hindustan coca
TRANSCRIPT
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HINDUSTAN COCA-COLA BEVERAGES
PRIVATE LIMITED
A SUMMER TRAINING REPORT
VINEET BHAT
UNIV. ROLLNO: 2009MBE47
AS PART OF THE CIRRICULUM OF MASTERS PROGRAM IN
BUSINESS ADMINISTRATION,
SHRI MATA VAISHNO DEVI UNIVERSITY, KAKRIYAL, KATRA
ACKNOWLEDGEMENT
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I would like to thank my project guide Mr. Devender Sachdeva, ASM, Hindustan
Coca-Cola India, without whom an internship with, Hindustan Coca-Cola Beverages
Private Limited (HCCBPL) would not have been possible. I am grateful to him for
having taken time off his busy schedule and spoken to the concerned person to get
me this internship. I express my gratitude to the Hindustan Coca-Cola Beverages
Private Limited (HCCBPL) for having given me an opportunity to work with them and
make the best out of my internship. I thank my trainers, for having trained me and
constantly guided and supported me throughout the training period. My heartfelt
gratitude also goes out to the staff and employees at HCCBPL for having co-
operated with me and guided me throughout the one and a half months of my
internship period. I thank my School of Business Economics, College of
Management, Shri Mata Vaishno Devi University for having given me this
opportunity to put to practice, the theoretical knowledge that I imparted from the
program. I am also thankful to Mr. Sanjay Munshi, GSM, Mr. Sunil Shellay, Capability
Manager, Mr. Sanjay Kotwal, Team Leader and MDs 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.
INTRODUCTION
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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 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.
A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA
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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 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.
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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, 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
BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-Carbonated
Cola Non-Cola Non-Cola
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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
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.
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If the behavioral patterns of consumers in India are closely noticed, it could be
observed that consumers perceive beverages in two different ways i.e. beverages
are a luxury and that beverages have to be consumed occasionally. These two
perceptions are the biggest challenges faced by the beverage industry. In order to
leverage the beverage industry, it is important to address this issue so as to
encourage regular consumption as well as and to make the industry more
affordable.
Four strong strategic elements to increase consumption of the products of the
beverage industry in India are:
The quality and the consistency of beverages needs to be enhanced so that
consumers are satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and
safe feeling that the consumers have while consuming the beverages.
Consumer education is a must to bring out benefits of beverage consumption
whether in terms of health, taste, relaxation, stimulation, refreshment, well-
being or prestige relevant to the category.
Communication should be relevant and trendy so that consumers are able to
find an appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider
spread of distribution. It is important to look at the entire beverage market, as a big
opportunity, for brand and sales growth in turn to add up to the overall growth of
the food and beverage industry in the economy.
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THE COCA-COLA COMPANY
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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, 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
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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.
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.
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Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler
thanked him but took no action. One of his nephews already had urged that Coca-
Cola be bottled, but Candler focused on fountain sales.
Year 1899: The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could build a
business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas
and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most
of the United States for a sum of one dollar. A third Chattanooga lawyer, John T.
Lupton, soon joined their venture.
Years 1900-1909: Rapid growth
The three pioneer bottlers divided the country into territories and sold bottling
rights to local entrepreneurs. Their efforts were boosted by major progress in
bottling technology, which improved efficiency and product quality. By 1909, nearly
400 Coca-Cola bottling plants were operating, most of them family-owned
businesses. Some were open only during hot-weather months when demand was
high.
Year 1916: Birth of the Contour Bottle
Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with
imitators. A group representing the Company and bottlers asked glass
manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass
Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle
became one of the few packages ever granted trademark status by the U.S. Patent
Office. Today, it is one of the most recognized icons in the world.
In the 1920s: Bottling overtakes fountain sales
As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the
U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit
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starting in 1923. A few years later, open-top metal coolers became the forerunners
of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola
exceeded fountain sales.
In the 1920s and 1930s: International expansion
Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the
Company began a major push to establish bottling operations outside the U.S.
Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and
South Africa. By the time World War II began, Coca-Cola was being bottled in 44
countries.
In the 1940s: Post-war growth
During the war, 64 bottling plants were set up around the world to supply the
troops. This followed an urgent request for bottling equipment and materials from
General Eisenhower's base in North Africa. Many of these war-time plants were later
converted to civilian use, permanently enlarging the bottling system and
accelerating the growth of the Company's worldwide business.
In the 1950s: Packaging innovations
For the first time, consumers had choices of Coca-Cola package size and type-the
traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26
ounce versions. Cans were also introduced, becoming generally available in 1960.
In the 1960s: Introduction of new brands
Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and
Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke,
followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are
offered to meet consumer preferences in local markets around the world.
In the 1970s and 1980s: Consolidation to serve customers
Advancement in technology led to global economy, retail customers of The Coca-
Cola Company merged and evolved into international mega chains. Such customers
required a new approach. In response, many small and medium-size bottlers
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consolidated to better serve giant international customers. The Company
encouraged and invested in a number of bottler consolidations to assure that its
largest bottling partners would have capacity to lead the system in working with
global retailers.
In the 1990s: New and growing markets
Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company invested
heavily to build plants in Eastern Europe. As the century closed, more than $1.5
billion was committed to new bottling facilities in Africa.
21st Century: Coca-Cola today
The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as consumers seek
brands that honor local identity and the distinctiveness of local markets. As was
true a century ago, strong locally based relationships between Coca-Cola bottlers,
customers and communities are the foundation on which the entire business grows.
MANIFESTO FOR GROWTH
VALUES:
Coca-Cola is guided by shared values that both the employees as individuals and
the Company will live by; the values being:
LEADERSHIP: The courage to shape a better future
PASSION: Committed in heart and mind
INTEGRITY: Be real
ACCOUNTABILITY: If it is to be, it’s up to me
COLLABORATION: Leverage collective genius
INNOVATION: Seek, imagine, create, delight
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QUALITY: What we do, we do well
MISSION
To Refresh the World... In body, mind, and spirit
To Inspire Moments of Optimism... Through our brands and our actions
To Create Value and Make a Difference... Everywhere we engage.
VISION FOR SUSTAINABLE GROWTH
PROFIT: Maximizing return to shareowners while being mindful of our overall
responsibilities.
PEOPLE: Being a great place to work where people are inspired to be the
best they can be.
PORTFOLIO: Bringing to the world a portfolio of beverage brands that
anticipate and satisfy peoples’ Desires and needs.
PARTNERS: Nurturing a winning network of partners and building mutual
loyalty.
PLANET: Being a responsible
global citizen that makes a
difference.
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FIGURE 2: VISION FOR SUSTAINABLE GROWTH
HINDUSTAN COCA-COLA BEVERAGES
PRIVATE LIMITED (HCCBPL)
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ABOUT THE COMPANY
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather
than reveal its formula to the Government and reduce its equity stake as required
under the Foreign Regulation Act (FERA) which governed the operations of foreign
companies in India. Coca-Cola re-entered the Indian market on 26th October 1993
after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group
gave the Company instant ownership of the top soft drink brands of the nation. With
access to 53 of Parle’s plants and a well set bottling network, an excellent base for
rapid introduction of the Company’s International brands was formed. The Coca-
Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza,
which were floated by Parle, as these products had achieved a strong consumer
base and formed a strong brand image in Indian market during the re-entry of Coca-
Cola in 1993.Thus these products became a part of range of products of the Coca-
Cola Company.
In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-
entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm
of the Coca-Cola Company. However, this was based on numerous commitments
and stipulations which the Company agreed to implement in due course. One such
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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.
MANIFESTO FOR GROWTH
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.
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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.
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.
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.
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
Bottlers as an opportunity to grow profits in volumes
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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.
QUALITY POLICY
“To ensure customer delight, we commit to quality in our thoughts, deeds and
actions by continually improving our processes…Every time.”
SWOT ANALYSIS OF HCCBPL
STRENGTHS
DISTRIBUTION NETWORK: The Company has a strong and reliable
distribution network. The network is formed on the basis of the time of
consumption and the amount of sales yielded by a particular customer in one
transaction. It has a distribution network consisting of a number of efficient
salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet
includes different modes of distribution, from 10-tonne trucks to open-bay
three wheelers that can navigate through narrow alleyways of Indian cities
and trademarked tricycles and pushcarts.
STRONG BRANDS: The products produced and marketed by the Company
have a strong brand image. People all around the world recognize the brands
marketed by the Company. Strong brand names like Sprite, Fanta, Limca,
Thums Up and Maaza add up to the brand name of the Coca-Cola Company
as a whole. The red and white Coca-Cola is one of the very few things that
are recognized by people all over the world. Coca-Cola has been named the
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world's top brand for a fourth consecutive year in a survey by consultancy
Interbrand. It was estimated that the Coca-Cola brand was worth
$70.45billion. (http://news.bbc.co.uk/1/hi/business/4706275.stm)
LOW COST OF OPERATIONS: The production, marketing and distribution
systems are very efficient due to forward planning and maintenance of
consistency of operations which minimizes wastage of both time and
resources leads to lowering of costs.
WEAKNESSES
LOW EXPORT LEVELS: The brands produced by the company are brands
produced world wide thereby making the export levels very low. In India,
there exists a major controversy concerning pesticides and other harmful
chemicals in bottled products including Coca-Cola. In 2003, the Centre for
Science and Environment (CSE), a non-governmental organization in New
Delhi, said aerated waters produced by soft drinks manufacturers in India,
including multinational giants PepsiCo and Coca-Cola, contained toxins
including lindane, DDT, malathion and chlorpyrifos- pesticides that can
contribute to cancer and a breakdown of the immune system. Therefore,
people abroad, are apprehensive about Coca-Cola products from India.
SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND
ACHIEVE ECONOMIES OF SCALE: The Company’s operations are carried
out on a small scale and due to Government restrictions and ‘red-tapism’, the
Company finds it very difficult to invest in technological advancements and
achieve economies of scale.
OPPORTUNITIES
LARGE DOMESTIC MARKETS: The domestic market for the products of the
Company is very high as compared to any other soft drink manufacturer.
Coca-Cola India claims a 58 per cent share of the soft drinks market; this
includes a 42 per cent share of the cola market. Other products account for
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16 per cent market share, chiefly led by Limca. The company appointed
50,000 new outlets in the first two months of this year, as part of its plans to
cover one lakh outlets for the coming summer season and this also covered
3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage
market.
EXPORT POTENTIAL: The Company can come up with new products which
are not manufactured abroad, like Maaza etc and export them to foreign
nations. It can come up with strategies to eliminate apprehension from the
minds of the people towards the Coke products produced in India so that
there will be a considerable amount of exports and it is yet another
opportunity to broaden future prospects and cater to the global markets
rather than just domestic market.
HIGHER INCOME AMONG PEOPLE: Development of India as a whole has
lead to an increase in the per capita income thereby causing an increase in
disposable income. Unlike olden times, people now have the power of buying
goods of their choice without having to worry much about the flow of their
income. The beverage industry can take advantage of such a situation and
enhance their sales.
THREATS
IMPORTS: As India is developing at a fast pace, the per capita income has
increased over the years and a majority of the people are educated, the
export levels have gone high. People understand trade to a large extent and
the demand for foreign goods has increased over the years. If consumers
shift onto imported beverages rather than have beverages manufactured
within the country, it could pose a threat to the Indian beverage industry as a
whole in turn affecting the sales of the Company.
TAX AND REGULATORY SECTOR: The tax system in India is accompanied
by a variety of regulations at each stage on the consequence from production
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to consumption. When a license is issued, the production capacity is
mentioned on the license and every time the production capacity needs to be
increased, the license poses a problem. Renewing or updating a license every
now and then is difficult. Therefore, this can limit the growth of the Company
and pose problems.
SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it
is not without its problems: Low per capita disposable incomes that is half the
urban disposable income; large number of daily wage earners, acute
dependence on the vagaries of the monsoon; seasonal consumption linked to
harvests and festivals and special occasions; poor roads; power problems;
and inaccessibility to conventional advertising media. All these problems
might lead to a slowdown in the demand for the company’s products.
COMPETITORS TO HCCBPL
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
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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.
PRODUCTS
_______________________________________________
The Coca-Cola Company offers a wide range of products to the customers including
beverages, fruit juices and bottled mineral water. The Company is always looking to
innovate and come up with, either complete new products or new ways to bottle or
pack the existing drinks. The Coca-Cola Company has a wide range of products out
of which the following products are marketed by HCCBPL:
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In the Cola Section:
In the Lemon section:
In the Orange section:
In the Juice section:
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In the Soda Water and Bottled Mineral Water section:
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1. RATIONAL OF THE STUDY
Sales and distribution is an integral part of marketing. Here, Coca Cola the
leading brand in soft drinks worldwide. Coke has maintained its brand image
with high precision. The marketing strategy of Coke is very stringent than
others. The main features in their marketing by their offerings and its sales
and distribution. It’s my gratitude to work with Coca Cola company specially
in marketing department. I have been placed their in sales and distribution
department for my internship. The research work was not so easy as Coca
Cola is very strict in their marketing policy.
In the beginning the main reason for conducting this study was to know the
proper allocation of distribution to the suppliers and also to know about the
products sales.
Further, it is to understand the availability of the product and to check out
that there is the proper advertising of the product and also to know the
working condition of the visicooler provided by the company. Also to know
the various scheme provided by the Coca Cola is really applied in the market
or not. To compare the schemes with Pepsi products.
The study is done to understand the problem of the retailers, and
understanding the presale concept. Thus, these were the main reasons for
conducting this study.
2. RED (RIGHT EXECUTION DAILY)
OBJECTIVES OF STUDY
1. The main objective of this RED project is to increase the sales of the
company.
2. To advertise the various products of the company.
3. To find out the present sales status of ThumsUp, Coke, Sprite, Limca,
Fanta, maaza at the retail outlets in the area..
4. To collect data from retailers for the activation of new channels of
distribution.
5. To study the pre-sale concept of the coke.
6. To ensure the availability and visibility of the product.
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7. To analyze the effect of scheme.
SCOPE OF THE STUDY
1. By this study company can know its growth.
2. This study helps the company to know their actual position in the
market.
3. RED helps to find out the promotion activities of the company and help
to make relevant changes according to their rivalry company.
4. This study ensures the availability of the product in the market.
5. The study helps to fond out the problem of the counter and to find out
the requirement for more sales.
6. RED helps to maintain the outlets in a well designed way to attract the
consumers.
SIGNIFICANCE OF THE STUDY
1. This project is helpful to find out the sale trends of the coke products
and its
effect on consumer value and satisfaction.
2. This study provides an insight to the company that what kind of
strategy must be
adopted in order to increase the sales and satisfaction o the consumer.
3. This project directly deals with the interaction of different kind of
people.
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MY ROLE IN PROJECT “RED”
IMPLEMENTATION – First and foremost task for me was to implement the
project in
the given area with the support of MD’s (MARKET DEVELOPER). Various
norms for
different outlets had been fixed but their implementation was very
important. Different
areas were assigned to me in which I implemented RED and these areas are
further
visited by various higher officials of the organization.
I measured the performance of sales team and distributors (under
RED) in outlets with respect to all parameters of execution.
I did scoring on the scoring sheet.
The scoring sheet was provided on the basis of which scoring can be done.
Scoring is done out of 100 marks and they have been further divided in 3
components
1. VISI COOLER - 30 points
2. AVAILABILTY - 50 points
3. ACTIVATION – 20 points
MARKET AUDITING (TRACKING PERFORMANCE) – Tracking performance
of
the MD of corresponding area was also my responsibility. I had to score him
on fixed
norms (RED SCORING SHEET) and also give the feedback on his
performance.
FINDING LOOPHOLES – Finding loopholes in the system like absence of
coordination
between MD’s and SALES TEAM and report to higher officials (Mr. Sunil Shelly
and Mr. Sanjay Kotwal)
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BRAND CONTACT - I had to interact regularly with shopkeepers to know
their
problem and try to solve them. If I could solve them then I reported them to
my company
guide, else he suggested me the alternatives, and I also took out the orders
from retail
outlets and to check out the activation.
AVAILABILTY - I also need to give company weekly availability report of
various
brands.
BRANDS TAGLINE
ThumsUp - Taste the thunder
Cocacola - Open happiness
Sprite - Seedhi baat no bakwaas , clear hai
Limca - Fresh ho jao
Fanta - Go bite
Maaza – asli aam ka maza
MMNF—ghar jaisa nimbu pani
BRAND AMBASSDORS
ThumsUp -Akshay Kumar
Cocacola -Aamir Khan
Sprite -Shahrukh Khan
Fanta -Genelia D’souza
Limca –Hritisha Bhatt
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ABOUT BRANDS
THUMSUP
It is the leading brand of the company. It has cola flavor. ThumsUp is the
highest selling beverage brand of India. Mostly like by the youngsters
specially boys. The competitor of the brand on same category is Pepsi.
COCACOLA
This is the world’s most famous & old brand. This brand is specially liked by
teenagers & youngsters.
The competitor on the cola category is Pepsi.
SPRITE
This brand is the one of the fastest growing brand in the country. Sprite is
liked by all age groups & people. Jan 09 report of “The times of India” claims
sprite to be the second brand in sales after ThumsUp
Competitor : 7up & Mountain dew
LIMCA
Limca is cloudy lemon in flavor. This is very unique in this category .It has
white in
color.
Competitor : Mirinda Lemon
FANTA
Fanta has two flavors apple & orange. This is very popular drink among
females.
Competitor: Mirinda.
MAAZA
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This has mango flavor. Maaza is popular among children and women.
Competitor: Slice, frooti
MINUTE MAID pulpy orange
This is orange juice .This contains no sugar & added flavor .This is a family
drink.
Competitor : Tropicana
MINUTE MAID Nimbu Fresh
this is a lemon juice made from extracts of lemon a pure nimbu pani.
Competitor: Nimbooz, LMN
KINLEY
This comes in two variety-mineral water & soda. Mineral water is used by all
but soda is
commonly used for alcoholic purpose by adult people.
Competitor : Aquafina, Bisleri
ADVERTISING
Advertising is a non promotion of goods & services by sponsor who can identified andwho has paid for his communication. Their purpose of advertisement is to sell something goods or services,idea ,person or place.
BRAND AMBASSDORS & TV COMMERCIALS
COLA WAR (neck to neck)
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Bollywood rising stars Asin (Right) for PepsiCo’s Mirinda,Genelia D’souza (Left) for Coca-Cola’s Fanta
Tennis star Sania Mirza for Sprite
Bollywood star Aamir Khan for Coke
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Bollywood star Akshay kumar for ThumsUp
Bollywood superstar Shahrukh Khan new Brand Ambassador of Sprite
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Hrishita Bhatt with Limca
REVIEW OF LITERATURE
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RED CONCEPT
RED stands for Right Execution Daily. It is a survey method for the company
to know
their position in the market.
ABOUT RED
1. To check the availability of the visi cooler provided by the company to
the retail
outlets for their products.
2. To check the activation in various outlets.
3. To check the branding order of the various products in the cooler.
Survey has done in the four topics-
1. Impurity
2. Brand Order
3. Availability
4. Activation
IMPURITY
There should be no impurity in the visi cooler of the company. Impurity here refers to that brand which is presented in the visi cooler other than coke’s product. Therefore not other product of any other company may not be in the cooler.
BRAND ORDER
The company has given a brand order to the market developers to arrange the differentbrands in a specific order in the cooler. The order should be in such a way-
1. Thumsup2. Coca cola3. Sprite4. Limca5. Fanta6. Maaza7. Kinley8. Pet & Juice
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Pack Number of bottles in a case
200 ml 24
250 ml 24
300 ml 24
400 ml 24
600 ml 24
1 litre 12
1.2 litre 12
1.25 litre 12
2 litre 9
AVAILABILTY
Availability is done according the type of outlet. There are four type of outlet
mentioned
below. According to this market developer has to ensure the availability of
the products
in the particular outlet.
ACTIVATION
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Activation is important because it helps to boost the sales of the company. it
is done
through the Glow sign, Shelf display, flanges. Combo boards, Table tops .This
boards
usually gives to the E&D outlets .It helps to attract the customers. Rack with
header is
provided to the grocery stores.
Activation Elements
Market developer must ensure that all these activation elements must
available at all the outlets. Detail of activation elements must available at
GROCERY STORES:
1. WARM DISPLAY RACK
2. SHELF DISPLAY
SHELF DISPLAY
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DISPLAY OF RACK VISI
COOLER
OPTIONAL ELEMENTS:-
1. STANDEE
2. SIX MOBILE HANGER
3. VISI COOLER BRAND STRIP
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4. WARM DISPLAY RACK
5. TABLE TOP RACK
6. TENT CARD
TYPES OF OUTLETS
The company has divided their outlets on the basis of the following criteria-
Volume
Channel
Income group
1. VOLUME
Diamond 800 above 30 cases
Gold 500-799 20 cases
Silver 200-499 7/9 cases
Bronze 100-199 4/7 cases
2. CHANNEL
(A) GROCERY STORE
Grocery (customer profile): Store stocking a variety of regular uses
household items. The channels provide an opportunity for penetration as it
propels home consumption.It includes all kirana stores,juice , departmental
stores, supermarkets, provision stores etc.
Necessary Availability - 2 liter and 300ml
(B) EATING & DRINKING CHANNEL 1
Eating and Drinking Channel: Outlets range from the high-end restaurants to
the smaller dhabas. These outlets offer multiple opportunity to effect sales
as people usually order something to drink along with food. It includes
- Restaurants
- Bars and Pubs
- Dhabas
- Cafes
(C) EATING & DRINKING CHANNEL 2
It includes bakery, sweet shops, tea shops, soft drink shops and juice centre.
(D) CONVENIENCE CHANNEL
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Pan/bidi shops (customer profile) : This segment includes PAN BIDDI
outlets that
stock cigarettes, mint, confectionary. It covers STD/ISD phone booths, travel
channel etc. Small outlets that mainly sell 200ml or 300ml bottles. They may
also sell 600ml.
INCOME GROUP
According to the income group of the area-
Low- Those outlets where low income customer comes.
Medium- Those outlets where medium income customer comes.
High- Those outlets where high income customer comes.
Market Segmentation models
Visi-cooler position, display & Brand Order Compliance
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Under RED market developer has to ensure that shopkeeper must display allUnder RED market developer has to insure that shopkeeper must display all products.Display may be in the form of Shelf Display, Table Top Display etc. All products mustbe displayed in brand order i.e. Thumsup, Coke, Sprite, Limca, Fanta, Maaza,Minute Maid Pulpy Orange, Kinley (mineral water & Soda water).
RED SCORE TRACKINGThe performance of market developer is measured on the basis of score tracking.Tracking will be done of the following Parameters:
1. Visi-cooler 35 points
2. Availability 40 points
3. Activation Elements 25 points
TOTAL 100 points
These 100 points are distributed in various Parameters explained in the following table
RED SCORING SHEET
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RED SCORING SHEET
RED PARAMETERGROCERY E&D CONV.D G S D G S D G S
VISICOOLER
Is a coca cola cooler present Is the cooler as per standard 4 4 4 4 4 4 4 4 4
Is the cooler in prime location 10 10 10 10 10 10 10 10 10
Is the visicooler in a working Condition 3 3 3 3 3 3 3 3 3Is the visicooler light working 2 2 2 2 2 2 2 2 2Is the cooler 100% pure 10 10 10 10 10 10 10 10 10Is the cooler brand order compliant 6 6 6 6 6 6 6 6 6Total 35 35 35 35 35 35 35 35 35
AVAILABILITY
CAN 4 4 RGB-CSD 12 22 25 25 14 18 18RGB-MAZAA 4 8 10 10 4 4 4MOBILE-CSD 16 16 10 6 5 5 13 13 14MOBILE-MAZAA 4 4 4 3 3 4LARGE PET-CSD 16 16 10 LARGE PET-MAZAA 4 4 TP-MAZAA 2 2 TOTAL 40 40 40 40 40 40 40 40 40
ACTIVATION
W arm Display Rack 10 10 8 10 10 10Is the rack pure and charged 10 10 7 Shelf Display 5 5 5 Crate display with wrap 5 5 5Flange/Standee/GSB / DPS board/Flex board 5 5 5 10 10 10Aerial Mobile Hanger 5 5 Menu board/Menu card 15 Combo communication 15 15 Branded table mat/table vinyl 5 5 Total 25 25 25 25 25 25 25 25 25
DISTRIBUTION NETWORK
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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 they need it. 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.
DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY
Coca-cola company distributes their schemes according to area. Area or
place where
soft drinks sold in a large manner, on those place company gives good
schemes to
shopkeeper and retailer. Place like railway station bus stand are consider in
this category and place which have low selling where company gives small
schemes to the
shopkeeper.
Criteria for providing free chilling equipment
An ice box is provided for the sale of 1-2 crates daily to the retailers.
For the sale of 5-6 crates daily a visi cooler of 4 crates is provided.
For the sale of 7-8 crates daily a visicooler of 7 crates is provided by the
company.
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If the sale exceeds 9 crates daily then a visicooler of 9 crates or deep fridger
is
provided by the company, A STEPLIZER OF 1 KV to 5 KV is provided with the
visi cooler & chest cooler.
SALES PROMOTION
PUSH & PULL STRATEGY
PUSH STRATEGY:-
HCCBPL is using Push strategy in which they use its sales force and trade
promotion
money to induce intermediaries to carry, promote and sell the product to end
users i.e.
consumers. For example-as HCCBPL is giving free pet bottles and other trade
schemes to distributors, agency owners and retailers.
PULL STRATEGY:-
HCCBPL is also using Pull strategy in which they are using advertising and
promotion to persuade consumers to ask intermediaries for the company
brand product by this way
HCCBPL inducing customer to order it from shopkeeper. For example-
HCCBPL is using flanges, display racks, tier racks, standees, mobile hangers
and visicooler brand strips.
RESEARCH METHODOLOGY
The research includes the study which was descriptive in nature. It basically
aims about
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how coke schemes plays in the mind of shopkeepers and the consumers.
The study includes two methods-
(a)PRIMARY
(b)SECONDARY
Primary includes the following ways-
Observation
Experiment
Survey
Here we include the primary method of survey
Research Instruments-
Questionnaire-A printed questionnaire was there to make the survey.
RED scoring sheet
Area of Survey-Canal Road, Bhagwati Nagar, Jewel Chowk, Bus Stand,
Anand Nagar, Roop Nagar, Muthi and BSF Paloura.
Sampling plan
Sampling unit - Owners of the retail outlets.
Sampling size- 250 outlets
Sampling procedure-Random sampling
Sampling method- Retailers survey
SECONDARY DATA- For the secondary study data was not available so it is
taken
from company records.
AREA- Canal Road, Bhagwati Nagar, Jewel Chowk, Bus Stand, Anand Nagar,
Roop Nagar, Muthi and BSF Paloura.
SIZE OF VISICOOLER
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5%
14%
74%
4% 3%
percent
2cs4cs7cs9cs20cs
Is pre-selling good or bad
90%
10%
pre-sellinggood bad
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HOW MUCH HAS THE VISIBLE PRODUCT?
board flange rack table top0
50
100
150
200
250
visiblenot visible
Leading brand of coca-cola
thumsup48%cocacola
9%
limca20%
sprite8%
fanta7%
maaza8%
share
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Channel of Coke
7%
68%
25%
channelsE&D convenience Grocery
OUTLET BELONG TO WHICH CLASS
DIAMOND28%
GOLD14%SILVER
36%
BRONZE22%
CLASS OUTLET
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high30%
medium20%
low50%
INCOME GROUP
MARKET SHARE
70%
30%
MARKET SHARE
NOT FAMILIARFAMILIAR
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DIVISION OF MARKET
70%
30%
DIVISON OF MARKET
NOT FAMILIARFAMILIAR
RETAILER FAMILIAR WITH RED
70%
30%
NOT FAMILIARFAMILIAR
Project RED is a live project. It can broadly be classified in two stages, which can be described as follows.
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Initial Stage:-
This stage comprises of Product Knowledge and Process Knowledge.
The product knowledge means the knowledge of every product and its
variants offered by the company-
The Process Knowledge means the knowledge about the distribution of the
product and its variants from the sales depot to the different retailers of the
city. The actual knowledge about the product and the process was attained
with the help of Route Riding.
Route Riding means to visit different outlets on the commuting vehicle
(vehicle which carries coke product from depot to different outlets) along
with salesman. By the route riding it is very easy to grasp and understand
how the cola market actually works. Route riding elaborated the factors
influencing the cola market and provided the information about the
competitor’s strategies and schemes which they offer to the retailers in order
to gain advantage. Retailer’s grievances were best know with the help of
route riding through personal interaction. Also with route riding any one can
know about the sales status of an outlet on a daily basis.
Later stage:
This stage comprises of the serious implementation of the project RED in
the area of Jewel, Bus Stand, Canal Road. To ensure effective and fruitful
implementation of the campaign, market developers (M.D.) were appointed
by the company. Market Developers carried the responsibility to handle all
the activities under the R.E.D. campaign. The first step involved in this stage
was to select the outlets where the campaign has to be implemented. The
outlets are selected on the basis of some parameters like annual sale of the
outlet, type of the outlet, space available at the outlet etc.
PJP(permanent journey plan)
(P.J.P. plan):. The P.J.P. plan is a day wise schedule of a market developer
which
contains the names of the outlets to be visited by him coming under the
campaign R.E.D. where the project has to be implemented. After getting
permanent journey plan the next step was to visit the outlets for gaining
50 | P a g e
initial information of every individual outlet as well as market on a whole.
The visit to all the outlets of that area helped in revealing its market
condition. Visiting the outlets clearly showed the picture of the market
situation prevalent in market..
PRE SALE CONCEPT
This is a new concept by the company. In this concept company takes order
one day
before and then delivers the product to each route. So this gives more time
to market
developer to assure RED.
This concept has so many advantages-
This gives more time to the market developer for the activation &
branding purpose.
By this company can easily implement the RED concept in better way.
Presale concept makes assure of more availability of the products in
the market.
This concept is easy in processing.
By this concept market developer can arrange the product in better
way.
The Company can display its products in proper way so that customers
can attract towards it.
HORIZONTAL EXPANSION
Horizontal expansion means inclusive of new outlets. I in this training converted b 2 outlets from Pepsi to coca cola and one new outlet.
HYPOTHESIS
Hypothesis
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(A) Null hypothesis (H0 ):The coke has more consumption then Pepsi.
(B) Alternate Hypothesis (H1): The coke has not more consumption then
Pepsi.
(C) Let the level of significance is(α)= 5%In testing the hypothesis since the
test is two tailed is Z=+-1.96
TEST FORMULA
Z= P1-P2
√PQ [1+ 1]
n1 n2
P= n1P1 +n2P2
n1+n2
Q=(1-P)
where
P-Total population proportion of Coke & Pepsi
P1-Sample proportion of coke
P2-Sample proportion of Pepsi
n1- sample size of coke
n2- sample size of Pepsi
After calculated value is Z=1.34 which is less then calculated from the table
Z=1.96 hence null hypothesis is accepted.
CONCLUSION –The coke product is more consumption then Pepsi.
2)Hypothesis
(A)Null hypothesis (H0 ):The market share of coke is higher than Pepsi.
(B)Alternate Hypothesis (H1): . The market share of coke is not higher than
Pepsi.
(C)Let the level of significance is(α)= 5% which the hypothesis is tested.
FORMULA
Z = P*-P
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√P(1-P)
n
P=Sample proportion
P*=Population proportion
n=sample size
The calculated value is less then value calculated from the table that is 1.96,
So the null Hypothesis is accepted.
CONLUSION- The Market share of coke is higher than Pepsi
3)Hypothesis
(A)Null hypothesis (H0 ):Presale is good for the company.
(B)Alternate Hypothesis (H1): Presale is not good for the company
(C)Let the level of significance is (α)= 5% which the hypothesis is tested.
FORMULA
Z = P*-P
√P(1-P)
n
P=Sample proportion
P*=Population proportion
n=sample size
The calculated value(1.56) is less than the value calculated from the table
that
is 1.96 hence hypothesis is accepted.
Conclusion – Presale is good for the company.
CONCLUSION
RED is a worldwide project of COCA COLA Company. This project is playing a
very
important role for the company. With the help of this project, sale of the
company has
been increased. Because in this project there is one market developer who
has to ensure that Visicooler must be on prime location, all brands must
available, all brands must displayed in brand order i.e. COLOJK. All the
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activation elements like warm display rack, table top rack, standees etc must
be available at all outlets come under RED. All these elements help the
company in increasing the sales because
“JO DIKHTA VO BIKTA HAI”
Definitely when sales increase then profits also increases. With the help of
this project company has increased its sale in Jammu region and also
company can measure or check the performance of each retailers working all
over the world with COCA COLA COMPANY.
FINDINGS
According to the demand of outlet owners, delivery of products are not
made available in the outlets.
Efficient brands of coca – cola are not available in outlets.
Sales people and delivery persons do not visit the outlets on a regular
basis.
Advertisement materials are not available in the right time at the right
place i.e. different Channels like Grocery, Convenience, E&D.
Many outlet owners have complains on improperly working visicooler
i.e. its cooling Capacity is low or its lights are not working.
Improper management is seen as No mechanics visit the outlets
despite of complaints issued by outlet owners.
Visicoolers are not placed at their Prime locations in many outlets.
Many outlet owners express deep in satisfaction towards coca-cola as
they do not get any prize or Cash discount as they receive from other
B companies.
54 | P a g e
FACTS
The most popular flavor is Thumsup in the whole market.
Cocacola is the market leader and Pepsi is the market challenger.
Thumsup has the highest sales from the Coca cola’s side and from the
Pepsi‘s side mountain Dew has the highest sales.
Aquafina has more sales then Kinley in mineral water segment.
Pepsi provides more schemes then Cocacola.
Sprite has the fastest grownup brand in the clear lime segment in the
recent years.
In the off season when the sale is reduced retailers want more
schemes.
Minute maid pulpy orange has not getting good response from the
market.
Availability of visicooler is another issue.
SUGESSTIONS
Delivery position should be maintained to get good return from the
market.
The company must try to make different brands of Coca-Cola available
at every
retail outlet whether it is large or small, otherwise the consumer may
go for substitute.
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Sales People and delivery persons should properly monitor the market
whether
stocks are available and are properly utilized in the market or not.
We can provide them beautiful display racks, tablemats, menu-cards
etc,
containing the trademark and brand name of the company.
Display material should be provided to the retailers on more regular
basis to
increase the sales level.
Maintenance work of refrigerator; i.e. purity must be improved.
The company should take steps to replace damaged or unsellable
Coca-Cola
goods frequently from the retailers.
The Company employees should make direct contact with the
consumers, so that they may aware with real situation of the market
and consumers attitude towards the product. For this they can arrange
awareness camps in different locations.
At every petrol-pump we should install Fountain Machine. It will be
helpful in
generating impulse purchase and also as awareness about the
products of the
company among the consumers.
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QUESTIONNAIRE
NAME OF OUTLET OWNER: AREA:
CONTACT NO.:
(A ) GENERAL QUESTIONS
1).Type of channel
a) Grocery ( ) b) Eating & Drinking1 ( ) c) E&D2 ( ) d) Convenience ( )
2). Type of category
a) Diamond ( ) b) Gold ( ) c) Silver ( )
3). Are you familiar with project RED?
a) Familiar ( ) b) Unfamiliar ( )
4).Your belief on Coca Cola increased from Project RED by?
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a) 25% ( ) b) 50% ( ) c) 75% ( ) d) 100% ( )
5).What kind of incentives you are getting from distributors?
a) Schemes ( ) b) Prizes ( ) c) Scratch coupons ( ) d) Cash discount ( ) e) None ( )
(B) AFTER PROJECT RED
6) Improvement in condition of visicooler?
a) Yes ( ) b) No ( ) c) As it is ( )
dailyweeklymonthly
7) Has the availability of product increased?
a) Yes ( ) b) No ( ) c) As it is ( )
2%
18%
80%
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8) Has the activation of outlet increased?
a) Yes ( ) b) No ( ) c) As it is ( )
2%
18%
80%
Chart Title
9) Is the delivery of Coca cola’s product increased?
a) Yes ( ) b) No ( ) c) As it is ( )
2%
18%
80%
Chart Title
(C) PERFORMANCE OF RED TEAM
10) What is the performance of Market developer?
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a) Poor ( ) b) Better ( ) c) Best ( )
2%
18%
80%
Chart Title
11) What is the frequency of deliveryman visit?
a) Daily ( ) b) Weekly ( ) c) Monthly ( ) d) Never ( )
2%
17%
78%
3%
dailyweeklymonthlynever
12) What is the frequency of visit of DGM/MEM?
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a) Daily ( ) b) Weekly ( ) c) Monthly ( ) d) Never ( )
2%
17%
78%
3%
dailyweeklymonthlynever
13) Do you want to continue with RED project?
a) Continue ( ) b) Discontinue ( )
90%
10%
continuediscontinue
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DECLARATION
I, VINEET BHAT, hereby declare that this Project titled “INCREASING IMPACT
OF RED (RIGHT EXECUTION DAILY) in Jammu city for “HINDUSTAN
COCACOLA BEVERAGES PVT LTD.” Is based on live project study
conducted by me under the guidance of Mr.Devender Sachdeva. This project
has not been submitted earlier for the award of any other Degree/diploma to
any other Institute or University.
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PLACE: JAMMU VINEET BHAT
DATE :12 JUL, 2010
REFERENCE BOOKS
Marketing Management : Philip Kottler
Marketing Research : Bound, Stash & Others
“Booklet of RED”, COCA COLA INDIA
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INTERNET
www.coca-cola.com
www.cocacolaindia.com
www.google.co.in