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GAUHATI UNIVERSITY

A Training Report submitted in partial fulfillment of the requirements for the award of Degree of the Bachelor of Business Administration (Industry Integrated Program), Gauhati University on

IMPACT OF RED SCORE ON SALESMANs PERFORMANCE At COCA COLA COMPANY LIMITED

Under Organizational Guidance of Mr. Praveen Kumar Coco-cola co ltd Visakhapatnam

Under Institutional Guidance of Ms M. Sindhura MARKTNG Faculty, Visakhapatnam

Prepared and Submitted By ARUN JHAWAR BBA V Semester Registration No. 09-02-0001

SUN INSTITUTE OF TECHNOLOGY AND MANAGEMENT

CERTIFICATE
This is to certify that Mr.ARUN JHAWAR a student of Sun Institute of Technology and Management has prepared her training report, entitled IMPACT OF RED SCORE ON SALESMAN PERFORMANCE at COCOCOLA COMPANY LIMITED, Visakhapatnam under my guidance. He has fulfilled all requirements under the regulations of the BBA (IIP) Gauhati University, leading to the BBA (IIP) Degree. This work is the result of his own investigation and the project, neither as a whole nor any part of it was submitted to any other University or Educational Institution for any research or diploma.

CERTIFICATE
This is to certify that Mr.ARUN JHAWAR a student of Sun Institute of Technology and Management has prepared her training report, entitled IMPACT OF RED SCORE ON SALESMAN PERFORMANCE at COCOCOLA COMPANY LIMITED, Visakhapatnam under my guidance. He has fulfilled all requirements under the regulations of the BBA (IIP) Gauhati University, leading to the BBA (IIP) Degree. This work is the result of his own investigation and the project, neither as a whole nor any part of it was submitted to any other University or Educational Institution for any research or diploma.

I wish him all success in life.

Ms. M.Sindhura Faculty Guide, SITAM

Mr. Ch. Raghuram Head of Department, SITAM

DECLARATION
I hereby declare that the Training Report conducted at COCA-COLA COMPANY LIMITED VISAKHAPATNAM ON IMPACT OF RED SCORE ON SALESMANs PERFORMANCE UNDER THE GUIDANCE OF Ms. M.Sindhura

Submitted in partial fulfillment of the requirements for the Degree of BACHELOR OF BUSINESS ADMINSTRATION (Industry Integrated Program) TO GAUHATI UNIVERSITY, GUWAHATI Its my original work and the same has not been submitted for the award of any other Degree/diploma/fellowship or other similar titles or prizes.

PLACE: DATE:

ARUN JHAWAR. REG. NO. 09-02-0001 BBA (2009-2012)

ACKNOWLEDGEMENT
I render my sincere thanks to Mr.Praveen Kumar of COCA-COLA COMPANY LIMITED, VISAKHAPATNAM for giving us an opportunity of doing the project work in this esteemed organization. I am thankful to Mr. Srikanth Jasti (CMD), Mrs. Asha Jasti (ED), Mr. Ch. Raghuram (HOD) and Ms. M.Sindhura (Faculty Guide) of Sun Institute of Technology and Management, Visakhapatnam for their valuable support extended during the project. As a token of my gratitude, I would like to acknowledge special thanks to the Faculty members of Sun Institute of Technology and management for guidance and support extended throughout the period of study. I would like to acknowledge my sincere thanks to all for their encouragement throughout the academic period

. ARUN JHAWAR Reg. No. 09-02-0001

CONTENTS:
CHAPTER 1
1.1 1.2

INTRODUCTION

General Introduction about the sector. Industry Profile. a. Origin and development of the industry. b. Growth and present status of the industry. c. Future of the industry.

CHAPTER 2
2.1 2.2 2.3 2.4 2.5

PROFILE OF THE ORGANIZATION

Origin of the Organization. Growth, development and present status of the organization Organization structure and organizational chart. Product and Service profile of the Organization Competitors. Market profile of the Organization.

CHAPTER 3
3.1 3.2

DISCUSSIONS ON TRAINING

Students work profile (Roles & responsibilities) Key learning from training.

CHAPTER 4
4.1 4.2 4.3

STUDY OF SELECTED RESEARCH PROBLEM

Statement of research problem. Statement of research objectives. Research design and methodology.

CHAPTER 5
5.1 5.2

ANALYSIS

Analysis of data. Summary of Findings.

CHAPTER 6
6.1 6.2

SUMMARY AND CONCLUSIONS

Summary of Learning Experience. Conclusions and Recommendations.

APPENDICIES BIBLIOGRAPHY

CHAPTER - 1 INTRODUCTION

Indian FMCG Industry Introduction The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organized and unorganized. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented. The FMCG industry, or alternatively named CPG, abbreviation for Consumer Packaged Goods, deals mainly with the production, distribution as well as marketing of packaged goods for all consumers. The Fast Moving Consumer Goods (FMCG) has to do with those consumables which are regularly being consumed. Among the first activities of the FMCG industry there is selling, marketing, financing, purchasing, and so on. Recently this industry has also launched in operations, supply chain, production, general management, etc.

Industry Classification The FMCG industry is volume driven and is characterized by low margins. The products are branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. The FMCG segment can be classified under the premium segment and popular segment. The premium segment caters mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the popular segment have considerably lower prices than their premium counterparts. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged

food by 2010, India needs around US$ 28 billion of investment in the foodprocessing industry. Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector. Following are the segment-wise product details along with the major players:

CHAPTER - 2 PROFILE OF THE ORGANIZATION

2.1 ORIGIN OF THE ORGANIZATION. On May 8, 1886, Atlanta druggist Dr.John Styth Pemberton (Former Confederate officer) invented Coca-Cola syrup. It was mixed in a 30-gal grass kettle hung over a backyard fir. It was marked as a brain and nerve tonic in drugstores. Styth sold the drink in a mug carried it al the way down to Jacob Pharmacy. The drink was sold for five cents per mug and the sales of this tonic were doing a phenomenal job and that was the beginning of the great Coca-Cola. Sales averaged nine drinks per day and people were very eager to taste it because of its taste that was different from that of the other tonics. The world has changed in many ways since pharmacist: JOHN STYTH PEMBERTON first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. However, the pure and simple magic of one thing remains the same Coca-Cola. The name and the product mean so many good things to hundreds of millions of consumers around the globe. Coca-Cola products are served more than 705 million times every day, quenching the thirsts of consumers in more than 195 countries in every climate. Thats a long way to come after such a modest beginning on May 1886. Pemberton concocted caramel-colored syrup in a threelegged brass kettle in his backyard. He first distributed the now product by carrying Coca-Cola in a jug down the street to Jacobss pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design or accident, carbonated water was teamed with the near syrup, producing a drink that was proclaimed Delicious and Refreshing. Dr.Pembertons partner and bookkeeper, Frank M.Robinson, suggested the name and penned, in the unique flowing script that is famous worldwide today. In 1886, sales of Coca-Cola averaged nine drinks per day. That first year, Dr.Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the No.1 soft drink brand ever since. For his efforts, Dr. Pemberton grossed $50 and spend $73.96 on advertising. The Atlanta (US) based $ 18.55 billion; the Coca-Cola Company is a transnational gain operating in the soft drinks and related business. It enjoys the strongest brand awareness in the

world and its flagship brand Coca-Cola (Coke) is consumed by the young and the old alike across nations. Financial institutions, employees and the general public hold the company shares with no single entity enjoying a majority stake. At present, Mr.M Douglas Ivester, Chairman BoD and CEO head the company.

MISSION
The Coca-Cola Companys first and foremost responsibility is towards its shareholders. The company defines its mission in the following words We exist to create value for our shareowners on a long-term basis. According to the company When we create value for our customers, we create preference for our products and our company and ultimately value for our share owners.

2.2 GROWTH AND PRESENT STATUS OF THE INDUSTRY


THE COCA-COLA QUALITY SYSTEM
Quality is more than just something we taste or see or measure or manage. Quality shows it. The companys quality system can be stated in 3 broad principles. Principle 1: The symbol of quality Every thing associated with the trademarks of Coca-Cola Company reflects the companys position of leadership & quality. Principle 2: Customer & 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. The Coca-Cola Company is a responsible corporate citizen is all activities associated with its products and trademarks. The decentralized operating philosophy is the foundation for the companys past and future success. It operates in markets with dramatically different consumer preferences, economic conditions, product delivery systems, retail trade customers,

environmental regulations and market place opportunities. Within this decentralized structure, the local managers make decisions based on the specific opportunities available in their markets. The companys commitment to the local community ensures that they hire work reflects the diversity of the local consumers and customers the decentralized operating culture allows the company to recognize trends in consumer preference sand to respond with appropriate brand and package combinations. It is this marketplace focus has enabled the companys core brands to consistently rank among the top performing soft drinks in the world. Their investments in people, information systems, and technology have created a resource base not easily matched by the competitors COCA-COLA INTO INDIA Coca-Cola first entered India during the 1970s. However adverse political climate forced the company to call off its operations in India. It later staged a comeback when the liberalizations wave swept through the country. Its world wise archrival Pepsi had already entered India and had carves out a reasonable market share. The company also had to contend with the top Indian grand in beverages-Parles soft drinks, which had powerful brands like Thums Up, Limca, Gold Spot, Citra and Maaza. The Parle products alone made up to 69% of the total market. Coca-Cola India entered into a strategic alliance with Parle soft drinks so as to take advantage of the latters wide distribution network and large number of bottling units spread across the length and breadth of the country. Gradually the company bought out all the Parle brands including the leading brand Thums Up. Today the products of Coca-Cola India are Coke, Thums Up, Fanta, Limca, Citra (Which is slowly being replaced by Sprite), Maaza (a fruit juice and Kinley soda). These are marketed through 300 ml bottles, 1 liter bottles, 1.5 liter Pet bottles, fountains and cans. Coca-Cola India faces stiff competition from arch rival Pepsi Company India which has products like Pepsi, Mirinda, 7up, Slice & Dukes soda. It also faces some competition from brands like Crush and Canada Dry which are owned by Cadbury Schweppes. Coca-Cola India has floated two subsidiaries-Bharat Coca-Cola and Hindustan CocaCola, which act as holding companies for most of its bottling operations. This gives the transnational ownership and control over this crucial pact of its operations. When Coca-Cola first

entered India, it conducted its operations through franchised bottling units. The company is now acquiring full financial and operational control of these units. After the exit of the Coca-Cola in 1977 from India, Parle has established its reign over the Indian soil and has been flourishing since, in leaps and bounds. Ramesh Chauhan and Prakash Chauhen were steering the phenomenal brands like Thums Up, Limca, Citra, Gold Spot etc., Soft drink industry was reined by these wizards for a period of two decades. In the 1990s came the era of changes, LPG opened up the gates for the gates to flood with the competencies. Coca-Cola re-entered in India in the year 1993, yet another time. Prior to the entry to Coca-Cola, Pepsi was doing a big business and has been eating the biggest pie of the cake every now and then. It had already established its base and had a firm hold in the market, things were a big mess for the Coca-Cola, and it had to start all the way again from the word go, its sail was the toughest and had to bend its back like how Beckham does when he is in the midst of the practice. Three years after the return to India, the real thing was not happening and was not proving to be the choice of the new generation. It was being forced to share shelf space and fridge space equally with its archrival. As far as mind space is concerned it was the Pepsi way all the way. The fizz has gone, in a word, flat. Coca-Cola had also got the basis of the bottling strategy rooted, as its global competitive advantage has some of proof of its vast competencies. But here all was wrong with the supply chain failing to deliver CEO No.1, Jayadev Raja and Richard Nicholas has failed to deliver. Then entered, Donald Short, a 45 year old Coke lifer, air lifted from his assignment in Japan to take Coke back where it believes, it belongs to ahead of Pepsi Co. Hid mandates reestablish Coca-Cola on the marketing landscape. Strategy, operations and partner management not people. Processes or even profits, short had gone into minute of selling and created a template called the five steps of selling process during his tint in Japan, come to India with the tag line do the right thing and a vision that encompassed two objectives; adaptability and a comprehension of the needs of the constituents in the Coca-Cola system. Coca-Cola has also integrated its bottling operations: 40 of the companies & 54 bottlers have either signed up a joint venture partnership or sold out, to finance these acquisitions, the

setting up of four regional anchor-bottlers and the aggressive marketing thrust Coca-Cola has planned its Atlanta plant to invest $550 million in India.

2.2 PRESENT STATUS OF THE ORGANIZATION The organization study was conducted at Bharat Coca-Cola Bottling Southeast Pvt. Ltd; which came into being when VBC Industries (which was a franchised bottling unit) was acquired by Coca-Cola India on 10th Oct, 1998. Vizianagaram and parts of Orissa State. The main plant is situated at Manchukonda Gardena while the smaller Maaza unit is situated l km down the road. The plant produces 300 ml bottles of Coke, Thums Up, Fanta and Limca and their canisters while the Maaza unit produces the 250 ml Maaza fruit drink. After acquiring the unit, the company is tied to mould the organization so that it becomes consistent with the Coca-Cola work culture. The top level management had already bee professionalized and change was expected at the middle level also. A total reorganization was around the corner. Bharat Coca-Cola Bottling Southeast Private Limited is headed by an Area General Manager. The various departments are the Finance department, the Sales department, the Plant, the Quality Assurance department and the Personnel department. It all started in the year 1967 when the great visionary Mr.M.V.V.S.Murthy started his small business of selling the soft drinks in the Vizag town. It was stared as a small unit in the industrial estate with as many as of employees, they, being his partners. As the days went by the same plant was made into big plant with the help of government and it was called the Visakha Bottling Company. This constituted a small number of employees who were loyalists of the great visionary. All this has further improved with the help of them taking up 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 and they were the sole distributors of the greatest brands like Thums Up, Limca, Citra, Gold Spot etc., then came the era of the takeovers and in the year 1996, Coke came in touch with VBC. The deal was struck and it was this unit serves the districts of Visakhapatnam,

acquired by the Coca-Cola in the year 1998. From then on, it became a sole authority to the property of VBC and since then it was operating as a fully owned company. This plant operates with 102 staff, 10 managers, 165 plant workers, 250 contract workers in peek season and 185 190-contract workers in other seasons. The plant is located at the picturesque location of Manchukonda Gardens and it runs to around 3 acres of land. The plant layout depicts the extent o care taken by the management to have a very pollution free area and an enjoyable arena to work in. The entire plant is divided into four segments. They are; 1. Water treatment plant 2. Syrup preparation plant 3. Carbon dioxide preparation plant 4. Administration

THE PLANT
The entire process can be simplified and presented as below:

Raw Syrup Room


The raw syrup is obtained by mining water and sugar at 85 degrees Centigrade. This is done in a large cylindrical tank of 6 KL capacity.

Ready Syrup Room


The ready syrup is obtained by agitating the essence (which is kept in an essence mix tank) with the raw syrup. The essence is imported from Atlanta and its formulation is a tightly kept secret.

CIP Room
CIR stands for clean in point. There are two cylindrical tanks of capacity 2 KL each. One is a hot caustic tank maintained at 60 degrees centigrade and the other a hot water tank kept at 80 degree centigrade. These solutions are used for cleaning the raw syrup and ready syrup tanks.

The temperature, water/solution level, etc. can be maintained and controlled by the automated CIP system.

Before production starts each day, the ra syrup tank and the ready syrup tank is cleaned in 3 steps. 1. Cool water rinsing 2. Hot water circulation 3. Cool water rinsing -5 min - 10 min - 5 min

At the end of the day, the tanks are again cleaned in 5 steps. 1. Cool water rinsing 2. Hot caustic circulation 3. Cool water rinsing 4. Hot water circulation 5. Cool water rinsing - 5 min -10 min - 10 min - 15 min - 10 min

The raw syrup room, ready syrup room and CIP are manned by five people. Bottle Washer This is a huge automated machine with five compartments. 1. Pre-rinse compartment. 2. Pre-wash compartment. 3. Soaker compartment. 4. Hydro compartment. 5. Pre-final fresh compartment.

The bottles that return from the market are initially checked for damages and cracks. If found fit, they are put in the bottle washer where they are thoroughly cleaned.

It the goes to the testing area where frontal and bottom testing is done. The bottles are checked for faded labels, chipped mouth, cracks due to thermal shock, bruises due to washing, residual liquid from washing and other foreign debris. Filler and Para mix Machine The ready syrup reaches the para mix machine where it is cooled by the refrigerant ammonia. The solution is carbonated and sent to the filler machine. The filler machine fills the bottles and caps them at the rate of 300 bottles per min. The bottles are code using by a coding machine where the price, batch and date of manufacturing is imprinted. The filled bottles are finally checked for loose crowns, rising, bubbles, cracks and foreign particles, the levels of the liquid etc., The filled bottles are shifted to the godown, which has a total capacity of 30,000 crates. At any time the go down will have a stock of 20,000 to 25,000 crates

OTHER SECTIONS Generator room: The high-powered generators of 250 KVA and125 KVA are used for providing energy. Chilling Plant: It supplies ammonia, which acts as the refrigerant. Water treatment plant: Water is obtained from pipelines and bore wells. This water is chemically treated.

Boiler Plant: It provides steam to the bottle washer unit, raw syrup room and ready syrup room. PRODUCTION The production department is headed by a Plant Manager who reports directly the Area
General Manager (AGM). Regarding financial matters, he interacts with the FM. The plant manager interacts with the AGM and the FM on a daily basis. Below plant manager here is Deputy Manager (Instrumentation and production). In the absence of the Plant Manager, the Deputy Manager takes charge. There are 2 Assistant Manager (Production) one for each shift and two Assistant Manager Mechanical (Engg-maintenance) One Engineer is for the inside boundary limits i.e.,; plant equipment and maintenance and the second Engineer is for outside boundary limits i.e.,; for the utilities like generator room, boiler, Water treatment plant and the Maaza unit which is located at some distance. These 4 people report to the Plant Manager. There are 118 workers in the plant, which includes 14 women, 12 preventive maintenance staff, and 46 workers in each shift. Each shift requires 54 people. The gap of 8 people (54-46) is filled up by diverting the women (8 nos), who are otherwise engaged in house keeping into the production line. Depending on the demand, the company operates 3 types of shifts. General shift 8 am to 5 pm 2 shifts 6 am to 2 pm and 2 pm to 10 pm. 24 hours 6 am to 6 pm and 6 pm to 6 am (12 hours shift) During the general shift, the manpower requirement is only 54 while the company has 92 heads. Women are employed only in the general shift( 8 am to 5 pm) or the A shift (6 am to 2 pm). In other shifts, casual laborers are used. In the Maaza plant, 24 heads are required. During the general shift some workers are transported from the main plant and some casual laborers are also employed.

The workers report matters as and when they arise to the Assistant Manager (Plant Supervisor) there is not much interaction between the Plant Manager and his workers directly. However the channel is open if the need arises. For any maintenance work that arises suddenly, the concerned engineer is informed. The supervisor clearly stating the problem, the date and the person who has been assigned the task fills a work order form. When the work is completed, the Supervisor signs stating whether the job has been satisfactory done or not. (Ride Appendix). A preventive maintenance schedule is prepared for all the equipments for a given year. Charts indicating the work to be done and the work already completed are displayed prominently in the office. Weekly maintenance is done on Sundays when there is no production. When the plant is shut down for maintenance, other departments are informed in advance especially the sales department. Additional stock in the godown is maintained. If the work takes an unduly long time to finish, it may result in shortage of any one flavor during the months of May and June. The Plant Manager gets the weekly sales plan from the sales department

in advance. He also keeps a watch on the godown stock level every morning. The plant has surplus staff. There in no formal appraisal system. However the Plant Manager speaks to has subordinates on an informal basis. He suggests ways to improve performance especially when the quality is affected. The workers re not unionized. A daily production cum daily time report is sent to the Area General Manager (AGM)
2.3 FUNCTIONAL DEPARTMENT OF THE ORGANIZATION.

FUNCTIONAL DEPARTMENTS:
Management process consists of several functions and a distinction should be maintained between management functions (planning, organizing, staffing, directing and controlling) and organization functions differ from organization to organization depending upon their nature, while the functions of the manager are common to all. Thus, a manager may be put in production function, marketing or finance or HR function but he completes the activities of these functions

through all the managerial functions. These organizational functions are called functional areas of management. In Hindustan Coca-Cola Beverages Pvt. Ltd., there are in all 5 departments looking after each of the functional area of the organization. They include:

1. Production Department:
This department of the organization is normally kept under the control of the production manager, Mr. M.V.K.N. Chodwary who is responsible for the performance of the entire related activities. The functions of these departments include: Purchasing: This is related with the purchase of various things required by the organization and managing transportation etc., these sections functions with two people including the purchase in charge, which reports to the FM. The plant informs the stores of the requirements who in turn make a purchase request to the purchase department. Every Purchase matter whether concerning the plant of office is handled by the purchase department. Material Management: This sub area deals with the storing of materials, material control, and issuing of materials to department where these are needed. This works in close co-ordination with purchase management. There is a store in-charge and four other people to assist him. All materials for production are under for productions are under the stores in-charge once they enter the company premises. This includes sugar, essence, crown etc., The stores department reports to the finance manager and daily reports are sent to him. Materials are stocked in accordance with the production schedule and targets. The shipping department functions under the shipping in charge who notes the fulls position in godown, empty; position, fulls movement and empty movement. This unit reports to the FM.

2. Quality Assurance Department

The quality assurance department is headed by a Deputy manager. In addition to him there are 7 chemists. The Deputy manager reports to the AGM. The department test and controls the quality of water, caustic solution and the final beverage. The final beverage is tested for gas and bricks (i.e. the sugar content). Samples are taken every half an hour. Any deviation from the specified standards is reported and rectified immediately. In the micro testing lab, the water and beverage is tested for contamination. If any indication of contamination is found out, the QA department has the right to stop production immediately. In the general lab, the products are tested for flavor and freshness. In addition to this, the department does a shelf test. 5 bottles are collected per day and they are kept in the shelf for a period of 3 months. Later, they are tested. Any complainants from the market are promptly attended to. The batch number and months is noted and a corresponding sample is tested from the shelf. Any complaint from the market is received by the sales team who in turn informs the QA department. One chemist is in charge of spot-checking of fountains. The deputy general manager or any of his subordinates in the QA department have the right to stop production and order a sterilization process for the entire plant. They can even bypass the plant manager in this regard. The department sends daily reports to the AGM and the plant manager. In case of any urgent need, he meets the AGM personally and sorts out the issue.

3. Marketing Department:
This department of the organization involves the distribution of organizations products. This requires a number of steps and can be divided into following categories. The marketing department of Hindustan Coca-Cola Beverages Pvt. Ltd., looks into various aspects like:

Advertising: This sub-area deals with advertising of product giving about the products to prospective buyers and inducing them to purchase the products. Marketing Research: It is related with the systematic collection, recording, and analyzing of data in relation to the marketing of goods and services. This is mainly done by the sales executives of the company. Sales Department; Sales management involves managerial efforts directed towards the movement of products and services from producers to consumers. The Sales Manager of Coca-Cola is Mr.Milind. The sales department has a senior sales manager and 3 sales managers. Of the three sales managers, one person is in charge of city sales whiled the others are for district and Orissa sales.

All of them report to the AGM directly who interact with the sales department on a daily basis and virtually leads the team.

District Sales
In addition to the sales manager, there is a deputy sales manager, four assistant sales managers and below them two sales men each. Each distributor has a target, which is fixed by the sales manager in consultation with the distributor. From the distributor, it reaches the retailer outlet. The company sales force helps the retailers and distributors achieve their targets through promotions and other incentives. The sales force in far off locations report to the sales manager once a week. Based on their reports, new incentive schemes and offers are made. The previous weeks performance is evaluated and targets for the next week are discussed.

City Sales
Under the Sales Manager (City) there are 13 supervisory staff and 113 field force. The company has no distributors in the city of Visakhapatnam. They directly supply to the retailers.

There are twenty routes with a truck covering each route. Each truck is accompanied by a sales man and two sales helpers. There is a sales officer for every two routes. He moves around on a bike and sees that all outlets are covered. Any urgent message is communicated to the sales force through pagers There are approximately 2500 outlets in Vizag city. In loop areas i.e., areas

where the company truck cannot go, a fat dealer is appointed. He supplies to these areas and gets about 5% commissions. Bottles and crates are provided to a retailer after a certain deposit is paid. In peak season when there is excess demand, crates are also provided on loan. This does not involve money transactions and retailer may take 10 crates on loan, which he will return later. Coolers are installed at retail outlets depending on the retailers requirement and sales volume. The sales man on his visit sees to it that the coolers are properly maintained. Any serious problem is rectified by the service engineers who are on a contract with the company. Targets are fixed and the sales men and sales helper get incentives for achieving and exceeding the targets. On returning to the sales depot, he submit the load sheets, the cash sales invoice, cash details form and the settlement sheet. The Sales Manager interacts with his sales team in the depot every morning where the latest market situation is discussed. The SM does not hand over charge to nay one person during his absence. The AGM manages the situation. Recruitment and selection to this department is done by the personnel department. There is no regular training program and the department is well staffed. Advertising and merchandising is handled by a person, who reports to the SM. The budget is fixed at Bangalore. This is split up and allocated to different departments. The artwork, the location, the type of display etc., is decided by the advertising in charge. The medium used includes canopy, glow signs, hoardings, paintings etc., The Company provides for electricity charges in select outlets. 4. Finance and Accounting Department:

The finance department is headed by a Finance Manager. This is a very powerful post in the company and the finance manager is the second in command of the unit. He reports to the CFO for functional matters who is based in Bangalore and to the local AGM for administrative matters.

The entire plant and operations keep him abreast of their daily functioning, while the AGM mainly attends to the sales function. The finance department can be broadly segmented into two. The accounting sections and the payables/receivables i.e., the bulk
of working capital. In addition to this, the sections like shipping stores, purchase, administration and taxes report to the FM. The annual budget is prepared at Bangalore. The FM makes allocation for the different departments in consultation with the department heads. This department of Hindustan Coca-Cola Beverages Pvt. Ltd., deals with the record keeping of various transactions and management of financial resources. It is headed by Mr.Summit Dey. It deals with: Financial Accounting: it relates to record keeping of various transactions, their classification, and proportion of various statements to show the working of results and financial position of the organization. Management Accounting; It deals with the analysis and interpretation of financial records so that the management can take certain decisions. Investment Management: It takes care of how the financial resources can be applied to various alternatives. Taxation: This aspect deals with the management of various direct, indirect taxes, which the organization has to pay.

4. Research & Development:


This department of the organization deals with the R&D of various drinks in Coca-Cola. The objectives here is to bring refinement in the existing product line. There is a Quality Assurance Manager, who takes care of the quality of drinks, bottles and bottling of the drinks.

5. Personnel Department:
The personnel department is headed by a manager-personnel and legal. There is a deputy manager and three accounts assistants reporting to the manager. The department handles all administrative and legal works. Matters like recruitment, selection, wage structure etc., are decided at Bangalore. Leave for the staff is sanctioned by the respective department heads. The departments conducts training programs in computers and spoken English so as to better equip its people to handle the change the organization is under going. It reports to the FM and the AGM on a daily basis. This department at Hindustan Coca-Cola Beverages Pvt. Ltd. Deals with the management of Human Resources in the Organization. It is generally headed by a HR Manager, but in CocaCola plant of Visakhapatnam, there is no HR manager, but instead there is team leader Mr. Rajesh Kumar, who looks after all the HR activities in the organization. It includes the following areas. Recruitment & Selection: These deal with the hiring and employing in the organization. Sometimes, especially in summer when the demand for the drink is high, the company recruits many shop floor employees on temporary basis. Training & Development: Training and Development deals with the process of making an employee in the organization to be more effective. Wage & Salary Administration: These are related with wage and salary surveys, job evaluation, merit rating and incentives.

6. Customer Service Support System:


There is a customer service support system (CSSS) which functions under the CSSS for entire Andhra Pradesh. Locally it reports to the AGM.

AGM

CSSS (AP)

CSSS (VIZAG)
In the soft drinks industry, the customer and the consumer is defined separately. The customer is one who exists for profit. This includes the retailer and distributor. By consumer, we mean the end user of the products. The CSSS studies the distribution network and suggest improvements necessary. The viability of existing planning is main function of CSSS. It even suggests training programs for the sales force depending on the need. The function of CSSS can be briefly summed up as Managing the Middlemen.

COMPANY

CUSTOMER

7 Consumer Response Co-ordination Unit (CRC) The consumer response Co-ordination unit functions under the sales manager. This unit is temporarily handled by the CSSS. The CRC unit receives complaints and grievance from the market either through phone calls or through the sales force. It sends regular report to the corporate office. These reports are useful for dealing with similar situations arising in different parts of the country.

8. Security
There is a security in-charge who is an employee of Bharat Coca-Cola. He reports to the Area General Manager. There is a security officer and four security guards per shift. They are group IV employees and are taken on a contract basis.

2.3 ORGANIZATIONAL STRUCTURE.

AGM

SALES MANAGER

FINANCE MANAGER

PLANT MANAGER

HR MANAGER

ASM CITY SALES EXECUTIVE

ASM-UP COUNTRY SALES EXECUTIVE

AGM Area General Manager ASM Area Sales Manager

2.4 PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION COMPETITORS


PRODUCTS: The company works to meet the changing desires of consumers with an everchanging family of products that includes the following powerful brands. Coca-Cola: The best selling soft drink in the world, and the most recognized and admired trademark around the globe. In April 1985, after extensive taste testing, the company introduced a new haste of the Coke in United States of America and Canada. Consumers responded with an unprecedented and legendary out pouring of loyalty and affection for the original formula hence the company has introduced the formula in the year 1985 once again as Coca-Cola Classic. Diet Coke: A milestone in innovative product development, Diet Coke debuted the USA in the year 1982 and began a massive international rollout in 1983 as Coca-Cola light in some markets. Named advertising ages brand of the decade in 1990, Diet Coke remains the number one Diet soft drink in UA and around the world. Sprite: Introduced in USA in the year 1961, it is the fifth best selling soft drink in the world and fourth best selling in the Coca-Cola family. Cherry Coke: The pioneer in its category, cherry coke debuted in USA in July 1985 and achieved top 10 statuses among all soft drinks.

Fanta: Introduced in the year 1960, Fanta was the first soft drink than Coca-Cola to be marketed by the company for years. Only the European bottlers of Coca-Cola G.M.B.H. distributed Fanta Lime. The German arm of the Coke exports company developed the original orange flavored Fanta during World War II, when the machinery, material and concentrate necessary to produce Coca-Cola were unviable. Today, Fanta is the fourth best selling drink brand in the world. Minute Maid: Minute Maid, orange soft drink and its diet counterpart were introduce in Canada in 1984 and in the year 1987 in Power Ade, USA. Unveiled in 1990 as a fountain beverage and in the year 1993 as a package drink is now available in a variety of flavors. The company also offers Diet and Caffeine free formulations of many of its soft drinks including Diet Sprite, Diet Cherry Coke and Caffeine free Diet Coke some of the other companys brands available in United States are TAB, MELLO, YELLO, FRESCA, BARCS, FRITOPIA AND Mr.PIBB. In addition the company offers brands tailored to meet the needs of other national markets, such as the highly popular Georgia Coffee Line in Japan. BRANDS OF COCA-COLA WORLD OVER: One of the greatest advantages of Coca-Cola is the ability to maintain and produce the products world over while marinating a local approach. At the heart of this approach is the bottling system. Before any one of the products is to be consumed, it has to be produced, packaged and distributed. Coca-Cola reaches around 6 millions people and thus the bottling had to be perfect. The bottling of the product is done either by the individual companies or by

the companies owned by the company itself, so the process of acting locally and thinking globally roots them locally. The trademarks listed below are owned or used under license by The Coca-Cola Company and its related affiliates, as of May 31, 2007. These trademarks may be owned or licensed in select locations only.

CHAPTER - 3 DISCUSSIONS ON TRAINING

3.1 STUDENTs WORK PROFILE (ROLES AND RESPONSIBILITIES), TOOLS AND TECHNIQUES USED. RED it can be abbreviated as Right Execution Daily. Right Execution, it is one and the most fruitful method to increase the sales of the Coca-Cola products. Through Right Execution Coca-Cola has seen wonderful results. This right execution has been conducted daily by the company. Right Execution Daily (RED) can be better understood in terms of the following segmentation model. OUTLET VOLUME: The outlet volume is subdivided into four classification and they are 1. Diamond 2. Gold 3. Silver 4. Bronze The above classification has been done on the basis of number of Coca-Cola cases that a particular outlet sells per a year. Here the case consists of 24 bottles (Either RGB or PET bottles). This classification can be better understood by the following table. Volume per Outlet (VPO) (Annual) Phy c/s Outlet Classification Diamond Gold Silver Bronze VPO SLAB (Phy c/s) >800 500-799 200-499 <200

1. Diamond: This Diamond outlet can be defined as the outlet where the annual sales of soft drinks are more than 800 cases. 2. Gold: This Gold outlet can be defined as the outlet where the annual sales of soft drinks are in between 500 cases to 799. 3. Silver: This Silver outlet can be defined as the outlet where the annual sales of soft drinks are in between 200 cases to 499 cases. 4. Bronze: This Bronze outlet can be defined as the outlet where the annual sales of soft drinks are less then 200 cases. THE ELEMENTS CONSIDERED IN RED In Right Execution daily the three elements considered are: 1. Visi Cooler. 2. Availability. 3. Activation. These can be described as follows: 1. Visi Cooler: visi coolers are the fridges which are having transparent glass doors so that the products in the cooler can be clearly visible to both customer (Retailer) and to the consumer. The company is providing various types of visi coolers to the retailers as per standards and there are five types of coolers; 4 case cooler, 7 case cooler, 9 case cooler, 20 case cooler, and 30 case coolers. There are six parameters that are considered in visi cooler. a. Cooler standard. b. Cooler prime position. c. Cooler working condition. d. Cooler light working condition (inside bars condition). e. Cooler purity. f. Cooler brand order complainant

2. Availability: Availability is defined as the availability of Coca-Cola products in the defined outlet. Under the availability the following parameters are to be considered. a. CSD (Carbonated Soft Drink) 200 ml or 300 ml b. CSD Mobile PET 500/600 ml c. Maaza RGB (Returnable Glass Bottle) 200/250 ml d. Maaza TP (Tetra Pak) 200 ml e. Maaza Mobile 600 ml f. Can (Diet) g. Large 1.5 ltr or 2 ltr.

3. Activation: Activation can be defined as the tools, which have been given to a particular outlet by the company for advertising the Coca-Cola products and to attract the consumers to buy the products. The activation tools are: Combo Communication. Branded table mats/Branded menu cards/Table top vinyls. Flange, Road standee or Glow sigh boards (GSB)

OBJECTIVE OF THE STUDY


1) To know the reason behind low RED (Right Execution Daily) score. 2) To know the availability of activation element in RED outlet. 3) To know the problem in the distribution of activation element. 4) To identify suitable activation element according to the outlets location. 5) To know the impact of activation element on sales. 6) To know the impact of activation element on customer. 7) To help M.D.(Market Developer) in outlet activation. 8) To know the Salesmen performance due to RED Score.

SCOPE OF THE STUDY

1) The main scope of study is to understand the impact of S.G.A.(Sales Generating Assets). 2) To increase RED score of the outlet. 3) To fill the gap of activation element in different RED outlet. 4) To make a platform for market developer to work on difficult RED outlet. 5) To analyze the work of the market developer.

CHAPTER - 4 STUDY OF SELECTED RESEARCH PROBLEM

4.1 STATEMENT OF RESEARCH PROBLEM.


Execution of market means placement of company products at the sales counter with appropriate activation demand. In the above definition the term placement and marketing are very important. Placement in market execution is entirely different from marketing. In marketing, planning a product holds a much broad meaning while in marketing execution it refers to putting the products to those sales counters where the probability of market acceptability is very high. Right placement of product ensures its availability to the target The method of RED should be executed to the fullest extent and the employees should be trained on RED method. Once the employee has been selected, trained and motivated, he is then appraised for his performance. customers in one hand while on other it provides the company fair expected sale Performance appraisal is the step where the management final out how effective it has been at hiring and placing employees. If any problems are identified steps are taken to communicate with the employee and to remedy them. A Performance appraisal is a process of evaluating an employees performance of a job in terms of its requirements. According to heyel it is the process of evaluating the performance and qualification of the employees in terms of the requirement of the job for which he is employed, far purposes of administration including placements, selection for promoters, providing financial rewards and other action which require differential treatments among the members, of a group as distinguished from actions affecting all members equally.

4.2RESEARCH DESIGN AND METHODOLOGY


The study was conducted through the collection of primary data as will as he secondary data. Primary Data: The primary data (i.e., related to analysis part) was collected from the customers by conducting a survey with the use of questionnaire.

Secondary Data: The secondary data was collected from the companys brochures, manuals and journals and also from the websites of Hindustan Coca-Cola Beverages Pvt. Ltd., Research Methodology: Research Methodology is a way to systematically solve the research problem .It can be understood as a science of study how research is done scientifically. It is a study of various steps that are adopted by a researcher in studying his research problem along with the logic behind them. Data has been collected and calculated up to the accurate extent is from primary as well as secondary sources ie,no previous data was available on the basis of which calculation of graphical presentation is done. As it was assured to the response of the respondents that their response would be kept confidential so they were very free and frank while giving their response. It was descriptive research. The researcher-collected data from personal interviewed with officials of different banks, by filling questionnaires, surfing on Internet, articles published in magazines, literature available with Kotak Securities Ltd. Methodology Of Data Collection: To make the report more authentic and valid, the collection of data should be through reliable sources and the approach is very important. For the purpose of this report, the data and information were collected in the following manner. Direct Contact With The Organization: The organization was visited daily to collect the information about their services and products offered. Their pamplets were obtained and studied. Diagram Of Research Methodology:
Define Research Problem

Review The Literature

Formulates Hypothesis

Design Research

Collect Data

CHAPTER - 5 ANALYSIS

1. Annual turnover of outlet?

Options 0 to Lakh 1 to 2 Lakhs 2 to 3 Lakhs 3 to Above

Respondents 7 3 10 30

Percentages 14 6 20 60

GRAPH:
Respondents

14%

6% 0 to Laksh 1 to 2 Lakhs 2 to 3 Lakhs 60% 20% 3 to Above

INTERPRETATION

Majority of retailers are belonging to above 3 lakhs and above 20% are 2 to 3 lakhs and 6% belonging to 1 to 2 lakhs and 14% belongs to below one lakh.

2. Market developer knowledge level in RED parameters is? Options Good Very Good Satisfying Bad Respondents 34 24 32 10 Percentages 68 24 32 10

GRAPH:
Respondents

10%

34% Good Very Good 32% Satisfying Bad

24%

INTERPRETATION:

From the above graph 68% people belonging good knowledge in RED parameters as well as 24% very good, 32% are satisfying with the knowledge level in RED parameters remaining 10% are bad for these market developers company can give better knowledge for survey in the market.

3. What is the sales contribution per month towards coca-cola? Options 0 to 50000 5000 to 10000 10000 to 15000 15000 to above Respondents 15 9 5 21 Percentages 30 18 10 42

GRAPH:
Respondents

30% 42% 0 to 50000 5000 to 10000 10000 to 15000 15000 to above

18% 10%

INTERPRETATION:

From the above graph 42% retailers are give more than 15000 monthly turnover 30% retailers belonging 1 to 5000, 18% retailers 5000 to 10000, 10% retailers 10000 to 15000 belonging the coca-cola company services towards coca-cola sales.
4. Market Developer is qualified or not?

Options Yes No

Respondents 45 5

Percentages 90 10

GRAPH:

Yes

33%

Respondents Percentages

67%

INTERPRETATION: From the above graph 90% people recognized the market developer need 10% not satisfied the market developer activities.

5. Implementing RED Parameters? Options Good Very Good Not Good Fair Respondents 20 20 5 5 Percentages 40 40 10 10

GRAPH:

Respondents

10% 10% 40% Good Very Good Not Good Fair

40%

INTERPRETATION:

From the above graph 80% of the retailers satisfied the good and very good and 10% are fair and 10% are not good.

6. Punctuality of MD? Options Regular Irregular Acceptable Not Fair Respondents 33 5 10 2 Percentages 66 10 20 4

GRAPH:
Respondents

4% 20% Regular Irregular Acceptable 10% 66% Not Fair

INTERPRETATION: From the above graph 66% are satisfied with the market developer are regular.20% are acceptable and 10% are irregular 4% are not fair. 7. Relationship with retailers/shop keepers? Options Good Very Good Better Poor Respondents 31 11 4 4 Percentages 62 22 8 8

GRAPH:
Respondents

8% 8%

Good Very Good 22% 62% Better Poor

INTERPRETATION: From the above graph 84% shopkeepers are satisfied with healthy relationship with market developers and 8% are respectively better and poor.

8. Reporting system of MD as well as DSMS? Options Regularly Weekly Day after day Irregular Respondents 20 12 9 9 Percentages 40 24 18 18

GRAPH:
Respondents

18%

40%

Regularly Weekly Day after day Irregular

18%

24%

INTERPRETATION: From the above graph 40% of shopkeepers are satisfied with regular of DSM and 24% of partially satisfied in the period of weekly. 18% are day after day and remaining 18% shopkeepers satisfied with irregul 9.Relationship with Delivery sales men? Options Excellent Good Not Bad Not Good Respondents 15 22 5 8 Percentages 30 44 10 16

GRAPH:
Respondents

16% 30% 10% Excellent Good Not Bad Not Good

44%

INTERPRETATION: From the above graph 30% people give excellent relationship DSM another 44% people satisfied with good 16% people they are not satisfied with the DSM relationship with the option not good 10% people are fully not satisfied the relationship with the DSM.

10. Time spending on a particular outlet? Options 10 Mins 15 Mins 20 Mins Respondents 28 12 7 Percentages 56 24 14 6

More than 20 3 Mins

GRAPH:

Respondents

6% 14%

10 Mins 15 Mins 56% 24% 20 Mins More than 20 Mins

INTERPRETATION: From the above graph 56% outlets are comes under where market developers spend 10 minutes and 24% for 15 minutes and 14% for 20 minutes and more than 20 minutes outlets are 6%.

11. What are the major brand names for the following items in terms of sales? Options Coca-Cola (Thums Up) Sprite/Limca Fanta/Maaza Juice Mobile/Tetra GRAPH: 10 9 10 20 18 20 Respondents 21 Percentages 42

Respondents

20%

42%

Coca-Cola (Thums Up) Sprite/Limca Fanta/Maaza

18%

Juice Mobile/Tetra

20%

INTERPRETATION: From the above graph 42% are with major brand Thums Up and Coca-Cola 20% with Spite and Limca and 18% are with Fanta Maaza and 20% are with Juice Mobile and Tetra Pack

12. Reporting system towards Sales team leader? Options Excellent Good Average Unacceptable Respondents 17 21 5 7 Percentages 34 42 10 14

GRAPH:
Respondents

14%

34% 10% Excellent Good Average Unacceptable

42%

INTERPRETATION: From the above graph 34% are with excellent and 42% with good reporting system of STL and 10% are average and 14% of shopkeepers are not acceptable of reporting system of ST

SUMMARY OF FINDINGS.
According to most of the outlet owners the product, which is seen, is sold i.e. "Jo Dikhta Hai Wo Bikta Hai". 70% outlet from the sample of 100 outlets which have sufficient activation elements but remaining 30% outlets are not fully activated. 69% of visited outlet, visi cooler are pure i.e., in visi cooler only the product of Coca Cola are placed and 31% of outlets dont keep visi cooler pure. 67% of visi cooler are at prime position where consumer can see our product and choose as per their need. 52% market cover under the high income group and remaining are 10% middle income group 18%, 30% low income group are respectively.

CHAPTER - 6 SUMMARY AND CONCLUSIONS

6.1 SUMMARY OF LEARNING EXPERIENCE

LIMITATIONS:
While conducting the survey, the following limitations were faced: The answers given by the respondents were considered as through where the accuracy depends on the mood and interest of the respondent. Some times, the respondents did not co-operate while answering the questions. There is large number of customers to the company. But due to the lack of time the survey had to be restricted to 2000 outlets only.

SUGGESTION:
We must visit all RED outlets where the activation elements are missing and it must be activated immediately. The MD needs to visit all the red outlets regularly to keep the visi cooler pure. Prime position of visi cooler enhances the visibility of the product which help consumer to choose the product and some times it influences the customers to switch over from similar product. We should try the increase sell of outlets so that maximum outlets convert into upgrade class.

QUESTIONNAIRE

Name Name of the outlet

: :

Address/Ph.no/route no. : 1. Annual turnover? A.10,000 C. 50,000 ( ) B. 25,000 D. Above

2. Market developer knowledge level in RED parameters is? A. Good C. Very good B. Satisfying D. Bad

( )

3. What is the sales contribution per month towards coca-cola? A. 5,000 C. 15,000 4. Market Developer is qualified or not? A. Yes B. No B. 10,000 D. Above

( )

( )

5. For which Channel do you belong? A. Grocery C. E&D type1 B. Convenience D. E&D type2

( )

6. Implementing RED parameters? A. Very good C. Fair B. Good D. Not good

( )

7. Punctuality of MD A. regular C. Acceptable B. Irregular D. Not fair

( )

8. Relationship with retailers/ shop keepers A. Very good C. Better B. Good D. Poor

( )

9. Reporting system of MD as well as DSMS A. Regularly C. Day after day B. weekly D. Irregular

( )

10. Relationship with Delivery sales men A. Excellent C. Not bad B. Good D. Not good

( )

Thanking you Sir/Madam,

Signature

BIBLIOGRAPHY

Books:

Marketing Management -Philip Kotler, - Heyel Marketing Research

- Pull & Hawkins Journals:


Indian Journal of Marketing (Monthly) Websites: www.coca-cola.com www.coca-colacompany.com