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OF

The world’s most recognized trademark it is


recognized by 94% of the world’s population
TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION

1: INTRODUCTION
1.1: A brief insight- The FMCG Industry in India
1.2: A brief insight- The Beverage Industry in India
Figure 1: Beverage Industry in India
CHAPTER 2: THE COCA-COLA COMPANY
2.1: History
2.2: History of Bottling
Figure 2 Contour bottle design
2.3: The Coca-Cola Bottle over the Years
Figure 3: The Coca-Cola Bottle over the Years
2.4: Production
2.5 Brand Portfolio
2.6: Manifesto for Growth
2.6.1: Values
2.6.2: Mission
2.6.3: Vision for Sustainable Growth
Figure 4: Vision for Sustainable Growth
CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED
3.1: About the Company
Figure 5: Location of COBO, FOBO and Contract packers
3.2: Manifesto for Growth
3.2.1:Values
3.2.2:Vision for Sustainable Growth
3.2.3:Mission

3.2.4: Quality Policy

3.3: Organization Structure of Coca-Cola India

Figure 6: Organization Structure of Coca-Cola India

Figure 7: Organization Structure of Coca-Cola India

3.4: Organization Structure of the Sales DepartmentinHCCBPL


Figure 8: Organization Structure of the Sales Department

3.5: Manufacturing Unit of HCCBP


Figure 9: Chain followed from Manufacture to Distribution

3.6: Manufacturing process at HCCBPL


Figure 10: Manufacturing process

3.7: Business Plan model at HCCBPL


Figure 11: Business Plan model at HCCBPL

CHAPTER 4: PRODUCCTS
4.1: Packaging detailS
CHAPTER 5: PROJECT:
Distribution network
CHAPTER 6: Methodology
6.1: Research Methodology
6.2: Data Analysis
6.3: Findings
6.4: Suggestions
CHAPTER 7: CONCLUSION
DATA SOURCES
APPENDIX
CHAPTER 1: INTRODUCTION

 
• Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8,
1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic
beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage
concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain
wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as
concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and
markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s.
Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has
successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small
amount of money- a billion times a day.”
•  
• The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive
production and distribution system in the world. More than anything, that system is dedicated to people
working long and hard to sell the products manufactured by the Company. This unique worldwide system has
made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from
Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty
consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure
for hundreds of millions of people every day.
• The Company aims at increasing shareowner value over time. It
accomplishes this by working with its business partners to deliver .

• Satisfaction and value to consumers through a worldwide system


of superior brands and services, thus increasing brand equity on a
global basis. They aim at managing their business well with people
who are strongly committed to the Company values and culture
and providing an appropriately controlled environment, to meet
business goals and objectives. The associates of this Company
jointly take responsibility to ensure compliance with the
framework of policies and protect the Company’s assets and
resources whilst limiting business risks.
1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

• Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a
quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they
do for other products.

• The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe
problems on account of increased competition from small and regional players and from slow growth across its
various product categories. As a result, most of the companies were forced to revamp their product, marketing,
distribution and customer service strategies to strengthen their position in the market.

• By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the
liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new
domestic and foreign products through different media, such as television and the Internet. Apart from this, social
changes such as increase in the number of nuclear families and the growing number of working couples resulting
in increased spending power also contributed
• 
• to the increase in the Indian consumers' personal consumption. The realization of the customer's growing
awareness and the need to meet changing requirements and preferences on account of changing lifestyles
required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive
impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization,
and qualified manpower also boosted the growth of the organized retailing sector.
• HLL led the way in revolutionizing the product, market, distribution and service formats of the
FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution
and service formats. The FMCG sector also received a boost by government led initiatives in the
2003 budget such as the setting up of excise free zones in various parts of the country that
witnessed firms moving away from outsourcing to manufacturing by investing in the zones.

• Though the absolute profit made on FMCG products is relatively small, they generally sell in large
numbers and so the cumulative profit on such products can be large. Unlike some industries, such
as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the
economy starts to dip. A person may put off buying a car but he will not put off having his dinner.

• Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market
dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG
sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is
worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian
region.
• . The FMCG sector, which is growing at the rate of 9% is the fourth
largest sector in the Indian Economy and is worth Rs.93000 crores.
The main contributor, making up 32% of the sector, is the South
Indian region. It is predicted that in the year 2014, the FMCG sector
will be worth Rs.143000 crores. The sector being one of the biggest
sectors of the Indian Economy .
•  
• It will provide up to 4 million jobs. (Source: HCCBPL, Monthly
Circular, March)

• The FMCG sector consists of the following categories:


 
The FMCG sector consists of the following
categories:-
• Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and
Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players
being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.
• 
• Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners
(Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal
polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket
Colman.
• 
• Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals,
Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee,
Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded
rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola,
Cadbury, Pepsi and Dabur
• 
• Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB
•  
• 1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT
•  
• In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly
innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.
•  
•  
• BEVERAGES
• Alcoholic
• Non-Alcoholic
• Carbonated
• Non-carbonated
• Cola
• Non-Cola
• Non-Cola
• FIGURE 1: BEVERAGE INDUSTRY IN INDIA
•  
• The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right
person. The different ways of segmenting it are as follows:
•  
• Beverages:-
• Alcoholic , Non Alcoholic

• Carbonated , Non Carbonated

• Cola , non cola non cola


• BEVERAGE INDUSTRY IN INDIA
•  
• The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The
different ways of segmenting it are as follows:
•  
• Alcoholic, non-alcoholic and sports beverages
•  
• Natural and Synthetic beverages
•  
•  
• In-home consumption and out of home on premises consumption.
•  
• Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
•  
• Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.
•  
• If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in
two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions
are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address
this issue so as to encourage regular consumption as well as and to make the industry more affordable.
• Four strong strategic elements to increase consumption of the products of the beverage industry in India are:
•  
• The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy
consuming beverages.
•  
• The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have
while consuming the beverages.
•  
•  
• Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste,
relaxation,
•  
•  
• stimulation, refreshment, well-being or prestige relevant to the category.
• Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and
consume.
• The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to
look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall
growth of the food and beverage industry in the economy.
•  
CHAPTER 2: THE COCA-COLA COMPANY
­
2.1: HISTORY

•  

• John Smyth Pemberton, a pharmacist, first introduced Coca-Cola in the year 1886 in Atlanta, Georgia when he concocted
caramel-colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a
jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated
water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed
“delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.
• 
• Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned “Coca-Cola” in the
unique flowing script that is famous worldwide even today. He suggested that “the two Cs would look well in
advertising.” The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try
“the new and popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings,
with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment.
• 
• By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup,
shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his
efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the
beverage he created. He gradually sold portions of his
•  business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G.
Candler, an entrepreneur from atlanta
• By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and
control of the Coca-Cola business. Within four years, his merchandising flair had helped expand
consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical
business and focused his full attention on the soft drink. With his brother, John S. Candler, John
Pemberton’s former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia
corporation named the Coca-Cola Company. The trademark “Coca-Cola,” used in the marketplace since
1886, was registered in the United States Patent Office on January 31, 1893.
•  
• The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was
opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following
year. In 1895, three years after The Coca-Cola Company’s incorporation, Mr. Candler announced in his
annual report to share owners that “Coca-Cola is now drunk in every state and territory in the United
States.”
•  
• As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in
1898 was the first headquarters building devoted exclusively to the production of syrup and the
management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors
for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more
than sixty years of leadership took the business to unsurpassed heights of commercial success, making
Coca-Cola one of the most recognized and valued brands around the world.
bottling
• 2.2: HISTORY OF BOTTLING
•  
• Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but
it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today.
•  
• YEAR WISE HISTORY OF BOTTLING:
•  
• Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the
store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a
Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no
action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales.
•  
• Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a
meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola
across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their
venture.
• Years 1900-1909: Rapid growth

The three pioneer bottlers divided the country into territories and sold
•  
•  
• bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling
technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling
plants were operating, most of them family-owned businesses. Some were open only during hot-
weather months when demand was high.
•  
• Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group
representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle.
A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour
Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today,
it is one of the most recognized icons in the world.

• In the 1920s: Bottling overtakes fountain sales
•  

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady
growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the
forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.
•  
• In the 1920s and 1930s: International expansion

Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to
establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy
and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries.
•  
•  
•  
• In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for
bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were
later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's
worldwide business.
• In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type-the
traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce
versions. Cans were also introduced, becoming generally available in 1960.
• In the 1960s: Introduction of new brands
•  
• Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and
Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke,
followed by PowerAde and Fruitopia in the 1990s.
• In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of The Coca-Cola
Company merged and evolved into international mega chains. Such customers
required a new approach.
• In the 1990s: New and growing markets
•  
• Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company
invested heavily to build plants in Eastern Europe. As the century closed, more
than $1.5 billion was committed to new bottling facilities in Africa.
• 21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as consumers seek
brands that honor local identity and the distinctiveness of local markets. As
was true a century ago, strong locally based relationships between Coca-Cola
bottlers, customers and communities are the foundation on which the entire
business grows.
Coca cola bottles over the years
• 2.4 Production
• 
• Ingredients
• Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
• Caffeine
• Phosphoric acid
• Caramel color (E150d)
• Natural flavorings
•  A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar, approximately 10 teaspoons),50 mg of sodium,
0 grams fat, 0 grams potassium, and 140 calories.
• 
• Formula of natural flavorings
•  Coca-Cola formula:
• 
• The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are listed on the side of the bottle or can) is
a trade secret. The original copy of the formula was held in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust
Company, was the underwriter for the Coca-Cola Company's initial public offering in 1919. On December 8, 2011, the original secret
formula was moved from the vault at SunTrust Banks to a new vault containing the formula which will be on display for visitors to its
World of Coca-Cola museum in downtown Atlanta.
• 
• 
• A popular myth states that only two executives have
access to the formula, with each executive having only half
the formula The truth is that while Coca-Cola does have a
rule restricting access to only two executives, each knows
the entire formula and others, in addition to the
prescribed duo, have known the formulation process.
• On February 11, 2011, Ira Glass revealed on his PRI radio
show, This American Life, that the secret formula to Coca-
Cola had been uncovered in a 1979 newspaper. The
formula found basically matched the formula found in
Pemberton's diary.
• Logo design
•  
• The famous Coca-Cola logo was created by John Pemberton's
bookkeeper, Frank Mason Robinson, in 1885.Robinson came up
with the name and chose the logo's distinctive cursive script.
The typeface used, known as Spencerian script, was developed in
the mid-19th century and was the dominant form of formal
handwriting in the United States during that period.
• Robinson also played a significant role in early Coca-Cola
advertising. His promotional suggestions to Pemberton included
giving away thousands of free drink coupons and plastering the
city of Atlanta with publicity banners and streetcar signs
• 2.6: MANIFESTO FOR GROWTH
•  
• 2.6.1: VALUES:
•  
• Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values
being:
•  
• LEADERSHIP: The courage to shape a better future
•  
• PASSION: Committed in heart and mind
•  
• INTEGRITY: Be real
•  
• ACCOUNTABILITY: If it is to be, it’s up to me
•  
• COLLABORATION: Leverage collective genius
•  
• INNOVATION: Seek, imagine, create, delight
•  
• QUALITY: What we do, we do well
• 2.6: MANIFESTO FOR GROWTH
•  
• 2.6.1: VALUES:
•  
• Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values
being:
•  
• LEADERSHIP: The courage to shape a better future
•  
• PASSION: Committed in heart and mind
•  
• INTEGRITY: Be real
•  
• ACCOUNTABILITY: If it is to be, it’s up to me
•  
• COLLABORATION: Leverage collective genius
•  
• INNOVATION: Seek, imagine, create, delight
•  
• QUALITY: What we do, we do well
Vision for sustainable growth
• CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES
• PRIVATE LIMITED (HCCBPL)
•  
• 3.1: ABOUT THE COMPANY
•  
• Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the
Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed
the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993
after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant
ownership of the top soft drink brands of the nation. With access to 53 of Parle’s plants and a well set bottling
network, an excellent base for rapid introduction of the Company’s International brands was formed. The Coca-
Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by
Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian
market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the
Coca-Cola Company.
•  In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its
100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based
on numerous commitments and stipulations which the Company agreed to implement in due course. One such
major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor
of resident shareholders by June 2002.
• Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27
Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO)
and a network of 29 Contract Packers that facilitate the manufacture process of a range of products
for the company. It also has a supporting distribution network consisting of 700,000 retail outlets
and 8000 distributors. Almost all goods and services required to cater to the Indian market are
made locally, with help of technology and skills within the Company. The complexity of the Indian
market is reflected in the distribution fleet which includes different modes of distribution, from 10-
tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian
cities and trademarked tricycles and pushcarts.
•  
• “Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life ho to aisi”
for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This resulted in a 37% growth rate
in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita
consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable
glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted
for over 80% of India’s new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that
everyone who touches their business should benefit, thereby inducing them to uphold these
values, enabling the Company to achieve success, recognition and loyalty worldwide.
LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

location of cobo fobo and contract packing in india


• 3.2: MANIFESTO FOR GROWTH
•  
• 3.2.1: VALUES
•  
• The values that the employees in the Company are expected to keep up to and work by regularly are as follows:
•  
• LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy and zeal, to deliver outstanding
results.
•  
• INNOVATION: To continuously strive for progress and reach the next level of excellence in everything we do.
•  
•  
•  
• PASSION: To be deeply committed and display drive and energy in the quest to deliver outstanding performance.
•  
• TEAMWORK: To unite for greater strength and work collectively as a group towards the achievement of common goals.
•  
• OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the lowest appropriate level.
•  
• ACCOUNTABILITY: To be individually and transparently accountable to our colleagues for delivering agreed targets and
goals.
• 3.2.3: MISSION
•  
• To create consumer products, services and communications, customer service and bottling system strategies,
processes and tools in order to create competitive advantage and deliver superior value to;
•  
• Consumers as a superior beverage experience
•  
• Consumers as an opportunity to grow profits through the use of finished drinks
•  
• Bottlers as an opportunity to grow profits in volumes
•  
•  
• Bottlers as a trademark enhancement and positive economic value added
•  
• Suppliers as an opportunity to make reasonable profits when creating real value-added in an environment of
system-wide team work, flexible business system and continuous improvement
•  
• Indian society in the form of a contribution to economic and social development.
•  
• 3.2.4: QUALITY POLICY
•  
• “To ensure customer delight, we commit to
quality in our thoughts, deeds and actions by
continually improving our processes…Every
time.”
•  
ORGANIZATION STRUCTURE OF COCA-COLA
IN INDIA
Chief Executive
Officer

Vice President
Supply Chain

Chief Finance
Officer

Human Resource
Director

Vice President
BSG

Regional Vice
President
(North)

Regional Vice
President
(Central)
Region Vice
President

AGM/AOD
Unit 1

AGM/AOD
Unit 2

AGM/AOD
Unit 3

AGM/AOD
Unit4

Region Finance

Region Human
Resource

Region Customer
Service

Region External
Affairs

Region Cold Drink

Region Legal

Region BSG

Region
Director/Manager
Market Execution

Region Capability
Region Channel
Management
ORGANIZATION STRUCTURE OF THE SALES
DEPARTMENT IN HCCBPL
AGM/AOD

Finance
General
Manager
Plant Human Sales
Route to Resource
Manage Manager
r Market Manager

Area
Area Sales Channel
Capability
Manager Manager
Manager

Sales
Executiv Marketin
e g Sales
Trainers

Distributors
Market Key
And
Develop Accounts
er Salesmen
• 3.5: MANUFACTURING UNIT OF HCCBPL
•  
• The manufacturing unit of HCCBPL, situated at Bidadi, is the
third largest plant and one of the bottling operations owned
by the company. The Plant has one PET line which has the
capacity of yielding 209 bottles, per minute, two RGB
(Returnable glass bottles) lines which yields 600 bottles per
minute each and one Juice line which yield 155 bottles per
minute. It caters to the whole of South Karnataka through a
network of more than 80 distributors. There are three depots
in Bangalore; North Depot, East Depot and Mega Depot.
Manufacturing process
• The manufacturing of the products of Coca-Cola involves the following steps:
•  
• Water is received from the River Cauvery and it passes through the water treatment plant, further passing
through the sand filter and the activated carbon filter, so as to attain pure cleansed water.
•  
• In the syrup room, the concentrate received from another bottling plant situated at Pune, is blended with
the sugar syrup
•  
• Once both the water and the final syrup are ready, they are both mixed together and sent to the
carbonator section where Carbon Dioxide is added to the mixture to form the final product.
•  
• On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and washed
for the purpose of filling in the final product in it. This step does not take place in the PET bottle line as the
bottles once used are disposed.
•  
• The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET bottles),
labeled and cased in order to be sent into the warehouse for distribution.
•  
• 3.8: DISTRIBUTION NETWORK
•  
• HCCBPL has a wide and well managed network of salesmen appointed for taking up the
responsibility of distribution of products to diverse parts of the cities. The distribution
channels are constructed in such a way that the demand of customers is fulfilled at the
right place and the right time when it is needed by them.
•  
• A typical distribution chain at HCCBPL would be:
• Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse ---
Retail Stock --- Retail Shelf --- Consumer

• The customers of the Company are divided into different categories and different routes,
and every salesman is assigned to one particular route, which is to be followed by him on
a daily basis called as beat. A detailed and well organized distribution system contributes
to the efficiency of the salesmen or MD. It also leads to low costs, higher sales and higher
efficiency thereby leading to higher profits to the firm.
• 3.8.1: DISTRIBUTION ROUTES
•  
• The various routes formulated by HCCBPL for distribution of products are as follows:
•  
• Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically
consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these
customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month.
• Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc. Hotel ASIA
•  
• Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in
order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are
stacked up by them so as to avoid shortage or non-availability of the product. Examples:
Departmental stores, Super markets etc.
•  
• Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these
outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the
products are consumed at a fast pace.
• Examples: Small sized bars and restaurants, educational institutions etc.

• General: Under this route, all the outlets that come in a particular area or an area along with its neighboring areas are catered to.
The consumption period is not taken into consideration in this particular route.
• 3.8.2: DISTRIBUTION SYSTEM
•  
• Direct distribution: In direct distribution, the bottling unit or the bottler partner has
direct control over the activities of sales, delivery, and merchandising and local
account management at the store level.
•  
• Indirect distribution: In indirect distribution, an organization which is not part of the
Coca-Cola system has control on one or more of the distribution elements (Sales,
delivery, merchandising and local account management)
•  
• Merchandising: Merchandising means communication with the consumer at the
point of purchase to convey product benefit, value and Quality. Sales people and
delivery personnel both have this responsibility. In certain locations special teams
who go into business locations to specifically merchandise our products.
•  
• 3.8.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS
•  
• The Distribution process mainly consists of three departments:
•  
• Distribution Department: It appoints distributors and establishes a distribution network,
processes approved sale orders and prepares invoices, arranges logistics and ship products, co-
ordinates with distributors for collections and monitors distribution stocks and their set-up.
•  
• Finance Department: It checks credit limits and approves sales orders in compliance with the
credit policy followed by the firm, records collections from distributors, periodically reconciles
outstanding balances from distributors, obtains balance confirmation from distributors and
follows up outstanding balances.
•  
• Shipping or Warehousing Department: It dispatches goods as per approved by order, ensures
that stocks are dispatched on a FIFO basis, ensures physical control over load out area and
updates warehouse stock records in a timely manner.
•  
• 3.9: SWOT ANALYSIS OF HCCBPL
•  
• 3.9.1: STRENGTHS
•  
• DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of
the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution
network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet
includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow
alleyways of Indian cities and trademarked tricycles and pushcarts.
•  
• STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the
world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add
up to the brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is one of the very few things that
are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in
a survey by consultancy Interbrand. It was estimated that the Coca-Cola brand was worth $70.45billion.
(http://news.bbc.co.uk/1/hi/business/4706275.stm)
•  
• LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning
and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.
•  
•  
• Distribution is done both in primary and
secondary.
• Primary means from manufacturer plant to
distributors godown.
• Secondary means from distributors godown to
retailers outlet.
• All the working members of coke have to look
after both the primary and secondary activities.
Distributors in jammu city
• In jammu city there are 8 distributors out of which
upon 4 I have worked.(top four)
• Sri Sai distributors ( Rehari Chungi)
• BEE EMM traders (Janipur)
• Khajuria Traders (Poonch House, Talab Tillo)
• Sahil Enterprises (Talab Tillo)
• MSD traders (Bus Stand)
• Friends cold drink (Sangrampur)
• Dheer cold drink (Lower Paloura)
• Out of all 8 Sahil enterprises is leading with
23% growth.
• Reasons for growth:-
• Large area to cover. A tough thing but still
managed to use it positively.
• Full dedication towards work.
• Better contacts with shopkeepers.
Stock in Pet and Rgb is sold in different volume from different distributors.
Ranging in an average from 200 units to 500 units per day, per distributor
depending upon area

Also there is a RTM who looks after route to market briefly known as supply
chain of the coca cola company.

Targets are being set for each and every distributor , from the top
management to lower order everyone is given target to achieve .

Certain benefits and incentives are there upon showing skills of


management..
VIZIES
• In coke language vizies means refrigerator. A container to cool
the containers. In jammu city there are 5 types of vizies .
These are:-
• 7 caser
• 9 caser
• 15 caser
• 20 caser
• 30 caser .
• Each vizi is provided to shopkeepers keeping in view its market
area consumption... More consumption bigger the size of vizi..
• 3.9.2: WEAKNESSES
•  
• LOW EXPORT LEVELS: The brands produced by the company are brands produced worldwide
thereby making the export levels very low. In India, there exists a major controversy concerning
pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the
Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said
aerated waters produced by soft drinks manufacturers in India, including multinational giants
PepsiCo and Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos-
pesticides that can contribute to cancer and a breakdown of the immune system. Therefore,
people abroad, are apprehensive about Coca-Cola products from India.
•  
• SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF
SCALE: The Company’s operations are carried out on a small scale and due to Government
restrictions and ‘red-tapism’, the Company finds it very difficult to invest in technological
advancements and achieve economies of scale.
•  
• 3.9.3: OPPORTUNITIES
•  
• LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very high as compared to
any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this
includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led
by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to
cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore,
Coca-Cola amounts for 74% of the beverage market.
•  
• EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like
Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the
minds of the people towards the Coke products produced in India so that there will be a considerable amount of
exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than
just domestic market.
•  
• HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable income. Unlike olden times, people now have the power of
buying goods of their choice without having to worry much about the flow of their income. The beverage industry
can take advantage of such a situation and enhance their sales.
•  
• 3.9.4: THREATS
•  
• IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years and a majority
of the people are educated, the export levels have gone high. People understand trade to a large extent and the
demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than
have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a
whole in turn affecting the sales of the Company.
•  
• TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage
on the consequence from production to consumption. When a license is issued, the production capacity is
mentioned on the license and every time the production capacity needs to be increased, the license poses a
problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of
the Company and pose problems.
•  
• SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per
capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute
dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special
occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems
might lead to a slowdown in the demand for the company’s products.
•  
• 3.10: COMPETITORS TO HCCBPL
•  
• The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks.
•  
• The key competitors in the industry are as follows:
•  
• PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends for the World's # 2, carbonated soft-
drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo
sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-
drink tea. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs
to Pepsi.

• Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products, Baby foods and Chocolates.
But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition
to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier
when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to
growing health awareness among people.
•  
• Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever since times and people have laid all their trust
in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which
is packaged fresh fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange
• CHAPTER 4: PRODUCTS
•  
•  
• The Coca-Cola Company offers a wide range of products to the
customers including beverages, fruit juices and bottled mineral water.
The Company is always looking to innovate and come up with, either
complete new products or new ways to bottle or pack the existing
drinks. The Coca-Cola Company has a wide range of products out of
which the following products are marketed by HCCBPL:
•  
• In the Cola Section:
In lemon section
In orange section
In juice section
Packaging details
 Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml ca
ml and 300 ml returnable glass bottles; 500+100 ml, 1
and 2 litre PET bottles

300 ml 330 ml 200 ml 600 ml 2


Diet Coke: 330 ml can and 500 ml PET bottle
• Maaza: 200 ml and 250 ml Returnable Glass
Bottle; 500+100 ml and 1litre+200 ml free PET
bottles and the newly introduced 200 ml Tetra
Pack
• Minute Maid Pulpy Orange: 400 ml and 1 litre
PET bottles
• Kinley Soda Water: 300 ml returnable glass
bottles, 500+100 ml free and 1.5 litre PET
bottles.
• 5.3: OBJECTIVE OF THE STUDY
• The main objective of this study lies in
studying and understanding the present offers
and schemes providing by the Coca-Cola and
how much retailer satisfying with present
offers.
• CHAPTER 6 METHODOLOGY______________________
• 
• 6.1 RESEARCH METHODOLOGY
• 
• This research involved a study, which was descriptive as well as explorative in nature it basically aims at gathering data about how the coca-cola
scheme playing in the mind of shopkeepers & consumer.
• 
• 
• METHODS OF DATA COLLECTION:
• 
• THERE ARE TWO TYPES OF DATA
• 
• 1. Primary data
• 2. Secondary data
• 
• 
• 1) Primary data collection: Primary data can be collected by three methods.
• 
• Observation
• Experiment
• Surveys
•  
•  
•  
• Sampling plan: sampling plan consists of
•  
• Sampling unit: The retailer of Grocery shop, general store, provision store, tea
stall and dhaba walas was selected from different places of jammu city.
•  
• Sampling size: 150 Outlets. Per MD.
•  
• Sampling procedure: Simple random sampling procedure was followed
•  
• Sampling method: Data were collected by retailer survey. The retailers are
directly contacted and interviewed at their retail counter.
•  
• 2) Secondary data collection: As secondary data were not available with
shopkeepers as well as stockist, so these were collected from company records.
• SURVEY ANALYSIS
•  
• THE SURVEY WAS CONDUCTED IN DIFFERENT LOCATION OF VIZAG. A TOTAL SURVEY OF 200
OUTLETS WAS CONDUCTED.
•  
• OBSERVATION
•  
• 1. I visited about 200 outlets.
•  
• 2. Out of 200 shops covered in different areas, I focused on covering different shops according to
location, so that I can know where coca-cola products have the best penetration. Among the
shop covered, 17% were on the chauraha, 35% were on the main road, 28% in the market and
20% were near a residential area.
•  
• 3. I assigned the various shops covered into different categories. The various categories covered
were Grocery, Confectionary, Bakery, Juice Shops, Ice Cream parlors, Restaurant, Food Points,
P.C.O, Dairy, Pan Shops and Tea stalls.
• 6.3 FINDINGS
•  
• Which type of promotions do you like?
•  
• Volume Linked Schemes
• Cash Discount Schemes
• Most of the shopkeepers showed their willingness with the cash discounted schemes . They
calculate the schemes provided to them by company in monetary transaction…after calculating
they decide whether are going to take the product or not.
•  
• INTERPRTATION:-
•  
• As per the above question most of the retailers like cash discounts on their each purchase from
the company. In my survey most of the outlets are groceries so their sale is limited when there is
no need of more volume they don’t want other two schemes.
• So as per my study if company want to launch scheme better it should be a cash
discount type.
Thank you

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