Summer internship programme

Project report on market strategy analysis of Coca Cola soft drinks and Competitive analysis of Coca Cola Mazza juice brand from PepsiCo Slice juice and Paley Frooti juice

Contents Acknowledgement ................................................................... Error! Bookmark not defined. Executive summary.................................................................. Error! Bookmark not defined. 1. Introduction ............................................................................................................................ 2 2. Products profile of Coca Cola: ............................................................................................... 3 3. Sales and Distribution system in Indiacity............................................................................. 4 4. Objective of the study ............................................................................................................ 5 5. Scope of the research ............................................................................................................. 5 6. Research methodologies ........................................................................................................ 6 6.1- Primary data .................................................................................................................... 6 6.2- Secondary data ................................................................................................................ 6 6.3. Questionnaire: ................................................................................................................. 7 6.4.Limitations ....................................................................................................................... 7 7. SWOT Analysis Coca Cola market in Nagpur ...................................................................... 7

8. Analysis of the Coca Cola market in Nagpur ........................................................................ 8 8.1- Observations and Finding ............................................................................................... 9 8.2- Suggestions and recommendations: ................................................................................ 9 9. SWOT Analysis Coca Cola juice Mazza in Indiacity:......................................................... 10 10. Analysis of the data collection of Coca Cola juice Mazza in Nagpur: .............................. 11 10.1- Observations and Finding: .......................................................................................... 11 10.2- Suggestions and recommendations: ............................................................................ 12 11- Appendix: .......................................................................................................................... 12 11.1- Survey Questionnaire: ................................................................................................. 12

1. Introduction: Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer nonalcoholic beverage. Coca-Cola was first introduced by John Syth Pemberton, a Pharmacist, in the year 1886 in Atlanta, Georgia. He first distributed the product by carrying it in a jug down the street and customers bought the drink for five cents. The Coca-Cola Company is the worlds largest beverage company. The Coca Cola company operates in the worldwide through one of its largest beverage distribution system and consumers enjoy the Coca Cola products in more than 200 countries.

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 Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its reentry into India through its 100% owned subsidiary.

The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 1.3 million retailers.

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd, which manufactures and sells beverage through Company-owned bottling entity, thirteen authorized bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of the Coca-Cola Company, and an extensive distribution system comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells beverage to authorized bottlers who are authorized to use these to produce our portfolio of beverages. These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers across India. Coca-Cola in India is the countrys leading beverage Company. The Company manufactures and markets leading beverage brands like Coca-Cola, Thums Up, Fanta, Limca, Sprite, Maaza, Minute Maid, Kinley mineral water and soda.

2. Products profile of Coca Cola: There are many brands of coca-cola and they differ in taste, flavour and also in their colours.

COCA COLA: This is the most famous drink. It is generally preferred by all category of consumer.

THUMS-UP: Thums-up is a Coca Cola drink. It is hard in comparison to coke. Thums Up is known for its strong, fizzy taste. It is preferred by all section of consumers especially to teenagers.

LIMCA: Limca is considered to be lemony in taste, and comes under the category of cloudy lemon because of its colour, which is Similar to that of clouds. It is generally preferred by Children & Women. Limca comes under the category of energizes refreshment drinks in summer season.

FANTA: FANTA is orange flavour & preferred by Children & Women. Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst. It is perceived as a fun youth brand. Fanta stands for its vibrant colour and tempting taste. Fanta drink is associated with happy, cheerful and special times with friends.

MAAZA: MAAZA comes under the category of no gas drink and only based on juice. It is a non-aerated soft drink. It is preferred mostly by Children & Women. Over the years, brand Maaza has become synonymous with Mango. This has been the result of such successful campaigns like "Taaza Mango, Maaza Mango" and "Botal me Aam, Maaza hain Naam".

KINLEY SODA: This is a soda drink. It is generally used with alcohol and used by adults.

SPRITE: Sprite contains lemon flavour. And preferred by all age of people.

KINLEY WATER: Kinley water is a fresh and mineral water and market competitor of Bisleri and Aquafina. The Kinley water is known for its assurance of safety from the Coca-Cola Company.

MINUTE MAID: In Minute maid pulpy orange cold drink comes under the category of no gas and only based on orange juice. The launch of Minute Maid Pulpy Orange in India (starting with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink category.

DIET COKE: Diet Coke is sugar free flavour. Diet Coke is mostly preferred by Sugar Free patients.

3. Sales and Distribution system in Indiacity: The Coca Cola Company has a wide and well-managed distribution network in the city Nagpur. For the distribution operation, the company has appointed salesmen for taking up the

responsibility of distribution of products to different area of the city. The distribution channels are constructed in such a way that the demand of the products to the retailers is fulfilled at the right place and the right time when they need it. Every salesman is assigned to one particular route of the city, which is to be visited by him on a daily basis. For the efficient sales and distribution, the Coca cola has designated Sales officer in each area of the Indiacity to keep a close watch on the area and marketing operation of Coca cola. The potential for soft drinks is very high in Indiacity. The area of Indiacity is large enough and to satisfy the demand of cold drinks in the city, the Coca Cola had made the depot and distributions centre to deliver the products to the retailers to access the consumers.

4. Objective of the study: The objective of the research is to analyse the Marketing operation of the Coca Cola products in Indiacity and understand the juice markets and assess the sales and distribution of Coca Cola products in the Indiacity. The objective of the research is as follows. Analyse the availability and visibility of the product. To find out the present sales status of juice of Mazza and as well as find the position of PepsiCo juice and Parle juice Frooti at the retail outlets in the area. Analysis of the potential of juice Mazza

One of the most important aspects of this study is also to analyse the marketing operation scenario of Indiacity. This study analyse the availability of the product in the market. Opportunities for the Coca Cola products in the market. To analyze present mango drinks market scenario in Indiamarket area. This study provides the analysis of the sales & distribution system in the Indiacity.

5. Scope of the research:

The main scope of this research is to analyze the sales and distribution activity of Coca Cola Company. One of the most important aspects of this study is also to find the potential in the market. The other scopes of the research are as follows. Comparison of Pepsi products with its competitors. Identification of market potential. Evaluating customers need with company products. This study helps the company to know their actual position in the market. It gives information about the size of the retail network. It gives information about the services given by distributor to their retailers. It gives information about the competitors products.

6. Research methodologies: The research includes the study which was descriptive in nature. It basically aims the analysis of Coca cola market in Nagpur.

There are two ways of data collection.

6.1- Primary data: Data that have been previously collected for some project other than the one at hand.

6.2- Secondary data: Data that are gathered and assembled specifically for the research project at hand.

For the secondary data the data were collected through General observation method and personal interaction method. General observation method: The retailers were observed to have an insight about the mindset and preference for a particular brand.

Personal interaction method: For the data collection, i had interaction with retailers for market survey who provide information about the project.

For this study secondary data was collected for the research. A survey using a sample of 150160 retailers was conducted. This survey specifically deals with the analyze of the potential of Coca Cola juice Mazza and as well as make comparative analysis of the Mazza juice from PepsiCo juice Slice and Parle juice Frooti.

6.3. Questionnaire: A questionnaire consists of a number of questions printed or typed in definite order on a form or set of forms. The questions were asked to the retailers that were formed in the questionnaire. In order to achieve the research objective it is necessary to collect accurate and relevant data, secondary data are already published data collected for purpose other than the specific research needs at hand. Primary data that are collected specifically for the research situation at hand, were collected through survey, using respondents surveys is one of the ways of collecting primary data namely observations, experiments and surveys.

6.4. Limitations: Findings are based on the views expressed by retailers. So it may suffer from biased prejudices. Some of the respondents were not co-operative & many seem to be having no interest. The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out. Time limitations. Area was specified. The sample size was very small for this kind of marketing survey Some of the retailers were too busy to participate for the survey. The survey was limited only some area of the city.

7. SWOT Analysis Coca Cola market in Nagpur: SWOT Analysis STRENGTHS: Better quality of Coca Cola products than the competitors. Consumers like the Coca Cola products as comparison to competitors.

Heavy investment throughVisi cooler by Coca Cola company in the market The products produced and marketed by the Company have a strong brand image Broader product line Coca Cola Company has a good market reputation

WEAKNESS: Gaps in distribution system during peak season Communication gap between Distributors and Retailers

OPPORTUNITIES: Distribution gaps and can be rectified by arranging effective distribution system and that will result growth in sales Large and potential market in the Indiacity

THREATS: Strong competition from competitors PepsiCo and Parle Agro products

8. Analysis of the Coca Cola market in Nagpur: The survey was conducted in different location of Nagpur. For this analysis, survey of 150160 retailers was conducted through observations and personal interaction.

I had visited about 150-160 outlets comprising different retailers on the basis of their potential. Out of 150-160 shops covered in different areas, I focused on covering different shops according to location, so that I can know where coca-cola products have the best penetration.

I visited various types of shops. The retailers covered were Grocery, Confectionary, Bakery, Juice Shops, Ice Cream parlors, Food Joint, P.C.O, Dairy, and Paan Shops, Kirana store, General store, Nankeens & Sweets shops, and restaurant.

Retailers play an important role while selling products as they can divert the desire of a customer by providing same flavour of competitors.

8.1- Observations and Finding: Coca Cola is the market leader in the overall market in city Nagpur Coca Cola is the market leader and PepsiCo is the market Challenger in the whole market where I had surved. Distributors have not maintained safety stock of all the products and as a result retailers did not get all the products of Coca Cola by the required time.

Retailers did not get proper support from the distributors during peak season. Sales people and delivery persons do not visit the outlets on a regular basis. In some areas of the Indiacity I found that there is more competitors products in Coca Cola Visi cooler as compare to Coca Cola products because lack of distribution. Out of all the areas, I visited, the sales and distribution network is excellent in Darampeth area as compare to other areas.

8.2- Suggestions and recommendations: Distribution systems need to improve in the areas where the potential of the soft drinks is high. The company should more effectively handle the Visi cooler complaints. There should be regular surprise visit of the Sales Executive in the market and there should be regular visit of the Sales Officer to retailers in the market where the potential of the sales is very high and to the monopoly retailers. We should try to maintain the good image of the Coca Cola products in the monopoly outlets in market by providing good quality services. By this the monopoly of the retailer will continue and it will promote other retailers to adopt Coca Cola monopoly.

Company executives should visit the counter on weekly basis. Executives should take the feedback from the retailers about the service of the sales man and the distributors. More improvement is required in the distribution network during peak seasons because the sales are at its top potential, if the distributors could not supply them, the competitors will get the opportunities to supply the products.

The salesman should regularly visit to all the retailers and especially to wherever the retailers have Coca Cola Visi cooler.

9. SWOT Analysis Coca Cola juice Mazza in Indiacity: STRENGTHS: The juice Mazza produced and marketed by the Coca Cola Company has a strong brand image Consumers like the Coca Cola juice as comparison to competitors PepsiCo juice Slice and Parle juice Frooti. WEAKNESS: Gap in distribution during peak season Shortage of Mazza juice during peak season in Tetra pack, Glass bottle and Pet bottle

OPPORTUNITY: There is huge potential for Mazza in the market of City Nagpur.

THREATS:

10

The major threats are from strong competitors parle Frooti and is also facing threats from PepsiCo Slice.

10. Analysis of the data collection of Coca Cola juice Mazza in Nagpur: The survey was conducted in different location of Nagpur. For this analysis, survey of 150160 retailers was conducted through observations and personal interaction.

10.1- Observations and Finding: Maaza has good Brand value One of the finding from the survey of retailers is that Mazza is the most preferred brand in the market but its share in the market is less because of the shortage in the market and that shortage is creating potential for competitors as Parle juice Frooti and PepsiCo juice Slice In the market, retailers want to keep juice Mazza but they are not getting the juice Mazza in Tetra pack, Glass bottle and pet bottle. The consumers ask for juice Mazza but because of non availability of that, consumers drink juice a Parle Frooti and PepsiCo slice. The retailers maintain substitute of Mazza as Frooti and Slice. In the survey of retailers, it is find that Coca Cola juice Mazza as the first most preferable brand of the customers, Parle Frooti as the second preferable brand and PepsiCo Slice as the third preferable brand. However, survey of some retailers, Frooti is the first most preferable brand. There are some retailers who have Coca Cola Visi cooler but they are not getting proper supply of juice Mazza. The retailers maintain more stock of Frooti because of easily availability. Sales of soft drinks also to an extent depend on the retailers because retailer can provide same flavor of competitors to the consumers. I found more visibility and availability of Parle juice Frooti as compare to Mazza juice in the market. Due to shortage of Mazza, some retailers have Frooti in glass bottle and they were keeping Frooti in Coca Cola Visi cooler. This indicates that sales of Frooti in glass

11

bottle are growing at the expense of Mazza in Coca Cola outlets. For this type of situation, there should be a close observance.

10.2- Suggestions and recommendations: On the basis of previous years, there should be a safety stock for juice Mazza to handle any type of shortage during peak season. The sales man should keep enough stock in the vehicle on the basis of the potential of Mazza in the market and Sales Executive & Sales Officer should keep a close watch on the distribution of Mazza.

11- Appendix:

11.1- Survey Questionnaire: QUESTIONAIRE

NAME OF THE OUTLET ADDRESS CONTACT NO.

QUES. 1SLICE)

AVERAGE DAILY SALES OF JUICE (INCLUDING MAZZA, FROOTI,

QUES. 2- SHARE OF MAZZA

12

QUES. 3- SHARE OF SLICE

QUES. 4- SHARE OF FROOTI

QUES.5- CUSTOMERS ASK FOR ANY SPECIFIC JUICE

QUES. 6- IS MAZZA AVALABLE

QUES. 7- CUSTOMERS PREFERENCE FOR JUICE AS MAZZA, SLICE AND FROOTI

QUES. 8- AVALABILITY OF FREEZE (PEPSICO OR COCA COLA OR BOTH)

QUES. 9- OUT OF ALL THE THREE JUICE WHICH JUICE HAS A MORE STOCK

13

14