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A STUDY ON BRAND AUDIT FOR HINDUSTAN COCA-COLA

BEVERAGES IN MADURAI DISTRICT

PROJECT REPORT

Submitted by
P NAGAMANI

MASTER OF BUSINESS ADMINISTRATION

SRI KRISHNA INSTITUTE OF MANAGEMENT


SUGUNAPURAM

COIMBATORE – 641008

JUNE 2014

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ABSTRACT
Marketing deals with identifying and meeting human needs and social needs. One of the
shortest definitions of marketing is “meeting needs profitably”. The consumer market
may be identified as the market for product and services that are purchased by individuals
as household for their personal consumption. Soft drinks are a typical consumer product,
purchased by individual, primarily to quench their thirst and also for refreshment.
Different types of soft drinks are available in the market and more or less the ingredients
of all soft drinks are almost same. The market of soft drinks is facing a cut throat
competition and many companies are floating in the market with their product with
different brand names. This study gives a detailed report about the retailer’s perception
towards HCCB. It also gives a clear picture of the reasons for choosing the specific
brands by the retailers and it categorizes the coke product by different types under FSN
status. This study is carried out in order to improve the sales of HCCB in Madurai area

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TABLE OF CONTENTS

S NO TITLE PAGE NO

1 INTRODUCTION
 Introduction
 Industry profile
 Company profile
 Objectives
 Limitations of the study

2 REVIEW OF THE LITERATURE

3 RESEARCH METHEDOLOGY
 Research design
 Sampling
 Sampling unit
 Sample size
 Data collection
 Tools used for analysis

4 ANALYSIS AND INTERPRETATION

5 FINDINGS AND SUGGESTIONS

6 CONCLUSION

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CHAPTER I

INTRODUCTION

Marketing is winning the customers mind and being able to serve the needs of the
customer. It is about understanding what consumers want and supplying it more conveniently.
Marketing deals with identifying and meeting human needs and social needs. One of the shortest
definitions of marketing is “meeting needs profitably”. The consumer market may be identified
as the market for product and services that are purchased by individuals as household for their
personal consumption. Soft drinks are a typical consumer product, purchased by individual,
primarily to quench their thirst and also for refreshment. Different types of soft drinks are
available in the market and more or less the ingredients of all soft drinks are almost same. The
market of soft drinks is facing a cut throat competition and many companies are floating in the
market with their product with different brand names.

The Indian soft drinks market is wide and big to control as India has all types of natural
seasons and different locations have different cultures. The northern parts of the country is quite
cold during the winter season and the south on the contrary, has high levels of humidity which is
when the consumer requires some chilled drinks that can satisfy his or her thirsts and provide
energy to sustain.

The demand for soft drinks is increasing day by day due to changing climatic conditions,
liking for fast food and changing culture. It includes all types of non-alcoholic, carbonated and
flavoured beverages. These artificially sweetened drinks are available in different flavours, sizes
and packages.

In olden days, the production took place on a smaller scale where the producer himself
took the responsibility of disposing the goods to the consumers. Later, due to the increase in
business and with further expansions, the majority of producers did not sell their goods directly
to consumers. It was the task of retailer to create a link between the producer and the end user.
The retailers were entrusted to create the required marketing strategy as prescribed by the
company to serve the needs of the final consumer, by sourcing products from the producer and
selling it to the consumer with promotions. The organization also implements its strategy through
the retailers.

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In this competitive world the producer has to decide through which way the goods are to
be distributed to the customers. The company also encouraged the concept of network marketing
with several middlemen into the sales force to arrange and distribute the products to the
consumer. To create business and expand the horizon of the company’s products, the retailers
were chosen and several motivational training and promotional programmes were introduced to
support the sales of the organization. Furthermore, it also gave adequate market coverage and
satisfied the buyer’s requirement.

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OBJECTIVES OF THE STUDY

Primary Objective

To understand the retailer’s satisfaction towards coca cola products and to increase the
market share of Coca Cola in Madurai.

Secondary Objectives

 To identify the reasons for choosing the specific brands by the retailers.
 To categorize the coke product by different types under FSN status.
 To create Brand Value, a study on select brand elements such as Ads, competition,
schemes, value, luxury status, passion, price and environmental friendly is performed.

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LIMITATIONS OF THE STUDY
 The organization requires the study on trade marketing that would enable the company to
understand the level of brand value that exists in the present markets served to the
customers. The organization wanted to constitute a project study on value creation for
Coke Brands.
 The organization also wants to improve their performances (marketing) in Madurai for
which Coke wanted to know their Strengths, Weaknesses, Opportunities and Threats
available from existing brand value of coke products.

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CHAPTER 2

2.1 Industry Profile and Major Players – Beverages

There are many leading companies that have prominent presence in the soft drink
industry. The leaders in the industry include companies like Coca-Cola, PepsiCo Inc., Cadbury
Schweppes and the list goes endless. According to the recent reports, the Annual Sales of Coca-
Cola Company has reached $32 Billion in Sales. The Coca-Cola product line has several popular
brands including Coca-Cola, Diet Coke, Fanta, Sprite, Mazaa, etc. selling over 400 drink brands
in about 200 nations. PepsiCo is the next top competitor with soft drink sales grossing $28
billion for the two beverage subsidiaries, PepsiCo beverages North America and PepsiCo
international. PepsiCo’s soft drink product line includes Pepsi, Mountain Dew, Miranda, Slice,
etc. which make up more than one quarter of its sales. Cadbury Schweppes, the third major
player had soft drink sales of $13 billion with a product line consisting of soft drinks such as
A&W Root Beer, Canada Dry and Dr. Pepper.

The products of these companies occupy large portions of the supermarkets shelf space,
often covering more territory than other food categories like dairy products, meat or produce.
The “Cola Wars”, usually called as the prototype of all marketing and branding struggles are
continuously expanding and products keep rolling out to the markets in high volumes. The
various brand ambassadors for all brands, and high infusion of advertisement and selling costs
through creation of better advertisement with these celebrities. One example of this is visible
with the ongoing war with VannilaCoka with Blue Pepsi. The greatest push in the last few years
have been in convincing the sales counters at schools, universities and other institutions to go for
either All-Coke or All-Pepsi products to create a better value. This strategy has also helped the
organization in increasing the demand for the product. Within the Third World Countries,
Marketing has evolved in its purest forms, unsullied by any pre-existing need or for Traditional
location. With the expanding markets across countries in Eastern Europe, China, India and
Mexico, these beverage companies have found local partners in bottling the essence to keep up
their extended reach to the customers. There are still many opportunities left with the rest of the
world, to replace hot beverage like coffee and tea with cold beverages among which these
companies are primarily categorized.

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Beverage market in India

Indian population, represented by more volume of Middle Class Income earners within
the One Billion populations, has seen a lower per capita income in consumption of soft drinks
that makes this market a competitive one with several prize contests for various soft drinks
companies to enter and evolve a strategy. With the broad base of population still living in rural
areas as compared to urban population, an average consumption of bottles consumed is much
less than four. Today the beverage market has understood the need, taste and preference of the
customer to come up with several new products with different flavours and non-carbonated
beverages that are growing in the pipeline.

Earlier, Coke and Pepsi dominated the market and together had a consolidated market
share of about 95%. By 2003, the Soft Drinks has been considered as an affluent, with more
than 90 percent of sales made covered all sections of the society under Lower, Middle and Upper
Middle Classes.

The Indian Food Market which is approximately valued at Rs.2,50,000Crores of which


the Value Added Food Products comprise of Rs.80,000 Crores. The industry is expected to
double its production by the year 2020. Much attention is not been given to this industry
supposed to be a vital one considering the latest amendments and the interest shown by the
successive governments in clearing the Food Security Bill ensuring the safety and availability of
food. The growth of the industry is almost 76 percent higher than the earlier growth that
happened before 1998. This growth of 76 percent was achieved between 1998 and 2002. It was
also the time when the company also grew in volume terms and had crossed 10,000 Million
Bottles per year from 5,670 Million Bottles.

Classification of Beverages

Soft Drinks are available in Glass Bottle, Aluminium Cans, and Pet bottles for home
consumption. Fountains also dispense them in disposable containers. Soft drinks are categorized
under the beverages industry. A classification is built within the Soft Drinks based on the
ingredients used for the preparation such as alcoholic and non-alcoholic etc. the classifications
are provided below:

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1. Alcoholic
2. Non-Alcoholic
 Carbonated Soft Drinks that include Cola, Lemon flavoured and Orange flavoured
Cola.
 Non-Carbonated that include Mango drinks.
The market can also be segmented on the basis of type of products namely Cola Products
and Non-Cola Products. The Cola Products account for nearly 61-62% of the total soft drinks
market. The brands that fall in this category are Pepsi, Coca-Cola, Thumbs Up, Coke, Pepsi, etc.
The Non-Cola Products constitutes 36% which can be further divided into four categories based
on the types of flavours available namely, orange, cloudy lime, clear lime and mango.

Soft Drink Production Area

The market preference is highly regionally based. Whilst the Cola drinks have main
markets in metro cities and northern states of UP, Punjab, and Haryana, the Orange flavoured
drink is popular in southern states. Besides these flavoured drinks, soda are also sold largely in
southern states including the bars. The western markets have preference towards mango
flavoured drinks. Diet coke presently constitutes just 0.7 percent of the total carbonated beverage
market.

Growth and Promotional activities

The government has adopted liberalized policies for the soft drink trade to give the
industry a boost and promote the Indian Brands internationally. Although the import and
manufacture of international brands like Pepsi and Coke is enhanced in India, the local brands
are being stabilized by advertisement, good quality, etc.

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2.2 COMPANY PROFILE

Mission & Vision of the Company

Mission

“Our Mission declares our purpose as a company. It serves as the standard against which
we weigh our actions and decisions. It is the foundation of our Manifesto:

 To refresh the world in body, mind and spirit.


 To inspire moments of optimism through our brands and our actions.
 To create value and make a difference everywhere we engage.”

Vision

The Vision of the Organization is provided as follows:

“Our Vision guides every aspect of our business by describing what we need to
accomplish in order to continue achieving sustainable growth.

People: Bringing a great place to work where people are inspired to be the best they can be.

Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy
people’s desires and needs.

Planet: Being a responsible citizen that makes a different by helping build and support
sustainable communities.

Profit: Maximising long-term return to share owners while being mindful of our overall
responsibilities.”

Vision 2020

The organization has also built up its vision for 2020. It is stated below:

The world is changing all around us. To ensure our business will continue to thrive over
the next 10 years and beyond, we are looking ahead to understand the trends and forces that will
shape our industry in the future. Our 2020 vision creates a long term destination for our business.

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It provides us with business goals that outline what we need to accomplish without global
bottling partners in order to continue winning in the market place and achieving sustainable,
quality growth. For each goal, we have a set of guiding principles and strategies for winning
throughout the entire Coca-Cola system.

Year on Year Growth of the Company

The year on year growth for the company has been 13 percent and it has recently reached
the sales of $35,119 Million with Net Income of nearly $11,809 Million, a growth of
approximately 73 percent in Income respectively.

Organization Structure

Chairman Mr. Muthar Kent


Executive Vice-President Mr. Gary P Fayard
Senior Vice-President Global Public Mr. Clyde C. Tuggle
Affairs and Communications
Direct Diplomatic Relations Ms. Janet A Howard
2.2.1 Values of the Company

Coca-Cola as an organization is guided by the shared values from both the employees as
individuals and the company as a whole. The values perceived by the organization are
categorized into seven different parameters upon which the organizations values are measured. It
is provided below:

Perceived Values Details of the Perceived Values


Leadership The courage to shape a better future
Passion Committed in Heart and Mind
Integrity Be real
Accountability If it is to be, it is up to me
Collaboration Leverage Collective Genius
Innovation Seek, Imagine, Create, Delight
Quality What We do, We do Well

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2.2.2 Product Profile

The Coca-Cola was created in 1886 by John Pemberton, a Pharmacist in Atlanta, Georgia
who sold syrup mixed foundation water as a portion for mental and physical disorders. At
present, there are nearly 27 varieties of Coke brands made by Coca-Cola. The first bottle of Coke
was sold 120 years ago on May 8,186 in Atlanta, Georgia.

The formula changed hands thrice before Asa. D. Candler added carbonation through
addition of ingredients like Sugarcane Syrup, Caffeine, and Coco Leaves to make the existing
product feel tasty and consumable. The Coke was registered as a Trademark in 1887 and by
1895, the product was being sold in every State and Territory of US. In 1899, the company had
almost franchised its bottling operation in US growing quickly to reach 370 Franchises by 1910.
By the end of 2003, Coca-Cola was rated as one of the world largest manufacturer, marketer and
distributor of non-alcoholic beverage concentrates and syrups with the bubble making the
difference.

The company had generated more than 70 percents of its income outside the US having
its Headquarters in Atlanta and the Local Operations in more than 200 countries worldwide.
Coca-Cola is recognized by more than 90 percent of the world’s population with more than
10,450 brands being consumed by customers each day.

Coca-Cola’s CSR Efforts

Coke’s responsibility to social welfare has been remarkable with more than US $30
Million being donated to Hurricane Katrina Evacuees, a donation of US $10 Million to Tsunami
Relief efforts in Asia and US $12 Million Financial contribution to September 11 Twin Tower
Disaster Relief Efforts.

Coca-Cola Growth in Value Terms

According to a 2007 Annual Report, Coca-Cola had almost distributed gallons of


products with sales figures read as 42 percent in US, 37% in Mexico, India, Brazil, Japan, and
the people’s Republic of China and 20% spread throughout the rest of the world. The Total head

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count of employees is approximately valued at 19,600 with a growth percentage of 50.4%. The
company owns nearly five Soft-Drinks brands as mentioned above. The other brands in non-
carbonated juice variety of products include, Minute Maid, PowerAde and Dasani Water in
North America. By late 2010, the company bought its bottler, Coca-Cola Enterprises, and had
renamed it as Coca-Cola Refreshment USA.

2.2.3 Global Expansion

The company’s first International Bottling Plant was opened in 1906 in Canada, Cuba
and Panama. By the end of 1920, Coca-Cola was bottled in 27 countries throughout the world
and was available in 51 more. Today, the company’s presence is available in more than 200
countries with over 400 brands.

The company was working for over 80 years on the founders goals i.e., to make Coke
available wherever and whenever consumers wanted it and in arm’s reach of desire. An
assessment was made on the Brand’s Valuation on the basis of how much it was likely to earn in
the future, the revenues that could be credited to the brand, and brand’s strength to determine the
risk of future earnings forecasts. Considerations for Global Expansion included Market
Leadership, Stability, and Global Reach, incorporating both geographical and cultural borders.

In Hong-Kong, heated Coke in served as a cold remedy. Coke advertises itself in 200
countries across the world. In Japan, people use money chips on their cell phones to pay for
drinks.

Turn of the century growth imperative

In contrast to the growth rates of 1980’s (5 to 7 percent annually), the sales of the
company has slowed down for carbonated soft drinks. The per capita consumption throughout
the world was a faction of the United States. Major Beverage Companies had to look elsewhere
for their shareholders demand. The looming opportunity for 21st Century was in the World’s
Developing Markets with their rapidly growing Middle Class Population.

From the beginning, the company understood the importance of Branding and the
creation of a distinct personality. Some of its catchy slogans like “It’s the real thing” (1942 and
1969), “Things go better with Coke” (1963), “Coke is it” (1982), “Can’t beat the feeling” (1987)

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and a 1992 return to “Can’t beat the real thing” linked that personality to the core value of each
generation, establishing Coke as the authentic, relevant and trusted refreshment of choice across
the decades and around the globe.

2.2.4 Coke in India

Coca-Cola was the leading soft drinks in India until 1977 when it left the country without
revealing its formula to the Government with reduced stake as per norms of the Foreign
Exchange Regulation Act (FERA) or Foreign Exchange Management Act (FEMA) which
undertook the total governance of foreign companies in India. Coke returned back to India by
1993, cementing its presence with a deal that gave the company ownership of the country’s top
soft drink brands and bottling network.

Coke’s acquisitions of various brands like Thumbs up, Limca, Maaza, Citra and Gold
Spot provided not only physical manufacturing, bottling and distribution advantage but also a
strong consumer preference. The excellent combination of Local and Global brands enabled the
company to exploit the benefits of Global Branding Trends in Tastes while also tapping into
Traditional Domestic Markets. The Indian Brands of Coca-Cola were joined lately by the
international brands like Diet Coke, Sprite, Fanta and Schweppes.

The company launched its water brand “Kinley” in 2001, the Energy Drink and the
powered concentrates hit the markets right from 1993 to 2003, helping the company to invest
more than US $1 Billion making it one of the top international investors.

The rural market comprising of 74 percent of the country’s population, 41 percent of the
middle class income earners, 58 percent of the population having a better disposable income, it
has almost become and attractive target to deliver the expected results. The Urban Vs Rural
growth is compared to be 24 and 37 percent respectively.

The company’s bottling divisions across the country have acquired the international
standard ISO 14001 Environment Management System Certificate. At present there are nearly 50
bottling plants under the Indian operations of Coca-Cola, out of which 25 of them are owned by
the company, with another 25 being owned by franchises. Apart from this, the company has
nearly 21 packing divisions which manufactures and packs a range of products.

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2.2.5 Regions of Operations in Coca-Cola, India

The company’s corporate office is located in Gurgaon. There are four regions namely
West, South an AP, East and North, South and AP covering Chennai, TN, Kerala, Vijayawada,
Nellore, Hyderabad and Visakhapatnam.

Business Models

Coca-Cola operates with a unique business model that covers the manufacturing of
Concentrates, Beverage Base, and Syrup that is well supported by the Corporate Services of
various units. The regions manufacture Bottles and Can Syrup. The company uses two different
models for Bottling operations namely Company Owned Bottling Operations (COBO) and
Franchise Owned Bottling Operations (FOBO). The pattern of distribution happens either with
direct operations and indirect operations. Otherwise known, the company operates through
Direct and Indirect Channels of operations.

2.2.6 Brand Localization Strategy: The Two India

Coca-Cola in order to promote its campaign for the products produced by the company,
created “India A”, a name that was given to market segments that included Metropolitan Areas
and Large towns representing only 4 percent of the population. It further created a social bonding
with apparitional messaging celebrating the benefits of increasing social and economic freedom
such as “Life Ho ToAisi” denoting “Life as it should be”. This created an Ad campaign that has
found successful tag line for their products.

The other India, believed to attract the rural market and to offer brands that communicate
the company’s image to the smaller towns, was created and named “India B” that includes
smaller towns and rural areas comprising of the rest 96 percent of the population. Coined as
“ThandaMatlab Coca-Cola” to serve the quenching out-of-home thirst, the product was
undifferentiated costing at Rs. 10 per bottle and becoming a luxury that only few could afford.
Coca-Cola, understanding the burden on its product pricing, introduced 200ml bottles and had
reduced its price to Rs. 5 respectively. The reduction in the price was compensated with the
targeted increase in the volume of the distribution with improved distribution infrastructure. The

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result of which was an increase in the volume of distribution from 80,000 bottles in 2001 to
1,60,000 bottles in 2003 and a market penetration from 13 percent to 25 percent.

2.2.7 Operational Structure

Coca-Cola is a world class company in “Low margin, high volume” business which
means sales of high volume for the product in order to be profit chart and compete in the global
market.

 Company Owned Bottling Operation (COBO)


 Franchise Owned Bottling Operation (FOBO)

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COBO
COBO stands for Company Owned Bottling Operations; COBO has been one of the
Coke’s biggest strategies, which has proved to be a winner. A bottling operation is a capital
intensive business, with markets in India being at the fourth level.
Apart from the capital cost of plant and equipment, the bottling company has to invest in
bottle and crates, truck and cooling structure vis-à-vis coolers and ice boxes at the retail points.
The industry estimates for these investments are between Rs.24 and Rs.30 per crate, cooler or
icebox or about 20 percent which is the price for the competition that the retailer creates. The
Excise and other tax duties amount to Rs. 40 per crates. COBO is a risk of Coke’s change in the
attitude of the organization from a marketing oriented to an operation oriented mindset.
In India, the Company Owned Bottling Operations are undertaken in Mumbai, Bangalore,
Ahmadabad, Chennai and Jalpaiguri units of the company’s plants.

FOBO
FOBO stands for Franchise Owned Bottling Operation. In India Pepsi have many
Franchise operations. Coca-Cola has taken a more capital intensive route of owning and running
its own plants alongside those of its franchises.
Coca-Cola has invested money in up gradation of plants operated by franchisees due to
weak financial worthiness of the franchise organizations. There were also interest free loans
provided by the organization for their operations.
The company has made several advantages with FOBO model. Firstly, it has enabled
Coke to Market operations as much as it has on its COBO model of business. Secondly, the
company’s investment in terms of the infrastructure cost is reduced since franchises would invest
in plants, machines, glass bottles, trucks and other amenities.
In India, the Franchise Owned Bottling Operations are located in places covering parts of
Delhi, Punjab, Andhra Pradesh, Calcutta and South Bengal. The different volumes of bottles
prepared by FOBO plants are listed in the below chart.

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Product Mix of Coca-Cola

Product Mix of Coca-Cola Bottles Available (in ML)


Coca-Cola 200 300 400 600 1250 2250
Thumbs up 200 300 400 600
Sprite 200 300 400 600 1250 2250
Limca 200 300 400 600 1250 2250
Fanta 200 300 400 600 1250 2250
Mazaa 200 - 500 - 1250 -
Kinley (Water) - - - - 1000 2000
Kinley (Soda) - 300 500 750 - -

Customers preference on Coca-Cola


Beverage Products Customer Preference
Coca-Cola Youngsters
Thumbs up Preferred by all type of customers
Sprite Youngsters
Limca Preferred by all type of customers
Fanta Preferred by ladies and kids
Mazaa Preferred by ladies and kids
Kinley (Water) Preferred by all type of customers
Kinley (Soda) Mostly those who consumer liquor

Competitors of HCCBPL
PepsiCo is the single largest competitor for Coca-Cola across the globe. PepsiCo has
launched products that are equally competent to Coca-Cola namely, Pepsi, Mountain Dew and
slice under the carbonated category and Tropicana Orange Juice brands, Gatorades sports drink
brands and Aquafina under non carbonated category. Apart from the above, Pepsi also sells Dole
Juices, and Lipton Ready-To-Drink. Another competitor is Kalimark Foods and Beverages that
produce Bovonto and has competed well with Coca-Cola and Pepsi especially in Madurai.

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CHAPTER III
REVIEW OF LITERATURE

Miller and Besser (2000) has conducted research in order to identify factors that
influence small-town consumers satisfaction with local independent retailers and the subsequent
relationships of consumer satisfaction to in-shopping, community attachment and support of
local independent retailers. Oliver’s expectancy-disconfirmation model (1980) was used as the
framework to predict consumer satisfaction. Their business strategies were being examined to
meet the changing expectations of their local consumers. It is essential that independent retailers
know their local customers and exploit niche strategies that big-box retailers do not provide. The
authors conducted the research and found out what is the factor that influences small town
consumers and their satisfaction level when they deal with retailers from unorganized sector.
How retailers from unorganized sector believe in making the relations with their customers so
that they keep on doing purchase from them only in coming tyke period.

The authors conducted the research and found out what is the factor that influences
small town consumers and their satisfaction level when they deal with retailers from unorganized
sector. How retailers from unorganized sector believe in making the relations with their
customers so that they keep on doing purchase from them only in coming tyke period.
Source: Miller, N.J. and Besser, T.L., (2000), “The importance of community values in small
business strategy formation: evidence from rural lowa”, Journal of Small Business Management,
Vol. 38, No. 1, Pg: 68-85.

Klein and Dawar (2004), has studied to find out which retail business practices lead to
perception of CSIR from customer’s perspective and to develop a measurement scale for this
construct. The analysis was conducted using quantitative data from paper based and online
survey, a high order, multi-group confirmatory factor analysis. It was found that there were
factors i.e. natural environment, local business, foreign economies, local employment, societal
rules, employee benefits, employee wages, local working conditions, employee discrimination,
foreign labour, sales practices, dishonesty, offensive material and pricing policies which
represent perception of CSIR in retailing.

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This paper will help us in knowing what are the factors that actually are the perception of
CSIR from customer point of view in retailing this will help us to know what actually the
customers think about the retail business whether it is organized or unorganized.
Source: Klein, J and Dawar, N (2004), “Consumer social responsibility and consumer’s
attributions and brand evaluations in product harm crisis”, International Journal of research in
Marketing, Vol.21 No-3, and Pg: 203-217.

Indian Council for Research on International Economic Relations (2007) has conducted a
research and found that there will be no negative impact on employment. At the same time, there
will be a positive effect on farmer’s earnings. Also, any adverse impact on small shops will wear
off over a period of time. The study has also found that the presence of organized retailers will
firm up the supply chain deficiencies, which has been bothering the sectors.

The above research states that there will be no negative impact on employment because
of the introduction of organized retail but this has been found in various studies that definitely
there will be a positive impact on unemployment. This research is a bit of unexpected one and
thus could prove to be a crucial one in giving new directions to the findings and
recommendations in the research.

Bakker, B. A. (1977) has found that product standardization principle can be applied
more in Business or Individual Marketing than in targeting end consumer segments. Industrial
customers being more rational knowledgeable, are prone to looking at more of a product’s
functional properties rather than aesthetics. It has also been proposed that some companies can
identify homogenous markets & target those similar markets and can manage without offering
customized products.

Retailer’s satisfaction can be achieved by improving service quality.


Ciavolino&Dahlgaard (2007) contend that service quality is the measure of service levels based
on the attributes of the core product. Such attributes include; Facility Layout-display of products,

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clean environment, clearlabelling. Other attributes can be location, process – queue management,
waiting time, express checkouts, supermarket operation hours, delivery time, additional services
like parking, parent & baby facilities, and loyalty/membership cards, produce variety of
groceries, durability, merchandise quality and merchandising.

The location of any store is always very important. Location can mean convenience and
accessibility. Location can also refer to the number of stores in a particular geographical setting.
According to Martinez-Ruiz et al (2010:280), suggest that once a location is near to the home
then transaction costs associated with purchase such as transport costs and time spent are likely
to be reduced.

According to Reilly (1931) who developed Reilly law of retail gravitation which
proposes that people are drawn to larger shopping thus larger cities tend to attract more
customers to shop their than smaller ones therefore the need for supermarkets to consider
location when putting up facilities. This is further supported by Craig et al (1984) who use the
central place theory to explain how people living far away are attracted to larger stores which are
centrally located in larger shopping malls offering more collection of goods and services than
those stores within their own vicinity offering less goods and services.

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CHAPTER IV

Research Methodology

Research is a growing need in any organization of the present world. It is helpful in


identifying the consumer needs and wants so as to launch a product or to bring about
improvement in the existing products. This is done to gain competitive edge over others. Success
of the research depends upon the methodology adopted. The study was based on descriptive
research.

Source of Data
Data is collected from two sources they are
 Primary Data
 Secondary Data

1. Primary Data
Primary Data is collected by using Depth Interview with the consumers of the product in
the market and also with a few retailers. This helped in finding out the factors for the Research
problem. Structured Questionnaire is used as the major tool for primary data collection
.

2. Secondary Data

The Secondary Data consists of information that already exist somewhere having been
collected for another purpose and researcher begin the research work by first going through the
secondary data. Here secondary data is collected from the company’s website.

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4.1 RESEARCH DESIGN

A research design is purely and simply the framework of plan a study that guides the
collection and analysis of data. It is a blue print for a complete study. It resembles the architects
blue print map for constructing a house.

Descriptive Research Design

A descriptive research is undertaken in order to a certain and be able to describe the


characteristics of the variable of interest in a situation. Descriptive research is also undertaken to
understand the characteristics of organizations that follow certain common practices. The goal of
a descriptive research is to offer to the researcher a profile or to describe relevant aspects of the
phenomena of interest from an individual, organizational, industry oriented, or other perspective

.
Sampling technique

The Sampling Technique used for this study is Convenience Sampling.

Convenience Sampling
It refers to the collection of information from members of the population who are
conveniently available to provide it. The most easily accessible members are chosen as subjects.
Convenience sampling is the best way of getting some basic information quickly and efficiently.

Sample Survey
A survey which is carried out using a sampling method, i.e., in which a proportion only
and not the whole population is surveyed.

24
Sampling Design

There are two types of sampling designs. They are probability and non probability
sampling.
 Probability Sampling: In probability sampling the elements in the population have some
known chance or probability of being selected as sample subjects.
 Non-Probability Sampling: The elements in the population do not have any probability
attached to their being chosen as sample subjects.
This means that findings from the study of the sample cannot be confidently generalized
to the population.

Tools of Data Collection

The communication approach employed is “Structured Questioning” that is Personal


Interview with the aid of Printed Questionnaire.

25
CHAPTER V

DATA ANALYSIS AND INTERPRETATION

TABLE 5.1

S.No PLACES IN MADURAI % OF RESPONDENTS

1 Madurai north 48%

2 Madurai west 6%

3 Madurai south 21%

4 Madurai east 25%

Area wise classification in Madurai

CHART 5.1

Area
60

50

40

30
North, 48
20

South, 21 East, 25
10
West, 6
0
North South West East

INTERPRETATION

By using percentage analysis from the above table it is clear that 48% of the outlet from Madurai
north,6% of outlet from Madurai west , 21% of outlet from Madurai south and 25% of outlets
from madurai east

26
TABLE 5.2

EXPERIENCES IN BUSINESS

S.No No of Years in Experience % of outlets

1 0-5 YEARS 21%

2 6-10 YEARS 48%

3 11-15 YEARS 20%

4 16-20 YEARS 11%

CHART 5.2

EXPERIENCE
60
6-10years, 48
50

40

30
0-5, 21 11-15years, 20
20
16-20, 11
10

0
0-5 6-10years 11-15years 16-20

INTERPRETATION:

From the above table it is clear that 21% of outlets being for 0-5 years,48% of outlets being for
6-10 years, 20% of outlets being for 20% and 11% of outlets being for 16-20 years so it is clear
that 79% of outlets are having above 6 years’ experience.

27
TABLE 5.3

TYPE OF RETAIL OUTLETS

S.No Type of outlets % Of outlets

1 Restaurant 3%

2 Petty shop 44%

3 Bakery/coffee 24%

4 Grocery shop 23%

5 Mess/canteen 6%

CHART 5.3

TYPE OF OUTLET

Restaurant, 3
Petty Shop, 44

Mess/Canteen, 6

Grocery , 23

Bakery/Coffee, 24

0 5 10 15 20 25 30 35 40 45 50

INTERPRETATION:

From the above table it is clear that 3% of outlets are restaurant, 44% of outlets are petty shop,
23% of outlets are grocery shops, and 6% of outlets are mess/canteen. So it is clear that most of
the outlets are petty shops.

28
TABLE 5.4

BRAND MOVEMENT IN RETAILS

S.No Brands % of outlets

1 Coka cola 75%

2 Pepsi 25%

3 Bovonto 0%

4 Torino 0%

CHART 5.4

BRAND
80
Coke, 75
70
60
50
40
30
Pepsi, 25
20
10
Bovonto, 0 Torino, 0
0
Coke Pepsi Bovonto Torino

INTERPRETATION:

From the above table it is clear that 75% of respondents they are like to buy and sell coke brands,
and 25% of respondents are like to sell Pepsi.

29
TABLE 5.5

REASONS FOR COKE PREFERENCE BY THE RETAILERS

S.No Reason for choosing the brand % of respondents

1 More margin 20%

2 High demand 42%

3 Adequate supply 38%

CHART 5.5

Reason
More Margin
20%

Adequate Supply
38%

High Demand
42%

INTERPRETATION:

From the above table 20% of respondents are choosing their brand because of more margin, 42%
of respondents are choosing their brand because of high demand of the product and 38% of
respondents are choosing their because of adequate supply.it is clear that most respondents are
buying the brand because of demand.

30
TABLE 5.6

AVERAGE SALES PER MONTH IN A SHOP

S.No Average sales of month % of outlets

1 0-20 cases 60%

2 20-50 cases 32%

3 50-70 cases 5%

4 70-100 cases 3%

5 Above 100 cases 0%

CHART 5.6

Average Sales

70-100 3%

50-70 5%

20-50 32%

0-20 60%

0 10 20 30 40 50 60 70

INTERPRETATION:

From the above table 60% of outlets are selling 0-20 cases per month, 32% of outlets are selling
20-50 cases, 5% of outlets are selling 50-70 cases and 3% of outlets are selling 70-100 cases.

31
TABLE 5.7

PREFERENCE OF COKE QUANTITY BY CUSTOMERS

S.No QUANTITY % of liking

1 200ml 54%

2 400ml 28%

3 600ml 9%

4 1.25ml 7%

5 2.25ml 2%

CHART 5.7

Coke
2250Ml 2%

1250Ml 7%

600Ml 9%

400Ml 28%

200Ml 54%

0 10 20 30 40 50 60

INTERPRETATION:

From the above table it is clear about 54% of respondents said that customers like to buy 200ml,
28% of respondents said that customers are like to buy 400ml of coke, 9% of respondents said
that customers are like to buy 600ml, 7% of respondents said that customers are like to buy
1.25lt and 2% of respondents said that customers are like to buy 2.25ltr.

32
TABLE 5.8

PREFERENCE OF FANTA QUANTITY BY CUSTOMERS

S.No QUANTITY % of liking

1 200ml 41%

2 400ml 35%

3 600ml 9%

4 1.25ml 11%

5 2.25ml 4%

CHART 5.8

2250Ml
4%
Fanta
1250Ml
11%

600Ml
9% 200Ml
41%

400Ml
35%

INTERPRETATION:

From the above table it is clear about 41% of respondents said that customers like to buy 200ml,
35% of respondents said that customers are like to buy 400ml, 9% of respondents said that
customers are like to buy 600ml, 11% of respondents said that customers are like to buy 1.25lt
and 4% of respondents said that customers are like to buy 2.25ltr.

33
TABLE 5.9 PREFERENCE OF SPRITE BY THE CUSTOMERS

S.No QUANTITY % of liking

1 200ml 50%

2 400ml 25%

3 600ml 12%

4 1.25ml 10%

5 2.25ml 3%

CHART 5.9

2250Ml
3% Sprite
1250Ml
10%

600Ml
12%
200Ml
50%
400Ml
25%

INTERPRETATION:

From the above table it is clear about 50% of respondents said that customers like to buy 200ml,
25% of respondents said that customers are like to buy 400ml, 12% of respondents said that
customers are like to buy 600ml, 10% of respondents said that customers are like to buy 1.25lt
and 3% of respondents said that customers are like to buy 2.25ltr.

34
TABLE 5.10

PREFERENCE OF LIMCA BY CUSTOMERS

S.No QUANTITY % of liking

1 200ml 42%

2 400ml 39%

3 600ml 14%

4 1.25ml 5%

5 2.25ml 0%

CHART 5.10

1250Ml
5%

600Ml
14%
200Ml
42% Limca
400Ml
39%

INTERPRETATION:

From the above table it is clear about 42% of respondents said that customers like to buy 200ml,
39% of respondents said that customers are like to buy 400ml, 14% of respondents said that
customers are like to buy 600ml, 5% of respondents said that customers are like to buy 1.25lt and
0% of respondents said that customers are like to buy 2.25ltr.

35
TABLE 5.11

PREFERENCE OF THUMBS UP BY THE CUSTOMERS

S.No QUANTITY % of liking

1 200ml 38%

2 400ml 48%

3 600ml 11%

4 1.25ml 3%

5 2.25ml 0%

CHART 5.11

1250Ml
3% Thumbs up

600Ml
11%
200Ml
38%

400Ml
48%

INTERPRETATION:

From the above table it is clear about 38% of respondents said that customers like to buy 200ml,
48% of respondents said that customers are like to buy 400ml, 11% of respondents said that
customers are like to buy 600ml, 3% of respondents said that customers are like to buy 1.25lt and
0% of respondents said that customers are like to buy 2.25ltr.

36
TABLE 5.12

PREFERENCE OF MAZZA BY CUSTOMERS

S.No QUANTITY % of liking

1 200ml 51%

2 400ml 16%

3 600ml 23%

4 1.25ml 10%

5 2.25ml 0%

CHART 5.12

Maaza

1500Ml 10%

600Ml 23%

400Ml 16%

200Ml 51%

0 10 20 30 40 50 60

INTERPRETATION:

From the above table it is clear that about 51% of respondents said that customers like to buy
200ml, 16% of respondents said that customers are like to buy 400ml, 23% of respondents said
that customers are like to buy 600ml, 10% of respondents said that customers are like to buy
1.25lt.

37
TABLE 5.13

PREFERENCE OF KINLEY WATER BY CUSTOMERS

S.No QUANTITY % of liking

1 1Lltr 90%

2 2ltr 10%

CHART 5.13

Kinley Water

2ltr
10%

1ltr
90%

INTERPRETATION:

From the above table it is clear about 90% of respondents said that customers like to buy 1ltr,
10% of respondents said that customers are like to buy 2ltr.

38
TABLE 5.14

PREFERENCE OF KINLEY SODA BY CUSTOMERS

S.No QUANTITY % of liking

1 300ml 36%

2 400ml 24%

3 750ml 40%

CHART 5.14

Kinley Soda

1
3
36%
40%

2
24%

INTERPRETATION:

From the above table it is clear about 63% of respondents said that customers like to buy 300ml,
24% of respondents said that customers are like to buy 400ml, 40% of respondents said that
customers are like to buy 600ml.

39
TABLE 5.15

FSN STATUS OF COKE PRODUCTS IN RETAILS

S.No FSN Status % of respondents

1 Fast moving 43%

2 Slow moving 54%

3 Non moving 3%

CHART 5.15

Non-Moving
3% Coke FSN

Moving
43%
Slow Moving
54%

INTERPRETATION:

From the above table it is clear that 43% of respondents said coke is the fast moving product,
54% of respondents said that coke is slow moving and 3% of respondents said that coke is non-
moving in their outlet

40
TABLE 5.16 ABOUT FSN STATUS IN OUTLET

S.No FSN Status % of respondents

1 Fast moving 64%

2 Slow moving 36%

3 Non moving 0%

CHART 5.16

FSN Fanta
Non-Moving
0%

Slow Moving
36%
Moving
64%

INTERPRETATION:

From the above table it is clear that 64% of respondents said fanta is the fast moving product,
36% of respondents said that fanta is slow moving and 0% of respondents said that fanta is non-
moving in their outlet. So it is clear that most of respondent said Fanta is fast moving product.

41
TABLE 5.17 ABOUT FSN STATUS IN OUTLET

S.No FSN Status % of respondents

1 Fast moving 84%

2 Slow moving 13%

3 Non moving 3%

CHART 5.17

Non-Moving
3% FSN Sprite
Slow Moving
13%

Moving
84%

INTERPRETATION:

From the above table it is clear that 84% of respondents said sprite is the fast moving product,
13% of respondents said that sprite is slow moving and 3% of respondents said that sprite is non-
moving in their outlet. So it is clear that most of respondent said sprite is fast moving product.

42
TABLE 5.18 ABOUT FSN STATUS IN OUTLET

S.No FSN Status % of respondents

1 Fast moving 35%

2 Slow moving 31%

3 Non moving 34%

CHART 5.18

FSN Limca

Moving
Non-Moving 35%
34%

Slow Moving
31%

INTERPRETATION:

From the above table it is clear that 35% of respondents said limca is the fast moving product,
31% of respondents said that limca is slow moving and 34% of respondents said that limca is
non- moving in their outlet.

43
TABLE 5.19 ABOUT FSN STATUS IN OUTLET

S.No FSN Status % of respondents

1 Fast moving 5%

2 Slow moving 25%

3 Non moving 70%

CHART 5.19

FSN Thumbs up
Moving
5%

Slow Moving
25%
Non-Moving
70%

INTERPRETATION:

From the above table it is clear that 5% of respondents said thumbsup is the fast moving product,
25% of respondents said that thumbsup is slow moving and 70% of respondents said that
thumbs up is non- moving in their outlet.

44
TABLE 5.20

ABOUT FSN STATUS IN OUTLET

S.No FSN Status % of respondents

1 Fast moving 80%

2 Slow moving 12%

3 Non moving 8%

CHART 5.20

FSN Maaza
Non-Moving
8%
Slow Moving
12%

Moving
80%

INTERPRETATION:

From the above table it is clear that 80% of respondents said mazza is the fast moving product,
12% of respondents said that mazza is slow moving and 8% of respondents said that mazza is
non- moving in their outlet. So it is clear that most of respondent said mazza is fast moving
product.

45
TABLE 5.21

ABOUT FSN STATUS IN OUTLET

S.No FSN Status % of respondents

1 Fast moving 60%

2 Slow moving 16%

3 Non moving 24%

CHART 5.21

FSN KINLEY Water

Non-Moving
24%

Slow Moving
16% Moving
60%

INTERPRETATION:

From the above table it is clear that 60% of respondents said kinley is the fast moving product,
16% of respondents said that kinley is slow moving and 24% of respondents said that kinley is
non- moving in their outlet. So it is clear that most of respondent said kinley is fast moving
product.

46
TABLE 5.22

ABOUT FSN STATUS IN OUTLET

S.No FSN Status % of respondents

1 Fast moving 5%

2 Slow moving 16%

3 Non moving 79%

CHART 5.22

FSN KINLEY Soda


Moving
5%

Slow
Moving
16%

Non-Moving
79%

INTERPRETATION:

From the above table it is clear that 5% of respondents said kinley soda is the fast moving
product, 16% of respondents said that kinley soda is slow moving and 79% of respondents said
that kinley soda is non- moving in their outlet.

47
TABLE 5.23 STOCK REQUIREMENTS FOR COKE BRANDS

S.No Crates needed % of outlets

1 Below 2 crates 87%

2 3 crates 7%

3 4 crates 6%

4 Above 5 crates 0%

CHART 5.23

4 Crates
Coke Requirment
6%

3 Crates
7%

Below 2
87%

INTERPRETATION:

From the above table it is clear that 87% of outlet’s stock requirements is below 2 crates, 7% of
outlet’s stock requirements is 3 crates,6% of outlet’s stock requirements is 4 crates and 0% of
outlet’s stock requirements is above 5 crates.so most of respondents said that their stock
requirement is below 2 crates.

48
TABLE 5.23 STOCK REQUIREMENTS FOR COKE BRANDS

S.No Crates needed % of outlets

1 Below 2 crates 73%

2 3 crates 20%

3 4 crates 7%

4 Above 5 crates 0%

CHART 5.23

Fanta Requirement

4 Crates 4 Crates, 7%

3 Crates 3 Crates, 20%

Below 2 crates, 73%

Below 2

0 10 20 30 40 50 60 70 80

INTERPRETATION:

From the above table it is clear that 73% of outlet’s stock requirements is below 2 crates, 20% of
outlet’s stock requirements is 3 crates,7% of outlet’s stock requirements is 4 crates and 0% of
outlet’s stock requirements is above 5 crates.so most of respondents said that their stock
requirement is below 2 crates.

49
TABLE 5.24 STOCK REQUIREMENTS FOR COKE BRANDS

S.No Crates needed % of outlets

1 Below 2 crates 76%

2 3 crates 16%

3 4 crates 8%

4 Above 5 crates 0%

CHART 5.24

4 Crates Sprite Rquirement


8%

3 Crates
16%

Below 2 crates
76%

INTERPRETATION:

From the above table it is clear that 76% of outlet’s stock requirements is below 2 crates, 16% of
outlet’s stock requirements is 3 crates,8% of outlet’s stock requirements is 4 crates and 0% of
outlet’s stock requirements is above 5 crates.so most of respondents said that their stock
requirement is below 2 crates.

50
TABLE 5.25 STOCK REQUIREMENTS FOR COKE BRANDS

S.No Crates needed % of outlets

1 Below 2 crates 80%

2 3 crates 13%

3 4 crates 7%

4 Above 5 crates 0%

CHART 5.25

Limca Requirement

4 Crates 4 Crates, 7%

3 Crates 3 Crates, 13%

Below 2 Below 2crates, 80%

0 10 20 30 40 50 60 70 80 90

INTERPRETATION:

From the above table it is clear that 80% of outlet’s stock requirements is below 2 crates, 13% of
outlet’s stock requirements is 3 crates,7% of outlet’s stock requirements is 4 crates and 0% of
outlet’s stock requirements is above 5 crates.so most of respondents said that their stock
requirement is below 2 crates.

51
TABLE 5.26 STOCK REQUIREMENTS FOR COKE BRANDS

S.No Crates needed % of outlets

1 Below 2 crates 87%

2 3 crates 6%

3 4 crates 7%

4 Above 5 crates 0%

CHART 5.26

Thumbsup Requirement

4 Crates 4 Crates, 7%

3 Crates 3 Crates, 6%

Below 2 Below 2crates, 87%

0 20 40 60 80 100

INTERPRETATION:

From the above table it is clear that 87% of outlet’s stock requirements is below 2 crates, 6% of
outlet’s stock requirements is 3 crates,7% of outlet’s stock requirements is 4 crates and 0% of
outlet’s stock requirements is above 5 crates.so most of respondents said that their stock
requirement is below 2 crates.

52
TABLE 5.26 STOCK REQUIREMENTS FOR COKE BRANDS

S.No Crates needed % of outlets

1 Below 2 crates 64%

2 3 crates 25%

3 4 crates 11%

4 Above 5 crates 0%

CHART 5.26

Maaza Requirement

4 Crates 4 Crates, 11%

3 Crates 3 Crates, 25%

Below 2 crates, 64%

Below 2

0 10 20 30 40 50 60 70

INTERPRETATION:

From the above table it is clear that 64% of outlet’s stock requirements is below 2 crates, 25% of
outlet’s stock requirements is 3 crates,11% of outlet’s stock requirements is 4 crates and 0% of
outlet’s stock requirements is above 5 crates.so most of respondents said that their stock
requirement is below 2 crates.

53
TABLE 5.27 STOCK REQUIREMENTS FOR COKE BRANDS

S.No Crates needed % of outlets

1 Below 2 crates 73%

2 3 crates 14%

3 4 crates 13%

4 Above 5 crates 0%

CHART 5.27

Water Requirement

4 Crates 4 Crates, 13%

3 Crates 3 Crates, 14%

Below 2 crates, 73%

Below 2

0 10 20 30 40 50 60 70 80

INTERPRETATION:

From the above table it is clear that 73% of outlet’s stock requirements is below 2 crates, 14% of
outlet’s stock requirements is 3 crates,13% of outlet’s stock requirements is 4 crates and 0% of
outlet’s stock requirements is above 5 crates.so most of respondents said that their stock
requirement is below 2 crates.

54
TABLE 5.28 STOCK REQUIREMENTS FOR COKE BRANDS

S.No Crates needed % of outlets

1 Below 2 crates 89%

2 3 crates 4%

3 4 crates 7%

4 Above 5 crates 0%

CHART 5.28

Kinley Soda Requirement


4 Crates 4 Crates, 7%

3 Crates 3 Crates, 4%
Below 2crates, 89%

Below 2

0 10 20 30 40 50 60 70 80 90 100

INTERPRETATION:

From the above table it is clear that 89% of outlet’s stock requirements is below 2 crates, 4% of
outlet’s stock requirements is 3 crates,7% of outlet’s stock requirements is 4 crates and 0% of
outlet’s stock requirements is above 5 crates.so most of respondents said that their stock
requirement is below 2 crates.

55
TABLE 5.29 TIME PERIOD FOR ORDER REPLENSHED

S.No TIME PERIOD % OF OUTLETS

1 Daily 0%

2 Weekly once 28%

3 Weekly twice 59%

4 Monthly once 5%

5 Monthly twice 8%

CHART 5.29

Monthly twice Order Daily


8%
0%
Monthly once
5%

Weekly once
28%

Weekly twice
59%

INTERPRETATION:

From the above table it is clear that 59% of the respondents replenished their order twice in a
week and 28% of the respondents made their order once in a week. More over 5% of the
respondents place their order monthly once and 8% twice in a month.

56
TABLE 5.30 COLD STORAGE

S.No COLD STORAGE % OF RESPONDENTS

1 YES 100%

2 NO 0%

CHART 5.30

Cold Storage No
0%

Yes
100%

INTERPRETATION:

It is clear that 100% of the respondent having cold storage in their outlets.

57
TABLE 5.31 COOLER

S.No Cold storage used in % of outlets

1 Provided by the company 53%

2 Provided by the competitor 24%

3 Own 23%

CHART 5.31

Cooler

Own
23%

Provided Provided by the


by the company
competitor 53%
24%

INTERPRETATION:

It is clear from the above table 53% of respondents having coca cola cooler, 24% of respondents
having the cooler which is provided by the compititor and 23% of respondents having their own
cooler.

58
TABLE 5.32 COCA COLA CREATES GOOD ADVERTISEMENTS

S.No Particulars % of respondents

1 Strongly agree 59%

2 Agree 34%

3 Neutral 4%

4 Disagree 3%

5 Strongly disagree 0%

CHART 5.32

Disagree Advertisement
3%
Neutral
4%

Agree
34% Strongly Agree
59%

INTERPRETATION :

It is clearly 59% of respodents strongly agree coca cola creates good advertisment,34% of
respondents agree the coca cola creates good advertisement. Moreover 4% of respondents are
neutral and 3% disagree.

59
TABLE 1.33 COCA COLA STILL REMAINS AS DOMINANCE SOFT DRINK

S.No Particulars % of respondents

1 Strongly agree 11%

2 Agree 45%

3 Neutral 35%

4 Disagree 8%

5 Strongly disagree 1%

CHART 5.33

Strongly Disagree
1% Dominance
Disagree Strongly Agree
8% 11%

Neutral
35%
Agree
45%

INTERPRETATION:

From the above table it is clear that 45% of respondents agree that coca-cola still remains
dominant soft dinks, 11% of respondents strongly agree that,35% of respondents are neutral.
Moreover 8% of respondents diagree and 1% of respondent is strongly disagree.

60
TABLE 5.34 COCA COLA OFFERED GOOD SCHEMES

S.No Particulars % of respondents

1 Strongly agree 22%

2 Agree 45%

3 Neutral 32%

4 Disagree 1%

5 Strongly disagree 0%

CHART 5.34

Disagree Scheme Strongly


Disagree
1%
0%

Strongly
Agree
Neutral
22%
32%

Agree
45%

INTERPRETATION:

It is clearly that from tha above table 45% of the respondents agree that the coca-cola offered
good scheme,32% of respondents are neutral, 22% of respondents strongly agree that coca-cola
offered goog schemes and 1% of respondent disagree that.

61
TABLE 5.35 COCA COLA SATISFY CUSTOMERS THIRST

S.No Particulars % of respondents

1 Strongly agree 51%

2 Agree 36%

3 Neutral 13%

4 Disagree 0%

5 Strongly disagree 0%

CHART 5.35

Thirst Strongly
Disagree Disagree
0% 0%

Neutral
13%

Strongly Agree
Agree 51%
36%

INTERPRETATAION:

Among the respondents 51% strongly agree that HCCB products satisfy customer’s thirst, 36%
agree and 13% respondents are neutral with the question

62
TABLE 5.36 COCA COLA PRODUCTS LUXURY STATUS

S.No Particulars % of respondents

1 Strongly agree 18%

2 Agree 28%

3 Neutral 37%

4 Disagree 17%

5 Strongly disagree 0%

CHART 5.36

Strongly Luxury
Disagree
0%

Disagree Strongly
17% Agree
18%

Agree
Neutral
28%
37%

INTERPRETATION:

From the above table it is clearly shown that 37% of respondents are neutral for choosing HCCB
products for its luxury status and 28% agree it.

63
TABLE 5.37 THE PASSION CREATED BY COMPANY HELP FOR SALES

S.No Particulars % of respondents

1 Strongly agree 26%

2 Agree 38%

3 Neutral 36%

4 Disagree 0%

5 Strongly disagree 0%

CHART 5.37

Passion

Neutral
36% Strongly Agree
26%

Agree
38%

Interpretation:

Among the respondents 38% Agree that the passion created by the company create sale
and next to that 36% are neutral towards it.

64
TABLE 5.38 THE PRICE OF THE COCA COLA IS RESONABLE

S.No Particulars % of respondents

1 Strongly agree 21%

2 Agree 37%

3 Neutral 39%

4 Disagree 3%

5 Strongly disagree 0%

CHART 5.38

Disagree Price Strongly


3% Disagree
0%

Strongly
Agree
21%
Neutral
39%

Agree
37%

Interpretation:

Among the respondents 39% Neutal that Price of HCCB products are reasonably fair, 37% agree
and 21% respondents are Strongly agree with the question

65
TABLE 5.39 SUCCESSFULLY FACING CHALLENGE OF ENVIRONMENTAL DEGRADATION

S.No Particulars % of respondents

1 Strongly agree 28%

2 Agree 37%

3 Neutral 34%

4 Disagree 1%

5 Strongly disagree 0%

CHART 5.39

Disagree
Challenge Strongly Disagree
1% 0%

Neutral
34% Strongly Agree
28%

Agree
37%

Interpretation:

Among the respondents 37% Agree that HCCB has faced the environmental challenges, 34%
neutral and 28% respondents are strongly agree with the question.

66
TABLE 5.40 QPDS SCHEMES ARE SATISFACTORY

S.No Particulars % of respondents

1 Strongly agree 16%

2 Agree 44%

3 Neutral 38%

4 Disagree 2%

5 Strongly disagree 0%

CHART 5.40

Disagree QPDS Strongly Disagree


2% 0%

Strongly
Agree
16%
Neutral
38%

Agree
44%

Interpretation:

Among the respondents 44% Agree that QPDS of HCCB is satisfactory than other beverages,
38% neutral and 16% respondents are strongly agree with the question

67
TABLE 5.41 SCHEMES COMPARED TO OTHER BRANDS

S.No Particulars % of respondents

1 Strongly agree 10%

2 Agree 28%

3 Neutral s 57%

4 Disagree 5%

5 Strongly disagree 0%

CHART 5.41

Strongly
Disagree SCHEME Disagree
5% 0% Strongly Agree
10%

Agree
28%
Neutral
57%

Interpretation:

Among the respondents 57% Neutral on schemes offered for select and seasonal products from
other brands have edge over coca-cola brands, 28% agree and 10% respondents are Strongly
agree with the question

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TABLE 5.42 PROMOTIONAL EFFORTS ARE EFFECTIVE

S.No Particulars % of respondents

1 Strongly agree 38%

2 Agree 45%

3 Neutral 17%

4 Disagree 0%

5 Strongly disagree 0%

CHART 5.42

Disagree
0% Promotion Strongly
Disagree
0%

Neutral
17%

Strongly Agree
38%

Agree
45%

Interpretation:

Among the respondents 45% strongly agree that the promotional efforts of coca-cola brands
through various channels are effective and create sale, 38% strongly agree and 17% respondents
are neutral with the question

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TABLE 5.43 OPERATING PROCEDURES

S.No Particulars % of respondents

1 Strongly agree 29%

2 Agree 48%

3 Neutral 23%

4 Disagree %0

5 Strongly disagree 0%

CHART 5.43

Disagree Operating Procedure


0%
Strongly Disagree
0%

Neutral
23%
Strongly Agree
29%

Agree
48%

Interpretation:

Among the respondents 48% agree that the operating procedure and systems for coca-
cola brands are satisfactory than the competitors brands, 29% strongly agree and 23%
respondents are neutral with the question

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CHI-SQUARE

Brand More margin High demand Adequate supply TOTAL


Pepsi 7 11 7 25
Coka cola 36 20 19 75
Bovonto 0 0 0 0
Torino 0 0 0 0
TOTAL 43 31 26 100

NULL HYPOTHESIS (Ho):

There is no association between brand and reason for choosing brand.

ALTERNATIVE HYPOTHESIS (H):

There is an association between brand and reason for choosing brand.

Observed Expected(Oi (Oi – (Oi -


– Ei)^2 Ei) ^2
Frequency Frequency Ei) / Ei
(Oi) (Ei)

7 10.75 - 14.0625 1.308


3.75
11 7.75 3.25 10.5625 1.363
7 6.5 0.5 0.25 0.038
36 32.25 3.75 14.0625 0.436
20 23.25 - 10.5625 0.454
3.25
19 9.5 9.5 90.25 9.500
Total 13.100

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Calculation

E1=43*25/100 = 10.75

E2=31*25/100 = 7.75

E3=26*25/100 = 6.5

E4=43*75/100 = 32.25

E5=31*75/100 = 23.25

E6=26*75/100 = 9.5

CALCULATED VALUE X^2 = 13.1

TABLE VALUE X^2 = 12.592

DEGREE OF FREEDOM = (r-1)(c-1)

= (4-1)(3-1)

= 3*2 =6

DEGREE OF FREEDOM= 6 (@ 5% Significant level)

Interpretation:

Since calculated value is greater than the table value Null Hypothesis is rejected. There exists a
significance difference between the brand and reason for choosing brand.

72
CHAPTER V

FINDINGS & SUGGESTION

Findings

Percentage Analysis

 Coca-Cola remains to be the Dominant Soft Drinks in Madurai North Region of Madurai
City.
 Among the retailers surveyed the maximum number of years of experience in business
ranges between 6 and 10 years.
 Within the type of retail outlets to which Coca-Cola distributes products, Petty Shops and
Bakery Shops carry the highest percentage in terms of products.
 Among the retailers surveyed 75 percent of the respondents have choose to buy Coke
Brand.
 Among the retailers surveyed 42 percent of the respondents prefer Coke for High
Demand.
 Among the retailers surveyed 60 percent of them state their average monthly sales in
volume terms range between 0 to 20 bottles.
 Among the retailers surveyed, 54 percent of the respondents have stated 200ml of Coke
bottles are highly chosen by customers to be purchased in their retail shops.
 Among the retailers surveyed, 50 percent of the resopndents have stated 200ml of Fanta
bottles are highly chosen by customers to be purchased in their retail shops.
 Among the retailers surveyed, 42 percent of the respondents have stated 400ml of Sprite
bottles are highly chosen by customers to be purchased in their retail shops.
 Among the retailers surveyed, 44 percent of the respondents have stated 600ml of Limca
bottles are highly chosen by customers to be purchased in their retail shops.
 Among the retailers surveyed, 51 percent of the respondents have stated 600ml of Maaza
are highly chosen by customers to be purchased in their retail shops.
 Among the retailers surveyed, 91 percent of the respondents have stated 1ltr of water are
highly chosen by customers to be purchased in their retail shops.

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 Among the retailers surveyed, 40 percent of the respondents have stated 600ml of Soda
are highly chosen by customers to be purchased in their retail shops.
 Among the retailers surveyed, most of the respondents have stated Coke as Slow Moving
Coca-Cola products.
 Among the retailers surveyed, most of the respondents have stated Fanta as Fast Moving
Coca-Cola products.
 Among the retailers surveyed, most of the respondents have stated Sprite as Fast Moving
Coca-Cola products.
 Among the retailers surveyed, most of the respondents have stated Limca as Fast Moving
Coca-Cola products.
 Among the retailers surveyed, most of the respondents have stated Maaza as Fast Moving
Coca-Cola products.
 Among the retailers surveyed, most of the respondents have stated Water as Fast Moving
Coca-Cola products.
 Among the retailers surveyed, most of the respondents have stated Soda as Non Moving
Coca-Cola products.
 Among the retailers surveyed, most of the respondents purchase Below 2 crates of Coke
every week.
 Among the retailers surveyed, most of the respondents purchase Below 2 crates of Fanta
every week.
 Among the retailers surveyed, most of the respondents purchase Below 2 crates of Sprite
every week.
 Among the retailers surveyed, most of the respondents purchase Below 2 crates of Limca
every week.
 Among the retailers surveyed, most of the respondents purchase Below 2 crates of Maaza
every week.
 Among the retailers surveyed, most of the respondents purchase Below 2 crates of Water
every week.
 Among the retailers surveyed, most of the respondents purchase Below 2 crates of Soda
every week.

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 Stock ordering of retailers highly comes in weekly twice.
 Among the retailers surveyed, most of the respondents have cooler provided by the
company.
 Good advertisement is customer 59% has choosing strongly agree.
 Dominance of Soft Drinks the 44% customer is has choosing agree.
 Satisfying their thirst the 51% customer in has choosing strongly agree.
 Luxury status 37% of customer in has choosing neutral.
 Passion created to customer 38% in has choosing agree.
 Price has been reasonable fair to opinion in 39% has choosing neutral.
 Environmental degradation has over come to has choosing agree.
 QPDS are satisfactory than other beverages in 44% are agree.
 The promotional efforts of coca-cola has45% agree.
 The operating procedure and systems satisfactory in 48% strongly agree.

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Suggestion

 The company can focus on Non Moving products and may convert them to Fast Moving
product.
 Schemes may be improved in order to generate more sales.
 Company should improve brand advertisement in order to improve their sales
 Company should focus on improving their service to sustain the satisfaction level of the
retailers.

76
CHAPTER V1

CONCLUSION

The beverage industry is becoming highly competitive and in today’s context more

number of organizations are entering the market which is now perfectly competitive with price

decided by the consumers choice. The Coca-Cola Company can benefit only through the

schemes and offers provided for the customers along with creation of adequate supply of product

in time. This project study has helped us to understand the perception of retailers towards

Hindustan Coca-Cola Beverages Private Limited.

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