Professional Documents
Culture Documents
1.c Introduction
2.c Objectives
5.c Limitations
12.c Questionnaires
13.c Bibliograp
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obtain what they need and want, through creating, offering and exchanging
c Philip Kotler.
the ownership and possession of goods and services. It is that part of economics
which deals with the creation of time, place and possession utilities and that
phase of business activity through which human wants are satisfied, by the
product and service specifications and then in turn helping to make it possiblfor
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more and more of consumers to enjoy more and more of these products and
services.
Companies have to identify long and short term marketing opportunities and
research the selected market by measuring and forecasting attractiv eness of the
given market. Having selected the market, the companies need to develop a
deciding on marketing expenditure s and the marketing mix. The final step is
marketing plan.
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Coca-Cola Company, nourishing the global community with the world¶s
largest
selling soft drink since 1886, returned to India in 1993 after a gap of 16 years
giving a new thumbs-up to the Indian Soft Drink Market. In the same year,
the
Company took over ownership of the nation's top soft -drink brands and
bottling
network. No wonder, our brands have assumed an iconic status in the minds
of
the consumers. Coca-Cola serves in India some of the most recalled 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 ,Pulpy Orange.
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1.c To understand & explain the Horizontal Expansion Concept with
respect to HCCB operations at retail end.
2.c To enlist the benefits of Horizontal Expansion for the company at retail
end.
5.c To study the behavior of sales man and distributer towards shopkeeper.
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1) Economies of scope c
The notion of economies of scope resembles that of economies of scale.
Economies of scale principally denote effectiveness related to alterations in the
supply side, for example, growing or reducing production scale of an individual
form of commodity. On the other hand, economies of scope denote
effectiveness principally related to alterations in the demand side, for example
growing or reducing the range of marketing and supply of various forms of
products. Economies of scope are one of the principal causes for marketing
plans like product lining, product bundling, as well as family branding.
2) Economies of scale c
Economies of scale refer to the cost benefits received by a company as the result
of a horizontal merger. The merged company is able to have bigg er production
volume in comparison to the companies operating separately. Therefore, the
merged company can derive the benefits of economies of scale. The maximum
use of plant facilities can be done by the merged company , which will lead to a
decrease in the average expenses
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Synergy
Growth or expansion
Risk diversification
For attaining economies of scale, there are two methods and they are the
following:
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Uc Through this study company can know about its growth compared to its
major competitor
PepsiCo.
Uc This study will also help to the company to know about their new concepts
in the market.
Uc This study is helpful to find out the sales trends of the Coke products and its
concept
Uc This study is also helpful to find out the outlets efficiency which are coming
under RED.
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Uc This study directly deals with interaction of different kinds of people in the
and Push works in the corporate. (For push ± at the time of pulpy promotion,
for pull at the time of more demand of sprite.)
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Once the problem is identified, the next step is the research design.
Research design is the basic framework of rest of the study. A research design
specifies the methods and procedures for conducting particular study.
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The primary data is fresh information collected for a specified study. The
primary data can be gathered by observational, experimentation and survey
method. Here the entire scheme of plan starts with the definition of various
terms used, units to be employed, type of enquiry to be conducted, extent of
accuracy aimed etc.,
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The secondary data refers to data, which already exists. The secondary data
collect from internal records, business magazines, company websites and
Newspapers.
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The study is based on !
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was collected from the Company¶s website and MD ¶s Sales Presenter as well
as Primary Data was collected through structured questionnaire. The
questionnaire was designed by keeping all the objectives of the study in
mind.
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1.c The training was for shorter period of time that is why it was not
possible to carry out a detail study.
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When developing an market business you will always be looking for ways to
maximize your revenue, and expanding your fields of operation is often a
possibility that surfaces when you are evaluating the future of your businesses.
While common to most of those who have formally studied business
management, the concepts of Vertical Expansion and Horizontal Expansion are
not always recognized by small time internet entrepreneurs such as myself.
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Generally when facing the option of expansion, you will have two initial paths
to choose from, and the way we usually seperate them is by classifying them as
horizontal or vertical. So what separates these two options?
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ccccccccccccIt is often referred to as Vertical Integration as well, but as I will point
out shortly, for independant online publishers, expansion is a far more accurate
word than integration. When you expand your business vertically, y ou try to
increase your profits by expanding and improving on your existing core
activities, and moving tasks you¶ve previously outsourced inhouse.
Common to both types of expansions are that they both involve a certain
amount of risk, horizontal even more so than vertical. When expanding
horizontally as an online publisher you will be required to either outsource the
information you will provide, or climb a steep curve of learning in order to gain
the proper insight in order to be able to provide quality content on the new
subject.
When expanding vertically, the curve of learn ing can be equally steep, or even
steeper, because often it means that you will have to learn a completely new
trade that you don¶t have any prior experience with what so ever. Your already
existing access to knowledge, whether it is in yourself or already employed
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people, should therefore be considered when considering either forms of
expansions
&c 10 !6c behind this type of mergers is to achieve economies of scale in
the production procedure through carrying off duplication of installations,
services and functions, widening the line of products, decrease in working
capital and fixed assets investment, getting rid of competition, minimizing the
advertising expenses, enhancing the market capability and to get more
dominance on the market.
The objective should be thought from different perspective point Of view as mentioned below
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When we will entered into the market then to approach the outlet we
have to observe the type of outlet before we visited the outlet they have been
using from which kind of products like as pepsi. If they are being used to
display the pepsi products. After we should visited the pepsi outlet then we need
to introduce our coca cola products to that outlet. After we should introduce our
products to explain the profits then we can interact closely with them. We need
to observe which type of outlet th ey are using after we observed the outlet
models. If it is the grossory, convenience, E&D models. What type of cooler is
expecting from our company? We should provided our cooler to satisfy them as
well as simantaneuously, to expand our market business res pectily.
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because Vertical Expansion has limited preview so COKE is great believer in
Horizontal Expansion and this strategy helped to the company to maintain its
leadership in the soft drink industry.
India is a big country having diversified taste and appearance and same
character is reflected in their demography. Horizontal Expansion helps the
company to serve the more people and more customers touch point because
in the waste country many customers commutes.
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To do Horizontal Expansion more efficiently we made a profit story and talk to the
shopkeepers according to that story.
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# c ) hello sir, I am from Coke and I have a proposal that will surely
increase your income. May I present you?
# c 3 Sir if you will start to sell coke then your overall sale will be
increased and it is not tough to sell coke because Coke is the leader in beverage
industry and a very well known brand.
# c 3 Sir, you are selling Chips, Pastry and snacks. And these products
have a very 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.
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# c) Sir if you are really interested to explore through Coke, you may be
able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 600 ml and 1 case of 2
liter. And for start selling Coke you need to invest only Rs. 420. We will provide
you 3 empty carets
Sir your daily profit from coke (in Peak season) = Rs. 154
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= 1811.29%
&(c) 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.
# c) Sir that¶s a really nice question, we can understand your anxiety and
we have to offer much more for this. We have minimum Rs. 10 offer on 200 and
300 ml and Minimum Rs. 20 on Pet bottles. More over if you are keeping your
refrigerator for the storage purpose of Coke if will be all right as the refrigerator
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can work by consuming power as low as 2 units per day which will cost you Rs. 8
per day.
&(c) Yes, I think it will be a nice idea to accept your offer.
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Uc Through this study company can know abo ut its growth compared to its
major competitor
PepsiCo.
Uc This study will also help to the company to know about their new concepts
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Uc This study is helpful to find out the number of outlets coming under RED
concept
Uc This study is also helpful to find out the outlets efficiency which are coming
under RED.
Uc This study directly deals with interaction of different kinds of people in the
organization which helps me to und erstand the corporate communication
system.
Uc This study also helps me to understand how the marketing strategy like Pull
and Push works in the corporate. (For push ± at the time of pulpy promotion,
for pull at the time of more demand of sprite.)
£c Provides Incremental Volume & Revenue for Business
£c By horizontal expansion there will be more outlets of our product In
the market which will sell our product in more quantity. This will
generate incremental revenue for the business.
£c Helps Improve Route Productivity
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£c Increase in market power over supplier and downstream market
channels
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B t expansi n techni es are meant for increasing sales vol mes. B t in
hori ontal expansion company can earn more profits by spending less. Let s
see the profit story of hori ontal expansion
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Apart from the other benefits of horizontal expansion, its main benefit is to
generate incremental revenue for the company. During the project I studied
strategies and analyzed the market. My major job was to use different tools
provided by the company for horizontal expansion like refrigerator, ice box
etc. and to open outlets for coca cola products. With my other team mates I
targeted the market of Ghaziabad and our outcome is as follows: -
Hence we can see the huge revenue generated by the horizontal Expansion.
It also increased the visibility and market share of the coca cola products.
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At the core of the beverage industry is the carbonated soft-drink category. The
dominant players in this area (Coca Cola, Pepsi, and Cadbury -Schweppes) own
virtually all of the North American market¶s most widely distributed and best-
known brands. They are dominant in world markets as well. These companies¶
products occupy large portions of any supermarket¶s shelf space, often covering
more territory than real food categories like dairy products, meat, or produce.
As with many mature retail industries, the beverage giants have a problem ±
growth in the sales of their flagship carbonated products are at a near standstill
in the key U.S. market, with 1% growth or less. After years of rapid growth, it
seems that the average American can¶t drink any more flavored, fizzy soda
water. To remedy that, these three companies are rapidly expanding both
globally as they enter and promote new markets for existing products and
locally, as they add products from adjacent beverage categories in the
supermarket, in categories that are still expanding. We'll talk about these areas
in a later posting.
The prototype of all marketing and branding struggles, the ³Cola Wars´ keep
expanding. The Pepsi and Coca Cola keep rolling out the big guns: dueling pop
stars, and new branded products in the form of ³ !##c( ´ and ³!c
#.´ . They are fighting on the TV, in the fast-food restaurants, and in the
supermarkets; they are also dueling in the schools. One of the biggest pushes of
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the last few years has been convincing school districts, universities, and other
institutions to go all-Coke or all-Pepsi, in return for a (small) cut of the gross
sales.
Selling costly sugared water and building an increasing demand for it, even in
Third World countries, involves marketing in its purest form, unsullied by a ny
preexisting need or local tradition. Markets in Eastern Europe, China, India, and
Mexico, among others, are expanding fast, and both Coke and Pepsi are finding
local partners (bottlers) in these countries to keep extending their reach. And
while the American market may be mature, there¶s still an opportunity
worldwide to replace hot beverages like coffee and tea that require some
preparation with these cold, iconic. c
All this worldwide activity can¶t disguise an unpleasant core reality for the
vendors: U.S. carbonated soft drink sales increased only 0.5% in the year 2002.
Although total sales for the industry was up slightly, per capita consumption
was down for the third year in a row In other words, domestic soft drink growth
is not keeping pace with population growth.
In fact, Coke and Pepsi have a third major rival on the bottled soft drink
shelves, namely Cadbury-Schweppes. The big three carbonated
beverage makers now exist in a stable oligopoly those changes only by small
increments and which controls over 90% of the market. Over the years,
Cadbury-Schweppes (the result of a merger between a British candy company
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In past decades, the carbonated beverage section had been the beneficiary of an
amazing record of growth, where consumption has more than doubled over the
past 25 years. Americans consume twice as much soda as they did 25 years ago,
up from 22 gallons per person per year to over 56.
In 2000, these three companies had almost exactly the same share of the U.S.
market they had in 1999, namely:
Brands
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While individual flavors go up and down, the relative market share of the big
three changes at a glacial rate. The next biggest North American soda company,
the Canadian-based Cott Beverage Company, had only a little over 3% of the
market and that company specialize in supplying private label soda to
supermarkets and other chains.
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marketing muscles, more sales and market presence. Pepsi gave itself a small
boost because of the popularity of newly introduced Mountain Dew Code Red,
a hyper-caffeinated soda. Coke¶s numbers declined slightly. The market share
figures in 2001.
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It¶s pretty indicative of this mature market that the only major move in market
share comes through a takeover. Moreover, the takeover targets that are left are
so small that the biggest remaining brand doesn¶t make more than 1%
difference in total volume.
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In the last part of our look at the beverage business, we noted that oligopolies
Coca Cola, PepsiCo, and Cadbury Schweppes had "flooded" a mature market,
so that there was minimal growth potential in the carbonated beverages
category. So, how can these companies grow, something all oligopolies are
compelled to do? First, by expanding internationally. Second, by acquiring or
adding new products in other beverage areas, which show both faster growth
and less well-defined competition. In fact, other beverage types have only in the
last decade come into focus as separate, important categories.
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So the search for new beverage footholds has become the second front of the
Cola Wars. There is a scramble for new territories in beverage shelf space, and
Coke and Pepsi are investing heavily. These alternative beverages areas were
established by startup or small cap companies, including Snapple and Arizona
Iced Teas, Ocean Spray and Nantucket Nectars, SoBe and Calistoga. The
emerging categories began to look like both a threat and an opportunity for the
big three.
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Strict division compliance with eKO system ensured that the bottling plants
were ready to meet the tough evaluation criteria and standards of the ISO
auditors.
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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 a unique 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 Cola
gained 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.
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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 then CEO 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 basically a cola
drink, but the company never claimed it as such. The formula was just as
closely guarded as the famous Coke formula. During the same time, the
owners of Coca-Cola¶s bottling plant, Pure Drinks Ltd., launched Campa
Cola and Campa Orange, both of which had a higher dose of carbon dioxide.
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The Thums Up logo was a logo showing a red thumbs up hand gesture
with a slanted white serif typeface. This would later be modified by Coca-
Cola with blue strokes and a more modern-looking typeface. This was mainly
done to reduce the dominant red color in their signage.
The picture shows the thums up mountain or thums up pahaad(in
Hindi)manmad hills which has a natural top l ike thums up logo and is a
popular sight from trains .Its famous caption until the early `80s was, ³Happy
days are here again´, coined by then famous copywriter Vasant Kumar,
whose father was spiritual philosopher U. G. Krishnamurti. Later it was
changed to "Taste the thunder!´.
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multinationals, Pepsi was the first to come in. Thums Up went up against the
international giant for an intense onslaught with neither side giving any
quarter. With Pepsi roping in major Indian movie stars like Juhi Chawla, to
thwart the Indian brand, Thums Up increased its spending in the Cricket
sponsorship. Then the capacity went from 250ml to 300ml, aptly named
MahaCola. This nickname gained popularity in smaller towns where people
would ask for "Maha Cola" instead of Thums Up. The consumers were
divided where some felt the Pepsi¶s mild taste was rather bland.
In 1993 Coca-Cola re-entered India after prolonged absences from
1977 to 1993. But Coca-Cola¶s 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$ 60 million
(considering the market share it had). Some assumed Parle had lost the
appetite for a fight against the two largest cola brands; others surmised that
the international brands seemingly endless cash reserves psyched-out Parle.
Either way, it was now Coca-Cola¶s, and Coke has a habit of killing brands
in its portfolio that might overshadow it. Coca-Cola soon introduced its cola
in cans which was all the rage in India, with Thums Up introduced alongside,
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.
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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 like
Seven Up and Sprite, and it has a slight flavor of ginger.
In 1992, when the government allowed Coca-Cola to return, at the same
time as it admitted Pepsi for the first time, Coca-Cola bought Limca, Thums Up,
Maaza and other drink brands.
Like other sodas, Limca is generally sold in glass bottles within India, which
are returned to the store or restaurant after the contents have been drunk. The bottles
are sent back to the manufacturer, washed and reused, because they are more
expensive than the soda itself.
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Limca also publishes the Limca Book of Records, a record book similar to
the
Guinness Book of Records. The Limca Book of Records details feats, records
and other unique statistics from an Indian perspective.
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Type Lemon-lime
Manufacturer The Coca-Cola Company
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 to the 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 blue label.
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Originating in Germany as Fanta Klare Zitrone ("Clear Lemon Fanta"),
Sprite was introduced to 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 in 1989
Global naming Sprite, as a lemon -lime soda, is referred to by consumers
around the world in a 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 to mean the same drink. In
South Africa, Sprite and Schweppes Lemonade are almost interchangeable.
In some parts of Switzerland, Sprite (or any other type of lemonade) is also
known simply as citra.
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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 restrictions on shipping between Germany and the
United States, the German bottling plant could not get Coca-Cola syrup. The
CEO of the plant, Max Keith, needed a product to keep the plant in operation
and devised a fruit flavored drink made from available ingredients.
Using apple fiber remaining from cider pressing and whey, a byproduct
from cheese manufacture,
Fanta was created and became quite popular. The original German
Fanta had a yellow color and a different flavor from that of Fanta Orange.
The flavor varied throughout the 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. On hearing that, salesman Joe Knipp spontaneously
arrived upon the name Fanta.
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Type Fruit juice
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1976
Variants Maaza Orange, Maaza Pineapple
Related products Slice, Frooti
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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 the first company to market orange juice
concentrate, allowing it to be distributed throughout the United States and
served year-round.
The Minute Maid company is now owned by The Coca -Cola Company, and
is he 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 rights for their venue, subsequently anointed
Minute Maid Park, and the company now owns 8.5% of the team.
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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 the government contract
for $750,000.
The war ended and the contract was canceled before the factory could
be built, but with investment, the company moved forward with a product.
Rather than selling powder to the public market, the company decided
to create frozen orange juice concentrate. A Boston marketing firm came up
with the name Minute Maid, like Minutemen, implying the juice was quick
and easy to prepare.
With limited funds for advertising, Fox himself went door to door
giving free samples, until demand skyrocketed. The ability to purchase fresh-
tasting orange juice at any time of year, far from where oranges are grown,
proved popular, and led to the company's national success.
The Minute Maid company was purchased by Coca -Cola in 1960.
In 1973, the company released the first ready-to-drink, chilled orange
juice product in the United States.
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Water, a thirst quencher that refreshes, a life giving force that washes all the
toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the
most basic need of life, the very sustenance of life, a celebration of life itself.
Kinly 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 safe and pure .
Kinley water comes with the assurance of safety from the Coca - Cola
Company. That is why they introduced Kinley with reverse -osmosis along
with latest technology to ensure the purity of their product. That¶s why they
go through rigorous testing procedure s at each and every location where
Kinley is produced. Because they believe that right to pure, safe drinking
water is fundamental. A universal need, that can not be left to chance.
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neither co and pc. It is found that 40% of outlet are needed to
horizontal expansion.
£c It is found that 39% are not using any vernacular freeze so there is a
chance to provide freeze in these area to give business or develop
business and increase market share
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£c Through the research it is found that boards are best display for outlets
£c Researcher found that gap between demand and supply is not good
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The following are the some suggestions that can be implemented to increase
the customer satisfaction and the profitability of the company for the horizontal
expansion of coacola
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The study concludes that the Hindustan Coca Cola Beverages Pvt. Ltd has to
strengthen its product line by introducing new flavors and new size s. It also has
to increase the stock holding and availability of cock brands through motivating
channel members by offering attractive schemes and incentives
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2. If there are no drinks in the outlet are you willing to sell soft drinks ?
. Yes .No
7. a. If the preference is Coke Co. then which product you prefer more
b.. If the preference is Pepsi Co. then which product you prefer more
c. If the preference is Parle Agro then which product you prefere more
. Frooti . Appy
9. Which of the following promotions affect the opening and retaining of outlets?
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10. Are you able access the different kinds of offers provided by the company every day
11. According to you which of the following offers will benefit your business
12. Do you think that the business of these soft drinks is seasonal
. Yes . No . Neutral
. Yes . No . Neutral
14. After opening the outlet how does the company response?
I. Delivery
II. Communication
Area :
Addres :
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