Hindustan Coca (1)

8/6/2019 Hindustan Coca (1)

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Acknowledgement

Summer training was an exposure to corporate environment. It was an opportunity

and great pleasure for me to be in such an environment and having interaction with

concerned people.

I express my heartily respect and profound thanks to Mr. Prathap (A.S.M.) and Mr.

Prasad (S.E.) for their enlightening and meticulous guidance for the consummation

and evaluating of this project.

I am also very thankful to Mr. Simhadri (H.R.) and all the salesmen for their cooperation while doing the project.

Prof. K. Rama Rao, Faculty, SSIM, Secunderabad, who was in the role of my FacultyGuide, left no stone unturned in guiding me along the course of my Summer Training

Project work.Finally, to my parents, without whom I would not have finished my

project.

Offering thanks,

K.Raghavendra.


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Declaration

I hereby declare that I have worked on the topic HorizontalExpansion of Coca Cola in Hyderabad from 7 th April 2010 to 8 th June 2010under the guidance of Mr. V.S.R.Prasad (S.E) of Coca Cola and Mr. RamaRao.K (Faculty) of SSIM.

I would like to categorically mention that the work here has neither beenpurchased nor acquired by any other unfair means. The data and informationexisting in this report are accurate and update to the current data, to the best of myknowledge.


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HISTORY OF SOFT DRINKS Soft drinks trace their history back to the mineral waters found in natural springs. Ancientsocieties believed that bathing in natural springs and/or drinking mineral waters could curemany diseases. Early scientists who studied mineral waters included J bir ibn Hayy n,

Alkindus, Rhazes, Paracelsus, Robert Boyle, Friedrich Hoffmann, Antoine Laurent Lavoisier,Hermann Boerhaave, William Brownrigg, Gabriel F. Venel, Joseph Black, and DavidMacbride.

The earliest soft drinks were sherbets developed by Arabic chemists and originally served inthe medieval Near East. "Alkaline Substances", "A kind of Saltwort" from which soda isobtained, probably from Arabic suwwad, the name of a variety of saltwort exported from North Africa to Sicily in the Middle Ages, related to sawad "black," the color of the plant.These were juiced soft drinks made of crushed fruit, herbs, or flowers. From around 1265, a popular drink known as Dandelion & Burdock appeared in England, made from fermenteddandelion (Taraxacum officinale) and burdock (Arctium lappa) roots, and is naturallycarbonated. The drink (similar to sarsaparilla) is still available today, but is made with

flavorings and carbonated water, since the safrole in the original recipe was found to becarcinogenic.

The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17thcentury. They were made from water and lemon juice sweetened with honey. In 1676, theCompagnie des Limonadiers of Paris was granted a monopoly for the sale of lemonade softdrinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.

Carb on a ted d ri nks

In late 18th century, scientists made important progress in replicating naturally carbonatedmineral waters. In 1767, Englishman Joseph Priestley first discovered a method of infusingwater with carbon dioxide to make carbonated water . when he suspended a bowl of distilledwater above a beer vat at a local brewery in Leeds, England. His invention of carbonatedwater, (also known as soda water), is the major and defining component of most soft drinks.Priestley found water thus treated had a pleasant taste, and he offered it to friends asarefreshing drink. In 1772, Priestley published a paper entitled I mpregnating Water with Fixed

Air in which he describes drippingoil of vitriol (or sulfuric acid as it is now called) ontochalk to produce carbon dioxide gas, and encouraging the gas to dissolve into an agitated bowl of water.

Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus

for commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generatingapparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman'sapparatus allowed imitation mineral water to be produced in large amounts. Swedish chemistJns Jacob Berzelius started to add flavors (spices, juices and wine) to carbonated water inthe late 18th century.

Ph osp h a te sod a

In the 1950s, a variant of soda in the United States called "Phosphate Soda" became popular with the most popular of them being the orange phosphate. The drink consists of 1 oz orange


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syrup, 1/2 teaspoon of phosphoric acid, and the rest being carbonated water in a glass filedwith ice. This drink was commonly served in pharmacies.

S od a fount ai n p ionee r s

Artificial mineral waters, usually called "soda water," and the soda fountain made the biggestsplash in the United States. Beginning in 1806, Yale chemistry professor Benjamin Sillimansold soda waters in New Haven, Connecticut. He used a Nooth apparatus to produce hiswaters. Businessmen in Philadelphia and New York City also began selling soda water in theearly 1800s. In the 1830s, John Matthews of New York City and John Lippincott of Philadelphia began manufacturing soda fountains. Both men were successful and built largefactories for fabricating fountains.

S od a fount ai ns vs. bottled sod a s

The drinking of either natural or artificial mineral water was considered a healthy practice.The American pharmacists selling mineral waters began to add herbs and chemicals to

unflavored mineral water. They used birch bark (see birch beer), dandelion, sarsaparilla, fruitextracts, and other substances. Flavorings were also added to improve the taste. Pharmacieswith soda fountains became a popular part of American culture. Many Americans frequentedthe soda fountain on a daily basis. Due to problems in the U.S. glass industry, bottled drinkswere a small portion of the market in the 19th century. (They were certainly known inEngland, though. InT he T enant of Wildfell Hall , published in 1848, the caddish Huntingdon,recovering from months of debauchery, wakes at noon and gulps a bottle of soda-water. InAmerica, most soft drinks were dispensed and consumed at a soda fountain, usually in adrugstore or ice cream parlor. In the early 20th century, sales of bottled soda increasedexponentially. In the second half of the 20th century, canned soft drinks became an importantshare of the market.

S oft d ri nk bottl ing indust ry O ver 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink bottletops during the early days of the bottling industry. Carbonated drink bottles are under great pressure from the gas. Inventors were trying to find the best way to prevent the carbondioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented byWilliam Painter, a Baltimore machine shop operator. It was the first very successful methodof keeping the bubbles in the bottle.

Autom atic p r oduct ion of gl ass bottles

In 1899, the first patent was issued for a glass-blowing machine for the automatic productionof glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-blowing machine was in operation. It was first operated by the inventor, MichaelO wens, an employee of Libby Glass Company. Within a few years, glass bottle productionincreased from 1,400 bottles a day to about 58,000 bottles a day.

H ome- P aks and vend ing m ach ines


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During the 1920s, the first "Home-Paks" were invented. "Home-Paks" are the familiar six- pack cartons made from cardboard. Automatic vending machines also began to appear in the1920s.

P r oduct ion

S oft d ri nk p r oduct ion

Soft drinks are made either by mixing dry ingredients and/or fresh ingredients (e.g. lemons,oranges, etc.) with water. Production of soft drinks can be done at factories, or at home.

Soft drinks can be made at home by mixing either a syrup or dry ingredients with carbonatedwater. Carbonated water is made using a home carbonation system or by dropping dry iceinto water. Syrups are commercially sold by companies such as Soda-Club.

I ng r ed ient qu a lity

O f most importance is that the ingredient meets the agreed specification on all major parameters. This is not only the functional parameter, i.e. the level of the major constituent, but the level of impurities, the microbiological status and physical parameters such as color, particle size, etc.

C oca -C ola Gets T h e F ir st C h a nge O f T a ste I n 1886

In 1985, a new cola emerged from laboratory research. Through internal evaluations andthousands of blind taste tests, consumers said they preferred it over both Coca-Cola and its primary competition. As a result, in April 1985, the Company proudly introduced the newtaste of Coke - the first change in the secret formula since the product was created in 1886.

T ra dem ar k R egist ra t ion O f C oca -C ola

The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark O ffice in1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumerseverywhere, was granted registration as a trademark by the U.S. Patent and Trademark O fficein 1977, an honor awarded very few packages.

Ex tens ion O f T h e Most C h eri sh ed T ra dem ar k

In 1982, The Coca-Cola Company introduced diet Coke to U.S. consumers, marking the firstextension of the Company s most precious trademark to another product. Later years saw theintroduction of additional products bearing the Coca-Cola name, which now encompasses a powerful line of cola products.


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MAJ OR PL AY E RS

Apart from coca-cola, other major players are as follows:

P E P SI C O: PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500, American multinational

corporation headquartered in Purchase, NY with interests in manufacturing and marketing awide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain- based snacks, and other foods. Their main product, Pepsi Cola, sells over 100 billion cans ayear. Besides the Pepsi-Cola brands, the company owns the brands Quaker O ats, Gatorade,Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7-Up (outside theUSA).

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006. During her

time, healthier snacks have been marketed and the company is striving for a net-zero impacton the environment. This focus on healthier foods and lifestyles is part of Nooyi's"Performance With Purpose" philosophy.

Today, beverage distribution and bottling is undertaken primarily by associated companiessuch as The Pepsi Bottling Group (NYSE: PBG) and Pepsi Americas (NYSE: PAS). PepsiCois a SIC 2080 (beverage) company.

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjabgovernment-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This

joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was

allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim

that firstly Pepsi was banned from import in India, in 1970, for havi ng refused to release the

list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market

shortly afterwards.

DABU R IN D I A- Dabur india ltd Dabur India Limited is the fourth largest FMCGCompany in India and Dabur had a turnover of approximately US$ 600 Million (Rs. 2,834.11Crore fy09) & Market Capitalisation of over US$ 2.2 Billion (Rs 10,000 Crore), with brandslike Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real.

About R ea l


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R eal has been the preferred choice of consumers when it comes to packaged fruit juices,which is what makesI nd ia' s N o. 1 F r uit Ju ice bra nd . A validation of this success is thatRal has been awarded I nd ias Most T r usted B ra nd status for four years in a row.

Today, Ral

has a ra nge of 14 e xcit ing v aria nts

- from the exotic Indian Mango,Mausambi, Guava & Litchi to international favourites like Pomegranate, Tomato, Cranberry,Peach, Blackcurrant & Grape and the basicO range, Pineapple, Apple & Mixed Fruit. Thislarge range helps cater different needs and occasions and has helped Ral maintain itsdominant market share.

R ea l Act iv

R al Act iv is a range of unsweetened juices that contain no adder sugar colours or preservatives. Real Activ juices are made from concentrated juices. After the juice is pressedfrom the fruit, the water is removed to reduce transportation load.

Ral Burrst

Ral Burrst, the latest addition to Dabur's Foods portfolio, has a range of light & refreshingfruit beverage.Available in 4 exciting flavours of M ixed F r uit, Cri sp y Apple , O ra nge B ytezand M ango M ania , Ral Burrst promises an experience that delivers refreshment through

lightness of fresh fruits to you.Ral Burrst comes in an attractive tetrapack highlighting the'Lite and Refreshing' qualities of fruits that it brings to you. All 4 variants are made availablein 1 liter and 200 ml packs, priced at Rs. 65 and Rs. 15 respectively.

G O DR E J IN D I A-

Godrej Hershey, Ltd. markets juices and fruit drinks, soymilk based drinks, edible oils, packaged tea, and confectionery products. Godrej Hershey, Ltd. was formerly known asGodrej Beverages and Food, Ltd. The company was founded in 2002 and is based inMumbai, India. It has a confectionery plant in the Chittoor. As of May 2007, Godrej Hershey,Ltd. operates as a subsidiary of Hershey Co.

PA RLEY AG RO


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Parle Agro is a trusted name in the Indian beverage industry and has been refreshing Indiasince two decades with leading brandslike F r oot i, App y, App y F izz,L M N and packageddrinking water, Bailley. As an industry pioneer, Parle Agro is the first to introduce fruitdrinks in a Tetra Pak in India, the first to introduce apple nectar and the first to introduce fruit

drinks in PET bottles. In 2007, Parle Agro forayed into the confectionery business. In theconfectionery division, Parle Agro has brands like Mintrox, Buttercup, Buttercup Softeaseand Frewt clairs. The latest product from Parle Agro Saint Juice was launched in 2008.

C oca -C ola C la ss ic R ul ing S ince 1886

The launch of Coke with the new taste took place in the United States and Canada.Consumers responded with an unprecedented-and now famous-outpouring of loyalty andaffection for the original formula. In July 1985, the original formula of Coca-Cola returned asCoca-Cola classic. In 1986, Coca-Cola classic became, and still remains, the nation s top-selling soft drink.

C oca -C ola T ra dem ar ks T h e Wo r lds Most V a lu ab le Assets

Coke most valuable assets happen to be the trademarks company possess. For Coca-Cola, themost drunk soft drink on earth is one of the world s best-known and most admiredtrademarks, recognized by more than 90 percent of the world s population.

Interestingly, the world that is touched by companys cherished drinks for every moment, theCoca-Cola trademarks happen not only to be companys most valuable assets but of the entireearth.

L IF E AT C OK E

T h e S ecr et O f F or mul a

Commitment, tempered by Passion and seasoned with a greatdeal of Fun is the Coke way of life. Drawing upon companys


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collective energies, this Secret Formula drives to achieve greater results collaboratively andthoroughly enjoy while doing it! The pace, energy and passion of company people constitutethe invisible glue that make coke one of the most sought after workplaces.

P ar t icipa t ive L ea de r sh ip

Right from coke interactions in the market, companyBusiness Planning and Brand launches, to companysEmployee Engagement Programs, Values Agenda, andemployee processes, every system is available for continuousimprovement. A learning atmosphere, enabled by companys

Manifesto for Growth, helps us seek and replicate thelearnings from within and outside organization. Company

Engagement programs enable to examine, validate and improve, constantly. companycolleagues involve themselves in opportunities for participative leadership volunteering for work groups that assist decision-making in critical processes.

C OR P OR AT E C ITIZ E NSHI P

The Coca-Cola Company believes business hasalways been based on the trust consumers everywhere place in trust that is earned by what we do as acorporate citizen and by our ability to live our valuesas a commercial enterprise.

There is much in world to celebrate, refresh,strengthen and protect. Through actions as localcitizens, company strives every day to refresh the

marketplace, enrich the workplace, preserve the environment and strengthen their communities.

M ission

To refresh the world... In mind, body and spirit.

To inspire moments of optimism through our brands and our actions.


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To create value and make a difference everywhere we engage.

With the mission to refresh this world the coca cola company gear up the company to reach

potential; mission is to create a growth strategy that bring good to the world by refreshing pe

every day and inspiring them with optimism through the brands and our actions.

Vision

The company asks 150 of top leaders to re-imagine The Coca-Cola Company. This wouldresult to lead company to a holistic vision that the company is working to accomplish over the next 10 years.

M ore than a billion times a day, consumer choose our brand of refreshment because coca cola is... The Symbol of Quality Customers and Consumers

Satisfaction

y A Responsible Citizen of the World

The SWO T analysis is been done on The CO CA CO LA Company and following things has been preferred in terms of company.

STR E N G THS

y Strong brand name.


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y Effective and efficient management.

y Adaptability with changing market trend and demand.

y Strong market strategy.

y Strong distribution channels.

W E AKN E SS

y Lack of proper sales man training.

y Problem in the frequency of the delivery of goods

O PP ORT U INITI E S

y Diversification of juice products.

y With growing juice market so handsome opportunity to increase sale and capture market.

THR E ATS y Change in taste of people.

y More competitors.

y BOTT E L exch ang ing sc h eme

y Unpredictable market conditions.

y In terms of the product to be launch it could be the expected threat that the off season is atdoor step.

y


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y y y y Now the question is,Why is the soft drink industry so profitable?

y An industry analysis through Porters Five Forces reveals that market forces arefavorable for profitability.

y Defining the industry: Both concentrate producers (CP) and bottlers are profitable.

These two parts of the industry are extremely interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap;for instance, CPs do some bottling, and bottlers conduct many promotional activities.The industry is already vertically integrated to some extent. They also deal withsimilar suppliers and buyers. Entry into the industry would involve developingoperations in either or both disciplines. Beverage substitutes would threaten both CPsand their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft

drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlersearned 9% profits on their sales, for a total industry profitability of 14% (Exhibit 1).This industry as a whole generates positive economic profits.

y

y Rivalry: Revenues are extremely concentrated in this industry, with Coke and Pepsi,together with their associated bottlers, commanding 73% of the case market in 1994.Adding in the next tier of soft drink companies, the top six controlled 89% of themarket. In fact, one could characterize the soft drink market as an oligopoly, or even a


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duopoly between Coke and Pepsi, resulting in positive economic profits. To be sure,there was tough competition between Coke and Pepsi for market share, and thisoccasionally hampered profitability. For example, price wars resulted in weak brandloyalty and eroded margins for both companies in the 1980s. The Pepsi Challenge,

meanwhile, affected market share without hampering per case profitability, as Pepsiwas able to compete on attributes other than price.

y

y S ubstitutes: Through the early 1960s, soft drinks were synonymous with colas inthe mind of consumers.O ver time, however, other beverages, from bottled water toteas, became more popular, especially in the 1980s and 1990s. Coke and Pepsiresponded by expanding their offerings, through alliances (e.g. Coke and Nestea),acquisitions (e.g. Coke and Minute Maid), and internal product innovation (e.g. Pepsi

creating O range Slice), capturing the value of increasingly popular substitutesinternally. Proliferation in the number of brands did threaten the profitability of bottlers through 1986, as they more frequent line set-ups, increased capitalinvestment, and development of special management skills for more complexmanufacturing operations and distribution. Bottlers were able to overcome theseoperational challenges through consolidation to achieve economies of scale.O verall, because of the CPs efforts in diversification, however, substitutes became less of athreat.

y P ower of S uppliers: The inputs for Coke and Pepsis products were primarily sugar and packaging. Sugar could be purchased from many sources on the open market, andif sugar became too expensive, the firms could easily switch to corn syrup, as they didin the early 1980s. So suppliers of nutritive sweeteners did not have much bargaining power against Coke, Pepsi, or their bottlers. NutraSweet, meanwhile, had recentlycome off patent in 1992, and the soft drink industry gained another supplier, HollandSweetener, which reduced Searles bargaining power and lowering the price of aspartame. With an abundant supply of inexpensive aluminum in the early 1990s andseveral can companies competing for contracts with bottlers, can suppliers had verylittle supplier power. Furthermore, Coke and Pepsi effectively further reduced thesupplier of can makers by negotiating on behalf of their bottlers, thereby reducing thenumber of major contracts available to two. With more than two companies vying for these contracts, Coke and Pepsi were able to negotiate extremely favorableagreements. In the plastic bottle business, again there were more suppliers than major


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contracts, so direct negotiation by the CPs was again effective at reducing supplier power.

y P ower of buyers: The soft drink industry sold to consumers through five principalchannels: food stores, convenience and gas, fountain, vending, and mass

merchandisers (primary part of O ther in Cola Warscase). Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. Thestores counted on soft drinks to generate consumer traffic, so they needed Coke andPepsi products. But due to their tremendous degree of fragmentation (the biggestchain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power. Their only power wascontrol over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability.

Furthermore, consumers expected to pay less through this channel, so prices werelower, resulting in somewhat lower profitability. National mass merchandising chainssuch as Wal-Mart, on the other hand, had much more bargaining power. While thesestores did carry both Coke and Pepsi products, they could negotiate more effectivelydue to their scale and the magnitude of their contracts. For this reason, the massmerchandiser channel was relatively less profitable for soft drink makers. The least profitable channel for soft drinks, however, was fountain sales. Profitability at theselocations was so abysmal for Coke and Pepsi that they considered this channel paidsampling. This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Cokeand Pepsi found these channels important, however, as an avenue to build brandrecognition and loyalty, so they invested in the fountain equipment and cups that wereused to serve their products at these outlets. As a result, while Coke and Pepsi gainedonly 5% margins, fast food chains made 75% gross margin on fountain drinks.Vending, meanwhile, was the most profitable channel for the soft drink industry.Essentially there were no buyers to bargain with at these locations, where Coke andPepsi bottlers could sell directly to consumers through machines owned by bottlers.Property owners were paid a sales commission on Coke and Pepsi products soldthrough machines on their property, so their incentives were properly aligned withthose of the soft drink makers, and prices remained high. The customer in this casewas the consumer, who was generally limited on thirst quenching alternatives.Thefinal channel to consider is convenience stores and gas stations. If Mobil or Seven-


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Eleven were to negotiate on behalf of its stations, it would be able to exert significant buyer power in transactions with

y

y Coke and Pepsi. Apparently, though, this was not the nature of the relationship

between soft drink producers and this channel, where bottlers profits were relativelyhigh, at $0.40 per case, in 1993. With this high profitability, it seems likely that Cokeand Pepsi bottlers negotiated directly with convenience store and gas station owners.So the only buyers with dominant power were fast food outlets. Although theseoutlets captured most of the soft drink profitability in their channel, they accountedfor less than 20% of total soft drink sales. Through other markets, however, theindustry enjoyed substantial profitability because of limited buyer power.

y

y Barriers to Entry: It would be nearly impossible for either a new CP or a new bottler to enter the industry. New CPs would need to overcome the tremendous marketingmuscle and market presence of Coke, Pepsi, and a few others, who had established brand names that were as much as a century old. Through their DSD practices, thesecompanies had intimate relationships with their retail channels and would be able todefend their positions effectively through discounting or other tactics. So, althoughthe CP industry is not very capital intensive, other barriers would prevent entry.Entering bottling, meanwhile, would require substantial capital investment, whichwould deter entry. Further complicating entry into this market, existing bottlers hadexclusive territories in which to distribute their products. Regulatory approval of intrabrand exclusive territories, via the Soft Drink Interbrand Competition Act of 1980, ratified this strategy, making it impossible for new bottlers to get started in anyregion where an existing bottler operated, which included every significant market inthe US. In conclusion, an industry analysis by Porters Five Forces reveals that thesoft drink industry in 1994 was favorable for positive economic profitability, asevidenced in companies financial outcomes.

P RO DU C T P ROFI L E

D IFF E R E NT BR AN DS OF C O M P ANY


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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 innovateand come up with, either complete new products or new ways to bottle or pack the existingdrinks. The Coca-Cola Company has a wide range of products out of which the following

products are marketed by HCCBPL:

I n t h e C ola S ect ion :

I n t h e L emon S ect ion

I n t h e O ra nge & Apple sect ion :

I n t h e m ango sect ion :

I n t h e ju ice sect ion :

I n t h e S od a W ate r and Bottled M ine ra l W ate r sect ion :

BR AN DS T AG L IN E

Thumsup - Taste the thunder Cocacola -O pen happiness Sprite - Seedhi baat no bakwaas ,clear hai Limca Maaza taazgi ka

Fanta Dikhao apne asli rang

Maaza - Bina guthli wala aam MMNF- Bilkul ghar jaisa MMPO - RefreshinglyO range

KINLEY - Boond-Boond Mein Vishwas

BR AN D AMBA SS DORS

Thumsup -Akshay Kumar Cocacola -Aamir Khan

Sprite -Shahrukh Khan Fanta -Genelia Dsouza Limca -Riya Sen

MMPO Nikhil Chinnappa

BR AN D VA L UE

2008 Rank2007 RankBrandSector2008 Brand Value ($m) coca-cola Beverages66,667Coca-Cola has once again retained its status as the worlds most valuable brand. Proving that it still


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has a few tricks up its sleeve, current trends toward healthier diets have seen Coke shift focusto better-for-you drinks in the last year, with the launch of products like the vitamin andmineral enriched Diet Coke Plus and the continued push behind Coke Zero, which is nowavailable in more than 80 countries. Coke has also worked hard to engage consumers, withinnovative online campaigns such as Design Your O wn that invited people to design their

own Coke containers and share them with the world.

200 8 66 ,667200 7 65,324200 6 67,0002005 67,525200 4 67,3942003 70,4532002 69,637200 1 68,945

TY P E S OF O UT L E TS The company has divided their outlets on the basis of the following criteria-

y Volumey Channely Income group

VO L UM E

There are four types of outlets according to the volume of sales of the outlet-Diamond - 800>C/s & aboveGold - 500-799C/sSilver - 200-499C/sBronze -


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Eating and Drinking Channel:O utlets range from the high-end restaurants tothe smaller dhabas. These outlets offer multipleO pportunity to effect sales as people usually order something to drink alongwith food. It includes

- Restaurants- Bars and Pubs- Dhabas- Sweet shops- Quick service restaurants

(C ) E ATIN G & D RINKIN G C H ANN E L 2It includes minimum 5 set table & chair outlets.

(D) C ON VE NI E N CE C H ANN E L P an/ bi d i sh ops (custome r pr of ile) : This segment includes PAN BIDDI outlets that stock cigarettes, mint, confectionary. It covers STD/ISD phone booths, travel channel etc. Smalloutlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml.

IN C O M E G RO UP

According to the income group of the area-y Lowy Mediumy High

F E W W OR DS AB O UT TH E C O M P ANY

Every person who drinks a Coca-Cola enjoys a moment of refreshment and sharesan experience that millions of others have served. All of those individual experiencescombined have created a worldwide phenomenon a truly global brand. On thedistribution front, 10-tonne trucks, open-bay three wheelers that can navigate thenarrow alleyways of Indian cities, ensure availability of our brands in ev ery nook andcorner of the country. The company-owned Bottling arm of the Indian Operations,


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Hindustan Coca-Cola Beverages Private Limited is responsible for the manufacture,sale and distribution of beverages across the country. A career at Hindustan Coca-Cola Beverages Pvt. Ltd. is truly a one-of-a-kind experience. Come taste life atCoca- Cola.

HISTORY:

Dr. John Smith Pemberton , an Atlanta druggist , invented Coca-Cola syrup on May 8,1886.The fountain drink was first marketed as a brain and nerve tonic in drug stores. In 1916a new design was unveiled for Coca-Cola bottles called the Contour Bottle, which helped thesoda stand out among imitators and become a smash hit and a symbol of the company.However coming to India it returned in 1993 after a gap of 16 years giving a new thumbs-upto the Indian Soft Drink Market. In the same year, the Company took over ownership of thenation's top soft-drink brands and bottling network. No wonder, our brands have assumed aniconic status in the minds of the consumers. Coca-Cola serves in India some of the mostrecalled brands across the world including names such as Coca-Cola, Diet Coke, Sprite,

Fanta, Thums Up, Limca, Maaza and Kinley (packaged drinking water), Minute Maid PulpyO range.


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O b ject ives of t h e stud y:

P ri m ary O b ject ive :

1. To increase the number of Coca Cola outlets in the given areas.

2. To acquire the competitor outlets and make them sell coke products.

3. To increase the market share in the assigned area.

S econd ary O b ject ives :

1. To understand how to make the horizontal process more effective.2. To study the distribution system of the company.

3. To study the behavior of sales man and distributor towards shopkeeper


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P RODUCTS AND BRANDS:


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DI E T C OK E : It was introduced in 1982 to offer an alternative to dieters worried about the high number of calories present in regular Coca-Cola.The Coca- Cola Company offers nearly 400 brands in over 200 countries, besides itsnamesake Coca-Cola beverage. This includes other varieties of Coca-Cola such as:

Diet Coke (introduced in 1982), which uses aspartame, a synthetic phenylalanine-basedsweetener in place of sugar

Diet Coke Caffeine-Free Cherry Coke (1985) Diet Cherry Coke (1986) Coke with Lemon (2001) Diet Coke with Lemon (2001) Vanilla Coke (2002) Diet Vanilla Coke (2002) Coca-Cola C2 (2004) Coca-Cola Black Cherry Vanilla (2006)

Diet Coca-Cola Black Cherry Vanilla (2006) Coca-Cola Bl K (2006) Diet Coke Plus (2007) Coca-ColaO range (2007)

Sprite : TYPE LEMON-LIME MANUFACTURER Coca Cola

Country of origin Germany Introduced 1961 Sprite is a clear soda, lemon-lime flavored, caffeine free soft drink, produced by the Coca-Cola Company. It was introduced to the United States in 1961. This was Coke's response tothe popularity of 7 up, which had begun as "Lithiated Lemon" in 1929. It comes in a primarily green and blue can or a green transparent bottle with a primarily green and bluelabel.

History:

O riginating in Germany as Fanta Klare Zitrone ("Clear Lemon Fanta"), Sprite was introducedto the United States in 1961 to compete against 7-Up. In the 1980s, many years after Sprite's

introduction, Coke pressured its large bottlers that distributed 7 Up to replace the competitor with the Coca-Cola product. In large part due to the strength of the Coca-Cola system of bottlers, Sprite finally became the market leader position in the lemon-lime soda category in1989Global naming Sprite, as a lemon-lime soda, is referred to by consumers around the world ina variety of ways. It is called lemonade in Australia and New Zealand. In Ireland and Canada,Sprite and 7-up are interchangeable and, when asked, a person may say Sprite or 7-up tomean the same drink. In South Africa, Sprite and Schweppes Lemonade are almostinterchangeable. In some parts of Switzerland, Sprite (or any other type of lemonade) is alsoknown simply as Citra.


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L imc a : Limca is a lemon and lime flavored carbonated soft drink made in India and certain parts of the U.S. It is less bubbly than its American counterparts like Seven Up and Sprite, and ithas a slight flavor of ginger.In 1992, when the government allowed Coca-Cola to return, at the same time as it admittedPepsi for the first time, Coca-Cola bought Limca, Thums Up, Maaza and other drink brands.

Type Lemon-lime soda Manufacturer The Coca-Cola Company Country of origin India Introduced 1977

Limca is a lemon and lime flavored carbonated soft drink made in India and

certain parts of the U.S. It is less bubbly than its American counterparts likeSeven Up and Sprite, and it has a slight flavor of ginger.

Thums Up:Type Cola

Manufacturer The Coca-Cola Company

Country of origin India

Introduced 1977

Thums Up is a carbonated soft drink (cola) that is very popular[citation needed] in India,where its bold, red thumbs up logo is common. It is similar in flavor to other colas but has aunique taste reminiscent of betel nut. Introduced in 1977 to offset the expulsion of The Coca-Cola Company and other foreign companies from India, Thums Up, Limca, and Campa Colagained nationwide acceptance. The brand was bought out by Coca-Cola who later re-launched it to fight against Pepsi after unsuccessful attempts at brand killing.

Background :

During late 1970s, the American cola giant Coca-Cola was banned by the Indian government.Following this, the Parle brothers, Ramesh Chauhan and Prakash Chauhan, along with thenCEO Bhanu Vakil, launched Thums Up as their flagship drink, adding to their portfolio of older brands Limca (lime flavour) and Gold Spot(orange flavored). Thums Up was basicallya cola drink, but the company never claimed it as such. The formula was just as closelyguarded as the famous Coke formula. During the same time, the owners of Coca-Colas bottling plant, Pure Drinks Ltd., launched Campa Cola and CampaO range, both of which


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had a higher dose of carbon dioxide.The Thums Up logo was a logo showing a red thumbs uphand gesture with a slanted white serif typeface. This would later be modified by Coca- Colawith blue strokes and a more modern-looking typeface. This was mainly done to reduce thedominant red color in their signage.

The picture shows the thums up mountain or thums up pahaad(in Hindi)manmad hillswhich has a natural top like thums up logo and is a popular sight from trains .Its famouscaption until the early `80s was, Happy days are here again, coined by then famouscopywriter Vasant Kumar, whose father was spiritual philosopher U. G. Krishnamurti. Later it was changed to "Taste the thunder!.

M ar ket :

Thums Up enjoyed a near monopoly with a much stronger market share often overshadowingits other rivals like Campa cola, Double seven and Dukes, but there were many small regional players had their own market. It even withstood liquor giant United Breweries Group (makersof Kingfisher Beer) Mcdowell's Crush, which was another Cola drink and one more Double

Cola. It was one of the major advertisers throughout the 80s. In mid-80s it had a brief threat from a newcomer Double Cola which suddenly disappeared within a few years.

In 1990, when Indian government opened the market to multinationals, Pepsi was thefirst to come in. Thums Up went up against the international giant for an intense onslaughtwith neither side giving any quarter. With Pepsi roping in major Indian movie stars like JuhiChawla, to thwart the Indian brand, Thums Up increased its spending in the Cricketsponsorship. Then the capacity went from 250ml to 300ml, aptly named MahaCola. Thisnickname gained popularity in smaller towns where people would ask for "Maha Cola"instead of Thums Up. The consumers were divided where some felt the Pepsis mild tastewas rather bland.

In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to 1993. But Coca-Colas entry made things even more complicated and the fight became a three-way battle.That same year, in a move that baffled many, Parle sold out to Coke for a meagre US$ 60million (considering the market share it had). Some assumed Parle had lost the appetite for afight against the two largest cola brands; others surmised that the international brandsseemingly endless cash reserves psyched-out Parle. Either way, it was now Coca-Colas, andCoke has a habit of killing brands in its portfolio that might overshadow it. Coca-Cola soonintroduced its cola in cans which was all the rage in India, with Thums Up introducedalongside, albeit in minuscule numbers. Later Coca-Cola started pulling out the Thums Up brand which at that time still had more than 30% market share.

Re-launch:

Despite its strong overall equity, the brand was losing its popularity among the core coladrinking age group of 12 to 25 year olds, partly due to nil advertising.

Coca-Cola apparently did try to kill Thums Up, but soon realized that Pepsi would benefit more than Coke if Thums Up was withdrawn from the market. Instead, Coke decidedto use Thums Up to attack Pepsi. The Coca-Cola Company by this time had about 60.5%share of the Indian soft-drink market but much to its dismay found out that if it takes outThums Up, it would remain with only 28.72% of the market (according to a report by NGO


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Finance&Trade in India), hence again dusted out the Thums Up brand and re-launchedtargeting the 30 to 45 year olds.

The brand was re-positioned as a manly drink, drawing on its strong taste qualities.Known to be a strong drink with more power packed into it than other colas, it was a favoritein Rum based Cocktails and the byword rum and Thums Up. Hence Thums Up kick-startedan aggressive campaign directly attacking Pepsis television advertisement, focusing on thestrength of the drink hoping that the depiction of adult drink would appeal to youngconsumers.Grow up to Thums Up was a successful campaign. The brands market share and

equity soared northwards. The brand was unshakeable and Coca-Colas declaration thatThums Up was Indias premier cola brand in terms of market share did not surprise manyO ther campaigns from Thums Ups build on the strength of its cola and buildassociations as a macho drink. Ads showing the Thums Up man, riding through the desertin search of a cantina that sells Thums Up rather than drink another cola, stick in theminds of many Indians and caught the imagination of youngsters who want to be seen asmen.

F anta:

Type Soft drink Manufacturer The Coca-Cola Company Country of origin Germany Introduced 1940

Fanta is a global brand of fruit-flavored soft drink from the Coca-Cola Company. There areover 115 flavors world-wide; however, most of them are only available in some countries.The brand was originally introduced in Germany in 1940, and was purchased by Coca-Colain 1960. Today it is available in 180 countries.

History: In 1940 Fanta was created by the German chemist Schetelig during World War II in

Germany, by the German Coca-Cola bottling company in Essen. Due to war time restrictionson shipping between Germany and the United States, the German bottling plant could not getCoca-Cola syrup. The CEO of the plant, Max Keith, needed a product to keep the plant inoperation and devised a fruit flavored drink made from available ingredients.

Using apple fiber remaining from cider pressing and whey, a byproduct from cheesemanufacture,Fanta was created and became quite popular. The original German Fanta had ayellow color and a different flavor from that of FantaO range. The flavor varied throughoutthe war, depending on the ingredients used.

The name 'Fanta' was coined during an employee contest to name the new beverage.Keith told them to let their Fantasie (German for "imagination") run wild.O n hearing that,salesman Joe Knipp spontaneously arrived upon the name Fanta.After World War II, Fanta was introduced to the United States by Coca-Cola, and in 1960they bought the trademark. FantaO range is the most


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popular Fanta flavor, available in 180 countries. In terms of volume, Brazil is the largestconsumer of Fanta in the world. Fanta remains more popular in Europe and South Americathan in the United States.

Primary competitors to Fanta have included Tango,O rangina, PepsiCo's Slice andTropicana Twister.

In some markets, Coca-Cola also has spun off various diet Fanta varieties includingFanta "Z" and Fanta ZeroO range.

Ingredients:

The composition of Fanta, for the same flavor, varies from country to country. For example,the European FantaO range has orange juice (in variable percentages), whereas the USformulation does not. The Australian version contains 5% fruit juice, and South Americanformulations also have orange juice, especially in Brazil, where it contains 10% of orange juice. These differences mean the taste of Fanta differs greatly from country to country, moreso than regular Coca Cola, and may in part explain why the drink's popularity varies so much

between different countries.Fanta in other countries:

Billboard promoting Guarana Fanta in Guadeloupe

There are over 70 different flavors world -wide. For example, in Romania (and some other countries), there is "Fanta Shokata" based on the traditional Romanian and Balkan drink Socata made from elderflower ( a wordplay between "soc"- elderberry in Romanian- and"shock"). In Switzerland and the Netherlands the local fruit, blackcurrant is used to produceFanta as well. Some identical flavors have different names in different markets. The classicorange, for example, was rebranded "Fanta FunkyO range" in 2003 for the Nordic countriesand Belgium, and to 'FantaO riginalO range' in the Netherlands while other countries retainthe older "FantaO range" brand. As of the year 2005, the Fanta brand has been connectedwith the word Bambaacha (or Bamboocha), which is often seen in the Fanta commercials.TaB diet Cola was originally produced by the Fanta division of Coca-cola and was, at onetime, available in a variety of non -cola flavors as well. Later in 2005, Fanta branched outinto new Fanta Zero (diet versions) varieties in Great Britain. In Great Britain, the new Fantalogo is introduced.


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M aa za : Type Fruit juiceManufacturer The Coca-Cola CompanyCountry of origin IndiaIntroduced 1976Variants MaazaO range, Maaza PineappleRelated products Slice, Frooti

Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh, the most popular drink being the mango variety, so much that over the years, the Maaza brand has become synonymous with Mango. Initially Coca-Cola had also launched Maaza in orangeand pineapple variants, but these variants were subsequently dropped. Coca-Cola has recentlyre-launched these variants again in the Indian market.

Mango drinks currently account for 90% of the fruit juice market in India. Maazacurrently dominates the fruit drink category and competes with Pepsi's Slice brand of mangodrink and Frooti, manufactured by Parle Agro.

While Frooti was sold in small cartons, Maaza and Slice were initially sold inreturnable bottles. However, all brands are also now available in small cartons and large PET bottles. O f late, the Indian market is witnessing the entry of a large number of smallmanufacturers producing only mango fruit drink.

Maaza has a distinct pulpy taste as compared to Frooti and tastes slightly sweeter thanSlice. Maaza claims to contain mango pulp of the Alphonso ariety, which is known as the"King of Mangoes" in India.

History:Maaza was launched in 1976 in India. The Union Beverages Factory, based in the UnitedArab Emirates, began selling Maaza as a franchisee in the Middle East and Africa in 1976.By 1995, it had acquired rights to the Maaza brand in these countries through MaazaInternational Co LLC Dubai. In India , Maaza was acquired by Coca-Cola India in 1993 fromParle- Bisleri along with other brands such as Limca, Citra, Thums Up and Gold Spot. As for North America, Maaza was acquired by House of Spices in 2005.


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Minute Maid:Minute Maid is a product line of beverages, usually associated with lemonade or orange juice, but now extends to soft drinks of many kinds, including Hi-C. Minute Maid was thefirst company to market orange juice concentrate, allowing it to be distributed throughout theUnited States and served year-round.

The Minute Maid Company is now owned by The Coca-Cola Company, and ishe world's largest marketer of fruit juices and drinks. It is headquartered in Houston, Texas,and employs 2,200 people. In 2002 the Houston Astros baseball team sold the naming rightsfor their venue, subsequently anointed Minute Maid Park, and the company now owns 8.5%of the team.

History:The National Research Corporation (NRC) of Boston, Massachusetts, developed a

method of concentrating orange juice into a powder using a "high-vacuum process" in 1945.The US Army had a need for 500,000 lb (227,000 kg) for the war, so NRC created a new branch, the Florida Food Corporation. Led by John M. Fox, the company won thegovernment contract for $750,000.

The war ended and the contract was canceled before the factory could be built, butwith investment, the company moved forward with a product.

Rather than selling powder to the public market, the company decided to create frozenorange juice concentrate. A Boston marketing firm came up with the name Minute Maid, likeMinutemen, implying the juice was quick and easy to prepare.

With limited funds for advertising, Fox himself went door to door giving freesamples, until demand skyrocketed. The ability to purchase fresh-tasting orange juice at anytime of year, far from where oranges are grown, proved popular, and led to the company'snational success.The Minute Maid company was purchased by Coca-Cola in 1960. In 1973, the companyreleased the first ready-to-drink, chilled orange juice product in the United States

KINLEY:Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. Aritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the verysustenance of life, a celebration of life itself.The importance of water can never beunderstand. Particularly in a nation such as India where water governs the lives of themillions, be it as part of everyday ritual or as the monsoon which gives life to the sub-continent.

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. Water you can trust to be truly safeand pure.

Kinley water comes with the assurance of safety from the Coca- Cola Company. That is whythey introduced Kinley with reverse-osmosis along with latest technology to ensure the purityof their product. Thats why they go through rigorous testing procedures at each and everylocation where Kinley is produced. Because they believe that right to pure, safe drinkingwater is fundamental. A universal need, that can not be left to chance.


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What is Horizontal Expansion?

Expansion of business capacity through the absorption of facilities or buildings as well asthrough the acquisition of new equipment to handle an increased volume in sales in which the business is already engaged. In microeconomics and strategic management, the termHorizontal Expansion describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. HorizontalExpansion in marketing is much more common than Vertical Expansion is in production.Horizontal Expansion occurs when a firm is being taken over by, or merged with, another firm which is in the same industry and in the same stage of production as the merged firm,e.g. Pepsi has adopted strategy of Vertical Expansion by which Pepsi wants to improve itssale from Coke monopoly outlets, means Cokes monopoly outlets are being taken over byPepsi now in this condition to improve its sale Coke need to open new outlets which iscalled Horizontal Expansion Strategy. A monopoly created through Horizontal Expansion iscalled a Horizontal Monopoly.

This is the expansion of a firm within an industry in which it is already active for the purposeof increasing its share of the market for a particular product or service.

Reasons for Horizontal Expansion? The ultimate objective of coke is to acquire more customers and serve them properly. Whiledoing Horizontal Expansion take care to the competitors strategy. The main competitor isPEPSI, who has opted Vertical Expansion to generate more sale, however Coke do not believe on Vertical Expansion because Vertical Expansion has limited preview so Coke isgreat believer in Horizontal Expansion and this strategy helped to the company to maintainits leadership in the soft drink industry.

India is a big country having diversified taste and appearance and same character isreflected in their demography. Horizontal Expansion helps the company to serve the more people and more customers touch point because in the waste country many customerscommutes.


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How to Do Horizontal Expansion To do Horizontal Expansion more efficiently we made a profit story and talk to theshopkeepers according to that story.Story

Salesperson hello sir, I am from Coke and I have a proposal that will surely increaseyour income. May I present you?

Shopkeeper yes please present it

Salesperson - Sir if you will start to sell coke then your overall sale will be increased andit is not tough to sell coke because Coke is the leader in beverage industry and a very wellknown brand.

Shopkeeper- yes, but how it can increase my overall sale?

Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products have avery good combination with cold drink. If a person wants to purchase any of these products then it is quite possible that he will purchase Coke and vice versa.

Shopkeeper But how Coke can increase my profit?

Salesperson Sir if you are really interested to explore through Coke, you may be able tosell 2 cases of 200ml, 1 case of 300ml, 1 case of 6oo ml and 1 case of 1 liter along with acase of 2 liter

Weight of product(ml) Rate/case(Rs) QT M.R.P(Rs) REVENUE(Rs) PR O FIT(Rs)

200 170 24 8 192 22300 252 24 12 288 36600 512 24 23 552 401200 418 12 38 456 382000 457 9 55 495 38

Sir your daily profit from coke (in Peak season) = Rs. 174

Profit per month (in Peak season) = Rs. 5394


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As the peak season for coke is only three months you are going to earn a profit of Rs 16182

The profit for the rest of the months i.e. off season Rs 24273

(Because as per the Coke assumption income in the off season is decreased by half incomparison to the P eak season )

Profit for the whole year=40455.

Shopkeeper But I do not think this much will work what about those stuffs that needs to

support trading of Coke and I have to provide them like electricity, ice etc.

Salesperson Sir thats a really nice question, we can understand your anxiety and we haveto offer much more for this. We have minimum Rs. 10 offer on 200 and 300 ml andMinimum Rs. 20 on Pet bottles. More over if you are keeping your refrigerator for thestorage purpose of Coke if will be all right as the refrigerator can work by consuming power as low as 2 units per day which will cost you Rs. 8 per day.

So, what you have to say about our offer?

Shopkeeper Yes, I think it will be a nice idea to accept your offer

Benefits of horizontal expansion:

Provides Incremental Volume & Revenue for Business

By horizontal expansion there will be more outlets of our product In the market whichwill sell our product in more quantity. This will generate incremental revenue for the business.

Helps Improve Route Productivity

There are pre determined routes through which product is transported and delivered at

the coke outlets. If we open more outlets on the routes it will increase the productivity

because more outlets will be covered and more product will be delivered with anegligible increase in time and efforts. Hence it will improve productivity of the route

Improves Profitability of O ur Distributors Expenses on routes and delivery of productare incurred by the distributers.O pening new outlets will give more revenue to our

distributors also. With the increase in route productivity will improve profitability of

the distributors.

Reduced Dependence on Large Customers, We know that coke products have a very


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good demand. To comply with this we have to provide large amount of supply. In

case we have few outlets a large amount of stock is gathered at few retailers. In this

case they become monopolistic and demand many things like coolers refrigerators

discounts margins etc. from the company. So it is very necessary to reduce

dependence on large retailers by opening new outlets.

Increase market visibility Selling at more outlets give more market visibility of the

product which gives higher product recognition and brand value to the products.

Economies of scale

Economies of scope

Increase in market power over supplier and downstream market channels.

Research Methodology: The study is based on Primary data and Secondary data. Secondary Data was collected fromthe Companys website and MDs Sales Presenter as well as Primary Data was collectedthrough structured questionnaire. The questionnaire was designed by keeping all theobjectives of the study in mind.

The type of research which is used to conduct survey was.

Sample Unit:

Sampling units are outlets owners/ shopkeepers selling soft drinks.

Sample Size:

Sample Size of 50 outlets.

Sample Technique:

Sample Technique is Convenience sampling.Method of data collection:

Method of data collection is survey method.

Universe:

Vivekananda Nagar(Hyderabad).


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Data Analysis and Interpretation:

1. Reason for not selling coke products

Interpretation: According to the data given in the chart 36% of outlets are notselling coke because of less margin.30% of outlets are not selling because of highelectricity consumption of fridge.24% of outlets are not involved in selling becausethey feel that it is seasonal,10% of outlets had a bad experience previously with thecompany.

2 4%

36%

30%

10%

Ch art Title

seas al less argi

high p wer c su pti bad previ us experie ce


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2.Retailers comment on the deposit for fridge.

Interpretation: According to the data in the above chart 65% of retailers need afridge without deposit and 35% of retailers are willing to take it by paying deposit.

3.Recent proposals made by pepsi

Interpretation: According to the above data Pepsi made several offers to the retailers. Itoffered a free fridge for 55 % of outlets. Day to day offers to 15% of outlets, credit

payment to 30% of outlets.

35%

65%

Fr idge with deposit Fr idge without depos it

55%30%

15%

Ch art Title

free fridge credit payment day to day offers


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4.Number of retailers who accepted to do coke business

Interpretation: According to the above chart 40% of retailers accepted to sell cokewhereas 60 % did not accept my proposal of coke business.

5. Type of outlets visited

Interpretation:According to the above chart 20 % of outlets visited belongs to Pepsiand 80 % does not sell any drinks.

40%

60%

Yes No

2 0%

80%

Ch art TitleP e si t ers


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6. Income class of the outlet

Interpretation: According to the above chart 55% of outlets visited belong to mediumincome group, 40% belong to high income group and 5 % belong to low income group.

FINDINGS

1. In Hyderabad region 65% of retailers need a fridge without deposit and 35% of retailersare willing to take it by paying deposit.2. Recently Pepsi made several offers to the retailers. It offered a free fridge for 55 % of

outlets. Day to day offers to 15% of outlets, credit payment to 30% of outlets.3. 65% of retailers need a fridge without deposit and 35% of retailers are willing to take it by paying deposit.4. The offers of Pepsi are far more better and regular when compared to Coke.5. Some of the retailers had a bad previous experience with coke supply,so they are turningtowards Pepsi.6.The service is a major issue for the retailers during peak season(summer).7.The time taken for processing application is very high.

Suggestions:

1. Provide free fridges to the retailers without any deposit so that most of them are willing totake.2. Retailers must be provided with good offers and more margin so that more retailers will beattracted towards selling coke3. The process of providing fridge should not be so long where the retailer losesinterest(increase the speed of application processing.4. Stock should be regularly supplied to each outlet according to the order given by them

40%

55%

5%

Ch art Title

H igh Medium Low


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irrespective of the income level of the outlet.5. Approach the Pepsi outlets and convince them to make the outlet a shared one.6. Processing time for new outlets should be minimized as least as possible.7.New outlets in summer season must be predicted much before the start of the peak season,so that allocation of budget for the fridges will be quick.

LIMATATIO NS:1. The training period was short, so it is not possible to cover every region2. The sample size was limited3. Behavior of many retailers was not cooperative

BIBILO GRAPHYReferences:

Marketing Management: Philip Kotler

Websites:www.cocacola-india.com

Marketing Management: Articles by Namakumari


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APP E N DIX

N AM E OF TH E O UT L E TS

Vivekananda communications-jagadish-9393 2 84889(VVK Nagar)

Sri Sai Krishna pan shop-Ramesh-9 2 4656899( 9951 22 8199)(VVK Nagar)

Gayathri natural foods -9 2 474510 22 (VVK Nagar)

Sai bhavani biryani(VVK Nagar)

Balaji Bombay chat - 9866 2 91873

Sujatha -9989176638 -Anupama mess(Moti Nagar)

Shyam Srinivas pan shop: 9393057378(Balanagar)

Saleem pan shop -9951 2 71367(Moosapet)


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Table of Contents

AC KNO W L EDG EM E NT ................................ ................................ ................................ ....... 1

DEC L AR ATION ................................ ................................ ................................ ..................... 2HISTORY OF SOFT DRINKS ................................ ................................ ................................ 3

AB O UT TH E C O M P ANY ................................ ................................ ................................ ....... 5

O BJ EC TI VES OF TH E ST UD Y ................................ ................................ ............................. 7

P RO DU C TS AN D B R AN DS ................................ ................................ ................................ ... 8

W H AT IS HORIZONT AL EX P ANSION ................................ ................................ ............. 16

R E ASONS FOR HORIZONT AL EX P ANSION ................................ ................................ 16

HO W TO DO HORIZONT AL EX P AP NSION ...17

BE N E FITS OF HORIZONT AL EX P ANSION ...18

R ES E AR C H M E THO DO L O G Y ..19

DA T A A N AL YSIS & INT E R P R ET ATION .20

FIN DIN GS AN D S UGG E STIONS 23

L I MA T ATIONS ..2 4

BI BI L O G R AP HY ...25

APP E N DIX ..25


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