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Transcript of Final
A SUMMER TRAINING PROJECT REPORT
ON
NEW PRODUCT DEVELOPMENT &
R.E.D. (RIGHT EXECUTION DAILY)
For the partial fulfillment of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Session 2009-2011
Under the supervision of: Submitted by:Mr. DEEP KAMAL KHURANA Ankit SrivastavAREA SALES MANAGER Roll No. 0928370004NAJIBABAD, BIJNOR.
LDC Institute of Technical Studies
1
Soraon, Allahabad.
OUTLINES OF RESEARCH PROJECT REPORT
TITLE Page
CONTENTS
• Certificate. 5
• Declaration. 6
• Preface. 7
• Acknowledgement. 8
Part: I
Chapter-1: Brief insight & mission.
A Brief Insight-The FMCG Industry in India. 10
A Brief Insight-The Beverages Industry in India. 11
Mission. 14
Chapter-2: The Coca-Cola Company.
Introduction. 15
History. 18
Production. 21
Local Competitors. 32
Advertising. 34
Organization Structure of Coca-Cola In India. 40
Coca-Cola Channel Marketing & Profits. 42
Criticism of Coca-Cola Company. 44
2
Chapter-3: Hindustan Coca-Cola Beverages Private Ltd., Najibabad.
Plant Profile. 48
Organization Structure of Sales Department in HCCBPL. 51
Products of company. 52
Quality Assurance. 69
Transportation. 73
Part: II
Chapter-4: New Product Development & Right Execution Daily (RED).
Basis of New Product Development. 78
New Product Development Process. 79
New Product Opportunity. 85
Product Development System. 86
New Product in Coca-Cola. 88
Basis of Right Execution Daily (RED). 101
Market Segmentation Model. 104
Visi-Cooler Presence & Condition. 105
RED Score Tracking. 108
Objectives of RED. 110
Part: III
Chapter-5: Finding Analysis
SWOT Analysis. 112
Chapter-6: Field Experience 114
3
Research Methodology.
Initial Stage & Later Stage 115
My Role in Project RED. 118
Findings of Project. 120
Recommendations. 121
Limitations of Project. 122
Conclusion. 124
BIBLIOGRAPHY: 125
• BOOKS
Example: - Philip Kottler – “Marketing Management”, Bound, Stash &
Others-“Marketing Research” & “Booklet of RED”, Coca-Cola India.
• WEBSITES
Example: - www.google.com & www.coca-cola.com
4
CERTIFICATE
This is to certify that the Summer Training Project Report entitled
“NEW PRODUCT DEVELOPMENT & RED (RIGHT EXECUTION DAILY) “
submitted in partial fulfillment for the award of Master of Business
Administration degree by G B Technical University, Lucknow, was carried out
by Mr. ANKIT SRIVASTAV . This has not been submitted to any other
University or Institution for the award of any degree/diploma/certificate.
Dr. K. VENKAIAH BABUHead of the Department
DECLARATION
5
I hereby declare that this Summer Training Project Report entitled
“NEW PRODUCT DEVELOPMENT & RED (RIGHT EXECUTION
DAILY)” submitted by me to LDC Institute of Technical Studies,
Allahabad, is bonafide work undertaken by me and it is not
submitted to any other University or Institution for the award of
any degree/diploma/ certificated or published any time before.
(ANKIT SRIVASTAV)
PREFACE
“Acceptance of New challenge makes the path For Future success”
Master of Business Administration is a course, which combines both
theory and its applications as its contents of study in the field of
6
management. As part and parcel of this course, every aspirant has to
undergo an ‘in – company training’ in an organization. The purpose of this
training is to expose the student of management sciences with real life
situations existing in the organization and to provide an insight into the
various functions who can visualize things what they have been taught in
classrooms. Actually, it is the life force of management. It is in practical
training that the effectiveness of management itself is realized. I was
fortunate enough to do my training in Coca-Cola Company.
As a complementary to training, every trainee has to prepare and
submit a report on the working of the organization. This report is in
continuation of that tradition. It is an attempt to present an account of
practical knowledge and observations gathered during the training.
7
Acknowledgement
This project bears the imprint of many people who were either directly
or indirectly involved in the successful completion of this project work.
I am grateful to Dr. K.Venkaiah Babu, Head of Department of LDC
INTISTUTE OF TECHNICAL STUDIES, ALLAHABAD, for giving me the
opportunity to work on a project. I am thankful to Deep Kamal Khurana for
assigning me this project and also help me to handle the project.
I would also thankful to my Area Sales Executive Mr. Rohit
Tondon for help me this project. Last but not least, I extend a special
thanks to my parents and my brother Mr. Ashish Srivastav for their
committed support, devotion and co-operation.
(Ankit Srivastav)
8
Part: I
9
Chapter-1: Brief insight & mission
A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA: -
Fast Moving Consumer Goods (FMCG), also known as Consumer
Packaged Goods (CPG) is products that have a quick turnover and
relatively low cost. Consumers generally put less thought into the purchase
of FMCG than they do for other products.
The Indian FMCG industry witnessed significant changes through the
1990s. Many players had been facing severe problems on account of
increased competition from small and regional players and from slow
growth across its various product categories. As a result, most of the
companies were forced to revamp their product, marketing, distribution and
customer service strategies to strengthen their position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry
had changed significantly. With the liberalization and growth of the Indian
economy, the Indian customer witnessed an increasing exposure to new
domestic and foreign products through different media, such as television
and the Internet.
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Though the absolute profit made on FMCG products is relatively
small, they generally sell in large numbers and so the cumulative profit on
such products can be large. Unlike some industries, such as automobiles,
computers, and airlines, FMCG does not suffer from mass layoffs every
time the economy starts to dip. A person may put off buying a car but he
will not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner
irrespective of global market dip, because they generally satisfy rather
fundamental, as opposed to luxurious needs. The FMCG sector, which is
growing at the rate of 9% is the fourth largest sector in the Indian Economy
and is worth Rs.93000 Crores. The main contributor, making up 32% of the
sector, is the South Indian region. It is predicted that in the year 2010, the
FMCG sector will be worth Rs.143000 Crores. The sector being one of the
biggest sectors of the Indian Economy provides up to 4 million jobs.
BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT:-
In India, beverages form an important part of the lives of people. It is an
industry, in which the players constantly innovate, in order to come up with
11
better products to gain more consumers and satisfy the existing
consumers.
12
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-Carbonated
Cola Non-Cola Non-Cola
BEVERAGE INDUSTRY IN INDIA
The beverage industry is vast and there various ways of segmenting it,
so as to cater the right product to the right person. The different ways of
segmenting it are as follows:
Alcoholic, non-alcoholic and sports beverages
Natural and Synthetic beverages
In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for
senior citizens.
Segmentation based on the amount of consumption i.e. high levels of
consumption and low levels of consumption.
The credibility and trust needs to be built so that there is a very strong
and safe feeling that the consumers have while consuming the
beverages.
Communication should be relevant and trendy so that consumers are
able to find an appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also
a wider spread of distribution. It is important to look at the entire beverage
market, as a big opportunity, for brand and sales growth in turn to add up to
the overall growth of the food and beverage industry in the economy.
13
THE CREATOR OF COCA COLA
John Pemberton invented Coke in 1886
MISSION
To Refresh the World... In body, mind, and spirit
To Inspire Moments of Optimism... Through our brands and our
actions
To Create Value and Make a Difference... Everywhere we engage.
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Chapter-2:The Coca-Cola Company
Coca-Cola, the product that has given the world its best-known taste was
born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s
leading manufacturer, marketer and distributor of non-alcoholic beverage
concentrates and syrups, used to produce nearly 400 beverage brands. In addition
to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola
Company began building its global network in the 1920s. Now operating in more
than 200 countries and producing nearly 400 brands, the Coca-Cola system has
successfully applied a simple formula on a global scale: “Provide a moment of
refreshment for a small amount of money- a billion times a day.”
The Coca-Cola Company and its network of bottlers comprise the most
sophisticated and pervasive production and distribution system in the world. The
Company aims at increasing shareowner value over time. The associates of this
Company jointly take responsibility to ensure compliance with the framework of
policies and protect the Company’s assets and resources whilst limiting business
risks. Coca-Cola is made up of 7000 local employees, 500 managers, over 60
manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17
Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract
Packers that facilitate the manufacture process of a range of products for the
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company. It also has a supporting distribution network consisting of 700,000 retail
outlets and 8000 distributors. Almost all goods and services required to cater to the
Indian market are made locally, with help of technology and skills within the
Company. The complexity of the Indian market is reflected in the distribution fleet,
which includes different modes of distribution, from 10-tonne trucks to open-bay
three wheelers that can navigate through narrow alleyways of Indian cities and
trademarked tricycles and pushcarts.
LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA
16
COCA COLA
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending
machines in more than 200 countries. It is produced by The Coca-Cola Company
and is often referred to simply as Coke. 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 actually produces concentrate, which is then sold to various
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 in cans and bottles 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 fountain sales 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, which has
become a major diet cola. However, others exist, including Diet Coke Caffeine-
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Free, Cherry Coke, Coca-Cola Zero, Vanilla Coke and special editions with lemon
and with lime and even with coffee.
In response to consumer insistence on a more natural product, the company
is in the process of phasing E211 or Sodium Benzoate, the controversial additive
linked to DNA damage and hyperactivity in children, out of Diet Coke. The
company has stated that it plans to remove the controversial additive from its other
products - including Sprite, and Oasis - as soon as a satisfactory alternative is
discovered.
History:
Old German Coca-Cola bottle opener.
The first Coca-Cola recipe was invented in Columbus, Georgia at a
drugstore by John Stith Pemberton, originally as a cocawine called
Pemberton's French Wine Coca in 1885. He may have been inspired by the
formidable success of European Angelo Mariani's cocawine, Vin Mariani.
In 1886, when Atlanta and Fulton County passed prohibition
legislation, Pemberton responded by developing Coca-Cola, essentially a
carbonated, non-alcoholic version of French Wine Cola.
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The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May
8, 1886 It was initially sold as a patent medicine for five cents a glass at
soda fountains, which were popular in the United States at the time due to
the belief that carbonated water was good for the health Pemberton
claimed Coca-Cola cured many diseases, including morphine addiction,
dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the
first advertisement for the beverage on May 29 of the same year in the
Atlanta Journal. For the first eight months only nine drinks were sold each
day.[citation needed]
By 1888, three versions of Coca-Cola — sold by three separate
businesses — were on the market. Asa Griggs Candler acquired a stake in
Pemberton's company in 1887 and incorporated it as the Coca Cola
Company in 1888 The same year, while suffering from an ongoing
addiction to morphine, Pemberton sold the rights a second time to four
more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H.
Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton
began selling his own version of the product.
In an attempt to clarify the situation, John Pemberton declared that
the name Coca-Cola belonged to Charley, but the other two manufacturers
could continue to use the formula. So, in the summer of 1888, Candler sold
19
his beverage under the names Yum Yum and Koke. After both failed to
catch on, Candler set out to establish a legal claim to Coca-Cola in late
1888, in order to force his two competitors out of the business. Candler
purchased exclusive rights to the formula from John Pemberton, Margaret
Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to
claim her signature on the bill of sale had been forged, and subsequent
analysis has indicated John Pemberton's signature was most likely a
forgery as well.
In 1892, Candler incorporated a second company, The Coca-Cola
Company (the current corporation), and in 1910, Candler had the earliest
records of the company burned, further obscuring its legal origins.
Regardless, Candler began marketing the product, although the efficacy of
his concerted advertising campaign would not be realized until much later.
By the time of its 50th anniversary, the drink had reached the status of a
national icon for the USA. In 1935, it was certified kosher by Rabbi Tobias
Geffen, after the company made minor changes in the sourcing of some
ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894.
Cans of Coke first appeared in 1955. The first bottling of Coca-Cola
occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in
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1891. Its proprietor was Joseph A. Biedenharn. The original bottles were
Biedenharn bottles, very different from the much later hobble-skirt design
that is now so familiar.
Asa Candler was tentative about bottling the drink, but the two
entrepreneurs who proposed the idea were so persuasive that Candler
signed a contract giving them control of the procedure. However, the
loosely termed contract proved to be problematic for the company for
decades to come. Legal matters were not helped by the decision of the
bottlers to subcontract to other companies—in effect, becoming parent
bottlers.
Coke concentrate, or Coke syrup, was and is sold separately at
pharmacies in small quantities, as an over-the-counter remedy for nausea
or mildly upset stomach.
Production:
New Coke
On April 23, 1985, Coca-Cola, amid much publicity, attempted to
change the formula of the drink with "New Coke." Follow-up taste tests
revealed that most consumers preferred the taste of New Coke to both
21
Coke and Pepsi. Coca-Cola management was unprepared, however, for
the nostalgic sentiments the drink aroused in the American public. The new
Coca-Cola formula caused a public backlash. Protests caused the
company to return to the old formula under the name Coca-Cola Classic on
July 10, 1985.
21st century
On February 7, 2005, the Coca-Cola Company announced that in the
second quarter of 2005 they planned a launch of a Diet Coke product
sweetened with the artificial sweetener sucralose ("Splenda"), the same
sweetener currently used in Pepsi One On March 21, 2005, it announced
another diet product, "Coca-Cola Zero", sweetened partly with a blend of
aspartame and acesulfame potassium Recently Coca-Cola has begun to
sell a new "healthy soda" Diet Coke with Vitamins B6, B12, Magnesium,
Niacin, and Zinc, marketed as "Diet Coke Plus".
On July 05, 2005, it was revealed that Coca-Cola would resume operations
in Iraq for the first time since the Arab League boycotted the company in
1968. In April 2007, in Canada, the name "Coca-Cola Classic" was
changed back to "Coca-Cola". The word "Classic" was truncated because
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"New Coke" was no longer in production, eliminating the need to
differentiate between the two. The formula remained unchanged.
Use of stimulants in formula
When launched Coca Cola's two key ingredients were cocaine
(benzoylmethyl ecgonine) and caffeine. The cocaine was derived from the
coca leave and the caffeine from kola nuts - Coca-Cola (the 'K' in Kola was
replaced with a C for marketing purposes).
Coca - Cocaine
Pemberton called for five ounces of coca leaf per gallon of syrup, a
significant dose, whereas, in 1891, Candler claimed his formula (altered
extensively from Pemberton's original) contained only a tenth of this
amount. Coca Cola did once contain an estimated nine milligrams of
cocaine per glass, but in 1903 it was removed Coca Cola still contains coca
flavoring.
After 1904, Coca Cola started using, instead of fresh leaves, "spent"
leaves - the leftovers of the cocaine-extraction process with cocaine trace
levels left over at a molecular level. To this day, Coca Cola uses as an
23
ingredient a cocaine free coca leaf extract prepared at a Stepan Company
plant in Maywood, New Jersey.
In the United States, Stepan Company is the only manufacturing
plant authorized by the Federal Government to import and process the
coca plant Stepan laboratory in Maywood, N.J., is the nation's only legal
commercial importer of coca leaves, which it obtains mainly from Peru and,
to a lesser extent, Bolivia. Besides producing the coca flavoring agent for
Coca Cola, Stepal Company extracts cocaine from the coca leaves, which
it sells to Mallinckrodt Inc, a St. Louis pharmaceutical manufacturer that is
the only company in the United States licensed to purify cocaine for
medicinal use N.J. Stepan buys about 100 metric tons of dried Peruvian
coca leaves each year, said Marco Castillo, spokesman for Peru's state-
owned National Coca Co.
Kola Nuts - Caffeine
Kola nuts act as a flavoring in Coca Cola, but are also the beverage's
source of caffeine. In Britain, for example, the ingredient labels states
"Flavorings (Including Caffeine)". Kola nuts contain about 2 to 3.5 percent
caffeine, are of bitter flavor and are commonly used in cola soft drinks. In
1911 The US government initiated United States v. Forty Barrels and
24
Twenty Kegs of Coca-Cola, hoping to force Coca Cola to remove caffeine
from its formula. The case was decided in flavor of Coca Cola.
Subsequently, in 1912 the US Pure Food and Drug Act was amended,
adding caffeine to the list of "habit-forming" and "deleterious" substances
which must be listed on a product's label.
Coca Cola contains 46 mg/12 fl oz of caffeine, while Diet Coke Caffeine-
Free contains 0 mg. Caffeine may be used by athletes as ergogenic aid - to
increasing the capacity for mental or physical labor. The ergogenic qualities
of caffeine are contested, although there is strong evidence that it may
significantly enhance endurance performance. For this reason, caffeine is
listed as a restricted substance by the International Olympic Committee
(IOC). Nevertheless Coca Cola was the leading sponsor of the 1996
summer Olympic Games
The exact formula of Coca-Cola is a famous trade secret. The original copy
of the formula is held in SunTrust Bank's main vault in Atlanta. Its
predecessor, the Trust Company, was the underwriter for the Coca-Cola
Company's initial public offering in 1919. A popular myth states that only
two executives have access to the formula, with each executive having only
half the formula] The truth is that while Coca-Cola does have a rule
restricting access to only two executives, each knows the entire formula
25
and others, in addition to the prescribed duo, have known the formulation
process.
Franchised production model
The actual production and distribution of Coca-Cola follows a
franchising model. The Coca-Cola Company only produces a syrup
concentrate, which it sells to various bottlers throughout the world who hold
Coca-Cola franchises for one or more geographical areas. The bottlers
produce the final drink by mixing the syrup with filtered water and sugar (or
artificial sweeteners) and then carbonate it before filling it into cans and
bottles, which the bottlers then sell and distribute to retail stores, vending
machines, restaurants and food service distributors
The Coca-Cola Company owns minority shares in some of its largest
franchises, like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola
Hellenic Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully
independent bottlers produce almost half of the volume sold in the world.
Since independent bottlers add sugar and sweeteners, the sweetness of
the drink differs in various parts of the world, to cater for local tastes
26
Brand portfolio
Name Launched Discontinued Notes
Coca-Cola 1886
Coca-Cola Cherry
1985
Coca-Cola with Lemon
2001 2005
Still available in: American Samoa, Austria, Australia, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina, Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, Norway, Philippines, Reunion, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Tunisia, United States, and West Bank-Gaza
Coca-Cola Vanilla
2002 2005Still available in: Austria, Australia, China, Germany, Hong Kong, South Africa, New Zealand (600ml and 350 ml only) and Russia
2007 It was reintroduced in June 2007 by popular demand
Coca-Cola C2
2004 2007 Was only available in Japan, Canada, and the United States.
Coca-Cola with Lime
2005Still available in Belgium, Singapore
Coca-Cola Raspberry
June 2005 End of 2005 Was only available in New Zealand.
Coca-Cola M5
2005Only available in Federation of Bosnia and Herzegovina, Germany, Italy, Spain, Mexico and Brazil
Coca-Cola Black Cherry Vanilla
2006Middle of 2007
Was replaced by Vanilla Coke in June 2007
Coca-Cola Blāk
2006Beginning of 2008
Only available in the United States, France, Canada, Czech Republic, Federation of Bosnia and Herzegovina, Bulgaria and Lithuania
Coca-Cola Citra
2006 Only available in Federation of Bosnia and Herzegovina, New Zealand and Japan.
Coca-Cola Light Sango
2006 Only available in France and Belgium.
Coca-Cola-Orange
2007 Only available in United Kingdom
Fanta Apple
2009 Available in India
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Bottle and logo design
The famous Coca-Cola logo was created by John Pemberton's
bookkeeper, Frank Mason Robinson, in 1885 It was Robinson who came
up with the name, and he also chose the logo’s distinctive cursive script.
The typeface used, known as Spencerian script, was developed in the mid
19th century and was the dominant form of formal handwriting in the United
States during that period.
Earl R.Dean's original 1915 concept drawing of the contour Coca-Cola
bottle.
Dean reduced the middle diameter...and the famous Contour Coca-Cola
Bottle was born.
The prototype never made it to production since its middle diameter
was larger than its base. This would make it unstable on conveyor belts.
The equally famous Coca-Cola bottle, called the "contour bottle"
within the company, but known to some as the "hobble skirt" bottle, was
created in 1915 by bottle designer, Earl R. Dean. In 1915, the Coca-Cola
Company launched a competition among its bottle suppliers to create a
new bottle for the beverage that would distinguish it from other beverage
28
bottles... "a bottle which a person could recognize even if they felt it in the
dark, and so shaped that, even if broken, a person could tell at a glance
what it was" Chapman J. Root, president of the Root Glass Company,
turned the project over to members of his supervisory staff including
company auditor T. Clyde Edwards, plant superintendent Alexander
Samuelsson and Earl R. Dean, bottle designer and supervisor of the bottle
molding room.
Root and his subordinates decided to base the bottle’s design on one
of the soda’s two ingredients, the coca leaf or the cola nut, but were
unaware of what either ingredient looked like. Dean and Edwards went to
the Emeline Fairbanks Memorial Library and were unable to find any
information about coca or cola. Instead they were inspired by a picture of
the gourd-shaped cocoa pod in the Encyclopedia Britannica which
Chapman Root approved as the model for the prototype.[39]
Faced with the upcoming scheduled maintenance of the mold-making
machinery, over the next 24 hours Dean sketched out and created the mold
for the bottle. Dean then molded a small number of bottles before the
glass-molding machinery was turned off.
29
Chapman Root approved the prototype bottle and a design patent
was issued on the bottle in November, 1915. The bottle was chosen over
other entries at the bottler’s convention in 1916 and was on the market the
same year. By 1920, Dean’s contoured bottle became the standard for the
Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the
most recognized packages on the planet..."even in the dark!"
As a reward for his efforts, Dean was offered a choice between a
$500 bonus or a lifetime job at the Root Glass Company. He chose the
lifetime job and kept it until the Owens-Illinois Glass Company bought out
the Root Glass Company in the mid 1930s. Dean went on to work in other
Midwestern glass factories.
Although endorsed by some, this version of events is not considered
authoritative by many who cite its implausibility as difficult to believe. One
alternative depiction has Raymond Loewy as the inventor of the unique
design, but although Loewy did serve as a designer of Coke cans and
bottles in later years, he was in the French Army in the year the bottle was
invented and did not migrate to the United States until 1919. Others have
attributed inspiration for the design not to the cacao pod, but to a Victorian
hooped dress.
30
In 1997, Coca-Cola also introduced a "contour can", similar in shape
to their famous bottle, on a few test markets, including Terre Haute,
Indiana. This new can was however never widely released.
A new slim and tall can has begun to appear in Australia as of
December 20, 2006, which costs an average of $2AUD. The cans have a
distinct resemblance to energy drinks that are popular with the teenage
demographic. It is unknown if this design is of limited edition or may soon
replace the current 355 ml cans that have been used in the past (the new
slim cans are 300 ml, making the volume to cost ratio even smaller).
In January 2007, Coca-Cola Canada changed "Coca-Cola Classic"
labelling, removing the "Classic" designation, leaving only "Coca-Cola".
Coca-Cola stated this is merely a name change and the product remains
the same. The cans still bear the "Classic" logo in the United States.
Coca-Cola in the new aluminum bottle.
Coca-Cola is a registered trademark in most countries around the
world and should always be written with the hyphen and not as "Coca
Cola". The US trademark was registered in the United States Patent Office
on 31 January 1893. In the UK Coca-Cola was registered with the UK
Patent Office on 11 July 1922, under registration number 427817.
31
In 2007, Coca-Cola introduced an aluminum can that is designed to
look like the original glass bottles that Coca-Cola was first distributed in .
In 2007, the Coca-Cola logo on cans and bottles has changed,
retaining the red color and familiar typeface but taking branding back in
time by removing much of the clutter on the can, leaving only the logo and
a plain white swirl-- the "dynamic ribbon".
In 2008, the Coca-Cola plastic bottles for all Coke varieties was
changed with a new plastic screw cap and contoured bottle shape
designed to evoke the old glass bottles.
Local competitors
Pepsi is often second to Coke in terms of sales, but outsells Coca-
Cola in some localities. Around the world, some local brands do compete
with Coke. In South and Central America, Kola Real, known as Big Cola in
Mexico, is a fast growing competitor to Coca-Cola On the French island of
Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a
growing competitor to Coca-Cola. In the French region of Bretagne, Breizh
Cola is available. In Peru, Inca Kola outsells Coca-Cola. However, The
Coca-Cola Company purchased the brand in 1999. In Sweden, Julmust
32
outsells Coca-Cola during the Christmas season. In Scotland, the locally-
produced Irn-Bru was more popular than Coca-Cola until 2005, when
Coca-Cola and Diet Coke began to outpace its sales In India, Coca-Cola
ranked third behind the leader, Pepsi-Cola, and local drink Thums Up.
However, The Coca-Cola Company purchased Thums Up in 1993 As of
2004, Coca-Cola held a 60.9% market-share in India Tropicola, a domestic
drink, is served in Cuba instead of Coca-Cola, in which there exists a
United States embargo. Mecca Cola and Qibla Cola, in the Middle East, is
a competitor to Coca-Cola. In Turkey, Cola Turka is a major competitor to
Coca-Cola. In Iran and also many countries of Middle East, Zam Zam Cola
and Parsi Cola are major competitors to Coca-Cola. In some parts of
China, Future cola can be bought. In Slovenia, the locally-produced Cockta
is a major competitor to Coca-Cola, as is the inexpensive Mercator Cola,
which is sold only in the country's biggest supermarket chain, Mercator. In
Madagascar, Classiko Cola, made by Tiko Group, the largest
manufacturing company in the country, is a serious competitor to Coca-
Cola in many regions. On the Portuguese island of Madeira, Laranjada is
the top selling soft drink. In the UK Coca-Cola stated that Pepsi was not its
main rival, but rather Robinsons drinks.
33
Advertising
A 1890s advertisement showing model Hilda Clark in formal 19th
century attire. The ad is entitled Drink Coca-Cola 5¢.
Coca-Cola's advertising has had a significant impact on American
culture, and is frequently credited with the "invention" of the modern image
of Santa Claus as an old man in red-and-white garments; however, while
the company did in fact start promoting this image in the 1930s in its winter
advertising campaigns, it was already common before that. In fact, Coca-
Cola was not even the first soft drink company to utilize the modern image
Santa Claus in its advertising – White Rock Beverages used Santa in
advertisements for its ginger ale in 1923 after first using him to sell mineral
water in 1915
Before Santa Claus, however, Coca-Cola relied on images of smartly-
dressed young women to sell its beverages. Coca-Cola's first such
advertisement appeared in 1895 and featured a young Bostonian actress
named Hilda Clark as its spokesperson.
34
In the 1970s, a song from a Coca-Cola commercial called "I'd Like to
Teach the World to Sing", produced by Billy Davis, became a popular hit
single.
Coca-Cola has a policy of avoiding using children younger than the
age of 12 in any of its advertising. This decision was made as a result of a
lawsuit from the beginning of the 20th century that alleged that Coke's
caffeine content was dangerous to children. However, in recent times, this
has not stopped the company from targeting young consumers.
Coke's advertising is rather pervasive, as one of Woodruff's stated
goals was to ensure that everyone on Earth drank Coca-Cola as their
preferred beverage. This is especially true in southern areas of the United
States, such as Atlanta, where Coke was born.
Some of the memorable Coca-Cola television commercials between
1960 through 1986 were written and produced by former Atlanta radio
veteran Don Naylor (WGST 1936-1950, WAGA 1951-1959) during his
career as a producer for the McCann Erickson advertising agency. Many of
these early television commercials for Coca-Cola featured movie stars,
sports heroes, and popular singers of the day.
35
During the 1980s, Pepsi-Cola ran a series of television
advertisements showing people participating in taste tests essentially
demonstrating that: "Fifty percent of the participants who said they
preferred Coke actually chose the Pepsi". Statisticians were quick to point
out the problematic nature of a 50/50 result; that most likely all this really
showed was that in blind tests, most people simply cannot tell the
difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's
ads in an incident sometimes referred to as the cola wars; one of Coke's
ads compared the so-called Pepsi challenge to two chimpanzees deciding
which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership
in the market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of
her death. She filmed three commercials for the company. In 1994 to
commemorate her 5 years with the company, Coca-Cola issued special
Selena coke bottles
In an attempt to broaden its portfolio, Coca-Cola purchased Columbia
Pictures in 1982. Columbia provided subtle publicity through Coke product
placements in many of its films while under Coke's ownership. However,
after a few early successes, Columbia began to under-perform, and was
dropped by the company in 1989.
36
Coca-Cola has gone through a number of different advertising
slogans in its long history, including "The pause that refreshes", "I'd like to
buy the world a Coke", and "Coke is it" (see Coca-Cola slogans).
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty
campaign where consumers earn virtual "points" by entering codes from
special marked packages of Coca-Cola products into a website. These
points can in turn be redeemed for various prizes or sweepstakes entries
Sponsorship of sporting events
Coca-Cola was the first-ever sponsor of the Olympic games, at the
1928 games in Amsterdam and has been an Olympics sponsor ever since.]
This corporate sponsorship included the 1996 Summer Olympics hosted in
Atlanta, which allowed Coca-Cola to spotlight its hometown. Since 1978
Coca-Cola has sponsored each FIFA World Cup and other competitions
organized by FIFA. In fact, one of the FIFA tournament trophy: FIFA World
Youth Championship from Tunisia in 1977 to Malaysia in 1997 was called
"FIFA - Coca Cola Cup".[54] In addition, Coca-Cola sponsors the annual
Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at
Lowe's Motor Speedway in Charlotte, North Carolina and Daytona
International Speedway in Daytona, Florida. Coca-Cola has a long history
37
of sports marketing relationships, which over the years have included Major
League Baseball, the National Football League, National Basketball
Association and the National Hockey League, as well as with many teams
within those leagues. Coca-Cola is the official soft drink of many collegiate
football teams throughout the nation.
In India Coca Cola was the one of the official Sponsors of the 1996
Cricket World Cup.
In England, Coca-Cola is the main sponsor of The Football League, a
name given to the three professional divisions below the Premier League in
football (soccer). It is also responsible for the renaming of these divisions-
until the advent of Coca-Cola sponsorship; they were referred to as
Divisions One, Two and Three. Since 2004, the divisions have been known
as The Championship (equiv. of Division 1), League One (equiv. of Div. 2)
and League 2 (equiv. of Division 3). This renaming has caused unrest
amongst some fans that see it as farcical that the third tier of English
Football is now called "League One." In 2005 Coca-cola launched a
competition for the 72 clubs of the football league - it was called "Win a
Player". These allowed fans to place 1 vote per day for their beloved club,
with 1 entry being chose at random earning £250,000 for the club. This was
repeated in 2006. The "Win a Player" competition was very controversial,
38
as at the end of the 2 competitions, Leeds United AFC had the most votes
by more than double, yet they did not win any money to spend on a new
player for the club. In 2007 the competition changed to "Buy a Player". This
competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-Cola
and submit the code on the wrapper on the Coca-Cola website {www.coca-
colafootball.co.uk}. This code could then earn anything from 50p to
£100,000 for a club of their choice. This competition was favored over the
old "Win A Player" competition as it allowed all clubs to win some money,
instead of all the money going to one winning club.
39
ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA
40
Chief Executive Officer
Vice President Supply Chain
Chief Finance Officer
Human Resource Director
Vice President BSG
Regional Vice President (North)
Regional Vice President (Central)
41
Region VicePresident
AGM/AOD Unit 1
AGM/AOD Unit 2
AGM/AODUnit 3
AGM/AODUnit4
Region Finance
Region Human Resource
Region Customer Service
Region External Affairs
Region Cold Drink
Region Legal
Region BSG
Region Director/Manager Market Execution
Region Capability Management
Region Channel
Coca Cola Channel Marketing and Profits
Coca Cola has managed their company marketing and sales strategy
within channels. Have you ever considered the significance of the Coke
vending machine to the success
and profitability of the Coca Cola company? This channel is direct to
consumer and vending machines often have little to no competition and no
trade or price promotions. Develop solutions for groups of customers and
deploy your benefit throughout the channel as compared to forcing a broad
solution onto multiple customer types.
For many food companies, the answer to this single question can point to
sizeable new profits and opportunities for growth via adding new sales
channels and opening new markets with profits and speed.
The Coke Company operates three primary delivery systems for its
business channels:
42
• Bulk delivery for the channels of large Supermarkets, Mass
Merchandisers and
Club stores;
• For smaller channels Coke does advanced sale delivery for convenience
stores, drug stores, small supermarkets and on-premise fountain
accounts.
• Full service delivery for its full service vending customers.
Key Channel Listing
Supermarkets
Convenience Stores
Fast Food
Petroleum Retailers
Chain Drug Stores
Hotels/Motels/Resorts
Mass Merchandisers
U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and
DECA
Vending
If you noticed the growth of tractor trailer deliveries by Coke into C-Stores
and other channels in the past year or so, you noticed their new delivery
scheme. In 2006, the Company began changing its delivery method for its
route delivery system. Historically, the Company loaded its trucks at a
43
warehouse with products the route delivery employee would deliver. The
delivery employee was responsible for pulling the required products off a
side load truck at each customer location to fill the customer's order. Coke
began using a new Coo Lift® delivery system in 2006 in a portion of the
Company's territory which involves pre-building orders in the warehouse on
a small pallet the delivery employee can roll off a truck directly into the
customer's location. The Coo Lift® delivery system involves the use of a
rear loading truck rather than a conventional side loading truck. Coke
anticipates the implementation of this delivery system will continue over the
next several years. This rollout required additional capital spending for the
rear loading delivery vehicle. The Company anticipates that this change in
delivery methodology will result in significant savings in future years and
more efficient delivery of a greater number of products.
CriticismsIt has been suggested that some of the information in this article's Criticism
or Controversy section(s) be merged into other sections to achieve a more neutral
presentation.
The Coca-Cola Company has been criticized for its business practices as
well as the alleged adverse health effects of its flagship product. A common
criticism of Coke based on its allegedly toxic acidity levels has been found to be
44
baseless by researchers; lawsuits based on these criticisms have been dismissed by
several American courts for this reason.
Since there are indications that "soda and sweetened drinks are the main
source of calories in [the] American diet,"] most nutritionists advise that Coca-Cola
and other soft drinks can be harmful if consumed excessively, particularly to young
children whose soft drink consumption competes with, rather than complements, a
balanced diet. Studies have shown that regular soft drink users have a lower intake
of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A The drink has also
aroused criticism for its use of caffeine, due to the possibility of physical
dependence A link has been shown between long-term regular cola intake, of
which Coca-Cola is the most consumed brand worldwide, and osteoporosis in
older women (but not men)This was thought to be due to the presence of
phosphoric acid, and the risk was found to be same for caffeinated and no
caffeinated colas, as well as the same for diet and sugared colas.
Although numerous court cases have been filed against The Coca-Cola
Company since the 1920s, alleging that the acidity of the drink is dangerous, no
evidence corroborating this claim has been found. Under normal conditions,
scientific evidence indicates Coca-Cola's acidity causes no immediate harm.
45
There is also some concern regarding the usage of high fructose corn syrup
in the production of Coca-Cola. Since 1985 in the U.S., Coke has been made with
high fructose corn syrup, instead of sugar glucose or fructose, to reduce costs. This
has come under criticism because of concerns that the corn used to produce corn
syrup may come from genetically altered plants. Some nutritionists also caution
against consumption of high fructose corn syrup because of possible links to
obesity and type-2 diabetes.
In India, there exists a major controversy concerning pesticides and other
harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for
Science and Environment (CSE), a non-governmental organization in New Delhi,
said aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and Coca-Cola, contained toxins including lindane,
DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer and a
breakdown of the immune system. Tested products included Coke, Pepsi, and
several other soft drinks, many produced by the Coca-Cola Company. CSE found
that the Indian produced Pepsi's soft drink products had 36 times the level of
pesticide residues permitted under European Union regulations; Coca-Cola's soft
drink was found to have 30 times the permitted amount. CSE said it had tested the
same products sold in the US and found no such residues. After the pesticide
allegations were made in 2003, Coca-Cola sales declined by 15%. In 2004, an
46
Indian parliamentary committee backed up CSE's findings, and a government-
appointed committee was tasked with developing the world's first pesticide
standards for soft drinks. The Coca-Cola Company has responded that its plants
filter water to remove potential contaminants and that its products are tested for
pesticides and must meet minimum health standards before they are distributed. [63]
In the Indian state of Kerala, sale and production of Coca-Cola, along with other
soft drinks, was initially banned, before the High Court in Kerala overturned the
ban ruling that only the federal government can ban food products. Coca-Cola has
also been accused of excessive water usage in India.
47
Chapter 3: Hindustan Coca-Cola Beverages
Pvt. Ltd. Najibabad
Plant Profile
Najibabad plant (the company) is spread over an area of about 50
thousand square meter. The plant was established in 1983 as Mansarover
Bottling Company Ltd. This plant was a franchise outlet for Parle Exports
Bombay.
As per the BIFR ruling, coca-cola took over this plant on 14th Feb.
And absorbed all the 275 permanent employees.
The only major change in the operational set up was the appointment of a
General Manager and a Finance Manager. This change led to a certain
amount of distrust and uncertainty among the employees. This feeling was
further strengthened ,when certain employees who in the past were high in
the hierarchy were left with limited authority and responsibility .A change in
the management of decision making.
48
The Najibabad bottling plant’s product line consists of the
following:
Coke
Thums UP
Sprit
Fanta
Maaza
Kinley Soda
Limca
The plant procures the concentrate required for producing the soft
drinks from Pune .The cans and the pet bottles for all the soft drink and
procured from Pune and Ghaziabad. The plant produces both 300 ml and
200ml of Coke. Coca-cola India has also introduced Maaza tetra packs that
are produced in Bhopal and then distributed in the region.
49
Capacity of the plant
The product is seasonal in nature thus the production depends upon
the seasons. The peak season when the production is the maximum is
between April and July.
The per day peak production capacity is as follows:
Aerated Drinks: 23,000 Crates
Maaza : 10,000 Crates
The per day production during non-peak season is as per demand.
The plant has three bottling lines. Two bottling lines produced aerated
drinks and the line produces a non- aerated drink i.e., Maaza.
-Aerated Drink:
Lin 1: 340 Bottles per minute.
Line 2: 200 Bottles per minute.
-Non- Aerated Drink:
Line 3: 240 Bottles per minute.
The number of hours the machines woks depends upon the season
and the demand .During the peak season the machines run approximately
for 16 hrs-24 hrs. But during the non peak season the plant is closed down
for maintenance from the month of November till January .Other than this,
the plant is operated according to market demand.
50
Organization structure of the sales
Department in Hccbpl
51
AGM/AOD
Plant Manager
Route to Market
Human ResourceManager
Finance Manager
General Sales
Manager
Area Sales
Manager
ChannelManager
Area Capabilit
yManager
Sales Executive
Sales Trainers
Market Develope
r
Distributors
AndSalesmen
Marketing
Key Accounts
MARKETING MIX OF H.C.C.B.P.L
The Coca-Cola Company offers a wide range of products to the
customers including beverages, fruit juices and bottled mineral water. The
Company is always looking to innovate and come up with, either complete
new products or new ways to bottle or pack the existing drinks. The Coca-
Cola Company has a wide range of products out of which the following
products are marketed by HCCBPL:
Products of Company
In the Cola Section:
THUMS UP
‘Strong cola Taste, exciting personality’
Thums up is the leading carbonated soft drink and trusted brand in India.
Originally introduced in 1977 it was acquired by the Coca-Cola
Company in 1993. It is known for its strong fizzy taste and it’s confident,
52
mature and uniquely masculine attitude. This brand clearly seeks to
separate the men from the boys.
Volumes of the thumps up
It has dark brown color with very high content of CO2 which makes the
Cola flavor is very strong .It is available in different volumes in the
market likes-
200 ml glass bottle.
300 ml glass bottle.
350 ml express pack.
330 ml can.
600 ml pet bottle.
1.25lt pet bottle.
2lt bottle.
53
DIET COKE
“Looking good and tasting great”
Diet coke was born in 1982 and quickly became the No.1 sugar free drink
in diet conscious America, known as Diet coke in the U.S. ,Canada,
Australia and great Britain and coca-cola light in other countries ,it now the
No.3 soft drink in the world. It’s the drink for people who want no calories,
but plenty of taste. Ad campaigns around the world for diet coke share a
playful, sophisticated and sexy attitude.
Visit our Audio/Video center to witness how the Diet coke north American
ad campaign celebrates the real and human attributes that make people
alluring in the eyes of others.
54
Coca- Cola
Cola-cola is the most popular and biggest selling soft drinks in
history, as well as the best known product in the world. Created by
Dr.John.S.Pemberton, Coca-cola was first offered as fountain beverages
by mixing Coca-cola syrup with Carbonated water. Coca-cola was
registered as a trademark in 1895.Coca-cola was being sold in every state
and territory in the united state. In 1899, the co. began Franchised bottling
operations in the United States.
Today, you can find coca-cola in virtually every part of the world and
the coca-cola company has more than 230 beverages to its portfolio.
55
Volumes of the Coca- Cola
It has brown color with very high content of CO2 which makes the Cola
flavor is very strong .It is available in different volumes in the market
likes-
200 ml glass bottle.
300 ml glass bottle.
350 ml express pack.
330 ml can.
600 ml pet bottle.
1.25lt pet bottle.
2.25lt pet bottle.
56
In the Lemon Section
SPRITE
“Clear, crisp, refreshing.”
Introduced in 1960, Sprite is the world’s leading lemon lime flavored
soft drink .sprite is sold in more than 190 countries and ranks as the No.4
soft drink worldwide with a strong appeal to young people. Millions of
people enjoy Sprite because of its crisp, clean taste that really quenches
your thirst .But also has an honest, straightforward attitude about things
that sets it apart from others soft drinks. Sprite encourages you to be true
to who are and to obey your thirst.
57
Volumes of the Sprite
It is color less with packing in green colored bottle. It has content of CO2
.It is available in different volumes in the market likes-
200 ml glass bottle.
300 ml glass bottle.
350 ml express pack.
330 ml can.
600 ml pet bottle.
1.25lt pet bottle.
2. Lt Pet bottle.
LIMCA
“Light and Lemony”This thirst quenching beverages features a fresh, light lemon –lime
taste and fun –loving attitude. It’s a homegrown, national treasure in India,
where the Coca-Cola co. acquired it in 1993 the product’s invigoration taste
58
and cloudy look haven’t changed, but the brand has been revitalized with a
new marketing campaign. Limca continues to build a loyal following among
young adults who love the lighthearted way it compliments the best
moments of their lives. It’s also become a hit in many Persian Gulf
countries. Grab a limca and go.
Volumes of the LIMCA
It is light grey color. It has content of CO2 that makes its flavor tasty. It is
available in different volumes in the market likes-
200 ml glass bottle.
300 ml glass bottle.
350 ml express pack.
330 ml can.
600 ml pet bottle.
1.25Lt pet bottle.
2Lt pet bottle.
59
Minute maid Nimbu Fresh
The new Minute Maid Nimbu Fresh is a truly refreshing lemon juice-based
drink with no added preservative or added color. The latest offering is a
lemon juice-based drink from the Coca-Cola Company's (TCCC) stable
developed especially for consumers in India. Minute Maid Nimbu Fresh is
made out of great quality fresh lemon juice concentrate, providing
consumers with a great refreshing experience - just like natural, home-
made ‘nimbu pani'.
Volumes of the Minute Maid Nimbu Fresh
It is actually a Minute maid nimbu fresh , which is very easy to prepare by
mixing water in it and its packing in the market are :
400 ml pet bottle
1200 ml pet bottle.
In the Orange section:
FANTA
60
The coca-cola company acquired a favorite in Europe since the 1940
Fanta in 1960. Fanta orange is the core flavor , representing about 70% of
sales, but other citrus and fruit flavors have their own solid fan base.
Consumers around the world, particularly teens, fondly associate FANTA
with happiness and special times with friends and family. This positive
imagery is driven by the brand’s fun playful personality, which goes hand in
hand with the bright color, bold fruit taste, and tingly carbonation. Fanta
sells best in Brazil,Germany,Spain ,Japan, Italy and Argentina. Fanta
distribution was increased in the U.S. in 2001 with the return of four flavors:
Orange, Strawberry, Pineapple, and Grape.
Orange, the biggest seller, is now available in most of the country.
Volumes of the Fanta
It comes many flavors like orange. It has content of CO2 that makes
its flavor tasty. It is available in different volumes in the market likes
200 ml glass bottle.
300 ml glass bottle.
350 ml express pack.
330 ml can.
600 ml pet bottle.
1.25Lt pet bottle.
2 Lt pet bottle
61
In the Juice section:
MAAZA
“Yaari Dosti Taaza Maaza”
It is a real fruit taste Kids love ,plus added calcium Maaza tagline
“Yaari Dosti Taaza Maaza” means “Friendship moments with fresh
Maaza” in hindi . Maaza was introduced in India in 1984 as a no
carbonated mango fruit drink .It was acquired by the Coca-cola Co. in 1993
and is currently available in three flavors, mango, pineapple And orange
plus added calcium.
Volumes of the Maaza
It is of yellow color with decent taste of mango .It doesn’t contain
CO2 .It is available in different volumes in the market likes
200 ml Tetra pack. 250 glass Bottle. 250 express pack 600 ml pet bottle. 1.2Lt pet bottle.
62
MINUTE MAID
PULPY ORANGE
Minute maid pulpy orange , which is haired by the coca-cola company and
now its manufacturing in under coca-cola company with the better taste of
Orange’s.
Volumes of the Minute made pulpy orange
It is actually a Minute made pulpy orange , which is very easy to prepare
by mixing water in it and its packing in the market are :
400 ml pet bottle
1200 ml pet bottle.
63
In the Soda Water and Bottled Mineral Water section:
KINLEY CLUB SODA
This is thirst –Quenching beverage features fresh the fresh water with
the saturated oxygen level. This is thirst – quenching beverages features
a fresh and light oranges taste and a lighthearted attitude.
Volumes of the Clube Soda
It is color less and available in market :
300 ml glass bottle.
500 ml pet bottle.
64
KINLEY MINERAL WATER
This is thirst –Quenching beverage features fresh the fresh water with the
saturated oxygen level.
Volumes of the Kinley mineral water
K- Water is a mineral water available in following volumes in the market:
500 ml pet bottle
1 Lt ,pet bottle
2 Lt ,pet bottle
65
KINLEY Mineral Water
PACKAGING DETAILS
66
1.2 LTR
1 .25LTR
600ML
2 LTR
250ML
350 ML
200ML
300ML
330ML
PACK
SODA
LIMCA
SPRITE
FANTA
THUMSUP
COKEMAAZA
YES
NO
YES
NO
YES
NO
NO
NO
NO
NO
YES
YES
YES
NO
YES
YES
YES
YES
YES
NO
YES
YES
YES
YES
YES
YES
YES
YES
NO
NO
NO
YES
NO
YES
NO
YES
NO
YES
YESYESYESYESYES
NOYESYESYESYES
NONONONONO
NO
NO
YES
YES
YES
YES
YES
YES
YES
YES
PRICE DETAILS
Pack Retail Price Price for retailer
300 ML 12/- 264
200 ML 8/- 170
250 ML 12/- 264
350 ML 17/- 3782 Lt Pet 60/- 505
1.2 Lt 50/- 560
1.25 Lt 38/- 378
67
1.2 LTR
1 .25 LTR
600mL
2 LITRES
250ML
200ML
300ML
PACK NO.OF BOTTLES IN A CASE
12
12
24
9
24
24
24
EXPLANATION OF MANUFACTURING PROCESS
The manufacturing of the products of Coca-Cola involves the following
steps:
1. Water passes through the water treatment plant, further passing through
the sand filter and the activated carbon filter, so as to attain pure cleansed
water.
2. In the syrup room, the concentrate is blended with the sugar syrup
3 .Once both the water and the final syrup are ready, they are both mixed
together and sent to the carbonator section where Carbon Dioxide is added
to the mixture to form the final product.
4. On the other hand, simultaneously, the returnable glass bottles are
depalletized, inspected and washed for the purpose of filling in the final
product in it. This step does not take place in the PET bottle line as the
bottles once used are disposed.
5. The product is finally filled in the bottles, crowned (in case of RGB)/
capped (in case of PET bottles), labeled and cased in order to be sent into
the warehouse for distribution.
68
CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION
QUALITY ASSURANCE(QA)
QA department ensure the total quality in each and every aspect of
the organization .This quality is not only concerned with individual
department like production of goods but it is concerned with every
functioning of the organization such as hygiene in the organization like
providing the nutrias food from the canteen , cleanliness in the
bathrooms ,not polluting the environment etc.
69
MANUFACTURING PLANT
BADDI (HP)
SALES AND DEPOT WARE HOUSE
DISTRIBUTION
OUT LETS
One of the major function of QA department is pre and post
manufacturing tests which ensures zero defect so that consumers can get
right quantity and quality of products .All the procured materials have to
undergo a rigorous quality check. Even before procurement the quality of
the material has been ensured by the sample check of material.
Objectives :
Total cost-: The first and foremost objectives is to bring down
overall cost. The costs involved in Logistics Operations-
a) Transportation of supplies to the plant and distribution of finished
goods through distribution system.
b) Processing customers orders.
c) Packaging.
d) Providing customers services.
e) Maintaining warehouse .
These functions are directly not responsible for sales . But they do
support the sales activites . So the total cost approach refers to
evaluation of all logistics expanded for any given sales revenue .By
using the cost approach the manager would try to maintain total logistics
cost as compared to the historical performance of the firm and in
comparison with other firms of the same industry
Sub – Optimization -: It is a term applied to a situation in which one
department objective or function is optimized without considering the
affect of action on others departments . The goal of logistics is to
70
manage the system to provide designated levels of manufacturing
supply at the least possible cost.
Cost Trade –Off -: This occur when a change in destination system
causes some costs to increase and other cost to decrease.
Customers Service -: Elements of customers service are :
a) On time delivery.
b) Proper handling of merchandise.
c) Quantity assembled should be according invoice.
d) On time service which includes after sales service, etc.
DISTRIBUTION NETWORK
HCCBPL has a wide and well-managed network of salesmen appointed for
taking up the responsibility of distribution of products to diverse parts of the
cities. The distribution channels are constructed in such a way that the
demand of customers is fulfilled at the right place and the right time when
they need it.
A typical distribution chain at HCCBPL would be:
Production --- Plant Warehouse --- Depot Warehouse --- Distribution
Warehouse --- Retail Stock --- Retail Shelf --- Consumer
71
The customers of the Company are divided into different categories and
different routes, and every salesman is assigned to one particular route, which is to
be followed by him on a daily basis. A detailed and well-organized distribution
system contributes to the efficiency of the salesmen. It also leads to low costs,
higher sales and higher efficiency thereby leading to higher profits to the firm.
72
TRANSPORTATION LOGISTICS
The distribution function has to perform two functions: it has to
generates demand for the product and secondly ,it has to make sure that
demand thus created is matched by adequate and time supply .While all
the members of the channel will have to take part in dual function , the
transporter has primary responsibility .A logistics plan can be drawn by
considering the following points:
What are the alternatives modes of transport , viz .,road, rail, air, etc.
Available for transporting the goods from the point of manufacture to
the point of purchase ?
What is the mode which is optimal from the standpoint of total
distribution cost?
Is there any need for warehousing arrangements .keeping in view the
products and marketing characteristics.
In fact the first two are important enough to be considered even at the
time of selection of markets . The non- availability of required transportation
facility can out weigh all other marketing advantages that a company may
have . The perishable nature of products demands that must reach the
consumers within the shortest possible time.
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Therefore, unless the potential markets are served ,delivery of such
time items cannot be undertaken.
To consider the second aspect , namely selection of the appropriate
mode of transport ,it is necessary first to identify the elements that taken
together constitute the total distribution costs. In a study carried out in the
US it is found that the total distribution costs are allocated over the various
components in the following proportion:
Administration 11.0%
Transportation 29.4%
Receiving and Shipping 7.8%
Packaging 11.9%
Warehouse 17.04%
Inventory carrying costs 17.04%
Order processing 5.5%
The proportion obviously will vary from product to product ,but all the
cost components, with sole exception of warehousing ,will have to be
considered for determining the total distribution costs of each and every
product.It is ,therefore obvious that the selection of the mode cannot be
taken only on the basis of the freight element, which at best will be only an
74
important segment of total distribution costs .But the decision will depend
on the total incidence of costs for alternative modes of transport. In general
the criteria that should be taken in mind deciding on the proper modes of
transport are cost speed frequency ,reliability , safety and appropriates with
regards to the product.
FACTORS AFFECTING CHANNEL DECISION:
Unit value – In general , direct sales preferred for items of high unit Value and wholesaler are approached for items of low value.
Bulk and Weight _: If bulk transportation is possible , direct exporting is preferred.
Technical nature-: Technologically complex and specialized products are usually sold direct.
Perish ablity_: The more perishable the product the shorter should be the channel leasing is usually adopted for technological perishable products.
Standardizations-: Indirect channels are possible for standardized products.
Stage of market development-_ New products are promoted by
Direct sales. In direct channels may be adapted for established products.
75
LOGISTICS IN COCA-COLA
The company HCCBPL PVT LTD. Najibabad, does its business in full fledge between March and June in western U.P. Approx 60% of the business of the year is done in these 4 months of period.
The company 80% of business depends on Returnable Glass Bottles company always try to receive same amount of empty bottles as it has been dispatched to distributers because if the organization will not do so then its production will hamper and that ultimately effect the sale.
Company always sends two-way vehicles instead of one-way vehicles .The concept of two-way is that vehicle will distribute the full bottles and return by taking empty bottles from them.
The one-way vehicles cost much higher than two-way vehicles are also returned to enable further production
This is beneficial for both company and distributor because company gives glass bottles and crates on loan to distributors and their money is receiving the bottles in the plant.
The company pays freight according to distance and load. It has a policy of paying freight according to load slabs & destination.
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Part: II
77
Chapter-4: New Product Development in Coca-Cola :
INTRODUCTION ABOUT NEW PRODUCT DEVELOPMENT
Product development is the process of designing, creating, and
marketing an idea or product. The product can either be one that is new to
the marketplace or one that is new to your particular company, or, an
existing product that has been improved. In many instances a product will
be labeled new and improved when substantial changes have been made.
The Product Development Process
All product development goes through a similar planning process.
Although the process is a continuous one, it is crucial that companies stand
back after each step and evaluate whether the new product is worth the
investment to continue. That evaluation should be based on a specific set
of objective criteria, not someone's gut feeling. Even if the product is
wonderful, if no one buys it the company will not make a profit.
Brainstorming and developing a concept is the first step in product
development. Once an idea is generated, it is important to determine
whether there is a market for the product, what the target market is, and
78
whether the idea will be profitable, as well as whether it is feasible from an
engineering and financial standpoint. Once the product is determined to be
feasible, the idea or concept is tested on a small sample of customers
within the target market.
New Product Development Process :
• Idea Generation and Screening• Concept Development and Testing• Marketing Strategy• Business Analysis• Product Development• Test Marketing • Commercialization
Step 1. Idea Generation
Simply having an “idea” is worthless--you need to have proof of when you
came up with the idea for your invention. Write down everything you can
think of that relates to your invention, from what it is and how it works to
how you’ll make and market it. This is the first step to patenting your idea
and keeping it from being stolen. You’ve probably heard about the “poor
man’s patent”--writing your idea down and mailing it to yourself in a sealed
envelope so you have dated proof of your invention’s conception. This is
unreliable and unlikely to hold up in court. Write your idea down in an
inventor’s journal and have it signed by a witness. This journal will become
79
your bible throughout the patent process. An inventor's journal can by any
bound notebook whose pages are numbered consecutively and can't be
removed or reinserted. You can find specially designed inventor's journals
at bookstores (try Nolo Press or the Book Factory to start), or you can save
money and purchase a generic notebook anywhere they're sold, such as
the grocery store, office supply store, stationary store, etc
Systematic Search for New Product Ideas Internal sources Customers Competitors Distributors Suppliers
Step 2. Idea Screening
Criteria Process to spot good ideas and drop poor ones
– Market Size– Product Price– Development Time & Costs– Manufacturing Costs– Rate of Return
80
Step 3. Concept Development & Testing
1. Develop Product
Ideas into Alternativ
eProduct
Concepts
1. Develop Product
Ideas into Alternativ
eProduct
Concepts2. Concept
Testing - Test theProduct
Concepts with
Groupsof Target
Customers
2. Concept Testing - Test theProduct
Concepts with
Groupsof Target
Customers
3. Choose the
Best One
3. Choose the
Best One
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Step 4. Marketing Strategy Development
Part One - Overall:Target Market
Planned Product Positioning
Sales & Profit Goals Market Share
Part One - Overall:Target Market
Planned Product Positioning
Sales & Profit Goals Market Share
Part Two - Short-Term:Product’s Planned Price
DistributionMarketing Budget
Part Two - Short-Term:Product’s Planned Price
DistributionMarketing Budget
Part Three - Long-Term:Sales & Profit Goals
Marketing Mix Strategy
Part Three - Long-Term:Sales & Profit Goals
Marketing Mix Strategy
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Step 5. Business Analysis-
After management develop the product concept and
marketing strategy , it can evaluate the proposal’s business
attractiveness management needs to prepare sales ,cost and
profit projection to determine whether they satisfy company .As
new information comes in the business analysis will undergo
revision and expansion.
In business analysis doing a estimating total sales and
estimating cost and profits in business.
Business Analysis
- Review of Product Sales, Costs,
-and Profits Projections to See if
-They Meet Company Objectives
Step 6. Product Development-
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The next stage of new product development is product
development. The job of translating target customer requirement
into a working prototype is helped dy a set of method known as
Quality Deployment. The methodology takes the list of Desired
cutomers attributes generated by market research and them into
a list of engineering attributes can be use a engineers.
The research and development department will develop
one or more physical versions of the product concept.
Step 7: Market Testing:
After management is satisfied with functional and psychologoical
performance, the product ready to be dressed up with a brand name and
packaging and put into a market test.The new product is introduced into an
authentic setting to learn how large the market is and how consumers and
dealers to handling using and repurchasing the product .
The amount of market testing is influenced by the investment cost
and risk on the one hand ,and the time pressutre and research cost on the
other .High investment –high risk products.
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Step 8- Commercialization-
If the company goes a head with commercialization it will face its
largest cost to date the company will have to contract for manufacture or
build or rent a full scale manufacturing facility
New Product Opportunity
Understanding the customers and the market.
Economic change brigs about economic development increase in the
income in the long run but economic cycles and price changes in the
short run.
Sociological and development changes may appear in such factors as
decreasing family size.The trend affects the preference for products and
services.
Technological changes make changes in the product features and
innovation.
Political legal change brings about new trade agreement and government
contract.
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New product development system
An effective product strategy links product decisions with cash
flow,market dynamics ,product life-cycle and organization capabilities .A
company must have cash for product development understand the changes
taking place in the market and have the necessary talent and resource for
product development.
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Product development stages
Ideas for many sources
↓
Does the firm have ability to carry out the idea
↓
Customer requirement to win orders.
↓
Fuctional Specification.
↓
Product Specification
↓
Design Review
Are these product Spections the best
Way to meet customer expectation?
↓
Test market does the product meet customer
Expectation?
↓
Introduction
↓
Evaluations
87
Issues for product design
Robust design-: Means that the product is designed so that small variation in production or assembly does not affect the product.
Modular design-: Product design in easily segmented components are known as modular design .Modular design offer flexibility to production and marketing as it makes change easier.
Computer aided design-: Is the use of computer to interactively design product and prepare engineering documentation ,CAD software allows designers to save time and money y shortening development cycles for all product.
Computer aided manufacturing-: Refers to the use of
Specialized computer programs to direct and control manufactering
equipment.
NEW PRODUCT OF COCA COLACoca-Cola India refreshes millions of consumers throughout the
country .The company launch the new product in 350 ML express pack
and 1.25 Lt I Fridge Pack in, Coca-Cola, Thums Up, Fanta, Limca, Sprite,
Maaza, and also introduced Minute Maid Pulpy Orange, and Minute Maid
Nimbu Fresh in duration of 2008-2010. The company has invested more
than US$ 1 billion in its Indian operations, emerging as one of the country's
top international investors. In-addition the company’s business operations
also engage approximately 1,50,000 people in India.
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Coke to launch 350 ml packs for people on-the-move
Place: New Delhi
Global beverages firm Coca Cola is planning to introduce 350 ml packs of most of its major brands, including Coca Cola, Diet Coke, Thumps Up and Mazaa, in a bid to attract on-the-move consumers ahead of the expected sales drop in the winter.
The company has already introduced the new Xpress 350 ml pack for its Sprite brand and plans to expand it to other products in a phased manner.
"Xpress 350 ml pack to be also made available in Coca-Cola, Diet Coke, Thumps Up, Maaza and Kinley Club Soda in the first phase followed by Fanta, Limca and Minute Maid Pulpy Orange in the second phase,".
"The Sprite Xpress packaging innovation will be the perfect complement to the on-the-move lifestyles of today's youth and it will further strengthen the brands youth connect,"
Launch a product in the following place in india
The latest packaging would be available in select markets including Delhi and NCR, Bangalore, Mumbai, Pune, Goa, Jaipur, Ahmedabad, Jodhpur and Udaipur.
The company will also launch a special campaign titled 'Seedhi Baat, No Bakwaas' to promote its latest format.
The integrated campaign would focus on out-of-home media through location-specific creatives in spots like shopping malls, parking areas and hang-out zones.
89
Launching Date: 2008-09-29
Coke in 350 ML
THUMPS UP 350 ML
Thums up is the leading carbonated soft drink and trusted brand It is
known for it’s strong fizzy taste and it,s confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the men from the
boys.
Price
Availability:
Model:MRP
Manufacturer:
Average Rating:
Rs. 17
In stock
18.00
COKE
Not rated.
Price
Availability:
Model:MRP
Manufacturer:
Average Rating:
Rs. 17
In stock
18.00
Thumps Up
Not rated.
90
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SPRITE 350 ML
Sprite Xpress pack - a 350 ml on-the-go packaging innovation, priced at
Rs.15
Launched last year builds a stronger connect with the youth, who are
always on
The lookout of opportunities to move up the ladder. They prefer Sprite
simply
because of its unmatched thirst quenching ability and stating facts as they
are –
Seedhi Baat ,No Bakwaas, Clear Hai?!
Coke to launch 1.25 Ltr Fridge pack
Coca-Cola India’s innovative 1.25 liter Fridge Pack. The innovation, backed
by extensive research has been specially designed for Indian consumers. It
is aptly called the “Fridge Pack” as it easily fits into any average size
refrigerator owned by most families. To further strengthen consumer
connect especially within the in-home segment, Coca-Cola India has
extended its latest packaging innovation across its entire sparkling
beverage portfolio i.e. Coca-Cola, Thums Up, Sprite, Fanta, Limca.
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First launched in select markets of Delhi, Mumbai, Nasik and states like
Gujarat and Orissa, the Fridge Pack has been a runaway success within 2
months of its launch in end March ‘08. Now as part of the 5 million
milestone celebration, Coca-Cola India today announced plans to
NATIONALLY roll out the 1.25 liter Fridge Pack across all markets.
According to Venkatesh Kini, Vice-President, Marketing, Coca-Cola India,
“Innovation has always been the hallmark of Coca-Cola’s business strategy
in India. With the trend of in-home consumption of ready to drink packaged
beverages on the rise, the success of the innovative 1.25 liter fridge pack is
exciting. It is heartening to see the packaging innovation cross the 5 million
milestone within 2 months of its launch in select markets. The challenge
now is to extend the benefits offered by the fridge pack to maximum
number of consumers. We are now in the process of rolling out this latest
innovation in a phased manner nationally, across our entire portfolio of
sparkling beverage brands.”
Advantages:
The Fridge Pack, comes loaded with numerous advantages for
consumers- be it the convenience to store in an average size refrigerator,
provide an ideal serving for one occasion consumption for 4-5 people. In-
93
addition, the packaging innovation also provides for better fizz retention
and at Rs 35 offers real value for money. The company has been launch
the fridge pack in Coca –Cola ,Thums up , Sprite,Fanta , Limca.
India’s largest selling Soft Drink brand in the clear lime segment, orange
segment,cola section. is all set to unveil its latest communication - Fridge
Mein Jayega Bade Kaam Ayega on
In.Com for the FIRST timeon August, 8, 2009.
New Delhi: Coca-Cola in India announced on Saturday the launch of the
latest communication initiative for Sprite – India’s largest selling Soft Drink
brand in the clear lime segment. The initiative Fridge Mein Jayega Bade
Kaam Ayega (fits in your Fridge, comes in handy in everyday life) for the
innovative 1.25 liter Fridge Pack has been designed to strengthen Sprite’s
consumer connect in the segment of in-home consumption. The 1.25 liter
Fridge Pack - a packaging innovation - comes loaded with numerous
Sprite Thums
94
advantages for consumers- be it the convenience to store in an average
size refrigerator or providing an ideal serving for one occasion consumption
for 4-5 people.
According to Mr. Srinivas Murthy – General Manager, Marketing
(Flavors) at Coca-Cola India, “Packaging innovation has always added a
new dimension to the whole experience of having a soft drink, making it
far more convenient for consumption and also offering better value for
money. With the trend of in-home consumption of ready to drink
packaged beverages on the rise, the convenient 1.25 liter fridge pack
offers immense benefits to the consumers. The new communication
initiative depicts the convenience of this pack through a creative
rendition that is peculiar to brand Sprite .The strategy includes building a
stronger connect with the youth, who prefer Sprite simply because of its
unmatched thirst quenching ability and its refreshingly honest attitude.
The clutter breaking innovative initiative is designed to bring out the no
nonsense and unpretentious attitude of Sprite.
Leveraging the online platform, Sprite will also launch an exciting consumer
contest on In.Com on August 7, ‘09, a day prior to the Online Premier of the
communication for its innovative 1.25 liter Fridge Pack.
95
Leveraging the Digital platform
Leveraging the online platform, Sprite will also launch an exciting consumer
contest on In.Com, a day prior to the Online Premier of the communication
for its innovative 1.25 liter Fridge Pack. As part of the communication,
Consumers get an opportunity to predict the entire plot of the
communication just by viewing the TVC for the initial 8 seconds. The
consumers are expected to predict the way forward for the protagonist who
uses a Fridge Pack to find a way for his dinner. 6 lucky consumers selected
from a computer generated lucky draw with the correct answers win Nokia
Multimedia Phones.
96
Minute Maid pupply Orange
Minute Maid is a product line of beverages, usually associated with
lorange juice, but now extends to soft drinks of many kinds, including Hi-C.
Minute Maid is sold under Cappy brand . .
Minute Maid was the first company to market orange juice concentrate,
allowing it to be distributed throughout the United States and served year-
round. The Minute Maid company is now owned by The Coca-Cola
Company, and is the world's largest marketer of fruit juices and drinks. The
firm opened its headquarters in Sugar Land Town Square in Sugar Land,
Texas, United States, on February 16, 2009; previously it was
The Minute Maid company was purchased by Coca-Cola in 1960
97
In 1967, Minute Maid relocated to Houston, Texas, and is joined with
Duncan Foods to form the Coca-Cola Foods division.
In 1970, the company was involved in a scandal in the United States about
bad housing, often referred to as "slave quarters," and working conditions
of Minute Maid farm laborers in Florida. The United Farm Workers stepped
in to support the workers. NBC reported on the issue in a 1970
documentary called Chet Huntley's Migrant: An NBC White Paper In
response to the bad press and a boycott in Florida, the company
established a program that improved the workers' situation
In 1973, the company released its first ready-to-drink, chilled orange juice
product in the United States, entering an "orange juice war" with Tropicana
In 1996, the name was changed from Minute Maid Corp. to The Minute
Maid Company.
The Coca-Cola Company sold its Minute Maid orange groves in Florida in
1997. The United Farm Workers again took the side of the orange growers
during this time
In 2001, the Minute Maid division of Coca-Cola launched the Simply
Orange brand.
98
In 2002, Minute Maid bought the naming rights to re-brand the Houston
Astros ballpark from Enron Field to Minute Maid Park
In 2003, Minute Maid's division fully merges with Coca-Cola North America
It is actually a Minute made pulpy orange , which is very easy to prepare by
mixing water in it and its packing in the market are :
400 ml pet bottle
1200 ml pet bottle.
Minute Maid Nimbu Fresh
Riding on the success of Minute Maid Pulpy Orange, Coca-Cola in India
today announced the launch of its latest product innovation under the
Minute Maid brand umbrella. The new Minute Maid Nimbu Fresh is a truly
refreshing lemon juice-based drink with no added preservative or added
color. The latest offering is a lemon juice-based drink from the Coca-Cola
Company's (TCCC) stable developed especially for consumers in India.
Minute Maid Nimbu Fresh is made out of great quality fresh lemon juice
concentrate, providing consumers with a great refreshing experience - just
like natural, home-made ‘nimbu pani'.
"Innovation has always been the hallmark of Coca-Cola's business strategy
99
in India. The launch of Minute Maid Nimbu Fresh is the latest example. Part
of a phased launch, the latest product innovation would be first made
available to consumers across the state of Tamil Nadu. As part of the same
process, over the next two months, Minute Maid Nimbu Fresh would be
retailed across 35,000 outlets in the state followed by a nation-wide launch
later this year", said T. Krishnakumar, CEO, Hindustan Coca-Cola
Beverages Pvt. Ltd at the press conference in Chennai ..
The latest innovation by Coca-Cola in India is targeted at consumers
across all age groups who are on the lookout for a naturally refreshing juice
drink. The innovative consumer proposition of Minute Maid Nimbu Fresh
especially formulated to offer a refreshing experience is best explained by
the brand's tagline – ‘Bilkul Ghar Jaisa' (just like home).
"We at Coca-Cola India are constantly trying to find new ways to delight
and refresh our consumers. It gives me immense pleasure to announce the
launch of Minute Maid Nimbu Fresh, a refreshing lemon juice-based drink
developed especially for Indian consumers said Ricardo Fort, Vice
President, Marketing, Coca-Cola India at the launch. "The roll out of the
latest innovation has been designed to further extend the company's
market leadership in the juice drink segment."
100
Minute Maid Nimbu Fresh is being made available in two pack sizes - on-
the-go 400 ml PET and 1 liter PET all affordably priced at Rs 15 and Rs 40
respectively. Coca-Cola in India currently enjoys market leadership in the
juice drink segment with brand Maaza (no.1 mango juice drink in the
country) and Minute Maid Pulpy Orange (no.1 orange juice drink in the
country). With the launch of Minute Maid Nimbu Fresh, Coca-Cola in India
is all set to further extend its leadership in this fast growing segment.
R E D(RIGHT EXECUTION DAILY)
101
RED works on two categories
1) Type of outlets
2) Volume of Outlet
1. Type of Outlet (Channel)
(A) GROCERY STORE
Grocery (customer profile): Store stocking a variety of regular uses
household items. The channels provide an opportunity for penetration as it
propels home consumption.
It includes all karyana stores, departmental stores, supermarkets,
provision stores etc.
Necessary Availability - 2 liter and 300ml
(B) EATING & DRINKING CHANNEL
Eating and Drinking Channel: Outlets range from the high-end restaurants
to the smaller dhabas. These outlets offer multiple
Opportunity to effect sales as people usually order something to drink along
with food. It includes
- Restaurants
- Bars and Pubs
102
- Dhabas
(C) CONVIENCE CHANNEL
Pan/bidi shops (customer profile): This segment includes PAN BIDDI
outlets that stock cigarettes, mint, and confectionary. It covers STD/ISD
phone booths, travel channel etc. Small outlets that mainly sell 200ml or
300ml bottles. They may also sell 600ml.
2. VOLUME OF OUTLETS
Diamond : > 800 cs Gold : 500-799 cs
Silver : 200-499 cs Bronze : < 200 cs
103
Market Segmentation models
CHANNELCLUSTER
Based on consumption
occasion
104
Visi-cooler presence & condition
Under RED market developer has to ensure that shopkeeper must display
all products. Display may be in the form of Shelf Display, Table Top Display
etc. All products must be displayed in brand order COLOJK i.e. Coke,
Thums up, Limca, Sprite, Fanta, Maaza, Minute Maid Pulpy Orange, Kinley
(mineral water & Soda water).
105
Activation Elements
Market developer must ensure that all these activation elements must
available at all the outlets. Detail of activation elements must available at
GROCERY STORES:
1. WARM DISPLAY RACK
2. SHELF DISPLAY
OPTIONAL ELEMENTS:-
1. STANDEE
2. FLANGE
3. SIX MOBILE HANGER
4. VISI COOLER BRAND STRIP
ACTIVATION ELEMENTS FOR E&D:-
1. COMBO STANDEE
2. FLANGE OR STANDEE OR GSB
3. BRANDED TABLE MAT
4. MENU BOARD OR MENU CARD
OPTIONAL ELEMENTS:-
1. WARM DISPLAY RACK
2. TABLE TOP RACK
3. TENT CARD
ACTIVATION ELEMENTS FOR CONVENIENCE:-
1. WARM DISPLAY RACK OR 1 TIER RACK
2. FLANGE OR STANDEE
3. AERIAL MOBILE HANGER
106
OPTIONAL ELEMENTS:-
1. TABLE TOP DISPLAYRED SCORING SHEET 2009, ALL CHANNELS ALI VPO CLASS
Q No E&D Type 1 E&D Type 2 Grocery Convenience
D G S D G S D G S D G S
VIS
ICO
OL
ER
1. Is a Coca Cola Visicooler present (if answer is no skip question 2-8)
2. Is the Visicooler/Chest as per standerd?
6 6 6 6 6 6 6 6 6 6 6 6
3. Stills Cooler (in diamond outlets only)
1 1 1 1
4. Is the Visicooler in the Prime position?
5 5 5 5 5 5 5 5 5 5 5 5
5. Is the Visicooler into working condition?
1 2 2 1 2 2 1 2 2 1 2 2
6. Is the Visicooler in the light working?
1 1 1 1 1 1 1 1 1 1 1 1
7. Is the Visicooler 100% pure? 10 10 10 10 10 10 10 10 10 10 10 10
8. Is the Visicooler shelf order compliant ?
6 6 6 6 6 6 6 6 6 6 6 6
Subtotal 30 30 30 30 30 30 30 30 30 30 30 30
AV
AIL
AB
ILIT
Y
9. Sparking soft drink (SSD) including soda 200 or 300 ml (Diamond/Gold Cola +3) Silver (Cola +2)
20 20 22 36 36 40 6 6 16 20 20 22
10. Sparking soft drink (SSD) including soda Mobile pet 500/600 Ml Dimond (Cola + 3) Gold (Cola +2) Silver (Cola +1) Xpress 350 Ml Diamond/Gold(Sprite +2) Silver(Silver+1)
16 16 16 12 12 12 16 16 16
11. Any Juice RGB (200/250 ML any Juice Tetra)
6 6 6 9 9 10 3 3 6 6 6 6
12. Mobile Juice (Diamond/Gold 2 flavour) Silver (1 flavour)
6 6 6 6 6 6 6 6 6
13. Juice large Pet (Diamond/Gold 2 flavours)
6 6
14. Large Pet 1.25 Ltr/1.5 Ltr/2 Ltr/2.25 Ltr including soda (Diamond (Cola +3) Gold (Cola +2) Silver (Cola +1)
15 15 10
15. Water (either 500 ml or 1 ltr) 2 2 5 5 2 2 2 2
Sub Total 50 50 50 50 50 50 50 50 50 50 50 50
AC
TIV
AT
ION
E & D
16. Branded Menu cards with KO beverages menu(at least 5 menu cards) Menu board (at least 1) Combo element
10 10 10 10 10 10 10
17. Flange/Road Standee/Flex/Glow sign board (at least 1 of the four)
3 3 3 3 3 3
2. VISICOOLER BRAND STRIP
107
RED SCORE TRACKING
The performance of market developer is measured on the basis of score
tracking.
Tracking will be done of the following Parameters:
1. Visi-cooler 30 points
2. Availability 50 points
3. Activation Elements 20 points
4. Bonus 05 points
GRAND TOTAL 105 points
These 105 points are distributed in various Parameters explained in the
following table:
108
AC
TIV
AT
ION
Grocery
18. Three tier rack pure & charged
8 8 8
19. Shelf display (other than rack)
5 5 5
Convenience
20. Table too display unit/hanging rack/aerial hanger
5 5 5
21. Shelf Display (other than rack)
5 5 5
22. Flange/Road Standee/Flex/Glow Sign Board(at least 1 of the 4)
3 3 3
All Channels
23. OBM/Dnnking Shot communication
3 3 3 3 3 3 3 3 3 3 3 3
24. Are prices of Coca Cola products communicated in a clear and visible manner?
4 4 4 4 4 4 4 4 4 4 4 4
Sub Total 20 20 20 20 20 20 20 20 20 20 20 20
Total 100 100 100 100 100 100 100 100 100 100 100 100Bonus Points
BO
NU
S
25. Large Pet/Fridge pack bonus/Diamond (Cola +3) Gold (Cola +2) Silver (Cola +1)
5 5 5
26. Mobile Express pack bonus mobile diamond (cola +3) gold (cola +2) Silver (cola +1) Express (diamond/gold/silver +2 sprite +1)
5 5 5 5 5 5 5 5 5
Grand Total 105 105 105 105 105 105 105 105 105 105 105 105
RED SCORING SHEET
109
OBJECTIVES OF RED
1. The main objective of this RED project is to increase the sales of
the company.
2. The next objective of this projects is to advertise the various
Products of the company.
3. The main objective of RED is to look out the retail outlets for the displays
of company products.
4. To study the channel analysis of Coca Cola through retail outlets in
Kotdwar.
5. To study the effectiveness of advertising products in the retail outlets and
their correction to visualize through consumer.
Someone has rightly said that
1. JO DIKHTA VO BIKTA HAI
2. JITNA DIKHTA HAI UTNA BIKTA HAI
3. JAISA DIKHTA HAI VAISA BIKTA HAI
110
Part III
111
Chapter-5: Findings And Analysis
SWOT ANALYSIS
STRENGTH:-
Coca-cola Potential brand position in the market.
Good quality and innovation of product for long term customers
relations ship.
Good advertising campaign, and brand ambassador.
Advertisement campaign more effective and change punch line
make. Emotional touch with customers and retail.
High investment in research and development.
Coca-cola has a good market share.
Segment of coke product to every age group.
To satisfy of retail or through schemes SGA, display.
WEAKNESS:
Lack of proper distribution in many areas.
Lack availability 1 it and 1.5 it product pack.
Lack supply of Kinley water in the market.
Rising No. of date dealers that will wrong effect in market
condition.
Retailers are not getting schemes at the time.
No distribute enough signage to retailers.
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Opportunity:
Coke is able to capture large market share.
More monopoly countries of coke brand.
To improve market mix (Product, price, promotion, place)
To increase the sale of Kinley water.
Threats:
Pepsi is the major competitors, that means watch myopia in the
market every time.
Pepsi have captured major market of 500ML, 1.5 and 2LT
Retailers divert to Pepsi because they are getting good schemes and SGA
signage. Increase local brand in the market.
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Chapter-6: Field Experience
The success of any survey depends upon the quality and integrity of
the survey or who collect the basic data by expressing the subject under
the study and on the respondent who provides the data required by filling
up the questionnaire. The accuracy of the data collected solely depends
upon the cooperation and truthfulness of the person who is being
interviewed.
Keeping this in mind i have tried my best to collect the reliable data.
During this process .I came across a variety of experiences some
interesting and some bitter ones.
After knowing the utility of the survey some of the respondent filled up
this questionnaire sincerely whereas some of the other was not interested
in it. How ever most of respond were friendly and cooperative and willingly
filled up the
Questionnaire with utmost sincerity and to est. of their knowledge.
Barring few exceptions I had a pleasant time with respondent .I hope that the
Respondent did not feel the interview insipid and boring.
I got the opportunity to interact with different people of different areas
in The Hindustan coca-cola beverages Pvt. Ltd. Najibabad ,Distt. Bijnor and
adjoining region like, KOTDWAR.
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RESEARCH METHODOLOGY
Project RED is a live project. It can broadly be classified in two stages,
which can be described as follows.
Initial Stage:-
This stage comprises of Product Knowledge and Process Knowledge.
The product knowledge means the knowledge of every product and
its variants offered by the company-
The Process Knowledge means the knowledge about the distribution
of the product and its variants from the sales depot to the different
retailers of the city.
The actual knowledge about the product and the process was
attained with the help of Route Riding.
Route Riding means to visit different outlets on the commuting
vehicle (vehicle which carries coke product from depot to different outlets)
along with salesman. By the route riding it is very easy to grasp and
understand how the cola market actually works. Route riding elaborated the
factors influencing the cola market and provided the information about the
competitor’s strategies and schemes which they offer to the retailers in
order to gain advantage. Retailer’s grievances were best known with the
help of route riding through personal interaction. Also with route riding any
one can know about the sales status of an outlet on a daily basis.
Later stage:
This stage comprises of the serious implementation of the project
RED in the area of Kotdwar. To ensure effective and fruitful
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implementation of the campaign, market developers (M.D.) were appointed
by the company. Market Developers carried the responsibility to handle all
the activities under the R.E.D. campaign.
The first step involved in this stage was to select the outlets where the
campaign has to be implemented. The outlets are selected on the basis of
some parameters like annual sale of the outlet, type of the outlet, space
available at the outlet etc. Total available market was mainly segmented on
two parameters, which are given below on the next page.
Outlet volume
On basis of outlet volume outlets are divided into e
main types.
(a) Diamond: -
This category includes those outlets whose annual sale is
more than 800 crates.
(b.) Gold :-
This category includes those outlets whose annual
sale is from 500 to 799 crates.
(c.) Silver :-
This category includes those outlets
whose annual sales is from 200 to 499 crates.
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(2.) Channel cluster
On basis of channel cluster outlets are divided into 3 main types.
(a.) Grocery :-
These outlets are primarily engaged in retailing of food and
various household items. It includes grocers (outlets dealing mainly in
grains, provision, spices, edible, oil etc.), and general stores.
(b.) E & D
(Eating and Drinking):- Outlets selling items to eat which are being cooked
within outlet, made at the outlet with possibility of consuming those
products within the outlet. The outlet may have a place to sit. It includes
Bakery, sweets shop, Restaurant, Bars, Juice centers, Ice cream parlor.
(c.) Convenience: - It includes outlets which are small stores or
shops, generally accessible locally. These are often located alongside of
busy roads. It includes Chemists, STD booths, Pan Shops etc.
After the identification of the outlet on the pre specified norms, the total
area of Kotdwar market was fragmented and each fragmented sub market
was to be looked after by the market developers appointed by the
company. Each M.D. had his permanent journey plan
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MY ROLE IN PROJECT “RED”
IMPLEMENTATION – First and foremost task for me was to implement the
project in the given area with the support of MD’s (MARKET
DEVELOPER). Various norms for different outlets had been fixed but their
implementation was very important. Different areas were assigned to me in
which I implemented RED and these areas are further visited by various
higher.
NAME TOWN VISICOOLER
AVAILABILITY (BRANDS IN No.s)
ACTIVATION
S.NO.NAME OF OUTLETS
AREA
CHANNEL
CAT.
PRIME
LOCATION
PURITY
RGB
600 ML
2 Ltr
RGB MAAZA
JUICE M
OBILE
JUICE PET
RACK
SHELF DISPLAY
TABLE TOP
MOBILE
HANGER
TOTAL
SIGNATURE OF ASM SIGNATURE OF SESIGNATURE OF DGM / SM
SIGNATURE OF ASM SIGNATURE OF SE
SIGNATURE OF MARKET DEVELOPER
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IMPLEMENTATION – First and foremost task for me was to
implement the project in the given area with the support of MD’s (MARKET
DEVELOPER). Various norms for different outlets had been fixed but their
implementation was very important. Different areas were assigned to me in
which I implemented RED and these areas are further visited by various
higher officials of the organization.
I measured the performance of sales team and distributors (under RED) in outlets With respect to all parameters of execution. I have to check the stock, that is available in the shop, then I have to make a report, and send to me team leader, the format of the report is that.
MARKET AUDITING (TRACKING PERFORMANCE) – Tracking
performance of the MD of corresponding area was also my responsibility. I
had to score him on fixed norms (RED SCORING SHEET) and also give
the feedback on his performance.
FINDING LOOPHOLES – Finding loopholes in the system like
absence of co-ordination between MD’s and SALES TEAM and
report to higher officials (Mr. Kamal Sharma) and DGM (SALES).
BRAND CONTACT - I had to interact regularly with shopkeepers to
know their grievances and solve them. If I could solve them then I
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reported them to my company guide, else he suggested me the
alternatives.
AVAILABILTY - I also need to give company Daily availability report
of Kotdwar of various brands.
FINDINGS OF PROJECT1). According to the demand of outlet owners, delivery of products are not
Made available in the outlets.
2). Efficient brands of coca – cola are not available in outlets.
3). Sales people and delivery persons do not visit the outlets on a regular basis.
4). Advertisement materials are not available in the right time at the right place i.e.
Different Channels like Grocery, Convenience, E&D.
5). Many outlet owners have complains on improperly working VISICOOLER i.e. its cooling Capacity is low or its lights are not working.
6). Improper management is seen as No mechanics visit the outlets despite of Complaints issued by outlet owners
7). Visicoolers are not placed at their Prime locations in many outlets
8). Many outlet owners express deep in satisfaction towards coca-cola as they do not get Any Prize or Cash discount as they receive from other companies.
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RECOMMENDATIONS
1. Delivery position should be maintained to get good return from the
market.
2. The company must try to make different brands of Coca-Cola available
at every retail outlet whether it is large or small, otherwise the
consumer may go for substitute.
3. Sales People and delivery persons should properly monitor the market
whether stocks are available and are properly utilized in the market or
not.
4. If Sign boards/Display boards are costly then we can provide them
alternate arrangements like wall paintings and posters.
5. We can provide them beautiful display racks, tablemats, menu-cards
etc, containing the trademark and brand name of the company.
6. Display material should be provided to the retailers on more regular
basis to increase the sales level.
7. Maintenance work of refrigerator must be improved.
8. The company should take steps to replace damaged or un-sellable
Coca-Cola
goods frequently from the retailers.
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9. The Company employees should make direct contact with the
consumers, so that they may aware with real situation of the market and
consumers attitude towards the product. For this they can arrange
awareness camps in different locations.10. At every petrol-pump we
should install Fountain Machine. It will be helpful in generating impulse
purchase and also as awareness about the products of the company
among the consumers.
LIMITATIONS OF THE PROJECT:
1. Out of nearly 650 total coca cola selling outlets were selected by the
company (These selected outlets had a very high volume of sales of coca
cola & its different brands. To maintain all the brands in the required
orientation Brand pack Order was very tough).
2. Many of the retailers were reluctant to keep there Visicoolers pure or
in the prescribed brand pack order without any genuine reason. They were
hesitant even in allowing the company appointed MD’s to pure their v/c’s.
They wanted to keep the products in the way convenient to them.
3. Each retail counter exhibited a different sales scenario. In some
shops the sales of R.G.B. Scaled heights whereas in others pet bottles
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were in high demand. Due to this influencing factor the retailers were
tentative to stock the prescribed product variants.
4. Time constraint-the campaign R.E.D was designed to be implemented
over a period spanning one year. Many aspects of the campaign are still
left unexplored as the project highlights the analysis for the work done for
14 weeks.
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CONCLUSION
RED is a worldwide project of COCA COLA Company. This project is
playing a very important role for the company. With the help of this project,
sale of the company has been increased. Because in this project there is
one market developer who has to ensure that Visicoolers must be on prime
location, all brands must available, all brands must displayed in brand order
i.e. COLOJK. All the activation elements like warm display rack, table top
rack, standees etc must be available at all outlets come under RED. All
these elements help the company in increasing the sales because
1. JO DIKHTA VO BIKTA HAI
2. JITNA DIKHTA HAI UTNA BIKTA HAI
3. JAISA DIKHTA HAI VAISA BIKTA HAI
Definitely when sales increase then profits also increases. With the help of
this project company has increased its sale in Kotdwar region and also
company can measure or check the performance of each franchises
working all over the world with COCA COLA COMPANY.
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BIBLIOGRPHY:
Books:
Marketing Management : Philip Kottler
Marketing Research : Bound, Stash & Others
“Booklet of RED”, COCA COLA INDIA
Websites:
www.coca-cola.com & www.Google.com
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