CONTENT

S.NO

TOPIC

PAGE NO.

1.

INTRODUCTION

2.

COMPANY PROFILE

15

3.

RESEARCH METHODOLOGY

33

4.

SWOT ANALYSIS

35

5.

FINANCIAL REPORTS

44

6.

LESSONS LEARNT

49

7.

BIBLIOGRAPHY

59

CHAPTER-1

PROFILE OF THE FIRM/COMPANY

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. Coca-Cola was first introduced by John Smyth Pemberton, a p h a r m a c i s t , i n t h e ye a r 1 8 8 6 i n A t l a n t a , G e o r g i a w h e n h e c o n c o c t e d c a r a m e l - c o l o r e d s yr u p i n a t h r e e - legged brass kettle in his backyard. He first distributed the product by c a r r yi n g i t i n a j u g d o w n t h e s t r e e t t o J a c o b s P h a r m a c y a n d c u s t o m e r s 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. C o c a - C o l a 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 reveals its formula to the Government and reduces its equity stake as r e q u i r e d u n d e r t h e F o r e i g n R e g u l a t i o n Act (FERA) which governed the o p e r a t i o n s o f f o r e i g n c o m p a n i e s
3

i n I n d i a . I n t h e n e w l i b e r a l i z e d a n d 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. 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 5.5lakh people was conducted in a span of 30 days across major cities in order t o give the product the required marketing push and to

r e c o g n i z e t h e prospective consumers and their opinion in order to develop and market the p r o d u c t in a better way in the near future. The

m e t h o d o l o g y u s e d i n studying and understanding the perceived views of consumers towards the product was SAMPLING.

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-C o l a Company

b e g a n b u i l d i n g i t s g l o b a l n e t w o r k i n t h e 1 9 2 0 s . N o w 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. T h e C o c a 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 h a r d t o s e l l t h e p r o d u c t s m a n u f a c t u r e d b y t h e C o m p a n y. T h i s u n i q u e worldwide system has made The Coca-Cola Company the worlds premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,
5

more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. The Company aims at increasing share owner value of over time. It accomplishes this by working with its business partners to deliver s a t i s f a c t i o n and value to consumers through a worldwide system of superior brands a n d preferences on 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.

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 t o r e v a m p t h e i r p r o d u c t , m a r k e t i n g , d i s t r i b u t i o n a n d c u s t o m e r s e r v i c e 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

l i b e r a l i z a t i o n a n d g r o w t h o f t h e I n d i a n 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 n u m b e r o f n u c l e a r f a m i l i e s a n d t h e g r o w i n g n u m b e r o f w o r k i n g c o u p l e s resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's g r o w i n g a w a r e n e s s a n d t h e n e e d t o m e e t c h a n g i n g r e q u i r e m e n t s 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 2003budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they g e n e r a l l y s e l l i n l a r g e n u m b e r s a n d s o the cumulative profit on such products can be large. Unlike s o m e i n d u s t r i e s , s u c h a s a u t o m o b i l e s , 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 m a n n e r irrespective of global market dip, because they generally s a t i s f y r a t h e r 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 b i g g e s t 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

( T i s s u e s , Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble. Household synthetic Care-F a b r i c detergents), wash (Laundry cleaners soaps and

Household

(Dish/Utensil/Floor/Toilet

cleaners),Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Irma and Rickets Colman. Branded and Packaged foods and beverages-Health beverages, S o f t d r i n k s , S t a p l e s / C e r e a l s , B a k e r y p r o d u c t s ( B i s c u i t s , B r e a d s , 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; H i n d u s t a n L e v e r N e s t l e , C o c a - C o l a , C a d b u r y, P e p s i a n d Dabur.

Li mited,

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

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

NONALCOHOLIC

CARBONATED

NONCARBONATED

NON-COLA

COLA

NON-COLA

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so a s t o c a t e r t h e r i g h t p r o d u c t t o t h e r i g h t p e r s o n . T h e d i f f e r e n t w a ys o f segmenting it are as follows: Alcoholic, non-alcoholic and sports beverages Natural and Synthetic beverages In-home consumption and out of home on premises consumption. Age wise segmentation i.e. beverages for kids, for adults and f o r 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. b e v e r a g e s are a luxury and that beverages have to be consumed

occasionally. These two perceptions are the biggest challenges faced by the b e v e r a g e 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.

10

Consumer education is a must to bring out benefits of beverage consumption relaxation, whether in terms of health, taste,

stimulation, refreshment, well-being or prestige

r e l e v a n t t o t h e 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 economic

11

HISTORY
Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to 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 d r i n k t h a t w a s p r o c l a i m e d d e l i c i o u s a n d r e f r e s h i n g , a t h e m e t h a t continues to echo today wherever Coca-Cola is enjoyed. Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested t h e 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. Handpainted 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 o n 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
12

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 Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, J o h n Pembertons former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, t h r e e years after The Coca-Cola Companys incorporation, Mr. Candler announced in his annual report to share owners that Coca-Cola is n o w drunk in every state and territory in the United States. As demand for Coca Cola increased, the Company quickly outgrew i t s 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

13

commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

MANIFESTO FOR GROWTH VALUES:

Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being: LEADERSHIP: The courage to shape a better future PASSION: Committed in heart and mind INTEGRITY: Be real ACCOUNTABILITY: If it is to be, its up to me COLLABORATION: Leverage collective genius INNOVATION: Seek, imagine, create, and delight QUALITY: What we do, we do well

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: a responsible global citizen that makes a difference.
14

COMPANY PROFILE
HINDUSTAN COCA-COLA BEVERAGESPRIVATE LIMITED (HCCBPL) ABOUT THE COMPANY Coca-Cola was the leading soft drink brand in India until 1977, when it left r a t h e r than reveals its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act (FERA) which governed t h e operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26 th October 1993 after a gap of 16 years, with its launch i n A g r a . 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 Parleys 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, Gold spot, Limca and M a a z a . W h i c h w e r e f l o a t e d b y P a r l e , a s t h e s e p r o d u c t s h a d a c h i e v e d a strong consumer base and formed a strong brand image in Indian market during the reentry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company. I n t h e n e w l i b e r a l i z e d a n d d e r e g u l a t e d e n v i r o n m e n t i n 1 9 9 3 , C o c a - C o l a 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 t h a t , t h e Hindustan Coca-Cola Holdings would divest 49% of its shareholding in
15

favor of resident shareholders by June 2002.C o c a - C o l a i s m a d e u p o f 7 0 0 0 local e m p l o ye e s , 500 managers, over 6 0 manufacturing locations, 27

Company Owned Bottling Operations (COBO), 1 7 F r a n c h i s e e O w n e d B o t t l i n g Operations (FOBO) and a network of 29.Contract Packers that facilitate the manufacture process of a range of products for the c o m p a n y. I t a l s o h a s a s u p p o r t i n g d i s t r i b u t i o n n e t w o r k 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 10tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24%g r o w t h s e e n i n u r b a n I n d i a . B e t w e e n 2 0 0 1 a n d 2 0 0 3 , t h e p e r c a p i t a 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 R s . 5 p e r b o t t l e . T h i s n e w market accounted for over 80% of In dias new Coca-Cola drinkers. A t C o c a - C o l a , t h e y h a v e a l o n g s t a n d i n g b e l i e f t h a t everyone who touches their business should benefit, thereby inducing them t o u p h o l d t h e s e v a l u e s , e n a b l i n g t h e C o m p a n y t o a c h i e v e s u c c e s s , recognition and loyalty worldwide.

16

MISSION
To create consumer products, services and communications,

c u s t o m e r s e r v i c e a n d b o t t l i n g s ys t e m s t r a t e g i e s , p r o c e s s e s a n d t o o l s i n o r d e r t o create competitive advantage and deliver superior value to; Consumers as a superior beverage experience Consumers as an opportunity to grow profits through the use o f finished drinks Bottlers as an opportunity to grow profits in volumes Bottlers as a trademark enhancement and positive economic valueadded. Suppliers as an opportunity to make reasonable profits when creating r e a l value-added in an environment of system-wide team

w o r k , flexible business system and continuous improvement Indian society in the form of a contribution to economic and social development. \

17

QUALITY POLICY
To ensure customer delight, we commit to quality in our thoughts, deed sand actions by continually improving our processesEvery time.

O R G A N I Z A T I O N S T R U C T U R E O F C O C A - C O L A I N INDIA

Chief Executive Officer

Vice President Supply Chain

Officer Chief Finance

Human Resource Director

Vice President

Regional Vice President (North)

Regional Vice President (Central)

18

FIGURE 3: ORGANIZATION STRUCTURE IN COCA-COLA, INIDA

Regional Vice President

AGM/AOD Unit 1. AGM/AOD Unit 2. AGM/AOD Unit 3.

AGM/AOD Unit 4.

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.

19

FIGURE 4: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

MANUFACTURING UNIT OF HCCBPL

The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest plant and one of the bottling operations owned by the company. The Plant has one PET line which has the capacity of yielding 209 bottles, per minute, two RGB (Returnable glass bottles) lines which yields 600 bottles per minute each and one Juice line which yield 155 bottles per minute. It caters to the whole of South Karnataka through a network of more than 80 distributors. There are three depots in Bangalore; North Depot, East Depot and Mega Depot.

Manufacturing Plant

Sales and Distribution Operations

Distributors

Outlets

Outlets
20

FIGURE 5: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

MANUFACTURING PROCESS AT HCCBPL

FIGURE 6: MANUFACTURING PROCESS

21

The manufacturing of the products of Coca-Cola involves the f o l l o w i n g 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

O n c e b o t h t h e w a t e r a n d t h e f i n a l s y r u p a r e r e a d y, t h e y a r e both mixed together and sent to the carbonator section where C a r b o n 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 lines 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

22

DISTRIBUTION NETWORK
HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the c i t i e s . The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them. A typical distribution chain at HCCBPL would be: Production---Plant Warehouse---Depot Warehouse---Distribution Warehouse--Retail Stock ---Retail Shelf ---Consumer The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed a n d w e l l organized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm. DISTRIBUTION ROUTES The various routes formulated by HCCBPL for distribution of products are as follows: Key Accounts: The customers in this category

collectively contribute a large chunk of the total sales o f t h e C o m p a n y . I t basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides

23

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 dines 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 nonavailability of the product. Examples: Departmental stores, Super markets etc.

Immediate Consumption: T h e o u t l e t s i n t h i s r o u t e a r e t h o s e which require stocks on a daily basis. The stocks of products i n these outlets are not stored for future use instead, are exhausted on t h e same day and might run a little into the next day i.e. t h e products are consumed at a fast pace.

Examples: S m a l l s i z e d b a r s a n d r e s t a u r a n t s , e d u c a t i o n a l 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.

24

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 d i s t r i b u t i o n e l e m e n t s ( S a l e s , d e l i v e r y, m e r c h a n d i s i n g a n d l o c a l a c c o u n t management) Merchandising: M e r c h a n d i s i n g m e a n s c o m m u n i c a t i o n w i t h t h e consumer at the point of purchase to convey product benefit, value a n d Q u a l i t y. S a l e s p e o p l e a n d d e l i v e r y p e r s o n n e l b o t h h a v e t h i s responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.

DEPARTMENTS

INVOLVED

IN

THE

D I S T R I B U T I O N 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 i n v o i c e s , arranges logistics and ship products, co-ordinates with

distributors for collections and monitors distribution stocks and their set-up.
25

Finance Department: I t c h e c k s c r e d i t l i m i t s a n d a p p r o v e s s a l e s orders in compliance with the credit policy followed by the firm, records collections from distributors,

periodically

r e c o n c i l e s 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 b a s i s , ensures physical control over load out area and updates warehouse stock records in a timely manner

26

COMPETITORS TO HCCBPL
The competitors to the products of the company mainly lie in the n o n - alcoholic beverage industry consisting of juices and soft drinks. The key competitors in the industry are as follows: PepsiCo: T h e P e p s i C o c h a l l e n g e , t o k e e p u p w i t h a r c h r i v a l , t h e Coca-Cola Company never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew, a n d S l i c e . C o l a i s n o t t h e c o m p a n y ' s o n l y b e v e r a g e ; P e p s i C o s e l l s 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-Colas it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market b y N e s t l e p r o v i d e s a c o n s i d e r a b l e a m o u n t o f c o m p e t i t i o n t o t h e 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 t o f i z z d r i n k s . T h e f l a v o r e d m i l k p r o d u c t s a l s o h a v e b e c o m e substitutes to the products of the company due to growing health awareness among people.
27

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 t h e C o m p a n y a n d t h e p r o d u c t s o f t h e C o m p a n y. A p a r t f r o m f o o d products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give strong competitions Maaza and the latest product Minute Maid Pulpy Orange.

28

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 h a s a w i d e r a n g e o f p r o d u c t s o u t o f w h i c h t h e f o l l o w i n g p r o d u c t s a r e marketed by HCCBPL: In the Cola Section:

In the Lemon section:

In the Orange section:

29

In the Juice section

In the Soda Water and Bottled Mineral Water section:

In the Tonic Water section:

30

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 2litre 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.

31

OBJECTIVE OF THE STUDY

1. To know the consumer preference towards pulpy orange. 2. To know the perception of consumers towards pulpy orange.

T h e m a i n o b j e c t i v e o f t h i s s t u d y l i e s i n s t u d yi n g a n d u n d e r s t a n d i n g t h e consumers perception and opinion about the latest product, Minute Maid Pulpy Orange, introduced into India, by the Coca-Cola Company. Perception can be defined as intuitive recognition of a truth, aesthetic quality and the way a person sees or understands. In the case of Minute Maid Pulpy Orange, one could define perception as the levels of awareness and acceptance among people towards the product.

32

SCOPE OF THE STUDY

1. Preference of consumers between Minute Maid pulpy orange and Coke. 2. Why people prefer Minute Maid pulpy orange or Coke. 3. Reasons for popularity of a particular drink.

33

RESEARCH METHODOLOGY 1. Research Design-Descriptive Research

Descriptive research d esign includes surveys and fact findings enquiries of different kinds. The major purpose of descriptive research is description of the state of

affairs as it exists at present. The main characteristics of this method are that the researcher has no control over the variables.

2. Sources of data collection Primary data- Its the data which is collected for
the first time.E.g. Like questionnaires, interviews etc.

Secondary

data -Its

the

data

which

already

exists.E.g. journals, publications, etc.

3. Sample size 200 consumers

4. Sample area DELHI

34

CHAPTER-2

SWOT ANALYSIS OF THE COMPANY

35

STRENGTHS
DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time o f c o n s u m p t i o n a n d t h e a m o u n t o f s a l e s yi e l d e d b y a p a r t i c u l a r customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 d i s t r i b u t o r s . STRONG BRANDS: T h e p r o d u c t s p r o d u c e d a n d m a r k e t e d b y t h e Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. CocaCola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Inter brand. It was e s t i m a t e d t h a t t h e C o c a Cola brand was worth $70.45billion. LOW COST OF OPERATIONS: The production,

m a r k e t i n g a n d 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

36

WEAKNESSES
LOW EXPORT LEVELS: The brands produced by the company are brands produced worldwide 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. I n 2 0 0 3 , t h e C e n t r e for Science and Environment (CSE), a nongovernmental organization produced India, in by New soft Delhi, drinks said aerated waters in and

manufacturers giants PepsiCo

including

multinational

C o c a - C o l a , c o n t a i n e d t o x i n s including lindane, DDT, Malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. T h e r e f o r e , p e o p l e a b r o a d , a r e a p p r e h e n s i v e a b o u t C o c a - C o l a products from India. SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY T O INVEST AND ACHIEVE ECONOMIES OF

S C A L E : 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 i n v e s t i n t e c h n o l o g i c a l a d v a n c e m e n t s a n d a c h i e v e e c o n o m i e s o f scale

37

OPPORTUNITIES
LARGE DOMESTIC MARKETS: T h e d o m e s t i c m a r k e t f o r t h e 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 s o f t 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. EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them t o f o r e i g n 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 c o n s i d e r a b l e 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 c a p i t a i n c o m e t h e r e b y 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.

38

THREATS
IMPORTS:A s I n d i a i s d e v e l o p i n g a t a f a s t p a c e , t h e p e r c a p i t a income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. TAX AND REGULATORY SECTOR: T h e t a x s ys t e m i n In d i a i s accompanied by a variety of regulations at each stage on the consequence from production to

c o n s u m p t i o n . W h e n a l i c e n s e i s issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a p r o b l e m . R e n e w i n g o r u p d a t i n g a license every now and then is difficult. 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; p o o r r o a d s ; p o w e r p r o b l e m s ; a n d inaccessibility to conventional advertising media. All these

problems might lead to a slowdown in the demand for the companys products.

39

DATA ANALYSIS 1. What do consumers prefer between MINUTE

MAID PULPY ORANGE and COKE?

MINUTE MAID PULPY ORANGE COKE

BASIS MINUTE MAID PULPY ORANGE COKE TOTAL

NUMBER OF PEOPLE

PERCENTAGE 40 20% 160 80% 200 100%

40

2. Why do consumers prefer COKE above M I N U T E M A I D PULPY ORANGE??

Taste Fizzy Cheaper Variety of Flavors Easy availability

Taste Fizzy Cheaper Variety of Flavors Easy availiblity

Basis Taste Fizzy Cheaper Variety of Flavours Easy availability Total

Number of people 30 40 20 50 20 160

Percentage 18.75% 25% 12.50% 31.25% 12.50% 100%

41

3. Why do consumer prefer MINUTE MAID PULPY ORANGE? Fresh Juice Healthy drink Non fizzy Good pulp

MINUTE MAID PULP ORANGE Fresh juice Healthy drink Non fizzy Good pulpy drink

Basis Fresh juice Healthy drink Non fizzy Good pulpy drink Total

Number of people 24 9 5 2 40

Percentage 60% 22.50% 12.50% 5% 100%

42

4. Why dont consumer prefer MINUTE MAID PULPY ORANGE?

Less availability Costly Bitter taste Non awareness.

MINUTE MAID PULPY ORANGE Less availablity Costly Bitter taste Non awareness

Basis Less availability Costly Bitter taste Non awareness Total

Number of people 50 60 40 10 160

Percentage 31.25% 37.50% 25% 6.25% 100%

43

CHAPTER-3 ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY

44

BALANCE SHEET
Balance Sheet Period Ending Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill
45

31-Dec-2010 31-Dec-2009 31-Dec-2008

8,379,000 2,820,000 4,430,000 2,650,000 3,162,000 21,579,000 7,585,000 14,727,000 11,665,000 15,244,000 2,121,000 72,921,000

6,959,000 2,192,000 3,758,000 2,354,000 2,226,000 17,551,000 6,755,000 9,561,000 4,224,000 8,604,000 1,976,000 48,671,000

4,701,000 278,000 3,090,000 2,187,000 1,920,000 12,176,000 5,779,000 8,326,000 4,029,000 8,476,000 1,733,000 40,519,000

9,132,000 9,376,000 18,508,000 14,041,000 4,794,000 4,261,000 314,000 -

6,921,000 6,800,000 13,721,000 5,059,000 2,965,000 1,580,000 547,000 -

6,152,000 6,531,000 305,000 12,988,000 2,781,000 3,401,000 877,000 -

Total Liabilities Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets Currency in USD.

41,918,000 880,000 49,278,000 (27,762,000) 10,057,000 (1,450,000) 31,003,000 4,094,000

23,872,000 880,000 41,537,000 (25,398,000) 8,537,000 (757,000) 24,799,000 11,971,000

20,047,000 880,000 38,513,000 (24,213,000) 7,966,000 (2,674,000) 20,472,000 7,967,000

46

INCOME STATEMENT
Income Statement Period Ending Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares Currency in USD.
47

31-Dec-2010 35,119,000 12,693,000 22,426,000 13,977,000 8,449,000 5,502,000 14,976,000 733,000 14,243,000 2,384,000 (50,000) 12,834,000 11,809,000 11,809,000

31-Dec-2009 30,990,000 11,088,000 19,902,000 11,671,000 8,231,000 289,000 9,301,000 355,000 8,946,000 2,040,000 (82,000) 7,605,000 6,824,000 6,824,000

31-Dec-2008 31,944,000 11,374,000 20,570,000 11,774,000 350,000 8,446,000 305,000 7,877,000 438,000 7,439,000 1,632,000 5,807,000 5,807,000 5,807,000

CASH FLOW
Cash Flow Period Ending 30-Dec-2010 30-Dec-2009 6,824,000 1,236,000 608,000 (564,000) 8,186,000 (1,993,000) (2,152,000) (4,000) (4,149,000) (3,800,000) (854,000) 2,363,000 (2,000) (2,293,000) 576,000 2,320,000 30-Dec-2008 5,807,000 1,228,000 1,224,000 148,000 (734,000) (165,000) 63,000 7,571,000 (1,968,000) (240,000) (155,000) (2,363,000) (3,521,000) (493,000) 29,000 (3,985,000) (615,000) 608,000

Net Income 11,809,000 Operating Activities, Cash Flows Provided By or Used In Depreciation 1,443,000 Adjustments To Net Income (4,140,000) Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities 370,000 Total Cash Flow From Operating Activities 9,532,000 Investing Activities, Cash Flows Provided By or Used In Capital Expenditures (2,215,000) Investments (679,000) Other Cash flows from Investing Activities (1,511,000) Total Cash Flows From Investing Activities (4,405,000) Financing Activities, Cash Flows Provided By or Used In Dividends Paid (4,068,000) Sale Purchase of Stock (1,295,000) Net Borrowings 1,848,000 Other Cash Flows from Financing Activities 50,000 Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents Currency in USD. (3,465,000) (166,000) 1,496,000

48

CHAPTER-4 LESSONS LEARNT

49

The Sampling activity was a good first step into the area of Marketing and Sales. It gave good amount of exposure mainly because after being trained, trainees were given an opportunity to carry out the process ourselves. It helped in developing a considerable amount of convincing skills, because, it took a lot of it to convince the store managers to give us cooler space to cool the product for 2 hours and even more to convince the customers into tasting the product and to get reviews from them. A good understanding of the market was accomplished as around 700 people were spoken to and t h a t g r o u p c o n s i s t e d o f a v a r i e t y o f c u s t o m e r s . T h i s e v e n h e l p e d i n t h e polishing of communication skills, a musthave to survive and make it big in t h e p r e s e n t w o r l d . I t e v e n g a v e a g o o d u n d e r s t a n d i n g o f b e h a v i o r o f customers when placed in different situations. It was a good opportunity to work on the skill of patience, as a large number of customers were to be dealt with. It helped in developing the kind of relations one needs to uphold the corporate world and it helped in building up the right attitude. As all the points in the above mentioned paragraph, are the must-have skills for anyone in the field of Marketing and Sales, the training period was a good experience and a good stepping stone into the real business world.

50

FINDINGS
The reasons given by consumers for having liked the product were: It tastes like fresh orange juice. It is a good thirst quencher, especially in the summer season. It is not bitter like other readymade juice products that are available in the market. It h a s g o t r e a l p u l p i n i t a n d w h e n o n e c a n f e e l t h e p u l p a n d t h i s makes the drink tastier It is a non-carbonated drink. It is as sweet as natural oranges that one buys in the market. Due to the natural orange pulp, the juice is healthier. It is a ready-to-drink fruit juice. The reasons given by consumers for having disliked the product were: It is too sweet. It is too watery i.e. the consistency is not good. Fresh fruit juice is preferable.. It was a product of the Coca-Cola Company and ever s i n c e t h e controversy, consumers are a little apprehensive about the products of that company.

51

SUGGESTIONS/RECOMMENDATIONS
Taking the above analysis into consideration, the following points can be regarded for further marketing of the product: Advertisements should target the entire family, mainly because it has been observed that irrespective of age and gender, more than 75% of the people have liked the product and look forward to buy it again .Advertisements should highlight the main features of the product that i s t h e e x i s t e n c e o f pulp (which is already made prominent in

Advertisements); it should lay emphasis on the health and nutrition value of the product and also on the fact that it is as good as fresh fruit juice. Due to the current prices, an eyebrow raiser for some, the product could be sold in packs of 2 or more and there could be a p r i c e reduction. At Modern Trade Outlets, where shoppers buy in bulk, Minute Maid Pulpy Orange could be given away free, if the customer buys goods worth more than a certain price line. This strategy is already being carried out at the Food World outlets. It could be introduced even at Fab Mall, Subhiksha, Spencers Daily, Big Bazaar etc. New flavors can be introduced into the market as early as possible because around 30% of the consumers were eager to know if the
52

drink would come in more flavors and another 10% of the consumers d i d n o t l i k e O r a n g e j u i c e s o t h e y w e r e a n t i c i p a t i n g t h e p r o b a b l e launch of other flavors. Smaller packs of Minute Maid Pulpy Orange like tetra packs of 200-300 ml can be introduced as, when a customer wants a small amount of the drink just to quench his thirst for that moment, he would not w a n t t o b u y a bottle containing 400 ml or 1litre of the juice.

Therefore, smaller packs of the product do come in handy.

53

CONCLUSION
The Sampling activity was a good first step into the area of Marketing and Sales. It gave good amount of exposure mainly because after being trained, trainees were given an opportunity to carry out the process ourselves. It helped in developing a considerable amount of convincing skills, because, it took a lot of it to convince the store managers to give us cooler space to cool the product for 2 hours and even more to convince the customers into tasting the product and to get reviews from them. A good understanding of the market was accomplished as around 700 people were spoken to and t h a t g r o u p c o n s i s t e d o f a v a r i e t y o f c u s t o m e r s . T h i s e v e n h e l p e d i n t h e polishing of communication skills, a musthave to survive and make it big in t h e p r e s e n t w o r l d . I t e v e n g a v e a g o o d u n d e r s t a n d i n g o f b e h a v i o r o f customers when placed in different situations. It was a good opportunity to work on the skill of patience, as a large number of customers were to be dealt with. It helped in developing the kind of relations one needs to uphold the corporate world and it helped in building up the right attitude. As all the points in the above mentioned paragraph, are the must-have skills for anyone in the field of Marketing and Sales, the training period was a good experience and a good stepping stone into the real business world. As a future line of research, the Marketing and Sales Department at HCCBPL could offer projects like: Analysis Impact of advertisements on the Sales of a p a r t i c u l a r product.

54

Analysis of major trends in the Indian Non-Alcoholic Beverage market. Analysis of changing trends in the market for Coca-Cola products. Formulation of Market penetration strategies.

55

Questionnaire Marketing strategy of coke

1. Do you like soft drinks?

Yes No

2. How often do you consume soft drinks?

Rarely Often Never Always

3. Where are you used to drink soft drinks?

At home At work In parties Other

4. What sort of drinks do you prefer?

Aerated drinks Juice Alcoholic Other

56

5. What would you choose between aerated and non aerated drinks?

Aerated Non- Aerated

6. What would you choose between Coca Cola and Minute maid pulpy orange?

Coca Cola Minute maid pulpy orange

7. If you choose Coca cola above Minute maid pulpy orange then why? (Can tick more than one)

Taste Fizz Cheap Variety of flavors All the above

8. If you choose Minute maid pulpy orange above Coca cola then why? (Can tick more than one)

Fresh juice Healthy drink Non fizzy Good pulp content All the above

9. Have you ever tasted other Coca cola products? (Aerated drinks) other than Coca cola.

No Yes, which brand do you prefer?

57

10. Are you sensitive to price when u buy a drink?

No A little bit A lot

11. Which of the following aerated drinks have you tried? ( Can tick more than one)

sprite limca 7up mirinda thums up pepsi fanta all the above

12. Which of the following fruit based drinks have you tried? ( Can tick more than one)

mazza slice frooti tropicana LMN appy

58

all the above

BIBLIOGRAPHY
WEBSITES: http://www.cybernoon.com http://news.bbc.co.uk http://www.thecoca-colacompany.com http://www.coca-cola.com http://www.ko.com http://www.hoovers.com http://www.wikipedia.org

BOOKS: Tull & Hawkins; Marketing Research, Prentice Hall of India, 2000. Gupta, S.L., Sales & Distributions Management, Excel Books, 2003

59