CHAPTER-1

INTRODUCTION

Introduction
Coca-Cola, the product that has given the world its best-known taste was born
i n At l a n t a , G e o r g i a , o n M a y 8 , 1 8 8 6 . C o c a - C o l a C o m p a n y i s t h e w o r l d s
leading manufacturer, marketer and distributor of non-alcoholic beverage
concentrates and syrups, used to produce nearly 400 beverage brands. It sells
beverage

concentrates

and

syrups

to

bottling

and

canning

operators,

distributors, fountain retailers and fountain wholesalers. Coca-Cola was first

i n t r o d u c e d b y J o h n S y t h P e m b e r t o n , a p h a r m a c i s t , i n t h e y e a r 1 8 8 6 i n At l a n t a ,
Georgia when he concocted caramel-colored syrup in a three-legged brass
kettle in his back yard. He first distributed the product b y carr ying it in a
j u g d o w n t h e s t r e e t t o J a c o b s P h a r m a c y a n d c u s t o m e r s b o u g h t t h e d r i n k f o r
five cents at the soda fountain. Carbonated water was teamed with the new
syrup,

whether

by

accident

or

otherwise,

producing

drink

that

was

proclaimed delicious and refreshing, a theme that continues to echo today

wherever Coca-Cola is enjo yed. Coca-Cola originated as a soda fountain
beverage in 1886 selling for five cents a glass. Early growth was impressive,
b u t i t w a s o n l y w h e n a s t r o n g b o t t l i n g s ys t e m d e v e l o p e d t h a t C o c a - C o l a
b e c a m e t h e w o r l d - f a m o u s b r a n d i t i s t o d a y. C o c a - C o l a w a s t h e l e a d i n g s o f t
drink brand in India until 1977, when it left rather than reveal its formula to
the Government and reduce its equity stake as required under the Foreign
Regulation Act (FERA) which governed the operations of foreign companies in
India. In the new liberalized and deregulated environment in 1993, Coca-Cola
m a d e i t s r e - e n t r y i n t o I n d i a t h r o u g h i t s 1 0 0 % o w n e d s u b s i d i a r y, H C C B P L , t h e
I n d i a n b o t t l i n g a r m o f t h e C o c a - C o l a C o m p a n y. T h e m a i n o b j e c t i v e o f t h i s
stud y lies in understanding the organization and studying and understanding
the consumers perception and opinion about the promotions offerd by the
C o c a - C o l a C o m p a n y. A r e t a i l e r s a m p l i n g i n v o l v i n g 2 0 0 o u t l e t s w a s c o n d u c t e d
in a span of 10 days across major areas in order to give the products the
required marketing push and to recognize the prospective areas and their
opinion in order to develop and market the offers in a better way in the near

future. The methodology used in studying and understanding the perceived

v i e w s o f c o n s u m e r s t o w a r d s t h e s a l e s & p r o m o t i o n s w a s S U RVE Y S . T h e
findings of the activity have been drawn out in form of graphs and suggestions
have been offered there from.

OBJECTIVE OF THE STUDY

The main objective of this study lies in studying and understanding the present
offers and schemes providing by the Coca-Cola and how much retailer
satisf ying with present offers.

CHAPTER 6 METHODOLOGY

RESEARCH METHODOLOGY
D ATA AN A LYS I S
RESEARCH METHODOLOGY
T h i s r e s e a r c h i n v o l v e d a s t u d y, w h i c h w a s d e s c r i p t i v e a s w e l l a s
explorative in nature it basically aims at gathering data about how the
c o c a - c o l a s c h e m e p l a y i n g i n t h e m i n d o f s h o p k e e p e r s & c o n s u m e r.

M E T H O D S O F D ATA C O L L E C T I O N :
T H E R E AR E T W O T Y P E S O F D ATA
1. Primary data
2. Secondary data

1) Primary data collection : Primary data can be collected by three

methods.

a)

Observation

b)

Experiment

c)

S u r v e ys
But here, only surveys method of data collection is preferred which is very
suitable to reach the researcher motto.

A. Research instrument: Printed Questionnaire was

used as the research instrument to collect the
required information.
B. Area of surveys: The survey was conducted in
d i f f e r e n t l o c a t i o n o f H y d e r a b a d c i t y.
Sampling plan: sampling plan consists of
I. Sam pling

unit:

The

retailer

of

Grocery shop,

general store, betel shop, and medicine store was

selected from different places of Hyderabad.
II. Sampling size: 200 Outlets.
III. Sam pling

procedure :

Simple

random

sampling

procedure was followed

I V. S a m p l i n g m e t h o d : D a t a w e r e c o l l e c t e d b y r e t a i l e r
s u r v e y. T h e r e t a i l e r s a r e d i r e c t l y c o n t a c t e d a n d
i n t e r v i e w e d a t t h e i r r e t a i l c o u n t e r.

2) Secondary data collection : As secondary data were not available

with shopkeepers as well as stockiest, so these were collected from
company records.

L I M I TATI O N S :
Every work has its own limitation. Limitations are extent to which the
process should not exceed. Limitations of this project are:

The project was constrained by time limit of two months.

Mindset of people may very depending upon their age, gender, income etc.
Getting appointment from the concern person was very difficult.
People mind set about the survey was an obstacle in acquiring complete information &

positive interaction.
Respondents were very busy in their schedule. So it was very time consuming for them
to answer all the questions properly.

CHAPTER-2
COMPANY PROFILE

T H E C O C A - C O L A C O M PAN Y

2.1: HISTORY
John Smyth Pemberton, a pharmacist, first introduced Coca-Cola in the year
1 8 8 6 i n At l a n t a , G e o r g i a w h e n h e c o n c o c t e d c a r a m e l - c o l o r e d s yr u p i n a t h r e e legged brass kettle in his back yard. He first distributed the product by
c a r r y i n g i t i n a j u g d o w n t h e s t r e e t t o J a c o b s P h a r m a c y a n d c u s t o m e r s b o u g h t
the drink for five cents at the soda fountain. Carbonated water was teamed
with the new syrup, whether b y accident or otherwise, producing a drink that
was proclaimed delicious and refreshing, a theme that continues to echo
t o d a y w h e r e v e r C o c a - C o l a i s e n j o ye d .
D r. P e m b e r t o n s p a r t n e r a n d b o o k - k e e p e r, F r a n k M . R o b i n s o n , s u g g e s t e d t h e
name and penned Coca-Cola in the unique flowing script that is famous
w o r l d w i d e e v e n t o d a y. H e s u g g e s t e d t h a t t h e t w o C s w o u l d l o o k w e l l i n
advertising. The first newspaper ad for Coca-Cola soon appeared in The
Atlanta Journal, inviting thirsty citizens to try the new and popular soda
fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on
store awnings, with the suggestions Drink added to inform passersby that
the new beverage was for soda fountain refreshment.
B y t h e y e a r 1 8 8 6 , s a l e s o f C o c a - C o l a a v e r a g e d n i n e d r i n k s p e r d a y. T h e f i r s t
y e a r , D r. P e m b e r t o n s o l d 2 5 g a l l o n s o f s yr u p , s h i p p e d i n b r i g h t r e d w o o d e n
kegs. Red has been a distinctive color associated with the soft drink ever
s i n c e . F o r h i s e f f o r t s , D r. P e m b e r t o n g r o s s e d $ 5 0 a n d s p e n t $ 7 3 . 9 6 o n
a d v e r t i s i n g . D r. P e m b e r t o n n e v e r r e a l i z e d t h e p o t e n t i a l o f t h e b e v e r a g e h e
created. He gradually sold portions of his
business to various partners and, just prior to his death in 1888, sold his
r e m a i n i n g i n t e r e s t i n C o c a - C o l a t o As a G . C a n d l e r , a n e n t r e p r e n e u r

f r o m At l a n t a . B y t h e y e a r 1 8 9 1 , M r. C a n d l e r p r o c e e d e d t o b u y a d d i t i o n a l
rights and acquire complete ownership and control of the Coca-Cola business.
W it h i n f o u r y e a r s , h i s m e r c h a n d i s i n g f l a i r h a d h e l p e d e x p a n d c o n s u m p t i o n o f
Coca-Cola

to

every

state

and

territory

after

which

he

liquidated

his

p h a r m a c e u t i c a l b u s i n e s s a n d f o c u s e d h i s f u l l a t t e n t i o n o n t h e s o f t d r i n k . Wi t h
h i s b r o t h e r, J o h n S . C a n d l e r , J o h n P e m b e r t o n s f o r m e r p a r t n e r F r a n k R o b i n s o n
a n d t w o o t h e r a s s o c i a t e s , M r. C a n d l e r f o r m e d a G e o r g i a c o r p o r a t i o n n a m e d t h e
C o c a - C o l a C o m p a n y. T h e t r a d e m a r k C o c a - C o l a , u s e d i n t h e m a r k e t p l a c e
since 1886, was registered in the United States Patent Office on Januar y 31,
1893.
T h e b u s i n e s s c o n t i n u e d t o g r o w, a n d i n 1 8 9 4 , t h e f i r s t s y r u p m a n u f a c t u r i n g
p l a n t o u t s i d e A t l a n t a w a s o p e n e d i n D a l l a s , Tex a s . O t h e r s w e r e o p e n e d i n
C h i c a g o , I l l i n o i s , a n d L o s An g e l e s , C a l i f o r n i a , t h e f o l l o w i n g y e a r. I n 1 8 9 5 ,
three

years

after

The

Coca-Cola

C o m p a n y s

incorporation,

M r.

Candler

announced in his annual report to share owners that Coca-Cola is now drunk
in every state and territory in the United States.
As

demand

for

Coca-Cola

increased,

the

Company

quickly

outgrew

its

facilities. A new building erected in 1898 was the first headquarters building
d e v o t e d e x c l u s i v e l y t o t h e p r o d u c t i o n o f s yr u p a n d t h e m a n a g e m e n t o f t h e
business. In the year 1919, the Coca-Cola Compan y was sold to a group of
i n v e s t o r s f o r $ 2 5 m i l l i o n . R o b e r t W. Woo d r u f f b e c a m e t h e P r e s i d e n t o f t h e
Compan y in the year 1923 and his more than sixty years of leadership took the
business to unsurpassed
heights of commercial success, making Coca-Cola one of the most recognized
and valued brands around the world.
2.2: HISTORY OF BOTTLING

10

Coca-Cola originated as a soda fountain beverage in 1886 selling for five

cents a glass. Early growth was impressive, but it was only when a strong
bottling system developed that Coca-Cola became the world-famous brand it is
t o d a y.
YEAR WISE HISTORY OF BOTTLING:
Yea r 1 8 9 4 : A m o d e s t s t a r t f o r a b o l d i d e a
I n a c a n d y s t o r e i n Vic k s b u r g , M i s s i s s i p p i , b r i s k s a l e s o f t h e n e w f o u n t a i n
b e v e r a g e c a l l e d C o c a - C o l a i m p r e s s e d t h e s t o r e ' s o w n e r , J o s e p h A. B i e d e n h a r n .
He began bottling Coca-Cola to sell, using a common glass bottle called a
H u t c h i n s o n . B i e d e n h a r n s e n t a c a s e t o As a G r i g g s C a n d l e r , w h o o w n e d t h e
C o m p a n y. C a n d l e r t h a n k e d h i m b u t t o o k n o a c t i o n . O n e o f h i s n e p h e w s a l r e a d y
had urged that Coca-Cola be bottled, but Candler focused on fountain sales.
Yea r 1 8 9 9 : T h e f i r s t b o t t l i n g a g r e e m e n t
Two y o u n g a t t o r n e y s f r o m C h a t t a n o o g a , Ten n e s s e e b e l i e v e d t h e y c o u l d b u i l d a
b u s i n e s s a r o u n d b o t t l i n g C o c a - C o l a . I n a m e e t i n g w i t h C a n d l e r , B e n j a m i n F.
Thomas and Joseph B. Whitehead obtained exclusive rights to bottle CocaC o l a a c r o s s m o s t o f t h e U n i t e d S t a t e s f o r a s u m o f o n e d o l l a r. A t h i r d
C h a t t a n o o g a l a w y e r, J o h n T. L u p t o n , s o o n j o i n e d t h e i r v e n t u r e .
Yea r s 1 9 0 0 - 1 9 0 9 : R a p i d g r o w t h
The three pioneer bottlers divided the country into territories and sold
bottling rights to local entrepreneurs. Their efforts were boosted by major
p r o g r e s s i n b o t t l i n g t e c h n o l o g y, w h i c h i m p r o v e d e f f i c i e n c y a n d p r o d u c t
q u a l i t y. B y 1 9 0 9 , n e a r l y 4 0 0 C o c a - C o l a b o t t l i n g p l a n t s w e r e o p e r a t i n g , m o s t

11

of them family-owned businesses. Some were open only during hot-weather

months when demand was high.
Yea r 1 9 1 6 : B i r t h o f t h e C o n t o u r B o t t l e
Bottlers worried that Coca-Cola's straight-sided bottle was easily confused
with imitators. A group representing the Company and bottlers asked glass
manufacturers to offer ideas for a distinctive bottle. A design from the Root
G l a s s C o m p a n y o f Ter r e H a u t e , I n d i a n a w o n e n t h u s i a s t i c a p p r o v a l . T h e
Contour Bottle became one of the few packages ever granted trademark status
b y t h e U . S . P a t e n t O f f i c e . Tod a y, i t i s o n e o f t h e m o s t r e c o g n i z e d i c o n s i n t h e
world.

Figure 2 Contour bottle design

In the 1920s: Bottling overtakes fountain sales
As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in
the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a

12

huge hit starting in 1923. A few years later, open-top metal coolers became the
forerunners of automated vending machines. By the end of the 1920s, bottle
sales of Coca-Cola exceeded fountain sales.
In the 1920s and 1930s: International expansion
L e d b y R o b e r t W. Woo d r u f f , c h i e f e x e c u t i v e o f f i c e r a n d c h a i r m a n o f t h e
Board, the Company began a major push to establish bottling operations
outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico,
B e l g i u m , I t a l y a n d S o u t h Af r i c a . B y t h e t i m e Wor l d War I I b e g a n , C o c a - C o l a
was being bottled in 44 countries.

In the 1940s: Post-war grow th

D u r i n g t h e w a r, 6 4 b o t t l i n g p l a n t s w e r e s e t u p a r o u n d t h e w o r l d t o s u p p l y t h e
troops. This followed an urgent request for bottling equipment and materials
f r o m G e n e r a l E i s e n h o w e r ' s b a s e i n N o r t h Af r i c a . M a n y o f t h e s e w a r - t i m e
plants were later converted to civilian use, permanently enlarging the bottling
system and accelerating the growth of the Company's worldwide business.
In the 1950s: Packaging innovations
For the first time, consumers had choices of Coca-Cola package size and typethe traditional 6.5 ounce Contour Bottle, or larger servings
including 10, 12 and 26 ounce versions. Cans were also introduced, becoming
generally available in 1960.
In the 1960s: Introduction of new brands

13

S p r i t e , F a n t a , F r e s c a a n d TAB j o i n e d b r a n d C o c a - C o l a i n t h e 1 9 6 0 s . M r. P i b b
a n d M e l l o Yel l o w e r e a d d e d i n t h e 1 9 7 0 s . T h e 1 9 8 0 s b r o u g h t d i e t C o k e a n d
C h e r r y C o k e , f o l l o w e d b y P o w e r A d e a n d F r u i t o p i a i n t h e 1 9 9 0 s . Tod a y s c o r e s
of other brands are offered to meet consumer preferences in local markets
around the world.
In the 1970s and 1980s: Consolidation to serve customers
A d v a n c e m e n t i n t e c h n o l o g y l e d t o g l o b a l e c o n o m y, r e t a i l c u s t o m e r s o f T h e
Coca-Cola Company merged and evolved into international mega chains. Such
customers required a new approach. In response, many small and medium-size
bottlers

consolidated

to

better

serve

giant

international

customers.

The

Company encouraged and invested in a number of bottler consolidations to

a s s u r e t h a t i t s l a r g e s t b o t t l i n g p a r t n e r s w o u l d h a v e c a p a c i t y t o l e a d t h e s ys t e m
in working with global retailers.
I n t h e 1 9 9 0 s : N e w a n d g r ow i n g m a r k e t s
Political and economic changes opened vast markets that were closed or
u n d e r d e v e l o p e d f o r d e c a d e s . Af t e r t h e f a l l o f t h e B e r l i n Wal l , t h e C o m p a n y
i n v e s t e d h e a v i l y t o b u i l d p l a n t s i n E a s t e r n E u r o p e . As t h e c e n t u r y c l o s e d ,
m o r e t h a n $ 1 . 5 b i l l i o n w a s c o m m i t t e d t o n e w b o t t l i n g f a c i l i t i e s i n Af r i c a .
21st Century: Coca-Cola today
T h e C o c a - C o l a b o t t l i n g s ys t e m g r e w u p w i t h r o o t s d e e p l y p l a n t e d i n l o c a l
communities. This heritage serves the Company well today as consumers seek
b r a n d s t h a t h o n o r l o c a l i d e n t i t y a n d t h e d i s t i n c t i v e n e s s o f l o c a l m a r k e t s . As
was true a century ago, strong locally based relationships between Coca-Cola
bottlers, customers and communities are the foundation on which the entire
business grows.

14

15

2 . 3 T h e C o c a - C o l a B o t t l e o v e r t h e Yea r s

F i g u r e 3 : T h e C o c a - C o l a B o t t l e o v e r t h e Yea r s
2.4 Production
Ingredients

Carbonated water
Sugar (sucrose or high-fructose corn

country of origin)

Caffeine

Phosphoric acid

Caramel color (E150d)

Natural flavorings

16

s yr u p d e p e n d i n g o n

A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from
sugar, approximately 10 teaspoons),50 mg of sodium, 0 grams fat, 0 grams
potassium, and 140 calories.
Formula of natural flavorings
Coca-Cola formula:
The exact formula of Coca-Cola's natural flavorings (but not its other
ingredients, which are listed on the side of the bottle or can) is a trade secret.
T h e o r i g i n a l c o p y o f t h e f o r m u l a w a s h e l d i n S u n Tr u s t B a n k ' s m a i n v a u l t i n
Atlanta

for

86

years.

Its

p r e d e c e s s o r,

the

Tr u s t

C o m p a n y,

was

the underwriter for the Coca-Cola Company's initial public offering in 1919.
O n D e c e m b e r 8 , 2 0 11 , t h e o r i g i n a l s e c r e t f o r m u l a w a s m o v e d f r o m t h e v a u l t a t
SunTrust Banks to a new vault containing the formula which will be on display
f o r v i s i t o r s t o i t s Wor l d o f C o c a - C o l a m u s e u m i n d o w n t o w n At l a n t a .
A popular myth states that only two executives have access to the formula,
with each executive having only half the formula The truth is that while CocaCola does have a rule restricting access to only two
executives, each knows the entire formula and others, in addition to the
prescribed duo, have known the formulation process.
On

February

11,

2011, Ira

Glass revealed

on

his PRI radio

s h o w, T h i s

American Life, that the secret formula to Coca-Cola had been uncovered in a
1 9 7 9 n e w s p a p e r. T h e f o r m u l a f o u n d b a s i c a l l y m a t c h e d t h e f o r m u l a f o u n d i n
P e m b e r t o n ' s d i a r y.

17

Logo design
The

famous

Coca-Cola

logo

was

created

by

John

Pemberton's

bookkeeper, Frank Mason Robinson, in 1885.Robinson came up with the name

and chose the logo's distinctive cursive script. The typeface used, known
as Spencerian script, was developed in the mid-19th century and was the
dominant form of formal handwriting in the United States during that period.
Robinson also played a significant role in early Coca-Cola
advertising. His promotional suggestions to Pemberton included giving away
thousands of free drink coupons and plastering the city of Atlanta with
publicity banners and streetcar signs.
2.5 Brand Portfolio:
This is a list of variants of Coca-Cola introduced around the world. In addition to the caffeine-free
version of the original, additional fruit flavors have been included over the years. Not included here
are versions of Diet Coke and Coca-Cola Zero; variant versions of those no-calorie colas can be found
at their respective articles.

18

Name

Launched Discontinued Notes

Coca-Cola

1886

The original version of Coca-Cola.

1983

The caffeine free version of Coca-Cola.

Caffeine-Free
Coca-Cola

Picture

Was available in Canada starting in

Coca-Cola
Cherry

1985

1996.

Called

"Cherry

Coca-Cola

(Cherry Coke)" in North America until

2006.

19

New
Coke/"Coca- 1985

2002

Cola II"

Still

available

in Yap and American

Samoa

Available in:
Australia, American Samoa, Austria,
Belgium,

Brazil,

China,

Denmark,Federation of Bosnia and

Herzegovina,
Coca-Cola
with Lemon

2001

2005

Finland,

France,

Germany, Hong Kong, Iceland, Korea,

Luxembourg,
Mongolia,
Caledonia,

Macau,
Netherlands,
New

Malaysia,
New
Zealand,

Norway, Runion, Singapore, Spain,

Switzerland, Taiwan, Tunisia, United
Kingdom, United States, and West
Bank-Gaza
Available in: Austria, Australia, China,
Finland, Germany, Hong Kong, New
Coca-Cola

2002;

Vanilla

2007

2005

Zealand, Malaysia, Sweden, United

Kingdom and United States. It was
reintroduced in June 2007 by popular
demand.

20

Coca-Cola
with Lime

Available in Belgium, Netherlands,

2005

Singapore,

Canada,

the

United

Kingdom, and the United States.

Was only available in New Zealand.

Coca-Cola
Raspberry

June 2005 End of 2005

Currently available in the United States

in Coca-Cola Freestyle fountain since
2009.

Coca-Cola
Black Cherry 2006
Vanilla

Middle
2007

of Was replaced by Vanilla Coke in June

2007

Only available in the United States,

Coca-Cola
Blk

2006

Beginning of France,
2008

Canada,

Czech

Republic,

Bosnia and Herzegovina, Bulgaria and

Lithuania

21

Coca-Cola
Citra

2006

Only

available

in

Bosnia

and

Herzegovina, New Zealand and Japan.

Was available in the United Kingdom

and Gibraltar for a limited time. In
Coca-Cola
Orange

Germany, Austria and Switzerland it's

2007

sold

under

Currently

the

label Mezzo

available

Mix.

in Coca-Cola

Freestyle fountain outlets in the United

States since 2009.

22

2.6: MANIFESTO FOR GROWTH

2 . 6 . 1 : VAL U E S :
Coca-Cola is guided by shared values that both the employees as individuals
and the Compan y will live b y; the values being:

LEADERSHIP: The courage to shape a better future

PAS S I O N : C o m m i t t e d i n h e a r t a n d m i n d

I N T E G R I T Y: B e r e a l

A C C O U N TAB I L I T Y: I f i t i s t o b e , i t s u p t o m e

C O L L A B O R ATI O N : L e v e r a g e c o l l e c t i v e g e n i u s

I N N O VATI O N : S e e k , i m a g i n e , c r e a t e , d e l i g h t

Q U A L I T Y: W h a t w e d o , w e d o w e l l
2.6.2: MISSION

To R e f r e s h t h e Wor l d . . . I n b o d y, m i n d , a n d s p i r i t

To I n s p i r e M o m e n t s o f O p t i m i s m . . . T h r o u g h o u r b r a n d s a n d o u r
actions

To C r e a t e Val u e a n d M a k e a D i f f e r e n c e . . . E v e r y w h e r e w e e n g a g e .

23

2 . 6 . 3 : V I S I O N F O R S U S TAI N A B L E G R O W T H

PROFIT: Maximizing return to shareowners while being mindful of

our overall responsibilities.

PEOPLE: Being a great place to work where people are inspired to

be the best they can be.

PORTFOLIO: Bringing to the world a portfolio of beverage brands

that anticipate and satisfy peoples Desires and needs.

PAR TN E R S : N u r t u r i n g a w i n n i n g n e t w o r k o f p a r t n e r s a n d b u i l d i n g
m u t u a l l o y a l t y.

PLANET:

Being

responsible

difference.

24

global

citizen

that

makes

H I N D U S TAN C O C A - C O L A B E V E R A G E S
P R I VATE L I M I T E D ( H C C B P L )
3 . 1 : AB O U T T H E C O M PAN Y
Coca-Cola was the leading soft drink brand in India until 1977, when it left
rather than reveal its formula to the Government and reduce its equity stake as
requir ed under the Foreign Regulation Act (FERA) which governed the
operations of foreign companies in India. Coca-Cola re-entered the Indian
m a r k e t o n 2 6 t h O c t o b e r 1 9 9 3 a f t e r a g a p o f 1 6 y e a r s , w i t h i t s l a u n c h i n Ag r a .
An agreement with the Parle Group gave the Company instant ownership of the
t o p s o f t d r i n k b r a n d s o f t h e n a t i o n . Wit h a c c e s s t o 5 3 o f P a r l e s p l a n t s a n d a
well set bottling network, an excellent base for rapid introduction of the
C o m p a n y s I n t e r n a t i o n a l b r a n d s w a s f o r m e d . T h e C o c a - C o l a C o m p a n y a c q u i r e d
soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were
floated by Parle, as these products had achieved a strong consumer base and
formed a strong brand image in Indian market during the re-entry of CocaCola in 1993.Thus these products became a part of range of products of the
C o c a - C o l a C o m p a n y.
In the new liberalized and deregulated environment in 1993, Coca-Cola made
i t s r e - e n t r y i n t o I n d i a t h r o u g h i t s 1 0 0 % o w n e d s u b s i d i a r y, H C C B P L , t h e I n d i a n
b o t t l i n g a r m o f t h e C o c a - C o l a C o m p a n y. H o w e v e r , t h i s w a s b a s e d o n n u m e r o u s
commitments and stipulations which the Company agreed to implement in due
course. One such major commitment was that, the Hindustan Coca-Cola
Holdings

would

divest

49%

of

its

shareholding

shareholders by June 2002.

25

in

favor

of

resident

Coca-Cola is made up of 7000 local emplo yees, 500 managers, over 60

manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17
Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract
Packers that facilitate the manufacture process of a range of products for the
c o m p a n y. I t a l s o h a s a s u p p o r t i n g d i s t r i b u t i o n n e t w o r k c o n s i s t i n g o f 7 0 0 , 0 0 0
r e t a i l o u t l e t s a n d 8 0 0 0 d i s t r i b u t o r s . Al m o s t a l l g o o d s a n d s e r v i c e s r e q u i r e d t o
c a t e r t o t h e I n d i a n m a r k e t a r e m a d e l o c a l l y, w i t h h e l p o f t e c h n o l o g y a n d s k i l l s
w i t h i n t h e C o m p a n y. T h e c o m p l e x i t y o f t h e I n d i a n m a r k e t i s r e f l e c t e d i n t h e
distribution fleet which includes different modes of distribution, from 10tonne trucks to open-bay three wheelers that can navigate through narrow
alleyways of Indian cities and trademarked tricycles and pushcarts.
Think local, act local, is the mantra that Coca-Cola follows, with punch
lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola
for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24%
growth

seen

in

urban

India.

Between

2001

and

2003,

the

per

capita

consumption of cold drinks doubled due to the launch of the new packaging of
200 ml returnable glass bottles which were made available at a price of Rs.5
p e r b o t t l e . T h i s n e w m a r k e t a c c o u n t e d f o r o v e r 8 0 % o f I n d i a s n e w C o c a - C o l a
d r i n k e r s . At C o c a - C o l a , t h e y h a v e a l o n g s t a n d i n g b e l i e f t h a t e v e r y o n e w h o
touches their business should benefit, thereby inducing them to uphold these
values, enabling the Compan y to achieve success, recognition and loyalty
worldwide.

26

F I G U R E 5 : L O C ATI O N S O F C O B O , F O B O & C O N T R A C T PAC K A G I N G I N

INDIA
3.2: MANIFESTO FOR GROWTH
3 . 2 . 1 : VAL U E S
The values that the emplo yees in the Company are expected to keep up to and
work by regularly are as follows:

27

L E A D E R S H I P : To t a k e a n i n i t i a t i v e a n d l e a d , m o t i v a t e a n d d r i v e t h e
team with energy and zeal, to deliver outstanding results.

I N N O VATI O N : To c o n t i n u o u s l y s t r i v e f o r p r o g r e s s a n d r e a c h t h e n e x t
level of excellence in everything we do.

PAS S I O N : To b e d e e p l y c o m m i t t e d a n d d i s p l a y d r i v e a n d e n e r g y i n t h e
quest to deliver outstanding performance.

T E A M W O R K : To u n i t e f o r g r e a t e r s t r e n g t h a n d w o r k c o l l e c t i v e l y a s a
group towards the achievement of common goals.

O W N E R S H I P : To t h i n k a n d a c t l i k e o w n e r s a t a l l l e v e l s ; t o h a v e
decisions taken at the lowest appropriate level.

A C C O U N TAB I L I T Y: To b e i n d i v i d u a l l y a n d t r a n s p a r e n t l y a c c o u n t a b l e
to our colleagues for delivering agreed targets and goals.

3 . 2 . 2 : V I S I O N F O R S U S TAI N A B L E G R O W T H
To p r o v i d e e x c e p t i o n a l s t r a t e g i c l e a d e r s h i p i n t h e C o c a - C o l a I n d i a
S ys t e m - r e s u l t i n g i n c o n s u m e r a n d c u s t o m e r p r e f e r e n c e a n d l o y a l t y, t h r o u g h
C o c a - C o l a s c o m m i t m e n t t o t h e m , a n d i n a h i g h l y p r o f i t a b l e C o c a - C o l a
Corporate branded beverages system.
3.2.3: MISSION

28

To c r e a t e c o n s u m e r p r o d u c t s , s e r v i c e s a n d c o m m u n i c a t i o n s , c u s t o m e r
s e r v i c e a n d b o t t l i n g s ys t e m s t r a t e g i e s , p r o c e s s e s a n d t o o l s i n o r d e r t o c r e a t e
competitive advantage and deliver superior value to;

Consumers as a superior beverage experience

Consumers as an opportunity to grow profits through the use of

finished drinks

Bottlers as an opportunity to grow profits in volumes

Bottlers as a trademark enhancement and positive economic value

added

Suppliers

as

an

opportunity

to

make

reasonable

profits

when

creating real value-added in an environment of system-wide team work,

f l e x i b l e b u s i n e s s s ys t e m a n d c o n t i n u o u s i m p r o v e m e n t

Indian society in the form of a contribution to economic and social

development.

3.2.4: QUALITY POLICY

To e n s u r e c u s t o m e r d e l i g h t , w e c o m m i t t o q u a l i t y i n o u r t h o u g h t s , d e e d s a n d
actions by continually improving our processesEvery time.

29

3 . 3 : O R G A N I Z ATI O N S T R U C T U R E O F C O C A - C O L A I N I N D I A

30

F I G U R E 6 : O R G A N I Z ATI O N S T R U C T U R E I N C O C A - C O L A , I N I D A

AR
GeGe
g
M
/i
Ao
On
D
V
i
c

31

F I G U R E 7 : O R G A N I Z ATI O N S T R U C T U R E I N C O C A - C O L A , I N D I A
3 . 4 : O R G A N I Z ATI O N S T R U C T U R E O F T H E S A L E S D E PAR T M E N T I N
HCCBPL:

32

F I G U R E 8 : O R G A N I Z ATI O N S T R U C T U R E O F T H E S A L E S D E PAR T M E N T

3 . 5 : M A N U FAC T U R I N G U N I T O F H C C B P L
The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest
p l a n t a n d o n e o f t h e b o t t l i n g o p e r a t i o n s o w n e d b y t h e c o m p a n y. T h e P l a n t h a s
one PET line which has the capacity of yielding 209 bottles, per minute, two
RGB (Returnable glass bottles) lines which yields 600 bottles per minute each
and one Juice line which yield 155 bottles per minute. It caters to the whole of
South Karnataka through a network of more than 80 distributors. There are
three depots in Bangalore; North Depot, East Depot and Mega Depot.

33

Outlets

Outlets

FIGURE

9:

Distributors

CHAIN

FOLLOWED

DISTRIBUTION

34

Sales and Distribution Operations

FROM

M A N U FAC T U R E

TO

3 . 6 : M A N U FAC T U R I N G P R O C E S S AT H C C B P L

F I G U R E 1 0 : M A N U FAC T U R I N G P R O C E S S
The manufacturing of the products of Coca-Cola involves the following steps:

Wat e r i s r e c e i v e d f r o m t h e R i v e r C a u v e r y a n d i t p a s s e s t h r o u g h t h e
water treatment plant, further passing through the sand filter and the activated
c a r b o n f i l t e r , s o a s t o a t t a i n p u r e c l e a n s e d w a t e r.

In the syrup room, the concentrate received from another bottling

p l a n t s i t u a t e d a t P u n e , i s b l e n d e d w i t h t h e s u g a r s yr u p

35

O n c e b o t h t h e w a t e r a n d t h e f i n a l s yr u p a r e r e a d y, t h e y a r e b o t h
mixed together and sent to the carbonator section where Carbon Dioxide is
added to the mixture to form the final product.

O n t h e o t h e r h a n d , s i m u l t a n e o u s l y, t h e r e t u r n a b l e g l a s s b o t t l e s a r e
depalletized, inspected and washed for the purpose of filling in the final
product in it. This step does not take place in the PET bottle line as the
bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of

RGB)/ capped (in case of PET bottles), labeled and cased in order to be sent
into the warehouse for distribution.
3 . 7 : B U S I N E S S P L A N M O D E L AT H C C B P L

36

C onsum ers

Ma nufac t ures f ini shed B ot t le s/C ans/ F ounta i n Syr up

Manufa ct ure s Conc ent ra te , B ever age base a nd Syr up

37

F I G U R E 11: B U S I N E S S P L A N M O D E L
3.8: DISTRIBUTION NETWORK
HCCBPL has a wide and well managed network of salesmen appointed for
taking up the responsibility of distribution of products to diverse parts of the
cities. The distribution channels are constructed in such a way that the demand
of customers is fulfilled at the right place and the right time when it is needed
Regi on al Bot tl ers
CO BO / FO BO

by them.
C ust ome rs

A typical distribution chain at HCCBPL would be:

Coc a- Col a I ndi a

di visi on, Gurgaon

P r o d u c t i o n - - - P l a n t War e h o u s e - - - D e p o t War e h o u s e - - - D i s t r i b u t i o n
War e h o u s e - - - R e t a i l S t o c k - - - R e t a i l S h e l f - - - C o n s u m e r
The customers of the Company are divided into different categories and
different routes, and every salesman is assigned to one particular route, which
is to be followed by him on a daily basis. A detailed and well organized
d i s t r i b u t i o n s ys t e m c o n t r i b u t e s t o t h e e f f i c i e n c y o f t h e s a l e s m e n . I t a l s o l e a d s
to low costs, higher sales and higher efficiency thereby leading to higher
profits to the firm.
3.8.1: DISTRIBUTION ROUTES
The various routes formulated by HCCBPL for distribution of products are as
follows:

Key

Ac c o u n t s :

The

customers

in

this

category

collectively

c o n t r i b u t e a l a r g e c h u n k o f t h e t o t a l s a l e s o f t h e C o m p a n y. I t b a s i c a l l y
consists of organizations that buy large quantities of a product in one single
transaction. The Company provides goods to these customers on credit,
payments being made by them after a certain period of time i.e. either a month
of half a month.

38

Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

Future Consumption: This route consists of outlets of Coca-Cola

products, wherein a considerable amount of stock is kept in order to use for
future consumption. The stock does not exhaust within a day or two, instead as
and when required stocks are stacked up by them so as to avoid shortage or
non-availability of the product.
Examples: Departmental stores, Super markets etc.

Immediate Consumption: The outlets in this route are those which

require stocks on a daily basis. The stocks of products in these outlets are not
stored for future use instead, are exhausted on the same day and might run a
little into the next day i.e. the products are consumed at a fast pace.
Examples: Small sized bars and restaurants, educational institutions etc.

General: Under this route, all the outlets that come in a particular
area

or

an

area

along

with

its

neighboring

areas

are

catered

to.

The

consumption period is not taken into consideration in this particular route.

3.8.2: DISTRIBUTION SYSTEM

Direct distribution: In direct distribution, the bottling unit or the

b o t t l e r p a r t n e r h a s d i r e c t c o n t r o l o v e r t h e a c t i v i t i e s o f s a l e s , d e l i v e r y, a n d
merchandising and local account management at the store level.

Indirect

distribution:

In

indirect

distribution,

an

organization

which is not part of the Coca-Cola system has control on one or more of the
distribution

elements

(Sales,

d e l i v e r y,

management)

39

merchandising

and

local

account

Merchandising:

Merchandising

means

communication

with

the

consumer at the point of purchase to convey product benefit, value and

Q u a l i t y. S a l e s p e o p l e a n d d e l i v e r y p e r s o n n e l b o t h h a v e t h i s r e s p o n s i b i l i t y. I n
certain locations special teams who go into business locations to specifically
merchandise our products.
3 . 8 . 3 : D E PAR T M E N T S I N V O LVE D I N T H E D I S T R I B U T I O N P R O C E S S
The Distribution process mainly consists of three departments:

Distribution Department: It appoints distributors and establishes a

distribution network, processes approved sale orders and prepares invoices,
arranges

logistics

and

ship

products,

co-ordinates

with

distributors

for

collections and monitors distribution stocks and their set-up.

Finance Department: It checks credit limits and approves sales

orders in compliance with the credit policy followed by the firm, records
collections from distributors, periodically reconciles outstanding balances
from distributors, obtains balance confirmation from distributors and follows
up outstanding balances.

S h i p p i n g o r War e h o u s i n g D e p a r t m e n t :

It dispatches goods as per

approved by order, ensures that stocks are dispatched on a FIFO basis, ensures
p h ys i c a l c o n t r o l o v e r l o a d o u t a r e a a n d u p d a t e s w a r e h o u s e s t o c k r e c o r d s i n a
t i m e l y m a n n e r.
3 . 9 : S W O T AN A LYS I S O F H C C B P L
3.9.1: STRENGTHS

40

DISTRIBUTION

NETWORK:

The

Company

has

strong

and

reliable distribution network. The network is formed on the basis of the time
of consumption and the amount of sales yielded by a particular customer in
one transaction. It has a distribution network consisting of a number of
efficient

salesmen,

700,000

retail

outlets

and

8000

distributors.

The

distribution fleet includes different modes of distribution, from 10-tonne

t r u c k s t o o p e n - b a y t h r e e w h e e l e r s t h a t c a n n a v i g a t e t h r o u g h n a r r o w a l l e y w a ys
of Indian cities and trademarked tricycles and pushcarts.

STRONG BRANDS: The products produced and marketed by the

Company have a strong brand image. People all around the world recognize the
b r a n d s m a r k e t e d b y t h e C o m p a n y. S t r o n g b r a n d n a m e s l i k e S p r i t e , F a n t a ,
Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola
Company as a whole. The red and white Coca-Cola is one of the very few
things that are recognized by people all over the world. Coca-Cola has been
named the world's top brand for a fourth consecutive year in a survey by
consultancy Interbrand. It was estimated that the Coca-Cola brand was worth
$70.45billion. (http://news.bbc.co.uk/1/hi/business/4706275.stm)

L O W C O S T O F O P E R ATI O N S : T h e p r o d u c t i o n , m a r k e t i n g a n d
distribution

s ys t e m s

are

very

efficient

due

to

forward

planning

and

maintenance of consistency of operations which minimizes wastage of both

time and resources leads to lowering of costs.

3.9.2: WEAKNESSES

LOW EXPORT LEVELS: The brands produced by the company are

b r a n d s p r o d u c e d w o r l d w i d e t h e r e b y m a k i n g t h e e x p o r t l e v e l s v e r y l o w. I n
India, there exists a major controversy concerning pesticides and other

41

harmful chemicals in bottled products including Coca-Cola. In 2003, the

Centre for Science and Environment (CSE), a non-governmental organization
in New Delhi, said aerated waters produced by soft drinks manufacturers in
India, including multinational giants PepsiCo and Coca-Cola, contained toxins
i n c l u d i n g l i n d a n e , D D T, m a l a t h i o n a n d c h l o r p y r i f o s - p e s t i c i d e s t h a t c a n
contribute to cancer and a breakdown of the immune system. Therefore, people
abroad, are apprehensive about Coca-Cola products from India.

S M A L L S C A L E S E C T O R R E S E R VATI O N S L I M I T AB I L I T Y T O
INVEST

AN D

AC H I E V E

ECONOMIES

OF

SCALE:

The

C o m p a n y s

operations are carried out on a small scale and due to Government restrictions
and red-tapism, the Company finds it very difficult to invest in technological
advancements and achieve economies of scale.
3.9.3: OPPORTUNITIES

LARGE DOMESTIC MARKETS: The domestic market for the

products of the Company is very high as compared to any other soft drink
m a n u f a c t u r e r. C o c a - C o l a I n d i a c l a i m s a 5 8 p e r c e n t s h a r e o f t h e s o f t d r i n k s
market; this includes a 42 per cent share of the cola market. Other products
account for 16 per cent market share, chiefly led by Limca. The company
appointed 50,000 new outlets in the first two months of this year, as part of its
plans to cover one lakh outlets for the coming summer season and this also
covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the
beverage market.

EXPORT POTENTIAL:

The

Company can

come

up

with

new

products which are not manufactured abroad, like Maaza etc and export them
to foreign nations. It can come up with strategies to eliminate apprehension
from the minds of the people towards the Coke products produced in India so
that there will be a considerable amount of exports and it is yet another

42

opportunity to broaden future prospects and cater to the global markets rather
than just domestic market.

H I G H E R I N C O M E AM O N G P E O P L E : D e v e l o p m e n t o f I n d i a a s a
whole has lead to an increase in the per capita income thereby causing an
increase in disposable income. Unlike olden times, people now have the power
of buying goods of their choice without having to worr y much about the flow
of their income. The beverage industry can take advantage of such a situation
and enhance their sales.
3 . 9 . 4 : T H R E ATS

I M P O R T S : As I n d i a i s d e v e l o p i n g a t a f a s t p a c e , t h e p e r c a p i t a
income has increased over the years and a majority of the people are educated,
the export levels have gone high. People understand trade to a large extent and
the demand for foreign goods has increased over the years. If consumers shift
onto imported beverages rather than have beverages manufactured within the
c o u n t r y, i t c o u l d p o s e a t h r e a t t o t h e I n d i a n b e v e r a g e i n d u s t r y a s a w h o l e i n
t u r n a f f e c t i n g t h e s a l e s o f t h e C o m p a n y.

TAX AN D R E G U L ATO R Y S E C T O R : T h e t a x s ys t e m i n I n d i a i s
accompanied by a variety of regulations at each stage on the consequence from
production to consumption. When a license is issued, the production capacity
is mentioned on the license and every time the production capacity needs to be
increased, the license poses a problem. Renewing or updating a license every
now and then is difficult. Therefore, this can limit the growth of the Company
and pose problems.

SLOWDOWN IN RURAL DEMAND: The rural market may be

alluring but it is not without its problems: Low per capita disposable incomes
that is half the urban disposable income; large number of daily wage earners,

43

acute dependence on the vagaries of the monsoon; seasonal consumption

linked to harvests and festivals and special occasions; poor roads; power
p r o b l e m s ; a n d i n a c c e s s i b i l i t y t o c o n v e n t i o n a l a d v e r t i s i n g m e d i a . Al l t h e s e
p r o b l e m s m i g h t l e a d t o a s l o w d o w n i n t h e d e m a n d f o r t h e c o m p a n y s p r o d u c t s .
3.10: COMPETITORS TO HCCBPL
The competitors to the products of the company mainly lie in the nonalcoholic beverage industry consisting of juices and soft drinks.
The key competitors in the industry are as follows:

PepsiCo: The PepsiCo challenge, to keep up with archrival, the

C o c a - C o l a C o m p a n y n e v e r e n d s f o r t h e Wor l d ' s # 2 , c a r b o n a t e d s o f t - d r i n k
m a k e r. T h e c o m p a n y' s s o f t d r i n k s i n c l u d e P e p s i , M o u n t a i n D e w, a n d S l i c e .
C o l a i s n o t t h e c o m p a n y' s o n l y b e v e r a g e ; P e p s i C o s e l l s Tr o p i c a n a o r a n g e j u i c e
b r a n d s , G a t o r a d e s p o r t s d r i n k , a n d Aq u a f i n a w a t e r. P e p s i C o a l s o s e l l s D o l e
j u i c e s a n d L i p t o n r e a d y - t o - d r i n k t e a . P e p s i C o a n d C o c a - C o l a h o l d t o g e t h e r, a
market share of 95% out of which 60.8% is held by Coca-Cola and the rest
belongs to Pepsi.

Nestl: Nestle does not give that tough a competition to Coca-Cola

as it mainly deals with milk products, Baby foods and Chocolates. But the iced
tea that is Nestea which has been introduced into the market by Nestle
provides

considerable

amount

of

competition

to

the

products

of

the

C o m p a n y. I c e d t e a i s o n e o f t h e c l o s e s t s u b s t i t u t e s t o t h e C o l a s a s i t i s a t h i r s t
quencher and it is healthier when compared to fizz drinks. The flavored milk
products also have become substitutes to the products of the company due to
growing health awareness among people.

44

Dabur: Dabur in India, is one of the most trusted brands as it has

been operating ever since times and people have laid all their trust in the
C o m p a n y a n d t h e p r o d u c t s o f t h e C o m p a n y. Ap a r t f r o m f o o d p r o d u c t s , D a b u r
has introduced into the market Real Juice which is packaged fresh fruit juice.
These products give a strong competition to Maaza and the latest product
Minute Maid Pulpy Orange.

PRODUCTS

The Coca-Cola Company offers a wide range of products to the customers

i n c l u d i n g b e v e r a g e s , f r u i t j u i c e s a n d b o t t l e d m i n e r a l w a t e r. T h e C o m p a n y i s
a l w a ys l o o k i n g t o i n n o v a t e a n d c o m e u p w i t h , e i t h e r c o m p l e t e n e w p r o d u c t s o r
new ways to bottle or pack the existing drinks. The Coca-Cola Compan y has a
wide range of products out of which the following products are marketed by
HCCBPL:

330 ml

500ml

45

Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml and

1 l i t r e + 2 0 0 m l f r e e P E T b o t t l e s a n d t h e n e w l y i n t r o d u c e d 2 0 0 m l Tet r a P a c k

200 & 250ml

600ml

200ml tetra

Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles

1lt

S c h w e p p e s S o d a Wat e r : 3 0 0 m l R G B 3 3 0 m l c a n s , 1 l t P E T b o t t l e s

46

330 ml cans, 1lt pet

300ml

S c h w e p p e s M i n e r a l Wat e r : 3 3 0 m l c a n s 7 5 0 m l P E T b o t t l e s

330ml cans

750 ml

S c h w e p p e s Ton i c Wat e r : 3 5 5 m l c a n

47

355 ml

1lt

K i n l e y S o d a Wat e r : 3 0 0 m l r e t u r n a b l e g l a s s b o t t l e s , 5 0 0 + 1 0 0 m l f r e e
and 1.5 litre PET bottles.

48

300,1.5lt..

49

CHAPTER-3
REVIEW OF LITERATURE

5.1 SALES PROMOTION

5.1.1 INTRODUCTION TO SALES PROMOTION:

50

MEANING:
Sales promotion includes those sales activities, which supplement personnel
selling and advertising. It is a direct inducement that offers extra value or
incentive

for

the

product.

This

incentive

may

be

directed

towards

the

consumer or the trade.

In other words, promotion stimulates the customer to make prompt
decision to purchase the product. It even influences them or prevents them
from switching over to brands.
Nature of the Sales Promotion:
Marketing - Sales promotion
Sales promotion is the process of persuading a potential customer to buy the
product.

Sales promotion is designed to be used as a short-term tactic to

b o o s t s a l e s i t i s n o t r e a l l y d e s i g n e d t o b u i l d l o n g - t e r m c u s t o m e r l o y a l t y.
Some sales promotions are aimed at consumers.

Others are targeted

a t i n t e r m e d i a r i e s ( s u c h a s a g e n t s a n d w h o l e s a l e r s ) o r a t t h e f i r m s s a l e s f o r c e .
When undertaking a sales promotion, there are several factors that a
business must take into account:
What does the promotion cost will the resulting sales boost justify the
investment?
Is the sales promotion consistent with the brand image?

promotion that heavily discounts a product with a premium price might do

some long-term damage to a brand
W il l t h e s a l e s p r o m o t i o n a t t r a c t c u s t o m e r s w h o w i l l c o n t i n u e t o b u y t h e
product once the promotion ends, or will it simply attract those customers who
are always on the look-out for a bargain?
There are many methods of sales promotion, including:

51

Money off coupons customers receive coupons, or cut coupons out of

newspapers or a products packaging that enables them to buy the product next
time at a reduced price
Competitions buying the product will allow the customer to take part in a
chance to win a prize
Discount vouchers a voucher (like a money off coupon)
Free gifts a free product when buy another product
Point of sale materials e.g. posters, display stands ways of presenting the
product in its best way or show the customer that the product is there.
L o y a l t y c a r d s e . g . N e c t a r a n d Ai r M i l e s ; w h e r e c u s t o m e r s e a r n p o i n t s f o r
bu ying certain goods or shopping at certain retailers that can later be
e x c h a n g e d f o r m o n e y, g o o d s o r o t h e r o f f e r s
Lo yalty cards have recently become an important form of sales
promotion.

They encourage the customer to return to the retailer by giving

them discounts based on the spending from a previous visit. Loyalty cards can
offset the discounts they offer by making more sales and persuading the
customer to come back.

They also provide information about the shopping

h a b i t s o f c u s t o m e r s w h e r e d o t h e y s h o p , w h e n a n d w h a t d o t h e y b u y? T h i s i s
very valuable marketing research and can be used in the planning process for
new and existing products.
Sales promotion is one of the four aspects of promotional mix
three

parts

of

the promotional

mix are advertising, personal

(The other
selling,

and

publicity/public relations.) Media and non-media marketing communication

52

are emplo yed for a pre-determined, limited time to increase consumer demand,
s t i m u l a t e m a r k e t d e m a n d o r i m p r o v e p r o d u c t a v a i l a b i l i t y.
Examples:Include contests, coupons, freebies, loss leaders, point
of purchase displays, premiums, prizes, product samples, and rebates
Sales

promotions

can

be

directed

at

the customer,

sales

staff,

or distribution channel members (such as retailers).

Sales promotions targeted at the consumer are called consumer
sales promotions.
Sales promotions targeted at retailers and wholesale are
called trade

sales

promotions.

Many

consider

some

sale

promotions,

particularly ones with unusual methods, gimmicks.

Sales promotion includes several communications activities that attempt to
provide added value or incentives to consumers, wholesalers, retailers, or
other organizational customers to stimulate immediate sales. These efforts can
attempt to stimulate product interest, trial, or purchase. Examples of devices
used

in

sales

promotion

include

coupons,

samples,

premiums,

purchase (POP) displays, contests, rebates, and sweepstakes.

S a l e s P romo t i o n

Sales Promotion

Consumer sales

Tr a d e s a l e s

promotions

promotions

5.1.2 Consum er sales prom otion techniques

53

point-of-

Price deal: A temporary reduction in the price, such as happy hour

Lo yal Reward Program: Consumers collect points, miles, or credits for
p u r c h a s e s a n d r e d e e m t h e m f o r r e w a r d s . Two f a m o u s e x a m p l e s a r e P e p s i
S t u f f a n d AA d v a n t a g e .
Cents-off deal: Offers a brand at a lower price. Price reduction may be a
percentage marked on the package.
Price-pack deal: The packaging offers a consumer a certain percentage more
of the product for the same price (for example, 25 percent extra).
Coupons: coupons have become a standard mechanism for sales promotions.
Loss leader: the price of a popular product is temporarily reduced in order to
stimulate other profitable sales
Free-standing insert (FSI): A coupon booklet is inserted into the local
n e w s p a p e r f o r d e l i v e r y.
On-shelf couponing: Coupons are present at the shelf where the product is
available.
Checkout dispensers: On checkout the customer is given a coupon based on
products purchased.
On-line couponing: Coupons are available online. Consumers print them out
and take them to the store.
Mobile couponing: Coupons are available on a mobile phone. Consumers show
the offer on a mobile phone to a salesperson for redemption.
Online interactive prom otion gam e: Consumers play an interactive game
associated with the promoted product. See an example of the Interactive
I n t e r n e t Ad f o r t o m a t o k e t c h u p .
Rebates: Consumers are offered money back if the receipt and barcode are
m a i l e d t o t h e p r o d u c e r.
Contests/sweepstakes/games: The consumer is automatically entered into the
event by purchasing the product.
P o i n t - o f - s a l e d i s p l a ys : Aisle interrupter: A sign that juts into the aisle from the shelf.

54

Dangler: A sign that sways when a consumer walks b y it.

Dump bin: A bin full of products dumped inside.
Glorifier: A small stage that elevates a product above other products.
Wob b l e r : A s i g n t h a t j i g g l e s .
Lipstick Board: A board on which messages are written in crayon.
Necker: A coupon placed on the 'neck' of a bottle.
Y E S u n i t : " yo u r e x t r a s a l e s p e r s o n " i s a p u l l - o u t f a c t s h e e t .
Electroluminescent: Solar-powered, animated light in motion.
Kids eat free specials: Offers a discount on the total dining bill by offering 1
free kids meal with each regular meal purchased.
Tra d e s a l e s p r o m o t i o n t e c h n i q u e s
Tra d e a l l o w a n c e s : s h o r t t e r m i n c e n t i v e o f f e r e d t o i n d u c e a r e t a i l e r t o s t o c k u p
on a product.
D e a l e r l o a d e r : An i n c e n t i v e g i v e n t o i n d u c e a r e t a i l e r t o p u r c h a s e a n d d i s p l a y
a product.
Tra d e c o n t e s t : A c o n t e s t t o r e w a r d r e t a i l e r s t h a t s e l l t h e m o s t p r o d u c t .
Point-of-purchase displays : Used to create the urge of "impulse" bu ying and
selling your product on the spot.
Tra i n i n g p r o g r a m s : d e a l e r e m p l o y e e s a r e t r a i n e d i n s e l l i n g t h e p r o d u c t .
P u s h m o n e y : a l s o k n o w n a s " s p l i f f s " . An e x t r a c o m m i s s i o n p a i d t o r e t a i l
employees to push products.
Trade discounts (also called functional discounts): These are pa yments to
distribution channel members for performing some function.

5.2 Sales Prom otion Strategies:

There

are

three

types

of

sales

promotion

a combination of the two.

55

strategies: Push, Pull,

or

A push strategy involves convincing trade intermediary channel members to

"push" the product through the distribution channels to the ultimate consumer
via promotions and personal selling efforts. The company promotes the
product through a reseller who in turn promotes it to yet another reseller or
t h e f i n a l c o n s u m e r. Tr a d e - p r o m o t i o n o b j e c t i v e s a r e t o p e r s u a d e r e t a i l e r s o r
wholesalers to carry a brand, give a brand shelf space, promote a brand in
a d v e r t i s i n g , a n d / o r p u s h a b r a n d t o f i n a l c o n s u m e r s . Typ i c a l t a c t i c s e m p l o y e d
in push strategy are: allowances, buy-back guarantees, free trials, contests,
s p e c i a l t y a d v e r t i s i n g i t e m s , d i s c o u n t s , d i s p l a ys , a n d p r e m i u m s .

A pull strategy attempts to get consumers to "pull" the product from the
manufacturer

through

the

marketing

channel.

The

company

focuses

its

marketing communications efforts on consumers in the hope that it stimulates

interest and demand for the product at the end-user level. This strategy is
often employed if distributors are reluctant to carr y a product because it gets

56

as many consumers as possible to go to retail outlets and request the product,

thus pulling it through the channel. Consumer-promotion objectives are to
entice consumers to try a new product, lure customers away from competitors
products, get consumers to "load up" on a mature product, hold & reward lo yal

c u s t o m e r s , a n d b u i l d c o n s u m e r r e l a t i o n s h i p s . Typ i c a l t a c t i c s e m p l o y e d i n p u l l
strategy

are:

advertising

samples,
specialties,

coupons,
lo yalty

cash

refunds

and

programs/patronage

rebates,
rewards,

premiums,
contests,

sweepstakes, games, and point-of-purchase (POP) displays.

Car dealers often provide a good example of a combination strategy. If you

pay attention to car dealers' advertising, you will often hear them speak of
cash-back offers and dealer incentives.
S U R VE Y AN A LYS I S
T H E S U R V E Y WAS C O N D U C T E D I N D I F F E R E N T L O C ATI O N O F
H Y D E R A B A D . A T O TAL S U R VE Y O F 2 0 0 O U T L E T S WAS C O N D U C T E D .
O B S E R VATI O N
1. I visited about 200 outlets.
2. Out of 200 shops covered in different areas, I focused on covering
different shops according to location, so that I can know where coca-cola
p r o d u c t s h a v e t h e b e s t p e n e t r a t i o n . Am o n g t h e s h o p c o v e r e d , 1 7 % w e r e o n
the chaurastha, 35% were on the main road, 28% in the market and 20%
were near a residential area.

57

3.

I assigned the various shops covered into different categories. The

v a r i o u s c a t e g o r i e s c o v e r e d w e r e G r o c e r y, C o n f e c t i o n a r y , B a k e r y, J u i c e
S h o p s , I c e C r e a m p a r l o r s , R e s t a u r a n t , F o o d P o i n t s , P.C . O , D a i r y, a n d P a n
Shops.

CHAPTER-4
DATA ANALYSIS & INTERPRETATION

58

6.3 FINDINGS
1 . W h i c h t yp e o f p r o m o t i o n s d o y o u l i k e ?

S.No

Particulars
Total
1 Volume Linked Schemes
25
2 Cash Discount Schemes
65
Gifts
on
Target
3 Achievement
5
70
60
50
40
30
20
10
0

Percentage
25%
65%
5%

Total

59

Interpretation:
As per the above question most of the retailers like cash discounts on their
e a c h p u r c h a s e f r o m t h e c o m p a n y. I n m y s u r v e y m o s t o f t h e o u t l e t s a r e g r o c e r i e s
so their sale is limited when there is no need of more volume they dont want
other two schemes.
So as per my study if company wants to launch scheme better it
should be a cash discount type.

2. Are you receiving sufficient display material from coke?

S.No

Particulars
1 Yes
2 No

Total
30
70

Percentage
25%
70%

80
70
60
50
40

Total

30
20
10
0
Yes

No

Interpretation:

60

For this question most of the retailer s complaining about they are not
receiving any kind of display materials very few are satisf ying with our display
m a t e r i a l s s o c o m p a n y s h o u l d c o n c e n t r a t e a b o u t d i s p l a y.

3. Which type of premiums do you like?

S.No
1
2
3
4

Particulars
Luggage bags
Kitchen ware
Accessories
Cash Voucher

Total

Percentage
5%
5%
2%
88%

5
5
2
88

100
90
80
70
60
50
40
30
20
10
0

Total

61

Interpretation:
L i k e a s a 1 s t q u e s t i o n m o s t o f t h e r e t a i l e r s l i k e C a s h Vou c h e r s o n l y a f t e r t h a t
they preferred Luggage bags and Kitchenware.

4. Are you getting all the discounts or prizes as per company

promised?

S.No

Particulars
1 Yes
2 No

Total
30
70

Percentage
25%
70%

80
70
60
50
40

Total

30
20
10
0
Yes

No

Interpretation:

62

Maximum retailers said no.

Example: Consumer having RGB in outlet and he get something on
backside of the crown that is not getting from the company this was the
m a j o r c o m p l a i n t f r o m t h e r e t a i l e r.

5. Comparing with others how coke promotion is plans?

S.No
1
2
3
4

Particulars
Very Good
Good
Bad
Worst

Total
10
5
12
73

Percentage
5%
5%
2%
88%

80
70
60
50
40

Total

30
20
10
0
Very Good

Good

Bad

Worst

63

Interpretation:
To s a y f r a n k l y c o k e d o e s n o t p r o v i d i n g g o o d p r o m o t i o n s t o r e t a i l e r s a s
well as to the customer so major of the people were said against to the
c o m p a n y.

6. What are the peak selling hours of this outlet?

S.No

Particulars
11 0 a m - 1 p m
22 p m - 6 p m
36 p m - 1 0 p m
4A n y o t h e r

T ot a l

Percentage
10
30%
5
10%
12
50%
73
10%

80
70
60
50
40

Total

30
20
10
0
10am-1pm

2pm- 6pm

6pm-10pm

64

Any other

Interpretation:
Coming to the peak hours actually it dependes on the type of the outlet
and its location as per my survey major peak hours are 10am to 1pm
between and again 6pm to 10pm between remaining time there is no
that much customer visit so sale was down in the remaining hours.

7) Which is the most selling pack in your outlet?

S.No
1
2
3
4
6
7

Particulars
Coco Cola
Thumsop
Sprite
Mazza
Fanta
Limka

Total

Percentage

5
55
17
10
3
10

5%
55%
17%
10%
3%
10%

60
50
40
30

Total

20
10
0
Coco Cola Thumsop

Sprite

Mazza

Fanta

Limka

Interpretation:

65

Coming to most selling brand in Hyderabad city Thumsup occupied

major market more then half percentage of market share is grabed by
Thumsup only after that Sprite is the 2 nd major selling brand from the
coke after those Limca and Maaza listed.

8. Are consumers satisfied with the variety of packs offered?

S.No

Particulars
1Yes
2N o

T ot a l

Percentage
98
98%
2
2%

120
100
80
60

Total

40
20
0
Yes

No

Interpretation:

66

What ever the present varieties coke had in the market with those
c o n s u m e r s a r e v e r y m u c h h a p p y. F o r t h i s q u e s t i o n m a x i m u m p e o p l e
said yes. Coke getting more appreciation in this concept.

67

9. Which pack sells the most?

S.No
1
2
3
4

Particulars
Glass bottle
PET bottle
CAN
Tetra

Total
60
30
12
3

Percentage
60%
30%
12%
3%

70
60
50
40
Total

30
20
10
0
Glass bottle

PET bottle

CAN

Tetra

Interpretation:
Coke got the big market from RGB and PET bottles. That too in RGB
sector 200ml was the most selling pack. Coming to PET bottles all have
the equal share but 600ml was little bit high sale when comparing with
1ltr 1.5ltr and 2ltr paks.

68

10.

Which companies signage do you have at your outlet?

S.No

P ar t i c u l a r s
1C o c a C o l a
2P e p s i
3O w n
4O t h e r

Tot a l P e r c e n t a g e
10
10
60
20

1 0%
1 0%
6 0%
2 0%

70
60
50
40
Total

30
20
10
0
Coca Cola

Pepsi

Own

Other

Interpretation:
In this category coke stands in a bad position coke not providing sign
boards in this signage section others and owned boards are more.

11.

Which companies visi-cooler do you have in your outlet?

69

S.No
1
2
3
4

Particulars
Coca Cola
Pepsi
Own
Other

Total
60
20
5
15

Percentage
60%
20%
5%
20%

70
60
50
40
Total

30
20
10
0
Coca Cola

Pepsi

Own

Other

Interpretation:
Coming to visi coolers coke doing well job almost 60% of the outlets
a r e u s i n g c o k e c o o l e r s o n l y. E v e n c u s t o m e r g o t a c h a n c e w h e r e h e c a n
c h o o s e d i r e c t l y f r o m o u r c o o l e r.

70

CHAPTER-5
SUMMARY

71

SUGGESTIONS:
Tak i n g t h e a b o v e a n a l ys i s i n t o c o n s i d e r a t i o n , t h e f o l l o w i n g p o i n t s c a n b e
regarded for further sales promotion:

Present coca-cola offers are very much limited so need improvement

on schemes.

In some areas our service was little bit down like gopalapatnam,
simhachalam railway stn areas

When comparing with Pepsi retailer offers very much less in Coke,
to keep them Coke need a better plans.

S o m e t i m e s C o k e d o e s n o t m e e t i n g m a r k e t r e q u i r e d s u p p l y.

More promotional offers have to be introduced

Market developers should be given some amount which can be used to provide credit facility to
some retailers.

Market developers and sales people should work together

Install Fountain Machine at different locations. It will be helpful in generating impulse purchase
and also as awareness about the products of the company among the consumers

Many customers prefer to have coffee or tea so Coca-Cola can launch its Georgia coffee vending
machines. As many retailers are having either Nestea or other this will be a success.

The Company employees should make direct contact with the consumers, so that they may aware
with real situation of the market and consumers attitude towards the product. For this they can arrange
awareness camps in different locations.

Delivery should be done more quickly.

Gifts should be given to certain retailers who sells large quantities of goods.

72

CONCLUSION

EVERY THING IN THIS WORLD IS MADE TO UTILIZE PROPERLY BUT IT SHOULD

BE REACH AT THE PROPER PERSON OR TO THE PROPER UTILIZED AREAS.
OTHERWISE THE VALUE ADDED TO THOSE THINGS BECAME IN VEIN.
AS THERE IS A PROVERB THAT,
FAR FROM EYE, FAR FROM HEART
THUS MARKETING ROLE PLAYS A VERY IMPORTANT ROLE IN ACHIEVING THE
OBJECTIVES OF A COMPANY. UNDOUBTLY, VALUE UTILITY IS CREATED BY THE
MANUFACTURE OF PRODUCT OR SERVICE BUT TIME AND PLACE UTILITIES ARE
CREATED BY MARKETING ROLE.
ACCORDING TO DRUCKER, BOTH THE MARKET AND THE DISTRIBUTION
CHANNELS ARE OFTEN MORE CRUCIAL THAN THE PRODUCT.THEY ARE
PRIMARY AND THE PRODUCT IS SECONDRY. IN AN ECONOMY LIKE THAT OF
INDIA, WHERE MARGINAL SHORTAGES CAN LEAD TO DISPROPORTATION
DISTORTION IN PRICES, A DEPENDABLE AND EFFICIENT DISTRIBUTION SYSTEM
IS VERY MUCH ESSENTIAL. THE DISTRIBUTION SYSTEM CREATES A VALUE
ADDED TO ALL MOST ALL PRODUCTS.
ALL FROM THE ABOVE STUDY NOT WITHSTANDING ITS RESTRUCTING EFFORTS
PEPSI IS STILL FAR AWAY WITH ITS GREAT COMPETITOR LIKE COKE.

73

BIBILOGRAPHY

Reference:

Books

Authors

Marketing Research

:Naresh Malhotra

Marketing Management

:Philip Kotler

Research Methodology

:C. R. Kothari

D ATA S O U R C E S
Web s i t e s :
w w w.q u i c k m b a . c o m
w w w.i n d i a c o m . c o m
w w w. y e l l o w p a g e s . c o m
w w w.c o c a - c o l a i n d i a . c o m
w w w.w i k i p e d i a . o r g

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ANNEXURE
Questionnaire

H I N D U S TAN C O C A - C O L A B E V E R A G E S P V T.LTD
QUESTIONNAIRE ON SALES PROMOTION
Area

Outlet Name

O u t l e t Typ e

: Convenience/ Grocery/Eat & Drink

KO/PC/Shared:
Phone no. :
1 . W h i c h t yp e o f p r o m o t i o n s d o y o u l i k e ?
A)

Vol u m e L i n k e d S c h e m e s

B)

Cash Discount Schemes

C ) G i f t s o n Tar g e t Ac h i e v e m e n t
2. Are you receiving sufficient display material from coke?
A ) Yes

B) No

3 . W h i c h t yp e o f p r e m i u m s d o y o u l i k e ?
A) Luggage bags
C ) Ac c e s s o r i e s

B) Kitchen ware

D ) C a s h Vou c h e r

4. Are you getting all the discounts or prizes as per company

promised?
A ) Yes

B) No

5. Comparing with others how is coke promotion plans?

A ) Ver y G o o d

B) Good

C) Bad

D ) Wor s t

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6. What are the peak selling hours of this outlet?

A) 1 0 a m - 1 p m

B) 2pm- 6pm

C) 6pm-10pm

D ) An y o t h e r

7. Which is the most selling pack in your outlet?

Note:

Brand

Size 8. Are consumers satisfied with the variety of packs offered?

A) Yes

B) No

9. Which pack sells the most?

A) Glass bottle
C)

CAN
10.

B) PET bottle

D ) Tet r a
Which companies signage do you have at your outlet?

A) Coca Cola

B) Pepsi

B) Own

D) Other

11.

Which companies visi-cooler do you have in your outlet?

A) Coca Cola

B) Pepsi

C) Own

D) Both

12.

Which age group is associated with brands?

A) Coca Cola

B) ThumsUp

C) Sprite

D) Maaza

E) Fanta

F) Limca

13.

Any improvement you want in our service?

Note:

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