HIGHER NATIONAL CERTIFICATE IN BUSINESS

GAYATRI VIDYA PARISHAD ASSIGNMENT BRIEF

QUALIFICATION: B.TECH HNC BUSINESS UNIT NO AND TITLE: UNIT 4- MARKETING PRINCIPLES STUDENT NAME: __AKHIL MADEM______________________________ ASSESSOR NAME: SWATI RAGHUPATRUNI DATE ISSUED: ___________DEADLINE:__________SUBMITTED ON 21 JUNE

ASSIGNMENT TITLE:

INDIAN COLA-EXPANSION OF THE

COMPANY

Report on Indian Cola

THE INDIAN COLA THE EXPANSION OF THE COMPANY

An Assignment by M.AKHIL

STUDENT DECLARATION
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

Akhil madem

21 June

Student signature

Date

Table of Contents
INTRODUCTION ....................................................................................................................................... 4 ABSTRACT................................................................................................................................................ 4 MAIN TEXT .............................................................................................................................................. 4 Sustaining advantage .......................................................................................................................... 4 Distribution of Our product ................................................................................................................ 5 Pricing of our product ......................................................................................................................... 6 Promotional Activity ........................................................................................................................... 6 Retailers .......................................................................................................................................... 6 Consumers ...................................................................................................................................... 6 Consumer Promotional Activity ...................................................................................................... 7 SWOT ANALYSIS ...................................................................................................................................... 7 Strengths ............................................................................................................................................. 7 Weaknesses ........................................................................................................................................ 8 Opportunities ...................................................................................................................................... 8 Threats ................................................................................................................................................ 8 4Ps: ......................................................................................................................................................... 8 Product ................................................................................................................................................ 8 Price .................................................................................................................................................... 8 Place .................................................................................................................................................... 8 Promotion ........................................................................................................................................... 9 Extension to 7Ps ..................................................................................................................................... 9 FINDINGS:................................................................................................................................................ 9

INTRODUCTION:
The board has decided to expand our business in the Southern state of Kerala. To sustain and evolve there, we have to develop the marketing strategies according to the market there. To sustain the competitive the advantage, we may have to re-price the product to reflect the objective of our Company. Basing on the competitors prices there we will adjust accordingly.

ABSTRACT:
Distribution chain is modified Price of our product is less than the price of our competitors to gain the market Introduction of new products into the already existing North Indian market Efficient promotional activity.

MAIN TEXT:
Our primary objective while entering the new market in a new place is to sustain the competitive advantage of the existing firms. In order to do so, our products quality, and our marketing plan and marketing strategy should be efficient than our competitors plans and strategies.

Sustaining advantage:
To obtain a competitive advantage than others we should offer more of our product for less they pay in retail. i.e., we should price our product at a lower cost in the few initial days or may be a year for gaining consumers. Then, we can raise or equal our price with our competitors price. And we have to tie up with few branded general stores in the major cities of Kerala like Calicut, Thiruvananthapuram, Ernakulum, Cochin.etc, and offer a free trail pack of 100 ml for the consumers who have shopped in their store over a limit that the store owners decide. After the time period of one year, we can increase our price to our competitors price or we may even increase the price depending on the reviews and responses of the consumers in this year. And we can introduce new price-off packs like party packs etc, At the same time of introduction of our Cola beverage into the Kerala market. In our North Indian market, we launch new beverages. As Ive thought their names are going to be Orangee and Applee in relatively smaller scale. This makes the customers of South India think that our brand is a well established and trusted one in North India. And the North Indian market feels confident of our product and that their

investments are worthy. This would surely develop and increase our sales in North as well as in South India.

Distribution of Our product:

The sequence shows our new product distribution in Kerala. Since, we have only one manufacturing unit in the South India, I have designed a new plan to implement.

COMPANY

STATE WHOLESALER

DISTRICT WHOLESALER

MANDAL WHOLESALER

REATILERS

CUSTOMERS

Since our company has gained popularity in North Indias market and was well responsive with multiple manufacture units, In Kerala, we have to keep up the same spirit. Till now, In North India, we have been delivering the product to two or three major distribution centers around the nearest manufacturing units. But now we are planning to deliver it to the every constituency or mandal, the main town as divided by the Election Commission of India. We arrange logistics till we place our product in the hands of the State Wholesaler. And we contribute a little of our logistics to a few districts. From the place, it is his own duty to supply to the retailers with his own logistics.

And we announce a bid in the district Headquarters of each district, for the highest bidder we give our dealership. For making ourselves to the district wholesaler we have the cost of Rs.5 per each 200ml bottle, which gives the mandal Wholesaler and the Retailers a left-off price of Rs.3. This would make effective distribution of the product even to the tiniest tribal part in the state.

Pricing of our product:

To gain the market, our pricing strategy should be different and unique in the industry. We should concentrate on the market capture than the profit. So, our price of the product should be less than the same product of our competitors. In Kerala, the price of 300ml Coke is Rs.15. So, our products cost is Rs.10 and we have an advantage of our technology. So our companys objective of giving more of the product for the less is show-cased clearly.

Promotional Activity:
Whatever makes up our companys fame in Retailer market and at the consumers, which we make are the promotional activities. The objectives to be followed to promote ourselves at the retailers and consumers are different. We can use consumer strategies that are intended for consumer to the retailers but not vice versa.
Retailers: As cited in the journal of Marketing Research 43(November 2006):518-36 in the

article Promotion for a retailer: The role of promotion, Brand, Category, and store characters by Kusum. L. Ailawadi, Bari. A. Harlam, Jacques Caesar and David Trounce, Retailer promotions include Price Cuts Feature Advertising Retailer coupons Retailer Premiums

Consumers: Generally, there are many types of Promotion strategies. Of them few are

explained below.
Advertising: Non-personal communication, through mass media. Publicity: Free promotion through news stories n news papers and magazines, TVs

reviews.
Personal selling: This is door to door selling which is not practically possible in case of our

beverages.

ADVERTISING

PERSONAL sELLING

PROMOTION

PUBLICITY

SALES PROMOTION

Consumer Promotional Activity: The sales promotion is the key ingredient in marketing

campaigns. It consists of a collection of incentive tools, mostly short term and may be long term, designed to stimulate quicker or greater purchase of particular products or services by consumers. Sales promotion tools always vary in their specific objectives. The activity depends on the market segmentation. For example, to influence the kids about our product, well have t choose such a thing, like advertising in the cartoon channels which are locally famous. To allow the elders know about our product, we have to advertise in the news channels with high state TRP. Blattberg and Neslin in their book say that The rapid growth of sales promotion created clutter. Incessant prices off, coupons, deals and premiums may devalue the product in buyers minds. So there is risk in putting a well known brand on promotion over 30% of the capital. Since we are gaining, we invest up to 35% in the capital for the promotional activity, for 2-3 years in the state. After that we can reduce the percentage of investment in the promotional activity. We use famous TV models in the state to promote our company. This would not only reduce the cost on comparison with using celebrities all over India. We can also make a cheaper promotion in the social networking sites. To make advertisements to the TV, we choose a better and efficient add agency to design a new and trendy advertisement. The advertisement concept remains same and the model in the add changes from state to state and it shall be telecasted in all locally famous channels.

SWOT ANALYSIS:
Strengths:

Best taste of original Cola flavor Cheaper than other caffeinated products Best distribution chain for consumers and also with respect to the firm Network is own Good retail market in North India which would influence sales in South India.

Weaknesses:

Introduced recently into the market Highly efficient and powerful competitors like Coca Cola and Pepsi Co, Launching of only one type of drink.

Opportunities:

Threats:

No private cola making firms in Kerala. Expensive competitors products

Evolution of a new company

The market mix for the two segments we considered is explained below, and the segments are:

Age: Our drink may be harmful for children below the age of 7 because of the caffeine in it.
This is preferred by the teens and young people below the age of 60. And our product is not preferred by Polyols due to Aspartame in it.

Gender: Since the traditional cola flavor was carbonated and sold, it is mainly preferred by
the males than the females. And the market mix for them is explained as

4Ps:
Product: For the two segments, the product we offer is the same cola beverage in different
packs ranging from 200ml to 600ml.

Price: The price of our cola beverage changes with its volume. But the price is same for all
the people, for the selected volume of Cola.

Place: Our Cola is available at all the retail stores from a general store to the large retail
marts. All the volumes of our product are available as per the customers choice.

Promotion: As stated in the promotional strategies above.

Extension to 7Ps: The shift to 7Ps has been explained in the segmentation criteria, and
the distribution of our product. The product is explained as the physical evidence.

FINDINGS:
Poor distribution chain will be the reason for poor marketing of the product Not only the customers, but the whole sellers in between should also be taken care of with the help of holistic marketing