SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

In Partial Fulfillment of Requirement for the

Award of Master in Business AdministrationSubmitted By:

AMAYA KUMAR PATRORoll No: 11MBAS03059

Submitted To:

DDCE, SAMBALPUR UNIVERSITYEXAMINERS CERTIFICATE

The Summer Training Report of Amaya Kumar Patro Marketing Mix of Coca-Cola Is approved and is acceptable in quality and form.

Internal Examiner

External Examiner

DECLARATION

I, Amaya Kumar Patro undersigned hereby declare that this report entitled Marketing Mix of Coca-Cola in Hindustan Coca Cola Beverage Ltd with the requirement for the degree of Master in Business Administration is the record of original work done by me, under the guidance of Mr. Atulya Kumar Samantarya, Marketing (ASM). The empirical findings in this report are based on the data collected by my self.

Amaya Kumar Patro

Roll No. : 11MBAS03059

CERTIFICATEThis is to certify that Mr. Amaya Kumar Patro, a student of DDCE, Sambalpur University has prepared a report titled Marketing Mix of Coca Cola as a partial fulfillment of Master in Business Administration. This has not formed a basis for the award of any Degree /Diploma by this university or any other university.

We wish all success in his future endeavor.

Atulya Kumar Samantarya

Marketing (ASM)IMSTCERTIFICATE OF GUIDE

This is to certify that Mr. Amaya Kumar Patro, bearing the Roll No. 11MBAS03059 is a bonafide student of DDCE, Sambalpur University. He has conducted the project on Marketing Mix of Coca Cola under my guidance as per the partial fulfillment of the requirement of the degree of MBA.To the best of my knowledge he has work sincerely to being this report.

Srikant Chandra PradhanACKNOWLEDGEMENTI wish to take this opportunity to express my deep sense of gratitude to Srikant Chandra Pradhan, IMST, ANGUL for his invaluable guidance in this endeavour. He has been a constant source of inspiration and I sincerely thank him for his suggestions and help to prepare this report.

I express my deep sense of gratitude to my Company Guide Mr. Atulya Kumar Samantarya of Hindustan Coca Cola Beverage Ltd, for offering me suggestions and help in successfully completing my project report.

Finally, It is my foremost duty to thank all my respondents, who helped me to complete my project work without which this project would not have been possible.

Amaya Kumar Patro

CERTIFICATE OF APPROVAL

This is to certify that the summer training report entitled:

Marketing Mix of Coca Cola

Submitted by Amaya Kumar Patro (Roll No 11MBAS03059), Sambalpur University, Burla towards partial fulfillment of the requirements for the award of the degree of Master of Business Administration (MBA) is a bona fide record of the work carried out by him under the able guidance of Srikant Chandra Pradhan, Faculty, IMST, ANGUL.

(Approval of the Center Director)

PREFACE

The MBA curriculum is designed in such a way that student can grasp maximum knowledge and can get practical exposure to the corporate world in minimum possible time. Business schools of today realize the importance of practical knowledge over the theoretical base

The research report in necessary for the partial fulfillment of MBA curriculum and it provides an opportunity to the researcher in understanding the industry with special emphasis on the development of skills in analyzing and interpreting practical problems through t he application of management theories an techniques. It is a new platform of learning through practical experience, which incorporates survey and comparative analysis. It gives the learner an opportunity to relate the theory with the practice, to test the validity and applicability of his classroom learning against real life business situations.

CONTENTS

Chapter 1IntroductionChapter 2Beverage Industry In India

Chapter 3Coca Cola World Wide

Chapter 4Manufacturing Process

Chapter 5Brand In Coca- Cola

Chapter 6Theoretical Framework

Chapter 7Distribution Channels Of Coca-Cola

Chapter 8Cost Analysis

Chapter 9Research Methodology

Chapter 10Conclusions

INTRODUCTION

In order to increase more wealth, most of the people depend on business. So after a good deal of thought Government has introduced MBA course, so that business may be managed and guided and developed methodicallyManagement as a process by which manager create, direct, maintain and operate purposive organization through system, systematic co-ordinate co-operative human effort. Management is the art of getting thing done through and with the people in formally organized groups. It is the concerned with ideas, things and people. Ideas represent though, conceptions, innovations, opinions and researches, things denotes activities or task people may be taken to be employs, workers and subordinates who work within the organization.

On the societal front, we have the family, the clubs, the societies and art and cultural (ethnic) groups. In business too, there are groups in the forms of firms, companies and conglomerates. It is the presence of groups that give rise to the concept of organization.

In the present competitive scenario the emergence of globalization and liberalization policy has brough explosive growth in global trade. It has removed all trade barriers. It triggers companies to extend their market rather than to remain confined within domestic region. This is the reason why MNCS are entering into a domestic market. Though competition among firms create problem for one to exist. To deal with such critical situation companies are required to measure their status in the market. Previously the seller was the ruler in the market as oligopoly market was continuing.

In the modern context, with the increase in the number of seller, customers are the sole regulator of the market. To wider the coverage of market it is essential to establish the image of the product in the mind of the customer.After its exit from India in the 1970s, Coca-Cola returned to India 1993. It was formally launched in 1994 when it took over the Parle brands such as Thumps Up, Gold Spot and Limca. Coca-Cola also bought over the distribution system from Parle. The bottlers of Coca-Cola India were franchisees who paid a certain amount of royalty to Coca-Cola for bottling its products but in order to make their distribution system more effective Coca-Cola India took over its bottlers around 1996-97-98. This has seen a tremendous increase in the total market share of Coca-Cola in India, which according to the research conducted by ORG-MARG is at 59% and in Mumbai it is around 47%. The turnover for Coca-Cola for the year 1999 has been around 2800 crores.

EXECUTIVE SUMMARY

Distribution plays a key role in the end profitability of any organization. In a beverage giant like Coca Cola, distribution is the one main factor that has helped it to create a near monopolistic situation in soft drink Industry. Coca Cola India is divided into the North, South and Central Zones. This report deals with the study conducted at Hindustan Coca Cola Beverages Pvt Ltd, Bhubaneswar which is a wholly owned subsidiary of Coca Cola India. It specifically handles the operations in Orissa.

Distribution cannot be isolated without considering the manufacturing process, product type, the plant location and the financial ability of the company. The entire logistical operation therefore has to be considered before setting up a distribution network.

The Raw material procurement in this company is economical and manufacturing activities take place at the Khurda plant. The company has two production units in Orissa, one at Khurda and other at Rourkela, all operating at around 95-98 % efficiency, which presents a very healthy picture. The conversion of raw material to final product is well mechanized using automatic flow of materials from one unit to another.

At Hindustan Coca-Cola there are two intermediary levels, the distributors and the retailers (customers) operating before the goods reach the final consumer. The circular distribution network where the empty bottles are returned to the bottling plant is what distinguishes the soft drink distribution chains from others.

The entire channel management decisions, the major channel alternatives available, the strategies required to successfully make the product available to the consumer are highlighted. Today the only competition that Coke faces is from Pepsi Foods and juice manufactures. With a well-established market and being voted as the most valuable brand in 2000 Coca Cola Pvt. Ltd is constantly touching new horizons of success.

The following report aims at giving a holistic picture of the operations at Hindustan Coca Cola Beverages Pvt Ltd, and how these very operations contribute to its overall successful functioning. It also throws light on the various strategies and promotional activities undertaken by the organization in order to sell its products. The report reveals facts as to how quickly the organization is able to distribute the finished goods to the customers at the least cost and achieve high market share and profit.

BEVERAGE INDUSTRY IN INDIANon-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under non-carbonated category. The soft drinks market till early 1990s was in hands of domestic players like Campa,

Thums up, Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the market has come totally under their control. While world wide Coke is the leader in carbonated drinks market in India it is Pepsi which scores over Coke but this difference is fast decreasing (courtesy huge ad-spending by both the players). Pepsi entered Indian market in 1991 coke re-entered (After they withdrew in 1977) in 1993.

Pepsi has been targeting its products towards youth and it has struck right chord with the market and the sales have been doing well by sticking to this youth bandwagon. Coke in a span of 7 years of its operations in the county it changed its CEO four times but finally they seem to have started understanding the pulse of Indian consumers.

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption. Fountains also dispense them in disposable containers.

Segmentation

The market can also be segmented on the basis of types of products into cola products and non-cola products. Non-cola can be divided into 4 categories based on the types of flavors available, namely:

Orange

Cloudy Lime

Clear Lime

Mango

i. Orange flavor based soft drinks. The segment is largely dominated by national brands like Fanta of Coca Cola and Mirinda Orange of PepsiCo.

ii. Cloudy Lime flavor is largely dominated by Limca of Coca cola and Mirinda Lemon of PepsiCo...

Clear Lime: this segment of the market witnessed good growth in with all the players launching their brands in the segment. The brands available in this segment are 7 Up of Pepsi, Sprite of Coca Cola. iii. Mango: The leading brands in this segment are: Maaza of Coca Cola, Mangola (Earlier of Dukes now of PepsiCo) and Slice of PepsiCo & Frooti

Major Players

The soft drink market in India is dominated by the two global majors Pepsi and Coca-Cola. Coca-Cola, which had winded up its India operations during the introduction of the FERA regime, reentered India 16 years later in 1993. Coca-Cola acquired a major chunk of the soft drink market by buying out local brands Thumps Up, Limca and Gold Spot from Parle Beverages. Coca Cola has also acquired Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport Cola in early 1999 and now recently in Oct '00 it acquired distribution rights of these brands from IFB Agro Limited. Pepsi although started a couple of years before Coca Cola in 1991, has a lower market share today. It has bought over Mumbai based Dukes range of soft drink brands. Both the cola manufacturers come up with their own market share figures and claim to have increased their share. Recently in August '00 Pepsi claimed to have increased its market share for first five months of calendar year 2000, to 49% from earlier levels of 47.3%, while Coke claims to have increased its share in the market to 57% in the same period from 55% in the corresponding period last year.

COCA-COLA WORLDWIDE

The Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people around the world. Syrups, concentrates and beverage bases for Coca-Cola, the Company's flagship brand, and over 230 other Company soft-drink brands are manufactured and sold by the Coca-Cola Company and its subsidiaries in nearly 200 countries around the world.

By contract with the Coca-Cola Company or its local subsidiaries, local businesses are authorized to bottle and sell Company soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of quality and uniformity.

The Evolution of Coca Cola

Dr. John S. Pemberton in Atlanta, Georgia invented Coca-Cola in May 1886. The name "Coca-Cola" was suggested by Dr. Pemberton's bookkeeper, Frank Robinson. He penned the name Coca-Cola in the flowing script that is famous today. Coca-Cola was first sold at a soda fountain in Jacob's Pharmacy in Atlanta by Willis Venable. During the first year, sales of Coca-Cola averaged nine drinks a day, adding up to total sales for that year of $50. Since the year's expenses were just over $70, Dr. Pemberton faced a loss.

Today, products of the Coca-Cola Company are consumed at the rate of more than one billion drinks per day.

Trademark Origin:It has been said that if production plants and inventories of The Coca-Cola Company were to go up in flames overnight, any bank would lend the funds for rebuilding. The loan would be secured only on the value of the trademarks "Coca-Cola" and "Coke," the number-one soft drink worldwide.

Soon after John S. Pemberton prepared the first batch of Coca-Cola syrup in 1886, his friend and bookkeeper, F.M. Robinson, chose an alliterative name. He wrote the words in the now-familiar flowing script, and, in 1893, "Coca-Cola" was registered officially in the U.S. Patent and Trademark Office.

Early advertising discouraged calling the product "Coke." It urged "Ask for Coca-Cola by its full name; nicknames encourage substitution." Since people kept asking for "Coke," the Company relented to popular demand. In 1941, the trademark "Coke" received equal prominence in advertising with "Coca-Cola," and in 1945, "Coke" was registered as a trademark.

The shape and design of the contour bottle for Coca-Cola is also a U.S. registered trademark, one of the few package designs to receive this distinction. The bottle was designed in 1915 by Alexander Samuelson, an employee of the Root Glass Company of Indiana. Legend suggests that the bottle was shaped deliberately to resemble the fashionable hobble skirt.

Bottling System One of The Coca-Cola Company's greatest strengths lies in its ability to conduct business on a global scale while maintaining a local approach. At the heart of this approach is the bottler system. The Company has business relationships with three types of bottlers: (1) independently owned bottlers, in which it has no ownership interest; (2) bottlers in which it has invested and have a noncontrolling ownership interest; and (3) bottlers in which it has invested and has a controlling ownership interest.

During 1999, independently owned bottling operations produced and distributed approximately 27 percent of its worldwide unit case volume. Bottlers in which we own a noncontrolling ownership interest produced and distributed approximately 58 percent of its 1999 worldwide unit case volume. Controlled bottling and fountain operations produced and distributed approximately 15 percent. The company views certain bottling operations in which it has a non controlling ownership interest as key or anchor bottlers due to their level of responsibility and performance. The strong commitment of both key and anchor bottlers to their own profitable volume growth helps it to meet its strategic goals and furthers the interests of its worldwide production, distribution and marketing systems. These bottlers tend to be large and geographically diverse, with strong financial resources for long-term investment and strong management resources. These bottlers give the company strategic business partners on every major continent.

Brand Wagon

These aren't the only trademarks of The Coca-Cola Company. As lifestyles grew more diverse, consumers demanded soft drinks to meet different thirsts. For example, a consumer may want a sugar and caffeine-containing drink in the morning, a diet soft drink at lunch and a caffeine-free product in the evening. The extension of the Coca-Cola name began in 1982 with the introduction of diet Coke (also called Coca-Cola light in some countries). Diet Coke quickly became the number one selling low-calorie soft drink in the world. In 1983, caffeine-free versions of Coke and diet Coke were introduced. And, in 1985, Cherry Coke made its appearance. With these line extensions, mega brand Coca-Cola has more products that more people can enjoy more often and on more occasions than ever before. The name "Fanta" was first registered as a trademark in Germany in 1941, when it was used for a few years for a soft drink created from available materials and flavors. The name was then revived in 1955 in Naples, Italy, when it was used for the "Fanta" orange drink we know today. Fanta is now the #1 orange soft drinks in the world. The idea for the name of the lemon-lime soft drink, Sprite, came from early advertising. During the 1940s, an elf with silver hair and a big smile (and most often wearing a bottle cap for a hat!), was used in advertising for Coca-Cola. This character, known affectionately as the "Sprite Boy," urged consumers to buy more of the product.

In the late 1950s, the Company developed a citrus-flavored drink. The short, sharp and memorable sound of "Sprite" made it an ideal name for the new product. Since another company had been using the name since 1955, the Company had to purchase and register "Sprite" as its property. In 1961, Sprite made its U.S. debut.

Guiding principles of Coca Cola India

We will conduct ourselves and our business activities with the highest standards of honesty, integrity and professionalism.

We will recognize the positive contributions that we make as individuals and team members to produce our business success.

We will encourage a learning environment where people can constantly grow, develop and contribute.We will strive for excellence and seek continuous improvement in everything we do.

We will respect all stakeholders, including employees, partners and suppliers and instill them with a passion to deliver the highest quality goods and services.

We will foster initiative and creativity by empowering individuals to attain well-defined objectives.

Vision of Coca Cola India

Provide exceptional strategic leadership in the coca-cola India system- resulting in consumer and customer preference and loyalty, through coca-colas commitment to them, and in a highly profitable coca cola corporate branded beverages system.

Mission of Coca Cola India

customer service and bottling system strategies, processes and tools a 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 and volume.

TCCC as 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 teamwork, flexible business system and continuous improvement.

CCI Associates as superior career opportunity.

Indian society in the form of a contribution to economic and socio development.

Plant locations

The following are the main Divisions of the plant.

1. Khurda Plant- RGB (Returnable Glass Bottle), Pet bottles & Cans are manufactured here.

2. Rourkela Plant- RGB (Returnable Glass Bottle), Pet bottles & Cans are manufactured here

Transportation -The department is responsible for the dispatch of packed goods to the final destination described in detail later)

MANUFACTURING PROCESS

1.INGREDIENT DELIVERYSweetener

Team of professionals, work on selecting, auditing, sampling, testing, approving and then authorizing the sugar suppliers and the list of such authorized suppliers with approved sugar lots and along with the certificate of analysis are sent across to all the bottling unit for procurement.Secret formulaCreated in special concentrate plants, it's delivered, held and used under strict controls to maintain its integrity and security. Each unit of concentrate is especially identifiable to allow the "history" of each component to be researched at any stage of production, storage or use.

Co2 Formula

When delivered to the plant, carbon dioxide, or CO2, comes in cylinders for easy delivery and storage. But what is it? In essence, it's a colorless and odorless gas that provides the "fizz" for our beverages. But it's also a by-product of our breathing and used by plants and trees to produce oxygen.WaterSince water is a key component to all our beverages, its quality is critical. And, since public water quality varies around the world, each plant further treats the water it uses. This means that before water is added to any of our beverages; it's rigorously filtered and cleansed. We then continuously sample the water to ensure it meet our standards.Materials

Ingredients are not the only things delivered to the plant. Other materials such as bottles, cans, labels and packaging are also delivered. Our plants in India use refillable bottles, CANS, PET etc. in the Production Process, when bottles and cans are delivered to the plant; they are carefully inspected to ensure that they meet our exacting standards. Once these have passed initial inspection, they move on to be washed and/or rinsed.

2. WASHING AND RINSING

To ensure quality, each bottle is washed, sanitized and rinsed before being filled. While this sounds simple, the actual steps can differ by bottling plant. In India, our plants use refillable glass, cans or PET bottles. To ensure they meet our cleanliness standard, bottles are first hit with prerinse jets which remove any dirt or debris. They are then soaked in a high-temperature deep cleaning solution that removes any remaining dirt and sanitizes them. The bottles then move to the "hydro wash" where they are washed again with a deep cleaning pressure-spray.

3. MIXING AND BLENDINGH2O and SugarMixing and blending begin with the steps of mixing pure water with refined sugar, which creates simple syrup. The syrup is then measured for the correct amount of sugar.SecretFormula

Our secret formula is... still secret! That's right; the secret formula remains a mystery to the millions of people in nearly 200 countries that enjoys our refreshing beverages everyday. Even though we can't tell you the secret, you can be sure that LIFE TASTES GOOD with coca-cola.

H20andSyrup

With the syrup nearing its final state, we mix it with pure water, creating the finished uncarbonated beverage. However, the water and syrup must be mixed in right ratio. This is done by the beverage proportioning equipment. It accurately measures the correct ratio for each and sends this mixture to the carbonator

CO2Adding

Adding CO2 or carbon dioxide gas is the final touch that carbonates the beverages. Carbon dioxide not only gives our beverages their effervescent zest, but it also adds to the distinctive and familiar taste everyone has come to expect from our beverages.

4. FILLING

Once all the ingredients have been mixed and blended and the bottles have been cleaned and sanitized, we're ready to start filling. This is a surprisingly complex process requiring precision at each step. To begin with, bottles must be carefully timed as they move to the filler - synchronization is key. Once at the filler, bottles are either held securely in place by flexible grippers or precisely placed under filling valves by centering devices. Before the bottles can be filled, the inside of the bottles must be pressurized. This allows for the force of gravity itself to draw the beverage into the bottle - a process that ensures the smooth flow of liquid, with little to no foaming.

5. CAPPING

Once filled, bottles are then capped. We use different caps for different bottles - glass bottles are usually topped with a metal crown while "PET BOTTLES" are topped with a plastic screw-top. Each cap type then moves through different parts of the machine, which ensures each cap stays scratch free and is in the right position to be precisely placed on the bottle. As quality and freshness are key, we use a "no closure" detector during the capping process and a "go-no-go gauge" or "torque meter" after the bottles has been capped. The "no-closure" detector checks if a screw top or crowns has been placed on bottle. The process actually stops if the detector doesn't find a closure. The "go-no-go gauge" checks for the proper crown crimp and the "torque meter" checks to make sure the screw-top is good and tight. If the bottle cap isn't just right, the beverages can become flat or be affected in other ways. If this happens, the bottle is discarded.

6. LABELING

Once the bottles have been filled and capped, they move on to be labeled. A special machine dispenses labels from large rollers, cuts them and place on the bottles. For special labels such as commemorative bottles for football championships, the labels are sent to the bottling plants for approval, and then used for packaging. Depending on the occasion, some of these special bottles will go only to the specific locations. For example, a national football championship bottle will be sent only to the home town or state of the championship team.

7. CODING

The bottle is now ready to be coded. Each one of our beverages is marked with a special code that identifies specific information about it. The codes simply identify the date the beverages was bottled or canned. These codes identify the date, time, batch no. and the MRP. Product coding allows us to ensure that u receive our beverages at their flavorful best.

8.INSPECTION

We inspect bottles at many points during the process. With refillable bottles, it happens they are first brought into the plant. They are also inspected after they are washed and again after they are filled. Inspectors look for external bottle imperfections and make sure each bottle has the right amount of beverages. Even after filling, each plant samples bottles for analysis in its lab to ensure quality is up to standards.

9. PACKAGING

Once our filled beverages have passed final inspection, they are ready to be packaged for delivery. Generally, packing can refer to everything from the unique BOTTLE & CAN designs, to cardboard boxes and containers, to plastic rings. Because the needs and tastes of our consumers are so diverse, the packaging varies depending on where the beverages are being sent.

10. WAREHOUSING & DELIVERY

In order to make sure the freshest beverages possible get to you, each warehouse must efficiently manage the thousands of beverages cases produced each day. Beverage organization is key, though it's the bottle and can coding that allow for the necessary precision. From the warehouse, we load beverages onto our distinctive trucks. Night and day, our trucks are delivering our refreshing beverages to stores, soda fountains, and vending machines near you.

Different Brands in coca-cola

The world's favorites drink. The world's most valuable brand. The most recognizable word across the world after OK.Coca-Cola has a truly remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic beverages in the world. In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation.

Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had entered the youth's vocabulary. In 2002, Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it India's favorites soft-drink brand. In 2003, Coke was available for just Rs. 5 across the country and this pricing initiative together with improved distribution ensured that all brands in the portfolio grew leap sand bounds. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past and today, its brand ambassadors are Aamir Khan and Hrithik Roshan.

Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993.

Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst. Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends.

Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit juices and was available throughout the year.In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the fruit drink category. Over the years, brand Maaza has become synonymous with Mango. This has been the result of such successful campaigns like "Taaza Mango, Maaza Mango" and "Botal mein Aam, Maaza hain Naam". Consumers regard Maaza as wholesome, natural, fun drink which delivers the real experience of fruit. The current advertising of Maaza positions it as an enabler of fun friendship moments between moms and kids as moms trust the brand and the kids love its taste. The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza"

Lime n' lemoni Limca, the drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country. The success formula? The sharp fizz and lemoni bite combined with the single minded positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca and walk away a new person.

Strong Cola Taste, Exciting Personality

Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.

World wide Sprite is ranked as the No.4 soft drink & is sold in more than 190 countries. In India, Sprite was launched in year1999 & today it has grown to be one of the fastest growing soft drinks, leading the Clear lime category.

In the company's journey towards the vision 'leading the beverage revolution in India', now even Garam matlab Coca-Cola. A hot new launch from Coca-Cola India.Georgia, quality tea and coffee served from state of the art vending machines is positioned to tap into the nations biggest beverage category.

Georgia, which promises a great tasting, consistent, hygienic and affordable cuppa is available in a range of sizzling flavours, adrak, elaichi, masala and plain tea cappuccino, ochaccino and regular coffee.

Georgia is currently in the roll out stage after a successful launch in Delhi & Kolkata. Georgia aims to become the consumers preferred choice of hot beverage when he is on the go; the brand is well on course to achieving its vision.

While Georgia is a mass market offering, Georgia Gold is the premium brand which caters to the connoisseur. Made from freshly roasted and ground coffee beans, Georgia Gold is delicious tasting aroma with the tantalizing aroma of fresh coffee. Currently available exclusively at McDonalds outlets across the country Georgia Gold has driven coffee sales

Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself. The importance of water can never be understated. Particularly in a nation such as India where water governs the lives of the millions, be it as part of everyday rituals or as the monsoon which gives life to the sub-continent.

Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure.

Kinley water comes with the assurance of safety from the Coca-Cola Company. That is why we introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our product. That's why we go through rigorous testing procedures at each and every location where Kinley is produced.

Because we believe that right to pure, safe drinking water is fundamental. A universal need that cannot be left to chance.

Minute Maid - A 62 year success story

The history of the Minute Maid brand goes as far back as 1945 when the Florida Foods Corporation developed orange juice powder. The company developed a process that eliminated 80 percent of the water in orange juice, forming a frozen concentrates that when reconstituted created orange juice. They branded it Minute Maid, a name connoting the convenience and the ease of preparation (In a minute). Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate.

Minute Maid- One of the world's largest juice and juice drink brands

Over the years, through innovations and unmatched consumer experience provided in over 60 countries, Minute Maid brand has clearly become one of the world's largest juice and juice drink brands.

Marketing Channels

A marketing channel performs the function of moving goods and products to consumers. It overcomes the major time, place, and possession gaps that separate goods and services from those who would use them. A marketing channel covers the following functions.

1. Research gathering of information necessary for planning and facilitating exchange.

2. Promotion development and dissemination of persuasive communications about and offer.

3. Contact searching out and communicating with prospective buyers.

4. Matching shaping and fitting the offer to the buyers requirements (grading assembling, packing etc.)

5. Negotiation the attempt to reach the final agreement on price and other terms of the offer so that transfer of ownership or possession can be affected.

6. Physical distribution transporting and storing of goods.

7. Financing acquisition and dispersal of funds to cover the costs of the channel work.

8. Risk taking assumption of risks in connection with carrying out the channel work.

A Distribution channel is a set of firms and individuals that take title, or assist in transferring title, to the particular good or service as it moves from the producer to the consumer.

In a distribution channel the role of intermediaries is to transform the assortment of products made by producers into the assortment wanted by consumers. Thus intermediaries play an important role in matching supply and demand.

Distribution Strategies

Marketing channels are set of interdependent organization involved in the process of making a product or service available for use. There are basically four consumer marketing channels. They are:

1. Zero level channel

2. One level channel

3. Two level channel

4. Three level channel

There are basically two kinds of strategies adopted by organization to distribute their product.

1. Push Strategy: under this method the producer pushes the stock in the market. This can be achieved through various promotional methods. The agents are given incentives to increase the volumes of sales through aggressive selling.

2. The Pull Strategy: under this strategy the demand for the product by the consumer is created. The consumer feels the need to buy the product. This is done through advertisement and other consumer schemes.

Ruchi uses both techniques to enhance its sales

This technique of push and pull have been extremely successful in the company which has boosted its sales.

Eg. There was a particular scheme where the retailers were required to maintain the Ruchi product display racks, place them attractively and stock it only with their products. This was a display rack contest where the retailer who maintained it best was given discount and other prizes. This was a promotional technique, which also helped to push the product into the market thus magnifying the sales.

Inside Orissa Marketing:

As the COCA-COLA products are very old for Orissa and it is a company that is situate-d at Orissa, marketing is very each for this area. Generally they adopt two level channel marketing. The products go to the distributors and from the distributor to the retailer.

Distributors

Retailers

COCA-COLAS CHANNEL OF MARKETING IN OUTSIDE OF ORISSA:Outside Orissa marketing of COCA-COLA product adopt different channel marketing system. They generally appoint the super stockiest in outside Orissa market. Then the super stockiest appoints the distributors in different areas and controls them. Then the distributor distributes the goods among the retailers.Super stockiest Distributors Retailers

Distribution Channel at Hindustan Coca Cola

Marketing and distribution channels can be characterized by the number of channel levels. Each middleman that performs some work in bringing the product and its ownership closer to the final buyer constitutes a channel level. Since the producer and the consumer both perform some work they are a part of every channel. The number of intermediary levels determines the actual length of any channel.

Direct distribution channel: In this type of distribution the producer sells the products directly to the consumers. This type of system is commonly found in the case of cosmetics like Avon where the salesman does door- to- door service.

Indirect distribution channel: In this type of channel there are one or more intermediaries operating in order to reach the product to the final consumer. All FMCGs operate through the indirect marketing channel.

Coca-Cola, which is an FMCG also, uses the indirect method of distribution. The following shows the distribution system used by the company:

Unlike most FMCGs the soft drinks industry has a relatively smaller channel of distribution. In the above diagram we can see that at Hindustan Coca- Cola there are basically two intermediary levels operating before the goods reach the final consumer. This procedure is basically followed in Bhubaneswar and other cities.

As soft drink is an item, which is consumed by all types of, consumers it should be made available at all kind of retail outlets. The retail outlets can be further classified as follows:

Channel of trade:

1) Grocery

2) Eat & Drink

3) Convenience Key Accounts: these are certain high profile retail outlets, which have major status attraction but deliver relatively lower volumes. For e.g. the various discotechques, theatres and other entertainment centers, large shopping malls like Big Bazaar etc. McDonalds is another example but it generates very large volumes and is one of the largest and most precious customers for Coca-Cola.

How should goods be flipped (Transportation).Transportation plays a very important role, because Coke being a fast moving good is in high demand & also there is a 2 way movement of the goods, filled bottles from Coke to customers & return of empty bottles from customers to Coke.

Coke follows the Motor Carriers mode. Some of these Trucks are owned by Coke and some hired. Most of these trucks have a special design, which facilitates easy handling and storage of the crates. From the distributor there are specific auto rickshaws which carry the products to the retail outlets.

For e.g. a auto rickshaw covers specific routes daily

Each auto is accompanies by a sales man & a couple of helpers. The auto carries these crates and gives it to the various retailers and restaurants. There is a deposit charged on each crate. Once the agent gives the customer the required number of crates he gives him the bill and in return asks for empty bottles. The helpers sort the empty bottles and arrange all Coke products in one crate.

Over the years Coke has been operating through franchisees (franchisee owned bottling operation FOBO). Only recently it is trying to take over the bottling plants formerly owned by independent bottlers. It wants to set up an integrated bottling system in India. This is being vigorously opposed by the independent bottlers who would have to sell 51 per cent of their equity to Coke and participate in a joint venture. Coca-Cola was offering $ 5 per crate to bottlers to buy them out. Bottlers allege that the company offered a much higher price of $ 13 per crate to bottlers in Pakistan.

Unlike Pepsi, which has taken the more capital-intensive route of owning and running its own bottling factories alongside those of its franchisees, Coke operates only through FOBO. Coke supplies its soft drink concentrate (the secret potion) to its bottlers around the globe. To reduce loading time and enable faster disbursement of crates, Coke has introduced special A-frame (the inside of the truck has a structure resembling the alphabet A and the crates are stacked against it). The trucks also give the company permanent hoarding space on their sides and backs.

THE FINISHED GOODS FLOW

Physical Distribution in Bhubaneswar

The Coca-Cola manufacturing plant is situated at Khurda. There are distributor centers or depots located at Bhubaneswar. These depots handle various predetermined routes and reach out to the various retail outlets. 1 particular auto rickshaw is assigned for every route. So in this way there are many rickshaw covering different routs of BBSR. Thus these distributors try to cover the entire city.

Details of the auto rickshaw:

Some of the autos are distributor owned while the others are hired.

Bottles are deposited on each crate.

1 crate can contain 24 bottles of 300 mls.

The filled stock moves from the plant to the distributor (warehouse) at regular intervals.

The auto leave with filled stock from the distributors depot early in the morning. They follow the route list assigned for the day. Every auto makes approximately 2 visits in a day.

The route agents go to each outlet on the route and make the sales and take spot payment. They also collect empties from each outlet.

The retailers then sell the product to the final consumer. The promotional items are also passed on to the retailers from time to time.

The order for each day is anticipated.

In the evening the empty stock are sent back to the plant.

The route salesmen do the cash accounting immediately and hand it over to the distributor.

This cycle operates on a daily basis.

Distribution flow

The distribution flow at Hindustan Coca-Cola can be classified into the following:

Physical flow

Title flow

Payment flow

Information flow

Promotion flow

1. Physical flow: this describes the actual flow of physical stock of the company right from the manufacturers to the final consumers.

The manufacturing plant of Hindustan Coca-Cola is the bottlers. They bottle the syrup and the soda and do the labeling, branding etc.

The goods then move out from the manufacturing plant to the various depots or warehouses, which are also the distribution centers. These distribution centers have salaried agents called the route agents who act as the salesmen of the company.

These route agents then go in the delivery vehicle into the market and sell the stock to the retailers.

The retailers finally sell the product to the end consumer on demand.

The empty bottles stacked by the retailers are returned to the agents who in turn send them back to the manufacturer.

It is thus a circular flow of where the filled stock moves out of the company and the empty stock is returned.

This system operates a little different from the conventional FMCGs where the stock requisites are made in advance. In this case the demand is on a day-today basis.

2. Title Flow: this describes the passage of ownership from one channel member to another.

In this case the title of ownership passes in the same way as the movement of the goods. The title of ownership first belongs to the manufacturers. It then moves on to route agents who carry the stock.

When the retailers purchase the stock from the route agents, the tile of ownership for the purchased stock then passes product he becomes the owner of the product.

3. Information Flow: this shows how channel organizations exchange information. At Coca-Cola the information passes from one level to the other in an ascending order.

The company passes on information regarding the stock, various strategies to be undertaken etc. to the distributors.

The distributors in turn pass on information regarding various customer and consumer schemes, and other requirements.

The retailer finally informs the consumer of the various changes taking place or the benefits the consumer can derive.

Sometimes the information also passes on from the company directly to the consumers in the form of advertisements.

4. Promotion flow: this describes the directed flows of influence (advertising, personal selling, sales promotions, and publicity) from one party to another.

In this case the company may either adopt direct method of advertisements to educate the consumers of the various products styles and trends in the market.

Another promotional flow takes place from the manufacturer to the route agents who emphasize on the merchandising and scheme implementation to the various retailers. These retailers then do the required promotion of the product in terms of posters, banners, paintings, and other POPs. They also pass on the consumer schemes, which attract the end consumer.

Identifying Major Alternatives

The company has had to identify the major channel alternatives based on the following factors: -

1. The types of business intermediaries: Whether it requires a sales force from the company itself, or separate distributors, how they should categorize the retailers etc

2. The number of business intermediaries: It has to decide the number of channel members. Since soft drinks are products, which have daily demand and are sold at almost all retail outlets they, needed to adopt intensive distribution?

Evaluating major Channel objectives

Based on the types and number of intermediaries and the terms and responsibilities of the channel members the company has major channel alternatives. It then evaluates each alternative on the basis of the following:

1. Economic criteria: The Company decides which channel is most economic and cost effective. Which channel will help it to achieve the desired objective? Coca-Cola believes that investing heavily in channel management is acceptable as long as it yields the desired returns.

2. Control criteria: The Company has to decide on the control factor while deciding upon any particular channel. There are various issues related to control that the company may face.

Damages: Coca-Cola tries to make sure that the distributors are efficient in handling the product. It often happens that due to inadequate and careless handling of the product and other company possessions there are heavy losses incurred by the firm. In this respect the company prefers to have reduced handling of the stocks.

Control over distribution: Coca-Cola has to monitor if the distribution is taking place through the right channel members and the stock is actually moving fast.

Control over promotion: The Company makes sure that the retail channels are actually doing the necessary merchandising for the company as they get various incentives to do it. The points of purchases and other schemes have to reach out to the consumers.

Cost Analysis

The percentage of the cost of the entire logistical operation in coke is around 30% of the manufacturing cost.

The break up is as follows:

1. Raw materials

60%

2. Transport

5%

3. Inventory

10%

(Increases in seasons as mentioned before around 15%)

4. Labeling

4%

5. Bottling

5%

6. Warehousing

10%

7. Inspection

4%

8. Wastage & breakage

2%.

Cost control and distribution efficiency

Customer visibility arrives as one of the direct co-relations to brand mobility. Ensuring this crucial customer visibility implies executing a timely product delivery at the doorstep of the consumer. The soft drinks major Coco-Cola India Pvt. Limited has initiated a string of cost- conscious action plans. They incorporate advanced planning of stock dispatches, cost optimization right from the production backrooms to the front-end retail shelves and instituting efficient performance mechanisms for a smoother, speedier and unhindered movement of SKUs. All these systems and initiatives rolled into a single actionable unit would hence indicate that the corporate has solved the logistics maze.

RESEARCH METHODOLOGY A brief survey was conducted in certain areas of Bhubaneswar to study the functioning of Coca Cola and observing the availability of the product. It covered areas like Bapuji Nagar, Cuttack Puri road, Ashok Nagar, Satya Nagar, Master Canteen, Sriaya Stutee theater areas, Kesari hall etc.

MARKETING RESEARCH

DEFINATION: It is defined as the systematic design, collection, and analysis and reporting of data and findings to a specific marketing situation facing the company.

RESEARCH OBJECTIVES:

To enhance the distribution system by: -

Analysing the distribution system to identify the weak areas and gaps. Making a comparative study of availability of Coca-Cola and its competitors products.

Suggesting strategies for making improvements in the availability, thereby increasing sales.

Strategy to convert the shared outlets to Coco-cola monopoly outlets.research PLAN:

data SOURCES:

Primary data The data was collected from different retail outlet of Bhubaneswar. research APPROACHES: The survey was done on 45 shared retail outlets in areas of Bapuji Nagar & Cuttack Road to find the interests of retailer to convert into monopoly outlets & approximately 40 retail outlets in other part of BBSR to know their preference, distribution gap and satisfaction. research design : Quantitative

research instruments

QUESTIONNAIRE: A questionnaire consists of a set of questions presented to the retailer, because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. The questionnaire used for the survey had both the open ended as well as close ended questions. sampling plan :

1. Sampling Unit: All the retailers selling Coco-cola & Pepsi beverages.2. Sample Size : 40 Retail outlets to know the distribution gap & 45 retail out let to know the distribution gap and convert the shared retail outlet to monopoly outlet in different parts of Bhubaneswar . CONTACT METHOD:

personal interview: The retailers were asked to fill the questionnaire only after a depth interview. Their views were well understood and noted down.

Analysis & Findings of the 45 surveyed retail outlets of BapujiNagar

A number of prominent features were observed with regard to display merchandising, attitude of the agents etc that are enumerated below. Also a few recommendations are given in these aspects.

Observations

1. Attitude

In relation to competition, the attitude of the route agents of the Coca-Cola company seemed very laid-back. Some of these predetermined route are old thus they have not been able to adapt to the changing market scenario, resulting in loss of sales.

2. Scheme implementationDuring the course of the survey we noticed that many customers were, either unaware of the several schemes introduced by the company such as two RGB free with buying of one karate of Limca scheme were not provided to the customer on time causing hesitation amongst the customer to keep RGB . Some schemes meant for the consumers are also not communicated properly to the retailers.

3. Cooler ServiceDhakhina kali agency

Many customers expressed dissatisfaction about the services of the company coolers. The servicing was rated as inefficient and always delayed.

4. MerchandisingWhile conducting the survey it was observed that there was extensive abuse of Coca-Cola coolers and display racks.

CONCLUSION

A multinational giant like Coca Cola is looking to continuously expand its operation in India where it sees tremendous growth opportunities. With the launch of Kinley in the branded water segment, the company is leaving no stone unturned to increase its market share. Coke has also decided to venture into e-commerce trying to link its 31 factories with its 150 warehouses and 6000 distribution centers all over the country, cost reduction being the main motive. This goes to prove its magnitude and investment capability.

As we have observed, the take over of the Parle brands has immensely helped Coke to establish itself in the Indian Market ever since its come back in 1993. Coca Colas superior brand image coupled with dense distribution network that Parle already had, has helped it to create a wave in the soft drink market like no other.

To conclude, this report has tried to analyze the distribution operations and understand what are the key factors that have spelt magic for Coca Cola in India and the world over.

QUESTIONNAIREiii. Which Brand is selling more? i) coke ii) Pepsi iii) Fanta

2. Which company gives more no of schemes round the year?

i) Coca-cola ii) Pepsi

3. Is Coca-cola a good corporate citizen? How does it support local communities?

4. What is your policy on ethics?

5. Can soft drink be part of a healthy diet?

6. Should I be concerned about the amount of sugar and calories in soft drinks?

7. Does sugar make children hyperactive?

8. Are soft drink bad for my teeth?

9. Do soft drink have a lot of caffeine?

10. Is caffeine safe?

11. Is there a connection between soft drinks and bones?

BIBLIOGRAPHY

1.Marketing Management by Philip Kotler

2. Research Methodology by C. R. Kothari

3. Marketing Management by Rajan Saxena

4. Product Management by Ramanuj Majumdar

5. Market Research Journal

6. Coca-Cola profile

7. Annual Report of Coca-cola

8. www.coca-colaindia.com

Distributors

Manufacturer

Retailers

Consumer

Manufacturer

Distributors

Retailers

Consumer

Manufacturer

Consumer

Manufacturer

Distributors

Retailers

Consumer

Customers

Customers

Customers

Coke

Distributor

REFILLING

EMPTY

BOTTLES

PLANT

KHURANT

RGB, Cans & PET

Various Routes through Trucks

Manufacturer

(Distributors)

Retailers

Consumer

Advertiser

Manufacturer

Distributors

Retailers

Consumer

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