PROJECT REPORT

ON

COKE AND PEPSI LEARN TO

COMPETE IN INDIA

WITH REFERENCE TO

(RANCHI)

SUBMITTED ON THE PARTIAL COMPLETION OF

POST GRADUATE DIPLOMA IN MANAGEMENT(PGDM)

SUBMITTED BY: -

MANENDRA SHUKLA

Course – P.G.D.M

Session – 2010-2012

PREFACE

Any training programme sharpens those instincts, which serves as a fulfillment of theoretical

grounding. As the present day business world is a highly complex one where Human

Ingenuity and Acumen is sharpened by highly specialized knowledge in various branches

pertaining the running and conducting. The research project in our basket was- Analysis and

achievements of pre sale concept and the direct distribution system launched by the company

in Ranchi territory; to study the present the distribution channel of Coca Cola Products,. The

different organized markets that I have chosen for our research was main markets of Ranchi.

The sample unit taken was organized retail stores of capital city of Jharkhand i.e Ranchi.

Research is a feedback that any organization sought for the purpose of effective policy and

decision making. It is the systematic problem analysis, model building & fact finding for the

purpose of important decision-making & control in the making of goods and services.

Summer Project is a part of our curriculum so that we get exposed to the practical side our

theoretical know-how. This is basically designed to the real life situation. In this training

programmed, the students use their academic knowledge practically which polishes the

decision making abilities of MBA graduates. For developing healthy managerial and

administrative skills of potential managers it is necessary that theoretical knowledge must be

supplemented with exposure to real life business environment. It is a practical training that

the measuring itself is realized.

Conventional academic medium cannot sell anything practically down to real and practical

market knowledge is required to make a hard core corporate. This research work gave me the

opportunity to apply conceptual skills in practice and to learn the art of conducting study and

presenting its findings in a systematic and scientific way.

ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Mr. J.K. Choudhary for giving

me an opportunity to work on a live project. I am very grateful to Mr. Anjani

Kumar for giving me proper guidance in completing the project from beginning.

I am also very grateful to Sales team leader Mr. Apoorva Dubey and Mr. Vishal

Ranjan who had given their guidance which helped me to complete my project

successfully. At last I want to thank all the staffs of human resource, stores,

shipping and marketing for their co-ordination without whom it would be very

difficult for me in achieving my target and making the project successful.

CONTENTS

HEADINGS PAGE NO.

1. Company Profile - 5

2. SWOT Analysis - 23

3. About Competitor - 25

4. Rationale of the study - 26

5. Distribution - 27

6. Market Map of Ranchi - 31

7. Research Methodology - 32

8. Observation - 36

9. Findings and Analysis - 40

10. Conclusion - 54

11. Suggestions & Recommendations- 55

12. Limitations - 56

13. Annexure - 57

COMPANY PROFILES

HISTORY OF COCA-COLA

JOHN PEMBERTON

The world has changed in many ways since pharmacist; John Stith Pemberton first introduced

the refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the product mean so

many things to hundreds of Millions of consumers around the globe. Coca-Cola products are

served more than 705 million times every day, quenching the thirsts of consumers in more

than 195 countries in every climate. That's a long way to come after such a modest beginning.

May1886 - 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, suggested the name and penned, in the unique flowing script that is famous

worldwide today.

1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold

25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color

associated with the No. 1 soft drink brand ever since.

1891 - Atlanta entrepreneur Mr. Candler had acquired complete ownership of the Coca-Cola

business for $2,300. Pemberton was forced to sell because he was in a state of poor health

and was in debt. Within four years, Candler's merchandising flair helped expand consumption

of Coca-Cola to every state and territory.

1917 - 3 Million Coke's sold per day. "COCA-COLA" is the world’s most recognized

trademark.

1919 - The Coca-Cola Company was sold a group of investors for $25 million.

1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff for 25

million dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president for

six decades. Woodruff's leadership took the business to unrivaled heights of commercial

success, making Coca-Cola an institution the world over.

During the Woodruff era, Mr. Woodruff made a promise to the armed forces of the United

States to supply Coca-Cola to every serviceperson. He said that costs and location did not

matter; he supplied 5 billion bottles to the service.

1925 - 6 Million Coke's sold per day.

1927 - The first Coca-Cola radio advertisement.

1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time.

1943 On June 29, an urgent cablegram arrived from General Dwight Eisenhower's Allied

Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve American

servicemen overseas. Eventually, 64 plants were set up during WWII.

1950 - Advertising on the television began. Currently Coca-Cola is advertised on over five

hundred TV channels around the world.

1961 - Sprite was introduced.

1971 - The song "I'd like to Buy the World a Coke" was released.

1978 - The two liter bottle was introduced, and during that same year the company also

introduced plastic bottles

1982 - Diet Coke was introduced in July.

1985 - The Coca-Cola Company made what has been known as one of the biggest marketing

blunder. They stumbled into a new formula in efforts to produce diet Coke. They put forth 4

million dollars of research to come up with the new formula.

The new formula was a sweeter variation with less tang, it was also slightly smoother.

The factor that influenced the change was that Coke's market share fell 2.5 percent in four

years. Each percentage point lost or gain meant 200 million dollars. This was the first flavor

change since the existence of the Coca-Cola company. The change was announced April 23,

1985 at the Vivian Beaumont Theater at the Lincoln Center. Some two hundred TV and

newspaper reporters attended this very glitzy announcement. The change to the world's best

selling soft drink was heard by 81 percent of the United States population within twenty-four

hours of the announcement. Within a week of the change, one thousand calls a day were

flooding the company's eight hundred number.

Most of the callers were shocked and/or outraged, many said that they were considering

switching to Pepsi. Within six weeks, the eight hundred number was being jammed by

Six thousand calls a day. The company also fielded over forty thousand letters, which were

all answered and each person got a coupon for the new Coke. Many American consumers of

Coca-Cola asked if they would have the final say. When Pepsi heard that the Coca-Cola

Company was changing its secret formula they said that it was a decision that Pepsi tastes

better. Roger Enrico, the president and CEO of Pepsi-Cola wrote a letter to every major

newspaper in the U.S. to declare the victory. Coca-Cola management had to decide: Do

nothing or "buy the world a new Coke". They decided to develop the new formula.

1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke was

brought back in addition to the new one. This was greatly due to dropping market share and

consumer protest. The market share fell from a high of 15 percent to allow of 1.4 percent.

This was said to be a classic marketing retreat. Coca-Cola executives admitted that they had

goofed by taking the old Coke off the market.

The Coca-Cola Company’s eight hundred number received eighteen thousand Calls of

gratitude. The comeback of old Coke drove stock prices to the highest Level in twelve years.

This was said to be the only way to regain the lead on the Cola wars.

1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.

1996 - The Summer Olympics was held in Atlanta, Georgia, the home of Coca-Cola.

HISTORY OF PEPSI

PEPSI, company founded by CALEB D BRADHAM in 1890 at North Carolina in USA.

Its CEO is ROGER ENRICO and in India Pepsi –CO. Holding its chairman MR.RAJIV

BAKSHI. The head quarter of Pepsi-CO.in India is at Gurgaon. Presently it is operated in

196 countries.

Pharmacist CALEB invented it to cure the disease ―DISPARSIA‖. It is from this word that

was related to Pepsi. Soon it entered market American market as soft drink which at

that time was mostly dominated by coca-cola, but soon Pepsi was able to dominate the

cola market and there after it has been no looking back. Pepsi and coca-cola are engaged

in ferocious cold war that has taken the whole world by storm.

Pepsi stands 51 positions among the fortunate 500 companies of the world. Its total capital is approx

$3000 crore and total sales annually is worth $37 crore, half of which comes from

beverages and other half from the sack foods division. The beverages arm of the Pepsi co.

Is Pepsi-cola company and the snack –food company is called frinto –lay –inc. The year

1998 is the centennial year of Pepsi. Its total profit in the year 1996-1997 was worth Rs.45

crore approx. The total number of employees engaged in this business is 4.25 lakhs

globally.

EMPLOYMENT OPPORTUNITIES:

Pepsi provides direct and indirect employment to person in supplying it’s raw materials,

packing materials, distribution vehicles, glass bottles, plastic crates, display racks etc. And

to small artisans, painting and small traders in market places activities.

All the Pepsi business in India is either in Industries with backward linkages with farmers

or in service industries, being highly distribution oriented. It Pepsi system operates over

1000 trucks (direct operation) 8000 three-wheeler (distributors) and at least 1000 push

carts, serving over half a million outlets in India. By the year 2008 the number of outlets

to be served is expected to be doubled.

COCA COLA IN INDIA

Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveals its

formula to the government and reduces its equity stake as required under the Foreign Exchange

Regulation Act (FERA) which governed the operations of foreign companies in India. After a 16-year

absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Cola

ownership of the nation's top soft-drink brands and bottling network. Coke’s acquisition of local

popular Indian brands including Thumps Up (the most trusted brand in India), Limca, Mazaa, Citra

and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also

strong consumer preference. This combination of local and Global brands enabled Coca-Cola to

exploit the benefits of global branding and global trends in tastes while also tapping into traditional

domestic markets.

Leading Indian brands joined the Company's international family of brands, including Coca- Cola,

diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched the

Kinley water brand and in 2001, Shock energy drink and the powdered concentrate Sun fill hit the

market.

From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one of the

country’s top international investors. Coca-Cola India achieved 39% volume growth in 2002 while

the industry grew 23% nationally and the Company reached breakeven profitability in the region for

the first time. Encouraged by its 2002performance, Coca-Cola India announced plans to double its

capacity at an investment of $125 million(Rs. 750 crore) between September 2002 and March 2003.

Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven wholly-

owned bottling operations supplemented by seventeen franchisee-owned bottling operations and a

network of twenty-nine contract-packers to manufacture a range of products for the company. The

complete manufacturing process had a documented quality control and assurance program including

over 400 tests performed throughout the process.

The complexity of the consumer soft drink market demanded a distribution process to support

700,000 retail outlets serviced by a fleet that includes 10-ton trucks, pen-bay three wheelers, and

trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the cities.25

In addition to its own employees, Coke indirectly created employment for another 125,000 Indians

through its procurement, supply, and distribution networks.

ORGANISATION CHART

VICE PRESIDENT

REGIONWISE

AGM

PLANT MANAGER

RTM MANAGER

FINANCE MANAGER

CHANNEL MANAGER

SALES MANAGER

MARKETING EXECUTIVES

AREA CAPACITY

DEVELOPMENT MANAGER

SALES TRAINEE

CEO

HIERARCHY OF THE ORGANISATION

CHIEF EXECUTIVE OFFICER

RVP

AGM/AOD

FINANCE RTM MANAGER

MARKETING SALES MANAGER

PRODUCTION HR

ACCOUNTS MARKETING EXECUTIVES

RTM EXECUTIVE

STL

MD

PURCHASE

ASM

R&D QUALITY

PRICING POLICY FOR INDIAN MARKET

Coca-Cola and Pepsi also made the right moves by adapting to cultural barriers in India. One such

barrier was the affordability of products for Indians. Because India is a country where people are

known to live on very little a day, the idea of getting people to spend what little they have on a soft

drink could be quite a stretch. However Coca-Cola India went with an aggressive pricing policy and

reduced the price of their soft drinks in 2003 from 15% to 25% nationwide. This move allowed both

companies to offer products that were affordable to the target market in India but also encouraged

more Indians to consume Pepsi and Coca-Cola products. Both companies also created smaller sized

bottles to allow for lower prices for Indian consumers. Coca-Cola and Pepsi created bottles in size

from 200 ml to 500 ml to adapt to cultural needs and increase their sales. By offering smaller sized

bottles many consumers also increased the frequency in which they were purchasing the soft drinks.

MEDIA PROMOTION

To give a broad look to the marketing strategies of Coca-Cola the following points can be taken into

consideration regarding their opportunity and threat analysis.

Coca-Cola has already dominated many existing brands of Pepsi; however it may be possible that

in the next few years Coca-Cola is going to eat the entire soft drink market.

Again it is the threat that the monopoly may not exist after boycotting the Pepsi as because of the

chances of arrival of the local brands, these companies may be a threat for Coca-Cola in the next few

years.

Perhaps the current largest threat for Coca-Cola apart from Pepsi is a spiritual and patriotic issue

which is also a threat for Pepsi, this is the spiritual media channels like Astha and Sanskar.

VISION

Profit: maximizing return to shareowners while being mind full of Our overall responsibility

Planet: Being a responsible global citizen that makes a difference.

People: being a great place to work where people are inspired to be the best they can be.

Partners: nurturing a winning network of partners and building mutual Loyalty.

Portfolio: bringing to the world a portfolio of beverage brands that anticipate and satisfy people

desire and need.

MISSION

Create consumer products services and communications customer service and bottling system

strategy process and tools in order to create competitive advantage and deliver superior value to-

Consumers as a superior beverage experience.

Consumers as an opportunity to grow profit through the use of finished drinks.

Bottlers as an opportunity to make reasonable to grow profits and value added

Suppliers as an opportunity to make reasonable when creating real value added in environment of

system wide teamwork, flexible business system and continuous improvement.

Indian society in form of contribution to economic and social development.

ACHIEVEMENTS

1. Coca-Cola Wins Golden Peacock Awards For Environment Management In India.

2. Coca-Cola India Wins Golden Peacock Global Award for Corporate Social Responsibility.

3. Community Recognition to Coca-Cola India.

4. ’Water Efficient Unit’ Award to Coca-Cola India.

5. Coca-Cola wins Bhagidari Award- Fourth time in a row.

6. World Environment Foundation Awards - 2005 Golden Peacock

Environment Management Award to Kaladera unit

PRODUCT PROFILE

DIFFERENT BRANDS OF COMPANY

The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit

juices and bottled mineral water. The Company is always looking to innovate and come up with,

either complete new products or new ways to bottle or pack the existing drinks. The Coca-Cola

Company has a wide range of products out of which the following products are marketed by

HCCBPL:

In the Cola Section:

In the Lemon Section

In the Orange section:

In the mango section:

In the juice section :

In the Soda Water and Bottled Mineral Water section:

BRANDS TAGLINE

Thums up - Taste the thunder

Coca-Cola - Open happiness, Thanda matlab Coca-Cola

Sprite - Seedhi baat no bakwaas , clear hai

Limca - Fresh ho jao, mazza taazgi ka

Fanta(Apple) - Go bite

Mazaa - Bina guthli wala aam

BRAND AMBASSDORS

Thums up - Akshay Kumar

Coca-Cola - Aamir Khan, Imran khan

Sprite - Shahrukh Khan

Fanta - Genelia D’souza

Limca - Riya Sen

Mmpo- Nikhil Chinnappa

PRODUCTS WIDTH AND DEPTH

VARIAN

T

200ML 250ML 300ML 330ML 500ML 600ML 1LT 1.25LT 1.5LT 2LT

COCA

COLA

Y N Y Y N Y N Y N Y

THUMPS

UP

Y N Y Y N Y N Y N Y

MAZZA N Y N N Y N 1.2LT N N N

LIMCA Y N Y Y N Y N Y N Y

DIET

COKE

N N N Y N N N N N N

FANTA Y N Y Y N Y N Y N Y

SPRITE Y N Y Y N Y N Y N Y

MMPO N N N N 400ML N Y N N N

MMNF N N N N 400ML N N N N N

KINLEY

WATER

N N N N Y N Y N N N

KINLEY

SODA

N N Y N Y Y N N N N

NUMBER OF BOTTLES IN A CASE

1 CARATE (200ML,250ML,300ML) 24

600ML 24

1.2LT 12

1.25LT 12

2LT 9

400ML 24

SWOT ANALYSIS

SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the

development of marketing plans. It accomplishes this by assessing an organizations Strength (what an

organization can do) and Weakness (what an organization cannot do) in addition to Opportunities

(potential favorable conditions for an organization) and Threats (potential unfavorable condition for

an organization).

SWOT analysis is an important step in planning and its value is often underestimated despite the

simplicity in creation. The role of SWOT analysis is to take the information from the surrounding and

separate it from internal issues (strength and weaknesses) and external issues (opportunities and

threats). Swot analysis assists the firm in accomplishing its objectives (strength or opportunity) and

overcoming the obstacles (weakness or threats).

STRENGTH

1. Better network – covers whole of the city.

2. Brand recognition – brand image among customers

3. Brand equity – high equity in the market.

4. Advertisement policy – Coca Cola Company has endorsed with famous Personalities like Aamir

Khan, Hrithik Roshan, Akshya Kumar, Priyanka Chopra,Kareena Kapoor and many more.

5. Bottling plants –27 wholly-owned bottling operations Supplemented by 17 franchisee-owned

bottling operations and a Network of 29 contract-packers to manufacture a range of products for the

company.

6. Promotional schemes – to activate sales company is providing Umbrellas, Chairs, Tables, racks,

flanges, visicooler & glasses.

WEAKNESSES

1. Weak and irregular supply.

2. Irregular visit of EXECUTIVES.

3. Low product availability.

4. Scarcity of manpower.

OPPORTUNITY

1. Greater opportunity in rural areas where coca cola can gain a Substantial base.

2. 70% of total population lies in rural area, and market penetration of soft

Drink is only 12% hence there is greater scope of increasing revenue of the

Coca cola Company.

3. Opening new outlets in the area where the coca cola’s market share is less.

4. Company should offer schemes for long term profit to the retailer so that they get involved in

long term association.

5. Covering greater institutional areas as younger generation gets much Fascination out of such

beverages.

THREATS

1. Impulse customer’s buy whatever is in the offer, so company should

Give offers regularly.

2. Health conscious people are boycotting soft drinks.

3. Threat from Competitors as they give offers at cheaper rates than coca cola.

4. It’s too seasonal

5. People are becoming health conscious

ABOUT THE COMPETITOR

PepsiCo, Inc. (the "Company") was incorporated in Delaware in 1919 and was reincorporated in

North Carolina in 1986. PepsiCo is engaged in the beverage and snack food businesses. On October

6, 1997, the Company spun off certain of its restaurant businesses, consisting of Pizza Hut, Taco Bell

and KFC, to shareholders as an independent publicly-traded company. In addition, Company

disposed of PFS, its restaurant distribution operation and its noncore restaurant businesses.

PepsiCo's beverage businesses, which operate as Pepsi-Cola Company, are comprised of two

business units: Pepsi-Cola North America ("PCNA"), and Pepsi-Cola Company International ("PCI").

PCNA manufactures and sells beverage products, primarily soft drinks and soft drink concentrates, in

the United States and Canada. PCNA sells its concentrates to licensed bottlers ("Pepsi-Cola bottlers").

Under appointments from PepsiCo, Pepsi-Cola bottlers manufacture, sell and distribute, within

defined territories, soft drinks and syrups bearing trademarks owned by PepsiCo, including PEPSI-

COLA, DIET PEPSI, MOUNTAIN DEW, SLICE, MUG, ALL SPORT and, within Canada, 7UP and

DIET 7UP (these products are sometimes referred to as "Pepsi-Cola beverages"). Pepsi-Cola

beverages are manufactured in approximately 165 plants located throughout the United States and

Canada. PCNA operates approximately 60 plants, and manufactures, sells and distributes beverages

throughout approximately 450 licensed territories, accounting for approximately 60% of the Pepsi-

Cola beverages sold in the United States and Canada.PCI manufactures and sells beverage products,

primarily soft drinks and soft drink concentrates, outside the United States and Canada. PCI sells its

concentrates to Pepsi- Cola bottlers. Under appointments from PepsiCo, Pepsi-Cola bottlers

manufacture, sell and distribute, within defined territories, beverages bearing PEPSI-COLA, 7UP,

MIRINDA, DIET PEPSI, PEPSI MAX, MOUNTAIN DEW, DIET 7UP and other trademarks. PCI

operates 37 plants bottling PepsiCo beverage products. There are approximately 275 plants operated

by independent licensees or unconsolidated affiliates bottling PepsiCo's beverage products which are

available in 186 countries and territories outside the United States and Canada. Principal international

markets include Argentina, Brazil, China, India, Mexico, the Philippines, Saudi Arabia, Spain,

Thailand and the United Kingdom.

RATIONAL OF THE STUDY

Sales and distribution is an integral part of marketing. Here, Coca Cola the leading brand in soft

drinks worldwide. Coke has maintained its brand image with high precision. The marketing strategy

of Coke is very stringent than others. The main features in their marketing by their offerings and its

sales and distribution. It’s my gratitude to work with Coca Cola Company especially in marketing

department. I have been placed their in sales and distribution department for my internship. The

research work was not as easy as Coca Cola is very strict in their marketing policy. In the beginning

the main reason for conducting this study was to know the proper allocation of distribution to the

suppliers and also to know about the products sales. Further, it is to understand the availability of the

product and to check out that there is the proper advertising of the product and also to know the

working condition of the visi cooler provided by the company. Also to know the various scheme

provided by the Coca Cola is really applied in the market or not. And to compare the schemes with

Pepsi products. The study is done to understand the problem of the retailers, and understanding the

presale concept.

RESEARCH OBJECTIVE

PRIMARY OBJECTIVE:

TO ANALYZE HOW COKE AND PEPSI LEARN TO COMPETE IN INDIA

SECONDARY OBJECTIVE:

1. To analyze the distribution channel system.

2. To check the brand availability.

3. To analyze the effectiveness of the schemes launched by the company.

4. To find the retailer’s satisfaction..

5. To ensure the visibility of the product.

6. To give valued suggestion to the company.

DISTRUBUTIONDistribution of coca cola is done basically in two ways:-

a) Direct operation.

b) Indirect operation.

But the distribution of Coca Cola varies from place to place. In India Coca Cola is doing his

distribution by direct operation, indirect operation & by both also. Especially in Ranchi coca cola is

doing its distribution by both direct operation & indirect operation.

DISTRIBUTION NETWORK

HCCBPL has a wide and well-managed network of salesmen appointed for taking up the

responsibility of distribution of products to diverse parts of the cities. The distribution channels are

constructed in such a way that the demand of customers is fulfilled at the right place and the right

time when they need it. A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail

Stock --- Retail Shelf --- Consumer

The customers of the Company are divided into different categories and different routes, and every

salesman is assigned to one particular route(PJP), which is to be followed by him on a daily basis. A

detailed and well-organized distribution system contributes to the efficiency of the salesmen.

DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY

Coca-cola Company distributes their schemes according to area. Area or place where soft drinks sold

in a large manner, on those place company gives good schemes to shopkeeper and retailer. Place like

railway station bus stand are consider in this category and place which have low selling where

company gives small schemes to the shopkeeper.

DIRECT OPERATION:

Here company does its distribution by himself. There is no role of middle man. Every activities of a

distribution process is under the control of the company. Here coca cola runs its own vehicles in that

particular area for the distribution. By direct operation company gains a lot. The direct operation of

the coca cola is as follows:-

In 2006 there were only 14 towns under DSD which has been increased to 48 towns by 2009.

COMPANY

COMPANY DSD

RETAILERS CONSUMERS

INDIRECT OPERATION:

Here in the distribution process middleman’s role came into existence. In coca cola the distributor is

the middle man. Everything is not under the control of the company. Basically Coca Cola Company

selects a person for some specific areas for the distribution process.

Indirect operation of coca cola in Ranchi is as follows:--

COMPANY

COMPANY

DEPOT

DISTRIBUTOR

RETAILER

CONSUMER

The number of distributors in India was 4100 in 2006 which has been reduced to 2740 in 2009.

AREAS OF DIRECT OPERATIONS IN RANCHI

AREA ROUTE ID

HARMOO RX 9002

HINOO RX9003

HATIA RX9004

UPPER BAZZAR RX9005

KANKE RX9006

MURI RX9007

ASHOK NAGAR RX9008

DORANDA RX9009

DHURWA RX9010

HIGHWAY RX9011

MAINROAD1 RX9012

MAINROAD2 RX9013

STATION ROAD RX9014

AZAD BASTI RX9015

PURLIYA ROAD RX9016

KATATOLI RX9017

KOKAR RX9018

CIRCULAR ROAD RX9019

HINDPIDI RX9020

CHUTIA RX9021

KHADGADA RX9022

BARIATU RX9025

KACHERI RX9026

NAMKUM RX9027

MARKET MAP OF RANCHI:

RESEARCH METHODOLOGY

The topic “COKE AND PEPSI LEARN TO COMPETE IN INDIA” for the project work was

suggested to me by the RTM of Hindustan Coca-Cola Beverage private limited. He asked me to

conduct a survey in areas where the coca-cola market is weak as well as high and to make a study of

its major competitor “PEPSI”..

Armed with the ideas provided to me by the RTM and the Area Sales Manager, I went ahead for the

research. In order to collect samples during my survey I planned to take recourse to the Random

Sampling because as the name suggests, in this method of sampling any unit of population can be

selected at random. In my research, the retailers in Ranchi comprise the universe. Therefore, they are

the ones who constitute as the main source of information to me.

SAMPLE SIZE FOR SURVEY

The survey was done in about 200 shops including eateries

& drinkeries, groceries and other conveniences.

SCOPE OF THE STUDY

1. By this study company can know its growth.

2. This study helps the company to know their actual position in the market.

3. This study also helps to get a clear idea about where the co. is lagging behind & where it is

ahead of its compititors.

METHOD OF DATA COLLECTION

There are different methods of data collection. They are:-observation, experimentation, uncontrolled

experimentation, controlled experimentation, survey and focus group. Here the data are collected by

market survey.

MARKET SURVEY

Market survey is one of the most widely used MR technique .it is at times viewed as synonymous

with marketing research. This is erroneous. It has to be understood clearly that market survey is just

one of the techniques of MR and is not synonymous with MR. It is just one of the methods of

collecting marketing information required for a given marketing assignment. It is used when the

required data is not available with the company’s internal records, as well as external published

source. Here the researcher carries out opinion pools involving sales persons, dealers, traders and

experts. Trade surveys are very common. In conducting these surveys, the researcher has to carefully

select the instrument and methods of surveying.

METHODOLOGY

The data can be dichotomized into two types: primary data, secondary. In this study the data collected

was mainly primary data. The respondents were from the area of Ranchi. The secondary data were

obtained from the Coca-Cola city office. The sample size collected for the various objectives where,

from the total number of outlet the sample size determined was: 200

INSTRUMENT FOR DATA COLLLECTION:

The primary data collected through the survey method for the purpose of the study. The survey was

done by using questionnaire method. Beside this I had an informal discussion with the retail outlet.

Secondary data: information regarding the organization was obtained from secondary sources like

company journals, company websites, publications & records.

RESEARCH DESIGN

The design appropriate for this research is Exploratory Research Design. Exploratory research studies

are also termed as formulative research studies. The main purpose of such studies is that of

formulating a problem for more precise investigation or of developing the working hypothesis from

an operational point of view. The major emphasis in such studies is on the discovery of ideas and

insights. As such the research design appropriate for such studies must be flexible enough to provide

opportunity for considering different aspects of a problem under study in built flexibility in research

design is needed because the research problem, broadly defined initially as transformed in to one with

more precise meaning in explanatory studies, which fact may necessitate changes in the research

procedure for gathering relevant data.

The survey was conducted in RANCHI by asking from dealers.

The Exploratory Research Design could be accomplished by study of secondary data:

Secondary data are those which have already been collected by someone else and which have

already been passed through the statistical process.

Company is product information brochure.

Various articles related to consumer electronics published in the newspapers & magazines.

Company’s profile brochure.

DATA ANALYSIS AND INTERPRETATION

SURVEY OF OUTLETS IN RANCHI :

There are some specific areas covered for the purpose of survey in the state capital of Jharkhand,

Ranchi. Generally these areas are weaker in terms of sales. To find out the reason of retailer’s

unsatisfaction, loop hole in the distribution system and the improvement to be needed for high

satisfaction as it will increase the sales volume, the survey was done.

AREA COVERED:

HINOO

HARMOO

MAIN ROAD1

MAINROAD2

HINDPIDI

RATU ROAD1

RATUROAD2

HIGHWAY1

HIGHWAY2

BARIYATU

MORABADI

PURLIYA ROAD

KHADGADA

CIRCULAR ROAD

KACHERI

KOKAR

UPPER BAZZAR

ASHOK NAGAR

KANKE

NAMKUMM

AZAD BASTI

MARKET OBSERVATIONS:

DEALER’S RESPONSE

A. Management Problems

1. Company does not support dealers

No regular visit from the sales people.

2. Dealers are annoyed with the sales representative.

No stock delivery after being ordered.

3. Services are very poor.

No new price list

Billing problem

4. Replacement problem (Time Consuming and Negligence).

Replacement of BBD stocks pending since 6 months or more.

B. Market Picture

No direct letter is given to the retailer regarding the schemes introduced by the company.

Not proper supply of each flavor (SKU).

Poor delivery of stocks against order.

FINDINGS AND ANALYSIS

1. Type of outlet visited.

General Store Pan Store Sweet shop Canteen0

10

20

30

40

50

60

70

80

90

Outlet Visited

Outlet Visited

2. Which brand of soft drinks you deal in?

Coca Cola Pepsi Both Others0

10

20

30

40

50

60

70

80

90

100

Series 1

Series 1

3. Which company’s signage you have in your outlet?

Coca cola Pepsi Both No signage0

10

20

30

40

50

60

70

80

Series 1

Series 1

4 Which company’s visi- cooler you have in your outlet ?

coca cola pepsi Both Mixed0

20

40

60

80

100

120

Series 1

Series 1

5. Which company have better distribution network?

coco cola pepsi both0

20

40

60

80

100

120

Series 1

Series 1

6. Which is most preferred size of the bottle by customer?

200ml 300ml 500ml 1000ml 1500ml 2000ml0

10

20

30

40

50

60

Series 1

Series 1

7. Do the customer know the difference between branded

and unbranded soft drinks?

Yes No0

20

40

60

80

100

120

140

160

Series 1

Series 1

8. What type of cold drinks you are selling?

Branded Unbranded Both0

10

20

30

40

50

60

70

80

90

Series 1

Series 1

9. Major age group of customers who buy soft drinks?

Category 1 0-15 15- 25 25-35 35-45 45-550

10

20

30

40

50

60

Series 1

Series 1

10. What do you feel about the price of branded soft drinks ?

yes no no reply

0

20

40

60

80

100

120

Series 1

Series 1

11 Do you feel a price reduction will increase the sales of

branded soft drinks ?

yes no0

20

40

60

80

100

120

140

160

180

200

Series 1

Series 1

12. Do you think that aggressive advertising further increase

the sales volume of Pepsi?

New schemes Refrigeration system0

20

40

60

80

100

120

Series 1

Series 1

13. What are your suggestion to improve the sale ?

New Sc

heme

refreg

eration sy

stem

adve

rtisem

ent

credit f

ecility

regular

supply

0

10

20

30

40

50

60

70

80

Series 1

Series 1

CONCLUSION:

1. The Beverages market can be segmented mainly on price and quality basis as all the players in

the market have matched same quantity standards.

2. The customers basically have very thin idea about the product and hence the role of dealer

becomes significant.

3. Most of the customers are driven either by past brand image or recent ad-commercials.

4. The brand awareness is most important determinants, pricing takes a back seat.

5. Retailers are keen to sold Coca Cola ,because of the bran and quality maintained by it.

6. The whole research shows that there are only two companies dominating in the soft drinks

market- coca-cola and Pepsi. There is neck – to- neck competition in between these

companies.

SUGGESTIONS & RECOMMENDATIONS

1. Coca Cola needs to view its intermediaries in the same way that it views its end uses. The

company should determine channel numbers needs and should provide Capability building

program’s to improve intermediaries performance.

2. Company can keep the retailers happy by paying regular visits to them and also ask them to

continuously monitor the consumers and their problem.

3. Company use motivators like high margin, special deals, advertising allowance etc.

4. The company should clearly communicate what it wants from its retailers in the way of

market coverage, market development and marketing information.

5. Coca Cola has competitions with Pepsi. Therefore it advisable that prompt and proper service

be maintained. Also the product quality should be checked before delivery.

6. Coca Cola must periodically evaluate its channel performance against standards such as sales ,

average inventory levels, customer delivery time, treatment of damaged goods and

cooperation in promotional training program. It is important that under performers need to be

re-motivated or terminated.

7. Brand image has been the first and foremost important thing in Fast Moving Consumer Goods

(FMCG) segments. Coca Cola has made good brand reputation among the customers. It gets

hamper due to weak supply that is provided to retailers and consumers. . This will increase the

satisfaction level of the customers.

8. Retailers and Consumers have sense of belongingness towards the Hindustan Coca Cola

Beverages Pvt. Ltd.(HCCBPL).

It can be achieve by various ways:

The quality of interaction between the company official & retailers should be improved.

Schemes should be made such that customers and retailers both get benefited through the

schemes.

Monthly meetings may be arranging to access the performance of poor markets . This will

give them a sense of responsibility.

LIMITATIONS

The major limitations of the project work under study is time , since it is to be completed

within a period of two months and this time period may not be sufficient to undertake a

comprehensive study.

This study is exclusively from HCCBPL, Ranchi and the results cannot be extrapolated to

other organization.

Being a project student, it created some hurdles in getting the true feedback from the

respondents.

Being a student financial constraints was also there.

The area was too big to cover as the market share is about 82%.

QUESTIONAIRE

Q1. Type of outlet

(a) General store (b) Pan shop

(C) Sweet shop (d) Canteen

Q2. Which brand of soft drinks you deal in ?

(a) Coca cola (b) Pepsi

(c) Both (d) Others

Q3. Which company’s signage you have in your outlet?

(a) Coca cola (b) Pepsi

(c)Both (d) No signage

Q4. Which company’s visi- cooler you have in your outlet ?

(a) Coca cola (b) Pepsi

(a) Both (d) Mixed

Q5. Which company have better distribution network ?

(a) Coca cola (b) Pepsi (C) Both

Q6. Which is most preferred size of the bottle by customer?

200ml 300ml 500ml 1000ml 1500ml 2000ml

Q7. Do the customer know the difference between

branded and unbranded soft drinks?

Yes No

Q8. What type of cold drinks you are selling ?

(a) Branded (b) unbranded (c) Both

Q9. Major age group of customers who buy soft drinks ?

(a) 5-15 (b) 15-25 (c) 35-45 (d) 45-55

Q10. What do you feel about the price of branded soft drinks ?

(a) Very high (b) High (c) Medium (d) Low (e) Reasonable

Q11. Do you feel a price reduction will increase the sales

of branded soft drinks ?

(a) Yes (b) No

Q12. Which medium affect the sales most?

(a)Television (b) Magazines/News papers

(c) Display (d) Wall paintings/Hoardings

Q13. Do you think that aggressive advertising further

increase the sales volume of Pepsi?

(a) Yes (b) No (c) No reply

Q14. What kind of promotional activities affect sale mostly ?

(a)Free bottle scheme (b) Prize

(c) Discount carats (d) Other

Q15. What are your suggestion to improve the sale ?

(a) New schemes

(b) Refrigeration system

(c) Advertisement

(d) Reduction in deposits

(e) Credit facilities

(f) Regular supply

BIBLIOGRAPHY

(1) Website of Hindustan Coca Cola Beverages Pvt. Ltd.

http:\ www.coca-colaindia.com

(2) Information brochure of Coca Cola.

(3) Research Methodology by C.R. Kothari.

(4) Marketing Management, Kotler & Keller.

(5) Consumer Behavior, Keith Davis.