Beruflich Dokumente
Kultur Dokumente
(IN KANPUR)
OF
FOR
-: UNDER GUIDANCE OF :-
MR. MANISH PUNDEER
MOHD. FAISAL
SUBMITTED BY:
SHYAMAL MISHRA
M.B.A. III SEMESTER
2009-2011
1
ACKNOWLEDGEMENT
I would also give special thanks to all the owner of the out lets for giving
me the precious time to discuss all their problems. I would also like to give
my sincere thanks to all the staff and the members of Hindustan Coca-
Cola Beverages Private Limited.
(Manish Pundir)
SHYAMAL MISHRA
(A.C.D.M.) M.B.A. III SEMESTER
2009-2011
2
CERTIFICATE-
This is to certify that Mr. Nitin Mishra has satisfactorily completed the project
work entitled "Consumer Buying Behavior Regarding houseware products" at
Hamilton Houseware private Limited, under the guidance based on the declaration
made by the candidate and my association as guide for carrying out this work, I
recommend this project report for evaluation as a partial requirement of the MBA
Program of lovely professional university, Punjab.
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MEANING OF PROJECT
The word “Project” has great specification in the field of management before
starting any work we must have an idea about its basic. The meaning of the
“PROJECT” is as follows: -
“P” – The word ‘p’ signify the phenomenon of planning, which deals
symbolization and proper arrangement of sensex and suggestion on
respectively in accordance with need.
“R” – It stand for associated with word resource with which guides to promote
planning.
“J” – This letter stands for joint efforts i.e. Project work which is undertaking
should be completed with a combined effort.
“T” – This stands for the techniques unless techniques to work is not Known.
4
CHAPTER TITLE PAGE NO.
VII CONCLUSION 79
VIII FINDINGS 80
IX SUGGESTIONS 81
X QUESTIONNAIRE 82
XI REFERENCES 83
5
INTRODUCTION
Abraham Ninan
Director External Affairs,
Coca-Cola, India
FOUNDED : 1926
INDUSTRY : BEVERAGES
6
7
HISTORY OF COCA-COLA
In January 1893 Coca-Cola was registered with the U.S. patent office.
Later on in 1915 the Root glass company created the famous contour glass
bottle for Coca-Cola in 1915.
Sadly, in the first year of Coke’s existence, Pemberton and his partner
only made $50. Pemberton sold two third of his business in 1888 to cover his
losses and keep the business afloat.
8
EARLY GROWTH
9
company, passing it on to his children and moving into polities. He was
elected mayor of Atlanta in 1916.
In 1919 the Candler family sold Coca-Cola to businessman Ernest
Woodruff of Columbus, Georgia, for $25 million. Woodruff son, Robert, was
elected company president in 1923. Robert Woodruff was a skilled marketer,
and he put more of the company’s resources into market research than
manufacturing Coke.
WARTIME DEVELOPMENT
POSTWAR GROWTH
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Woodruff departure, the company began to diversify by producing new
products, acquiring new business, and entering new international markets.
In 1960 the Coca-Cola Company purchased the Minute Maid Corp.
producer of fruit juices and began offering Coke in cans. Between 1960 and
1963 it also launched four new soft drink in the United States: Fanta, an
orange soda; Sprite, a lemon-lime soda; Diet Cola; Diet grapefruit-flavored
soda. In 1964 the company acquired the Duncan foods crop. In 1967, it created
the Coca-Cola foods division by merging its Duncan and Minute Maid
operations.
In the late 1960s, Coca-Cola faced difficulties in some of its foreign
markets. When the company built a bottling plant in Israel at the outset of the
Arab-Israel War, the governments of all Arab League nations banned the
production and sale of Coke. A year later the company withdrew from its
markets in India when that country’s government requested that Coca-Cola
reduces its equity in joint ventures to 40 percent. The company refused to
relinquish so much control over those operations.
In 1977 Coca-Cola began packaging Coke and other drinks in two-liter
plastic bottles. The popularity of these large bottles grew over time, and their
sales earned the company new project, primarily in small specialty and
convenience stores.
In 1982 the company introduced Diet Coke, which soon becomes the
best-selling diet soft drink in the world.
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RECENT DEVELOPMENTS
12
13
SOFT DRINK INDUSTRY IN INDIA
14
Coca-Cola South Asia Holding Incorporation of the
U.S. files an application to manufacture soft drinks concentrate in Noida
(Delhi) free trade zone.
1990
Pepsi Cola and 7 Up launched in limited market in
North Indian.
15
Voltas pulls out of the Pepsi Food Limited joint
venture. Pepsi decides to buyout the Voltas share and raises its equity to 92%
Report of Coke Parle joint gain strength.
16
17
COCA-COLA IN INDIA
At this time Parle was the leader in soft drink market and had more
than 60% of the total market share in soft drink Coca-Cola joined hand with
Parle and strategic alliance with Parle export give the company instant
ownership of the nation top soft drinks brands Thums-Up, Limca, Citra, Gold
Spot and Maaza access to Parle’s extensive 62 plant bottling network and a
base for the rapid introduction of the company’s international brand by
striking a $40 million deal with Parle Coke almost a clear sweep and made it
goal as “To become an all occasion drink not a special treat beverage”.
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Create consumer products, services and communications customer’s
service and bottling system strategy processes and tools in order to create
competitive advantage and deliver superior value to:
Consum
ers as a superior beverage experience.
Consum
ers as an opportunity to grow profits through the use of
finished drinks.
Bottlers
as an opportunity to make reasonable to grow profits
and volume.
TCCC
as trademark enhancement and positive economic value
added.
Supplier
s as an opportunity to make reasonable profits when
creating real value added in an environment of system
wide teamwork, flexible business system and
continuous improvement.
CCI
associates as superior career opportunity.
Indian
society in the form of a contribution to economic and
social development.
There are nine brands of coca-cola in India and they are differ in taste,
flavor and also in their colours.
1. COKE
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Coke is considered to be a cola drink. It is generally preferred by all
sections of consumer. This is a case cow brand for the company in terms of
sales revenue.
2. THUMS-UP
3. LIMCA
4. FANTA
5. MAAZA
6. KINLEY SODA
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7. SPRITE
8. KINLEY WATER
9. MINUTE MAID
In Minute maid pupply orange cold drink no gas only based on orange
juice. It is a non-aerated soft drink and market competitor of Tropicana
Twister.
21
22
SWOT ANALYSIS
STRENGTHS
WEAKNESS
2. Unskilled labour.
OPPORTUNITIES
1. Wide market.
2. Good rural market.
3. Direct distribution.
THREATS
1. Stiff competition.
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CONSUMER CHOICE AT A GLANCE
Thums-Up Youngster.
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25
INGREDIENT DELIVERY
Sweetener
Secret Formula
Created in special concentrate plants, it's delivered, held and used under strict
controls to maintain its integrity and security. Each unit of concentrate is
especially identifiable to allow the "history" of each component to be
researched at any stage of production, storage or use.
CO2 Formula
when delivered to the plant, carbon dioxide, or CO2, comes in cylinders for
easy delivery and storage. But what is it? In essence, it's a colorless and
odorless gas that provides the "fizz" for our beverages. But it's also a by-
product of our breathing and used by plants and trees to produce oxygen.
Water
since water is a key component to all our beverages, its quality is critical. And,
since public water quality varies around the world, each plant further treats the
water it uses. This means that before water is added to any of our beverages;
26
it's rigorously filtered and cleansed. We then continuously sample the water to
ensure it meet our standards.
Materials
Ingredients are not the only things delivered to the plant. Other materials such
as bottles, cans, labels and packaging are also delivered. Our plants in India
use refillable bottles, CANS, PET etc. in the Production Process, when bottles
and cans are delivered to the plant; they are carefully inspected to ensure that
they meet our exacting standards. Once these have passed initial inspection.
To ensure quality, each bottle is washed, sanitized and rinsed before being
filled. While this sounds simple, the actual steps can differ by bottling plant. In
India, our plants use refillable glass, cans or PET bottles. To ensure they meet
our cleanliness standard, bottles are first hit with prerinse jets which remove
any dirt or debris. They are then soaked in a high-temperature deep cleaning
solution that removes any remaining dirt and sanitizes them. The bottles then
move to the "hydrowash" where they are washed again with a deep cleaning
pressure-spray. They move on to be washed and/or rinsed.
Mixing and blending begin with the steps of mixing pure water with refined
sugar, which creates simple syrup. The syrup is then measured for the correct
amount of sugar.
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Secret Formula
Our secret formula is... still secret! That's right; the secret formula remains a
mystery to the millions of people in nearly 200 countries that enjoys our
refreshing beverages everyday. Even though we can't tell you the secret, you
can be sure that "LIFE TASTES GOOD" with Coca-Cola.
With the syrup nearing its final state, we mix it with pure water, creating the
finished uncarbonated beverage. However, the water and syrup must be mixed
in right ratio. This is done by the beverage proportioning equipment. It
accurately measures the correct ratio for each and sends this mixture to the
carbonator.
CO2 Adding
Adding CO2 or carbon dioxide gas is the final touch that carbonates the
beverages. Carbon dioxide not only gives our beverages their effervescent
zest, but it also adds to the distinctive and familiar taste everyone has come to
expect from our beverages.
FILLING
Once all the ingredients have been mixed and blended and the bottles have
been cleaned and sanitized, we're ready to start filling. This is a surprisingly
complex process requiring precision at each step. To begin with, bottles must
be carefully timed as they move to the filler - synchronization is key. Once at
the filler, bottles are either held securely in place by flexible grippers or
precisely placed under filling valves by centering devices. Before the bottles
can be filled, the inside of the bottles must be pressurized. This allows for the
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force of gravity itself to draw the beverage into the bottle - a process that
ensures the smooth flow of liquid, with little to no foaming.
CAPPING
Once filled, bottles are then capped. We use different caps for different bottles
- glass bottles are usually topped with a metal crown while "PET BOTTLES"
are topped with a plastic screw-top. Each cap type then moves through
different parts of the machine, which ensures each cap stays scratch free and is
in the right position to be precisely placed on the bottle. As quality and
freshness are key, we use a "no closure" detector during the capping process
and a "go-no-go gauge" or "torque meter" after the bottles has been capped.
The "no-closure"
detector checks if a screw top or crowns has been placed on bottle. The
process actually stops if the detector doesn't find a closure. The "go-no-go
gauge" checks for the proper crown crimp and the "torque meter" checks to
make sure the screw-top is good and tight. If the bottle cap isn't just right, the
beverages can become flat or be affected in other ways. If this happens, the
bottle is discarded.
LABELING
Once the bottles have been filled and capped, they move on to be labeled. A
special machine dispenses labels from large rollers, cuts them and place on the
bottles. For special labels such as commemorative bottles for football
championships, the labels are sent to the bottling plants for approval, and then
used for packaging. Depending on the occasion, some of these special bottles
will go only to the specific locations. For example, a national football
championship bottle will be sent only to the hometown or state of the
championship team.
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CODING
The bottle is now ready to be coded. Each one of our beverages is marked with
a special code that identifies specific information about it. The codes simply
identify the date the beverages was bottled or canned. These codes identify the
date, time, batch no. And the MRP. Product coding allows us to ensure that u
receive our beverages at their flavorful best
INSPECTION
We inspect bottles at many points during the process. With refillable bottles, it
happens they are first brought into the plant. They are also inspected after they
are washed and again after they are filled. Inspectors look for external bottle
imperfections and make sure each bottle has the right amount of beverages.
Even after filling, each plant samples bottles for analysis in its lab to ensure
quality is up to standards.
PACKAGING
Once our filled beverages have passed final inspection, they are ready to be
packaged for delivery. Generally, packing can refer to everything from the
unique "BOTTLE" and "CAN" designs, to label designs, to cardboard boxes
and containers, to plastic rings. Because the needs and tastes of our consumers
are so diverse, the packaging varies depending on where the beverages are
being sent.
In order to make sure the freshest beverages possible get to you, each
warehouse must efficiently manage the thousands of beverages cases produced
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each day. Beverage organization is key, though it's the bottle and can coding
that allow for the necessary precision. From the warehouse, we load beverages
onto our distinctive trucks. Night and day, our trucks are delivering our
refreshing beverages to stores, soda fountains, and vending machines near
you.
Pesticide use
31
The Coca-Cola Company has responded that its plants filter water to
remove potential contaminants and that its products are tested for pesticides
and must meet minimum health standards before they are distributed.
Water use
32
releasing wastewater into surrounding land. A Coke official confirms there
had been a drainage problem with treated wastewater several years ago but
says the company built a long pipeline to correct it.
Indian environmental activists Vandana Shiva has stated that it takes
nine litres of clean water to manufacture a litre of Coke though Coca-Cola
says it is only an average of 3.12 litres.
Packaging
33
DIFFERENT PLAYERS IN THE SOFT DRINKS MARKET
PEPSI
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available in 187 Nations throughout the world in 18 flavors having its Head
Office in New York, United State. Pepsi has 13 bottlers with 26 plants in
India. Through this compared with 60 plants of Coke is quite less, yet the
market share of Pepsi has increased quite significantly.
PEPSI IN INDIA
This $3040 billon, New York (U.S.) based Pepsi Company, had to start
from scratch after entering the country in 1989. Deep blue Pepsi, is a broad
based food and beverage company, deriving more than 60% of it’s sales and
operating profits from it’s snack foods and restaurant business.
CADBURY SCHWEPPES
35
bottling operation on Zambia and Zimbabwe. Cadbury Schweppes has fottlery
and partnership operations in 14 countries around the world.
May 1995 one more soft drink Cadbury Schweppes entered the Indian
soft drink market and now the competition in this industry is more due to rise
in the number of competition and also due to large product range that they all
are offering to the market. Cadbury Schweppes, just about two year old in
India udebtufues with the guerilla. Number three in the aerated soft drink
market after Pepsi and Coca-Cola Company; it is resorting to some very smart
footwork to gain its share of silence.
Early on, Coke had a distinct cocaine kick, even through corporate,
Coke has long dispute. This piece of America folk care, saying the coke leaf,
36
was they with the syrup and training needed to produce distributes and sell the
product and above all the most valuable assent, the trademark.
In 1917, Candler gave almost all of his coke, stock to his children, who
sold out two years later to a syndicate headed by, Atlanta Banker Ernest
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Woodruff, for $25 million. Woodruff eventually took over and ruled the
company to its present glory. Woodruff died in 1985.
COKE IN INDIA
With one stroke of the pen, and a bill of 140 crore coca-cola picked by
five brands- Thums Up, Limca, Gold Spot, Citra and Maaza with a combined
market share of 69 percent with Thums Up alone accounting for 56% of the
then 650 crore cola segment.
Coca-Cola world’s largest selling soft drink and which sells nearly half
the soft drink of world market its reentry with planned strategy.
MODUS OPERANDI
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Thus leaving a bottler with a margin of 9%, again 4% of this would go
into warheads and interest charges, trimming down the margin to a simply 4-5
% a bottling operation, thus is viable only large volume.
The consumer, obviously, shoulders most of the burden, bottle cost are
also critical component of soft drink business.
Coke has made India its home; coke is experimenting with mobile
dispensing units at beaches and stadiums, going out towards consumers. “Our
goal is to have available within arm’s reach of desire”. Nicholas once said
(Retd. C.E.O).
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THE COMPETITIVE AREA AMONG COKE AND PEPSI
The soft drink market all over the world as been witnessing a neck-to-
neck battle between the two major players; Coca-Cola and Pepsi since very
beginning. The thirst quenchers are trying hard to have the major piece of the
apple of overall carbonated soft drink market. Both the players are spending
their energies in building capacity, infrastructure, promotional activities etc.
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Coca-Cola, being 11 years older than Pepsi, has been dominating the
scene in most of the soft drink market of the world and enjoying the leadership
terms of the market share. But the coca-cola people are finding it hard to deep
away Pepsi, which has been narrowing the gaps regularly; the two are posing
threats for each other in every nook and corner of the world. While coca-cola
has been earning most of the part of its bread and butler through beverages
sales, Pepsi has a multi products portfolio with a handsome portion from the
same business.
The two warriors are face to face once again here in India with
different strategies and policies to attack at rival Coca-Cola is focusing upon
the joint ventures with the existing bottlers to enhance its control on
manufacturing and marketing of its product range and attain the quality
standards of its class. Countering its Pepsi has taken the baton in its own hands
by floating and investment of $95 millions to set 6 Pepsin Co. India Holdings,
a subsidiary for company’s owned bottling operation (COBO).
Both of the companies are following different path of reach the same
destiny i.e. to fetch the bigger portion of aerated soft drink market in India
Both the competitors have distinct vision and priorities about the
Indian soft drink market. Through having so much difference and distances
with each other, they both consider India as a huge potential market as per
capita consumption here in more 3 servings per year against an international of
80. Throughout, they are putting their best efforts to woe Indian consumer
who has to work for 1.5 hours to by a bottle cross over for both the athletes
running for getting No.1 position.
Coca-Cola is well set with its 53 bottling sites throughout the country
giving it an edge over competition by possessing a well built manufacturing
and distribution set up on the other side of picture, Pepsi, with two more year
in India, has been able to set an image of winner this giants are ready to turn
every stone of opportunity with a mindset of long tenure this time.
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Coca-Cola has been penetrating the market through its wide product
range with a determination to change competition pattern of soft drink in
India. Firstly, they upgraded the whole industry by introducing 300 ml bottles,
which in turn, had given the industry a booming growth of 20 % as compared
to earlier 5%. They want to develop a coca culture here and are working on a
strategy to offer soft drink in every possible package. In coca-cola camp, the
idea of competition has not come from Pepsi, but from the other beverages
such as tea, coffee, nibu pani, water etc.
Coca-Cola on the other hand, has been working on the saying ‘skew’
and stead with ‘race’, side by side retailing to the every move of its
competitor. They have produced the shield of Thums Up with a handsome
market share in India soft drink market. Countering Pepsi; international
commercial that used two chimpanzees to coke a snack at coke, Thums Up
came with the aid line, “Don’t be Bandar, taste the thunder” Also Thums Up
has been positioned now very near to that of young in age of Pepsi and giving
it tuff time.
Everything has been put on fire by these cool merchants. If Coke got
the status of the “Official drink of Wills World Cup”, Pepsi blushed as
“Nothing official about it”. As Thums Up projected as ‘Saare Jahan Se
Achchha’. Pepsi was passionate enough with ‘Freedom to be’. When Thums
Up came up with ‘Thunder Blast’, the other one offered, Pepsi ‘Stuff Card’. If
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red color is meant for Coke, Pepsi has chosen to be Blue. In this way, Indian
consumer is getting more fizz and punch from the two big brothers and he has
to given not about the winner.
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MARKETING DEPARTMENT
Marketing is getting right goods and services at right time and right
place to right people at right price with right communication.
Right from the first year of the incorporation the company is running
in top profit. This is because of many reasons. One of them is being that there
is no other bottling plant nearby. Also the company gives good margins to the
retailer’s along with various lucrative from time to time.
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46
SALES PROMOTION TECHNIQUES OF COMPANY
1. Good
Advertising.
2. Effectiv
e Incentive Policy.
3. Quality.
4. Wide &
Deep Distribution System.
5. Attracti
ve packaging.
6. Allottin
g SGA’S (Refrigerator, Chest cooler, Table Umbrella,
Chairs etc.) to retailers.
7. Decorat
ing Retailers shop by display board, dealer’s board etc.
With
every 1-2 crates purchased daily or alternatively an
icebox is provided.
For an
average consumption of 5-6 crates a visi-cooler of
4crates.
For a
purchase of 7-8 crates daily visicooler 7 crates.
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If
purchase exceeds 8 crates, then 9 crates visicooler or
deep fridger is provided.
Radio.
T.V.
Hoardings.
Road signs.
Sticker.
Neon light.
Banners.
Newspaper.
Magazines.
Exhibition.
Posters.
Sponsoring local events.
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SOME OTHER TECHNIQUES FOR PROMOTION OF
COCA-COLA COMPANY
1928
1948
1964
49
1992
1996
50
51
ADVERTISING
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a. Support personal selling advertising may be used to
acquaint prospect with seller’s company and product, easing the way for the
sales force.
b. Improve dealer relations: wholesalers and retailer like to
see a manufacturer support its product.
c. Introduction new product: consumer needs to be
informed even about line extensions that make used of familiar brand name.
The product like Thums Up, Fanta, Limca and Maaza belong to one
group i.e. coca-cola, advertise on nation side basis for its products, by hireling
every year they are spending Rs.10/- per crate for the advertisement. They are
spending the amount for wall painting, dealer’s board, glow signs, hoardings,
product since its first newspaper ad. In 1886 that red, coca-cola delicious
implementing a strategy over one hundred year old to trigger desire as offer
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1.Lisa Ray (famous model) in a very interesting add, which featuring
him bathing with sprite. Having a catching line “Sprite bujhaye only
pyass baki all bakwaas”.
2.Amir Khan & Ashwarya Rai (both cine stars), which targeted
younger generation. This add. Contained imagery of rugged and
romantic for 330 ml of coke. Theme “ Coca-Cola Ho Jay”.
7.Diet Coke the exiting add. on the pool with fall swing calling “Taste
The Power Of One Calorie”.
8.Amir Khan in the as on Mini Coke very interesting and Roman tic
add.
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55
OBJECTIVES OF THE STUDY
The R.E.D. survey was done to find out the present status of Thums
To find the receptivity of the brand among the retailers and consumers
cola, fanta, limca, and maaza- the major competitor in this category.
competitor’s penetration.
To collect data about the retailers that can be used for activating new
To find out ways to increase the sales of the new launches in different
channels.
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Review of Literature :
Having seen a `modest profit' for the first time since it set foot in India,
multinational Coca Cola has trained its eyes on beefing up the per capita consumption
of soft drink in the country even as it is readying for a horizontal expansion into rural
areas.
Disclosing this in an exclusive interview with The Hindu here today, Patrick T.
Siewert , Group President (East and South Asia), said, "We will continue to focus on
profitability because we have invested nearly a billion dollar in India since our entry".
It had not repatriated any money back thus far. Asserting that "we need to see a return
on those large investments," Mr. Siewert, nonetheless, said, "we are taking a long
term view of that".
While declining to divulge the `modest profit figure' of its Indian operation in 2002,
he admitted that at least one-third of the profit was contributed by the decision of the
parent to write off the accumulated loss of over Rs. 2,000 crores. "Nearly two-thirds
of the profit are brought about by operational improvements that are driven by right
cost, execution and strategy," he claimed.
Fielding a range of questions, Mr. Siewert said the strategy of providing affordable
quality soft drinks had worked for Coco Cola. The focus of the company would be on
"building per capita consumption by making the soft drink an everyday affordable
item for the millions of people in India," he said.
The President saw a huge opportunity in rural areas. He said "the horizontal
expansion is still available to us" even though "we often talked about rural
expansion".
57
Mr. Siewert asserted that the soft drink business, notwithstanding the negative
perception in the minds of some, had been driving the growth in the domestic market.
In this context, he pointed out that Coca Cola had been buying $300 million worth
raw materials from within the country. It had been the largest buyer of sugar in Tamil
Nadu and had been keeping the glass and crate industries ticking. It had also been
picking up close to 8 per cent of refrigerator capacity in the country. He reckoned that
every one direct job in the Coca Cola system had resulted in 30-40 odd related jobs
elsewhere.
Precisely because of the multiplier effect that the soft drink industry was capable of
generating, he wanted the States to set out the right investment climate. Mr. Siewert,
in fact, had a meeting with the Tamil Nadu Chief Minister this afternoon. So far, Coca
Cola had invested $10 million in India this year. About 45 per of it had flowed into
the South, he pointed out.
Mr. Siewert asserted that India and China were on top of Coca Cola's priority in its
global game plan. While the Chinese market was larger than India, the former was not
growing as fast as the latter.
Going forward, the company was proposing to open 1.50 lakh new outlets this year
and a similar number next year as part of its horizontal expansion strategy even as it
kept its eyes open for opportunities in new categories of beverages.
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Global Competition Policy Magazine. A Hard Landing in the Soft
Drink Market - MOFCOM's Veto of the Coca-Cola & Huiyuan
Deal . April 2009
MOFCOM gave three reasons for blocking the transaction. First, in its view, Coca-
Cola might be able to leverage its dominant position in the market for carbonated soft
drinks into the fruit juice market. Second, MOFCOM found that the addition of the
Huiyuan brand name to Coca-Cola’s own fruit juice brand could increase entry
barriers. Third, MOFCOM expressed concern that the transaction could negatively
affect the ability of domestic small- and medium-sized companies to compete.
Maize or corn is by far the largest cereal FMCG grown around the world. In the last
three years, global FMCG output averaged 800 million tonnes. The US is a dominant
producer and consumer.
Traditionally, it is used for humans and feed for livestock and poultry. Industrial uses
include making of starch. In recent years, with emergence of bio-fuels, corn is used
for production of ethanol for blending with gasoline. The new demand segment has
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helped expand corn utilisation, but tightened availability of the cereal for the
traditional uses as food and feed.
India ranks among the top 10 of world's maize producers. Indeed, in our country,
maize is an exceptional success story among generally poorly performing cereals.
Acreage and output have been steadily rising. Currently, this coarse grain is cultivated
in about 8 million hectares and the yield is approximately 2.3 tonnes a hectare. Less
than a quarter of the planted area is irrigated.
Although the cereal is produced virtually across the country, Andhra Pradesh,
Karnataka and Rajasthan are among the top producing States. Cultivated mainly in the
kharif season, maize recorded output of 18.9 mt in 2007-08 and a record 19.7 mt in
2008-09. There is tremendous scope for raising yields through improved input
management and agronomic practices. The crop is susceptible to vagaries of
monsoon. No wonder, total production in 2000-10 declined to 17.3 mt following
inadequate precipitation last year.
In the US, introduction of genetically modified corn (Bt corn) has helped raise yields
and cut losses arising out of pest and disease attacks. India is an occasional exporter
of maize to the world market; but the volumes are modest. Rising domestic demand
from food, feed and industrial sectors has resulted in tightening availability and firm
prices. Going forward, a robust growth in the livestock and poultry industry is sure to
translate into higher demand for feed corn. Some reports project such requirement at
30 mt by 2020.
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We need to start researching heat-tolerant and drought-tolerant varieties. The user
industry, mainly poultry and animal feed industry, can contribute to strengthening
maize production and productivity.
To diversify textiles and clothing exports and to reduce dependence on the US and EU
27, the Government is promoting exports to South East Asia under its ‘Look East
Policy’.
The Minister of Textile, Mr Dayanidhi Maran, has invited the Japanese textiles
industry to collaborate with the Indian textiles industry in manufacturing of fabric and
garmenting, setting up of greenfield units in textiles machinery, manmade fibre and
yarn and create brand equity with Indian apparel companies.
Mr Maran was addressing the business meet hosted by the Japan-India Business
Cooperation Committee on ‘Current status of Growing Textiles Industry and
investment opportunities’ in Tokyo.
During the interaction with the top 50 Japanese businessmen, which included many
from the textiles industry, the Minister apprised them of various advantages in
investing in India, particularlyin the textiles sector, which has a highly skilled
workforce, high capital-employment ratio and immense potential to promote
employment, and a strong and diverse raw material base.
“India is the largest producer of jute, second largest producer of cotton and man-made
fibre and yarn, and third largest producer of silk. India has a vertical and horizontal
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integrated textiles value chain, and represents a strong presence in the entire value
chain from raw material to finished goods. The average labour cost in India is $ 0.7 a
hour compared to $ 20 a hour in Japan,” he added.
Outlining the investment scenario in the Indian textiles sector, Mr Maran said that
investment is expected to increase from $ 22.3 billion in 2004-08 to $ 30.9 billion by
2010.
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R.E.D CONCEPT
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MARKET SEGMENTATION
CHANNELS
Which type of outlet is this like E&D (Eating & Drinking), GROCERY, or
CONVENIENCE?
CLASSES
BRONZE : Those outlets, which sells less than 200 carets per year.
DIAMOND : Those outlets, which sells 800 & above carets per year.
INCOME
Whoever costumer comes on shop which income class they belongs like high
Income, medium Income, low Income.
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R.E.D.
PRE-SALE CONCEPT
This is the new concept that had started from the year 2007. In the Pre-
Sale the company takes order one day before and accordingly company
delivers their products for each route.
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67
What is Horizontal Expansion?
Expansion of business capacity through the absorption of facilities or
buildings as well as through the acquisition of new equipment to handle an increased
volume in sales in which the business is already engaged. In microeconomics and
strategic management, the term Horizontal Expansion describes a type of ownership
and control. It is a strategy used by a business or corporation that seeks to sell a type
of product in numerous markets. Horizontal Expansion in marketing is much more
common than Vertical Expansion is in production. Horizontal Expansion occurs when
a firm is being taken over by, or merged with, another firm which is in the same
industry and in the same stage of production as the merged firm, e.g. Pepsi has
adopted strategy of Vertical Expansion by which Pepsi wants to improve it’s sale
from Coke monopoly outlets, means Coke’s monopoly outlets are being taken over by
Pepsi now in this condition to improve it’s sale Coke need to open new outlets which
is called Horizontal Expansion Strategy. A monopoly created through Horizontal
Expansion is called a Horizontal Monopoly.
This is the expansion of a firm within an industry in which it is already active
for the purpose of increasing its share of the market for a particular product or service.
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Benefits of horizontal expansion:
• Provides Incremental Volume & Revenue for Business
• By horizontal expansion there will be more outlets of our product In the market
which will sell our product in more quantity. This will generate incremental revenue
for the business.
• Helps Improve Route Productivity
• There are pre determined routes through which product is transported and delivered
at the coke outlets. If we open more outlets on the routes it will increase the
productivity because more outlets will be covered and more product will be delivered
with a negligible increase in time and efforts. Hence it will improve productivity of
the route
• Improves Profitability of Our Distributors Expenses on routes and delivery of
product are incurred by the distributers. Opening new outlets will give more revenue
to our distributors also. With the increase in route productivity will improve
profitability of the distributors.
• Reduced Dependence on Large Customers, We know that coke products have a
very good demand. To comply with this we have to provide large amount of supply.
In case we have few outlets a large amount of stock is gathered at few retailers. In this
case they become monopolistic and demand many things like coolers refrigerators
discounts margins etc. from the company. So it is very necessary to reduce
dependence on large retailers by opening new outlets.
• Increase market visibility Selling at more outlets give more market visibility of the
product which gives higher product recognition and brand value to the products.
• Economies of scale
• Economies of scope
• Increase in market power over supplier and downstream market channels.
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Advantage of horizontal expansion over vertical expansion:
Both expansion techniques are meant for increasing sales volumes. But in horizontal
expansion company can earn more profits by spending less. Let’s see the profit story
of horizontal expansion.
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RESEARCH METHODOLOGY
This research involved a study, which was descriptive in nature it basically
aims at gathering data about how the coca-cola scheme playing in the mind of
shopkeepers & consumer.
a) Observation
b) Experiment
c) Surveys
But here, only surveys method of data collection is preferred which is very
suitable to reach the researcher motto.
A. Research instrument: Printed Questionnaire
was used as the research instrument to collect the required information.
B. Area of surveys : The survey was conducted in
different location of Kanpur city.
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I. Sampling unit : The retailer of Grocery shop,
general store, betel shop, and medicine store was selected from
different places of kanpur
II. Sampling size : 250 Outlets.
III. Sampling procedure : Simple random sampling
procedure was followed.
IV. Sampling method: Data were collected by retailer
survey. The retailers are directly contacted and interviewed at their retail
counter.
2) Secondary data collection : As secondary data were not
available with shopkeepers as well as stockiest, so these were collected from
company records.
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ANALYSIS OF DATA
SURVEY ANALYSIS
THE SURVEY WAS CONDUCTED IN DIFFERENT LOCATION
OF KANPUR.A TOTAL SURVEY OF 250 OUTLETS WAS CONDUCTED.
1%
8% 2% 7%
82%
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Here 82% Retailers are having 6 shelf Freezer,7% Retailers are having De-
Freezer, 8% Retailers are having 8 shelf Freezer, 1% Retailers are having 4 shelf
Freezer & 2% Retailers are having Double Door Freezer.
200
150
100
50
0
1 2
Series1 200 50
1.GOOD
2.GAP
distribution system.
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8%
7%
THUMS UP
6%
COCA COLA
SPRITE
14% LIMCA
63% FANTA
2% MAZZA
So among all the products of coca-cola 63% market covered by Thumsup, 14%
market covered by Sprite, 8% market covered by Mazza, 7% market covered
by Coke, 6% market covered by Limca & 2% market covered by Fanta.
70% 66%
60%
50%
40% 29%
30% Series1
20% 5%
10%
0%
GROCERY
CONV.
E&D
CHANNEL
77
19
92
DIAMOND
83
GOLD
SILVER
BRONZE
56
31% HIGH
MEADIUM
54%
LOW
15%
Here 54 % Market covered by high income groups which includes Diamong & Gold
Classes, 31% Market covered by Medium income groups which includes Silver Class
& 15% Market covered by low income groups which includes Bronze Class.
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PEPSI
29%
PEPSI
COKE
COKE
71%
79
CONCLUSION
80
FINDINGS
81
SUGGESTION
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Surveyors Name: ________________________ Outlet Name: ______________
Address: _________________________________________________________
Mob: ________________________Age____________ Sex ________________
Yes No
Yes No
Good Gap
6. According to you, Which flavor is the most preffered one among customers?
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Diamond Gold Silver Bronze
Coca-Cola Pepsi
REFRENCES
WEBLIOGRAPHY :
1. http://www.scanaxn.com/doc/11465324/BC-Cocacola-Summer-Training-
Full-Report
2. http://www.pdftop.com/ebook/bcg+matrix+of+coca+c
ola/
3. http://findarticles.com/p/articles/mi_m0EIN/is_2007_D
ec_10/ai_n21149578/
4. http://www.oppapers.com/subjects/horizontal-expansion-in-coca-cola-
page1.html
5. http://www.hinduonnet.com/2003/06/03/stories/200306
0301601800.htm
6. http://papers.ssrn.com/sol3/papers.cfm?
abstract_id=1396968
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REFERENCE BOOKS
GUPTA S.P, “Statistical Methods” Sultan chand & sons Publishers New
Delhi, Thirty fourth editions, 2005
TOTAL
9. 300 ML (COLA+3)
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10. Mobile PET (COLA+3)
TOTAL
E&D
15. COMBO BRANDS ( AT LEAST 3)
SIGNATURE OF SURVEYOR
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