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PROJECT ON
A REPORT TO STUDY THE EFFECTIVENESS OF THE PROMOTIONAL
ACTIVITIES OF COCA COLA CO. AT RAICHUR CITY
I hereby declare that this project report titled as A REPORT TO STUDY THE
EFFECTIVENESS OF THE PROMOTIONAL ACTIVITIES OF COCA COLA CO.
AT RAICHUR CITY for Coca Cola India Pvt. Ltd. It has been prepared by me as
part of my academics during 2nd December 2012 to 30th jan 2013 for the fulfillment
of Degree of Bachelor in Business Management, under the supervision Principle Mr.
Swamy sir and guidance of Mr. Raghavendra sir faculty of Marketing Management
of RAICHUR INSTITUTE OF MANAGEMENT STUDIES, RAICHUR.
To the best of my knowledge and belief the matter presented in this report has not
been submitted earlier for the award of any Degree to any University. This report is
prepared by me on my own efforts.
S NO
Subject matter
Chapter 1
Executive Summary
Introduction
Literature review
Statement of the problem
Scope of study
Objective of the study
Chapter 2
Organization Profile
Coca-Cola Co
Sampling
Research Design
Data collection method
Measuring tools
Chapter 3
Analysis with graphs and charts
Findings
Recommendation
Conclusions
Chapter 4
Appendix
Questionnaire
Master code sheet
Bibliography
CHAPTER-I
EXECUTIVE SUMMARY
INTRODUCTION
It is very important to know the Effectiveness of the promotion activities carried out
because of the expenditure incurred on these activities. Further it becomes
important for both the Client Co. and the ad. Agency to determine whether
their communication are working in same way as expected by them and how
well they are working relative to other options.
REASONS TO MEASURE EFFECTIVENESS:
Avoiding costly mistakes
Evaluating alternative strategies
Cost
Research problem
Time
LITERATURE REVIEW
PROMOTION ACTIVITES include all the activities that induce the customer to
purchase the product from the seller.
Types of promotion activities are:
Advertisement
Promotion
-- Consumer sales promotion
-- Trade Sales Promotion
-- Promotions to sales representatives
Displays
ADVERTISEMENT:
It is non-personal paid form of communication from an identified sponsor using
mass media to persuade or influence the audience. They are needed to
Attract
Persuade
Remind the customers about the products into the market, as an average
individual faces 250 ads a day. So the ads need to be such that it should
effective and should serve the purpose for which it was displayed
SALES PROMOTION
It refers to the activities, materials, devices, and techniques used to supplement the
advertising and marketing efforts and help coordinate the advertising with the
personal selling effort.
Sales promotion is an important component of a small business's overall marketing
strategy, along with advertising, public relations, and personal selling.
The American Marketing Association (AMA) defines sales promotion as "media and
non media marketing pressure applied for a predetermined, limited period of time
in order to stimulate trial, increase consumer demand, or improve product quality."
But this definition does not capture all the elements of modern sales promotion. One
should add that effective sales promotion increases the basic value of a product for a
limited time and directly stimulates consumer purchasing, selling effectiveness, or
the effort of the sales force. It can be used to inform, persuade, and remind target
customers about the business and its marketing mix.
Rebates: Consumers are offered money back if the receipt and barcode are
mailed to the producer.
Trade contest: A contest to reward retailers that sell the most product.
DISPLAY:
Display acts as a reminder to the consumers. Further in many products display may
also act as an influencer or a stimulus to purchase the product.
MANAGEMENT PROBLEM
De-growth rate in sales at RAICHUR city
RESEARCH PROBLEM:
The effectiveness of the promotion activities
On the basis of the study made I will be able to give the suggestions to the
Company.
To achieve the above said objective the study must consist of the following
CHAPTER-II
ORGANIZATION PROFILE
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler
thanked him but took no action. One of his nephews already had urged that CocaCola be bottled, but Candler focused on fountain sales.
21st Century
The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as consumers seek
brands that honor local identity and the distinctiveness of local markets. As was true
a century ago, strong locally based relationships between Coca-Cola bottlers,
customers and communities are the foundation on which the entire business grows.
Vision
To achieve sustainable growth; we have established a vision with clear goals.
People: Being a great place to work where people are inspired to be the best
they can be.
Mission
Everything we do is inspired by our enduring mission:
Values
Beliefs
There is much in our world to celebrate, refresh, strengthen and protect. The CocaCola Company is a vibrant network of people, in over 200 countries, putting
citizenship into action. Through our actions as local citizens, we strive every day to
refresh the marketplace, enrich the workplace, protect the environment and
strengthen our communities.
We are a local employer, with responsibility to enable our people to tap into their
The Coca-Cola Quality System: a worldwide initiative involving every aspect of our
business. Everyone who works for or with Coca-Cola is empowered and expected to
maintain the highest standards of quality in products, processes and relationships.
TCCQS mandates in-depth self-assessment throughout our operations, by all our
Our Suppliers
Our suppliers include those business partners who supply our system with
materials, including ingredients, packaging and machinery as well as goods
and services. At a minimum, all authorized and direct suppliers must comply
with all applicable laws and regulations, including those concerning child
labor, forced labor, abuse of labor, freedom of association and collective
bargaining, discrimination, wages and benefits, working hours and overtime,
health and safety, and environmental practices. All our new agreements with
suppliers require compliance with our Supplier Guiding Principles.
Our Customers
Our customers include large, international chains of retailers and
restaurants, as well as small, independent businesses. Some of our customers
are major corporations as globally familiar as the name Coca-Cola; others
are the corner market or the local pushcart vendor.
Whether customers are large or small, we work with them to create mutual
We also work with customers to broaden the range of beverages they offer,
provide nutritional information and ensure our beverages are marketed
responsibly.
Our bottling partners operate the majority of Coca-Cola bottling and canning
operations, producing and distributing more than 80 percent of our worldwide
volume. The Coca-Cola Company also operates a limited number of bottling and
canning facilities.
Bottling partners range from international and publicly traded businesses to small,
family-owned operations. Although we invest in the majority of bottling companies,
we have a controlling ownership interest in only a small number, meaning that the
vast majority of bottlers operate with separate governance and management
structures, and in accordance with applicable laws and customs. Our relationship
with these partners is one of collaboration and support, based on mutual selfinterest, common goals and shared values. We make every effort to positively
influence environmental activities and policies throughout our bottling system and
to provide information from both our Company-owned operations and our broader
system.
Cultural heritage and the arts: Promoting the arts and artists, preserving
heritage
Thumps up, Limca, Fanta are the products of Parle which are
purchased by the Coca-Cola Co.
NORTH
SOUTH
CENTRAL
SOUTH
(REGIONAL VICE PRESIDENT)
ANDRAPRADESH
CHENNAI
KERALA
KARNATAKA
DEPOT (DHARWAD)
DISTRIBUTORS
(RAICHUR, GADAG, HAVERI, NORH KANARA)
RETAILERS
CONSUMERS
Note: For places like Bijapur and other big markets the distribution channel does
not consist of the DEPOT at Dharwad, they directly get their stock from the
Bangalore plant.
1.
the operations directly carried by the company. These COBOs have to work under
the guidelines by the Coca-Cola Co. There are three (3) COBO units in South India
they are at following places:
2.
Bangalore (Biddi)
Andhra Pradesh
Chennai
Distributors in RAICHUR
1.
Trimurthi
2.
Desai
3.
Tejasvi
PROMOTION
Promotions help the companies to increase the sales and also to develop the market
Coca-cola Co. India provides the following promotions to enhance its sales,
Trade promotions
Consumer promotions
Promotions to the sales representatives
Advertisements
Displays
The outlet needs to be a high volume outlet, i.e. that outlets which gives
maximum business in short Red Outlet
TYPES OF TRADE PROMOTIONS:The promotion activities purely carried out to attract the retailers to place
orders. Basically this concentrates on the PUSH MARKETING STRATEGY
1. SCHEMES:
On a case of 300 ml bottles on every Cokes product the retailers
get the scheme of 5 cases + 1 Case free. I.e. if the retailers purchase
FIVE (5) cases they get a case free.
On the case of HALF litre on every Cokes product the retailers
get 1Case + 2 half litre bottles. I.e. if the retailers purchase ONE
case of Cokes Product then they get TWO(2) half litre bottles free
On the case of 1.5 litres / 2 litres on every Cokes product the
retailers get 1Case + 1 respective litre bottle. I.e. if the retailers
500 ml + 100 ml
DISPLAYS
As stated earlier display is an important factor especially with respect to the cold
drink industry. As soft-drinks are not the planned purchase goods their purchase is
initiated by the desire that arises when the consumers look at it. Hence display has a
vital role to play in it.
The company promotes display not directly but indirectly. I.e. in the Promotional
schemes provided to the retailer they do keep certain number of points to the
display. Hence they ensure prime location for Cokes Products.
Ex. The new Thumps-Up display Rack contributes 5 points to the latest promotion
given to the retailers.
BUDGET
Budget refers to the amounts given to the executives which help them to retain their
customers (retailers) by providing them trade promotions. The budget given will
decide the nature of trade promotions to be carried out.
The budget is given on basis of COST PER CASE (C.P.C)
I.e. Suppose 1 case has 5 Rs promotion to the retailers and suppose the sales figure is
10,000 units then the budget allocated will be
Rs 5 CPC X 10,000 units
= Rs 50,000
Hence the budget keeps on increasing as the sales figure increases. Further the CPC
amount will be decided by the marketing manager concerned.
SAMPLING
Selection of Sample:
Sampling allows us to concentrate our attention upon relatively small
number of people and hence devote more energy to ensure that the information
collected from them is accurate.
POPULATION:
SAMPLE FRAME:
Retailers and
SAMPLE UNIT:
50 are consumers
SAMPLE METHOD:
RESEARCH DESIGN
The research was divided into two parts they were,
1. Survey
2. Implementation
In the month of December survey was conducted and in the remaining period
implementation was carried out.
Survey:
For the survey purpose the entire RAICHUR city was divided into three stratas,
3.
Club road ,Sadhashiv nagar, Azam nagar, Nehru nagar, JNMC road Shiv
Basav nagar etc.
As per the route planner provided by the company the survey was conducted
through questionnaires.
Implementation
After the survey was conducted the Implementation work was carried out for the
surveyed outlets, during the remaining period i.e. 16 weeks (2 days in a week from
Jan 07 to April 07).
In this procedure the visits were made to the outlets along with the company vehicle
and seen that the different problems encountered with the outlets during the survey
were sorted out and seen to it the promotional activities were actually implemented.
The problems of display, Credit etc was known during survey. So these problems
were solved during the implementation part. The main problem of the credit due to
which the sales had fallen down was also taken into the concern and now the credit
Primary sources:
a) Questionnaire
b) Personal interaction
Secondary sources:
a) Related information from internet:
b) Organization Report
QUESTIONAIRE
PERSONAL INTERVIEW
MEASURMENT TECHNIQUES:
This project is analyzed with the help of SPSS software wherein the data is
analyzed with the help of
Bar Graphs
Frequency tables
Percentage tables
Cross tabs
CHAPTER-III
Synergy Institute of Management RAICHUR
Valid
Missing
100
0
Frequency Percent
Valid
Yes
No
Not
applicable
Total
60
38
2
60.0
38.0
2.0
Valid
Percent
60.0
38.0
2.0
100
100.0
100.0
Cumulative
Percent
60.0
98.0
100.0
P e rce n t
20
10
0
yes
No
Not applicable
The chart shows that in 60% of the outlets the brand order is maintained and the
remaining 38% do not maintain the Brand order, and in rest 2% this question was not
applicable as they had no display.
Hence brand order is the company norm which the retailers have to maintain in order to
participate in the sales promotion contest.
Valid
Valid
Missing
Schemes
No
Total
100
0
Frequency
Percent
76
24
100
76.0
24.0
100.0
Valid
Percent
76.0
24.0
100.0
Cumulative
Percent
76.0
100.0
60
P e rce n t
40
20
0
Schemes
No
The above chart shows that the company is indulged in giving schemes as the
promotion to 76% of the retailers. Whereas for the remaining 24% no schemes are
given because they are not as potential as the others.
Therefore the company has to give/provide some or the other small schemes to the
remaining 24% in order to retain them because during the survey it was found that
these were dissatisfied and wished to stop the sales of coke
Valid
Missing
100
0
Frequency
2
1
97
97.0
100.0
100
100.0
100.0
100
80
60
P e rce n t
40
20
0
I w anted stocks
Customers demand
Company representati
The above chart the company has built its brand image in RAICHUR Market and
therefore there is a huge demand from the customers. Hence 97% of the retailers
purchase the Coke products because of customers demand.
Whereas 1% of the retailers purchase it due to the company representatives force
and remaining 2% purchase only for the schemes provided.
This shows that the Company is following the PULL strategy
Q 4) Do you have any problem with respect to the service of Coke?
Statistics
N
Valid
Valid
Missing
Yes
No
Total
100
0
Frequency
Percent
11
89
100
11.0
89.0
100.0
Valid
Percent
11.0
89.0
100.0
Cumulative
Percent
11.0
100.0
80
60
P e rce n t
40
20
0
Yes
No
According to the above chart 89% of the retailers do not have any problem with respect to
the service provided by the company. But the remaining 11% retailers have the problem
with respect to the service.
Cross tabulation
Q 5) Do you have any problem with respect to the service of Coke * If 'Yes' handled on time
?
Case Processing Summary
Cases
Valid
N
11
Percent
11.0%
Missing
N
89
Percent
89.0%
Count
Total
N
100
Percent
100.0%
Yes
Total
11
11
7.5
7.0
6.5
6.0
5.5
5.0
Count
4.5
If 'Yes' handled on
4.0
Agree
3.5
Disagree
Yes
From the surveyed outlets 11% of the retailers had some problem with respect to the
service of the company out of these 11%, 4% agree to it that their problems were handled
on time. Whereas the remaining 7% said their problems were not handled .
Therefore the company needs to concentrate on these 7% who have complaints with
respect to the companys service level. So that 100% satisfaction is achieved and better
relationship is built.
Valid
Missing
100
0
Frequency
1
90
7
2
90.0
7.0
2.0
91.0
98.0
100.0
100
100.0
100.0
80
60
Percent
40
20
0
Glow sign Board
Cooler
Rack
No display
The above chart shows that the company has given cooler promotion to 90% of the outlets
surveyed. Remaining 1% has glow sign board, 7% has Racks and for the remaining 2 %
there was no display.
Hence it shows that the company is concentrating on displays by understanding its
importance.
Q 7) Nature of outlets
Statistics
N
Valid
Valid
Missing
Coke
Shared
Total
100
0
Frequency
Percent
8
92
100
8.0
92.0
100.0
Valid
Percent
8.0
92.0
100.0
Cumulative
Percent
8.0
100.0
80
60
Percent
40
20
0
Coke
Shared
Nature of outlets
From the above chart it is clear that out of the 100 shops surveyed 92% were shared
outlets and the remaining 8% were Coke monopoly outlets.
Pepsi monopoly was not known as the survey was done only according to the list
provided by the company.
Valid
Valid
Missing
Cash
Credit
Total
100
0
Frequency
Percent
90
10
100
90.0
10.0
100.0
Valid
Percent
90.0
10.0
100.0
Cumulative
Percent
90.0
100.0
80
60
Percent
40
20
0
Cash
Credit
Mode of payment
The above chart clearly shows that the company is following cash and carry policy. Hence
90% of the shops surveyed had Cash as their mode of payment and the remaining 10%
had credit as their mode of payment.
This credit was basically followed at Shahpur area.
Cross tabulation
Q 9) Mode of payment * If 'credit' period is
Case Processing Summary
Mode of payment *
If 'credit' period is
Cases
Valid
N
10
Percent
10.0%
Missing
N
90
Percent
90.0%
Total
N
100
Percent
100.0%
Mode of payment
Total
Credit
15days
2
2
Bill to Bill
6
6
Total
Week
2
2
10
10
If 'credit' period i
Count
15days
2
Bill to Bill
1
Week
Credit
Mode of payment
The above chart shows the details of the credit period provided to the retailers.
Out of the 10% retails shops to which credit is provided 2% shops are given 15 days
of credit, 6% are given Bill to Bill credit and remaining 2% are given a week credit.
Q 10) Would you like to take additional stock if promotions given?
Statistics
N
Valid
Valid
Missing
Yes
No
Total
100
0
Frequency
Percent
84
16
100
84.0
16.0
100.0
Valid
Percent
84.0
16.0
100.0
Cumulative
Percent
84.0
100.0
80
60
Percent
40
20
0
Y es
No
The above chart clearly shows the importance of the promotions as 84% of the
retailers surveyed agree to purchase additional stock when promotion is given.
Where as remaining 16% believe that there would be no impact of promotions on
their sales.
Valid
Missing
50
0
Advertisement
Effect
Product Taste
Influence by
near and dear
one's
Display
Total
Valid
Cumulative
Percent
Percent
32.0
32.0
16
32.0
25
7
50.0
14.0
50.0
14.0
82.0
96.0
2
50
4.0
100.0
4.0
100.0
100.0
50
40
30
Percent
20
10
0
Advertisement Ef f ect
Product Taste
Display
The above chart shows that out of 50 consumers surveyed 32% drink coke due to
the advertisement effect, 50% drink it due to its difference in taste, 14% drink it
because of the influence by near and dear ones , 4% thirst arise by seeing the
display.
Hence we say that first TASTE and second ADVERTISEMENTS play an important
role in influencing people.
Q 2) when said of soft drink ad which ad strikes your mind first ?
Statistics
N
Valid
Valid
Missing
50
0
Pepsi Products
Coke's products
Frequency
20
30
Cumulative Percent
40.0
100.0
50
100.0
100.0
Percent
20
10
0
Peps i Products
Coke's products
The above chart shows that the ads of Coke product do have a better impact
on consumers mind when compared to the Pepsi Products. Hence 40% of the
consumers say they like Pepsis ad and the remaining 60% consumers
surveyed like the ads of Cokes products and believe it has a better impact.
Valid
Missing
50
0
Frequency
Percent
Valid Percent
Cumulative Percent
No life
Short period
Sufficient
long
Long Life
Total
2
23
17
4.0
46.0
34.0
4.0
46.0
34.0
4.0
50.0
84.0
8
50
16.0
100.0
16.0
100.0
100.0
40
30
Percent
20
10
0
No lif e
Short period
Long Lif e
The above chart shows the life that the Cokes ads. have I.e. the impact of ads.
On the consumers mind. This chart shows that 4% consumers surveyed believe
that it has no life, 46% believe it has Short life, 34% believe it has sufficient long
life and remaining 16% believe it has long life.
So on an whole it can be said that the ads of Cokes products remain into the
consumers mind from short to sufficient long period.
Q 4) Does the consumer receive the consumer promotions given
Statistics
N
Valid
Missing
50
0
Frequency
Percent
Valid
Percent
Cumulative
Percent
Yes
No
Total
27
23
50
54.0
46.0
100.0
54.0
46.0
100.0
54.0
100.0
50
40
30
Percent
20
10
0
Yes
No
The above chart shows that the 54% of the consumers receive the consumers
promotion given by the company, where as the remaining 46% do believe they do
not get the promotion given.
This 46% is a too big figure hence the company executives need to pay a lot of
attention to see to it that the outlets give the necessary promotions on the cokes
product to the customers. Further the company should also make efforts why the
promotions are not given and try to solve the problem as it directly affects the
brand image.
Q 5) Do the promotions given by coke ignite your desire
Statistics
N
Valid
Missing
50
0
Frequency
Percent
24
26
50
48.0
52.0
100.0
Yes
No
Total
Valid
Percent
48.0
52.0
100.0
Cumulative
Percent
48.0
100.0
50
40
30
Percent
20
10
0
Yes
No
The above chart shows that 48% of the consumers surveyed enjoy the promotions
given by the Company. The remaining 52% do not enjoy the promotions given by
the company.
Hence the company needs to seriously think on it and provide such promotions
that attract the consumers.
Statistics
N
Valid
Missing
50
0
Scratch Cards
point Games
Free Chatpata
Balls
Free Quantity
Total
13
1
8
26.0
2.0
16.0
26.0
2.0
16.0
28
50
56.0
100.0
56.0
100.0
Cumulative
Percent
26.0
28.0
44.0
100.0
50
40
30
Percent
20
10
0
Scratch Cards
Free Quantity
The above chart shows 56% of the consumers surveyed like the free quantity
promotion, 26% like the scratch card offers, 16% like the free chatpata balls
offer, remaining 2 % like the points game.
Statistics
N
Valid
Missing
50
0
Yes
No
Total
Frequency
Percent
27
23
50
54.0
46.0
100.0
Valid
Percent
54.0
46.0
100.0
Cumulative
Percent
54.0
100.0
50
40
30
Percent
20
10
0
Yes
No
The above chart shows that 54% of the consumers who will drink coke even if the
promotions are not given, remaining 46% do say they are also interested in the
promotions. This 46% of the consumers play an important role so these 46%
people show the importance of the promotions.
Valid
Missing
50
0
Yes
No
Total
Frequency
Percent
15
35
50
30.0
70.0
100.0
Valid
Percent
30.0
70.0
100.0
Cumulative
Percent
30.0
100.0
60
Percent
40
20
0
Y es
No
The above chart shows 70% of the consumers surveyed are not brand loyal that
will shift their taste if Coke is not available in the store. The remaining 30% of the
consumers surveyed are Brand Loyal who stick only to COKE.
So the availability of the product in the store is very important to maintain the
market share.
FINDINGS
CHAPTER-IV
b) Product taste
d) Display
b) Coke products
b) Short period
c) Sufficient long
No
No
No
No
d) Long
2.
3.
No
4.
Discounts
Scratch Cards
Membership coupons
Customers demand
Do you have any problem with respect to the service of the company
Yes
No
Disagree
7.
Cooler
Rack
Flanger
NO
Pepsi
Shared
No
Credit
if credit period is
15 days
9.
No
5.
Not applicable
Bill to Bill
Week
No
Search Engines
4. Market Developers.
5. Distributors
6. Marketing Research Book by Tull and Hawkins
7. Advertising and Promotions by Belch and Belch