is Intensive and as
the very world signifies certain typical outlets are totally purchased
for maintaining only brand ie., Coke without any competition. This
is mostly followed in theatres, parlors, Bus complexes, Restaurants
wherever it is possible as a monopoly countries for which an
additional margin is allowed by the company to the outlet through
the dealer as compensation. The need for effective physical
distribution is more so important in bottled soft drinks because
every minute in the business counts.
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In other words, if a day lost for lack of stock means loss of
more than two days business. Sale of soft drinks is something
unique and the demand changes depending on seasonally and
temperatures.
Hence the need to maintain a systematic operational system
is more important in soft drinks business. A well-trained and
experienced sales person should visit the retail outlets everyday.
This kind of continuous report with retailers and feed back to the
unit is greatly helpful of emptied bottles in time.
AGENCY ACTIVITY:
Agency Activity comprises the effectiveness of whole sale
dealer in terms of his personal relation with retailers, effective
distribution at the areas allotted maintaining sufficient funds to
organize the agency, his relation with the field staff, capability in
giving the market information and counter activity against
competitors.
Periodical reviews are made by the field staff to evaluate the
agency activity and recommendations are made depending on the
necessity to develop the agency. To motivate the agency towards
sales and various types of incentive other than regular,
commission are offered as detailed below.
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1. Quarterly commission on achieving the target.
2. Additional commission for possessing mechanized
distribution input.
3. Incentive on achieving the inputs target.
4. Subsidy on ark confession of mechanized vehicles.
5. Dealers of the district award to create complexity spirit
among the agency.
1. BRANDS DEALING IN THE OUTLET
Company Brands
Coca Cola 5.95
Pepsi 4.50
Table no: 5.1
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Chart no: 5.1
Interpretation:
The above table and graph shows that Out of 100
respondents, outlets which I surveyed in the Amalapuram Division
Market 5.95 Brands of Coca Cola and 4.5 Brand of Pepsi are found
in the retail outlets out of 7 brands. Finally majority of respondents
are strongly agreed with above statement.
2. Do you have Supply In Time?
No of
Sc Choic Responde Percenta
no e nis ge
1 Yes 75 75%
2 No 25 25%
Total 100% 100%

Table no:5.2
Page | 97
Chart no: 5.2
Interpretation:
The Above Table and Graph Shows that out of 100
Respondents, 75 Respondents Are strongly Agree in With the
Above Statement 25 Respondents are agree With the no, Finally
Majority of Respondents Are Strangely Agree With Above
Statement.
3. Promotional Activates Offered By Which Company is
Good ?
No of
Sc Responde Percenta
no Choice nts ge
1 Coco-Cola 55 55%
Page | 98
2 Pepsi 45 45%
Total 100 100%

Table no:5.3
Chart no:5.3
Interpretation:
The Above Table and Graph Shows that out of 100
Respondents, 55 Respondents Are strongly Agree in With the coca-
cola, 25 Respondents are agree With the Pepsi, Finally Majority of
Respondents Are Strangely Agree With Coca-cola.
4. Top brands consumed by the outlet For the Coca
-Cola?
No of Percenta
Sc no Choice Respondents ge
Page | 99
1 Maaza 45 45%
2 Sprite 42 42%
3 Kinly 13 13%
Total 100 100%

Table no:5.4
Chart no: 5.4
Interpretation:
The above Table And Graph Shows That Out Of 100
Respondents, 45 respondents Are strongly Agreeing With The
Maaza , 42 Respondents Are Agree with The Sprite And 13
Respondents Are Agree With The Kinly Finally Majority Of
Respondents Are Strongly Agree With Above Statement.
5. Top brands consumed by the out let for Pepsi?
Page | 100
No of
Respondent percenta
sc no Choice s ge
1 Slice 42 42%
2 7Up 47 47%
Aquafin
3 e 11 11%
Total 100 100%

Table no: 5.5
Chart no: 5.5
Interpretation:
The above table and graph shows that out of 100
Respondents,47 respondents are strongly agreeing with the 7Up,42
respondents are agreeing with the Slice ,11 respondents are agree
with the Aquafine. Finally majority of respondents are strongly
agreed with above statement.
Page | 101
6. TOTAL DAILY SALES OF AN OUTLET
Table No 5.6
Company Sale
s in
Crat
es
Coca Cola 2.45
1.03
Pepsi
Chart no:5.6
Interpretation :
The above table and graph shows that Out of 100
respondents, which I surveyed in the Amalapuram Market Division
there are 2.45 crates of Coca Cola and 1.03 crates of Pepsi drinks
Page | 102
are averagely consumed. Finally majority of respondents are agree
with above statement.
7. Which company gives you the maximum benefits in the
customer?
No of percenta
S. no Choice Respondents ge
coca-
1 cola 37 37%
2 Pepsi 32 32%
3 both 31 31%
Total 100 100%

Table no:5.7
Chart no:5.7
Interpretation:
Page | 103
respondents, 37 Respondents are strongly agreeing with the coca-
cola,32 Respondents are agree with the Both. Finally majority of
respondents are strongly agree with above statement.
8. Fast moving brands in the outlet?
Company No of
respondent Percentag
s e%
coca-cola 69 69%
Pepsi 31 31%
Total 100 100%
Table no:5.8
Chart no:5.8
Interpretation:
Page | 104
Respondents,69 respondents are strongly agreeing with the Coca-
cola,31 Respondents are agreeing with the Pepsi. Finally majority of
the respondents are strongly agree with above statement.
9. Which reasons to sale in coca-cola?
No of
Responde percenta
S. no Reasons nts ge
1 Brand image 21 21%
2 Quality 26 19%
3 Quantity 19 26%
4 All 34 34%
Total 100 100%

Table no: 5.9
Page | 105
Chart no:5.9
Interpretation:
The above table and graph shows that of 100
Respondents,34 Respondents are strongly agreeing with the All ,26
respondents are agreeing with the Quantity, 21 respondents are
agreeing with the Brand image and 19 respondents are Agree with
the quality. Finally majority of respondents are strongly agree with
above statement
10. After sale services provide by the company?
No of
Respondent
S. no Reasons s percentage
1 Good 35 35%
2 Bad 19 19%
3 average 46 46%
Total 100 100%

Table no: 5.10
Page | 106
Chart no: 5.10
Interpretation:
Respondents, 46 respondents are strongly agreeing with the
Average, 35 respondents are agreeing with the Good and 19
Respondents are agree with the Bad. Finally majority of
11.what is the main source of information regarding the
soft drinks?
No of
Responde
S. no Reasons nts percentage
1 TV 38 38%
2 Radio 8 8%
3 News paper 29 29%
Page | 107
Promotional
4 program's 25 25%
Total 100 100%

Table no:5.11
Chart no:5.11
Interpretation:
respondents,38 respondents are strongly agree with the TV, 29
respondents are agreeing with the News paper,25 Respondents are
agreeing with the promotional programs and 8 Respondents are
agree with the Radio. Finally majority of respondents are strongly
agree with above statement.
12.Whether the advertisement of the company help to
promoted the sales?
No of
Responde percenta
S. no Reasons nts ge
Page | 108
1 Yes 89 89%
2 No 11 11%
total 100 100%
Table no:5.12
Chart no: 5.12
Interpretation:
respondents, 89 Respondents are strongly agreeing with the Yes
and 11 Respondents are agreeing with the No. Finally majority of
13.Duration of sales supervisor visit your shop?
Reaso No of percenta
S. no ns Respondents ge
Page | 109
1 weekly 45 45%
15 days
2 f 38 38%
3 month 17 17%
Total 100 100%

Table no:5.13
Chart no:5.13
Interpretation:
Respondents,45 Respondents are strongly agreeing with the
Weekly,38 Respondents are agreeing with the 15 days in a month
and 17 Respondents are agree with the Month. Finally majority of
respondents are strongly agreed with above statement.
14.Trade schemes offered by which company are good?
Page | 110
No of
S. no Reasons Respondents percentage
1 coca-cola 31 31%
2 pepsi 28 28%
3 Both 41 41%
Total 100 100%

Table no:5.14
Chart no:5.14
Interpretation:
Respondents,41 Respondents are strongly agreeing with the Both
of the products, 31 respondents are agreeing with the Coca-cola
Page | 111
and 28 respondents are agree with the Pepsi. Finally majority of
respondents are strongly agreed with above statement.
15.Are you satisfy with the present distribution system?
Reason No of percenta
S. no s Respondents ge
1 Yes 83 83%
2 No 17 17%
Total 100 100%

Table no:5.15
Chart no:5.15
Interpretation:
Respondents, 83 Respondents are strongly agreeing with the
Yes,17 Respondents are agree with the NO. Finally majority of
Page | 112
16.Are they charging the same price for the same dealers?
1 Yes 67 63%
2 No 33 33%
Total 100 100%

Table no:5.16
Chart no:5.16
Interpretation:
Page | 113
Respondents,66 Respondents are strongly agreeing with the Yes
and 34 Respondents are agreeing with the NO. Finally majority of
17.Do you face any market problem regarding Coca-cola
company?
1 Yes 42 42%
2 No 58 58%
Total 100 100%

Table no:5.17
Page | 114
Chart no:5.17
Interpretation:
respondents, 58 respondents are strongly agreeing with the No and
42 Respondents are agreeing with the Yes. Finally majority of
18. After sales providing the service?
No of percenta
S. no Reasons Respondents ge
very
1 good 15 15%
2 Good 24 24%
satisfact
3 ory 61 61%
Page | 115
Total 100 100%
Table no:5.18
Chart no:5.18
Interpretation:
The above table and graph and shows that out of 100
Respondents,61 Respondents are strongly agreeing with the
Satisfactory,24 Respondents are agreeing with the Good and 15
respondents are agree with the very good. Finally majority of
FINDINGS FROM THE STUDY
AMONG 100 RETAILERS RESPONDS:
Most of the retailers complained that promotional schemes
were being communicated to them in the last minute of time.
Page | 116
Most of the retailers complained about non-availability or
some flavors.
Service to Rural Areas most of the distributors are servicing
enough to rural market demand and the schemes are not
communicating properly in rural areas.
Most of the respondents are satisfies with the sales
promotion of Coca Cola Company.
Consumers are rating the Coca Cola as better choice and
they are giving more priority to these products rather than
the competitive products.
The performance of the company Representative is not
satisfactory mode in solving the Retailers problem and delay
in work.
The company is not providing more point of purchase
material including Visi Coolers, banners, glow sign boards
etc.,
Customers said Pepsi Company is giving offers, Coca-Cola
company is not giving offers.
SUGGESTIONS FOR THE STUDY
Page | 117
Company Top Management should insist that the distribution
work should be assigned who covers a fixed number of retail
outlets daily to each sales man.
The Company Management should reduce the number of
retail outlets what a single sales person covers during a day.
At present this figure is 250, this should be reduced to
around 200 in order to make the sales person to spend more
time with the retailers.
Distributors may be invited for meeting and given some
trainings regarding marketing of Coke products and to
maintain better relationships with management or customer.
The company may also reconsider their Sales Promotion
Activities to future increase Retailers Satisfaction.
The company may expedite the taking of orders and ensure
on-time delivery.
During Peak Season for soft drinks, the distributors are not
meeting the demand of retailers due to non-availability of
Page | 118
stock. So company should try to provide the sufficient stock
in peak seasons.
Most of the retailers complained about non-availability or
some flavors. Retailers are feelings this would reduce their
outlets image. So, company should send all flavors to every
distributor.
Most of the retailers complained that promotional schemes
were being communicated to them in the last minute of time.
Company management should bring pressure on distributors
to maintain stock to their carrying capacity. So that it
matches with the expected demand in peak season.
Page | 119
CONCLUSION FOR THE STUDY
Here the respondent presents the conclusion for the research
made. The goal of this research was to study the Sales
Comaprision and Sales Promotion systems and practices on todays
organizational Promotional strategies endeavor; Sales Comparison
has been a key element of the modern marketing in recent years.
All around the world companies in different sizes have been trying
to utilize On the other hand because of vigorous competition not
only acquiring new customers is becoming difficult but also holding
existing customers is a quite challenging task
During our research we learned that it is a lot cheaper to
keep existing customer in level that constantly encourage them to
stay with a company is a dynamic and meticulous job. That is why
computerized Sales comparison system can play a critical role in
success of a company. But the way that Sales Comaprision systems
are used can make substantial different on the out come. Along
with sales and marketing. A new emerging approach that recently
has been attracting corporations is customer value management.
Page | 120
Their goal is to identify value that can be delivered to the customer
along with their products through their supportive processes and
services.
For a successful relationship it is up to the company to
perform customers profitability analysis. As a result this analysis, if
a customer is not doing well with presented products or services,
there is an opportunity for us to find a better solution for that
customer before loosing it to competitors.
One of the other important facts I learned in this research
was; a fundamental principle of Sales Promotional activities are
that all customers are not same. Another words, it is not possible
to attract and retain all customers with the same policy and
treatment. And also I found that SRI SARVARAYA SUGARS has been
providing proper promotional strategies in order to retain them for
a long period.
Another important issue of my research was SRI SARVARAYA
SUGARS was giving freedom for customer to check the products
quality of what they want. And also I found that there was a delay
in loading process and also compliant resolution process was
taking much time.
Page | 121
SRI SARVARAYA SUGARS
LIMITED
BOTTLING UNIT VEMAGIRI
QUESTIONAIRE FOR THE COMPARISION OF SALES AND
SALES PROMOTIONAL STRATEGIES
1.Personal details
i. NAME OF THE PERSON:
ii. AGE:
Page | 122
iii. AGENCY NAME (OR) SHOPE NAME:
iv. PLACE:
v. CODE:
vi. MANDAL:
2. Brands dealing in the out-let.
a) Coca-Cola b) Pepsi c) Artos d) All .
3. Do you have supply in time?
a) Yes b) No
4. Promotional activities offered by which company is good?.
a) Coca-Cola b) Pepsi.
5. Top brands consumed by the outlet for the coca-cola?
a) Maaza b) Sprite c) Kinly
6. Top brands consumed by the outlet for pepsi ?
a) Slice b) 7up c) Aquafine
7. Total daily sales of an outlet in crates.
8. Which company gives you the maximum benefits in the
customer?
a) Coca-Cola b) Pepsi. c) Both.
9. Fast moving brand in the outlet.
10. Which reason to sale in Coca-cola?
a) Brand image b) Quality c) Quantity d) All.
11. After sale services provide by the company.
Page | 123
a) Good b) Bad c) Average.
12. What is the main source of information regarding the soft
drinks?
a) TV b) Radio c) News paper d) Promotional programs
13. Whether the advertisement of the company help to promoted
the sales.
a) Yes b) No
14. Duration of sales supervisor visit your shop?
a) Weekly b) 15days in a month c) Monthly.
15. Trade schemes offered by which company is good?
a) Coca-Cola b) Pepsi. c) Both.
16. Are you satisfy with the present distribution system?
a) Yes b) No
17. Are they charging the same price for the same dealers?
a)yes b) no
18. Do you face any market problems regarding Coca-Cola
Company?
a)yes b) no
19.After sales providing the service?
a)very good b)good c)satisfactory
20. Any suggestions for improving the system in Coca-Cola
Company?
Page | 124
Signature of the Dealer or
Customer
Thank You Sir for your immediate response
BIBLIOGRAPHY
Text Books
Page | 125
Marketing Management : V.S.Ramaswamy,
S.namakumari
Marketing Management : Philip Kotler
Sales and Distribution : Dr.S.L Gupthn
Marketing, theory and practices : Adrian Palmer
Fundamentals of Marketing : Stanton W.J.
Fundamentals of Selling : Charles M Futrell
Marketing Research : G.C. Beri
Research Methodology : C.R. Kothari
Web Sites:
www.coca-cola.com
www.wikipedia.com
www.scribd.com
Page | 126

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INTRODUCTION

ABOUT THE TOPIC

Marketing is typically seen as the task of creating,

promoting & delivering goods & services to consumers and

firm uses to purpose marketing objectives in target markets. The

sales comparison and sales promotion

Marketing is indeed an ancient art it has been practiced in on

a management discipline however is of relatively recent origin. And

with in this short period, it has gained so much importance and

stature that today most management thinkers and parishioners

throughout the world view it as the most important of all

management functions in any business.

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas, goods,

and services to create exchanges that satisfy individual and

creating communicating, and delivering value to customers and for

managing customer relationships in way that benefit the

organization and its stake holders.

Human activity directed at satisfying needs and wants

through exchange process.

The on going process or moving people closer to

marketing a decision to purchase, use fallow, refer, upload, down

load, obey, reject, confirm, become complacent to some one elses

products services or values. Simply, if it doesnt facilitate a sale

then its not marketing.

The thing process of anticipating, identifying and satisfying

customer requirements profitably chartered Institute of marketing.

-----Chartered Institute of Marketing.

The sales comparison is one of the three major groupings

of valuation methods, called the three approaches to value,

commonly used in real estate appraisal. This approach compares a

subject property's characteristics with those of comparable

process uses one of several techniques to adjust the prices of the

comparable transactions according to the presence, absence, or

degree of characteristics which influence value. As such, all sales

comparison approach methods are variations on hedonic-type

measurements, which determine the value of something as the

sum of the value of the various components which contribute

Sales displays are the act of putting things for view or on

view. In sales management, sales display means arranging

systematically saleable goods so as to attract the attention of the

customer. Advertising helps in awareness, reminding and

informing customers about products and services. The actual

product is not displayed in advertising. Sales displays fulfill that

need by appealing to the eye of the prospects. Through a sales

display, the manufacturer shows the goods or services to the

exhibiting products and inducing prospects to buy the same. Sales

displays are actually advertising at the point of purchase.

Sales promotion is another important component of the

marketing communication mix. It is essentially a direct and

hence prompts the dealer/consumer to buy the product.

The committee on definition of the American marketing

association defines sales promotion as follows.

In a specific sense, sales promotion includes those sales

activities that supplement both personal selling and advertising,

and coordinate them and make them effective, such as displays,

shows , demonstrations and other non-recurrent selling efforts not

in the ordinary routine.

Soft Drink Industry is a typical consumer product industry