Phase 1 of Coca Cola

Company Overview
Coca cola is the company and a flagship of Hindustan coca cola beverage limited started in
the year 1892 with the intention to provide the motion towards non-alcoholic Beverage in
India. Coca cola is considered as the world’s largest beverage company in the world. It
manufactures and markets sparkling drinks and non-alcoholic beverages content . So
company has undertaken the major steps to improve their quality of drinking and the work
environment in which they are working. So basically coca cola has outreached their products
portfolio in the market with the diversification in the products and the services they have
provided. The product concentrates and syrups are sold to the authorizing bottled partner who
process these products in order to sell the finished products in the market of bottled drinks
and huge variety of customers accept these drinks in the market.

It is a total beverage company endeavouring around 500 brands in more than 200 countries
and territories as of the year 2019. Company has employed more than 7, 00,000 people
encouraging the local communities and providing economic opportunities globally. Coca
Cola is constantly transforming its products portfolio to suit for the health consciousness
people by making changes in the product portfolio and innovation of bringing new products
in the market so that producer and distributor can sell and produce more for its customers.

Its portfolio comprises of some of the world’s most valuable brands such as Ade S plant
based beverage, Peak Teas , Georgia Coffee , Gold Honest Tea , Costa Coffee , PowerAde
Sport Drinks , Vitamin water , Zico Coconut Water , Dasani Water , Juices and Innocent
Smoothies etc.
 Industry Overview
In this FMCG Sector which is considered as a key sector of the Indian Economy has
employment to nearly 3 million people which account for approximately 5% of the total
factory employment in the country. The FMCG Goods are mainly consumed daily in every
single society irrespective of the social class, age groups, income groups etc. Growing
awareness easier access, changing lifestyle have been the key growth drivers for this sector in
India.

The Indian FMCG industry has witnessed some significant changes done through the year
1990’s. Many Players in the Indian FMCG Industry are facing several problems on account
of increased competition from the small and regional players and from its slow growth across
its various product categories.

As a result of it, most of the companies in India were forced to revamp their products ,
marketing & distribution channels as well as customer service strategies in order to
strengthen their position in the market.

Unlike the other most economic sectors FMCG share a float in a steady manner irrespective
of the global market dip because they generally satisfy rather fundamental as opposed to the
luxurious needs.

In India beverages form an important part of the lives of the people. It is that industry in
which the players of the market constantly innovate in order to come up with better products
to gain more consumers and satisfy the existing customers in the market. The Beverage
Industry is vast and there is various ways of segmenting it so as to cater the right product to
the right person in the market.

If the Behavioural Patterns of consumers in India are noticed closely so we can observe that
consumer perceive beverage in two different ways i.e. beverages are a luxury and the
beverages have to be consumed occasionally. These two perception are the biggest challenges
faced by the beverage Industry these days in India. In order to leverage the beverage
industry , it is important to address this issue so as to encourage regular consumption as well
as to make the industry more affordable.

Food and Beverages accounts for 19% in total FMCG sector. HCCBPL (Hindustan Coca
Cola Beverage Private Ltd) has an extensive distribution system which is spanning in more
than a million outlets with the world class execution standards. They focus on the system to
develop strong customer value while delivering the preferred choice for refreshment at an
arm’s length of desire to the consumer.

Hindustan Coca Cola Beverage have receive a 4% decline in revenue at 9082 crores during
March 2020 as compared to the 9503 crores in the last year before lockdown due to COVID-
19. Net sales are not comparable as the turnover of last year is calculated on the net Goods
and Services Tax since last Feb.

The FMCG Sector , which is growing at a rate of 9% is the fourth largest sector in the indian
Indian Economy and is worth of Rs 93,000 crore. The main contributor are making upto 32%
of the sector in the South Indian Region. It is predicted in the year 2010, the FMCG sector
will be of worth Rs 1,43,000 Crores.
 Mission, Vision and Values of Coca Cola
Mission Statement :-

“To refresh the world in mind , body and spirit , to inspire moments of happiness and
optimism through our brands and actions and to create a value for making a Difference ”.

To provide a roadmap which is enduring and full of happiness to the customers with a
purpose of the company is to set the standards against the decisions of the company from
which we can weigh our actions and decisions.

Vision Statement:-

“To make every India’s First Choice of Refreshment available within easy reach”

Our Main Vision is to serve the framework for our roadmap and helps in guiding every aspect
of our business by describing what we need to accomplish in order to continue achieving
sustainability and a good quality of growth for our products in the market in India.

Values:-

Values serves as a compass for the actions and describes the behaviour of customers in the
world and how we behave in the world. There are Seven values of coca cola which are as
follows :-

a) Leadership
b) Empowerment
c) Passion for Winning
d) Citizenship
e) Integrity
f) Accountable
g) Teamwork
 Internal Resources and Competencies
As in today’s scenario every company has some internal sources and factors that affect the
company as well as resources of the company from external resources and factors. As in coke
there are also some internal resources and factors for coke industry in order to improve its
competencies from other companies. But due to some of the external factors there are some
internal suppliers and stakeholders that affect the company also which is explained as
follows:-

Internal Suppliers :-

1. Coca cola has a long list of suppliers who able to supply goods and services in the
market along with other competitors in the market.

2. Coca cola being and advert chain in supply market has a long scope of increasing the
suppliers in the market.

3. They are essential to Coca-Cola’s corporation success. They assist the company to
refresh the world with over 1.6 billion times each day by delivering necessary
products and services for their business.

4. They are having an ethical, staple and sound supply which is significant for the
development of Coca-Cola firm in the local communities across the world. As a
corporation purpose they are responsible for folding its direct suppliers to value that
are required by the opportunity law.

5. There are 3 types of suppliers of coca cola that supplies good and services in the
market like :-
a) Group Critical Suppliers :- They are those suppliers who helps in fulfil the
following criteria like high percentage of spending on juices , Cans , Resins ,
Glass and Limited alternatives and partnerships that helps in supporting the
business analytics.

b) Country Strategic Suppliers :- They are those suppliers which deals in

having strategic importance at a local or a regional level.

c) Tactical Suppliers :- They are those suppliers who represent low volume and
/ or low spending to the suppliers that are supplying many goods and services
from the sources available in plenty of amount in the market and these sources
helps for enabling a flexible supply base in the market.

Both Group & Country Strategic Suppliers are considered as critical to the
overall competitiveness and success of coca cola as a HBC company.

Internal Stakeholders :-