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STUDY OF DISTRIBUTION CHANNEL OF COCA-COLA FOR NAGPUR CITY

CHAPTER 1
INTRODUCTION
INTRODUCTION TO THE TOPIC
The process of planning, implementing and controlling the efficient
storage of raw materials, in-process inventory, finished goods and related information from point
of origin to point of consumption for the purpose of conforming to customers requirement.
The objective of logistics is to link the market place, the distribution network, the manufacturing
process and procurement activity, so as to provide higher levels of service to the consumers and at
lower cost.
The concept of logistics is based on the system approach. The flow of material from a supplier to
a manufacturing plant and finally to the end customer, ensuring efficiency and effectiveness in
sequential activities to achieve the objective of customer satisfaction at a reduced cost.
Logistics recognizes that all the activities of material movement across the business process are
interdependent and need close coordination.
MATERIAL FLOW
SUPPLIER

PROCUREME

OPERATION

DISTRIBUTI

CUSTOM

INFORMATION FLOW

LOGISTICS CONCEPT

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The functional areas of logistics are:


Information flow.
Warehousing.
Inventory control.
Packaging.
Transportation.

DISTRIBUTION SYSTEM

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Product distribution (or place) is one of the four elements of the marketing
mix. Distribution is the process of making a product or service available for use or consumption by a
consumer or business user, using direct means, or using indirect means with intermediaries.
The other three parts of the marketing mix are product, pricing, and promotion. Distribution of
products takes place by means of channels. Channels are sets of interdependent organizations
(called intermediaries) involved in making the product available for consumption.[1] Merchants
are intermediaries that buy and resell products. Agents and brokers are intermediaries that act on
behalf of the producer but do not take title to the products. A firm can design any number of
channels. Channels are classified by the number of intermediaries between producer and consumer.
[1]
A level zero channel has no intermediaries. This is typical of direct marketing. A level one channel
has a single intermediary. This flow is typically from manufacturer to retailer to consumer.

In practice, many organizations use a mix of different channels; in particular,


they may complement a direct sales-force who typically call on larger customers with agents who
cover the smaller customers and prospects. In addition, online retailing or e-commerce is leading
to disintermediation. Retailing via Smartphone or m-commerce is also a growing area. To motivate
intermediaries the firm can use positive actions, such as offering higher margins to the intermediary,
special deals, premiums and allowances for advertising or display.[1] On the other hand, negative
actions may be necessary, such as threatening to cut back on margin, or hold back delivery of
product. Channel conflict can arise when one intermediary's actions prevent another intermediary
from achieving their objectives. Vertical channel conflict occurs between the levels within a channel
and horizontal channel conflict occurs between intermediaries at the same level within a channel.

A channel of distribution or trade channel is defined as the path or route


along which goods move from producers or manufacturers to ultimate consumers or industrial users.
In other words, it is a distribution network through which producer puts his products in the market
and passes it to the actual users. This channel consists of - producers, consumers or users and the
various middlemen like whole sellers, selling agents and retailers (dealers) who intervene between
the producers and consumers. Therefore, the channel serves to bridge the gap between the point of
production and the point of consumption thereby creating time, place and possession utilities.

These channels of distribution are broadly divided into three types:-

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Producer-Customer:- This is the simplest and shortest channel in which no middlemen is


involved and producers directly sell their products to the consumers. It is fast and economical
channel of distribution. Under it, the producer or entrepreneur performs all the marketing
activities himself and has full control over distribution. A producer may sell directly to
consumers through door-to-door salesmen, direct mail or through his own retail stores. Big
firms adopt this channel to cut distribution costs and to sell industrial products of high value.
Small producers and producers of perishable commodities also sell directly to local
consumers.

Producer-Retailer-Customer:- This channel of distribution involves only one middlemen


called 'retailer'. Under it, the producer sells his product to big retailers (or retailers who buy
goods in large quantities) who in turn sell to the ultimate consumers.This channel relieves the
manufacturer from burden of selling the goods himself and at the same time gives him
control over the process of distribution. This is often suited for distribution of consumer
durables and products of high value.

Producer-Wholesaler-Retailer-Customer:- This is the most common and traditional


channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are involved.
Here, the producer sells his product to wholesalers, who in turn sell it to retailers. And
retailers finally sell the product to the ultimate consumers. This channel is suitable for the
producers having limited finance, narrow product line and who needed expert services and
promotional support of wholesalers. This is mostly used for the products with widely
scattered market.

Company profile

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Coca-Cola history began in 1886 when the curiosity of an Atlanta
pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold
at soda fountains.
Prior to his death in 1888, just two years after creating what was to become the world's
1-selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties, with the
majority of the interest sold to Atlanta businessman, Asa G. Candler. Under Mr. Candler's leadership,
distribution of Coca-Cola expanded to soda fountains beyond Atlanta
The Coca-Cola Company re-entered India through its wholly owned subsidiary,
Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the
Indian economy to foreign investments in 1991.
Today, these brands are the leading brands in most beverage segments. The Coca-Cola
Company's brands in India include Coca-Cola, Fanta Orange, Limca, Sprite, Thumps Up, Burn,
Kinley, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and the Georgia Gold range
of teas and coffees and Vitingo (a beverage fortified with micro-nutrients).
In India, the Coca-Cola system comprises of a wholly owned subsidiary of The
Coca-Cola Company namely Coca-Cola India Pvt. Ltd which manufactures and sells concentrate and
beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan
Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-Cola Company, who
are authorized to prepare, package, sell and distribute beverages under certain specified trademarks
of The Coca-Cola Company; and an extensive distribution system comprising of our customers,
distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to
authorized bottlers who are authorized to use these to produce our portfolio of beverages.
The Coca-Cola system in India has already invested USD 2 Billion till 2011,
since its re-entry into India. The company will be investing another USD 5 Billion till the year 2020.
The Coca-Cola system in India directly employs over 25,000 people including those on contract.
Their operations also lead to incremental growth for enterprises engaged in postproduction activities like merchandising, marketing and sales. In addition, we share best practices
and technological advancements with our suppliers, vendors and allied industries which often lead to
improvement in the overall standards of quality across industries.
Coca-Cola is the best-selling soft drink in most countries, and was recognized as
the number one global brand in 2010. While the Middle East is one of the only regions in the world
where Coca-Cola is not the number one soda drink, Coca-Cola nonetheless holds almost 25% market
share (to Pepsi's 75%) and had double-digit growth in 2003. Similarly, in Scotland, where the locally
produced Irn-Bru was once more popular, 2005 figures show that both Coca-Cola and Diet Coke
now outsell Irn-Bru. In Peru, the native Inca Kola has been more popular than Coca-Cola, which
prompted Coca-Cola to enter in negotiations with the soft drinks company and buy 50% of its stakes.
In Japan, the best selling soft drink is not cola, as (canned) tea and coffee are more popular.

MARKETING CONCEPT-

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The aim to marketing is to meet and satisfy target customers needs and
wants. Customer is the king of market thus he must not only satisfied with the quality of the product ,
but they must get the product when they need and in the state in which they need.

Marketers need to study their target customers wants, preferences, and


buying behaviour. Such study will provide clues for developing new products , its features, prices,
channels , message, and other marketing mix elements.

Marketing plays an important role in the strategic planning process for many
organizations. Although some marketing positions are represented at the corporate level, but most are
at the functional level within the business units of an organization.

However, marketing is involved in strategic planning at all organizational


level. Marketing in ongoing process of planning and executing it in the marketing mix (product,
price, promotion, and place) for product services or ideas to create exchange between individual and
organization.

Marketing is a creative industry, which includes advertising, distribution, and


selling. It is also concerned with anticipating the customers future needs and wants, which are often
discovered through market research.

Marketing is the process of creating ordination on organization for successful


selling of a product or service that people not only desire but are willing to buy there for goods.
Marketing must be able to create a proposition or set of benefits for the end customer and deliver
value through products and services.

There are five competing concepts under which organizations can choose to
operate their business; the production concept, the product concept, the selling concept, the
marketing concept, and the holistic marketing concept. The four components of holistic marketing
are relationship marketing, internal marketing, integrated marketing, and socially responsive
marketing. The set of engagements necessary for successful marketing management includes,
capturing marketing insights, connecting with customers, building strong brands, shaping the market
offerings, delivering and communicating value, creating long-term growth, and developing
marketing strategies and plans.

Staying ahead of the consumer is an important part of a marketer's job. It is


important to understand the "marketing environment" in order to comprehend the consumers
concerns, motivations and to adjust the product according to the consumers needs. Marketers use the
process of marketing environmental scans, which continually acquires information on events
occurring outside the organization to identify trends, opportunities and threats to a business. The six
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key elements of a marketing scan are the demographic forces, socio-cultural forces, economic
forces, regulatory forces, competitive forces, and technological forces. Marketers must look at where
the threats and opportunities stem from in the world around the consumer to maintain a productive
and profitable business.

The main functions of distributing any commodity to its end user involves
1- Material handling
2- Warehousing
3- Distribution system

MATERIAL HANDLING
Material Handling is the field concerned with solving the pragmatic problems
involving the movement, storage, control and protection of materials, goods and products throughout
the processes of cleaning, preparation, manufacturing, distribution, consumption and disposal of all
related materials, goods and their packaging. The focus of studies of Material Handling course work
is on the methods, mechanical equipment, systems and related controls used to achieve these
functions. The material handling industry manufactures and distributes the equipment and services
required to implement material handling systems, from obtaining, locally processing and
shipping raw materials to utilization of industrial feed stocks in industrial manufacturing processes.
Material handling systems range from simple pallet rack and shelving projects, to complex conveyor
belt and Automated Storage and Retrieval Systems from mining and drilling equipment to custom
built barley malt drying rooms in breweries. Material handling can also consist of sorting and
picking, as well as automatic guided vehicles.
Material handling equipment is equipment that relate to the movement, storage,
control and protection of materials, goods and products throughout the process of manufacturing,
distribution, consumption and disposal. Material handling equipment is the mechanical equipment
involved in the complete system. Material handling equipment is generally separated into four main
categories: storage and handling equipment, engineered systems, industrial trucks, and bulk material
handling.
Material handling equipment is used to increase output, control costs, and maximize
productivity. There are several ways to determine if the material handling equipment is achieving
peak efficiency. These include capturing all relevant data related to the warehouses operation,
measuring how many times an item is touched from the time it is ordered until it leaves the
building, making sure you are using the proper picking technology, and keeping system downtime to
a minimum. A special analytical data-set known as Stock-keeping units (SKUs) has been devised to
aid analysis of materials handling, which is obviously less efficient when a material asset is handled
any more than a minimally necessary number of times.

Storage and handling equipment


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Storage and handling equipment is a category within the material handling
industry. The equipment that falls under this description is usually non-automated storage equipment.
Products such as pallet racking, shelving and carts, among others, belong to storage and handling.
Many of these products are often referred to as "catalog" items because they generally have globally
accepted standards and are often sold as stock materials out of Material handling catalogs.

Engineered systems
Engineered systems are typically custom engineered material handling
systems. Conveyors, Handling Robots, AS/RS, AGV and most other automated material handling
systems fall into this category. Engineered systems are often a combination of products integrated to
one system. Many distribution centers will optimize storage and picking by utilizing engineered
systems such as pick modules and sortation systems.
Equipment and utensils used for processing or otherwise handling edible product or ingredients must
be of such material and construction to facilitate thorough cleaning and to ensure that their use will
not cause the adulteration of product during processing, handling, or storage. Equipment and utensils
must be maintained in sanitary condition so as not to adulterate or contaminate product.

Trucks
Industrial trucks usually refer to operator driven motorized warehouse vehicles,
powered manually, by gasoline, propane or electrically.[2] Industrial trucks assist the material
handling system with versatility; they can go where engineered systems cannot. Forklift trucks are
the most common example of industrial trucks but certainly aren't the extent of the category. Tow
tractors and stock chasers are additional examples of industrial trucks. Their greatest advantage lies
in the wide range of attachments available; these increase the truck ability to handle various types
and shapes of material.

Bulk material handling


Bulk material handling equipment is used to move and store bulk materials such
as ore, liquids, and cereals. This equipment is often seen on farms, mines, shipyards and refineries.
This category is also explained in Bulk material handling.

On-Rails Transfer Cart


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On-rails transfer cart is a kind of material handling equipment. It moves on the
rails and can transfer heavy cargoes or equipment with the weight 1-300t between the workshops or
warehouses in the factory. It is widely used in the line of metallurgy, coal, heavy manufacturing,
automotive assembly, etc. Its power can be AC or DC. DC Power has rail transmit power and battery
power, while AC power includes cable power and slippery touch line power. In addition, there is the
manual rail transfer cart or towed rail transfer cart, also called motorized transfer trolley.

Conveyors
Conveyors are another form of material handling. Conveyors can be used in a
multitude of ways from warehouses to airport baggage handling systems. Some types of conveyors
are unibilt, power and free, chain, towline and roller conveyor.

Cantilevered Crane Loading Platform


Cantilevered crane loading platforms are temporary platforms attached to the
face of multi-storey buildings or structures to allow materials and equipment to be directly loaded on
or shifted off floor levels by cranes during construction or demolition. They may be fixed or rolling
and a variety of designs are used including fully fabricated and demountable types. The platforms are
supported on needles (cantilevered beams) anchored to the supporting structure.

WAREHOUSING
Warehouse is a storage structure constructed for the protection of the quality and
quantity of the stored produce. The need for a warehouse arises due to the time gap between
production and consumption of products. Warehousing or storage refers to the holding and
preservation of goods until they are despatched to the consumers. By bridging this gap, storage
creates time utility. There is a need for storing the goods so as to make them available to buyers as
and when required. Storage enables a firm to carry on production in anticipation of demand in future.
Warehouses enables the businessmen to carry on production throughout the year and sell their
products, whenever there is adequate demand. Need for warehouses arises also because some goods
are produced only in a particular season but are demanded throughout the year. Similarly, certain
products are produced throughout the year but demanded only during a particular season.

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Types of Warehouses : Private Warehouses


These warehouses are owned and operated by big manufacturers and
merchants to fulfil their own storage needs. Big business firms which need large storage capacity on
a regular basis and who can afford money, construction and maintain their private warehouses. A big
manufacturer or wholesaler may have a network of his own warehouses in different parts of the
country. The private warehouses are licensed to private persons and only the goods imported by or on
behalf of the licensee are stored in such warehouse.

Public Warehouses
These warehouses are a specialised business establishment that provide
storage facilities to the general public for a certain charge. It may be owned and operated by an
individual or a cooperative society. It works under a licence from the government. They are generally
located near the junctions of railways, highways and waterways. They therefore provide excellent
facilities for the easy receipt, despatch, loading and unloading of goods. They are very important in
the marketing of agricultural products. A public warehouse is also known as 'duty paid warehouse'.
Public warehouses are very useful to the business community as they
can meet their storage needs easily and economically by making use of the public warehouse
,without heavy investment. Such warehouses provide storage facilities to small manufacturers and
traders at low costs. They provide facilities for the inspection of goods by prospective buyers. They
also permit packaging and grading of goods. The public warehouses receipts are good collateral
securities for borrowings.

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Bonded Warehouses
These warehouses are licensed by the Government to accept
imported goods for storage until the payment of customs duty. They are located near the ports. They
are either operated by the Government or work under the control of customs authorities. The
warehouse is required to give an undertaking or 'Bond' that it will not allow the goods to be removed
without the consent of the custom authorities. The goods are held in bond and cannot be withdrawn
without paying the customs duty. Such warehouses are very helpful to importers and exporters. If an
importer is unable to pay customs duty immediately after the arrival of goods he can store the goods
in a bonded warehouse. He can withdraw the goods in instalments by paying the customs duty
proportionately.

Benefits of Warehousing

Warehouses enable storage of goods when their supply exceeds demand and by releasing
them when the demand is more than immediate productions. This on one hand ensures a
regular supply of goods in the market and on the other hand it helps to stabilize prices by
matching supply with demand.

Warehouses provide for safe custody of goods. Businessmen can thus minimize the risks to
goods from loss, damage, fire, theft etc. Perishable products can be preserved in cold storage.
Also, the goods kept in a warehouse are generally insured.

A warehouse provides facilities for processing, packing, blending, grading etc, of the goods
for the purpose of sale. The prospective buyers can inspect the goods kept in a warehouse.

Warehouses provide a receipt to the owner of goods for the goods kept in the warehouse. The
owner can borrow money against the security of goods by making an endorsement on the
warehouse receipt. By keeping the imported goods in a bonded warehouse, a businessman
can pay customs duty in instalments.

Network of distribution warehouses at different geographical locations by hiring space from


private warehouses

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CHAPTER 2
COMPANY PROFILE
Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist,
Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda
fountains. He created a flavoured syrup, took it to his neighbourhood pharmacy, where it was mixed
with carbonated water and deemed "excellent" by those who sampled it. Dr. Pemberton's partner and
bookkeeper, Frank M. Robinson, is credited with naming the beverage "Coca-Cola" as well as
designing the trademarked, distinct script, still used today.
Prior to his death in 1888, just two years after creating what was to become
the world's 1-selling sparkling beverage, Dr. Pemberton sold portions of his business to various
parties, with the majority of the interest sold to Atlanta businessman, Asa G. Candler. Under Mr.
Candler's leadership, distribution of Coca-Cola expanded to soda fountains beyond Atlanta.
In 1894, impressed by the growing demand for Coca-Cola and the desire to make
the beverage portable, Joseph Biedenharn installed bottling machinery in the rear of his Mississippi
soda fountain, becoming the first to put Coca-Cola in bottles. Large scale bottling was made possible
just five years later, when in 1899, three enterprising businessmen in Chattanooga, Tennessee
secured exclusive rights to bottle and sell Coca-Cola. The three entrepreneurs purchased the bottling
rights from Asa Candler for just $1. Benjamin Thomas, Joseph Whitehead and John Lupton
developed what became the Coca-Cola worldwide bottling system

ACQUISITION
The company has a long history of acquisitions. Coca-Cola acquired Minute
Maid in 1960, the Indian cola brand Thumps - Up in 1993, and Barq's in 1995. In 2001, it acquired
the Odwallabrand of fruit juices, smoothies and bars for $181 million. In 2007, it acquired Fuze
Beverage from founder Lance Collins and Catania Partners for an estimated $250 million. The
company's 2009 bid to buy a Chinese juice maker ended when China rejected its $2.4 billion bid for
the Huainan Juice Group on the grounds that it would be a virtual monopoly. Nationalism was also
thought to be a reason for aborting the deal. In 1982, Coca-Cola made its only non-beverage
acquisition, when it purchased Columbia Pictures for $693 million. It sold the movie studio
to Sony for $3 billion in 1989.

REVENUE
According to the 2005 Annual Report, the company sells beverage products
in more than 200 countries. The report further states that of the more than 50 billion beverage
servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or
licensed to Coca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now
they serve 1.6 billion drinks every day). Of these, beverages bearing the trademark "Coca-Cola" or
"Coke" accounted for approximately 78% of the company's total gallon sales.
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Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

43% in the United States

37% in Mexico, India, Brazil, Japan and the People's Republic of China

20% spread throughout the rest of the world

In 2010, it was announced that Coca-Cola had become the first brand to top 1 billion in annual UK
grocery sales.

STOCK
Since 1919, Coca Cola has been a publicly traded company. One share of
stock purchased in 1919 for $40, with all dividends reinvested, would be worth $9.8 million in 2012,
a 10.7% annual increase, adjusted for inflation. In 1987, Coca Cola once again became one of the 30
stocks which make up the Dow, the Dow Jones Industrial Average, which is commonly referenced as
the performance of the stock market. It had previously been a Dow stock from 1932 to 1935. Coca
Cola has paid a dividend, increasing each year for 49 years. Stock is available from a direct purchase
program, through Computershare Trust Company, but unlike many programs, has investment fees.

ENVIRONMENTAL ISSUES
The company has been criticised on a number of environmental issues. An issue
with pesticides in groundwater in 2003 led to problems for the company when an Indian NGO,
Centre for Science and Environment, announced that it had found cancer causing chemicals in CocaCola as well as other soft drinks produced by the company, at levels 30 times that considered safe by
the European Economic Commission. This caused an 11 percent drop in Indian Coca-Cola sales. The
Indian Health Minister said the CSE tests were inaccurate, and said that the government's tests found
pesticide levels within India's standards but above EU standards. The UK-based Central Science
Laboratory, commissioned by Coke, found its products met EU standards in 2006. Coke and
the University of Michigan commissioned an independent study of its bottling plants by The Energy
and Resources Institute (TERI), which reported in 2008 no unsafe chemicals in the water supply,
though it criticized Coke for the impact of its water usage on local supply.

BOTTLERS
In general, The Coca-Cola Company and its subsidiaries only produce syrup
concentrate, which is then sold to various bottlers throughout the world who hold a CocaCola franchise. Coca-Cola bottlers, who hold territorially exclusive contracts with the company,
produce the finished product in cans and bottles from the concentrate in combination with filtered
water and sweeteners. The bottlers then sell, distribute and merchandise the resulting Coca-Cola
product to retail stores, vending machines, restaurants and food service distributors.

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One notable exception to this general relationship between The Coca-Cola Company and bottlers
is fountain syrups in the United States, where the company bypasses bottlers and is responsible for
the manufacture and sale of fountain syrups directly to authorized fountain wholesalers and some
fountain retailers.

OTHER SOFT DRINKS


The Coca-Cola Company also produces a number of other soft drinks
including Fanta (introduced circa 1941) and Sprite. Fanta's origins date back to World War II
when Max Keith, who managed Coca-Cola's operations in Germany during the war, wanted to make
money from Nazi Germany but did not want the negative publicity. Keith resorted to producing a
different soft drink, Fanta, which proved to be a hit, and when Coke took over again after the war, it
adopted the Fanta brand as well. The German Fanta Klare Zitrone ("Clear Lemon Fanta") variety
became Sprite, another of the company's bestsellers and its response to 7 Up.

SPONSORSHIP
Coca-Cola sponsored the English Football League from the beginning of
the 200405 season (beginning August 2004) to the start of 2010/11 season, when the Football
League replaced it with Power.
Along with this, Coca-Cola sponsored the Coca-Cola Football Camp, that took place in Pretoria,
South Africa during the 2010 FIFA World Cup, during which hundreds of teenagers from around the
world were able to come together and share their love of the game, partly due to Best Buy's efforts
through their @15 program.
Other major sponsorships include NHRA, NASCAR, the NBA, the PGA
Tour, NCAA Championships, the Olympic Games, the NRL, the FIFA World Cups and the UEFA
European Championships.
In the Philippines, it has a team in the Philippine Basketball Association, the PowerAde Tigers.

CONSUMER RELATIONS
Throughout 2012, Coca-Cola contributed $1,700,500 to a $46 million
political campaign known as "The Coalition Against The Costly Food Labelling Proposition,
sponsored by Farmers and Food Producers" This organization was set up to oppose a citizen's
initiative, known as Proposition 37, demanding mandatory labelling of foods containing genetically
modified ingredients. In the aftermath of the proposition's defeat at the polls, backers called for a
boycott of companies that contributed to the opposition campaign

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HEALTHY BEVERAGES
During the 1990s, the company responded to the growing consumer
interest in healthy beverages by introducing several new non-carbonated beverage brands. These
included Minute Maid Juices to Go, PowerAde sports beverage, flavoured tea Nestea (in a joint
venture with Nestle), Fruitopia fruit drink and Dasani water, among others. In 2001, Minute
Maid division launched the Simply Orange brand of juices including orange juice.
In 2004, perhaps in response to the burgeoning popularity of low-carbohydrate diets such as
the Atkins Diet, Coca-Cola announced its intention to develop and sell a low-carbohydrate
alternative to Coke Classic, dubbed C2 Cola. C2 contains a mix of high fructose corn
syrup, aspartame, sucralose, and Acesulfame potassium. C2 is designed to more closely emulate the
taste of Coca-Cola Classic. Even with less than half of the food energy and carbohydrates of standard
soft drinks, C2 is not a replacement for zero-calorie soft drinks such as Diet Coke. C2 went on sale in
the U.S. on June 11, 2004, and in Canada in August 2004. C2's future is uncertain due to
disappointing sales.

INDIAN START
The Coca-Cola Company re-entered India through its wholly owned
subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up
of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly
through a model that supports bottling operations, both company owned as well as locally owned and
includes over 7,000 Indian distributors and more than 2.2 million retailers. Today, these brands are
the leading brands in most beverage segments. The Coca-Cola Company's brands in India include
Coca-Cola, Fanta Orange, Limca, Sprite, Thumps Up, Burn, Kinley, Maaza, Minute Maid Pulpy
Orange, Minute Maid Nimbu Fresh and the Georgia Gold range of teas and coffees and Vitingo (a
beverage fortified with micro-nutrients).
In India, the Coca-Cola system comprises of a wholly owned subsidiary of
The Coca-Cola Company namely Coca-Cola India Pvt. Ltd which manufactures and sells
concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity,
namely, Hindustan Coca-Cola Beverages Pvt. Ltd; thirteen licensed bottling partners of The CocaCola Company, who are authorized to prepare, package, sell and distribute beverages under certain
specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising
of our customers, distributors and retailers. Coca-Cola India Private Limited sells concentrate and
beverage bases to authorized bottlers who are authorized to use these to produce our portfolio of
beverages. These authorized bottlers independently develop local markets and distribute beverages to
grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these
customers make our beverages available to consumers across India.
The Coca-Cola system in India has already invested USD 2 Billion till 2011,
since its re-entry into India. The company will be investing another USD 5 Billion till the year 2020.
The Coca-Cola system in India directly employs over 25,000 people including those on contract. The
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system has created indirect employment for more than 1, 50,000 people in related industries through
its vast procurement, supply and distribution system. We strive to ensure that our work environment
is safe and inclusive and that there are plentiful opportunities for our people in India and across the
world.
The beverage industry is a major driver of economic growth. A National
Council of Applied Economic Research (NCAER) study on the carbonated soft-drink industry
indicates that this industry has an output multiplier effect of 2.1. This means that if one unit of output
of beverage is increased, the direct and indirect effect on the economy will be twice of that. In terms
of employment, the NCAER study notes that "an extra production of 1000 cases generates an extra
employment of 410 man days."
As a Company, our products are an integral part of the micro economy
particularly in small towns and villages, contributing to creation of jobs and growth in GDP. CocaCola in India is amongst the largest domestic buyers of certain agricultural products.
As an industry which has strong backward and forward linkages, our operations
catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and
Industrial and agricultural products. Their operations also lead to incremental growth for enterprises
engaged in post-production activities like merchandising, marketing and sales. In addition, we share
best practices and technological advancements with our suppliers, vendors and allied industries
which often lead to improvement in the overall standards of quality across industries.
The Coca-Cola Company has always placed high value on good citizenship.
Our basic proposition entails that our Company's business should refresh the market; enrich the
workplace; protect and preserve the environment; and strengthen the community. We leverage our
unique strengths to actively support and respond to local needs -- be it the need for education, health,
water or nutrition. We have used our distribution network for disaster relief, our marketing prowess
to raise awareness on issues such as PET recycling, and our presence in communities to improve
access to education and potable water. The Coca-Cola India Foundation is now taking forward in the
community at large, projects and programs of social relevance to carry forward the message of
inclusive growth and development

PRODUCT LINE OF COCA-COLA


The coca-cola company in India has variety of products. The company has
more than 50 bottling plants that are spread all over the country. Coca cola has over 25000 system
employees in India and over 150000 indirect employees all over the country. Coca cola is a
company that has shown 29 consecutive quarter growth in India. Coca cola produces a huge variety
of products that deal in fruit juices health drinks sparkling water and other beverages. The products
are
1- Coca cola
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234567-

Thumps up
Maaza
Sprite
Fanta
Limca
Diet coke

The fruit related products are1234-

Minute maid pulpy orange


Minute maid nimboo
Minute maid apple
Minute maid guava

Some other products are


1- Kinley water
2- Kinley soda
3- Burn (health drink)

NAGPUR CITY
Superior drinks Pvt. Ltd. headed by Mr. Pradeep Agrawal established a bottling plant in Nagpur (at
M.I.D.C) industrial area in the year 1996, since then the company is operating on a large scale and
supplies to small towns and villages near Nagpur. The company only produces the glass bottles of the
following beverages-

Thumps up

Coca-cola

Maaza

Limca

Fanta

Sprite

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CHAPTER 3
PRODUCT PROFILE
The parent company of coca- cola manufactures a large number of flavours in their country and some
other countries, but in India less flavours are produced, on the other hand in Nagpur city a limited
number of flavours are produced.

The plant of coca cola in Nagpur only manufactures the glass bottles for beverages, the rest of the
products that come in plastic bottles (PET bottles) are transported from another plant to the factory in
Nagpur.
The plant is equipped with high-tech automatic machinery that helps in mass production.

The main products that are sold in Nagpur city by the coca-cola are
1.
2.
3.
4.
5.
6.
7.

Thumps up
Coca-cola
Maaza
Sprite
Fanta
Limca
Kinley soda
All these products are manufactured in quantities like 200ml and 350 ml.
The other PET bottles come from 600ml to 2l bottles.
The rest of the products that are not produced in Nagpur but are sold are
1. Kinley water
2. Minute maid (pulpy orange)
3. Minute maid (nimboo fresh)
4. Diet coke

PROFITABLE BRANDS ARE:


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300ml - Maaza, Coke, Sprite

600 ml - all brands

2 litre All brands

THUMPS UP

Thumps Up is a brand of cola in India. The logo is a red thumbs


up. It was introduced in 1977 to offset the expulsion of The Coca-Cola Company from India. The
brand was later bought by Coca-Cola who re-launched it in order to compete against Pepsi.
As of February 2012, Thumps Up is the leader in the cola segment in India, commanding
approximately 42% market share and an overall 15% market share in the Indian aerated waters
market.
Thumps up was originally product of Parle Group , later it was
purchased by coca-cola. Thumps up is comparatively stronger than that of its competitors. This
drink is more popular among the youth of the country.
In 1993 Coca-Cola re-entered India after a prolonged absence, spurring a
three-way Cola War with Thumps Up and Pepsi. That same year, Parle sold out to Coke for US$60
million. Some assumed Parle had lost the appetite for a fight against the two largest cola brands;
others surmised that the international brands' seemingly endless cash reserves overwhelmed Parle.
Thumps Up had 85% market share when sold.

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COCA COLA

Coca-Cola is a carbonated soft drink sold in stores,


restaurants, and vending machines throughout the world. In India, Coca-Cola was the leading
soft-drink till 1977 when the government policies necessitated its departure. Coca-Cola made
its return to the country in 1993 and made significant investments to ensure that the beverage
is available to more and more people, even in the remote and inaccessible parts of the nation.
The Coca-Cola Company also sells concentrate for soda fountains to major restaurants
and food service distributors.
This drink is not popular among any single age group but with everyone.

MAAZA

Maaza is a Coca-Cola fruit drink brand marketed in India and


Bangladesh, the most popular drink being the mango variety so much that over the years, the Maaza
brand has become synonymous with Mango. Initially Coca-Cola had also launched Maaza in orange

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and pineapple variants, but these variants were subsequently dropped. Coca-Cola has recently relaunched these variants again in the Indian market.
Mango drinks currently account for 90% of the fruit juice market in India. Maaza currently
dominates the fruit drink category and competes with Pepsi's Slice brand of mango drink and Frooti,
manufactured by Parle Agro.

SPRITE

Sprite is a colourless, lemon-lime flavoured, caffeine-free soft drink,


created by the Coca-Cola Company. It was introduced in the United States in 1961. This was Coke's
response to the popularity of 7 Up. Since its inception is 1999, Sprite has not only established itself
as a brand which successfully boasts it's 'cut-thru' perspective with an authentic, edgy, irreverent,
urban and straight forward style, but has also achieved status of an undisputed youth 'badge' brand.
Today Sprite is the most preferred and fastest growing soft drink in India and has become the second
largest soft drink in 2009, aiming for the No.1 spot.

FANTA

Fanta is a global brand of fruit-flavoured carbonated soft


drinks created by The Coca-Cola Company . The drink originated in Germany in 1941. Fanta
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entered the Indian market in the year 1993. Perceived as a fun youth brand, Fanta stands for
its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings but also
helps free spirit thus encouraging one to indulge in the moment. Fanta is also a favourable
drink amongst the youth of the country. The tag line for fanta is itself fun time fanta time.

LIMCA

Limca is a lemon and lime flavoured carbonated soft drink made


primarily in India and certain parts of the U.S. Born in 1971, Limca has remained
unchallenged as the No.1 Sparkling Drink in the Cloudy lemon Segment. The success
formula is the sharp fizz and lemoni bite combined with the single minded proposition of the
brand as the provider of "Freshness". Limca also publishes the Limca Book of Records, a
record book similar to the Guinness Book of Records, The Limca Book of Records details
feats, records and other unique statistics from an Indian perspective.

KINLEY WATER

Kinley water comes with the assurance of safety from The CocaCola Company. That is why we introduced Kinley with reverse osmosis along with the latest
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technology to ensure purity of our product. Because we believe that right to pure, safe drinking
water. This was introduced to capture another segment of Indian market that is the packed drinking
water. Since its launch in India this product has been a huge success and has generated a huge
volume of sales for the company. This product has its main competition from aquafina, bisleri , and
some other local brands. Kinley in itself is a brand having different products in its line like kinley
soda, juice, etc.

MINUTE MAID (PULPY-ORANGE)

Product I Minute Maid is a product line of beverages, usually


associated with lemonade or orange juice, but now extends to soft drinks of many kinds, Minute
Maid one of the world's largest juice and juice drink brands. The history of the Minute Maid brand
goes as far back as 1945 when the Florida Food Cooperation developed orange juice powder. They
branded it Minute Maid, a name connoting the convenience and the ease of preparation (in a minute).
This product of the company has a decent amount of sales in Nagpur city and generates a good sales
for the company. This product in not manufactured in Nagpur city but brought from the other plants
that specialises in production of minute maid.

KINLEY SODA

Kinley is a brand of still or carbonated water owned by The


Coca-Cola Company and sold in many large European and Asian countries.
Its carbonated forms are used for mixers, and also available in a variety of fruit flavours.
Launched in 2002 Kinley soda today is no.1 national Soda brand.
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CHAPTER - 4
OBJECTIVE
The main objective behind this project is to study and understand
distribution channel and its effectiveness in bringing products in right time to right customers
To study the main objective the following are the necessities:
1- The performance level of the existing distribution channel.
2- The coverage area of the distribution system.
3- Problems related to the existing channel.
4- Satisfaction level of the customers (retailers) towards the existing distribution channel.
5- To check if the product is made available at right point of time.
6- To check the co-ordination between the factory distributer and the retailer during off season
and peak season.

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CHAPTER - 5
SCOPE OF THE STUDY

The study will confront me the following:


1- The working culture of the company.
2- Their distribution system.
3- The co-ordination among the distributer, retailer and the factory.
4- The efficiency of the distribution system.

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CHAPTER - 6

LIMITATIONS OF THE STUDY

The limitations to the study are:-

1- Due to time constrain the study is limited to the distribution system for Nagpur city only.
2- The study is also limited to the information provided by the factory and its sources.
3- The study does not include the small towns around Nagpur like Bhandara, Kamptee.

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CHAPTER 7
DATA ANALYSIS
The products are manufactured and sold to earn maximum profits. This is done
through a specific procedure i.e. INVENTORY FLOW
INFORMATION FLOW
SUPPLIERSPROCUREMENT
customer

PROCESSING

DISTRIBUTION

This is the basic way of producing and then distributing goods. Distribution is very keen feature. For
any company the distribution system and the distribution network is very important and has one of
the most important value. The company has a unique distribution system for the Nagpur city.

THE COMPANY HAS SOME CRITERIA FOR SELECTION OF ITS


DISTRIBUTERS
12345-

Vehicles
Manpower
Deposit for cases/crates at the rate of 200 each
Liquid value
He should have his godown

There are a total six distributers that distribute products in Nagpur.


1- One only for plastic bottles of the drinks.
2- Two are the mega distributers and they sell mix packing.
3- And the rest for mix supplies.

Routing & Scheduling:


The two most important elements for any distribution channel.

Routing
Is the process of selecting paths in a network along which to send network traffic. Routing is
performed for many kinds of networks, including the telephone network, electronic data networks
(such as the Internet), and transportation (transport) networks. This article is concerned primarily
with routing in electronic data networks using packet switching technology. Routing, in a more
narrow sense of the term, is often contrasted with bridging in its assumption that network addresses
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are structured and that similar addresses imply proximity within the network. Because structured
addresses allow a single routing table entry to represent the route to a group of devices, structured
addressing (routing, in the narrow sense) out performance structured addressing (bridging) in large
networks, and has become the dominant form of addressing on the Internet, though bridging is still
widely used within localized environments.

Scheduling
Is the process of ensuring whether the delivery of consignment will be on time or not. At CocaCola India, for Nagpur operations they schedule as per the market and dealer requirements.

FACTORS INFLUENCING THE ASSIGNMENT OF AREAS TO DISTRIBUTORS


SALESMAN
An average number of outlets the salesman effectively works on. A
salesman can handle 60 outlets on an average effectively in a day.
Depending on the frequency of a particular route. The distributors follow three types of frequencies,
they are
1- Daily
2- Alternate days
3- Once a week
The company gives target to the distributors and these distributors with
help of sales executives break the target into
1- Daily
2- Weekly
3- Brand wise
4- Sales wise
Here the distributor focuses on weaker brands and tries to push maximum
number of these weaker units into the mixed cases ordered by the retailers. For Ex: The sales of
Fanta are considered to be low then the distributor adds more number of Fanta units in a mixed case.

THE ROLE OF DISTRIBUTOR IN MARKET:


The distributors salesman is trained properly with respect to his behaviour with the retailers. As soon
as the vehicle goes to the outlet it is the duty of the sales person to
12345-

Greet the retailer and have a look at the cooler/refrigerator.


He has to suggest the retailer about the stock needed
Convince him for purchase
Place the products in the cooler as per brand order
Look at the warm displays

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6- Follow up and handle complaints

SUPPORT FROM THE COMPANY TO THE DISTRIBUTOR


The company supports and motivates the distributers by giving them incentives in the form of
1234-

Holiday packages
Monetary benefits
Discounts
Gifts

DISTRIBUTION MODELS FOLLOWED BY THE COMPANY


There is only two type of distribution pattern that the company follows
when it comes fot only Nagpur city they are
1- Mega distribution model
2- Regular distribution model

MEGA DISTRIBUTION MODEL


In this model, the expenses that occur from the dispatch of goods from
factory till it reaches the retailers is paid by the distributer. These charges include
1234-

Freight charges
Diesel expenses
Driver and his helper expenses
Loading and unloading charges.

These are paid by the distributer initially and later on they get a refund from company @ 18/- per
crate. If the expenses increase from this level then company checks the reports, bills, and the
amount of goods distributed to the retailers by the distributer and then pays accordingly. The
distributers that follow this model generally deal in very large quantity.

REGULAR DISTRIBUTION MODEL


This is the regular model of distribution that the company follows for
the distribution of its products from the factory to the retailers. In this method some expenses are
paid buy the company, like
1- Vehicle charges
2- Diesel expenses
3- Maintenance of vehicle

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The rest of the expenses that the distributer occurs in the distributing the
goods to its retailers are paid by them. These expenses include
1- Driver and helper expense
2- Loading and unloading expenses
3- Other miscellaneous expenses.

SUPLLY CHAINS FOR NAGPUR CITY


As the factory in Nagpur produces only glass bottles of the
beverages, but distribute both packing of bottles i.e. glass and plastic, the company has two types
of chains for supplying goods
1- ONE FOR ONLY GLASS BOTTLED BEVERAGES
2- SECOND FOR BOTH GLASS AND PLASTIC BOTTLED BEVERAGES

FOR GLASS BOTTLED BEVERAGES-

PLACING THE
ORDER

CLEARANCE FROM
FINANCE DEPARTMENT

TRANSPORTATION

DISTRIBUTER

CUSTOMERS

CONSOLIDATION
OF PRODUCTS

TRANSPORTATION

RETAILORS

1- Placing the order - In the above model the procedure of distribution starts when a distributer
places his order via telephone to the factory in Nagpur. He first takes the order from his retailers
and combines the orders of his huge number of retailers and places the order in the factory.
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2- Clearance from financial department - After placing the order the details are sent to the
finance department for the approval and to check if any back log is there in payment of previous
orders. As distributers have placed a huge quantity of order it becomes necessary for finance
department to give a clean chit of the next order of the distributer.
3- Consolidation of products- Once the finance department gives clearance for the order the
company starts to consolidate the different variety of beverages into one place. As the company
produces more than one flavour of drinks consolidation becomes an important factor. Distributer
demand for different flavours of drinks in different quantities thus they need to be stacked at
single place
4- Transportation- After this procedure the crates of beverages into the trucks and then they are
transported to the distributers warehouse. The different flavours of drinks are loaded in a truck
provided by the factory is sent to the warehouse of the distributer. The facility of transportation
of goods is only provided by the company from factory to the warehouse after this its the
responsibility of the distributers to supply it further to its retailers.
5- Distributer- Once the goods reach the distributers warehouse, with the help of order sheet he
then divides the crates of the bottled beverages into smaller lots. The demand of each retailer is
different, thus it becomes very necessary for distributer to divide the goods differently for
different retailers.
6- Transportation- The retailers own their own trucks (407) in which the transport the bottles to
their respective retailers. A specific area is targeted and the driver is given the list of products
that are to be given to different retailers. He is accompanied by a helper and loader and
unloader. When they provide the retailer with beverages they also take back the empty bottles of
the beverages with they in return supply to the company.
7- Retailers - Once the retailers get their desired quantity of beverages they sign the memo and
give it back to the driver as a token of acceptance for the good that he has received. The only job
of the retailer is left is to sell the products to the customers.

FOR BOTH GLASS AND PLASTIC BOTTLED BEVERAGES

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PLACING ORDER IN
OTHER FACTORY
FOR
Page 32
CLEARANCE
FROM
PLASTIC BOTTLED
FINANCE
DEPARTMENT
BEVERAGES

STUDY OF DISTRIBUTION CHANNEL OF COCA-COLA FOR NAGPUR CITY

PLACING THE
ORDER

TRANSPORTATION OF
GOODS TO NAGPUR
FACTORY

CONSOLIDATION
OF PRODUCTS

TRANSPORTATION

RETAILORS

TRANSPORTATION

DISTRIBUTER

CUSTOMERS

1- Placing the order - In the above model the procedure of distribution starts when a distributer
places his order via telephone to the factory in Nagpur. He first takes the order from his retailers
and combines the orders of his huge number of retailers and places the order in the factory.
2- Clearance from financial department - After placing the order the details are sent to the
finance department for the approval and to check if any back log is there in payment of previous
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orders. As distributers have placed a huge quantity of order it becomes necessary for finance
department to give a clean chit of the next order of the distributer.
3- Placing the order in other factory for plastic bottled beverages- As the factory in Nagpur
produces only glass bottled beverages; the company places the order of pet bottles in its other
factories in Jabalpur and Bilaspur. When Nagpur based factory receives order for pet bottles it
places the order in these two factories to meet the demands of the distributer.
4- Transportation of goods to Nagpur factory- Once the order gets cleared from other factories
the goods are transported to Nagpur factory via trucks in large quantity. The trucks and vehicles
used for this purpose are the company owned trucks. All the goods are separated according to
their flavours and stacked in factory at the storage area.
5- Consolidation of products- Once all kinds of products reach the factory premises, the company
starts to consolidate the different variety of beverages into one place. As the company produces
more than one flavour of drinks consolidation becomes an important factor. Distributer demand
for different flavours of drinks in different quantities thus they need to be stacked at single place
6- Transportation- After this procedure the crates of beverages into the trucks and then they are
transported to the distributers warehouse. The different flavours of drinks are loaded in a truck
provided by the factory is sent to the warehouse of the distributer. The facility of transportation
of goods is only provided by the company from factory to the warehouse after this its the
responsibility of the distributers to supply it further to its retailers.
7- Distributer- Once the goods reach the distributers warehouse, with the help of order sheet he
then divides the crates of the bottled beverages into smaller lots. The demand of each retailer is
different, thus it becomes very necessary for distributer to divide the goods differently for
different retailers.
8- Transportation- The retailers own their own trucks (407) in which the transport the bottles to
their respective retailers. A specific area is targeted and the driver is given the list of products
that are to be given to different retailers. He is accompanied by a helper and loader and
unloader. When they provide the retailer with beverages they also take back the empty bottles of
the beverages with they in return supply to the company.
9- Retailers - Once the retailers get their desired quantity of beverages they sign the memo and
give it back to the driver as a token of acceptance for the good that he has received. The only job
of the retailer is left is to sell the products to the customers.

The basic difference between these two procedures is only the bottles of
beverages that are ordered from the other factories of coca cola in Bislaspur and Jabalpur. These
are the other two cities where the franchise owner of coca cola is same. These two plants
manufacture the glass bottled beverages of coca- Cola Company. The plastic packing consists of the
following quantities

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1- Maaza - 200ml tetra pack, 600ml, 1.2L plastic.
2- Kinley water - 1L plastic.
3- Other beverages 600ml, 1.23L, 2L plastic

DISTRIBUTORS ROUTE PLANNING :


Distributors identify two routes they are,
1- Potential route
2- Non Potential route

Note: For Potential the vehicle goes daily and for non potentials it goes once in a week
The potential routes are those routes in which the distributor gets maximum
business as the number of outlets will be more and therefore the vehicle goes daily to meet the
market demand.
Ex: If a distributor has 400 outlets in his area he has to plan accordingly as per his route wherein he
has to visit 60 outlets per route.

DISTRIBUTION IN SEASON TIMES (SUMMERS)


Distribution is very important and keen function especially when it comes
to distribution during the season time. Beverages have their season during summers. At this point
of time distribution of good on time becomes a very crucial phenomenon. The sales of products
are largely affected if there is any delay in distributing goods. During this season the distributers
and the company hire vehicles for transporting the products. This helps to save timeand increase
the speed of transportation during the peak season.

OTHER WORK OF DITRIBUTERThe distributer not only does the work of distributing the products to retailers
but also does some other value added works like1- Credit to the retailers.
2- Transporting empty bottles to factory.
3- Helps Company to know public demand.

WORK OF RETAILERS
Retailers are the most important key in the channel of distribution of any
commodity, as they are the people who actually sell the products to the end user. The main works
of retailer are
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1- The main aim of the retailers is to sells products and earns maximum profits.
2- Retailers help the company to know the market demand and also help them in producing right
amount of goods at right time.
3- Retailers are also provided with banners, refrigerators that also act as the advertisement for
the companys product.
4- Retailers are also provided with banners, refrigerators that also act as the advertisement for
the companys product.
5- Retailers help the company to survive in the market and earn profits.

CHAPTER 8
FINDINGS

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1- There are three factories that coordinate between each other situated in Nagpur, bilaspur and
Jabalpur.
2- Most of the outlets in Nagpur are shared; they sell beverages of each and every company.
3- The basic problem is that the supply from the plant to the depot and then to the distributors
takes a long time due to which the distributors are not in the position the supply the required
quantity to the retailers.
4- The sales people and the distributor have maintained good relationship with the retailers.
5- The problem in the distribution system arises only during the peak season of the supply that is
the time period from March to June. This is the time when the demand for the products is
very high thus; the supply plays an important role at this point of time.
6- Though the company manages two different types of supply chain systems, the factory still
have a control over its supply at makes it sure that the products reach the distributers on time.
7- The factory in Nagpur only produces the glass bottled beverages. All the other packaging of
beverages is done in other factories located at Bilaspur and Jabalpur.
8- The factory in Nagpur is also preparing to make a unit that would manufacture plastic bottled
beverages of coca-cola and its other beverages. This would increase the production and
would help in fast and better supply for beverages to the distributers.
9- There is perfect coordination between these three factories.

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CHAPTER 9
SUGGESTIONS AND RECOMMENDATIONS
The distribution system that the coca cola company adopts for the distributions of products in the city
is effective but can be approved. Some suggestions that I could observe are
1- The products must be provided by the company to distributers on time and the same should
be done by the distributors in respect to retailers.
2- During the peak season the company most keep a stock of goods before hand to meet the high
demands during that season.
3- The company must give more incentives to its existing customers and try to capture more
ground.
4- The company can convert the hubs for pepsi into their own brand i.e coke by giving them
good schemes like discounts, offers, packages, etc.
5- The company must encourage its distributers for improving sales and deliver the goods
quickly to its retailers.
6- The company can increase the production by getting more machinery and setting up new
plants to meet the increasing demand.

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CHAPTER - 10
CONCLUSIONS
1- Distribution Channel plays a very important role especially with respect to the soft drink
industry.
2- The product has to be made available on time to the consumers, otherwise they will switch on
to other brands and the company will lose its market share.
3- Thus an effective distribution channel is the needed in this industry.
4- There is a huge competitions in this industry with compared to other brands its substitutes
and also the local refreshments that are available. Thus, distribution becomes an important
factor. \
5- The distribution channel of Coca Cola Company is effective. It helps to fulfil the market
demand and also tries to expand the market share of the company.
6- People prefer coca-cola and its product over pepsi and other its rivals
7- Thumps-up a brand of coca-cola has more than 40% market share in India.
8- As the factory in Nagpur follows two different types of supply chains for Nagpur city it
becomes very easy for them to manage the affairs of transportation.
9- The company doesnt maintain huge fleet of trucks and its driver and helpers. Sometimes
they prefer to outsource their work.
10- With the fully automatic machinery and a good labour force the company manages to fulfil
the demands of market on time and manages to maintain its brand image in the market.

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STUDY OF DISTRIBUTION CHANNEL OF COCA-COLA FOR NAGPUR CITY

CHAPTER - 11
BIBLIOGRAPHY
All the information needed to complete this project is obtained from the following sources:
1- Coca-cola Nagpur factory Superior Drinks Pvt. Ltd.
2- Sources from the Nagpur factory.
3- Company website www.coca-cola.com.
4- V.V Sople- Logistic Management- Dorling Kindersley(India) Pvt.Ltd.

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