Acknowledgement

Co-operation and building up of moral are the essence of success. These are two factors that go a long way in achieving it. It is a Herculean task, which lacks these two determinants of success. Summer training was an exposure to corporate environment. It was an opportunity and great pleasure for me to be in such an environment and having interaction with concerned people. I express my heartily respect and profound thanks to Mr. Arpan Saikia (Marketing and Channel Executive) for his enlightening and meticulous guidance for the consummation and evaluating of this project.

I am also very thank full to the Market Developers (MD) for their corporation while doing the research on topic.

Lecturer Rahul Purkayastha, Faculty, NERIM, Guwahati, who was in the role of my Faculty Guide, left no stone unturned in guiding me along the course of my Summer Training Project work. I am grateful to them those given me this opportunity to work on such type of project, without them, it is not possible for me to complete the project.

I sincerely hope that my first venue in this field is appreciated.

Offering thanks, Biswajeet Gogoi. . .

Declaration
I hereby declare that this work on Analysis of Horizontal Expansion Strategy of Coke

in Guwahati, has been originally carried out by me. This work has not been earlier submitted
either in full or in part for any other purposes elsewhere.

Biswajeet Gogoi M.B.A 4th Semester. Roll No. 17. NERIM, Guwahati.

Company Name: HINDUSTAN COCA COLA BEVRAGES

PVT.LTD.
Industry: Consumer product / FMCG products. Types of Company: Private Limited Company, Foreign Based Company Location: Guwahati

Sales Office: 3- Dihang Arcade

G. S. Road, near Rajiv Bhawan Guwahati.

ABOUT THE COMPANY

Every person who drinks a Coca-Cola enjoys a moment of refreshment. And shares an experience that millions of others have served. All of those individual experiences combined have created a worldwide phenomenon a truly global brand. On the distribution front, 10-tonne trucks, open-bay three wheelers that can navigate the narrow alleyways of Indian cities, ensure availability of our brands in every nook and corner of the country. The company-owned Bottling arm of the Indian Operations, Hindustan Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and distribution of beverages across the country. A career at Hindustan Coca-Cola Beverages Pvt. Ltd. is truly a one-of-a-kind experience. Come taste life at CocaCola. Coca-Cola Company, nourishing the global community with the worlds largest selling soft drink since 1886, returned to India in 1993 after a gap of 16 years giving a new thumbs-up to the Indian Soft Drink Market. In the same year, the Company took over ownership of the nation's top soft-drink brands and bottling network. No wonder, our brands have assumed an iconic status in the minds of the consumers. Coca-Cola serves in India some of the most recalled brands across the world including names such as Coca-Cola, Diet Coke, Sprite, Fanta, Thums Up, Limca, Maaza and Kinley (packaged drinking water),Kinley Soda, Minute Maid Pulpy Orange ,Minute Maid Nimbu Fresh.

Mission, Vision and Values

The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, it is important to look ahead, understand the trends and forces that will shape the business in the future and move swiftly to prepare for what's to come. All must get ready for tomorrow today. That's what the 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners. Mission The Roadmap starts with the mission, which is enduring. It declares the purpose as a company and serves as the standard against which the actions and decisions are weighed.
y y y

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Vision The vision serves as the framework for the Roadmap and guides every aspect of the business by describing what is needed to accomplish in order to continue achieving sustainable, quality growth
y y

People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy

people's desires and needs.

y

Partners: Nurture a winning network of customers and suppliers, together we create mutual,

enduring value.
y

Planet: Be a responsible citizen that makes a difference by helping build and support sustainable

communities.
y y

Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

Winning Culture The Winning Culture defines the attitudes and behaviors that will be required to make the 2020 Vision a reality. Values The values serve as a compass for the actions and describe how they behave in the world.
y y y y y y y

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

The History of Coca-Cola

In May 1886, Coca-Cola was invented by Doctor John Pemberton, a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca-Cola formula in a three legged brass kettle in his backyard. His bookkeeper friend, Frank Robinson chose the name for the drink and penned it in the flowing script that became the Coca- Cola trademark. Mr. Frank suggested the name Coca- Cola because they represented the two key ingredients; Cocaine derived from the coca leaf and Caffeine from Kola nut. Now Coca- Cola is available in 200 countries and territories. At the time of introduction, Coca- Cola sold 9 drinks a day but today it sales averages 800,000,000 per day around the world. It has been a steady and confident journey to growth and success.  1886: Coca Cola sold for the first time marked as an Esteemed Brain Tonic and Intellectual Beverages     1886: John Pemberton Drink became known as Coca Cola 1887: Pembertons Coca Cola Syrup & Extract registered trade mark granted 1891: Asa Candler acquired the Coca Cola Business for $ 2300 1893: Asa Candler registered the Coca Cola Company as Coca Cola trade mark with U S patent office   1893: The Trade mark Coca Cola first registered with the U.S. Patent Office 1899: Coca Cola company signed its first agreement with an Independent bottling company and sell Coca Cola across the US, which was allowed to buy the Syrup and produce bottle and distribute Coca Cola drink  1919: The Company sold to a group of investors for $25000000 led by Atlanta business man Ernest Woodruff      1923: Woodruff introduced six bottle cartoons 1929: Coca cola started to be available through Vending machine 1933: Coca cola expanded its business into 44 countries 1934; Coca cola introduced Santa as Christmas Promotion 1936: Coca cola celebrated 50th Anniversary

                             

1940: Coca cola was bottled in more than 45 countries 1941: COKE first appeared in bottle 1945: Coke registered as a trademark in US patent office 1946: Minute Maid frozen orange juice concentrate was introduced 1946: Coca Cola Company purchased rights to the Fanta Soft Drink 1960: Fanta was introduced 1960: Coke can available for twelve once 1960: Company purchased Minute Maid Corporation and entered the Citrus beverages market 1961: Company introduced the lemon lime drink Sprite 1963: Company introduced sugar free cola Tab 1963: TAB was introduced 1964: Coca Cola company merged with Duncan Food Company 1967: Coke formed Coca Cola Company Food Division from Minute Maid Company and Duncan Foods 1968: Frozen Coca Cola Introduced 1972: Mr. Pibb was introduced 1977: Coca Cola Contour was patented 1978: Two-litre and plastic bottle of Coca cola Introduced 1979: Diet Coke was introduced 1983: Caffeine free Coca Cola Diet Coke, TAB were introduced 1985: Diet Fanta was introduced 1985: New Coke was introduced 1985: Coca cola introduced New product named Diet Coke 1985: Coca Cola announced the flavour changes 1985: Plastic Can was introduced 1986: Coca Cola Enterprise Inc. was formed from existing and acquired bottling operations 1986: Coca Cola celebrated 100th Anniversary 1987: Minute Maid brand Soft Drinks were introduced 1889: Diet Mello Yello was introduced 1990: Caffeine-free Coca Cola Classic and PowerAde introduced 1990: World of Coca Cola in Atlanta opened

  

1991: Blend of recycled and virgin plastics bottles was introduced 1992: New Coke renamed as Coke 11 1992: Coca Cola was available in 195 countries and territories & appeared in more than 80 languages

               

1993: Coca Cola re-entered in India 1993: Contour PET bottles were introduced 1993: Tab clear was introduced 1994; Fruitopia was introduced 1995: Coca Cola completes its acquisition of Barqs Inc. 1997: 0.5 L contour bottler was introduced 1997: Surge was introduced 1997: Citra was introduced 1998: Coca Cola bought Cadbury Schweppers non US beverages business in 155countries 1998: Coca Cola Card promoted 2000: Coca cola and AOL signed multi-year global strategic marketing 2000: Coca Cola online store Cocoa-Colastre.com opened 2000: Coca Cola lauched new job website coca-cola on campus.com 2001: Simply oranged introduced 2001: Coca Cola introduced iFountain. 2001: Diet Coke Introduced 2002: Vanilla Coke was introduced

COCA COLA in India

Coca-Cola is a carbonated beverage that is produced and manufactured by Coca-Cola Company and is often referred to simply as Coke. It is sold in stores, restaurants and from vending machines in more than 200 countries. On the distribution front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian cities, ensure availability of coke brands in every nook and corner of the country. Coca Cola, which is one of the most reputed companies among top five companies in the world entered in India in 1952. Coca Cola India had made significant investment to build and continuously

improve its business in India, including new production facilities, waste water treatment plants, distribution system and marketing equipment. In 1960 Coke Introduced another brand Fanta in Indian market. Coca cola introduced brands as Sprite Tab in the decade of sixties. Coca cola was a leading Soft drink company till 1977. In 1977 Indian Government has decided to throw Coke out of the country because it was refusing to adhere to a particular provision of Foreign Exchange Regulation Act. After 16 years of absence in India Coca cola company again entered in India when ministry of Foreign Investment allow it to Invest in India. In January 1993, Government of India granted approval to Coca Cola South Asia Holding Inc. USA (CCSAH) to set up two wholly owned subsidiaries named Hindustan Coca Cola Holding Private Ltd and Bharat Coca Cola Holding Pvt. Ltd. Hindustan Coca Cola Holding Pvt. Ltd. set up two downstream subsidiaries for bottling operations named Hindustan Coca Cola Bottling North West Pvt. Ltd. (with investment of 435 crores ) and Hindustan Coca Cola Bottling South West Pvt. Ltd (with an investment of 250 crores). Bharat Coca Cola Holding Pvt. ltd set up Bharat Coca Cola Bottling North West (with an investment of Rs 250 crores) and Bharat Coca cola Bottling South East Pvt. Ltd (with an investment of Rs 345 crores). These four subsidiaries merged into a single company called Hindustan Coca Cola Beverages Pvt. Ltd.

Operations of Coca Cola:

The operations of Coca Cola in India can be broadly categorized under two heads- Coca Cola India and Hindustan Coca Cola Beverages Private Limited.

 Coca Cola India (CCI)

CCI is responsible for y y manufacturing the syrup formulation advertising the products and creating awareness in the minds of the consumers and the market

 Hindustan Coca Cola Beverages Pvt. Ltd. (HCCBPL)

HCCBPL is responsible for y bottling operations

marketing, promotion and distribution of the products in the market

Coca Cola in North East

Coca Cola is the market leader of Soft Drink market in North Eastern Part of India. It is available in all seven states of the region. HCCBPL operates in the North East with a single city sales office in Guwahati , at the following address3- Dihang Arcade G. S. Road, near Rajiv Bhawan Guwahati. The Company has two plants in this region. In the Jorhat plant, the bottling of the 300ml RGB Bottles is done; whereas in Byrnihat Plant, the bottling of 600ml Mobile and 1.5l PET bottle.

Organization Structure

General Manager

General Sales Manager

Human Resource Manager

Finance Manager

Sales Generati ng Assets

Marketin g Manager

Road To Market Manager

Area Sales Manager

Asst. Human Resource Manager

Asst. Finance Manager (Fixed Capital)

Asst. Finance Manager (Working Capital)

Sales Generatin g Assets Executive

Marketin g Executiv e

Road To Market Executiv e

Sales Team Leader

Human Resource Executiv e

Finance Executiv e

Mechani c

Market Develop er

Fig: Organisation Stucture

Coca Cola company in Guwahati:

Coca Cola Company is the market leader in the cold drink market all over the Guwahati. It distributes its product through two distributors and its Depot in the city. The names of the distributor with their area of distribution have been mentioned below1.Ramdeo Associates Areas Covered : Lokhra, Kalapahar, Fatasil Ambari, Sarab Bhatti, Paltan Bazar , Ulubari, B. Barooah Road, Rajgarh Link Road, Bhangagarh.

2. Purnima Enterprise Areas Covered : Fancy Bazar, A T Road, Bharalumukh, Santipur, Durga Sarobar, Guwahati Railway Station. 3.Depot: Areas Covered : Byrnihat, Jorabat, Jagiroad, Sonapur, Khanapara, Beltola, Ganeshguri,

Panjabari, Satgaon, Narengi, Noonmati , Chandmari, Guwahati Club, Silpukhuri, Zoo Road, Commerce College, Bhangagarh, Uzan Bazar.

Bottlers:In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces(produce) syrup concentrate which is then sold to various bottlers throughout pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories. The company operates a franchised distribution system dating back to 1889 where TCCC only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P 500.

All India Division COBOs are now ISO 14001 Certified

All 25 of the Divisions Company-owned bottling plants have gained the international standard ISO 14001 Environment Management System certificate. The ISO 14001 certificate is the internationally recognized standard of Environmental Management. A company must demonstrate management commitment, the total involvement of all employees and a compliance with applicable regulatory and internal company standards. Strict division compliance with eco system ensured that the bottling plants were ready to meet the tough evaluation criteria and standards of the ISO auditors.

RIGHT EXECUTION DAILY (R.E.D.)

The red color has always signified the brand Coke since its inception. The brand has come a long way, but the color still remains an inseparable part. The abbreviation RED stands for Right Execution Daily, which has been the breakthrough concept, which has helped Coca Cola to fully utilize the market and lead far ahead of its competitors in the recent years. According to this concept, the companys customers (outlets) have been divided into two categories-

RED Outlets Non RED Outlets

The field force of Market Developers of the company has to visit the RED outlets and carry out the regular right execution of three aspects viz. Visicooler Standards, Product Availability and Activation. The first distinct feature in RED Activation is to maintain some visicooler standards like its prime position, proper working condition, purity, brand order compliance etc. The next important thing is to ensure the product availability in the three channels of outlets. The availability standards of the Coca-Cola brands are different for the three channels. Finally, Activation is the last but the most important feature which encourages sale of beverages in an outlet. In simple words, Activation can be termed as silent salesman. It ensures proper availability of activation elements like rack, flange, glow sign board etc. in an outlet. The activation elements differ from one channel to the other.

This execution takes place by what is called a Call. The 7 steps of Call are as under Check the Outside Advertising, i.e. if the outside activation elements are properly placed or not, e.g. Glow Sign Board outside the outlet  Go inside the outlet and Greet the Customer (shopkeeper)  Visi-Merchandising, i.e. check if the visicooler (if present) is working properly and if the coke products are available.  Warm Merchandising, i.e. check the warm display, i.e. whether the coke products that have been kept outside the visicooler are displayed properly or not

 Check Inside Advertising, i.e. if the Inside activation elements are properly placed or not, e.g. 1-tier or 3-tier rack inside the outlet  Take the Order from the customer. Also, make sure if the order has been delivered by salesman and the products the products have been arranged as per standard  Thank the Customer and leave the outlet
Each MDs area is divided into 2-3 routes based upon the size of the area and each route is visited per day. As such, every RED outlet should get visited by the respective MD every alternate or third day. This helps build a continuous and close relation between the customer and the company, thus creating the companys goodwill among the customers. Such a relation creates an enduring customer base for the company.

Brand Order:Cola i.e. Coca-Cola Thums-up Sprite Maid Nimbu Fresh Kinley Soda Limca Fanta Kinley Water Maaza Minute Maid Pulpy Orange Minute Lemon Orange Juice Kinley

RED Score:Every RED Outlet needs to be scored on the basis of the Execution Standards set by the company. The MDs record the condition of the execution standards in each outlet regularly in what is called the Red Tracker, which reflect the performance of the MD in his/her area. The monthly average of the RED Scores of all the outlets of an area becomes the RED score for the MD of the given area. Also the scoring of each area is done by A. C. Nelson, on a monthly basis.

The RED Scoring is done on three parameters- Visi-cooler, Availability and Activation. However the total scores on each parameter varies form on channel type to another.  For Grocery, E&D Type 1 and Convenience y y y Total Visi-Cooler Score 25 points Total Availability Score 60 points Total Activation Points 15 points

 For E&D Type 2 y Total Visi- Cooler Score 25 points

y y 

Total Availability Score 50 points Total Activation Points 25 points

Market Developers (MDs) These are the employees of HCCBPL. Their job is to visit and develop a given set of outlets. They have to ensure outlet execution with respective to availability, merchandising and activation standards. It is their responsibility to increase the number of RED outlets in their area on a quarterly basis. They have to work close with the customers and try to continuously increase the market capitalization of the company. They build a good relationship with the customers, which creates the companys goodwill in the market. Role of MDs can be briefly summed up as under Market Visit  Cooler Merchandising  Warm Display  Activation  Availability  Reporting  Customer Relationship

Sales Executives
These are the immediate superiors or supervisors of the MDs. Every distributor may have one or more SE based on the area they cover. The SEs must keep a regular vigil on the amount of products sold in their respective area per day. Also, they keep a close eye on the performance of the companys products against the competitors products

Salesmen
These are the employees of the distributors. Their job is to sell the products to the outlets of their respective area and collect the amount from the customers.

PRODUCTS AND BRANDS

The Coca Cola India offers a rich bunch of brands that stand ahead of their rival brands of Pepsi, Frooti, Annapurna and Pran. There are various brands of sparkling drinks & juices, soda and water under the umbrella of Coca Cola Company. Some of these are owned, others used under license by the Company. These have been listed herein.

Coca-Cola
Open Happiness! Coca Cola is the worlds favourite brand and the most valuable brand. Coca Cola has a truly remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of the worlds largest manufacturer, marketer and distributor of non-alcoholic beverages in the world.Coca-Cola has made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation.

Thumps Up
Strong Cola Taste, Macho Personality! Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by the Coca-Cola Company in 1993. It has a strong cola taste with an exciting personality. Thums up is known for its strong, fizzy taste and its confident, mature and masculine attitude. This brand clearly seeks to separate the men from the boys.

Sprite Sudden Refreshment! Fast, Intense and Surprising! Sprite, the global leader in lemon-lime category, is the second largest sparkling beverage brand in India. Launched in year 1999, Sprite with its cut-thru perspective has managed to be the true

teen icon. Its crisp clear lemon lime taste refreshes the body and mind. Straightforward and unpretentious, Sprite is all about being true to oneself and living by simple and honest code of ones own instincts. Limca Lime n lemoni Limca Derived from Nimbu+Jaisa, hence Lime-Sa, Limca refreshes, renergizes, rejuvenates not just the body but also the emotions. Born in 1971, Limca has remained unchallenged as the No.1 sparkling drink in the Cloudy Lemon Segment. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider of Freshness of Emotions. The idea is an emotional platform for the young-adult, who pursue success and achievement, but still want freshness to rejuvenate the fun, energy, excitement and romance in their lives. Fanta Bolder Taste! Internationally, Fanta is the orange drink of the Coca-Cola Company. The favorites drink since 1940s; Fanta entered the Indian market in the year 1993. Fanta has occupied a strong place as The Fun Catalyst. Perceived as a fun youth brand, Fanta stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery associated with happy, cheerful and special times with friends. Maaza
Maaza Lao, Aam Ki Pyaas Bujhao Launched in 1976, Maaza is bottled mango, the fruit associated with good times like no other. Universally loved for its taste, colour, thickness and wholesome properties, Maaza is the mangolovers first choice. Its universal appeal is responsible for the brand being recognized as a drink that

provides wholesome family fun.Maaza has been realized as the ultimate mango indulgence. It provides

the most authentic experience of rich, juicy alphonso mangoes to satisfy the thirst for mangoes- anytime and anywhere.

Minute Maid-Pulpy Orange The history of the Minute brand goes as far back as 1945 when the Florida foods Corporation developed orange juice powder. The company developed a process that eliminated 80 percent of the water in the orange juice, forming a frozen concentrates that when reconstituted created orange juice. They branded it Minute Maid, a name connoting the convenience and the ease of preparation (in a minute). Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. Minute maid is one of the worlds largest juice and juice drink brands. Over the years, through innovations and unmatched consumer experience has established itself as a successful juice brand all over the world.

Minute Maid Nimbu Fresh Bachpan Nimbu Ka Chaska Coca-Cola in India is enjoying market leadership in the juice drink segment with brand Maaza and Minute Maid Pulpy Orange. Nimbu Fresh has further extend its leadership in this fast growing segment. Minute Maid Nimbu Fresh, a lemon juice-based drink. The lemon juice content in Minute Maid Nimbu Fresh brand is 5.7 per cent. It promises to be the flavour of the lime juice of the childhood.

Kinley Club Soda Kinley Club Soda is a carbonated water owned by The Coca-Cola Company and sold in many Central European countries and India.

Kinley Water The importance of water can never be understated. Particularly in a nation such as India where water governs the lives of the millions, be it as a part of the rituals or as the monsoon which gives life to the sub-continent. Kinley water understands the importance and value of this life giving force. Thus, it promises water that is as pure as it meant to be. It comes with the assurance of safety from the company. That is why it is introduced with reverse osmosis. Right to pure, safe drinking water is fundamental. A universal need, that cannot be left to chance.

Channels
 Grocery Outlet primarily engaged in retailing of food & various household items. It includes Grocers (Outlets dealing mainly in grains, provisions, spices, edible oil, vanaspati etc.) and General Stores (Outlet selling items of day to day requirements & stocking a variety of branded products).  E&D types 1 Outlet selling items of eat which are being consumed primarily standing in the outlet or being taken away for Future Consumption. Does not have place to sit. It includes bakery / sweet shops/ QSR / juice centers / soft drink shops/ Tea shops etc.  E & D type 2 Outlet selling items of eats which are being cooked/made in outlet with the possibility of consuming those products within the outlet. The outlet should have a place to sit, it includes sit down restaurants /Bars/ Dhabas/Cafes etc.  Convenience- It includes outlets which are small stores, generally accessible locally. These are often located alongside busy roads. It includes Chemists /STD Booths / Pan Beedi shops, etc.

Class
 Bronze-Those outlets, which sells <= 200 carets per year.  Silver- Those outlets, which sells 201 to 499 carets per year.  Gold- Those outlets, which sells 500 to 799 carets per year.

 Diamond- Those outlets, which sells more than 800 carets per year.

What is Horizontal Expansion?

Expansion of business capacity through the absorption of facilities or buildings as well as through the acquisition of new equipment to handle an increased volume in sales in which the business is already engaged. In microeconomics and strategic management, the term Horizontal Expansion describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. Horizontal Expansion in marketing is much more common than Vertical Expansion is in production. Horizontal Expansion occurs when a firm is being taken over by, or merged with, another firm which is in the same industry and in the same stage of production as the merged firm, e.g. Pepsi has adopted strategy of Vertical Expansion by which Pepsi wants to improve its sale from Coke monopoly outlets, means Cokes monopoly outlets are being taken over by Pepsi now in this condition to improve its sale Coke need to open new outlets which is called Horizontal Expansion Strategy. A monopoly created through Horizontal Expansion is called a Horizontal Monopoly.This is the expansion of a firm within an industry in which it is already active for the purpose of increasing its share of the market for a particular product or service.

Reason of Horizontal Expansion?

The ultimate objective of coke is to acquire more customers and serve them properly. While doing Horizontal Expansion take care to the competitors strategy. The main competitor is PEPSI, who has opted Vertical Expansion to generate more sell however Coke do not believe on Vertical Expansion because Vertical Expansion has limited preview so COKE is great believer in Horizontal Expansion and this strategy helped to the company to maintain its leadership in the soft drink industry.

India is a big country having diversified taste and appearance and same character is reflected in their demography. Horizontal Expansion helps the company to serve more people and more customers touch point because in the waste country many customers commute.

Benefits of Horizontal Expansion:

 Provides incremental volume & revenue for business.  By Horizontal expansion there will be more outlets of our product in the market which will sell our product in more quantity. This will generate incremental revenue for the business.  Helps improve route productivity. There are predetermined routes through which products transported and delivered at the coke outlets. If we open more outlets on the routes it will increase the productivity because more outlets will be covered and more products will be delivered with a negligible increase in time and efforts. Hence it will improve productivity of the route.  Improves Profitability of our Distributors expenses on routes as delivery of product are incurred by the distributers. Opening new outlets will give more revenue to our distributors also. With the increase in route productivity will improve profitability of the distributors.  Reduced Dependence on Large Customers, We know that coke products have a very good demand. To comply with this we have to provide large amount of supply. In case we have few outlets a large amount of stock is gathered at few retailers. In this case they become monopolistic and demand many things like coolers refrigerators discounts margins etc. from the company. So it is very necessary to reduce dependence on large retailers by opening new outlets.  Increase market visibility, selling at more outlets give more market visibility of the product which gives higher product recognition and brand value to the products.  Economies of Scale.  Increase in market power over supplier and downstream market channel.

What is Vertical Expansion

Vertical Expansion is the process whereby firm acquires another firm at different level of distribution. For example manufacturer may acquire a wholesaler or wholesaler may acquire a retailer. This is called forward integration. If retailers acquires wholesaler then it is known as backward vertical integration. It is an effective means of coordination, commitment. Coca cola shifted their several function like packaging, transportation and selling to retailers, to their bottlers. It is cost saving for coca cola and to enlarge market for their products. In 1990s coca cola is engaged in the strategy of vertical integration, this means that in purchasing bottlers coca cola will perform itself storage, transportation, packaging and marketing to retailers. At present they in Guwahati they are buying off the distributors phase wise.

Advantage of horizontal expansion over vertical expansion:

Both expansion techniques are meant for increasing sales volumes. But in Horizontal Expansion Company can earn more profits by spending less. Lets see the profit story of horizontal expansion with the help of this example.

MEASURES
Number of existing outlet Total volume in physical case(in lakh) VPO in physical cases Number of new outlets New outlets VPO Incremental Volume(in lakh physical cases) Grand Total(volume in lakh cases)

2010
10000 50 500

2011
10000 55 550 2000 125 2.5

50

57.5

The above table clearly indicates the importance of opening new outlets. By doing vertical expansion only growth in profit was not very effective but because of opening new outlets sales increased to a large extent.

Research Methodology:
The study is based on Primary data and Secondary data. Secondary Data was collected from the Companys website and MDs Sales Presenter as well as Primary Data was collected through structured questionnaire. The questionnaire was designed by keeping all the objectives of the study in mind.

The type of research which is used to conduct survey was. Sample Unit:
Sampling units are the retailers of grocery shop, General store, Betel shop, Medicine Store, Restaurants from different parts of Guwahati city.

Sample Size:
My sample size was 50 outlets.

Sampling Technique:
Simple Random Technique is followed.

Sampling Method:
Data was collected by retailer survey. The retailers are directly contacted and interviewed at their retail counter.

Method of data collection:

There are mainly two types of data: 1: Primary Data. 2: Secondary Data.

1. Primary Data Collection:

Primary Data can be collected by three methods: a) Observation b) Experiment c) Surveys But here only survey method of data collection is preferred which is very suitable to reach the researchers motto.

Research Instruments:
Printed questionnaires were used as the research instrument to collect the required information.

Area of Survey:
The survey was conducted in different location of Guwahati city.

2. Secondary Data Collection:

As secondary data were not available with shopkeepers as well as stockiest, so these were collected from company records.

Q. No:- 1- What Type of Channel do you hold? Table:- 1 Sl. No 1 2 3 4 5 Channel name Convenience Store E & D Type 1 E & D Type 2 Grocery Type 1 Grocery Type 2 No. of store 15 13 7 10 5 Percentage 30 26 14 20 10

PIE DIAGRAM SHOWING TABLE:- 1

Grocery Type 2 10% Grocery Type 1 20%

No. of Store
Convenience Store 30%

E & D Type 1 26% E & D Type 2 14%

Interpretation:- From the above diagram it is evident that, 30% outlets are convenience store , 26% are E & D Type 1 , 14% are E & D Type 2 , 20% are Grocery Type 1 and 10% are Grocery Type 2.

Q, No:- 2- What type of outlet are you in? Table:- 2 Sl. No 1 2 3 4 Type of outlets Pepsi Exclusive Coke Exclusive Never sell cold drinks Both (a) and (b) Total numbers 10 20 5 15 Percentage 20 40 10 30

PIE DIAGRAM SHOWING TABLE:- 2

Types of Outlets
Pepsi Exclusive 20% Both (a) and (b) 30%

Coke Exclusive 40% Never sell cold drinks 10%

Interpretation:- From the above diagram it is evident that, 20% are Pepsi Exclusive outlets, 40% are Coke Exclusive outlets,10% of the outlets never sell cold drinks outlets, and 30% sells both (a) and (b).

Q. No:- 3- What is the Chilling equipment you are using? Table:- 3 Sl. No 1 2 3 4 5 Name of Chilling equipment Coca cola fridge Pepsi fridge Own fridge Ice Box Both (a) and (b) No. of chilling equipment 15 12 5 1 17 Percentage 30% 24% 10% 2% 34%

PIE DIAGRAM SHOWING TABLE- 3

Chilling Equipment
Both (a) and (b) 34% Coca cola fridge 30%

Ice Box 2% Own fridge 10%

Pepsi fridge 24%

Interpretation:- From the above diagram it is evident that, 30% retailers use Coca cola fridge as chilling equipments,24% Pepsi fridge as chilling equipments, 10% Own fridge chilling equipments,2% Ice box chilling equipment, and 34% both (a) and (b).

Q. No:- 4 - Kindly rates the level of satisfaction on communication from the company? Table:- 4 Sl. No 1 2 3 4 5 Parameters Highly Satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly Dissatisfied No of Respondents 6 19 8 13 4 Percentage 12% 38% 16% 26% 8%

BAR DIAGRAM SHOWING TABLE- 4

38 40 30 20 10 0 Series1 Series1 12 16 8 26

Interpretation:- From the above diagram it is evident that, 12% are highly satisfied respondents, 38% are satisfied respondents, 16% respondents are neither satisfied nor dissatisfied.26% are dissatisfied respondents and 8% are highly dissatisfied.

Q. No:- 5- If a brand which you prefer is not delivered to you properly then what you do? Table:- 5 Sl. No 1 2 3 4 Options Go for other brand Call to distributor/ depot Stop selling that brand Call to companys salesman No. of Respondents 32 0 5 13 Percentage 64% 0% 10% 26%

PIE DIAGRAM SHOWING TABLE:- 5

Call to company s salesman 26%

Chart Title

Stop selling that brand 10% Call to distributor/ depot 0%

Go for other brand 64%

Interpretation:- From the above diagram it is evident that, 64% of respondents wants to go for other brand. 0% of respondents want to call the distributor/ depot. 10% of respondents want to stop selling that brand. 26% respondents want to call to companys salesman.

Q. No:- 6- Which of the following promotion effect the sales mostly? Table:- 6 Sl. No 1 2 3 4 Option Scheme Case refund Price pack Under crown scheme No. of Respondents 21 7 4 18 Percentage 42% 14% 8% 36%

PIE DIAGRAM SHOWING TABLE:- 6

Respondents
Under crown scheme 36%

Scheme 42%

Case refund 14% Price pack 8%

Interpretation:- From the above diagram it is evident that, 42% respondents wants scheme, 14% of respondents wants case refund ,8% respondents wants price pack promotion, and 36% of respondents wants under crown scheme promotion .

Q. No:- 7 (a) - Is there any effect of mega events( e.g. World Cup/ IPL) on sale of Coke(in peak season like summer) Table:- 7(a) Sl. No 1 2 3 4 Option Increase Decrease No effect Cant say No. of Respondents 7 6 22 15 Percentage 14% 12% 44% 30%

PIE DIAGRAM SHOWING TABLE:- 7(a)

No. of Respondents
Increase 14% Can t say 30% Decrease 12%

No effect 44%

Interpretation:- From the above diagram it is evident that, 14% of respondents says there is an increase on sale of Coke during mega events ( in peak season), 12% of respondents who says there is a decrease on sale of Coke,44% of respondents says there is no effect on sale of Coke during mega events, and 30% of respondents who cant say.

Q. No. 7(b)- Is there any effect of mega events on sale of Coke( in non- peak season)? Table:- 7(b)Sl. No 1 2 3 4 Option Increase Decrease No effect Cant say No. of Respondents 14 5 23 8 Percentage 28% 10% 46% 16%

PIE DIAGRAM SHOWING TABLE:- 7(b)

Respondents
Can t say 16% Increase 28%

No effect 46% Decrease 10%

Interpretation:- From the above diagram it is evident that, 28% respondents says there is an increase on sale of Coke during mega events ( in non- peak season) , 10% of respondents says there is decrease on sale of Coke,46% of respondents says there is no effect on sale of Coke during mega events, and the 16% of respondents cant say.

Q. No:- 8- (a) kindly rate the behavior of salesman in over all year towards: (A) On time delivery Table:- 8(a)-A Sl. No 1 2 3 4 5 Parameters Highly Satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly Dissatisfied No. of Respondents 0 13 22 7 8 Percentage 0% 26% 44% 14% 16%

BAR DIAGRAM SHOWING TABLE:- 8(a)-A

Respondents
0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

44% 26% 14% 0 Highly Satisfied Satisfied Neither Dissatisfied Highly satisfied nor Dissatisfied dissatisfied 8% Series1

Interpretation:- From the above diagram it is evident that, 0% retailers are highly satisfied with the salesmans On Time Delivery, 26% are satisfied, 44% are neither satisfied nor dissatisfied, dissatisfied and 8% are highly dissatisfied with the salesman.

Q. No. 8(a)- kindly rate the behavior of salesman in over all year towards: (B) Visit Frequency Table:- 8(a).B Sl. No 1 2 3 4 5 Parameters Highly Satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly Dissatisfied No. of Respondents 5 15 18 7 5 Percentage 10% 30% 36% 14% 10%

BAR DIAGRAM SHOWING TABLE:- 8(a)-B

40% 35% 30% 25% 20% 15% 10% 5% 0% Highly Satisfied Satisfied Neither Dissatisfied Highly satisfied nor Dissatisfied dissatisfied 10% 14% 10% Series1 30% 36%

Interpretation:- From the above diagram it is evident that, 10% of retailers are highly satisfied with the salesman during visiting frequency, 30% are satisfied with the salesman, 36% are neither satisfied nor dissatisfied with the salesman during visiting frequency, 14% are dissatisfied, and 10% are highly dissatisfied with the salesman.

Highlights of Findings
. 1. It is found that, 30% outlets are convenience store , 26% are E & D Type 1 , 14% are E & D Type 2 , 20% are Grocery Type 1 and 10% are Grocery Type 2

2. It is found that, 20% are Pepsi Exclusive outlets, 40% are Coke Exclusive outlets,10% of the outlets never sell cold drinks outlets, and 30% sells both (a) and (b). Hence we found out that Coke is the market leader and Pepsi is the market challenger. 3. It is found that, 30% retailers use Coca cola fridge as chilling equipments,24% Pepsi fridge as chilling equipments, 10% Own fridge chilling equipments,2% Ice box chilling equipment, and 34% both (a) and (b). 4. It is found that, 12% respondents are highly satisfied with the communication from the company, 38% are satisfied respondents, 16% respondents are neither satisfied nor dissatisfied.26% are dissatisfied respondents and 8% are highly dissatisfied. 5. It is found that, 64% of respondents want to go for other brand. 0% of respondents want to call the distributor/ depot. 10% of respondents want to stop selling that brand. 26% respondents want to call to companys salesman. 6. It is found that, 42% respondents wants scheme, 14% of respondents wants case refund, 8% respondents wants price pack promotion, and 36% of respondents wants under crown scheme promotion . 7. (a). It is found that, 14% of respondents says there is an increase on sale of Coke during mega events ( in peak season), 12% of respondents who says there is a decrease on sale of Coke,44% of respondents says there is no effect on sale of Coke during mega events, and 30% of respondents who cant say. (b). It is found that, 28% respondents says there is an increase on sale of Coke during mega events ( in non- peak season) , 10% of respondents says there is decrease on sale of Coke,46% of respondents says there is no effect on sale of Coke during mega events, and the 16% of respondents cant say.

8. (a) . It is seen that, 0% retailers are highly satisfied with the salesmans On Time Delivery, 26% are satisfied, 44% are neither satisfied nor dissatisfied, dissatisfied and 8% are highly dissatisfied with the salesman

8. (b) B. It is seen that, 10% of retailers are highly satisfied with the salesman during visiting frequency, 30% are satisfied with the salesman, 36% are neither satisfied nor dissatisfied with the salesman during visiting frequency, 14% are dissatisfied, and 10% are highly dissatisfied with the salesman.

Suggestions and Recommendations

 Training should be given to encourage marketers to promote coke at new areas where there is not yet competitors involved.  Sales person should be provided with all the facilities that will help those in reaching shops that are generally inaccessible due to factors like distance, time etc. For this purpose, the company should enable its marketing wings in such a way that they can facilitate communication and accessibility to penetrate into markets devoid of sales person services.
 A strange feedback from the market has, however, paused comprehension about Cokes market. The survey has shown that the practice of delay for supplying products in the market can create a compelling situation for the shopkeepers to change or switch over from Coke. Coke should always step forward to verify and maintain its supply chain system in striking a balance between what is produce and how much is sold.

 Schemes and offers will always trigger shopkeepers enthusiasm in selling the product. Coke should find out a cost effective solution so that it could extend favor to the shopkeepers in keeping beverages from the company along with competitors products. A round of preliminary survey about shopkeepers preferred schemes could be solicited that can excavate an alternative that best balances both of the companys cost factors and shopkeepers selling spree as well.

Conclusion

Hindustan Coca - Cola beverage Pvt. Ltd. is worlds largest beverage company and as we know that the Coca-Cola Company is on that stage because of its large number of products and by giving the customer complete satisfaction regarding taste and quality. Now a day its necessary to show customer and to make believe them that our product is better than others in the aspects which can be done in a better way through merchandising the products. As far as journey with the company, I grasped lots of knowledge within two months. Because many of the company officials has assisted and given me the valuable notes and experience of their life. The primary objective of the my research is to analyze the horizontal expansion strategy of Coke and at the end of the research I found that there is requirement of changing the strategy for acquiring new customer for Coke but company should take care of its existing customer because they are the main instrument of promotion for any company so old customer should be fully satisfied with the company.

Limitations
 The training was for shorter period of time that is why it was not possible to carry out a detail study.  The sample size was limited.  The strategies of the company changes very frequently it is difficult to make exact recommendation.  Behavior of many retailers was not co-operative.