ASSIGNMENT OF MARKETING MANAGEMENT

HOME WORK:-4
SUBMITTED TO: MR. KRISHAN GOPAL SUBMITTED BY: MRITUNJAY KUMAR ROLL NO: - B37 REG. NO: - 11003232 CLASS: - MBA (2nd SEMESTER)

INTRODUCTION

The cola industry has phenomenal possibilities for rocketing profit growth in spite of the sign of relief heaved by the manufacture at the abrupt sensational termination of coca cola monopoly the tastes of cola is by no means extinguished the coca. Cola have a status symbol to it..., generated by the sub standard, penetrated, advertising and extensive distribution network. Total soft drink segment is growing at the rate of 10% per year still if international standard area considered the per capita consumption of three serving in rock bottom, less than even our neighbors Pakistan and Bangladesh, where it is four more as much. So with kind of a market potential coke entered in India in 1991 after the permissions of setting up Britico Food company to coke was granted by the government in Pune in 1992 the plant was established for is deducted then the bottle are taken out of the line and cleaned again or reject. The most important step is the mixing of drink concentrate dissolved in the soft water the sugar syrup at the same time. Carbon dioxide is passed in the drink to produce a fizz.

After the crowing of the bottle the crown contains the manufacturing data batch number and Time. After crowing the bottle, the bottle comes again at checking screen for checking the bottle. THE PRESENT POSITION OF COCA COLA IN INDIA Coke is a households name and is the lips of every one. In present time every person knows the name of coca cola since India is one of biggest market and sultry summer from march the end of October and huge population has immensely helped in the sales the sales of coke in India and its making it more economical. Last years, the market share of Coca Cola was not specific. In this year companys top management adopted new policy and increased the rate of all brands of coke. By this decision top management determined the rate of 300 ml / 10Rs. And the brand of 200 ml determines the rate of this brand 7Rs. By which medium size family and lower level family can be taken the enjoy of coke. By this decision companys marketing share has been increased. In present time coke is captured approximate 60% market share in cold Dinks line. Now coke has defeated all the soft drinks

company. According to service and according to advertising coke has appropriate position. It has now emerged as the winner and has a good image in the market.

FOUR PS OF MARKETING
Product Price Place Promotion

PRODUCT: - In marketing, a product is anything that can be offered to a market that might satisfy a want or need. It is of two types: Tangible (physical) and Intangible (non-physical). Since services have been at the forefront of all modern marketing strategies, some intangibility has become essential part of marketing offers. It is therefore the complete bundle of benefits or satisfactions that buyers perceive they will obtain if they purchase the product. It is the sum of all physical, psychological, symbolic, and service attributes, not just the physical merchandise. All products offered in a market can be placed between Tangible (Pure Product) and Intangible (Pure Service) spectrum. A product is similar to goods. In accounting, goods are physical objects that are available in the market place. This differentiates them from a service, which is a nonmaterial product. The term goods is used primarily by those that wish to abstract from the details of a given product. As such it is useful in accounting and economic models. The term product is used primarily by those that wish to examine the details and richness of a specific market offering. As such it is useful to marketers, managers, and quality control specialists. A service is a non-material or intangible product - such as professional consultancy, serving, or an entertainment experience. COCA COLA PRODUCT The Coca-Cola formula is The Coca-Cola Company's secret recipe for Coca-Cola. As a publicity marketing strategy started by Robert W. Woodruff, the company presents the formula as one of the most closely held trade secrets ever and only a few employees know or have access to. This Coca-Cola formula appears to be the original formula to Coca-Cola. It is from the book For God, Country and CocaCola. The company Coca-cola is a multinational and it is not limited to one product. Product mix of Coca-Cola consists of the various brand packs and flavors given in the table. Product strategy of the Coca-Cola is to promote all the brands available in all the brands packs and to introduce the product in new flavors and. even

new product. Regarding this Kinley soda is introduced. Fanta in green apple flavor is also introduced.

COKE BRANDS IN INDIAN ORIGIN

COCA-COLA: Developed in a brass pot in 1886, Coca-Cola is the most recognized and admired trademark around the globe. Not to mention the best selling soft drink in the world. SPRITE: In 1961, a citrus-flavored drink made its U.S. debut, using "Sprite Boy" as inspiration for its name. This elf with silver hair and a big smile was used in 1940s advertising for Coca-Cola. Sprite is now the fastest growing major soft drink in the U.S., and the world's most popular lemon-lime soft drink. FANTA: The name "Fanta" was first registered as a trademark in Germany in 1941, when it was used for a few years for a soft drink created from available materials and flavors. The name was then revived in 1955 in Naples, Italy, when it was used for the "Fanta" orange drink we know today. It is now the trademark name for a line of flavored drinks sold around the world. DIET COKE: The extension of the Coca-Cola name began in 1982 with the introduction of diet Coke (also called Coca-Cola light in some countries). Diet coke quickly became the number- one selling lowcalorie soft drink in the world.

LIMCA: This is thirst-quenching beverage features a fresh and light lemon-lime taste and a lighthearted attitude. The Limca brand was introduced in 1971 and acquired by the Coca-Cola Company in 1993.

MAAZA: Maaza, launched in 1984 and acquired by The Coca-Cola Company in 1993, is a non carbonated mango soft drink with a rich, juicy m natural mango taste.

THUMPS UP: In 1993, The Coca-Cola Company acquired this brand, which was originally introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian Cola.

KINLEY WATER: This is thirst-quenching beverage features fresh the fresh water with the saturated oxygen level.

SUNFILL: This is thirst-quenching beverage features a fresh and light orange taste and a lighthearted attitude.

MINUTE MAID: It is a product line of beverages, usually associated with orange juice, but now extends to soft drinks of many kinds. The Minute Maid Company is now owned by Coca-Cola, and is the world's largest marketer of fruit juices and drinks. It is headquartered in Houston, Texas.

VAULT: It is a carbonated beverage that was released by The Coca-Cola Company in June 2005.

FULL THROTTLE: It is an energy drink brand produced by The CocaCola Company. It debuted in late 2004 in North America.

PRODUCT RANGE:

Flavor Cola

Ingredients Cola Flavor carbonated water sugar

Pack 200Ml. 300Ml. 500Ml. 1.5 Litre 2 Litre 200Ml. 300Ml. 500Ml. 1.5 Litre 2 Litre 250 ML

Product Coke, Thumsup

Company Coca-Coal

Pepsi Fanta

Pepsi Coca-Cola

Orange

Orange Flavor + Carbonated Water+ Sugar

Mirinda Maaza Slice

Pepsi Coca-Cola Pepsi Coca-Cola

Fruit Juice

Mango Pulp+ Treated water+ sugar

Cloudy Lemon Lemon Flavor + Carbonated Water+ Sugar

200Ml. 300Ml. 500Ml. 1.5 Litre 2 Litre 200Ml. 300Ml. 500Ml. 1.5 Litre 2 Litre

Limca

Mirinda Lemon Sprite

Pepsi Coca-Cola

Clear Lemon

Lemon Flavor+ Carbonated Water + Sugar

7Up Dew

Pepsi

PRICE
In economics and business, the price is the assigned numerical monetary value of a good, service or asset. Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. Pricing is a big part of the marketing mix. Choosing the right price and the right pricing strategy is crucial to the marketing process. The price of the product is not something that is fixed. On the other hand the price of the product depends on many other factors. Some times the price of the product has got nothing to do with the actual product itself. The price may act as a way to attract target customers.

The price of the product is decided keeping many things in mind. These things include factors like cost incurred on the product, target market, competitors, consumer buying capacity etc.

COCA COLA PRICE

Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was cost based i.e. it was decided on the cost which was spent on making the product plus the profit and other expenses. But after the emergence of other companies especially the likes of Pepsi, Coca-cola started with a pricing strategy based on the basis of competition. Nowadays more expenses are spent on advertising my soft-drink companies rather than on manufacturing. Few year before Coke has brought in a revolution especially in Indian markets with the Rs. 5 pricing strategy which was very famous. It was the first company to introduce the small bottle of Coke for just Re.5. This campaign was very successful especially with the price conscious Indian consumers. Even today most prices of Coke are decided on the basis of the competition in the market. Regarding the Pricing Policy we are not able to have the information regarding the cost of the product and prices in the other origin but we have the prices at which the products available in the market below: All the soft drinks product of the company except MAZZA will have the same prices on all the different sizes; ON 200ML: The prices of the bottle available in the market is Rs.9 ON 300ML: The prices of the bottle available in the market is Rs.12 ON 600ML: The prices of the bottle available in the market is Rs.22 and it can be for soft drinks except MAZZA ON 1lt. Pack: The prices of this pack available in the market is Rs.35, MAAZA is of Rs.40 and KINLEY water bottle is of Rs.15 ON 2lt. Pack: The prices of this pack available in the market are Rs.60 and MAAZA is of Rs.80. 10% discount has been given in the big retail outlets only in case of 1lt. and 2lt. pack. Regarding the allowances which are not fixed and can be changed time to time.

PLACE
Place is a term that has a variety of meanings in a dictionary sense, but which is principally used in a geographic sense as a noun to denote location, though in a sense of a location identified with that which is located there. In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a geographic location, an industry, a group of people (a segment) to whom a company wants to sell its products or services, such as young professional women (e.g. for selling cosmetics) or middle-aged family men (e.g. for selling family cars). COCA COLA PLACE The Coca-Cola Company in India is governed from its corporate office located at Gurgaon in Haryana. It governs the working of five zones covering whole India these zones are: - Northern zone, Eastern zone, Western zone, Southern zone and Andhra Pradesh zone. These zones are divided in to various, plants, which govern the area assigned to them. The areas are the various distribution centers called distributors and C&F agents. Then comes the retailers/customer for the company's product, they receive goods from distributors and C&F agents. Finally consumer is there, having the product from the customer's shops or delivered to their home, it is more clearly visible through this chart. The Coca-Cola Company, which gave its reach to the mouth of billions of people all around the world having a wide distribution, network. In India, the pace and speed at which Coca-Cola has widened its business is really amazing. Distribution network is the biggest strength of the company. In India, there are over 5 million retail outlets dispersed all over the country. The retailing industry provides employment to over 18mn people. 1 out of every 25 families in India is engaged in the business of retailing. Ownership and management are predominantly family controlled. However in sharp contrast to developed countries, unit average size of a retail outlet in India is very small. Organized retailing, however, has been a recent phenomenon and is relatively undeveloped. There are no large super market chains/ shopping malls. Consumers are unwilling to pay a premium for convenience shopping as their counterparts in the western countries do. While small chain stores called Apna Bazaars and Sahakan Bhandaars, which offer products at reasonable prices, have been

fairly popular, Department Stores and Food Stores are slowly gaining popularity. A large number of corporate have recently ventured into retailing. The retail outlet in India can be broadly categorized as follows: Grocery stores General purpose stores Food stores Pan bidi shops Chemist/ drug stores Cold chains The relative share of grocers dropped from over 50% in the early 90's to 35% in the late 90's. Chemist outlets on the other hand, have been expanding their product range to include high margin FMCG products from shampoos to ketchup. Pan-wallas are also emerging as full fledged consumer product outlets. COMPOSITION OF URBAN OUTLETS
Grocers Cosmetic stores Chemist Food Stores General Stores Pan stores Others 34.7% 4.0% 6.3% 6.6% 14.4% 17.0% 17.0%

COMPOSITION OF RURAL OUTLETS

Grocers Cosmetic stores Chemist Others 55.6% 13.5% 3.3% 27.6%

DISTRIBUTION: Marketing or Distribution channel refers to the set of marketing intermediaries which manufacturer's link together to reach their products to the ultimate consumers. Depending on the product, nature of market and manufacturers' resources/strategy, there can be one or more links between the manufacturer and consumer.

 Manufacturer Retailers Manufacturer - Wholesalers Retailers Manufacturer - Stockists - Wholesalers - Retailers.

PROMOTION
Promotion is one of the four aspects of marketing. Promotion comprises four subcategories: Advertising Personal selling Sales promotion Publicity and public relations The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.

COCA COLA PROMOTION

This part of the marketing is playing a very vital and important role in the current situation in India. Looking at the competition and promotion and advertising budget of both the companies coca cola and Pepsi, one can easily estimate the importance of this. The promotion mix of Coca-Cola is divided in to Top line promotion includes the promotion designed and done by the company's corporate office of Gurgaon and the office of Bombay TV ads, design of banners, and other POS done by the company simultaneously all around India with no Difference in designs etc. fall in this category. Below the line promotion includes the promotion schemes, publicity material, POS display done by the company from zonal, plant, sales manager and area sales manager level. . At the sales manager and area sales manager level the promotion done exclusively for the cities in their respective area and other POS display. ADVERTISING AND PROMOTION: Advertising consists of non-personal form of communications. The communication is conducted through trade media under

player sponsorships. Advertising aims at providing information about the product arouse demand for the product and emphasize on superior features of the advertised product over others. Players have to decide on overall advertisement budget, message and mode of presentation, type of media, timing etc. They invariably do post audit of advertising efficacy. Promotions are of two types viz. pull promotions where consumers are incentivized and push promotion where dealers/ retailers are incentivized. There are several forms of promotion such as distributing free samples, discount coupons, gift offers for consumers and target based incentives and display schemes etc for retailers. Marketers also sponsor charity programs, sports etc to promote corporate/ brand image.

SALES PROMTION: It is a logistics control process that applies situational

understanding from both the operational and logistical common operating pictures in order to dynamically control and synchronize the flow of materiel through the distribution pipelines, including retrograde and lateral distribution. The last part of the definition - retrograde and lateral distribution - is critical to future success and is often overlooked in distribution management schemes. Our ability to move materiel in any direction through the pipelines provides an economy of effort that actually becomes a force multiplier. In this manner, distribution management becomes a key enabler of logistics transformation, by reducing materiel requirements to only those that are needed and by leveraging stockage positioning to reduce the total cost of sustainment. It consists with: Advanced Forecasting Advanced Pricing Advanced Stock Valuation Agreement Management Bulk Stock Valuation Enterprise Facility Planning Inventory Management

A list of Celebrities that are brand ambassadors for the cola companies are as follows. These celebrities are not only asked to work in the advertisements but they also have to use the product promoted by them and they should not use the company rivals products.

CELEBRITY ENDORSMENT
Amir Khan Hrithik Roshan Ganesh Gautam Gambhir Virender Sehwag Vijay Akshay Kumar

CRITICAL ANALYSIS OF STRATEGIES

PRODUCT Strength: - Quality products are the major strength of the company if it sustained by the company. The product quality has improved due to upgraded quality of packaging and the ameliorated liquid in comparison to its competitors. Consistency in the performance will leads to the quality management. Coca Cola Company manages its quality throughout the world very well. Weaknesses: - Coca Cola is a very successful company, with limited weaknesses of the product. However they do have a variety of weaknesses that need to be addressed if they want to rise to the next level. While many people have good things to say, there are many individuals who are against Coca Cola as a company, and the products in which they produce. Word of mouth unfortunately is something that is very hard to control. While people will have their opinions, you have to try to sway their negative views. If bad comments and views are put out to people who have yet to try Coca Cola products, then that could produce a lost customer which shows why word of mouth is a weakness. Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Colas drinks. Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types. Most are unknown and rarely seen for available purchase. Another weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like coke is not very beneficial to your body and your health. With todays constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the product that is labeled detrimental to your health.

Price
Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market following "Seen as sold" Different Price in Different Seasons:

Sometimes Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in India. So in winter they reduce their prices to maintain their sales and profit. If coca cola is considered a luxury product. Then there is the tax rate system 15% - sales tax 20% - excise duty 27% - goes to government 03% - In making Budget After paying all these taxes coca cola has to pay electricity charges. We have to spend on distributions. After paying all these expenses Cokes margin squeezed and consumers have to pay for increasing tariffs. The price overview does not analyze discount prices such as coupons. These discount prices could be the considering factor between a users decision to buy Coke or Pepsi. The price overview also fails to establish co-op advertising between two companies such as Coke and Knotts Berry Farm. This co-op between two companies gives price cuts to Knotts Berry Farm to those who buy Coke. This may influence a consumer to purchase a particular product over another. These are the opportunities through which we can increase the price and can get profits. There are much more threats in increasing prices. Because same problem of substitute. If Coke increases the price lets say 1 rupee. Then people definitely wont go for coke. They have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices. Coke will lose the margin of its profit and can face loss.

Promotion Advertisement: - This is an Advertisement for Coca-Cola. The logo of the

advertisement is a classic never goes out of style. Also, in this picture, we see that the artist combined small pictures to create this image of the coke bottle. The artist used Breakfast at Tiffanys, The Beatles, The American Flag, The Rolling Stones, Marilyn Monroe, Baseball, Apple Pie, a Cadillac, and a lover coming back from the war (either World War I or World War II). These pictures could all be characterized as American classics. And the artist is trying to bring up the assumption that CocaCola is an American Classic. In this picture, there is a very good use of contrast. The artist of the ad used different bright nesses of each of the small pictures so not only

could it make the picture look like a coke bottle, but that you can see all the pictures within the coke bottle picture. The color is involved in this contrast. The pictures in the ad were red in order to show the features of an actual coke bottle. Proximity is used in this ad. The small pictures symbolizing classic were all close proximity to each other to create the one image of the coke bottle. The pictures symbolized everything that are considered as classic. And since the ad is saying that Coca-cola is classic, the artist combined all the pictures representing classic America into one classic coke bottle. Repetition was also used in this picture as well. One way is that the fonts of the Coca-cola label and the quote at the bottom are the same. I would presume the reason why is because that, what I would call, the Coca-Cola font; which is italicized and cursive. The critical analysis only analyzes Coca-Cola the drink without comparing it to the other Coca-Cola products found throughout the store. Does this enhance the percentage of shelf space dedicated to Coca-Cola? The critical analysis was able to establish the six promotional strategies that are used by Coca-Cola. In doing so, they created a list of promotional tools employed by Coca-Cola. Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that is virtually incomparable. Coca Cola is known very well worldwide. It's branding is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no beverage company compares to Coca Cola's social popularity status. Some people buy coke, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying. At the other end of the spectrum, certain individuals choose not to drink coke, based solely on rebelling from the world's idea that coke is something of such great power. Overwhelming is the best word to describe Coca Cola's popularity. It is scary to think that its popularity has been constantly growing over the years and the possibility that there is still room to grow. If you speak the words Coca Cola, it would definitely be recognized all around the world. Money is another thing that is strength of the company. Coca Cola deals with massive amounts of money all year. Like all businesses, they have had their ups and downs financially, but they have done well in this compartment and will continue to do well and improve. The money they are

earning is substantially better than most beverage companies, and with that money, they put back into their own company so that they can improve. Another strength that is very important to Coca Cola is customer loyalty. The 80/20 rule comes into effect in this situation. Eighty percent of their profit comes from 20% of their loyal customers. Many people/families are extremely loyal to Coca Cola. It would not be rare to constantly find bottles and cases of a product such as coke in a house. It seems that some people would drink coke religiously like some people would drink water and milk. This is an improbable feat. Customers will continually purchase these products, and will probably do so for a very long time. If two parents were avid Coca Cola drinkers, this will be passed down do their children as they grow loyal to the company. With Coca Colas ability to sell their product all over the world, customers will continue to buy what they know and what they likeCoca Cola products. Weaknesses for any business charge to be both minimized and monitored in adjustment to finer accomplish abundance and ability in their business's activities, Coke is no exception.

Although calm business as able-bodied as abounding all-embracing markets are advancing (volumes in Latin America were up 12%), Coca-Cola has afresh appear some "declines in assemblage case volumes in Indonesia and Thailand due to bargain customer purchasing power."

According to an commodity in Fortune magazine, "In Japan, assemblage case sales fell 3% in the additional division [of 1998]...scary because while Japan generates about 5% of common volume, it contributes three times as abundant to profits.

Coca-Cola on the added ancillary has furnishings on the teeth which is an affair for bloom care. It as well has got amoroso by which connected bubbler of Coca-Cola may could cause bloom problems. Being absorbed to Coca-Cola as well is a bloom problem, because bubbler of Coca-Cola circadian has an aftereffect on your physique afterward few years.

COMPETITORS Cokes major competitor is PEPSI and there is no hesitation to say this because every one knows that and all the other cold drinks and water, coffee, tea is the competitors.

Threats are well planned. Price is the major threat. When price goes certain beyond the exact price whether come down or go higher its effects the consumption of soft drink. Because when the price goes higher people go for the substitute of coke i.e. Pepsi. And when price goes down they think that there is must be something wrong in it. In short it all depends on customers perception. How to increase the volume of consumers? Coke can increase the volume by expanding the industry of coke. Through advertisements, offering different interesting things to attract people towards this product. How to increase the interest level of consumers? Coke is increasing the interest level of consumers by offering different flavors. For example Coke is increasing the number of flavors in Fanta, this is one of the product of coke. Through offering different flavors Coke can increase the Level of consumers and through this profits can be gained.

CONCLUSION
Cola-Cola adopt a good customer relationship management, it is focus on the, segment of the product because each segment is affected by different sets of factor which hamper or enhance sales. Each segment had its own Pros & Cons. So we have to understand the various segment of soft drink industry that which flavor is existing more in the market, Such as Thums-up strong brand of coke which is more popular in young generation. I also observe about fate dealer, sub dealer, monopoly counter & its marketing strategy. Dealer is influence wrong direction to the market. They are supply product at high margin with low scheme. As we know till now since ill soft drink industry the concept of brand loyalty is not in that shape in which it is in countries. So company could take some steps to be to have a good report with the retailers why supply them regularly and provide them with other monetary benefit.