Sales & Promotion at Coca Cola
Sales & Promotion at Coca Cola
Sales & Promotion at Coca Cola
PROJECT REPORT
ON
SALES & PROMOTION
AT
COCA COLA
(2016-2018)
Under supervision of
SUMITTED TO
(Affiliated to SSUP,Maharashtra)
1
DECLARATION
partial fulfillment of the requirements for award of the degree of MBA at KASHIBAI
out by me and
has not been submitted to any other University/Institute for award of any degree/diploma.
2
ACKNOWLEDGEMENT
I take this opportunity to extend my profound thanks and deep sense of gratitude to the
authorities of Coca Cola , for giving me an opportunity to undertake this project work in their
esteemed organization. I profusely thank Mr. Thirupathi Reddy, Manager Finance, in particular
for guiding me and helping me in successful completion of the project. I would also like to thank
all the employees of the organization.
COLLEGE OF ENGINEERING,SSUP,Maharashtra, which created a great platform to
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attain profound technical skills in the field of MBA, thereby fulfilling our most cherished goal. I
am very much thankful to our internal guide Mr.Deepak, Professor for extending their
cooperation in completion of project.
I am also thankful to all those who have incidentally helped me, through their valued
guidance, cooperation and unstinted support during the course of my project.
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INDEX
PAGE
S.No: CONTENTS NO.
CHAPTER1
INTRODUCTION
Scope of the Study
Objectives of the Study
Methodology of the Study
Limitations of the Study
CHAPTER2
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER3
THEORETICAL FRAMEWORK
CHAPTER4
DATA ANALYSIS AND
INTERPRETATION
CHAPTER5
FINDINGS
CONCLUSION
SUGGESTION
BIBLIOGRAPHY
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6
CHAPTER 1
INTRODUCTION
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INTRODUCTION TO THE PROJECT
This chapter explains about the background and states the objectives of the project. The
purpose of the study is to determine the impact of promotional activity for selling Coca Cola
products in Pune city only.
Promotion is comprehensive terms, and covers the entire gamut of advertising, publicity, public
relations, personal selling and sales promotion. Sales promotion is thus a part of promotion and
is restricted to direct inducement on a short term basis services.
The same promotional strategy was applied by Coca Cola to promote their products and
boost up its sales. The Coca Cola performed promotional activities like canopy, road shows,
EPP, broacher distribution, etc.
In the present competitive world if any business organization has to survive it needs to keep an
eye on various forces operating in the market. More over competitors constantly try to win over
others. In this scenario, every business organization needs to monitor the changes taking place
in the market so that they are not caught. Market research is an efficiency tool in the hands of a
marketer that helps him to take changes taking place in the market.
The main purpose of survey is to throw light towards the promotional activities on
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the sale of the product.
The activities were carried out only at show rooms, road shows and residential areas
This study is important in the sense as we can measure the position of the product after analyzing
the data that we have with us. This study also gives an experience to the management student
who is doing the research as it is the base of marketing.
OBJECTIVES
6. To analyze the awareness among public about the Coca Cola products.
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7. To find out the reasons for low sales of the products.
8. To conduct promotional activity in various places like shopping malls, residential areas,
corporate etc.
9. To increase the prescription rate among the respondents by using promotional tools.
RESEARCH METHODOLOGY
DEFINITION:
Research refers to „a search for knowledge‟. It can be defined as a scientific and systematic
search for pertinent information on a specific topic.
RESEARCH METHODOLOGY
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general methodology is an optional framework within which the facts are placed so that the
meaning may be seen more clearly. The sources of data shown that designing of a research plan
calls for decision on the data sources are research approaches (primary and secondary data)
research instruments (observation survey experiment) sampling plan and contact methods
(personal interviews).
RESEARCH DESIGN
In order to achieve the objective it was necessary to talk to the customers and public to
draws the conclusions regarding the objective.
For visiting the customers and publics to collect the relevant information; a
questionnaire has to be designed. The questionnaire was designed in such a manner to
achieve the objective of the research.
TYPE OF RESEARCH
Descriptive Research:
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This is kind of research structure which is concerned with describing the characteristics
of the problem. In this way the main purpose of such a research design is to present a
descriptive picture about the marketing problem on the basis of actual facts. For this it is
important to obtain the complete and actual information about the subjects.
NATURE OF RESEARCH
Quantitative type of research has been used. As all the data was based on numerical figures
obtained in the survey.
TYPE OF QUESTIONS
The questions were self-administered, with a view to obtain maximum information from the
TYPE OF QUESTIONNAIRE
TYPE OF ANALYSIS
As all the data found in the survey is totally numerically so the type of analysis was statistical.
SOURCE OF DATA
PRIMARY DATA
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The data which is collected fresh and for the first time and thus happen to be the
original one characteristic is called as the primary data.
SECONDARY DATA
The data which is already collected by someone else and which have been passed
through the statistical process is known as the secondary data.
Interview Method
In this project I have taken the questionnaire method for collecting necessary information. In
this method a questionnaire is given to the person concerned with question to answers the
question and return the questionnaire. A questionnaire consists of number of question printed in
a definite order on a form or a set of form.
This is one of the most important steps of a research design procedure. Generally in most of
the marketing studies on sample or most of the sub group of the total population pertaining to
the subject is included on the place of the universe.
Sample Size
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The sample size of the population was 100 respondents.
Sample Population
A survey of people who either own or plan to purchase laptop and on located in
Pune city only.
Sample Extent
Viman Nagar
Vadgaon sheri
Sampling Methods
The sampling method for the survey was random sampling. Random sampling suggest
away of sample selection where in any item of the population is likely to be selected in
a sample as any other item it means that all items of the population have equal
probability of being selected in the sample.
The report mainly consists of a data from the primary source gathered the schedule of
questions. Questionnaire is the formal tool of asking questions directly from respondents by
which questions are asked. Information about the product is taken from various sources such as
websites, newspapers etc.
Promotion function: The function of promotion is to accelerate action stated by other marketing
activities. Promotion acts as a catalyst to accelerate action, primarily on the part of the consumer.
It supplements, but is not a substitute for, advertising and selling efforts.
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Promotion accelerates action by changing the price – value relationship of the brand
Every product has an established value in the minds of the consumer. This is what the consumer
is normally willing to expend (in money) for what he gets, or thinks be gets,
when he buys the product.
Promotion changes this price-value relationship to the point where the individual is stimulated to
take a desired action. It does this in most cases either by lowering the price
or by increasing the value of the product or both
When to use promotion:
The need for promotion varies because
1. A brand’s quality is inferior to competition;
2. A brand’s advertising is not as persuasive as competitive copy; or
3. A new brand is being introduced
Promotion’s role in the life cycle of a brand
At each stage in a brand’s life cycle a different degree of promotional
emphasis is required.
New Product: A new product can usually profit from substantial promotion support – if the
product, the advertising, distribution and price are right.
The promotion can truly perform its function of accelerating trial and purchase of a brand whose
value has not yet been fully established in the minds of all consumers. Although good advertising
on a new brand will persuade many consumers to try the brand, it is not likely to persuade every
logical prospect to take immediate action. Though the advertising does not quickly move to
action require an extra incentive, such as a free sample or coupon or some other device that
increases the value of the brand, or lowers its price, to the point where the prospect decides to
buy it. If the product is of good quality, promotion thus helps to establish its value quickly in the
minds of more people.
Growing Brand: There are indications, incidentally, that many new brands (but not all) reach
their share-of-market peak within six months to a year after the completion of their introduction.
This leads to the conclusion that a brand of proven product and advertising copy superiority
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would be well advised to meet maximum trial during the introductory period by spending heavily
in the advertising media and on the promotional devices that are most effective in reaching the
brand’s best longterm prospective consumers. Investment at the highest practicable level in
effective advertising and promotion during the introductory stage, therefore – by quickly
achieving a high franchise level – can establish a business that is less vulnerable to competition
and that returns higher level of
profit in the following years.
Stable Brand: An established, growing brand generally requires minimal promotion support,
usually of a selective nature. The product and its advertising are still equal to or better than
competition. A high proportion of potential customers have tried the brand
And many have become more or less regular users.
In such a healthy situation, the job that promotion has to do usually is much narrower and more
specialized. It can be used for such specific purposes as improving distribution on large sizes,
attracting new users from fringe groups or areas where usage levels are below potential, or
increasing the consumption among present users. Total promotion expenditures, however, can be
cut back to levels that generate optimum profits – so long as the brand continues to represent
superior value for the price.
Declining Brand: A mature, stable brand may need increased promotional support as
competition begins to match it in product quality and in the persuasiveness of its advertising
copy, or as the brand reaches its natural franchise level. When this happens,
Growth ceases, sales and share level off.
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4. Price packs: Offers to consumers of savings off the regular price of a product, flagged on
the label. Ex: A reduced price packs.
5. Free trials: Inviting customers for free trials of products without cost.
CHAPTER 2
INDUSTRY PROFILE
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COMPANY PROFILE
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are
products that have a quick turnover and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other products.
The Indian FMCG industry witnessed significant changes through the 1990s. Many players had
been facing severe problems on account of increased competition from small and regional
players and from slow growth across its various product categories. As a result, most of the
companies were forced to revamp their product, marketing, distribution and customer service
strategies to strengthen their position in the market.
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By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly.
With the liberalization and growth of the Indian economy, the Indian customer witnessed an
increasing exposure to new domestic and foreign products through different media, such as
television and the Internet. Apart from this, social changes such as increase in the number of
nuclear families and the growing number of working couples resulting in increased spending
power also contributed to the increase in the Indian consumers' personal consumption. The
realization of the customer's growing awareness and the need to meet changing requirements and
preferences on account of changing lifestyles required the FMCG
producing companies to formulate customer-centric strategies. These changes had a positive
impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space,
rapid urbanization, and qualified manpower also boosted the growth of the organized retailing
sector.
HLL led the way in revolutionizing the product, market, distribution and service formats of the
FMCG industry by focusing on rural markets, direct distribution, creating new product,
distribution and service formats. The FMCG sector also received a boost by government led
initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the
country that witnessed firms moving away from outsourcing to manufacturing by investing in the
zones.
Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will not
put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of global
market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.
The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is the
South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth
Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up to 4
million jobs. (Source: HCCBPL, Monthly Circular)
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A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA
In India, beverages form an important part of the lives of people. It is an industry, in which the
players constantly innovate, in order to come up with better products to gain more consumers
and satisfy the existing consumers.
BEVERAGES
ALCOHOLIC NON-
ALCOHOLIC
CARBONAT NON-
ED CARBONAT
ED
The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
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If the behavioural patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest challenges
faced by the beverage industry. In order to leverage the beverage industry, it is important to
address this issue so as to encourage regular consumption as well as and to make the industry
more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry
in India are:
The quality and the consistency of beverages needs to be enhanced so that consumers are
satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
Consumer education is a must to bring out benefits of beverage consumption whether in
terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige
relevant to the category.
Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity,
for brand and sales growth in turn to add up to the overall growth of the food and
beverage industry in the economy.
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COMPANY PROFILE
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COCA COLA INTERNATIONAL
HISTORY:
the Coca-Cola system. Yet each of its franchises has a strong heritage in the
The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist,
Coca-Cola syrup for sale in fountain drinks. However the bottling business began in
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Whitehead,
secured the exclusive rights to bottle and sell Coca-Cola for most of the United
operate as independent, local businesses until the early 1980s when bottling
its company-owned operations with two large ownership groups that were for sale,
the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to
form Coca-Cola Enterprises Inc. The Company offered its stock to the public on
total unit case sales were 880,000 in 1986.In December 1991, a merger between
Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston)
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responsibility for managing the Company, and began a dramatic, successful
restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues
were $5 billion
The Coca-Cola Company is the world’s largest beverage company. They operate in
more than 200 countries & markets more than 2800 beverage products. Head
quartered at Atlanta, Georgia, they employ approximately 90500 employees all over
the world. It is often referred to simply as Coke or (in European and American
MARKET POSITIONING
Product Range
· Coke.
· Sprite.
· Fanta.
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· Diet Coke.
And company offers their products in different bottle sizes these includes:
In order to achieve this mission, we must create value for all the constraints we
serve, including our consumers, our customers, our bottlers, and our communities.
The Coca Cola Company creates value by executing comprehensive business strategy
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guided by six key beliefs:
The ultimate objectives of our business strategy are to increase volume, expand
our long- term cash flows, and create economic value added by improving
economic profit.
The Coca Cola system has more than 16 million customers around the world that
value for these customers and helping them grow their beverage businesses. We
strive to understand each customer’s business and needs, whether that customer is a
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There are nearly 6 million people in the world who are potential consumers of our
company’s product. Ultimately, our success in achieving our mission depends on our
ability to satisfy more of their beverage consumption demands and our ability to
add value for customers. We achieve this when we place the right products in the
MARKET SHARE:
Being the biggest company in the soft drink industry, Coca Cola enjoys the
largest market share. This company controls about 59% of the world market.
2002, the company grew their carbonated soft-drink business by nearly 250
million unit cases and generated record volumes. Because carbonated soft drinks
are the largest growth segment within the nonalcoholic ready-to-drink beverage
category measured by volume, that is why they are focusing more on this and
they are continually increasing the pace because they know that accelerating this
pace is crucial to their future success. Thus they are increasing their market day
by day.
This strategy has worked a lot and it has helped them to become the
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World’s leading Soft Drink Company. The global unit sale of the Coca Cola
Company is increasing from the last ten years. The data of the global unit sale of
So there is positive growth in the market of the Coca Cola Company. There is a
only due to the innovative marketing programmers, which has deepened the
relationship of the customers and Coca Cola. The financial health and success of
their bottling partners is a critical component of The Coca -Cola Company's ability to
In 2002, the company had worked with their bottlers to turn good intentions into
reality by improving the system economics. The results in 2002 reflect this steadily
improving and mutually constructive relationship between the Company and their
bottling partners. The main reason behind this relationship is to continue realizing
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Non -alcoholic beverages fall within the food category under the FDA. The
The following are some of the factors that could cause Coca-Cola company's actual
results to differ materially from the expected results described in their underlying
taxation requirements, (including tax rate changes, new tax laws and revised tax law
limitation, competitive product and pricing pressures and their ability to gain or
borders.
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Political structure and legal considerations also have impinged on
Coca-Cola’s products due to a political dispute and discontented with the company
Economical Analysis
Being flexible and willing to change to satisfy consumers’ needs, has enabled Coca-
Cola to exploit the economies of scale that was gained by its global marketing and
at the same time making its products appeal to local taste, which these have earned
As Coca- Cola has expanded over the decades or even nearly a century, the
company has benefited from the various cultural insights and perspectives of the
backgrounds like to drink, and where and how they like to drink it, to remain
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Now, the estimated brand equity of Coca-Cola is $84billion, market share of more
than 50 percent in beverage industry globally and about 70 percent of its income
Every 10 seconds, 126,000 people in the whole world, choose to reach out for one
of The Coca- Cola Company brands, and it is the company’s mission to make that
Previously the U.S. economy was strong and nearly every part of it was growing and
doing well. However, things changed. Before the attacks on September 11, 2001, the
United States was starting to see the economy recover slightly and it is only just
recently that they achieved the economic levels. Consumers are now resuming their
normal habits, going to the malls, car shopping, and eating out at restaurants.
However, many are still handling their money cautiously. They believe that with lower
inflation still to come, consumers will recover their confidence over the next year. As
researching for new products would cost less the Coca-Cola Company will sell its
products for less and the people will spend as they would get cheap products from
Coca- cola.
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international marketing. Culture has a tremendous effect on people’s preferences
and perception. Language is one of the aspects of culture that marketers must take
care of, in term of translating product name, slogans and promotional messages so
as not to convey the wrong meaning. Coca-Cola did not look much into this aspect
when entering into the markets of countries like China and Taiwan as the literal
products, as it is important that the products suit one’s taste, preferences and
fulfill one’s needs. Coca- Cola has continued changing, improving and
After discovering that Coke did not appeal as much to Japanese consumers,
Coca- Cola developed over 30 new drinks for the Japanese market, which
In China, Coca-Cola has also begun the similar strategy of introducing beverages
It launched a fruit juice drink called Tian Yu Di (Heaven and Earth) specifically for
the Chinese market with planning of introducing the market with a Chinese iced
Many U.S. citizens are practicing healthier lifestyles. This has affected the non-
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alcoholic beverage industry in that many are switching to bottled water and diet
colas instead of beer and other alcoholic beverages. Also, time management has
increased and is at approximately 43% of all households. The need for bottled water
and other more convenient and healthy products are in important in the average
day-to-day life.
nutrition. There is a large population of the age range known as the baby
boomers. Since many are reaching an older age in life they are becoming more
concerned with increasing their longevity. This will continue to affect the non-
alcoholic beverage industry by increasing the demand overall and in the healthier
beverages.
Some factors that cause company's actual results to differ materially from the
The new Soft drinks of internet and television which use special effects for
advertising through media. They make some products look attractive. This helps in
selling of the products. This advertising makes the product attractive. This Soft
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drinks is being used in media to sell their products.
Introduction of cans and plastic bottles have increased sales for Coca-Cola as these
are easier to carry and you can bin them once they are used.
As the Soft drinks is getting advanced there has been introduction of new
Coca-Cola has six factories in Britain which use the most state-of the-art drinks Soft
drinks to ensure top product quality and speedy delivery. Europe's largest soft
drinks factory was opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield
factory has the Soft drinks to produce cans of Coca- Cola faster than bullets from a
machine gun
Coca Cola is the world-renowned soft drink and the company is currently operating
throughout the world. The world wide total is about 17.8 billion.
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The operation review according to the segments is as follows.
approximately 3.2 billion and the average consumer enjoys close to two
Cola, innovation and new beverages, the company has achieved volume
this region has strong long- term potential, and the company is building an
our core brands, led by Coca-Cola. In China, for example, sales of Coca-Cola
increased 6 percent. The total unit case sale of Coca Cola in Asia can be
strategy, which can increase the growth of the consumption of Coca Cola by
the people of Asia. Among the countries of Asia, Japan has the highest
day by day.
2002 basic and diluted net income per share includes the following charges:
· $.19 per share after income taxes related to the Company's portion of charges
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· $.16 per share after income taxes related to the impairment of certain
· $.05 per share after income taxes related to the settlement terms of a
discrimination lawsuit.
· $.01 per share after income taxes related to incremental marketing expenses
in Central Europe.
These charges are partially offset by a gain of $.05 per share after income taxes
related to the merger of Coca- Cola Beverages plc and Hellenic Bottling Company
S.A. and $.04 per share after income taxes related to benefits from a tax rate
The Dividend and Cash Investment Plan permits share owners of record to reinvest
dividends from Company stock in shares of The Coca-Cola Company. The Plan
shares of our common stock. All share owners of record are eligible to participate.
Share owners also may purchase Company stock through voluntary cash investments
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At year-end, 76 percent of the Company's share owners of record were participants
in the Plan. In 2002, share owners invested $36 million in dividends and $31 million
COMPANY STATISTICS:
The statistics of this company is impressive. Since it is operating through out the
world that is why the number of employees and the bottling equipments is highest
among the other bottling companies. There is a constant increase in every aspect
when we compare the statistics of 2001 and the statistics of 2002. This is because;
Coca Cola Company is increasing its volume day by day. The expansion of this
company, which shows the success of Coca Cola brands, results in the percentage
change in the statistics of the two years. EBITDA is the Earnings before interest,
Net Debt is the Long-term debt plus current portion of long -term debt less
Equivalent Case or Unit Case is the physical case and fountain gallons
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PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use
throughout the world. This company not only deals in the carbonated drinks but
also other drinks. While launching its product, the marketing team considers the
· Coke
· Sprite
· Fanta
· Diet coke
· Coke classic
where it expects profitable growth. This strategy has paid dividends. The company
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has successfully applied it’s approach to brands in several key markets, including Ceil
in Mexico, Mori No
network of bottling partners through out the United States, Dasani became the
nation's fastest-growing water brand. In Eurasia, the entire Turkuaz brand team
Turkey's first purified water brand. This year, Coca-Cola Company also successfully
energized a major piece of its beverage strategy— water. By the end of 2001, it’s
bottled water volume exceeded 570 million unit cases, making it the second biggest
contributor to the growth of the company after carbonated soft drinks. Three of the
water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit
In 2001and 2002, the company has also made good progress in coffees and teas.
with Nestlé S.A., began operations in 2001. This partnership combines Nestlé's
knowledge in life science, research and development with the expertise of Coca Cola
At the same time, the company grew Georgia coffee in Japan by 3 percent through
award-winning marketing in a category that was flat for the year. Also in Japan—
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where The Coca-Cola Company is the leader in the total tea category, the second-
Green Tea. With sales of 46 million unit cases for the year, Marocha Green
Tea is the fastest-growing product in the fastest-growing category: green tea. The
popularity of Marocha is also recognized by the industry with a leading trade journal
naming Marocha the most popular new food and beverage product of the year.
Among the soft drinks Fanta and Sprite become successful along with the major
brand Coca Cola and Diet Coke. In key markets, the company has created new
Increasingly, Mexican families have lunch together at home. The average Mexican
household drinks two-and-a-half liters or more of soft drinks during that break,
while a two-liter bottle was the largest available package. So the company
introduced a convenient 2-½ liter bottle to select regions, contributing to the sale of
nearly 1.5 billion unit cases of Coca-Cola in Mexico this year. This larger bottle will
holiday celebrations and the family get- togethers that accompany such events.
increased by 6 percent. In the United States, recognizing that consumers often enjoy
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their diet Coke with a slice of lemon, the company "bottled" the concept. The result
number-one diet.
Soft drink in North America: diet Coke. The company increased its two largest bottle
sizes during the 2001 holidays, and festival packaging helped drive a 6 percent
The packaging innovations do not just involve resizing. The company has also
With brands such as Minute Maid, Hi- C, Simply Orange and Disney juices and juice
drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa.
This year, the company re-launched its global sports-drink business, investing in new
The results speak for themselves: it’s global sports drinks, led by Powerade and
Aquarius, grew by 13 percent in 2002, nearly double the growth rate of the
Great Britain, Germany and Spain, as well as in Mexico and Latin America. The
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The commitment of the company to packaging innovation also resulted in new
initiatives for our fountain business, a channel through which many consumers enjoy
Coca - Cola. In the United States, the company developed Fountain, a total beverage
dispensing system that is more flexible and more reliable. Two years of research
upgrade Soft drinks, brand and graphic customization and improved reliability.
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CHAPTER3
THEORETICAL FRAMEWORK
THEORETICAL FRAMEWORK
PROMOTION
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Basically promotion is an attempt to influence. More specifically, Promotion is the element in
an organization‟s marketing mix that serves to inform, persuade and remind the market of a
product and/or the organization selling it, in hopes of influencing the recipient‟s
feelings, beliefs, or behavior. Out of 4 P‟s of marketing i.e. product, price, place, and
A well designed promotion mix is extremely crucial for brand building and positioning.
In fact communication or promotional mix is at the centre stage in brand positioning
and Brand building activities.
Effective promotions prove helpful in product differentiation and also help to counter
competition.
COMPONANTS OF PROMOTION
There are five components of promotions: Advertising, Sale promotion, Personal selling,
direct marketing, Public relations. Each has distinct features that determine in what situation it
will be most effective.
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1. ADVERTISING:
“It is any paid form of non-personal presentation and promotion of ideas, goods, and services
by an identified sponsor”. The most familiar forms of advertisements are found in the
broadcast (TV and RADIO) and print (Newspaper and Magazines) media. However, there
are many other advertising alternatives, from direct mail to billboards and the telephone
directory to yellow pages. Advertising is often termed as pull strategy. In pull strategy the
goal is to get consumers to pull the product in the supply chain by demanding it.
Create an advertisement
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TYPES OF ADVERTISEMENT
MEDIUMS OF ADVERTISING
Newspapers
Television
Radio
Magazines
Direct mail
Outdoor advertisings.
2. SALES PROMOTION:
The free gifts-offers, discounts, coupons, lucky draws, etc., are some of the ways used in
sales promotion.
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Consumer promotion:
The consumer promotion directed at Consumers. It includes Samples, Price off, free gifts, Cash
refund offers, premiums, prizes, warranties, cross promotion, point of purchase.
Trade promotion:
Business and sales promotion:
It includes trades shows and conventions, contents for sales promotion representatives
and for special advertising. Although sales promotion tools are highly divers but they all
offer three distinctive benefits:
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Communication
Incentive
Invitation.
3. PERSONAL SELLING:
The importance of personal selling is pretty evident as this is the only marketing activity that
directly results into Revenue earning as its outcome. The simplest definition of personal selling
is-“selling that involves face- to-face interaction between the sales person and prospective
customer.”
There are certain products, which need demonstration or explanations. Personal selling is
There is a personal touch and with trained salesman, the customer can feel
important and gives full attention to the product detailing.
4. DIRECT MARKETING:
The Direct Marketing association defines Direct Marketing as follows: “Direct Marketing is an
interactive marketing system that uses one or more advertising media to affect a measurable
49
response and or transaction at any location”. This definition makes it clear that direct marketing
is directly from the company to the customer and there is no intermediary (retailer, whole seller
etc.) involved in between.
· Direct mail
· Telemarketing
· Email Marketing
· Couponing
· Direct selling.
5. PUBLIC RELATIONS:
Public relations are defined as deserving, acquiring and retaining a favorable reputation in
the market place. Public relations function aims at creating maintaining favorable public
opinion about company‟s products, people, policies and plans.
Public relations are defined as “any group that has an actual or potential interest or
impact on company‟s ability to achieve its objectives”. The public relations do not
50
directly help promoting the product but can make product or policy acceptance by the
public easy by generating a favorable image about the company.
51
CHAPTER 4
52
Analysis:-
Interpretation
53
2. Percentage of people using different brand?
Interpretation
After survey student found that most of the customers having Coca Cola Soft
Drinks.
54
3. Does your purchasing decision affected by the brand name of the Soft Drinks?
Yes 80
No 20
Interpretation
55
4. What is the opinion about the price policy of Soft Drinks Products?
Expensive 40
Cheap 60
Interpretation
56
5. For what purpose you buy Coca Cola Drinks ?
Official 25
Household 55
Business 10
Any other 10
Interpretation
Customers mostly preferred to use Coca Cola Drinks for their family itself.
57
6. Have you faced any problem regarding with Coca Cola?
Yes 06
No 94
Interpretation
58
7. How does Coca Cola have customer relations?
Satisfactory 88
Unsatisfactory 12
Interpretation
59
8. Are you satisfied with Coca Cola Drinks ?
Yes 80
No 20
Interpretation
60
9. How did you come to know about this drinks?
TV : 30
Internet : 10
Newspaper : 12
Banners & Hoardings : 10
Friends/Relatives : 15
Road show :8
Magazine :5
Dealer : 10
61
10. Which brand of /drinks will you give the preference?
Respondent’s Preference
24%
Coca
20% Cola
Thu
ms
up
Sprit
e
Limc
18% 28% a
other
10%
INTERPRETATION:
According to the survey Coca Cola were top of the mind of the respondents with 28%, sprite
62
was just behind with 24%, the 20% were thumps up and 18% o and others is 10% which are
limca.
8%
Yes
No
92%
63
INTERPRETATION:
According to the survey of the project I studied that almost 92% of the peoples are aware of
Coca Cola products and services, and only 8% of the peoples are not aware of the Coca Cola
products and services because of less promotions in newspapers and news channels.
64
12. What is your opinion towards Coca Cola products & services?
3%
27%
24%
Very good
good
satisfactory
poor
46%
INTERPRETATION:
According to the survey of the project I studied that the respondent‟s opinion towards Coca
Cola products and services is 27% are very good, 46% are good, 24% are satisfactory and
3% are poor.
65
13. Have you heard about Coca Cola touch (24x7 SERVICE SUPPORT . 4000 CITIES)?
70%
60%
50%
40%
68%
30%
20% 32%
10%
0%
Yes
No
66
INTERPRETATION:
According to the survey of the project I studied that the 68% of the respondents have not heard
about the Coca Cola touch and only 32% of the respondents have heard about Coca Cola
touch.
67
14. After sales services which brand services is the best?
30%
26%
25%
22%
20%
20%
18%
15%
12%
10%
5%
0%
Coca Cola Thumps up Sprite Limca Others
INTERPRETATION:
According to the survey of the project I studied that the Coca Cola is top of the mind in after
sales services as compare to others.Coca Cola is 26%, sprite is 22%,thumps up is 20%,limca is
18% and others are 12%.
68
15.Does the Promotion help in better product awareness?
6%
Yes
No
94%
69
INTERPRETATION:
According to the survey of the project I studied that most of the respondents said that the
promotion is helpful in better product awareness.94% of the respondents are agree with this
and 6% don‟t think so.
70
16.Whether Promotional activity Profitable/ beneficial to you?
4%
Yes
No
96%
INTERPRETATION:
According to the survey and the data collected it is seen that most of the respondents think that
71
the promotional activity is profitable/beneficial to them. 96% of the respondents are agreeing
with that and 4% are not thinking so.
17. Have you ever purchased anything during or after the promotion?
80%
74%
70%
60%
50%
40%
30%
20% 17%
72
9%
10%
0%
73
Always sometime Never
INTERPRETATION:
According to the survey and the data collected it is seen that most of the respondents are not
always but sometime purchased during and after the promotion. Only 17% of the respondents are
purchased always during or after the promotion, and 74% are sometime purchased and 9% are
never purchased.
70%
62%
60%
50%
40%
Always
sometime
30%
22% never
20%
12%
10%
74
0%
never
INTERPRETATION:
According to the survey and the data collected it is seen that most of the respondents are
think that the brand ambassador creates more value in the product.62% respondents are
always agree with that because of them product get automatically more valuable and it
helps to attracts and influences us, 22% are thinking that not always but sometime they
create value in the product only if they are famous celebrities, and 12% are not think so.
19.What type of promotional activity attracts you more & required by company?
45% 42%
39%
40%
35%
30%
24%
25%
20%
16%
15%
10% 7%
5%
0%
75
INTERPRETATION:
According to the survey and the data collected it is seen that most of the respondent thinks that,
the discounts and advertisements attract them more and required by company.42% are discounts,
Advertisement(paper, TV) are 39%, gifts/lucky draws are 24%,canopy& road shows are 16%
and broacher distribution are 7%.
76
20.Have you ever ignored the promotional activity? Why?
60%
50% 48%
40%
34%
30%
20% 17%
10%
0%
INTERPRETATION:
According to the survey and the data collected it is seen that the most of the respondents are
never ignore the promotional activities because of attractive and get information about
products and company.48% never ignored, 34% ignored sometime because of not time or in
hurry and 17% always ignored.
77
21.Where the promotional activities can be effective and get more response?
8%
9%
32%
showrooms
shopping
malls
society/corporate
22%
internet
other
36%
78
INTERPRETATION:
According to the above graph it can be studied that the most of the respondents think that in
the shopping malls and showrooms promotional activities can be effective and get more
response. For shopping malls 36%, for showroom 32%, for society/corporate 22%, for
internet 9% and for other (multiplex, road shows) 8%.
79
INTERPRE
TATION:
6
0 According
% to the
survey and
the data
5 collected it
0 is seen that
% most of the
respondent
s are agree
4
with “less
0
promotion
%
and more
54%
discount”.5
3
4% are
0
agree with
% that, 24%
are
strongly
2 agree, 16%
0 are 16%
% disagree
and 6% are 6%
24% strongly
1 disagree. Agree
0 d
% i
s
a
0 g
% r
e
Strongly e
agree
Strongly
disagree
80
CHAPTER 5
FINDINGS
CONCLUSSION
SUGGESTIONS
81
Findings
1. After survey student found the satisfaction level of the Coca Cola
Drinks .
1. Most of the customers go for Coca Cola because of its safe Drinks.
2. Youth feel very comfortable with it.
3. Coca Cola Soft drinks is very innovative
4. High segment goes for name and goodwill.
82
Suggestions
83
Conclusion
84
ANNEXURE
Questionnaire
Name: ……………….. Mobile: ……………….
Address: ………………
Occupation: - Student -Govt. Employees -Own Business
1. Teacher - Shop Owner -Other
1. Do you drink soft Drinks ?
Yes No
2. Which Soft Drinks you have own?
Coca Cola Sprite Thumps up Limca Other
3. Does your purchasing decision affected by the brand name of the Soft
Drinks?
Yes No
4. What is the opinion about the price policy of Soft Drinks Products?
Expensive Cheap
5. For what purpose you buy Coca Cola Drinks ?
6. Have you faced any problem regarding the soft Drinks Products?
Yes No
7. How does Coca Cola have customer relations?
Satisfactory Unsatisfactory
85
8. Are you satisfied with Coca Cola Drinks ?
Yes No
BIBLOGRAPHY
BOOK REFERENCE
Referred Books:-
WEBSITES:-
www.cocacola.in
86
87