OF

The world’s most recognized trademark it is recognized by 94% of the world’s population

FOR

HINDUSTAN COCA-COLA BEVERAGES PVT. LTD.

Visakhapatanm.

UNDER GUIDANCE OF:Mrs.Madhuri

(Asst .Professor)

SUBMITTED BY:

Venkateshwarlu.NMBA (2010-12)

BABA INSTITUE OF TECHNOLOGY & SCIENCES

ACKNOWLEDGEMENT

1

I wou ld l i ke to thank my Mr.DhanRajSinghBisht , CHANNEL

MARKETING EXECUTIVE , Coca-Co la Ind ia , w i thout whom an

in ternsh ip w i th , H industan Coca-Co la Beverages Pr ivate L imi ted

(HCCBPL) wou ld not have been poss ib le . I am grate fu l to h im for

hav ing taken t ime o f f h i s busy schedu le and spoken to the

concerned person to get me th is in ternsh ip . I express my

grat i tude to the H industan Coca-Co la Beverages Pr ivate L imi ted

(HCCBPL) fo r hav ing g iven me an oppor tun i ty to work w i th them

and make the best out o f my in ternsh ip . I thank my gu ide ,

Mr.Suresh fo r hav ing t ra ined me and constant ly gu ided and

suppor ted me throughout the t ra in ing per iod . My hear t fe l t

g rat i tude a lso goes out to the s ta f f and employees at HCCBPL

for hav ing co-operated w i th me and gu ided me throughout the

one and a ha l f months o f my in ternsh ip per iod . I thank my

co l lege , BABA Ins t i tu te o f Techno logy sc ience for hav ing g iven

me th is oppor tun i ty to put to pract ice , the theoret ica l

knowledge that I imparted f rom the program. I thank the

in ternsh ip co-coord inator , Mrs.Madhuri (Ass t .Pro fessor ) fo r

hav ing gu ided and suppor ted me through the course o f the

in ternsh ip . I take th is oppor tun i ty to thank my parents and

f r iends who have been wi th me and o f fered emot iona l s t rength

and mora l suppor t .

2

DECELARATION

I Venkateshwar lu .N declare that this project report

t i t led “Sales Promotion ” i s an orig inal work done

by me under the guidance of Mrs. MADHURI

(ASST.PROFESSOR ) . I further declare that i t i s my

original work as a part of my academic course .

PLACE: VIZAG

DATE:

VENKATESHWARLU.N

3

EXECUTIVE SUMMARY

Coca-Co la , the product that has g iven the wor ld i t s best -known

taste was born in At lanta , Georg ia , on May 8 , 1886. Coca-Co la

Company i s the wor ld ’s lead ing manufacturer , marketer and

d is t r ibutor o f non-a lcoho l ic beverage concentrates and syrups ,

used to produce near ly 400 beverage brands . I t se l l s beverage

concentrates and syrups to bot t l ing and cann ing operators ,

d is t r ibutors , founta in reta i le rs and founta in who lesa lers . Coca-

Co la was f i r s t in t roduced by John Syth Pemberton , a pharmac is t ,

in the year 1886 in At lanta , Georg ia when he concocted

caramel -co lored syrup in a three- legged brass ket t le in h is

backyard . He f i r s t “d is t r ibuted” the product by car ry ing i t in a

jug down the s t reet to Jacob’s Pharmacy and customers bought

the dr ink for f ive cents a t the soda founta in . Carbonated water

was teamed wi th the new syrup, whether by acc ident or

o therwise , produc ing a dr ink that was proc la imed “de l i c ious and

re f resh ing” , a theme that cont inues to echo today wherever

Coca-Co la i s en joyed. Coca-Co la or ig inated as a soda founta in

beverage in 1886 se l l ing for f ive cents a g lass . Ear ly growth was

impress ive , but i t was on ly when a s t rong bot t l ing system

deve loped that Coca-Co la became the wor ld - famous brand i t i s

today . Coca-Co la was the lead ing so f t dr ink brand in Ind ia unt i l

1977, when i t le f t ra ther than revea l i t s fo rmula to the

Government and reduce i t s equ i ty s take as requ i red under the

Fore ign Regu lat ion Act (FERA) wh ich governed the operat ions o f

fo re ign companies in Ind ia . In the new l ibera l i zed and

deregu lated env i ronment in 1993, Coca-Co la made i t s re -ent ry

in to Ind ia through i t s 100% owned subs id iary , HCCBPL, the

Ind ian bot t l ing arm of the Coca-Co la Company. The main

ob ject ive o f th is s tudy l ies in unders tand ing the organ izat ion

and s tudy ing and unders tand ing the consumers ’ percept ion and

op in ion about the promot ions o f ferd by the Coca-Co la Company.

4

A reta i le r sampl ing invo lv ing 200 out le ts was conducted in a

span o f 10 days across major areas in order to g ive the products

the requ i red market ing push and to recogn ize the prospect ive

areas and the i r op in ion in order to deve lop and market the

o f fers in a bet ter way in the near fu ture . The methodo logy used

in s tudy ing and unders tand ing the perce ived v iews o f

consumers towards the sa les & promot ions was ‘SURVEYS’ . The

f ind ings o f the act iv i ty have been drawn out in fo rm of graphs

and suggest ions have been o f fered there f rom.

5

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION

1: INTRODUCTION……………………………………………….……09

1 .1: A br ief ins ight- The FMCG Industry in India………..

………..10

1 .2 : A b r i e f i n s igh t - The Beve rage Indus t ry i n Ind i a………………13

F igu re 1 : Beve rage Indus t ry i n Ind i a…………..…………………….13

CHAPTER 2: THE COCA-COLA COMPANY

2.1:

History…………………………………………………………………………..1

6

2.2: History of

Bott l ing………………………………………………………..18

Figure 2 Contour bott le des ign……………………………….

……………19

2.3: The Coca-Cola Bott le over the

Years………………………………22

Figure 3: The Coca-Cola Bott le over the Years………….

………….22

2.4: Product ion…………………………………………….

……………………….23

2.5 Brand Port fo l io…………………………………….

………………………….24

6

2.6: Mani festo for Growth……………….

……………………………………28

2.6 .1 : Va lues………………………………………..…………………………………

28

2.6 .2 : M iss ion…………………………….

…………………………………………..28

2.6 .3 : V is ion for Susta inab le

Growth……………………………………..29

F igure 4 : V is ion for Susta inab le Growth………………..………………30

CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES

PRIVATE LIMITED

3.1: About the

Company……………………………………………………….31

Figure 5: Locat ion of COBO, FOBO and Contract

packers…….33

3.2: Mani festo for Growth ……………….……………………….

………..33

3.2.1:Values…………………………………………….……………….

………….33

3.2.2:Vis ion for Susta inable Growth …………….. .

………………….34

3.2.3:Miss ion………………………………………………………………..

……..34

3.2.4: Qual i ty Po l icy …. .……………………….………………………..

…..35

3.3: Organizat ion Structure of Coca-Cola India…………….

…….36

Figure 6: Organizat ion Structure of Coca-Cola India…….

…….36

Figure 7: Organizat ion Structure of Coca-Cola India…….

…….37

7

3 .4: Organizat ion Structure of the Sales

Department inHCCBPL.38

Figure 8: Organizat ion Structure of the Sales Department……

38

3.5: Manufactur ing Unit of HCCBPL…………………..……………….

…39

Figure 9: Chain fo l lowed f rom Manufacture to Distr ibut ion…

39

3.6: Manufactur ing process at HCCBPL……..………..

……………..40

Figure 10: Manufactur ing process………………………..

…………………40

3.7: Bus iness P lan model at HCCBPL…………….……….

…………….42

Figure 11: Bus iness P lan model at HCCBPL……….

……………………42

3.8: Distr ibut ion Network……………..……………….

…………………….43

3.8.1: Distr ibut ion Routes……….…………………….

…………………….43

3.8.2: Distr ibut ion System…..…………………….

…………………………44

3.8.3: Departments involved in the Distr ibut ion process.

…….45

3.9: SWOT Analys is of HCCBPL……………………………..

………………46

3.9.1: Strengths…………………….…………………….

……………………….46

3.9.2: Weaknesses……………….………………….

……………………………47

3.9.3: Opportuni t ies…………..………………….

…………………………….48

8

3.9.4: Threats………………………………………….

…………………………..49

3.10: Compet i tors to HCCBPL……………….

………………………………50

CHAPTER 4: PRODUCTS………………………………..……………….

……………51

4.1: Packaging deta i ls…………………….…..………….. .

…………………55

CHAPTER 5: PROJECT:

5.1 SALES PROMOTION….………………………………………….……60

5.1.1: INTRODUCTION TO SALES PROMOTION……………….60

5.1.2: Consumer sa les promot ion techniques……….….…..62

5.2 Sales Promot ion Strategies……………………………….. .…. .64

5.3: Object ive of the Study………..………………………………….65

CHAPTER 6: Methodology

6.1: Research Methodology. .……….…………….……………….

….66

6.2: Data Analys is……………………..……………………………………

68

6.3: F indings……………………………………………………………………

70

6.4: Suggest ions…………..………..………………………………………

81

9

CHAPTER 7: CONCLUSION…………………………….

…………………………...82

BIBILOGRAPHY……………………….….…………………………..83

DATA SOURCES………………………..………………………………83

APPENDIX……………………………….……………………………..84

CHAPTER 1: INTRODUCTION

Coca-Co la , the product that has g iven the wor ld i t s best -known

taste was born in At lanta , Georg ia , on May 8 , 1886. Coca-Co la

Company i s the wor ld ’s lead ing manufacturer , marketer and

d is t r ibutor o f non-a lcoho l ic beverage concentrates and syrups ,

used to produce near ly 400 beverage brands . I t se l l s beverage

concentrates and syrups to bot t l ing and cann ing operators ,

d is t r ibutors , founta in reta i le rs and founta in who lesa lers . The

Company’s beverage products compr ises o f bot t led and canned

so f t dr inks as we l l as concentrates , syrups and not - ready- to -

dr ink powder products . In add i t ion to th is , i t a l so produces and

markets spor ts dr inks , tea and cof fee . The Coca-Co la Company

began bu i ld ing i t s g loba l network in the 1920s . Now operat ing in

more than 200 countr ies and produc ing near ly 400 brands , the

10

Coca-Co la system has success fu l ly app l ied a s imple formula on

a g loba l sca le : “Prov ide a moment o f re f reshment for a smal l

amount o f money- a b i l l i on t imes a day .”

The Coca-Co la Company and i t s network o f bot t le rs compr ise the

most soph is t i cated and pervas ive product ion and d is t r ibut ion

system in the wor ld . More than anyth ing , that system is

ded icated to peop le work ing long and hard to se l l the products

manufactured by the Company. Th is un ique wor ldwide system

has made The Coca-Co la Company the wor ld ’s premier so f t -dr ink

enterpr i se . F rom Boston to Be i j ing , f rom Montrea l to Moscow,

Coca-Co la , more than any other consumer product , has brought

p leasure to th i rs ty consumers around the g lobe. For more than

115 years , Coca-Co la has c reated a spec ia l moment o f p leasure

for hundreds o f mi l l ions o f peop le every day .

The Company a ims at increas ing shareowner va lue over t ime. I t

accompl i shes th is by work ing w i th i t s bus iness par tners to

de l iver

sat i s fact ion and va lue to consumers through a wor ldwide system

of super ior brands and serv ices , thus increas ing brand equ i ty on

a g loba l bas is . They a im at managing the i r bus iness we l l w i th

peop le who are s t rong ly commit ted to the Company va lues and

cu l ture and prov id ing an appropr ia te ly cont ro l led env i ronment ,

to meet bus iness goa ls and ob ject ives . The assoc iates o f th is

Company jo in t ly take respons ib i l i ty to ensure compl iance w i th

the f ramework o f po l i c ies and protect the Company’s assets and

resources wh i l s t l imi t ing bus iness r i sks .

1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN

INDIA

11

Fast Mov ing Consumer Goods (FMCG) , a l so known as Consumer

Packaged Goods (CPG) are products that have a qu ick turnover

and re la t ive ly low cost . Consumers genera l ly put less thought

in to the purchase o f FMCG than they do for o ther products .

The Ind ian FMCG indust ry w i tnessed s ign i f i cant changes through

the 1990s . Many p layers had been fac ing severe prob lems on

account o f increased compet i t ion f rom smal l and reg iona l

p layers and f rom s low growth across i t s var ious product

categor ies . As a resu l t , most o f the companies were forced to

revamp the i r product , market ing , d is t r ibut ion and customer

serv ice s t rateg ies to s t rengthen the i r pos i t ion in the market .

By the turn o f the 20th century , the face o f the Ind ian FMCG

indust ry had changed s ign i f i cant ly . Wi th the l ibera l i zat ion and

growth o f the Ind ian economy, the Ind ian customer w i tnessed an

increas ing exposure to new domest ic and fore ign products

through d i f fe rent media , such as te lev is ion and the In ternet .

Apar t f rom th is , soc ia l changes such as increase in the number

o f nuc lear fami l ies and the growing number o f work ing coup les

resu l t ing in increased spend ing power a lso cont r ibuted

to the increase in the Ind ian consumers ' persona l consumpt ion .

The rea l i zat ion o f the customer 's growing awareness and the

need to meet chang ing requ i rements and pre ferences on

account o f chang ing l i fes ty les requ i red the FMCG produc ing

companies to formulate customer-cent r ic s t ra teg ies . These

changes had a pos i t ive impact , lead ing to the rap id growth in

the FMCG indust ry . Increased ava i lab i l i ty o f re ta i l space , rap id

urban izat ion , and qua l i f ied manpower a lso boosted the growth

o f the organ ized reta i l ing sector .

HLL led the way in revo lut ion iz ing the product , market ,

d is t r ibut ion and serv ice formats o f the FMCG indust ry by

12

focus ing on rura l markets , d i rect d is t r ibut ion , c reat ing new

product , d is t r ibut ion and serv ice formats . The FMCG sector a lso

rece ived a boost by government led in i t ia t ives in the 2003

budget such as the set t ing up o f exc ise f ree zones in var ious

par ts o f the country that w i tnessed f i rms mov ing away f rom

outsourc ing to manufactur ing by invest ing in the zones .

Though the abso lute pro f i t made on FMCG products i s re la t ive ly

smal l , they genera l ly se l l in la rge numbers and so the

cumulat ive pro f i t on such products can be la rge . Un l ike some

indust r ies , such as automobi les , computers , and a i r l ines , FMCG

does not su f fer f rom mass layof fs every t ime the economy s tar ts

to d ip . A person may put o f f buy ing a car but he w i l l not put o f f

hav ing h is d inner .

Un l ike other economy sectors , FMCG share f loat in a s teady

manner i r respect ive o f g loba l market d ip , because they

genera l ly sat i s fy ra ther fundamenta l , as opposed to luxur ious

needs . The FMCG sector , wh ich i s growing at the rate o f 9% is

the four th la rgest sector in the Ind ian Economy and i s wor th

Rs .93000 crores . The main cont r ibutor , mak ing up 32% of the

sector , i s the South Ind ian reg ion . I t i s pred ic ted that in the

year 2010, the FMCG sector w i l l be wor th Rs .143000 crores . The

sector be ing one o f the b iggest sectors o f the Ind ian Economy

prov ides up to 4 mi l l ion jobs . (Source: HCCBPL, Month ly

C i rcu lar , March)

The FMCG sector cons is ts o f the fo l lowing categor ies :

Personal Care - Ora l care , Ha i r care , Wash (Soaps) ,

Cosmet ics and To i le t r ies , Deodorants and Per fumes, Paper

products (T issues , D iapers , San i tary products ) and Shoe care ;

13

the major p layers be ing; H industan Lever L imi ted , Godre j Soaps ,

Co lgate , Mar ico , Dabur and Procter & Gamble .

Household Care - Fabr ic wash (Laundry soaps and

synthet ic detergents ) , Househo ld c leaners

(D ish /Utens i l /F loor /To i le t c leaners ) , A i r f resheners , Insect ic ides

and Mosqu i to repe l lants , Meta l po l i sh and Furn i ture po l i sh ; the

major p layers be ing; H industan Lever L imi ted , N i rma and R icket

Co lman.

Branded and Packaged foods and beverages -

Hea l th beverages , Sof t dr inks , S tap les /Cerea ls , Bakery products

(B iscu i ts , Breads , Cakes) , Snack foods , Choco lates , I ce -creams,

Tea , Cof fee , Processed f ru i ts , P rocessed vegetab les , P rocessed

meat , Branded f lour , Bot t led water , Branded r ice , Branded

sugar , Ju ices ; the major p layers be ing; H industan Lever L imi ted ,

Nest le , Coca-Co la , Cadbury , Peps i and Dabur

Spir i ts and Tobacco ; the major p layers be ing; ITC ,

Godf rey , Ph i l ips and UB

1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF

INSIGHT

In Ind ia , beverages form an important par t o f the l ives o f

peop le . I t i s an indust ry , in wh ich the p layers constant ly

innovate , in order to come up wi th bet ter products to ga in more

consumers and sat i s fy the ex is t ing consumers .

14

B E V E R A G E S

A l c o h o l i c N o n - A l c o h o l i c

C a r b o n a t e d N o n - c a r b o n a t e d

C o l a N o n - C o l a N o n - C o l a

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage indust ry i s vast and there var ious ways o f

segment ing i t , so as to cater the r ight product to the r ight

person. The d i f fe rent ways o f segment ing i t a re as fo l lows:

Alcoho l ic , non-a lcoho l ic and spor ts beverages

Natura l and Synthet ic beverages

In -home consumpt ion and out o f home on premises

consumpt ion .

Age wise segmentat ion i .e . beverages for k ids , fo r

adu l ts and for sen ior c i t i zens

Segmentat ion based on the amount o f consumpt ion i .e .

h igh leve ls o f consumpt ion and low leve ls o f consumpt ion .

15

I f the behav iora l pat terns o f consumers in Ind ia are c lose ly

not iced , i t cou ld be observed that consumers perce ive

beverages in two d i f fe rent ways i .e . beverages are a luxury and

that beverages have to be consumed occas iona l ly . These two

percept ions are the b iggest cha l lenges faced by the beverage

indust ry . In order to leverage the beverage indust ry , i t i s

important to address th is i ssue so as to encourage regu lar

consumpt ion as we l l as and to make the indust ry more

a f fordab le .

Four s t rong s t rateg ic e lements to increase consumpt ion o f the

products o f the beverage indust ry in Ind ia are :

The qua l i ty and the cons is tency o f beverages needs to

be enhanced so that consumers are sat i s f ied and they en joy

consuming beverages .

The cred ib i l i ty and t rust needs to be bu i l t so that there

i s a very s t rong and sa fe fee l ing that the consumers have whi le

consuming the beverages .

Consumer educat ion i s a must to br ing out benef i t s o f

beverage consumpt ion whether in terms o f hea l th , tas te ,

re laxat ion ,

s t imulat ion , re f reshment , we l l -be ing or prest ige

re levant to the category .

Communicat ion shou ld be re levant and t rendy so that

consumers are ab le to f ind an appea l to go out , purchase and

consume.

The beverage market has s t i l l to ach ieve greater penetrat ion

and a lso a w ider spread o f d is t r ibut ion . I t i s important to look at

the ent i re beverage market , as a b ig oppor tun i ty , fo r brand and

16

sa les growth in turn to add up to the overa l l g rowth o f the food

and beverage indust ry in the economy.

CHAPTER 2: THE COCA-COLA COMPANY

2.1: HISTORY

J ohn Smyth Pemberton , a pharmac is t , f i r s t in t roduced Coca-Co la

in the year 1886 in At lanta , Georg ia when he concocted

caramel -co lored syrup in a three- legged brass ket t le in h is

backyard . He f i r s t “d is t r ibuted” the product by car ry ing i t in a

jug down the s t reet to Jacob’s Pharmacy and customers bought

the dr ink for f ive cents a t the soda founta in . Carbonated water

17

was teamed wi th the new syrup, whether by acc ident or

o therwise , produc ing a dr ink that was proc la imed “de l i c ious and

re f resh ing” , a theme that cont inues to echo today wherever

Coca-Co la i s en joyed.

Dr . Pemberton ’s par tner and book-keeper , F rank M. Rob inson,

suggested the name and penned “Coca-Co la” in the un ique

f lowing scr ip t that i s famous wor ldwide even today. He

suggested that “ the two Cs wou ld look we l l in adver t i s ing .” The

f i r s t newspaper ad for Coca-Co la soon appeared in The At lanta

Journa l , inv i t ing th i rs ty c i t i zens to t ry “ the new and popu lar

soda founta in dr ink .” Hand-pa inted o i l c lo th s igns read ing

“Coca-Co la” appeared on s tore awnings , w i th the suggest ions

“Dr ink” added to in form passersby that the new beverage was

for soda founta in re f reshment .

By the year 1886, sa les o f Coca-Co la averaged n ine dr inks per

day . The f i r s t year , Dr . Pemberton so ld 25 ga l lons o f syrup,

sh ipped in br ight red wooden kegs . Red has been a d is t inct ive

co lor assoc ia ted w i th the so f t dr ink ever s ince . For h is e f for ts ,

Dr . Pemberton grossed $50 and spent $73.96 on adver t i s ing . Dr .

Pemberton never rea l i zed the potent ia l o f the beverage he

created. He gradua l ly so ld por t ions o f h is

bus iness to var ious par tners and, jus t pr io r to h is death in

1888, so ld h is remain ing in terest in Coca-Co la to Asa G.

Cand ler , an ent repreneur

f rom At lanta . By the year 1891, Mr . Cand ler proceeded to buy

add i t iona l r ights and acqu i re complete ownersh ip and cont ro l o f

the Coca-Co la bus iness . Wi th in four years , h is merchand is ing

f la i r had he lped expand consumpt ion o f Coca-Co la to every

s tate and ter r i to ry a f ter wh ich he l iqu idated h is pharmaceut ica l

18

bus iness and focused h is fu l l a t tent ion on the so f t dr ink . Wi th

h is brother , John S . Cand ler , John Pemberton ’s fo rmer par tner

Frank Rob inson and two other assoc ia tes , Mr . Cand ler fo rmed a

Georg ia corporat ion named the Coca-Co la Company. The

t rademark “Coca-Co la ,” used in the marketp lace s ince 1886,

was reg is tered in the Un i ted States Patent Of f i ce on January 31 ,

1893.

The bus iness cont inued to grow, and in 1894, the f i r s t syrup

manufactur ing p lant outs ide At lanta was opened in Da l las ,

Texas . Others were opened in Ch icago, I l l ino is , and Los Ange les ,

Ca l i fo rn ia , the fo l lowing year . In 1895, three years a f ter The

Coca-Co la Company’s incorporat ion , Mr . Cand ler announced in

h is annua l repor t to share owners that “Coca-Co la i s now drunk

in every s tate and ter r i to ry in the Un i ted States .”

As demand for Coca-Co la increased, the Company qu ick ly

outgrew i ts fac i l i t ies . A new bu i ld ing erected in 1898 was the

f i r s t headquarters bu i ld ing devoted exc lus ive ly to the

product ion o f syrup and the management o f the bus iness . In the

year 1919, the Coca-Co la Company was so ld to a group o f

investors fo r $25 mi l l ion . Rober t W. Woodruf f became the

Pres ident o f the Company in the year 1923 and h is more than

s ix ty years o f leadersh ip took the bus iness to unsurpassed

he ights o f commerc ia l success , mak ing Coca-Co la one o f the

most recogn ized and va lued brands around the wor ld .

2.2: HISTORY OF BOTTLING

19

Coca-Co la or ig inated as a soda founta in beverage in 1886

se l l ing for f ive cents a g lass . Ear ly growth was impress ive , but

i t was on ly when a s t rong bot t l ing system deve loped that Coca-

Co la became the wor ld - famous brand i t i s today .

YEAR WISE HISTORY OF BOTTLING:

Year 1894: A modest start for a bold idea

In a candy s tore in V icksburg , M iss iss ipp i , b r i sk sa les o f the new

founta in beverage ca l led Coca-Co la impressed the s tore 's

owner , Joseph A . B iedenharn . He began bot t l ing Coca-Co la to

se l l , us ing a common g lass bot t le ca l led a Hutch inson.

B iedenharn sent a case to Asa Gr iggs Cand ler , who owned the

Company. Cand ler thanked h im but took no act ion . One o f h is

nephews a l ready had urged that Coca-Co la be bot t led , but

Cand ler focused on founta in sa les .

Year 1899: The f i rst bott l ing agreement

Two young at torneys f rom Chat tanooga, Tennessee be l ieved

they cou ld bu i ld a bus iness around bot t l ing Coca-Co la . In a

meet ing w i th Cand ler , Ben jamin F . Thomas and Joseph B .

Whi tehead obta ined exc lus ive r ights to bot t le Coca-Co la across

most o f the Un i ted States for a sum of one do l la r . A th i rd

Chat tanooga lawyer , John T . Lupton, soon jo ined the i r venture .

Years 1900-1909: Rapid growth

The three p ioneer bot t le rs d iv ided the country in to ter r i to r ies

and so ld

bot t l ing r ights to loca l ent repreneurs . The i r e f for ts were

boosted by major progress in bot t l ing techno logy , wh ich

20

improved e f f i c iency and product qua l i ty . By 1909, near ly 400

Coca-Co la bot t l ing p lants were operat ing , most o f them fami ly -

owned bus inesses . Some were open on ly dur ing hot -weather

months when demand was h igh .

Year 1916: Birth of the Contour Bott le

Bott le rs worr ied that Coca-Co la 's s t ra ight -s ided bot t le was

eas i ly confused wi th imi tators . A group represent ing the

Company and bot t le rs asked g lass manufacturers to o f fer ideas

for a d is t inct ive bot t le . A des ign f rom the Root G lass Company

o f Ter re Haute , Ind iana won enthus ias t ic approva l . The Contour

Bot t le became one o f the few packages ever granted t rademark

s tatus by the U .S . Patent Of f i ce . Today, i t i s one o f the most

recogn ized icons in the wor ld .

Figure 2 Contour bot t le des ign

In the 1920s: Bott l ing overtakes fountain sales

As the 1920s dawned; more than 1 ,000 Coca-Co la bot t le rs were

21

operat ing in the U .S . The i r ideas and zea l fue led s teady growth .

S ix -bot t le car tons were a huge h i t s tar t ing in 1923. A few years

la ter , open- top meta l coo lers became the forerunners o f

automated vend ing mach ines . By the end o f the 1920s , bot t le

sa les o f Coca-Co la exceeded founta in sa les .

In the 1920s and 1930s: International expansion

Led by Rober t W. Woodruf f , ch ie f execut ive o f f i cer and cha i rman

o f the Board , the Company began a major push to es tab l i sh

bot t l ing operat ions outs ide the U .S . P lants were opened in

France, Guatemala , Honduras , Mex ico , Be lg ium, I ta ly and South

Af r i ca . By the t ime Wor ld War I I began, Coca-Co la was be ing

bot t led in 44 countr ies .

In the 1940s: Post-war growth

Dur ing the war , 64 bot t l ing p lants were set up around the wor ld

to supp ly the t roops . Th is fo l lowed an urgent request fo r

bot t l ing equ ipment and mater ia ls f rom Genera l E isenhower 's

base in Nor th Af r i ca . Many o f these war - t ime p lants were la ter

conver ted to c iv i l ian use , permanent ly en larg ing the bot t l ing

system and acce lerat ing the growth o f the Company 's wor ldwide

bus iness .

In the 1950s: Packaging innovations

For the f i r s t t ime, consumers had cho ices o f Coca-Co la package

s ize and type- the t rad i t iona l 6 .5 ounce Contour Bot t le , o r la rger

serv ings

22

inc lud ing 10 , 12 and 26 ounce vers ions . Cans were a lso

in t roduced, becoming genera l ly ava i lab le in 1960.

In the 1960s: Introduct ion of new brands

Spr i te , Fanta , F resca and TAB jo ined brand Coca-Co la in the

1960s . Mr . P ibb and Mel lo Ye l lo were added in the 1970s . The

1980s brought d ie t Coke and Cherry Coke, fo l lowed by PowerAde

and Fru i top ia in the 1990s . Today scores o f o ther brands are

o f fered to meet consumer pre ferences in loca l markets around

the wor ld .

In the 1970s and 1980s: Consol idat ion to serve customers

Advancement in techno logy led to g loba l economy, re ta i l

customers o f The Coca-Co la Company merged and evo lved in to

in ternat iona l mega cha ins . Such customers requ i red a new

approach. In response, many smal l and medium-s ize bot t le rs

conso l idated to bet ter serve g iant in ternat iona l customers . The

Company encouraged and invested in a number o f bot t le r

conso l idat ions to assure that i t s la rgest bot t l ing par tners wou ld

have capac i ty to lead the system in work ing w i th g loba l

re ta i le rs .

In the 1990s: New and growing markets

23

Po l i t i ca l and economic changes opened vast markets that were

c losed or underdeve loped for decades . A f ter the fa l l o f the

Ber l in Wal l , the Company invested heav i ly to bu i ld p lants in

Eastern Europe. As the century c losed, more than $1.5 b i l l i on

was commit ted to new bot t l ing fac i l i t ies in A f r i ca .

21 s t Century: Coca-Cola today

The Coca-Co la bot t l ing system grew up wi th roots deep ly

p lanted in loca l communi t ies . Th is her i tage serves the Company

we l l today as consumers seek brands that honor loca l ident i ty

and the d is t inct iveness o f loca l markets . As was t rue a century

ago, s t rong loca l ly based re la t ionsh ips between Coca-Co la

bot t le rs , customers and communi t ies are the foundat ion on

which the ent i re bus iness grows.

2.3 The Coca-Cola Bottle over the Years

24

Figure 3: The Coca-Cola Bott le over the Years

2.4 Production

Ingredients

Carbonated water

Sugar (sucrose  or  h igh- f ructose corn

syrup  depend ing on country o f o r ig in )

Caf fe ine

Phosphor ic ac id

Caramel co lor (E150d)

Natura l f lavor ings

25

A can o f Coke (12 f l ounces /355  ml ) has 39  grams o f

carbohydrates (a l l f rom sugar , approx imate ly 10

teaspoons) ,50  mg o f sod ium, 0  grams fa t , 0  grams potass ium,

and 140 ca lor ies .

Formula of natural f lavorings

Coca-Co la formula :

The exact fo rmula o f Coca-Co la 's natura l f lavor ings (but not i t s

o ther ingred ients , wh ich are l i s ted on the s ide o f the bot t le or

can) i s a   t rade secret . The or ig ina l copy o f the formula was he ld

in  SunTrust Bank 's main vau l t in At lanta for 86 years . I t s

predecessor , the Trust Company, was the  underwr i ter   fo r the

Coca-Co la Company 's   in i t ia l pub l i c o f fer ing   in 1919. On

December 8 , 2011, the or ig ina l secret fo rmula was moved f rom

the vau l t a t SunTrust Banks to a new vau l t conta in ing the

formula wh ich w i l l be on d isp lay for v i s i to rs to i t s Wor ld o f

Coca-Co la  museum in downtown At lanta .

A popu lar myth s tates that on ly two execut ives have access to

the formula , w i th each execut ive hav ing on ly ha l f the

formula  The t ruth i s that wh i le Coca-Co la does have a ru le

res t r i c t ing access to on ly two

execut ives , each knows the ent i re formula and others , in

add i t ion to the prescr ibed duo, have known the formulat ion

process .

On February 11 , 2011,   I ra G lass   revea led on h is  PR I   rad io

show,  Th is Amer ican L i fe , that the secret fo rmula to Coca-Co la

had been uncovered in a 1979 newspaper . The formula found

bas ica l ly matched the formula found in Pemberton 's d iary .

26

Logo design

The famous Coca-Co la logo was created by John Pemberton 's

bookkeeper ,  F rank Mason Rob inson, in 1885.Rob inson came up

wi th the name and chose the logo 's d is t inct ive curs ive scr ip t .

The   typeface  used, known as  Spencer ian scr ip t , was deve loped

in the mid-19th century and was the dominant form of fo rmal

handwr i t ing in the Un i ted States dur ing that per iod .

Rob inson a lso p layed a s ign i f i cant ro le in ear ly

Coca-Co la adver t i s ing . H is promot iona l suggest ions to

Pemberton inc luded g iv ing away thousands o f f ree dr ink

coupons and p las ter ing the c i ty o f  At lanta  w i th pub l ic i ty

banners and  s t reetcar  s igns .

2.5 Brand Portfolio:

This is a list of variants of Coca-Cola introduced around the world. In addition to

the caffeine-free version of the original, additional fruit flavors have been

included over the years. Not included here are versions of Diet Coke and Coca-

Cola Zero; variant versions of those no-calorie colas can be found at their

respective articles.

27

NameLaunched

Discontinued

Notes Picture

Coca-Cola 1886The original version of Coca-Cola.

Caffeine-Free Coca-Cola

1983The caffeine free version of Coca-Cola.

Coca-Cola Cherry

1985

Was available in Canada starting in 1996. Called "Cherry Coca-Cola (Cherry Coke)" in North America until 2006.

New Coke/"Coca-Cola II"

1985 2002Still available in Yap and American Samoa

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Coca-Cola with Lemon

2001 2005

Available in:

Australia, American Samoa,

Austria, Belgium, Brazil, China,

Denmark,Federation of Bosnia

and Herzegovina, Finland,

France, Germany, Hong Kong,

Iceland, Korea, Luxembourg,

Macau, Malaysia, Mongolia,

Netherlands, New Caledonia,

New Zealand, Norway, Réunion,

Singapore, Spain, Switzerland,

Taiwan, Tunisia, United Kingdom,

United States, and West Bank-

Gaza

Coca-Cola Vanilla

2002; 2007

2005

Available in: Austria, Australia, China, Finland, Germany, Hong Kong, New Zealand, Malaysia, Sweden, United Kingdom and United States. It was reintroduced in June 2007 by popular demand.

Coca-Cola with Lime

2005

Available in Belgium, Netherlands, Singapore, Canada, the United Kingdom, and the United States.

Coca-Cola Raspberry

June 2005

End of 2005

Was only available in New Zealand. Currently available in the United States in Coca-Cola Freestyle fountain since 2009.

29

Coca-Cola Black Cherry Vanilla

2006Middle of 2007

Was replaced by Vanilla Coke in June 2007

Coca-Cola Blāk

2006Beginning of 2008

Only available in the United States, France, Canada, Czech Republic, Bosnia and Herzegovina, Bulgaria and Lithuania

Coca-Cola Citra

2006Only available in Bosnia and Herzegovina, New Zealand and Japan.

Coca-Cola Orange

2007

Was available in the United Kingdom and Gibraltar for a limited time. In Germany, Austria and Switzerland it's sold under the label Mezzo Mix. Currently available in Coca-Cola Freestyle fountain outlets in the United States since 2009.

30

2.6: MANIFESTO FOR GROWTH

2.6.1: VALUES:

Coca-Co la i s gu ided by shared va lues that both the employees

as ind iv idua ls and the Company wi l l l i ve by ; the va lues be ing:

LEADERSHIP: The courage to shape a bet ter fu ture

PASSION: Commit ted in hear t and mind

INTEGRITY: Be rea l

ACCOUNTABILITY: I f i t i s to be , i t ’ s up to me

COLLABORATION: Leverage co l lect ive gen ius

INNOVATION: Seek , imagine , c reate , de l ight

QUALITY: What we do , we do we l l

2.6.2: MISSION

To Ref resh the Wor ld . . . In body, mind, and sp i r i t

To Insp i re Moments o f Opt imism . . . Through our brands

and our act ions

To Create Va lue and Make a D i f fe rence . . . Everywhere

we engage.

31

2.6.3: VISION FOR SUSTAINABLE GROWTH

PROFIT: Max imiz ing return to shareowners wh i le be ing

mindfu l o f our overa l l respons ib i l i t ies .

PEOPLE: Be ing a great p lace to work where peop le are

insp i red to be the best they can be .

PORTFOLIO: Br ing ing to the wor ld a por t fo l io o f

beverage brands that ant ic ipate and sat i s fy peop les ’ Des i res

and needs .

PARTNERS: Nur tur ing a w inn ing network o f par tners

and bu i ld ing mutua l loya l ty .

PLANET: Be ing a respons ib le g loba l c i t i zen that makes

a d i f fe rence.

32

FIGURE 4: V IS ION FOR SUSTAINABLE GROWTH

33

CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES

PRIVATE LIMITED (HCCBPL)

3.1: ABOUT THE COMPANY

Coca-Co la was the lead ing so f t dr ink brand in Ind ia unt i l 1977,

when i t le f t ra ther than revea l i t s fo rmula to the Government

and reduce i t s equ i ty s take as requ i red under the Fore ign

Regu lat ion Act (FERA) wh ich governed the operat ions o f fo re ign

companies in Ind ia . Coca-Co la re -entered the Ind ian market on

26 t h October 1993 a f ter a gap o f 16 years , w i th i t s launch in

Agra . An agreement w i th the Par le Group gave the Company

ins tant ownersh ip o f the top so f t dr ink brands o f the nat ion .

Wi th access to 53 o f Par le ’s p lants and a we l l set bot t l ing

network , an exce l lent base for rap id in t roduct ion o f the

Company’s In ternat iona l brands was formed. The Coca-Co la

Company acqu i red so f t dr ink brands l i ke Thumps Up, Go ldspot ,

L imca, Maaza, wh ich were f loated by Par le , as these products

had ach ieved a s t rong consumer base and formed a s t rong

brand image in Ind ian market dur ing the re -ent ry o f Coca-Co la

in 1993.Thus these products became a par t o f range o f products

o f the Coca-Co la Company.

In the new l ibera l i zed and deregu lated env i ronment in 1993,

Coca-Co la made i t s re -ent ry in to Ind ia through i t s 100% owned

subs id iary , HCCBPL, the Ind ian bot t l ing arm of the Coca-Co la

Company. However , th is was based on numerous commitments

and s t ipu lat ions wh ich the Company agreed to implement in due

course . One such major commitment was that , the H industan

Coca-Co la Ho ld ings wou ld d ivest 49% of i t s shareho ld ing in

favor o f res ident shareho lders by June 2002.

34

Coca-Co la i s made up o f 7000 loca l employees , 500 managers ,

over 60 manufactur ing locat ions , 27 Company Owned Bot t l ing

Operat ions (COBO) , 17 Franch isee Owned Bot t l ing Operat ions

(FOBO) and a network o f 29 Contract Packers that fac i l i ta te the

manufacture process o f a range o f products for the company. I t

a l so has a suppor t ing d is t r ibut ion network cons is t ing o f 700,000

reta i l out le ts and 8000 d is t r ibutors . A lmost a l l goods and

serv ices requ i red to cater to the Ind ian market are made

loca l ly , w i th he lp o f techno logy and sk i l l s w i th in the Company.

The complex i ty o f the Ind ian market i s re f lected in the

d is t r ibut ion f leet wh ich inc ludes d i f fe rent modes o f d is t r ibut ion ,

f rom 10- tonne t rucks to open-bay three whee lers that can

nav igate through narrow a l leyways o f Ind ian c i t ies and

t rademarked t r i cyc les and pushcar ts .

“Th ink loca l , ac t loca l” , i s the mantra that Coca-Co la fo l lows ,

w i th punch l ines l i ke “L i fe ho to a is i ” fo r Urban Ind ia and

“Thanda Mat lab Coca-Co la” for Rura l Ind ia . Th is resu l ted in a

37% growth rate in rura l Ind ia v isa -v ie 24% growth seen in

urban Ind ia . Between 2001 and 2003, the per cap i ta

consumpt ion o f co ld dr inks doub led due to the launch o f the

new packag ing o f 200 ml re turnab le g lass bot t les wh ich were

made ava i lab le a t a pr ice o f Rs .5 per bot t le . Th is new market

accounted for over 80% of Ind ia ’s new Coca-Co la dr inkers . At

Coca-Co la , they have a long s tand ing be l ie f that everyone who

touches the i r bus iness shou ld benef i t , thereby induc ing them to

upho ld these va lues , enab l ing the Company to ach ieve success ,

recogn i t ion and loya l ty wor ldwide .

35

FIGURE 5: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING

IN INDIA

3.2: MANIFESTO FOR GROWTH

3.2.1: VALUES

The va lues that the employees in the Company are expected to

keep up to and work by regu lar ly are as fo l lows:

LEADERSHIP: To take an in i t ia t ive and lead, mot ivate

and dr ive the team wi th energy and zea l , to de l iver outs tand ing

resu l ts .

INNOVATION: To cont inuous ly s t r ive for progress and

reach the next leve l o f exce l lence in everyth ing we do .

36

PASSION: To be deep ly commit ted and d isp lay dr ive and

energy in the quest to de l iver outs tand ing per formance.

TEAMWORK: To un i te for greater s t rength and work

co l lec t ive ly as a group towards the ach ievement o f common

goa ls .

OWNERSHIP: To th ink and act l i ke owners at a l l leve ls ;

to have dec is ions taken at the lowest appropr ia te leve l .

ACCOUNTABILITY: To be ind iv idua l ly and t ransparent ly

accountab le to our co l leagues for de l iver ing agreed targets and

goa ls .

3.2.2: VISION FOR SUSTAINABLE GROWTH

To prov ide except iona l s t ra teg ic leadersh ip in the Coca-Co la

Ind ia System-resu l t ing in consumer and customer pre ference

and loya l ty , through Coca-Co la ’s commitment to them, and in a

h igh ly pro f i tab le Coca-Co la Corporate branded beverages

system.

3.2.3: MISSION

To create consumer products , serv ices and communicat ions ,

customer serv ice and bot t l ing system st rateg ies , processes and

too ls in order to c reate compet i t ive advantage and de l iver

super ior va lue to ;

Consumers as a super ior beverage exper ience

37

Consumers as an oppor tun i ty to grow pro f i t s through

the use o f f in i shed dr inks

Bott le rs as an oppor tun i ty to grow pro f i t s in vo lumes

Bott le rs as a t rademark enhancement and pos i t ive

economic va lue added

Suppl ie rs as an oppor tun i ty to make reasonab le pro f i t s

when creat ing rea l va lue-added in an env i ronment o f sys tem-

wide team work , f lex ib le bus iness system and cont inuous

improvement

Ind ian soc ie ty in the form of a cont r ibut ion to

economic and soc ia l deve lopment .

3.2.4: QUALITY POLICY

“To ensure customer de l ight , we commit to qua l i ty in our

thoughts , deeds and act ions by cont inua l ly improv ing our

processes…Every t ime.”

38

3.3: ORGANIZATION STRUCTURE OF COCA-COLA

IN INDIA

39

Regional Vice President (North)

Regional Vice President (Central)

FIGURE 6: ORGANIZATION STRUCTURE IN COCA-COLA, IN IDA

40

Region VicePresident

AGM/AOD Unit 1

AGM/AOD Unit 2

AGM/AODUnit 3

AGM/AODUnit4

Region Finance

Region Human Resource

Region Customer Service

Region External Affairs

Region Cold Drink

Region Legal

Region BSG

Region Director/Manager Market Execution

Region Capability Management Region Channel

F IGURE 7: ORGANIZATION STRUCTURE IN COCA-COLA,

INDIA

3.4: ORGANIZATION STRUCTURE OF THE SALES

DEPARTMENT IN HCCBPL:

41

Finance

Manager

M a n u f a c t u r i n g P l a n t , B i d a d i

S a l e s a n d D i s t r i b u t i o n O p e r a t i o n s

D i s t r i b u t o r s

O u t l e t s

O u t l e t s

FIGURE 8: ORGANIZATION STRUCTURE OF THE SALES

DEPARTMENT

3.5: MANUFACTURING UNIT OF HCCBPL

The manufactur ing un i t o f HCCBPL, s i tuated at B idad i , i s the

th i rd la rgest p lant and one o f the bot t l ing operat ions owned by

the company. The P lant has one PET l ine wh ich has the capac i ty

o f y ie ld ing 209 bot t les , per minute , two RGB (Returnab le g lass

bot t les ) l ines wh ich y ie lds 600 bot t les per minute each and one

Ju ice l ine wh ich y ie ld 155 bot t les per minute . I t caters to the

who le o f South Karnataka through a network o f more than 80

d is t r ibutors . There are three depots in Banga lore ; Nor th Depot ,

East Depot and Mega Depot .

FIGURE 9: CHAIN FOLLOWED FROM MANUFACTURE TO

DISTRIBUTION

42

3.6: MANUFACTURING PROCESS AT HCCBPL

F IGURE 10: MANUFACTURING PROCESS

The manufactur ing o f the products o f Coca-Co la invo lves the

fo l lowing s teps :

Water i s rece ived f rom the R iver Cauvery and i t passes

through the water t reatment p lant , fu r ther pass ing through the

sand f i l te r and the act ivated carbon f i l te r , so as to a t ta in pure

c leansed water .

43

In the syrup room, the concentrate rece ived f rom

another bot t l ing p lant s i tuated at Pune, i s b lended wi th the

sugar syrup

Once both the water and the f ina l syrup are ready,

they are both mixed together and sent to the carbonator sect ion

where Carbon D iox ide i s added to the mixture to form the f ina l

product .

On the other hand, s imul taneous ly , the returnab le

g lass bot t les are depa l le t i zed , inspected and washed for the

purpose o f f i l l ing in the f ina l product in i t . Th is s tep does not

take p lace in the PET bot t le l ine as the bot t les once used are

d isposed.

The product i s f ina l ly f i l l ed in the bot t les , c rowned ( in

case o f RGB) / capped ( in case o f PET bot t les ) , labe led and cased

in order to be sent in to the warehouse for d is t r ibut ion .

44

Coca-Cola India division, Gurgaon

Regional BottlersCOBO/FOBO

Customers

Manufactures Concentrate, Beverage base and Syrup

Manufactures finished Bottles/Cans/Fountain Syrup

Consumers

3.7: BUSINESS PLAN MODEL AT HCCBPL

F IGURE 11: BUSINESS PLAN MODEL

45

3.8: DISTRIBUTION NETWORK

HCCBPL has a w ide and we l l managed network o f sa lesmen

appo inted for tak ing up the respons ib i l i ty o f d is t r ibut ion o f

products to d iverse par ts o f the c i t ies . The d is t r ibut ion channe ls

are const ructed in such a way that the demand o f customers i s

fu l f i l l ed at the r ight p lace and the r ight t ime when i t i s needed

by them.

A typ ica l d is t r ibut ion cha in at HCCBPL wou ld be:

Production - - - P lant Warehouse - - - Depot Warehouse - - -

Distr ibution Warehouse - - - Retai l Stock - - - Retai l Shelf - - -

Consumer

The customers o f the Company are d iv ided in to d i f fe rent

categor ies and d i f fe rent routes , and every sa lesman i s ass igned

to one par t icu lar route , wh ich i s to be fo l lowed by h im on a

da i ly bas is . A deta i led and we l l o rgan ized d is t r ibut ion system

contr ibutes to the e f f i c iency o f the sa lesmen. I t a l so leads to

low costs , h igher sa les and h igher e f f i c iency thereby lead ing to

h igher pro f i t s to the f i rm.

3.8.1: DISTRIBUTION ROUTES

The var ious routes formulated by HCCBPL for d is t r ibut ion o f

products are as fo l lows:

46

Key Accounts: The customers in th is category

co l lec t ive ly cont r ibute a la rge chunk o f the to ta l sa les o f the

Company. I t bas ica l ly cons is ts o f o rgan izat ions that buy la rge

quant i t ies o f a product in one s ing le t ransact ion . The Company

prov ides goods to these customers on cred i t , payments be ing

made by them af ter a cer ta in per iod o f t ime i .e . e i ther a month

o f ha l f a month .

Examples: C lubs , f ine d ine res taurants , hote ls , Corporate

houses etc .

Future Consumption: Th is route cons is ts o f out le ts

o f Coca-Co la products , where in a cons iderab le amount o f s tock

i s kept in order to use for fu ture consumpt ion . The s tock does

not exhaust w i th in a day or two, ins tead as and when requ i red

s tocks are s tacked up by them so as to avo id shor tage or non-

ava i lab i l i ty o f the product .

Examples: Departmenta l s tores , Super markets e tc .

Immediate Consumption: The out le ts in th is route

are those which requ i re s tocks on a da i ly bas is . The s tocks o f

products in these out le ts are not s tored for fu ture use ins tead,

are exhausted on the same day and might run a l i t t le in to the

next day i .e . the products are consumed at a fas t pace .

Examples: Smal l s i zed bars and restaurants , educat iona l

ins t i tu t ions etc .

General : Under th is route , a l l the out le ts that come

in a par t icu lar area or an area a long wi th i t s ne ighbor ing areas

are catered to . The consumpt ion per iod i s not taken in to

cons iderat ion in th is par t icu lar route .

3.8.2: DISTRIBUTION SYSTEM

47

Direct distr ibution: In d i rect d is t r ibut ion , the

bot t l ing un i t o r the bot t le r par tner has d i rect cont ro l over the

act iv i t ies o f sa les , de l ivery , and merchand is ing and loca l

account management at the s tore leve l .

Indirect distr ibution: In ind i rect d is t r ibut ion , an

organ izat ion which i s not par t o f the Coca-Co la system has

cont ro l on one or more o f the d is t r ibut ion e lements (Sa les ,

de l ivery , merchand is ing and loca l account management)

Merchandis ing: Merchand is ing means communicat ion

w i th the consumer at the po int o f purchase to convey product

benef i t , va lue and Qua l i ty . Sa les peop le and de l ivery personne l

both have th is respons ib i l i ty . In cer ta in locat ions spec ia l teams

who go in to bus iness locat ions to spec i f i ca l ly merchand ise our

products .

3.8.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION

PROCESS

The D is t r ibut ion process main ly cons is ts o f three depar tments :

Distr ibution Department: I t appo ints d is t r ibutors and

estab l i shes a d is t r ibut ion network , processes approved sa le

orders and prepares invo ices , a r ranges log is t i cs and sh ip

products , co -ord inates w i th d is t r ibutors fo r co l lec t ions and

moni tors d is t r ibut ion s tocks and the i r set -up .

Finance Department: I t checks c red i t l imi ts and

approves sa les orders in compl iance w i th the c red i t po l i cy

fo l lowed by the f i rm, records co l lec t ions f rom d is t r ibutors ,

per iod ica l ly reconc i les outs tand ing ba lances f rom d is t r ibutors ,

obta ins ba lance conf i rmat ion f rom d is t r ibutors and fo l lows up

outs tand ing ba lances .

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Shipping or Warehousing Department: I t

d i spatches goods as per approved by order , ensures that s tocks

are d ispatched on a F IFO bas is , ensures phys ica l cont ro l over

load out area and updates warehouse s tock records in a t imely

manner .

3.9: SWOT ANALYSIS OF HCCBPL

3.9.1: STRENGTHS

DISTRIBUTION NETWORK: The Company has a s t rong

and re l iab le d is t r ibut ion network . The network i s fo rmed on the

bas is o f the t ime o f consumpt ion and the amount o f sa les

y ie lded by a par t icu lar customer in one t ransact ion . I t has a

d is t r ibut ion network cons is t ing o f a number o f e f f i c ient

sa lesmen, 700,000 reta i l out le ts and 8000 d is t r ibutors . The

d is t r ibut ion f leet inc ludes d i f fe rent modes o f d is t r ibut ion , f rom

10- tonne t rucks to open-bay three whee lers that can nav igate

through narrow a l leyways o f Ind ian c i t ies and t rademarked

t r i cyc les and pushcar ts .

STRONG BRANDS: The products produced and

marketed by the Company have a s t rong brand image. Peop le a l l

a round the wor ld recogn ize the brands marketed by the

Company. S t rong brand names l i ke Spr i te , Fanta , L imca, Thums

Up and Maaza add up to the brand name of the Coca-Co la

Company as a who le . The red and whi te Coca-Co la i s one o f the

very few th ings that are recogn ized by peop le a l l over the

wor ld . Coca-Co la has been named the wor ld 's top brand for a

49

four th consecut ive year in a survey by consu l tancy In terbrand.

I t was est imated that the Coca-Co la brand was worth

$70.45b i l l ion .

(h t tp : / /news.bbc .co .uk /1 /h i /bus iness /4706275.s tm)

LOW COST OF OPERATIONS: The product ion ,

market ing and d is t r ibut ion systems are very e f f i c ient due to

forward p lann ing and maintenance o f cons is tency o f operat ions

wh ich min imizes wastage o f both t ime and resources leads to

lower ing o f costs .

3.9.2: WEAKNESSES

LOW EXPORT LEVELS: The brands produced by the

company are brands produced wor ldwide thereby mak ing the

expor t leve ls very low. In Ind ia , there ex is ts a major

cont roversy concern ing pest ic ides and other harmfu l chemica ls

in bot t led products inc lud ing Coca-Co la . In 2003, the Centre for

Sc ience and Env i ronment (CSE) , a non-governmenta l

o rgan izat ion in New De lh i , sa id aerated waters produced by so f t

dr inks manufacturers in Ind ia , inc lud ing mul t inat iona l g iants

Peps iCo and Coca-Co la , conta ined tox ins inc lud ing l indane, DDT,

malath ion and ch lorpyr i fos - pest ic ides that can cont r ibute to

cancer and a breakdown o f the immune system. Therefore ,

peop le abroad, are apprehens ive about Coca-Co la products f rom

Ind ia .

SMALL SCALE SECTOR RESERVATIONS LIMIT

ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE:

The Company’s operat ions are car r ied out on a smal l sca le and

due to Government res t r i c t ions and ‘ red- tap ism’ , the Company

50

f inds i t very d i f f i cu l t to invest in techno log ica l advancements

and ach ieve economies o f sca le .

3.9.3: OPPORTUNITIES

LARGE DOMESTIC MARKETS: The domest ic market fo r

the products o f the Company i s very h igh as compared to any

other so f t dr ink manufacturer . Coca-Co la Ind ia c la ims a 58 per

cent share o f the so f t dr inks market ; th is inc ludes a 42 per cent

share o f the co la market . Other products account for 16 per

cent market share , ch ie f ly led by L imca. The company appo inted

50,000 new out le ts in the f i r s t two months o f th is year , as par t

o f i t s p lans to cover one lakh out le ts fo r the coming summer

season and th is a lso covered 3 ,500 new v i l lages . In Banga lore ,

Coca-Co la amounts for 74% of the beverage market .

EXPORT POTENTIAL: The Company can come up wi th

new products wh ich are not manufactured abroad, l i ke Maaza

etc and expor t them to fore ign nat ions . I t can come up wi th

s t rateg ies to e l iminate apprehens ion f rom the minds o f the

peop le towards the Coke products produced in Ind ia so that

there w i l l be a cons iderab le amount o f expor ts and i t i s yet

51

another oppor tun i ty to broaden future prospects and cater to

the g loba l markets ra ther than jus t domest ic market .

HIGHER INCOME AMONG PEOPLE: Deve lopment o f

Ind ia as a who le has lead to an increase in the per cap i ta

income thereby caus ing an increase in d isposab le income.

Un l ike o lden t imes , peop le now have the power o f buy ing goods

o f the i r cho ice w i thout hav ing to worry much about the f low o f

the i r income. The beverage indust ry can take advantage o f such

a s i tuat ion and enhance the i r sa les .

3.9.4: THREATS

IMPORTS: As Ind ia i s deve lop ing at a fas t pace , the

per cap i ta income has increased over the years and a major i ty

o f the peop le are educated, the expor t leve ls have gone h igh .

Peop le unders tand t rade to a la rge extent and the demand for

fo re ign goods has increased over the years . I f consumers sh i f t

onto imported beverages rather than have beverages

manufactured w i th in the country , i t cou ld pose a threat to the

Ind ian beverage indust ry as a who le in turn a f fect ing the sa les

o f the Company.

TAX AND REGULATORY SECTOR: The tax system in

Ind ia i s accompanied by a var ie ty o f regu lat ions at each s tage

on the consequence f rom product ion to consumpt ion . When a

l i cense i s i ssued, the product ion capac i ty i s ment ioned on the

l i cense and every t ime the product ion capac i ty needs to be

increased, the l i cense poses a prob lem. Renewing or updat ing a

52

l i cense every now and then i s d i f f i cu l t . Therefore , th is can l imi t

the growth o f the Company and pose prob lems.

SLOWDOWN IN RURAL DEMAND: The rura l market

may be a l lu r ing but i t i s not w i thout i t s prob lems: Low per

cap i ta d isposab le incomes that i s ha l f the urban d isposab le

income; la rge number o f da i ly wage earners , acute dependence

on the vagar ies o f the monsoon; seasona l consumpt ion l inked to

harvests and fes t iva ls and spec ia l occas ions ; poor roads ; power

prob lems; and inaccess ib i l i ty to convent iona l adver t i s ing media .

A l l these prob lems might lead to a s lowdown in the demand for

the company’s products .

3.10: COMPETITORS TO HCCBPL

The compet i tors to the products o f the company main ly l ie in

the non-a lcoho l ic beverage indust ry cons is t ing o f ju ices and so f t

dr inks .

The key compet i tors in the indust ry are as fo l lows:

PepsiCo: The Peps iCo cha l lenge, to keep up w i th

archr iva l , the Coca-Co la Company never ends for the Wor ld 's #

2 , carbonated so f t -dr ink maker . The company 's so f t dr inks

inc lude Peps i , Mounta in Dew, and S l i ce . Co la i s not the

company 's on ly beverage; Peps iCo se l l s T rop icana orange ju ice

brands , Gatorade spor ts dr ink , and Aquaf ina water . Peps iCo a lso

se l l s Do le ju ices and L ip ton ready- to -dr ink tea . Peps iCo and

Coca-Co la ho ld together , a market share o f 95% out o f wh ich

60 .8% is he ld by Coca-Co la and the res t be longs to Pep s i .

Nestlé: Nest le does not g ive that tough a compet i t ion

to Coca-Co la as i t main ly dea ls w i th mi lk products , Baby foods

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and Choco lates . But the iced tea that i s Nestea which has been

in t roduced in to the market by Nest le prov ides a cons iderab le

amount o f compet i t ion to the products o f the Company. I ced tea

i s one o f the c losest subst i tu tes to the Co las as i t i s a th i rs t

quencher and i t i s hea l th ier when compared to f i zz dr inks . The

f lavored mi lk products a lso have become subst i tu tes to the

products o f the company due to growing hea l th awareness

among peop le .

Dabur: Dabur in Ind ia , i s one o f the most t rus ted

brands as i t has been operat ing ever s ince t imes and peop le

have la id a l l the i r t rus t in the Company and the products o f the

Company. Apar t f rom food products , Dabur has in t roduced in to

the market Rea l Ju ice wh ich i s packaged f resh f ru i t ju ice . These

products g ive a s t rong compet i t ion to Maaza and the la test

product Minute Maid Pu lpy Orange.

CHAPTER 4: PRODUCTS

The Coca-Co la Company o f fers a w ide range o f products to the

customers inc lud ing beverages , f ru i t ju ices and bot t led minera l

water . The Company i s a lways look ing to innovate and come up

wi th , e i ther complete new products or new ways to bot t le or

pack the ex is t ing dr inks . The Coca-Co la Company has a w ide

range o f products out o f wh ich the fo l lowing products are

marketed by HCCBPL:

In the Cola Section:

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In the Lemon section:

55

In the Orange section:

In the Juice section:

56

In the Soda Water and Bottled Mineral Water

section:

In the Tonic Water section:

57

4.1: PACKAGING DETAILS

Coca-Co la , Thums Up, Fanta L imca and Spr i te : 330 ml

can , 200 ml and 300 ml re turnab le g lass bot t les ; 500+100 ml ,

1 .5 l i t re and 2 l i t re PET bot t les

58

COCA-COLA: - 300ml 330ml can 200ml

600ml 1 .5 l 2 l

Diet Coke: 330 ml can and 500 ml PET bot t le

59

330 ml 500ml

Maaza: 200 ml and 250 ml Returnab le G lass Bot t le ;

500+100 ml and 1 l i t re+200 ml f ree PET bot t les and the newly

in t roduced 200 ml Tet ra Pack

200 & 250ml 600ml 200ml te t ra

Minute Maid Pu lpy Orange: 400 ml and 1 l i t re PET

bot t les

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1 l t

Schweppes Soda Water : 300ml RGB 330 ml cans , 1 l t

PET bot t les

330 ml cans , 1 l t pet 300ml

Schweppes Minera l Water : 330ml cans 750 ml PET

bot t les

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330ml cans 750 ml

Schweppes Ton ic Water : 355 ml can

355 ml 1 l t

62

Kin ley Soda Water : 300 ml re turnab le g lass bot t les ,

500+100 ml f ree and 1 .5 l i t re PET bot t les .

300,1 .5 l t . .

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CHAPTER 5: PROJECT__________________________

5.1 SALES PROMOTION

5.1.1 INTRODUCTION TO SALES PROMOTION:

MEANING:

Sa les promot ion inc ludes those sa les act iv i t ies , wh ich supp lement personne l se l l ing and adver t i s ing . I t i s a d i rect inducement that o f fers ext ra va lue or incent ive for the product . Th is incent ive may be d i rected towards the consumer or the t rade. In o ther words , promot ion s t imulates the customer to make prompt dec is ion to purchase the product . I t even in f luences them or prevents them f rom swi tch ing over to brands .

Nature of the Sales Promot ion:

Market ing - Sa les promot ion

Sales promot ion is the process of  persuading a potent ia l customer   to buy the product .   Sa les promot ion is des igned to be used as a  short - term tact ic   to boost sa les – i t i s not real ly des igned to bui ld long-term customer loyal ty . Some sales promot ions are a imed at consumers.   Others are targeted at intermediar ies (such as agents and wholesalers) or at the f i rm’s sa les force. When undertaking a sa les promot ion, there are several factors that a bus iness must take into account:What does the promot ion cost  – wi l l the resul t ing sa les boost just i fy the investment? I s the sa les promot ion consistent with the brand image?  A promot ion that heavi ly d iscounts a product with a premium pr ice might do some long-term damage to a brandWi l l the sa les promot ion attract customers who wi l l cont inue to buy the product  once the promot ion ends, or wi l l i t s imply attract those customers who are a lways on the look-out for a bargain?

There are many methods of sa les promot ion, inc luding:

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Money of f coupons – customers receive coupons, or cut coupons out of newspapers or a products packaging that enables them to buy the product next t ime at a reduced pr ice

Compet i t ions – buying the product wi l l a l low the customer to take part in a chance to win a pr ize

Discount vouchers – a voucher ( l ike a money of f coupon)

Free g i f ts – a f ree product when buy another product

Point of sa le mater ia ls – e .g. posters , d isp lay stands – ways of present ing the product in i ts best way or show the customer that the product is there.

Loyal ty cards – e .g. Nectar and Air Mi les; where customers earn points for buying certa in goods or shopping at certa in reta i lers – that can later be exchanged for money, goods or other of fers Loyal ty cards  have recent ly become an important form of sa les promot ion.   They encourage the customer to return to the reta i ler by g iv ing them discounts based on the spending f rom a previous v is i t . Loyal ty cards can of fset the d iscounts they of fer by making more sa les and persuading the customer to come back.   They a lso provide informat ion about the shopping habits of customers – where do they shop, when and what do they buy?   This is very valuable market ing research and can be used in the p lanning process for new and exist ing products .

Sales promot ion   i s one of the four aspects of  promot ional mix   (The other three parts of the  promot ional mix  are  advert is ing ,  personal se l l ing , and publ ic i ty /publ ic re lat ions . ) Media and non-media market ing communicat ion are employed for a pre-determined, l imited t ime to increase consumer demand, st imulate market demand or improve product avai labi l i ty . Examples: Inc lude  contests ,  coupons ,   f reebies ,   loss leaders ,  point o f purchase  displays,  premiums, pr izes,  product samples , and   rebatesSales promot ions can be d i rected at the   customer , sa les staf f , or  d is t r ibut ion  channel members (such as   reta i lers ) . Sa les promot ions targeted at the consumer  are ca l led  consumer sa les promot ions. Sa les promot ions targeted at reta i lers and  wholesa le  are ca l led   t rade sa les promot ions. Many

65

consider some sale promot ions, part icu lar ly ones with unusual methods, g immicks.

Sales promot ion inc ludes several communicat ions act iv i t ies that attempt to provide added value or incent ives to consumers, wholesalers , reta i lers , or other organizat ional customers to st imulate immediate sa les . These ef forts can attempt to st imulate product interest , t r ia l , or purchase. Examples of devices used in sa les promot ion inc lude coupons, samples, premiums, point -of -purchase (POP) d isp lays, contests , rebates, and sweepstakes.

Sa les Promot ion

Consumer sa les Trade sa les promot ions promot ions

5.1.2 Consumer sales promotion techniques

Pr ice deal : A temporary reduct ion in the pr ice, such as happy hourLoyal Reward Program: Consumers co l lect points , mi les , or credi ts for purchases and redeem them for rewards. Two famous examples are  Pepsi Stuf f  and AAdvantage.Cents-off deal : Of fers a brand at a lower pr ice. Pr ice reduct ion may be a percentage marked on the package.Price-pack deal: The packaging of fers a consumer a certa in percentage more of the product for the same pr ice ( for example, 25 percent extra) .Coupons: coupons have become a standard mechanism for sa les promot ions.Loss leader: the pr ice of a popular product is temporar i ly reduced in order to st imulate other prof i table sa lesFree-standing insert (FSI): A coupon booklet is inserted into the local newspaper for del ivery.On-shelf couponing : Coupons are present at the shel f where the product is avai lable.Checkout dispensers: On checkout the customer is g iven a coupon based on products purchased.

66

Sales Promotion

On-l ine couponing : Coupons are avai lable onl ine. Consumers pr int them out and take them to the store.Mobile couponing: Coupons are avai lable on a mobi le phone. Consumers show the of fer on a mobi le phone to a sa lesperson for redemption.Online interactive promotion game: Consumers p lay an interact ive game associated with the promoted product . See an example of the   Interact ive Internet Ad   for tomato ketchup.Rebates: Consumers are of fered money back i f the receipt and barcode are mai led to the producer .Contests/sweepstakes/games: The consumer is automat ica l ly entered into the event by purchasing the product .

Point -of -sa le d isp lays: -A is le interrupter : A s ign that juts into the a is le f rom the shel f .Dangler : A s ign that sways when a consumer walks by i t .Dump bin: A b in fu l l o f products dumped ins ide.Glor i f ier : A smal l s tage that e levates a product above other products .Wobbler : A s ign that j igg les.L ipst ick Board: A board on which messages are wr i t ten in crayon.Necker: A coupon p laced on the 'neck' of a bott le .YES uni t : "your extra sa lesperson" is a pul l -out   fact sheet .E lectro luminescent: So lar -powered, animated l ight in mot ion.K ids eat f ree specia ls : Of fers a d iscount on the tota l d in ing b i l l by of fer ing 1 f ree k ids meal wi th each regular meal purchased.

Trade sales promotion techniques

Trade al lowances: short term incent ive of fered to induce a reta i ler to stock up on a product .Dealer loader: An incent ive g iven to induce a reta i ler to purchase and d isp lay a product .Trade contest: A contest to reward reta i lers that se l l the most product .Point-of-purchase displays : Used to create the urge of " impulse" buying and sel l ing your product on the spot .Training programs: dealer employees are t ra ined in se l l ing the product .Push money: a lso known as "spl i f fs" . An extra commiss ion paid to reta i l employees to push products .

67

Trade d iscounts (a lso ca l led funct ional d iscounts) : These are payments to d istr ibut ion channel members for performing some funct ion.

.

5.2 Sales Promotion Strategies:

There are three types of sa les promot ion strategies:  Push ,  Pul l , or a  combinat ion  o f the two.

A push strategy involves convinc ing trade intermediary channel members to "push" the product through the d istr ibut ion channels to the u l t imate consumer v ia promot ions and personal se l l ing ef forts . The company promotes the product through a resel ler who in turn promotes i t to yet another resel ler or the f ina l consumer. Trade-promot ion object ives are to persuade reta i lers or wholesalers to carry a brand, g ive a brand shel f space, promote a brand in advert is ing, and/or push a brand to f ina l consumers. Typica l tact ics employed in push strategy are: a l lowances, buy-back guarantees, f ree t r ia ls , contests , specia l ty advert is ing i tems, d i scounts , d isp lays, and premiums.

A pull  strategy at tempts to get consumers to "pul l " the product f rom the manufacturer through the market ing channel . The company focuses i ts market ing

68

communicat ions ef forts on consumers in the hope that i t s t imulates interest and demand for the product at the end-user level . Th is strategy is of ten employed i f d istr ibutors are re luctant to carry a product because i t gets as many consumers as poss ib le to go to reta i l out lets and request the product , thus pul l ing i t through the channel . Consumer-promot ion object ives are to ent ice consumers to t ry a new product , lure customers away f rom compet i tors ’ products , get consumers to " load up" on a mature product , ho ld & reward loyal

customers, and bui ld consumer re lat ionships. Typica l tact ics employed in pul l s t rategy are: samples, coupons, cash refunds and rebates, premiums, advert is ing specia l t ies , loyal ty programs/patronage rewards, contests , sweepstakes, games, and point -of -purchase (POP) d isp lays.

Car dealers of ten provide a good example of a combination strategy . I f you pay attent ion to car dealers ' advert is ing, you wi l l o f ten hear them speak of cash-back of fers and dealer incent ives.

5.3: OBJECTIVE OF THE STUDY

The main object ive of th is study l ies in studying and understanding the present of fers and schemes provid ing by the Coca-Cola and how much reta i ler sat is fy ing with present of fers .

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CHAPTER 6 METHODOLOGY______________________

6.1 RESEARCH METHODOLOGY

6.2 DATA ANALYSIS

6.1 RESEARCH METHODOLOGY

This research involved a study, which was descr ipt ive

as wel l as explorat ive in nature i t bas ica l ly a ims at

gather ing data about how the coca-cola scheme

play ing in the mind of shopkeepers & consumer.

METHODS OF DATA COLLECTION:

THERE ARE TWO TYPES OF DATA

1. Pr imary data

2. Secondary data

1) Primary data col lect ion : Primary data can be

col lected by three methods.

70

a) Observat ion

b) Exper iment

c ) Surveys

But here, only surveys method of data co l lect ion is preferred which is very su i table to reach the researcher motto.

A. Research instrument: Pr inted Quest ionnaire was

used as the research instrument to co l lect the required

informat ion.

B. Area of surveys: The survey was conducted in

d i f ferent locat ion of V izag c i ty .

Sampling plan: sampl ing plan consists of

I . Sampling unit : The reta i ler of Grocery shop,

general store, bete l shop, and medic ine store was

se lected f rom di f ferent p laces of V izag.

II . Sampling size : 200 Out lets .

III . Sampling procedure : Simple random sampl ing

procedure was fo l lowed

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IV. Sampling method : Data were co l lected by

reta i ler survey. The reta i lers are d i rect ly contacted

and interv iewed at thei r reta i l counter .

2) Secondary data collection : As secondary data

were not avai lable with shopkeepers as wel l as

stockiest , so these were co l lected f rom company

records.

6.2 ANALYSIS OF DATA

DATA ARE COLLECTED FROM DIFFERENT LOCATION OF VIZAG

L IKE:

1. Kancharapalem

2. Akkayapalem

3. H.B.Colony

4. Rushikonda

5. Mithilapuri Colony

6. P.M.Palem

7. Madhurawada

8. Carshed

9. Pendurthi

10. Chinamushidiwada

11. Gopalapatnam

12. N.A.D

13. Marripalem

And few more places…

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SURVEY ANALYSIS

THE SURVEY WAS CONDUCTED IN DIFFERENT

LOCATION OF VIZAG. A TOTAL SURVEY OF 200

OUTLETS WAS CONDUCTED.

OBSERVATION

1. I visited about 200 outlets.

2. Out of 200 shops covered in different areas, I

focused on covering different shops according to

location, so that I can know where coca-cola products

have the best penetration. Among the shop covered,

17% were on the chaurastha, 35% were on the main

road, 28% in the market and 20% were near a

residential area.

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3. I assigned the various shops covered into different

categories. The various categories covered were

Grocery, Confectionary, Bakery, Juice Shops, Ice Cream

parlors, Restaurant, Food Points, P.C.O, Dairy, and Pan

Shops.

6.3 FINDINGS

1. Which type of promot ions do you l ike?

A) Volume L inked SchemesB) Cash Discount Schemes C) G i f ts on Target Achievement

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25

65

5

A B C

Interprtat ion:

As per the above quest ion most of the reta i lers l ike cash

d iscounts on their each purchase f rom the company. In my

survey most of the out lets are grocer ies so their sa le is

l imited when there is no need of more volume they don’t

want other two schemes.

So as per my study i f company want to

launch scheme better i t should be a cash d iscount type.

2. Are you receiv ing suf f ic ient d isp lay mater ia l f rom coke?

A) Yes B) No

75

25

75

A B

Interpretat ion:

For th is quest ion most of the reta i ler ’s compla int ing about

they are not receiv ing any k ind of d isp lay mater ia ls very few

are sat is fy ing with our d isp lay mater ia ls so company should

concentrate about d isp lay .

3 .Which type of premiums do you l ike?

A) Luggage bags B) K i tchen ware

C) Accessor ies D) Cash Voucher

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55

2

88

A B C

D

Interpretat ion:

L ike as a 1 s t quest ion most of the reta i lers l ike Cash

Vouchers only af ter that they preferred Luggage bags and

Ki tchenware .

4. Are you gett ing a l l the d iscounts or pr izes as per company promised?

A) Yes B) No

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30

70

A B

Interpretat ion:Maximum reta i lers sa id no.Example: Consumer having RGB in out let and he get something on backs ide of the crown that is not gett ing f rom the company th is was the major compla int f rom the reta i ler .

5 . Compar ing with others how is coke promot ion p lans?

A) Very Good B) Good C) Bad D) Worst

78

55

2

88

A B

C D

Interpretat ion:

To say f rankly coke does not provid ing good promot ions to reta i lers as wel l as to the customer so major of the people were sa id against to the company.

6. What are the peak sel l ing hours of th is out let?

A) 10am-1pm B) 2pm- 6pm C) 6pm-10pm D) Any other

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30

1050

10

A B

C D

Interpretat ion: Coming to the peak hours actual ly i t dependes on the type of the out let and i ts locat ion as per my survey major peak hours are 10am to 1pm between and again 6pm to 10pm between remain ing t ime there is no that much customer v is i t so sa le was down in the remain ing hours .

7) Which is the most se l l ing pack in your out let?

80

5

55

30

10

3

20

Coca Cola Thumsup Sprite

Maaza Fanta Limca

Interpretat ion:

Coming to most se l l ing brand in V izag c i ty Thumsup occupied major market more then hal f percentage of market share is grabed by Thumsup only af ter that Spr i te is the 2 n d major se l l ing brand f rom the coke after those L imca and Maaza l is ted.

8. Are consumers sat is f ied with the var iety of packs of fered?

81

A) Yes B) No

98

2

A B

Interpretat ion:

What ever the present var iet ies coke had in the market with those consumers are very much happy. For th is quest ion maximum people sa id yes. Coke gett ing more apprec iat ion in th is concept .

9. Which pack se l ls the most?

82

A) Glass bott le B) PET bott leC) CAN D) Tetra

60

30

73

A B

C D

Interpretat ion:

Coke got the b ig market f rom RGB and PET bott les . That too in RGB sector 200ml was the most se l l ing pack. Coming to PET bott les a l l have the equal share but 600ml was l i t t le b i t h igh sa le when compar ing with 1 l t r 1 .5 l t r and 2 l t r paks.

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10. Which companies s ignage do you have at your out let?

A) Coca Cola B) PepsiC) Own D) Other

10

10

60

20

A B

C D

Interpretat ion:In th is category coke stands in a bad pos i t ion coke not provid ing s ign boards in th is s ignage sect ion others and owned boards are more.

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11. Which companies v is i -cooler do you have in your out let?

A) Coca Cola B) PepsiC) Own D) Both

6020

5

15

A B C

D

Interpretat ion:

Coming to v is i coolers coke doing wel l job a lmost 60% of the out lets are us ing coke coolers only . Even customer got a chance where he can choose d i rect ly f rom our cooler .

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6.4 SUGGESTIONS:

Tak ing the above ana lys is in to cons iderat ion , the fo l lowing

po ints can be regarded for fur ther sa les promot ion:

Present coca-co la o f fers are very much l imi ted so need

improvement on schemes.

In some areas our serv ice was l i t t le b i t down l ike

gopa lapatnam, s imhacha lam ra i lway s tn areas…

When compar ing w i th Peps i re ta i le r o f fers very much

less in Coke, to keep them Coke need a bet ter p lans .

Some t imes Coke does not meet ing market requ i red

supp ly .

More promotional offers have to be introduced

Market developers should be given some amount which can be used to

provide credit facility to some retailers.

Market developers and sales people should work together

Install Fountain Machine at different locations. It will be helpful in generating

impulse purchase and also as awareness about the products of the company

among the consumers

Many customers prefer to have coffee or tea so Coca-Cola can launch its

Georgia coffee vending machines. As many retailers are having either Nestea or

other this will be a success.

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.

Delivery should be done more quickly.

Gifts should be given to certain retailers who sells large quantities of goods.

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Chapter 7 Conclusion Bibliography Annexure

CONCLUSION

EVERY THING IN THIS WORLD IS MADE TO UTILIZE PROPERLY BUT IT

SHOULD BE REACH AT THE PROPER PERSON OR TO THE PROPER

UTILIZED AREAS. OTHERWISE THE VALUE ADDED TO THOSE THINGS

BECAME IN VEIN.

AS THERE IS A PROVERB THAT,

“FAR FROM EYE, FAR FROM HEART”

THUS MARKETING ROLE PLAYS A VERY IMPORTANT ROLE IN

ACHIEVING THE OBJECTIVES OF A COMPANY. UNDOUBTLY, VALUE

UTILITY IS CREATED BY THE MANUFACTURE OF PRODUCT OR SERVICE

BUT TIME AND PLACE UTILITIES ARE CREATED BY MARKETING ROLE.

ACCORDING TO DRUCKER, “BOTH THE MARKET AND THE

DISTRIBUTION CHANNELS ARE OFTEN MORE CRUCIAL THAN THE

PRODUCT”.THEY ARE PRIMARY AND THE PRODUCT IS SECONDRY. IN AN

ECONOMY LIKE THAT OF INDIA, WHERE MARGINAL SHORTAGES CAN

LEAD TO DISPROPORTATION DISTORTION IN PRICES, A DEPENDABLE

AND EFFICIENT DISTRIBUTION SYSTEM IS VERY MUCH ESSENTIAL. THE

DISTRIBUTION SYSTEM CREATES A VALUE ADDED TO ALL MOST ALL

PRODUCTS.

ALL FROM THE ABOVE STUDY NOT WITHSTANDING ITS RESTRUCTING

EFFORTS PEPSI IS STILL FAR AWAY WITH ITS GREAT COMPETITOR LIKE

COKE.

87

BIBILOGRAPHY

Reference:

Books Authors

Market ing Research :Naresh Malhotra

Market ing Management :Phi l ip Kot ler

Research Methodology :C. R. Kothar i

DATA SOURCES

Websites :

www.quickmba.com

www.indiacom.com

www.yel lowpages.com

www.coca-cola india.com

www.wik ipedia.org

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ANNEXURE

Questionnaire

H INDUSTAN COCA-COLA BEVERAGES PVT.LTD QUESTIONNAIRE ON SALES PROMOTION

Area :

Out let Name :

Out let Type : Convenience/ Grocery/Eat & Dr ink

KO/PC/Shared:

Phone no. :

1. Which type of promot ions do you l ike?A) Volume L inked Schemes B) Cash Discount Schemes C) Gi f ts on Target Achievement

2. Are you receiv ing suf f ic ient d isp lay mater ia l f rom coke?A) Yes B) No

3. Which type of premiums do you l ike?A) Luggage bags B) K i tchen wareC) Accessor ies D) Cash Voucher

4. Are you gett ing a l l the d iscounts or pr izes as per company promised?A) Yes B) No

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5. Compar ing with others how is coke promot ion p lans?A) Very Good B) GoodC) Bad D) Worst

6. What are the peak sel l ing hours of th is out let? A) 10am-1pm B) 2pm- 6pm C) 6pm-10pm D) Any other

7. Which is the most se l l ing pack in your out let?Note: Brand -Size -

8. Are consumers sat is f ied with the var iety of packs of fered? A) Yes B) No

9. Which pack se l ls the most?B) Glass bott le B) PET bott leC) CAN D) Tetra

10. Which companies s ignage do you have at your out let?B) Coca Cola B) PepsiC) Own D) Other

11. Which companies v is i -cooler do you have in your out let?B) Coca Cola B) PepsiD) Own D) Both

12. Which age group is assoc iated with brands?A) Coca Cola B) ThumsUpC) Spr i te D) MaazaE) Fanta F) L imca

13. Any improvement you want in our serv ice?Note:

90