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COMPANY PROFILE
COMPANY PROFILE
Coke-cola was invented with Coke leaves and the kola nut as a basis in
May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. Dr. Pemberton's fIrst
Coke leaf drink, French Wine Coke, was actually an imitation of Vin Mariani, a
Coke-wine drink invented by Angelo Mariani and the same was considered
superior than the original drink. As Dr. Pemberton was not in good health, he
sold parts of the company to Willis Venable and George Lowndes in 1887.
Neither had the time to make, market or sell Coke and they sold their share of
the company to Woolfolk Walker and his younger sister Margaret Dozier.
Dozier owned two-ninths and Walker four-ninths of the formula rights.
Later Venable somehow disposed of his portion of Coke-cola in 1887 to Joseph
Jacobs, owner of Jacobs' Pharmacy. In early October, 1887 Dr. Pemberton got
three investors with an ad and he took $2;000 from J.C. MayfIeld, A.a.
Murphey and E.H. Bloodworth. The three new partners were ready to produce
all of Pemberton's wonderful medicines. At this point the formula of Coke-cola
was officially owned by Pemberton, Walker and Dozier, and several others had
interest in it.
Despite the company running into legal problems like the French
government blocking acquisition the company in 1997, antitrust lawsuit from
Pepsi in 1998, shutting down of Belgium and France operations for two weeks
in June of 1999 the company continue to grow in all respects. The noble acts of
the Coke-Cola Company like assistance to American Red Cross and Big
Brother Big Sister and the company's value system, and quality for not only its
product but also life would continue to lead the company's growth.
PRODUCT PROFILE
PRODUCT PROFILE
Coke-Cola from an average six drinks a day at the time of invention is
consumed currently at the rate of more than 834 million drinks per day
generating sales over $15bn a year. The objective of the Coke-Cola Company is
to benefit and refresh everyone. Founded in 1886, Coke-Cola Company is the
world's leading manufacturer, marketer, and distributor of nonalcoholic
beverage concentrates and syrups, owns nearly 400 beverage brands. The
corporate headquarters is located in Atlanta, with local operations in over 200
countries around the world. Another aspect involving Coke-Cola's distribution
system is the companies' ambitious product line.
These beverages are classified into four separate groups, which consist
of the following: Carbonated Soft Drinks (CSD) - Coke, Sprite, Surge, Dr.
Pepper etc
IcoTonics-
Powerade
and Water - Desani (filtered water), and Evian (pure spring water which is
imported from Sweden.)
The Customers
The company's core brands are Coke-Cola Classic, Diet Coke, and
Sprite, which rank first, third, and fifth among all carbonated soft drinks in
North America. Coke-Cola's primary focus with these products is "instant
consumption", because that is an area in the market that has the biggest growth
potential. What instant consumption means is that Coke-Cola is trying to create
product accessibility for the consumer in an effort to increase their sales
volume without compensating the level of quality. Hence Coke Cola is
available in retail outlets, restaurants, grocery stores, or any other operation that
buys their products, and in return sells or serves these products to consumers.
Vending machines help accomplish this goal instant consumption" because they
provide ice-cold Coke-Cola products to consumers in a variety of locations.
The advantage is that consumers end up spending more than they do with the
canned drinks, which in the long run increases company profits.
Distribution
Employees at all levels throughout the distribution system take an
extremely aggressive approach to producing and delivering Coke-Cola
products in "real time" without jeopardizing the quality. This shared dedication
to the company is what has enabled Coke-Cola to saturate the national market
and begin its quest for global dominance. Internationally Coke-Cola Company
distributes 160 beverage varieties in nearly 200 countries worldwide. CokeCola owns 50% of the international soft drink market. Coke-Cola works
extremely hard to be one of the few companies in the world to successfully
reach literally billions of consumers. Coke-Cola's international distribution is
the backbone to the global approach.
International distribution for Coke-Cola began when they decided to
introduce Coke to Canada and Mexico in 1898. Within that saIne time period
Coke-Cola expanded across the Atlantic Ocean to Europe. The man responsible
for this was Charles Howard Candler, the oldest son of Coke Ccla's founder
Asa Candler. The Coke-Cola symp made an immediate impact in Europe,
which called for orders of five-gallon drums to Gennany,
Jamaica, and Panama. In 1906, the international bottling and distributing plants
were established in Panama and Cuba. Then in 1926, Coke-Cola's international
distribution began to expand even more with the help of a man named Earnest
Woodruff. He worked with his associates and Coke-Cola on organizing
international expansion by creating a Foreign Department. In1930, the Foreign
Department became a subsidiary called The Coke-Cola Export Corporation
distributing in only a few European countries and Canada. By 1940, CokeCola's sales began to increase with the expansion of bottlers in forty-five
international countries.
Coke-Cola is divided into four international geographic operating units
and one national operating unit. The four international geographic operating
groups are the Greater Europe Group, the Latin America Group, the Middle and
Far East Group, and the Africa Group. The Greater Europe Group operates in
Western Europe and is also growing in the eastern parts of Europe. The Latin
America Group covers from Tijuana, Mexico, in the north to Tierra del Fuego
in the south, which also includes operations in Central and South America. The
African Group operates in countries that make up the sub-Saharan Africa. "The
Company and its geographic operating units are led by a management team of
seasoned soft drink business veterans from
every corner of the globe" The last group is the Middle and Far East Group
operates in the most populated areas of the world. This group manages the
countries of the Pacific and Middle East. These countries consist of Japan,
Australia, China and India.
Coca Cola in India
After a 16-years absence, Coke-Cola returned to India in 1993. Coke
Cola India has made significant investments to build and continually improve
its business in India, including new production facilities, wastewater treatment
plants, distribution systems and marketing equipment. During the past decade,
the Coke-Cola system has invested more than US$ 1 billion in India. In 2003,
Coke-Cola India pledged to invest a further US$100 million in its operations.
Coke-Cola business system directly employs approximately 6,000 local people
in India and indirectly created employment for more than 125,000 people in
related industries through our vast procurement, supply and distribution
system. The Coke-Cola system in India comprises 27 wholly-owned companyowned bottling operations and another 17 franchisee-owned bottling operations
A network of 29 contract packers also manufactures a range of products for the
Company.
Coke-Cola India has 50 per cent market share nationally in the soft drink
segment. Despite accumulating losses of Rs 2,086 crore in its bottling
subsidiary, Hindustan Coke-Cola Beverages, in the last two years, the cola
giant has signaled its intention to stay the long haul in India. Coke-Cola India's
biggest growth has come from Kinley, its packaged water brand. Kinley has a
current market share of 35.1 per cent, nationally in this segment.
PROBLEM DEFINITION
PROBLEM DEFINITION
Whenever we think about summer we immediately recollect a product
soft drinks". Ever since the economy has opened its gate for foreigners and
foreign companies, the ultimate beneficiary is a customer because he is the
person who ultimately gets the qualitative products at the right place and at the
right time.
We have listened so many words about wars but many of us are
watching the "cola war". In this aspect every company wants to overcome the
other company in terms of price, product and availability, among this
availability occupies a major role and the present study is aimed to exploring
the potential for the increased availability of coke products, in various retail
outlets of Chennai. In this regard the study concentrates the potentiality for
further improvement of the product availability to suggest a suitable logistic
marketing strategy.
OBJECTIVES OF
THE STUDY
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Random sampling procedure has been adopted for the research for
collecting the data. To ensure proper selection, personal visits were made to
dealers in the selected area. Questionnaire method of evaluation is adopted by
conducting personal interviews. The selection of the area was based on the
proximity. To arrive at reliable estimation a properly spread out representation,
unbiased sample has been adopted. Keeping this in mind, a random sampling
procedure has been adopted for selection of dealers in the important markets in
North and Central Chennai.
ANALYSIS AND
INTERPRETATION
STATISTICAL TOOLS
STATISTICAL ANALYSIS
PERCENTAGE
CHI-SQUARE TEST
WEIGHTED AVERAGE
STATISTICAL ANALYSIS :
To fulfill the objectives of the study both conventional and non
Conventional statistical technique were used. The conventional statistical
techniques adopted in the present study are percentage analysis and Chi
Square Test.
Let us consider two attributes A and B. A is divided into two classes and B is
divided into two classes. The various cell frequencies can be expressed in the
following table known as 2 x ~ contingency table.
A
a+b
c+d
a+b
b+d
N
E (a) = (a+c) (c+d)
___________
N
E (a) = (b+d) (c+d)
___________
N
a+c
a+b
c+d
N
b+d
N (Total
Frequencies)
Note: in this Chi - Square Test, we test if two attributes A and B under
consideration is independent or not.
Null hypothesis Ho :
Degree of freedom
Where
r
numbers of rows
number of columns
WEIGHTED AVERAGE
Where the relative importance if the different items is not the same.
Weighted arithmetic mean is computed. The term 'weight' stands for the
relative importance of the different items. The formula for calculation is
Xw
wx/w where
Xw
Wx
PERCENTAGE :
Percentage is a special kind of ratio, which is used in marketing
comparison between two or more series of data.
Percentage can also be used to compare the relative items, relationships,
and the distribution of two or more series of data.
TEST NO : 1
KOLMOGOROV SMIRNOV D- TEST
To findd out the retailers opinion regarding the availability of various
soda 300ml in Chennai.
Null Hypothesis (Ho) : There is no significant difference in the availability of
various sodas.
Alternative Hypothesis (Ha) : There is significant difference in the availability
of various sodas.
Soda
availability
in 300 ml
Frequency
(F)
Fo(x)
c.f
Fe(x)
c.f
Fo(x)Fe(x)
Lehar
62
0.52
0.52
0.5
0.5
0.02
Kinley
57
0.48
0.5
Total
119
Dmax
Inference :
The test shows that calculated value (0.02) is lesser than table value
(0.13), which infers that null hypothesis, is accepted. So there is no significant
difference in the availability of sodas with reference to Coke and Pepsi.
Test No: 2
KOLMOGOROV, SMIRNOV D- TEST
To find out the retailers opinion regarding the availability of various
soda 500ml in Chennai.
Null Hypothesis (Ho) : There is no significant difference in the availability of
various sodas.
Alternative Hypothesis (Ha) : There is significant difference in the availability
of various sodas.
Soda
availability
in 500 ml
Frequency
(F)
Fo(x)
c.r
Fe(x)
c.r
Fo(x)Fe(x)
150
0.52
0.52
0.5
0.5
0.02
Lehar
137
0.48
0.5
Total
287
Kinley
Dmax
Inference :
The test shows that calculated value (0.02) is lesser than table
value(0.08), which infers that null hypothesis, is accepted. So there is no
significant difference in the availability of sodas with reference to Coke and
Pepsi.
Test No: 3
Chi-Square Test
The table showing the relationship between stock availability of Orange
flavours and the type of pack.
Null Hypothesis: The stock availability of orange flavours and the type of pack
available are independent.
Alternative Hypothesis: The stock availability of orange flavours and the type
of pack available are dependent.
Orange flavour available
Pack availability
200 ml
300 ml
500 ml
1500 ml
2000 ml
Fanta
263
24
179
49
102
Mirinda
173
12
126
29
72
Total
436
36
305
78
174
Calculations
Observed
FreQuency(O)
263
173
24
12
179
126
49
29
102
72
Expected
Frequency(E)
261
175
22
14
183
122
47
31
104
70
(O-E)2
O-E
2
2
2
2
4
4
2
2
2
2
(O-E)2 / E
4
4
4
4
16
16
4
4
4
4
0.02
0.02
0.18
0.29
0.09
0.13
0.09
0.13
0.04
0.06
1.05
Alternative Hypothesis: The stock availability of Lemon flavours and the type
of pack available are dependent.
Brand availa
Pack availability
200 ml
300 ml
500 ml
Total
Limca
274
23
162
459
Mirinda
Lemon
102
17
119
Total
376
40
162
578
Calculations:
Observed
Frequency(O)
274
102
23
17
162
0
Expected
Frequency(E)
299
77
32
8
128
34
(0-E)2
O-E
25
25
9
9
34
34
625
625
81
81
1156
1156
(0-E)2/ E
2.09
8.12
2.53
10.13
9.03
34
65.9
Test No: 5
The table showing the rank of various outlets based on the preference of
customer.
Weighted average for Coke
Rank
Measures
Total
Quality
76
90
34
200
Frequency Distribution
79
47
74
200
Credit support
45
63
92
200
Total
200
200
200
76 x 3 + 90 x 2 + 34
Quality =
3+2+1
= 442/6
= 73.67 (1st Rank)
79 x 3 + 47 x 2 + 74
Frequency distribution =
3+2+1
= 405/6
= 67.5 (2nd Rank)
45 X 3 + 63 X 2 + 92
Credit support =
3+2+1
= 353/6
= 58.8 (3rd Rank)
From the weighted average method we come to know that the first
rank goes to the Quality ~ the second rank goes to the Frequency distribution and
the third rank goes to the credit support.
Inference :
From the weighted average method, we come to know that Coke stands
first in quality and second in frequency distribution. It is very poor in giving
credit support.
Test No: 6
The table showing the rank of various outlets based on the preference of
customer.
Weighted average for Pepsi
Rank
Measures
Total
Quality
64
81
55
200
Frequency Distribution
57
43
100
200
Credit support
79
76
45
200
Total
200
200
200
3+2+1
409/6
57 x 3 + 43 x 2 + 100
Frequency distribution =
3+2+1
= 357 /6
= 59.5 (3rd Rank)
79 x 3 + 76 x 2 + 45
Credit support =
3+2+1
= 434/6
= 72.3 (1st Rank)
From the weighted average method we come to know that the fIrst rank goes to
the credit support, the second rank goes to the Quality and the third rank goes
to the Frequency distribution.
Inference:
From the weighted average method, we come to know that Pepsi stands
first in credit support and second in quality. It is very poor in frequency
distribution.
FINDINGS
FINDINGS
Exclusive Coke dealers owning their own coolers is very high, there is
always a threat for Coke to loose out to Pepsi or any other brand as
there is no bonding involved except that of business dealings.
80% of the dealers who sell both Coke and Pepsi products do not
have Coke boards to act as reminder at the point of purchase.
10 dealers who are exclusive Coke dealers have Pepsi sign boards
and sell Coke, this in the long run could de sell Coke and this conveys a
message to the consumer that the company does not take serious care
In the case of clear lime based product segments Pepsi products are
Maaza tetra is found to have a very minimum share among the coke
products in the market.
Majority of the Coke dealers are not happy with the schemes, trade
offers or consumer offer. This a potential threat while majority of Pepsi
dealers not happy with the schemes or consumer offers this is an
opportunity to be exploited by Coke.
SUGGESTIONS
SUGGESTIONS
Measures should be taken to meet out the demands of the products even
at seasonal periods.
ANNEXURE
QUESTIONNAIRE
1.
2.
Area
3.
4.
Status
:
Coke monopoly
Pepsi monopoly
Both Coca and Pepsi
Others.
5.
Cooler :
a)
b)
c)
d)
Coca
Pepsi
Both
Own
6.
Signage :
Coca
Pepsi
Others
7.
Coke
Grades
Grades
PET
PGB
Pepsi
Grades
Grades
8.
Coke :
Pack
200ml
300ml
500ml
1.51t
21t
Tetra
Pack
200ml
300ml
500ml
1.51t
21t
Tetra
Flavor
Coke
Fanta
Limca
Sprite
Thumps Up
Maaza
Pepsi :
Flavor
Pepsi
Mirinda
Mirinda Lemon
M.Dew
7 up
Slice
9.
500 Lt
300ml
Flavor
Kinley Soda
Lehar Soda
10.
Bisleri
Aquafina
Others
11.
Coca Cola.
Daily
W. twice
Pepsi :
Daily
W. twice
Alternative Days
Weekly once
Alternative Days
Weekly once
12.
P.Measur
es
Schemes
Trade
offers
Consumer
offers
Others
Pepsi :
Opinion
V.Good
Good
Average
Poor
V.Poor
P.Measur
es
Schemes
Trade
offers
Consumer
offers
Others
H.Effecti
ve
Effective
Nor Eff
Ineff
Ineffecti
ve
H.Ineffecti
ve
14.
21t
Tetra
Brand
Coke
Pepsi
Thums up
Sprite
7 up
Mountain
Dew
Limca
Mirinda
Lemon
Fanta
Mirinda
Maaza
Slice
15.
Measures
200ml
300ml
500ml
1.5 Lt.
2 Lt.
Tetra
Brand
Coca Cola
Product availability
Pepsi
Product availability
BIBLIOGRAPHY
BIBLIOGRAPHY
1.
PHILIP KOTLER
"MARKETING MANAGEMENT"
10th Edition, Printice - Hall India,
New Delhi.
2.
S.P. GUPTA
"STATISTICAL METHODS"
Sultan Chand & Co., 1999,
New Delhi.
3.
C.R. KOTHARI
"RESEARCH METHODOLOGY"
2nd Edition, Wiswa Prakashan, 2000,
New Delhi.
4.
C.R. KOTHARI
"QUANTITATIVE TECHNIQUES"
3rdEdition, 1978,
Vikas Publishing House Pvt. Ltd.,
New Delhi.