A STUDY ON

COMPETITIVE STRATEGY IN SOFT DRINK DISTRIBUTION

WITH REFERENCE TO

Hindustan Coca-Co a B!"!#a$!s P"t%&td' Visa()a*atana+%

A Project Report Submitted in the partial fulfillment for the Award of the Degree of
Submitted by

S,a+a a Rao In-a#a*u

.R!$ No/ 012345111567
Under the guidance of

Mrs ! "I#!$! %H!R&!"I' M%! Facu(ty in management studies

MASTER OF BUSINESS ADMINISTRATION ADITYA INSTITUTE OF PG STUDIES'

!)% road' suram*a(em' E & ' +,,- . /,

ACKNO8&EDGEMENT
I 0ou(d (i1e to ta1e this o**ortunity to e2*ress my dee* and *rofound gratitude to the *eo*(e concerned 0ho ha3e he(*ed me direct(y or indirect(y in successfu( com*(etion of this *ro4ect I e2*ress my sincere gratitude to Mr% 9% NAGENDRA KUMAR' M%!' and head of the de*artment for gi3ing us the o**ortunity to do the *ro4ect 0or1 I am than1fu( to M#s% A% VI9AYA BHARGAVI' M%!' for being my facu(ty guide and gratefu( to his direction and ins*iration I am than1fu( to Sri K% RAGUNADHAN' mar1eting de3e(o*ment manager' and Sri D%V%V SATYAMNARAYANA' Training manager' *ear( %ott(ing 53t 6td ' "isa1ha*atnam' for *ro3iding me a(( the necessary information in carrying out my *ro4ect study 6ast but not (east my sincere than1s to my *arents and a(so friends 0ho he(*ed me direct(y or indirect(y during our *ro4ect 0or1

5(ace7 IN9ARAPU7 )ate7 01234511156

.SYAMA&A

RAO

Regd

No

DEC&ARATION

I hereby dec(are that this *ro4ect re*ort entit(ed ! STU)$ ON

:COMPETITIVE STRATEGY IN SOFT DRINK DISTRIBUTION; 0ith

reference to% HINDUSTAN COCA-CO&A BEERAGE P"t% &td' at

VISAKHAPATNAM' submitted by me in *artia( fu(fi((ment of master of business administration to the de*artment of M % ! ' ! U ' Adit,a institut! o< P%G% studi!s ' Suram*a(em' in genuine and bonafied 0or1 done by me and it is not *re3ious(y submitted by me for the a0ard any degree or di*(oma in any other Institute or Uni3ersity

5(ace7 )ate7

.SYAMA&A RAO IN9ARAPU7 Regd No 01234511156

ADITYA INSTITUTE OFP%G%STUDIES

DEPARTMENT OF BUSINESS MANAGEMENT
(Approved By Aicte, Affiliated To AU)

Adit,a Na$a#' ADB Road' SURAMPA&EM-36646=

CERTIFICATE

This is to certify that the *ro4ect entit(ed 8COMPETITIVE STRATEGY IN SOFT DRINK DISTRIBUTION; is the bonafide 0or1 done by Mrs A%VI9AYA BHARGAVI' M%! during the *eriod +,,-./, in *artia( fu(fi((ment of the re9uirement for the a0ard of the )egree of MASTER OF BUSINESS ADMINISTRATION IN ADITYA INSTITUTE OF P%G% STUDIES affi(iated to AU%

PRO9ECT GUIDE/

HEAD OF THE DEPARTMENT o< MBA M#% 9%NAGENDRA KUMAR

A% VI9AYA BHARGAVI Facu(ty in management studies

CONTENTS
Pa$! No/

CHAPTER 5/
Int#oduction N!!d <o# t)! stud, O>-!cti"!s M!t)odo o$,
&i+itations

5- 55

CHAPTER 0/
03 T)! sc!na#io o< so<t d#in( indust#, in India

50-

CHAPTER 6/
Co+*an, *#o<i !

0? - 42

CHAPTER 4/
T)!o#!tica F#a+! 8o#(

4@ - ==

CHAPTER 3/
Data Ana ,sis and Int!#*#!tation

=2 - @1

CHAPTER ?/
Findin$s and Su$$!stion

@5 - @2

Bi> io$#a*),

@@

CHAPTER1
Int#oduction N!!d <o# t)! stud, O>-!cti"!s M!t)odo o$, &i+itations

INTRODUCTION
Non.a(coho(ic soft drin1 be3erage mar1et can be di3ided into fruit drin1s and soft drin1s Soft drin1s are a3ai(ab(e in g(ass bott(es' a(uminum cans' 5ET bott(es or dis*osa( containers can be di3ided into Soft drin1s are being manufactured carbonated and non.carbonated drin1s

since so (ong There are 3arious f(a3ors in soft

drin1s that are (emon' orange' mango and co(a In India' aerated 0ater a(so 1no0n as 8SO)!: 0as introduced since time in memoria( Soft drin1s may be di3ided into t0o c(asses name(y / + !erated tab(e 0aters Efficient be3erages

The efficient be3erages are f(a3ored and are 1no0n as Soda Water In /;<+ in *roducing dated minera( s*ring 0ater (arge sca(e manufacturers of accurate 0ater 0as started by 85!U6: at &ene3a after 0ars by 8SHOW E55E: in 6ondon In United States of !merica' s*o1esman added fruit 4uice as f(a3or and soft drin1s industry from them From the origina( conce*tion of the irritation of the natura( carbonate 0aters from s*rings' the industry has broad needed to inc(ude the *roduction of created s0eet drin1s and substitutes for be3erages such as idea' 0hich are decorated by fermentation The techni9ues of (arge detached 0ater 0ere considerab(y im*ro3ed as time being

Scientific and techno(ogica( *rogress has charged the *hase of e3ery day (ife of man and soft drin1 industry is not in e2ce*tion The (atest science and techno(ogy has im*ro3ed the 9ua(ity as 0e(( as the 9uantity of *roduction The incredib(e *rogress is a(so achie3ed in trans*ortation of soft drin1s that is distribution to e3ery mas1 and corner of the country In 3ie0 of the ra*id *rogress and the s*read of soft drin1 *roductions' the industry dates to the tastes and needs of consumers and industry are (arge dimensions Co(a' 6emon and oranges are carbonated drin1s and drin1s inc(ude mango drin1s Soft drin1s can a(so be di3ided into non.carbonated Co(a *roducts

and non.co(a *roducts Co(a *roducts (i1e 5e*si' Coca.Co(a' Thum*s U*' and )iet Co1e' )iet 5e*si etc mar1et !ccount for near(y =/.=+> of the tota( sof drin1s of f(a3ors

Non.Co(a *roducts constitute ?=>' and based on the ty*es

a3ai(ab(e can be di3ided into Orange' C(oudy 6ime' C(ear 6ime and Mango

SOFT DRINK INDUSTRY IN INDIA

The entire soft drin1 industry can broad(y be c(assified into t0o heads as fo((o0s' Organi@ed and Un. organi@ed The organi@ed sector can be further di3ided into carbonated Abott(ed soft drin1B and Non.carbonated Atetra *ac1s' concentrates and other s9uashesB The unorgani@ed sector can be identified 0ith go(i soda' (assies' fruit 4uices etc Out of the abo3e the bott(ed carbonated soft drin1 industry is a fast gro0ing mar1et 0hich inc(udes a(( ty*e of non a(coho(ic carbonated f(a3ored and s0eetened be3erages The carbonated soft

drin1s are most(y a3ai(ab(e in g(ass bott(es' gi3e. a0ay bott(es' cans' *ets' dis*ensers and are a3ai(ab(e in a 3ariety of f(a3ors' under different brand names'

in different 9uantities The turno3er of India soft drin1 industry in 3a(ue terms has been estimated to be around Rs /-,, cores 0ith ? (a1h retai(ers a(( o3er the country Ent#, o< Mu ti-nationa s into Indian So<t D#in( Ma#(!t The entry of mu(ti. nationa(s has changed the scenario of the soft drin1 industry 0ith a (ot of re3o(utionary changes in 9uantity' *ac1ages' *rices and other *roduct mi2es The industry is going on a stiff com*etition 5e*si 0as the first to enter the Indian soft drin1 mar1et in May /;;, 0ith an initia( in3estment of Rs C,, cores It reentered into mar1et A5e*si had its mar1eting o*erations in India during ear(y =,DsB in the name of 5e*si Foods (imited' ad4oins 3enture bet0een 5e*si Incor*oration of U s ' 0hich is ho(ding E,> of the e9uity' 3o(tas and the 5un4ab !gra Industries Cor*oration A5!ICB' each 0ith an e9uity of +E> and ?=> res*ecti3e(y It (aunched its acti3ities in a *hased manner and introduced its brands in acce*ted f(a3ors AThums u* in co(a f(a3or' 6imca 0ith (emon f(a3or' Maa@a 0ith mango f(a3or' Fanta 0ith orange f(a3our' Coca.Co(a 0ith co(a f(a3our and S*rite 0ith c(ear (ime f(a3our are 0ide(y acce*ted f(a3ours in the mar1etB under its o0n brand names as *e*si' <.U*' Mirinda' S(ice etc in different *ac1ages to attract the different consumer segments !fter its (aunch' 5e*si Com*any has estab(ished // o0n bott(ing *(ants and /C franchises bac1ed by /'C,, inde*endent sa(es' distribution ser3ing o3er ? (a1hs retai(ers' 5e*si has a +=C of e9uity in the o3era(( soft drin1 mar1et Coca.Co(a on the other hand' had re.entered into India in /;;?' by signing a strategic agreements 0ith 5ar(e E2*orts 6td' the then (eading indigenous soft drin1 com*any With this tie.u*' Coca.Co(a o3ernight *enetrated into the mar1et'

contro((ing a ma4or *art in3estment of Rs +C, crores Unti( Coca.Co(a entered the scene the business 0as gro0ing at fair(y sedate *ace of C> %ut after the entry of Co1e the gro0th rate 0as ho(d u* to /C> With the gro0th rate

@ooming into doub(e digits bott(ers ha3e been *ro*e((ed into e2*anding ca*acities Coca.Co(a reaches the consumer in a 0ho(e ne0 range of *ac1ages' such as +C,m( cans' / (tr Returnab(e g(ass bott(es and / C (tr 5ET bott(es ne0 *ac1ages a(so inc(ude +,,m( Tumb(er 0hich is a ne0 5ac1 to the mar1et Coca.Co(a recent(y' had obtained a c(earance from the cabinet in3est F<,, mi((ion ARs +'E,, croresB A0hich is three times of to The

5e*siDs

in3estmentB to set u* t0o ne0 subsidiaries cana(i@ed mar1eting main(y bee*ing u* the bott(ing

The

in3estments 0i(( a(so be and distributing and

system

To those 0ho critici@e the com*any for being s(o0 mo3ing the difference is that they 0ant to get the strategy right first' bui(d a strong foundation before mo3ing ahead The su**(y side infrastructure has a(so to be strengthened 0ith 3o(umes

reaching a critica( mass Cadbury Sch0e**es %e3erages *ri3ate (imited is the ?rd soft drin1 com*any that entered in the India mar1et It is a %ritish cong(omerate and the biggest non. co(a com*any in the 0or(d 0hich entered the co(a segment 0ith a brand ca((ed s*ort co(a in ?,, m( and 0as *riced +,> chea*er than other created soft drin1s It has tied on a(( the bott(ers co1e (eft behind in India years ago Sch0e**es c(aimed ? rd

*osition in Indian soft drin1 industry and is continuous(y stri3ing to retain its *osition through its 3ast mar1eting acti3ities

SPECIFIC PROB&EMS OF INDIAN SOFT DRINK INDUSTRY

The &o3ernment of India has considered the soft drin1 as non. essentia( !s a resu(t' the &o3ernment on the bott(ed soft drin1 (e3ied hea3y e2cise duty Today soft drin1 costs Rs < to Rs E- based on the 9ua(ity to the customers Ho0e3er' in a country (i1e India 0here E,> of the *o*u(ation e2ists be(o0 *o3erty (ine cannot afford such *rice !s a resu(t the trading acti3ity of the soft drin1s are concentrated in and around ma4or to0ns and cities 0here the *urchasing *o0er of the *eo*(e and standard of (i3ing is high &ro0th rate of this industry in India is a(so not encouraging Infact' date from the Ministry of Food 5rocessing sho0 that gro0th rate in the soft drin1 mar1et 0as the minimum in /;;= Changes in techno(ogy and consumer tasted brought about many changes in the Indian soft drin1 industry from the time of introduction of soft drin1 in India ti(( today

NEED FOR THE STUDY

The *resent study is conducted considering the fo((o0ing as*ects First(y

"isa1ha*atnam is a *ers*ecti3e of soft drin1 mar1eting in the country' 0hich is high(y *romising 0ith a (ot of *otentia(' 0hich is to be ta**ed Second(y' the

beha3iour of the target consumers are high(y 3ibrant sho0ing the *ast mo3ement in this (ife that is a(so mar1et dri3e The mar1eting has !ccom*anied to re*resentations' both forma( and informa( mar1eting Ha3ing considered one by one of both consumer and retai(er in *resent day mar1et an attem*t 0as made to study the *erce*tion of both consumers and retai(ers on the channe(s of distribution of Coca.Co(a brands in genera( and mar1et share of co1e in "isa1ha*atnam

Soft drin1 industry has got a s*ecia( *(ace in mar1eting consumer *roduct Wor(d o3er' the mar1et ri3a(ry bet0een internationa( giants (i1e Co1e and 5e*si are 0ide(y 1no0n as co(d 0ars Indian soft drin1 industry is dominated fe0 *(ayers (i1e 5ar(e drin1s etcG That 0ith the (ibera(i@ation in /;;,Ds in the Indian Economy' the com*etitors in this industry ha3e increased tremendous(y and the end consumer had got the 0ide range of chief choices among It is the time to ta1e the ste*s to im*ro3e the mar1et share of the Co1e *roducts Hence focus had (aid on its mar1eting functions (i1e channe(s of distribution

B9ECTIVES OF THE STUDY

To find out the different *roducts that is being offered by co1e though out the 0or(d

To 1no0 different ty*es of channe(s of distribution the co1e is *resent(y using for its sa(es and distribution

To understand the criteria of se(ection of distributors in Hindustan Coco Co(a %e3erages 53t 6imited

To measure the affecti3e ness of distribution channe( in achie3ing the o3era(( ob4ecti3es of Coco.Co(a

To e3a(uate the cost effecti3eness of maintaining the distribution channe(s

METHODO&OGY
The methodo(ogy fo((o0ed 0ith regard to the co((ection of information re(e3ant to the *ro4ect 0or1 entit(ed Channe(s of )istribution is main(y from t0o sources

PRIMARY
! sur3ey 0ith /,, res*ondents has been conducted in the

"isa1ha*atnam mar1et 0ith a 9uestionnaire consisting of +C 9uestions on information regarding7 )emogra*hy' *rice' ser3ice fre9uency' *referred distribution channe(s' effecti3eness of ad3ertisement' brand a0areness' *roduct features' etc '0as *re*ared and made use of The *rimary data 0as a(so co((ected from the

com*any and the customers by the *erform gi3en by the com*any

SECONDARY
Information has been co((ected through maga@ines' ad3ertisement'

ne0s*a*ers' com*any !nnua( re*orts' com*anyDs brochures' manua(s ' 4ourna(s and a(so from the 0ebsites of Hindustan Coca. Co(a %e3erages 53t 6td

DATA ANA&YSIS
! carefu( ana(ysis on obtained data has been done The data obtained is tabu(ated and conc(usions are dra0n to suggest the com*any for betterment The re*ort contains a (ist of tab(es' (ayers' abbre3iations and (ist of a**endices It a(so contains bib(iogra*hy

The first cha*ter of this re*ort contains the introduction' need of the study' sco*e' ob4ecti3es of the study' (imitations and methodo(ogy used in com*i(ing *ro4ect Ty*es of data' enumeration' sam*(e' *o*u(ation' *rimary data and secondary data are a(( c(ear(y defined in this cha*ter The second cha*ter inc(udes the industry *rofi(e It a(so contains information about the com*any The *roducts offered by co1e are gi3en in the re*ort Third cha*ter inc(udes the theoretica( frame 0or1 Fourth cha*ter' the main *art of this re*ort is ana(ysis and inter*retation !fter conducting the sur3ey through 9uestionnaire the ana(ysis of re*orts had been done This cha*ter contains tab(es' charts for each and e3ery tab(e To sho0 the *ercentage of each *arameter inter*retation is gi3en for each and e3ery tab(e %y this inter*retation the reader 1no0' ho0 the resu(ts are arri3ed at Inter*retations offer the reasons for the res*onses gi3en by res*onds Fifth cha*ter contains summary' findings and suggestions !fter ana(y@ing the data' the findings or the fina( resu(ts in the *ercentage of *o*u(ation sho0ing interest to0ards coca.co(a are e3a(uated %ased on the resu(ts' suggestions are gi3en to im*ro3e the effecti3eness of channe(s of distribution and the mar1et share of the com*any' in soft drin1 sector' etc

&IMITATIONS
Whi(e conducting the sur3ey and *roceeding in the *ro4ect the fo((o0ing (imitations 0ere encountered The study 0as on(y (imited to the "isa1ha*atnam unit of Hindustan Coca. Co(a %e3erages 53t 6td The ans0ers gi3en by the res*ondents high(y de*end on the mood and interest and thus the accuracy f(uctuates sometimes The time 0as a big constraint The duration of - Wee1s 0as a *retty short time to conduct such sur3ey There is (arge number of customers to the com*any %ut' due to (ac1 of time the sur3ey had to be restricted to /,, out(ets Ainc(uding distributors' 0hich are /= in numberB on(y Some times' the res*ondent did not co.o*erate 0hi(e ans0ering the 9uestions

CHAPTER2
T)! sc!na#io o< so<t d#in( indust#, in India

THE SCENARIO OF SOFT DRINKS INDUSTRY IN INDIA7

Which year the season started off ear(y 0ith 5e*si and Coca.Co(a introducing diet cans for the first time in India %y buying o3er a (oca( com*etitor the t0o !merican Co(a giants ha3e c(eared u* the arena and are bac1ing a(( the *o0er behind the Indian franchises of their g(obe gird(ing brands They are 3yi7 0ith each other to ca*ture the mar1et by increasing the ca*ita( base in the count if 5e*si 0i(( be in3esting Rs ?,, corers' Co1e 0i(( be *um*ing in eight times much Rs +'E,, corers The tota( in3estment is a si@e and sca(e that the Rs / - corers soft drin1s business has ne3er been before %oth *(ayers see an enormous *otentia( in this country' 0here s0igging carbonated be3erages is sti(( considered treat' 3irtua((y a (u2ury

The soft drin1 industry in India has annua( sa(es e2ceeding Rs /+',,, Crore and most of the bott(ing com*anies ha3e gro0n and e2*anded their acti3ities in the mar1et and by *(acing more and more of their soft drin1 cases in the mar1et and by im*ro3ing refrigerationDs' su**(y of e(ectric bott(e coo(ers' etc ' to retai(ers Ra*id changes in be3erages *ac1aging' taste and concentration changing the industry into a dynamic one (i1ing for non.con3entiona( foods or be3erages there is good *ossibi(ity that *erca*ita' consum*tion 0i(( go u*

Soft drin1s are a3ai(ab(e main(y in three f(a3ors' 6emon' Co(a and Orange according to estimatesH Co(a dominates the mar1et 0ith E,> mar1et share

6emon f(a3ored drin1s come second 0ith ?,> mar1et share and Orange f(a3ored drin1s third 0ith a +,> mar1et share Other f(a3ors account for the rest of the mar1et

!(so' the &o3ernment of India considers soft drin1s as non.essentia( commodity Thus' hea3y e2cise duty is (e3ied on bott(ed soft drin1 In a country (i1e India 0here more than <,> of *o*u(ation e2ists be(o0 the *o3erty (ine' the trading acti3ities of soft drin1s industry is concentrated in and around big and cities 0here the *urchasing *o0er of *eo*(e is considered to be com*arati3e(y high Conse9uent(y' by 0or(d standard' IndiaDs ca*ita( consum*tion of these ser3ing is roc1 bottom' (ess e3en than our neighbors 5a1istan and %ang(adesh

Count#, India 5a1istan %ang(adesh

P#! Ca*ita 5@@1 ?< /? , <,

Inta(! .Bott !s7 5@@6 C? ?, ? // ,

The (o0 consum*tion of soft drin1s in India may attribute to the fact the *rices of soft drin1s are inf(ated due to high e2cise duties and ta2es ! bott(er must *ay as much as ?<> of *rice *re case as e2cise duty' sa(es and turno3er ta2 ! further /,> goes into e2*enditure on (oca( ad3ertising and sa(es *romotion )istribution and trans*ort cost ta1e care of another /,>' ra0 materia( costs' concentrate sugar' citric.acid' bott(e maintenance and (abour account for another /E> This (ea3es the bott(ers a margin of an /E> and E>of this 0ou(d go into o3er. heads and interest changes' trimming do0n the margin to scrim*y E>.C> Since the retai( *rice of a bott(e of a +,,m( soft drin1 ranges bet0een Rs C to ='C,, m( soft

drin1 ranges bet0een Rs ; to /, a bott(ing o*eration is 3ariab(e on(y 0ith (arge 3o(umes Ho0e3er' the co(a giants fee( that *er ca*ita consum*tion can on(y go u* and u* !s incomes' so do (ife sty(es' a *attern they ha3e seen in many of the /;C countries they se(( their uni3ersa( *roducts in The fi@@y drin1s industry (ongs in a /,> gro0th on an a3erage 0ith estimated sa(es of /E, mi((ions cases Aone case +E bott(es of ?,, m( eachB These are heady gro0th fires the industry 0as both sur*rise by and un*re*ared for %ott(es are disa**earing from the she(3es faster then they can be re*(aced In *ea1 season' they found themse(3es short of ca*acity E3en through they 0ere 0or1ing three shifts a day that is round the c(oc1 *roduction They had to turn around their truc1s faster to satisfy the great Indian thirst Industry sources *ut do0n the main reason for gro0th as high com*etiti3e acti3ity Certain(y' unti( Coca.Co(a entered the scene' the business 0as gro0ing at a fair(y *ace of C> The increase in the number of cases ref(ects higher demand' but dose not 9uit accurate(y measure the fact that so many more (iters of the fi@@y stuff is being so(d' but bott(e si@es too been a**eared form +C,m( to ?,,m( 0ith gro0th rate @ooming into doub(e digits' bott(ers ha3e been *ro*e((ed into e2*anding ca*acities

With their big time *ans' the MNCs ha3e changed the face this business' (ong dominated by sma(( time business men The co(a ma1ers 0ith their ambitious targets and in order to reach them ha3e to bui(d ca*acity' infrastructure and a(so ma1e their bott(e more a3ai(ab(e and affordab(e There are ?' ,,',,, retai(ers stoc1ing soft drin1 in India !(so soft drin1s 0hich retai( any 0here bet0een Rs ; ,, and /, ,, are e2*ensi3e 0hen measured against *urchasing *o0er !ccording to our study' it ta1es an India / C hours of 0or1 to be ab(e buy a bott(e' in other countries the norm being

on(y C minutes !s the soft drin1 manufactures concur their strategies' 1ee*ing an eye on each other' the c(ear 0inner of the soft drin1s is so fat the consumer

Mod!#n Manu<actu#!s/
The )e(hi based *ub(ic sector under ta1ing (aunched co(a drin1 under brand name of 8<<: Adoub(e se3enB in /;<< It has (aunched Orange and 6emon F(a3ors

Coca-Co a Pa# !
Coca.Co(a E2*ort Cor*oration 0hich (eft India in /;<< has re.entered India soft drin1 It has tied u* 0ith *ar(e grou* 0hich o0ns Thums.U*' 6imca' Maa@a' Citra and &o(d S*ort Coca.co(a a(ong 0ith its origina( brands Co1e' Fanta is maintaining e3en the 5er(eDs brands of soft drin1s

P!*si Foods .*7 &td/

5e*si' 0hich 0as in India from /;C=. =/' had (eft this country' as its *roducts 0ere not acce*tab(e to the Indian *ub(ic %ut in /;;;, it entered the Indian mar1eting co((aboration 0ith 5un4ab' !gro industries cor*oration A5!ICB and "o(tas 5e*si *roduces Co(a' Mango' Orange' C(ear 6emon and C(oudy f(a3ors under the brand names of 6ehar 5e*si S(ice' Mirinda' 6ehar' <U* and teem res*ecti3e(y Recent(y 5e*si Com*any has ac9uire the duc1s com*any of %ombay

Cad>u#, Sc)A!**!s/
Sch0e**es has (aunched ? brands in /;;C four months and in )e(hi' their Orange crush has *ic1ed u* a ?,> mar1et share against Co1eDs fanta' *e*si and Mirinds The other t0o brands at Canada %ry and sch0e**e Tonic 0ater Sun1ist This %ritish be3erage gains a(so has sta1e in )r 5e**erDs

Bac($#ound/
Non.a(coho(ic soft drin1 be3erage mar1et can be di3ided into fruit drin1s and soft drin1s Soft drin1s can be further di3ided into carbonated and non.carbonated drin1s Co(a' 6emon and Oranges are carbonated drin1s Who(e Mango )rin1s com under category The soft drin1s mar1et ti(( ear(y /;;,Ds 0as in hands of domestic *(ayers (i1e Cam*a' Thums.u*' 6imca etcG' but 0ith o*ening u* of economy and coming of MNC *(ayers *e*si and Co1e the mar1et has come tota((y under their contro( Whi(e Wor(d Wide co1e is the (eader in carbonated drin1s mar1et in India' it is 5e*si 0hich scores o3er co1e but this difference is fast decreasing Acourtesy huge !d.s*ending by both the *(ayerB

5e*si entered in India /;;? 5e*si has been targeting in *roducts to0ards youth and it has struc1 right chord 0ith the mar1et and sa(es ha3e been doing 0e(( by stic1ing to this youth band 0agon Co1e on the other hand strugg(ed initia((y in estab(ishing it se(f in the mar1et In a s*an of <years of it o*erations in the country it changed its CEO four times but fina((y they seen to ha3e started understanding the *u(se of Indian consum*tion Fountains a(so dis*ense them in dis*osab(e containers

S!$+!ntation/
The soft drin1 mar1et can be segmented as the basis of *(ace of consum*tion or on the basis of ty*e of *roducts The segmentation as the basis of *(ace of consum*tion di3ides into t0o *arts7

On.*remise -,> of the consum*tion of soft drin1s is on *remise i e ' restaurants' rai(0ay stations' cinema etc !t home the rest +,> of the mar1et com*romises of the soft drin1 *urchased for consum*tion at home The mar1et channe( can be segmented on the basis of ty*es of *roducts into co(a *roducts an non.co(a *roducts Co(a *roducts account for near(y =/.=+> of the tota( soft drin1s mar1et The brands that fa(( in this category are Coca.Co(a' Thums U*' )iet Co1e' 5e*si and )iet 5e*si etc Non.co(a segment 0hich constitutes ?=> can be di3ided into E categories based on the ty*e of f(a3ors a3ai(ab(e name(y7 O#an$!' c oud, &i+!n' C !a# &i+!' Man$o

O#an$!/
F(a3our based soft drin1s constitute around /<>of the mar1et The segment is (arge(y dominated by nationa( brands (i1e Fanta of Coca.co(a and Mirinda orange of 5e*si Co ' 0hich co((ecti3e(y from /C> of the mar1et rest of the mar1et is in hands of sma((er brands (i1e ICrushD Aear(ier of Cadbury Sch0e**es and no0 of coca.co(aB' I&o(d S*ortD etc '

C oud, &i+!/
F(a3our constitutes /E> of the mar1et and (arge(y dominated by 6imca of coca.co(a and Mirinda 6emaon of 5e*si co 6imca id the mar1et (eader 0ith around <,.<C> of the mar1et fo((o0ed by Miranda 6emon

C !a# &i+!/
This segment of the mar1et 0itnessed good gro0th initia((y 0ith a(( the *(ayers (aunching their brands in the segment %ut no0 the gro0th in the segment has s(o0ed do0n The brands a3ai(ab(e in this segment are s*rite of coca.co(a' <U* of 5e*si and Canada dry AEar(ier of Cadbury Sch0e**es and no0 of coca.co(aB The segment constitutes ?>of the tots soft drin1s mar1et

Man$o/
This f(a3or segment constitutes +> of the tota( soft drin1s mar1et and it direct(y com*etes 0ith mango based fruit drin1s (i1e frooti The (eading brands in this segment are Maa@a of coca.co(a' Mango Aear(ier of )u1es no0 5e*si Co B and S(ice of 5e*si Co there is 3ery thin1 (ine of difference bet0een c(ear c(oudy 6ime The most ob3ious features is that C(ear 6ime has to be bott(ed in green bott(es are sun(ight harms the drin1 and changes the taste There are some sma(( (oca( brands at big *(ayers ACoco.co(a' 5e*siB or they command a 3ery sma((.(ess then ?> of the tota( mar1et in their res*ecti3e areas

Soft drin1 mar1et si@e for F$ +,,E 0as around +<, mn cases A-?;,mn bott(esB The mar1et' 0hich 0as 0itnessing C.=>gro0th in the ear(y ;,Ds and e3en s(o0er gro0th at around +.?>in (ate -,Ds 5resent(y the mar1et gro0th has s(o0ed do0n rate <.-> *er annum com*ared to ++>gro0th rate in the *re3ious year The mar1et si@e of F$+,,E is e2*ected to be -;/, mn bott(es The mar1et gro0th of ++> ti(( (ast year has got stif(ed due to high e2cise duty of E,> (eading to higher *rice of the end *roduct

,!a#s
/;;/.;+ /;;+.;? /;;;.;E /;;E.;C /;;C.;= /;;=.;< /;;<.;/;;;.,, +,,,.,/ +,,/.,+ +,,+.,? +,,?.,E +,,E.,C +,,C.,= +,,=.,< +,,<.,-

Bott !s .+n7
+?,, +-,, ?,,, ?+E, EEC, E;+, C=<, =E-, <,,, <-E, -?;, -;/, ;?E, ;<C, /,+,, /,=C,

Ma#(!t C)a#act!#istics/
The soft drin1 mar1et is high(y s1e0ed in terms of *(aces of consum*tion' in terms of regiona( distribution of soft drin1 f(a3ors as 0e(( as in terms of SJUS Whi(e -,>of the consum*tion in im*u(se based outside home +,> come from consum*tion at home This trend is s(o0(y changing 0ith increase in occasion bed sa(es Change (ife sty(e' increasing urbani@ation and im*act of (ibera(i@ation has s(o0(y and gradua((y stated mo3ing the mar1et from im*osed to occasion (ed and has refrigeration (ed consum*tion

In southern states besides sa(es through bars Western mar1ets ha3e *reference 0ards mango f(a3ored drin1s )iet co1e *resent(y constitutes 4ust , <> of the si@e Carbonated be3erage mar1et

In terms of SJUS the mar1et is s1e0ed to0ards ?,, m( 0hich constitutes around -,.-C> of the mar1et' rest is the from of other *ac1' si@e but 0ith increasing occasion (ed and home refrigeration (ed consum*tion the sa(es of bigger SJUS (i1e more than / (tr 5ac1 si@e has increased this has (ed to increase in contribution from 5ET bott(e sa(es to /C> of the tota( turno3er in F$,,' and most of these 5ET bott(es sa(es' u* to <C> are in urban areas

!nother s1e0 ness is in terms of the time of the year 0hen the consum*tion ta1es *(aces Most of the sa(es of the drin1s ta1e *(ace during summers 0hi(e 4ust C. => of sa(es ta1e *(ace in 0inners In summers the high season (asts <,.<C days 0hich contribution more than C,> of the tota( year(y sa(es

The distribution net0or1 of Coca.co(a had = C (a1es out(ets across the country in F$,, 0hich the com*any is *(anning to increase to - (a1es by F$,/ On the other hand 5e*si CoDs distribution net0or1 had = (a1es out(ets across the country during F$,, 0hich it is *(anning to increase to < C (a1es by F$,/

Ma-o# P a,!# and Ma#(!t S)a#!s/

The soft drin1 mar1et in India is dominated by the t0o g(oba( ma4or coca. co(a and 5e*si Coca.Co(a' 0hich had 0inded u* its India o*eration during the *roduction of the FER! regime' reentered India /= years (ater in /;;? Coca.Co(a ac9uired a ma4or chun1 of the soft drin1 mar1ed by buying out (oca( brands Thums. U*' 6imca and &o(d S*ot from 5ar(e %e3erages Coca.Co(a had a(so ac9uired Cadbury sche0ee*s soft drin1s crush' Canada )ry and S*ort Co(a in ear(y /;;; and ne0 recent(y in Oct +,,, it ac9uired distribution rights of these brands from IF% !gro (imited

5e*si a(though started a cou*(e of years beefier Coca.Co(a in /;;/ has a (o0er mar1et share today It has bought o3er Mumbai based )u1eDs range of soft drin1 brands %oth the Co(a manufacturing come u* 0ith their o0n mar1er share figures and c(ime to ha3e increased their share Recent(y in !ugust +,,, 5e*si c(imes to ha3e increased its mar1et share for first fi3e months of ca(endar year +,,,' to E;>from ear(ier (e3e(s of E< ?> Whi(e co1e c(aimed to ha3e increased is in the mar1et to C<>in the same *eriod from CC-> in the corres*onding *eriod is year Co1e figures are based on OR&Ds date 0hi(e that of 5e*si are based on IMR& data

Ma#(!t S)a#! .in B7/

IMRB 4@B 42B

B#and Coca-Co a P!*si

MS .O#$7 B 3=B 45B

Ad"anta$!s and &i+itations o< F#anc)is! N!tAo#(

Ad"anta$!s/
Reduced in3estment (e3e(s in manufacturing e9ui*ments Sa3ings on management time Regu(ar su**(y of com*onents Reduced interfacing and dea(ing 0ith (abors

&i+itations/
6arge 3o(umes Financia( su**ort Kua(ity

Manu<actu#in$ *#oc!ss/
Soft drin1s may be carbonated or non.carbonated For carbonated drin1s carbonation forms a critica( *art of the *rocess In carbonation carbon dio2ide in the 0ater' 0hich is used in manufacturing the drin1L Norma((y the ingredients in soft drin1s are as fo((o0s acidu(ate Acrifnic' ma(ic or *hos*horic acidB' s0eetener' f(a3or and *reser3ati3e

R!tai !#Cs *!#c!*tion/

! sur3ey 0as conducted to study the retai(erDs 3ie0 of the *resent mar1et' future trend and the consumer beha3ior *atterns The bindings of the sur3ey are as fo((o0s

Retai(ers stated that the consumers are (oya( to the *articu(ar segment of the soft drin1 i e Co(a' Orange' or 6emon %ut as far the (oya(ty for the brands in each segment is concerned' it is nit 3ery significant E?> of the retai(ers sur3eyed to(d that in soft drin1s ad3ertising is the 1ey com*onent in drin1ing sa(es Whi(e ?+> stated *romotiona( schemes and +,> brand (oya(ty as the reasons !s consumers are not 3ery brand (oya( 0here the *urchase of soft drin1s concerned' the retai(er *ush becomes a critica( issue They usua((y se(( the *roduct in 0hich they get the ma2imum benefit For this' the com*anies try to offer them higher margins Whi(e distributors get margin of Rs -.; *re crate A/ crate M +E bott(esB at ?.E> MR5' retai(ers are gi3en a margin of /,./+F of MR5 The retai(ers not ha**y 0ith this' as the cost of refrigeration is 3ery high for soft drin1s' to o3er come this *rob(em the com*anies 3ise.coo(ers schemes to their main retai(ers

CHAPTER3
Co+*an, *#o<i !

VISAKHAPATNAM P&ANTCS BRIEF HISTORY/

BHARAT COCA-CO&A BOTT&AING SOUTHEAST P"t% &td% .VISAKHAPATNAM7/
The organi@ation study 0as conducted at %harat Coca.Co(a %ott(ing southeast 53t 6tdH 0hich came into being 0hen "%C industries A0hich 0ere a franchised bott(ing unitB 0as ac9uired by Coca.Co(a India on /, th Oct' /;;- This unit ser3es the districts of "isa1ha*atnam' "i@ianagaram and *arts of Orissa state

The main *(ant is situated at Manchu1onda &ardena 0hi(e the sma((er Maa@a unit is situated /1m do0n the road The *(ant *roduces ?,,m( bott(es of Co1e' Thums U*' Fanta and 6imca and their canisters 0hi(e the Maa@a unit *roduces the +C, m( fruit drin1

!fter ac9uiring the unit' the com*any is tried to mou(d the organi@ation so that it becomes consistent 0ith the Coca.Co(a 0or1 cu(ture The to* (e3e( management had a(ready bee *rofessiona(i@ed and change 0as e2*ected at the midd(e (e3e( a(so ! tota( reorgani@ation 0as around the corner

%harat Coca.Co(a bott(ing southeast 53t 6td is headed by an !rea genera( manager The 3arious de*artments are the finance de*artments' the sa(es de*artment' the *(ant' the 9ua(ity !ssurance de*artment and the *ersonne( de*artment

It a(( started in the year /;=< 0hen the great 3isionary Mr M " " S Murthi started his sma(( business of se((ing the soft drin1s in the 3i@ag to0n It 0as started as a sma(( unit in the industria( estate 0ith as many as of em*(oyees' they' being his *artners !s the days 0ent by the same *(ant 0as made into big *(ant 0ith the he(* of go3ernment and ot 0as ca((ed the 8"isa1ha %ott(ing Com*any: This constituted a sma(( number of em*(oyees 0ho 0ere the (oya(ists of the great 3isionary !(( this has further im*ro3ed 0ith the he(* of them ta1ing u* the tas1 of becoming the so(e franchise of the *ar(e *roducts Then come to be ca((ed as the &o(d S*ort Com*any They 0ere manufacturing a(( *roducts of the *ar(e and they 0ere the so(e distributions of the greatest brands (i1e Thums U*' 6imca' Co1e came in touch 0ith "%C The dea( 0as struc1 and it 0as ac9uired by the Coca.Co(a in the year /;;From then on' it becomes a so(e authority to the *ro*erty *f "%C and since then it 0as o*erating as a fu((y o0ned com*any This *(ant o*erates 0ith /,+ staff' /, managers' /=C *(at 0or1ers' +C, contract 0or1ers in *ee1 season and /-C./;, contract 0or1ers in other season The *(an is (ocated at the *ictures9ue (ocation of Manchu1onda &ardens and it runs to around ? acres of (and The *(ant (ayout de*icts the e2tent of care ta1en by the management to ha3e a 3ery *o((ution free area and an en4oyab(e area to 0or1 in the entire *(ant is di3ided into four segments

T)!, a#!/ / + ? E Water treatment *(ant Syru* *re*aration *(ant Carbon dio2ide *re*aration *(ant !dministration

THE P&ANT/
The entire *rocess can be sim*(ified and *resented as be(o0

RaA S,#u* Roo+/

The ra0 syru* is obtained by mining 0ater and sugar at -C degrees centigrade This is done in a (arge cy(indrica( tan1 of = J6 ca*acity

R!ad, S,#u* Roo+/

The ready syru* is obtained by agitating the essence A0hi(e is 1e*t in an essence mi2 tan1B 0ith the ra0 syru* The essence is im*orted from !t(anta and its formu(ation is a tight(y 1e*t secret

CIP Roo+/
CI5 stands for c(ean in *oint There are t0o cy(indrica( tan1s of ca*acity + J6 each One is a hot caustic tan1 maintained at =, degrees centigrade and the other a hot 0ater tan1 1e*t at -, degree centigrade These so(utions are used for c(eaning the ra0 syru* and ready syru* tan1s The tem*erature' 0aterNso(ution (e3e(' etc can be maintained and contro((ed by the automated CI5 system

%efore *roduction start each day' the ra0 syru* tan1 and ready syru* tan1 is c(eaned in ? ste*s

/ Coo( 0ater rinsing + Hot 0ater circu(ation ? Coo( 0ater rinsing

C min /, min Cmin

at the end of the day' the tan1s ate again c(eaned in C ste*s

/ Coo( 0ater rinsing + Hot 0ater circu(ation ? Coo( 0ater rinsing E Hot 0ater circu(ation C Coo( 0ater rinsing

C min /, min /, min /C min /, min

Bott ! 8as)!#/
This is a huge automated machine 0ith fi3e com*artments / + ? E C 5re.rinse com*artment 5re.0ash com*artment Soa1er com*artment Hydro com*artment 5re.fina( fresh com*artment

The bott(e that return from the mar1et ate initia((y chec1ed for damages and crac1s If found fit' they are *ut in the bott(e 0asher 0here they are thorough(y c(eaned It the goes to the testing area 0here forma( and bottom testing is done The bott(es are chec1ed for faded (abe(s' chi**ed mouth' crac1s due to therma( shoc1' bruises due to 0ashing residua( (i9uid from 0ashing and other foreign debris

Fi !# and Pa#a +iD Mac)in!/

The ready syru* reaches the 5ara mi2 machines 0here it is coo(ed by the refrigerant ammonia The so(ution is carbonated and sent to the fi((er machine The fi((er machine fi((s the bott(e and ca*s them at the rate of ?,, bott(es *er min The bott(es are code using by a coding machine 0here the *rice' batch and date of manufacturing is im*rinted The fi((ed bott(es are fina((y chec1ed for (oose cro0ns' rising bubb(es' crac1s and foreign *artic(es' the (e3e(s of the (i9uid etc

The fi((ed bott(es are shifted to the godo0n 0hich has tota( ca*acity of ?,',,, crates !t any time the godo0n 0i(( ha3e a stoc1 of +,',,, to +C',,, crates

OTHER SECTIONS/
G!n!#ato# Roo+/
The high *o0er generators of +C, J"! and /+C J"! are used for *ro3iding energy

C)i in$ P ant/

It su**(ies ammonia 0hich acts as the refrigerant

8at!# t#!at+!nt P ant/

Water is obtained from *i*e(ines and bore 0e((s This 0ater is chemica((y treated

Boi !# P ant/
It *ro3ides steam to the bott(e 0asher unit' ra0 syru* room and ready syru* room

PRODUCTION/
The *roduction de*artment is headed by a *(ant manager 0ho re*orts direct(y the !rea &enera( Manager A!SMB Regarding financia( matters' he interacts 0ith the FM The *(ant manager interacts 0ith the !&M and the FM on a dai(y basis %e(o0 *(ant manager there is )e*uty Manager AInstrumentation and *roductionB In the absence of the *(ant manager' the )e*uty Manager ta1es change There are + !ssistant Manager A5romotionB one for each shift and t0o !ssistant Manager Mechanica( AEnggmaintenanceB One engineer is for the inside boundary (imits i e for the uti(ites (i1e generator room' boi(er Water treatment *(ant and the Maa@a unit 0hich is (ocated at some distance These E *eo*(e re*ort to the *(ant Manager There are //- 0or1ers in the *(ant 0hich inc(udes /E 0omen' /+ *re3enti3e maintenance staff and E= 0or1ers in each shift Each shift re9uires CE *eo*(e The ga* of - *eo*(e ACE.E=B is fi((ed u* by di3erting the 0omen A- noB' 0ho are other0ise engaged in house 1ee*ing into the *roduction (ine

)e*ending on the demand' the com*any o*erates ? ty*es shifts &enera( shift - !M to C 5M + shifts = !M to + 5M and + 5M to /, 5M +E hours = !M to = 5M and = 5M to =!M

)uring the genera( shift' the man*o0er re9uirement is on(y CE 0hi(e the com*any has ;+ heads Women are em*(oyed on(y in the genera( shift A- am to C *mB or the ! shift A= am to + *mB In th other shifts' casua( (aborers are used

In the Maa@a *(ant' +E heads are re9uired )uring the genera( shift some 0or1ers are trans*orted from the main *(ant and some casua( (aborers are a(so em*(oyed The 0or1ers re*ort matters as and 0hen they arise to the !ssistant Manager A*(ant su*er3isorB There is not much interaction bet0een the *(ant manager and his 0or1ers direct(y Ho0e3er the channe( is o*en if the need arises

For any maintenance 0or1 that arises sudden(y' the concerned is informed ! 0or1 order form is fi((ed by the su*er3isor c(ear(y stating the *rob(em' the data and the *erson 0ho has been assigned the tas1 When the 0or1 is com*(eted' the su*er3isor signs stating 0hether the 4ob has been satisfactory done or not ! *re3enti3e maintenance schedu(e is *re*ared for a(( the e9ui*ments for gi3en year Charts indicating the 0or1 to be done and the 0or1 a(ready com*(eted are dis*(ayed *rominent(y in the office Wee1(y maintenance is done on Sundays 0hen there is no *roduction When the *(ant is shut do0n for maintenance' other de*artments are informed in ad3ance es*ecia((y the sa(es de*artment !dditiona( stoc1 in the godo0n is maintained If the 0or1 ta1es an undu(y (ong time to finish' it may resu(t in shortage of any one f(a3or during the months of May and #une The *(ant Manager gets the 0ee1(y sa(es *(an from the sa(es de*artments ad3ance He a(so 1ee*s a 0atch on the godo0n stoc1 (e3e( e3ery morning The *(ant has sur*(us staff There in no forma( basis He suggests 0ays to im*ro3e *erformance es*ecia((y 0hen the 9ua(ity is affected The 0or1ers are not unioni@ed ! dai(y *roduction cum dai(y time re*ort is sent to the !rea &enera( Manager A!SMB

The *resent Coca.Co(a unit has so*histicated e9ui*mentDs that can *roduce =,, bott(es *er minute From this unit Coca.Co(a *roducts *roduced them7 Co1e Fanta S*rit 6imca Maa@a Thums U* Jin(ey Soda )iet Co1e The abo3e *roducts are su**(ied to coasta( )istrict' (i1e "isa1ha*atanam' "i@ianagaram and Sri1a1u(am' and a(so its *roducts are su**(ied to sone of the )istricts of Orissa

TOTA& COST CONTRO& AND EUA&ITY SYSTEMS/

53 PO&ICICES PROGRAMME/
This has been de3ised' ha3ing three *rinci*(es in mind These are7 Symbo( of 9ua(ity *rinci*(e / + ? 5O6IC$ /7 5hysica( faci(ities and *eo*(e 5O6IC$ +7 !d3ertising and Mar1et *(ace 5O6IC$ information 5O6IC$ E7 5re3ent unauthori@ed use of trademar1ed materia( 5O6IC$ C7 !uditing and monitoring *rograms 5O6IC$ =7 C(ean and hygienic conditions 5O6IC$ <7 Standards and s*ecification 5O6IC$ -7 Storage' hand(ing' and distribution of ingredients' fina( *roducts and *ac1ing materia(s 5O6IC$ ;7 )ocumenting *o(icies' standards and *rocedures 5O6IC$ /,7 O*erationa( fitness 5O6IC$ //7 %usiness goa(s and ob4ecti3es 5O6IC$ /+7 Customers and consumers *rogram 5O6IC$ /?7 5roduct age 5O6IC$ /E7 Com*(iance 0ith food (a0s and regu(atory re9uirements ?7 5rotection of *roducts' ingredients' *rocesses and Customer and consumer satisfaction *rinci*(e Res*onsib(e citi@en of the 0or(d

ORGANIFATION CHART/

&M

SM

!SM

!SM

ST6

ST6

M)E

M)ENSMN)SM

&M7 &enera( Manager SM7 Sa(es Manager !SM7 !rea sa(es Manger S6T7 sa(es Team 6eader M)E7 Mar1et de3e(o*ers

FUNCTIONA& DEPARTMENTS
Management *rocess consists of se3era( functions and a distinction shou(d be maintained bet0een management functions A*(anning' organi@ing' staffing' directing and contro((ingB and organi@ation functions differ from organi@ation to organi@ation de*ending u*on their nature' 0hi(e the functions of the manager are common to a(( Thus' a manager may be *ut in *roduction function' mar1eting or finance or HR function but he com*(etes the acti3ities of these functions through a(( the manageria( functions These organi@ationa( functions are ca((ed functiona( areas of management

In Hindustan COC!.CO6! %E"ER!&ES 5"T (td' there are in a(( C de*artments (oo1ing after each of the functiona( area of the organi@ation They inc(ude7

5% PRODUCTION DEPARTMENT/
This de*artment of the organi@ation is norma((y 1e*t under the contro( of the *roduction manager' Mr M " J N cho0der 0ho is res*onsib(e for the *erformance of the entire re(ated acti3ities The functions of these de*artments inc(ude7

PURCHASING/
This is re(ated 0ith the *urchase of 3arious things re9uired by the organi@ation and managing trans*ortation etc' these sections function 0ith t0o *eo*(e inc(uding the *urchase in charge 0hich re*orts to the FM The *(ant informs the stores of the re9uirements 0ho in turn ma1e a *urchase re9uest to the *urchase de*artment E3ery *urchase matter 0hether concerning the *(ant or office is hand(ed by the *urchase de*artment

MATERIA&S MANAGEMENT7
The sub area dea(s 0ith the strong of materia(s' materia( contro(' and issuing of materia(s to de*artment 0here these are needed This 0or1s in c(ose co.ordination 0ith *urchase management There is a store in.charge and four other *eo*(e to assist him !(( materia(s for *roduction are under for *roductions are under the stores in charge once they enter the com*any *remises This inc(ude sugar' essences' cro0n etc

The stores de*artment re*orts to the finance manager and dai(y re*orts are sent to him Materia(s are stoc1ed in accordance 0ith the *roduction schedu(e and targets

The shi**ing de*artment functions under the shi**ing in charge 0ho notes the fu(( *osition in godo0n em*tyH *osition' fu(( mo3ement and em*ty mo3ement This unit re*orts to the FM

+ EUA&ITY ASSURANCE DEPARTMENT

The 9ua(ity assurance de*artment is headed by a de*uty manager In addition to him there are < chemists The de*uty manager re*orts to the !&M

The de*artment test and contro(s the 9ua(ity of 0ater' caustic so(ution and the fina( be3erage The fina( be3erage is tested for gas and bric1s Ai e the sugar contentB

Sam*(es are ta1en e3ery ha(f an hour !ny de3iation from the s*ecified standards is re*orted and rectified immediate(y In the micro testing (ab' the 0ater and be3erage is tested for contamination If any indication of contamination is found out' the K! de*artment has the right to sto* *roduction immediate(y In the genera( (ab The *roducts are tested for f(a3or and freshness In addition to this' the de*artment does a she(f test C bott(es are co((ected *er day and they are 1e*t in the she(f for a *eriod of ? months 6ater' they are tested !ny com*(aints from the mar1et are *rom*t(y attended to The batch number and months is noted !nd a corres*onding sam*(e is tested from the she(f !ny com*(aint from the mar1et is recei3ed %y the sa(es team 0ho in turn informs the K! de*artment One chemist is In charge of s*ot chec1ing of fountains The de*uty genera( manager or any of his subordinates in the K! de*artment ha3e the right to sto* *roduction and order a steri(i@ation *rocess for the entire *(ant They can e3en by*ass the *(ant manager in this regard The de*artment sends dai(y re*orts to the !&M and the *(ant manager In case of any urgent need' he meets the !&M *ersona((y and sorts out this issue

? MARKETING DEPARTMENT/
This de*artment of the organi@ation in3o(3es the distribution of organi@ationDs *roducts This re9uires a number of ste*s and can be di3ided into fo((o0ing categories The mar1eting de*artment of Hindustan coca.co(a be3erages *3t (td (oo1s into 3arious as*ects (i1e7

Ad"!#tisin$/ This sub.area dea(s 0ith ad3ertising of *roduct gi3ing about

the *roducts to res*ecti3e buyers and inc(uding them to *urchase the *roducts

Ma#(!tin$ #!s!a#c)/ It is re(ated 0ith the systematic co((ection'

recording' and ana(y@ing of data in re(ation to the mar1eting of goods and ser3ices This is main(y done by the sa(es e2ecuti3es of the com*any

Sa !s D!*a#t+!nt/ sa(es management in3o(3es management efforts

directed to0ards the mo3ement of *roducts and ser3ices from *roducts to consumers The sa(es manager of Coca.Co(a is Mr 5remed Nair The sa(es de*artment has a *erson is in charge of city sa(es 0hi(e the other are for district and Orrisa sa(es !(( of them re*ort to the !&M direct(y 0ho interact 0ith the sa(e de*artment on a dai(y basis and 3irtua((y (eads the team

Dist#ict Sa !s/
In addition to the sa(es manager' there is a de*uty sa(es manager' four assistant sa(es manager and be(o0 them t0o sa(es men each Each distribution has a target 0hich is fi2ed by the sa(es manager in consu(tation 0ith the distributor From the distributor' it reaches the retai(er out(et The com*any sa(es force he(*s the retai(ers and distributors achie3e their targets through *romotions and other incenti3es

The sa(e force in far off (ocations re*ort to the sa(es manager once a 0ee1 %ased on their re*orts' ne0 incenti3e schemes and offers are made The *ri3ies 0ee1s *erformance is e3a(uated and targets for the ne2t 0ee1 are discussed

Cit, Sa !s/
Under the sa(es manager AcityB' there are /? su*er3isory staff and staff and //? fie(d force The com*any has no distributions in the city of "isa1ha*atnam They direct(y su**(y to the retai(ers There are t0enty routs 0ith a truc1 co3ering each rout Each truc1 is accom*anied by a sa(es man and t0o sa(es he(*ers There is a sa(es officer for e3ery t0o routs He mo3es around on a bi1e and sees that a(( out(ets are co3ered !ny urgent message is communicated to the sa(es force though *agers There are a**ro2imate(y +C,, out(ets in 3i@ag city In (oo* areas 0here the com*any truc1 canDt go' a fat dea(er is a**ointed He su**(ies to these areas and gets about C> commissions %ott(es and crates ate *ro3ided to a retai(er after a certain de*osit is *aid In *ea1 season 0hen there is e2cess demand' crates are a(so *ro3ided on (one This doesDt in3o(e money transactions and retai(er many ta1e /, crates on (one' 0hich he 0i(( return (ater Coo(ers ate insta((ed at retai( out(ets de*ending on the retai(erDs re9uirement and sa(es 3o(ume The sa(es mend on his 3isit sees to it that the coo(ers ate *ro*er(y Maintained any serious *rob(em is rectified by the ser3ice engineers 0ho are on a Contract 0ith the com*any Targets are fi2ed and the sa(es men and sa(es he(*er get incenti3es for achie3ing and e2ceeding the targets on returning to the sa(es de*ot' he submits the (oad sheets' the cash sa(es in3oice cash detai(s form fand the sett(ement sheet

The sa(es Manager interacts 0ith his sa(es team in the de*ot e3ery morning 0here the (atest mar1et situation is discussed the SM does not hand o3er charge to any one *erson during his absence The !&M manages the situation Recruitment and se(ection to this de*artment is done by the *ersonne( de*artment There is no regu(ar training *rogram find the de*artment is 0e(( staffed !d3ertising and merchandising is hand(ed by a *erson' 0ho re*orts to the SM The budget is fi2ed at %anga(ore This is s*(it u* and a((ocated to different de*artments The art 0or1' the (ocation' the ty,*e of dis*(ay etc is decided by the ad3ertising in charge The medium used inc(ude cano*y g(o0 signs' hoardings' *aintings etc the com*any *ro3ides for e(ectricity charges in se(ect out(ets

Financ! and Accountin$ D!*a#t+!nt

The finance de*artment is headed buy a finance managerN this is a 3ery *o0erfu( *ost in the com*any and the finance manager is the second in command of the unit He re*orts to the CFO for functiona( matters 0ho is based in %anga(ore and to the (oca( !HM for administrati3e matters The entire *(ant and o*erations 1ee* him abreast of their dai(y functioning 0hi(e the !&M main(y attends to the sa(es function The finance de*artment can be broad(y segmented into t0o The accounting sections and the *ayab(eO recei3ab(es i e the bu(1 of 0or1ing ca*ita( In addition to this' the sections (i1e shi**ing stores' *urchase' administrations and ta2es re*ort to the FM The annua( budget is *re*ared at %anga(ore The FM ma1es a((ocation for the different de*artments in consu(tation 0ith the de*artmentDs heads

This de*artment of Hindustan Coca.Co(a %e3erage 53t 6td dea(s 0ith the record 1ee*ing of 3arious transactions and management of financia( resources It is headed by Mr Summit )ey It dea(s 0ithH

Financia Accountin$/ It re(ates to record 1ee*ing of 3arious

transactions' their c(assification' and *ro*ortion of 3arious statements to sho0 the 0or1ing of resu(ts and financia( *osition of the organi@ation

Mana$!+!nt Accountin$/ It dea(s 0ith the ana(ysis and

inter*retation of financia( records so that the management can ta1e certain decisions

In"!st+!nt Mana$!+!nt/ It ta1es care of ho0 the financia(

resource can be a**(ied to 3arious a(timeter

TaDation/ This as*ect dea(s 0ith the management of 3arious direct'

indirect ta2es 0hich the organi@ation has to *ay

R!s!a#c) G D!"! o*+!nt/

This de*artment of the organi@ation dea(s 0ith the RP) of 3arious drin1s in Coca.Co(a The ob4ecti3e here is to bring refinement in the e2isting *roduct (ine There is a Kua(ity !ssurance Manager' 0ho ta1es care of the 9ua(ity of drin1s' bott(es and bott(ing of the drin1

P!#sonn! D!*a#t+!nt/
The *ersonne( de*artment is headed by a manager.*ersonne( and (ega( There is a de*uty manager and three accounts re*orting to the manager The de*artment hand(es a(( administrati3e and (ega( 0or1s Matters (i1e recruitment' se(ection' 0age structure etc' are decided at %anga(ore' 6ea3e for the staff is sanctioned by the res*ecti3e de*artment heads The de*artment conducts training *rograms in com*uters and s*o1en Eng(ish so as to better e9ui* its *eo*(e to hand(e the change the organi@ation is under going It re*orts to the FM and the !&M on a dai(y basis This de*artment at Hindustan Coca.Co(a %e3erages 53t 6td dea(s 0ith the management of Human Resource in the organi@ation It is genera((y headed by a HR manager' but in Coca.Co(a *(ant of "isa1ha*atnam' there in no HR manager' but instead there is team (eader Mr Ra4esh Jumar' 0ho (oo1s after a(( the HR acti3ities in the organi@ation It inc(udes the fo((o0ing areas

Recruitment P Se(ection7 These dea(s 0ith hiring and em*(oying in the organi@ation Sometimes' es*ecia((y in summer 0hen the demand for the drin1 is high' the com*any recruits many sho* f(oor em*(oyees on tem*orary basis Training P )e3e(o*ment7 Training and )e3e(o*ment dea(s 0ith *rocess of ma1ing an em*(oyee in the organi@ation to be more effecti3e Wage P Sa(ary !dministration7 These are re(ated 0ith 0age and sa(ary sur3eys' 4ob e3a(uation' merit rating and incenti3es

Custo+!# s!#"ic! Su**o#t S,st!+7

There is a customer ser3ice su**ort system ACSSSB 0hich functions under the CSSS for entire !ndhra 5radesh 6oca((y it re*orts to the !&M

AGM

CSSS .AP7

CSSS .VIFAG7
In the soft drin1s industry' the customer and the customer is defined se*arate(y The customer is one 0ho e2ists for *rofit This inc(udes the retai(er and distributor %y consumer' 0e mean the end user of the *roducts

The CSSS studies the distribution net0or1 and suggest im*ro3ements necessary The 3iabi(ity of e2a(ting *(anning is main function of CSSS It e3en suggests training *rograms for the sa(es force de*ending on the need The function of CSSS can be brief(y summed u* as 8managing the Midd(emen:

CHAPTER-4
T)!o#!tica <a#+ Ao#(

MARKETING
Int#oduction/
! mar1et Q focused' or customer Q focused' organi@ation first determines 0hat its *otentia( customerDs desire' and then bui(ds the *ro4ect or ser3ice Mar1eting theory and *ractice is 4ustified in the be(ief that customers use a *ro4ect or ser3ice because they ha3e a need' or because it *ro3ides a *ercei3ed benefit T0o ma4or factors of mar1eting are the recruitment of ne0 customers Aac9uisitionB and the retention and e2*ansion of re(ationshi*s 0ith e2isting customers Abase managementB Once a mar1eter has con3erted the *ros*ecti3e buyer' base management mar1eting ta1es o3er The *rocess for base management shifts that so(d the buyer in the first *(ace' and im*ro3ing the *rodctNse3ice continuous(y to *rotect the business from com*etiti3e encroachments For a mar1eting *(an to be successfu( the mi2 of the four 85s: must ref(ect the 0ant and desires of the consumers or sho**ers in the target mar1et trying to con3ince a mar1et segment to buy something they donDt 0ant is e2treme(y e2*ensi3e and se(dom successfu( Mar1ets de*end on insights from mar1eting reaches both forma( and informa(' to determain 0hat consumers 0ant and 0hat they are 0i((ing to *ay for Mar1eters ho*e that this *rocess 0i(( gi3e them a sustainab(e com*etiti3e ad3antage mar1eting management is the *ractica( a**(ication of this *rocess The offer is a(so an im*ortant addition to the E5Ds theory

Within most organi@ations' the acti3ities encom*assed by the mar1eting function are (ed by a 3ice *resident or )irector of mar1eting ! gro0ing number of organi@ations' es*ecia((y (arge US com*anies' ha3e a chief Mar1eting Officer *osition' re*orting to the Chief E2ecuti3e Officer The !merican mar1eting association A!M!B states' 8mar1eting is an organi@ationa( function and a for managing customer re(ationshi*s in 0ays that benefit the organi@ation and its sta1eho(ders: Mar1eting methods are informed by many of the socia( sciences' *articu(ar(y *sycho(ogy' socio(ogy' and economics !nthro*o(ogy is a(so a sma((' but gro0ing inf(uence Mar1et research under*ins these acti3ities Through ad3ertising' it is a(so re(ated to many of the creati3e arts Mar1eting is a 0ide and hea3i(y interconnected sub4ect 0ith e2tensi3e *ub(ication It is a(so and area of acti3ity infamous for re. in3enting itse(f and its 3ocabu(ary according to the times and the cu(ture

TAo !"! s o< Ma#(!tin$/

St#at!$ic Ma#(!tin$/ It attem*ts to determine ho0 an organi@ation com*etes
against its com*etitors in a mar1et *(ace In *articu(ar' it aims at generating a com*etiti3e ad3antage re(ati3e to its com*etitors

O*!#ationa Ma#(!tin$/ It e2acts mar1eting to attract and 1ee* customers and

to ma2imi@e the 3a(ue deri3e for them' as 0e(( as to satisfy the customer 0ith *rom*t ser3ices and meeting the customer e2*ectations O*erationa( Mar1eting inc(udes the determination of the mar1eting mi2 AE5DsB

T)! <ou# Ps a#!/

P#oduct/ The *roduct as*ects of a mar1eting dea( 0ith the s*ecifications of the actua( goods or ser3ices' and ho0 it re(ates to the end.userDs needs and 0ants The sco*e of a *roduct genera((y inc(udes su**orting e(ements such as 0arranties' guarantees' and su**ort P#icin$/ This refers to the *rocess of setting a *rice for a *roduct' inc(uding discounts The *rice need not be monetary.it can su**(y be 0hat is e2changed for the *roduct or ser3ices' e g time' energy' *sycho(ogy or attention P#o+otion/ This inc(udes ad3ertising' sa(es *romotion' *ub(icity' and *ersona( se((ing' branding and refers to the 3arious methods of *romoting the *roduct' brand' or com*any

 P ac!/ This refers to ho0 the *roduct gets to the customer' for e2am*(e' *oint of sa(e *(acement or retai(ing This fourth 5 has a(so sometimes been ca((ed *(ace' referring to he channe( by 0hich a *roduct or ser3ice is so(d '0hich geogra*hic region or industry' to 0hich segment Ayoung' adu(t' fami(ies' business *eo*(eB' etc These four e(ements are often referred to as the mar1eting mi2' 0hich a mar1eter can use to craft a mar1eting *(an The four 5s mode( is most usefu( 0hen mar1eting (o0 3a(ue consumer *roducts Industria( *roducts' ser3ices' high 3a(ue consumer *roducts re9uire ad4ustments to this mode( Ser3ices mar1eting must account for the uni9ue nature of ser3ices Industria( mar1eting must account for the (ong tern contractua( agreements that by (oo1ing at mar1eting form a (ong term re(ationshi* *ers*ecti3e rather than indi3idua( transaction

S!"!n Ps/
!s 0e(( as the standard four 5Ds A*roduction' *ricing' *romotion and *(aceB' ser3ices mar1eting ca((s u*on an e2tra three' tota(ing se3en and 1no0 together as the e2tended mar1eting mi2 There are7 P!o* !/ !ny *erson coming into contact 0ith customers can ha3e an im*act on o3era(( satisfaction Whether as *art of a su**orting to a *roduct or in3o(3ed in a tota( ser3ice' *eo*(e are *articu(ar(y im*ortant because' in the customerDs eyes' they are genera((y inse*arab(e from the tota( ser3ice !s a resu(t this' they must be Fe((o0 customerDs ser3ice e2*erience P#oc!ss/ this is the *rocess in3o(3ed in *ro3iding a ser3ice and the beha3ior of *eo*(e' 0hich can be crucia( to customer satisfaction P),sica E"id!nc!/ Un(i1e a *roduct' a ser3ice cannot be e2*erienced before it is de(i3ered' 0hich mar1s it intangib(e This therefore' means 0hether to use a ser3ice To reduce the fee(ing of ris1' thus im*ro3ing the chance for success' it is often 3ia( to offer *otentia( customers the chance to see 0hat a ser3ice 0ou(d be (i1e This is done by *ro3iding *hysica( e3idence' such as case studies' testimonia(s or demonstrations

Fou# N!A Ps
P!#sona iHation/ It is here referred customi@ation of *roducts and ser3ices through the use of the internet Ear(y e2am*(es inc(ude de(( on(ine and ama@on com but this conce*t is further e2tended 0ith emerging socia( media ad3anced a(gorithms Emerging techno(ogies 0i(( continue to *ush this idea for0ard Pa#tici*ation/ This is to a((o0 customer to *artici*ation in 0hat the brand shou(d stand forH 0hat shou(d be the *roduct directions and e3en 0hich ads to run This conce*t is (aying the foundation for disru*ti3e change through democrati@ation of information P!!#-to-*!!#/ This refers to customer net0or1s and communities 0here ad3ocacy ha**ens The historica( *rob(em 0ith mar1eting is that it is 8interru*ti3e: in nature' trying to im*ose a brand on the customer Theist is most a**arent in T" ad3ertising These 8*assi3e customer bases: 0i(( u(timate(y be re*(aced by the 8acti3e customer communities: %rand engagement ha**ens 0ithin those con3ersations 5+5 is no0 being referred as socia( commuting and is (i1e(y to be the most disru*ti3e force in the future of mar1eting P#!dicti"! +od! in$/ This refers to a(gorithms that are being successfu((y a**(ied in mar1eting *rob(ems

P#oduct/
Sco*!/
%readth Q number of *roduct (ines in a range )e*th Q number of *roduct items in a *roduct (ine

St!*s in *#oduct d!si$n/

)esign and de3e(o*ment of *roduct ideas Se(ection of and sifting through *roduct ideas

)esign and testing of emotiona( *roduct

!na(ysis of instead of emotiona( *roduct

T#ad!+a#(s/
Si$ni<icanc! o< a t#ad!+a#(/
)istinguishes one com*anyDs goods from those of another Ser3es as ad3ertisement for 9ua(ity

5rotects both consumers and manufacturers

Used in dis*(ays and ad3ertising cam*aigns

Used to mar1et ne0 *roduct

B#ands/
! brand is a name' term' design' symbo(' or other feature that distinguishes *roducts and ser3ices from com*etiti3e offerings ! brand re*resents the consumers e2*erience 0ith an organi@ation' *roduct' or ser3ice Co. branding in3o(3es mar1eting acti3ity in3o(3ing t0o or more *roducts

P#icin$/
5ricing refers to the amount of money e2changed for a *roduct This 3a(ue is determined by uti(ity to the customer in terms of money andNor sacrifice that the consumer is *re*ared t* gi3en for it

O>-!cts/
Increase sa(es 3o(ume Increase re3enue

!chie3e or increase *rofits

Increase or maintain mar1et share

E(iminate com*etition

!chie3e ad3antages of mass *roduction

Facto#s in< u!ncin$ *#ic!-d!t!#+ination/

5roduction and distribution costs Substitute goods a3ai(ab(e

Norma( tend *ractices

Reaction of distribution

Reaction of consumers

Nature of demand7

E(astic

Ine(astic Form of mar1et 5erfect com*(etion Mono*o(istic com*etition

Mono*o(y

O(igo*o(y

5hi(oso*hy

St!*s to d!t!#+in! *#ic!/

Manufacture to consumerAmost directB

Manufacture to 0ho(esa(er to retai(er to consumerAtraditiona(B

Manufacture to agent to retai(er to consumerAcurrentB

Manufacture to agent to customer

Manu<actu#!#s
R!asons <o# di#!ct s! in$ +!t)ods/
Manufacture 0ants to demonstrate goods Who(esa(ers' retai(ers and agents not acti3e(y se((ing

Manufacture unab(e to con3ince 0ho(esa(ers or retai(ers to stoc1 *roduct

High *rofit margin added o goods by 0ho(esa(ers and retai(ers

Midd(emen unab(e to trans*ort

R!asons <o# indi#!ct s! in$ +!t)ods/

Manufacture does not ha3e the financia( resources to distribute goods )istribution channe(s a(ready estab(ished

Manufacture has no 1no0(edge of efficient distribution

Manufacture 0ishes to use ca*ita( for further *roduction

Too many consumers in a (arge areaH difficu(t to reach

Manufacturer does not ha3e a 0ide assortment of good to enab(e efficient mar1eting

8)o !sa !#s/

R!asons <o# usin$ A)o !sa !#s
%ear ris1 of se((ing goods to retai(er or consumer Storage s*ace

)ecrease trans*ort costs

&rant credit to retai(ers

!b(e to se(( for the Manufactures

&i3e ad3ice to Manufactures

%rea1 do0n *roducts into sma((er 9uantities

R!asons <o# >,*assin$ A)o !sa !#s/

6imited storage faci(ities Retai(erDs *reference

Who(esa(er can not *romote *roducts successfu((y

)e3e(o*ment of 0ho(esa(ers o0n brands

)esire for c(oser mar1et contact

5osition of *o0er

Cost of 0ho(esa(ers ser3ices

5rice stabi(i@ation
Need for ra*id distribution

Ma1e more money

8a,s o< >,*assin$ A)o !sa !#s/

Sa(es offices or branches Mai( orders

)irect sa(es to retai(ers

)irect orders

A$!nts/

Co++ission a$!nts 0or1 for anyone 0ho needs their ser3ices They do
not ac9uire o0nershi* of goods but recei3e )e( cruder commission

S! in$ a$!nt act on an e2tended contractua( basis' se((ing a(( of the

*roducts of the manufacturer They ga3e fu(( authority regarding *rice and terms of sa(es

Bu,in$ a$!nts buy goods on beha(f of *redictors and retai(ers They ha3e
e2*ert 1no0(edge of the *urchasing function

B#o(!# s*ecia(i@es in the sa(e of one s*ecific *roduct They recei3e bro1er% Facto#, #!*#!s!ntati"!s re*resent more than one Manufacture They
o*erate 0ithin s*ecific !res and se(( re(ated (ines of goods but ha3e (imited authority regarding *rice and sa(es terms

Ma#(!tin$ co++unications/
Mar1eting communication brea1s do0n the strategies in3o(3ed 0ith mar1eting messages onto categories based on the goa(s of each message There are distinct stages in con3erting strangers to customers that go3ern the communication medium that shou(d be used

Ad"!#tisin$/
5aid form of *ub(ic *resentation and e2*ressi3e *romotion of ideas !imed at masses

Manufacturer may determine 0hat goes into ad3ertisement

5er3asi3e and im*ersona( medium

Functions and ad"anta$!s o< succ!ss<u ad"!#tisin$/

Tas1 of the sa(esman made easier Forces Manufacturer to (i3e u* to con3eyed image

5rotects and 0ants customers against fa(se c(aims and inferior *roducts

Enab(e manufacturer to mass.*roduce *roduct

Continuous reminder

Interru*ted *roduction a *ossibi(ity

Increases good0i((

Raises standards of (i3ing

5rices decrease 0ith increased *o*u(arity

Educates Manufacturer and 0ho(esa(er about com*etitorDs offerings as 0e(( as shortcomings in their o0n

O>-!cti"!s/
Maintain demand for 0e((.1no0 goods Introduce ne0 and un1no0n goods

Increase demands for 0e((.1no0n

R!Iui#!+!nts o< a $ood ad"!#tis!+!nt/

!ttract attention Stimu(ate interest

Create desire

%ring about action

Ei$)t st!*s in an ad"!#tisin$ ca+*ai$n/

Mar1et Research Setting out aims

%udgeting

Choice of mediaAT"' Ne0s*a*er' RadioB

Choices of actorANe0 TrendB

)esign and Wording

Coordination

Test resu(ts

P!#sona sa !s/
Ora( *resentation gi3en by a sa(esman 0ho a**roaches indi3idua(s or a grou* of *otentia( customer7 6i3e' interacti3e re(ationshi* 5ersona( interest

!ttention and res*onse

Interesting *resentation

Sa !s *#o+otion
Short.term incenti3es to encourage buying of *roducts7 Instant a**ea( !n2iety to se((

Ma#(!tin$ Pu> is) R! ations .MPR7/

Stimu(ation of demand through *ress re(ease gi3ing a gi3ing a fa3orab(e re*ort to a *roduct Higher degree of credibi(ity

Effecti3e(y ne0s

%oosts enter*riseDs image

Custo+!# <ocus/
Many com*anies today ha3e customer focus Aor customer orientationB This im*(ies that the com*any focuses its acti3ities and *roducts on consumer demands &enera((y there are three 0ays of doing thisH the customer.dri3en a**roach' the sense of identifying mar1et changes and the *roduct inno3ation a**roach In the consumer.dri3en a**roach' consumer 0ants are the dri3ers of a(( strategic mar1eting decisions No strategy is *ursued unit it *asses the test of consumer research E3ery as*ect of a mar1et offering' inc(uding the nature of the redact itse(f' is dri3en by the needs of *otentia( consumers The starting *oint is a(0ays the consumer The rationa(e for this a**roach is that there is no *oint s*ending RP) funds de3e(o*ing *roducts that *eo*(e 0i(( not buy History attests to many *roducts that 0ere commercia( fai(ures in s*ite of being techno(ogica( brea1throughs ! formu(a a**roach to this customer.focused mar1eting is 1no0n as SI"! Aso(ution' information' 3a(ue' accessB This system is basica((y the four 5s renamed and re0ord to *ro3ide a customer focus The SI"! mode( *ro3ides a demandNcustomer centric 3ersion a(ternati3e to the 0e((.1no0n E5s su**(y side mode( A*roduct' *rice' *romotionB of mar1eting management 5roductRso(ution 5romotionRinformation

5riceR3a(ue 5(aceRaccess

T)! <ou# ! !+!nts o< t)! SIVA +od! a#!/

/

SO&UTION/ ho0 a**ro*riate is the so(ution to the customerDs

*rob(emNneedL

INFORMATION/ )oes the customer 1no0 about the so(ution' and if so

ho0' 0ho from' do they 1no0 enough to (et them ma1e a buying decisionL

VA&UE/ )oes the customer 1no0 about the 3a(ue of the transaction' 0hat
it 0i(( cost' 0hat ate the benefits' 0hat might they ga3e to sacrifice' 0hat 0i(( be their re0ordL

ACCESS/ 0here can the customer find the so(utionL Ho0 easi(yN
(oca((yNremote(y 3an they buy it and ta1e de(i3eryL

This mode( 0as *ro*osed by che1itan )e3 and Schu(t@ in the mar1eting management 4ourna( of the !merican mar1eting association' and *resented by them in mar1et (eader the 4ourna( of the mar1eting society in the UJ The mode( focuses hea3i(y in the customer and ho0 they 3ie0 the transaction

P#oduct <ocus/
In a *roduct inno3ation a**roach' the com*any *ursues *roduct inno3ation' and then tries to de3e(o* a mar1et for the *roduct 5roduct inno3ation deri3es the *rocess and mar1eting research is conducted *rimari(y to ensure that a *rofitab(e mar1et segment e2ists or the inno3ation The rationa(e is that customers nay not 1no0 0hat o*tions 0i(( be a3ai(ab(e to them in the future so 0e shou(d not e2*ect them to te(( us 0hat they 0i(( buy in the future Ho0e3er' mar1eters can aggressi3e(y o3er.*ursue *roduct inno3ation and try to o3erca*ita(i@e on a niche When *urchase a *roduct inno3ation a**roach' mar1eters must ensure that they if Thomas Edison de*ended on mar1et research he 0ou(d ha3e *roduced (arger cand(es rather than in3enting (ight bu((s Many firms' such as research and de3e(o*ment focused com*anies successfu((y focus in *roduct inno3ation Asuch as Nintendo 0ho constant(y change the 0ay "ideo games are *(ayedB Many *urists doubt 0hether this is rea((y a from of mar1eting orientation at a((' because of the e2*ort status of consumer research Some e3en 9uestion 0hether it is mar1eting !n emerging area of study and *ractice concerns interna( mar1eting' or ho0 em*(oyees are trained and managed to de(i3er the brand in a 0ay that *ositi3e(y im*acts the ac9uisition and retention of customer Aem*(oyer brandingB )iffusion of inno3ation research e2*(ores ho0 and 0hy *eo*(e ado*t ne0 *roducts' ser3ices and ideas ! re(ati3e(y ne0 form of mar1eting uses the internet and is ca((ed int!#n!t +a#(!tin$ or more genera((y E.mar1eting affi(iate mar1eting' des1to*

ad3ertising It ty*ica((y tries to *erfect the segmentation strategy used on traditiona( mar1eting It tracers its audience more *recise(y' and is sometimes ca((ed *ersona(i@ed mar1eting or on!-to-on! +a#(!tin$% With consumers eroding attention s*an and 0i((ingness to gi3e time to ad3ertising messages' mar1eters are turning to forms of *ermission mar1eting such as branded content' custom media and rea(ity mar1eting The use of herd beha3ior in mar1eting

In an artic(e entit(ed :sAa#+in$ t)! s)! "!s/ )oA s)o*s can !D* oit *!o* !Cs )!#d +!nta it, to inc#!as! sa !s;' the economist recent(y re*orted a recent conference in Rome on the sub4ect of the simu(ation of ada*ti3e human beha3ior Mechanisms to increase im*u(se buying and get *eo*(e 8to buy more by *(anning on the herd instinct: 0ere shared The basic idea is that *eo*(e 0i(( buy more of *roducts that are seen to be *o*u(ar' and se3era( feedbac1 mechanisms to get *roduct *o*u(arity information to be mentioned' inc(uding smart cart techno(ogy and the use of radio fre9uency identification tag techno(ogy

Co+*!tito# Ana ,sis/

It is the *rocess of identifying the *erformance and mar1eting strategy of com*etiti3e brands or *roducts in the mar1et*(ace In order to *(an an effecti3e mar1eting strategy' mar1eters need to 1no0 about the com*etiti3e en3ironment and to find a(( they can about com*etitors *roducts' *rices' communication channe( 9ua(ity and ser3ices so as to determine areas of com*etiti3e ad3antage and disad3antage

Com*etiti3e ana(ysis is the *ractice of ana(y@ing the com*etiti3e en3ironment in 0hich your business o*erates' inc(uding strengths and 0ea1ness of the business 0ith 0hich you com*ete' strengths and 0ea1ness of your o0n com*any' demogra*hics and desires of mar1et *(ace customers' strategies that can im*ro3e your *osition in the mar1et*(ace

E !+!nts o< co+*!titi"! ana ,sis/

There are se3era( im*ortant e(ements of com*etiti3e ana(ysis' each of 0hich need to be carefu((y studied if one ho*es to transform com*etiti3e ana(ysis into business *rofitabi(ity Ma4or as*ects of com*etiti3e ana(ysis inc(ude the fo((o0ing7

DEFINING COMPETITIVE/
8The first ste* is to define your uni3erse of com*etitors': some business may
offer *roducts or ser3ices that (arge(y mirror those offered by your o0n com*any' 0hi(e others may on(y dis*ense one or t0o *roductsNser3ices that com*ete 0ith your com*any offerings The business conducting the com*etiti3e ana(ysis has to decide 0hether (atter e2am*(es of com*etition are incidenta( or 0hether they *resent a *otentia( threat to the businessDs financia( 0e((.being

ANA&YSIS OF COMPETITIVE STRENGTHS AND 8EAKNESSES/

Once a com*anyDs uni3erse of com*etitors has been defined and identified' it can start on the *rocess of identifying the strengths and 0ea1nesses of those com*etitors Many sma(( business o0ners are tem*ed to *(ace undue 0eight on the 9ua(ity of the *roduct or ser3ice they offer %ut it betrays a fundamenta( misunderstanding of ho0 business 0or1s The ob4ecti3e features of your *roduct or ser3ices may be re(ati3e(y sma(( *art of the com*etiti3e *icture In fact' a(( the com*onents of customer *reference' inc(uding *rice' ser3ice' and (ocation are on(y ha(f of the com*etiti3e ana(ysis The other ha(f of the e9uation is e2amining the interna( strength of your com*etitorDs com*anies In the (ong run' com*anies 0ith significant financia( resources' high(y moti3e or creati3e *ersonne(' and other o*erationa( assets 0i(( *ro3e to be tough' enduring com*etition There are main 9uestions that cut to the heart of this e(ement of com*etiti3e ana(ysis7 0hat 1ey ad3antages does the com*eting business *ossess in the rea(ms of *roduction management' mar1eting' ser3ice re*utation' and other as*ects of business o*erationL What 1ey 3u(nerabi(ities or 0ea1nesses do the com*eting firms ha3e in these same areasL Of course' e2amination of a com*etitorDs strengths and 0ea1ness a(so re9uires se*arating im*ortant ad3antages and disad3antages from (ess im*ortant ad3antages and disad3antages O0ners shou(d concentrate their ana(ysis efforts in four ma4or areas7

Studying the reasons behind the success and fai(ures of com*etiti3e firms

Ma4or issues that moti3e customers

Ma4or com*onent cost

%arriers to mobi(ity 0ithin the industry

ANA&YSIS

OF

INTERNA&

STRENGTHS

AND

8EAKNESSES/
!nother im*ortant e(ement of com*etiti3e ana(ysis is determining 0hat your o0n com*anyDs strengths and 0ea1nesses are What as*ects of the com*anyDs o*eration con3ey an ad3antage in the mar1et *(aceL Is your sa(es force com*osed of bright' ambitious indi3idua(sL )oes com*any ha3e a ad3anced in3entory management system in *(aceL )o you ha3e an em*(oyee 0ith a ta(ent for ad3ertising andNor mar1etingL Once a com*any has determined its strength' it can go about the *rocess of uti(i@ing those strengths to im*ro3e its *osition in the mar1et *(ace Con3erse(y' an e2amination of interna( 0ea1nesses A*roduct *resentation' 0or1 force' bad *hysica( (ocation' etcB shou(d initiati3es designed to address those shortcomings

ANA&YSIS OF CUSTOMER NEEDS AND 8ANTS/

6earning about customer needs and 0ants is an im*ortant *art of com*etiti3e ana(ysis as 0e(( Customer *riorities shou(d become your businessDs *riorities In addition' sma(( businesses shou(d ta1e care that they not (imit their study to *riorities that are a(ready manifested in the mar1et *(ace Indeed' ne0 *roduct de3e(o*ment

and ne0 inno3ations in ser3ice are essentia( to business success in any industry %usiness o0ners and managers need to study and thus antici*ate future customer needs and 0ants as 0e(( as those needs and 0ants that are current(y being addressed

BUI&DING

STRATEGIC

P&ANS

TO

IMPROVE

MARKETP&ACE POSITION/
Once a sma(( business o0ner has attended to the abo3e re9uirements of com*etiti3e ana(ysis' he or she can *roceed 0ith the fina( c(ement (f the *ractice7 bui(ding a strategic *(an that ref(ects the findings strategic *(ans shou(d touch on a(( areas of a businessDs o*erations' inc(uding *roduction of goods andNor ser3ices' distribution of those goods andNor ser3ices' *ricing of goods andNor ser3ices' and mar1eting of goods andNor ser3ices Criticisms of com*etiti3e ana(ysis Whi(e the *ractice of com*etiti3e ana(ysis is genera((y recogni@ed as an im*ortant com*onent of (ong term business success' some 3oices do offer cautions about f(a0ed com*etiti3e ana(ysis *ractices They note that com*etiti3e ana(ysis that are incom*(ete or based on incorrect data can (ead businesses to construct fau(ty business strategies !na(ysts ha3e a(so *ointed our that traditiona( com*etiti3e ana(ysis has become more com*(e2 and *otentia((y time.consuming since so many businesses offer di3ersified *roducts and ser3ices Sti(( others contend that e2cessi3e *reoccu*ation 0ith 1ee*ing *ace 0ith the strategies' *roducts and ser3ices of other com*etitors can resu(t in atro*hy in interna( origina((y of *roduction and design Other obser3ers' mean0hi(e' argue that 4udging your com*anyDs *erformance strict(y on the basis of ho0 you are *erforming against chief com*etitors can retard

your businessDs *rofitabi(ity and (ead to a fa(se sense of security 8!s (ong as 0e a**ear to be doing better than someone e(se' 0e can fee( that 0e must be doing 0e((' so 0e donDt need to change : Co+*!tito# ana ,sis and strategic management mar1eting is an assessment of the strengths and 0ea1ness of current and *otentia( com*etitors Created by Michae( *orter com*etitor ana(ysis focuses on E 1ey as*ects7 com*etitorDs ob4ecti3es' com*etitorDs assum*tions' com*etitorDs strategy and com*etitorDs resources and ca*abi(ities

Co+*!tito# *#o<i in$/

!nother common techni9ue is to create detai(ed *rofi(es on each of your ma4or com*etitors These *rofi(es gi3e an in.de*th descri*tion of the com*etitorDs bac1ground' finance' *roducts' mar1ets' faci(ities' *ersona( and strategies This inc(udes

Bac( $#ound
o 6ocating of offices' *(ants and on(ine *resences o History.1ey *ersona(ities' dates' e3ents and structure

o O0nershi*' cor*orate go3ernance and organi@ationa( structure

 Financia s
o 5.E ratios' di3idend *o(icy and *rofitabi(ity 3arious financia( ratios' (i9uidity and cash f(o0 o 5rofit gro0th *rofi(e' method of gro0th

P#oducts
o 5roducts offered' de*th and breadth of *roduct (ine' *roduct *ortfo(io ba(ance o Ne0 *roducts de3e(o*ed' ne0 *roduct success rate and RP) strengths o %rands' strengths of brand *ortfo(io' brand (oya(ty and a0areness o 5atents and (icenses o Kua(ity contro( conformance o Re3erse engineering brand

 Ma#(!tin$
o Segments ser3ed' mar1et shares' customer base' gro0th rate and customer (oya(ty o 5romotiona( mi2' *romotiona( budgets' ad3ertising themes' ad agency used' sa(es force success rate and on(ine *romotiona( strategy o )istribution channe(s used' e2c(usi3ity agreements' a((iances and geogra*hica( co3erage o 5ricing' discounts and a((o0ances

*!#sonn!
o Number of em*(oyees' 1ey em*(oyees and s1i(( sets o Strength of management and management sty(e o Com*ensation' benefits and em*(oyees mora( retention rates

Co#*o#at! and +a#(!tin$ st#at!$i!s

o Ob4ecti3es machine statements' gro0th *(ans' ac9uisitions and di3estitures o Mar1eting strategies

M!dia scannin$
Scanning com*etitorDs ads can re3ea( much about 0hat the com*etitor be(ie3es about mar1eting and their mar1eting Changes in a com*etitorDs ad3ertising message can re3ea( ne0 *roduct offerings' ne0 *roduction *rocess' (ine e2tensions and contractions *rob(ems 0ith *re3ious *ositions' in sights from recent mar1eting or *roduct research' a ne0 strategic direction' a ne0 source sustainab(e com*etiti3e ad3antage on 3a(ue migrations 0ith in the industry It might a(so indicate ne0 *ricing strategy such as *enetration' *rice discrimination' *rice s1imming' *roduct bund(ing' 4oint *roduct *ricing' discounts or (oss (eaders It may a(so indicate a ne0 *romotion strategy such as *ush' *u((' ba(anced' short.term sa(es generation' (ong term image creation' informationa(' com*arati3e' effecti3e' reminder' ne0 creati3e ob4ecti3es' ne0 uni9ue se((ing *ro*osition' ne0 creati3e conce*ts' a**ea(s' tone and themes or a ne0 ad3ertising agency It might a(so indicate a ne0 distribution strategy' ne0 distribution *artners' more e2tensi3e distribution' more incenti3e distribution' a change geogra*hica( focus or e2c(usi3e distribution (itt(e of this inte((igence is definiti3e7 additiona( information is needed before conc(usions shou(d be dra0n

Ot)!# sou#c!s o< co#*o#at! int! i$!nc! inc ud! t#ad!' *at!nt <i in$s' +utua custo+!#s' annua #!*o#ts and n!A co+*!tito#s
In addition to ana(y@ing current com*etitors' it is necessary to estimate future com*etiti3e threats The most common sources *f ne0 com*etitors are7 Com*anies com*eting in a re(ated *roductNmar1et Com*anies using re(ated techno(ogies

Com*anies a(ready targeting your *rime mar1et segment but 0ith un re(ated *roducts

Com*anies from other geogra*hica( areas and 0ith simi(ar *roducts

Ne0 start.u* Com*anies organi@ed by forma( em*(oyees andNor managers of e2isting com*anies

T)! !nt#anc!s o< n!A co+*!tito#s a#! i(! , A)!n/ There are high *rofit margins in the industry There is unmet demand Ainsufficient su**(yB in the industry

There are no ma4or barriers to entry

There is future gro0th *otentia(

Com*etiti3e ri3a(ry is not intense

&aining a com*etiti3e ad3antage o3er e2isting firms is feasib(e

CHAPTER5
Data ana ,sis and int!#*#!tation

Table 1

5 %So<t d#in(s *u#c)as!d >, +aDi+u+ consu+!#/ Ta> !/

S% No / + ? Co+*an, Coca.Co(a 5e*si Others No% o< Out !ts /C, E, /, B o< consu+!# <C> +,> C>

G#a*)/

% 0f Consum er

10, 5% 40, 20% 1 Coca-Cola 2 Pepsi 3 Other

150, 75%

Int!#*#!tation/
From the abo3e ana(ysis I ha3e found that <C> of the consumers use Coca. Co(a' +,> of the consumer use 5e*si and remaining *eo*(e *refer to other brands

Ta> !/ 0

0 %Sa ! o< *!t >ott !s *!# da,/ Ta> !/

S% No / + ? Co+*an, Coca.Co(a 5e*si Others No% o< Out !ts /?, =, /, Sa !s *!#c!nt =C> ?,> C>

&ra*h7
sales percent

10, 5%

60, 30%

1 Coca-Cola 2 Pepsi 3 Other 130, 65%

Int!#*#!tation/
From the abo3e ana(ysis I ha3e found that =C> of the consumers use Coca. Co(a' ?,> of the consumer use 5e*si and remaining *eo*(e *refer to other brands

Ta> !/ 6

6 %Satis<action !"! >, consu+!#s/ Ta> !/

S% No / + Co+*an, Coca.Co(a 5e*si No% o< Out !ts /+, -, Satis<action !"! =,> E,>

G#a*)/
satisfaction level

, 0%

80, 40%

1 Coca-Cola 2 Pepsi 120, 60% 2

Int!#*#!tation/
From the abo3e ana(ysis' Coca.co(a sa(es *ercent is high to com*are to other soft drin1 sa(es in the mar1et So coca.co(a gi3es tuff com*etition to other brands

Ta> !/ 4 4 %T#ad! sc)!+!s o<<!#!d >, co+*ani!s/

Ta> !/
S% No / + Co+*an, Coca.Co(a 5e*si No% o< Out !ts /E, =, Satis<action !"! <,> ?,>

G#a*)/
Satisfaction Level

0, !0%

"oca#"ola Pep$i

1 40, 70%

Int!#*#!tation/
From the abo3e ana(ysis' Coca.co(a is *ro3iding more trade schemes to out(ets in the mar1et' to com*are the other soft drin1s com*anies

Ta> !/ 3 3 %B!st Consu+!# *#o+otion o<<!#s/

Ta> !/
S% No / + Co+*an, Coca.Co(a 5e*si No% o< Out !ts /?= =E Satis<action !"! =-> ?+>

G#a*)/
Satisfaction Level

64, 32%

Coca-Cola Pepsi

136, 68%

Int!#*#!tation/
From the abo3e ana(ysis Coca.co(a *ro3ides the more offers to consumers to com*are other soft drin1s com*anies (i1e 5e*si in the mar1et So co(a brand sa(e is 3ery high in the mar1et The satisfaction (e3e( is =-> and 5e*si (e3e( is ?+>

Ta> !/ ?

? %Co+*an, >#and *#!<!#!d to s! / Ta> !/

S% No / + ? Co+*an, Coca.Co(a 5e*si Others No% o< Out !ts /=, E, Ni( Sa !s *!#c!nt -,> +,> Ni(

G#a*)/
Sales percentage

40, 20%

Coca-Cola Pepsi

160, 80%

Int!#*#!tation/
From the abo3e ana(ysis Ma2imum out(ets are to *refer co(a to 5e*si sa(es in our out(ets So co(a sa(e is -,> and 5e*si sa(e is +,>

Ta> !/ = = %B#and *#!<!##!d >, t)! out !t s! !#s to s! /

Ta> !/
S% No / + Co+*an, Coca.Co(a 5e*si No% o< Out !ts /C, C, Satis<action !"! <C> +C>

G#a*)/
Satifaction Level

50, 25%

Coca-Cola Pepsi

150, 75%

Int!#*#!tation/
From the abo3e ana(ysis' Ma2imum out(ets are to *refer best brand is co(a Co(a brand satisfaction (e3e( is <C> and 5e*si brand satisfaction (e3e( is +C> out of +,, ,ut(ets

Ta> !/ 2 2 %B!st Coo !# condition *#o"id!d/

Ta> !/
S% No / + Co+*an, Coca.Co(a 5e*si No% o< Out !ts /C, C, Satis<action !"! <C> +C>

G#a*)/
Satifaction Level

50, 25%

Coca-Cola Pepsi

150, 75%

Int!#*#!tation/

Ta> !/ @ @ %I+*act on a !"! s o< custo+!#s/

Ta> !/
S% No / + Co+*an, Coca.Co(a 5e*si No% o< Out !ts /EE == I+*act !"! <+> +->

G#a*)/
Satifaction Level

56, 28%

Coca-Cola Pepsi

144, 72%

Int!#*#!tation/
From the abo3e ana(ysis' Co(a brand to im*act the a(( (e3e(s of customers in the soft drin1 mar1et Co(a im*act (e3e( is <+> and 5e*si im*act (e3e( is +->

Ta> !/ 51 51 %T,*! o< custo+!#s *#!<!##in$ to us! so<t d#in(s +ost/

Ta> !/
T,*! o< custo+!#s Students Em*(oyees Others

S% No / + ?

No% o< Out !ts //, <, +,

Custo+!# !"! CC> ?C> /,>

G#a*)/
No. of Outlets

10%

tu!e"ts #$plo%ees 35% 55% Others

Int!#*#!tation/
From the abo3e ana(ysis' Students and em*(oyees are consumed most co(a brand in the soft drin1 mar1et Students consume soft drin1 (e3e( is CC>' em*(oyees (e3e( is ?C> and others is /,>

Ta> !/ 55

55 %P#oduct Eua it, &!"! / Ta> !/

S% No / + ? Co+*an, Coca.Co(a 5e*si Others No% o< Out !ts /C, E, /, Satis<action &!"! <C> +,> C>

G#a*)/
product Quality

10, 5% 40, 20% 1 Cola 2 Pepsi 3 Others

150, 75%

Int!#*#!tation/
From the abo3e ana(ysis' Coca.Co(a 9ua(ity is high to com*are to 5e*si and other soft drin1s in the mar1et

Ta> !/ 50

50 %Ot)!# &oca so<t d#in(s sa ! in< u!ncin$ on co a/ Ta> !/

S% No / + C)oos! $es No No% o< Out !ts /+, -, *!#c!nt !"! =,> E,>

G#a*)/
No.of Outlets

80, 40% 1 &es 2 No 120, 60%

Int!#*#!tation/
From the abo3e ana(ysis' coca.co(a soft drin1s a sa(e 0as inf(uence by other soft drin1s sa(es' (i1e 5e*si and other soft drin1s %ut co(a sa(es 3ery high in soft drin1 mar1et to com*are 0ith other soft drin1s sa(es

Ta> !/ 56

56 %Ro ! o< Co+*an,Cs ad"!#tis!+!nts on inc#!asin$ t)! sa ! o< d#in(s/ Ta> !/

S% No / + C)oos! $es No No% o< Out !ts /-, +, *!#c!nt !"! ;,> /,>

G#a*)/
No.of Outlets

20, 10%

1 &es 2 No

180, '0%

Int!#*#!tation/
From the abo3e ana(ysis' soft drin1s com*anies to *ub(icity there *roducts through the ad3ertisement 6i1e T" adds 0ith ce(ebrities' in ne0s *a*ers and f(e2 boards So o3er sa(es increase in mar1et

CHAPTER6
Findin$s Su$$!stions

FINDINGS
The most *referred brands of Hindustan Coca Co(a com*any are Thums u* 'Maa@a 'S*rite The *reference rate of these drin1s is more than other brands of Coca Co(a Com*any

Co1e is ha3ing highest mar1et share 0hen com*ared 0ith 5e*si The a3ai(abi(ity of the co1e *roducts is good in the segments (i1e high and medium income areas' 0here the out(ets can manage stoc1s as there are good sa(es

"isibi(ity of the co1e *roducts 0ithin the mar1et has increased drastica((y )ue to strict 3igi(ance' com*(aints are rectified 3ery 9uic1(y Most of the retai(ers are satisfied 0ith the com*anyDs *erformance Fe0 of the retai(ers are not re0arded 0ith the schemes %rand order is maintained 0e(( by some retai(ers but' some retai(ers are not maintaining the order due to their o0n reasons

The com*any had a 0ider sco*e to increase its distribution further in the outs1irts of the city

There is a high demand to the 4uice *roducts but due to the (ac1 of stoc1 su**(ies are (o0ered

!ds in te(e3ision are attracting customers 3ery 0e(( than ads in other media The com*any is *romoting (atest techni9ues in order to get effecti3e out*ut in case of administration' mar1eting' *roduction' em*(oyee 0e(fare management' etc

Introduction of ne0 schemes in re(ation 0ith the sa(es *romotion are time(y and 3ery res*onsi3e

Hindustan Coca.Co(a %e3erages *ri3ate (imited is fo((o0ing se(ections a**roach in distribution

Right e2ecution of dai(y acti3ities shou(d be done to de3e(o* the regu(ar mar1eting *rocess

SUGGESSIONS

E2*(ain the im*ortance of *er. se(( conce*t to the ESMNM)s Conduct MIT to e2*(ain *er. sea( ad3antages to the retai(er as 0e(( as staff Retai(er must be made c(ear(y a0are of the 3arious schemes and *romotiona( acti3ities of co1e in detai(

! *ro*er stoc1 shou(d be maintained in the *ea1 seasons 0ithin the city as if there is any *rob(em at the *roduction unit' demand can be satisfied

! *ro*er uniform shou(d be *ro3iding to the M)Ds as they 3isit the out(ets regu(ar(y and 0i(( create a good im*act

Necessary su**ort shou(d *ro3ide to the out(ets to transform from norma( to the e2c(usi3e units or RE) units

Monitoring or 3isiting the mar1et shou(d be done on dai(y basis to fi(( u* the ga*s in order to attain the ob4ecti3es effecti3e(y

UTC schemes are to be high(y *romoted a(ong 0ith the cash discount schemes

Fre9uency of T" media ad3ertisements shou(d be increased in the number for boasting sa(es and *rofits

Incenti3e on target achie3ement shou(d be increased to both retai(ersNout(ets and to the distributors

Warm dis*(ay shou(d be ma2imi@ed Training must be gi3e to the intermediaries and em*(oyees to o3ercome the co(a contro3ersies' etc

SUMMARY
In the mar1et scenario' the ob4ecti3es of any business inc(udes the fo((o0ing'

5rofit ma2imi@ation Cost minimi@ation %usiness gro0th and de3e(o*ment &(oba( e2*ansion !ttaining com*etiti3e ad3antage )e3e(o*ing core com*etency 'etc

Hence in order to attain them the firm focuses on the manageria( functions )istribution is a(so one of the most im*ortant acti3ity inc(uded under the mar1eting acti3ities and thus it had been focused in order to 1no0 its in3o(3ement in the attainment of the ob4ecti3es The factors concerned 0ith the channe(s of distribution are 0e(( studied and ana(y@ed !(so it 0as re3ea(ed through the study that there is a sco*e for further de3e(o*ment of the distribution net0or1 to distribute soft drin1s of co1e to e3ery hoo1 and corner of the country to maintain its current *osition

!s channe(s of distribution is not an indi3idua( conce*t and concerns 0ith many the other conce*ts (i1e the fo((o0ing' focus had been (aid on those acti3ities too to some e2tent to ha3e a c(ear cut idea about the *ro4ect done The other acti3ities and the conce*ts 0hich are concerned are as fo((o0s

Sa(es *romotion acti3ities 6ogistics and su**(y chain Customer re(ationshi* management Channe( management Channe( dynamic' etc

BIB&IOGRAPHY

R!<!#!nc!/

Aut)o# Na+!
5hi((i* Jot(er !drian *a(mer !4ay *andy Jeegan

Boo( Na+!
Mar1eting Mgt Introduction to Mgt theory and *ractice Mar1eting conce*ts &(oba( Mar1eting Mgt

Edition Pu> is)!#s

// /, /? < 5earson O2ford Uni3ersity Tata Mc&ra0 Hi(( 5rentice Ha(( of India

Y!a#
+,,< +,,< +,,= +,,C

8!>sit!s/ 000 cocaco(a com 000 co1einindia com

EUESTIONNAIRE
NAME OF THE OUT&ET/ ADDRESS/

Which broad soft drin1s are *arched by consumers in your sho* aB Co(a bB 5e*si cB others

Which com*any *et bott(es so(d high(y in your sho* *er daysL aB Co(a bB 5e*si cB Others

Which com*any ser3ices are satisfied by the consumersL aB Co(a bB 5e*si

Trade schemes offered by 0hich com*anies are good to youL aB Co(a bB 5e*si

CB Which com*any offers best consumer *romotionsL aB Co(a bB 5e*si

=B Which com*any brand do you *refer to se((L aB Co(a bB 5e*si cB Others

< Which com*anyDs ce((ar condition is bestL aB Co(a bB 5e*si

- Which com*any is gi3ing im*act to a(( (e3e( of consumersL aB Co(a bB 5e*si

; Who consumed soft drin1s most(yL aB Students bB Em*(oyees cB Others

/,B Who res*onse 9uic1(y' if damage any *roductsL aB Co(a bB 5e*si

// Which com*any *roduct 9uantity is highL aB Co(a bB 5e*si cB Others

/+B !re you agree (oca( other soft drin1s sa(e inf(uence on co(a sa(eL aB $es bB No cB None

/?B Ho0 do you retai(er buy soft drin1sL aB Cash bB Credit

/EB )o you agree com*anyDs ad3ertisement increase the sa(e of drin1sL aB $es bB No

/CB What is the *ercentage contribution of soft drin1s business in your tota( sho* businessL !B />.C> bB C>./,> cB /,>.+,>