UTTRAKHAND TECHNICAL UNIVERSITY

BONAFIDE CERTIFICATE
Certified that this project report MARKETING STRATEGY AND

INPLEMENTATION OF JUICE SEGMENT IN THE SYSTEM OF COCA COLA COMPANY is the bonafide work of ASHUTOSH PANDEY who carried out the project work under my supervision.

<<Signature of the Head of the Department>> SIGNATURE

<<Signature of the Supervisor>> SIGNATURE

<<Name>> HEAD OF THE DEPARTMENT

<<Name>> SUPERVISOR

<<Academic Designation>> <<Department>> <<Full address of the Dept & College >> <<Department>> <<Full address of the Dept & College >>

MARKETING STRATEGY AND INPLEMENTATION OF JUICE SEGMENT IN THE SYSTEM OF COCA COLA COMPANY A PROJECT REPORT Submitted by

ASHUTOSH PANDEY

An

partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

MARKETING

DOON BUSINESS SCHOOL,DEHARDUN

UTTRAKHAND TECHNICAL UNIVERSITY:: DEHRADUN

AUGUST 2011

ACKNOWLEDGEMENT

I am grateful to MR.AJAY SINGH of Coca-Cola Limited (ADVANCE SALES AND SERVICES Pvt. Ltd.), for providing me an opportunity to work as a management trainee and helping me to learn about the market products and consumer perception about JUICE products of Coca-Cola. I am sincerely thankful to Mr. Lalit Saxena (Area Sales Manager) under their guidance I have successfully completed this project. I thank them for their consent, encouragement, and warm response and for filling every gap with valuable ideas that has made this project successful. My heartfelt gratitude also goes out to the staff and employees at Advance Sales and Services Pvt. Ltd. for having co-operated with me and guided me throughout the two months of my internship period. I am also grateful to my faculty guide at DOON BUSINESSS SCHOOL University,DEHRADUN i.e. MR.SOHAN RAWAT for her regular guidance, support and encouragement throughout my project work

ASHUTOSH PANDEY

DECLARATION I m ASHUTOSH PANDEY, Roll no. 10360500020, a student of MBA II semester

declares that I have successfully completed my summer training project report on

IN THE MARKET COCACOLA from ADVANCE SALES & SERVICES PVT. LTD., LUCKNOW. I hereby declare that all the information provided in this project report are true to the fullest of my knowledge and it bear no resemblance to any other written material whatsoever.In the event of any information provided in this report being found incorrect or misleading, I shall be liable to any outcome at any at any given day.

Place: LUCKNOW

Date:

ASHUTOSH PANDEY PREFACE Practical and Theory are the two aspects of Management education. The practical training in the domain of management courses has received vital importance. It exposes to the potential manager towards the actual work situation and gives a student rich insight into what practically is going on inside the industries, infect it is the implementation of theory into practices which is the life force of management. Two months practical training is an obligatory requirement for the M.B.A. It was of great advantage to receive practical training in ADVANCE SALES & SERVICES PVT.LTD. At LUCKNOW office. The management of the company offered an excellent learning situation. There have been considerable changes in the technology, operation and structure of the industry due to globalization, mergers, environmental issues and available fiber sources, and new challenges being posed by the changing customer satisfaction levels and multiple market requirements are forcing industry to adapt to new solutions.I was assigned special Project: To Provide a Better Promotional Scheme For The Dealers. To know consumers and retailers problem. To compare demand of juicy product as well as colas than competitors. To know advertisement position of Coca-cola.

TABLE OF CONTENTS

PART I PAGE Presidents Profile Introduction about the Company A Brief Insight-The Beverage Industry in India The Coca-Cola company History of company COCA COLA COMPANY IN LUCKNOW

PART II

1. Introduction to the topic 2. Objectives of Research 3. LITERATURE REVIEW 4 Research methodology 5 Data COLLECTION 6 JUICE SEGMENT 7. MISSION_VISION 8. Bibliography 10.QUESTIONAIRE

INTRODUCTION Coca-Cola, the product that has given the world its bestknown taste was born in Atlanta, Georgia, on May 8, 1886. CocaCola Company is the worlds leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Companys beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the CocaCola system has successfully applied a simple formula on a global scale: Provide a moment of refreshment for a small amount of money- a billion times a day. The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the worlds premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day.At Coca-Cola, we have a long stable belief that everyone who touches our business should benefit. Coca-Cola in India provides extensive support for community programmers across the country, with a focus on education, health & rain water harvesting. All key priorities of the Indian government has recognized the Companys efforts with several awards.

Education: Coca-Cola in India is supporting community based primary education projects set up to provide educational opportunities to marginalized children in slum & villages. Till today, the project have benefited 50 schools, thousands of students, over 500,000 villagers & over10,000 slum dwellers, as well as several villages near bottling plants. Environment: Coca-Cola in India is supporting community based rainwater harvesting projects in rural & urban areas to help restore water level & promote community education in way to conserve natural resources. These initiatives have benefited over 10,000 Delhi residents, as well as local community members, both in areas surrounding Coca-Cola bottling plants & elsewhere. Healthcare: Coca-Cola in India is partnering with NGOs as well as St.Johns Ambulance Brigade (Red Cross) to provide free medical facilities & information to poor people who cannot afford to visit hospital facilities. These efforts are helping tens of thousands of underprivileged people in seven states in India, as well as several villages near bottling plants. The company has also supported a range of other national initiatives, such as a major Polio eradication drive & drought relief programmers, in addition to support towards the National Cricket Champion for blinds & National Athletics meetings for the physically challenge

A BRIEF INSIGHT: THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) is products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and

qualified manpower also boosted the growth of the organized retailing sector. HUL 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. At the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. The FMCG sector consists of the following categories: Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman.

Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads,

Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat.

Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Unilever Limited, Nestle, CocaCola, Cadbury, Pepsi and Dabur

Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

THE COCA-COLA COMPANY In May 1886, CocaCola was invented by Dr. John Pemberton a pharmacist from Atlanta Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was suggestion given John Pembertons bookkeeper Frank Robinson.Being a bookkeeper Frank Robinson also had excellent penmanship it was he who first Coca Cola Into the flowing letters this has become the famous logo of today. The soft drinks were first sold to the public at the soda fountain in Jacobs Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink were each day. Sales for that first year added up to total of $ 50. The funny thing was that it cost John Pemberton over $ 70 in expenses, so the first Year of sales was loss. Until 1905, the soft drinks, marked as a tonic contained extracts to cocaine as Well as the caffeine- rich kola nut.By the late 1890s, Coca Cola was one of Americas most popular fountain drinks. With another Atlanta pharmacist, Asa Griggs Candler, at the helm, the Coca Cola Company increased syrup

sales by over 400 % between 1890 and 1900.Advertising was an important factor inPemberton and Candlers success & by the turn of the century, the drink was sold across the United States and Canada. Around same time, the company began selling syrup to independent bottling companies licensed to sell the drink. Even today, the US soft drink industry is organized on this principle.Until the 1960s both small town & big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people for all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, & fast food restaurant came to the fore. Headache Remedy : On May of 1886 Dr.Pemberton concocted 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 soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup, producing a drink that was proclaimed "Delicious and Refreshing." Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, created the name.

YEAR WISE HISTORY OF BOTTLING Year 1894: A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. Year 1916: Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world. In the 1920s: Bottling overtakes fountain sales As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. In the 1920s and 1930s: International expansion Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. In the 1950s: Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960. In the 1960s: Introduction of new brands Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world. In the 1970s and 1980s: Consolidation to serve customers Advancement in technology led to global economy, retail customers of The Coca-Cola Company merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century: Coca-Cola today The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. COCA-COLA COMPANY IN LUCKNOW:

This is the one of the biggest leading company in beverage sector in Lucknow also. In the Lucknow the coca cola company is a manufacturing company. They are producing several brands like Thumps up, Coca Cola, Sprite, Limca, Fanta, Maaza and they have come with their new brand Minut Maid Pulpy Orange. Pulpy orange is the sixty year old brand in China but for India it is new. Apart from this company also produces products like Kinley soda &water and Bonaqua new water brand. Distribution system of Coca Cola Lucknow

Dealers and agencies

Variou s Distric ts

LITERATURE REVIEW

Control of market share is the key issue in this study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how this is done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goal of both companies are exactly the same, the two companies rely on somewhat different marketing strategies .Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to fail. However, in certain countries that allow direct comparison, Pepsi has beat Coke. In foreign markets, both companies have followed the marketing concept by offering products that meet consumer needs in order to gain market share. Both companies cannot just sell one product; if they do they will not succeed. They have to always be creating and updating their marketing plans and products. The companies must be willing to accommodate their target markets. Gaining market share occurs when a

company stays one-step ahead of the competition by knowing what the consumer wants. Apart from this study previous studies were based on the distribution network and market share of some of these beverages companies. This study is based on to find out the market share of coca-cola in some of the areas of Lucknow city.Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. Around the world, some local brands do compete with Coke. The Coca-Cola Company purchased Thums-Up in 1993. As of 2004, Coca-Cola held a 60.9% marketshare in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in which there exists a United States embargo. Mecca Cola and Qibla Cola, in the Middle East, is a competitor to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to CocaCola. Coca-Cola Co. slightly increased its lead over rival Pepsi-Cola Co. in 2002, thanks to the successful launch of Vanilla Coke and the growth of Diet Coke, according to U.S. soft drink industry rankings released last week. Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 percent, according to Beverage Digest/Maxwell, a New York-based industry newsletter and data service. The company captured a larger share of the market even though its Coke Classic brand fell 0.6 percentage points in market share. Coca-Cola dominates 44.3 percent of the U.S. soft drink market, but saw its market share drop between 1999 and 2001.In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to 1993. But Coca-Colas entry made things even more complicated and the fight became a three-way battle. That same year, in a move that baffled many, Parle sold out to Coke for a meagre US$ 60 million (considering the market share it had). Some assumed Parle had lost the appetite for a fight against the two largest cola brands; others surmised that the international brands seemingly endless cash reserves psyched-out Parle. Either way, it was now Coca-Colas, or Coke has a habit of killing brands in its portfolio that might overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in India, with Thums Up introduced alongside, albeit in minuscule numbers. Later Coca-Cola started pulling out the Thums Up brand which at that time still had more than 30% market share.

Maaza

Ladies and Kids.

Sprite

Not clearly defines.

Kinley Soda

Mostly for those who consume liquor.

COMPETITORS

The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends for the World's # 2, carbonated soft drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-todrink tea.

NO.OF 60.8% is heldIN Coca-Cola and the rest belongs to Pepsi. BOTTLES by PACK A CASE 24 300ML 24 24 12 9 24 200ML 250ML 1.2 LTR 2 LITRES 600ML
Bibliography

PepsiCo and Coca-Cola hold together, a market share of 95% out of which

6
WEB-SITES:

1 LTR

www.coca-cola.com www.coca-colaindia.com www.wikipedia.com http://news.bbc.co.uk www.economictimes.indiatimes.com www.google.com www.ask-jeeves.com www.distributing-company.com

BOOKS:

Research Methodology, Kothari C.R. Research MethodologyMethods and Technology, New Delhi, Wishwa Prakashan edition2003.

Multi level and Direct Marketing, Branding Kotler, Phillip, Marketing Management, Delhi, Pearson Education (Singapore) Pvt. Ltd. 11thedition.

With the help of the senior executives of the companyan attempt has been made inorder to define the processes andprocedures followed.With the help of various marketing websites.

Questionnaire

NAME OF THE SHOP. ADDRESS TEL. NO. .

Q1)Which brand do you sell? PEPSI COCA COLA BOTH

Q2)Why are you not selling the Coca Cola or Pepsi product? Q3)How many brands are available in your shop in the RGB and PET Bottles?
In RGB COCA COLA SPRITE FANTA (B)In PET COCA COLA SPRITE FANTA MMPO THUMS UP LIMCA MAAZA NIMBO FRESH THUMS UP LIMCA MAAZA

Q4) Which company Visi Cooler are you having?

PEPSI

COCA COLA

BOTH

Q5)Whether the purity of the refrigerator is maintained or not? YES Q6)Which brand is preferred by the customers? PEPSI BRANDS COCA COLA BRANDS NO

Q7)Are you satisfied with the distribution network? YES NO

Q8)Are you aware of the various schemes run by the coca cola? YES NO

Q9) Which companyadvertisement and sales promotion activities are better? PEPSI COCA COLA Q10)Your daily sales? 1-2 CASE 6-10 CASES More than 10 CASES 3-5 CASES

Q11)Do you think promotional activities can increase sales? YES Q12) According to you a company should improve upon? Distribution Service Sales Promotion Schemes Q13)How would you rate Coca Cola? Excellent Average Very Bad COMPLAINTS OR SUGGESTIONS. Very Good Bad NO

Thank you very much for your kind cooperation!!!!!!!