GENERAL MANAGEMENT PROJECT ON

“A STUDY OF BEVERAGE INDUSTRY WITH REFERENCE

TO COCA COLA COMPANY”

Submitted in partial fulfilment for the award of the degree of

Master of Management Studies (MMS)

(Under University of Mumbai)

Submitted By

PRATHAMESH SURALKAR

(Roll No. 181158)

Under The Guidance of

MRS. CELINA JOY

2018-2020

Pillai Institute of Management Studies and Research

New Panvel - 410 206

 CERTIFICATE
This is to certify that project titled “A Study Of Beverage Industry With Reference To Coca
Cola Company” is successfully completed by Mr. Prathamesh Narendra Suralkar during
the IV Semester, in partial fulfilment of the Master’s Degree in Management Studies
recognized by the University of Mumbai for the academic year 2018-2020 through. This
project work is original and not submitted earlier for the award of any degree / diploma or
associateship of any other University / Institution.

Name: Prathamesh Narendra Suralkar

Date: (Signature of the Guide)

 DECLARATION
I hereby declare that this Project Report submitted by me to the Mrs. Celina Joy is a bonafide
work undertaken by me and it is no submitted to any other University or Institution for the
award of any degree diploma/ certificate or published any time before.

Name: Prathamesh Narendra Suralkar

Roll no.: 181158 Signature of the student

 ACKNOWLEDGEMENT
Before we get into the thick of things, I would like to add a few words of appreciation for the
people who have been a part of this project right from its inception. The writing of this project
has been one of the significant academic challenges I have faced and without the support,
patience and guidance of the people involved, this task would not have been completed. It is to
them I owe my deepest gratitude.

I hereby take this opportunity to thank Prof. Celina Joy, who was my guide for this project.
Without her support, knowledge and insights this would not have been possible.

This project is dedicated to all those who have helped me directly or indirectly during the
process of the project.
EXECUTIVE SUMMARY

This report has been prepared with a specific purpose in mind. It outlines the history and
current scenario of the Coca-Cola Company globally and locally. The first part of the study
takes us through the present state of affairs of the beverage industry and Coca-Cola Company
globally.

The report contains a brief introduction of Coca Cola Company and Coca-Cola India and a
detailed view of the tasks, which have been undertaken to analyse the market of Coca-Cola
i.e. we have performed Competitive, PESTLE and SWOT analysis of Coca-Cola Company
and PESTLE and SWOT analysis of Coca-Cola India in order to identify areas of potential
growth for Coca-Cola. We have also given a brief description of Trends and Forces that are
affecting Coca-Cola Company globally.

The main objective of this project report is to analyse and study in efficient way the current
position of Coca- Cola Company. The study also aims to perform Market Analysis of Coca-
Cola Company & find out different factors effecting the growth of Coca-Cola. Another
objective of the study was to perform Competitive analysis between Coca-Cola and its
competitors. Apart from these objectives this study is also conducted to understand the
Customer preferences towards various Coca-Cola products.
 INDEX
SR. NO. PARTICULARS PAGE
NO.
1 INTRODUCTION 1

2 BEVERAGE INDUSTRY IN INDIA 2-4

2.1 TYPES OF MARKET 2

2.2 GOVERNMENT REGULATION 3

2.3 CONSUMER TRENDS 3

2.4 AWARENESS 4

3 INDUSTRY ANALYSIS 5-11

3.1 PESTEL ANALYSIS 5-8

3.2 PORTERS FIVE FORCES ANALYSIS 9-11

COMPANY ANALYSIS 12-13

4
-MISSION VISION OBJECTIVES

4.1 SWOT Analysis 14-16

4.2 BCG MATRIX 17-19

4.3 7S FRAMEWORK 20-22

4.4 ANSOFF MATRIX 23-24

5 RESEARCH METHODOLOGY 25

5.1 OBJECTIVE OF THE STUDY 25

5.2 SCOPE OF THE STUDY 25

5.3 LIMITATION OF THE STUDY 25

5.4 METHODOLOGY 25

5.5 LITERATURE REVIEW 26-27

6 HR PRACTICES IN COCO COLA INDUSTRY 28-31

7 DATA ANALYSIS 32

8 SUGGESTION & FINDING 33

9 BIBILOGRAPHY & REFERENCES 34

1. INTRODUCTION
The Beverage industry in India has a total turnover of around 65 million USD, which

includes value added products of around 20.6 billion USD. Coca Cola, Nestle and Pepsi are

the leading beverage brands that have been ruling the Indian beverage market since a past

few decades. Amongst all the beverages, Tea and Coffee are manufactured as well as

exported heavily in the international markets succumbing to the individual demands around

the world. Beverage industry in India constitutes around USD230 million among the 65

million food processing industry. The major sectors in beverage industry in India are Tea and

Coffee which are not only sold in domestic markets but re also exported to a range of leading

overseas markets. About beverage companies in India various milk products, health

beverages, beer and country liquors have also been contributing largely in the rising demand

of beverages in India. Among all the leading beverage companies in India, Coca-Cola India,

is one of the country’s leading beverage companies, offering a range of healthy, safe, high

quality, refreshing beverage options to consumers. Over the last 22 years, ever since its re-

entry in 1993, Coca cola has accounted for a thriving growth since its inception. It occupies

around 60% of the carbonated drinks sector in the Indian beverage industry. Recruitment is a

process of searching the prospective employees and stimulate them to the organization. When

one more persons apply for jobs then there will be a scope for recruiting better persons. It is

an activity which bringing together the seeking jobs. In simple words, it is refers to

discovering the source from where potential employees may be selected. This process leads

to higher productivity, better wages, high morale, reduction in labour turnover and enhanced

reputation. It also stimulates people to apply for jobs; and it is a positive process.

1
2. Beverage Industry in India:

The beverage industry like Coca cola, Pepsi, and Nestle are the leading beverage brands that
are ruling the Indian beverage market since past few decades.
Among the USD 65 billion food processing industry. The beverage industry in India
constitutes of around USD 230 million among the USD 65 billion food processing industry.

The major sectors in beverage industry in India are tea and coffee. These products are are not
only sold heavily in the domestic market but are exported to wide range in leading overseas
markets. Among all the leading beverage companies in India, Coca cola has accounted for
doing well since its inception. It occupies around 60 percent of the carbonated drink sector in
the Indian beverage industry. Another powerful brand in beverages is Nestle India Limited.

1.1 Types of Market

The Beverage industry in India has Perfect Competition with Infinite Buyers and Sellers.
The products manufactured can be divided into the following groups:

 Hot beverages
 Carbonated drinks
 Powdered drinks, health drinks and juices
 Mineral and flavoured water.

Coca Cola introduced Indians to the taste of cola in 1970, before exiting the country in 1977
due to changes in the government policies. ‘Parle’ which was facing stiff competition from
Coca Cola then took over the reins by launching new carbonated drinks such as Thumbs Up,
Gold Spot and Limca. However, Parle’s supremacy lasted only until 1990 when Coca Cola
and Pepsi forbidden into the Indian market. Today, Coca Cola and Pepsi together contribute
to more than 60% of the carbonated drinks market. The rest is controlled by Parle, Bisleri and
other local brands.

2
 1.2 Government Regulations:

1.2.1 Legal -

This industry is a State affair and hence every manufacturer needs to get licenses in every
state they need to operate in. Separate licenses are required for production, bottling and
distribution of the product, making it a heavy task for company. FDI in this industry is 100%
and when the case arises in which the owner is a foreign company but the investor is Indian,
then the investment will require a prior approval of Foreign Investment Promotion Board and
it will be for a given licensed capacity. To increase the investment, the investor will need a
completely new approval. The licensing is done under the Industrial (Development and
Regulation) Act, 1956.

1.2.2 Economical –

India’s beverage market is largely unorganized, with nearly 75% of the demand serviced by
companies in the unorganized sector.
Consumption of non-alcoholic beverages is expected to increase by 16.5-19% over the next
three years as more people are trading up to packaged drinks, according to a report by the
Indian Council for Research on International Economic Relations (ICRIER) and the Indian
Beverage Association (IBA).
“The sector has seen double digit growth post-liberalisation, and is currently contributing
over 1% to India’s GDP. With industry leaders such as Coca-Cola and PepsiCo announcing
significant investment plans for India, there is a clear indication that the sector offers
significant potential for growth in the coming years”, said by S.R. Goenka, president, IBA.

1.3 Consumer trends:

Indian beverage industry has witnessed major growth over the past few years. Growing middle-
class population, rapid urbanization are some of the key factors strengthening their
growth? Moreover, with a population of 1.3 billion, India is one of the largest consumer
markets across the globe. It is also demographically one of the youngest generation with around
50% of its population under the age of 25 and around 65% below the age of 35.

3
1.4 Awareness:

Rising consciousness about heart- and weight-related health issues, especially among young
adults, has significantly pushed the consumption of packaged fruit drinks and growing at a
faster pace as compared to carbonated drinks. This has benefited industry products that are
consumed as health or dietary supplements.

Energy drinks with additives such as caffeine, taurine and guarana have been also marketed as
a substitute for coffee, especially among younger consumers.

4
3. Industry Analysis:
3.1 PESTEL ANALYSIS OF BEVERAGE INDUSTRY IN INDIA:

PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It
is a tool that helps the organisations for making strategies and to know the EXTERNAL
environment in which the organisation is working and is going to work in the future.

POLITICAL FACTORS:

Political factors play a significant role in determining the factors that can impact Beverage
Association India. Beverage Association India. is operating in Beverages - Soft Drinks in
more than dozen countries and expose itself to different types of political environment and
political system risks. The achieve success in such a dynamic Beverages - Soft Drinks
industry across various countries is to diversify the systematic risks of political environment.
Beverage Association India. can closely analyze the following factors before entering or
investing in a certain market-

Political stability and importance of Beverages - Soft Drinks sector in the country's economy.
 Level of corruption - especially levels of regulation in Consumer Goods sector.
 Bureaucracy and interference in Beverages - Soft Drinks industry by government.
 Intellectual property protection
 Pricing regulations – Are there any pricing regulatory mechanism for Consumer
Goods
 Taxation - tax rates and incentives
 Wage legislation - minimum wage and overtime
 Work week regulations in Beverages - Soft Drinks
 Mandatory employee benefits
 Industrial safety regulations in the Consumer Goods sector.
 Product labeling and other requirements in Beverages - Soft Drinks

5
ECONOMIC FACTORS:

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate investment
in an economy. While micro environment factors such as competition norms impact the
competitive advantage of the firm. Beverage Association India can use country’s economic
factor such as growth rate, inflation & industry’s economic indicators such as Beverages -
Soft Drinks industry growth rate, consumer spending etc. to forecast the growth path of not
only –sector name-- sector but also that of the organization.

Economic factors that Beverage Association India. Should consider while conducting
PESTEL analysis are -

 Type of economic system in countries of operation – what type of economic system

there is and how stable it is.
 Government intervention in the free market and related Consumer Goods
 Exchange rates & stability of host country currency.
 Efficiency of financial markets – Does Beverage Association India. needs to raise
capital in local market?
 Infrastructure quality in Beverages - Soft Drinks industry
 Skill level of workforce in Beverages - Soft Drinks industry.
 Business cycle stage (e.g. prosperity, recession, recovery)
 Economic growth rate
 Discretionary income
 Unemployment rate
 Inflation rate
 Interest rates

6
SOCIAL FACTORS:
Society’s culture and way of doing things impact the culture of an organization in an
environment. Shared beliefs and attitudes of the population play a great role in how marketers
will understand the customers of a given market and how they design the marketing message
for Beverages - Soft Drinks industry consumers. Social factors that leadership of Beverage
Association India should analyse for PESTEL analysis are -

 Class structure, hierarchy and power structure in the society.

 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies
encourage entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests.

TECHNOLOGICAL FACTORS:
The beverage industry is taking a Big Data approach to common issues. According to a study
by KPMG, 49% of surveyed beverage CEOs are using analytics to fuel operational and
supply chain decisions. This approach rewards proactive firms by using omni-present data
collection to actively improve product quality and consistency, resulting in a better brand
reputation and greater market penetration.

But this engagement isn't limited to the manufacturing line. Firms with an eye on the
competition are using data more than ever to effectively position themselves in the market. In
the aforementioned survey, 42% of CEOs surveyed responded that they were using analytics
to better affect product distribution and 35% of those surveyed were using data to acquire
customers.

 Recent technological developments by Beverage Association India.

Competitors.
 Supply chain management well supported by latest SAP/ERP software on a
global scale.

7
ENVIRONMENTAL FACTORS:
Different markets have different norms or environmental standards which can impact the
profitability of an organization in those markets. Even within a country often states can have
different environmental laws and liability laws. For example in United States – Texas and
Florida have different liability clauses in case of mishaps or environmental disaster. Similarly
a lot of European countries give healthy tax breaks to companies that operate in the
renewable sector.

Before entering new markets or starting a new business in existing market the firm should
carefully evaluate the environmental standards that are required to operate in those markets.
Some of the environmental factors that a firm should consider beforehand are -

 Weather
 Climate change
 Laws regulating environment pollution
 Air and water pollution regulations in Beverages - Soft Drinks industry
 Recycling
 Waste management in Consumer Goods sector
 Attitudes toward “green” or ecological products
 Endangered species
 Attitudes toward and support for renewable energy

LEGAL FACTORS:
In number of countries, the legal framework and institutions are not robust enough to protect
the intellectual property rights of an organization. A firm should carefully evaluate before
entering such markets as it can lead to theft of organization’s secret sauce thus the overall
competitive edge. Some of the legal factors that Beverage Association India. leadership
should consider while entering a new market are -

 Anti-trust law in Beverages - Soft Drinks industry and overall in the country.
 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law

8
 3.2 POTER’S FIVE FORCES:

 Threat of New Entrants:

1. Capital Requirements Extensive Production & Distribution System to

compete with the industry leaders i.e. High Capital Requirements.

2. Proprietary Product Differences- Unique Packaging, image, secret formula is

required i.e. High barriers to entry.
3. Learning Curve- Industry technology is low and the manufacturing process is
not difficult, therefore the learning curve is short i.e. low barrier to entry.
4. Access to Inputs- Item such as cane, beet, corn syrup, honey, concentrated
fruit juice, plastic, glass, and aluminium are easily available i.e. low barrier to
entry.
5. Brand Identity- huge investment is needed to build a brand and foster
customer loyalty i.e. high barrier to entry Access to Distribution Potential
distribution network is blocked by major player i.e. High barrier to Entry.
9
 Bargaining Power of Supplier:
1. Supplier Concentration - No. of Supplier for major ingredients and other
items are moderate i.e. Limited power over industry.
2. Input Differentiation Sugar- and other chemicals are commodity items
therefore supplier does not matter i.e. very little power over the industry
3. Financial Sources- Since industry is profitable, financial sources are available
for expansion and upgrading and this is favourable to industry.
4. Backward/Forward Integration- The suppliers do not have the capital
required to forward integrate into the soft drink industry i.e. Attractive to
investors.
5. Access to Labor- Does not require highly skilled labor. Labor is easily
available at lower cost. I.e. industry dominates over the labor market.

 Bargaining Power of Buyer:

1. Buyer Information- Flow of information from manufacturer to distributer and
down to retailer that leads to the collaborative pricing
2. Threat of backward Integration- As distributors are specialized in the
transportation and promotion of the product, it is moderately low.
3. Price to Total Purchase Manufacturer relies on the distributor to represent at
the local level and maintain healthy relationship i.e. Buyer power is moderately
high.

 Threat of Substitute Product (Till 2016):

1. Though Fruit juices, sports drink, energy drink might act as a substitute
product, yet soft drinks were comparatively less expensive and threat of
substitute product was moderately low
2. (As of 2017) - Small beverages regional players such as Fresca Juices have
really affected the revenues of leading brands such as Coca-cola and PepsiCo
i.e. presently threat of substitute product is very high.

10
 Rivalry among Competitors:
1. Diversity among Competitors Low level of product diversity makes the soft
drink industry unattractive for investors Industry Growth Rate With high growth
rate it can be said that this industry is moderately attractive for investors.

11
4. COMPANY ANALYSIS:
4.1 Company Profile:

The Coca-Cola Company is the world’s biggest refreshment organization that operates in
more than 200 nations with a market portfolio of more than 3000 drinks items that include
sparkling beverages and refreshments like water, squeezes, juice drink, tea’s, espressos,
drinks and caffeinated beverages. Headquartered in Atlanta, Georgia, it has more than 92,400
co-partners over the six working groups in Eurasia, Africa, Europe, Latin America, North
America and Pacific region (Polaris Institute, 2005). The company production process mainly
focuses on manufacturing refreshment bases and syrups that make the organization’s mark
exceptional, and providing packaging operations. Coca-Cola has both the license and the
brands to operate legally. In a bid to unify its client base, the Coca-Cola Company has
invested heavily on advertising activities which incorporate both print and TV promotions,
online programs retail store shows, sponsorship, challenges and bundle plans.

The company’s focus on beverage production and advertising empowers it to understand and
meet the different and ever changing refreshment needs of its consumers all over the world. A
worldwide business works on a nearby scale in every region because of the quality of the
Coca-Cola framework, which encompasses the company itself as well as its more than 300
packaging partners across the globe. While majority of the people simply perceive the
company as Coca-Cola, its framework operates through various nearby channels. The
company not only produces beverages, but also drinks bases and syrups to packaging
operations, to which it claims the marks and is thus responsible for purchaser mark
advertising activities.

MISSION:

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.

 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference.

12
VISION:
Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.

 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.

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

mutual, enduring value.

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

sustainable communities.

 Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.

 Productivity: Be a highly effective, lean and fast-moving organization.

13
4.2 SWOT ANALYSIS OF COCA-COLA INDIA:

 STRENGTH:
 STRONG BRAND IMAGE

Coke has its history of about more than a century and this long continuity has definitely added
to the brand image in the minds of the consumers and to its wallet. The products produced and
marketed by Coca-Cola India have a strong brand image.

Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the brand
name of Coca-Cola Company as a whole.

The new campaign is a part of a complete restructuring exercise in the Indian arm of this global
change. Coca Cola recently announced its new corporate strategy called the “5 Pillar" strategy.
The company has identified the 5 pillars as

 People.
 Planet.
 Portfolio.
 Partners.
 Performance.

 DISTRIBUTION NETWORK
The Company has a strong and reliable distribution network. It has a distribution
network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000
distributors. The distribution fleet includes different modes of distribution, from 10
tonne to open bay three wheelers that can navigate the narrow alleyways of Indian cities
– constantly keep Coca-Cola brands available in every nook and corner of the Country’s
remotest areas.

 LOW COST OF OPERATIONS

In light of the company’s Affordability Strategy, Coca-Cola went about bringing a cost-focus
culture in the company. This included procurement Efficiencies – through focus on key input
materials, trade discipline and control and proactive tax management through tax incentives,
excise duty reduction and creating marketing companies. These measures have reduced the
costs of operations and increased profit margins.

14
  WEAKNESSES:

 HEALTH CARE ISSUES

In India, there exists a major controversy concerning pesticides and other harmful chemicals
in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment
(CSE), a non- governmental organization in New Delhi, said aerated waters produced by soft
drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola,
contained toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that can
contribute to cancer and a breakdown of the immune system.

 SMALL SCALE SECTOR RESERVATIONS

The Company’s operations are carried out on a small scale and due to Government
restrictions and ‘red-tapism’, the Company finds it very difficult to invest in technological
advancements and achieve economies of scale.

 OPPORTUNITIES:
 LARGE DOMESTIC MARKETS

The domestic market for the products of the Company is very high as compared to any other
soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market;
this includes a 42 per cent share of the cola market.
The company appointed 50,000 new outlets in the first two months of this year, as part of its
plans to cover one lakh outlets for the coming summer season and this also covered 3,500
new villages.

 EXPORT POTENTIAL

The Company can come up with new products which are not manufactured abroad, like
Maaza etc. and export them to foreign nations. It can come up with strategies to eliminate
apprehension from the minds of the people towards the Coke products produced in India so
that there will be a large exports and it will become an opportunity to widen future prospects
and cater to the global markets rather than just domestic market.

15
  THREATS:

 IMPORTS
As India is developing at a fast pace, the per capita income has increased over the years and a
majority of the people are educated, the export levels have gone high. People understand
trade to a large extent and the demand for foreign goods has increased over the years.
If consumers shift onto imported beverages rather than have beverages manufactured within
the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting
the sales of the Company.

 TAX & REGULATORY SECTOR

The tax system in India is accompanied by a variety of regulations at each stage on the
consequence from production to consumption. When a license is issued, the production
capacity is mentioned on the license and every time the production capacity needs to be
increased, the license poses a problem. Renewing or updating a license every now and then is
difficult. Therefore, this can limit the growth of the Company and pose problems.

 SLOWDOWN IN RURAL DEMAND

The rural market may be alluring but it is not without its problems: Low per capita disposable
incomes that is half the urban disposable income; large number of daily wage earners, acute
dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and
festivals and special occasions; poor roads; power problems; and inaccessibility to
conventional advertising media

16
4.3 BCG GROWTH MATRIX ANALYSIS:

The BCG matrix approach is based on the product life cycle concepts which can be utilized to
identify what priorities should be given in the product portfolio of a business level.

To make sure that the company is creating long-term value, an industry should have a
portfolio of products which contains both high-growth products in need of cash inputs as well
as low-growth products which establishes a lot of profit or cash. BCG matrix relies on 2
dimensions: market growth and market share.

The basic notion behind it is that the higher the market share of a specific product has or the
faster the product’s marketability grows, the better it is for the industry. Placing appropriate
products in the BCG matrix, results in 4 categories, in the business portfolio of an industry.
The four categories include the

Stars, cash cows, dogs, question marks

17
STARS:
HIGH GROWTH, HIGH MARKET SHARE

•Stars are leaders in business.

•They require heavy investment to maintain its large market share.

•It leads to a large amount of cash consumption and cash generation.

•Attempts should be made to hold the market share otherwise the star will become a cash
cow.

-The star products of Coca-Cola are Thumbs up, Maaza, Kindley.

CASH COWS:
LOW GROWTH, HIGH MARKET SHARE

•They are foundation of the company and often the stars of yesterday.

•They generate more cash than required.

•They extract the profits by investing as little cash as possible.

•They are located in an industry that is mature, not growing or declining.

-The products which are Cash cows are Limca, Coca COLA.

QUESTION MARKS:

HIGH GROWTH, LOW MARKET SHARE

•Most businesses start of as question marks.

•They will absorb great amounts of cash if the market share remains unchanged

•Question marks have potential to become star and eventually cash cow but can also become
a dog.

•Investments should be high for question marks.

The question marked products of Coca-Cola are Fanta, Sprite.

18
DOGS:

LOW GROWTH, LOW MARKET SHARE

•Dogs are the cash traps

•Dogs do not have potential to bring in much cash.

•Business is situated at a declining stage.

- The products which are at Dogs are Diet Coke, Minute maid

19
4.4 THE 7S FRAMEWORK OF COCA COLA:

The 7S framework courtesy of the McKinsey consulting firm will help you to do this well.
The 7S framework stands for:

 Structure: globally standardized job structure, decentralized

 Systems: latest technology
 Skills: skilled labours, Highly professional employees
 Style: Cultural diversified employees,
 Staff: decentralized, Majorly handled by Top management
 Shared Values:
 Strategy: long term goals,

A) SHARED VALUES:

Following are the shared values of the Coca Cola Company:

 Leadership

 Passion

 Integrity

 Accountability

 Collaboration

 Innovation

Quality Coca Cola knows what its shared values are and the importance of these shared
values in the growth of the company.
20
B) STRATEGY:

 Coca Cola is the largest manufacturer of beverages in the world and is offering almost
3500 beverages in more than 200 countries. The business strategy of Coca Cola is to
increase its sale volume, market price per share and to add to the economy of every
country in which it is operating. The main strategy of Coca Cola Company is to hire
skilled
 BUSINESS STRATEGY - The Coca-Cola Company’s business-level strategy is one
of differentiation. The previous example of consumers preferring identical beverages
just because the Coke brand name was attached. They have been successful pursuing
differentiation because the focus of the company has always been on marketing. The
Coca-Cola Company is “known for innovative marketing that constantly promotes
their brand names and protects their domains from competitors.

C) STRUCTURE

The corporate structure of Coca Cola is divided into 6 operating segments. The first five are
referred to as SBU (Strategic Business Unit), which is the base of the company’s financial
reporting system. The flow of communication is from front line workers to top level workers.
The chief operating officer of each strategic business unit reports to the Chief Executive
Officer and the Chairman of the Board of Directors who is E. Neville Isdell.

D) STYLE:

Style means the way an organization is leaded. The top managers of the Coca Cola Company
have set four codes of social responsibility by which they lead the company.
The codes are:

 Providing quality in the marketplace.

 Enrichment of place of work
 Preserving the environment
 Strengthen the community

21
E) SYSTEMS:

The system of Coca Cola is more effective in the present as it was in the past. The current
system is working for customers, suppliers, shareholders, and for every one that has some
interest in the company.

F) STAFF:

Staff plays as important role in the growth of the firm as a manager. According to the Coca
Cola Company, its employees are the core and soul of the company who fully devotes
themselves to make Coca Cola a distinctive part of people’s lives all around the globe. The
fine staff of Coca Cola is the main reason due to which it had survived over the last 120 years
and has won the hearts of many consumers. The staff of Coca Cola has led the success of the
company by working with full passion and devotion so that to refresh every single consumer
who buys the products of the Coca Cola Company.

G) SKILL:

Skills include both the individual and institutional skills that are important for the growth of
Coca Cola. Due to globalization the acquisition of skills has been made easy and the
company can hire key players of the world to work for it. Coca Cola has hired many workers
from all around the globe and all the workers are highly trained and got necessary skills that
are needed for the growth of Coca Cola Company.

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4.5 ANSOFF MATRIX:

Market Penetration: (EXISTING Market, EXISTING Product)

This strategy involves an attempt to increase market share within existing industries, either by
selling more product to established customers or by finding new customers within these
markets – typically by adapting the ‘Promotion’ element of the Marketing Mix. Due to the
incredible strength of Coca-Cola’s brand, the company has been able to utilise market
penetration on an annual basis by creating an association between Coca-Cola and Christmas,
such as through the infamous Coca-Cola Christmas advert, which has helped boost sales
during the festive period.

Product Development: (EXISTING Market, NEW Product)

This involves developing new products for existing markets by thinking about how new
products can meet customer needs more closely and outperform competitors. A prime
example of this was the launch of Cherry Coke in 1985 – Coca-Cola’s first extension beyond
its original recipe – and a strategy prompted by small-scale competitors who had identified a
profitable opportunity to add cherry-flavoured syrup to Coca-Cola and resell it. The company
has since gone on to successfully launch other flavoured variants including lime, lemon and
vanilla.

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Market Development: (New Market, Existing Product)
Coca-Cola started its journey in USA. It now operates in almost every country in the world.
This is an example of geographical market development. Coca-Cola had a successful launch
of Vanilla Coke in USA. The company then decided to launch it in the UK.

Unrelated Diversification: (NEW Market, NEW Product)

Finally, unrelated diversification entails entry into a new industry that lacks important
similarities with the company’s existing markets. Coca-Cola generally avoids risky
adventures into unknown territories and can instead utilise its brand strength to continue
growing within the drinks industry. That said, Coca-Cola offers official merchandise from
pens and glasses to fridges, therefore exploiting its strong brand advocacy through this
strategy.

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5. RESEARCH METHODOLOGY:

5.1 Objectives of Study:

 To study the Beverage Industry in India.
 To study the HR Practices in Coca Cola.

5.2. Scope of the study:

It helps in giving job satisfaction to the customers and its employees as well. With the help of
proper recruitment and promotion strategy the company has relevant and wider scope.

5.3 Limitation of the study:

Although I made all possible efforts to obtaining information required for the study from
secondary sources, but there are some limitation such as:
 As because of less I can’t do internship in this company

5.4 Methodology:
In order to achieve the above mentioned objective and finish the study to perfection I have
made use of secondary sources of data collection. The secondary sources were data is collected
from websites, college library, and Literature review of others peoples.

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5.5 Literature Review:
Mukesh Dhunna, “An Analysis of Consumer Behaviour: A Case study of Soft Drinks”,
Indian Journal of Marketing, Vol.XIV, 1984, pp.26-28, in his article he aimed at
determining the prevalent attitudes of consumers towards soft drinks. Taking a sample of 150
consumer, he showed how factors like age, profession, sere and income affect attitudes in the
purchase of the products his finding were as follows: Campa Cola a pure soft drinks product,
was found to be highly popular among the consumers. The second position was held by
Thumps up, 11 the third by Limca and the fourth by gold spot. Regarding the consumption
pattern of consumers, it was found that 54 percent of the respondents were in the habit of
taking soft drinks in summer only. Taste and the respondents interest in the product’s
advertisements, were found to ply the most important role in the purchase - decision. It was
also found that about 70 percent of the respondents changed their brand quite often.

Lawrance, “Effective Publicity How to Reach the Public People”, P.42 (1984)
In her study she explained about how effectively Coca Cola reach the rural people through
Mouth publicity. This results in raising the market positioning of coca cola in rural areas.
By doing proper positioning Coca Cola attracts the consumer minds and manage to generate
high revenue. Coca Cola beat Pepsi (7Up) by building strong brand image & customer
relation with rural people.

Tepper, J., and Amy, C. Trail Journal of Food Science and Technology, 15, Sept 1998.
“Consumer Acceptance of Coco-cola Drinks in Rural Area (Taste (or) health)” concluded
that the relative contributions of taste and health considerations on consumer liking and
purchase intent of Coco-cola drinks. Eight types of commercial Coco-cola drinks were
evaluated by 305 adult consumers who also completed brief questionnaire on food habits.
These variable emerged as the first factor in the analysis, suggesting that consumers perceive
these characteristics as being most important in their choice of Coco-cola drinks. The second
factor described a health dimension and was related to respondent’s attitudes towards fat in
the diet. The factory three comprised two remaining sensory attributes (colour and
crunchiness) which apparently were of minor importance to the respondents.
In this study Tepper explains about how consumer accepted soft drinks in rural areas.
Coca Cola Company succeed to convince the consumer about the content, relative
contributions of taste and health, and consumer preference. Eight types of commercial Coco-

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cola drinks were evaluated by 305 adult consumers who also completed brief questionnaire
on food habits.

Nirmala Devi S., “Brand Management”, Indian Journal of Marketing, Vol.3 (11-12),
pp.10-13, 2001. She says that Coca Cola is the lead brand of soft drink preferred by the rural
people which accounted followed by Miranda, 7-up, Fanta, coke, slice, sprite, limca,
Goldspot etc., More females preferred Fanta followed by slice and maximum males preferred
Pepsi followed by Miranda in the study of rural area. The source of Brand Awareness of soft
drinks is the prominent factor in the rural area such as word of mouth, advertisement, retailer,
point of purchase, sales promotion etc. sales promotion was considered as the least factor
among the source of brand awareness. Brand awareness leads to preference and brand equity
is the intrinsic value to the corporate.

Lars Lien, “Consumption of Soft Drinks and Hyperactivity, Mental Distress and
Conduct Problems. Among Adolescents in Oslo-American Journal of Public Health”,
Vol.96, P.10, October 2006.
Lars Lien (2006)59 in this study on “consumption of soft drinks and hyper activity, mental
distress, and conduct problems among adolescents in Oslo, Norway” concluded that high
consumption level of sugar containing soft drinks were associated with mental health
problems among adolescents even after adjustment for possible confounders.

Coca cola conducted several studies on aiming at determining the prevalent attitudes of
consumers towards soft drinks. Coca Cola a pure soft drinks product, was found to be highly
popular among the consumers because of his carbon content. Not only in urban areas but how
effectively have Coca Cola reached the rural people through Mouth publicity. Nowadays,
Sales promotion was considered as the least factor among the source of brand awareness.
This results in raising the market positioning of coca cola in rural areas. Coca Cola beat Pepsi
(7Up) by building strong brand image & customer relation with rural people. Coca Cola
Company succeed to convince the consumer about the content, relative contributions of taste
and health, and consumer preference. The relative contributions of taste and health
considerations on consumer liking and purchase intent of Coco-cola drinks. It also concluded
that high consumption level of sugar containing soft drinks were associated with mental
health problems among adolescents.

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6. HR Practices in Coca- Cola Industry:

 JOB ANALYSIS AND DESIGNING:

Coca cola company HR department has its own job description and job analysis in which
they get the information about employees work activities, human behaviour, performance
standard, job context and human requirements and also other information related to this
conduct.

 PLANNING AND FORECASTING:

 Coca cola HR department makes sufficient planning for hiring new employees in the
future.
 HR department is involved in strategic planning.
 HR department forecast future employee demand.
 Forecast report is sent to regional head office for approval to start recruitment.

 RECRUITMENT PROCESS:
 Regional franchise have their own recruitment process once given go ahead to hire more
employees.
 The recruitment process is well established.
 Job advertisements are placed in newspapers, website, institutions and others
 The company carries both internal and external recruitment.

 SOURCES OF RECRUITMENT:
Internal Recruitment
 Promotion
 Departmental Exam
 Transfer
 Retirement
 Internal Advertisement
 Employee Recommendation

External Recruitment
 Management Consultant
 Employment Agencies
 Campus Recruitment
 News Paper Advertisement
 Internal Advertisement.

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 SELECTION:

 In coca cola for Selection there is HR department

 But they involve only in major hiring
 Mostly the labour and middle level management is hired by the plant authorities
 They follow the decentralization approach. The country Manager is responsible for all
matters.
 There is a proper selection process according to the international standards.

 EMPLOYMENT TESTS:

 Coca cola conduct various types of tests for different needs.

 First of all they conduct a aptitude test to check academic knowledge.
 They also conduct the work sample test for technical seats.
 The behavioural test comes at end. Conducted only for final candidates.
 A survey show that they conduct about 5 tests for one recruitment.
 Tests are conducted on both region and head quarter level.

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 TRAINING AND DEVELOPMENT:

 The company has a clear staffing and training policy that is followed throughout its
franchise.
 Coca Cola believes that education is powerful force in employee motivation.
 The company has helps people make their dreams true.
 It has innovative programs student books, place of study, scholarships.

 DEVELOPMENT & MENTORING PROGRAMS:

 Coca-Cola Company is creating a system of mentoring programs that include, one-on-
one mentoring, group mentoring and mentoring self-study tools.
 These programs promote trusting relationships for networking, coaching, career
counselling and life lessons.
 Mentoring increases the flow of information across organizational lines and encourages
diverse thinking and cross-functional learning.

 ATTENTION TO CULTURE:

 Coca Cola’s HR department pays close attention to local culture.

 Special training given to employees on local and international culture.
 New employees put under supervision of old employees.
 Working environment represent blend of different cultures.

 EMPLOYEE MOTIVATION:

 Motivated employees are important assets for a company.

 According to theories of motivation, monetary and non-monetary factors remain key in
motivating employees.
 Coca Cola focuses on both monetary and non-monetary factors.

 Performance Appraisal
 Appraisal of employees involves an assessment of employee performance
 Coca cola performs performance appraisal annually
 The company performance appraisal is internationally acclaimed and has three process.

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 COMPENSATION:

 The objective of company compensation is to improve performance of employees and

convey a message that the company is loyal to employees
 The company gives many compensation salary, bonus, medical pick and drop, gratuity
funds, social security etc

 WAGES:
 Research shows that monetary factors leads in motivating employees.
 Coca Cola provides smart wages to employees.
 Wages are competitive and satisfy employees.
 Most employees by the company are offered competitive wages alongside commissions.

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7. DATA ANALYSIS:

Recruitment methods are very important which concerning for selection and the job. The
coca cola company are keen to motivate and satisfy their employees to extent to get utilize
their best potentials for organizational purpose. In this report we used to study about the
process of recruitment and the factors which affect recruitment. The data analysis of Coca
Cola Company is done through giving several information and research methodology is
done by secondary data published. After critical evaluation of the process of recruitment
and selection methods were chosen and strategies were adopted in order to find the solution
of the choosing right candidate as mentioned in the process. Coke can extend their portfolio
in India by launching more brands. According to the survey conducted by International
firms, India old age people like less sweet Cola drinks. So for this Coca cola company
should think about bringing new diet flavours in the market to fulfil the local needs. They
should authorize their employees as per their job description. They must communicate their
own employees and give them the more incentives. The system must be decentralized.

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8. FINDING & SUGGESTION

Through the findings it clearly depicts that most of the employees in Coca Cola are
reasonably satisfied with their company and with the recruitment and selection practices
prevailing in the company; though there are few issues faced by them. Conclusions are made
regarding this research mentioning the solution for the limitations of this research. It also
states the implications and recommendations about this research. Coca Cola has enjoyed the
top spot for years and its brand value remained unbeatable by a great margin until recently
when Apple surpassed the brand value of Coca Cola to secure the top position. Coca Cola
will have to consider tweaking its strategies in order to save its current position and sustain its
competitive advantage. The two possible strategies that the company can adopt include
diversifying its product portfolio to include healthy snacks and other food items, and
introducing a healthy low-calorie sweetener for its products to address the health concerns of
its consumers without making a major shift in its brand image.

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 9. BIBILOGRAPHY:

 https://www.coursehero.com/file/p7n77cr/The-multimedia-campaign-Little-
Drops-of-Joy-is-aimed-at-raising-the-corporate/
 https://www.scribd.com/document/138253398/Rooy-Contemporary-
Assignment
 https://businessleadershipmanagement.wordpress.com/2013/06/11/the-7s-
framework/
 https://themarketingagenda.com/2015/03/28/coca-cola-ansoff-matrix/
 https://business.mapsofindia.com/food-industry/beverage/
 http://www.aurumequity.com/the-indian-beverage-market-story/
 https://www.reuters.com/article/india-fastfood-modi-health/food-drink-
giants-plot-fightback-as-india-looks-to-tighten-rules-idINKBN16N0UG
 https://www.livemint.com/Industry/nyCVXeL2ex9NZGWe3zxPsK/Beverage-
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 https://goutham.wordpress.com/2007/10/18/cola-wars-five-forces-
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 https://www.mindtools.com/pages/article/newSTR_91.html

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