coca cola

The effectiveness of distribution channel of coca cola co. at Gangavathi

GUNJAHALLI HIRE NAGAPPA COLLEGE OF COMMERCE

PAMPANAGAR GANGAVATHI, DIST: KOPPAL

AFFILIATED TO GULBARGA UNIVERSITY, GULBARGA

(NAAC ACCREDITED -”B” GRADE)

A PROJECT REPORT ON

“CUSTOMER SATISFACTION & ITS IMPACT ON SALES OF RCM

BUSINESS AT GANGAVATHI”

(A case Study of Gangavathi Branch)

SUBMITTED TO

GULBARGA UNIVERSITY, GULBARGA

SUBMITTED BY

VINOD

2009-10

G.H.N.COLLEGE GANGAVATHI-583227


GUNJAHALLI HIRE NAGAPPA COLLEGE OF COMMERCE,

PAMPANAGAR, GANGAVATHI. DIST: KOPPAL

AFFILIATED TO GULBARGA UNIVERSITY, GULBARGA

(NAAC ACCREDITED – “B” GRADE)

CERTIFICATE

This is to certify that Sri VINOD B.B.M VI semester student of this

institution, he has prepared project report entitled “CUSTOMER

SATISFACTION & ITS IMPACT ON SALES OF RCM BUSINESS

AT GANGAVATHI” is authentic report carried out under our

guidance and supervision for the partial fulfillment for completion of

degree of B.B.M of Gulbarga University, Gulbarga.

Date:

Place:

Project Report Guide Principal



DECLARATION

I hereby declare that this project report title “ CUSTOMER

SATISFACTION & ITS IMPACT ON SALES OF RCM BUSINESS

AT GANGAVATHI ”, during 2009-10 as part of corporate exposure &

learning in carried under guidance of our faculty.

Place: Gangavathi VINOD

Date:

ContentsChapter-I

Introduction

Executive summery

Objectives of the study

Scope of the study

Benefits of the study

Data collection approach

Limitations of Study

Chapter-II

Organization profile



Values & commitment at the coca cola company

Value chain

Working with the bottlers

The coca cola system

Chapter-III

Coca cola production I India

State’s of coca cola co. India

Organizations sales chart for Karnataka

Distribution channel of coca cola production

Types of operations under taken by the company

Sampling

Chapter-IV

Data Analysis & Interpretation

Chapter—V

Findings

Suggestions

Conclusion

ANNEXURE

Questionnaires

Bibliography



CHAPTER-IExecutive summery

Introduction

Objectives of the study

Scope of the study

Benefits of the study



Data collection approach

Limitations of Study

INTRODUCTIONThe project started from 2nd AUG 2009 to 31st AUG 2009 and 16 weeks (2

days in a week from Jan 08 to April 08) in Gangavathi city.

The project was carried due to the criteria of the University for the

Completion of Masters of Business Administration.The main objective of this

in-plant training was to get an exposure to the working environment in an

organization. This was an opportunity for me to relate concepts learned by me

to the practical application in the organization.

This in-plant training helped me in interacting with a highly experience

managers which helped me to improve my practical knowledge.

EXECUTIVE SUMMARY



This project report is on the “THE STUDY TO ASSESS THE

EFFECTIVENESS OF DISTRIBUTION CHANNEL OF COCA COLA

CO. AT GANGAVATHI CITY”

This project for done for Coca-Cola Pvt. Ltd. With their distribution points at

Gangavathi Ultimate objective of the every organization is to satisfy the needs

and wants of their customer in which distribution channel plays a vital role.

The study will be done taking 100 as the Sample Size. The sampling method

used y is “Stratified Random Sampling “. The source for conducting survey

was taken from the distributors Red Outlet List provided by the distributors in

Gangavathi city.

This study helps the organization in the following way:

To know performance of existing distribution channel

To know if there are any flows in the channel

To know their retailers satisfaction level with respect to the existing

channel.

OBJECTIVE OF THE PROJECT:

“The main objective behind this project is to study and understand

distribution channel and its effectiveness in bringing products in right time to

right customers”

To study the main objective the following are the necessities:

The performance level of the existing distribution channel.



The cover area

Problems related to the existing channel

Satisfaction level of the customers (retailers) towards the existing

distribution channel.

SCOPE OF THE STUDY

The study is confined to the retailers in Gangavathi city

BENEFITS OF THE STUDY

The study will confront me the following:

The culture of the company

Their distribution channel

Satisfaction level of the customers

DATA COLLECION APPROACH:

The Data was collected through two sources,

1. Primary sources:

Questionnaire

Personal interaction

2. Secondary sources:

Related information from internet:

Organization Report

LIMITATIONS OF THE STUDY



Due to the time constraint the study is restricted only to the

retailers of Gangavathi City and not to the surrounding villages

The coverage of the objective of the study is limited to the extent

of the information given by the company.

Inspire of the above mentioned limitations, every effort has been made and

the report is prepared to the best of my knowledge.



CHAPTER-IIOrganization profile

Values & commitment at the coca cola company

Value chain

Working with the bottlers

The coca cola system

ORGANIZATION PROFILE

COCA – COLA Pvt. Ltd

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 today1894 … 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 Asia 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.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 the sum of one dollar. A third Chattanooga lawyer, John T. Lupton,

soon joined their venture.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.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's one of the most recognized icons in the world - even in the dark!

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.

1920s and '30s … 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, Gangavathi, Italy and South Africa.

By the time World War II began, Coca-Cola was being bottled in 44

countries.

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.

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.

1960sNewbrands

Introduced 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.

1970s and ‘80s… Consolidation

As technology led to a 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.

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 …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.

Vision

”To achieve sustainable growth; we have established a vision with clear

goals.



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”.

Mission

”Everything we do is inspired by our enduring 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”.

Values

they are guided by shared values that they will live by as a company and as

individuals.

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"



Beliefs

“There is much in our world to celebrate, refresh, strengthen and protect. The

Coca-Cola Company is a vibrant network of people, in over 200 countries,

putting citizenship into action. Through our actions as local citizens, we strive

every day to refresh the marketplace, enrich the workplace, protect the

environment and strengthen our communities”. We are a local employer, with

responsibility to enable our people to tap into their full potential; working at

their innovative best and representing the diversity of the world we serve”.

”We are an investor in local economies and a driver of marketplace

innovation, with a responsibility to act as a good steward of our natural

environment”.

”And we are a local citizen, understanding our responsibility to contribute to

an improved quality of life in our communities”.

Values and Commitments at The Coca-Cola Company

The reputation of The Coca-Cola Company is built on trust and respect. Our

employees and those who do business with us around the world know we are

committed to earning their trust with a set of values that represent the highest

standards of quality, integrity, excellence, compliance with the law, and

respect for the unique customs and cultures in communities where we operate.

Our Company has always endeavored to conduct business responsibly and

ethically. We respect international human rights principles aimed at

promoting and protecting human rights our acknowledgment of these

international principles is consistent with our dedication to enriching the



workplace, preserving the environment, strengthening the communities where

we operate.

Supplier Guiding Principles

The Supplier Guiding Principles (SGP) is a vital pillar of The Coca-Cola

Company's workplace accountability programs. These programs are driven by

the belief that good corporate citizenship is essential to our long-term

business success and must be reflected in our relationships and actions in our

workplaces and the workplaces of those who are authorized to directly supply

our business.

Recognizing that there are differences in laws, customs, and economic

conditions that affect business practices around the world, we believe that

shared values must serve as the foundation for relationships between The

Coca-Cola Company and its suppliers. The Supplier Guiding Principles

communicate our values and expectations and emphasize the importance of

responsible workplace policies and practices that comply, at a minimum, with

applicable environmental laws and with local labor laws and regulations. The

principles outlined below reflect the values we uphold in our own policies,

and we expect our direct suppliers to follow the spirit and intent of these

guiding principles.

Freedom of Association and Collective Bargaining

Respect employees' right to join, form, or not to join a labor union without

fear of reprisal, intimidation or harassment. Where employees are



represented by a legally recognized union, establish a constructive

dialogue with their freely chosen representatives and bargain in good faith

with such representatives.

Prohibit Child Labor

Adhere to minimum age provisions of applicable laws and regulations.

Prohibit Forced Labor and Abuse of Labor

Prohibit physical abuse of employees and prohibit the use of all forms

of forced labor, including prison labor, indentured labor, bonded labor,

military labor or slave labor.

Eliminate Discrimination

Maintain workplaces that are free from discrimination or physical or

verbal harassment. The basis for recruitment, hiring, placement, training,

compensation, and advancement should be qualifications, performance,

skills and experience.

Work Hours and Wages

Compensate employees relative to the industry and local labor market.

Operate in full compliance with applicable wage, work hours, overtime

and benefits laws, and offer employees opportunities to develop their skills

and capabilities, and provide advancement opportunities where possible.

Provide a Safe and Healthy Workplace



Provide a secure, safe and healthy workplace. Maintain a productive

workplace by minimizing the risk of accidents, injury, and exposure to

health risks.

Protect the Environment

o Conduct business in ways which protect and preserve the

environment.

8. Compliance with Applicable Laws and Standards

Suppliers to The Coca-Cola Company and suppliers authorized by The

Coca-Cola Company are required to meet the following standards, at a

minimum, with respect to their operations as a whole:

Laws and Regulations

Supplier will comply with all applicable local and national laws, rules,

regulations and requirements in the manufacturing and distribution of our

products and supplies and in the provision of services.

Child Labor

Supplier will comply with all applicable local and national child labor

laws.

Forced Labor

Supplier will not use forced, bonded, prison, military or compulsory labor.



Abuse of Labor

Supplier will comply with all applicable local and national laws on abuse

of employees and will not physically abuse employees.

Freedom of Association and Collective Bargaining

Supplier will comply with all applicable local and national laws on

freedom of association and collective bargaining.

Discrimination

Supplier will comply with all applicable local and national

discrimination laws.

Wages and Benefits

Supplier will comply with all applicable local and national wages and

benefits laws.

Work Hours and Overtime

Supplier will comply with all applicable local and national work hours and

overtime laws.

Health and Safety

Supplier will comply with all applicable local and national health and

safety laws.



Environme nt

Supplier will comply with all applicable local and national

environmental laws.

Demonstration of Compliance

Supplier must be able to demonstrate compliance with the Supplier

Guiding Principles at the request and satisfaction of The Coca-Cola

Company

These minimum requirements are a part of all agreements between The Coca-

Cola Company and its direct and authorized suppliers. We expect our

suppliers to develop and implement appropriate internal business processes to

ensure compliance with the Supplier Guiding Principles. The Company

routinely utilizes independent third-parties to assess suppliers' compliance

with the SGP. The assessments generally include confidential interviews with

employees and on-site contract workers. If a supplier fails to uphold any

aspect of the SGP requirements, the supplier is expected to implement

corrective actions. The Company reserves the right to terminate an agreement

with any supplier that cannot demonstrate that they are upholding the SGP

requirements.

Quality

We ensure the quality and safety of our beverages through The Coca-Cola

Quality System (TCCQS), our integrated approach to managing quality,

environment, health and safety. We continuously review TCCQS to ensure it

meets the most stringent and up-to-date global requirements related to food



safety, as well as quality management methods, industry best practices and

marketplace conditions.

In our ingredient evaluation laboratories, for example, we perform precise

analyses of fruit juices and other ingredients sent to us by our suppliers, to

ensure and to improve product quality. Our processes, too, undergo constant

scrutiny, to safeguard the water we use in our products and the packaging that

carries them to our consumers. We inform and educate our business partners

about our standards so that they meet the highest quality requirements. Under

(TCCQS) The Coca-Cola Quality System, quality is our highest business

objective and our enduring obligation.

worldwide initiative involving every aspect of our business. Everyone who

works for or with Coca-Cola is empowered and expected to maintain the

highest standards of quality in products, processes and relationships. TCCQS

mandates in-depth self-assessment throughout our operations, by all our

business units. This enables us to continually raise our standards.

The latest version of our system-Evolution 3, launched in 2004-has been

externally benchmarked against international quality standard ISO 9001. It

also incorporates the Hazard Analysis Critical Control Point system.

Value Chain

Our Suppliers

Our suppliers include those business partners who supply our system

with materials, including ingredients, packaging and machinery as well

as goods and services. At a minimum, all authorized and direct

suppliers must comply with all applicable laws and regulations,



including those concerning child labor, forced labor, abuse of labor,

freedom of association and collective bargaining, discrimination, wages

and benefits, working hours and overtime, health and safety, and

environmental practices. All our new agreements with suppliers require

compliance with our Supplier Guiding Principles.

Our Customers

Our customers include large, international chains of retailers and

restaurants, as well as small, independent businesses. Some of our

customers are major corporations as globally familiar as the name

Coca-Cola; others are the corner market or the local pushcart vendor.

Whether customers are large or small, we work with them to create

mutual benefit. Helping them to grow their businesses helps to grow

ours, too. Together with our bottling partners, we serve our customers

through account management teams, providing services and support

tailored to their needs.

Customer Development and Training: We provide support to smaller

customers to help make their businesses more efficient and profitable.

These centers provided training in general management, marketing,

finance, inventory management and customer service-at no cost-to

more than 21,000 independent retailers in 2005.

\We also work with customers to broaden the range of beverages they

offer, provide nutritional information and ensure our beverages are

marketed responsibly.

Packaging - Why It Matters



Far from being a burden and waste, packaging adds value to products by

extending the shelf-life of goods, minimizing breakage, reducing

transportation and handling costs, safeguarding public health and providing

product-use information and convenience to the consumer. The negative

perceptions of packaging simply as a troublesome byproduct are at direct

odds with the significant role it plays in society.

Recognizing the role of packaging in no way diminishes the need to further

minimize its impact on the environment. In fact, in an emerging era of scarcer

natural resources, rising energy costs and greater global environmental

awareness, companies focused on long-term success are moving beyond

simply limiting impacts and are working toward competitive packaging

solutions that maximize social and environmental value.

About Bottling

One of our great strengths is our ability to conduct business on a worldwide

scale while maintaining a local approach. At the heart of this approach is our

bottling system. Before any of our 2,400 beverage products is consumed by

anybody around the world, it has to be produced, packaged and distributed.

Since we reach 6 billion consumers in over 200 countries, our bottling system

has to be the best. Our business opportunities are enormous and our

commitment to our consumers and communities is great.

WORKING WITH THE BOTTLERS



PLANET: We act as a responsible global citizen, focused on our

environment efforts and making a difference wherever we engage.

PEOPLE: We inspire to be a great workplace where people are inspired to be

the best they can be.

PROFIT: We maximize returns to our shareowners while being mindful of

our overall responsibilities.

PORTFOLIO: We bring the global market place beverage brands that

anticipate and satisfy people’s desires and needs.

PARTNERS: We actively nurture a winning network of beverages and

bottling patterns building mutual loyalty

Our bottling partners are local companies so they are rooted in their

communities, thinking and acting locally. They are employers, purchasers of

local goods and services, good neighbors, and, of course, producers of the

world's most popular beverages.

It's a big job, and sometimes it's done quite creatively. In Indonesia, for

instance, boats transport Coca-Cola® and our other brands between the many



hundreds of islands that make up that nation. In the Amazon, where the main

road is often the river itself, water-borne distribution is also common. In some

of the higher elevations of the Andes, Coca-Cola is sometimes transported by

four-legged power. Across much of Africa, bottlers deliver to thousands of

family-run kiosks and home-based stores on which local economies depend.

Our System: How We Operate

Coca-Cola is often thought to be one brand made by one company. In reality,

it is a vibrant business system, in more than 200 countries around the world,

made up of The Coca-Cola Company and more than 300 Coca-Cola bottlers.

Most of our bottlers are independently owned and not controlled by our

Company. Together with our bottling partners, we operate the most extensive

beverage distribution system in the world. Known informally as the Coca-

Cola system, this network of 848 plants, approximately 200,000 vehicles and

more than nine million coolers and vending machines helps us to manufacture

and distribute our products to customers and consumers around the world,

where our beverages are consumed at a rate of more than 1.3 billion servings

each day.

The Coca-Cola System

The Coca-Cola Company

Owns the global Coca-Cola brand and owns or licenses over 400 other

brands. Manufactures and sells beverage concentrate and syrup to

bottling and canning operations, distributors, fountain wholesalers and



some fountain retailers. Manufactures and sells some finished

beverages, both carbonated and noncarbonated.

Our Bottling Partners

Combine our syrup with carbonated water or combine our concentrate

with sweetener and water and/or carbonated water (depending on the

product) to produce a finished beverage.

Place beverages in cans or bottles and then transport the finished

beverages to warehouses or to customer locations.

Our bottling partners operate the majority of Coca-Cola bottling and canning

operations, producing and distributing more than 80 percent of our worldwide

volume.

The Coca-Cola Company also operates a limited number of bottling and

canning facilities.

Bottling partners range from international and publicly traded businesses to

small, family-owned operations. Although we invest in the majority of

bottling companies, we have a controlling ownership interest in only a small

number, meaning that the vast majority of bottlers operate with separate

governance and management structures, and in accordance with applicable

laws and customs. Our relationship with these partners is one of collaboration

and support, based on mutual self-interest, common goals and shared values.

We make every effort to positively influence environmental activities and

policies throughout our bottling system and to provide information from both

our Company-owned operations and our broader system.



Community

We live and work in more than 200 countries and have deep roots in

communities around the world. We are connected to the lives and livelihoods

of those communities. And we are intensely committed to the economic

success and continued growth of these communities.

We contribute to economic success through our day-to-day business, by

providing jobs in our own operations as well as jobs in businesses we touch

along the way. We call it the multiplier effect, where we not only positively

affect those directly employed by our business but also create and expand

businesses that do business with us.

In addition to economic impact, we invest in local economies through

substantive and locally relevant community programs. Wherever we operate,

we work with local leaders, businesses and governments to identify

community needs and aspirations. The resulting partnerships and programs

are an important part of how we contribute to the well-being of the

communities where we operate.

Economic Impact

The Coca-Cola business is essentially a local one. With our bottling partners,

we produce our products in more than 800 plants around the world. In those

plants and other facilities, we employ local people, pay taxes to governments,

pay suppliers for goods, services and capital equipment, and support

community investment programs.



We support socioeconomic development in developing and emerging markets

through economic opportunities and wealth creation as well as technology

and knowledge transfer; local entrepreneurship; and other international

investment.

Local Initiatives

The Company and our bottling partners contribute to a wide range of

community causes in countries around the world. In keeping with the local

nature of our business and the differing needs of individual communities, our

approach is primarily a local one, with community investment priorities

determined on a market-by-market basis. We work with people in

communities and governmental organizations and NGOs to create and support

projects most relevant to communities.

Responding to Local Needs: We support a wide range of initiatives that

respond to specific local needs:

Health: Tackling such health issues as polio, tuberculosis,

hepatitis, malnutrition and hygiene education

HIV/AIDS: Educational campaigns, condom distribution,

HIV/AIDS orphanages, hospices

Micro enterprise: Supporting self-help groups, establishing

funds, providing training

Cultural heritage and the arts: Promoting the arts and artists,

preserving heritage



CHAPTER-III......................................................................Co

ca cola production I India



.......................................................................................................Sta

te’s of coca cola co. India

......................................................................Or

ganizations sales chart for Karnataka

......................................................................Dis

tribution channel of coca cola production

......................................................................Ty

pes of operations under taken by the company

......................................................................Sa

mpling

COCA-COLA PRODUCTS IN INDIA:

1. Coca-cola

2. Thumps Up

3. Sprite

4. Fanta

5. Limca

6. Maaza



7. Kinley

8. Minute Maid

Out of which

Coca-cola, Maaza, Kinley, Sprite, Minute Maid are Coca-Cola

products

Thumps up, Limca, Fanta are the products of Parle which are

purchased by the Coca-Cola Co.

PROFITABLE BRANDS ARE:

300ml - Maaza, Coke, Sprite

600 ml - all brands

2 liter – All brands

STATE”S OF COCA-COLA Co. INDIA

India is been divided into three (3) strata’s they are

A) North b) South c) Central

DIVISION OF THE SOUTH INDIA FOR COCA-COLA INDIA

SOUTH (REGIONAL VICE PRESIDENT)

ANDRAPRADESH CHENNAI KERALA

KARNATAKA



Note: Each state has an AREA GENERAL MANAGER (A.G.M)

A.G.M. for Karnataka is Mr. Krishnan

DIVISION FOR KARNATAKA UNIT OF COCA-COLA INDIA

The entire Karnataka unit is divided into mainly TWO (2) territories and

accordingly there is general sales manager been assigned to each territory.

1. North Karnataka

2. South Karnataka

Note: The AGM for North Karnataka is: Mr. Vilas

The AGM for South Karnataka is: Mr. Deepak

South Karnataka is further divided into

1. Bangalore city

2. Up-country consisting places like Mysore Mangalore, Tumkur,

Kolar etc.

ORGANIZATION’S SALES CHART FOR KARNATAKA

AREA GENERAL MANAGER

GENERAL SALES MANAGER

SALES MANAGER



ASSOCIATE SALES MANAGER

AREA SALES MANAGER

SENIOR SALES EXECUTIVE

EXECUTIVE

SALES OFFICER

TRAINEE SALES OFFICER

RURAL SALES PROMOTER / MARKET DEVELOPERS

DISTRIBUTION CHANNEL OF COCA-COLA PRODUCTS FOR

GANGAVATHI, GADAG, HAVERI, NORH KANARA

BOTTLING PLANT (BANGALORE)

DEPOT (DHARWAD)

DISTRIBUTORS (GANGAVATHI, GADAG, HAVERI, NORH KANARA)

RETAILERS

CONSUMERS

BANGALORE PLANT DETAILS

PLANT



ACCOUNTS LOGISTICS SALES H R MARKETING QUALITY

CONTROL

The plant is divided into the following FOUR (4) departments,

1. ACCOUNTS

2. LOGISTICS

3. SALES

4. HUMAN RESOURCE

5. MARKETING

6. QUALITY CONTROL

TYPES OF OPERATIONS UNDERTAKEN BY THE COMPANY

Coca-cola India Holding, the intermix of the company-owned bottling

operations (COBO’s) and franchisee owned bottling operations (FOBO’s).

COMPANY-OWNED BOTTLING OPERATIONS (COBOS): COBO

refers to the operations directly carried by the company. These COBO’s have

to work under the guidelines by the Coca-Cola Co. There are three (3) COBO

units in South India they are at following places:

Bangalore (Biddi)

Andhra Pradesh

Chennai

“FRANCHISEE OWNED BOTTLING OPERATIONS” (FOBO’S):

FOBO’s refers to the operations carried out by the FRANCHISER’s

The plant at Hospet was initially a FOBO unit but now it’s been purchased by

the company and soon the company operations will start in that plant.



DISTRIBUTORS DETAILS IN GANGAVATHI

Criteria for selecting the distributors:

The company looks at the prospects before permitting/Authorizing for distributor. Therefore the criteria’s are as follows,

He should have a godown

Vehicles

Manpower

Deposit for cases/crates at the rate of 200 each

Liquid value

Distributors in Gangavathi

1. Trimurthi

2. Desai

3. Tejasvi

Number of units possessed by distributors

In season - 14 units

In off-season – 6 units

* Units refers to the vehicles possessed by the distributors for local logistics

Factors influencing the assignment of areas to distributor’s salesman

1. An average number of outlets the salesman effectively works on. A

salesman can handle 60 outlets on an average effectively in a day

2. Depending on the frequency of a particular route. The distributors follow three types of frequencies they are:



A) Daily

b) Alternative days

c) Once a week

Note: Once in a week is only followed for the up country areas

Working of distributors The distributor first has to maintain the following

The Brand pack separately after unloading the vehicle i.e. the

brand order in the following sequence

Coke

Lime

Orange

Juice

Water

Days stock to meet the demand.

The company gives target to the distributors and these distributors with help of sales executives break the target into

1. Daily2. Weekly3. Brand wise4. Sales wise

Here the distributor focuses on weaker brands and tries to push maximum

number of these weaker units into the mixed cases ordered by the retailers.

For Ex: The sales of Fanta are considered to be low then the distributor adds

more number of Fanta units in a mixed case.



The distributor have to maintain a four (4) day stock with them which will

become the reorder level once when the order is placed at the Dharwad depot

the stock comes up the next day but an important point to note here is unless

and until the empty bottles reach the depot the new stock will not reach the

distributor.

Distributors route Planning: Distributors identify two routes they are,

Potential route

Non Potential route

Note: For Potential the vehicle goes daily and for non potentials it goes

once in a week

The potential routes are those routes in which the distributor gets

maximum business as the number of outlets will be more and therefore the

vehicle goes daily to meet the market demand.

Ex: If a distributor has 400 outlets in his area he has to plan accordingly as

per his route wherein he has to visit 60 outlets per route.

OPERATIONAL PLANS FOR THE YEAR

Distributors have two plans a year

1. First plan from January 1st to June 15th



2. Second Plan from June 15th to December 31st

FIRST PLAN:

This plan is considered as yielding season where maximum business will be

earned. The 70% of the target needs to be achieved during this season

SECOND PLAN:

Here in this plan there will be minimum business and during this season there

will be lot of promotional activities undertaken.

The role of distributor in market:

The distributors’ salesman is trained properly with respect to his behaviors

with the retailers. As soon as the vehicle goes to the outlet it is the duty of the

sales person to.

1. Greet the retailer and have a look at the cooler/refrigerator.

2. He has to suggest the retailer about the stock needed

3. Convince him for purchase

4. Place the products in the cooler as per brand order

5. Look at the warm displays

6. Follow up and handle complaints

Support from the company to the distributor



The company supports the distributors in terms of incentives during the off

season i.e. during the second plan in order to retain the distributor.

EXAMPLE FOR CALCULATION OF ROI (RETURN ON

INVESTMENTS) FOR DISTRIBUTORS:

The deposit of 1500 cases at the rate of 200 Rs per case = 3, 00,000

Liquid Value on an average including all mini, 300 ml, half litre and 2

liter = 2, 00,000

Go down deposit = 20,000

Vehicle = 4, 80,000

Therefore the total investment is Rs 10, 00,000

Now to calculate the ROI = ({Volume X Case rate} – Expenses) / Investment

If a distributor has 50,000 volume, 11 Rs per case and Other Expenses 35,000

then,

50,000 X 11 =55,000 – 35,000 =20,000 Rs

Therefore ROI = 20,000 /10, 00,000 = 0.20 = 20%

Hence the ROI is favorable.

SAMPLING

Selection of Sample:

Sampling allows us to concentrate our attention upon relatively small number

of people and hence devote more energy to ensure that the information

collected from them is accurate.

POPULATION:



People from the Gangavathi city.

SAMPLE FRAME:

Retailers at Gangavathi city.

SAMPLE UNIT:

Retailers who sell Cold-drinks

SAMPLING SIZE:

100 retailers only.

SAMPLE METHOD:

Stratified Sampling.

RESEARCH DESIGN

The research was divided into two parts they were,

1. Survey

2. Implementation

In the month of December survey was conducted and in the remaining period

implementation was carried out.

Survey:

For the survey purpose the entire Gangavathi city was divided into three

strata’s,

1. Bus stand area which had places like Bus stand, Fort road ,

Khade Bazaar, Chavat galli, Shivaji Nagar etc.

2. College Road , Tilakwadi , Vadagoan, Shahpur etc.

3. Club road, Sadhaahiv nagar, Azam nagar, Nehru nagar, JNMC

road Shiva Basav nagar etc.

As per the route planner provided by the company the survey was conducted

through questionnaires. The route



planner consisted the list of RED OUTLETS

DETAILS OF RED OUTLETS:

The Red outlets are divided as:

1. BRONZE

2. SILVER

3. GOLD

4. DIAMOND

The Basis for the above division is as follows

Bronze outlets are those outlets who sell less than 299 cases a Year.

Silver outlets are those outlets who sell 300 cases to 499 cases a Year.

Gold outlets are those outlets who sell 500 cases to 799 cases a Year.

Diamond outlets are those outlets that sell 800 and above cases a Year.

Implementation

After the survey was conducted the Implementation work was carried out for

the surveyed outlets, during the remaining period i.e. 16 weeks (2 days in a

week from Jan 07 to April 07).

In this procedure the visits were made to the outlets along with the company

vehicle and seen that the different problems encountered with the outlets

during the survey were sorted out and seen to it the promotional activities

were actually implemented.



The problems of display, Credit etc was known during survey. So these

problems were solved during the implementation part.

It was also seen that every outlet survey had a proper display of the

company’s product.

In short the product delivery system was learnt.

MEASURMENT TECHNIQUES:

This project is analyzed with the help of SPSS software wherein the data is

analyzed with the help of

Bar Graphs

Frequency tables

Percentage tables



CHAPTER-IV Data Analysis & Interpretation



1. What is the nature of the outlet?

products frequency percent Valid

percentage

Cumulative

percentage

coke 23 23.0 23.0 23.0

Pepsi 1 1.0 1.0 24.0

shared 76 76.0 76.0 100.0

total 100 100.0 100.0

Interpretation:

The above chart shows that out of the surveyed outlets 76% outlets surveyed

are shared outlets, 23% are coke monopoly outlets, and 1% is Pepsi

monopoly.



2) How is the relationship with the distributor?

product frequency Percentage Valid

percentage

Cumulative

percent

Good 99 99.0 99.0 99.0

Bad 1 1.0 1.0 100.0

Total 100 100.0 100

Interpretation:

The above chart shows that 99% of the retailers surveyed had good opinion

towards the distributors; therefore the distributors have to maintain the same.



Only 1% of the retailers surveyed have bad opinion therefore the distributors

have to control this aspect because the word of mouth plays a very important

role and they should try to make their relationship 100%.

Q3) How many times the distributor visits outlets per week

product Frequency Percentage Valid % Cumulative %

Once 7 7.0 7.0 7.0

Alternative 47 47.0 47.0 54.0

Daily 46 46.0 46.0 100.0

Total 100 100.0 100.0

Interpretation



The above chart reveals the frequency of visit made by the distributor in the

market. This chart shows that to 47% of the outlets surveyed the visit was on

alternative days, 46% of the outlets surveyed the visit was on daily basis and

7% of the outlets surveyed the visits are made once a week. This shows that

the company is mostly following the Alternative and daily routes.

Q4) how many times he is expected to visit Statistics

product Frequency percentage Valid

percent

Cumulative

percent

Once 3 3.0 3.0 3.0

alternative 36 36.0 36.0 39.0

daily 61 61.0 61.0 100.0

Total 100 100.0 100.0

Interpretation:



The above chart shows that there is a huge demand for Coke Products in

Gangavathi city and therefore 61% of the retailers are expecting daily visits

from the distributors in order to meet the demand from the consumers,

therefore the company has to look to this aspect seriously. 36% expect an

alternative day’s visit instead of daily visits; the outlets which are non

potential outlets expect the distributor to visit once a week

Q 5) Are coke's product delivered on time Statistics

Products Frequency Percentage Valid % Cumulative %

Yes 75 75.0 75.0 75.0

No 25 25.0 25.0 100.0

Total 100 100.0 100.0

Interpretation:



The above chart shows that delivery of the products is on time and 75% of the

retailers have agreed to this question and 25% have not agreed.

The company has to make efforts to supply the products to these 25% outlets.

Q 6) Are you satisfied with the supply each time?

Product Frequency Percent Valid % Cumulative %

Yes 66 66.0 66.0 66.0

No 34 33.0 33.0 100.

Total 100 100.0 100.0

Interpretation:



The chart shows that the company is effective during each supply with respect

to the behaviors and suggestions to the retailers.

Therefore 66% of the retailers surveyed are satisfied with the supply during

each delivery and 34% are dissatisfied with the same.

Q 7) Sales per week Statistics

Product Frequency Percentage Valid % Cumulative %

0-10 50 50.0 50.0 50.0

10-20 45 45.0 45.0 95.0

20-above 5 5.0 5.0 100.0

Total 100 100 100.0

Interpretation:

The chart shows that the sales per week of 50% of the retailers is 0-10 cases

and 45% is 10-20 cases so efforts should be made to increase the sales by

proper supply and other promotional activities. Another method is to supply

according to their wants and there should not be shortage of products to these

outlets.



CHAPTER-V Findings

Suggestions

Conclusion



FINDINGS

Most of the outlets are shared.

The basic problem is that the supply from the plant to the depot and then to

the distributors takes a long time due to which the distributors are not in

the position the supply the required quantity to the retailers.

On an average the sales per week of the retailers is between 0-20 cases.

The sales people and the distributor have maintained good relationship

with the retailers.

On an average the expected visits are daily.



SUGGESTIONS

1. The company must have a super stockiest in gangavathi city so

that this can cater not only the need of the gangavathi market but also

the surroundings places.

2. The company has to convert Pepsi outlets into coke outlets by

giving them promotions like schemes, gifts, proper supply.

3. The company has to start its plant in Hospet as soon as possible

so that there will be no problem to the distributors as well as the

retailers with respect to the stock.

4. The company has to put on their best efforts to convert the76%

shared outlets into coke monopoly outlets by giving promotional

activities and also by on time delivery of stocks which plays a very

important role.

5. 36% of the retailers expect alternative days visits instead of daily

visits, the outlets which are non potential outlets expect the distributor

to visit once a week therefore the company has to supply accordingly.

6. To make the satisfaction level of the retailers to 100% the

company has to supply properly to the remaining 34% outlets surveyed.



CONCLUSION

Distribution Channel plays a very important role especially with respect to the

soft drink industry because if the product is not available on time the

consumes will switch on to other brands and the company will lose its market

share and hence an effective distribution channel is the need of this industry.

The distribution channel of Coca Cola Company is effective



ANNEXURE

Questionnaires

Bibliography



QUESTIONAIRE FOR RETAILERS

Name: ____________________________

Address:___________________________

Contact No: _______________________

Email ID: __________________________

1. Gender: Male ( ) Female ( )

2. What is the nature of outlet?

a) Coke b) Pepsi c) shared

3. Relationship of the distributor/market developers/sales executives with you

a) Good b) Bad

4. How many times a distributor visits your outlet per

week?

a) Once b) alternative days c) daily

5. Are coke’s product delivered in time?

a) Yes b) no



6. Are you satisfied with the supply of coke during each delivery?

a) Yes b) no

7. Your sales per week (No. of cases)

a) 0-10 b) 10-20 c) 20 above

8) How do you rate the service of coca cola?

Good Bad Average

9) Are the coca cola outlets in the gangavathi city are connivance to reach?

1) Yes 2) No

12) Display of the products in the coca cola outlets?

1) Organized 2) unorganized

10) Which factor do you consider while purchasing coca cola products?

1) Product quality

2) Incentive

3) Service of the coca cola

4) Reasonable Price

5) Availability of the product at coca cola outlets.


BIBLOGRAPHY:

All the information needed to complete this project is obtained from the

following sources:

1. Mr. Rajesh Coke Sales Executive for North Karnataka.

2. Company Website: www.coca-cola.com

3. Search Engines

4. Market Developers.

5. Distributors

6. Marketing Research Book by Toll and Hawkins

http://www.coca-cola.com/

coca cola

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