Professional Documents
Culture Documents
ON
RED
SUMMER
TRAINING
Project Report
For
WAVE BEVERAGES Pvt. Ltd.
The word at our command are very less to render our gratitude to all who help me
Nothing is a single man’s effort. Cooperation and coordination of various people go into
the successful implementation. It is a great pleasure to have the opportunity to extent
our heart-felt thank to everybody who helped me through the successful completion of
the research report. .First of all I would like to thank my project guide Mr.Ankit Garg
who kindled my path towards the completion of research project I offer appreciation to
my parents and all my friends for their ever-willing cooperation and moral support. And
at last but not the least, I thank the Almighty who is always with me.
INDEX
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TITLE PAGE NO.
ACKNOWLEDGEMENT
CHAPTER 1:
1.1 INDUSTRY PROFILE 4-11
1.2 COMPANY PROFILE 12-21
1.3 MISSION AND VISION OF COCA COLA COMPANY 22
1.4 PRODUCTS 25-30
1.5 ORGANIZATION STRUCTURE 43
1.6 WBPL PROFILE 46
1.7 SWOT ANALYSIS 50
CHAPTER 2:
2.1 INRODUCTION AND OBJECTIVES 53-59
2.2 RESEARCH METHODOLGY 60-61
2.3 REVIEW OF LITERATURE 62-65
CHAPTER 3:
3.1 ASSIGNMENT-1 66
3.2 MARKET SEGMENTATION 67-70
3.3 ASSIGNMENT-2 71
CHAPTER 4:
4.1 DATA ANALYSIS AND INTERPRETATION 72-82
4.2 EXECUTIVE SUMMARY 83
4.3 CONCLUSION 84
4.4 FINDINGS, SUGGESTIONS, RECOMMENDATIONS 85-87
4.5 LEARNING EXPERIENCE 88
REFERNCES
SCORING SHEET
CHAPTER 1
3
1. INDUSTRIAL PROFILE
The first marketed soft drinks (non-carbonated) appeared in the 17th century. They
were made from water and lemon juice sweetened with honey. In 1676, the Compagnie
de Limonadiers of Paris were granted a monopoly for the sale of lemonade soft drinks.
Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft
drink to thirsty Parisians.
JOSEPH PRIESTLEY
In 1767, the first drinkable man-made glass of carbonated water was created by
Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern
Bergman invented a generating apparatus that made carbonated water from chalk by the
use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be
produced in large amounts.
Soft drinks by definition are carbonated drinks that are non-alcoholic.
Carbonated soft drinks are also refereed to as soda, soda pop, pop, or tonic.
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-Carbonated
Since the early 1990’s Coca-Cola Corporation and PepsiCo have been
combating on what is known as the “Beverage Battlefield” in India. Today India is one
of the most sought after countries for foreign investments because of their continually
growing market opportunities. However during Coca-Cola and Pepsi’s attempts to
broaden their global consumer bases both companies encountered several obstructions
on their pursuits of conquering the Indian soft drink market.
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1.2 MARKET GROWTH
Soft drink market size for FY00 was around 270 m.n cases (6480mn bottles). The
market witnessed 5- 6% growth in the early‘90s. Presently the market growth has
growth rate of 7- 8% per annum compared to 22% growth rate in the previous
year. The market size for FY01 is expected to be 7000 mn bottles.
The soft drinks market till early 1990s was in hands of domestic players like
campa, thumps up, Limca etc but with opening up of economy and coming of
MNC players Pepsi and Coke the market has come totally under their control.
The distribution network of Coca cola had6.5 lakh outlets across the country in
FY00, which the company is planning to increase to 8 lakhs by FY01. On the
other hand Pepsi Co's distribution network had 6 lakh outlets across the country
during FY00 which it is planning to increase to 7.5 Lakh by FY01.
8
1.5 TYPES OF AVAILIBILITY PACKS OF SOFT DRINKS
Soft drinks are available in glass bottles, aluminum cans and PET bottles for
home consumption. Fountains also dispense them in disposable containers Non-
alcoholic soft drink beverage market can be divided into fruit drinks and soft
drinks. Soft drinks can be further divided into carbonated and non-carbonated
drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come
under non carbonated category.
The market can also be segmented on the basis of types of products into cola
products and non-cola products. Cola products account for nearly 61-62% of the
total soft drinks market. The brands that fall in this category are Pepsi, Coca-
Cola, Thumps Up, diet coke, Diet Pepsi etc. Non-cola segment which constitutes
36% can be divided into 4 categories based on the types of flavors available,
namely: Orange, Cloudy Lime, Clear Lime and Mango.
9
the war was beyond control for these two companies, management perhaps could’ve
done more to not only attempt to predict the backlash from Indian consumers due to the
war, but also could’ve created advertisement campaigns to address the situation.
While political and legal factors produced problems for Coca-Cola and Pepsi, both
Coca-Cola and Pepsi did a lot of things to prevent that situation from happening. Both
companies heavily participated in the cultural festival of Navratri in western India to
promote their products and create brand awareness in a culturally traditional setting.
The companies also produced television and print advertisements that linked important
Indian themes to their products by “building a connect using the relevant local idioms”
Coca-Cola and Pepsi both utilized popular Indian sporting events, athletes, and
celebrities to endorse their products. Both companies could’ve made the mistake of
using American celebrities or already made American commercials to advertise their
products in India, but instead made the right move by making advertisements to
specifically target their foreign market.
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1.9 COCACOLA IN INDIA
Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than
reveals its formula to the government and reduces its equity stake as required under the
Foreign Exchange Regulation Act (FERA) which governed the operations of foreign
companies in India. After a 16-year absence, Coca-Cola returned to India in 1993,
cementing its presence with a deal that gave Coca-Cola ownership of the nation's top
soft-drink brands and bottling network. Coke’s acquisition of local popular Indian
brands including Thums Up (the most trusted brand in India21), Limca, Maaza, Citra
and Gold Spot provided not only physical manufacturing, bottling, and distribution
assets but also strong consumer preference. This combination of local and global brands
enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes
while also tapping into traditional domestic markets. Leading Indian brands joined the
Company's international family of brands, including Coca- Cola, diet Coke, Sprite and
Fanta, plus the Schweppes product range. In 2000, the company launched the Kinley
water brand and in 2001, Shock energy drink and the powdered concentrate Sun fill hit
the market.
From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one
of the country’s top international investors.22 by 2003, Coca-Cola India had won the
prestigious Woodruf Cup from among 22 divisions of the Company based on three
broad parameters of volume, profitability, and quality. Coca-Cola India achieved 39%
volume growth in 2002 while the industry grew 23% nationally and the Company
reached breakeven Profitability in the region for the first time.23 Encouraged by its
2002 performance, Coca-Cola India announced plans to double its capacity at an
investment of $125 million (Rs. 750 crore) between September 2002 and March
2003.24 Coca-Cola India produced its beverages with 7,000 local employees at its
twenty-seven wholly-owned bottling operations supplemented by seventeen franchisee-
owned bottling operations and a network of twenty-nine contract-packers to
manufacture a range of products for the company. The complete manufacturing process
had a documented quality control and assurance program including over 400 tests
11
performed throughout the process. The complexity of the consumer soft drink market
demanded a distribution process to support 700,000 retail outlets serviced by a fleet that
includes 10-ton trucks, open-bay three wheelers, and trademarked tricycles and
pushcarts that were used to navigate the narrow alleyways of the cities.25 In addition to
its own employees, Coke indirectly created employment for another 125,000 Indians
through its procurement, supply, and distribution networks.
CHAPTER 2
12
2. COMPANY PROFILE
2.1 INTRODUCTION OF THE COCA COLA COMPANY
Coca-Cola touches the lives of millions of people each and everyday from special
occasion to exceptional moments in everyday life, Coca-Cola is there. The brand has
become very special part of people’s life.
There is much in our world to celebrate, refresh, strengthen and protect. The Coca-Cola
Company is a vibrant network of people, in over 200 countries, putting citizenship into
action. Through their actions as local citizens, they strive everyday to refresh the
marketplace, protect the environment and strengthen over communities.
World of coca cola encompasses the rich history and process of the refreshing beverage
that was created here in ATLANTA over 110 years ago. While coca cola was first
served at a small pharmacy soda foundation near underground Atlanta, soft drink is now
being purchased in over 200 countries across the globe. In fact, it is now severed nearly
1 billion times a day. You might say that when the world wants refreshment the world
turns to Coca-Cola.
World of Coca-Cola capture all the excitement of this world famous product, not only
through its exhibits, but also through its unique architecture style. Visitors pass under an
enormous three-dimensional Coca-Cola globe suspended 18 feet over the entrance, then
step in to a three story sky lit atrium from there visitors move at their own pace through
an easy to follow series of fun and fascinating exhibit galleries.
13
At the late 1930s Barnes soda jerk will demonstrate how an early Coca-Cola was
prepared. Move ahead into the International Video Lounge and the “Taste of the world”
an international sampler of cold soft drinks distributed by the Coca-Cola company but
not available in U.S.
We're proud to say that we market four of the top-five soft drinks in the world and rank
No. 1 in sales of carbonated soft drinks globally. Did you know that globally we also
rank No. 1 in juice and juice drinks, No. 2 in sports drinks and No. 3 in bottled water?
In the past two years, we have expanded our portfolio of beverages that provide
vitamins, nutrients and other beneficial ingredients. We now have more than 400 brands
that include nearly 2,400 beverage products.
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We believe in preserving and protecting water resources.
Protecting and improving access to and the availability of water remains one of our
long-term goals. We partner with many organizations, governments and local
communities to develop and implement sustainable water initiatives around the world.
The Coca-Cola system (the Company and our bottling partners) has a comprehensive
HIV/AIDS health care program in Africa, covering nearly 60,000 employees, their
spouses and their children. We have also reached millions of people in Africa through
our HIV/AIDS community awareness programs
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We are a part of local businesses around the world.
The Coca-Cola system's customers are the grocers, retailers, street vendors and store
owners who sell our products to our consumers. We have millions of these partners in
the more than 200 countries where we operate.
Approximately 50 billion times a day, someone drinks a beverage. Our beverages are
enjoyed more than 1.3 billion of those times. That means there are over 48 billion
beverage choices to capture.
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2.3 HISTORY OF THE COMPANY
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from
Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged
brass kettle in his backyard. The name was a suggestion given by John Pemberton's
bookkeeper Frank Robinson.
The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John
Pemberton, originally as a coca wine called Pemberton’s French Wine Cola in 1885.He
may have been inspired by the formidable success of Vin Mariani, a European coca
wine.
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In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French
Wine Cola. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8,
1886. It was initially sold as a patent medicine for five cents a glass at soda fountains,
which were popular in the United States at the time due to the belief that carbonated
water was good for the health. Pemberton claimed Coca-Cola cured many diseases,
including morphine addiction, dyspepsia, neurasthenia, headache, and impotence.
Pemberton ran the first advertisement for the beverage on May 29 of the same year in
the Atlanta journal.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other
two manufacturers could continue to use the formula. So, in the summer of 1888,
Candler sold his beverage under the names Yum Yum and Koke. After both failed to
catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to
force his two competitors out of the business. Candler purchased exclusive rights to the
formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in
1914, Dozier came forward to claim her signature on the bill of sale had been forged,
and subsequent analysis has indicated John Pemberton's signature was most likely a
forgery as well.
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Old German Coca-Cola bottle opener
In 1892 Candler incorporated a second company, The Coca-Cola Company (the current
corporation), and in 1910 Candler had the earliest records of the company burned,
further obscuring its legal origins. By the time of its 50th anniversary, the drink had
reached the status of a national icon for the USA. In 1935, it was certified kosher by
Rabbi Tobia Geffen, after the company made minor changes in the sourcing of some
ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor
wall advertisement was painted in the same year as well in Cartersville, Georgia. Cans
of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg,
Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A.
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Biedenharn. The original bottles were Biedenharn bottles, very different from the much
later hobble-skirt design that is now so familiar. Asa Candler was tentative about
bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F.
Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that
Candler signed a contract giving them control of the procedure for only one dollar.
Candler never collected his dollar, but in 1899 Chattanooga became the site of the first
Coca-Cola bottling company. The loosely termed contract proved to be problematic for
the company for decades to come. Legal matters were not helped by the decision of the
bottlers to subcontract to other companies, effectively becoming parent bottlers.
quantities, as an over-the-counter remedy for nausea or mildly upset stomach.
The soft drink was first sold at the public soda fountain in Jacob’s Pharmacy in Atlanta
on May 8, 1886.
About nine servings of the soft drink were sold each day. Sales for that first year added
up to a total of about $50. The finny thing was that it cost John Pemberton over $70 in
expenses, so the first year of sales were a loss.
Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as
the caffeine rich kola nut.
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aggressive marketing of the product. With Asa Candler, now at the helm, the Coca Cola
Company increased syrup sales by over 4000% between 1890 and 1900.
Advertising was an important factor in John Pemberton and Asa Candler’s success and
by the turn of the century, the drink was sold across the United States and Canada.
Around the same time, the company began selling syrup to independent bottling
companies licensed to sell the drink. Even today, the US soft drink industry is organized
on this principle.
Until the 1960s, both small town and big city dwellers enjoyed
carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the
drug store, the soda fountain counter served as a meeting place for people of all ages.
Often combined with lunch counters, the soda fountain declined in popularity as
commercial ice cream, bottled soft drinks, and fast food restaurants became popular.
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longer in production, eliminating the need to differentiate between the two. The formula
remained unchanged.
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2.5 POSITION IN THE LIFE CYCLE
Coca-Cola is currently going through the maturity stage. This maturity stage lasts
longer than all other stages. Management has to pay special attention to products during
this stage of the product life-cycle.
Since its beginning in the spring of 1886 Coca-Cola has become the most popular and
biggest-selling soft drink in history, as well as the best-known product in the world.
Created in Atlanta, Georgia by Dr. John S. Pemberton, Coca-Cola was first offered as a
fountain beverage by mixing Coca-Cola syrup with carbonated water. The Coca-Cola
Company is the world's leading manufacturer, marketer, and distributor of non-
alcoholic beverages in the world. The Company and its subsidiaries employ nearly
31,000 people around the world. Its headquarters is in Atlanta, Georgia. During the
maturity stage, products usually go through a slowdown in sales growth. According to
Coca-Cola's 2001 annual report, sales have increased by 1.02% compared to last year.
This percentage has no comparison to the high level of growth Coca-Cola enjoyed
during its growth stage.
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BUSINESS CHAIN OF COCA-COLA INDIA
Manufactures
Coca-Cola India Concentrate,
division, Gurgaon Beverage base and
Syrup
Manufactures
Regional Bottlers finished Bottles/
COBO/FOBO Cans/ Fountain
Syrup
Customers
Consumers
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Brand Name: Coca-Cola
Drink Type: Soft Drink
26
Type Cola
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1977
Related products Coca-Cola, Pepsi, Campa Cola
27
Available in the following flavor: Lemon Lime.
Available in the following locations: India, Nigeria, United Arab Emirates and
Zambia.
28
Fanta: Available in Europe since the 1940s, Fanta was introduced in the United
States in 1960. Consumers around the world, particularly teens, fondly associate Fanta
with happiness and special times with friends and family. This positive imagery is
driven by the brand's fun, playful personality, which goes hand in hand with its bright
color, bold fruit taste and tingly carbonation.
Beginning in 2009, the U.S. markets will see Fanta Regular Orange, Fanta Zero Orange,
Fanta Apple and Fanta Grapefruit in 100% natural flavors.
Maaza: With the real fruit taste kids love, plus added calcium, Maaza's tagline,
29
"Yaari-Dosti Taaza Maaza," means "friendship moments with fresh Maaza" in
Hindi.
Kinley: Kinley is high quality bottled water processed with added minerals
popular among adults who seek a better quality of life and a healthy lifestyle.
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Brand Name: Minute Maid Pulpy orange
Drink Type: juice
Minute Maid Pulpy Orange: 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 is sold under Cappy brand in Central Europe and under
Fruitopia in Germany
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2.6 COMPETETIVE AREA
Competitive area among Coke & Pepsi
Coca-Cola India Pvt Ltd maintained its leading position in soft drinks in India, followed
by PepsiCo India Holdings Pvt Ltd in 2006. Whilst the retail volume shares of Coca-
Cola India and PepsiCo India slipped in 2006, as a result of the growing health concerns
caused by the aftermath of the pesticides controversy, both maintained a comfortable
lead over the other manufacturers. Parle, Bisleri Ltd has steadily gained shares from the
carbonates giants over the review period, to emerge as the third ranked company in
2006. The battleground for beverages has moved from carbonates to bottled water and
fruit/vegetable juice, with manufacturers turning their attention towards these healthier
beverages, as consumer interest continues to surge forward. A number of new players
have entered fruit/vegetable juice and bottled water, vying for a slice of the growing pie.
While cricket had always been the most popular sport in India, with new
technology coming into cricket from coverage to sports gear to day/night versions of the
game, it was set to acquire the status of a religion in the sub-continent. Pepsi picked up
the opportunity early on by not only contracting the rights to all Tests and One Day
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Internationals (ODIs) played in India, but also signing up top performers early such as
Sachin Tendulkar and Rahul Dravid and creating some very cutting edge and
memorable advertising campaigns with them.
The distribution network of Coca cola had 6.5 lakh outlets across the country, which the
company is planning to increase to 8 lakhs. On the other hand Pepsi Co's distribution
network had 6 lakh outlets across the country which it is planning to increase to 7.5
Lakh.
2.6.1 ADVERTISING
Advertising is a non promotion of goods & services by sponsor who can identify and
who has paid for his communication. Their purpose of advertisement is to sell
something goods or services, idea, person or place.
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COLA WAR (neck to neck)
Bollywood rising stars Asin (left) for Pepsico’s Mirinda, Genelia D’souza (Right) for
coca cola’s Fanta
34
Tennis star Sania Mirza for Sprite
35
Bollywood star Akshay kumar for Thums up
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Limca “fresh ho jao” TV add
37
Bollywood superstar Shahrukh Khan new Brand Ambassador of Sprite
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Sprite “kholega toh bolega” IPL Season 2
Riding on the passion of T20 cricket amongst consumers, Brand Sprite, Official Pouring
Partner of Kolkata Knight Riders (KKR) had announced the launch of a Special edition
‘Sprite Kolkata Knight Riders’ bottle. The latest initiative was a part of brand Sprite’s
larger consumer engagement program to leverage the second season of DLF IPL, 2009.
Independent research reports have shown, out of the 230 million mobile phone users in
the country, the youth continues to be the largest users of mobile phones. Combining
this key insight with the passion of T20 cricket, company had launched a special edition
‘Sprite Kolkata Knight Riders’ bottle with insignia of key players.
Complimenting the innovation, Sprite was also rolling out a special ‘Kholega Toh
Milega’ digital initiative in association with KKR and Nokia.
In the offer consumers just need to drink Sprite and look out for a unique 9 digit code
under the crown and SMS the code. Lucky consumers get once-in-a-lifetime
opportunity to meet Shahrukh Khan and members of the KKR team. In addition,
consumers also get a chance to win a Nokia mobile phone every hour. The entire
initiative was applicable RGB and also on all PET packs of Sprite.
To create awareness about ‘Kholega Toh Milega’ digital initiative, the company had
launched a mass media campaign featuring Shahrukh Khan, owner KKR, to be telecast
on all the leading TV channels across India.
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2.6.2 PROMOTION DURING OFF SEASON
Coca-Cola India has announced the launch of its innovative ‘Limca ‘Laptop Ki Barish’
consumer initiative nationally. As part of this unique initiative a computer generated
lucky draw would provide consumers a chance to win “HP Mini Laptop” every hour for
the next 45 days. The initiative is applicable to 200ml, 300ml returnable glass bottles
(RGB) and also on 500 ml, 600 ml 1.25, 1.5, 2 & 2.25 liters PET bottles of Limca. As
part of the under the crown initiative consumers just need to SMS “LIMCA” followed
by a 9 digit unique code to 58558 from their GSM / CDMA mobile phones.
The national initiative is designed to leverage the popularity of digital media like
mobile phones (Both GSM & CDMA & IVRS), internet and laptops amongst soft drink
consumers and would run from 1st August to 14th September, 2009
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2.6.3 COMPARISON OF PRODUTS OF COCA-COLA WITH THAT OF PEPSI
41
42
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2.7 ORGANISATION STRUCTURE IN COCA COLA, INDIA
Vice President
Supply Chain
Chief Finance
Officer
HR director
CHIEF
EXECUTIVE
OFFICER
Vice President
BSG
Regional Vice
President (north)
Regional Vice
President (central)
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2.7.1 SALES DEPARTMENT
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AWARDS & RECOGNITION
Corporate Social Responsibility Awards, Coca-Cola India (May 2009).
Most Socially Responsible Company 2008, Coca-Cola Nigeria Limited, Social
Enterprise Reports and Award (SERA) 2008, (August 2008)
Foods and Beverages Most Socially Responsible Company in Nigeria 2008,
Coca-Cola Nigeria Limited, Social Enterprise Reports and Award (SERA) 2008,
(August 2008)
One of Ten "Most-Admired" Companies in Germany, The Coca-Cola Company,
Manager Magazin (February 2008)
Philanthropist of the Year, Coca-Cola Ukraine, World of Child, Ukrainian Fund
of Philanthropists and Ukraine 3000 (December 2007)
Named Strategic Partners in Poland's Responsible Business Forum, Coca-Cola
Poland Services (CCPS) and Coca-Cola HBC Polska (CCHBCP), Responsible
Business Forum (FOB) (December 2007)
No. 2, 2007 Corporate Social Responsibility Study, Coca-Cola Mexico,
Excélsior (December 2007)
World's Most Accountable Corporations, One World Trust 2007 Global
Accountability Report (December 2007)
Asia Society Leadership Award (November 2007)
No. 2, India's Most Respected Fast Moving Consumer Goods Company, and No.
7, Most Respected Multinational Corporation in India, Coca-Cola India,
BusinessWorld, in conjunction with the Indian Market Research Bureau
(November 2007)
No. 13, World's Most Respected Companies survey, Barron's (September 2007)
No. 1, Food and Beverage Industry Category, Best Ethical Quote Progress and
Best Reported Performance Categories (July 2007)
No. 2, Leaders Across All Sectors for Best Reported Performance, Ethical Quote
(July 2007)
FTSE4Good Index of Socially Responsible Companies (July 2007).
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2.9 WAVE BEVERAGES PRIVATE LIMITED (WBPL)
(Franchise of coca cola at Amritsar)
2.9.1 INTRODUCTION
The company was established by late S. Teja Singh Kandhari and his son S. Abhinash
Singh Kandhari, in 1969 under the name of Amritsar Bottling Company as a Franchise
of Parle (Export Pvt. Ltd.)
In 1997, this name was changed to Amritsar Beverage Ltd. Initially only two flavors
were introduced, Gold Spot and Kismat. Limca was introduced in 1972 and Cola
flavored Thums Up in 1978 due to the exit of Coca-Cola in 1973. With the re-entry of
Coca-Cola, this company added Coca-Cola in the product range so Coca-Cola joined
hands with Parle. Coca-Cola is the most selling brand in Amritsar among the categories
of soft drinks. In 2005, Wave Beverages Pvt.Ltd. (WBPL) was formed to carry on the
business. It became a part of the Chadda Group of Industries. The company has two
manufacturing units ACCP1 and ACCP2. ACCP1 manufactures in RGB and has a
capacity of 220bpm. ACCP2 manufactures CSD with the capacity of 600bpm. In the
year 2007 the company added 120bpm PET manufacturing unit keeping in view the
changing trend of consumption. It manufactures 2ltr and 600ml bottles. Since 2005
WBPL has accomplished so many targets and has become one of the most respected
franchisee of Coca-Cola. It has won many accolades for parent company year after year.
47
48
2.9.2 DISTRIBUTION PROCESS
WBPL has a very wide and well managed distribution system in which
salesmen have a full responsibility to distribute the product to different and diverse part
of the Amritsar City. The distribution system is well structured in such a way that it will
fulfill the demands of retailers and customer at the right time and at the right place.
The typical distribution system of WBPL is:
PRODUCTION
PLANT
WARE HOUSE CUSTOMER
DEPOT
WARE HOUSE
RETAIL
SHELF
RETAIL
STOCK 49
2.9.3 SUPPLY CHAIN OF THE COMPANY
Manufacturing Plant,
JANDIALA
Sales and
Distribution
Operations
Distributors Outlets
Outlets
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CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION
1. STRENGTHS:-
• DISTRIBUTION NETWORK: The Company has a strong distribution
network consisting of a number of efficient salesmen, 700,000 retail outlets and
8000 distributors. The distribution fleet includes different modes of distribution,
from 10-tonne trucks to open-bay three wheelers that can navigate through
narrow alleyways of Indian cities and trademarked tricycles.
• STRONG BRANDS: The Coca-Cola has been named the world's top brand for
a fourth consecutive year in a survey by consultancy Interbrand. It was
estimated that the Coca-Cola brand was worth $70.45billion. People all over the
world enjoy coca cola products more than 1.3 billion times per day.
• COST OF OPERATIONS: The production, marketing and distribution systems
are very efficient due to forward planning and maintenance of consistency of
operations, which minimizes wastage of both time and resources, leads to
lowering of costs.
2: WEAKNESSES:
51
• LOW EXPORT LEVELS: The brands produced by the company are brands
produced world wide thereby making the export levels very low. In India, there
exists a major controversy concerning pesticides and other harmful chemicals in
bottled products including Coca-Cola .Therefore, people abroad, are
apprehensive about Coca-Cola products from India.
• SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO
INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company’s
operations are carried out on a small scale and due to Government restrictions
and ‘red-tapism’, the Company finds it very difficult to invest in technological
advancements and achieve economies of scale.
3: OPPORTUNITIES:
• LARGE DOMESTIC MARKETS: Coca-Cola India claims a 60.1 per cent
share of the soft drinks market; this includes a 42 per cent share of the cola
market. Other products account for 18.1 per cent market share, chiefly led by
Limca.
• EXPORT POTENTIAL: The Company can come up with new products,
which are not manufactured abroad, like Maaza etc and export them to foreign
nations. It can come up with strategies to eliminate apprehension from the minds
of the people towards the Coke products produced in India.
• HIGHER INCOME AMONG PEOPLE: Development of India as a whole
has lead to an increase in the per capita income thereby causing an increase in
disposable income. The beverage industry can take advantage of such a situation
and enhance their sales.
4: THREATS:
• IMPORTS: As India is developing at a fast pace, the per capita income has
increased over the years .If consumers shift onto imported beverages rather than
52
have beverages manufactured within the country, it could pose a threat to the
Indian beverage industry as a whole in turn affecting the sales of the Company.
• TAX AND REGULATORY SECTOR: The tax system in India is
accompanied by a variety of regulations at each stage on the consequence from
production to consumption. Therefore, this can limit the growth of the Company
and pose problems.
• SLOWDOWN IN RURAL DEMAND: Low per capita disposable income,
large number of daily wage earners, poor roads; power problems; and
inaccessibility to conventional advertising media. All these problems might lead
to a slowdown in the demand for the company’s products.
• CHANGING OF CONSUMERS PREFERENCE: The Company should keep
an eye on the changing preferences of the consumers.
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CHAPTER 3
3. PROJECT PROFILE
3.1 INTRODUCTION OF RED (RIGHT EXECUTION DAILY)
RED (RIGHT EXECUTION DAILY) is a tool to measure sales team and distributors’
performance in the outlets with respect to all parameters of execution.
Red lays down standards of visicooler, brand norms, and in-outlet activation
elements.
It lays down specific norms and elements for enhanced in-outlet Brand
execution.
It allows for development of short, mid and long term execution strategies,
tactics and action plans.
It tracks brands and brand pack penetration in outlets.
Due to the audit characteristic of RED, each brand can be measured against its
specific execution goals, and can be precisely monitored.
COOLER
SPECIFICATION
54
ACTIVATION AVAILABILITY
3.2 RED CONCEPT (RIGHT EXECUTION DAILY)
ELEMENTS BRAND PACKS &
ORDER
RED CONCEPT
RED is the tool to measure the performance of the distributors in the outlets of setting
up some standards or parameters of execution. It adds value to customers and
consumers through Excellence in Execution at the point of sale.
The main function of RED is “what can be done” in an outlet and what
all should be done. It lays down standard for visicoolers, brand norms and activation
element. RED is the set of norms divided into outlet wise.
1. Firstly, I have to check the cooler management i.e. the cooler that was
provided by the company to the customer, are properly
managed/working or not. And lastly the most important aspect of cooler
management are:
. Purity
. Brand order
2. Secondly, I have to check the availability of the product i.e. whether the
product is available to the customer or not.
3. Lastly, I have to check the activation, which is a very important because
activation helps to boost the sales. Activation is done through boards i.e.
glow signs flengs, combo, boards, OBM. Mostly combo boards are given
55
to the E&D outlets. And is very helpful in attracting the customers. Rack
with header is provided to the Grocery outlet, which should be fully
charged.
Survey has done in the four topics-
Impurity
Brand Order
Availability
Activation
3.2.1 IMPURITY
There should be no impurity in the visi cooler of the company. Impurity here refers to
that brand which is presented in the visi cooler other than coke’s product. Therefore not
other product of any other company may not be in the cooler.
3.2.3 AVAILABILTY
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Availability is done according the type of outlet. There are four type of outlet
mentioned below. According to this market developer has to ensure the availability of
the products in the particular outlet.
3.2.4 ACTIVATION
Activation is important because it helps to boost the sales of the company. it is done
through the Glow sign, DPS, flanges. Combo boards, Table tops .This boards usually
gives to the E&D outlets .It helps to attract the customers. Rack with header is provided
to the grocery stores.
Activation Elements
Market developer must ensure that all these activation elements must available at all the
outlets. Detail of activation elements must available at GROCERY STORES:
1. WARM DISPLAY RACK
2. SHELF DISPLAY
SHELF DISPLAY
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DISPLAY OF RACK VISI COOLER
3.3 BRAND NORMS AS PER STANDARD
COLOJK
Most Selling Cola, 2nd Cola, Most Selling Lime, 2nd Lime, Most Selling Orange,
Most Selling Juice, 2nd Juice, Kinley.
In simple way it can be described as:
58
3.3.1 BRANDS TAGLINE
59
Fanta -Genelia D’souza
Limca -Riya Sen
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CHAPTER 4
61
4.1.2.2 SECONDARY DATA COLLECTION:
4.2.1 UNIVERSE:
The universe of research is the outlets under the RED project of India.
4.2.2 POPULATION:
4.3 LIMITATIONS
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Although all efforts have been taken to make the results of survey as accurate as
possible but the survey suffers from the following limitations:
1) The time period of study was only for two month so it was not possible to
cover all the areas and go into the depth of the problem and make analysis.
2) The area of survey was Amritsar and it was concentrated on urban area only.
4) The training was carried on in the peak season so market developer was not
so supportive.
CHAPTER 3
REVIEW OF LITERATURE
Philadelphia (1995)
The plaintiff is John Bibby. The defendants are the Philadelphia Coca Cola Bottling
Company (TPCCBC) and nine individual officers or employees of the TPCCBC.
Founded in 1902, TPCCBC is considered the United States' third-largest black-owned
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corporation. TPCCBC is the sixth largest Coca-Cola bottling company in the United
States.
Ramanvenkatamani (2009)
This review not only for Coca Cola, but for other carbonated drinks like PEPSI too.
These drinks contain Carbonic ACID (Carbon di-oxide and water) which slowly
destroys our inner system .he said that Coca Cola-A Coal (Carbon, Carbonic ACID)
Hermit (2008)
In that study it is said to coca-cola a slow poison. History of Coke - 123 years back,
John Pemberton was working on a coca wine (an alcoholic beverage consisting of coca
and wine). His solution was a mix of coca, cola nuts and damina - and the beverage is
not good for human being.Coke is probably the unhealthiest fizzy drink on the market
and that is why I very rarely drink it. Though don't start drinking gallons of Sprite
instead as all fizzy drinks are unhealthy and should not be drunk often.
Golffer (2007)
Coke the really thing love it really cold and fizzy no pepse, it is easy to find some do
drink too much brush your teeth after drinking it though not good for teeth. great on a
hot summers day and for parties. Coca-Cola has been brilliantly marketed over the years
and it's created a good image of itself. Coke has created a cool and sleek image of its
drink over the years. Coke also has a "happy family" image. The adverts always show
happy, laughing friends drinking a Coke, or a cozy image of the whole family enjoying
a glass of Coke each.
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(store coverage) across vertical (flavors, packaging, diet attributes) segments of the
market. Regularity of the firm size distribution is not disturbed by the nature of short-
run brand competition (turbulence in brand market share) within segments. Remarkably,
product differentiation resulting from firms acquiring various portfolios of product
attributes and stores in market evolution determines the limiting firm size distribution.
No other country has as high of a soft drink consumption rate as the U.S.; however,
many international areas have been targeted as potential areas for expansion. The
strategy of overseas expansion involves similar use of the differentiation and
consolidation methods that are used in the U.S., but are often geared toward specific
foreign populations, e.g. PepsiCo's introduction of a unique Guava-Flavored Slice in
India. Selling soft drinks internationally is advantageous to soft beverage companies
because they are able to sell their products overseas at a lower price since local bottling
companies produce the drinks. The major competitors, therefore, are essentially
responsible for selling brand names and the image that goes with them.
65
The soft drink industry is yet to find its niche market in India. Despite strong marketing
efforts, the penetration level of soft drinks industry in India is still below par, even
when compared to its neighboring countries, like Pakistan, Thailand, Sri Lanka, let
alone the US or the UK. The present state of economic growth in the sub-continent
makes it a lucrative destination for the consumer goods sector, including the major
players in the soft drink industry. The factors that are instrumental in making India a
lucrative destination include an emerging economy with continuously increasing (i)
gross domestic product; (ii) annual disposable income; (iii) population; and (iv) literacy
rate (ensuring more education, more job opportunity and more purchasing power). All
these factors offer a great prospect for any company to flourish. This paper explores the
feasibility of selling soft drinks through the channel of educational institutions by
examining one of Kolkata’s most densely populated areas. This study has revealed that
the popularity and consumption of soft drinks among the younger generation (age group
16-24 years) in India is way higher than the overall average soft drink consumption
among Indians. Although the ill effect of soft drinks on health is widely known, yet it is
seen that the young Indian (age group 16-24 years) is not shying away from it. The
paper studies the preference and habits of students. It also tries to analyze the
preferences and willingness of the educational institutes (higher secondary and
onwards) to sell soft drinks. The paper concludes that in India, there is a huge potential
for this industry to flourish through the channel of educational institutions.
66
market share of 19.9%, Pepsi-Cola, with 13.2%, followed by Diet Coke with 8.8% and
Mountain Dew (a PepsiCo product) with 6.9%.
CHAPTER 5
5.1 ASSIGNMENT – 1
On the day of joining WBPL on June 7, 2010; a basic idea about RED ( Right
Execution Daily) was given just to understand the market on the surface such as RED is
basically a tool of the company to measure the performance of the outlets and keep a
check on them according to certain norms. The proper execution of program helps the
company in maintaining the market share and increasing the sales volume. Its proper
execution is assessed by AC Nielson who does a regular monthly survey in order to
bring to light the systematic working of WBPL. RED lays down norms for:
a. Visi-Cooler
67
b. Availability
c. Activation
Visi-Cooler
The visi-cooler should contain products related to Coke only. If there is anything wrong
which is not manufactured by Coca-Cola then the visi-cooler is considered as impure
and it’s the duty of the MD and the outlet owner to make it pure. The products in the
visi-cooler should be arranged in the particular order. The order is known as COLOJK.
CO- Cola products which includes Coca-Cola and Thums Up.
L – Lemon products which includes Limca and Sprite.
O- Orange products which includes Fanta.
J- Juices that includes Maaza and MMPO.
K- It includes Kinley water and soda.
The visi-cooler has to be in the working condition with the light always kept on.
Activation
The activation elements make the outlet look attractive and make people aware about
the products and hence increase the sale. These elements include Flange, Table Top,
Racks, and Shelf Display etc.
5.2 MARKET SEGMENTATION
The company has divided their outlets on the basis of the following criteria-
Volume
Channel
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BRONZE - <200 crates
Grocery (customer profile): Store stocking a variety of regular uses household items.
The channels provide an opportunity for penetration as it propels home consumption.
It includes all kirana stores, juice stall, cold drink stall, departmental stores,
supermarkets, provision stores etc.
Necessary Availability - 2 liter and 300ml
Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller
dhabas. These outlets offer multiple
Opportunity to effect sales as people usually order something to drink along with food.
It includes
- Restaurants
- Bars and Pubs
- Dhabas
- Sweet shop
- Quick service restaurants
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Pan/bidi shops (customer profile): This segment includes PAN BIDDI outlets that stock
cigarettes, mint, and confectionary. It covers STD/ISD phone booths, travel channel etc.
Small outlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml.
70
Under his guidance, another remarkable thing that happened was
the experience to work in an atmosphere where high society customers are come. Here
we experience the different type of attitude and working of the market.
With his help, I was able to add more knowledge about RED
execution. While visiting these outlets the main problem is about purity because of the
city side area
Total 20 20 20 20 20 20 20 20 20 20 20 20
5.3 ASSIGNMENT – 2
After the one week of observation period, I was assigned the task to cover the routes of
6 ASMs (Area Sales Manager). Each ASM had around 3 MD’s with whom I covered
the market of EATING & DRINKING CHANNEL 2 viz.
Mr. S. S. Bedi
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CHAPTER 6
6.1 DATA ANALYSIS & INTERPRETATION
Data analysis is based upon the survey that I had conducted during my training time
through visiting each and every outlet. In this analysis different things that I observe
about the overall east market of the Amritsar is firstly shown that the market share,
leading brand, size of visicooler in the market, different channels of coca cola Company
etc.
SIZE OF VISICOOLER
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8% 2% 1% 7%
20c/s
9c/s
7c/s
4c/s
82% 2c/s
Fig.1
LEADING BRAND OF COCACOLA
Brand share
8%
7%
THUMSUP
6%
COKE
SPRITE
14% LIMCA
63%
2% FANTA
MAAZA
Fig.2
CHANNEL OF COKE
74
5%
29%
E&D
CONVENIENCE
66% GROCERY
Fig.3
CLASS OUTLET
19
DIAMOND
92
83 GOLD
SILVER
BRONZE
56
Fig. 4
MARKET SHARE
75
MARKET SHARE
29%
COKE
PEPSI
71%
Fig. 5
DIVISION OF MARKET
20% Fig. 6
COKE
PEPSI
50%
OTHERS
30%
It is just the over view of the market which clear from our survey, observation and
visiting in the market. So the main data analysis and interpretation will start from the
ASM MR. HARSHARAN SINGH.
6.1.1 THE DETAIL STUDY OF Mr. HARSHARAN SINGH’s ROUTE:
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On 16th July, I began conducting the survey of the market by covering
the route of Mr. Harsharan Singh with the MDs named ACHAL SHARMA, SATBIR
SINGH and RAVI SHARMA. They all have the different markets and routes like
Lawrence road; Ajnala road, Green avenue market, Ranjit Avenue and Rani Ka Bagh
having 53 E&D2 outlets which are fall under the RED.
number of visicooler
AS PER
STANDARD
PRIME POSITION
44 51 WORKING
CONDITION
31 LIGHT WORKING
100% PURE
52 BRAND ORDER
48
53
Fig. a
INTERPRETATION:
From above data it is simply clear that there almost the equal shares of all
the parameters of visicooler like out of 53 outlets most of the visicoolers are as per
standard, at prime position etc. but the main concern is about the purity. This is the
problem that I ever seen in many of the outlets and also the brand order.
AVAILIBILITY
47 49
CSD 300ml
MAZZA RGB
WATER
77
46
Fig. b
INTERPRETATION:
The above figure clearly shown that the availability is round about full and
it is satisfactory because it is not a big problem and it can be resolve on route riding.
NUMBER
COMBO/MENU
42 CARD/BOARD
49
FLENGE/GLOW SIGN
BOARD
OBM
PRICE COMMUNICATION
47
48
Fig. c
INTERPRETATION:
78
The figure clearly shown that the activation element is quit satisfactory
on the Harsharan’s route. So, there is no need for worrying but try to maintain and
increase that level.
On 21st July, I began conducting the survey of the market by covering the
route of Mr. S. S. Bedi with the MDs named AKASH and SANDEEP SURI. They all
have the different markets and routes like Golden Temple Market, Lohgarh Market
having only 8 E&D2 outlets which are fall under the RED.
number of visicooler
AS PER
STANDARD
PRIME
8 7 POSITION
WORKING
1 CONDITION
LIGHT
8 WORKING
8 100% PURE
8
BRAND
ORDER
Fig. d
INTERPRETATION:
The above figure shown that the other parameters are satisfactory but the
problem is about the purity. Here the purity problem is more because this market is
inside the city where outlet owners are not much aware about the convenience of the
customers and also the waiters are not much aware about it.
79
AVAILIBILTY LEVEL IN THE OUTLETS:
AVAILIBILTY
7
CSD 300ML
MAZZA RGB
8
Fig. e
INTERPRETATION:
From the above figure it is clear that the availability is full. There is no
need to worry about the availability factor.
ACTIVATION
COMBO/MENU
7 8 BOARD
FLENGE
OBM
PRICE
8 7 COMMUNICATION
Fig. f
INTERPRETATION:
80
From the figure it is clear that the activation element is quit satisfactory, but
the work has to be done to reach at the 100% level.
visicooler
30 47 As per standard
18
Prime position
Working condition
Light w orking
45 49 100% purity
Brand order
49
Fig. g
INTERPRTATION:
From the figure it is clear that all the parameters are quite satisfactory except
the purity and brand order. Their areas are more preferred area by the outsiders and also
by the insiders for eating and shopping. In spite of this there is a big problem of purity
this totally disposes the reputation of the company. So, the MDs have to work on that.
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AVAILIBILTY LEVEL IN THE OUTLETS:
AVAILIBILTY
7
CSD 300ML
MAZZA RGB
8
Fig. h
INTERPRETATION:
From the above figure it is clear that the availability is full. There is no need to worry
about the availability factor.
COMBO/MENU
7 8 BOARD
FLENGE
OBM
PRICE
8 7 COMMUNICATION
Fig. i
82
INTERPRETATION:
From the figure it is clear that the activation element is quit satisfactory, but
the work has to be done to for installing flenge, combos, and menu boards to reach at
the 100% level.
87.29
88 86.56
86
84
82
80 78.46
78
76
74
ACHAL SATBIR RAVI SHARMA
Fig. j
COMPARISION OF S. S. BEDI’S MARKET
%AGE
AKASH
86 86.5 SANDEEP
SURI
83
COMPARISON OF ASHWANI VAID’S MARKE
78
77.21
77
76
75
Jaspal
73.47 73.42 Ravi Kumar
74
Vikas
73
72
71
Jaspal Ravi Kumar Vikas
Fig. l
CHAPTER 7
8.1EXECUTIVE SUMMARY
Over the last few years hundreds of companies have greatly improved their performance
&the graph of growth through superior sales promotion services. Today many
companies are building on these foundations and are tuning their products in Soft drink
segment into a formidable competitive weapon. Sales Promotion services have become
a subject of huge interest in recent years.
Sales Promotion Services is growing because:
84
In the face of ever increasing competition in organizations feel it is important to
build reliable & sustainable processes with focus on strong relationships with
customers.
Significant revenue & profit gains can be made from successful Sales Promotion
Activities that improve efficiency & help serve customers better & faster.
Company believes that soft drink sell is not a planned sell it's a impulse buying,
and activation create impulse for buying
Sales Promotion Strategies are offering new & better ways of addressing industries
objectives.
Coca-Cola has developed a unique sales promotion strategy that offer a unique way to
increase the sales of the soft drink.
8.2 CONCLUSION
RED is a worldwide project of COCA COLA Company. This project is playing a very
important role for the company. With the help of this project, sale of the company has
been increased. Because in this project there is one market developer who has to ensure
that Visicooler must be on prime location, all brands must available, all brands must
displayed in brand order i.e. COLOJK. All the activation elements like warm display
85
rack, table top rack, standees etc must be available at all outlets come under RED. All
these elements help the company in increasing the sales because
“JO DIKHTA VO BIKTA HAI “
Definitely when sales increase then profits also
increases. With the help of this project company has increased its sale in Amritsar
region and also company can measure or check the performance of each retailers
working all over the world with COCA COLA COMPANY.
8.3 FINDINGS
76% outlet from the sample of 250 outlets which have sufficient activation
elements but remaining 24% outlets are not fully activated.
86
In our study it is revealed that 67% from the selected outlet follow the Brand
Order COLOJ-K, but remaining 37%are not following the brand order.
69% of visited outlet, visi cooler are pure i.e. in visi cooler only the product of
Coca cola are placed and 31% of outlets don’t keep visi cooler pure.
67% of visi cooler are at prime position where consumer can see our product
and choose as per there need.
83% outlets are convenience store, 11% are under the E&D and remain under
6% are glossary shop.
41% of outlets are having 7vc, 41% of the total outlets having 9vc, 4% outlets
have 11vc, and few outlets have 2vc and 20vc.
54% market cover under the silver categories where as remaining 23%, 22%,
91% outlets don’t have a sufficient number GOD that they can create stock pile
according to the visi coolers provided to them and 9% are those outlets which
have sufficient number of GOD.
8.4 SUGGESTIONS:
87
We must visit all RED outlets where the activation elements are missing and it
must be activated immediately.
We must visit all those outlets and arrange the product according to COLOJ-K
where are products are not placed in the visi cooler according to COLOJ-K.
All the MD needs to visit all the red outlets regularly to keep the visi cooler
pure.
Prime position of visi cooler enhances the visibility of the product which help
consumer to choose the product and some times it influences the customers to
switch over from similar product.
We should try the increase sell of outlets so that maximum outlets convert into
upgrade class.
We need to put effort to increase the required number of GOD as per the visi
cooler size that they can keep 3day stock to meet the demand.
88
8.5 RECOMMENDATION:
Sales promotion and advertising to be made more frequent for brand building.
Company should make plans for better performance to the sales man.
89
8.7 LEARNING EXPERIENCE
• The first thing that I come to know is to work in the market i.e. the way of doing
the things in the market.
• The second thing is that, to know about the RED execution. And also learn the
impact of visicooler and activation on the sales.
• I also come to know the working of the Coca Cola Company i.e. how the
company do their jobs successfully.
• I can also do some practical work at the outlets like to set the brand order in the
visicooler, complete the activation element etc.
• I can also learn the working of MDs and sales person in the market.
• Also the relationships of the company with the outlet owners and customer are
very good.
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8.8 REFERENCES
www.agriculture-industry-india.com/agricultural-commodities/soft-drinks.html
wiki.answer.com/q/what_are_product_life_cycle_of_coca_cola
en.wikipedia.org/wiki/coca-cola
www.coca-colaindia.com
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8.6 SCORE SHEET OF COCA COLA COMPANY
92
93
94