HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED

AN INTERNSHIP REPORT ON

“ANALYSIS OF RETAILER’S BEHAVIOUR TOWARDS COCO-COLA PRODUCT”
SUBMITED TOWARDS PARTIAL FULFILMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT (RETAIL & MARKETING)

SUBMITTED BYGAURAB KUMAR PGDM-R&M (2011-13) ENROLMENT NO-1102010

FACULTY GUIDE MR. P. MAHESH
ASST PROFESSOR

INSTITUE OF PUBLIC ENTERPRISE HYDERABAD i

INDUSTRY GUIDE MR. RITESH JHA SALES &DISTRIBUTION HINDUSTAN COCOCOLA BEVERAGES PVT LIMITED

ACKNOWLEDGEMENT

I would like to thank Dr. P.NARESH KUMAR zonal head-human resources (AP) & D.HARIKA SREE (HR), Coca-Cola India, without whom an internship with, Hindustan Coca-Cola Beverages Private Limited (HCCBPL) would not have been possible. I am grateful to him for having taken time off his busy schedule and spoken to the concerned person to get me this internship. I express my gratitude to the Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for having given me an opportunity to work with them and make the best out of my internship. I thank my trainers, Mr. shankar and Mr. ritesh jha for having trained me and constantly guided and supported me throughout the training period. My heartfelt gratitude also goes out to the staff and employees at HCCBPL for having co-operated with me and guided me throughout the one and a half months of my internship period. I thank my school, institute of public enterprise Academy of Management Studies for having given me this opportunity to put to practice, the theoretical knowledge that I imparted from the program. I thank course coordinators; Dr.v.srikanth and internship guide Mr. P.mahesh for having guided and supported me through the course of the internship. I take this opportunity to thank my parents and friends who have been with me and offered emotional strength and moral support.

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1. EXECUTIVE SUMMARY

C

oca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world‟s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and

syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, Distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob‟s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveals its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its reentry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. The main objective of this study lies in understanding the organization and studying and understanding the retailer‟s perception and opinion about the Coca-Cola Company. An outlets sampling involving 125 retail outlet owners was conducted in a span of 48 days across Hyderabad. To study the behavior of retailers towards coca cola company and their requirements from company and analyze the reasons for willingness to sell Coca-Cola product brands .To find the reasons for losing the market shares in Hyderabad, Study the distribution network of Coco cola and retailer satisfaction level. The methodology used in studying and understanding the perceived views of retailer‟s towards the Coca-Cola Company was „SAMPLING‟. The findings of the activity have been drawn out inform of graphs and suggestions have been offered there from.

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TABLE OF CONTENT

CONTENTS
CHAPTER -I INTRODUCTION .............................................................................................. 1 1.1 INTRODUCTION TO COLD DRINK SECTOR ........................................................... 2 1.2 NEED FOR STUDY ........................................................................................................ 2 1.3 OBJECTIVES OF THE STUDY ..................................................................................... 3 1.4 METHODOLOGY .......................................................................................................... 3 1.5LIMITATIONS OF THE STUDY.................................................................................... 4 CHAPTER -II INDUSTRY PROFILE ...................................................................................... 5 2.1 INTRODUCTION TO FMCG ......................................................................................... 6 2.2OVERVIEW – INDIAN FMCG SECTOR ...................................................................... 6 2.3 MAJOR SEGMENTS IN INDIAN FMCG SECTORS................................................... 7 2.4TOP 10 FMCG COMPANIES IN INDIA ........................................................................ 9 2.5 BEVERAGE AND SOFT DRINK INDUSTRY ........................................................... 11 2.6 MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY ....................................... 13 2.7 HIGHLIGHTS OF BEVERAGE AND SOFT DRINK INDUSTRY............................ 14 2.8 THE FUTURE OF BEVERAGE AND SOFT DRINK INDUSTRY ........................... 15 2.9 SWOT ANALYSIS OF BEVERAGE AND SOFT DRINK INDUSTRY .................... 16 2.10 INDUSTRIAL LIFE CYCLE ...................................................................................... 17 2.11 GOVERNMENT POLICIES ....................................................................................... 18 2.12 INNOVATIONS AND TRENDS IN THE BEVERAGE INDUSTRY ...................... 19 CHAPTER –III COMPANY PROFILE .................................................................................. 21 THE COCA-COLA COMPANY ........................................................................................ 22 3.1 HISTORY ...................................................................................................................... 22 3.2 HISTORY OF BOTTLING ........................................................................................... 24 3.3 MANIFESTO FOR GROWTH ..................................................................................... 26 3.4 HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL) ......... 27 3.5 PRODUCTS................................................................................................................... 30 3.6 MISSION ....................................................................................................................... 32 3.7 VISION .......................................................................................................................... 32 3.8 FACTORS OF SUCCESS ............................................................................................. 34 iv

................3........................................ 58 5.................................1......................... 50 5..........................................2 SUGGESTIONS .......... Error! Bookmark not defined.............................................................1.........................................................5 SOLD COCA-COLA PRODUCT EARLIER ...................1 MARKETING....................................................... 61 5.................... 35 3........................3 VISI COOLERS IN STORES ........................................................................................................ 54 5....... 63 5..... 66 5..... 51 5....................1........................................3 PORTER‟S 5 FORCES MODEL .............. 35 3.6 COCA-COLA SERVICE .......................................................................................7 DAILY SALES ......... 40 4.........................................................................................................................4 SALES PROJECTION .....................................................3 DEVELOPING RESARCH PLAN ....................................10 FUTURE PLANS ............................................................................................................. CHAPTER – VI ........................................2 BCG-MATRIX FOR THE PRODUCT LINE OF COCA-COLA .................. 43 4..............................1................................................................................................11 SWOT ANALYSIS ... 47 CHAPTER -V ANALYSIS ..... 71 Beverages-.............................5 TREND ANALYSIS .........2 RETAILER‟S WILLINGNESS TO SELL COCA -COLA......... 57 5................................. 68 5...........1.......................8 MAJOR COMPITATORS IN INDIAN BEVERAGE INDUSTRY ...................9 MILESTONES ACHIEVED ......... 36 CHAPTER-IV THEORETICAL FRAMEWORK OF THE STUDY ......................... 59 5.. 41 4...................1.....8 REASONS FOR BEING A COCA-COLA RETAILER ................................................................1 COMPANY‟S STOCK ......................................................................................................................................................1 SUMMARY .................................................................... 55 5.............................................................................................................................. 75 6.........1.....................................2 MARKETING MIX ....... 56 5.................................................................................................. 77 v ..............................1..................................................................................... 41 4......7 Product Line of Indigenous Competitor PEPSICO ............................... 76 6............. 52 5................... 77 6:3 CONCLUSION ................. 70 5.........................................................................6 PRODUCT PROFILE OF COCA-COLA ..................4 COCA-COLA VISI COOLER REQUIREMENT ............4 DISTRIBUTION CHANNEL IN HYDERABAD ......................................... 53 5...................

.............................................. 46 FIGURE 8: COCA-COLA DISTRIBUTION CHANELS ............... 23 CHART 5: COMPANY STOCK AT RETAILER‟S LEVEL ..................... 67 LIST OF FIGURES FIGURE 1:BEVERAGE INDUSTRY CLASSIFICATION ....... 32 FIGURE 6: SUSTAINABLE GROWTH ................ 29 FIGURE 5: COCA-COLA PRODUCT LINES ................................ 17 Figure 3:PRODUCT LIFE CYCLE OF BEVERAGE INDUSTRY ...................... 11 FIGURE 2: PRODUCT LIFE CYCLE ............................................................ 48 FIGURE 9: BCG MATRIX ...... 64 CHART 14: UNIT CASE VOLUME IN BILLION ......................................................................................................................................................................................................................................................................... 56 CHART 11: COLD DRINK SALE OF OUTLETS ...................................LIST OF CHARTS CHART 1: MARKET SHARE .............................................................................. 59 Figure 10: COCA-COLA BCG MATRIX .......... 54 CHART 9:COCA-COLA PRODUCT SOLD EARLIER............................................. 10 CHART 3:MARKET SHARE OF TOP BEVERAGE INDUSTRY IN INDIA ...................................................................... 13 CHART 4: COCA-COLA OPERATING AREA MARKET SHARES ................................................................ 58 CHART 13: COCA-COLA REVENUE IN BILLION $ .......................... 65 CHART 15: TREND ANALYSIS ........................................................................... 55 CHART 10: COCA-COLA SERVICE ........................................... 10 vi ................................................................................................................................................................................................................... 53 CHART 8: COCA-COLA VISI COOLERS REQUIREMENTS ..... 61 LIST OF TABLES TABLE 1: TOP 10 FMCG COMPANIES IN INDIA .................................................................... 9 CHART 2: MARKET SHARE OF FMCG COMPANIES IN INDIA ....................................... 57 CHART 12: REASON FOR NOT SELLING COCA-COLA COMPANY PRODUCTS ............ 18 FIGURE 4: COCA-COLA BOTTLING PLANTS IN INDIA ......................................................................................... 51 CHART 6: NO OF RETAILER‟S WILLINGNESS TO SALE COCA-COLA PRODUCTS 52 CHART 7: VISI COOLER AVABILITY IN STORES ..................................................................... 33 FIGURE 7: MARKET RESEARCH CLASSIFICATION ........................................................

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CHAPTER -I INTRODUCTION 1 .

it can be divided into two sections i. carbonated and noncarbonated. fake products also account for a good share of the balance. it is facing the cut throat competition because of the availability of a large number of indirect as well as direct competitors. which were not promoting Coca-Cola product and selling competitor brands. distribution.1 INTRODUCTION TO COLD DRINK SECTOR T he Rs 50 billion soft drink industries are growing now at 6 to 7% annually. range also. This project was aimed at finding out the outlets. 2 . It is also requirement for the company to improve their service and product quality for achieving their ultimate goal. employing about 125000 people. mango and apple segments. Marketing is also to convert social needs into profitable opportunities. So this topic provides all the essentials to theoretical knowledge with practical knowledge and to inculcate the efficiency.1. More often it becomes impossible to differentiate between the same flavors of two different brands. To fulfill all the segments of consumers. All these factors together make the situation complicated. 1. when served in plane container. Beverage industry is one of the fast growing industries in India . Single company offers the soft drink to the market in different taste and flavors. advertising etc.e. As far as the soft drink market is concerned. To find the reasons for decrease in the market share of Coca-cola. Industry watchers say.2 NEED FOR STUDY To find the details of outlets which are either not selling Coca-Cola product or selling the products in very less quantity. To study the behavior of retailers towards coca cola products and their requirements from company and analyze the reasons for willingness to sell Coca-Cola product brands. the carbonated drinks that can be further classified into cola. lemon orange. In this industry entire range of flavors are produced by other competitors also. Besides both corresponding brands have the similar price. Marketing includes all the activities like promotion. There are about 110 soft drink producing units (60% being owned by Indian bottlers) in the country. In India Coca-Cola product and Pepsi have a combined market share of around 95% directly or through franchisees Campa cola has a 1% share and the rest is divided among local players.

promotional activities are obtained from the broachers and other records maintained by the company. To find the reasons for losing the market shares in Hyderabad. This questionnaire includes closed ended questions. 1. Secondary data For the secondary data various websites have been of help for collecting necessary information regarding products of Coca-Cola. Sources of Data The data which has been collected for this research is taken from the market in the form of primary and secondary data.3 OBJECTIVES OF THE STUDY The study has been conducted with the f o l l o w i n g objectives 1234To Study the distribution network of Coco cola and retailer satisfaction level. Personal interview is the method in which the related /concerned people are directly interacted and interviewed. Questionnaire A set of 8 questions were designed in order to complete the study. 3 . To find the potential stores for Coca-Cola products.1. For this study a questionnaire was generated and the respondents were interviewed personally. Primary data Data is collected specially for the study currently undertaken. Primary data includes collecting data through a survey specifications. Analyze the reasons for low sales of Coca-Cola product at retailer‟s point.4 METHODOLOGY The project is prepared on the basis of primary and secondary data pertaining to Coca-Cola.

The information given by the outlet owners may be false and biased. 1.5LIMITATIONS OF THE STUDY The following limitations were faced while conducting the study:      The study is limited to selected areas of Hyderabad.Sample To fulfill the objectives of the study the data is collected from 125 outlets who is selling soft drinks from different areas of Hyderabad. Time and financial limitations hindered more respondents from being selected. Lack of retailer‟s interest to answer the questions. of 4 . It was very difficult to make outlets owners understand the significance conducting survey.

CHAPTER -II INDUSTRY PROFILE 5 .

toothpaste. shaving products and detergents. skin care. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries. batteries. in India is low indicating the untapped market potential. and chocolate bars. 2.  The FMCG market is set to treble from US$ 11. 85. soft drinks. India‟s FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities.1 INTRODUCTION TO FMCG P roducts which have a quick turnover. intense competition between the organized and unorganized segments and low operational cost. FMCG products are those that get replaced within a year. 6 .  Availability of key raw materials.000 crore by 2020 (Booz Allen Report).  Fourth largest sector in the economy with a total market size in excess of US$ 13. and relatively low cost are known as Fast Moving Consumer Goods (FMCG). consumer electronics. bulbs.  Strong MNC presence and is characterized by a well-established distribution network. paper products.000 Crores. cosmetics.6 billion in 2003 to US$ 33. hair wash etc. It is currently growing at double digit growth rate and is expected to maintain a high growth rate.2.1 billion. cheaper labor costs and presence across the entire value chain gives India a competitive advantage. packaged food products. The total FMCG market is in excess of Rs.4 billion in 2015.  Penetration level as well as per capita consumption in most product categories like jams. tissue paper. Its principal constituents are Household Care. FMCG may also include pharmaceuticals.2OVERVIEW – INDIAN FMCG SECTOR  FMCG Industry is expected to have a market of 40. as well as other non-durables such as glassware. soap. Personal Care and Food & Beverages. and plastic goods. tooth cleaning products.

 Burgeoning Indian population.  With 200 million people expected to shift to processed and packaged food by 2010. the demand for the household care products is booming. Household care segment is featured by intense competition and high level of penetration. cosmetics etc. In washing powder segment. Gillette India and Godrej. and hair gels. shampoos. The preference is given to detergents in urban area compared to bars. In the branded coconut hair oil market. With the change in life styles. The hair care market can be segmented into hair oils. India needs around US$ 28 billion of investment in the food-processing industries.  Growth is also likely to come from consumer 'upgrading' in the matured product categories. The Indian skin care and cosmetics market is valued at $274 million and is dominated by HUL. HUL is the leader with approx. hair colorants & conditioners. greater product choice and availability. The skin care market is at a primary stage in India. hair care products. people are becoming more alert about personal grooming. followed by Calvin & Kare and Godrej with a market share of 3 7 . The major players in this segment are Hindustan Unilever with a market share of 54 per cent. particularly the middle class and the rural segments. Personal Care Personal care segment includes personal wash products. 38 per cent of market share. growth in rural demand and upgrading to the premium products are the key drivers for future demand growth in major FMCG categories. Sachet makes up to 40 per cent of the total shampoo sale. Marico (with Parachute) and Dabur are the leading players. Colgate Palmolive. Henkel and Proctor & Gamble.3 MAJOR SEGMENTS IN INDIAN FMCG SECTORS Household Care The detergents segment is growing at an annual growth rate of 10 to 11 per cent during the past five years. 2. Swelling disposable incomes of the Indian consumers. presents an opportunity to makers of branded products to convert consumers to branded products. With rapid urbanization. P&G occupies second position with market share of around 23 per cent. increase in disposable incomes. Other major players are Nirma. Again the market is dominated by HUL with around 47 per cent market share. emergence of small pack size and sachets. oral care products.

Sectoral Opportunities There are some under penetrated segments which need to be tapped by companies. the growth potential is huge. Food and Beverages This segment comprises of the food processing industry. More than 50% of the market share is capture by unorganized players highlighting high potential for organized players. Lower price and smaller packs are also likely to drive potential up trading.per cent. Colgate and Dabur are the major players. Dairy Based Products: India is the largest milk producer in the world. Major players in food segment are HUL. Even investment opportunities exist in value-added products like desserts. With a median age of 25 years. In toothpowders market.2% of the GDP of the country. health beverage industry. thus highlighting the huge potential for expansion of this industry.1% in 2020. Leading branded tea players are HUL and Tata Tea.9% in 2005 to 3.000 crores in size and accounts for 2. bread and biscuits. Beverages: Indian tea market is dominated by unorganized players. The oral care market can be segmented into toothpaste. With rise in per capita incomes and awareness of oral hygiene. Packaged Food: Only about 10-12 per cent of output is processed and consumed in packaged form. and toothbrushes. chocolates & confectionery. India‟s share in world consumer spending is set to enlarge from 1. The three largest consumed categories of packaged foods are packed tea. The major share of tea market is dominated by unorganized players. This segment is dominated by Colgate-Palmolive followed by HUL. Indian hot beverage market is a tea dominant market. India has more than 17% of the world‟s population and that half of these people are below the age of 25. Oral Care: The oral care industry. Godrej. yet only around 15 per cent of the milk is processed. especially toothpastes. The industry has tripled in size over the last 10 years and 8 . 30. Mineral Water and ice creams. remains under penetrated in India with penetration rates around 50%. puddings etc. ITC. biscuits and soft drinks. increasing numbers are joining the Indian workforce. toothpowder. The organized liquid milk business is in its infancy and also has large long-term growth potential. Nestle and Amul. The Indian FMCG industry is estimated to be over 1.

has grown at approximately 17% CAGR in the last 5 years. driven by robust macroeconomic conditions. FMCG Roadmap to 2020). rising income levels. TOP GLOBAL BEVERAGE COMPANY MARKET SHARES CHART 1: MARKET SHARE 2. These drivers are expected to continue to favorably impact the industry which is estimated to further triple in size in the next ten years to 4.4TOP 10 FMCG COMPANIES IN INDIA • Hindustan Unilever Ltd • Indian Tobacco Company • Nestle India • GCMMF (Amul) 9 .000 crores by 2020 (Source: CII. increasing urbanization and favorable demographic trends.00.

• Dabur India • Asian Paints • Cadbury India • Britannia Industries • Procter & Gamble Hygiene and Health Care • Marico Industries TABLE 1: TOP 10 FMCG COMPANIES IN INDIA Market share DABUR 4% BRITANNIA 6% NESTLE 8% OTHERS 15% HUL 37% ITC 30% CHART 2: MARKET SHARE OF FMCG COMPANIES IN INDIA 10 .

Brandy. Filling of beverages can be done cold. Sports and Energy drinks. in order to come up with better products to gain more consumers and satisfy the exi 11 . Coffee.Juice based drinks. Non-Alcoholic beverages are further o two types based upon carbon content. Tea. It is an industry. tea . beverages form an important part of the lives of people. drinks are filled into containers.5 BEVERAGE AND SOFT DRINK INDUSTRY A beverage is a drink specifically prepared for human consumption. FIGURE 1: BEVERAGE INDUSTRY CLASSIFICATION The beverage is mainly categorized into two major categories based upon the alcoholic and nonalcoholic nature of the drink.Dairy products like milk. Drinks often consumed include: Water (both flat or carbonated). in which the players constantly innovate. Whisky or Beer. In India. These beverages contain Fruit juices. like the "TetraPak" or others. Soft drinks. ambient and cold-aseptic filling to mention the latest trend of beverage marketing and technology. It may be Wine. hot. Soda. Beverages almost always largely consist of water. like glass or plastic bottles. Commonly. The Alcoholic beverages are based upon the fruit content and grain.Coffee. Colas. Alcoholic beverages like beer or spirits . steel or aluminum cans as well as cardboard supported packages.2.

beverages for kids. high levels of consumption and low levels of consumption.e. It is important to look at the entire beverage market.e. The beverage market has still to achieve greater penetration and also a wider spread of distribution. Four strong strategic elements to increase consumption of the products of the beverage industry in India are:  The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.  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. as a big opportunity. it could be observed that consumers perceive beverages in two different ways i. refreshment. Age wise segmentation i.  Communication should be relevant and trendy so that consumers are able to find an appeal to go out. relaxation. beverages are a luxury and that beverages have to be consumed occasionally.The beverage industry is vast and there various ways of segmenting it.e. non-alcoholic and sports beverages Natural and Synthetic beverages In-home consumption and out of home on premises consumption. The different ways of segmenting it are as follows:     Alcoholic. taste.  Consumer education is a must to bring out benefits of beverage consumption whether in terms of health. If the behavioral patterns of consumers in India are closely noticed. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry. well-being or prestige relevant to the category. it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. purchase and consume. so as to cater the right product to the right person. stimulation. for 12 . for adults and for senior citizens Segmentation based on the amount of consumption i.

3 33. 7.....brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy........... PepsiCo.. Nestlé India... 3. 2... UB Group. 10 TABLE 2: MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY .........6 MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY 1.. Parle bislere ltd..... 13 TABLE 2: MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY MARKET SHARE 28... 9.7 COCA-COLA PEPSICO 13.............. TATA Global Beverages Ltd [TATA Tea].2 PARLE & BISLERE 4th Qtr CHART 3: MARKET SHARE OF TOP BEVERAGE INDUSTRY IN INDIA 13 ... TABLE 1: TOP 10 FMCG COMPANIES IN INDIA ... 5.. 6... Café Coffee Day. 2.. Dabur India Ltd. 4........ 8....8 24.... Red Bull India Pvt Ltd..... Coca-Cola Company...................

Coca-Cola. followed by the energy drinks segment at a CAGR of around 25 per cent in value terms. nectar and 100 per cent juice. Dabur and Godrej are among the leading players in the domestic non-alcoholic beverage circuit. The current market size of energy drinks in India is around Rs 500 crore and it is expected to grow at a CAGR of 25 per cent. The fruit / vegetable juice segment is expected to grow at a CAGR of 30 per cent in value terms. a sign that this market has potential for rapid 14 . But the penetration level of carbonated soft drinks in India is still low compared with other developing markets. The industry is broadly classified into soft drinks and hot beverages. rapid urbanization and rising disposable income are some of the major factors fuelling this growth. Increasing middle-class population. Ltd. Parle Agro Pvt. India is the largest producer of tea with a total turnover of around Rs 8.fruit drinks. Indian consumer now spends a significant proportion of disposable income on food and other essential commodities. accounting for 4 per cent of the world's production. India is the world's fifth largest producer of coffee. The fruit-based beverage market is divided into three segments .000 crore and is growing at 35-40 per cent annually. while the value of the fruit drink segment is estimated at about Rs 1.200 crore and the energy drinks market is worth about Rs 600 crore. The non-alcoholic drinks market has witnessed rapid growth over the past few years in India.800 crore. Carbonated or aerated drinks account for about 30 per cent of the total non-alcoholic beverages market in the country. The carbonated drinks market is close to Rs 6. Within the hot beverages category.500 crore. Non-alcoholic beverages Soft drinks constitute the third-largest packaged food segment in India after packaged tea and packaged biscuits. Several other factors like demographic and macro economic conditions have also given fillip to expenditure on food and beverages in the country. The fruit-based beverage market stands at Rs 5. The size of the segment is currently estimated at about Rs 1.7 HIGHLIGHTS OF BEVERAGE AND SOFT DRINK INDUSTRY The Indian beverage market has observed strong growth over the past few years. The functional drinks segment is dominated by energy drinks. growing at a rate of 1-2 per cent annually.2. highlights a certain study.000 crore and is growing by 10-12 per cent annually. PepsiCo. Economic liberalization and rising income of middle-class population have had a positive impact on consumer spending and consumption in both rural and urban areas.

2. healthconscious consumer segment .  All in all.5 per cent.8 THE FUTURE OF BEVERAGE AND SOFT DRINK INDUSTRY  Beverage Industry is projected to have overall growth between 8% -8. The availability of fresh / pasteurized and long life / UHT milk is increasing nationwide.7 litres in 2012. only 13 per cent of the milk is processed.  India Alcoholic Drinks Market to Grow Over 9% CAGR during 2009-2013.  Fruit/vegetable juice market will grow at a CAGR of around 30 per cent in value terms during 2009-2012. India is the largest milk producer in the world.6 litres in 2000 to 8. Demand for milk and milk-based beverages are also rising. dairy products are a well-established part of the national diet in India. With an annual output of more than 100 million tonnes. the organized sector is growing rapidly.5 %. Demand for packaged milk and milk products will increase because the growing middle-class.especially in towns and cities . annual per capita consumption of packaged beverages is supposed to triple from 2. sales of bottled water are set to increase rapidly over the next five years.is adopting Western lifestyles and consequently buying more and more processed and packaged food. Currently. The unorganized sector distributes 85 per cent. The market for juice will also grow dramatically in coming years With an annual growth rate of almost 15 per cent. Milk Unlike most other Asian countries.  The sectors which are projected to achieve excellent growth of 20% from wine.  The India Alcoholic Drinks Market Is Expected To Reach The 3 Billion Liter Mark By 2012.  The energy drinks segment which will grow at a CAGR of around 29 per cent during the same period. The market size for bottled water in India had an estimated value of US$570 million in 2008.  Indian non-alcoholic drinks market is expected to at a CAGR of around 15% during 2010-2013.growth. 15 . however. With annual growth of 14.

9 SWOT ANALYSIS OF BEVERAGE AND SOFT DRINK INDUSTRY It is a strategic planning method used to evaluate the Strengths.  STRENGTH     Renewal and investment Innovation and Technological development Experience in searching for new markets. Weaknesses. and Threats involved in the project. It involves specifying the objective of the project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. niches and partners Availability of key raw materials. Opportunities. cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The estimated INR 340 bn Indian liquor industry is expected to maintain its CAGR of 15%. 2.  WEAKNESS     Old technologies and poor work organization Insufficient pace of creation and implementation of innovations Insufficiently effective activities of small and medium-sized businesses Change in household consumption patterns  OPPORTUNITIES      Presence of a favorable market Market globalization Foreign direct investment promoting knowledge and developing export channels Transfer of production to the countries with smaller labor costs Well established distribution network  THREATS   Unfavorable market trends in energy resources Increasing competition among exporters and decreasing dependency on one market 16 .

  

Intense competition between the organized and unorganized segments and low operational cost. Water scarcity in India Increasing of Goods and Service tax in 2013-2014.

2.10 INDUSTRIAL LIFE CYCLE
To be able to market its product properly, a business must be aware of the product life cycle of its product. The standard product life cycle tends to have five phases.  DEVELOPMENT  INTRODUCTION  GROWTH  MATURITY  DECLINE In America carbonated soft drink market is currently in the maturity stage, which is evidenced primarily by the fact that they have a large loyal group of stable customers but in the developing countries like carbonated soft drinks are in growth stage, which is evidenced by looking at the per head consumption of 6 bottles in India is lagging behind the us astounding 700 bottles per head consumption.

FIGURE 2: PRODUCT LIFE CYCLE 17

FIGURE 3: PRODUCT LIFE CYCLE OF BEVERAGE INDUSTRY

2.11 GOVERNMENT POLICIES
Governmental Policy Indian Government has enacted policies aimed at attaining international Competitiveness through lifting of the quantitative restrictions, reducing excise duties, automatic foreign in-vestment and food laws resulting in an environment that fosters growth. 100 per cent ex-port oriented units can be set up by government approval and use of foreign brand names is now freely permitted. India is second largest Country in terms of Population growth and increase in population has a direct relation to FMCG Products.

FMCG sector central and state initiatives Recently Government has announced a cut of 4 per cent in excise duty to fight with the slowdown of the Economy. This announcement has a positive impact on the industry. But the benefit from the 4 per cent reduction in excise duty is not likely to be uniform across FMCG 18

categories or players. The changes in excise duty do not impact cigarettes (ITC, Godfrey Phillips), biscuits (Britannia Industries, ITC) or ready-to-eat foods, as these products are either subject to specific duty or are exempt from excise. Even players with manufacturing facilities located mainly in tax-free zones will also not see material excise duty savings. Only large FMCG-makers may be the key ones to bet and gain on excise cut. Foreign Direct Investment (FDI) Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector except malted food, alcoholic beverages and those reserved for small scale industries (SSI). There is a continuous growth in net FDI Inflow. There is an increase of about150 per cent in Net Inflow for Vegetable Oils & Vanaspati for the year 2011.

2.12 INNOVATIONS AND TRENDS IN THE BEVERAGE INDUSTRY
Coffee has been a big mover over the last year, particularly in the Horace sector, with caramel and vanilla syrups, nuts and Fair-trade products all adding to consumer loyalty and profit margins. This is likely to transmute further into ready-to-drink products in cans, bottles and cartons - with indulgent, creamy textures running alongside an increase in cappuccino and espresso pods for home use

 Natural energy looks like being a growing trend in 2012. Consumer awareness of ingredients is now at its highest level ever and 'natural' is a strong lever when it comes to beverage purchase. There is greater awareness, too, of terms such as 'antioxidant' and 'contains vitamin C', with consumers looking for dual functionality from their drinks. Added value in terms of being 'more than just hydration' is popular when it comesto meal replacement drinks such as smoothies.  Carbonated soft drinks have seen resurgence in popularity over the last year as 'the affordable treat' for many families cutting back in difficult economic times. Diet and zero CDSes are now selling on 50:50 ratios, with full sugar carbonates in developed regions.

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 Citrus-flavored juice-enhanced drinks have found a good following during the past year, with some more exotic juice blends finding new favors, such as lemon and acerola cherry, coconut and pineapple and grapefruit and elderflower, to name just a few.  Clear beverages are increasingly popular, with consumers seeing them as 'hydrating' and natural. More sophisticated alternatives for non-drivers and those watching their weight are appearing on the pub and club scene.  Ready-to-drink teas are still growing in popularity across the globe, especially in 50 clformats.  Better quality drinks for children. Half-juice and water drinks are easier to drink and win parental approval.  Packaging is improving its sustainable credentials in leaps and bounds, with biopolymers such as Coca-Cola's Plant Bottle concept, increasing demand and use of PET and brown paper cartons, and recyclable labels emphasizing end-of-life planet awareness.  Music festivals are now recognized as an important forum for beverages, not only for sampling, sales and marketing of drinks, but also for education regarding recycling on a grand scale.

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CHAPTER –III COMPANY PROFILE 21 .

Mr. an entrepreneur from Atlanta. Carbonated water was teamed with the new syrup. 22 . Candler. a pharmacist. was registered in the United States Patent Office on January 31. For his efforts. John Pemberton‟s former partner Frank Robinson and two other associates. Pemberton sold 25 gallons of syrup. a theme that continues to echo today wherever Coca-Cola is enjoyed. Pemberton never realized the potential of the beverage he created. He suggested that “the two Cs would look well in advertising. Mr. shipped in bright red wooden kegs.96 on advertising. With his brother. Dr. Pemberton‟s partner and book-keeper. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. He first “distributed” the product by carrying it in a jug down the street to Jacob‟s Pharmacy and customers bought the drink for five cents at the soda fountain.” The first newspaper ad for CocaCola soon appeared in The Atlanta Journal. sold his remaining interest in Coca-Cola to Asa G. whether by accident or otherwise. producing a drink that was proclaimed “delicious and refreshing”. Dr. He gradually sold portions of his business to various partners and.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings. Robinson. 1893. Dr. Candler. Red has been a distinctive color associated with the soft drink ever since. Pemberton grossed $50 and spent $73. sales of Coca-Cola averaged nine drinks per day. By the year 1891.THE COCA-COLA COMPANY 3. suggested the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. just prior to his death in 1888. his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. inviting thirsty citizens to try “the new and popular soda fountain drink. The first year.1 HISTORY C oca-Cola was first introduced by John Syth Pemberton. in the year 1886 in Atlanta. Georgia when he concocted caramel-colored syrup in a threelegged brass kettle in his backyard. with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment. Dr. Within four years. John S. The trademark “Coca Cola. Frank M.Candler formed a Georgia corporation named the Coca-Cola Company. By the year 1886.” used in the marketplace since 1886.

The operating groups: North America group Latin America group Europe & Eurasia group Asia pacific group Africa and Middle east group Market shares 30% 26% 21% 16% 7% OPERATING AREA M. making Coca-Cola one of the most recognized and valued brands around the world. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. Others were opened in Chicago. In the year 1919. the Company quickly outgrew its facilities. the first syrup manufacturing plant outside Atlanta was opened in Dallas. Mr. Candler announced in his annual report to share owners that “Coca-Cola is now drunk in every state and territory in the United States. California. the following year. Robert W.SHARES 7 16 30 NORTH AMERICA GROUP LATIN AMERICA GROUP 21 26 EUROPE & EURASIA GROUP ASIA PACIFIC GROUP AFRICA & MIDDLE EAST GROUP CHART 4: COCA-COLA OPERATING AREA MARKET SHARES 23 .The business continued to grow. the Coca-Cola Company was sold to a group of investors for $25 million. Texas. Illinois. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success. three years after The Coca-Cola Company‟s incorporation.” As demand for Coca-Cola increased. In 1895. and in 1894. and Los Angeles.

using a common glass bottle called a Hutchinson. Mississippi. Their efforts were boosted by major progress in bottling technology. Tennessee believed they could build a business around bottling Coca-Cola. The Contour Bottle became one of the few packages ever granted trademark status by the U. Patent Office. Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. He began bottling Coca-Cola to sell. Joseph A. it is one of the most recognized icons in the world.S. Thomas and Joseph B. soon joined their venture. brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner. Early growth was impressive.3. most of them family-owned businesses. nearly 400 Coca-Cola bottling plants were operating. which improved efficiency and product quality. 24 . Some were open only during hot-weather months when demand was high. John T. One of his nephews already had urged that Coca-Cola be bottled. In a meeting with Candler. Benjamin F. By 1909. but Candler focused on fountain sales. Today. Biedenharn. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. Candler thanked him but took no action. A third Chattanooga lawyer. Lupton. YEAR WISE HISTORY OF BOTTLING: Year 1894: A modest start for a bold idea In a candy store in Vicksburg. Year 1916: Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. Biedenharn sent a case to Asa Griggs Candler. who owned the Company. A design from the Root Glass Company of Terre Haute. but it was only when a strong bottling system developed that CocaCola became the world-famous brand it is today. Indiana won enthusiastic approval. Year 1899: The first bottling agreement Two young attorneys from Chattanooga.2 HISTORY OF BOTTLING Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar.

becoming generally available in 1960.5 ounce Contour Bottle. Woodruff. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 64 bottling plants were set up around the world to supply the troops.S. permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. In response. By the end of the 1920s. more than 1. 25 .000 Coca-Cola bottlers were operating in the U. In the 1940s: Post-war growth During the war. Their ideas and zeal fueled steady growth. Such customers required a new approach. Belgium. many small and medium-size bottlers consolidated to better serve giant international customers. followed by PowerAde and Fruitopia in the 1990s. Honduras. or larger servings including 10. bottle sales of Coca-Cola exceeded fountain sales. Guatemala. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. The 1980s brought diet Coke and Cherry Coke. In the 1970s and 1980s: Consolidation to serve customers Advancement in technology led to global economy. Pibb and Mello Yello were added in the 1970s. Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Cans were also introduced. open-top metal coolers became the forerunners of automated vending machines. the Company began a major push to establish bottling operations outside the U. In the 1920s and 1930s: International expansion Led by Robert W. Many of these war-time plants were later converted to civilian use.In the 1920s: Bottling overtakes fountain sales As the 1920s dawned. By the time World War II began. Italy and South Africa. Fanta. Today scores of other brands are offered to meet consumer preferences in local markets around the world. In the 1960s: Introduction of new brands Sprite. Six-bottle cartons were a huge hit starting in 1923. Coca-Cola was being bottled in 44 countries. 12 and 26 ounce versions.S. consumers had choices of Coca-Cola package size and type-the traditional 6. Plants were opened in France. retail customers of The Coca-Cola Company merged and evolved into international mega chains. chief executive officer and chairman of the Board. A few years later. In the 1950s: Packaging innovations For the first time. Mexico.

create.. delight QUALITY: What we do.. As was true a century ago. and spirit To Inspire Moments of Optimism. Through our brands and our actions To Create Value and Make a Difference.5 billion was committed to new bottling facilities in Africa.. Everywhere we engage. 3. more than $1.3 MANIFESTO FOR GROWTH VALUES: Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets.. 26 ..In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. the Company invested heavily to build plants in Eastern Europe. it‟s up to me COLLABORATION: Leverage collective genius INNOVATION: Seek. In body. we do well MISSION To Refresh the World. VISION FOR SUSTAINABLE GROWTH PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities. As the century closed. strong locally based relationships between Coca-Cola bottlers. customers and communities are the foundation on which the entire business grows. the values being: LEADERSHIP: The courage to shape a better future PASSION: Committed in heart and mind INTEGRITY: Be real ACCOUNTABILITY: If it is to be.. 21st Century: Coca-Cola today The Coca-Cola bottling system grew up with roots deeply planted in local communities. After the fall of the Berlin Wall. imagine. mind.

over 60 manufacturing locations. In the new liberalized and deregulated environment in 1993.Thus these products became a part of range of products of the CocaCola Company. With access to 53 of Parle‟s plants and a well set bottling network. as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. Coca-Cola made its re-entry into India through its 100% owned subsidiary (HCCBPL). 27 Company Owned Bottling Operations (COBO).4 HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL) ABOUT THE COMPANY Coca-Cola was the leading soft drink brand in India until 1977. Maaza.PEOPLE: Being a great place to work where people are inspired to be the best they can be. 500 managers. One such major commitment was that. when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. 3. Coca-Cola is made up of 7000 local employees. this was based on numerous commitments and stipulations which the Company agreed to implement in due course. which were floated by Parle. PARTNERS: Nurturing a winning network of partners and building Mutual loyalty. Goldspot. The Coca-Cola Company acquired soft drink brands like Thumps Up.17 Franchisee Owned Bottling 27 .the Indian bottling arm of the CocaCola Company. an excellent base for rapid introduction of the Company‟s International brands was formed. CocaCola re-entered the Indian market on 26th October 1993 after a gap of 16 years. with its launch in Agra. the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002. PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples‟ Desires and needs. PLANET: Being a responsible global citizen that makes a difference. However. Limca.

The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution. FOBO & CONTRACT PACKAGING IN INDIA 28 . with help of technology and skills within the Company.5 per bottle. act local”. the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. with punch lines like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. is the mantra that Coca-Cola follows. they have a long standing belief that everyone who touches their business should benefit. This new market accounted for over 80% of India‟s new Coca-Cola drinkers. At Coca-Cola. from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.000 retail outlets and 8000 distributors. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003. recognition and loyalty worldwide. LOCATIONS OF COBO. It also has a supporting distribution network consisting of 700.“Think local. enabling the Company to achieve success. Almost all goods and services required to cater to the Indian market are made locally. thereby inducing them to uphold these values.

the beverage industry requires little capital. and produces maximum revenue returns. 29 . In fact. the management believes that in increasing the shareholders value it requires consistent growth in financial results complemented by effective use of the cash flow. The management believes in non capital-intensive areas. The returns from the foreign market are tapped to the most. The corporate objectives are to increase the shareowners value.FIGURE 4: COCA-COLA BOTTLING PLANTS IN INDIA Management philosophy The major concept of the management philosophy is to retain in the beverage industry and not diversify in to other areas.

The Company is always looking to innovate and come up with. fruit juices and bottled mineral water. The Coca-Cola Company has a wide range of products out of which the following products are marketed by HCCBPL:               Coca-Cola Diet Coke Thumps Up Sprite Fanta Limca Maaza Maaza Milky Delite Minute Maid Pulpy Orange Minute Maid Nimbu Fresh Burn Kinley Water Kinley Soda Schweppes 30 . The brand The Coca-Cola consistently ranks first in the world‟s most valuable brands. As far as the branch management concerned. either complete new products or new ways to bottle or pack the existing drinks. authority and the accountability as close to the customers and consumer possible. we find that Coca-Cola ranks itself as third only after Microsoft and Louis volition.Marketing area Here the management is committed to superior market place execution. 3. This is achieved by decentralized operating structure that places the responsibilities.5 PRODUCTS  The Coca-Cola Company offers a wide range of products to the customers including beverages. The brand value is about $39billion. This is heritage of the company.

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To continue to thrive as a business over the next ten years and beyond. To inspire moments of optimism and happiness.kinley. understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. minute maid. We must get ready for 32 .6 MISSION Coca-Cola exits to create value for our shareowners on a long term basis by building a business that enhances the Coca-Cola company‟s trademarks. both carbonated . 3. thumsup.. As the world‟s largest beverage company. 3.. Coca-Cola succeed or fail based on our ability ti perform as worthy stewards of seven of several key assets like. sprite. Kinley soda.. fanta.7 VISION The world is changing all around us. This is also is Coca-Cola ultimate commitment. limca. o Replenishment: water and sports drinks.. we must look ahead. o Health and nutrition: juice and milks-bibo. maaza. Fruitopia. o o o To refresh the world. our bottling partners and our customers. To create value and make a difference. In creating value.FIGURE 5: COCA-COLA PRODUCT LINES Four basic segments o Refreshment: Csds: Coca-Cola. Georgia gold.. o Rejuvenation: ready to drink tea & coffee-Nestea.. Coca-Cola refresh the world Coca-Cola non –alcoholic superior soft drink. and non-carbonated. and profitable non alcoholic beverage systems that create value for our company.

lean and fast-moving organization FIGURE 6: SUSTAINABLE GROWTH 33 . Our vision serves as the framework for our Road map and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable. It creates a long-term destination for our business and provides us with a "Road map" for winning together with our bottling partners. quality growth.tomorrow today. That's what our 2020 Vision is all about. enduring value  Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities  Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities  Productivity: Be a highly effective.   People: Be a great place to work where people are inspired to be the best they can be Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people‟s desires and needs  Partners: Nurture a winning network of customers and suppliers. together we create mutual.

       Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be. observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious Work Smart      Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently Act like Owners    Be accountable for our actions and in actions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems 34 . it‟s up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do. we do well Focus on the Market      Focus on needs of our consumers.8 FACTORS OF SUCCESS Our Winning Culture Our Winning Culture defines the attitudes and behaviors that will be required of us to make Our 2020 Vision a reality. Live Our Values Our values serve as a compass for our actions and describe how we behave in the world.3. customers and franchise partners Get out into the market and listen.

Third year in a row.10 FUTURE PLANS Coca-Cola is planning to invest $5 billion dollars in the India business between now and 2020. including setting up a new plant in the country. Learn from our outcomes -. passion. 35 . Coca-Cola India Wins Best Exporter Award For Roasted Coffee Beans Coca-Cola India Receives Global Golden Peacock Award For Corporate Social Responsibility. Coca-Cola India Bags the Prestigious Golden Peacock Award for CSR. In line with its plan to double revenue globally by 2020. he said without disclosing details. Andhra Pradesh Government Confers 'Best Management Award' To Hindustan CocaCola Beverages Pvt Limited.what worked and what didn‟t Be the Brand  Inspire creativity. This represents an increase of $3 billion beyond what we had previously committed to investing in this market”. adding new bottling plants.9 MILESTONES ACHIEVED       Stakeholders recognize Coca-Cola India's efforts towards water stewardship and Sustainability the BU celebrates World Water Day. Limca Book of Records Launches Music Special 2012 Edition. enhancing back-end chain infrastructure as well as marketing by the company. The investments would be made on increasing bottling lines. 3. Coca Cola had announced in November last year that the company along with its partners would invest $2 billion in India over the next five years to enhance its business operations. optimism and fun 3.

Weaknesses. STRENGTHS  DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. Strong brand names like Sprite. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. WEAKNESSES 36 . Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. It involves specifying the objective of the project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.45billion.3. and Threats involved in the project. Limca. The distribution fleet includes different modes of distribution. Opportunities. 700.  LOW COST OF OPERATIONS: The production. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Inter brand. It was estimated that the Coca-Cola brand was worth $70. from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.11 SWOT ANALYSIS It is a strategic planning method used to evaluate the Strengths. The red and white CocaCola is one of the very few things that are recognized by people all over the world.000 retail outlets and 8000 distributors. People all around the world recognize the brands marketed by the Company.  STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. Fanta. It has a distribution network consisting of a number of efficient salesmen. marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.

are apprehensive about Coca-Cola products from India. DDT. the Company finds it very difficult to invest in technological advancements and achieve economies of scale.  EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad. like Maaza etc and export them to foreign nations.000 new outlets in the first two months of this year. the Centre for Science and Environment (CSE). contained toxins including lindane. In 2003. Coca-Cola amounts for 74% of the beverage market. OPPORTUNITIES  LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. including multinational giants PepsiCo and Coca-Cola. The company appointed 50. as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3.500 new villages. there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola.LOW EXPORT LEVELS: The brands produced by the company are brands produced worldwide thereby making the export levels very low.pesticides that can contribute. Therefore. said aerated waters produced by soft drinks manufacturers in India. Malathion and chlorpyrifos. chiefly led by Limca. a non-governmental organization in New Delhi.  SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company‟s operations are carried out on a small scale and due to Government restrictions and „red-tapism‟. In Bangalore.  to cancer and a breakdown of the immune system. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable 37 . people abroad. In India. Other products account for 16 per cent market share. this includes a 42 per cent share of the cola market. Coca-Cola India claims a 58 per cent share of the soft drinks market.

acute dependence on the vagaries of the monsoon.amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.  HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. the license poses a problem. it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. power problems. When a license is issued. and inaccessibility to conventional advertising media. large number of daily wage earners. the production capacity is mentioned on the license and every time the production capacity needs to be increased.  TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. Unlike olden times. All these problems might lead to a slowdown in the demand for the company‟s products. THREATS  IMPORTS: As India is developing at a fast pace. this can limit the growth of the Company and pose problems. the per capita income has increased over the years and a majority of the people are educated. the export levels have gone high.  SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income. poor roads. The beverage industry can take advantage of such a situation and enhance their sales. Therefore. people now have the power of buying goods of their choice without having to worry much about the flow of their income. 38 . People understand trade to a large extent and the demand for foreign goods has increased over the years. Renewing or updating a license every now and then is difficult. If consumers shift onto imported beverages rather than have beverages manufactured within the country. seasonal consumption linked to harvests and festivals and special occasions.

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CHAPTER-IV THEORETICAL FRAMEWORK OF THE STUDY 40 .

It generates the strategy that underlies sales techniques. and relationships either short term or long term with a company or brand. price. A different concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value. Marketing is used to identify the customer. Marketing strategy A Marketing Strategy consists of selecting a segment of the market as the company‟s target market and designing the proper “mix” of the product/service. For business to consumer marketing. and business developments. and society at large. clients. business communication. solutions. communicating.1 MARKETING M arketing is the activity. With the customer as the focus of its activities. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying.2 MARKETING MIX It is a set of four decisions which need to be taken before launching any new product. set of institutions. For business to business marketing it is creating value. it is "the process by which companies create value for customers and build strong customer relationships. partners. These four variables help the firm in 41 . The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. and keep the customer. in order to capture value from customers in return". and distribution system to meet the wants and needs of the consumers within the target market.4. and exchanging offerings that have value for customers. promotion. marketing is defined as "the management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage. marketing management is one of the major components of business management. delivering. These variables are also known as the 4 P’s of marketing. 4. satisfy the customer. In this context. and processes for creating. anticipating and satisfying customer requirements profitably.

if you want to start a business. one of which is implemented for the marketing mix. If a product is a consumer product. Thus based on these factors there are several pricing strategies. Major consideration in pricing is the costing of the product. These variables are     Product Price Place Promotion As mentioned before. you need a team who interacts with businesses and makes the product available to them. Pricing is used for sales promotions in the form of trade discounts. Therefore Product is also the first variable in the marketing mix. any price fluctuations in the market. then the pricing of a product has to be increased and decreased accordingly. 4) Promotions – Promotions in the marketing mix includes the complete integrated marketing communications which in turn includes ATL and BTL advertising as well as sales 42 . it will be available only in select stores. 3) Place – Place refers to the distribution channel of a product. Along with the above factors. the advertising and marketing expenses. as well as any STP decisions taken by a firm. pricing also affects the targeting and positioning of a product. there are also other things which have to be taken in consideration when deciding on a pricing strategy. Similarly. Product decisions are the first decisions you need to take before making any marketing plan. distribution costs etc. it needs to be available as far and wide as possible. if the product is a Premium consumer product. On the other hand. if all these variables change. A product can be divided into three parts. Thus the pricing has to be such that it can bear the brunt of changes for a certain period of time. The core product. The variables are as follows 1) Product – The first thing you need. However. Many of these factors can change separately. Similarly. Thus the place where the product is distributed depends on the product and pricing decisions.making strategic decisions necessary for the smooth running of any organization. is a product. Competition can be the best example. the augmented product and the tertiary product. 2) Pricing – Pricing of a product depends on a lot of different variables and hence it is constantly updated. if the product is a business product. the marketing mix is characterized by four different but equally important variables. However. These variables are never constant and may be changed over time. a change in one of the variables may cause a change in all the other variables as well.

It is the pursuit of truth with the help of study observation. This research involved a 43 . Promotions are dependent a lot on the product and pricing decision. it needs brand / product awareness promotions. The above four P‟s of marketing give an overall look at the product marketing mix. and lesser distribution points might be needed. One can also define research as a scientific & systematic search for pertinent information of a specific topic. which are discussed subsequently. and the profitability might support you in launching even more products. Finally. comparison & experiment. whereas if the product is already existing then it will need brand recall promotions. you might have to increase distribution points. Promotions also decide the segmentation targeting and positioning of the product. 4. RESEARCH METHODOLOGY Research in common refers to a search of knowledge. demand of the product might lessen. If product is a service then there are 3 further P‟s taken into consideration namely – people. On the other hand.promotions. physical evidence and process. Promotions are considered as marketing expenses and the same needs to be taken in consideration while deciding the costing of the product. The research consists of following steps. However. price and place. you might get to increase the price because of the rising brand equity of the product. Thus as we see from the above explanations. If the promotions are effective. What is the budget for marketing and advertising? What stage is the product in? If the product is completely new in the market. By increasing the pricing of the product. The right kind of promotions affect all the other three variables – the product. all the four variables of marketing mix are inter related and affect each other. the overall marketing mix can result in your customer base asking for some improvement in the product. thereby increasing need of better pricing and more promotions.3 DEVELOPING RESARCH PLAN After deciding the objective of marketing research the next step is deciding Research plan for gathering effective information related to this research project. the budget required for extensive promotions is also high. the product USP can be such that maximum concentration is on creating brand awareness. and the same can be launched as the upgraded product.

and public to the marketer through information – information used to identify and define marketing opportunities and problems. gathering. which was descriptive as well as explorative in nature it basically aims at gathering data about how the coca-cola scheme playing in the mind of shopkeepers & consumer Marketing Research: Marketing research is the process of designing. refine. collection. and evaluate marketing actions. analysis & reporting of data & findings relevant to a specific marketing situation facing the company.study. and reporting information that may be used to solve a specific marketing problem. (Burns and Bush Definition) Marketing research: the function that links the consumer. (AMA Definition) Marketing research is the systematic design. generate. and improve the understanding of marketing as a process. analyzing. customer. monitor marketing performance. Steps in the marketing research 44 .(Philip kotler).

45 .

Research Design A research design is a framework or blueprint for conducting the marketing research project. A Classification of Marketing Research Designs FIGURE 7: MARKET RESEARCH CLASSIFICATION 46 . It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems.

47 . Sampling size: 125.METHODS OF DATA COLLECTION THERE ARE TWO TYPES OF DATA 1. A. office manuals. Sampling unit: The retailer of Grocery shop. restaurant and school and colleges student was selected from different places of Hyderabad. For this study a questionnaire was design and the respondents were interviewed personally. B. 2) Secondary data collection: For secondary data I have referred to several journals. Primary data can be collected by Three methods. general store. 4. a) Observation b) Experiment c) Surveys But here. Personal interview is the method in which the related /concerned people are directly interacted and interviewed. The retailers are directly contacted and interviewed at their retail counter and with their customer also. Sampling method: Data were collected by retailer survey. betel shop. Sampling plan: sampling plan consists of I. Area of surveys: The survey was conducted in different location of Hyderabad city.4 DISTRIBUTION CHANNEL IN HYDERABAD At present. Secondary data 1. Primary data 2. Primary data collection: Data is collected specially for the study currently undertaken. Sampling procedure: Simple random sampling procedure was followed. Research instrument: Printed Questionnaire was used as the research instrument to collect the required information. II. only surveys method of data collection is preferred which is very suitable to reach the researcher motto. IV. III. research websites and other sources of information to make this report more authentic and useful. the Coca-Cola‟s products are produced in the plant (Miypur & Moula ali) and it‟s transferred to various distributor throughout the according to demand and company target.

FIGURE 8: COCA-COLA DISTRIBUTION CHANELS 48 .

Necessary Availability . departmental stores. These outlets offer multiple opportunities to effect sales as people usually order something to drink along with food.Dhabas . tea shops. sweet shops. and confectionary.CHANNEL (A) GROCERY STORE Grocery (customer profile): Store stocking a variety of regular uses household items. 49 . mint. travel channel etc. proVISIon stores etc.Restaurants . It includes all kirana stores. It includes . The channels provide an opportunity for penetration as it propels home consumption.Cafes (C) EATING & DRINKING CHANNEL 2 It includes bakery. (D) CONVENIENCE CHANNEL Pan/bidi shops (customer profile) : This segment includes PAN BIDDI outlets that Stock cigarettes.2 liter and 300ml (B) EATING & DRINKING CHANNEL 1 Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller dhabas. soft drink shops and juice centre.Bars and Pubs . They may also sell 600ml. Small outlets that mainly sell 200ml or 300ml bottles. supermarkets. juice. It covers STD/ISD phone booths.

V ANALYSIS 50 .CHAPTER .

5.1.1 COMPANY’S STOCK NAME COMPANY COCA-COLA PEPSI BOTH TOTAL 34 66 25 125 27% 53% 20% 100% OF THE NO OF OUTLETS IN PERCENTAGE NO OF OUTLETS 70 60 50 40 30 20 10 0 COCO-COLA PEPSI BOTH 66 34 25 NO OF OUTLETS CHART 5: COMPANY STOCK AT RETAILER’S LEVEL INTERPRETATION: From the given table.1COMPARATIVE ANALYSIS OF COCA-COLA 5. 34 outlets have Coca-Cola product stock. 66 have Pepsi stock and 14 have both. 51 .

73% outlets are ready to sale Coca-Cola products and 26% are don‟t want to sell Coca-Cola products. 52 .5.1.2 RETAILER’S WILLINGNESS TO SELL COCA-COLA NO OF OUTLETS YES NO TOTAL 93 32 125 IN PERCENTAGE 74% 26% 100% NO OF OUT LETS IN PERCENTAGE 26% YES NO 74% CHART 6: NO OF RETAILER’S WILLINGNESS TO SALE COCA-COLA PRODUCTS INTERPRETATION:From the given table.

14 have none VISI coolers and 17 have both Coca-Cola product and Pepsi VISI coolers.5.1.62 outlets have Pepsi VISI coolers. 53 .3 VISI COOLERS IN STORES NAME COMPANY OF THE NO OF OUTLETS IN PERCETAGE COCA-COLA PEPSI BOTH NONE TOTAL 32 62 17 14 125 26% 50% 14% 10% 100% NO OF OUT LETS 70 62 60 50 40 32 30 20 10 0 COCO-COLA PEPSI BOTH NONE 17 14 NO OF OUT LETS CHART 7: VISI COOLER AVABILITY IN STORES INTERPRETATION:From the given table of outlets behavior toward to Coca-Cola product outlets. 32 have Coca-Cola product VISI coolers.

1. 54 .5.4 COCA-COLA VISI COOLER REQUIREMENT NO OF OUTLETS YES NO TOTAL 42 34 76 IN PERCENTAGE 55% 45% 100% NO OF OUTLETS IN PERCENTAGE 45% yes no 55% CHART 8: COCA-COLA VISI COOLERS REQUIREMENTS INTERPRETATION:From the given table. 42 outlets need Coca-Cola product VISI COOLERS.

5 SOLD COCA-COLA PRODUCT EARLIER NO OF OUTLETS YES NO TOTAL 53 38 91 IN PERCENTAGE 48% 42% 100% NO OF OUTLETS IN PERCENTAGE 42% 48% YES NO CHART 9:COCA-COLA PRODUCT SOLD EARLIER INTERPRETATION:From the given table.5. 55 .1. 53 outlets have sold Coca-Cola product earlier and now converted into Pepsi and 38 have never sold Coca-Cola product.

1.5.6 COCA-COLA SERVICE NO OF OUTLETS YES NO TOTAL 32 44 76 IN PERCENTAGE 42% 58% 100% NO OF OUTLETS 44 45 40 35 30 25 20 15 10 5 0 YES NO NO OF OUTLETS 32 CHART 10: COCA-COLA SERVICE INTERPRETATION:From the given table 32 outlets said yes and 44 said no. 56 .

1. 57 have good sale and 23 outlets have very good sale of soft drink 57 .5. 45 outlets have average sale.7 DAILY SALES NO OF OUTLETS AVERAGE GOOD VERY GOOD TOTAL 45 57 23 125 IN PERCENTAGE 36% 46% 18% 100% NO OF OUTLETS 60 57 50 45 40 30 23 20 NO OF OUTLETS 10 0 AVERAGE GOOD VERY GOOD CHART 11: COLD DRINK SALE OF OUTLETS INTERPRETATION:From the given table.

5.8 REASONS FOR BEING A COCA-COLA RETAILER NO OF OUTLETS VISI COOLER NOT 14 IN PERCENTAGE 16% PROVIDED TIE UP WITH PEPSI/PEPSI 26 APPROACHED FIRST COCA-COLA PRODUCT 22 24% 28% SERVICE NOT GOOD SCHEMES NOT GOOD AS 29 PEPSI TOTAL 91 100% 32% NO OF OUTLETS 30 25 20 15 10 5 0 VISI COOLER NOT PROVIDED TIE UP WITH PEPSI COCO-COLA SERVICE NOT GOOD SCHEME NOT GOOD AS PEPSI 14 NO OF OUTLETS 29 26 22 CHART 12: REASON FOR NOT SELLING COCA-COLA COMPANY PRODUCTS 58 .1.

FIGURE 9: BCG MATRIX STARS High growth business competing in market where they are relatively strong compared with the competition. 14 outlets didn‟t sell Coca-Cola product due to absence of Coca-Cola product VISI coolers. According to this technique. and 29 due to not so good schemes. High market share 59 .INTERPRETATION:From the given table. businesses or products are classified as low or high performers depending upon their market growth rate and relative market share. 22 due to bad service. High growth. 26 outlets due to Pepsi tie ups and first approach. They have a high point shares and are the ideal businesses. 5.2 BCG-MATRIX FOR THE PRODUCT LINE OF COCA-COLA Boston consulting group (BCG) matrix is developed by Bruce Henderson of the Boston consulting group in the early 1970‟s.

High market share DOGS Businesses that have low relative share and low expected growth rate. Low growth. Low market share QUESTIONMARKS Businesses with low point share but which may have a high growth rate. Low market share 60 . Low GROWTH. These businesses were stars but now have lost their attractiveness.CASH COWS The low-growth business with a relatively high point market shares. High growth. a competing force. This suggests that they have potential but may require huge ever. a competing force extraordinary effort in order to grow point share. Dogs may generate enough points to sustain but they are rarely. if ever.

3 PORTER’S 5 FORCES MODEL    The five forces model of Porter is and outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value…) of an industry structure Allows the development of a competitive strategy Suggests 5 main forces may be decisive in helping shape the outcome: · Suppliers 61 .Figure 10: COCA-COLA BCG MATRIX 5.

There are several suppliers for packaging as well as the abundance in supply of inexpensive aluminum.  First. the main inputs are sugar and packaging. an initiative to encourage reliable supply. To reduce the threats it embraced bottling and concentrated on diversification          Teas Milk Coffee Juice Alcoholic drinks Bottled water Energetic drinks Other refreshments Coconut water o Power of Suppliers   Sugar Packaging Bargaining power of suppliers is low due to two reasons. direct negotiations from concentrate producers to suppliers are present. faster delivery and lower prices. Sources of sugar are on the open market which subsequently makes the creation power of suppliers at low levels.  Second. 62 .· · · · New entrants Substitutes Buyers Rivalry (Industrial competitors) Coca-Cola: Porter’s Five Forces o Rivalry (Condition concentrated on 2 main   Coca-Cola Pepsi o Substitutes (Wilde and Thick causing a significant decline in Coca-Cola profits .

o Bargaining Power of Buyers depends on the marketing channel used.4 SALES PROJECTION 63 . For Coca-Cola. there are six core channels such as:       Super Markets Convenience Stores Mass Merchandisers Fountain Vending machine Restaurants and Food stores Bargaining power of buyer is high for fountain supermarkets and mass merchandising because of the low profitability and strong negotiation power of retail channels but for vending bargaining power is non-existing caused by high profitability o New threats for Indian market       Big cola Rc cola Tata Tetley‟s fun pill Tata glucose plus MORE cola Local Brands 5.

you can see a positive earnings trend revenue. Even though the company reported a couple of down years the 64 .1 REVENUE IN BILLION $ REVENUE IN BILLION $ 70000 60000 50000 40000 REVENUE IN BILLION $ 30000 20000 10000 YEAR 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CHART 13: COCA-COLA REVENUE IN BILLION $ In analyzing Coca-Cola's earnings growth over the past five years.

So automatic it will affect on the future revenue growth.32% increase over its 2007 earnings.overall trend is positive. And also company planning to invest $30 billion globally by 2020. Coca-Cola's earnings have been increasing and have shown a 43. Over the past five years. 2 UNIT SALES VOLUME- UNIT CASE VOLUME IN BILLION 35 30 25 20 UNIT CASE VOLUME IN BILLION 15 10 YEAR 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CHART 14: UNIT CASE VOLUME IN BILLION 65 .

sporting events and other outlets 5.” and also the company has planned to invest $5 billion in India over the next eight years on expanding its bottling and other business capacities. ensures product affordability and builds brand loyalty to deliver long-term growth. One-sixth of the planned global investment will be made in India. they want to create in 10 years.The company plans to invest $30 billion globally by 2020. What they have achieved in 125 years. Customers at college campuses. partnerships and a portfolio that enhances the consumer experience. "Their target is to double their business between 2010 and 2020.5 TREND ANALYSIS 66 ." Kent said. convenience stores. "Investment in India is focused on delivering innovation. Coca-Cola‟s Plant Bottle is expanding beyond the company‟s Dasani bottled water line in a new three-city pilot program.

2017 Sep.1 0 Sept. 2011 31-Mar-12 Sept.30. 30. earnings have increased while some of the listed profit margins have slipped in 2011.2 SALES DATA INPERCENTAGE 0. 30. 30.31.2013 Mar.30.31. 67 .2016 Mar. 2010 31-Mar-11 Sept.2012 Mar.2017 -0.30. 2009 31-Mar-10 Sept.2 CHART 15: TREND ANALYSIS After analysis of Coca-Cola's profitability it tells the story of a solid company with some declining margins. Coca-Cola has a large amount of free cash at hand.2016 Sep.2015 Sep.31.31.1 -0.31.2013 Sep.2014 Mar.SALES DATA INPERCENTAGE 0.30.30.4 0.5 0.2014 Sep.2015 Mar. 2007 31-Mar-08 Sept. 2008 31-Mar-09 Sept. Over the past 5 years. 30.3 0.30. 30.

it's now the No. The various products of Coca-Cola available in India are: 1. Cola Orange and Cola Raspberry. 3 soft drink in the world. which goes hand in hand with its bright color. Cola Lime. Cola Lemon. Cola Lemon Lime. Diet Coke is the drink for people who want no calories. playful personality. Cola. but plenty of taste. Cola Green Tea. bold fruit taste and tingly carbonation. 68 . club soda and a myriad of fruit flavors. Available in the following flavors: Black Cherry Cola Vanilla.6 PRODUCT PROFILE OF COCA-COLA A. particularly teens. Kinley: Kinley is a carbonated water that comes in wide array of such as tonic. Available in the following flavors: Cola-Cola Green Tea. Fanta: Fanta was introduced in the United States in 1960. Diet Coke: Diet Coke was born in 1982. Also the company has planned to invest $5 billion in India over the next eight years on expanding its bottling and other business capacities. as well as the best-known product in the world.which means it will likely continue to grow for the foreseeable future because of the investment in $30 billion globally by 2020. and Cola Lemon. Cola Orange and Cola Raspberry 3. Known as Coca-Cola light in some countries. Cola Lime. 4. 5. This positive imagery is driven by the brand's fun. fondly associate Fanta with happiness and special times with friends and family. bitter lemon. Cola Lemon Lime. Consumers around the world. 2. Coca-Cola: Coca-Cola is the most popular and biggest-selling soft drink history.

straightforward attitude that sets it apart from other soft drinks. 69 . Bitter Lemon. that is acquired by the Coca-Cola Company in 1993. This drink is available in lemon flavor. Citrus. Sprite is the world's leading lemon-lime flavored soft drink. Bitter Water. It is a fruit associated with good times like no other. Available in the following flavors: Bitter Lemon Citrus Grapefruit. Sprite encourages you to be true to who you are and to obey your thirst. Originally introduced in 1977. Bitter Grapefruit. Blueberry Pomegranate. clean taste that really quenches your thirst. Bitter Herbal. MAAZA: Mango.25 L and also in PET pack size. mature and uniquely masculine attitude. fizzy taste and its confident. 8. light lemon-lime taste and funl oving attitude.This brand known for its strong. 7. Thums up was acquired by the Coca Cola Company in 1993. It's a homegrown. national treasure in India. with a strong appeal to young people. Ginger Ale. Forming a frozen concentrate that when reconstituted created orange juice. Lemon and Raspberry 5. Limca continues to build a loyal following among young adults who love the lighthearted way it complements the best moments of their lives. Sprite: Introduced in 1961. Available in 400 ml. Lemon and Lemon Lime. Club Soda. 9.1 L and 1. 4 soft drink worldwide. But Sprite also has an honest. Sprite is sold in more than 190 countries and ranks as the No.Available in the following flavors: Apple Peach. Millions of people enjoy Sprite because of its crisp. Limca: This thirst-quenching beverage features a fresh. Thumps up: It is a leading sparkling soft drink and most trusted brand in India. 6. Apy called the king of fruits. PULPY ORANGE: The company developed a process that eliminated 80 % of the water in orange juice.

The flavor of Pepsi Blue was thought by drinkers 70 . Pepsi-Cola has grown to become one of the best-known. creating new products. Mirinda is a brand of soft drink available in fruit varieties including orange. The rights to the brand are held by Dr Pepper Snapple Group in the United States. 5. new flavors and new packages in varying shapes and sizes to meet the growing demand for convenience and healthier choices. 6. 3.5.7 PRODUCT LINE OF INDIGENOUS COMPETITOR PEPSICO PepsiCo: Pepsi has been bringing fun and refreshment to consumers for over 100 years. crisp taste. The orange flavor of Mirinda represents the majority of Mirinda sales worldwide. MIRINDA: Mirinda was originally produced in Spain. pineapple. 7UP: 7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. It was launched in India near the cricket world cup to associated the Pepsi with the Indian people as Blue is Official colour of Indian cricket team. The various product of Pepsi available in India are: 1. DIET PEPSI: With its light. the company continues to Innovate. and apple. Mountain Dew (and its energy drink counterpart known as AMP) often incurs the disapproval of health experts due to its relatively high caffeine content for a soft drink or energy drink. and passion fruit and grape flavors. Today. Diet Pepsi gives you all the refreshment you need -with zero sugar. refreshing. Crisp. PEPSI: Pepsi is the most saleable product of PepsiCo. grapefruit. Light. PEPSI BLUE: Pepsi Blue is a berry-flavored soft drink produced by PepsiCo. and PepsiCo (or its licensees) in the rest of the world. zero calories and zero carbs. It is popular in the younger generation all around the world 2. 4. banana. MOUNTAIN DEW: Mountain Dew (also known as Mtn Dew as of late 2008) is a soft drink Distributed and manufactured by PepsiCo. From its humble beginnings over a century ago. strawberry. most-loved products throughout the world.

Mandarin Orange. Varieties of Slice have included Apple. Cherry Cola. Cherry-Lime. Gatorade. Tropicana. Frito-Lay and Pepsi-Cola Brands Foods BeveragesPepsiCo India‟s expansive portfolio includes iconic refreshment 71 . Strawberry. SLICE: Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in 1984. and Dr Slice. Our main businesses – Quaker. Pineapple. Passion fruit. "Red".to be similar to cotton candy with a berry-like aftertaste (it resembled that of blueberries or Raspberries). Grape. Fruit Punch. 7.8 MAJOR COMPITATORS IN INDIAN BEVERAGE INDUSTRY PEPSICO PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Peach. 5.

BrandsDabur Real. Dabur Lemonez RED BULL Red Bull Energy Drink is a market leader in the 500 crore energy drink segment.000 acres (4047 ha). Apart from this. Amalgamated Bean Coffee Trading Company Ltd. Personal Care and Food Products. Dabur Activ. the group also sources coffee from 11. Red Bull sugar free. Dabur burst. Red bull energy shots.000 small growers. The land value of the plantations is US$250–300 million. It is the largest producer of Arabica beans in Asia. ABCTCL grows coffee in its own estates of 10. Red bull cola CAFÉ COFFEE DAY Café Coffee Day is a division of India's largest coffee conglomerate. ABCTCL is 72 .DABUR INDIA LIMITED Dabur India Limited is the fourth largest FMCG Company in India with interests in Health Care. BrandsRed Bull. (ABCTCL). It is most famous for Dabur Chyawanprash and Hajmola and REAL fruit juices.

Lychee Chill. India and a subsidiary of the Tata Group. and Strawberry Blus. Chill O Coffee. Europe and Japan. Mango Shake. Black Currant B. Nescafe 3 in 1 TATA GLOBAL BEVERAGES LIMITED Tata Global Beverages Limited (formerly Tata Tea Limited) is an Indian multinational non-alcoholic beverages company headquartered in Kolkata. Cafe Mocha . Devils Own. Masala Garam Frosteas..Lemon Freeze. Espresso. Solar Eclipse.. Nestle is known for coffee and tea products BrandsNescafe. Ethiopian Cold Coffees...Cool Blue. Straw berry Choco-lattes. Lemon Demon.Chocó Rocks... Macchiato. Health and Wellness Company.. West Bengal..Darjeeling-Divi. They operate about 1000 café‟s across India Beverages Hot Coffees. Tropical Ice ber. Black Coffee. Mochachillo..Cafe Latte. Aztec. NESTLE INDIA Nestlé is the world's leading Nutrition... Assam Express. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee.. Hoteas. Hot Chocó Latte Fruiteazers.... Green Apple Sod.one of India‟s leading coffee exporters with clients across USA. Cafe Frappe. Kaapi Nirvana.All Day Refresh.. 73 . Cappuccino. Irish Coffee. Nestea.

BrandsTEA. Tata Kaapi 74 . Tata's Coorg Double Roast.Tata Tea. Tetley. Chakra Gold and Gemini COFFEE BRANDS Tata's Coorg 100% Pure Filter Coffee .

CHAPTER – VI 75 .

Coca-cola losing in market share was found out by the analysis  Because of low profit margin almost all retailers are not interested in Coca-Cola Company selling.1 SUMMARY & FINDINGS As we know that Coca-cola is very big organization and market leader in cold drink products. health issues.Ex. But in case of Hyderabad market Coca-cola is losing their market shares because of new competitors.  From the total samples 62 outlets have Pepsi VISI coolers.  Out of 76.  Retailers were selling different brands. It has maximum market share in cold drink.  53 outlets have sold Coca-Cola product earlier and now converted into Pepsi and 38 have never sold Coca-Cola product.  Because of new competitors For . 26 outlets due to Pepsi tie ups and first approach. local brands & existing competitors‟ PepsiCo. Coca-cola is losing market. and 29 due to not so good schemes.SUMMARY. 76 .  Out of 125 samples 73% outlets are ready to sale Coca-Cola products. 22 due to bad service.  Retailers are not interested because they don‟t have VISI coolers facility but if company provides them such facility they will be ready to sale coca-cola products. CONCLUSIONS & SUGGESTIONS 6. 32 have Coca-Cola product VISI coolers. packaged drinking water & energy drink which are its main/core products. Because they were able to receive more margins from non popularized brand as compare to well known brand.Rc cola.  From total samples 34 outlets have Coca-Cola product stock. 57 have good sale and 23 outlets have very good sale of soft drink  Main reason for not selling Coca-cola are 14 outlets didn‟t sell CocaCola product due to absence of Coca-Cola product VISI coolers. 32 outlets are ready to sale Coca-cola product and 44 are not ready  From the sale point of view 45 outlets have average sale. 66 have Pepsi stock and 14 have both means Coca-cola is losing market.14 have none VISI coolers and 17 have both Coca-Cola product and Pepsi VISI coolers.

It gave good amount of exposure mainly because after being trained. A good understanding of the market was accomplished as around 125 retailers were spoken to and that group consisted of 77 .  They should focus on repairing faulty VISI coolers quickly. trainees were given an opportunity to carry out the process ourselves.e. it took a lot of it to convince the store managers and retailer‟s for keeping Coca-cola product and their requirements from the company and even more to convince the retailer‟s to getting reviews from them about the company.  Shortages during the summer season should be avoided because it conveys bad signal to the outlets and consumers.  Distributors should monitor market developers and salesmen regularly to avoid inefficiencies in the supply process. 6:3 CONCLUSION The Sampling activity was a good first step into the area of Marketing and Sales.6. So they can feel good or they can reliase it they are the part of coca-cola family.  Coca-cola has to organise retaiers meat in every quarters.  Coca-cola have to focus more on the flexibility of outlets i.  Coca-cola has to launch drinks in 150-180ml within Rs 10-12 price range in pet/can pack.2 SUGGESTIONS The suggestion are related to the factors which the retailers behavior towards Coca-cola products. according to the consumption & products of the outlets they have to allocate the margin.  The process of VISI coolers installation should be simplified.  Coca-cola should focus on all wine shops because they provide good business for all seasons  Coca-cola has to focus more on HORECA distribution channels. because.  Distributors should focus on finding out the requirements of outlets and the problems they are facing. It helped in developing a considerable amount of convincing skills..  It should focus on untapped markets where there is scope to increase its market share.  Surprise visits should be made to increase the efficiency of Market Developers.

a variety of retailer‟s.     78 . This even helped in the polishing of communication skills. It helped in developing the kind of relations one needs to uphold in the corporate world and it helped in building up the right attitude. It was a good opportunity to work on the skill of patience. It even gave a good understanding of behavior of retailer‟s when talked in different situations. as a large number of retailers were to be dealt with. As all the points in the above mentioned paragraph. As a future line of research. a must-have to survive and make it big in the present world. the training period was a good experience and a good stepping stone into the real business world. are the must-have skills for anyone in the field of Marketing and Sales. the Marketing and Sales Department at HCCBPL could offer projects like:  Analysis Impact of advertisements on the Sales of a particular product    Analysis of major trends in the Indian Non-Alcoholic Beverage market    Analysis of changing trends in the market for Coca-Cola products    Formulation of Market penetration strategies.

BIBLIOGRAPHY AND WEBLIOGRAPHY 79 .

New Delhi (2001).D Vohra.com  http://news.com  http://www. Prafulla Y.  Walker Boyd and Millions Larreche.  Richard I Levin and David S Rubin.BOOKS AND JOURNALS:  Philip Kotler. 6th Edition.A decision focused Approach”.”Marketing Management”. Tata McGraw Hills Education Private Limited. “Strategic Marketing Planning”. 5th Edition.hoovers.”Principles of Marketing.ko. Tata McGraw Hills Education Private Limited (2010).  N.uk  http://www. Pearson Education. New Delhi (2007).bbc.worldofcoca-cola. New Delhi(2010).co. Pearson Education. 4th Edition. New Delhi (2003).com  http://www.”Marketing Research – An Applied Orientation”. 3rd Edition. 4th Edition MacGraw Hills Company.A south Asian Perspective”.”Quantitative Techniques in Management”.coca-cola.comcybernoon.com  http://www.” Sales Distribution Management Text and Cases”.”Marketing Strategy.com  http://www.  Collin Gilligan and Richard M. 13th Edition. Elsevier Production (2006).  Ranjan Saxena. Websites. 4th Edition.com  http://www. 7th Edition Pearson Education. New Delhi (2011). The McGraw Hills Companies.  http://www.cocacola-india.org 80 . New Delhi(2007).  Krishna K hawaldar and Vasant M Cavale.wikipedia.Agnihotri and Eshan ul Haque.S Wilson.”Statistics for Management”.google. Gary Armstrong.  Naresh Malhotra and Satyahusan Dass.

ANNEXURE 81 .

82 .

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