Appendix Appendix a a ART alee aa se neve PO te ae ire ME ko rename kate tes Biperone!| oll [Acityatia Weccs | came | eau | Pease | score | cn | MEMOConclusion Working with such an organization on ground level gave a rich experience about the ground realities of beverage market. Understanding the organization and moulding the novice thoughts to their benefit is another experience. The ground level is as real and harsh side reveals at times, when talking to a buyer really turns into an argument. Many a times we had to deal with harsh people politely too, but diplomacy in that was @ learning. Understanding working culture and witnessing the change in ‘system during our work period inculcates high values of organization into us. ‘The study makes us conclude that, Coca-Cola has the biggest consumer market against any other beverage producing company. It is the number one brand just because people Jove it and those who love it, they love it by all means ie, brand loyality. It has a big market share because of demand and this is the why the bargaining power of suppliers is weak, And our consumers love it so much so that prices hardly matters for them, But specifically for the Hospitality segment we are yet to cover the gap and that can be done if we introduce more taste in juice segment. Working in association with Coca-Cola feels us very proud to be a part of such a lovable global brand.sponsors their sports events and other extra curriculum activities for getting market share. Gotting shelves Coca-Cola gets or purchase shelves in big departmental stores and display their products in those shelves in that style which show their product clearer and more attractive for the consumer. Eye Catching Position Salesman of the Coca-Cola company positions their freezers and their products: ‘eye-catching positions. Normally they keep their freezers near the entrance of the stores, C26 Indiethis scheme runs for the retailers in which they are offered more margins through discounting or for end consumers it is run ‘as Best Price offerings with lesser prices. 8) Impulse Generation: The activities under this heading involves activation of physical forms Glow Sign Boards, Flexes, Posters, Danglers and Flendges. C) RED Execution : it is done with one main big purpose of creating impulse. It promotes impulse branding. D) Events : events are organized like moving showcase trucks and sponsoring media events During our period of intemship we got involved with ‘Sprite UTC Scheme’ and ‘Event Sponsorship for charity event by Rani Breast Cancer Trust. Facilitating the Product by Infrastructure For providing the praduct in good manner, company has pravided infrastructure which includes: * Visi cooter + Freezers + Display racks ‘+ Free emply bottles and shells for battle Sale Promotion Coca-Cola Company also does sponsorships with different college and school's cafes and sponsors their sports events and other extra curriculum activities for getting market share. Normally they keep their freezers near the entrance of the stores. Sale Promotion Company also does sponsorships with different college and schoo''s cafes andChapter 15: PRMOTIONAL ACTIVITY Coca-Cola and its brands have made their mark in the market and people identify with our products very well. The main reason for this has been the aggressive media marketing across the country. Now every brand of Coca-Cola is strongly positioned into its target segment, with the help of advertising, which everytime features an icon or celebrity that helps cennecting the nation to the product. But on the smaller seale some more efforts have to be made to revive the brands in local areas, And also apart from these there are many more efforts that are made to maximize the profit of the organization, The ultimate objectives of our business strategy are: * To increase volume + Expand our share of worldwide nonalcoholic ready to drink beverages sale © Maximize our long-term cash flows * Create economic value added by improving economic profit. ‘These objectives are achieved through the help of promotional activities. The different types of tools used by KBL are as follows: A) UTC (Under the Crown) offers: there three types of schemes under this a, Money cash back offer: in this scheme consumers are offered cash according to the inscriptions under the er the retailers or end crown. b. Coding SMS : in this scheme either the retailers or the end consumers have to avail the sceme by SMSing the code mentioned under the crown. c. UTL(Under The Label) : in this scheme the offerings are mentioned under the labels of PET packagings, they can be either monecy cash back or coding SMS. CER IndiaROLE REVERSAL + Role of salesman reduced to deliveryman, ‘+ Market developer will not only have to do execution and open new account but they will have to generate orders as well . Thus market developer will also act as salesman, + Sales executive needs to act as mentor and conduct moming and evening meetings dally. Constructing pre-sale format would include: + Route Restructuring + Assigning Manpower + Building back end supportFEATURES. + APre-seller generates orders in advance after activating the outlet . He also communicates the scheme and promotional offer apart from carrying out his executing an outlet responsibility + Back-end activities like invoicing, delivering stocks, collecting cash & glass are carried out by others + Delivery vehicles are loaded as per the orders, leading to a very high capacity Utilization & negligible shortage of brands / pack to the retailer + Company gets control over retailers OBJECTIVE + Improved Execution + Reduced manpower through better utilization of MD resources + Increased vehicle utilization (90 % ) + Improved Market control The summer trainees were allocated the task to experience the pre-sale concept and we were assigned an area to conduct the pre-sale for Coca-Cola brands specially 200 mi packing, This activity was continues for four days, The designed order sheet is in appendixS, The anly canfiict we encountered with this activity was that retailers were reluctant to order anything else than 200m, This was so because they were trustingly dependable on route te sale. The litle experience with this activity suggests that sales will not be dependant only on salesman but would also uiilize the resources of markel developers.Chapter 14: ROUTE TO SALE vs. PRE-SALE Kandhari Beverages Pvt. Lid. has been following the system of Route ta Sale since the beginning. We never tried pre-sell to execution until Pepsi started its work on it, PRE-SELL METHODOLOGY A selling methodology consisting of two parts : + Order Generation + Delivering the Pre-sold order COMPARISON PRE - SELL + Works on a proper beat with a defined PUP + Pre-seller generates orders in advance + High capacity ullization of delivery vehicle + Company gets control aver retailers + High distributor ROL CONVENTIONAL + Salesman works without a proper PJP + Salesman generate orders and deliver goods at the same time + Low capacity utilization of delivery vehicle + Company's span of contral til distributor + Less distributor ROL+ If billing is so important, then the maintenance of billing records by an outlet should be rewarded with minor discounts, + Discounts should be made according to the sku's so that indirectly outlet is pushed to buy all the sku’'s, + Stock check should be regular so that, even if bills are not maintained the present stock should make up for it. We worked with the Market Research Executive on this issue and a discount plan sku wise was planned for org accounts, for the maintenance of the bills. ‘The random visits planned to these outlets were supposed be check on availability of stock, and the format designed to be racorded is in Appedix.Chapter 13: OPEN REVIVE GROUP (ORG ACC) Open Revive Group stands for those accounts which we suspect to be under the surveillance of ACNeilsen group, for the purpose of ranking under the RED activation standards. ORG accounts are taken Into much more consideration in terms of availability of all brands and visi purity and most importantly billing of every delivery, containing details of all sku’s detivery, so that all our brands comes into consideration while market review by ACNeilsen, ACNielsen is a global marketing research firm, with worldwide headquarters in New York City, One of ACNielsen’s best known creations is the Nielsen ratings, which measure television, radio and newspaper audiences in their respective media markets, ACNeilsen in context to coke, conduct execution to calculate market share and rank among its competitors. It makes a visit toils untold RED outlet and checks on every aspect of our standards. They check the bling records of that outlet and record the opening and closing stock, to evaluate the total sales monthly. This is the reason why bill execution in proper manner is required along with availability of all sku's in these outlets. Problems encountered with org accounts: + Maintenance of bill records is not an absolute activity. Though many outlets maintain it but this maintenance is required to be 100%. © The billing is sometimes not done properly, which means that many a times some sku's skips the billing. ‘The main concer for these accounts lies in appropriate billing plans, so thal we ‘should not have a back fall due to this negligence. Efferts made and more suggestions: C26 IndiaChapter 12: MARKET IMPACT TEAM This was an aggressive initiative to watch the market closely on all aspects, right from availability issues to visicooler problems, and to all kinds of complai issues. ‘The teams of three to four members were allotted areas where they were supposed to conduct RED and to laok for alll the discrepancies related to each and every outlet in the allotted area. Market Impact Team is an effective tool to identify all the flaws in system at ground level and it uses the human resource to the fullest. ‘This activity was conducted every Friday and Saturday of the week, so that the improvement on sector wise report can be conducted during the weekdays along with the sales activities, and then again the activity was conducted next week to watch out the effective improvements and stil left issues of concern, ‘The team was handed with a format, designed specially to record information for each and every outlet, along with a small feedback column, The main objective of this activity was to mainly seek out the availabilty issues for each of the sku’s in every outlet. ‘Steps taken during the execution of Market Impact Team: * GOLOM-K formation. * SGA position, capacity and up gradation. * 100% SKU presence. * Complaints (delivery, leakage, breakage and visi problem) identification of flaws. Educating retailers on certain issues of vist service. Each visit to the market for this task usually covers 30-35 outlets /two sectors for the maximum output, CER India* Sales reading © before sampling © onsampling © after sampling Sales reading was the most important parameter to evaluate the Sampling process. ‘The observations recorded in the designed format are in Appendix3, ‘Though the impact of sampling as stated by the retailers suggests that it was fruitful only for the purpose of brand name revival, the market stil shows sales increase on account of sampling, But the major confusion lies in, as for whether the Increase in sales was the result of sampling or the demand due to summers. ‘Thus the evaluation process needs to be enhanced for the next sampling process,was appointed with maximum two promoters who were made equipped with a promotional banner of coke, feedback forms, a coke t-shirt and chilled stock. ‘The promoters were strictly instructed to not to get involved in consuming ‘some other brand during promotions and were briefed an their conduct and approach towards a customer, There were many changes that were made during the execution of sampling to make the activity more effective The feedback form is shown in the Appendix3. Evaluating the Impact of Sampting Conducting the sample process is just not enough, its impact has to be checked and for this purpose visit was planned twice and a format was designed to ‘evaluate the impact statistically, Objectives of the evaluation visit: ‘+ Firstly the visit was planned to give a check on the execution of sampling as to © Ifthe communication of idea is successfully made by promoter or nat. © If there is no discrepancy in the complete usage of stock other than in sampling, © Ing manipulation was done en the feedback forms by the promoters, * Secondly to evaluate the impact of sampling on the sales. This sampling evaluation was carried out in nearly 30 outlets. The visit generally used to start with conversation with the promoters and then a short interview with the retailer according to the format designed. Few important parameters in this regard are as follows: © Footfall * Customer class = Duration of samplingChapter11: SAMPLING BY CCI Objective of Sampling The Sampling was conducted to promote Coca-Cola as @ symbol of joy and happiness while taken along with meals. Thus the motive of sampling was the promotion of idea “Food with Coke”. This sampling was conducted in Eating and Drinking Joints all over the Tricity. There were two way conduction process for this sampling to be mentioned, that I learned from this sampling. Both would be discussed sequentially. Sampling ‘The Sampling as mentioned above was conducted to promote the idea of combination of Coke with Meals. | was part of the sampling process ‘for the first day on contract basis and had an opportunity to read the consumer behavior for coke at ground level. | was appointed to conduct sampling at Pind Baluchi, After the customers were over with their meals with coke, a feedback process was also conducted, Few observations made during the process: About 90% of customers preferred having coke along with their meals, inrespective of all ages, + The feedback forms suggested thal coke has eamed loyal customers, as the consumers preferred coke over any other brand, though it was just about coke and no other brand, + The communication of idea, coke with meals, seemed to already exist in the present culture, the sampling process jusi made the idea mare physical. ‘+ The process can also be termed as, ‘revitalizing the brand image’ The amount of sampiing targeted was 5 cases per outlet per day. Earlier the sampling was done with 300m! coca-cola, but later it was switched to 200m! packing ‘The sampling was conducted for three days every weekend for 5 weeks. Every outletRelated to cooler: * Is Cooler in the Hot Spot Location? = Does it have all the products of Coca-Cola available? + Is the display of the Coca-Cola display of the products in a standard such as Sprite, Thums up, Maaza, Fanta and Limea®,) + Is coler working properly? Is the cooler pure? Related to Price Communication: \s there proper price display of the products? Related to product availability: All the brands should be present in the every distribution channel but main concern is that 300 ml should be present in the every channel and 600 m1 and 1.5 litters per bottles should be present in the Eating and. drinking, convenience and Grocery shop.Outlet Activation According to RED (Right Execution daily) RED (Right Execution Dail It means to maintain the visional according to a fix set of coke product which is known as GOLOJ+K, it means the set wil follow a particular brand order. Thums-Up will take first place after t.4.at sprite or Limca , Fanta, Maaza and water or soda will take this RED also take care of the S.G.A ( Sells Generating Assets) Activation - Activation means doing things in and around the coke outlet that triggers Consumption / Purchase of Coca-Cola Products. The important parts of activation are: + Placement of visicooler at Itot spot location Availability of the products. + Right location of display racers ‘+ Impactful Communication of price message The visicooler standards of all the channels: [tow Medium [Diamond i20chs i20cis i20cis Gold Fels facls cls ‘Silver cis Mcls irels [Bronze lice Box Ice Box lice Box ‘To measure the impact of Right Execution Daily (RED) a survey is done by A.C, Nielsen (a consultant) every month, A.C, Nielsen conducts a survey by visiting all the RED activated outlets and benchmarks it on the prescribed Merchandising standards of RED. To create the Red Report A.C. Nielsen asks a set of question from the retailers which are as follows:CONCEPT OF RED: Kandhari Beverages Private Limited, Under Eurasia Operating Group has been working on RED ie. Right Execution daily since 1993, Coca-Cola Company believes thal its success depends on their ability to connect with consumer by providing them with a wide variety of choices to meet their desire, needs and lifestyles choices. Company's success further depends on the ability of its people by execute REO effectively every day. Market Segmentation Under RED. Coca cola company's market can be segmented in RED along 3 lines- channel cluster, outlet volume and locality income. Number of shoppers or consumer in the given universe: Coca cole attract the population by executing the following activities. ‘© Bringing the cooler at the entrance * Fixing the standee, sign at the entrance. = Fiking the combo Board at the entrance, How coca induce for the incident? + By putting cooler in prime position, + By keeping the cooler pure & clean, * By doing Rack Display. ‘= By fixing combo Board. © By doing Table activation, * Counter Top Display.DIAMOND - Those outlets, which give an annual sale of mare than 800 crates of Coca ~ Cola products, are listed in this segment. GOLD- Those outlets, which give an annual sale of less than 200 crates of Coca - Cola produets, are listed in this segment. SILVER- Those outlets, which give an annual sale in between 200 to 499 crates of Coca - Cola products, are listed in this segment. BRONZE- Those outlets, which give an annual sale of less than 200 crates of Coca- this segment. Cola produets, are liste CHANNEL Eating & Drinking Grocery CUSTOMER WEIGHT CONSUMER KO VPO (Annual) phy cfs INCOME ESN DIAChapter 10: SEGMENTATION MODEL -- RED Outlet Structure of the Coca Cola in India The outlets can be classified as per three criteria: * Consumption Patiern » Volume Pattern Shoppers Profile SEGEMENT A)EaD 8) Convenience C) Grocery E&D:- Those cutlets where people visit to ear of drink are known and eating and drinking outlets. Such as Restaurants and Hotels, Dhabas. Convenience : — Convenience outlets ate those outlets where people visit regularly for various purposes like stationary shop, S.T.D — Booth, Betal Shop and general Store. Grocery : = Those outlets where people visit to purchase food grains and any of such things for future consumption are called as Grocery shops. Based on Volume Pattern According to the volume sale in the outlets the company has adopted a unique policy of categorizing the outlets in four differant segments such as:EXECUTIVE SUMMARY Kandhari Beverages in association with Coca-Cola Company has been manufacturing the Coca-Cola products since 1993, and since then the overall market share captured by the company in the area of Chandigarh is approximately 80%, and has been marketing the products to its own discretion. The company follows certain conventions to be carried out on a daily basis, which were constituted by ‘The Coca-Cola Company, Allanta’. These conventions are termed as RED norms meaning ‘Right Execution Daily’. The company also follows, executes and completely supports the promotional activities as enjoined or prescribed by Coca-Cola India Apart from norms assigned by CCI, the company as an individual executive identity, it caries out certain operations including customized research and implementation procedures which are formulated to full the mission and vision of the collaboration, The work of an emplayee in a beverage company increases many folds in the peak season i.e. summers, The availability of products, their visibility and to follow the segmentation model near to accuracy is the motive of these market research executions. Each and every activity is of equal importance, since they all are interconnected as a consequence. All the activities were carried out to fulfill the geal of maximization of profits via maximization of sales of our products. The explanation of all these activities is there henceforth, This report will also give insight ta the company's norms to maintain standards, the production process, their strategies to keep up with their retailers, company's approach towards the sales of SSD and most importantly this report will provide an ‘opportunity to know the psychographic needs of the retallers which in turn shows the company an avenue to create a good future plan.9.4.3: Implementations! Recommendations On the basis of market reading, following steps may be beneficial * Aspecial sales team to deal this kind a high profile hospitality segment. ‘* With people becoming health conscious, Maaza, pulpy orange and minute maid can be promoted in hotels and clubs by inciuding them in menu card. ‘+ Juices can be placed to small events like parties, gathering and kitty parties in hotels and clubs, + Shelf display can be there in bars, + Providing OYA to small scale hotels to convert them into a monopoly accounts can be helpful. Tetra packs should pushed more in hospitals as they are in more demand there, and then it can compete welll with the other juices in the market. «Kinley water naw should be pushed since packaged water price has increased, communication of idea the margin on Kinley is now more than on other brands. Since in this segment the preference can be changed over the visibility factor because, how does it matter what brand is consumed when thirst is high, ‘© Since the consumption of Coke brands are high in hospitality segment, we need not to concentrate highly on low consuming hotels, in fact focused should be more on capturing novice high consuming ends and maintaining strictly the present buyers. = Competing Real or Tropicana in the market might nat be possible until we have our own range of juices, Educating the hospitality segment that our association with them is not just as a provider, rather it’s a “Joint venture” where food and beverage should promoted as ‘one entity and results will be much more high than expectations.9.4.2: Gap Analysis: It is mentionable here that the removing minor flaws are very important to keep the retailers at our side. The general problems or specifically the gas between us and the retailers are: * Supply issues- many compiiant about the detays in delivery. ‘© Unavailability of required stock on the delivery trucks. + Bulk buying customers need to be provided with timely delivery. ‘+ Complaints about no replacement of non-consumable articles in delivery. ‘+ Compliant about no replacement of leakage/breakage, Large amount of visi problem in market not entertained. * Bulk customer's demands on some issues of fridges are not entertained timely. ‘= Somewhere giving of undue promises is a matter of concem too. ‘These flaws in the working system are may be due to ill-delegation of work on small levels, But we witnessed a greal change in the distribution system and the intemal system of the organization during the periad of internship, and many of the flaws were removed drastically by the end of this period. Another matter of concern, out of observation, is non co-ordination with national level of promotions, This is in reference to Minute Maid Pulpy Orange, Last year witnessed a wave of national level of media promotions on large scale, but the domestic availability was poor, which was one reason that many still don't know the taste of this product And the vice versa for Nimbu Fresh for the current season, the domestic ground is nearly flooded but no media promotions at large scale. ‘The csd products have been placed quite well this season, and are flooded quite well in the market of Chandigarh, with all activation processes being executed timely. CR India9.4: Q2 Analysis In this section the view on the output of analysis will be mentioned along with the areas of concern and potentialities. 9.4.4; Trend Analysis The current trends below states the present situation in the target sagment specifying on some products, A) Hospitals and Canteens * Coca-Cola's esd products have high sales due to high demand. * Maaza share is being eaten up by local brands providing high margin to retailers. + Tetra packs are in quite demand in this segment + Kinley share is also eaten up by local ones due to the reason of margin and also Bisleri being proffered due to brand name establishment B) Hotels and Clubs ‘= Mango juices are not in demand for mocktaits. ‘+ Minute Maid Nimbu Fresh siill has not entered the lounges or bars. ‘= Csd's can be easily pushed because of a bartenders first choice in bars. « Pulpy Orange cannot be promoted in bars because af pulp.9.3: Some Specific Observations Certain observations about the segments been scrutinized is necessary be pointed out at this juncture, Hospitals ‘Our consumers in hospitals can never be rated as loyal customers because the volume of people consuming the products is highly variable, Therefore, the visibility through availability works better in this segment. And that of in Govt. Canteens are constant, but loyality factor Is immeasurable because as the job is of fixed time the choice of beverage being consumed depends on quite a few factors which are immeasurable. ‘Therefore in bath the cases visibility plays an important role. Hotels The consumer characteristic shows high level of inflexibility. In this segment, the consumers have firm held preferences or priority aver brand due to the affluent nature of consumers, Especially in the bar er lounge segment, the taste factor or even the recipe factor is a big parameter of consideration, While the Club segment is stil of flexible nature.9.2.8: Coke and Consumer Category 3 Category? - consumers who ‘can't live without coke" Category2 - consumers who ‘can survive if nothing better is available’. Category3 - consumers to whom ‘it hardly makes a difference’. ‘The graph depicts that to maximum in sample size product loyality hardly matters while to some, they are simply loyal about il, such that their feedback is positive in every aspect. The questionnaire conducted is of significance, in order that the feedback for the Minute Maid gives a quite clear picture about its current image, The result for Kinley was as expected, because Bisleri is the most prominent in the domestic market of Chandigarh.id Nimbu Fresh 2% 4 35 mmNot Good Average 10 4 Very Goad o Mave Tasted Not Tasted ‘The graph depicts many out of the sample size have not tasted the product yet. And the one who have tasted, maximum found it either very good or average. 9.2.7; Preference in Water Brands. 33 sm Packaging ePrice Grand name Taste Bisleri—Aquafina Kinley Fresh Himalaya Qua Coot ‘The graph clearly projects the strong branding of Bisleri in the domestic market of Chandigarh. Next to it stands Kinley, largely preferred because of brand name. it would a challenging task to have a share fight with Bisleri.9.2.4; Proference in Mango Drinks 25 7 20 T - 15 + Packaging aie sl = Brand Name js Taste 0! Frooti slice Maaza Jumpin resh The consumption of Mango drink is one of the most vibratious markets in beverage market, Nationally Frooti, Maaza and Slice are few of the oldest brands. The graph depicts the choice of Maaza to be more than over other brands, 9.2.5: Opinion on Minute Maid Pulpy Orange 40 35 2 25 m Not Good 20 waverage 15 =Go0d 20 Very good Have Tasted Not Tasted ‘The graph depicts that many among the sample size have tasted the product and maximum of them found it vary good and good. The orange drink market is not so flourished as that of mango drink market, so probably pulpy orange is also one of its ‘own kind in the market,9.2.2: Regular Consumption aves =No Yes-61.5% No-38.5% ‘The graph shows the part of sample size who are regular consumers of coke and who are not. This projects that the consumers of coke are loyal to a great extent, 9.2.3; Awareness of other brands of Coca-Cola a ] 2 | Z = |= — & Yes-46.1% Partially-11.5% Few-21.2% No-19.2% ‘Though Coca-Cola stands as the world's most consumed and popular beverage producing company, people are still unaware of brands which lie under the roof of Coca-Cola, The graph shows the awareness frequency.9.2; End Consumer Questionnaire Analysis This questionnaire was conducted amongst youngsters who are beverage food freaks. It was a minor attempt to know their preferences and how they rank our products against our competitors. The questionnaire was more focused on Maaza, Minute Maid- Pulpy Orange & Nimbu Fresh and Kinley Water, because these brands are struggling in the target market. This is an attempt to relate the normal preferences of consumers mainly to the hospitality segment. The questionnaire format is in the Appendix. 9.2.4: Age Classification 16.18 wa above 21 ‘The Questionnaire was conducted among youngsters mainly in the age group of 16 years to 23 years, The reason was to know the positioning of brands in youth's mind. This will help us know the new age preferences, which would help us to plan out the approach to modemized outlets in the target segment of hospitality. The questionnaire was conducted among 62 people, CnC India Epa9.1.8: Market Occupancy in Hotels Sector Wise Sector 43 Sector 35, Sectar 22 ‘Though there are hotels in almost every part of Chandigarh, but the main luster lies in these sectors, While secior 35 and 22 consists of hotels which are 10-12 years old, while many have been reconstructed to new ones and the upcoming modemized hospitality segment lies in sector 43, The y-axis represents the number of hotels, These types of retail oullets are primarily dominated by Pepsi, but as seen earlier, Coke still give a tough fight in terms of increased consumption.8.1.7: Average ConsumptioniDay Hospitals & Canteens Consumption Pattern PC-21.05% KO- 78.9%. Hotels & Clubs Consumption Pattern mpc Ko We see thal even here, despite very good market occupancy in hospitality segment Coca-Cola still stands quite high against Pepsi, From this it can be clearly inferred that even an inch of step forward would help us take a tong leap in this segment.9.1.6: Visicooler Upgrade Hospitals & Canteens mc aKo cater Peaser SeaserIcaser AS easer Fountain Hotels & Clubs =Pc ako caer Fraser = Seaver, Tcaser Fountain In this reading Pepsi has an upper hand in SGA placement in the market of hospital canteens and hotels segment. Also the feedback from the retailers state that Coca-Cola's SGA placement policies are rigid. But improvements have been made to place SGA al a large scale into the market. The y-axis represents the number of visicoolers.Despite more occupancy of Pepsi in hospitality segment the Kinley seems to make a good consumption average, but has a big fight to the Bisieri and other local brands which seems to replace it in even those segments which is our monopoly account, 9.4.5: Consumption of Soda Brands Hotels & Clubs Consumption Pattern ut aks mEQILC LH-53.1% = _KS-17.2% EQILC-25% Soda market is present in hospitality segment and obviously not in hospital and canteens. Again here despite Pepsi prevalent in hospitality segment Kinley Soda stands as.a strong brand as a choice of soda consumers, Sill the threat of local brand is evident as Equal stands as a very good choice for low scale hotels because it gives better margin fight. Lehar and Equal holds a firm position in this market, but somehow Kinley Soda stands as a brand of elite choice.due to its range of different juices and the same is for Tropicana. The only reason why Real is more prevalent because of its earliest entry to the market which established the preference in tastes to Mocktails. Mango drinks do not have any place in hare. 8.1.4: Consumption of Water Brands Hospitals & Canteens Consumption Pattern =KW eaLate AQ-15% — KW-40% — BL&LC-45% Hotels & Clubs Consumption Pattern S- ve meLatc AQ-34.8% KW-46.6% BL&LC-18.18%‘The major threat to Maaza is Frooti and the local mango drink by Bisleri, They win over the situation due to better margins which they provide to retailers. Lemon Drink This segment is majorly Consumption Pattern ‘occupied by Nimbooz by 7up. with its sku of rab, tetra and pet. Nimbu Fresh is yet not so \ strong in this segment due to Nib , reese availability issues. 1 Nimbu Fresh UMN Though in whole market, lemon drinks do not hold more than 14% of market. Hotels & Clubs Consumption Pattern Tropicana = Mazza & Minute Maid Real Tropicana-34.6% Maaza & Minute Maid- 12.5% — Real- 63.8% The Hospitality segment is mainly captured by Real and Tropicana, The main reason why this market is dominated by Real is because of its wide use in Mocktailsis into consumption mainly. The tetra packagit ‘segment especially in the Hospitat segment. is widely needed to serve the juice 9.4.3: Consumption of Juice Brands Hospitals & Canteen Consumption Pattern Tropicana = Mango drink Rea ‘= Lemon deink Tropicana-22.2% Mango drink- 33.3% Real-25% Lemon Drink-19.44% This figure shows the occupancy of market by different juices. Next we shall depiet the dominance in consumption of brands in their particular segment of juices. ‘Mango Drink The market is almost into @ cut Consumtion Pattern throat situation with almost equal consumption rate ta each, including local brands too. ge wea aMam, Maaza still holds a good stand Jumpin | dU@ tO Consumption of its rab in até large scale in the hospital soo | segment,8.1.2: Consumption of Beverages in Form of Pack Sizes Hospitals & Canteens Consumption Pattern \ mre = 500mi Pet m2iePer Tetra mean Rgb-40.7% SOOm!-29.7% 2it-14.8% Cans-1.85% Tetra Pack- 9.26% Hotels & Clubs Consumption Pattern Reb 1m 500m! Pet walt Pet Canisters: Rgb-68.75% S500mI-6.25% 2it-20.8% Cans-4.17% The figures show the percent of a particular packaging prevalent in both the segment, In both the segment the highly consumed packaging of beverage products Is Rgb, But also it has to be taken into notice that in Hotels with consumption of more than 15 cases per day use largely the 2it packaging. Cans are served when diet coke9.4.4 Market Share Outlet Wise Hospitals & Canteens Market Share ako as PC-10% KO-53.33% S-36.66% Hotels & Clubs Market Share ‘ mpc =O ms PC-51.1% KO-40% S$-89% The above graph shows the outlets captured by Coca-Cola and Pepsi Co, and the percent of outlets which are shared by both of the beverage producing companies. In short the red and blue area shows the monopoly accounts of Coke and Pepsi respectively,8.4; Research Methodology In order to look deeply into as to what is the positioning of our products in consumer's mind, a direct interaction is a method to come to a conclusive view. The purpose of this report is to provide a roof-top view of © Retailer's perception * Consumer's perception = Competitor's analysis These three concepts will frame the “problem” accurately and as it is said thal ‘a problem weil defined is half solved’, As retailers are KBL's first consumer and first step into the market and it is very Necessary to keep a strict watch on all the networks to these retail outlets, ‘So the direct mathod adapted was to do In-depth interview of the retailers, demanding both qualitative and quaniitative data from them, which throws light not only on félailer’s perspective but also on the consumer's perception and a clear picture of ‘competitor's position against our market strategies. Since more focus is on the market of juices, water and sada, so it can be said that the major part was causal research for the above mentioned products. Moreover to watch the accurate position of the competitors in the market, there was no better source at ground level than these retailers, The questionnaire so designed was to extract information from retailers about their view of discrepancies in the system and what our end-consumers react to our products and to our competitor's product. Another questionnaire was conducted straight on with our end consumers to analyse their perception about our products and their preferences with reasons, So these two approaches provide a wide three-tier feedback siructure which will help the organization to identify and broom away the flaws as nicely as it can.8.2: Objective of this Report The main objective of this report is to evolve an increased change in the Sales of Coca-Cola Brands in Hotels, Clubs, Hospitals and Govt. canteens. The task would be mainly to graph out the psychology of the retailers who sell our SSD brands, Juices, Water and Soda. The first and foremost task is to identify the flaws in our service system to the retailers, which in tum hurts the sales of Coca-Cola products, «The next step involves identification of potential markets and recognition of Opportunities where the visibility and availability of our products can be increased. + The only task left atter identification of problems and opportunities is to frame strategies which will eliminate the flaws and take advantage of the opportunities. 8.3: Critical Literature Review ‘Thore has been a lot of fuss regarding the carbonated soft drinks and pesticide issues, despite all the demagnification the slowdown in the business is not evident father after a slowdown in 2007 it has gone drastically high in the current scenario. ‘The most important fact to be mentioned here that the report concentrates on the market segment of Hofels, Clubs, Hospitals and Eating & Drinking points in Govt. offices. Until now there is no such effort evident from references’ which have looked upon the hospitality segment in the domestic market of Chandigarh, The work clearly shows a lot of gap into this segment‘The main objective of this study lies in studying the market of the SSD (sparkling soft drinks) brands by Coca-Cola and understanding the consumers’ perception and opinion about the products, with more inclination towards the study on market of juices and Kinley water & soda, and the respective competitor's analysis. This report gives an insight to the current scenario of our products in Hotels, Clubs, Hospitals and Govt. canteens segment. This would be a direct attempt to point out the flaws prevailing this segment of market and possibly the better way to overcome them through detailed study of this segment, as is done in this project report. This is an opportunity to peep into the psychographic status of the people working in this segment and predict the possible way aut of non-dominance in this market. This report will provide detailed information about prevailing market competition and thus prepare itself to meet the market challenge by making adjustment in its new strategy and promotional activity, particularly for the Hospitality Segment. ‘The project begins with in-depth interview with the owner of retail outlets, as primary source, to extract the reality on ground level about ‘retailer's psychology’ as our distributor and ‘competitor's position and strategy’, The third need was to know the psychographic needs of our consumers, which was achieved by feedback/questionnaire process among 50 to 80 youngsters. The conclusion drawn from the quantitative and qualitative (2) analysis of data via graphs and open ended feedbacks, are represented in under the tag of gap analysisigrievances and implications/suggestions, CER IndiaChapter 8: THE PROJECT 8.1; Executive Summary Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886, Coca-Cola Company is the world’s leading manufacturer, marketer and distributor af non-alcohialic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob's Pharmacy and customers bought the drink for five cents al the soda fountain Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing’, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886. selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in india In the new liberalized and deregulated environment in 1993, Coca-Cola made its re- through one of its largest bottier, KBL, the North indian bottling arm of entry into In the Coca-Cola Company.Chapter7: FUTURE PLAN-A LOOK FROM PRESENT As we look ahead to the year 2020, we see tremendous growth opportunities for our franchise system and for the entire nonalcoholic ready-to-drink beverage industry, We are working closely with our bottling partners around the globe, leveraging our scale and the increased presence of our brands, We remain confident in our ability to deliver against our strategies while laying the foundation for consistent, profitable and sustainable long-term growth, inspired by our 2020 Vision in a growing world of refreshment.” flow. * Attract, engage and retain the best talent © Develop and deploy the world's innovative and effective marketing. * Aggressively increase the value of our portfolio. + Think and act like an integrated global enterprise while intensifying our local focus. Become a critical part of our customer's growth strategies. * Create competitive advantage by fulfilling our Live Positively commitments. Design and implement the mast effective and efficient business system. KBL’s future plan is just to track ways to strengthen their position in the market more firmly and not only ta strengthen old relations with a decade fong known retailers but also with the evolving novice in the market. Other areas of improvement include, effective planning of distribution system and acquiring a good work force i.e. strengthening bond with hard smart and hard working employees. The short term goals, as always, include the effective removal of breaking flaws between Coca-Cola and retailers. The main vision of KBL is to induce such a perfection in their market execution such that it converts its all outlets to RED accounts i.e. all 26,000 outlets to be under RED standards. + Maximise Company and bottler long-term cash mostbranding Limca Common drink. Fanta basically preferred by Ladies and Kids, Maaza is branded for mango lovers be it a kid a woman or a man. Sprite defines for the straight attitude of taday’s youth. Kinley Soda Mostly those who consume liquor Consultancy, recegnize Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2008. The Business Week- Interbred valued Coca-Cola at $67,000 million in 2008. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million; The Company's strong brand value facilitates customer recall and allows Coca-Cola to penetrate markets. However, the company is threatened by intense competition which could have an adverse impact on the company's market share. SWOT Analysis Strengths Weaknesses. Internal = Popularity + Word of mouth © well known * lack of popularity of many * branding obvious and easily Coca-Cola's brands recognized * Most unknown and rarely seen * Alot offinance * result of low profile or non- + customer loyalty existent advertising * International Trade + health issues Threats Opportunities External «changing health- * many successful brands to consciousness attitude pursue * legal issues * advertise its fess popular * Health ministers products + competition (Pepsi) * buy out competition + More Brand recognition6.3: Industrial Environment and 5 Forces Model for Coca-Cola Applying Porter's 5 forces allows the garnering a retrospective view of the potential attractiveness in terms of profitability of the company. Analyzing the beverage industry will also allow a more accurate outlook on its potential, 6.4: COCA-COLA COMPANY- THE SWOT ANALYSIS ‘The Coca-Cola Company (Caca-Cola) is a leading manufacturer, distributor and marketer of Non-alcoholic beverage concentrates and syrups, in the world. Coca- Cola has a strong brand name and brand portfolio. Business-Week and Inter brand, apresenting their signature drink as a de been repeated for over the last 100 years selling Coke all over the world. Through its jaus and refreshing formula, This slogan has intense marketing campaigns, Coke has developed an image that is reflected in what we think of when we buy Coke and what we associate with drinking Coke. This image has been subconsciously installed in our brain by the advertising campaigns that show Coca-Cola associated with “good times.” Innovation Coca-Cola has been able to survive and grow in an ever-changing market because of its ability to systematically innovate and deliver new products, In the late ‘90s the company, typically showing earnings growth of 15-20% per year, tumed in three straight years of falling profits. It was apparent that the market was changing and in order to keep up with these changes, Coca-Cola had to move from a single core product to a total beverage company, This was a major change because their past success was base on having one successful core product, Coca-Cola began to employ a strategy referred to as “play to win innovation.” The company began ‘operating in a decentralized environment that was unfeasible in previous years. Now Coca: Cola offers nearly 400 different products in and is still dominating the beverage industry. This is made possible by the company's ability to innovate and adapt to ‘changing markets, Globalization. Taday's big business takes place an a global scale, and Coca-Cola is no exception. Technology is continually changing business, and these constant changes have been making it more feasible and profitable for businesses to expand their operations globally in order to serve all different types of diverse markets around the world. This global view is reflected in Coke's recent ‘I'd like to teach the world to sing” commercial. Coca-Cola is taking advantage of the large revenue opportunities made possible by participating in a global market and now offers products in 200 countries around the world,And they have a good sale in the market because according ta the expert which product seen more in the market that sells more."Seen as sold” They do agreements with a shop keepers and stores to exclusive sale in those stores. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stares and offers them free samples and free bottles and some time cash incentives. Advertisement Strategies: Coca-Cola Company use different mediums for advertisement. + Print media : They often use print media for advertisement. They have a separate department for print media. + TV commercial ; As everybody know that TV is a mast common entertaining medium 80 TV commercials is one of the most attractive way of doing advertisement. So Caca- ‘Cola Company does regular TV commercials on different channels. * Billboards and holding; 6.2: Our Competitive strategies The Coca-Cola Company is one of the largest, most successful and most, widely recognized corporations in existence. Coca-Cola is a dominating force in the beverage industry and sets.a very high standard of competition. Research shows that its trademark is recognized by over 84% of the world's population. There are many factors contributing to Coca-Cola's success, however, we believe that their key ‘success factors are Marketing, Innovation, and Globalization. Marketing: Coca-Cola is seen as one of the founding fathers of the modern day marketing model, They were among the pioneers of advertising techniques and styles used to capture an audience. They were also one of the first companies to offer a gimmick with their product, this being a mini yo-yo. It was around 1900 when Coca-Cola beganChapter 6: STRATEGIC MANAGEMENT BY COCA-COLA 6.1: Strategies POSITIONING STRATEGY It means that you try to give image to your product in the mind of the customers. To give a true and positive picture of the product is the best positioning, The company should promate its good points or comparative advantage which it has over its competitor. DIFFERENTIATION STRATEGY Invorder to serve your target market you introduce different things to your product so that your product can be differentiated from other products, Basis of Differentiation There are many bases on which a product can be differentiated but Coke has differentiated its product on the following base: * Product Difierentiation- Coke differentiate its product from its ‘competitors on the basis of brand, quality and taste. * Image Differertiation- Logo is used for image differentiation, Logo is what establishes a brand name in the consumer mind. It is the brands identification, signature and image. Coca-Cola has kept on changing its logo from time to time, PROMOTION STRATEGIES Price Strategy Trade Promotion’ Coca-Cola Company gives incentives to middle men or retailers in a way that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that’s why Coca-Cola seen more in the marketRevenue Growth Year Earnings pe feet Year Revenue eoos $30.990 billion feova pee? billion = 007 $5,981 billion sa pr somone | ene 524.088 billion | one fee billion | Gash Flow Growth Over the past 3 years, Coca Gola has had a Sah Roe respectable 8.7% in annual revenue growth. Year pone pees billion Coke has enjoyed nearly 11% annual pe stars billion eamings growth over the past three years. ia Fr 150 billion fae {$5.957 billion 7] The most recent year, from 2008 to 2008, saw a 19% increase. Analysts predict 11.4% EPS growth in 2010 and 9.6% EPS growth in 2011. Dividend Grawth Annually, that's h flow growth rate of over — so ee ee eae eS Year | Dividend | Yield 11%, Coke has grown stock dividends by 9.7% over the past three years. The most recent 2009 fe 64 3.28% | increase, from 2009 to 2010, was a 7.3% \__} __|__| ingrease. The payout ratio isa moderate 56%, so 7°08 e 2 oer the dividend is safe for a while and has room to 3997 «$1.36. ~CO«O grow. The company has also been repurchasing | shares annually. In 2009, they repurchased $1.5 2006 re 24 2.80% billion worth of shares. CnC India EpaFinancial Highlights ‘+ First quarter 2010 reported net revenues increased 5%. Net revenues increased 1% on @ comparable currency neutral basis, reflecting a 2% impact due to the decansolidation of certain entities required by a change in accounting guidance, as wall as geographic mix. ‘+ First quarter 2010 reported operating income increased 17%, and comparable ued currency neutral operating income increased 9%. This was driven by a co strong focus on cost management and the leveraging of productivity initiatives as well as favorable timing of selling, general and administrative expenses. = Cash from operations in the quarter increased 52% to $1.3 billion. There were no share repurchases during the first quarter due to the pending Coca-Cola Enterprises (CCE) transaction. During the quarter, the Company announced its 48th consecutive annual dividend increase, raising the quarterly dividend 7% from 41 cents to 44 cents per common share. This is equivalent to an annual dividend of $1.76 per share, up from $1.64 per share in 2009. The PER CAPITA CONSUMPTION of Coca-Cola Beverage Products INDIA CHINA, RUSSIA Mexico Figures are in LitresChapter 5: FINANCIAL ANALYSIS OF COCA-COLA atest Full Context Quarter Ending Date (2010/03) Gross Profit Margin | Pre-Tax Profit Margin | Interest Coverage | Current Ratio 68.8% 29.7% 27.0 13 ‘Quick Ratio Receivables Asset Turnover Return on Tumover Capital ae or Invested Capit 92 (24.2% ‘Most Recent Data Total Debt/ Equity Retum on Assets | 5-Year Averages Return on invested Capital 0.47 14.5% Return on Equity " 25.1% 28.5% Gross Profit Margin Net Profit Margin: Current P/E Ratio | 5-Year High P/E ‘otal Of tions | Ratio. 68.5% a Pera d 16.9 a 20.6% 26.3 S-Year Avg. P/E | 12 Month Normalized Ratio PIE Ratio 20.7 16.6Company and the products of the: Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Puipy Orange. Parle Agro —— . " Godrej and Bisleri: On local levels these three pose a great threat to our products. Parle’s Frooti, Gadrej's Jumpin, and Bisleri's Water and Taaza maaza are hampering the sales of Coca-Cola's products on the margins. The competitors to KBL are those who are competitors to Coca-Cola, and not any other franchise of our competitors, Rival Pepsi's biggest bottler in Punjab is the Chandigarh-based Dhillon Kool Drinks and Beverages Ltd.4.9; Competitors to KBL The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks. The key competitors in the industry are as follows: . S PEPSICO; the Pepsico challenge, to keep up with archrival, the Coca-Cola Company never ends for the World's # 2, carbonated soft-drink maker. The company’s soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company’s only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to Pepsi. Dp as it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst : Nestle does not give that tough a competition to Coca-Cola quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people. ae a : Dabur in India, is one of the most trusted brands as it has been operating ever since times and people have laid all their trust in the CER IndiaBoond Boond (Main Vishwaasl.... \ ‘ 4) Water, a thirst quencher that refreshes, a life giving force that washes away all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very substance of life, a celebration of life itself. The importance of water can never be understood. Particularly in a nation such as India where water governs the lives of millions, be it as a part of everyday riluals oF as the monsoon which gives life to the sub-continent. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with the assurance of safety from the Coca-Cola company. That is why we introduced Kinley with reverse-osmosis aling with the latest technology to ensure the purity of our product. That's why we 90 through rigorous testing procedure at each and every location where Kinley is produced, Because we believe that right to pure, safe drinking water is fundamental. A universal need, that cannot be left to chance.Mango. It is a fruit associated with good times like no other. Apily called the king of fruits, mangoes are to mango lovers. what romance is to a Casanova. Now imagine this delicious fruit, bottied. This is what Maaza all about, Introduced in the late 1970's, Maaza has today come o symbolize the very spirit of mangoes. Universally loved for its taste, colour,thickness and wholesome properties, Maaza is the mango lover's first choice. Maaza‘s universal appeal was responsible for the brand being recognized as a drink that provides ‘wholesome family fun’. Even today people hum the memorable lines-"taaza mango, maaza mango’ and ‘bolal main aam maaza hai naan’ Maaza was realiswed to be about the ultimate mango indulgence. And this. was because; only the freshest, juiciest Alphonso mangoes go into a Maza. This thought found voice creativity in the idea of ‘Tempting the mango expert’. This idea struck a chord with everyone and found a universal appeal. It was to nobody's surprise then that Maaza soon became the most loved beverage rand in India. ‘Today maaza has come a long way to stand as the ideal way to satisfy one’s craving for mangoes. Aptly framed, the line “Maaza lao, aam ki pyaas bujhiao™ symbolizes the very essence of mangoes that has been captured in a botite. It provides consumers the most authentic experience of rich, juicy mangoes to satisfy their thirst for mangoes- anytime, anywhere!Drink in the Cloudy temion Segment, The success formula is the sharp fizz and lemioni bite combined with the single minded proposition of the brand as the provider of “Freshness”. Limea’s Freshness is like no other- ‘ime n lemoni’ Limca refreshness, reenergizes, rajunevates not just your body but also your emotions. The new Limca campaign takes the first step towards taking the earlier “water-like freshness" idea to sn emotional platform relevant for the young-adult, who pursue success and achievement, but stil want freshness to rejuvenate the fun, energy, excitement and romance in their lives. “Freshness of Emotions” idea stemmed from the insight about our consumer- the desire to rejuvenate her/his emotions which are constantly being dulled in routine pursuit of success. Minute Maid- A 62 year success story. The history of the Minute Maid brand goes as far as back as 1845 when the Florida Foods Corporation developed orange juice powder. The company developed @ process thal eliminates 80% of the water in orange juice, forming a frozen concentrate 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 to the first ever orange juice from concentrate. CBC India EinsInternationally, Fanta the ‘orange’ drink of The Coca-Cola Company, is seen as one of the favourite drinks since 1940's, Fanta entered Indian market in the year 1993, Over the years Fanta has occupied a strong market place and identified as ‘The Fun Catalyst’. Pereaived a8 a fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifis feelings but also helps free spirit thus encouraging one fo indulge in the moment. This positive imagery is associated with happy, cheerful and special time with friends. Eo Lime ‘n' Lemoni Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from ‘Nimbu’ +Vaisa’ hence LimeSa, Limca has lived up to its promise of refreshment and has been the original thirst choice of millions of consumers for 3 decades. Born in 1971, Limca has remained unchallenged as the No.1 Sparkling C268 IndieStrong Cola Taste, Macha Personality, Thums Up is a leading sparkling soft drink and most trusted brand in India, Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993, Thums Up is known fer its strong, fizzy taste and its confident, mature and uniquely masculine attitude, This brand clearly seeks to separate the men from boys. Worldwide Sprite is ranked as the No.4 soft drink & is sold in more than 190 countries. in india, Sprite was launched in the year 1999 & today it has grown to be one of the fastest growing soft drinks, leading the Clear lime category, Today Sprite is perceived as a youth icon, Why? With a strong appeal te the youth, Sprite has stood for straight forward and honest attitude. its clear crisp refreshing taste encourages the today’s youth to trust their instincts, influence them to be true to who they are and to obey their thirst.open happiness... a The world’s favourite drink, The world's most valuable brand, The most recognizable word across the world after OK. Coca-Cola has a remarkable heritage. From a humble beginning in 1886, its now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic beverages in the world. Coca-Cola retumed to India in 192 and over the past fourteen years has enthralled consumers in India by connecting with passions of India- cricket, movies, music and food. Coca-Cola has been very strongly associated with cricket, sponsoring the world cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late 90's. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life Ho To Aisi were very popular and had entered the youth's vocabulary. In 2002, Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky-rocketed the brand to make it India’s favourite soft-drink brand. In 2003, Coke was made available for just Rs.5 across the country and this pricing initiative together with enhanced distribution ensured that all brands in the portfolio grew exponentially. Coca-Cola had signed on various celebrities inciuding movie stars such as Karishma Kapoor, Cricketer such as Srinath, Souray Ganguly, southern celebrities like Vijay in the past and today, its brand ambassador is Amir Khan. ovr]4.8; Products and Packaging Details Though the Coca-Cola Company owns the innovation of 3,300 drinks including beverages, tea and coffee, fresh juices, packaged water and energy drinks but, all of them ate not dominant at every place, may be due to cultural, geographic, demographic. production and demand limitations. Kandhari Beverages Pvt. Lid. In association with The Coca-Cola Company manufactures the following mentioned brands and in mentioned packagings.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. = 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 eamers, 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. All these problems might lead to'a slowdown in the demand for the company’s products.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 chlorpyritos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola preducts fram India. + IMPORT FROM OTHER MANUFACTURERS: import of few particular Packaging’s from other manufacturers ads @ cost to the business, like importing of cans from Pune and water from Delhi ete. But this prablem will be soon removed with the establishment of new bottling fine in Saha, 4.7.3: 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. Other products account for 16 per cent market share, chiefly led by Limca. * HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods af their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales. 4.7.4: 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4.7: SWOT Analysis of KBL 4.7.4: Strengths * DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has @ distribution network consisting of a number of efficient salesmen, 26,000 retail outlets. The distribution fleet includes different modes of distribution, from contracted transportation for goods carrying task of 10- tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked three-wheelers., + STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company, Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survay by consultancy Interbrand. It was estimated that the Coca-Cola brand was worth $70.48bilion, + LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs. 4.7.2: Weaknesses * LOW EXPORT LEVELS: The brands produced by the company are brands produced worldwide thereby making the export levels very low, Over that even domestic demands are sometimes go unfulfilled, In India, there exists a major controversy cancerning pesticides and other harmful chemicals in bottled+ Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management) + Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibilty. In certain locations special teams who go into business locations to specifically merchandise our products, 4.6.3: Departments involved in the Distribution process ‘The Distribution process mainly consists of three departments: * Distribution Department: It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their set-up. * Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm, records collections from distributors, periodically reconciles outstanding balances from distributors, oblains balance confirmation from distributors and follows up outstanding balances. ‘+ Shipping or Warehousing Department: It dispatches goods as per approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical contro! over load out area and updates warehouse stock records in a timely manner.4.6.2: outlet. that falls along that route, and deliver as per the demand on-spat and get pal (exceptions are there). Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption, The stock does not exhaust within a day or {wo, instead as and when required stocks are stacked up by them so as to avoid shortage or non- availability of the product. Examples: Departmental stores, Super markets etc. Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlats are not stored for future use instead, are exhausted on the same day and might run a little into the next day i. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc. General: Under this route, all the outlets that come in a particular area or an red to. The consumption period is not taken into consideration in this particular route. area along with its neighboring areas are Distribution System The system adopted by the Chandigarh Bottling Company (CBC) to distribute its products in the city is, direct on-spot delivery on on-spot demand by the retail The salesman hired by the company is accompanied by an assistant and a Market Developer (MD), They carry all the sku's in the goods carrying truck and are assigned a specific route, on which they have to deliver all the products to all the retail outlets in cash Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct contro! over the activities of sales, delivery, and merchandising and focal account management al the store level.4.6: Distribution Network KBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them. A typical distribution chain at KBPL would be: Nabipur Depot Warehouse Ronan » Plant Ware house Ga eae cack 3 Consumer QU Retalishett QU _etail stock ‘The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. & detailed and well organized distribution system contributes to.the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm, 4.6.1; Distribution Routes The various routes formulated by KBPL for distribution of products are as follows: * Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. it basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time ke. either a month of haifa month, Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.After the bottles are discharged from the warmer they are conveyed to the labeler and then ta the case packer where the filled bottles are re-packaged into cases. The cases of product travel to the palletiser which automatically stacks the cases on a pallet for storage and shipping. 4.5; Business Plan model at KBL Let us look at the sequential system of the distribution network right from the beginning. Cancentrate / tup from CCE Plant ware Plant ware a“ house house Regional depot. Regional depot ‘house of Punjab house of Himachal and Haryana ™— oo | pradesh Imports of canisters | Distribution Distribution Routes to Retail Routes to Retail Shelf Shelf a5% hot caustic solution for a specified time period and rinsed with fresh water prior to their discharge from the bottle washer. Prior to entering the filler, the bottles are inspected either visually by employees or electronically by a light scanner to insure no foreign objects or debris is left in the bottle. Non-retumable bottles and cans pass through a rinser which consists of a series of cold water spray. These sprays remove loase dust and debris from inside and outside of the containers. Eigtt-packs of 2-lire soft drink plostic boties on the way to an automatic palietizer The individual bottles are then filled, discharged trom the filler, and conveyed to the cappericlosure max 1@ where a crimp cap oF twist-off type closure is applied. ‘The containers are then coded an then passed through the bottle warmer. The warm, water sprays inside the warmer to bring the temperature of the product to approximate room temperature. The purpose of the warmer is to avoid excessive condensation which would form on the container's exterior if they were allowed to gradually warm to room temperature, Any condensation on the cantainer's exterior would cause problems for the rest of the packaging involved, including label application and fiber carton packaging. CBC India SSIES‘The production of soft drink begins with the preparation or “batching’ of thick, high+solid syrup. This syrup is made in a stainiess steel tank by the blending of a flavored concrete containing various artificial and natural flavours (the concentrate is manufactured by and purchased from the parent company by the individual bottlers), sodium benzoate (preservative), sugar, and treated water. This syrup is checked by quality control for conformance to established company standards and then pumped to the proportioner in the filling area. At the proportioner, the syrup and treated water pass through pre-set orifices at a constant rate of flow and are blended at a ratio of approximately 1 part syrup to 5 parts of treated water, The product is then pumped to the chiller/carbonator to produce the final soft drink of the proper carbanation and fed to the can or bottle filler. During the carbonating process the soft drink is chilled to approximately 2-5°C to prevent foaming during filing process, ‘Soft drink canning line showing filing operations Returnable bottles to be filled are usually hand fed by the case onto a conveyer which carries the cases of empty bottles to uncaser, The uncaser removes the bottles from the cases and places them onta the empty bottle conveyer. From the uncase! the conveyor carries the boltles to the bottle washer where they are immersed in a 3- CLC Indie EaSenae4.5; Manufacturing The Company has two mega greenfield bottling plants for filling soft drinks located at Village Nabipur, District Fatehagarh Sahib (Punjab) and Village Katha, addi, District Solan (HP) Manufacturing Process Coser Processing Production Soft drink bottling or manufacturing invalves five major processes, each with its own safety issues that must be evaluated and controlled: 1, Treating water, 2. Compounding ingredients. 3, Carbonating product, 4, Filling product, 5. Packaging,companies in Udyog Vihar, Gurgaon; DLF Gurgaon & Faridabad in Haryana as also some areas of Punjab. The foremost achievement of the Group is the strict adherence ta system oriented quality production along with financial discipline, leading to consistently increasing sales graph and an unblemished track record of dealings with Fisfbanks. Although soft drink business still remains core activity of the Group, yet sensing increased focus on industrial activity in India, the Group has ventured out into other infrastructural projects of prime importance like Power & Energy generation from non-canventional resources and mining. “President (Central) ORGANIZATION STRUCTURE IN COCA-COLA, INIDA4.3, : KANDHARI BEVERAGES PVT. LTD. Kandhari Beverages Pvt. Ltd, Nabipur, Punjab and Baddi, Himachal Pradesh ‘The Company is engaged in the business of Cahir manufacturing, marketing and distribution of aerated water under franchise agreement with the Coca-Cola Company, USA. The Company has two mega greenfield bottling plants for filing soft drinks located at Village Nabipur, District Fatehagarh Sahib (Punjab) and Village Katha, Baddi, District Solan (HP), Present gross turnover of the company is approx Rs. 190.00 Crores. The company has also entered the power sector by setting up a 6.25 MW Wind Mill project having 5 units in the State of Maharashtra. ' ENRICH AGRO FOOD PRODUCTS PVT. LTD. Enrich Agro Food Products Pvt. Ltd., Gurgaon, Haryana ‘The Company is an ISO 9001; ISO 14000 ISO 22000 certified unit engaged in the business of manufacturing & marketing of aerated water under franchise agreement with the Coca-Cola Company, USA, The most moder and fully automated bottling plant with a capacity of 1550 Bottles Per Minute is located at Gurgaon and is catering to prime areas in South Delhi and the towns of Faridabad and Gurgaon. Present gross turnover of the company is approx, R's, 100,00 Crores, 4.3.6: GROWTH RECORD From a very humble beginning in 1967, today the Group turnover aggregates to Rs. 800 Crore approx, The Group provides gainful employment to about 3000+ strong warklorce. The Group companies are fully conscious of their socio- economic responsibiliies and have taken up a series of community development programs especially the funding & selting up of Rain harvesting projects to conserve the scarce natural resource j.e, water. A number of such projects have been financed by Group4.3: The Company 4.3.1; MANIFESTO FOR GROWTH OUR MISSION In line with our main partner Coca-Cola we wish to refresh the world and in addition we further aim to create value and make a difference by making our environment a cleaner and better place to live for aur future generations. QUR VISION Our Company vision as was established by the founder of our Group ramains to provide the people that work in the group, be it the owners or managers a reat place to work where people are inspired to be the best they can be and work with quality brands and Partners to maximize profit and productivity, 4.3.2: MANAGEMENT Mr. Nirmal Singh Kandhari, Group Chairman has been a pioneer figure in Indian soft drink industry. He was instrumental in establishing Kandhari Group as a soft drink manufacturing giant with a number of bottling units in Northem India. Mr. Jaspal Singh Kandhari, Managing Director, has been steering the Group to new heights by redefining business strategy of the family business, Mr.Jaspal Kandhari is Mr. Nirmal Singh Kandhari’s younger brother. MrVarinder Pal Singh Kandhari, Executive Director locks after the day to day operations of the group. He is the son of Mr. Nirmal Singh. HUMAN RESOURCE The Kandhari Group has more than 3000+ employees, which include around 300 professionals with various skill set and professional competence in the various industries they are handling. The Group has different project execution , maintenance teams for different application areas in Information Technology Industry.of the star bottlers of PARLE the Group switched to manufacturing, bottling & marketing of Coke brand of soft drink products. 4,2: Coca-Cola and Franchisee Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations. 27 Company Owned Bottling Operations (COBO). 17 Franchisee Owned Boitling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and ski within the Company. FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIAChapter 4: KANDHARI BEVERAGES PVT. LTD. 4.1; Introduction to the Company Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India, Coca-Cola re-entered the Indian market on 26” October 1993 after a gap of 16 years, with its launch in Agra, An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parle's plants and a well set boitling network, an excellent base for rapid introduction of the Company's Intemational brands was formed. The Coca~ Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 4993.Thus these products became a part of range of products of the Coca-Cola Company. KANDHARI GROUP was established in 1967 by Late Mr. Teja ‘Singh Kandhari, is presently a progressive business house in Gay India. The group's first venture was a bottling unit as a franchisee of PARLE's sof drink manufacturing * Gold Spot * under license from PARLE established at Amritsar in the north indian state of Punjab.Kandhari Beverages Lid is among Coca-Cola India's top 4 franchisee batllers. Over a period of time, the Group ventured deep into Aerated Water business and expandad its scope of operations ta other Indian states including Punjab, Haryana, Chandigarh and Himachal Pradesh. In 1993, the world renowned soft drink giant - Cabbie Coca-Cola entered india and bought over PARLE brand of soft drink products, being one= Inthe Juice section: rer vd arr) = Inthe Soda Water and Bottled Mineral Water section: = Inthe Tonic Water section: + Inthe Tea and Coffee section: Ceti IndiaOther Drinks Coca-Cola India Other Drinks So much more than soft drinks. Coca-Cola's brands also include milk products, soup, and more so you can choose a Coca-Cola Company product anytime, anywhere for nutrition, refreshment or other needs. = Inthe Cola Section: cit + Inthe Orange section:nutritious, refreshing and flavorful beverages. Soft Drinks: Soft Drinks F ‘Coca-Cola's dozens of soft drink brands provide flavor and refreshment in a variety rm | of choices, From the original Coca-Cola to most recent introductions, soft drinks from The Coca-Cola Company are both icons and innovators in the beverage industry, Sports Drinks Sports Drinks Carbohydrates, fluids, and electrolytes = team together in Coca-Cola's Sports & bea Deike) providing ‘rapid hydration “ana = terrific taste for fiiness-seekers at any | | i a) lems level Tea and Coffee Tea and Coffee Bottled and canned teas and cotfees =m) provide consumers’ favorite drinks in $) y convenient take-anywhere packaging, bake satisfying both traditional tea drinkers and today's growing coffee culture. Water a A Smooth and essential, our Waters and Water Beverages offer hydration in its (| purest form, * eGChapter 3: COCA-COLA PRODUCTS The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to b pack the existing drinks. 3.1; Brands of Coca-Cola Coca-Cola Zero® has been one of the most successful product LB) taunch hes in Coca-Cola's history. In 2007, Coca-Cola's sold nearly SA 450 million cases globally. Put into perspective, that's roughly the same size as Coca-Cola's total business in the Philippines, one of our top 15 markets. As of September 2008, Coca-Cola Zero is available in more than 100 countries. Energy Drinks For those with a high-intensity approach to life, Coca-Cola's brands of Energy Orinks contain ingredients such as ginseng extract, guarana extract, caffeine and 8 vitamins. Juices/Juice Drinks Juices/Juice Drinks We bring innovation to the goodness of juice in Coca-Cola's more than 20 juice and juice drink brands, offering both adults and children