1

A Report On

Analysis Of Horizontal Expansion Strategy

Of Coke Lucknow

by

Farhan ahmad

MBA

Integral University,Lucknow

Roll no: 1100122035

Under the guidance of

Internal Guide- External Guide-

Zahid Raza Khan Chitresh Tiwari

Asst. Professor, Marketing Training co-ordinator

2

Integral University Advance Sales & Service

Pvt. Ltd.

Declaration

I hereby declare that I have worked on the topic “Analysis of Horizontal Expansion Strategy of Coke Lucknow” from 4th June 2012 to 28th July 2012.

All the information that has been collected, analyzed and documented for the project is authentic possession to me.

I would like to categorically mention that the work here has neither been purchased nor acquired by any other unfair means. The data and information existing in this report are accurate and update to the current data, to the best of our knowledge.

However, for this purpose of the project, information already compiled in many sources has been utilized.

All information in this report is true representation of what I have experienced during the project.

Farhan Ahmad

3

Acknowledgement

Co-operation and building up of moral are the essence of success. These are two factors that go a long way in achieving it. It is a Herculean task, which lacks these two determinants of success. Summer training was an exposure to corporate environment. It was an opportunity and great pleasure for me to be in such an environment and having interaction with concerned people.

I express my heartily respect and profound thanks to Mr. Chitresh Tiwari(MEM) and Mr. Rajan Sharma (Head of Sales) for their enlightening and meticulous guidance for the consummation and evaluating of this project.

Zahid Raza Khan Asst. Professor, Marketing ,Department of Management & Research, who was in the role of my Faculty Guide, left no stone unturned in guiding me along the course of my Summer Training Project work.

I am grateful to them those given me this opportunity to work on such type of project, without their, it is not possible for me to complete the project.

Finally, to my parents, for all the tea and care with which they overwhelmed me through these long months of creation.

I sincerely hope that my first venue in this field is appreciated. Offering thanks.

Farhan Ahmad

4

DEPT. OF BUSINESS MANAGEMENT & RESEARCH

INTEGRAL UNIVERSITY

DASAULI, KURSI ROAD, LUCKNOW-226026

Website: www.integraluniversity.ac.in

GUIDE CERTIFICATE

This is to certify that Mr.Farhan Ahmad, a student of MBA 3rd Semester having Roll No. 1100122035 has completed his summer training project on the topic “Analysis of Horizontal Expansion Strategy of Coca-cola Lucknow” during 2012-13 under my supervision and guidance.

The behavior of the student during the training period was found to be highly appreciable and satisfactory.

I wish him all the best for his future.

5

Zahid Raza Khan

Asst. Professor, Marketing

Dept. of Business Mgmt & Research

Integarl University, Lucknow

6

TABLE OF CONTENTS

1. Title page

2. Declaration

3. Guide certificate

4. Training certificate

5. Acknowlegement

6. Executive summary

7. Table of contents

8. Objectives

9. Company profile

History

Vision and mission

Organizational chart

Product portfolio

Corporate strategy

Future plan’s

Profile of Organization imparting training

10. Daily dairy (work done)

11. Conceptual background of topic

12. Job based work

Task done

Profile of the area given

Work done

Findings

Conclusion and suggestion

13. Refrences

7

14. Annexure

8

Objectives

A.PROVIDING INFORMATION ABOUT OYA (OWN

YOUR ASSET).

B.LEARN HOW TO IDENTIFY POTENTIAL

OUTLET.

C.LEARN HOW TO COMMUNICATE WITH THE

POTENTIAL OULET RETAILER.

D.PROFIT CALCULATION.

E. HOW TO DEAL WITH OBJECTION/QUERY FROM

A NEW OUTLET OWNER.

F. TELL PROFIT STORY TO THE RETAILER.

G.ASKED HIM ABOUT IF HE IS INTERESTED OR

NOT IN TAKING THIS SCHEME.

9

Company profile

10

Introduction of the Company

FEW WORDS ABOUT THE COMPANY

Every person who drinks a Coca-Cola enjoys a moment of refreshment and

shares an experience that millions of others have served. All of those individual

experiences combined have created a worldwide phenomenon – a truly global

brand.

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 company-owned Bottling arm of the Indian Operations, Advance Sales &

Service Pvt. Ltd. is responsible for the sale and distribution of beverages across

the Lucknow. A career at Advance Sales & Service Pvt. Ltd. is truly a one-of-a-

kind experience. Come taste life at Coca-Cola.

11

COCA COLA INTERNATIONAL

HISTORY:HISTORY:

Coca-Cola Enterprises, established in 1986, is a young company by the

standards of the Coca-Cola system. Yet each of its franchises has a strong

heritage in the traditions of Coca-Cola that is the foundation for this Company.

The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta

pharmacist, Dr. John Pemberton , began to produce Coca-Cola syrup for sale in

fountain drinks. However the bottling business began in 1899 when two

Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead ,

secured the exclusive rights to bottle and sell Coca-Cola for most of the

United States from The Coca-Cola Company.

The Coca-Cola bottling system continued to operate as independent, local

businesses until the early 1980s when bottling franchises began to consolidate.

In 1986, The Coca-Cola Company merged some of its company-owned

operations with two large ownership groups that were for sale, the John T.

Lupton franchises and BCI Holding Corporation's bottling holdings, to form

Coca-Cola Enterprises Inc. The Company offered its stock to the public on

November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual

basis, total unit case sales were 880,000 in 1986.

In December 1991, a merger between Coca-Cola Enterprises and the Johnston

Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company,

again helping accelerate bottler consolidation. As part of the merger, the

senior management team of Johnston assumed responsibility for managing the

Company, and began a dramatic, successful restructuring in 1992.Unit case

sales had climbed to 1.4 billion, and total revenues were $5 billion

12

The Mission Statement of the Coca Cola Company

Our mission statement is to maximize shareowner value over time.

In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:

1. Consumer demand drives everything we do.2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink

beverages they want to drink through out the day.4. We will be the best marketers in the world.5. We will think and act locally.6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market.

There are nearly 6 million people in the world who are potential consumers of our company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.

13

MANAGEMENT PROFILE:MANAGEMENT PROFILE:

The hierarchy of Coca Cola Company is as follows.

ChairmanBoard of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

14

MARKET SHAREMARKET SHARE:

Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.

MARKET SHARE BY AREAMARKET SHARE BY AREA::

Coca Cola is the world-renowned soft drink and the company is currently operating through out the world. The world wide total is about 17.8 billion.

The operation review according to the segments is as follows.

(2002 worldwide unit case volume by operating segment)

NORTH AMERICA

LATIN

AMERICA

EUROPE &

MIDDLE EAST

ASIA AFRICA

30% 25% 22% 17% 6%

NORTH AMERICA

LATIN AMERICA

EUROPE & MIDDLE EAST

ASIA

AFRICA

15

So the volume is least in the Africa and most in the North America. The data about the market share of this company area wise is given in the following table.

The above table shows the geographical earning of the Coca Cola Company and from this data; we can find out that the customers of Coca Cola are increasing which is shown by the company’s per capita income. Unit case equals 24 eight-ounce servings.  The column, which shows the non-alcoholic beverages consist of commercially, sold beverages, as estimated by the Company based on available industry sources. The country column is derived from In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and the average consumer enjoys close to two servings of our products each month. Through an intense focus on Coca-Cola, innovation and new beverages, the company has achieved volume growth of 10 percent in 2002. With developing economies and populations, this region has strong long-term potential, and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands, led by Coca-Cola. In China, for example, sales of Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart.

(Figure)

So the company is emphasizing more in this area and is trying to develop a strategy, which can increase the growth of the consumption of Coca Cola by the people of Asia. Among the countries of Asia, Japan has the highest percentage, which is about 29%. Among others, Pakistan, India and Bangladesh are those countries where the average consumption is increasing day by day.

16

COCA-COLA IN INDIA

The Coca-Cola Company entered India in the early 1950s. It set up four

bottling plants at Bombay, Calcutta, Lucknow, Kanpur and Delhi.

In 1950 as there were negligible companies in Indian market therefore

Coca-Cola did not face much competition and they were accepted in Indian market

more easily. By the end of 1977 Coca-Cola had captured more than 45% of market

share in India. Then Coca-Cola left India following public disputes over share

holding structure and import permit. As per FERA REGULATION the company

was required to India close operation by May 5, 1978 yet strongly enough the

company’s operation come to end in July 1977.

In October 1993, Coca-Cola returned to India after 16 years of absence with

the slogan “Old waves have come to India again” first launched in HATHRAS near

AGRA HOME of the famous TAJ MAHAL.

At this time Parle was the leader in soft drink market and had more than

60% of the total market share in soft drink Coca-Cola joined hand with Parle and

strategic alliance with Parle export give the company instant ownership of the

nation top soft drinks brands Thums-Up, Limca, Citra, Gold Spot and Maaza

access to Parle’s extensive 62 plant bottling network and a base for the rapid

introduction of the company’s international brand by striking a $40 million deal

with Parle Coke almost a clear sweep and made it goal as “To become an all

occasion drink not a special treat beverage”.

17

VISION OF COCA-COLA IN INDIA

Provide exceptional strategic leadership in the Coca-Cola India System

resulting in consumer and customer preference and loyalty through Coca-Cola’s

commitment to them, and in a highly profitable Coca-Cola corporate branded

beverage system.

MISSION OF THE COCA-COLA IN INDIA

Create consumer products, services and communications customer’s service

and bottling system strategy processes 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 profits through the use of

finished drinks.

Bottlers as an opportunity to make reasonable to grow profits and

volume.

TCCC as trademark enhancement and positive economic value

added.

Suppliers as an opportunity to make reasonable profits when

creating real value added in an environment of system wide

teamwork, flexible business system and continuous improvement.

CCI associates as superior career opportunity.

Indian society in the form of a contribution to economic and social

development.

18

PRODUCT PROFILE OF COCA-COLA

There are nine brands of coca-cola in India and they are differ in taste,

flavor and also in their colours.

1. COKE

Coke is considered to be a cola drink. It is generally preferred by all

sections of consumer. This is a case cow brand for the company in terms of sales

revenue.

2. THUMS-UP

Thums-up is also considered to be a cola drink. It is hard in comparison to

coke. It is preferred by all section of consumers but especially to teen-agers. It is a

big source of company to cash its publicity.

3. LIMCA

Limca is considered to be lemony in taste, and comes under the category of

cloudy lemon because of its colour, which is similar to that of clouds. It has to

yield good sales revenue. It is generally preferred by Children & Women.

4. FANTA

FANTA ORNAGE, It is orange flavor & preferred by Children & Women.

19

5. MAAZA

MAAZA MANGO, in maaza cold drink no gas only based on juice. It is a

non-aerated soft drink. It is preferred mostly Children & Women.

6. KINLEY SODA

This is a soda drink. It has no colour and no flavor. It is generally used with

alcohol and used by adults.

7. SPRITE

Sprite is a good product at cola and contains at lemon flavor.

8. KINLEY WATER

Kinley water is a fresh and mineral water and market competitor of Bisleri

and Aquafina.

9. MINUTE MAID

In Minute maid pupply orange cold drink no gas only based on orange

juice. It is a non-aerated soft drink and market competitor of Tropicana Twister.

20

21

SWOT ANALYSIS

STRENGTHS

1. Improved quality control.

2. Latest technology.

3. Heavy investment in both infrastructure and sales promotion campaigns.

4. Modified and attractive packaging.

5. Strong advertising network.

WEAKNESS

1. Entire infrastructure needs a face-lift.

2. Unskilled labour.

3. Tight case policy.

4. Fear of retrenchment among the workers.

OPPORTUNITIES

1. Wide market.

2. Good rural market.

3. Direct distribution.

THREATS

1. Stiff competition.

2. Illegal distribution done by some distributors.

3. Changing of consumer preference.

22

Corporate strategy

Coca-Cola India operations are fully integrated into the governance structure of The Coca-Cola Company, including two important codes:

(a) The Code of Business Conduct outlines expectations for employees to

comply with the law and act ethically in all matters. The Code remains

applicable to all employees of The Coca-Cola Company and its majority-

owned subsidiaries.

Anti-Bribery Policy: The Coca-Cola Company and its subsidiaries are committed to doing business with integrity. This means avoiding corruption of all kinds, including bribery of government officials. We will abide by all applicable anti-bribery laws, including the U.S. Foreign Corrupt Practices Act, and local laws in every country in which it does business. The Company is a signatory to the United Nations Global Compact, by which it is committed to work against corruption and bribery around the world. The Company also has incorporated a prohibition against bribery into its Code of Business Conduct. This anti-bribery policy provides compliance requirements to prevent improper payments and to ensure accurate reporting of permissible payments under all applicable anti-bribery laws.

(b) The Code of Business Conduct for Suppliers seeks to extend and clarify similar ethical expectations to our suppliers. The Supplier Code became effective in February 2008. Both the Code of Business Conduct and the Supplier Code highlight the EthicsLine reporting service, through which individuals can confidentially ask questions or report concerns to an independent administering party.

23

Future plan’s

Coca-Cola laid out goals within the areas of profit, people, portfolio, partners, planet and productivity. Key priorities include doubling system revenue to $200 billion in 2020 from $95 billion last year. And Coke plans to more than double the numbers of servings of its products -- water, soft-drinks, juices and the like -- consumed per day to more than 3 billion.

From a marketing perspective, the company will focus on working across many geographies, cultures and channels, targeting the right consumers in a fragmented media environment and innovating.

Coca-cola plans to be relevant locally while scaling globally. Those plans ranged from eliminating agency duplication to creating a single World Cup campaign to introducing new, global packaging for its juice brands. Efforts to better connect with key consumers, including teens, moms and multicultural consumers, were also detailed. And the marketing team touted its focus on experimenting with new media, such as digital billboards, social media and in-store advertising, while affirming its intent to continue creating high-profile TV campaigns.

24

Profile of Organization imparting training

Advance Sales & Service Pvt.Ltd.

• Advance Sales & Service Pvt. Ltd. is a marketing and

distribution, Franchise of Brindavan Bottlers Pvt. Ltd.

• Lucknow, Barabanki, Lalitpur, Jhansi, Lakhimpur,

Sitapur & Faizabad are the distribution and market area

for Advance Sales & Service Pvt. Ltd.

25

Daily dairy

I. 13/6/2012 to 18/6/2012

Visited five new outlet in Tedi pulia.

II. 20/6/2012 to 25/6/2012

Visited five more outlet in Tedi pulia & Jankipuram.

III. 26/6/2012

Meeting day: work done in two days presented in front of mr. chitresh

tiwari(training guide).

IV. 27/6/2012 to 2/7/2012

Visited five more outlet in kursi road.

V. 4/7/2012 to 9/4/2012

Visited five more outlet at Jankipuram.

VI. 10/6/2012

Report given to mr. chitresh tiwari and he had given us 15 day time to

prepare a report on the topic given to us.

26

Conceptual background of

topic

27

Horizontal Expansion

Expansion of business capacity through the absorption of facilities or buildings as well as

through the acquisition of new equipment to handle an increased volume in sales in which

the business is already engaged.

In microeconomics and strategic management, the term Horizontal Expansion describes a

type of ownership and control. It is a strategy used by a business or corporation that seeks

to sell a type of product in numerous markets.

Horizontal Expansion in marketing is much more common than Vertical Expansion is in

production. Horizontal Expansion occurs when a firm is being taken over by, or merged

with, another firm which is in the same industry and in the same stage of production as the

merged firm,

For e.g. Pepsi has adopted strategy of Vertical Expansion by which Pepsi wants to improve

it’s sale from Coke monopoly outlets, means Coke’s monopoly outlets are being taken

over by Pepsi now in this condition to improve its sale Coke need to open new outlets

which is called Horizontal Expansion Strategy. A monopoly created through Horizontal

Expansion is called a Horizontal Monopoly.

This is the expansion of a firm within an industry in which it is already active for the

purpose of increasing its share of the market for a particular product or service.

28

Reason of Horizontal Expansion

The ultimate objective of coke is to acquire more customers and serve them properly. While

doing Horizontal Expansion take care to the competitor’s strategy. The main competitor is

PEPSI, who has opted Vertical Expansion to generate more sell however Coke do not

believe on Vertical Expansion because Vertical Expansion has limited preview so COKE is

great believer in Horizontal Expansion and this strategy helped to the company to maintain

its leadership in the soft drink industry.

India is a big country having diversified taste and appearance and same character is reflected

in their demography. Horizontal Expansion helps the company to serve the more people and

more customers touch point because in the waste country many customers commute.

29

Benefits of horizontal expansion:

• Provides Incremental Volume & Revenue for Business.

• By horizontal expansion there will be more outlets of our product In the market

which will sell our product in more quantity. This will generate incremental revenue

for the business.

• Helps Improve Route Productivity

• There are pre determined routes through which product is transported and delivered

at the coke outlets. If we open more outlets on the routes it will increase the

productivity because more outlets will be covered and more products will be delivered

with a negligible increase in time and efforts. Hence it will improve productivity of the

route

• Improves Profitability of Our Distributors Expenses on routes and delivery of product

are incurred by the distributers. Opening new outlets will give more revenue to our

distributors also. With the increase in route productivity will improve profitability of

the distributors.

• Reduced Dependence on Large Customers, We know that coke products have a very

good demand. To comply with this we have to provide large amount of supply. In case

we have few outlets a large amount of stock is gathered at few retailers. In this case

they become monopolistic and demand many things like coolers refrigerators discounts

margins etc. from the company. So it is very necessary to reduce dependence on large

retailers by opening new outlets.

• Increase market visibility selling at more outlets give more market visibility of the

product which gives higher product recognition and brand value to the products.

• Economies of scale

30

• Economies of scope

• Increase in market power over supplier and downstream market channels.

Advantage of horizontal expansion over vertical expansion:

Both expansion techniques are meant for increasing sales volumes. But in horizontal

expansion company can earn more profits by spending less. Let’s see the profit story of

horizontal expansion

Impact of New Outlets on Business

Vertical Growth by

RED Execution

Horizontal Growth

by New Outlet

Opening

Measure 2008 2009

Number of Existing Outlets 10000 10000

Total Volume (in Lac Phy Cases) 50 55

VPO in Phy Cases 500 550

Number of New Outlets 2000

New Outlet VPO 125

Incremental Volume (in Lac Phy Cases)

2.5

Grand Total Volume in Lac Cases)

50 57.5

31

32

Above tables clearly indicate the importance of opening new outlets. By doing vertical

expansion only growth in profit was not very effective but because of opening just 200

new outlets sales increased to a large extent. Total profit margin and return on investment

also increased.

Impact of New Outlets on Distributors

Better Margin

More Returns

Increased ROI

Measure 2008 2009

Number of Existing Outlets 1000 1000

Total Volume (in Lac Phy Cases) 3 3.5

VPO (in Phy Cases) 300 350

Numer of New Outlets 200

New Outlet VPO 150

Incremental Volume from New Outlets(in lac Phy Cases)

0.3

Grand Total Volume 3 3.8

Margin Per Case 12 12

Gross Total Margin (in Rs 000's) 3600 4560

Operating Expense (in Rs 000's) 7 6.5

Net Total Return (in Rs 000's) 1500 1925

Investment (in Rs Lac) 80 85

ROI 19% 23%

33

How to Do Horizontal Expansion

To do Horizontal Expansion more efficiently I made a profit story and talk to the shopkeepers according to that story.

Story

Salesperson – hello sir, I am from Coke and I have a proposal that will surely increase your income. May I present you?

Shopkeeper – yes please present it

Salesperson - Sir if you will start to sell coke then your overall sale will be increased and it is not tough to sell coke because Coke is the leader in beverage industry and a very well known brand.

Shopkeeper- yes, but how it can increase my overall sale?

Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products have a very good combination with cold drink. If a person wants to purchase any of these products then it is quite possible that he will purchase Coke and vice versa.

Shopkeeper – But how Coke can increase my profit?

Salesperson – Sir if you are really interested to explore through Coke, you may be able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 6oo ml and 1 case of 2 liter. And for start selling Coke you need to invest only Rs. 420. We will provide you 3 empty carets

Weight of Product (ML)

Rate of case (Rs.)

QTY M.R.P.(Rs.)

Revenue(Rs.)

Profit(Rs.)

200 168 24 8 192 24300 214 24 10 240 26600 488 24 22 528 402000 455 9 55 495 40

Sir your daily profit from coke (in Peak season) = Rs. 154

Profit per month (in Peak season) = Rs. 4620

Profit of whole season = Rs. 13860

(Because the peak season for Coke is only of 3 months)

Profit of rest of the 9 months = Rs. 20790

34

(Because as per the Coke assumption income in the off season is decreased by half in comparison to the Peak season)

Profit of whole year = Rs.34650

Your investment = Rs. 1913

Your ROI = 34650 * 100/1913

= 1811.29%

Shopkeeper – But I do not think this much will work what about those stuffs that needs to support trading of Coke and I have to provide them like electricity, ice etc.

Salesperson – Sir that’s a really nice question, we can understand your anxiety and we have to offer much more for this. We have minimum Rs. 10 offer on 200 and 300 ml and Minimum Rs. 20 on Pet bottles. More over if you are keeping your refrigerator for the storage purpose of Coke if will be all right as the refrigerator can work by consuming power as low as 2 units per day which will cost you Rs. 8 per day.

So, what you have to say about our offer?

Shopkeeper – Yes, I think it will be a nice idea to accept your offer.

Salesperson – Thank you sir and Congratulation (Shaking Hands) I will be dropping my products within 10 minutes as I have the carrying vehicle with me and within next 15 minutes you are all set to go for selling Coke.

On some shops we set refrigerators and to keep a refrigerator we need to collect 1 photo copy of Voter ID card or Rashen Card, 1 photo copy of electricity bill and 1 passport size photo of shopkeeper.

35

Job based workdone

36

Task done

a. To do horizontal expansion scheme through OYA scheme.

b. To help the company for doing horizontal expansion by providing

information to new potential customer.

c. Learn how to identify potential outlet.

d. How to communicate with retailer of the potential outlet.

e. Learn the profit table to tell the retailer.

f. How to deal with objection/query from new outlet owner.

g. Tell profit story to retailer ,tell him the benefit in accordance to the

profit story.

h. Then ask him he is interested or not in this scheme of horizontal expansion through OYA.

37

HOW TO TALK TO RETAILER

Salesperson – hello sir, I am from Coke and I have a proposal that will surely increase your income. May I present you?

Shopkeeper – yes please present it

Salesperson - Sir if you will start to sell coke then your overall sale will be increased and it is not tough to sell coke because Coke is the leader in beverage industry and a very well known brand.

Shopkeeper- yes, but how it can increase my overall sale?

Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products have a very good combination with cold drink. If a person wants to purchase any of these products then it is quite possible that he will purchase Coke and vice versa.

Shopkeeper – But how Coke can increase my profit?

Salesperson – Sir if you are really interested to explore through Coke, you may be able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 6oo ml and 1 case of 2 liter. And for start selling Coke you need to invest only Rs. 420. We will provide you 3 empty carets

Weight of Product (ML)

Rate of case (Rs.)

QTY M.R.P.(Rs.)

Revenue(Rs.)

Profit(Rs.)

200 168 24 8 192 24300 214 24 10 240 26600 488 24 22 528 402000 455 9 55 495 40

Sir your daily profit from coke (in Peak season) = Rs. 154

Profit per month (in Peak season) = Rs. 4620

Profit of whole season = Rs. 13860

(Because the peak season for Coke is only of 3 months)

Profit of rest of the 9 months = Rs. 20790

38

(Because as per the Coke assumption income in the off season is decreased by half in comparison to the Peak season)

Profit of whole year = Rs.34650

Your investment = Rs. 1913

Your ROI = 34650 * 100/1913

= 1811.29%

Shopkeeper – But I do not think this much will work what about those stuffs that needs to support trading of Coke and I have to provide them like electricity, ice etc.

Salesperson – Sir that’s a really nice question, we can understand your anxiety and we have to offer much more for this. We have minimum Rs. 10 offer on 200 and 300 ml and Minimum Rs. 20 on Pet bottles. More over if you are keeping your refrigerator for the storage purpose of Coke if will be all right as the refrigerator can work by consuming power as low as 2 units per day which will cost you Rs. 8 per day.

So, what you have to say about our offer?

Shopkeeper – Yes, I think it will be a nice idea to accept your offer.

Salesperson – Thank you sir and Congratulation (Shaking Hands) I will be dropping my products within 10 minutes as I have the carrying vehicle with me and within next 15 minutes you are all set to go for selling Coke.

On some shops we set refrigerators and to keep a refrigerator we need to collect 1 photo copy of Voter ID card or Rashen Card, 1 photo copy of electricity bill and 1 passport size photo of shopkeeper.

39

Profile of the area

Tedi Pulia

Jankipuram

Kursi Road

40

Work done

I. 13/6/2012 to 18/6/2012

Visited five new outlet in Tedi pulia.

II. 20/6/2012 to 25/6/2012

Visited five more outlet in Tedi pulia & Jankipuram.

III. 26/6/2012

Meeting day: work done in two days presented in front of mr. chitresh

tiwari(training guide).

IV. 27/6/2012 to 2/7/2012

Visited five more outlet in kursi road.

V. 4/7/2012 to 9/7/2012

Visited five more outlet at Jankipuram.

VI. 10/7/2012

Report given to mr. chitresh tiwari and he had given us 15 day time to

prepare a report on the topic given to us.

41

Number of Clients

• Total 20 retailers such as FMCG Outlet, Beverage & restaurant,photo studio,service centre,sweet shop,cyber café, mobile shop , of Tedi pulia,jankipuram,kursi road were considered for the new oultlet opening.

42

RETAILERS INFORMATION FORMAT

• Name of outlet

• Contacted person name

• Address

• Contact number

• Type of outlet

• Status

• Date

• Remarks or Response

43

Name of outletContact Person's Address Contact

Type of Outlet

Remarks

Name

Pawan General StorePawan Rajput

529/223,Rahim nagar, Mahanagar

9335693632 FMCG yes

Uma Cosmetics Shringar Mahal

Mohd. Asfaq

Near Hdfc Atm, Khurramnagar Cosmetics no

Vikasnagar

V.S. Cyber Junction Ajay Singh Bajrang Plaza,sector-8991946

8504Cyber Café yes

Cyber JetPraveen Dubey

Arif Chamber,lekhraj panna

9415549900

Cyber Café yes

ADS studio & Noor Communication Noor Khan

Arif Chamber,lekhraj panna

9839487473 Colour Lab no

Combing Attraction S.K. SinghBeside Farabi Resturent

9415424451

Mens Saloon

May be

Madhur EnterprisesPankaj Pandey 6/663 sector-6

9935153217

Communication

May be

Skylink CommunicationMohd.Ayy

ub7/616 near Electricity House

9838587903

Communication

May be

Yash Stationery & Photocopy

Santosh Gupta

7/616 near Electricity House

9807415744 Stationery no

Cyber WorldAshok Yadav

Arif Chamber,lekhraj panna

9452832756

Cyber Café no

Mohini CommunicationNaveen Sinha

Infront of RLB, Sector-3

9532606060

Communication no

Khurram Nagar

Anam business centreAfjzal-ur-rehman

Near khuraam nagar chowki

9415075324

Cyber Café yes

Lay medical store Dinesh gupta

Near khuraam nagar chowki

9936823327 Chemist no

M.S. Communication & Cyber

Mohd. Shadab

A-2, Ghandhi Colony, Abrarnagar

9889844380

Cyber Café no

Azim Hotel Mohd Azim Abrarnagar

9839278275 Hotel yes

Retailer information

44

ANALYSIS & INTERPRETATION

• WHAT WAS THE RESPONSE OF REATAILER FOR OYA?

No. Of Respondants Percentage

Yes 5 33.00%

No 7 47.00%

May be 3 20%

33%

47%

20%

No. Of Respondants

YesNoMay be

33% of the retailers said that they require OYA.

47 % do not require OYA.

45

24% may be they can think in future.

FINDINGS

More than 47% % retailers were not happy with the schemes and services offered by

Coca Cola.

Not much retailers were satisfied with OYA.Only 24 % said that they will take

OYA,which % is below .

24% retailer are in state of conflict whether they should take it on this season or on

next season.

In Horizontal Expansion OYA scheme has been used before also but with different

crates scheme in past year.

The retailer who where interested in the schem

Pawan General Store

V.S. Cyber Junction

Cyber Jet

Anam business centre

Azim Hotel

46

SUGGESTIONS Company should convince retailers to have promotional tools decorating with coke

products and should tell them why these elements are important and how company as well as Retailers is getting benefit of using these activation elements.

Company should focus more and more on E&D Outlet because most of the E&D outlets don’t have promotional tools of the company and overall average score of these outlets is very less.

Company should reframe the Flange to an attractive and big size because the current look and size of Flange is not attractive and fail to draw attention of the population.

Overall service should be improved because many of the retailers are not satisfied with company service.

Company must provide free chilling equipment to the outlet where needed and also company should work out on the complains of Retailers.

The Company should measure Retailers satisfaction regularly and should maintain proper communication with them.

Company can increase the sales when it considering more on retailers, their suggestions or complaints about service or product so that necessary action can be taken.

Review meeting should be often held so that the working pattern of the executives can be checked and improved if needed.

Company representatives should visit retailers and should make a long-term relationship with retailer so that they can push the product.

Distributers should be convinced to pass the incentives to the retailers so that they are motivated to promote this brand.

Increase the number of dealers and retailers as this will help in making high sales volume.

Now company should launch new taste of soft drinks like recently launched Minute Maid & also launched new product in another flavor.

In winter Season Company should give more discount & schemes to retailers so that they sell more our product.

47

Conclusion

As far as journey with the company is concerned, I grasped lots of knowledge

within two months Because many of the company officials has assisted and

given me the valuable notes and experience of their life.

The primary objective of the my research is to analyze the horizontal expansion

strategy of Coke and at the end of the research I found that there is requirement

of changing the strategy for acquiring new customer for Coke but company

should take care of its existing customer because they are the main instrument

of promotion for any company so old customer should be fully satisfied with

the company.

48

References

49

I have used following resources to prepare this study report to make it more accurate and

confidential-

Serial no

Source of information

Name Designation Organization’s/writer’s name

1. Websites

www.cocacola.com

www.cocacolaindia.com

www.google.com

2. Guidance personalities

Dr.Adeel maqbool

Mr. Chitresh Tiwari

H.O.D, Dept. of Management &

Research

Marketing Execution Manager

Integral University

Advance Sales & Service Pvt. Ltd.

3. Books Marketing Research

Marketing Management

C.C.Berry

Philip Kotler

50

Annexure

51

RETAILERS INFORMATION

Name of Outlet……………………………………………………………………………………………………..

Contact Person’s Name………………………………………………………………………………………..

Address…………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………….

Contact No…………………………………………………………………………………………………………….

Type of Outlet………………………………………………………………………………………………………

Status…………………………………………………………………………………………………………………...

DATE………………………………………

REMARKS…………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………

SURVEYOR DETAILS

GROUP LEADER: FARHAN AHMAD

NAME ……………………………………………………………………………………….

INSTITUTION: INTEGRAL UNIVERSITY

CONTACT NO…………………………………………………………………………….

SIGNATURE……………………………………………………………………………