A

MARKET SURVEY OF BRAND AVAILABILITY IN THE MARKET / MARKET SHARESIN

LUCKNOW UP (E)

Submitted by

Bhaskar SinghMBA IIIrd Sem,

Enrollment No :A7001909093Specialization: Marketing and HRUnder guidance of:

Industrial Guide Faculty Guide

Vyom Srivastava Mr.Sarveshwar PandeyRTM Manager FacultyABS

SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME MASTERS IN BUSINESS ADMINISTRATION(2009-2011)

AMITY BUSINESS SCHOOL,AMITY UNIVERSITY UTTAR PRADESH LUCKNOWDECLARATION

I hereby certify that the work which is being presented in the project entitled, Market survey of brand availability in the market / market shares in partial fulfillment of the requirements for the award degree of Master of Business Administration at AMITY BUSINESS SCHOOL, AMITY UNIVERSITY,UTTAR PRADESH,LUCKNOW , is an authentic record of my own work carried out under the supervision of Mr.Sarveshvar Pandey, faculty, ABS, Lucknow.The matter presented in this Project Report has not been submitted by me for the award of any other degree of this or any other University.

Bhaskar SinghThis is to certify that the above statement made by the candidate is correct and true to the best of my knowledge.

Mr. Sarveshvar Pandey Faculty, ABS Lucknow

STUDENTS CERTIFICATE

Certified that this report is prepared based on summer internship project undertaken by me in (name of company) COCA-COLA, Lucknow from 03rd May 2010 to 06th July 2010, under the able guidance of Mr. Vyom Srivastav,RTM Manager,in partial fulfilment of the requirement for award of degree of MASTERS IN BUSINESS ADMINISTRATION (M.B.A) GENERAL from Amity University Uttar Pradesh.Date: ___________________

Signature

Signature

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Name_______________Name_________

Name ___________

Student

Faculty Guide

Course Director

ACKNOWLEDGEMENTThe project on Market survey of brand availability in market / market shares is possible not only due to my work. There were certain other people involved without whose support this project would not have been possible. They provided me the kind of backing up that one requires for successful completion of task.

This project in itself is an acknowledgement to the inspiration, drive and valuable guidance contributed to it by Prof. R.P Singh, Director of Amity Business SchoolI am highly obliged and grateful to Mr. Sarveshvar Pandey (Faculty Member & Internal Guide) for providing me with valuable advice and endless supply of new ideas and support for this project.

I express my sincere gratitude towards Mr. Vyom Srivastav my project guide, whose valuable guidance, constant interest and encouragement have helped me in successfully completing the project and who provided practical exposure for the project and her valuable guidance during the project work.

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I am also thankful to all the respondents who spared their valuable time in filling up the questionnaire and helped me in analysis and successful completion of the project.

My special thanks to CRC Dept. (MBA program, ABS) for priceless guidance and it goes without saying that without their support this project would not have been possible.

(Bhaskar Singh)PREFACEIt gives me an immense pleasure to put my project on Market survey of brand availability / market shares. This project is made after a thorough study on the environment and working atmosphere in the Coca cola situated Sitapur Road, Ring Road in Lucknow.It is difficult for a common man to understand each and every aspect of the organization. I have tried to present it in a lucid manner through the language of common man so that everyone may understand the complications in practice. Complications of the project have been made clear by suitable data wherever necessary.

My study is based on Market sevey brand availability / market shares as a lot of effort is made by the Finance and Account department for meeting out the obligations like proper identification and classification of assets , movement of assets , accurate measurement & recording of cost to be capitalized & depreciated etc. for proper working management.

In all my modesty, I wish to record here that a sincere attempt has been made for the presentation of this report. I also thrust that this study will not only prove to be of an academic interest but also will be able to provide an insight into the area of working in an organization.

-BHASKAR SINGH LIST OF CONTENTS

No. Particulars Page No

1. Synopsis of the report 8 2. Objective of Study 9 3. Chapter I

Introduction to Topic 10-604. Chapter II 61-88 Introduction of Company About company History of Coca-cola Organizational structure

Principles & vision of Company

SWOT Analysis5. Chapter III 89 -108 Research Design Method of Data Collection Data Analysis Limitation Of Study 6. Chapter IV 109-115 Findings Conclusion Suggestion & Recommendation 7. Annexure 116-119 Questionnaire Bibliography

SUMMARY OF THE REPORTThe project directly deals with the growth potential of available brands of soft drinks in the market and shows the market share of each of available brands. So the study is in the following manner:

If the market share of brands of Coca Cola is less than that of its rivalry brands then the project gives a platform to the company to develop an improved marketing and distribution plan which could boost up sales.

The project also deals with the distribution efficiency of Coca Cola with reference to its products and so if the company is having loopholes in its distribution system then that could be improved by studying this project report.

The project also deals with the competitive characteristics of available juice products, and other carbonated products in the market and so this project would help the company to know its products core competencies and competencies of its rivalries. These competencies are measured through the following parameters and these are Pricing, Availability, Service, Taste and Preference of consumer pack.

The project is also deals in the following manner:

The project directly deals with interaction of author with different levels and kinds of people. So this project helps him to understand the corporate communication system.

OBJECTIVE OF STUDY

1. To know about the popularity & consumption level of coca cola as a brand.

2. To know about the taste & various cold drink under the name of coca cola.

3. To know about the preference of people for different cold drink.

4. To know about the reason to dislike any particular cold drink.

5. To know about the services provided by the agencies or shops.

6. To know about the most consumable quantity & packing.CHAPTER I

THEORETICAL PRESENTATION OF THE TOPIC

INTRODUCTIONThe meaning of brandsBrands are a means of differentiating a companys products and services from those of its competitors.

There is plenty of evidence to prove that customers will pay a substantial price premium for a good brand and remain loyal to that brand. It is important, therefore, to understand what brands are and why they are important.

Macdonald sums this up nicely in the following quote emphasizing the importance of brands:

it is not factories that make profits, but relationships with customers, and it is company and brand names which secure those relationshipsBusinesses that invest in and sustain leading brands prosper whereas those that fail are left to fight for the lower profits available in commodity markets.

What is a brand?One definition of a brand is as follows:

A name, term, sign, symbol or design, or a combination of these, that is intended to identify the goods and services of one business or group of businesses and to differentiate them from those of competitors.Interbrand - a leading branding consultancy - defines a brand in this way:

A mixture of tangible and intangible attributes symbolized in a trademark, which, if properly managed, creates influence and generates value.Three other important terms relating to brands should be defined at this stage:

Brand equityBrand equity refers to the value of a brand. Brand equity is based on the extent to which the brand has high brand loyalty, name awareness, perceived quality and strong product associations. Brand equity also includes other intangible assets such as patents, trademarks and channel relationships.Brand imageBrand image refers to the set of beliefs that customers hold about a particular brand. These are important to develop well since a negative brand image can be very difficult to shake off.

Brand extensionBrand extension refers to the use of a successful brand name to launch a new or modified product in a new market. Virgin is perhaps the best example of how brand extension can be applied into quite diverse and distinct markets.

Brands and productsBrands are rarely developed in isolation. They normally fall within a business product line or product group.

A product line is a group of brands that are closely related in terms of their functions and the benefits they provide. A good example would be the range of desktop and laptop computers manufactured by Dell.

A product mix relates to the total set of brands marketed by a business. A product mix could, therefore, contain several or many product lines. The width of the product mix can be measured by the number of product lines that a business offers.

For a good example, visit the web site of Hewlett-Packard (HP). HP has a broad product mix that covers many segments of the personal and business computing market. How many separate product lines can you spot from their web site?

Managing brands is a key part of the product strategy of any business, particularly those operating in highly competitive consumer markets.

The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.

Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.

The objectives that a good brand will achieve include:

Delivers the message clearly

Confirms your credibility

Connects your target prospects emotionally

Motivates the buyer

Concretes User Loyalty

To succeed in branding you must understand the needs and wants of your customers and prospects. You do this by integrating your brand strategies through your company at every point of public contact.

Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which you can influence, and some that you cannot.

A strong brand is invaluable as the battle for customers intensifies day by day. It's important to spend time investing in researching, defining, and building your brand. After all the brand is the source of a promise to your consumer. It's a foundational piece in your marketing communication and one you do not want to be without.

Branding is used to create emotional attachment to products and companies. Branding efforts create a feeling of involvement, a sense of higher quality, and an aura of intangible qualities that surround the brand name, mark, or symbol.

Successful branding efforts build strategic awareness where people not only recognize your brand, but they also understand the distinctive qualities that make it better than the competition. Branding is more important today than ever due to ever-increasing advertising clutter, media fragmentation, the commoditization of products, and the seemingly limitless choices we are offered in just about every product category.

As marketers, we need to work hard to ensure that we are offering our customers strong brands that are clearly differentiated and that offer clear, real value and unique benefits. The need for branding has never been greater.

IMPORTANCE OF BRANDING A strong brand influences the buying decision and shapes the ownership experience.

Branding creates trust and an emotional attachment to your product or company. This attachment then causes your market to make decisions based, at least in part, upon emotion-- not necessarily just for logical or intellectual reasons.

A strong brand can command a premium price and maximize the number of units that can be sold at that premium.

Branding helps make purchasing decisions easier. In this way, branding delivers a very important benefit. In a commodity market where features and benefits are virtually indistinguishable, a strong brand will help your customers trust you and create a set of expectations about your products without even knowing the specifics of product features.

Branding will help you "fence off" your customers from the competition and protect your market share while building mind share. Once you have mind share, you customers will automatically think of you first when they think of your product category.

A strong brand can make actual product features virtually insignificant. A solid branding strategy communicates a strong, consistent message about the value of your company. A strong brand helps you sell value and the intangibles that surround your products.

A strong brand signals that you want to build customer loyalty, not just sell product. A strong branding campaign will also signal that you are serious about marketing and that you intend to be around for a while. A brand impresses your firm's identity upon potential customers, not necessarily to capture an immediate sale but rather to build a lasting impression of you and your products.

Branding builds name recognition for your company or product.

A brand will help you articulate your company's values and explain why you are competing in your market.

QUALITIES OF A SUCCESSFUL BRAND

Core Elements Description Example

CompetentsA product or service must fulfill its promise and ensure the delivery of high-quality services are aligned with the company/organizations vision, and delivered with genuine commitment to customer satisfaction.

Dell Inc. provides consumers with the most effective computing solutions to meet their needs. As a result, Dell has become an industry-leader.

Core Elements Description Example

Clear

A strong brand is clear about what it is and what it is not Volvo is clear about its commitment to safety. Their brand is not about speedy sports cars, small economy cars, or luxury cars, but about safety and the people you care to keep safe.

Compelling

A brand is appropriate for and interesting to its target audience. If not, it is ineffective and useless. BMW is focused on providing the ultimate driving experience for its luxury-performance automobile consumers

ConsistentBrands are always what they say and who they are to bolster their brand attributes. Wal-Mart has been consistent branding itself as a low-cost retailer with a pledge to customer service, and satisfaction.

Constant

Brands are always visible to their customers and prospects. Coca-Cola is the worlds most recognized brand with its trademark bottle shape and dynamic ribbon below the Coca-Cola

Connected

A brand connects to appropriate communities, affiliations, and partnerships. Establishing and maintaining a network of partners, intermediaries, and customers is important. Organizations should develop relationships that can reinforce their brand. The United Way of America has established and built partnerships with government, schools, 211s, National Football League, and other organizations that have reinforced their focus on community building.

Committed

Brands are not a one-time event; it is not about fads, but built over time and requires steadfast commitment to ensure long lasting success. Brands build value over time through consistently living the

Brand promise. The strongest brands in the market have either been around for a long time, such as Coke and IBM. Or they have set the stage to be here for a long time, such as Amazon and Microsoft).

Current

A brand is based on current needs with room to meet new and/or different needs in the future.

STRATEGIES OF COCA-COLAIn order to achieve this mission, Coca Cola create value for all the constraints it serve, including consumers, customers, bottlers, and communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:

1. Consumer demand drives everything Coca Cola do.

2. Brand Coca Cola is the core business

3. Serve consumers a broad selection of the nonalcoholic ready-todrink beverages they want to drink through out the day.

4. Be the best marketers in the world.

5. Think and act locally.

6. Lead as a model corporate citizen.

The main strategies discussed here are as follows:

Strategic Planning Strategies of Quality Expanding Target Market Strategies of Getting Goals I.E. "High Profits" Marketing Strategy Price Strategy Promotion Strategies Distribution Channels Facilitating the Product By Infrastructure Advertisement Sales Promotion ActivitiesThe details are as follows:

STRATEGIC PLANNING

In last years, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the world's leading company. Company accomplished the crust of it's strategy as Worldwide volume increased by 4 percent with strong international growth of 5 percent.

Earnings per share grew by 82 percent.

Return on common equity grew from 23 percent to 38 percent this year.

Return on capital increased from 16 percent in 2000 to 27 percent.

The company has generated free cash flow of $3.1 billion, up from $2.8 billion

The marketing strategy for the future is as follows:

Accelerate carbonated soft-drink growth, led by Coca-Cola.

Selectively broaden the family of beverage brands to drive profitable growth.

Grow system profitability and capability together with our bottling partners.

Serve customers with creativity and consistency to generate growth across all channels.

Direct investments to highest potential areas across markets.

Drive efficiency and cost-effectiveness everywhere.

STRATEGIES OF QUALITYAfter Micro and macro analysis Brand "coke" is primarily role

1. Enhance competition moments

2. When people watch cricket

3. Through commercialization

4. Fun time

EXPANDING TARGET MARKETIn last 2 years Coke has come back in aggressive manner.

Consumer has choice

Attractive brand name

Brand differentiating

Consumer Has Got Choice:Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd best name but it can get a better position after some time

Attractive Brand Name:Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word "ok". So people can better differentiate brands with each other.

Brand Differentiation:Now different companies have got different brand names. So, people can distinguish between brands. Two major brands "coke" and "Pepsi" also have brand names.

STRATEGIES OF GETTING GOALS i.e. "HIGH PROFITS"To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows. Volume can be increased

Interest level of consumers

To take part in energetic festivals

MARKETING STRATEGYWhat people want in a beverage is a reflection of which 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 Pakistan 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.

PRICE STRATEGYTrade 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 following "Seen as sold"

Different Price in Different Seasons:Some times Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan.

So in winter they reduce their prices to maintain their sales and profit.

PROMOTION STRATEGIESGetting shelves:They get or purchase shelves in big departmental stores and display their products in those shelves in attractive style.

Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.

Sale PromotionCompany also do sponsorships with different college and school's cafes and sponsors their sports events and other extra curriculum activities for getting market share.

DISTRIBUTION CHANNELSCoca Cola Company makes two types of selling Direct selling

Indirect selling

Direct SellingIn 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 SellingThey 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.

FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure these includes: Vizi cooler

Freezers

Display racks

Free empty bottles and shells for bottles

ADVERTISEMENTCoca Cola Company use different mediums

Print media

Pos material

TV commercial

Billboards and holdings

HOW COKE DETERMINE THE YEARLY BUDGETCoke determines its yearly budget by the

Sales volume

Profitability

Target volume

Sales Volume:Coke determines its yearly budget through the sales volume. They first concentrate on the thing is "what is the condition of their sales?" if the condition is good of their sales then they definitely increase their production and sales volume.

Profitability:The second thing through which they determines budget is the "profit" .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. To get profit is the first priority of the Coke.Target Volume:To run the business every industry increases volume in specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target.

Coke did the same.

SALES PROMOTION ACTIVITIES

Coca-Cola Cricket

Coca-Cola Concerts

Coca-Cola Food Mela

Coca-Cola Basant Festival

Coca-Cola GO-RED

Coca-Cola Party in a Park

Coca-Cola Shopping Festival

Coca-Cola Pet Promotion

Coca-Cola Ramzan Campaign

Coca-Cola Wonder of the World Promotion

Coca Cola TV Maaza

Coca-Cola & Mc Donald's

Fanta & Sprite Launched

Diet Coke

Coca-Cola

From the Three As to the Three Ps

Coca-Cola used to focus its strategy on the three As: availability, acceptability, and affordability. While these provided for tremendous growth, they also led to lowered entry barriers. Today, Coca-Colas mantra is the three Ps: preference, pervasive penetration, and price-related value.The Power of Brand AccessibilityIf you were another soft drink company, you might define your competitive frame of reference as the cola market or the soft drink market or even the beverage market. But Coke thinks of its business and its market share in terms of share of human liquid consumption. This makes water a competitor. In fact, a Coke executive has said that he wont be satisfied until there is a Coca-Cola faucet in every home. Coca-Colas mantra is within an arms reach of desire.Coca-Cola is Serious about Brand Building

Each month, Coca-Cola tests 20 brand attributes with 4,000 consumers to measure movement. The company also compensates (bonus and other compensation components) a large portion of its senior managers based on brand preference.One Final Coca-Cola Fact

A recent Coca-Cola annual report reported that the second most recognized expression in the world after ok? is Coca-Cola.Coca Cola has been the leading brand in the world for eight years running and probably would remain so for many years because the company continues to reinvent its brand.

And Google, which is only ten years old has made it to the number 10 position in the world.

The secret behind the Coca Cola brand success is not the result of mere chance or excessive spending on advertising, it is as a result of careful and systematic strategy and Ghanaian businesses can learn from that.

Interbrands has this advice for businesses in its 2008 report on brand rankings: Regardless of your view of the world, in good times and bad, your brand is your companys most valuable asset. Understanding how your brand creates value for you is key to maintaining market leadership or establishing it in the first place.

Indeed, in Ghana, bland mediocrity has succeeded for so long to the extent that businesses have grown to take consumers for granted. This honeymoon, however, is not likely to last for long as information and knowledge becomes widespread.

As a matter of fact the 2008 general elections in Ghana is a typical example as well as a signal that the average Ghanaian is becoming sophisticated and informed in taking crucial decisions when it matters most.

KEY ELEMENTS OF MARKETING STRATEGY1. Assessing Market Potential.2. Route Riding and Indicators.3. Market Development.4. Sales Planning.5. Consumer Concern Handling.ASSESSING MARKET POTENTIAL

Market potential is needed to draw better market strategies so that it adds on to our business . Market potential means that what market offers us in form of business. Wrong asessment canlead us to wrong conclusion hence wrong strategies .

TOOLS REQUIRED TO ASSESS THE MARKET.

1. Every Dealer Survey (EDS).2. Channel Assessment 3. FMCG penetration.4. Chilled Availability.5. Market Share6. Per Capita Consumption.7. CAGR8. VPO9. PPO10. ActivationEvery dealers survey :

Every Dealers Survey gives us the true picture of the market and the satisfaction level of our dealers with

Company

The concerned ASM

The Brand

The Product.

Salesmen. MD (Market Developer)This tool of assessing the market is an effective tool which not only gives us the critical information of our outlets but also the activities done by our competitors in the market, so it gives us the true picture from which we can derive many information which can prove critical for our sales and will help us in better strategy making.

Channel assessment:

For an easier understanding of our market, we divide the market into channels and then study them channel wise.

Grocery: The local kirana store, in other words we can say a convenience store.

Pan Bidi: small vendors who sells tobacco and other related products.

Eating and Drinking: place which has at least five table chairs to serve the customers are considered as eating and Drinking.

But in the city like Lucknow, city had outlets belonging to other channels like :

Cinema

Transportation

Education

FMCG and village penetration:

In order to know the potential of the market one needs to know how many outlets are there and then how many FMCG outlets are there in it , further how many Coke outlets are there , it will tell us how much we covered Area a market and how much potential is still un tapped.

FMCG penetration:

NUMBER OF COKE OUTLETS / NUMBER OF FMCG OUTLETS * 100

Village penetration:

Village penetration survey shows us that how many villages with a population of 500 needed to be reached

NUMBER OF KO SELLING VILLAGE / NUMBER OF FMCG SELLING VILLAGES* 100

Chilled availability:

The concept of this is that coke and its product must be served chilled and in order to ensure that the market has to have coolers for it. Surveys of the number of coolers in the market will us to decide the amount of SGAs (Sales Generating Assets) we have to invest in order to achieve the target.

NUMBER OF COKE COOLERS / NUMBER OF COKE OUTLETS * 100

Market share

This ratio gives us the information about the penetration level of our brand and its product in the current market, where similar kind of products are also available to the same target group or the target customer.

NUMBER OF KO COMPANY PRODUCTS / TOTAL VOLUME OF SIMILAR PRODS *100

Per capita consumption

It tells us about the consumption level in our region for e.g. Andhra Pradesh has PCC as 7

ANNUAL VOLUME IN UNIT CASES / POPULATION * 24

(24: TOTAL NUMBER OF BOTTLE IN A CASE IS 24)

If the PCC has gone down by the years it shows that the consumers have either shifted to other brand or product and the satisfaction level with our brand has gone down.

Historic data: CAGR

CAGR is the Compounded Annual Growth Rate. It tells us the growth we have achieved when we compare it to the performance of last year.

VPO: volume per outletVPO gives us the vertical growth. The objective of our strategy making should be to increase this VPO i.e. increasing the total volume at each outlet which will eventually add on to our target and sales.

ANNUAL VOLUME / NUMBER OF OUTLETS

PPO: People per outlet

While VPO shows us the sale performance, PPO is an important indicator of our services to our customers. Every strategy making should aim at decreasing PPO sp as to give better services to our customers.

POPULATION / NUMBER OF OUTLETS

V P O P P O

Activation:One of the key elements of our business. Better visibility means better response hence better sales. Proper activation is needed as per the market conditions .Use of various activation elements in our market gives has a wider scope to better our sales.

These activation elements are:

1. Flange

2. Rack.

3. Hangers.

4. Drinking shot.

5. Banners.

6. Posters.

7. Table top

8. Menu board.

9. Price Card.

10. Road Standee.

11. 3 Tier rack

12. Flex

13. Coolers

ROUTE RIDING AND INDICATORS

Route riding is one way by which one can check many aspects of his market , whether it is the penetration in the market or the salesmen and his effectiveness, during this period I found that route riding by ASM should be made compulsory once a week on every route .

Basically route riding means going with the vehicle on the route , to every shop and to every dealer by doing so you , one can know the ground reality , the requirements of the market and most importantly the doings of the competitors .

Effective routes:

For effective route riding the foremost thing to remember is to

-reduce the unproductive driving time.

-avoid unnecessary halts at dealers shop

-time should result in business.

-provide required frequency to outlets.

Key indicators:

Key indicators are important tools for making route evaluation. They are monitored constantly to see how well a route is doing. They are:

1. Ratios or percentages

2. Monitored all time

3. Compared to standard.

STANDARDS: a minimum level of performance which we expect to achieve in quantity, quality and value. Standards allow our supervisor to: Set clear performance guide Measure performance and consistency in outlet execution

We at coke take two standards

Local standards

Industry standards.

Recommended key indicators:

Completed calls: it is the number of calls made compared to the number of calls assigned. Recommended standards should be 100%

Number of completed calls / Number of scheduled calls * 100

Success rate: or in other word we can say these are the productive calls or the conversion rate. It is the number of calls generated compared to the number of calls assigned and this measures the performance of the salesmen. Recommended standard should be 80%-90%.

Number of calls with sales / number of scheduled calls * 100.

Case sold daily: It is the cases sold or delivered in a day. It is the best way to monitor sales and watch for trends. Recommended standards are more than 70 %.

Number of completed calls / number of scheduled calls * 100

Stock return rate: Number of full cases that return to the depot compared to the number of cases loaded. This ratio is an indicator of the efficiency of the salesmen. Stock return rate that is recommended is not more than 30 %.

Number of cases returned / number of cases loaded * 100

MARKET DEVELOPMENT

Developing the market is a continuous process that needed to be done through the year and all the time. As discussed earlier there can be two kind of development possible, one is vertical and the other is horizontal. As VPO and PPO i.e. Volume per outlet and People per outlet .Vertical development is done by VPO and the horizontal development is done through PPO.

To increase the VPO following things are needed to be done:

1. Adequate glass inventory: at least five times the days sale inventory should be maintained all the time by the dealer; this will ensure that even if the salesmen misses a call in peak season, there are adequate empties.

2. Adequate market coverage: one can decide the number of required visits which are needed as per the demand of the area. Plan it as per the assessment report.CASE DEPOSITCOMPETITORS ACTIVITY / FREQUENCYFREQUENCY

LOW(5days) HighEqual to competition

LOW(5days) lowLow

3. Vehicle support : choice of vehicle depends on :

-cases sold daily.

-seasonality.

-case deposit.

-competition frequency

-traffic regulation

-road conditions.

4. Trained salesmen

5. Merchandising: or ITMO i.e. In- trade merchandising opportunities basically a concept used to know and rate the merchandising performance of an outlet or a route individually on the basis of a certain defined set of parameters. Such as :

-cooler purity

-warm display

-inside display

-availability

6. Right mix of product: key parameters we availability is one of the key element in this business; we have to ensure that each brand should be made available to the consumer. So right mix of brands is needed.

7. Right SGA: SGA s is Sales Generating Assets (visicooler & fridges) types of cooler will be decided as per the sales given by the dealer annually. The size of the cooler in every outlet should be 1.5 to 2 times the amount of its peak daily sale.

8. Right price mix

For horizontal development we need to decrease the PPO, in order to do so we need to open new outlets . We need to see the potential of the shops.

VPO PPO

SALES PLANNING

A sales planning is the combination of the volume projection, the SGA plan, the promotion plan and the route plan for the year. This will help us making right strategy for our market. To make a sales plan, we need:

Historic data

Chilled availability

FMCG penetration

Per capita consumption

Market share

Population

Effect of promotion

PPO

VPO

For volume plan we need:

Glass inventory plan

Route plan

Effective time planning

Mapping

CONSUMER CONCERN HANDLING

A satisfied consumer means

Increased brand loyalty

Recommends us to colleagues , family and friends

Appreciates price/value importance

Tries out our new range of product/repeat purchase

Essential for the continuity of our business

Responding to consumer concerns

Take proactive action

Take immediate action

Identify underlying concerns

Take positive action to eliminate cause

Inform and educate the consumers through effective dialogue or other media

Report it immediately

Consumer concern dos

Apologize sincerely but without accepting blame

Be diplomatic and never loose your temper

Dont take the complaint personally

Be calm and composed

Listen carefully

Show a sincere interest in the caller

Know the facts about your products

Know about the hygiene measures in the manufacturing process

Do not refer to any other incident except this one

Confirm the solution to the consumer

Be punctual when you have to visit the consumer

Consumer concern donts

Blame the consumer

Bad mouth the competitors

Blame someone else

Be funny or make joke about the complaint

Interrupt the consumer while he is talking to you

Say words that do not match your tone

Use clinches

Take on a poor me, I only here attitude

Put on an I dont know attitude

FREQUENTLY ASKED QUESTIONS?

Can soft drinks be part of healthy diet?

Yes. Soft drinks contains water, so they can meet the bodys fluid requirements .In addition, the sugar provides quick energy.

What about sugar or calories?

The amount of sugar and calories in soft drinks is about the same as that in orange juice as and less than that in apple or in grapes juice.

Does sugar make kids hyperactive?

No. Studies show no association between sugar consumption and hyperactive behavior.

Are soft drinks bad for my teeth?

All common sugars contribute to the decaying of teeth. However, sugar in soft drinks has minimal effect on teeth because its in a liquid form. Comments like a tooth placed in a glass of coke will disappear are misleading.

Do soft drinks have a lot of caffeine?

No. Coca-Cola contains only 1\3rd the amount of caffeine found in the same amount of brewed coffee.

Is carbon dioxide harmful?

Carbon dioxide when added to water for carbonation, is not harmful upon ingestion.

What is Aspartame?

Aspartame is a low calorie sweetener made primarily of two amino acids, aspartic acid and phenylalanine. Is safety in KO products has been well established.

Is there a connection between soft drinks and bone?

No. Compared to other dietary sources of phosphorus like meat, cheese and nuts, soft drinks contribute only 2% of the total dietary phosphorus.

Does the acid in Coke damage teeth or bone?

No. There is a small amount of edible acid present in many foods, including fruit juices, and buttermilk. It does not harm your body.

Is there any relation between soft drinks and kidney stone?

Soft drinks do not cause kidney stones. In fact, they provide a pleasant and refreshing way to consume part of a your daily fluid requirement.

RED: RIGHT EXECUTION DAILYRED is the third party survey to ensure that the brand name is carried out by every dealer in the same dignity and pride. Brand name such as COKE carries with itself a great amount of respect and dignity and the same feeling should be transferred to our customers, RED is one aspect which is more important to us than the sale, it makes sure that the soul of company is same whether it is a grand shop in the mall or a small beedi shop in the outskirts of the city. Whether it is a dealer who buys 100 cases per day or a merchant who buys 1 case a day every body has to follow the rules and regulation laid under the RED. Visi cooler are the important part of this, we have to ensure that they are pure, price cards are placed and many other aspects which are covered under the RED has to be followed.

RED is done for three segment of the market, they are:

1. Diamond

2. Gold

3. Silver

RED is done on three parameters:

1. Visicooler

2. Availability

3. Activation

RED gives us a score out of 100 and we at COKE should strive to improve our score, better score means better we are in the above three parameters.

Below is the survey format on which each element is marked with some point.

VARIOUS MODELS USED AT COKE:

1. PITA MODEL

2. 4 As MODEL

3. SEGMENTATION OF THE MARKET.

PITA MODEL:

No. of consumers %of population amount in volume Amount of profit

in given universe. that buy product . bought per in value

transaction. per transaction.

= * * *

PITA model helps us to understand and makes it clear to the dealer why he should sell coke and its other brands. In other words we can say this model summarizes the profit story of the coke. We have to make the dealer believe that his market has the potential of making out good business.

We at coke must ensure that we make business partners rather just dealers who sell our brand on cash and carry business.

The model takes four parameters into account, they are :

1. Population.

2. Incidence.

3. Transaction.

4. Amount.

Population:

Here with population we mean the total population of the territory which we are targeting. All, total people living in that area is our population whether they are soft drink consumers or not. We must try to increase our visibility that will attract more customers to our territory; our aim is to increase this domain i.e to increase this population. And this is only possible through penetration and really good and effective activation of the area using various marketing elements.

Incidence:

Here we talk of those out of the population who are our customers and consumers, they are the most important element of our business and utmost care should be taken not just to satisfy them but also to retain them. Here brand and its image play the crucial part. Through out the period I found Coke holds a better image as a product than its competitors. Because dealers tend to remain with the company inspite of various options given to them by the competitors and the study in the two locations showed that ThumsUp had the strongest brand image and brand identity not only in the eyes of dealers but also the customers. We should make the dealer believe in the brand image and demand of our products.

Transaction:

Volume of transaction done by the dealer with us , it depends on the daily sale from his outlet in order to increase this we must support the dealer with various marketing elements so that visibility of the brand increases which will eventually help in sales .

Amount:

It is the profit per transaction that our dealer can make out per transaction. Making him believe that his investment is save and the returns are for the long run and our association with him will help us both , should be our methodology to explain this model.OUR MARKET CAN BE SEGMENTED ALONG THREE LINES OUTLETS VOLUME, LOCALITYS INCOME & CHANNEL CLUSTER CHANNEL CLUSTER

GROCERY

EATING AND DRINKING

CONVENIENCE

OUTLET

BRONZE SILVER GOLD DIAMONDVOLUME

LOW

MEDIUM

HIGH

LOCALITY INCOME

This model gives us the segmentation of the population what we had discussed in the PITA model. The segmentation is done on three parameters, these are ;1. Channel.

2. Outlet Volume.

3. Locality Income

CHANNEL: is the medium of distribution of our brands.

Grocery: Outlets primarily engaged in retailing of food & various household items. It includes grocers (outlets dealing mainly in grains, provisions, spices, edible oil, vanaspati etc) and general stores (outlets selling item of day-to-day requirements & stocking a variety of branded products)

E&D: Outlets selling items to eat which are being cooked within outlet, made at the outlet with possibility of consuming those products within the outlet. The outlet may have a place to sit .It include Bakery/ Mithai store /Restaurants / Bars / Juice corners / Soft Drinks Shop / Cafes etc.

Convenience: Includes outlets which are small stores or shops, generally accessible locally. These are often located alongside busy roads. It includes Chemists / STD booths / Pan Beedi shops etc.

OUTLET VOLUME: We classify our stores or our dealers onto four parameters as per the volume of sale given by them in the past year, below is the table which helps us to classify the outlets into diamonds, gold, silver, bronze.

OUTLET CLASSIFICATIONKO VPO SLABS

DIAMOND >800

GOLD500-799

SILVER200-499

BRONZE50%22

50%22

50%22

50%22

50%22

50%22