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Hindustan Cocal Cola Beverages Private Limited: SNO Subject Matter
Hindustan Cocal Cola Beverages Private Limited: SNO Subject Matter
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CONTENTS
S NO Subject matter
1 Chapter 1
Executive Summary
Introduction
Literature review
Scope of study
2 Chapter 2
Organization Profile
Coca-Cola Co
Sampling
Research Design
Measuring tools
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3 Chapter 3
Findings
Recommendation
Conclusion
4 Chapter 4
Appendix
Questionnaire
Bibliography
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CHAPTER-I
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EXECUTIVE SUMMARY
This project for done for Coca-Cola Pvt. Ltd. With their distribution points at
Belgaum
Ultimate objective of the every organization is to satisfy the needs and wants of their
The study will be done taking 100 as the Sample Size.. The sampling method used y
is “Stratified Random Sampling “. The source for conducting survey was taken
from the distributors Red Outlet List provided by the distributors in Belgaum city.
To know their retailers satisfaction level with respect to the existing channel.
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INTRODUCTION
The project started from 2nd December 2006 to 31st December 2006 and 16
The project was carried due to the criteria of the University for the Completion
The main objective of this in-plant training was to get an exposure to the
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LITERATURE REVIEW
Channel of Distribution
Means used to transfer merchandise from the manufacturer to the end user.
Intermediaries in the channel are called middlemen. Those who actually take title to
the merchandise and resell the goods are merchant middlemen. Those who act as
Broker but do not take title are agent middlemen. Merchant middlemen include
Distribution strategy lies at the core of all successful market entry and
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which produces on-command, customized computers to satisfy individual
customer preferences. At the same time, Dell is able to align its need for
material inputs (such as chips) with customer demand for its computers. Dell
and retailers.
markets and their needs are always changing. It's true, then, that marketing
mobile population. The selling orientation required that more intimate access be
effective. (Attracting new customers costs more than ten times more than
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The interactive dialogue between providers and users of goods and services is
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MANAGEMENT PROBLEM
RESEARCH PROBLEM:
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Due to the time constraint the study is restricted only to the retailers of
The coverage of the objective of the study is limited to the extent of the
Inspite of the above mentioned limitations, every effort has been made and the
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Handling customer complaints on field.
“The main objective behind this project is to study and understand distribution
customers”
distribution channel.
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CHAPTER-II
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ORGANIZATION PROFILE
selling for five cents a glass. Early growth was impressive, but
In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler
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thanked him but took no action. One of his nephews already had urged that Coca-
Two young attorneys from Chattanooga, Tennessee believed they could build a
across most of the United States -- for the sum of one dollar. A third Chattanooga
The three pioneer bottlers divided the country into territories and sold bottling
bottling technology, which improved efficiency and product quality. By 1909, nearly
businesses. Some were open only during hot-weather months when demand was
high.
Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with
manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass
Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle
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became one of the few packages ever granted trademark status by the U.S. Patent
Office. Today, it's one of the most recognized icons in the world - even in the dark!
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S.
Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit
starting in 1923. A few years later, open-top metal coolers became the forerunners of
automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola
Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the
Company began a major push to establish bottling operations outside the U.S.
Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and
South Africa. By the time World War II began, Coca-Cola was being bottled in 44
countries.
During the war, 64 bottling plants were set up around the world to supply the
troops. This followed an urgent request for bottling equipment and materials from
General Eisenhower's base in North Africa. Many of these war-time plants were
later converted to civilian use, permanently enlarging the bottling system and
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1950s … Packaging innovations
For the first time, consumers had choices of Coca-Cola package size and type-the
traditional 6.5 ounce Contour Bottle, or larger servings including 10-, 12- and 26-
ounce versions. Cans were also introduced, becoming generally available in 1960.
Sprite®, Fanta®, Fresca® and TAB® joined brand Coca-Cola in the 1960s. Mr.
Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke®
and Cherry Coke®, followed by POWERaDE® and Fruitopia® in the 1990s. Today
scores of other brands are offered to meet consumer preferences in local markets
merged and evolved into international mega-chains. Such customers required a new
number of bottler consolidations to assure that its largest bottling partners would
Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company invested
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heavily to build plants in Eastern Europe. As the century closed, more than $1.5
21st Century …
The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as consumers seek
brands that honor local identity and the distinctiveness of local markets. As was true
customers and communities are the foundation on which the entire business grows.
Vision
”To achieve sustainable growth; we have established a vision with clear goals.
responsibilities.
People: Being a great place to work where people are inspired to be the best
loyalty.
Mission
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To Refresh the World... in body, mind, and spirit.
Values
They are guided by shared values that they will live by as a company and as
individuals.
Beliefs
“There is much in our world to celebrate, refresh, strengthen and protect. The Coca-
citizenship into action. Through our actions as local citizens, we strive every day to
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refresh the marketplace, enrich the workplace, protect the environment and
”We are a local employer, with responsibility to enable our people to tap into their
full potential; working at their innovative best and representing the diversity of the
world we serve”.
”We are an investor in local economies and a driver of marketplace innovation, with
The reputation of The Coca-Cola Company is built on trust and respect. Our
employees and those who do business with us around the world know we are
committed to earning their trust with a set of values that represent the highest
standards of quality, integrity, excellence, compliance with the law, and respect for
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Our Company has always endeavored to conduct business responsibly and ethically.
The Supplier Guiding Principles (SGP) are a vital pillar of The Coca-Cola
belief that good corporate citizenship is essential to our long-term business success
and must be reflected in our relationships and actions in our workplaces and the
Recognizing that there are differences in laws, customs, and economic conditions
that affect business practices around the world, we believe that shared values must
serve as the foundation for relationships between The Coca-Cola Company and its
practices that comply, at a minimum, with applicable environmental laws and with
local labor laws and regulations. The principles outlined below reflect the values we
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uphold in our own policies, and we expect our direct suppliers to follow the spirit
Prohibit physical abuse of employees and prohibit the use of all forms
4. Eliminate Discrimination
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market. Operate in full compliance with applicable wage, work hours,
health risks.
regulations.
Supplier will comply with all applicable local and national laws, rules,
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10. Child Labor
Supplier will comply with all applicable local and national child labor
laws.
labor.
Supplier will comply with all applicable local and national laws on
Supplier will comply with all applicable local and national laws on
14. Discrimination
discrimination laws.
Supplier will comply with all applicable local and nationa wages and
benefits laws.
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16. Work Hours and Overtime
Supplier will comply with all applicable local and national work hours
Supplier will comply with all applicable local and national health and
safety laws.
18. Environment
environmental laws.
Company
These minimum requirements are a part of all agreements between The Coca-Cola
Company and its direct and authorized suppliers. We expect our suppliers to
compliance with the Supplier Guiding Principles. The Company routinely utilizes
contract workers. If a supplier fails to uphold any aspect of the SGP requirements,
the supplier is expected to implement corrective actions. The Company reserves the
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right to terminate an agreement with any supplier that cannot demonstrate that
Quality
We ensure the quality and safety of our beverages through The Coca-Cola Quality
health and safety. We continuously review TCCQS to ensure it meets the most
of fruit juices and other ingredients sent to us by our suppliers, to ensure and to
safeguard the water we use in our products and the packaging that carries them to
our consumers. We inform and educate our business partners about our standards
so that they meet the highest quality requirements. Under TCCQS, quality is our
The Coca-Cola Quality System: a worldwide initiative involving every aspect of our
business. Everyone who works for or with Coca-Cola is empowered and expected to
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business units. This enables us to continually raise our standards.
Value Chain
Our Suppliers
Our suppliers include those business partners who supply our system with
and services. At a minimum, all authorized and direct suppliers must comply
with all applicable laws and regulations, including those concerning child
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labor, forced labor, abuse of labor, freedom of association and collective
health and safety, and environmental practices. All our new agreements with
Our Customers
Whether customers are large or small, we work with them to create mutual
benefit. Helping them to grow their businesses helps to grow ours, too.
Together with our bottling partners, we serve our customers through account
customers to help make their businesses more efficient and profitable. These
We also work with customers to broaden the range of beverages they offer,
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provide nutritional information and ensure our beverages are marketed
responsibly.
Far from being a burden and waste, packaging adds value to products by extending
troublesome byproduct are at direct odds with the significant role it plays in society.
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Recognizing the role of packaging in no way diminishes the need to further
natural resources, rising energy costs and greater global environmental awareness,
companies focused on long-term success are moving beyond simply limiting impacts
and are working toward competitive packaging solutions that maximize social and
environmental value.
About Bottling
One of our great strengths is our ability to conduct business on a worldwide scale
At the heart of this approach is our bottling system. Before any of our 2,400
packaged and distributed. Since we reach 6 billion consumers in over 200 countries,
our bottling system has to be the best. Our business opportunities are enormous and
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overall responsibilities.
PORTFOLIO: We bring the global market place beverage brands that anticipate
Our bottling partners are local companies so they are rooted in their communities,
thinking and acting locally. They are employers, purchasers of local goods and
services, good neighbors, and, of course, producers of the world's most popular
beverages.
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It's a big job, and sometimes it's done quite creatively. In Indonesia, for instance,
boats transport Coca-Cola® and our other brands between the many hundreds of
islands that make up that nation. In the Amazon, where the main road is often the
Across much of Africa, bottlers deliver to thousands of family-run kiosks and home-
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Coca-Cola is often thought to be one brand made by one company. In reality, it is a
vibrant business system, in more than 200 countries around the world, made up of
The Coca-Cola Company and more than 300 Coca-Cola bottlers. Most of our
Together with our bottling partners, we operate the most extensive beverage
distribution system in the world. Known informally as the Coca-Cola system, this
network of 848 plants, approximately 200,000 vehicles and more than nine million
coolers and vending machines helps us to manufacture and distribute our products
to customers and consumers around the world, where our beverages are consumed
-- Owns the global Coca-Cola brand and owns or licenses over 400 other
brands.
retailers.
noncarbonated.
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with sweetener and water and/or carbonated water (depending on the
Our bottling partners operate the majority of Coca-Cola bottling and canning
volume. The Coca-Cola Company also operates a limited number of bottling and
canning facilities.
Bottling partners range from international and publicly traded businesses to small,
we have a controlling ownership interest in only a small number, meaning that the
structures, and in accordance with applicable laws and customs. Our relationship
with these partners is one of collaboration and support, based on mutual self-
interest, common goals and shared values. We make every effort to positively
influence environmental activities and policies throughout our bottling system and
to provide information from both our Company-owned operations and our broader
system.
Community
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We live and work in more than 200 countries and have deep roots in communities
around the world. We are connected to the lives and livelihoods of those
jobs in our own operations as well as jobs in businesses we touch along the way. We
call it the multiplier effect, where we not only positively affect those directly
employed by our business but also create and expand businesses that do business
with us.
and locally relevant community programs. Wherever we operate, we work with local
Economic Impact
The Coca-Cola business is essentially a local one. With our bottling partners, we
produce our products in more than 800 plants around the world. In those plants and
other facilities, we employ local people, pay taxes to governments, pay suppliers for
programs.
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We support socioeconomic development in developing and emerging markets
Local Initiatives
The Company and our bottling partners contribute to a wide range of community
causes in countries around the world. In keeping with the local nature of our
communities.
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Responding to Local Needs: We support a wide range of initiatives that respond to
orphanages, hospices
training
Cultural heritage and the arts: Promoting the arts and artists, preserving
heritage
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COKE PRODUCTS IN INDIA:
1. Coca-cola
2. Thumps Up
3. Sprite
4. Fanta
5. Limca
6. Maaza
7. Kinley
8. Minute Maid
Out of which
products
and
Thumps up, Limca, Fanta are the products of Parle which are
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1. North
2. South
3. Central
CEO
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SOUTH
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The entire Karnataka unit is divided into mainly TWO (2) territories and
1. North Karnataka
2. South Karnataka
1. Bangalore city
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SALES MANAGER
EXECUTIVE
SALES OFFICER
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DISTRIBUTION CHANNEL OF COCA-COLA PRODUCTS FOR
DEPOT (DHARWAD)
DISTRIBUTORS
RETAILERS
CONSUMERS
Note: For places like Bijapur and other big markets the distribution channel does
not consist of the “DEPOT” at Dharwad, they directly get their stock from the
Bangalore plant.
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BANGALORE PLANT DETAILS
PLANT
1. ACCOUNTS
2. LOGISTICS
3. SALES
4. HUMAN RESOURCE
5. MARKETING
6. QUALITY CONTROL
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TYPES OF OPERATIONS UNDERTAKEN BY THE COMPANY
the operations directly carried by the company. These COBO’s have to work under
the guidelines by the Coca-cola Co. There are three (3) COBO units in South India
Bangalore (Biddi)
Andhra Pradesh
Chennai
The plant at Hospet was initially a FOBO unit but now it’s been purchased by the
company and soon the company operations will start in that plant.
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DISTRIBUTORS DETAILS IN BELGAUM
Vehicles
Manpower
Liquid value
Distributors in Belgaum
1. Trimurthi
2. Desai
3. Tejasvi
In season - 14 units
In off-season – 6 units
* Units refers to the vehicles possessed by the distributors for local logistics
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Factors influencing the assignment of areas to distributors salesman
a) Daily
b) Alternative days
c) Once a week
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Working of distributors
The Brand pack separately after unloading the vehicle i.e. the brand
- Coke
- Lime
- Orange
- Juice
- Water
The company gives target to the distributors and these distributors with help of
1. Daily
2. Weekly
3. Brand wise
4. Sales wise
Here the distributor focuses on weaker brands and tries to push maximum number
of these weaker units into the mixed cases ordered by the retailers.
For Ex: The sales of Fanta are considered to be low then the distributor adds more
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The distributor have to maintain a four (4) day stock with them which will become
the reorder level once when the order is placed at the Dharwad depot the stock
comes up the next day but an important point to note here is unless and until the
empty bottles reach the depot the new stock will not reach the distributor.
Potential route
Note: For Potential the vehicle goes daily and for non potentials it goes once in a
week
The potential routes are those routes in which the distributor gets maximum
business as the number of outlets will be more and therefore the vehicle goes
Ex: If a distributor has 400 outlets in his area he has to plan accordingly as per
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FIRST PLAN:
This plan is considered as yielding season where maximum business will be earned.
SECOND PLAN:
Here in this plan there will be minimum business and during this season there will
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The distributors’ salesman is trained properly with respect to his behaviour with the
retailers. As soon as the vehicle goes to the outlet it is the duty of the sales person to
The company supports the distributors in terms of incentives during the off season
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DISTRIBUTORS:
The deposit of 1500 cases at the rate of 200 Rs per case = 3,00,000
Liquid Value on an average including all mini, 300 ml, half litre and 2 litre =
2,00,000
Vehicle = 4,80,000
If a distributor has 50,000 volume, 11 Rs per case and Other Expenses 35,000 then ,
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SAMPLING
Selection of Sample:
number of people and hence devote more energy to ensure that the information
POPULATION:
SAMPLE FRAME:
SAMPLE UNIT:
SAMPLING SIZE:
SAMPLE METHOD:
Stratified Sampling.
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RESEARCH DESIGN
1. Survey
2. Implementation
In the month of December survey was conducted and in the remaining period
Survey:
For the survey purpose the entire Belgaum city was divided into three strata’s,
1. Bus stand area which had places like Bus stand, Fort road , Khade
3. Club road ,Sadhaahiv nagar, Azam nagar, Nehru nagar, JNMC road Shiv
As per the route planner provided by the company the survey was conducted
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1. BRONZE
2. SILVER
3. GOLD
4. DIAMOND
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Implementation
After the survey was conducted the Implementation work was carried out for the
surveyed outlets, during the remaining period i.e. 16 weeks (2 days in a week from
In this procedure the visits were made to the outlets along with the company vehicle
and seen that the different problems encountered with the outlets during the survey
were sorted out and seen to it the promotional activities were actually implemented.
The problems of display, Credit etc was known during survey. So these problems
It was also seen that every outlet survey had a proper display of the company’s
product.
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Primary sources:
a) Questionnaire
b) Personal interaction
Secondary sources:
b) Organization Report
RETAILER SURVEY
PERSONAL INTREVIEW
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DATA COLLECTION TECHNIQUE:
QUESTIONAIRE
PERSONAL INTERVIEW
MEASURMENT TECHNIQUES:
This project is analyzed with the help of SPSS software wherein the data is
Bar Graphs
Frequency tables
Percentage tables
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CHAPTER-III
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Statistics
N Valid 100
Missing 0
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Nature of outlet
100
80
60
40
20
Percent
0
Coke Pepsi Sahred
Nature of outlet
The above chart shows that out of the surveyed outlets 76% outlets
surveyed are shared outlets, 23% are coke monopoly outlets, 1% is Pepsi
monopoly.
Statistics
N Valid 100
Missing 0
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Relationship with the distribtor
120
100
80
60
40
20
Percent
0
Good Bad
The above chart shows that 99% of the retailers surveyed had good
distributors have to control this aspect because the word of mouth plays
a very important role and they should try to make their relationship
100%.
Q3) How many times the distributor visits outlets per week
Statistics
N Valid 100
Missing 0
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How many times the distributor visits outlets per week
50
40
30
20
Percent
10
0
Once Alternative Daily
The above chart reveals the frequency of visit made by the distributor in the
market. This chart shows that to 47% of the outlets surveyed the visit was on
alternative days, 46% of the outlets surveyed the visit was on daily basis and 7% of
the outlets surveyed the visits are made once a week. This shows that the company is
Statistics
N Valid 100
Missing 0
60
50
40
30
20
Percent
10
0
Once Alternative Daily
The above chart shows that there is a huge demand for Coke Products in Belgaum
city and therefore 61% of the retailers are expecting daily visits from the
distributors in order to meet the demand from the consumers, therefore the
36% expect an alternative days visits instead of daily visits, the outlets which are
Statistics
N Valid 100
Missing 0
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Are coke's product delivered on time
80
60
40
20
Percent
0
yes No
The above chart shows that delivery of the products is on time and 75% of the
retailers have agreed to this question and 25% have not agreed.
The company has to make efforts to supply the products to these 25% outlets.
Statistics
N Valid 100
Missing 0
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No 34 34.0 34.0 100.0
Total 100 100.0 100.0
60
50
40
30
20
Percent
10
0
yes No
The chart shows that the company is effective during each supply with respect to the
Therefore 66% of the retailers surveyed are satisfied with the supply during each
Statistics
N Valid 100
Missing 0
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above
Total 100 100.0 100.0
50
40
30
20
Percent
10
0
0-10 10-20 20 and above
The chart shows that the sales per week of 50% of the retailers is 0-10 cases and
45% is 10-20 cases so efforts should be made to increase the sales by proper supply
Another method is to supply according to their wants and there should not be
FINDINGS
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2. The basic problem is that the supply from the plant to the depot and then to
the distributors takes a long time due to which the distributors are not in the
3. On an average the sales per week of the retailers is between 0-20 cases.
4. The sales people and the distributor have maintained good relationship with
the retailers.
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SUGGESTIONS
1. The company must have a super stockiest in Belgaum city so that this can
cater not only the need of the Belgaum market but also the surroundings
places.
2. The company has to convert Pepsi outlets into coke outlets by giving them
3. The company has to start its plant in Hospet as soon as possible so that there
the stock.
4. The company has to put on their best efforts to convert the76% shared
outlets into coke monopoly outlets by giving promotional activities and also
5. 36% of the retailers expect alternative days visits instead of daily visits, the
outlets which are non potential outlets expect the distributor to visit once a
6. To make the satisfaction level of the retailers to 100% the company has to
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CONCLUSION
Distribution Channel plays a very important role especially with respect to the soft
drink industry because if the product is not available on time the consumes will
switch on to other brands and the company will loose its market share and hence an
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CHAPTER IV
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if ‘B’ Why
a) Good b) Bad
5. How many times would you expect distributor vehicle to visit you
a) Yes b) No
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7. Are you satisfied with the supply of coke during each delivery
a) Yes b) No
BIBLOGRAPHY:
All the information needed to complete this project is obtained from the following
sources:
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