You are on page 1of 73

A PROJECT WORK ON THE STUDY OF

IMPLEMENTATION OF (RED)
RIGHT EXECUTION DAILY IN
COCA-COLA OUTLETS
AT
HINDUSTAN COCA-COLA PVT LTD.

SUBMITTED IN
PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD FOR THE DEGREE

OF

MASTERS OF BUSINESS ADMINISTRATION


IN
MARKETING

UNDER THE GUIDANCE OF


PROF.M. USHA AND MRS.MADHAVI RAO
FACULTY OF MARKETING
BY
N.VENKATESH

NIZAM COLLEGE
(AFFILIATED TO OSMANIA UNIVERSITY)

DECLARATION
I HEREBY DECLARE THAT THIS PROJECT REPORT TITLED IMPLEMENTATION OF (RED)
RIGHT EXECUTION DAILY IN COCA-COLA OUTLETS SUBMITTED BY ME TO THE

DEPARTMENT OF BUSINESS MANAGEMENT, O.U., HYDERABAD, IS A BONAFIDE WORK

UNDERTAKEN BY ME AND IT IS NOT SUBMITTED TO ANY OTHER UNIVERSITY OR

INSTITUTION FOR THE AWARD OF ANY DEGREE DIPLOMA / CERTIFICATE OR PUBLISHED ANY

TIME BEFORE.

NAME OF THE STUDENT SIGNATURE


OF THE STUDENT
Certification

THIS IS TO CERTIFY THAT THE PROJECT REPORT TITLE Implementation of


(RED) Right Execution Daily in the Outlets OF HINDUSTAN COCA-COLA
BEVERAGES PVT LTD SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF MBA
PROGRAMME OF DEPARTMENT OF BUSINESS MANAGEMENT, O.U. HYDERABAD, WAS

CARRIED OUT BY MR N.VENKATESH FINAL YEAR MBA OF NIZAM COLLEGE UNDER MY

GUIDANCE. THIS HAS NOT BEEN SUBMITTED TO ANY OTHER UNIVERSITY OR INSTITUTION
FOR THE AWARD OF ANY DEGREE/DIPLOMA/CERTIFICATE.

NAME OF THE GUIDE


SIGNATURE OF THE GUIDE
Abstract

This Project was carried out with an intention to know and understand the facts,
of what makes Hindustan Coca-Cola beverages Pvt ltd No.1 against its
Competitor Pepsi Co in India. In this pursuit, a study at Hindustan Coca-Cola Pvt
ltd in the marketing area, was carried out as it is the key for its Success. During
the study, Retail Outlets of Coca-Cola were visited and observe Sales
representatives work, one of their key strengths is the ability to achieve quality
in-store execution, They believe this direct interaction with the customers gives
them a competitive advantage in activating points of purchase and creating
value for both our customers and the business.

The strategy (I SEE, I WANT, I DRINK) is the AIDAS approach of Coke, primarily
meant to grab the attention of the consumer the objective is to monitor the
merchandising standards in the outlet which are the activation elements like the
signage for the retail outlet, keeping the Cooler in the Primary Position, brand
visibility and availability both in the Cooler and the shelf etc. Therefore,
Execution is the focus point of RED

In the pursuit of excellence in marketplace execution, Coke has implemented a


programme they call Right Execution Daily (RED). This programme monitors,
at the individual outlet level, how well the merchandising standards are
implemented and maintained. Furthermore, it helps Coke to identify any
opportunities to make immediate improvements that support growth for the
customers and themselves.

This study is pursued with an objective to know if the customer (retail outlet) is
aware of the importance of keeping the cooler in the hot spot (Prime position)
and the effects of product visibility in the shelf or for the matter maintain the
brand order in the cooler. In order to draw certain conclusions a survey is done
with fourteen questions pertaining to RED norms stated for the outlet modeling.
Data was interpreted through statistical tools and hypotheses

It was discovered after the survey that customers are observing the effects of
remodeling the entire store with activation elements like increase in sales,
outlets owners say that "Jo Dikhta Hai Woh Bikta Hai". Also seen during the
observation that there is a shortage of stock in certain brands. Coke is not
able to keep up with the demand during the season which is really unfortunate
though they can forecast it.

ACKNOWLEDGEMENT

I AVAIL THIS OPPORTUNITY TO EXPRESS MY DEEP SENSE OF GRATITUDE TO ALL THE PEOPLE

WHO HAVE HELPED ME TO CARRY OUT AND COMPLETE THIS PROJECT IN PARTIAL

FULFILLMENT OF MY M.B.A. DEGREE CURRICULUM.

I AM GREATLY INDEBTED TO DR.M. USHA COORDINATOR, MBA NIZAM COLLEGE,


HYDERABAD, FOR THE VALUABLE SUPPORT AND GAVE ME AN OPPORTUNITY TO UNDERTAKE

THIS PROJECT WORK.


I WISH TO EXPRESS MY HEARTFELT THANKS TO ALL FACULTY MEMBERS ESPECIALLY MRS
MADHAVI OF NIZAM COLLEGE FOR THE HELP PROVIDED BY THEM TO CARRY OUT THIS

PROJECT.

IT HAS BEEN OF INESTIMABLE PLEASURE AND PRIVILEGE TO EXPRESS MY HEARTFELT

GRATITUDE, ADMIRATION AND SINCERE THANKS TO MR. G.SATYA BHASKAR (SALES


TEAM LEADER) OF HINDUSTAN COCA-COLA PVT LTD.

I ALSO WISH TO THANK ALL THE EMPLOYEES OF HINDUSTAN COCA-COLA PVT LTD. WHO
HELPED ME TO CARRY OUT THIS PROJECT.

I WISH TO EXPRESS MY HEARTFELT THANKS TO ALL MY FRIENDS AND WELL-


WISHERS WHO HAVE HELPED ME IN THE PROCESS OF UTILIZING THIS OPPORTUNITY

TABLE OF CONTENTS
CHAPTER1. INTRODUCTION
P.NO

1.1 NEED FOR THE STUDY


01
1.2 GENERAL INTRODUCTION
02
1.3 OBJECTIVES OF THE STUDY
03
1.4 PLAN OF THE STUDY
03
1.5 SCOPE OF THE STUDY
04
1.6 RESEARCH METHODOLOGY
04
1.7 HYPOTHESES
05
1.8 SOURCES OF INFORMATION
06

CHAPTER2. THE COMPANY

2.1 COMPANY PROFILE


08 – 15
2.2 COCA-COLA ADVERTISING
16 – 20
2.3 BOTTLING OF COCA-COLA
21 – 22
2.4 COCA-COLA IN INDIA
23 – 26
2.5 VARIOUS BRANDS OF COCA-COLA
27 – 35

CHAPTER3. RIGHT EXECUTION DAILY (RED)


3.1 ANALYSIS OF RED IMPLEMENTATION
36 – 41

CHAPTER4. DATA ANALYSIS

4.1 GRAPHS AND INTERPRETATION


42 –50

CHAPTER5. SUMMARY AND CONCLUSIONS


5.1 FINDINGS
51
5.2 CONCLUSIONS
52
5.3 IMPLICATIONS
52
5.4 RECOMMENDATIONS
53
5.5 LIMITATIONS
54

CHAPTER6. QUESTIONNAIRE
55

BIBLIOGRAPHY
56

Table of Figures

Fig No Name of the Figure


P.No
4.1 Monopoly in the market
42
4.2 Number of RED & Non-RED Outlets in SEC area
43
4.3 Type of Cooler used {Company Cooler, OYA, Family
Fridge 44
4.4 Is the Cooler in the Primary Position
45
4.5 Purity of the Cooler
46
4.6 Brand Availability in Cooler and the Shelf
47
4.7 Activation Elements in the Outlet
48
4.8 Brand Order maintained in the Cooler
49
4.9 Is Customer aware of RED norms
50
CHAPTER -I

Need for the study

General Introduction

Objectives of the study

Plan of the study

Scope of the study

Research methodology

Hypotheses
Sources of information

(1.1)Need for the Study

Sales and distribution is an integral part of marketing. Here, Coca Cola the
leading brand in soft drinks worldwide, has maintained its brand image
with high precision. The marketing strategy of Coke is very severe than
others. To understand the strategies or techniques that the company
adopts to make business with the customers (retailors) visiting the Outlets
with ESM and MD to observe them work with the Outlets because they are
the intermediaries (Outlet) through whom shoppers make their purchasing
decisions. Right Execution Daily (RED) as they call it focuses on the In
store Execution by the MD or ESM, which is an important part of the
strategy because mere delivery would not affect the movement of the
product to the final consumer or increase the secondary sales.

Moreover, better demand forecasting and access to real-time inventory


data at the stock keeping unit (SKU) level in the outlets and warehouses,
enable to reduce stock shortages in the marketplace and decrease
inventory write offs. Furthermore, the ability to manage the sales order
and route planning processes to optimize overall sales efficiency and
effectiveness, while improving the ability to forecast, plan and execute.

It is my gratitude to work with Coca Cola Company especially in marketing


department. A comprehensive study was conducted to know the
marketing strategies’ adopted by the Coke and to know about the
products sales. Further, it is also to understand the availability of the
product, to check out advertising of the product, and to know the working
condition of the visi cooler provided by the company.

Thus, these were the main reasons for conducting this study.
Rationale for the Study: This is a live project undertaken at Hindustan
Coca-Cola Pvt ltd to understand the practical knowledge of corporate
world where advanced theoretical knowledge is backed up by practical
experience on the job. Coca cola is one of the biggest brand in beverages
in the world. The project provides a bridge to understand the theoretical
aspects in sales & distribution to practical execution of sales &
distribution, an opportunity to learn the strategy they call (RED) Right
Execution Daily, which in theory is AIDAS approach of Coca-Cola.

(1.2) General Introduction

Promotion is one of the four elements of marketing mix (product, price,


promotion, distribution). It is the communication link between sellers and
buyers for the purpose of influencing informing, or persuading a potential
buyer's purchasing decision

Above the line promotion: Promotion in the media (e.g. TV, radio,
newspapers, Internet, Mobile Phones, and, historically, illustrated songs)
in which the advertiser pays an advertising agency to place the ad
Below the line promotion: All other promotion. Much of this is intended to
be subtle enough for the consumer to be unaware that promotion is taking
place. E.g. sponsorship, product placement, endorsements, sales
promotion, merchandising, direct mail, personal selling, public
relations, trade shows

Sales promotions can be directed at either the customer, sales staff, or


distribution channel members (such as retailers). Sales promotions
targeted at the consumer are called consumer sales promotions. Sales
promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual
methods, are considered gimmick by many.

Trade sales promotion techniques

• Trade allowances: short term incentive offered to induce a retailer


to stock up on a product.
• Dealer loader: An incentive given to induce a retailer to purchase
and display a product.
• Trade contest: A contest to reward retailers that sell the most
product.
• Point-of-purchase displays: Extra sales tools given to retailers to
boost sales.
• Training programs: dealer employees are trained in selling the
product.

The goal of marketing is to obtain competitive advantage by meeting


consumer wants and needs more effectively than competing firms need.
The goal of Coca-Cola is to be the preferred partner to the customers
(retail outlets). In furtherance of this goal coke has focused on further
building customer-centric capabilities that encompass both the In store
execution and supply chain. Closer cross-functional alignment has
resulted in higher levels of service to the outlet owners and higher profits
to the company, this was realized by an approach which is (I SEE, I WANT,
I DRINK) this is the AIDAS approach and this has become very popular in
sales. It includes attention, interest, desire, action and satisfaction. It is a
buyer oriented formula because it emphasizes the customer's needs and
problems. “Attention" makes customers aware of the product as well as
the image of the company. "Interest" refers to the prospects, or the
customers’ interest in the product. "Arousing desire" refers to the
preferences or likings of the customers; "Action" means building
conviction or obtaining a trial order.

Promotion insures continuing action. Different promotion blends are


required for different segments of the market. Many customers are
motivated by continuous AIDAS approach to purchase the product of the
company. To bring this approach in to practice, coke has realized that
executing it is very important then company has come up with Right
Execution Daily (RED) as they call it is a programme that monitors, at the
individual outlet level, how well the merchandising standards are
implemented and maintained. Furthermore, it helps Coke identify
opportunities to make immediate improvements that support growth for
the customers and themselves.

(1.3) OBJECTIVES OF THE STUDY


1) To Study RED Methodology

2) To identify the measures of RED Management

3) To focus on the market share of the Coke through RED Management

(1.4) PLAN OF THE STUDY


1) Chapter – I provides introduction to the topic (RED) and the
objectives of the study apart from the methodology etc.

2) Chapter –II gives an insight to the company and its development in


the beverage industry it also comprises the Advertising aspects,
Bottling, Coca-Cola and the various brands in India

3) Chapter – III is the detailed explanation about (RED) Right Execution


Daily like Market Segmentation ,Norms of Visi cooler, Brand Order,
Activation Elements etc. It is an analysis of its implementation

4) Chapter –IV is Data Analysis, in this chapter data which is collected


by interviews, questionnaire and observation was analyzed with
respect to certain parameters or implementation of merchandising
standards.

5) Chapter – V is the list of findings, conclusions, implications,


recommendations and the limitations for (RED) Right Execution
Daily.

(1.5) SCOPE OF THE STUDY


In order to find/ensure the brand order, brand availability & sales
efficiency various retail outlets are covered in the surround areas of
secunderabad and the factor that were examined include the following

1) Educating customers, the importance of Cooler in Prime position

2) Brand Order in the Cooler

3) Availability and visibility of the Products in shelf/Cooler

4) Activation elements in the Outlet

5) Reduction in stock shortages in the marketplace

6) Optimize overall sales efficiency and effectiveness

7) Evaluate the market developer


(1.6) RESEARCH METHODOLOGY
The methodology is primarily based on survey method, which is through
Questionnaires and interviewing the owners of the outlets like grocery
retailer, convenience store, E & D and consumers. For survey, the sample
is collected from different locations of Secunderabad. The data thus
collected is analyzed using statistical tools like graphs & hypothesis and
the interpretation is formed therefrom

RESEARCH DESIGN

The research includes the study, which was descriptive in nature.

The study includes two methods

 Questionnaire/ interview method

 RED scoring card

SAMPLING PLAN

 Sampling unit- Retail outlets.

 Sampling size- 150 outlets

 Sampling procedure-Random sampling

 Sampling method- Retailers survey

(1.7) HYPOTHESES

The Company claims that 80 percent of customers are very satisfied with
the service they receive. To test this claim, 100 customers were surveyed
using simple random sampling. Among the sample customers, 73 percent
say they are very satisfied. Based on these findings, Company can reject
the hypothesis that 80% of the customers are very satisfied? With 0.05
level of significance.

SOLUTION Two-Tailed Test has been used

Null hypotheses: 80% of the customers are believed to be very satisfied


(P=0.80)

Alternate hypotheses: Rest of the population i.e. 20% are not satisfied (P≠
0.80)
The null hypothesis will be rejected if the sample proportion is too big or if
it is too small.

The significance level is 0.05

ANALYZE SAMPLE DATA

Using sample data, standard deviation (σ) was calculated and compute
the z-score test statistic (z).

σ = square root [P * (1 - P) / n] = square root [(0.8 * 0.2) / 100] = square


root (0.0016) = 0.04
z = (p - P) / σ = (.73 - .80)/0.04 = -1.75

Where P is the hypothesized value of population proportion in the null


hypothesis, p is the sample proportion, and n is the sample size.

Since we have a Two-Tailed Test, the P-value is the probability that the z-
score is less than -1.75 or greater than 1.75.

We use the Normal Distribution Calculator to find P (z < -1.75) = 0.04, and
P (z > 1.75) = 0.04. Thus, the P-value = 0.04 + 0.04 = 0.08.

INTERPRET RESULTS

Since the P-value (0.08) is greater than the significance level (0.05), we
accept the null hypothesis.

(1.8) SOURCES OF INFORMATION


(a)PRIMARY DATA

(b)SECONDARY DATA

PRIMARY DATA includes the following ways-


 Observation

 Survey through Questionnaire / interviewing

 Information from Coke Employees like the ESM, MD


SECONDARY DATA includes

 RED booklet of the Coca-Cola

 RED scoring tracker

 Internet Sites: www.google.com; www.coca-cola.com; www.coca-

colaindia.com

CHAPTER - II

Company profile

Coca-Cola Advertising
Bottling of Coca-Cola

Coca-Cola in India

Various Brands of Coca-Cola

COMPANY PROFILE
DR. JOHN PEMBERTON FOR THE FIRST TIME PRODUCED THE SYRUP
FOR

COCA- COLA ON MAY 8, 1886

Company Profile

In May 1886, Doctor John Pemberton a pharmacist from Atlanta, Georgia


invented Coca Cola. John Pemberton concocted the Coca Cola formula in a
three legged brass kettle in his backyard. The name was a suggestion
given by John Pemberton's bookkeeper Frank Robinson. Being a
bookkeeper, Frank Robinson also had excellent penmanship. It was he
who first scripted “Coca Cola” into the flowing letters which has become
the famous logo of today.

The soft drink was first sold to the public at the soda fountain in Jacob's
Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink
were sold each day. Sales for that first year added up to a total of about
$50. The funny thing was that it cost John Pemberton over $70 in
expanses, so the first year of sales were a loss. Until 1905, the soft drink,
marketed as a tonic, contained extracts of cocaine as well as the caffeine-
rich kola nut.

By the late 1890s, Coca-Cola was one of America's most popular fountain
drinks. With another Atlanta pharmacist, Asa Griggs Candler, at the helm,
the Coca-Cola Company increased syrup sales by over 4000% between
1890 and 1900. Advertising was an important factor in Pemberton and
Candler's success and by the turn of the century, the drink was sold
across the United States and Canada. Around the same time, the
company began selling syrup to independent bottling companies licensed
to sell the drink. Even today, the US soft drink industry is organized on
this principle.

Until the 1960s, both small town and big city dwellers enjoyed carbonated
beverages at the local soda fountain or ice cream saloon. Often housed in
the drug store, the soda fountain counter served as a meeting place for
people of all ages. Often combined with lunch counters, the soda fountain
declined in popularity as commercial ice cream, bottled soft drinks, and
fast food restaurants came to the fore.

On April 23, 1985, the trade secret "New Coke" formula was released.
Today, products of the Coca Cola Company are consumed at the rate of
more than one billion drinks per day
The world has changed in many ways since pharmacist; John Pemberton
first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia.
However, the pure and simple magic of one thing remains the same ~
Coca-Cola. The name and the product mean so many good things to
hundreds of millions of consumers around the globe. Coca-Cola products
are served more than 705 million times every day, quenching the thirsts
of consumers in more than 195 countries in every climate. That is a long
way to come after such a modest beginning...

May 1886

Pemberton concocted caramel-colored syrup in a three-legged brass


kettle in his backyard. He first "distributed" the new product by carrying
Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents,
consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether
by design or accident, carbonated water was teamed with the new syrup,
producing a drink that was proclaimed "Delicious and Refreshing." Dr.
Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the
name and penned, in the unique flowing script, that is famous worldwide.

Atlanta Begins 1886-1892

It was 1886, and in New York Harbor, workers were constructing the
Statue of Liberty. Eight hundred miles away, another great American
symbol was about to be unveiled.

Like many people who change history, John Pemberton, an Atlanta


pharmacist, was inspired by simple curiosity. One afternoon, he stirred up
a fragrant, caramel-colored liquid and, when it was done, he carried it a
few doors down to Jacobs' Pharmacy. Here, the mixture was combined
with carbonated water and sampled by customers who all agreed -- this
new drink was something special. So Jacobs' Pharmacy put it on sale for
five cents a glass.

Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-


Cola®, and wrote it out in his distinct script. To this day, Coca-Cola is
written the same way. In the first year, Pemberton sold just 9 glasses of
Coca-Cola a day.

A century later, The Coca-Cola Company has produced more than 10


billion gallons of syrup. Unfortunately for Pemberton, he died in 1888
without realizing the success of the beverage he had created.

Over the course of three years, 1888-1891, Atlanta businessman Asa


Griggs Candler secured rights to the business for a total of about $2,300.
Candler would become the Company's first president, and the first to
bring real vision to the business and the brand.

Beyond Atlanta 1893-1904

Asa G. Candler, a natural born sales representative, transformed Coca-


Cola from an invention into a business. He knew there were thirsty people
out there, and Candler found brilliant and innovative ways to introduce
them to this exciting new refreshment. He gave away coupons for
complimentary first tastes of Coca-Cola, and outfitted distributing
pharmacists with clocks, urns, calendars and apothecary scales bearing
the Coca-Cola brand. People saw Coca-Cola everywhere, and the
aggressive promotion worked. By 1895, Candler had built syrup plants in
Chicago, Dallas and Los Angeles.

Inevitably, the soda's popularity led to a demand for it to be enjoyed in


new ways. In 1894, a Mississippi businessperson named Joseph
Biedenharn became the first to put Coca-Cola in bottles. He sent 12 of
them to Candler, who responded without enthusiasm. Despite being a
brilliant and innovative businessperson, he did not realize then that the
future of Coca-Cola would be with portable, bottled beverages customers
could take anywhere. He still did not realize it five years later, when, in
1899, two Chattanooga lawyers, Benjamin F. Thomas and Joseph B.
Whitehead, secured exclusive rights from Candler to bottle and sell the
beverage -- for the sum of only one dollar.

Safeguarding the brand 1905-1918

Imitation may be the sincerest form of flattery, but The Coca-Cola


Company was none too pleased about the proliferation of copycat
beverages taking advantage of its success. This was a great product, and
a great brand. Both needed to be protected. Advertising focused on the
authenticity of Coca-Cola, urging consumers to "Demand the genuine"
and "Accept no substitute."

The Company also decided to create a distinctive bottle shape to assure


people they were actually getting a real Coca-Cola. The Root Glass
Company of Terre Haute, Indiana, won a contest to design a bottle that
could be recognized in the dark. In 1916, they began manufacturing the
famous contour bottle. The contour bottle, which remains the signature
shape of Coca-Cola today, was chosen for its attractive appearance,
original design and the fact that, even in the dark, you could identify the
genuine article. As the country roared into the new century, The Coca-
Cola Company grew rapidly, moving into Canada, Panama, Cuba, Puerto
Rico, France, and other countries and U.S. territories. In 1900, there were
two bottlers of Coca-Cola; by 1920, there would be about 1,000.
Woodruff legacy1919-1940

Perhaps no person had more impact on The Coca-Cola Company than


Robert Woodruff. In 1923, four years after his father Ernest purchased the
Company from Asa Candler, Woodruff became the Company president.
While Candler had introduced the U.S. to Coca-Cola, Woodruff would
spend more than 60 years as Company leader introducing the beverage to
the world beyond.

Woodruff was a marketing genius who saw opportunities for expansion


everywhere. He led the expansion of Coca-Cola overseas and in 1928
introduced Coca-Cola to the Olympic Games for the first time when Coca-
Cola traveled with the U.S. team to the 1928 Amsterdam Olympics.
Woodruff pushed development and distribution of the six-pack, the open
top cooler, and many other innovations that made it easier for people to
drink Coca-Cola at home or away. This new thinking made Coca-Cola not
just a huge success, but a big part of people's lives.

The war and its legacy 1941-1959

In 1941, America entered World War II. Thousands of men and women
were sent overseas. The country, and Coca-Cola, rallied behind them.
Woodruff ordered that "every man in uniform gets a bottle of Coca-Cola
for 5 cents, wherever he is, and whatever it costs the Company." In 1943,
General Dwight D. Eisenhower sent an urgent cablegram to Coca-Cola,
requesting shipment of materials for 10 bottling plants. During the war,
many people enjoyed their first taste of the beverage, and when peace
finally came, the foundations were laid for Coca-Cola to do business
overseas.

Woodruff’s vision that Coca-Cola be placed within "arm's reach of desire,"


was coming true -- from the mid-1940s until 1960, the number of
countries with bottling operations nearly doubled. Post-war America was
alive with optimism and prosperity. Coca-Cola was part of a fun, carefree
American lifestyle, and the imagery of its advertising -- happy couples at
the drive-in, carefree moms driving big yellow convertibles -- reflected the
spirit of the times.

A world of customers 1960-1981

After 70 years of success with one brand, Coca-Cola®, the Company


decided to expand with new flavors: Fanta®, originally developed in the
1940s and introduced in the 1950s; Sprite® followed in 1961, with TAB®
in 1963 and Fresca® in 1966. In 1960, The Coca-Cola Company acquired
The Minute Maid Company, adding an entirely new line of business --
juices -- to the Company.
The Company's presence worldwide was growing rapidly, and year after
year, Coca-Cola found a home in more and more places: Cambodia,
Montserrat, Paraguay, Macau, Turkey and more.

Advertising for Coca-Cola, always an important and exciting part of its


business, really came into its own in the 1970s, and reflected a brand
connected with fun, friends and good times. The international appeal of
Coca-Cola was embodied by a 1971 commercial, where a group of young
people from all over the world gathered on a hilltop in Italy to sing "I'd
Like to Buy the World a Coke."

In 1978, The Coca-Cola Company was selected as the only Company


allowed to sell packaged cold drinks in the People's Republic of China.

Diet coke and new coke 1982-1989

The 1980s -- the era of legwarmers, headbands and the fitness craze, and
a time of much change and innovation at The Coca-Cola Company. In
1981, Roberto C. Goizueta became chairman of The Board of Directors
and CEO of The Coca-Cola Company. Goizueta, who fled Castro's Cuba in
1961, completely overhauled the Company with a strategy he called
"intelligent risk taking."

Among his bold moves was organizing the numerous U.S. bottling
operations into a new public company, Coca-Cola Enterprises Inc. He also
led the introduction of diet Coke®, the very first extension of the Coca-
Cola trademark; within two years, it had become the top low-calorie drink
in the world, second in success only to Coca-Cola.

One of Goizueta's other initiatives, in 1985, was the release of a new taste
for Coca-Cola, the first change in formulation in 99 years. In taste tests,
people loved the new formula, commonly called “new Coke.” In the real
world, they had a deep emotional attachment to the original, and they
begged and pleaded to get it back. Critics called it the biggest marketing
blunder ever. But the Company listened, and the original formula was
returned to the market as Coca-Cola classic®, and the product began to
increase its lead over the competition -- a lead that continues to this day.

New markets and brands 1990-1999

The 1990s were a time of continued growth for The Coca-Cola Company.
The Company's long association with sports was strengthened during this
decade, with ongoing support of the Olympic Games, FIFA World Cup™
football (soccer), Rugby World Cup and the National Basketball
Association. Coca-Cola classic became the Official Soft Drink of NASCAR
racing, connecting the brand with one of the world's fastest growing and
most popular spectator sports.

And 1993 saw the introduction of the popular "Always Coca-Cola"


advertising campaign, and the world met the lovable Coca-Cola Polar Bear
for the first time. New markets opened up as Coca-Cola products were
sold in East Germany in 1990 and returned to India in 1993.

New beverages joined the Company's line-up, including Powerade® sports


drink, Qoo® children's fruit drink and Dasani® bottled water. The
Company's family of brands further expanded through acquisitions,
including Limca®, Maaza® and Thums Up® in India, Barq's® root beer in
the U.S., Inca Kola® in Peru, and Cadbury Schweppes'® beverage brands
in more than 120 countries around the world. By 1997, the Company
already sold 1 billion servings of its products every day, yet knew that
opportunity for growth was still around every corner.

Coca cola now 2000

In 1886, Coca-Cola® brought refreshment to patrons of a small Atlanta


pharmacy. Now well into its second century, the Company's goal is to
provide magic every time someone drinks one of its more than 400
brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking
brands such as Ambasa, Vegitabeta and Frescolita. In the remotest
comers of the globe, you can still find Coca-Cola.

Coca-Cola is committed to local markets, paying attention to what people


from different cultures and backgrounds like to drink, and where and how
they want to drink it. With its bottling partners, the Company reaches out
to the local communities it serves, believing that Coca-Cola exists to
benefit and refresh everyone it touches.

From the early beginnings when just nine drinks a day were served, Coca-
Cola has grown to the world’s most ubiquitous brand, with more than 1.4
billion beverage servings sold each day. When people choose to reach for
one of The Coca-Cola Company brands, the Company wants that choice to
be exciting and satisfying, every single time.

1893 In January "Coca-Cola" was registered in the U.S. Patent office.

1894 The first syrup plant outside of Atlanta was opened in Dallas.

1906 The first two countries outside the US to bottle Coca-Cola were
Cuba and Panama
1915 The Root Glass company created the Coca-Cola contour glass
bottle.

1919 The Coca-Cola Company was sold to a group of investors for


$25 million.

1925 6 Million Coke's sold per day.

1927 The first Coca-Cola radio advertisement.

1928 Sales of bottled Coca-Cola surpassed fountain sales for the first
time.

1929 Advertising slogan - "The Pause that refreshes".

1940 Coke is bottled in over 40 countries.

1956 Advertising slogan - "Coca-Cola, making good things taste


better".

1961 Sprite was introduced.

1970 Advertising slogan - "It's the Real Thing".

1971 The song "I'd like to buy the World a Coke" was released.

1979 Advertising slogan - "Have a Coke and a Smile".

1982 Diet Coke was introduced in July.

1988 Coca-Cola was the first independent operator in the Soviet


Union.

1989 Advertising slogan - "Can't Beat the Feeling".

1993 Coca-Cola exceeds 10 Billion cases sold worldwide.

1993 Advertising slogan - "Always Coca-Cola".

The Coca-Cola Company began bottling


operations

1907 In Hawaii.
1912 In the Philippines.

1920 In France.

1927 In Belgium, Bermuda, Colombia, Honduras, Italy, Mexico, Haiti


and Burma.

1928 In Antigua, China, Guatemala, Holland, Spain, Venezuela, and


Dominican Republic.

1929 In Germany and Spanish Morocco.

1938 Australia, Austria, Guyana, Surinam, Jamaica, Curacao,


Luxembourg

1940 In Ecuador, and El Salvador.

1942 In Nicaragua, Argentina, Brazil, Costa Rica, Iceland, and Uruguay.

1945 In Egypt, and Martinique

1946 In Barbados, Japan, and Okinawa

1947 In Morocco and Tangier

1948 In Liberia, Rhodesia, and Guadeloupe

COCA-COLA ADVERTISING

Coca-Cola's advertising has had a significant impact on American culture,


and is frequently credited with the "invention" of the modern image of
Santa Claus as an old man in red-and-white garments; however, while the
company did in fact start promoting this image in the 1930s in its winter
advertising campaigns, it was already common before that In the 1970s, a
song from a Coca-Cola commercial called "I'd Like to Teach the World to
Sing", produced by Billy Davis, became a popular hit single, but there is
no evidence that it did anything to increase sales of the soft drink.
Coca-Cola has a policy of avoiding using children younger than the age of
12 in any of its advertising as a result of a lawsuit from the beginning of
the 20th century that alleged that Coke's caffeine content was dangerous
to children. However, in recent times, this has not stopped the company
from targeting young consumers. In addition, young children (or pregnant
mothers) have not disclosed it in exact terms how safe Coke is for
consumption.

Coke's advertising has been rather pervasive, as one of Woodruff's stated


goals was to ensure that everyone on Earth drank Coca-Cola as their
preferred beverage. Advertising for Coke is now almost ubiquitous,
especially in southern areas of North America, such as Atlanta, where
Coke was born. The 1996 Summer Olympics were hosted in Atlanta, and
as a result, Coca-Cola effectively received free advertising. Coca-Cola was
also the first-ever sponsor of the Olympic games, at the 1928 games in
Amsterdam.

During the 1980s, Pepsi-Cola ran a series of television advertisements


showing people participating in taste tests in which they expressed a
preference for Pepsi over Coke. Coca-Cola ran ads to combat Pepsi's ads
in an incident sometimes referred to as the cola wars; one of Coke's ads
compared the so-called Pepsi challenge to two chimpanzees deciding
which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership
in the market.

In an attempt to broaden its portfolio, Coca-Cola purchased Columbia


Pictures in 1982. Columbia provided subtle publicity through Coke product
placements in many of its films while under Coke's ownership. However,
after a few early successes, Columbia began to underperform, and was
dropped by the company in 1989.

Coca-Cola has gone through a number of different advertising slogans in


its long history, including "The pause that refreshes", "I'd like to buy the
world a Coke", and "Coke is it" (SEE COCA-COLA SLOGANS)

Slogans from the 1900's

1904 - Delicious and Refreshing

1905 - Wherever you go ... you will find Coca-Cola

1905 - Coca-Cola Revives and Sustains

1906 - The drink of quality. The Great National Temperance


1907 - Coca-Cola is full of vim, vigor and go

1908 - Get the genuine

1909 - Whenever you see an arrow, think of Coca-Cola

1911 - Enjoy a glass of liquid laughter

1917 - Three Million A Day

Slogans from the 1920's

1920 - Drink Coca-Cola with soda, the hit that saves the day

1922 - Thirst knows no season

1923 - Refresh yourself, there’s nothing like it when you're thirsty

1924 - Pause and refresh yourself

1925 - Six Million A Day

1926 - Stop at the red sign

1927 - Around the corner from anywhere, at


the little red sign

1928 - A pure drink of natural flavors

1929 - The pause that refreshes.

Slogans from the 1930's

1930 - Meet me at the soda fountain

1932 - The drink that makes the pause refreshing

1933 - Don't wear a tired, thirsty face

1934 - When it's hard to get started, start with a Coca-Cola


1935 - All trails lead to ice-cold Coca- Cola

1936 - Get the feel of wholesome


refreshment

1937 - Stop for a pause...goes refreshed

1938 - Anytime is the right time to pause and refresh, Pure as sunlight

1939 - Thirst stops here. Makes travel more pleasant.

Slogans from the 1940's

1940 - The package that gets a welcome at home

1941 - A stop that belongs on your daily timetable

1943 - A taste all its own

1944 - High sign of friendship

1945 - Coke means Coca-Cola

1947 - Relax with the pause that


refreshes

1948 - Where there's Coca-Cola there's Hospitality

1949 -Along the highway to anywhere

Slogans from the 1950's

1950 - Help yourself to refreshment

1951 - Good food and Coca-Cola just naturally go together

1952 - Coke follows thirst everywhere

1953 - Dependable as sunrise


1954 - For people on the go

1955 - Americas preferred taste

1956 - Feel the difference, Makes good things taste better

1957 - Sign of good taste

1958 - Refreshment the whole world prefers

1959 - Make it a real meal

Slogans from the 1960's

1960 - Relax with a Coke, Revive with a Coke

1961 - Coke and food

1962 - Enjoy that refreshing new feeling

1963 - Things go better with Coke

1964 - You'll go better refreshed

1965 - Something more than a soft drink

1966 - Coke...after Coke...after Coke

Slogans from the 1970's

1970 - It's the real thing

1971 - I'd like to buy the world a Coke

1972 - Coke . . . goes with the good times

1975 - Look up America, see what we've got

1976 - Coke adds life

Slogans from the 1980's

1980 - Have a Coke and a smile

1982 - Coke is it

1985 - We have a taste for you. America's real choice Coca-Cola Classic!
1986 - Catch the Wave. Red, white and you!

1988 - Can't beat the feeling

1989 - Can't beat the real thing

Slogans from the 1990's

1993 – Always Coca-Cola

Slogans From the 2000’s

2003 – Thanda Matlab

BOTTLING CONCEPT OF COCA-COLA

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

1894 A modest start for a bold idea


In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain
Beverage called Coca-Cola impressed the store's owner, Joseph A.
Biedenharn. He began bottling Coca-Cola to sell, using a common glass
bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler,
who owned the Company. Candler thanked him but took no action. One of
his nephews already had urged that Coca-Cola be bottled, but Candler
focused on fountain Sales.

1899 The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could


build a business around bottling Coca-Cola. In a meeting with Candler,
Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to
bottle Coca-Cola across most of the United States -- for the sum of one
dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their
venture.

1900-1909 Rapid growth

The three pioneer bottlers divided the country into territories and sold
bottling rights to local entrepreneurs. Their efforts were boosted by major
progress in bottling technology, which improved efficiency and product
quality. By 1909, nearly 400 Coca-Cola bottling plants were operating,
most of them family-owned businesses. Some were open only during hot-
weather months when demand was high.

1916 Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused


with imitators. A group representing the Company and bottlers asked
glass manufacturers to offer ideas for a distinctive bottle. A design from
the Root Glass Company of Terre Haute, Indiana won enthusiastic
approval. The Contour Bottle became one of the few packages ever-
granted trademark status by the U.S. Patent Office. Today, it is one of the
most recognized icons in the world - even in the dark!

1920s Bottling overtakes fountain sales

As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating
in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons
were a huge hit starting in 1923. A few years later, open-top metal coolers
became the forerunners of automated vending machines. By the end of
the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

1920s and ‘30s International expansion

Led by Robert W. Woodruff, chief executive officer and chairperson of the


Board, the Company began a major push to establish bottling operations
outside the U.S. Plants were opened in France, Guatemala, Honduras,
Mexico, Belgium, Italy and South Africa. By the time World War II began,
Coca-Cola was being bottled in 44 countries.

1940s Post-war growth

During the war, 64 bottling plants were set up around the world to supply
the troops. This followed an urgent request for bottling equipment and
materials from General Eisenhower's base in North Africa. Many of these
wartime plants were later converted to civilian use, permanently enlarging
the bottling system and accelerating the growth of the Company's
worldwide business.

1950s Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and
type-the traditional 6.5 ounce Contour Bottle, or larger servings including
10-, 12- and 26- ounce versions. Cans were also introduced, becoming
generally available in 1960.

1960s New brands introduced

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr.
Pibb and Mello Yello were added in the 1970s. The 1980s brought diet
Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s.
Today scores of other brands are offered to meet consumer preferences in
local markets around the world.

1970s and ‘80s Consolidation to serve customers

As technology led to a global economy, retail customers of the Coca-Cola


Company merged and evolved into international mega-chains. Such
customers required a new approach. In response, many small and
medium-size bottlers consolidated to better serve giant international
customers. 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.

1990s New and growing markets

Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company
invested heavily to build plants in Eastern Europe. As the century closed,
more than $1.5 billion was committed to new bottling facilities in Africa.

21st Century think local, act local

The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as consumers
seek brands that honor local identity and the distinctiveness of local
markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the
foundation on which the entire business grows.

In India
Coca-Cola has started its operations in Indian market in October 1993.
This has been its reentry in Indian market after withdrawal of its operation
in 1970’s. The Indian market offers a strong consumer potential as
majority of the population is middle class category, which is a strong
consumer base for any FMCG company like Coca-Cola to float its range of
products. Coca-Cola has acquired the soft drink brands image in Indian
market during the reentry of Coca-Cola in 1993. Thus these products a
part of range of products of Coca-Cola.

MISSION OF COCA-COLA INDIA


To create consumer products, service and communications, customer
service and bottling system strategies, processes and tools in order to
create competitive advantage and deliver superior value to:

 Consumers as a superior beverage experience.

 Consumers as an opportunity to grow profits through the use of


finished drinks.

 Bottlers as an opportunity to grow profits in volumes.

 TCCC: As trade mark enhancement and positive economic value-


added.

 Suppliers as an opportunity to make reasonable profits when


creating real

 value-added in an environment of system-wide team work, flexible


business

 System and continuous improvement.

 Indian society in the form of a contribution to economic and social


development.
VISION OF COCA-COLA INDIA
Provide exceptional strategic leadership in the Coca-Cola India System-
resulting in consumer and customer preference and loyalty, through Coca
Cola’s commitment to them, and in a highly profitable Coca-Cola
Corporate branded beverages system.

QUALITY VISION OF COCA-COLA INDIA


At the Coca-Cola Company, Quality is more than just something we taste,
or see, or measure, or manage. Quality shows itself in our every action; it
encompasses everything we do. From processing to packaging to pouring,
anything less than100% quality is unacceptable. Our consumers
throughout the world deserve the best quality beverages we can produce.

QUALITY MISSION OF COCA-COLA INDIA


To provide all our consumers Safe & Refreshing Product, that always
meets the Coca-Cola Company Standards. We will fulfill this by providing
leadership throughout the value chain that will drive consumer
acceptance and confidence in our brands.

TRADEMARKS
Our trademarks are our most valuable assets. The trademark “Coca-Cola”
was registered with the U.S. Patents and Trade mark office in 1893,
followed by “Coke” in 1945. The unique contour bottle, familiar to
consumers everywhere were, granted registration as a trademark by the
U.S Patent and Trademark office in 1977, an honor awarded to a few other
packages. In 1982, The Coca-Cola Company introduced diet Coke to U.S
consumers, marking the first extension of the Company’s most precious
trademark to another product. Later years saw the introduction of
additional products bearing the Coca-Cola name, which now encompasses
a powerful line of six cola products.

FACTS ABOUT COCA-COLA


 Every day, consumers in approximately 200 countries around the
world drink an average of 10,450 Coca-Cola beverages per second.

 If all the Coca-Cola eve produced were placed in bottles and….


 Placed end to end, the bottled would reach all the way to the moon
and back 1045 times.

 Stacked on a football field, the bottles would form a mountain 325


miles high, 59 times taller than Mount Everest.

 Loaded on average sized trucks, passing a given point, bumper


thumper, at a speed of 65 miles per hour it would take 3 years, 6
months, 2 weeks and 6 days for the trucks to pass.

 Placed end to end the bottles would wrap around the equator
20,051 times.

 If all the Coca-Cola ever produced were to erupt from “Old Faithful”
at its normal rate of 15,000 gallons per hour, the geyser would flow
continually for 1577 years.

Location

With its global headquarters in Atlanta, U.S. the Coca-Cola Company sells
its products through associate companies and business associates in more
than 200 countries.

Coca-Cola India in 2004: Marketing Strategy


In March 2003, a message from Coca Cola’s global headquarters in
Atlanta, United States, created a lot of excitement in the Indian
subsidiary. Coca-Cola India (CCI), had been awarded the Woodruff award
for outperforming the dozen-odd emerging markets of Coca-Cola
worldwide in growth and profitability during 2002. The comeback was
remarkable for the global cola major. In January 2000, the company had
stated that its investment in India had yielded disappointing returns.

The company had invested $800 million in its Indian operations since its
reentry in India. From causing a dent in the parent's bottom line to
winning the prestigious Woodruff award, CCI seemed to have come a long
way.

CCI was also a major sourcing point for its global operations. Apart from
product brands, the company was also a major supplier of commodities
and materials like sugar, coffee, PET bottles, recycled glass bottles,
crowns, labels and caps to its global operations. It was only in India that
Coca-Cola had a mix of its own bottling facilities and arrangements with
independent bottlers. CCI had 27 owned units, 17 franchised units, and 22
co-packers.
Coca-Cola reentered India in 1993, after having withdrawn from the
country in the late 1970s, in the wake of the Foreign Exchange Regulation
Act (FERA) of 1973. Coca Cola’s reentry was driven both by competitive
factors and the company's own global plans. Global rival Pepsi had
entered India in 1990 and by 1993 had captured a 25% market share.
Coca-Cola could not stay

Coca Cola’s exit from the country in 1977, after a 25-year presence, had
been discordant. Following the introduction of FERA, the Reserve Bank of
India (RBI) asked multinationals operating in non-strategic industries like
consumer goods to reduce their equity stake to 40% or below. Coca-Cola
offered to hold 40% equity in its bottling and distribution units, but
refused to dilute equity in its technical and administrative unit. As the
FERA regulations did not permit more than a 40% holding in all
operations, the company decided to wind up its Indian operations.

Brands

Well-known beverage products from the Coca-Cola Company include


Coca-Cola, Thums Up, sprite, limca, Fanta, maaza, Minute Maid and Kinley

Coca-Cola
Coca-Cola

The world's favorite drink. The world’s most valuable brand. Coca cola has a
truly remarkable heritage. From a humble beginning in1886,it is now the
flagship brand of the largest manufacturer, marketer and distributor of non-
alcoholic beverages in the world.

Thums-up
Strong Cola Taste, Macho Personality

Thums Up is a leading sparkling soft drink and most trusted brand in India.
Originally introduced in1977, Thums upwas acquired by the Coca-Cola
Company in 1993.

Thums Up is known for its strong, fizzy taste and its confident, mature and
uniquely masculine attitude. This brand clearly seeks to distinguish the
professionals from the amateurs.

Sprite
Sprite

Worldwide sprite is ranked as the no4 soft drink and is sold in more than
190 countries.

In India, sprite was launched in year 1999 and today it has grown to be
one of the fastest growing soft drinks, leading the clear lime category

Today Sprite is perceived as a youth icon. Why? With a strong appeal to


the youth, Sprite has stood for a straightforward and honest attitude. Its
clear crisp refreshing taste encourages the today’s youth to trust their
instincts, influence them to be true to who they are and to obey their
thirst.

Limca
Limca

Lime ‘n’ Lemoni Limca can cast a tangy refreshing spell an anyone,
anywhere. Derived from Nimbu + jaisa hence lime Sa, Limca has lived up
to its promise of refreshment and has been the original thirst choice of
millions of consumers for over 3 decades.

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’
Fanta

Fanta

Internationally, Fanta the orange drink of the Coca-Cola Company is seen


as one of the favorite drinks since 1940’s. Fanta entered the Indian
market in the year 1993

Over the years Fanta has occupied a strong market place and is identified
as ‘The Fun Catalyst’

Perceived as a fun youth brand, Fanta stands for its vibrant color,
tempting taste and tingling bubbles that not just uplifts feeling but also
helps free spirit thus encouraging one to indulge in the moment. This
positive imagery is associated with hpaay, cheerful and special times with
friends.
Maaza

Maaza

Mango. It is a fruit associated with good times like no other. Aptly called
the king of fruits, mangoes are to mango lovers what romance is to a
Casanova.

Now imagine this delicious fruit, bottled. This is what Maaza is all about.
Introduced in the late 1970’s Maaza has today come to symbolize the very
spirit of mangoes, Universally loved for its taste, color, thickness and
wholesome properties, Maaza is the mango lover’s first choice
Minute maid Pulpy Orange

Minute Maid- one of the world's largest juice and juice drink
brands

Over the years, through innovations and unmatched consumer experience


provided in over 60 countries, Minute Maid brand has clearly become one
of the world's largest juice drink brands. The launch of Minute Maid pulpy
Orange in India (Starting with the south of the country) is aimed to further
extend the leadership of coca- cola in India in the juice drink category.
Kinley

Kinley

Water, a thirst quencher that refreshes, a life giving force that washes all
the toxins away. A ritual purifier that cleanses, purifies, transforms. Water,
the most basic need of life, the very sustenance of life, a celebration of
life itself.

The importance of water can never be understated. Particularly in a nation


such as India where water governs the lives of the millions, be it as part of
everyday rituals or as the monsoon which gives life to the sub-continent.
Georgia

Georgia

Quality Tea & Coffee from the Coca-Cola Company

Introduced in 2004 the GEORGIA Gold range of Tea and Coffee beverages
is the perfect solution for your office and restaurant needs!
CHAPTER – III

RIGHT EXECUTION DAILY (RED)


Right execution daily (RED)

One of the key strengths is the ability to directly reach the customers
regularly. The sales people are dedicated to building strong and
constructive relationships with every one of the various customers,
including kiosks, grocery stores, convenience stores, hotels, restaurants,
cafés, bars and petrol stations. With such a diverse customer base, the
sales force has to be highly specialized to understand how to best fulfill
the customers’ needs.

In the pursuit of excellence in marketplace execution, Coke has


implemented a programme they call Right Execution Daily (RED). This
programme monitors, at the individual outlet level, how well the
merchandising standards are implemented and maintained. Furthermore,
it helps Coke identify opportunities to make immediate improvements that
support growth for the customers and themselves. RED is just one part of
the efforts to enhance revenue growth opportunities by optimizing the
combination of brand, package and price for each consumption occasion.

Working together with the customers as one team translates into higher
customer satisfaction and measurably improved performance. The
training programme for independent grocery stores in Hyderabad is a
small but telling example of this effort. Coke conducted an independent
market survey and provided storeowners with data on current shopping
trends. An analysis of the results helped them identify key factors that
affect shopping preferences and habits. Focusing on these factors, Coke
designed a set of solutions such as repositioning the products on display
or remodeling the entire store, which resulted in better business and
increased sales for the customers participating in the programme.

Improving in-store execution requires the right number of sales people


with superior capabilities. In order to support such capabilities Coke
implemented training plans and on-the-job coaching for both the sales
people and their managers. They have also implemented a specialized
curriculum focused on capability building for individual areas of the
commercial function. Market visits, workshops, presentations, conferences
and other communication opportunities enable the employees’ share
experiences’, learning’s and best practices
MARKET SEGMENTATION UNDER RED.
Coca-Cola Company segmented the market under RED along three lines

 Channel Cluster

 Outlet Volume

 Locality Income
From the above graph, it is clear that each segment is further divided,
which is explained below.

CHANNEL CLUSTER:

 Grocery: Outlets primarily engaged in retailing of food & various


household items. It includes Grocers(Outlets dealing mainly in
grains, provisions, spices, edible oil, vanaspati etc) and General
Stores ( Outlets selling items of day-to –day requirements &
stocking a variety of branded products)

 E&D Type1: Outlets selling items to eat which are being consumed
primarily standing in the outlet or being taken away for future
Consumption. Does not have a place to sit. It includes Bakery /
sweet Shops / QSR / Juice Centers / Soft Drinks Shops / Tea Shops
etc.

 E&D Type2: Outlets selling items to eat which are being cooked /
made within outlet with possibility of consuming those products
within the outlet. The outlet should have a place to sit. It includes Sit
down Restaurants / Bars / Dhabas / Cafes etc.

 Convenience: includes outlets, which are small stores or shops,


generally accessible locally. These are often located alongside busy
roads. It includes Chemists / STD Booths / Pan-Beedi Shops, etc.

OUTLET VOLUME:
Under this head, Outlet classification is as per the volume of cases they
Order annually.

 Diamond : Are those Outlets that give more than 800 cases of
Order Annually.

 Gold : Are those Outlets that give an Order between 500-


799 cases annually.

 Silver : Are the Outlets that give an Order between 200-499


cases annually.

 Bronze : Are the Outlets that give less than 200 Cases of
Order Annually.

LOCALITY INCOME: Explains about people of different income groups


 High

 Medium

 Low
NUMBER OF SHOPPERS OR CONSUMERS IN GIVEN UNIVERSE THAT CAN BE
INDUCED (POPULATION)
 Keeping the Cooler at the entrance

 Standee, sign board at the entrance

 Combo Boards at the entrance

PERCENTAGE OF POPULATION THAT BUY COKE PRODUCT (INCIDENCE)


 Cooler in prime position

 Keeping the Cooler pure and clean

 Rack Display

 Shelf Display / Counter Top / Cut Case Display

 Combo Boards

 Table Activation

 Drinking Shop / OBM / Price Communication

NORMS FOR VISI COOLER / CHEST COOLER


 Is a Coca-Cola Visi/chest-Cooler present and working?

 Is the Visi/Chest-Cooler as per standard?

 Is the Visi-Cooler in the prime position?

 Is the Visi/Chest-Cooler 100% pure?

 Is the Visi-Cooler Brand & Shelf-order compliant?

BRAND ORDER
Company has certain standard for Brand Order which is to be maintained
in the Cooler, as per the Outlet which is ‘COLOJ-K’ that is

Thums Up+ (Cola Lemon Orange Juice Kinley) + (Maaza,


Minute maid)

AVAILABILITY
Availability should be as per the type of Outlet. There are four types of
Outlet’s according to this a Market Developer has to ensure the
availability of the products in a particular Outlet.

IMPURITY
Under the RED Concept Impurity refers to that brand which is stocked in
the visi Cooler other than coke’s product. Therefore, no other product
other than Coke should be kept in the visi Cooler.

ACTIVATION OF THE OUTLET


Activation is very important as it boosts the sales of the company.
Activation of the outlet is through various activation elements like Shelf
Display, Combo Boards, etc. As this helps grab the attention of the
consumer to buy the product. Activation Elements are different to
different kinds of Outlets.

ACTIVATION ELEMENTS, WHICH COKE USES TO INDUCE THE CONSUMER, ARE

1. Dealer Board / DPS

2. Non-Lit Flange

3. Road Standee

4. Price Strips / Shelf Strips

5. Clip-on Combo Boards both Lit and Non Lit

6. Cut Case

7. Shelf Display

8. 1 Tier / 3 Tier Rack

9. Menu Card / Menu Board

RED SCORE TRACKER


A market Developer performance is tracked on three different Parameters,
they are

 Visi/Chest Cooler : 25 Points

 Availability : 60 Points

 Activation : 15 Points

These 100 points are distributed in various parameters which is explained


below
CHAPTER – IV

Data Analysis
DATA ANALYSIS

DATA COLLECTED BY INTERVIEWS, QUESTIONNAIRE AND OBSERVATION WAS


ANALYZED WITH RESPECT TO CERTAIN PARAMETERS OR MERCHANDISING
STANDARDS.

1. MONOPOLY IN THE MARKET

100

80

60 Coca-Colaonly

40
Shared(Coke & Pepsi)
20

0
Market Share

( FIGURE: 4.1 )

From the Data collected it is analyzed that of 150 retail outlets visited in
the area of secunderabad it was observed that Coca-Cola has a market
share of 84% while both coke and Pepsi co share the rest 16% of the
market which is clearly shown from the above graph
2. NUMBER OF RED & NON-RED OUTLET

100

80

60
REDoutlet
40
Non-REDoutlet
20

0
Numberof RED& Non-REDoutlet of Coca-
Cola

( FIGURE 4.2 )
From the above graph it is clear that 93% are RED outlets of Coca-Cola
and the rest of them are the Non-RED outlets which are in the low-income
locality.
3. TYPE OF COOLER USED IN THE OUTLET IS IT THE COMPANY COOLER, OYA,

FAMILY FRIDGE

100

80

60 CompanyCooler
OYA
40
FamilyFridge
20

0
CompanyCooler

( FIGURE 4.3 )
 93% of 150 outlets are RED outlets and all these outlets have
company cooler

 Rest of the Non-RED outlets have 2% of OYA and 5% are Family


fridge
4. COOLER IN THE PRIMARY POSITION IS THE VISIBILITY FACTOR WHICH IS

VERY IMPORTANT AS THIS ACTS AS ACTIVATION ELEMENT AND EFFECT THE

SALES FOR BOTH THE CUSTOMER AND THE COMPANY

100

80

60
Yes
40 No

20

0
Cooler inPrimaryPosition

( FIGURE 4.4 )
It is found that 93% of 150 outlets are RED outlets with in this
82.5% of coolers are in the Primary Position while the rest 17.5% are
not in the Primary Position
5. ONE OF THE MAIN ASPECTS OF RED NORMS IS THE COOLER PURITY AND

IT IS SAID TO BE PURE ONLY WHEN THE COOLER HAS NO OTHER PRODUCT

OTHER THAN COKE IN THE COOLER LIKE SOFT DRINKS OF PEPSI CO,
PARLE, WATER PACKETS, UTENSILS ETC.

70

60

50

40
Pure
30 Impure
20

10

0
1st Qtr

( FIGURE 4.5 )
As per the RED Norms it is observed that 62% coolers are pure which
means there is no other product other than coke in the cooler and the rest
38% are not pure
6. BRAND AVAILABILITY ALSO ACTS AS ACTIVATION ELEMENT BOTH IN THE

COOLER AND SHELF

90
80
70
60
50 Availability
40
Non-Availability
30
20
10
0
Brand Availability

( FIGURE 4.6 )
88% of all the outlets have the availability of all brands of Coke while
12% of outlets there is lack of availability, Non-Availability is observed
especially in Non-RED outlets

7. ACTIVATION ELEMENTS, WHICH COKE USES TO INDUCE THE CONSUMER TO

PURCHASE THE PRODUCT LIKE SHELF DISPLAY, NON-LIT FLANGE, ROAD


STANDEE, PRICE STRIPS ETC.
100

80

60
Available
40 Not Available

20

0
Activation Elements

( FIGURE 4.7 )

It is observed that of all 150 outlets 93% are RED outlets with in this
outlets the total 83% of the stores have activation elements which is
crucial as these activate desire in the consumer to buy it and drink
which in turn increase the sale for the retail outlet and the company,
while the rest of the outlets don’t have activation elements or not as
per the specification of the outlet.
8. BRAND ORDER IN THE COOLER IS AGAIN ANOTHER IMPORTANT ASPECTS

OF RED STANDARDS. BRAND ORDER OF COKE IS ( COLOJ ) K


WHICH IS

THUMS-UP +( COLA > LEMON > ORANGE > JUICE > KINLEY)+
(MAAZA, MINUTE MAID)

60

50

40

30 Yes
No
20

10

0
BrandOrder

( FIGURE 4.8 )
 Brand order in the cooler is observed to be 58% of all the RED
outlets

 42% of Outlets cooler’s do not maintain brand order


9. OUTLET OWNERS SHOULD UNDERSTAND THE IMPORTANCE OF RED
NORMS AS THEY HELP IN THE MOVEMENT OF SALES

100

80

60
Yes
40 No

20

0
Awarenessof RED

( FIGURE 4.9 )
According to the survey 93%, outlet owners say that they are aware
of RED while the 7% of outlet owners are not available to answer the
question
CHAPTER – V

Findings

Conclusions

Implications

Recommendations

Limitations

(5.1)Findings
 Though it is obvious that coke has a major share in the market, it
seems that new strategies under RED concept have definitely the
reason, this has indeed boosted the sales for the company.

 Coca-Cola is the leading soft drink brand in Hyderabad region &


most selling brand is Thumps Up, Sprite and Maaza

 As per the outlet owners, the product, which is seen is sold i.e. "Jo
Dikhta Hai Woh Bikta Hai". They do consider that it is because of the
activation elements.
 A Market developer who ensures that the cooler is in the prime
Position, all brands are available in the cooler and the shelf, all
brands are displayed in brand order i.e. COLOJ-K, does bring in some
effect in sales.

 Few activation elements like Table Top, Glow Shine Board, Hanger;
Road Stand plays a major role by inducing a desire in the customer
mind to buy the drink, in turn increasing the sales of the company

 Purity in the cooler does project the quality maintained by coke

 It is observed that there is a shortage in the supply of certain brands


unfortunately because the company could not cope up with the
demand during the season.

(5.2)Conclusion
 Visiting outlets of different kinds in the market and observe
the functioning of merchandising standards in the outlets for 3
weeks and after survey of about 150 outlets in the surrounding
areas of secunderabad, has made it very clear that executing the
merchandising standards in the right way daily, keeping Coca-Cola
ahead of its competitor by increasing the sales and the profits.

 Lastly concluding, RED is indeed the reason why the company


is in a better position reaping profits through proper execution.

(5.3)Implications

 Necessary steps to be taken to activate outlets where Activation


Elements are missing, especially in the low-income locality.

 Need to educate the outlet owners the importance of brand order


i.e., COLOJ-K and if required persuade them to maintain the
brand order as brand availability is crucial.

 An MD should advice the effects of purity in the cooler.

 Prime position of the cooler enhances the visibility of the product,


which influences the consumer to buy the product.

 There were instances of product not being delivered to the outlet


by the delivery people for this there should be clear
communication between the MD’s, ESM’s and the delivery
people.

 A regular visit need to be exercised by the MD’s to all the outlets


because during observation some outlets owners complain
regarding the same and the MD reason for this was the order
from the outlet is only a case or two a week.
(5.4)Recommendations

 Activation elements should be made available at outlets where


they are absent.

 MD’s for that matter anyone above him has to ensure that the
cooler installed in the outlet is not being used for personal
purpose

 ESM’s have to see that the delivery people are delivering the
product to the outlet without neglecting

 There should be aggressive marketing for brand building even in


the low-income locality

 All the Non-RED outlets should be converted in to RED outlets by


educating them.

 Customer cooler request should be met at least with a cooler,


which is not in use, when company does not have a new one

 Most of the outlet owners do not understand the importance of


brand order, this should be explained by the concerned people to
the outlet owners

 There is brand availability in the outlets but it is of no use without


visibility of the same. Need to ensure that there is also visibility
of the product

 Need to see that stock keeping unit (SKU) level in the outlets and
warehouses, is ample to reduce stock shortages
(5.5)Limitations

There were certain limitations during the survey though measures are
taken. Below are the lists of limitations encountered during the survey.

 Many of the Outlet owners were not supportive to answer the


questionnaire

 Most of the survey was confined to low-income locality group only.

 During the season, it is high time for the marketers due to which
there was lack of support, which is important during the survey.

 Survey was not carried out at all the income groups

 Some Outlet owners were not present during the survey due to
which some questions remain unanswered

 Most of the answers for questions pertaining to cooler and its


contents were not answered as the cooler is located in the house
which happens to be the outlet in the low-income locality
 Sole purpose of the questionnaire was to understand the
effectiveness and efficiency of the RED outlet. This sole objective
was killed by the visit to Non-RED outlet because this visit to Non-
RED outlet answers only two questions.

CHAPTER – VI

Questionnaire
Questionnaire

Outlet Name: ……………………................................................ Location:


…………………………………………………

Market Developer Name…………………………………………………….

1. Outlet serves Exclusively Coke ( ) Shared (


)

2. If Shared then
why………………………………………………………………………………………………………
……………

3. Outlet Type: Grocery ( ) E & D Type I ( ) E&D Type II ( )


Convenience ( )

4. VPO Class: Diamond ( ) Gold ( ) Silver


( ) Bronze ( )
5. Cooler size: 4 cc / vc 7 cc / vc 9 cc / vc 11vc
20vc 30vc

6. Presence of cooler is it : Company Cooler ( ) OYA (


) Family Fridge ( )

7. If it is, Company Cooler is it in the primary position. Yes ( ) No


( )

8. Is the Cooler 100% Pure? Yes ( )


No ( )

9. Brand availability in the Cooler/shelf Yes ( )


No ( )

10. Is the Brand Order maintained by the outlet Yes ( )


No ( )

11. Are the Activation Elements as per the standards? Yes ( )


No ( )

12. Is the customer aware of RED? Yes ( )


No ( )
13. If yes in which way does the outlet benefited by the RED strategy
……………………………………………..................
……………………………………………………………………………………

14. Any Suggestions


……………………………………………………………………………………………………………
……………………………………

Bibliography

REFERENCES

BOOKS AUTHORS
Marketing Research : Naresh Malhotra

Research Methodology : C. R. Kothari

WEBSITES

www.coca-colaindia.com

www.google.com

www.quickmba.com

Employees of Coca-Cola especially the Sales Team Leader, Market


Developer and ESM