coke report

Chapter – 1 Introduction to the topic

Need / Significance of Study

Objectives of study

Scope of study

Research design

Limitations of the study

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INTRODUCTION:

Retailer survey is to be done “TO ASSESS THE EFFECTIVENESS OF

DISTRIBUTION CHANNEL OF COCA COLA At Visakhapatnam”. The areas

selected in Visakhapatnam are Gajuwaka, Simhagiri Colony, Azemabad,

KailashNagar, Nellmukku, HB Colony, RH Colony, Peeda Gantyada, Kailash

Nagar, Sanjeeva Nagar, BC Colony, Dayal Nagar, etc. I have been given a

project on “A STUDY TO ASSESS THE EFFECTIVENESS OF

DISTRIBUTION CHANNEL OF COCA COLA CO.” This project done for

Coca-Cola Pvt. Ltd. With their distribution points.

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 150 as the Sample Size. The sampling method used is “Stratified Random Sampling “. The source for conducting survey was taken from the distributors Red Outlet List provided by the distributors in Visakhapatnam. 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.

In these I need to go every outlet to get some information regarding all the

Brands of the Soft drinks i.e. about their strategies, service, delivery problem,

cooler problem i.e. whether the company is providing or they using of their

own. All these following questions have been prepared based on the retailer’s

prospective.

The coca-cola company is facing the problem with Pepsi as leading product for

sale. So it focuses on the people those who live in near rural areas of

Visakhapatnam in order to make them stay with the product. For this issue they

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introduced a concept called display of products in every individual outlet.

There we faced a problem with language. Coca-Cola is the most popular and

biggest-selling soft drink in history, as well as the best brand.

On May 8, 2011; Coca-Cola celebrated its 125th anniversary. Created in 1886

in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a

fountain beverage at Jacob's Pharmacy by mixing Coca-Cola syrup with

carbonated water. Coca-Cola was patented in 1887, registered as a trademark in

1893 and by 1895 it was being sold in every state and territory in the United

States. In 1899, The Coca-Cola Company began franchised bottling operations

in the United States. Coca-Cola might owe its origins to the United States, but

its popularity has made it truly universal. Today, you can find Coca-Cola in

virtually every part of the world.

NEED/SIGNIFICANCE OF STUDY:

The customer needs to know the place that where it is comfortable and

visible to the end user. All this are considered to be silly but makes a lot

of difference in the minds of consumers. See, we can`t expect the people

only to buy coca-cola product that we predict. Even we need to attract

the consumer where he steps into. So for that reason we need to get the

display in order to reach out of the each and every individual.

The main purpose of the survey was to visit the outlets in a particular

sub route and get as much information as possible.

To know the competitive position of Coca cola brands and other brands

such as Pepsi.

To know the most consumption pattern of the consumer the situation

demand a market analysis through survey which gives an over view of

the market in quantitative terms.

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OBJECTIVE OF STUDY:

“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 market survey for “A STUDY TO ASSESS THE EFFECTIVENESS OF

DISTRIBUTION CHANNEL OF COCA COLA CO.” In Vishakhapatnam city.

The scopes of study (survey) areas selected in Vishakhapatnam are Gajuwaka,

Simhagiri Colony, Azemabad, KailashNagar, Nellmukku, HB Colony, RH

Colony, Peeda Gantyada, Kailash Nagar, Sanjeeva Nagar, BC Colony, Dayal

Nagar, etc

The scope of study is to reach the places of the Vishakhapatnam and make

them drink (availability).My study deals with THE EFFECTIVENESS OF

DISTRIBUTION CHANNEL OF COCA COLA CO. products in each and

every place especially to the areas selected in Vishakhapatnam which includes

the rural areas also. This leads to generate lots of ideas regarding the new

strategies to be adopted in the near future which help to increase in Profitability

market. There is a change in the sales of coca-cola further.

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RESEARCH DESIGN AND METHODOLOGY:

1) Primary data collection

2) Secondary data collection

1) The primary data collection can be done in two ways.

a) Interview

b) Questioner

2) The secondary data collection can be taken up by two ways

a) By the reference of Sales executive &channel executive

b) Internet

Selection of measurement technique

Quantitative analysis, bar & pie chart

Primary consideration of sampling

-Population: Retailers of Vishakhapatnam city

-Sample frame: Selected areas in Vishakhapatnam

-Sample size: 150 outlets

-Sample plan: Visit to every outlet in a selected area

Method of Analysis

Quantitative

LIMITATIONS OF STUDY:

The study was confirmed to Vishakhapatnam city

Limitation of time.

The project report conducted only in Vishakhapatnam area, it may differ from places to places.

The findings are based on the survey conducted in the month of January

and March. But it differs in seasons.

The outlet owners may not give some true information related to other

brands and may hide related information.

The bias of my knowledge makes me to get this detailed information

which other may get more than this.

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Chapter – 2 Industry Profile

Organisational Profile

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Organisational Profile:

History:

Coca-Cola was invented by Doctor John Pemberton a pharmacist from Atlanta

Georgia in May of 1886. John Pemberton concocted the Coca Cola formula in

a three legged brass kettle; all this was done in his backyard. The name Coca

Cola was actually given to John Pemberton by his bookkeeper Frank Robinson.

Frank Robinson had excellent penmanship. He first scripted "Coca Cola" into

the flowing letters which has become the famous logo we know and love today.

The soft drink was first sold to the public at the soda fountain in Jacob's

Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink

were sold each day. Sales for that first year added up to a total of about $50.

The funny thing was that it cost John Pemberton over $70 in expanses, so the

first year of sales were a loss. Until 1905, the soft drink, marketed as a tonic,

contained extracts of cocaine as well as the caffeine-rich kola nut.

Dr .John Pemberton

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In 1887, another Atlanta pharmacist and businessman, Asa Candler bought the

formula for Coca Cola from inventor John Pemberton for $2,300.By the late

1890s, Coca Cola was one of America's popular fountain drinks; Candler's

aggressive marketing of the product takes credit for that. With Asa Candler,

now at the helm, the Coca Cola Company increased syrup sales by over 4000%

between 1890 and 1900. Advertising was an important factor in John

Pemberton and Asa Candler's success and by the turn of the century, the drink

was sold across the United States and Canada. Coca Cola began selling syrup

to independent bottling companies licensed to sell the drink. Still today, the US

soft drink industry is organized on this principle.

Evolution of Coca Cola

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One afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was

done, he carried it a few doors down to Jacobs' It was 1886, and in New York

Harbor, workers were constructing the Statue of Liberty. Eight hundred miles

away, another great American symbol was about to be unveiled. Like many

people who change history, John Pemberton, an Atlanta pharmacist, was

inspired by simple curiosity Pharmacy. Here, the mixture was combined with

carbonated water and sampled by customers who all agreed --this new drink

was something special. So, Jacobs' Pharmacy put it on sale for five cents a

glass. Ember ton’s bookkeeper, Frank Robinson, named the mixture Coca-

Cola®, and wrote it out in his distinct script.

To this day, Coca-Cola is written the same way. In the first year, Pemberton

sold just 9 glasses of Coca-Cola a day. A century later, The Coca-Cola

Company has produced more than 10 billion gallons of syrup. Unfortunately

for Pemberton, he died in 1888 without realizing the success of the beverage he

had created. Over the course of three years, 1888-1891, Atlanta businessman

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As a Griggs Candler secured rights to the business for a total of about $2,300.

Candler would become the Company's first president, and the first to bring real

vision to the business and the brand.

Asa G. Candler, a natural born salesman, transformed Coca-Cola from an

invention into a business. He knew there were thirsty people out there, and

Candler found brilliant and innovative ways to introduce them to this exciting

new refreshment. He gave away coupons for complimentary first tastes of

Coca-Cola, and outfitted distributing pharmacists with clocks, urns, calendars

and apothecary scales bearing the Coca-Cola brand. People saw Coca-Cola

everywhere, and the aggressive promotion worked. By 1895, Candler had built

syrup plants in Chicago, Dallas and Los Angeles. Inevitably, the soda's

popularity led to a demand for it to be enjoyed in new ways. In 1894, a

Mississippi businessman named Joseph Biedenharn became the first to put

Coca-Cola in bottles. He sent 12 of them to Candler, who responded without

enthusiasm. Despite being a brilliant and innovative businessman, he didn't

realize then that the future of Coca-Cola would be with portable, bottled

beverages customers could take anywhere. He still didn't realize it five years

later, when, in 1899, two Chattanooga lawyers, Benjamin F. Thomas and

Joseph B. Whitehead, secured exclusive rights from Candler to bottle and sell

the beverage --for the sum of only one dollar.

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Imitation may be the sincerest form

of flattery, but The Coca-Cola Company was none too pleased about the

proliferation of copycat beverages taking advantage of its success. This was a

great product, and a great brand. Both needed to be protected. Advertising

focused on the authenticity of Coca-Cola, urging consumers to "Demand the

genuine" and "Accept no substitute." The Company also decided to create a

distinctive bottle shape to assure people they were actually getting a real Coca-

Cola. The Root Glass Company of Terre Haute, Indiana, won a contest to

design a bottle that could be recognized in the dark. In 1916, they began

manufacturing the famous contour bottle. The contour bottle, which remains

the signature shape of Coca-Cola today, was chosen for its attractive

appearance, original design and the fact that, even in the dark, you could

identify the genuine article. As the country roared into the new century, the

Coca-Cola Company grew rapidly, moving into Canada, Panama, Cuba, Puerto

Rico, France, and other countries and U.S. territories. In 1900, there were two

bottlers of Coca-Cola; by 1920, there would be about 1,000.

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Coca cola enjoyed in 53 countries worldwide. It introduced 6 packs. In 1925,

6000000 drinks per day. Perhaps no person had more impact on The Coca-Cola

Company than Robert Woodruff. In 1923, four years after his father Ernest

purchased the Company from Asa Candler, Woodruff became the Company

president. While Candler had introduced the U.S. to Coca-Cola, Woodruff

would spend more than 60 years as Company leader introducing the beverage

to the world beyond. Woodruff was a marketing genius who saw opportunities

for expansion everywhere. He led the expansion of Coca-Cola overseas and in

1928 introduced Coca-Cola to the Olympic Games for the first time when

Coca-Cola travelled with the U.S. team to the 1928 Amsterdam Olympics.

Woodruff pushed development and distribution of the six pack, the open top

cooler, and many other innovations that made it easier for people to drink

Coca-Cola at home or away. This new thinking made Coca-Cola not just a

huge success, but a big part of people's lives.

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THE WOODRUFF LEGACY (1919-1940)

The War and Its Legacy (1941-1959)

Coca cola enjoyed in 120 countries worldwide by Introducing Coke. In 1941,

America entered World War II. Thousands of men and women were sent

overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered

that "every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he

is, and whatever it costs the Company." In 1943, General Dwight D.

Eisenhower sent an urgent cablegram to Coca-Cola, requesting shipment of

materials for 10 bottling plants. During the war, many people enjoyed their first

taste of the beverage, and when peace finally came, the foundations were laid

for Coca-Cola to do business overseas. Woodruff’s vision that Coca-Cola be

placed within "arm's reach of desire," was coming true --from the mid-1940s

until 1960, the number of countries with bottling operations nearly doubled.

Post-war America was alive with optimism and prosperity. Coca-Cola was part

of a fun, carefree American lifestyle, and his imagery of its advertising --happy

couples at the drive-in, carefree moms driving big yellow convertibles --

reflected the spirit of the times.

Coca cola enjoyed in 165 countries worldwide. It introduced can in 1960. In

1981 Roberto c. Goizueta became chairman and CEO of the coca cola

company After 70 years of success with one brand, Coca-Cola®, the Company

decided to expand with new flavours: Fanta®, originally developed in the

1940s and introduced in the 1950s; Sprite® followed in 1961, with TAB® in

1963 and Fresca® in 1966. In 1960, The Coca-Cola Company acquired The

Minute Maid Company, adding an entirely new line of business juicesto the

Company. The Company's presence worldwide was growing rapidly, and year

after year, Coca-Cola found a home in more and more places: Cambodia,

Montserrat, Paraguay, Macau, Turkey and more. Advertising for Coca-Cola,

always an important and exciting part of its business, really came into its own

in the 1970s, and reflected a brand connected with fun, friends and good times.

The international appeal of Coca-Cola was embodied by a 1971 commercial,

where a group of young people from all over the world gathered on a hilltop in

Italy to sing "I'd Like to Buy the World a Coke." In 1978, The Coca-Cola

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Company was selected as the only Company allowed selling packaged cold

drinks in the People's Republic of China.

Coca cola enjoyed in 165 countries worldwide. In 1982 diet coke was

introduced. The 1980s the era of legwarmers, headbands and the fitness craze,

and a time of much change and innovation at The Coca-Cola Company. In

1981, Roberto C. Goizueta became chairman of The Board of Directors and

CEO of The Coca-Cola Company. Goizueta, who fled Castro's Cuba in 1961,

completely overhauled the Company with a strategy he called "intelligent risk

taking." Among his bold moves was organizing the numerous U.S. bottling

operations into a new public company, Coca-Cola Enterprises Inc. He also led

the introduction of diet Coke®, the very first extension of the Coca-Cola

trademark; within two years, it had become the top low-calorie drink in the

world, second in success only to Coca-Cola. One of Goizueta's other initiatives,

in 1985, was the release of a new taste for Coca-Cola, the first change in

formulation in 99 years. In taste tests, people loved the new formula,

commonly called “new Coke.” In the real world, they had a deep emotional

attachment to the original, and they begged and pleaded to get it back.

Critics called it the biggest marketing blunder ever. But the Company listened,

and the original formula was returned to the market as Coca-Cola classic®, and

the product began to increase its lead over the competition a lead that continues

to this day.

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DIET COKE AND NEW COKE (1982-1989)

NEWMARKETS AND BRAND (1990-1999)

In 1993 pet bottles are introduced. Coca cola enjoyed in 200 countries

worldwide. The 1990s were a time of continued growth for The Coca-Cola

Company. The Company's long association with sports was strengthened

during this decade, with on-going support of the Olympic Games, FIFA World

Cup™ football (soccer), Rugby World Cup and the National Basketball

Association. Coca-Cola classic became the Official Soft Drink of NASCAR

racing, connecting the brand with one of the world's fastest growing and most

popular spectator sports. And 1993 saw the introduction of the popular

"Always Coca-Cola" advertising campaign, and the world met the lovable

Coca-Cola Polar Bear for the first time. New markets opened up as Coca-Cola

products were sold in East Germany in 1990 and returned to India in 1993.

New beverages joined the Company's line-up, including Powerade® sports

drink, Qoo® children's fruit drink and Dasani® bottled water. The Company's

family of brands further expanded through acquisitions, including Limca®,

Maaza® and Thums Up® in India, Barq's® root beer in the U.S., Inca Kola®

in Peru, and Cadbury Schweppes'® beverage brands in more than 120 countries

around the world. By 1997, the Company already sold 1 billion servings of its

products every day, yet knew that opportunity for growth was still around

every corner.

In 1886, Coca-Cola® brought refreshment to patrons of a small Atlanta

pharmacy. Nowwell into its second century, the Company's goal is to provide

magic every time someone drinks one of its more than 400 brands. Coca-Cola

has fans from Boston to Budapest to Bahrain, drinking brands such as Ambasa,

Vegitabeta and Frescolita. In the remotest comers of the globe, you can still

find Coca-Cola. Coca-Cola is committed to local markets, paying attention to

what people from different cultures and backgrounds like to drink, and where

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and how they want to drink it. With its bottling partners, the Company reaches

out to the local communities it serves, believing that Coca-Cola exists to

benefit and refresh everyone it touches.

From the early beginnings when just nine drinks a day were served, Coca Cola

has grown to the world’s most ubiquitous brand, with more than 1.4 billion

beverage servings sold each day. When people choose to reach for one of The

Coca-Cola Company brands, the Company wants that choice to be exciting and

satisfying, every single time.

Mr. Atul Singh President and CEO, Coca-Cola India

Atul Singh took over as the President and CEO, Coca-Cola India from 1st

September 2005. Atul holds a MBA degree from Texas Christian University.

Prior to this assignment, Atul Singh was the President of East, Central & South

(ECS) China Division in January 2005. Prior to joining Coca-Cola, Atul

worked for the Colgate Palmolive Company for 10 years and held several roles

including Country General Manager, Nigeria (1995-1998), CFO then General

Manager, Romania (1992-1995) and Finance Manager, USA Body Care (1990-

1992), Prior to Colgate, Atul worked as an Auditor with Price Waterhouse in

New York.

Coca-Cola, the corporation nourishing the global community with the world’s

largest selling soft drink concentrates since 1886, returned to India in 1993

after a 16 year hiatus, giving new thumbs up to the Indian soft drink market. In

the same year, the Company took over ownership of the nation’s top soft-drink

brand and bottling network. It’s no wonder our brands have assumed an iconic

status in the minds of the world’s consumers. 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, Gold spot, Limca, Maaza, which

were floated by Parle, as these products had achieved a strong consumer base

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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.

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COMPANY PROFILE:

“We sell moments of pleasure, cents at a time, 1.6 billion servings every day,

and we feel that there is tremendous continued opportunity both today and

tomorrow. In the coming decade, as a billion new consumers enter into the

middle class around the world, we see great opportunity for our per capita

consumption to continue rising. And we firmly believe that our Coca-Cola

system is ideally and uniquely positioned to capture this opportunity and

achieve the goals of our 2020 Vision.”- says Muhtar Kent Chairman and Chief

Executive Officer, Coca Cola Company.

Muhtar Kent (born in 1952), is a Turkish American businessman, who is

currently Chairman and Chief Executive Officer (CEO) of The Coca-Cola

Company. He was appointed to assume the position of Chief Operating Officer

of the Company in 2008.

Muhtar Kent found a job at The Coca-Cola Company through a newspaper ad.

He toured the country in trucks to sell Coca-Cola, and thereby learned its

distribution, marketing and logistics systems.

In 1985, he was promoted to the general manager position of Coca-Cola

Turkey and Central Asia, and transferred the headquarters of the company from

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Izmir to Istanbul. Three years later, he was appointed vice president of Coca-

Cola International, responsible for 23 countries in a region from the Alps to the

Himalayas. Living in Vienna, Austria, he served at this post until 1995.

From 1989 to 1995, he served as president of the Company’s East Central

Europe Division during which he was responsible for 23 countries.

Promoted further, Muhtar Kent became in 1995 managing director of Coca-

Cola Amatil-Europe. In two years, he increased the turnover of the company

about 50%, which covered bottling operations in 12 European countries. In

1999, he left the Coca-Cola Company after 20 years of service. Returning to

Turkey, Muhtar Kent assumed the post of top executive of Efes Beverage

Group at Anadolu Group, the largest local shareholder of the Coca-Cola

franchise in Turkey and one of Europe's largest international beverage

businesses. He extended the company's territory from the Adriatic to China.

In May 2005, he re-joined Coca-Cola after almost 6 years and was appointed

president and chief operating officer of the company’s North Asia, Eurasia and

Middle East Group, a position reporting directly to chairman and chief

executive officer Neville Isdell. Muhtar Kent's rise continued and he was

promoted in January 2006, the newly-created position of president of

International Operations. In this capacity, he was responsible for all operations

outside of North America, and all group presidents outside of North America

reported to him. His successful career took him finally to the summit of the

Coca-Cola Company, which named him chairman and chief executive officer,

effective July 1, 2008. He currently serves on the board of directors of the

National Committee on United States-China Relations. While CEO of Coca-

Cola in 2008, Muhtar Kent's earnings totaled $19,628,585, which included a

base salary of $1,100,000, a cash bonus of $4,500,000, stocks granted of

$2,999,975, and options granted of $10,280,428

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One of the Coca-Cola Company's headquarters buildings in Atlanta

About the Company:MISSION:

Coca Cola Roadmap starts with their mission, which is enduring. It declares

our purpose as a company and serves as the standard against which we weigh

our actions and decisions.

1. To refresh the world. (In mind, body and spirit. )

2. To inspire moments of optimism and happiness. (Through our brands

and our actions.)

3. To create value and make a difference. (Everywhere we engage.)

VISION:

“The world is changing all around us. To ensure our business will continue to

thrive over the next 10 years and beyond, we are looking ahead to understand

the trends and forces that will shape our industry in the future. Our 2020 Vision

creates a long-term destination for our business. It provides us with business

goals that outline what we need to accomplish with our global bottling partners

in order to continue winning in the marketplace and achieving sustainable,

quality growth. For each goal, we have a set of guiding principles and

strategies for winning throughout the entire Coca-Cola system.”

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The Coca-Cola Promise:

The Coca-Cola Company exists to benefit and refresh everyone who is touched

by our business.

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.

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Focus on the Market:1. Focus on needs of our consumers, customers and franchise partners 2. Get out into the market and listen, observe and learn 3. Possess a world view 4. Focus on execution in the marketplace every day 5. Be insatiably curious

Work Smart

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1. Act with urgency 2. Remain responsive to change 3. Have the courage to change course when needed 4. Remain constructively discontent 5. Work efficiently

Act like Owners 1. Be accountable for our actions and inactions 2. Steward system assets and focus on building value 3. Reward our people for taking risks and finding better ways to solve

problems 4. Learn from our outcomes -- what worked and what didn’t

Be the Brand Inspire creativity, passion, optimism and fun

Organization Structure in HCCBPL

Hindustan Coca-Cola Beverages Private Limited

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Manufacturing Process of HCCBPL

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TYPES OF OUTLETS

The company has divided their outlets on the basis of the following criteria-

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1. Channel

2. Volume

3. Income group

CHANNEL

The various routes formulated by HCCBPL for distribution of products is as

follows: Key Accounts: The customers in this category collectively contribute a

large chunk of the total sales of the Company. It basically consists of

organizations that buy large quantities of a product in one single transaction.

The Company provides goods to these customers on credit, payments being

made by them after a certain period of time i.e. either a month of half a month.

Examples: Clubs, fine dines restaurant, hotels, corporate houses etc.

Future Consumption: This route consists of outlets of Coca-Cola products,

wherein a considerable amount of stock is kept in order to use for future

consumption. The stock does not exhaust within a day or two, instead as and

when required stocks are stacked up by them so as to avoid shortage or non-

availability of the product.

Examples: Departmental stores, Super markets etc.

Immediate Consumption:

The outlets in this route are those which require stocks on a daily basis. The

stocks of products in these outlets are not stored for future use instead, are

exhausted on the same day and might run a little into the next day i.e. the

products are consumed at a fast pace.

Examples: Small sized bars and restaurants, educational institutions etc.

General:

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Under this route, all the outlets that come in a particular area or an area along

with its neighboring areas are catered to. The consumption period is not taken

into consideration in this particular route.

VOLUME

There are four types of outlets according to the volume of sales of the outlet:

CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

Hindustan Coca-Cola Beverages Private Limited has a wide and well-managed

network of salesmen appointed for taking up the responsibility of distribution

of products to diverse parts of the cities. The distribution channels are

constructed in such a way that the demand of customers is fulfilled at the right

place and the right time when they need it.

A typical distribution chain at Hindustan Coca-Cola Beverages Private Limited

would be:

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The customers of the Company are divided into different categories and

different routes, and every salesman is assigned to one particular route, which

is to be followed by him on a daily basis. A detailed and well-organized

distribution system contributes to the efficiency of the salesmen. It also leads to

low costs, higher sales and higher efficiency thereby leading to higher profits to

the firm.

SWOT ANALYSIS

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QUALITY

Golden Peacock National Quality Award 2004 - Coca-Cola India Division

President, Mr. Sanjiv Gupta received the Golden Peacock National Quality

Award 2004 along with the Coca-Cola team at the 15th World congress on

Total Quality in Mumbai on January 14, 2005.

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 practice and marketplace

conditions.

In our ingredients 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

security, 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, quality is our highest business objective and our enduring obligations.

The Coca-Cola Quality System Everyone who works for or with coca

cola is empowered and expected to maintain the highest standards of quality in

products, processes and relationship. 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

standards ISO 9001. It also incorporates Hazards Analysis Critical Control

Point System.

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Chapter -3 Theoretical Framework

(a) Topic related concepts

(b) Review of Literature

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Theoretical Framework:MARKETING

It is a process by which One identifies the needs and wants of the people. One determines and creates a product/service to meet the needs

and wants. [PRODUCT] One determines a way of taking the product/service to the market

place. [PLACE] One determines the way of communicating the product to the

market place. [PROMOTIONS] One determines the value for the product.[PRICE]. One determines the people, who have needs/ wants. [PEOPLE]

and then creating a transaction for exchanging the product for a value.And thus creating a satisfaction to the buyer's needs/wants.

TERMS to understand

1. Product/Service means a product or service or idea to satisfy the people’s needs / wants.2. Needs mean when a person feels deprived of something.3. Wants mean when a person’s need is formed / shaped by personality, culture, and knowledge.4.Value means the benefits that the customer gains from owning and using the product and the cost of the product. Satisfaction means the extent to which a product’s perceived performance matches a buyer’s expectation.6. Exchange means the act of obtaining a needed/ wanted object by offering something in return.7.Transactions mean trade off between a buyer seller that involves an exchange at agreed conditions.

Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably. It encompasses market research, pricing, promotion, distribution, customer care, your brand image and much more.

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FMCG Industry:

A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA:Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (Other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged food stuff, and house hold accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. The Indian FMCG sector is an important contributor to the country’s GDP. The FMCG sector is the fourth largest sector of Indian economy. The FMCG market is estimated to treble from its current figure in the coming decade. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of $13.1 billion. It has a 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 $11.6 billion in 2003 to $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 $28 billion of investment in the food-processing industry. In this year when almost all the stocks have been tumbled heavily on the Dalal Street, the one sector which completely outperformed the market is FMCG. During last 52 weeks the SENSEX has lost by around 53%, while BSE FMCG has just lost by below 10%. Sensex witnessed strong bull market journey with almost 7 fold gains from 3000 in 2003 to 21000 in 2008, the FMCG did not match the Index equivalently but managed to follow the trend by almost 3.5 times gain for the same period. Now in a bear market scenario, the FMCG is bucking the trend which is a big sigh of relief for investors. Hence we believe FMCG is strong and defensive sector and one should consider this sector for his portfolio and allocate some portion for it. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones.

32

Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner.Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular, March)

BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

Since the early 1990’s Coca-Cola Corporation and PepsiCo have been

combating on what is known as the “Beverage Battlefield” in India. Today

India is one of the most sought after countries for foreign investments because

of their continually growing market opportunities. However during Coca-Cola

and Pepsi’s attempts to broaden their global consumer bases both companies

encountered several obstructions on their pursuits of conquering the Indian soft

drink market.

The Indian Beverage Market

India’s one billion people, growing middle class, and low per capita

consumption of soft drinks made it a highly contested prize in the global CSD

market in the early twenty-first century. Ten percentage of the country’s

population lived in urban areas or large cities and drank ten bottles of soda per

year while the vast remainder lived in rural areas, villages, and small towns

where annual per capita consumption was less than four bottles. Coke and

Pepsi dominated the market and together had a consolidated market share

above 95%. While soft drinks were once considered products only for the

affluent, by 2003 91% of sales were made to the lower, middle and upper

33

middle classes. Soft drink sales in India grew 76% between 1998and 2002,

from 5,670 million bottles to over 10,000million and were expected to grow at

least 10% per year through 2012.28 In spite of this growth, annual per capita

consumption was only 6 bottles versus 17in Pakistan, 73 in Thailand, 173 in

the Philippines and800 in the United States. With its large population and low

consumption, the rural market represented a significant opportunity for

penetration and a critical battleground for market dominance.

In 2001, Coca-Cola recognized that to compete with traditional refreshments

including lemon water, green coconut water, fruit juices, tea, and lassi,

competitive pricing was essential. In response, Coke launched a smaller bottle

priced at almost 50% of the traditional package.

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:

1. Alcoholic, non-alcoholic and sports beverages 2. Natural and Synthetic beverages

3. In-home consumption and out of home on premises consumption.

4. Age wise segmentation i.e. beverages for kids, for adults and for senior citizens

5. Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.

Classification of Beverages

34

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:

1. The quality and the consistency of beverages needs to be enhanced so

that consumers are satisfied and they enjoy consuming beverages.

2. 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.

3. 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.

4. Communication should be relevant and trendy so that consumers are

able to find an appeal to go out, purchase and consumer.

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.

35

(a) Topic related conceptsChannel of Distribution:

Means used to transfer merchandise from the manufacturer to the end user.

Intermediaries in the channel are called middlemen. Those who actually take

title to the merchandise and resell the goods are merchant middlemen. Those

who act as Broker but do not take title are agent middlemen. Merchant

middlemen include wholesalers and retailers. Agent middlemen include

Manufacturer's Representatives, brokers, and sales agents.

Whether these exchange processes occur between manufacturers and their

suppliers, retailers and consumers, or in some other buyer-seller relationship,

marketing channels offer an important way to build competitive advantages in

today's global marketplace. This is so for two major reasons:

Distribution strategy lies at the core of all successful market entry and

expansion strategies. The globalization of manufacturing and marketing

requires the development of exchange relationships to govern the

movement of goods and services.

New technologies are creating real-time (parallel) information exchange

and reducing cycle times and inventories. Take as an example Dell

Computer, which produces on-command, customized computers to

satisfy individual customer preferences. At the same time, Dell is able to

align its need for material inputs (such as chips) with customer demand

36

for its computers. Dell uses just-in-time production capabilities. Internet-

based organizations now compete vigorously with traditional suppliers,

manufacturers, wholesalers, and retailers.

Marketing channels always emerge from the demands of a marketplace.

However, markets and their needs are always changing. It's true, then, that

marketing channels operate in a state of continuous evolution and

transformation. Channels of distribution must constantly adapt in response to

changes in the global marketplace.

This new selling orientation inspired the development of new intermediaries as

manufacturers sought new ways to expand market coverage to an increasingly

mobile population. The selling orientation required that more intimate access

be established to a now more diversified marketplace. In response, wholesale

and retail intermediaries evolved to reach consumers living in rural areas,

newly emerging suburbs and densely populated urban centers.

Relationship marketing is driven by two principles having particular relevance

to marketing channel strategy:

Long-term, ongoing relationships between channel members are cost-

effective. (Attracting new customers costs more than ten times more

than retaining existing customers.)

The interactive dialogue between providers and users of goods and

services is based on mutual trust.

37

The Role of Intermediaries:

This progression from a production to a relationship orientation allowed many

new channel intermediaries to emerge because they created new customer

values. Intermediaries provide many utilities to customers.

. Two principal tasks associated with the sorting function:

Categorizing. At some point in every channel, large amounts of

heterogeneous supplies have to be converted into smaller homogeneous

categories.

Breaking bulk. Producers want to produce in bulk quantities. Thus, it is

necessary for intermediaries to break homogeneous lots into smaller

units.

The role intermediaries play in building customer confidence is their most

overlooked function. Several types of risks are associated with exchanges in

channels of distribution, including need uncertainty, market uncertainty, and

transaction uncertainty. Intermediaries create value by reducing these risks.

COKE PRODUCTS IN INDIA:

1. Coca-cola

2. Thumps Up

3. Sprite

4. Fanta

38

5. Limca

6. Maaza

7. Kinley

8. Minute Maid

Out of which

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

products

and

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

purchased by the Coca-Cola Co.

STRATA”S OF COCA-COLA Co. INDIA

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

1. North2. South3. Central

CEO

NORTH SOUTH CENTRAL

Note: Each strata/region has a Regional Vice President

39

DIVISION OF THE SOUTH INDIA FOR COCA-COLA INDIA:

SOUTH

(REGIONAL VICE PRESIDENT)

ANDRAPRADESH CHENNAI KERALA

KARNATAKA

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

ORGANIZATION’S SALES CHART

AREA GENERAL MANAGER

GENERAL SALES MANAGER

SALES MANAGER

ASSOCIATE SALES MANAGER

AREA SALES MANAGER

SENIOR SALES EXECUTIVE

EXECUTIVE

SALES OFFICER

TRAINEE SALES OFFICER

40

RURAL SALES PROMOTER / MARKET DEVELOPERS

DISTRIBUTION CHANNEL OF COCA-COLA PRODUCTS

BOTTLING PLANT

DEPOT

DISTRIBUTOR

RETAILERS

CONSUMERS

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

1. ACCOUNTS

2. LOGISTICS

3. SALES

4. HUMAN RESOURCE

5. MARKETING

6. QUALITY CONTROL

41

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 VISAKHAPATNAM:

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 approx. 200 each

42

Liquid value

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 where in 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

43

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 behaviour 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.

DETAILS OF RED OUTLETS:

The Red outlets are divided as:

1. BRONZE

2. SILVER

44

3. GOLD

4. DIAMOND

The Basis for the above division is as follows

1. Bronze outlets are those outlets who sell less

than 299 cases a Year.

2. Silver outlets are those outlets who sell 300

cases to 499 cases a Year.

3. Gold outlets are those outlets who sell 500 cases

to 799 cases a Year.

4. Diamond outlets are those outlets that sell 800

and above cases a Year.

45

REVIEW OF LITETURE:

LITRATURE 1

OPERATION STRATEGIES FOR COCA-COLA VS PEPSI COMPANIES TO ATTRACT THEIR CUSTOMERS Mojtaba Saeidinia Candidate of MBA, Management and Science University, Faculty of Management, Malaysia E-mail: [email protected] Mehrdad Salehi Candidate of MBA, Management and science university, Faculty of Management, Malaysia E-mail: [email protected]

LITRATURE 2

@Lithe Coca-Cola Company versus PepsiCo, Inc.Andy BergUfuoma OmosebiIntermediate Accounting III ACC30519 November, 2011

Coca Cola and Pepsi are the two most popular and widely recognized beverage brands in the United States. Pepsi and Coca Cola contrast each other on their taste, its associated colors and themes, and ingredients. Even the pension plans and funding status are a competitive comparison.

LITRATURE 3

Coca cola and Pepsi: A comparative study ofPension plans, investment and Employment preferenceApril Oaks-BrunsonMs. Brenda AdamsIntermediate Accounting IIIFebruary, 18, 2011

46

mailto:[email protected]

Chapter – 4 Analysis of Study

47

2. Type of Outlet

Table:

OPTIONS NUMBER OF RESPONDENTS

Pan Shop 47

Home Foods & sweets 22

Kirana & Retail Stores 56

Other’s 25

Figure:

48

Interpretation:

In this survey, different types of outlets’ were covered in which there are about 35% Kirana & Retail Stores, 31% Pan Shops, Home Foods & Sweets of 15%.

3. Nature of the Outlets is

Table:


Coca – Cola 85

PepsiCo 53

Shared 12

Figure:

49

Interpretation:

Through this Survey, Majority of the Outlets are having Coca – Cola i.e. about 57% and Remaining 35% is of PepsiCo’s, 8% is shared.

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

Table:


Good 129

Bad 21

Figure:

50

Interpretation:

According to this 81% of the Outlets are having good relationship with the distributor/market developers/sales executives and vice – versa.

5. How many times a Coca - Cola distributor/ Sales executive visits your outlet per week

Table:


Once 2

Twice 148

Daily 0

51

Figure:

Interpretation:

92% of Coca - Cola distributor/sales Executives visits twice for every outlet per week.

6. How many times would you expect distributor vehicle to visit you

Table:


Once 0

Twice 150

Daily 0

52

Figure:

Interpretation:

As per Rules of the company, Every Distributor Must Visit Outlet Twice per week.

7. How many times a PepsiCo’s distributor/ Sales executive visits your outlet per week

Table:


Once 0

Twice 0

Daily 150

53

Figure:

Interpretation:

100% of PepsiCo’s distributor/ Sales Executive visits Daily for every outlet per week.

8. Are coke’s product delivered in time

Table:


Yes 150

No 0

Figure:

54

Interpretation:

According to this 100% of the retailers responded yes in terms of satisfaction in delivery & 0% feel not.

9. Retailer’s are satisfied with the supply of coke during each delivery

Table:


Yes 146

No 4

Figure:

55

Interpretation:


10. Retailers are not satisfied with the supply of coke during each delivery

Table:


Improper Products delivery 148

Improper Billing System 0

Others 2

56

Figure:

Interpretation:

According to this 99% of the Retailers are not satisfied with the supply of coke during each delivery because of Improper Products Delivery

11. No. Of cases sales per week are

Table:


0 – 5 Cases 121

6 – 10 Cases 14

10 Above 15

57

Figure:

Interpretation:

According to this the maximum retailer’s sales per week (No. of Cases) is 81% i.e. up to 5 Cases & the minimum sales per week of the retailer’s is 9% i.e. 6 - 10 cases per week.

12. The Factors makes the Retailers to sell PEPSI in the outlets

Table:


Brand Name 2

Executives Relationship 10

Customers demand 3

58

Margin Benefits 85

Figure:

Interpretation:

From the Survey we came to know that about 85% of the outlets are selling PepsiCo products due to margin Benefits and 10% are due to loyalty and relationship

13. products of Coca- cola which is mostly demanded by consumers in Retail Stores

Table:


59

Coca – Cola 3

Thumps up 78

Sprite 9

Limca 35

Maaza 13

Fanta 12

Figure:

Interpretation:

According to the survey Thumps up which is consumed mostly by the consumers i.e. 52%; which is followed by Limca, Sprite, Maaza and Fanta.

14. products of PepsiCo which is mostly demanded by consumers in Retail Stores

Table:


Pepsi 24

60

Mountain Dew 12

Diet Pepsi 4

7 up 37

Miranda 73

Figure:

Interpretation:

According to the survey Miranda up which is consumed mostly by the consumers i.e. 48%; which is followed by 7 up, Pepsi, Mountain Dew and Diet Pepsi

15. Retailers view in regards to quality as well as quantity

Table:


61

Yes in terms of quality 101

No in terms of quality 20

Yes in terms of quantity 23

No in terms of quantity 6

Figure:

Inference:

According to this 67% of the retailers responded yes in terms of quality & 14% feel not. 15% Yes in terms of quantity & 4% no.

16. Rating for Coca cola & Pepsi service

Table:

62

OPTIONS NO. OF RESPONDENTS(COCA COLA)

NO. OF RESPONDENTS(PEPSI)

Excellent 46 22

Good 16 37

Satisfactory 32 32

Bad 6 9

Figure:

Inference:

According to this most of the retailers are 32% satisfied with coca cola & 32% with Pepsi. 9% of them rated bad for Pepsi & 6% for Coca cola. 46% preferred Excellent as Coke & 22% to Pepsi. And 16% good for Pepsi & 37% for Coca cola

17. Are you informing about the reviewed Discount’s on Coke products

Table:

OPTIONS NO. OF RESPONDENTS

63

Yes 121

No 29

Figure:

Intrepretation:

According to this information about the reviewed Discount’s on Coke products are reviewing to Customer’s which is given highest preference given by the retailers i.e. 96%. And vice-Versa is 4%.

18. Choosing a product of a particular Brand by retailers according to the

options.

Table:

64

OPTIONS NO. OF RESPONDENTS(COCA COLA)

Taste 24

Customer Service 14

Health 4

Convenience 16

Speed 8

Location 13

Atmosphere 4

Variety 14

Price 3

Figure:

Intrepretation:

According to this Taste is the important factor which is given highest preference given by the retailers i.e. 24%. And lowest is to Price which is 3%.

19. Which Brand has a wide range?

Table:

65


Coca-Cola 100

PepsiCo 0

Other’s 0

Figure:

Intrepretation:

According to this Coca-cola Brand has a wide range which the highest is given by the retailers i.e. 100%.

20. Most of the Remarks received from the Customers’ i.e. Outlets are

Table:

66


Fridge demands & repairs’

11

No Complaints 135

service has to Improve

4

Figure:

Interpretation:

From the survey, most of the Customers’ are satisfied with the service &

having no complaints i.e. about 90%, some Outlets are having minor issues

like Fridge Demands & repairs’ i.e. 7%, and service has to improve is 3%.

67

Chapter – 5 Summary of Findings and Suggestions

Bibliography*

Annexure

Findings from the survey:

In this survey, different types of outlets’ were covered in which there are about 35% Kirana & Retail Stores, 31% Pan Shops, Home Foods & Sweets of 15%.

68

Majority of the Outlets are having Coca – Cola i.e. about 57% and Remaining 35% is of PepsiCo’s, 8% is shared.

81% of the Outlets are having good relationship with the distributor/market developers/sales executives and vice – versa.

92% of Coca - Cola distributor/sales Executives visits twice for every outlet per week.

100% of PepsiCo’s distributor/ Sales Executive visits Daily for every outlet per week.


According to this 99% of the Retailers are not satisfied with the supply of coke during each delivery because of Improper Products Delivery

The maximum retailer’s sales per week (No. of Cases) is 81% i.e. up to 5 Cases & the minimum sales per week of the retailer’s is 9% i.e. 6 - 10 cases per week.

about 85% of the outlets are selling PepsiCo products due to margin Benefits and 10% are due to loyalty and relationship

According to the survey Thumps up which is consumed mostly by the consumers i.e. 52%; which is followed by Limca, Sprite, Maaza and Fanta.

According to the survey Miranda up which is consumed mostly by the consumers i.e. 48%; which is followed by 7 up, Pepsi, Mountain Dew and Diet Pepsi

According to this 67% of the retailers responded yes in terms of quality & 14% feel not. 15% Yes in terms of quantity & 4% no.

The retailers are 32% satisfied with coca cola & 32% with Pepsi. 9% of them rated bad for Pepsi & 6% for Coca cola. 46% preferred Excellent as Coke & 22% to Pepsi. And 16% good for Pepsi & 37% for Coca cola

According to this information about the reviewed Discount’s on Coke products are reviewing to Customer’s which is given highest preference given by the retailers i.e. 96%. And vice-Versa is 4%.

Taste is the important factor which is given highest preference given by the retailers i.e. 24%. And lowest is to Price which is 3%.

Coca-cola Brand has a wide range which the highest is given by the retailers i.e. 100%.

most of the Customers’ are satisfied with the service & having no

complaints i.e. about 90%, some Outlets are having minor issues like

Fridge Demands & repairs’ i.e. 7%, and service has to improve is 3%.

Suggestion:

69

Consumer prefers Coca cola Brands more than that of Pepsi because of

its wide range and its taste. Good taste is the major factor, which

influence to buy a soft drink. Therefore company should try to retain its

taste.

Retailers are satisfied with sale of Coca cola but they also expect some

benefits like repairs charges, cooler charges, gifts and improved taste.

So, they can sell more.

This has been observed that major of retailers are happy with delivery at

right time, credit facilities and commission, Coupons.

Coca – Cola Drink is observed as less sale product in the market, In

order to improve its condition improvements in taste has to be made.

Some of the areas which are located in Hill top areas like Himayanth

Nagar etc (Malkapuram – B.c road market ) where trucks are not

suitable for delivery, auto carriers are to be used to increase market

share.

Sizes’ & Price’s are changing continuously which leads to confusion in

Consumers and customers. This must be taken care by changing

occasionallty but not continuously.

Now-a-days most of the consumers’ prefer pet bottles. So introduce a

new pet bottle in between 200ml to 250ml into the market with more or

less same price by removing Glass Bottles periodically.

CONCLUSION:

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

70

Soft drink industry because if the product is not available on time the consumer

Will switch on to other brands and the company will loose its market share and

Hence an effective distribution channel is the need of this industry. The

Distribution channel of Coca Cola Company is effective

It is true to any extent that the customer is in a state of confusion than comfort.

Due to the mind boggling advertising. Strategies used by all the brands,

consumer choice have increased numerously. Still consumer is the king holds

its highest value. Although there is a neck competition with Pepsi, Coca - Cola

had emerged as the strongest brand.

The factors influencing while decision making in consuming soft drinks in

Vishakhapatnam are the taste of product, Brand name and advertisements,

celebrities that influence the consumer attitude to a large extent. There is

greater market potential for Coca cola Products in the city.

BIBLIOGRAPHY

71

Frederick Allen. Secret Formula: How Brilliant Marketing and Relentless Salesmanship Made Coca-Cola the Best-Known Product in the World. New York: HarperCollins. 1994. 500pp.

Michael Blanding. The Coke Machine: The Dirty Truth Behind the World's Favorite Soft Drink. Penguin. 2010. 375pp.

Elizabeth Candler Graham; Ralph Roberts. The Real Ones: Four Generations of the First Family of Coca-Cola. Barricade Books. 1992. 344pp.

David Greising. I'd like the World to Buy a Coke: the Life and Leadership of Roberto Goizueta. Somerset, NJ: John Wiley & Sons. 1998. 334pp.

Constance L. Hays. The Real Thing: Truth and Power at the Coca-Cola Company. Random House. 2004. 398pp.

QUESTIONAIRE FOR RETAILERS

1. Name and Address ………………………………………………………

2. Type of Outlet ………………………………………………………….

72

3. What is the nature of outlet

a) Coke b) Pepsi c) Shared

if ‘B’ Why

a) Supply problem of Coke b) Any other problem

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

a) Good b) Bad

5. How many times a distributor visits your outlet per week

a) Once b) twice c)daily

6. How many times would you expect distributor vehicle to visit you


7. How many times a PepsiCo’s distributor/ Sales executive visits your outlet per week


8. Are coke’s product delivered in time

a) Yes b) No

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

a) Yes b) No

10. If No then Y??

a) Improper products delivery b) Improper Billing system

c) others…….

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

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

12. What Factors makes the Retailers to sell PEPSI in their outlets?

a) Brand Name b) Executive Relationship c) customer demand d) Margin & other Benefits

73

13. Which product of Coca- cola is mostly demanded by consumers in Retail Stores?

a) Coca-cola b) Thumps up c) Sprite

d) Fanta e) Limca f) Maaza

14. Which product of PepsiCo is mostly demanded by consumers in Retail Stores?

a) Pepsi b) Mountain Dew c) Diet Pepsi

d) 7 Up e) Miranda

15. Do you feel you are getting what you paid for in regards to quality as well as quantity?

a) Yes in terms of quality e) bothb) Not in terms of qualityc) Yes in terms of quantityd) Not in terms of quantity

16. How do you rate company service?

Coca cola Excellent Good Satisfactory BadPepsi Excellent Good Satisfactory BadOthers(Mention) Excellent Good Satisfactory Bad

17. Are you informing about the reviewed Discount’s on Coke products?

a) Yes b) No

18. How important are each of the following when choosing a product of a particular Brand.

No. of RespondentsTasteCustomer ServiceHealthConvenienceSpeed

74

LocationAtmosphereVarietyPrice

19. Which Brand has a wide range?

a) Coca cola b) Pepsi c) Others (mention)

20. Remarks ……………………………………………………………….

75

coke report

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