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Chapter 1
INTRODUCTION
The beverage industry companies run mainly on the
factors such as availability, service frequency, affordability,
taste and marketing. Availability plays a vital role because
purchasing power depends upon availability of that product, in
this case distributors and retailers service matter a lot.
A retailer or retail store is any business enterprise whose
sales volume comes primarily from retailing.
Market penetration is one of the four growth strategies of
the Product-Market Growth Matrix defined by Ansoff. It occurs
when a company enters or penetrates a market with current
products. The best way to achieve this is by gaining
competitors customers (part of their market share). Other ways
include attracting non-users of the product or convincing
current clients to use more of your product/service (by
advertising etc).
It was found that due to low consumption of Maaza,
there is no much awareness of the product in Ernakulam city. It
was the major cause to the low selling of Maaza. Like that the
penetration level was low.
Finally the whole study of the research work was that the
company needs the effective advertising of the product in the
local channel and print media for awareness of Maaza in
Ernakulam city.
1.1 OBJECTIVES
To understand and increase the market penetration of
1.4 LIMITATIONS
Some retailers presented their biased opinion which put
hindrance in the interpretation.
The duration of the study was limited.
Non cooperative behavior of the retailers.
Chapter 2
INDUSTRY PROFILE
2.1 INTRODUCTION TO SOFT DRINKS
A soft drink (also called soda, pop, coke, soda pop, fizzy
drink, seltzer, mineral, lolly water or carbonated beverage) is a
beverage that typically contains carbonated water, a sweetener
and a flavoring. The sweetener may be sugar, high-fructose
corn syrup, fruit juice, sugar substitutes (in the case of diet
drinks) or some combination of these. Soft drinks may also
contain caffeine, colorings, preservatives and other ingredients.
Soft drinks are called "soft" in contrast to "hard drinks"
(alcoholic beverages). Small amounts of alcohol may be
present in a soft drink, but the alcohol content must be less than
0.5% of the total volume if the drink is to be considered nonalcoholic.
Soft drinks are available in glass bottles, aluminum cans
and PET bottles for home consumption. Non-alcoholic soft
drink beverage market can be divided into fruit drinks and soft
drinks. Soft drinks can be further divided into carbonated and
non-carbonated drinks. Cola, lemon and oranges are carbonated
drinks while mango drinks come under non carbonated
category. Cola products account for over 60% of the total soft
drink market and include popular brands such as Coca-Cola,
Pepsi, and Thumps up etc. Non-cola segment constitutes for
over 35% of the market.
2.2 PRODUCTION
There are different types of raw materials used in different
soft drinks. Most of the raw materials are as under:
Water:
The simple sweetened soft drink contains about 90% of
water, while in diet drinks; it contains 95% of water.
Flavour:
Flavour is of great importance in soft drink. Even water
from different places has different taste. The flavour for taste
added can be natural or artificial, acidic, caffeine.
Artificial Flavour:
Colour:
Along with taste of soft drink is also of very important,
the company tries to maintain both taste &colour of the soft
drink everywhere in the world.
Sugar:
Sugar syrup is added to the drink at around 75 degree
Celsius to the pure drinking water, this is to make soft drink
taste sweet. Even artificial sweetness is also used.
challenging task for Parle to position its product i.e. Gold Spot
in the market against the Coca-Cola because people were
habituated of using foreign brands. Therefore, first it was
launched in Mumbai and free sampling was done in hotels,
restaurants, offices and clubs to make the people aware about
the taste and quality because it was quite different from cola
coke in the attributes. Parle increased its production unit up to
29, which was more than coca cola that had only 23-production
unit at that time.
During the reign of Janta party in 1978, the Indian
government cancelled collaboration with U.S.A. Coca Cola
Company. Therefore, the coca cola decided to wind up the
Operation rather than bowing to Indian govt. This very factor
accelerated the growth of several Indian companies who had
aggressively competing with each other to capture a major
share of the Indian soft drink market. New soft drinks entered
into the market among which FROOTl, JUMPIN and
TREETOP entered in tetra packs and they started grabbing the
market share in absence of the cola giant.
In 1991, about thirteen years after the exit of coca cola
from Indian market, A MNC, globally known as P.C.I. (Pepsi
Cola International) entered the Indian market with PFL (Pepsi
Food Ltd.). Its president, Christopher found a large scope for
this soft drink in India.
Both PFL and Parle were the main bottlers in the soft
drink arena. There was a cutthroat competition between them.
Now (in 1993) Coca Cola has re-entered into the Indian market
and has acquired five brands of Parle i.e. Thumps up, Limca,
Citra, and Gold Spot. Thus, Coca Cola has become the close
competitors of PFL and they are fighting each other to gain a
clear edge over the other.
The Indian soft drink market industry is estimated at a
whoopingRs.2000 crores and growing at an encouraging pace
of 16% per annum.
1819:
Fahnestock.
1835:
1861:
1874:
1881:
1886:
Cola" in
Atlanta, Georgia.
1898:
1923:
Paks"
created.
1957:
1959:
1970
1973
The
PET
(Polyethylene
Terephthalate)
bottle created
Chapter 3
COMPANY PROFILE
3.1 INTRODUCTION
Type
Industry
Founded
Founder(s)
Private
Beverage
1886
Asa Griggs Candler, Joh
Pemberton
created
the
so
drink/beverage "Coca-Cola", bu
Ke
Revenue
Employees
Website
Coca-Cola, the product that has given the world its bestknown taste was born in Atlanta, Georgia, on May 8, 1886.
Coca-Cola Company, best known for its flagship product CocaCola, is the worlds leading manufacturer, marketer and
10
11
3.2 MISSION
The mission of the company declares its purpose. It
serves as the standard against which the company weighs its
actions and decisions.
To refresh the world in body, mind and spirit.
To inspire moments of optimism and happiness
through brands and actions.
To create value and make a difference.
3.3 VISION
12
13
the
Coca-Cola
business.
Within
four years,
his
merchandising flair had helped expand consumption of CocaCola to every state and territory after which he liquidated his
pharmaceutical business and focused his full attention on the
14
15
300ml, 330ml
200ml, 300ml, 330ml
350ml, 400ml, 500ml,
1250ml,
Fountain Glass
2250ml
Various sizes
16
1500ml,
600ml,
2000ml,
Variety
Cans
Pet
300ml, 330ml
350ml, 500ml, 600ml,
3.5.3 Thums Up
Thums Up is a leading carbonated soft drink and most
trusted brand in India. Originally introduced in 1977, Thums
Up was acquired by The Coca-Cola Company in 1993. Thums
Up is known for its strong, fizzy taste and its confident, mature
and uniquely masculine attitude. This brand clearly seeks to
separate the men from the boys.
Variety
Cans
RGB
Pet
300ml, 330ml
200ml, 300ml, 330ml
350ml, 400ml, 500ml,
1250ml,
Fountain Glass
1500ml,
2250ml
Various sizes
3.5.4 Sprite
Sprite is the world's leading lemon-lime flavored soft
drink. Since its inception is 1999, Sprite has not only
17
600ml,
2000ml,
established itself as a brand which successfully boasts it's 'cutthru' perspective with an authentic, edgy, irreverent, urban and
straight forward style, but has also achieved status of an
undisputed youth 'badge' brand. Today Sprite is one of the top
two sparkling soft drinks in the country. Millions of people
enjoy Sprite because of its crisp, clean taste that really
quenches ones thirst.
Variety
Cans
RGB
Pet
300ml, 330ml
200ml, 300ml, 330ml
350ml, 400ml, 500ml,
1250ml,
Fountain Glass
1500ml,
600ml,
2000ml,
2250ml
Various sizes
3.5.5 Fanta
Fanta entered the Indian market in the year 1993.
Perceived as a fun youth brand, Fanta stands for its vibrant
color, tempting taste and tingling bubbles that not just uplifts
feelings but also helps free spirit thus encouraging one to
indulge in the moment.
Variety
Cans
RGB
Pet
300ml, 330ml
200ml, 300ml, 330ml
350ml, 400ml, 500ml,
1250ml,
Fountain Glass
2250ml
Various sizes
18
1500ml,
600ml,
2000ml,
3.5.6 Limca
Born in 1971, Limca has remained unchallenged
as the No.1 Sparkling Drink in the Cloudy lemon Segment. The
success formula is the sharp fizz and lemoni bite combined
with the single minded proposition of the brand as the provider
of "Freshness".
Variety
Cans
RGB
Pet
300ml, 330ml
200ml, 300ml, 330ml
350ml, 400ml, 500ml,
1250ml,
Fountain Glass
1500ml,
600ml,
2000ml,
2250ml
Various sizes
3.5.7 Maaza
Introduced in 1970s, Maaza has today come to
symbolize the very spirit of mangoes. Universally loved for its
taste, color, thickness and wholesome properties, Maaza is the
mango lover's first choice.
Variety
Cans
RGB
Pet
300ml, 330ml
200ml, 300ml, 330ml
350ml, 400ml, 500ml,
1250ml,
Fountain Glass
2250ml
Various sizes
19
1500ml,
600ml,
2000ml,
3.5.8 Minute-Maid
The brand launched in its internationally successful
minute maid pulpy Orange avatar is a naturally refreshing juice
drink which offers an Unmatched taste experience to
consumers due to the presence of real orange pulp. This
innovative consumer proposition is best explained by the brand
tagline Refreshing orange, surprisingly pulpy. Now the
minute maid is available in flavors like Mango, Apple, Guava,
Nimbu Fresh and mixed fruit.
Variety of Pulpy Orange
Pet
Tetrapak
400ml, 1L
200ml
3.5.9Kinley Water
Kinley water comes with the assurance of safety from
The Coca-Cola Company. That is why we introduced Kinley
with reverse osmosis along with the latest technology to
ensure purity of our product. Because we believe that right to
pure, safe drinking water is fundamental.
Variety
Pet
20
Variety
Hot Beverages
Cold Beverages
150ml
Lemon Iced Tea, Peach Iced
3.6 MILESTONES
Year 1899: The first bottling agreement
Year 1916: Birth of the Contour Bottle
In the 1920s: Bottling overtakes fountain sales
In the 1920s and 1930s: International expansion
In the 1940s: Post-war growth
In the 1950s: Packaging innovations
In the 1960s: Introduction of new brands
In the 1970s and 1980s: Consolidation to serve
customers
1992: Coca-Cola resumes operations in India
1993: Parle brands acquired (Thums Up, Limca, Maaza,
Gold Spot, Citra)
21
Limited
erstwhile
Hindustan
Coca-Cola
Chapter 4
ORGANIZATION STRUCTURE
Organization is the foundation upon which the whole
structure of management is built. Organization is related with
developing a frame work where the total work is divided into
manageable components in order to facilitate the achievement
of objectives or goals. Thus, organization is the structure or
mechanism (machinery) that enables living things to work
22
sense
organization
refers
to
the
structure
of
23
relationship,
chain
of
command
and
24
Organizational chart
CRPSKMA F A A DG H
aehG ao a sl e i r u
ayrnuMa C e l er l m i
nek/ ea a k t p a a u
AenS esb t seR S o
MctEO ea cT ts t l t
e s
aciD eoM x r e lu
&s
Mnao e e c Sn sM
auga M cl v gi M e
gnua ea r a m
r
e ta k a et en l
sg e r o r a ie
esv p t g
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b
i
r
r a
n al t
ai e
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l oy
r a
e a
n
e
s
g n
g rn
r
25
Chapter 5
DEPARTMENTS AND THEIR
FUNCTIONS
5.1 VARIOUS DEPARTMENTS
5.1.1 COMMERCIAL DEPARTMENT
S
R
K
C
M
o
e
h
a
r
lm
o
ip
y
a
m
le
a
n
k
b
is
t
A
n
e
i
D
r
c
e
t
i
T
r
n
lc
ir
a
o
n
t
a
n
u
M
g
l
iy
k
c
n
a
D
e
t
n
D
E
s
a
e
e
r
q
g
a
v
s
u
e
p
r
a
ie
m
lr
p
e
t
t
o
n
m
m
p
t
e
e
m
n
n
e
t
t
n
t
D
e
D
p
e
a
p
r
t
a
r
m
t
e
m
n
t
e
n
t
26
27
28
29
30
5.1.4 BUSINESS
SUPPORT
GROUP
DEPARTMENT
Business Support Systems (BSS) are the components
that a telecommunications service provider (or telco) uses to
run its business operations towards customers. This department
deals with the taking of orders, payment issues, revenues, etc. It
supports
four
processes:
product
management,
order
system
which
seeks
resource
management
(IT) into
technology
resources,
less capital-
the
past.
It
is
Resource
5.1.5 HR DEPARTMENT
School of Management Studies, CUSAT
31
P
H
S
A
R
a
d
A
l
m
C
e
i
s
n
H
R
This department is designed to maximize employee
performance in service of their employers strategic objectives.
HR is primarily concerned with how people are managed
within organizations, focusing on policies and systems. It
consists of putting right number of people, right kind of people
at the right place, right time, doing the right things for which
they are suited for the achievement of goals of the organization
HR departments and units in organizations are typically
responsible for a number of activities, including employee
recruitment, training and development, performance appraisal,
and rewarding (e.g., managing pay and benefit systems). HR is
also concerned with industrial relations, that is, the balancing of
organizational practices with regulations arising from collective
bargaining and governmental laws.
The duty of an administrator depends on the company
that the administrator works for. However, general skills exist
that apply to most administrators across varied organizations.
One of the primary duties of an administrator is to ensure that
32
include
good
communication
and
being
organized.
D
S
I
a
iD
l
r
P
A
s
e
S
t
s
c
r
it
b
S
u
a
t
l
o
e
r
s
D
i
s
t
r
i
b
u
t
i
o
n
33
Direct distribution:
In direct distribution, the bottling unit or
the bottler partner has direct control over the activities
of sales, delivery, and merchandising and local account
management at the store level.
34
Indirect distribution:
In indirect distribution, an organization which is
not part of the Coca-Cola system has control on one or
more
of
the
Merchandising:
Merchandising means communication with the
consumer at the point of purchase to convey product
benefit, value and Quality. Sales people and delivery
personnel both have this responsibility. In certain
locations special teams go into business locations to
specifically merchandise our products.
and
its
future.
A SWOT
used
analysis is
to
evaluate
and threats
35
STRENGTHS:
Popularity
Well known
Branding obvious and easily recognized
A lot of finance
Customer loyalty
International Trade
Coca
Cola
is
an
extremely
recognizable
36
Cola is
known very
well
37
WEAKNESS
Word of mouth
Lack of popularity of many Coca Colas brands
Most unknown and rarely seen
Result of low profile or non-existent advertising
Health issues
Coca Cola is a very successful company, with
limited weaknesses. However they do have a variety of
weaknesses that need to be addressed if they want to rise to
the next level. Word of mouth is probably a strength and
weakness of every company. While many people have good
things to say, there are many individuals who are against
38
OPPORTUNITIES
Many successful brands to pursue
39
40
THREATS
Changing health-consciousness attitude
Legal issues
Health ministers
Competition (Pepsi)
Despite the fact that Coca Cola dominates its
market, it still has to deal with many threats. Even though
Coca Cola and Pepsi control nearly 40% of the entire
beverage market, the changing health-consciousness attitude
of the market could have a serious effect on Coca Cola. This
definitely needs to be viewed as a dominant threat. In todays
world, people are constantly trying to change their eating and
drinking habits. This could directly affect the sale of Coca
Colas products. Another possible issue is the legal side of
things. There are always issues with a company of such
supreme wealth and popularity. Somebody is always trying
to find fault with the best and take them down. Coca Cola
has to be careful with lawsuits. Health minister could also be
looked at as a threat. Again, some people may try to exploit
41
Chapter 6
42
LITERATURE REVIEW
Marketing is the process of communicating the value of
a product or service to customers, for the purpose of selling that
product or service. Marketing can be looked at as an
organizational function and a set of processes for creating,
delivering and communicating value to customers, and
customer relationship management that also benefits the
organization. Marketing is the science of choosing target
markets through market analysis and market segmentation, as
well as understanding consumer behavior and providing
superior customer value. It is a critical business function for
attracting customers.
The Chartered Institute of Marketing defines marketing
as 'The management process responsible for identifying,
anticipating and satisfying customer requirements profitably'.
Philip Kotler defines marketing as satisfying needs and
wants through an exchange process'.
A sale is the act of selling a product or service in return
for money or other compensation. Signaling completion of the
prospective stage, it is the beginning of an engagement between
customer and vendor or the extension of that engagement.
Marketing and sales differ greatly, but have the same
goal. Selling is the final stage in Marketing, which also
includes Pricing, Promotion, Positioning and Product (the 4Ps).
43
Growth
Matrix
as
defined
Construction
Market penetration can be defined as the proportion of
people in the target who bought (at least once in the period) a
specific brand or a category of goods. Two key measures of a
products 'popularity' are penetration rate and penetration share.
The penetration rate (also called penetration, brand penetration
or market penetration as appropriate) is the percentage of the
relevant population that has purchased a given brand or
category at least once in the time period under study. A brands
penetration share, in contrast to penetration rate, is determined
44
industry
growth
rate,
but
decreasing
New
Market
Product
Penetration
Development
Market
Diversification
New
Market
Existing
existing
Development
School of Management Studies, CUSAT
45
A. Market Penetration:
Market penetration means trying to increase sales of an
organization's existing products or services in its existing
markets. This can be accomplished by strengthening current
customer relationships to increase their rate of product/service
utilization or trying to attract competitor customers or current
non-users. Market penetration seeks to achieve four main
objectives:
Maintain or increase the market share of current products
this can be achieved by a combination of competitive
pricing strategies, advertising, sales promotion and
perhaps more resources dedicated to personal selling.
Secure dominance of growth markets
Restructure a mature market by driving out competitors;
this would require a much more aggressive promotional
campaign, supported by a pricing strategy designed to
make the market unattractive for competitors
46
Changes
in
taste
lead
to
increased
47
or
48
49
Segmentation
50
need
to
identify
how
to
position
their
51
Advertising
Brand managers need to understand how customers
perceive and select brands in specific product categories and
market segments. You also need to know what is important to
customers when making a brand decision, where customers get
information about products and services, and what customers
think about your brand.
6.5 PROMOTION
Promotion is one of the market mix elements, and a term
used frequently in marketing. It is the specification of
five promotional mix or promotional plan. These elements are
personal
selling,
advertising,
sales
promotion, direct
acceptance,
creation
of brand
52
Chapter 7
DATA ANALYSIS AND
INTERPRETATION
7.1
Table 7.1
DRINKS
PERCENTA
GE
O
1
2
3
4
5
Maaza
Slice
Frooti
Maa
Others
29
35
27
6
3
Figure 7.1
53
10
5
0
Maaza
29
Slice
35
Frooti
27
Maa
Otherss
Table 7.2
SL. NO
BRANDS
PERCENTAGE
1
2
Minute Maid
Mazaa
57
43
Figure 7.2
54
HCCBPL Brands
60
50
40
30
20
10
0
57
Minute Maid
43
Mazaa
7.3
SL. NO
1
2
3
4
5
REASONS
PERCENTAGE
Price with
quantity
Health drink
Status symbol
Taste
Variety
35
9
15
39
2
Figure 7.3
55
2
35
15
39
Table 7.4
SL.
TYPES
OF
PERCENTA
PACKAGIN
O
1
G
Returnable Glass
2
3
Bottles
Pet Bottles
Tetra Pack
82
15
GE
56
Figure 7.4
Packaging Preffered
100%
90%
80%
70%
60%
50%
40%
30%
82
15
20%
10%
0%
Returnable Glass Bottles
Pet Bottles
Tetra Pack
Table 7.5
SL.
QUANTITY
PERCENTAG
NO
1
2
3
E
400ml
600ml
1.2L
5
73
22
57
Figure 7.5
Quantity
1.2L
22
600ml
73
400ml
10
20
30
40
50
60
70
80
SL. NO
CUSTOMERS
PERCENTAGE
1
2
3
4
5
School children
College students
Retailers
Travelers
Regular customers
4
30
8
14
44
58
Figure 7.6
Customers
14%
School Children
8% 4%
College Students
30%
Retailers
Travellers
Regular Customers
44%
Table 7.7
SL. NO
ORDER
PERCENTAGE
1
2
3
Daily
Weekly
Once in a month
0
82
18
Figure 7.7
59
Order
Weekly; 82%
7.8
PRODUCTS
PERCEN
TAGE
1
2
3
4
5
6
Maaza
M.M Orange Pulpy
M.M Apple Juice
M.M Mango Juice
M.M Nimbooz
M.M Mixed Fruit
33
24
21
11
3
4
60
M.M Gauva
Figure 7.8
Products
35
30
25
20
15
10
5
0
24
21
11
3
33
Table 7.9
SL. NO
ON
TIME
1
2
DELIVERY
Yes
No
PERCENTAGE
96
4
61
Figure 7.9
On time Delivery
Yes
No
4%
96%
Table 7.10
62
SL. NO
PROBLEM
PERCENTAGE
1
2
Yes
No
34
66
Figure 7.10
Problem
66
34
Yes
No
63
Table 7.11
SL. NO
ACTIVITY
PERCENTA
GE
1
2
3
Discount
Combo Offers
Gift Vouchers
56
28
16
Figure 7.11
Activity
Discount
Combo Offers
Gift Vouchers
16%
28%
56%
64
VER
ES
GO
AVERA
BA
GE
VE
R
Y
Quality
Brand
49
51
29
27
18
16
3
4
1
2
Image
Availability
Packaging
48
51
30
29
15
12
5
7
2
1
Figure 7.12
65
Attributes
60
Very Good
50
Good
40
Average
30
Bad
20
Very Bad
10
0
Table 7.13
FACTORS
PERCENTAGE
Reduced prices
Changes in flavor
Seasonal variations
11
New Ads
67
66
Packaging
18
Figure 7.13
Factors
1%
3%
18%
Reduced prices
Chnages in Flavor
Seasonal Variations
New Ads
11%
Packaging
68%
Table 7.14
PRICING POLICY
PERCENTAGE
Yes
No
98
2
67
Figure 7.14
Pricing Policy
No 2
Yes
98
20
40
60
80
100
120
PERCENTAGE
Very High
High
Medium
Low
0
11
83
6
68
Figure 7.15
Price Strategy
83
90
80
70
60
50
40
30
11
20
10
0
Very High
High
Medium
Low
Table 7.16
COMPETITORS
PERCENTAGE
Slice
Frooti
Maa
47
41
12
69
Figure 7.16
Competitors
12
Slice
Frooti
47
Maa
41
Table 7.17
PERCEPTION
PERCENTAGE
Very good
Good
1
30
70
Average
Bad
65
4
Figure 7.17
Perception
41
Very Good
30
Good
Average
Bad
65
HCCBPL
tetra
pack
products
is
average.
Chapter 8
FINDINGS AND SUGGESTIONS
8.1 FINDINGS
The most preferred mango drink by the customers is
Slice.
71
98% of the retailers are sure that the customers will buy
more if there is a better pricing strategy.
72
8.2 SUGGESTIONS
The company has to make efforts to make the retailers
pleased and satisfied with their services as they play an
important part in the distribution network. So the
company should increase the retailer satisfaction by :
73
Chapter 8
CONCLUSION
Soft drinks are an impulse product. The Indian
population is the largest in the world today which provides so
much of opportunity for the soft drink manufacturers. So,
they should implement apt strategies in order to attract more
customers and gain good market share.
From the above findings and suggestions, it can be
concluded that different pricing strategies, various promotional
activities like discount coupons, combo offers should be
followed in order to improve their sales, increase their market
share and gain market dominance over their competitors.
Market opportunity of Maaza can be widen through
keeping a sub unit of stock in Ernakulam district so that it can
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group, tastes
and preferences,
season, pricing,
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