Coca Cola Was the Purchase of Parley Brands
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SWAMI VIVEKANAND UNIVERSITY A PROJECT REPORT ON MARKETING STRATGIES OF TOP BRANDS OF COLD DRINKS Submitted in partial fulfilment for the Award of degree of Master in Management Studies UNDER THE GUIDANCE OF SUBMITTED BY Prof.SHWETA RAJPUT HEMANT SONI CERTIFICATE Certified that the dissertation title MARKETING STRATEGIES OF TOP BRANDS OF COLD DRINKS IN SAGAR is a bonafide work done Mr. HEMANI SONI under my guidance in partial fulfilment of Master in Management Studies programme . The views expressed in this dissertation is only of that of the researcher and the need not be those of this institute. This project work has been corrected by me. PROJECT GUIDE SWETA RAJPUT DATE:: PLACE: STUDENT’S DECLARATION I hereby declare that the Project Report conducted on MARKETING STRATEGIES OF TOP BRANDS OF COLD DRINKS Under the guidance of Ms. SHWETA RAJPUT Submitted in Partial fulfillment of the requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION TO SVN COLLAGE Is my original work and the same has not been submitted for the award of any other Degree/diploma/fellowship or other similar titles or prizes. Place: SAGAR HEMANT SONI Date: ACKNOWLEDGEMENT It is indeed a pleasure doing a project on “MARKETING STRATEGIES OF TOP BRANDS OF COLD DRINKS”. I am grateful to sir Parmesh goutam (hod) for providing me this opportunity. I owe my indebtedness to My Project Guide Ms. Shweta rajput, for her keen interest, encouragement and constructive support and under whose able guidance I have completed out my project. She not only helped me in my project but also gave me an overall exposure to other issues related to retailing and answered all my queries calmly and patiently. I take the pleasure to express thanks to all my colleagues for many useful discussions and cooperation during the course of the project work. TABAL OF CONTENTS Executive summary CHAPTER 1- INTRODUCTION CHAPTER 2- PROFILES OF THE ORGANIZATION CHAPTER 3- MARKETING STRATEGY CHAPTER 4- STUDY OF SELECTED RESEARCH PROBLEM TOPIC OF RESEARCH PROBLEM STATEMENT OF RESEARCH OBJECTIVES RESEARCH DESIGN AND METHODOLOGY Problem identification Scope of study Objective of study Research design Sampling plan Method of data collection Sources of data collection Limitations CHAPTER 8- ANALYSIS OF DATA CHAPTER 9- SUMMARY AND CONCLUSIONS CHAPTER 10-ANNEXURES EXECUTIVE SUMMARY From this project titled " MARKETING STRATEGIES OF TOP BRANDS OF COLD DRINKS " in colds drinks industry, I have learned a lot about real practical work being done in the market I have also watched & learned the practical applicability of the various things that we have studied theoretically. I observed on the basis of survey in SAGAR city that Coca-Cola lay emphasis on merchandising in order to become the No.1 brand in soft drink industry the report was finds out the availability of different flavor and packs. Cola-Cola adopt a good customer relationship management, it is focus on the, segment of the product because each segment is affected by different sets of factor which hamper or enhance sales. Each segment had its own Pros & Cons. So we have to understand the various segment of soft drink industry that which flavor is existing more in the market, Such as Thums-up strong brand of coke which is more popular in young generation. I also observe about fate dealer, sub dealer, monopoly counter & its marketing strategy. Such as fate dealer is influence wrong direction to the market. They are supply product at high margin with low scheme. The company is making all out efforts to quench the thrist of millions of people around the globe but thirst of the company to capture the globe should never be quench. A feeling of being satisfied should never be allowed to creep into the management as well as the rank and the profile of the company. SAGAR market being a gateway to the M.P. The efforts to capture the market completely should be the soul aim of management particularly in the light of the fact that a major bottling plant is situated in the area. CHAPTER 1 INTRODUCTION GENERAL INTRODUCTION ABOUT THE SECTOR Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. INDUSTRY PROFILE ORIGIN AND DEVELOPMENT OF THE INDUSTRY Soft drink industry scenario the world over is almost the same with two major players i.e. Pepsi Co. and Coca-Cola having the major thank in the pie. The other major player in the industry is Cadbury-Schweppes and some local player in individual countries. The major components of the industry consist of the concentrate manufactures, bottles and the sales and distribution network of the companies the rule and responsibilities of each of them are different. The major activity taken up by the concentrate manufactures relates to the production of the basic product which is battled by the battling plants mostly independents and subsequently sold through the established distribution set ups of the respective companies. Incidentally a lion‘s share of the total sales of the product of most of the companies is through fountain a sale which sums to be the most popular outlet in the western countries. Through in India fountain sales from a very insignificant part of the sales revenue. During the initial stag both soft drink majors used a network of independent bottlers to bottle and market their products. Independents bottling arose primarily because it was not possible to create an effective organization for operating a vertically integrated company with hundreds of geographically separated manufacturing unit and local delivery operations given the limited transportation and communication system of the time and the lack of sophisticated financial and management controls. Although Coca-Cola and Pepsi Co. are premier marketing companies the fundamental competitive advantage that allowed that to compete so effectively lies in their ability to operate through a very cumbersome distribution system. In India after the exit of coke in 1977 Parley and pure drinks controlled the Indian Soft Drinks market. By the end of 1970 Campa-Cola was practically alone in Cola market Parleys introduced Thums up in the beginning of 1980s. By the end of 80‘s Parley with Limca, gold spot and Thums up emerged as clear winner with around 60% market share. In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This proposal as rejected on the grounds that the import of concentrate could not be agrees and the use of foreign brand name was not allowed. In year 1988 Pepsi again floated a project this time in collaboration with Punjab agro Corporation (PIAC) and Volta‘s India Limited and succeeded. Finally in June 1990 Pepsi was launched in India under the brand name of ‗Lehar Pepsi‘. The most strategic step taken by Coca Cola was the purchase of Parley brands.