Promotions: Market Execution: Internship Report
Promotions: Market Execution: Internship Report
Internship Report
SMBA08107
1. AKNOWLEDGEMENT 3
2. EXECUTIVE SUMMARARY 4
3. INTRODUCTION 5
COMPANY PROFILE 5
INTERNSHIP 6
4. METHODOLOGY 7
PLANNING 7
EXECUTION 8
RECORD 11
5. ISSUE ANALYSIS 12
SALES TECHNIQUE 12
DEPENDENCY ON MD’S 16
SHOPKEEPER ILLITERACY 16
7. BIBLIOGRAPGHY 21
8. APPENDICES 22
PICTURES 24
AKNOWLEDGEMENT
The project title market execution and promotion has been conducted by me during
20/05/2009 and 20/07/2009 at coca cola Hindustan Ltd. I have completed this project, based
on advertising for two products of known as sprite and pulpy orange, under the guidance of
Mr. Vineesh (HR head) and Mr. Aashish dhwan (ASM of the area).
I owe enormous intellectual debt towards my guides Mr. Vineet malik. (Promotions head).
Who have augmented my knowledge in the field of marketing .They have helped me learn
about the process and giving me valuable insight into the marketing and sales.
Beyond the above, I would also like to extend my gratitude towards Mr. Jamshed Ali Khan,
the MD under whom I spent almost a month of my internship, for his patience and friendly
attitude. I got much to learn from him
I would like to thank Mr. Prashant and other employees for his friendly nature and for all the
support, involvement that he provided me during the course of time.
I would also like to thank all the prospects and clients without whose cooperation; my project
would not have been possible.
Last but not the least, I feel indebted to all those persons and organizations who have helped
directly or indirectly in successful completion of this study and project.
SMBA 08107
MBA 2008-10
EXECUTIVE SUMMARY
Coca-Cola, the corporation nourishing the global community with the world’s largest selling
soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving
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 brand and bottling network. It’s no wonder our
brands have assumed an iconic status in the minds of the world’s consumers.
My internship was scheduled in Hindustan Coca – Cola, the bottling subsidiary of the Coca –
Cola Company in India. I worked under promotions with the company, specifically working
on the promotional campaign called “sprite kholega toh jeetega” and “pulpy orange”
campaign. The work entailed understanding the types of retail outlets and then actually
visiting retail outlets throughout the area assigned to me and putting up promotions material
on such outlets.
The Company has shaken up the Indian carbonated drinks market greatly, giving consumers
the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs.
During my time with them I found that the amount of efforts the company put into its sales
department starting at the lowest possible level was extraordinary. Every day was a new
struggle to make deadlines and solving more problems to make sure that the company kept its
merchandise moving. Some days were strenuously fast where some were relaxingly slow. All
in all I found the company to be a very aggressive sales machine.
All said and done, Coca – Cola has done excellent work to reach where it stands now and
even though the company is running into losses for now, it seems to be in a growth phase for
when it matures further into the new set up is when it will shine the brightest.
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INTRODUCTION
COMPANY PROFILE
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines
internationally. The Coca-Cola Company claims that the beverage is sold in more than 200
countries. It is produced by The Coca-Cola Company in Atlanta, Georgia, and many
countries is often referred to simply as Coke (a now generalized trademark) or (in European
and American countries) as cola, pop, or in some parts of the U.S., soda. Originally intended
as a patent medicine when it was invented in the late 19th century by John Pemberton,
Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics
led Coke to its dominance of the world soft-drink market throughout the 20th century. The
company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout
the world. The bottlers, who hold territorially exclusive contracts with the company, produce
finished product in cans and bottles from the concentrate in combination with filtered water
and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores
and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest
single Coca-Cola bottler in North America and Western Europe. The Coca-Cola Company
also sells concentrate for soda fountains to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke
brand name. The most common of these is Diet Coke, with others including Caffeine-Free
Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla,
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and special editions with lemon, lime or coffee. In response to consumer insistence on a more
natural product, the company is in the process of phasing out E211, or sodium benzoate, the
controversial additive used in Diet Coke and linked to DNA damage and hyperactivity in
children. The company has stated that it plans to remove E211 from its other products,
including Sprite and Oasis, as soon as a satisfactory alternative is found. According to Coca-
Cola authorities, the best Coca-Cola is made in Skopje, Macedonia, where the company has
granted the Skopje Brewery its "Best Bottling Company" award.
INTERNSHIP
Coca Cola India is the concentrate selling division of the Coca Cola Company whereas
Hindustan Coca Cola is the bottling and distribution facility of the company. The Internship
project prearranged for me was in HCC (Hindustan Coca Cola), in the promotions
department.
I started my work with going in the field with my head, Mr. Aashish Dhawan who currently
holds the post of ASM (area sales manager) for Ghaziabad and Noida areas. This was done so
as to familiarize myself with the working of the company and the area itself. After a week, I
was transferred under Mr. Vineet Malik who heads the promotions department, where I
spent the remainder of my internship.
The work assigned to me entailed the execution of various phases of promotional schemes
that the company came up with during my time with them. It ranged from offers for
wholesale and retail outlets to displaying and presentation of promotional material on the
retail outlets. The Final step was the recording of the work done by us.
The promotion campaign I worked on was the Sprite “kholega toh jeetega” offer, with the
IPL team The Kolkata Knight Riders. Under this, a consumer had to SMS a particular code
found on the cap of a bottle of Sprite to a specific number, putting the consumer’s name in a
lucky draw giving him/her the chance to win a new mobile phone and various other gifts.
The work was all field designed and I was assigned to market developers or MDs for
different sets of time. The time spent under the charge of one MD depended on the area the
MD looked after and the task at hand.
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METHODOLOGY
The purpose of this study was to identify the factors that enable marketing organizations to be
highly successful. Companies today are relying increasingly on their advertising
organizations as engines of growth and productivity. The advertising role has never been
more difficult—customers are more demanding, products more sophisticated, competitors
more aggressive. Not surprisingly, many advertising organizations are delivering
disappointing results; they have not been able to find the right formula for success in today’s
business environment.
“To study the factors responsible for the performance of the sales team and to measure
their effectiveness as a contributor to their performance at coca cola Hindustan”.
PLANNING
Every week started off with a planning phase where I, together with my MD would design
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the worksheet for the week taking into consideration the time required at each outlet,
dependant on the size of the customer, the bigger the client, the more the time devoted to it.
Smaller retail outlets were given 15 – 30 minutes whereas larger clients like, dealers or large
retailers, were given 30 – 120 minutes in a single visit. The number of days allotted to an area
depended on factors like – area size, average size of outlets, clientele size and nature of work
in the area. For example: SANJAY NAGAR SECTOR-23 required almost no promotional
work but required high visits and sales work, whereas Sector 44 required little sales work and
vital promotions work.
The planning phase entailed making a framework of the area to be covered under the coming
week and was usually undertaken on the Saturday of the previous week or the Monday of the
current week. The reason that the planning phase consisted of only a basic framework
construction was because the time the MD had his disposal was variable to say the least, due
to the very nature of the MD’s job, the time he would devote to a trainee in a day was not
fixed. On relaxed days, the MDs could contribute as much as 3/4s of a working day, whereas
on a busy schedule they would not be able to spare even an hour. Incorporating contingencies
and other facets of the MD’s schedule were inclusive in the planning phase.
Market: The world of commercial activity where goods and services are bought and sold;
“without competition there would be no market. In other terms market could be defined as
Marketing is an integrated communications-based process through which individuals and
communities discover that existing and newly-identified needs and wants may be satisfied by
the products and services of others. Here in Ghaziabad and noida the markets were large
enough to contain several retail outlets, some were as small as to take only half a day or so
and others were so immense that even a complete day seemed inadequate. Moreover, some
markets covered smaller land area but were vastly dense and formed an almost untraceable
labyrinth of alleys and narrow pathways. Such markets had several entry and exit routes and
could only be catered to with the help of a dealer.
Marketing concept: The term marketing concept pertains to the fundamental premise of
modern marketing. This can be laid out as recognising consumer needs/wants, and making
products that correlate with consumer desires.
EXECUTION
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The simple secret of marketing success, why a good plan executed today beats a better one
tomorrow?
People think of execution as the tactical side of the business, sometimes leaders delegate
while they focus on the perceived “bigger” issues. This idea is completely wrong. Execution
is not just tactics it is a discipline and a system. It has to be built into a company’s strategy,
its goals, and its culture. And the leader of the organization must be deeply engaged in it. He
cannot delegate its substance. Execution is a systematic process of rigorously discussing
how’s and what’s, questioning, tenaciously following through, and ensuring accountability.
My next step was to implement the plan of the week. This step entailed physically going to
each retail outlet in the market to be covered during the week and putting up the banners,
posters and other promotional material of the promotion schemes on the outlets.
New scheme introduction and dispute solving was also taken care of in these visits to the
retail outlets. Our task necessitated putting up the promotions material but however, did not
involve the explanation of the need and use of the material to the retail outlets, which were
looked after or owned by people with an almost nonexistent educational background.
Basically meaning that they failed to understand that the promotions material was to increase
the sale of the company’s product and in turn their own. Shopkeepers often removed the
material from their shop in our absence for personal use or sale.
Deciding the place of the material was trickier in congested markets (Patel Nagar) where the
retail outlets were small and occurred in higher frequency. The execution was to be done as
follows:-
Banner – The string banner was the biggest of the promotion material and was to go
on the shop front, on the top or the display counter.
Poster – the poster was the second biggest and was made with a sticky back to make
it easier to put up on the blank walls of the outlet that were visible to consumers.
Bunting – bunting was a string attached with three of the same miniature illustrations
panels. It was to be tied to the top of the retail outlet making it visible to consumers
over heads.
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Refrigerator poster – The refrigerator poster came equipped with 5 magnet strips on
its back which made sticking it on the refrigerators very convenient and easy.
However, these were to be used only when the fridge was visible to consumers.
While starting off with the work, we chose to cover markets of sectors 23, 10 and Gandhi
Nagar, Sanjay Nagar before other markets as these were more developed and were equipped
with tarmac roads making transport on a bike or car possible. These markets also had larger
retail outlets and educated shopkeepers. However, these are not absolute statements and refer
to the majority of the outlets there.
For the latter part of the internship, we worked on Gandhi Nagar and Sector 23 and 10 of
Ghaziabad. These were majorly rural areas comprised only of narrow alleyways and had to
be accessed on foot. The retail outlets here were small in size and were dense in network. In a
single alley there were up to 12 retail outlets.
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The final phase was that of recording the work done. The name of the outlets visited was first
written by hand as and when we visited them. The list so formed was then computerised and
furnished with more information. This became a list for keeping record with the company and
also for future reference purposes.
The hand written records were transferred to the MD who passed them to the company office.
Here the records were made and the lists were made into record forms.
The above recording was in context to the classification of the retail outlets. For the recording
of promotions work, a retail outlet which had been adorned with promotions material had to
be captured in still images.
Once again, the problem of the shopkeepers taking down the promotions material turned out
to be a problem and not all our work seemed fruitful. For understanding purposes.
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The photographs so taken were then submitted to our head Mr. Vineet Malik on a date set
with him. On the submission date, the photographs were analyzed and accepted by our head.
Any shortcomings in them were noted and good work was appreciated.
ISSUES ANALYSIS
Though the process of marketing the product seems to be very smoothing and easy as I
thought in the beginning of the summer internship, I found it equally challenging as the
people in the channel team. A marketing job either at any level, any place, for any product is
not at all an easy task. It requires a lot of input and inspiration every single day. While in the
marketing profile for two months, I found that this world really moves on maintaining
relations, good hospitality and delivering always a bit more than the expectations. Only this
will help you gain a prospect and convert it into a loyal customer.
SALES TECHNIQUE
One very vital factor for Coca Cola continued success and continuous dominance in the
market is the aggressiveness with which they pursue the sales. Coca Cola has people hired at
the lowest levels which reach the retailers, to people at the higher levels, where dealers and
larger units are taken care of. The company has a presence in every nook and cranny of any
area that it has entered. The company controls an overpowering 72% market share in the
Delhi – NCR area, down 6% from last year due to internal management problems and some
countering by Pepsi. The company makes Coca – Cola branded billboards with the name of
retailers (mainly restaurants and food joints) for any retailer who is ready to join their
network, free of cost. The company also offers refrigerators, and free repairs and
maintenance, for them depending on the size of the client, free of cost and any security
charge. The figure also shows the size of the refrigerators placed .The company also gives out
lamp signs saying “ice cold coke is available here” to retail shops. This makes the signs
visible even in later evenings and at night
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The company reaches deep into the market it has a presence in. There were sector markets
which did not have so much as a single retail outlet selling Pepsi products. These were
mainly markets which difficult to access and to cater to. like Sector 23and Sanjay Nagar are
comprised mainly of small and congested alleyways (as mentioned earlier) and are difficult to
navigate through on foot, let alone cater to. However, Coca Cola, by making dealers in the
area caters to even such small hard to penetrate areas.
The company segments its markets along three lines. Refer to Appendix 4 for a copy of the
company manuscript. The segmentation mentioned here refers to the segmentation of the
retail outlets on the basis of their consumption.
The company’s “Thanda matlab coca cola” campaign launched in 2002 brought it
widespread acceptance and has made a bottle of coke exactly that, thanda (meaning a cold
and refreshing drink). In my experience in the market, I saw many labours – class workers
coming onto a shop and asking for ‘thanda’. They were oblivious to the fact that the
shopkeeper would serve them with a coke or a limca or even a pepsi. And now its latest
advert campaign, “open a bottle of happiness” has also found solid ground to stand upon.
In promotions, Coca Cola harnesses every opportunity it gets to get the public eye for a
particular product. For the recent season of IPL, Coca Cola launched its “kholega toh
jeetega” with the team, The Kolkata Knight Riders, campaign for Sprite whereas it also
launched a “Coca Cola cheers for the Delhi Daredevils” campaign with the team, The Delhi
Daredevils.
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Moreover, the company has always befittingly capitalized on Indian festivities like Diwali
and Holi by using some slogans “choti khushiyion mein ek dum fit” to launch promotions
suited for the occasion with promotional packing and discount on gift packs.
The company also grants minor advertisement material to small street vendors which provide
use to the vendors and advertise the Coca Cola brand. For eg: the give large umbrellas to
vendors which are bright and big and can be seen from some distance away.
The company has a ‘Discount Form’ for retailers which sell over 800 cases per annum or are
classified as ‘Diamond’ clients. This form is attested by the local MD and the area sales
executive before being forwarded to the area sales manager or ASM. .Once approved by the
ASM, the retail outlet starts getting the special discount applied for. The retailers or Fat
Agents (as named by the company) which are granted additional discounts on the
merchandise become prime clients of the said area.
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Moreover, the company also gives special treatment to clients that have achieved ‘Diamond’
status. Like The Company makes special promotional material for them. The structure shown
in the picture has been placed around the entry of a local restaurant or ‘dhaba’ which is a
‘Diamond’ status client. No other retail outlet in that market had been awarded the doorway
banners. These banners bring a particular outlet into instant notice of a consumer.
DEPENDENCY ON MD’S
A flaw in the channel design of the company is the over reliance of the company on the
market developers or MDs. In my experience, I found some MDs to be insincere and
unwilling to do the work whereas others who sincerely do their work are overburdened with
it. The company’s increasing dependency on MDs has lost it many a client in markets which
are easily approachable and are readily open to competitors like Pepsi. (Sector 10
market).The work of an MD is checked on visits by senior members or on reviews which are
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held from time to time. There is no check on the MDs on a regular or rather daily basis
leading to gaps in the vigil.
SHOPKEEPER ILLITERACY
During my time with the company, I encountered many shopkeepers selling Coca Cola, and
found that amongst them very few were literate and even fewer understood the meaning and
purpose of the promotions that the company undertook. As mentioned earlier, the
shopkeepers did not know that the promotions material being put up on their shops was to
increase the company’s sales by increasing their own. They would let the material be for only
a few days before taking it down for decorating the place of their residence or for some other
use, some even sold it to people who were willing to buy. We faced immeasurable difficulty
in recording the work done in some markets as whole markets had been wiped clean of
promotions material only a week or two after we had laboriously put them up. And when
asked, the shopkeepers simply replied that the promotions material had come undone on its
own and flown away with the wind.
Swift and competent execution is the most important part of any marketing
program, but poor execution is a common affliction in many marketing company
programs.
poor execution leads to missed marketing opportunities
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Any Good Marketing Project, Well-Executed, Beats Any Great Marketing Project,
Poorly Executed.
Coca Cola Enterprise strengthened their sales leadership through innovative marketing
programs, the introduction of new brands and unique packaging designs in the past few years.
They focused on consumer demand for a wide variety of brands and products and on the
understanding of the diverse beliefs, motivation and needs of distinct consumer groups. The
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Moreover, retailers which suffer from acute shortage of material become discontent and
readily switch over to other brands like Pepsi. This can be very dangerous for the company as
a strong rival would not need much investment to enter in an area where it was not present
earlier. Pepsi offers ready stock and 24 hour delivery in some areas and was therefore able to
bag some well settled retailers of Coca Cola.
Due to these reasons, the bottling subsidiary called the Hindustan Coca Cola has been
running to successive losses for some time now.
Recommendation: The Company should continue its former efforts and should concentrate
on fortifying its market in easily approachable areas. And, the company can adopt a
combination or combinations of demand forecasting techniques when forecasting demand.
For eg: Smoothing techniques of forecasting demand are excellent at predicting underlying
trends in demand whereas moving average technique predicts demand through current and
future figures.
Promotion Education: I have also mentioned earlier that a major setback for the company is
that the shopkeepers do not understand the purpose of promotions campaigns and are
therefore inclined to use the promotions material put up on their shops for personal or other
use.
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How it happens: The MD takes the material to each retail outlet in a market and puts it up on
the various outlets by hand. After the MD has left, the promotions material are untouched for
3-4 days, beyond that, the shopkeepers either tear them off or take them down and keep it
with themselves or sell them to people who are naive enough to buy them. The company
having invested in the promotions material and on the MDs (time) loses out on its investment
on every step of the promotions execution. Considering that a promotion lasts from 15 - 45
days and then that the material does not stay on the shops for more than 5 days, the company
is making losses that it can avoid with some efforts.
Recommendation: A very easy and convenient remedy for this is to educate the shopkeepers
on the fruits of the material. Explaining to them that (a) the material does not cost them a
dime, (b) It is bright and flashy and helps grabs a consumer’s attention in a crowded market
and finally, (c) the promotions material induces consumers to buy more of a product that they
have already accepted, this helps to boost their own sale and hence maximize their profit too.
Another way to make sure that the promotions material stays on the shops is to offer the
shopkeepers promotions discounts. For eg: the shopkeepers can get a discount of say 1% per
5 day period on the drink the promotion concentrates on. This will act as a double shot for the
shopkeepers as they maximize their profit on the drink that is selling more (due to being
promoted) and help them learn more.
A job well done: Even though the company is struggling in relative comparison, it is
important to note that the company entered the Indian market many years after the ingress of
Lehar Pepsi. And to consider the fact that the company today has captured just over 70% of
the market makes their efforts seem truly remarkable. However, they are not ones without
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their dark clouds, the company has formed a distribution channel which best suits their sales
techniques but is proving to be inefficient in some parts. The company is choosing to sell
directly in some markets where they can achieve greater efficiency if they choose not to and
hand it over to a dealer or dealers (Sector 23, 10).These markets are a combination of
developed and approachable markets and rural unformed markets as we plough inwards.
Recommendation: The Company can appoint a large dealer in such markets and have him
cater to the local demand. This will reduce the company’s expenditure on transport but will
also eat into the company’s profit margin as they will also have to offer some to the dealer.
However, this will reduce the company’s workload, giving them time to attend to other tasks
at hand. Another recommendation for this is to form a Dealer Hybrid channel. Under this
channel, the company can appoint a dealer for the rural part of the market and keep supplying
to the developed market on their own. By doing so, the company can access the rural half
without much pain and can also maintain an equilibrium in its profit margins by supplying
directly to the developed and larger part of the market.
BIBLIOGRAPHY
BOOKS
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WEB SITES
www.cokefacts.com/
bizcovering.com/major/top-ten-facts-about-coca-cola/
www.thecoca-colacompany.com
www.cocacolasabco.com/index.php?option=com.
APPENDICES
PICTURES
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Details of shops
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