Penetration of Mango Drinks in Siliguri Market

A Project Report On

³PENETRATION OF MANGO DRINKS IN SILIGURI MARKET´
Undertaken at

HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED SILIGURI, WEST BENGAL
(Submitted In Partial Fulfilment of the Requirements for the Award of PGDM)

Submitted By

Sourav Paul
DCSMAT Business School, Kerala
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Penetration of Mango Drinks in Siliguri Market

Under the Corporate guidance of

Mr. Arindam Sikdar
Area Sales Manager, Coca-Cola, North Bengal & Sikkim

Under the faculty guidance of Mr. Umesh Nilakantan

DCSMAT BUSINESS SCHOOL DC COUNTY, PULLIKKANAM, VAGAMON IDUKKI, KERALA 685503

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CERTIFICATE

This is to certify that the project entitled _Penetration of Mango Drinks in Siliguri Market___ is the bona fide record of the work done by _Sourav Paul_, PGP_09048_, _3rd_trimester PGDM student of _2009-2011_ batch, submitted in partial fulfilment of the requirements for the award of Post Graduate Diploma in Management.

Faculty Guide: ________

Director: ____________

Date:

Place:

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ACKNOWLEDGEMENT
In my endeavour to learn management and industrial practices and apply my theoretical knowledge as stipulated by our curriculum, I would like to thank µHindustan Coca Cola Beverages Pvt Ltd¶ for providing me an opportunity to work with their department of sales and marketing, Siliguri- West Bengal. I hereby take this opportunity to thank my project guide, Mr. Arindam Sikdar, Area Sales Manager, HCCBPL, Siliguri, who was always there to provide me with necessary inputs and keeping me motivated during the project. Without his experience about the market and the people whom I was introduced by him, this project would not have been possible. I also extend my gratitude to Mr. P.S Gupta, STL (Sales Team Leader), HCCBPL, Siliguri, who was always there to analyze the project progress and to give valuable inputs for the procedure and in helping me to collect data. I would like to thank the entire Siliguri team of HCCBPL for their co-operation and for giving me a platform to hone my skills. Special mention needs to be made here of Mr. Subhasish Dey and all MD¶s (Market Developers) of HCCBPL, Siliguri unit. I also extend my special gratitude to Mr. Umesh Nilakantan, faculty of DCSMAT Business School, Kerala for giving me suggestions & encourage me to do this project. I thank all my friends and my family members for contributing towards the completion of this project. A special thanks to Mr. Bimal Sikdar & Mrs. Sikdar for giving me an opportunity to do this project.

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CONTENTS
ExecutiveSummary..........................................................................................................................8 Introductions................................................................................................................................9 Industry Overview.......................................................................................................................10 Key Success Factors............................................................................................................11 Variant Available.................................................................................................................12 Overall Carbonated Soft Drink............................................................................................13 Product Coverage.................................................................................................................13 Market Trends & Industry Challenges.................................................................................13 Bottled Water Market..........................................................................................................15 Growth Promotional Activities...........................................................................................16 Retailer¶s Power Continuously Increasing..........................................................................16 Competition Becomes More and Difficult..........................................................................17 Trends and Opportunities in Soft Drink Industry...............................................................19 Porter¶s Five Force Analysis...............................................................................................20 Beverage Industry in India..........................................................................................................24 The Soft drink Industry........................................................................................................26 Company Overview.....................................................................................................................28 The Coca Cola Company......................................................................................................29 International Expansion........................................................................................................29 The World¶s Most Powerful Brand......................................................................................30 Patents, Copyrights, Trade Secrets & Trademarks...............................................................31 Employees............................................................................................................................31 Core Capabilities..................................................................................................................32 The Coca Cola System.........................................................................................................34 Mission of Coca Cola...........................................................................................................34 Vision of Coca Cola.............................................................................................................35 Vision 2020..........................................................................................................................37 DCSMAT Business School Page 5

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Value....................................................................................................................................37 Hindustan Coca Cola Beverages Private Limited.......................................................................38 Coke in India.....................................................................................................................38 Marketing Strategy............................................................................................................39 Brand Localization Strategy..............................................................................................40 Rural Success.....................................................................................................................41 HCCBPL Structure............................................................................................................41 COBO..........................................................................................................................41 FOBO...........................................................................................................................42 Production Process.............................................................................................................43 Organizational Chart of HCCBPL.....................................................................................44 Organizational Structure....................................................................................................45 Sales Department Structure...............................................................................................47 Product Mix of Coca Cola..................................................................................................48 Competition to HCCBPL..................................................................................................50 Marketing Mix...................................................................................................................52 Corporate Social Responsibility........................................................................................55 Market Segmentation of Coca Cola...................................................................................56 Classification of Outlets.....................................................................................................56 Channel Cluster..................................................................................................................57 Brand Order System of Coca Cola......................................................................................58 Product Description of Coca Cola........................................................................................59 Project Profile.............................................................................................................................68 Penetration of Mango Drinks in Siliguri Market................................................................69 Market Analysis for Understanding the market scenario & position of Maaza.................69 Analysis of Product Maaza in Respect of Siliguri Market..................................................70 Analysis of Supply History & Forecast the Future Sales....................................................70 Objectives.............................................................................................................................71 DCSMAT Business School Page 6

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Data Collection....................................................................................................................71 Tools used For Data Collection.......................................................................................71 Collected Survey Data.....................................................................................................72 Market Analysis Report for Understanding the market scenario..........................................73 Market Share of Mango Drinks Brands in Siliguri Market...........................................73 Effective Supply of Mango Drinks in Siliguri Market...................................................74 Market Share of Mango Drinks Brands According to Margin.......................................75 Market Share of Mango Drinks Brands According to Schemes.....................................76 SWOT Analysis of Mango Drinks in India....................................................................77 SWOT Analysis of Maaza..............................................................................................77 SWOT Analysis of Slice.................................................................................................78 SWOT Analysis of Frooti...............................................................................................79 Differential Price Analysis of Different Mango Drinks in Siliguri Market.........................80 SWOT Analysis of Maaza in Siliguri Market...............................................................82 Sales Forecasting.................................................................................................................83 Recommendations & Conclusion..................................................................................................85 Learning Outcome.........................................................................................................................86 Annexure.......................................................................................................................................87 Reference.......................................................................................................................................88

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Executive Summery
Penetration of mango drinks in Siliguri market implies the market share of mango drinks in Siliguri market. Here main three mango drinks giants Coca Cola, PepsiCo & Parle Agro marketed their mango drinks i.e. Maaza, Slice & Frooti respectively. India's mango obsession might be as old as the fruit but the business opportunities it is creating for food processing sector is something that has never happened before. While mango drink brands like Coca-Cola (Maaza), Pepsi (Slice), Dabur (Real Mango juice) and Parle Agro (Frooti) are promoting the category with new marketing and advertising campaigns. New capacities, driven by the mango juice and drink segment, are being added even as the industry consolidates itself. The total domestic processing capacity for the king of fruits has gone up many times in the past two years and now is estimated at 12,000 tonne per day during the season. The demand for processed Indian mango products is growing by about 25% in both the (1) domestic and the export markets. The organised beverage market in India is ruled by mango juices, nectars and drinks that have about 85% of the market share; about 38 million cases of mango-based drinks are consumed by (1) Indians every year. Similarly Coca-Cola, whose Maaza is said to have more than 35% market share for mango (1) drinks in India. The demand for this mango drinks not only in Siliguri but all over India is abnormal. Anybody can¶t forecast the exact demand & growth of this mango drinks eying on market. In Siliguri market 15 % sales solely comes from Maaza. Study on Penetration of mango drinks gives a vivid idea about the present situation of mango drinks market in Siliguri area and above all the role & contribution of Maaza in this Siliguri market. Maaza is produced only in three plants all over India. They are Dasna in UP, Khurda in Orissa & Wada in Maharashtra. These 3 plants produced & supply only 40 % of India¶s Maaza demand. So, identifying the exact demand & delivering the product accordingly is the major challenge.

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INTRODUCTION

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INDUSTRY OVERVIEW

SOFT DRINKS INDUSTRY
´For years the story in the non alcoholic sector centred on the power struggle between Coke and Pepsi. But as the pop fight has topped out, the industry·s giants have begun relying on new product flavours and looking to non carbonated beverages for growthµ - Barbara Murray. Three leading companies have prominent presence in the soft drink industry. The leaders include the Coca-Cola Company, PepsiCo, and Cadbury Schweppes. According to the Coca-Cola annual report, it has the most soft drink sales with $32 billion. The Coca-Cola product line has several popular soft drinks including Coca-Cola, Diet Coke, Fanta, Barq¶s, Sprite, Maaza etc selling over 400 drink brands in about 200 nations. PepsiCo is the next top competitor with soft drink sales grossing $28 billion for the two beverage subsidiaries, PepsiCo Beverages North America and PepsiCo International. PepsiCo¶s soft drink product line includes Pepsi, Mountain Dew, Miranda, Slice etc which make up more than one quarter of its sales. Cadbury Schweppes, the third major player had soft drink sales of $13 billion with a product line consisting of soft drinks such as A&W Root Beer, Canada Dry, and Dr. Pepper.

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. The prototype of all marketing and branding struggles, the "Cola Wars" keep expanding. The Pepsi and Coca Cola keep rolling out the big guns: duelling pop stars, and new branded products in the form of ³Vanilla Coke" and ³Pepsi Blue.´ They are fighting on the TV, in the fast-food restaurants, and in the supermarkets; they are also duelling in the schools. One of the biggest pushes of 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 DCSMAT Business School Page 10

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marketing in its purest form, unsullied by any pre-existing 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 ready-to-drink brands.

KEY SUCCESS FACTORS
Key factors for competitive success within the soft drink industry branch from the trends of the macro environment. Primarily, constant product innovation is imperative. A company must be able to recognize consumer wants and needs, while maintaining the ability to adjust with the changing market. They must keep up with the changing trends.

Another key factor is the size of the organization, especially in terms of market share. Large distributors have the ability to negotiate with stadiums, universities and school systems, making them the exclusive supplier for a specified period of time. Additionally, they have the ability to commit to mass purchases that significantly lower their costs. They must implement effective distribution channels to remain competitive. Taste of the product is also a key factor for success.

Furthermore, established brand loyalty is a large aspect of the soft drink industry. Many consumers of carbonated beverages are extremely dedicated to a particular product, and rarely purchase other varieties. This stresses the importance of developing and maintaining a superior brand image.

Price, however, is also a key factor because consumers without a strong brand preference will select the product with the most competitive price. Finally, global expansion is a vital factor in the success of a company within the soft drink industry. The United States has reached relative market saturation, requiring movement into the global industry to maintain growth.

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Variant Available
Soft drinks are available in glass bottles, aluminium cans and PET bottles for home consumption. Fountains also dispense them in disposable containers. Non- alcoholic soft drinks beverage market can be 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 in the cola products and non-cola products. Cola products accounts 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 four categories based on the types of flavours available namely: Orange, Cloudy Lime, Clear Lime and Mango. . Robust time ahead for soft drinks Soft drinks are expected to see robust volume growth over the forecast period. This will occur despite a total volume and constant value decline for carbonates. Growth will be led by bottled water and, from a smaller base and with slower growth, fruit/vegetable juice. Health and convenience are predicted to be the two most important factors affecting buying behaviour, as carbonates and concentrates play second fiddle to healthier bottled water and fruit/vegetable juice.

Overall Carbonated Soft Drink
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 and a British beverage company) has improved its position by acquiring key brands in the US, namely Dr. Pepper and Seven Up, along with A & W and Canada Dry. In 2001, however, Cadbury acquired moribund RC Cola, giving it a cola drink to battle against the big guys. This gave the company more shelf position and immediately gave the RC Cola brand, long a distant also-ran with weak 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 DCSMAT Business School Page 12

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numbers declined slightly. 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.

Product Coverage
Asian speciality drinks; Bottled water; Carbonates; Concentrates; Fruit/vegetable juice; Functional drinks; RTD coffee; RTD tea

Market trends and Industry challenges
In order to survive in this environment, companies must consider the market trends that will likely shape the industry over the next few years. This will help soft drink companies to understand the challenges they will encounter and to turn them into opportunities for process improvement, enhanced flexibility and, ultimately, greater profitability.

Market trends for the soft drink industry can be summarized by six fundamental themes: 

Changing consumer beverage preferences, Featuring a shift toward health-oriented wellness Drinks.  Growing friction between bottlers and Manufacturers in the distribution system.  Continually increasing retailer strength.  Fierce competition.  Complex distribution system composed of multiple Sales channels.  Beverage safety concerns and more-stringent Regulations. DCSMAT Business School Page 13

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Consumers turn to wellness and healthy drinks
In much of the developed world, a significant portion of the population is overweight or obese. This includes two-thirds of Americans and an increasing number of Europeans. Consequently, many people have started to actively manage their weight and change their lifestyles, a shift that is reflected in their choices in the beverage aisles: y Demand has increased for beverages that are Perceived to be healthy y Energy drink consumption has also climbed, due to The increasingly active lifestyles of teenagers This trend towards healthier drinks has created a number of new categories, and changed the consumption trends of the beverage industry as a whole. While previously dominated by carbonated soft drinks, the industry is now more evenly balanced between carbonates, and product categories with a healthier image, such as bottled water, energy drinks and juice: While carbonates are still the largest soft drink segment, bottled water is catching up fast, with an average of 58 litters consumed annually per capita. Among individual countries, Italy ranks number one in bottled water consumption, with the average Italian drinking177 litters per year. Overall, bottled water represents the fastest growing soft drink segment, expanding at 9percent annually. This growth is being partially driven by increasing awareness of the health benefits of proper hydration. The industry has responded to consumers¶ desire for healthier beverages by creating new categories, such as energy drinks, and by diversifying within existing ones. For example, the leading carbonated soft drink companies have recently introduced products with 50%less sugar that fall mid-way between regular and diet classifications. Similarly, a South African juice company has recently released a fruit-based drink that contains a Full complement of vitamins and nutrients.

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Bottled Water Market
Over the past 20 years, bottled water has been the beverage industry¶s fastest growing segment the world over, fuelled first by the desire for clean, safe drinking water and then by the demand for single serves water as an alternative to other refreshment beverages. Bottled water is a multi- million rupee growth industry on its way to becoming the most consumed beverage. In India, bottled water market is valued at more than Rs 10 billion (Rs 1000cr) while maintaining an unimaginable annual growth rate of more than 60%. Even though it accounts for only 5 percent of the total beverage market in India; branded bottled water is the fastest growing industry in the beverage sector. Seeing the ever increasing potential, experts predict that the market size of bottled water would surpass the size of the soft drinks market in the near future. Many major Indian FMCG and multinational food corporation are also expected to join the market, which has already more than 250, brands in the organized and unorganized sector with large, medium and small scale production units. The market is also expected to undergo a major consolidation phase. But even as the bottled water industry is in a powerful position, of late it has come under increased scrutiny and criticism. Bottled water continues uninhibited growth growing the fastest among all soft drinks, bottled water threw in another strong performance in 2005 with double digit volume and current value growth. Home delivery sales garnered pace, supported by population migration from rural to urban areas. This meant increasing pressure on an already crumbling public water distribution system in most cities. Tourism also boosted bottled water, with an increasing number of domestic and foreign tourists creating greater demand for bottled water. Trade sources point to the presence of over 600 bottled water manufacturers in India and the number is predicted to grow in the forecast period as demand continues unabated.

The market preference in India is highly region based. Whole cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavoured drinks are popular in southern states. Sodas too are sold largely in southern states besides sales through bars. Western markets have preference towards mango flavoured drinks. Diet Coke and Diet Pepsi constitute just 0.7% of the total carbonate beverage market. DCSMAT Business School Page 15

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Growth promotional activities
The government has adopted liberalized policies for the soft drink trade to give the industry a boast and promote the Indian brands internationally. Although the import and manufacture of international brands like Pepsi and Coke is enhanced in India the local brands are being stabilized by advertisements, good quality and low cost. The soft drinks market till early 1990s was in hands of domestic players like campa, thumps up, Lima 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 lacks outlets across the country in FY00, which the company is planning to increase to 10 lacks by FY10. On the other hand Pepsi Co's distribution network had 6 lacks outlets across the country during FY00 which it is planning to increase to 9 Lacks by FY10.

Retailers¶ power continuously increases
With Wal-Mart leading the charge, the world¶s dominant retailers are demanding better service and shorter order-to-delivery cycles from soft drink companies. This is dramatically reshaping the industry, forcing soft drink companies to become more efficient, while taking pricing power out of their hands. The dual need for improved supply chain agility and cost efficiency is challenging suppliers to revaluate the ways in which they plan and manage their supply chains, as they constantly search for approaches that will help them achieve the rock-bottom prices and operational excellence now expected in the industry. Furthermore, the growth of private-label products is encouraging manufacturers to take a number of steps to compete more effectively. Increasingly, they are turning to innovation and new product introduction as a means to achieve real differentiation as well as growth. Branded manufacturers are also looking to get closer to the consumer, with many of the larger ones piloting direct-to-consumer marketing approaches. They are also trying to better understand the in-store consumer experience by monitoring the execution of in-store activities. Nevertheless, many suppliers are losing brand equity. In recent years, a couple of factors have been fuelling the growing competition between manufacturers and Retailers: DCSMAT Business School Page 16

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Retailers are using their power to set higher standards for marketing and operational excellence, including escalating demands for improved service quality and shorter orderto-delivery cycles from manufacturers and distributors. Many of these demands, such as RFID, not only squeeze margins but also require significant capital investments. 

Because of their direct relationships with consumers, retailers have a deeper knowledge of consumer behavior.

Competition is becoming more and more difficult
In the beverage manufacturing industry, competition is growing due to the following factors: 

Constant demand for new niche products related to consumer preferences for healthier and more diversified offerings 

Industry consolidation, which has significantly raised the bar for the ³scale needed to compete´ 

The growth of private-label products. These competitive pressures have led to: 

SKU proliferation - number of SKUs in a typical beverage company has doubled from 1991 to 2001 

A plethora of new product failures: Only 20% are effective Page 17

y

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y y

Only 10% generate significant revenue Most fail within the first two years 

Further consolidation and rationalization to capture cost savings by improving operations and eliminating redundancy:

y

Industry leaders are acquiring small, high growth Companies

y

Mid-market players are vertically integrating

y

Profitability can only be improved through greater efficiency in the supply chain or through more-effective trade promotions, expenditures. which usually require considerable

Statutory regulation is increasing
Governments around the world are concerned about food safety and quality. Periodically, safety failures make big news in the global press. Amid this growing concern, regulators are cracking down on sanitation and variety of other food-safety requirements.

While food safety is the major focus in Europe, the emphasis in the US is more on bio-terrorism and food security. However, the provisions in the 2005traceability legislation in the US, which stemmed from the Bioterrorism Act of 2002, and those in the EU Directive 178, Articles 18 and 19, are very similar. The U.S. Food and Drug Administration (FDA) is proposing the registration and tracking of almost all domestic and imported food articles, but some are concerned that the complexity of the rules will overwhelm both the food industry and the FDA.

Each soft drink company must take these industry challenges into consideration, as well as its own strengths and market position, when looking for ways to drive innovation, accelerate growth DCSMAT Business School Page 18

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and increase margins. The next section outlines where some of the most promising opportunities for accomplishing these objectives can be found.

Trends and Opportunities in the Soft Drink Industry The Ingredients for Success
Soft drinks are gradually overtaking hot drinks as the biggest beverage sector in the world, with consumption rising by around 5 percent a year according to a recent report from Zenith International. But while the US remains the biggest market for now, Asia is likely to be the main driver of sales growth in the future. The industry on the whole is encountering new opportunities and challenges. Changing consumer demands and preferences require new ways of maintaining current customers and attracting new ones. Amid ever-increasing competition, beverage companies must intensely court customers, offer high quality products, efficiently distribute them, ensure safety, and keep prices low ± all while staying nimble enough to exploit new markets by launching new products. Market trends for the soft drink industry can be characterized by six fundamental themes: 1. Changing consumer beverage preferences, featuring a shift toward health-oriented, wellness drinks 2. Growing friction in the distribution system, induced by bottlers and manufacturers with conflicting interests 3. Continually increasing retailer strength and a corresponding decrease in the power of soft drink companies 4. Fierce competition, fueled by growth of private labels and product/packaging proliferation 5. A complex sales environment, composed of multiple channels all with unique management requirements DCSMAT Business School Page 19

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6. Beverage safety issues, driven by newly enacted US and EU regulatory requirements each soft drink company must take these industry challenges into consideration, as well as its own strengths and market position, when looking for ways to drive innovation, accelerate growth and increase margins.

PORTER¶S FIVE FORCE ANALYSIS OF SOFT DRINK INDUSTRY

Defining the industry:
Both concentrate producers (CP) and bottlers are profitable. These two parts of the industry are extremely interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap; for instance, CPs does some bottling, and bottlers conduct many promotional activities. The industry is already vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry would involve developing operations in either or both disciplines. Beverage substitutes would threaten both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% EBIT profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14%. This industry as a whole generates positive economic profits.

Rivalry:
Revenues are extremely concentrated in this industry, with Coke and Pepsi, together with their associated bottlers, commanding 73% of the case market in. Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, or even a duopoly between Coke and Pepsi, resulting in positive economic profits. To be sure, there was tough competition between Coke and Pepsi for market share, and this occasionally hampered profitability. DCSMAT Business School Page 20

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For example, price wars resulted in weak brand loyalty and eroded margins for both companies in the 1980s. The Pepsi Challenge, meanwhile, affected market share without hampering per case profitability, as Pepsi was able to compete on attributes other than price.

Substitutes:
Through the early 1960s, soft drinks were synonymous with ³colas´ in the mind of consumers. Over time, however, other beverages, from bottled water to teas, became more popular, especially in the 1980s and 1990s. Coke and Pepsi responded by expanding their offerings, through alliances (e.g. Coke and Nestea), acquisitions (e.g. Coke and Minute Maid), and internal product innovation (e.g. Pepsi creating Orange Slice), capturing the value of increasingly popular substitutes internally. Proliferation in the number of brands did threaten the profitability of bottlers through 1986, as they more frequent line set-ups, increased capital investment, and development of special management skills for more complex manufacturing operations and distribution. Bottlers were able to overcome these operational challenges through consolidation to achieve economies of scale. Overall, because of the CPs efforts in diversification, however, substitutes became less of a threat.

Power of Suppliers:
The inputs for Coke and Pepsi¶s products were primarily sugar and packaging. Sugar could be purchased from many sources on the open market, and if sugar became too expensive, the firms could easily switch to corn syrup, as they did in the early 1980s. So suppliers of nutritive sweeteners did not have much bargaining power against Coke, Pepsi, or their bottlers. NutraSweet, meanwhile, had recently come off patent in 1992, and the soft drink industry gained another supplier, Holland Sweetener, which reduced Searle¶s bargaining power and lowering the price of aspartame.

With an abundant supply of inexpensive aluminium in the early 1990s and several can companies competing for contracts with bottlers, can suppliers had very little supplier power. Furthermore, Coke and Pepsi effectively further reduced the supplier of can makers by DCSMAT Business School Page 21

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negotiating on behalf of their bottlers, thereby reducing the number of major contracts available to two. With more than two companies vying for these contracts, Coke and Pepsi were able to negotiate extremely favorable agreements. In the plastic bottle business, again there were more suppliers than major contracts, so direct negotiation by the CPs was again effective at reducing supplier power.

Power of buyers:
The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and mass merchandisers. Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power. Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability.

National mass merchandising chains such as Wal-Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers.

The least profitable channel for soft drinks, however, was fountain sales. Profitability at these location was so abysmal for Coke and Pepsi that they considered this channel ³paid sampling.´ This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their DCSMAT Business School Page 22

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products at these outlets. As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks.

Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. Property owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high. The customer in this case was the consumer, who was generally limited on thirst quenching alternatives.

The final channel to consider is convenience stores and gas stations. If Mobil or Seven-Eleven were to negotiate on behalf of its stations, it would be able to exert significant buyer power in transactions with Coke and Pepsi. Apparently, though, this was not the nature of the relationship between soft drink producers and this channel, where bottlers¶ profits were relatively high, at $0.40 per case, in. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners.

So the only buyers with dominant power were fast food outlets. Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales. Through other markets, however, the industry enjoyed substantial profitability because of limited buyer power.

Barriers to Entry:
It would be nearly impossible for either a new CP or a new bottler to enter the industry. New CPs would need to overcome the tremendous marketing muscle and market presence of Coke, Pepsi, and a few others, who had established brand names that were as much as a century old. Through their DSD practices, these companies had intimate relationships with their retail DCSMAT Business School Page 23

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channels and would be able to defend their positions effectively through discounting or other tactics. So, although the CP industry is not very capital intensive, other barriers would prevent entry. Entering bottling, meanwhile, would require substantial capital investment, which would deter entry. Further complicating entry into this market, existing bottlers had exclusive territories in which to distribute their products. Regulatory approval of intrabrand exclusive territories, via the Soft Drink Interbrand Competition Act of 1980, ratified this strategy, making it impossible for new bottlers to get started in any region where an existing bottler operated, which included every significant market in the US.

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BEVERAGE INDUSTRY IN INDIA
India is home to one of the most ancient cultures in the world dating back over 5000 years. Beverages industry in India plays an important role in the Indian FMCG market. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more market share and to satisfy the existing consumers.

BEVERAGES

Alcoholic

Non-Alcoholic
NonCarbonated Non-Cola

Carbonated

Cola

Non-Cola

The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: DCSMAT Business School Page 25

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y y y y y

Alcoholic, non-alcoholic and sports beverages Natural and Synthetic beverages In-home consumption and out of home on premises consumption. Age wise segmentation i.e. beverages for kids, for adults and for senior citizens Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.

If the behavioural patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: y The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. y The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. y Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category. y Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy. DCSMAT Business School Page 26

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THE SOFT DRINK MARKET
The soft drink markets can be segmented on the basis of place of consumption or on the basis of type of products. The segmentation on the basis of place of consumption divides the market into two parts: y

On-premise- 55% of the consumption of soft drinks is on premise i.e. restaurants, railways stations, cinema etc. At-home- the rest 45% of the market compromises of the soft drink purchased for consumption at home.

y

The market can also be segmented on the basis of types of products into cola products and noncola products.
y

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, and diet coke, Diet Pepsi etc.

y

Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available, namely:

o o o o

Orange Cloudy Lime Clear Lime Mango Orange flavor based soft drinks constitute around 20% of the market. The segment is largely dominated by national brands like Fanta of Coca Cola and Mirinda Orange of PepsiCo, which collectively form15% of the market rest of the market is in hands of smaller brands like Crush (earlier of Cadbury Schweppes and now of coca Cola), Gold Spot etc.

i.

ii.

Cloudy Lime flavor constitutes 17% of the market and is largely dominated by Limca of coca cola and Mirinda Lemon of PepsiCo. Limca is the market leader with around 70-75% of the market followed by Mirinda Lemon. DCSMAT Business School Page 27

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iii.

Clear Lime: this segment of the market witnessed good growth initially with all the players launching their brands in the segment. But now the growth in the segment has slowed down. The brands available in this segment are 7 Up, mountain dew of Pepsi, Sprite, nimbu fresh of Coca Cola. The segment constitutes 3% of the total soft drinks market.

iv.

Mango: this flavor segment constitutes 2% of the total soft drinks market and it directly competes with mango based fruit drinks like Frooti. The leading brands in this segment are: Maaza of Coca Cola, Mangola (Earlier of Dukes now of PepsiCo) and Slice of PepsiCo.

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COMPANY OVERVIEW

COCA COLA COMPANY
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THE COCA COLA COMPANY
Coca-Cola was created in 1886 by John S Pemberton, a pharmacist in Atlanta, Georgia, who sold the syrup mixed with fountain water as a potion for mental and physical disorders. The formula changed hands three more times before Asa D. Candler added carbonation and by 2003, Coca-Cola was the world¶s largest manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with more than 500 widely recognized beverage brands in its portfolio.

With the bubbles making the difference, Coca-Cola was registered as a trademark in 1887 and by 1895, was being sold in every state and territory in the United States. In 1899, it franchised its bottling operations in the U.S., growing quickly to reach 370 franchisees by 1910. Headquartered in Atlanta with divisions and local operations in over 200 countries worldwide, Coca-Cola generated more than 70% of its income outside the United States by 2003 INTERNATIONAL EXPANSION

Coke¶s first international bottling plants opened in 1906 in Canada, Cuba, and Panama. By the end of the 1920¶s Coca-Cola was bottled in twenty-seven countries throughout the world and available in fifty-one more. In spite of this reach, volume was low, quality inconsistent, and effective advertising a challenge with language, culture, and government regulation all serving as barriers. Former CEO Robert Woodruff¶s insistence that Coca-Cola wouldn¶t ³suffer the stigma of being an intrusive American product,´ and instead would use local bottles, caps, machinery, trucks, and personnel contributed to Coke¶s challenges as well with a lack of standard processes and training degrading quality. Coca-Cola continued working for over 80 years on Woodruff¶s goal: to make Coke available wherever and whenever consumers wanted it, ³in arm¶s reach of desire.´ The Second World War proved to be the stimulus Coca-Cola needed to build effective capabilities DCSMAT Business School Page 30

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around the world and achieve dominant global market share. Woodruff¶s patriotic commitment ³that every man in uniform gets a bottle of Coca-Cola for five cents, wherever he is and at whatever cost to our company´ was more than just great public relations. As a result of Coke¶s status as a military supplier, Coca-Cola was exempt from sugar rationing and also received government subsidies to build bottling plants around the world. TURN OF THE CENTURY GROWTH IMPERATIVE The 1990¶s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD) industry in the United States, achieving only 0.2% growth by 2000 (just under 10 billion cases) in contrast to the 5-7% annual growth experienced during the 1980¶s. While per capita consumption throughout the world was a fraction of the United States¶, major beverage companies clearly had to look elsewhere for the growth their shareholders demanded. The looming opportunity for twenty-first century was in the world¶s developing markets with their rapidly growing middle class populations.
THE WORLD¶S MOST POWERFUL BRAND

Interbrand¶s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the World and estimated its brand value at $70.45 billion . The ranking¶s methodology determined a brand¶s valuation on the basis of how much it was likely to earn in the future, distilling the percentage of revenues that could be credited to the brand, and assessing the brand¶s strength to determine the risk of future earnings forecasts. Considerations included market leadership, stability, and global reach, incorporating its ability to cross both geographical and cultural borders.

From the beginning, Coke understood the importance of branding and the creation of a distinct personality. Its catchy, well-liked slogans (³It¶s the real thing´ (1942, 1969), ³Things go better with Coke´ (1963), ³Coke is it´ (1982), ³Can¶t beat the Feeling´ (1987), and a 1992 return to ³Can¶t beat the real thing´) linked that personality to the core values of each generation and established Coke as the authentic, relevant, and trusted refreshment of choice across the decades and around the globe. DCSMAT Business School Page 31

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PATENTS, COPYRIGHTS, TRADE SECRETS AND TRADEMARKS Company owns numerous patents, copyrights and trade secrets, as well as substantial know-how and technology, which we collectively refer to as µµtechnology.¶¶ This technology generally relates to Company¶s products and the processes for their production; the packages used for products; the design and operation of various processes and equipment used in business; and certain quality assurance software. Some of the technology is licensed to suppliers and other parties. Company¶s sparkling beverage and other beverage formulae are among the important trade secrets of Company. Company own numerous trademarks that are very important to business. Depending upon the jurisdiction, trademarks are valid as long as they are in use and/or their registrations are properly maintained. Pursuant to company¶s bottler¶s agreements, company authorize bottlers to use applicable Company trademarks in connection with their manufacture, sale and distribution of Company products. In addition, we grant licenses to third parties from time to time to use certain of company¶s trademarks in conjunction with certain merchandise and food products. EMPLOYEES Company refer to its employees as µµassociates.¶¶ As of December 31, 2009 and 2008, Company had approximately 92,800 and 92,400 associates, respectively, of which approximately 17,900 and 16,500, respectively, were employed by consolidated variable interest entities (µµVIEs¶¶). The increase in the total number of associates in 2009 was primarily due to an increase in the Latin America operating group driven by its finished product business, as well as an increase in the Bottling Investments operating group. These increases were partially offset by the impact of the Company¶s ongoing productivity initiatives. As of December 31, 2009 and 2008, Company had approximately 11,700 and 13,000 associates, respectively, located in the United States, including Puerto Rico, of which approximately 190 and 90, respectively, were employed by consolidated VIEs.

Coca cola company, through its divisions and subsidiaries, has entered into numerous collective bargaining agreements. Company currently expect that it will be able to renegotiate such DCSMAT Business School Page 32

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agreements on satisfactory terms when they expire. The Company believes that its relations with its associates are generally satisfactory.

CORE CAPABILITIES
Consumer Marketing Marketing investments are designed to enhance consumer awareness of and increase consumer preference for brands. This produces long-term growth in unit case volume, per capita consumption and share of worldwide non alcoholic beverage sales. Through company¶s relationships with bottling partners and those who sell coke products in the marketplace, coke create and implement integrated marketing programs, both globally and locally, that are designed to heighten consumer awareness of and product appeal for coke brands. In developing a strategy for a Company brand, coke conduct product and packaging research, establish brand positioning, develop precise consumer communications and solicit consumer feedback. Coke integrated marketing activities include, but are not limited to, advertising, pointof-sale merchandising and sales promotions. Coke have disciplined marketing strategies that focus on driving volume in emerging markets, increasing coke¶s brand value in developing markets and growing profit in most developed markets. In emerging markets, Company is investing in infrastructure programs that drive volume through increased access to consumers. In developing markets, where consumer access has largely been established, coke¶s focus is on differentiating its brands. In company¶s most developed markets, coke continue to invest in brands and infrastructure programs, but at a slower rate than revenue growth. Company has focused on affordability and ensuring they are communicating the appropriate message based on the current economic environment.

Commercial Leadership The Coca-Cola system has millions of customers around the world who sell or serve our products directly to consumers. Coke focus on enhancing value for its customers and providing solutions to grow its beverage businesses. Company¶s approach includes understanding each DCSMAT Business School Page 33

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customer¶s business and needs, whether that customer is a sophisticated retailer in a developed market or a kiosk owner in an emerging market. Coke focus on ensuring that its customers have the right product and package offerings and the right promotional tools to deliver enhanced value to themselves and the company. Company is constantly looking to build new beverage consumption occasions to its customers¶ outlets through unique and innovative consumer experiences, product availability and delivery systems, and beverage merchandising and displays. Coke participate in joint brand-building initiatives with our customers in order to drive customer preference for its brands. Through coke¶s commercial leadership initiatives, coke embed ourselves further into its retail customers¶ businesses while developing strategies for better execution at the point of sale.

Franchise Leadership Coke must continue to improve its franchise leadership capabilities to give Company and our bottling partners the ability to grow together through shared values, aligned incentives and a sense of urgency and flexibility that supports consumers¶ always changing needs and tastes. The financial health and success of coke¶s bottling partners are critical components of the Company¶s success. Company work with its bottling partners to identify system requirements that enable coke to quickly achieve scale and efficiencies, and we share best practices throughout the bottling system. Coke system leadership allows company to leverage recent acquisitions to expand our volume base and enhance margins. With coke¶s bottling partners, we work to produce differentiated beverages and packages that are appropriate for the right channels and consumers. Coke also design business models for sparkling and still beverages in specific markets to ensure that coke appropriately share the value created by these beverages with our bottling partners. Coke will continue to build a supply chain network that leverages the size and scale of the Coca-Cola system to gain a competitive advantage.

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THE COCA COLA SYSTEM
We are a global business that operates on a local scale in every community where we do business. We create global reach with local focus because of the strength of the Coca-Cola system, which comprises our Company and our bottling partners²more than300 worldwide. Our Company manufactures and sells concentrates, beverage bases and syrups to bottling operations; owns the brands; and is responsible for consumer brand marketing initiatives. Our bottling partners manufacture, package, merchandise and distribute the finished branded beverages to our customers and vending partners, who then sell our products to consumers. All bottling partners work closely with customers²grocery stores, restaurants, street vendors, convenience stores, movie theatres and amusement parks, among many others²to execute localized strategies developed in partnership with our Company. Customers then sell our products to consumers at a rate of 1.6 billion servings a day. Our business operations are divided into the following geographies: Eurasia and Africa, Europe, Latin America, North America and Pacific as well as our Bottling Investments Group.

MISSION OF COCA-COLA
Create consumer products services and communications customer service and bottling system strategy process and tools in order to create competitive advantage and deliver superior value toConsumers as a superior beverage experience.  Consumers as an opportunity to grow profit through the use of finished drinks.  Bottlers as an opportunity to make reasonable to grow profits and value added  Suppliers as an opportunity to make reasonable when creating real value added in environment of system wide teamwork, flexible business system and continuous improvement.  Indian society in form of contribution to economic and social development. DCSMAT Business School Page 35

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VISION OF COCA-COLA
VISION FOR SUSTAINABLE GROWTH 
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.

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VISION 2020
The world is changing all around us. To ensure our business will continue to thrive over the next 10 years and beyond, we are looking ahead to understand the trends and forces that will shape our industry in the future. Our 2020 Vision creates a long-term destination for our business. It provides us with business goals that outline what we need to accomplish with our global bottling partners in order to continue winning in the marketplace and achieving sustainable, quality growth. For each goal, we have a set of guiding principles and strategies for winning throughout the entire Coca-Cola system.

VALUE
Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being: y y y y y y y LEADERSHIP: The courage to shape a better future PASSION: Committed in heart and mind INTEGRITY: Be real ACCOUNTABILITY: If it is to be, it¶s up to me COLLABORATION: Leverage collective genius INNOVATION: Seek, imagine, create, delight QUALITY: What we do, we do well

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HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED

COKE 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 reduce 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 Sunfill 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. 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. 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. 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.

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The complete manufacturing process had a documented quality control and assurance program including over 400 tests 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. In addition to its own employees, Coke indirectly created employment for another 125,000 Indians through its procurement, supply, and distribution networks.

MARKETING STRATEGY
Coca-Cola CEO Douglas Daft set the direction for the next generation of success for his global brand with a ³Think local, act local´ mantra. Recognizing that a single global strategy or single global campaign wouldn¶t work, locally relevant executions became an increasingly important element of supporting Coke¶s global brand strategy. In 2001, after almost a decade of lagging rival Pepsi in the region, Coke India re-examined its approach in an attempt to gain leadership in the Indian market and capitalize on significant growth potential, particularly in rural markets. The foundation of the new strategy grounded brand positioning and marketing communications in consumer insights, acknowledging that urban versus rural India were two distinct markets on a variety of important dimensions. The soft drink category¶s role in people¶s lives, the degree of differentiation between consumer segments and their reasons for entering the category, and the degree to which brands in the category projected different perceptions to consumers were among the many important differences between how urban and rural consumers approached the market for refreshment. In rural markets, where both the soft drink category and individual brands were undeveloped, the task was to broaden the brand positioning while in urban markets, with higher category and brand development, the task was to narrow the brand positioning, focusing on differentiation through offering unique and compelling value. This lens, informed by consumer insights, gave Coke direction on the trade-off between focus and breadth a brand needed in a given market and made clear that to succeed in either segment, unique marketing strategies were required in urban versus rural India. DCSMAT Business School Page 40

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BRAND LOCALIZATION STRATEGY: THE TWO INDIA INDIA A: ³Life ho to aisi´ ³India A,´ the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the country¶s population.33 This segment sought social bonding as a need and responded to aspirational messages, celebrating the benefits of their increasing social and economic freedoms. ³Life ho to aisi,´ (life as it should be) was the successful and relevant tagline found in Coca-Cola¶s advertising to this audience. INDIA B: ³Thanda Matlab Coca-Cola´ Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensive strategy. ³India B´ included small towns and rural areas, comprising the other 96% of the nation¶s population. This segment¶s primary need was out-of-home thirst-quenching and the Coca-Cola India no. 1. Soft drink category was undifferentiated in the minds of rural consumers. Additionally, with an average Coke costing Rs. 10 and an average day¶s wages around Rs. 100, Coke was perceived as a luxury that few could afford. In an effort to make the price point of Coke within reach of this high-potential market, CocaCola launched the Accessibility Campaign, introducing a new 200ml bottle, smaller than the traditional 300ml bottle found in urban markets, and concurrently cutting the price in half, to Rs. 5. This pricing strategy closed the gap between Coke and basic refreshments like lemonade and tea, making soft drinks truly accessible for the first time. At the same time, Coke invested in distribution infrastructure to effectively serve a disbursed population and doubled the number of retail outlets in rural areas from 80,000 in 2001 to 160,000 in 2003, increasing market penetration from 13 to 25%. Coke¶s advertising and promotion strategy pulled the marketing plan together using local language and idiomatic expressions. ³Thanda,´ meaning cool/cold is also generic for cold beverages and gave ³Thanda Matlab Coca-Cola´ delicious multiple meanings. Literally translated to ³Coke means refreshment,´ the phrase directly addressed both the primary need of this segment for cold refreshment while at the same time positioning Coke as a ³Thanda´ or generic cold beverage just like tea, lassi, or lemonade. As a result of the Thanda campaign, Coca-Cola won Advertiser of the Year and Campaign of the Year. DCSMAT Business School Page 41

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RURAL SUCCESS Comprising 74% of the country's population, 41% of its middle class, and 58% of its disposable income, the rural market was an attractive target and it delivered results. Coke experienced 37% growth in 2003 in this segment versus the 24% growth seen in urban areas. Driven by the launch of the new Rs. 5 product, per capita consumption doubled between 2007 - 2008. This market accounted for 80% of India¶s new Coke drinkers, 30% of 2008 volume, and was expected to account for 50% of the company¶s sales in 2008.

HCCBPL STRUCTURE
Coca-cola is a world class company in "low margin, high volume" business which means sales of high volume for the product in order to be profitable and complete in the global market. * * Company Owned Bottling Operation (COBO) Franchisee Owned Bottling Operation (FOBO)

COBO : COBO stand for company owned bottling operations; COBO has been of Coke Company's biggest strategy, which has proved to be winner. A bottling operation is a capital intensive business, particularly so the returnable bottle market like in India and the investment is the forth level. Apart from the capital cost of plant and equipment the bottles has to invest in bottles and crates, truck and cooling structure (Visi. Coolers and ice boxes) at the retail point industry estimates @Rs. Crate which is equivalent to the price at which the crate enters the distribution system Bottlers operates on margins around 10% with the bulk of the killing (between Rs. 24 and Rs. 30 per crate or about 20%) being made by the retailer. Excise and other taxes amounting Rs. 40 per crate. The going for a COBO is the risk of coke Company and it is also implied a big attitude change from a totally marketing orientation to an operation mindset. DCSMAT Business School Page 42

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COBO'S IN INDIA COBO¶s are present across the nation, the locations are given below: y Mumbai, Bangalore, Ahemadabad, Chennai, Calcutta & Jalpaiguri unit also

FOBO
FOBO stand for franchise owned bottling operation, in India Pepsi has franchise. In the case the company supplies its soft drink concentrate to its franchies (bottle syrup). Coca-cola has taken a more capital - intensive route of the owning and running its own plants along side those of its franchises. Coca-cola pumped in money to upgrade plants of franchises, which were weaker did not have financial worth were given massive support in form of interest free loans to upgrade their operations. Getting into FOBO has helped Coke Company on several fronts. First, it has enabled Pepsi to focus on marketing operations as much as it has on operation fronts. Another gain of going FOBO is that since the franchises have to invest in plants and machines glass bottles, trucks, and infrastructure, the cost burden has been reduced.

FOBO IN INDIA: FOBO are located at the following places: y Part of Delhi, Punjab, Part of Andhra Pradesh, Calcutta and south bengal.

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PRODUCTION PROESS OF COCA-COLA
REFINED SUGAR WATER TREATMENT

CARBON DIOXIDE

SIMPLE SYRUP

FILTARATION

CONCENTRATION

FINAL SYRUP

DE-CREATOR PROPOTIONER COOLER

FILTER CROWNER FULL PRODUCT INSPECTION

EMPTY BOTTLE IMDEPECTION

PACKING

BOTTLE WASH

WARE-HOUSE

PREE-IN-FEED INSPECTION

CASE CLEANING UNCASHER

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Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Chief Executive Officer

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central)

Regional Vice President (South)

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ORGANIZATION STRUCTURE
AGM/AOD Unit 1 AGM/AOD Unit 2 AGM/AOD Unit 3 Region Manager Channel

Region Finance

Region Human Resource Region Vice President

Region Customer Service

Region External Affairs

Region Cold Drink

Region Legal Region Capability Management

Region BSG

Region Capability dev Manager Region Channel DCSMAT Business School Page 46

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A.G.M

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SALES DEPARTMENT STRUCTURE

Plant Manager Route to Market Human Resource Manager Finance Manager General Sales Manager Area Sales Manager Sales Executive Marketing Channel Manager Area Capability Manager Key Accounts Sales Trainers Market Developer Distributors And Salesmen

AGM/AOD

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PRODUCT MIX OF COCA COLA
BOTTLES: Coca-cola Thums up Sprite Limca Fanta Maaza (mango) Minute maid Nimbu fresh 200ml...300ml...600ml...1500ml... 200ml...300ml...600ml«.1500ml«. 200ml...300ml...600ml...1500ml... 200ml...300ml...600ml...1500ml... 200ml...300ml...600ml...1500ml 250ml«..600ml««.1200ml 400ml

Minute maid (pulpy orange) 400ml««1000ml Kinley (Soda) Kinley (Water) CANS: Diet coke Coca-cola Thumps up Fanta Kinley(soda) Kinley (Water ) 330ml 330ml 330ml 330ml Mostly those who consumer liquor. Preferred by all type of consumers. 300ml...500ml 1000ml

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COMPETITORS TO HCCBPL
The key competitors for HCCBPL are the following

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y

PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water.

y

PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to Pepsi.

y

Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people. Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever since times and people have laid all their trust in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange.

y

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MARKETING MIX (4 P¶s)
Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing objectives. It has a classification for these marketing tools. These marketing are classified and called as the Four Ps i.e. Product, Price, Place and Promotion. The most basic marketing tool is product which includes product design, quality, features, branding, and packaging. A critical marketing tool is price i.e. the amount of money that customers pay for the product. It also includes discounts, allowances, credit terms and payment period. Place is another key marketing mix tool. And it includes various activities the company undertakes to make the product accessible and available to the customer. Some factors that decide the place are transport facilities, channels of distribution, coverage area, etc. Promotion is the fourth marketing mix tool which includes all the activities that the company undertakes to communicate and promote its product to target market. Promotion includes sales promotion, advertising, sales force, public relations, direct marketing, etc.

PRODUCT
A business needs to consider the products that it produces and the stage of the product life cycle that a product is at. Marketing strategies will vary according to the type of product and its stage in life cycle. In marketing, a product is anything that can be offered to a market that might satisfy a want or need. It is of two types: Tangible (physical) and Intangible (non-physical). Since services have been at the forefront of all modern marketing strategies, some intangibility has become essential part of marketing offers. It is therefore the complete bundle of benefits or satisfactions that buyers perceive they will obtain if they purchase the product. It is the sum of all physical, psychological, symbolic, and service attributes, not just the physical merchandise. All products offered in a market can be placed between Tangible (Pure Product) and Intangible (Pure Service) spectrum.

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A product is similar to goods. In accounting, goods are physical objects that are available in the marketplace. This differentiates them from a service, which is a non-material product. The term goods is used primarily by those that wish to abstract from the details of a given product. As such it is useful in accounting and economic models. The term product is used primarily by those that wish to examine the details and richness of a specific market offering. As such it is useful to marketers, managers, and quality control specialists. A service is a non-material or intangible product - such as professional consultancy, serving, or an entertainment experience. The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colourings, phosphoric acid, caffeine, citric acid and natural flavours. The caffeine free Pepsi-Cola contains the same ingredients but no caffeine.

PRICE
In economics and business, the price is the assigned numerical monetary value of a good, service or asset. Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. Pricing is a big part of the marketing mix. Choosing the right price and the right pricing strategy is crucial to the marketing process. The price of the product is not something that is fixed. On the other hand the price of the product depends on many other factors. Some times the price of the product has got nothing to do with the actual product itself. The price may act as a way to attract target customers. The price of the product is decided keeping many things in mind. These things include factors like cost incurred on the product, target market, competitors, consumer buying capacity etc. Pepsi again decides it price on the basis of competition. The best think about the company Pepsi is that it is very flexible and it can come down with the price very quickly. The company is renowned to bring the price down even up to half if needed.

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PLACE
Place is a term that has a variety of meanings in a dictionary sense, but which is principally used in a geographic sense as a noun to denote location, though in a sense of a location identified with that which is located there. In marketing, place refers to one of the 4 P's, defined as "the market place". It can mean a geographic location, an industry, a group of people (a segment) to whom a company wants to sell its products or services, such as young professional women (e.g. for selling cosmetics) or middle-aged family men (e.g. for selling family cars). Pepsi again has spread worldwide. Pepsi when entering a new market does not go in alone but it looks for partners and mergers. Till now Pepsi has collaborated with companies like Quaker Oats, Frito-lays, Lipton, Starbucks, etc. Pepsi like Coke has spread all over the world. It is because of this worldwide spread that now it is coming up with Advertisements which can be broadcasted in the different nations in the world.

PROMOTION
This refers to the promotion of the product to the target market. This is achieved through a combination of: advertising: use of electronic and print media. The "reach" (how many people will see the advert), frequency (how many times will I advertise the product?) and impact of the advertising must also be evaluated. Promotion is one of the four aspects of marketing. Promotion comprises four subcategories: 1. Advertising 2. Personal selling 3. Sales promotion 4. Publicity and public relations

Personal selling: what happens in the "shop", contact between sales people and consumers or customers. DCSMAT Business School Page 54

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Sales promotion: use of gimmicks and incentives e.g. competitions. Sponsorship and promotional licensing: including specific products sold under license that promotes the business (e.g. football jumpers). Publicity or public relations: "adversarial" in local papers or special promotional materials.

The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Both the companies Pepsi and coke are famous for their promotions. The rivalry was first started when Pepsi started with its blind taste tests known as the Pepsi Challenge. The challenge is designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences. The challenge takes the form of a taste test. At malls, shopping centers and other public locations, a Pepsi representative sets up a table with two blank cups, one containing Pepsi and one with Coke. Shoppers are encouraged to taste both colas, and then select which drink they prefer. Then the representative reveals the two bottles so the taster can see whether they preferred Coke or Pepsi. If Pepsi is revealed, the shopper is given a small prize. The implication is that Pepsi tastes better than Coke, and thus consumers should purchase Pepsi.

CORPORATE SOCIAL RESPONSIBILITY
As one of the largest and most prominent companies in the world, Coca-Cola took seriously its ability and responsibility to positively affect the communities in which it operated. The company¶s mission statement, called the Coca-Cola Promise, stated: ³The Coca-Cola Company exists to benefit and refresh everyone who is touched by our business.´ The Company has made efforts towards good citizenship in the areas of community, by improving DCSMAT Business School the quality of life in Page 55

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the communities in which they operate, and the environment, by addressing water, climate change and waste management initiatives. Their activities also included The Coca-Cola Africa Foundation created to combat the spread of HIV/AIDS through partnership with governments, UNAIDS, and other NGOs, and The Coca-Cola Foundation, focused on higher education as a vehicle to build strong communities and enhance individual opportunity. Coca-Cola¶s footprint in India was significant as well. The Company employed 7000 citizens and believed that for every direct job, 30-40 more were created in the supply chain. Like its parent, Coke India¶s Corporate Social Responsibility (CSR) initiatives were both community and environment-focused. Priorities included education, where primary education projects had been set up to benefit children in slums and villages, water conservation, where the Company supported community-based rainwater harvesting projects to restore water levels and promote conservation education, and health, where Coke India partnered with NGOs and governments to provide medical access to poor people through regular health camps. In addition to outreach efforts, the company committed itself to environmental responsibility through its own business operations in India including: Environmental due diligence before acquiring land or starting projects ‡ Environmental impact assessment before commencing operations ‡ Ground water and environmental surveys before selecting sites ‡ Compliance with all regulatory environmental requirements ‡ Ban on purchasing CFC-containing refrigeration equipment ‡ Waste water treatment facilities with trained personnel at all company-owned bottling operations ‡ Energy conservation programs ‡ 50% water savings in last seven years of operations DCSMAT Business School Page 56

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MARKET SEGMENTATION OF COCA COLA

SEGMENTATION

Channel cluster GROCERY

Locality income LOW

Outlet volumes DIAMOND GOLD

E&D-1/2 CONVINIENCE

MEDIUM HIGH

SILVER BRONZE

Classification of outlets on the basis of volume
There are four types of outlets according to the volume of sales of the outletDiamond Gold Silver Bronze 800>C/s & above per year 500-799C/s per year 200-499C/s per year <200C/s per year Page 57

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CHANNEL CLUSTER
(A) GROCERY STORE Grocery (customer profile): Store stocking a variety of regular uses household items. The channels provide an opportunity for penetration as it propels home consumption. It includes all kirana stores, juice, departmental stores, supermarkets, provision stores etc. Necessary Availability - 1.5 liter and 300ml (B) EATING & DRINKING CHANNEL- 1 Eating and Drinking Channel: Outlets which are having less than five tables comes under channel one. Outlets range from the high-end restaurants to the smaller dhabas. These outlets offer multiple opportunities to effect sales as people usually order something to drink along with food. It includes - Restaurants - Bars and Pubs - Dhabas - Cafes (C) EATING & DRINKING CHANNEL 2 It includes bakery, sweet shops, tea shops, soft drink shops and juice centre which have more than five tables. (D) CONVENIENCE CHANNEL Pan/bidi shops (customer profile) : This segment includes PAN BIDDI outlets that stock cigarettes, mint, confectionary. It covers STD/ISD phone booths, travel channel etc. Small outlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml. DCSMAT Business School Page 58

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BRAND ORDER SYATEM OF COCA COLA

COLOJ-K

COLA

LEMON

ORANGE

JUICE

KINLEY

COKE THUMS UP

FANTA

KINLEY

SPRITE

MAAZA MMPO/MMNF

LIMCA

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Coca-Cola: Coca-Cola is 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. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States.

Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find CocaCola in virtually every part of the world.

Available in the following flavors: Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.

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Sprite

Introduced in 1961, sprite is the world's leading lemon-lime flavoured soft drink. Sprite is sold in more than 190 countries and ranks as the no. 4 soft drink worldwide, with a strong appeal to young people. Millions of people enjoy sprite because of its crisp, clean taste that really quenches your thirst. But sprite also has an honest, straightforward attitude that sets it apart from other soft drinks. Sprite encourages you to be true to who you are and to obey your thirst.

Available In The Following Flavors: Bitter Lemon Citrus Grapefruit, Citrus, Lemon And Lemon Lime.

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Slogan:- ³Taste the Thunder´ It is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977. ³Coca-Col´ Company acquired Thumps UP in 1993

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This Thirst-Quenching Beverage Features A Fresh, Light Lemon-Lime Taste and Fun-Loving Attitude. It's A Home-Grown, National Treasure In India, Where It Was Acquired By The Coca-Cola Company In 1993. Limca Continues To Build A Loyal Following Among Young Adults Who Love The Lighthearted Way It Complements The Best Moments Of Their Lives.

Available In the Following Flavour: Lemon Lime.

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: 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.

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Drink Type: Juice/Juice Drink Maaza: With the real fruit taste kids love, plus added calcium, Maaza's tagline, "Yaari-Dosti Taaza Maaza," means "friendship moments with fresh Maaza" in Hindi. Available in the following flavors: Mango, Orange and Pineapple. Available in the following location: India.

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Drink Type: Water Kinley: Kinley is a high quality bottled water processed with added minerals popular among adults who seek a better quality of life and a healthy lifestyle. Available in the following flavor: Unflavored. Drink Type: Soft Drink Kinley: Kinley is a carbonated water that comes in wide array of variants such as tonic, bitter lemon, club soda and a myriad of fruit flavors. Available in the following flavors: Apple Peach, Bitter Grapefruit, Bitter Herbal, Bitter Lemon, Bitter Water, Blueberry Pomegranate, Club Soda, Ginger Ale, Lemon and Raspberry.

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Penetration of mango drinks in Siliguri market
Penetration of mango drinks in Siliguri market implies the market share of mango drinks in Siliguri market. Here main three mango drinks giants Coca Cola, PepsiCo & Parle Agro marketed their mango drinks i.e. Maaza, Slice & Frooti respectively. Maaza is produced only in three plants all over India. They are Dasna in UP, Khurda in Orissa & Wada in Maharashtra. These 3 plants produced & supply only 40 % of India¶s Maaza demand. So, identifying the exact demand & delivering the product accordingly is the major challenge. Study on Penetration of mango drinks gives a vivid idea about the present situation of mango drinks market in Siliguri area and above all the role & contribution of Maaza in this Siliguri market. There are three factors are very important for measuring the market share of Maaza in Siliguri market. Co-ordination of these three factors is very important for positioning Maaza as the best selling product in Siliguri market. They are

1. Analysis of market for understanding the market scenario & position. 2. Analysis of Product Maaza in respect of Siliguri market. 3. Analysis of supply history & forecast the future demand.

Market analysis for understanding the market scenario & position of Maaza.
Market analysis is a very important tool for understanding the market scenario & the position of a product in the market. Through the analysis we can get the information regarding the opportunity and the threats lying in the market and what type of problem & difficulties are facing the products. Market analysis also identifies the consumers¶ preferences for the product and what will be the future trends. This analysis also helps the marketers to understand & compare their product with their competitors. What are the special offers & promotional events the competitors are delivering for capturing the market. Here I chose 1200 outlets randomly as sample for analysing the market of Siliguri area. I chose the retail outlets according to the geographic area of Siliguri not depending on demographical basis. DCSMAT Business School Page 69

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After visiting the outlets I ask some questions to the retailers about the current position and his/her opinion regarding the mango drinks marketing strategy adopted by Maaza and Maaza¶s position.

Analysis of Product Maaza in respect of Siliguri market.
Product analysis is very important to know what are the strengths, weakness, opportunity & threats they have. Comparative study of different mango drinks gives a vivid idea about their positions, strengths & weakness in the respective market. Details analysis of this gives a better outlook to the marketers for understanding their own product as well as the competitors.

Analysis of supply history & forecast the future demand
In every FMCG companies supply chain management is vital. In the modern supply chain, forecasting is necessary for companies that manufacture items for inventory and that are not made to order. Manufacturers will use material forecasting to ensure that they produce the level of material that satisfies their customers without producing an overcapacity situation where too much inventory is produced and remains on the shelf. Equally, the forecast must not fall short and the manufacturer finds them without inventory to fulfil customer¶s orders. The forecast is not static and should be reviewed by management on a regular basis. This is to ensure that information on future trends, the internal or external environment is incorporated into the forecast to give a more accurate calculation. Statistical forecasts are best estimates of what will occur in the future based on the demand that has occurred in the past. Historical demand data can be used to produce a forecast using simple linear regression. This gives equal weighting to the demand of the historical periods and projects (2) the demand into the future. Availability of right products at the right time is the basic principle of supply chain management. A good forecast will support the stockist, distributers & market developers (MD) to deliver the goods to the customers at the right time, which will automatically increase and brand loyalty of the customers towards the company.

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Objectives 
To analyze present mango drinks market scenario in Siliguri market area.  To analyze competitors & theirs marketing strategy.  To maximize the market share through well distribution.  To forecast future sales & build a good warehousing system as well as build a good supply chain management system.

DATA COLLECTION
The data which I have collected are purely primary data. A total of one thousand two hundred outlets were visited in Siliguri market. By that I have collected the details of the retailers and took some suggestions also from them. My mentor suggests me the area where I¶ll go to collect the information. Every Monday my mentor gave me the instruction where to go and every Saturday he checked the data which I have collected and on the basis of this he used to give me the suggestions and instructions. The only challenges I have faced that some of the retailers aren¶t want to help me to collect the data properly. On the other hand I faced lot of problems as a stranger to find out the retail shops in some remote geographic places in Siliguri market area. I have analysed and compiled the data based on the suggestions given from my mentor. The final collected data of Siliguri market is given as follows.

TOOLS USED FOR DATA COLLECTION 
Market segmentation on the basis of geography.  Survey questioners.

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Collected Data

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Market Share of Mango Drinks Brands in Siliguri Market
Frooti 9% Slice 22%

Maaza
69%

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Effective Supply of Mango Drinks in Siliguri Market

Parle Agro 9%

PepsiCo 36%

Coca Cola 55%

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Market Share of Mango Drinks According to Margin
Parle Agro 8% PepsiCo 31% Coca Cola 61%

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Market Share of Mango Drinks According to Scheme

Parle Agro 5%

Coca Cola 27% PepsiCo 68%

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SWOT Analysis of Mango Drinks in India
Strength
1. Market leader in NCSD category-60% Market share. 2. As a fruit juice Mango drinks is mostly accepted throughout India. 3. Ready to serve fruit drinks. 4. Enriched by different vitamins. 5. Lower entry barrier.

Weakness
1. Consumers are mostly children & women. 2. Presence of higher amount of carbohydrates & sugar. 3. It isn¶t perceived as health drinks.

Opportunity
1. Higher availability of resources. 2. Target customers are frequent buyers.

Threat
1. Availability of other fruit juices in reasonable prices. 2. Tight competitions with carbonated soft drinks. 3. High consumer preference for flavors other than mango and green mango.

SWOT Analysis of Maaza
Strength
1. 2. 3. 4. Mostly accepted fruit drinks. Available in different pack size. Maaza has got a strong Brand Equity. Efficient distribution network-readily available. 5. Maaza is a health drink - Contains Vitamin A, B, C.

Weakness
1. Chilled form taste better. 2. Maaza is not perceived as a health drink. As per survey majority of respondent didn¶t consider Maaza has a health drink. 3. Margin given to retailers and distributors is less as compared to its competitors. 4. Maaza has no brand ambassador.

Opportunity
1. Huge untapped unorganized sector in NCSD category.

Threat
1. So many competitors. 2. Competitors are having many pack sizes. Page 77

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2. Growing market share of NCSD category. 3. Ready to serve fruit drinks. 4. Available throughout the year. 5. Huge untapped market in other flavors - Orange, Pineapples, Grape. 6. Demographically, in the coming years around 55% of the population will consist of below 35 years in age, which should be major target market for Maaza.

3. Presence of huge unorganized market. 4. High consumer preference for flavors other than mango and green mango. 5. Competition with Soft drinks giants ± Parle Agro and Pepsi.

SWOT Analysis of Slice
Strength
1. 2. 3. 4. Different pack size. Slice got good brand equity. Most popular brand ambassador. Running more Schemes.

Weakness
1. Taste is not good like its competitors. 2. Not perceived as health drinks.

Opportunity
1. Growing market share in NCSD group. 2. Increasing health awareness among consumers, 88% of those preferred fruit drink to carbonated drink.

Threat
1. Main competitor is Maaza & Frooti, they have good market share. 2. Tight competition with carbonated soft drinks. 3. High consumer preference for flavors other than mango and green mango.

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SWOT Analysis of Frooti
Strength
1. Innovative - First packaged Mango drink in Indian market, first to introduce Tetra pack, PET bottle packaging in NCSD category. 2. Frooti has got a very large quantity basket - available in various quantities like 65 ml, 200 ml, 250 ml, 500 ml and 1 Liter & 2liter. 3. Efficient distribution network-readily available. 4. Frooti has got a strong Brand Equity.

Weakness
1. Frooti is not perceived as a health drink. As per survey majority of respondent didn¶t consider Frooti has a health drink. 2. Frooti has limited variety of flavor only mango . 3. Margin given to retailers and distributors is less as compared to its competitors. 4. The main target audience of Frooti is kids. 5. No brand expansion - Brand equity of Frooti is not utilized properly.

Opportunity
1. 2. 3. 4. Huge untapped unorganized sector in NCSD category. Huge untapped market in other flavors - Orange, Pineapples, Grape. Growing market share of NCSD category. Demographically, in the coming years around 55% of the population will consist of below 35 years in age, which should be major target market for Frooti. Increasing health awareness among consumers, 88% of those preferred fruit drink to carbonated drink.

Threat
1. Decreasing share in NCSD category Fruit juice segment consisting of Real and Tropicana is increasing at the rate of 2025% per annum as compared to sluggish growth in other segment. 2. Presence of huge unorganized market. 3. High consumer preference for flavors other than mango and green mango. 4. Competition with global giants - Coke and Pepsi.

5.

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Differential analysis of Mango Drinks According to Price in Siliguri Market
Prices of Maaza
Pet Size Price (Rs) 200 ml TTP 12 250 ml Mobile 17 250 ml RGB 12 600 ml Mobile 28 1200 ml Mobile 50

Prices of Slice
Pet Size Price (Rs) 200 ml TTP 10 200 ml RGB 10 500 ml Mobile 25 1200ml Mobile 55

Prices of Frooti
Pet Size 110 ml TTP 5 200 ml TTP 10 250 ml 500 ml + (100 ml Free) 27 1000 ml + (200 ml Free) 45 2000 ml

Price (Rs)

13

70

Different company, having different pack size to meet the demand of different levels of customers. Such as, Maaza having 200 ml TTP, 250 ml RGB (returnable glass bottle), 250 ml Mobile pack, 600 ml Mobile pack & 1200 ml Mobile pack. Slice is having 200 ml TTP, 200 ml RGB, 500 ml Mobile, and 1200 ml Mobile pack. Companies are generally having so many pack sizes only for meeting different types of demand of different kind of customers. Now a days The companies are looking at larger pack formats and will focus on a well planned SKU (stock-keeping unit) strategy to addresses µon-the-go¶ as well as µin-home¶ consumption for drinks. As an example of Frooti a one-liter carton and two-liter PET pack to cater mainly to in-home consumers and families who prefer staggered consumption. A 600 ml PET bottle priced Rs 28 is another new launch of Maaza, targeted at on-the-go consumers. Prices of Frooti in various SKUs range from Rs 5 for a 100 ml pack to Rs 70 for the two-liter pack.(1)

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On the other hand, companies are also adapting different pricing strategy to attract the customers. While Maaza 1200 ml offers to the customers at a price of 50, same time its competitor Frooti adopt different policy to compete with its rival Maaza by offering 1000ml Frooti at a price of only 45, in which 200 ml is absolutely free. So, customers are getting 1200 ml mango drinks at an Rs 45 only. Frooti is also adapted another policy to attract little amount consuming customers by making 110 ml TTP at only Rs 5. According to this kind of strategy, Maaza is far behind from its competitors. Because they don¶t have 100 ml TTP which is especially for children, the lower volume customers. On the other hand, when customers are getting 1200ml Frooti in Rs 45, so why they would pay more for Maaza. In general retailers are selling each of these products above the MRP. MRP of 600 ml Maaza is Rs. 28, so retailers can easily sell it in Rs. 30. But in case of 1200 ml Maaza, the MRP is Rs. 50. If the retailers want to sell it above 50 then customers need to pay some more coins which are very difficult for customers. Same thing happen with TTP, whose MRP is 12, so retailers are asking for 15 or 20 for this TTP. So, retailers are much interested to sell Tropicana TTP whose price Rs 10. 600 ml Maaza is best selling product as well as best selling pet size only because is price.

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Hypothesis test for Market Share of Mango Drinks Brands 
Null hypothesis (H0 ): Maaza has more Market share than its main competitors (Slice & Frooti).  Alternate Hypothesis (H1): Maaza has not more Market share than its main competitors (Slice & Frooti).  Let the level of significance is( )= 5%In testing the hypothesis since the test is two tailed So, Z =+-1.96  TEST FORMULA Z=P1-P2/¥PQ[1+ 1]/ n1 n2 P= n1P1 +n2P2/ n1+n2 Q= (1-P) Where, P-Total population proportion of Maaza & its competitors. P1-Sample proportion of Maaza P2-Sample proportion of Slice & Frooti n1- sample size of Maaza n2- sample size of Slice & Frooti After calculated value is Z=1.34 which is less then calculated from the table Z=1.96 hence null hypothesis is accepted. CONCLUSION ± Maaza has more Market share than its main competitors (Slice & Frooti).

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SWOT Analysis of Maaza in Siliguri Market
Strength
1. Most selling & most demanded mango drink in Siliguri market. 2. Adopted good pricing strategy. 3. Available in different pack size. 4. Efficient distribution network-readily available. 5. Maaza has good brand equity. 6. Most tasty mango drinks as per customer survey.

Weakness
1. Availability is very poor. 2. Margin given to retailers and distributors is less as compared to its competitors. 3. No advertisements of Maaza. 4. No schemes running for Maaza. 5. All the pack sizes aren¶t available all the time. 6. Lower margin for retailers. 7. No promotional offers for Maaza.

Opportunity
1. Huge untapped market. 2. Huge selling as a tourist spot.

Threats
1. Competitors run good schemes. 2. Availability of Slice & Frooti is better than Maaza. 3. Not produced in local plant (Rani nagar). 4. Transportation, Supply & distribution cost is too high than its competitors. 5. Supply is very poor.

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Sales Forecasting
Here I put the last four months Maaza sales report of Siliguri area. From this data, by using Trend projection Model of forecasting I got July month¶s approximate Sales figure. All the figures in Case.

Month
March April May June July

Sales of Maaza (in Case)
6408 8776 5407 7909 (till 28th June) 7408 (Forecasted)

Sales Figure of Maaza in Siliguri Market
Series1 8776 7909 7408.5 6408 5407

March

April

May

June

July

I use the Trend Projection Model for forecasting July months sale because in this kind of past sales shows a consistent increase or decrease over time. Because this kind of time series is not stable, so Trend Projection Model is the best applicable model for forecasting the future sales. DCSMAT Business School Page 84

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According to the market survey & from the data analysis I got that demand for 600 ml Maaza is 72%, 250 ml Maaza is 16%, TTP is 8% and for 1200 ml Maaza is only 4%.

Most Sold Pet Sizes of Maaza

TTP 8% 250 ml 16%
1200 ml 4%

600 ml 72%

From the above data & figure we can interpret the future demand for July accordingly:

Pet Size 600 ml 250 ml TTP 1200 ml

Demand Percentage 72 16 8 4

Forecasted Demand for July (in Case) 5334 1185 592 296

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Recommendation & Conclusion 
Improve the co-ordination between supply & demand of Maaza.  Steady and fast implementation of promotional activities (etc: discounts).  Need to start local advertisements for Maaza.  Try to improve retailer¶s margin.  Stock all the pack sizes all time.  Need to store 14 days stock in the warehouse of the distributers.  Make effective availability of products in remote areas also.  Company should keep a track on its retailer¶s feedback. 
Need to change the pricing strategy. 

Appoint Brand ambassador.  Increase production capacity of existing Maaza plant.  Increase the number of production unit.  Maintain sufficient resources (manpower & vehicles) for increasing market share.  Need to start some promotional discount & schemes on Maaza for encouraging retailers to sell more Maaza. 

Implement an alternate solution during the time of distributor problem.
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Learning Outcome
The learning outcome that I have experienced by doing this project is invaluable. This helps me to understand entire marketing situation of coke in Siliguri market. The strategies adopted by coke to increase its market share are unique in nature. And the entire organization structure is different from its main competitor Pepsi. The main difference is in the case of market developers. Instead of market developers Pepsi has only sales man. This is considered as the main reason that makes coke unique from Pepsi. I am confident that, I will be able to implement these acquired skills in my future.

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ANEXTURE
QUESTIONERE           Name of the retailers, Name of the retail Shop The contact no. of the retailer Availability of pack sizes in chilled & worm form in the retail shop Which is the most sold product? Which is the most sold pack size? Which company¶s supply is good? Which company¶s margin is good? Which company runs most schemes? Any idea or command or recommendations from retailers.

Table for Collecting Data
. Serial No Name Name of of Retail Retailer shop Phone Availability Most no sold Chilled Warm produc t Most sold pet size Good Good More supply margin Sche me Sugge stions or idea

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References 
Marketing Management : 13 Edition, Pearson Education, by Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileswar Jha.  Quantitative Methods for Business: 10 Edition, Cengage Learning. by David R. Anderson, Dennis J. Sweeney, Thomas A. Williams.  Operation Management for Competitive Advantage: 11 Edition, Tata
th th th

McGraw Hill.by
R. B Chase, F Robert Jacobs, Nicholas J Aquilano, Nitin K Agarwal.  Sales and Channel Management by Krishna K Havaldar & Vasant M Cavale 

Research Methodology by
C.R Kothari 

http://economictimes.indiatimes.com/articleshow/2856202.cms (1)  http://logistics.about.com/od/strategicsupplychain/a/Forecasting.htm (2)  http://www.thehindubusinessline.com/2010/04/30/stories/2010043053122000.htm (3)  http://logistics.about.com/od/tacticalsupplychain/a/public_warehousing.htm 

http://sbinfocanada.about.com/od/cashflowmgt/a/salesforecast.htm  www.thecoca-colacompany.com 

www.coca-colaindia.com

DCSMAT Business School

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