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SR. NO CHAPTER NAME 1 2 INTRODUCTION OF MARKETING COMPANY PROFILE -History of company RESEARCH & METHODOLOGY -Objectives -Collection of Data -Type of Research -Hypothesis -Limitations DATA ANALYSIS & INTERPRETATION CONCLUSIONS & SUGGESTIONS RECOMMENDATIONS ANNEXURE Bibliography Questionnaire
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CHAPTER: - 1 INTRODUCTION
Introduction of Marketing
Introduction :
The Introduction of marketing comes in India very late. Though we are known lot about the theoretical part of it. The practical importance was left by the Indian industries when they came to know about the competition with the multinational companies functioning in India and also exporting our products in abroad. The development of marketing is evolutionary. Marketing is what a marketer does. But this meaning lacks clarity in understanding the subject. The evolution of marketing is as old as the Himalayas. It is one of the oldest professions of the world. Marketing is indeed an ancient art: it has been practiced in one from or the other since the days of Adam and Eve. The traditional objective of marketing had been to make the goods available at places where they are needed. This idea was later on changed by shifting the emphasis from exchange to satisfaction of human wants.
Meaning:
Marketing occupies on important position in any business unit traditional view of marketing is the customer accepts what ever the seller presents to them. The thing without considering the needs wants of the customer. But now this concept is changed and the full attention is given on the customers wants and satisfaction.
Definition: Marketing is human activity directed at satisfying needs and wants through exchange process. - Philip Kotler. Marketing is the total system of business is activities designed to plan, price, promote and distribute want satisfying goods and services to present and potential customer. - W. J. Stanton.
Evaluation of Marketing : 1. Barter System: The goods are exchanged against goods, without any
other medium of exchange, like money. 2. Production Orientation: This was a stage where producers, instead
of being concerned with the consumer preferences, concentrated on the mass production of goods for the purpose of profit. They cared very little about the customers. 3. Sales Orientation: The stage witnessed major changes in all the
spheres of economic life. The selling activity becomes the dominant factor, without any efforts for the satisfaction of the consumer needs. 4. Marketing Orientation: Customers importance was realized but only
as a means of disposing of goods produced. Competition became more stiff. Aggressive advertising, personal selling, large scale sales promotion etc. are used as tools to boost sales. 5. Consumer Orientation: Under this stage only such products are
brought forward to the market which is capable of satisfying the tastes, preferences and expectations of consumers - satisfaction. 6. Management Orientation: The Marketing function assumes a
managerial role to co-ordinate all interacting business activities with the objective of planning, promotion and distributing want-satisfying products and services to the present and potential customers.
History of Company
Coca-cola was inventing in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. The name COCA-COLA was suggested by Dr. Pembertons bookkeeper, Frank Robinson. He penned the name CocaCola in the flowing today coca-cola was first sold at soda foundation in Jacob pharmacy in Atlanta by will enable during there first year sale of coca-cola average nine drinks day adding up to total sales for that year of $50. Since the years expensive were just over &70 Dr. Pemberton took a loss. Today products of the coca cola company are consumed at the rate of more than one billion per day. Coca cola has got 5 ranks as a leader company. The head office of company is at Atlanta USA.
About India
In India Coca cola entered in 1950 withdrew to Janta regime in 1977 and reentered in 1993 October. With launch at Agra. The US soft drink giant coca cola reentered India in the 1990 after abandoning its business in the 1970 in the wake of foreign exchange regulation act of 1973. The act mean to indianite foreign companies made it mandatory for foreign companies to dilute their shareholder to
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40% instead of diluting its shareholding to the required limit prescribed by the act coca-cola opted to discontinue its operation in India. In the new liberalized and deregulated environment of the nineties, coca made it reentry in to the India through its 100% owned Subsidiary, Hindustan coca-cola holding. However, cokes reentry was base upon several commitment and stipulations, which major commitment was that Hindustan coca- cola holding would divest 49% of it shareholding in favor of resident shareholders by June 2002. In India it has 37 companies owned bottling operation and the head office of Coca cola Hindustan India is situated in New Delhi.
Recently in august 2000 Pepsi claimed to have increased its market share for first 5 month of calendar year 2000, to 49% from earlier levels of 47.3% while coke claim to have increased its share in the market to 57% in the same period from 55% in the corresponding period last year. Coke figures are based on ORGs data while that of Pepsi are based on IMRD data.
C.E.O. coca cola India on 10 April 1996. Turnover of the plant is 15 corers. No. of people work in the plant is 150 including the labors.
Retailer categorization is a process to classify the retailer on the basis of some major parameters it also studies those factors, which are related to effective retailer ships, retailer satisfaction like product demand, product availability, services, customers preference, and customer perception. This report basically based on the data collected from different kind of retailer who keeps the soft drink including restaurant, canteen, bar, general stores, and grocery shop etc. of Nagpur & rural area. The research was necessary to find out the satisfaction level of exiting retailers. Another important reason was to find out needs of the retailers, existing as well as prospective. It becomes very important for the companies to adapt to change as soon as possible. This research could help the company in understanding the retailers need.
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the line. The company has developed four core business strategies. First, a think local approach, both in the term of manufacturing and distribution, as well as marketing. Second focusing on non-alcoholic commercial beverage opportunity. Third, ensuring cost and process efficiency in all aspect of the business to maximize return on the infrastructure and fourth, nurturing a people driven company. The company also worked on its distribution strategy by increasing the outlet base. The focus will be on increasing rural penetration, profitability, huband spoke and own your assets (OYA) concept coca-cola has adopted local customer specific marketing strategy by promoting the coke brand in Delhi, Thumps up in Mumbai and Andhra Pradesh, and Fanta in Tamil Nadu. The recent focus on its Maaza brand has also seen its growth by almost 30%. It also plans to introduce one or two of its international category product in India next year. Coca-cola India has also launched Kinley drinking water. A 1 liter bottle is proceed Rs. 12. water is being produce at Bidadi near Bangalore. Coca-cola, which ran its international Always Coca-cola line in India from 1993, had to best track. Recently Coca-colas Hindi line thunder mat lab Coca-cola & recently Sabaka Thand ek Coca-cola has been ruling the airwaves, with Amir Khan epitomizing the brand.
Sr. No.
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1. 2. 3. 4. 5. 6. 7. 8.
Administration Production Store and Purchase Sales Maintenance Quality Control Empty Bottle shed Logistic
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THE ORGANISATIONAL CHART OF SUPERIOR DRINKS PVT. LTD. M. D. E. D. Finance Manager Plant Manager Sales Manager
A/c Section
Supervisor
Employee
Employee
Sales Executive
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Board of Directors
Board of Directors
Neville Isdell Muhtar Kent Herbert A. Allen Ronald W. Allen Cathleen P. Black Barry Diller Alexis M. Herman Donald R. Keough Maria Elena Lagomasino Donald F. McHenry Sam Nunn James D. Robinson III Peter V. Ueberroth Jacob Wallenberg James B. Williams Chairman
Company Post
President and Chief Executive Officer President and Chief Executive Officer Advisory Director, Former Chairman of the Board, President, and Chief Executive President Chairman of the Board and Chief Executive Officer Chair and Chief Executive Officer Nonexecutive Chairman of the Board Chief Executive Officer Distinguished Professor in the Practice of Diplomacy and International Affairs Co-Chairman and Chief Executive Officer General partner RRE Ventures President JD Robinson, Inc. Investor and Chairman Contrarian Group, Inc. nonexecutive Co-Chairman Pebble Beach Company Chairman of the Board Former Chairman of the Board and Chief Executive Officer
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Coca-cola
Beverages
Sprite
Maaza
Limca
Kinley Soda
Gold Soda
Coca-Cola: Comes under sweet flavor available in 300ml, 500ml, and 1.5lit & 2lit-quantities. Thums up: Comes under sweet flavor available in 300ml, 330ml, 500ml, 1.5Lit & 2lit-quantities. Fanta : Comes under orange flavor available in 300ml, 500ml, 1.5lit & 2lit- quantities. Sprite :
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Comes under sweet flavor available in 300ml, 500ml, 1.5lit, & 2lit-quantities. Maaza : Comes under mango flavor available in 250ml in quantity. Limca : Comes under lemon flavor available in 300 ml, 500ml, 1.5lit, & 2lit-quantities. Kindly Soda : Comes under soda flavor available in 250ml. Gold Soda: Comes under soda flavor available in 250ml in quantities. Kinley Water: If is the only mineral water brand of company available 1lit quantities.
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DISTRIBUTION NETWORK
MANUFACTURER CONSUMER
DISTRIBUTION
RETAILER
2-Level Channel
Superior Drink Pvt. Ltd. Has 35 distribution and the area covered Vidharbha, part Chhattisgarh and part of M.P. There is on. Involvement of wholesalers in the distribution of products. It is more like an agent network. The companies have divided the country into various region established a franchisee in each region. The franchisees have their own bottling plant and the manage all the day to day operation. However, of late the soft drinks companies have started setting up company owned bottling units have been acquiring some of its franchisees bottles.
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FUNCTION PERFROMED BY DISTRIBUTION CHANNEL They facilitate the sales process by being physically close to customers. They bridge the markets and users efficiently and economically. Break the bulk and cater to the small size requirement of buyers. Assemble and offer suitable assortment of product as required by buyers. Help sub Distribution Transport Handling Accounting Help stocks Financing in the stocks Risk bearing Storage of products Making available warehouse space Provide salesmanship Provide presale and after sale services. Assist in merchandising Assist in sales promotion Aid the introduction of new product in market Aid the mechanism between the firms at the ultimate point of sale
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To inspire moments of optimism through our brands and our actions. To create value and make a difference everywhere we engage. Our Vision Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth. People: Being a great place to work where people are inspired to be the best they can be.
Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.
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Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value.
Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities.
Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities. 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 Quality: What we do, we do well
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RESEARCH METHODOLOGY
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MEANING OF RESEARCH : Research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. It is an academic activity and as such the term should be used in a technical sense. Research is, thus an original contribution to the existing stock of knowledge making for its advancement. It is a per suit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective & systematic method of finding solution to a problem is research.
DEFINITION
1. According to Advanced Learners Dictionary, A research is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. 2. According to Clifford woody, Research comprises defining and redefining problems, formulating hypothesis or suggested solution; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.
OBJECTIVES
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The topic of the study is The analytical study of soft drink market for Coca-Cola India Ltd. So, the important objective is to known how effective is the distribution channel of the company.
1.
Nagpur market.
3.
To find out the market competition. To find out the factors responsible to enhance the distribution of product.
4.
TYPES OF RESEARCH
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1. Descriptive vs. Analytical : Descriptive research includes surveys and fact-finding enquiries of different kinds. The main feature of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. For example :Survey method of all kinds, including comparative and correlation method.
2. Applied vs. Fundamental :
Research can either be applied (or action) research or fundamental (to basic or pure) research. Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization. For example :- Research studies, concerning human behavior carried on with a view to make generalizations about human behavior. 3. Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitative phenomenon.
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4. Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts. On the other hand, empirical research relies on experience or observation alone. It is data-based research. 5. Some other Types of Research:1. One-time research or long term research 2. Field-setting research or laboratory research 3. Clinical or Diagnostic research 4. Historical research 5. Conclusion-oriented research.
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One expect scientific research to satisfy the following criteria1. The purpose of the research should be clearly defined and common concepts be used. 2. The research procedure used should be described in sufficient detail to permit another researcher to repeat the research for further advancement. 3. The procedural design of the research should be carefully planned to yield results that are as objective as possible. 4. The researcher should report with complete frankness, flaws in procedural design and estimate their effects upon the findings. 5. 6. The analysis of the data should be sufficiently adequate. Conclusions should be confined to those justified by the data of research. 7. Greater confidence in research is warranted if the researcher is experienced, has a good reputation in research and is a person of integrity. 8. Organizations actively work to build strong favorable image in the mind of their publics. In other words, we can state the qualities of a good researcher as undera. b. c. d. Good Research is systematic. Good Research is logical. Good Research is empirical. Good Research is replicable.
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HYPOTHESIS
1) The Coca-Cola is an oldest existing company in India, Coca-Cola occupies highest market share in Nagpur. 2) Among all the categories of occupation, student, old person, businessmen Coca-Cola has very good lead over its rivals.
LIMITATIONS
1)Geographical constraint:As this study is limited and will be conducted for the Nagpur region, the conclusion will be based for the Nagpur region only. 2)Time constraint;There is limited period available for studying and finalizing the project.
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COLLECTION OF DATA
In the project Analytical Study Of Retailers Categorization For Superior Drinks Pvt. Ltd. (Coca-Cola), we have collected the vast information from different sources. There are mainly two Sources of collection of data. The First Source of data collection is known as Primary Data Collection And another source is known as Secondary Data Collection. By using both the sources we have collected all round covered data, where the user can get the all type of information about the project. Sources of Data Collection:1) Primary Data Collection 2) Secondary Data Collection This is the mainly two types of data collection which are describe systematically as under. 1) Primary Data Collection:By using this source I have collected unique type of information. Hear I got main and very unique information to start this project. To start this project I approach a very good personality who gave me complete detail information about his company which is known as Superior Drinks Pvt. Ltd..
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2) Secondary Data Collection:To get more information on different aspects of the project, I have surf on different web sites and also preferred some books. The main preferred Books are:Marketing Management of Mr. Philip Kotler Research for marketing Decision of Donald S. Tull The main preferred Web sites are:1) www.Google.com 2) www.coca-colacompany-coca.com 3) www.indiainfoline.com
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SELECTION OF PROJECT Interest in the field of marketing and the opportunity to work with M/s. Superior Drink Pvt. Ltd. (Coca-cola), distributors of the multinational provoked me select this project.
1) NATURE OF PROJECT The nature of the project is research based having an exploratory approach, as its goal is to shed light on the real nature of the problem and to the safest possible solution or new ideas. Here the research is exploratory, as the company had undertaken survey of data collection to know the problem faced by the companys retailers. The data collected was analyzed and the facts found have been reported.
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2) OBJECTIVE The companys mission must be turned into specific for each level of management. A company always states a large number of objectives. The objectives should therefore, be stated in hierarchical fashion and should be quantities, realistic and consistent. The objective of this project is: To find out the level of satisfaction of retailer. To find out the percentage of monopoly counter. To find out the product availability in the market.
3) SCOPE OF PROJECT Company has a very wide scope in the beverage market as the company has a very long product line cater to need of various section of the market. The company markets its product throughout India. The company has divided the entire market on geographical line into 4 zones (East, North, West and South) and zones into 11 regions.
Geographical Scope: The company has a wide product line to serve the needs of the market. The company has different priced product, which are available in different quantities.
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Area covered in Nagpur : Buldi, Ramdaspeth, Gokulpeth, Dharampeth, Dhantoli, Ram Nagar, Ravi Nagar, Bharat Nagar, Shankar Nagar. Rural area covered : Kamptee, Koradi, Kalmeshwar. Organizational Scope : Organizations actively work to build strong favorable image in the mind of their publics. The organization can have many missions in front of them too carry out like increasing sales, product innovation, and brand awareness. Here the organizational scope lies in strengthening the distribution and retailer network as the distributor and the retailers are the pillars on which the success of a company depends. Function Scope: The areas taken for study to cover the distribution network and the retailer observation from the fictional group. These retailers deal in Cocacola and other soft drinks. Project carried out in three stages. 1. In plant training
2. Visit along with product vehicles to observe interaction between
90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
78.40%
73.33%
Satisfied
17.04% 4.54% 18.33% 8.33%
Nagpur
Rural
Above graph shows the retailer satisfaction with service of Urban and Rural areas in which 78.40% of retailers were satisfaction with services offered. Whereas in Rural area 73.33% expressed satisfaction with the services. Whereas 4.54% and 8.33% of retailers in urban & Rural area respectively said that they had average opinion about services. In both Urban & Rural areas 17.04% and 18.30% respectively expressed dissatisfaction with the services only because they didnt get services due to irregularity of delivery vehicles. Overall it can be seen that retailer satisfaction level with delivery services is similar for both Urban & Rural Areas.
Mazza 18%
P epsi 21%
Thumps-Up 22%
Coca-Cola 39%
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Choice Yes No
% 51% 49%
No 49%
Yes 51%
Yes No
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Others 23%
Youth 40%
Familiers 17%
Children 20%
% 32% 17%
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Price 17%
SUMMARY OF FINDING
1. In Nagpur city delivery of product is not regular especially in those areas which are in interior or which are away from the main road. 2. Mostly the retailer does not have proper information about the promotion schemes. 3. Retailers expect at least one visit of sales executive in a month. 4. Retailer wants replacement of half filled bottles, which are rejected by the customer and are loss for him.
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5. Retailers expect quick response of their complaints. 6. Some retailers stopped keeping coke product because of replacement and service problem. 7. In the month of June there was a shortage of 2 lit., 1 lit., and 500ml which adversely affected the retailers turnover.
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Retailers Perception
Retailers stated that the consumers are loyal to the segment of the soft drink i.e. Coca, Orange or Orange or Lemon. But as far the loyalty for the brands in each segment is concerned, it is not very significant. 43% of the retailers surveyed total that in soft drinks advertising is the key component in driving sales. While 32% stated promotional schemes and 20% brand loyalty as the reason. As consumers are not very brand loyal where the purpose of soft drinks is concerned, the retailers push becomes a critical issue. They usually sell the product in which they get the maximum margins. While destructor get margin of Rs. 8-9 per create (1 crater=24 Bottles) at 3-4% of MRP. Retailers are given a margin of 10-12% of MRP. The retailers are not happy with this, as the cost of refrigeration is very high for soft drinks: to over come this problem the companies are offering visit-coolers to their main retailers.
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Availability in chilled form affects the purchases decision. This is made both companies to push its sales and to increase its retail distribution by offering visit cooler to retailers. While there is no aversion to consumption of soft drink by any age group, the main consumers of this market are people in the age group of 30 years and bellows. Product differentiation is very low, as all the products taste the same. But brand loyalty is high in the case of kids and the people in age of 20-30 years. Consumers are sensitive to the outlay where the purchase of beverages is concerned. Hence the market is price sensitive. Due to the high cost of soft drinks, a lit of times consumers prefer beverage like tea, Coffee or other drinks like sherbet and squashes. While 75% of the PET bottle consumption is in Urban areas the glass bottle sales are higher in Rural areas. According to NCAER survey 91% of the total consumption of soft drinks in the country is done by lower, lower middle and upper middle class people.
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2. In some outlet the refrigerator is not working because of mechanical problem and so the sales are affected.
3. Some rural area bar and restaurant are monopoly country of competitor because of regular schemes and distribution of gift.
4. Some retailer stopped keeping the coke product because of poor service.
5. Full coverage of the target market has not been achieved. 6. Some distributor does not provide the credit facility. 7. Some retailers are not satisfied with response their complaints of the product. 8. There is a communication gap in between gap in between the sales executives and retailers. 9. In rural areas most of the retailers dont know the name of the sales executives and sales manager.
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10. In rural area retailer expect at least one visit sales executives in months. 11. In some areas is requirement of advertisement and sales promotion. 12.There are complaints of retailer that they never get the proper information about the promotional schemes so that they cant take benefit to schemes.
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Bottle Filter
Crown Capping
Level of Beverage
A discursion was also carried out with the sales representative of the company where the advantage of franchising was discussed. The information obtained is a reported.
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Advantages and Limitation of Franchising Network Advantages are Reduced investment in manufacturing equipments: If a company sources its product from franchisees, it does not require setting up its own manufacture plant for purpose. The company thus benefits from reduce investments in manufacturing, inventories of raw material and other functions required for the manufacturing of the components. Savings on management time : As the components are out sourced, the company stands to gain by saving on the management time and cost. The role of the company gets restricted to establishing the system and in quality control at the franchise locations. Over period of time the system implemented stabilize and hence the involvement of the company remains on at strategic decision level. Regular supply of Component: With the development of strong relations with the franchisees, the manufacture can be assured of a regular supply of components as per the manufactures specification.
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The labor and union employees involved in the manufacturing are the responsibility of the franchisee. This beneficial as it reduces the management time and involvement in solving their issues.
Limitations are :
Large Volumes : To set up an ancillary base, the company is required to produce large volume as the franchisee may not to be interested in making large investment in the manufacturing facilities if the volumes required to be produced are low. Especially the existing franchisees will not take the risk of typing up with new players. Financial support : In India, most vendor are small in size and do not have capital to invest in theses equipments, which requires the manufacture to give them the financial support, capacity. Quantity : In some case, due to cost considerations, the manufactures are forced to compromise on quality. this problem becomes intense when the manufacture has an existing franchisee base and wanted to increase the
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CONCLUSIONS
Conclusions :
1) After going a detail study of the organization following conclusion were noticed. 2) They were a wide experience. The products which company produce has a long product line & suitable for all class of people. The quality of the product is excellent with more covering capacity. 3) The delivery network is ineffective; also company spends less of its sales revenue on sales promotion. 4) High market share covered by company & has a very good reputation.
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Suggestions
1. Costumers from rural areas are looking for low priced product hence rural market can be captured by designing low priced products. 2. Brand awareness can be increase & rural market can be captured with the help of sales promotion activities. 3. In rural areas company can expand its market by appointing new distributors because few exiting of distributors are not taking full efforts. 4. Company should use small delivery vehicle to reach each & every outlet. 5. Frequency of salesman to the retailers should be increase seasonal variation in demand.
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CHAPTER: - 6 RECOMMENDATION
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RECOMMENDATION
After going though research it comes to know that company need improvement in certain areas :
1. It was found during the research that there was low brand
awareness of some brand amongst the retailers especially in rural areas. Therefore it is advisable for the company to create more brand awareness among the retailers. 2. Means of transportation should be increase in rural areas as well as in Urban area to deliver on time. 3. Company should keep watch on the service offered by it and for the implementation regular follow up sales in charge in necessary. 4. It is possible to increase market share if efforts are made to know the weakness, strength, opportunities and threats. accordingly strategies can be planned. 5. A strong distribution network should be development for the rural markets. 6. In rural areas providing schemes can increase numbers of monopoly counters. 7. Company should establish the permanent communication channel with the retailers. Thus
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8. Sales executive should give visit to new outlets too for prospecting, because some retailers want to start keeping soft drink and want know the related information. 9. Company should establish the ferment communication channel with the retailers. 10. In rural area competitor is taking the benefit by providing credit facility so company.
11. It is found that problem of half-filled bottles arises due to improper handling of the crate to company should conduct a training program for the sales personal and for the distributors.
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ANNEXURE
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BIBLIOGRAPHY
Sr. No. 1. 2. 3. Name of the Book Marketing Management Research for marketing Decision Marketing Research Authors Philip Kotler Paul E. Green Donald S. Tull Gerald Albaum Haper W. Boyd Ralf Westfall Stanley F. Stasch
2)
3)
4)
QUESTIONNAIRE
Questionnaire for consumers: Name of person :
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Address
Pepsi Thumps Up
[ ] [ ]
Coca-cola Mazza
[ ] [ ]
4.
Youth [
Children ] Others
[ [
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] ]
Familiars [
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