Professional Documents
Culture Documents
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CONTENTS
Chapter No. Chapter 1 Chapter 2 Topic
1.Introduction to the study 2.1 Problem statement 2.2 Objectives of the study 2.3 Scope of the study 2.4 Research methodology 2.5 Limitations
Page number
7- 9
10 11
Chapter 3
3.1 Company Profile 3.2 Product Profile 3.3 Review of literature Data Analysis and Interpretation 5.1 Findings 5.2 Suggestions 5.3 C onclusion Bibliography Questionnaire
12 - 21
Chapter 4 Chapter 5
22 -28
29 - 30
ANNEXURE
31 - 32
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INTRODUCTION
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CHAPTER 1
Pricing Strategies
Pricing is one of the four elements of the marketing mix, along with product, place and promotion. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies, depending on their own unique marketing goals and objectives
Penetration Pricing.
The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom and Sky TV. These companies need to land grab large numbers of consumers to make it worth their while, so they offer free telephones or satellite dishes at discounted rates in order to get people to sign up for their services. Once there is a large number of subscribers prices gradually creep up. Taking Sky TV for example, or any cable or satellite company, when there is a premium movie or sporting event prices are at their highest so they move from a penetration approach to more of a skimming/premium pricing approach.
Price Skimming.
Price skimming sees a company charge a higher price because it has a substantial competitive advantage. However, the advantage tends not to be sustainable. The high price
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attracts new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented. New products were developed and the market for watches gained a reputation for innovation.
The diagram depicts four key pricing strategies namely premium pricing, penetration pricing, economy pricing, and price skimming which are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing, and we cover them throughout the entirety of this lesson.
Psychological Pricing.
This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example Price Point Perspective (PPP) 0.99 Cents not 1 US Dollar. It's strange how consumers use price as an indicator of all sorts of factors, especially when they are in unfamiliar markets. Consumers might practice a decision avoidance approach when buying products in an unfamiliar setting, an example being when buying ice
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cream. What would you like, an ice cream at $0.75, $1.25 or $2.00? The choice is yours. Maybe you're entering an entirely new market. Let's say that you're buying a lawnmower for the first time and know nothing about garden equipment. Would you automatically by the cheapest? Would you buy the most expensive? Or, would you go for a lawnmower somewhere in the middle? Price therefore may be an indication of quality or benefits in unfamiliar markets.
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CHAPTER 2
2.2 Objectives
To study the problem of pricing strategies of coca cola company. To identify the parameters affecting the problem. To identifies the how much price the dealers charged from costumers.
How coca cola company fix pricing of products based on the cost or competitive price. To devise a plane for solution the stated problem.
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Primary data
The direct interview through questionnaire. Collected from consumers and dealers.
Secondary data
The secondary data collected from business magazines, Industry survey and Internet.
Limitations
This study is confined to in and around puttaparthi area only. There is possibility of sampling errors in the study. The questions included in the questionnaire may not be comprehensive.
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CHAPTER 3
The Coca-Cola Company profile
Profile
Type Traded as Industry Founded Founder(s) Headquarters Area served Key people Products Revenue Operating income Net income Total assets Total equity Employees Subsidiaries Website
Public NYSE: KO Dow Jones Industrial Average Component S&P 500 Component Beverage 1886 Asa Griggs Candler Coca-Cola headquarters, Atlanta, Georgia, U.S. Worldwide Muhtar Kent (Chairman & CEO) List of The Coca-Cola Company products US$48.01 billion (2012) US$10.84 billion (2012) US$9.01 billion (2012) US$86.17 billion (2012) US$32.79 billion (2012) 146,200 (Dec 2011)[2] List of The Coca-Cola Company subsidiaries Coca-ColaCompany.com
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too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the price of Coca Cola decreases people might get the impression that its quality is also low.
PROMOTIONAL PRICING POLICY Coca Cola has offered promotional prices very frequently. Especially on some occasion Coca Cola reduces its rates like in Ramadan Coca Cola reduces its rate unto 5 Rupees on 1.5 litter bottle. MARKET PENETRATION PRICING POLICY In an economy like that of Pakistan, consumers tend to switch towards a low priced product. Coca Colas objective is to target every consumer of the country so Coca Cola has to set its prices at such a level which no one can offer to its consumers. That is why Coca Cola charges the same prices as are being charged by its competitors. Otherwise, consumers may go for Pepsi Cola in case of availability of Coca Cola at relatively high price. DISTRIBUTION CHANNEL Coca Cola Company makes two types of selling Direct selling Indirect selling DIRECT SELLING In direct selling they supply their products in shops by using their own transports. They have almost 550 vehicles to supply their bottles. In this type of selling company have more profit margin. INDIRECT SELLING They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and Agencies to assure their customers for availability of Coca Cola products.
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Coca-Cola has very effective advertising campaign, its advertising also represent the US culture. By sponsoring different games and teams and also featured in countless television programs and films.
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Coke and its bottlers are among the world's top purchasers of citrus juice, coffee and sugar. Coke has started to work with the International Labour Organization's International Program on the removal of Child Labour. Weaknesses Coke is criticized for lofty levels of pesticides in its products, exploitative labor practices, environmental destruction, building plants in different countries those employed slave labor and monopolistic business practices. Less inventory turnover as compare to PepsiCo and product line restricted to the beverages only. By giving the distributing and bottling authorization of its own products, it results in dropping a major portion of potential revenue. Coke has been criticized for its aggressive marketing to children and suspected unfavourable health effects. Different studies has been conducted and found other drinks and Coke harmful if consumed excessively. In India Coca-Cola gaining negative publicity due to water issues, it resulted in lower growth and pitiable brand image. Lack of management enthusiasm for offering foreign products into U.S.A markets. Opportunities It is highly difficult for the new entrants to enter in the soft drink industry because of some factors such as brand image and loyalty, bottling network, advertising expense, retail distribution and fear of retaliation. Coke has significant opportunities within global supply chain to encourage and develop more sustainable practices to benefit consumers, customers and suppliers. While; it is still in the premature stages of exploring these opportunities and dedicated to the economic vitality and health of the farming communities our supply chain engages. Cock Bill & Melinda Gates Foundation and nonprofits Techno Serve initiated a partnership to facilitate more than 50,000 small fruit farmers in Kenya Uganda to increase their productivity and double their incomes by 2014. Coke can diminish the fear of substitute by diversifying (related or unrelated) by offering substitute products.
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World population is expected to grow at 8 billion 2025, and 9.2 billion by 2050. Nearly 99% growth will take place in developing countries. Changing consumer lifestyle; by becoming health conscious and preferring substitute products. Coke can relatively diversify and offering health conscious products. Coke promotes and support sustainable agriculture not only because it makes good business sense. Focusing on its advertising and differentiation can increase its profits. Bottled water consumption in increasing day by day, 11 percent growth is reported. Threats Pepsi is the major and primary rival of the Coca-Cola in the soft drink industry, Pepsi is 2nd in revenue behind the Coca-Cola, and also hit Coca-Cola in some markets. Its primary competitor PepsiCo is highly diversified by providing big range of food products. Central and South America Kola Real also known as Big Cola in Mexico is giving tough competition to Coca-Cola etc. Large numbers of substitutes are available in the market such as water, tea, juices coffee etc. Coca-Cola is facing different regulations and policies set by government in different countries. Low growth rate in carbonated drinks, which is recorded less than one percent in primary market of Coca-Cola. Changing consumer lifestyle; by becoming health conscious and preferring substitute products. Different studies has been conducted and found other drinks and Coke harmful if consumed excessively.
Dealers profile; k.Prabakar coca cola dealer, peddakummavari palli road, govinda peta puttaparthi, 515134
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Coca-Cola
Diet Coke Thums Up Sprite Fanta Limca Maaza Minute Maid Pulpy Orange Minute Maid Nimbu Fresh Minute Maid Guava Minute Maid Apple Minute Maid Mango Minute Maid Mixed Fruit Minute Maid 100% Juice Grape Minute Maid 100% Juice Apple Minute Maid 100% Juice Orange Burn Kinley Water Kinley Soda Schweppes
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All our products are manufactured in sites independently certified according to internationally recognized food safety management standards. Coca-Cola India has complied with all laws and regulations concerning the provision and use of our products and we take measures to ensure that compliance continues in the future too.
Risk Assessment and Mitigation: To implement food safety programs in manufacturing, warehousing and distribution facilities. Supplier Management: To ensure safety of raw materials, ingredients and packaging. Regulatory Compliance: To guarantee consistent execution of our policies from our suppliers, our co-packers, our customers and our bottling and distribution partners.
Continual Improvement across our global system to provide proactive identification and effective management of food sazzfety risks associated with products, processes, and technologies.
Literature review
The advertising and marketing spend in the industry is very high by Coke, Pepsi and their bottlers. This makes it extremely difficult for an entrant to compete with the incumbents and gain any visibility. Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of brand equity and loyal customers all over the world. This makes it virtually impossible for a new entrant to match this scale in this market place. Retailer Shelf Space (Retail Distribution): Retailers enjoy significant margins of 15-20% on these soft drinks for the shelf space they offer. These margins are quite significant for their
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bottom-line. This makes it tough for the new entrants to convince retailers to carry/substitute their new products for Coke and Pepsi. The several factors that make it very difficult for the competition to enter the soft drink market include: Network Bottling: Both Coke and PepsiCo have franchisee agreements with their existing bottlers who have rights in a certain geographic area in perpetuity. These agreements prohibit bottlers from taking on new competing brands for similar products. Also with the recent consolidation among the bottlers and the backward integration with both Coke and Pepsi buying significant percent of bottling companies, it is very difficult for a firm entering to find bottlers willing to distribute their product. The other approach to try and build A Cricket Legend SACHIN TENDULKAR Says about coca cola I distinctly remember being proud of buying a second-hand international car in 1993, and today we are spoiled for choices with the best of brands available in the country. But, as they say, "the more things change, the more they remain the same," and Coca Cola is a manifestation of this idiom. The joy of sipping the Coke remains the same, several years hence! 2013 is all about re-inventing one self. For players like us who have been around for over two decades, there is a need to look beyond our current pre-occupation and identify new challenges and take on new roles. I have been associated with Coca-Cola for several years, and the one thing I have seen during this association is the ability of the company to keep re-inventing itself.
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CHAPTER 4
DATA ANALYSIS AND INTERPRITATION
1. Are you Heard about coca cola company
Options Yes No
Respondents 82 18 100
82%
INFERENCE: From the above graph it is brought out that 82% of the Respondents are heard the coca cola brands. Remaining 18% of the Respondents did not know the coca cola brands.
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S.NO 1 2 3 4
RESPONDENTS 48 36 8 8
INFERENCE: From the above graph shows that 48% of the respondents using coca cola brands and 36% of the respondents using Pepco brands and 8% of the respondents dont know the any soft drinks. It indicates coca cola is occupies large market.
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S.NO 1 2 3 4
RESPONDENTS 30 15 40 15
Thums up 4
INFERENCE: From the above graph shows that 40% of the respondents preferred sprite 30% of the respondents preferred coca cola brands and 15% of the respondents preferred fanta and thums up.
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S.NO 1 2 3 4 5
RESPONDENTS 24 20 12 36 10
Verious charecterstics
RESPONDENTS Percentages % 36 24
price 1
INFERENCE: From the above graph shows that 36% of the respondents see the brand and 24%, price and 20%, taste and 12% flavour. It evaluate the more customers see the brand only to choosing the brand.
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S No 1 2 3 4 5
RESPONDENTS 26 42 5 21 6
INFERENCE: From the above graph shows that 42% of the respondents the price and 26% of the respondents strongly agree the price and 5% of the respondents saturated and 21% of the respondents disagree the price.
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S No 1 2 3 4
RESPONDENTS 72 14 8 6
Different
Percentages % RESPONDENTS
6% 8% 14% 72%
6 8 14 72
INFERENCE: From the above graph shows that 72% of the respondents are preferred soft drinks on summer. and14% of the respondents are preferred in winter and 8% of respondents are preferred in rain season and 6% of the respondents are preferred on regularly.
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7.Types of Respondents
S No 1 2
RESPONDENTS 56 44
OPTIONS
MALE 0%
FEMALE
44% 56%
INFERENCE: From the above graph shows that 56% of the respondents are in male and 44% of the respondents are female.
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CHAPTER 5
5.1 Findings
The data which was collected from 56% are males and 44% are females. Out of 100% of respondents 80% of respondents know the coca cola company brands.
Huge competition from PepsiCo and new competition from herbal drinks and from Red Bull.
The coca cola products are more selling on summer. Most of the costumers satisfies the price of products
5.2 Suggestions
The coca cola have a good brand and quality. It improve the low price on big battles to reach the more customers. My suggestion is that you have your vendors put more of it in the stores! Promotional facilities are also to be manage well to improve the status of pricing strategies towords products. Coco cola brand is good but quality should be improved. The coca cola must improve the awareness of brand in particular areas such as rural areas.
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You have all the other flavours that no one buys!!! The green tea one which is called RESCUE never stays because customers buy it more!!!!!THAT'S MY SUGGESTION!
5.3 Conclusion
In the conclusion, it can be stated that the coca cola company having good pricing strategies. Most of the customer choosing the coca cola products on seem brand image. There is no much competition in the market of soft drinks. The main competitor of coca cola company is pepsi. The coca cola company always look in to competitor price to fix their price of product.
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ANNEXURE
Bibliography
www.google.com www.coca cola.com Philip Kotler marketing management 14th edition. Business research methods S N Murthy.
QUESTIONNAIRE
Name: Age : 1.Have you ever had any soft drink? a) yes b)no
2.which soft drink do you used more often? a) coca cola b) Pepsi c)Dr.pepper d) None of the abive 3. Are you heard about coca cola brand? a) yes b)no
4. Which products you preferred in coca cola brand? a)coca cola b) fanta c) sprite d) thums up 5.what made to you choose particular product?
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a)price
6. In which seasons you preferred more soft drinks a) summer b) winter c) rain season b) regularly 7. Are you satisfied with the price? a) Strongly agree b) agree c) saturated d) disagree e) strongly disagree 8. Are you male and female? a) male b) female 9 .How much are you willing to pay to buy a soft drinks? Ans: . 10. Would you suggest any plan to improve pricing strategy? Ans:
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