A RESEARCH REPORT ON

RED RIGHT EXECUTION DAILY

SUMMER TRAINING

For WAVE BEVERAGES Pvt. Ltd.

Project Report

UNDER GUIDANCE OF

SUBMITTED BY

Mr. Vishal Mehra

Harish Kalia

GLOBAL INSTITUTE OF MANAGEMENT AMRITSAR
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ACKNOWLEDGEMENT

The word at our command are very less to render our gratitude to all who help me Nothing is a single man’s effort. Cooperation and coordination of various people go into the successful implementation. It is a great pleasure to have the opportunity to extent our heart-felt thank to everybody who helped me through the successful completion of the research report. .First of all I would like to thank my project guide Mr.Ankit Garg who kindled my path towards the completion of research project I offer appreciation to my parents and all my friends for their ever-willing cooperation and moral support. And at last but not the least, I thank the Almighty who is always with me.

INDEX
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TITLE ACKNOWLEDGEMENT CHAPTER 1:
1.1 INDUSTRY PROFILE 1.2 COMPANY PROFILE 1.3 MISSION AND VISION OF COCA COLA COMPANY 1.4 PRODUCTS 1.5 ORGANIZATION STRUCTURE 1.6 WBPL PROFILE 1.7 SWOT ANALYSIS CHAPTER 2: 2.1 INRODUCTION AND OBJECTIVES 2.2 RESEARCH METHODOLGY 2.3 REVIEW OF LITERATURE CHAPTER 3: 3.1 ASSIGNMENT-1 3.2 MARKET SEGMENTATION 3.3 ASSIGNMENT-2 CHAPTER 4: 4.1 DATA ANALYSIS AND INTERPRETATION 4.2 EXECUTIVE SUMMARY 4.3 CONCLUSION 4.4 FINDINGS, SUGGESTIONS, RECOMMENDATIONS 4.5 LEARNING EXPERIENCE REFERNCES SCORING SHEET CHAPTER 1

PAGE NO.

4-11 12-21 22 25-30 43 46 50 53-59 60-61 62-65 66 67-70 71 72-82 83 84 85-87 88

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1. INDUSTRIAL PROFILE 1.1 SOFT DRINKS INDUSTRY IN INDIA Soft drinks can trace their history back to the mineral water found in natural springs. Bathing in natural springs has long been considered a healthy thing to do; and mineral water was said to have curative powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind the bubbles in natural mineral water. The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the Compagnie de Limonadiers of Paris were granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians. JOSEPH PRIESTLEY In 1767, the first drinkable man-made glass of carbonated water was created by Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced in large amounts. Soft drinks by definition are carbonated drinks that are non-alcoholic. Carbonated soft drinks are also refereed to as soda, soda pop, pop, or tonic. • • • • • • 1798 The term "soda water" first coined. 1810 First U.S. patent issued for the manufacture of imitation mineral waters. 1819 The "soda fountain" patented by Samuel Fahnestock. 1835 The first bottled soda water in the U.S. 1850 A manual hand & foot operated filling & corking device, first used for bottling soda water. 1851 Ginger ale created in Ireland. 4

• • • • • • • • • • • • • • • • • • • • • • •

1861 The term "pop" first coined. 1874 The first ice-cream soda sold. 1876 Root beer mass produced for public sale. 1881 The first cola-flavored beverage introduced. 1885 Charles Aderton invented "Dr Pepper" in Waco, Texas. 1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia. 1892 William Painter invented the crown bottle cap. 1898 "Pepsi-Cola" is invented by Caleb Bradham. 1899 The first patent issued for a glass blowing machine, used to produce glass bottles. 1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles. 1919 The American Bottlers of Carbonated Beverages formed. 1920 The U.S. Census reported that more than 5,000 bottlers now exist. Early 1920's the first automatic vending machines dispensed sodas into cups. 1923 Six-pack soft drink cartons called "Hom-Paks" created. 1929 The Howdy Company debuted its new drink "Bib-Label Lithiated LemonLime Sodas" later called "7 up". Invented by Charles Leiper Grigg. 1934 Applied color labels first used on soft drink bottles, the coloring was baked on the face of the bottle. 1952 The first diet soft drink sold called the "No-Cal Beverage" a gingerale sold by Kirsch. 1957 The first aluminum cans used. 1959 The first diet cola sold. 1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA. The pull-ring tab was invented by Alcoa. 1963 The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Fraze of Kettering, Ohio. 1965 Soft drinks in cans dispensed from vending machines. 1965 The resealable top invented. 5

1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association.

1.

1970 Plastic bottles are used for soft drinks.

BEVERAGES

Alcoholic

Non-Alcoholic

Carbonated

Non-Carbonated

Cola

Non-Cola

Non-Cola

Since the early 1990’s Coca-Cola Corporation and PepsiCo have been combating on what is known as the “Beverage Battlefield” in India. Today India is one of the most sought after countries for foreign investments because of their continually growing market opportunities. However during Coca-Cola and Pepsi’s attempts to broaden their global consumer bases both companies encountered several obstructions on their pursuits of conquering the Indian soft drink market.

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1.2 MARKET GROWTH Soft drink market size for FY00 was around 270 m.n cases (6480mn bottles). The market witnessed 5- 6% growth in the early‘90s. Presently the market growth has growth rate of 7- 8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000 mn bottles. 1.3 SOFT DRINK PRODUCTION AREA The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango flavored drinks. Diet coke presently constitutes just 0.7% of the total carbonated beverage market. 1.4 GROWTH PROMOTIONAL ACTIVITIES The government has adopted liberalized policies for the soft drink trade to give the industry a boast and promote the Indian brands internationally. Although the import and manufacture of international brands like Pepsi and Coke is enhanced in India the local brands are being stabilized by advertisements, good quality and low cost. The soft drinks market till early 1990s was in hands of domestic players like campa, thumps up, Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the market has come totally under their control. The distribution network of Coca cola had6.5 lakh outlets across the country in FY00, which the company is planning to increase to 8 lakhs by FY01. On the other hand Pepsi Co's distribution network had 6 lakh outlets across the country during FY00 which it is planning to increase to 7.5 Lakh by FY01.

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1.5 TYPES OF AVAILIBILITY PACKS OF SOFT DRINKS Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption. Fountains also dispense them in disposable containers Nonalcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under non carbonated category. The market can also be segmented on the basis of types of products into cola products and non-cola products. Cola products account for nearly 61-62% of the total soft drinks market. The brands that fall in this category are Pepsi, CocaCola, Thumps Up, diet coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.

1.6 INTIAL DIFFICULTIES From a historical standpoint, Coca-Cola and Pepsi were facing obstructions even before entering the market in the late 1980’s. Coca-Cola’s past venture in India had ended on bad terms with the Indian government when they refused to offer up their trade secrets. During the absence of foreign investment in the soft drink industry in India a local company, Parle, became the market leader. Parle invested a great deal into their leading brand, Thums Up, and played a dominant role in the soft drink industry until the liberalization of the Indian economy in 1991. After this time many of the political and legal obstacles facing Coca-Cola and Pepsi were lessened. 1.7 POLITICAL CHALLENGES Other political challenges hindered the success of Coca-Cola and Pepsi in India as well. In 2003, when the United States and Britain invaded Iraq, the All-India Anti-Imperialist Forum called a boycott on goods from America and India. Indian’s protested American companies for the war and specifically targeted Coca-Cola and Pepsi products. While 9

the war was beyond control for these two companies, management perhaps could’ve done more to not only attempt to predict the backlash from Indian consumers due to the war, but also could’ve created advertisement campaigns to address the situation. While political and legal factors produced problems for Coca-Cola and Pepsi, both Coca-Cola and Pepsi did a lot of things to prevent that situation from happening. Both companies heavily participated in the cultural festival of Navratri in western India to promote their products and create brand awareness in a culturally traditional setting. The companies also produced television and print advertisements that linked important Indian themes to their products by “building a connect using the relevant local idioms” Coca-Cola and Pepsi both utilized popular Indian sporting events, athletes, and celebrities to endorse their products. Both companies could’ve made the mistake of using American celebrities or already made American commercials to advertise their products in India, but instead made the right move by making advertisements to specifically target their foreign market. 1.8 PRICING POLICY FOR INDIAN MARKET Coca-Cola and Pepsi also made the right moves by adapting to cultural barriers in India. One such barrier was the affordability of products for Indians. Because India is a country where people are known to live on very little a day, the idea of getting people to spend what little they have on a soft drink could be quite a stretch. However Coca-Cola India went with an aggressive pricing policy and reduced the price of their soft drinks in 2003 from 15% to 25% nationwide. To compete competitively in the market, Pepsi reduced their prices as well. This move allowed both companies to offer products that were affordable to the target market in India but also encouraged more Indians to consume Pepsi and Coca-Cola products. Both companies also created smaller sized bottles to allow for lower prices for Indian consumers. Coca-Cola and Pepsi created bottles ranging in size from 200 ml to 500 ml to adapt to cultural needs and increase their sales. By offering smaller sized bottles many consumers also increased the frequency in which they were purchasing the soft drinks. 10

1.9 COCACOLA IN INDIA Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveals its formula to the government and reduces its equity stake as required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Coke’s acquisition of local popular Indian brands including Thums Up (the most trusted brand in India21), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also strong consumer preference. This combination of local and global brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes while also tapping into traditional domestic markets. Leading Indian brands joined the Company's international family of brands, including Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched the Kinley water brand and in 2001, Shock energy drink and the powdered concentrate Sun fill hit the market. From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one of the country’s top international investors.22 by 2003, Coca-Cola India had won the prestigious Woodruf Cup from among 22 divisions of the Company based on three broad parameters of volume, profitability, and quality. Coca-Cola India achieved 39% volume growth in 2002 while the industry grew 23% nationally and the Company reached breakeven Profitability in the region for the first time.23 Encouraged by its 2002 performance, Coca-Cola India announced plans to double its capacity at an investment of $125 million (Rs. 750 crore) between September 2002 and March 2003.24 Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven wholly-owned bottling operations supplemented by seventeen franchiseeowned bottling operations and a network of twenty-nine contract-packers to manufacture a range of products for the company. The complete manufacturing process had a documented quality control and assurance program including over 400 tests 11

performed throughout the process. The complexity of the consumer soft drink market demanded a distribution process to support 700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay three wheelers, and trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the cities.25 In addition to its own employees, Coke indirectly created employment for another 125,000 Indians through its procurement, supply, and distribution networks.

CHAPTER 2

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2. COMPANY PROFILE 2.1 INTRODUCTION OF THE COCA COLA COMPANY Coca-Cola touches the lives of millions of people each and everyday from special occasion to exceptional moments in everyday life, Coca-Cola is there. The brand has become very special part of people’s life. There is much in our world to celebrate, refresh, strengthen and protect. The Coca-Cola Company is a vibrant network of people, in over 200 countries, putting citizenship into action. Through their actions as local citizens, they strive everyday to refresh the marketplace, protect the environment and strengthen over communities. The Coca-Cola company is on a journey, it is a bold journey, inspired by their simple desire for sustainable growth of fueled by deep conviction that collectively can create anything the company desires. World of coca cola encompasses the rich history and process of the refreshing beverage that was created here in ATLANTA over 110 years ago. While coca cola was first served at a small pharmacy soda foundation near underground Atlanta, soft drink is now being purchased in over 200 countries across the globe. In fact, it is now severed nearly 1 billion times a day. You might say that when the world wants refreshment the world turns to Coca-Cola. World of Coca-Cola capture all the excitement of this world famous product, not only through its exhibits, but also through its unique architecture style. Visitors pass under an enormous three-dimensional Coca-Cola globe suspended 18 feet over the entrance, then step in to a three story sky lit atrium from there visitors move at their own pace through an easy to follow series of fun and fascinating exhibit galleries.

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At the late 1930s Barnes soda jerk will demonstrate how an early Coca-Cola was prepared. Move ahead into the International Video Lounge and the “Taste of the world” an international sampler of cold soft drinks distributed by the Coca-Cola company but not available in U.S.

2.2 BELIFS OF THE COMPANY We're paying attention to what the world wants to drink. We're proud to say that we market four of the top-five soft drinks in the world and rank No. 1 in sales of carbonated soft drinks globally. Did you know that globally we also rank No. 1 in juice and juice drinks, No. 2 in sports drinks and No. 3 in bottled water?

We believe in creating beverages for life. In the past two years, we have expanded our portfolio of beverages that provide vitamins, nutrients and other beneficial ingredients. We now have more than 400 brands that include nearly 2,400 beverage products.

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We believe in preserving and protecting water resources. Protecting and improving access to and the availability of water remains one of our long-term goals. We partner with many organizations, governments and local communities to develop and implement sustainable water initiatives around the world.

We are committed to supporting our communities. The Coca-Cola system (the Company and our bottling partners) has a comprehensive HIV/AIDS health care program in Africa, covering nearly 60,000 employees, their spouses and their children. We have also reached millions of people in Africa through our HIV/AIDS community awareness programs

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We are a part of local businesses around the world. The Coca-Cola system's customers are the grocers, retailers, street vendors and store owners who sell our products to our consumers. We have millions of these partners in the more than 200 countries where we operate.

We have room to grow profitably. Approximately 50 billion times a day, someone drinks a beverage. Our beverages are enjoyed more than 1.3 billion of those times. That means there are over 48 billion beverage choices to capture. 16

2.3 HISTORY OF THE COMPANY In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. 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. John Stith Pemberton

John Stith Pemberton Born Died Resting place Nationality Occupation Known for January 8, 1831 Georgia August 16, 1888 (aged 57) Linwood Cemetery in Columbus, Georgia United States Druggist Coca-Cola

The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pemberton’s French Wine Cola in 1885.He may have been inspired by the formidable success of Vin Mariani, a European coca wine. 17

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Cola. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta journal. By 1888, three versions of Coca-Cola—sold by three separate businesses—were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version of the product. John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.

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Old German Coca-Cola bottle opener In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation), and in 1910 Candler had the earliest records of the company burned, further obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status of a national icon for the USA. In 1935, it was certified kosher by Rabbi Tobia Geffen, after the company made minor changes in the sourcing of some ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. 19

Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design that is now so familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers. quantities, as an over-the-counter remedy for nausea or mildly upset stomach. 2.3.1 BIRTH OF COCA COLA 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 at the public 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 finny thing was that it cost John Pemberton over $70 in expenses, 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. 2.3.2 ASA CANDLER In 1887, another Atlanta pharmacist and business, Asa Candler bought the formula for Coca Cola from inventor John Pemberton for $2,300. by the late 1890s, Coca Cola was one of America’s most popular fountain drinks, largely due to Candler’s 20

aggressive marketing of the product. With Asa Candler, now at the helm, the Coca Cola Company increased syrup sales by over 4000% between 1890 and 1900. Advertising was an important factor in John Pemberton and Asa 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. 2.3.4 DEATH OF SODA FOUNTAIN-RISE OF BOTTLING INDUSTRY 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 became popular. 2.3.5 21st CENTURY On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet product, "Coca-Cola Zero", sweetened partly with a blend of aspartame and acesulfame potassium. Recently CocaCola has begun to sell a new "healthy soda": Diet Coke with vitamins B6, B12, Magnesium, Niacin, and Zinc, marketed as "Diet Coke Plus." On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968. In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no 21

longer in production, eliminating the need to differentiate between the two. The formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image.

2.3.6 THE MEN WHO MADE COCA-COLA 1885 John Pemberton created coca cola 1886 Frank Robinson arrived and instantly devoted all his time to manufacture and promote the drink. 1887 Asa Candler buys the rights of the secret Coca Cola formula and along with Charlie Pemberton and wool folk walker files for the incorporation of the Coca Cola Company 1888 Benjamin Thomson and Joseph Whitehead began to the now famous drink, this was a success. 1903 Sam Dabbs takes charge of sales. 1909 Harold Hirsh assumes charge of the legal affairs. 1910 Earl Dean designs and produces the unique “hobble skirt” bottle. 1916 Horward Candler takes over as president. 1917 Archie Lee revolutionizes the Coca-Cola advertising. 1923 Robert Woodruff becomes the president. 1939 Arhur Acklin assumes charge as president 1954 Frank Harrold brings Coca Cola in India. 1955 Bill Robinson is appointed president. 1972 Roberto Goizueta is appointed president. 1994 Dough Lvester is appointed president 1999 Douglas Daft is appointed president. 22

2.4 COCA COLA VISION & MISSION 2.4.1 COCACOLA: VISION Provide exceptional strategic leadership in Coca-Cola India System resulting in consumer and customer preferences and loyalty through Coca-Cola’s commitment to them and in highly profitable Coca cola branded beverage system. 2.4.2 COCACOLA: MISSION Create consumer products services and communications customers service and bottling system strategy process 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 profit through the use of finished drinks.  Bottlers as an opportunity to make reasonable to grow profits and value added  Suppliers as an opportunity to make reasonable when creating real value added in environment of system wide teamwork, flexible business system and continuous improvement.  Indian society in form of contribution to economic and social development.

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2.5 POSITION IN THE LIFE CYCLE Coca-Cola is currently going through the maturity stage. This maturity stage lasts longer than all other stages. Management has to pay special attention to products during this stage of the product life-cycle. Since its beginning in the spring of 1886 Coca-Cola has become the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. The Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverages in the world. The Company and its subsidiaries employ nearly 31,000 people around the world. Its headquarters is in Atlanta, Georgia. During the maturity stage, products usually go through a slowdown in sales growth. According to Coca-Cola's 2001 annual report, sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coca-Cola enjoyed during its growth stage.

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BUSINESS CHAIN OF COCA-COLA INDIA

Coca-Cola India division, Gurgaon

Manufactures Concentrate, Beverage base and Syrup

Regional Bottlers COBO/FOBO

Manufactures finished Bottles/ Cans/ Fountain Syrup

Customers

Consumers

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 Brand Name: Coca-Cola Drink Type: Soft Drink

Coca-Cola: Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world.  Brand Name: Thums Up Drink Type: Soft Drink

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Type Manufacturer Country of origin Introduced Related products

Cola The Coca-Cola Company India 1977 Coca-Cola, Pepsi, Campa Cola

 Brand Name: Limca Drink Type: Soft Drink

Limca: This thirst-quenching beverage features a fresh, light lemon-lime taste and fun-loving attitude. It's a home-grown, national treasure in India, where it was acquired by The Coca-Cola Company in 1993. Limca continues to build a loyal following among young adults who love the lighthearted way it complements the best moments of their lives. 27

Available in the following flavor: Lemon Lime. Available in the following locations: India, Nigeria, United Arab Emirates and Zambia.

 Brand Name: Sprite Drink Type: Soft Drink

Sprite is a transparent, lemon-lime flavored, caffeine free soft drink, produced 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, which had begun as "Lithiated Lemon" in 1929. It comes in a primarily silver, green, and blue can or a green transparent bottle with a primarily green and blue label.  Brand Name: Fanta Drink Type: Soft Drink

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Fanta: Available in Europe since the 1940s, Fanta was introduced in the United States in 1960. Consumers around the world, particularly teens, fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brand's fun, playful personality, which goes hand in hand with its bright color, bold fruit taste and tingly carbonation. Beginning in 2009, the U.S. markets will see Fanta Regular Orange, Fanta Zero Orange, Fanta Apple and Fanta Grapefruit in 100% natural flavors.

 Brand Name: Maaza Drink Type: Juice/Juice Drink

Maaza: With the real fruit taste kids love, plus added calcium, Maaza's tagline, 29

"Yaari-Dosti Taaza Maaza," means "friendship moments with fresh Maaza" in Hindi. Available in the following flavors: Mango, Orange and Pineapple. Available in the following location: India  Brand Name: Kinley Drink Type: Water

Kinley: Kinley is high quality bottled water processed with added minerals popular among adults who seek a better quality of life and a healthy lifestyle. Available in the following flavor: Unflavored. Available in the following locations: Afghanistan, India, Maldives and Pakistan

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 Brand Name: Minute Maid Pulpy orange Drink Type: juice

Minute Maid Pulpy Orange: Minute Maid is a product line of beverages, usually associated with lemonade or orange juice, but now extends to soft drinks of many kinds, including Hi-C. Minute Maid is sold under Cappy brand in Central Europe and under Fruitopia in Germany

 Brand Name: Georgia Drink Type: Coffee Georgia: A ready-to-serve canned coffee, Georgia’s flavor blends are a favorite among hard-working people.

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2.6 COMPETETIVE AREA Competitive area among Coke & Pepsi Coca-Cola India Pvt Ltd maintained its leading position in soft drinks in India, followed by PepsiCo India Holdings Pvt Ltd in 2006. Whilst the retail volume shares of CocaCola India and PepsiCo India slipped in 2006, as a result of the growing health concerns caused by the aftermath of the pesticides controversy, both maintained a comfortable lead over the other manufacturers. Parle, Bisleri Ltd has steadily gained shares from the carbonates giants over the review period, to emerge as the third ranked company in 2006. The battleground for beverages has moved from carbonates to bottled water and fruit/vegetable juice, with manufacturers turning their attention towards these healthier beverages, as consumer interest continues to surge forward. A number of new players have entered fruit/vegetable juice and bottled water, vying for a slice of the growing pie. While cricket had always been the most popular sport in India, with new technology coming into cricket from coverage to sports gear to day/night versions of the game, it was set to acquire the status of a religion in the sub-continent. Pepsi picked up the opportunity early on by not only contracting the rights to all Tests and One Day 32

Internationals (ODIs) played in India, but also signing up top performers early such as Sachin Tendulkar and Rahul Dravid and creating some very cutting edge and memorable advertising campaigns with them. The distribution network of Coca cola had 6.5 lakh outlets across the country, which the company is planning to increase to 8 lakhs. On the other hand Pepsi Co's distribution network had 6 lakh outlets across the country which it is planning to increase to 7.5 Lakh.

2.6.1 ADVERTISING Advertising is a non promotion of goods & services by sponsor who can identify and who has paid for his communication. Their purpose of advertisement is to sell something goods or services, idea, person or place. BRAND AMBASSDORS & TV COMMERCIALS

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COLA WAR (neck to neck) Bollywood rising stars Asin (left) for Pepsico’s Mirinda, Genelia D’souza (Right) for coca cola’s Fanta

.

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Tennis star Sania Mirza for Sprite

Bollywood star Aamir Khan for Coke

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Bollywood star Akshay kumar for Thums up

Sprite “seedhi baat” TV add

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Limca “fresh ho jao” TV add

Minute maid pulpy orange TV add

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Bollywood superstar Shahrukh Khan new Brand Ambassador of Sprite

PROMOTION BY THE COMPANY Promotional strategy during IPL matches

Lucky Coupon Dinner with kings XI Punjab 38

Sprite “kholega toh bolega” IPL Season 2

Riding on the passion of T20 cricket amongst consumers, Brand Sprite, Official Pouring Partner of Kolkata Knight Riders (KKR) had announced the launch of a Special edition ‘Sprite Kolkata Knight Riders’ bottle. The latest initiative was a part of brand Sprite’s larger consumer engagement program to leverage the second season of DLF IPL, 2009. Independent research reports have shown, out of the 230 million mobile phone users in the country, the youth continues to be the largest users of mobile phones. Combining this key insight with the passion of T20 cricket, company had launched a special edition ‘Sprite Kolkata Knight Riders’ bottle with insignia of key players. Complimenting the innovation, Sprite was also rolling out a special ‘Kholega Toh Milega’ digital initiative in association with KKR and Nokia. In the offer consumers just need to drink Sprite and look out for a unique 9 digit code under the crown and SMS the code. Lucky consumers get once-in-a-lifetime opportunity to meet Shahrukh Khan and members of the KKR team. In addition, consumers also get a chance to win a Nokia mobile phone every hour. The entire initiative was applicable RGB and also on all PET packs of Sprite. To create awareness about ‘Kholega Toh Milega’ digital initiative, the company had launched a mass media campaign featuring Shahrukh Khan, owner KKR, to be telecast on all the leading TV channels across India.

39

2.6.2 PROMOTION DURING OFF SEASON Limca Launches ‘Laptop Ki Barish’ Consumer Initiative

Coca-Cola India has announced the launch of its innovative ‘Limca ‘Laptop Ki Barish’ consumer initiative nationally. As part of this unique initiative a computer generated lucky draw would provide consumers a chance to win “HP Mini Laptop” every hour for the next 45 days. The initiative is applicable to 200ml, 300ml returnable glass bottles (RGB) and also on 500 ml, 600 ml 1.25, 1.5, 2 & 2.25 liters PET bottles of Limca. As part of the under the crown initiative consumers just need to SMS “LIMCA” followed by a 9 digit unique code to 58558 from their GSM / CDMA mobile phones. The national initiative is designed to leverage the popularity of digital media like mobile phones (Both GSM & CDMA & IVRS), internet and laptops amongst soft drink consumers and would run from 1st August to 14th September, 2009

40

2.6.3 COMPARISON OF PRODUTS OF COCA-COLA WITH THAT OF PEPSI

41

42

43

2.7 ORGANISATION STRUCTURE IN COCA COLA, INDIA

Vice President Supply Chain

Chief Finance Officer

HR director

CHIEF EXECUTIVE OFFICER

Vice President BSG

Regional Vice President (north)

Regional Vice President (central)

44

2.7.1 SALES DEPARTMENT

45

AWARDS & RECOGNITION  Corporate Social Responsibility Awards, Coca-Cola India (May 2009).  Most Socially Responsible Company 2008, Coca-Cola Nigeria Limited, Social Enterprise Reports and Award (SERA) 2008, (August 2008)  Foods and Beverages Most Socially Responsible Company in Nigeria 2008, Coca-Cola Nigeria Limited, Social Enterprise Reports and Award (SERA) 2008, (August 2008)  One of Ten "Most-Admired" Companies in Germany, The Coca-Cola Company, Manager Magazin (February 2008)  Philanthropist of the Year, Coca-Cola Ukraine, World of Child, Ukrainian Fund of Philanthropists and Ukraine 3000 (December 2007)  Named Strategic Partners in Poland's Responsible Business Forum, Coca-Cola Poland Services (CCPS) and Coca-Cola HBC Polska (CCHBCP), Responsible Business Forum (FOB) (December 2007)  No. 2, 2007 Corporate Social Responsibility Study, Coca-Cola Mexico, Excélsior (December 2007)  World's Most Accountable Corporations, One World Trust 2007 Global Accountability Report (December 2007)  Asia Society Leadership Award (November 2007)  No. 2, India's Most Respected Fast Moving Consumer Goods Company, and No. 7, Most Respected Multinational Corporation in India, Coca-Cola India, BusinessWorld, in conjunction with the Indian Market Research Bureau (November 2007)  No. 13, World's Most Respected Companies survey, Barron's (September 2007)  No. 1, Food and Beverage Industry Category, Best Ethical Quote Progress and Best Reported Performance Categories (July 2007)  No. 2, Leaders Across All Sectors for Best Reported Performance, Ethical Quote (July 2007)  FTSE4Good Index of Socially Responsible Companies (July 2007). 46

2.9 WAVE BEVERAGES PRIVATE LIMITED (WBPL) (Franchise of coca cola at Amritsar) 2.9.1 INTRODUCTION The company was established by late S. Teja Singh Kandhari and his son S. Abhinash Singh Kandhari, in 1969 under the name of Amritsar Bottling Company as a Franchise of Parle (Export Pvt. Ltd.) In 1997, this name was changed to Amritsar Beverage Ltd. Initially only two flavors were introduced, Gold Spot and Kismat. Limca was introduced in 1972 and Cola flavored Thums Up in 1978 due to the exit of Coca-Cola in 1973. With the re-entry of Coca-Cola, this company added Coca-Cola in the product range so Coca-Cola joined hands with Parle. Coca-Cola is the most selling brand in Amritsar among the categories of soft drinks. In 2005, Wave Beverages Pvt.Ltd. (WBPL) was formed to carry on the business. It became a part of the Chadda Group of Industries. The company has two manufacturing units ACCP1 and ACCP2. ACCP1 manufactures in RGB and has a capacity of 220bpm. ACCP2 manufactures CSD with the capacity of 600bpm. In the year 2007 the company added 120bpm PET manufacturing unit keeping in view the changing trend of consumption. It manufactures 2ltr and 600ml bottles. Since 2005 WBPL has accomplished so many targets and has become one of the most respected franchisee of Coca-Cola. It has won many accolades for parent company year after year.

47

48

2.9.2 DISTRIBUTION PROCESS WBPL has a very wide and well managed distribution system in which salesmen have a full responsibility to distribute the product to different and diverse part of the Amritsar City. The distribution system is well structured in such a way that it will fulfill the demands of retailers and customer at the right time and at the right place. The typical distribution system of WBPL is:

PRODUCTION

PLANT WARE HOUSE

CUSTOMER

DEPOT WARE HOUSE RETAIL SHELF

RETAIL STOCK

49

2.9.3 SUPPLY CHAIN OF THE COMPANY

Manufacturing Plant, JANDIALA

Sales and Distribution Operations

Distributors

Outlets

Outlets 50

CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION 2.9.4 VISICOOLER PROVIDING COMPANIES • • • • Whirlpool India Limited Godrej Appliances Western refrigerator limited Rockwel Industries

2.8 SWOT ANALYSIS OF THE COMPANY 1. STRENGTHS:• DISTRIBUTION NETWORK: The Company has a strong distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles. • STRONG BRANDS: The Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated that the Coca-Cola brand was worth $70.45billion. People all over the world enjoy coca cola products more than 1.3 billion times per day. • COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations, which minimizes wastage of both time and resources, leads to lowering of costs. 2: WEAKNESSES: 51

LOW EXPORT LEVELS: The brands produced by the company are brands produced world wide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola .Therefore, people abroad, are apprehensive about Coca-Cola products from India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company’s operations are carried out on a small scale and due to Government restrictions and ‘red-tapism’, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.

3: OPPORTUNITIES: • LARGE DOMESTIC MARKETS: Coca-Cola India claims a 60.1 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 18.1 per cent market share, chiefly led by Limca. • EXPORT POTENTIAL: The Company can come up with new products, which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India. • HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. The beverage industry can take advantage of such a situation and enhance their sales. 4: THREATS: • IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years .If consumers shift onto imported beverages rather than 52

have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. • TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. Therefore, this can limit the growth of the Company and pose problems. • SLOWDOWN IN RURAL DEMAND: Low per capita disposable income, large number of daily wage earners, poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the company’s products. • CHANGING OF CONSUMERS PREFERENCE: The Company should keep an eye on the changing preferences of the consumers.

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CHAPTER 3 3. PROJECT PROFILE 3.1 INTRODUCTION OF RED (RIGHT EXECUTION DAILY) RED (RIGHT EXECUTION DAILY) is a tool to measure sales team and distributors’ performance in the outlets with respect to all parameters of execution.  Red lays down standards of visicooler, brand norms, and in-outlet activation elements.  It lays down specific norms and elements for enhanced in-outlet Brand execution.  It allows for development of short, mid and long term execution strategies, tactics and action plans.  It tracks brands and brand pack penetration in outlets.  Due to the audit characteristic of RED, each brand can be measured against its specific execution goals, and can be precisely monitored.

COOLER SPECIFICATION

54

ACTIVATION 3.2 RED CONCEPT (RIGHT EXECUTION DAILY) ELEMENTS RED CONCEPT

AVAILABILITY BRAND PACKS & ORDER

RED is the tool to measure the performance of the distributors in the outlets of setting up some standards or parameters of execution. It adds value to customers and consumers through Excellence in Execution at the point of sale. The main function of RED is “what can be done” in an outlet and what all should be done. It lays down standard for visicoolers, brand norms and activation element. RED is the set of norms divided into outlet wise. 1. Firstly, I have to check the cooler management i.e. the cooler that was provided by the company to the customer, are properly managed/working or not. And lastly the most important aspect of cooler management are: . Purity . Brand order 2. Secondly, I have to check the availability of the product i.e. whether the product is available to the customer or not. 3. Lastly, I have to check the activation, which is a very important because activation helps to boost the sales. Activation is done through boards i.e. glow signs flengs, combo, boards, OBM. Mostly combo boards are given 55

to the E&D outlets. And is very helpful in attracting the customers. Rack with header is provided to the Grocery outlet, which should be fully charged. Survey has done in the four topics Impurity  Brand Order  Availability  Activation 3.2.1 IMPURITY There should be no impurity in the visi cooler of the company. Impurity here refers to that brand which is presented in the visi cooler other than coke’s product. Therefore not other product of any other company may not be in the cooler. 3.2.2 BRAND ORDER The company has given a brand order to the market developers to arrange the different brands in a specific order in the cooler. The order should be in such a way Thums up  Coca cola  Sprite  Limca  Fanta  Maaza  Kinley  Pet & Juice

3.2.3 AVAILABILTY

56

Availability is done according the type of outlet. There are four type of outlet mentioned below. According to this market developer has to ensure the availability of the products in the particular outlet.

3.2.4 ACTIVATION Activation is important because it helps to boost the sales of the company. it is done through the Glow sign, DPS, flanges. Combo boards, Table tops .This boards usually gives to the E&D outlets .It helps to attract the customers. Rack with header is provided to the grocery stores.

Activation Elements Market developer must ensure that all these activation elements must available at all the outlets. Detail of activation elements must available at GROCERY STORES: 1. WARM DISPLAY RACK 2. SHELF DISPLAY

SHELF DISPLAY

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DISPLAY OF RACK 3.3 BRAND NORMS AS PER STANDARD COLOJK

VISI COOLER

Most Selling Cola, 2nd Cola, Most Selling Lime, 2nd Lime, Most Selling Orange, Most Selling Juice, 2nd Juice, Kinley. In simple way it can be described as:

58

3.3.1 BRANDS TAGLINE Thumsup Coca cola Sprite Limca Fanta Maaza Kinley - Taste the thunder - Open happiness Seedhi baat no bakwaas, clear hai Fresh ho jao Go bite Bina guthli wala aam Khud pe tu vishwas kar

3.3.2 BRAND AMBASSDORS Thumsup Coca cola Sprite -Akshay Kumar -Aamir Khan -Shahrukh Khan 59

Fanta Limca

-Genelia D’souza -Riya Sen

3.4 OBJECTIVES OF THE STUDY:  To find out the impact of brand order and purity on customers.  To study the impact of activation element on customers.  To know the distribution and marketing strategy of the company.

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CHAPTER 4 4.1 RESEARCH METHODOLOGY: 4.1.1 RESEARCH DESIGN: The research design for this study employed a descriptive survey method. 4.1.2 DATA COLLECTION: 4.1.2.1 PRIMARY DATA COLLECTION: Primary includes the following ways• • • Observation Experiment Survey

Here we include the primary method of survey Research Instruments• • RED scoring sheet Area of Survey- Amritsar City. 61

4.1.2.2 SECONDARY DATA COLLECTION: For background information, we used secondary data from the internet. And Website of Coca Cola Company and it is taken from company records. We will also ask the management at company, where I can get the training, for their records and files to get the required information.

4.2 SAMPLING DESIGN: 4.2.1 UNIVERSE: The universe of research is the outlets under the RED project of India. 4.2.2 POPULATION: All outlets which are come under RED in Amritsar city.

4.2.3 SAMPLING UNIT: The sampling unit is owners of the retail outlets in Amritsar city. 4.2.4 SAMPLE SIZE: Size of sample in research will be 120 RED outlets of Amritsar. 4.2.5 SAMPLING TECHNIQUES: Sampling technique which can be used is random sampling. 4.3 LIMITATIONS

62

Although all efforts have been taken to make the results of survey as accurate as possible but the survey suffers from the following limitations: 1) The time period of study was only for two month so it was not possible to cover all the areas and go into the depth of the problem and make analysis.
2) The area of survey was Amritsar and it was concentrated on urban area only.

3) The psychological condition varies from place to place because in many places outlet owner was not supportive. 4) The training was carried on in the peak season so market developer was not so supportive. 5) Some respondents left some of the questions unanswered either due to inability to put a strain on mind or they did not know the answer.

CHAPTER 3 REVIEW OF LITERATURE 29 Ciao members (2000) Throughout the world, there can only be a handful of people who haven’t heard of Coca Cola – even the poorest countries have Coca-cola. Although the recipe and the taste will slightly vary from one country to the next, the taste is pretty similar throughout the world. Philadelphia (1995) The plaintiff is John Bibby. The defendants are the Philadelphia Coca Cola Bottling Company (TPCCBC) and nine individual officers or employees of the TPCCBC. Founded in 1902, TPCCBC is considered the United States' third-largest black-owned 63

corporation. TPCCBC is the sixth largest Coca-Cola bottling company in the United States. Ramanvenkatamani (2009) This review not only for Coca Cola, but for other carbonated drinks like PEPSI too. These drinks contain Carbonic ACID (Carbon di-oxide and water) which slowly destroys our inner system .he said that Coca Cola-A Coal (Carbon, Carbonic ACID) Hermit (2008) In that study it is said to coca-cola a slow poison. History of Coke - 123 years back, John Pemberton was working on a coca wine (an alcoholic beverage consisting of coca and wine). His solution was a mix of coca, cola nuts and damina - and the beverage is not good for human being.Coke is probably the unhealthiest fizzy drink on the market and that is why I very rarely drink it. Though don't start drinking gallons of Sprite instead as all fizzy drinks are unhealthy and should not be drunk often.

Golffer (2007) Coke the really thing love it really cold and fizzy no pepse, it is easy to find some do drink too much brush your teeth after drinking it though not good for teeth. great on a hot summers day and for parties. Coca-Cola has been brilliantly marketed over the years and it's created a good image of itself. Coke has created a cool and sleek image of its drink over the years. Coke also has a "happy family" image. The adverts always show happy, laughing friends drinking a Coke, or a cozy image of the whole family enjoying a glass of Coke each. Patrick Paul Walsh (August 2002) Using brand-level retail data, the firm size distribution in carbonated soft drinks is shown to be an outcome of the degree to which firms have placed brands effectively 64

(store coverage) across vertical (flavors, packaging, diet attributes) segments of the market. Regularity of the firm size distribution is not disturbed by the nature of shortrun brand competition (turbulence in brand market share) within segments. Remarkably, product differentiation resulting from firms acquiring various portfolios of product attributes and stores in market evolution determines the limiting firm size distribution. Matthew Hartogh (2008) No other country has as high of a soft drink consumption rate as the U.S.; however, many international areas have been targeted as potential areas for expansion. The strategy of overseas expansion involves similar use of the differentiation and consolidation methods that are used in the U.S., but are often geared toward specific foreign populations, e.g. PepsiCo's introduction of a unique Guava-Flavored Slice in India. Selling soft drinks internationally is advantageous to soft beverage companies because they are able to sell their products overseas at a lower price since local bottling companies produce the drinks. The major competitors, therefore, are essentially responsible for selling brand names and the image that goes with them.

Mark E. Parry (1993) In the first quarter of 1993, Coca-Cola's share of mass-merchandise soft-drink sales fell 6.6 percent, while private-label soft drinks' shares in the same channel rose 16.8 percent. Much of this increase reflected the success of the Cott Corporation, which had achieved a 10 percent share in the mass-merchandise channel by selling private-label and store-brand soft drinks to Wal-Mart and other U.S. retailers. In a March 1993 interview, Cott CEO Gerald Pencer stated: "We make a product that is at least as good as, if not better than, Coke or Pepsi." He expected Cott's sales to double in the next year. Coca-Cola executives must decide how to respond to Cott's initiatives. Subhasis Ray (2008)

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The soft drink industry is yet to find its niche market in India. Despite strong marketing efforts, the penetration level of soft drinks industry in India is still below par, even when compared to its neighboring countries, like Pakistan, Thailand, Sri Lanka, let alone the US or the UK. The present state of economic growth in the sub-continent makes it a lucrative destination for the consumer goods sector, including the major players in the soft drink industry. The factors that are instrumental in making India a lucrative destination include an emerging economy with continuously increasing (i) gross domestic product; (ii) annual disposable income; (iii) population; and (iv) literacy rate (ensuring more education, more job opportunity and more purchasing power). All these factors offer a great prospect for any company to flourish. This paper explores the feasibility of selling soft drinks through the channel of educational institutions by examining one of Kolkata’s most densely populated areas. This study has revealed that the popularity and consumption of soft drinks among the younger generation (age group 16-24 years) in India is way higher than the overall average soft drink consumption among Indians. Although the ill effect of soft drinks on health is widely known, yet it is seen that the young Indian (age group 16-24 years) is not shying away from it. The paper studies the preference and habits of students. It also tries to analyze the preferences and willingness of the educational institutes (higher secondary and onwards) to sell soft drinks. The paper concludes that in India, there is a huge potential for this industry to flourish through the channel of educational institutions. Matthew Hartogh (2002) In its core competency, the Coca-Company has only one serious competitor, the PepsiCo Company, maker of Pepsi-Cola. Current market share of the two companies in the United States stands at 43.7% for Coca-Cola against 31.6% for PepsiCo. British firm Cadbury Schweppes comes in third in the American market with its 7UP and Dr. Pepper brands but does not have a head to head cola competitor for Coca-Cola. Supermarket "private label" cola brands are a substitute beverage for the big two but in terms of dollar sales, they do not cut greatly into their market share. According to the Beverage Digest 2001 survey, the top 4 brands continue to be Coke Classic, with a U.S. 66

market share of 19.9%, Pepsi-Cola, with 13.2%, followed by Diet Coke with 8.8% and Mountain Dew (a PepsiCo product) with 6.9%.

CHAPTER 5 5.1 ASSIGNMENT – 1 On the day of joining WBPL on June 7, 2010; a basic idea about RED ( Right Execution Daily) was given just to understand the market on the surface such as RED is basically a tool of the company to measure the performance of the outlets and keep a check on them according to certain norms. The proper execution of program helps the company in maintaining the market share and increasing the sales volume. Its proper execution is assessed by AC Nielson who does a regular monthly survey in order to bring to light the systematic working of WBPL. RED lays down norms for: a. Visi-Cooler 67

b. Availability c. Activation Visi-Cooler The visi-cooler should contain products related to Coke only. If there is anything wrong which is not manufactured by Coca-Cola then the visi-cooler is considered as impure and it’s the duty of the MD and the outlet owner to make it pure. The products in the visi-cooler should be arranged in the particular order. The order is known as COLOJK. CO- Cola products which includes Coca-Cola and Thums Up. L – Lemon products which includes Limca and Sprite. O- Orange products which includes Fanta. J- Juices that includes Maaza and MMPO. K- It includes Kinley water and soda. The visi-cooler has to be in the working condition with the light always kept on. Activation The activation elements make the outlet look attractive and make people aware about the products and hence increase the sale. These elements include Flange, Table Top, Racks, and Shelf Display etc. 5.2 MARKET SEGMENTATION The company has divided their outlets on the basis of the following criteria Volume  Channel 5.2.1 OUTLET VOLUME There are four types of outlets according to the volume of sales of the outletDIAMOND GOLD SILVER 800 crates & above 500-799 crates 200-499 crates 68

BRONZE

-

<200 crates

5.2.2 CHANNEL CLUSTER (A) GROCERY STORE Grocery (customer profile): Store stocking a variety of regular uses household items. The channels provide an opportunity for penetration as it propels home consumption. It includes all kirana stores, juice stall, cold drink stall, departmental stores, supermarkets, provision stores etc. Necessary Availability - 2 liter and 300ml

(B) EATING & DRINKING CHANNEL 1 Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller dhabas. These outlets offer multiple Opportunity to effect sales as people usually order something to drink along with food. It includes - Restaurants - Bars and Pubs - Dhabas - Sweet shop - Quick service restaurants (C) EATING & DRINKING CHANNEL 2 It includes minimum 5 set table & chair outlets.

(D) CONVENIENCE CHANNEL 69

Pan/bidi shops (customer profile): This segment includes PAN BIDDI outlets that stock cigarettes, mint, and confectionary. It covers STD/ISD phone booths, travel channel etc. Small outlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml.

Outlets visited with Mr. Ravi Kumar On a very first day of observation I just saw what, why, how a Market Developer (MD) works. How he maintain the market i.e. he goes to the each and every outlet and maintain the relation with the shopkeepers and try to convince the shopkeepers to set the visicoolers according to the RED norms. I just noted down the things that I saw. Outlets visited with Mr. Ravi Sharma

70

Under his guidance, another remarkable thing that happened was the experience to work in an atmosphere where high society customers are come. Here we experience the different type of attitude and working of the market. Outlets visited with Mr. Achal With him I got the chance to work in a market where the outlet owners cooperated to the fullest extent with the MD to maintain purity in the visi-cooler.

Outlets visited with Mr. Ravi Kant With his help, a step forward was taken towards the approach of RED by assessing the outlets and tries to know more about execution of RED.

Outlets visited with Mr. Manish With his help, I was able to add more knowledge about RED execution. While visiting these outlets the main problem is about purity because of the city side area

SCORING SHEET OF THE RED ACCORDING TO THE RULES AND NORMS OF THE RED.

RED Visicooler 1 2 3

Parameter Is a coca cola cooler present Is the cooler as per standard Is the cooler in prime location

D 6 5

E&D1 G S 6 5 6 5

D 6 5

E&D2 G S 6 5 6 5

Grocery D G S 6 5 6 5 6 5

Conve. D G 6 5 6 5

S 6 5

71

4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8

Availability

Activation

Is the visicooler in a working condition Is the visicooler light working Is the cooler 100% pure Is the cooler brand order compliant Total RGB-CSD RGB-Maaza Mobile-CSD Mobile-Maaza LARGE PET-CSD LARGE PET-Maaza Water Total Combo/menu board Flange/glow sign board Three tier rack/two tier rack Shelf display Shelf display/table top Flange/glow sign OBM/drinking shot Price communication Total

2 1 10 6 30 20 6 16 6 2 50 10 3 3 4 20

2 1 10 6 30 20 6 16 6 2 50 10 3 3 4 20

2 1 10 6 30 22 6 16 6 50 10 3 3 4 20

2 1 10 6 30 36 9 5 50 10 3 3 4 20

2 1 10 6 30 36 9 5 50 10 3 3 4 20

2 1 10 6 30 40 10 50 10 3 3 4 20

2 1 10 6 30 6 3 12 6 15 6 2 50 8 5 3 4 20

2 1 10 6 30 6 3 12 6 15 6 2 50 8 5 3 4 20

2 1 10 6 30 16 6 12 6 10 50 8 5 3 4 20

2 1 10 6 30 20 6 16 6 2 50 10 3 3 4 20

2 1 10 6 30 20 6 16 6

2 1 10 6 30 22 6 16 6 2 50 50 10 10 3 3 3 3 4 4 20 20

5.3 ASSIGNMENT – 2 After the one week of observation period, I was assigned the task to cover the routes of 6 ASMs (Area Sales Manager). Each ASM had around 3 MD’s with whom I covered the market of EATING & DRINKING CHANNEL 2 viz.  Mr. Harsharan Singh  Mr. Ashwani Vaid  Mr. S. S. Bedi 72

CHAPTER 6 6.1 DATA ANALYSIS & INTERPRETATION Data analysis is based upon the survey that I had conducted during my training time through visiting each and every outlet. In this analysis different things that I observe about the overall east market of the Amritsar is firstly shown that the market share, leading brand, size of visicooler in the market, different channels of coca cola Company etc. SIZE OF VISICOOLER

73

8%

2% 1%

7%

20c/s 9c/s 7c/s 4c/s
82%

2c/s

Fig.1 LEADING BRAND OF COCACOLA
Brand share 7% 6% 8%
THUMSUP COKE SPRITE LIMCA FANTA MAAZA

14% 2%

63%

Fig.2

CHANNEL OF COKE

74

5% 29% E&D CONVENIENCE GROCERY

66%

Fig.3

OUTLET BELONG TO WHICH CLASS
CLASS OUTLET

19 92 83

DIAMOND GOLD SILVER BRONZE

56
Fig. 4

MARKET SHARE 75

MARKET SHARE

29%
COKE PEPSI

71%
Fig. 5 DIVISION OF MARKET
div ision of market

20%

Fig. 6

COKE 50% 30% PEPSI OTHERS

It is just the over view of the market which clear from our survey, observation and visiting in the market. So the main data analysis and interpretation will start from the ASM MR. HARSHARAN SINGH. 6.1.1 THE DETAIL STUDY OF Mr. HARSHARAN SINGH’s ROUTE:

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On 16th July, I began conducting the survey of the market by covering the route of Mr. Harsharan Singh with the MDs named ACHAL SHARMA, SATBIR SINGH and RAVI SHARMA. They all have the different markets and routes like Lawrence road; Ajnala road, Green avenue market, Ranjit Avenue and Rani Ka Bagh having 53 E&D2 outlets which are fall under the RED. 1. VISICOOLER IN THE OUTLETS:

number of visicooler
AS PER STANDARD PRIME POSITION
44 31 51

WORKING CONDITION LIGHT WORKING 100% PURE
52

BRAND ORDER

48 53

Fig. a INTERPRETATION: From above data it is simply clear that there almost the equal shares of all the parameters of visicooler like out of 53 outlets most of the visicoolers are as per standard, at prime position etc. but the main concern is about the purity. This is the problem that I ever seen in many of the outlets and also the brand order.
AVAILIBILITY

2. AVAILIBILTY LEVEL IN THE OUTLETS:

47

49

CSD 300ml MAZZA RGB WATER

77
46

Fig. b INTERPRETATION: The above figure clearly shown that the availability is round about full and it is satisfactory because it is not a big problem and it can be resolve on route riding. 3. ACTIVATION ELEMENT PRESENT ON THE OUTLETS:
NUMBER

49

42

COMBO/MENU CARD/BOARD FLENGE/GLOW SIGN BOARD OBM PRICE COMMUNICATION

48

47

Fig. c INTERPRETATION:

78

The figure clearly shown that the activation element is quit satisfactory on the Harsharan’s route. So, there is no need for worrying but try to maintain and increase that level. 6.1.2 THE DETAIL STUDY OF S. S. BEDI’s ROUTE: On 21st July, I began conducting the survey of the market by covering the route of Mr. S. S. Bedi with the MDs named AKASH and SANDEEP SURI. They all have the different markets and routes like Golden Temple Market, Lohgarh Market having only 8 E&D2 outlets which are fall under the RED. VISICOOLER IN THE OUTLETS:

number of visicooler
AS PER STANDARD
8 1 7

PRIME POSITION WORKING CONDITION
8

LIGHT WORKING 100% PURE

8 8

BRAND ORDER

Fig. d INTERPRETATION: The above figure shown that the other parameters are satisfactory but the problem is about the purity. Here the purity problem is more because this market is inside the city where outlet owners are not much aware about the convenience of the customers and also the waiters are not much aware about it. 79

AVAILIBILTY LEVEL IN THE OUTLETS:
AVAILIBILTY

7 CSD 300ML 8 MAZZA RGB

Fig. e INTERPRETATION: From the above figure it is clear that the availability is full. There is no need to worry about the availability factor. ACTIVATION ELEMENT PRESENT ON THE OUTLETS:
ACTIVATION

7

8

COMBO/MENU BOARD FLENGE OBM

8

7

PRICE COMMUNICATION

Fig. f INTERPRETATION: 80

From the figure it is clear that the activation element is quit satisfactory, but the work has to be done to reach at the 100% level. 6.1.3 THE DETAIL STUDY OF ASHWANI VAID’s ROUTE: On 16th July, I began conducting the survey of the market by covering the route of Mr. ASHWANI VAID with the MDs VIKAS, JASPAL, RAVI KUMAR They all have the different markets and routes like Hall Bazaar, Shrifpura Market, Durgaina Mandir Market having 49 E&D2 outlets which are fall under the RED. VISICOOLER IN THE OUTLETS:
visicooler

30 18

47

As per standard Prime position Working condition Light w orking 100% purity Brand order

45 49

49

Fig. g INTERPRTATION: From the figure it is clear that all the parameters are quite satisfactory except the purity and brand order. Their areas are more preferred area by the outsiders and also by the insiders for eating and shopping. In spite of this there is a big problem of purity this totally disposes the reputation of the company. So, the MDs have to work on that.

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AVAILIBILTY LEVEL IN THE OUTLETS:

AVAILIBILTY

7 CSD 300ML 8 MAZZA RGB

Fig. h INTERPRETATION: From the above figure it is clear that the availability is full. There is no need to worry about the availability factor. ACTIVATION ELEMENT PRESENT ON THE OUTLETS:
ACTIVATION

7

8

COMBO/MENU BOARD FLENGE OBM

8

7

PRICE COMMUNICATION

Fig. i

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INTERPRETATION: From the figure it is clear that the activation element is quit satisfactory, but the work has to be done to for installing flenge, combos, and menu boards to reach at the 100% level. 6.1.4 ASM’ EXECUTION COMPARISON OF HARSHARAN SINGH’S MARKET

88 86 84 82 80 78 76 74

87.29

86.56

78.46

ACHAL

SATBIR

RAVI SHARMA

Fig. j COMPARISION OF S. S. BEDI’S MARKET
%AGE

AKASH
86 86.5

SANDEEP SURI

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COMPARISON OF ASHWANI VAID’S MARKE

7 8

7 .2 7 1

7 7

7 6

7 5 7 .4 3 7 7 .4 3 2

7 4

Ja p l sa R vi K m r a u a Va ik s

7 3

7 2

7 1

Fig. l

J s al ap

Rv Kmr ai u a

V as ik

CHAPTER 7 8.1EXECUTIVE SUMMARY

Over the last few years hundreds of companies have greatly improved their performance &the graph of growth through superior sales promotion services. Today many companies are building on these foundations and are tuning their products in Soft drink segment into a formidable competitive weapon. Sales Promotion services have become a subject of huge interest in recent years. Sales Promotion Services is growing because: 84

 In the face of ever increasing competition in organizations feel it is important to build reliable & sustainable processes with focus on strong relationships with customers.  Significant revenue & profit gains can be made from successful Sales Promotion Activities that improve efficiency & help serve customers better & faster. The different distribution channels are as follows:" 1. Eating & Drinking 2. Convenience 3. Grocery

 Activation is the key part of coca-cola marketing strategy  Company believes that soft drink sell is not a planned sell it's a impulse buying, and activation create impulse for buying  For improvement of Coca-cola market, a proper research work has done. Sales Promotion Strategies are offering new & better ways of addressing industries objectives. Coca-Cola has developed a unique sales promotion strategy that offer a unique way to increase the sales of the soft drink.

8.2 CONCLUSION RED is a worldwide project of COCA COLA Company. This project is playing a very important role for the company. With the help of this project, sale of the company has been increased. Because in this project there is one market developer who has to ensure that Visicooler must be on prime location, all brands must available, all brands must displayed in brand order i.e. COLOJK. All the activation elements like warm display

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rack, table top rack, standees etc must be available at all outlets come under RED. All these elements help the company in increasing the sales because “JO DIKHTA VO BIKTA HAI “ Definitely when sales increase then profits also increases. With the help of this project company has increased its sale in Amritsar region and also company can measure or check the performance of each retailers working all over the world with COCA COLA COMPANY.

8.3 FINDINGS

 76% outlet from the sample of 250 outlets which have sufficient activation elements but remaining 24% outlets are not fully activated. 86

 In our study it is revealed that 67% from the selected outlet follow the Brand Order COLOJ-K, but remaining 37%are not following the brand order.  69% of visited outlet, visi cooler are pure i.e. in visi cooler only the product of Coca cola are placed and 31% of outlets don’t keep visi cooler pure.  67% of visi cooler are at prime position where consumer can see our product and choose as per there need.  83% outlets are convenience store, 11% are under the E&D and remain under 6% are glossary shop.  41% of outlets are having 7vc, 41% of the total outlets having 9vc, 4% outlets have 11vc, and few outlets have 2vc and 20vc.
 54% market cover under the silver categories where as remaining 23%, 22%,

 1% are under diamond, gold, bronze respectively.  91% outlets don’t have a sufficient number GOD that they can create stock pile according to the visi coolers provided to them and 9% are those outlets which have sufficient number of GOD.

8.4 SUGGESTIONS:

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We must visit all RED outlets where the activation elements are missing and it

must be activated immediately.  We must visit all those outlets and arrange the product according to COLOJ-K

where are products are not placed in the visi cooler according to COLOJ-K.  All the MD needs to visit all the red outlets regularly to keep the visi cooler

pure.  Prime position of visi cooler enhances the visibility of the product which help

consumer to choose the product and some times it influences the customers to switch over from similar product.  We should try the increase sell of outlets so that maximum outlets convert into

upgrade class.  We need to put effort to increase the required number of GOD as per the visi

cooler size that they can keep 3day stock to meet the demand.

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8.5 RECOMMENDATION: We can sum the recommendations in brief as follows:  Aggressive Marketing  Regular visit to distributors  Sales promotion and advertising to be made more frequent for brand building.  Communications should be improved. Fulfill the Demand of product by company. In the field’s sales situation. Sales persons work independently and away from the office.  Good communication requires interaction between those preparing and those receiving reports. A good sales reporting system provides both for communication from the field to office and form office to the field.  Sales reports provide data for evaluating performance.  Company should make plans for better performance to the sales man.  Company should be implementing the customers’ suggestions and complaints about products, service policies, price changes, advertising companies etc.  Company should gather information of competitor’s activities. Transportation confers time utility and place utility to the product. It determines the company’s customer service; it has also crucial bearing on the other elements of physical distribution and marketing.

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8.7 LEARNING EXPERIENCE • • • • • • The first thing that I come to know is to work in the market i.e. the way of doing the things in the market. The second thing is that, to know about the RED execution. And also learn the impact of visicooler and activation on the sales. I also come to know the working of the Coca Cola Company i.e. how the company do their jobs successfully. I can also do some practical work at the outlets like to set the brand order in the visicooler, complete the activation element etc. I can also learn the working of MDs and sales person in the market. Also the relationships of the company with the outlet owners and customer are very good.

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8.8 REFERENCES www.agriculture-industry-india.com/agricultural-commodities/soft-drinks.html wiki.answer.com/q/what_are_product_life_cycle_of_coca_cola en.wikipedia.org/wiki/coca-cola www.coca-colaindia.com

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8.6 SCORE SHEET OF COCA COLA COMPANY

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