Brindavan Bottlers Pvt. Ltd.

Summer Internship Report On vertical growth of

Coca - Cola

Submitted byKARISHMA Student of University of Lucknow Batch: 2012-14

Submitted to-

ACKNOWLEDGEMENT ______________________________________________
I would like thank to Mr. Nitin Malik, Marketing Manager, Brindavan Bottlers pvt. Ltd. Without whom my internship with BBPL would not have been possible. I am grateful to him for having taken time off his busy schedule and spoken to the concerned person to get me this internship. I express my gratitude to the Brindavan bottlers private limited for having given me an opportunity to work with them and make the best of my internship. I thank my trainer Mr. Gourav Keservani for trained me and constantly guided and supported me throughout the training period. I would like to thank retailers, shopkeepers of assigned areas of Lucknow who were interviewed by me. I appreciate for their cooperation and contributions for helping me in making my report factual and informative. I also express gratitude to Mr.Negi (Supervisor of BBPL) who have been instrumental in making this report useful one. I also taken help from internet. Finally, I wish to thank to my family and friends for their inspiration, encouragement, support and every ready help, which enabled me.

PREFACE
_____________________________________________________________________________________________________________________

In summer the consumption of soft drinks is more due to hot weather in this time chilled weather is needed everywhere and everybody irrespective of age difference. In the market peoples not only need water, but they want some task too. Here comes the need of soft drinks: it has become an essential part of market as people like it in addition to the bottles, now a days packages of soft drinks i.e. Tin cans, pet packs i.e. Litters canisters and dispensers are introduced to enhance the impact in sales. The MBA curriculum is designed in such a way that student can grasp maximum knowledge and can get practical exposure to the corporate world in minimum possible time. Business schools of today realize the importance of practical knowledge over the theoretical base. The research report is necessary for the partial fulfillment of MBA curriculum and it provides an opportunity to the student in understanding the industry with special emphasis on the development of skills in analyzing and interpreting practical problems through the application of management theories and techniques. It is a new platform of learning through practical experience, which incorporates survey and comparative analysis. It gives the learner an opportunity to relate the

theory with the practice, to test the validity and applicability of his classroom learner against real life business situations.

EXECUTIVE SUMMARY
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer and distributor of non -alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. CocaCola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca -Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to
4

the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the CocaCola Company. The main objective of this study lies in understanding the organization and studying and understanding the consumers perception and opinion about the latest product, Minute Maid Pulpy Orange, introduced into India, by the Coca-Cola Company. A consumer sampling involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give the product the required marketing push and to recognize the prospective consumers and their opinion in order to develop and market the product in a better way in the near future. The methodology used in studying and understanding the perceived views of consumers towards the product was SAMPLING. The findings of the activity have been drawn out in form of graphs and suggestions have been offered there from.

TABLE OF CONTENTS ____________________________________________________

CHAPTER 1: INTRODUCTION..10 1.1: A brief insight- The FMCG Industry in India11 1.2: A brief insight- The Beverage Industry in India13 Figure 1: Beverage Industry in India14

CHAPTER 2: THE COCA-COLA COMPANY.16 2.1: History.16 2.2: History of Bottling.19 2.3: Manifesto for Growth..24 2.3.1: Values..24 2.3.2: Mission....25 2.3.3: Vision for Sustainable Growth....25 Figure 2: Vision for Sustainable Growth26

CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED..26 3.1: About the Company...26 Figure 3: Location of COBO, FOBO and Contract packers....28 3.2: Manifesto for Growth..28 3.2.1: Values28 6

3.2.2: Vision for Sustainable Growth............29 3.2.3: Mission....29 3.2.4: Quality Policy..30 3.3: Organization Structure of Coca-Cola India..31 Figure 4: Organization Structure of Coca-Cola India.31 Figure 5: Organization Structure of Coca-Cola India.32 3.4: Organization Structure of the Sales Department in HCCBPL....33 Figure 6: Organization Structure of the Sales Department.33 3.5: CARBONATED SOFT DRINK (CSD) INDUSTRY...34 3.5.1: Industry Structure...34 3.6: CONTRIBUTION TOWARDS ENVIRONMENT.35 3.6.1: The Coca-Cola System in India Celebrates World Water Day.35

3.7: LOCATION.36 3.8: PRODUCTION SCHEDULING36 3.9: Techniques..36 3.10: WASTE MANAGEMENT38 3.11: Distribution of coca-cola.39 Figure 7: Distribution of coca-cola.39 3.12: Marketing channels and Supply Chain Management..41 3.13: Key Channel Listing..42 3.14: Supply Chain Function.43

3.15: Change in formula...44 3.16: Change in coloring45 3.17: Manufacturing process at BBPL..45 Figure 8: Manufacturing process..45 3.17.1: The manufacturing of the products of Coca-Cola involves the following steps...46 3.18: DISTRIBUTION PROCESS..47 3.18.1: Distribution Routes...47 3.18.2: Distribution System...48 3.18.3: Departments involved in the Distribution process....48 3.19: SWOT Analysis of BBPL..49 3.19.1: Strengths....49 3.19.2: Weaknesses...51 3.19.3: Opportunities.52 3.19.4: Threats..54 3.20: Competitors .55 3.21: Marketing Mix56 3.21.1: Product.56 3.21.2: Price..57 3.21.3: Promotion..58 3.21.4: Place.59 CHAPTER 4: PRODUCTS60 4.1: Packaging details..62 8

CHAPTER 5: PROJECT On vertical growth..63 5.1: Objective of the Study63 5.2: Research Methodology64 5.3: Sample size for survey64 5.4: Scope of the study65 5.5: Method of data collection.65 5.6: Areas which Ive covered..65 5.7: TYPES OF EXPANSION66 5.7.1: vertically expansion..66 5.8: Market observation..66 5.9: Findings and analysis..67 5.9.1: Analysis of 200 ml pack wise67

5.9.1.1: Graph 1: Analysis of 200 ml pack wise....67

5.9.2: 600 ML pack wise.69

5.9.2.1: Graph 2: 600 ML pack wise69

5.9.3: 1.25 L pack wise70 5.9.3.1: Graph 3: 1.25Lpackwise70 5.9.4: 2 L pack wise..71 5.9.4.1: Graph 4: 2 L pack wise

...........................................71

5.9.5: Brand wise72

Graph 5: availability of coke....72

5.9.6: LIMCA73

5.9.6.1: Graph 6: availability of Limca73

5.9.7: FANTA....74

5.9.7.1: Graph 7: availability of Fanta...74

5.9.8: MAAZA...74

5.9.8.1: Graph 8: availability of Maaza....74

5.9.9: Tetra pack...75

5.9.9.1:Graph 9: availability of Tetra Pack.....75

5.9.10: Kinley...75

5.9.10.1: Graph 10: availability of Kinley76

5.9.11: Division of channels of 56 outlets.76

Chart 1: Division of channels of 56 outlets..76

5.9.12: Sale of 20 outlets..77

Chart 2: Sale of 20 outlets77

5.9.13: Contribution of coca cola in total sales of 20 outlets....77

Chart 3: Contribution of coca cola in total sales of 20 outlets77

5.9.14: Coke VPO in 20 outlets..78

Chart 4: Coke VPO in 20 outlets...78

5.10: SIX CRITERIAS TO FORM A NEW OUTLET..79 5.11: STEPS FOR TARGETING THE NEW RETAILERS.80 5.12: INTANGIBLE ELEMENT84 5.12.1: About the R.E.D survey..85 5.13: OTHER GENERAL FINDINGS..85 5.14: Suggestions & Recommendations87 5.14.1: It can be achieved by various ways.88 5.15: SIGNIFICANCE OF STUDY.88

10

5.15.1: To the researcher....88 5.15.2: To the company....89 5.15.3: To the others...89 5.16: THE 3AS STRATEGY WAS FOLLOWED..89 5.17: FOCUS ON AVAILABILITY OF PRODUCTS IN OUTLET..91 5.18: FOCUS ON VISIBILITY OF COKE PRODUCTS IN OUTLETS.91 CHAPTER 6: SOME IMPORTANT POINTS..92 6.1: Benefit of installing a visi cooler..92 6.2: Benefits of install a cooler outside the outlet...93 6.3: Benefits of setting up menu boards with combo.93 6.4: Benefits of setting up hanging rack...94 6.5: Benefits of setting up warm display94

APPENDIX.95

DATA SOURCES..95

11

CHAPTER 1: INTRODUCTION

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer and distributor of non alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Companys beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: Provide a moment of refreshment for a small amount of money- a billion times a day.

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the worlds premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day.

12

The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Companys assets and resources whilst limiting business risks.

1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers personal consumption. The realization of the customers growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as 13

the setting up of excise free zones in various parts of the country that witnessed firms moving a away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. The FMCG sector consists of the following categories: Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman.

Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, CocaCola, Cadbury, Pepsi and Dabur

14

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

1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

BEVERAGES

Alcoholic

Non-Alcoholic

Carbonated

Non-Carbonated

Cola

Non-Cola

Non-Cola

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages

15

Natural and Synthetic beverages

In-home consumption and out of home on premises consumption.

Age wise segmentation i.e. beverages for kids, for adults and for senior citizens

Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable.

Four strong strategic elements to increase consumption of the products of the beverage industry in India are:

The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.

The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.

16

Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.

Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.

CHAPTER 2: THE COCA-COLA COMPANY _______________________________________________

2.1: HISTORY

Coca-Cola was first introduced by John Styth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup,

17

whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed.

Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of CocaCola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank 18

Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys incorporation, Mr. Candler announced in his annual report to share owners that Coca-Cola is now drunk in every state and territory in the United States.

As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

2.2: HISTORY OF BOTTLING

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the worldfamous brand it is today. YEAR WISE HISTORY OF BOTTLING: Year 1894: A modest start for a bold idea

19

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the stores owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Colas straight-sided bottle was easily confused with imitators. A group 20

representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world.

In the 1920s: Bottling overtakes fountain sales

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. In the 1920s and 1930s: International expansion Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. In the 1940s: Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower s base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Companys worldwide business.

21

In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960. In the 1960s: Introduction of new brands

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world. In the 1970s and 1980s: Consolidation to serve customers

22

Advancement in technology led to global economy, retail customers of The Coca-Cola Company merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers.

In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

2.3: MANIFESTO FOR VERTICAL GROWTH

2.3.1: VALUES: Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being: 23

LEADERSHIP: The courage to shape a better future

PASSION: Committed in heart and mind

INTEGRITY: Be real

ACCOUNTABILITY: If it is to be, its up to me

COLLABORATION: Leverage collective genius

INNOVATION: Seek, imagine, create, delight

QUALITY: What we do, we do well

.3.2: MISSION To Refresh the World... In body, mind, and spirit To Inspire Moments of Optimism... Through our brands and our actions To Create Value and Make a Difference... Everywhere we engage.

24

2.3.3: VISION FOR SUSTAINABLE GROWTH PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities.

PEOPLE: Being a great place to work where people are inspired to be the best they can be.

PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples Desires and needs.

PARTNERS: Nurturing a winning network of partners and building mutual loyalty.

PLANET: Being a responsible global citizen that makes a difference.

FIGURE 2: VISION FOR SUSTAINABLE GROWTH

25

CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL)

3.1: ABOUT THE COMPANY Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parles plants and a well set bottling network, an excellent base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company.

In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

26

Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide.

COBO FOBO CONTRACT PACKAGING

FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

27

3.2: MANIFESTO FOR GROWTH

3.2.1: VALUES The values that the employees in the Company are expected to keep up to and work by regularly are as follows: LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy and zeal, to deliver outstanding results.

INNOVATION: To continuously strive for progress and reach the next level of excellence in everything we do.

PASSION: To be deeply committed and display drive and energy in the quest to deliver outstanding performance.

TEAMWORK: To unite for greater strength and work collectively as a group towards the achievement of common goals.

OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the lowest appropriate level.

ACCOUNTABILITY: To be individually and transparently accountable to our colleagues for delivering agreed targets and goals.

3.2.2: VISION FOR SUSTAINABLE GROWTH To provide exceptional strategic leadership in the Coca-Cola India System-resulting in consumer and customer preference and loyalty, through Coca-Colas commitment to them, and in a highly profitable Coca-Cola Corporate branded beverages system.

28

3.2.3: MISSION To create consumer products, services and communications, customer service and bottling system strategies, processes and tools in order to create competitive advantage and deliver superior value to; Consumers as a superior beverage experience Consumers as an opportunity to grow profits through the use of finished drinks Bottlers as an opportunity to grow profits in volumes Bottlers as a trademark enhancement and positive economic value added Suppliers as an opportunity to make reasonable profits when creating real value-added in an environment of system-wide team work, flexible business system and continuous improvement Indian society in the form of a contribution to economic and social development.

3.2.4: QUALITY POLICY To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processesEvery time.

Separate laboratory is there to control quality. Continuous monitoring for quality control is there, through online data & various techniques. A device is there, INCROBICS, which provides data in every 15 sec. There is monitoring of: Height of bottles Concentration Weight Carbon dioxide volume: 4.35 Temperature in C: 7.35

29

3.3: ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA

Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North) Regional Vice President (Central)

FIGURE 4: ORGANIZATION STRUCTURE IN COCA-COLA, INIDA

30

Region Vice President

AGM/AOD Unit 1 AGM/AOD Unit 2 AGM/AOD Unit 3 AGM/AOD Unit4 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

FIGURE 5: ORGANIZATION STRUCTURE IN COCA-COLA, INDIA

31

3.4:

ORGANIZATION

STRUCTURE

OF

THE

SALES

DEPARTMENT IN BBPL:

AGM/AOD

Plant

Route to

Human Resource Manager

Finance Manager

General Sales Manager Channel Manager Area Capability Manager

Manager Market

Area Sales Manager

Sales Executive

Marketing

Sales Trainers

Market Developer

Key Accounts

Distributors And Salesmen

FIGURE 6: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

32

3.5: CARBONATED SOFT DRINK (CSD) INDUSTRY

3.5.1: Industry Structure
There are three major participants in the production-carbonated soft drinks. They are concentrate producers for example roughly one half if Pepsi colas sale

are through company owned bottles ; the remaining volume is sold through franchises bottles line of soft drink in a defined territory , and not allowed to market to market a directly competitive major brand.

The principal retail channel for channels for carbonate soft drink are supermarkets, convenience store, vending machines fountain service, and thousand of small outlet. Soft drinks are typically sold in glass bottle and in plastic and cans except for fountain services. In fountain service syrup is sold to a retail outlet. Which mixes the syrup with

carbonated water for immediate sales.

33

3.6: CONTRIBUTION TOWARDS ENVIRONMENT

3.6.1: The Coca-Cola System in India Celebrates World Water Day
Reaffirming its goals on Reduce, Reuse and Replenish water and continue with its commitment towards Water Stewardship and Water Management, The Coca-Cola System in India commenced the celebrations for the International World Water Day with great enthusiasm and zeal. The fortnight long celebrations started in Barabanki with Brindavan Bottlers Limited and Amrit Bottlers Private Limited in partnership with the World Vision, AFPRO and the local community, together restoring 20 rainwater harvesting ponds to create sustainable water resources for this deprived region. The project that was initiated in 2009, was dedicated to the people of Barabanki, Uttar Pradesh. The renovated ponds were dedicated by Vikas Gothalwal, District Magistrate Barabanki in presence of Arun Thomas, Group Executive Public Engagement World Vision, L. D. Ladhani, Managing Director, Amrit Bottlers Pvt Ltd, M. D. Ladhani, Managing Director, Brindavan Bottlers Ltd, Vikas Chawla Vice President, Coca-Cola India, community members and senior leadership of CocaCola India. The Brindavan Unit in UP celebrated the World Water Day by organizing a Tree Plantation drive which involved planting of 20 saplings in the Plant premises by the students of Subash Adarsh Vidalya . A Slogan and Painting Competition followed by the screening of video on Water Conservation was also organized for the students. During the plant visit, the chief guest, Mr M.P.Yadav, Manager, Bank of India presented his views on Water Conservation and also distributed the prizes to the winners of the painting competition. The fortnight long celebrations of World Water Day across the Business Units continues with several projects and awareness programs being conducted to generate awareness about Water Conservation. These programs were conducted in partnership with local NGOs, community leaders, associates of bottling units and other significant stakeholders.

34

3.7: LOCATION
Coca cola comes on the way of faizabad road which comes under national highway 28 Situated at safedabad road barabanki IT is 18 km from lucknow railway station. Being situated at roadside it has good transportation facility which helps to transport its finished products to its target market easily.

3.8: PRODUCTION SCHEDULING

It provides basis for 1. Making good use of manufacturing resources 2. Making customer delivery promises 3. Attaining strategic objectives under sales and operation plans.

3.9: Techniques
Available= inventory position at the end of the week Starting inventory+ production scheduling forecast Before the beginning of every financial year, many manufacturing companies prepare a production plan. The production plan gives the quantity of goods to be produced for each period during the financial year as well the demand for each period. The production plan can be executed weekly, monthly, quarterly or even yearly depending on the products of the company. Production scheduling is the allocation of available production resources over time to best satisfy some criteria such as quality, delivery time, demand and supply. An optimum production schedule is the production schedule, which efficiently allocates resource over time to best satisfy some set criteria i.e. the plan which allocates the optimum level of production resources necessary to meet a given demand at a minimum cost

35

Two sets of parameters are crucial in production scheduling and management: the technological and price constraints of production resources and optimization targets, which serve as the key to the most efficient product order sequencing. Production Scheduling provides a detailed account of production constraints for various industries and enables you to opt for the most efficient production schedules. Production Scheduling is successfully applied in the following industries: automotive, machine engineering, metallurgy, electronics, food and beverage, consumer goods, pharmaceuticals, production of plastic and packing. Typical business situations modeled by Production Scheduling:

Detect bottlenecks and build the production process chain in accordance with the production speed Creation of feasible production schedules, that meet goals and take into account constraints Optimal sequencing of production order performance on technological equipment, based on constraints and optimization rules Schedule work orders Calculation of production schedules Dynamic rescheduling Estimate of production deviations Analysis of production capacities loading Analysis of orders that are not delivered on time What-if scenarios Creation of various production strategies Manual adjustment and approval of the schedule by schedulers Analysis of key performance indicators.

36

3.10: WASTE MANAGEMENT

At the time CCE (Coca Cola Enterprises) was already recycling 72% of its manufacturing waste By 2007 the company increased its recycling level to 94,7%. By investing in waste segregation, sorting and recycling equipments, rising staff awareness, measuring and publishing performance and learning from others in 2009 CCE achieved 99.5% recycling rate with four of its six manufacturing plants now sending zero-waste to landfill from manufacturing operations The goals now are to raise the amount of recycled content used in our PET bottles to 25% by 2012. And finally, to recover the equivalent of 100% of its packaging by 2020, reducing the impact of its packaging and using renewable, reusable and recyclable resources.

37

3.11: Distribution of coca-cola

HINDUSTAN BEVERAGES
COCA COLA VARUN BEVERAGES JAIPURIA BEVERAGES DISTRIBUTOR CONSUMER

FIGURE 7: Distribution

of coca-cola

At the core of our business in India, as in the rest of the world is our production and distribution network, which we call the Coca-Cola system. Globally, the Coca-Cola system includes our Company and more than 300 bottling partners. The Coca-Cola Company manufactures and sells concentrate and beverage bases. Our authorized bottlers combine our concentrate or beverage bases as the case may be with sweetener (depending on the product), water or carbonated water to produce finished beverages. These finished beverages are packaged in authorized containers bearing our trademarks such as cans, refillable glass bottles, nonrefillable PET bottles and tetra packs and are then sold to wholesalers or retailers. In India, additionally, the Company also sells certain powdered beverage mixes such as Vitingo and Fanta Fun Taste. Our beverages reach our ultimate consumers through our customers: the grocers, small retailers, hypermarkets, restaurants, convenience stores and millions of other businesses that are the final points of distribution in the Coca-Cola system. What truly defines the Coca-Cola system, and indeed what makes it unique among businesses, is our ability to create value for our customers and consumers. In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Companyowned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of
38

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

3.12: Marketing channels and Supply Chain Management

Coca Cola has managed their companys marketing and sales strategy within channels. Have you ever considered the significance of the Coke vending machine to the success and profitability of the Coca Cola company?

This channel is direct to consumer and vending machines often have little to no competition and no trade or price promotions. Develop solutions for groups of customers and deploy your benefit throughout the channel as compared to forcing a broad solution onto multiple customer types. For many food companies, the answer to this single question can point to sizeable new profits and opportunities for growth via adding new sales channels and opening new markets with profits and SPEED! The Coke Company operates three primary delivery systems for its business channels: Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club stores;
39

 For smaller channels Coke does advanced sale delivery for convenience stores, drug stores, small supermarkets and on-premise fountain accounts. Full service delivery for its full service vending customers.

3.13: Key Channel Listing

Supermarkets Convenience Stores Fast Food Petroleum Retailers Chain Drug Stores Hotels/Motels/Resorts Mass Merchandisers

3.14: Supply Chain Function

Its ensuring customers everywhere stay refreshed. Operating a global business places tremendous demands on the supply chain. Thats why at The Coca-Cola Company, youll find the very best people answering the call everywhere we do business. We ensure that every link in the chain stretching from bottler to consumer is working together. We cover every aspect of supply from Procurement and Manufacturing (including Quality, Environment, Safety & Health), to Engineering and Logistics. Day to day, this means meeting with our bottlers, with third party suppliers to discuss new products, sourcing potential third party bottlers or perhaps negotiating a contract for work on a new product with a specialized bottler. It also involves working closely with marketing and other functions within the business, aligning their strategic plans with supply chain capabilities.

40

Kind of roles you can find: Distribution and Logistics, Procurement, Equipment Services and Customer Service

3.15: Change in formula

New Coke was the reformulation of Coca-Cola introduced in 1985 by The CocaCola Company to replace the original formula of its flagship soft drink, Coca-Cola (also calledCoke). New Coke originally had no separate name of its own, but was simply known

The American public's reaction to the change was negative and the new cola was a major marketing failure. The subsequent reintroduction of Coke's original formula, re-branded as "Coca-Cola Classic", resulted in a significant gain in sales, leading to speculation that the introduction of the New Coke formula was just a marketing ploy.

41

3.16: Change in coloring

Coca-Cola and Pepsi are changing the way they make the caramel coloring used in their drinks as a result of a California law that mandates drinks containing a certain level of carcinogens bear a cancer warning label "Consumers will notice no difference in our products and have no reason at all for any health concerns," the association said in a statement.

3.17: MANUFACTURING PROCESS AT BBPL

.

FIGURE 8: MANUFACTURING PROCESS

42

3.17.1: The manufacturing of the products of Coca-Cola involves the following steps: Water is received from the River Cauvery and it passes through the water treatment plant, further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.

In the syrup room, the concentrate received from another bottling plant situated at Pune, is blended with the sugar syrup

Once both the water and the final syrup are ready, they are both mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product.

On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and washed for the purpose of filling in the final product in it. This step does not take place in the PET bottle line as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET bottles), labeled and cased in order to be sent into the warehouse for distribution.

43

3.18: DISTRIBUTION PROCESS 3.18.1: DISTRIBUTION ROUTES

The various routes formulated by BBPL for distribution of products are as follows:
Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product. Examples: Departmental stores, Super markets etc.

Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc.

General: Under this route, all the outlets that come in a particular area or an area along with its neighboring areas are catered to. The consumption period is not taken into consideration in this particular route.

44

3.18.2: DISTRIBUTION SYSTEM

Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level.

Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management)

Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.

3.18.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

The Distribution process mainly consists of three departments: Distribution Department: It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their set-up.

45

 Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm, records collections from distributors, periodically reconciles outstanding balances from distributors, obtains balance confirmation from distributors and follows up outstanding balances.

Shipping or Warehousing Department:

It dispatches goods as per

approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner.

3.19: SWOT ANALYSIS OF BBPL 3.19.1: STRENGTHS

DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the CocaCola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated that the CocaCola brand was worth $70.45billion.

46

LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.

Thums-Up & Limca which are the product of Coke are having a reputation of "Swadeshi Brand" in the consumers mind because of its tie-up with the Indian company Parle Exports.

Coke is having more number of bottling plants in compare to Pepsi that is why it has a strong distribution network. Coke is having four Cola brands i.e. Coca Cola & Thums-up Limca & Sprite covers more target customers. Those consumers who prefer hard Cola drink choose Thums-Up & Sprite & those who wants soft drink prefer Coca-Cola & Limca. The packaging of Coca-Cola is in accordance to the taste of the rural people because of its red color logo. The no. of specific outlets for Coke is more compare to the other competitive brands. Thus larger markets share in the area covered by Coke. About 70 to 80% of consumers prefer the taste of the drinks of Coke Co. 3.19.2: WEAKNESSES
LOW EXPORT LEVELS: The brands produced by the company are brands produced world wide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including linden, DDT, malathion and

47

chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Companys operations are carried out on a small scale and due to Government restrictions and red tapism, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.

Less personal contacts with retailers. Service is not good. Company officials do not visits outlets regularly. Less advertisements Channels. Bad and delay in claim settlement. No proper maintenance of asset as like visi-coolers, dealer board, glow sign, etc. Less availability of dealer board, glow signboard, painting etc.

3.19.3: OPPORTUNITIES
LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Lucknow, Coca-Cola amounts for 74% of the beverage market.

48

EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.

HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.

High growth rate for fruit drink market. Gorakhpur city has a great population of youths in U.P. Gorakhpur city has good market share of Slice in India. Targeting the upper middle class for home take segments. Coke must try to approach those outlets that are selling only other competitive brands. Seasonal sellers generally do not have proper cooling system. If they get a small fridge then they can sell more. If Coke covers the schools, office canteens, hotels & bars then it can get a regular customer. 3.19.4: THREATS
IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People 49

understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.

TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems.

SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the companys products.

High growth of competitor's products. Better facilities provided by the competitor to their distribution this might lead to switch over to slice distribution towards competitors. Different effective promotion schemes of competitors. The main threat to coke is from beverages like tea, coffee & fruit, juices. It is very tough for Coke to get more market share since other competitive brands is already having a very good position in the mind set of consumer.

50

 A larger number of retailers are not having any type of Sales Generating Assets from Coke that results in lesser sales.

3.20: COMPETITORS
The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks. The key competitors in the industry are as follows: PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to Pepsi. Nestl: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people.

Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever since times and people have laid all their trust in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange.

51

3.21: Marketing mix:

3.21.1 Product
The Coca-Cola Company's products include beverage concentrates and syrups, with the main product being finished beverages. The business has over 400 brands of beverages around the world with the main ones being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde. The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres, 1.25 litres, 600mL and 300mL. These are also available in aluminium cans of 375mL. Coca-Cola is the most well known trademark, recognised by 94 per cent of the world's population. The business is very successful and holds a very good reputation.

Marketing strategies for product

The Coca-Cola Company uses marketing strategies to differentiate its product from its competitors to gain a competitive advantage. These are listed in the table below. Marketing strategy Extension/product differentiation In 2002, the Coca-Cola Company extended the products of Coke and developed the new products Coke with lemon and Vanilla Coke. This extension: Responded to consumer demands. Generated sales and profit. Innovation In 2001, Coca-Cola had innovated and developed the introduction of purchasing the company's products from vending machines via SMS messaging. In 2002, the company innovated and came up with a new packaging idea, the Fridge Pack. The Fridge Pack consists of cans packed 2-by-6. This innovation has: Increased consumer awareness and preference. Increased rate of consumption and profitability.

52

3.21.2: Price
The prices of Coca-Cola's products vary according to the brand and the size. The prices of the main products are shown below. Product Size Prices (approx. not on sale prices) Coke, Fanta, Limca, Sprite Coca-Cola soft drinks PowerAde 2L bottle 1.25L bottle 600mL bottle 300mL bottle 375 x 30 cans 375 x 18 cans --- $2.57$1.35$2.10 $2.30$1.30$17.87$12.98$2.80

Pricing Methods/Pricing strategies

The Coca-Cola Company's products are sold in retail stores, convenient stores, petrol stations etc. The pricing methods/strategies are set by those the company sells to. Petrol stations and convenient stores usually sell Coca-Cola products at a fixed price. However, retail outlet uses pricing methods and pricing strategies when selling Coca-Cola products.

Pricing methods
Competition-based pricing Coca-Cola products are usually priced below, above or equal to its competitors' prices.For example, during Easter (2003) sale periods (Coca-Cola vs. Pepsi):Coca-Cola soft drinks 2L - $1.68Pepsi soft drinks 2L $1.87Coca-Cola soft drinks 375 x 18 - $9.98Pepsi soft drinks 375 x 24 - $9.98 Discount price Coca-Cola products are often marked down during sale periods and special occasions. This will: Generate sales Increase profits

Pricing strategies
Meet-the-competition pricing The Coca-Cola products pricing are set around the same level as its competitors. Psychological pricing Most of the Coca-Cola products use this method of pricing. For example, for a pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at $9.98 instead of $10.00.This pricing strategy makes consumers perceive the products to be cheaper.
53

3.21.3: Promotional strategies

Advertising The Coca-Cola Company uses advertising as its main source of increasing consumer awareness. It mainly uses the television. There are many television advertisements on Coca-Cola products. This source allows the company's products to reach a large audience. The latest television advertisement for Coca-Cola soft drinks was the haan haan mai crazy hoon advertisement. The company also uses the radio as another source of advertisement. This is a cheaper source of approach compared to the television. Recently, the company benefited from its involvement in the world's celebrated games such as the Olympics and the FIFA World Cup. Where millions were watching these games, the business had substantial advertising and promotions of the company's brands. The cost of advertising over the past 3 years is shown in Personal selling Every year, The Coca-Cola Company has a highly trained sales team, which acts as a representative of the company to the retailers. This strategy helps to maintain service and product loyalty. It has been demonstrated by the business to be highly effective.

3.21.4: Place of distribution

The Coca-Cola Company sells its products to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. These then distributes them to retail outlets, milk bar and corner stores, restaurants. Wholesalers/distributors Retail/corner stores Restaurants, Consumers

Place strategies
Indirect distribution The Coca-Cola Company uses intermediaries in its distribution. That is, the company does not sell its products directly to its consumers.

54

Intensive distribution The Coca-Cola Company uses the intensive distribution strategy. The business's products are sold in almost every outlet including: retail outlets small shops restaurants petrol stations newsagents schools sports and entertainment venues from vending machines

CHAPTER 4: PRODUCTS ____________________________________________________

The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to bottle or pack the existing drinks. The Coca-Cola Company has a wide range of products out of which the following products are marketed by BBPL: In the Cola Section:

In the Lemon section:

55

In the Orange section:

In the Juice section:

In the Soda Water and Bottled Mineral Water section:

In the Tonic Water section:

56

4.1: PACKAGING DETAILS

Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300 ml returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles

Diet Coke: 330 ml can and 500 ml PET bottle

Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack

Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles

Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET bottles

Schweppes Mineral Water: 750 ml PET bottles

Schweppes Tonic Water: 330 ml can

Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free and 1.5 litre PET bottles.

57

CHAPTER 5: PROJECT On vertical growth

5.1: OBJECTIVE OF THE STUDY The main objective of this study lies in studying and understanding the vertical growth of the coca cola company. And to understand how can I help in vertical growth of the company through this project in which I worked upon a scheme of 3 months. To identify the need and wants of both the retailers and dealers and how well are they being managed by the companys anxious authorities. To find out various reasons which are creating stumbling block in market growth. To identify the wakefulness of the brand and the companys products in the market. To find out the gratification level of customers and problems faced while doing business with coke.

5.2: Research Methodology

I worked upon the topic vertical growth in the scheme of Dukan sajao inaam pao for the project work. The topic was suggested to me by the Marketing manager Nitin Malikof Coca cola beverage private limited. He asked me to conduct a survey at outlets to check where the coke display is proper or not and VC should not be impure. I also checked where the coca cola market is weak as well as high.This scheme is for 3 months from 1 st april 30 june.During these 3 months there were 3 rounds.Ive checked the availability of 12 bottles of 600 ml coke and 10 bottles of 1.25l coke.Apart from the scheme i also checked the availability of other brands or other
58

products of coca cola packwise as well as brandwise.In the final round those outlets who have attractive display of coke were selected for top display prizes and according to their marks provided by us theyll get free liquid also. For this survey I took the help from MDs of different areas. I went ahead for the research. In order collect samples during my survey I planned to take samples at random because in this method of sampling any unit of population can be taken at random. In my research the retailers of lucknow comprises the universe. Therefore they are the one who constitute as the main source of information to me.

5.3: Sample size for survey

The survey was done in about 200 shops including E&Ds, groceries and convenience.

5.4: Scope of the study

1. By this study company can know its growth. 2. This study helps the company to know their actual position in the market. 3. This study also helps in this scheme.

5.5: Method of data collection

I collect the data by the market survey.

5.6: Areas which Ive covered

HAL Indra nagar I Indra nagar II Aminabad Charbagh
59

Rakabganj Mawaiya Koyla mandi Raja bazaar Chaupatiya Campwell Road

5.7: TYPES OF EXPANSION

Expansion can be done both vertically and horizontally and for this different questionnaires were for both existing and new retailers.

5.7.1: vertically expansion

It means increasing the existing outlets capacity of sales. There are following techniques used in vertical expansion: RED (Right Execution Daily) PJP (Pre Journey Planner) Pre Sell

5.8: Market observation Retailers Response A-Management Problem

company doesnt support dealers/retailers No regular visit from the sales people. Dealers/retailers are annoyed with the sales representatives. Less stock delivery after being ordered. (But some times I observed that distributors were giving ordered stock but the retailers were not ready to take that much stock due to lack of money, place or some other reasons.) 5. Services are very poor. 6. Billing problem. 1. 2. 3. 4.
60

7. Replacement problem(Time consuming and due to negligence).

B-Market picture
1. No direct letter is given to the retailers regarding the schemes introduce by the company. 2. No proper supply of each flavour 3. Poor delivery of stock against order.

5.9: Findings and analysis

5.9.1: Analysis of 200 ml packwise:-

60% 40% 20% 0%

200ML
49% 33% 47%

28%

COKE
Graph 1: Analysis of 200 ml packwise

FANTA

LIMCA

MAZA

61

200 ml is the RGB pack wise is selling these days, It is been seen that it was available in all brands in almost 25-50% as you can see in this graph 1. It is widely available at every outlet.

5.9.2: 600 ML pack wise:-

600ML
25% 20% 15% 10% 5% 0% 23% 16% 14% 17%

COKE
Graph 2: 600 ML pack wise

FANTA LIMCA

MAZA

62

600 ml is the PET which is the part of our scheme (Dukan sajao inaam pao).Due to this scheme it is available in all the outlets but comparatively its availability is low. Generally it is between 10-25%.

5.9.3: 1.25 L pack wise:-

1.25 L
20% 17%

15%
10% 5% 0% MAZA
Graph3:1.25Lpackwise

The 1.25 L pack is very rarely available in the outlets and the only 1 brand I found in this pack i.e. Maaza. so all the brand should be provided to the retailers in this pack.

63

5.9.4: 2 L pack wise

2L
20% 10% 0% COKE
Graph 4: 2 L pack wise

16% 10% 3% FANTA LIMCA

Now a days 2 L pack is more considered as home consumption pack and it has started taking place of 1.25 L. Because of quantity factor consumers also focus on this pack for home consumption. But due to the low availability it is unable to give good sale. So the demanded quantity should be supplied.

64

5.9.5: Brand wise:-

60% 40%

COKE
49% 23% 10% 200 ML 600 ML 2L

20%
0%
Graph 5: availability of coke

Coke is the brand product of the company. It covers a very good market & all packs are available across the market. According to those outlets where I visited almost 49% of 200 ml 23% of 600 ml & 10% of 2 L were there.

65

5.9.6: LIMCA:-

LIMCA
30% 20% 10% 28% 14% 3% 200 ML 600 ML
Graph 6: availability of Limca

0%
2L

Limca is a most preferred product in summers but the concerned area is only 200 ml.

66

5.9.7: FANTA:40% 20% 0% 200 ML

Graph 7: availability of Fanta

33%

FANTA
16% 16%

600 ML

2L

Fanta is getting tough competition from MIrinda because of which the visibility is low.

5.9.8: MAAZA:-

50% 0%

47%

MAZA
17% 16%

200 ML
Graph 8: availability of Maaza

600 ML

1.25 L

67

Maaza is one of the favourable mango juice. Its availability is easily seen in all packs. Though the most acceptable pack is 200 Ml.

5.9.9: Tetra pack:-

40% 20% 0%
Graph 9: availability of Tetra Pack

TETRA
29%

Tetra pack is very rarely available in the market.

5.9.10: Kinley:-

68

KINLEY
20% 10% 0% 15%

Graph 10: availability of Kinley

Kinley is almost 155 available at outlets.

5.9.11: Division of channels of 56 outlets:-

Division in channels Of 56 Outlets

13 20 15 E&D 2 E&D 1 Convinience

Grocery
Chart 1: Division of channels of 56 outlets

As per the 56 outlets where I visited 13 outlets of E&D 2, 15 outlets of E&D 1, 20 outlets of convenience, 8 outlets of grocery.

69

5.9.12: Sale of 20 outlets:236

Sales of 20 outlets
200 ML 2236 600 ML 1.25 L 2L

181

884

Chart 2: Sale of 20 outlets

According to my survey the sale of 200 ml RGB was 2236, 600 ml PET was 884, 1.25 L was 181, 2 L was 236 RS.

5.9.13: Contribution of coca cola in total sales of 20 outlets 8 6 4 2 0 10%-20% 20%-30% 30%-40% 40% & above 4 4

Chart 3: Contribution of coca cola in total sales of 20 outlets

There were 4 outlets where coca cola contributes 10-20 % in total sales, in 7 outlets 20-30%, in 4 outlets 30-40%, and in 6 outlets 40% & above.
70

5.9.14: Coke VPO in 20 outlets

COKE VPO(ANNUALY) IN 20 OUTLETS

8
6 4 2 0 DIAMOND
Chart 4: Coke VPO in 20 outlets

6 4

7 3

GOLD

SILVER VPO SLAB >800 500-799 200-499 <200

BRONZE

CUSTOMER TYPE DIAMOND GOLD SILVER BRONZE

71

There were 4 outlets of diamond category, 6 outlets of gold category, 7 outlets of silver category and 3 outlets of bronze.

5.10: SIX CRITERIAS TO FORM A NEW OUTLET

1. Outlet already owns electric chilling equipment of any type-: This is necessary to open an outlet which much has its own chilling equipment because initially company can not provide a new cooler. So, its preferable that he starts his business with his own chilling equipment and as business grows company can provide him cooler. Company also provides OYA refrigerators at reduced price from market. (For rural areas Ice Box, Outlets location and daily sales is kept in mind while giving preference to SGA). 2. Outlet is already selling other companys soft drinks This criterion ensure that outlets is suitable for the business in soft drinks, it has demand for soft drinks and can also sell coke products. The only things required is to solve the problems and finalize the agreement. 3. Outlet is on the main road or has 2 adjacent roads The shop must be easily reachable for our salesman, else it would affect the economies of scale and it will not be a profitable business to go on with. 4. There are no other outlets selling soft drinks within 150 steps in any direction from that outlet This is done to create particular population cluster at one point only to prevent the local competition among coke outlets. 5. Outlet is listed as part of the list of non-dealers submitted by Nielsen

72

AC Nielsen has provided us a list of potential outlets in Lucknow, if our target outlet is in the list it must be approached without considering any other criteria. 6. It is an outlet stocking branded FMCG products. (Products in the range of Rs. 20 and above) This is very important criteria to ensure that the outlet keeps branded product and can spend some money to purchase a branded product. The targeted outlet must meet at least 2 criteria out of 6 mentioned above; if the outlet does not meet above criteria it will not be a profitable outlet.

5.11: STEPS FOR TARGETING THE NEW RETAILERS:Before targeting a new outlet (customer), we have to prepare physically and mentally and following sets were followed: Take Initiative Deal with objections Profit story Any other quandary Sustain relations

Take Initiative:- we personally contact the retailer. As a representative from

coke we tell about the company, the project range, about the profit margins, offers, schemes etc.

Deal with objections:-here retailer puts his objections and we have to tackle
them very carefully, some common objections raised are as:-

73

1. Your business is NOT very money-spinning? Answer Our products have Good Margin in the range of 7%-15%, higher than most of the products you sell. Our products are well known and have a faster rotation which will result in higher earnings for you. We have a wide range of products tooffer which will help you cater to large number of customer. We ensure business round the year by activating your outlet and product promotions.

2. The nearby outlet is selling soft drink. Why should I sell? Answer Would you not like to make more profit? Our product is usually purchased on impulse and can be bought along with other products you sell. There are products sold in nearby outlet that is available in your outlet as well. So why not soft drinks.

3. How will you service my outlet? Will I get stock I want? Answer
We have a trained salesman who services outlets in your area. He will visit your outlet twice in a week. Our products have shelf life so we would take extra care so as not to supply you more stocks.
74

 Our superior distribution system and processes will ensure you to get the required stocks in time.

Profit story we explained to the outlet the profit story; we keep in mind that
investment should be told on daily basis and profits in long term. Example- Investment of Rs. 910 will add more than Rs.16000 to the yearly profit of the retailer if he sells only 2 packs of 2lts soft drink (9*2+2 free) daily. (As C.P is Rs. 455 & S.P is Rs. 495 for 2lt. pack so, profit is Rs. 40 on 1 pack so, on 2 it will be Rs.80 per day i.e. Rs. 2400/month and for peek season (3 months- April, May & June) in which sale is suppose to be Rs. 2400*3= Rs. 7,200 & Rs. 14,400 for whole year (Rs. 7,200 for next 9 months.) Substrate electricity bill (Rs. 8 per unit, approx daily Rs. 16 so yearly 16*365=Rs. 5,840. Rs. 14,400 (Profit) - Rs. 5,840 (electricity bill) + Rs. 7,920 (Discount as free 2 600ml bottles with 2 packs, so profit = Rs. 44 per day, Rs. 1,320 per month, for peek season Rs. 3,960 (Rs. 1,320*3) & for whole year (Rs. 3,960 + Rs. 3,960 (for next 9 months)) = Rs. 7,920)= Rs. 16,480. This amount of profit is on only 2 2lt. pack & it will surely increase if he sells complete product range.

Any other quandary- If the retailers are having any problem we provide them
with best optimal solution. Example- If he doesnt have display item we will provide him with display racks, hangers, wall painting etc.

75

Sustain relations- we assure him the good supply of stock and good service
quality that will be provided by the company. We take his contact no. and address for delivery of goods and for further references.

5.12: INTANGIBLE ELEMENT

In this element we make sure the availability of the product to the retailer, to do this we have to inform the respective salesman of that particular area about the outlets location, and thus stock required. I also make sure that the product must be delivered on time at the outlet. To increase sales on the existing outlet or new outlets we have to adopt vertical expansion strategy (VMS), In VMS there are 3 tools used, Pre sell- By this demand of the stock by a particular retailer is calculated and required stock is provided at the outlet, within time. PJP (Pre Journey Planner) we make a time schedule for approaching the outlet for delivering the product. R.E.D- Right Execution Daily is the survey method that company started earlier. For the survey of R.E.D., Company had hired the people from A.C. NIELSON one of the best survey company. This survey gets done once or twice a month. R.E.D. is the set of norms divided into outlet wise.

76

5.12.1: About the R.E.D survey

The survey has being conducted to check the cooler management, availability of products, display etc. In short to cross check ground level work of related employees of coke.

5.13: OTHER GENERAL FINDINGS

Pricing of products as 200ml for Rs. 8 & 600ml for Rs. 22. It becomes difficult for the retailer to pay back the balance money. Competition with local drinks like- fruit juice, lemon water, sharbat, lassi & tea. Most of the retailers are having problem with timing and frequency of van. Dealers should increase the frequency or add more vehicle were required. Impurity of coke Visi coolers. Brand order is not maintained in the coolers. The marketing strategy of coca cola is better than its main competitors. The sales promotion techniques like- discount to monopoly retailers & schemes on products is better than the competitors. The market share of coke products is higher than the other products. Thumps-up is the leading brands of coca cola in different region. Sale of a product is largely based on display. I found the proper display of products in racks & in coolers. Retailers play an important role while selling products as they can divert the desire of a customer by providing same thing of other brands. Found many good outlets that want visi coolers from coca cola.

Also found dead and useless coolers.

77

 Some retailers complain about the service & repair of coolers. Retailers want if company wants to change scheme daily delivery people should come with written orders from concerned authorities as they are cheated. The most popular flavor in the market is Thumps-up. From the coca cola products Thumps-up and the Pepsi products Dew is the highest selling in the market. Coca cola is the market leader in overall market. In the case of the packaged drinking water Aquafina (Pepsi) is selling more than Kinley (coke). I have found that a retailer gives more preference to the coca cola products like Thumps-up, Maaza, Sprite, Limca, and Fanta. Sales have increased after locating visi cooler outside of outlet. If retailers complained regarding discounting and trade scheme then they are not responded properly. There is a communication gap in distribution channel so retailers are not getting advantages of discounting & trade scheme.

5.14: Suggestions & Recommendations: Many complaints of retailer doesnt listen by a company. So it should be taken into consideration. Company doesnt provide all stock. So it should be deliver on time as well as much required by the retailers. Customer grievances are also not properly listened by the merchandiser which effects hold of the customer with the company. Coca cola need to view its intermediaries in the same way that it view its end user

78

 Company can keep the retailers happy by paying regular visit to them and also ask them to continuously monitor the consumer and their problem. The company should clearly communicate what it wants from its retailers in the way of market coverage, market development and market information. Coca cola must periodically evaluate its channel performance against standards such as sales, average inventory level customer delivery time

5.14.1: It can be achieved by various ways: The quality of interaction between company officials and retailers should be improved. Scheme should be made such that customers and retailers both get benefited through the scheme. Monthly meetings may be arranging to access the performance of poor makers. This will give them a sense of responsibility.

5.15: SIGNIFICANCE OF STUDY

5.15.1: To the researcher:
It gave a chance to use the conceptual knowledge in actual environment and prepares the researcher to use the knowledge for better in his future endeavors. It helped in the assessing the factors, which influenced the retailers purchasing and selling products to the consumer from coca cola. The study is essential for the researcher in partial fulfillment of MBA curriculum. The study gave the researcher the experiences to conduct survey.

79

5.15.2: To the company:

Cold drinks companies are facing a great competition nowadays. Consumers are very much aware and curious about safety products, services, brands and other upcoming products. This study provides an insight to the company that what kind of strategies must be adopted in order to sell more products to consumers and also satisfying them.

5.15.3: To the others:

The study gave an insight into various aspects of the Beverage companies, discussed in this study. One can easily come to know about what is happening in Beverage companies in the current environment. How they make attraction of retailers & consumer mind.

5.16: THE 3AS STRATEGY WAS FOLLOWED:This strategy is for increasing numbers of retailers and is based on the belief that consumers will buy our products if they are Available, Affordable and Acceptable. The 3As is coca cola underlying strategy for meeting its goal to reach increasing numbers of consumers. How does coke position its limited resources to help meet its best. A brief explanation of these 3As is as follow:-

80

Availability:Some of the way in which the coca cola company hopes to increase availability of its product include improved or innovative packaging, dispensing system, distributions system, and marketing.

Affordability:The ways to address affordability include pricing decisions, as well as resources management. To make its product available at a price affordable to the consumer. Continually processes more efficient and therefore more cost effective.

Acceptability:Making coke brand and its product line the beverage choice for any occasions depends on a variety of strategies to reach the target audience. The common strategies bespoke to effect acceptability were though sponsorships, promotion youth market activities, community programs, and other activities.

5.17: FOCUS ON AVAILABILITY OF PRODUCTS IN OUTLET

There is big difference between the availability of products in market & outlets. Coca cola want that their product displayed in each outlet in market after than it put on outlets.

81

5.18: FOCUS ON VISIBILITY OF COKE PRODUCTS IN OUTLETS

The aim of coca cola is that its product should be visible for the customers so company gives to retailers racks to display items. Now a days the company is giving visi coolers to retailers for visible their chilled product in market for more sales. Extra focus was given on monopoly outlets and pre-selling concept.

CHAPTER 6: SOME IMPORTANT POINTS 6.1: Benefit of installing a visi cooler: Attractive presentation of products. Consumers convenience easier access to the product. Increase in sales and income. When consumer see the product he willing to buy it. It fills the consumers want and willingness. The salespersons easily come to know that what is in the cooler and what would be the demand of the retailer.

6.2: Benefits of install a cooler outside the outlet: Large income. More consumers will buy beverages from shop. JO DIKHTA HAI VO BIKTA HAI. Increase in selling space. Outside cooler arouses more consumers interest and increase sales through good beverage exposure.
82

 Outside outlet, it enlarges the amount of consumers visiting outlets. Easier access to chilled product triggers the consumers purchase impulse. Effective use of shop space. Attractive and convenient form of beverage presentation. Complimentary installation and services.

6.3: Benefits of setting up menu boards with combo: Transaction value increases (meal + beverage) and as a result, raises trade turnover and income. Attractive offer for the consumers. Combo visualization shortens consumers decision making time. Seeing saving communication consumers perceive combo as promotion and buy them more willingly. Combo price is prominently visible to the consumer.

6.4: Benefits of setting up hanging rack

Easier access to product for consumers. Easier product merchandising. Product in order and visible. Selling space enlargement using small outlet space. Placed on consumers rout will trigger impulse so that a lot of consumer will buy beverages in soaps thus increasing transaction value.

6.5: Benefits of setting up warm display

Attractive presentation of products in coolers. Consumers convenience easier access to the product.
83

 Increase in sales and income. When consumer sees the product he will be willing to buy it. Less time spend by the shop staff in filling up the products. It fills the consumers want & willingness. Seeing saving communication consumers perceive display as promotion and buy them more willingly.

Questionnaire 1Q1. Type of Outlet (a) General store (c) Sweet shop (b) Pan shop (d) canteen

Q2. Which brand of soft drinks you deal in? (a) Coca cola (c) Both (b) Pepsi (d) Others

Q3. Which companys signage you have in your outlet? (a) Coca cola (c) Both (b) Pepsi (d) No signage

Q4. Which companys visi cooler you have in your outlet? (a) Coca cola (c) Both (b) Pepsi (d) Mixed

Q5. Which company have better distribution network? (a) Coca cola (b) Pepsi
84

(c) Both

(d) Others

Q6. Which is the most preferred size of the bottle by customer? (a) 200ml (c) 1.25L Questionnaire 2Q1. Name of Outlet:__________________________________ Q2. Location:_______________________________________ Q3. Life span of business:_____________________________ Q4. Total revenue per day:_____________________________ Q5. Criteria no.s (6 criterias for a new outlet) of the retailer._ Q6. Deal with beverages, packaged juices and packaged water_ (a) yes (b) No (c) Not all (b) 600ml (d) 2L

Q7. If yes, which brands? (a) Pepsi (b) Coca cola (c) Parle (d) Dabur

(e) Any Others___________________ Q8. Retailers VPO(Volume per Outlet) (a) Coke____ (b) Pepsi____ (c) For Other____

Q9. How often do you order?_____________________________ Q10. If you do business with coke, give reasons for keeping it.

85

(a) Brand Value (d) Good Supply (f) Good service quality

(b) Better scheme (c)High demand (e) High profit margin (g) Any Other_________

Q11. Any problem do you face while doing business with the Coke? (a) Training & Frequency of van (c) Sales mans attitude (b) Sales mans ability (d) Delay in orders

(e) Complete information of daily schemes (f) Delivery mans professionalism (h) Any Other____________________________________ Suggestions, if any:_____________________________________________________________ ___________________________________________________

________________ Signature Dated:-//2013

86