Retailers Satisfaction in COCA-COLA

INTRODUCTION The objective of the project is to know the retailers preferences for Cola Drinks, to a comparative study on rural and urban retailer satisfaction of COCA COLA and the report contains a brief introduction of Coca Cola. The company COCA COLA has interests in various sectors and they provide consistent quality products to meet our retailers and costumer’s requirement worldwide. This report clearly mentions objective of the study and the research methodology utilized. Both primary data and secondary data. The data collection method used is structured non disguised questionnaire in which the types of questions used are open ended, multiple choice and close ended. The report contains a detailed view of the tasks, which have been undertaken to analyze the market of COCA COLA. Various sets of questionnaire have been prepared to know the preference of retailers about the COCA COLA. Some of the research areas in Guntur district. This project reveals one of the important findings like more and more displays of the window hiring and can be given to the retail outlets to increase its consumption, more schemes like ‘Credit Schemes’ and other schemes can be given to the Retailers. A detailed survey of the retailers was carried to find out their preferences for COCA COLA. The details of the methodology are stated below. Areas are both rural and urban areas in Guntur district research design: Exploratory and descriptive. Sources of information are primary and secondary data. Data collection method structured designed by the questionnaire. 1

Types of questions used open ended, multiple choice and close ended. Sampling method is random sampling. In this study I found that most of the retailers prefer their 1st preference to COCA COLA.

1.1 NEED OF THE STUDY 2

Organization is made up of people and function to people without people organizations cannot exists. The resources by themselves cannot fulfill the objectives of organization. They need to be united into a team. The main need of the study is 

To define the

impact of retailers satisfaction at every place in the marketing management. 

To know how

retailers are succeeded in the business organization.  To know how the retailers time utilizing in the business organization. 

To know how

the process going on the retailers management in the Hindustan coca cola beverages private limited.

3

1.2 OBJECTIVES OF THE STUDY



To identify the various rural & urban retailer problems and offer solutions to those problems.



To study the retailer satisfaction towards various brands of the company.

 To study the views of the rural & urban retailers on various retailer schemes followed by the company.

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1.3 LIMITATIONS OF THE STUDY 1. Some of the respondents are refused to fill the questionnaires. 2. The responses may vary as some people did not want to come up with real answers. 3. Due to the lake of time period for the collecting data. 4.

The survey is conducted only in few areas of Guntur district rural and urban areas hence the results may vary in other parts of the Guntur city.

5.

Some of the retailers refused to give the information that’s why Taken very Small sample size.

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1.4 RESEARCH METHODOLOGY Data sources:

Primary Data: Data observed or collected directly from first-hand experience is called primary data. • Responses through questionnaires • Conducted personal interviews with the respondents.

Secondary Data: Published data and the data collected in the past or other parties are called secondary data. Secondary data is collected through the • Company Websites. • News papers. • Journals. • Textbooks.

Research Question: Retailers satisfaction on promotional schemes of the Coke Company.

Sampling types: Sampling technique: In this study the respondents sells through Convenience sampling.

Sample Size: Retailer’s samples are taken 110 samples only. Samplings Areas: The study is conducted in various rural & urban areas of Guntur district. 6

Research tools: • Chi square test • Friedman test In the study both the primary & secondary data source are used. The primary data is collected through closed questioners and some data collected from company website towards and text books are in the study. In the study used tools are chi-square; weighted average and percentage are used in data analysis.

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1.5. SIGNIFICANCE OF THE STUDY This study will be a significant endeavor in promoting good work environment in the workplace and motivations of its employees. This study will also be beneficial to the students and instructors in retail management, This study will be helpful to the retail industry and business practitioners in training and informing them in the area of marketing management, objectives, and strategies. It will also serve as a future reference for researchers on the subject of marketing and corporate companies. And importantly, this research will educate clients in deciding on whether an industry e.g. business industry is really fulfilling its responsibility to the community or is just showing off to promote its business.

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INDUSTRY PROFILE Soft drinks industry profile: The Soft Drinks in India industry profile is an essential resource for toplevel data and analysis covering the Soft Drinks industry. It includes detailed data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information.

Scope - Contains an executive summary and data on value, volume and/or segmentation - Provides textual analysis of the industry’s recent performance and future prospects - Incorporates in-depth five forces competitive environment analysis and scorecards - Includes a five-year forecast of the industry - The leading companies are profiled with supporting key financial metrics - Supported by the key macroeconomic and demographic data affecting the market

Highlights 9

- Detailed information is included on market size, measured by value and/or volume - Five forces scorecards provide an accessible yet in depth view of the market’s competitive - Market shares are covered by manufacturer or brand. - Spot future trends and developments - Inform your business decisions - Add weight to presentations and marketing materials - Save time carrying out entry-level research

soft drink

A

coke

or

(also referred to as

fizzy drink)

soda, pop, soda pop,

is a drink that typically contains no alcohol,

though may contain small amounts (typically less than 0.5% by volume) and is usually referred to as a sugary drink. Soft drinks are often carbonated and commonly consumed while chilled or at room temperature. Some of the most common soft drinks include cola, flavored water, sparkling water, iced tea, sweet tea, sparkling lemonade (or other lemon-lime soft drinks), squash, fruit punch, root beer, orange soda, grape soda, cream soda, and ginger ale. The term "soft" is employed in opposition to "hard", i.e. drinks with high alcoholic content by volume. Generally it is also implied that the drink does not contain milk or other dairy products. Hot chocolate, hot tea, coffee, tap water, juice, schorle or spritzer and milkshakes also do not fall into this classification.

History: Soft drinks trace their history back to the mineral waters found in natural springs. Ancient societies believed that bathing in natural springs and/or 10

drinking mineral waters could cure many diseases. Early scientists who studied mineral waters included Jābiribn Hayyān, Alkindus, Rhazes, Paracelsus, Robert Boyle, Friedrich Hoffmann, Antoine Laurent Lavoisier, Hermann Boerhaave, William Brownrigg, Gabriel F. Venel, Joseph Black, and David Macbride. The earliest soft drinks were sherbets developed by Arabic chemists and originally served in the medieval Near East. "Alkaline Substances", "A kind of Saltwort" from which soda is obtained, probably from Arabic suwwad, the name of a variety of saltwort exported from North Africa to Sicily in the Middle Ages, related to sawad "black," the color of the plant. These were juiced soft drinks made of crushed fruit, herbs, or flowers. From around 1265, a popular drink known as Dandelion & Burdock appeared in England, made from fermented dandelion (Taraxacum official) and burdock (Arctium lappa) roots, and is naturally carbonated.

Carbonated drinks In late 18th century, scientists made important progress in replicating naturally carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of infusing water with carbon dioxide to make carbonated water[6] when he suspended a bowl of distilled water above a beer vat at a local brewery in Leeds, England. His invention of carbonated water, (also known as soda water), is the major and defining component of most soft drinks. Priestley found water thus treated had a pleasant taste, and he offered it to friends as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating Water with Fixed Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now

11

called) onto chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into an agitated bowl of water.

Phosphate soda In the 1950s, a variant of soda in the United States called "Phosphate Soda" became popular with the most popular of them being the orange phosphate. The drink consists of 1 oz orange syrup, 1/2 teaspoon of phosphoric acid, and the rest being carbonated water in a glass filed with ice. This drink was commonly served in pharmacies.

Soda fountain pioneers Artificial mineral waters, usually called "soda water," and the soda fountain made the biggest splash in the United States. Beginning in 1806, Yale chemistry professor Benjamin Silliman sold soda waters in New Haven, Connecticut. He used a Nooth apparatus to produce his waters. Businessmen in Philadelphia and New York City also began selling soda water in the early 1800s. In the 1830s, John Matthews of New York City and John Lippincott of Philadelphia began manufacturing soda fountains. Both men were successful and built large factories for fabricating fountains.

Soda fountains vs. bottled sodas The drinking of either natural or artificial mineral water was considered a healthy practice. The American pharmacists selling mineral waters began to add herbs and chemicals to unflavored mineral water. They used birch bark (see birch beer), dandelion, sarsaparilla, fruit extracts, and other substances. Flavorings were also added to improve the taste. Pharmacies with soda fountains became a popular part of American culture. Many 12

Americans frequented the soda fountain on a daily basis. Due to problems in the U.S. glass industry, bottled drinks were a small portion of the market in the 19th century. (They were certainly known in England.

Soft drink bottling industry Over 1,500 U.S. patents were filed for a cork, cap, or lid for the carbonated drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are under great pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter, a Baltimore machine shop operator. It was the first very successful method of keeping the bubbles in the bottle.

Automatic production of glass bottles In 1899, the first patent was issued for a glass-blowing machine for the automatic production of glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-blowing machine was in operation. It was first operated by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few years, glass bottle production increased from 1,400 bottles a day to about 58,000 bottles a day.

Home-Packs and vending machines During the 1920s, the first "Home-Packs" were invented. "Home-Packs" are the familiar six-pack cartons made from cardboard. Automatic vending machines also began to appear in the 1920s.

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Soft drink production Soft drinks are made either by mixing dry ingredients and/or fresh ingredients (e.g. lemons, oranges, etc.) with water. Production of soft drinks can be done at factories, or at home. Soft drinks can be made at home by mixing either syrup or dry ingredients with carbonated water. Carbonated water is made using a home carbonation system or by dropping dry ice into water. Syrups are commercially sold by companies such as Soda-Club.

Ingredient quality Of most importance is that the ingredient meets the agreed specification on all major parameters. This is not only the functional parameter, i.e. the level of the major constituent, but the level of impurities, the microbiological status and physical parameters such as color, particle size.

Soft drink packaging: Research suggests a statistically significant inverse relationship between consumption of carbonated beverages and bone mineral density in young girls, which places them at increased risk of suffering fractures in the future. One hypothesis to explain this relationship is that the phosphoric acid contained in some soft drinks (colas) displaces calcium from the bones, lowering bone density of the skeleton and leading to weakened bones, or osteoporosis. However, calcium metabolism studies by Dr. Robert Heaney suggested that the net effect of carbonated soft drinks, (including colas, which use phosphoric acid as the acid lent) on calcium excretion in urine was negligible.

14

Nutritional value Unless fortified, they also contain little to no vitamins, minerals, fiber, protein, or other essential nutrients. Soft drinks may also displace other healthier choices in people's diets, such as water, milk, fruit juice, and vegetable juice.

Sugar content While the USDA recommended dietary allowance (RDA) of added sugars is less than 10 teaspoons per day for a 2,000-calorie diet, many soft drinks contain more than this amount. High caloric intake contributes to obesity if not balanced with exercise, with a large amount of exercise being required to offset even small but calorie-rich food and drinks. Until 1985, most of the calories in soft drinks came from sugar or corn syrup. As of 2010, in the United States high-fructose corn syrup (HFCS) is used nearly exclusively as a sweetener because of its lower cost while in Europe, sucrose dominates, because EU agricultural policies favor production of sugar beets in Europe proper and sugarcane in the former colonies over the production of corn.

Government regulation In recent years, debate on whether high-calorie soft drink vending machines should be allowed in schools has been on the rise. Opponents of the (soft drink) machines believe that soft drinks are a significant contributor to childhood obesity and tooth decay, and that allowing soft drink sales in schools encourages children to believe they are safe to consume in moderate to large quantities. Opponents note that children are not always mature enough to understand the consequences of their own food choices and should not be routinely exposed to the temptation of readily available soft drinks. They also argue that schools have a 15

responsibility to look after the health of the children in their care, and that allowing children easy access to soft drinks violates that responsibility. Vending machine proponents believe that obesity is a complex issue and soft drinks are not the only cause. They also note the immense amount of funding soft drink sales bring to schools.

Taxation In the United States and elsewhere, legislators, health experts and consumer advocates are considering levying higher taxes on the sale of soft drinks and other sweetened beverages to help curb the epidemic of obesity among Americans, and its harmful impact on overall health. Higher taxes could help reduce soda consumption. Taxes could also fund education to increase consumer awareness of the unhealthy effects of excessive soft drink consumption, and also help cover costs of caring for conditions resulting from overconsumption.

Pesticides in India In 2003, the Delhi non-profit Centre for Science and Environment published a disputed report finding pesticide levels in Coke and Pepsi soft drinks sold in India at levels 30 times that considered safe by the European Economic Commission. The Indian Health Minister said the CSE tests were inaccurate, and said that the government's tests found pesticide levels within India's standards but above EU standards. A similar CSE report in August 2006 prompted many state governments have issued a ban of the sale of soft drinks in schools. Kerala issued a complete ban on the sale or manufacture of soft drinks altogether. (These were later struck down in court.) In return, the soft

16

drink companies like Coca Cola and Pepsi have issued ads in the media regarding the safety of consumption of the drinks.

The UK-based Central Science Laboratory, commissioned by Coke, found its products met EU standards in 2006. Coke and the University of Michigan commissioned an independent study of its bottling plants by The Energy and Resources Institute (TERI), which reported in 2008 no unsafe chemicals in the water supply used.

Benzene In 2006, the United Kingdom Food Standards Agency published the results of its survey of benzene levels in soft drinks, which tested 150 products and found that four contained benzene levels above the World Health Organization (WHO) guidelines for drinking water. The agency asked for these to be removed from sale.

17

COMPANY PROFILE Coca-Cola (also known as Coke, a name that was trademarked by The Coca-Cola Company after it was discovered many people called it by that particular name) is a very popular cola (a carbonated soft drink) sold in stores, restaurants and vending machines in more than 200 countries. It is produced by the Coca-Cola Company (NYSE: KO), which is also often referred to as simply Coca-Cola or Coke. Coke is one of the world’s most recognizable and widely sold commercial brands; its major rival is Pepsi. Coke was originally intended as a patent medicine when it was invented in the late 19th century, Coca-Cola was bought out by businessman Asia Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century. Although faced with critiques of its health effects and various allegations of wrongdoing by the company, Coca-Cola has remained a popular soft drink to the present day It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time thanks to a belief that carbonated water was good for the health. The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight months only nine drinks were sold each day. Coca-Cola was sold in bottles for the first time on March 12, 1894, and cans of Coke first appeared in 1955. By 1888, three versions of Coca-Cola - sold by three separate businesses were on the market.

18

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned a launch of a Diet Coke product sweetened with the artificial sweetener sucra lose ("Splenda"), the same sweetener currently used in Pepsi One. The company actually produces concentrate for Coca-Cola, which is then sold to various Coca-Cola bottlers throughout the world. The bottlers, who hold territorially-exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke brand name. The most famous of these is Diet Coke, which has become a major diet cola but others exist, such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola Company owns and markets other soft drinks that do not carry the Coca-Cola branding, such as Sprite, Fanta, and others. The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and fill it into cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The bottlers are normally also responsible for all advertisement and other sales initiatives within their areas. 19

On the distribution front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian cities, ensure availability of our brands in every nook and corner of the country. The term soft drink originally applied to carbonated drinks made from concentrates, although it now commonly refers to almost any cold drink that does not contain alcohol.

Hindustan Coca-Cola Beverages Private Limited

is

an Indian subsidiary of the US based Coca-Cola Company. The company-owned Bottling arm of the Indian Operations, Hindustan CocaCola Beverages Private Limited is responsible for the manufacture, sale and distribution of beverages across the country. Coca-Cola India is among the country’s top international investors, having invested more than US$ 1 billion in India within a decade of its presence and further pledged another US$ 100 million in 2003 for its operations. It is the world’s largest selling soft drink since 1886. The Coca-Cola Company returned to India in 1993 after a gap of 16 years giving new Thums up to the Indian Soft Drink Market and took over the ownership of the nation's top soft-drink brands and bottling network.

GENERATIONS IN COCA COLA 1886-1892 Atlanta beginning It was 1886, and in New York Harbor, workers were constructing the Statue of Liberty. Eight hundred miles away, another great American symbol was about to be unveiled. Like many people who change history, John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. 20

One afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy. Here, the mixture was combined with carbonated water and sampled by customers who all agreed -- this new drink was something special. So Jacobs' Pharmacy put it on sale for five cents a glass. Unfortunately for Pemberton, he died in 1888 without realizing the success of the beverage he had created. Over the course of three years, 1888-1891, Atlanta businessman Asia Griggs Candler secured rights to the business for a total of about $2,300. Candler would become the Company's first president, and the first to bring real vision to the business and the brand.

1893-1904 Beyond Atlanta Coca cola hires first celebrity spoke person music hall performer Hilda Clark Asia G. Candler, a natural born salesman, transformed Coca-Cola from an invention into a business. He knew there were thirsty people out there, and Candler found brilliant and innovative ways to introduce them to this exciting new refreshment. He gave away coupons for complimentary first tastes of Coca-Cola, and outfitted distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola brand. People saw Coca-Cola everywhere, and the aggressive promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.

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1905-1918 Safeguarding the brand Coca cola enjoyed in 8 countries worldwide. To combat copycats coca cola develops unique bottle Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none too pleased about the proliferation of copycat beverages taking advantage of its success. This was a great product, and a great brand. Both needed to be protected. Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand the genuine" and "Accept no substitute." The Company also decided to create a distinctive bottle shape to assure people they were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute, Indiana, won a contest to design a bottle that could be recognized in the dark. In 1916, they began manufacturing the famous contour bottle. The contour bottle, which remains the signature shape of Coca-Cola today, was chosen for its attractive appearance, original design and the fact that, even in the dark, you could identify the genuine article. As the country roared into the new century, The Coca-Cola Company grew rapidly, moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and U.S. territories. In 1900, there were two bottlers of Coca-Cola; by 1920, there would be about 1,000.

1919-1940 The woodruff legacy Coca cola enjoyed in 53 countries worldwide. It introduced 6 packs. In 1925 6000000 drinks per day. Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff. In 1923, four years after his father Ernest purchased the Company from Asia Candler, Woodruff became the Company president. While Candler had introduced 22

the U.S. to Coca-Cola, Woodruff would spend more than 60 years as Company leader introducing the beverage to the world beyond. Woodruff was a marketing genius who saw opportunities for expansion everywhere.

1941-1959 The war and its legacy Coca cola enjoyed in 120 countries worldwide. Introducing Coke. In 1961 Sprite is introduced. 1963 Tab Company’s first diet soft drink is introduced in 1941, America entered World War II. Thousands of men and women were sent overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that "every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it costs the Company." In 1943, General Dwight D. Eisenhower sent an urgent cablegram to Coca-Cola, requesting shipment of materials for 10 bottling plants. During the war, many people enjoyed their first taste of the beverage, and when peace finally came, the foundations were laid for Coca-Cola to do business overseas. Woodruff’s vision that Coca-Cola be placed within "arm's reach of desire," was coming true -- from the mid-1940s until 1960, the number of countries with bottling operations nearly doubled. Post-war America was alive with optimism and prosperity. Coca-Cola was part of a fun, carefree American lifestyle, and his imagery of its advertising -- happy couples at the drive-in, carefree moms driving big yellow convertibles -reflected the spirit of the times.

1960-1981 23

A world of customers Coca cola enjoyed in 163 countries worldwide. It introduced can in 1960. In 1981 Roberto c. Goizueta became chairman and CEO of the coca cola company After 70 years of success with one brand, Coca-Cola®, the Company decided to expand with new flavors: Fanta®, originally developed in the 1940s and introduced in the 1950s; Sprite® followed in 1961, with TAB® in 1963 and Fresca® in 1966. In 1960, The Coca-Cola Company acquired The Minute Maid Company, adding an entirely new line of business -- juices -- to the Company.

1982-1989 Diet coke and new coke Coca cola enjoyed in 165 countries worldwide. In 1982 diet coke is introduced. The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the Company with a strategy he called "intelligent risk taking." Among his bold moves was organizing the numerous U.S. bottling operations into a new public company, Coca-Cola Enterprises Inc. He also led the introduction of diet Coke®, the very first extension of the Coca-Cola trademark; within two years, it had become the top low-calorie drink in the world, second in success only to Coca-Cola. 1990-1999

New markets and brands 24

In 1993 pet bottles are introduced. Coca cola enjoyed in 200 countries worldwide. The 1990s were a time of continued growth for The Coca-Cola Company. The Company's long association with sports was strengthened during this decade, with ongoing support of the Olympic Games, FIFA World Cup™ football (soccer), Rugby World Cup and the National Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR racing, connecting the brand with one of the world's fastest growing and most popular spectator sports.

And 1993 saw the

introduction of the popular "Always Coca-Cola" advertising campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. New markets opened up as Coca-Cola products were sold in East Germany in 1990 and returned to India in 1993. New beverages joined the Company's line-up, including PowerAde® sports drink, Qoo® children's fruit drink and Dasani bottled water.

Coca cola now In 1886, Coca-Cola® brought refreshment to patrons of a small Atlanta pharmacy. Now well into its second century, the Company's goal is to provide magic every time someone drinks one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you can still find Coca-Cola. Coca-Cola is committed to local markets, paying attention to what people from different cultures and backgrounds like to drink, and where and how they want to drink it. With its bottling partners, the Company reaches out to the local communities it serves, believing that Coca-Cola exists to benefit and refresh everyone it touches. 25

COMPETITOR ANALYSIS Indian soft drinks market is predominantly controlled by two major multinationals namely Coca- Cola and Pepsi, which have carefully stifled out the local competition here in India. Penetrating tough Indian psychology and making their products feel accepted was the toughest challenge in front of them. A brief overview of the soft drinks giant biggest competitor will help in gaining a better insight of the soft drinks market in totality.

CURRENT MARKET POSITION There has been much controversy and debate on the market share standings between the two companies in the Indian subcontinent and a substantial and a consolidated figure has been unavailable for reference. This is mainly because both companies had approached different market research companies for making a study about the market share standings. Pepsi Co had approached IMRB while Coca- Cola had entrusted this responsibility on ORG. According to the survey done by IMRB Pepsi’s market share was found to have increased from 47% to 49% while according to the study conducted by ORG Coca- Colas market share was claimed to be 59%.

FACTORS AFFECTING BUSINESS •

Seasonality:

Seasonality is one of the most important factors

that affect the soft drink business. Seasonality is primarily influenced either by the weather, or by holidays and religious 26

festivals. Within the Group, soft drink business has different seasonal cycles throughout the year. •

Service frequency:

This is another factor that affects the

business. Service frequency is the time gap between visiting a particular outlet again. Service frequency directly affects the rotation time which in turn affects the value of business. •

Demand pattern for the market:

Every product has a

different demand pattern and affects the business. •

Price of the product: Price of the soft drinks also affects the business. Due to perfect competition in soft drink market, price of a product plays a major role in business.

•

Disposable Income:

Disposable Income of the consumers

also affects the business of the soft drink players. A high disposable income of the consumers ensures a high demand for the products in the market.

•

Demographic Profile: Demographic profile of consumer also affects the business and needs to be considered.

•

Competitor’s Policy:

The policies of the competitors also

affect the working of the business of other companies.

Hindustan Coca Cola, Guntur - Presentation Transcript CII Water Management Award -2008 beyond the Fence Hindustan CocaCola Beverages Private Limited Athmakuru, Guntur, Andhra Pradesh. 27

Company Profile Coca‐Cola has the highest brand value with an ThumsUp is the #1 Colaes timated $66 billion in 2008 • Invested more than US$1 Billion in India •

Fanta is the Orange

•

Employs over 6,500 people directly in India E l 6 500 l ditailiIdi

• Provides indirect employment to more than •

Sprite is the Clear Lime 1,50,000 people indirectly

• Labor Intensive distribution network which has

Labor

Intensive distribution network which has • Limca

is

the

Cloudy

Lemon

is the Cloudy Lemon

multiplier effect on employment & earning opportunities • Impact Agriculture by procuring Sugar, Coffee, • Maaza is the Juice Drink Mango and Orange. Mango and Orange • Positive impact on industries like Glass, Plastics, • Kinleyis the Retail Water • Resin, Sugar Processing, Automobiles etc.

Coca Cola Athmakur Operations Located in Guntur District, 20 KmfromthePlant is spread in a 40 acre area Vijayawada city and 25 Km from Guntursurrounded by lush green paddy fields.CityTwo production li nes of 600 bottles per minute capacity The Plant became and one Swing Line of 110 operational in 1999. bottles per minute capacity bottles per minutecapacityLocation of the Plantprovides direct The Plant services ab out 12 million people in 3 employmentto about 250 employmenttoabout2 28

50districts of Andhra Pradesh Krishna, Gunturand people, including 30 P rakasham through 171 distributors and 40000 physically challenged.outle ts supported by 350 vehicles. The Way we manufacture Beverage Raw Water Treatment CARBON FILTER SAND FILTER CLARIFIER Sand Filter Carbon FilterReverseOsmosisConventional Chemical coagulationUV filterLead Lag Activated 1µ Filter

3 µ Filter5 µ Filter

Carbon

Filters

Syrup

Preparation Syrup Preparation Beverage

Filling Beverage Filling

Inspection

&

at

Prewash,

Post

wash

Filled

Glass Bottle

Beverage preparation.

Planet: Three Destinations Tree plantations Environment Focus Water Steward ship Sustainable water resources management Sustainable water resources management Protect water sheds Conserve Increase access to clean drinking water Sustainable Packaging Sustainable Packaging Sustainable Cleaner Leaders’ cling

programs Packaging Energy

Implement new packaging practices Energy Saving Initiatives 3 E SiIititi Water Conservation Project I Mangalagiri Court Complex Rainwater Harvesting Project. The Court Complexes 25 km from Guntur city Located 6 km from the Coca- Cola Plant Mangalagiri Court Complex is with a huge RCC roof Rain Water from the roof and from the ground has area of over one acre. been going waste Though Mangalgiri is a water surplus location, the Local ground water table has been going down area around the court complex has been facing year after year and bore well yields drastically water shortage during summer months. Dropped in the last few years before the project. 29

Water Conservation Project - I Mangalagiri Court Complex Rain Water Harvesting Project Water collection recharge system One acre roof top area of the Court Complex Recharge pits for 2000 KL/yr recharge Planning & Execution Roof top collection & recharge system Ground water augmentation – recharging just near the bore well Proper draining systems from rooftop Gradient channels and piping for complete run- off of water to recharge pits Community Involvement & partnership Court Office and Magistrate’s office Lawyers Association Local Gram Panchayati Residents Association around the Court A few local NGOs around the area Sustainability & Community Empowerment System to maintain the structure annually y y Ownership is transferred to the court administration. • Gram panchayati agrees to get all necessary clearances for the project implementation Partnerships • Nidukummala Village Committee (People) • Nidumukkala Gram Panchayat (People) • Thadikonda Mandal Praja Parishad (People) • Andhra Pradesh Ground Water Dept (Govt) • Andhra Pradesh Irrigation Department (Govt)

Water Conservation Project-II Restoration of Water Bodies, Nidumukkala Environmental Impact. • Quality and quantity of the water for drinking and Q y q y g domestic purpose is improved. • Increased the storage capacity of ponds due to desalting

activity

and strength of tank bunds. • Availability of water for agricultural purposes is increased 30

• Erosion of fertile soil from the area is prevented Social Impact • Quality time is available to families since water availability in the ir wells is better. • Agriculture income is expected to increase due to Agriculture income is expected to increase due to better water availability • Livestock income is expected to go up due to better water availab ility. Water Conservation Project - II Restoration of Water Bodies, Nidumukkala Project Sustainability The local community has contributed One-third of the cost by way of man and machinery and has vowed to maintain the project in the long term The Company is committed to maintain the project free of cost for three years The Gram Panchayat and Mandal Panchayat have agreed y g to undertake periodic repairs Community Empowerment Village Committee has been empowered to execute the project with the local NGO Nilagiri Foundation From planning to execution, the village committee was at the helm of activities. The project led to increased agricultural and livestock income, income besides better water availability Gender Sensitivity Womenfolk are relieved because their time spent for fetching water can now be used more productively. Better agriculture income led to better household income for the families.

Water Conservation Project - III Connecting restored water bodies to NS Canal g Community Involvement

31

1. 1 Need Assessment done by the Company with village community and Gram Panchayati 2. Project idea was mooted by the community 3. Community shared the cost and pooled in with men and machinery 4. Gram panchayati ensured necessary clearances Partnerships 2.1. Nidukummala Village Committee 2. Nidumukkala Gram Panchayati 3. Thadikonda Mandalam Praja Parishadd 4. Andhra Pradesh Ground Water Dept 5. Andhra Pradesh Irrigation Department

Water Conservation Project –III Connecting restored water bodies to NSC analog Social Impact Environmental Impact Farming

lands are

receiving more water during. •

Income from agriculture is expected to go up from the current seaso

n. •

Increased water availability is increasing the greenery in the village, beside

s the farming

ORGANIGATION STRUCTURE

32

THEORETICAL FRAMEWORK Marketing Marketing is the planning and execution of the production, pricing, promotion and distribution of goods and services to create exchanges that achieve individual and business objectives. Put simply, marketing is about matching every part of your business with your customers so that: • You meet their needs. • They are aware that you meet their needs. • They are motivated to buy from you. • They are motivated to keep buying from you.

33

If you don’t achieve these outcomes, customers won’t buy from you and you will go out of business. It won’t matter if you make the best product in the world or if you are very good at bookkeeping and administration poor marketers go out of business.

Sell the Benefits Customers won’t buy from you if they can’t receive benefits from doing so. Customers always ask: “what’s in it for me?” when deciding whether to buy. For example, when a customer buys an 8mmdrill bit, they are not really interested in buying just a drill bit. More importantly, they are interested in buying the ability to drill 8mm holes. Customers are also interested in buying different levels of quality, capability (e.g. some drill bits can only drill timber whereas some can drill bricks and concrete) and price. When producing goods or services, make sure that you provide customers with more benefits than your competitors. When pricing, make sure that customers are getting good value (in view of the Benefits and the price) and you are making a good profit.

Items to consider • Advertising. • Product range and mix of products. • Price points. • How products and services are sourced. • Website. • Brochure. • Promotions. • Events. 34

The Marketing Process 1.

Research your Market Environment

2.

Develop and Implement your Marketing Plan

3.

Review and Improve

1. Research your Market Environment Research your industry and your competitors and establish who your target customers (or target market) are for your goods or services. Only once you know: • Who your customers are, what their needs are and how much they are prepared to pay. • Who your competitors are what they sell and at what price/s. …can you decide how to position your goods or services in your target market/s and develop a Marketing plan to achieve your goals?

2. Develop and Implement your Marketing Plan Marketing covers much more than just advertising goods or services. When developing your Marketing Plan, consider how you will use the elements of your marketing mix to attract customers, meet their needs and keep them coming back for more. The elements of the Marketing Mix are the four Ps: Product, Price, Promotion, Place (distribution) Product To your customer, your product is all of the features, advantages and benefits that they can enjoy from buying your goods or services (like the previous example about buying an 8mm drill bit). Your Product is not only the goods or services that your business offers but also includes the people within your business and the service they give the packaging of 35

the product or service, and the processes that you have to make buying easier and more enjoyable. The product element is the customer’s entire experience of dealing with your business from the Quality of customer service that you give to the image, environment and facilities of your business premises.

Price Price relates to your pricing strategy which includes the setting of prices for your products or services. Pricing should take into consideration how much the market is prepared to pay (market demand pricing) and markups that are needed to cater for overheads, other costs and profit margins. The provision of credit to customers, the costs of credit and volume discounting are also aspects of pricing.

Promotion Promotion relates to how you make your customers aware of your goods or services and the benefits that they can receive by buying them. Promotional activities include:

Advertising

- where you pay for your message to be sent to your target customers through newspaper, radio, television, magazine, outdoor signage, web sites and telephone directories.

Publicity

comes from sending media releases to print and broadcasting media, giving interviews to the media and from favorable word of mouth. From these activities, information reaches your target customers through articles that are published in newspapers, magazines and television shows at no charge.

Sales Promotions

are short-term non-routine incentives that a business offers to encourage purchase of products or services which include coupons, competitions and contests. 36

Personal Selling is the use of personal presentations and meetings to sell goods or services. Effective personal selling requires the use of good interpersonal and communication skills, excellent product/service knowledge and the ability to sell the benefits of the goods or services to the prospective customer. • Direct Marketing includes sending letters, emails, pamphlets and brochures to individual target customers. Often followed by personal selling or tale marketing, direct marketing activities. 3. Review

and Improve

After you have implemented your marketing plan, determine how well it has increased your sales and profits (review) and make any necessary improvements (improve). If your marketing plan is written down, it will be easier for you to see how your plan has performed and where improvements can be made. Where possible, establish goals and benchmarks so that you can identify more clearly how well your plan has worked and where improvements are necessary.

Distribution: Commerce: Movement of goods and services from the source through the distribution channel, right up to the final customer, consumer, or user and the movement of payment in the opposite direction, right up to the original producer or supplier.

Physical distribution (or place) is one of the four elements of the marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user. The other three parts of the marketing mix are product, pricing, and promotion.

37

The distribution channel Chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user.... This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the allimportant end-user.

Channels A number of alternate 'channels' of distribution may be available: •

Distributor, who sells to retailers,

•

Retailer

(also called dealer or reseller), who sells to end

customers 38

•

Advertisement typically used for consumption goods Distribution

channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. If we mention in a single sentence the distribution channel is nothing but it is a process of transfer the products or services from Producer to Customer or end user. There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas.

Channel decisions • • • • • •

Channel strategy Gravity & Gravity Push and Pull strategy Product (or service) Cost Consumer location

Managerial concerns The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods 39

manufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished.

Channel membership •

Channel motivation

•

Monitoring and managing channels

Channel motivation It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or compensation is offered to the distributors' sales personnel, so that they are tempted to push the product. Dent defines this incentive as a Channel Value Proposition or business case, with which the supplier sells the channel member on the commercial merits of doing business together. He describes this as selling business models not products.

Monitoring and managing channels In much the same way that the organization's own sales and distribution activities need to be monitored and managed, so will those of the distribution chain. In practice, many organizations use a mix of different channels; in particular, they may complement a direct sales force, calling on the larger accounts, with agents, covering the smaller customers and prospects. These channels show marketing strategies of an organization.

40

Effective management of distribution channel requires making and implementing decision in these areas.

Retailing: Definition:

One who sells goods or commodities directly to

consumers? These items are purchased from the manufacturer or wholesaler and sold to the end user at a marked up price.

Also Known As: Merchant Independent Retailer: An independent retailer is one who builds his/her business from the ground up. From the business planning stage to opening day, the independent retail owner does it all. He/she may hire consultants, staff and others to assist in the business endeavor. The opportunities are endless.

Advantages: There are no restrictions on whom, how or where an

entrepreneur

should set up his/her business. The freedom to do what one wants to do is the biggest advantage in this form of business. It can be extremely fulfilling. Retailing includes all the activities involved in selling goods and services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing.

Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] 41

Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user.

Etymology Retail comes from the French word retailer, which refers to "cutting off, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French).

Types of retail outlets A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world. In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows: •

Food products

•

Soft goods - clothing, apparel, and other fabrics.

•

Hard goods ("hard line retailers") - appliances,

electronics, furniture, sporting goods, etc.

42

There are the following types of retailers by marketing strategy: •

Supermarkets - sell mostly food products;

•

Department stores

- very large stores offering a huge

assortment of "soft" and "hard goods";

Discount stores

•

- tend to offer a wide array of products and

services, but they compete mainly on price;

General merchandise store- a hybrid between a department

•

store and discount store;

Warehouse store

•

- low-cost, often high-quantity goods piled

on pallets or steel shelves; warehouse clubs charge a membership fee;

Variety store or "dollar store" - extremely low-cost goods,

•

with limited selection; •

Demographic Some stores take a no frills approach, while others are

"mid-range" or "high end", depending on what income level they target. Other types of retail store include: •

General store

- a store which sells most goods needed,

typically in a rural area; •

Convenience store - a small store often with extended hours,

stocking everyday or roadside items; •

Big-box stores encompass larger department, discount, general

merchandise, and warehouse stores.

Retailing process 43

Successful retailers know that counting on past success to fuel future growth does not work. Companies that continue to gain market share are evolving with the changing marketplace and expanding into new areas. Continuous improvement is the path to competitive advantage. But many of these change initiatives are fraught with danger. New software solutions can provide great returns but can also cost millions of dollars and system implementations always contain some semblance of risk. Has the collective knowledge of the more experienced members of the team been distilled into an easy to follow step-by-step formula for success? • Are new merchants and replenishment buyers armed with best practice process maps to ensure they can more quickly deliver the results of a seasoned employee? • Are you measuring performance insuring consistent use of best practices across the enterprise? If you answered ‘No’ to any of these questions, you have found an opportunity to achieve Process Excellence and drive cost savings and revenue growth without lengthy and potentially risky system change efforts.

44

Process Excellence can be achieved by following four steps: 1. 2. 3. 4.

Process Mapping Process Improvement Change Management Success Measurement

Process Mapping Process Excellence begins with understanding the current processes used at your company. Through interviews and observation, the steps currently taken to accomplish functional goals are documented. This Means understanding not only the published standards, but learning how these standards

are

individually

applied

across

teams?

An

accurate

understanding of this variation often uncovers the largest opportunities for improvement. Consistency – not creation of new processes – can drive the performance of all teammates to the high levels of the best performers.

Process Improvement Process improvement is defined as identifying gaps between the current processes and the desired process and modifying the current process to more efficiently achieve the desired outcome. It is a more subtle and less drastic cousin to process reengineering; t. Once functional representatives and project sponsors agree on the desired process, gaps are identified on the Current process map. These gaps are activities, decisions or resources that must change to better match with the desired process flow. The identification of these activities needing change leads us to change management, the next step in the Process Excellence process. Change Management Documentation 45

of an improved process or executive recognition of inconsistent execution in itself does not improve results. Real people need to make changes to their workday efforts. Even the best designed process provides little benefit when the team implementing the process chooses to take a different path.

Success Measurement Identifying and tracking key metrics serves two purposes. Measurement of key activities quantifies the benefit realized by the change and ensures the improved process is being followed. First, the benefits of the change can be measured. This helps to justify the time and expense incurred to effect the change. Identify metrics that signify successful completion of the process and cannot be attributed to other change efforts. While this is often difficult, the ability to attribute success solely to the Process Excellence effort enables you to claim the entire benefit. Other higher level metrics such as sales or in stock % are easier to measure, but their improvement often is a factor of several interrelated efforts. Second, you can ensure that the processes remain consistently applied by all team members.

Process Excellence for the Long Term Process Excellence is a tool retailers can use to drive gains while minimizing risk. It focuses on people and ensures you are driving the maximum benefit from the team and tools. It is a journey that never ends. As teams’ transition and new technology is introduced – the Process Excellence effort can be re-energized. And, as teams become familiar with the activities surrounding Process Excellence and

46

key deliverables such as current and desired process maps are already in place, subsequent efforts can be achieved with less time and effort.

Types of retailing: Consumers today can shop for goods and services in a wide variety of retail organizations. These are store retailers, nonstore retailers, and retail organization. Perhaps the best – known type of retailer is the departmental store. Retail – store types pass through stages of growth and decline that can be described as the retail life cycle. A type emerges, enjoys a period of accelerated growth, reaches maturity, and then declines.

Levels of service: Conventional retail stores typically increase their services and raise their prices to cover the costs. These higher costs provide an opportunity for new store forms to offer lower prices and less service. New store types meet widely different consumer preferences for service levels and specific services. Retailers can position themselves as offering one of the four levels of following services.

Self–service:

Self – service is the cornerstone of all discounts operations. Many customers are willing to carry out their own locate – compare – select process to save money.

Self–selection: Customers find their own goods, although they can ask for assistance.

Limited service:

These retailers carry more shopping goods, and customers need more information and assistance. The stores also offer services (such as credit and merchandise – return privileges).

Full service:

Salespeople are ready to assist in every phase of the

locate-compare-select process. Customers who like to be waited on prefer this type of store. The high staffing cost, along with the higher 47

proportion of specially goods and slower-moving items and the many services, results in high-cost retailing. By combining these different service levels with different assortment breadths, one can distinguish the four broad positioning strategies available to retailers,

Corporate Retailing:

Although

many

retail

stores

are

independently owned, an increasing number are part of some form of corporate retailing. Corporate retail organizations achieve economies of scale, greater purchasing power, wider brand recognition, and bettertrained employees.

Marketing Decisions:

In the past retailers held customers by

offering convenient location, special or unique assortments of goods, greater or better services than competitors, and store credit cards. Today, national brands are found in department stores, in their own shops, in merchandise outlets, and in off-price discount stores. In their drive for volume, national – brand manufacturers have placed their branded goods everywhere. The result is that retail – store assortments have grown more alike. Customers have become smarter shoppers. They do not want to pay more for identical brands, especially when service differences have diminished; nor do they need credit from a particular store, because bank credit cards are almost universally accepted.

Target market:

A retailer’s most important decision concerns the

target market. Until the target market is defined and profiled, the retailer cannot make consistent decision on product assortment, store décor, advertising messages and media, price, and service levels.

48

Product assortment and Procurement:

The retailer’s product

assortment must match the target markets shopping expectations. The retailer has to decide on product assortment breadth and depth. Thus a restaurant can offer a narrow and shallow assortment (small launch counters), a narrow and deep assortment (delicatessen), a broad and shallow assortment (cafeteria) or a broad and deep assortment (large restaurant). The real challenge begins after defining the stores product assortment, and that is to develop a product differentiation strategy.

Services and store atmosphere: Retailers must also decide on the services mix to offer customers: •

Pre purchase services include accepting telephone and mail orders,

advertising, window and interior display, fitting rooms, shopping hours, fashion shows, trade – INS. •

Post purchase services include shipping and delivery, gift-

wrapping,

adjustments

and

returns,

alterations

and

tailoring,

installations, engraving. •

Ancillary services include general information; check cashing,

parking, restaurants, repairs, interior decorating, credit, rest rooms, and baby-attendant service. The services mix is a key tool for differentiating one store from another, so is atmosphere. Atmosphere is another element in the store arsenal. Every store has a physical lay out that makes it hard or easy to move around.

Price decision Prices are a key positioning factor and must be decided in relation to the target market, the product-and-service assortment mix, and competition. All retailers would like to achieve high volumes and 49

high gross margins, but the two usually do not go together. Most retailers fall into the high-mark up, lower volume group (fine specialty stores) or the low-mark up, higher volume group (mass-merchandisers and discount stores). Retailers must also pay attention to pricing tactics. Most retailers will put low prices on some items to serve as traffic builders or loss dealers. They will run storewide sales. They will plan markdowns on slower-moving merchandise.

Promotion decision Retailers use a wide range of promotion tools to generate traffic and purchases. They place ads, run special sales, issue money saving coupons, and run frequent shopper-reward programmes, in-store food sampling, and coupons on shelves or at checkout points. Each retailer must use promotion tools that support and reinforce its image positioning.

Place decision Retailers are accustomed to saying that the three keys to success are location, location, and location. Customers generally choose the nearest bank and gas station. Department-store chains, oil companies, and fast food franchisers exercise great case in selecting locations. The problem breaks down into selecting regions of the country in which to open outlets, then particular cities, and then particular sites. Retailers can locate their stores in the central business district, a regional shopping center, a community shopping center, a shopping strip, or within a large store. 1. Number of people passing by on an average day. 2. Percentage who entered the store. 50

3. Percentage of those entering who buy. 4. Average amount spent per sale.

Trends in retailing Following are the main development; the retailers and manufacturers need to take into account, in planning competitive strategies. 1. New retail forms and combinations. 2. Growth of intertype competition. 3. Growth of giant retailers. 4. Growing investment in technology. 5. Global presence of major retailers. 6. Selling an experience, not just goods. 7. Competition between store based and non-store based retailing.

Retail Marketing in India Number of retailers India has sometimes been called a nation of shopkeepers. This epithet has its roots in the huge number of retail enterprises in India, which totaled over 12 million n 2003. About 78% of these are small family businesses utilizing only household labor. Even among retail enterprises that employ hired workers, the bulk of them use less than three workers. India’s retail sector appears backward not only by the standards of industrialized countries but also in comparison with several 51

other emerging markets in Asia and elsewhere. There are only 14 companies that run department stores and two with hypermarkets. While the number of businesses operating supermarkets is higher (385 in 2003), most of these had only one outlet. The number of companies with supermarket chains was less than 10.

Retail sales Which amounted to about Rs.7, 400 billion in 2002, expanded at an average annual rate of 7% during 1999-2002? With the upturn in economic growth during 2003, retail sales are also expected to expand at a higher pace of nearly 10%. In a developing country like India, a large chunk of consumer expenditure is on basic necessities, especially food related items.

Government policy There has been vigorous opposition to foreign direct investment (FDI) in retailing from small traders who fear that foreign retailing companies would take away their business, lead to the closure of many small trading businesses and result in considerable unemployment. Given the political clout of the small trading community, because of their enormous numbers, the government has barred FDI in retailing since 1997. Hence, at present, foreign retailers can only enter the retailing sector through franchising agreements.

Organizational characteristics Given the traditional and underdeveloped state of the Indian retail sector, the organizational characteristics of retail enterprises are rudimentary. Most of them belong to independent enterprises in the form of small 52

family businesses. Cooperatives have been present in India for several decades, spurred by the encouragement given by the Indian Government, which viewed the cooperative movement as an integral component of its erstwhile socialist policies. However, since the 1990s, there has been a reduction in government support for cooperatives.

Chi-Square Test Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis. For example, if, according to Mendel's laws, you expected 10 of 20 offspring from a cross to be male and the actual observed number was 8 males, then you might want to know about the "goodness to fit" between the observed and expected. Were the deviations (differences between observed and expected) the result of chance, or were they due to other factors. How much deviation can occur before you, the investigator, must conclude that something other than chance is at work, causing the observed to differ from the expected? The chi-square test is always testing what scientists call the null hypothesis, which states that there is no significant difference between the expected and observed result. The formula for calculating chi-square = (o-e) O

=

observed values

E

=

Expected values

2

/e

The chi-square is one of the most popular statistics because it is easy to calculate and interpret. There are two kinds of chi-square tests. The first is called a one-way analysis, and the second is called a two-way analysis. 53

The purpose of both is to determine whether the observed frequencies (counts) markedly differ from the frequencies that we would expect by chance.

The observed cell frequencies are organized in rows and columns like a spreadsheet. This table of observed cell frequencies is called a contingency table, and the chi-square test if part of a contingency table analysis. The chi-square statistic is the sum of the contributions from each of the individual cells. Every cell in a table contributes something to the overall chi-square statistic. If a given cell differs markedly from the expected frequency, then the contribution of that cell to the overall chisquare is large. If a cell is close to the expected frequency for that cell, then the contribution of that cell to the overall chi-square is low. A large chi-square statistic indicates that somewhere in the table, the observed frequencies differ markedly from the expected frequencies. It does not tell which cell (or cells) are causing the high chi-square...only that they are there. When a chi-square is high, you must visually examine the table to determine which cell(s) are responsible. When there are exactly two rows and two columns, the chi-square statistic becomes inaccurate, and Yates correction for continuity is usually applied. Statistics Calculator will automatically use Yates correction for two-by-two tables when the expected frequency of any cell is less than 5 or the total N is less than 50. If there is only one column or one row (a one-way chi-square test), the degrees of freedom is the number of cells minus one. For a two way chi54

square, the degree of freedom is the number or rows minus one times the number of columns minus one.

Using the chi-square statistic and its associated degrees of freedom, the software reports the probability that the differences between the observed and expected frequencies occurred by chance. Generally, a probability of .05 or less is considered to be a significant difference. A standard spreadsheet interface is used to enter the counts for each cell. After you've finished entering the data, the program will print the chisquare, degrees of freedom and probability of chance. Use caution when interpreting the chi-square statistic if any of the expected cell frequencies are less than five. Also, use caution when the total for all cells is less than 50.

55

DATA ANALYSIS AND INTERPRITATION The process by which sense and meaning are made of the data gathered in qualitative research, and by which the emergent knowledge is applied to clients' problems. This data often takes the form of records of group discussions and interviews, but is not limited to this. Through processes of revisiting and immersion in the data, and through complex activities of structuring, re-framing or otherwise exploring it, the researcher looks for patterns and insights relevant to the key research issues and uses these to address the client's brief. Materials which are collected and analysed by qualitative researchers in order to provide answers to the client's brief. In qualitative market research, data has traditionally taken the form of interview records (tapes and transcripts of interviews and group discussions) but increasingly includes other materials such as observations or relevant cultural material such as advertising, magazines, films and so on. The term 'data' is often disliked by qualitative market researchers since it has highly quantitative research connotations; terms such as findings or research materials may be used instead. From the questionnaire we are following the data and interpretation and the data with graphical representation by the charts and circles.

56

Which company drinks are available in the shop?

1.

a) Pepsi

b) coke

s.no

c) Both

No of respondents 0

Percentage

1

Available in shop Pepsi

2

Coke

80

73%

3

Both

30

27%

0%

80

80 70 60 50 40

30

30

avalibility

20 10 0

0 pepsi

coke

both

57

pepsi, 0 both, 27%

pepsi

coke

both

coke, 73%

Interpretation: From the above information we can understand that 73% of respondents accepted that only coke brands are available in the retail outlets. Remaining 27% of respondents accepted both coke and Pepsi brands are available in the retail outlets. From this we can understand that majority of retailers are preferring coke brands.

2. What are the coke brands available in the shop? 58

a) Thumps up b) maaza

c) sprite d) coke e) all drinks

s.no

Available in shop

No of respondents

Percentage

1

Thumps up

0

0%

2

Maaza

0

0%

3

sprite

0

0%

4

coke

0

0%

5

All drinks

110

100%

120

110

100 80 60

avalibility

40 20 0

0 thumsup

0

0

maaza

sprite

0 coke

all drinks

59

coke thumsup maaza sprite all drinks

pecentage, 100%

Interpretation: From the above information we can understand that 100% of respondents accepted that all the coke brands are available in their retail outlets. From this we can understand that majority of the retailers in Guntur district maintaining all the brands of coke.

3. Are you aware of credit schemes of the company? 60

a) Yes

b) No

s.no

particulars

1 2

70

Percentage

Yes

No of respondents 70

No

40

36%

64%

70

60 50 40

40 credit schems

30 20 10 0

yes

no

61

no 36%

yes no

yes 64%

Interpretation: From the above information we can understand that 64% of retailers chosen ‘yes’ option. From this we can understand that retailers are aware of the credit schemes of Coke Company. Remaining 36% of retailers chosen ‘no’ option. From this we can understand that they don’t have awareness of the credit schemes of Coke Company.

4. Are you aware of the incentives schemes of the company? 62

a) Yes

80

b) No

s.no

particulars

No of respondents

Percentage

1

Yes

80

73%

2

No

30

27%

80

70 60 50 40

30

30

incentives

20 10 0

yes

no

63

27%

yes no

73%

Interpretation: From the above information we can understand that 73% of respondents chosen the ‘yes’ option. From this we can understand that retailers getting good incentives from the coke company. Retailers are increasing the company sales percentage. Remaining 27% of respondents chosen ‘no’ option. From this we can understand that retailers are providing lesser sales to the company then company providing lesser incentives.

5. Satisfied with stock maintenance of coke brands? 64

a) Yes

70

b) No

s.no

particulars

No of respondents

Percentage

1

Yes

70

64%

2

No

40

36%

70

60 50 40

40

stock maintain

30 20 10 0

yes

no

65

36%

yes no 64%

Interpretation: From the above information we can understand that 64% of respondents chosen ‘yes’ option. From these we can understand that retailers satisfied with stock availability. Remaining 36% of the retailers chosen ‘no’ option. Retail outlets are long distance from distributor’s goo down. From this we can understand that respondents showing lesser sales that’s why company stock providing alternate days are weekly twice.

6.

Satisfied with replenishment time of the company? 66

a) Yes

b) No

s.no

particulars

No of respondents

Percentage

1

Yes

50

46%

2

No

60

54%

60

60 58 56 54 52 50

relishment

50

48 46 44

yes

no

67

46% 54%

yes no

Interpretation: From the above information we can understand that 46% of respondents chosen ‘yes’ option. This revels that most of the retailers are satisfied the replenishment time of the coke company. And Remaining 54% of respondents chosen ‘no’ option. This revels that most of the retailers are not satisfied with replenishment time. From this we can understand that Company is not offering sufficient replenishment timing to the all retailers.

7. Company is offering good credit polices? 68

a) Yes

b) No

s.no

particulars

No of respondents

Percentage

1

Yes

75

68%

2

No

35

32%

80

75

70 60 50 40

35

30

good cr policies

20 10 0

yes

no

69

32%

yes no 68%

Interpretation: From the above information we can understand that 68% of respondents chosen ‘yes’ option. Remaining 32% of respondents chosen ‘no’ option. From this we can understand that Majority of the retailers are increases sales percentage of the company. Then company providing optimum stock and gave the credit period to the retailers. Some of retailers don’t have increased sales percentage of Coke Company.

8. I feel happy with discounts of company? 70

a) Yes

b) No

s.no

particulars

No of respondents

Percentage

1

Yes

40

36%

2

No

70

64%

70

70 60 50

40

40 discounts

30 20 10 0

yes

no

71

36%

64%

yes no

Interpretation: From the above information we can understand that 36% of respondents chosen ‘yes’ option. From this we can understand that company offering good discounts to retailers and who increases the sales that one get the good discount from Coke Company. And Remaining 64% of respondents chosen ‘no’ option because they do not increases a sales percentage of coke company that’s why company not providing any discounts to retailer.

9. I feel difficulty with maintaining optimum stock? 72

a) Yes

b) No

s.no

particulars

No of respondents

Percentage

1

Yes

60

55%

2

No

50

45%

60

60

58 56 54 52

50

50

maintenance

48 46 44

yes

no

73

45%

55%

yes no

Interpretation: From the above information we can understand that 55% of respondents chosen ‘yes’ option because those retailers not satisfied with optimum stock maintenance. And remaining 45% of respondents chosen ‘no’ option because retailers satisfied with coke optimum stock levels. From this we can understand that majority of retailers outlets is longer distance from distributor’s outlet.

74

10. Company

is not maintaining good replenishment time?

a) Yes

b) No

s.no

particulars

No of respondents

Percentage

1

Yes

60

54%

2

No

50

46%

60

60

58 56 54 52

50

50

replenishment

48 46 44

yes

no

75

46% 54% yes no

Interpretation: From the above information we can understand that 54% of respondents chosen ‘yes’ option. And because those retailers is not satisfied with the replenishment time of the coke company. And remaining 46% of the respondents chosen ‘no’ option. And because those retailers getting good replenishment. From this we can understand that company is not providing better replenishment time to the retailers.

11.

Are you satisfied with credit methods of the company? 76

a) Yes

b) No

s.no

particulars

No of respondents

Percentage

1

Yes

35

32%

2

No

75

68%

75

80 70 60 50 40

35 good cr method

30 20 10 0

yes

no

77

32%

yes no

68%

Interpretation: From the above information we can understand that 32% of respondents chosen ‘yes’ option. And remaining 68% of the retailers chosen ‘no’ option. From this we can understand that majority of retailer’s shows more sales to the company. Then company offering good credit methods to the retailers.

12.What percentage discounts the company is providing? 78

a) 0-10%

b) 11-20%

c) 21-30%

d) more then31%

s.no

Discount range

No of Respondents

percentage

1

0-10%

60

55%

2

11-20%

20

18%

3

21-30%

30

27%

4

More than 30%

0

0

60

60

50 40

30

30

discount range

20

20 10 0

0 0-10

20-11

20-30

>31

79

0 27% 0-10% 20-11% 21-30 more than 30%

18%

55%

Interpretation: From the above information we can understand that 55% of respondents chosen (0-10%) discount. And after 18% of respondents chosen (11-20%) discount. And remaining 27% of respondents getting (21-30%) discount. From this we can understand that those retailers increase sales then company providing better discounts percentages to the retailers.

13.Are you satisfied with discount percentage? a) Yes

b) No 80

s.no

particulars

No of respondents

Percentage

1

Yes

40

36%

2

No

70

64%

70

70

60 50 40

40 satisfing dis

30 20 10 0

yes

no

81

36%

64%

yes no

Interpretation: From the above information we can understand that 36% of respondents chosen ‘yes’ option. And the remaining 64% of respondents chosen ‘no’ option. From this we can understand that majority of respondents not satisfied with discounts percentage of Coke Company.

82

14.

Are you satisfied promotional schemes of the

company? a) Yes

b) No

s.no

particulars

No of respondents

Percentage

1

Yes

75

68%

2

No

35

32%

80

75

70 60 50 40

35

30 20

promotional schems

10 0

yes

no

83

32%

yes no

68%

Interpretation: From the above information we can understand that 68% of respondents chosen ‘yes’ option. And remaining 32% of respondents chosen ‘no’ option. From this we can understand that majority of respondents know the promotional schemes of what actually coke company providing to retailers.

84

CHISQUARE TEST Retailer satisfaction on geographical background and promotional schemes NULL HYPOTHESIS (H0): There is no significant difference on retailer satisfaction on geographical background and promotional schemes of retailers in both rural & urban areas. Particulars

Yes

No

Total expected value

Urban

40(38)

20(22)

60

Rural

30(32)

20(18)

50

Total observed values

70

40

110

Total expected value

70

40

110

INTERPRETATION: H1: There is no significance difference between both rural & urban areas, on rating for “promotional schemes and geographical background of retailers” calculated chi-square value (x2) is 0.40 is less than the chi square table value at 5% level of significance (df=2-1=1) is 3.84 hence null hypothesis is accepted.

85

Retailer satisfaction on geographical background and promotional activity

NULL HYPOTHESIS (H0): There is no significant difference on rating for retailer satisfaction on geographical background and promotional activity on discounts by retailers in both rural & urban areas. particulars

0-10%

11-20%

21-30%

More than Total 31% expected value

Urban

40(38.18)

10(13)

20(19.09)

0

70.27

Rural

20(21.83)

10(7)

10(10.9)

0

39.73

Total observed values

60

20

30

0

110

Total expected values

60

20

30

0

110

INTERPRETATION: H1: There is no significance difference between both rural & urban areas, on rating for “promotional activity on discounts and geographical background” calculated chi-square value (x 2) is 1.72 is less than the chi square table value at 5% level of significance (df=4-1=3) is 7.82 hence null hypothesis is accepted.

86

Retailer satisfaction on geographical background and stock maintenance NULL HYPOTHESIS (H0): There is no significant difference on rating for promotional activity of stock maintenance and geographical background by retailers in both rural & urban areas. Particulars

Yes

No

Total expected value

Urban

30(28.64)

15(16.36)

45

Rural

40(41.37)

25(23.63)

65

Total observed values

70

40

110

Total expected value

70.01

39.99

110

INTERPRETATION: H1: There is no significance difference between both rural & urban areas, on rating for “stock maintenance and geographical background” calculated chi-square value (x 2) is 0.28is less than the chi square table value at 5% level of significance (df = 2-1 =1) is hence 3.84 null hypothesis is accepted.

87

5.1. FINDINGS •

The study reveals that majority of the retailers in Guntur district was preferred coke brands.

•

The study elicits that majority of the retailers are maintaining optimum product availability.

• The study reveals that Coke Company is providing good awareness about the credit schemes •

The study elicits that retailer aware of the incentives of the coke company.

• The study elicits that majority of the retailers are satisfied with stock availability. • The study reveals that company is not maintaining good replenishment time period. • The study elicits that company is providing better credit policies to the retailers of Guntur district. • The study reveals that majority of the retailers are not satisfied with discount percentage offered by company. • The study reveals that majority of the retailers are not satisfied by the replenishment time followed by the company •

The study reveals that majority of the retailers are getting lower discount percentage from Coke Company.

• The study reveals that majority of the respondents are getting good promotional schemes from Coke Company. •

The study reveals that relation between geographical area & promotional activity on both rural and urban areas from Coke Company. 88

•

The study elicits that relation between geographical area & promotional activity of discounts on both rural and urban areas from Coke Company.

•

The study reveals that relation between geographical area & promotional activity of stock maintenance on both rural and urban areas from Coke Company.

89

5.2. SUGGESTIONS

•

The company is performing a detail demand survey at regular interval to know about the unique needs and requirements of the retailer.

• It is suggested that the company should develop a proper feedback mechanism process in terms of identifying and implementing the retailer suggestions. • The company should focus of lunching more flavors and varieties of soft drinks to get more profits. • It is recommended that the company should improve promotional activities in terms developing the brand awareness among the rural retailers in Guntur district. •

It is recommended that the company should keep a eagle eye on the distributors because in some cases their a chance of cheating the rural retailers due to this good will of the company may be damaged.

• A strong watch should be kept on distributors also, because in some cases they are found to be cheating the retailers and affecting the goodwill of the COMPANY BRAND. 90

•

It is better to the company to develop an effective add campaign in rural areas so that rural retailers & customers may get good awareness of the company brands.

5.3. CONCLUSION From the study we conclude that majority of the retailers in Guntur rural & urban areas are satisfied with the most of the company’s retailer’s schemes like discount rates, credit policies, incentive schemes etc. It is also found that coke brands are having good brand image in the market study also highlights the rural retailer’s problems like awareness regarding retailer schemes. So it is better to the company to develop effective feedback systems in terms of identifying the rural retailer problems and company has to develop an effective mechanism for solving the retailer problems quickly. So that gains good brand equity in the market.

91