Project Report On

Assessing the service Quality level of Maaza brand with respect to its competitors in Nagpur City

A report submitted towards the partial fulfilment of the requirements of the two years fulltime Post Graduate Diploma in Management.

Under Guidance of Dr. Vikas Kumar Submitted By: Indrajith H PGDM (GENERAL) Roll No. : 2K11A13 (2011-2013)

ASIA PACIFIC INSTITUTE OF MANAGEMENT 3&4 Institutional Area, Jasola, NEW DELHI 110025

ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number of people to whom I shall always remain grateful. I would like to express my gratitude to Superior Drinks Pvt Ltd. for allowing me to undertake this project. I must express my profound gratitude to my project guide Prof. Vikas Kumar and Mr.Atul Kumar Organisation Mentor, who has guided me to completion of this project & he has been a pillar of strength to me and always stood by my side during the project tenure with his innovative ideas and conversation full of force, zest and attitude. I am also grateful to my institute, Asia Pacific Institute of Management and various faculty members who provided me a platform from where the academic awareness can be transformed to realistic applications.

Indrajith.H PGDM (General) Asia-Pacific Institute of Management, New Delhi

DECLARATION
I hereby declare that the project work entitled Assessing the service Quality level of Maaza

brand with respect to its competitors in Nagpur City, submitted to the Asia Pacific Institute of
Management, is a record of an original work done by me under the guidance of Prof. Vikas Kumar, Asia Pacific Institute of Management, and this project work is submitted in the partial fulfilment of the requirements for the award of the Post Graduate Diploma in Management Program. The results embodied in this thesis have not been submitted to any other University or Institute for the award of any degree or diploma.

Indrajith H 2K11A13

I hereby certify the work done is original by the student

Dr. Vikas Kumar Asia Pacific Institute of Management

CONTENTS
EXECUTIVE SUMMARY CHAPTER 1: 1.1 INDUSTRY PROFILE 1.2 BEVERAGE INDUSTRY 1.3 GLOBAL MARKET SHARE OF COCA-COLA 1.4 INTRODUCTION TO COCA-COLA 1.5 COMPANY PROFILE 1.6 HISTORY OF COCA-COLA 1.7 MARKETING MIX OF COCA-COLA 1.8 ABOUT SUPERIOR DRINKS PVT LTD -7 -9 -11 -13 -15 -17 -25 -29 -5

CHAPTER 2: 2.1 SWOT ANALYSIS OF COCA-COLA(U.S.A) 2.2 TRENDS AND FORCES PORTERS FIVE FORCES MODEL SWOT ANALYSIS (INDIA) -30 -38 -42 -51

CHAPTER 3: 3.0 RESEARCH METHODOLOGY 3.1 REPORT ANALYSIS 3.2 CONCLUSION AND SUGGESTION BIBLOGRAPHY ANNEXURE -56 -61 -81 -83 -84

EXECUTIVE SUMMARY
We all aware how Cold drinks have become a part of us today in daily with this scorching heat and summer climate to resist this and to refresh one cold drink has become integral part of us. The first part of the study takes us through the present state of affairs of the beverage industry and Coca-Cola Company in Nagpur City. The report contains a brief introduction of Coca Cola Company and Coca-Cola India and a detailed view of the tasks, which have been undertaken to Assessing the Service Quality level of Maaza brand with respect to its competitors in Nagpur Cityi.e. we have performed SWOT analysis of Coca-Cola Company India in order to identify areas of potential growth for Coca-Cola. We have also given a brief description of trends and forces that are affecting Coca-Cola Company globally. The objective of the survey is to assess the service level of Maaza and its competitors in Nagpur city. The survey conducted in Nagpur city area, from a population of 2016 retailers, sample of 254 retailers were surveyed andopinion regarding service and its different aspect like ideal service according to retailer, timely delivery, fill rate, scheme communication, credit policy, frequency of delivery, fresh and replacement policy was taken to see where the mango based juice drinks manufacturers stood.

INTRODUCTION
A market survey is an important requirement for initiating any successful business. The objective of a market survey is to collect information on various aspects of the business. This survey is a tool through which we can minimize risk. After the market survey, the results must be analyzed in order to finalize a business plan.

Chapter 1

INDUSTRY PROFILE
THE FMCG INDUSTRY IN INDIA
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail

space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular)

1.2 BEVERAGE INDUSTRY IN INDIA

In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

BEVERAGES

ALCOHOLIC

NONALCOHOLIC

CARBONATED

NONCARBONATED

COLA

NON-COLA

NON-COLA

Fig 1.0 BEVERAGES IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: Alcoholic, non-alcoholic and sports beverages. Natural and Synthetic beverages. In-home consumption and out of home on premises consumption. Age wise segmentation i.e. beverages for kids, for adults and for senior citizens. Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.

If the behavioural patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category. Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.

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1.3 GLOBAL MARKET SHARE OF COCA-COLA

In 2009, the company generated revenues of $31 billion with $6.8 billion net income. An increased consumer preference for healthier drinks has resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KOs sales. KOs profits are also vulnerable to the volatile costs for the raw materials used to make drinks - such as the corn syrup used as a sweetener, the aluminium used in cans, and the plastic used in bottles. Furthermore, slowing consumer spending in Coke's large North American market compounds the challenge of increasing costs and a weak economic environment. Finally, Coca-Cola earns approximately 75% of revenue from international sales, exposing it to currency fluctuations, which are particularly adverse with a stronger U.S. Dollar (USD). Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market is growing quickly, the traditional CSD market is still large in terms of both revenues and volume and highly lucrative. The size and variety of KOs offerings in the CSD category, coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO to maintain its share of this important market. KO has also responded to consumers changing tastes with new, non-CSD product launches and acquisitions such as that of Glaceau in 2007. Strong international growth has also more than offset a weak domestic market. On February 25, Coca-Cola Company announced its plan to buy Coca-Cola Enterprises (CCE) for $12.3 million. Since spinning of Coca-Cola Enterprises (CCE) 24 years ago, the soft drink market has changed dramatically with consumers buying fewer soft drinks and more non-carbonated beverages, such as PowerAde and Dasani water. Under the new deal, Coca-Cola Company will take control of the bottler's North America operations, giving the
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company control over 90% of the total North America volume. In return, Coca-Cola Enterprises will take over Coke's bottling operations in Norway and Sweden, becoming a European-focused producer and distributor. In March 2010, Coca-Cola Company entered into discussions to buy the Russian juice company, OAO Nidan Juices. The company is 75% owned by a private equity firm in London and 25% by its Russian founders and controls 14.5% of the Russian juice market. If successful, the purchase would add to Coca-Cola's 20.5% market share, passing Pepsi's 30% market share. The Russian juice market is estimated to be $3.2 billion dollars, and estimates of Nidan's purchase price are between $560-$620 million. In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruit smoothie maker. Last year the company bought an 18% share of the company for more than $45 million, and recent purchases of additional shares increased Coke's stake to 58%. In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715 million for the continued right to sell their products following the company's acquisition of Coca-Cola Enterprises (CCE). The deal covers the next 20 years with an option to renew for an additional 20 years.

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1.4

INTRODUCTION TO COCA-COLA

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Companys beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and notready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca- Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the CocaCola system has successfully applied a simple formula on a global scale: Provide a moment of refreshment for a small amount of money- a billion times a day. The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the worlds premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. 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

13

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.

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1.5
MISSION

COMPANY PROFILE

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness. To create value and make a difference.

VISION
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. 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 brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

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WINNING CULTURE:
Our Winning Culture defines the attitudes and behaviours that will be required of us to make our 2020 Vision a reality.

LIVE OUR VALUES :

Our values serve as a compass for our actions and describe how we behave in the world. Leadership: The courage to shape a better future. Collaboration: Leverage collective genius. Integrity: Be real. Accountability: If it is to be, it's up to me. Passion: Committed in heart and mind. Diversity: As inclusive as our brands. Quality: What we do, we do well.

FOCUS ON THE MARKET:

Focus on needs of our consumers, customers and franchise partners. Get out into the market and listen, observe and learn. Focus on execution in the marketplace every day.

ACT LIKE OWNERS

Be accountable for our actions and inactions. Steward system assets and focus on building value. Reward our people for taking risks and finding better ways to solve problems.

Learn from our outcomes -- what worked and what didnt.

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BE THE BRAND
Inspire creativity, passion, optimism and fun.

1.6 HISTORY OF COCA-COLA

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European coca wine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health.[9] Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888, three versions of Coca-Cola sold by three separate businesses were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.

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John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both 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 Cartersville, Georgia. 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. Candler never collected his dollar, but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were

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not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers. Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

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, under the name Coca-Cola Classic on July 10, 1985.

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose, the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfame potassium. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus. On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968.

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. The change is part of a larger strategy

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to rejuvenate the product's image. In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke.

Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close down its operation by a socialist government in the drive for self sufficiency. After 16 years of absence, coca cola returned to India and witnessed a different culture and economic platform. During their absence, Parle brothers introduced a new type of cola called THUMS UP. Along with, they also formulated a lemon flavoured drink, LIMCA, and mango flavoured, MAAZA. In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main competitor (Pepsi). They presumed that with the tried and tested products of Parle they will be able to regain their throne in the Indian soft drink market. Pepsi having a 6 year head start helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola) to return to India. Pepsi put more focus on the youth of the country in their advertisements but coca cola tried influencing Indians with the American way of life, which turned out to be a mistake. Coca-Cola invested heavily in India for the first five years, which got them credit of being one of the biggest investor in the country; however, their sales figures were not so impressive. Hence, they had to re-think their market strategies. Coca-Cola learned from Hindustan Lever that reducing their will result in more turnover, hence leading to profit. They launched an extensive market research in India. They ascertained that in India 3 As must be applied; Affordability, Availability and Acceptability. Coca-Cola learnt that they were competing with local drinks such as Nimbu Pani, Narial Pani, Lassi etc. and reached to a conclusion that competitive pricing was unavoidable. Since then they introduced a 200 ml

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glass bottle for Rs.5 now they have priced it Rs 8. Further, they had different advertising campaigns for different regions of the country. In the southern part, their strategy was to make Bollywood or Tamil stars to endorse their products. In various regions they tried portraying coca cola products with different regional food products. One of the most famous ad campaigns in India was Thanda Matlab Coca-Cola; they featured the same quote with different regional entities. Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e. 60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water Segment, compared to its arch rival, Pepsi. Diversifying their product range and having a competitive pricing policy, they have regained their throne. 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 manufactures 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 Countrys remotest areas.

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PRODUCTS OF COCA-COLA INDIA COCA-COLA GLASS

200ml, 300ml, 500ml, 1000ml PET 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml CAN 330 ml FOUNTAIN VARIOUS SIZES

Table - 1.0

LIMCA GLASS
200ml, 300ml, 500ml, 1000ml PET 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml CAN 330 ml FOUNTAIN VARIOUS SIZES

Table - 1.1

THUMS UP GLASS
200ml, 300ml, 500ml, 1000ml PET 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml CAN 330 ml FOUNTAIN VARIOUS SIZES

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Table - 1.2

SPRITE RGB
200ml, 300ml PET 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml Table 1.3 CAN 330 ml FOUNTAIN VARIOUS SIZES

FANTA GLASS
200ml, 300ml PET 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml Table 1.4 CAN 330 ml FOUNTAIN VARIOUS SIZES

MINUTE MAID PULPY ORANGE

Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.

MAAZA

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RGB
200ml, 250ml

PET 250ml, 600ml, 1.2L

POCKET MAAZA 200ml

Table 1.5

KINLEY
The importance of water can never be understated, Particularly in a nation such as India where water governs the lives of the millions, be it as a part of everyday ritual or as the monsoon which gives life to the sub continent. Kinley water comes with the assurance of safety from the Coca-Cola Company.

Available in PET 500ml and 1000ml.

GEORGIA GOLD COFFEE

HOT BEVERAGES Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino, Hot Chocolate, Cardamon Tea. COLD BEVERAGES Ice Teas, Cold Coffee. Table 1.6

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1.7
PRODUCT:-

MARKETING MIX OF COCA-COLA INDIA

Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite, Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where Coca-Cola identified major opportunities. In 2002, Packaged drinking water in India was a Rs 1,000 cr industry and growing by 40% every year. PDW was a low margin high volume business, but it was an attractive proposition for bottlers as it increased plant utilization rates. In this market Cokes Kinley was pitched against Ramesh Chauhans Bisleri and Pepsis Aquafina. The product not only faced intense competition but also was difficult to differentiate. Coke positioned Kinley as natural water with the tag line Bhoond Bhoond Mein Vishwas (Trust in each drop of water).

In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlers were brought into CCIs fold. This acquisition added Crush, Canada Dry and Sport Cola to CCIs product line. This meant CCI had three orange, clear lime and cola drinks each in its portfolio.

PRICE:Coke learnt with experience that price was a strategic weapon in an emerging market like
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India. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach of many Indian customers. In 2000, CCI conducted a yearlong experiment in coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by 30% demonstrating the importance of consumer affordability. So the 200ml pack priced at Rs 5 was rolled out countrywide in January 2003. The advertising Campaign highlighted the affordability and Indian image.

To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in testing marketing exercise conducted in mid 2002. In 2002 Kinley with 35% market share had become the leader in the retail PDW segment and was contributing 20% of CCIs revenues.

PLACE:Coke pushed down responsibilities from corporate headquarters to the local business units. The aim was to effectively align CCI's corporate resources, support systems and culture to leverage the local capabilities. CCI's operations had been divided into North, Central and Southern regions. Each region had a president at the top, with divisions comprising marketing, finance, human resources and bottling operations. The heads of the divisions reported to the CEO. Bottling operations were divided into four companies directed by the bottling head from headquarters. Under the new plan, CCI shifted to a six region profit center set up where product customization and packaging, marketing and brand building were taken up locally. A Regional General Manager (RGM) headed each region with the regional functional heads reporting to him. All the RGMs reported to VP (Operations, who in turn reported to CEO. The four bottling operations, with 37 bottling plants, were merged into Hindustan Coca-Cola Beverages (HCCB). Each of the six regions had on an average six bottling plants. Each plant was headed by an Area General Manager (AGM) and held profit
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center responsibility for a business territory. He reported to the RGM as well as the head of bottling at the head quarters.

PROMOTION:In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing campaign positioned Coca-Cola as an international brand and did not emphasize local association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums Up. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible. The overall marketing effort was also not focused as CCI changed the head of marketing three times during the period. Thumps Up remained neglected. Inadequate marketing support for other Parle brands also led to their declining market shares.

The bottlers taken over by Coke also had problems adjusting to a new work culture. They argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and asked CCI to take corrective action. Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well known personalities popular to this age group. During 90'ies Coke's promotion efforts did not seem to be effective. They were focused on mega events like the 1996 Cricket World Cup held in India. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official about it" campaign. Major analysts were surprised that Thumps Up was totally out of the picture during such a mega event. In 1998 localization of marketing efforts, CCI signed up celebrities like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to promote Coke. Coke
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also began efforts to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India was declared the fastest growing market within the Coca-Cola system. But things were far from normal. Attempts at building growth through discounts and PET take home segment were not very successful because of lack of coordination between the launches and marketing back-up.

To maintain good relationships with bottlers and avoid defections to the other camp, dealers had been pampered by offering expensive overseas trips. In 2000, Coke wrote off investments in India, amounting to $400 Mn. The revised value of CCI's assets after the charge was $300 mn.

CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it had become India's No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as a juice brand and saw a growth of almost 30% in 2001. Since India was a large country of different tastes and cultures, CCI customized its marketing strategy for different regions. It promoted the Coke brand in Delhi, Thumps Up in Mumbai and Andhra Pradesh, and Fanta in Tamil Nadu. Coke had plans to launch Rimzim, a spicy soda drink in North Maharashtra.

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1.8

ABOUT SUPERIOR DRINKS PVT LTD.

Superior Drinks Pvt. Ltd. Is one of the largest bottling plants of Coca-Cola Company, which is situated in Maharashtra in MIDC HINGNA NAGPUR-440028. Superior Drinks Pvt Ltd is owned by Shri Pradeep Agrawal. The plant established 1992 and launch of coca cola at superior drink Pvt. Ltd. Nagpur inaugurated by Mr. R. P. Nicholas president & C.E.O. coca cola India on 10 April 1996. Turnover of the plant is 25 crores. No. of people work in the plant is 150 including the labors.

Business Portfolio of Superior Group 1. Superior Drinks Pvt Ltd. Agra, Jabalpur ,Bilaspur,Nagpur & Mathura. 2. Superior Brewery Ltd. Faridabad. 3. Superior Industries and Distelleries - Uttar Pradesh 4. Superior Cruise Liners ( Luxury Cruise) Germany and Mumbai.

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Chapter 2
SWOT ANALYSIS OF COCA-COLA

STRENGTHES

WEAKNESS

Negative Publicity. World's leading brand. Sluggish Performance in Large scale of operations. North America. Robust revenue growth in 3 segments. SWOT OPPORTUNITIES ANALYSIS THREATS Growing bottled water market. Growing Hispanic Population in U.S. Intense Competition. Dependence on bottling Patners. Sluggish growth of Carbonated beverages. .
Fig 2.1 SWOT ANALYSIS OF COCA-COLA

STRENGTHS WORLDS LEADING BRAND

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Coca-Cola has strong brand recognition across the globe. The company has a leading brand value and a strong brand portfolio. Business-Week and Inter-brand, a branding consultancy, recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006.The Business Week-Inter-brand valued Coca-Cola at $67,000 million in 2006. CocaCola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million Furthermore; Coca-Cola owns a large portfolio of product brands. The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta.

Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry Coke and Coke with Lemon. Over the years, the company has made large investments in brand promotions. Consequently, Coca-cola is one of the best recognized global brands. The companys strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate existing ones.

LARGE SCALE OF OPERATIONS

With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola is the largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world. Coco-Cola is selling trademarked beverage products since the year 1886 in the US. The company currently sells its products in more than 200 countries. Of the approximately 52 billion beverage servings of all types consumed worldwide every day, beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1.4 billion. The companys operations are supported by a strong infrastructure across the world. CocaCola owns and operates 32 principal beverage concentrates and/or syrup manufacturing
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plants located throughout the world.

In addition, it owns or has interest in 37 operations with 95 principal beverage bottling and canning plants located outside the US. The company also owns bottled water production and still beverage facilities as well as a facility that manufactures juice concentrates. The companys large scale of operation allows it to feed upcoming markets with relative ease and enhances its revenue generation capacity.

ROBUST REVENUE GROWTH IN 3 SEGMENTS

Coca-Colas revenues recorded a double digit growth, in three operating segments. These three segments are Latin America, East, South Asia, and Pacific Rim and Bottling investments. Revenues from Latin America grew by 20.4% during fiscal 2006, over 2005. During the same period, revenues from East, South Asia, and Pacific Rim grew by 10.6% while revenues from the bottling investments segment by 19.9%. Together, the three segments of Latin America, East, South Asia and Pacific Rim bottling investments, accounted for 34.8% of total revenues during fiscal 2006. Robust revenues growth rates in these segments contributed to top-line growth for Coca-Cola during 2006.

WEAKNESS NEGATIVE PUBLICITY

The Coca-Cola Company has been involved in a number of controversies and lawsuits related to its relationship with human rights violations and other perceived unethical practices. There have been continuing criticisms regarding the Coca-Cola Company's relation to the Middle

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East and U.S. foreign policy. The company received negative publicity in India during September 2006.The company was accused by the Centre for Science and Environment (CSE) of selling products containing pesticide residues. Coca-Cola products sold in and around the Indian national capital region contained a hazardous pesticide residue.

On 10 December 2008, the US Food and Drug Administration (FDA) wrote to Mr. Muhtar Kent, President and Chief Executive Officer, to warn him that the FDA had concluded that Coca-Cola's product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food, Drug, and Cosmetic Act.

In January 2009, the US consumer group the Centre for Science in the Public Interest filed a class-action lawsuit against Coca-Cola. The lawsuit was in regards to claims made, along with the company's flavours, of Vitamin Water. Claims say that the 33 grams of sugar are more harmful than the vitamins and other additives are helpful.

SLUGGISH PERFORMANCE IN NORTH AMERICA

Coca-Colas performance in North America was far from robust. North America is CocaColas core market generating about 30% of total revenues during fiscal 2006. Therefore, a strong performance in North America is important for the company.

In North America the sale of unit cases did not record any growth. Unit case retail volume in North America decreased 1% primarily due to weak sparkling beverage trends in the second half of 2006 and decline in the warehouse-delivered water and juice businesses. Moreover, the company also expects performance in North America to be weak during 2007. Sluggish performance in North America could impact the companys future growth prospects and prevent Coca-Cola from recording a more robust top-line growth.

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OPPORTUNITIES GROWING BOTTLED WATER MARKET

Bottled water is one of the fastest-growing segments in the worlds food and beverage market owing to increasing health concerns. The market for bottled water in the US generated revenues of about $15.6 billion in 2006.

Market consumption volumes were estimated to be 30 billion litres in 2006. The market's consumption volume is expected to rise to 38.6 billion units by the end of 2010. This represents a CAGR of 6.9% during 2005-2010.

In terms of value, the bottled water market is forecast to reach $19.3 billion by the end of 2010. In the bottled water market, the revenue of flavoured water (water-based, slightly sweetened refreshment drink) segment is growing by about $10 billion annually. The companys Dasani brand water is the third best-selling bottled water in the US. Coca-Cola could leverage its strong position in the bottled water segment to take advantage of growing demand for flavoured water.

GROWING HISPANIC POPULATION IN U.S

Hispanics are growing rapidly both in number and economic power. As a result, they have
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become more important to marketers than ever before. In 2006, about 11.6 million US households were estimated to be Hispanic. This translates into a Hispanic population of about 42 million.

The US Census estimates that by 2020, the Hispanic population will reach 60 million or almost 18% of the total US population. The economic influence of Hispanics is growing even faster than their population. Nielsen Media Research estimates that the buying power of Hispanics will exceed $1 trillion by 2008- a 55% increase over 2003 levels.

Coca-Cola has extensive operations and an extensive product portfolio in the US. The company can benefit from an expanding Hispanic population in the US, which would translate into higher consumption of Coca-Cola products and higher revenues for the company.

THREATS INTENSE COMPETITION

Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages industry. The company faces intense competition in various markets from regional as well as global players. Also, the company faces competition from various non-alcoholic sparkling beverages including juices and nectars and fruit drinks. In many of the countries in which Coca-Cola operates, including the US, PepsiCo is one of the companys primary competitors. Other significant competitors include Nestle, Cadbury Schweppes, Groupe DANONE and Kraft Foods. Competitive factors impacting the companys business include pricing, advertising, sales promotion programs, product innovation, and brand and trademark development and
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protection. Intense competition could impact Coca-Colas market share and revenue growth rates.

DEPENDENCE ON BOTTLING PARTNERS

Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in whom it doesnt have any ownership interest or in which it has no controlling ownership interest. In 2006, approximately 83% of its worldwide unit case volumes were produced and distributed by bottling partners in which the company did not have any controlling interests. As independent companies, its bottling partners, some of whom are publicly traded companies, make their own business decisions that may not always be in line with the companys interests. In addition, many of its bottling partners have the right to manufacture or distribute their own products or certain products of other beverage companies.

If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners, then the partners may take actions that, while maximizing their own short-term profits, may be detrimental to Coca-Cola. These bottlers may devote more resources to business opportunities or products other than those beneficial for Coca-Cola. Such actions could, in the long run, have an adverse effect on Coca-Colas profitability. In addition, loss of one or more of its major customers by any one of its major bottling partners could indirectly affect Coca-Colas business results. Such dependence on third parties is a weak link in Coca-Colas operations and increases the companys business risks.

SLUGGISH GROWTH OF CARBONATED BEVERAGES

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US consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious. This has led to a decrease in the consumption of carbonated and other sweetened beverages in the US. The US carbonated soft drinks market generated total revenues of $63.9 billion in 2005, this representing a compound annual growth rate (CAGR) of only 0.2% for the five-year period spanning 2001-2005. The performance of the market is forecast to decelerate, with an anticipated compound annual rate of change (CAGR) of -0.3% for the five-year period 2005-2010 expected to drive the market to a value of $62.9 billion by the end of 2010.

Moreover in the recent years, beverage companies such as Coca-Cola have been criticized for selling carbonated beverages with high amounts of sugar and unacceptable levels of dangerous chemical content, and have been implicated for facilitating poor diet and increasing childhood obesity. Moreover, the US is the companys core market. Coca-Cola already expects its performance in the region to be sluggish during 2007. Coca-Colas revenues could be adversely affected by a slowdown in the US carbonated beverage market

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2.2 TRENDS AND FORCES

The Global Economic Recession Threatens Overall Demand
In 2008 and 2009, the global economy has fallen into a recession. Not just the United States but countries from all over the world have felt the impacts of the 2008 Financial Crisis. This may be a problem for Coke, which derives approximately 75% of its sales from outside North America. Still, the company has positioned itself well in international markets both organically and through acquisitions, such as that of Chinese juice maker Huiyuan for $2.4 billion. However the company was unsuccessful with its purchase of Huiyuan as it broke antitrust laws in China. On March 5, 2010, Coke's CEO said that emerging markets are bouncing back quicker than more developed markets.

New Aversion to Soda Threatens Main Business

74% of the Coca Cola Company's products are classified as carbonated soft drinks, making it particularly sensitive to changes in demand for CSD. Consumer demand for CSD has been negatively affected by concerns about health and wellness. This is true across most of KO's markets. There has been an increase in the number of regulations regarding CSD in the United States in response to the heightened desire for healthy food consumption.

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In 2006, many state public school systems banned the sale of soft drinks on their campuses. The Centre for Science and Public Interest proposed that a warning label be placed on all beverages containing more than 13g of sugar per 12-oz serving. This proposal would affect all non-diet, full calorie drinks produced by KO. These factors have driven a shift in consumption away from CSD to healthier alternatives, such as tea, juices, and water.

Within the CSD segment consumers have been moving away from sugared drinks, opting instead for diet beverages, which do not generally contain any sugar or calories. Though KO has been somewhat slow to respond to this shift in consumer preferences, it has recently begun to increase its development of both diet CSD and non-CSD beverages. KO is faced with the task of balancing the risk of new innovations with the low growth rates of established brands, a predicament for manufactures throughout the beverage industry.

Integrated Bottler Strategy Increases Flexibility

After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flagging beverage maker, one of the first areas that he targeted for improvement was KO's frayed relations with its extensive network of bottlers. Since consolidating all company-owned bottlers into the Bottling Investments division, Isdell has continued to increase KO's interest in its bottlers through stake purchases or outright buyouts. This strategy represents a weakening of the division between KO's production and distribution operations. Isdell believes that by combining production and distribution operations the company will have enhanced its ability to quickly respond to changing market conditions. In KO's 2007 Q3 Analyst call, Isdell credited the outright purchase of Coca-Cola Bottlers Philippines (CCBPI) for double-digit volume growth in that country. Additionally, KO has signed new agreements with many of its bottlers which allow them to distribute drinks produced by other companies.

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For example, Coca-Cola Enterprises (CCE) now distributes Arizona, a ready-to-drink tea made by Ferolito, Vultaggio & Sons, an American iced-tea company. Isdell sees these agreements as another way of taking advantage of the rapidly growing non-CSD market.

Bottled Water Falling Out of Favour

In Q3 2009, Dasani bottled water's revenues fell by double digits; this decrease is emblematic of the bottled water industry as a whole. In August 2009, the Wall Street Journal reported that sales of bottled water had fallen for the first time in five years. The combination of the recession and upper class consumers' increased environmental consciousness has lead many customers to cut back on bottled water in favour of tap water and reusable containers. Following this trend, at least one town in Washington state and one in Australia have outlawed the selling of bottled water within their city limits. In 2008, bottled water was the third most popular beverage (behind soda and milk), but compared to 2007, Americans consumption declined for the first time, down to 8.7 billion gallons from 8.8 billion gallons. Although this is a seemingly small decrease, industry experts don't expect bottled water to bounce back anytime soon.

Dollar Affects International Performance

Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar (USD). Although the company is based in the US, KO derives about 75% of its operating income from outside United States. Because of this, the company is very sensitive to the strength of the dollar. As foreign currencies weaken relative to the dollar, goods sold in foreign markets are suddenly
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worth fewer dollars back in the US, lowering earnings. Thus, if the dollar strengthens (as it did in the second half of 2008 and 2009), it has a negative effect on KO's earnings. CocaCola executives expect currency fluctuations to adversely affect 3Q09 operating income by 10-12% and 4Q09 operating income by high single digits. KO has broad exposure to foreign currencies and actively hedges a large portion of these to avoid wide swings in earnings from currency fluctuations. Although this hedging insulates from the potential downside of a strengthening dollar, it also limits larger gains from drastic downswings in the dollar's value.

Commodity Cost Fluctuations Affect Margins

The Coca-Cola Companys profitability can be affected both directly and indirectly by the costs of various production inputs. KO itself is responsible for purchasing the raw materials used to make its concentrates and syrups. Variations in the prices for these goods can affect the companys total cost of production as well as its profit margins. Changes in the production costs of bottlers can also impact KOs profitability, though in a more indirect way. If the raw materials necessary for bottling become more expensive, the bottler may be forced to drastically raise prices to compensate. Such a price increase would likely hurt KO, given the competitive nature of the non-alcoholic beverage industry, and provide a possible incentive for consumers to switch to other companies beverages. Aluminium, corn, and PET resin are three examples of such production goods used by bottlers that could have significant bearing on the Coca-Cola Companys profit margins. In 2007, the prices of these commodities rose drastically with general commodities bubble and dramatically pressured margins. They receded in 2008, but the possibility of another
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significant rise in Commodities represents a constant threat to profits.

2.3

PORTERS FIVE FORCES

Bargaining Power Of Customers.

Threat Of New Entrants

Bargaining Power of Suppliers

Competitive rivalry within an Industry

Threat Of Substitute Products

RIVALRY AMONG EXISTING FIRMS

The greatest competition that Coca-cola faces is from the rival sellers within the industry. Coca-Cola, Pepsi Co, and Cadbury Schweppes are among the largest competitors in this industry, and they are all globally established which creates a great amount of competition.
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Aside from these major players, smaller companies such as Cott Corporation and National Beverage Company make up the remaining market share. All five of these companies make a portion of their profits outside of the United States.

Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta, and Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c). However, CocaCola has higher sales in the global market than PepsiCo, PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power struggle for years (Murray, 2006c). Coke has been more dominant with a 53% of market share as in 1999 compared to Pepsi with a market share of 21%.

According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market share has increased to 30.8%, while the Coca-Cola Company's has decreased to 42.7% due to Pepsi marketing schemes still the higher large gap between the market share can be attributed to the fact that Coca-Cola took advantage of Pepsi entering the market late and has set up its bottler's and distribution network especially in developed markets.

"The Coca-Cola Company" is the largest soft drink company in the world. Every year 800,000,000 servings of just "Coca-Cola" are sold in the United States alone. Bottling plants with some exceptions are locally owned and operated by independent business people who are native to the nations in which they are located. Coca-Cola manufactures, distributes and markets non-alcoholic beverage concentrates and syrups, including fountain syrups.

It supplies concentrates and beverage bases used to make the products and provides management assistance to help it's bottler's ensure the profitable growth of their business.

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This has put Pepsi at a significant disadvantage compared to US market. Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However, exceptions include India, Saudi Arabia and Pakistan.

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered, The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA).

In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed. PepsiCo bought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company returned in pursuance of India's Liberalization policy. In 2005, The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. Coca-Cola India's market share was 52.5%.

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the Cold War ended. In 1972, Pepsi Co Company struck a barter agreement with the government of the Soviet Union, in which Pepsi Co was granted exportation and Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola.

This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R. Pepsi, as one of the first American products in the Soviet Union, became a symbol of that relationship and the Soviet policy.

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Brand name loyalty is another competitive pressure. The Brand Keys Customer Loyalty Leaders Survey (2004) shows the brands with the greatest customer loyalty in all industries. Diet Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal customers to their brands. The new competition between rival sellers is to create new varieties of soft drinks, such as vanilla and cherry, in order to increase sales and getting new customers. Pepsi is however trying to counter this by competing more aggressively in the emerging economies where the dominance of Coke is not as pronounced, with the growth in emerging markets significantly expected to exceed the developed markets, rivalry in international market is going to be more pronounced.

Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke, supporting Pepsi's positioning as "The Choice of a New Generation." In 1975, Pepsi began showing people doing blind taste tests called Pepsi Challenge in which they preferred one product over the other. Pepsi started hiring more popular spokespersons to promote their products.

In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars, Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions of packages and cups. They could redeem the points for free Pepsi lifestyle merchandise. After researching and testing the program for over two years to ensure that it resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success.

Tens of millions consumers participated. Pepsi outperformed Coke during the summer of the Atlanta Olympics, held at Coke's hometown where Coke was the lead sponsor for the Games. Due to its success, the program was expanded to include Mountain Dew into Pepsi's international markets worldwide. The company continued to run the program for many years, continually innovating with new features each year.
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Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi Stuff in 2005 & Coca-Cola retaliated with Coke Rewards. This cola war has now concluded, with Pepsi Stuff ending its services and Coke Rewards still offering prizes on their website. Both were loyalty programs that give away prizes and product to consumers after collecting bottle caps and 12 or 24 pack box tops, then submitting codes online for a certain number of points. However, Pepsi's online partnership with Amazon allowed consumers to buy various products with their "Pepsi Points", such as mp3 downloads. Both Coca-Cola and coke previously had a partnership with the iTunes Store.

POTENTIAL ENTRANTS:
New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola and Pepsi Co dominate the industry with their strong brand name and great distribution channels. In addition, the soft-drink industry is fully saturated and growth is small. This makes it very difficult for new, unknown entrants to start competing against the existing firms.

Another barrier to entry is the high fixed costs for warehouses, trucks, and labour, and economies of scale. New entrants cannot compete in price without economies of scale. These high capital requirements and market saturation make it extremely difficult for companies to enter the soft drink industry therefore new entrants are not a strong competitive force. Capital requirements for producing, promoting, and establishing a new soft drink traditionally have been viewed as extremely high. According to industry experts, this makes the likelihood of potential entry by new players quite low, except perhaps in much localized situations that matter little to Coke or Pepsi. Yet, while this view may reflect conventional wisdom, some industry observers question whether a new time is coming, with 'new age' beverages selling to well-informed and health-informed and health-conscious consumers.
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This issue was beginning to grab the attention of both Coke and Pepsi in the summer of 1992, when they both were not able to explain a drop in their June 1992 sales.

SUBSTITUTES:
Numerous beverages are available as substitutes for soft drinks. Citrus beverages and fruit juices are the more popular substitutes. Availability of shelf space in retail stores as well as advertising and promotion traditionally has had a significant effect on beverage purchasing behaviour. Overall total liquid consumption in the United States in 1991 included CocaCola's 10% share of all liquid consumption.

For years the story in the non-alcoholic sector centred on the power struggle between Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavours and looking to noncarbonated beverages for growth.

Substitute products are those competitors that are not in the soft drink industry. Such substitutes for Coca-Cola products are bottled water, sports drinks, coffee, and tea, juices etc. Bottled water and sports drinks are increasingly popular with the trend to be a more health conscious consumer. There are progressively more varieties in the water and sports drinks that appeal to different consumer's tastes, but also appear healthier than soft drinks.

In addition, coffee and tea are competitive substitutes because they provide caffeine. The consumers who purchase a lot of soft drinks may substitute coffee if they want to keep the

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caffeine and lose the sugar and carbonation.

Blended coffees are also becoming popular with the increasing number of Starbucks, Barista and CCD stores that offer many different flavours to appeal to all consumer markets. It is also cheap for consumers to switch to these substitutes making the threat of substitute products very strong (Datamonitor, 2005).

The growth rate has been recently criticized due to the market saturation of soft drinks. Datamonitor (2005) stated, Looking ahead, despite solid growth in consumption, the global soft drinks market is expected to slightly decelerate, reflecting stagnation of market prices. The change attributed to the other growing sectors of the non-alcoholic industry including tea & coffee is 11.8% and bottled water is 9.3%. Sports drinks and energy drinks are also expected to increase in growth as competitors start adopting new product lines.

Profitability in the soft drink industry will remain rather solid, but market saturation has caused analysts to suspect a slight deceleration of growth in the industry (2005). Because of this, soft drink leaders are establishing themselves in alternative markets such as the snack, confections, bottled water, and sports drinks industries.

In order for soft drink companies to continue to grow and increase profits they will need to diversify their product offerings. So in order to compete with the substitutes industry, cocacola has diversified from just carbonated drink industry to other substitute and so have other brands like Pepsi, Dr pepper/Snapple.

BARGANING POWER OF BUYERS:

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Individual consumers are the ultimate buyers of soft drinks. However, Coke and Pepsi's real 'buyers' have been local bottlers who are franchised -or are owned, especially in the case of Coke- to bottle the companies' products and to whom each company sells its patented syrups or concentrates. While Coke and Pepsi issue their franchise, these bottlers are in effect the 'conduit' through which these international cola brands get to local consumers Through the early 1980's, Coke's domestic bottlers were typically independent family businesses deriving from franchises issued early in the century. Pepsi had a collection of similar franchises, plus a few large franchisees that owned many locations. Until 1980, Coke and Pepsi were somewhat restricted in owning bottling facilities, which was viewed as a restraint of free trade. Jimmy Carter, a Coke fan, changed that by signing legislation to allow soft-drink companies to own bottling companies or territories, plus upholding the territorial integrity of soft-drink franchises, shortly before he left office. Also, the three most important channels for soft drinks are supermarkets, fountain sales, and vending. In 1987, supermarkets accounted for about 40% of total U.S. soft drink industry sales, fountain sales represented about 25%, and vending accounted for approximately 13%. Other retailers represent the remaining percentage. While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of bottling companies, Coca-Cola uses its own network of wholesalers for their fountain syrup distribution, and Pepsi distributes its fountain syrup through its bottlers.

BARGANING POWER SUPPLIERS

The principal raw material used by the soft-drink industry in the United States is high fructose corn syrup, a form of sugar, which is available from numerous domestic sources. The principal raw material used by the soft-drink industry outside the United States is sucrose. It likewise is available from numerous sources.
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Another raw material increasingly used by the soft-drink industry is aspartame, a sweetening agent used in low-calorie soft-drink products. Until January 1993, aspartame was available from just one source -the NutraSweet Company, a subsidiary of the Monsanto Company- in the United States due to its patent, which expired at the end of 1992. Coke managers have long held 'power' over sugar suppliers. They view the recently expired aspartame patents as only enhancing their power relative to suppliers.

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2.4

SWOT ANALYSIS OF COCA-COLA INDIA

STRENGTHES
Distribution Network. Strong Brand Image. Low Cost of Operation.
SWOT ANALYSIS

WEAKNESSES
Health Care Issues. Small Scale Sector Reservations.

OPPORTUNITIES
Large Domestic Markets. Export Potential. High Income among People.

THREATS
Imports. Tax & Regulatory Sector. Slowdown in Rural Demand.

Fig 2.3 SWOT ANALYSIS OF COCA-COLA INDIA

STRENGTHS DISTRIBUTION NETWORK

The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sale yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen,

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700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10 tonne to open bay three wheelers that can navigate the narrow alleyways of Indian cities constantly keep Coca-Cola brands available in every nook and corner of the Countrys remotest areas.

STRONG BRAND IMAGE

Coke has its history of about more than a century and this prolonged sustenance has definitely added to the brand image in the minds of the consumers and to its wallet. The products produced and marketed by Coca-Cola India have a strong brand image. Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the brand name of Coca-Cola Company as a whole. Coca Cola India for the first time has come out with corporate campaign in India targeting its stakeholders. The multimedia campaign Little Drops of Joy " is aimed at raising the corporate brand image of the company which took a heavy beating with a number of controversies it faced in different domains. The new campaign is a part of a complete restructuring exercise in the Indian arm of this global change. Coca Cola recently announced its new corporate strategy called the 5 Pillar" strategy. The company has identified the 5 pillars as People. Planet. Portfolio. Partners. Performance.

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 LOW COST OF OPERATIONS In light of the companys Affordability Strategy, Coca-Cola went about bringing a cost-focus culture in the company. This included procurement Efficiencies through focus on key input materials, trade discipline and control and proactive tax management through tax incentives, excise duty reduction and creating marketing companies. These measures have reduced the costs of operations and increased profit margins.

WEAKNESSES

HEALTH CARE ISSUES

In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non- governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that can contribute to cancer and a breakdown of the immune system.

SMALL SCALE SECTOR RESERVATIONS

The Companys operations are carried out on a small scale and due to Government restrictions and red-tapism, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.
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OPPORTUNITIES LARGE DOMESTIC MARKETS

The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market.

EXPORT POTENTIAL The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.

HIGHER INCOME AMONG PEOPLE Development of India as a whole has lead to an increase in the per capita income thereby
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causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. Coca-Cola Company can take advantage of such a situation and enhance their sales.

THREATS IMPORTS
As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.

TAX & REGULATORY SECTOR

The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems.

SLOWDOWN IN RURAL DEMAND The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to

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conventional advertising media. All these problems might lead to a slowdown in the demand for the companys products.

Chapter 3
Research Methodology

Objective Of Study

To assess the service level of Maaza and its competitors among the retailers in Nagpur City. Find what service is perceived by the retailers. The reason behind the necessity of service. Suggestions straight from the retailers.

SCOPE OF THE STUDY:This study will show an analyze the various service strategies and marketing strategy of Superior Drinks Pvt. Ltd. The main objective is to study Effectiveness of Service of Superior Drinks Pvt. Ltd. Nagpur for Coca-cola in Nagpur. The data collected has been subjected to analysis and interpretation on the basis of objective and suggestions have been given at the end, which will help the company to improve their strategies for taking steps for set up the Service strategy , Brand preference strategy, marketing strategy and competitive advantage over the competitors, It
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also helps in identify the problems of the Retailers to company to make improvement in their Service Strategies and Maaza as their brand in the market competing against others.

SOURCES OF DATA
The data has been collected from both primary as well as secondary sources.

PRIMARY DATA:The primary data has been collected simultaneously along with secondary data for meeting the established objectives to provide the solution for the problem identified in this study. The methods that have been used to collect the primary data are: Questionnaire. Personal Interview.

SECONDARY DATA:It is defined as the data collected earlier for a purpose other than one currently being pursued. As a researcher I have scanned lot of sources to get an access to secondary data which have formed a reference base to compare the research findings. Secondary data in this study has provided an insight and forms an outline for the core objectives established. The various sources of secondary data used for this study are: News papers. Text books.
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 Marketing reports of the company. Internet.

SURVEY MEASURING TOOLS & TECHNIQUES

The primary tool for the data collection used in this study is the respondents response to the questionnaire given to them. The various research measuring tools used are: Questionnaire. Personal interview. Tables. Percentages. Pie-charts. Bar-charts.

SAMPLING DESIGN
An integral component of a research design is the sampling plan. Especially it addresses three questions: Whom to survey (sample Unit), how many to survey (Sample Size) and how to select them (sampling Procedure). Making the census study of the entire universe will be impossible on the account of limitations of time and money. Hence sampling becomes inevitable. A sample is only his portion of population. Properly done, sampling produces representative data of the entire population.

SAMPLE SIZE:-

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i.

Through questionnaire 254 respondents.

SAMPLING TOOL:Questionnaire was used as a main tool for the collection of data, mainly because it gives the chance for timely feedback from respondents. Moreover respondents feel free to disclose all necessary detail while filling up a questionnaire. Respondents seeking any clarification can easily be sorted out through tool.

Sampling Tools Questionnaire

Respondents Retailers Total 254 254

Number

Table 1.7

FIELD WORK:The study was conducted in Nagpur City. The questionnaires were given to the respondents to fill in order to get their feedback. Questions were read out to the respondents and the answers were noted.

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LIMITATIONS OF THE STUDY:The main purpose of this study is get idea about the preference of the customers towards various Coca-Cola products. But there are certain factors which affects this study they are as follow: Since the sampling procedure was judgmental, the sample selected may not be true representative of the population.

Economic and market conditions are very unpredictable (Present and future).

The project duration is limited to 8 weeks so it limits the area of study.

The study was confined to Nagpur and other nearby areas , due to which the result cannot be applied universally.

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3.1

Report Analysis:

The objective of the survey is to assess the service level of Maaza and its competitors in Nagpur city. The survey conducted in Nagpur city area, from a population of 2016 retailers, sample of 254 retailers were surveyed and opinion regarding service and its different aspect like ideal service according to retailer, timely delivery, fill rate, scheme communication, credit policy, frequency of delivery, fresh and replacement policy was taken to see where the mango based juice drinks manufacturers stood.

SERVICE
3% 2% 2%

DELIVERY TIMELY DELIVERY 42% 51% FULL RANGE FREQUENCY OF DELIVERY MISC.

Fig : 3.1 What is the meaning of Service according to retailers ?

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In the Above Pie Chart we have seen that, what is their understanding of service. After analyzing the review of retailers we can see that: 51 % retailers understanding the meaning of service as delivery, by delivery they mean to supply of stock at the shop. 42% of the retailers meant service as timely delivery; by this they meant delivery of fill rate before stock runs out and the buffer date between manufacturing and delivery should be less. 3 % of the retailers thought availability of full range, full range or fill rate is the required amount of various SKU of products by the retailer; especially in season in case of beverages are very important. 2% of the retailers said frequency of delivery as a service, the interval duration between the deliveries should be less. And lastly 2% of retailers thought service to be as prompt after sales service, sales promotion and advertising, efforts from the companys side for the retailers side to boost the sales and communication from company regarding various offers and schemes. Ideal service according to the retailers? 35% (88) of the retailers said that timely delivery of fill rate as the most important aspect ideal service, according to them availability of fill rate, that is the requirement of products by the retailers, must be delivered before the stock runs out.
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20% (50) of the retailers thought communication of schemes from the company as another aspect of service that a company should provide, among these 14 % (7) said that the rewards of the schemes must be honoured the distributors.

19% (48) of the retailers said that prompt maintenance of the visicular should be done by the company so that there is no problem in storage of beverages.

.15% (38) of the retailers responded that meeting seasonal demand as another factor of ideal service that is availability of the product when the demand goes up.

8% (21) of the retailers thought that fill rate delivery should always be maintained by the company.

9% (22) of the retailers said that advertising measures like display chart of prices, hoarding above shop, other displays to attract consumer as a part of ideal service.

9% (23) of the retailers said that timely delivery that is good frequency of delivery as part of ideal service

7% (18) of the retailers referred communication of the replacement policy in event of damaged product, expired product by the company as a factor in ideal service.

6% (15) of the retailers said that a decent profit margin should be given to retailers, so that they are not forced to increase the price of the product.

5% (12) of the retailers said that credit should be given to them as part of service by the company, so that they can purchase in larger volumes.

4% (10) of the retailers responded that proper communication from company should be maintained to know the problems of the retailers.

4% (10) of the retailers referred providing visicular (refrigerator) and 2% (5) said that provision of bigger visicular to the retailers as a part of ideal service. 3% (8) of the retailers said that providing clean bottles and quality product as part of ideal service.
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Ideal service from Beverage Companies? The ideal service of Beverage Company for retailers can be summed up as follows:

Timely delivery of fill rate, retailers major concern is they should get the delivery of fill rate, i.e. the required range of beverage (glass bottle, pet bottle, tetra pack, availability of different beverages) timely. Also the buffer period between date of manufacturing and date it reaches the retailers should be less.

Seasonal availability, during season when demand of beverages go up, company should have adequate stock to meet the demand.

Communication of Schemes, schemes should be communicated to the retailers by the company.

Replacement Policy, company should communicate to the retailers about the replacement policy in event of any product being defective, expiry dated.

Prompt maintenance of the visi-cooler should be done to avoid from products getting damaged.

The frequency of delivery to the retailers should be good.

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Which juice company provides the best service to you?

Product rated on the basis of service provided.

2% 0% 13% Maaza Frooti 19% Slice Can't Say 66% Mango Sip

Fig : 3.2

In the above Pie chart we have represented brands which are mostly preferred by retailers on the basis service level. 66% of retailers prefer to sell Maaza, because of its service provided to the retailer.19% prefer to sell Frooti being the 2nd best choice because of its service. 13% of retailers preferred to sell Slice .2% of retailers didnt stock any of the mango based fruit drink. From the above data we can state that Maaza is the market leader in mango based fruit drink in Nagpur city.

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Rating of the service provided by Coca-Cola.

Services
Positive 200 205 127126 54 0 49 0 1 84 84 96 43 1 19 0 Negative Cant Say 210 235 131 66 57

Fig : 3.3 Total no. of retailers-254, Rating of the service provided by Pepsi Co. Fig : 3.4

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Rating of service of Pepsi

Positive 125 126 90 54 19 0 18 0 0 71 41 32 17 67 37 40 0 6 0 Negative Can't Say 127 138

Total no. of retailers 254, product available-144, unavailable-110 Rating of the service provided by Frooti. Fig : 3.5

Rating of service of Parle Agro.

Positive 136 137 128 74 53 14 0 13 22 0 0 23 14 3 6 0 12 negative Can't Say 133 144 89 49

Total no. of retailers 254, product available-150, unavailable-104

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Comparison of services rendered by Coca-Cola (Maaza), Pepsi (Slice) and Parle Agro (Frooti). Fig : 3.6 1. Timely Delivery:

Timely Delivery of Coca-Cola (Maaza)

Available Not Available Positive Negative

194, 77% 6, 2% 248, 98% 54, 21%

Total no. of retailers-254, product available-248, unavailable-6

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Timely Delivery of PepsiCo. (Slice)

Available Not Available Positive Negative

110, 43%

144, 57%

125, 49% 19, 8%

Fig : 3.7 Total no. of retailers-254, product available-144, unavailable-110

Timely Delivery
Available Not Available Positive Negative

104, 41%

150, 59%

136, 54%

14, 5%

Fig : 3.8 Total no. of retailers-254, product available-150, unavailable-104 From the above three Pie-Chart we can see the rating of service, how retailers have rated timely delivery of each company.

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77% of retailers responded positively for Coca-Colas timely delivery and 21% responded negatively.

49% of retailers responded positively for PepsiCos timely delivery and 8% responded negatively.

54% of retailers responded positively for Parle Agros timely delivery and 5 % responded negatively.

Fill Rate: Fig : 3.9

Fill Rate of Coca-Cola (Maaza)

Available Not Available Positive Negative

6, 3%

248, 97% 49, 19%

199, 78%

Total no. of retailers-254, product available-248, unavailable-6 Fig : 3.10

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Fill Rate of PepsiCo (Slice)

Available Not Available Positive Negative

126, 50% 110, 43% 144, 57%

18, 7%

Total no. of retailers-254, product available-144, unavailable-110

Fill Rate of Parle Agro. (Frooti)

Available Not Available Positive Negative

137, 54% 104, 41% 150, 59%

13, 5%

Fig : 3.11 Total no. of retailers-254, product available-150, unavailable-104 From the above three Pie-Chart we can see the rating of service, how retailers have rated Fill Rate of each company.

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78% of retailers responded positively about the fill rate of Coca-Cola (Maaza) and 19% responded negatively.

50% of the retailers responded positively about the fill rate of Pepsi Co (Slice) and 7% responded negatively.

54% of the retailers responded positively about the fill rate of Parle Agro. (Frooti) and 5% responded negatively.

3. Communication of Schemes:

Communication of Schemes of Coca-Cola (Maaza)

Available Not Available Positive Negative Can't Say

121, 48% 6, 2% 248, 98% 1, 0% 126, 50%

Fig : 3.12 Total no. of retailers-254, product available-248, unavailable-6 Fig : 3.13

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Communication of Schemes of PepsiCo (Slice)

Available Not Available Positive Negative

90, 36% 110, 43% 144, 57% 54, 21%

Total no. of retailers-254, product available-144, unavailable-110

Fig : 3.14

Communication of Schemes of Parle Agro (Frooti)

128, 50% 104, 41% 150, 59%

Available Not Available Positive Negative

22, 9%

Total no. of retailers-254, product available-150, unavailable-104 From the above three Pie-Chart we can see the rating of service, how retailers have rated Communication of Schemes of each company.

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48% of retailers responded positively about the Communication of Coca-Cola (Maaza) and 50% responded negatively.

36% of the retailers responded positively about the Communication of Schemes of Pepsi Co (Slice) and 21% responded negatively.

50% of the retailers responded positively about the Communication of Schemes Parle Agro. (Frooti) and 9% responded negatively.

4. Credit Policy: Fig : 3.15

Credit Policy of Coca-Cola (Maaza)

Available Not Available Positive Negative can't say

78, 30% 6, 2% 258, 98% 96, 36%

84, 32%

Total no. of retailers-254, product available-248, unavailable-6

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Fig : 3.16

Credit Policy of PepsiCo (Slice)

Available Not Available Positive Negative can't say

110, 43%

144, 57%

32, 13 % 41, 71, 28% 16 %

Total no. of retailers-254, product available-144, unavailable-110

Fig : 3.17

Credit Policy of Parle Agro (Frooti)

Available Not Available Positive Negative 23, 9% can't say

104, 41%

150, 59%

53, 21 %

74, 29%

Total no. of retailers-254, product available-150, unavailable-104

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From the above three Pie-Chart we can see the rating of service, how retailers have rated Credit Policy of each company. 30% of retailers responded positively about the Credit Policy Coca-Cola (Maaza) and 32% responded negatively and 36% of retailers prefer to do in Cash only. 16% of the retailers responded positively about the Credit Policy of Pepsi Co (Slice) and 13% responded negatively and 28% prefer to do in Cash. 21% of the retailers responded positively about the Credit Policy of Parle Agro. (Frooti) and 9% responded negatively and 29% prefer to deal in Cash only.

5. Frequency of Delivery

Fig : 3.18

Frequency of Delivery of Coca-Cola (Maaza)

Available Not Available Positive Negative can't say

104, 67% 6, 4% 148, 96% 1, 1% 43, 28%

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Total no. of retailers-254, product available-248, unavailable-6 Fig : 3.19

Frequency of Delivery of PepsiCo (Slice)

Available Not Available Positive Negative

127, 50% 110, 43% 144, 57%

17, 7%

Total no. of retailers-254, product available-144, unavailable-110

Fig : 3.20

Frequency of Delivery of Prale Agro (Frooti)

Available Not Available Positive Negative Can't say

133, 52% 104, 41% 150, 59%

3, 1%

14, 6%

Total no. of retailers-254, product available-150, unavailable-104

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From the above three Pie-Chart we can see the rating of service, how retailers have rated Communication of schemes of each company. 67% of retailers responded positively about the Frequency of Delivery (Maaza) and 28% responded negatively and 1% did not respond to the question. 50% of the retailers responded positively about the frequency Of Delivery of Pepsi Co (Slice) and 7% responded negatively. 52% of the retailers responded positively about the Frequency of Delivery of Parle Agro. (Frooti) and 6% responded negatively and 1% didnt respond about the question.

5. Latest Product (Fresh): Fig : 3.21

Fresh of Coca-Cola (Maaza)

Available Not Available positive negative

6, 4%

148, 96% 29, 19%

119, 77%

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Total no. of retailers-254, product available-248, unavailable-6

Fresh of PepsiCo (Slice)

Available Not Available positive negative

138, 54% 110, 43% 144, 57%

6, 3%

Total no. of retailers-254, product available-144, unavailable-110 Fig : 3.22

Fresh of Parle Agro (Frooti)

Available Not Available positive negative

144, 57% 104, 41% 150, 59%

6, 2%

Fig : 3.23 Total no. of retailers-254, product available-150, unavailable-104

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From the above three Pie-Chart we can see the rating of service, how retailers have rated Communication of schemes of each company. 77% of retailers responded positively about the Fresh of Coca-Cola (Maaza) and 19% responded negatively. 54% of the retailers responded positively about the Fresh of Pepsi Co (Slice) and 3% responded negatively.

57% of the retailers responded positively about the Fresh of Parle Agro. (Frooti) and 2% responded negatively

7. Replacement Policy:

Replacement Policy of Coca-Cola (Maaza)

Available Not Available Positive Negative can't say

125, 49% 6, 2% 248, 98% 57, 23% 66, 26%

Total no. of retailers-254, product available-248, unavailable-6 Fig : 3.24

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Replacement Policy of PepsiCo (Slice)

Available Not Available Positive Negative can't say

110, 43%

144, 57%

67, 26%

37, 15% 40, 16%

Total no. of retailers-254, product available-144, unavailable-110 Fig : 3.25

Replacement Policy of Parle Agro (Frooti)

Available Not Available Positive Negative can't say

12, 5% 89, 35% 104, 41% 150, 59% 49, 19%

Total no. of retailers-254, product available-150, unavailable-104 Fig : 3.26

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From the above three Pie-Chart we can see the rating of service, how retailers have rated Replacement Policy of each company. 49% of retailers responded positively about the Replacement Policy of Coca-Cola (Maaza) and 26% responded negatively and 23% never occurred. 26% of the retailers responded positively about the Replacement Policy of Pepsi Co (Slice) and 15% responded negatively and 16% never occurred. 35% of the retailers responded positively about the Replacement Policy of Parle Agro. (Frooti) and 12% responded negatively and 19% never occurred.

3.2 Conclusion & SUGGESTIONS

It can be concluded from the above analysis of the survey which was conducted among the retailers that they by the term service is timely delivery of goods, it was termed most important among the retailers as they wanted good should be made available to them when they demand the product, equally some retailers thought that just delivery of goods at their shop means service. By ideal service level retailers most meant timely delivery of fill rate by the company. We also found that Maaza was mostly preferred by most of the retailers among the mango based fruit drink and the next best alternative to it was Frooti. We found that Coca-Cola has larger market share than Pepsi and Parle and we could see the difficulties in meeting the demand of the retailers especially during summer season of glass bottles. Retailers preferred that the provision should be made by the company for communication of schemes, retailers complained that distributors were not communicating about schemes to
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them and they were biased towards retailers, they were providing to some retailers and not to some at same time this was especially in case Coca-Cola .We could see that Parle successfully captured market share by communicating and disseminating schemes. As mentioned earlier the most important aspect of service for retailer is timely delivery of goods, Coca-Cola has set up the benchmark in delivery of goods to the retailers .Coca-Cola has to improve its delivery system compared to other two because it is having larger retailer base.

The suggestions made in this section are based on the market study conducted as part of Coca-Cola India. The suggestions are arranged in order of priority, highest first. Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer.

The company should make hindrance free arrangement for its customers/retailers to make any feedback or suggestions as and when they feel.

The company should focus to bring some more flavors like health drinks and other lowcalorie offerings. Coca-Cola India can also introduce some fruit based drinks, as it has already entered the energy drink arena with Burn.

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 Coca-Colas distribution channel is mostly through retail. Whereas the competitors also concentrates more on the multiplexes, pubs and restaurants. Coca-Cola should try to increase their distribution in these areas.

The company must keep a watch on its primary competitors in market in order to be able to compete with them. The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers as well as from the market and try to solve it without any delay to establish its own good credibility.

A strong watch should be kept on distributors so that the goodwill of the BRAND doesnt get affected.

BIBLIOGRAPHY BOOKS: Marketing Management Philip Kotler. (PEARSON EDUCATION)

Research Methodology Kothari. ( International Publisher )

WEBSITES: www.thecoca-colacompany.com www.magindia.com www.coca-colaindia.com

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OTHERS Annual report of Coca-Cola 2008. Annual report of Coca-Cola 2009. Environment Report 2010-2011

ANNEXURE
QUESTIONNAIRE
We are conducting a survey to assess the service level of Maaza and its competitors among the retailers in Nagpur City as a part of our summer internship project. So, we request you to kindly cooperate, in filling this questionnaire. We assure you that the information provided would be used for academic purpose. Name: Address: Contact no. Outlet name: Distributers name: E-mail:

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1. What is the meaning of service according to you? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ______

2. What is ideal service according to you?

3. Which juice company provides the best service to you? ________________________________________________________________________ __

4. Please rate these companies as per their service levels/standards. 1. 2. 3. 4. 5. 6. 7.

5. Please rate the service of Coca-Cola(Maaza) as follows: (1=positive, 0=negative) 1. Timely delivery ______

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2. Delivery of Full Range/Full Rate_______ 3. Communication of schemes________ 4. Credit policy_______ 5. Frequency of delivery________ 6. Latest product(Fresh)________ 7. Replacement of old/damaged product_______

6. Please rate the service as follows: (1=positive, 0=negative) Attribute PepsiCo(slice) Parle Agro(frooti) Godrej(jumpin) Surya Food & Agro(treat) Timely delivery Delivery of Full Range Communication of schemes Credit policy

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Frequency delivery

of

Latest product Replacement of old/damaged product

7. Any suggestions to improve the service level? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ______

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Thank you!

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