PROJECT REPORT ON ADVERTISING & PROMOTIONAL STRATEGIES AT Hindustan Beverages Pvt. Ltd.

IN PARTIAL FULFILMENT OF THE REQUIRMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO: Dr. Darshneel Grobar IIET, BAREILLY

SUBMITTED BY: RAJ KUMAR ROLL NO. 0719170041

INVERTIS INSTITUTE OF ENGINEERING AND TECHNOLOGY BAREILLY

TO WHOM IT MAY CONCERN

This is to certify that Mr. RAJ KUMAR student of MBA 3rd semester in our institute has successfully completed his project entitled Advertising and promotional Strategies for the partial fulfillment of the Master Of Business Administration Degree.

( Mr. Manish Gupta ) MBA coordinator IIET, Bareilly

------- ( Dr. darshneel grover) Project Guide IIET, Bareilly

PREFACE

In this era of growing professional and development of the new era concept and Industries, education is not complete with the theoretical knowledge of the lecture theater. One need a practical experience to identify how the management concepts are helpful in managing the organization being an MBA student. This report is the outcome of the Hindustan Coca Cola Beverages Pvt. Ltd. This project proved very beneficial for me to understand the organizations, their operation as well as help in knowing whole the advertising and promotional activities are done. This project well proved beneficial for our future managerial and professional life, also help me to learn the real environment of business operation which provide us a vast exposure to a management student.

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 extra special 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. First of all I would like to extend my he artful gratitude towards my father Mr.

NATTHU LAL and my family who had given there unconditional support as far
as my project is concerned and for constant guidance , motivation and assistance while I was working on the project for providing me all necessary information and kind support and guidance. I would also like to owe my special thanks to Dr.Darshneel grover (project

guide) for providing me valuable ideas and suggestions which enabled me to

prepare this report . He has been a great source of inspiration and motivation. This project would not have been possible without the constant & consistent support of the placement cell of INVERTIS INSTITUTE OF ENGINEERING AND TECHNOLOGY, BAREILLY.

CONTENTS S No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Heritage Promise About The Company Coca Cola Advertisements Environment Policy Code of Business Conduct Brands Objectives Research Methodology Findings Before Pilot Activity Budget Findings and Analysis After Phase I Before v/s After Learnings Conclusion Bibliography

TOPIC
Executive Summary

PAGE No.
5 9 11 12 18 20 24 26 34 36 62 67 69 72 75 77 80

EXECUTIVE SUMMARY

The project is the direct test of the promotion of a new scheme which is solution to the problem company is facing. The problem is of low incidence of coca cola India soft drinks in its E & D channel with respect to the other beverages offered by the outlet. The probable alternatives to the problem that were discussed are: 1. Value for money with internal activation. 2. Bill Buster with internal activation. 3. Bill buster with PITA model. As the value for money (combo) was not working for the customer, consumer and the company. We decided (company) to come up with a new scheme which would be in interest of all i.e. the consumer, the outlet and the company and hence bill buster came into the picture. The value for money is basically the scheme which was used by the company previously. In this the consumer was offered a coke with the food item. The basic problem with this was that it was very rigid and the consumer was not flexible enough to choose. For example if an outlet is offering 50 food items the combo can be made with maximum 10 items. So the consumer has to go for that particular combo which

makes his choice rigid moreover if the number of combos were increased it will create an added confusion in the mind of the consumer. The bill buster was introduced to make the consumer happy buy providing him that extra flexibility to choose. According to BILL BUSTER scheme the consumer will get a coke at discounted price (depending on the outlet).If he takes food of certain specified bill value. For example if we run a scheme of 100 for 2 then in that outlet if the billing value touches Rs. 100 then the consumer can add a coke by paying Rs. 2 extra. This scheme was in the favor of all. The consumer had an extra flexibility to purchase any item of his choice and still get advantage of adding a coke at a discounted price. The outlet had the benefit because due to3 this scheme his bill size was increasing as well as the footfall in his outlet increased. The company benefited as its incidence increased which was the main aim of the promotion. For introducing this scheme incidence rate before the promo was calculated. For this we personally visited the outlets and studied their bill books, the outlets where bill books were not available we used two methodologies; firstly we spoke to the person at the counter and the crew of the outlet,

Secondly we used observational method i. e we observed the proceedings in the outlet for at least 6 hours in a day to come out with a conclusion of the incidence of the outlet. All these findings before the research were necessary because according to these figures we could identify the problem and came out with a useful solution. For example if we find that the average bill size of the outlet is 60. Then we pitch for a 75 bill value scheme. Because we found out that the consumer will only increase his bill value by 20 A to 25% to add coke for a discounted value. So if we pitch in for Rs 75 the consumer can think of increasing his bill by Rs 15 to add a coke for discounted value. He will not increase his bill by more than that value.

In the first phase when we were pilot testing the promo the outlet was being supported by the company i.e. the bottle which the outlet used to sell in the promo he was being reimbursed Rs 5 on each bottle. This was done by the company so that the outlet does not fell that he is suffering a loss and since the company was also not sure that the scheme would work or not the company did not want the outlet would be at a loss. The company also supported the outlet with all the marketing elements which were required to promote the scheme, a promoter
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was also provided at each outlet running this scheme. To explain this concept we also designed a profit calculator and a profit story. We decide to choose bill buster with PITA model.

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INCIDENCE RATE:

Incidence rate is the total no. of bills with coke divide by the total no. of bills in a day, in particular outlet, multiplied by 100

TOTAL NO. OF BILLS WITH COKE ORDERED TOTAL NO. OF BILLS

x 100

AVERAGE BILL SIZE:

The average bill size is the total sale in a day divided by the total no. of bills.

TOTAL SALE TOTAL NO. OF BILLS

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12

HERITAGE COCA COLA INDIA

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14

ABOUT THE COMPANY

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Did You Know? The Worlds Largest Beverage Company

While much of the world has changed since 1886, with the old giving way to the new at almost daily strokes, what has withstood the test and taste of time, binding the young and old to enjoy their moments of simple pleasure and eternal joy is the magic of CocaCola. And this year, consumers the world over will reach for products of The Coca-Cola Company more than a billion times every single day. The world s largest beverage company has come a long way since its modest beginnings more than a century ago...

Born In a Kettle Charming the World Forever

John Stith Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. It was May of 1886 when the pharmacist concocted a caramelcolored in a three-legged brass kettle in his backyard.
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He first "distributed" the new product by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup, producing a drink that was proclaimed "Delicious and Refreshing." John Pembertons partner and bookkeeper, Frank M. Robinson, suggested the name and penned "Coca-Cola" in the unique flowing script that is famous worldwide today. Mr. Robinson thought "the two Cs would look well in advertising." In 1886, sales of Coca-Cola averaged nine drinks per day.

The Growing Corporate With An Ever-Refreshing Drink

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That first year, Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the number one soft drink brand ever since. For his efforts, Pemberton grossed ------ $50 and spent----- $73.96 on advertising. By 1891, Atlanta entrepreneur Asa G. Candler had acquired complete ownership of the Coca-Cola business. With in four years, his merchandising flair helped expand consumption of Coca-Cola to every state and territory. In 1919, The Coca-Cola Company was sold to a group of investors for---- $25 million. Robert W. Woodruff became president of The Coca-Cola Company in 1923, and his more than six decades of leadership took the business to unrivaled heights of commercial success, making Coca-Cola an institution the world over.

Know About Our Global Bottling System

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Today, our products reach consumers and customers around the world through a vast distribution network made up of local bottling companies. These bottlers are located around the world, and most are independent businesses. Using syrups, concentrates and beverage bases produced by The Coca-Cola Company, our global bottling system packages and markets products, then distributes them to more than 14 million retail outlets worldwide. The Coca-Cola Company is committed to assisting its bottlers with the functions of an efficient bottling operation and initiating quality systems to ensure the highest quality products for our consumers.

Know the Bottling History of Coca-Cola

Coca-Cola began as a fountain product, but candy merchant Joseph A. Biedenharn of Mississippi was looking for a way to serve this refreshing beverage at picnics. He began offering bottled Coca-Cola, using syrup shipped from Atlanta, during an especially busy summer in 1894. In 1899, large-scale bottling became possible when Asa Candler granted exclusive bottling rights to Joseph B. Whitehead and Benjamin F. Thomas of Chattanooga, Tennessee. The contract marked the beginning of The Coca-Cola Company s unique independent
bottling system that remains the foundation of Company soft drink operations.

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Coca-Cola Bottles As Memorable As The Design

Back then, soda bottles were all very similar. And Coca-Cola had many imitators, which consumers would be unable to identify until they took a sip. The answer was to create a distinct bottle for Coca-Cola. As a result, the contour bottle for Coca-Cola with the shape now known around the world was developed in 1915 by the Root Glass Company.

Coca-Cola Gets The First Change Of Taste in 1886

In 1985, a new cola emerged from laboratory research. Through internal evaluations and thousands of blind taste tests, consumers said they preferred it over both Coca-Cola and its primary competition. As a result, in April 1985, The Company proudly introduced the new taste of Coke - the first change in the secret formula since the product was created in 1886

Trademark Registration of Coca-Cola

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The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in 1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers everywhere, was granted registration as a trademark by the U.S. Patent and Trademark Office in 1977, an honor awarded very few packages.

Extension Of The Most Cherished Trademark

In 1982, The Coca-Cola Company introduced diet Coke to U.S. consumers, marking the first extension of the Company s most precious trademark to another product. Later years saw the introduction of additional products bearing the Coca-Cola name, which now encompasses a powerful line of cola products.

Coca-Cola Classic Ruling Since 1886

The launch of Coke with the new taste took place in the United States and Canada. Consumers responded with an unprecedentedand now famous-outpouring of loyalty and affection for the original formula. In July 1985, the original formula of Coca-Cola returned as Coca-Cola classic. In 1986, Coca-Cola classic became, and still remains, the nation s top-selling soft drink.

Our Trademarks The Worlds Most Valuable Assets

21

Our most valuable assets happen to be the trademarks we possess. For Coca-Cola, the most drunk soft drink on earth is one of the world s best-known and most admired trademarks, recognized by more than 90 percent of the worlds population.

Interestingly, the world that is touched by our cherished drinks for every moment, the Coca-Cola trademarks happen not only to be our most valuable assets but of the entire earth.

Brings Back The Fizz To

India.

Coca-Cola, the corporate nourishing the global community with the worlds largest selling soft drink concentrates since 1886, returned to India in 1993 after a gap of 16 years giving a new thumbs up to the Indian Soft Drink Market. In the same year, the Company took over ownership of the nation's top soft-drink brands and bottling network. No wonder, our brands have Dr. John Stith assumed an iconic status in the minds of the Pemberton for the consumers.
first time produced the syrup for CocaCola on May 8, 1886

A Healthy Growth To The Indian Economy

Ever Since, Coca-Cola India has made significant

investments to build and continually consolidate its business in the

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country, including new production facilities, waste water treatment plants, distribution systems and marketing channels.

Coca-Cola India is among the countrys 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.
A Pure Commitment to The Indian Economy.

The Company has not only shaked up the Indian carbonated drinks market, and given consumers the pleasure of world-class drinks to fill up their hydration, refreshment & nutrition needs but has also been instrumental growth to job in giving an exponential opportunities. Creating Enormous Job Opportunities With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through our vast procurement, and distribution supply system.

The vast Indian operations comprise 25 wholly-owned- companyowned bottling operations and another 24 franchisee-owned bottling operations. also That apart, a a network of
23

of

21 for

contract-packers the Company.

manufactures

range

products

On the distribution front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian cities constantly keep our brands available in every nook and corner of even the countrys remotest areas.

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Coca-Cola Advertisements Its The Real Thing

Advertising has played an important role in the success of our products since our first newspaper ad in 1886, which read, "CocaCola. Delicious! Refreshing! Exhilarating! Invigorating!" The Company uses advertising to trigger desire as often and in as many ways as possible. Throughout the years, slogans for CocaCola have always been memorable. Here are some highlights:

YEAR
2007

TAG LINE
sabka thanda ek

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2005 2003 2000 1993 1990 1989 1986 1982 1976 1971 1969 1963 1959 1944 1942 1936 1929

piyo sar utha ke thanda matlab coca cola Coca cola enjoy Always Coca cola Can t Beat the Real Thing Can t Beat the Feeling Red, White and You Coke Is It Coke Adds Life I d Like to Buy the World a Coke It s the Real Thing Things Go Better with Coke Be Really Refreshed Global High Sign It s the Real Thing It s the Refreshing Thing To Do The Pause That Refreshes

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Fine illustrations by noted artists, including Norman Rockwell and N. C. Wyeth, were the hallmark of early campaigns in premier magazines. Artist Haddon Sundblom s portraits for holiday ads, which began in the 1930s, helped mould the national image of a red-suited Santa Claus. Fresh, creative and tasteful, advertising images for Coca-Cola have always set a high standard of quality for other products around the world. The Company recognizes that Coca-Cola belongs to the billions of Consumers in every corner of the globe who have chosen it as their favorite soft drink. Our advertising reflects that special relationship between consumers and the simple moments of pleasure they have come to associate with Coca-Cola.

Indian Advertising Award

In India too, the Companys thrust has always been on reaching the core of the consumers heart through advertising excellence. In fact, we have produced some of the most memorable campaigns of the times. Consequently, in early 2003, Coca-Cola India collected Advertiser of the Year and Campaign of the Year awards for the Thanda Matlab Coca-Cola all-media campaign.

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ENVIRONMENT POLICY

We at Coca-Cola India are in the business of beverages that refresh people. We will carry out our operations in ways that Protect, Preserve and Enhance the Environment we work in. Our activities are guided by Coca-Cola EKO system, which provides a framework to transform this principle in actions.

Towards this objective, it shall endeavor to:

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1. Establish, maintain and operate facilities to comply with all applicable Environmental Safety and Health laws, Statutes and Consents. 2. Formulating sound environmental objectives and targets and integrate a continuous process review in all essential elements of corporate management. 3. Conservation of natural resources specifically in water, energy and fuel by continually improving its usage and reducing wastage. 4. Working as catalyst to enhance collection of post consumer PET bottles through awareness programs and synergizing relevant agencies for getting better pricing to the consumer. 5. Seek co-operation with Public, Private and Governmental Organizations in identifying solutions to relevant environmental issues. 6. Advertising initiatives are to be critically evaluated while advertising in eco-senstive areas; not put advertisement on Historical Monuments, Religious, Political Buildings & Structures and other specially protected and sensitive areas. 7. Using cooling equipment with environmentally friendly

technologies.
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8. Managing fleet operations in a manner to minimize environmental impacts by ensuring good maintenance, improving & tracking fuel efficiency and effectively managing wastes. 9. Ensuring Procurement policies that consider the environmental impact of packaging materials and all direct and indirect process aids used within the operation. 10. Ensuring all operations implement EKO Management System and requirements 2004. This policy has been communicated to all associates of Coca-Cola India to ensure compliance and shall be made available to public and interested parties on demand. under ISO 14001 before December

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CODE OF BUSINESS CONDUCT

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To reaffirm our commitment to ethical behavior as an organization and as individuals, we issued a revised code of business conduct in 2002 to every employee worldwide. This code continues to serve as a guide to our actions, advancing and protecting our core values of Honesty, Integrity, Diversity, Quality, Respect, Responsibility and Accountability

It presents the information in clear, easy-to understand terms, adding procedural guidelines that establish steps for investigating and addressing possible violations of the code. It also extends its scope to the conduct of company directors, as well as employees and officers. These changes and additions make The Coca-Cola Company Code of business conduct a powerful resource for protecting our Companys reputation for integrity.

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BRANDS

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SABKA THANDA EK

123-

The world's favorite drink. The world's most valuable brand. The most recognizable after OK. has a truly remarkable heritage. From a humble beginning in word across the world

1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic beverages in the world. In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation. Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the
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Coca-Cola Cup in Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had entered the youth's vocabulary. In 2002, Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it India's favorite soft-drink brand. In 2003, Coke was available for just Rs. 5 across the country and this pricing initiative together with improved distribution ensured that all brands in the portfolio grew leaps and bounds. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past and today, its brand ambassadors are Aamir Khan and Hrithik Roshan

TASTE THE THUDER

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Strong Cola Taste, Exciting Personality

Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.

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Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993.

Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst". Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends

FRESH HO JAYO

Lime n' lemoni Limca , the drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst
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choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavor soft drink in the country. The success formula? The sharp fizz and lemoni bite combined with the single minded positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca and walk away a new person.

CLEAR HAI

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Worldwide Sprite is ranked as the No. 4 soft drink & is sold in more than 190 countries. In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood for a straight forward and honest attitude. Its clear crisp refreshing taste encourages the today's youth to trust their instincts, influence them to be true to who they are and to obey their thirst.

YARRI DOSTI TAAZA MAZZA

Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit juices and was available throughout the year.

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In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the fruit drink category. Over the years, brand Maaza has become synonymous with Mango. This has been the result of such successful campaigns like "Taaza Mango,Maaza Mango" and "Botal mein Aam, Maaza hain Naam". Consumers regard Maaza as wholesome, natural, fun drink which delivers the real experience of fruit. The current advertising of Maaza positions it as an enabler of fun friendship moments between moms and kids as moms trust the brand and the kids love its taste. The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza"

BOOND BOOND MEIN VISHWASS

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Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself. The importance of water can never be understated. Particularly in a nation such as India where water governs the lives of the millions, be it as part of everyday rituals or as the monsoon which gives life to the sub-continent. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with the assurance of safety from the Coca-Cola Company. That is why we introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our product. That's why we go through rigorous testing procedures at each and every location where Kinley is produced. Because we believe that right to pure, safe drinking water is fundamental. A universal need, that cannot be left to chance.

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OBJECTIVES

The main objective of the promo was to increase the incidence rate. The company were incurring huge amount of costs in promoting the value for money but there was no fruitful result as the incidence was not increasing, so they wanted to have a replacement for that and they also wanted to increase the incidence of coca cola compared to its competitors( lassi, juice, other beverages etc.). The promos main aim was to give a benefit to all the parties involved i.e. the consumer, the outlet and the company.

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The following were the main objectives of the promo:

123To increase the incidence rate of coca cola India Soft Drinks. To associate food with coca cola. (food tastes great with thanda) To increase profitability of the outlet.

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RESEARCH METHODOLOGY

To get a reporting any particular area; research is required & that research is being done through data collection . Datas could be collected through its sources such as 1Primary source

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2-

Secondary source

I have gone through primary & secondary source of data collection while preparing this project report and make a questionnaire for collecting primary data collecting in whole area market of soft drink., Firstly go to in retail shop, Restourent and mall in Bareilly in Rajendra nagar and serch shop who shop keeper sales soft drink as like China Toun, Kips Confectiory, Gogul Mega Mart etc.

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FINDINGS BEFORE PHASE 1: Combo VFM Outlet Name Incidence Before Offer Bite & Sip Chattisgarh N Paul 12% 12% 13%

Before Total No. Bills 90 45 110 Avg. Bill Size 50 60 50

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Chowdhury Sweets Laguna Sizzlers

14% 11%

115 60 This was the actual shape of

55 110

the outlets before the pilot test. New Zaika 11% 17 135

Bill Buster (Add a Coke) Outlet Name Before

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Incidence Before Offer Akash deep Bengal Caf Gupta Sweets Hydrabadi Biryani J&K Stall JJ Food Stall Kwick Bite Manipur stall New Prem Dhaba Odeon Sweets Orissa Stall Punjabi Food Court Rajinder xpress Singla Sweets Tibet Kitchen 11% 10% 12% 12% 11% 12% 12% 18% 12% 11% 12% 14% 8% 11% 11%

Total No. Bills 110 120 105 50 55 300 50 100 70 135 30 80 130 65 45

Avg. Bill Size

90 65 60 65 65 93 100 63 60` 65 75 55 225 60 90

Findings before the Promotion:

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1. According to the consumer, value for money was rigid in terms of offerings. 2. The incidence level of coca cola was low i.e. 12% - 20%. 3. The value for money scheme was not performing as expected.

BUDGET FOR THE PROMOTION

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Element

Quantity 20000

Cost

Special Instructions Please see Sheet 2 For calculation and 100000 600000 10000 12000 1000 1000 20000 54000 6000 Estimation 15 Promoters, 3 Supervisors, for 30 days digital print communication-generic digital print communication-generic digital print communication-generic digital print communication-generic digital price-digital communication digital print communication-generic

Liquid Amount Promoters Cost A4 print Combo Print (1/2 price & OBM) Open close Pamhplet (1000/outlet) Menu cards (30/outlet) tent Cards

Bottles for 1 month 100 50 25 25 20000 600 5000

Total Cost EnD Promo First Phase

804000 295960

1099960

PILOT ACTIVITY - I

PROCEDURE 53

Number of Outlets: 15

Revenue Sharing Model: A revenue sharing model was followed in the first stage to Successfully implement the Program, and To sell the concept to the retailer

OFFER I (Coke for Rs. 2 on bill value of Rs. Consumer Pays HCCBPL Rs. 5.00 75) Rs. 2.00

OFFER II (Coke for Rs. 5 on bill value of Rs. 150) Rs. 5.00

Rs. 5.00

Retailer

Rs. 3.00

Rs. 5.00

COST STRUCTURE PER OUTLET:

Pilot Activity Phase one EnD Promo (Value Deals) Cost per unit Units per Elements A shaped Standee (Rs.) 2,644
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outlet 1

Total Cost (Rs.) 2,644

Wall Hanging Combos L Shaped utility Board Open / Close Signage Inserts for elements Wooden Tent Cards Menu Cards Promoter Total Cost Per outlet 867 698 602 45 310 94 1,265 1

867 698 1 602 1 405 9 5 30 15 1,550 2,820 18,975 28,561

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PITA MODEL
Number of Shoppers or Consumers in Given Universe % of population that buys our product Amount in volume brought per transaction Amount of profit in value per transaction

Gross Profit (Rs)

Population (Traffic)

Incidence

Transaction X Size (ltr.)

Average Profit (Rs per ltr)

Cooler at the Entrance Standee, sign At the entrance Combo Board at the Entrance

Cooler in Prime position Cooler pure And clean Rack display

Rack display Cooler top Display 300ml instead of 200ml 600ml and 2 ltr PET Availability Cooler in Prime position

300ml instead Of 200ml Mobile PET Availability 2 ltr PET Availability Can availability Mazza 250ml, 600ml and 1.2 ltr availability

Shelf display

Combo boards

Table activation Counter top Display

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MARKETING ELEMENTS

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FINDINGS AND ANALYSIS After pilot 1:

This is the result which we achieved after the completion of phase 1. there was a drastic change in the incidence from before to after. So bill buster was found out to be a success

Combo VFM To Outlet Name Incidence % Bite & Sip Chattisgarh N Paul Chowdhury Sweets Laguna Sizzlers New Zaika 25% 22% 24% 21% 19% 20% Total No. Bills 85 47 119 113 62 17 Avg. Bill Size 55 66 56 65 118 150

Bill Buster (Add a Coke) Outlet Name Incidence % Akash deep Bengal Caf Gupta Sweets Hydrabadi Biryani J&K Stall JJ Food Stall Kwick Bite Manipur stall New Prem Dhaba Odeon Sweets Orissa Stall Punjabi Food Court Rajinder xpress Singla Sweets Tibet Kitchen 63% 68% 68% 72% 76% 72% 58% 74% 58% 50% 73% 44% 59% 54% 51% Total No. Bills 130 135 114 61 60 358 55 118 78 167 35 92 140 70 50 Avg. Bill Size 112 90 87 84 81 115 115 95 84 73 88 70 275 80 120

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BEFORE V/S AFTER

Growth in Avg. Bill

Value

Growth in Avg. No. of Bills

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BEFORE V/S AFTER ANALYSIS

BILL BUSTER( Add a coke)

Incidence level

IN C ID E N C E L E V E L
80% 70% Rate of incidence 60% 50% 40% 30% 20% 10% 0% A k as h deepB engal Caf G upta S weets O utle t Hy drabadi J& K S tall B iry ani 11% 10% 12% 12% 11% 63% 68% 68% 72% 76%

B efore the prom

A fter the prom o

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IN C ID E N C E R AT E
80% 70% Level of incidence 60% 50% 40% 30% 20% 10% 0% JJ Food S tall K wick B ite M anipur s tall New P rem Dhaba Outle t Odeon S weets 12% 12% 18% 12% 11% 72% 58% 74% 58% 50%

B efore the pro

A fter the prom

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IN C ID E N C E R AT E
80% 70% Level of incidence 60% 50% 40% 30% 20% 10% 0% O ris s a S tall unjabi F ood Rajinder P Court x pres s O u tle t S ingla Tibet K itc hen S weets 12% 14% 8% 11% 11% 44% 73% 59% 54% 51%

before the pr

A fter the prom

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Average bBll size(bill buster)

AV G. B IL L S IZE
120 100 80 Bill size 60 40 20 0 A k as h deepB engal Caf G upta S weets O u tle t Hy drabadi J& K S tall B iry ani 90 65 112 90 60 87 65 84 65 81 B efore the prom o A fter the prom o

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AV G . B IL L S IZE
140 120 100 Bill size 80 60 40 20 0 0 JJ F ood S tallK w ic k B ite M anipur s tallN ew P rem D haba O u tle t O deon S w eets 93 115 115 100 63

95

84 65

73

B efore the prom o A fter the prom o

AVG. B ILL SIZE

300 250 Bill Size 200 150 100 50 0 Orissa Stall Punjabi Food Rajinder Court xpress Outle t Singla Sweets Tibet Kitchen 75 88 55 70 60 80 90 120 Before the prom o After the prom o 225 275

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Average footfall per day:

AV G . F O O T F AL L P E R D AY
160 140 No. of bills 120 100 80 60 40 20 0 A k as h deepB engal Caf G upta S weets O u tle t H y drabadi J& K S tall B iry ani 130 135 114 B efore the prom o 61 60 A fter the prom o

AVG. FOOTFALL PER DAY

400 350 No. of bills 300 250 200 150 100 50 0 JJ Food Stall Kwick Bite Manipur stall Outlet New Prem Dhaba Odeon Sweets 50 55 100 118 70 78 300 Before the promo After the promo 358

135

167

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AVG. FOOTFALL PER DAY

160 140 120 NO. of bills 100 80 60 40 20 0 Orissa Stall Punjabi Food Court Rajinder xpress Outlet Singla Sweets Tibet Kitchen 30 35 80 92 65 70 45 50 Before the promo After the promo 130 140

Note:
The average footfall increased by 6%n an average.

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VALUE FOR MONEY

Incidence level

IN C ID E N C E L E V E L
30% 25% Rate of incidence 20% 15% 10% 5% 0% B ite & S ipC hattis garh N P aul C how dhury Laguna N ew Zaik a S w eets S iz z lers O u tle t 12% 12% 13% 14% 11% 11% 25% 22%

24% 21% 19% 20%

B efore the prom

A fter the prom o

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A V G . B IL L S IZE
160 140 120 Bill size 100 80 60 40 20 0 B ite & S ipC h a ttis g a rh N P a u l C h o wd h u ry L a g u n a Ne w Za ik a S we e ts S izzle r s O u t le t 50 55 60 66 50 56 55 65 118 110 150 135

B e fo re th e p ro m

A fte r th e p ro m o

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AV G. FOOTF AL L P E R D AY
140 120 100 Bill size 80 60 40 20 0 B ite & S ip h attis g a rh N P a u l C h o w d h ury L a g u n a N e w Za ik a C S w e e ts S iz z le rs O u tle t 45 47 17 17 90 85 60 62 119 110 115 13 1

B e fo re th e p ro m

A fte r th e p ro m o

NOTE:
The increase in the incidence, average bill size and the footfall did grow, but in comparison to the bill buster it was low. So bill buster was considered a better option.

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VALUE FOR MONEY V/S BILL BUSTER

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% In c r e a s e in t h e in c id e n c e le v e l( v a lu e f o r m
1 2 0 1 0 8 .3 3 100 80 % increase 60 40 20 0 B it e & S i h a t t i s g aNr h P a u l C h o w d h u Lya g u n aN e w Z a ik a Cp r S w e e t s S iz z l e rs O u tl e t 5 0 .0 0 8 3 .3 3 8 4 .6 2 7 2 .7 3 8 1 .8 2 % In c r e a s e

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% increase
Ak

700% 600% 500% 400% 300% 200% 100% 0%

% Increase in the incidence( bill buster)

Outlet

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as Be h d n ee Gu gal p H y pt C a dr a S f ab w ad ee i B ts ir J& yan JJ K i Fo Sta od ll Kw S t a M i ck l l Ne an B ite w i Pr pur s e Od m D tall eo ha n ba Sw Pu nja Oris eet b i sa s F S Ra ood tal jin C l d o Si er x urt ng pr la es Ti Sw s be ee t K ts itc he n

% Increase

FINDINGS AND ANALYSIS

As the diagrams show that all the objectives of the promo were achieved and all the parties i.e. the outlet, the consumer and the company were all gaining from the promo. The incidence rate, the average bill size and the footfall also increased in the outlet. So all the objectives of the promo were achieved. The companys main objective was to find a replacement for the value for money and bill buster was found out to be the right replacement as all the indicators showed a positive result. A substantial amount of increase in the Incidence. From 11% to 69%. Substantial increase in the average bill value across the outlets from Rs. 65 to Rs. 95, an avg. growth of around 46% Increase in average number of bills in an outlet a growth of around 6%

When the pilot test showed that the bill buster was successful, then we needed to carry forward the activity and wanted to upscale it. So in the second phase it was decided that the company would not fund anything i.e. there would be no reimbursement from the company.

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KEY FINDINGS

Before The Promotion:

4. According to the consumer, value for money was rigid in terms of offerings. 5. The incidence level of coca cola was low i.e. 12% - 20%. 6. The value for money scheme was not performing as expected.

After Phase 1:

1. The incidence rate grew from a mere 12- 15% to 65 - 70%. 2. A substantial increase in the average bill value from Rs. 65 to about Rs. 95 i.e. 46% increase. 3. The number of loyal customer increased at the outlet. 4. Bill buster emerged as a tool to maintain better relationships with the customer. 5. Bill buster was found out to be more flexible than value for money. 6. It helped us to achieve the objective of associating food with thanda (coke).

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7. The scheme was found out to be beneficial for all i.e. the consumer. the outlet and the company. 8. Bill buster was found out to be a success as a replacement for the value for money (combo) deal. 9. But model where the company was reimbursing was not a self-sustainable model as reimbursement was not possible at the time of up scaling

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PHASE-2
After the pilot activity 1 was declared a success we decide\d to move to phase 2 of the project where in we wanted to increase the number of outlets to 300 . the activity was as follows:

Objective:

To make the PILOT I Project a self sustainable long term profit making proposition for the retailer.

A Self Sustainable Model

Consumer Pays Retailer HCCBPL Rs. 5 Contributes Balance Amount Incurs Only Marketing Expenses

To enter into phase two where there was no support provided HCCBPL to the outlet, we had to show the results of pilot activity to the outlets so that they get convinced and are ready to run the scheme. So we prepared: 1. A profit calculator 2. profit story

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COST STRUCTURE PER OUTLET:

Pilot Activity Phase II EnD Promo (Value Deals) Elements A shaped Standee Wall Hanging Combos L Shaped utility Board Open / Close signage Inserts for elements Wooden Tent Cards Menu Cards Pamphlets/ Handouts Promoter Total Cost Per outlet Cost per unit (Rs.) 2,644 867 698 602 45 310 52 0.572 10,000 Units per outlet 1 1 1 1 9 5 30 1,000 1 Total Cost (Rs.) 2,644 867 698 602 405 1,550 1,560 572 10,000 18,898

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PROFIT CALCULATOR:
For a scientific calculation to provide the retailer a high profit margin a Profit Calculator

PROFIT CALCULATOR

Selling Price: No. of Bills Consumer Pays (Rs.) : Retailer Pays (Rs.)

/ Day

Profit / Bill 32

Total 12 Profit /
7 Day 3,200 5

Regular Activity Increase in Bill Size :( Rs.) 80 Avg.

Profit Percentage (%) Incidence by 20% 20 Profit: (Rs.) BEFORE

100 100

32 39 32
39

3,340 80
40 32 115 35 3,730 46

Profit to Project Profitable bill the SE Additional size Per Profit Annum 1,152,00 --0 1,202,40 0 50,400

Variables: Can be changed by

during Promo Avg. Increase in Total Bill Size80 Incidence (20%) increased 30 amount110 Profit in bill and Footfall (10%) due to Promo profit (Rs) Surplus
Increase in bill Size

1,342,80 0

190,800

INCREASED PROFIT IN A YEAR

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PROFIT STORY
Objective: To convince a retailer for Bill Buster (Add a Coke) Scheme Achieve Rapport: Sir, based on my experience with other outlets, I am sure I will be able to make your selling offer more attractive, contributing to increase in your sale/income in the outlet and a larger base of loyal consumers. Could you devote few minutes for me? Benefit Statement: Would help you to earn an additional profit of Rs. 225,000 in a year Increase in the number of customers visiting the outlet (Population / Footfall) Will result in a large base of loyal consumers (Population) Attractive form of beverage selling that will trigger consumer purchase decision. (Incidence)

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Seeing Saving communication, the consumer perceives it as a promotion and buys products. (Transaction) Increase in bill value: Avg. bill value will go up which in turn will give you more profit and higher income. (Transaction) Complementary marketing promotion and materials to increase the brand value of your outlet (Activation). On our Pilot Study with other outlets we have seen an increase of average bill value by more than 40 percent and an increase in footfall by 20 percent.

Convey Solution Avg. bill size: Rs. 100 Avg. profit per bill: 25 percent Avg. number of bill in a day: 100
Profit Calculator I) Profit Due to Increase in Footfall Current Footfall Increase Footfall 100 110 Earns Profit Earns Profit Additional Profit Total Increase in profit in a year II) Profit Due to increase only in Incidence Does not go for Promo Opts for Promo 80 20 Earns Profit Earns Profit 25 37.5 Total Profit Profit Earned Total Profit III) Profit due to Increase in incidence & Footfall Does not go for Promo Opts for Promo 80 30 Earns Profit Earns Profit 25 37.5 Total Profit (Rs) Profit Earned 2,000 1,125 One Day One Day 2,000 750 2,750 One Day One Day One Day 2,500 2,750 250 90,000 Total Profit Rs. Total Profit Rs. 900,000 990,000

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Total Profit (Rs) Net Increase in Profit in a year (Rs) 225,000

3,125

One Day

*/ Calculations are on daily assuming that Rs. 100 bill size will be up scaled to Rs. 175, which will increase existing avg. profit by another 50 percent.

Deal With Objectives:

Sample statements answering Customers certain objections Place/ Locations: We have got materials for promoting the scheme to the consumers visiting your outlet and as well as surrounding places which in turn will help in promotion of your outlet. We can also place Tent Cards and Table Mats cum Menu Cards for the people sitting and ordering which will communicate the scheme The marketing elements promoting your outlet and the scheme will be placed at the consumers decision making zones. Effort: Time: We have got specialized team for installations of materials, at our disposable.

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I will not engage your stuff or crew members for the promotion. We will be providing you with a special Promoter for the Promotion Period who will ensure the successful launch of this promotion.

Money: I understand your fears concerning the lowering the price of beverages. But you will earn more through increasing transaction and increase in average billing. You trade turnover and profit will increase. Please have a look at the calculations once again. My other customers have also opted for this same promotion and price suggestion. I assure you, they are very happy with the decision they made. End Successfully Make sure you have conveyed the information. Sum up and confirm all the arrangements made while talking to the customer (Date and place of installation of marketing elements). Get the arrangement confirmation from the Customer. Make sure you keep to your promise.

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PROFIT STORY
(APPLYING THE PITA MODEL)

Objective: To convince a retailer for Bill Buster / Value Deal (Add a Coke) Achieve Rapport: Sir, based on our experience with other such outlets, I am sure I will be able to make your selling offer more attractive, contributing to increase in your sale/income in the outlet and a larger base of loyal consumers, which would help you to earn an additional profit of Rs. 200,000 in a year Could you devote few minutes for me? Benefit Statement: Increase in the number of customers visiting the outlet Will result in a large base of loyal consumers Attractive form of beverage selling that will trigger consumer purchase decision Seeing Saving communication, the consumer perceives it 86 as a promotion and buys products. Increase in bill value: Avg. bill value will go up

Population

(P)

Incidence

(I)

Transaction

(T)

Amount

(A)
MARKETING ELEMENTS A SHAPE STANDEE

1.

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2. Open- close signage

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3. all hangings

89

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4. L shape utility board & menu cards:

Menu Board

L Shape Utility with Promo Communication

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5. Promoter Led Crew Suggestive Selling

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FINDINGS DURING PHASE 2: Incidence Avg. Bill Value Total Bills (% of Bills on KO) Before During Growth Before During Growth Before During Akashdeep restaurant Kwick Bite Punjabi Food Court Madras Hotel Odeon Sweets 65 130 65 88 133 88 36% 2% 35% 80 115 135 94 125 92 18% 9% -32% 14% 12% 11% 41% 59% 40% 90 100 116 120 29% 20% 115 90 128 98 11% 9% 11% 12% 44% 52%

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Hydrabadi Biryani Grand Sindhi Restaurant Kripps Restaurant Hot & Spicey Cosy Restaurant Bengali sweets corner 38 FM Lounge Amarjyoti Restaurant Krishna Restaurant Gupta sweets Shriram sweets Kerala caf 65 650 250 200 160 110 110 77 842 245 223 181 112 112 18% 30% -2% 12% 13% 2% 2% 75 20 70 50 120 290 250 98 13 49 67 106 311 278 30% -37% -30% 33% -12% 7% 11% 15% 14% 12% 13% 12% 15% 15% 22% 43% 71% 32% 76% 42% 58% 105 120 75 160 125 135 86 190 19% 13% 15% 19% 50 50 100 45 32 64 114 44 -36% 29% 14% -2% 15% 10% 15% 15% 59% 40% 48% 58% 90 116 29% 90 89 -1% 12% 75%

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Findings during phase 2:

1. The incidence level was not as high in the second phase as was when the company was funding.

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2. The average bill size of the outlet is increasing

NOTE:
Now the company has decided to scale up the activity and launch it in Delhi

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LEARNINGS

Convincing skills

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Decision making ability Managing a team of supervisors and promoters Training and Motivating a team Implementing pilot test and scale up

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CONCLUSION
The pilot activity turned out to be a success and it was decided by the company to launch the scheme in the whole of Delhi. The bill buster with PITA model was found out to be the most effective of the three alternatives.

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All the three parties involved: 1. the consumer 2. the customer( outlet) 3. HCCBPL were at a profit and found the scheme to be very effective as the incidence, the avg. bill size and the footfall of the outlet went up. The future plan of the company is to launch the scheme as a replacement for the combos.

SCALE-UP PLAN
Capability team to do the training of SE and MDs, since program requires complete appreciation of Customer profitability

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Initially Channel Team and Capability team will increase the Outlet number to 100 by the end of July 2007. SE and MDs will witness the success stories in the territories and then they will replicate to scale up to 300 outlets by 2007 end on sustainable basis.

Need CCI support to keep the promoters for 1 month for each outlet First 15 days: Promotion of the Consumer Offer Next 15 days: Training of outlet crew members

We plan to add 50 new outlets every month for which we will need 50 Promoters for 1 year at a cost Rs. 10,000 per month (Total cost of Promoters per annum will be Rs. 6 million)

Also plan an annual target based QPS for each outlet under this program.

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BIBLIOGRAPHY

1. INTERNET
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www.coca-colaindia.com www.google.com

2. BOOKS
Marketing Management, Kotler.Philip, 12th edition, Pearson Education, 2007

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