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A Summer Internship Project Report

On

“A study on Horizontal Expansion Opportunities for


COCA-COLA in East Ahmedabad”
at

In partial fulfilment of the requirements of Summer Internship in the Post Graduate Diploma
Program of N.R. Institute of Business Management

N. R. Institute of Business Management (NRIBM-PGDM)

Under the guidance of

Dr. Jasmin Padiya Prof. Deepa Khatwani


Associate Professor Associate Professor

Submitted by
Shraddhan Vakharia
Roll No. – P1761
Batch - 2017-19
NR Institute of Business Management- PGDM
Opp, Law Garden, Ellisbridge , Ahmedabad – 380006, India
Phone : 26447636 Fax: 26445958
Website: www.nribm.org

CERTIFICATE

This is to certify that Mr. Shraddhan Vakharia Roll No. P1761, students of NR Institute of
Business Management- PGDM have successfully completed their Summer Internship Project
on “A study on horizontal expansion opportunities for COCA-COLA in East Ahmedabad” at
“Hindustan Coca-Cola beverages Pvt. Ltd” in partial fulfillment for the requirements of the
PGDM programme.

This is their original work and has not been submitted elsewhere.

_________________ ____________________
Dr. Hitesh Ruparel Dr. Jasmin Padiya
Director Prof. Deepa Khatwani

Date: _________________
Place: ________________

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Declaration

I, Shraddhan Vakharia, Roll No .P1761 student of N.R. Institute of Business Management hereby
declare that I have successfully completed this project on “A Study on Horizontal Expansion
Opportunity for COCA-COLA in East Ahmedabad” in the academic year 2017-18.

I declare that this submitted work is done by me and to the best of my knowledge; no such work
has been submitted by any other person for the award of degree or diploma.

I also declare that all the information collected from various secondary and primary sources has
been duly acknowledged in this project report.

Shraddhan Vakharia

P1761

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Preface
In every field of education imparted to the student, working on project plays an immense role in
bringing out and exhibiting the qualities which is helpful in implementing student’s knowledge in
practical life. Today is the age of globalization, and competition has become a regular feature in
every industry. Every player in the market has to strive hard to sustain. Good marketing
strategies are always assisting the companies to survive and grow.

In spite of the theoretical knowledge gained through classroom study, a person is incomplete if
not exposed to the ground realities of the business world. He may have to face many professional
hurdles after his graduation; these will be difficult to overcome without first-hand experience of
business. In this context, 2 months of summer internship has been designed to the make the
person aware of the happenings of the real business world.

The PGDM curriculum is designed in such a way that student can grasp maximum knowledge
and can get practical exposure to the corporate world in minimum possible time. Business
school of today realize the important of practical knowledge over the theoretical base.

Coca cola is a global beverage company. This project on “A study on Horizontal Expansion
Opportunities for COCA-COLA in East Ahmedabad" .As a part of my internship I came to know
about the various new marketing strategies formulated by Coca-Cola to expand their business on
horizontal scales in the same market. The various new retail outlets approached for increasing
the sales volume of the company. The scope of the study was limited to Ahmedabad city as
considered the market for the further expansion of the business and increasing the volume and
formulating the strategies.

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Acknowledgements

On successful completion of summer internship programme at Hindustan Coca-Cola beverages


Pvt Ltd a global beverage company, I would like to take this opportunity to acknowledge the
contribution of the people who made it a success.

I am thankful to PGDM programme which has inculcated summer internship as an internal


constituent of academies endowed me this opportunities to explore and gain knowledge in the
corporate world.

I feel obliged to record my gratitude to my company guide, Mr.Satpal Chawla –Capability


Manager (east) of Hindustan Coca-Cola beverages Pvt. Ltd. Mr. Vishal Parmar – Area Sales
Manager (east), Susmil Sir – Sales Team Leader, for all their support, cooperation and willful
guidance. I am very much thankful to Miss Ritika (HR manager) who gave me an opportunity to
work for the company I would like to heartily thank all my colleagues (MGRs) at Hindustan
Coca-Cola beverages Pvt. Ltd., who have played important role in making my sPummer
internship fruitful.

I would also like to thank Our Director Sir, Dr.Hitesh Ruparel for giving me a peaceful and
calm atmosphere to help in our Study, and make this report.

I humbly thank to Prof. Deepa Khatwani and Dr. Jasmin Padiya, my faculty guide for constant
encouragement, guiding me throughout the internship programme and for being a wonderful
mentor, without her successful completion of project would not have been possible.

Shraddhan Vakharia

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Executive Summary
This report has been prepared with a specific purpose in mind. It outlines the history and current
scenario of the Coca-Cola Company globally and locally. The first part of the study takes us
through the present state of affairs of the FMCG industry and beverage industry.

The report contains a brief introduction of Coca Cola Company and Coca-Cola India and a
detailed view of the tasks, which have been undertaken to analyse the market of Coca-Cola i.e.
we have evaluated the company on Michael Five force model, PESTLE analysis and SWOT
analysis of the Coca-Cola Company.

The main objective of this project report is to analyze and study the behavior of retailers not
selling coca cola products and to study the reason behind selling competitors’ product. The
study also aims to perform Market Analysis of Coca-Cola Company & find out different factors
effecting the growth of Coca-Cola. Apart from these objectives this study is also conducted to
understand the Retail outlets preferences towards various Coca-Cola products.

This proposal consists of the summary of the research papers studied by me with respect to my
topic; this helped me to define the objective of the research. It also consists of the problem
definition and the research methodology to be carrying out for the research with respect to the
Sales promotions.
The results and the analysis of my survey are analysed and we have done 4 hypothesis tests out
of which 1 accept null hypothesis and 3 reject null hypothesis with the help of sophisticated Soft
wares like SPSS (Statistical Package for the Social Sciences)

The results and the findings are represented that most of outlets prefered PET Pack bottles and
Thums up in the carbonated soft drink and Maaza in the non-carbonated Soft drink i.e. Juice.

Keywords: F.M.C.G, PESTLE, Beverage, PET,

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Table of Content

CHAPTER NO CONTENT PG.NO

DECLARATION I
PREFACE II
ACKNOWLEDGEMENTS III
EXECUTIVE SUMMARY IV
CHAPTER 1 INDUSTRY OVERVIEW 1
1.1 FMCG Industry 2
1.2 Soft Drink Bottling Industry 3
1.3 Soft Drink Production 3
1.4 Soft Drinks Industry In India 3
1.5 Producers 4
1.5.1 North America 4
1.5.2 South America 4
1.5.3 Europe 5
1.5.4 Africa 5
1.5.5 India 5
1.6 Beverage Industry 6
1.7 Beverage Production 6
1.8 Beverage Industry In India 7
1.9 Market Size Of Soft Drink 8
1.10Major Players In Beverage Industry 10
1.11Pestle Analysis 12
1.12Porter‟s Five Forces Model 14
CHAPTER 2 COMPANY PROFILE 18
2.1 The Coca-Cola Company 19
2.2 History of Coca-Cola 20

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2.3 The Business 21
2.4 The Coca-Cola System in India 22
2.5 SWOT Analysis 25
2.6 Product Profile 29
2.7 Marketing Channels 34
CHAPTER 3 INTRODUCTION OF TOPIC 36
3.1 Horizontal Expansion 37
3.2 Reason of Horizontal Expansion 37
3.3 Benefits of Horizontal Expansion 38
3.4 How to Do Horizontal Expansion? 38
3.5 Advantage of Horizontal Expansion Over
Vertical Expansion 41
3.6 Achievements 42
CHAPTER 4 LITERATURE REVIEW 46
CHAPTER 5 RESEARCH METHODOLOGY 53
5.1 Problem Statement 54
5.2 Objective 54
5.3 Scope Of The Study 54
5.4 Research Design 55
4.5.1 Descriptive Research Design 55
5.5 Sampling 55
4.6.1 Population 55
4.6.2 Sample Units 55
4.6.3 Sample Size 56
4.6.4 Sampling Method 56
4.6.5 Research Instrument 56
5.6 Hypothesis 57
5.7 Data Collection Sources 57
5.8 Beneficiaries Of Study 58
5.9 Limitations Of The Research Work 58

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CHAPTER 6 ANALYSIS AND INTERPRETATION 59
CHAPTER 7 FINDINGS 79
CHAPTER 8 RECOMMENDATIONS 81
CHAPTER 9 CONCLUSION 83
CHAPTER 10 BIBLIOGRAPHY 85
ANNEXURES 88

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List of Tables
SR.NO TABLE NO. PARTICULAR PG.NO

1 3.1 Horizontal Expansion Story 38


2 3.2 Impact of New Outlet on Business 41
3 3.3 Achievements 45
4 5.1 Research Methodology 55
5 6.1 Type of retailer 60
6 6.2 Sell Soft Drink 61
7 6.3 Soft Drink Preference 62
8 6.4 Coca-Cola Preference 63
9 6.5 Product Preference 64
10 6.6 Pack Prefer 65
11 6.7 Customer Visiting 66
12 6.8 Offers 67
13 6.9 Seasonal Market 68
14 6.10 Equipment 69
15 6.11 Delivery 70
16 6.12 Order 71
17 6.13 Not Selling Drink 72
18 6.14 Reason for another brand 73
19 6.15 Reasons not selling coca cola product 74
20 6.16 Hypothesis – 1 75
21 6.17 Hypothesis – 2 76
22 6.18 Hypothesis – 3 77
23 6.19 One Sample T- Test 78

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List of Chart
SR.NO TABLE NO. PARTICULAR PG.NO
1 6.1 Type of retailer 60
2 6.2 Sell Soft Drink 61
3 6.3 Soft Drink Preference 62
4 6.4 Coca-Cola Preference 63
5 6.5 Product Preference 64
6 6.6 Pack Prefer 65
7 6.7 Customer Visiting 66
8 6.8 Offers 67
9 6.9 Seasonal Market 68
10 6.10 Equipment 69
11 6.11 Delivery 70
12 6.12 Order 71
13 6.13 Not Selling Drink 72
14 6.14 Reason for another brand 73
15 6.15 Reasons not selling coca cola product 74

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CHAPTER 1
INDUSTRY PROFILE

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1.1FMCG INDUSTRY

The FMCGs sector is a key component of India‟s GDP and FMCG industry is the fourth largest
sector in the economy and is responsible for 5% of total factory employment in the country. The
sector creates employment for over three million people in downstream activities, much of which
is disbursed in small towns and rural areas. The FMCG sector has several other contributions to
the economy. The industry has strong links with agriculture and nearly three-quarters of the
industry‟s sales come from agro-based products. Even in the language of the capital market, it is
a significant value creator with a market capitalization second only to the IT sector.
FMCG sector in India to diligently adopt effective protocols in improving customer service,
sales, and telemarketing productivity, making customer transactions shorter, and more cost-
effective. Soft drink
companies Coca-Cola and
Pepsi raise the war to tap the
potential market by using
their own marketing
strategies. 95% of Indian
market share acquired by
these two giant companies.
Still they are planning to
acquire the untapped potential
market in sub urban and villages. Pepsi used the Vertical strategy to enhance the business,
against to that Coca-Cola implemented Horizontal expansion concept to cover the market by
increasing more number of retail outlets. These types of contemporary issues have made the
other industries to watch curiously for their move of strategic decisions.
The Fast Moving Consumer Goods (FMCG) sector is one among the largest sectors in the
Indian economy also as Consumer Non-Durable (CND) industry. It is perhaps the most
identifiable sector by the end users as the products cater to the 23 everyday needs of the
population. Contrary to popular perception that the FMCG sector is a manufacturer of luxury
items aimed at attracting the elite class; in reality the sector meets the day-to-day needs of the
middle and lower middle class. Many of the low-priced products produced by this industry
contribute to the majority of the sales volume generated by the whole sector. For instance, lower

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income and lower middle-income group of the country account for over 60% of FMCG sector‟s
total revenue. Rural markets account for 56% of total domestic FMCG demand. Further, this
sector strongly influences the agriculture sector with 71 % of sales coming from agro-based
products. The fact that FMCG outlets are available at the most remote places of the country that
are deprived of a public utility service is a feather in the cap.

1.2 SOFT DRINK BOTTLING INDUSTRY


Over 1,500 U.S. patents were filed for a cork, cap, or lid for the carbonated drink bottle tops
during the early days of the bottling industry. Carbonated drink bottles are under great pressure
from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles
from escaping. In 1892, the "Crown Cork Bottle Seal” was patented by William Painter, a
Baltimore, Maryland machine shop operator. It was the first very successful method of keeping
the bubbles in the bottle.
Automatic production of glass bottles:
In 1899, the first patent was issued for a glass-blowing machine for the automatic production of
glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle
blowing machine was in operation. It was first operated by the inventor, Michael Owens, an
employee of Libby Glass Company. Within a few years, glass bottle production increased from
1,400 bottles a day to about 58,000 bottles a day.
1.3 SOFT DRINK PRODUCTION
Soft drinks are made by mixing dry ingredients and/or fresh ingredients (for example, lemons,
oranges, etc.) with water. Production of soft drinks can be done at factories or at home.
Soft drinks can be made at home by mixing either a syrup or dry ingredients with carbonated
water. Carbonated water is made using a soda siphon or a home carbonation system or by
dropping dry ice into water. Syrups are commercially sold by companies such as Soda-Club; dry
ingredients are often sold in pouches, in the style of the popular U.S. drink mix Kool-Aid.

1.4 SOFT DRINKS INDUSTRY IN INDIA


Soft Drinks in India industry profile provide top-line qualitative and quantitative summary
information including: market size. The profile also contains descriptions of the leading players

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including key financial metrics and analysis of competitive pressures within the market.
Essential resource for top-line data and analysis covering the India soft drinks market.
The soft drinks market consists of retail sale of bottled water, carbonates, concentrates,
functional drinks, juices, RTD tea and coffee, and smoothies. However, the total market volume
for soft drinks market excludes the concentrates category. The market is valued according to
retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in
the creation of this report have been calculated using constant 2012 annual average exchange
rates. The Indian soft drinks market generated total revenues of $3.8 billion in 2012, representing
a compound annual growth rate (CAGR) of 11% for the period spanning 2009-2012.

1.5 PRODUCERS
1.5.1 North America:
 The Coca-Cola Company
 Dr. Pepper Snapple Group
 PepsiCo

1.5.2 South America:


 Ajegroup: (Peruvian origin, operates in 14 countries, now headquartered in Mexico),
producers of Big Cola, Cielo (mineral water), Cifrut (fruit juice), Free Tea, Free World
Light (referred to locally as Free Light), Kola Real, Oro, Pulp (nectar), Sporade (sports
drink) and Volt (energy drink)
 AmBev: (Brazil, operates in 14 countries, owned by Anheuser-Busch InBev), the largest
bottler of Pepsi Cola products outside the United States, also produces Guarana
Antarctica, Soda Limonada, Sukita, H2OH! And Guara!
 Corporación José R. Lindley S.A: (Peru), producers of Aquarius (flavored water), Burn
(energy drink), Coca-Cola, Crush, Fanta, Frugos (nectar), Inca Kola, Kola Inglesa,
Powerade (energy drink), San Luis (mineral water) and Sprite
 Embotelladora Don Jorge S.A.C: (Peru), producers of Agua Vida (mineral water),
Click (fruit drink), Isaac Kola and Perú Cola

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 Embotelladora Latinoamericana S.A. (ELSA): (Colombia), producers of Cyro, Liv

Pepsi Cola, Seven Up, Triple Kola, Concordia, San Carlos (mineral water), Evervess,
Gatorade (sports drink) and Adrenalina Rush (energy drink)

1.5.3 Europe: Perrier and Jupiler

1.5.4 Africa:
 Hamoud Boualem founded in 1878 in Algiers, exports its products to Europe and
Canada.
 Ifri. Another Algerian company based in Bejaia.

1.5.5 India:
 Appy Fizz by Parle
 Agua Blue (Natural Mineral Water by LR Beverages Pvt Ltd.)
 Banta (lemon-flavored soft drink
 Bovonto (grape soda produced by Kali Mark)
 Campa Cola (popular Indian soda introduced in 1977)
 Cloud 9 (energy drink)
 Frooti (mango-flavored drink from Parle Agro)
 Real (Local soft drink brand)
 Gold Spot
 Grappo Fizz
 Davat (Local soft drink brand)
 Guptas (8 flavoureds soft drinks introduced in 1947)
 Juicila (Powdered Soft Drink Concentrate available in Orange, Mango, Lemon, Cola,
Masala, Jaljira )
 Limca (lemon-lime soda)
 LMN (lemon drink produced by Parle Agro)

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 Duke's Mangola (mango drink from Dukes bought by PepsiCo)
 Duke's Lemonade
 Maaza (mango drink from Parle bought by Coca-Cola)
 Rasna (powdered soft drink)
 Real (fruite juice from Dabur)
 Red bull (energy drink)
 Thums Up (Cola drink from parle argo then bought by coca cola)
 777 (soft drink) (Panner,Cola,Orange,Lemon,Clear Lemon Lime, Mango

1.6 BEVERAGE INDUSTRY


The beverage industry is a shifting landscape as volume leading categories such as soft drinks
continue to lose volume versus prior year while functioning and health and wellness oriented
categories enjoy strong volume growth. Functional beverages continue to be the hottest segment
in beverage. A soft drink is a non-alcoholic beverage that typically contains carbonated water, a
sweetener, and a flavoring agent. The sweetener may be sugar, or a sugar substitute in the case of
diet drinks. Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Soft drinks can be further divided into carbonated and non-carbonated drinks.
Cola, lemon and oranges are carbonated drinks while mango drinks come under non-carbonated
category. The market can also be segmented on the basis of types of products into cola products
and non-cola products. Coke and Pepsi dominated the market and together had a consolidated
market share above 95%. Coca Cola products account for nearly 72-73% of the total soft drinks
market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke, Diet
Pepsi etc. Non-cola segment which constitutes 26% can be divided into 4 categories based on the
types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango. India with its
large population, low consumption and rural market represented a significant opportunity for
penetration and a critical battleground for market dominance.

1.7 BEVERAGE PRODUCTION


Beverage production can be a complicated process if you are new to the industry. Bottling
facilities differ in the types of bottling lines they operate and the types of products they can run:

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cans vs bottles, hot-fills vs cold-fill, natural vs conventional etc. It is critical to understand the
requirements of your beverage brand before you begin the production process. Demand for non-
alcoholic beverages has been the catalyst for innovations in drink production in recent years,
including beverage plants, beverage processing and beverage packing.
No two beverage plants are alike. The beverage process each beverage production facility
specializes in can vary greatly as can the beverage packing equipment available. There are many
types of beverage processing equipment, some of the capabilities you may need to consider
given the requirements of your brand include:
 Cold Fill
 Hot Fill
 Carbonation
 Aseptic or tetra pack
 Tunnel Pasteurization

Other key considerations are the contract manufacturing fees charged by the beverage production
company to run your product and the geographic location of the facility. If you wish to distribute
your brand in the Northeast but the only facility that can run your product is located in Southern
California, then you need to account for the freight expense of raw materials as well as finishes
product.

1.8 BEVERAGE INDUSTRY IN INDIA


The food processing industry in India has a total turnover of around USD 65 billion which
includes value added products of around USD 20.6 billion. The beverage industry in India
constitutes of around USD 230 million among the USD 65 billion food processing industry. The
major sectors in beverage industry in India are tea and coffee which are not only sold heavily in
the domestic market but are also exported to a range of leading overseas markets. Half of the tea
and coffee products are available in unpacked or loose form. Among the hot beverages
manufactured in India, tea is the most dominant beverage that is ruling both the domestic and
international market even today.

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BEVERAGES

NONALCOH
ALCOHOLIC
OLIC

CARBONATE NONCARBO
D NATED

COLA NON-COLA NON-COLA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
 Alcoholic, non-alcoholic and sports beverages.
 Natural and Synthetic beverages.
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
 Segmentation based on the amount of consumption i.e. high levels of consumption and
low levels of consumption.

1.9 MARKET SIZE OF SOFT DRINK


Revenue in the Soft Drinks segment amounts to US$ 3,266m in 2018. The market is expected to
grow annually by 10% (CAGR 2018-2021).
From an international perspective it is shown that most revenue is generated in the United States
(US$ 98,583m in 2018).
In relation to total population figures, per person revenues of US$ 2.40 are generated in 2018.
The average per capita consumption stands at 4.1L in 2018.

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INDIA CARBONATED DRINKS MARKETS
Carbonated or aerated drinks account for more than 40% of the total non-alcoholic beverages
market in India. A carbonated drink which comes out very cheap is one of the products that go
with every segment of people in India. Many brands that are present in the Indian market are
Thums Up, Coca Cola, Pepsi, Sprite, Fanta, Limca, Mirinda etc. The major segment in the
carbonated market is also done on the basis of flavours used i.e. Cola flavoured drinks, lime –
lemon flavoured drinks, orange flavoured drinks and other drinks. Currently, the trend in terms
of flavours is defined by lime – lemon flavoured drinks in India.

GROWTH RATE OF BEVERAGE INDUSTRY


Beverages consist of 100% fruit juice, natural mineral water, green tea and malt-based hot
drinks. For all categories in this high-growth segment, the most important growth drivers are
awareness about health benefits of consuming these products, increase in disposable incomes and
urbanization.
Urban India is the key growth driver for naturally healthy beverages. With lifestyle diseases and
conditions, such as hypertension and diabetes, experiencing an exponential rise in the country, an
increasing number of Indians are opting for healthier options, such as naturally healthy
fruit/vegetable juice, fruit-based drinks and nectars.
In India, malt-based beverages are also called health drinks as they are fortified with nutrition
and used to enhance the taste of milk. Malt has always been a part of the diet of growing children
and the elderly as a nutritious supplement. While marketers have positioned such beverages as
nutritious drinks, these are also widely consumed as taste enhancers to encourage drinking of
milk among growing children. Greater health consciousness, aspirations for higher standards of
living and comfortable disposable incomes become the main drivers of consumption patterns.
Coca-Cola and PepsiCo plants for aerated sugary beverages are running at about half their
capacities . "On an average, carbonated soft drink (CSD) lines at plants are running at half or
40% of their capacity. Earlier, this was the case only in off-season months such as December and

January. Now, barring May and June, plants are running at half their capacity the rest of the year
for aerated drinks,"
Output lines for functional drinks such as juices, juice-based drinks, sports drinks and flavoured

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or fortified water are running at optimum capacity, but these have a far smaller base than the
Rs.22,000-crore CSD category. Both companies are, therefore, focusing on manufacturing more
non-aerated drinks, tweaking production plans to be in kilter with the latest consumer preference.

1.10 MAJOR PLAYERS IN BEVERAGE INDUSTRY


Coca-Cola is one of the most respected brands in the world and it has long warded off the
competition with the use of a strong distribution strategy and equally strong marketing messages.
Coca-Cola has over a period of time used positive marketing to the best of its advantage and has
rarely been involved in negative marketing (which Pepsi does frequently).

1) Pepsi

Without a doubt one of the strongest coca cola competitors is Pepsi. One of the reasons these
brands fight tooth and nail is because both of them are very strong in their distribution and have
excellent marketing and sales policies. As a result, you will find that the maximum market share
is of these 2 brands – be it any country.
We love the rivalry between Coke and Pepsi so much, that we wrote an article on the top ads
showing the rivalry between Coke and Pepsi.
2) Nescafe

Some people love tea and others love Coffee. The USA itself is a major coffee drinking nation
and so are many others. And in Coffee, the one brand which has the top mindshare is Nescafe.
Nescafe is without a doubt a very strong coca cola competitor because of its superb taste and
fantastic distribution.
Nescafe is a product from the brand Nestle. Nestle is known for various brands like Maggi,
cerelac, various breakfast cereals and whatnot. As a result, Nescafe has a distribution setup
which is even larger then Coca-Cola because of the simple reason that Nescafe is also sold in
medical shops besides being sold in groceries or other markets.

3) Red Bull

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Red Bull gives you wings, quite literally!! Red Bull is one of the strongest growing energy
drink/sports drink and is amongst the strongest direct coca cola competitors in terms of brand
valuation. The popularity of Red Bull is because of a wide adoption in the pub culture where Red
Bull can be mixed in various drinks. Its taste is stronger and loved by Red Bull drinkers.
4) Gatorade

Gatorade uses Science to come up with its various formulae and targets mainly sports and
athletes for its drink. It has various nutrients, each of which can be applied to different sports
activities – such as drinking before the game, drinking within the game or drinking after it.
Calories, proteins, and various nutritional value facts are included in the packaging of
the product so that the athlete has a complete knowledge of what he is drinking.
Gatorade is the 4th highest ranked brand in the soft drink market and hence is a competitor for
coca cola especially in the calorie conscious and energy desiring sports market. If you want to be
lean and fit, it is much more likely that you will opt for Gatorade instead of something like Coke
or Pepsi.

5) Dr Pepper (Dr Pepper Snapple)

The 5th coca cola competitor is another one in this list which is not from the house of Coca-Cola
or Pepsi. Dr Pepper Snapple Group has a combination of some well-known brands such as 7 up
and RC Cola. Amongst these, the flagship product which is the strongest coca cola competitor is
Dr Pepper itself.
Dr Pepper comes in various flavors and in fact, is known and loved for its unique taste. The
brand is distributed in many countries but has a major market penetration in the US, from where
it derives its brand valuation. It is also known for its smart marketing and use of slogans, due to
which it has survived and thrived for long against the likes of Coca-Cola and Pepsi.
Analytics firm Euromonitor says that between 2016 - 2021, bottled water sales will increase a
fifth, far outrunning the 7% growth for carbonated drinks. In terms of value, too, bottled water
will rise 17%, compared with 4% for CSDs.

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1.11 PESTLE ANALYSIS

Political/Legal Factors
 Food and Drug Administration (FDA) Regulation

All the food products manufacturers and producers are under the control of FDA. For instance,
the food and drug administration certifies and tests new ingredients such as high concentration
sweeteners prior to they are permitted to be used in beverages and soft drink production.

 Human Rights Issue

Multinational corporations are facing different human rights issues, rules, regulations, laws and
policies of different governments in operating countries.

 Waste management and public concerns

Increasing environmental consciousness is most important to growing legislation. The firm‟s


operation is exaggerated by federal legislative applications that concentrate on the four
objectives.
 Decrease the quantity of packaging material inflowing the nation‟s solid waste
management system
 Diminish the consumption of natural scarce resources
 Increase the reuse and recycling packaging materials

To shelter the natural environment and human health from undesirable effects related with the
dumping of packaging materials. For instance, Connecticut has now passed a law that controls
packaging to enlarge its recyclability.

Economic Factors
The main factors taken into deliberation are the market risks, which a Pepsi company is bared to
commodity prices, foreign exchange rate and interest rate. These elements are described as
follows.

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 Commodity prices

Commodity prices distress the raw material cost, Pepsi Company is opened to market risk due to
the commodities prices, because in competitive environment where Pepsi is operating, would
limited its capability from improving costs during higher pricing.

 Foreign exchange & global economic conditions

Operating in global environment is not as easy as operating in local market, because it involve
the exposure to currency exchange rates variations. This generally affects the interest rate,
economic growth, government actions inflation and other economic factors. These changes could
affect the Pepsi and Coke to adjust their operating and financing strategies. Variations in global
currency exchanging rates and macro-economic conditions could affect the international
operating profits and business of the Pepsi and Coke.

 Interest rate

Pepsi and Coca Cola could control their general financing in term of harmonizing risks and
investment opportunities. To minimize overall borrowing costs firms in beverage industry are
using currency swaps and interest rate to significantly adapt the rates in order to minimize the
borrowing cost. .

Socio-cultural factors
Now-a-days consumers are not brand loyal as they were previously, now they can easily switch
to another product. Consumer choice for beverages and soft drinks is affected by two major
characteristics such as ethnicity and age. Due to health reason, age factor plays very important
role when choosing a soft drink or beverage. Some studies have been conducted and found that
soft drinks and cola products in general may result health problems specially, kidney stones. In
compare to adults, younger consumers specially teens and twenties have fewer interest spans for
products and have a preference of products that seems different and to be fun. Now players in

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beverages industry changes to non cola products for instance bottled water, sports drinks, tea
etc.

Technological factors
Technological advancement in manufacturing and new quality improvement concepts such JIT,
Six Sigma, MRP-II etc are the significant providers to improve efficiency of bottling operations
and quality of products. Advancement in technology also helps to introduce new product lines
for example new flavors, sugar-free or diet sweeteners, caffeine free goods facilitates Pepsi and
Coke to launch brands that meet changing customer style, preferences and taste. In beverage
industry distribution process is a big challenge because process can be able to place the right
products at right time. In soft drink industry technology can provide a competitive advantage, if
it is applied in area such as logistic products into stores less extravagantly and costs beyond the
distribution pipeline while increasing sales information availability.

1.12 PORTER‟S FIVE FORCES MODEL


Porter‟s five forces model, named after its developer Michael E Porter, is a strategic analysis tool
that helps to analyze some critical forces affecting the level of competition in an industry. This
model has acquired great popularity and fame over time and is used widely across the business
world for evaluating the profitability and attractiveness of various industries. The five forces
that this model evaluates are a part of every industry and every market. Managers can form
strategies based on an analysis of these forces to increase the profitability of their business. This
is a Five Forces analysis of the soda giant Coca Cola. Coca Cola is the leading brand in
beverages sector and has a global presence. Its only major competitor is Pepsi.

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New
Entrant to
the Industry
(Medium)

Bargaining
Rival
Power of Substitutes
Competitors
Buyers (High)
(High)
(High)

Bargaining
Power of
Suppliers
(Medium)

1. Bargaining Power of Buyers

When it comes to the bottled beverages market, buyers have a fair amount of bargaining power,
and this affects Coca-Cola's bottom line directly. Coca-Cola does not sell directly to its end
users. Instead, it mostly deals with distribution companies that service fast food chains for
fountain services, vending machine companies, college campuses and grocery stores. Demand
leads the purchases, but Coca-Cola also has to keep an eye on what that end price will be.
Ultimately, Coca-Cola has to sell its products to distribution networks and other customers at
prices low enough that they can sell to the end user at a price that keeps them coming back.
Moreover, Coca-Cola's pricing is also somewhat consistent with each outlet. After all,
McDonald's does not sell a Coke for 99 cents one day and $1.03 the next. As Coca-Cola's cost of
goods sold (COGS) fluctuates due to materials, transportation or manpower, either the beverage
company or those companies to which it distributes have to absorb the changes in price.
2. Bargaining Power of Suppliers

This leads to the final competitive force: Coca-Cola‟s suppliers. As big as the beverage company
is, and as many contracts as it likely has with its suppliers securing pricing, suppliers still have
some power, and some of it may be out of their hands. After all, sugar is a commodity; like other
commodities, its price varies over time and with availability. A few natural disasters could affect
sugar cane harvests and impact Coca-Cola's raw materials costs. Thanks to contracts the

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company likely has in place, the effect would be minimal unless those disasters occurred
repeatedly over the course of several years.
3. Rival Competitors

In the Beverage Industry, When you think of Coca-Cola and competitors, Pepsi is probably one
of the first rivals to come to mind, and rightfully so. The two companies have been in
competition with each other since the late 19th century. They have very similar ingredients in
their marquee products and some very similar offerings: Coke and Pepsi. The two companies
also have similar non-soda interests, such as orange juice and bottled water. Pepsi also owns
Doritos, Quaker Oats and Rice-A-Roni, which changes the way it competes. Most notably, if
trends go against soda and bottled drinks, Pepsi may be able to hedge its bets with its other lines.
Coca-Cola does not have the same opportunity.
Coca-Cola also competes directly against the Dr. Pepper Snapple Group. While Dr. Pepper
Snapple does not have a cola, it does feature some big brands in the soft drink and juice markets,
including its namesakes Dr. Pepper and Snapple as well as A&W Root Beer and Sunkist. In
some ways, not having a cola could work to the Dr. Pepper Snapple Group's advantage. As
popular as Coca-Cola is, a trend towards beverages with less caffeine could leave its sales in that
product line depressed. As consumer trends shift, Coca-Cola could be left vulnerable, but the
beverage company does have a loyal following. The risk in this area is moderate.

4. New Entrant to the Industry

New entrants to the beverage industry are another possibility. While companies such as Coca-
Cola and its rivals do have special licensing deals, including having their products sold in fast
food chains, and different distribution deals, another company could gain a foothold if it hit into
the trends at the right time. Granted, it would have to have a very positive and very viral image
or spend a fortune to create the type of brand recognition Coca-Cola enjoys, but it is not
impossible.
Moreover, as consumers move towards healthier options, it would not necessarily have to be a
single new entrant that causes a problem for the beverage behemoth. Several new entrants to the
industry at once could fragment it to the point that it affects Coca-Cola‟s bottom line. As smaller
companies attempt to enter the beverage market, this threat becomes more of a possibility. It may

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not be very likely, but anyone investing in Coca-Cola should at least keep an eye on the
competitive landscape.
5. Substitutes

Similarly, Coca-Cola also has to contend with what buyers could purchase instead of its
products. For instance, customers could start drinking coffee instead of Coke. If the rise of
Starbucks has shown anything, it is that people really do love coffee in the right environment and
with the right flavourings. Coca-Cola does have a stake in Green Mountain Coffee Roasters, the
maker of Keurig, possibly for just this reason.
Buyers could also choose beverages such as freshly made smoothies or fresh-pressed juices
instead of Coca-Cola's bottled beverages. As more people become health-conscious, the threat of
a trend forming in which buyers substitute a different drink for Coca-Cola products becomes
more of a possibility. Again, Coca-Cola is popular the world over, but investors need to make
sure they are aware of the competitive landscape in which the company operates if they are going
to make informed decisions about whether to invest and how long to hold on to their investments
if they do.

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CHAPTER 2
COMPANY PROFILE

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2.1 THE COCA-COLA COMPANY
The Coca-Cola Company (NYSE: KO) is the world's largest beverage company, refreshing
consumers with more than 500 sparkling and still brands and more than 3,800 beverage choices.
Led by Coca-Cola, one of the world's most valuable and recognizable brands, our company‟s
portfolio features 20 billion-dollar brands, 18 of which are available in reduced-, low- or no-
calorie options. Our billion-dollar brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite,
Dasani, vitamin water, Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak.
Through the world's largest beverage distribution system, we are the No. 1 provider of both
sparkling and still beverages. More than 1.9 billion servings of our beverages are enjoyed by
consumers in more than 200 countries each day. With an enduring commitment to building
sustainable communities, our company is focused on initiatives that reduce our environmental
footprint, create a safe, inclusive work environment for our associates, and enhance the economic
development of the communities where we operate. Together with our bottling partners, we rank
among the world's top 10 private employers with more than 700,000 system associates.

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2.2 HISTORY OF COCA-COLA
Dr. John Smith Pemberton, an Atlanta druggist, invented "Coca-Cola" syrup on May 8,1886.
The fountain drink was first marketed as a brain and nerve tonic in drugstores. The soda was first
bottled in 1894.
In 1916, a new design was unveiled for Coca-Cola bottles called the Contour Bottle, which
helped the soda stand out among imitators and became a smash hit and a symbol of the company.
Cans were introduced by 1960.
Coca Cola Company is one of the United States based company founded in the year 1886. It is
one of the world's leading
manufacturer, marketer and
distributor of cola
type‟s products. The industrial
type of the company comes
under the Beverages. The
company's
headquarter is situated at Atlan
ta. It has its worldwide
operation in more than 200cou
ntries of the world MAZZA.
The company for the year 2002 was regarded as the company having highest Brand value. The
brand value was measured at 69,637,000,000 in terms of $. Presently the company has more than
400 brands over the world. The company employs approximately 55,000 peoples over the world.
The net income of the company as of the year ended on December 31, 2005 reached at $ 4,872
million. Presently E. Neville Is dell is the Chairman, Board of Directors and the Chief Executive
Officer of the Company.

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2.3 THE BUSINESS
The Coca-Cola Company was founded by John Pemberton and focused to provide refreshment
and a spark of energy. The Headquarters are located in Georgia. The name Coca Cola was
derived from its two constituents – kola nuts and cola leaves – which were two very different and
unique ingredients. Coca-Cola is one of the largest soft drink sellers of the world with a growing
profit of $6.55 Billion in the present year.
Along with Coca- Cola®, recognized as
the world‟s most valuable brand, the
Company‟s portfolio includes 12other
billion dollar brands, including Diet Coke®,
Fanta®, Sprite®, Coca-Cola Zero™,
vitamin water®, Minute Maid® and
Georgia™ Coffee. Globally, we are the
No. 1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and
coffees. Through the world‟s largest beverage distribution system, consumers in more than 200
countries enjoy the Company‟s beverages at a rate of
1.5 billion servings a day. With an enduring commitment to buildingsustainable communities,
our Company is focused on initiatives that protect the environment, conserve resources and
enhance the economic development of the communities where we operate.
Fact sheet of the company
 Established: 1886
 Ranking: We own 3th of the world‟s top 5 nonalcoholic sparkling beverage brands: Coca-
Cola, Diet Coke, Sprite and Fanta
 Company Associates: 90,500 worldwide (as of December 31, 2007)
 Operational Reach: 200+ countries
 Consumer Servings (per day): 1.5 billion
 Beverage Variety: We offer more than 2,800 products including diet and regular
sparkling beverages, and still beverages such as 100 percent juices, juice drinks, waters,
sports and energy drinks, teas and coffees, and milk-and soy-based beverages.
 New York Stock Exchange Ticker Symbol: KO

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2.4 The Coca-Cola System in India
Coca-Cola India, is one of the country‟s leading beverage companies, offering a range of
healthy, safe, high quality, refreshing beverage options to consumers. Over the last 23 years, ever
since its re-entry in 1993, the company has gone on to establish an unmatched portfolio of
beverages; refreshing consumers with its leading beverage brands like Coca-Cola, Coca-Cola
Zero, Diet Coke, Thums Up, Fanta, Fanta Green Mango, Limca, Sprite, Sprite Zero, VIO
Flavored Milk, Maaza, Minute Maid range of juices, Georgia and Georgia Gold range of hot and
cold tea and coffee options, Kinley and Bonaqua packaged drinking water, Kinley Club Soda and
BURN energy drink. The Company along with its bottling partners, through a strong network of
over 2.6 million retail outlets, touches the lives of millions of consumers. Its brands are some of
the most preferred and most sold beverages in the country.
The world is changing all around us. To continue to thrive as a business over the next ten years
and beyond, we must look ahead, understand the trends and forces that will shape our business in
the future and move swiftly to prepare for what's to come. We must get ready for tomorrow
today. That's what our 2020 Vision is all about. It creates a long-term destination for our
business and provides us with a "Roadmap" for winning together with our bottling partners.

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola

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Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and
beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,
Hindustan CocaCola Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-Cola
Company, who are authorized to prepare, package, sell and distribute beverages under certain
specified trademarks of The Coca-Cola Company; and an extensive distribution system
comprising of our customers, distributors and retailers.
Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers who
are authorized to use these to produce our portfolio of beverages. These authorized bottlers
independently develop local markets and distribute beverages to grocers, small retailers,
supermarkets, restaurants and numerous other businesses. In turn, these customers make our
beverages available to consumers across India.

Our Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.
 To refresh the world...
 To inspire moments of optimism and happiness...
 To create value and make a difference.

Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by
describing what we need to accomplish in order to continue achieving sustainable, quality
growth.
 People: Be a great place to work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

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 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

Focus on the Market


 Focus on needs of our consumers, customers and franchise partners
 Get out into the market and listen, observe and learn
 Possess a world view
 Focus on execution in the marketplace every day
 Be insatiably curious

Work Smart
 Act with urgency
 Remain responsive to change
 Have the courage to change course when needed
 Remain constructively discontent
 Work efficiently

Our Winning Culture


Our Winning Culture defines the attitudes and behaviors that will be required of us to make our
2020 Vision a reality.

Live Our Values


Our values serve as a compass for our actions and describe how we behave in the world.
 Leadership: The courage to shape a better future
 Collaboration: Leverage collective genius
 Integrity: Be real
 Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
 Diversity: As inclusive as our brands

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 Quality: What we do, we do well

Act like Owners


 Be accountable for our actions and inactions
 Steward system assets and focus on building value
 Reward our people for taking risks and finding better ways to solve problems
 Learn from our outcomes -- what worked and what didn‟t

Be the Brand
 Inspire creativity, passion, optimism and fun.

Four coca cola brands in top the category


 Soft drink : Sprite no 1 , Thums up no 2
 Juice : Maaza no 1
 Bottled water : Kinley no 1

2.5 SWOT ANALYSIS


SWOT Analysis is the process of analyzing the company and the environment in whichit is
operating. This analysis helps in formulating effective strategy for the company to deal with
competition. SWOT stands for Strengths, weaknesses, opportunities and threats. Strengths and
weakness are internal to the organization, whereas opportunities and threats are external to the
organization.
Strength:
 Strong brand image

 Largest market share

 Strong brand portfolio

 High customer loyalty

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 Extensive distribution network

 Investment in marketing and advertising

 High company valuation

The most important strength of Coca Cola is its brand image and the high brand awareness. The
brand is present in nearly every part of the world and enjoys a very high degree of popularity.
Coca Cola also holds the largest market share of around 48% in the beverages industry. Another
key strength of Coca Cola is its strong product portfolio. To match the competition from the
health drinks, it introduced Diet Coke to Coke Zero Sugar, Fanta Orange Zero, Lilt
Zero, Schweppes Diet Lemonade and PowerAde Zero. It has presented low calorie options for
nearly all its major and well known products.

The coca cola company holds some significant strengths that give it a competitive edge in the
market. Its flavorful drinks enjoy a very high level of customer loyalty. A key reason behind its
impressive international presence is its robust distribution network. Coca Cola utilizes unique
marketing and advertising strategies. It has continued to make major investments in marketing
and advertising as well as customer engagement. From time to time viral marketing videos to
social media campaigns, Coca Cola has used all of them to attract customers. It also gains
publicity through sponsorship and other methods. Currently valued at $83.84 billion, Coca Cola
enjoys high brand value. An excellent distribution network is also an important strength of the
brand. These are the key strengths of Coca Cola and also the reasons behind its success.

Weakness:

Competitive pressure from rival brand Pepsi.

 Low product diversification

 Currency fluctuations

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 Low presence in health drinks

 Water management issues.

The rivalry and competitive pressure against Coca Cola has kept rising. However, Coca Cola did
not make any major strategic move to beat the competition. It has continued to rely on the
popularity of its existing brands, apart from the introduction of a few low calorie options.
Recently, the brand increased the number of low calorie or calorieless options in its product
portfolio. Still, considering the growing presence of health drinks and sports drinks, competition
might grow further in future. The brand has already faced issues regarding over-consumption of
water. Its product diversification relative to its competitors has been low. Fluctuations in the
value of dollar have also hit Coca Cola hard, causing loss of profits. Last year (2015), Coca Cola
saw a drop in its revenue. The industry has seen customers move towards the health drinks.
However, this is an area where the brand presence of Coca Cola is relatively low. It also faced
lawsuits over product quality recently. The uproar over the use of pesticides is yet to die.
Continuing lawsuits and legal hassles also challenge its reputation especially in the growing
markets.

Opportunities:

 New opportunities in growing markets

 Product diversification

 Packaged water

Coca Cola has major opportunities before it in the emerging markets. It can profit through brand
expansion in these markets. Apart from it, product diversification into healthy drinks and
packaged water can also bring revenue and profits. Adding food products to its portfolio like
Pepsi did could also be a good option. Introduction of health drinks and juices can particularly
benefit it by establishing it as a health friendly brand.

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Threats:

Increased competition from the less known brands.

 Increased costs of labor and raw material.

 movement towards health drinks

The threat of competition against Coca Cola has kept rising. Apart from Pepsi, competitive
pressure from other brands like Dr Pepper Snapple Inc., Monster Beverage Corp., and Suntory
Beverage & Food Ltd has also increased. The resources are getting costlier including water. The
rising costs of production and labor resources are also an important threat. The threat from the
continuing lawsuits is not small either. So, there are some major threats before Coca Cola.
However, the biggest one is water scarcity.

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2.6 PRODUCT PROFILE

COCA-COLA

The biggest-selling soft drink in history, and the best-known product in


the world. It is also considered as the World‟s most valuable brand. From
a humble beginning in the year 1886, it is now the flagship brand of the
largest manufacturer, marketer and distributor of non-alcoholic beverages
in the world. The word 'Coca-Cola' itself is even thought to be the second
most widely understood word in the world after „OK‟!
Coca-Cola‟s advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very
popular & had entered youths vocabulary. In 2002.Coca-Cola launched its iconic campaign
“Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India‟s favourite soft
drink brand.
Glass PET Can FOUNTAIN
200ml , 300ml 250ml, 750ml, 1.25ltr, 2.25ltr 330ml VARIOUS SIZES

SPRITE
First introduced in 1961, 'Sprite' is now the world‟s leading lemon-lime
flavored soft drink and the No. 4 soft drink worldwide, sold in 190
different countries! The idea for the name came from Haddon
Sundblom‟s „Coca-Cola‟ advertisements featuring „the little sprite‟ – an
elf with silver hair and a big smile. Millions of people around the world
enjoy 'Sprite' for its crisp, clean taste.
Glass PET Can FOUNTAIN
200ml , 300ml 250ml, 750ml, 1.25ltr, 2.25ltr 330ml VARIOUS SIZES
.

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FANTA
'Fanta' is the soft drink with the vibrant taste of real fruit flavors. 'Fanta'
became only the second drink - after 'Coca-Cola' itself - to be marketed
by The Coca Cola Company, but was soon available in many different
countries. Originally only orange flavored, 'Fanta' is now produced in 70
different varieties worldwide, with flavors often derived from the native fruits of the region
where it is being sold. Coca Cola has recently launched the Fanta Apple flavor.
Glass PET Can FOUNTAIN
200ml , 300ml 250ml, 750ml, 1.25ltr, 2.25ltr 330ml VARIOUS SIZES

DIET COKE
Diet Coke, also known as Coca-Cola light in some markets, is a sugar- and
calorie-free soft drink. It was first introduced in the United States on
August 9, 1982, as the first new brand since 1886 to use the Coca-Cola
Trademark. Today, Diet Coke/Coca-Cola light is one of the largest and
most successful brands of The Coca-Cola Company, available in more than
150 markets around the world.
Glass PET Can FOUNTAIN
200ml , 300ml 250ml, 750ml, 1.25ltr, 2.25ltr 330ml VARIOUS SIZES

COCA-COLA ZERO
Coke Zero was Coca-Cola's largest product launch in 22 years and
launched in 2005, reaching billion-dollar status in 2007. Coca-Cola Zero
offers great Coke taste, uplifting refreshment and zero sugar.

Glass PET Can FOUNTAIN


200ml , 300ml 250ml, 750ml, 1.25ltr, 2.25ltr 330ml VARIOUS SIZES

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THUMS UP
Thums-Up is a leading sparkling soft drink and most trusted brand in
India. Originally introduced in 1977, Thums-up was acquired by
Coca Cola Company in 1993. It is similar In flavor to other colas but
has a unique taste reminiscent of betel nut and is promoted as a
masculine and a bold drink.
Glass PET Can FOUNTAIN
200ml , 300ml 250ml, 750ml, 1.25ltr, 2.25ltr 330ml VARIOUS SIZES

LIMCA
Lime n lemoniLimca, the drink that can cast a tangy refreshing spell on
anyone, anywhere. Born in 1971, Limca has the original thirst choice of
millions of consumers for over 3 decades. The brand has been displaying
the leading flavor soft drinks in the country. The success formula? The
sharp fizz and lemoni bite
combined with single minded positioning of the brand as the ultimaterefresher has continuously s
trengthened the brand franchise. Limca energizes refreshes and transforms.
Glass PET Can FOUNTAIN
200ml , 300ml 250ml, 750ml, 1.25ltr, 2.25ltr 330ml VARIOUS SIZES

MAAZA
Maaza was launched in 1976. Here was a drink that offered the same real
taste of fruit juices and was available throughout the year. In 1993, Maaza
was acquired by Coca- Cola India. Maaza currently dominates the fruit
drink category.
Mango drinks currently account for 90% of the fruit juice market in India. Maaza currently
dominates the fruit drink category and competes with Pepsi's Slice Brand of mango drink and

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Frooti, manufactured by Parle Agro. While Frooti was sold in small cartons, Maaza and Slice
were initially sold in returnable bottles. However, all brands are also now available in small
cartons and large PET bottles.
Glass PET Can Tetra pack
200ml , 300ml 250ml, 600ml, 1.2ltr, 330ml 150ml

MINUTE MAID
The history of the Minute Maid brand goes back as 1945 when
theFlorida Corporation developed orange juice power. The companydeveloped a
process that eliminated 80 percent of the water in orange juice. They branded it minute Maid, a
name connoting the convenience and the ease of preparation (in a minute). Minute Maid thus
moved from a powdered concentrate to the first ever orange juice from concentrate.
Glass PET Can FOUNTAIN
Nil 400ml, 1 liter, 1.25 liters. Nil VARIOUS SIZES

RimZim
Rimzim is a brand of masala (mixed spice) soda currently owned and
marketed by CocaCola in India. The brand was originally part of Parle
Agro since its launch in the 1980s and was sold to Coca-Cola, Limca, Citra
and Gold Spot to Coca-Cola in 1993. Apart from Thums Up and Limca, the rest of the Parle
brands were withdrawn from the market by its new owners. In 2012, Coca-Cola announced that
it was reviving Rimzim for the North India market where it had a strong base.

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KINLEY SODA
Its carbonated forms are used for mixers, and also available in a variety of fruit
flavors. The Kinley brand is used by Coca-Cola for two types of drinks: Packaged
water bottle. A carbonated water with a wide array of variants: tonic, bitter lemon,
ginger ale, club soda and fruit flavored. Soda, also referred to as "pop" or "fizzy
drinks," are flavored and sweetened carbonated drinks which do not contain alcohol.
Available in PET 250ml and 750ml.

KINLEY WATER
Water, a thirst quencher that refreshes a life giving force that washes
all the toxins away. A ritual purifier that cleanses, purifies, transforms.
Kinley water understands the importance and value of life giving force. Kinley water
thus promises water that is as it is meant to be. Water you can trust to be safe and pure.
Available in PET 500ml and 1000ml.

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2.7 MARKETING CHANNELS

Convenience
Includes outlets which are small stores, generally accessible
locally these are often located along side busy roads. It includes
Chemists/STD booth/PAN – beedi shop, etc

Grocery
Outlets primarily engaged in retailing of food and various
household items .It includes Grocery (outlets dealing
mainly in grains, provisions, spices, edible, oil, etc)and
General store(Outlets selling items of day to day
requirement and stocking a variety of branded products)

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Eating and Drinking 1: -
Outlets selling items of eat which are being consumed primary
Standing in the outlet or being taken away for future
consumption Does Not Have Place To Sit. it includes
bakery/sweet shop/juice enter/soft drink shop/tea shop etc.

Eating and Drinking 2: -


Outlets selling items of eats which are being cooked/made
within outlet possible of consuming those product within
the outlet. The Outlet Should Have Place to Set. It
includes sit down restaurant/bars/dhabas/cafes etc

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CHAPTER 3
INTRODUCTION OF THE TOPIC

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3.1 HORIZONTAL EXPANSION
Horizontal Expansion is creating new outlets. It is a strategy used by a business or corporation
that seeks to sell a type of product in numerous markets. Horizontal Expansion in marketing is
much more common than Vertical Expansion is in production. Horizontal Expansion occurs
when a firm is being taken over by, or merged with, another firm which is in the same industry
and in the same stage of production as the merged firm, for example Pepsi has adopted strategy
of Vertical Expansion by which Pepsi wants to improve its sale from Coke monopoly outlets,
means Coke‟s monopoly outlets are being taken over by Pepsi now in this condition to improve
its sale Coke need to open new outlets which is called Horizontal Expansion Strategy. A
monopoly created through Horizontal Expansion is called a Horizontal Monopoly. It is done to
increase market share and to increase the visibility of product in the market which will ultimately
lead to higher sales volume and larger market share. The term horizontal expansion describes as
type of ownership and control.it is strategy used by business to sell its products in numerous
market.
Horizontal Expansion is the expansion of a firm within an industry in which it is already active
for the purpose of increasing its share of the market for a particular product or service.
Horizontal growth is the expanding of a firm's activities into other geographic regions or by
increasing the range of products and services offered to current markets.

3.2 REASON OF HORIZONTAL EXPANSION


The main objective of coke is to acquire more customers and serve
them properly. While doing Horizontal Expansion take care to the competitor‟s strategy. The
main competitor is PEPSI, who has opted Vertical Expansion to generate more sell however
Coke do not believe on Vertical Expansion because Vertical Expansion has limited preview so
COKE is great believer in Horizontal Expansion and this strategy helped to the company to
maintain its leadership in the soft drink industry.
India is a big country having diversified taste and appearance and samecharacter is reflected in
their demography. Horizontal Expansion helps the company to serve the more people and more
customers touch point because in the waste country many customers commute.

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3.3 BENEFITS OF HORIZONTAL EXPANSION
 Helps Improve Route Productivity
 This study will also help to the company to know about their new concepts position in the
market
 This study will also help to the company to know about its promotional activities
involved in advertising.
 Through this study company will know about the availability of its products in them
market.
 This study is helpful to find out the sales trends of the Coke products and its effect on
consumers value and satisfaction.
 By horizontal expansion there will be more outlets of our product In the market
which will sell our product in more quantity. This will generate incremental revenue for
the business
 Through this study company can know about its growth compared to its
major competitor PepsiCo

3.4 HOW TO DO HORIZONTAL EXPANSION?


To do Horizontal Expansion more efficiently we made a profit story and talk to the shopkeepers
according to that story.

Story
Salesperson – hello sir, I am from Coke and I have a proposal that will surely increase your
income. May I present you?
Shopkeeper – yes please present it
Salesperson - Sir if you will start to sell coke then your overall sale will be increased and it is
not tough to sell coke because Coke is the leader in beverage industry and a very well known
brand.
Shopkeeper- yes, but how it can increase my overall sale?

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Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products have a very
good combination with cold drink. If a person wants to purchase any of these products then it is
quite possible that he will purchase Coke and vice versa.
Shopkeeper – But how Coke can increase my profit?
Salesperson – Sir if you are really interested to explore through Coke, you may be able to
sell 1 cases of 200ml, 1 case of 250ml, 1 case of 300ml, 1 case of 6oo ml and 1 case of 1.25liter.
And for start selling Coke you need to invest only Rs. 400. We will provide you 2 empty carets.

Weight of Product Rate of Case Qty. MRP Revenue Profit


(ML/Ltr.) (Rs.) (Rs.) (Rs.) (Rs.)

200ml 306 24 14 336 30

250ml 490 28 20 560 70

300ml 372 24 18 432 60

600ml 720 24 35 840 120

1.25lts 660 12 60 720 60

(Table-3.1)

Sir your daily profit from coke (in Peak season) = Rs.340
Profit per month (in Peak season) (340 X 30) = Rs.10200
Profit of whole season = Rs.30600
(Because the peak season for Coke is only of 3 months)
Profit of rest of the 9 months = Rs.45900
(Because as per the Coke assumption income in the off season is decreased by half in
comparison to the Peak season)
Profit of whole year = Rs.76500
Your investment = Rs.2948
Your ROI = 76500 * 100/2948
= 2594.98%

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Shopkeeper – But I do not think this much will work what about those stuffs that needs to
support trading of Coke and I have to provide them like electricity, ice etc.

Salesperson – Sir that‟s a really nice question, we can understand your anxiety and we have
to offer much more for this. If you will purchase 1 case then we will offer you 3 bottles of water
and if you will purchase 2 cases or more than that then we will offer you 8 bottle of water. More
over if you are keeping your refrigerator for the storage purpose of Coke if will be all right as the
refrigerator can work by consuming power as low as 2 units per day which will cost you Rs.8 per
day.
So, what you have to say about our offer?
Shopkeeper – Yes, I think it will be a nice idea to accept your offer.

Salesperson – Thank you sir and Congratulation (Shaking Hands) I will be dropping my
products within 10 minutes as I have the carrying vehicle with me and within next 15 minutes
you are all set to go for selling Coke.

On some shops we set refrigerators and to keep a refrigerator we need to collect 1 photo copy of
Voter ID or Aadhar card or Rashen Card, 1 photo copy of electricity bill and 1 passport size
photo of shopkeeper.

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3.5 ADVANTAGE OF HORIZONTAL EXPANSION OVER VERTICAL
EXPANSION
Both expansion techniques are meant for increasing sales volumes. But in horizontal expansion
company can earn more profits by spending less. Let‟s see the profit story of horizontal
expansion.

Impact of New Outlet on Business


Measure 2017 2018
Vertical Growth
No. of Exiting outlet 10000 10000
by RED Execution
Total Volume(in lac pay Cases) 50 55
VPO in pay Cases 500 550 Horizontal
No. of new Outlet 2000 Growth by New
outlet Opening
New outlet VPO 125
Increase Volume(in lac pay Cases) 2.5
Grand total Volume(in lac pay 50 57.5
Cases)

(Table-3.2)
Above tables clearly indicate the importance of opening new outlets. By doing vertical expansion
only growth in profit was not very effective but because of opening just 200 new outlets sales
increased to a large extent.

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3.6 ACHIEVEMENT

Horizontal Expansion (NC)


Owner
Sr.No. Date Outlet Name Mobile No. Address Channel MGR
Name
STL - Kirtan Pandiya Distributor - Jiya Enterprise
1 03-05- Amit kumar Marutinandan 9512714780 Opp. DMART & E&D Pratik Sir
18 yadav Chainese K.G. House D, 16
Bhagwati nagar
Society L.B.S.
Road , Bapunagar,
Ahmedabad
2 04-05- Vinod Bhai Shree 9727155453 Opp. Lucky Oil Convenience Pratik Sir
18 Mahalaxmi & mill, Phase-2
Parlour Morden Bakary,
GIDC Naroda,
Ahmedabad

3 05-05- Pintu Bhai Charbuja Pan 9898851483 Opp. Shreeji state, Convenience Pratik Sir
18 Suttar Karkhana
Road, GIDC
Naroda,
Ahmedabad
4 05-05- Pintu Tomar Jay Ganesh 9928186730 Plot No.- 13 , NR. Grocery Pratik Sir
18 Hanuman Mazada Control,
Kirana Store GIDC Naroda,
Ahmedabad
5 07-05- Virendra Bhai Patel Pan 9998929118 Shop No. B6, Convenience Druve Raj
18 Ghevar Complex, Sir
Shaibhag,
Ahmedabad

6 08-05- Laxman Bhai Masti Juice 7624041899 Gate No. - 3 Civil Convenience Druve Raj
18 Hospital, Sir
Ahmedabad

7 08-05- Rupali Ben Rupali 8140286164 Opp. Cancer Convenience Druve Raj
18 Chawana Hospital, Civil Sir
Hospital,
Ahmedabad

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Owner
Sr.No. Date Outlet Name Mobile No. Address Channel MGR
Name
8 09-05- Ram Bhai Kohinoor Cold 7624041848 Opp. Chela Bus Convenience Druve Raj
18 drink Station, Megani Sir
Nagar,
Ahmedabad

9 11-05- Jagdish Bhai Cehar Pan 9898000327 Opp. Kalrav Convenience Rahul
18 Parlour Residency, Nana Parmar
Chiloda,
Ahmedabad
10 11-05- Vasant Bhai Bahuchar 7874884540 Opp. Nana Chiloda Convenience Rahul
18 Krupa tea stall Road, Ahmedabad Parmar

11 18-05- Meet Bhai Shree Ram 7359678962 Shop No. 11 NR. Grocery Vinod
18 Patel Kirana Store Saguna Park, 2BH Solanki
Ashish Cinema,
Odhav,
Ahmedabad
12 19-05- Vivek Bhai Raghuveer 9157405145 Shop no. B/118, Convenience Vinod
18 Mananka Pan Parlour Bileshwar Ind. Solanki
Estate, Opp.
G.V.M.V. Octroi
Naka, Kathakali,
Odhav,
Ahmedabad
STL - Susmil Patel Distributor - Deep Marketing
13 21-05- Ajay Yaswant Parvati 9712609214 239, NR. E&D Himanshu
18 Bhai Prajapat Restaurant Ghanchini wadi, sir
Bhutni Ambali,
Ahmedabad
14 22-05- Kirit Kumar M.K. General 9712451450 1607, Behind Grocery Himanshu
18 Parmar Store Mahaluxmi gate, sir
Raikhand
Vankarvas,
Ahmedabad
15 22-05- Akash Bhai Gupta 9723441387 NR. Shree Grocery Himanshu
18 Gupta Provision Siddhivinak Ganpti sir
store Mandir, JamalPur,
Ahmedabad

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Owner
Sr.No. Date Outlet Name Mobile No. Address Channel MGR
Name
16 24-05- Ariff ali Aarif Pan 9898831103 Shop No. Royal Convenience Brijesh
18 Saiyad ali Parlour Plaza NR. Bus Jain
Station, Ramol
Gham,
Ahmedabad
17 25-05- Suraj Bhai M.S. Pan 8487919370 400/1/1 Shivaji Convenience Brijesh
18 Mochi Parlour Nagar, Opp. Vimal Jain
Nagar,
Ahmedabad
18 28-05- Ghanshyam Jain Namkin 9924457027 1 G.F. Sidharth Convenience Kiran Zala
18 Bhai House & Cold Nagar, NR. Jain
Derasar, Odhav,
Ahmedabad
19 30-05- Ravi Kumar Bhagyaluxmi 8460649804 Shop No. 3 Convenience Kiran Zala
18 navneetbhai Pan Parlour Ramrajya
Cooperative
Society,
Viratnagar, Odhav,
Ahmedabad
20 01-06- Babu Bhai Yaswant Pan 8141418631 Opp. Satam Nagar, Convenience Karmveer
18 Parlour Nagarvel Sir
Hanuman RD
Amraiwadi
Ahmedabad
STL - Jagdish Sir Distributor - Shreeji Krupa Enterprise
21 02-06- Ameeben Amul Dudh 9904298585 38, Atmaram Park, Convenience Manoj
18 Patel Ghar Opp. Shyamsundar Zala
Soc. Isanpur Road,
Ahmedabad
22 02-06- Viram Bhai Gokul Dairy & 9016162770 20, Asha C H Soc Convenience Manoj
18 Desai Sweet Palace Ltd. NR. Verai Zala
Mata Mandir,
Isanpur,
Ahmedabad
23 04-06- Nikesh Kumar Adhyshakti 9824313565 Common Plot, Convenience Manoj
18 Shah Pan Parlour Opp. Makita jivan Zala
School, Narol high
Smarat nagar,
Isanpur,
Ahmedabad

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Owner
Sr.No. Date Outlet Name Mobile No. Address Channel MGR
Name
24 07-06- Akhunji Zamazam 9377991342 Shop No. 3 Marjan Grocery Narendra
18 Abdulgarni Bakery & Residency, NR. Sir
General Store Beduji Complex,
Vatva,
Ahmedabad
25 09-06- Shailesh Bhai laxmi Kirana 9726859426 Opp. Jamapra, Grocery Shailesh
18 Dabhi store Village Aslalee, Jadeja
TA.Daskroi
Ahmedabad
26 11-06- Jagdish Bhai Chamunda 9998932918 Opp. Swaminaryan Grocery Shailesh
18 Prajapat kirana Store Society, Jadeja
TA.Daskroi
Ahmedabad
(Table-3.3)

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CHAPTER 4
LITERATURE REVIEW

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LITERATURE REVIEW

(Poddar, June 2017) The analysis the horizontal expansion strategy of coke and at the end of
the research she found that the company should take care of its existing retailers because they are
the main instrument of promotion for any company so old retailers should be fully satisfied with
the company. Though Coca Cola was favored, purchase was still influenced by easy Availability,
long time presence of their brands in the market and Service. Retailers stressed more upon
company service and margin as a prime factor for satisfaction and consumer stressed on
experience and refreshment.

(Lee, 2016) The Coca-Cola Company leads the overall soft drinks market, while PepsiCo
continues to trail behind by a large margin. The Coca-Cola Company‟s sharp focus
on soft drinks, wider geographical presence and wider brand portfolio underpin its
strong global leadership. The company‟s equity investment in Cold, the brands swap with
Monster, and full acquisition of Culiangwang indicate its determination to diversify its revenue
streams. In contrast, PepsiCo made no major acquisitions within soft drinks in 2014 or 2015.
Both Nestlé and Danone have mass market and international premium brand platforms, which
work well catering for different income groups. Nestlé did not see substantial growth in RTD tea;
however, it outpaced rivals in RTD coffee thanks to its dominance in China. Danone‟s focus in
bottled water may restrict its long-term market share gains as consumers demand more
diverse drinks.

(KHAN, 2015) This study shows before setting price of your product we have to keep in mind
that how much discount should we give to our retailer, wholesalers and how many we pay EBIT
and we gain profit on that product. This is also necessary to know about competitive products
price on what price, nestle and fresher are selling. They reduce their prices by stop importing
pulp internationally and they started their production on local line. Initially they import pulp
from foreign countries but due to shortage they start producing pulp in local area of Pakistan
which reduces the cost.

(C, 22nd Sep. 2014) A case study on Retailer satisfaction for Horizontal Expansion and at the
end of the research they conclude that Product features are having impact on retailer‟s

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satisfaction. All these factors are directly influencing the retailers to sell Coca-Cola products.
The retailers are giving more priority for key items of factors, such as advertisement on internet
and magazines, interior and exterior environment, word of mouth, dangler and wall paint the
company should consider these while developing strategies. Hence company has to understand
the priorities identified through factor analysis from different dimensions of product, price,
availability, salesman behavior, promotion and advertisement while developing marketing
strategies for successful implementation of Horizontal expansion strategy for market expansion.

(Kumar, 27 Feb.2013) The success of the Coca cola Company depends on satisfying the
customers as well as channel members. This is the area of retail business and to win the race and
be on the top companies are out Performing by spending more on trade promotions. The channel
members play a key role in increasing the sales of FMCG products. So the company has to pay
more attention on distribution, promotion and availability of brand to win sales in the market.
The study concludes that the Hindustan Coca Cola Beverages Pvt. Ltd has to strengthen its
product line by introducing new flavors and new sizes. It also has to increase the stock holding
and availability of Coke Brands through motivating channel members by offering attractive
schemes and incentives.

(FOSTER, 29 FEB 2012) Indian market is one of the major developing economies in the world.
The Coca-Cola Company is mentioned as a global company with global products and global
activities. In 1980 the company was moving towards centralized control. At that time, the motive
of the company are to be global in order to expand geographical wise into many of the countries
in which the company does business today. In 1990 the world began to start smaller and smaller
as a town for the global companies. Globalization forced changes to appear so fast that many
countries could hardly manage the new global environment.
As a result, the very forces that were making the world more connected and homogeneous were
simultaneously triggering and preservation of unique culture identity. The world is demanding
greater flexibility, responsiveness, local sensitivity, nimbleness, speed, transparency and local
sensitivity had become essential to success‖ (Draft, 2000). Coca- Cola Company sees itself not as
a global organization, but as a multi-local enterprise

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(Ali, 2009) After the study Researchers feel that Nestle can strengthen their ties with their
retailers by using innovative strategies. One suggestion that we would like to give is to open
retailer service centers where the retailers and the management should meet once after three
months to discuss the future collaboration, innovations, problems and challenges. This would not
only help in development of mutual understanding also in finding innovative solution to their
problems. At the same time Nestle can help their retailer in „entrepreneurship‟ ventures or other
kind of support services for their progress. Retailers need to be well informed about various
products/services and they should be guided well in advance about the new launches so that they
can pass out this information to customers.

(Hill, 2009) According to Cokecce.com (2007), Coca-Cola trains their managers in their
management school, to make them aware of the global perspective of their operations. Marketing
is one of the back bones of any global industry in any country. As to stay in the market ahead
from the competitors, marketing plays the major role in Indian market for soft drinks. The post-
liberalization period in India saw the comeback of Cola but Pepsi (one of the major competitor
India) had already beaten Coca-Cola to the punch, creatively entering the market in the 1980's in
advance of the liberalization by the way of joint venture. Coca-Cola Company benefited from
Pepsi creating demand and developing the market for soft drinks.

(Rodriguse, 2009) Coca-Cola Company do franchise with the local manufacturing bottling
companies through which they have a local response and local touch. In India COCA-COLA
COMPANY have 46 bottling plant from which 22 are company own and rest are the franchise
operated plant (Coca-Cola, 2010). After re- entering the Indian market in 1993 the COCA-
COLA COMPANY operations grown rapidly through a model that supports local business which
includes over 1.3 million retailers and over 7000 distributors across the country. Coca-Cola has
been successful in the global market as well as Indian market because it follows the local
strategies and is able to deliver as per the needs of the local people by manufacturing and
distribution by the local company

(Hannaford, 2007) Cola Wars, The prototype of all marketing and branding struggles is the
Cola wars. PepsiCo and Coca-Cola keep rolling out the big guns: dueling pop stars, and new

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branded products in the form "Coca-Cola Blak" and "Pepsi Vanilla. "Coca-Cola zero" and "Diet
Pepsi Jazz." They are fighting on the television, in the fast-food restaurants, and in the
supermarkets; they are also districts dueling in the schools. of the biggest pushes of the past
decades has been convincing school, universities, and other institutions to go all-Coke or all-
Pepsi, in return for a (small) cut of the gross sales.
All this worldwide activity can't disguise an unpleasant core reality for the vendors: U.S,
carbonated soft drink (CSD) sales decreased by 0.7 percent in the year the first dollar decline in
twenty years, after nearly a decade per capita declines and absolute ins. That includes in
companies- leading brands: at 2 percent lower for Coca-Cola Classic and 3.2 percent for Pepsi.
That not all. CSD sales in the United Kingdom were down as well, as well as in some other
European countries.

(Swenson, 2001) Global strategy, Coca-Cola Company historical strength came from operating
as a ―multi-local‖ business that for a very long time relies mostly on the insight of local bottling
partners. That's why the global strategy of Coca-Cola allows its business in more than 200
countries to act according for local laws, local culture, and local needs and so on. Coca-Cola
pursues an assumed global strategy, allowing for differences in packaging, distribution, and
media that are important to a particular country or geographical area.

(Alvarado & Kotzab, 2001) Supply Chain Management: The Integration of Logistics in
Marketing Both researchers found that based on the phenomenon of Efficient Consumer
Response (ECR), the nature of Supply Chain Management (SCM) is conceptualized from a
channel governance point of view. The theoretical typology of intrafirm governance, introduced
by Heide, is applied. While ECR gains in importance for retailing business practice, few
theoretical explanations for the effectiveness of ECR and SCM have been put forth. It is
suggested that there is a need to conceptually capture the fundamental structure and processes for
an effective relationship to exist between manufacturers and resellers. This is even more so given
the importance of logistics integration into the marketing realm of channel management to
successfully implement these critical systems.

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(William , 1999) Brand preference in soft drinks sector reveals purpose of study of factors
responsible for brand preference in soft drink industry, increasing competition more, due to
globalization is motivating many companies to base their strategies almost entirely on building
brands. Brand preference means to compare the different brands and opt for the most preferred
brand. This brand preference is influenced by various factors. In the identification of factors
affecting the brand preference, it was concluded that Brand persona is the most effective factor
that affects the brand preference. This Brand personally deals with the personality aspects or the
external attributes of brand, thus it can be said that consumer prefer any brand by looking at the
external attributes of a brand.

(Tanner, 1990) A marketing strategy is a process of a company or organization to focus limited


resources on the best opportunities to increase sales and thereby achieve a sustainable
competitive advantage. The marketing mix includes the product, price, communications,
distribution, and services provided to the target market. The final stage Outcomes involves
analysis of firm‟s product position and customer satisfaction resulting from implementation of
the strategy.

(Puravankara, 2007)According to Dinesh Puravankara after research Found that the company
needs to reduce its dependence on carbonated beverage and diversify its product portfolio into
the noncarbonated sector to remain competitive. He argued that the best way to become a total
beverage company is through addressing the key issues identified in this research and eventually
moving towards a learning organization.

(Staff, 2017)Almost a decade ago, several areas in the vicinity of Coca-Cola India‟s plant
locations had intermittent or no power supply. Standard coolers took a lot of time to cool and
didn‟t have a chilling retention capability either. In such a situation, bottles of Coca-Cola, Fanta,
and Sprite could not be chilled. There was a dire need for coolers that could retain cooling in the
absence of continuous power supply. The need to come up with a localized solution was
triggered by factors related to import of fountain equipment which implied an additional import
duty and freight cost. Up till 2011, the Company had placed merely 3000 fountain equipment
across India and all of these were being imported. In the last two and a half years, the lead bottler

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Hindustan Coca-Cola has placed almost 2,500 of these in the market. The number of fountain
equipment has doubled in the span of the last three years, as compared to the last 10 years.

(Firto-lay, 2007) Researcher found that PepsiCo inc. maker of the nation‟s second – best selling
soft drink, aims to score big with consumers at Sunday‟s Super Bowl for the first time. PepsiCo‟s
soft drink arm, Pepsi-Cola North America, will sponsor the big game‟s halftime show – this year
featuring the artist once again known as Prince. Frito-Lay Inc of Plano is a unit of PepsiCo,
based in Purchase, N.Y. Beverage industry experts say that even though Pepsi may pay a king‟s
ransom for the naming rights to the show, it will ultimately pay off. “The Super Bowl and the
halftime show are great vehicles to promote brands and build brand equity”.

(D.B.Bagul, 2014) Research survey was completed then result is that he Coca Cola leads other
competitors in beverage industry in terms of market share, customer demand and customer
satisfaction. The increase in number of consumers, brand awareness of Coca Cola has opened
many new expansion opportunities both in terms of horizontal and vertical market. There is a
large scope for market penetration in rural areas. Rural Areas are developing rapidly and has
created a large base for marketing different product. The beverage industry is growing
continuously and will continue to do so in coming years.

(Nair, 2008) Nair Suja in her book ‗Retail Management„ has tried to explain the growth of
retailing in Indian context especially in the context of new economic policy, global economic
development, changes in the marketing and economic system as well as changing pattern and
classification of economic activity. The author has tried to stress that there is a significant effect
of liberalization and privatization policies on development of retail format. According to author,
retailing has come to occupy a prominent position in today„s modern society. Inspite of the
Indian retail revolution, it is said that over 90 percent of the 20 percent urban India are still
towards the traditional retail. Now some worthy modern organized retail format is slowly gaining
acceptance and can easily be seen to be emerging as a strong contender. The author has tried to
make an attempt to communicate various developments occurring in retail market especially on
account of evolving consumer behaviour typically the evolution of retail.

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CHAPTER 5
RESEARCH METHODOLOGY

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5.1 PROBLEM STATEMENT
 The company wants to increase its business horizontal expansion in Ahmedabad City.
 The company wants to know the increase or decrease in sales to expand its business
horizontally.
 The company wants to know the reason for switching behaviour of retailers for their
products.
 The company wants to know the effects of different beneficiary schemes brought in the
market for retailers and their acceptance.
 The motivating factors for retailer to stock Coca-Cola Factors.
 To find out demotivating factors which prevents retailers from stocking Coca-Cola products.

5.2 OBJECTIVE
The objectives of the project are:
1. To understand the behavior of retailers not selling coca cola.
2. To know which product of coca cola is being sell more in market.
3. To study the reason behind selling competitors‟ product.
4. To study the preference of prospective retailers.
5. To study the availability of Chilling Equipment.

5.3 SCOPE OF THE STUDY


This project work is helpful in making a deeper analysis of the horizontal expansion strategy of
coca cola in Ahmedabad. This project work will be helpful in conducting higher studies
regarding the overall satisfaction of Coca- Cola from retailers‟ perspective. This report will help
the company in devising the further marketing and sales strategies.
Consumption of soft drinks has increased tremendously in India. Every age of group like it, now
a day it become a household necessary item. In field of marketing many kinds of surveys are
conducted by Coca-Cola team time to time. By the specific survey, which is conducted by Coca-
Cola organization want to know about the right picture of Ahmedabad market. This work study
provides the increase in number of retailers and increasing brand awareness of coca cola large
number of outlets are willing to keep Coca cola products. This has also helped for higher
penetration into the market.

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5.4 RESEARCH DESIGN:
5.4.1 Descriptive research design:
Descriptive research design is a scientific method which involves observing and describing
the behavior of a subject without influencing it in any way. The importance of descriptive
research is:
 To describe characteristics of a population or a phenomenon.
 To determine the answers to who, what, when, where and how questions.
 To analyze the segment and target markets.

Research Design Descriptive research


Research Instrument Questionnaire
Sample size 150
Sample area East Ahmedabad
Sampling method Non Probability/ Convenience Sampling
Statistical package SPSS
(Table-4.1)

5.5 SAMPLING
5.5.1 Population:
Population is a set of all the units which includes all the elements of the researcher‟s
interest here in this study, the population are the retailers of the coca cola in East
Ahmedabad.

5.5.2 Sample Units:


The researcher proposes to collect primary data from selected respondents on criteria
concerning promotional strategies used by the Coca Cola in India. Which are located in
the city of East Ahmedabad which will act as a representative unit for India.

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5.5.3 Sample Size:
The sample size is 150.

5.5.4 Sampling Method:


Sampling method are classified as probability or non-probability in probability sampling
method, each member of the population has a non-zero probability of being selected
probability sampling includes random sampling, systematic sampling and satisfied
sampling. The sampling technique used here is Non Probability/ Convenience
Sampling.

5.5.5 Research Instrument:


Research instrument are the measurement tools used to obtain information on the topic of
the research. The research instrument used in this study is Questionnaire.
Questionnaire is a set of questions has been prepared to ask a number of questions and
collect answers from respondents relating to the research topic. Here a structured non –
disguised questionnaire is used as a research instrument for collection of primary data.
These questions would help in carrying out detailed study on the proposed topic. The
type of questions used are close ended. Questions which require scaling are drafted with
appropriate scales in order to make the research more precise. Drafting different types of
questions is advisable as it would make the questionnaire compact as well as open to
suggestions from the respondents.

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5.6 HYPOTHESIS
H0: There is no significant relation between types of outlet & willingness to sell soft drink.
H1: There is significant relation between types of outlet & willingness to sell soft drink

H0: There is no relation between the types of Outlets and preference of coke products.
H1: There is a relation between the types of Outlets and preference of coke products.

H0: There is no relation between the types of retailers and preference in packs of products.
H1: There is a relation between the types of retailers and preference in packs of products.

H0: There is no relation between reason for not sell Coca-Cola products and satisfaction level of
retail outlets.
H1: There is relation between reason for not sell Coca-Cola products and satisfaction level of
retail outlets.

5.7 DATA COLLECTION SOURCES


A marketing researcher has to make a plan for collecting data which may be primary data,
secondary data or both.
1. Primary data: The primary data was obtained by administering survey method, guided by
questionnaire to the consumers. The following type of questions, were asked in the questionnaire
 Rank questions.
 Multiple choice questions.

2. Secondary data: The secondary data are collected through various sources like
 Secondary data are collected through internet related to company, competitors etc.
 Review of articles being published on the topic in various magazines and newspaper

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5.8 BENEFICIARIES OF STUDY
 Helps Improve Route Productivity
 This study will also help to the company to know about their new concepts position in the
market
 By horizontal expansion there will be more outlets of our product In the market
which will sell our product in more quantity. This will generate incremental revenue for the
business
 This study is helpful to find out the sales trends of the Coke products and its effect on
consumers value and satisfaction.

5.9 LIMITATIONS OF THE RESEARCH WORK


1. The research is an academic effort which constraints time, cost and geographical area.
2. The respondents may be biased or influenced by other factors.
3. An interpretation of this study is based on the assumption that the respondents has given the
correct information.
4. The data is collected from 100 retail outlets only, generalization is inevitable.
5. The sample size was limited
6. Behaviour of many retailers was not co-operative

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CHAPTER 6
ANALYSIS AND INTERPRETATION

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Q.1 What type of retailer are you?

Table 6.1 Type of outlet


Outlets Frequency Percent Valid Percent Cumulative Percent

E&D 10 6.7 6.7 6.7


Grocery 68 45.3 45.3 52.0
Convenience 72 48.0 48.0 100.0
Total 150 100.0 100.0

Chart 6.1 Type of outlet

Types of retailers
E&D Grocery Convenience

7%

48%

45%

INTERPRETATION :
 The study was undertaken of 150 retail outlets of the east Ahmedabad.
In this Graph Convenience Stores are 48% in percentage whereas Grocery Store are of
45% and E&D Bakery are 7%
 By knowing the above graph it is very obvious that the visited area included more
number of Convenience Store and hence our more effort was to enroll these stores to
expand the business.

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Q.2 If there are no drinks in the outlet, are you willing to sell soft drinks?
(Table-6.2 Soft Drink Prefer)

Soft Drink Frequency Percent Valid Percent Cumulative Percent

Yes 89 59.3 59.3 59.3


No 61 40.7 40.7 100.0
Total 150 100.0 100.0

(Chart-6.2 Soft Drink Prefer)

Preference of Soft drink

41%
Yes
No
59%

INTERPRETATION :
 Majority of respondents 89 out of 150 willing to sell soft drinks and 61 out of 150
respondents are not willing to sell soft drink. It means 59.3% retail outlets are interested
in the sell soft drinks. The rest 40.7% retail outlets where either not interested to sell soft
drink.

41%

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Q.3 Which brand of soft drink will you prefer to sell?
(Table-6.3 Prefer Brand)

Prefer Brand Frequency Percent Cumulative Percent

COCA COLA 31 20.7 20.7

Another Brand 58 38.6 59.3

Not Interested 61 40.7 100.0

Total 150 100.0

(Chart-6.3 Prefer Brand)

Soft drink brand preference

38% 41%

Not Interested
COCA COLA
Another Brand
21%

INTERPRETATION :
 After the Study Among 150 Outlets 31 outlets are prefer to sell COCA-COLA products
and 58 outlets are Prefer to sell another brand like as Pepsi, Davat, Jeeru etc. and 61
outlet not interested in any kind of soft drinks because some outlets don‟t want to expand
their business from current business or some outlets have space issue and some outlets
are interested but for the future expansion not for current sales and the last and most
important issue is they don‟t have chilling equipment‟s in there outlet

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Q.4 Why will you give the preference to coca cola?
(Table-6.4 Prefer Coca-Cola)
Prefer Coca Cola Frequency Percent Cumulative Percent

Brand name 5 3.3 3.3


Customer loyalty 8 5.3 8.6
Best Offers 0 0 0
Price 0 0 0
0
Quality 1 .7 9.3
Above all 17 11.3 20.7
Not Interested 119 79.3 100
Total 150 100

(Chart-6.4 Prefer Coca-Cola)

Preferance of Coca-Cola

3%5% Brand name


1%
11% Customer loyalty
Best Offers
Price
Quality
Above all
80%
Not Interested

INTERPRETATION :
 The above table shows that 5 retail outlets preferred to Coca-Cola from Brand name and
8 retail outlets preferred to Coca-Cola from Customer loyalty and 17 retail outlets
preferred all the factors i.e. the price, brand name, customer loyalty, best offers and
quantity.

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Q.5 If the preference is Coke Co., then which product you prefer more? (Table-6.5)

Product Frequency Percent Cumulative Percent

COCA COLA 2 1.3 1.3


Thums up 14 9.3 10.6
Sprite 4 2.7 13.3
Limca 2 1.3 14.6
Fanta 0 0 14.6
Maaza 9 6.0 20.6
Pulpy Orange 0 0 20.6
Nimbu Fresh 0 0 20.6
Not Interested 119 79.3 100.0
Total 150 100
(Chart-6.4 Coca-Cola Products)

Product Preference
1% COCA COLA
3%
9% 1% Thums up
6%
Sprite
Limca
80% Fanta
Maaza
Pulpy Orange
Nimbu Fresh

INTERPRETATION :
 After the research study of 8 different types of product under the Coca-Cola brand most
preferable product according to retailer is coke and for the same reason they maintain
highest stock of it, but based on above graph analysis thumps up seems to be most
preferable product as it hold a highest demand from customer with approaxmatiely hold
9 % of market share.
 Whereas when we talk about non carbonated drink maaza is holding major market share
with 6% where as drinks such as :- pulpy orange ,Minute maid & Nimbu fresh are not
liked by the retailers as it as it doesn‟t have high customer demand.

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Q.6 Which packs do you prefer?
Pack Frequency Percent Cumulative
Percent

PET 24 16.0 16.0


All of these 7 4.7 20.7
100.0
Not Interested 119 79.3
Total 150 100.0

(Table-6.6 Pack Prefer)

Pack Prefer
0%

0%
16%
0% RGB
5% PET
Cans
Tetra
All of these
Not Interested
79%

(Chart-6.6 Pack Prefer)

INTERPRETATION :
 The company provides the beverages in different packing as RGB- Regular glass bottles,
PET bottles or plastic bottles and out of these most preferable are PET as they are more
user friendly they can be taken away and there is no liability of being damaged which is
the case with RGB bottles but even after this they are the second most preferable packing
as this is due to its low cost and it doesn‟t contain any plastic material and therefore
environment friendly. 4.7% of outlets i.e. 7 outlets prefer all kinds of packaging (RGB,
PET, Tetra packs, Cans).

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Q.7 Average number of customers visiting store every day to buy COCA-COLA Products?
(Table-6.7 Customer Visiting)

customers visiting store every day Frequency Percent Valid Percent Cumulative
to buy COCA-COLA Products. Percent

Less then 10 2 1.3 6.5 6.5


10 to 20 2 1.3 6.5 12.9
20 to 30 11 7.3 35.5 48.4
More then 30 16 10.7 51.6 100.0
Total 31 20.7 100.0
Not Interested 119 79.3
Total 150 100.0

Average number of customers visting the


stores
60
Number of Customer

50

40

30

20

10

0
Less then 10 10 to 20 20 to 30 More then 30

(Chart-6.7 Customer Visiting)

INTERPRETATION :
 According to the graph and table, 2 outlets were visited by less than 10 customers and the
next two outlets were visited by customers between 10 to 20 to buy COCA-COLA
products. Moving on, 11 outlets say that 20-30 customers visit them daily and 16 out of
31 retail outlets were visited by more than 30 customers.

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Q.8 According to you which of the following offers will benefit your business?

Benefit Offers Frequency Percent Cumulative Percent

Free bottles 29 19.3 19.3


Less MRP on purchase 2 1.4 20.7
Gift Vouchers 0 0 20.7
SMS Offers 0 0 20.7
Not Interested 119 79.3 100.0
Total 150 100.0

(Table-6.8 Benefit Offers)

Preference of benefit offers

19%
2%
Free bottles
Less MRP on purchase
Not Interested

79%

(Chart-6.8 Benefit Offers)

INTERPRETATION :
 According to graph and table 29 out of 31 retail outlets say that they are benefited by free
bottlers offer. Free bottles offer include 3 free Kinley water bottles on the purchase of 1
case and 8 water bottles on the purchase of 2 case of any Coca-Cola Product. Moreover 2
out of 31 retail outlet say that they get benefited by less MRP on purchase offer.

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Q.9 Do you think that the business of these soft drinks is seasonal?
(Table-6.9 Soft Drink Season)

Soft Drink Season Frequency Percent Valid Percent Cumulative


Percent

Yes 11 7.3 35.5 35.5


Neutral 20 13.3 64.5 100.0
Total 31 20.7 100.0
Not Interested 119 79.3
Total 150 100.0

79.3
80
70
60
50
40
30
20
13.4
7.3
10
0
Not Interested Yes Neutral

Seasonal Market

(Chart-6.9 Soft Drink Season)

INTERPRETATION :
 According to the graph and table which shows 11 out of 31 retail outlets say that Soft
drink has an Seasonal Market and 20 retail outlet said that Soft drink has an on-going
demand and it‟s demand may varies according to different season.

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Q.10 Which Chilling Equipment you use?
(Table-6.10 Fridge)

Fridge Frequency Percent Valid Percent Cumulative


Percent

Pepsi Fridge 4 2.7 12.9 12.9


Coca-Cola Fridge 12 8.0 38.7 51.6
Own Fridge 7 4.7 22.6 74.2
Both Pepsi and Coca-Cola Fridge 8 5.3 25.8 100.0
Total 31 20.7 100.0
Not Interested 119 79.3
Total 150 100.0

Use of Chilling Equipment


3% 8%
5% Pepsi Fridge
5%
Coca-Cola Fridge

Own Fridge

79% Both Pepsi and Coca-Cola


Fridge
Not Interested

(Fridge -6.10 Fridge)

INTERPRETATION :
 From the above pie chart it is 69nalysed that Outlets keep mostly Coca-Cola Chilling
equipment.
 Coca-Cola fridge holding outlet are more and next is own fridge holding outlets and only
4 outlets are keeping Pepsi fridge out of 31 outlets & both Pepsi and Coca-Cola are 8 in
number.

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Q.11 What do you do if a Brand which you prefer is not delivered to you on time?

(Table-6.11 delivery Issue)

When not delivered Coca – Cola Product Frequency Percent Valid Cumulative
Percent Percent

Go for other Brand 12 8.0 38.7 38.7


Call to Distributor 0 0 0 38.7
Call to Company’s Sales Person 17 11.3 54.8 93.5
Stop Selling that Brand 2 1.3 6.5 100.0
Total 31 20.7 100.0
Not Interested 119 79.3
Total 150 100.0

When not delivered COCA-COLA products

8%
11% 1% Go for other Brand
Call to Distributor
Call to Company’s Sales Person
80%
Stop Selling that Brand
Not Interested

(Chart-6.11 delivery Issue)


INTERPRETATION :
 Above mentioned chart shows retailers response about not delivering their
product with in time limit , it shows 8% out of total would chose to another
brand whereas 11% Says that they would call to company sales person and 1%
says that they will refuse selling the brand.

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Q.How often do you Order?

Order Frequency Percent Cumulative Percent

Monthly 0 0 0.0
Weekly 31 20.7 20.7
Daily 0 0 20.7
Not Interested 119 79.3 100.0
Total 150 100.0

(Table-6.12 Order)

Order

21%

Weekly
Not Interested

79%

(Chart-6.12 Order)
INTERPRETATION :
 Based on above pie chart all 31 outlets give their order on weekly basis, the
major reason being so is the company policy that they make trip twice a week on
same route.

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SECTION -„B‟
The questionnaire was divided into three parts considering the areas to be covered in research.
The second part of the questionnaire dealing with reasons of not selling the soft drinks in their
stores
Reasons not selling soft drink product?
Frequency Percent Valid Percent Cumulative
Percent

Profit margin 5 3.3 8.2 8.2


Availability issue 20 13.3 32.8 41.0
Schemes 1 .7 1.6 42.6
Chilling equipment 24 16.0 39.3 82.0
Other 11 7.3 18.0 100.0
Total 61 40.7 100.0
System 89 59.3
Total 150 100.0

(Table-6.13 Reasons not selling soft drink)

Factors
3%

13% 1% Profit margin


Availability issue
Schemes
16%
Chilling equipment
60%
Other
7% Not Interested

(Chart-6.13 Reasons not selling soft drink)


INTERPRETATION :
 The study had 61 respondents not selling cold drinks in their stores out them
giving the options the most preferred reason of not selling them was due to lack
of the chilling equipment and space availability. The major reasons were also the
profit margin and other reason with thus the stores at smaller level usually don‟t
stock them as they are served chilled.

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SECTION -„C‟
This part of the questionnaire deals with the reasons with non-acceptance of the coca cola or its
products on their shelves. The respondents were given various multiple options under them and
further results were interpreted.
Reason for another brand (Table-6.14)

Responses Percent of

N Percent Cases

Profit Margin 25 24.8% 43.1%


Quality 16 15.8% 27.6%

Reason for Schemes 8 7.9% 13.8%


a
another brand? Availability of stoke 10 9.9% 17.2%
Customers Demand 33 32.7% 56.9%
Other 9 8.9% 15.5%
Total 101 100.0% 174.1%

a. Dichotomy group tabulated at value 1.

35

30
Number of Respone

25

20

15

10

0
Profit Margin Quality Schemes Availability Customers Other
of stoke Demand
Reasons

(Chart-6.14 Reason for another brand)


INTERPRETATION :
 According to graph and table which shows that 58 respondents which are ready
to sell to another brand (i.e. Pepsi, Davat, Jeeru, Fizz) on their sell due to various
reasons associated with the major issue was customer demand was very high for
another brand. The second major issue was the Profit margin are more than
Coca-Cola products. Followed by the various other issues such as the quality and
non-preferable schemes were also the contributing factors towards non-selling of
Coca-Cola product.

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Question - Reasons not selling coca cola product? (Table - 6.15)
Satisfaction Level Price Quality Schemes Customers Chilling
Demand Equipment
1 0 14 3 19
Highly Dissatisfied

Dissatisfied 25 3 20 14 21

Neutral 21 12 24 25 17

Satisfied 11 34 0 14 1

Highly Satisfied 0 9 0 2 0

Total 58 58 58 58 58

Weight average 2.7 3.84 2.17 2.96 2

35

30

25
Highly Dissatisfied
20 Dissatisfied

15 Neutral
Satisfied
10
Highly Satisfied
5

0
Price Quality Schemes Customers Chilling
Demand Equipment

(Table - 6.15 Reasons not selling coca cola product)


INTERPRETATION :
(5 - Strongly Agree/Highly satisfied) (4 - Agree/ Satisfied) (3 - Neutral) (2 - Disagree/
Dissatisfied) (1 - Strongly Disagree/ Highly Dissatisfied)
Most of the Retail Outlets not selling Coca-Cola Product because they were not satisfied for Visi
Cooler & Company Schemes. If company will provide fridge as soon as Possible and better
Schemes like as Gift Card ( Amazon Shopping Card), Then Retail Outlets will be satisfied about
it. Second major reason of not selling Coca-Cola products is price because retail outlets said
there is no difference in price of coca cola and other brands so Company should reduce the price
of products of coca cola then most of the Outlets will deal with Coca-Cola Company.

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HYPOTHESIS TESTING

HYPOTHESIS – 1

H0: There is no significant relation between types of outlets & willingness to sell soft drink.
H1: There is significant relation between types of outlets & willingness to sell soft drink.

Outlet* willingness to sell soft drink Cross tabulation


What type of retailer are you? Total

E&D Grocery Convenience

If there are no drinks in the outlet, Yes 6 24 59 89


are you willing to sell soft drinks? No 4 44 13 61
Total 10 68 72 150

Chi-Square Tests

Value df Asymp. Sig. (2-sided)


a
Pearson Chi-Square 31.544 2 .000
Likelihood Ratio 32.927 2 .000
Linear-by-Linear Association 19.197 1 .000
N of Valid Cases 150

a.1 cells (16.7%) have expected count less than 5. The minimum expected count is 4.07.

(Table-6.16)

INTERPRETATION
The P value of the test comes to 0.00 which is lower than 0.05, so we fail to accept null
hypothesis that - There is no significant relation between types of outlets & willingness to sell
soft drink.

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HYPOTHESIS – 2
H0: There is no relation between the types of outlets and preference of coke products.
H1: There is a relation between the types of outlets and preference of coke products.

Outlets* preference of coke products Cross tabulation


What type of retailer are you? Total

E&D Grocery Convenience

COCA COLA 0 0 2 2
Thums up 2 3 9 14
Sprite 1 1 2 4
If the preference is Coke
Limca 0 1 1 2
Co., then which product
Fanta 0 0 0 0
you prefer more?
Maaza 0 5 4 9
Pulpy Orange 0 0 0 0
Nimbu fresh 0 0 0 0
Total 3 10 18 31

Chi-Square Tests

Value df Asymp. Sig. (2-


sided)
a
Pearson Chi-Square 6.518 8 .589
Likelihood Ratio 7.775 8 .456

Linear-by-Linear Association .238 1 .625

N of Valid Cases 31

a. 13 cells (86.7%) have expected count less than 5. The minimum expected count is .19.

(Table-6.17)

INTERPRETATION
The value of the test statistics is 6.518 with corresponding to the p value of the test statistics is
p=0.589 which is Higher than 0.05, so we fail to accept Alternative hypothesis that - There is a
relation between the types of outlets and preference of coke products.

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HYPOTHESIS – 3
H0: There is no relation between the types of retailers and preference in packs of products.
H1: There is a relation between the types of retailers and preference in packs of products.

Packs prefer*What type of retailer are you? Cross tabulation

What type of retailer are you? Total

E&D Grocery Convenience

PET 2 9 13 24
Which packs do you prefer?
All of these 1 1 5 7
Total 3 10 18 31

Chi-Square Tests

Value df Asymp. Sig. (2-


sided)
a
Pearson Chi-Square 1.382 2 .501
Likelihood Ratio 1.527 2 .466
Linear-by-Linear Association .151 1 .697
N of Valid Cases 31

a. 4 cells (66.7%) have expected count less than 5. The minimum expected count is .68.

(Table-6.18)

INTERPRETATION
 The value of the test statistics is 1.382 with corresponding to the p value of the test
statistics is p=0.501 which is Higher than 0.05, so null hypothesis will accept and
alternative hypothesis will rejected. Hence, there is no relation between the types of
retailers and preference in packs of products.

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TEST 4 – One Sample T- test
H0: There is no relation between reason for not sell Coca-Cola products and satisfaction level of
retail outlets.
H1: There is relation between reason for not sell Coca-Cola products and satisfaction level of
retail outlets.
One-Sample Statistics

N Mean Std. Deviation Std. Error Mean


Satisfaction level of not selling coca
58 2.72 .790 .104
cola products.(Price)
Satisfaction level of not selling coca
58 3.84 .745 .098
cola products.(Quality)
Satisfaction level of not selling coca
58 2.17 .798 .105
cola products.(Schemes)
Satisfaction level of not selling coca
58 2.97 .917 .120
cola products.(Customers Demand)
Satisfaction level of not selling coca
58 2.00 .845 .112
cola products.(Chilling Equipment)
(Table-6.19)

INTERPRETATION:

(5 - Strongly Agree/Highly satisfied) (4 - Agree/ Satisfied) (3 - Neutral) (2 - Disagree/


Dissatisfied) (1 - Strongly Disagree/ Highly Dissatisfied)
 In the above table, mean value = 3 i.e. taken as Neutral it is analyzed that Price have
mean value of 2.72 which show that price of coca cola products are neutral.
 The mean values of Quality are 3.84 which show that it fall under satisfied or agree by
retail outlets.
 Satisfaction level of schemes have mean value of 2.17 which show that Coca cola do not
provide better schemes so it fall under dissatisfied or disagrees by retail outlets.
 Customers‟ demand of mean value is 2.97 which show that it is satisfaction level of
Customers demand is natural.
 The least mean value is 2 which show that Chilling Equipment is dissatisfied or disagrees
by retail outlets.

And so from the data we will accept the Null hypothesis and reject the Alternative hypothesis.
Thus, it concludes that there is no relation between reason for not sell Coca-Cola products and
satisfaction level of retail outlets.

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CHAPTER 7
FINDINGS

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FINDINGS/RESULTS OF ONE VARIABLE ANALYSIS

 It is felt that the reasons for not doing business with Coke were segmented into 5 major
factors. The major reason was that retailers were not satisfied with company policies for
chilling equipment.
 After the research I found that maximum retailers want to do business with Coke because
of Brand value, High customer loyalty and Best offer.
 In research it was found that shopkeepers have mostly prefer Thums up in the carbonated
soft drink and Maaza in the non-carbonated Soft drink i.e. Juice.
 I found that owner are more concern about schemes like as they have mostly prefer free
water bottles on cases, under crown schemes etc.
 It has been found that the shopkeepers have mostly responded to the option of switching
to the brand (Pepsi) when it has been inquired that what will they do in order to continue
trading at the time when their preferred brand is not been delivered properly.
 The main Problem in opening a new outlet was unavailability of chilling capacity. The
company does provide chilling capacity but it takes a long time for the company to
process the order as it itself buys the fridge from outside. Also, not all the retailers are
Qualified as per company's criteria to receive the Fridge.
 I found that some retailer was not satisfied with our service, like they don‟t receive
proper information about schemes and most of the time they face stock out issue for that
reasons they stopped to sell our product and started to sell Pepsi product.
 I found that mostly Retail outlets Sell another brand because main reason Profit margin
and Customer demand is higher than of Coca-Cola Brand.

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CHAPTER 8
RECOMMENDATIONS

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RECOMMENDATIONS

While working with such reputed and valuable company which is having the best products
and supply chain management system through which they supply their products all over the
world, I would like to give some recommendations which I noticed while working on the
project - Horizontal Expansion that might be helpful to the company to get benefits.
 Company should focus more and more on Grocery Outlet because most of the
Grocery outlets don‟t have promotional tools of the company.
 The company should provide fridge as soon as Possible and better Schemes like as
Gift Card (Amazon Shopping Card), then Retail outlets start business with Coca-
Cola.
 Cash discount should be given (Extra 1% discount on 10 cases and 3% on 20 cases)
& it should be competitive and luring.
 Company can increase the sales what it considering more on retailers, their
suggestions or complaints about service or product so that necessary action can be
taken.
 Company must make aggressive & new strategies to fight with major competitors and
local cold drink brands.
 Outlets are not interested in QPS because they didn‟t get previous QPS coupons, if
company solves this issue by providing pending QPS Coupons as soon as possible so
that company gain outlets trust and they will take interest in upcoming QPS and they
will sell more Coca-Cola products.
 The company should work out in their complaints regarding to the visi cooler.
 Company should diverse its business in related part of FMCG sector like - chocolates,
biscuits & ice-cream as company has well established system in every.

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CHAPTER 9
CONCLUSTION

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CONCLUSTION

Though there were certain limitations in the study that was conducted, the sample allowed for
some conclusions to be drawn on the basis of analysis that was done on the data collected.

The data has clearly indicated that Coca-Cola products are more popular than the products of
other Competitors mainly because of its taste, brand name, and availability, thus it should focus
on good taste so that it can capture the major part of the market.

As far as journey with the company, I grasped lots of knowledge within two months Because
many of the company officials has assisted and given me the valuable notes and experience of
their life.
The primary objective of the my research is to analyze the horizontal expansion strategy of Coke
and at the end of the research I found that there is requirement of changing the strategy for
acquiring new customer for Coke but company should take care of its existing customer because
they are the main instrument of promotion for any company so old customer should be fully
satisfied with the company.

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CHAPTER 10
BIBLIOGRAPHY

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BIBLIOGRAPHY

Ali, S. S. (2009). Flexible approach to retailer satisfaction index: An Indian Case Study of health
drink sector. International Journal of Indian Culture and Business Management.

Alvarado, U. Y., & Kotzab, H. (2001). Supply Chain Management: The Integration of Logistics in
Marketing.

C, S. I. (22nd Sep. 2014). Horizontal expansion: a case on Retailer satisfication. Institute of


Management Studies, Davanagere University, Business Administration, Vidyavardhaka
College of Engineering Mysore. Mysore: Contemporary Issues, Challenges and Advances
in Emerging Markets .

D.B.Bagul. (2014). SCOPE FOR HORIZONTAL EXPANSION FOR COCACOLA. RJSPM, Institute of
Computer and Management Research. alandi, Pune: Scholarly Research Journal for
Humanity Science.

Firto-lay. (2007). Understand the behavior of retailers not selling coca cola. (J. Sicher, Ed.) Daily
Morning News, 53.

FOSTER, R. J. (29 FEB 2012). COCA-GLOBALIZATION. The Wiley-Blackwell Encyclopedia of


Globalization.

Hannaford, S. (2007). Market Domination!:The Impact of Industry Consolidation on


Competition Innovation and consumer Choice. westport, London, London: Praeger
Publiher.

Hill, R. (2009). Marketing. Retrieved from www.ccep.com: https://www.ccep.com/

KHAN, S. (2015). PRICING STRATEGY OF MINUTEMAID. BOHAT ALA, PAKISTAN.

Kumar, O. (27 Feb.2013). The Opportunities for Horizontal Expansion of Coca-Cola Company.
Bangalore, India.

Lee, H. (2016, January 18). Global Soft Drinks Corporate Strategy. Making Still Drinks Dynamic,
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Nair, S. (2008). Retail Management. 1st edition. Delhi: Himalaya Publishing House.

Poddar, S. (June 2017). Horizontal Expansion Strategy of coke. Ahmedabad, India.

Puravankara, D. (2007). Strategic analysis of the coca cola company. Gujrat agriculture
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Rodriguse. (2009). Analtysis on manufactuing & distribution of Coca cola .

Staff, J. (2017, May 05). Coca-Cola India’s Breakthrough Technological Innovations for Chilling
and Dispensing Equipment. (d. o. India, Producer, & Coca-Cola India Pvt. Ltd.) Retrieved
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WEBSITE
 www.marketing91.com
 www.coca-colaindia.com
 www.ccep.com

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ANNEXURES

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QUESTIONNAIRE

I am student of N.R. Institute of Business Management, GLS University, and


working as a summer intern at "Hindustan Coca Cola Beverages Pvt. Ltd." I am
preparing a project report on “A study on Horizontal Expansion opportunities for
COCA-COLA in Ahmedabad’’. I will be very thankful if you give us your valuable 5
minutes to fill out questionnaire which will help me in my research work. Please
give the answer all the questions as per your thinking and experiences. All the
information will be used only for academic purpose.

Section „A‟
1. What type of retailer are you?
E&D Grocery Convenience Other

2. If there are no drinks in the outlet, are you willing to sell soft drinks?
Yes, then continue No, then go to section „B‟

3. Which brand of soft drink will you prefer to sell?


Coca cola, then continue Another brand, go to section „C‟.

4. Why will you give the preference to coca cola?


Brand name Customer loyalty Best offers Price Quality
Above all
5. If the preference is Coke Co., then which product you prefer more?
Coca cola Thums up Sprite Limca Fanta
Mazza Pulpy orang Nimbu fresh

6. Which packs do you prefer?


RGB PET Tetra packs Cans All of these

7. Average number of customers visiting store every day to buy COCA-COLA products?
<10 10-20 20-30 More than 30

8. According to you which of the following offers will benefit your business?
Free bottles Less MRP on purchase Gift vouchers SMS offers

9. Do you think that the business of these soft drinks is seasonal?


Yes No Neutral

10. Which Chilling Equipment you use?

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Pepsi Fridge Coca-Cola Fridge Own Fridge Both Pepsi and Coca-Cola Fridge

11. What do you do if a Brand which you prefer is not delivered to you on time?
Go for other Brand Call to Distributor Call to Company‟s Sales Person
Stop Selling that Brand

12. How often do you Order?


Monthly Weekly Daily

Section „B‟
13. Reasons not selling soft drink product? (Multiple answers)
Profit margin Availability issue Schemes
Chilling equipment Others…

Section „C‟
14. Reason for another brand? (Multiple answers)
Profit margin Quality Schemes Availability of stock
Customers demand Other….
15. Reasons not selling coca cola product?

Highly Satisfied Neutral Dissatisfied Highly


satisfied dissatisfied
Price
Quality
Schemes
Customer‟s
demand
Chilling
equipment

16. Name of the Owner :_________________________________________

17. Name of the outlet :_________________________________________

18. Mobile No. :____________________

19. Area :____________________________________________________

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