Reliance Refining Building Worlds Larges Coke Gasification Project
Project Report@Coke
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With the development of world and human being, the taste, need and the attitude of human being
also changes. India is one of the common market in the world with a population of more than
one billion. Soft drink is a popular common product which is generally purchased by consumers
for quenching their thirst in summer and also to have cooling refreshment. As far as the market
of soft drinks is concerned, it is facing cut throat competition from the larger number of soft
drinks available in the market. Different brands are available in every segment of flavors, but the
attitudes of the consumers differ from each other due to several factors. Every company tries to
increase their market share and their sales volume. Discounting system followed by the
companies proved to be an essential factor to boost up the purchases made by the retailers. The
companies try to attract the retailers to purchase more by providing some schemes or incentives
or cash/card discount. If more discount or any other incentive scheme is given to the outlets, they
make purchases to avail that offer. Therefore, it is essential for any company to have an efficient
and effective discounting system.
Distribution is the spine of any FMCG company. The main function of a retailer is to bridge the
gap between the supplier and the customer. The central focus of distribution is to increase the
efficiency of time, place, and delivery utility. For any FMCG product it is essential to have a
good distribution network which should be better than that of its competitors.
1. INTRODUCTION
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Distribution is the key area for any FMCG business. For a smooth distribution network, it is
essential to keep the retail outlets satisfied which in turn mainly depend upon the profitability.
Their profitability is checked by keeping a satisfied profit margin for them. Apart from that, the
company also provides discount on purchase of different pack sizes to some HVOs which in turn
increases their profit margin. Sometimes the company also provides incentives to the outlets
which make frequent and high purchases. To meet stiff and challenging competition from some
of the other brands, it is essential for the company to have an effective and efficient distribution
network. Therefore, the company tries to keep the outlets satisfied by offering discounts and
some other incentive schemes from time to time.
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1.1 COMPANY PROFILE
Coca-Cola (also known as Coke, a name that was trademar ked by The Coca-Cola Company
after it was discovered many people called it by that particular name) is a very popular cola (a
carbonated soft drink) sold in stores, restaurants and vending machines in more than 200
countries. It is produced by the Coca-Cola Company (NYSE: KO), which is also often referred
to as simply Coca-Cola orCoke. Coke is one of the worlds most recognizable and widely sold
commercial brands; its major rival is Pepsi.
Coke was originally intended as a patent medicine when it was invented in the late 19th century,
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. Although
faced with critiques of its health effects and various allegations of wrongdoing by the company,
Coca-Cola has remained a popular soft drink to the present day 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 thanks to a belief that carbonated water was good for the health. The first sales were made
at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight months only
HINDUSTAN COCA-COLA BEVERAGES PVT. LTD.
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nine drinks were sold each day. Coca-Cola was sold in bottles for the first time on March 12,
1894,
and cans of Coke first appeared in 1955. By 1888, three versions of Coca-Cola - sold by three
separate businesses were on the market.
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. The company actually produces
concentrate for Coca-Cola, which is then sold to various 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
single largest Coca-Cola bottler in North America and 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 famous of these is Diet Coke, which has become a major diet cola but others
exist, such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola Company owns and
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markets other soft drinks that do not carry the Coca-Cola branding, such as Sprite, Fanta, and
others. 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
Through out 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 fill it into cans and bottles, which the bottlers then sell and distribute to retail
stores, vending machines, restaurants and food service distributors. The bottlers are normally
also responsible for all advertisement and other sales initiatives within their areas.
Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. In
India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink Thums Up. However,
The Coca-Cola Company purchased Thums Up in 1993. The products of the company reach
consumers and customers around the world through a vast distribution network made up of local
bottling companies. These bottlers are located around the world, and most are independent
businesses. Using syrups, concentrates and beverage bases produced by the Coca-Cola
Company, their global bottling system packages and markets products, then distributes them to
more than 14 million retail outlets worldwide. The Coca-Cola Company is committed to
assisting its bottlers with the functions of an efficient bottling operation and initiating quality
systems to ensure the highest quality products for their consumers.
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The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in 1893,
followed by "Coke" in 1945. The unique contour bottle, familiar to consumers everywhere, was
granted registration as a trademark by the U.S. Patent and Trademark Office in 1977, an honor
awarded very few packages. The most valuable assets happen to be the trademarks they possess.
For Coca-Cola, the most drunk soft drink on earth is one of the world s best-known and most
admired trademarks, recognized by more than 90 percent of the world s population.
Interestingly, the world that is touched by the cherished drinks for every moment, the Coca-Cola
trademarks happen not only to be their most valuable assets but of the entire earth. The business
system of the Company in India directly employs approximately 6,000 people, and indirectly
creates
employment for many more in related industries through our vast procurement, supply and
distribution system. On the distribution front, 10-tonne trucks, open-bay three-wheelers that can
navigate the narrow alleyways of Indian cities, ensure availability of our brands in every nook
and corner of the country. The term soft drinkoriginally applied to carbonated drinks made
from concentrates, although it now commonly refers to almost any cold drink that does not
contain alcohol.
Hindustan Coca-Cola Beverages Private Limited is an Indian subsidiary of the US based
Coca-cola Company. The company-owned Bottling arm of the Indian Operations, Hindustan
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Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and distribution of
beverages across the country. Coca-Cola India is among the countrys top international
investors, having invested more than US$ 1 billion in India within a decade of its presence and
further pledged another US$ 100 million in 2003 for its operations. It is the worlds largest
selling soft drink since 1886. The Coca-cola Company returned to India in 1993 after a gap of 16
years giving a new thumbs up to the Indian Soft Drink Market and took over the ownership of
the
nation's top soft-drink brands and bottling network. The vast Indian operations comprises 25
wholly company owned bottling operations and another 24 franchisee owned bottling
operations and a network of 21 contract packers also manufactures a range of products for the
Company.
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1.2 MISSION OF HCCBPL:-
To refresh the world in mind, body & spirit.
Being a global leader in beverages.
To create a value in brands & difference every where we engage.
To make a difference in our product.
Our product in each hand.
To inspire the moments of optimism through our brand and action
To do every thing differs.
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VISION OF HCCBPL:-
Profit : Maximize the return of the shareholder.
People : Establish a great place to work where people are inspired to the best they can
do.
Portfolio : Bringing to the world a portfolio of beverage brand that anticipates and
secure peoples desires & need.
Partners : Nurturing a winning network of partners & building a mutual loyality.
Planet : Being a responsible citizen that makes a difference.
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1.5 SWOT ANALYSIS:-
Coca-Cola Company is one of the leading MNC in the world. It has made a remarkable
growth since it origin and it has got a good potential in spite of various hurdles coming its way.
By going through its SWOT analysis we can know much more about the company.
STRENGTH:
The company has got various strengths, which leads the company be a market leader.
Some of the strengthslisted below:
A)Strong product line:
The company has got various fast moving products which are going great job in the market.
These soft drinks not only quench thirst but also refresh everyone it touches. One of the strong
brands of the company is Thumps Up, which specially doing well in the Indian market. It has
captured one of the major shares of the soft drink market.
B.) Advertising:
Advertising plays a major in promoting sales of the product. The company has got one of the
best advertising strategies. Appointing film actors, as the brand ambassadors, makes a great
impact on the mind of the customers. The company should try to launch more and more
advertising and sales campaigns to promote sales to the maximum.
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WEAKNESS:
As no man in this world is a complete man and so are the companies. Every company has
got weakness so as Coca-Cola Company too. Some of the weaknesses which the company
should overcome are as follows:
A.) Distribution network:
The company has got an average distribution network this is one of the reason why the company
fails to fulfill the demand of the customer at time of peak seasons. It must go for some more
bottling plants and should opt for better distribution channels to increase the sales in the best
possible manner.
B.) Pricing strategy:
The company has got a pricing strategy as there is no certainty of rising or fall of price during
the peak season. This also hamper the sales of the company as the retailers and distributor get
dilemma whether to place the next order or not as increase or decrease in price may hamper their
profit margin and blockage of the goods.
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OPPORTUNITIES:
Instead of weakness and threats the company the company has got various opportunities to
which it has to go for. The opportunities for the company are as follows:
A.) Large Market:
As India is said to be one of the biggest market in the world, thus the company survive for long
and can expands to its length and width. Still there are thousand of villages which have not been
covered by soft drink companies. If the company targets the rural market it can easily make large
profits and thus can also satisfy its aim to benefit and refresh the whole nation.
B.) Launch of other brands:
Coca- Cola Company has got more than 300 brands which is running successfully over the
world. Thus it can launch some more brands in the country, after studying the demand and desire
of the people and can deep its roots by winning their minds and hearts.
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THREATS:
Some of the threats which the can face:
(A) Competitors:
One of the strong competitors of the company is Pepsi Co. thus it has to formulate such
strategies which make it to remain one step ahead and give a strong competition to the
competitors.
Some of the other competitor in the path of growth to the company is the local soft drinks
manufacturers who play an active part at the time of peak season. The other local refreshers like
Nimbu Pani, lassi, fruit juice etc. which hampers the sales of the company.
(B) Govt. Policies:
The policies of the government also play a major role for the company. The company can not
perform well or in its own way by violating the rules of the government. Thus if the government
formulates some policies which creates hindrances in the working of the company it will prove
to be one of the major threats.
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1.7 PRODUCTS AND PACK SIZES:
Coca-cola is the world's favorite drink. It is the world's most valuable brand and the most
recognizable word across the world. Coca-Cola has a truly remarkable heritage. From a humble
beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and
distributor of non-alcoholic beverages in the world.
In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its
departure. Coca-Cola made its return to the country in 1993 and made significant investments to
ensure that the beverage is available to more and more people, even in the remote and
inaccessible parts of the nation. Over the past ten years it has captured the imagination of the
nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-
Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and
various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties. Coca-
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Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had
entered the youth's vocabulary. In 2002, Coca-Cola launched the campaign "Thanda Matlab
Coca-Cola" which sky-rocketed the brand to make it India's favorite soft-drink brand. In 2003,
Coke was available for just Rs. 5 across the country and this pricing initiative together with
improved distribution ensured that all the brands in the portfolio grew leaps and bounds.
Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor,
cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past and today,
its brand ambassadors are Aamir Khanand Hrithik Roshan.
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Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally
introduced in 1977, Thums Up was acquired by the Coca-Cola Company in 1993. Thums Up is
known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This
brand clearly seeks to separate the men from the boys.
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FantaInternationally, Fanta - The 'orange' drink of the Coca-Cola Company, is seen as one
of the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993. Over the
years Fanta has occupied a strong market place and is identified as "The Fun Catalyst".
Fanta is perceived as a fun youth brand and stands for its vibrant color, tempting taste and
tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to
indulge in the moment. This positive imagery is associated with happy, cheerful and specialtimes with friends.
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Lime n' lemoni Limca , the drink that can cast a tangy refreshing spell on anyone,
anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for
over 3 decades. The brand has been displaying healthy volume growths year on year and Limca
continues to be the leading flavor soft drink in the country.
The sharp fizz and lemoni bite combined with the single minded positioning of the brand as the
ultimate refresher has continuously strengthened the brand franchise. Limca energizes, refreshes
and transforms. Dive into the zingy refreshment of Limca and walk away a new person.
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Worldwide Sprite is ranked as the No. 4 soft drink & is sold in more than 190 countries. In
India, Sprite was launched in year 1999 & today it has grown to be one of the fastest growing
soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth icon. With a
strong appeal to the youth, Sprite has stood for a straight forward and honest attitude. Its clear
crisp refresh hingtaste encourages the today's youth to trust their instincts, influence them to be
true to who they are and to obey their thirst.
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Maazawas launched in 1976. It is a drink which offered the same real taste of fruit juices and
was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India and it
currently dominates the fruit drink market.
Over the years, brand Maaza has become synonymous with Mango. This has been the result of
such successful campaigns like "Taaza Mango, Maaza Mango" and "Botal mein Aam, Maaza
hain Naam". Consumers regard Maaza as wholesome, natural, fun drink which delivers the real
experience of fruit.
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The current advertising of Maaza positions it as an enabler of fun friendship moments between
moms and kids as moms trust the brand and the kids love its taste. The campaign builds on the
existing equity of the brand and delivers a relevant emotional benefit to the moms rightly
captured in the tagline "Yaari Dosti Taaza Maaza"
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Kinley Water, a thirst quencher that refreshes, a life giving force that washes all the toxins
away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the
very sustenance of life, a celebration of life itself.
The importance of water can never be understated. Particularly in a nation such as India where
water governs the lives of the millions, be it as part of everyday rituals or as the monsoon which
gives life to the sub-continent. Kinley water understands the importance and value of this life
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giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can
trust to be truly safe and pure.
Kinley water comes with the assurance of safety from the Coca-Cola Company. That is why we
introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of
our product. That's why we go through rigorous testing procedures at each and every location
where Kinley is produced. Because the company believes that right to pure, safe drinking water
is fundamental. Its a universal need which cannot be left to chance.
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The below table shows the brands and products of different pack sizes being sold by the
company in Kanpur region :
BRAND NAME GLASS TETRA PACK PET CAN FOUNTAIN
Coca-cola 200 ml and300ml
- 2L and 600 ml 330 ml Various sizes
Thums up 200 ml and300ml
- 2L and 600 ml 330 ml Various sizes
Fanta 200 ml and300ml
- 2L and 600 ml 330 ml Various sizes
Limca 200 ml and300 ml
- 2L and 600 ml 330 ml Various sizes
Sprite 200 ml and300 ml
- 2L and 600 ml 330 ml Various sizes
Maaza 250 ml 200ml 1.2L - -
Diet Coke 500 ml - - 330 ml -
Kinley Water 300 ml - 500 ml - -
The different pack sizes on which discount is given by the company are:
200 ml RGB1 CSD2
250 ml juice3
300 ml RGB CSD
600 ml Pet4 CSD
1200 ml Pet Juice
2000 ml Pet CSD
330 ml Can CSD
200 ml Tetra Pack Juice
1RGB Returnable Glass Bottles2CSD Concentrated Soft Drink3Juice Maaza4Pet Plastic bottle
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The below table shows the number of bottles in each case and brands available in different pack
sizes.
Pack Sizes No. of bottles per case Brands
200 ml RGB 24 Coke, Fanta, Limca, Thums up and Sprite
250 ml RGB 24 Maaza
300 ml RGB 24 Coke, Fanta, Limca, Thums up, Kinley Soda and Sprite
330 ml Can 24 Coke, Fanta, Limca, Thums up, Sprite and Diet Coke500 ml Pet 24 Diet Coke and Kinley Soda
600 ml Pet 24 Coke, Fanta, Limca, Thums up, Sprite and Maaza
200 ml Tetra Pack 27 Maaza
1.2 ltr Pet 12 Maaza
2 ltr Pet 9 Coke, Fanta, Limca, Thums up and Sprite
1.8 MANAGEMENT STYLE:
DONT
The company discourages such conduct and habits which are likely to undermine the way of
life in the organization.
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If it is mandatory for the company to adopt both the accounting standards i.e. UGAAP &
IGAAP, then the company should make sure there should not be violation of any of the
accounting standards in UGAAP as well as in IGAAP at any cost.
DOES
The company should make aware and impart knowledge to the employees regarding
clear cut bifurcation of standards used UGAAP & IGAAP.
The company should take necessary steps so that paper work should be as less as
possible, but this should not be at the cost of effectiveness in work.
NOTE:
1. UGAAP -- UNITED STATES STANDARDS GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
2. IGAAP -- INDIAN GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES
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2.1 INTRODUCTION:
Responsible for building and maintaining relationships with key customers in order to maximize
sales and ensure proper execution of pricing and promotional programs. Key Accounts are those
accounts which are effective to increase the sale of company. These key accounts have some
special agreements with company. There are pre decided sale volume agreement between
company and keys accounts. They have monopoly outlets to sale the HCCBPLs products. They
are not supposed to sale any other brand besides coca cola.
2.2 AN IMPORTANCE OF KEY ACCOUNTS
A lot of organizations appreciate the importance of Key Account Management but fail to
identify their KEY ACCOUNTS in a strategic fashion. This is simply because of a common
misconception that big (company size) is also key and that offering special treatment costs
more. In this series of articles, I will highlight the importance and steps for identification of key
accounts, an approach to segmentation and categorization of accounts, and steps for developing
a key accounts.
Key account helps companies gain the status of strategic rather than commodity supplier to their
major customers, guarding margins and improving security of retention.
2. KEY ACCOUNTS
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2.3 CUSTOMER SEGMENTATION APPROACH TO IDENTIFYING KEY ACCOUNTS
Identification of key accounts should be a quantitative exercise rather than a motional one based
on personal preferences. The recommended approach\is suggested below:
Step 1: Group our customers into three or more categories by sales. For instance
International Accounts, National Accounts and Regional Accounts.
Step 2: Include contribution margins and direct profit or any other financial matrices that
make sense for our business.
Step 3: Identifying key accounts based on the accounts that have the highest impact or
company financials.
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2.4 KEY ACCOUNTS STRATEGY
Most companies that 80 percent of their business comes from 20 percent of their customers. Yet
they often fail to have a specific key account strategy. All customers are not created equal rather
each customer has a unique set of needs that must be met to satisfy their business requirement.
Key account watch strategy is focused on increasing customer retention by identifying issues
that influence customer loyalty as well as potential vulnerability regarding your products and
services. We help uncover issues of cultural, knowledge and process that can form barriers to
your becoming a customer centric organization and also will assist your organization In
leveraging your loyalty initiatives within your key customers accounts.
Key account strategy has three key elements:
Implement Loyalty Partnering - Our loyalty partnering strategy helps you focus on
your key customers to monitor them for secure status the ability to withstand
competitive advances and the potential for being lost to the competition. The loyalty
partnering includes identifying every fact of the customer retention process and assigning
an account manager to each key account to serve as the customers advocate. In this role
they become thoroughly, knowledgeable of the customers business objectives,
organization, products, service as well as their competitors.
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Analysis, Conclusions and Recommendations Analyze both quantitative and
qualitative measurements to determine the quality of customer service provided. As a
result, your organization is better prepared to turn customers matrices information into
effective management action. Our loyalty professionals assist you in identifying
competitive advantages and deficiencies and than prioritizing and targeting opportunities
that lead to enhanced customer retention.
Loyalty Intelligence Report We develop a key account loyalty presentation that
highlights service provided, customer satisfaction with those services as well as
identification of key open issues and related corrective action plans.
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2.5 LIST OF KEY ACCOUNTS
Sr. No. Account Name Region/National Channel
Shared/Exclusiv
e
1 Checkmate Region Key A/C E&D Exclusive
2 Temptation Region Key A/C E&D Exclusive
3 Aromas Region Key A/C E&D Exclusive
4 Jungle Water Park Region Key A/C
Entertainme
nt Exclusive
5 Ganges Club Region Key A/C E&D Exclusive
6 Hotel Landmark Region Key A/C Horeca Shared
7 Upper Crust Region Key A/C E&D Exclusive
8 Adarsh Bakery Region Key A/C E&D Exclusive
9 Gurudev Cinema Region Key A/C Cineplex Exclusive
10 Mehfil Region Key A/C E&D Exclusive
11 Kool Kat Region Key A/C E&D Exclusive
12 Cawnpoore Club Region Key A/C E&D Exclusive
13 SGM Region Key A/C Grocery Exclusive
14 Rave @ Moti Region Key A/C Cineplex Exclusive
15 Rave 3 Entertainment Region Key A/C Cineplex Exclusive
16 Treat Region Key A/C E&D Exclusive
17 Vishal Mega Mart National Key A/C
Modern
Trade Shared
18
Reliance A-1 Plaza,
Unnao National Key A/C Travel Shared
19
Reliance A-1 Plaza,
Handia National Key A/C Travel Shared
20
Reliance A-1 Plaza,
Saini National Key A/C Travel Shared
21
BPCL In & Out, Tilak
Nagar National Key A/C
Modern
Trade Shared
22
BPCL In & Out,
Kakadeo National Key A/C
Modern
Trade Shared
23 Domino's National Key A/C E&D Exclusive
24
Domino's - Rave @
Moti National Key A/C E&D Exclusive
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25 Big Bazar (Kanpur) National Key A/C E&D Exclusive
2.6 RESPONSIBILITIES FOR KEYS
Build develop and maintain customer relationships with key accounts or channels. Direct
calls o customers, sells in initiatives such as new brands and packages, marketing
promotions. Resolve customer concerns and issues.
Develop and maintain strong working relationships with our customers and actively
participate in their business planning process.
Build an execute sales forecasting and ensure proper execution of pricing promotional
programs and Customer Marketing Agreements (CMA) or channel pricing. Assure in
outlet standards are executed per channel direction.
Develop and implement business plans.
Execute creative marketing promotions, develop and deliver sales presentations.
Maintain and assure implementation of ad calendar.
Communicate market conditions with internal sales force.
Acquire new customer information and advise business representatives.
Review business results with customers at pre-determined frequencies and agree on
business improvement initiatives.
Develop collaboratively with customer a trimester price /package plan that generates
desired results for both customer and Coke systems.
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sheets, govt. tax sure change. Transit risk no additional payment shall be made unless explicitly
agreed to in writing by the company
Goods shall means all the merchandise, commodity items and other property handed over to
the transporter for transporting on door delivery basis at the location at designated in the challlan
Intellectual property-shall means all the trademarks including but not limited to coca cola(R),
coke(R), fanta (R) sprite(R) thumps-up(R) limca (R) kinley (R) maaza (R) Citra(R),diet
coke(R)TM; there word mark(s) symbols, trade names(s) dynamic ribbon device and all its
related trademarks or any variations thereof whether owned by the company. USA or any its
subsidiaries.
One way trips- shall means loading of goods from the factory for transporting on door delivery
basis at the location designated in the challan.
Transshipment- means the transfer of goods form the 1 truck to another.
Truck-shall means the commercial vehicle as specified in annexure 2 attached her to be used
for carriage of goods.
Two way trips- shall means loading of goods from the factory for transporting on door delivery
basis of the location (unloading location) designated in the challan issued at such factory and
returning to the factory of delivery of goods loaded form the unloading location.
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Payments & accounting-
Subject to the terms and conditions of these presence, company shall pay the transporter
as per the freight rates specified in annexure 1
The freight shall be paid by an account payee cheque by the factory after receiving the
original fright bill proper acknowledgement of the consignee for receipt of goods and all
other proper such as copy after challan, statutory form etc. drivers copy of lorry receipt
(L/R) will be accepted as proof of receipts only in accept ional cases at the role discretion
of the company. the transporter need to submit such documentation of 1-15 of the months
by 22 of same month and of 16 to end of the month by 7 of next month payment shall be
made by the company within the 10 working days from the date of receipt of such clear
and complete documentation
Payment to the transporter shall be subject to deduction of tax at source, service tax and
all other applicable taxes and levies.
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Transshipment-
There shall be no transshipment of goods accept in case of accident / breakdown of
trucks. In which the transporter would obtain prior written permission of the company for
such transshipment. The transporter shall not be entitled to any additional payment on
account of such transshipment.
The transporter confirms that any damages to goods during transshipment shall be
deemed as shortage the provision of clause & shall come onto force.
Quality of trucks-
The transporter undertakes not each truck shall in addition to the specification laid out in
annexure 1meet the following quality requirement.
It shall always be free from any bad order or foul smell. the transporter will be safely
responsible for rejection of goods due to bad odor, foul smell or usage of cement/
fertilizers/pesticides/chemical trucks etc. and in such circumstances, the transporter shall
be liable for delivery of such rejected goods back at the factory and the company shall in
such event be not liable for making any payment to the transporter & shall in addition be
entitled to change for the transporter for the invoice value of such damaged goods.
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It shall not carry any protrusion/ sharp objects particularly at its internal body or where
the goods are to be stacked.
It shall always carry adequate undamaged tarpaulins for covering the top as well
as the bottom of the trucks.
Protection-
The transporter shall only be entitled to refuse the leaking/ breakage of cartoons into the
truck.
The transporter shall ensure proper loading & carrying of goods & tie the ropes with the
tarpaulins to prevent damage to the cartoons,
Failing which the company shall be entitled to recover all losses
suffered on account of such lapses from the transporter.
At the unloading location the transporter shall collect the receipt advice mentioning the
leakages, damages & shortage found on receipt & submit the same along with the
documents for the payments to the concerned factory.
SHORTAGE & DAMAGES-
It is agreed and understood that for shortage in receipt of goods based on the stock
receipt advice issued by the consignee the company shall recover the loss on amount of
short receipt of goods at the invoice value of the goods.
The company shall have the right to recover this amount by deducting the same from the
freight payment due or in such manner as it may due fit.
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The transporter shall be fully liable for any all the losses or damages suffered by the
transporter and or company due to negligence attributable to any at or omission of the
transporter.
The parties have agreed to settle losses on account of losses on receipt as under.
There would be a deduction if a maximum of
1-open/ leakage: 50% of liquid and no above deduction.
2-burst vehicle capacity: no. of bottles.
300-325 6 nos.
500-550 10 nos.
In case abnormal breakage more than one case each case will be handled separately &
mutually. In the abnormal breakage payment will be hold & balance payment will be
released on mutual understanding.
Transporter has to deposit all the burst /breakage/ leakage bottles at any factory in order
to claim breakage allowance.
In case short delivery the full value of shortage will be deduct from the transporter bill
(shortage amount will be calculated on invoice value.
Delays-
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The transporter shall ensure the recording of date and time of reporting to the consignee.
This shall be the basis for the damages for the delay changes.
In case of any delay in the delivering the goods the company reserves the right to make
the deduction from transporters bills at the rate of rs.200 pr day (DCM vehicle) and
Rs.350 per day (LP vehicle) for first to days of delays @ 300& 450 respectively per day
for everyday of delay thereafter.
Statutory Compliance-
The transporter shall be solely responsible for and undertake to comply with all the laws
regulation and requirement of any government and of many municipal or any other
authority having jurisdiction in any manner whatsoever in connection with its operations.
One transporter shall ensure that driver of a truck does not suffer from any disability,
whether legal or physical.
Indemnity-
The transporter shall indemnify and at all times keep the company indemnified against:-
Actions, proceedings, claims, demands on prosecutions. Whatsoever which may be
brought commenced or instituted against the company for the damages or loss or accident
caused to any third party arising out of or relating to the transportation of the goods &
also against all costs, damages, loses , expenses which the company may be required or
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caused to be paid or incurred in defending or settling the the same in consequence
thereof.
Confidentiality
All financial information exchanged between the parties here to shall be kept strictly
confidential and non of the parties shall utilize , dissolve or divulge any much
information to any person or persons, in any manner whether directly or indirectly,
whether for consideration otherwise except as required under law.
The freight rate shall remain valid for the term. The company shall entertain no request
for rate revision however it may opt to consider revision in case of any material change
in the diesel price of more than Rs.1.50 over Rs.34.37 per liter (base date being consider
as Jan. 2009) in kanpur. The company may evaluate the option of revision of the freight
the on the basis of mileage of 3.5 km. per liter of diesel in case of LP.vehicle & Rs. 5 km.
per liter in case of DCM vehicle or the basis of fixed formula as detailed here under
whichever is lower.
Increase in freight- distance *(P-PO)/ mileage)
Where distance= two way distance from factory
P=new fuel rate per liter
PO=old fuel rate per liter
Detention
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Detention changes for the trucks reporting at destination with the prescribed transit
time, shall be payable at the rate of Rs.300 per for load site of 300-350 case and Rs.450
for 351-600c/s for first 3 days & Rs.300 pr day load size of 300-350 c/s and Rs.450 for
351-600 c/s Rs.700 for 1000 c/s & above.
Thereafter in case companys distributors inability to unload the trucks within 24 hours
of the prescribed transit time. Detention changes shall be computed for the period
commencing 24 hours after the prescribed reporting time.
Freight Payable
Freight is a major cost head of the company. Every company puts an extra effort to reduce this
head to the best possible extent in order to reduce its cost of the product. The Company pays two
types of freight which includes freight inward and freight outward
Freight inward is the amount that is paid by the company for acquiring goods like raw material,
advertising goods or for bringing finished goods in the company. Like wise the company
purchases sugar, Carbon Di Oxide for manufacturing various types of beverages in its product
portfolio.
Freight Outward is the sum that is paid by the company for delivering goods by the transporters
at the distributors outlet. The freight rates are previously determined by the company with the
help of a contract/ agreement which is made to acquire services on a yearly basis.
The rates for various stations are negotiated and after the process of negotiation the agreement is
made or renewed for providing services. The agreement includes various terms and conditions
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which is applicable from when the truck is hired for a station till the time it does not reaches the
destination.
Like one of the condition is of detention which means that the truck should be unloaded by the
distributor within 24 hours of reaching the distributors outlet if the truck is detained for more
than 24 hours then the company has to pay extra charges to the transporter so as to remunerate
the labour employed by the transporter.
The amount paid in lieu of detention depends upon the load size the truck is taking to the
distributors outlet. Likewise if the load size of 300 350 cases (crates) the amount of detention
is Rs.300 for the first three days and Rs. 400 there onwards. If the load size is of 351 600 cases
then Rs. 450 for the first three days and Rs. 500 there onwards.
But the detention is not payable if the transporter writes in the invoice was detained for two
days. On the invoice the distributor gives the receiving about the detail of goods and he writes
the arrival time and departure time of the distributor. This in turn needs to be verified by the
Territory Manager who in turn clarifies with the sales executive and then only authorizes the
number of days the vehicle was detained.
The transporters bills have supporting invoices which are presented at the time when payment
claims are made. The bill gives the detail about the Good Receipt Note Number, Invoice
number, Invoice date, Name of the Distributor & station to which the vehicle was sent, vehicle
number, load size, amount as per the contract and over load charges if any.
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Over load charges means that the extra load than the actual capacity of the vehicle. The
transporter uses two types of vehicle one of which is DCM Toyota and other one is the normal
size of the truck. The maximum load that the DCM can take is 350 cases and the maximum of
550 cases for the other one. Anything above that would be considered for both as overload and
the company has to pay the overload charges.
Club load means if one vehicle at a time is taking goods to two stations. In this case of the
company has to pay Rs. 400 for extra station and the freight rate will be applicable of the station
whose fright rate is more amongst the two.
The part which takes the most attention while analyzing the freight bills of the company is when
the transporter gives the bills it has the supporting invoices along with it which one by one is
picked up. The analysis part is of carefully matching the goods receipt note number, invoice
number, invoice date, the station to which the goods have been invoiced, the quantity as stated
on the bill.
After this the invoice is seen through on which the distributor gives the receiving of filled
bottles. If the distributor writes actual quantity received as per the invoice then no deductions are
made and if the distributor writes quantity received in good condition, number of bottles short
(bottles not received), number of leakages received, number of bottles found open, number of
bursts received then it calls for deduction.
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There is actually a rebate slab in the contract which tells the maximum number of leakages,
bursts, open and breakages allowed depending upon the load size. Short bottles are not allowed
and if bottles are found short then the actual amount (glass and flavor) is deductible from the
total bill amount.
Particulars 251 - 350 351 - 550 550 - 700 700 1000Burst/Breakages
6 10 13 20
Leakage/ Open -
FULLS :
Fulls mean bottles with flavor like ThumsUp, Coca-Cola, and Sprite etc If a bottle is found
short then the amount of glass and flavor is deductible as there is no rebate allowed. Similar is in
the case if a bottle is found Burst but the difference in Shortage and Burst is that in burst some
relief is allowed to the transporter whereas in case of shortage no relief is allowed.In case of
leakage or open relief is allowed but the amount deductible is only of flavor and not of glass.
If a bottle of 200 ml is found short / burst then the amount deductible is Rs. 7 for the flavour and
Rs. 6.07 for the glass i.e. Rs 13.07. In case of 300 ml bottle is found short then amount
deductible for the glass is same Rs. 6.07 and Rs. 10 for the flavor i.e. Rs. 16.07.
In case of Cans, Pet Bottles whole amount is deductible. In some cases when the load is like of
700 which includes 200 ml, 300 ml, 330 ml, 1.2 ltr., 2 ltr. And the distributor writes leakages,
short, open, found while unloading in all the product varieties then the rebate that would be
allowed on will be on 200 ml bottles and rest whole amount would be deductible.
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PERFORMA OF INVOICE OR FULLS DESPATCH ADVICE
InvoiceNumber:0020/2007-08 Date:14/6/07
Name of Distributor: XYZ
Vehicle Number : Transporters Name :
S.No. Particulars Size Qty. Rate Amount
1. ThumsUp(24) 200 100
2. Limca (9) 2.0 25
3. Maaza(24) 250 75
TOTAL 200 ---------
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EMPTY:
In case of empty the Invoice is matched with Empty Receipt Advice (ERA) that the empty
bottles that is being sent by the distributor is being received in full or not. The slab mentioned
above is also applicable in this case. But only shortage and breakage of bottles is deductible.
Sometimes fulls that are being invoiced in the name of the distributors firm turn out to be less
when they are being unloaded in crates that means the bottle as well as the crates is received
short. In this case the amount that is deductible is of Crate, Glass and Flavor. The total sum of all
this turns out to Rs. 397 for 200 ml bottles and Rs. 420. The bifurcation is like Rs. 136 for the
plastic crate, Rs. 144 for the glass & Rs. 117 for the flavor.
The plastic crates are known as Cases on Loans, glass bottles are known as Returnable glass
bottles.
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PERFORMA OF EMPTY RECEIPT ADVICE
Name : No :
Date :
Vehicle Number : Transporters Name :
S.No. Particulars Size Qty. Rate Amount
1. Coca-Cola(24) 300 200
2. ThumsUp(24) 200 100
3. Fanta(24) 300 75
4. Maaza(24) 250 75
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TOTAL 450 -------
SELF CLAIMS :
Self claims are made by the distributor when it does not uses the company vehicle in order to
receive the goods instead of that it sends his own vehicle to the company and takes the goods on
his own risk. In this case no shortages, open bottles, burst or breakages or leakages can be
claimed.
The order that is received by the company from the distributor includes the freight and no extra
charges are made. In case of self claims the company gives the credit into the distributors
account in the tally but the total number of crates is matched.
The rate at which the self claims are settled is mutual settlement between the company and the
distributor. The rate at which the claim is settled is on a per case basis is far more than what it
actually pays to the company hired transporter while delivering the goods at the distributors
outlet.
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FAQ1 What is RTGS Facility?
RTGS System is a funds transfer mechanism where transfer of money takes place from one bank
to other on Real Time and on Gross basis (Transaction is settled on one to-one basis without
bunching with any other transaction)
FEATURES
This is fastest possible money transfer system through banking channel
The facility is being extended to more than 53000 bank branches across India
It is primarily for large value transactions. Minimum Amount to be remitted should be at
least Rs 1 lakh
RTGS cut off timings
4. REAL TIME GROSS SETTLEMENT (RTGS)
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Week Days Customer TransactionTimings
Inter- Bank TransactionTimings
Monday-Friday
9.00 hrs to 16.30 hrs 9.00 hrs to 18.00 hrs
Saturday 9.00 hrs to 12.30 hrs 9.00 hrs to 14.30 hrs
FAQ 2 How is RTGS different from Electronic Funds Transfer ( EFT) or
National Electronic Funds Transfer System ( NEFT) ?
EFT and NEFT are electronic funds transfer modes that operate on deferred net settlement
(DNS) basis which settle transactions in batches . In DNS, settlement takes place at a particular
point of time. E.g. in NEFT, settlement takes place 6 times a day during week days and 3 times a
day on Saturdays. Any transaction initiated after a designated settlement time would have to wait
till next designated settlement time
FAQ 3 What is the time taken for effecting funds transfer from one account to
another under RTGS?
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Under Normal Circumstances the beneficiary branches are expected to receive the funds in real
time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit
the beneficiarys account within 2 hours of receiving the funds transfer message
FAQ 4 What is the essential information that the remitting customer would have
to furnish to a bank for the remittance to be effected ?
Amount to be remitted
Account number to be Debited
Name of beneficiary bank
Name of beneficiary customer
Account number of beneficiary customer
IFSC Code of receiving branch
FAQ 5 How would one know the IFSC Code of the receiving branch ?
The beneficiary customer can obtain IFSC code from his branch. The IFSC code is available in
the cheque leaf.
FAQ 6 How is HCCB Using this benefits of RTGS ?
E- Payments HQ has started making payments to employees and vendors through RTGS/
EFT. A list of payments to be made is generated by Cola and loaded to Citi Banks Site.
Payments are verified and authorized online. Citi Bank sends an e-mail and payment advices
electronically to vendor/ employee intimating him/ her regarding credit of funds to the account.
Advantages
- Reduced Paper Work
- No mailing cost
- Timely Payments
- Approval of payments possible through Internet
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E- Collection- We have started collections through e-banking from our distributors/ customers
across India.
Advantages
- Reduced Time and Cost ( Cash Management Fee, Admin Charges)
- Faster turnaround Time
- Real Time information & data
- Reduced value at risk. ( avoided incidences of cheque bouncing)
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OBJECTIVES OF THE STUDY:
To study How the Finance Department of Hindustan Coca-Cola Beverage Pvt. Ltd.
To have a broad view of the companys financial policies.
To learn what points are considered while making reconciliation statement of key
accounts.
To learn what points are considered while processing freight claims of the transporters.
To ensure that processes are within policies and procedures of the company.
To ensure that the payment of the freight is made within the specified amount of time.
To study what formalities that have to be fulfilled while making purchases and while
making payments.
To ensure the transactions that occur are properly recorded and are recorded with the
specified procedures.
5. OBJECTIVES & SCOPE OF THE STUDY
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6.1 COMPETITOR ANALYSIS
Indian soft drinks market is predominantly controlled by two major multinationals namely Coca-
Cola and Pepsi, which have carefully stifled out the local competition here in India. Penetrating
tough Indian psychology and making their products feel accepted was the toughest challenge in
front of them. A brief overview of the soft drinks giant biggest competitor will help in gaining a
better insight of the soft drinks market in totality.
6.2 CURRENT MARKET POSITION
There has been much controversy and debate on the market share standings between the two
companies in the Indian subcontinent and a substantial and a consolidated figure has been
unavailable for reference. This is mainly because both companies had approached different
market research companies for making a study about the market share standings. Pepsi Co had
approached IMRB while Coca- Cola had entrusted this responsibility on ORG. According to the
survey done by IMRB Pepsis market share was found to have increased from 47% to 49% while
according to the study conducted by ORG Coca- Colas market share was claimed to be 59%.
6. REVIEW OF LITERATURE
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RESEARCH DESIGN:
What is Research Design?
Research design can be thought of as thestructure of research -- it is the "glue" that holds all of
the elements in a research project together. We often describe a design using a concise notation
that enables us to summarize a complex design structure efficiently. What are the "elements" that
a design includes? They are:
Observations or Measures
These are symbolized by an 'O' in design notation. An O can refer to a single measure (e.g., a
measure of body weight), a single instrument with multiple items (e.g., a 10-item self-esteem
scale), a complex multi-part instrument (e.g., a survey), or a whole battery of tests or measures
given out on one occasion. If you need to distinguish among specific measures, you can use
subscripts with the O, as in O1, O2, and so on.
6. CONCEPTUAL FRAMEWORK & METHODOLOGY
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Treatments or Programs
These are symbolized with an 'X' in design notations. The X can refer to a simple intervention
(e.g., a one-time surgical technique) or to a complex hodgepodge program (e.g., an employment
training program). Usually, a no-treatment control or comparison group has no symbol for the
treatment (some researchers use X+ and X- to indicate the treatment and control respectively).
As with observations, you can use subscripts to distinguish different programs or program
variations.
Groups
Each group in a design is given its own line in the design structure. if the design notation has
three lines, there are three groups in the design.
Assignment to Group
Assignment to group is designated by a letter at the beginning of each line (i.e., group) that
describes how the group was assigned. The major types of assignment are:
R= random assignment
N = nonequivalent groups
C = assignment by cutoff
Time
Time moves from left to right. Elements that are listed on the left occur before elements that arelisted on the right.
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RESEARCH HYPOTHESIS:
A non-stationary time series is said to be integrated in order one, often denoted by I(1), if the
time series is stationary after the first order differencing. The theory of cointegration applies to
the study of testing the efficiency of a futures market where S t is the spot price at time t and Ft-i is
futures price taken at i periods before the contracts matures at tome t and i the number of periods
to maturity.
If both St and Ft-i are I (1) the co integration of the vector (St, Ft-i) is a necessary condition for
market efficiency (Lai & Lai, 1991). Co integration of two prices series is a necessary condition
for market efficiency hypothesis which implies that the future price is an unbiased predictor of
the future spot price. If the two series are co integrated, St and Ft-i move together and will not
tend to drift apart over time.
First of all the series are tested for stationary using Augmented Dicky Fuller test (ADF). Here
the null hypothesis is
H0: @ = 0; (Unit root is equal to one or no stationary)
H1: @ 0
If the test statistics is less negative than the critical value, null is accepted and series is not
stationarity and vice versa.
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If series are found to be stationary after first differencing then series would be called I (1). After
this the Johansens Cointegration tests are conducted where the rank of the rank of the
coefficient matrix of Kth order VAR model (in our case the no of type of series are two therefore
the k=2).
H0: r = 0; (no Cointegration)
H1: r 0
If the value of trace statistics is less than the critical value, accept the null or no-cointegration.
And if the alternate is accepted then only the cointegration is significant and weak-form EMH
holds true.
TEST APPLIED FOR WEAK FORM HYPOTHESIS TESTING.
VAR MODEL(VECTOR AUTO REGRESSIVE MODEL)
UNIT ROUTE TEST
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VAR MODEL (VECTOR AUTO REGRESSIVE MODEL)
A reduced form of the autoregressive model with multi-variable time series is denoted
as follows, where yt is aj vector of endogenous variables, xt is a kvector of exogenous
variables, li and m i are matrixes of coefficients to be estimated, and ut is aj vector of
error terms orimpulses in the language of VAR:
Since VAR models do not distinguish the dependent variables from the independent
variables, the notation ofyt and xt is conventional. Under the assumption that ut is
neither autocorrelated nor correlated with any of the right-hand side variables, we can
appropriately estimate the coefficients by OLS. The number of lags m is again
determined by Akaike information criterion (AIC), or Schwarz criterion (SC).
UNIT ROUTE TEST
Let us denote the stochastic error term by ut, which has zero mean, constant variance,
and is not autocorrelated. Such an error term is called white noise. If xt = xt - xt-1
is stationary, where is the first-difference operator, the original series xt is called
integratedof order 1, and denoted byI(1). In general, if a time series has to be
differenced rtimes before it becomes stationary, it is integrated of orderr, orI(r).
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Consider the autoregressive model xt = rxt-1+ ut, where ut is white noise. Ifr=1,
then xt is a non-stationary time-series known as a random walk, and we say that xt has a
unit root. The model can be modified as xt = ( r- 1) xt-1+ ut = a xt-1+ ut, where
a = r- 1. The unit root is tested for x t under the null hypothesis that a = 0.
More generally, the unit root is tested for xt under the null hypothesis that a = 0 in the
time series model xt =a xt-1 + b t +g+ ut, where tis a time trend, andgis a drift
parameter (intercept). If the error term ut is auto correlated, then the model is modified
to include more lags:
The number of lagged difference terms to include m is determined empirically by
Akaike information criterion (AIC) or Schwarz criterion (SC). The unit root test for x t
under the null hypothesis a = 0 applied to the model (1) is called augmented
Dickey-Fuller (ADF) test. We can effectively apply the Phillips-Perron (PP) test to the
same model, when ut is auto correlated.
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RESEARCH METHODOLOGY:
Research is a diligent and systematic inquiry or investigation into a subject In order to discover
or revise facts, theories, and applications. Methodology is the system of methods followed by
particular discipline thus; research methodology is the way how we conduct our research.
Types of Research and The Research Design
The type of the research that will be used in this research is qualitative research. The writers
will get the data by analysis and interpretation of themes, words and also using cases as the base.
As for the research design, the descriptive research is being used in this research. Descriptive
research is a research which specific predictions is made, the percentage of units in a specified
population exhibiting a certain behavior is measured, the characteristics of relevant groups is
described, the degree to which marketing variables are associated is determined, and to
determine the perceptions of product characteristics.
Types of Data and Data Collection Methods
There are two types of data:
1. Primary Data
The primary data are data which are being collected by the researcher for the specific purpose of
answering the problem on hand. It is taken by the
observation during the research for four different times and interview with the owner who is also
the supervisor of the restaurant, captain, chef, and two cooks.
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2. Secondary Data
The secondary data is being obtained by the literature study and the articles from the internet.
and this is report has been prepared on the basis of the secondary data as made available by some
previous researchers.
Population and Sampling Design
Population is a group of people or objects from which the sample for statistical measurement is
going to be taken. Sample is a part of population which represents the characteristics of
population and suits with the researchs purpose.
The population and the sample of this research is the owner who is also the supervisor, captain,
chef, and two cooks of the Lucky City Restaurant. The sampling technique that will be used is
judgmental sampling in which the sample is being decided based on the judgments of the writers
in order to achieve the purpose of the research.
Variables
Variable is a symbol (like x or y) that is used in mathematical or logical expressions
to represent a variable quantity . There are two types of variable:
a. Dependent Variable
A dependent variable is a variable which is influenced by another variable.
The dependent variable of this research is food hygiene.
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b. Independent Variable
An independent variable is a variable which gives influence to another variable. The independent
variables of this research are storing, preparing, cooking, holding and service, cooling leftovers,
reheating, personal hygiene, dish and equipment cleanliness, and facility design.n urban areas,
the 8 to 10 percent of total sales of coke is through Area Market Contractors (AMC) who is
equivalent to big retailers and other outlets. In the village areas .coke uses so called distributors
for the sales. A striking feature in the logistics of Coke is that the AMCs supply material
directly using trucks but in case of inaccessibility to retail outlets due to location-constraints,
supply is made through auto rickshaws also.
The truck also gives the company permanent hoarding space on their sides and backs. Also, as
the industry competition is strong dealer push at the point of purchase is an important factor for
sales. The retailer often can play manufactures against each other to obtain favorable deals. To
avoid this situation coke incorporates a high degree of standardization with respect to the price
waterfall elements (the various types of discount offered), through there are differences in the
timing. Innovation in availability is something that coke can lay claim to. Coke introduced the
pushcart.
Coke is busy putting in place infrastructure to hit villages with its small 200 ml bottle, priced
aggressively at Rs. 5. With 200 ml it has larger market. It is exploding this market with low unit
price packs and pushing growth in home consumption through the PET bottles. Cokes game
plan is to have high volume, low margin business. The infrastructure costs will be high but they
have to rework their other costs coke credits and discounts and bring them down.
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6.1 ADVERTISING
Advertising has played an important role in the success of products since first newspaper ad in
1886, which read Coca-Cola Delicious! Refreshing! Exhilarating! Invigorating! The company
uses adver4tising to trigger desire as often and in as many ways as possible. Through out the
years, slogans or coca-cola have been memorable .Here are some highlights:
2000-Coca-Cola Enjoy
1993-Always Coca-Cola
1990- Cant Beat the Real Thing
1989-Cant Beat the Feeling
1986-Red,White and You
1982-Coke Is It
1976-Coke Adds Life
1971-Id Like to Buy the World a Coke
1969-Its the Real Thing
1963-Things Go Better With Coke
6. ADVERTISEMENT
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1959-Be really Refreshed
1944-Global High Sign
1942-Its the Real Thing
1936-Its the Refreshing thing to do
1929-The Pause That Refreshes.6.2 BRAND AMBESSDORS
Coca-Cola had signed on various celebrities including movie stars and cricket players such as
Karishma Kapoor, Hritik Roshan, Amir Khan, Akshay Kumar, Aishwerya Rai, Vivek
Oberai, Rani Mukherjee, Bipasha Basu, Riya Sen, Saurav Ganguly, Virendar Sehwag,
southern celebrities like Vijay in the past and today its brand ambassadors .
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7.1 MISSION
Our mission is to refresh the world in mind, body & spirit and to inspire moment of optimism
through our brand and our action.
Create consumer products, services & communications, customer service and bottling system
strategies, processes and tools in order to create competitive advantage & deliver superior value
to:
Consumers as a superior beverage experience.
Consumers as an opportunity to grow profits through the use of finished drink. Bottlers as an opportunity to grow profit and volume.
TCCC as a trade mark enhancement & positive economic value added.
Suppliers as an opportunity to make reasonable profits when creating real value added in
an environment of system-wide teamwork, flexible business system & continuous
improvement.
CCI Associates as superior career opportunity.
Indian society in the form of a contribution to economic and socio development.
7. MISSION AND LEADERSHIP
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7.2 LEADERSHIP
Theres never been a better time to be the part of The Coca-Cola Company. Our people are
dedicated to strengthening relationship with stake holders and communities everywhere.
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Mr. Isdell leads the Coca-Cola Company into the new century with a firm commitment to the
values and spirit of the worlds greatest brand. Under Isdells leadership, the Coca-Cola
Company is positioned for growth, guided by the mission to provide the branded beverage
that refresh people around the world, anywhere, anytime, everyday. By making key
decision making closer to the local markets, it has spurred innovation, accelerated growth and
fostered deeper connection to the consumer. Simply put they are closure than over to us.
A talented and highly experienced world wide management team coordinates the new, nimble
and entrepreneurial network .The local strategy enables them to listen to all the voices around
the world asking for beverages that span the entire spectrum of tastes and occasions.
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The company quotes what people want in the beverage is reflection of who they are, where
they live, who they work and play, and how they relax and recharge. Whether you are a
student in the United States enjoying a refreshing Coca-Cola, women in Italy taking a tea
break, a child in Peru is asking for a juice drink, or couple in Korea buying bottled water
after a run together, we are there for you.
The company is determined not only to make great drinks, but also to contribute to communities
around the world through the commitments to the education, health, wellness, and diversity.
It strives be good neighbour, consistently shaping its business decision to improve the quality of
life in the communities in which it does business. It is a special thing to have billions of friends
around the world, and the company never forgets it.
8. MANUFACTURING PROCESS
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We at Coca-Cola are committed to manufacture our products with utmost care and with quality
at top priority which makes it the world leader in the soft drink industry. Following is the
overview of the stringent
Processes adopted in manufacturing before our quality product reaches finally to our proud
consumers.
8.1 WATER TREATMENT:
We at HCCBPL Varanasi follow a batch treatment which includes coagulation & flocculation.
The method ensures disinfection and settling of all macro impurities and thereafter it pass to
sand, carbon filters to remove off odour ,off colour, off taste, and thus it is strictly bought in line
with the WHO requirements. We are also using state of art micron filtration process where the
water is filtered up to the extent of 1 micron before it is fed to the process.
This extensive treatment of water under strict monitoring and sampling for quality leads to pure
hygienic water with the highest quality meeting the Coca-Cola standards.
8.2 SYRUP PREPARATION:
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Coca-Cola uses highest quality of sugar which is controlled and ensured by its stringent pre-laid
standards, which serves as the strict criteria before acceptance of a lot. To ensure high quality of
syrup, it is subjected to hot treatment wherein it is given a contact time with hyflo and carbon at
elevated temperature. It is then passed through a filter press which removes the carbon particles
and other impurities before it declared fit for concentrate mixing. All this process takes place
under the strict vigil by the quality department which maintains the appropriate records of the
numerous tests carried out in the entire process which makes it a foolproof process.
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the simple syrup in
very strict hygienic condition to yield final syrup. The entire syrup manufacturing area is
maintained under a constant positive pressure which rules out the possibility of any external
particles entering into the process room.
8.3 CONTAINER WASHING:
Container has been identified as one of the major critical control point in the entire
manufacturing process & thats the reason that company has laid some of the very stringent and
foolproof systems which ensures Coca-Cola product to be of the highest quality and reflects our
commitment towards delivering the best in class product to the consumers.
The bottles received from the market are loaded on the conveyor by the uncasing machine and
the arrays of the unwashed bottles passes through the four pre-wash inspections stations which
ensures removal of rusty neck bottles, excessively dirty bottles, bottles carrying foreign matter,
foreign bottles. And thus the good bottles pass into the bottle washing machine which uses
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intensive mechanical and chemical processes to clean and disinfect the bottles thoroughly and
ensures the bottles to be ready for filling. However as an additional safety, there is again a post
wash inspection station comprising of 4 sub-stations, which ensures removal of the chip necked
bottles and suspected bottles from the lot. Thus the bottles are subjected to series of stringent
inspections before it is fed to the filler for filling.
8.4 MIXING, PROPORTIONING:
Proportioning is basically a process where ready syrup is diluted in a predetermined fixed
proportion with water and carbonated concentrate in to beverage conforming strictly to
companys norms and specifications. It is carried out by an Italian Machine-MOJONNIER.
8.5 FILLING & CROWNING:
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles through a
rotator machine named FILLER. The bottles are immediately crowned by crowner (adjacent to
the filler) and thereafter bottles passes through the date coding machine which enable the
consumer to be 100 percent sure of consuming a perfectly safe and fresh product.
8.6 FINAL INSPECTION:
After date coding, there is once again a final inspection station where light inspectors all low or
high filled bottles and permit only the saleable product to pass through for casing to the caser
machine.
8.7 MANAGING THE WASTE WATER:
Production lines maintain the waste water from the bottle washers, Syrup and Filler rooms.
Entire waste water generated is treated at Waste Water Treatment Plant and discharged through a
800 meters long pipeline specially laid to discharge the treated waste water away from inhabited
areas. Part of this water is being used for gardening purpose within the plant premises.
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8.8 MARKET & CUSTOMERS:
Once the finished product is ready, it is transported to the distribution centers and then to retail
outlets by way of route trucks. The consumer buys the soft drink from the retailer outlets. The
empty bottles are simultaneously collected by the distribution channels at the time of dispensing
the finished products.
8.9 SUPPLIERS AND OTHER BUSINESS PARTNER:
Other than water and concentrate, bottling operation require sugar, CO2, bottles, crates and other
miscellaneous materials. The Coca-Cola India division has a Supplier authorization program
where suppliers are authorized based on a defined criterion. Environmental considerations are
amongst the critical of these criterions.
8.10 EMPLOYEES, PLANTS & MACHINERY:
The no of total unit employees is approximately 113 & in summer season, which is a peak
season for sale of soft drinks, the plant works for three shift operation round the clock.
The overall education level of the employees is good and they obviously have a good expertise
in water treatment and purification processes. Extensive in-house training programs are
conducted to maintain the competency of the manpower in respective areas. The plant and
machinery consists of state of art bottling machinery and test equipment to get consistent quality
product at the optimum usage of raw materials. The plant also has an extensive quality test
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laboratory with equipment like spectrophotometer, density meter, micro lab etc. to conduct on
the spot tests at various stages of production.
A typical bottling line will consist of uncaser- pre wash inspection station conveyers-bottle
washer-post wash bottle inspection stationfiller-final light inspection station-conveyor-and
caser.
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Annexure 1 : Market Share of Coke and Pepsi
** The following shares were calculated with respect to only Pepsi and Coca- Cola. Other
companies were not brought under the purview of the research by the research organizations.
Market Share as pe
59%
Coca- Cola
51%
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Annexure 2 : Factors affecting soft drinks market
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Annexure 3 : Graph showing the sales generated by different pack sizes in the 1st quarter
of the year 2007
* Sales volume represents the sales of the products to HVOs only.
Annexure 4 : Graph showing discount given on different pack sizes in the 1st quarter of the
year 2007
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Discount
0
200000400000
600000
800000
1000000
1200000
1400000
1600000
1800000
200m
l
250m
l
300m
l
330ca
n
600m
l
1200
ml
2L
200Te
tra
Discount
11. Objectives of the Study
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To study How the Finance Department of Hindustan Coca-Cola
Beverages Company works.
To have a broad view of the companys financial policies.
To learn what points are considered while processing key accounts andfreight .
To ensure that processes are within policies and procedures of thecompany.
To ensure that the payment of the bills is made within the specified
amount of time.
To study what formalities those have to be fulfilled while making
purchases and while making payments.
To ensure the transactions that occur are properly recorded and are
recorded with the specified procedures.
To study the work process of direct route & indirect route.
10. Limitations of Study
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Every study has some limitations in terms of time, cost or human error etcI have tried my best
at my level to make it an original and a genuine one. Due to shortage of time it may be that the
expectations wouldnt have been met, still an attempt has been made in order to represent one of
the best reports.
This project report aims at describing the processes that are followed while reconciling the key
accounts of HCCBPL and freight payments to the transporters, receiving payments from the
distributors. I have tried to explain the actual process but the meaning that it has is not what it
actually is.
Some human errors would have been resulted while preparing this project report.
14. REFERENCES
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www.coca-colaindia.com.
www.cocacola.com.
www.yahoo.com.
www.wikipedia.com.
www.google.co.in.
Actual processes in which training was received havebeen defined.
With the help of the senior executives of the company
an attempt has been made in order to define the processes andprocedures followed.
http://www.yahoo.com/http://www.wikipedia.com/http://www.google.co.in/http://www.yahoo.com/http://www.wikipedia.com/http://www.google.co.in/