final copy summer project

MARKETING

“To enhance the RED Standards in the assigned Territory”

Submitted to- Submitted by-Prof. Rakesh Gupta Alok Kumar Singh Faculty , Marketing FT-09-711IILM GSM Greater Noida

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DECLARATION FORM

I hereby declare that the Project work entitled “TO ENHANCE THE RED STANDARDS IN THE

GIVEN TERRITORY” submitted by me for the Summer Internship during the Post Graduate

Diploma in Management Program to Institute for Integrated Learning in Management,

Greater Noida is my own original work and has not been submitted earlier either to IILM GSM

or to any other Institution for the fulfillment of the requirement for any course of study. I also

declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this

report from any earlier / other work done by me or others.

Place :

Date : Signature of Student

Name of Student : Alok Kumar Singh

Address : 113C,

Neha Apartments,

Sector Pie,

Greater Noida.

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ACKNOWLEDGEMENT

I would like to thank my Mr. Tanay Sanyal , without whom an internship with, Hindustan Coca-

Cola Beverages Private Limited (HCCBPL) would not have been possible. I am grateful to him

for having taken time off his busy schedule and spoken to the concerned person to get me this

internship. I would like to convey my gratitude to Prof. Rakesh Gupta, Faculty Marketing, IILM

GSM , without whom my internship would not have been possible. I am grateful to him for

having taken time off his busy schedule and spoken to me regarding project and other learnings.

I express my gratitude to the Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for

having given me an opportunity to work with them and make the best out of my internship. I

thank my trainer Mr. Sushil Patel, Capability development Executive, Hindustan coca-cola

beverages private limited, for having trained me and constantly guided and supported me

throughout the training period. My heartfelt gratitude also goes out to the my Sales team leader

Mr.Pramod Singh , Sales team leader and Market developers namely, Nilesh Singh, Nikhil

Sir ,Jitendra Verma Sir at HCCBPL for having co-operated with me and guided me throughout

two months of my internship period. I also wish to pay my gratitude to all my friends with

whom I did my training in the company. I thank my institute, IILM Graduate school of business ,

Greater Noida ,having given me this opportunity to put to practice, the theoretical knowledge

that I imparted from the program. I thank the Faculty mentor, Mr. Rakesh Gupta for having

guided and supported me through the course of the internship. I take this opportunity to thank my

parents and friends who have been with me and offered emotional strength and moral support. At

last but by no means the least I would like to thanks the almighty for making all these things

possible.

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EXECUTIVE SUMMARY

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,

Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer

and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400

beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,

distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John

Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-

colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by

carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five

cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by

accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme

that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda

fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was

only when a strong bottling system developed that Coca-Cola became the world-famous brand it

is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than

reveal its formula to the Government and reduce its equity stake as required under the Foreign

Regulation Act (FERA) which governed the operations of foreign companies in India. In the new

liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through

its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. The

main objective of my training was to enhance the RED(Right Execution Daily) Standards of the

given territory. I had been fortunate enough to get this kind of direct and performance based

project objective for my summer training. I had worked hard with heart and soul to improve the

scenario in my territory. I was able to bring RED Scores of 47 and 36 which is not a good

performance and I owe a full responsibility of these results. As a matter of learning I have been

able to learn lots of intricacies in sales and distribution of beverage major Coca-Cola .I had been

able to open around 100 HE outlets. Moreover I have been successful in raising the 15 bottom

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outlets into high RED scoring outlets. I have also given few suggestion for improvement in my

territory.

TABLE OF CONTENTS

CHAPTER INTRODUCTION……………………………………………………

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1.1: A brief insight- The FMCG Industry in India……………………………………..8

1.2: A brief insight- The Beverage Industry in India……………………………….10

Figure 1: Beverage Industry in India………………………………….10

CHAPTER 2: THE COCA-COLA

COMPANY……………………………………12

2.1:

History………………………………………………………………………………………..12

2.2: History of Bottling………………………………………………………………………..14

2.3: Manifesto for Growth……………………………………………………………………17

2.3.1:

Values…………………………………………………………………………………………17

2.3.2:

Mission………………………………………………………………………………………..18

2.3.3: Vision for Sustainable Growth………………………………………………………..18

Figure 2: Vision for Sustainable Growth…………………………………………19

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CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE

LIMITED…………………………………………………………………..……20

3.1: About the Company…………………………………………………………………….20

Figure 3: Location of COBO, FOBO and Contract packers………..21

3.2: Manifesto for Growth……………………………………………………………………22

3.2.1: Values……………………………………………………………………………22

3.2.2: Vision for Sustainable Growth……………………………………………..22

3.2.3: Mission…………………………………………………………………………..23

3.2.4: Quality Policy…………………………………………………………………….23

3.3: Organization Structure of Coca-Cola India………………………………………24

Figure 4: Organization Structure of Coca-Cola India……………….24

Figure 5: Organization Structure of Coca-Cola India……………….25

3.4: Organization Structure of the Sales Department in HCCBPL……………..26

Figure 6: Organization Structure of the Sales Department…….26

3.5: Manufacturing Unit of HCCBPL………………………………………………………27

Figure 7: Chain followed from Manufacture to Distribution…….27

3.6: Manufacturing process at HCCBPL………………………………………………..28

Figure 8: Manufacturing process…………………………………………28

3.7: Business Plan model at HCCBPL…………………………………………………….29

Figure 9: Business Plan model at HCCBPL……………………………29

3.8: Distribution Network…………………………………………………………………….30

3.8.1: Distribution Routes…………………………………………………………….30

3.8.2: Distribution System……………………………………………………………31

3.8.3: Departments involved in the Distribution process………………….32

3.9: Competitors to HCCBPL………………………………………………………………33

CHAPTER 4:

PRODUCTS…………………………………………………………34

5.1: Packaging details and pricing details…………………………………………..36

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CHAPTER 5: PROJECT: To enhance the RED Standards in the given

territory………………………………………………………………………….37

5.1: objective and scope…………………………………………………………..37

5.2 : RED standards , PITA model and components &parameters……………….38

5.3: PROJECT TITLE……………………………………………………………44

5.4: previous results and analysis………………………………………………....45

5.5: problems……………………………………………………………………45

5.6: Action plan………………………………………………………………….46

5.7: Results after action plan…………………………………………………….47

5.8: Achievements……………………………………………………………….48

CHAPTER 6:CONCLUSION…………………………………………………50

CHAPTER 7: RECOMMENDATIONS………………………………………51

CHAPTER 8: LEARNINGS……………………………………………………52

APPENDIX………………………………………………………………………53

REFERENCES…………………….……………………………………………68

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CHAPTER 1: INTRODUCTION

_______________________________________________

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,

Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer

and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400

beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,

distributors, fountain retailers and fountain wholesalers. The Company’s beverage products

comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-

drink powder products. In addition to this, it also produces and markets sports drinks, tea and

coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating

in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has

successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a

small amount of money- a billion times a day.”

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and

pervasive production and distribution system in the world. More than anything, that system is

dedicated to people working long and hard to sell the products manufactured by the Company.

This unique worldwide system has made The Coca-Cola Company the world’s premier soft-

drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any

other consumer product, has brought pleasure to thirsty consumers around the globe. For more

than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of

people every day.

The Company aims at increasing shareowner value over time. It accomplishes this by working

with its business partners to deliver satisfaction and value to consumers through a worldwide

system of superior brands and services, thus increasing brand equity on a global basis. They aim

at managing their business well with people who are strongly committed to the Company values

and culture and providing an appropriately controlled environment, to meet business goals and

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objectives. The associates of this Company jointly take responsibility to ensure compliance with

the framework of policies and protect the Company’s assets and resources whilst limiting

business risks.

1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are

products that have a quick turnover and relatively low cost. Consumers generally put less

thought into the purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s. Many players had

been facing severe problems on account of increased competition from small and regional

players and from slow growth across its various product categories. As a result, most of the

companies were forced to revamp their product, marketing, distribution and customer service

strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly.

With the liberalization and growth of the Indian economy, the Indian customer witnessed an

increasing exposure to new domestic and foreign products through different media, such as

television and the Internet. Apart from this, social changes such as increase in the number of

nuclear families and the growing number of working couples resulting in increased spending

power also contributed to the increase in the Indian consumers' personal consumption. The

realization of the customer's growing awareness and the need to meet changing requirements and

preferences on account of changing lifestyles required the FMCG producing companies to

formulate customer-centric strategies. These changes had a positive impact, leading to the rapid

growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and

qualified manpower also boosted the growth of the organized retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of the

FMCG industry by focusing on rural markets, direct distribution, creating new product,

distribution and service formats. The FMCG sector also received a boost by government led

initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the

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country that witnessed firms moving away from outsourcing to manufacturing by investing in the

zones.

Though the absolute profit made on FMCG products is relatively small, they generally sell in

large numbers and so the cumulative profit on such products can be large. Unlike some

industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass

layoffs every time the economy starts to dip. A person may put off buying a car but he will not

put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner irrespective of global

market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.

The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian

Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is

the South Indian region. 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)

The FMCG sector consists of the following categories:

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries,

Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe

care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico,

Dabur and Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household

cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito

repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever

Limited, Nirma and Ricket Colman.

Branded and Packaged foods and beverages- Health beverages, Soft drinks,

Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates,

Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat,

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Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players

being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur

Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

In India, beverages form an important part of the lives of people. It is an industry, in which the

players constantly innovate, in order to come up with better products to gain more consumers

and satisfy the existing consumers.

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right

product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages

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BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

Natural and Synthetic beverages

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

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

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

low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be observed that

consumers perceive beverages in two different ways i.e. beverages are a luxury and that

beverages have to be consumed occasionally. These two perceptions are the biggest challenges

faced by the beverage industry. In order to leverage the beverage industry, it is important to

address this issue so as to encourage regular consumption as well as and to make the industry

more affordable.

Four strong strategic elements to increase consumption of the products of the beverage industry

in India are:

The quality and the consistency of beverages needs to be enhanced so that consumers are

satisfied and they enjoy consuming beverages.

The credibility and trust needs to be built so that there is a very strong and safe feeling

that the consumers have while consuming the beverages.

Consumer education is a must to bring out benefits of beverage consumption whether in

terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant

to the category.

Communication should be relevant and trendy so that consumers are able to find an

appeal to go out, purchase and consume.

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The beverage market has still to achieve greater penetration and also a wider spread of

distribution. It is important to look at the entire beverage market, as a big opportunity, for brand

and sales growth in turn to add up to the overall growth of the food and beverage industry in the

economy.

CHAPTER 2: THE COCA-COLA COMPANY

_______________________________________________

2.1: HISTORY

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in

Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his

backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s

Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water

was teamed with the new syrup, whether by accident or otherwise, producing a drink that was

proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola

is enjoyed.

Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned

“Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested

that “the two Cs would look well in advertising.” The first newspaper ad for Coca-Cola soon

appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda

fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings,

with the suggestions “Drink” added to inform passersby that the new beverage was for soda

fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton

sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color

associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent

$73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He

gradually sold portions of his business to various partners and, just prior to his death in 1888,

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sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the

year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and

control of the Coca-Cola business. Within four years, his merchandising flair had helped expand

consumption of Coca-Cola to every state and territory after which he liquidated his

pharmaceutical business and focused his full attention on the soft drink. With his brother, John S.

Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr. Candler

formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,”

used in the marketplace since 1886, was registered in the United States Patent Office on January

31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta

was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles,

California, the following year. In 1895, three years after The Coca-Cola Company’s

incorporation, Mr. Candler announced in his annual report to share owners that “Coca-Cola is

now drunk in every state and territory in the United States.”

As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building

erected in 1898 was the first headquarters building devoted exclusively to the production of

syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold

to a group of investors for $25 million. Robert W. Woodruff became the President of the

Company in the year 1923 and his more than sixty years of leadership took the business to

unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and

valued brands around the world.

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2.2: HISTORY OF BOTTLING

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early

growth was impressive, but it was only when a strong bottling system developed that Coca-Cola

became the world-famous brand it is today.

YEAR WISE HISTORY OF BOTTLING:

Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-

Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell,

using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler,

who owned the Company. Candler thanked him but took no action. One of his nephews already

had urged that Coca-Cola be bottled, but Candler focused on fountain sales.

Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around

bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead

obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one

dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.

Years 1900-1909: Rapid growth

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The three pioneer bottlers divided the country into territories and sold bottling rights to local

entrepreneurs. Their efforts were boosted by major progress in bottling technology, which

improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were

operating, most of them family-owned businesses. Some were open only during hot-weather

months when demand was high.

Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A

group representing the Company and bottlers asked glass manufacturers to offer ideas for a

distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won

enthusiastic approval. The Contour Bottle became one of the few packages ever granted

trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the

world.

In the 1920s: Bottling overtakes fountain sales

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas

and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years

later, open-top metal coolers became the forerunners of automated vending machines. By the end

of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

In the 1920s and 1930s: International expansion

Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company

began a major push to establish bottling operations outside the U.S. Plants were opened in

France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War

II began, Coca-Cola was being bottled in 44 countries.

In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This

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followed an urgent request for bottling equipment and materials from General Eisenhower's base

in North Africa. Many of these war-time plants were later converted to civilian use, permanently

enlarging the bottling system and accelerating the growth of the Company's worldwide business.

In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5

ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also

introduced, becoming generally available in 1960.

In the 1960s: Introduction of new brands

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello

were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde

and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer

preferences in local markets around the world.

In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of The Coca-Cola Company

merged and evolved into international mega chains. Such customers required a new approach. In

response, many small and medium-size bottlers consolidated to better serve giant international

customers. The Company encouraged and invested in a number of bottler consolidations to

assure that its largest bottling partners would have capacity to lead the system in working with

global retailers.

In the 1990s: New and growing markets

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Political and economic changes opened vast markets that were closed or underdeveloped for

decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in

Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling

facilities in Africa.

21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This

heritage serves the Company well today as consumers seek brands that honor local identity and

the distinctiveness of local markets. As was true a century ago, strong locally based relationships

between Coca-Cola bottlers, customers and communities are the foundation on which the entire

business grows.

2.3: MANIFESTO FOR GROWTH

2.3.1: VALUES:

Coca-Cola is guided by shared values that both the employees as individuals and the Company

will live by; the values being:

LEADERSHIP: The courage to shape a better future

PASSION: Committed in heart and mind

INTEGRITY: Be real

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ACCOUNTABILITY: If it is to be, it’s up to me

COLLABORATION: Leverage collective genius

INNOVATION: Seek, imagine, create, delight

QUALITY: What we do, we do well

2.3.2: 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.

2.3.3: VISION FOR SUSTAINABLE GROWTH

PROFIT: Maximizing return to shareowners while being mindful of our overall

responsibilities.

PEOPLE: Being a great place to work where people are inspired to be the best they can

be.

PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and

satisfy peoples’ Desires and needs.

PARTNERS: Nurturing a winning network of partners and building mutual loyalty.

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PLANET: Being a responsible global citizen that makes a difference.

FIGURE 2: VISION FOR SUSTAINABLE GROWTH

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CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES

PRIVATE LIMITED (HCCBPL)

_______________________________________________

3.1: ABOUT THE COMPANY

Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its

formula to the Government and reduce its equity stake as required under the Foreign Regulation

Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered

the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An

agreement with the Parle Group gave the Company instant ownership of the top soft drink brands

of the nation. With access to 53 of Parle’s plants and a well set bottling network, an excellent

base for rapid introduction of the Company’s International brands was formed. The Coca-Cola

Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were

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

brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products

became a part of range of products of the Coca-Cola Company.

In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into

India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola

Company. However, this was based on numerous commitments and stipulations which the

21

Company agreed to implement in due course. One such major commitment was that, the

Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident

shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations,

27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations

(FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range

of products for the company. It also has a supporting distribution network consisting of 700,000

retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian

market are made locally, with help of technology and skills within the Company. The complexity

of the Indian market is reflected in the distribution fleet which includes different modes of

distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow

alleyways of Indian cities and trademarked tricycles and pushcarts.

“Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life ho to

aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This resulted in a 37%

growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the

per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml

returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market

accounted for over 80% of India’s new Coca-Cola drinkers. At Coca-Cola, they have a long

standing belief that everyone who touches their business should benefit, thereby inducing them

to uphold these values, enabling the Company to achieve success, recognition and loyalty

worldwide.

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FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

3.2: MANIFESTO FOR GROWTH

3.2.1: VALUES

The values that the employees in the Company are expected to keep up to and work by regularly

are as follows:

LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy

and zeal, to deliver outstanding results.

INNOVATION: To continuously strive for progress and reach the next level of

excellence in everything we do.

PASSION: To be deeply committed and display drive and energy in the quest to deliver

outstanding performance.

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COBOFOBOCONTRACT PACKAGING

TEAMWORK: To unite for greater strength and work collectively as a group towards

the achievement of common goals.

OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the

lowest appropriate level.

ACCOUNTABILITY: To be individually and transparently accountable to our

colleagues for delivering agreed targets and goals.

3.2.2: VISION FOR SUSTAINABLE GROWTH

To provide exceptional strategic leadership in the Coca-Cola India System-resulting in consumer

and customer preference and loyalty, through Coca-Cola’s commitment to them, and in a highly

profitable Coca-Cola Corporate branded beverages system.

3.2.3: MISSION

To create consumer products, services and communications, customer service and bottling

system strategies, processes and tools in order to create competitive advantage and deliver

superior value to;

Consumers as a superior beverage experience

Consumers as an opportunity to grow profits through the use of finished drinks

24

Bottlers as an opportunity to grow profits in volumes

Bottlers as a trademark enhancement and positive economic value added

Suppliers as an opportunity to make reasonable profits when creating real value-added in

an environment of system-wide team work, flexible business system and continuous

improvement

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

3.2.4: QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds and actions by

continually improving our processes…Every time.”

3.3: ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA

25

FIGURE 4: ORGANIZATION STRUCTURE IN COCA-COLA, INIDA

26

FIGURE 5: ORGANIZATION STRUCTURE IN COCA-COLA, INDIA

3.4: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN

HCCBPL:

27

FIGURE 6: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

3.5: MANUFACTURING UNIT OF HCCBPL

The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest plant and one of the

bottling operations owned by the company. The Plant has one PET line which has the capacity of

yielding 209 bottles, per minute, two RGB (Returnable glass bottles) lines which yields 600

bottles per minute each and one Juice line which yield 155 bottles per minute. It caters to the

whole of South Karnataka through a network of more than 80 distributors. There are three depots

in Bangalore; North Depot, East Depot and Mega Depot.

28

FIGURE 7: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

3.6: MANUFACTURING PROCESS AT HCCBPL

29

Manufacturing Plant, Bidadi

Sales and Distribution Operations

Distributors

Outlets

Outlets

FIGURE 8: MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves the following steps:

Water is received from the River Cauvery and it passes through the water treatment plant,

further passing through the sand filter and the activated carbon filter, so as to attain pure

cleansed water.

In the syrup room, the concentrate received from another bottling plant situated at Pune,

is blended with the sugar syrup

Once both the water and the final syrup are ready, they are both mixed together and sent

to the carbonator section where Carbon Dioxide is added to the mixture to form the final

product.

30

On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected

and washed for the purpose of filling in the final product in it. This step does not take

place in the PET bottle line as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of

PET bottles), labeled and cased in order to be sent into the warehouse for distribution.

3.7: BUSINESS PLAN MODEL AT HCCBPL

FIGURE 9: BUSINESS PLAN MODEL

3.8: DISTRIBUTION NETWORK

31

Coca-Cola India division,

Gurgaon

Regional BottlersCOBO/FOBO

Customers

Manufactures Concentrate, Beverage

base and Syrup

Manufactures finished Bottles/Cans/Fountain

Syrup

Consumers

HCCBPL has a wide and well managed network of salesmen appointed for taking up the

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

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

right time when it is needed by them.

A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail

Stock --- Retail Shelf --- Consumer

The customers of the Company are divided into different categories and different routes, and

every salesman is assigned to one particular route, which is to be followed by him on a daily

basis. 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.

3.8.1: DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as follows:

Key Accounts: The customers in this category collectively contribute a large chunk of

the total sales of the Company. It basically consists of organizations that buy large

quantities of a product in one single transaction. The Company provides goods to these

customers on credit, payments being made by them after a certain period of time i.e.

either a month of half a month.

Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

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

32

up by them so as to avoid shortage or non-availability of the product.

Examples: Departmental stores, Super markets etc.

Immediate Consumption: The outlets in this route are those which require stocks on a

daily basis. The stocks of products in these outlets are not stored for future use instead,

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

are consumed at a fast pace.

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

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

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

consideration in this particular route.

3.8.2: DISTRIBUTION SYSTEM

Direct distribution: In direct distribution, the bottling unit or the bottler partner has

direct control over the activities of sales, delivery, and merchandising and local account

management at the store level.

Indirect distribution: In indirect distribution, an organization which is not part of the

Coca-Cola system has control on one or more of the distribution elements (Sales,

delivery, merchandising and local account management)

Merchandising: Merchandising means communication with the consumer at the point of

purchase to convey product benefit, value and Quality. Sales people and delivery

personnel both have this responsibility. In certain locations special teams who go into

business locations to specifically merchandise our products.

3.8.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

33

The Distribution process mainly consists of three departments:

Distribution Department: It appoints distributors and establishes a distribution network,

processes approved sale orders and prepares invoices, arranges logistics and ship

products, co-ordinates with distributors for collections and monitors distribution stocks

and their set-up.

Finance Department: It checks credit limits and approves sales orders in compliance

with the credit policy followed by the firm, records collections from distributors,

periodically reconciles outstanding balances from distributors, obtains balance

confirmation from distributors and follows up outstanding balances.

Shipping or Warehousing Department: It dispatches goods as per approved by order,

ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out

area and updates warehouse stock records in a timely manner.

3.10: COMPETITORS TO HCCBPL

34

The competitors to the products of the company mainly lie in the non-alcoholic beverage

industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company

never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks

include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage;

PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water.

PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola

hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the

rest belongs to Pepsi.

Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals

with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has

been introduced into the market by Nestle provides a considerable amount of competition

to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it

is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk

products also have become substitutes to the products of the company due to growing

health awareness among people.

Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever

since times and people have laid all their trust in the Company and the products of the

Company. Apart from food products, Dabur has introduced into the market Real Juice

which is packaged fresh fruit juice. These products give a strong competition to Maaza

and the latest product Minute Maid Pulpy Orange.

CHAPTER 4: PRODUCTS

35

_______________________________________________

The Coca-Cola Company offers a wide range of products to the customers including beverages,

fruit juices and bottled mineral water. The Company is always looking to innovate and come up

with, either complete new products or new ways to bottle or pack the existing drinks. The Coca-

Cola Company has a wide range of products out of which the following products are marketed

by HCCBPL:

In the Cola Section:

In the Lemon section:

In the Orange section:

In the Juice section:

36

In Nimbu(lemon based drink) section:

In the Soda Water and Bottled Mineral Water section:

37

4.1: PACKAGING AND PRICING DETAILS

Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can,(Rs 450)200 ml(Rs168) and

300 ml(Rs264) returnable glass bottles; 500+100 ml free (Rs 516), 1.5 litre (Rs 360 ) and

2 litre PET bottles of Limca and Fanta while 2.2 litre PET bottle of Thumsup and Sprite.

(Rs 506)

Diet Coke: 330 ml can(Rs 450) and 500 ml PET bottle(Rs 516)

Maaza: 200 ml (Rs 192)and 250 ml Returnable Glass Bottle; 500+100 ml(Rs 624) and

1litre+200 ml free (Rs 576) PET bottles and the newly introduced 200 ml Tetra Pack ( Rs

282)

Minute Maid Pulpy Orange: 400 ml (Rs 432) and 1 litre PET bottles(Rs 540)

Minute Maid nimbu fresh :400ml(Rs 330)

Kinley water: 1 litre bottle.(Rs 124)

Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free (Rs 266)

_______________________________________________

38

Chapter 5- Project -To enhance the RED(Right Execution Daily)

standards in the given territory.

5.1: Objectives-To enhance the RED(Right Execution Daily) standards of the given territory

by-

Understanding the different components of RED (Right execution daily)score.

To understand and improve the activation elements in each outlets of the territory.

To understand and improve the availability elements in each outlets of the territory.

To maintain the Visi-cooler standards and maintain the 100% purity and 100% charging

in Visi-cooler.

To work upon difficult outlets and increase the RED score of that outlet.

To increase the sales by working on horizontal expansion and vertical expansion.

Scope –

To increase the RED(Right Execution Daily) score of the given territory.

TO understand the limited authority of Market developer and try to improve the RED

score.

TO help in increase in sales by fulfilling the needs of the retailers at the right time.

39

5:2 :RED: A RIGHT EXECUTION DAILY

CONCEPT OF RED: RED (Right Execution Daily) is defined as a tool to measure the

performance of the distributor in the outlet by setting up some standard or parameter of

execution.

This standard monitors, at the individual outlet level, how well company implement and

maintain merchandising standards. Furthermore, it helps in identify opportunities to make

immediate improvements that support growth for our customers and company. RED is just one

part of company’s efforts to enhance revenue growth opportunities by optimizing the

combination of brand, package and price for each consumption occasion.

Coca cola company believes that its success depends on their ability to connect with consumer

by providing them with a wide variety of choices to meet their desire, needs and lifestyles

choices, company success further depends on the ability of their people by execute effectively

every day

Why RED Standards is used?

Coca-cola is a world leader in beverages and has a tradition of implementing unique

system of execution for its sales force at the point of sale.

This will help company to directly connect with Consumer by providing them with a

wide variety of choices to meet their desire, needs and lifestyles choices.

This standard helps at the individual outlet level, how well company implement and

maintain merchandising standards.

RED is just one part of company’s efforts to enhance revenue growth opportunities by

optimizing the combination of brand, package and price for each consumption occasion.

This set ups the global standards for execution of certain parameters for each retailers and

sales force.

PITA( Population, Incidence, Transaction, Average profit) MODEL-

40

The Coca-Cola company has made a model to convert the effective execution into sales

revenue and subsequently into profit. This model is known as PITA MODEL

Which is explain in a equation as follows:

Gross Profit(Rs)=Population *Incidence*Transaction (Ltr)*Average profit (RS per

Ltr)

Where P= Population which means numbers shoppers or consumers in given universe .

Coca cola attract the population by executing the following activities.

Bringing the cooler at the entrance.

Fixing the standee, sign at the entrance.

Fixing the combo Board at the entrance.

I=Incidence which means % of population that buy our product.

How Coca-Cola induce for the incident?

By putting cooler in prime position.

By keeping the cooler pure & clean.

By doing Rack Display.

By fixing combo Board.

By doing Table activation.

Counter Top Display.

T=Transaction which means amount in volume bought per transaction.

41

How Coca-Cola increases the transaction?

By rack Display, By cooler top display, By large PET.

A = Average profit in value per transaction.

How Coca-Cola increases the average profit per transaction?

By higher margins pack

By mobile PET availability.

By juice availability.

Inception of RED standards- RED is the survey method that company started in 2007. It adds

value to customers and consumers through “Excellence in Execution” at the point of sale.

For the survey of RED, Company has hired the A.C Nielson company. One of the best survey

company in India.. The survey gets done on monthly basis.

A monthly report on RED is send to Hindustan Coca- Cola Beverages Private Limited.

Components and Parameters of RED standards-

Markets can be segmented along 3 line-outlet volume, locality income and channel cluster.

Segmentation on the basis of channel cluster-

A) E & D Type 1

B) E & D Type 2

C) Grocery

D) Convenience.

A) E & D Type 1 : –

42

Outlets selling items to eat which are being consumed primarily standing in the outlet or being

taken away for future consumption. DOES NOT HAVE A PLACE TO SIT. It includes

Bakery/Sweet shops/Juice corner/Tea Shops.

B) E & D Type 2 :-

Outlets selling items to eat which are being cooked /made within the outlet with possibility of

consuming those products within the outlet. THE OUTLET SHOULD HAVE PLACE TO SIT.

It includes Sit down restaurants /Bars/ Dhabas/ cafes etc.

C) Convenience : –

Convenience outlets ate those outlets where people visit regularly for various purposes, generally

accessible locally like stationary shop, S.T.D – Booth, Pan Shop and general Store.

D) Grocery : –

Outlets primarily engaged in retailing of food & various household items. It includes Grocers

(outlets dealing mainly in grains, provisions, spices, edible oils, vanaspati oil etc.) and general

stores (outlets selling items of day-to-day requirements and stocking a variety of branded

products).

Based on Volume Pattern-

According to the volume sale in the outlets the company has adopted a unique policy of

categorizing the outlets in four different segments such as:

DIAMOND

GOLD

SILVER

BRONZE

DIAMOND

Those outlets, which give an annual sale of Coca - Cola products more than 800 case.

GOLD

Those outlets, which give an annual sale of Coca - Cola products between 500 to 799 Case..

SILVER

Those outlets, which give an annual sale of Coca - Cola products between 200 to 499 case.

BRONZE

Those outlets, Which give an annual sale of Coca':-Cola products less than 200 carats

43

Parameters of RED(Right execution daily) Standards-

There are 3 basic parameters of RED standards-

1. Visi-cooler standards – They are set to help execution standards for customer delight.

This standards are meant for Cooler specifications ,shelf order, brand order, purity and

charging.

2. Availability standards- They are set to cater different customers with different needs.

With different combinations of channel cluster, categories and locality income class this

availability standards changes to meet the demands of the retailers.

3. Activation standards- They are set to activate the customer response at the outlet. With

this help company tries to activate the customer for purchase of our product at the outlets

5.3: Project Objective- To enhance the RED(Right Execution Daily)

Standards in the given territory .

44

Territory- A sales territory is defined as a group of present and potential customers assigned

to any individual salesperson, a group of sales person , a branch, a dealer, a distributor, or a

marketing organization at a given point of time.

Geographically my territory spans across 25 sq Km, following the road route from Nariya to

D.L.W (east to west) and Amraa By-pass to Kakarmatta(south to north)

Total number of present and potential outlets according to the survey done in May-10 during

training period is almost 180.

Total number of RED outlet is around 132.

5.4:Previous Results and its analysis -

Previous results for my territory- The graph shows the results of RED score for

past three months of my territory.

5.5: Problems in the territory –

My territory was continuously showing below 45 RED Score which was below

the Average RED scores of the other territories of the region.

45

This territory was in list of poor performing Areas.

The Scene on the field was more pathetic and discouraging than papers.

There was very discouraging image of company in the market regarding the

services and grievances redress system.

Vehicle was not reaching in the market and if reaching they were too late.

Very few shops were activated and there numbers were meager.

No motivational elements were given to retailers.

Proper availability of products was huge problems.

Unprofessional behaviors of Salesman and drivers were also a concern.

Failure in timely delivery of services was a big problem.

Retailers were completely allured by schemes and dicounts of Pepsi and contrary

to that they were not getting any thing from Coca-Cola.

At some of the important positioned outlets, there was no Coca-Cola which led to

huge loss in sales and image.

Purity of Visi-cooler was a dream in my territory.

Some of the rogue retailers were misusing our visi-cooler.

At some outlets, our delivery vehicle never visited in this calendar year.

Disappointment in Retailers with our services was common scene.

Insufficient resources given to us were also a hindrance such as my area was

twice the size of other two areas of my agency even though only vehicle was

employed there.

We can’t reach an outlet not before 2 days because of large area thus execution

standards tends to degrade with time.

5.6: Action Plan to improve the scenario in the territory-

We sat with the Sales team leader and under the guidance of Mr. Sushil Patel,

Capability development Executive , we plan our action.

46

We decided to implement following mechanism to improve the scenario in the

territory-

Strict adherence to the discipline work style amongst all to improve the

RED Score.

Strictly following the PJP (permanent journey plan )and beat plan.

Providing best services available by giving them full range of products,

according to availability in agency.

Start giving regular schemes to allure the retailers and gain their

confidence.

Regularly visiting each shop of PJP and talking to them regarding their

problems which raised there confidence in us.

By taking each outlet as different case with different challenges we set

different tactics to deal with them and satisfy them .

Certain outlets were uncomfortable with opening of their Visi-cooler at

peak hours or in hot afternoons since this will have a negative impact on

their sales. They were special treatment and I visited their shops after

20:00 hrs so that I have ample time to make Visi-cooler pure and as per

standards.

Beat plan should be flexible to meet the daily changes.

Second shift in product delivery was made a custom to address the needs

of maximum retailers as my area was large and we very having just one

vehicle.

5.7: Results after implementing the action plan-

Following graph shows the RED scores obtained in the month of May; these

results are on the basis of RED tracker filled by MD on the field.

47

Following graph shows the comparative view of RED Score as filled in RED tracker for the

month of June-

5.8: Achievements-

We have been successful in maintaining the good service in my territory. This helps in

regaining the market to some extent.

We have been able to increase RED Scores in a significantly which was appreciated by

everyone and was a success for the area.

Almost each shops has been activated and each outlet in PJP plan was executed as per

standards.

The general attitude of retailers changed positively.

Availability was made to every shop up to standard.

The general attitude of Salesman and drivers too changed and they started turning up in

the market between 09.00Am to 09.30 Am.

Our territory starts showing highest sales amongst other territories of agency , almost

three times to others.

48

Following graph shows the results of RED Score for the month of May and June by the survey of

third party and comparison with previous months-

RED Score For the months of May and June has rise significantly.

Difference in RED Score filled in RED tracker and RED Score result of the survey by the third

party-

Difference is mainly due to variation that comes in outlet‘s Visi-cooler due to gap in

execution day and Survey day. Execution standards tend to degrade with time and sales.

RED Score filled in RED tracker is obtained from execution results of outlets that fall in

PJP plan of that day and survey is done of sample that constitutes the whole area.

There are 20% of outlets (50% of bottom outlets)given in survey list don’t exist now thus

the main reason for reduction in RED score. Thus list needs to be updated now.

Lack of support and guidance from my MD.

49

Unavailability of whole Range of products and unprofessional behaviors of Salesman and

Driver.

Chapter 6 : Conclusions –

_______________________________________________

50

Considering the fact that nothing is perfect in this world. Every individual is bound to

make mistake at some point or the other..

I had made a positive change (from 45 to 67) in enhancing the RED Standards of the

assigned territory.

I admit that there is much more chance of increase in RED Scores.

There was very limited support and guidance from my MD.

Sufficient powers were not there in my hands to negotiate and make my own marketing

strategies accordingly.

Distributors provide low schemes as compared to company so; distributers should be

convinced to pass the incentives to the retailers so that they are motivated to promote this

brand.

I had a very valuable learning experience in Sales and distribution of beverages major,

these experience are far valuable than book knowledge.

I have been able to expand 50 HE outlets in my territory .

I have been able to raise 15 outlets of bottom outlets to high RED Score outlets in last 3

weeks of June.

Rectification of RED outlets list should be done so that closed outlets don’t decrease the

RED Scores.

_ Chapter 7 : Recommendations -

51

Alluring schemes must be made available to the retailers since these schemes helps in

motivating them.

Company should take care of grievances redress so that retailers don’t have loss in sales

due to any fault in Visi-cooler.

Adequate resources should be made available since the territory size is double as

comparison to others.

Outlets which are showing consistently good results should be motivated by giving

regular discounts from the company.

Special care should be given to outlets at important locations and they should be

motivated regularly and if they are not having our Visi-cooler they should be horizontally

expanded. For example-Heer sagar Sweets at Bhikaripur crossing, Patel juice corner at

Chitaipur crossing etc.

Order booking system should be encouraged by giving retailers good schemes and

discounts if they are giving orders in advance and in bulk.

Employees should be encouraged with good incentives on the basis of performance and

work ethics.

Special Recommendations-

Company can pay the electricity bills of retailers at important locations and good

performance.

MDs should be transfer from one area to another on half yearly or annual basis so that

one individual’s relationship with retailers doesn’t hamper the sales and RED Scores.

Special care should be taken in transferring the schemes and discounts to retailers.

Chapter 8: LEARNINGS

52

Every thing in this world is made to utilize properly but it should be reach at the proper person or

to the proper utilized areas. Otherwise the value added to those things became in vein.

As there is a proverb that,

“Far From Eye, Far From Mind”

Thus marketing role play a very important role in achieving the objectives of a company.

Undoubtedly, value utility is created by the manufacture of product or service but time and place

utilities are created by marketing role. According to Peter Drucker, “both the market and the

distribution channels are often more crucial than the product”. They are primary: the product is

secondary. In an economy like that of India, where marginal shortages can lead to disproportion

distortion in prices, a dependable and efficient distribution system is very much essential. The

distribution system creates a value added to almost all products.

From my study in the past two months what I learned is:

“A service on time is the best way to increase the sales in a particular area”

To convince the retailer we have to listen to their problems and solve them as early as possible.

For this we have to spend time at the outlet and note all the short comings. The hard and fast rule

can’t be followed when we are working in the field some time the strategies have to be changed

according to the situation. While negotiating a deal some times we have to provide some outlets

the extra benefits while others not. So the marketing concepts that we have learned during MBA

are all applied in field to increase the sales.

Chapter 9:Appendix-2010 RED Norms

-AS GIVEN IN RED TRACKER

53

Visi cooler

standards

Norms Points given Categories

E&D type 1and

convenience

E&D type

2

Grocery

High and medium

income class

Low income class.

D G S B D G S B

Presence of

standard cooler

5

Points allotted are same every class and

category.

Presence of

cooler at prime

position

5

100% purity 10

Brand order

and shelf order

compliant

5

Total 25

RED norms as given in RED Tracker

Products Categories

E&D type 1and convenience

54

Availability

standards

only

High and medium

income class

Low income class.

D G S B D G S B

Sparkling soft

drink (SSD)

200ml

20 20 26 30 25 25 30 30

300 ml rgb

Xpress pack

350 ml

5 5

600 ml 14 14 14 15 15 15 15 15

200/250 ml

juice

5 5 5 5 5 5 5 5

Juice mobile 5 5 5 5 5 5 5 5

Fridge pack 4 4 5 5 5

Juice large PET

Large PET

2ltr/2,25 ltr

Water mobile

500 ml

2 2

Water mobile

500 ml and 1

ltr

Chilled facing

of RGB

Total 60 60 60 60 60 60 60 60


Products Categories

E&D type 2 only

55

Availability

standards

High and medium

income class

Low income class.

D G S B D G S B

Sparkling soft

drink (SSD)

200ml

300 ml rgb 30 30 30 34 34 34 34 34

Xpress pack

350 ml

600 ml

200/250 ml

juice

9 9 9 9 9 9 9 9

Juice mobile

Fridge pack

Juice large PET

Large PET

2ltr/2,25 ltr

Water mobile

500 ml

Water mobile

500 ml and 1

ltr

5 5 5

Chilled facing

of RGB

6 6 6 6 6 6 6 6

Total 50 50 50 50 50 50 50 50


Products Categories

Grocery only

High and medium Low income class.

56

Availability

standards

income class

D G S B D G S B

Sparkling soft

drink (SSD)

200ml

15 15 15 15 20 20 20 20

300 ml rgb

Xpress pack

350 ml

600 ml 12 12 12 12 12 12 12 12

200/250 ml

juice

4 4 5 5 5 5 5 5

Juice mobile 3 3 5 5 5 5 5 5

Fridge pack 10 10 10 10 10 10 15 15

Juice large PET 3 3

Large PET

2ltr/2,25 ltr

10 10 10 10 5 5

Water mobile

500 ml

Water mobile

500 ml and 1

ltr

5 5 5

Chilled facing

of RGB

3 3 3 3 3 3 3 3

Total 60 60 60 60 60 60 60 60


Norms Categories

Grocery only

High and medium

income class

Low income class.

57

Activation

standards

D G S B D G S B

GSB/Flex board road

standee/flange

3 3 3 3 3 3 3 3

Price communication 5 5 5 5 5 5 5 5

Shelf/cut/case/cooler

top display

Combo shorts-standee

or on the wall

Menu card with KO

beverages menu.

Menu board

Rack as per standard 1 1 1 1 1 1 1 1

Rack :pure and charged 6 6 6 6 6 6 6 6

Total 15 15 15 15 15 15 15 15

Gross total 100 100 100 100 100 100 100 100


Norms Categories

E &D type 2 only

High and medium

income class

Low income class.

58

Activation

standards

D G S B D G S B

GSB/Flex board road

standee/flange

5 5 5 5 5 5 5 5



top display

5 5 5 5


or on the wall

10 10 10 10

Menu card with KO

beverages menu.

5 5 5 5

Menu board 10 10 10 10

Rack as per standard

Rack :pure and charged

Total 25 25 25 25 25 25 25 25

Gross total 100 100 100 100 100 100 100 100


Norms Categories

E &D type 2 only

High and medium

income class

Low income class.

59

Activation

standards

D G S B D G S B

GSB/Flex board road

standee/flange

5 5 5 5 5 5 5 5



top display

5 5 5 5


or on the wall

10 10 10 10

Menu card with KO

beverages menu.

5 5 5 5

Menu board 10 10 10 10



Total 25 25 25 25 25 25 25 25

Gross total 100 100 100 100 100 100 100 100


Norms Categories

E &D type 1 only

High and medium

income class

Low income class.

60

Activation

standards

D G S B D G S B

GSB/Flex board road

standee/flange

5 5 5 5 5 5 5 5



top display

5 5 5 5 5 5 5 5


or on the wall

Menu card with KO

beverages menu.

Menu board



Total 15 15 15 15 15 15 15 15

Gross total 100 100 100 100 100 100 100 100

Note- There is a provision of awarding 10 bonus points and 5 penalty points on the basis of

previous RED score.

Execution standards includes Availability and activation standards which according to

outlet channel and category and volume class.

For any kind of outlets the brand order will be COLOJ-K, which means Cola

+Lemon+Orange+Juice+Kinley

1. Channel Grocery

Category SKU High/medium class Low income class

Diamond

RGB Cola +3+1 Cola +3+1

Mobile pack 600ml Cola+3 Cola +3

61

Fridge pack 1.2 ltr Cola+3 Cola +3

Family pack 2/2.2ltr Cola +2 Cola +2

Note: Minimum 3 facings required for lead cola, lead flavor and Maaza. For all units Thumsup

will be the lead cola

Activation standards-

GSB/Flex board with prominent drinking shot.

Price communication.

3 tier rack with header, must be 50% charged and 100% pure.

2. Channel Grocery


Gold


Mobile pack 600ml Cola+2 Cola +2


Family pack 2/2.2ltr Cola +2 Cola +2






3 tier rack with header, must be 50% charged and 100% pure.

3. Channel Grocery


Silver


Mobile pack 600ml Cola+1+1 Cola +1+1


Family pack 2/2.2ltr Cola +1




Road standee/Flex board with prominent drinking shot.

62


3 tier rack with header, must be 50% charged and 100% pure

4. Channel Grocery


Bronze


Mobile pack 600ml Cola+1+1 Cola +1+1


Family pack 2/2.2ltr Cola +1






1 tier rack with header, must be 50% charged and 100% pure

5. Channel E&D Type 1 & Convenience


Diamond

RGB 200ml Cola +3+1 Cola +3+1

Xpress pack Cola+2

Mobile pack 600ml Cola+3+Juice Cola +3+Juice


Water 500ml. Kinley and Bonaqua






Any one of the following-

I. Shelf/Cut display

63

II. Any rack must be 50% charged and 100% pure.

III. Pure Visi-cooler at prime position.



Gold


Xpress pack Cola+2

Mobile pack 600ml Cola+2+ Juice Cola +2+Juice


Water 500ml. kinley


will be the lead cola.




Any one of the following-Shelf/Cut display

I. Any rack must be 50% charged and 100% pure.

II. Pure Visi-cooler at prime position.



Silver


Xpress pack

Mobile pack 600ml Cola+1+ 1Juice Cola +1+1

Fridge pack 1.2 ltr Cola+1

Water 500ml.







64






Bronze


Xpress pack

Mobile pack 600ml Cola+1+ 1Juice Cola +1+1

Fridge pack 1.2 ltr

Water 500ml.










9. Channel E&D Type 2


Diamond

RGB 300ml/200ml

Juice

Cola +4+1 Cola +4+1

Xpress pack

Mobile pack 600ml

Fridge pack 1.2 ltr

Water 1l. Kinley and Bonaqua




65



Combo shots (standee on the wall)

Branded menu cards with KO beverages menu



Gold

RGB 300ml/200ml

Juice

Cola +3+1 Cola +3+1

Xpress pack

Mobile pack 600ml

Fridge pack 1.2 ltr







Combo shots (standee on the wall)

Branded menu cards with KO beverages menu



Silver

RGB 300ml/200ml

Juice

Cola +2+1 Cola +2+1

Xpress pack

Mobile pack 600ml

Fridge pack 1.2 ltr

66






Price communication

Shelf cut display/cooler top display/any rack 100% pure.

Branded menu board/Menu standee with KO beverages menu



Bronze

RGB 300ml/200ml

Juice

Cola +2+1 Cola +2+1

Xpress pack

Mobile pack 600ml

Fridge pack 1.2 ltr

Water 1l.






Shelf cut display/cooler top display/any rack 100% pure.

Branded menu board/Menu standee with KO beverages menu

67

CHAPTER 10: REFERENCES

INTERNET: www.cokeindia.comwww.coca-colaindia.comwww.oligopolywatch.comwww.superbrand.comwww.cocacola.comSearch engine – Google.

TEXT BOOK:Marketing Management –P.Kotler and KellerSales and distribution management- Tapan Panda and Sachdev The Marketing white book .-Business world.- Annual issue of 2009-2010

Company documents-

RED Tracker for the month of May and June.Sales Presenter Quarterly Magazine of the Company-March to May.GCC(Global customer care ) Form

68

http://www.superbrand.com/

http://www.oligopolywatch.com/

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

http://www.cokeindia.com/

final copy summer project

Documents