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Horizontal Expansion Strategy

Shahnawaz Adil
MBA 3rd Semester 1100122143

Objectives

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To understand the concept of Horizontal Expansion with respect to Advance Sales and Services Pvt. Ltd. Evaluate the existing resources. To develop the business , expand market coverage. The benefit of Horizontal Expansion for the company at retailers end.

Contents
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Section 1: Company Profile. Section 2: Profile of Organization imparting Training


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Section 3: Conceptual background of topic.
Section 4: Details of work completed Section 5: SWOT Analysis

Section 1 Company Profile .

Joseph A.Past and Present  1894 … A modest start for a bold idea A store's owner. Benjamin F. Thomas and Joseph B.for the sum of one dollar. using a common glass bottle called a Hutchinson  1899 … The first bottling agreement In a meeting with Candler. began bottling Coca-Cola to sell. . Biedenharn. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -.

and 26-ounce versions.  1950s … Packaging innovations For the first time. consumers had choices of Coca-Cola package size and type -. 12. Cans were also introduced. 64 bottling plants were set up around the world to supply the troops.Past and Present  1940s … Post-war growth During the war. or larger servings including 10-. Many of these war-time plants were later converted to civilian use.the traditional 6. permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business.5-ounce contour bottle. becoming generally available in 1960. .

The 1980s brought diet Coke® and Cherry Coke®. Fresca® and TaB® joined brand Coca-Cola in the 1960s.Past and Present  1960s … New brands introduced Following Fanta® in the 1950s. followed by POWERADE® and DASANI® in the 1990s. 1970s and 80s … Consolidation to serve customers The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers.  . Pibb® and Mello Yello® were added in the 1970s. Mr. Sprite®. Minute Maid®.

more than $1. 21st Century … The Coca-Cola bottling system grew up with roots deeply planted in local communities. And as the century closed.5 billion was committed to new bottling facilities in Africa.  . This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets.Past and Present  1990s … New and growing markets After the fall of the Berlin Wall. the Company invested heavily to build plants in Eastern Europe.

In 1950 as there were negligible companies in Indian market therefore Coca-Cola did not face much competition and they were accepted in Indian market more easily. Calcutta.  . As per FERA REGULATION the company was required to India close operation by May 5. Kanpur and Delhi.Coca-Cola in India  The Coca-Cola Company entered India in the early 1950s. It set up four bottling plants at Bombay. By the end of 1977 Coca-Cola had captured more than 45% of market share in India. Then Coca-Cola left India following public disputes over share holding structure and import permit. 1978 yet strongly enough the company’s operation come to end in July 1977.

At this time Parle was the leader in soft drink market and had more than 60% of the total market share in soft drink Coca-Cola joined hand with Parle and strategic alliance with Parle export give the company instant ownership of the nation top soft drinks brands Thums-Up. Gold Spot and Maaza access to Parle’s extensive 62 plant bottling network and a base for the rapid introduction of the company’s international brand by striking a $40 million deal with Parle Coke almost a clear sweep and made it goal as “To become an all occasion drink not a special treat beverage”.Coca-Cola in India  In October 1993.  . Coca-Cola returned to India after 16 years of absence with the slogan “Old waves have come to India again” first launched in HATHRAS near AGRA HOME of the famous TAJ MAHAL. Citra. Limca.

Section 2 Profile of Organization imparting training .

is a marketing and distribution. Lakhimpur. Ltd. Sitapur & Faizabad are the distribution and market area for Advane Sales & Service Pvt. Ltd. Ltd.  Lucknow. Jhansi.Advance Sales & Service Pvt. Ltd. Franchise of Brindavan Bottlers Pvt.  . Lalitpur. Advance Sales & Service Pvt. Barabanki.

Management Profile General Manager .B.Rajan Sharma  Head of Sales(Outer).Sanjeev Garg  Head of Sales(City).K. Shrivastav  Marketing Executive Manager – Chitresh Tiwari  HR Head – Manu Mehrotra  HR Executive – Pooja Chandwani  .

 Sales & Marketing Division Sales Head Area Sales Manager Sales Executive Team Leader Sales Team .Distribution & Marketing of Advance Sales & Service.

Distribution & Marketing of Advance Sales & Service.  Distributors Criteria Direct Sales Distributor(DSD) Total company authorised Indirect Disrtributor(ID) By Agents .

 Distributors Segment 1. Spoke(Rural Area) (Investment 1-2 lakhs) . Anchor Distributor (Investment 40-50 lakhs) 2. General Distributor (Investment 10-20 lakhs) 3.Distribution & Marketing of Advance Sales & Service.

Section 3 Conceptual Background of Topic .

It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. the term Horizontal Expansion describes a type of ownership and control. . In microeconomics and strategic management.Horizontal Expansion Expansion of business capacity through the absorption of facilities or buildings as well as through the acquisition of new equipment to handle an increased volume in sales in which the business is already engaged.

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

This will generate incremental revenue for the business. By horizontal expansion there will be more outlets of our product in the market which will sell our product in more quantity.Benefits of Horizontal Expansion  Provides Incremental Volume & Revenue for Business.   Helps Improve Route Productivity Increase market visibility selling at more outlets give more market visibility of the product which gives higher product recognition and brand value to the products. Increase in market power over supplier and downstream market channels.   .

Section 4 Detail of Work completed .

Kalyanpur 3.Profile of subject area  Area of Work 1. Khurram Nagar . Vikas Nagar 2.

Kalyanpur and Khurram Nagar were considered for the new oultlet opening.Number of Clients  Total 65 retailers such as FMCG Outlet. Beverage and Resturant. Communication Stores. . etc of Vikas Nagar. Medical stores Cyber Café.

Section 5 SWOT Analysis .

 Modified and attractive packaging.  Latest technology.  Strong advertising network.  Heavy investment in both infrastructure and sales promotion campaigns.Strength Improved quality control.  .

 .Weakness Entire infrastructure needs a facelift.  Tight case policy.  Unskilled labor.  Fear of retrenchment among the workers.

  .Opportunities  Wide market. Good rural market. Direct distribution.

Changing of consumer preference.Threats  Stiff competition. Illegal distribution done by some distributors.   .

The primary objective of the my research is to analyze the horizontal expansion strategy of Coke and at the end of the research I found that there is requirement of changing the strategy for acquiring new customer for Coke but company should take care of its existing customer because they are the main instrument of promotion for any company so old customer should be fully satisfied with the company. I grasped lots of knowledge within two months Because many of the company officials has assisted and given me the valuable notes and experience of their life. .Conclusion   As far as journey with the company is concerned.

Thank You .