Professional Documents
Culture Documents
Submitted By:
RUCHIKA PANDEY
Asst. Professor
1510670080
SMS, Varanasi
DECLARATION
I hereby declare that all the work presented in the Summer training project report entitled
ANALYSIS OF THE FINANCIAL DISCOUNTING AND PROMOTIONAL SCHEMES
OF COCA COLA of the summer training project report topic carried out at SCHOOL OF
MANAGEMENT SCIENCES VARANASI is an authentic record of my own work carried out
under the guidance of MR. Veeresh Tripathi (Assistant Professor).
DATE: 12/06/2016
RUCHIKA PANDEY
SMS VARANASI
1510670080
ACKNOWLEDGEMENT
RUCHIKA PANDEY
1510670080
PREFACE
In summer the consumption of soft drinks is more due to hot weather in this time chilled
weather is needed everywhere and every body irrespective of age difference. In the market
peoples not only need water, but they want same taste too. Here comes the need of soft drinks: it
has become an essential part of market as people like it in addition to the bottles, now days
packages of soft drinks i.e. Tin cans. Pet packs of i.e. Litters canisters and dispensers are
introduced to enhance the impact in sales.
As an integral part as curriculum all M.B.A a participant are required to undergo practical
summer training in any industry for 6 to 8 weeks period. The main objective of this training is to
supplement theoretical knowledge with exposure to practical operator of an organization or
industry. Candidate tale much help from this training when he get the job after completed the
curriculum in this training candidate get the better opportunity to in meet the Retailer conjurer,
whale sellers dealer by which candidates gain more and more information about the market. By
this practical Experience candidate confident level is improved. Consequently we can say this
training provide better understanding of all functional areas of management skills.
TABLE OF CONTENTS
TOPIC
Introduction
The History
Company Profile
The Coca Cola Company
Bottling Operations
Organizational Structure of Coca Cola In India
The Future of Coca Cola
Marketing Strategies
Coca Cola India Marketing Strategies
Key drivers Of Coca Cola
Key Challenges Of Coca Cola
Manifesto for growth
Business Model
Brands of Coca Cola
Competitor Analysis
Objective
Research Methodology
Analysis Of Financial Discounting and Promotion Scheme of Coca
Cola
Distribution Channel Of Coca-Cola In Varanasi
Promotional Schemes To Dealers
Promotional Schemes Of Coca-Cola
Conclusion
PAGE
NO.
Findings
Recommendation
Learning
Limitation
Bibliography
EXECUTIVE SUMMARY
The project is about analyzing the discounting policies of the company and to find out any
kind of leakages in its discounting system. The loopholes in the system provide a scope of
making personal benefits for the salesmen and the distributors which become the revenue
leakages for the company. The people who are directly involved in the distribution system use
the loopholes to fetch out their own personal benefits and earn some extra money by adopting
unfair activities which are unethical. Therefore the company should be aware of the unfair
practices being done by these people and should take some appropriate action to prevent those
kinds of leakages. The company should not leave any scope for any type of misrepresentations.
Hence it is necessary for the management of the company to adapt to certain changes in their
system which will help them in minimizing the revenue leakages. In this project the primary
objective was to find out the types of misrepresentations that is being done in the distribution
system which are related to the discounting policies and suggesting some proposals to the
company by which they can improve the system and make it efficient and leave no scope for the
salesmen and distributors to indulge in any unfair activity.
In this project the major concern was to analyze whether the discount rates offered to
HVOs (High Volume Outlets) are correct or not, to find out that they are actually getting the total
amount of discount and to make an inter-comparison of the discounts given to those HVOs on
the basis of their sales volume. The proposals have been made on the basis of analysis done
which include some steps that should be taken to minimize the revenue leakages found during
the project work. The project required short listing of HVOs on the basis of maximum discount
and the amount of sales. Personal visits were required to the HVOs to get a better understanding
of the discounting policies and to analyze the discount rates given to them. The main purpose of
the project was to find out the revenue leakages and proposals should be made to minimize those
leakages. The leakages can be like if an outlet is getting a high discount in spite of having low
sales volume as compared to other outlets and if the outlets are not getting the products from the
distributors at committed discounts.
INTRODUCTION
Coca-Cola is
a carbonated soft drink sold
in stores, restaurants,
and vending machines in more than 200 countries. It is produced by The CocaCola Company of Atlanta , Georgia , and is often referred to simply as Coke.
Originally intended as a patent medicine when it was invented in the late 19th
century by John Pemberton , Coca-Cola was bought out by businessman Asa
Griggs Candler , whose marketing tactics led Coke to its dominance of the world
soft-drink market throughout the 20th century.
The company produces concentrate , which is then sold to licensed CocaCola bottlers throughout the world. The bottlers, who hold territorially exclusive
contracts with the company, produce finished product in cans and bottles from
the concentrate in combination with filtered water and sweeteners. The bottlers
then sell, distribute and merchandise Coca-Cola to retail stores and vending
machines. Such bottlers include Coca-Cola Enterprises , which is the largest
single Coca-Cola bottler in North America and Western Europe. The Coca-Cola
Company also sells concentrate for soda fountains to major restaurants and food
service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks
under the Coke brand name. The most common of these is Diet Coke , with others
including Caffeine-Free Coca-Cola , Diet Coke Caffeine-Free, Coca-Cola
Cherry , Zero, Coca, and special versions with lemon, lime or coffee.
The Coca-Cola Company believes our business has always been based on
the trust consumers everywhere place in ustrust that is earned by what we do
as a corporate citizen and by our ability to live our values as a commercial
enterprise, there is much in our world to celebrate, refresh, strengthen and
protect. Through our actions as local citizens, we strive every day to refresh the
marketplace, enrich the workplace, preserve the environment and strengthen our
communities. At the heart of our business is the trust consumers place in us.
They rightly expect that we are managing our business according to sound
ethical principles, that we are enhancing the health of our communities, and that
we are using natural resource responsible.
The Coca Cola Company started operations in India in 1993 after an
absence of 16 years. To reach India's 300 million soft-drink consumers, the
company distributes its products through over 700,000 retail outlets Coca Cola
India directly employs over 7000 workers. Over the past nine years, the
company has invested over US$ 827 million in India with over US$ 800 million
in its bottling subsidiary. Significant growth has come from Kinley, its packaged
water brand, which claims to have around 35 per cent share of the packaged
drinking water market
It is the world's favorite drink. It is the world's most valuable brand and
the most recognizable word across the world after OK. Coca-Cola has a truly
remarkable heritage.
From a humble beginning in 1886, it is now the flagship brand of the
largest manufacturer, marketer and distributor of non-alcoholic beverages in the
world.
In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies
necessitated its departure. Coca-Cola made its return to the country in 1993 and
made significant investments to ensure that the beverage is available to more
and more people, even in the remote and inaccessible parts of the nation. Coke
had entered the Indian soft drinks market way back in the 1970s.
The company was the market leader till 1977, when it had to exit the
country following policy changes regarding MNCs operating in India. Over the
next few years, a host of local brands emerged such as Campa Cola, Thumps Up,
Gold Spot and Limca etc. However, with the entry of Pepsi and Coke in the
1990s, almost the entire market went under their control.
THE HISTORY
After both of them failed to catch on, Candler set out to establish a legal
claim to Coca-Cola in late 1888, in order to force his two competitors out of the
business. Candler purchased exclusive rights to the formula from John
Pemberton, Margaret Dozier and Woolfolk Walker . However, in 1914, Dozier
came forward to claim her signature on the bill of sale had been forged, and
subsequent analysis has indicated John Pemberton's signature was most likely a
forgery as well.
In 1892 Candler incorporated a second company, The Coca-Cola Company
(the current corporation), and in 1910 Candler had the earliest records of the
company burned, further obscuring its legal origins. By the time of its 50th
anniversary, the drink had reached the status of a national icon in the USA. In
1935, it was certified kosher by Rabbi Tobias Geffen , after the company made
minor changes in the sourcing of some ingredients. Coca-Cola was sold in
bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year as well in Georgia. The Cans of
Coke first appeared in 1955. The first bottling of Coca-Cola occurred in
Vicksburg , Mississippi , at the Biedenharn Candy Company in 1891.
Its proprietor was Joseph A. Biedenharn. The original bottles were
Biedenharn bottles, very different from the much later hobble-skirt design that is
now so familiar. Asa Candler was tentative about bottling the drink, but two
entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B.
Whitehead, proposed the idea and were so persuasive that Candler signed a
contract giving them control of the procedure for only one dollar.
New Coke
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change
the formula of the drink with "New Coke". Follow-up taste tests revealed that
most consumers preferred the taste of New Coke to both Coke and Pepsi, but
Coca-Cola management was unprepared for the public's nostalgia for the old
drink, leading to a backlash . The company gave in to protests and returned to a
variation of the old formula , with high-fructose replacing cane sugar, under the
name Coca-Cola Classic on July 10, 1985.
COMPANY PROFILE
If we Indians recall our memory there was a time when one was asked for a soft drink,
the brand that comes and gave a knock on our mind was coca-cola. Coca-cola, the word most
admired trademark has maintained its special a sense of belongingness to india, which had
resulted some sort of its monopoly throughout the indian soft drink market. It has been said that
the internal environment of the industry has been greatly effected from its internal environment.
The same thing was also happen with this famous company. When the government policy were
in introduce and forced this mnc's to go outside from the india market. Hence, it was thrown out
of india in the year 1977. A lacuna was created at that time in the country's soft drinks market.
How ever after a gap of 17 years, the coca-cola has reappeared in the soft drinks market of india,
by making itself more strong and confident in this field.
In today's market, the cola's (coke, thums up, pepsi, etc.) Had a 70% share, lemon
10% and orange 20%. There appears to be a concentrated rush to bag a share in the soft drinks
market. Due to a manifold increase in the demand of soft drinks large number of company has
entered into this competitive market scenario.
In india two major companies engaged in soft drinks market are pepsi and coca-cola.
While rc cola is still a novice in the indian market, although it being the world oldest soft drinks
manufacturer. Pepsi-cola attacked coca-cola before world war-ii. Coca-cola dominated the
americans soft drinks industry. During the second world war pepsi and coke, both of them
enjoyed a huge sale. After the war the pepsi sales started to fall relatively to coke. The factors
which were responsible for the decline in pepsi sales were poor image, poor task force, poor
quality control and dull packaging.
It was a momentous day when coca-cola staged its reliance in India. Coca-cola was relaunched again in India in September 1993 at hathras near Agra, where the first bottling facility
of coca-cola in India was switched on. The Indian people welcomed the come back of their most
loved cola in the country with great enthusiasm and vigor. Coca-cola market its relaunching
acquiring 5 Parle exports ltd. In 2000, the company opened a new bottling plant at dasna in agra
distt. For the supply of 300 ml bottle and 1.5 liter bottles.
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than
reveal its formula to the Government and reduce its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in
India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16
years, with its launch in Agra. An agreement with the Parle Group gave the Company
instant ownership of the top soft drink brands of the nation. With access to 53 of Parles
plants and a well set bottling network, an excellent base for rapid introduction of the
Companys International brands was formed. The Coca-Cola Company acquired soft
drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as
these products had achieved a strong consumer base and formed a strong brand image in
Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a
part of range of products of the Coca-Cola Company.
In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry
into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the
Coca-Cola Company. However, this was based on numerous commitments and
stipulations which the Company agreed to implement in due course. One such major
commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its
shareholding in favor of resident shareholders by June 2002.
Think local, act local, is the mantra that Coca-Cola follows, with punch lines like
Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India.
This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban
India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to
the launch of the new packaging of 200 ml returnable glass bottles which were made
available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias
new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone
who touches their business should benefit, thereby inducing them to uphold these values,
enabling the Company to achieve success, recognition and loyalty worldwide.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver. Satisfaction and value to consumers through
a worldwide system of superior brands and services, thus increasing brand equity on a
global basis. They aim at managing their business well with people who are strongly
committed to the Company values and culture and providing an appropriately controlled
environment, to meet business goals and objectives. The associates of this Company
jointly take responsibility to ensure compliance with the framework of policies and
protect the Companys assets and resources whilst limiting business risks.
The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its reentry into India. The company will be investing another USD 5 Billion till the year 2020.
The Coca-Cola system in India directly employs over 25,000 people including those on
contract.
BOTTLING OPERATIONS
Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed that
Coca-Cola became the world-famous brand it is today. The Coca-Cola bottling system grew up
with roots deeply planted in local communities. This heritage serves the Company well today as
consumers seek brands that honor local identity and the distinctiveness of local markets. As was
true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and
communities are the foundation on which the entire business grows.
As part of the bottling investments group of the coca cola company HCCBPL has 24
bottling plants as strategic locations in various states spread across India. We cover
approximately 65% of bottling operations for the coca cola system in India. Coca cola bottles
over the years are:
Soft drinks business in a nutshell basically follows two kind of bottling operations as per
the requirement and necessity. When a company wants to start a bottling operation in a particular
geographical area they have to look into many factors that justify this huge investment in a
bottling plant. At the start of the operations, company has two alternatives which can be taken.
The two kinds of bottling operations are.
While dong business overseas offers Coke wonderful growth opportunities it also has its
own disadvantages. The economic slowdown in various overseas markets and the strong dollar
had their impact on Coca-Cola revenues and bottom line in 1999. But the company optimistic
about the future.
Mc-Douglas Investor, The Chief Executive Officer of the Coca-Cola Company says, "This
past year 1999 has been a challenging period for the Coca-Cola Company as economic
environment became more uncertain in the later part of 1999, we strongly believe that our
fundamental opportunities for long term growth have not changed".
As long as maximization of share holder wealth remain coke's focus for its future4 is
assured Goizueta had stated and proven to the world that focus on shareholder wealth does more
good to the company than focus on revenues and it is not hat coke does not enjoy volumes for it
is world's No. 1 soft drink manufacture. It is not content with this title and is aiming at higher
volumes year after year. Surely coke will continue to grow. Point on Roberto had reduced the
company basically to its trademark and the returns are so astronomical as to be off the boards. It
just absolutely added a jet engine to their performance.
MARKETING STRATEGIES
The coca cola company is known for its marketing expertise and the company has always
followed a great marketing strategy that is responsible for bringing the success to the company
for over a century.
COCA COLA Global Strategy: Using this coca cola maintains the strong global brand while
introducing the local elements in the marketing to make sure that the product image is in
harmony with local culture.
Example: non alcoholics drinks, regional concern.
New Product Introduction: Coca cola follows out to in approach while developing new
products. Coca cola has always preferred taking note of customer preference and designing its
products according to them, instead of taking an internal approach.
Other Strategies by launching campaigns:
In March 2013, Coca-Cola set out to break down barriers and create a simple moment of
connection between two nations -- India and Pakistan. The initiative "Small World
Machines" provided a live station for breaking the barriers between india and Pakistan.
Published on Jun 5, 2014 , What if there were a new, fun way to pay for a Coke? And
what if you could do it with your energy? That's exactly what happened when Coca-Cola
launched the Happy Cycle and invited people to ride a whimsical bike and trade their
calories for a Coke. It's the latest delightful example of Coca-Cola's worldwide stunts that
bring people and happiness together. Which begs the question: "Where will happiness
strike next?"
SPONSERSHIPS
As a first step towards catching the attention of the youth, coke signed on cricket heros
Saurav Gaungly and Javagal Srinath. It slowly started talking about youth passions like
cricket, films, festivals and food. Soon the advertisements started giving the message, Eat
Cricket, Sleep Cricket, Drink only Coca Cola and now it has started modifying film hits to
frame catch lines that appeal to the youth. This particular strategy has worked well for coke.
In Philippines
Tigers.
The company sponsors the hit Fox singing competition in American idol.
SLOGANS HISTORY
First
SLOGANS STRATEGIES
Changes with the occasion . to make people feel connected, that they are with us.
Two decades old Brand Coca Cola India advertising journey has been full of innovation
and creativity. Coca Cola India made a consistent effort on its part to align its product with the
Indian culture and traditions.
The earliest of the ad campaigns shows the brand positioning itself as a relaxing drink,
fihting of the hot weather and humidity of Indian weathers. Year 2003, the fun loving Thanda
Matlab Coca Cola ad where the iconic star Amir Khan was presented in 6 different looks,
working on the simple philosophy of highlighting how Indians related to the brand as cool relief.
Word Thanda in India has different meaning like cool, cold or refreshing. If you meant
refreshment you meant coca cola.
Bollywood stars endorsing the brand include Karishma Kapoor, Aamir Khan, Hrithik Roshan
and Aishwarya Rai among others post 2003, next 5 year witnessed Cola War with rivals Pepsi
and Coke is launching an aggressive marketing campaign against each other.In total Coca Cola
roped in 15 celebrities against 8 of Pepsi.
In 2013, newcomers like Alia Bhatt, Varun Dhawan, and Siddhath Malhotra are endorsing the
brand brand. They are making people crazy by their ad Haan Haan Main Crazy Hoon under
their tag Open Happiness.
Winning culture
live our values
Obesity
Water Scarcity
Evolving Consumer Preference
Increased Competition and Capabilities
Product Safety and Quality Concerns
MISSION
VISION
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brand that anticipate and
satisfy peoples desires and needs.
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
VALUES
The values that the employees in the Company are expected to keep up to and work by
regularly are as follows:
LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy
and zeal, to deliver outstanding results.
INNOVATION: To continuously strive for progress and reach the next level of
excellence in everything we do.
PASSION: To be deeply committed and display drive and energy in the quest to deliver
outstanding performance.
TEAMWORK: To unite for greater strength and work collectively as a group towards
the achievement of common goals.
OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the
lowest appropriate level.
BUSINESS MODEL
Concentrates
Syrups
COBO
FOBO
COLA SECTION:
COCA COLA
In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated
its departure. Coca-Cola made its return to the country in 1993 and made significant investments
to ensure that the beverage is available to more and more people, even in the remote and
inaccessible parts of the nation.
Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very
popular and had entered the youth's vocabulary. In 2002, Coca-Cola launched the campaign
"Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it India's favorite softdrink brand. In 2003, Coke was available for just Rs. 5 across the country and this pricing
initiative together with improved distribution ensured that all the brands in the portfolio grew
leaps and bounds.In 2012 Coca-Cola launched the campaign Open Happines.
Packs
Price
200ml
10
300ml
16
400ml
20
600ml
34
750ml
35
1.75ml
55
2.25ml
80
THUMS UP
It is a leading sparkling soft drink and most trusted brand in India. Originally introduced
in 1977, Thums Up was acquired by the Coca-Cola Company in 1993. Thums Up is known for
its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand
clearly seeks to separate the men from the boys.
ORANGE SECTION:
FANTA
Internationally, Fanta - The 'orange' drink of the Coca-Cola Company, is seen as one of
the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993. Over the years
Fanta has occupied a strong market place and is identified as "The Fun Catalyst". Fanta is
perceived as a fun youth brand and stands for its vibrant color, tempting taste and tingling
bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in
the moment. This positive imagery is associated with happy, cheerful and special times with
friends.
SPRITE
Introduced in 1960, Sprite is the worlds leading lemon-lime flavored soft drink. Sprite is
sold in more than 190 countries and ranks as the No. 4 soft drink worldwide, with a strong appeal
to young people. Millions of people enjoy Sprite because of its crisp, clean taste that really
quenches your thirst. But Sprite also has an honest, straightforward attitude about things that
sets it apart from other soft drinks. Sprite encourages you to be true to who you are and to
obey your thirst.
LIMCA
Limca born in 1971 has remained unchallenged as the No.1 sparkling drink in the cloudy
lemon segment. The success formula is the sharp fizz and lemoni bite combined with single
minded preposition of the brand as the provider of Freshness.
Lime n lemoni limca derived from nimbu + jaisa, hence lime sa. Limca has been
lived up to its promise refreshment and has been the original thirst choice of millions of
consumers for over 3 decades.
JUICE SECTION:
MAAZA
Over the years, brand Maaza has become synonymous with Mango. This has been the
result of such successful campaigns like "Taaza Mango, Maaza Mango" and "Botal mein
Aam, Maaza hain Naam". Consumers regard Maaza as wholesome, natural, fun drink which
delivers the real experience of fruit.
The current advertising of Maaza positions it as an enabler of fun friendship moments
between moms and kids as moms trust the brand and the kids love its taste. The campaign builds
on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly
captured in the tagline "Yaari Dosti Taaza Maaza"
Minute maid- one of the largest juice and juice drink brands. The history of the minute
maid brand goes as far back as1945 when the Florida food corporation developed orange
juice powder. They branded it minute maid, a name connoting the convenience and the ease
of preparation (in a minute).
KINLEY
Kinley water comes with the assurance of safety from the Coca Cola Company. That is
why we introduced kinley with reverse osmosis along with the latest technology to ensure
purity of our product, because we believe that right to pure, safe drinking water is
fundamental.
Packs
500ml
750 ml
1ltr
Price
10
10
20
COMPETITOR ANALYSIS
PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company
never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks
include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage;
PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water.
PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola
hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the
rest belongs to Pepsi.
Nestl: Nestle does not give that tough a competition to Coca-Cola as it mainly deals
with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has
been introduced into the market by Nestle provides a considerable amount of competition
to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it
is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk
products also have become substitutes to the products of the company due to growing
health awareness among people.
Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever
since times and people have laid all their trust in the Company and the products of the
Company. Apart from food products, Dabur has introduced into the market Real Juice
which is packaged fresh fruit juice. These products give a strong competition to Maaza
and the latest product Minute Maid Pulpy Orange
The soft drink market all over the world has been witnessing a neck to neck battle between
the two major players, Coca-Cola and Pepsi since the very beginning. The thirst quenchers are
trying hard to have the major chunk of the pie of carbonated soft drink market. Both the players
are spending their energies in building capacity, infrastructure, promotional activities etc.
Coca-Cola being 11 years older than Pepsi has dominated the scene in most of the soft drink
markets in the world and enjoying leadership in terms of market share. But the Coca-Cola people
are finding it hard to keep away Pepsi, which has been narrowing the gaps regularly. The two are
posing threats to each other in every nook and corner of the world. While Coca-Cola has been
earning most of its bread and butter through beverage sales, Pepsi has a multi products portfolio
with some portion from the same business.
In the Cola segment, which occupies by far the largest chunk of the soft drink market in India,
the market share of Coke is 60%while the market share of Thums-up is 32.16%. The market
share of Coke in this Cola Segment is 27.84%. The remaining market share is occupied by the
other brands, which constitute about 14% of the Cola market share.
So Coca-Cola with its two brand clubbed together i.e. Thums-up + Coke occupies a
combined market share of 60% (32.16% + 27.84%) which is just higher than the market share
occupied by Pepsi on the all India basis.
PEPSI
PEPSI PROFILE
Pepsi Co. Inc. was founded in the year 1965. Major products of the new company are
Pepsi Cola. Diet Pepsi and Mountain Dew. Pepsi entered the Indian market in 1992 and now is
the market leader with a market share of 26.5 percent in the cola segment. Pepsi is in between the
two of it's closet competitors as far as marketing strategies are concerned. Pepsi is an
international drink with Indian imagery in it's communication Traditional focus of Pepsi has been
on the early teenager with a gender skew more to the female.
Pepsi is by far the more aggressive player in the market. With in your face advertising
continuous event marketing targeting the new generation and eye catching merchandising. It's
got its selling strategy well mapped out.
The company has always been innovating it's ad campaigns which has helped the company to get
top of the mind recall. From "The choice of the new generation" to the "Freedom" campaign the
company has been able to Indianise the brand. With the help of promotional schemes Pepsi has
managed to keep the brand alive and has not let it become old. During 1995 the total ad spent by
the company was Rs. 6.98 crore only on television Pepsi has set aside Rs. 8 crore for its
advertising programme in the run up to and during the cricket world cup.
FLAVOUR
COKE BRAND
PEPSI BRAND
Cola
Coca-Cola
Pepsi
Thums-up
Pepsi diet
Coke diet
Orange
Cloudy
Lemon
Clear lime
Mango
Fanta
Mirinda
Limca
Mirinda lime
Sprite
7up
Maaza
Slice
CURRENT STUATION
PEPSI VS COCA-COLA
A Comparison
TASTE
Coca-Cola is the original cola, while there isn't a huge difference in taste;
Pepsi mirrored their cola after Coke's, being just different enough in taste to
not actually be the same drink.
SIMILARITIES
Pepsi-Cola and Coca Cola Classic are both carbonated cola beverages.
SWEETNESS
Pepsi tastes sweeter than Coca-Cola, This is the reason why many prefer
Pepsi over Coca-Cola in a blind test but may prefer Coke when drinking an
entire can.
CARBONATION
Coca-Cola has more carbonation than Pepsi depending on what region you are
in. It was said that depending on where each one was made the amount of
carbonation in them will be different therefore proving that neither CocaCola nor Pepsi have more carbonation.
PEPSI VS COCA-COLA
THE COLA WAR
The Cola
Wars are a
campaign of
mutually- targeted
television
advertisements and marketing campaigns since the 1980s to present between soft
drink manufacturers Coca-Cola Company and PepsiCo Incorporated . According
to Consumer Reports, in the 1970s, the rivalry continued to heat up the market.
Pepsi conducted blind taste tests in stores, in what was called the " Pepsi
Challenge ".
These tests suggested that more consumers preferred the taste of Pepsi
(which is believed to have more lemon oil, less orange oil, and uses vanillin
rather than vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi
kicked off the "Challenge" across the nation. This became known as the " Cola
Wars."
In 1985, The Coca-Cola Company , amid much publicity, changed its
formula. The theory has been advanced that New Coke, as the reformulated
drink came to be known, was invented specifically in response to the Pepsi
Challenge. However, a consumer backlash led to Coca-Cola quickly introducing
a modified version of the original formula (removing the expensive Haitian lime
oil and changing the sweetener to corn syrup) as Coke "Classic".
Competition
Many of the brands available from the three largest soda producers, The CocaCola Company and PepsiCo are intended as direct, equivalent competitors. The
following chart lists these competitors by type or flavor of drink.
Flavor/Type
PepsiCo
Cola
Pepsi
Coca-Cola
Diet Cola
Coca-Cola Cherry
"Pepper"-style
Dr Slice
Root beer
Barq's
Ramblin' Root Beer
Cream soda
Juices
Tropicana,
Dole
Minute Maid,
Fruitopia,
Simply Orange
Iced tea
Lipton,
Brisk
Nestea,
Gold Peak Tea
Sports drinks
Gatorade,
Propel
PowerAde,
Aquarius,
Vitamin Water
Energy drinks
AMP
Full Throttle,
NOS,
Relentless,
Monster
Mineral Waters
Aquafina
Kinley,
Dasani
FINANCIAL STATEMENT
Coca-Cola Co.'s enterprise value increased from 2010 to 2011 and from 2011 to 2012,
therefore it is safe to invest in this company.
OBJECTIVES OF STUDY
To discover the reasons and time for which the discount policies are given.
To check out the availability of several promotional scheme of coca-cola for the
dealers
RESEARCH METHODOLOGY
Type of research:
Exploratory Research
Data Type :
Primary and secondary
Primary Data:
Based on interviews
Oral investigation
Secondary Data :
Internet
Magazines
Files
Records
ANALYSIS OF FINANCIAL
SCHEME OF COCA COLA
DISCOUNTING
AND
PROMOTION
The pricing policy of the company is uniform at all the places for the consumers i.e. the
prices charged by the company for its products from the end users are same in all the areas
throughout the country. But the prices charged by the company from the retailers i.e. Trade Price
for retailers may differ from one state to another. The reason for the variation can be the taxation
policy of the government. If the tax rate is low in a particular state, then the trade price for
retailer in that area will be low but if the tax rate is high, trade price will be more. Another reason
for that can be the transportation charges incurred by the company. If the production plant is far
from the depot, then the company will have to incur high transportation costs which will be
included in the trade price charged from the retailer but if the production plant is not that far
from the depots, then the company will incur a lower transportation costs and can provide
products to the retailers at low price. The committed discounts given to the different HVOs
depend upon their sales volume. The discount is directly proportionate to the sales. The HVO
which makes high and frequent purchases will get a higher rate of discount. The committed
discounts are not given to all the outlets but the non- committed discounts are offered throughout
the territory. The committed discounts are given to the selected outlets from where the company
is generating a high amount of revenue.
HVOs being served by the company have been categorized into two types:
Direct HVOs :
Direct HVOs are the HVOs which are served directly from the companys depots. Direct
HVOs get the supply of the products directly from the companys depots.
Indirect HVOs :
Indirect HVOs are the HVOs which are served by the middlemen i.e. distributors.
Indirect HVOs do not make purchases directly from the company. They get the supply of
the products from the distributors of the company. The distributors purchase the products
from the company and then they serve the HVOs under them.
Primary Discount :
It is the discount which is given to the distributors by the company or which is given to
the Direct HVOs by the company.
Secondary Discount :
It is the discount which is given by the distributors to the HVOs.
The company follows two types of discounting policies i.e. committed discounting policy and
non-committed
The factors which affect the decision of ASMs regarding the discounts to be given to the outlets
are:
Committed Discounting:
The sales volume of the HVOs for a particular period is the dominant factor which
determines the specific discount that should be given to them. The committed discounting
is done on the basis of sales and other factors like negotiation with the HVO, visibility
provided by the HVO, etc. The HVO which purchases more products and make frequent
purchases is given a higher rate of discount. The cash discount is given to some HVOs
and it is deducted from the amount of payment. The company also provides the products
of the same value of discount to some HVOs in card discount.
Non-committed Discounting:
The trade schemes given to the HVOs are also determined to a great extent by the
competitors discounting policies. For example, in Delhi Haat area earlier both PEPSI and
COKE were offering the scheme of 2 free bottles of 600 ml on purchase of each case of
the 600 ml pack. But when PEPSI started offering 4 free bottles to attract HVOs to
purchase its more products, then COKE followed reactive strategy and started offering 3
free bottles. They did not follow the competitor policy of offering 4 free bottles because
COKE has a greater market share in that specific area which is more than 90%.
Trade Discount
Trade Discount is a reduction in the catalogue price of the goods allowed only if the quantity
ordered by the buyer is quite large. Its purpose is to encourage the buyer to make bulk purchases.
It is allowed on cash as well as credit sales.
Seasonal discount
These are price reductions given in off session to push the product in the market when an order
is placed in a slack period.
PROMOTIONAL DISCOUNT
It is offered only on product which are ready in stock and not on product which is made to order.
We can alter or add any item from scheme at any point of time without notice.
National
Local.
National Key Accounts include outlets like McDonalds, Dominos, etc. which are operated
nationally in the country.
Local Key Accounts include outlets which have a chain of outlets within a particular region.
The company follows calendar year as its financial year i.e. from 1 st January to 31st
December. Discount is given as a percentage against the trade price or some amount of discount
is given on per case basis and the trade price for retailers is calculated by subtracting the
retailers margin from the MRP.
Trade Price (for retailers) = Maximum Retail Price Retailers Margin
The trade price for distributors is calculated by subtracting the distributors commission from the
MRP.
Trade Price (For Distributors) = Maximum Retail Price Distributors Commission
The term which is used for the discounting to HVOs is CPC and CPC is denoted as Cost
Per Case which is the discount cost per case. If CPC for any HVO for a particular pack size is 20,
it means that the outlet is getting a discount of Rs. 20 per case on purchase of number of cases of
that particular size. If the retailer is getting two free bottles on purchase of a case of 600 ml, then
CPC will be calculated as:
X 2
24*
*24 is the no. of bottles in one case.
CPC = Actual discount to be given to HVOs and Key Accounts
Volumes
The SM (Sales manager) prepares an annual discounting budget and distributes it to the
ASMs (Assistant Sales Managers). ASMs then split the annual budget allotted to them into
monthly discounting budget and allocate it to the different HVOs operating under them.
Negotiation : The discount to be given to the HVOs depend upon the negotiation
between the HVOs and the company. Suppose one HVO is generating the sales of 1000
cases in an year for the company and is getting a discount of Rs 10 per case and there is
another HVO which is generating the sales of 2000 cases in an year and if the HVO
which is selling the 2000 cases is ready to purchase the products at rs.10 per case, then
the company will restrict the discount to rs.10 per case which is also given to the HVO
generating half of the sales of its sales volume. In this case, although the sales volumes
are different but the discount is same. Therefore, negotiation is one of the crucial factors
which decide the specific rate of discount to be given to different HVOs.
Frequency of purchases : HVO which makes frequent and regular purchases are
generally given higher discount as compared to other HVOs because they
Pepsis discounting : Sometimes discounts are also decided on the basis of the discounts
offered by the rival company. For example, if Pepsi offers Rs. 20 per case discount to a
particular HVO and coke wants to keep its products in that HVO, then itll have to offer a
higher discount to that HVO.
Monopoly outlet : A monopoly HVO which is selling only the products of coca-cola and
not purchasing the products of the competitors, then that HVO is given a higher amount
of discount per case for being the seller of coca-cola products only.
Purity : Purity means when the outlet is keeping only the products of coca-cola in the
refrigerator which is provided by the company to serve chilled cold drink to the
customers. If the purity reports come to be OK, then the company sometimes provides
incentive to the HVO by offering discount on different pack sizes.
Fat dealer : A fat dealer is a dealer who resells the products to the retailers in the nearby
locality. If a HVO is performing as a fat dealer, then it gets some discount for providing
the service to the retailers in the nearby locality on the behalf of the company.
Location : If a HVO is localized primly in any market or an area, then it provides a better
space and visibility to the products of the company and the company provides a higher
discount to that specific HVO.
In January & February 2012 discount given by coca cola is seasonal discount.
In March & April promotional discount is given by coca cola to their HVO.
Discount on Fanta
In 2012 coca cola comp give the discount on 600Ml,1.25Ltr,2Ltr,2.25Ltr pack of FANTA & on
FANTA Mz. Discount on Fanta is less than LIMCA MAAZA & SPRITE
Discount on Limca
In 2012 coca cola give the discount on 600Ml CSD, 2Ltr, 2.25Ltr, 1250Ml pack of Limca. The
discount on limca is less then Sprite &Maaza.
Discount on Maaza
In 2012 coca give the discount on 600ml, 1200Ml, 2.25Ltr, Mz tetra pack, pack of Maaza.The
discount on MAAZA is equal to Sprite & Thums up.
Discount on Sprite
In 2012 coca cola give the discount on 300ml , 600Ml, 2.25Ltr, 2Ltr, 1250Ml. sprite discount is
equal &more than the Maaza.
Discount on Thums Up
In 2012 coca cola give the discount on 2Ltr pack. Discount on THUMS UP is less than all the
other product.
MISREPRESENTATIONS BY SALESMEN
Special Offers:
Crown palat kismat palat offer was being run by the company for the retailers in which
they will get the discount of the mention amount in the crown. Loss of 2 bottles are
allowed for a salesman on a day which means that if in any case 2 bottles get burst, he
wont b charged for that. But if it comes out to b 3 bottles then the loss of 1 bottle will be
charged to his account. But if on any day, no bottles got burst, then they drink the 2
bottles and also if the crown contains some discount amount, then they take out cash from
the days sales and submit the crowns in the depot.
MISREPRESENTATIONS BY DISTRIBUTORS
PEPSI VS COCA-COLA
Marketing
Control of market share is the key issue in this case study. The situation is
both Coke and Pepsi are trying to gain market share in this beverage market,
which is valued at over $30 billion a year. Just how this is done in such a
competitive market is the underlying issue.
The facts are that each company is coming up with new products and ideas in
order to increase their market share. The creativity and effectiveness of each
company's marketing strategy will ultimately determine the winner with respect
to sales, profits, and customer loyalty. Not only are these two companies
constructing new ways to sell Coke and Pepsi, but they are also thinking of ways
in which to increase market share in other beverage categories. Although the
goal of both companies is exactly the same, the two companies rely on somewhat
different marketing strategies.
Pepsi has always taken the lead in developing new products, but Coke soon
learned their lesson and started to do the same. Coke hired marketing executives
with good track records. Coke also implemented cross training of managers so it
would be more difficult for cliques to form within the company.
On the other hand, Pepsi has always taken more risks, acted rapidly, and was
always developing new advertising ideas . Both companies have also relied on
finding new markets, especially in foreign countries.
In the foreign markets, Coke has been more successful than Pepsi. For example,
in Eastern Europe, Pepsi has relied on a barter system that proved to fail.
However, in certain countries that allow direct comparison, Pepsi has beat Coke.
In foreign markets, both companies have followed the marketing concept by
offering products that meet consumer needs in order to gain market share. For
instance, in certain countries, consumers wanted a soft drink that was low in
sugar, yet did not have a diet taste or image. Pepsi responded by developing
Pepsi Max.
These companies in trying to capture market share have relied on the
development of new products. In some cases the products have been successful.
However, at other times the new products have failed. For Coke, changing their
original formula and introducing it as New Coke was a major failure . The new
formula hurt Coke as consumers requested Classic Cokes return.
Pepsi has also had its share of failures. Some of their failures included: Pepsi
Light, Pepsi Free, Pepsi AM, and Crystal Pepsi. One solution to increasing
market share is to carefully follow consumer wants in each country.
The next step is to take fast action to develop a product that meets the
requirements for that particular region. Both companies cannot just sell one
product; if they do they will not succeed. They have to always be creating and
updating their marketing plans and products. The companies must be willing to
accommodate their target markets.
Gaining market share occurs when a company stays one-step ahead of the
competition by knowing what the consumer wants. My recommendation is to
make sure the company is always doing market research. This way they are able
to get as much feedback as possible from consumers.
Next, analyze this data as fast as possible, and then develop the new product
based upon this data. Once the product is developed, get it to the marketplace
quickl y where time is a ver y critical factor.
PEPSI VS COCA-COLA
Advertising Strategies
PEPSI
For over 100 years, Pepsi-Cola has produced some of the finest soft drink ads
available anywhere in the world. From today's "Joy of Pepsi," as sung by
Britney Spears, to yesterday's "Nickel, Nickel" (1939), our ads are as memorable
as the products we produce.
Some highlights of the Ads are given below .
1999: The new campaign highlights the popular soft drink that goes with
everything from food to fun.
Pepsi's last major campaign change was in 1999, when it debuted "The Joy of
Cola," which became "The Joy of Pepsi" in 2000.
Pepsi updates its look with a bolder, more contemporary image that better
captures the brand's youthful attitude.
Mountain Dew offers its third line extension with Mountain Dew LiveWire,
combining the unique citrus taste of Mountain Dew with a bold orange flavor.
Pepsi's blockbuster summer promotion "Pepsi Play for a Billion" gives 1,000
consumers the chance to play for $1 billion on a live television show on The
WB. A guaranteed $1 million prize winner will be chosen and will then have a
chance to win $1 billion without forfeiting the $1 million prize.
In September, Richard Bay, a 42-year-old high school teacher from Princeton,
West Virginia, became a millionaire on "Pepsi Play for a Billion" on The WB.
Bay and the television audience then held their collective breath to see if he
would also win the billion dollars. Instead, his number was two digits off the
billion-dollar number, but Bay was still pleased with his cool million.
2000: The popular Pepsi Challenge makes its return , and consumers across the
country let their taste decide the best cola and one-calorie cola. Helping launch
the Challenge is two of baseball's top sluggers Sammy Sosa and Ken Griffey
Jr.
On the airwaves, the "Joy of Cola" campaign is a hit as "Pepsi Girl" Hallie
Eisenberg rocks with pop star Faith Hill and perennial rockers KISS.
Among those doing the Dew is hip-hop artist Busta Rhymes, and Aquafina
launches its first-ever television advertising campaign.
2001: The popular "Joy of Cola" tagline gets an update, becoming the "Joy of
Pepsi." Three months later, Britney Spears stars in a blockbuster Pepsi
commercial that breaks during the Academy Awards. An hour before the telecast,
the high-energy spot debuts online, where more than 2 million fans click their
way to Britney's own version of the "Joy of Pepsi."
Thirsty consumers are invited to "discover a sensation as real as the streets,"
when cherry- flavored Mountain Dew Code Red is introduced.
Pepsi puts a little twist on a great thing, unveiling the first national TV
commercial for new lemon-flavored Pepsi Twist.
2002: In March, supermodel Cindy Crawford helps introduce a new look for Diet
Pepsi. The updated graphics better represent the brand's light, crisp, refreshing
qualities.
Pepsi-Cola teams up with the National Football League, becoming its Official
Soft Drink Sponsor.
Pepsi declares, "It's a blue thing," and unveils Pepsi Blue in July. A fusion of
berries with a splash of cola, the blue-hued soft drink is created by and for
teens. Through nine months of research and development, Pepsi asks young
consumers what they want most in a new cola. Their response: "Make it berry
and make it blue."
In December, American music and film sensation Beyonc Knowles is
welcomed as the newest member of the Pepsi family.
2003: Pepsi-Cola unveils a new advertising campaign, "Pepsi. It's the Cola,"
which is the brand's first major campaign shift since 1999. The new campaign
highlights the popular soft drink that goes with everything from food to fun.
Pepsi's last major campaign change was in 1999, when it debuted "The Joy of
Cola," which became "The Joy of Pepsi" in 2000.
Pepsi updates its look with a bolder, more contemporary image that better
captures the brand's youthful attitude.
Mountain Dew offers its third line extension with Mountain Dew LiveWire,
combining the unique citrus taste of Mountain Dew with a bold orange flavour.
Pepsi's blockbuster summer promotion "Pepsi Play for a Billion" gives 1,000
consumers the chance to play for $1 billion on a live television show on The
WB. A guaranteed $1 million prizewinner will be chosen and will then have a
chance to win $1 billion without forfeiting the $1 million prize.
In September, Richard Bay, a 42-year-old high school teacher from Princeton,
West Virginia, became a millionaire on "Pepsi Play for a Billion" on The WB.
Bay and the television audience then held their collective breath to see if he
would also win the billion dollars. Instead, his number was two digits off the
billion-dollar number, but Bay was still pleased with his cool million.
2004: Pepsi unveils five new TV commercials for Pepsi and Sierra Mist on
Super Bowl XXXVIII, making this the 19th straight year that Pepsi has
advertised in the big game.
On Super Bowl Sunday, Apple and Pepsi officially launch a historic promotion
to legally give away millions of free songs to Mac and Windows PC users from
Apple's iTunes Music Store.
On the Academy Awards telecast, Diet Pepsi stole the spotlight as the countrys
fastest-growing major soft drink bowed a new advertising campaign with the
tagline, Diet Pepsi. Its the Diet Cola. The zero-calorie cola brand illustrates
how it is the best option to go with food and social occasions, much like its
sister brand, Pepsi-Cola.
Two popular sportscasters help turn lifes everyday moments into a cause for
celebration in a new advertising campaign for Pepsi EDGE, the new cola with
full-flavored taste but half the sugar, carbs & calories of regular colas. The
campaign tagline, "This moment deserves a Pepsi EDGE," reminds consumers
that they can reward themselves with a Pepsi EDGE for completing even the
simplest of tasks.
Mountain Dew brings nostalgia back into pop culture as it introduces new
commercials featuring the classic Mad Magazine "Spy vs. Spy" characters
that will stop at nothing to get their Dew.
COCA-COLA
As the world's favourite drink, the world's most valuable brand and the
most recognizable word across the world after OK; Coca-Cola has a truly
remarkable heritage. From a humble beginning in 1886, it is now the flagship
brand of the largest manufacturer, marketer and distributor of non-alcoholic
beverages in the world.
Coca-Cola returned to India in 1993 and over the past ten years has captured the
imagination of the nation, building strong associations with cricket, the thriving
cinema industry, music etc.
Coca-Cola has been very strongly associated with cricket, sponsoring the World
Cup in 1996 and various other tournaments, including the Coca-Cola Cup in
Sharjah in the late nineties.
Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were
very popular and had entered the youth's vocabulary.
2002:Coca-Cola launched the campaign " Thanda Matlab Coca-Cola " which skyrocketed the brand to make it India's favourite soft-drink brand.
2003: Coke was available for just Rs. 5 across the country and this pricing
initiative together with improved distribution ensured that all brands in the
portfolio grew leaps and bounds.
Energy Drink
1box* (24pcs) + 4pcs free
PROMOTION STRATEGIES OF COCA COLA
GETTING SHELVES
They get or purchase shelves in big departmental stores and display their products in
Those shelves in that style which show their product clearer and more attractive for the
consumers.
EYE CATCHING POSITION
Salesman of the Coca Cola Company positions their freezers and their products in eye catching
positions. Normally they keep their freezers near the entrance of the stores.
SALE PROMOTION
Company also does sponsorships with different college and schools cafes and sponsors their
sports events and other extra curriculum activities for getting market share.
UTC SCHEME
UTC mean under the crown scheme, coca cola often do this type of scheme and they
Offer very handy prizes in it. Like once they offer bicycles, caps, TV sets, cash prizes etc. This
scheme is very much popular among children.
Good Advertising.
Effective Incentive Policy.
Quality.
Wide &Deep Distribution System.
Attractive packaging.
Allotting SGAS (Refrigerator, Chest cooler, Table Umbrella, Chairs etc.) to retailers.
Sales promotion was traditionally viewed as a supplement to a firm's sales or advertising efforts,
but now it has become an integral part of the promotional mix.
Company regular use this tool for increasing the consumption of their products for example:
Schemes:
Hindustan beverages india comes out with the schemes on their different products many times in a year.
Most of these schemes are made to benefit the retailers. Some of the schemes are as follows:
These schemes keep on changing depending upon the stock. Beverages companies
are giving these schemes despite of acute shortage of soft drink in every segment
to meet the competition, to make sure the availability their brands and sometimes
to satisfy and benefit the retailers and the end consumers.
PROMOTION
Top line promotions
Includes the promotional activities intended towards mass consumers using mass
media.
TV Ads, design of banners, and other mega event (like world cup cricket match
and other) sponsorship initiatives taken up by the company simultaneously all
around India with no difference in designs or execution fall in this category.
Below the line promotion
Includes the promotion schemes, publicity material, Point of Sale display
Done by the company from zonal, plant, sales manager and area sales manager
level.
At the sales manager and area sales manager level promotion is done exclusively
for the cities in their respective areas.
These activities can be categorized under sales promotions
DIRECT MARKETING
Uses direct marketing in many ways
It partners with various restaurants, movie theatres, etc. to carry its product
So when a customer orders a drink, the only brand they are offered is Coca-Cola, which
forces them to consume that brand itself
Thus Coke forces out the competitors, and keeps the restaurants, or other businesses,
purchasing their product over and over again
Eg. Mc Donalds, Dominos
Sponsorship
CONTESTS
As a mark of the football frenzy that grips the city of Kolkata every four years announced COCA COLA FOOTBALLER HULLOR adding to the fervour of the FIFA
World Cup 2010
Inviting paras to show off their passion by decorating their clubs/paras in the
theme of their favoured team
Also inviting individuals to show their football mania by dressing up as their
favourite footballer
Coca Cola celebration canter is touring the city - visiting paras, asking people to
show their passion for football by participating in contests
Contest Winners were gratified with LCD Televisions & Cash Prizes
PEPSI VS COCA-COLA
Conclusion
This project has been helpful in understanding the meaning of Brand Rivalry. It
was noted that Brand Rivalry is an extra aggressive in competition between two
different brands to reach at number one or to capture more market share. In the
most aggressive variants, ethics, moral values and even the law can be neglected
and it is only a race to reach the number one position which drives the brand.
Through this project we were able to understand how Pepsi & Coca-Cola were
formed and the problem faced by them in the initial years of operation and how
did they overcome all those difficulties.
This project made known to us how Pepsi & Coca-Cola being the prominent
brand rivalries fought fiercely against each other through their production
tactics, marketing strategies and advertisements. All through this war which
continues even to this day, both the brands have done their level best to
convince the people that one is better than the other.
Through this project we also discussed various differences that exist between the
strategies and techniques adopted by both of them to sell out their product.
Therefore, I hope that the project has met its aim.
In fact, all of the battles have seen a conclusion....a victor and a loser; but in the
case of Pepsi & Coca-Cola, while both sides still claim a victory, the jury is still
out the public is still undecided and the soda still stands in solitude.
As the bottom line conclusion, the battle of Coca-Cola versus Pepsi does not
seem to end. It is like they are arch enemies for each other. Nevertheless, it is
always interesting to see the market battle between these two soft drink
products.
FINDINGS
Coca Cola give more discounts on sum product like Thums up, Limca.
Advertising campaign of coca cola now can see easily on villages like sign board,
hoardings on highway, banners at outlets Personal - selling assistance gives to them by
the company & more POPs.
Advertising materials and refrigerators from Coca- Cola has also good result on sales. the
sales promotion techniques like- Discount to monopoly retailers & schemes on products
is good.
RECOMMENDATION
The analysis of discounts of FUTURE VALUE RETAIL shows that the company is
providing excess discounts to Future value retail on the basis of agreement. The factors
responsible for deciding the specific discount rates to be given to specific HVO should be
considered and the discounts to those HVOs should be reduced accordingly.
The company should maintain proper records of the sales of different pack sizes for each
HVO on monthly basis. Coca-cola should follow a structured discounting system which should
involve the formation of slab rates for granting discounts to different HVOs on the basis of the
sales volume. The slab rate of discounts at a particular level of sales should reflect the maximum
discount that should be given to the HVOs. Discounts should be given to HVOs by negotiation
and the slab rate of maximum discounts should be considered while granting the discounts.
Discount rate for any HVO should not exceed the maximum discount rate decided for that
particular level of sales.
The company should try to adapt to the below suggestions and improvements in their
system to prevent the misrepresentations being done by the salesmen and by the distributors who
make out their own benefits by using the loopholes of the discounting system.
Salesmen daily carry a scheme letter on which schemes are mentioned that is to be given
to the outlets on a particular day. It should be the duty of the retailer to ask for the letter
and check the scheme offered by the company on daily basis. The retailer should also ask
for the bill. All the retailers should be made aware of asking for the daily scheme letter
and bill whenever they make any purchases. No product should be sold without issuing
bill to the retailers.
Daily sales report of the retail outlets and HVOs should be made by the sales executives
who are catering to the different markets or areas in Varanasi. This will help the company
to cross check the information given by the salesmen and by the sales executives and any
kind of variation can easily be checked out. It should be done for direct as well as for
indirect outlets. This will also help in finding out if the salesmen sold the products to end
consumers.
When new promotional scheme started, information about the promotional scheme. Must
be published in newspaper and advertisement of the promotional scheme be transmitted on
television so that large number of consumer know about the promotional scheme. Company
must make new strategy to fight local cold drinks brands
Free gifts must be distributed among retailer who sells higher quantity of Coca- Cola
product.
A proper audit system should be implemented by the company to check out the purchases
being made by the direct as well as indirect HVOs by taking a sample size of HVOs
which should involve the check of the bills issued to the HVOs during a particular month
by visiting the HVOs. The cooperation of the HVOs is necessary in this case. Whenever a
distributor claims for the cash discounts given by him to the HVOs, then the company
should send its employee to check whether he is claiming the actual amount of discount
or if he is claiming some extra funds from the company. The audit work of that employee
should be checked by the ASMs to check and implement control over these kinds of
activities.
In case of any special offers being run by the company for the retailers, then the
collection and submission of crowns should be done by the sales executives instead of the
salesmen and the amount of discount earned by a particular outlet should be given in the
next days sales.
The sales executives should take care that the distributors are providing the schemes to all
the indirect retailers and should also ensure that indirect retail outlets are not getting the
products at a reduced rate by deducting the cost of the scheme. All the activities of sales
executives should be checked periodically by the ASMs.
The company should not give the same discounts on the pack sizes of 250 ml and 300 ml
because the sales volume of Maaza 250ml is lesser than the brands available in 300ml
pack size. Coca-cola should treat 250ml as a separate pack size or separate product and
should not offer same discounts as given on 300ml pack size. The sale of Maaza 250ml is
low as compared to sale of 300ml because of the number of brands available in 300ml.
LEARNING
Prepare daily reports for dispatch of the products to various distributor
Monitor and track the shipment
Maintain the transaction records and generates reports from time to time
Acknowledgment to the request sent by the distributors
LIMITATION
Time of research
No face to face contact as the research is based on indirect communication
No direct talks with the distributors and retailers.
Primary data was collected from personal interview
BIBLIOGRAPHY
Internet site
www.coca-cola.com
www.coca-colaindia.com
www.en.wikipedia.org/wiki/coca-cola
www.answers.com/topic/coca-cola
www.pepsico.com
The Telegraph