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A PROJECT REPORT ON
MARKETING STRATGIES OF TOP BRANDS OF COLD DRINKS
Submitted in partial fulfilment for the Award of degree of Master in Management Studies
CERTIFICATE
Certified that the dissertation title MARKETING STRATEGIES OF TOP BRANDS OF COLD DRINKS IN SAGAR is a bonafide work done Mr. HEMANI SONI under my guidance in partial fulfilment of Master in Management Studies programme . The views expressed in this dissertation is only of that of the researcher and the need not be those of this institute. This project work has been corrected by me.
PROJECT GUIDE
SWETA RAJPUT
DATE:: PLACE:
STUDENTS DECLARATION
I hereby declare that the Project Report conducted on MARKETING STRATEGIES OF TOP BRANDS OF COLD DRINKS Under the guidance of Ms. SHWETA RAJPUT
Is my original work and the same has not been submitted for the award of any other Degree/diploma/fellowship or other similar titles or prizes.
HEMANT SONI
ACKNOWLEDGEMENT
It is indeed a pleasure doing a project on MARKETING STRATEGIES OF TOP BRANDS OF COLD DRINKS. I am grateful to sir Parmesh goutam (hod) for providing me this opportunity.
I owe my indebtedness to My Project Guide Ms. Shweta rajput, for her keen interest, encouragement and constructive support and under whose able guidance I have completed out my project. She not only helped me in my project but also gave me an overall exposure to other issues related to retailing and answered all my queries calmly and patiently. I take the pleasure to express thanks to all my colleagues for many useful discussions and cooperation during the course of the project work.
TABAL OF CONTENTS
Executive summary
CHAPTER 1- INTRODUCTION CHAPTER 2- PROFILES OF THE ORGANIZATION CHAPTER 3- MARKETING STRATEGY CHAPTER 4- STUDY OF SELECTED RESEARCH PROBLEM
TOPIC OF RESEARCH PROBLEM STATEMENT OF RESEARCH OBJECTIVES RESEARCH DESIGN AND METHODOLOGY
Problem identification Scope of study Objective of study Research design Sampling plan Method of data collection Sources of data collection Limitations
EXECUTIVE SUMMARY
From this project titled " MARKETING STRATEGIES OF TOP BRANDS OF COLD DRINKS " in colds drinks industry, I have learned a lot about real practical work being done in the market I have also watched & learned the practical applicability of the various things that we have studied theoretically. I observed on the basis of survey in SAGAR city that Coca-Cola lay emphasis on merchandising in order to become the No.1 brand in soft drink industry the report was finds out the availability of different flavor and packs. Cola-Cola adopt a good customer relationship management, it is focus on the, segment of the product because each segment is affected by different sets of factor which hamper or enhance sales. Each segment had its own Pros & Cons. So we have to understand the various segment of soft drink industry that which flavor is existing more in the market, Such as Thums-up strong brand of coke which is more popular in young generation. I also observe about fate dealer, sub dealer, monopoly counter & its marketing strategy. Such as fate dealer is influence wrong direction to the market. They are supply product at high margin with low scheme. The company is making all out efforts to quench the thrist of millions of people around the globe but thirst of the company to capture the globe should never be quench.
A feeling of being satisfied should never be allowed to creep into the management as well as the rank and the profile of the company. SAGAR market being a gateway to the M.P. The efforts to capture the market completely should be the soul aim of management particularly in the light of the fact that a major bottling plant is situated in the area.
CHAPTER 1
INTRODUCTION
distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs.
INDUSTRY PROFILE
ORIGIN AND DEVELOPMENT OF THE INDUSTRY
Soft drink industry scenario the world over is almost the same with two major players i.e. Pepsi Co. and Coca-Cola having the major thank in the pie. The other major player in the industry is Cadbury-Schweppes and some local player in individual countries. The major components of the industry consist of the concentrate manufactures, bottles and the sales and distribution network of the companies the rule and responsibilities of each of them are different. The major activity taken up by the concentrate manufactures relates to the production of the basic product which is battled by the battling plants mostly independents and subsequently sold through the established distribution set ups of the respective companies. Incidentally a lions share of the total sales of the product of most of the companies is through fountain a sale which sums to be the most popular outlet in the western countries. Through in India fountain sales from a very insignificant part of the sales revenue. During the initial stag both soft drink majors used a network of independent bottlers to bottle and market their products. Independents bottling arose primarily because it was not possible to create an effective organization for operating a vertically integrated company with hundreds of geographically separated manufacturing unit and local delivery operations given the limited transportation and communication system of the time and the lack of sophisticated financial and management controls.
Although Coca-Cola and Pepsi Co. are premier marketing companies the fundamental competitive advantage that allowed that to compete so effectively lies in their ability to operate through a very cumbersome distribution system. In India after the exit of coke in 1977 Parley and pure drinks controlled the Indian Soft Drinks market. By the end of 1970 Campa-Cola was practically alone in Cola market Parleys introduced Thums up in the beginning of 1980s. By the end of 80s Parley with Limca, gold spot and Thums up emerged as clear winner with around 60% market share. In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This proposal as rejected on the grounds that the import of concentrate could not be agrees and the use of foreign brand name was not allowed. In year 1988 Pepsi again floated a project this time in collaboration with Punjab agro Corporation (PIAC) and Voltas India Limited and succeeded. Finally in June 1990 Pepsi was launched in India under the brand name of Lehar Pepsi. The most strategic step taken by Coca Cola was the purchase of Parley brands. With this coke instantly had the ownership of countries tap soft drinks brands as well as got access to Parleys extensive 54 plants bottling as well as a pre set distribution net work. This purchase gave coke an over might lead occur rival Pepsi which had came almost 5 year earlier.
the Consumer Price Index (CPI) grew at an average rate of 5.9%, compared with soft drink price growth 3.8%. Consumer demand appeared to be sensitive to price increases. The cola segment of the soft drink industry held the dominant (68%) share of the market in 1992, followed by lemon/lime with 12%, pepper flavor 7%, orange 3%, root beer 2%, and others 8%. Coke and Pepsi had a combined 73% of the soft drink market. Pepsi and Coca-Cola have more than 200 different products globally in 2000.
The basic product of soft drink companies cola. Today, cola is the most consumed beverage, still in the world. Even as lifestyles change all over the world, there is one beverage that remains the essential element for all people water. Soft Drink Companies are also focusing on their portfolio of replenishment beverages to meet differing local tastes for water and to provide sports drinks that quench the thirst of people with active lifestyles.
Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:
1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-todrink beverages they want to drink through out the day. 4. We will be the best marketers in the world.
5. We will think and act locally. 6. We will lead as a model corporate citizen.
The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our longterm cash flows, and create economic value added by improving economic profit.
The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customers business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market.
There are nearly 6 million people in the world who are potential consumers of our companys product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.
May 1886. The beverage was initially a coca wine and was called Pembertons French Wine Coca. After Atlanta and Fulton County passed Prohibition legislation, Pemberton made a carbonated, non-alcoholic version of French Wine Cola and called it Coca-Cola. Coca leaves from South America were added as a stimulant to the beverage along .with kola nuts which were added to give flavor to the drink. Due to them the name Coca-Cola was given to the beverage. Asa Candler, who was also a pharmacist of Atlanta, bought the formula for CocaCola in 1887 from John Pemberton for $2,300. Asa Candler marketed Coke
aggressively and was responsible of the dominance of the world soft drink market by Coke. During Pembertons time five ounces of coca leaf were added per gallon of the syrup which constituted a significant dose. Candler claimed in 1891 that he had altered the formula of Coca-Cola and it now contained only a tenth of amount of coca leaves. Coca-Cola also contained nine milligrams of cocaine per glass till 1904, when they started using spent leaves instead of fresh leaves.
racing, connecting the brand with one of the world's fastest growing and most popular spectator sports. New beverages joined the Company's line-up, including Powerade sports drink, Qoo children's fruit drink and Dasani bottled water. The Company's family of brands further expanded through acquisitions, including Limca, Maaza and Thums Up in India, Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury Schweppes' beverage brands in more than 120 countries around the world. By 1997, the Company already sold 1 billion servings of its products every day, yet knew that opportunity for growth was still around every corner. In 1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now well into its second century, the Company's goal is to provide magic every time someone drinks one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you can still find Coca-Cola. From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to the worlds most ubiquitous brand, with more than 1.4 billion beverage servings sold each day. When people choose to reach for one of The Coca-Cola Company brands, the Company wants that choice to be exciting and satisfying, every single time.
Coca-Cola Co slightly increased its lead over rival Pepsi-Cola Co in 2002, thanks to the successful launch of Vanilla Coke and the growth of Diet Coke, according to US soft drink industry rankings.
Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 per cent, according to beverage digest-/Maxwell, a New York-based industry newsletter and data service said. The company captured a larger share of the market even though its coke classic brand fell 0.6 percentage points in market share. Atlanta-based Coca-Cola dominates 44.3 per cent of the US soft drink market, but saw its market share drop between 1999 and 2001. With the latest gains, its only 0.2 percentage points away from where it stood in 1998 at 44.5.
PRODUCTS OF COCA-COLA
Coca-Cola serves in India some of the most recalled brands across the world,
Which include names such as Coca-Cola, Thumps up, Sprite, Fanta, along with
The acquisition of Thums Up brought some of the leading national soft drinks like
Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to
The Company ranking up "firsts" in the introduction of Canned and PET soft
drinks, vending machines and backpack dispensers for crowds of cricket supporters.
COCA COLA
SLOGAN: THANDA MATLAB COCA- COLA JO CHAHE HO JAYE COCA-COLA ENJOY SAR UTHA KE PIYO The world`s famous drink, the world 1s most valuable brand. he most recognizable word across the world after OK .Coca Cola has truly remarkable heritage. Developed in a brass pot in 1886, Coca-Cola is the most recognized and admired trademark around the globe. Not to mention the best selling soft drink in the world.
In India .Coca Cola was the leading soft-drink till 1977 when government policies necessitated its departure.Coca Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation.
THUMS-UP
SLOGAN: I WANT MY THUNDER"
Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993.Thums Up is a leading carbonated soft drink and most trusted brand in India. 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.Coca Cola has also launched several contests for the promotion of Thums up like Hai Dum and Ninja Jeeto Contest to attract the Youth. Coca Cola spent $ 3.5 million to beef up advertising and distribution for Thums Up. By 2002, it had become India`s No.1 cola drink India.
MAAZA
SLOGAN: "Taaza Mango, Maaza Mango" "Botal mein Aam, Maaza hain Naam".
Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the fruit drink category. It is available in SKUs of 200ml RGB, 250ml RGB, 125ml Tetrapak and 200ml Tetrapak
SPRITE
SLOGAN: "SPRITE BUJHAYA ONLY PYAAS, BAKI ALL BAKWAAS"
In India, Sprite was launched in year 1999.Sprite is perceived as a youth icon. With a strong appeal to the youth, Sprite has stood for a straightforward and honest attitude. Its clear crisp refreshing taste encourages the today's youth to trust their instincts, influences them to be true to who they are and to obey their thirst. Sprite is available around the country in 200ml, 300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr and 330ml cans.
Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood for straight forward and honest attitude. Its clear crisp refreshing taste encourages the todays youth to trust their instincts, influences them to be true to who they are and to obey their thirst.
FANTA
SLOGAN: KUCH BH1 HO SAKTA HAI MASTI KA APNA TASTE
Internationally,
Fanta
- The
'orange'
drink of
The
Coca-Cola
Company
is seen as one of the favorite drinks since 1940's. 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. This positive imagery is associated with happy, cheerful and special times with friends. Over the years Fanta has occupied a strong market place and is identified as The Fun Catalyst.
Fanta advertising over a time has the biggest association with fun and friends that have reflected through past TV commercials like Masti ka Apna Taste,Bajao Masti.
LIMCA
SLOGAN: -
Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country.
The success formula The sharp fizz and lemoni bite combined with the single-minded
positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes, refreshes and transforms.
The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country.
SUNFILL
Sunfill powder drink has been developed locally based on the Indian consumer preferences. We have kept in mind the Indian palate ( Taste / Sweetness /Sourness /Orange flavour ) .Sunfill is also present in other countries, either in the form of a fruit n juice based drink, or in the powdered concentrate form in countries like Indonesia, Sri lanka and Bangladesh. It has been developed using the Coca Cola Company`s expertise in the beverage business.
Keeping in mind the affordability factor and the competition, Sunfill is available in three variants-Sunfill Regular, Sunfill Anand and Sunfill Tarang.
KINLEY
SLOGAN: -
Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with reverse-osmosis along with the latest technology to ensure the purity.
MARKETING STRATEGIES
Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it.
PRICE STRATEGY
Trade Promotion
Coca Cola Company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And thats why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. They do agreements with a shop keepers and stores to exclusive sale in that store. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.
PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.
Sale Promotion
Company also do sponsorships with different college and schools cafes and sponsors their sports events and other extra curriculum activities for getting market share.
UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children.
Direct Selling
In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.
Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.
ADVERTISEMENT STRATEGY
Coca Cola Company use different mediums Print media Pos material TVs commercial Billboards and holdings
Print Media
They often use print media for advertisement. They have a separate department for print media.
POS Material
Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas.
TV Commercials
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels.
PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. Three of its brands--Pepsi-Cola, Mountain Dew, and Diet Pepsi&mdashe among the top ten soft drinks in the U.S. market. The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40 percent market share and an even more staggering 56 percent share of the U.S. market. In the United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos, Ruffles, Fritos, and Chee-tos. Frito-Lay generates more than 60 percent of PepsiCo's net sales and more than two-thirds of the parent company's operating profits. The company's third division, Tropicana Products, Inc., is the world leader in juice sales and holds a dominant 41 percent of the U.S. chilled orange juice market. On a worldwide basis, PepsiCo's product portfolio includes 16 brands that generate more than $500 million in sales each year, ten of which generate more than $1 billion annually. Overall, PepsiCo garners about 35 percent of its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160 countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As 2001 began, PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap'n Crunch, Life, and other ready-to-eat cereals.
When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic response convinced him that he had created a commercially viable product. For 20 years, 'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a dilemma; the crucial decision he made turned out to be the wrong one and he was forced to sell. But his successors fared no better and it was not until the end of the 1930s that PepsiCola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level was almost entirely the result of its management style and the phenomenal success of its television advertising.
Doc Bradham, like countless other entrepreneurs across the United States, was trying to create a cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every state of the union. On August 28, 1898, at his pharmacy in New Bern, North Carolina, Bradham gave the name Pepsi-Cola to his most popular flavored soda. Formerly known as Brad's Drink, the new cola beverage was a syrup of sugar, vanilla, oils, cola nuts, and other flavorings diluted in carbonated water. The enterprising pharmacist followed Coca-Cola's method of selling the concentrate to soda fountains; he mixed the syrup in his drugstore, then shipped it in barrels to the contracted fountain operators who added the soda water. He also bottled and sold the drink himself. In 1902 Doc Bradham closed his drugstore to devote his attention to the thriving new business. The next year, he patented the Pepsi-Cola trademark, ran his first advertisement in a local paper, and moved the bottling and syrup-making operations to a custom-built factory. Almost 20,000 gallons of Pepsi-Cola syrup were produced in 1904.
Pepsi has been bringing fun and refreshment to consumers for over 100 years. From its humble beginnings over a century ago, Pepsi-Cola has grown to become one of the bestknown, most-loved products throughout the world. Today, the company continues to innovate, creating new products, new flavors and new packages in varying shapes and sizes to meet the growing demand for convenience and healthier choices. The various product of Pepsi available in India are: Pepsi: Pepsi is the most saleable product of PepsiCo. It is popular in the younger generation all around the world. Diet Pepsi:With its light, crisp taste, Diet Pepsi gives you all the refreshment you need with zero sugar, zero calories and zero carbs, Light, Crisp, refreshing. Mirinda: Mirinda was originally produced in Spain. Mirinda is a brand of soft drink available in fruit varieties including orange, grapefruit, and apple, strawberry, pineapple, banana, and passionfruit and grape flavors. The orange flavor of Mirinda represents the majority of Mirinda sales worldwide. 7up: 7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the brand are held by Dr Pepper Snapple Group in the United States, and PepsiCo (or its licensees) in the rest of the world. Mountain Dew: Mountain Dew (also known as Mtn Dew as of late 2008) is a soft drink distributed and manufactured by PepsiCo. Mountain Dew (and its energy drink counterpart known as AMP) often incurs the disapproval of health experts due to its relatively high caffeine content for a soft drink or energy drink. Pepsi Blue: Pepsi Blue is a berry-flavored soft drink produced by PepsiCo. It was launched in India near the cricket world cup to associated the Pepsi with the Indian people as Blue is official colour of Indian cricket team. The flavor of Pepsi Blue was thought by drinkers to be similar to cotton candy with a berry-like aftertaste (it resembled that of blueberries or raspberries). Slice: Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in 1984. Varieties of Slice have included Apple, Fruit Punch, Grape, Passion fruit, Peach, Mandarin Orange, Pineapple, Strawberry, Cherry Cola, "Red", Cherry-Lime, and Dr Slice.
The study also keeps in mind various theories like DAGMAR & AIDS and their relevance in todays changing scenario.
The mode of the data collection would include both primary and secondary. The impact of sale promotion schemes would measure on: Their visibility. Recall value of a post schemes. Acceptability of the current scheme by the customers and sales force.
For this purpose both primary and secondary data would be collected. For clarification certain annexure of ads and sales promotion schemes are added in the end. The project work started with the collection of secondary data from various sources such as newspaper, magazines, journals and web sites. Along side two questionnaires were also prepared one aimed at consumers and the other aimed at retailers together primary data, regarding the influence and effect of Advertising and sales promotion schemes on the sales of soft drinks (Carbonated Soft drinks).
This research includes: Problem identification Scope of study Objective of study Research design Sampling plan Method of data collection Sources of data collection Limitations
1.
Problem Identification:
Marketer should be aware of the perception of customer about his product so that he
can gain maximum out of it. He should be aware of who are decision maker as well as ultimate buyer of product. 2.
Scope of study:
The scope of this study is kept within the control of individual researcher.
3.
Research Design:
The method adopted for research is Experience Survey i.e. survey of people who
have practical experience of soft drinks in Sagar, in such a research design the decision regarding what, where, whom, how much, by what means are concerned. It is the blue print for the research undertaken.
5.
Sampling Plan:
It includes sample unit, sample size, sample procedure.
Sample Unit: Sample unit is target population of SAGAR. Sample size: Research is done on 200 respondents of SAGAR. 6.
7.
8.
Limitations of Study:
Resources for collection of data are less. Time period for data collection is short Difficult to get response from customer. Experience in field of research is difficult job.
ANALYSIS OF DATA
Sales
39 PepsiCo Coca Cola
61
When asked about particular brands consumers responded the two colas namely Pepsi and coke as their favorites. Out of which Coca Cola was leading with 61% while Pepsi came second at 39%, It was also observed that cola segment was preferred by more than 70% of the total consumers interviewed.
Price 21%
Preference 19%
When asked to the consumers responded availability of a particular brand of soft drink of the most important in their purchase decision. Through advertising and sales promotion schemes were also very important while making their final purchase decision as it is an impulse purchase, consumers often related their purchase with the recall of an ad which their viewed on television. Apart from easy availability and promotional schemes price was another major driving factor in the purchase of a soft drink for consumers (Pet bottles prices vary).
When you talk of soft drink advertising which all brands come to your mind (please specify in order of recall)?
Others 6%
Coke 29%
When the above question was asked to the consumers they could easily recall Pepsi and Coke ads almost equally. Though Pepsi had a very minor edge. This question also shows Pepsis aggressive nature in advertising, which is its trademark the world over. Pepsi has always been known as an aggressive advertiser and this is also true in Indian market. Thums up was a distant third because of its continuous attacks on Pepsi.
Do you think the advertising done by the companies affects the sales of their respective soft drinks?
No 29%
Yes 71%
As its is clear from the above graph that advertising as a major impact on the sales of soft drinks most of the consumers almost 71% thought advertising has direct effect on the sales of the soft drinks. When consumers were asked about the effect of ads on sales most of them responded in favor. They said that ads were the most important factor in driving the sales of any brand. Especially with the younger generation, it often drives them towards a particular brand of soft drink due to its advertisement.
Which from of advertising and sales promotion strategies do you think is most effective for soft drink industry?
45 40 35 30 25 20 15 10 5 0 Sales Promotion Schemes Television Advertising Outdoor Advertising 8 13 9 29 41
Consumers think that television advertising has a major impact on the sales of soft drinks. As television reaches maximum urban homes, which are the major market of the soft drinks, they have a direct impact on the consumers behavior. Apart from that newspaper advertising is also important. Apart from these advertising media, sales promotion schemes from the next important strategy.
According to you which companys advertising are more creative and appealing?
57 60 50 40 30 20 10 0 PepsiCo Coca Cola 43
HTA, the advertising agency for Pepsi, has come up with many innovative ads in the past, creating a good impression in the mind of consumers. Most of the consumers interviewed responded that they like Pepsi ads more than that of Coke. Recently Coke has also come up with few ads, which are specifically by the consumers.
ANALYSIS OF RETAILERS
Type of business
Eatery 22%
Others 6%
To conduct the research a number of Retail Outlets were visited these retail outlet included provisions stores, eateries, sweets shops, tea stalls, Dhabas etc. Out of these it was found that provision stores of the local market where the major sellers of the soft drinks and consumers usually preferred to buy soft drinks from their local grocery store.
Which segment of soft drink consumer generally asked for? (Rank them on scale 1, 2, 3)1 is max. 3 is min.
60 51 50 40 30 20 10 0 Cola Orange Cloudy Lemon Clear Lemon Others 27 14 4 4
As it is an apparent from the above graph when asked about which segment the consumers generally asked for the retailers respondent that Cola by itself was the largest selling soft drink amounting to 61% of total soft drink sales. Orange came a distant second at 17% followed by cloudy lemon, which constituted another 14%.
Why do think that a consumer ask for a particular brand of soft drink?
Price 21%
Availbility 23%
The consumer preferences are very fragile and not firm. Consumers preference usually changes with the various schemes and the advertising. Which has major impact on their purchase decision? Price is another critical factor on which the consumer purchase decision is based. It is often found that the consumers change their preference in accordance with various price discounts offered to them. Availability is another major aspect, which decides the actual purchase. A consumer may change his or her preference based in the fact that which brand is available chilled at that moment.
40 35 30
38
Though advertising and sales promotion act as a major tool to attract customers for the purchase of the particular soft drink, but it is actually the availability that is by far the most important factors, which drive the sale. Apart from availability the price factor is again cited as an important factor in the actual sale of the soft drinks. Apart from these various schemes and sales promotion activities under taken by the company also acts as sources of sale. The brand preference and loyalty is by far the least important factor driving the sale.
What are the attributes that influence you to decide which brand of soft drink to keep? (Rank them on scale of 1-4).
50 45 40 35 30 25 20 15 10 5 0 Company Support Consumer Pull Promotional Schemes Brand Name 12 18 27 43
The attributes that influence a retailer to keep a particular brand of soft drink are pro motional schemes brand name consumer pill and company support. Out of these factors promotional scheme again is the major factor that influences any retailer to keep the stock of particular brands. Apart from this consumer pull and brand name acts are the major influencers for the retailers to keep stork of a particular soft drinks. One more factor which affects the retailers to keep stock of particular soft drinks is the company support which is provided in from of visi coolers, banners, sign boards etc. through the kind of company support provided by the majors is almost the same.
Does the promotional scheme of the company have any effect on the sales of soft drinks brands?
No 29%
Yes 71%
As sighted in the above analysis, sale of any soft drink is very much affected by the promotional schemes provided by the company to the retailers. These schemes act as the push towards the sales for any soft drink brands.
Internal environment analysis (analysis of strength and weakness) It is one thing to discern attractive opportunities and another to be able to take advantage of these opportunities. Each business unit needs to evaluate its internal strength and weakness. As the research is conducted following strength and weakness of the Coke Company is found.
Strength
1. Good company image.
4. Brand 'Thums-Up' alone cover the big market. Adopted two types of distribution channels (Direct route and indirect route).
Weaknesses
1. Less personal contacts with retailers.
6. No proper maintenance of asset as like visi-coolers, dealer board, glow sign, etc.
Opportunity
Threats
2. Better facilities provided by the competitor to their distribution this might lead to switch over to slice distribution towards competitors.
Due to the high cost of soft drinks, a lot of times consumers prefer beverages like tea, coffee or other drinks like sharbat and squashes.
Per capita consumption in India is among lowest in the world at 5 bottles per annum compared to 80 bottles in Thailand and 800 bottles in USA.
Delhi market has highest per capita consumption in the country with 50 bottles per annum compared to 5 bottles for the country.
RETAILERS PERCEPTIONS
Retailers stated that the consumers are loyal to the particular segment of the soft drink i.e. cola, orange or lemon. But as far the loyalty for the brands in each segment is concerned, it is not very significant.
43% of the retailers surveyed told that in soft drinks advertising is the key component in driving sales. While 32% stated promotional schemes and 20% brand loyalty as the reason.
As consumers are not very brand loyal where the purchase of soft drinks is concerned, the retailer push becomes a critical issue. They usually sell the product in which they get the maximum benefit. For this, the companies try to offer them higher margins
SUGGESTIONS
Although it is very early to suggest any thing to such a internationally renounced company like Coca-Cola having in the mature stat e of marketing yet for the local market, client distributors & retailers, based on the interactions & feed backs from various outlets, segments of customers I would like to suggest as under:
Company should promote good and heart felt Slogans and Jingles.
Company should provide others small advertising items in the form of garlands, hangers recto the shopkeepers as there are cheap and Q good source of advertising.
Company should sponsor important event like World cup, Asian & other tournament, any event related to film awards and programmers of local importance.
Company, If possible should give schemes to the customers through newspapers having provision for discounts in purchasing its products.
Company should organizing campaigns & distributes caps, Key rings, glasses, serving tray, pussels on which company packages are branded.
Chilling equipments (like family freeze, vizzi or Electric bottle cooler) should be provided to the outlets
If there is any default found in the chilling equipment provided by the company should be repaired quickly when so required.
Company should give discount with every crate as is being done by Pepsi.
There should be surprise check by the company to endure whether benefits of schemes provided by the company reach outlets or not and take corrective measures in case of default.
Company should arrange seminars and meetings with dealers on an ongoing basis on monthly interval.
A special shopkeepers care cell should be formed to listen the shopkeepers grievance on the lines of customer care cell.
. Some free gifts should also be given on established Brands to stimulance the retailer.
Company should elaborate public announcement on important days like Health day, Anti drug day world aids day etc.
Company should tap colleges and school canteens. They should be given extra discounts as these outlets give potential long run customers to the company.
Company should provide Tables, Chairs wall clocks, stands, openers to the retailers as f or them type of free gifts are significant and they promote those company's products who provide such items to them
ANNEXURES
1) Which Company brands of soft drink do you prefer? a) Coca Cola 2) Why do you prefer it? a) Adv. & promotion schemes c) Price b) Preference d) Easy Availability b) Pepsi
3) Which form of advertising and sales promotion strategies do you think is most effective for soft drink industry? a) Television Advertising c) Outdoor Advertising b) Newspaper Advertising d) Sales promotion schemes
4) According to you which companys advertising are more Creative and appealing? a) PepsiCo b) Coca-Cola
6) When you talk of soft drink advertising which all brands come to your mind? (Please specify in order of recall) ---------------------------------------------------------------------------------------------------------------------------------------------------------------
2) Which segment of soft drink consumer generally asked for? a) Cola c) Clear lemon e) Others 3) Why do think that a consumer ask for a particular brand of soft drink? a) Adv. & Promotional Activities c) Easy Availability 4) Major sale of soft drink is due to? a) Availability c) Brand Name b) Price d) Promotion Schemes b) Brand Preference d) Price b) Orange e) Cloudy Lemon
5) What are the attributes that influence you to decide which brand of soft drink to keep? (Rank them on scale of 1-4). a) Company Support c) Brand Name b) Consumer Pull d) Promotion Schemes
6) Does the promotional scheme of the company have any effect on the sales of soft drinks brands? a) Yes b) No
BIBLIOGRAPHY
REFERENCES
BOOKS:Kottler Philip Chunawall S.A. Kothari C.R. Sherlerkar S.A. Schiff man Leon. G. : : : : : Marketing Management Essentials of Marketing Research Research Methodology Marketing Management Leslie Lazar Kaunk
Magazines
Business world Coca-cola company booklet Pepsi company Booklet
Websites
www.coca-cola.com www.pepsi.com www.pepsico.com www.google.com
Newspaper
Times of India Economic Times