Project Report on Sales and Distribution Management

Submitted to :

Proff. Makam Balaji

Submitted by:

Kaustav Bhowmick

Samyak Raj

Aditya Maheshwari

Saurabh Suman

Introduction

Coca-Cola is a very popular cola (a carbonated soft drink) sold in stores, restaurants and

vending machines in more than 200 countries. It is also known as Coke. Coke is one of the

world’s most recognizable and widely sold commercial brands and. The major rival of coke is

major rival is Pepsi.

Coca-Cola was invented on May 1886 by Dr. John Stith Pemberton in Jacob's Pharmacy in

Atlanta, Georgia. The first sales of coke were made from that pharmacy. For the first eight

months only nine drinks were sold each day. The name Coca-Cola was suggested by

Pemberton's book-keeper, Frank Robinson. He penned the name Coca-Cola that is famous

today. Coca-Cola was sold in bottles for the first time on March 12, 1894, and cans of Coke first

appeared in 1955.

The Coca-Cola Company merged some of its company-owned operations with two large

ownership groups that were for sale, the John T. Lupton franchises and BCI Holding

Corporation's bottling holdings, to form Coca -Cola Enterprises Inc. The

Company offered its stock to the public on November 21, 1986. The adjusted price per share is

$5.50. The company became stronger when after merger with the Johnston Coca-Cola Bottling

Group, Inc. (Johnston) in December 1991. Presently The Coca-Cola Company is the largest soft

drink company in the world. Every year 800,000,000 servings of just "Coke" are sold in the U.S

alone.

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Vision

To achieve sustainable growth, the company has established a vision with clear goals.

Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.

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

Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples; desires and needs.

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

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

Mission

It declares the purpose as a company and serves as the standard against which the company weighs the actions and decisions. It is the foundation of company manifesto.

To refresh the world in body, mind and spirit. (Market, Customer, Philosophy)

To inspire moments of optimism through the brands and actions. (Products)

To create value and make a difference. (Self concept)

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The Corporate Objective

Strategic Goals

These strategic goals are decide by the top management with consultation by the parent

company head quartered at Singapore. They are:

• To continue to be an organization providing the quality products to the valuable customers.

• To select and retain the professional people for the organization.

• To project an outstanding corporate image.

• To satisfy the customer through extra ordinary service and an excellent service along with the

complete tactical and operational support.

Tactical Goals

The top management of the company on an annual basis devises these goals together with the

consultation of the lower level employees.

Operational Goals

Operational goals are decided by the top management in consultation with the lower level

employees. They are following the concept of management by objectives (MBO). Each

employee is assigned its goals and is told what is expected of him and then he is evaluated on

the basis of certain rules and regulations followed evenly by the company.

Product Line

The Coca-Cola Company has on occasion introduced other cola drinks under the Coke brand

name. The most famous of these is Diet Coke, which has become a major diet cola. The other

cola drinks are also exists such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola

Company owns and markets other soft drinks that do not carry the Coca-Cola branding, such as

Sprite, Fanta, and others.

Coca Cola Company deals mainly in soft drink industry and these are some of its major brand. It

also deals in soda and mineral water through the brand name Kinley.

Diet coke: Diet coke was born in 1982 and became the no. 1 sugar free soft drink in diet

conscious America. It is also known as coca cola light drink in some countries. Now, Diet coke is

the no. 3 soft drink in the world.

Thums up: Thums up is known as strong fizzy taste. Thums up was introduced in 1977 and it

was acquired by coca cola company in 1993.

Sprite: Sprite is sold more than 190 countrues and it is the no. 4 soft drink in the world. Today.

Sprite is one of the fastest growth soft drink in the world.

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Limca: the soft drink first launched in 1971 and from then it is one of the thirst choice of

millions of customer.

Fanta: over the year fanta has occupied a strong marketplace. Fanta stands for its vibrant

colour, tempting taste and tingling bubles. This drink is very favourite to the female consumers.

Maaza: Maaza launched in 1976 and in 1993 coca cola aquire maaza. It is dominates in fruite

drink category.

Strategies

Positioning Strategy

It means that a company tries to give image to its product in the mind of the customers. To

give a true and positive picture of the product is the best positioning. The company should

promote its good points or comparative advantage which it has over its competitor.

Differentiation Strategy

There are many bases on which a product can be differentiated but Coke has differentiated its

product on the following base:

Product Differentiation: Coke differentiates its product from its competitors on the basis of

brand, quality and taste.

Image Differentiation: Logo is used for image differentiation. Logo is what establishes a brand

name in the consumer mind. It is the brands identification, signature and image.

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Promotional Strategies

Price Strategy Trade Promotion:

Coca Cola Company gives incentives to middle men or retailers in way a that they offer them

free samples and free empty bottles. By this these retailers and middle man push their product

in the market. That's why coca cola seen more in the market. They have a good sale in the

market because according to the expert which product seen more in the market that sells

more."Seen as sold".

Sale Promotion

Coca Cola Company also does sponsorships with different college and school's cafes and

sponsors their sports events and other extra curriculum activities for getting market share.

Normally they keep their freezers near the entrance of the stores. Sale Promotion Company

also does sponsorships with different college and school's cafes and sponsors their sports

events and other extra curriculum activities for getting market share.

Getting shelves

Coca Cola gets or purchase shelves in big departmental stores and display their products in

those shelves in that style which show their product clearer and more attractive for the

consumer.

Different sales channel :

Coca Cola Company makes two types of selling

o Direct selling

o Indirect selling

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1. Direct Selling: In direct selling they supply their products in shops by using their own

transports. In this type of selling company have more profit margin.

2. Indirect Selling : They have their whole sellers and agencies to cover all area. For

providing their product in good manner company has provided infrastructure these

includes, Vizi cooler, Freezers, Display racks etc.

Advertisement Strategies

Coca Cola Company use different mediums for advertisement.

• Print media

• Pas material

• TV commercial

• Billboards and holding

Competitive strategies

Coca-Cola is a dominating force in the beverage industry and sets a very high standard of

competition. Research shows that its trademark is recognized by over 94% of the world’s

population. There are many factors contributing to Coca-Cola’s success:

Marketing:

Coca-Cola was among the pioneers of advertising techniques and styles used to capture an

audience. It was around 1900 when Coca-Cola began presenting their signature drink as a

delicious and refreshing formula. This slogan has been repeated for over the last 100 years for

selling Coke all over the world. The image has been subconsciously installed in our brain by the

advertising campaigns.

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Innovation:

Coca-Cola has been able to survive in the ever changing market because of its ability to

systematically innovate and deliver new products. It was apparent that the market was

changing and in order to keep up with these changes, Coca-Cola had to move from a single core

product to a total beverage company. The company began operating in a decentralized

environment that was unfeasible in previous years. Now Coca- Cola offers nearly 400 different

products in and is still dominating the beverage industry. This is made possible by the

company’s ability to innovate and adapt to changing markets.

Factors Affecting Sales

There are so many factors, which affect the sale of coke. Here we are discussing two major

factors which effects coke.

Per capita income

Weather

Per Capita Income

This is major factor that affects the sale of this soft drink. Because, every passing year the

budgets are becoming very strict and tight in order to purchase things. So the disposable

incomes of the people are coming down. They spend heavily on rents, utilities, and education

and basic necessities and after that when they get extra money they think about this soft drink.

So the decreasing per capita income effects badly in selling and production of this soft drink.

Weather

Weather is also the major factor in effecting the Coke’s selling. This is underdeveloped market

so the coke’s consumption in summers is 60% and in winters is 40%.

Threats from Competitors

Price is the major threat. Though the price goes certain beyond the exact price whether come

down or go higher its effects the consumption of soft drink. Because when the prices go higher

people go for the substitute of “coke” i.e. Pepsi and when price goes down the people think

that there is must be some thing wrong in it. It all depends on customer’s perception. So, price

is an important factor for the success of the company.

The PESTLE Analysis

A scan of the external macro-environment in which the firm operates can be expressed in terms

of the following factors:

Political

Economic

Educational

Social

Technological

Political Analysis for Coca-Cola

The following are some of the factors that could cause Coca-Cola company's actual results to

differ from the expected results,

Changes in laws and regulations, including changes in accounting standards, taxation

requirements, (including tax rate changes, new tax laws and revised tax law

interpretations) and environmental laws in domestic or foreign jurisdictions.

Changes in the non-alcoholic business environment. These include, without limitation,

competitive product and pricing pressures and their ability to gain or maintain share of

sales in the global market as a result of action by competitors.

Political conditions, especially in international markets, including civil unrest,

government changes and restrictions on the ability to transfer capital across borders.

Economic Analysis for Coca-Cola

Economic factor can affect the consumption of soft drinks. When there is economic crisis all

over the world people buy their basic need products such as food, cloths etc. As a result of this

the sales of coke goes down. But as the economy recover slightly consumers are now resuming

their normal habits, going to the malls, car shopping, and eating out at restaurants, it create

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positive impact on the sales of coca cola. Again, If the economic conditions of the country is not

that strong and Coke increases its Price in this situation. Then it would impact highly negative.

And inflation is also not a good position for any country’s production point of view. It also

impacts highly negative in the Coke’s production.

Educational

The Coca-Cola Company has always believed that education is a powerful force in improving the

quality of life and creating opportunity for people and their families around the world. All over

the world, the coca cola company is involved in innovative programs that give hard-working,

Knowledge-hungry students books, supplies, places to study and scholarships.

Social Analysis for Coca-Cola

As people are more health conscious day by day, many of them are switching to bottled water

and diet colas instead of other alcoholic beverages. Consumers from the ages of 37 to 55 are

also increasingly concerned with nutrition. Since many are reaching an older age in life they are

becoming more concerned with increasing their longevity. This will continue to affect the non-

alcoholic beverage industry by increasing the demand.

Technological Analysis for Coca-Cola

Technological change creates opportunities for new products and product improvements and

of course new marketing techniques. Some factors that cause company's actual results to differ

materially from the expected results are as follows:

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The new technology of internet and television which use special effects for advertising

through media. They make some products look attractive. This helps in selling of the

products.

Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are

easier to carry and one can bin them once they are used.

Due to introduction of this machineries the production of the Coca-Cola company has

increased vastly then it was few years ago.

SWOT Analysis

Strength

World’s leading brand

The company has a leading brand value and a strong brand portfolio. . Business-Week and

Interbrand, a branding consultancy, valued Coca-Cola at $67,000 million in 2006. The company

owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta.

Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry

Coke and Coke with Lemon. Coca cola has made huge amount of investment in promotional

activities all over the world. Consequently, Coca-Cola is one of the best recognized global

brands.

Large scale of operations

Coca-Cola has a large scale of operation with revenues in excess of $24 billion. Coca-Cola is the

largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and

syrups in the world. Coca-Cola owns and operates 32 principal beverage concentrates and/or

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syrup manufacturing plants located throughout the world. The company’s large scale of

operation allows enhancing its revenue.

Strong revenue growth in three segments:

Coca-Cola’s revenues recorded a double digit growth, in three operating segments. These three

segments are Latin America, ‘East, South Asia, and Pacific Rim’ and Bottling investments.

Revenues from Latin America grew by 20.4% during fiscal 2006, over 2005. During the same

period, revenues from ‘East, South Asia, and Pacific Rim’ grew by 10.6% while revenues from

the bottling investments segment by 19.9%. Together, the three segments of Latin America,

‘East, South Asia, and Pacific Rim’ and bottling investments, accounted for 34.8% of total

revenues during fiscal 2006. Healthy revenues growth rates in these segments contributed to

top-line growth for Coca-Cola.

Global Distribution

Coca cola is available in each and every part of the world as it is operating globally in more than

200 countries.

Innovation

It always launches innovative products like diet coke, vanilla coke and many others.

Research and development:

Coca cola has strong research and development department.

Brand loyalty

Coca cola enjoys the brand loyalty from the customers

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Weakness

Negative publicity

The company received some sort of negative publicity. For example, In India during September

2006 The Company was accused by the Center for Science and Environment (CSE) of selling

products containing pesticide residues. Coca-Cola products sold in and around the Indian

national capital region contained a hazardous pesticide residue. These pesticides included

chemicals which could cause cancers, damage the nervous and reproductive systems and

reduce bone mineral density. Such negative publicity could adversely impact the company’s

brand image and the demand for Coca-Cola products.

Decline in cash from operating activities:

The company’s cash flow from operating activities declined during fiscal 2006. Cash flows from

operating activities decreased 7% in 2006 compared to 2005. Net cash provided by operating

activities reached $5,957 million in 2006, from $6,423 million in 2005. Coca-Cola’s cash flows

from operating activities in 2006 also decreased compared with 2005. Declining cash from

operating activities reduced availability of funds for the company’s investing and financing

activities.

Opportunities

Possible growing opportunities

In a country like India the per capita consumption of coca cola per year is the lowest in the

world that is only 6 per person. So, there are a opportunity of enhance market share.

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Coca Cola Bottling System

It also allows the company to take advantage. Most of the bottling companies are under the

control of coke which gives that much of flexibility in the pricing strategy where the rival cola

giant pepsico does not have its own bottling companies. So, they can not enjoy that much of

flexibility the pricing strategy of PepsiCo.

Expansion into new market

Coke is enjoying so good brand name. So if they enter in any other industry with same brand

name it can also succeed in that industry.

Merge

Merge with other global business is another option in front of them to expand their business.

Threats

The company faces intense competition in various markets from regional as well as global

players. The company also faces competition from various nonalcoholic beverages including

juices and nectars and fruit drinks.

Dependence on bottling partners

In 2006, approximately 83% of its worldwide unit case volumes were produced and distributed

by bottling partners in which the company did not have any controlling interests. Many of its

bottling partners have the right to manufacture or distribute their own products or certain

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products of other beverage companies. These bottlers may give more resources to business

opportunities or products other than those beneficial for Coca-Cola.

TARGET MARKET OF COCA-COLA

Coca-Cola takes every customer as target and potential who is thirsty.

All age groups are being targeted but the most potential is the age group from 18-25 that

covers around 40% of total age segment.

AGE: The target market for the Coca-Cola is based on age. The audience of Coca-Coal

is youngester or youth.

It has wide range of targeting. It ranges from the age of 15-25 and reaches to 40.

Their targeting is not based gender but the results show that both genders like this

product and use it.

GENDER: Coca-Cola segments pakistani market with a percentage ratio of 58%

females and 42% males.

Life style; busy life style( face shortage of time) and mobile generation.

Family; dependent on their family.

Occupation; students and family oriented people.

NATURE: Fun lovin and entertainment loving.

SOCIO ECONOMIC STATUS: Upper lower and lower class

MARKET SEGMENTATION OF COCA-COLA

Coca-Cola serves its products using mass market technique. Which obviously falls in

undifferentiated marketing and undifferentiated marketing means no segmentation, but

there are minor factors on which we can say that the coke segments its products and then

targets the customers somehow.

These factors are as follows

GEOGRAPHIC SEGMENTATION .

INTERNATIONALLY: Coke segments its products country wise and region wise.

The most important things is the taste and quality.

It varies according to the taste and income level of the people in that country. I.e.: third

world countries are given low quality and taste.

CLIMATIC: In coke marketing, main idea is to serve it cold, so we that they focus on hot

areas of the world.

i.e.: middle east etc and their sale increase in summer.

LOCALY: In pakistan the coke segments more in urban and suburban areas as compare

to rural areas.

DEMOGRAPHIC:

AGE:. Coke segments the small children introducing tastes like vanilla, lime and cherry.

They focus children from 4-12.

Coke specifically target more young than older.

FAMILY TYPE:. Coke introduces its economy pack and that’s how the focus family and

groups.

INCOME:. Coke segments different income levels by packing.

For small income people it has small returnable glass bottle.

For middle people it has small non-returnable bottle.

For higher income people it has Coke Tin.

PSYCHOGRAPHIC.

All psychographics variables the social class, lifestyle, occupation, level of education and

personality Coke segments everyone.

But again its there packaging which is different for different consumers.

BEHAVIORAL:

OCCASION:. Coca-Cola segments different occasions which are celebrated in the

country.

Basant has become an international event identity of the culture of pakistan.

The crdit for making celebrations available for almost everyone largely goes to Coca-

Cola Company.

SALES STRATEGIES OF COCA COLA

In order to achieve this mission, Coca Cola create value for all the constraints it serve, including consumers, customers, bottlers, and communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:

1. Consumer demand drives everything Coca Cola do.2. Brand Coca Cola is the core business3. Serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day.4. Be the best marketers in the world.5. Think and act locally.6. Lead as a model corporate citizen.

The main strategies discussed here are as follows:

• STRATEGIC PLANNING• STRATEGIES OF QUALITY• EXPANDING TARGET MARKET• STRATEGIES OF GETTING GOALS I.E. "HIGH PROFITS"• MARKETING STRATEGY• PRICE STRATEGY• PROMOTION STRATEGIES• DISTRIBUTION CHANNELS• FACILITATING THE PRODUCT BY INFRASTRUCTURE• ADVERTISEMENT• SALES PROMOTION ACTIVITIES

The details are as follows:

STRATEGIC PLANNING

In last years, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the world's leading company. Company accomplished the crust of it's strategy as• Worldwide volume increased by 4 percent with strong international growth of 5 percent.• Earnings per share grew by 82 percent.

• Return on common equity grew from 23 percent to 38 percent this year.• Return on capital increased from 16 percent in 2000 to 27 percent.• The company has generated free cash flow of $3.1 billion, up from $2.8 billionThe marketing strategy for the future is as follows:• Accelerate carbonated soft-drink growth, led by Coca-Cola.• Selectively broaden the family of beverage brands to drive profitable growth.• Grow system profitability and capability together with our bottling partners.• Serve customers with creativity and consistency to generate growth across all channels.• Direct investments to highest potential areas across markets.• Drive efficiency and cost-effectiveness everywhere.

STRATEGIES OF QUALITY

After Micro and macro analysis Brand "coke" is primarily role1. Enhance competition moments2. When people watch cricket3. Through commercialization4. Fun time

EXPANDING TARGET MARKET

In last 2 years Coke has come back in aggressive manner.• Consumer has choice• Attractive brand name• Brand differentiatingConsumer Has Got Choice:Now the consumer has got choice. Because now they know the name of another big brand, though coke is the 2nd best name but it can get a better position after some timeAttractive Brand Name:Now the consumers know the Name of Coke, because Coke is the name, which is the most popular after the word "ok". So people can better differentiate brands with each other.Brand Differentiation:

Now different companies have got different brand names. So, people can distinguish between brands. Two major brands "coke" and "Pepsi" also have brand names.\STRATEGIES OF GETTING GOALSi.e. "HIGH PROFITS"

To increase the price is the least thing, which Coke can adopt. There are so many ways through which Coke can increase the profits. Some major ways are as follows.• Volume can be increased• Interest level of consumers• To take part in energetic festivals

MARKETING STRATEGY

What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Pakistan buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business.

PRICE STRATEGYTrade Promotion:Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market following ”Seen as sold"

Different Price in Different Seasons:Some times Coca Cola Company change their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan.So in winter they reduce their prices to maintain their sales and profit.

PROMOTION STRATEGIES

Getting shelves:They gets or purchase shelves in big departmental stores and display their products in that shelves in attractive style.Eye Catching PositionSalesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores.Sale PromotionCompany also do sponsorships with different college and school's cafes and sponsors their sports events and other extra curriculum activities for getting market share.

DISTRIBUTION CHANNELS

Coca Cola Company makes two types of sellingDirect sellingIndirect sellingDirect SellingIn direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.Indirect SellingThey have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these includes:• Vizi cooler• Freezers

• Display racks• Free empty bottles and shells for bottles

ADVERTISEMENT

Coca Cola Company use different mediums• Print media• Pos material• TV commercial• Billboards and holdings

HOW COKE DETERMINE THE YEARLY BUDGET

Coke determines its yearly budget by the• Sales volume• Profitability• Target volumeSales Volume:Coke determines its yearly budget through the sales volume. They first concentrate on the thing is "what is the condition of their sales?" if the condition is good of their sales then they definitely increase their production and sales volume.Profitability:The second thing through which they determines budget is the "profit" .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. To get profit is the first priority of the Coke.Target Volume:To run the business every industry increases volume in specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target.Coke did the same.

SALES PROMOTION ACTIVITIES

Coca-Cola CricketCoca-Cola ConcertsCoca-Cola Food MelaCoca-Cola Party in a Park Coca-Cola Pet PromotionCoca-Cola Ramzan Campaign

Ethical issues concerning Coca-Cola in India

Situation Analysis:

In 2003, the community near the Coca-Cola bottling plant in Kerala, India protested against the

water scarcity and polluted water that resulted from its bottling operations. The allegations

caused the closure of the bottling plant. Coca-Cola was banned in the state for these unethical

business practices. Soon after the incident, the Center for Science and Environment (CSE), a

Delhi-based environmental NGO, released a report indicating the presence of pesticides, greatly

exceeding European standards, in a dozen popular beverages sold under the brand names of the

Coca-Cola Company and PepsiCo. This report raised serious protests all over India on the soft

drink industries, especially Coca-Cola and PepsiCo. Together, the companies have 90% of the

India's soft drink market.

In response to the allegations, Coca-Cola denies them by saying their products are safe and

questions the lab reports presented by CSE. The University of Michigan placed the Coca-Cola

Company on probation in 2006, and asked for an independent assessment of its operations in

India. The soft drinks were examined by an independent lab, The Energy and Resources Institute

(TERI). According to the reports the soft drinks were declared safe and pesticide free. However,

the CSE claimed that only the water was tested and not the other ingredients; ingredients such as

artificial flavors and sugar. After the reports from TERI were published the government declared

soft drinks as safe. However, the problems with some bottling plants still remain, due to the

depleting levels of ground water, day by day.

Critical Issues/Problems:

Solid waste and water issue: The communities near the bottling plant in India complained about

the passage of sludge as fertilizer, causing health and environmental damage. The most

important issue concerning these communities is the depletion of water levels caused by the

Coca-Cola bottling operations which have drastically reduced availability of water for irrigation

purposes.

Pesticides in soft drinks: The other issue concerning human health caused by Coca-Cola is that

their bottled water and soft drinks contain pesticides which were tested by the reputed NGO,

CSE.

Dual product standards: Coca-Cola is accused of having dual standards in terms of their

products and safety measures concerning human health with respect to USA, Europe and India.

Community issue: These allegations affected Coca-Cola largely with its sales and also caused the

closure of one of their bottling plants in Kerala, India. Additionally, Coca-Cola’s products are

banned in the state of Kerala, India.

Action Taken:

Coca-Cola Company, India thought seriously about its corporate responsibility and witnessing

huge sales losses. In order to gain trust among the local communities near the bottling plant, they

improved their business practices and reduced the water usage by 34%. Through the practice of

rainwater harvesting, Coca-Cola returned substantial water to the aquifers. They have stopped

distributing sludge as Biosolids(fertilizers) to farmers for agriculture use, and have taken

initiatives with the Indian government to encourage the development of additional solid waste

disposal sites. The water used for making soft drinks is treated with activated carbon filtration

and run through a purification process to ensure that the water is free of pesticide residue. The

ingredients are also closely monitored and undergo various quality checks. According to the

company’s factsheet, they strictly follow the product standards which are the same all over the

world.

Coca-Cola has also partnered with the NGO’s and the government to provide medical access to

poor people through regular health camps. In addition to their outreach efforts, the company

committed itself to environment responsibility through its business operations. For example by

following the practices of conserving energy and by adhering to the ban on purchasing CFCs,

Coca-Cola exhibited greater corporate responsibility.

The allegations in other ways helped Coca-Cola Company, India to show their corporate social

responsibility and to maintain good product quality standards. The initiatives all over India

helped them reach villages for a good cause and also indirectly marketed their products with

establishing a trust among the public. After all these allegations, the CSE is still not convinced of

the quality of the product. Therefore, Coca-Cola must prove that they have upgraded their lab

with sophisticated instrument which is capable of measuring pesticide residue in soft drinks. As

per the recent reports by CSE, they claim that the pesticide residue has gone up 27 times higher

than expected level by the Bureau of Indian Standards (BIS) (in 2006).