CHAPTER –II

REVIEW OF LITERATURE

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THEORETICAL FRAME WORK
Promotional is the process of taking the product to a next level in the hierarchy of
product sales by using latest trends and practices of marketing.
What is Promotional?
Promotional: Promotional decisions are those related to communicating and
selling to potential consumers. Since these costs can be large in proportion to the
product price, a break-even analysis should be performed when making promotional
decisions. It is useful to know the value of a customer in order to determine whether
additional customers are worth the cost of acquiring them.
Promotional decisions involve advertising, public relations, media types, etc.
Promotional comes under MARKETING MIX , it is an element of marketing mix.

Marketing decisions generally fall into the

following four controllable categories:

 Product
 Price
 Place
 Promotional

These four P's are the parameters that the marketing manager can control, subject to
the internal and external constraints of the marketing environment. The goal is to
make decisions that center the four P's on the customers in the target market in order
to create perceived value and generate a positive response.
There are so many decisions that can be taken by the marketing manager to decide
about the market conditions of the product and also about the sales of the product.
The ingredients in Borden's marketing mix included product planning, pricing,
branding, distribution channels, personal selling, advertising, promotionals,
packaging, display, servicing, physical handling, and fact-finding and analysis. E.
Jerome McCarthy later grouped these ingredients into the four categories that today
are known as the 4 P's of marketing, depicted below:

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PROMOTIONAL DECISIONS

In the context of the marketing mix, promotional represents the various aspects of
marketing communication, that is, the communication of information about the
product with the goal of generating a positive customer response. Marketing
communication decisions include:

 Promotional strategy (push, pull, etc.)

 Advertising
 Personal selling & sales force
 Sales promotional
 Public relations & publicity
 Marketing communications budget

Promotional Strategies and Practices:

PROMOTIONAL:

 Telling the customer about the product

 Promotional is typically sub-divided into
o Mass Selling
 Advertising - which you pay for
 Publicity - which is free
o Sales Promotional
 Stuff you do in the store to get the customer to try the product
 Contests, coupons, free samples
o Personal Selling
 Direct contact person2person with a potential customer
 Sometimes for large industrial sales

Sometimes for high quality consumer products, like selling a car

 Where and when can you get across your marketing messages to your target
market?

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  Will you reach your audience by advertising in the press, or on TV, or radio,
or on billboards? By using direct marketing mailshot? Through PR? On the
Internet?
 When is the best time to promote? Is there seasonality in the market? Are there
any wider environmental issues that suggest or dictate the timing of your
market launch, or the timing of subsequent promotional?
 How do your competitors do their promotional? And how does that influence
your choice of promotional activity?

PROMOTIONAL STRATEGIES

A successful product or service means nothing unless the benefit of such a service can
be communicated clearly to the target market. An organizations promotional strategy
can consist of several aspects as follows.

Advertising: Is any non-personal paid form of communication using any form of

mass media.

Public relations: Involves developing positive relationships with the organization

media public. The art of good public relations is not only to obtain favorable publicity
within the media, but it is also involves being able to handle successfully negative
attention.

Sales promotional: Commonly used to obtain an increase in sales short term. Could
involve using money off coupons or special offers.

Personal selling: Selling a product service one to one.

Direct Mail: Is the sending of publicity material to a named person within an

organization. There has been a massive growth in direct mail campaigns over the last
5 years. Spending on direct mail now amounts to £18 bn a year representing 11.8% of
advertising expenditure (Source: Royal Mail 2000). Organizations can pay
thousands of pounds for databases, which contain names and addresses of potential
customers. Direct mail allows an organization to use their resources more effectively
by allowing them to send named person within their target segment. By personalizing
advertising, response rates increase thus increasing the chance of improving sales.

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Listed below are links to organization who's business involves direct mail.

Message & Media Strategy

An effective communication campaign should comprise of a well thought out

message strategy. What message are you trying to put across to your target audience?
How will you deliver that message? Will it be through the appropriate use of
branding? Logos or slogan design?. The message should reinforce the benefit of the
product and should also help the company in developing the positioning strategy of
the product. Companies with effective message strategies include:

Nike: Just do it.

Toyota: The car in front is a Toyota.

Media strategy refers to how the organization is going to deliver their message. What
aspects of the promotional mix will the company use to deliver their message strategy.
Where will they promote? Clearly the company must take into account the readership
and general behavior of their target audience before they select their media strategy.
What newspapers do their target market read? What TV programmes do they watch?
Effective targeting of their media campaign could save the company on valuable
financial resources.

Push & Pull Strategies

There are three types of sales promotional strategies:

 A push strategy
 A pull strategy or
 A combination of the two

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A 'push' sales promotional strategy involves 'pushing' distributors and retailers to sell
your products and services to the consumer by offering various kinds of promotionals
and personal selling efforts. What happens here is that a company promotes their
product/services to a reseller who in turn promotes it to another reseller or to the
consumer. The basic objective of this strategy is to persuade retailers, wholesalers and
distributors to carry your brand, give it shelf space, promote it by advertising, and
ultimately 'push' it forward to the consumer. Typical push sales promotional strategies
include; buy-back guarantees, free trials, contests, discounts, and specialty advertising
items.

A 'pull' sales promotional strategy focuses more on the consumer instead of the
reseller or distributor. This strategy involves getting the consumer to 'pull' or purchase
the product/services directly from the company itself. This strategy targets its
marketing efforts directly on the consumers with the hope that it will stimulate
interest and demand for the product. This pull strategy is often used when distributors
are reluctant to carry or distribute a product. Typical pull sales promotional strategies
include; samples, coupons, cash refunds or rebates, loyalty programs and rewards,
contests, sweepstakes, games, and point-of-purchase displays.

A 'combination' sales promotional strategy is just that; it is a combination of a push

and a pull strategy. It focuses both on the distributor as well as the consumers,
targeting both parties directly. It offers consumer incentives side by side with dealer
discounts.

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Communication by the manufacturer is not only directed towards consumers to create
demand. A push strategy is where the manufacturer concentrates some of their
marketing effort on promoting their product to retailers to convince them to stock the
product. A combination of promotionalal mix strategies are used at this stage aimed at
the retailer including personal selling, and direct mail. The product is pushed onto the
retailer, hence the name. A pull strategy is based around the manufacturer promoting
their product amongst the target market to create demand. Consumers pull the product
through the distribution channel forcing the wholesaler and retailer to stock it, hence
the name pull strategy. Organizations tend to use both push and pull strategies to
create demand from retailers and consumers.

Communication Model

AIDA is a communication model, which can be used by firms to aid them in selling
their product or services. AIDA is an Acronym for Attention, Interest, Desire, Action..
When a product is launched the first goal is to grab attention. Think, how can an
organization use it skills to do this? Use well-known personalities to sell products?
Once you grab attention how can you hold Interest, through promoting features,
clearly stating the benefit the product has to offer? The third stage is desire, how can
you make the product desirable to the consumer? By demonstrating it? The final
stage is the purchase
action, if the company has been successful with its strategy then the target customer
should purchase the product.

Promotional through the Product life cycle

As products move through the four stages of the product lifecycle different
promotionalal strategies should be employed at these stages to ensure the healthy
success and life of the product .

Stages and promotional strategies employed.

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Introduction

When a product is new the organizations objective will be to inform the target
audience of its entry. Television, radio, magazine, coupons etc may be used to push
the product through the introduction stage of the lifecycle. Push and Pull Strategies
will be used at this crucial stage.

Growth

As the product becomes accepted by the target market the organization at this stage of
the lifecycle the organization works on the strategy of further increasing brand
awareness to encourage loyalty.

Maturity

At this stage with increased competition the organization take persuasive tactics to
encourage the consumers to purchase their product over their rivals. Any differential
advantage will be clearly communicated to the target audience to inform of their
benefit over their competitors.

Decline

As the product reaches the decline stage the organization will use the strategy of
reminding people of the product to slow the inevitable

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Internet Promotional

The development of the World Wide Web has changed the business environment
forever. Dot com fever has taken the industry and stock markets by storm. The e-
commerce revolution promises to deliver a more efficient way of conducting business.
Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a
week.

Owning a website is a now a crucial ingredient to the marketing mix strategy of an

organization. Consumers can now obtain instant information on products or services
to aid them in their crucial purchase decision. Sony Japan took pre-orders of their
popular Playstaion 2 console over the net, which topped a 1 million after a few
days, European football stars are now issuing press releases over the web with the
sites registered under their own names. Hit rates are phenomenal.

Advertisers have now moved their money over to the internet as customers are on
average spending more time online then watching TV. Popular ways to advertise
seem to be with banners and pop ups.

Everyone sees hundreds of commercial messages every day. Here are a few tips on
different avenues which may help your message cut through the promotionalal clutter
.
1. Media Releases.

There is a lot of media out there, and it's expanding all the time. It has be filled with
something, why shouldn't it be a story about you? If you can spin your sales story into
an interesting news story there's a good chance you will receive some coverage. But
that's the thing. It has to be interesting. Look for an angle and present it the right way
and there's every chance the local media will lap it up.
2. Event Invitations.

If you're staging an event, make it one people will talk about and look forward to.
Treat your clients like friends, not wallets. And here's a tip from a long established
catering company we do work for: when the pary starts to lag, roll out the French

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Champagne. Yes it can cost you, but there's something in that stuff which makes
people happy. Everyone will be happy to knock a couple of glasses back if they know
it's the real deal!
3. Networking.

If you attend networking functions, which are all the rage at the moment (we get
invited to about six a week!), when it's your turn to stand up and introduce yourself,
make sure you've got a gimmick on hand. It's a strange thing, that the larger the group
of people you have on hand, the simpler the jokes which work. Later on, when you're
working the room you'll have something to chat about and even if nobody remembers
what you were trying to promote, they will remember you.

4. Response to Inquiries.

When you get a good lead through whatever channel, send back your response in an
interesting and unforgettable way. Put your proposal in an empty pizza box and bribe
a kid from Dominos to deliver it. Send one of those mobile coffee vans around and
shout the team at the other company a coffee each. Have your quote written on the
icing of a cake and hand delivered. Sounds stupid? Maybe, but when you talk to your
prospective client next you have the beginnings of a relationship and may have turned
a simple inquiry response into something resulting in everyone with the other group
knowing who you are.
5. Sales Pitches.

Intrigue your prospective clients. A local sales legend in Brisbane used to ring for an
appointment and announce, "I'm coming 'round now and I'm bringing morning tea".
He would arrive with two cream buns in a paper bag. He always claimed that if he
could get the person he was visiting to eat their cream bun he would get them as a
new client. Nobody ever forgot the sight of this bloke appearing at the door with two
buns in a brown paper bag.
6. Sales Letters.

There's nothing more boring than a sales letter which just babbles on about how great
you are. What would anyone expect you to say? It's a constant battle to stop people
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demanding promotionalal sales letters that are heavy on product features and details.
Here's a promotionalal idea we're about to try. Go to the back and buy a wad of some
virtually worthless currency; Zimbabwe Pounds, Turkmanistan Roubles, New
Zealand Dollars (only joking guys) whatever you can lay your hands on, but make
sure the demoninations are big. Dream up a spin to your letter which is related to
cash/money/income. Attach one of the banknotes to the letters you send it out. Who,
other than the government, is going to throw away money? And if you buy the right
dud currency it costs about the same per sheet as printing a letter.

7. Follow-up Letters.

Once you've spoken with a client and had your first meeting, make sure you follow up
by mail, if only to cover off the subjects you discussed. People don't want to deal with
slackers, sending a letter after your meeting looks professional and sets the stage for
further contact.
8. Surveys.

Companies wishing respondents to fill out a questionnaire are more likely to get
results when they attach a bribe. Just by adding a pen to the package you can expect a
30 percent better response.
9. Talk to Fresh Promotionals

As one of Australia's most innovative sales promtion and marketing groups, we are
always interested in hearing new ideas or dreaming up new ones which will work for
your business. If you have a promotionalal idea for your business, or want one, give
us a call. We specialize in getting your ideas happening on budget and on time.

7. Talk to us!!

PromoSales consultants are happy to have a chat about what you need from you
promotional. We are always interested in hearing from you and want to see your
promotional succeed.

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SALES PROMOTIONAL STRATEGY

Sales are the lifeblood of a business, without sales there would be no business in the
first place; therefore it is very important that if a business wants to succeed, it should
have a sales promotional strategy in mind. The primary objective of a sales
promotional is to improve a company's sales by predicting and modifying your target
customer's purchasing behavior and patterns. Sales promotional is very important as it
not only helps to boost sales but it also helps a business to draw new customers while
at the same time retaining older ones. There are a variety of sales promotionalal
strategies that a business can use to increase their sales, however it is important that
we first understand what a sales promotional strategy actually is and why it is so
important.

A sales promotional strategy is an activity that is designed to help boost the sales of a
product or service. This can be done through an advertising campaign, public relation
activities, a free sampling campaign, a free gift campaign, a trading stamps campaign,
through demonstrations and exhibitions, through prize giving competitions, through
temporary price cuts, and through door-to-door sales, telemarketing, personal sales
letters, and emails. The importance of a sales promotional strategy cannot be
underestimated. This is because a sales promotional strategy is important to a business
boosting its sales.

When developing a sales promotional strategy for your business, it is important that
you keep the following points in mind.

 Consumer attitudes and buying patterns

 Your brand strategy
 Your competitive strategy
 Your advertising strategy
 And other external factors that can influence your products availability and
pricing.

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METHODS OF PROMOTIONAL

Some of the most common methods used in sales promotional strategies include:

 Coupons
 Price discounting
 Gift with purchase offers
 Sweepstakes
 Sampling
 Mail in offers and rebates
 Refund and premium offers
 Group promotional
 Frequent user/loyalty incentives
 Point-of-sale displays
 Sponsorships for special events (like fun runs)
 Participation in community projects and boards of directors
 Trade Shows - Your product or service might be one that is suited to
exhibiting at a trade show attended by your target audience. Trade shows are
typically one- or two- day events that allow businesses to set up exhibits or
booths showcasing their products or capabilities.
 Fairs (like Health Fairs, Job Fairs)
 Give-aways (like baseball caps and mugs with your logo)
 Coupons and free samples
 Conducting contests
 Public Speaking and Conferences
 Newsletters
 Trade journals
 Media Relations Campaigns
 Representation by experts
 Public service announcements
 Press kits

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PROMOTIONALAL OBJECTIVES

To promote your business successfully, you have to understand who you need to
reach and what you are trying to achieve.

Promotional strategies should focus first and foremost on your existing customers.
Make sure they are aware of the full range of your products and services and create
opportunities to generate repeat and higher value purchases. You should also be
getting your existing customers to spread the word about your business - perhaps by
trying out new products and services and offering rewards for introducing new
customers.

When focusing your promotional activities on potential customers, aim to create

brand awareness and credibility. Ensure they understand your offer and how you
differ from your competitors. Once you really get into detail, you might even find
yourself promoting individual products differently to different groups of customers.

COCA-COLA INDIA CEO REVEALS AGGRESSIVE PROMOTIONAL

STRATEGIES

Atul Singh, CEO and president of Coca-Cola India, reveals his strategies for
aggressively promoting the brand across the country. Singh says the company is
training shop owners to promote the brand in order to encourage more Indians to
drink Coca-Cola Co. products.

Distribution of Consumer Market:

Five channels are widely used in marketing tangible products to
ultimate consumers:
Producer consumer: The shortest, simplest distribution channel for
consumer goods involves no middlemen. The producer may sell from door to door of
by mail. For instance, south-western company uses college students to market its
books on a house-to-house basis.

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Producer retailer consumer: Many large retailers buy directly from
manufactures and agricultural products. To the chagrin of various wholesaling
middlemen. Wal-Mart has increased its direct dealings with products.

Producer wholesaler retailer consumer: If there is a

traditional channel for consumer goods, this is it, small retailers and manufactures buy
the thousands find this channel the only economically feasible choice.

Producer agent retailer consumer: Instead of using

wholesalers, many producers prefer to use agent middlemen to reach the retail market,
especially large scale retailers. For example. Clorox uses agent middlemen such as
Eisenhart & wholesaler that distribute a wide range of products to retailers. In turn,
Dierberg’s offers its assortment of products to final consumers.

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 PRODUCER PRODUCER PRODUCER

WHOLESALER

RETAILER RETAILER

CONSUMER CONSUMER CONSUMER

Distribution of Business Goods:

A variety of channels are available to reach organizations that in corporate the
products into their manufacturing process of use them in their operations. In the
distribution of business goods, the terms industrial distributor and merchant
wholesaler are synonymous. The four common channels for business goods:

Producer user: This direct channel accounts for a greater dollar volume of
business products than any other distribution structure. Manufactured of large
installations, such as airplanes, generators, and heating plants, usually sell directly to
users.

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Producer industrial distributor user: producers of
operating supplies and small accessory equipment frequently use industrial
distributors to reach their markets. Manufactures of building materials and air
conditioning equipment are two examples of firms that make heavy use of industrial
distributors.

Producer agent user: Firm without their own sales departments’ fid
this desirable channel. Also, a company that wants to introduce a new market may
prefer to use agents rather than its own sales force.

Producer agent industrial distributor’s user:

This not feasible to sell through agents directly to the business user. The unit sale may
be too small for direct selling. Of decentralized inventory may be needed to supply
rapidly, in which case the storage services of an industrial distributor are required.

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 PRODUCER PRODUCER PRODUCER
BUSINESS
MARKETING
CHANNEL

MANUFACTUR’S
REPRASENTATIVES
OR SALES BRANCH

BUSINESS
DISTRBUTOR BUSINESS
DISRIBUTOR

BUSINESS BUSINESS BUSINESS

CONSUMER CONSUMER CONSUMER

Indian Distribution System:

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It is also important to assess how the distribution task is being performed in India.
This task can be undertaken by measuring the number of functionaries in each class,
their organizational structure and their capital structure. The margins charged by them
would be a function of the quantum if goods moved and the population served by
them and services rendered by them and would also assist in the task if measuring
their performance. Dividing the members involved in each type of trade we can
briefly get an idea about the average productive capital required in each class of trade.
Having assessed the inputs, structure and size their distribution all over India we are
now in la position to assess how the task is being performed in terms of output.

Distribution logistics:
Logistics was a military term referring to complete system of moving, supplying and
quartering troops. Businessmen broadened logistics to include any type of
transportation and storage. Marketers applied the term to mean the physical handing
of products. They also began employing the term ‘physical distribution’ in place of
logistics. The area of physical distribution has received considerable attention. The
attention was quite justified for a country such as ours because of its traditional short
supply markets of for the gaps often witnessed between the demand and available of
products. Prices of essential commodities of daily consumptions are particularly
amenable to any dislocation in physical distribution. If any evidence is required, we
need the concerns and anxieties associated with news of strike in Rail and road
transport.

Role of Distribution:
The major role that distribution pays in any economy is that it constitutes the process
by which goods and services become available for consumption. Manufacturers of
goods and services specialize in generating structural of form utility for their
products, in the sense that they create a unique set of demand satisfiers in the form of
their offering. The actual mass scale delivery of these offerings to the consuming
public requires a different kind of specialized effort. This generates time, place and
possession utility. In other words, you cannot obtain and consume a finalized product
unless the product is transported to a place where you can get access to it; stored till

19
you are ready to buy it and ultimately exchange for money so that you can gain
possession of it.

Physical Distribution and Channels of Distribution:

If distribution could be treated as a whole function of marketing, physical distribution
and channels of distribution. It is found that these two terms are used, sometimes,
interchangeably. Channels of distribution refer, primarily, to the middlemen of
intermediary marketing instructions which perform certain marketing functions. More
than performing the function, these institutions try to gain access to the target market.
Physical distribution, on the other hand, concerns with material aspects of the flow of
goods to the consumers. It includes transportation, storage, warehousing, packaging,
etc. it is technical function in the sense that it ensures availability of products at the
right time, at the right place and in the right form. The term is used often in aboard
sense to include channels of distribution also.

Service to the manufacturers:

The wholesaler provides perpetual and definite customers to the manufacturers. He
either purchases large quantities from the manufacturer and sells them to the retailers,
of collects small orders from a number of retailers and places a bulk order with the
manufacturer. The manufacturer is thus relived of the trouble and expense of
collecting a large number of small orders. He collects and provides the information
required for planning the production ahead. He maintains stock and thus assures
equitable distribution. He places bulk orders with the manufacturer and thus enables
him to concentrate on production and reap the benefits of large-scale operations. He
shoulders all marketing functions.

Transportation:
Transportation is necessary function of marketing because most of the markets are
geographically separated from the areas of production. Majority of manufacturing
plants are far away from their most important markets because of various factors. All
goods are not utilized at the place of their origin. They require some kind of
transportation to create ‘place’ utility. Holtz Claw vividly puts the importance of
transportation in the following liens: “Minerals of other raw materials are to be

20
transported from the place of extraction of production to the factory; crops are to be
carried from the farm to the local market or primary market and from there to the
places of consumption. Finished products are to be transported from the warehouse to
the wholesalers’ warehouses, from warehouse to the retail dealer, and from the dealer
to the ultimate consumer. The various modes of transport fall under the three
categories:

Road transport

Rail transport

Water transport

Air transport

Pipeline transport

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 CHAPTER –III
COMPANY ROFILE

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INTRODUCTION FOR COCA COLA COMPANY

You may know The Coca-Cola Company.

... as the largest beverage company with the most extensive distribution system
in the world. You may know us simply as Coca-Cola--the world's most valuable
brand and a global icon.

The Coca-Cola Company is the world’s leading manufacturer, marketer, and

distributor of nonalcoholic beverage concentrates and syrups. Its world headquarters
is based in Atlanta, Georgia. The company and its subsidiaries employ nearly 31,000
people around the world. The Coca-Cola Company manufactures syrups, concentrates
and beverage bases for Coca-Cola, the company’s flagship brand, and also produces
over 230 other soft-drink brands sold by and its subsidiaries in nearly 200 countries
around the world. Some of Coca-Cola’s latest domestic marketing strategies include
Coke dominating fountain sales. Thousands of consumers visit fast-food restaurants
every day and Coke feels that it is very important to have the consumer see and drink
their product at such chains as McDonalds, Burger King, and Domino’s Pizza. Coca-
Cola is also testing a new plastic cup in the famous Coca-Cola.

Let us introduce you to The Coca-Cola Company you may not know.

The Coca-Cola system's customers are the grocers, retailers, street vendors and store
owners who sell our products to our consumers. We have millions of these partners in
the more than 200 countries where we operate.

The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton.
Today, the company is the world's leading manufacturer in the beverage industry,
operating globally in more than 200 countries with its head office located in Atlanta,
USA. It produces more than 300 beverage brands and over 1.06 billion drinks are
consumed per day around the world.

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Mission Statement

The Coca-Cola Company's mission statement is:

'Remind Coca-Cola is the read thing' but their motto now has changed to 'To benefit
and refresh everyone who is touched by our business.'

Also Coca-Cola would hope to provide the best quality drink for everyone, all the
employees working for them being at their top and fullest.

Approximately 50 billion times a day, someone drinks a beverage. Our beverages are
enjoyed more than 1.3 billion of those times. That means there are over 48 billion
beverage choices to capture.

We built on our formidable assets: our brands, financial strength, unrivaled

distribution system and our people. And we have made progress toward sustainable
growth.

We sharpened our focus on what the world wants to drink and why, and we
continued our efforts with local leaders to support communities around the world.

We have a lot of good news to share, and we're just getting started.

The Coca-Cola Company manufactures, distributes, and markets nonalcoholic

beverage concentrates and syrups worldwide. It principally offers sparkling and still
beverages. The company’s sparkling beverages include nonalcoholic ready-to-drink
beverages with carbonation, such as energy drinks, and carbonated waters and
flavored waters.

Its still beverages consist of nonalcoholic beverages without carbonation, including

non-carbonated waters, flavored waters and enhanced waters, juices and juice drinks,
teas, coffees, and sports drinks. The Coca-Cola Company also offers fountain syrups,
syrups, and concentrates, such as flavoring ingredients and sweeteners.

The company markets its nonalcoholic beverages under the Coca-Cola, Diet
Coke, Fanta, and Sprite brand names. The Coca-Cola Company also owns mineral
water brands Kildevaeld and Kurvand in Denmark and soft drink brand Hyvaa Paivaa

24
in Finland. It sells its finished beverage products primarily to distributors, and
beverage concentrates and syrups to bottling and canning operators, distributors,
fountain wholesalers, and fountain retailers. The company was founded in 1886 and is
headquartered in Atlanta, Georgia.

The Coca-Cola Company's products include beverage concentrates and syrups, with
the main product being finished beverages.

The business has over 300 brands of beverages around the world with the main ones
being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde.

The Coca-Cola Company packages its beverages into plastic bottles of sizes 2
liters, 1.25 liters, 600mL and 300mL. These are also available in aluminium cans of
375mL.

Coca-Cola is the most well known trademark, recognized by 94 per cent of the
world's population. The business is very successful and holds a very good reputation.

The Coca-Cola Company uses marketing strategies to differentiate its product from its
competitors to gain a competitive advantage. These are listed in the table below.

The Coca-Cola Company.

In 1886, we introduced Coca-Cola to Atlanta, Georgia. One product, a simple

moment of refreshment. In 120 years, a lot has changed. We now have more than 400
brands in over 200 countries.

The real story of The Coca-Cola Company lies in what we're doing today to build a
sustainable-growth business for tomorrow.

What does sustainable growth look like to us? In 2005, we mapped a long-term plan
for our business, Our Manifesto for Growth. It includes working closely with our
bottling partners in the following key areas:

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

25
Portfolio: We bring to the world beverage brands that anticipate and satisfy people's
desires and needs.

Profit: We strive to provide maximum return to our shareowners while being mindful
of our overall responsibilities.

Partners: We actively nurture a winning network of partners and build mutual loyalty.

Planet: We act as a responsible global citizen who makes a difference.

Sustainable growth means meeting our short-term commitments while investing to

meet our long-term goals. We are beginning to see results.

On the pages that follow, we'll discuss how our plan is changing the way we think and
the way we operate, and you'll see evidence of the progress we're

The Coca-Cola Company brands include:

 Barq's
 Coca-Cola
 Coke Zero
 Dasani water
 Diet Coke
 Glacéau
 Fanta
 Fresca
 Full Throttle
 Fuze
 Hi-C
 Kinley
 Lift
 Lilt
 Mello Yello
 Minute Maid
 Monster Energy distributed by Coca-Cola, made by Hansen Natural
 Oasis

26
  Odwalla
 Powerade
 Pibb
 Relentless
 Sprite
 Tab
 Thums Up
 Urge
 Vault

1886 - Drink

Slogans from the 1900's

 1904 - Delicious and Refreshing

 1905 - Wherever you go ... you will find

 1905 - Revives and Sustains

 1906 - The drink of quality. The Great National Temperance

 1907 - is full of vim, vigor and go

 1908 - Get the genuine

 1909 - Whenever you see an arrow, think of

 1911 - Enjoy a glass of liquid laughter
 1917 - Three Million A Day

Slogans from the 1920's

 1920 - Drink with soda, The

hit that saves the day
 1922 - Thirst knows no season
 1923 - Refresh yourself, There's nothing like it when you're thirsty

27
  1924 - Pause and refresh yourself

 1925 - Six Million A Day

 1926 - Stop at the red sign
 1927 - Around the corner from anywhere, at the little red sign
 1928 - A pure drink of natural flavors
 1929 - The pause that refreshes

Slogans from the 1930's

 1930 - Meet me at the soda fountain

 1932 - The drink that makes the pause
refreshing
 1933 - Don't wear a tired, thirsty face

 1934 - When it's hard to get started, start with a

 1935 - All trails lead to ice-cold

 1936 - Get the feel of wholesome refreshment
 1937 - Stop for a pause...go refreshed
 1938 - Anytime is the right time to pause and refresh, Pure as sunlight
 1939 - Thirst stops here. Makes travel more pleasant.

Slogans from the 1940's

 1940 - The package that gets a welcome at home

 1941 - A stop that belongs on your daily timetable

 1942 - The only thing like is itself

 1943 - A taste all its own
 1944 - High sign of friendship


 1945 - Coke means

 1947 - Relax with the pause that refreshes

 1948 - Where there's there's Hospitality

28
  1949 -Along the highway to anywhere

Slogans from the 1950's

 1950 - Help yourself to refreshment

 1951 - Good food and just naturally go together

 1952 - Coke follows thirst everywhere
 1953 - Dependable as sunrise
 1954 - For people on the go
 1955 - Americas preferred taste
 1956 - Feel the difference, Makes good things taste better
 1957 - Sign of good taste
 1958 - Refreshment the whole world prefers
 1959 - Make it a real meal

Slogans from the 1960's

 1960 - Relax with a Coke, Revive with a Coke

 1961 - Coke and food
 1962 - Enjoy that refreshing new feeling
 1963 - Things go better with Coke
 1964 - You'll go better refreshed
 1965 - Something more than a soft drink
 1966 - Coke...after Coke...after Coke

Coca-Cola Jingles
These Jingles are taken from '60s radio air checks.

29
Slogans From the 1970's

 1970 - It's the real thing

 1971 - I'd like to buy the world a Coke
 1972 - Coke . . . goes with the good times

 1975 - Look up America, see what we've got

 1976 - Coke adds life

Slogans From the 1980's

 1980 - Have a Coke and a smile

 1982 - Coke is it

 1985 - We've got a taste for you. America's real choice Classic!
 1986 - Catch the Wave. Red, white and you!
 1988 - Can't beat the feeling
 1989 - Official Soft Drink of Summer

Slogans From the 1990's

30
Ads of company

31
HISTORY OF COCA COLA

A pharmacist named Dr. John Stith Pemberton invented the refreshing

taste of Coca-Cola in 1886. Concocted by a mixture of caramel-colored syrup in a
three-legged brass kettle while in his backyard. He then decided to try to “market” the
drink at Jacobs’ Pharmacy in his hometown of Atlanta, Georgia. For five-cents,
customers were able to enjoy a glass from the soda fountain. An average of nine
drinks were sold a day. In 1891 Dr. John Stith Pemberton sold Coca-Cola for 2,300 to
an entrepreneur named Asa G. Candler. Within the next four years Coca-Cola was
distributed throughout the whole nation. 1893 the Cola-cola trademark and script were
patented. The “two C’s were though to look well for advertising”. In 1899 large-scale
bottling becomes possible when Asa Candler grants Joseph B. Whitehead and
Benjamin F. Thomas exclusive rights for one dollar. But in 1919 Coca-Cola was sold
for $25million to a banker in Atlanta name Ernest Woodruff and a group of investors.
That same year, Coca-Cola sold its first share of stock for forty dollars a share.
Assuming all dividends were reinvested, those original shares would have been worth
approximately $6.7 million at the end of the year.

Coca-Cola (Coke), the world’s largest carbonated soft drink (CSD)

manufacturer had built its brand over the years through consistent and effective
advertising campaigns making history over the years. In the recent times the company
had suffered serious setbacks with a number of controversial and negative allegations
leveled against it. Coke was increasingly being associated with health hazards and
was under threat in many of its key markets. Consumption of CSD, which was its core
business, had decreased and sales fell in Western Europe, Philippines and India.
Active anti-Coke movements had triggered severe criticism from many segments of
society including students, environmentalists,

Labor-rights activists, employees and shareholders. In 2004,

Neville Isdell, Coke Chairman and CEO devised a plan to revive Coke. Called the
‘Manifesto for Growth’, the plan included several strategic initiatives including
innovation, increasing marketing investment and introducing new products in the non
Carbonated Soft Drink market.

32
As part of the plan to revive the Coke brand, ‘The Coke side of life’, a new global
marketing platform was launched in December 2005. The company believed that this
global campaign would return the company to its former glory. Marketing experts
were however skeptical about this. They wondered if the new marketing campaign
would help offset the myriad charges that beset Coke and help to revive the brand.

The case enables students to appreciate the advertising campaigns that helped build
the Coca-Cola Company into a strong brand. It also enables discussion on the new
campaign launched by Coke and its effectiveness in overcoming its problems.

One great earmark that the Coca-Cola Company has is helping the people of
Atlanta. They accomplish this through scholarships, hotlines, donations and
contributions. Another large accomplishment that the Coca-Cola has, is being the
first company to make and use recycled plastic bottles. One way to see all of the
achievements of the Coca-Cola company is to visit the World of Coke in Atlanta. It
houses a collection of memorabilia, samples of the products, exhibits, and many other
exciting items. All of what has been said is the basis of what Coca-Cola was built on.
Without societies help, Coca-Cola could not have become over a 50 billion dollar
business. Keep on consuming the world's favorite soft drink, Coca-Cola.

Until the 1960s, both small town and 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 of all ages. Often combined
with lunch counters, the soda fountain declined in popularity as commercial ice
cream, bottled soft drinks, and fast food restaurants came to the fore.

 The term "soda water" was first coined in 1798.

 In 1810, the first U.S. patent was issued for the manufacture of imitation
mineral waters.
 The first soda fountain patent was granted to Samuel Fahnestock in 1819.
 In 1858, G.D. Dows invented and operated the first marble soda fountain,
which he patented in 1863.
 In 1883, James W. Tufts patented a soda fountain, which he called the Arctic.
Tufts went on to become a huge soda fountain manufacturer.

33
  On January 25, 1870, Gustavus Dows patented a modern form of the soda
fountain.
 In October of 1874, Robert M. Green created the first ice cream soda.
 In 1903, a revolution in soda fountain design took place with the front service
fountain patented by Dr. Heisinger.

More fun facts and trivia

 Coca-Cola can be used to bake a ham. Pour one can into the baking pan,
rap the ham in aluminum foil, and bake. Thirty minutes before the ham has
finished cooking, remove the foil, allowing the drippings to mix with the
Coca-Cola to make a delicious brown gravy.
 Mexico and Iceland have the highest per capita consumption of Coca-Cola.
 Coca-Cola translated to Chinese means, "To make mouth happy".
 Every second over 7,000 Coca-Cola products are consumed.
 The tallest Coca-Cola bottling plants are in Hong Kong. The plant in Quarry
Bay is 17 floors, and the plant in Shatin is 25 floors.
 The bottling plant at the highest elevation in the world is located in Bolivia, at
12,000 feet.
 The world's longest Coca-Cola truck is in Sweden. It is 79 feet long with a
four-azle trailer.
 The best selling non-carbonated soft drink in Japan is a product of The Coca-
Cola Company named "Georgia", a coffee flavored beverage.
 Coca-Cola first crossed the Atlantic on board the Graf Zeppelin, the German
dirigible.
 The Varsity Restaurant in Atlanta, Georgia, has earned the distinction of
serving the highest volume of Coca-Cola anywhere. It dispenses nearly 3
million servings of Coca-Cola annually.
 If the Coca-Cola company constructed a sign like the ones McDonald's uses
to count their millions of customers, by 1983 it would have read "over 1
trillion served."
 If all the Coca-Cola ...

34
 o ever produced were in 6 1/2 oz. bottles and placed end to end
they would wrap around the earth more than 11,863 times.
o sold in 1994 were in 8-ounce bottles laid end-to-end, those
bottles would reach to the moon and back 76 times.
o vending machines in the U.S. were stacked one on top of each
other, the pile would be over 450 miles high.
o ever produced were to erupt from "Old Faithful" at its normal
rate of 14,000 gallons per hour, the geyser would flow
continually for 1,577 years.
o Products sold in 1994 were flowing over Niagara Falls at its
normal rate of 1.5 billion gallons per second, the falls would
flow for three hours.

Ingredients of Coke

 Carbonated Water
 High Fructose Corn Syrup
 Caramel Color
 Phosphoric Acid
 Natural Flavors
 Caffeine

Description:
This company profile offers a comprehensive analysis of the
organization, its business segments, and competitors. It analyzes the business and
marketing strategies adopted by the company, toga in a competitive edge in the
industry. The profile also evaluates the strengths of the company
and the opportunities present in the market.
This profile is of immense help to management consultants, analysts, market research
Organizations and corporate advisors.

The objective and scope of various sections of our company profile has been
discussed below.
Company Summary

35
This section presents the key facts & figures, business description, products &
services offered and Corporate timeline of the company.
Company Analysis
It involves analysis of the company at three levels - segments, organizational structure
and ownership composition. Both business and geographic segments are analyzed
along with their recent financial performance. It further discusses the major
subsidiaries of the company and the recent merger & acquisitions.

Business Developments
This section examines the significant developments that have taken place in the
company. It is form of news analysis where the most critical company news is
discussed.
Discussion of Business Strategies
This section talks about the current and future strategies of the company. All business,
marketing, financial and organizational strategies are discussed here.
SWOT Our SWOT Analysis is a valuable step in assessing your company’s strengths,
weaknesses, opportunities, and threats. It offers powerful insight into the critical
issues affecting a business.
Financial Performance
It discusses the most recent financials of the company and also compares the
historical sales & income figures with the current and projected figures. The objective
is to evaluate the financial health of the company. The analyst opinion and stock
performance help us in evaluating the performance of the company from an investor’s
viewpoint.
Competition Synopsis
This section compares the company with its peer group. The comparable analysis and
stock movement are aimed at giving an overview of the competitive landscape in the
industry and the company’s positioning in its peer group.

ANALYSIS SOFT DRINK

1 Analysis of the U.S. soft drink industry, based on the competitive forces model of
Michael Porter.

36
In the soft drink industry the entry of new competitors depends on the barriers to entry
that are present, and also the reaction from existing competitors that the entrant can
expect.

I will now analyze the six major sources of barriers to entry the soft drink industry.

Economies of scale deter entry by forcing the entrant to come in at large scale and risk
strong reaction from existing firms or come in at a small scale and accept a cost
disadvantage. If a company wants to decline its unit costs of their product, they will
have to produce more to lower the cost. The more you produce, the lower the costs.

In the soft drink industry establishing firms have brand identification and customer
loyalties. The brand name can have differences. This is a high barrier to enter.
Entrants are forced to spend a lot to overcome existing customer loyalties.

Definition of soft drinks

Nonalcoholic beverage
A soft drink is a beverage that does not contain alcohol ; generally it is also implied
that the drink does not contain milk or other dairy
Family of alcohol free, carbonated , drinks that are aromatized with fruit extracts. cola
, tonic, etc
REVENUE
The Coca-Cola Company North America offices in Sugar Land, Texas, United
StatesAccording to the 2005 Annual Report, the company sells beverage products in
more than 200 countries. The report further states that of the more than 50 billion
beverage servings of all types consumed worldwide every day, beverages bearing the
trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion.
Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for
approximately 78% of the Company's total gallon sales.

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as
follows:

 37% in the United States

 43% in Mexico, Brazil, Japan and the People's Republic of China

37
  20% spread throughout the rest of the world

In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion
in annual UK grocery sales.

INDUSTRY PROFILE

The company's international blitz began in 1926 when company President Robert
Woodruff signed Coca-Cola as a sponsor of the 1928 Olympic Summer Games in
Amsterdam. The U.S. Olympic Team and 1,000 cases of Coca-Cola arrived at the
games by freighter. Since then, the relationship between the Olympic Games and
Coca-Cola has only grown!

Many Coca-Cola divisions around the world sponsor individual athletes or teams as
well.

 1928 was also the first year the Olympic flame was lit, and women were
invited to compete.

 1952 -- The Summer Games in Helsinki - Coca-Cola shipped 300,000 cases of

bottles and donated it for sale by the Disabled Ex-servicemen's Association.

 1952 -- The Winter Games in Oslo - The local Coca-Cola bottler chartered a
helicopter for advertising. In 1952 most people had never seen anything like a
helicopter and they were utterly fascinated. At the close of the games, the
helicopter was given to the city to help direct traffic.

 1960 -- The Summer Games in Rome - Italian bottlers welcomed athletes,

officials and spectators to Rome with a 45 rpm record of "Arrivederci Roma."

 1964 -- The Summer Games in Tokyo - This marked the first year Coca-Cola
aided the athletes, spectators and media with guide maps, sightseeing
information and a phrase book. The idea was so popular, it was adapted for
use in Mexico City, Sapporo (Japan) and Munich.

 1979 -- The Coca-Cola company worked with the Olympic Committee to

create the U.S. Olympic Hall of fame.

38
  1988 -- The Winter Games in Calgary - Coca-Cola orchestrated a world
children's chorus. Also, Coca-Cola opened the venue for what would later be
deemed the games number-one spectator sport -- The Coca-Cola Official
Olympic Pin Trading Center.

 1996 -- The Summer Games in Atlanta - The Games' centennial, as sole

sponsor of the Olympic Torch Relay, Coca-Cola brought the flame to more
than 350 cities and towns during the 94-day run.
You may know someone who got to run with the flame! I was fortunate enough
to watch the flame's progress through Clark County, Indiana into Louisville,
Kentucky. I even got my picture taken with one of the runners, as I held the
torch!! AND I was there as the flame entered our nation's capital,
Washington, D.C. through Fairfax County, Virginia!

Olympic Commemorative Cans

1928 1948 1964 1992 1996

Amsterdam London Tokyo Barcelona Atlanta

MODERN TRADE

Modern Trade is the process of doing business by utilizing and implementing latest
trends in the business with the help of technology to reach the target customer.

Now a day’s each and every one in the market is implementing these practices and
having successful business.

Modern format retail is witnessing phenomenal growth, driven by the impact of

increasing urbanization, the new well-traveled, knowledgeable Indian consumer and a

39
youth-driven culture. In its official estimate for the current fiscal ending in March, the
government said that the economy, Asia's fourth largest, was expected to grow at 9.2
per cent.

All these factors are rapidly changing the needs and aspirations of consumers.
Schedules are also getting tighter, with the time for professional commitments and
regular chores getting limited. Hence, the "convenience" factor has a major influence
on purchase decisions.

Modern trade, the characteristic of which is having everything under one roof and
with a great array of products displayed in an uncluttered fashion where the touch and
feel factor prevails, is providing an environment to access products driven by
convenience and fashion.

EVOLUTION OF MODERN TRADE

When we discuss modern trade, the terms large-scale; modern-format and

organized are used rather synonymously in India. However, the three terms
need not necessarily mean the same thing. Large-scale refers to the scale of
operation of retail business - which in turn implicitly refers to a chain of stores.
Modern-format basically refers to self-service. However, many of the self-
service stores which call themselves ‘Supermarkets’, are in the range of 500
sq.ft. or less in size and are nothing more than independent mom-and-pop
stores. And organized retail typically means large-scale chain stores which are
corporatized, apply modern-management techniques and are very likely to be
self-service in nature. Most of the estimates of organized retail market size
refer to only large-scale retail. For us modern-retail in this paper means self-
service in both large-scale as well as small-scale. Contrary to the popular view
where-in all credit for growth of modern retail goes to the consumer and their
increasing purchasing power, it is found that consumers manufacturers and
retailers – all three – have been impacting the evolution process.

40
MODERN TRADE IN INDIA

India once again topped the world in the ACNielsen Consumer Confidence Index for
the third time in a row since the index was established in early 2005, with the highest
score of 181 in the last leg of the survey, conducted in November 2009.

Strong economic growth has brought with it new sets of Indian consumers. The
booming young adult population with unprecedented levels of disposable income is
more conscious of the latest trends and fashion. Enhanced media penetration and
greater connectivity also are making consumers more knowledgeable and discerning.

Modern trade is an old saga in India with about 7.8 million retail stores, but most of
those are traditional ones, which only recently started making way for hypermarkets,
supermarkets and specialty stores. Modern trade in India is witnessing tremendous
growth, especially in Tier I cities

It accounts for 4 per cent of urban FMCG sales but for the top 15 metros it is about
10.7 per cent of the total FMCG sales. For South Indian metros it touches about 19
per cent, because modern trade started there a little earlier. There are more than 3,840
modern trade stores in India now.

IMPACT OF MODERN TRADE ON FMCG

Looking at the kind of consumer patronage a modern trade format store has in terms
of an urban population growing rich, there are a few segments in the FMCG range of
products that have experienced good growth from the modern trade format. In the
food segment, processed food products (23 per cent), impulse food products (32 per
cent) and packaged grocery (38 per cent) are the segments that have witnessed
immense growth from urban Indian modern stores.

Similarly, in the home and personal care segments it is household cleaning products
(38.1 per cent), fabric care (23 per cent) and categories related to grooming, viz. hair
care (28.3 per cent), fragrances (26 per cent) and skin/body care (23 per cent) that
have recorded considerable growth from urban modern format stores.

41
An increasing number of working women and nuclear families are some reasons
behind the growth in the food categories. Packaged grocery is a very convenient
product for people who are busy and hence we see it doing so well. Again the young
adult population of India is ambitious and hard working, and has the money to spend
on lifestyle. They are brand-conscious and aware of what their counterparts in the
West are wearing and buying

No wonder products related to grooming like like skin care, hair care, and fragrances,
or, for that matter, products like household cleaners are witnessing growth. These
consumers represent the target for manufacturers and retailers, who want to capture a
share of the booming consumer markets in India. Manufacturers, on their part, are
investing aggressively to capture the minds of today's and tomorrow's generations.

With more modern format stores setting up shop in the country we are also witnessing
an expansion in these segments in terms of availability of innovative packaging sizes,
product innovation and overall ranges.

Modern trade and food as a category: Food accounts for about 48 per cent of FMCG
sales in the country and for modern trade the number is even higher, at 51.3 per cent.
Like other Asia-Pacific markets, in India too, among the processed food segments, the
breakfast cereals category is exhibiting a stupendous 40 per cent growth rate. Other
growing categories are biscuits (26 per cent), vermicelli & noodles (28 per cent),
beverages (24 per cent) and ketchup and sauce (29 per cent).

Indians have an old fascination for home-cooked food, especially when it comes to
lunch and dinner. With the changed lifestyle, the trend is changing and people have
started showing interest in ready-to-cook foods. However, even today a majority of
these consumers are willing to restrict the experiment to packaged foods and
accompaniments meant for breakfast and snack time.

Chocolates (28 per cent) and namkeens (37 per cent) are two major categories of
impulse food products showing good growth, along with packaged rice (92 per cent)
in the packaged grocery segment.

42
Modern trade and home and personal care products (H&PC): As far as H&PC is
concerned, from modern trade it has witnessed a growth rate of about 23 per cent,
which is at par with the overall growth. Modern trade brings with it a great shopping
experience, with good product displays, making selection far easier.

Under household cleaners it is floor cleaners (88 per cent) and toilet cleaners (37 per
cent) that are growing well; in hair care, it is hair conditioners (43 per cent) and hair
oil (35 per cent), and for the skin care segment, it is skin creams (35 per cent) that are
driving the H&PC sales in modern stores.

With the overall economy doing well and basic necessities mostly taken care of,
people are now more keen to look and feel good and are ready to devote time and
money on that. Unlike in the past, when there was one product used for all household
cleaning, people now are willing to experiment with specific products meant for
cleaning glasses, utensils, floors, etc.

THE emergence of modern trade (or organized retail) is currently the biggest
challenge facing FMCG manufacturers, who could see increasing pressure on sales
margins as a result.

Citing as an example the situation in the US where retailer Wal-Mart is much bigger
than any of the FMCG companies, he said such a scale would give modern trade the
power to negotiate. "Today, I give 13 per cent (margin). Modern trade won't settle for
anything less than 20 per cent," he said, addressing students of the ICFAI Business
School as part of a BL Club lecture.

43
 CHAPTER –IV

DATA ANALYSIS

AND INTERPRETATION

44
DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS:

Modern trade

Valid Cumulative
Frequency Percent Percent Percent

Valid Organised Sector 8 53.3 53.3 53.3

Organised
3 20.0 20.0 73.3
Outlets

Organised Trade 4 26.7 26.7 100.0

Total 15 100.0 100.0

MODERN TRADE

0
Organised Organised Organised
Sector Outlets Trade
Series1 8 3 4

Interpretation
In a sample size of 15 respondents:
a) 53.3% of them answered Modern trade as Organized sector

b) 20.0% of them answered Modern trade as a Organized outlets

c) 26.7% of them answered Modern trade as Organized business

45
Characteristics of MT

Cumulative
Frequency Percent Valid Percent Percent

Valid Ambience 4 26.7 26.7 26.7

Variety 5 33.3 33.3 60.0

benefit 6 40.0 40.0 100.0

Total 15 100.0 100.0

CHARACTERSTICS OF MODERN TRADE

27%
Ambience
40%
Variety
benefit

33%

Interpretation
In a sample size of 15 respondents
a) 40% of them opined that “benefit” as the main characteristic feature of
the Modern retail

b) 33% of them opined that variety as the characteristic feature of Modern

retail

c) 27% of then opined that ambience as the characteristic feature of

Modern retail

As 40% of the respondents feel that benefit as the important factor in Modern
trade so, we can conclude that margin plays a major role in “Modern trade”

46
Planogram

Valid Cumulative
Frequency Percent Percent Percent

Valid Comuputer generated

5 33.3 33.3 33.3
plan

well designed plan 10 66.7 66.7 100.0

Total 15 100.0 100.0

PLANOGRAM

33%
Comuputer generated
plan
well designed plan

67%

Interpretation
In a sample size of 15 respondents
a) 67% of the respondents opined “Plano gram” as a Computer generated
plan

b) 33% of them opined Plano gram as well designed, manually generated

plan

Even there are computer generated plans, retailers are opting for manual plans
this is because of the Organised retail still occupying only * % of the market
share.

47
Significance of plano gram

Valid Cumulative
Frequency Percent Percent Percent

Valid stock availability 7 46.7 46.7 46.7

identificaition of
6 40.0 40.0 86.7
products

Both 2 13.3 13.3 100.0

Total 15 100.0 100.0

SIGNIFICANCE OF PLANOGRAM
Both
13%

stock
availability
47%
identificaition
of products
40%

Interpretation
In a sample size of 15 respondents:
a) 47% of the respondents are of the opinion that, stock availability as the
significance of a Plano gram

b) 40% of them are of the opinion that, when products are arranged
according to a planogram that will be useful for the easy identification
of products

c) 13% of the respondents were of the opinion that, when products are
arranged according to a particular planogram that will be useful for that
easy identification and stock availability of precuts can be known

Retailers are using Planogram for checking availability of the stock, but they
are not using the soft ware for shelf life management and other functions.

48
Category Importance

Valid Cumulative
Frequency Percent Percent Percent

Valid Arrangement and

9 60.0 60.0 60.0
availability

Sales 2 13.3 13.3 73.3

Identification of
4 26.7 26.7 100.0
products

Total 15 100.0 100.0

CATEGORY IMPORTANCE

Identification
of products
27%
Arrangement
and availability
sales 60%
13%

Interpretation
In a sample size of 15 respondents
1) 60% of them responded that category is important for arrangement and
availability of product

2) 27% of them responded that category is important for the Identification

of products

3) 13% of them responded that category is useful for the sales.

49
Imp locations for Beverages

Valid Cumulative
Frequency Percent Percent Percent

Valid Chiller & End Cap 5 33.3 33.3 33.3

Chiller & Cash points 6 40.0 40.0 73.3

chiller&Multiple
4 26.7 26.7 100.0
categories

Total 15 100.0 100.0

IMPORTANT LOCATIONS FOR BEVERAGES

chiller&Multipl
e categories Chiller &
27% End Cap
33%

Chiller & Cash

points
40%

Interpretation
In a sample size of 15 respondents
1) 40% of them opined that chiller and Cash points as the important
locations where the beverages can be placed

2) 33% of them opined that chiller and End cap as the important locations
where the beverages can be placed

3) 27% of them opined that chiller and Multi categories the important
locations where the beverages can be placed Most of the Retailers are
placing Coke products in Chillers and near cash pOINTS as it they are
the attractive points for beverages

50
What is Merchandising

Valid Cumulative
Frequency Percent Percent Percent

Valid Maintainance of stock 12 80.0 80.0 80.0

Display of stocks for

3 20.0 20.0 100.0
visibility

Total 15 100.0 100.0

WHAT IS MERCHANDISING

Display of
stocks for
visibility
20%

Maintainanc
e of stock
80%

Interpretation

In a sample size of 15 respondents

1) 80% of them opined Merchandising as Maintenance of stock

2) 20% of them opined that Merchandising as Display of stocks for

visibility

Many of the retailers still perceive that merchandising is maintaining

the stock but only 20% of them are aware of visual merchandising
which plays an important role in retailing today.

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How Merchandise Influences sales

Valid Cumulative
Frequency Percent Percent Percent

Valid stock availabilty can be

8 53.3 53.3 53.3
know

Increases sales 2 13.3 13.3 66.7

Both 5 33.3 33.3 100.0

Total 15 100.0 100.0

Valid
Valid stock availabilty can be know stock
availabilt
Valid stock y can be
availabilty can know, 1,
be know, 4, 8, 5%
53.3, 32% Valid stock
1 availabilty can
2 be know, 2,
53.3, 31%
3
4 Valid stock
availabilty can
be know, 3,
53.3, 32%

Interpretation
In a sample size of 15 respondents
1) 54% of them responded that Merchandising influences sales by
knowing stock availability

2) 13% of them responded that through Merchandising is helpful in

increasing the sales

3) 33% of them responded through Merchandising stock availability can

be known as well it would increase sales.

52
Average Basket value

Valid Cumulative
Frequency Percent Percent Percent

Valid 100-200 12 80.0 80.0 80.0

201-300 1 6.7 6.7 86.7

401-500 2 13.3 13.3 100.0

Total 15 100.0 100.0

AVERAGE BASKET VALUE

401-
500
201-300 13%
7%

100-200
80%

Interpretation
In a sample size of 15 respondents
1) In 80 % of the stores Average basket value of the store was between Rs.
100 to 200

2) In 13 % of the stores average basket value of the store is in between Rs.

401 to 500

3) In 7% of the stores Average basket value of the store is in between

Rs.201 to 300

53
Coke Share at the Store

Valid Cumulative
Frequency Percent Percent Percent

Valid 5-10% 5 33.3 33.3 33.3

11-15% 9 60.0 60.0 93.3

16-20% 1 6.7 6.7 100.0

Total 15 100.0 100.0

16-20% COKE SHARE AT THE STORE

7%

5-10%
33%

11-15%
60%

Interpretation
In a sample size of 15 stores
1) Coke share at beverage category in 60% of the stores is in between 11-
15%

2) Coke share at the beverage category in 33% of the stores is in between

5-10%

3) Coke share at the beverage category is 7% of the stores is in between

16-20

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CUSTOMER ACCEPTANCE:-

Valid Cumulative
Frequency Percent Percent Percent

Valid Satisfactory 5 33.3 33.3 33.3

good 8 53.3 53.3 86.7

Excellent 2 13.3 13.3 100.0

Total 15 100.0 100.0

CUSTOMER ACCEPTANCE OF COKE

Excellent
13%

Satisfactory
34%

good
53%

Interpretation
In a sample size of 15 respondents
1) 53% of them responded that Customer acceptance of Coke product as
Good

2) 34% of them responded that Customer acceptance of Coke product as

Satisfactory

3) 13% of them responded that Customer acceptance of Coke product as

Excellent

Customer acceptance towards the Coke Products is good and next level is
satisfactory in some of the stores

55
CHAPTER –V
FINDINGS

56
 FINDINGS

 The present promos on coke are double Masti , Buy 2one liter bottles for
RS75, RS25 off on McDonald’s FOOD FOR 1.7Liter bottle, Get Mc Donald’s
burger free by buying any two 500ml coke products and 50%discount on
INOX movie tickets by buying any two mobiles.

 The average sales of the outlets are 10lacs to 20lacs in10% of the outlets and
20lacs to 30lacs in 30% of the outlets and 30lacs to above in 60% of the
outlets.

 “Distribution & Promotionalal strategies of Cola Cola company” with respect

to coke products in Hyderabad”

57
 SUMMARY OF FINDINGS

GENERAL FINDINGS:

 The research of this project covered only Food World outlets on the overall
sample size.

 At all the stores visited for research there is coke chiller.

 For coke the competitor brands in Large PET and mobiles are Pepsi, slice, 7UP
and 7UP LIME. In juices the competitor brands are Slice, Apply, and Tropicana.
In Water the competitor brands are Bisleri as well as Himalayans. In tetra the
competitor brand is fruity.

 There are 5types of shopping for coke-Impulse cold thirst, planned shopping, and
Basket penetration. Impulse buys, and New Buys. These types will vary
accordingly with respect to the situation the buyer is facing.

 Out of all the outlets 38%of the outlets have the average basket value of 100 to150
and 44%%of the outlets have the average basket value of 150 to 200 and 18% of
the outlets 200 above.

58
 SUGGESTIONS AND RECOMMENDATIONS

 Many of the customers are attracted towards the coke products if the promo
offer is for movie tickets. Hence this should be taken into account and more
promo offers should be given on this category.

 Huge expiry of the stock is seen in some stores. In some Food World stores
the managers are complaining that some times there is huge stock of coke
products as such it would be resulting in expiry of the products. Hence like
should find some alternatives for this kind of problem to satisfy the stores
managers.

 Corporate social responsibility should be done by coke and also should gain
good will from the customers by involving in few societal activities.

 In some stores coke is only placing the chillers. In spite of offering less share
coke should also ensure that the decoration of the outlet is done by coke itself
even then the outlet is not paying to afford it only because of monetary factor.

 Coke should be given proper propaganda in all the aspects and the relation
ships between the customers always exist.

 Coke should adopt few modern techniques in order to retain the customers and
also should adopt new techniques to gain new customers or enhance the sales.

 Coke should also enhance the combo offers in food courts so that the sales
volume will increase in the brand.

59
 CONCLUSION:

Till date coke is performing well in the market. As it is a well known fact that
always there is a room for improvement, the organization should focus on few aspects
such as concentrating on promo activities as well as organization campaigns. From
the in-depth analysis on the data collected from the study, the basics of the modern
trade such as meaning, scope, merchandising advantages of modern trade and its
participants, meaning of Plano gram were found with an interaction with store
managers. Various brand competitors were also evaluated on marketing mix analysis
and necessary suggestion were quoted. Even though few store managers were not
readily willing to share confidential information regarding the sales figures, from the
data obtained from other managers who willingly shared we arrived to conclusions.
Few promotionalal activities of coke and its competitor are studied and feedback is
given in order to make necessary corrections. Various kind of information such as
availability of the coke chillers and type of shopping and type of shopper’s were
found out with various kinds of examples. Many of the times they were also
practically seen.

The duration of the Training sessions should increase based on the periodic
review as well as periodic follow-ups. The ROI –The return on investment made
towards training and development activity need to be measured with performance
benchmarks. More experienced and senior executive should be involved in training
sessions and for sharing information regarding modern trading and to explain the store
managers suggestions have been made for improving the modern trade in this soft
drinks company . If these could be implemented then the retailer’s contribution
towards the performance will be high which helps in the overall development of the
coke organization.

60
 BIBLIOGRAPHY

References:

 Philip Kotler, “PRINCIPLES OF MARKETING MANAGEMENT,”2003,

Sultan chand & company Ltd, New Delhi.

 Rama swamy ( MAXMILLAN PUBLISHER INDIA LTD) 2004

 Rajan saxsena (MARKETING MANAGEMENT ) 2003

 Tata Mcgraw Hill (PUBLISHING COMPANY LIMITED)

Websites Referred:

 www.google.com
 www.cocacola.com
 www.wikipedia.org
 www.indiainfoline.com
 www.altavista.com
Books and journals : Business world
4ps marketing
Economic times (brand equity).
Business line.

61
 QUESTIONNAIRE

Section – I
1) Number of customer services assistants available at the store?
a) 1-3
b) 3-6
c) 6-above
2) How many gondolas available in your store?
a) 1-3
b) 3-6
c) 6-above

3) What is the average sales figure at your store every month?

a) 10lacs to 20lacs
b) 20lacs to30lacs
c) 30lacs-above

4) Is coke chiller available at your store?

a) Yes
b) No

5) Is coke product at right place in category?

a) On top shelf
b) Start from right side
c) if, no the current place

6) How is the customers’ acceptance towards coke products?

a) Strongly disagree
b) Disagree
c) Neither agrees nor disagrees
d) Agree
e) Strongly agree

62
7) What is the coke share in beverage category at store?
a) 1% to 12%
b) 12% to 22%
c) 22%to above

8) What is the average basket value at the store?

a) 100 to150
b) 150 to 200
c) 200 to above
9) What can you do to enhance the relationship with the customers?
a) Good communication
b) Good services
c) Good relationship

10) Define the types of shopping and types of shoppers?

a) Lower class
b) Middle class
c) Higher class
d) all

11) What is the total number of cash till available at the store ?
a) 1-3
b) 3-6
c) 6-above
12) What is the store size?
a) 500-1000
b) 1000-1500
c) 1500-above
13) Oh yes, I think I will buy coke as well?
a) Impulse cold
b) planned shopping
c) Basket penetration
d) Impulse buys
e) New buys
63