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HIGHER NATIONAL CERTIFICATE IN BUSINESS

Report on Indian Cola

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

Akhil madem Student signature Description: images.jpg Date

THE INDIAN COLA THE CHANGING TRENDS OF MARKETING

An Assignment by M.AKHIL Contents INTRODUCTION: 4 ABSTRACT: 4

MAIN TEXT. 5 Disadvantages of Product concept. 5 Advantages of marketing. 5 Cost Benefit Analysis. 6

INTRODUCTION:
The Indian Cola company was operating in North India with a dozen of manufacture units. It produces carbonated Cola flavored drinks of the name COLA in north India, Quenching the thirst of its customers with the traditional flavor of cola since the past 5 years. But recently, the assessments of the company showed that there is a decrement in the sales for the past year. So the company has been trying to change its marketing strategy.

ABSTRACT:
Even the firm begins well, in long run, product concept is not so efficient Proper marketing brings better and stable profits Stable profits are attainable with efficient marketing strategy Since, the cola flavor is a traditional one and has its own set of audience; we should check the labeling and packaging than flavor. MAIN TEXT: The marketing orientation of the company is as follows: They follow product concept, constantly improving the product. Since the Cola is a drink that has a specified taste which the customers like, so the taste of the drink was not changed but its labeling, with more attractive graphics and packaging bottles. This concept says that the consumer needs or opts for the product which is most in quality and performance or innovative features. Since we focus on making products and improve overtime, we have been adopting this. Like, we have added a blend of Cherry to the real existing cola flavor which improved our brand value and our market share. But in a few countries, we are successful in expanding our market share with the cherry cola product. A new product is not a successful one unless it is priced, advertised and sold properly. The current one was a bit lower than what we (company) should possess. Even of the advantages of constant renewing of the labeling. It is not sufficient because of the following reasons. Disadvantages of Product concept: In a heavy queue, it takes time to deliver the product. This prevents innovation as we are confined to only one product and its development. Compromises holistic vision of the product. Maintenance overhead of cost and efficiency and other things. . "It's not enough that we do our best; sometimes we have to do what's required. Says Sir Winston Churchill. So if we switch to marketing our products, the market share of our company would be more and as well are the profits. In marketing, product quality is ensured as well as the relation with the customer. It is more like making a customer rather than the sale Advantages of marketing: The main benefit of the marketing strategy is brand recognition. It creates a value and belief in the customers mind that our company is a honorable and recognizable one. Once we have grounded and having a good market share, this marketing makes us live and retain our customers, if we maintain a healthier relationship. Also helps us to find true and potential customers. This helps us avoiding the unnecessary costs of trying an unwilling customer on our product. It helps us to find the real customers who are in real need. Marketing, and more so, effective marketing will help reduce the break-even period of a business. By promoting a product

or service through effective marketing, a business can promote its sales and reach its intended clientele faster. When using direct marketing we can communicate directly with our chosen target market, like the target market of our cola product is the people above the age of 9. And this would give us a better sales and success rate than communicating to the mass market. Where there are many who are not interested in our beverage. If you use effective techniques for sourcing, you can generate new customer prospects and grow your sales to new customers. Marketing lets us adapt and respond to the needs of our market, and our business. You can achieve fast and flexible sales results using marketing. For example, you could use a direct marketing campaign to:

boost sales of a particular product like any other flavor in our company Run out discontinued stock; but none such has occurred till now. Renew stale sales figures. Increase customer contacts. Follow-up on a promotion.

Since we follow marketing strategy, we follow Cost Benefit Analysis; in short it can be called as CBA. A French Economist Jules Dupuit was credited for the design of this Cost benefit Analysis. It is a systematic procedure which involves the following steps Cost Benefit Analysis: Choose the list of all projects and programs which we are going to implement Listing all the stake holders of the company Selecting a measurement scale and measure all the Costs and Benefits Predicting the outcome for a particular period of relevant time Applying Discount rates Performing Sensitivity Analysis Adopting the recommended procedure later. If we do design a perfect marketing strategy and implement it with a little practicality, we could be successful. For an example lets see an example of a company which have switched its strategy. P&G is a world famous company for its products in foods, beverages and personal care products. This company has been following the marketing strategy which now operates with the annual assets of 132.2 billion US$ is getting a revenue of 83.68 billion US$ in 2012, has changed its marketing orientation from following the product concept to upgrading themselves to the marketing of their product. They also involved societal marketing, making the consumers to donate a little amount of money to make play grounds to children.