NEW DELHI INSTITUTE OF MANAGEMEN

T
PAPER 403
PGDM PROJECT STUDY PROPOSAL

1. Name of the Student : Vishnu Prasad K B

2. Roll No. : 371

3. Major 1 Area of Specialisation : Marketing

4. Major 2 Area of Specialisation : Operations and

Logistics

5. Title of the Project(in Major 2 Area) : Application of Hub

and Spoke strategies in Supply chain management

6. Abstract : *Annexure 1

7. Chapter Design : *Annexure 2

8. Organisation / Industry etc. under reference : Beverage

9. Methodology**to be followed : *

10. Sources of Data : Both primary and secondary

data from company

____________________ __________________
______________________
(Signature of the Student) (Signature of the Guide)
(Signature of the Director/Registrar)
Date: Date: Date:
ANNEXURE 1:
ABSTRACT:
In his landmark book The Fortune at the Bottom of the Pyramid, C.K.
Prahalad describes the profits that can be earned by selling products to
Bottom of the Pyramid customers. While there is truth to this, companies
face unique challenges when operating in the rural regions of emerging
markets where many of these customers live. For example, the consumer
population is dispersed over a wide geographic area, transportation
infrastructure is often poorly developed, and many consumers have sporadic
and extremely low incomes. For a successful marketing strategy in rural
markets, the product or brand needs to be backed by strong distribution
network and sustainable technology. Once COCA-COLA entered the rural
market; it focused on strengthening its distribution network there. It realized
that the centralized distribution system used by the company in the urban
areas would not be suitable for rural areas. COCA COLA realized that this
distribution system would not work in rural markets, as taking stock directly
from bottling plants to retail stores would be very costly due to the long
distances to be covered. The company instead opted for a hub and spoke
distribution system.

Consumption of non-alcoholic beverages is expected to increase by 16.5-

19% over the next three years as more people are trading up to packaged
drinks, according to a report by the Indian Council for Research on
International Economic Relations (ICRIER) and the Indian Beverage
Association (IBA) .The food processing industry in India has a total turnover
of around USD 65 billion which includes value added products of around USD
20.6 billion. The beverage industry in India constitutes of around USD 230
million among the USD 65 billion food processing industry. Coca cola has
accounted for a thriving growth since its inception. It occupies around 60
percent of the carbonated drink sector in the Indian beverage industry.
Indian Food Industry to be $300 billion by 2015 from the present $200 billion.
About 25% in organised and 75% in unorganised. Non-alcoholic beverages
market around $5 billion. Health beverages market is $300 million and is the
fastest

ANNEXURE :2

Chapter Design

Chapter I Introduction to Organization

Coca-Cola India, is one of the countrys leading beverage companies, offering

a range of healthy, safe, high quality, refreshing beverage options to

consumers. Over the last 23 years, ever since its re-entry in 1993, the

company has gone on to establish an unmatched portfolio of beverages;

refreshing consumers with its leading beverage brands like Coca-Cola, Coca-

Cola Zero, Diet Coke, Thums Up, Fanta, Fanta Green Mango, Limca, Sprite,

Sprite Zero, VIO Flavored Milk, Maaza, Minute Maid range of juices, Georgia

and Georgia Gold range of hot and cold tea and coffee options, Kinley and

Bonaqua packaged drinking water, Kinley Club Soda and BURN energy drink.

The Company along with its bottling partners, through a strong network of

over 2.6 million retail outlets, touches the lives of millions of consumers. Its

brands are some of the most preferred and most sold beverages in the

country.
 Chapter II Literature Review

Methedology/Frame
Variables
Paper Name Objectives/Scope work

To know Brand shortage,

HUB AND SPOKE difference Sales effort by

MODEL( August 16 between spoke Systematic sampling Sales Executive,

2014) area and non- Trade margin of

spoke area the retailers

RESEARCH ON
Behavioural of
HUB-AND-SPOKE
the
LOGISTICS Optimization of
distributer/spok
NETWORK DESIGN Hub-And-Spoke Deliberate sampling
es, Delayed in
WITH IMPEDANCE Logistics Network
the payment by
EFFECT( May 4,
the retailer
2009)
 Urban
DEVELOPMENT OF A
transportation;
HUB AND SPOKE
Noticeable savings Bus transit;
MODEL FOR BUS
in operator cost Routes; Hub
TRANSIT ROUTE
along with slight and spoke
NETWORK
increase in user network;
DESIGN( 2013 The
cost. Optimization;
Authors. Published

by Elsevie) Genetic

algorithm

Chapter III Relevancy of the Study

It Helps in

Distribute products in areas not easily accessible to distributers.

Increased availability of products in more areas results in Volume growth.

Strengthening distribution network/Numeric distribution.

Numeric distribution shows the reach of products. It is defined as The

percentage of stores that sock a given brand or SKU, within The universe of

stores in the relevant market. With efficient Distribution, products are made

available in more outlets.

New market development

Market penetration
 Inaccessible territory

Cost effectiveness, transport efficiency

Chapter IV Problem Identification and Study Objectives

While the fastest growth and development of FMCG sector, Key area of

research to know different between Hub, Spoke area and Non Spoke area.

70% of the Indian lives in rural India so it is important to penetrate rural

market effective and efficiency. According to current census India have

1.2367 Billion in 2012; Rural 845.1517 Million in 2012 but coke has 7000

Indian distributors and more than 2.2 million retailers. These numbers of

retail outlets of covered only 0.17% of population. So, for the increase the

reach of Coke company Started Hub and Spoke Model in 2012. Company

Targets its reach to 10% by 2020 in India.

The study is limited to only one small place. It is suggested that to carry out

research in a larger scale to find out results across regions. This study is

focused on distributers and spokes of only one small region

Chapter V Methodology

Types of research: Causal Research

Sources of Data : Primary data

Number of samples: 100

Type of sampling: Random

Statistical tool for analysing: Factor Analysis

Chapter VI Data analysis and interpretation

Chapter VII Recommendation and Conclusion

Organisation under reference: Indian Railways

Methodology to be followed: Factor Analysis

Bibliographical References :

1. Research Methedology Methods and Techniques by C. R. Kothari

2. Pearson Bussiness Statistics
3. http://www.sciencedirect.com/science/article/pii/S1877042813045692
4. https://www.pomsmeetings.org/ConfPapers/011/011-0370.pdf
5. http://boston.uli.org/uli-in-action/infrastructure/