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HINDUSTAN COCA-COLA
BEVERAGES PRIVATE LIMITED
AN INTERNSHIP REPORT ON
“ANALYSIS OF RETAILER’S BEHAVIOUR TOWARDS COCO-COLA PRODUCT”
SUBMITED TOWARDS PARTIAL FULFILMENT OF
POST GRADUATE DIPLOMA IN MANAGEMENT(RETAIL & MARKETING)
SUBMITTED BY-GAURAB KUMAR
PGDM-R&M (2011-13)ENROLMENT NO-1102010
FACULTY GUIDEMR. P. MAHESHASST PROFESSOR
INSTITUE OF PUBLIC ENTERPRISEHYDERABAD
INDUSTRY GUIDEMR. RITESH JHA
SALES &DISTRIBUTIONHINDUSTAN COCOCOLA
BEVERAGES PVT LIMITED
ACKNOWLEDGEMENT
I would like to thank Dr. P.NARESH KUMAR zonal head-human resources (AP) &
D.HARIKA SREE (HR), Coca-Cola India, without whom an internship with,
Hindustan Coca-Cola Beverages Private Limited (HCCBPL) would not have been
possible. I am grateful to him for having taken time off his busy schedule and spoken
to the concerned person to get me this internship. I express my gratitude to the
Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for having given me an
opportunity to work with them and make the best out of my internship. I thank my
trainers, Mr. shankar and Mr. ritesh jha for having trained me and constantly guided
and supported me throughout the training period. My heartfelt gratitude also goes out
to the staff and employees at HCCBPL for having co-operated with me and guided
me throughout the one and a half months of my internship period. I thank my school,
institute of public enterprise Academy of Management Studies for having given me
this opportunity to put to practice, the theoretical knowledge that I imparted from the
program. I thank course coordinators; Dr.v.srikanth and internship guide Mr.
P.mahesh for having guided and supported me through the course of the internship.
I take this opportunity to thank my parents and friends who have been with me and
offered emotional strength and moral support.
1. EXECUTIVE SUMMARY
oca-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.
Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, 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. 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.
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than
reveals its formula to the Government and reduces its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in
India. 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. The main objective of this study lies in understanding the organization
and studying and understanding the retailer’s perception and opinion about the Coca-Cola
Company. An outlets sampling involving 125 retail outlet owners was conducted in a span of
48 days across Hyderabad. To study the behavior of retailers towards coca cola company and
their requirements from company and analyze the reasons for willingness to sell Coca-Cola
product brands .To find the reasons for losing the market shares in Hyderabad, Study the
distribution network of Coco cola and retailer satisfaction level.
C
The methodology used in studying and understanding the perceived views of retailer’s
towards the Coca-Cola Company was ‘SAMPLING’. The findings of the activity have been
drawn out inform of graphs and suggestions have been offered there from.
TABLE OF CONTENT
CONTENTS
CHAPTER -I INTRODUCTION...............................................................................................1
1.1 INTRODUCTION TO COLD DRINK SECTOR...........................................................2
1.2 NEED FOR STUDY........................................................................................................2
1.3 OBJECTIVES OF THE STUDY.....................................................................................3
1.4 METHODOLOGY...........................................................................................................3
1.5LIMITATIONS OF THE STUDY....................................................................................4
CHAPTER -II INDUSTRY PROFILE......................................................................................5
2.1 INTRODUCTION TO FMCG.........................................................................................6
2.2OVERVIEW – INDIAN FMCG SECTOR.......................................................................6
2.3 MAJOR SEGMENTS IN INDIAN FMCG SECTORS...................................................7
2.4TOP 10 FMCG COMPANIES IN INDIA........................................................................9
2.5 BEVERAGE AND SOFT DRINK INDUSTRY...........................................................11
2.6 MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY.......................................13
2.7 HIGHLIGHTS OF BEVERAGE AND SOFT DRINK INDUSTRY............................13
2.8 THE FUTURE OF BEVERAGE AND SOFT DRINK INDUSTRY............................15
2.9 SWOT ANALYSIS OF BEVERAGE AND SOFT DRINK INDUSTRY....................16
2.10 INDUSTRIAL LIFE CYCLE......................................................................................17
2.11 GOVERNMENT POLICIES.......................................................................................18
2.12 INNOVATIONS AND TRENDS IN THE BEVERAGE INDUSTRY......................19
CHAPTER –III COMPANY PROFILE..................................................................................21
THE COCA-COLA COMPANY.........................................................................................22
3.1 HISTORY......................................................................................................................22
3.2 HISTORY OF BOTTLING...........................................................................................24
3.3 MANIFESTO FOR GROWTH......................................................................................26
3.4 HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL).........27
3.5 PRODUCTS...................................................................................................................30
3.6 MISSION.......................................................................................................................32
3.7 VISION..........................................................................................................................32
3.8 FACTORS OF SUCCESS.............................................................................................34
3.9 MILESTONES ACHIEVED.........................................................................................35
3.10 FUTURE PLANS.........................................................................................................35
3.11 SWOT ANALYSIS......................................................................................................36
CHAPTER-IV THEORETICAL FRAMEWORK OF THE STUDY.....................................40
4.1 MARKETING................................................................................................................41
4.2 MARKETING MIX.......................................................................................................41
4.3 DEVELOPING RESARCH PLAN................................................................................43
4.4 DISTRIBUTION CHANNEL IN HYDERABAD........................................................47
CHAPTER -V ANALYSIS...................................................................................................50
5.1.1 COMPANY’S STOCK...........................................................................................51
5.1.2 RETAILER’S WILLINGNESS TO SELL COCA-COLA................................52
5.1.3 VISI COOLERS IN STORES.....................................................................53
5.1.4 COCA-COLA VISI COOLER REQUIREMENT..............................................54
5.1.5 SOLD COCA-COLA PRODUCT EARLIER.....................................................55
5.1.6 COCA-COLA SERVICE.......................................................................................56
5.1.7 DAILY SALES........................................................................................................57
5.1.8 REASONS FOR BEING A COCA-COLA RETAILER...................................58
5.2 BCG-MATRIX FOR THE PRODUCT LINE OF COCA-COLA.................................59
5.3 PORTER’S 5 FORCES MODEL...................................................................................61
5.4 SALES PROJECTION...................................................................................................63
5.5 TREND ANALYSIS......................................................................................................66
5.6 PRODUCT PROFILE OF COCA-COLA.....................................................................68
5.7 Product Line of Indigenous Competitor PEPSICO........................................................70
5.8 MAJOR COMPITATORS IN INDIAN BEVERAGE INDUSTRY.............................71
Beverages-........................................................................Error! Bookmark not defined.
CHAPTER – VI.......................................................................................................................75
6.1 SUMMARY...................................................................................................................76
6.2 SUGGESTIONS............................................................................................................77
6:3 CONCLUSION..............................................................................................................77
LIST OF CHARTS
CHART 1: MARKET SHARE..................................................................................................9CHART 2: MARKET SHARE OF FMCG COMPANIES IN INDIA....................................10CHART 3:MARKET SHARE OF TOP BEVERAGE INDUSTRY IN INDIA.....................13CHART 4: COCA-COLA OPERATING AREA MARKET SHARES..................................23CHART 5: COMPANY STOCK AT RETAILER’S LEVEL.................................................51CHART 6: NO OF RETAILER’S WILLINGNESS TO SALE COCA-COLA PRODUCTS52CHART 7: VISI COOLER AVABILITY IN STORES..........................................................53CHART 8: COCA-COLA VISI COOLERS REQUIREMENTS............................................54CHART 9:COCA-COLA PRODUCT SOLD EARLIER........................................................55CHART 10: COCA-COLA SERVICE....................................................................................56CHART 11: COLD DRINK SALE OF OUTLETS.................................................................57CHART 12: REASON FOR NOT SELLING COCA-COLA COMPANY PRODUCTS......58CHART 13: COCA-COLA REVENUE IN BILLION $.........................................................64CHART 14: UNIT CASE VOLUME IN BILLION................................................................65CHART 15: TREND ANALYSIS...........................................................................................67
LIST OF FIGURES
FIGURE 1:BEVERAGE INDUSTRY CLASSIFICATION...................................................11FIGURE 2: PRODUCT LIFE CYCLE....................................................................................17Figure 3:PRODUCT LIFE CYCLE OF BEVERAGE INDUSTRY.......................................18FIGURE 4: COCA-COLA BOTTLING PLANTS IN INDIA................................................29FIGURE 5: COCA-COLA PRODUCT LINES.......................................................................32FIGURE 6: SUSTAINABLE GROWTH................................................................................33FIGURE 7: MARKET RESEARCH CLASSIFICATION......................................................46FIGURE 8: COCA-COLA DISTRIBUTION CHANELS......................................................48FIGURE 9: BCG MATRIX.....................................................................................................59Figure 10: COCA-COLA BCG MATRIX...............................................................................61
LIST OF TABLES
TABLE 1: TOP 10 FMCG COMPANIES IN INDIA.............................................................10
CHAPTER -I
INTRODUCTION
1.1 INTRODUCTION TO COLD DRINK SECTOR
he Rs 50 billion soft drink industries are growing now at 6 to 7% annually. In India
Coca-Cola product and Pepsi have a combined market share of around 95% directly
or through franchisees Campa cola has a 1% share and the rest is divided among
local players. Industry watchers say, fake products also account for a good share of the
balance. There are about 110 soft drink producing units (60% being owned by Indian
bottlers) in the country, employing about 125000 people. Beverage industry is one of the
fast growing industries in India .it can be divided into two sections i.e. carbonated and non-
carbonated. the carbonated drinks that can be further classified into cola, lemon orange,
mango and apple segments. Marketing includes all the activities like promotion,
distribution, advertising etc. To fulfill all the segments of consumers. Marketing is also to
convert social needs into profitable opportunities. So this topic provides all the essentials to
theoretical knowledge with practical knowledge and to inculcate the efficiency. It is also
requirement for the company to improve their service and product quality for achieving their
ultimate goal.
T
As far as the soft drink market is concerned, it is facing the cut throat competition
because of the availability of a large number of indirect as well as direct competitors.
Single company offers the soft drink to the market in different taste and flavors. In this
industry entire range of flavors are produced by other competitors also. More often it
becomes impossible to differentiate between the same flavors of two different brands,
when served in plane container, range also. All these factors together make the situation
complicated. Besides both corresponding brands have the similar price.
1.2 NEED FOR STUDY
To find the details of outlets which are either not selling Coca-Cola product or
selling the products in very less quantity. This project was aimed at finding
out the outlets, which were not promoting Coca-Cola product and selling
competitor brands. To study the behavior of retailers towards coca cola products and
their requirements from company and analyze the reasons for willingness to
sell Coca-Cola product brands. To find the reasons for decrease in the market share of
Coca-cola.
1.3 OBJECTIVES OF THE STUDY
The study has been conducted with the fo l l owing objectives
1- To Study the distribution network of Coco cola and retailer satisfaction level.
2- Analyze the reasons for low sales of Coca-Cola product at retailer’s point.
3- To find the potential stores for Coca-Cola products.
4- To find the reasons for losing the market shares in Hyderabad.
1.4 METHODOLOGY
The project is prepared on the basis of primary and secondary data pertaining to Coca-Cola.
Primary data includes collecting data through a survey specifications, promotional activities
are obtained from the broachers and other records maintained by the company.
Sources of Data
The data which has been collected for this research is taken from the market in the form of
primary and secondary data.
Secondary data
For the secondary data various websites have been of help for collecting necessary
information regarding products of Coca-Cola.
Primary data
Data is collected specially for the study currently undertaken. For this study a questionnaire
was generated and the respondents were interviewed personally. Personal interview is the
method in which the related /concerned people are directly interacted and interviewed.
Questionnaire
A set of 8 questions were designed in order to complete the study. This questionnaire
includes closed ended questions.
Sample
To fulfill the objectives of the study the data is collected from 125 outlets who is selling soft
drinks from different areas of Hyderabad.
1.5LIMITATIONS OF THE STUDY
The following limitations were faced while conducting the study:
The study is limited to selected areas of Hyderabad.
Time and financial limitations hindered more respondents from being selected.
The information given by the outlet owners may be false and biased.
Lack of retailer’s interest to answer the questions.
It was very difficult to make outlets owners understand the significance of
conducting survey.
CHAPTER -II INDUSTRY PROFILE
2.1 INTRODUCTION TO FMCG
roducts which have a quick turnover, and relatively low cost are known as Fast
Moving Consumer Goods (FMCG). FMCG products are those that get replaced
within a year.PExamples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products,
and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged
food products, soft drinks, tissue paper, and chocolate bars. India’s FMCG sector is the
fourth largest sector in the economy and creates employment for more than three million
people in downstream activities.
Its principal constituents are Household Care, Personal Care and Food & Beverages. The
total FMCG market is in excess of Rs. 85,000 Crores. It is currently growing at double digit
growth rate and is expected to maintain a high growth rate.
2.2OVERVIEW – INDIAN FMCG SECTOR
FMCG Industry is expected to have a market of 40,000 crore by 2020 (Booz Allen
Report).
Fourth largest sector in the economy with a total market size in excess of US$ 13.1
billion.
Strong MNC presence and is characterized by a well-established distribution network,
intense competition between the organized and unorganized segments and low
operational cost.
Availability of key raw materials, cheaper labor costs and presence across the entire
value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion
in 2015.
Penetration level as well as per capita consumption in most product categories like
jams, toothpaste, skin care, hair wash etc. in India is low indicating the untapped
market potential.
Burgeoning Indian population, particularly the middle class and the rural segments,
presents an opportunity to makers of branded products to convert consumers to
branded products.
Growth is also likely to come from consumer 'upgrading' in the matured product
categories.
With 200 million people expected to shift to processed and packaged food by 2010,
India needs around US$ 28 billion of investment in the food-processing industries.
2.3 MAJOR SEGMENTS IN INDIAN FMCG SECTORS
Household Care
The detergents segment is growing at an annual growth rate of 10 to 11 per cent during the
past five years. The preference is given to detergents in urban area compared to bars.
Household care segment is featured by intense competition and high level of penetration.
With rapid urbanization, emergence of small pack size and sachets, the demand for the
household care products is booming. In washing powder segment, HUL is the leader with
approx. 38 per cent of market share. Other major players are Nirma, Henkel and Proctor &
Gamble.
Personal Care
Personal care segment includes personal wash products, hair care products, oral care
products, cosmetics etc. The Indian skin care and cosmetics market is valued at $274 million
and is dominated by HUL, Colgate Palmolive, Gillette India and Godrej. The hair care
market can be segmented into hair oils, shampoos, hair colorants & conditioners, and hair
gels. In the branded coconut hair oil market, Marico (with Parachute) and Dabur are the
leading players. Sachet makes up to 40 per cent of the total shampoo sale. Again the market
is dominated by HUL with around 47 per cent market share; P&G occupies second position
with market share of around 23 per cent. Swelling disposable incomes of the Indian
consumers, growth in rural demand and upgrading to the premium products are the key
drivers for future demand growth in major FMCG categories.
The skin care market is at a primary stage in India. With the change in life styles, increase in
disposable incomes, greater product choice and availability, people are becoming more alert
about personal grooming. The major players in this segment are Hindustan Unilever with a
market share of 54 per cent, followed by Calvin & Kare and Godrej with a market share of 3
per cent. The oral care market can be segmented into toothpaste, toothpowder, and
toothbrushes. This segment is dominated by Colgate-Palmolive followed by HUL. In
toothpowders market, Colgate and Dabur are the major players.
Food and Beverages
This segment comprises of the food processing industry, health beverage industry, bread and
biscuits, chocolates & confectionery, Mineral Water and ice creams. The three largest
consumed categories of packaged foods are packed tea, biscuits and soft drinks. Indian hot
beverage market is a tea dominant market. The major share of tea market is dominated by
unorganized players. Leading branded tea players are HUL and Tata Tea. Major players in
food segment are HUL, ITC, Godrej, Nestle and Amul.
Sectoral Opportunities
There are some under penetrated segments which need to be tapped by companies.
Dairy Based Products:
India is the largest milk producer in the world, yet only around 15 per cent of the milk is
processed. The organized liquid milk business is in its infancy and also has large long-term
growth potential. Even investment opportunities exist in value-added products like desserts,
puddings etc.
Packaged Food:
Only about 10-12 per cent of output is processed and consumed in packaged form, thus
highlighting the huge potential for expansion of this industry.
Oral Care:
The oral care industry, especially toothpastes, remains under penetrated in India with
penetration rates around 50%. With rise in per capita incomes and awareness of oral hygiene,
the growth potential is huge. Lower price and smaller packs are also likely to drive potential
up trading.
Beverages:
Indian tea market is dominated by unorganized players. More than 50% of the market share is
capture by unorganized players highlighting high potential for organized players.
India has more than 17% of the world’s population and that half of these people are below the
age of 25. With a median age of 25 years, increasing numbers are joining the Indian
workforce. India’s share in world consumer spending is set to enlarge from 1.9% in 2005 to
3.1% in 2020.
The Indian FMCG industry is estimated to be over 1, 30,000 crores in size and accounts for
2.2% of the GDP of the country. The industry has tripled in size over the last 10 years and
has grown at approximately 17% CAGR in the last 5 years, driven by robust macroeconomic
conditions, rising income levels, increasing urbanization and favorable demographic trends.
These drivers are expected to continue to favorably impact the industry which is estimated to
further triple in size in the next ten years to 4,00,000 crores by 2020 (Source: CII, FMCG
Roadmap to 2020).
TOP GLOBAL BEVERAGE COMPANY MARKET SHARES
CHART 1: MARKET SHARE
2.4TOP 10 FMCG COMPANIES IN INDIA
• Hindustan Unilever Ltd
• Indian Tobacco Company
• Nestle India
• GCMMF (Amul)
• Dabur India
• Asian Paints
• Cadbury India
• Britannia Industries
• Procter & Gamble Hygiene and Health Care
• Marico Industries
TABLE 1: TOP 10 FMCG COMPANIES IN INDIA
CHART 2: MARKET SHARE OF FMCG COMPANIES IN INDIA
2.5 BEVERAGE AND SOFT DRINK INDUSTRY
A beverage is a drink specifically prepared for human consumption. Beverages almost
always largely consist of water. Drinks often consumed include: Water
(both flat or carbonated),Juice based drinks, Soft drinks, Sports and
Energy drinks, Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy
products like milk. Commonly, drinks are filled into containers, like glass
or plastic bottles, steel or aluminum cans as well as cardboard supported
packages, like the "TetraPak" or others. Filling of beverages can be done cold, hot, ambient
and cold-aseptic filling to mention the latest trend of beverage marketing and technology.
FIGURE 1: BEVERAGE INDUSTRY CLASSIFICATION
The beverage is mainly categorized into two major categories based upon the alcoholic and
nonalcoholic nature of the drink. Non-Alcoholic beverages are further o two types based
upon carbon content. These beverages contain Fruit juices, Coffee, Tea, Soda, Colas. The
Alcoholic beverages are based upon the fruit content and grain. It may be Wine, Brandy,
Whisky or Beer.
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 exi
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.
2.6 MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY
1. Coca-Cola Company.
2. PepsiCo.
3. UB Group.
4. Dabur India Ltd.
5. TATA Global Beverages Ltd [TATA Tea].
6. Nestlé India.
7. Café Coffee Day.
8. Red Bull India Pvt Ltd.
9. Parle bislere ltd.
TABLE 1: TOP 10 FMCG COMPANIES IN INDIA.............................................................10TABLE 2: MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY...............................13
TABLE 2: MAJOR PLAYERS IN INDIAN BEVERAGE INDUSTRY
33.7
24.213.8
28.3
MARKET SHARE
COCA-COLAPEPSICOPARLE & BISLERE4th Qtr
CHART 3: MARKET SHARE OF TOP BEVERAGE INDUSTRY IN INDIA
2.7 HIGHLIGHTS OF BEVERAGE AND SOFT DRINK INDUSTRY
The Indian beverage market has observed strong growth over the past few years. Economic
liberalization and rising income of middle-class population have had a positive impact on
consumer spending and consumption in both rural and urban areas. Indian consumer now
spends a significant proportion of disposable income on food and other essential
commodities. Several other factors like demographic and macro economic conditions have
also given fillip to expenditure on food and beverages in the country.
The non-alcoholic drinks market has witnessed rapid growth over the past few years in India.
Increasing middle-class population, rapid urbanization and rising disposable income are some
of the major factors fuelling this growth. The industry is broadly classified into soft drinks
and hot beverages. The carbonated drinks market is close to Rs 6,000 crore and is growing by
10-12 per cent annually. The fruit-based beverage market stands at Rs 5,000 crore and is
growing at 35-40 per cent annually. The fruit-based beverage market is divided into three
segments - fruit drinks, nectar and 100 per cent juice. Coca-Cola, PepsiCo, Parle Agro Pvt.
Ltd, Dabur and Godrej are among the leading players in the domestic non-alcoholic beverage
circuit, highlights a certain study. Carbonated or aerated drinks account for about 30 per cent
of the total non-alcoholic beverages market in the country. The size of the segment is
currently estimated at about Rs 1,800 crore, while the value of the fruit drink segment is
estimated at about Rs 1,200 crore and the energy drinks market is worth about Rs 600 crore.
The functional drinks segment is dominated by energy drinks. The current market size of
energy drinks in India is around Rs 500 crore and it is expected to grow at a CAGR of 25 per
cent. Within the hot beverages category, India is the largest producer of tea with a total
turnover of around Rs 8,500 crore, growing at a rate of 1-2 per cent annually. India is the
world's fifth largest producer of coffee, accounting for 4 per cent of the world's production.
The fruit / vegetable juice segment is expected to grow at a CAGR of 30 per cent in value
terms, followed by the energy drinks segment at a CAGR of around 25 per cent in value
terms.
Non-alcoholicbeverages
Soft drinks constitute the third-largest packaged food segment in India after packaged tea and
packaged biscuits. But the penetration level of carbonated soft drinks in India is still low
compared with other developing markets, a sign that this market has potential for rapid
growth. The market size for bottled water in India had an estimated value of US$570 million
in 2008. With annual growth of 14.5 per cent, sales of bottled water are set to increase rapidly
over the next five years. The market for juice will also grow dramatically in coming years
With an annual growth rate of almost 15 per cent.
Milk
Unlike most other Asian countries, dairy products are a well-established part of the national
diet in India. With an annual output of more than 100 million tonnes, India is the largest milk
producer in the world. Currently, only 13 per cent of the milk is processed. The unorganized
sector distributes 85 per cent; however, the organized sector is growing rapidly. Demand for
packaged milk and milk products will increase because the growing middle-class, health-
conscious consumer segment - especially in towns and cities - is adopting Western lifestyles
and consequently buying more and more processed and packaged food. The availability of
fresh / pasteurized and long life / UHT milk is increasing nationwide.
2.8 THE FUTURE OF BEVERAGE AND SOFT DRINK INDUSTRY
Beverage Industry is projected to have overall growth between 8% -8.5 %.
Indian non-alcoholic drinks market is expected to at a CAGR of around 15% during
2010-2013.
India Alcoholic Drinks Market to Grow Over 9% CAGR during 2009-2013.
The India Alcoholic Drinks Market Is Expected To Reach The 3 Billion Liter Mark
By 2012.
The sectors which are projected to achieve excellent growth of 20% from wine.
Fruit/vegetable juice market will grow at a CAGR of around 30 per cent in value
terms during 2009-2012.
The energy drinks segment which will grow at a CAGR of around 29 per cent during
the same period.
All in all, annual per capita consumption of packaged beverages is supposed to triple
from 2.6 litres in 2000 to 8.7 litres in 2012. Demand for milk and milk-based
beverages are also rising.
The estimated INR 340 bn Indian liquor industry is expected to maintain its CAGR of
15%.
2.9 SWOT ANALYSIS OF BEVERAGE AND SOFT DRINK INDUSTRY
It is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities,
and Threats involved in the project. It involves specifying the objective of the project and
identifying the internal and external factors that are favorable and unfavorable to achieve that
objective.
STRENGTH
Renewal and investment
Innovation and Technological development
Experience in searching for new markets, niches and partners
Availability of key raw materials, cheaper labour costs and presence across the entire
value chain gives India a competitive advantage.
WEAKNESS
Old technologies and poor work organization
Insufficient pace of creation and implementation of innovations
Insufficiently effective activities of small and medium-sized businesses
Change in household consumption patterns
OPPORTUNITIES
Presence of a favorable market
Market globalization
Foreign direct investment promoting knowledge and developing export channels
Transfer of production to the countries with smaller labor costs
Well established distribution network
THREATS
Unfavorable market trends in energy resources
Increasing competition among exporters and decreasing dependency on one market
Intense competition between the organized and unorganized segments and low
operational cost.
Water scarcity in India
Increasing of Goods and Service tax in 2013-2014.
2.10 INDUSTRIAL LIFE CYCLE
To be able to market its product properly, a business must be aware of the product life
cycle of its product. The standard product life cycle tends to have five phases.
DEVELOPMENT
INTRODUCTION
GROWTH
MATURITY
DECLINE
In America carbonated soft drink market is currently in the maturity stage, which is
evidenced primarily by the fact that they have a large loyal group of stable customers but in
the developing countries like carbonated soft drinks are in growth stage, which is evidenced
by looking at the per head consumption of 6 bottles in India is lagging behind the us
astounding 700 bottles per head consumption.
FIGURE 2: PRODUCT LIFE CYCLE
FIGURE 3: PRODUCT LIFE CYCLE OF BEVERAGE INDUSTRY
2.11 GOVERNMENT POLICIES
Governmental Policy Indian Government has enacted policies aimed at attaining international
Competitiveness through lifting of the quantitative restrictions, reducing excise duties,
automatic foreign in-vestment and food laws resulting in an environment that fosters growth.
100 per cent ex-port oriented units can be set up by government approval and use of foreign
brand names is now freely permitted. India is second largest Country in terms of Population
growth and increase in population has a direct relation to FMCG Products.
FMCG sector central and state initiatives
Recently Government has announced a cut of 4 per cent in excise duty to fight with the
slowdown of the Economy. This announcement has a positive impact on the industry. But the
benefit from the 4 per cent reduction in excise duty is not likely to be uniform across FMCG
categories or players. The changes in excise duty do not impact cigarettes (ITC, Godfrey
Phillips), biscuits (Britannia Industries, ITC) or ready-to-eat foods, as these products are
either subject to specific duty or are exempt from excise. Even players with manufacturing
facilities located mainly in tax-free zones will also not see material excise duty savings. Only
large FMCG-makers may be the key ones to bet and gain on excise cut.
Foreign Direct Investment (FDI)
Automatic investment approval (including foreign technology agreements within specified
norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate
Bodies (OCBs) investment, is allowed for most of the food processing sector except malted
food, alcoholic beverages and those reserved for small scale industries (SSI). There is a
continuous growth in net FDI Inflow. There is an increase of about150 per cent in Net Inflow
for Vegetable Oils & Vanaspati for the year 2011.
2.12 INNOVATIONS AND TRENDS IN THE BEVERAGE INDUSTRY
Coffee has been a big mover over the last year, particularly in the Horace sector, with
caramel and vanilla syrups, nuts and Fair-trade products all adding to consumer loyalty and
profit margins. This is likely to transmute further into ready-to-drink products in cans, bottles
and cartons - with indulgent, creamy textures running alongside an increase in cappuccino
and espresso pods for home use
Natural energy looks like being a growing trend in 2012. Consumer awareness of
ingredients is now at its highest level ever and 'natural' is a strong lever when it comes
to beverage purchase. There is greater awareness, too, of terms such as 'antioxidant'
and 'contains vitamin C', with consumers looking for dual functionality from their
drinks. Added value in terms of being 'more than just hydration' is popular when it
comesto meal replacement drinks such as smoothies.
Carbonated soft drinks have seen resurgence in popularity over the last year as 'the
affordable treat' for many families cutting back in difficult economic times. Diet and
zero CDSes are now selling on 50:50 ratios, with full sugar carbonates in developed
regions.
Citrus-flavored juice-enhanced drinks have found a good following during the past
year, with some more exotic juice blends finding new favors, such as lemon and
acerola cherry, coconut and pineapple and grapefruit and elderflower, to name just a
few.
Clear beverages are increasingly popular, with consumers seeing them as 'hydrating'
and natural. More sophisticated alternatives for non-drivers and those watching their
weight are appearing on the pub and club scene.
Ready-to-drink teas are still growing in popularity across the globe, especially in 50
clformats.
Better quality drinks for children. Half-juice and water drinks are easier to drink and
win parental approval.
Packaging is improving its sustainable credentials in leaps and bounds, with
biopolymers such as Coca-Cola's Plant Bottle concept, increasing demand and use of
PET and brown paper cartons, and recyclable labels emphasizing end-of-life planet
awareness.
Music festivals are now recognized as an important forum for beverages, not only for
sampling, sales and marketing of drinks, but also for education regarding recycling on
a grand scale.
CHAPTER –III
COMPANY PROFILE
THE COCA-COLA COMPANY
3.1 HISTORY
oca-Cola was first introduced by John Syth Pemberton, a pharmacist, 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.
CDr. 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.
The operating groups: Market shares
North America group 30%
Latin America group 26%
Europe & Eurasia group 21%
Asia pacific group 16%
Africa and Middle east group 7%
30
2621
16 7
OPERATING AREA M.SHARES
NORTH AMERICA GROUPLATIN AMERICA GROUPEUROPE & EURASIA GROUPASIA PACIFIC GROUPAFRICA & MIDDLE EAST GROUP
CHART 4: COCA-COLA OPERATING AREA MARKET SHARES
3.2 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. Today scores of other brands are offered to meet
consumer preferences in local markets around the world.
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 response, many small and medium-size bottlers consolidated to better serve
giant international customers. The Company encouraged and invested in a number of bottler
consolidations to assure that its largest bottling partners would have capacity to lead the
system in working with global retailers.
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.
3.3 MANIFESTO FOR GROWTH
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
MISSION
To Refresh the World... In body, mind, and spirit
To Inspire Moments of Optimism... Through our brands and our actions
To Create Value and Make a Difference... Everywhere we engage.
VISION FOR SUSTAINABLE GROWTH
PROFIT: Maximizing return to shareowners while being mindful of
our overall responsibilities.
PEOPLE: Being a great place to work where people are inspired to be
the best they can be.
PORTFOLIO: Bringing to the world a portfolio of beverage brands
that anticipate and satisfy peoples’ Desires and needs.
PARTNERS: Nurturing a winning network of partners and building
Mutual loyalty.
PLANET: Being a responsible global citizen that makes a difference.
3.4 HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL)
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
FIGURE 4: COCA-COLA BOTTLING PLANTS IN INDIA
Management philosophy
The major concept of the management philosophy is to retain in the beverage industry and
not diversify in to other areas. The management believes in non capital-intensive areas. In
fact, the beverage industry requires little capital, and produces maximum revenue returns.
The returns from the foreign market are tapped to the most. The corporate objectives are to
increase the shareowners value, the management believes that in increasing the shareholders
value it requires consistent growth in financial results complemented by effective use of the
cash flow.
Marketing area
Here the management is committed to superior market place execution. This is achieved by
decentralized operating structure that places the responsibilities, authority and the
accountability as close to the customers and consumer possible.
The brand
The Coca-Cola consistently ranks first in the world’s most valuable brands. The brand value
is about $39billion. This is heritage of the company. As far as the branch management
concerned, we find that Coca-Cola ranks itself as third only after Microsoft and Louis
volition.
3.5 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:
Coca-Cola
Diet Coke
Thumps Up
Sprite
Fanta
Limca
Maaza
Maaza Milky Delite
Minute Maid Pulpy Orange
Minute Maid Nimbu Fresh
Burn
Kinley Water
Kinley Soda
Schweppes
FIGURE 5: COCA-COLA PRODUCT LINES
Four basic segments
o Refreshment: Csds: Coca-Cola, fanta, sprite, thumsup, limca.
o Rejuvenation: ready to drink tea & coffee-Nestea, Georgia gold.
o Health and nutrition: juice and milks-bibo, Fruitopia, minute maid, maaza.
o Replenishment: water and sports drinks- kinley, Kinley soda.
3.6 MISSION
Coca-Cola exits to create value for our shareowners on a long term basis by building a
business that enhances the Coca-Cola company’s trademarks. This is also is Coca-Cola
ultimate commitment. As the world’s largest beverage company, Coca-Cola refresh the world
Coca-Cola non –alcoholic superior soft drink, both carbonated , and non-carbonated, and
profitable non alcoholic beverage systems that create value for our company, our bottling
partners and our customers. In creating value, Coca-Cola succeed or fail based on our ability
ti perform as worthy stewards of seven of several key assets like,
o To refresh the world...
o To inspire moments of optimism and happiness...
o To create value and make a difference...
3.7 VISION
The world is changing all around us. To continue to thrive as a business over the next ten
years and beyond, we must look ahead, understand the trends and forces that will shape our
business in the future and move swiftly to prepare for what's to come. We must get ready for
tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination
for our business and provides us with a "Road map" for winning together with our bottling
partners. Our vision serves as the framework for our Road map and guides every aspect of
our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and
satisfy people’s desires and needs
Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities
Profit: Maximize long-term return to share owners while being mindful of our overall
responsibilities
Productivity: Be a highly effective, lean and fast-moving organization
FIGURE 6: SUSTAINABLE GROWTH
3.8 FACTORS OF SUCCESS
Our Winning Culture
Our Winning Culture defines the attitudes and behaviors that will be required of us to make
Our 2020 Vision a reality.
Live Our Values
Our values serve as a compass for our actions and describe how we behave in the world.
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it’s up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well
Focus on the Market
Focus on needs of our consumers, customers and franchise partners
Get out into the market and listen, observe and learn
Possess a world view
Focus on execution in the marketplace every day
Be insatiably curious
Work Smart
Act with urgency
Remain responsive to change
Have the courage to change course when needed
Remain constructively discontent
Work efficiently
Act like Owners
Be accountable for our actions and in actions
Steward system assets and focus on building value
Reward our people for taking risks and finding better ways to solve problems
Learn from our outcomes -- what worked and what didn’t
Be the Brand
Inspire creativity, passion, optimism and fun
3.9 MILESTONES ACHIEVED
Stakeholders recognize Coca-Cola India's efforts towards water stewardship and
Sustainability the BU celebrates World Water Day.
Coca-Cola India Bags the Prestigious Golden Peacock Award for CSR, Third year in
a row.
Coca-Cola India Wins Best Exporter Award For Roasted Coffee Beans
Coca-Cola India Receives Global Golden Peacock Award For Corporate Social
Responsibility.
Andhra Pradesh Government Confers 'Best Management Award' To Hindustan Coca-
Cola Beverages Pvt Limited.
Limca Book of Records Launches Music Special 2012 Edition.
3.10 FUTURE PLANS
Coca-Cola is planning to invest $5 billion dollars in the India business between now and
2020. This represents an increase of $3 billion beyond what we had previously committed to
investing in this market”. The investments would be made on increasing bottling lines,
adding new bottling plants, enhancing back-end chain infrastructure as well as marketing by
the company, he said without disclosing details.
In line with its plan to double revenue globally by 2020, Coca Cola had announced in
November last year that the company along with its partners would invest $2 billion in India
over the next five years to enhance its business operations, including setting up a new plant in
the country.
3.11 SWOT ANALYSIS
It is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities,
and Threats involved in the project. It involves specifying the objective of the project and
identifying the internal and external factors that are favorable and unfavorable to achieve that
objective.
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 Inter brand. It was estimated that the Coca-Cola brand was
worth $70.45billion.
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.
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.
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.
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.
CHAPTER-IV
THEORETICAL
FRAMEWORK OF THE STUDY
4.1 MARKETING
arketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.MFor business to consumer marketing, it is "the process by which companies create value for
customers and build strong customer relationships, in order to capture value from customers
in return". For business to business marketing it is creating value, solutions, and relationships
either short term or long term with a company or brand. It generates the strategy that
underlies sales techniques, business communication, and business developments. It is an
integrated process through which companies build strong customer relationships and create
value for their customers and for themselves.
Marketing is used to identify the customer, satisfy the customer, and keep the customer. With
the customer as the focus of its activities, marketing management is one of the major
components of business management. Marketing evolved to meet the stasis in developing
new markets caused by mature markets and overcapacities in the last 2-3 centuries. The
adoption of marketing strategies requires businesses to shift their focus from production to
the perceived needs and wants of their customers as the means of staying profitable.
The Chartered Institute of Marketing defines marketing as "the management process
responsible for identifying, anticipating and satisfying customer requirements profitably. A
different concept is the value-based marketing which states the role of marketing to
contribute to increasing shareholder value. In this context, marketing is defined as "the
management process that seeks to maximize returns to shareholders by developing
relationships with valued customers and creating a competitive advantage.
Marketing strategy
A Marketing Strategy consists of selecting a segment of the market as the company’s target
market and designing the proper “mix” of the product/service, price, promotion, and
distribution system to meet the wants and needs of the consumers within the target market.
4.2 MARKETING MIX
It is a set of four decisions which need to be taken before launching any new product. These
variables are also known as the 4 P’s of marketing. These four variables help the firm in
making strategic decisions necessary for the smooth running of any organization. These
variables are
Product
Price
Place
Promotion
As mentioned before, the marketing mix is characterized by four different but equally
important variables. These variables are never constant and may be changed over time.
However, a change in one of the variables may cause a change in all the other variables as
well. The variables are as follows
1) Product – The first thing you need, if you want to start a business, is a product. Therefore
Product is also the first variable in the marketing mix. Product decisions are the first
decisions you need to take before making any marketing plan. A product can be divided into
three parts. The core product, the augmented product and the tertiary product.
2) Pricing – Pricing of a product depends on a lot of different variables and hence it is
constantly updated. Major consideration in pricing is the costing of the product, the
advertising and marketing expenses, any price fluctuations in the market, distribution costs
etc. Many of these factors can change separately. Thus the pricing has to be such that it can
bear the brunt of changes for a certain period of time. However, if all these variables change,
then the pricing of a product has to be increased and decreased accordingly.
Along with the above factors, there are also other things which have to be taken in
consideration when deciding on a pricing strategy. Competition can be the best example.
Similarly, pricing also affects the targeting and positioning of a product. Pricing is used for
sales promotions in the form of trade discounts. Thus based on these factors there are
several pricing strategies, one of which is implemented for the marketing mix.
3) Place – Place refers to the distribution channel of a product. If a product is a consumer
product, it needs to be available as far and wide as possible. On the other hand, if the product
is a Premium consumer product, it will be available only in select stores. Similarly, if the
product is a business product, you need a team who interacts with businesses and makes the
product available to them. Thus the place where the product is distributed depends on the
product and pricing decisions, as well as any STP decisions taken by a firm.
4) Promotions – Promotions in the marketing mix includes the complete integrated
marketing communications which in turn includes ATL and BTL advertising as well as sales
promotions. Promotions are dependent a lot on the product and pricing decision. What is the
budget for marketing and advertising? What stage is the product in? If the product is
completely new in the market, it needs brand / product awareness promotions, whereas if the
product is already existing then it will need brand recall promotions.
Promotions also decide the segmentation targeting and positioning of the product. The right
kind of promotions affect all the other three variables – the product, price and place. If the
promotions are effective, you might have to increase distribution points, you might get to
increase the price because of the rising brand equity of the product, and the profitability
might support you in launching even more products. However, the budget required for
extensive promotions is also high. Promotions are considered as marketing expenses and the
same needs to be taken in consideration while deciding the costing of the product.
Thus as we see from the above explanations, all the four variables of marketing mix are inter
related and affect each other. By increasing the pricing of the product, demand of the product
might lessen, and lesser distribution points might be needed. On the other hand, the product
USP can be such that maximum concentration is on creating brand awareness, thereby
increasing need of better pricing and more promotions. Finally, the overall marketing mix can
result in your customer base asking for some improvement in the product, and the same can
be launched as the upgraded product.
The above four P’s of marketing give an overall look at the product marketing mix. If product
is a service then there are 3 further P’s taken into consideration namely – people, physical
evidence and process.
4.3 DEVELOPING RESARCH PLAN
After deciding the objective of marketing research the next step is deciding Research plan for
gathering effective information related to this research project. The research consists of
following steps, which are discussed subsequently.
RESEARCH METHODOLOGY
Research in common refers to a search of knowledge. One can also define research as a
scientific & systematic search for pertinent information of a specific topic. It is the pursuit of
truth with the help of study observation, comparison & experiment. 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
Marketing Research: Marketing research is the process of designing, gathering, analyzing,
and reporting information that may be used to solve a specific marketing problem. (Burns
and Bush Definition)
Marketing research: the function that links the consumer, customer, and public to the
marketer through information – information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions; monitor
marketing performance; and improve the understanding of marketing as a process. (AMA
Definition)
Marketing research is the systematic design, collection, analysis & reporting of data &
findings relevant to a specific marketing situation facing the company.(Philip kotler).
Steps in the marketing research
Research Design
A research design is a framework or blueprint for conducting the marketing research project.
It details the procedures necessary for obtaining the information needed to structure or solve
marketing research problems.
A Classification of Marketing Research Designs
FIGURE 7: MARKET RESEARCH CLASSIFICATION
METHODS OF DATA COLLECTION
THERE ARE TWO TYPES OF DATA
1. Primary data
2. Secondary data
1. Primary data collection: Data is collected specially for the study currently undertaken. For
this study a questionnaire was design and the respondents were interviewed personally.
Personal interview is the method in which the related /concerned people are directly
interacted and interviewed.
Primary data can be collected by
Three methods.
a) Observation
b) Experiment
c) Surveys
But here, only surveys method of data collection is preferred which is very suitable to reach
the researcher motto.
A. Research instrument: Printed Questionnaire was used as the research instrument to collect
the required information.
B. Area of surveys: The survey was conducted in different location of Hyderabad city.
Sampling plan: sampling plan consists of
I. Sampling unit: The retailer of Grocery shop, general store, betel shop, restaurant and school
and colleges student was selected from different places of Hyderabad.
II. Sampling size: 125.
III. Sampling procedure: Simple random sampling procedure was followed.
IV. Sampling method: Data were collected by retailer survey.
The retailers are directly contacted and interviewed at their retail counter and with their
customer also.
2) Secondary data collection: For secondary data I have referred to several journals,
office manuals, research websites and other sources of information to make this report
more authentic and useful.
4.4 DISTRIBUTION CHANNEL IN HYDERABAD
At present, the Coca-Cola’s products are produced in the plant (Miypur & Moula ali) and it’s
transferred to various distributor throughout the according to demand and company target.
FIGURE 8: COCA-COLA DISTRIBUTION CHANELS
CHANNEL
(A) GROCERY STORE
Grocery (customer profile): Store stocking a variety of regular uses household items. The
channels provide an opportunity for penetration as it propels home consumption. It includes
all kirana stores, juice, departmental stores, supermarkets, proVISIon stores etc.
Necessary Availability - 2 liter and 300ml
(B) EATING & DRINKING CHANNEL 1
Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller
dhabas. These outlets offer multiple opportunities to effect sales as people usually order
something to drink along with food. It includes
- Restaurants
- Bars and Pubs
- Dhabas
- Cafes
(C) EATING & DRINKING CHANNEL 2
It includes bakery, sweet shops, tea shops, soft drink shops and juice centre.
(D) CONVENIENCE CHANNEL
Pan/bidi shops (customer profile) : This segment includes PAN BIDDI outlets that
Stock cigarettes, mint, and confectionary. It covers STD/ISD phone booths, travel channel
etc. Small outlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml.
CHAPTER - V
ANALYSIS
5.1COMPARATIVE ANALYSIS OF COCA-COLA
5.1.1 COMPANY’S STOCK
NAME OF THE
COMPANY
NO OF OUTLETS IN PERCENTAGE
COCA-COLA 34 27%
PEPSI 66 53%
BOTH 25 20%
TOTAL 125 100%
COCO-COLA PEPSI BOTH0
10
20
30
40
50
60
70
34
66
25
NO OF OUTLETS
NO OF OUTLETS
CHART 5: COMPANY STOCK AT RETAILER’S LEVEL
INTERPRETATION:
From the given table, 34 outlets have Coca-Cola product stock, 66 have Pepsi
stock and 14 have both.
5.1.2 RETAILER’S WILLINGNESS TO SELL COCA-COLA
NO OF OUTLETS IN PERCENTAGE
YES 93 74%
NO 32 26%
TOTAL 125 100%
74%
26%
NO OF OUT LETS IN PERCENTAGE
YESNO
CHART 6: NO OF RETAILER’S WILLINGNESS TO SALE COCA-COLA PRODUCTS
I N T E R P R E T A T I O N :-
From the given table, 73% outlets are ready to sale Coca-Cola products and 26% are
don’t want to sell Coca-Cola products.
5.1.3 VISI COOLERS IN STORES
NAME OF THE
COMPANY
NO OF OUTLETS IN PERCETAGE
COCA-COLA 32 26%
PEPSI 62 50%
BOTH 17 14%
NONE 14 10%
TOTAL 125 100%
COCO-COLA PEPSI BOTH NONE0
10
20
30
40
50
60
70
32
62
1714
NO OF OUT LETS
NO OF OUT LETS
CHART 7: VISI COOLER AVABILITY IN STORES
INTE R PRE TATION:-
From the given table of outlets behavior toward to Coca-Cola product outlets,62 outlets have
Pepsi VISI coolers, 32 have Coca-Cola product VISI coolers,14 have none VISI coolers and 17
have both Coca-Cola product and Pepsi VISI coolers.
5.1.4 COCA-COLA VISI COOLER REQUIREMENT
NO OF OUTLETS IN PERCENTAGE
YES 42 55%
NO 34 45%
TOTAL 76 100%
55%
45%
NO OF OUTLETS IN PERCENTAGE
yes no
CHART 8: COCA-COLA VISI COOLERS REQUIREMENTS
I N T E R P R E T A T I O N :-
From the given table, 42 outlets need Coca-Cola product VISI COOLERS.
5.1.5 SOLD COCA-COLA PRODUCT EARLIER
NO OF OUTLETS IN PERCENTAGE
YES 53 48%
NO 38 42%
TOTAL 91 100%
48%
42%
NO OF OUTLETS IN PERCENTAGE
YESNO
CHART 9:COCA-COLA PRODUCT SOLD EARLIER
I N T E R P R E T A T I O N :-
From the given table, 53 outlets have sold Coca-Cola product earlier and now
converted into Pepsi and 38 have never sold Coca-Cola product.
5.1.6 COCA-COLA SERVICE
NO OF OUTLETS IN PERCENTAGE
YES 32 42%
NO 44 58%
TOTAL 76 100%
YES NO0
5
10
15
20
25
30
35
40
45
32
44
NO OF OUTLETS
NO OF OUTLETS
CHART 10: COCA-COLA SERVICE
I N T E R P R E T A T I O N :-
From the given table 32 outlets said yes and 44 said no.
5.1.7 DAILY SALES
NO OF OUTLETS IN PERCENTAGE
AVERAGE 45 36%
GOOD 57 46%
VERY GOOD 23 18%
TOTAL 125 100%
AVERAGE GOOD VERY GOOD0
10
20
30
40
50
60
45
57
23
NO OF OUTLETS
NO OF OUTLETS
CHART 11: COLD DRINK SALE OF OUTLETS
INTERPRETATION:-
From the given table, 45 outlets have average sale, 57 have good sale and 23
outlets have very good sale of soft drink
5.1.8 REASONS FOR BEING A COCA-COLA RETAILER
NO OF OUTLETS IN PERCENTAGE
VISI COOLER NOT
PROVIDED
14 16%
TIE UP WITH PEPSI/PEPSI
APPROACHED FIRST
26 28%
COCA-COLA PRODUCT
SERVICE NOT GOOD
22 24%
SCHEMES NOT GOOD AS
PEPSI
29 32%
TOTAL 91 100%
VISI COOLER NOT PROVIDED
TIE UP WITH PEPSI COCO-COLA SERVICE NOT
GOOD
SCHEME NOT GOOD AS PEPSI
0
5
10
15
20
25
30
14
26
22
29
NO OF OUTLETS
NO OF OUTLETS
CHART 12: REASON FOR NOT SELLING COCA-COLA COMPANY PRODUCTS
INTERPRETATION:-
From the given table, 14 outlets didn’t sell Coca-Cola product due to absence of
Coca-Cola product VISI coolers, 26 outlets due to Pepsi tie ups and first
approach, 22 due to bad service, and 29 due to not so good schemes.
5.2 BCG-MATRIX FOR THE PRODUCT LINE OF COCA-COLA
Boston consulting group (BCG) matrix is developed by Bruce Henderson of the Boston
consulting group in the early 1970’s.
According to this technique, businesses or products are classified as low or high performers
depending upon their market growth rate and relative market share.
FIGURE 9: BCG MATRIX
STARS
High growth business competing in market where they are relatively strong compared with
the competition. They have a high point shares and are the ideal businesses.
High growth, High market share
CASH COWS
The low-growth business with a relatively high point market shares. These businesses were
stars but now have lost their attractiveness.
Low GROWTH, High market share
DOGS
Businesses that have low relative share and low expected growth rate. Dogs may generate
enough points to sustain but they are rarely, if ever, a competing force.
Low growth, Low market share
QUESTIONMARKS
Businesses with low point share but which may have a high growth rate. This suggests that
they have potential but may require huge ever, a competing force extraordinary effort in order
to grow point share.
High growth, Low market share
Figure 10: COCA-COLA BCG MATRIX
5.3 PORTER’S 5 FORCES MODEL
The five forces model of Porter is and outside-in business unit strategy tool that is
used to make an analysis of the attractiveness (value…) of an industry structure
Allows the development of a competitive strategy
Suggests 5 main forces may be decisive in helping shape the outcome:
· Suppliers
· New entrants
· Substitutes
· Buyers
· Rivalry (Industrial competitors)
Coca-Cola: Porter’s Five Forces
o Rivalry (Condition concentrated on 2 main
Coca-Cola
Pepsi
o Substitutes (Wilde and Thick causing a significant decline in Coca-Cola profits . To
reduce the threats it embraced bottling and concentrated on diversification
Teas
Milk
Coffee
Juice
Alcoholic drinks
Bottled water
Energetic drinks
Other refreshments
Coconut water
o Power of Suppliers
Sugar
Packaging
Bargaining power of suppliers is low due to two reasons.
First, the main inputs are sugar and packaging. Sources of sugar are on the open
market which subsequently makes the creation power of suppliers at low levels.
There are several suppliers for packaging as well as the abundance in supply of
inexpensive aluminum.
Second, direct negotiations from concentrate producers to suppliers are present; an
initiative to encourage reliable supply, faster delivery and lower prices.
o Bargaining Power of Buyers depends on the marketing channel used. For Coca-Cola,
there are six core channels such as:
Super Markets
Convenience Stores
Mass Merchandisers
Fountain
Vending machine
Restaurants and Food stores
Bargaining power of buyer is high for fountain supermarkets and mass merchandising
because of the low profitability and strong negotiation power of retail channels but for
vending bargaining power is non-existing caused by high profitability
o New threats for Indian market
Big cola
Rc cola
Tata Tetley’s fun pill
Tata glucose plus
MORE cola
Local Brands
5.4 SALES PROJECTION
1 REVENUE IN BILLION $
2007 2008 2009 2010 2011 2012 2013 2014 2015 20160
10000
20000
30000
40000
50000
60000
70000
REVENUE IN BILLION $
REVENUE IN BILLION $
YEAR
CHART 13: COCA-COLA REVENUE IN BILLION $
In analyzing Coca-Cola's earnings growth over the past five years, you can see a positive
earnings trend revenue. Even though the company reported a couple of down years the
overall trend is positive. Over the past five years, Coca-Cola's earnings have been increasing
and have shown a 43.32% increase over its 2007 earnings. And also company planning to
invest $30 billion globally by 2020.So automatic it will affect on the future revenue growth.
2 UNIT SALES VOLUME-
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20170
5
10
15
20
25
30
35
UNIT CASE VOLUME IN BILLION
UNIT CASE VOLUME IN BILLION
YEAR
CHART 14: UNIT CASE VOLUME IN BILLION
The company plans to invest $30 billion globally by 2020. One-sixth of the planned global
investment will be made in India.
"Investment in India is focused on delivering innovation, partnerships and a portfolio that
enhances the consumer experience, ensures product affordability and builds brand loyalty to
deliver long-term growth," Kent said.
"Their target is to double their business between 2010 and 2020. What they have achieved in
125 years, they want to create in 10 years,” and also the company has planned to invest $5
billion in India over the next eight years on expanding its bottling and other business
capacities. Coca-Cola’s Plant Bottle is expanding beyond the company’s Dasani bottled water
line in a new three-city pilot program. Customers at college campuses, convenience stores,
sporting events and other outlets
5.5 TREND ANALYSIS
Sept. 3
0, 2007
30-Jun-08
31-Mar-
09
Dec. 31, 2
009
Sept. 3
0, 2010
30-Jun-11
31-Mar-
12
Dec.31,2012
Sep.30,2013
june.30,2014
Mar.31,2015
Dec.31,2015
Sep.30,2016
June.30,2017
-0.2
-0.1
0
0.1
0.2
0.3
0.4
0.5
0.6
SALES DATA INPERCENTAGE
SALES DATA INPERCENTAGE
CHART 15: TREND ANALYSIS
After analysis of Coca-Cola's profitability it tells the story of a solid company with some
declining margins. Over the past 5 years, earnings have increased while some of the listed
profit margins have slipped in 2011. Coca-Cola has a large amount of free cash at hand,
which means it will likely continue to grow for the foreseeable future because of the
investment in $30 billion globally by 2020. Also the company has planned to invest $5 billion
in India over the next eight years on expanding its bottling and other business capacities.
5.6 PRODUCT PROFILE OF COCA-COLA
A. The various products of Coca-Cola available in India are:
1. Coca-Cola:
Coca-Cola is the most popular and biggest-selling soft drink
history, as well as the best-known product in the world.
Available in the following flavors: Cola-Cola Green Tea, Cola
Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola
Raspberry.
2. Diet Coke:
Diet Coke was born in 1982. Diet Coke is the drink for people
who want no calories, but plenty of taste. Known as Coca-Cola
light in some countries, it's now the No. 3 soft drink in the world.
Available in the following flavors: Black Cherry Cola Vanilla,
Cola, Cola Green Tea, and Cola
Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry
3. Fanta:
Fanta was introduced in the United States in 1960. Consumers
around the world, particularly teens, fondly associate Fanta with
happiness and special times with friends and family. This
positive imagery is driven by the brand's fun, playful personality,
which goes hand in hand with its bright color, bold fruit taste and
tingly carbonation.
4. Kinley:
Kinley is a carbonated water that comes in wide array of such as
tonic, bitter lemon, club soda and a myriad of fruit flavors.
Available in the following flavors: Apple Peach, Bitter
Grapefruit, Bitter Herbal, Bitter Lemon, Bitter Water, Blueberry Pomegranate, Club
Soda, Ginger Ale, Lemon and Raspberry
5. Limca:
This thirst-quenching beverage features a fresh, light lemon-lime
taste and funl oving attitude. It's a homegrown, national treasure
in India, that is acquired by the Coca-Cola Company in 1993.
Limca continues to build a loyal following among young adults
who love the lighthearted way it complements the best moments of their lives. This drink
is available in lemon flavor.
6. Sprite:
Introduced in 1961, Sprite is the world's leading lemon-lime
flavored soft drink. Sprite is sold in more than 190 countries
and ranks as the No. 4 soft drink worldwide, with a strong
appeal to young people. Millions of people enjoy Sprite
because of its crisp, clean taste that really quenches your thirst. But Sprite also has an
honest, straightforward attitude that sets it apart from other soft drinks. Sprite encourages
you to be true to who you are and to obey your thirst. Available in the following flavors:
Bitter Lemon Citrus Grapefruit, Citrus, Lemon and Lemon Lime.
7. Thumps up:
It is a leading sparkling soft drink and most trusted brand in
India. Originally introduced in 1977, Thums up was acquired
by the Coca Cola Company in 1993.This brand known for its
strong, fizzy taste and its confident, mature and uniquely masculine attitude.
8. PULPY ORANGE:
The company developed a process that eliminated 80 % of the
water in orange juice. Forming a frozen concentrate that when
reconstituted created orange juice.
Available in 400 ml,1 L and 1.25 L and also in PET pack size.
9. MAAZA:
Mango. It is a fruit associated with good times like no other. Apy
called the king of fruits.
5.7 PRODUCT LINE OF INDIGENOUS COMPETITOR PEPSICO
PepsiCo: Pepsi has been bringing fun and refreshment to consumers for over 100 years.
From its humble beginnings over a century ago, Pepsi-Cola has grown to become one of
the best-known, most-loved products throughout the world. Today, the company
continues to Innovate, creating new products, new flavors and new packages in varying
shapes and sizes to meet the growing demand for convenience and healthier choices.
The various product of Pepsi available in India are:
1. PEPSI:
Pepsi is the most saleable product of PepsiCo. It is popular in the younger generation all
around the world
2. DIET PEPSI:
With its light, crisp taste, Diet Pepsi gives you all the refreshment you need -with zero
sugar, zero calories and zero carbs, Light, Crisp, refreshing.
3. MIRINDA:
Mirinda was originally produced in Spain. Mirinda is a brand of soft drink available in
fruit varieties including orange, grapefruit, and apple, strawberry, pineapple, banana, and
passion fruit and grape flavors. The orange flavor of Mirinda represents the majority of
Mirinda sales worldwide.
4. 7UP:
7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the
brand are held by Dr Pepper Snapple Group in the United States, and PepsiCo (or its
licensees) in the rest of the world.
5. MOUNTAIN DEW:
Mountain Dew (also known as Mtn Dew as of late 2008) is a soft drink Distributed and
manufactured by PepsiCo. Mountain Dew (and its energy drink counterpart known as
AMP) often incurs the disapproval of health experts due to its relatively high caffeine
content for a soft drink or energy drink.
6. PEPSI BLUE:
Pepsi Blue is a berry-flavored soft drink produced by PepsiCo. It was launched in India
near the cricket world cup to associated the Pepsi with the Indian people as Blue is
Official colour of Indian cricket team. The flavor of Pepsi Blue was thought by drinkers
to be similar to cotton candy with a berry-like aftertaste (it resembled that of blueberries
or Raspberries).
7. SLICE:
Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in
1984. Varieties of Slice have included Apple, Fruit Punch, Grape, Passion fruit, Peach,
Mandarin Orange, Pineapple, Strawberry, Cherry Cola, "Red", Cherry-Lime, and Dr
Slice.
5.8 MAJOR COMPITATORS IN INDIAN BEVERAGE INDUSTRY
PEPSICO
PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and
a product portfolio that includes 22 brands that generate more than $1 billion each in annual
retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola
Brands
Foods
Beverages-
PepsiCo India’s expansive portfolio includes iconic refreshment
DABUR INDIA LIMITED
Dabur India Limited is the fourth largest FMCG Company in India with interests in Health
Care, Personal Care and Food Products. It is most famous for
Dabur Chyawanprash and Hajmola and REAL fruit juices.
Brands-
Dabur Real, Dabur burst, Dabur Activ, Dabur Lemonez
RED BULL
Red Bull Energy Drink is a market leader in the 500 crore energy drink
segment.
Brands-
Red Bull, Red Bull sugar free, Red bull energy shots, Red bull cola
CAFÉ COFFEE DAY
Café Coffee Day is a division of India's largest coffee conglomerate,
Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL). ABCTCL grows
coffee in its own estates of 10,000 acres (4047 ha). The land value of the
plantations is US$250–300 million. It is the largest producer of Arabica beans in
Asia. Apart from this, the group also sources coffee from 11,000 small growers. ABCTCL is
one of India’s leading coffee exporters with clients across USA, Europe and Japan. They
operate about 1000 café’s across India
Beverages
Hot Coffees- Cafe Latte, Cafe Mocha , Cappuccino, Irish Coffee, Macchiato, Solar Eclipse,
Aztec, Black Coffee, Espresso, Ethiopian
Cold Coffees- All Day Refresh.., Cafe Frappe, Chill O Coffee, Devils Own, Kaapi Nirvana,
Mochachillo, Tropical Ice ber...
Hoteas- Darjeeling-Divi..., Lemon Demon, Assam Express, Masala Garam
Frosteas- Lemon Freeze, Straw berry
Choco-lattes- Chocó Rocks, Hot Chocó Latte
Fruiteazers- Cool Blue, Green Apple Sod..., Lychee Chill, Mango Shake, and Strawberry
Blus..., Black Currant B....
NESTLE INDIA
Nestlé is the world's leading Nutrition, Health and Wellness Company. Nestle
is known for coffee and tea products
Brands-
Nescafe, Nestea, Nescafe 3 in 1
TATA GLOBAL BEVERAGES LIMITED
Tata Global Beverages Limited (formerly Tata Tea Limited) is an
Indian multinational non-alcoholic beverages company headquartered in Kolkata, West
Bengal, India and a subsidiary of the Tata Group. It is the world's second-largest
manufacturer and distributor of tea and a major producer of coffee.
Brands-
TEA- Tata Tea, Tetley, Chakra Gold and Gemini
COFFEE BRANDS
Tata's Coorg 100% Pure Filter Coffee , Tata's Coorg Double Roast, Tata Kaapi
CHAPTER – VI
SUMMARY, CONCLUSIONS & SUGGESTIONS
6.1 SUMMARY & FINDINGS
As we know that Coca-cola is very big organization and market leader in cold drink products.
It has maximum market share in cold drink, packaged drinking water & energy drink which
are its main/core products. But in case of Hyderabad market Coca-cola is losing their market
shares because of new competitors, health issues, local brands & existing competitors’
PepsiCo. Coca-cola losing in market share was found out by the analysis
Because of low profit margin almost all retailers are not interested in Coca-Cola
Company selling.
Retailers are not interested because they don’t have VISI coolers facility but if
company provides them such facility they will be ready to sale coca-cola products.
Retailers were selling different brands. Because they were able to receive more
margins from non popularized brand as compare to well known brand.
Because of new competitors For .Ex- Rc cola, Coca-cola is losing market.
Out of 125 samples 73% outlets are ready to sale Coca-Cola products.
From total samples 34 outlets have Coca-Cola product stock, 66 have Pepsi
stock and 14 have both means Coca-cola is losing market.
From the total samples 62 outlets have Pepsi VISI coolers, 32 have Coca-Cola
product VISI coolers,14 have none VISI coolers and 17 have both Coca-Cola product
and Pepsi VISI coolers.
53 outlets have sold Coca-Cola product earlier and now converted into
Pepsi and 38 have never sold Coca-Cola product.
Out of 76, 32 outlets are ready to sale Coca-cola product and 44 are
not ready
From the sale point of view 45 outlets have average sale, 57 have
good sale and 23 outlets have very good sale of soft drink
Main reason for not selling Coca-cola are 14 outlets didn’t sell Coca-
Cola product due to absence of Coca-Cola product VISI coolers, 26 outlets
due to Pepsi tie ups and first approach, 22 due to bad service, and
29 due to not so good schemes.
6.2 SUGGESTIONS
The suggestion are related to the factors which the retailers behavior towards Coca-cola
products.
It should focus on untapped markets where there is scope to increase its market share.
Distributors should focus on finding out the requirements of outlets and the problems
they are facing.
The process of VISI coolers installation should be simplified.
They should focus on repairing faulty VISI coolers quickly.
Distributors should monitor market developers and salesmen regularly to avoid
inefficiencies in the supply process.
Shortages during the summer season should be avoided because it conveys bad signal
to the outlets and consumers.
Coca-cola have to focus more on the flexibility of outlets i.e.; according to the
consumption & products of the outlets they have to allocate the margin.
Surprise visits should be made to increase the efficiency of Market Developers.
Coca-cola should focus on all wine shops because they provide good business for
all seasons
Coca-cola has to focus more on HORECA distribution channels.
Coca-cola has to launch drinks in 150-180ml within Rs 10-12 price range in pet/can
pack.
Coca-cola has to organise retaiers meat in every quarters. So they can feel good or
they can reliase it they are the part of coca-cola family.
6:3 CONCLUSION
The Sampling activity was a good first step into the area of Marketing and Sales. It gave good
amount of exposure mainly because after being trained, trainees were given an opportunity to
carry out the process ourselves. It helped in developing a considerable amount of convincing
skills, because, it took a lot of it to convince the store managers and retailer’s for keeping
Coca-cola product and their requirements from the company and even more to convince the
retailer’s to getting reviews from them about the company. A good understanding of the
market was accomplished as around 125 retailers were spoken to and that group consisted of
a variety of retailer’s. This even helped in the polishing of communication skills, a must-have
to survive and make it big in the present world. It even gave a good understanding of
behavior of retailer’s when talked in different situations. It was a good opportunity to work
on the skill of patience, as a large number of retailers were to be dealt with. It helped in
developing the kind of relations one needs to uphold in the corporate world and it helped in
building up the right attitude.
As all the points in the above mentioned paragraph, are the must-have skills for anyone in the
field of Marketing and Sales, the training period was a good experience and a good stepping
stone into the real business world.
As a future line of research, the Marketing and Sales Department at HCCBPL could offer projects like:
Analysis Impact of advertisements on the Sales of a particular product
Analysis of major trends in the Indian Non-Alcoholic Beverage market
Analysis of changing trends in the market for Coca-Cola products
Formulation of Market penetration strategies.
BIBLIOGRAPHYAND
WEBLIOGRAPHY
BOOKS AND JOURNALS:
Philip Kotler, Gary Armstrong, Prafulla Y.Agnihotri and Eshan ul Haque,”Principles
of Marketing- A south Asian Perspective”, 13th Edition, Pearson Education, New
Delhi(2010).
Ranjan Saxena,”Marketing Management”, 4th Edition, Tata McGraw Hills Education
Private Limited (2010).
Walker Boyd and Millions Larreche,”Marketing Strategy- A decision focused
Approach”, 4th Edition, Tata McGraw Hills Education Private Limited, New Delhi
(2003).
Krishna K hawaldar and Vasant M Cavale,” Sales Distribution Management Text and
Cases”, 4th Edition MacGraw Hills Company, New Delhi (2007).
Richard I Levin and David S Rubin,”Statistics for Management”, 7th Edition Pearson
Education, New Delhi (2011).
N.D Vohra,”Quantitative Techniques in Management”, 3rd Edition, The McGraw
Hills Companies, New Delhi (2001).
Naresh Malhotra and Satyahusan Dass,”Marketing Research – An Applied
Orientation”, 6th Edition, Pearson Education, New Delhi(2007).
Collin Gilligan and Richard M.S Wilson, “Strategic Marketing Planning”, 5th Edition,
Elsevier Production (2006).
Websites.
http://www.cocacola-india.comcybernoon.com
http://news.bbc.co.uk
http://www.worldofcoca-cola.com
http://www.coca-cola.com
http://www.ko.com
http://www.hoovers.com
http://www.google.com
http://www.wikipedia.org
ANNEXURE
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