DECLARATION

I here by declare that this project report prepared in lieu of a compulsory

paper for the partial fulfilment of Bachelor of Business Management (HR

and Marketing) is my original work which I have submitted in Coca Cola to

my guide Mr. Mithlesh kumar . No part of it has been submitted to any

other university or organization.

All the information and data in my project are authentic to the best of my

knowledge and taken from reliable sources.

Sakshi Kumari

1
 ACKNOWLEDGEMENT

I owe my gratitude to many people who helped and supported me during

the entire summer training. I wish to express my appreciation to all those
with whom I worked or interacted during my project work and whose
thought and insights helped me in fathering my knowledge and
understanding on the topic “ Market survey of right execution for Coca-
Cola .”

I owe my gratitude to Mr. Mithlesh Kumar (Team Leader) for guiding me

throughout the project work. His relentless encouragement and invaluable
advice helped me immensely in accomplishing the objective of my project.

I express my deep sense of gratitude to the organization Hindustan Coca-

Cola Pvt Ltd.

I would also like to thank Mr .Steve Gunjan (HR Manager) to allow me to

carry out my project in his department.

I am highly indebted to Mr. Robin DE Cruz (Plant Manager) who allowed

me to carryout my training in the organization .I am also thankful to my
friends who helped me in this project.

2
THANKS TO ALL

3
 SYNOPSIS

Summer Training in any organization is an attempt to provide the student a

practical Input and Exposure to the Real world situation in which he has to
work in future.

My training in COCA-COLA was an attempt in this regard. The project work

provided to me was a survey titled based on R.E.D. it was to find out the
Effect of Merchandising and Route Assessment on Productivity/Sales,
Availability of product, MKT. Condition, Demand & supply of product,
Distribution Channel, Cooler display, warm display, across various outlets
under 7 distributors in Patna City.

The Extract of the work is presented in this report under various headings
as, Introduction, Company’s Profile, Project Introduction, Methodology,
Data analysis, Suggestions and Conclusions.

This report provides me a chance to study and analyze the practical aspects
of the topic (Market Survey of Right Execution for Coca Cola). It enhanced
my knowledge in the field of marketing. This project also gave me the
chance to improve logical thinking and interacting patterns.

While working on the project, we came to know about the latest

marketing strategies and trends prevailing in the market. The way of selling
and distribution network of Coca Cola was different.

4
 CONTENTS

Chapter 1- Introduction

1. Company Profile

Chapter 2- Research Methodology

Chapter 3- Organization Information

1. Market Survey of Right Execution Daily Pure Outlet

Chapter 4-Descriptive work of subtopics of study

2. Marketing Strategy of Coke

Chapter 5- Data Analysis and Interpretation

1. SWOT Analysis
2. Field Experience

Chapter 6- Conclusion, Suggestion and Limitation of Research

 Bibliography

5
 COMPANY PROFILE
History of Coca-Cola

On May 8, 1886, Atlanta druggist Dr. John smith Pemberton (former

confederate officer) Invented "coca cola" syrup, It was mixed in a 30 gal.

Brass kettle hung over a backyard fire. It was marketed as a "brain and

nerve tonic" in drugstores. Sales averaged nine drinks per day.

Frank M. Robinson, Pemberton's bookkeeper, was the person who

suggested the name "coca cola", which was chosen because both words

actually named two ingredients found in the syrup. Robinson also thought

that two "C's" Would look well in advertising. The first year's gross sales

were $ 50 and advertising costs were $ 73.96.

The original formula included extracts of the African kola nut and

coca leaves both strong stimulants. "Coca Cola" was one of thousands of

exotic patent medicines sold in the 1800s that actually contained traces of

cocaine. Coca-Cola was first sold for 5cent a glass as a soda fountain drink at

Jacob's Pharmacy in Atlanta Georgia.

In 1888, As Griggs Candler bought the company from Dr. Pemberton.

Later that same year, Dr. Pemberton died. By 1914, Candler had acquired a

6
fortune of some $50 million. Baseball hall of Famer TyCobb, a Georgia

native was another early investor in the company.

In 1894, Joseph A. Biedenharn owner of the Biedenharn Candy

Company in vicksvurg, Mississippi, first bottled "Coca Cola".

By 1903 the use of cocaine was controversial and "coca cola" decided

to use only "spent coca leaves" It also stopped advertising "coca cola" as a

cure for headaches and other ills.

In 1929 after his death Griggs Candler's family sold the interest in

'interest in "coca cola" to a group of businessmen led by Ernest woodruff

for $25 million. Woodruff was appointed president of "coca cola" on April

28, 1923 and stayed on the job until 1955. The name was extended to a

new U. S. soft drink, Minute Maid.

7
 .

Coke Brands in Indian Origin

COCA-COLA:

Developed in a brass pot in 1886, Coca-Cola is the most

recognized and admired trademark around the globe.

Not to mention the best selling soft drink in the world.

SPRITE: In 1961, a citrus-flavoured drink made its

U.S. debut, using "Sprite Boy" as inspiration for its

name. This elf with silver hair and a big smile was used

8
in 1940s advertising for Coca-Cola. Sprite is now the fastest growing major

soft drink in the U.S., and the world's most popular lemon-lime soft drink.

FANTA:

The name "Fanta" was first registered as a trademark in

Germany in 1941, when it was used for a few years for

a soft drink created from available materials and

flavours. The name was then revived in 1955 in Naples,

Italy, when it was used for the "Fanta" orange drink we know today. It is

now the trademark name for a line of flavored drinks sold around the

world.

DIET COKE :

The extension of the Coca-Cola name began in 1982

with the introduction of diet Coke (also called Coca-

Cola light in some countries). Diet coke quickly

became the number- one selling low-calorie soft drink in the world.

VANILA :

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It is an Ice Cream in taste. Launched in 2004.

LIMCA:

This is thirst-quenching beverage features a fresh and

light lemon-lime taste and a lighthearted attitude. The

Limca brand was introduced in 1971 and acquired by

the Coca-Cola Company in 1993.

MAAZA :

Mazza, launched in 1984 and acquired by The Coca-Cola

Company in 1993, is a non carbonated mango soft drink

with a rich, juicy m natural mango taste.

Thumps Up :

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 In 1993, The Coca-Cola Company acquired this brand, which was originally

introduced in 1977. Its strong and fizzy taste makes it unique carbonated Indian

Cola.

KINLEY WATER:

This is thirst-quenching beverage features fresh the

fresh water with the saturated oxygen level.

Vision
 The long-term vision of Coca-Cola in India is to provide exceptional

strategic lead to the Coca-Cola in India.

 Through Coca-Cola system resulting in consumer & customer

preference and loyalty through Coca-Cola is commitment to them

and in a highly profitable Coca-Cola Corporate branded beverage

system.

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Mission

The mission of coca cola in India is:

 Increase in shareholder's value over time.

 To achieve the above by working with business partners to deliver

satisfaction and value to customers and consumers through world

wide system of superior brand and services thus increasing the brand

equity.

 To achieve the mission the company seeks the contribution from

each of the given areas:

 People working in the company.

 Commitment of the company.

 Goals & objectives of the company.

 Environmental policy.

 Internal control.

12
 Policy and producers.

13
Hindustan Coca-Cola Beverages Pvt.

Ltd

In the network of the Coca-Cola system, Coca-Cola has either of the

two bottling operation done far the company.

1. COBO (Company Owned & Operated Bottling Operation).

2. FOBO (Franchise Owned & Operated Bottling Operation).

After 1993, when coca cola re enters Indian market, done a lot of changes in
the existing system of the soft drink market prevailing in India, by acquiring
the major brands and the bottling operations from Parle. After this
company founded some of it’s own bottling operation in India.

In year 1997, company did a major investment of $700 million in India by

purchasing other bottling operations, all around India and introduces new
technology in them. These bottling plants are called Company Owned and
Operation Bottling Operation. Company has full ownership and operational
right for these type of operations. The other type of bottling operation for
the company are called Franchise Owned and Operated bottling
Operation, to these, the company has given the right to produce the
product for the company and to supply with in the territory assigned by the
company. Company has no ownership or operational right/control over
these.

14
In India Company have 26 COBO and 14 FOBO operations for the
production and control of the whole operation in India. These are divided in
to various zones that are given in the marketing mix section of this report.

Hindustan Coca-Cola Beverages Pvt. Ltd. First established plant is

Haftaras in India, second largest plant is Desna, The largest one is in
Bangalore. Haftaras plant has 3 RGB filling lines. The RGB line operating at
mechanical efficiency of 90% . Company doesn't have the facility for filling
Mazza (RGB and Tetra Pack) a Mango flavor drink of Coca-Cola , pet
bottling ,water plant.

15
 Research Objective

Any project work to be carried out in any organization or in any fieldwork in

the market has certain per decided and specified objective, which is to be

attained. The whole survey or fieldwork is designed in accordance with that

objective .The whole survey is broken down in two various parts, which

individually contribute to that project's objective. The objective laid down

helps to solve the problems that exist in the organization. This problem

provides the foundation for the project and the projective.

The various things that are to be done in any survey, the various

components of the problem and the project objective provide the base for

deciding the scope of the project. The scope of the project varies from

project to project, the scope are the limit with in which the person carrying

out the project has to work. It provides the person various things that are to

be done. Under project it is basically the subdivision of the project

objective. The project provided me by the company is titled as :

16
"Market Survey of Right Execution for Coca Cola "

By R.E.D. survey, we mean that, other than doing the fresh marketing

activities, creating new consumer & customer, doing new promotion and

Adventuring is done in relation to the 4 P's of marketing that is Product,

Price, Place, Promotion. There exist some opportunity in the marketing

activity done by the company in the past. In R.E.D. rather than doing fresh

marketing activities gaps are found in the alerting system for product, place,

and promotion activities done by the company in the past and corrective

actions are taken accordingly .In R.E.D. survey While doing the trade in its

present manner, opportunities are found for tilling up the gaps in the

existing system, and efforts made in order to remove the deficiency by

doing the marketing activities.

 Effect of merchandising on sales.

 Merchandising as a sales promotion tool.

 Effect of route on productivity/sales.

 Comparison of different Brands.

 Contribution of different Brand in market.

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  Packed wise contribution.

 Brand wise contribution.

 To check the Display.

 To know the relation ship in Demand & Supply condition

 To improve in marketing mix

 To check the cooler purity in outlets and to remove impurity.

 To check the POS material display in different outlets across the

market.

The data collected includes both the major companies operating the

industry, Coca-Cola and PEPSI. Under the project work the data to be

collected through the Questionnaire was basically related to four things: -

Cooler Purity, Cooler Display, Warm & Outside Display, POS Display and

Product availability.

Cooler Purity & Cooler Display: Here cooler purity means whether the

products available in the cooler / fridge is of the same company to which

18
the fridge belongs or of any other company's product is also available. It is

measured in the (%) terms i.e. 0%, 50%, 75% and 100% purity. The other

thing includes display of the products on the top of the cooler, product

inside the cooler on top shelf, 2nd shelf and 3rd shelf.

Warm and Outside display: The warm displays represent the display of the

product in various packs and flavours inside the outlet, whereas the outside

display is the no of crates present outside the store. In the project the warm

display is considered according to the various flavors in which Coca-Cola

product is available. The COLA brands, non - cola brands, focus brand and

water display so considered for inside / warm display. For outline display

minimum no. of crates to be present is considered as 4. .

POS Display: For POS Display, POS material is material from the company

provided for advertising like glow signs, posters, dangles, banners, scheme

publicity material, calendars and others POS materials. he data collected

through the close ended Questionnaire about the venous heads explained

is answered as yes or no for various things weather it is there or not.

19
 RESEARCH METHODOLOGY

Operational Setup-

The success of any survey is depends upon resources, quality and timing

and integrity of the surveyor who compiles the primary data. So it is a very

important task is to manage all the available resources which make impact

on the quality of survey.

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Approach-

The approach behind a surveyor the project varies with the purpose of the

survey. Under this report, "quantitative" approach is used which is

concerned with the objective assessment of the availability and display that

is clearly visible and can be easily quantified. No subjective assessment is

involved in this report.

Place-

The survey was conducted at 50 retailer outlet in Patna city.

Area of survey-

Gardanibagh , Boring road , Anisabad , Phulwarisarif and Bypass.

Planning:

For a successful compilation and best result within a limited time the

planning was must. In this way the first step was to design an appropriate

data form we can say it questionnaire that covers all the mandatory areas of

information that is to be analyzed. The data form which I was used to

collect data was designed by me and my immediate supervisor.

21
Schedule:

To achieve the desired goal it was necessary to make schedule of tasks

which were handed over to us. So keeping in view the original objective, the

content of the schedule was prepared. Then I and my group members

collected data from the desired field. Since the data form distribution and

collection was an official work so it was a time taking process. In the

meantime it was our work to keep in touch with our fields.

Sampling Design :

Design is the plan, structure & strategy of investigation conceived so as to

attain answer to questions' to survey and to control the variances.

According to this project's / survey's purpose the analytical,

interpretive/objective design was chosen.

Data Collection Method :

The two sources for data collection are documentary or secondary and field

or primary is used. Because I have to collect the information, which is fickle

in nature, the availability and display of the product changes even each and

every day, therefore questionnaire is selected as the survey instrument. The

22
forms used for the survey were close-ended questionnaire consisting of

various items.

I have covered Patna city & took data of different it was great to visit

company like "Coca-Cola", season like "Summer" and product like "Cold

Drink", combining all the factors together make the sample design for the

project very important for the real extract from the market. According to

my judgment and to cover all the major areas the sample was selected.

Statistical Tools:

Representation of statistical data by diagram, graphs, charts or pictures is

more effective than tabular representation being easily intelligible to a

layman, indeed diagrams is most essential whenever it is required to convey

any statistical information to the general public.

The more important types of diagram which are use in statistical work are:-

1. Bar Diagram :Mode of diagrammatic representation of data is the

bar diagram. In this method bar of equal width are taken for the different

items of the series. The length of the bar represents value of the variables

concerned.

23
2. Pie Chart :

It is a circle whose area is divided proportionately among the different

components by straight lines drawn from the center to the circumference of

the circle. When statistical data are given for a number of categories and we

are interested in the comparison of various categories or between a part of

the whole, such a diagram is very helpful in effectively displaying the data.

Sample Size : 100

Type of Sampling : Random Sampling.

MERCHANDISING

1. The exchange of goods for an agreed sum of money

2. Engage in the trade of

Definition-A (Webster's) :

Merchandising-

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 N. 1. (Commerce) The activities associated with selling products, such

as identification of the market, advertising at the right time in the right

media and creating attractive packaging and displays; also, the study of the

best methods to accomplish such goals.

merchandising - the exchange of goods for an agreed sum of money

Synonyms: marketing, selling

Definition-B (Encyclopedia) :

Merchandising is a marketing practice in which the brand or image from

one product or service is used to sell another. It is most prominently seen in

connection with films, usually those in current release, and with television

shows oriented towards children.

Trademarked brand names, logos, or character images are licensed to

manufacturers of products such as toys or clothing, who then make items in

or emblazoned with the image of the license, hoping they'll sell better than

the same item with no such image.

25
MERCHANDISING STRATEGY (All Services) :

Assess your company's overall strategy to win customers, from point of

discovery to exploration, testing and validation. Make additional

recommendations on retail store efficiencies, cost savings, and overall

performance.

Assess strategic direction and financial plan of merchandising efforts. Work

to develop and implement retail partnering programs (and new product

lines), where applicable.

 Develop in-store events and vendor co-sponsorship programs.

 Create additional awareness and distribution channels through

strategic partnerships leveraging print, TV, radio, live events (tours,

festivals, etc.) and more.

 Where no retention program exists, work with management to

rapidly adopt a system to increase repeat purchases, build upon

average order size, lower related costs, and maximize customer

loyalty.

26
MERCHANDISING TYPES :

 Retail Merchandising

 Visual Merchandising

VISUAL MERCHANDISING :

Years ago, Visual Merchandising was referred to as Window Dressing

because a store's window was the main area where merchandise was

displayed. Today the Visual Merchandising team displays merchandise in:

27
ROUTE
PRODUCTIVITY
Many product distributors find themselves with a delivery route system that

has evolved" over the years into - well, let's just say a state of relative

inefficiency. When was the last time your distributor operation completed a

thorough, bottom-up review of its route system efficiency? When was the

last time the entire company was re-routed?

If the answer to these two questions is years, the business may have

considerable room for route efficiency improvement.

In a re-route of a product distributor's delivery system, it is commonly-

believed that sales routes need to be developed first - with delivery routes

developed later to support sales. The theory driving this approach is that to

be a "sales-driven" organization, one must develop sales routes first to

ensure the company is matching resources optimally to meet market

28
needs. This approach is unsound and likely results in a route system that

is: inefficient from an operations standpoint, and does not optimally meet

customer demands.

The delivery system is the most expensive component dealt with in an

entire company re-route. Therefore, from a strictly financial sense, it is

logical to begin the re-routing process with an optimization of this more

expensive component. Sales routes, merchandising routes, etc. can be

developed secondarily to match the optimized delivery routes.

Does a Focus on Delivery Optimization Compromise the "Sales-Driven"

Organization?

By definition, the re-routing of an entire distributor operation requires

balance and compromise. While at first glance, an initial focus on delivery

optimization may seem to be a contradictory objective to developing a true

"sales-focused" route system, the analysis is not so simple.

29
By ensuring maximum efficiency in the delivery route system, wholesalers

free up resources within the organization that can be re-directed into the

sales effort. A properly designed and executed re-route can be one of the

most important things a wholesaler can do to increase both its delivery

system productivity and efficiency measurements - and to provide financial

resources to focus on driving increased revenues in the business.

When was your last re-route? Is your business missing opportunities

because of route inefficiencies? How do you know if delivery routes, sales

routes, merchandising routes, are optimally-designed?

Delivery operations in a distributor operation primarily focuses on the task

of "getting the product to market". Delivery can mean different things to

different distributor environments, however. Some distributors view

delivery as just that - nothing more than driving the product from one

location to another. In other distributor environments, delivery drivers are

expected to provide additional services such as the construction of in-store

displays, the putting up of point-of-sale materials, product rotation, product

30
pull-up, and product facing. In some distributor operations, delivery drivers

are, in fact, referred to as Customer Service Representatives (CSRs) which

conveys the expectation that drivers will, in fact, provide additional services

viewed by the customer as having value beyond just the dropping of

product at the back door.

The type and level of services expected by the delivery department will, of

course, have direct impacts on issues such as the:

- type and quality of individual sought for delivery positions;

- methods used for compensating delivery driver positions;

- interaction of the delivery driver with other facets of the distributor

operation;

- productivity measurements expected and produced.

Delivery Productivity

Productivity in the delivery department can be measured in two major

ways. One method focuses on asset utilization. A typical measurement

providing information on asset utilization is to develop some type of

product movement ratio on a per-route basis. The most common product

31
movement ratios are:

- unit volume sold per year;

- annual revenues;

- annual gross profits.

For example, a business generating $10,000,000 in annual revenues utilizing

20 delivery routes has a ratio of $500,000 of revenues per route. In this

calculation, a single route is defined as one five-day per week full-time

equivalent. In other words, one route going out only 2 days a week is

considered to be only .4 of a full-time equivalent route [2/5].

MARKETING STRATEGY OF COKE

As millions of rural Indians reach for a cold soft drink in the hottest summer

in years, Coca-Cola India seems to have discovered the consumers who

could rescue its dismal sales record. Coca-Cola India totally misjudged rural

India, home to two-thirds of the country's 1 billion population, when it re-

entered the country a decade ago.

32
Yet as the country side emerges as the fastest-growing source of demand

for consumer products, the local arm of the US soft drinks giant seems to

have learnt its lesson. "We were just not addressing the masses, that were

the problem," says Mr. Sanjeev Gupta, Coca-Cola's operations chief.

The company's new strategy of smaller bottles, price cuts and advertising

that straddles cities and villages pushed turnover last year up by a quarter

to nearly Rs.5000 crore. And Thumbs Up, a local brand that Coca-Cola

bought and then ran down, is also recovering spectacularly. The success of

Thumbs Up, whose market share is now roughly equal to that of marker

leader Pepsi at 23 percent, is an embarrassment for Coca-Cola, which is in

third place with 16.5 percent (from 12 percent three years ago) in India's

Rs.8000 crore soft drinks market. Coca-Cola returned to India after being

kicked out by the government in the mid-1970s. It paid a high price for the

then market leader, Thumbs Up, and tried to kill it off in the mistaken belief

that this would pave the way for Coca-Cola's rise. Extravagance,

unoptimistic and naive reading of the market and mismanagement of its

new bottling assets led Coca-Cola to write down Rs.2000 crore of its Indian

assets in 2000. The greatest indignity is that India is one of the few markets

where Pepsi has outsmarted Coca-Cola.

33
"Coca-Cola came in blazing but mishandled itself and Thumbs Up. That

makes its recovery all the more remarkable." says Mr. C. Srinivasan,

chairman of business consultant AT Kearney India. Coca-Cola's Indian

management, now stable after recent flurry of departures, persuaded the

US parent to persist with India, and won $100 m to fix problems such as

poor distribution. Its Atlanta headquarters was won over because of India's

potential. India's per capita consumption of carbonated drinks is less than

hall the level in Pakistan and about 8 percent of China's. Mr. Gupta argued

that closing the gap would only come by chasing the rural consumer.

"We had to address the 75 percent (that lives in rural areas) and not just the

25 percent (in cities) and that meant using small-pack innovations," says Mr.

Gupta. "The only consumer goods companies that make it in India are those

that sell micro-sized products at low prices."

Coca-Cola's 200 ml bottle (down from 300 ml) sells for Rs.5, half the price of

a conventional sized bottle. To achieve a return on this "low margin, high

volume" strategy. Coca-Cola had to shrink its ballooning costs, while raising

output in a market growing at just 8-9 percent per year. Coca-Cola added 30

assembly lines, including five plants; cut costly staff; revamped transport;

34
shrunk bottles and made them lighter and packed in smaller crates to

increase a truck's carrying capacity; added distributors and expanded the

number of outlets in towns and villages by a fifth to about 1 m. Coca-Cola's

aim was to "lock in" retailers in villages of at least 1,000 people connected

to usable roads. One method was to help those with no savings or access to

formal credit to buy their costliest asset: a fridge. The company negotiated

big discounts from fridge producers, placing an order equivalent to two

months' output of the domestic fridge industry. Discounts were passed on

to the retailers, cutting the average purchase price by Rs.3,000 more than

three months' wages in a village.

Finally, Coca-Cola dumped a global advertising campaign that was irrelevant

to the Indian market and adopted one featuring Bollywood stars. "The

campaign is finally speaking to the right market." says marketing consultant

Mr. Alok Jain. The adverts also loudly proclaimed the Rs.5 price benchmark,

meaning retailers could not overcharge.

The re-localization of Coca-Cola :

A glance at the 1999 Annual Report of The Coca-Cola Company leaves you

with a strong impression of two words that seem to be very deeply-etched

35
in every statement made by the company - 'Consumer* and 'Localization'.

The Chairman Douglas Daft states in his address to shareholders that, " If

there's one thing that I've learned in my 30 years at Coca Cola it is - Think

locally and act locally." Coca -Cola's localization drive appears to be partly

spurred by the adverse impact on the image of the company, due to the

various issues that cropped up last year in different parts of the world. Like

the product contamination in Belgium and France, the problems with

regulators in Europe, the racial discrimination lawsuit in United States.

In a recent article in The Financial Times, Mr. Daft talks of how Coca-Cola

whose basic success emanated from its strength of being a 'multi-local'

business relying heavily on the insight of local business partners, quite

forgot the secret of its success and veered on the path of centralization. He

has staled in this article that Coca-Cola wandered off the right path and

endured a year of dramatic setback, by ignoring the changing global

scenario and continuing to believe that a strategy that was once successful

will always yield results. As he puts it "As the Century was drawing to a

close, the world had changed, and we had not. The world was demanding

greater flexibility, responsiveness and local sensitivity, while we were

36
further centralizing decision making, standardizing practices and were

moving away from our traditional 'multi-local' approach".

The company in the 80's and 90's had focused on centralizing its operations

for enabling effective management of a vast global enterprise that was

being spread over 200 countries. It has now woken up to the fact that the

world is changing very fast today and that a localized management that can

quickly respond to the challenges and needs of the relevant market will be

critical to success, rather than a unified management at the center. And that

is precisely what Coca-Cola has set out to do. It appears to be handing out a

greater degree of freedom and responsibility to the frontline managers in

their respective areas of operations. It has decided to cut jobs and convert

itself into a leaner structure. In India too, the complex holding structure has

been broken down and converted into a simplified structure. A single

holding company Hindustan Coca-Cola Holdings Pvt. Ltd and one

downstream subsidiary - Hindustan Coca-Cola Beverages - formed by the

merger of 4 bottling subsidiaries of Coca Cola and that of Schweppes now

operate in India. The parent has performed a comprehensive review of its

Indian bottling operations and has announced that it will be writing off

$400mn worth of assets in India in the first quarter of this year.

37
The meeting hosted last week by the company to update investors on its

business strategies and outlook for the future also sang the same tune of

how members of the global Coca-Cola management team are implementing

their "Think Local Act Local" philosophy. The company's focus, according to

the management, will be to encourage higher consumption of non alcoholic

beverages and the Coca-Cola brands in every country. This will be achieved

through an intense focus on consumers, communities, customers, the Coca-

Cola system and Coca-Cola people. The Consumer focus strategy involves

using innovative and tailored marketing programs based on local consumer

insights to enable the company to keep growing. "We want to ensure that

we have a tailored nonalcoholic beverage portfolio in every community that

touches consumers in locally relevant ways." states the annual Report of the

company. It gives the example of the company's innovative marketing

strategy in India, which leveraged on the Diwali Festival and the entrenched

family values in the Indian society to connect to the Indian consumer at a

personal level. In Mr. Daft's words "The 21st Century has taught us one

important powerful lesson - that the next big evolutionary step in going

global has to be going local".

38
 Marketing Mix and Strategy:

Marketing mix of any organization consists of 4 P's i.e. product, price,

place and promotion having its own significance, which varies from one

organization to the other. In Coca-Cola the information about all the 4 P's

that can be available to me is given here:

Product:-

Product mix of Coca-Cola consists of the various brand packs and

flavors given in the table. Product strategy of the Coca-Cola is to promote all

the brands available in all the brands packs and to introduce the product in

new flavors and. even new product. Regarding this Kinley soda is

introduced. Fanta in green apple flavor is also introduced.

PRICE:

Regarding the pricing policy or the price to the distributor is not

disclosed to me, but as done for the different product of the company,

company has priced the product same as that of its major competitor or the

market leader.

39
PLACE:

The Coca-Cola Company in India is governed from its corporate office

located at Ghaziabad. It governs the working of five zones covering whole

India these zones are: - Northern zone, Eastern zone, Western zone,

Southern zone and Andhra Pradesh zone. These zones are divided in to

various, plants, which govern the area assigned to them. The areas are the

various distribution centers called distributors and C&F agents. Then comes

the retailers/customer for the company's product, they receive goods from

distributors and C&F agents. Finally consumer is there, having the product

from the customer's shops or delivered to their home, it is more clearly

visible through this chart. The Coca-Cola Company, which gave its reach to

the mouth of billions of people all around the world having a wide

distribution, network. In India, the pace and speed at which Coca-Cola has

widened its business is really amazing. Distribution network is the biggest

strength of the company.

Promotion:

This part of the marketing is playing a very vital and important role in

the current situation in India. Looking at the competition and promotion

40
and advertising budget of both the companies coca cola and Pepsi, one can

easily estimate the importance of this. The promotion mix of Coca-Cola is

divided in to Top line promotion and below the line promotion.

Top line promotion includes the promotion designed and done by

the company's corporate office of Gurgaon and the office of Bombay TV

ads, design of banners, and other POS done by the company simultaneously

all around India with no Difference in designs etc. fall in this category.

Below the line promotion includes the promotion schemes, publicity

material, POS display done by the company from zonal, plant, sales

manager and area sales manager level. . At the sales manager and area

sales manager level the promotion done exclusively for the cities in their

respective area and other POS display.

COMPETITORS :

Since there is only one major competitor of the Coca – Cola i.e.

Pepsi. There is some information about the Pepsi Company.

Pepsi Cola, Headquartered N.Y., is the refreshment beverage unit of

Pepsi Co. Beverages and Foods, a division of Pepsi Co. Inc. Pepsi Co.

41
Beverages and Foods at North America also comprise Pepsi Co`s Tropicana,

Gatorade and Quaker Foods businesses in the United States of America and

Canada also.

Pepsi-Cola non-carbonated beverage portfolio includes Aquafina,

Which is the number one brand of bottled water in the United States, Dole

single serve juices and some, which offers a wide range of drinks with

herbal ingredients. The company also makes and markets North America’s

best-selling, ready to drink iced teas and coffees via joint venture with

Lipton and Starbucks, respectively.

Pepsi Co, Inc. is one of the world’s largest food and beverage

companies.

The company’s principle business includes:

 Frito-Lay snacks

 Pepsi-Cola beverages

 Gatorade sports drinks

 Tropicana juices

 Quaker Foods

42
 Pepsi Co Inc. was founded in 1965 through the merger of Pepsi-Cola and

Frito-Lay. Tropicana was acquired in 1998. In 21001 Pepsi Co merged with

the QUAKER Oats Company, creating the world’s fifth largest food and

Beverage Company, with 15 brands-each generating more than $1million in

annual retail sales. Pepsi Co's success is the result of superior products, high

standards of performance, distinctive competitive strategies and the high

level of integrity of their people.

Soft drink business is built on two pillars - Brands and Distribution.

We present below comprehensive conceptual coverage of these and other

key marketing concepts

1. Branding

2. Valuation of brands

3. Distribution

4. Marketing

5. Market Research

6. Market segmentation and positioning

43
7. Advertising and promotions

1. BRANDING :

What is a brand ?

A brand is name, term, sign, symbol or design or a combination of

them which is intended to identify the goods or services of one seller or

group of sellers and to differentiate them from those of competitors'

A Trade mark is "a brand or a part of brand that is given legal

protection because it is capable of exclusive appropriation."

Manufacturers can use their own brands (known as Manufacturers'

brands) or brands of their distributors (Distributors' brands).

Why branding?

Manufacturers/ distributors use brand names for a variety of reasons

from simple identification purposes to having legal protection for unique

features of the products from imitations and help consumers recognize

certain quality parameters. In some cases, brands are just used to endow

44
the product with unique story and character which itself can be a basis for

product differentiation.

Special importance of brands for soft drink products

While brands can represent all types of goods or entities, they have

special importance for products. Brand equities are stronger in soft drink

products as the consumer is reluctant to try unknown brands/ unbranded

products for the following reasons

 These products individually account for a small part of household

spending.

 Most of these products are for personal use.

 In many cases, it is difficult to differentiate a product on technical or

functional grounds and therefore the consumer is reluctant to

switch to an unknown brand.

 Successful brands generate strong cash flows, which enable the

owner of the brand to reinvest a part of it in the form of aggressive

advertisements/ promotions. This reinforces the perceived superiority

of a brand.

45
How a brand is created?

Soft drink companies spends enormous sums on building a brand

equity by way of

- advertisements/publicity

- free samples -low entry price

- promotions (schemes for dealers, consumers etc)

Advertisement and promotion can induce trials but for sustained

loyalty, the manufacturer has to offer superior quality and value for money.

Most successful brands are founded on a chance discovery of a new

product/ process or assiduous research and development work. Major

players invest in R&D on their existing brands and improve the product

quality continuously to maintain their edge over competitors.

Branding strategies :

a) Individual brands Vs Umbrella brands-

Individual brand has its own identity and the corporate or common

name is not used to promote its equity. In case umbrella brand, there is a

46
generic brand with association of some values. For instance, Hindustan

Lever follows individual branding strategy and has several brands in the

same category such as Lux, Liril, Rexona soaps etc. Competitor Nirma has

mainly followed the umbrella branding strategy such as Nirma Bath, Nirma

Beauty, Nirma Super, Nirma Shikakai soap etc. Only recently, the company

for the first time diverted from its strategy of umbrella branding with the

launch of Nima.

Advantages of Individual branding strategy are

 Some of the products which flop in the market do not have negative

spill over impact on other brands. For example, Nirma is associated

with popular end of products, which becomes a major deterrent for its

expansion in the premium segment.

 Consumers looking for a change are offered distinctly new brands by

the same manufacturer.

But individual branding requires expensive advertisements and brand

building exercises. Also, each new brand does not benefit from the positive

perceptions of earlier brands.

47
In umbrella branding, manufacturers have advantage of

 Establishing a new product quickly with association of quality/

benefits of the mother brand, (a classic case in Indian context has been

Godrej)

 No need for name research, expensive advertisement for creating

brand names, recognition and preference.

b) Brand extensions-

Brand extensions are used for a group of products such as Clinic Plus

Shampoo, Clinic All Clear, Clinic Plus hair oil or Close Up Renew, dose Up

Oxyfresh, Close Up Sensation, etc. The brand has some unique USP and

there are cosmetic/ functional variations in the extensions. The strategy is

to build upon initial success of a brand entry by creating flanker items and

minor variants of the basic brand. Brand extensions may be used within

product categories (In some products like shampoos, there can be natural

variants such as shampoo for normal hair, dry hair or for specific problem

solving like anti-dandruff). It may also be used for different product

segments (e.g. Suns ilk brand being extended to hair oil)

48
c) Multi brands-

Marketer introduces brands mostly in large markets, which compete

with each other in almost the same segment. In multi branding, there is

cannibalization but overall result is greater market share. Net incremental

market share is enough to justify the investment in the new brand. For

instance Hindustan Lever has several brands (Lux, Breeze, Hamam, Rexona,

etc) in the same category i.e. toilet soaps.

Accounting for brand expenses :

Expenses incurred by way of advertisements, free samples,

promotions etc are treated as revenue expenditure by accountants, as they

do not create any tangible assets. The intangible assets created in the form

of a brand pays back in the form of repeat buying and pricing power over a

long period of time. An established brand is a precious asset and when sold,

fetches a price several times the value of tangible assets required to

manufacture the product.

49
 There is no generally accepted methodology for valuing and

accounting for brands. Also, all methods recommended for valuing brands

suffer from lack of objectivity and consistency. There is considerable risk as

expenses incurred on a unsuccessful brand has to be written off almost

entirely. But the same are paid back several times in case of successful

brands. In case of FMCG companies, assets are considerably understated as

they do not include value of brands. Inclusion of brands in assets will

- dilute return on net worth

- reduce gearing ratio.

It can be argued that high return on net worth shown by established

companies is overstated as assets (i.e. Brands) are understated. Similarly, in

case of companies in investment phase, making extensive investment in

new brands, would exhibit depressed return on net worth as investment in

brands is being written off, pulling down the profits.

Some companies defer writing off a part of the expenditure for brand

building. The expenditure not written off in the year is treated as deferred

revenue expenditure.

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2. VALUATION OF BRANDS :

Value of a brand is represented by the incremental cash flow

resulting from a product with a brand versus a product without a brand

name or with weaker brand name.

Brand valuation is a complex process and involves a lot of subjectivity.

There are no widely accepted techniques of brand valuation. There are

several considerations which cannot be standardized or quantified such as

 To pre-empt competition from taking over a brand

 • Synergy with the company acquiring existing brands/ businesses

 • Strategic entry into a new product category

 Prevent damage to existing brands. Many a times stiff competition

results in price cutting, aggressive promotions, lower margins for all

the competing brands.

 Confidence in the acquirer of the brand to rejuvenate a languishing

brand.

Value of an acquired brand :

51
 In case of an acquired brand, price paid for the brand over and above

the value of tangible assets, represents value of the brand. For accounting

purposes consideration paid for the brand is typically broken up as follows:

 Goodwill

 Trademark and patents

 Technology and know-how

 Non compete agreement

Some of the popular methods for valuation of brands are discussed

below

Bert technique (Intra-brand Pic) values brands based on following

factors. It gives scores on each factor and values the brand as multiple of

sales/ earnings based on the aggregate score.

- USP's of the brand

- Stability of the brand

- Markets namely the industry in which the brand is in use.

- International of the brand commanding a higher weightage than a

local brand.

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 - The long term trends of the brands

- Brands receiving consistent investment are more valuable.

- Legal protection commanded by brands through registration and

trade mark laws.

- Quality of support received by the brands.

Cost basis - The valuation is done by aggregating all costs incurred on

a brand from the conception stage. These costs include market survey,

research & development, launch and subsequent advertising expenditures.

These costs are adjusted for inflation and present values are calculated.

Then adjustments are made to provide for discount in case of a declining

trend in the product life cycle or premium in case of ascending trend in

market share and product life cycle.

Market value - Valuation at market price (the best bidder quote) can

be at divergence from the fundamental value of the brand. For instance, a

large company may pay an abnormally high price to protect its major brand

or remove a nuisance from the market or derive synergies in its existing

business. Such valuations are subjective.

53
 Earnings model - In this method, valuation is done by identifying,

separating and quantifying earnings that can be attributed to the brand and

capitalizing these earnings at a suitable discounting rate. The multiple

would depend on several factors such as category growth prospect,

emerging competition and brand's relative position, edge in terms of

technology, strength of loyalty to the brand etc.

3. DISTRIBUTION :

Marketing or Distribution channel refers to the set of marketing

intermediaries which manufacturer's link together to reach their products

to the ultimate consumers. Depending on the product, nature of market

and manufacturers' resources/strategy, there can be one or more links

between the manufacturer and consumer.

Manufacturer – Retailers

Manufacturer - Wholesalers – Retailers

Manufacturer - Stockists - Wholesalers - Retailers.

Why use distribution channels-

54
 There are several benefits for a manufacturer particularly in case of

consumer goods to rely on these marketing intermediaries rather than

develop one's own distribution network.

 Efficiency in performing the basic marketing task by these

intermediaries who through their experience, specialization,

knowledge of local conditions, contacts and scale, offer services.

 Which manufacturers can scarcely do on their own.

 Cost advantage most of these intermediaries in India are family

owned outfits. Their cost of operations and overheads are substantially

lower.

 Focus: Manufacturers can concentrate on their core activity and

optimize return on assets.

Retailing :

In India, there are over 5 million retail outlets dispersed all over the

country. The retailing industry provides employment to over 18mn people.

1 out of every 25 families in India is engaged in the business of retailing.

Ownership and management are predominantly family controlled. However

55
in sharp contrast to developed countries, unit average size of a retail outlet

in India is very small.

Organized retailing, however, has been a recent phenomenon and is

relatively undeveloped. There are no large super market chains/ shopping

malls. Consumers are unwilling to pay a premium for convenience shopping

as their counterparts in the western countries do. While small chain stores

called Apna Bazaars and Sahakan Bhandaars, which offer products at

reasonable prices, have been fairly popular, Department Stores and Food

Stores are slowly gaining popularity. A large number of corporates have

recently ventured into retailing.

The retail outlet in India can be broadly categorized as follows:

- Grocery stores

- General purpose stores

- Food stores

- Pan bidi shops

- Chemist/ drug stores

- Cold chains

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 The relative share of grocers dropped from over 50% in the early 90's

to 35% in the late 90's. Chemist outlets on the other hand, have been

expanding their product range to include high margin FMCG products from

shampoos to ketchup. Pan-wallas are also emerging as full fledged

consumer product outlets.

Table : Growth in retail outlets

Year Urban Rural Total

1978 0.58 1.76 2.35
1984 0.75 2.02 2.77
1990 0.94 2.42 3.36
1996 1.80 3.33 5.13

Composition of urban outlets

Grocers 34.7%
Cosmetic stores 4.0%
Chemist 6.3%
Food Stores 6.6%
General Stores 14.4%
Pan – stores 17.0%
Others 17.0%

COMPOSITION OF RURAL OUTLETS

Grocers 55.6%

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Cosmetic stores 13.5%
Chemist 3.3%
Others 27.6%

04. MARKETING :

Direct marketing :

In direct marketing manufacturers reach the consumers directly.

Direct marketing can be undertaken in several ways such as mail order, own

retail outlets, mobile vans etc. A new innovative approach to direct

marketing viz multilevel marketing is becoming increasingly popular. Also

gaining ground slowly is E-tailing i.e. selling products through the internet.

Multilevel marketing model :

Multi level marketing refers to direct marketing through an ever-

increasing number of direct distributors. Independent distributors sell

products directly to the consumers and appoint new distributors and train

them. The distributor earns commission at two levels; one is his/ her own

commission and two a proportion of commission earned by other

58
distributors appointed by him/ her. None of these distributors are

employees of the company.

Distributors are not allowed to sell these products to retailers. The

company saves about 25% of realizations by eliminating retail channel,

which is shared with distributors.

The company insists that the distributors should take prior

appointment with the consumer. Personal interaction is not only convenient

but adds value as customer get valuable advice on the product and how to

use it.

This helps in creating awareness and removing misconceptions like

cosmetics are harmful for the skin.

Direct marketing (multi level approach) in persona care products is

extremely popular abroad. In Brazil, about 60% of personal care products

are sold through direct marketing. In India, direct marketing has been

slowly growing. Word of mouth has a strong impact on purchase decision of

a consumer, specially in personal care and cosmetic products. Direct

marketing has mainly been undertaken by the new MNC entrants (notably

59
Oriflame, Avon). Hindustan Lever has also recently launched a new personal

product brand Aviance which is sold directly to consumers exclusively by

trained beauty specialists. Direct marketing has also been extensively used

in marketing of household appliances like Vacuum cleaners. However given

the widely spread geographical area in India, direct marketing cannot be

easily used to build an extensive national reach and is more likely to be

used as a supplementary channel.

5. Market Research :

Market research activities encompass studies on:

- market characteristics

- measurement of market potential and size,

- market share analysis,

- competitive products,

- new products acceptance/ product preference,

- sales (region wise, consumer wise etc) analysis,

- short/ long term sales forecasting,

- advertisement effectiveness

- post-shipment data (actual shipment by manufacturers),

60
 - retail stores audit (actual sales at sample outlets)

- trade feedback and distribution,

- brand recall, point of sale material etc.

It requires skilled people for data collection as well as analysis.

Several large consumer companies have in-house MR department. Most

others retain specialized and professional MR agencies.

The significance of market research has increased considerably in the

recent times as:

- Size of operations of major players has increased to national and

international markets.

- Marketing executives are physically away from the market and hence

the need for flow of information.

- In the environment of increasing competition and multiple products

competing for consumers' preference information about the market

has tremendous utility.

- Information is required for segmenting the market and appropriate

pricing and positioning of the products.

61
Market research approach :

Typically, a market research activity involves the following 5 steps,

Problems definition This forms the basis of research and failure to

identify the problem precisely will result in finding a correct solution for a

wrong problem.

Research design: The next step is to set out objectives of research

clearly, determined data collection methods to finalize research instruments

and sampling plan.

Field work: After finalization of research design, the actual data

collection begins. It can be done by the agency on its own or through

subcontracting to third parties. Data is collected by questionnaires/ direct

interviews, telephonic interviews, simple observation etc.

Data analysis: The next step forms the heart of research activity. It

involves extracting meaningful information from the data collected and

analyzing the information statistically and also from business perspective.

Statistical techniques include simple/ multiple linear programming models,

62
time series, exponential series, regression analysis, simulation, Marko chain

process etc.

Report preparation: The final step is to prepare a report, present

major findings in a manner amenable to managerial decision taking. There

may be some follow up and revalidation required.

Test marketing :

Test marketing refers to testing out product and marketing mix with a

small number of well chosen consumers which are representative of the

target segment. Test marketing is frequently used by consumer companies,

in contrast to industrial companies which prefer feedback through informal

channels. Test marketing improves knowledge of target consumers,

potential sales and is an effective tool to pre-test alternative marketing

plan. In most products, it is important to check trial rates as well as re-

purchase rates.

Consumer's panels :

Consumer panels refer to a set of consumers with different

demographic characteristics (so as to be representative of target

63
population) who agree to co-operate in market research, typically for a

consideration. Market research agencies and companies try to collect

information on buyer's characteristics by introducing a new product to the

consumer panels. The firm estimates trials as well as the repeat purchasing

by this method. There are statistical models to forecast market shares,

demand, brand switching etc.

7. ADVERTISING AND PROMOTION :

Advertising consists of non-personal form of communications. The

communication is conducted through trade media under player

sponsorships. Advertising aims at providing information about the product

arouse demand for the product and emphasize on superior features of the

advertised product over others. Players have to decide on overall

advertisement budget, message and mode of presentation, type of media,

timing etc. They invariably do post audit of advertising efficacy.

Promotions are of two types viz. pull promotions where consumers

are incentives and push promotion where dealers/ retailers are incentives.

There are several forms of promotion such as distributing free samples,

discount coupons, gift offers for consumers and target based incentives and

64
display schemes etc for retailers. Marketers also sponsor charity

programmes, sports etc to promote corporate/ brand image.

DISTRIBUTION MANAGEMENT

Distribution management is a logistics control process that applies

situational understanding from both the operational and logistical common

operating pictures in order to dynamically control and synchronize the flow

of materiel through the distribution pipelines, including retrograde and

lateral distribution. The last part of the definition - retrograde and lateral

distribution - is critical to future success and is often overlooked in

distribution management schemes. Our ability to move materiel in any

direction through the pipelines provides an economy of effort that actually

becomes a force multiplier. In this manner, distribution management

becomes a key enabler of logistics transformation, by reducing materiel

requirements to only those that are needed and by leveraging stockage

positioning to reduce the total cost of sustainment.

Distribution Management: - When you're operating multiple plants

over a large geographical area, knowing exactly what you have and where

it's located can be a tremendous competitive advantage. Frontier's

65
Distribution Management components allow you to access real-time

inventory and shipping information across your enterprise, as well as

historical audits that can help with planning for the future.

With Frontier, you'll always know your inventory requirements and

availability for every product, at every plant. You can instantly find transit

status for parts and finished goods. Frontier helps you plan more efficient

truck loading and shipping routes. You'll also enjoy shipping and billing that

is tightly integrated from the initial sale through Accounts.

A definition of dynamic control is also required before we go further.

Dynamic control is the distribution manager's ability to rapidly set and

change priorities and modes of transportation in response to the war

fighter's requirements. If Quartermasters cannot dynamically control the

delivery of supplies and materiel, we remain at the mercy of the

transportation system and will be forced into the comfort and expense of a

stockage-based supply system.

DISTRIBUTION MANAGEMENT PRODUCT

MODULES

66
 Advanced Forecasting

Advanced Pricing

Advanced Stock Valuation

Agreement Management

Bulk Stock Valuation

Enterprise Facility

Planning Inventory Management.

INDIA DIVISION

The Head quarter of India is at Enkay Towers, Udyog Vihar,Gurgaon .Coca

Cola became 3rd largest FMCG from zero in India in just 8 years. There are

40 producing units across the country.

There are 5 regions in India viz., North, South, West, East & Andhra

Pradesh.

The company operates in two types of Bottling operations viz.,

67
1. COBO (Company Owned Bottling Operations) - In COBO, the

Company owns the unit and is a property of India.

2. FOBO (Franchisee owned Bottling Operations) - FOBO is operated by

Bottlers, who are given license by the Company to bottle its products

on their behalf.

THE NORTH REGION :

The headquarter of Northern Region is at JMD Towers, Regent

Square, Gurgaon. It comprises of Delhi, Western UP, Eastern UP, Jammu &

Jaipur units. It has 9 production units viz, Delhi, Jaipur, Kanpur, Ghaziabad,

Dasna, Najibabad, Jammu, Delhi FOBOs & East-West UP FOBO. It is the

largest region in India with 1313 employees.

PRODUCTS OF COMPANY

68
 It has brown colour with high content of C02 (Carbon di-oxide) which

makes its COLA flavour heavy. It is available in different volumes in market

like :

1. 200 ml glass bottle

2. 300 ml glass bottle

3. 500 ml pet bottle

4. 600ml pet bottle

5. 750ml pet bottle

6. 1 Liter glass bottle

7. 2.25 Liter pet bottle.

It has dark brown color with very high content of CO2 which makes

the Cola flavor is very strong. It is available in different volumes in market

like:

1. 200 ml glass bottle

2. 300 ml glass bottle

3. 500 ml pet bottle

4. 600ml pet bottle

5. 750ml pet bottle

69
6. 1 Liter glass bottle

7. 2.25 Liter pet bottle

It comes in many flavors like orange, with light content of CO2 that

makes its make its flavor delicious. It is available in different volumes in

market.

1. 200 ml glass bottle

2. 300 ml glass bottle

3. 500 ml pet bottle

4. 600 ml pet bottle

5. 750ml pet bottle

6. 1 Liter glass bottle

7. 2.25 Liter pet bottle

Limca has light grey colour with light content of CO2 that makes its

flavour tasty. It is available in market in following packs of quantities:

1. 200 ml glass bottle

2. 300 ml glass bottle

3. 500 ml pet bottle

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4. 600 ml pet bottle

5. 750ml pet bottle

6. 1 Liter glass bottle

7. 2.25 Liter pet bottle

It is colourless with packing in green coloured bottle. It has normal

content of CO2. It has a nice flavour available in market in following

packing:

1. 200 ml glass bottle

2. 300 ml glass bottle

3. 500 ml pet bottle

4. 600 ml pet bottle

5. 750ml pet bottle

6. 1 Liter glass bottle

7. 2.25 Liter pet bottle

It is of yellow colour with decent taste of mango. It doesn't contain

CO2. Its available packing in market are:

1. 250 glass Bottle

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2. 200 ml Tetrapack

It is a newly launched brand of Coca Cola

It is actually a Minute Made powder, which is very easy to prepare by

mixing water in it. It is available in three flavours viz., mango, lemon &

orange and its packing in the market are:

1. 25gm packet

2. 200 gm packet

Soda- It is colourless & available in market in 300 ml glass bottle in

the market.

K -Water it is a mineral water available in following volumes in the

market:

1. 500 ml pet bottle

2. 1 liter, pet little

3. 2 liter, pet little

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DEPARTMENTATION IN Hindustan Coca Cola Beverages

Pvt. Ltd.

The Patna Unit is divided into many departments for their smooth

working. The Plant is basically COBO for 200 ml, 300 ml & 1 Liter packing

and rest of the products are sourcing from other its COBO & FOBO unit. All

the departments and their workings are briefly described as follows:

FINANCE :

Finance department performs the activities in management of

Accounts Receivables, Claims and expenses, Fixed Assets management &

their depreciation, Transportation, arrangement of raw material as through

supply chain, computer networking management, Taxation, etc. Above all

these functions checking authority verifies all these activities and approves

it for final actions.

HUMAN RESOURCE (HR) –

HR department works in Recruitment & selection, Training &

Development, Performance Appraisals, objective setting leading to

73
management Incentive plan, wages & salary administration, Disciplinary

Actions, Statutory compliance, ISO documentation, assisting in civil &

criminal litigation, handling of contract labour and worker related issues,

employee welfare, community development projects, policy

implementation, internal & external environment etc.

PRODUCTION –

The manufacturing of different types of Brands of soft drink comes

under the Production department. It comprises the process of Water

Treatment, Syrup preparation, Container Washing, Mixing & Proportioning,

Filling & Crowning and then the Final Inspection of the product.

SHIPPING –

This department is also termed as Dispatch Section. Goods are

received and dispatched from shipping. It works in receiving of products

from other unit, transferring of fulls from production, Inventory

Management of finished products in First In First Out (FIFO) method,

dispatch of finished goods to distributors, empty received and dispatch to

other units.

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SALES & MARKETING –

Sales department takes care of placement of all brands in right

proportion in right time at right place. Sales executive always dispatches in

proportion of empty receiving and payment terms. The main aim of this

department is that all the brands should be at distributor's end and must

not be any deficiency of any brand.

All the activities that help in enhancing the sales come under

marketing. In this, company gives glow sign boards to distributors, Table,

chairs & Umbrellas, advertisements, T-shirts, Caps, posters, banners,

seasonal schemes, product keeping containers like Fridge, ice-box etc.

STORES –

All kinds of material are handled in stores either it can be of raw

material for production or materials used in the office. A proper sequence is

followed. At very first, Purchase requisition is prepared by each department

and then materials are purchased form the fixed vendors after this the

material are distributed as per the requirement.

75
In broader terms, we can say that the activities performed in this process

are receiving of materials, issuing of materials, rejection handling, scrap

handling.

QUALITY ASSURANCE (QA) –

QA department ensures the total quality in each and every aspect of

the organization. This quality is not only concerned with individual

department like production of goods but it is concerned with every

functioning of the organization such as hygiene in the organization like

providing the nutrious food from the canteen, cleanliness in the bathrooms,

not polluting the environment, etc. One of the major functions of QA

department is pre and post manufacturing tests which ensures zero defect

so that consumers can get right quantity and quality of products. All the

procured materials have to undergo a rigorous quality check. Even before

procurement the quality of the material has been ensured by the sample

check of material.

OBJECTIVES -

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1. Total Cost - The first and foremost objective is to bring down overall

cost. The costs involved in Logistics Operations:-

a. Transportation of supplies to the plant and distribution of

finished goods through distribution system.

b. Processing customer orders.

c. Packaging.

d. Providing customer services.

e. Maintaining warehouses.

These functions are directly not responsible for sales. But they do

support the sales activities. So, the total cost approach refers to evaluation

of all logistics cost expanded for any given sales revenue. By using the cost

approach the manager would try to maintain total logistics cost as

compared to the historical performance of the firm and in comparison with

other firms of the same industry.

2. Sub-Optimization - It is a term applied to a situation in which one

department's objective or function is optimized without considering

the affect of action on other departments. The goal of logistics is to

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 manage the system to provide designated levels of manufacturing

supply service at the least possible cost.

3. Cost Trade-off- This occur when a change in destination system

causes some costs to increase and other cost to decrease.

4. Customer Service - Elements of Customer Service are :-

a. On time delivery.

b. Proper handling of merchandise.

c. Quantity assembled should be according ti invoice.

d. On time service which includes after sales service, etc.

TRANSPORTATION LOGISTICS –

The distribution function has to perform two functions: it has to

generate demand for the product and secondly, it has to make sure that

demand thus created is matched by adequate and time supply. While all the

members of the channel will have to take part in dual functions, the

transporter has primary responsibility. A logistics plan can be drawn by

considering the following points:

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1. What are the alternative modes of transport, viz., road, rail, air, etc.

available for transporting the goods from the point of manufacture to

the point of purchase?

2. What is the mode which is optimal from the standpoint of total

distribution cost?

3. Is there any need for warehousing arrangements, keeping in view the

product and marketing characteristics'?

In fact, the first two points are important enough to be considered

even at the time of selection of markets. The non-availability of required

type of transportation facility can outweigh all other marketing advantages

that a company may have. The perishable nature of product demands that

must reach the consumers within the shortest possible time.

Therefore, unless the potential markets are served, delivery of such

items cannot be undertaken.

To consider the second aspect, namely, selection of the appropriate

mode of transport, it is necessary first to identify the elements that taken

together constitute the total distribution costs. In a study carried out in the

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US it is found that the total distribution costs are allocated over the various

components in the following proportion:

Administration 11.0%

Transportation 29.4%

Receiving and Shipping 7.8%

Packaging 11.9%

Warehousing 17.0%

Inventory carrying costs 17.04%

Order processing 5.5%

The proportion obviously will vary form product to product, but all

the cost components, with the sole exception of warehousing, will have to

be considered for determining the total distribution costs of each and every

product. It is, therefore, obvious that the selection of the mode cannot be

taken only on the basis of the freight element, which at best will be only an

important segment of total distribution costs. But the decision will depend

on the total incidence of costs for alternative modes of transport. In

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general, the criteria that should be taken in mind in deciding on the proper

modes of transport are: cost, speed, frequency, reliability, safety and

appropriateness with regard to the product.

FACTORS AFFECTING CHANNEL DECISION :

a. Unit Value- In general, direct sales are preferred for items of high unit

value and wholesalers are approached for items of low value.

b. Bulk and weight- If Bulk transportation is possible, direct exporting is

preferred..

c. Technical nature- Technologically, complex and specialized products

are usually sold direct.

d. Perishability- The more perishable the product, the shorter should be

the channel. Leasing is usually adopted for technologically perishable

products.

e. Standardization- Indirect channels are possible for standardized

products.

f. Stage of market development- New products are promoted by direct

sales. Indirect channels may be adapted for established products.

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 Table- I

Prefer to have cold drinks

Response No of Respondent Percentage ( %)

Yes 100 100%

No 00 00%
Total 100 100%

Analytical Interpretation:

The given Chart & Table show that the most no. of respondent like to

take cold drink because it gives the full satisfaction in the hot and humid

day. It was found that 100% of respondent likes to take the soft drinks and

00% respondent don’t want to take cold drinks. The people who don’ts

prefer are because of their taste and preference. They are of the perception

that Lassie and Nimbu pani are beneficial than the carbonated soft drinks.

GRAPH-1

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Prefer to have cold drinks

Table- II

Consumption of cold drinks in a day

Response
No of Respondent Percentage (%)
(Time a day)

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 Less than 2 54 54%
2–4 35 35%
More than 4 + 11 11%
Total 100 100%

Analytical Interpretation:

The given diagram & table show the frequency of taking cold

drinks in a day. It was found that 54% of respondent takes the less than 2

cold drink a day, 35% of respondent takes 2 – 4 cold drinks a day. And 11%

of the respondent likes to takes more than 4 cold drinks in a day. The

people who consume more than two cold drinks have a habit of a high

consumption. For them a change in price doen`s changes their demand to a

great extent. They also maintain a brand loyalty in the brand they are

regularly consuming.

Graph II

Consumption of cold drinks in a day

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 Table- III

Preference of Brand name

Response No of Respondent Percentage (%)

Yes 56 56%
No 39 39%
Can’t Say 05 05%
Total 100 100%

Analytical Interpretation:

The graph & table clear view regarding the importance given to a brand

name while choosing the cold drinks. It was found that the 56% of

Respondent says Yes and 39% of respondent say No and the only 5% of

respondent not in a position to say anything.

Graph-III

Preferance of Brand Name

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 Table- IV

Factors Influences choosing particular Brand

Response No of Respondent Percentage (%)

Brand 28 28%
Flavour 48 48%
Advertisement 06 06%
Chilled 18 18%
Total 100 100%

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Analytical Interpretation:

The chart and diagram shows that the way respondent likes the

particular brand of cold drinks. It was found that 48% of respondent likes

the because of flavour, 28% respondent likes the cold drinks because of

brand, 18% of respondent likes because of chilled and only 6% of

respondent likes because of advertisement.

GRAPH-IV

Factors Influences choosing particular Brand

Table- V

Opinion towards Popular Brand

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 Brands No of Respondent Percentage (%)

Coke 58 58%
Pepsi 21 21%
Others 21 21%
Total 100 100%

Analytical Interpretation:

The given diagram gives the view regarding the most popular and

demanded brand. It was found that the 58% of respondent preferred the

.Coke as most popular brand, 21% of respondent say Pepsi as most popular

brand, 16% of respondent referred the coke as the popular brand and the

only 21% of respondent say others was a the most popular brand.

Graph V

Opinion towards Popular Brand

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FINDINGS AND ANALYSIS

SWOT ANALYSIS

STRENGTH:

 Coca-cola Potential brands position in the market.

 Good quality and innovation of product for long term customer

relationship.

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  Good advertising campaign, and brand ambassador.

 Advertisement campaign more effective and change punch line make.

Emotional touch with customer and retail.

 High investment in research and development.

 Coca-cola has a good market share.

 Segment of coke product to every age group.

 To satisfy of retail or through schemes SGA, display.

WEAKNESS:

 Lack of proper distribution in many areas.

 Lack availability 1 it & 1.5 it product pack.

 Lack supply of Kinley water in the market.

 Rising No. of date dealers that will wrong effect in market condition.

 Retailers are not getting schemes at the time.

 No distribute enough signage to retailers.

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OPPORTUNITY:

 Coke is able to capture large mkt. Share.

 More monopoly counters of coke brand.

 To improve market mix (Product, price, promotion, place).

 To increase the sale of Kinley water.

THREATS:

 Pepsi is the major competitors, that means watch myopia in the

market every time.

 Pepsi have captured major market of 500 ml, 1.5 & 2 lt.

 Retailers divert to pepsi because they are getting good schemes and

SGA signage. Increase local brand in the market.

FIELD EXPERIENCE

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The success of any survey depends upon the quality and integrity of the

surveyor who collect the basic data by expressing the subject under the

study and on the respondents who provides the data required by filling up

the questionnaire .The accuracy of the data collected solely depends upon

the cooperation and truthfulness of the person who is being interviewed.

Keeping this in mind i have tried my best to collect the reliable data. During

this process I came across a Variety of experiences some interesting and

some bitter one’s.

After knowing the utility of the survey some of the respondents filled

up the questionnaire sincerely whereas some of the other were not

interested in it . How ever, most of respondents were friendly and

cooperative and willingly filled up the questionnaire with utmost sincerity

and to best of their knowledge.

Barring few exceptions I had a pleasant time with respondents. I hope that

the respondents did not feel the interview insipid and boring.

SUGGESTIONS AND RECOMMENDATIONS

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Doing a survey on consumers market provided a lot of insight into the

dynamics of the market place and with it valuable insights were also

gained into the psyche of consumer and owners.

1. SUPPLY

The demand of Thumps up & Mazza far exceed the supply especially in

case of 200ml and pet bottles. Few shop owners’ clamed that many a

times no supply is made for 3 days and some times even more.

Sometimes the delivery vans of Coca-Cola starts late from the

distribution point and that of rivals reach early .so eateries, which generally

serve soft drinks in the glass, buy the soft drinks from the delivery van

which arrives first.

Salesman at the delivery van to be inconsistent on certain meters likes the

concept of broken bottles. When dealing with the shop and the eatery

owners some salesman do exchange bottles while some do not?

All flavors and all size of bottles are kindly available in the market.

2. COMPANY REPRESENTATION

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Owners confirmed that Company representatives DON’T COME WHEN

CALLED REPEATEDLY.

The Company must ensure that the representatives do visit an outlet at

least once in 3 days to listen and to attained to complaints, if any.

3. SALES PUSH BY EAT & DRINK OUTLET

The Company easily influenced many eatery owners, which provide them

with better facilities. There was a tendency to push the product of the

Company which ever offered them better scheme or benefits.

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 CONCLUSION

From this summer training and project titled "Market Survey of Right

Execution for Coca-Cola” I have learned a lot about real practical work

being done in the market I have also watched & learned the practical

applicability of the various things that we have studied theoretically.

I observed on the basis of survey in Patna city that Coca-Cola lay

emphasis on merchandising in order to become the No.1 brand in soft drink

industry the report was finds out the availability of different flavor and

packs.

Cola-Cola adopt a good customer relationship management, it is focus

on the, segment of the product because each segment is affected by

different sets of factor which hamper or enhance sales. Each segment had

its own Pros & Cons. So we have to understand the various segment of soft

drink industry that which flavor is existing more in the market, Such as

Thums-up strong brand of coke which is more popular in young generation.

I also observe about fate dealer, sub dealer, monopoly counter & its

marketing strategy. Such as fate dealer is influence wrong direction to the

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market. They are supply product at high margin with low scheme.

As we know till now since ill soft drink industry the concept of brand loyalty

is not in that shape in which it is in countries. So company could take some

steps to be to have a good report with the retailers why supply them

regularly and provide them with other monetary benefit.

Limitation of research

1.The area of study is limited to the Market Survey of Right Execution for

Coca Cola aspects of the system, while the marketing has other crucial areas

too which were left unchart

2. The success of any survey depends upon the quality and integrity of the

surveyor who collect the basic data by expressing the subject under the

study and on the respondents who provides the data required by filling up

the questionnaire .The accuracy of the data collected solely depends upon

the cooperation and truthfulness of the person who is being interviewed.

3. Interaction skills as well as the behaviour of the respondents also played

as a constraints during the research.

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 BIBLIOGRAPHY

1. Research Methodology, Kothari. C.R., Research Methodology

Methods & Techniques, New-Delhi, Wishwa Prakashan, edition

2003.

2. Multi Level & Direct Marketing, Branding, Kotler, Philip.,

Marketing Management, Delhi, Pearson Education (Singapore)

Pte. Ltd, 11th edition.

3. Marketing Strategy, Varshney, R.L. & Bhattacharya, B.,

International Marketing Management, New-Delhi, Sultan

Chand & Sons edition 2003.

4. Company Profile, Web-Site:- www.coca-cola.com

<http://www.coca-cola.com>

5. Merchandising & Route Productivity, www.ask-jeeves.com,

www.distributing-company.com.

6. Retailing, Company Souvenirs.

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