Académique Documents
Professionnel Documents
Culture Documents
EXECUTIVE SUMMARY
The Siliguri market has three distributors for Hindustan Coca Cola Beverages Pvt
Ltd and they are Aqua Sales, Gupta Enterprise and Roys Sales Agency. The project
undertaken by me covers Salugara and Bagdogra markets and the distributors of these
markets are Gupta Enterprise and Roy Sales Agency respectively. Since Salugara and
Bagdogra are under the vicinity of different distributors, therefore, this project also
provides the comparative study of these distributors based on Market Penetration of
Maaza Tetra Pak.
CHAPTER- I
INTRODUCTION
Three leading companies have prominent presence in the soft drink industry. The
leaders include the Coca-Cola Company, PepsiCo, and Cadbury Schweppes. According
to the Coca- Cola annul report; it has the most soft drink sales with $32 billion. The
Coca-Cola product line has several popular soft drinks including Coca-Cola, Diet Coke,
Fanta, Barqs, Sprite, Maaza etc selling over 400 drink brands in about 200 nations.
PepsiCo is the next top competitor with soft drink sales grossing $28 billion for the two
beverage subsidiaries, PepsiCo Beverages North America and PepsiCo International.
PepsiCos soft drink product line includes Pepsi, Mountain Dew, Miranda, Slice etc
which make up more than one quarter of its sales. Cadbury Schweppes, the third major
player had soft drink sales of $13 billion with a product line consisting of soft drinks such
as A&W Root Beer, Canada Dry, and Dr. Pepper.
replace hot beverages like coffee and tea that require some preparation with these cold,
iconic ready-to-drink brands.
Key factors for competitive success within the soft drink industry branch from the
trends of the macro environment. Primarily, constant product innovation is imperative. A
company must be able to recognize consumer wants and needs, while maintaining the
ability to adjust with the changing market. They must keep up with the changing trends.
Another key factor is the size of the organization, especially in terms of market
share. Large distributors have the ability to negotiate with stadiums, universities and
school systems, making them the exclusive supplier for a specified period of time.
Additionally, they have the ability to commit to mass purchases that significantly lower
their costs. They must implement effective distribution channels to remain competitive.
Taste of the product is also a key factor for success.
Furthermore, established brand loyalty is a large aspect of the soft drink industry.
Many consumers of carbonated beverages are extremely dedicated to a particular product,
and rarely purchase other varieties. This stresses the importance of developing and
maintaining a superior brand image.
Price, however, is also a key factor because consumers without a strong brand
preference will select the product with the most competitive price. Finally, global
expansion is a vital factor in the success of a company within the soft drink industry. The
United States has reached relative market saturation, requiring movement into the global
industry to maintain growth.
Variant Available
Soft drinks are available in glass bottles, aluminum cans and PET bottles for
home consumption. Fountains also dispense them in disposable containers. Non-
alcoholic soft drinks beverage market can be divided into carbonated and non carbonated
drinks. Cola, Lemon and Oranges are carbonated drinks while mango drinks come under
non carbonated category. The market can also be segmented on the basis of types of
products in the cola products and non-cola products. Cola products accounts for nearly
61-62% of the total soft drinks market. The brands that fall in this category are Pepsi,
Coca-Cola, Thumps Up, Diet Coke, Diet Pepsi etc Non Cola segment which constitutes
36% can be divided into four categories based on the types of flavors available namely:
Orange, Cloudy Lime, Clear Lime and Mango. . Robust time ahead for soft drinks Soft
drinks are expected to see robust volume growth over the forecast period. This will occur
despite a total volume and constant value decline for carbonates. Growth will be led by
bottled water and, from a smaller base and with slower growth, fruit/vegetable juice.
Health and convenience are predicted to be the two most important factors affecting
buying behavior, as carbonates and concentrates play second fiddle to healthier bottled
water and fruit/vegetable juice.
In fact, Coke and Pepsi have a third major rival on the bottled soft drink shelves,
namely Cadbury-Schweppes. The big three carbonated beverage makers now exist in a
stable oligopoly those changes only by small increments and which controls over 90% of
the market. Over the years, Cadbury-Schweppes (the result of a merger between a British
candy company and a British beverage company) has improved its position by acquiring
key brands in the US, namely Dr. Pepper and Seven Up, along with A & W and Canada
Dry. In 2001, however, Cadbury acquired moribund RC Cola, giving it a cola drink to
battle against the big guys. This gave the company more shelf position and immediately
gave the RC Cola brand, long a distant also-ran with weak marketing muscles, more sales
and market presence. Pepsi gave itself a small boost because of the popularity of newly
introduced Mountain Dew Code Red, a hyper-caffeinated soda. Coke's numbers declined
slightly. It's pretty indicative of this mature market that the only major move in market
share comes through a takeover. Moreover, the takeover targets that are left are so small
that the biggest remaining brand doesn't make more than 1% difference in total volume.
Product coverage
Market trends for the soft drink industry can be summarized by six fundamental themes:
With the bubbles making the difference, Coca-Cola was registered as a trademark
in 1887 and by 1895, was being sold in every state and territory in the United States. In
1899, it franchised its bottling operations in the U.S., growing quickly to reach 370
franchisees by 1910. Headquartered in Atlanta with divisions and local operations in over
200 countries worldwide, Coca-Cola generated more than 70% of its income outside the
United States by 2003
International expansion
Cokes first international bottling plants opened in 1906 in Canada, Cuba, and
Panama. By the end of the 1920s Coca-Cola was bottled in twenty-seven countries
throughout the world and available in fifty-one more. In spite of this reach, volume was
low, quality inconsistent, and effective advertising a challenge with language, culture, and
government regulation all serving as barriers. Former CEO Robert Woodruffs insistence
that Coca-Cola wouldnt suffer the stigma of being an intrusive American product, and
instead would use local bottles, caps, machinery, trucks, and personnel contributed to
Cokes challenges as well with a lack of standard processes and training degrading
quality. Coca-Cola continued working for over 80 years on Woodruffs goal: to make
Coke available wherever and whenever consumers wanted it, in arms reach of desire.
The Second World War proved to be the stimulus Coca-Cola needed to build effective
capabilities around the world and achieve dominant global market share. Woodruffs
patriotic commitment that every man in uniform gets a bottle of Coca-Cola for five
cents, wherever he is and at whatever cost to our company14 was more than just great
public relations. As a result of Cokes status as a military supplier, Coca-Cola was exempt
from sugar rationing and also received government subsidies to build bottling plants
around the world to serve WWII troops.
From the beginning, Coke understood the importance of branding and the creation
of a distinct personality. Its catchy, well-liked slogans (Its the real thing (1942, 1969),
Things go better with Coke (1963), Coke is it (1982), Cant beat the Feeling
(1987), and a 1992 return to Cant beat the real thing) linked that personality to the core
values of each generation and established Coke as the authentic, relevant, and trusted
refreshment of choice across the decades and around the globe.
We are a global business that operates on a local scale in every community where
we do business. We create global reach with local focus because of the strength of the
Coca-Cola system, which comprises our Company and our bottling partnersmore
than300 worldwide. Our Company manufactures and sells concentrates, beverage bases
and syrups to bottling operations; owns the brands; and is responsible for consumer brand
marketing initiatives. Our bottling partners manufacture, package, merchandise and
distribute the finished branded beverages to our customers and vending partners, who
then sell our products to consumers.
Our business operations are divided into the following geographies: Eurasia and
Africa, Europe, Latin America, North America and Pacific as well as our Bottling
Investments Group.
MISSION OF COCA-COLA
Create consumer products services and communications customers service and
bottling system strategy process and tools in order to create competitive advantage and
deliver superior value to-Consumers as a superior beverage experience.
Consumers as an opportunity to grow profit through the use of finished drinks.
Bottlers as an opportunity to make reasonable to grow profits and value added
Suppliers as an opportunity to make reasonable when creating real value added in
environment of system wide teamwork, flexible business system and continuous
improvement.
Indian society in form of contribution to economic and social development.
VISION OF COCA-COLA
VISION 2020
The world is changing all around us. To ensure our business will continue to
thrive over the next 10 years and beyond, we are looking ahead to understand the trends
and forces that will shape our industry in the future. Our 2020 Vision creates a long-term
destination for our business. It provides us with business goals that outline what we need
to accomplish with our global bottling partners in order to continue winning in the
marketplace and achieving sustainable, quality growth. For each goal, we have a set of
guiding principles and strategies for winning throughout the entire Coca-Cola system.
VALUE
Coca-Cola is guided by shared values that both the employees as individuals and
the Company will live by; the values being:
A British colony since 1769 when the East India Company gained control of all
European trade in the nation, India gained its independence in 1947 under Mahatma
Gandhi and his principles of non-violence and self-reliance. In the decades that followed,
self-reliance was taken to the extreme as many Indians believed that economic
independence was necessary to be truly independent. As a result, the economy was
increasingly regulated and many sectors were restricted to the public sector. This
movement reached its peak in 1977 when the Bhartiya Janta Party government came to
power and Coca-Cola was thrown out of the country. In 1991, the first generation of
economic reforms was introduced and liberalization began.
COKE IN INDIA
Coca-Cola was the leading soft drink brand in India until 1977 when it left rather
than reveals its formula to the government and reduces its equity stake as required under
the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign
companies in India. After a 16-year absence, Coca-Cola returned to India in 1993,
cementing its presence with a deal that gave Coca-Cola ownership of the nation's top
soft-drink brands and bottling network. Cokes acquisition of local popular Indian brands
including Thums Up (the most trusted brand in India), Limca, Maaza, Citra and Gold
Spot provided not only physical manufacturing, bottling, and distribution assets but also
strong consumer preference. This combination of local and global brands enabled Coca-
Cola to exploit the benefits of global branding and global trends in tastes while also
tapping into traditional domestic markets.
From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making
it one of the countrys top international investors. By 2003, Coca-Cola India had won the
prestigious Woodruff Cup from among 22 divisions of the Company based on three broad
parameters of volume, profitability, and quality. Coca-Cola India achieved 39% volume
growth in 2002 while the industry grew 23% nationally and the Company reached
breakeven profitability in the region for the first time. Encouraged by its 2002
performance, Coca-Cola India announced plans to double its capacity at an investment of
$125 million (Rs. 750 crore) between September 2002 and March 2003.
Coca-Cola India produced its beverages with 7,000 local employees at its twenty-
seven wholly-owned bottling operations supplemented by seventeen franchisee-owned
bottling operations and a network of twenty-nine contract-packers to manufacture a range
of products for the company. The complete manufacturing process had a documented
quality control and assurance program including over 400 tests performed throughout the
process.
success in developing a brand relevant to the Indian consumer and in tapping Indias vast
rural market potential. Following his marketing responsibilities, Gupta served as Head of
Operations for Company-owned bottling operations and then as Deputy President. Seen
as the driving force behind recent successful forays into packaged drinking water,
powdered drinks, and ready-to-serve tea and coffee, Gupta and his marketing prowess
were critical to the continued growth of the Company.
While the joint venture was only marginally successful in its own right, it allowed
Pepsi to gain precious early experience with the Indian market and also served as an
introduction of the Pepsi brand to the Indian consumer such that it was well-poised to
reap the benefits when liberalization came. Though Coke benefited from Pepsi creating
demand and developing the market, Pepsis head-start gave Coke a disadvantage in the
mind of the consumer. Pepsis appeal focused on youth and when Coke entered India in
1993 and approached the market selling an American way of life, it failed to resonate as
expected.
In an effort to make the price point of Coke within reach of this high-potential
market, Coca-Cola launched the Accessibility Campaign, introducing a new 200ml bottle,
smaller than the traditional 300ml bottle found in urban markets, and concurrently cutting
the price in half, to Rs. 5. This pricing strategy closed the gap between Coke and basic
refreshments like lemonade and tea, making soft drinks truly accessible for the first time.
At the same time, Coke invested in distribution infrastructure to effectively serve a
disbursed population and doubled the number of retail outlets in rural areas from 80,000
in 2001 to 160,000 in 2003, increasing market penetration from 13 to 25%. Cokes
advertising and promotion strategy pulled the marketing plan together using local
language and idiomatic expressions. Thanda, meaning cool/cold is also generic for cold
beverages and gave Thanda Matlab Coca-Cola delicious multiple meanings. Literally
translated to Coke means refreshment, the phrase directly addressed both the primary
need of this segment for cold refreshment while at the same time positioning Coke as a
Thanda or generic cold beverage just like tea, lassi, or lemonade. As a result of the
Thanda campaign, Coca-Cola won Advertiser of the Year and Campaign of the Year in
2003.
RURAL SUCCESS
Comprising 74% of the country's population, 41% of its middle class, and 58% of
its disposable income, the rural market was an attractive target and it delivered results.
Coke experienced 37% growth in 2003 in this segment versus the 24% growth seen in
urban areas.
Driven by the launch of the new Rs. 5 product, per capita consumption doubled
between 2001-2003. This market accounted for 80% of Indias new Coke drinkers, 30%
of 2002 volume, and was expected to account for 50% of the companys sales in 2003.
COBO stand for company owned bottling operations; COBO has been of Coke
Company's biggest strategy, which has proved to be winner. A bottling operation is a
capital intensive business, particularly so the returnable bottle market like in India and
the investment is the forth level.
Apart from the capital cost of plant and equipment the bottles has to invest in bottles
and crates, truck and cooling structure (Visi Coolers and ice boxes) at the retail point
industry estimates @ Rs. Crate which is equivalent to the price at which the crate
enters the distribution system Bottlers operates on margins around 10% with the bulk
of the killing (between Rs. 24 and Rs. 30 per crate or about 20%) being made by the
retailer. Excise and other taxes amounting Rs. 40 per crate. The going for a COBO is
the risk of coke Company and it is also implied a big attitude change from a totally
marketing orientation to an operation mindset.
COBO'S IN INDIA
COBOs are present across the nation, the locations are given below:
Mumbai, Bangalore, Ahemadabad, Chennai, Calcutta & Jalpaiguri unit also
FOBO
FOBO stand for franchise owned bottling operation, in India Pepsi has
franchise. In the case the company supplies its soft drink concentrate to its franchises
(bottle syrup). Coca-cola has taken a more capital - intensive route of the owning and
running its own plants along side those of its franchises.
Getting into FOBO has helped Coke Company on several fronts. First, it has
enabled Pepsi to focus on marketing operations as much as it has on operation fronts.
Another gain of going FOBO is that since the franchises have to invest in plants and
machines glass bottles, trucks, and infrastructure, the cost burden has been reduced.
FOBO IN INDIA:
FOBO are located at the following places:
Part of Delhi, Punjab, Part of Andhra Pradesh, Calcutta and South Bengal
ORGANISATIONAL CHART
ORGANISATIONAL STRUCTURE
The Coca-Cola Company and its products have been criticized by various sources
for various reasons including negative health effects resulting from consumption of its
products, exploitative labor practices, high levels of pesticides in its products, building
plants in Nazi Germany which employed slave labor, environmental destruction,
monopolistic business practices, hiring paramilitary units to murder trade union leaders,
and marketing unhealthy products to children.
Health effects
Acidity and tooth decay
Numerous court cases have been filed against the Coca-Cola Company since the
1940s alleging that the acidity of the drink is dangerous and it causes tooth decay.
Environmental issues
Pesticide use
In 2003, the Centre for Science and Environment (CSE), a non-governmental
organization in New Delhi, said aerated waters produced by soft drinks manufacturers in
India, including multinational giants Pepsico and Coca-Cola, contained toxins including
lindane, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer and
a breakdown of the immune system. Tested products included Coke, Pepsi, and several
other soft drinks (7Up, Mirinda, Fanta, Thums Up, Limca, Sprite), many produced by
The Coca-Cola Company.
Water use
Environmental degradation in the form of depletion of the local ground water
table due to the utilization of natural water resources by the company poses a serious
threat to many communities.
Coca-Cola's operations in India have come under intense scrutiny as many
communities are experiencing severe water shortages as well as contaminated
groundwater and soil that some assert are a result of Coca-Cola's bottling operations. A
massive movement has emerged across India to hold the Coca-Cola Company
accountable for its actions. The state of Kerala imposed a ban of colas from the state only
to be quashed by Coca Cola; the matter is pending in the Supreme Court. The Plachimada
plant in Kerala state, one of Coca-Cola's largest bottling facilities in India, has remained
shut for 17 months now because the village council has refused to renew its license,
blaming the company for causing water shortages and pollution.
In Sivaganga District of Tamil Nadu state there were several protests and rallies
opposing the proposed Coca Cola bottling plant in fear of water depletion and
contamination. The president of the Gangaikondan panchayat, Mr. V. Kamson died under
mysterious circumstances two days after going back and forth in his resentment against
the upcoming Coca-cola bottling plant in the village. When asked about the conflicting
statements, he said: "I am under immense pressure from the public, police and other
quarters. So I have issued this statement." Five other Indian states have announced partial
bans on the drinks in schools, colleges and hospitals.
Packaging
Packaging used in Coca-Cola's products has a significant environmental impact
but the company strongly opposes attempts to introduce mechanisms such as container
deposit legislation.
In June 2005, Coca-Cola in Europe formally agreed to end deals with shops and
bars to stock its drinks exclusively after a European Union investigation found its
business methods stifled competition.
Marketing
In 1993, US investigative journalist Mark Pendergrast published For God Country
and Coca Cola (ISBN 0465054684), an in-depth study of the marketing phenomenon
which had made Coca-Cola synonymous with US culture.
Employee issues
Racial discrimination
In November 2000, Coca-Cola agreed to pay $192.5 million to settle a class
action racial discrimination lawsuit and promised to change the way it manages,
promotes and treats minority employees in the US. In 2003, protesters at Coca-Cola's
annual meeting claimed that black people remained underrepresented in top management
at the company, were paid less than white employees and fired more often. In 2004, Luke
Visconti, a co-founder of Diversity Inc., which rates companies on their diversity efforts,
said: "Because of the settlement decree, Coca-Cola was forced to put in management
practices that have put the company in the top 10 for diversity."
There are four types of outlets according to the volume of sales of the
CHANNEL CLUSTER
COLOJ-K
COKE FANTA
KINLEY THUMS UP
SPRITE MAAZA
MMPO/MMNF
LIMCA
PRODUCT PORTFOLIO
COMPETITORS
The competitors to the products of the company mainly lie in the nonalcoholic
beverage industry consisting of juices and soft drinks.
The key competitors in the industry are as follows:
PepsiCo: The PepsiCo challenge, to keep up with arch rival, the Coca-Cola
Company never ends for the World's # 2, carbonated soft drink maker. The company's
soft drinks include Pepsi, Mountain Dew, Mirinda and Slice. Cola is not the company's
only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and
Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo
and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-
Cola and the rest belongs to Pepsi.
Nestl: Nestle does not give that tough a competition to Coca-Cola as it mainly deals
with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has
been introduced into the market by Nestle provides a considerable amount of competition
to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it
is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk
products also have become substitutes to the products of the company due to growing
health awareness among people.
Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever
since times and people have laid all their trust in the Company and the products of the
Company. Apart from food products, Dabur has introduced into the market Real Juice
which is packaged fresh fruit juice. These products give a strong competition to Maaza
and the latest product Minute Maid Pulpy Orange.
Parle Agro: Parle Agro is a household name in the beverages industry and has
leading brands like Frooti, consistent winner of India's fruit beverage brand, Appy, Appy
Fizz and packaged drinking water, Bailley.
A pioneer in the Indian industry, Parle Agro is associated with many firsts. They were the
first to introduce fruit drinks in tetra packaging, first to introduce apple nectar and the
first to introduce fruit drinks in PET bottles
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
LARGE DOMESTIC MARKETS: The domestic market for the products of the
Company is very high as compared to any other soft drink manufacturer. Coca-Cola India
claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of
the cola market. Other products account for 16 per cent market share, chiefly led by
Limca. The company appointed 50,000 new outlets in the first two months of this year, as
part of its plans to cover one lakh outlets for the coming summer season and this also
covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage
market.
EXPORT POTENTIAL: The Company can come up with new products which are not
manufactured abroad, like Maaza etc and export them to foreign nations. It can come up
with strategies to eliminate apprehension from the minds of the people towards the Coke
products produced in India so that there will be a considerable amount of exports and it is
yet another opportunity to broaden future prospects and cater to the global markets rather
than just domestic market.
HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead
to an increase in the per capita income thereby causing an increase in disposable income.
Unlike olden times, people now have the power of buying goods of their choice without
having to worry much about the flow of their income. The beverage industry can take
advantage of such a situation and enhance their sales.
THREATS
IMPORTS: As India is developing at a fast pace, the per capita income has increased
over the years and a majority of the people is educated, the export levels have gone high.
People understand trade to a large extent and the demand for foreign goods has increased
over the years. If consumers shift onto imported beverages rather than have beverages
manufactured within the country, it could pose a threat to the Indian beverage industry as
a whole in turn affecting the sales of the Company.
TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a
variety of regulations at each stage on the consequence from production to consumption.
When a license is issued, the production capacity is mentioned on the license and every
time the production capacity needs to be increased, the license poses a problem.
Renewing or updating a license every now and then is difficult. Therefore, this can limit
the growth of the Company and pose problems.
SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not
without its problems: Low per capita disposable incomes that is half the urban disposable
income; large number of daily wage earners, acute dependence on the vagaries of the
monsoon; seasonal consumption linked to harvests and festivals and special occasions;
poor roads; power problems; and inaccessibility to conventional advertising media. All
these problems might lead to a slowdown in the demand for the companys products.
PEST ANALYSIS
POLITICAL ANALYSIS
Non-alcoholic beverages fall within the food category under the FDA. The
government plays a role within the operation of manufacturing these products in terms of
regulations. There are potential fines set by the government on companies if they do not
meet a standard of laws.
The following are some of the factors that could cause Coca-Cola company's
actual results to differ materially from the expected results described in their underlying
company's forward statement:-
ECONOMIC ANALYSIS
Last year the U.S. economy was strong and nearly every part of it was growing
and doing well. However, things changed. Most economists loosely define a recession as
two consecutive quarters of contraction, or negative GDP growth. On Monday 26, the
government officially declared that the U.S. has been in recession since March. (CBS
Bharati Vidyapeeth Institute of Management and Research, New Delhi
37
Market Penetration of Maaza Tetra Pak (Salugara and Bagdogra)
Market Watch. U.S. Officially in a recession." Rex Nutting. [Nov 26, 2001].
www.cbsmarketwatch.com)
However, because of aggressive action by the Federal Reserve and Congress it will be
short and mild. The economy will return to sustained, positive growth in the first half of
2002.
SOCIAL ANALYSIS
Many U.S. citizens are practicing healthier lifestyles. This has affected the non-
alcoholic beverage industry in that many are switching to bottled water and diet colas
instead of beer and other alcoholic beverages. Also, time management has increased and
is at approximately 43% of all households. (http://www.cdf-mn.org). The need for bottled
water and other more convenient and healthy products are in important in the average
day-to-day life.
TECHNOLOGICAL ANALYSIS
Some factors that cause company's actual results to differ materially from the
expected results are as follows:
Introduction of cans and plastic bottles have increased sales for Coca-Cola as
these are easier to carry and you can bin them once they are used.
CHAPTER- II
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
SAMPLING:-
SAMPLING TECHNIQUE USED
In this project the technique of sampling used was Judgment sampling. Judgment
sampling involves the choice of subjects who are most advantageously placed or in the
best position to provide the information required.
SAMPLE UNIT
In this project sample were the retailers in Salugara and Bagdogra region & the
aim was to know the penetration level of Maaza Tetra Pak and the competitors present
in the market.
SAMPLE SIZE: 200 Retailers.
Salugara- 83 retailers and Badogra- 117 retailers
SOURCES OF DATA
PRIMARY DATA
To collect primary data from Retailers Questionnaires were used. Questionnaire
was prepared very carefully so that it may prove to be effective in collecting the right
information.
SECONDARY DATA
Secondary data collected from different website. This secondary data formed the
conceptual background for the project. This secondary data was compared with the
primary data collected in area.
RESEARCH INSTRUMENT
The research instrument used in the project was Questionnaire to collect primary
information, it provided flexibility by using more close ended and few open ended
questions.
METHOD OF DATA COLLECTION
Information was collected by personally contacting retailers through interviews.
ANALYSIS AND STATISTICAL TECHNIQUE USED
Types of data analysis techniques used in the project:
- Tabular analysis.
- Graphical analysis.
- Percentage analysis.
PRIMARY OBJECTIVE
To study the presence of Maaza Tetra Pak in Salugara and Bagdogra Market
SECONDARY OBJECTIVE
It gives information about the sales promotion activities to improve the sale.
Some of the retailers were too busy to participate for the survey.
The survey was limited only for two markets ( Salugara and Bagdogra)
Time period of the project was only 50 days which made it difficult to understand
the market completely.
CHAPTER- III
CONCEPTUAL
DISSCUSION
LITERATURE REVIEW
Business Review (1957). The matrix allows marketers to consider ways to grow the
business via existing and/or new products, in existing and/or new markets there are four
possible product/market combinations. This matrix helps companies decide what course
of action should be taken given current performance. The matrix consists of four
strategies:
The matrix illustrates, in particular, that the element of risk increases the further
the strategy moves away from known quantities - the existing product and the existing
market. Thus, product development (requiring, in effect, a new product) and market
extension (a new market) typically involve a greater risk than `penetration' (existing
product and existing market); and diversification (new product and new market)
generally carries the greatest risk of all. In his original work, which did not use the matrix
form, Igor Ansoff stressed that the diversification strategy stood apart from the other
three.
While the latter are usually followed with the same technical, financial, and
merchandising resources which are used for the original product line, diversification
usually requires new skills, new techniques, and new facilities. As a result it almost
invariably leads to physical and organizational changes in the structure of the business
which represent a distinct break with past business experience.
Maaza
Bharati Vidyapeeth Institute of Management and Research, New Delhi
47
Market Penetration of Maaza Tetra Pak (Salugara and Bagdogra)
Mango drinks currently account for 90% of the fruit juice market in India. Maaza
currently dominates the fruit drink category and competes with Pepsi's Slice brand of
mango drink and Frooti, manufactured by Parle Agro.
While Frooti was sold in small cartons, Maaza and Slice were initially sold in
returnable bottles. However, all brands are also now available in small cartons and large
PET bottles. Of late, the Indian market is witnessing the entry of a large number of small
manufacturers producing only mango fruit drink.
Maaza has a distinct pulpy taste as compared to Frooti and tastes slightly sweeter
than Slice. Maaza claims to contain mango pulp of the Alphonso which is known as
King of Mangoes in India and Totapuri variety.
HISTORY
Maaza was launched in 1976 in India. The Union Beverages Factory, based in the
United Arab Emirates, began selling Maaza as a franchisee in the Middle East and Africa
in 1976. By 1995, it had acquired rights to the Maaza brand in these countries through
Maaza International Co LLC Dubai. In India, Maaza was acquired by Coca-Cola India in
1993 from Parle-Bisleri along with other brands such as Limca, Citra, Thums Up and
Gold Spot. As for North America, Maaza was acquired by House of Spices in 2005.
STRENGTHS WEAKNESSESS
Maaza has good Brand Equity. Retailers are unaware of the margin
earned by selling Maaza TP.
Maaza TP can be preserved for longer
duration. Retailers dont find the price to be
reasonable.
Efficient distribution network readily
available. Promotional offers are weak or
negligible in comparison to its
competitors.
OPPORTUNITIES THREATS
CHAPTER- IV
DATA ANALYSIS
QUESTION 1
SALUGARA BAGDOGRA
INFERENCE:
There is huge market which is untapped for reasons ranging from competition,
irregular supply, high price etc. Maaza Tetra Pak is losing its market share to local
players and other companies due to availability of substitute products.
QUESTION 3
SALUGARA BAGDOGRA
INFERENCE:
QUESTION 4
SALUGARA
BAGDOGRA
INFERENCE:
From the charts we can figure out that most of the retailers in both the markets sell
1-10 cases of Maaza TP in a month and only a minuscule number of retailers go
beyond 10 cases.
QUESTION 5
SALUGARA
BAGDOGRA
INFERENCE:
Out of all the retailers who stock Maaza be it Salugara, Bagdogra or the
combination of both the markets it is seen that Maaza TP dominates the sale, as
Coca Cola is found to be a dominant player in these markets.
QUESTION 7
SALUGARA BAGDOGRA
INFERENCE:
On an average 72% of the retailers who stock Maaza TP in both the markets are
happy with their distributors. And the 28% of the remaining few are unhappy with
the distributor and the reasons range from irregular supply, absence of credit
facility with coke to issues with the coolers.
QUESTION 9
SALUGARA BAGDOGRA
INFERENCE:
From the following results it is evident that consumers and retailers are unaware of
the benefits of Tetra Pak. Some of the benefits are; it takes less shelf space, juice can
be preserved for longer duration, it is easy to carry, the Tetra Pak is environment
friendly as it can be recycled etc. When the benefits were told to the retailers they
gave a positive gesture, hence, little education by the MDs (Market Developers) can
help Maaza TP to tap the potential market.
QUESTION 10
SALUGARA BAGDOGRA
INFERENCE:
One of the major issues which restrain retailers to stock Maaza Tetra Pak is its
price. Maaza Tetra Pak comes with a price tag of Rs 12, which make the retailers as
well as the consumers to struggle in fending off the change. The retailers want
Maaza to come either in Rs 10 or Rs 15 packages.
QUESTION 11
SALUGARA BAGDOGRA
INFERENCE:
Maaza Tetra Pak is a hit among the consumers up to the age of 40. Maaza Tetra Pak
is marketed as pocket Maaza therefore consumers are found to be up to the age of
40 who travel and move a lot.
QUESTION 12
SALUGARA BAGDOGRA
INFERENCE:
It was difficult to find the gender which consumed Maaza Tetra Pak the most, many
retailers said that both the genders consumed Maaza Tetra Pak equally.
QUESTION 15
SALUGARA BAGDOGRA
INFERENCE:
The retailers were found to be unhappy as the schemes are not reaching them. The
retailers have often discovered that though Coca Cola has schemes, the MDs
(Market Developers) do not reveal the schemes to them.
CHAPTER- V
FINDINGS
FINDINGS
The survey revealed that Salugara has 55% of the retailers who stock Maaza,
while in Bagdogra 56% of the retailers stock Maaza. And combining both the
markets 55% of the retailers stock Maaza i.e. 111 retailers said Yes while 89
retailers said No
The 89 retailers forming 45% of the sample size do not stock Maaza for reasons
like they stock only Pepsis products, even if they sell Cokes product they are
unaware of the margin earned on selling TP and some of them do not stock Maaza
TP because it doesnt sell, and some do not stock Maaza because of its price
which makes it difficult for the customers and the retailers to fend change.
Most of the retailers in both the markets sell 1-10 cases of Maaza TP in a month
and only a minuscule number of retailers go beyond 10 cases.
Out of all the retailers who stock Maaza be it Salugara, Bagdogra or the
combination of both the markets it is seen that Maaza TP dominates the sale.
It was found that Maaza TP sells mostly because of its Taste, while the other
products sell either they give good offers or when there is irregular supply of
Maaza.
On an average 72% of the retailers who stock Maaza TP in both the markets are
happy with their distributors. And the 28% of the remaining few are unhappy with
the distributor and the reasons range from irregular supply, absence of credit
facility with coke to issues with the coolers.
It was noticed that majority of the retailers i.e. 109 retailers out of 111 who stock
Maaza TP arent aware of the benefits attached with selling Tetra Paks.
78% of the retailers in Salugara and 71% of the retailers in Bagdogra dont find
the price of Maaza TP to be reasonable. This makes it 74% combining both the
markets who do not find the price to be reasonable.
It was found that in Salugara the age group 20-40 consumes Maaza TP the most
followed by the age group Up to 20. Similarly, in Bagdogra the age group Up
to 20 is leading followed by 20-40 age group.
When both the markets are combined the leading group is 20-40 followed by
Up to 20. Looking at the charts we can conclude that Maaza TP is consumed
by people mostly up to the age of 40.
Combining both the markets 53% of the retailers are unsure whether Maaza is
consumed mostly by male or female, while the remaining lot has rated female
25% and male as 22% which is very close. Therefore, it can be said that Maaza
TP is equally preferred by both the genders.
All the retailers stocking Maaza TP has ranked Maaza as number 1 in both the
markets when it comes to getting offers for selling the product while all the other
products have a tough competition.
As it was seen earlier that Maaza leads when it comes to giving offers to its
retailers. Likewise the retailers ranked Maaza the number 1 product when it
comes to margin earned in selling the product.
It was found that the retailers were enjoying offers from other brands while they
were not getting any offers from Maaza in the previous month.
The retailers have rated the attributes (Quality, Brand Image, Availability,
Packaging and Margin) of Maaza. The three attributes i.e. Quality, Brand Image
and Packaging has favored well while the attributes Availability and Margin is to
be taken care of.
CHAPTER- VI
CONCLUSIONS
RECOMMENDATIONS
The survey shows that there is a Market of 45% combining both the Salugara and
Bagdogra Market which is untapped. The untapped market can be captured if the
Market Developers are persuasive in selling Maaza Tetra Pak and they can
proactively explain that the retailers earn more margins while selling Maaza Tetra
Pak. It was found that most of the retailers are unaware of the margin earned on
selling Tetra Pak which is more than selling RGB.
Retailers and Consumers should be educated about the benefits of using Tetra
Pak. The information that it can be preserved for long, Tetra Pak Packages are
fully recycled and consumers can easily carry it along, it takes less shelf space etc.
should be explained.
During the outlet visit for survey none of the stores had hoardings or banners with
Maaza Tetra Pak on it; therefore to create awareness among non-consumers that
Maaza comes in Tetra Pak too, hoardings and banners must bear the picture of
Maaza Tetra Pak.
Since Coca Cola maintains a database for its retailers, henceforth, all the schemes,
discounts, or offers can be sent through SMS to help retailers know the schemes.
Organizing sales promotion specifically designed for Maaza Tetra Pak can be
rolled. For instance, every year Coca Cola hires Summer Trainees and this
resource can be used to set up stalls in various locations and sell the product at a
price sold to retailers.
Incentives & schemes should be given to the retailers and sales audit should be
carried to check whether the schemes are being communicated properly by
distributors and sales person or not.
Provide consistent service to retailers as this will help gain company goodwill in
the market.
APPENDICES
QUESTIONNAIRE
YES NO
LESS MARGIN
3. Do you think that consumers are aware that Maaza also comes in Tetra Paks?
YES NO
4. Approximately, how many cases do you sell in a month (only Maaza TP)
1-10 10-20 20-30
30-40 40 AND ABOVE
YES NO
8. If No, why
NO CREDIT IRREGULAR SUPPLY OTHERS, PLEASE SPECIFY
YES NO
YES NO
11. Which among the following (age group) consumes Maaza TP the most?
13. Which juice (Tetra Pak) among the following gives good offers? Rank them
MAAZA SLICE FROOTI REAL TROPICANA
14. According to the margin earned rank the products (Tetra Pak)
15. Do you get any offers or schemes on Maaza Tetra Pak from the company?
YES NO
SALUGARA
118. Abodh Saha Salugara
BIBLIOGRAPHY
Books
Marketing Management -Philip Kotler, Published by Pearson Education, Seventh Indian
Reprint, 2005
Research Methods for Business Students- Mark Saunders, Philip Lewis, Adrian Thornhill
Websites
www.thecoca-colacompany.com
www.coca-colaindia.com
www.wikipedia.com
www.economictimes.com
www.agriculturalproductsindia.com
www.facebook.com