FINAL SIP

‘COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABAD’S NORTH REGION’

TABLE OF CONTENTS

Chapter TopicPage no.

TITLE PAGE

CERTIFICATE I

DECLARATION II

ACKNOWLEDGEMETS III

1 INTRODUCTION 2

2 RESEARCH M ETHODOLOGY 6

3 INDUSTRY PROFILE 9

4 COMPANY PROFILE 22

5 THEORICAL ASPECTS OF THE STUDY 47

6 RESERCH FINDINGS AND CONCLUSION 56

7 RECOMMANDATION 75

8 LEARNINGS 76

BIBLIOGRAPHY 77

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CHAPTER 1

INTRODUCTION

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Soft drinks are non-alcoholic water-based flavored drinks that are optionally sweetened, acidulated and carbonated. Some carbonated soft drinks also contain caffeine; mainly the brown-colored cola drinks.

Globally, carbonated soft drinks are third most consumed beverages. Per capita annual

consumption of carbonated soft drinks is nearly four times the per capita consumption of fruit

beverages (Source: Data from the Beverage marketing Corporation, as reported by the Canadian

Soft drink Association). Soft drink consumption is growing by around 5% a year, according to

the publication Global Soft drinks, published by the Zenith International. Total

Volume reached 412,000 million liters, giving a global per capita consumption of around 67.5

liters per year.

Major Players-Global

The global soft drink industry is highly concentrated, being largely controlled by the two

multinational companies; Coca Cola and PepsiCo. Coca Cola leads the carbonated soft drink

market in most countries in the world with 60% of the global cola market with its flagship Coca-

Cola brand. Other notable players include Cadbury Schweppes.

Indian Scenario

Market

According to government estimates soft drinks marketed in India were 6540 million

bottles in March 2001. The market growth rate, which was around 2-3% in ‘80s, increased to 5-

6% in the early ‘90s and is presently 7-8% per annum. Most of the sales of soft drinks take place

during summers while just 5-6% of total sales take place in winters. In summers the high season

lasts for 70-75 days, which contributes more than 50% of the total yearly sales. In terms of

regional distribution cola drinks have main markets in metro cities and northern states of UP,

Punjab, Haryana etc. Orange flavored drinks and sodas are popular in southern states. Western

markets have preference towards mango-flavored drinks.

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Non-alcoholic beverage market can be divided into fruit drinks and soft drinks. Soft drinks

available in glass bottles, aluminum cans, PET bottles or disposable containers can be divided

into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks and

non-carbonated drinks include mango drinks. Soft drinks can also be divided into cola products

and non-cola products. Cola products in Indian include brands like Coca- Cola, Diet Coke,

Thumps Up Pepsi Cola, Diet Pepsi, etc. Cola drinks account for nearly 61-62% of the total soft

drinks market in India. Non-Cola products account for 36% the total soft drink market (Source: India

Info line Sector Report).

Major Players in India

The two global majors PepsiCo and Coca-Cola dominate the soft drink market in India.

Coca-Cola, which had winded up its India operations during the introduction of the FERA

regime, re-entered India 16 years later in 1993. Coca-Cola bought local brands-Thumps Up,

Limca and Gold Spot from Parle Beverages and soft drink brands Crush, Canada Dry and Sport

Cola from Cadbury Schweppes in early 1999. Pepsi started a couple of years before Coca Cola,

in 1991 has bought over Mumbai based Duke’s range of soft drink brands. There are conflicting

figures about their market share. Some estimates put the market share of PepsiCo to be higher

and some put the market share of Coca Cola to be higher. However, the soft drinks segment,

dominated by these two companies, accounted for Rs 6,247 crores in sales.

1.2 Work Summary

23rd March, 2012 Orientation with Mr. Sapan Patnaik, Sales Manager at city office.

26th March, 2012 Route visit with salesman.

27th-29th March, 2012 Collection of data of outlets who deals with cold drinks at Aadalaj,

New C.G.Road and Motera.

30th-31st March, 2012 Making New customer at New C.G. Road

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2nd April, 2012 Revisited to outlets of Motera

3rd-4th April, 2012 Making New customer at Motera

5th April, 2012 Visited at Motera’s Outlets and collected the information about the

discount offered by Pepsi

6th- 10th April, 2012 Retail Market Survey(This survey is all about the customer

satisfaction towards Coke service)

11th -16th April, 2012 Making new customer at Motera

17th -18th April, 2012 Collection of data of outlet at I.O.C Road.

19th -20th April, 2012 Route visit with salesman.

21st -24th April, 2012 Visited the outlets of Pepsi and collected the information about the

discount provided by Pepsi at Aadalaj, New C.G.Road and Motera.

10th -14th May, 2012 Making new customer at Motera

15th -17th May, 2012 MIT(Most Important Task) has done in Motera with Mr. Sapan

Patnaik.

18th- 26th May 2012 Making new customer at Motera.

28th May -2nd June

2012

Making new customer at New C.G.Road

4th-11th June 2012 Collecting data and making new customer at I.O.C Road and

Chandkheda.

12th -13th June 2012 Collecting data and making new customer at D. Cabin.

14th -15th June 2012 Collecting data and making new customer at Janatanagar

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CHAPTER 2

RESEARCH METHODOLOGY

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2.1 Research Objective:

Primary objective

To make New Customer (retailer) for Coca Cola Company.

Secondary objective

To know the retailers perception towards Coca Cola.

To study the distribution system of Coca cola.

To know the merchandising at Coca Cola.

To try to solve the problem of retailer by knowing their problems..

To understand the RED strategy.

To understand the manufacturing process of coca cola.

2.2 Scope of the study

This report is limited to survey area in Ahmadabad-Aadalaj, New C.G.Road, Motera,

I.O.C Road, Chandkheda, D.Cabin and Jantanagar.

2.3 Research plan:

Type of Research: Descriptive

Data collection:

Primary data collected: Personal interview, Questionnaires

Secondary data collected: Company’s website, Company’s magazine, Internet

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VPO --> P/D G S B D G S B

Availability of Sparkling 200 ml [Diamond/Gold (Cola + 3) ; Silver/Bronze (Cola + 2)] - Min 6 bottles of each SKU Chilled

20 20 23 28 23 23 28 28

Availability of Sparkling CAN (330ml) or Xpress (350ml) [Diamond/Gold (Cola +1) - Min 4 CANs/ 6 bottles of each SKU Chilled

3 3

Availability of Sparkling Mobile (600 ML) [Diamond (Cola + 3), Gold (Cola + 2), Silver/ Bronze (Cola + 1)] - Min 4 bottles of each SKU Chilled

10 10 10 14 10 10 14 14

Availability of Fridge Pack 1.25 ltr [Diamond/Gold (Cola +2), Silver/Bronze (Cola +1)] - Min 2 bottles of each SKU. Chilled if the VC size >=9 caser

5 5 5 5 5

Availability of chilled brand Coke: [Min 3 facings of RGB/CAN/Xpress/Mob with min 4 bottles/CANs per facing] {Facings of any 1 pack}

5 5 5 5 5 5 5 5

Availability of Juice RGB 200ml or 250ml - [Min 6 bottles Chilled] 5 5 5 5 5 5 5 5

Availability of Juice Tetra 200ml - [Min 6 packs Chilled] 3 3 3 3 3 3 3 3

Availability of Juice Mobile [Diamond / Gold (2 flavours)) ; Silver/Bronze (1 flavour)] - Min 4 bottles of each SKU Chilled

5 5 5 5 5 5 5 5

Availability of Water PET 1 Ltr - Min 2 bottles Chilled 4 4 4 4 4

Chilled Facings of RGB (inside Visi-Cooler) - Lead Cola, Flavour and Maaza (Min 3 facings of each in Diamond/Gold, Min 2 facings of each in Silver/Bronze). Should have Min 4 bottles per facings

5 5 5 5 5 5 5 5

Availability Total 65 65 65 65 65 65 65 65

RED Norm for 2011E&D Type-1 & Convenience

Hi+Med Inc Class Low Inc Class


Research instruments: Personal Interview, Observation, Survey

2.4 Sample design:

Sample size: 345

Sampling type: Convenient

Sampling tool for collecting information: Personal Interview, Observation

2.5 Data Analysis

Tools: SWOT Analysis, Porter’s five force model and PESTEL Analysis.

2.6 Limitations

Surveying requires special skills, sending the questionnaire at dealership may bias the

respondent.

Non-cooperative approach and rude behavior of some of the respondents.

Personal experiences and biases are there.

This report is purely limited to retailer’s perspective.

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CHAPTER 3

INDUSTRY PROFILE

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3.1 INTRODUCTION TO THE BEVERAGE INDUSTRY

Food & beverage companies are faced with market challenges driven by the slow industry

growth, margin pressures and a marketplace crowded with new product introductions, which

makes it difficult to differentiate and build brand value. Many food & beverage companies

realize that an efficient supply chain can provide a competitive advantage.

Global market forces are driving the continual evolution of the food and beverage industry.

Consolidation, changing consumer preferences and increasing government regulations are

dramatically impacting manufacturing and business strategy. In this fiercely competitive

marketplace, you must offer a greater variety of products to meet consumer demand. At the same

time, you must consistently and cost-effectively produce high quality products

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.

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The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India,

Coke and Pepsi have a combined market share of around 95% directly or through franchisees.

Campa Cola has a 1% share, and the rest is divided among local players. Industry watchers say,

fake products also account for a good share of the balance. There are about 110 soft drink

producing units (60% being owned by Indian bottlers) in the country, employing about 125,000

people. There are two distinct segments of the market, cola and non-cola drinks. The cola

segment claims a share of 62%, while the non-cola segment includes soda, clear lime, cloudy

lime and drinks with orange and mango flavors.

The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as

Nepal's) compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines 173 and

Mexico 605. The industry contributes over Rs 12 bn to the exchequer and exports goods worth

Rs 2 bn. It also supports growth of industries like glass, refrigeration, transportation, paper and

sugar. The Department of Food Processing Industries had stipulated that 'contains-no-fruit-juice'

labels be pasted on returnable glass bottles. About 85% of the soft drinks are currently sold in

returnable bottles. There was a floating stock of about 1000 mn bottles valued at Rs 6 bn. If the

industry were to abide by the new guidelines, it would have to invest in new bottles, resulting in

a cost outgo of Rs 5 bn. Neither Coke nor Pepsi is in a position to invest such a large amount.

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.

The industry estimates that the beverage market should grow at twice the rate of GDP

growth. The Indian market should have, therefore, grown by at least 12%. However, it has been

growing at a rate of about 6%. In contrast, the Chinese market grew by 16% a year, while the

Russian market expanded at almost four times the rate of growth of the Indian market.

Soft and aerated drinks were considered products for the middle class and the affluent.

That segregation is no more valid. Soft and aerated drinks are consumed by all except those who

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cannot afford to buy any drink. An NCAER study says that 91% soft drink sales are made to the

lower, middle and upper middle classes. The soft drink industry has been urging the

government to categories aerated waters (soft drinks) equitably with other consumer products of

mass consumption and remove special excise duty.

Here the demand of soft drink has articulated in graph witnessing past and future data.

Exhibit 1: Demand of soft drink

(Source: Ministry of food and beverage industry)

Leading Brands

Coca Cola, Thums Up, Limca, Fanta, Gold Spot, Rim Zim, Maaza, Pepsi, Mirinda, 7'UP,

Mangola, Slice, Duke's, Lemonada, Crush, Canada Dry, Campa.

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Exhibit 2: market Growth rate of Beverage industry in India

Market Growth Rates

1990-91 - 1996-97 9.4%

1996-97 - 2001-02 7.8%

2001-02 - 2006-07 6.5%

2004-05 - 2009-10 5.4%

2009-10 - 2014-15 3.5%

Sensitivity Coefficient 5.2%

(Source: Ministry of food and beverage industry)

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3.2 PORTER’S FIVE FORCE MODEL

Rivalry Condition:

Two main players

Coca cola

Pepsi

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Duopoly competition

The whole spectrum of market is divided only on two parts. One is in the hand of

PepsiCo and second is in the hand of Coke. There are many more players like Parle agro but still

is in the nascent stage. The main headache is fountain soda walah who are catering the market on

the bases of low cost. Both are attacking on each other and hampering the profitability.

Substitute Product:

There are many more products available in the market which can easily substitute Coke and its

wide range of product. The first is fountain soda Welch’s now a day sprawled like anything and

directly attacks this branded beverage.

Existing substitute products available in the market:

Tea Coffee

Juices Beers

Wine Bottled water

Milk Powered drink

Sport drink Fountain soda

The main reason behind these substitutes is low price. The popularity of non branded products

has created a buzz in the mind of customers through WOM

Threats of new Entrants:

Barriers to entry:

Established brand of Coke and Pepsi

Both the companies have intimate relationship with their retail channels and would be

able to defend their positions effectively through discounting or other tactics

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New comers need to overcome the tremendous marketing muscle and market presence of

Pepsi, Coke, and some others.

The soft drink inter-brand competition act of 1980, ratified strategy, making it impossible

for new bottlers to get started in any region where existing bottlers operated.

Power of Suppliers:

Bargaining power of suppliers is low. There are main two inputs used.

1) Sugar 2) Packaging

Sugar:

o Readily available in the open market

o Its production is low

Packaging:

A lot of major supplier

Abundant supply of inexpensive aluminum

Power of Buyers:

Five principle channel

Food store

Fountain

Mass merchandisers

Convenient stores

Vending machine

Bargaining power of buyers is high for fountain market and mass merchandisers. They

will have strong negotiation power for bulk merchandising. The franchise holder may have legs

on the head of company because of less profitability. Bargaining power is very low in vending

machine because they have already a high profit margin.

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3.3 PESTEL ANALYSIS

PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It is a

tool that helps the organizations for making strategies and to know the EXTERNAL environment

in which the organization is working and is going to work in the future.

Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholic drinks

also need to undergo this PESTLE analysis to know about the external environment (especially

their competitors and the opportunities available) in order to keep pace with the fast growing

economy.

Political Analysis:

Political factors are how far a government intervenes in the operations of the company. The

political factors may include tax policy, trade restrictions, environmental policy, laws imposed

on the recruiting labors, amount of permitted goods by the government and the service provided

by the government.

Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and

Drug Administration), it is an agency in the United States Department of Health and Human

Services. Its headquarters is in USA and it has started opening offices in foreign countries as

well. The job of the FDA is to check and certify whether the ingredients used in the

manufacturing of Coca-Cola products in the particular country is meeting to the standards or not.

In Coca-Cola the company takes all the necessary steps to analyze thoroughly before introducing

any ingredients in its products and get prior approval from the FDA. The company also has to

take into consideration of the regulation imposed by FDA on plastic bottled products.

Apart from FDA the other political factors includes tax policies and accounting standards. The

accounting standards used by the company changes from time to time which have a significant

role in the reported results.

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The company also is subjected to income tax policies according to the jurisdiction of various

countries. In addition to this, the company is also subjected to import and excise duties for

distribution of the products in the countries where it does not have the outsourcing units.

Moreover, if there is any unrest or changes in the government and any kind of protest by the

political activists may decline the demand for the products. Also the situations like the unsure

conditions prevailing in Iraq and escalation of the terrorist activities in these areas could affect

the international market of our product. It creates an inability for the company to penetrate in the

markets of such countries.

Economic Factors:

The economic factors analyze the potential areas where the firm can grow and expand. It

includes the economic growth of the country, interest rates, exchange rates, inflation rates, wage

rates and unemployment in the country.

The company first analyzes the economic condition of the country before venturing into that

country. When there is an economic growth in the country, the purchasing power among people

increases. It gives the company or the marketer a good chance to market the product. Coca-Cola,

in the past identified this correctly and rightly started its distribution across various countries.

The net operating profits for the company outside US stands at around 72%. Along with this the

company uses 63 various types of currencies other than US Dollar. Hence there is a definite

impact in the revenues due to the fluctuating foreign currency exchange rates. A strong and weak

currency tends to affect the exporting of the products globally.

Interest rates are the rate which is imposed on the company for the money they have borrowed

from government. When there is an increase in the interest rates, it may deter the company in

further investment as the cost for borrowing is higher. Coca-Cola uses derivative financial

instruments to cope up with the fluctuating interest rates. Inflation and wage rate go hand in

hand, when there is an increase in the inflation the employee demand for a higher wage rate to

cope up with the cost of living.

This comes as additional cost for the company which cannot be reflected in the price of the final

product as the competition and risk in this segment is higher. This is a threat in the external

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environment faced by the company. From the above explanation it is clearly seen that the

economic factors involves a major impact in the behaviour of the company during various

economic situations.

Social Factors:

Social factors are mainly the culture aspects and attitude, health consciousness among people,

population growth with age distribution, emphasis on safety. The company cannot change the

social factors but the company has to adjust itself to the changing society. The company adapts

various management strategies to adapt to these social trends.

Coca-Cola which is a B2C company, is directly related to the customer, so social changes are the

most important factors to consider. Each and every country has a unique culture and attitude

among the people. It is very important to know about the culture before marketing in a particular

country. Coca-Cola has about 3300+ products in their stable, when entering into a country it does

not introduce all the products. It introduces minimum number of products according to the

culture of the country and the attitude of the people.

Consumers and government are becoming increasingly aware of the public health consequences,

mainly obesity which is the second social factor in the soft drinks industry. It inspired the

company to venture into the areas of Diet Coke and zero calorie soft drinks. The problem of

obesity is taken seriously among the youngsters who like to maintain a good physique. Hence

Coke introduced dietary products for those youngsters who can enjoy Coke with zero calories. In

one of the study it is said that “Consumer from the age groups 37 to 55 are also increasingly

concerned with nutrition”. Since many are aware, they are concerned with the longevity of their

lives. This will affect the demand of the company in the existing product and also is an

opportunity to venture into new health and energy drinks industry.

Population growth rate and the age distribution is another social factor to be considered. It is

very important because non-alcoholic markets have most of its share from the children and

youngsters. Adults used to celebrate mostly with alcohol. The age distribution of the country

becomes important for the success of the product in a country.

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Technological Factors:

Technology plays a varied role in the soft drinks industry. The manufacturing and distribution of

the products is relatively a Low-Tech business, although the creation of a new product with the

perfect blend and taste is a science (an art in itself).

Technological contributions are most important in packaging. The company relies on their

bottling partners for a significant portion of their business. Nearly 83% of the worldwide unit

case volume is manufactured and distributed by their bottling partners in whom the company

does not have controlling power. Hence it is necessary for the company to maintain a cordial

relation with their bottling partners. If the company do not give ample support in pricing,

marketing and advertising then the bottling industry while increase their short term profits, may

become detrimental to the company.

The advancement in technology in the company has led to: Introduction of new ways for the

availability of Coca-Cola, it introduced general vending machines all over the world. In products

it led to the development of new products like Cherry Coke, Diet Coke etc. The technical

advancement in the bottling industries include, introduction of recyclable and non refillable

bottles, introduction of cans which are trendy, stylish and popular among the youngsters.

Legal Factors

The legal factors include discrimination law, customer law, antitrust law, employment law and

health and safety law. In Coca-Cola the business is subjected to various laws and regulation in

the numerous countries in which they do the business, the laws include competition, product

safety, advertising and labeling, container deposits, environment protection, labour practices.

In the US the products of the company is subjected to various acts like Federal Food, Drug and

Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act, various

environment related acts and regulations, the production, distribution, sale and advertising of all

the products are subjected to various laws and regulations. Changes in these laws could result in

increased costs and capital expenditures, which affects the company profitability and also the

production and distribution of the products.

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Various jurisdictions may adopt significant regulations in the additional product labelling and

warning of certain chemical content or perceived health consequences. These requirements if

become applicable in the future the company must be ready to accept and have necessary

changes in hand for the same.

Environment Factors

These factors include the environment such as the weather conditions and the seasons in which

people prefer to buy cool beverages. Also the company must follow the environmental issues

related to the product manufacturing, packaging and distributing in various countries. It must

adhere to the norms and market the product accordingly. Usage of renewable plastic in the PET

bottles is followed by the company strictly.

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CHAPTER 4

COMPANY PROFILE

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HISTORY OF COMPANY

Birth of refreshing idea

John Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta,

Georgia. It was of 1886 when the pharmacist concocted a caramel-colored syrup in a three-

legged brass bottle in his backyard. He first distributed the new product by carrying Coca-Cola in

a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-

Cola at the soda fountain. Whether by design or accident, carbonated water was teamed with the

new syrup, producing a drink that was proclaimed “Delicious and Refreshing”. Dr. Pemberton’s

Partner and bookkeeper, Frank M. Robinson suggested the name and penned “Coca-Cola” in the

unique flowing script that is famous worldwide today. Mr.Robinson taught the two C’s would

look well in advertising. In 1886 sales of Coca-Cola averaged 9 drinks per day. That first,

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

distinctive color associated with the no 1 soft drink brand ever since. For his efforts, Dr.

Robbinson grossed $50 and spent $73.96 on advertising. By 1891, Atlanta entrepreneur Asia G.

Candler had acquired complete ownership of the Coca-Cola business. Within four years, his

merchandising flair helped expand consumption for $25 million. Robert W. Woodruff became

president of the Coca-Cola Company in 1923, and his more than 6 decades of leadership took the

business to unrivalled height of commercial success, making Coca-Cola an institution world

over.

1894 – A modest start for a Bold Idea

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

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

using a common glass bottle called a Hutchinson.

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

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but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler

focused on fountain sales.

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 (specifically

excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton,

soon joined their venture.

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.

1916 … Birth of the contour bottle

Bottlers worried that the straight-sided bottle for Coca- Cola

was easily confused with imitators. A group representing the

Company and bottlers asked glass manufacturers to offer

ideas for a distinctive bottle. A design from the Root

Glass Company of Terre Haute, Indiana won enthusiastic

approval in 1915 and was introduced in 1916. The contour bottle became one

of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of

the most recognized icons in the world - even in the dark!

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 after their 1923 introduction. A

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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.

1920s and 30s … International expansion

Led by longtime Company leader 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, Peru, Spain, Australia and South Africa. By the

time World War II began, Coca-Cola was being bottled in 44 countries.

1940s … Post-war growth

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

the troops. This followed an urgent request for bottling equipment and

materials from General Eisenhower's base in North Africa. Many of these

war-time plants were later converted to civilian use, permanently

enlarging the bottling system and accelerating the growth of the Company's worldwide business.

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.

1960s … New brands introduced

Following Fanta in the 1950s, Sprite, Minute Maid, 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 DASANI in the 1990s. Today hundreds of other

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

1970s and 80s … Consolidation to serve customers

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As technology led to a global economy, the retailers who sold Coca-Cola 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.

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. And as the century closed, more than $1.5 billion was committed to new bottling

facilities in Africa.

21st Century

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

heritage serves the Company well today as people 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.

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4.2 Mission of the Coca Cola Company

The Mission of the Coca-Cola Company is to increase shareowner value over time.

The Company over accomplished the by working with its business partners to deliver satisfaction

and value to customers an consumers through a worldwide system of superior brands and

services, thus increasing brand equity on a global basis.

4.3 Vision of Coca-Cola Company

To achieve sustainable growth, we have established a vision with clear goals.

Profit: Maximizing return to share owns 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: Being to the world a portfolio of beverage brands that anticipate and satisfy people’s

desires and needs.

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

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

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4.4 ABOUT THE COMPANY

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 required under the Foreign

Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola

re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in

Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft

drink brands of the nation. With access to 53 of Parle’s plants and a well set bottling network, an

excellent base for rapid introduction of the Company’s International brands was formed. The

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

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

a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these

products became a part of range of products of the Coca-Cola Company.

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

into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-

Cola Company. However, this was based on numerous commitments and stipulations which the

Company agreed to implement in due course. One such 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.

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

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

37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and

2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging

of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This

new market accounted for over 80% of India’s new Coca-Cola drinkers. At Coca-Cola, they have

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

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

worldwide.

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4.5 ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN

HCCBPL:

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4.6 MANUFACTURING PROCESS AT HCCBPL

WATER TREATMENT:

We at HCCBPL Varanasi follow a batch treatment which includes coagulation &

flocculation. The method ensures disinfection and settling of all macro impurities and thereafter

it pass to sand, carbon filters to remove off odour ,off colour, off taste, and thus it is strictly

bought in line with the WHO requirements. We are also using state of art –micron filtration

process where the water is filtered up to the extent of 1 micron before it is fed to the process.

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This extensive treatment of water under strict monitoring and sampling for quality leads

to pure hygienic water with the highest quality meeting the Coca-Cola standards.

SYRUP PREPARATION:

Coca-Cola uses highest quality of sugar which is controlled and ensured by its stringent

pre-laid standards, which serves as the strict criteria before acceptance of a lot. To ensure high

quality of syrup, it is subjected to hot treatment wherein it is given a contact time with hyflo and

carbon at elevated temperature. It is then passed through a filter press which removes the carbon

particles and other impurities before it declared fit for concentrate mixing. All this process takes

place under the strict vigil by the quality department which maintains the appropriate records of

the numerous tests carried out in the entire process which makes it a foolproof process.

In the ready syrup tank the pre-decided quantity of concentrate is mixed to the simple

syrup in very strict hygienic condition to yield final syrup. The entire syrup manufacturing area

is maintained under a constant positive pressure which rules out the possibility of any external

particles entering into the process room.

CONTAINER WASHING:

Container has been identified as one of the major critical control point in the entire

manufacturing process & that’s the reason that company has laid some of the very stringent and

full proof systems which ensures Coca-Cola product to be of the highest quality and reflects our

commitment towards delivering the best in class product to the consumers.

The bottles received from the market are loaded on the conveyor by the uncasing

machine and the arrays of the unwashed bottles passes through the four pre-wash inspections

stations which ensures removal of rusty neck bottles, excessively dirty bottles, bottles carrying

foreign matter, foreign bottles. And thus the good bottles pass into the bottle washing machine

which uses intensive mechanical and chemical processes to clean and disinfect the bottles

thoroughly and ensures the bottles to be ready for filling. However as an additional safety, there

is again a post wash inspection station comprising of 4 sub-stations, which ensures removal of

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the chip necked bottles and suspected bottles from the lot. Thus the bottles are subjected to series

of stringent inspections before it is fed to the filler for filling.

MIXING, PROPORTIONING:

Proportioning is basically a process where ready syrup is diluted in a predetermined fixed

proportion with water and carbonated concentrate in to beverage conforming strictly to

company’s norms and specifications. It is carried out by an Italian Machine-MOJONNIER.

FILLING & CROWNING:

The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles

through a rotator machine named FILLER. The bottles are immediately crowned by crowner

(adjacent to the filler) and thereafter bottles passes through the date coding machine which

enable the consumer to be 100 percent sure of consuming a perfectly safe and fresh product.

FINAL INSPECTION:

After date coding, there is once again a final inspection station where light inspectors all

low or high filled bottles and permit only the saleable product to pass through for casing to the

caser machine.

MANAGING THE WASTE WATER:

Production lines maintain the waste water from the bottle washers, Syrup and Filler

rooms. Entire waste water generated is treated at Waste Water Treatment Plant and discharged

through a 800 meters long pipeline specially laid to discharge the treated waste water away from

inhabited areas. Part of this water is being used for gardening purpose within the plant premises.

MARKET & CUSTOMERS:

Once the finished product is ready, it is transported to the distribution centers and then to

retail outlets by way of route trucks. The consumer buys the soft drink from the retailer outlets.

The empty bottles are simultaneously collected by the distribution channels at the time of

dispensing the finished products.

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SUPPLIERS AND OTHER BUSINESS PARTNER:

Other than water and concentrate, bottling operation require sugar, CO2, bottles, crates

and other miscellaneous materials. The Coca-Cola India division has a Supplier authorization

program where suppliers are authorized based on a defined criterion. Environmental

considerations are amongst the critical of these criterions.

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4.7 PRODUCT OF COCA-COLA

In RGB Segment

1. Coca-Cola

Coca-Cola is the most popular and highest-selling soft drink in history, as well as the

best-known product in the world.

Coca-Cola has a truly remarkable heritage. From a humble beginning in 1886, it's now

the flagship brand of the largest manufacturer, marketer and distributor of non alcoholic

beverages in the world.

2. Diet Coke

World's Third Largest Selling Soft Drink

Diet Coke is for those who want plenty of taste but no calories.

Diet Coke is also known as Coke light in some countries

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3. Thumbs Up

Today it is the largest selling soft drink brand in India.

Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely

masculine attitude.

This brand clearly seeks to separate the men from the boys.

4. Sprite

Sprite is the brand that gained most share in sparkling beverages in year 2010.

Present in over 130 countries worldwide.

In India sprite is the second largest brand of soft drinks.

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5. Fanta

Fanta the 'orange' drink

Over the years Fanta has occupied a strong market place and is identified as the "The Fun

Catalyst".

6. Limca

Limca's freshness is like no other- 'lime n lemoni'

Lime 'n' lemoni Limca can cast a tangy refreshing spell on anyone, anywhere.

Derived from 'Nimbu' + 'jaisa' hence Lime Sa, Limca has lived up to its promise of

refreshment and has been the original thirst choice of millions of consumers for over 3

decade.

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7. Maaza

Maaza – the wholesome family fun

Mango. Imagine this delicious fruit, bottled. This is what Maaza is all about.

Maaza- the most loved beverage brand in India. It provides the most authentic experience

of rich, juicy mangoes—anytime, anywhere!

8. Maaza Milky Delite

A lip smacking milky blend of juicy and delicious mangoes.

Perfectly blended and delightfully refreshing, it offers a great taste in every sip.

A taste so irresistible that you will never want to share it with anyone. More so, it is from

Maaza that has been delighting mango lovers for over three decades.

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9. Minute Maid Pulpy Orange

Refreshingly Orange Surprisingly Pulpy!

Minute Maid – one of the world's largest juice and juice drink brands.

10. Minute Maid Nimbu Fresh

Just Like Home-made Lemonade

A lemon drink with no added preservative or colour, Minute Maid Nimbu Fresh offers a

refreshing drinking experience as close to homemade Nimbu Paani as possible in a

packaged format.

Nostalgia in a bottle, Minute Maid Nimbu Fresh offers 'Ghar Ki Yaadon Ka Ras'

(memories of home-made lemonade) in every sip.

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11. Minute Maid® 100% Juice

Coca-Cola India Launched The Globally Successful Minute Maid 100% Juice In The

Country.

Launch further strengthens its diversified product portfolio and will provide more choice

to consumers.

12. Kinley Water

Water you can trust and be truly safe and pure.

Kinley water understands the importance and value of this life giving force. Kinley water

thus promises water that is as pure as it is meant to be.

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13. Kinley Soda

India's no.1 National Soda brand.

With its unique taste and formula Kinley Soda packs quite a punch

14. Burn (Energy Drink)

Launched in North Europe in year 2000.

Burn has expanded over 40 countries over a short 10 years period.

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15. Schweppes

Schweppes was launched in India in 1999 after the international takeover of the brand

from Cadbury Schweppes

Ever since its launch Schweppes is recognized as a mixer that knows its drink the best. It

is available in select towns and channels.

16. Georgia Gold

Introduced in 2004.

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Come and explore the world. From freshly Ground “Bean to cup” Coffee, Quality Tea,

Refreshing chilled Iced Teas and cold coffee.

4.8 FACTORS AFFECTING BUSINESS

Seasonality: Seasonality is one of the most important factors that affect the soft drink

business. Seasonality is primarily influenced either by the weather, or by holidays and

religious festivals. Within the Group, soft drink business has different seasonal cycles

throughout the year.

Service frequency: This is another factor that affects the business. Service frequency is

the time gap between visiting a particular outlet again. Service frequency directly affects

the rotation time which in turn affects the value of business.

Demand pattern for the market: Every product has a different demand pattern and

affects the business.

Price of the product: Price of the soft drinks also affects the business. Due to perfect

competition in soft drink market, price of a product plays a major role in business.

Disposable Income: Disposable Income of the consumers also affects the business of the

soft drink players. A high disposable income of the consumers ensures a high demand for

the products in the market.

Demographic Profile: Demographic profile of consumer also affects the business and

needs to be considered.

Competitor’s Policy: The policies of the competitors also affect the working of the

business of other companies.

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Government Policies: The government policies related to taxation or political

interference also affect the business of the players in the soft drink industry.

4.9 SWOT ANALYSIS

STRENGTH:

The company has got various strengths, which leads the company be a market leader.

Some of the strengths listed below:

A) Strong product line:

The company has got various fast moving products which are going great job in the

market. These soft drinks not only quench thirst but also refresh everyone it touches. One of the

strong brands of the company is Thumps Up, which specially doing well in the Indian market. It

has captured one of the major shares of the soft drink market.

B.) Advertising:

Advertising plays a major in promoting sales of the product. The company has got one of

the best advertising strategies. Appointing film actors, as the brand ambassadors, makes a great

impact on the mind of the customers. The company should try to launch more and more

advertising and sales campaigns to promote sales to the maximum

WEAKNESS:

As no man in this world is a complete man and so are the companies. Every company has

got weakness so as Coca-Cola Company too. Some of the weaknesses which the company

should overcome are as follows:

A.) Distribution network:

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The company has got an average distribution network this is one of the reason why the

company fails to fulfill the demand of the customer at time of peak seasons. It must go for some

more bottling plants and should opt for better distribution channels to increase the sales in the

best possible manner.

B.) Pricing strategy:

The company has got a pricing strategy as there is no certainty of rising or fall of price

during the peak season. This also hamper the sales of the company as the retailers and distributor

get dilemma whether to place the next order or not as increase or decrease in price may hamper

their profit margin and blockage of the goods.

OPPORTUNITIES:

Instead of weakness and threats the company the company has got various opportunities to

which it has to go for. The opportunities for the company are as follows:

A.) Large Market:

As India is said to be one of the biggest market in the world, thus the company survive

for long and can expands to its length and width. Still there are thousands of villages which have

not been covered by soft drink companies. If the company targets the rural market it can easily

make large profits and thus can also satisfy its aim to benefit and refresh the whole nation.

B.)Launch of other brands:

Coca- Cola Company has got more than 300 brands which is running successfully over

the world. Thus it can launch some more brands in the country, after studying the demand and

desire of the people and can deep its roots by winning their minds and hearts.

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THREATS:

Some of the threats which the can face:

(A) Competitors:

One of the strong competitors of the company is Pepsi Co. thus it has to formulate such

strategies which make it to remain one step ahead and give a strong competition to the

competitors.

Some of the other competitor in the path of growth to the company is the local soft drinks

manufacturers who play an active part at the time of peak season. The other local refreshers like

Nimbu Pani, lassi, fruit juice etc. which hampers the sales of the company.

(B) Govt. Policies:

The policies of the government also play a major role for the company. The company can

not perform well or in its own way by violating the rules of the government. Thus if the

government formulates some policies which creates hindrances in the working of the company it

will prove to be one of the major threats.

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CHAPTER-5

THEORETICAL ASPECTS

OF THE STUDY

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5.1 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 cities. The distribution

channels are constructed in such a way that the demand of customers is fulfilled at the right place

and the right time when 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 and well organized distribution system contributes to the efficiency of

the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to

higher profits to the firm.

5.2 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 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, multiplexes, 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.

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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.

5.3 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.

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.

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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.

5.4 Red concept

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

position in the market.

About red

To check the availability of the visi cooler provided by the company to the retail outlets

for their products.

To check the activation in various outlets.

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

There are four major factors to be taken care under RED strategy.

1. Impurity

It means that if Coke has provided visi cooler to some outlet. So, it is need to make sure that no

others company’s product should kept in that visi cooler except Coke’s products.

2. Brand order

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The company has given a brand order to the market developers to arrange the different brands in

a specific order in the cooler. The order should be in such a way-

Thumsup

Coca cola

Sprite

Limca

Fanta

Maaza

Kinley

Pet & Juice

3. Availability

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

According to this market developer has to ensure the availability of the products in the particular

outlet.

4. Activation

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

Glow sign, Shelf display, flanges. Combo boards, Table tops .This boards usually gives to the

E&D outlets .It helps to attract the customers. Rack with header is provided to the grocery stores.

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Activation Elements

Market developer must ensure that all these activation elements must available at all the outlets.

Detail of activation elements must available at GROCERY STORES:

1. WARM DISPLAY RACK

2. SHELF DISPLAY

Shelf display Display of rack visi cooler

Other elements:-

1. Standee 2. Six mobile hanger

3. Visi cooler brand strip 4. Warm display rack

5. Table top rack 6. Tent card

5.5 Types of outlets

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

Volume

Channel

Income group

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1. Volume

There are four types of outlets according to the volume of sales of the outlet-

Platinum - >1500C/s & above per year

Diamond - >800C/s & above per year

Gold - 500-799C/s per year

Silver - 200-499C/s per year

Bronze - <200C/s per year

2. Channel

(A) Grocery store

Grocery (customer profile): Store stocking a variety of regular uses household items. The

channels provide an opportunity for penetration as it propels home consumption.

It includes all kirana stores, juice, departmental stores, supermarkets, provision stores etc.

Necessary Availability - 2 liter and 300ml

(B) Eating & drinking channel 1

Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller dhabas.

These outlets offer multiple opportunities to effect sales as people usually order something to

drink along with food. It includes

- Restaurants - Bars and Pubs

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- Dhabas - Cafes

(C) Eating & drinking channel 2

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

(D) Convenience channel

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

cigarettes, mint, confectionary. It covers STD/ISD phone booths, travel channel etc. small outlets

that mainly sell 200ml or 300ml bottles. They may also sell 600ml.

3. Income group

According to the income group of the area-

Low- Those outlets where low income customer comes.

Medium- Those outlets where medium income customer comes.

High- Those outlets where high income customer comes

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5.6 PJP (permanent journey plan)

(P.J.P. plan): The P.J.P. plan is a day wise schedule of a M.D.(Market Developer) which

contains the names of the outlets to be visited by him coming under the campaign R.E.D. where

the project has to be implemented.

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

initial information of every individual outlet as well as market on a whole. The visit to all the

outlets of that area helped in revealing its market condition. Visiting the outlets clearly showed

the picture of the market situation prevalent in market..

5.7 PRE SALE CONCEPT

This is a new concept by the company. In this concept company takes order one day before and

then delivers the product to each route. So this gives more time to market developer to assure

RED.

This concept has so many advantages-

This gives more time to the market developer for the activation & branding purpose.

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

Presale concept makes assure of more availability of the products in the market.

This concept is easy in processing.

By this concept market developer can arrange the product in better way.

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

towards it.

Does the preseller come to your outlet & clean company’s cooler & arranges the product

properly?

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Chapter 6

Research Findings and

Conclusion

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6.1 SEGREGATION OF OUTLETS

ADALAJ

Interpretation

As per above chart we can see that 52% Outlets are selling only Coke. And 14% outlets are

selling both Coke and Pepsi that’s means 66% of outlets are dealing with Coke whereas only

32% of outlets are selling exclusive. In Total 46% of outlet are dealing with Pepsi. That’s means

Coke has good market share at adalaj.

After having a healthy discussion with retailers of Adalaj it has been conclude that:

There is need to provide products on time.

If we can offer good discount some more outlets can shift to Coca-Cola.

As there is some outlets who deals with Pepsi just due to discount offered by them.

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D. CABIN

Interpretation

As per above chart we can see that 44% Outlets are selling only Coke, whereas only 7% outlet

are dealing with Pepsi. There is huge scope in D.Cabin as 47% of outlet in not dealing with any

kind of soft drinks.

After having a healthy discussion with retailers of D.Cabin it has been conclude that:

There is need to concentrate on D.Cabin.

Retailers are interested in keeping Coke but due to the bad irregular service there were

some outlets that stop selling Coke’s product.

By providing regular service there is scope to increase sale and no. of Coke’s outlet.

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JANTANAGAR

Interpretation

As per above chart we can see that 47% Outlets are selling only Coke, whereas only 5% outlet

are dealing with Pepsi. There is huge scope in Jantanagar as 45% of outlet in not dealing with

any kind of soft drinks.

After having a healthy discussion with retailers of Jantanagar it has been conclude that:

Need to focus on Jantanagar.

Retailers are interested in keeping Coke but due to the bad irregular service there were

some outlets that stop selling Coke’s product.


If we can offer good discount some more outlets will start to coca cola.

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NEW C.G.ROAD (BEFORE)

Interpretation

As per above chart we can see that 32% Outlets are selling only Coke. And 18% outlets are

selling both Coke and Pepsi that’s means 50% of outlets are dealing with Coke whereas 36% of

outlets are selling exclusive Pepsi and in total 54% of outlet are dealing with Pepsi. That’s

means Pepsi has more command at New C.G.Road.

After having a healthy discussion with retailers and observe the market of New C.G. Road

it has been conclude that:

There is huge scope for Coke as the demand is very high of soft drink at New. C.G.Road

Some retailers are not happy with the service and the discount offered by Coca-Cola.


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NEW C.G ROAD (AFTER)

Interpretation

After working around 10 days at New C.G. Road I tried to convert the outlets of pepsi into Coke

and also targeted those outlet which does not dealing with any type of softdrinks and have

potential to sell the Coke.

So, from the above graph we can see that there is 50% of outlets are now dealing with Coke.

Earlier it was only 32%. 20% of outlets are dealing with Coke and Pepsi that’s means in total

70% of market is covered by Coca-Cola.

These are the following steps has taken to convert the outlets:

Tried my best to solve the problem of retailers with help of Sales Executive and Market

Developer.

Company has improved the service.

Company came up with different types of schemes to improve the sale and cover the

market of New C.G. Road.

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MOTERA (BEFORE)

Interpretation

As per above chart we can see that only 15% Outlets are selling only Coke. And 22% outlets are

selling both Coke and Pepsi that’s means only 37% of outlets are dealing with Coke whereas

38% of outlets are selling exclusive Pepsi and in total 60% of outlet are dealing with Pepsi. So

basically Motera is dominated by Pepsi.

After having a healthy discussion with retailers and observe the market of Motera it has

been conclude that:

The Service is very bad. People are interested in keeping Coke but not getting product

regularly that’s why they stop dealing with Coke.

Most of the outlets have pepsi but it can get converted into Coke.

There is huge scope for Coke as the demand is very high of soft drink at Motera

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MOTERA (AFTER)

Interpretation

After working around 25 days at Motera I tried to convert the outlets of Pepsi into Coke and also

targeted those outlet which does not dealing with any type of soft drinks and have potential to

sell the Coke.

So, from the above graph we can see that there is 40% of outlets are now dealing with Coke,

earlier it was only 15%. 27% of outlets are dealing with Coke and Pepsi that’s means in total

67% of market has covered by Coca-Cola.


MIT(Most Important Task) of 3 days has done at motera with Sapan Patnaik G .S.M of

Coca-Cola and Lavanya Hatwaine A.S.M .


Developer.



market of Motera.

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I.O.C ROAD AND CHANDKHEDA (BEFORE)

Interpretation

As per above chart we can see that only 11% Outlets are selling only Coke, whereas there is no

shared outlet. 59% of outlets are selling exclusive Pepsi .So basically I.O.C Road and

Chandkheda is dominated by Pepsi.

After having a healthy discussion with retailers and observe the market of New C.G. Road

it has been conclude that:

Retailers had problem with Distributor.

Most of the outlets have Pepsi but it can get converted into Coke.

There is huge scope for Coke as the demand is very high of soft drink at I.O.C Road and

Chandkheda

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I.O.C ROAD AND CHANDKHEDA (AFTER)

Interpretation

After working around 10 days at I.O.C Road and Chandkheda I tried to convert the outlets of

Pepsi into Coke and also targeted those outlet which does not dealing with any type of soft

drinks and have potential to sell the Coke.

So, from the above graph we can see that there is 52% of outlets are now dealing with Coke,

earlier it was only 11%. 15% of outlets are dealing with Coke and Pepsi that’s means in total

67% of market has covered by Coca-Cola.


MIT(Most Important Task) has done at I.O.C Road with Lavanya Hatwaine A.S.M and

Wasim Sayiad Sales Executive .


Developer.


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market of I.O.C Road and Chandkheda.

6.2 RETAIL MARKET SURVEY OF COCA-COLA OUTLETS

This survey has conducted to understand the satisfaction level of Retailers from Coca- Cola in

regards to:

1) Service

2) SGA (Cooler) Problem

3) Discount Problem

4) Credit Problem

1) SERVICE PROBLEM

Interpretation

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As per the above chart we can see that there are15% of existing customer of Coca-Cola is having

problem of service

2) SGA (COOLER) PROBLEM

Interpretation

As per the above chart we can see that there are 9% of existing customer of Coca-Cola is having

cooler problem.

3) DISCOUNT PROBLEM

Interpretation

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As per the above chart we can see that there are 11% of existing customer of Coca-Cola is

having problem in discount. That means they want more discount.

4) CREDIT PROBLEM

Interpretation

As per the above chart we can see that there are3% of existing customer of Coca-Cola is having

Credit Problem. It means they want product on credit.

Conclusion:

From the above chart we can see that the main problem is Service and discount provided by the

Coke. It has also seen that 9% of retailers is not happy with the cooler.

Coke is needed to provide good service and more discounts to the retailers. Otherwise there is

chance that they will shift to Pepsi.

They need to provide regular service of SGA (cooler).

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6.3 RETAIL MARKET SURVEY OF PEPSI OUTLETS

This survey has conducted to understand Problem of Pepsi retailers with Coca-Cola. So with the

help of this survey they can understand the problem and thry to solve them. And try to convert

them from Pepsi to Coca-Cola. For that they have used certain tools:

1) Service Problem

2) Discount Problem

3) Past Conflict

4) Credit Problem

1) SERVICE PROBLEM

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Interpretation

As per the above chart we can see that there are 36% of Pepsi Outlets having a problem with

service of Coca-Cola and that’s why they are with Pepsi.

2) DISCOUNT PROBLEM

Interpretation

As per the above chart we can see that there are 14% of Pepsi Outlets having a problem of

discount with Coca-Cola and that’s why they are with Pepsi.

3) PASTCONFLICT

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Interpretation

As per the above chart we can see that there are 4% of Pepsi Outlets having past conflict with

Coca-Cola’s distributor and that’s why they are with Pepsi.

4) CREDIT PROBLEM

Interpretation

As per the above chart we can see that there are 1% of Pepsi Outlets having credit problem with

Coca-Cola and that’s why they are with Pepsi.

Conclusion:

From the above chart we can see that the main problem is Service and discount provided by the

Coke. It has also seen that credit is not a problem.

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If Coke with provide good service and come up with some good scheme then they can easily

convert some outlet from Pepsi to Coke.

N.C (NEW CUSTOMER)

When company opens a new counter of Coca-Cola whether converted from Pepsi to Coke or to

those outlets which are not selling any type of soft drinks or we convinced them to sell Coke is

become N.C for company.

We had made 60 N.C in which 25 at Motera, 17 at I.O.C Road, 4 at Chandkheda, 10 at New

C.G.Road, 2 at Jantanagar and 2 at D. Cabin.

LIST OF N.C

SL. NO. NAME OF OUTLETS AREA

1 Sri Umiya Parlor Motera

2 Amba Store Motera 3 Shriji Ice Cream & Parlor Motera 4 Chatrapal Store Motera 5 Aanand Traders Motera 6 Villege Pool Motera 7 Savariya Bhojanalay Motera 8 Bapasitaram Pan Place Motera 9 Radhe Parlour Motera

10 Shri Ji milk Palace Motera 11 Nakoda Dairy Parlour Motera 12 the Spice root Motera 13 shiv shakti chavana Motera 14 prakash Store Motera 15 Bhavishay Kirana store Motera 16 Umiya Dairy Motera 17 Vahanvati Kirana store Motera 18 Kodiyar Pan Parlor Motera 19 Grukrupa Tea Stall Motera

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20 Joyti Super Market Motera 21 Chehar Pan Parlour Motera 22 Shri Ambika Super Market Motera 23 Om Dairy Motera 24 Brahinani Kirana Motera 25 Shivganga Soda Shop Motera 26 Pappu Pan Parlour I.O.C Road27 Mukhavas pan Parlour I.O.C Road28 Shrinath Dairy parlour I.O.C Road29 Aastha Amul Parlour I.O.C Road30 Krish Novelty I.O.C Road31 Saini sweets and dairy parlour I.O.C Road32 Sundha kirana Store I.O.C Road33 Ganesh Kirana store I.O.C Road34 Pruthavi Pan Parlour I.O.C Road35 Vaishali Pan Parlour I.O.C Road36 Jay Ambe Tea Stall I.O.C Road37 Minal Chavana I.O.C Road38 Shree Nimbeshwer Chawana and sweet mart I.O.C Road39 Khetlaji Kirna Store I.O.C Road40 Chamunda Dairy Parlour I.O.C Road41 Shree ji dairy Parlour I.O.C Road42 Shree Chamunda Dairy Parlour I.O.C Road43 Joyti pentry Service Chandkheda 44 Shreeji Parlor Chandkheda 45 shoping center Chandkheda 46 Dhanlaxmi Kirana Store Chandkheda 47 Harsh Provision store New C.G. Road 48 Raj Kirana store New C.G. Road 49 Dolby Pan Place New C.G. Road 50 Swad Panjab New C.G. Road 51 Karunavati Vadapav and dabeli New C.G. Road 52 raj laxmi kirana store New C.G. Road 53 Radhaswami Parlour New C.G. Road 54 shobaram ice cream New C.G. Road 55 Ramdev Kirana Store New C.G. Road 56 Shoper's Point New C.G. Road 57 Ashok Pan Parlour Jantanagar58 Savan Pan Parlour Jantanagar59 Ramvijay Provision Store D.cabin

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60 Mahakali Soda Shop D.cabin

FINDINGS AND CONCLUSION

Demands of Coca- Cola products are very high.

Coca-Cola is market leader.

Distributor is not concentration much on small outlets. They are just concentrating on

sales not market share.

Services in this area are very bad especially at Motera.

Schemes are not reaching to the retailers.

Schemes of Pepsi are more than Coke.

Around 10% of outlets are having cooler problem.

Credit facilities are not available by Distributor.

Company should provide Racks and other material of advertisement to retailers.

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CHAPTER -7

RECOMMENDATIONS Company should insure that distributor in not doing any kind of discrimination between

small outlet and big outlets. And providing product on time as per the requirement of the

outlet. For that they can conduct the monthly survey to the small outlets.

Company should ensure that retailers are getting regular service. For that any senior

person can make a surprise visit at distributor points and outlets.

Company should increase the profit margin of retailer, which help them to increase sale

and get the competitive advantages.

Company should provide more and regular schemes to retailer. And they also need to

ensure that it reaches to the retailer. For that they can conduct the survey on monthly

basis, which also help them in maintaining good relation with retailers.

Company should more effectively handle the cooler complaints. To solve this problem

they can appoint 1 engineer for each area.

Company should provide the one week credit facilities to that retailer who is asking for

credit. Credit facilities in not asked by every outlet. As per my survey there is not more

than 10% of retailers are asking for credit. For that company need to talk to the

Distributor and come up with some solution. Because those 10% outlets can make a great

change in company’s sales.

Company should provide Racks and other material of advertisement to retailers. For that

they can ask the M.D (Market Developer) to make a data of outlets that don’t have any

kind of advertising materials. And provide them the same, which is also Help Company

to increase sale.

Overall service should be improved for getting more sales and to be the market leader.

For that they can do a survey on monthly basis.

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LEARNINGS

• In this project my job was to collect information of outlets and making new customer

(retailer) for Coca- Cola for which I need to go all the outlets and get the information and

also approach those outlets who deals with Pepsi to start with Coke products which helps

me to increase my confidence level.

• My main work was to convince those retailer who deals with Pepsi and the retailer who

do not deal with any kind of soft drinks to start with Coke Product. This helps me to

increase my convincing power.

• I had also learned how to build and maintain relationship. As this business is basically

based on relationship. If the company executives have good relation with retailers, then

sales will automatically increase.

• I had also learned that how to handle the customer at different situation.

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BIBLIOGRAPHY

Websites:

www.scribd.com

http://www.Coca-Colaindia.com/products/product_list_desc.html

http://en.wikipedia.org/wiki/Coca-Cola

http://www.Coca-Colaindia.com/ourcompany/missionvalues.html

http://www.Coca-Cola.co.uk/brands

Thank you

Page 77 of 77

http://www.coca-cola.co.uk/brands

http://www.coca-colaindia.com/ourcompany/missionvalues.html

http://en.wikipedia.org/wiki/Coca-Cola

http://www.coca-colaindia.com/products/product_list_desc.html

http://www.scribd.com/

Date post:	27-Oct-2014
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