Marketing Mix, Sales Promotion & Soft Drink Industry History

INTRODUCTION
ABOUT THE TOPIC
Marketing is typically seen as the task of “creating, promoting &
delivering” goods & services to consumers and business. The marketing mix is the
set of marketing tools that the firm uses to purpose marketing objectives in target
markets. The sales comparison and sales promotion
Marketing is indeed an ancient art it has been practiced in on from or the
other since the day of Adam and Eve, its emergence as a management discipline
however is of relatively recent origin. And with in this short period, it has gained so
much importance and stature that today most management thinkers and parishioners
throughout the world view it as the most important of all management functions in
any business.
“Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational goals”.
-American marketing association
“ --- an organizational function and a set of process for creating
communicating, and delivering value to customers and for managing customer
relationships in way that benefit the organization and its stake holders”.
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Human activity directed at satisfying needs and wants through exchange
process.
--- Philip Kotler
“… The on going process or moving people closer to marketing a decision to
purchase, use fallow, refer, upload, down load, obey, reject, confirm, become
complacent to some one else’s products services or values. Simply, if it doesn’t
facilitate a “sale” then it’s not marketing.
“The thing process of anticipating, identifying and satisfying customer
requirements profitably” chartered Institute of marketing.
-----Chartered Institute of Marketing.
The sales comparison is one of the three major groupings of valuation
methods, called the three approaches to value, commonly used in real estate
appraisal. This approach compares a subject property's characteristics with those of
comparable properties which have recently sold in similar transactions. The process
uses one of several techniques to adjust the prices of the comparable transactions
according to the presence, absence, or degree of characteristics which influence
value. As such, all sales comparison approach methods are variations on hedonic-
type measurements, which determine the value of something as the sum of the value
of the various components which contribute utility.
Sales displays are the act of putting things for view or on view. In sales
management, sales display means “arranging systematically saleable goods so as to
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attract the attention of the customer”. Advertising helps in awareness, reminding and
informing customers about products and services. The actual product is not
displayed in advertising. Sales displays fulfill that need by appealing to the eye of
the prospects. Through a sales display, the manufacturer shows the goods or services
to the customer. In the past sales display was the only media for exhibiting products
and inducing prospects to buy the same. Sales displays are actually advertising at the
point of purchase.
Sales promotion is another important component of the marketing
communication mix. It is essentially a direct and immediate inducement. It adds
extra value to the product and hence prompts the dealer/consumer to buy the
product.
The committee on definition of the American marketing association
defines sales promotion as follows.
‘In a specific sense, sales promotion includes those sales activities that
supplement both personal selling and advertising, and coordinate them and make
them effective, such as displays, shows , demonstrations and other non-recurrent
selling efforts not in the ordinary routine.
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Soft Drink Industry is a typical consumer product industry and has come a
long way since its genesis in 1772. Around 1807 in U.S., Bottled soda was being
manufactured on a large scale. Joseph Hawkins has invented a Machine and
obtained the first recorded patent for manufacturing bottles carbonated with in 1809.
Today millions and millions of bottles are consumed every day all over the
world. With the changing trends and habits, social and cultural differences among
different countries are fast disappearing. Soft Drink culture has come up
enormously through out the world. In almost all of the countries, Soft Drinks were
consumed despite the varying factors like age, income, profession, climate etc. This
has lead to the enormous increase in the Soft Drink Market.
They had being number of significant and far reaching changes in the globe.
The disintegration of the USSR has been the most crucial one for the business of the
world. As a result, there has been rethinking on the part of several governments to
open their economy for international business. Accordingly, several of them have
been pursuing market oriented economic policies.
Soft Drink Industry was considered as one of the typical consumer products
industry. In India soft drinks manufacturing unit was first started by M/s. Parle
(Exports) Pvt. Ltd., Mumbai in the year 1949.
Later Coca-Cola export corporation CCEC started its unit in Delhi in the
year 1950. It captured the Indian Market and became the market leader of soft drink
industry with in a short period.
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In the early days, the concentrate was imported from an overseas plant of
CCEC. In 1958, it’s own plant was setup at Delhi for manufacture of concentrate.
It has 22 plants operated in 13 stages through 2, 00,000 retail outlets.
In 1971 sales touched Rs.637.78 lachs yielding profits of Rs.51.37 lachs
before taxes. By 1976-77 margin before taxation was 55% - 60%, which is
35% - 40% more than that consumer goods gradually fetch. It enjoyed the
monopoly powers as the market leader in the industry in the year 1975 government
stipulated that it should dilute its equity of 40% to the Indian brands and transfer its
technology to India.
The CCEC agreed to former condition and did not accept the later one as it
wanted to keep allusion and quality control office in India to control its COKE
concentration. In 1977 CCEC left the country. The gap created by the exit of
CCEC laid a favorable ground for the indigenous products to capture the market.
After Coca-Cola bid a sad farewell in 1977, the Indian market was open for
various new cool drinks and several companies come forward pursuing different
brands in the market. Parle Exports Pvt. Ltd., introduced there cola “Thums Up”
with a mighty bank saying “Happy drinks are here again” pure drinks of Delhi also
without loosing much time introduced Campa Cola along with Campa Orange and
Campa Lemon.
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Modern bakeries a Government of India enterprise too entered the market
with Double Seven and Moan Marketing with Marry and Pick Up. With this in the
Indian high vantage advertising was on. The competition in the soft the peak drinks
reached to stage. With Pepsi foods entering the Indian Market.
Pepsi has introduced its Coal “Lehar Pepsi” in 1989 with attractive
advertisements. At present the main competitors are Coca-Cola and Pepsi Foods.
Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri was a subsidiary to Sri
Sarvaraya Sugars Limited, Chelluru. There was another Bottling Unit under the
same company at Sathupalli. Both Vemagiri and Sathupalli units operate under the
same management. The Vemagiri Unit was given the franchise of Parle (Exports)
Pvt. Ltd., in 1968. Its area of Distribution is East and West Godavari Districts in
Andhra Pradesh. In April 1991 the Districts of Chandrapur and Gatcheroli in
Maharashtra and Raipur, Durg, Rajnndogan and Bastar Districts in Madhya Pradesh
have been allotted to the company for distribution of Parle soft drinks. The supply
of soft drinks to these areas is being made from the Sathupalli Unit. Sri Sarvaraya
Sugars Limited, Bottling Unit, Vemagiri, was situated at Vemagiri on National
Highway No.5 which is about 10 Kms. From Rajahmundry. It manufactures aerated
waters like Coca-cola, Thums Up, Sprite, Fanta, Limca, Maaza and Kinley Club
Soda and proposes to expand its activities by introducing Coca-Cola & Fanta to
about 12,000 crates per day.
From 1968 to 1984, the Vemagiri Unit operated with a capacity of 200 BPM.
The actual expansion of the plant was started from 1984. In 1984, a new Bottle
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Washer and New Filler were purchased and a separate Administrative Building was
built in the premises.
In 1991, a New Maaza plant with Hot Process was built which posted over 5
to 6 Lakhs. In 1994, the company proposed to install a new Bottling Line costing
about Rs.10.5 Crores to meet the increased demand on the capacity due to the
introduction of Coca-Cola and other brands. The machinery is totally imported from
Germany. By the end of July, 1995, the production was started.
Earlier, crates were handled manually. Now they are taken in pallet with a
capacity of 32 crates per palet. This is lifted by Fork Lifter which costed Rs.7
Lachs. This system is at present working for unloading the empty bottles from the
vehicles and it is also being tried for loading purpose. If loading is done manually, it
requires ten people to work for one hour to load a truck. But with the above system,
it takes only 30 min. with four people. Thus, the Bottling Unit is trying to
mechanize to the possible extent.
The Vemagiri Bottling Unit is the Franchise that buys concentrate from
HCCBPL and prepares the carbonated drinks and market them in the Area allotted
to it. The bottler is under license of the parent company but it acts as an independent
organization with class links to the parent company HCCBPL.
For taking up the production of Coca-Cola brand, any bottling unit should
introduce paramix Rs.2 Crores and plastic crates and bottles contains Rs.2 Crores on
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the hold for the expansion of plant, for importing the machinery and for other
facilities. Rs.16 Crores are being invested by the B.U. at present HCCBPL sales in
AP are 135 Lachs creates.
point of purchase.
product.
them.
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OBJECTIVES OF THE STUDY
• To know the sales promotion efficiency of dealers or S.S.S. Ltd., Bottling
Unit, Vemagiri and S.S.S. Ltd., B.U.
• To make extensive study on the existing sales promotion
• To show the sales comparison between the branded product separated by the
Sri sarvaraya sugars bottling
• To give and idea about every detail of the product such as quality, price,
supply.
• To acquire the information regarding of the practical of the organization
• To know the various factors affecting the sale of the product.
• To give information regarding after sales service of a product.
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NEED FOR THE STUDY
The modern world emphasizes an purposeful learning experience under
natural condition to meet the cut-throat competition existing in the world .so under
such circumstances a project can be defined as “a purposefully dedicated effort in
social environment to each and nourish in the present world” so summer training
undergone is of immense benefit to us. The training undergone gives lot of practical
exposure and the real working environment.
After a vivid knowledge of management theories and practice it becomes
very essential practical implementation of everything learned. So in order to meat
the challenge, we marched towards common goal. The training enabled us a real
platform of life to implement the knowledge gained. So the knowledge in the nature
practical workers condition of a corporate house.
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SIGNIFICANCE OF THE STUDY
In a competitive market, sales promotion, sales promotion comes handy to a
marketer, to solve of his short-term hurdles. Short term because, the impact of sales
promotion measures is not that durable and lasting like the results obtained through
advertising and personal selling. Sales promotion, by and large, is understood and
practiced as a catalyst, and a supporting facility to advertising and personal selling.
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SCOPE OF THE STUDY
 This study gives information regarding the history of soft drinks and
particularly the market history of Coca-Cola drinks.
 The study gives an analysis on the marketing performance of Coca-Cola soft
drinks.
 The study concentrates on analyzing the satisfaction levels of the customers
in Amalapuram.
 100 respondents were chosen at random for the purpose of the study.
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METHODOLOGY OF THE STUDY
The purpose of Market Research was to know about the sales promotion of
retailers of S.S.S.Ltd., Bottling Unit, Vemagiri.
The data collected and observation made during the interviews were
analysed qualitatively & quantitatively to arrive to a conclusion about the sales
promotion efficiency of retailers of S.S.S. Ltd., B.U. Vemagiri.
I. Sampling Procedure:
(a) Method: Stratified Random Sampling.
(b) Sampling Unit : Retailers
Geographical Variants – Semi – Urban & Rural
Business Variants – Pan Shops – Departmental Stores – Hotels & Others
(c) Sample Size : 100
II. Data Collection:
Methods: Observation & Structured – Interviews with officials & Retailers.
III. Source of Data Collection:
Through primary and secondary sources required data was collected. Data
relating to the organization was collected from the records of the organization with
the interviews with the officials.
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IV. Methods of Data Collection:
Most of the retailers are illiterates. So they are not able to fill up the
questionnaire on their own. Accordation so schedule was prepared & formulated in
a manner so as to make sure that the pre-defined objectives were achieved. The
schedule had prepared after care & thought.
V. Techniques employed for Survey:
The mode of survey, which I have used in collection of the primary data is
“personal interviews”.
In personal interview I asked the respondent in a face to face interaction and
noted down the observations & responses.
The main purpose of choosing interviews as a mode of survey.
 It requires relatively shorter period of time to complete.
 Researchers can procure different types of information.
 There exists a personal interaction between the investigator and the
respondent so the data obtained will be more reliable & valid.
Field Work :
The survey was conducted at
 Amalapuram areas.
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Covering the retailers of Coca-Cola product a schedule of questions used for
the in-depth interviewing of the retailers. The schedule included all the necessary
type of questions, which were more than enough to achieve the research objective.
The field work, which was included in my project work, was around 30-40 days and
it was one of the best experiences, which was helped as per my expectations.
Most of the respondents have given a very good response, but there were
cases when it became difficult to set the response but I tried my level best to
convince them in order to get the unbiased information. But the survey has thought
me that it is difficult work, and no doubt. I have displayed a high degree of
patience, in order to achieve the information from respondents. I tried my level best
to present the collected information by clearly explaining the research objectives to
hesitate the respondents.
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LIMITATIONS OF THE STUDY
 To study of soft drinks industry, this is to be known to be seasonally
fluctuating one, does not taken account seasonal fluctuations.
 Time and expenses are major constraints.
 Unavailability of recent information due lack of awareness of the retailers.
 The study is limited to Amalapuram only.
 The sample which has been taken for the study is too small to study the
market share in amalapuram.
 The duration of the study for two months is constraint to achieve at
conclusion regard the market share of COKE.
 The material provided by the management for this project study is not
sufficient.
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SOFT DRINK INDUSTRY PROFILE
Evolution of Soft Drinks:
Soft Drink Industry is a typical consumer product industry and has come a
long way since its genesis in 1772. Around 1807 in U.S., Bottled soda was being
manufactured on a large scale. Joseph Hawkins has invented a Machine and
obtained the first recorded patent for manufacturing bottles carbonated with in 1809.
Today millions and millions of bottles are consumed every day all over the
world. With the changing trends and habits, social and cultural differences among
different countries are fast disappearing. Soft Drink culture has come up
enormously through out the world. In almost all of the countries, Soft Drinks were
consumed despite the varying factors like age, income, profession, climate etc. This
has lead to the enormous increase in the Soft Drink Market.
They had being number of significant and far reaching changes in the globe.
The disintegration of the USSR has been the most crucial one for the business of the
world. As a result, there has been rethinking on the part of several governments to
open their economy for international business. Accordingly, several of them have
been pursuing market oriented economic policies. All the countries had to enter this
line in time with the global changes.
17
INDUSTRY SCENARIO
Soft Drink Industry was considered as one of the typical consumer products
industry. In India soft drinks manufacturing unit was first started by M/s. Parle
(Exports) Pvt. Ltd., Mumbai in the year 1949.
Later Coca-Cola export corporation CCEC started its unit in Delhi in the
year 1950. It captured the Indian Market and became the market leader of soft drink
industry with in a short period.
In the early days, the concentrate was imported from an overseas plant of
CCEC. In 1958, it’s own plant was setup at Delhi for manufacture of concentrate.
It has 22 plants operated in 13 stages through 2,00,000 retail outlets.
In 1971 sales touched Rs.637.78 lachs yielding profits of Rs.51.37 lachs
before taxes. By 1976-77 margin before taxation was 55% - 60%, which is
35% - 40% more than that consumer goods gradually fetch. It enjoyed the
monopoly powers as the market leader in the industry in the year 1975 government
stipulated that it should dilute its equity of 40% to the Indian brands and transfer its
technology to India.
The CCEC agreed to former condition and did not accept the later one as it
wanted to keep allusion and quality control office in India to control its COKE
18
concentration. In 1977 CCEC left the country. The gap created by the exit of
CCEC laid a favorable ground for the indigenous products to capture the market.
After Coca-Cola bid a sad farewell in 1977, the Indian market was open for
various new cool drinks and several companies come forward pursuing different
brands in the market. Parle Exports Pvt. Ltd., introduced there cola “Thums Up”
with a mighty bank saying “Happy drinks are here again” pure drinks of Delhi also
without loosing much time introduced Campa Cola along with Campa Orange and
Campa Lemon.
Modern bakeries a Government of India enterprise too entered the market
with Double Seven and Moan Marketing with Marry and Pick Up. With this in the
Indian high vantage advertising was on. The competition in the soft the peak drinks
reached to stage. With Pepsi foods entering the Indian Market.
Pepsi has introduced its Coal “Lehar Pepsi” in 1989 with attractive
advertisements. At present the main competitors are Coca-Cola and Pepsi Foods.
Indian Soft Drinks Market:
Market Size:
Soft Drinks include all types of non-alcoholic carbonated flavored or
sweetened beverage. Soft Drinks are mostly placed inbottles and come in a variety
of flavors. Soft Drink manufacturing in India was first introduced by Parle in 1948.
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With the introduction of fruit based soft drinks packed in tetra packs the
bottled soft drinks market has an estimated size of 130 million cases per annum (1
case = 24 bottles) which is worth around Rs.1,400 crores with an annual growth rate
of about more than Rs.1 Crore.
The population of India is over 100 crores and retail outlets are over 3 lakhs
compare to Philippines where the population is only 60 million and retail outlets
more than 4 lakhs.
The per capita consumption of soft drinks in India is very low at 3.5 bottles
per annum. Presently there are approximately 12 crores consumers in India and in
Delhi alone there are 12 lakh consumers. It was estimated that by the end of this
year India’s share to the world market will be around 0.5% to 1%.
Delhi is the largest consumer of soft drinks in India with an annual
consumption of 75 lakh cases. Mumbai stands second with 50 lakh cases. Together
they account for 25% of the national sale.
There is tremendous growth potential in India but the per capita consumption
has not grown as the focus was mainly on the four metros and some important urban
cities. Focus on the rest of the country especially the rural areas has been ignored.
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Simple arithmetic reveals why Coca-Cola and Pepsi are battling it out the
India Market even with the pathetic per capita consumption. This is because Indians
consume 2.7 billion cases or soft drinks every year. USA on the other hand with its
population 200 million consumes only 80 millions every year.
It is assumed in the study that soft drink market can triple and grow at a rate
2001 is 15% or 20% per annum for the rest or the country. In the beverage market,
which is worth over 2,000 Crores, more than 50% of the entire sales take place in
the month of May and June.
SOFT DRINK – SECTOR OVERVIEW:
 Background
 Segmentation
 Consumer habits and practices
 Market Size and Growth
 Major players and Market Share
 Distribution Networks
 Manufacturing Process
 Retailer’s Perception
Background:
Non-alcoholic soft drink beverage market can be divided into fruit drinks
and soft drinks.
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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 soft drinks market till early 1990s was in hands
of domestic players like Campa, Thums Up, Limca etc but with opening up of
economy and coming MNC players Pepsi and Coke are the leaders in carbonated
drinks market in India it is Pepsi which scores over Coke but this difference is fact
decreasing (courtesy huge ad-spending by both players). Pepsi entered Indian
market in 1991 coke re-entered (After they were thrown out in 1977, by the then
central government) in 1993.
Pepsi has been targeting its products towards youth and it has struck right
chord with the market and the sales have been doing well by sticking to this youth
bandwagon. Coke on the other hand struggled initially in establishing it self in the
market. In a span of 7 years of its operations in the country it changed its CEO four
times but finally they seem to have started understanding the pulse of India
consumers.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for
boom consumption. Fountains also dispense them in disposable container.
Segmentation:
The soft drink market can be segmented on the basis of place of consumption
or on the basis of type of products.
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The variable “place of consumption” divides the market into two parts:
 On – premises – 80% of the consumption of soft drinks is on premise ie.,
restaurants, railway stations, cinemas etc.,
 At-home-the rest 20% of the market comprises of the soft drink purchased
for consumption at home.
The market can also be segmented on the basis of types of products into cola
products and non-cola products.
Cola products account for nearly 61 – 62% of the total soft drinks market.
The brands that fall in this category are
 Pepsi
 Coca-Cola
 Thums Up
 Diet Coke
 Diet Pepsi
Non-Cola segment which constitutes 36% can be divided into 4 categories
based on the types of flavours available namely:
 Orange
 Cloudy Lime
 Clear Lime
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 Mango
M/s PARLE (EXPORTS) PRIVATE LIMITED
M/s Parle (Exports) Pvt. Ltd., was a 100% Indian private owned company
belonging to the Shaun brothers. It has its head quarter at Vice Parle in Bombay.
Basing on that name of site the company got its name as Parle. It started its
production of soft drinks in the year 1948.
In the year 1962, the Parle Group was spilt into two divisions.
 Biscuits Division
 Soft Drinks Division
Again in 1966-67, bottling division was spilt into later groups.
 Parley (Exports) Pvt. Ltd., which supplies the concentrate and provides
promotional activities to all its 50 franchises and
 Parle Beverages which looks after its own bottling plants located in Mumbai
and Delhi.
The company is selling over 40 million crates earning annually Rs.150
Crores. In Andhra Pradesh, Parle is having 9 franchise units located at Hyderabad,
Secunderabad, Khammam, Kurnool, Nellore, Guntur, Vijayawada, Rajahmundry
and Visakhapatnam.
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In Vemagiri the franchise unit is the S.S.C. & B.U. Industries Limited. It is
manufacturing and marketing the products to 2 districts, East and West Godavari
Districts & Khammam.
ATLANTA BEGINNINGS :
It was 1886, and in New York, workers were constructing the status of
Liberty. Eight Hundred miles away another great American Symbol was about to be
unveiled.
Like many people who change history, John Pemberton, a Civil War Veteran
and Atlanta Pharmacist, inspired buy simple curiosity. He loved tinkering with
medical formulas, and one afternoon, searching for quick core for headaches, he
stirred up a fragrant, caramel-colored liquid in a three-legged pot. When it was
done, he carried it a few doors down to Jacob’s Pharmacy.
In first year, the company sold about 9 glasses of Coca-Cola a day. A
century later, the Coca-Cola Company has produced over 10 billion gallons of
syrup. 886-1991, Pemberton sold the company to Atlanta businessman as Griggs
Candler for a total about $ 2300. Candler would become the company’s first
president and the first to bring real vision to the business and brand.
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SAFEGUARDING THE BRAND
1899
The aggressive promotion worked. By 1895 Candler had build syrup plants
in Chicago, Dallas and Los Angeles. Inevitability, the Soda’s popularity led to a
demand for it to enjoyed in new ways. In 1894, Mississippi businessman named
Joseph Bieedenharn became the first to put the drink in bottles. When in 1889, two
Chattanooga lawyers, Benjamin F. Thomas and Joseph B. White head, secured
exclusive rights from him to bottle and sell the beverage for the sum of one dollar.
THE WOODRUFF LEGACY
1909
Advertising focused on the authenticity of Coca-Cola urging consumers to
“demand the genuine” and “accept no substitute”. The company also decided to
create a distinctive bottle shape to assure people they were actually getting a real
Coca-Cola. In 1916, the root glass company or Terre haute, Indian, began
manufacturing the famous contour bottle.
As the country roared into the new censure, the Coca-Cola Company grew
rapidly, moving into Cuba, Puerto Ricol, France and the other countries and U.S.
Territories. In 1900, there were two bottlers of Coca-Cola by 1920 there would be
about 1000.
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THE WAR AND ITS LEGACY
1920 & 1930
Perhaps no person had more impact on the Coca-Cola Company than Robert
Woodruff. In 1923, five years after his father Ernest purchases the company
President. Woodruff was a marketing genius that saw opportunities for expansion
everywhere. He captivated foreign market with innovative campaigns. Coca-Cola
traveled with the US team to the 1928 Amsterdam Olympics; the logo was
emblazoned on racing dog sleds in Canada and the walls of bullfighting arenas in
Spain. Woodruff pushed development and distribution of the six-pack, the open top
cooler, and all innovations that made it easier for people to drink Coca-Cola.
A WORLD OF CUSTOMERS
1960’s
New brands introduced Sprite, Fanta, Fresca and TAB joined in 1960’s Mr.
Pibb and Mello Yello in 1970’s coke and cherry coke in 1980’s and POWERADE
and Fruitopia in 1990’s.
1970’s & 1980’s
After 75 years of amazing success with brand Coca-Cola the company
decided to expand new flavors sprite in 1961, Tab in 1963 and Fresca in 1966. The
international appeal of Coca-Cola was emboded by 1971 commercial, were a group
of young people from all over the world gathered on a hilltop in Italy to sing, “I
would like to buy the world a coke.” In 1978, the Coca-Cola company was selected
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as the only company allowance to sell packet cool drinks in the people’s republic of
China.
COCA-COLA NOW
21st Century
In Feb. 2000, Doug draft was named Company’s Chairman. Coca-Cola is
huge international company but draft’s vision is to have the company operate as a
collection of smaller, locally run business. “No one”, draft points out “decide to
enjoy of our product globally.”
That’s why Coca-Cola is committed to local markets, to paying attention to
what people form different cultures and backgrounds like to drink, and where and
how they want to drink it. Every ten seconds, 1,26,000 people chose to reach for
one of the coca-cola company brands, and it is the company’s mission to make the
choice executing and satisfying, every single time.
The present unit in Rajahmundry performs the activity of bottling. The
manufacture the drink, package and distribute it locally. They produce accreted
water with flavors of Coca-Cola, Thums Up, Sprite, Fanta, Limca, Soda (Kinley).
And the sale products are water and Maaza.
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THE UP OF PARLE WITH COKE:
After a long period of 16 years Coca-Cola (coke) India Ltd., has read the
Indian market. M/s. Parle (Exports) Pvt. Ltd., got merged with coke India Limited
in November 1993 under the agreement that all of Parle with be marketed under the
brand name of Coke India Ltd., There are many reasons for multinational companies
showed interest to set up their own units in India, Coke also wanted to enter the
Indian Market again after a period of 16 years. Already coke international company
entered in the market, heavy competition from the Pepsi Foods Pvt. Ltd., The
competition between these two companies may be too severe to parle. To withstand
their position in the market and to survive in the long run are multinational
companies and with them in terms of Rupees, which has very low value when
compared to a Dollar. In order to survive in the long and with stand in the market
position, Parle got merged with Coke India Ltd., rather than fighting with
multinationals. The other advantages for the Parle group by the merging are:
• Dollar to Rupee Value
• Rapid Market Development
• Much Exposure
• International Image.
The Coke India Limited is having its plants, 2 in Kolkatta and 4 in Delhi. In
beginning it has launched its products Coca-Cola in Amritsar, Chandigarh,
Ludhiana, Kolkatta, and Delhi. The response to the product to the products is very
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encouraging. The next launch was in Chennai, Hyderabad and Secunderabad. The
product was launched in October 1994 in Visakhapatnam October 1995 in total it
has 18 plants.
Coke India Ltd., is the principal supplier of concentrate to all franchise units
of Parle. Coke is manufacturing and marketing only 4 products which are shown in
table 1.4 with the up coke can market the other flavored products of Parle Brands,
there by giving the products a higher international image. The coke has 81% market
share and Pepsi and Artos and remaining market share.
COKE PRODUCTS MANUFACTURED AND MARKETED ABROAD
PRODUCT FLAVOUR
Coca-Cola Cola
Sprite Clear Lime
Fanta Orange
Thums Up Cola
Table no:2.1
G) CURRENT AND FUTURE OF THE SOFT DRINKS IN INDIA
CURRENT STATUS:
The market for soft drinks in India is 120 million crates (24 bottles per
crate). It has been growing at 5.6% per annum for the last few years. It seems like a
lot, but according to markets, this amounts to just 3 bottles per capita.
CONSUMER HABITS AND PRACTICES
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Soft drinks come under the category of products purchased in impulse. This
attitude of impulse buying is slowly changing to occasion-led buying and also to
some extent to consumption through home refrigeration particularly in urban
countries.
The market is slowly moving from non alcoholic carbonated drinks to fruit
based drinks and also to plan bottled water due to lower price and ready availability.
Consumers purchase soft drinks to quench thirst. Therefore people traveling
and not having access to hygienic water reach out or soft drinks. This accounts for a
large part of sales.
Brand awareness plays a very crucial role in purchase decisions.
Consumers prefer convenient and economy products.
Availability in the chilled form effects the purchase decision. This has made
both the companies to push its sales and to increase its retail distribution by offering
Visi Coolers to retailers.
While there is no aversion to consumption of soft drinks by any age group,
the main consumers of this market are people in the age group of 30 and below.
MARKET SIZE AND GROWTH:
31
Soft drink market size FY00 was around 270mm cases (6840mm bottles).
The market, which was witnessing 5% growth in the early 90’s and even slower
growth at around 2-3 % in late 80’s. Presently the market growth has slowed down
with growth rate of 7-8 % per annum compared to 22% growth rate in the previous
year. The Market size for FY01 is expected to be 7000 mm bottles.
YEAR PRODUCTION
90-91 2195
91-92 2490
92-93 2800
93-94 3000
94-95 3240
95-96 4000
96-97 4450
97-98 4920
98-99 5670
99-00 6480
00-01 7000
01-02 7400
02-03 7800
03-04 8100
04-05 8400
05-06 8600
Table no:2.2
MARKET CHARACTERISTICS:
The soft drink market is highly skewed in terms of place consumption, in
terms of regional distribution and soft drink flavors as well as in terms of SKU’s
while 80% of the consumption is impulse based outside home 20% comes from
consumption at home. This trend is slowly changing with increase in occasion led
sales. Changing life style, increasing urbanization and impact of liberalization has
slowly and gradually started moving the market from impulse led to occasion led
and home refrigeration led consumption.
32
The market preference is highly regional based. While Cola drinks have
main markets in metro cities and northern states UP, Punjab, Haryana etc. Orange
flavored drinks are popular in southern states. Sodas too are sold largely in southern
states besides through bars. Western markets have preference towards mango
flavored drinks Diet coke presently constitute just 0.7% of the total carbonated
beverage market.
In terms of SKU’s the market is skewed towards 300 ml which constitutes
around 80-85% of the market rest is in the form of other pack sizes. But with
occasion led and home refrigeration led consumption the sales of bigger SKU’s like
more than one litre pack sizes has increased this has led to increase in contribution
from PET bottles sales to 15% of the total turnover in FY00 most of the Pet bottle
sales, up to 75% are in urban areas. Pepsi’s Cola product is targeted towards youth
while the Mirinda and 7UP positioned on fun platform and for enjoying light
moments of life.
The distribution network or Coca-Cola had 6.5 lakh out lets across the
country FY 2000 which the company is planning to increase to 8 lakhs by FY 2001.
On the other hand Pepsi Co’s distribution network had 6 lakhs outlets across the
country during FY 2000 which it is planning increase to 7.5 lakhs by FY 2001.
MAJOR PLAYERS AND MARKET SHARES :
33
The soft drink market in India is dominated by the two global majors Pepsi
and Coca-Cola. Coca-Cola which had wound up its India operations during the
introduction of the FERA regime, reentered 16 years later in 1993. Coca-Cola
acquired major chunk of the son drink market by buying local brands. Thums Up,
Limca and Gold Spot from Parle beverages. Coca-Cola has also acquired Cadbury
Schweppes soft drink brands Crush, Canada Dry and Sport Cola in 1999 and now
recently in October’00 it acquired distribution rights of these brands from IFB Agro
Limited. Pepsi although started a couple of years before Coca-Cola in 1991, has a
lower market share today. It has bought over Mumbai based Duke’s range of soft
drink brands. Both the cola manufacturers come up their own market share figures
and claim to have increased their share. Recently in August 2000 Pepsi claimed to
have increased its market share for first 5 months of calendar year 2000, to 49%
from earlier levels of 47.3% while Coke claims 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 Orgy’s data while that of Pepsi are based in IMRB data.
MARKET SHARE (in %)
Brand Name Market share in (%) Market Share (in %)
(ORG fig) IMRB figures

Pepsi 41 49
Coca-Cola 57 48
Table no: 2.3
There is no involvement of wholesalers in the distribution of products. It is
more like an agent network. The companies have divided the country into various
34
regions and established a franchisee in each region. The franchisees have their own
bottling plants and manage all the day to day operation. However, of late, the soft
drink companies have started setting up company owned bottling units have been
acquiring some of its franchise bottles.
MANUFACTURING PROCESS:
Soft drinks may be carbonated or non-carbonated. For carbonated drinks
carbonation forms a critical part of the process. In carbonated carbon dioxide is
dissolved in the water, which is used in manufacturing the drink. Normally, the
ingredients in soft drinks are as follows-acidulate (citric, malic or phosphoric acid),
sweetener, flavor and preservative.
In a bottling plant, soft drink Company’s supply concentrates to the bottlers
where it is diluted in distilled water along with other ingredients in specific
proportions. The quality of this mixture is maintained through strict controls.
RETAILERS PERCEPTION :
A survey was conducted to study the retailer’s views of the present market,
future trends and the consumer behavior patterns. The findings of the survey are as
follows:
Retailers stated that the consumers are loyal to the particular segment of the
soft drink ie., Cola, Orange or Lemon. But as far the loyalty for the brands in each
segment is concerned, it is not very significant.
35
43% of the retailers surveyed told 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 purchase of soft drinks is
concerned. The retailer push becomes a critical issue. They usually sell the product
in which they get the maximum benefit. For this the companies try to offer them
higher margins.
While distributors get margin of Rs.8-9 per catre (1catre = 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 Visi-coolers scheme to their main retailers.
CLASSIFICATION:
Classification based on packaging
 Bottled Soft Drinks
 Tetra Packs, Dispenses
 Cans
 Pet Bottles
PROBLEMS SPECIFIC TO INDIAN SOFT DRINK INDUSTRY :
36
The Government of India has considered the soft drink as non-essential. As
a result, the government on the bottled soft drink levied heavy excise duty. Today
soft drink costs Rs.5 to Rs.50. Based on the quality to the customers. However, in a
country like India where 40% of the population exists below poverty line consumers
cannot afford such price. As a result the trading activity of the soft drinks are
concentrated in and around major towns and cities where the purchasing power of
the people and standard of living is high.
Growth rate of this industry in India is also not encouraging, Infact, data
from the Ministry of Food Processing show that growth rate in the soft drink market
was the minimum in 1996.
Changes in technology and consumer tastes brought about many changes in
the Indian Soft Drink Industry from the time of introduction or soft drink in India till
today.
PROFILE OF SRI SARVARAYA SUGARS LIMITED, BOTTLING UNIT,
VEMAGIRI.
Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri was a subsidiary
to Sri Sarvaraya Sugars Limited, Chelluru. There was another Bottling Unit under
the same company at Sathupalli. Both Vemagiri and Sathupalli units operate under
the same management. The Vemagiri Unit was given the franchise of Parle
(Exports) Pvt. Ltd., in 1968. Its area of Distribution is East and West Godavari
37
Districts in Andhra Pradesh. In April 1991 the Districts of Chandrapur and
Gatcheroli in Maharashtra and Raipur, Durg, Rajnndogan and Bastar Districts in
Madhya Pradesh have been allotted to the company for distribution of Parle soft
drinks. The supply of soft drinks to these areas is being made from the Sathupalli
Unit. Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri, was situated at
Vemagiri on National Highway No.5 which is about 10 Kms. From Rajahmundry.
It manufactures aerated waters like Coca-cola, Thums Up, Sprite, Fanta, Limca,
Maaza and Kinley Club Soda and proposes to expand its activities by introducing
Coca-Cola & Fanta to about 12,000 crates per day.
From 1968 to 1984, the Vemagiri Unit operated with a capacity of 200 BPM.
The actual expansion of the plant was started from 1984. In 1984, a new Bottle
Washer and New Filler were purchased and a separate Administrative Building was
built in the premises.
In 1991, a New Maaza plant with Hot Process was built which posted over 5
to 6 Lakhs. In 1994, the company proposed to install a new Bottling Line costing
about Rs.10.5 Crores to meet the increased demand on the capacity due to the
introduction of Coca-Cola and other brands. The machinery is totally imported from
Germany. By the end of July, 1995, the production was started.
Earlier, crates were handled manually. Now they are taken in pallet with a
capacity of 32 crates per palet. This is lifted by Fork Lifter which costed Rs.7
38
Lachs. This system is at present working for unloading the empty bottles from the
vehicles and it is also being tried for loading purpose. If loading is done manually, it
requires ten people to work for one hour to load a truck. But with the above system,
it takes only 30 min. with four people. Thus, the Bottling Unit is trying to
mechanize to the possible extent.
The Vemagiri Bottling Unit is the Franchise that buys concentrate from
HCCBPL and prepares the carbonated drinks and market them in the Area allotted
to it. The bottler is under license of the parent company but it acts as an independent
organization with class links to the parent company HCCBPL.
For taking up the production of Coca-Cola brand, any bottling unit should
introduce paramix Rs.2 Crores and plastic crates and bottles contains Rs.2 Crores on
the hold for the expansion of plant, for importing the machinery and for other
facilities. Rs.16 Crores are being invested by the B.U. at present HCCBPL sales in
AP are 135 Lachs creates.
SALES GROWTH of Sri Sarvaraya Sugars Limited, Bottling Unit, Vemagiri
Year Growth Rate (In %)
1991-92 14
1992-93 28
1993-94 18
1994-95 13
1995-96 17
1996-97 21
1997-98 19
39
1998-99 17
1999-00 18
2000-01 16
2001-02 21
2002-03 24
2003-04 26
2004-05 29
2005-06 31
Table no:3.1
Flavours Introduction specification of Years
S.No. Name of the Product Flavour Date of Introduction

1. Limca Cloudy Lemon 1972 February
2. Maaza Mango 1976 November
3. Thums Up Cola 1978 June
4. Bisleri Club Soda Soda 1982 June
5. Coca-Cola Cola 1995 July
6. Fanta Orange 1996 January
7. Sprite Clear Lime 1999 May
Table no: 3.2
PLANT CAPACITY:
The company installed a Semi Automatic Plant conforming the layout, the
present capacity of the plant is 600 bottles per minute per shift of 8 hours i.e., 15,000
40
crates and for the hour 1875 crates. In summer season production in 4 shifts
produce 22,500 crates. Recently company started another B.U. of at Kesavaram of
starting production capacity of 600 BPM.
LOGO
ORGANISATION:
It is the grouping of activity necessary to attain the objective of the company.
The activities are assigned to people with authority to fulfill the goods.
The Managing Director is the Head of the Organization. He is In-charge of
Production and Marketing and other activities. Production manager is given the
charge of complete production.
PLANNING :
Strategic planning sets the stage for the rest of the planning in the process or
developing and maintaining a strategic planning between the organizations goals and
41
capabilities and its changing the organizational objectives and selecting strategies to
achieve these objectives.
PLANT SCHEDULE :
In fixing each brand on the basis of availability of empty bottles, market
demand and inventory position of tilled bottles. The warehouse can facilitate and so
the production is also limited to the capacity of the warehouse.
RAW MATERIALS :
The raw materials required for manufacturing various brands of soft drinks
are flavor, essence and concentrates of cola, which are supplied by parle, Sugar and
water are required Sugar is taken from S.S.S. Ltd., and water is supplied by
borewells, two bore wells are available in the S.S.S.Ltd., B.U. Water is treated with
chemicals and purified (ie., Water treatment plant capacity is 4,00,000 M 3. The
following chemicals are required HCL, Naocl, Nachl, Shamp, Nact2 and Co2. Above
chemicals are used in water treatment plant.
PLANT LAYOUT:
According to the sequence of operations the machines and equipments are
an-anged. The machinery and workers are specialized in the performance of
specific operations such as preparations of Syrup, filling the bottles aerating and
42
sealing the bottles with lids. All these operational approach is a continuous
movement. The layout of the bottling plant installed by the company to produce soft
drink is a line layout.
QUALITY CONTROL:
The company takes great care to maintain the quality or the products or their
factory. The bottles are carefully examined for impurities continuously as the
bottles move out. Random samples are taken every half an hour and subjected to
chemical analysis in the laboratory.
The flavour content, Sugar Percentage, Smell, Appearance and Taste of the
product are checked.
INCENTIVES TO THE PRODUCTION STAFF:
The company is giving incentives to all the markets engaged in production.
They had given moral wages and the incentives are paid in addition to their wages
when production target per shift is achieved. In the peak demand seasons, the extra
4 hours worked by the worker is paid double the normal wages.
COMPETITORS FOR S.S.S. LTD., BOTH UNIT :
Apart from competition from organization sector like Pepsi, Mc Dowells
etc., S.S.S.Ltd., Each unit is facing competition from the unorganized sectors was
33% now it has reduced considerably to the negligible number. The main
competitors from the unorganized sector are Artos, Vimal, Bajaj and N.V.R. Drink.
43
Artos is selling Rs.5 per bottle and Vimal and Bajaj at Rs.5.00 per bottle. There
local competitors survive in the market only because of price factor basically. They
are exempted from the central excise duty and as such they are maintaining an
approximate difference of Rs.35 per crate. Their activity is restricted to semi rural
markets and these products could not be able to create any image or identity.
ORGANISATION STRUCTURE:
Organization structure is a basic framework within which the manager’s
decision making behavior takes place. Structure basically deals with relationships.
Organization structure is the pattern of relationship among various components of
parts of the organization. This prescribes the relationships among various activities
and positions. Since various persons hold these positions, the structure is the
relationships among people and the organization.
There are two types of organizations they are Formal organization and
informal organization. Organization chart is the vital tool for providing information
about organizational relationships. Such a chart diagrammatically form which
shows the major functions and their respective relationships, the channels of formal
authority and the relative authority of each manager who is in-charge of each
44
respective function. The organization chart shows only formal relationships, the
informal relationships are mostly transitory and flexible. So they are not depicted on
the chart. Moreover, it depicts formal relationships only at a given point of time.
Organization charts can be divided into master charts and supplementary
charts. The master chart shows the entire formal organization structure. The
supplementary charts show details of relationships. Authorities and the duties
within the prescribed area of department or major component of the company.
Organization Structure of Marketing Department
Board of Directors
Managing Director
Manager
Sales Manager
Asst Sales Manager
45
Marketing Marketing Marketing Marketing Marketing Marketing
Marketing
Executives Executives Executives Executives Executives Executives
Executives
Diagram no: 3.1
SALES PROMOTION COCA-COLA IN INDIA
In today’s economy, most producers don’t sell their goods directly to the
ultimate users. Between them and final users stands a host of marketing
intermediaries a variety of functions and bearing a variety of names. Product’s
characteristics have a higher influence over the channel that is to be used. Each
product is a bundle of attributes. Some attributes such as perish ability, bulkiness,
degree of product standardization, Service requirements and unit value often are the
very imprint implications for channel design.
The channel used by HCCBPL for the distribution of its products clearly
reveals that bulky should have minimum handling turnover. If the soft drinks are
manufactured and bottled with the HCCBPL degree of product standardization,
service requirements and unit value often are the very imprint implications for
channel design.
46
The channel used by HCCBPL for the distribution of its products clearly
reveals that bulk products should have turnover. If the soft drinks are manufactured
and bottled with the CI’s sell the concentrate to the bottles and markets the product
in the fined franchisee areas through retailers in the given franchise areas. It is the
distribution of the franchisee to set up his own distribution system, the ultimate aim
behind it being efficient catering.
Franchising Lisa system of distribution under a licensing system through
which the owner of a product. Method or service approaches independent
businessmen in selected territories appoints them as sole franchisee for particular
areas and encourages them to make profit for themselves whilst the owner retains
control over the technique or style with which the product or service is
merchandised.
Franchising involves conferring temporary monopoly rights of production
and/or distribution of specified goods or services by the producer to an agency.
Franchise system for consumer products like soft drinks may be defined as a
business form essentially consisting of an organization (the franchiser) with a
market tested business package, centered on a product or service entering into a
continuing contractual relationship with franchisees. Typically self-financed and
independently owner managed small firms, operating under the franchiser’s, trade
47
name to produce and/or market goods or services according to a format specified by
the franchiser.
PROFILE OF Coca-Cola India
The profile of CCI can be studies under two heads ie., profile of Parle
(Exports) Pvt. Ltd., and profile and the profile CCI . Parle (Exports) Pvt. Ltd.,
entered into a joint venture with Coca-Cola in 1993. The main reason behind
Parle’s entry into this Joint Venture is that with the entry of two multinational
companies, it is difficult for Parle to retain its Bottling Plants. Before the entry of
Pepsi’s entry 7 of them have gone to Pepsi and Parle was left with 48 B.U.’s. Now
if Coca-Cola enters India on its own, then probably another 10 B.U’s may go to it
and the result is increase in the area of operation and parle faces the problem of loss
in market share. Many people were of the opinion that if coke enters India, then
Thums Up will definitely loose its hold in the market. A survey was organized by
A&M in 1994, one year after the launch of coke and found that Thums Up is the
most powerful soft drinks brand for all three family members polled.
With increase in the area of operation and with the capacity of the B.U’s
remaining same, the availability of parle products may become a problem in some
areas and in some seasons. In soft drink industry, availability plays a vital role. If
this aspect is overlooked, Parle definitely foregoes its market share in the long run.
So in order to retain its position, Parle entered into a Joint Venture with Coca-Cola.
Parle brands are named as Acquired brand by Coca-Cola. When we consider the
above aspect, we can say that Ramesh Chauhan, President, Parle (Exports) Pvt. Ltd.,
48
has taken a right step at the right time. Now the company’s name is Coca-Cola
India (CCI).
Parle was initially a confectionary company. It manufactured Biscuits and
Chocolates. Parle’s Glucose Biscuits was a well-known brand. There was an
interesting story behind parle’s diversification into soft drinks. Mr. Jayanthilal
Chauhan, Father of the President Chief Mr. Ramesh Chauhan once came on a
business visit to Madras. In Madras, he saw an Artos Soft Drink in retial outlet and
enquired about it. He was surprised to know that it was local brand in South India.
He wondered how a small local brand belonging to south find a place in a
metropolitan city like Madras. He enquired about the manufacturer and learnt that
the plant was located at Ramachandrapuram of East Godavari District in Andhra
Pradesh. He came all the way from Madras to R.C.Puram and met Mr. Padmanabha
Raju, the owner of ARTOS. He learned everything about the soft drinks from him
but Mr. Raju refused to give him the formula to prepare the concentrate. Then Mr.
Chauhan came back to Bombay and turned his attention towards soft drink PARLE-
ORANGE in 1966, packed in 200 ml. Glass bottle. The drink lasted for over 10-12
years.
After Jayanthilal Chauhan, his two sons Mr. Ramesh Chauhan and Prakash
Chauhan took over his business. Ramesh Chauhan after his entry, developed the
present Franchise system, which was now under CCI, Ramesh Chauhan entered the
industry in 1968. Before the introduction of Thums Up there was another Cola
brand Parle PEPINO. But it could not stand against the image created by Coca-
49
Cola. People would not look to another cool drink except Coca-Cola even after its
exit. And more over, the package of pepino was also not good. So it failed.
CCI operates with the franchise system, there by defining the area of
operation for every franchise holder to whom it sells the concentrate. The
Franchisees buy the concentrate from CCI, Bombay and mix it with purified, sweet
end and processed water, then the carbonate and fill it in sterilized bottles and sell
them in the local market.
In India, there are 60 Franchise Units for CCI. In Andhra Pradesh there are
B.U.’s under CCI and 3 under Pepsi. The 7 Bottling Units in Andhra Pradesh
according to their order of establishment are :
1. Hyderabad.
2. Vijayawada
3. Visakhapatnam
4. Rajahmundry
(The Franchise under study, S.S.S.Ltd. B.U.. Vemagiri)
5. Secunderabad
6. Nellore
7. Khammam
(under the name of S.S.S.Ltd., B.U., Sathupalli)
50
The targets regarding sales, marketing inputs are fixed by CCI to his
franchise holder and are followed up throughout the year. The Marketing Program
is handed over to the respective holder at the beginning of the year.
The control of CCI over its franchise exists through quality control,
marketing program and production. It plans the promotional activities, which have
to be implemented by the franchise holders. It directly or indirectly controls each
and every aspect of their operations.
CCI’s products according to their year of Introduction to the market.
BRAND FLAVOUR YEAR OF ENTRY

Gold Spot Orange 1968
Kismat Pineapple 1968
Limca Lemon 1972
Bisleri Soda Soda 1974
Maaza Mango 1976
Thums Up Cola 1978
Maha Cola Cola 1991
Citra Clear Lemon 1991
Coca-Cola Cola 1993
Fanta Orange 1996
Sprite Clear Lime 1998
Table no:3.3
The Coca-Cola Company engages in manufacturing, distributing and
marketing non-alcoholic beverage concentrates and syrups worldwide. The
company also produces, markets, and distributes juices and juice drinks as well as
51
water products. It sells beverage concentrates and syrups to bottling and canning
operators, distributors, fountain wholesalers, and fountain retailers. The company’s
beverage products comprise bottled and canned soft drinks and beverages, as well as
concentrates, syrups and not-ready-to-drink powder products. In addition the Coca-
Cola company markets and distributes sports drinks, teas, coffees and other
beverage products. The company was organized in 1886 and is headquartered in
Atlanta, Georgia.
Southerners like their drinks sweet, and for Coca-Cola Bottling Co.
Consolidated (CCBCC), there’s nothing sweeter than a Coke. CCBCC produces
and distributes beverages, principally products of the Coca-Cola Company, mainly
in the Southeast. It is the 2 bottler of Coca-Cola in the US (behind Coca-Cola
Enterprises), serving an 11-state territory, which is home to about 18 million
prospective cola consumers. CCBCC also produces and markets other beverages,
including Dr. Pepper, Seagram drinks and Sundrop. Coca-Cola products ring up
approximately 90% of CCBCC’s Sales. Chairman and CEO Frank Harrison and his
family, together with director Reid Henson, control about 92% of CCBCC’s voting
stock.
Coke is it – “it” being the world’s top soft-drink company. The Coca-Cola
Company owns four of the top five soft-drink brands (Coca-Cola, Diet Coke, Fanta
and Sprite). Among its other brands are Barq’s, Fruitopia, Minute Maid, Powerade,
and Dasani Water. In North America, it sells Groupe Danone’s spring water brands
(Evian, Dannon and Sparklets).
52
Coca-Cola sells crush. Dr. Pepper and Schweppes outside Australia, Europe
and North America. The firm sells about 400 drink brands, including coffees,
juices, sports drinks and teas in about 200 nations. Although it does no bottling
itself, the company owns about 36% of Coca-Cola Enterprises, the Largest Coke
bottler in the world.
COCA – COLA WORLD WIDE
The Coca-Cola Company exists to benefit and refresh everyone it touches.
Founded in 1886, our company is the world’s leading manufacturer, marketer and
distributor of non-alcoholic beverages concentrates and syrups, used to produce
nearly 400 beverage brands. Our corporate headquarters are in Atlanta, with local
operations in over 200 countries around the world. For more than 115 years the
Coca-Cola Company and its bottlers have issued a phenomenal amount of colorful,
fanciful and beautiful advertising and promotional items that captured the cultural
spirit and artistic trends of their times.
TRADEMARKS
Our trademarks are our most valuable assets. The trademark “Coca-Cola”
was registered with the U.S. Patent and Trademark Office in 1893, followed by
“Coke” in 1945. The unique contour bottle, familiar to consumers everywhere, was
granted registration as a trademark by the U.S. Patent and Trademark Office in
1977, an honor awarded few other packages.
53
In 1982, the Coca-Cola Company introduced Diet Coke to U.S. Consumers,
marking the first extension of the Company’s most precious trademark to another
product. Later years saw the introduction of additional products bearing the Coca-
Cola name, which now encompasses a powerful line of cola products. Today, the
world’s favorite soft drink, Coca-Cola, is one of the world’s best and most admired
trademarks, recognized by more than 90 percent of the world’s population.
BIRTH OF A REFRESHING IDEA
John Stitch Pemberton first introduced the refreshing taste of Coca-Cola in
Atlanta, Georgia. It was May of 1886 when the pharmacist concocted a caramel-
colored syrup in a three-legged brass kettle in his backyard. He first “Distributed”
the new product by carrying Coca-Cola in a jug down the street to Jacobs’
Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda
fountain. Whether by design or accident, carbonated water was teamed with the
new syrup, producing a drink that was proclaimed “Delicious and Refreshing”. John
Pemberton’s partner and bookkeeper, Frank M.Robinson, suggested the name and
penned “Coca-Cola” in the unique flowing script that is famous worldwide today.
Mr. Robinson thought “the two C’s would look well in advertising”. In 1886, sales
of Coca-Cola averaged nine drinks per day.
That first year, Pemberton sold 25 gallons of syrup, shipped in bright red
wooden kegs. Red has been a distinctive color associated with the number one soft
drink brand ever since. For his efforts, Pemberton grossed $50 and spent $ 73.96 on
54
advertising. By 1891, Atlanta entrepreneur Asa G. Candler had acquired complete
ownership of the Coca-Cola business. Within four years, his merchandising flair
helped expand consumption of Coca-Cola to every state and territory. In 1919, the
Coca-Cola Company was sold to a group of investors for $25 million. Robert W.
Woodruff became President of the Coca-Cola Company in 1923, and his more than
six decades of leadership took the business to unrivaled heights of commercial
success, making Coca-Cola an institution the world over.
ADVERTISING
Advertising has played an important role in the success of our products since
our First Newspaper Ad in 1886, which read “Coca-Cola, Delicious! Refreshing!
Exhilarating! Invigorating!” The Company uses advertising to trigger desire as
often and in as many ways as possible. Throughout the years, slogans for Coca-Cola
have always been memorable. Here are some highlights :
2000 - “Coca-Cola Enjoy”
1993 - “Always Coca-Cola”
1990 - “Can’t Beat the Real Thing”
1989 - “Can’t Beat the Feeling”
1986 - “Red, White and You”
1982 - “Coke Is It”
1976 - “Coke Adds Life”
1971 - “I’d Like to Buy the World a Coke”
1969 - “It’s the Real Thing”
55
1963 - “Things Go Better with Coke”
1959 - “Be Really Refreshed”
1944 - “Global High Sign”
1942 - “It’s the Real Thing”
1936 - “It’s the Refreshing Thing To Do”
1929 - “The Pause That Refreshes”
Fine illustrations by noted artists, including Norman Rockwell and N.C.
Wythe, were the hallmark of early campaigns in premier magazines. Artist
Haddon Sundblom’s Portraits for holiday ads, which began in the 1930’s, helped
mould the national image of a red-suited Santa Claus. Fresh, Creative and Tasteful,
Advertising images for Coca-Cola have always set a high standard of quality for
other products around the world. The Company recognizes that Coca-Cola belongs
to the billions of consumers in every corner of the globe who have chosen it as their
favorite soft drink. Our advertising reflects that special relationship between
consumers and the simple moments of pleasure they have come to associate with
Coca-Cola.
Coca-Cola is…..
 The Symbol of Quality
 Customer and Consumer Satisfaction
 A Responsible Citizen of the World
GLOBAL BUSINESS
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Entering the last quarter of the 20th century, the deep emotional bond
between Coca-Cola and its consumers grew even more powerful and more global.
In 1971, young people from around the world gathered on a hilltop in Italy to sing
“I’d Like to Buy the World a Coke”, a counterpoint to turbulent times. This was
also a glimpse into the Company’s future: an expanding global presence and an even
closer attachment to the world’s most cherished trademark.
The power and prestige of Coca-Cola were exemplified in 1988, when three
independent worldwide surveys conducted by Landor & Associates confirmed
Coca-Cola as the best-known, most-admired trademark in the world.
COCA-COLA IN INDIA
After a 16-years absence, Coca-Cola returned to India in 1993. The
Company’s presence in India was cemented in November that year in a deal that
gave Coca-Cola ownership of the nation’s top soft-drink brands and bottling
network.
 Coca-Cola India has made significant investments to build and continually
improve its business in India, including new production facilities,
wastewater treatment plants, distribution systems and marketing
equipment.
 During the past decade, the Coca-Cola system has invested more than US $ 1
Billion in India
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 In 2003, Coca-Cola India pledged to invest a further US $ 100 Million in its
operations.
 Coca-Cola business system directly employs approximately 6,000 local
people in India.
 In India, we indirectly create employment for more than 125,000 people
in related industries through out vast procurement, supply and distribution
system.
 Virtually all the goods and services required to produce and market Coca-
Cola locally are made in India.
 The Coca-Cola system in India comprises 25 wholly-owned company
owned bottling operations and another 24 franchisee-owned bottling
operations.
 A network of 21 contract-packers also manufactures a range of products for
the Company.
 The complexity of the Indian market is reflected in the distribution fleet,
which includes “10-tonne trucks, open-bay three-wheelers that can navigate
the narrow alleyways of Indian cities, and trademarked tricycles and
pushcarts.”
PRODUCTS & QUALITY :
Leading Indian Brands Thums Up, Limca, Maaza, Citra and Gold Spot
join the Company’s international family of brands including Coca-Cola, Diet Coke,
Sprite and Fanta, plus the Schweppes product range.
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 Our Kinley Water Brand was launched in 2000.
 Annual per capital consumption of soft drinks in India is nine 8-ounce
servings.
 In early 2003, Coca-Cola India collected Advertiser of the Year and
Campaign of the Year awards for the Thanda Matlab Coca-Cola all-
media campaign.
 The Company ranking up “Firsts” in the introduction of Canned and PET
soft drinks, vending machines and backpack dispensers for crowds of
cricket supporters.
 The Coca-Cola system adheres not only to national laws on food
processing and labeling, but also to our own strict standards for exceptional
quality.
 In everything we do, from the selection of ingredients to the production of
our beverages and their delivery to the market place, we use our specialized
Quality Management System, The Coca-Cola Quality System, to ensure
that we are offering consumers only the highest quality products.
 We monitor our success through our customer and consumer feedback and
our in-trade monitoring programs, and this information enables us to
continuously improve our already demanding systems.
 While The Coca-Cola Company is a global company with some of the
world’s most widely recognized brands, the Coca-Cola business in India, as
in each country where we operate, is a local business. Our beverage.
59
SALES PROMOTION
Sales Promotion includes tools for consumer promotion (Samples, Coupons,
Cash Refund offers, Prices off, Premiums, Prizes, Patronage Rewards, Free Trails,
Warranties, Tie in promotion (Price off, advertising and display allowances, and free
goods), business and sales force promotion (trade shows and conventions, contests
for sales representatives and specialty advertising).
Sales Promotion tools are used by most organizations, including
manufacturing distributors, retailers, trade associations, and non profit organizations.
A decade ago, the advertising – to – sales – promotion ration was about 60:40.
Today in many consumer packaged-goods companies, sales promotion expenditures
have been increasing as a percentage of budget expenditure annually for the last two
decades.
Several factors contribute to the rapid growth of sales promotion, particularly
in consumer markets, Internal factors include the following : Promotion is now
more accepted by the top management as an effective sales goal: more product
managers are qualified to use sales – promotion tools: and are under greater pressure
to increase the current sales, External factors include the following: the number of
brands has increased: competitors use promotion frequently: many brands are seen
as similar: consumers are more price-oriented, the trade has demanded more deals
from manufactures: and advertising efficiency has declines because of rising costs,
media clutter and legal restraints.
60
In general, large scale advertising campaign go with the soft drink industry.
Television advertising generally ports way an adventurous mood. Hoardings and
printer advertisements convey similar ideas.
MAJOR DECISION IN ADVERTISING
Marketing Management must make five important decision when developing
and advertising programs. Setting objectives : The first step in developing an
advertisement program is to set an advertising objective. These objectives should be
based on part decisions about the target market, positioning and marketing mix. The
market positioning and mix strategy defines the job that advertising must be doing in
the total marketing program.
Many communication and sales objectives can be set for advertising. Cooley
lists fifty possible advertising objectives in his well-known “Defining Advertising
goals for measured advertising results”. He outlines a method called DAGMAR
(after the books title) for turning advertising objectives into specific measurable
goals.
An Advertising objectives into specific communication that is to be
accomplished with specific target evidence during a specific period of time.
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Advertising objectives can be classified by purpose – whether their aim is to inform,
persuade or remind.
Information advertising is used heavily at the time of introducing a new
product category, when the objective is to build primary demand. Thus producers of
compact disk players first usually, inform their consumers about the sound and then
go to informing them benefits or a CD.
Some persuasive advertising has become comparison advertising which
compares on brand directly or indirectly with one or move other brands. For
example in its classic comparison campaign. Avis positioned itself against market
leading hertz by claiming, “We are number two, so we try harder”. Procter and
Gamble positioned scope against Listerine, claiming that mint – fresh scope “fights
has breathe and does not give medicine breath”, comparison advertising has also
been use for such products as soft drinks, computers, deodorants, toothpastes,
automobiles, wines and pain relievers.
Reminder advertising is important for native products it keeps consumers
thinking about the product extensive. Coca-Cola ads on television are designed to
remained people about Coca-Cola, not to inform or persuade them.
Setting the Advertising Budget
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After determining its advertising objective the company can next set its
advertising budget for each product. The role of advertising is to effect demand for
a product the company wants to spend the amount needed to achieve the sales goals.
Four commonly used methods for setting the advertising budget are discussed
below. Here we describe some specific factors that should be considered when
setting the advertising budget.
 Stages in the Product Life Cycle : Now products typically need large
advertising budgets to build awareness and to gain consumers trial, Matured
brands usually require lower budgets as a ratio to sales.
 MARKET SHARE : High market share brands usually need more
advertising. Building market or taking share from competitors requires large
advertising spending than simply maintaining current share.
 Competition and Culture: In a market with many competitors and high
advertising spending, a brand must advertise more heavily to be headed
above the noise in the market.
 Advertising Frequency : When many repetitions are needed to put across the
brands messages to consumers, the advertising budget must be larger.
 Product Differentiations : A brand which closely resembles other brands in
its product class Cigarettes, Beer, Soft Drinks requires heavy advertising to
get it apart. When the product differs greatly from competitors advertising
can be used to point out the difference to the consumers.
CREATING THE ADVERTISING MESSAGE
63
A large advertising budget does not guarantee a successful advertising
campaign. Two advertising can spend the same amount on advertising and yet can
have different results. Studies have shown that creative advertising messages are
more important advertising success that amount spends on it.
MESSAGE GENERATION
The next after allocating ad-budget is message generation the message about
the product should be very clear and attractive which have an impression on the
consumers. The captions and punch lines of Coca-Cola are very attractive and have
an impact on the consumer psychology.
CHOOSING MEDIA
The media planner has to know the reach, frequency and impact of each
media to be utilized. The major types, in order of their advertising volume, are news
papers, televisions, direct mail, radio, magazines. To advertise its product apart
from hoardings in main junctions, signage, danglers in retail outlets the bottlers vans
are also painted with Coca-Cola logo and message of the product, which provides
(Opportunity to see) OTS to the consumers.
ADVERTISING SPECIALITIES
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Advertising specialties are useful articles imprinted with an advertiser’s
name given as gifts to the consumers. Typical items include pass, Calendars, Key
chains, T-Shirts, Caps and drinking glasses. U.S. Companies spend more than $ 4
Billion each year on advertising specialties. Such items can be very effective. In a
vacant study, 63% of all consumers surveyed were either carrying or wearing an
advertising specialty items.
THEORETICAL FRAMEWORK OF SALES

COMPARISION AND SALES PROMOTION
INTRODUCTION:
The sales comparison is one of the three major groupings of valuation
methods, called the three approaches to value, commonly used in real estate
appraisal. This approach compares a subject property's characteristics with those of
comparable properties which have recently sold in similar transactions. The process
uses one of several techniques to adjust the prices of the comparable transactions
according to the presence, absence, or degree of characteristics which influence
value. As such, all sales comparison approach methods are variations on hedonic-
type measurements, which determine the value of something as the sum of the value
of the various components which contribute utility.
Units of Comparison
The SCA relies on the assumption that a matrix of attributes or significant
features of a property drive its value. For examples, in the case of a single family
65
residence, such attributes might be floor area, views, distance to amenities, number
of bathrooms, lot size, age of the property and condition of property.
Economic Basis
The sales comparison approach is based upon the principles of supply and
demand, as well as upon the principle of substitution. Supply and demand indicates
value through typical market behavior of both buyers and sellers. Substitution
indicates that a purchaser would not purchase an improved property for any value
higher than it could be replaced for on a site with equivalent utility, assuming no
undue delays in construction
Sales promotion:
Sales promotion includes tools for consumer promotion(samples, coupons,
cash refund offers, price off, premiums prices patronage rewards, free trails,
warranties, Tie in promotion (price off, advertising and display allowances, and free
goods),business and sales forces promotion (trade shows and conventions, contests
for sales representatives and speciality advertising).
Sales promot6ion tools are used by most organizations, including
manufacturing distributors, retailers, trade associations, and non profit
organizations.A decade ago, the advertising- to-sales promotion ration was about
60:40. today in many consumer packaged-goods companies, sales promotion
expenditures have been increasing as a percentage of budget expenditure annually
66
for the last two decades. Several factors contribute to the rapid growth of sales
promotion, particularly in consumer markets.
Internal factors:
They include the following: promotion is now more accepted by the top
management as an effective sales goal: more product managers are qualified to use
sales- promotion tools: and are under greater pressure to increase the current sales.
External factors:
They include the following the number of brands has increased competitors
use promotion frequently many brands are seen as similar consumers are more price-
oriented, the trade has demanded more deals from manufactures and advertising
efficiency has declined because of rising costs, media clutter and legal restraints.
product.
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them effective, such as displays, shows , demonstrations and other non-recurrent
selling efforts not in the ordinary routine.
point of purchase.
Definition of sales:
“Sales promotion consists of a diverse collection of incentive tools, mostly
short-term, designed to stimulate quicker /or greater purchase of a particular product
by consumers and traders
---.Kotler
“Sales promotion represents those marketing efforts that are supplementary
in nature which are conducted for a limited period of time and seek to induce
buying”.
…..Davis
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IMPORTANCE OF SALES PROMOTION:
In a competitive market, sales promotion, sales promotion comes handy to a
marketer, to solve of his short-term hurdles. Short term because, the impact of sales
promotion measures are not that durable and lasting like the results obtained through
advertising and personal selling. Sales promotion, by and large, is understood and
practiced as a catalyst, and a supporting facility to advertising and personal selling.
Objectives of sales display:
The following are the major objectives of any sales display
• It shows the products or services to the potential customer.
• It gives an idea about every detail of the product such as variety, quality,
size, colour, etc.
• It helps the customer to see and examine the goods before they actually buy
them.
• Sales display appeals visually to the prospects and induces them to purchase.
• Sales display reminds the customers about their need and subsequently they
are attracted to buy
• Wholesalers and retailers are satisfied by displays tactics undertaken by
manufacturers and they buy the goods.
TYPES OF SALES DISPLAYS:
There are three forms of display:
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I. Interior Display includes on the floor, walls, in show cases and show boxes.
Goods should be neatly arranged inside the retail outlet. In this type of display,
proper lighting and colour matching should also be ensured so that the overall
effect of interior display becomes pleasing and attractive.
II. Exterior display is the display of products in the show window of the retail
outlet. It creates that long lasting first impression. It also seeks attention of
passers-by as well as prospects and invites them to enter the establishment.
Window dressing is one example of exterior display.
III. Other displays like showrooms, show cases, glass boxes, cupboards, etc. from
part of display. They are used only for sales display but also as a publicity device
for enhancing sales. The success of showrooms and show cases depends, to a great
extent, on the location, decoration, lighting and such other devices.
There are various classes of sales display of which the following are important:
1. Product unit display : such unit displays use merchandise that is identical in
size, colour, shape, use, etc. this type of display is used for bags, readymade
garments, shirts, etc. efficient merchandising is of interest to both the dealer and the
manufacturer.
2. Life-style displays: using the market segmentation approach, life-style display
are used
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ORGANISING SALES PROMOTION CAMPAIGNS:
Though almost all companies resort to sales promotion techniques, only
some of them go about the job in planned way. Others mostly view sales promotion
as a weapon that can be taken out just like that and used in emergent situation. Sales
promotion yields the intended results only when it meets certain basic requirement.
The conditions for success of sales promotion are discussed below.
1. Identifying the requirements:
The first requirement is to identify the specific requirement of the firm in
resorting to sales promotion. Earlier in this chapter, we identified the broad contexts
in which sales promotion techniques can be employed. The find out its need-is it to
bring in substantial extra sales immediately is it to offload accumulated stock is it to
regain loosing consumer interest in the product is it to enlist some support for the
advertising effort that is already on.
2. Identifying the right promotion programme:
The next step is to identify the apt programme Earlier, we discussed the
different tools available for sales promotion. The firm has to select the programme
suitable to the current need and situation. Should it go in for product demonstration
or free samples of the product or should it go in for a large scale consumer contest.
The choice of the programme will be primarily decided by the resources available
with the firm.
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3. Enlisting the involvement of salesmen:
Often, sales promotion programme are conceived and planned at the head
office of the firm and implemented in a hurry without enlisting the cooperation and
involvement of the field sales people. For the campaigns to succeed, it is essential
that the salesmen be briefed on the context and content of the programme.
. They have also to be informed of their roles in the conduct of the
programme, given detailed information / working guides, and be told what they are
expected to do at different stages of the campaign.
4. Enlisting the support of the dealers (trade):
It is also essential to enlist the support of the dealers in any large-scale sales
promotion venture. Since a major part of the activity to take place around the
dealership, the campaign may flop if the dealer is not motivated to support it . the
pop materials and the product under campaign will get the required prominence only
the dealer so desires. While organizing consumer contests, most companies in
corporate dealer contests and dealer motivation programmes.
5. Enlisting the advertisement organizing sales promotion campaigns
Though almost all companies resort to sales promotion techniques, only
some of them go about the job in a planned way. Other mostly view sales
promotions a weapon that can be taken out just like that and used in an emergent
situation. sales promotion yields the intended results only when it meets certain
basic requirements. The conditions for success of sales promotion are discussed
below.
72
Identifying to the requirements:
The first requirement is to identify the specific requirement of the firm in
resorting to sales promotion. Earlier in this chapter, we identified the broad contexts
in which sales promotion techniques can be employed. The firm most find out its
need to bring in substantial extra sales immediately us it to offload accumulated
stock is it to regain loosing consumer interest in the product it is to enlist is it to
some support for the advertising effort that is already on.
Identifying the right promotion programme:
The next step is identify the at programme. Earlier, we discussed the
different tools available for sales promotion. The firm has to select the programme
suitable to the current need and situation. Should it go in for product demonstration
or free samples of the product or should it go in for a large –scale consumer contest
the choice of the programme will be primarily decided by the resources available
with the firm .a big consumer contest cannot be organized send implemented unless
the firm can command substantial resources and organizing capacity.
Enlisting the involvement of salesmen:
Often, sales promotion programmes are conceived and planned at the head
office of the firm and implemented in a hurry without enlisting the cooperation and
involvement of the field sales people. For the campaigns to succeed, it is essential
that the sales men be briefed on the context and content of the programmed agencies
Support
73
The advertisement agency’s support is also essential for the successful
working of a sales promotion venture. Since a major part of the activity has to take
place around the dealer shop, the campaign may flop if the dealer is not motivated to
support it. The POP materials and the product under campaign will get the required
prominence only if the dealer so desires.
Enlisting the advertisement agency’s support:
The advertisement agency’s support is also essential for the successful
working of a sales promotion campaign. Carrying out a sales promotion campaign is
as challenging as conducting an advertising campaign. In fact, for an advertisement
campaign, quite often the results are readily available to be measured.
Maintaining the tempo:
Sometimes the sales promotion campaigns are lunched with great publicity
and fanfare. But subsequently the tempo of the programme is allowed to view out. It
is essential that the initial tempo built around the programme be maintained.
Coordination with other elements of promotion:
Sales promotion programmes yield the best results when they are well
coordinated with the other elements of promotion- advertising, personal selling and
publicity. Sales promotion programme cannot be run totally independent of theses
major promotion variable. When used in combination with them, sales promotion
stands a better chance of meeting its aims.
Choosing a push or a pull strategy of sales promotion:
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• Push strategy:
A sales promotion programme , aimed primarily at is called push strategy .
the marketer will promote to his products heavily among distributors, wholesalers
and retailers. At the lost stage, the retailer promotes them among consumers. A push
strategy usually involves a lot of personal selling and sales promotion including
contests for sales people and display at trade shows.
• Pull strategy:
With a pull strategy, promotion is directed at the ultimate consumers. The
objective is to motivate them to ask retailers for the products. Strategy relies heavily
on advertising and various forms of sales promotion such as samples free gifts etc.
FACTORS INFLUENCING SALES PROMOTION:
• Target market
• Nature of product and services
• Stage of the product life cycle
• Budget available for promotion.
Tools of sales promotion:
• Prize scheme:
Prize scheme are an important method of sales promotion. A prize
scheme is designed for both retailers/ customer and the dealears to make the
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scheme effective, it should be advertised through packages or retailers. The
latest method of advertising is through the press, posters, etc. For dealers, sales
competitions are arranged, prizes are announced or special offers are made if
they show a substantial progress in sales.
•Correspondence :
This could be an effective device for sales promotion a specialized
correspondence section will be more advantages as it can communicates very
effective with prospects as well as potential customer and established for it is
better equipped to write letters.
• Catalogues:
These play dominant role both advertising and sales promotion campaigns.
They are largely used when a manufactures different types of products,
distinguishable by size, shape and others features. It is from the catalogue files that
one can get information required about different products of a particular
manufacturer. The following purposes can be served by catalogues.
• To get orders
• To make the customers aware about the specification
• To provide detailed information
• To solicit products sales
• Advertising Novelties:
Small, Interesting, or personally useful items, etc. can be used for sales
promotion. To be effective, an advertising novelty should meet the following
requirements.
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• Origination of display contests among retailers
• Publicity through newsletters mentioning retailer’s name.
• Provision of display good and fixtures at special subsidiaries prices.
• Photo-flashing of retailers display to bother retailers.
• Cooperative advertising and sales promotion, i.e., promoting the retail store
as well as the manufacturers product on cost-sharing basis.
SALE PROMOTION OBJECTIVES:
Sales promotions are increasingly being used to accomplish an ever-
expanding list of marketing objectives. The company’s marketing objectives and
strategies influence the development of sales promotion objectives and strategies.
There can be a number of sales promotion objectives, depending upon the firms
policies, marketing objectives, nature of the product and its stage in product life
cycle, level of existing and anticipated competitive activity, consumer response
pattern economic conditions and the target group(consumers, traders, or sales force)
etc.
Sales promotion objectives could be either proactive or reactive are
• To gain additional market share or additional revenue
• To expand the target market
• To develop favorable consumer experience with the product
• To add extra value to the product and develop brand franchise
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• Reactive sales promotion objectives are developed in response to some un
favorable market situation, or where the objectives are essential short term,
such as the following.
• In response to competitive moves
• When excessive inventory piles up
• To generate short term cash
• When the decision is to discontinue a product, or close down the business.
In a dynamic and rapidly changing marketing environment, unfavorable
conditions may appear with little or not no warning. It is difficult for the
management to anticipate and plan for such exigencies: however, hasty decisions
regarding sales promotion objectives may sometimes produce adverse effects for the
long-run.
An important area that concerns sales promotion objectives is directly related to
the specific promotional techniques to be used. The techniques could be those where
the measurement of result is straight forward, or difficult to measure. For example, it
is easy to measure the impact of discount offer on sales, but it is very difficult to
measure the impact of premium on the perceived value of the promoted brand.
The company can use sales promotion to achieve many objectives: however,
every offer must start by being specific as to what objectives are intended to
78
achieve. According to Schultz and Robinson in sales Promotion Management
(Chicago: Crain Book, p.149 1982.), the objectives should be:
i. specific
ii. Measurable
iii. clear and concise
iv. practical and realistic
v. affordable, and
vi. attainable.
Perhaps, the most difficult part in managing sales promotion is to decided which
particular sales promotion tools should be used for achiving the specific objectives,
which of these tools can be and should combined to produce a synergistic effect, and
can these be delivered to the target audience, that is or the sales force.
Some of the important sales promotion objectives are mentioned below, and
the more important ones have been discussed briefly.
 Increase sales volume
 Speed up the sales slow moving products
 To check the fluctuation in sales
 Attract new customers
 Launch new product and increase trail
 Encourage repeat purchase
 Clearance of excessive inventories
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 Motivate dealers
 Encourage dealers to participate in display and sales contests
 To gain advantageous shelf-space and increase store traffic
 Improve relationship with dealers
 To block competitors move
 Motivate sales force
 To supplement advertising and personal selling efforts and customers
attention from price.
SALES PROMOTION SYSTEM AT SRI SARVARAYA SUGARS Pvt. Ltd.,
BOTTLING UNIT:
The parent company HCCBPL Mumbai has divided India as per
geographical boarders with specific areas allotment and named them as franchise
area. If brief, HCCBPL will control boot marketing as well as quality control
activity.
Marketing channels are the most complicated phenomena encountered in the
study of Marketing. They encompass elaborate behavioral systems that usually
involve many decisions. Markets often extend over a wide geographical area.
East Godavari has been divided into 36 depots of Coca-Cola soft drinks. In
each area, the company has identified certain high volume outlets selling their soft
80
drinks in Theatres, Pan Shops, Hotels, Restaurants, Departmental Stores,
Sweet Shops etc.,
Each area has been divided into different routes and each route is appointed
with a sales man and a driver. Each salesman sells the given quantity of soft drinks
everyday with the help of two loaders. Each of the area is under the control of an in
order to promote sales and smoothen the distribution. All the supervisors are
responsible to the sales manager for their performance.
The marketing territory of the company has 3 districts. In these districts 70
wholesalers have been appointed to distorting “Coke” uninterruptedly in the market.
But distribution of bottled soft drinks is not an easy task. It needs proper planning,
resources and controlling.
Packing of product is of utmost importance in the sale of soft drinks. So, the
need for “Extensive” distribution of product, with as many retail outlets as possible,
is the key to become a market and grab more share of the market.
Secondly, the other type of distribution is “Intensive” and as the very world
signifies certain typical outlets are totally purchased for maintaining only brand ie.,
Coke without any competition. This is mostly followed in theatres, parlors, Bus
complexes, Restaurants wherever it is possible as a monopoly countries for which an
additional margin is allowed by the company to the outlet through the dealer as
81
compensation. The need for effective physical distribution is more so important in
bottled soft drinks because every minute in the business counts.
In other words, if a day lost for lack of stock means loss of more than two
days business. Sale of soft drinks is something unique and the demand changes
depending on seasonally and temperatures.
Hence the need to maintain a systematic operational system is more
important in soft drinks business. A well-trained and experienced sales person
should visit the retail outlets everyday. This kind of continuous report with retailers
and feed back to the unit is greatly helpful of emptied bottles in time.
AGENCY ACTIVITY:
Agency Activity comprises the effectiveness of whole sale dealer in terms of
his personal relation with retailers, effective distribution at the areas allotted
maintaining sufficient funds to organize the agency, his relation with the field staff,
capability in giving the market information and counter activity against competitors.
Periodical reviews are made by the field staff to evaluate the agency activity
and recommendations are made depending on the necessity to develop the agency.
To motivate the agency towards sales and various types of incentive other than
regular, commission are offered as detailed below.
1. Quarterly commission on achieving the target.
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2. Additional commission for possessing mechanized distribution input.
3. Incentive on achieving the inputs target.
4. Subsidy on ark confession of mechanized vehicles.
5. Dealers of the district award to create complexity spirit among the agency.
1. BRANDS DEALING IN THE OUTLET
Company Brands
Coca Cola 5.95
Pepsi 4.50
Table no: 5.1
BRANDS DEALING IN THE OUTLET
7
5.95
6
5 4.5
BRANDS
4
3
2
1
0
COKE PEPSI
COMPANY
Chart no: 5.1
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Interpretation:
The above table and graph shows that Out of 100 respondents, outlets which
I surveyed in the Amalapuram Division Market 5.95 Brands of Coca – Cola and 4.5
Brand of Pepsi are found in the retail outlets out of 7 brands. Finally majority of
respondents are strongly agreed with above statement.
2. Do you have Supply In Time?
No of
Sc no Choice Respondenis Percentage
1 Yes 75 75%
2 No 25 25%
Total 100% 100%

Table no:5.2
Number of respondents
No
25%
Yes
75%
Chart no: 5.2
Interpretation:
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The Above Table and Graph Shows that out of 100 Respondents, 75
Respondents Are strongly Agree in With the Above Statement 25 Respondents are
agree With the no, Finally Majority of Respondents Are Strangely Agree With
Above Statement.
3. Promotional Activates Offered By Which Company is Good ?
No of
Respondent
Sc no Choice s Percentage
1 Coco-Cola 55 55%
2 Pepsi 45 45%
Total 100 100%

Table no:5.3
Pepsi
45%
Coco-
Cola
55%
Chart no:5.3
85
Interpretation:
The Above Table and Graph Shows that out of 100 Respondents, 55
Respondents Are strongly Agree in With the coca-cola, 25 Respondents are agree
With the Pepsi, Finally Majority of Respondents Are Strangely Agree With Coca-
cola.
4. Top brands consumed by the outlet For the Coca -Cola?
No of
Sc no Choice Respondents Percentage
1 Maaza 45 45%
2 Sprite 42 42%
3 Kinly 13 13%
Total 100 100%

Table no:5.4
50%
40%
Percentage
30%
20% 45% 42%
10%
13%
0%
Maaza Sprite Kinly
Choice
Chart no: 5.4
Interpretation:
86
The above Table And Graph Shows That Out Of 100 Respondents, 45
respondents Are strongly Agreeing With The Maaza , 42 Respondents Are Agree
with The Sprite And 13 Respondents Are Agree With The Kinly Finally Majority Of
Respondents Are Strongly Agree With Above Statement.
5. Top brands consumed by the out let for Pepsi?
No of
sc no Choice Respondents percentage
1 Slice 42 42%
2 7Up 47 47%
3 Aquafine 11 11%
Total 100 100%

Table no: 5.5
50% 47%
42%
40%
30%
20%
11%
10%
0%
Slice 7Up Aquafine
Chart no: 5.5
Interpretation:
87
The above table and graph shows that out of 100 Respondents,47
respondents are strongly agreeing with the 7Up,42 respondents are agreeing with the
Slice ,11 respondents are agree with the Aquafine. Finally majority of respondents
are strongly agreed with above statement.
6. TOTAL DAILY SALES OF AN OUTLET
Table No 5.6
Company Sales
in
Crates
Coca Cola 2.45
1.03
3
2.45
SALES IN CRATES
2.5
1.5
1.03
1
0.5
0
Coke Pepsi
COMPANY
Pepsi
Chart no:5.6
Interpretation :
88
The above table and graph shows that Out of 100 respondents, which I
surveyed in the Amalapuram Market Division there are 2.45 crates of Coca Cola
and 1.03 crates of Pepsi drinks are averagely consumed. Finally majority of
respondents are agree with above statement.
7. Which company gives you the maximum benefits in the customer?
No of
S. no Choice Respondents percentage
1 coca-cola 37 37%
2 Pepsi 32 32%
3 both 31 31%
Total 100 100%

Table no:5.7
percentage
both
coca-cola
31%
37%
Pepsi
32%
89
Chart no:5.7
Interpretation:
The above table and graph shows that out of 100 respondents, 37
Respondents are strongly agreeing with the coca-cola,32 Respondents are agree with
the Both. Finally majority of respondents are strongly agree with above statement.
8. Fast moving brands in the outlet?
Company No of Percentage
respondents %
coca-cola 69 69%
Pepsi 31 31%
Total 100 100%
Table no:5.8
80%
Percentage %
60%
40%
69%
20% 31%
0%
coca-cola Pepsi
Company
Chart no:5.8
Interpretation:
90
respondents are strongly agreeing with the Coca-cola,31 Respondents are agreeing
with the Pepsi. Finally majority of the respondents are strongly agree with above
statement.
9. Which reasons to sale in coca-cola?
No of
Respondent
S. no Reasons s percentage
1 Brand image 21 21%
2 Quality 26 19%
3 Quantity 19 26%
4 All 34 34%
Total 100 100%

Table no: 5.9
Reasons for sale
Brand
image
All 21%
34%
Quality
19%
Quantity
26%
91
Chart no:5.9
Interpretation:
The above table and graph shows that of 100 Respondents,34 Respondents
are strongly agreeing with the All ,26 respondents are agreeing with the Quantity, 21
respondents are agreeing with the Brand image and 19 respondents are Agree with
the quality. Finally majority of respondents are strongly agree with above statement
10. After sale services provide by the company?
No of
S. no Reasons Respondents percentage
1 Good 35 35%
2 Bad 19 19%
3 average 46 46%
Total 100 100%

Table no: 5.10
G ood
average 35%
46%
B ad
19%
Chart no: 5.10
92
Interpretation:
The above table and graph shows that out of 100 Respondents, 46
respondents are strongly agreeing with the Average, 35 respondents are agreeing
with the Good and 19 Respondents are agree with the Bad. Finally majority of
respondents are strongly agree with above statement.
11.what is the main source of information regarding the soft drinks?
No of
Respondent
S. no Reasons s percentage
1 TV 38 38%
2 Radio 8 8%
3 News paper 29 29%
4 Promotional program's 25 25%
Total 100 100%

Table no:5.11
Promotion
al
program's
25%
TV
38%
News
Radio
paper
8%
29%
93
Chart no:5.11
Interpretation:
The above table and graph shows that out of 100 respondents,38 respondents
are strongly agree with the TV, 29 respondents are agreeing with the News paper,25
Respondents are agreeing with the promotional program’s and 8 Respondents are
agree with the Radio. Finally majority of respondents are strongly agree with above
statement.
12.Whether the advertisement of the company help to promoted the sales?
No of
S. no Reasons Respondents percentage
1 Yes 89 89%
2 No 11 11%
total 100 100%
Table no:5.12
No
11%
Yes
89%
Chart no: 5.12
Interpretation:
94
Respondents are strongly agreeing with the Yes and 11 Respondents are agreeing
with the No. Finally majority of respondents are strongly agree with above
statement.
13.Duration of sales supervisor visit your shop?
S. no Reasons No of Respondents percentage
1 weekly 45 45%
2 15 days f 38 38%
3 month 17 17%
Total 100 100%

Table no:5.13
month
17%
weekly
45%
15 days f
38%
Chart no:5.13
Interpretation:
95
Respondents are strongly agreeing with the Weekly,38 Respondents are agreeing
with the 15 days in a month and 17 Respondents are agree with the Month. Finally
majority of respondents are strongly agreed with above statement.
14.Trade schemes offered by which company are good?
1 coca-cola 31 31%
2 pepsi 28 28%
3 Both 41 41%
Total 100 100%

Table no:5.14
coca-cola
Both 31%
41%
pepsi
28%
Chart no:5.14
96
Interpretation:
Respondents are strongly agreeing with the Both of the products, 31 respondents are
agreeing with the Coca-cola and 28 respondents are agree with the Pepsi. Finally
majority of respondents are strongly agreed with above statement.
15.Are you satisfy with the present distribution system?
1 Yes 83 83%
2 No 17 17%
Total 100 100%

Table no:5.15
90%
80%
70%
60%
50%
40% Yes, 83%
30%
20%
10% No, 17%
0%
Yes No
Chart no:5.15
Interpretation:
97
The above table and graph shows that out of 100 Respondents, 83
Respondents are strongly agreeing with the Yes,17 Respondents are agree with the
NO. Finally majority of respondents are strongly agree with above statement.
16.Are they charging the same price for the same dealers?
1 Yes 67 63%
2 No 33 33%
Total 100 100%

Table no:5.16
No
34%
Yes
66%
Chart no:5.16
98
Interpretation:
Respondents are strongly agreeing with the Yes and 34 Respondents are agreeing
with the NO. Finally majority of respondents are strongly agree with above
statement.
17.Do you face any market problem regarding Coca-cola company?
1 Yes 42 42%
2 No 58 58%
Total 100 100%

Table no:5.17
Yes
42%
No
58%
99
Chart no:5.17
Interpretation:
respondents are strongly agreeing with the No and 42 Respondents are agreeing with
the Yes. Finally majority of respondents are strongly agree with above statement.
18. After sales providing the service?
1 very good 15 15%
2 Good 24 24%
3 satisfactory 61 61%
Total 100 100%
Table no:5.18
very good
15%
satisfacto Good
ry 24%
61%
Chart no:5.18
100
Interpretation:
The above table and graph and shows that out of 100 Respondents,61
Respondents are strongly agreeing with the Satisfactory,24 Respondents are
agreeing with the Good and 15 respondents are agree with the very good. Finally
majority of respondents are strongly agree with above statement.
FINDINGS FROM THE STUDY
AMONG 100 RETAILERS RESPONDS:
 Most of the retailers complained that promotional schemes were being
communicated to them in the last minute of time.
 Most of the retailers complained about non-availability or some flavors.
 Service to Rural Areas most of the distributors are servicing enough to rural
market demand and the schemes are not communicating properly in rural
areas.
 Most of the respondents are satisfies with the sales promotion of Coca Cola
Company.
 Consumers are rating the Coca Cola as better choice and they are giving
more priority to these products rather than the competitive products.
 The performance of the company Representative is not satisfactory mode in
solving the Retailers problem and delay in work.
 The company is not providing more point of purchase material including
Visi Coolers, banners, glow sign boards etc.,
101
 Customers said Pepsi Company is giving offers, Coca-Cola company is not
giving offers.
SUGGESTIONS FOR THE STUDY
 Company Top Management should insist that the distribution work should be
assigned who covers a fixed number of retail outlets daily to each sales man.
 The Company Management should reduce the number of retail outlets what a
single sales person covers during a day. At present this figure is 250, this
should be reduced to around 200 in order to make the sales person to spend
more time with the retailers.
 Distributors may be invited for meeting and given some trainings regarding
marketing of Coke products and to maintain better relationships with
management or customer.
 The company may also reconsider their Sales Promotion Activities to future
increase Retailers Satisfaction.
 The company may expedite the taking of orders and ensure on-time delivery.
102
 During Peak Season for soft drinks, the distributors are not meeting the
demand of retailers due to non-availability of stock. So company should try
to provide the sufficient stock in peak seasons.
 Most of the retailers complained about non-availability or some flavors.
Retailers are feelings this would reduce their outlets image. So, company
should send all flavors to every distributor.
 Most of the retailers complained that promotional schemes were being
communicated to them in the last minute of time.
 Company management should bring pressure on distributors to maintain
stock to their carrying capacity. So that it matches with the expected demand
in peak season.
103
CONCLUSION FOR THE STUDY
Here the respondent presents the conclusion for the research made. The goal
of this research was to study the Sales Comaprision and Sales Promotion systems
and practices on today’s organizational Promotional strategies endeavor; Sales
Comparison has been a key element of the modern marketing in recent years. All
around the world companies in different sizes have been trying to utilize On the
other hand because of vigorous competition not only acquiring new customers is
becoming difficult but also holding existing customers is a quite challenging task
During our research we learned that it is a lot cheaper to keep existing
customer in level that constantly encourage them to stay with a company is a
dynamic and meticulous job. That is why computerized Sales comparison system
can play a critical role in success of a company. But the way that Sales Comaprision
systems are used can make substantial different on the out come. Along with sales
and marketing. A new emerging approach that recently has been attracting
corporations is customer value management. Their goal is to identify value that can
be delivered to the customer along with their products through their supportive
processes and services.
104
For a successful relationship it is up to the company to perform customer’s
profitability analysis. As a result this analysis, if a customer is not doing well with
presented products or services, there is an opportunity for us to find a better solution
for that customer before loosing it to competitors.
One of the other important facts I learned in this research was; a fundamental
principle of Sales Promotional activities are that all customers are not same. Another
words, it is not possible to attract and retain all customers with the same policy and
treatment. And also I found that SRI SARVARAYA SUGARS has been providing
proper promotional strategies in order to retain them for a long period.
Another important issue of my research was SRI SARVARAYA SUGARS
was giving freedom for customer to check the products quality of what they want.
And also I found that there was a delay in loading process and also compliant
resolution process was taking much time.
105
SRI SARVARAYA SUGARS LIMITED
BOTTLING UNIT – VEMAGIRI
QUESTIONAIRE FOR THE COMPARISION OF SALES AND SALES
PROMOTIONAL STRATEGIES
1.Personal details
i. NAME OF THE PERSON:
ii. AGE:
iii. AGENCY NAME (OR) SHOPE NAME:
iv. PLACE:
v. CODE:
vi. MANDAL:
2. Brands dealing in the out-let.
a) Coca-Cola b) Pepsi c) Artos d) All .
3. Do you have supply in time?
a) Yes b) No
4. Promotional activities offered by which company is good?.
106
a) Coca-Cola b) Pepsi.
5. Top brands consumed by the outlet for the coca-cola?
a) Maaza b) Sprite c) Kinly
6. Top brands consumed by the outlet for pepsi ?
a) Slice b) 7up c) Aquafine
7. Total daily sales of an outlet in crates.
8. Which company gives you the maximum benefits in the customer?
a) Coca-Cola b) Pepsi. c) Both.
9. Fast moving brand in the outlet.
10. Which reason to sale in Coca-cola?
a) Brand image b) Quality c) Quantity d) All.
11. After sale services provide by the company.
a) Good b) Bad c) Average.
12. What is the main source of information regarding the soft drinks?
a) TV b) Radio c) News paper d) Promotional program’s
13. Whether the advertisement of the company help to promoted the sales.
a) Yes b) No
14. Duration of sales supervisor visit your shop?
a) Weekly b) 15days in a month c) Monthly.
15. Trade schemes offered by which company is good?
a) Coca-Cola b) Pepsi. c) Both.
16. Are you satisfy with the present distribution system?
107
a) Yes b) No
17. Are they charging the same price for the same dealers?
a)yes b) no
18. Do you face any market problems regarding Coca-Cola Company?
a)yes b) no
19.After sales providing the service?
a)very good b)good c)satisfactory
20. Any suggestions for improving the system in Coca-Cola Company?
Signature of the Dealer or Customer
Thank You Sir for your immediate response
108
BIBLIOGRAPHY
Text Books
 Marketing Management : V.S.Ramaswamy, S.namakumari
 Marketing Management : Philip Kotler
 Sales and Distribution : Dr.S.L Gupthn
 Marketing, theory and practices : Adrian Palmer
 Fundamentals of Marketing : Stanton W.J.
 Fundamentals of Selling : Charles M Futrell
 Marketing Research : G.C. Beri
 Research Methodology : C.R. Kothari
Web Sites:
 www.coca-cola.com
 www.wikipedia.com
 www.scribd.com
109
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Marketing Mix, Sales Promotion & Soft Drink Industry History

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Marketing Mix, Sales Promotion & Soft Drink Industry History

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INTRODUCTION

ABOUT THE TOPIC

Marketing is typically seen as the task of “creating, promoting &

markets. The sales comparison and sales promotion

Marketing is indeed an ancient art it has been practiced in on from or the

“Marketing is the process of planning and executing the conception, pricing,

satisfy individual and organizational goals”.

-American marketing association

“ --- an organizational function and a set of process for creating

communicating, and delivering value to customers and for managing customer

--- Philip Kotler

“… The on going process or moving people closer to marketing a decision to

complacent to some one else’s products services or values. Simply, if it doesn’t

facilitate a “sale” then it’s not marketing.

“The thing process of anticipating, identifying and satisfying customer

requirements profitably” chartered Institute of marketing.

-----Chartered Institute of Marketing.

The sales comparison is one of the three major groupings of valuation

appraisal. This approach compares a subject property's characteristics with those of

according to the presence, absence, or degree of characteristics which influence

of the various components which contribute utility.

management, sales display means “arranging systematically saleable goods so as to

Sales promotion is another important component of the marketing

communication mix. It is essentially a direct and immediate inducement. It adds

The committee on definition of the American marketing association

defines sales promotion as follows.

them effective, such as displays, shows , demonstrations and other non-recurrent

selling efforts not in the ordinary routine.

manufactured on a large scale. Joseph Hawkins has invented a Machine and

has lead to the enormous increase in the Soft Drink Market.

been pursuing market oriented economic policies.

(Exports) Pvt. Ltd., Mumbai in the year 1949.

industry with in a short period.

It has 22 plants operated in 13 stages through 2, 00,000 retail outlets.

In 1971 sales touched Rs.637.78 lachs yielding profits of Rs.51.37 lachs

reached to stage. With Pepsi foods entering the Indian Market.

Andhra Pradesh. In April 1991 the Districts of Chandrapur and Gatcheroli in

Sugars Limited, Bottling Unit, Vemagiri, was situated at Vemagiri on National

Highway No.5 which is about 10 Kms. From Rajahmundry. It manufactures aerated

about 12,000 crates per day.

built in the premises.

Germany. By the end of July, 1995, the production was started.

mechanize to the possible extent.

organization with class links to the parent company HCCBPL.

AP are 135 Lachs creates.

management, sales display means “arranging systematically saleable goods so as to

Sales promotion is another important component of the marketing

communication mix. It is essentially a direct and immediate inducement. It adds

The committee on definition of the American marketing association

defines sales promotion as follows.

• To know the sales promotion efficiency of dealers or S.S.S. Ltd., Bottling

Unit, Vemagiri and S.S.S. Ltd., B.U.

• To make extensive study on the existing sales promotion

Sri sarvaraya sugars bottling

• To acquire the information regarding of the practical of the organization

• To know the various factors affecting the sale of the product.

• To give information regarding after sales service of a product.

The modern world emphasizes an purposeful learning experience under

such circumstances a project can be defined as “a purposefully dedicated effort in

exposure and the real working environment.

After a vivid knowledge of management theories and practice it becomes

very essential practical implementation of everything learned. So in order to meat