Chapter-1

    

Introduction Need for the study Objectives of the study Methodology of the study Limitation

Chapter-2
 Industry Profile

Chapter-3
Company profile

Chapter-4
Theoretical Frame Work

Chapter-5
ANALYSIS AND DATA INTERPRETATION 1. DIRECT MARKET 2. INDIRECT MARKET

Chapter-6
FINDINGS SUGGESTIONS

1

 Introduction  Need for the study  Objectives of the study  Methodology of the study  Limitation

2

INTRODUCTION
Soft drinks are the craze of both young and old in the entire country. These products are mainly thirst quenchers, having gained predominance mainly because of the tropical climate conditions. The profit margin being quite large, there has been a spurt in the product line and also entry of competitors into this industry. These days the manufacturers are in heads on competition one another other so as to corner a major share. Hence only the fittest of them can survive. The quality, quantity, price, product and perfect understanding between the company and retailers go along in building a good image for the products manufactured. The competition has been increasing between Coca-Cola and Pepsi, with very little differentiation in the product promotion careers. It is very important to know about the marketing practices of Pepsi and competitors. The information about product, price, place and promotion is very helpful to increase the sales. Soft drink industry is a well-known consumer product industry. It has its origin in the year 1772, in U.S by bottled soda manufacturers. By inventing a machine in 1809, they carbonated a drink. Coca-Cola is the best-selling soft drink in most countries. While the Middle East is one of the only regions in the world where Coca-Cola is not the number one soda drink, Coca-Cola nonetheless holds almost 25% market share (to Pepsi's 75%) and had double-digit growth in 2003.Some claim Coke is less popular in India due to suspicions regarding the health standards of the drink. However, market share data does not back this view. Specifically, in 2005, CocaCola India's market share was 60.9%. However, Thums Up, a brand acquired by The CocaCola Company, contributes a major part of this market share rather than Coke. In Visakhapatnam Coca-Cola has 68% of market share and Pepsi 28%, remaining 4% other soft drinks. Now a days, Soft drink industry has grown very extensively and millions of people consume soft drinks every day. Age, income, climate, are not at all a barrier for consuming soft drink by the people. This is the reason for the tremendous growth in soft drink market. According to the survey conducted on consumption of beverages, tea comprises for 90%, filter coffee is 4%, beverages is of 2%, instant coffee comprises of 2% and carbonated soft drinks just above 1% of total consumption. Squashes, concentrates and mineral water account for a minute part of consumption.

3

Beverages can be classified in to two segments. The first segments can be done basing on whether they are milk-based like tea, coffee, flavoured milk, and health beverages and the second segment can be done basing on mineral water. The entire soft drink industry can broadly be classified into two heads as follows, Organized and Un- organized. The organized sector can be further divided into carbonated (bottled soft drink) and Noncarbonated (tetra packs, concentrates and other squashes). The unorganized sector can be identified with golly soda, lassie, fruit juice etc. Out of the above, the bottled carbonated soft drink industry is a fast growing market which includes all type of non alcoholic carbonated flavoured and sweetened beverages. The carbonated soft drinks are mostly available in glass bottles, give- away bottles, cans, pets, dispensers and are available in a variety of flavours, under different brand names, in different quantities. The turnover of Indian soft drink industry in value terms has been estimated to be around Rs.1,800 cores with 3 lakhs retailers all over the country.

Market share of soft drinks Coca-Cola and Pepsi:
Atlanta-based Coca-Cola sold 4.2 billion cases of carbonated beverages in the United States in 2007 for 42.8 percent of the overall market. Chief rival PepsiCo Inc., based in Purchase, N.Y., was second with about 3.1 billion cases, or 31.1 percent of the market. Volumes for both Coca-Cola and Pepsi were slipped 2.7 percent.

---- o ----

4

NEED FOR THE STUDY
Indian soft drink is dominated by a few players like Parle drinks, Pepsi, McDonald, etc…. Fact with the liberalization in 1990’s Indian Economy, the competition in this industry has increased tremendously and the consumer has got a wide range of chief choices among. It is the time to take the steps to improve the market share of the Coke products. Hence focus laid on its marketing functions like channels of distribution. As the other firms in the industry, also try to improve their market share by developing new techniques and strategies. It is not possible for a firm to withhold the market share for a long time without dealing with the factors prevailing in the market, which affect the market condition in the industry. The study helps the organization to improve the performance of flavour with competitive organization. It helps the organization for rendering better service to their retailers. It also helps in identifying various flavours, market share in their respective competitors. It helps to improve customer satisfaction towards Coca-Cola products. There is a tremendous demand for soft drinks. The companies are spending huge amount on advertising in order to project the brand in to the mind of the customer. It became a passionate thing to the youngsters to order either the coke or Pepsi along with spicy food item. So that the soft drink should be conveniently available to the customer. When they are in thirsty state they could opt for a soft drink rather than mineral water because of the advertising stimulation, so that soft drinks playing a vital role in market to full fill the need of customer, so that the company should focus on the wide area distribution. Accompanied to representations of both formal and informal marketing. Having considered one by one of consumers and retailers in present day market, an attempt was made to study the perception of both consumers and retailers on the channels of distribution of Coca-Cola brands in general and market share of coke in Visakhapatnam.

---- o ----

5

OBJECTIVES OF THE STUDY

 To know the channels of distribution of soft drinks in India, Andhra Pradesh, Visakhapatnam.  To find out the different products that is being offered by coke throughout the world.  To know different types of channels of distribution the coke is presently using for its sales and distribution.
 To understand the criteria of selection of distributors in Hindustan Coca-Cola

Beverages Pvt. Ltd.
 To measure the effectiveness of distribution channel in achieving the overall objectives

of Coca-Cola.  To evaluate the cost effectiveness of maintaining the distribution channels.
 To identify the need and importance of RED (Right Execution Daily) concept as one of

the marketing strategies to increase the sales of the Coca-Cola drinks.  To know the sales performance and level of satisfaction of the dealers.

6

METHODOLOGY

The methodology followed with regard to the collection of information relevant to the project work entitled Channels of Distribution is mainly from two sources.

PRIMARY SECONDRY • PRIMARY
A survey with 200 respondents has been conducted in the Visakhapatnam market with a questionnaire consisting of 21 questions on information regarding: Demography, price, service frequency, preferred distribution channels, effectiveness of advertisement, brand awareness, product features, etc…, was prepared and made use of.

SECONDARY
Information has been collected through magazines, advertisement, newspapers, company Annual reports, company’s brochures, manuals , journals and also from the websites of Hindustan Coca- Cola Beverages Pvt. Ltd.

DATA ANALYSIS
A careful analysis on obtained data has been done. The data obtained is tabulated and conclusions are drawn to suggest the company for betterment. The report contains a list of tables, layers, abbreviations and list of appendices. It also contains bibliography. The first chapter of this report contains the introduction, need of the study, scope, objectives of the study, limitations and methodology used in compiling project. Types of data, enumeration, sample, population, primary data and secondary data are all clearly defined in this chapter. The second chapter includes the industry profile. It also contains information about the company. The products offered by coke are given in the report. Third chapter includes the company profile.

7

Fourth chapter includes theoretical frame work. Fifth chapter, the main part of this report is analysis and interpretation. After conducting the survey through questionnaire the analysis of reports had been done. This chapter contains charts for each and every table. To show the percentage of each parameter, interpretation is given for each and every table. By this interpretation the reader can understand how the results are arrived at. Interpretations offer the reasons for the responses given by responds. Sixth chapter contains summary, findings and suggestions. After analyzing the data, the findings or the final results in the percentage of population showing interest towards Coca-Cola are evaluated. Based on the results, suggestions are given to improve the effectiveness of channels of distribution and the market share of the company, in soft drink sector, etc..

---- o ----

8

LIMITATIONS

While conducting the survey and proceeding in the project the following limitations were encountered.

The study was only limited to the Visakhapatnam unit of Hindustan Coca- Cola Beverages Pvt. Ltd.

The answers given by the respondents highly depend on the mood and interest and thus the accuracy fluctuates sometimes.

The time was a big constraint. The duration of 8 Weeks was a pretty short time to conduct such survey. Coca-Cola Company has large no. of customers. But, due to lack of time the survey had to be restricted to 200 outlets only.

Sometimes, the respondent did not co-operate while asking the questions.

9

Industry Profile

10

INDUSTRY PROFILE
A generic term applied to beverages that do not contain alcohol. Soft drinks are most often thought of a carbonated, though effervescence is not a requisite A soft drink is a drink that does not contain alcohol, as opposed to hard drink, that do; in general the term is used only for cold beverages. Hot chocolate, tea and coffee are not considered as soft drinks. The term originally referred exclusively to carbonated drinks (soda) and is still commonly used in this manner In both senses “soda pop” also called regionally cold drink or group soda or soda water or tonic. A non-alcoholic, flavoured, carbonated beverage usually prepared commercially and sold in bottles or cans. A serving of this beverage see regional note at tonic.

MARKETING
Soft drinks are commonly sold in stores in bottles and cans. Sales earn a significant amount of money for the producers and distributors. Most famous name brand soft drinks are produced and bottled by local or regional independent bottling companies. These companies license the name, and usually sell the main ingredients, with syrup made by the main manufacturing plant of the trademark holders. In the past, most cola flavoured and other soft drinks were sweetened with ordinary sugar (sucrose), but to save on production costs, most companies in the USA have turned to the more economical HFCS as a sweetener, because of the high price of sugar n the USA. In some countries outside the United States, sugar is still used. Competition in the industry among soft drink producers is widely referred to as the cola wars.

DIET SOFT DRINKS
In recent years, there has been a growing demand for alternatives to sugar in soft drinks. Regular soft drinks largely contain sugar or corn syrup, and have been blamed in recent years of contributing to obesity. Sugars, like other carbohydrates, stimulate the production of the

11

hormone insulin, which causes the body to store fat rather than burn it. “Diet” soft drink are sweetened with chemicals, such as aspartame and saccharin, that are perceived as sweetened with chemicals, such as aspartame and saccharin, that are perceived as sweet by most people. Yet do not stimulate insulin production or have any food energy or nutritional value. In some other area, these drinks are called “soda pop” while in and around Boston Massachusetts, they are often called tonic. Particularly among older generations, in North Carolina the terms drink and soft drink are commonly used along with soda and coke to refer to non alcoholic cold drinks. Some older generations of southerners refer to such drinks as “dope”. So the great pop Vs soda controversy for maps and geographical trends. At many restaurants in the U.S, one finds that the product of only a single major beverage producer, such as the Coca-Cola Company or Pepsi co. are available, while a patron who request a “coke” may be truly indifferent as to which cola brand he receives. The order taker will confirm intent with a question like “is Pepsi Ok?” similarly, “7 Up” to “Sprite” may indicate whichever clear, carbonated, citrus-flavoured drink happens to be at hand. The generic use of these brand names does not affect the local usage of the orders “pop” or “soda” to mean any carbonated beverage.

COCA-COLA VS PEPSI
soft drink refers to all types of non-alcoholic, carbonated, sweetened, flavoured beverages. They are all artificially sweetened. The soft drink industry has undergone many changes with changing consumer needs, wants and also with changing Government policies. This formed the basis for different innovations in packaging such as bottles, cans, tetra packs and pet bottles in a variety of flavours. This sector can be understood in more detail by the following points.  Background  Segmentation  Consumer habits and practices  Market characteristics

12

BACKGROUND
Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, clear lemon and oranges come under carbonated drinks while mango drinks and oranges juices come under non-carbonated category. The soft drinks market till early 1990 were in the hands of domestic players like Campa, Thums Up, Limca, etc., but with the opening up of the economy and liberalization of economic policies in India, it is Pepsi and Coca-Cola is the leader in carbonated drinks market in India. It is Pepsi which scores over Coke but the difference is fast decreasing (courtesy huge ad-spending by both the players). The two American cola giants have cleared up the arena and are backing all their power behind the Indian franchise of their globe girdling brands. While Pepsi which scores over Coke but this difference is fast decreasing . Pepsi entered into the Indian market in 1991 and Coke re-entered (after they were thrown out in 1977, by the Central Government) in 1993. Pepsi has been targeting its products towards the youth and it has struck the right chord with the market and the sales have been doing well by sticking to this youth bandwagon. Coke on the other hand struggled initially in establishing itself in the market. In a span of 7 years of its operation in the country it changed its CEO 4 times but finally they started understanding the pulse of the Indian consumers. Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption. Fountains also dispense them in disposable containers.

SEGMENTATION:
The soft drink market can be segmented on the basis of place of consumption or on the basis of type of products. The segmentation on the basis of place of consumption divides the market into two parts :-

13

 80% of the consumption of soft drinks in the premises i.e., restaurants, railway

stations, cinema theatres, etc.
 Rest of 20% of the market comprises of the soft drink purchased for

consumption at home. The market can also be segmented on the basis of types of products into cola products and non-cola products.  Cola products account for nearly 64% of the total soft drinks market. The brands that fall in this category are Pepsi, Coca- Cola, Thums Up, Diet Coke, Diet Pepsi, etc.
 Non- Cola segment, which constitutes 36%, can be divided into 4 categories based

on the types of flavours available, namely

 Cola  Orange  Cloudy lime  Clear lime  Mango juice  Orange juice  Apple juice  Soda and water

ORANGE
Orange flavour based soft drinks constitute around 17% of the market. The segment is largely dominated by national brands like Fanta of Coca- Cola and Miranda Orange of Pepsi company, which collectively form 15% of the market. Rest of the market is in

14

hands of smaller brands like Crush( earlier of Cadbury Schweppes and now of CocaCola), Himmat etc.

CLOUDY LIME
Cloudy lime flavour constitutes 14% of the market and is largely dominated by Limca of Coca- Cola and Miranda Lemon of Pepsi company. Limca is the market leader with around 70-75% of the market followed by Mirinda Lemon.

CLEAR LIME
This segment of the market witnessed good growth initially with all the players launching their brands in the segment. But now the growth in the segment has slowed down. The brands available in this segment are 7Up, Mountain Dew of Pepsi, Sprite of Coca- Cola and Canada Dry( earlier of Cadbury Schweppes and now of Coca- Cola).The segment constitutes of the total soft drinks market.

MANGO
This flavour segment constitutes 2% of the total soft drinks market and it directly competes with mango based fruit drinks like Fruity The leading brands in this segment are Maaza of Coca- Cola , Slice of Pepsi and Mangola (Earlier of Dukes now of PepsiCo). There is very thin line of difference between the clear and cloudy lime. The most obvious feature is that clear lime has to be bottled in green bottles as sunlight harms the drink and changes the taste. There are some small local brands at city or regional levels. Most of these are either merging with two big players ,Coca- Cola and Pepsi or they command a very small less than 3% of the total market in their respective areas.

CLASSIFICATION BASED ON FLAVOURS

15

Parle, Coca-Cola and Pepsi dominated the Indian soft drink market in the ensuing days. Coca- Cola purchased Parle’s brands such as Thums Up, Limca, Gold Spot, etc., along with its distribution network in 1993. Brands available with Coca-Cola and its competitors are as follows,

FLAVOURS:
Company Cola Coca-Cola Coke Thums up Orange Cloudy lemon Clear lemon Fanta Limca Sprite Miranda White Miranda 7up Mountain Dew Slice ----------Lime -----Pepsi Pepsi Others ------

Mango Juice Orange Juice

Maaza Minit maid pulpy orange Fanta apple Kinley Kinley

Fruity & Maa Fruity

Apple Juice Soda Water

-----Lehar Aqua fine

Fruity Bisilery Bisilery

CONSUMERS HABBITS AND PRACTICES

16

 Soft drinks come under the category of products purchased in impulse. Though

the market is marred by brand loyalty the purchased decision itself is a low involvement decision. This attitude of impulse buying is slowly changing to occasion- led buying and also some extent to consumption through home refrigeration particularly in urban areas.
 The market is slowly moving from non-alcoholic carbonated drinks to fruit

based drinks and also to plain bottled water due to lower price and ready availability of the products.
 Consumers purchase soft drinks to quench thirst. Therefore people travelling and not

behaving access to hygienic water reach out for soft drinks. This accounts for a large part of sales.  Brand awareness plays a very crucial role in purchase decisions. Consumers prefer convenient and economy products.  Availability in the chilled form effects the purchase decision. This had made both the companies to push its sales and to increase its retail distribution by offering visicoolers to retailers.  Though there is no aversion in consumption of soft drinks by any age group, the main consumers of this market are people in the age group of 30 and below.  Product differentiation is very low, as all the products taste the same, but brand loyalty is high in the case of kids and people in the age group of 20- 30 years.  Consumers are sensitive to the outlay where the purchase of beverages is concerned, hence the market is price sensitive.  Due to the high cost of soft drinks, consumers prefer beverages like tea, coffee or other drinks like sherbet and squashes. The market growth of 22% till last year has got stifled due to high excise duty of 40% leading to higher price of the end product.

17

MARKET CHARACTERISTICS
The soft drink market is highly skewed in terms of place of consumption , regional distribution and soft drink flavours. While 80% of the consumption is impulse based outside home , 20% comes from consumption at home. This trend is slowly changing with increase in occasion led sales. Changing lifestyle, increasing urbanization and impact of liberalization has slowly and gradually stared moving the market from impulse led to occasion led home refrigeration led consumption. The market preference is highly regional base. While Cola drinks have main markets in metro cities and northern states like UP, Punjab, Haryana etc. orange flavoured drinks are popular in Southern states. Sodas too are sold largely in southern states decides sale through bars . Western markets have preference towards mango-flavoured drinks. Diet Coke presently constitutes just 0.7% of the total carbonated beverage market.

MIXED SOFT DRINKS
a. A graveyard/ suicide / pop bomb / swamp water /garbage soda is made by mixing many

soft drinks together. Usually form a soda fountain.
b. Float is created by dropping a scoop of ice cream in to a soft drink. In the Midwestern

United States, a soft drink with ice cream added is most often called a ‘soda’ thus leading to quizzical looks form wait staff when people ask for a “soda” instead of pop. The most common of these is the Root beer float. In Australia and New Zealand, this is known as a spider c. Vice pretax (black cow) – ice cream in cola.
d. Vice amarelle (yellow cow) - ice cream in quadrant flavoured soft drink.

e. Pant era cored Rosa (the pink panther) – strawberry ice cream in lemon lime soft drink. In the U.S some floats have specific names as a Brown Cow or Black Cow, vanilla ice cream in root beer, or Boston color, vanilla ice cream in Vernon’s ginger ale. ---- o ----

18

Company profile

19

COMPANY PROFILE
The Coca-Cola Company is one of the largest manufacturers, distributors and marketers of non alcoholic beverage concentrates and syrups in the world. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Smith Pemberton in 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at that time, due to the belief that carbonated water was good for the health Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. For the first eight months only nine drinks were sold each day. The Coca-Cola formula and brand was bought in 1889 by CANDLER who incorporated the Coca-Cola Company in 1892.Besides its name sake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territory. Diet Coke was introduced in 1982 to offer an alternative to dieters worried about the high number of calories present in regular Coca-Cola. The Coca-Cola Company has introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, which has become a major diet cola. However, others exist, including Diet Coke Caffeine-Free, Cherry Coke, Coca-Cola Zero, Vanilla Coke and special editions with lemon and with lime and even with coffee.
• • • • • • • • • •

Diet Coke ( 1982) Cherry Coke (1985) Diet Cherry Coke (1986) Coke with Lemon (2001) Diet Coke with Lemon (2001) Vanilla Coke (2002) Diet Vanilla Coke (2002) Coca-Cola C2 (2004) Coke with Lime (2004) Diet Coke with Lime (2004)

20

• • • • • • •

Diet Coke Sweetened with Splendid (2005) Coca-Cola Zero (2005) Coca-Cola Black Cherry Vanilla (2006) Diet Coca-Cola Black Cherry Vanilla (2006) Coca-Cola Black (2006) Diet Coke Plus (2007) Coca-Cola Orange (2007) The Coca-Cola Company also produces a number of other soft drinks including Fanta

(introduced around 1942 or 1943) and Sprite. During the 1990s, the company responded to the growing consumer interest in healthy beverages by introducing several new non-carbonated beverage brands. These included Minute Maid Juices, sports beverage, flavoured tea NESTEA (in a joint venture with Nestle), Fruitopia fruit drink and Dasani water, among others. In 2001, Minute Maid division launched the Simply Orange brand of juices including orange juice. Coca-Cola is the world’s largest selling soft drink concentrates since 1886, returned to India in 1993 after a gap of 16 years giving a new brand Thums up to the Indian soft drink market. In the same year, the Company took over ownership of the Nation's top soft-drink brands and bottling network. Ever Since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems and marketing channels. CocaCola India is among the country’s top international investors, having invested more than US$ 1 billion in India within a decade of its presence and further pledged another US$ 100 million in 2003 for its operations. The Company has not only shake up the Indian carbonated drinks market, and given consumers the pleasure of world-class drinks to fill up their hydration, refreshment & nutrition needs but has also been instrumental in giving an exponential growth to job opportunities On the distribution front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow

21

alleyways of Indian cities constantly keep the brands available in every nook and corner of even the country’s remotest areas.

PRODUCTS
Some of the most recalled brands across the world include names such as Coca-Cola, Diet Coke, Sprite, Fanta, along with the Schweppes product range. The acquisition of Thums Up brought some of the leading national soft drinks like Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to this, Kinley mineral water was launched in the year 2000. The Company has been ranking up "first" in the introduction of canned and PET soft drinks vending machines and backpack dispensers for crowds of cricket supporters.

BRANDS OF COCA-COLA WORLD OVER
A AWKNO AMERICAN AQUANA AQUARIS B BACARDI MIXER BEAT BIMBO BREAK BOLT BORI C CAFFEINE FREE CHINOTTO CHIPPEWA ADES ANDIFRUT ARVA ALMUDDLERAMBASSA ANDINANECTAR AQUA AQUAVARIS AYYVAL

BARCS BIMBO BISTRONE BORI

BEVERLY BIBO BLACK FIRE BRIGHT & EARLY

COKE CALKING CIEL CITRA

CANNING CAPPY CARVES CHARUA CHERRY COKE

22

CHIVERY

CHOTTOKRUPO CHUCHAI COKE2 CRESTA CRUSH DISTINA

COCOTEEN CRYSTAL

D DAIZU NO SUSAME DASANI ACTIVE DASANI PLUS DIET ANDINA DRY DIET CHERRY COKE RASPBERRY DIET CRUSH

DANNON DASANI DASANI BALANCE DFASANI FLAVOURS DELAWARE PUNCH DIET DIET BARQ’S DIET CANADA DIET COKE CHERRY DIET COKE DIET FRESKYTA DIET KIA ORA

E ESCUIS EVA WATER EIGHT O’CLOCK EARTH & SKY F FANTA FIRE FONTANA FRESKYTA FRUIT SOLUTIONS FRUKTIME FULL THROTTLE SUGAR G GEORGIA GODVIA GOLD PEAK GRAPETTE GROOVY ZERO H HAJIME HI SPOT HOT POINT HUANG I ICE DEW J JAZ COLA

ENVIGA E1 RAYEK

FAR COAST FIRE ALIVE FRESCAFRESCA1 FRESS FRESTEA FRUITIA FRUTONIC

FINLEY FIORAVANTI FLAVOUR RAGE FRESCOLITA FRISCO FRUGOS FRUITOPIA FULL THROTTLE

GEORGIA CLUB GEORGIA GOLD GINI GOLDEN CRUSH GOULBURN VALLEY GUARANA KUAT LIGHT GUARANA KUAT

HAWAI HI-CHIRES

HEPPINGER HERO HORIZON

INCA KOLA

IPSEI IZVORUL ALB

JERICHO

JET TONIC

23

K KAPO KILIMANJARO L LIFT LILT LINNUSE LION LOVE BODY

KARADA MEGURI-CHA KIN KINLEY

KERI KIA ORA KOCHAKADEN KUAT

LIFT PLUS LIMCA

LIFT PLUS LIGHT LIMELITE LIMONADE

M MAAZA MAROCHA MER MAINUTE MAID LITE

MAD RIVER MELLO MINUTE MAID DELHI MINUTE MAID MAIS

MALVERN MARE MELLO YELLO MINUTE MAID MINUTE MAID NUTRI

N NADA NAMTHIP NORDIC MIST O OASIS ORCHY P PAANI PORTELLO Q QOO R RAMBLIN ROYAL TRU LITE S SAFIA SAMURAI SIMBA SHOCK SIMPLY ORANGE SPLICE

NAGOMI NESTEA

NALU NEXT NICO

ODWALLA

OLIMPIJA

PAMPA POMS

POWERPLAY PONKANA

PULP PIBB ZERO

QUATRO

QUWAT JABAL

REAL GOLD ROYAL TRU

RED FLASH RIWA

SAHTAIN SAMANTHA SIGNATURE SIM SIMPLY LIMEADE SARSI SMART SUPA SURGE SQUIRT SUNFILL SOBO

24

T TAI TEN REN THEXTONS

TOPPUR TOPS

TIKY TOKA

U URGE V VALPRE VALSER VITINGO W WILKIN’S Y YANGGUANG URUN

VALSER VIVA VITAL

VALSER ZERO VICA

WINK

WINNIE THE POOH

YANGGUANG JUICY

YOUKI

CORE VALUES
• • • • • • • Honesty Integrity Diversity Quality Respect Responsibility Accountability

TOTAL COST CONTROL AND QUALITY SYSTEMS 15-POLICY PROGRAMME
This has been devised by having three principles in mind. They are: 1) Symbol of quality. 2) Customer and consumer satisfaction.

25

3) Responsible citizen of the world.

POLICIES
POLICY 1: Physical facilities and people. POLICY 2: Advertising and Market place. POLICY 3: Protection of products, ingredients, processes and information. POLICY 4: Prevent unauthorized use of trademarked material. POLICY 5: Auditing and monitoring programmers. POLICY 6: Clean and hygienic conditions. POLICY 7: Standards and specification. POLICY 8: Storage, handling, and distribution of ingredients, final products and Packaging material. POLICY 9: Documenting policies, standards and procedures. POLICY 10: Operational fitness. POLICY 11: Business goals and objectives. POLICY 12: Customer and consumer programmed. POLICY 13: Product age. POLICY 14: Comply with food laws and regulatory requirements. POLICY 15: Environmentally responsible.

ENVIRONMENT POLICY
The activities are guided by Coca-Cola ecosystem, which provides a framework to transform these principles in actions.

Towards this objective, it shall endeavor to:

26

1. Establish, maintain and operate facilities to comply with all applicable Environmental Safety and Health laws, Statutes and Consents. 2. Formulating sound environmental objectives and targets and integrate a continuous process review in all essential elements of corporate management. 3. Conservation of natural resources specifically in water, energy and fuel by continually improving its usage and reducing wastage. 4. Working as catalyst to enhance collection of post consumer PET bottles through awareness programs and synergizing relevant agencies for getting better pricing to the consumer. 5. Seek co-operation with Public, Private and Governmental Organizations in identifying solutions to relevant environmental issues. 6. Advertising initiatives are to be critically evaluated while advertising in eco-sensitive areas; not put advertisement on Historical Monuments, Religious, Political Buildings & Structures and other specially protected and sensitive areas. 7. Using cooling equipment with environmentally friendly technologies. 8. Managing fleet operations in a manner to minimize environmental impacts by ensuring good maintenance, improving & tracking fuel efficiency and effectively managing wastes. 9. Ensuring Procurement policies that consider the environmental impact of packaging materials and all direct and indirect process aids used within the operation. 10. Ensuring all operations implement echo Management System and requirements under ISO 14001 before December 2004. This policy has been communicated to all associates of Coca-Cola India to ensure compliance and shall be made available to public and interested parties on demand.

Company’s Principles
Principle 1: The symbol of quality Everything associated with the trademarks of Coca-Cola Company reflects the company’s position in leadership and quality. Principle 2: Customer and consumer satisfaction Inherent in the products and services associated with the Coca-Cola Company is desire to attain the highest level of customer and consumer satisfaction. Principle 3: A responsible citizen of the world

27

The Coca-Cola Company is a responsible corporate citizen is all activities associated with its products and trademarks.

DATES AND EFFICACY

1881: Atlanta entrepreneur Candler had acquired complete ownership of cocacola business. Within four years, Candler’s is merchandising flair helped to expand consumption of Coca-Cola to every state and territory. 1893: In January “Coca-Cola” was registered in the U.S patent office. 1894: The first syrup plant outside of Atlanta was opened in Dallas. 1906: The first two countries outsides the U.S. to bottle Coca-Cola were Cuba and Panama 1915: The root glass company crated the Coca-Cola contour glass bottle. 1917: Three million cokes sold per day.” Coca-Cola” became the world’s most recognized trademark 1919: The Coca-Cola Company was sold to a group of investors for $25 million. 1923: Robert W. Woodruff became the president of the Coca-Cola Company. 1925: 6 million Cokes sold per day. 1927: The first Coca-Cola radio advertisement. 1928: Sales of bottled Coca-Cola surpassed fountain sales for the first time. 1929: Advertising slogan ” Coca-Cola, making good things taste better” 1961: Sprite was introduced. 1970: Advertising slogan “It’s the real thing”. 1971: the song “I’d like to buy the world a Coke” was released. 1979: Advertising slogan ”Have a coke and smile” 1982: Diet coke was introduced in July. 1988: Coca-Cola was the first independent operator in the Soviet Union. 1989: Advertising slogan “Can’t beat the feeling” 1993: Coca-Cola exceeds 10 billion cases sold worldwide. 1995: The Real Thing- Advertising campaign 1998: Coke classic adds 59.3 million cases compared to the previous year.
28

• • • • •

• • • • • • • • • • • • • • • •

• • • • • •

2001: Coca-Cola with lemon was launched. 2002: Coca-Cola vanilla was launched. 2005: Golden Peacock Award on environment management. 2006: Beverage Partners World Wide (BPW) joint venture to refocus o black tea platform 2007: Coca-Cola purchased Glaceau, a maker of flavoured vitamin enhanced drinks. 2008: The Coca-Cola Golden Spoon award.

AWARDS
• • •

Coca-Cola wins Bhagidari Award- Fourth time in a row. St. Agnes College (Mangalore University) Wins The First Jimmy & Rosalynn Carter Partnership Award In India. World Environment Foundation Awards – 2005 Golden Peacock Environment Management Award to Kaladera unit. All India Division COBO’s are now ISO 14001 certified. Golden Peacock Global CSR Award for 2008 in recognition of the Company's water conservation/management practices. Coca-Cola Bottling plant at Atmakuru, Andhra Pradesh received the Golden Peacock Award for water management and conservation. Coca-Cola Bottling Plant at Atmakuru, Andhra Pradesh received the CII National Award for Excellence in Water Management 2008.

• •

29

GOLDEN PEACOCK AWARD-2008

(From left): Bill Schultz, CEO, Hindustan Coca-Cola Beverages Pvt ltd, Dr Madhav Mehra, President of the World Council for Corporate Governance, UK, Baba Hardev Singhji Maharaj, Head Nirankari Mission, Ola Ullsten, former Prime Minister of Sweden, Sudhanshu Pokhriyal, Director Hyderabad & Coastal Andhra Pradesh operations & Ameer Shahul, Region PA & C Manager (south), receiving the Golden Peacock trophy & the citation. Bill Schultz, CEO, Hindustan Coca-Cola Beverages Pvt Ltd & Sudhanshu Pokhriyal, Director Hyderabad & Coastal Andhra Pradesh Operations, received the prestigious award from Ola Ullsten, former Prime Minister of Sweden at a function in the Himalayan foothills of Palampur.

30

Mission, Vision & Values-2020
The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for their business and provides us with a "Roadmap" for winning together with our bottler partners.

Mission
Their roadmap starts with mission, which is enduring. It declares their purpose as a company and serves as the standard against which they weigh their actions and decisions.
• • •

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

Vision
Their vision serves as the framework for roadmap and guides every aspect of the business by describing what they 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 Partners: Nurture a winning network of customers and suppliers, together we create Planet: Be a responsible citizen that makes a difference by helping build and support Profit: Maximize long-term return to shareowners while being mindful of our overall Productivity: Be a highly effective, lean and fast-moving organization.

satisfy people's desires and needs.

mutual, enduring value.

sustainable communities.

responsibilities.

31

Winning Culture
Their Winning Culture defines the attitudes and behaviors that will be required to make their 2020 Vision as a reality.

Live Values
Their values serve as a compass for actions and describe how they behave in the world.
• • • • • • •

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

Focus on the Market
• • • • •

Focus on needs of their consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious

32

COKE IN VISAKHAPATNAM
It all started in the year 1967 when the great visionary sri. M.V.V.S.Murthy has started his small business selling of the soft drinks in Visakhapatnam town. It was started as a small unit in the industrial estate with as many as of employees. As the day went by the same plant was made into big plant with the help of Government and it was called as “Visakha bottling Company”. All this as further improved with the help of the taking of the task of becoming the sole franchise of the Parle products. Then it came to be called as the Gold Spot Company. They were manufacturing all products of the Parle. The deal was strucked and it was acquired by the Coca-Cola in the year 1998. From then it became a sole authority to the property of the VBC and since then it was operating as a fully owned company. This plant operates with around 200 permanent employees and 100 labours. The plant is located at the picturesque location of manchukonda gardens and it rends to around 20 acres of land. The plant lay out is given below which depicts the extent of care taken by the management. The entire plant is divided into 4 segments. They are 1. Water treatment plant 2. Syrup preparation plant 3. Carbon dioxide preparation plant 4. Administration Hindustan Coca–Cola Beverages Pvt. Ltd., Visakhapatnam is a corporate branch of the coca – Cola Company registered in North Atlanta, North America. The basic unit is divided into five zones all together. They are: • • • • • • • North America Africa Latin America Europe Eurasia Middle – East Asia
33

The present Visakhapatnam unit is under Asia zone of the division of India. In India there are around 55 units (plants) and in Andhra Pradesh there are 5 plants namely • • • • • Visakhapatnam Vijayawada Hyderabad Nellore Kalahasthi

PRODUCTION PROCESS
The company has installed a semi automatic plant layout. The present capacity of the plant is 600 crate / hr i.e., 4,800 crates per shift of 8 hr. During the months of March to June due to peak demand, the plant has full capacity i.e., 5,500 crates per shift, with an extended shift of 12 hr. During the other months of production per shift is 3, 3000 crates per shift.

34

PRODUCTION SCHEDULE
The production schedule fixed daily by taking into consideration the market demand, availability of empty bottles and the inventory position of filled bottles. The storage capacity of the godown is at present 90,000 crates, which also limits the production schedule. The production schedule for each brand is fixed daily. Production is generally carried out in 2 shifts. In summer the demand reached its peak and production will be extended to 12 hr shifts.

RAW MATERIALS
Raw materials are the flavours essence concentrate supplied by Parle, sugar and water. Sugar is purchased in bulk from the wholesale sugar market. The requirement of sugar for 2025 production days is kept in stock and requirement for a month is indented in advance. Water required is met by municipal supply, Water from bore well and tube wells are also used when required. Water is further treated with chemicals. Purified water is then sent through steel pipes to a large container when CO2 is directed to some extent i.e., 20 litters. This is further directed where it is mixed with sugar and heated up to 80 degree centigrade is in heat exchange. In the immediate process it loses heat. Then this syrup is directed to syrup tanks where it mixes parleys essence at their proportion. This liquid is filled in bottles which are first washed with soap, later with a dilute solution of soap in a bottle washer. Then they are filled and capped at filler and crowing units. Capacity of filler and crowing units is 280 bottled per minute Bottle and caps are supplied by specialized firms like L&T and metal box India Ltd.,

STAGES IN PRODUCTION PROCESS
• • • • • Water Treatment Raw Syrup Making Ready Syrup Making Bottling Process Quality Control

35

INGREDIENTS
• •
• •

Water Sugar Carbon-dioxide (CO2) Flavour (for soda, only water, CO2 in used)

WATER
The water is from well and is stored in underground tank. Here water is chlorinated, later it goes into two different tanks through pipelines. The water is two types, one is soft drink and another one is treated water. The water is taken through a pipeline and filtered to remove suspended impurities and the water passes through carbon purifier to remove chlorine, present in the water. Then, it is passed through action exchanger, where minerals stored in the water. The water is used for bottle washing and water boiling purpose and so on.

BOTTLING
From the second pipeline water is passed and inserted in the washing machine. The washing machine was consists of five chambers. In the first stage, the bottles are washed with caustic mode at temperature of 400-500. The bottles are passed in the second chamber, primary tank, where they are again washed with water at a temperature of 750-800. On the third chamber, secondary tank, where the bottles are washed with water at a less temperature of 400500 ,next goes to Hydro Tank, where the water used for the bottles are washed with jet brushes and bottle spring etc., The final chamber, the water temperature come down to 250. The final chamber, bottles are dried and then ejected out. All these process take 20 minutes. The capacity of washing machine is 150 crates. The ejected bottles pass on the conveyor belt which carries the bottles to the packaging unit. The liquid syrup is mixed with treated water in definite ratio by pump in the premix. The mixture is then chilled by Ammonia chillers and then passes through corroborator which is filled with CO2 gas at definite pressure. This syrup making machine is called CROMY-45, from Japan. The conveyor belt carries the syrup. Then next goes to crowning machine do its business (capping).

36

These capped bottles are sent through conveyor belt and final checking will be done there and then the packed bottles are carried to godowns. These packaged bottlers are at a rate of 240 bottles per minute.

FINANCIAL STRENGTHS
Being an MNC, Coca- Cola has a wide network and market for its products worldwide. The finance to the company comes from the corporate office and financial institution abroad. The units which have been setup in India are subsidiary concerns of the group. These units mobilize their own funds and pay a Lampson amount to the corporate group for getting technology and the product specification to be manufactured in the company, for which the formulation comes from the office situated abroad. As these units are franchisee units of the company, the owners of these companies, have to perform individually in establishing the market and in the distribution of the products in the areas specified. These companies are generally situated in an economical processing zones (EPZ’s) or industrial units whereby they get subsidies in various forms from the Govt. as well as financial institution. The unit under study has secured loans from the central Govt. and APEDA (Ministry of Commerce) for setting up its unit at Visakhapatnam.

PLANT LAYOUT
The layout of bottling plant installed by the company is confirmed to produce on line layout. The machines and equipment are arranged according to the sequence of operations. The machines and workers are specialized in the performance of specific operations such as preparation of syrup, filling the bottles, aerating and sealing the bottles with liquid. All those operations are continuous. • • Volume of production is adequate for reasonable equipment utilization. Dem and for the production brands are reasonable stable.

37


All brands are standardized products. Supply of material is continuous. This type of layout is more advantageous when compared to other layout.

STRUCTURE OF H.C.C. B PVT. LTD, Visakhapatnam
The H.C.C. Beverages Pvt. Ltd, Visakhapatnam has a Managing Director with few directors. The director is in charge for four departments they are Production, Marketing, Finance, and Security. The Head of Production department is production manager and plant engineer. Under the production manager chemists and clerks are there. Under the plant engineer, foremen, assistant foremen, mechanics and workers are there. The marketing department is headed by sales executives. Under sales executives, junior sales executive, sale supervisor and sales-men are there. The finance department is headed by the finance manager. Under him cashier, accountants, clerks and steno’s are there. Finally the personal department is headed by the H.R. Manager and also has Security Administrator. Under the H.R Manager, Asst. H.R. Manager, office super indents, clerks and office boys are there.

38

ORGANIZATIONAL STRUCTURE OF THE SALES DEPARTMENT VISAKHAPATANAM UNIT

AGM/AOD

─────────────────────────────────────── Route Manager Human Resource Manager General Sales Manager Finance Manager

Plant Manager

──────────────────────── Area Sales MANAGE R Channel Manager Area Capabilit y
MANAGE R

Sales Executive

Marketing

Sales Trainers

Marketing Developer Distributors and Salesmen

Key Accounts

39

QUALITY CONTROL
The Coca-Cola Company takes great care to maintain the quality of the products of their factory. The bottles are critically examined for impurities continuously as the bottles move out. Random samples are taken for every half an hour and subjected to chemical analysis in the laboratory. The flavour concept, sugar percentage, smell, appearance and taste of the product are checked.

RIGHT EXECUTION DAILY (RED)
This is a part of marketing execution. The RED was first introduced in the year of 2006 by Hindustan Coca- Cola Beverages Pvt. Ltd in Visakhapatnam. This was introduced in order to make their outlets attractive and impress the other

outlets. The marketing developers who will be under the guidance of executive trainer do this arrangement process. Marketing developers has to work as per the instructions of executive trainer. In this, these people will be allotted in the local area where some RED outlets and common outlets of COKE will be available. They have to visit the RED outlets to check the display of the outlets whether they are as per the instructions or not. In this process of arrangement the main role is played by the activation elements like SGA [SALES GENERATING ASSETS] like visicoolers, combo boards, tent cards etc which will help in increasing their sales as well as the business.

The company people mainly focus on the three types of outlets they are
• • • E&D (Eating &Drinking) Convenience Grocery

40

E & D:
E&D comes under immediate consumption outlets where the people come and have the drink and go away from there. There will be no chance for taking the drinks from there and consume it in future. Mainly Hotels, restaurants etc will come under this category where the people have to consume it on the spot only they have no chance to take drinks like 300ml, 600ml, 250ml and tins of different flavours that the company is providing to them.

CONVENIENCE:
These are just like E&D, the pan shop, milk booths etc come under this convenience category. They also should maintain different packs like 300ml, 600ml, 250ml etc. So, the consumers will have it on the spot and go away.

GROCERY:
The best outlet on which the company has to focus is grocery. It is a place where people purchase all the products, which are to be consumed in the future. There we have to maintain the packs like 1500ml and 600ml of all flavours. In this all the departmental stores, supermarkets etc come under this category. The next step is to maintain the activation elements. Again the 3 different outlets like E&D, grocery and convenience need to have different activation elements. In first stage like E&D should contain the activation elements like combo boards which defines a combination of edibles with soft drinks which comes in low cost. For example: Burger and Thums Up. • Tent cards display the special items that has prepared for that day which are provided by the company itself.

Flanges, Road stand, GSB are the things, which will resemble the products of the coke. The company itself provides these, where the glow signboards help in displaying the name of the outlets where it displays the graphics of the company also.

In the second stage, grocery should contain the activation elements like display racks with headers which will resemble the company name and the products of the company. This rack should be purely charged that means it should be purely filled by the products of the CocaCola Company only. There must be shelf display. It should contain minimum 12 bottles of 6.5ml and 1.5litres.

41

Convenience is the next stage. This should contain elements like tabletop display because when one customer comes to the shop to purchase something, he should be able to know that the outlet contains this company product. The tabletops are especially given only for MAZAA. The last step in this is PRICE COMMUNICATION. There must be price communication chart in every outlet in a clear and visible manner. So, when a customer comes to purchase a product, he will be able to know what is the cost of the product, which he is going to purchase and whether he can afford or not. He can decide easily through this. The RED is a very good activity introduced by the company which will help customer, vendor as well as the company in many ways. Through this everyone will be benefited because the company can increase their sales, the vendor can make his shop look attractive and impress others whereas the customer will be aware of the product what he wants and its price.

Classification 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 different segments such as:  DIAMOND  GOLD  SILVER  BRONZE

DIAMOND
Those outlets, which give an annual sale of Coca-Cola products more than 800 carats.

GOLD
Those outlets, which give an annual sale of Coca-Cola products between 500 to 799 carats.

SILVER
Those outlets, which give an annual sale of Coca-Cola products between 200 to 499 carats.

BRONZE
Those outlets, which give an annual sale of Coca-Cola products less than 200 carats.

42

Theoretical Frame Work

THEORETICAL FRAMEWORK

43

The American Marketing Association (AMA) states, “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large" The entire route system has been designed in such a way that entire city is covered and sales are up to the expected levels. The route system has been one of the best practices by the Coca-Cola Company as it has many benefits of the direct selling. The Coca-Cola routes have been divided on the basis of geographical spread of the city and the regions near Visakhapatnam. The entire city has been divided into 22 AMC’S. The upcountry has been divided into three districts and they may be Vizianagaram, Srikakulam and Anakapalli regions.

Two levels of Marketing
• Strategic marketing attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at generating a competitive advantage relative to its competitors. • Operational marketing executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the marketing mix (4 Ps). For a successful marketing plan, the mix of the four "P" must reflect the wants and desires of the consumers or the target market. In these modern days, companies must urgently and critically rethink their business mission and marketing strategies instead of operating in market place which are fixed and known competitors. Today’s, companies work in war zone of rapidly changing technical advance, new law managed policies and diminishing customer loyalty. It is not surprising that today’s companies are those, which succeeded best in satisfying, their target customers. These companies see marketing as companywide philosophy not as a separate function. Marketing discipline is undergoing fresh reappraisal in the light of vast technological, economical and social changes facing today’s company. Mass markets are fragmenting into micro markets.

44

Multiple distribution channels are replacing single channels, customers are buying directly through catalogues, telemarketing, home video shopping, price discounting sales promotion are evading brand loyalty, conventional advertising media are delivering less and costing more. There are other seismic places, they must re-examine their functional concept and even reverse the very premises on which they built their successful business.

CHANNELS OF DISTRIBUTION ON HCCB Pvt. Ltd,
VISAKHAPATNAM When the product is finally ready for the market, it has to be determined what methods and routes will be used to bring the product in to the market that is to ultimate consumer and industrial users. The process involves establishing distribution strategies; include channels for distribution and providing for physical handling and distribution. Distribution is concerned with various activities, such as the movement and storage of goods, the legal, and promotional. And financial, the transfer of ownership from the producer to the consumer and user takes place.

DISTRIBUTION SYSTEM Direct distribution:
In direct distribution, the bottling unit or the bottle partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level.

In-direct distribution:
In in-direct 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 responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.

45

In

this figure c-channel is direct marketing. A, B are indirect channels.

IMPORTANCE OF A DISTRIBUTION CHANNEL
A distribution channel includes three kinds of utilities for the consumers as following • • • Time utility Place utility Possession utility

CHARACTERISTICS OF RETAILERS
The following are the characteristics of retailers:  Retailers have a direct contact with consumers. They know the requirements of the consumers and keep goods accordingly in their shops.    Retailers sell goods not for resale, but for ultimate use by consumers. Retailers require less capital to start and run the business as compared to wholesalers. Retailers generally deal with different varieties of products and they give a wide choice to the consumers to buy the goods.

FUNCTIONS OF RETAILERS

46

All retailers deal with the customers of different tastes and temperaments. Therefore, they should be active and efficient in order to satisfy their customers and also to induce them to buy more. The involvement of them in the distribution of goods is as follows.
a.

Buying and Assembling of goods: Retailers buy and assemble varieties of

goods from different wholesalers and manufacturers. They keep goods of those brands and variety which are liked by the customers and the quantity in which these are in demand.
b.

Storage of goods: To ensure ready supply of goods to the customer retailers keep

their goods in stores. Goods can be taken out of the stores and sold to the customers as and when required. This saves consumers from botheration of buying goods in bulk and storing them.
c.

Credit facility: Although retailers mostly sell goods for cash, they also supply goods

on credit to their regular customers. Credit facility is also provided to those customers who buy goods in large quantity.
d.

Personal services: Retailers render personal services to the customers by providing

expert advice regarding quality, features and usefulness of the items. They give suggestions considering the likes and dislikes of the customers. They also provide free home delivery service to customers. Thus, they create place utility by making the goods available when they are demanded.
e.

Risk bearing: The retailer has to bear many risks, such as risk of:
i. ii. iii. fire or theft of goods Deterioration in the quality of goods as long as they are not sold out. Change in fashion and taste of consumers.

f.

Display of goods: Retailers display different types of goods in a very systematic and

attractive manner. It helps to attract the attention of the customers and also facilitates quick delivery of goods.
g.

Supply of information: Retailers provide all information about the behaviour,

tastes, fashion and demands of the customers to the producers through wholesalers. They become a very useful source of information for marketing research.

DEFINITION

47

1. A marketing channel or channel of distribution may be defined as “A path traced in the

direct or in-direct transfer of title to a product, as it moves from a producer to ultimate consumers or industrial owners”. 2. A channel of distribution is a group of inter related intermediaries who direct products to consumers.
3. According to the American marketing association, “A channel of distribution or marketing

channel, is the structure of inter-company organization and extra company agents and dealers wholesale and retail through which a commodity product or service is marketed”. The channel of distribution is a structure, which is organized and represents a choice among alternative channels of distribution.

DECISION MAKING FOR CHANNELS OF DISTRIBUTION
Channels of distribution are the most critical part of marketing discussion and decision because channel and distribution effect product price and promotion decision. The marketing executive must undertake the following task:

• He must undertake the retail and wholesale markets and types of middleman available
in both.

• He must understand the channels. • He must select the general channel to be used. • He must make a decision regarding the intensity of distribution. • He must select the specific firms which will handle his products. • He must determine the methods and procedures. MARKET SCHEDULE
The complete year had been divided into 4 Quarters as follows First Quarter Second Quarter Third Quarter Fourth Quarter January April July October to to to to March June September December

ASSESSMENT OF MARKET POTENTIAL
48

The company is following a unique procedure to assess the market potential. According to that the following will be highly considered. • • • • • • • • • • Every dealer survey Channel assessment FMCG and Village penetration Chilled availability Market share Per capital consumption VPO (Volume Per Outlet) PPO (People Per Outlet) Effect of promotions CAGR (Compound Annual Growth Rate)

EFFECTIVE ROUTES Objectives of effective route planning

Minimization of unproductive driving time in order to maximize the time of the sales force. To attain the required frequency of service to the outlets.

ROUTE KEY INDICATORS
To plan and supervise the route more effectively the following route indicators should be focused. 1. Completed calls 2. Success rate 3. Cases sold daily 4. Stock return rate 5. Truck turn around
49

6. Merchandizing key indicators 7. Selling vehicle condition ITMO (In-trade merchandising opportunities) Times are In-trade merchandising opportunities. It is basically a concept used to know and rate the merchandizing performance of an outlet or a route individually on the basis of a certain defined set of parameters. ITMO scores based on five parameters, they are • • • • • Cooler purity Warm display Inside display Pos display Availability of different brand-pack

DISTRIBUTOR SELECTION CRITERIA
A distributor is an entity (business or individual) not directly owned by the Coca-Cola Company but provides customer services on behalf of the Coca-Cola system. The following should be observed in case of a distributor

• • • • •

Entrepreneurial ability High ethical standards Hard working Infrastructure Financial soundness

CREDIT WORTHINESS OF A DISTRIBUTOR
Credit worthiness can be evaluated by the 5 Cs. They are 1. Character
50

2. 3. 4. 5.

Capital/capacity to pay Credibility Capability Control

HOW TO OPERATE THE MARKET
The entire network of the Coca-Cola has been divided into various ways. The CocaCola has been doing the business in the form of direct distribution by way of the route trucks. The Coca-Cola has also an entire distribution that takes care of the stock points, which are in turn taken to be the part of the sales of the direct sales team. The direct sales team has to look into the sales of the company in both ways and the in-direct sales distribution has to be looked into the part of the company’s sales and it has to be streamlined into the sales of the company. The sales of the routes have been doing phenomenally well with the sales of 12,000 to 15,000 cases per week. The sales of last year have been increased to the extent of seven lakhs cases. That was the best ever sale of the company. The targets are fixed on daily basis, in the in-direct distribution , total sales of 15,000 cases being sold in the last week which was the highest but the sale has been restricted to few AMC’s which were performing phenomenally well. It has to be kept in mind that the sale of the company has to be the combined sale of the direct distribution and the in-direct distribution. When it comes to the direct distribution the cost have a great impact on the sale of the company. The cost factors like that of the:

1. Fuel cost 2. Cost of distribution 3. Salary of the salesmen 4. Go down rent 5. Maintenance Expenses 6. Salaries of the sales executives 7. Sales tax 8. Excise duty 9. Maintenance of the sales depot 10. Cost of procuring the glass (RGB)

AREA MARKETING CONTRACT
51

It is an agreement between the company and the retailer who has agreed to sell the product on behalf of the company in the market. AMC is the part and parcel of the company and it is one of the major contributors for the sale of the product. The agreement has to be signed by both the parties and it has to be produced by the retailer when it is to be shown.

WHY AREA MARKETING CONTRACTS?
There are many areas in the city, which have been left untapped by the soft drink. In order to have the sale of the product being felt in the remotest areas the Coca-Cola has decided to have the business in the form of the area-marketing contract (AMC). The soft drink industry has seen major changes in the era after liberalization. Even the remotest areas have seen the product being made available in all flavours in all the times. The inability of the companies truck being able to sell the product in the remotest areas and the inefficiency on the part of the sales truck to have their business being done on the areas where the sales is supposed to be high has made the need for the AMC felt more in the city. The reach of the company to have their products spread all over the city and then makes it available all the time and at an affordable price is the key to have the concept of AMC. The most important part of the need for the AMC is to have the credit being processed to the customers at their whims and fancies and at a very flexible credit holiday. The retailer being the closest they have an understanding with the customers and they even have the best of the relations, which is not possible for the company to have. The next idea is that the retailers have the closest relations with that of the customer and the sale of the product is possible only with the help of good relations. The product could be extended in the way the customers are. There are so many reasons that have to be dealt with the problem of AMC. They may be categorized into the following details: 1. High targets 2. High sales forecast 3. Customer credit demand 4. Enduring market potential 5. Attractive commission 6. Area proximity 7. Reach of the depot. The AMC’s that have come into the operation under the Coca-Cola region has been classified into three categories. These include category- A, B, and C. The basis for the classification and categorization is as follow:

52

1. Expected sales 2. Number of outlets 3. Area under consideration 4. Track record of the retailer 5. Credit worthiness Further more, these categories have been set targets to the tune of: Category-A: 15,000 Cases Category-B: 10,000 Cases Category-C: 6,000 Cases

BEST PRACTICES FOR DEOPT/GODOWN
• Stock rotation o Enforce FIFO o Ensure DOD and BBD stickers are in place • • • Stacking norms Handling over-aged products Storage guidelines

TOTAL PRODUCT MANAGEMENT
TPM is Total product management, is a tool that ensures that the quality of Coca-Cola products is consistently maintained till they reach the customer. It was developed by NutraSweet kelco company and the Coca-Cola company.TPM had been tried, tested and trusted by the Coca-Cola systems throughout multiple markets since

53

1988.It is a tool to manage the time and temperature exposure of Coca-Cola products, to WAREHOUSE provide the consume with the optimum taste experience.

PRODUCTION

COKE’S CHANNEL OF DISTRIBUTION

PRODUCTI ON

INTRANSIT

RETAIIL STOCK

ROUTE DISTRIBUTION

DISTRIBUTION WAREHOUSE

RETAIL SHELF

CONSUMER

ROUTES AND ITS SPREAD IN THE CITY
The entire route system has been designed in such a way that the entire city is covered and the sales are up to the expected levels. The route system has been one of the best proactive by the Coca-Cola. It has many benefits of the direct selling and the benefits can be understood in the chapter direct selling. Routes have been framed in such a way that the sales person is not made to do extra job. It shall keep the competitor out of the market, as it is the business of the first mover into the market. The sales executives are responsible for the entire sales to take place in an accepted and beneficial way which guide the sales of the route. The sales man has two loaders under him and it is with the help of these people the entire sales of the route takes place. The area sales manager will guide the collective efforts of the sales people and the sales executives. These sales of the city are looked by the ASM of city and the sales of the up country are taken care by the ASM that is responsible for the sales of the upcountry. The sales efforts so of these people are taken care by the sales manager and in turn looked after by the area general manager. This is the process guided by the corporate office. The sales of each route is taken up by the sales executive on a daily basis and the sales reports are delivered to the sales manager every day and on an hourly basis and it is up to the
54

discretion of the sales manager and the general manager to decide upon the sales targets of the sales executives and the decision are taken on minute-by-minute basis. The Coca-Cola routes have been divided on the basis of the geographical spread of the Visakhapatnam city and the regions near it. The entire city has been divided into 22 routes and 21 AMC’s. The upcountry has been divided into three districts and they may be Vizianagaram, Srikakulam and Anakapalli regions. The sales of the upcountry are taken care by the distributors appointed by the Coca-Cola. But the sales of the city have been divided through the following routes which have a very big say in the achievement of the greatest market share (72%) to that of the competitor. It is due to the existence of the large sales force and the system it carries. The route system is as follows:

RIGHT EXECUTION DAILY (RED)
This is a part of marketing execution. The RED was first introduced in the year of 2006 by Hindustan Coca- Cola Beverages Pvt. Ltd in Visakhapatnam.

55

This was

introduced in order to make their outlets attractive and impress the other

outlets. The marketing developers who will be under the guidance of executive trainer do this arrangement process. Marketing developers has to work as per the instructions of executive trainer. In this, these people will be allotted in the local area where some RED outlets and common outlets of Coca-cola are available. They have to visit the RED outlets to check the display of the outlets whether they are as per the instructions or not. In this process of arrangement the main role is played by the activation elements like SGA [SALES GENERATING ASSETS] like visicoolers, combo boards, tent cards etc which will help in increasing their sales as well as the business.

The company people mainly focus on the three types of outlets they are
• • • E&D (Eating &Drinking) Convenience Grocery

E & D:
E&D comes under immediate consumption outlets where the people come and have the drink and go away from there. There will be no chance for taking the drinks from there and consume it in future. Mainly Hotels, restaurants etc will come under this category where the people have to consume it on the spot only they have no chance to take drinks like 300ml, 600ml, 250ml and tins of different flavours that the company is providing to them.

CONVENIENCE:
These are just like E&D, the pan shop, milk booths etc come under this convenience category. They also should maintain different packs like 300ml, 600ml, 250ml etc. So, the consumers will have it on the spot and go away.

GROCERY:

56

The best outlet on which the company has to focus is grocery. It is a place where people purchase all the products, which are to be consumed in the future. There we have to maintain the packs like 1500ml and 600ml of all flavours. In this all the departmental stores, supermarkets etc come under this category. The next step is to maintain the activation elements. Again the 3 different outlets like E&D, grocery and convenience need to have different activation elements. In first stage like E&D should contain the activation elements like combo boards which defines a combination of edibles with soft drinks which comes in low cost. For example: Burger and Thums Up. • Tent cards display the special items that has prepared for that day which are provided by the company itself.

Flanges, Road stand, GSB are the things, which will resemble the products of the coke. The company itself provides these, where the glow signboards help in displaying the name of the outlets where it displays the graphics of the company also.

In the second stage, grocery should contain the activation elements like display racks with headers which will resemble the company name and the products of the company. This rack should be purely charged that means it should be purely filled by the products of the CocaCola Company only. There must be shelf display. It should contain minimum 12 bottles of 6.5ml and 1.5litres. Convenience is the next stage. This should contain elements like tabletop display because when one customer comes to the shop to purchase something, he should be able to know that the outlet contains this company product. The tabletops are especially given only for MAZAA. The last step in this is PRICE COMMUNICATION. There must be price communication chart in every outlet in a clear and visible manner. So, when a customer comes to purchase a product, he will be able to know what is the cost of the product, which he is going to purchase and whether he can afford or not. He can decide easily through this. The RED is a very good activity introduced by the company which will help customer, vendor as well as the company in many ways. Through this everyone will be benefited because the company can increase their sales, the vendor can make his shop look attractive and impress others whereas the customer will be aware of the product what he wants and its price.

57

58

ANALYSIS AND DATA INTERPRETATION 1. DIRECT MARKET 2. INDIRECT MARKET

DIRECT MARKET
1. RETAILERS BONDING WITH THE COCA-COLA PRODUCTS.
S. No No. of years the retailer selling soft drinks 1. <one year 7 7 No. of responses Percentage

59

2. 3. 4. Total
80 70 60 percentage 50 40 30 20 10 0

b/w 1 to 2 years b/w 2 to 3 years > 3 years

8 15 70 100
70

8 15 70 100

15 7 8

<one year

b/w 1 to 2 years

b/w 2 to 3 years

> 3 years

No.of years retailers selling soft drinks

INTERPRETATION:
From the survey, it has been found that the most of the retailers are loyal to the company for more than 3 years. Among the total outlets chosen for the study, 7% of the retailers are selling Coca-Cola products for less than one year and 8% between 1 to 2 years and 15% between 2 to 3 years and remaining 70% for less more than 3 years. Comparing with competitors, Coca-Cola Company has more customer loyalty.

2. RETAILER SATISIFACTION WITH THE COMPANY SERVICE. (Satisfaction level)
S. No 1. 2. 3. Classification of outlets Fairly satisfied Satisfied Not at all satisfied No. of responses 54 40 6 Percentage 54 40 6

60

Total
60 50 Percentage 40 30 20 10 0 Fairly satisfied Satisfied 40

100

100

54

6

Not at all satisfied

Retailers satisfaction with the company service

INTERPRETATION:
Most of the retailers are prefers for Coca-Cola products because; its order placing is relatively easy. The salesperson daily meets the retailer stores and identifies which products are they want and submits that information to the company, then company delivers immediately the products to the retail stores. That’s way 54% of the retailers are fairly satisfied, and40% are satisfied and 6% are not satisfied.

3. RETAILERS SALES FOR A YEAR.

S. No 1. 2. 3. 4.

Cases for year <200 200-500 500-800 >800

No. of responses 11 34 19 28

Percentage 11 34 19 28

61

Total
40 35 30 Percentage 25 20 15 10 5 0 <200 200-500 11 34

100

100

28

19

500-800

>800

Cases for year

INTERPRETATION:
From the survey, it has been found that most of the retailers of the company have sales in between 200 to 500 cases and greater than 800 cases per year. 11% of the retailers have sales less than 200 cases per year and 19% have sales in between 500-800 cases per year. By this, it is very clear that the Coca-Cola company has huge sales in direct market.

4.

SERVICE QUALITY OF THIS YEAR COMPARED TO LAST

YEAR.
S. No Quality of service provided by the company Increased Decreased Same as last year Total Percentage No. of responses 61 14 25 100 61 14 25 100

1. 2. 3.

62

70 60 50 Percentage 40 30 20 10 0

61

25 14

Increased

Decreased

Same as last year

Service quality compared to last year

INTERPRETATION: From the survey, it has been found that Coca-Cola Company’s service quality is good. 61% of the retailers felt that service quality of the company is increased when compared to last year and 14% felt service quality is decreased and remaining 25% felt same as last year. Most of the retailers said that the quality of the service provided by the company is good and increasing.

5. THE COMPANY’S INVOLVEMENT IN STOCK KEEPING BY RETAILERS.
S. No Involvement in stocking by the company 1. 2. Total Yes No 68 32 100 68 32 100 No. of responses Percentage

63

80 70 60 Percentage 50 40 30 20 10 0 involvement in stock taking Non-involvement in stock taking 32 68

INTERPRETATION:
It is found that the company is taking care in order booking of retailers. Among the total outlets chosen for the study, 68% retailers are satisfied with the company’s involvement in stock taking.

6. INFORMATION ABOUT SCHEMES BY THE COMPANY.

S. No 1. 2. 3. Total

Communication about schemes Yes No Sometimes only

No. of responses 80 11 9 100

Percentage 80 11 9 100

64

90 80 70 Percentage 60 50 40 30 20 10 0

80

11

9

Yes

No

Sometimes only

Schemes information to the retailers

INTERPRETATION: It has been revealed from the survey that the company’s communications about schemes are good. Among the total outlets chosen for the study, 80% of the retailers has been getting the information about schemes at right time.

7. RESPONSE OF THE AGENT.

S. No

Response of the agent

No. of responses

Percentage

1. 2. 3.

Good Bad Need more response

64 13 23

64 13 23

65

Total

100

100

70 60 50 Percentage 40 30 20 10 0

64

23 13

Fairly satisfied

Satisfied

Not at all satisfied

Replacements for the damaged stock

INTERPRETATION:
Most of the retailers said that they have a very good relationship with the company’s agent. Among the total outlets chosen for the study, 64% retailer relationship with the agent is good, 13% are bad and 23% retailers seeking for more response from agents.

8. REPLACEMENT/COMPENSATION OF THE DAMAGED STOCK (Satisfaction level)

S. No 1. 2. 3. Total

Replacement of the damaged stock Fairly satisfied Satisfied Not at all satisfied

No. of responses 29 48 23 100

Percentage 29 48 23 100

66

60 50 Percentage 40 30 20 10 0 Fairly satisfied Satisfied Not at all satisfied Replacement of the damaged stock 29 23 48

INTERPRETATION:
Most of the retailers said that they are satisfied with replacement/compensation provided by the company for the damaged stock. Among the total outlets chosen for the study, 48% retailers are satisfied with replacements of the company and 29% are fairly satisfied and remaining 23% are asking for better replacement strategies.

9. STOCK AVAILABILITY VS REQUIREMENTS. (Satisfaction level)

S. No

Are you getting stocks as per requirements

No. of responses

Percentage

1. 2. Total

Yes No

79 21 100

79 21 100

67

90 80 70 Percentage 60 50 40 30 20 10 0

79

21

Yes

No

Stock availability Vs requirement

INTERPRETATION:
It has been found that the product is readily available in the market for immediate purchase and compensation. Company’s production plans and future estimation of demand calculation and distribution channels are satisifactory.79%of the retailers agree with availability of stocks.

10. SERVICE FREQUENCY OF HCCB
S. No 1. 2. 3. 4. Total
68

Service frequency of HCCB Daily Alternate days Once in a week On demand

No. of responses 61 25 7 7 100

Percentage 61 25 7 7 100

70 60 50 Percentage 40 30 20 10 0

61

25

7

7

Daily

Alternate days

Once in a week

On demand

Service frequency of HCCB

INTERPRETATION:
Coca-Cola Company has introduced “RED” (right execution daily) concept, it is to measure the service quality given by the retailers. From the survey it has been found that the service frequency of coke is good for most of the retailers and it is daily for them. i.e., 61% of the retailers are getting the service daily and 25% in alternative days.

11. DIFFERENCE IN SUPPLY BETWEEN ON-SEASION & OFFSEASION.

S. No

Difference b/w on-season & offseason

No. of responses

Percentage

1. 2. Total

Yes No

22 78 100

22 78 100

69

90 80 70 Percentage 60 50 40 30 20 10 0 Yes 22

78

No

Difference b/w on-season & off-season

INTERPRETATION:
It has been found that the product is readily available in the market for immediate purchase and consumption even in on-season or off-season. 78% of the retailers are satisfied with product availability in both on-season & offseason.

12. MOST SELLING BRANDS OF COCA-COLA.
S. No 1. 2. 3. 4. 5. Total Most selling brand Fanta Thumps up Limca Maaza Sprite No. of responses 12 49 24 18 8 100 Percentage 12 49 24 18 8 100

70

60 50 Percentage 40 30 20 10 0 Fanta Thumps up Limca Maaza Sprite Most selling brands of HCCB 24 18 12 8 49

INTERPRETATION:
It has been found from the survey that thums up has more sales among all other CocaCola brands in the direct market. Among the total outlets chosen for the study, thums up has 49% sales and limca 24% and maaza 18% and fanta 12% and 8% is sprite.

13. REASONS FOR OPTING COKE PRODUCTS IN THE OUTLET.

S. No 1. 2. 3. 4. Total

Reasons for opting coke products in the outlet Product demand Service quality Profit margin Other

No. of responses 78 11 5 6 100

Percentage 78 11 5 6 100

71

90 80 70 Percentage 60 50 40 30 20 10 0

78

11

5 Profit margin

6

Product demand

Service quality

Other

Reasons for opting Coac-Cola

INTERPRETATION:
From the study, it will be easily understood that retailers like to carry Coca-Cola products because of its demand and service quality. This statement is given by the Retailer. That’s way most of the retailers 78% preferring Coca-Cola products because of their demand and 11% because of its service quality, 5% because of its profit margin and remaining peoples 6% are with other reasons.

14. DRAWBACKS IN THE DISTRIBUTION OF COKE PRODUCTS.

S. No

Draw backs in distribution of coke products Late delivery Ineffective stock enquiry Immediate payment No drawbacks

No. of responses

Percentage

1. 2. 3. 4. Total

8 4 14 72 100

8 4 14 72 100

72

80 70 60 Percentage 50 40 30 20 10 0 Late delivery Ineffective stock enquiry Immediate payment 8 4 14

72

No drawbacks

Drawbacks in the distribution of Coke

INTERPRETATION:
It is found that the biggest drawback with the distribution of coke, it involves immediate payment (no credit facility). 72% of the retailers said coke distribution was good they have no draw back, 14% of the retailers are feeling immediate payment as a drawback. 4% are feeling Ineffective stock enquiry and 8% felling late deliveries are drawbacks for the distribution.

15. RETAILER AWARENESS ABOUT THE RED CONCEPT PROMOTED BY THE COMPANY.
S. No Retailer awareness about the RED concept 1. 2. Total Yes No 64 6 70 91.4 8.6 100 No. of responses Percentage

73

100 90 80 70 Percentage 60 50 40 30 20 10 0

91.4

8.6

Yes

No

Retailers awareness about RED concept

INTERPRETATION:
It is found that most of the retailers knew about the RED concept promoted by the company. This again proves that the company has been maintaining effective communication.91.4% of retailers aware of the RED concept, 8.6% retailers not aware of the RED concept.

INDIRECT MARKET
1. RETAILERS BONDING WITH THE COCA-COLA PRODUCTS.
S. No No. of years the retailer selling soft drinks 1. 2. 3. <one year b/w 1 to 2 years b/w 2 to 3 years 6 11 8 6 11 8 No. of responses Percentage

74

4. Total
80 70 60 Percentage 50 40 30 20 10 0

> 3 years

74 100
74

74 100

6

11

8

<one year

b/w 1 to 2 years

b/w 2 to 3 years

> 3 years

No.of years selling soft drinks

INTERPRETATION:
From the survey, it has been found that the most of the retailers are loyal to the company for more than 3 years. Among the total outlets chosen for the study, 6% of the retailers are selling Coca-Cola products for less than one year and 11% between 1 to 2 years and 8% between 2 to 3 years and remaining 74% are for more than 3 years. Comparing with competitors, Coca-Cola has more customer loyalty.

2. RETAILER SATISIFACTION WITH THE COMPANY SERVICE (Satisfaction level)
S. No 1. 2. 3. Total Classification of outlets Fairly satisfied Satisfied Not at all satisfied No. of responses 27 70 3 100 Percentage 27 70 3 100

75

80 70 60 Percentage 50 40 30 20 10 0 Fairly satisfied 27

70

3 Satisfied Not at all satisfied

Retailers satisfaction with company service

INTERPRETATION:
Most of the retailers prefer for Coca-Cola products because; its order placing is relatively easy. The salesperson daily meets the retail stores and identifies which products are they want and submits that information to the company and then company delivers the products immediately to the retail stores. That’s way 27% of the retailers are fairly satisfied, and 70% are satisfied.

3. RETAILERS SALES OF THE YEAR.

S. No 1. 2. 3. 4. Total

Cases for year <200 200-500 500-800 >800

No. of responses 21 46 17 16 100

Percentage 21 46 17 16 100

76

50 45 40 35 Percentage 30 25 20 15 10 5 0 <200 21

46

17

16

200-500

500-800

>800

cases for year

INTERPRETATION:
From the survey, it has been revealed that most of the retailers in the in-direct market are selling nearly 500 cases per year. 16% of retailers have sales more than 800 and remaining 17% have sales between 500800 cases per year. 67% of the retailers in the in-direct market are selling nearly 500 cases per year.

4. SERVICE QUALITY OF THIS YEAR COMPARED TO LAST YEAR.

S. No

Quality of service provided by the company

Percentage No. of responses

1. 2. 3.

Increased Decreased Same as last year Total

60 6 34 100

60 6 34 100

77

70 60 50 Percentage 40 30 20 10 0 Increased Decreased Same as last year sercvice quality compared to last year 6 34 60

INTERPRETATION: From the survey, it has been found that Coca-Cola Company’s service quality is good. 60% of the retailers felt that service quality is increased when compared to last year and 6% felt service is decreased and remaining 34% felt that it is same as last year. Most of the retailers said that the quality of the service provided by the company is good and increasing.

5. THE COMPANY’S INVOLVEMENT IN STOCK KEEPING BY RETAILERS.

S. No

Involvement in stocking by the company

No. of responses

Percentage

1. 2. Total

Yes No

79 21 100

79 21 100

78

90 80 70 60 Percentage 50 40 30 20 10 0 Involvement in stock taking Non-invovement in stock taking 21 79

INTERPRETATION:
It has been found that the company is taking a good care in order booking by retailers. Among the total outlets chosen for the study, 79% retailers are getting suggestions from the company.

6. INFORMATION ABOUT SCHEMES BY THE COMPANY.

S. No 1. 2. 3. Total

Communication about schemes Yes No Sometimes only

No. of responses 55 22 23 100

Percentage 55 22 23 100

79

60 50 Percentage 40 30 20 10 0

55

22

23

Yes

No

Sometimes only

Schemes information to the retailers

INTERPRETATION: It has been revealed from the survey that the company’s communications about the schemes are good and it should be improved. Among the total outlets chosen for the study, 55% of the retailers are getting the information about schemes at right time.

7. RESPONSE OF THE AGENT.

S. No

Response of the agent

No. of responses

Percentage

1. 2. 3.

Good Bad Need more response
80

69 2 29

69 2 29

Total
80 70 60 Percentage 50 40 30 20 10 0 Good Bad 2 69

100

100

29

Need more response

Response of agents/M.D's

INTERPRETATION:
Most of the retailers said that they have very good relationship with the company’s agent. Among the total outlets chosen for the study, 69% retailer relationship with the agent is good, 2% are bad and 29% retailers seeking for more response from agents.

8. REPLACEMENT/COMPENSATION OF THE DAMAGED STOCK (Satisfaction level)

S. No 1. 2. 3. Total

Replacement of the damaged stock Fairly satisfied Satisfied Not at all satisfied

No. of responses 26 58 16 100

Percentage 26 58 16 100

81

70 60 50 Percentage 40 30 20 10 0 Fairly satisfied Satisfied Not at all satisfied replacement for the damaged stock 26 16 58

INTERPRETATION:
Most of the retailers said that they are satisfied with replacement/compensation provided by the company for damaged stock. Among the total outlets chosen for the study, 58% retailers are satisfied with replacements of the company and 26% are fairly satisfied and remaining 16% are not satisfied. It explains that most of the retailers in the in-direct market are satisfied with the replacement strategy of Coca-Cola Company.

9. STOCK AVAILABILITY VS REQUIREMENT. (Satisfaction level)

S. No

Are you getting stocks as per requirements

No. of responses

Percentage

1. 2. Total

Yes No

92 8 100

92 8 100

82

100 90 80 70 Percentage 60 50 40 30 20 10 0

92

8

Yes

No

Stock availability Vs requirement

INTERPRETATION:
It has been found that the products are readily available in the market for immediate purchase and consumption. Company’s production plans and future estimation of demand calculation and distribution channels are satisfactory. 92%of the retailers agree with availability of stocks.

10. SERVICE FREQUENCY OF HCCB.
S. No 1. 2. 3. 4. Total Service frequency of HCCB Daily Alternate days Once in a week On demand No. of responses 89 8 1 2 100 Percentage 89 8 1 7 100

83

100 90 80 70 Percentage 60 50 40 30 20 10 0

89

8 1 Daily Alternate days Once in a week

7

On demand

Service frequency of HCCB

INTERPRETATION:
Coca-Cola Company has introduced “RED” (right execution daily) concept, it is to measure the service quality given by the retailers. From survey it has found that the service frequency by coca-Cola company is good for most of the retailers and it is daily for them. 89% of the retailers are getting the services daily and 8% in alternative days.

11. DIFFERENCE IN SUPPLY BETWEEN ON-SEASION & OFFSEASION.

S. No

Difference b/w on-season & offseason

No. of responses

Percentage

1. 2. Total

Yes No

13 87 100

13 87 100

84

100 90 80 70 Percentage 60 50 40 30 20 10 0 Yes 13

87

No

Difference b/w on-season & off-season

INTERPRETATION:
It has been found that the product is readily available in the market for immediate purchase and consumption even in on-season or off-season. In both on-season and off-season, 87% of the retailers are satisfied with product availability and 13% retailers are not satisfied.

12. MOST SELLING COCA-COLA BRANDS.
S. No 1. 2. 3. 4. 5. Total Most selling brand Fanta Thumps up Limca Maaza Sprite No. of responses 14 24 35 5 20 100 Percentage 14 24 35 5 20 100

85

40 35 30 Percentage 25 20 15 10 5 0 Fanta Thumps up 14 24

35

20

5

Limca

Maaza

Sprite

Most selling brands of Coca-Cola

INTERPRETATION:
It has been found from the survey that limca has more sales among all other Coca-Cola brands in the in-direct market. Among the total outlets chosen for the study, the sales of limca is 35%, 24% thums up, 5% maaza and 14% fanta and remaining 20% sprite.

13. REASONS FOR OPTING COKE PRODUCTS IN THE OUTLET.
S. No 1. 2. 3. 4. Total Reasons for opting coke products in the outlet Product demand Service quality Profit margin Other No. of responses 78 14 5 3 100 Percentage 78 14 5 3 100

86

90 80 70 Percentage 60 50 40 30 20 10 0

78

14 5 Product demand Service quality Profit margin 3 Other

Reasons for opting Coca-Cola

INTERPRETATION:
From the study, it will be easily understood that retailers like to carry Coca-Cola products because of its demand and service quality. This statement is given by the Retailer. 78% retailers prefer Coca-Cola products because of their demand and 14% by its service quality, 5% by its profit margin and remaining peoples 3% are with other reasons.

14. DRAWBACKS IN THE DISTRIBUTION OF COKE PRODUCTS.

S. No

Draw backs in distribution of coke products Late delivery Ineffective stock enquiry Immediate payment No drawbacks

No. of responses

Percentage

1. 2. 3. 4.

2 7 6 85

2 7 6 85

87

Total
90 80 70 Percentage 60 50 40 30 20 10 0 Late delivery Ineffective stock enquiry 2 7 6

100
85

100

Immediate payment

No drawbacks

Drawbacks in the distribution of coke

INTERPRETATION:
It has been found that the biggest drawback with the distribution of Coca-Cola is, it involves immediate payment (no credit facility). 85% of the retailers said Coca-Cola distribution is good and they have no draw back, 6% of the retailers are feeling immediate payment as a drawback. 7% are feeling Ineffective stock enquiry and 2% felling late deliveries are drawbacks for the distribution.

15. RETAILER AWARENESS ABOUT THE RED CONCEPT PROMOTED BY THE COMPANY
S. No Retailer awareness about the RED concept 1. 2. Total Yes No 40 10 50 80 20 100 No. of responses Percentage

88

90 80 70 Percentage 60 50 40 30 20 10 0

80

20

Yes

No

Retailers awareness about RED concept

INTERPRETATION:
It has been found that most of the retailers knew about the RED concept promoted by the company. This is again proves that company has been maintaining effective communisation. 80% of retailers are aware of the RED concept, 20% retailers are not aware of the RED concept.

89

FINDINGS SUGGESTIONS

FINDINGS

Coca-Cola Company has more customer loyalty both in direct and in-direct markets. It has been found that 70% of retailers in direct market and 74% of retailer in in-direct are loyal to the Coca-Cola company for more than 3 years.

The sales person daily visits the retail stores and identifies their product requirement and then submits that information to the company. That’s why 54% retailers are satisfied in direct market and 70% in the in-direct market are satisfied with the company’s involvement in stocktaking by retailers.

90

Coca-Cola Company’s service quality has been improved when compared to last year. 61% of the retailers in the direct market and 60% of the retailers in the in-direct market are felt increase in the service.

Retailers are very mush satisfied with the communication about schemes. 80% of the retailers in direct market are felt happy with the company’s communication about schemes. But company’s communication is not effective in the in-direct market.

The agents are responding very well to the problems of retailers.64% of the retailers in the direct market are happy with the response of the agent where as 69% in the in-direct market.

Retailers

are

not

much

satisfied

with

the

company’s

strategies

for

replacement/compensation for damaged stock. Only 29% retailers in the direct market and 26% retailers in the in-direct market.

The Coca-Cola products are readily available in the market for immediate purchase and consumption.79% of the retailers in the direct market are getting products as per requirement where as 92% in the in-direct market.

In the indirect market service frequency is high compared to the direct market. It is daily for 61% of the retailers in the direct market where as 89% in the in-direct market.

There is no much difference in the supply in on-season and off-season in both direct and in-direct markets.

Because of the huge demand most of the retailers are opting for Coca-Cola products. It is the word of retailers in both direct and in-direct market.

Some of the retailers in direct are felling immediate payment as drawback, but not in the in-direct market.85% retailers in the in-direct market happy with the existing company performance and 72% in the direct market.

The retailers in the direct market are better aware of the RED concept promoting by the company. 91.4% of the retailers in the direct market aware of RED concept and 80% in the in-direct market.

The availability of the coke products is good in the segments like high and medium income areas, where the outlets can manage stocks as there are good sales.
91

Due to strict vigilance, complaints have been rectified very quickly. Few of the retailers are not rewarded with the schemes. The RED (Right Execution Daily) making service more effective. And most of the retailers in the direct and indirect are aware of it.

• •

The company has a wider scope to increase its distribution further in the outskirts of the city.

The most preferred brands of Hindustan Coca-Cola Company are Thums up, Maaza, Sprite. The preference rate of these drinks is more than other brands of Coca-Cola Company.

The company is promoting latest techniques in order to get effective output in case of administration, marketing, production, employee welfare management, etc.

Regular auditing of the channels of distribution is happening but the results are less supportive.

Hindustan Coca-Cola Beverages private limited is following selections approach in distribution.

Pre-selling concept was introduced Coca-Cola in January 2009. It was successfully in all the markets. The concept of pre-selling is to supply the stocks as per requirement.

92

SUGGESTIONS

Retailers must be made clearly aware of the various schemes and promotional activities of Coca-Cola Company in detail.

Company should exercise for better for replacement/compensation strategy for the damaged stocks.

• • •

Company’s communication about schemes in the indirect is should be improved. As the company has more customer loyalty it should exercise on maintaining them. Performance reviews should be proper so as to make the MD’s (market developers) and sales persons perform better.

The company should quickly respond to the complaints and problems of the retailers, to improve its relationship and provide confidence among the retailers.

93

Enough stock should be maintained in the peak seasons within the city as if there is any problem at the production unit, demand can be satisfied.

A proper uniform should be provided to the MD’s as they visit the outlets regularly and will create a good impact.

Necessary support should be provided to the outlets to transform from normal to the exclusive units or RED units.

Monitoring or visiting the market should be done on daily basis to fill up the gaps in order to attain the objectives effectively.

• •

Credit policy should be introduced for better sales. Incentives on target achievement should be increased to both retailers/outlets and to the distributors.

• •

Warm display should be maximized. Training must be given to the intermediaries and employees to overcome the cola controversies, etc.

Provide extra suitable racks for warm display of stocks.

ANNEXURE-1 QUESTIONNAIRE
NAME OF THE DISTRIBUTOR (OR) RETAILER:
…………………………………………………………………………………………………

ADDRESS: …………………………………………………………………………………
………………………………………………………………………………………………..

CONTACT NO.: …………………………………………

1. Type of outlet.

94

A. Whole seller

[

]

B. Retailer

[

]

2. Since how many years the retailer selling the soft drinks. A. < one year C. b/w 2 to 3 years [ [ ] ] B. b/w 1 to 2 years D. >3 years [ [ ] ]

3. By which channel the retailer is being served. A. Direct supply [ ] B. Indirect channel [ ]

4. Retailer satisfaction with the service. A. Fairly satisfied [ ] ] B. Satisfied [ ]

C. Not at all satisfied [

5. How many cases you will sell for year. A. <200 C.500-800 [ [ ] ] B.200-500 D. >800 [ [ ] ]

6. Service of this year compared to last year. A. Increased [ ] B. Decreased [ ]

C. Same as last year []

7. How do you get the stocks? A. Pre-selling [ ] B. Manual selling [ ]

8. How do you purchase stock from company? A. Credit [ ] B. Cash [ ]

95

9. Have you ever got suggestions for stock keeping from company? A. Yes [ ] B. No [ ]

10. Are you being informed about all the schemes by the salesmen or pre-seller? A. Yes C. Sometimes only [ [ ] ] B. No [ ]

11. Response of distributors or the agent A. Good in response [ ] Need more response from them [ B. Badly responding [ ] ] C.

12. Replacement /compensation of the damaged stock. A. Fairly satisfied [ C. Not at all satisfied [ ] ] B. Satisfied [ ]

13. Whether you are getting the stocks as per requirements? A. Yes [ ] B. No [ ]

14. Service frequency of HCCB. A. Daily C. Once in a week [ [ ] ] B. Alternative day D. On demand [ [ ] ]

15. Difference in supply between on-season & off-season. A. Yes [ ] B. No [ ]

16. Which of our brand have more sales in your outlet. A. Coca-Cola C. Fanta [ [ ] ] B. Thums up D. Limca [ [ ] ]

96

E. sprite

[

]

F.maaza

[

]

17. Reasons for opting coke products in the outlet. A. Product Demand Profit margin [ [ ] ] B. Good service [ D. Others ………………… ] C.

18. Drawback in the distributor of coke products. A. Late delivery [ ] ] B. Ineffective stock enquiry [ D. No drawback [ ] ]

C. Immediate payment [

19. Retailer awareness about the RED CONCEPT promoted by the company. A. Yes [ ] B. No [ ]

20. Are you getting the stock as per your order give to the pre-seller. A. Yes [ ] B. No [ ]

21. Any suggestion for goods supply …………………………………………..

BIBLIOGRAPHY

• • • •

Marketing Management-Philips Kotler Marketing Management-Ramaswamy Fundamentals of Marketing-William J Stanton Sales management-Richard R Still

Websites
www.cocacola.com

97

www.cokeinindia.com

News paper
• • • • The Hindu The Economic Times Eenadu Business Today

98

Sign up to vote on this title
UsefulNot useful