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1.
BRANDING :
What is a brand ? A brand is name, term, sign, symbol or design or a combination of them which is intended to
identify the goods or services of one seller or group of sellers and to differentiate them from those of
competitors' A Trade mark is "a brand or a part of brand that is given legal protection because it is capable of
exclusive appropriation." Manufacturers can use their own brands (known as Manufacturers' brands) or brands
of their distributors (Distributors' brands). Why branding? Manufacturers/ distributors use brand names for a
variety of reasons from simple identification purposes to having legal protection for unique features of the
products from imitations and help consumers recognize certain quality parameters. In some cases, brands are
just used to endow the product with unique story and character which itself can be a basis for product
differentiation. Special importance of brands for soft drink products While brands can represent all types of
goods or entities, they have special importance for products. Brand equities are stronger in soft drink products
as the
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consumer is reluctant to try unknown brands/ unbranded products for the following reasons These
products individually account for a small part of household spending. Most of these products are for personal
use. In many cases, it is difficult to differentiate a product on technical or functional grounds and therefore the
consumer is reluctant to switch to an unknown brand. Successful brands generate strong cash flows, which
enable the owner of the brand to reinvest a part of it in the form of aggressive advertisements/ promotions.
This reinforces the perceived superiority of a brand. How a brand is created? Soft drink companies spends
enormous sums on building a brand equity by way of advertisements/publicity free samples -low entry price
promotions (schemes for dealers, consumers etc) Advertisement and promotion can induce trials but for
sustained loyalty, the manufacturer has to offer superior quality and value for money. Most successful brands
are founded on a chance discovery of a new product/ process or assiduous research and development work.
Major players invest in R&D on their existing brands and improve the product quality continuously to
maintain their edge over competitors.
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Branding strategies : a) Individual brands Vs Umbrella brandsIndividual brand has its own identity and the
corporate or common name is not used to promote its equity. In case umbrella brand, there is a generic brand
with association of some values. For instance, Hindustan Lever follows individual branding strategy and has
several brands in the same category such as Lux, Liril, Rexona soaps etc. Competitor Nirma has mainly
followed the umbrella branding strategy such as Nirma Bath, Nirma Beauty, Nirma Super, Nirma Shikakai
soap etc. Only recently, the company for the first time diverted from its strategy of umbrella branding with the
launch ofNima. Advantages of Individual branding strategy are Some of the products which flop in the
market do not have negative spill over impact on other brands. For example, Nirma is associated with popular
end of products, which becomes a major deterrent for its expansion in the premium segment. Consumers
looking for a change are offered distinctly new brands by the same manufacturer. But individual branding
requires expensive advertisements and brand building exercises. Also, each new brand does not benefit from
the positive perceptions of earlier brands. In umbrella branding, manufacturers have advantage of
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Establishing a new product quickly with association of quality/ benefits of the mother brand, (a classic case in
Indian context has been Godrej)

No need for name research, expensive advertisement for creating brand names, recognition and preference.
b)
Brand extensionsBrand extensions are used for a group of products such as Clinic Plus Shampoo,
Clinic All Clear, Clinic Plus hair oil or Close Up Renew, dose Up Oxyfresh, Close Up Sensation, etc. The
brand has some unique USP and there are cosmetic/ functional variations in the extensions. The strategy is to
build upon initial success of a brand entry by creating flanker items and minor variants of the basic brand.
Brand extensions may be used within product categories (In some products like shampoos, there can be natural
variants such as shampoo for normal hair, dry hair or for specific problem solving like anti-dandruff). It may
also be used for different product segments (e.g. Suns ilk brand being extended to hair oil) c) Multi
brandsMarketer introduces brands mostly in large markets, which compete with each other in almost the same
segment. In multi branding, there is cannibalization but overall result is greater market share. Net incremental
market share is enough to justify the investment in the new brand. For instance Hindustan Lever has several
brands (Lux, Breeze, Hamam, Rexona, etc) in the same category i.e. toilet soaps.
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Accounting for brand expenses :
Expenses incurred by way of advertisements, free samples, promotions etc are treated as revenue expenditure
by accountants, as they do not create any tangible assets. The intangible assets created in the form of a brand
pays back in the form of repeat buying and pricing power over a long period of time. An established brand is a
precious asset and when sold, fetches a price several times the value of tangible assets required to manufacture
the product. There is no generally accepted methodology for valuing and accounting for brands. Also, all
methods recommended for valuing brands suffer from lack of objectivity and consistency. There is
considerable risk as expenses incurred on a unsuccessful brand has to be written off almost entirely. But the
same are paid back several times in case of successful brands. In case of FMCG companies, assets are
considerably understated as they do not include value of brands. Inclusion of brands in assets will dilute return
on net worth reduce gearing ratio.
It can be argued that high return on net worth shown by established companies is overstated as assets (i.e.
Brands) are understated. Similarly, in case of companies in investment phase, making extensive investment in
new brands, would exhibit depressed return on net worth as investment in brands is being written off, pulling
down the profits. Some companies defer writing off a part of the expenditure for brand building. The
expenditure not written off in the year is treated as deferred revenue expenditure.
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2.
VALUATION OF BRANDS :
Value of a brand is represented by the incremental cash flow resulting from a
product with a brand versus a product without a brand name or with weaker brand name. Brand valuation is a
complex process and involves a lot of subjectivity. There are no widely accepted techniques of brand
valuation. There are several considerations which cannot be standardized or quantified such as To pre-
empt competition from taking over a brand Synergy with the company acquiring existing brands/ businesses
Strategic entry into a new product category Prevent damage to existing brands. Many a times stiff competition
results in price cutting, aggressive promotions, lower margins for all the competing brands. Confidence in the
acquirer of the brand to rejuvenate a languishing brand.
Value of an acquired brand : In case of an acquired brand, price paid for the brand over and above the value of
tangible assets, represents value of the brand. For accounting purposes consideration paid for the brand is
typically broken up as follows: Goodwill Trademark and patents
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Technology and know-how Non compete agreement
Some of the popular methods for valuation of brands are discussed below Bert technique (Intra-brand Pic)
values brands based on following factors. It gives scores on each factor and values the brand as multiple of
sales/ earnings based on the aggregate score. USP's of the brand Stability of the brand Markets namely the
industry in which the brand is in use. International of the brand commanding a higher weightage than a local
brand. The long term trends of the brands Brands receiving consistent investment are more valuable. Legal
protection commanded by brands through registration and trade mark laws. Quality of support received by the
brands. Cost basis - The valuation is done by aggregating all costs incurred on a brand from the conception
stage. These costs include market survey, research & development, launch and subsequent advertising
expenditures. These costs are adjusted for inflation and present values are calculated. Then adjustments are
made to provide for discount in case of a declining trend in the product life cycle or premium in case of
ascending trend in market share and product life cycle.
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Market value - Valuation at market price (the best bidder quote) can be at divergence from the fundamental
value of the brand. For instance, a large company may pay an abnormally high price to protect its major brand
or remove a nuisance from the market or derive synergies in its existing business. Such valuations are
subjective. Earnings model - In this method, valuation is done by identifying, separating and quantifying
earnings that can be attributed to the brand and capitalizing these earnings at a suitable discounting rate. The
multiple would depend on several factors such as category growth prospect, emerging competition and brand's
relative position, edge in terms of technology, strength of loyalty to the brand etc. 3. DISTRIBUTION :
Marketing or Distribution channel refers to the set of marketing intermediaries which manufacturer's link
together to reach their products to the ultimate consumers. Depending on the product, nature of market and
manufacturers' resources/strategy, there can be one or more links between the manufacturer and consumer.
Manufacturer Retailers Manufacturer - Wholesalers Retailers Manufacturer - Stockists - Wholesalers -
Retailers.
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Why use distribution channelsThere are several benefits for a manufacturer particularly in case of consumer
goods to rely on these marketing intermediaries rather than develop one's own distribution network.
Efficiency in performing the basic marketing task by these intermediaries who through their experience,
specialization, knowledge of local conditions, contacts and scale, offer services. Which manufacturers can
scarcely do on their own. Cost advantage most of these intermediaries in India are family owned outfits. Their
cost of operations and overheads are substantially lower. Focus: Manufacturers can concentrate on their core
activity and optimize return on assets. Retailing : In India, there are over 5 million retail outlets dispersed all
over the country. The retailing industry provides employment to over 18mn people. 1 out of every 25 families
in India is engaged in the business of retailing. Ownership and management are predominantly family
controlled. However in sharp contrast to developed countries, unit average size of a retail outlet in India is very
small. Organized retailing, however, has been a recent phenomenon and is relatively undeveloped. There are
no large super market chains/ shopping malls. Consumers are unwilling to pay a premium for convenience
shopping as their counterparts in the western 49
countries do. While small chain stores called Apna Bazaars and Sahakan Bhandaars, which offer products at
reasonable prices, have been fairly popular, Department Stores and Food Stores are slowly gaining popularity.
A large number of corporates have recently ventured into retailing. The retail outlet in India can be broadly
categorized as follows: Grocery stores General purpose stores Food stores Pan bidi shops Chemist/ drug stores
Cold chains The relative share of grocers dropped from over 50% in the early 90's to 35% in the late 90's.
Chemist outlets on the other hand, have been expanding their product range to include high margin FMCG
products from shampoos to ketchup. Pan-wallas are also emerging as full fledged consumer product outlets.
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Table : Growth in retail outlets Year 1978 1984 1990 1996 Urban 0.58 0.75 0.94 1.80 Rural 1.76 2.02 2.42
3.33 Total 2.35 2.77 3.36 5.13
Composition of urban outlets Grocers Cosmetic stores Chemist Food Stores General Stores Pan stores Others
34.7% 4.0% 6.3% 6.6% 14.4% 17.0% 17.0%
Composition of rural outlets Grocers Cosmetic stores Chemist Others 55.6% 13.5% 3.3% 27.6%
04.
MARKETING :
Direct marketing :
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In direct marketing manufacturers reach the consumers directly. Direct marketing can be undertaken in several
ways such as mail order, own retail outlets, mobile vans etc. A new innovative approach to direct marketing
viz multilevel marketing is becoming increasingly popular. Also gaining ground slowly is E-tailing i.e. selling
products through the internet. Multilevel marketing model : Multi level marketing refers to direct marketing
through an ever-increasing number of direct distributors. Independent distributors sell products directly to the
consumers and appoint new distributors and train them. The distributor earns commission at two levels; one is
his/ her own commission and two a proportion of commission earned by other distributors appointed by him/
her. None of these distributors are employees of the company. Distributors are not allowed to sell these
products to retailers. The company saves about 25% of realizations by eliminating retail channel, which is
shared with distributors. The company insists that the distributors should take prior appointment with the
consumer. Personal interaction is not only convenient but adds value as customer get valuable advice on the
product and how to use it. This helps in creating awareness and removing misconceptions like cosmetics are
harmful for the skin.
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Direct marketing (multi level approach) in persona care products is extremely popular abroad. In Brazil, about
60% of personal care products are sold through direct marketing. In India, direct marketing has been slowly
growing. Word of mouth has a strong impact on purchase decision of a consumer, specially in personal care
and cosmetic products. Direct marketing has mainly been undertaken by the new MNC entrants (notably
Oriflame, Avon). Hindustan Lever has also recently launched a new personal product brand Aviance which is
sold directly to consumers exclusively by trained beauty specialists. Direct marketing has also been extensively
used in marketing of household appliances like Vacuum cleaners. However given the widely spread
geographical area in India, direct marketing cannot be easily used to build an extensive national reach and is
more likely to be used as a supplementary channel. 5. Market Research : Market research activities encompass
studies on: market characteristics measurement of market potential and size, market share analysis, competitive
products, new products acceptance/ product preference, sales (region wise, consumer wise etc) analysis, short/
long term sales forecasting, advertisement effectiveness post-shipment data (actual shipment by
manufacturers),
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-
retail stores audit (actual sales at sample outlets) trade feedback and distribution, brand recall, point of sale
material etc. It requires skilled people for data collection as well as analysis. Several large
consumer companies have in-house MR department. Most others retain specialized and professional MR
agencies. The significance of market research has increased considerably in the recent times as: Size of
operations of major players has increased to national and international markets. Marketing executives are
physically away from the market and hence the need for flow of information. In the environment of increasing
competition and multiple products competing for consumers' preference information about the market has
tremendous utility. Information is required for segmenting the market and appropriate pricing and positioning
of the products.
Market research approach :
Typically, a market research activity involves the following 5 steps,
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Problems definition This forms the basis of research and failure to identify the problem precisely will result in
finding a correct solution for a wrong problem. Research design: The next step is to set out objectives of
research clearly, determined data collection methods to finalize research instruments and sampling plan. Field
work: After finalization of research design, the actual data collection begins. It can be done by the agency on
its own or through subcontracting to third parties. Data is collected by questionnaires/ direct interviews,
telephonic interviews, simple observation etc. Data analysis: The next step forms the heart of research activity.
It involves extracting meaningful information from the data collected and analyzing the information
statistically and also from business perspective. Statistical techniques include simple/ multiple linear
programming models, time series, exponential series, regression analysis, simulation, Marko chain process etc.
Report preparation: The final step is to prepare a report, present major findings in a manner amenable to
managerial decision taking. There may be some follow up and revalidation required.
Test marketing :
Test marketing refers to testing out product and marketing mix with a small number of well chosen consumers
which are representative of the target segment. Test
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marketing is frequently used by consumer companies, in contrast to industrial companies which prefer
feedback through informal channels. Test marketing improves knowledge of target consumers, potential sales
and is an effective tool to pre-test alternative marketing plan. In most products, it is important to check trial
rates as well as re-purchase rates. Consumer's panels : Consumer panels refer to a set of consumers with
different demographic characteristics (so as to be representative of target population) who agree to co-operate
in market research, typically for a consideration. Market research agencies and companies try to collect
information on buyer's characteristics by introducing a new product to the consumer panels. The firm estimates
trials as well as the repeat purchasing by this method. There are statistical models to forecast market shares,
demand, brand switching etc. 7. ADVERTISING AND PROMOTION : Advertising consists of non-personal
form of communications. The
communication is conducted through trade media under player sponsorships. Advertising aims at providing
information about the product arouse demand for the product and emphasize on superior features of the
advertised product over others. Players have to decide on overall advertisement budget, message and mode of
presentation, type of media, timing etc. They invariably do post audit of advertising efficacy. Promotions are
of two types viz. pull promotions where consumers are incentives and push promotion where dealers/ retailers
are incentives. There are several forms of
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promotion such as distributing free samples, discount coupons, gift offers for consumers and target based
incentives and display schemes etc for retailers. Marketers also sponsor charity programmes, sports etc to
promote corporate/ brand image. Consumer demographics : Get a feel of the Indian consumer markets. Data on
population, states, income levels, penetration, media reach and more PopulationMetropolitan cities States -
Rural and Urban Population distribution (Religion-wise) Population distribution- (Language wise) Dispersion
by population strata Population distribution age-wise Occupation-wise distribution Population projections
Demographic projections (Age-wise)
Indian StatesPopulation - Rural and Urban Number of villages Per capita and net domestic product Literacy
Media ReachPopulation - Rural and Urban Urban 1998 Rural 1998 State-wise- 1999 (Urban & Rural)
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Demographic Profile Socio-Economic class Education wise (Urban & Rural) Age Group (Urban & Rural)
Media Reach - Satellite Penetration (Urban + Rural) Media Reach - Satellite Penetration (By region) Media
Reach - Satellite Penetration (State wise)
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Penetration of Consumer ExpendablesPenetration rates - Rural & Urban Penetration rates Urban Penetration
rates - Rural
Key statisticsIndicators of economic growth Key statistics of Indian Economy Demographic profile of India
Snap shot of India I Private consumption expenditure on foodPFCE: Food, Beverages & Tobacco PFCE: Food
PFCE: Cereals & Bread PFCE: Milk & Milk products PFCE: Coffee, Tea & Cocoa PFCE: Beverages, Pan &
Intoxicants PFCE: Beverages PFCE: Tobacco and Its Products
DISTRIBUTION MANAGEMENT
Distribution management is a logistics control process that applies situational understanding from both the
operational and logistical common operating pictures in order to dynamically control and synchronize the flow
of materiel through the distribution pipelines, including retrograde and lateral distribution. The last part of the
definition - retrograde and lateral distribution - is critical to future success and is often overlooked in
distribution management schemes. Our ability to move materiel in any
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direction through the pipelines provides an economy of effort that actually becomes a force multiplier. In this
manner, distribution management becomes a key enabler of logistics transformation, by reducing materiel
requirements to only those that are needed and by leveraging stockage positioning to reduce the total cost of
sustainment. Distribution Management: - When you're operating multiple plants over a large geographical
area, knowing exactly what you have and where it's located can be a tremendous competitive advantage.
Frontier's Distribution Management components allow you to access real-time inventory and shipping
information across your enterprise, as well as historical audits that can help with planning for the future. With
Frontier, you'll always know your inventory requirements and availability for every product, at every plant.
You can instantly find transit status for parts and finished goods. Frontier helps you plan more efficient truck
loading and shipping routes. You'll also enjoy shipping and billing that is tightly integrated from the initial sale
through Accounts. A definition of dynamic control is also required before we go further. Dynamic control is
the distribution manager's ability to rapidly set and change priorities and modes of transportation in response to
the war fighter's requirements. If Quartermasters cannot dynamically control the delivery of supplies and
materiel, we remain at the mercy of the transportation system and will be forced into the comfort and expense
of a stockagebased supply system.
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DISTRIBUTION MANAGEMENT PRODUCT MODULES Advanced Forecasting Advanced Pricing
Advanced Stock Valuation Agreement Management Bulk Stock Valuation Enterprise Facility Planning
Inventory Management
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DAILY SHIPPING ACTIVITIES AT COCA-COLA BSR(Bonded storage area) 1. 2. 3. 4. 5. 6. 7. Daily report
Physical stock verification Full movement report RG 1 Leakage and Breakage Report Stock covered with
tarpaulin Shipping office house keeping EMPTY1. 2. 3. 4. 5. DPG1. 2. 3. Physical stock verification 2. DOD
& BOD Report Housekeeping of DPG Check for pending ERA Breakage report Physical stock verification
Breakage handing over to store House keeping of empty yard
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INDIA DIVISION The Head quarter of India is at Enkay Towers, Udyog Vihar,Gurgaon .Coca Cola became
3rd largest FMCG from zero in India in just 8 years. There are 40 producing units across the country. There are
5 regions in India viz., North, South, West, East & Andhra Pradesh. The company operates in two types of
Bottling operations viz., 1. COBO (Company Owned Bottling Operations) - In COBO, the Company owns the
unit and is a property of India. 2. FOBO (Franchisee owned Bottling Operations) - FOBO is operated by
Bottlers, who are given license by the Company to bottle its products on their behalf. THE NORTH REGION :
The headquarter of Northern Region is at JMD Towers, Regent Square, Gurgaon. It comprises of Delhi,
Western UP, Eastern UP, Jammu & Jaipur units. It has 9 production units viz, Delhi, Jaipur, Kanpur,
Ghaziabad, Dasna, Najibabad, Jammu, Delhi FOBOs & East-West UP FOBO. It is the largest region in India
with 1313 employees.
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PRODUCTS OF COMPANY It has brown colour with high content of C02 (Carbon di-oxide) which makes its
COLA flavour heavy. It is available in different volumes in market like : 1. 2. 3. 4. 5. 6. 200 ml glass bottle
300 ml glass bottle 500 ml pet bottle 600ml pet bottle 1 Liter glass bottle 2.25 Liter pet bottle. It has dark
brown color with very high content of CO2 which makes the Cola flavor is very strong. It is available in
different volumes in market like: 1. 2. 3. 4. 5. 6. 200 ml glass bottle 300 ml glass bottle 500 ml pet bottle
600ml pet bottle 1 Liter glass bottle 2.25 Liter pet bottle It comes in many flavors like orange, with light
content of CO2 that makes its make its flavor delicious. It is available in different volumes in market. 1. 200
ml glass bottle
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2. 3. 4. 5. 6.
300 ml glass bottle 500 ml pet bottle 600 ml pet bottle 1 Liter glass bottle 2.25 Liter pet bottle Limca has light
grey colour with light content of CO2 that makes its flavour tasty. It is available in market in following packs
of quantities:
1. 2. 3. 4. 5. 6.
200 ml glass bottle 300 ml glass bottle 500 ml pet bottle 600 ml pet bottle 1 Liter glass bottle 2.25 Liter pet
bottle It is colourless with packing in green coloured bottle. It has normal content of CO2. It has a nice flavour
available in market in following packing:
1. 2. 3. 4. 5. 6.
200 ml glass bottle 300 ml glass bottle 500 ml pet bottle 600 ml pet bottle 1 Liter glass bottle 2.25 Liter pet
bottle
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It is of yellow colour with decent taste of mango. It doesn't contain CO2. Its available packing in market are: 1.
2. 250 glass Bottle 200 ml Tetrapack It is a newly launched brand of Coca Cola It is actually a Minute Made
powder, which is very easy to prepare by mixing water in it. It is available in three flavours viz., mango, lemon
& orange and its packing in the market are: 1. 2. 25gm packet 200 gm packet
Soda- It is colourless & available in market in 300 ml glass bottle in the market. K -Water it is a mineral water
available in following volumes in the market: 1. 2. 3. 500 ml pet bottle 1 liter, pet little 2 liter, pet little
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DEPARTMENTATION IN Hindustan Coca Cola Beverages Pvt. Ltd. The Ghaziabad Unit is divided into
many departments for their smooth working. The Plant is basically COBO for 200 ml, 300 ml & 1 Liter
packing and rest of the products are sourcing from other its COBO & FOBO unit. All the departments and
their workings are briefly described as follows: FINANCE : Finance department performs the activities in
management of Accounts Receivables, Claims and expenses, Fixed Assets management & their depreciation,
Transportation, arrangement of raw material as through supply chain, computer networking management,
Taxation, etc. Above all these functions checking authority verifies all these activities and approves it for final
actions. HUMAN RESOURCE (HR) HR department works in Recruitment & selection, Training &
Development, Performance Appraisals, objective setting leading to management Incentive plan, wages &
salary administration, Disciplinary Actions, Statutory compliance, ISO documentation, assisting in civil &
criminal litigation, handling of contract labour and worker related issues, employee welfare, community
development projects, policy implementation, internal & external environment etc.
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PRODUCTION The manufacturing of different types of Brands of soft drink comes under the Production
department. It comprises the process of Water Treatment, Syrup preparation, Container Washing, Mixing &
Proportioning, Filling & Crowning and then the Final Inspection of the product.
SHIPPING This department is also termed as Dispatch Section. Goods are received and dispatched from
shipping. It works in receiving of products from other unit, transferring of fulls from production, Inventory
Management of finished products in First In First Out (FIFO) method, dispatch of finished goods to
distributors, empty received and dispatch to other units. SALES & MARKETING Sales department takes
care of placement of all brands in right proportion in right time at right place. Sales executive always
dispatches in proportion of empty receiving and payment terms. The main aim of this department is that all the
brands should be at distributor's end and must not be any deficiency of any brand. All the activities that help in
enhancing the sales come under marketing. In this, company gives glow sign boards to distributors, Table,
chairs & Umbrellas,
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advertisements, T-shirts, Caps, posters, banners, seasonal schemes, product keeping containers like Fridge, ice-
box etc. STORES All kinds of material are handled in stores either it can be of raw material for production or
materials used in the office. A proper sequence is followed. At very first, Purchase requisition is prepared by
each department and then materials are purchased form the fixed vendors after this the material are distributed
as per the requirement. In broader terms, we can say that the activities performed in this process are receiving
of materials, issuing of materials, rejection handling, scrap handling.
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QUALITY ASSURANCE (QA) QA department ensures the total quality in each and every aspect of the
organization. This quality is not only concerned with individual department like production of goods but it is
concerned with every functioning of the organization such as hygiene in the organization like providing the
nutrious food from the canteen, cleanliness in the bathrooms, not polluting the environment, etc. One of the
major functions of QA department is pre and post manufacturing tests which ensures zero defect so that
consumers can get right quantity and quality of products. All the procured materials have to undergo a rigorous
quality check. Even before procurement the quality of the material has been ensured by the sample check of
material. OBJECTIVES 1. Total Cost - The first and foremost objective is to bring down overall cost. The
costs involved in Logistics Operations:a. Transportation of supplies to the plant and distribution of finished
goods through distribution system. b. c. d. e. Processing customer orders. Packaging. Providing customer
services. Maintaining warehouses.
These functions are directly not responsible for sales. But they do support the sales activities. So, the total cost
approach refers to evaluation of all logistics cost
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expanded for any given sales revenue. By using the cost approach the manager would try to maintain total
logistics cost as compared to the historical performance of the firm and in comparison with other firms of the
same industry. 2. Sub-Optimization - It is a term applied to a situation in which one department's objective or
function is optimized without considering the affect of action on other departments. The goal of logistics is to
manage the system to provide designated levels of manufacturing supply service at the least possible cost. 3.
Cost Trade-off- This occur when a change in destination system causes some costs to increase and other cost to
decrease. 4. Customer Service - Elements of Customer Service are :a. b. c. d. On time delivery. Proper
handling of merchandise. Quantity assembled should be according ti invoice. On time service which includes
after sales service, etc.
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TRANSPORTATION LOGISTICS The distribution function has to perform two functions: it has to generate
demand for the product and secondly, it has to make sure that demand thus created is matched by adequate and
time supply. While all the members of the channel will have to take part in dual functions, the transporter has
primary responsibility. A logistics plan can be drawn by considering the following points: 1. What are the
alternative modes of transport, viz., road, rail, air, etc. available for transporting the goods from the point of
manufacture to the point of purchase? 2. 3. What is the mode which is optimal from the standpoint of total
distribution cost? Is there any need for warehousing arrangements, keeping in view the product and marketing
characteristics'? In fact, the first two points are important enough to be considered even at the time of selection
of markets. The non-availability of required type of transportation facility can outweigh all other marketing
advantages that a company may have. The perishable nature of product demands that must reach the
consumers within the shortest possible time. Therefore, unless the potential markets are served, delivery of
such items cannot be undertaken. To consider the second aspect, namely, selection of the appropriate mode of
transport, it is necessary first to identify the elements that taken together constitute the
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total distribution costs. In a study carried out in the US it is found that the total distribution costs are allocated
over the various components in the following proportion: Administration Transportation Receiving and
Shipping Packaging Warehousing Inventory carrying costs Order processing 11.0% 29.4% 7.8% 11.9% 17.0%
17.04% 5.5%
The proportion obviously will vary form product to product, but all the cost components, with the sole
exception of warehousing, will have to be considered for determining the total distribution costs of each and
every product. It is, therefore, obvious that the selection of the mode cannot be taken only on the basis of the
freight element, which at best will be only an important segment of total distribution costs. But the decision
will depend on the total incidence of costs for alternative modes of transport. In general, the criteria that should
be taken in mind in deciding on the proper modes of transport are: cost, speed, frequency, reliability, safety
and appropriateness with regard to the product.
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FACTORS AFFECTING CHANNEL DECISION : a. Unit Value- In general, direct sales are preferred for
items of high unit
value and wholesalers are approached for items of low value. b. Bulk and weight- If Bulk transportation is
possible, direct exporting is
preferred.. c. Technical nature- Technologically, complex and specialized products are
usually sold direct. d. Perishability- The more perishable the product, the shorter should be the
channel. Leasing is usually adopted for technologically perishable products. e. f. Standardization- Indirect
channels are possible for standardized products. Stage of market development- New products are promoted by
direct
sales. Indirect channels may be adapted for established products.
LOGISTICS IN coca cola : 1. The Company in Ghaziabad does its business in full fledge between March and
June in Eastern U.P. Approx 60% of the business of the year is done in these 4 months of period. 2. The
Company's 80% of business depends on Returnable Glass Bottles. Company always try to receive same
amount of empty bottles as it has been dispatched to distributors because if the organization will not do so then
its production will hamper and that ultimately effect the sale.
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3.
Company always sends two-way vehicles instead of one-way vehicles. The concept of two-way is that the
vehicle will distribute the full bottles to distributors and return back by taking empty bottles from them. The
one-way vehicles cost much higher than two-way vehicles and are also
returned to enable further production. This is beneficial for both Company and Distributor because company
gives glass bottles and crates on loan to distributors and their money is returned after receiving the bottles in
the plant. 4. The Company pays freight according to Distance & Load. It has a policy of paying freight
according to Load Slabs & Destinations, (a table is given below showing hypothetical rates Load - wise).
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Coca-cola In India
Famous Ads of Coke
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Famous Ads of Thums-up
Famous Ads of Fanta
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Famous Ads of Sprite & Limca
Famous Ads of Maaza
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Table- I Prefer to have cold drinks
Response Yes No Total
No of Respondent 100 00 100
Percentage ( %) 100% 00% 100%
Analytical Interpretation: The given Chart & Table show that the most no. of respondent like to take cold drink
because it gives the full satisfaction in the hot and humid day. It was found that 100% of respondent likes to
take the soft drinks and 00% respondent dont want to take cold drinks. The people who donts prefer are
because of their taste and preference. They are of the perception that Lassie and Nimbu pani are beneficial than
the carbonated soft drinks.
GRAPH-1
79
Prefer to have cold drinks
100%
0%
Yes No
80
Table- II Consumption of cold drinks in a day
Response (Time a day) Less than 2 24 More than 4 + Total
No of Respondent 54 35 11 100
Percentage (%) 54% 35% 11% 100%
Analytical Interpretation:
The given diagram & table show the frequency of taking cold drinks in a day. It was found that 54% of
respondent takes the less than 2 cold drink a day, 35% of respondent takes 2 4 cold drinks a day. And 11% of
the respondent likes to takes more than 4 cold drinks in a day. The people who consume more than two cold
drinks have a habit of a high consumption. For them a change in price doen`s changes their demand to a great
extent. They also maintain a brand loyalty in the brand they are regularly consuming.
81
Graph II Consumption of cold drinks in a day
60 50
54
35 40 30 20 10 0 11
Less than 2
24
More than 4 +
82
Table- III Preference of flavours
Flavour Cola Citric Orange Lemon Others Total
No of Respondent 41 26 21 10 02 100
Percentage 41% 26% 21% 10% 02% 100%
Analytical Interpretation:
The given graph & table show the most popular flavour in cold drinks is Cola. It was found that the 41%
respondent likes the Cola Flavoured, 21% of respondent likes the Orange flavoured, 26% of respondent likes
the citric flavour, 10% likes the lemon flavour and only 2% likes the other flavoured.
45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
41%
26% 21%
GRAPH-III
10%
Preference of flavours
Cola Citric Orange Lemon
2%
Others
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Table- IV
84
Preference of Brand name
Response Yes No Cant Say Total
No of Respondent 56 39 05 100
Percentage (%) 56% 39% 05% 100%
Analytical Interpretation:
The graph & table clear view regarding the importance given to a brand name while choosing the cold drinks.
It was found that the 56% of Respondent says Yes and 39% of respondent say No and the only 5% of
respondent not in a position to say anything.
5%
39%
Graph IV Preference of Brand name
56%
Yes No Cant Say
85
Table- V
86
Factors Influences choosing particular Brand
Response Brand Flavour Advertisement Chilled Total
No of Respondent 28 48 06 18 100
Percentage (%) 28% 48% 06% 18% 100%
Analytical Interpretation:
The chart and diagram shows that the way respondent likes the particular brand of cold drinks. It was found
that 48% of respondent likes the because of flavour, 28% respondent likes the cold drinks because of brand,
18% of respondent likes because of chilled and only 6% of respondent likes because of advertisement.
GRAPH-V Factors Influences choosing particular Brand
87
88
Table- VI Opinion towards Popular Brand
Brands Coke Pepsi Others Total
No of Respondent 58 21 21 100
Percentage (%) 58% 21% 21% 100%
Analytical Interpretation:
The given diagram gives the view regarding the most popular and demanded brand. It was found that the 58%
of respondent preferred the .Coke as most popular brand, 21% of respondent say Pepsi as most popular brand,
16% of respondent referred the coke as the popular brand and the only 21% of respondent say others was a the
most popular brand.
Graph VI Opinion towards Popular Brand
89
60% 50% 40% 30% 20% 10% 0% Coke Pepsi Others Series1
Table- VII Availability in retailers shop
90
Response Cola Citric Fruit flavoured Total
No of Respondent 61 30 9 100
Percentage (%) 61% 30% 9% 100%
Analytical Interpretation:
The given chart table shows that the most available flavour on the respondent retailers shops. It was found that
the 61% of respondent (Consumers) say that they find Cola flavour on their retailers shop.30% of respondent
found the citric flavor on their retailers shop. Science cola flavour is a Universal flavour in India, with
consumers of all age, sex and preference accepting it whole heartedly.
91
Graph VII Availability in retailers shop
70% 60% 50% 40% 30% 20% 10% 0%
61%
30%
9%
Cola
Citric
Fruit flavoured
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Table- VIII Availability in College Canteen/Locality/Colony
Brand Coke Pepsi Others Total
No of Respondent 51 47 02 100
Percentage (%) 51% 47% 02% 100%
Analytical Interpretation:The graph & table gives the information regarding the available the available brand
on their college canteen or a colony or a locality. It was found that 51% of respondent found the Coke brands
of cold drink highly available while 47% of respondent said that they found Pepsi brand as highly available
and only 02% of respondent said that they found other brand like Frooti or others brands highly available. This
difference in the response is because of the consumption of different brands in different segments.
2%
Coke 47%
Graph VIII Pepsi Availability in College Canteen/Locality/Colony
Others
51%
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Table-IX Opinion towards Taste
(i)
In a cola flavor.
Brand Coke Pepsi Total
No of Respondent 75 25 100
Percentage (%) 75% 25% 100%
Analytical Interpretation:
The given table and diagram gives the idea of the respondent opinion regarding the Cola flavour drink. It was
found that the 75% of respondent likes the Coke and the only 25% respondent likes the Pepsi flavour.
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(ii)
In Citric flavoured?
Brand Sprite Mountain Dew 7`Up Total
No of Respondent 41 30 29 100
Percentage (%) 41% 30% 29% 100%
Analytical Interpretation:
The given table and Diagram gives the idea of the respondent opinion regarding the citric flavour drink. It was
found that the 41% of respondent likes the Sprite, 30% of respondent likes the Mountain Dew and the only
29% of respondent likes the 7`up in Citric flavoured. The consumers of Sprite say that it has a better and
genuine taste than the Mountain Dew flavoured of Pepsi. On the other side the consumer of Mountain Dew are
of the opinion that it has a less strong taste and also has an appealing light green colour.
(iii) In orange flavoured?
95
Brands Fanta Miranda Orange Others Total
No of Respondent 64 28 08 100
Percentage (%) 64% 28% 08% 100%
Analytical Interpretations:
The above given table and chart show the opinion of the respondent regarding Orange flavour. It was found
that the 28% of respondent likes the Miranda Orange of Pepsi brand, 64% of respondent likes the Fanta of the
Coke brand and 8% of respondent likes the other soft drinks of orange flavour. The consumers of the Fanta
brand are high as compare to Mirinda due to a bigger consumer segment of females and children. On the
country although Fanta is a well established brand not only in India but across the world for more than last
fifty years it is at the second position in India. It is because a major segment of children and females prefer an
orange flavour with a soft taste. Fanta has a strong taste as compared to Miranda.
(iv)
In Mango flavour?
Brands Mazza
No of Respondent 37
Percentage (%) 37%
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Slice Others Total Analytical Interpretations:
22 41 100
22% 41% 100%
The above shown table and chart gives the view regarding the opinion of respondent about the Mango flavour.
It was found that the 41% of respondent likes Frooti, 37% of respondent like Mazza of Coke and only 22% of
respondent likes the Slice of Pepsi brand. One of the greatest advantages with Frooti is that it comes in tetra
pack which is a one way pack. People find it convenient to take it home for consumption. Even coke and Pepsi
have introduced tetra pack in the Mango drink recently but it will definitely take some time take away market
from the market leader. Also Frooti is a well established brand has available in tetra pack for a long time.
97
Graph IX Opinion towards Taste
(I) IN A COLA FLAVOR
25% 46% Thumps up
29%
Coke Pepsi
98
Graph IX Opinion towards Taste
(II) IN CITRIC FLAVOURED?
29% 41% Sprite Mountain Dew 30% 7`Up
99
Graph IX Opinion towards Taste
(III)
IN ORANGE FLAVOURED
8% 28% Fanta 64%
Miranda Orange Others
100
Graph IX Opinion towards Taste
IN MANGO FLAVOUR?
41%
37% Mazza Slice 22% Others
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Table-X Cause of Choosing Brand
Subject Blend Brand Image Availability Advertisement Total
No of Respondent 20 38 26 16 100
Percentage (%) 20% 38% 26% 16% 100%
Analytical Interpretations:
The graph & table above say that why the respondent like their favoured brand. It was found that 38% of
respondent likes his brand because of brand Image, 26% of respondent likes because of availability, 20% of
because of Blend and only 16% of advertisement. Brand image refer to the perception of the customers
regarding the choice of a particular brand. It comes with the kind of advertisement brought by the company .
Blend over here refers to the taste of the flavour demanded.
38% 40% 35% 30% 25% 20% 15% 10% 5% 0% Blend Brand Image Availability Advertisement 20% 16%
26%
(IV) Graph X
Cause of Choosing Brand
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Table-XI Most appealing Brand advertisement
Brands Coke Pepsi Total
No of Respondent 52 48 100
Percentage (%) 52% 48% 100%
Analytical Interpretations:
The given chart shows that the respondent about the most appealing brand advertisement. It was found that the
52% of respondent says that Coke advertisement is most appealing, 48% of respondent says Pepsi
advertisement is most appealing one. The advertisement of Coke features Bollywood star like Aishyarwa Rai,
Hritik Roshan, Karishma Kapoor and Amir Khan who are highly acceptable by the public. The advertisement
of Coke featuring Amir Khan with a punch line Thanda Matlab.Coca-Cola It was a super hit
which took Coke not only to the rural markets but also overturned the market of Pepsi.
103
Graph XI Most appealing Brand advertisement
48% Coke 52% Pepsi
104
Table-XII Most appealing Brand Punch Line
Brand
Coke Pepsi Total
No of Respondent
68 32 100
Percentage (%)
68% 32% 100%
Analytical Interpretations:
The chart shows the opinion regarding the most effective punch line in respondent view. It was found that 68%
of respondent feel that Coke punch line is most effective, 32% of respondent feels Pepsi Punch line is most
effective, Major no. of people thinks that the most effective punch line is Thanda Matalab.Coca-Cola
and Punch
Matlab Chota Coke, Then Ye pyass hai Badi and yeh dil mange more
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Table XII Most appealing Brand Punch Line
38% 40% 35% 30% 25% 20% 15% 10% 5% 0% Coke Pepsi Thumps up 32% 30%
106
Table- XIII Opinion towards product, which is promoted by celebrity
Response Yes No Cant say Total Analytical Interpretations:
The group & table show that the people like the product of it promoted by a celebrity. It was found that 40% of
respondent said that they the product because of the celebrity shown in the advertisement consuming it,32% of
respondent says No about the celebrity promotion, 28% respondent not in a position to say anything. In India
people have a great craze for their favorite celebrities They have a lot of love for their favorite celebrities they
want to imitate by doing what they do as shown in the advertisement.
No of Respondent 40 32 28 100
Percentage (%) 40% 32% 28% 100%
Graph XIII Opinion towards product, which is promoted by celebrity
107
28% 40% Yes No 32% Cant say
Table XIV Opinion towards Pricing Strategy
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Response Yes No Can`t Say Total
No of Respondent 64 22 14 100
Percentage (%) 64% 22% 14% 100%
Analytical Interpretations:
The given table & diagram shows that how effective the companies facility the consumer. It was found 64% of
respondent says yes. 22% of respondent says No and 14% respondent cant say anything. India is a mass
market for the consumer product but at the same time it is also a very Price Sensitive Market. So with a
small decrease in price results in a drastic increase in the demand. Since soft drink is a consumer product, the
price has a great influence on the demand of the product.
109
Table XIV Opinion towards Pricing Strategy
14%
Yes 22% 64% N o C an`t Say
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FINDINGS AND ANALYSIS
SWOT ANALYSIS STRENGTH:
Coca-cola Potential brands position in the market. Good quality and innovation of product for long term
customer relationship. Good advertising campaign, and brand ambassador. Advertisement campaign more
effective and change punch line make. Emotional touch with customer and retail. High investment in
research and development. Coca-cola has a good market share. Segment of coke product to every age
group. To satisfy of retail or through schemes SGA, display.
WEAKNESS:
Lack of proper distribution in many areas. Lack availability 1 it & 1.5 it product pack. Lack supply of
Kinley water in the market. Rising No. of date dealers that will wrong effect in market condition. Retailers
are not getting schemes at the time. No distribute enough signage to retailers.
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OPPORTUNITY:
Coke is able to capture large mkt. Share. More monopoly counters of coke brand. To improve market mix
(Product, price, promotion, place). To increase the sale of Kinley water.
THREATS:
Pepsi is the major competitors, that means watch myopia in the market every time. Pepsi have captured
major market of 500 ml, 1.5 & 2 lt. Retailers divert to pepsi because they are getting good schemes and SGA
signage. Increase local brand in the market.
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FIELD EXPERIENCE
The success of any survey depends upon the quality and integrity of the surveyor who collect the basic data by
expressing the subject under the study and on the respondents who provides the data required by filling up the
questionnaire .The accuracy of the data collected solely depends upon the cooperation and truthfulness of the
person who is being interviewed. Keeping this in mind i have tried my best to collect the reliable data. During
this process I came across a Variety of experiences some interesting and some bitter ones. After knowing the
utility of the survey some of the respondents filled up the questionnaire sincerely whereas some of the other
were not interested in it . How ever, most of respondents were friendly and cooperative and willingly filled up
the questionnaire with utmost sincerity and to best of their knowledge. Barring few exceptions I had a pleasant
time with respondents. I hope that the respondents did not feel the interview insipid and boring.
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SUGGESTIONS & RECOMMENDATIONS
Doing a survey on consumers market provided a lot of insight into the dynamics of the market place and with
it valuable insights were also gained into the psyche of consumer and owners.
1. SUPPLY
The demand of Thums up & Maaza far exceed the supply especially in case of 200ml and pet bottles. Few
shop owners clamed that many a times no supply is made for 3 days and some times even more.
Sometimes the delivery vans of Coca-Cola starts late from the distribution point and that of rivals reach early
.so eateries, which generally serve soft drinks in the glass, buy the soft drinks from the delivery van which
arrives first. Salesman at the delivery van to be inconsistent on certain meters likes the concept of broken
bottles. When dealing with the shop and the eatery owners some salesman do exchange bottles while some do
not?
All flavors and all size of bottles are kindly available in the market.
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2. COMPANY REPRESENTATION Owners confirmed that Company representatives DONT COME
WHEN CALLED REPEATEDLY.
The Company must ensure that the representatives do visit an outlet at least once in 3 days to listen and to
attained to complaints, if any.
3. SALES PUSH BY EAT & DRINK OUTLET
The Company easily influenced many eatery owners, which provide them with better facilities. There was a
tendency to push the product of the Company which ever offered them better scheme or benefits.
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CONCLUSION
From this summer training and project titled "Market Survey of Right Execution for Coca-Cola 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
GHAZIABAD 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. As we know till now since ill soft drink
industry the concept of brand loyalty is not in that shape in which it is in countries. So company could take
some steps to be to have a good report with the retailers why supply them regularly and provide them with
other monetary benefit.
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LIMITATION OF RESEARCH
1.The area of study is limited to the Market Survey of Right Execution for Coca Cola aspects of the system,
while the marketing has other crucial areas too which were left uncharted
2. The study is limited to eastern region of coca cola which is a multinational company, so the area plays as a
constraint in the study.
3. The time period allotted for the study was only of two months, which may provide a deceptive picture in
comparison of the study based on long run.
4. The study was based on both primary and secondary data but the relevance of the secondary data may not be
justified.
5. The success of any survey depends upon the quality and integrity of the surveyor who collect the basic data
by expressing the subject under the study and on the respondents who provides the data required by filling up
the questionnaire .The accuracy of the data collected solely depends upon the cooperation and truthfulness of
the person who is being interviewed. 6. Interaction skills as well as the behaviour of the respondents also
played as a constraints during the research.
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QUESTIONNAIRE
1. Name of the shop :2. Address: -

1. Educational Background
(a) (b) (c) (d)
Matric & Below Intermediate Graduation Post Graduation
2. Sale of requirement? (a) (c) Pepsi Other (b) Coke
3. If yes how frequently? (Daily) (a) (c) Pepsi Other (b) Coke
4. Do you give importance to brand name while choosing your cold drink? (a) Yes (b) No (c) Cant Say
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5. Which brand you prefer most? (a) (d) Coke Others (b) Pepsi (c) Both
6. You like the particular brand of cold drink because of? (a) (d) Brand Chilled (b) Flavor (c) Advertisement
7 In your opinion which brand of cold drink is most demanded or popular? (a) Coke (c) Pepsi (d) Others.
8. Which brand is more available in your retailers shops? (a) Cola (b) Citric (c) Fruit Flavored.
119
9. Which brand of cold drink do you find most in your college canteen/colony/locality? (a) Coke Brand (b)
Pepsi Brand (c) Others.
10. In your opinion which soft drink is better taste? (i) In Cola Flavor (a) Coke (ii) (c) Pepsi
In Citric Flavoured. (a)Sprite (b) Mountain Dew (c) 7`Up
(iii) (a)
In Orange flavoured. Fanta Others. (b) Miranda Orange (c)
(iv)
In mango Flavoured. (a) Mazza (b) Slice (c) Others.
11.
Why do you like your brand? (a) (d) Blend (b) Brand Image (c) Availability
Advertisement
12.
Which brand advertisement appeals you most? (a) Coke (b) Pepsi (c) Others.
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13.
Most effective punch line in your opinion of? (a) Coke (c) Pepsi (b) (d) Thumps up Others.
14.
You like the product which is promoted by the celebrity? (a) Yes (b) No (c) Cant Say
15.
Do you think that the pricing strategy adopted by the cola companies fascinate the consumer? (a) Yes (b) No
(c) Cant Say
16.
Any Suggestion:-

...
... ....
Thank You,
Signature
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BIBLIOGRAPHY
1. Research Methodology, Kothari. C.R., Research Methodology Methods & Techniques, New-Delhi, Wishwa
Prakashan, edition 2003. 2. Multi Level & Direct Marketing, Branding, Kotler, Philip., Marketing
Management, Delhi, Pearson Education (Singapore) Pte. Ltd, 11th edition. 3. Marketing Strategy, Varshney,
R.L. & Bhattacharya, B., International Marketing Management, New-Delhi, Sultan Chand & Sons edition
2003. 4. cola.com> 5. Merchandising www.distributing-company.com. 6. Retailing, Company Souvenirs. &
Route Productivity, www.ask-jeeves.com, Company Profile, Web-Site:- www.coca-cola.com