Professional Documents
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Coca-Cola, the corporation nourishing the global community with the world¶s largest selling soft
drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new
thumbs up to the Indian soft drink market. In the same year, the Company took over ownership
of the nation¶s top soft-drink brand and bottling network. It¶s no wonder our brands have
assumed an iconic status in the minds of the world¶s consumers.
Ever since, Coca-Cola India has made significant investments to build and continually
consolidate its business in the country, including new production facilities, waste water treatment
plants, distribution systems, and marketing channels.
Coca-Cola India is among the country¶s top international investors, having invested more than
US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003
for its operations.
The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the
pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has
also been instrumental in giving an exponential growth to the country¶s job listings.
With virtually all the goods and services required to produce and market Coca-Cola being made
in India, the business system of the Company directly employs approximately 6,000 people, and
indirectly creates employment for more than 125,000 people in related industries through its vast
procurement, supply, and distribution system.
The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with
another 25 being owned by franchisees. That apart, a network of 21 contract packers
manufacture a range of products for the Company.
On the distribution front, 10-tonne trucks ± open bay three-wheelers that can navigate the narrow
alleyways of Indian cities ± constantly keep our brands available in every nook and corner of the
country¶s remotest areas.
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Sales promotion is any initiative undertaken by an organisation to promote an increase in sales,
usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of
the marketing communications or promotions mix). Sales promotions are varied.
Often they are original and creative, and hence a comprehensive list of all available techniques is
virtually impossible (since original sales promotions are launched daily!). Here are some
examples of popular sales promotions activities:
(c) "/("+*- Websites and mobile phones that support a sales promotion. For example, in the
United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a consumer
would enter the code into a dynamic website to see if they had won a prize. Consumers could
also text codes via their mobile phones to the same effect.
(e) "".+1#& e.g. Subway gave away a card with six spaces for stickers with each sandwich
purchase. Once the card was full the consumer was given a free sandwich.
(f) +&0'!#"-+0"& e.g. Budget airline such as EasyJet and Ryanair, e-mail their customers
with the latest low-price deals once new flights are released, or additional destinations are
announced.
(g) 2'+!#-'('#+'!& between brands owned by a company, or with another company's brands.
For example fast food restaurants often run sales promotions where toys, relating to a specific
movie release, are given away with promoted meals.
(h) ""&*(-)"& (aka. sampling) e.g. tasting of food and drink at sampling points in
supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential
consumers at supermarkets, in high streets and at petrol stations (by a promotions team).
(k) *&"")*#"*!1*+#*" products that raise money for charities, and the less well off
farmers and producers, are becoming more popular.
Many of the examples above are focused upon consumers. Don't forget that promotions can be
aimed at wholesales and distributors as well. These are known as *" *)"&'('#+'!&.
Examples here might include joint promotions between a manufacturer and a distributor, sales
promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales
people and their retail clients
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Apafrt from this coke followed the strategy of Wc in which a special code is at the
back of the cap and which u have to message to a specific number and then there will be a lucky
draw out of it.
Then coke also followed the system of providing 6'0,"&*!0'-'!&in which the person
has to collect certain number of coupans and present it to shopkeeper in order to get the bottle of
the coke free.
Coke is also following the 2'+!# -'('#+'!&".coke is having a promotion with dominos
where u buy the DOMINOS PIZZA then the consumer gets the coke 500ml bottle free.
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through this company usually provide offer to the customer and
sending sms through the collected database.
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The various reasons for which the sales promotion being offered are as follows:
â? It helps to increase sales in a competitive market and thus, increases profits;
â? It helps to introduce new products in the market by drawing the attention of
potential customers;
â? Existing stocks can be quickly disposed off;
â? It stabilizes sales volume by keeping its customers with them. In the age of
competition it is quite much possible that a customer may change his/her mind
and try other brands. Various incentives under sales promotion schemes help to
retain the customers.
â? Consumer gets the product at a cheaper rate;
â? The consumer gets all information about the quality, features and uses of different
products;
â? Certain schemes creates confidence in the mind of customers about the quality of
goods; and
â? It helps to raise the standard of living of people. By exchanging their old items
they can use latest items available in the market. Use of such goods improves
their image in society.
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Various alternate tools that must be used by the dove are as follows:
â? 0*#0,*!/+!'11" To induce the customer to buy a particular product µscratch
and win¶ scheme is also offered. Under this scheme a customer scratch a specific marked
area on the package of the product and gets the benefit according to the message written
there. In this way customers may get some item free as mentioned on the marked area or
may avail of price-off, or sometimes visit different places on special tour arranged by the
manufacturers.
â? '(-"#+#+'!& *! +3"& In order to boost up sales in the short run certain
competitions must also be organized by the company.Itensure usage amongst first time
users.
â? ""#+*)& Free trails must also be used by the firm to increase their sales.
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The impact of sales promotion tools can be understand by explaning the following points:
â? To introduce new products
â? To attract new customers and retain the existing ones
â? To maintain sales of seasonal products
â? To meet the challenge of competition.
From the above discussion we may easily conclude that sales promotion play a key role in
increasing the sales of a product. Day by day the popularity of the sales promotion is going on
increasing and the companies are using it tremendously for increasing their sales. Its popularity
is increasing because of its ability to produce immediate sales, increased customer preference for
deals and declining real product differentiation. While the significance of sales promotion is
increasing, its excessive use is determental to the growth of a brand. Too much sales promotion
can erode brand equity and make people deal prone. Thus, the companies must use the various
techniques of sales promotion effectively in order to increase their sales.