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HINDUSTAN COCA-COLA BEVERAGES

PRIVATE LIMITED

A SUMMER TRAINING REPORT

VINEET BHAT

UNIV. ROLLNO: 2009MBE47

AS PART OF THE CIRRICULUM OF MASTERS PROGRAM IN

BUSINESS ADMINISTRATION,

SHRI MATA VAISHNO DEVI UNIVERSITY, KAKRIYAL, KATRA

ACKNOWLEDGEMENT

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I would like to thank my project guide Mr. Devender Sachdeva, ASM, Hindustan

Coca-Cola India, without whom an internship with, Hindustan Coca-Cola Beverages

Private Limited (HCCBPL) would not have been possible. I am grateful to him for

having taken time off his busy schedule and spoken to the concerned person to get

me this internship. I express my gratitude to the Hindustan Coca-Cola Beverages

Private Limited (HCCBPL) for having given me an opportunity to work with them and

make the best out of my internship. I thank my trainers, for having trained me and

constantly guided and supported me throughout the training period. My heartfelt

gratitude also goes out to the staff and employees at HCCBPL for having co-

operated with me and guided me throughout the one and a half months of my

internship period. I thank my School of Business Economics, College of

Management, Shri Mata Vaishno Devi University for having given me this

opportunity to put to practice, the theoretical knowledge that I imparted from the

program. I am also thankful to Mr. Sanjay Munshi, GSM, Mr. Sunil Shellay, Capability

Manager, Mr. Sanjay Kotwal, Team Leader and MDs for having guided and

supported me through the course of the internship. I take this opportunity to thank

my parents and friends who have been with me and offered emotional strength and

moral support.

INTRODUCTION

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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. It sells beverage concentrates

and syrups to bottling and canning operators, distributors, fountain retailers and

fountain wholesalers. The Company’s beverage products comprises of bottled and

canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder

products. 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. More than anything,

that system is dedicated to people working long and hard to sell the products

manufactured by the Company. This unique worldwide system has made The Coca-

Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing,

from Montreal to Moscow, Coca-Cola, more than any other consumer product, has

brought pleasure to thirsty consumers around the globe. For more than 115 years,

Coca-Cola has created a special moment of pleasure for hundreds of millions of

people every day.

The Company aims at increasing shareowner value over time. It accomplishes this

by working with its business partners to deliver satisfaction and value to consumers

through a worldwide system of superior brands and services, thus increasing brand

equity on a global basis. They aim at managing their business well with people who

are strongly committed to the Company values and culture and providing an

appropriately controlled environment, to meet business goals and objectives. 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.

A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

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Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods

(CPG) are 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. Apart from this, social

changes such as increase in the number of nuclear families and the growing

number of working couples resulting in increased spending power also contributed

to the increase in the Indian consumers' personal consumption. The realization of

the customer's growing awareness and the need to meet changing requirements

and preferences on account of changing lifestyles required the FMCG producing

companies to formulate customer-centric strategies. These changes had a positive

impact, leading to the rapid growth in the FMCG industry. Increased availability of

retail space, rapid urbanization, and qualified manpower also boosted the growth of

the organized retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service

formats of the FMCG industry by focusing on rural markets, direct distribution,

creating new product, distribution and service formats. The FMCG sector also

received a boost by government led initiatives in the 2003 budget such as the

setting up of excise free zones in various parts of the country that witnessed firms

moving away from outsourcing to manufacturing by investing in the zones.

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.

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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. (Source: HCCBPL, Monthly Circular, March)

The FMCG sector consists of the following categories:

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries,

Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary

products) and Shoe care; the major players being; Hindustan Lever Limited,

Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic detergents),

Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners,

Insecticides and Mosquito repellants, Metal polish and Furniture polish; the

major players being; Hindustan Lever Limited, Nirma and Ricket Colman.

Branded and Packaged foods and beverages- Health beverages, Soft

drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack

foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed

vegetables, Processed meat, Branded flour, Bottled water, Branded rice,

Branded sugar, Juices; the major players being; Hindustan Lever Limited,

Nestle, Coca-Cola, Cadbury, Pepsi and Dabur

Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

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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 better products to

gain more consumers and satisfy the existing consumers.

FIGURE 1: 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.

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If the behavioral patterns of consumers in India are closely noticed, it could be

observed that consumers perceive beverages in two different ways i.e. beverages

are a luxury and that beverages have to be consumed occasionally. These two

perceptions are the biggest challenges faced by the beverage industry. In order to

leverage the beverage industry, it is important to address this issue so as to

encourage regular consumption as well as and to make the industry more

affordable.

Four strong strategic elements to increase consumption of the products of the

beverage industry in India are:

The quality and the consistency of beverages needs to be enhanced so that

consumers are satisfied and they enjoy consuming beverages.

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.

Consumer education is a must to bring out benefits of beverage consumption

whether in terms of health, taste, relaxation, stimulation, refreshment, well-

being or prestige relevant to the category.

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.

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THE COCA-COLA COMPANY

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HISTORY

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year

1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-

legged brass kettle in his backyard. He first “distributed” the product by carrying it

in a jug down the street to Jacob’s Pharmacy and customers bought the drink for

five cents at the soda fountain. Carbonated water was teamed with the new syrup,

whether by accident or otherwise, producing a drink that was proclaimed “delicious

and refreshing”, a theme that continues to echo today wherever Coca-Cola is

enjoyed.

Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name

and penned “Coca-Cola” in the unique flowing script that is famous worldwide even

today. He suggested that “the two Cs would look well in advertising.” The first

newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty

citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth

signs reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink”

added to inform passersby that the new beverage was for soda fountain

refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year,

Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has

been a distinctive color associated with the soft drink ever since. For his efforts, Dr.

Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never

realized the potential of the beverage he created. He gradually sold portions of his

business to various partners and, just prior to his death in 1888, sold his remaining

interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year

1891, Mr. Candler proceeded to buy additional rights and acquire complete

ownership and control of the Coca-Cola business. Within four years, his

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merchandising flair had helped expand consumption of Coca-Cola to every state

and territory after which he liquidated his pharmaceutical business and focused his

full attention on the soft drink. With his brother, John S. Candler, John Pemberton’s

former partner Frank Robinson and two other associates, Mr. Candler formed a

Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,”

used in the marketplace since 1886, was registered in the United States Patent

Office on January 31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant

outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago,

Illinois, and Los Angeles, California, the following year. In 1895, three years after

The Coca-Cola Company’s incorporation, Mr. Candler announced in his annual report

to share owners that “Coca-Cola is now drunk in every state and territory in the

United States.”

As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A

new building erected in 1898 was the first headquarters building devoted

exclusively to the production of syrup and the management of the business. In the

year 1919, the Coca-Cola Company was sold to a group of investors for $25 million.

Robert W. Woodruff became the President of the Company in the year 1923 and his

more than sixty years of leadership took the business to unsurpassed heights of

commercial success, making Coca-Cola one of the most recognized and valued

brands around the world.

HISTORY OF BOTTLING

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a

glass. Early growth was impressive, but it was only when a strong bottling system

developed that Coca-Cola became the world-famous brand it is today.

YEAR WISE HISTORY OF BOTTLING:

Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage

called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began

bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson.

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Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler

thanked him but took no action. One of his nephews already had urged that Coca-

Cola be bottled, but Candler focused on fountain sales.

Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a

business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas

and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most

of the United States for a sum of one dollar. A third Chattanooga lawyer, John T.

Lupton, soon joined their venture.

Years 1900-1909: Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling

rights to local entrepreneurs. Their efforts were boosted by major progress in

bottling technology, which improved efficiency and product quality. By 1909, nearly

400 Coca-Cola bottling plants were operating, most of them family-owned

businesses. Some were open only during hot-weather months when demand was

high.

Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with

imitators. A group representing the Company and bottlers asked glass

manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass

Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle

became one of the few packages ever granted trademark status by the U.S. Patent

Office. Today, it is one of the most recognized icons in the world.

In the 1920s: Bottling overtakes fountain sales

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the

U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit

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starting in 1923. A few years later, open-top metal coolers became the forerunners

of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola

exceeded fountain sales.

In the 1920s and 1930s: International expansion

Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the

Company began a major push to establish bottling operations outside the U.S.

Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and

South Africa. By the time World War II began, Coca-Cola was being bottled in 44

countries.

In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the world to supply the

troops. This followed an urgent request for bottling equipment and materials from

General Eisenhower's base in North Africa. Many of these war-time plants were later

converted to civilian use, permanently enlarging the bottling system and

accelerating the growth of the Company's worldwide business.

In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type-the

traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26

ounce versions. Cans were also introduced, becoming generally available in 1960.

In the 1960s: Introduction of new brands

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and

Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke,

followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are

offered to meet consumer preferences in local markets around the world.

In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of The Coca-

Cola Company merged and evolved into international mega chains. Such customers

required a new approach. In response, many small and medium-size bottlers

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consolidated to better serve giant international customers. The Company

encouraged and invested in a number of bottler consolidations to assure that its

largest bottling partners would have capacity to lead the system in working with

global retailers.

In the 1990s: New and growing markets

Political and economic changes opened vast markets that were closed or

underdeveloped for decades. After the fall of the Berlin Wall, the Company invested

heavily to build plants in Eastern Europe. As the century closed, more than $1.5

billion was committed to new bottling facilities in Africa.

21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local

communities. This heritage serves the Company well today as consumers seek

brands that honor local identity and the distinctiveness of local markets. As was

true a century ago, strong locally based relationships between Coca-Cola bottlers,

customers and communities are the foundation on which the entire business grows.

MANIFESTO FOR GROWTH

VALUES:

Coca-Cola is guided by shared values that both the employees as individuals and

the Company will live by; the values being:

LEADERSHIP: The courage to shape a better future

PASSION: Committed in heart and mind

INTEGRITY: Be real

ACCOUNTABILITY: If it is to be, it’s up to me

COLLABORATION: Leverage collective genius

INNOVATION: Seek, imagine, create, delight

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QUALITY: What we do, we do well

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.

VISION FOR SUSTAINABLE GROWTH

PROFIT: Maximizing return to shareowners while being mindful of our overall

responsibilities.

PEOPLE: Being a great place to work where people are inspired to be the

best they can be.

PORTFOLIO: Bringing to the world a portfolio of beverage brands that

anticipate and satisfy peoples’ Desires and needs.

PARTNERS: Nurturing a winning network of partners and building mutual

loyalty.

PLANET: Being a responsible

global citizen that makes a

difference.

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FIGURE 2: VISION FOR SUSTAINABLE GROWTH

HINDUSTAN COCA-COLA BEVERAGES

PRIVATE LIMITED (HCCBPL)

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ABOUT THE COMPANY

Coca-Cola was the leading soft drink brand in India until 1977, when it left rather

than reveal its formula to the Government and reduce its equity stake as required

under the Foreign Regulation Act (FERA) which governed the operations of foreign

companies in India. Coca-Cola re-entered the Indian market on 26th October 1993

after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group

gave the Company instant ownership of the top soft drink brands of the nation. With

access to 53 of Parle’s plants and a well set bottling network, an excellent base for

rapid introduction of the Company’s International brands was formed. The Coca-

Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza,

which were floated by Parle, as these products had achieved a strong consumer

base and formed a strong brand image in Indian market during the re-entry of Coca-

Cola in 1993.Thus these products became a part of range of products of the Coca-

Cola Company.

In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-

entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm

of the Coca-Cola Company. However, this was based on numerous commitments

and stipulations which the Company agreed to implement in due course. One such

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major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of

its shareholding in favor of resident shareholders by June 2002.

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 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.

“Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like

“Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This

resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India.

Between 2001 and 2003, the per capita consumption of cold drinks doubled due to

the launch of the new packaging of 200 ml returnable glass bottles which were

made available at a price of Rs.5 per bottle. This new market accounted for over

80% of India’s new Coca-Cola drinkers. At Coca-Cola, they have a long standing

belief that everyone who touches their business should benefit, thereby inducing

them to uphold these values, enabling the Company to achieve success, recognition

and loyalty worldwide.

MANIFESTO FOR GROWTH

VALUES

The values that the employees in the Company are expected to keep up to and

work by regularly are as follows:

LEADERSHIP: To take an initiative and lead, motivate and drive the team

with energy and zeal, to deliver outstanding results.

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INNOVATION: To continuously strive for progress and reach the next level of

excellence in everything we do.

PASSION: To be deeply committed and display drive and energy in the quest

to deliver outstanding performance.

TEAMWORK: To unite for greater strength and work collectively as a group

towards the achievement of common goals.

OWNERSHIP: To think and act like owners at all levels; to have decisions

taken at the lowest appropriate level.

ACCOUNTABILITY: To be individually and transparently accountable to our

colleagues for delivering agreed targets and goals.

VISION FOR SUSTAINABLE GROWTH

To provide exceptional strategic leadership in the Coca-Cola India System-resulting

in consumer and customer preference and loyalty, through Coca-Cola’s

commitment to them, and in a highly profitable Coca-Cola Corporate branded

beverages system.

MISSION

To create consumer products, services and communications, customer service and

bottling system strategies, processes and tools in order to create competitive

advantage and deliver superior value to;

Consumers as a superior beverage experience

Consumers as an opportunity to grow profits through the use of finished

drinks

Bottlers as an opportunity to grow profits in volumes

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Bottlers as a trademark enhancement and positive economic value added

Suppliers as an opportunity to make reasonable profits when creating real

value-added in an environment of system-wide team work, flexible business

system and continuous improvement

Indian society in the form of a contribution to economic and social

development.

QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds and

actions by continually improving our processes…Every time.”

SWOT ANALYSIS OF HCCBPL

STRENGTHS

DISTRIBUTION NETWORK: The Company has a strong and reliable

distribution network. The network is formed on the basis of the time of

consumption and the amount of sales yielded by a particular customer in one

transaction. It has a distribution network consisting of a number of efficient

salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet

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.

STRONG BRANDS: The products produced and marketed by the Company

have a strong brand image. People all around the world recognize the brands

marketed by the Company. Strong brand names like Sprite, Fanta, Limca,

Thums Up and Maaza add up to the brand name of the Coca-Cola Company

as a whole. The red and white Coca-Cola is one of the very few things that

are recognized by people all over the world. Coca-Cola has been named the

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world's top brand for a fourth consecutive year in a survey by consultancy

Interbrand. It was estimated that the Coca-Cola brand was worth

$70.45billion. (http://news.bbc.co.uk/1/hi/business/4706275.stm)

LOW COST OF OPERATIONS: The production, marketing and distribution

systems are very efficient due to forward planning and maintenance of

consistency of operations which minimizes wastage of both time and

resources leads to lowering of costs.

WEAKNESSES

LOW EXPORT LEVELS: The brands produced by the company are brands

produced world wide thereby making the export levels very low. 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. Therefore,

people abroad, are apprehensive about Coca-Cola products from India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND

ACHIEVE ECONOMIES OF SCALE: The Company’s operations are carried

out on a small scale and due to Government restrictions and ‘red-tapism’, the

Company finds it very difficult to invest in technological advancements and

achieve economies of scale.

OPPORTUNITIES

LARGE DOMESTIC MARKETS: The domestic market for the products of the

Company is very high as compared to any other soft drink manufacturer.

Coca-Cola India claims a 58 per cent share of the soft drinks market; this

includes a 42 per cent share of the cola market. Other products account for

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16 per cent market share, chiefly led by Limca. The company appointed

50,000 new outlets in the first two months of this year, as part of its plans to

cover one lakh outlets for the coming summer season and this also covered

3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage

market.

EXPORT POTENTIAL: The Company can come up with new products which

are not manufactured abroad, like Maaza etc and export them to foreign

nations. It can come up with strategies to eliminate apprehension from the

minds of the people towards the Coke products produced in India so that

there will be a considerable amount of exports and it is yet another

opportunity to broaden future prospects and cater to the global markets

rather than just domestic market.

HIGHER INCOME AMONG PEOPLE: Development of India as a whole has

lead to an increase in the per capita income thereby causing an increase in

disposable income. Unlike olden times, people now have the power of buying

goods of their choice without having to worry much about the flow of their

income. The beverage industry can take advantage of such a situation and

enhance their sales.

THREATS

IMPORTS: As India is developing at a fast pace, the per capita income has

increased over the years and a majority of the people are educated, the

export levels have gone high. People understand trade to a large extent and

the demand for foreign goods has increased over the years. If consumers

shift onto imported beverages rather than have beverages manufactured

within the country, it could pose a threat to the Indian beverage industry as a

whole in turn affecting the sales of the Company.

TAX AND REGULATORY SECTOR: The tax system in India is accompanied

by a variety of regulations at each stage on the consequence from production

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to consumption. When a license is issued, the production capacity is

mentioned on the license and every time the production capacity needs to be

increased, the license poses a problem. Renewing or updating a license every

now and then is difficult. Therefore, this can limit the growth of the Company

and pose problems.

SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it

is not without its problems: Low per capita disposable incomes that is half the

urban disposable income; large number of daily wage earners, acute

dependence on the vagaries of the monsoon; seasonal consumption linked to

harvests and festivals and special occasions; poor roads; power problems;

and inaccessibility to conventional advertising media. All these problems

might lead to a slowdown in the demand for the company’s products.

COMPETITORS TO HCCBPL

The competitors to the products of the company mainly lie in the non-alcoholic

beverage industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola

Company never ends for the World's # 2, carbonated soft-drink maker. The

company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the

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company's only beverage; PepsiCo sells Tropicana orange juice brands,

Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and

Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market

share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to

Pepsi.

Nestlé: Nestle does not give that tough a competition to Coca-Cola as it

mainly deals with milk products, Baby foods and Chocolates. But the iced tea

that is Nestea which has been introduced into the market by Nestle provides

a considerable amount of competition to the products of the Company. Iced

tea is one of the closest substitutes to the Colas as it is a thirst quencher and

it is healthier when compared to fizz drinks. The flavored milk products also

have become substitutes to the products of the company due to growing

health awareness among people.

Dabur: Dabur in India, is one of the most trusted brands as it has been

operating ever since times and people have laid all their trust in the Company

and the products of the Company. Apart from food products, Dabur has

introduced into the market Real Juice which is packaged fresh fruit juice.

These products give a strong competition to Maaza and the latest product

Minute Maid Pulpy Orange.

PRODUCTS

_______________________________________________

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:

22 | P a g e

In the Cola Section:

In the Lemon section:

In the Orange section:

In the Juice section:

23 | P a g e

In the Soda Water and Bottled Mineral Water section:

24 | P a g e

1. RATIONAL OF THE STUDY

Sales and distribution is an integral part of marketing. Here, Coca Cola the

leading brand in soft drinks worldwide. Coke has maintained its brand image

with high precision. The marketing strategy of Coke is very stringent than

others. The main features in their marketing by their offerings and its sales

and distribution. It’s my gratitude to work with Coca Cola company specially

in marketing department. I have been placed their in sales and distribution

department for my internship. The research work was not so easy as Coca

Cola is very strict in their marketing policy.

In the beginning the main reason for conducting this study was to know the

proper allocation of distribution to the suppliers and also to know about the

products sales.

Further, it is to understand the availability of the product and to check out

that there is the proper advertising of the product and also to know the

working condition of the visicooler provided by the company. Also to know

the various scheme provided by the Coca Cola is really applied in the market

or not. To compare the schemes with Pepsi products.

The study is done to understand the problem of the retailers, and

understanding the presale concept. Thus, these were the main reasons for

conducting this study.

2. RED (RIGHT EXECUTION DAILY)

OBJECTIVES OF STUDY

1. The main objective of this RED project is to increase the sales of the

company.

2. To advertise the various products of the company.

3. To find out the present sales status of ThumsUp, Coke, Sprite, Limca,

Fanta, maaza at the retail outlets in the area..

4. To collect data from retailers for the activation of new channels of

distribution.

5. To study the pre-sale concept of the coke.

6. To ensure the availability and visibility of the product.

25 | P a g e

7. To analyze the effect of scheme.

SCOPE OF THE STUDY

1. By this study company can know its growth.

2. This study helps the company to know their actual position in the

market.

3. RED helps to find out the promotion activities of the company and help

to make relevant changes according to their rivalry company.

4. This study ensures the availability of the product in the market.

5. The study helps to fond out the problem of the counter and to find out

the requirement for more sales.

6. RED helps to maintain the outlets in a well designed way to attract the

consumers.

SIGNIFICANCE OF THE STUDY

1. This project is helpful to find out the sale trends of the coke products

and its

effect on consumer value and satisfaction.

2. This study provides an insight to the company that what kind of

strategy must be

adopted in order to increase the sales and satisfaction o the consumer.

3. This project directly deals with the interaction of different kind of

people.

26 | P a g e

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 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 did scoring on the scoring sheet.

The scoring sheet was provided on the basis of which scoring can be done.

Scoring is done out of 100 marks and they have been further divided in 3

components

1. VISI COOLER - 30 points

2. AVAILABILTY - 50 points

3. ACTIVATION – 20 points

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

coordination

between MD’s and SALES TEAM and report to higher officials (Mr. Sunil Shelly

and Mr. Sanjay Kotwal)

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BRAND CONTACT - I had to interact regularly with shopkeepers to know

their

problem and try to solve them. If I could solve them then I reported them to

my company

guide, else he suggested me the alternatives, and I also took out the orders

from retail

outlets and to check out the activation.

AVAILABILTY - I also need to give company weekly availability report of

various

brands.

BRANDS TAGLINE

ThumsUp - Taste the thunder

Cocacola - Open happiness

Sprite - Seedhi baat no bakwaas , clear hai

Limca - Fresh ho jao

Fanta - Go bite

Maaza – asli aam ka maza

MMNF—ghar jaisa nimbu pani

BRAND AMBASSDORS

ThumsUp -Akshay Kumar

Cocacola -Aamir Khan

Sprite -Shahrukh Khan

Fanta -Genelia D’souza

Limca –Hritisha Bhatt

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ABOUT BRANDS

THUMSUP

It is the leading brand of the company. It has cola flavor. ThumsUp is the

highest selling beverage brand of India. Mostly like by the youngsters

specially boys. The competitor of the brand on same category is Pepsi.

COCACOLA

This is the world’s most famous & old brand. This brand is specially liked by

teenagers & youngsters.

The competitor on the cola category is Pepsi.

SPRITE

This brand is the one of the fastest growing brand in the country. Sprite is

liked by all age groups & people. Jan 09 report of “The times of India” claims

sprite to be the second brand in sales after ThumsUp

Competitor : 7up & Mountain dew

LIMCA

Limca is cloudy lemon in flavor. This is very unique in this category .It has

white in

color.

Competitor : Mirinda Lemon

FANTA

Fanta has two flavors apple & orange. This is very popular drink among

females.

Competitor: Mirinda.

MAAZA

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This has mango flavor. Maaza is popular among children and women.

Competitor: Slice, frooti

MINUTE MAID pulpy orange

This is orange juice .This contains no sugar & added flavor .This is a family

drink.

Competitor : Tropicana

MINUTE MAID Nimbu Fresh

this is a lemon juice made from extracts of lemon a pure nimbu pani.

Competitor: Nimbooz, LMN

KINLEY

This comes in two variety-mineral water & soda. Mineral water is used by all

but soda is

commonly used for alcoholic purpose by adult people.

Competitor : Aquafina, Bisleri

ADVERTISING

Advertising is a non promotion of goods & services by sponsor who can identified andwho has paid for his communication. Their purpose of advertisement is to sell something goods or services,idea ,person or place.

BRAND AMBASSDORS & TV COMMERCIALS

COLA WAR (neck to neck)

30 | P a g e

Bollywood rising stars Asin (Right) for PepsiCo’s Mirinda,Genelia D’souza (Left) for Coca-Cola’s Fanta

Tennis star Sania Mirza for Sprite

Bollywood star Aamir Khan for Coke

31 | P a g e

Bollywood star Akshay kumar for ThumsUp

Bollywood superstar Shahrukh Khan new Brand Ambassador of Sprite

32 | P a g e

Hrishita Bhatt with Limca

REVIEW OF LITERATURE

33 | P a g e

RED CONCEPT

RED stands for Right Execution Daily. It is a survey method for the company

to know

their position in the market.

ABOUT RED

1. To check the availability of the visi cooler provided by the company to

the retail

outlets for their products.

2. To check the activation in various outlets.

3. To check the branding order of the various products in the cooler.

Survey has done in the four topics-

1. Impurity

2. Brand Order

3. Availability

4. Activation

IMPURITY

There should be no impurity in the visi cooler of the company. Impurity here refers to that brand which is presented in the visi cooler other than coke’s product. Therefore not other product of any other company may not be in the cooler.

BRAND ORDER

The company has given a brand order to the market developers to arrange the differentbrands in a specific order in the cooler. The order should be in such a way-

1. Thumsup2. Coca cola3. Sprite4. Limca5. Fanta6. Maaza7. Kinley8. Pet & Juice

34 | P a g e

Pack Number of bottles in a case

200 ml 24

250 ml 24

300 ml 24

400 ml 24

600 ml 24

1 litre 12

1.2 litre 12

1.25 litre 12

2 litre 9

AVAILABILTY

Availability is done according the type of outlet. There are four type of outlet

mentioned

below. According to this market developer has to ensure the availability of

the products

in the particular outlet.

ACTIVATION

35 | P a g e

Activation is important because it helps to boost the sales of the company. it

is done

through the Glow sign, Shelf display, flanges. Combo boards, Table tops .This

boards

usually gives to the E&D outlets .It helps to attract the customers. Rack with

header is

provided to the grocery stores.

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

SHELF DISPLAY

36 | P a g e

DISPLAY OF RACK VISI

COOLER

OPTIONAL ELEMENTS:-

1. STANDEE

2. SIX MOBILE HANGER

3. VISI COOLER BRAND STRIP

37 | P a g e

4. WARM DISPLAY RACK

5. TABLE TOP RACK

6. TENT CARD

TYPES OF OUTLETS

The company has divided their outlets on the basis of the following criteria-

Volume

Channel

Income group

1. VOLUME

Diamond 800 above 30 cases

Gold 500-799 20 cases

Silver 200-499 7/9 cases

Bronze 100-199 4/7 cases

2. 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 kirana stores,juice , departmental

stores, supermarkets, provision stores etc.

Necessary Availability - 2 liter and 300ml

(B) EATING & DRINKING CHANNEL 1

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

- Dhabas

- Cafes

(C) EATING & DRINKING CHANNEL 2

It includes bakery, sweet shops, tea shops, soft drink shops and juice centre.

(D) CONVENIENCE CHANNEL

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Pan/bidi shops (customer profile) : This segment includes PAN BIDDI

outlets that

stock cigarettes, mint, confectionary. It covers STD/ISD phone booths, travel

channel etc. Small outlets that mainly sell 200ml or 300ml bottles. They may

also sell 600ml.

INCOME GROUP

According to the income group of the area-

Low- Those outlets where low income customer comes.

Medium- Those outlets where medium income customer comes.

High- Those outlets where high income customer comes.

Market Segmentation models

Visi-cooler position, display & Brand Order Compliance

39 | P a g e

Under RED market developer has to ensure that shopkeeper must display allUnder RED market developer has to insure that shopkeeper must display all products.Display may be in the form of Shelf Display, Table Top Display etc. All products mustbe displayed in brand order i.e. Thumsup, Coke, Sprite, Limca, Fanta, Maaza,Minute Maid Pulpy Orange, Kinley (mineral water & Soda water).

RED SCORE TRACKINGThe performance of market developer is measured on the basis of score tracking.Tracking will be done of the following Parameters:

1. Visi-cooler 35 points

2. Availability 40 points

3. Activation Elements 25 points

TOTAL 100 points

These 100 points are distributed in various Parameters explained in the following table

RED SCORING SHEET

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RED SCORING SHEET

RED PARAMETERGROCERY E&D CONV.D G S D G S D G S

VISICOOLER

Is a coca cola cooler present Is the cooler as per standard 4 4 4 4 4 4 4 4 4

Is the cooler in prime location 10 10 10 10 10 10 10 10 10

Is the visicooler in a working Condition 3 3 3 3 3 3 3 3 3Is the visicooler light working 2 2 2 2 2 2 2 2 2Is the cooler 100% pure 10 10 10 10 10 10 10 10 10Is the cooler brand order compliant 6 6 6 6 6 6 6 6 6Total  35 35 35 35 35 35 35 35 35

AVAILABILITY

CAN 4 4 RGB-CSD 12 22 25 25 14 18 18RGB-MAZAA 4 8 10 10 4 4 4MOBILE-CSD 16 16 10 6 5 5 13 13 14MOBILE-MAZAA 4 4 4 3 3 4LARGE PET-CSD 16 16 10 LARGE PET-MAZAA 4 4 TP-MAZAA 2 2 TOTAL  40 40 40 40 40 40 40 40 40

ACTIVATION

W arm Display Rack 10 10 8 10 10 10Is the rack pure and charged 10 10 7 Shelf Display 5 5 5 Crate display with wrap 5 5 5Flange/Standee/GSB / DPS board/Flex board 5 5 5 10 10 10Aerial Mobile Hanger 5 5 Menu board/Menu card 15 Combo communication 15 15 Branded table mat/table vinyl 5 5 Total   25 25 25 25 25 25 25 25 25

DISTRIBUTION NETWORK

41 | P a g e

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

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.

DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY

Coca-cola company distributes their schemes according to area. Area or

place where

soft drinks sold in a large manner, on those place company gives good

schemes to

shopkeeper and retailer. Place like railway station bus stand are consider in

this category and place which have low selling where company gives small

schemes to the

shopkeeper.

Criteria for providing free chilling equipment

An ice box is provided for the sale of 1-2 crates daily to the retailers.

For the sale of 5-6 crates daily a visi cooler of 4 crates is provided.

For the sale of 7-8 crates daily a visicooler of 7 crates is provided by the

company.

42 | P a g e

If the sale exceeds 9 crates daily then a visicooler of 9 crates or deep fridger

is

provided by the company, A STEPLIZER OF 1 KV to 5 KV is provided with the

visi cooler & chest cooler.

SALES PROMOTION

PUSH & PULL STRATEGY

PUSH STRATEGY:-

HCCBPL is using Push strategy in which they use its sales force and trade

promotion

money to induce intermediaries to carry, promote and sell the product to end

users i.e.

consumers. For example-as HCCBPL is giving free pet bottles and other trade

schemes to distributors, agency owners and retailers.

PULL STRATEGY:-

HCCBPL is also using Pull strategy in which they are using advertising and

promotion to persuade consumers to ask intermediaries for the company

brand product by this way

HCCBPL inducing customer to order it from shopkeeper. For example-

HCCBPL is using flanges, display racks, tier racks, standees, mobile hangers

and visicooler brand strips.

RESEARCH METHODOLOGY

The research includes the study which was descriptive in nature. It basically

aims about

43 | P a g e

how coke schemes plays in the mind of shopkeepers and the consumers.

The study includes two methods-

(a)PRIMARY

(b)SECONDARY

Primary includes the following ways-

Observation

Experiment

Survey

Here we include the primary method of survey

Research Instruments-

Questionnaire-A printed questionnaire was there to make the survey.

RED scoring sheet

Area of Survey-Canal Road, Bhagwati Nagar, Jewel Chowk, Bus Stand,

Anand Nagar, Roop Nagar, Muthi and BSF Paloura.

Sampling plan

Sampling unit - Owners of the retail outlets.

Sampling size- 250 outlets

Sampling procedure-Random sampling

Sampling method- Retailers survey

SECONDARY DATA- For the secondary study data was not available so it is

taken

from company records.

AREA- Canal Road, Bhagwati Nagar, Jewel Chowk, Bus Stand, Anand Nagar,

Roop Nagar, Muthi and BSF Paloura.

SIZE OF VISICOOLER

44 | P a g e

5%

14%

74%

4% 3%

percent

2cs4cs7cs9cs20cs

Is pre-selling good or bad

90%

10%

pre-sellinggood bad

45 | P a g e

HOW MUCH HAS THE VISIBLE PRODUCT?

board flange rack table top0

50

100

150

200

250

visiblenot visible

Leading brand of coca-cola

thumsup48%cocacola

9%

limca20%

sprite8%

fanta7%

maaza8%

share

46 | P a g e

Channel of Coke

7%

68%

25%

channelsE&D convenience Grocery

OUTLET BELONG TO WHICH CLASS

DIAMOND28%

GOLD14%SILVER

36%

BRONZE22%

CLASS OUTLET

47 | P a g e

high30%

medium20%

low50%

INCOME GROUP

MARKET SHARE

70%

30%

MARKET SHARE

NOT FAMILIARFAMILIAR

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DIVISION OF MARKET

70%

30%

DIVISON OF MARKET

NOT FAMILIARFAMILIAR

RETAILER FAMILIAR WITH RED

70%

30%

NOT FAMILIARFAMILIAR

Project RED is a live project. It can broadly be classified in two stages, which can be described as follows.

49 | P a g e

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 know 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 Jewel, Bus Stand, Canal Road. To ensure effective and fruitful

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.

PJP(permanent journey plan)

(P.J.P. plan):. The P.J.P. plan is a day wise schedule of a market developer

which

contains the names of the outlets to be visited by him coming under the

campaign R.E.D. where the project has to be implemented. After getting

permanent journey plan the next step was to visit the outlets for gaining

50 | P a g e

initial information of every individual outlet as well as market on a whole.

The visit to all the outlets of that area helped in revealing its market

condition. Visiting the outlets clearly showed the picture of the market

situation prevalent in market..

PRE SALE CONCEPT

This is a new concept by the company. In this concept company takes order

one day

before and then delivers the product to each route. So this gives more time

to market

developer to assure RED.

This concept has so many advantages-

This gives more time to the market developer for the activation &

branding purpose.

By this company can easily implement the RED concept in better way.

Presale concept makes assure of more availability of the products in

the market.

This concept is easy in processing.

By this concept market developer can arrange the product in better

way.

The Company can display its products in proper way so that customers

can attract towards it.

HORIZONTAL EXPANSION

Horizontal expansion means inclusive of new outlets. I in this training converted b 2 outlets from Pepsi to coca cola and one new outlet.

HYPOTHESIS

Hypothesis

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(A) Null hypothesis (H0 ):The coke has more consumption then Pepsi.

(B) Alternate Hypothesis (H1): The coke has not more consumption then

Pepsi.

(C) Let the level of significance is(α)= 5%In testing the hypothesis since the

test is two tailed is Z=+-1.96

TEST FORMULA

Z= P1-P2

√PQ [1+ 1]

n1 n2

P= n1P1 +n2P2

n1+n2

Q=(1-P)

where

P-Total population proportion of Coke & Pepsi

P1-Sample proportion of coke

P2-Sample proportion of Pepsi

n1- sample size of coke

n2- sample size of Pepsi

After calculated value is Z=1.34 which is less then calculated from the table

Z=1.96 hence null hypothesis is accepted.

CONCLUSION –The coke product is more consumption then Pepsi.

2)Hypothesis

(A)Null hypothesis (H0 ):The market share of coke is higher than Pepsi.

(B)Alternate Hypothesis (H1): . The market share of coke is not higher than

Pepsi.

(C)Let the level of significance is(α)= 5% which the hypothesis is tested.

FORMULA

Z = P*-P

52 | P a g e

√P(1-P)

n

P=Sample proportion

P*=Population proportion

n=sample size

The calculated value is less then value calculated from the table that is 1.96,

So the null Hypothesis is accepted.

CONLUSION- The Market share of coke is higher than Pepsi

3)Hypothesis

(A)Null hypothesis (H0 ):Presale is good for the company.

(B)Alternate Hypothesis (H1): Presale is not good for the company

(C)Let the level of significance is (α)= 5% which the hypothesis is tested.

FORMULA

Z = P*-P

√P(1-P)

n

P=Sample proportion

P*=Population proportion

n=sample size

The calculated value(1.56) is less than the value calculated from the table

that

is 1.96 hence hypothesis is accepted.

Conclusion – Presale is good for the company.

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 Visicooler must be on prime location, all brands must

available, all brands must displayed in brand order i.e. COLOJK. All the

53 | P a g e

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

“JO DIKHTA VO BIKTA HAI”

Definitely when sales increase then profits also increases. With the help of

this project company has increased its sale in Jammu region and also

company can measure or check the performance of each retailers working all

over the world with COCA COLA COMPANY.

FINDINGS

According to the demand of outlet owners, delivery of products are not

made available in the outlets.

Efficient brands of coca – cola are not available in outlets.

Sales people and delivery persons do not visit the outlets on a regular

basis.

Advertisement materials are not available in the right time at the right

place i.e. different Channels like Grocery, Convenience, E&D.

Many outlet owners have complains on improperly working visicooler

i.e. its cooling Capacity is low or its lights are not working.

Improper management is seen as No mechanics visit the outlets

despite of complaints issued by outlet owners.

Visicoolers are not placed at their Prime locations in many outlets.

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

B companies.

54 | P a g e

FACTS

The most popular flavor is Thumsup in the whole market.

Cocacola is the market leader and Pepsi is the market challenger.

Thumsup has the highest sales from the Coca cola’s side and from the

Pepsi‘s side mountain Dew has the highest sales.

Aquafina has more sales then Kinley in mineral water segment.

Pepsi provides more schemes then Cocacola.

Sprite has the fastest grownup brand in the clear lime segment in the

recent years.

In the off season when the sale is reduced retailers want more

schemes.

Minute maid pulpy orange has not getting good response from the

market.

Availability of visicooler is another issue.

SUGESSTIONS

Delivery position should be maintained to get good return from the

market.

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.

55 | P a g e

Sales People and delivery persons should properly monitor the market

whether

stocks are available and are properly utilized in the market or not.

We can provide them beautiful display racks, tablemats, menu-cards

etc,

containing the trademark and brand name of the company.

Display material should be provided to the retailers on more regular

basis to

increase the sales level.

Maintenance work of refrigerator; i.e. purity must be improved.

The company should take steps to replace damaged or unsellable

Coca-Cola

goods frequently from the retailers.

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.

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.

56 | P a g e

QUESTIONNAIRE

NAME OF OUTLET OWNER: AREA:

CONTACT NO.:

(A ) GENERAL QUESTIONS

1).Type of channel

a) Grocery ( ) b) Eating & Drinking1 ( ) c) E&D2 ( ) d) Convenience ( )

2). Type of category

a) Diamond ( ) b) Gold ( ) c) Silver ( )

3). Are you familiar with project RED?

a) Familiar ( ) b) Unfamiliar ( )

4).Your belief on Coca Cola increased from Project RED by?

57 | P a g e

a) 25% ( ) b) 50% ( ) c) 75% ( ) d) 100% ( )

5).What kind of incentives you are getting from distributors?

a) Schemes ( ) b) Prizes ( ) c) Scratch coupons ( ) d) Cash discount ( ) e) None ( )

(B) AFTER PROJECT RED

6) Improvement in condition of visicooler?

a) Yes ( ) b) No ( ) c) As it is ( )

dailyweeklymonthly

7) Has the availability of product increased?

a) Yes ( ) b) No ( ) c) As it is ( )

2%

18%

80%

58 | P a g e

8) Has the activation of outlet increased?

a) Yes ( ) b) No ( ) c) As it is ( )

2%

18%

80%

Chart Title

9) Is the delivery of Coca cola’s product increased?

a) Yes ( ) b) No ( ) c) As it is ( )

2%

18%

80%

Chart Title

(C) PERFORMANCE OF RED TEAM

10) What is the performance of Market developer?

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a) Poor ( ) b) Better ( ) c) Best ( )

2%

18%

80%

Chart Title

11) What is the frequency of deliveryman visit?

a) Daily ( ) b) Weekly ( ) c) Monthly ( ) d) Never ( )

2%

17%

78%

3%

dailyweeklymonthlynever

12) What is the frequency of visit of DGM/MEM?

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a) Daily ( ) b) Weekly ( ) c) Monthly ( ) d) Never ( )

2%

17%

78%

3%

dailyweeklymonthlynever

13) Do you want to continue with RED project?

a) Continue ( ) b) Discontinue ( )

90%

10%

continuediscontinue

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DECLARATION

I, VINEET BHAT, hereby declare that this Project titled “INCREASING IMPACT

OF RED (RIGHT EXECUTION DAILY) in Jammu city for “HINDUSTAN

COCACOLA BEVERAGES PVT LTD.” Is based on live project study

conducted by me under the guidance of Mr.Devender Sachdeva. This project

has not been submitted earlier for the award of any other Degree/diploma to

any other Institute or University.

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PLACE: JAMMU VINEET BHAT

DATE :12 JUL, 2010

REFERENCE BOOKS

Marketing Management : Philip Kottler

Marketing Research : Bound, Stash & Others

“Booklet of RED”, COCA COLA INDIA

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INTERNET

www.coca-cola.com

www.cocacolaindia.com

www.google.co.in