PROJECT ON

“IMPACT OF GREEN PROCESS IN THE COCA-COLA COMPANY”

FOR

“HINDUSTAN COCA-COLA BEVERAGES PVT. LTD ( RANCHI)”

SUBMITTED BY:MILI VERMAINSTITUTE OF SCIENCE AND MANAGEMENT, PUNDAG, RANCHI.

COMPANY PROFILE

Coca-cola was introduced by John Syth Pemberton, a pharmacist in 1886, Atlanta, Georgia.

He concocted caramel-colored syrup in a three legged brass kettle in his backyard.

He distributed the product by carrying it in a jug to Jacob’s pharmacy and sold it to the customers for 5 cent at the soda fountain.

Carbonated water was teamed up with new syrup that was proclaimed to be delicious and refreshing.

By the year 1886, the sale of Coca-Cola increased to nine drinks per day. Dr. Pemberton was unaware of potentiality of the beverage that he created.

Prior to his death in 1888, he sold his remaining interest of Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta.

By 1891, Candler occupied the full rights of Coca-Cola. Candler with his brother John S. Candler, Frank M. Robinson and other two associates formed a Georgia corporation named “The Coca-Cola” company.

Frank M. Robinson, Dr. Pemberton’s partner and book-keeper, suggested the name and penned “Coca-Cola” that is famous today worldwide.

CONT....

VISION :

To make every Indian’s first choice of refreshment available within easy reach.

MISSION :

To build a consumer driven customer, form profitable, sustainable and solidly responsible business in India.

CORPORATE SOCIAL RESPONSIBILITY

WATER SUSTAINIBILITY

CLIMATE CONTROL / ENVIRONMENT

HEALTHY LIVING

INCLUSIVE SOCIAL DEVELOPMENT

HCCBPL HINDUSTAN COCA-COLA BEVERAGES PVT. LTD

HISTORY The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991.

Since then its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 1.7 million retailers. Today, its brands are the leading brands in most beverage segments.

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt. Ltd which manufactures and sells concentrate and beverage bases, a Company-owned bottling entity, namely, Hindustan Coca-Cola

CONT…..

Beverages Pvt. Ltd, thirteen authorized bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers, distributors and retailers.

Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers who are authorized to use these to produce the required portfolio of beverages. These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers across India.

PRODUCTS OF COCA-COLA IN INDIA

Coca-Cola offers more than 500 brands over 200 countries. The available products are listed below in their brand order:

•Coca Cola

•Diet coke •Fanta

•Sprite

• Limca

•Thums up

•Maaza

•Kinley ( water + soda)

•Minute maid pulpy orange

•Minute maid nimbu fresh

•Burn •Schweppes

ORGANISATIONAL STRUCTURE OF HCCBPL IN SALES

HEAD OF DEPARTMENT AND SALES

HEAD OF DEPARTMENT AND SALES

SALES MANAGERSALES MANAGER

AREA SALES MANAGER

AREA SALES MANAGER

SALES TEAM LEADERSALES TEAM LEADER

MARKET DEVELOPER/ MARKET DEVELOPER

EXECUTIVE

MARKET DEVELOPER/ MARKET DEVELOPER

EXECUTIVE

ZONAL VICE PRESIDENT

ZONAL VICE PRESIDENT

COMPETITORS OF HCCBPLThe competitors to the products of the company mainly lie in the non-alcoholic beverages consisting of juice and soft drinks. Its main competitor in respect of all beverages is The PepsiCo Company. Other competitors are classified on the basis of sparkling, still beverages and water.

PESICO COCA-COLA SPARKLING PRODUCTS SPARKLING PRODUCTS

Pepsi

7UP, Mountain Dew

Nimbooz

Mirinda

Coke, Thums Up

Sprite

Limca

Fanta

CONT….

STILL BEVERAGES STILL BEVERAGES

Slice Mazza

JUICE SEGMENT JUICE SEGMENT

Tropicana Minute Maid Pulpy OrangeAnd its diff flavours.

WATER SEGMENT WATER SEGMENT

Aquafina Kinley, Bonaqua

CONT….

Other competitors are:

NESTLE COCA-COLA

Iced tea( Healthy Drink) All Colas

DABUR COCA-COLA

Real JuiceMaaza,Minute Maid

RED( Right Execution Daily) :

RED stands for Right Execution Daily. It is a survey method for the company to find out what position they occupy in the market.Hindustan Coca-Cola Beverages Pvt. Ltd is working on this parameter since Feb 2006.

The Coca-Cola Company believes that their success depends on their ability to connect with the consumers by providing them a wide variety of choices to meet their needs, wants and demands and the change in their lifestyle.

BREAK-UP OF RED SCORE:•Visi cooler part – 20 •Availability part – 70•Activation part – 10 100

Cooler StandardsPrime Position 2Brand Order(COLT-J) 4Pack Order(2 shelf IC pack) 4SOVI in Outlets 10 Total Sales 20

Availability Standards Brand Pack E&D 2 General Trade Coca-Cola IC 30 20

FC 10Maaza IC 15 10

FC 5Sprite IC 10 5

FC 5Fanta/Thums Up IC 10 5

FC 5(KO+3)/Limca IC 5 3

FC 2

Total Availability 70 70

Activation Standard E&D 2 General Trade

Price communication (min 3SKU prices to be displayed)

5

External or Internal Activation

10 5

Total Activation 10 10

PROJECT

“IMPACT OF GREEN PROCESS IN THE COCA-COLA COMPANY” GREEN - GROW BY EXCELLENCE EXECUTION INTRODUCED IN – Jan 2012OBJECTIVE – As mentioned in the Project.

INTRODUCTION

Green was introduced on January 2012. GREEN stands for Grow by Excellence Execution. It is a kind of survey method in which the company comes to know the internal factors which contribute to the sale of the product.

Before introduction of the GREEN process there were certain major issues which were not put into proper consideration due to which the company had to face many problems.

Earlier it was very difficult to find out whether the outlets are working or functioning properly or not. Cooler missing became the major concern of the top management which exerted pressure on the employees on various levels.

It was also noticed that there was only volume growth i.e. only numeric growth but no range selling. Certain products were left untouched i.e. they were not brought into the LIME LIGHT. Scenario was such, there was demand only for Thums Up and Sprite.

To capture and monitor whole market GREEN was introduced.

OBJECTIVES

• To analyse the market• To find the reason behind low productivity• To check the market share of the products• To. find out whether the products which are less in demand in the market are promoted or not• Cooler tracking• To track range selling• To track active outlets

Criteria of GREEN and its Break-UpPJP Compliance 5Call Productivity 5Unscheduled Call 5SGA/ Cooler Bill cut 50Average SKU Billed 25Unique GCC Billed 10 Total 100

6 CRITERIAS OF GREEN AND THEIR BREAK-UP:

EXPLANATION OF EACH CRITERIA:

•PJP Compliance – It refers to the no of outlets present in the PJP has to be visited. PJP stands for Permanent Journey Plan.

•Call productivity - In this criteria there should be atleast 1 case order from each outlet mentioned in the PJP.

•Unscheduled Call – In this criteria the outlets to be visited are those outlets which are not mentioned in the PJP and accounts to 5% of the mentioned PJP. •SGA/ Cooler billcut - In this criteria billcut is done of the whole month which includes 1 case order of Coca-Cola without which billing cannot be done. It is only then it is added in the billcut. If cooler billcut is less than 95% then penalty of 10 no is charged i.e. 10 no is been deducted from the overall GREEN score.

•Average SKU Billed – It consists of various range of products to be sold which includes volume ranging from the minimum to the maximum available volume of that product.

•Unique GCC Billed – In this criteria there should be atleast I case order of any Coca-Cola product and should be billed in a monthly basis.

IMPACT OF EACH CRITERIA IN THE COCA-COLA COMPANY:

•PJP Compliance – Outlet visit increased Proper attention to each outlet In touch with the retailer. •Call Productivity – Helps to check out the active outlets Numeric Distribution increased Increase in volume•Unscheduled Call – Helps in attaining urgent order Relationship with the retailer

•SGA/Cooler billcut – Helps in tracking of SGAs i.e. coolers Checks whether the cooler outlets are being billed or not. Sale of Coke.

• Average SKU Billed – Increased range selling All products are equally promoted. Increase sales.

•Unique GCC Billed – To check whether the outlet is present in the Market To keep the record of each outlet with the help of GCC code. Helps in tracking market share.

CONT….

SWOT ANALYSIS

STRENGHT:

•Increase sales and productivity

• Improve market presence.

•Helps in tracking of SGA

•.Identifies active outlet.•Helps in sale of coca-cola.•Improves productivity by covering range of products – Range selling

•Increase sale volume..

WEAKNESS:

•Difficult to maintain- This means that all the criteria are set with a target and it becomes difficult for the MD’s to achieve them fully.

•Degrade scoring can effect MD’s incentive.•In off season it becomes difficult to convince the retailer which affects sale.

•Lengthy process.

CONT….

OPPURTUNITIES:

•Helps in getting incentive to MD;s

•.Positive presence can be created in market with help of green process.

•Helps in creating new HE- If the retailer at the next door is satisfied then if becomes easy to convince the neighboring shopkeeper.

•Green score helps in promotion of MD’s •Helps in maintaining goodwill in front of seniors as well as in market too.

CONT….

THREATS:

•Can stop incentives of MD’s.

•Decrease of sale.

•Number of missing SGA can increase.

•.MD's can be transferred from their respective place - Non- performing MD can be transferred according to the management decision.

•Negative image can be formed regarding companies service.

•Difficulty can be observed in opening new HE.

CONT….

FINDINGS

Are you aware of the break up of

GREEN?

Minimum SKU proposed for 1

bill?

When 10 points is deducted as

penalty?

Are you aware of the formula for

average no. of SKU per invoice?

0%10%20%30%40%50%60%70%80%90%

100%

100% 100% 100% 100%

80%

100% 100%

70%

MDE MD

Impact of GREEN on MD’s and MDE’s: 10%

25%

50%

15%

Carrier Path Sales Volume Incentives Achieve Target

Over all Comparison of all the criteria and changes in market before and after introduction of GREEN for the last 3 years

CONT….

40.00%

54.16%

70.00%

year- 2011 year 2012 year- 2013

From the above graph it is clear that there has been certain degree of changes in the overall working and functional area in The Coca-Cola Company after introduction of GREEN Process in 2012

RESEARCH METHODOLOGY

RESEARCH DESIGN•Market visit with the MD’s to get acquainted with the work done in the market. •Sources of data collection:•Primary Source•Secondary Source

•PRIMARY SOURCE- Primary sources of data collection were:Personal ObservationPersonal interview of MD’sPersonal interview of STLSQuestionnaire filled by MDs

•SECONDARY SOURCES – Secondary sources of data collection were:Sale Presenter Green score of MD’s and Web.

CONCLUSION

•Coca-Cola is the leading soft drink brand and its leading brands are Thums Up, Sprite and Maaza.

•Prime position of Visi-Cooler outside the outlet plays an important role in selection of soft drink by the consumer.

•New strategies are adopted for certain unpopularised products. •The parameters RED and GREEN are an effective method to mark the performance of the company in the market as well as internally.

•SGA is an important asset to the company and a key source to generate sale.

•Incentive on each criteria of GREEN motivates the people to work hard

RECOMMENDATIONS

•The concept of GREEN should be clear to all the employees of every department and each level.

•Focus on every criteria is important for the overall growth in respect of sales, market share and market growth.

•GREEN should be implemented in rural areas too, if not fully than at least to keep a track of market properly.

• More attention should be given to the small outlets.

•Other than coke, other products with less demand should also be considered for the promotional strategy.

•Apart from providing commission to the H.V.O outlets, their targets should also be increased.

THANK YOU