A Report On The study of Opportunities of 300 ml cans in Eat and Dine 2 Market in Ernakulam For

The Hindustan Coca cola Private Ltd

Submitted To Amity University In partial fulfillment of the Master of Business Administration Under the guidance of Ashish pillai By Vishnu B Shenoy Reg No:A3110191101025

Batch : 2011-2013

AMITYGLOBALBUSINESSSCHOOL RAJAJI ROADKOCHI-35

AMITY GLOBAL BUSINESS SCHOOL KOCHI

CERTIFICATE
This is to certify that the project entitled Opportunities of 300ml can in Eat and dine 2 Markethas been successfully carried out by Ms Vishnu B Shenoy in partial fulfillment of Master of Business Administration under my guidance during academic year 2011-2013

DATE:

Mr. Ashish pillai (Internal Guide)

AMITY GLOBAL BUSINESS SCHOOL KOCHI

CERTIFICATE
This is to certify that the project entitled Opportunities of 300ml cans in Eat and Dine 2 Market has been successfully carried out by Vishnu B Shenoy in partial fulfillment of Master of Business Administration under my guidance during academic year 2011-2013

DATE:

MrBijuVithayathil (Dean)

ACKNOWLEDGEMENT

I wish to sincerely thank HINDUSTAN COCA COLA PRIVATE LTDfor giving me this opportunity to do my summer internship project with them. I would to like to thank Prof BijuVithayathil, Dean, Amity Global Business School Cochin for his valuable instructions regarding the project. I would like to acknowledge the role of my project guide in the industry, MR SUBHASH, Marketing Manager, panampilly nagar, kochi for his valuable assistance and support. I would like to acknowledge the help of my project guide in the college, Prof. Ashish pillai who inspired and guided me throughout the project. I would also like to thank whole staff of HINDUSTAN COCA COLA, Panampilly nagar, kochi for helping me whenever I needed their help. I like to thank my family and friends for constant support and encouragement. Above all, I like to thank the Almighty whose grace ultimately helped me in this endeavor of mine.

ABSTRACT

The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries. The company only produces syrup concentrate which is sold to various bottlers throughout the world; in India these rights are held with Hindustan Coco-Cola Beverages Private Limited.

This Report Details the opportunities for 300 ml CANS in Eat and Dine 2 Market undertaken by Hindustan Coca-Cola Beverages Pvt. Ltd in Ernakulam.

TABLE OF CONTENTS

SERIAL No. 1. 1.1. 1.2. 2.

TOPIC
INTRODUCTION Company Profile Current Marketing Strategies Direct Store Distribution (DSD) model

PAGE No.

2.1. 3. 4. 5. 6. 7.

Benefits and Limitations RESEARCH METHODOLGY

DATA ANALYSIS FINDINGS AND RECOMMENDATIONS CONCLUSION BIBLIOGRAPHY ANNEXURES

INTRODUCTION

Company Profile:

The Coca-Cola Company entered India through its wholly owned subsidiary, Coca-Cola India Private Limited and launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 1.3 million retailers. Today, our brands are the leading brands in most beverage segments. The Coca-Cola Companys brands in India include CocaCola, Fanta Orange, Fanta Apple, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Maaza Milky Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and Nestea Iced tea, the Georgia Gold range of teas and coffees and Vitingo.

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt. Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt. Ltd; thirteen authorized bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers who are authorized to use these to produce our portfolio of beverages. These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make these beverages available to consumers across India.

Current Distribution Strategies

Now in current world there are many ways in reaching customer and also due to big competition among various competitors the company need to improve the marketing strategies in order to increase the customers or sales of company. At present Hindustan Coca-Cola Beverages Pvt. Ltd. has segregated its overall marketing activities into three types. They are

1. Direct Store Distribution (DSD) model

In this model there is no wholesaler or distributor in between company and retailers. The company sells product directly to retailers outlets from warehouses.

2. Indirect Market model

The company has sub-categorized this model into,Modern Trade like Reliance Fresh and Birla group More

3 Strategic Distribution Partner (SDP) modelHere, the company reaches out to its retailers through a local agent in each specific

area who receive commissions for carrying out the companys distribution responsibility in remote areas.

Direct Store Distribution (DSD) model

Hindustan Coca-Cola Beverages Pvt. Ltd. employ various distribution strategies across the nation. The most recently adopted distribution strategy is the Direct Store Distribution Model.

There are 3 Types of DSD models, they are

1. Eat and Dine Market 1(E and D 1)- This include Retail outlets where there is no facilities to sit and eat include bakery, small outlets where there is no chairs and tables for customers, this model is mostly for take away. 2. Eat and Dine Market 2 (E and D 2)- This include Retail outlets where there are

facilities for customers to sit and eat include Bars, Restaurants etc

Benefits of E and D 1
This model helps to reach out small retail outlets near roadsides and also bakery where more people use to purchase the bakery items like cake, pastries etc so it would increase sales.Common man usually visits small shops rather than restaurants , so product can reach to common man too. Can expand market.

Benefits of E and D 2
This model is most important model because middle class people usually visits restaurants so we could reach out middle class and top class people.In bars need of soft drinks is more along with liquor so that we could increase the distribution or sales.There more chance of increasing profit in this model

Limitations of E and D 1
Supply problem- There are many supply problems which include Time, place etc Damage of product More risk which include cash transactions and other problems Less profit than E and D 2 Unavailability of various products like fanta, thumps up etc when needed this may affect sales. Retailers personal problems

Limitations of E and D 2
Damage problem Misusing cooler by using various liquors in cooler Financial problems like credit facility and other problems Unavailability of various products like fanta, thumps up etc when may affect sales needed this

Research Methodology Objectives:

The Report details the Opportunities of 300ml CANS in EAT and DINE 2 Markets undertaken by Hindustan Coca-Cola Beverages Pvt. Ltd and this study was done in Ernakulam. Includes Fortkochi, vaduthala , marine drive, chittoor road, kadavanthara and palluruthy of Ernakulam District. Main objective of this study is to covert RGB 300ml bottles to 300ml cans and also to promote or increase sales of 300 ml cans in Bars and Restaurants. Main objective is to Create entry in Bars and restaurants which are not using cans and my secondary objective is atleast to sale various products of company which include RGB,PETBOTTLES,SODA,MINERAL WATER etc

Sampling Design:
The sampling method for this study is convenience sampling, because it is the most ideal technique to document the quality of products of the company. Convenience sampling is a nonprobability sampling design in which information or data for the research are gathered from the members of the population that are conveniently accessible to the researcher.

Sample Size:
In this case, the members used for the sampling method are purchase manager of restaurants and bars and the sample size that is proposed for the study is 85.

Data Collection Tools

In order to ascertain the opportunities of 300ml cans under E and D 2 model, the research tool that is being adopted are the questionnaire and schedules. A suitable questionnaire was prepared in order to provide data regarding the sales and productivity of the companys products. It also provides information regarding the retailers opinions of the services afforded to them by the company and customers preferences. The questionnaire also involves comparisons between Hindustan Coca-Cola Beverages Pvt. Ltd. and its competitors so as to determine the efficiency of the company as against the opposition.

DATA ANALYSIS Preferred Soft Drink

This graph analyses most of bars and restaurants uses both coke and pepsi, secondly pepsi and third only its coke, fourth its other soft drinks and fifth it is no soft drinks is used in some of restaurants.

Are customers interested in using cans?

We can analyse from this graph that about 40 are not interested in using coco-cola 300 ml cans but about 35 are already using 300 ml cans and only 13 are interested to start using cans.

Preferred Flavour by E&D 2 customers

We can analyse from this chart that both cola and lemon flavour are more preferred than other single.

Cooler used by Soft drink customers

We can analyse from this chart that most bars and restaurants use pepsi cooler about 35 num and secondly own coolers about 28 num are used in bars and restaurants, thirdly coco-cola coolers are used about 15 num, at last both coolers used in few bars about 5 num.

Most preffered packs by soft drinks customer

This diagram shows most of bars and Restaurants use 300ml Rgb bottles as it is more suitable in Bars along with liquor, secondly pet bottle and cans, thirdly they use cans, fourth all packs, fifth pet bottle only also RGB and pet bottles, at last RGB and cans.

SUGGESTION TO CONVERT INTO CANS

This diagram analyses that about3/4th of Coca cola customers do not need any schemes or promotion because it is branded soft drinks, only about 3% interested in schemes and promotions

Do they need Marketing Material from coke?

This graph clearly shows that customers do not need and promotional materials from coca-cola because people already know about coca cola. Only few bars and restaurants need flanges and flexboards.

Any

Marketing

Material

provided

by

pepsi?

This diagram also shows that pepsi do not provide any marketing materials to their customers, only about 1% they give glowsign boards to their customers.

Promotional schemes of coke

We can analyse from this diagram that most of customers do not need any promotional schemes from coke about 80% of customers do not need any schemes, but about 5% of customers need other schemes such as T shirts, umbrella, caps as promotional schemes and about 1% need Menu cards in their bars and restaurants which may look beautiful inside.

Promotional schemes of pepsi

We can clearly Analyse that about 100% customers do not get promotional schemes from pepsi.

Mode of Transaction of coke

From this diagram we can clearly analyse that about 50% of coca cola customers do cash transaction and only 5% of customers use credit purchase, cash transaction is one of best way of transaction because it has less risk to the company but credit purchase may cause more problems the company because there chance of bad debt it may create loss to the company

Credit period of coke

This clearly shows most customers given 11-20 days credit period, secondly 1-10 days and least customers given 1 month period.

Mode of Transaction of pepsi

We can clearly Analyse that about 38% of customers use cash transaction to pepsi but they give credit to 20% customers comparing coca cola pepsi have more credit purchase customers, there is difference of 15% between coca cola and pepsi credit customers, this may be reason that pepsi have more customers than coca cola, but pepsi should bear more risk.

This diagrams clearly shows the same as coca cola as majority of pepsi customers are given 1120 days credit period but pepsi gives 1 month credit period to 60% customers and least to 1-10 days customers .this may be another reasons for more pepsi customers as 1 month credit period may attract more customers to buy pepsi products.

Monthly sales of 300ml RGB bottles of coca cola

From this diagram we could analyse that most bars and restaurants purchase 11-30 300ml RGB bottle cases per month and secondly more than 30 cases, thirdly 1-10 cases. This clearly shows that 300ml RGB bottles are mostly used packs in Bars and Restaurants due to less rate than cans and there is great sales for RGB bottles in bars.

Monthly sales 0f 300ml RGB bottles of pepsi

This diagram clearly describes that as same as coke that pepsi 300ml RGB bottles are sold around 11-30 cases monthly and secondly more than 30 cases, thirdly 1-10 cases

Suggestions

This is most important element in my report, from this diagram purchase manager suggests that most of them which is blue are happy with coco cola products it also includes using 300ml cans or coca cola products, this shows there is good fortune for coca cola cans, second majority people which is grey colored they are not interested in using 300ml cans also some are not interested in using coca cola products too because they may use pepsi products or due to less demand for coca cola cans, third majority people in green are interested to get more margin for cans so they get more profit, fourth majority people are not interested due to other issues like credit problems or previous problems etc, few other people give complaints about bad supply, some people need new schemes at last least people not happy with rate of 300ml cans.

SWOT ANALYSIS

STRENGTHS The brand image of Coca-Cola plays an important role as the strength for the company. Better understanding of the market trend allows the company to understand and meet timely requirements. Cans are beautiful designed will attract customers to buy cans Taste of coca cola product is strength

WEAKNESSES Unavailability of all flavors like fanta, thumps up etc on a daily base. Grievances faced by the retailers on damage problems. Less sales during off season Eg Rainy seasons In rare cases. Marketing developer may not cover certain routes may lead to decrease in sales High price for 300ml cans comparing competitor Less schemes than competitors. THREATS

OPPURTUNITIES

There is good scope to increase number of outlets. Increase the loyalty of customers by giving them new schemes and offers.

Competitors may give more offers than us. New competitors cant be taken lightly. Quicker service given by competitors may create problem.

Findings and Recommendations

This study has helped me to find various factors which are good and bad for the coca cola company. From this study in found that 300ml cans are having less opportunity in Bars but in restaurants there are more chance of entry of 300ml cans. Majority of bars are not interested in 300ml cans because they are happy with 300ml RGB bottle which are more suitable in bars and less price than cans and also in few bars I found that cans are less moving than RGB bottles but good news for our company is that there is more chance of creating entry of cans in Restaurants because most restaurants in fortkochi area are already using 300ml cans also they are happy with selling cans due to more tourists come also some bars too they use cans. The bad news for our company is we lack good supply comparing competitor and also some bars are complaining about damaged product, most important factor is credit facility, our company provides less credit to our customers than competitors this is one of main drawbacks. Another problem I found in this study is most of outlets needs coolers. I recommend the company to give more schemes and offers so that many bar and restaurants would be interested in cans although can rate is high comparing pepsi who sell much cheaper rate Although it is risky I recommend company to give credit facility to customers who give more orders According to me 300ml can rate is high. In order to compete with competitors especially pepsi introduce new can product with less weight about near Rs 20. Provide small coolers to restaurants Supply should be made good.

CONCLUSION

I did my Internship for 2 months at Hindustan Coca-Cola Beverages Pvt. Ltd at Ernakulam. My topic was opportunities of 300 ml cans in Eat and Dine 2 Market. During the study I visited many bars and restaurants in Ernakulam . from this study I received many information about coca cola products and marketing techniques of coca cola. Our company has some problems like supply problem, credit facility , Margin problems etc I hope company could overcome the situation and company I conclude this report by thanking all who helped me especially subhash sir. Thank you

BIBLIOGRAPHY
www.coca-colaindia.com google.com