Final BBS 4th Year Project Report Marketing Strategy Analysis of Bottlers Nepal

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MARKETING STRATEGY ANALYSIS OF

BOTTLERS
NEPAL LTD.
Submitted by:

SHANTA GC

T.U. Registration:7-2-22-726-2016

College Roll Number:392

Submitted To:
Patan Multiple Campus
Tribhuvan University

In partial fulfillment of the requirement for the degree of


BACHELOR OF BUSINESS STUDIES (BBS)

Lalitpur, Nepal
January, 2021

i
DECLARATION

I hereby declare that the project report entitled “MARKETING STRATEGY ANALYSIS OF

BOTTLEARS NEPAL LIMITED” submitted to the Faculty of Management, Tribhuvan

University, Kathmandu an original piece of work under the supervision of Ganesh Prasad

Niraula, Faculty member of PATAN MULTIPLE CAMPUS, LALITPUR, and is submitted in

partial fulfillment of the requirements for the award of the degree of Bachelor of Business

Studies (BBS). This project work report has not been submitted to any other university or

institution for the award of any degree or diploma.

Signature:

Shanta GC

Symbol No.: 220245

January, 2021

ii
RECOMMENDATION

The project work report entitled “MARKETING STRATEGY ANALYSIS OF

BOTTLEARS NEPAL LIMITED” of PATAN MULTIPLE CAMPUS, PATANDHOKA,

LALITPUR is prepared under my supervision as per the procedure and format requirements

laid by the Faculty of Management, Tribhuvan University, as partial fulfilment of the

requirements for the award of the degree of Bachelor of Business Studies (BBS). I, therefore,

recommend the project work report for evaluation.

Signature:

Ganesh Prasad Niraula

January 2021

iii
ENDORSEMENT

We hereby endorse the project work report entitled “MARKETING STRATEGY

ANALYSIS OF BOTTLEARS NEPAL LIMITED” submitted by Shanta GC of PATAN

MULTIPLE CAMPUS, PATANDHOKA, LALITPUR, in partial fulfilment of

the requirements for the award of the Bachelor of Business Studies (BBS) for

external evaluation.

Signature: Signature:

Dr Yuga Raj Bhattarai Som Raj Khanal

Chairman, Research Assistant Campus

Committee Chief

January 2021 January 2021

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ACKNOWLEDGEMENT

This study has been prepared in partial fulfilment of requirement of the Bachelor in Business
Studies final year course. It is my privilege to complete this report writing, entitled '
Marketing Analysis of Bottlers Nepal Ltd.'

I would like to express my thanks to my teacher Dr.Bishnu Paudel for his help and
guidelines. I would also like to thank college staffs and our librarian for providing the
materials and good environment essential for the completion of this project. I would also like
to thank officer of corporate service department of Bottles Nepal for providing me data for
this project. I would like to express my gratitude to everyone who helped me during this
report preparation.

At last, I would like to express my sincere thanks to my friends, parents for their
encouragement and continuous help while preparing this report. I was given comments,
suggestions, guidance by many personalities of different fields in some way or other to whom
I am grateful.

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TABLE OF CONTENTS

Contents

DECLARATION.......................................................................................................................II

RECOMMENDATION...........................................................................................................III

ENDORSEMENT....................................................................................................................IV

ACKNOWLEDGEMENT........................................................................................................V

TABLE OF CONTENTS.........................................................................................................VI

LIST OF FIGURES (GRAPH).............................................................................................VIII

ABBREVIATION....................................................................................................................IX

CHAPTER 1: INTRODUCTION..............................................................................................1

1.1 INTRODUCTION................................................................................................................................................1
1.2 BACKGROUND.............................................................................................................................................2
1.3 PROFILE OF ORGANIZATION........................................................................................................................4
1.4 OBJECTIVE...................................................................................................................................................6
1.5 STATEMENT OF PROBLEMS.........................................................................................................................7
1.6 LITERATURE REVIEW...................................................................................................................................8
1.6.1 Conceptual Review....................................................................................................8
1.6.2 Market........................................................................................................................8
1.6.3 Marketing...................................................................................................................9
1.6.4 Marketing...................................................................................................................9
1.6.5 Marketing Strategy..................................................................................................10
1.6.6 Marketing Channels.................................................................................................11
........................................................................................................................................................................ 12
1.7 RESEARCH METHODOLOGY.......................................................................................................................14
1.7.1 Research Design......................................................................................................14
1.7.2 Population and Sample............................................................................................15
1.7.3 Nature and Sources of Data.....................................................................................15
1.7.4 Data Collection Procedure.......................................................................................15

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1.7.5 Data processing and analysis...................................................................................16
1.8 LIMITATIONS.............................................................................................................................................17

CHAPTER 2: RESULTS AND ANALYSIS...........................................................................18

2.1 DATA PRESENTATION AND ANALYSIS........................................................................................................18


2.1.1 Consumer's Survey..................................................................................................18
2.1.2 Consumer's Profile...................................................................................................19
2.1.2 Retailers Survey.......................................................................................................21

CHAPTER 3: SUMMARY AND CONCLUSION.................................................................24

3.1 SUMMARY...............................................................................................................................................24
3.2 CONCLUSION...........................................................................................................................................26

BIBLIOGRAPHY....................................................................................................................27

APPENDICES..........................................................................................................................28

vii
LIST OF FIGURES (GRAPH)

FIGURE1. 1: ZERO LEVEL CHANNEL..........................................................................................12


FIGURE1. 2: ONE LEVEL CHANNEL..........................................................................................13
FIGURE1. 3: TWO LEVEL CHANNEL..........................................................................................13
FIGURE1. 4: THREE LEVEL CHANNEL......................................................................................13

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ABBREVIATION

BBS Bachelor in Business Studies

TU Tribhuvan University

DR. Doctor

LTD Limited

BNL Bottlers Nepal Limited

POS Point-Of-Sale

ETP Effluent Treatment Plants

A.D. Anno Domini

B.S. Bikram Shambat

TCCQS The Coca-Cola Quality System

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CHAPTER 1: INTRODUCTION

1.1 Introduction

Coca-Cola, imported from India, was first introduced into Nepal in 1973, with local
production of Coca-Cola beginning in 1979. Bottlers Nepal Limited (BNL) is the only bottler
of Coca-Cola products in Nepal, and has two bottling plants; namely Kathmandu (Bottlers
Nepal Limited – BNL) and Bharatpur (Bottlers Nepal (Terai) Limited,) which is 160 km from
Kathmandu, its capital. The Marketing, Sales & Distribution strategy for Bottlers Nepal
Limited is entitled “Refresh the Marketplace” and includes: A robust Consumer Response
System to address any consumer/customer concerns, ideas, suggestions – either on product
and its quality or on stock supply – maintenance of equipment etc. All consumer concerns are
dealt with in a fair, timely and friendly manner, so as to satisfy them and resolve their
concerns.

Marketing and advertising communications are focused on POS (point-of-sale), Radio, TV,
hoardings, truck backs, etc. Emphasis is also placed on Consumer Price to enforce Price
Compliance. Marketing and advertising communications are customised to suit to local
sentiments – social, religious, ethnic. Innovative packages and pack sizes are offered to give
better value to consumers and ease of storage to retailers. Prices and packs are introduced in a
format that is affordable to all segments of society. The approach by the Nepal operation to
environmental issues is guided by a simple principle to conduct their business in ways that
protect, preserve and enhance the environment.

The fully automatic Effluent Treatment Plants (ETP) are established in both its plants and
have been operational since 2001, to protect the local environment as well as meet the
standards of The Coca-Cola Quality System (TCCQS). BNL is committed to strengthening
the community through various programmes. at the forefront is the health sector. With the
lowest per capita public health expenditure in the world, the state of medical facilities
available to the poor in Nepal is abysmal. The country is affected by outbreaks of
communicable diseases because hygiene and sanitation facilities are scarce. In association
with the local community, BNL supports Free Health Check-up Clinic at Bharatpur. The
health centre is managed by a qualified MBBS Doctor and trained paramedics, who extend

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free check-ups to communities around the plant in the area. The facility has thus far helped
hundreds of families get the best medical attention locally. Senior citizens and children are
the main beneficiaries

1.2 BACKGROUND

Every firm wants to maximize the value of the firm. For every product to be known by
the customers, it is important that information regarding that particular product is
reached to the customers. And the process by which the information is relay to the
customers are done through the advertisement. Advertisement is a medium to relay
information to the customer about the existing products in the market.

In ancient China, the earliest advertising known was oral, as recorded in the Classic of
Poetry (11th to 7th centuries BC) of bamboo flutes played to sell candy. Advertisement
usually takes in the form of calligraphic signboards and inked papers.

In the 18th century advertisements started to appear in weekly newspapers in England.


These early print advertisements were used mainly to promote books and newspapers,
which became increasingly affordable with advances in the printing press; and
medicines, which were increasingly sought after as disease ravaged Europe.
However, false advertising and so-called "quack" advertisements became a problem,
which ushered in the regulation of advertising content.

Industrialization is an important factor for achieving basic objectives of a country’s


economic and social progress. Industrialization is considered as an essential for the
economic development of the country. It facilitates on effective mobilization of
resources such as capital and skill, which might otherwise remain unutilized. It also acts
as a vehicle for fostering innovation and technological improvement for industrial
development, thus, has a multiplier effect on the economy.

Industrialization is a comparatively new phenomenon in Nepal. Industrial development


in Nepal however started getting regular attention of the government since the
development plans was started. Several industries were established under the public
sector with the technical assistance of foreign countries were seen in existence in the
public sector also. But the financial position is not growing as the growth of the
numbers.

2
The objectives of all business are to makes profits and a merchandising concern can do that
by increasing its sales at remunerative prices. This is possible, if the product is widely
polished to be audience the final consumers, channel members and industrial users and
through convincing arguments it is persuaded to buy it. Publicity makes a thing or an idea
known to people. It is a general term indicating efforts at mass appeal. As personal
stimulation of demand for a product service or business unit by planting commercially
significant news about it in a published medium or obtaining favourable presentation of it
upon video television or stage that is not paid for by the sponsor.

On the other hand, advertising denotes a specific attempt to popularize a specific


product or service at a certain cost. It is a method of publicity. It always intentional
openly sponsored by the sponsor and involves certain cost and hence is paid for. It is a
common form of non- personal communication about an organisation and or its
products idea service etc. that is transmitted to a target audience through a mass
medium. In common parlance the term publicity and advertising are used
synonymously.

Manufacturing means any industries that make product from raw material by the use of
labour or machinery, which is usually carried out systematically with a division of
labour. BNL is one of the manufacturing and processing companies of soft drinks,
which supplies sufficient quantity of quality products at the right time at reasonable
price. In the context of globalization, companies are free to enter the market of any
nation. If the finished products are not sufficient to meet the demands of the customers
regularly, the customers may shift to the other close substitutes resulting into permanent
loss of the firm, but BNL has handled this challenge in an efficient way.

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1.3 PROFILE OF ORGANIZATION

Coca-Cola is one of the worlds leading and largest Company in the sector of beverages.
It was established in 1886 by Dr.John Pemberton who was a pharmacist of Atlanta,
Georgia USA. The brand has since become household drink in more than 200 countries
across the world. Carbonate drinks are the single largest component in Coca-Cola
Company which account for nearly 78% of the total volume sold in 2008. The company
has more than 3000 products of beverages and has nearly 500 brands in its portfolio
includes Coca-Cola or Diet Coke family, Coca - cola enterprise (CCE). Likewise, wide
range of carbonates including Fanta, Lilt, PowerAde and Sprite.

At first Coca-Cola was introduced in Nepal in 1973, which was imported from its
neighbour country India. Local production of Coca- cola in Nepal was started in 1979,
with the establishment of Bottlers Nepal Limited (BNL). Coca-Cola Sabco was
provided the right of bottling from the Coca-Cola Company to Nepal in 2004.

BNL has plants in the capital city Kathmandu and Bharatpur municipality, which is
only the bottler of Coca-Cola products in Nepal. The Marketing, Sales and Distribution
strategy for BNL is mentioned as 'Refresh the Marketplace' and contain a robust
Consumer Response System to deal with the concerns, ideas and suggestions of the
consumers.

BNL is also dedicated to support the community through different programmes, mainly
in the sector of health. In relationship with the local community, BNL also support by
providing a Free Health Check-up Clinic at Bharatpur municipality.

Bottlers Nepal Ltd. Company is one of the manufacturing and processing companies,
which is manufacturing the soft drinks under the brand name of the Coca Cola
Company. The company also makes the sales of the soft drinks under the registered
trademark of the Coca Cola Company that is managed by Singapore based F & N Coca
Cola Pvt. Company Ltd. It’s registered office is located at Balaju , Kathmandu, and
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the head office being the same. product of the company, packed in 2000ml, 1500ml,
1000ml and 500ml nonreturnable plastic bottles and 750ml, 250 ml and 175ml
returnable glass bottles. BNL has continuously increased the production target. The
machine operates 3 shifts in peak season and according to the demand of stock season
90% of the operation is carried in full season and 10% of the operation is done in off-
season.

For the production of these products certain inputs are pre-requisites i.e., concentrate,
crown cock, closure and sugar which are not produced in the country. Therefore, these
inputs are imported from other countries like Singapore, Iran, Pakistan, Indonesia,
German and India.

The company had given prime importance to its quality product for which it had
established well-equipped laboratory to assess the quality of raw materials as well as
finished product. Similarly, the company had also shown its concern to guarantee the
safer environment by establishing Effluence Treatment Plant (ETP) in 1999 to refine
the waste water generated in the production process.

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1.4 OBJECTIVE

The main objective of the study is to analyse the Marketing strategy of Bottlers Nepal
Ltd. regarding soft drinks and its effect on the sale. This study is to point out the
availability, consumption and marketing aspects of Coke in Kathmandu municipality.
Relating to this, the study has the following objectives.

1. To identify the consumer's profile in the purchase of Coke in Kathmandu.


2. To evaluate the impact of advertisement and sales promotion schemes on the
sales of Coke in the study area.
3. To evaluate the factors that influence consumer purchase decision.
4. To find out the popular media of advertising for Coke in the study area.

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1.5 STATEMENT OF PROBLEMS

Marketing is of great importance for any business activity as it attracts people to use the
particular service. Most of the businessmen are using various different means of
communication to reach people around the world and turn them into leads that can be
further turned into potent customers. There are various ways of putting up an
advertisement as per the audience to be addressed. Most people use to look for these
marketing strategies very carefully observing carefully the specifications and efficiency
of the featured product. However, it’s impossible for someone to get the reality check
through these advertisements, so in order to get clearer idea about a particular service
one must go for people’s feedback about a particular product or service and these
feedbacks must also be genuine as some of them maybe done for fake publicity.
Marketing is the best way to communicate to the customers. Marketing helps informs
the customers about the brands available in the market and the variety of products
useful to them. Marketing is for everybody including kids, young and old. It is done
using various media types, with different techniques and methods most suites.

Coke and coke are mainly two competitors in cold drinks market in Nepal. The
prestigious growth of the market between these cola giants has been growing ever since
Coke to Nepal in 1986. Since coke entered Nepal in 1997, it had been enjoying market
leadership in soft drink industry. So, coke had a sort of monopoly in the market till
then. The manufacturers of Coke in variety of media use different types of
advertisement. Also, it is very essential for company to know about their consumer's,
their choice and purchasing behaviour. For regular sales and distribution of Coke in the
study area we must know about' which is the best advertising media, which advertising
media can be more effective? Therefore, this research starts with the following
problems.

1. What is the purchasing behaviour of consumer's of Coke?


2. Which are the most effective factors that consumers consider while making
buying decisions?
3. What type of impacts have the advertisements made on the sales of Coke in
study area?
4. What is the effect of sales promotions schemes on sales of Coke in the study
area?

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1.6 LITERATURE REVIEW
The 'Review of literature' consists of conceptual framework which includes meaning of
dividend, theories of dividend, forms of dividend, dividend policy, and Review of Major
international studies/models, review of major national studies and review of unpublished
thesis. The purpose of reviewing the literature is to develop some expertise in one's area, to
see what new contributions can be made, and the receive some ideas for developing a
research design. Scientific research must be based on past knowledge. The previous studies
cannot be ignored because they provide the foundation to the present study.

Thus, the purpose of literature review is to find out what research studies have been
conducted in one's chosen field of study, and what remains to be done.

1.6.1 Conceptual Review

In this part, concept of the topic and its related meaning are presented, which help to know
the research and its findings. In this study, conceptual review includes market, marketing,
marketing mix, marketing strategy marketing system, marketing environment, role of
marketing in industrialization, introduction of advertising, introduction of promotional
activities and marketing channels.

1.6.2 Market

A market may be defended as a place where buyer and sellers meet, product or service is
offered for sales, and transfer of ownership occurs. "A market consists of all the potential
customers sharing a particular need or want who might be willing and able to engage in
exchange to satisfy that need or want." A market may also be defined as the demand made by
a certain group of potential buyers for a product or service. "A market represents the
aggregate demand of the buyers and potential buyers for a product or services over a specific
period of time." Market is defined as people or organizations with wants, to satisfy, money to
spend and willingness to spend it. Thus, in the market demand for any given product or
service, there are three factors to consider. People or organization with wants their purchasing
power, and their buying behaviour. Market is a group of individual organization who may
want the goods or services being offered for sale and who meet these three additional criteria.

i. Members of a market must have the purchasing power to be able the product
being offered.

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ii. Market members must be willing to spend their money or exchange other
resources to obtain the product.

iii. Market members must have the authority to make such expenditures.

1.6.3 Marketing

Marketing is the economic process by which goods and services are exchanged and their
values determined in terms of money prices. "Marketing is concerned with regular the level,
timing, and character of demand for one or more products of an organization. "Marketing
consists of all business activities involved in the flow of goods and services from the point of
initial production unit they are in the hands of the ultimate consumer. Thus, agricultural
marketing is a process by which the producer and buyer of agricultural goods are brought
together."

A more modern definition in turn with greatly expanded productive capacity might
emphasize the adaptation of production facilities to the market. Specially, marketing might be
defined as the response of businessmen to consumers demand through adjustments in
production capabilities. Adjusting production, accounting, finance and marketing in the light
of the changing needs of consumers who are affluent enough to have varied buying choices.

"Marketing is concerned with designing an efficient and fair system which will direct an
economy's flow of goods and services from producers to consumers and accomplish the
objective of the society."

In the modern marketing era, every marketer should understand the consumer needs.
Successful marketing understands consumers taste, quality and choice. If there is no
satisfaction of consumer that product doesn't give good result. For consumers satisfaction, the
product that is available easily and everywhere than customer attract in that product easily.

1.6.4 Marketing

Marketing mix is one of the most fundamental concepts associated with the marketing
process. It is well understood by most modern marketers and is systematically applied in
many industries especially those that deal with physical products. Yet it is easy to assume
that, because most managers have heard about it and 100 use it, there is no need to mention it
again a book on marketing. A brief review of the main principles surrounding the marketing

10
mix can help to clarify its true role in the development amid execution of an effective
marketing effort.

"The marketing mix is the set of marketing variables which the organization blends to
achieve the marketing goal in a defined target market. the marketing mix consists of
everything the organization can do influence the demand for its product in the target market."

As stated earlier the marketing mix represent as assemblage of tasks and subtasks, which
ultimately will help to satisfy the customer requirements in such a way as to enable the firm
to attain its objectives in an optimum fashion. The subtle part of the concept is that different
company in the same business may option to develop different mixes. In face it is that
difference that may provide one company with a competitive advantage over its competitors.

1.6.5 Marketing Strategy

Marketing strategy is both unique and commonplace. That might sound like a contradiction
of term but it is not. The term "Strategy" is widely used to describe a seemingly endless
number of marketing activities. Today, everything in marketing seems to be "Strategic".
There is strategic pricing, strategic market entry, strategic advertising and may be even
strategic strategy. The glut of competition has focused more attention on performing the
traditional marketing actions strategically with an eye towards beating the competition. In
that sense, marketing strategy is commonplace. In recent years, it seems to have been
appended to nearly every marketing action.

Marketing strategy is also unique. There is not one unified definition upon which marketers
agree. Marketing strategy is a commonly used term, but no one is really sure what it means.

A strategic sector is one in which you can obtain a competitive advantage and exploit
strategic sectors are the key to strategy because each sector's frame of reference is
competition. The largest competitor in an industry call be unprofitable if the individual
strategic sectors are dominated by smaller competitors. Boyd and larches (1970) had found in
the history of marketing strategy that tremendous confusion over just what strategy is. The
term "Strategy" as used in marketing has been applied to at least three types of issues, each at
a different level of aggregation.

At the macro level, there are marketing strategies which focus on manipulations of the
marketing mix variables-product, price, place and promotion. According to that definition,

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setting a strategy for a product consists of selecting a price for a product, designing an
advertising campaign then deciding on a plan of distribution. Finally, there are product
market entry strategies, which include strategies that look at specific marketing decisions.
Strategies that call for a firm to build market share harvest profit (and share) or defend share
from competitors.

Another widely used definition of strategy in marketing emphasizes the broader perspective
of strategy emphasizes. That definition views strategic market planning as a four steps
process-

i) Defining the business

ii) Setting a mission

iii) Selecting functional plans for marketing, production and other areas and

iv) Budgeting for those plans (A bell and Hammond 1979) in that sense,
marketing strategy is more akin to corporate strategy

Strategic marketing is a major component of the strategic planning. Its main objective is to
establish the product/market scope of a business. strategic and marketing is the method that
concern trades on the market to serve, the competition and related moves. Formally, strategic
marketing deals with the following questions-

i) Where to complete?

ii) How to complete?

iii) When to complete?

"Strategic marketing helps to define the market in entering and competing. That may be the
entire market. Strategic marketing provides inputs or techniques for solving customer need.
That technique may be either an introduction of a new product or existing product with
improvements similarly, strategic marketing tries to identify an appropriate time for entering
to the market defined. The appropriate time to enter the market may be the first in the market
or wait until primary demand is established".

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1.6.6 Marketing Channels

According to Stanton and Futrell – A marketing channel or channel of distribution is a group


of interrelated intermediaries who direct products from producers to consumers or industrial
users. Most producers do not sell their product directly to the final consumers. That is why,
they use variety of intermediaries. Channels are the medium for taking the goods and services
to ultimate buyer. These organizations and agencies are grouped together in various
combinations linking particular producing units through the channel of distribution.

MANUFACTURERS

WHOLESALERS

WHOLESALERS AGENTS

RETAILERS RETAILERS RETAILERS

CONSUMERS
Distribution Channel for Consumer Goods

For the consumer goods, marketing channels are divided into following parts.

i) Zero level channel

In this level, the producers or manufacturers sell their product to final consumers
directly. This is one of the very simple and short medium to distribute and sell the
product. This can be seen in following figures.

Manufacturers

Consumers

13
Figure1. 1: zero level channel

ii) One level Channel

In this channel, manufacturers sell their product to retailers at first. Then, retailers sell
these products to final consumers. It can be seen in following figures.

Manufacturers

Retailers

Consumers

Figure1. 2: One level Channel

iii) Two-level Channel

Wholesalers and retailers, by the help of them manufacturers sell the product to the
final consumer manufacturers, retailers purchase this product from wholesalers, and
retailers sell it to final consumers. It can be seen in following figures.

Manufacturers

Wholesalers

Retailers

Consumers
Figure1. 3: Two level Channel

iv) Three-level Channel

This is the largest medium to distribute and sell the consumer goods. At this channel,
manufacturers use the three type of intermediaries’ wholesalers, agent and retailers.

Wholesalers

Manufacturers

Agents

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Retailers

Consumers
Figure1. 4: Two level Channel

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1.7 RESEARCH METHODOLOGY

Research methodology may be defined as a systematic process that is adopted by the


researcher in studying a problem with certain objectives in view. In other words, research
methodology describes the methods and process applied in the entire of the study. In this
regard, this chapter includes research design, sources of data and use of statistical tools in the
study. By keeping the stated objectives in mind, both the descriptive and analytical type of
research is employed.

A descriptive analysis is used because the secondary sources of empirical data have been
employed to analyze the using variables, which is related to condition and growth and
prospects of the subject.
This research is based on the secondary data provided by BNL. First of all, the organization is
selected for the research. Then the topic is selected. Data which is suitable for the topic is
collected and analyzed. Data are created into a project by providing it with tables and figures.
1.7.1 Research Design

Research design is layout of a research. It is always purposeful scheme of action proposed to


be carried out in a sequence during the process of research, focusing on the management
problem to be tackled.

Research design is scheme for doing research work. It is the plan, structure and strategy of
investigation conceived so as to obtain answer to research questions and to control variance.

There are mainly two types of research design exploratory and descriptive. Exploratory
design is essential for formulating hypothesis. It is done to investigate possible cause and
effect relationships by exposing one or more control group to one or more treatment
conditions and comparing the results to one or more control groups but not receiving the
treatment. Descriptive research design is a type of fact-finding research. It is conducted under
respondent's options.

The descriptive research designs will be followed in the study. Such design provides a
description of a specific situation in such a way as to help the researcher identify cause effect
relationship. This study is based on the survey research design. A limited scale survey has
been conducted among the consumers and retailers of Coke in Kathmandu. The

16
questionnaires have been administered in order to generate data and other information
relating to the research questions adopted for this study.

1.7.2 Population and Sample

As the total population of 'Coke' users presently available is hard to find in number, the study
takes the population as the total consumers of Coke drink in Kathmandu municipality. The
study has included 50 consumers and 50 retailers of 'Coke' drink based in Kathmandu.
Sampling is the practice of selecting group of consumers considered to represent the entire
population because it is neither feasible nor practical for research to contact to all the
members of a population. Though, the sample size is very small in comparison to the total
population, sufficient efforts have been made to make the sample representative by including
consumers from the different professions, age group educational background and sex.

1.7.3 Nature and Sources of Data

Data are mainly two types; one is Primary data and another is Secondary data. Primary data
are the first-hand data, generated by original research to solve the specific and current
research questions. The major advantage of primary data is that the information is specific,
relevant and up-to-date. There are two principal method of collecting primary data:
Observation and Questionnaire

Secondary data are information that are already collected for other purposes and is readily
available. The advantage of this type is its availability and lower cost than primary data.

For this study, both primary and secondary data and information are used. But research is
mainly based on primary data or original data collected directly through the questionnaires
and oral conversation from the concerned and consumers. The questionnaires were
distributed to the consumers and retailers of Kathmandu collecting necessary information.

1.7.4 Data Collection Procedure

The data have been collected through a self-administered questionnaire survey at respondent's
place at mutually convenient time. The questionnaire distributed through personal contact in
which the respondents were requested to fill up the questionnaires. The respondents were
supported by oral explanation at the point where they got confused or unable to understand
content of the questionnaires. The researcher personally visited to take interview of the
retailers and consumers. Consumers were chosen from different socio-economic background
for interview. Sample of the questionnaires is given in Appendix A & B.

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1.7.5 Data processing and analysis

The raw data collected through the questionnaire have been manually processed and
presented in the form of table. Once the data are arranged sequentially, simple statistical tools
were used for analysis. The processed data have also been presented Graph, Bar-diagram and
Pie-chart. All the questionnaires were distributed and collected by the researcher himself. So,
there was no delay in collection of the questionnaires distributed to the consumers. Every
questionnaire was thoroughly checked after the collection.

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1.8 LIMITATIONS

The main focus of this study is to point out the marketing strategies of BN Ltd. Company. So
the conclusion is based on the available primary data as well as secondary data that might not
be correct in reality. Similarly, conclusion of this study might not be application to other
manufacturers because of the possibility of the gross variation in data. However, following
factors are the limited scope of the study.

 The information collected from agencies and companies is corrected by


persuading the concerned agencies as they are not generous to provide the
information.
 The qualitative aspect of research is the effect of advertising to persuade
customers to buy the Bottlers Nepal Ltd soft drinks and it cannot be quantified.
 It is purely a study of users of Bottlers Nepal Ltd soft drinks, in Kathmandu
only.

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CHAPTER 2: RESULTS AND ANALYSIS

2.1 DATA PRESENTATION AND ANALYSIS

It is data presentation and analysis part; it is the main body of the study. It includes data
presentation, interpretation and analysis. Mainly Secondary data will be analysed in this
chapter. The data and information collected from the consumers and retailers have been
presented, analysed and interpreted in this chapter for attaining the stated objectives of the
study. The data were presented in suitable table with appropriate headings to provide
clear picture of what was intended to show. While preparing these tables, it was processed
to the best to remove complexities. In course of analysis, both the mathematical and
statistical tools, which were previously explained in the third chapter, were used. This
chapter first presents the consumer level survey and then after the retailers’ level survey.

2.1.1 Consumer's Survey

This chapter particularly consists of the analysis and interpretation of the following.

 Consumer's profile.
 Most preferred time for taking Coke drink.
 Suitable place for having Coke drink.
 Reason for having Coke drink.
 Size of Coke drink most preferred.
 Factors that influence to have Coke drink.
 The most effective advertising media.
 Frequency of purchase of Coke drink.
 Participation in the process of Coke drink.

20
2.1.2 Consumer's Profile

Table 1: Users of Coke drink - Age wise


Age No. of Respondent Percentage
10-20 15 25%
20-30 20 44%
30-40 25 26%
Above-40 20 5%
Total 80 100%
Source: Field Survey 2020

Users of Coke drink - Age wise


30
25 26%
20 44% 5%
15 25%
25
10 20 20
15
5
0
Oct-20 20-30 30-40 Above-40

No. of Respondent Percentage

As shown in table 1, among the sample selected for the study, 25 percent of consumer of
Coke drink lies in the 10-20 age groups, 44 percent lie in the 20-30 age group, 26 percent lie
in the 30-40 age group and 5 percent lie the above 40 age groups. From this table it can be
inferred that users of Coke drink can be found across the different age group.

Table 2: Users of Coke Drink-Occupation wise


Occupation No. of Respondent Percentage
Students 15 50%
Job holders 20 25%
Businessmen 25 15%

21
Others 20 10%
Total 80 100%
Source: Field Survey 2020

Percentage
Others
10%

Businessmen
15%
Students
50%

Job holders
25%

As shown in table 2, according to the occupation background, 50 percent are students, 25


percent Job holders, 15 percent business men and 10 percent from other occupations are
consumed Coke drink.

Table 3: Most Preferred time for taking Coke drink


Time No. of Respondent Percentage
Before Lunch 20 10%
Lunch 20 10%
Snacks 20 70%
Dinner 20 8%
Total 80 100%
Source: Field Survey 2020

From the above table 3, it proves that the most preferred time for taking Coke is snacks time.
Among the 80 respondents survey in Kathmandu, 70 percent of the respondents are found to
take Coke in Snacks time, 10 percent of the respondents take before lunch, 10 percent take at
lunch and 8 percent respondents take Coke at dinner time.

Table 4: Reasons for Changing Brand

Reason No. of Respondents Percentage


Not Available 15 40%
Because of Expensive 20 22%
Giving more scheme by competitors 10 10%

22
To find New taste 20 20%
Because of Advertising 15 8%
Total 80 100%
Source: Field Survey 2020

As presented in table 4, consumers are found often trying other brands as 20 percent
respondents change their brand to find new taste. While 40 percent respondents change their
brand when they are most preferred brand is not available. Another 22 percent of respondent
change their brand because of price factor, 10 percent of respondents change their brand
when competing brand provides different sales schemes and only 8 percent of respondents
are found to change their brand due to advertisement. Thus, it includes that a large number of
respondents change their brand to find the new taste.

2.1.2 Retailers Survey

This chapter particularly consists of the analysis and interpretation of the following-

 Year in Business
 Retail Sales of Coke in Per day
 Size of bottles sold most
 Type of Packaging preferred for selling
 Satisfaction from the distribution
 Reason for preference to sell the brand
 Influence of advertising on sales
 Factors for Increase in sales of Coke
 Sales promotion schemes to induce sales.

Table 5: Retail Sales of Coke in per day


Crates No. of Respondents Percentage
½ Crates 12 16%
1 Crates 10 20%
2 Crates 40 44%
3 Crates 10 12%
Others 8 8%
Total 80 100%
Source: Field Survey 2020

23
Percentage
8% 16%
12%

20%

44%

½ Crates 1 Crates 2 Crates 3 Crates Others

Table5 shows that out of 80 retailers 44 percent sells 2 crates of Coke drink in a day. 20
percent sells 1 crate per day, 16 percent sells ½ crates per day, 12 percent sells 3 crates per
day and 8 percent of retailers sell less than half crates in day. From the above table it may be
inferred that the retail sales per store in generally between one to two crates of Coke drink in
a day.

Table 6: Satisfaction from the Distribution


Options No. of Respondent Percentage
Totally Satisfied 15 16%
Satisfied 50 70%
Dissatisfied 10 10%
Total Dissatisfied 5 4%
Total 80 100%
Source: Field Survey 2020

As presented in table 6, 70 percent of retailers are satisfied by the current distribution, 16


percent if retailers are totally satisfied, while 10 percent of retailers are dissatisfied and 4
percent of retailers are totally dissatisfied. The analysis indicates that the retailers in general
are satisfied from the performance of the distributors of Coke in Kathmandu.

Table 7: Sales Promotion Schemes to induces Sales


Options No. of Respondents Percentage
Cash Prizes 30 52%
Coupon Prizes 10 16%
Item Prizes 12 22%
Others 8 10%
Total 80 100%
Source: Field Survey 2020

24
As shown in table 7, 52 percent of retailers said that cash prizes induces sales of Coke drink,
while 22 percent of retailers found that the item prize is more effective on sales, 16 percent of
them are in favour of coupon prizes and 10 percent retailers are said that other sales
promotion schemes are better to induce sales of Coke. This indicates that retailers of study
area are in favour of cash prizes and item prizes.

Table 8: Factors for Increase in sales of Coke


Options No. of Respondents Percentage
Advertising should be more 6 12%
Decrease in Price 5 10%
To put Prize in Cork 14 28%
Increase in Quality 22 44%
Others 7 6%
Total 60 100%
Source: Field Survey 2020

According to the table8, 44 percent of retailers claim that the quality should be better to
increase the sales, 28 percent of retailers want the prize in cork, 12 percent of retailers said
that the advertisement should be increased, 10 percent of retailers want to decrease in price
and 6 percent of retailers said that other factors are better to increase the sales. From the
above table, it may be inferred that quality and sales schemes are essential to increase in sales
of Coke drink.

25
CHAPTER 3: SUMMARY AND CONCLUSION

3.1 SUMMARY
This study has been conducted to identify to consumers profile in the purchase of Coke in
Kathmandu, Nepal. Its aim is to evaluate the impact of advertisement and sales promotion
schemes on sales of Coke and evaluate the distribution network and marketing strategies of
Coke Company. It also aims to measure the effect of sales promotion schemes on the sales of
Coke and tried to find out the effectiveness of advertising media in consumers purchase
decisions.

Consumer is the king in modern business, the success and failure of any business firm
entirely depends on consumer's reactions to its offers. It is, therefore, essential for the
marketers or manufacturers of the products and services to understand the consumer buying
behaviour for long term survival in today's changing and competitive business environment.
However, understanding of consumer's behaviour is becoming more complex and
complicated day by day; it requires continuous efforts of investigations and exploration of
consumers. But, such practices of investigation and exploration on consumers buying
behaviour are too rare or entirely absent in Nepalese business perspectives.

Bottlers Nepal Pvt. Ltd. has been producing Coke products under technical collaboration with
Coke Co. New York. The company is producing seven brands within different flavours and
packs. Coke drink has its competition with Pepsi.

Nepal is a small and poor country and so Nepalese consumers seems to be bias and they use
any products depending upon availability. Most of the marketing policies, strategies and work
forces are heavily borrowed from India. However, Nepalese market is small, the researcher
tries to enhance or support to understand the consumers' behaviour in Nepal.

This Study or research is very small. So, the researcher has set limited objectives. In this
study, the researcher has tried to find out the marketing of Coke in Kathmandu. Review of

26
literature includes conceptual review and review of previous studies in Nepal. In this study,
the research methodology includes research design, population and sample, nature and
sources of data, data collection procedures and data processing analysis.

This study has been conducted to identify to consumers profile in the purchase of Coke in
Kathmandu. Its aim is to evaluate the impact of advertisement and sales promotion schemes
on sales of Coke and evaluate the distribution network and marketing strategies of Coke
Company. It also aims to measure the effect of sales promotion schemes on the sales of Coke
and tried to find out the effectiveness of advertising media in consumers purchase decisions.

This study has been conducted through a survey of consumers and retailers. All together 50
consumers and 50 retailers’ opinions have been collected by administering questionnaires. In
consumer survey different age group, profession and educational background related
consumers consume Coke drink. Consumers of the study area are thought that the most
preferred time to take Coke in snacks time and the suitable place is restaurant. Most of the
consumers fifty eight percent of consumers consume Coke drink for themselves and they
consume Coke once a day. The most effective advertising media is television. In the other
hand, in retailer survey it has been found that sixty percent of retailers have been running
their business for last 5 years. Fourty four percent retailers sold 2 crates of Coke and they like
to sell Coke in bottle. The most preferred size is 250ml in Kathmandu. In the study area
retailers are satisfied from the performance of the distributors of Coke in Kathmandu
municipality. Sixty six percent of retailers like to sell Coke because they believe in the brand.
Retailers of the study area are suggesting that the company should launched many sales
schemes for the promotion of the Coke drink.

27
3.2 CONCLUSION
In consumer survey different age group, profession and educational background related
consumers consume Coke drink. Consumers of the study area are thought that the most
preferred time to take Coke in snacks time and the suitable place is restaurant. Most of the
consumers fifty eight percent of consumers consume Coke drink for themselves and they
consume Coke once a day. The most effective advertising media is television. Consumers
have their own interest in using various types of goods through which most of them have
almost the same type of nature for consuming. Consumers are found to give higher
preferences to the quality and taste in the choice of Coke, moderate level prefer to price and
advertisement and lower prefer to the other factors. Consumers firstly prefer to the most
effective advertising media is Television. Radio provides the second important effective
media, followed by Magazine, Hoarding board and other media. The frequency of
consumption of Coke drink is quite high in Kathmandu. Consumers generally purchase Coke
drink for themselves or through their family members.

The study indicates that the retailers in general are satisfied from the performance of the
distributors of Coke in Kathmandu. The retailers are found to prefer to sell Coke because of
its high demand in the market. The study reveals that the retailers have high faith on
advertising for its effect on sales and it may be inferred that the quality and sales schemes are
essential to increase the sales of Coke. Retailers are found to prefer cash prizes to induce
sales of Coke, followed item prize, coupon prize & others.

28
BIBLIOGRAPHY

[1] Introduction about Bottlers Nepal Limited


Website: http:// www.khetan.com.np/bottlers_nepal.htm
[2] Govind Ram Agrawal (2006 AD), Project Management, 2 nd Edition, Kathmandu, M.K. Publishers
Pvt. Ltd.
[3] Essays, UK. (November 2018). Marketing Of Coca Cola In The Uk Nepal Marketing
Essay. Retrieved from Website: https://www.ukessays.com/essays/marketing/marketing-of-
coca-cola-in-the-uk-nepal-marketing-essay.php?vref=1
[4] Background study
Website: https://bossnepal.com/bottlers-nepal-limited-bnl/
[5] Book: Alderson, wore & P.E. Green, " Planning & Problem Solving in Marketing,"
1964 Homewood II, Richard D. Irwin Inc.
[6] Book: Buell, Victor P; "Marketing Management", 1984 Mc Graw Hill book Company
USA.
[7] Book: Koirala, Kundan Dutta; "Marketing Management" 2057, M.K. Publishers and
Distributors Kathmandu Nepal.
[8] survey: Suroj Karmacharya, Jenny Karmacharya, Sanjay Sidai, Bipul Thapa, Debika KC,
Jeevan Kc, Sharada GC, Manju Kc, Malika Devi KC, Shamit Shrestha, Suraj Regmi,
Prashant Bhattarai, Ravi KC, Rajeev KC, Sanjita Paudel, Suyog Dahal, Aarshiya KC, Rupesh
Kumar Geeri, Sundar Pariyar, Shiva Prasad, Paudel, Rabin Naga, Ranju Thapa,
[9] Patan Multiple Campus Student
[10] Patan Multiple Campus BBS Department
[10] Bottlers Nepal LTD.

29
APPENDICES

Percentage
Others
10%

Businessmen
15%
Students
50%

Job holders
25%

Users of Coke drink - Age wise


30
25 26%
20 44% 5%
15 25%
25
10 20 20
15
5
0
Oct-20 20-30 30-40 Above-40

No. of Respondent Percentage

Percentage
8% 16%
12%

20%

44%

½ Crates 1 Crates 2 Crates 3 Crates Others

30

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