A PROJECT REPORT ONMarket research on assessing the factors influencing in selection of cold drinks in restaurants of bangalore and comparative analysis of coke and pepsi with respect to these factors and evaluating impact of brrrr advertisement and minute maid nimbu fresh campaign of coke

Submitted in partial fulfillment of the requirement

For MBA degree course

By

AMIT KUMAR SHUKLA

Reg no :1021405

Under the guidance of

Faculty Guide:

Company guide:Ms Vertika verma Mr. Anand RatnaparkhiSr. Lecturer

Channel manager HCCBPL

Dept. of MBA,Christ university Bangalore

Bangalore

CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT

BANGALORE -560 029

MBA 2010-2012 DECLARATIONI hereby declare that the project study titled Market research on assessing the factors influencing in selection of cold drinks in restaurants of bangalore and comparative analysis of coke and pepsi with respect to these factors and evaluating impact of brrrr advertisement and minute maid nimbu fresh campaign of coke is my original work carried out during the period from April 2011 to May 2011 under the guidance of Professor Ms. Vertika Verma Sr. Faculty Guide, Christ University Institute of Management, Bangalore and Mr. Anand Ratnaparkhi Channel manager HCCBPL bangalore, Karnataka.

I also declare that this project has not been submitted nor shall it be submitted in future to any other University or Institution for the award of any other Degree or diploma.

DATE:

PLACE: BANGALORE

AMIT KUMAR SHUKLAACKNOWLEDGEMENT

I would like to thank my Mr. Anand Ratnaparkhi, channel Manager, 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, Miss Prema Prabha and Mr.Anand Patted 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 my internship period. I thank Christ University institute of Management Studies for having given me this opportunity to put to practice, the theoretical knowledge that I imparted from the program. I thank the internship guide, miss Vertika verma 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.

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 worlds 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 Jacobs 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. This is a primary research project. This project is broadly classified in three Parts; the first part gives us factors influencing selection of cold drinks in restaurants and competitive analysis of coke and pepsi wrt these factor,second part describes impact of BRRR advertisement and effectiveness of whole campaign and third part deals Analysing effectiveness of MMNF rgb 200ml campaign.. The findings of the activity have been drawn out in form of graphs and suggestions have been offered there from.

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION7

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 COMPANY12 2.1:History12 2.2: History ofBottling..13 2.3: Manifesto for Growth16 2.3.1:Values...162.3.2:Mission16 2.3.3: Vision for Sustainable Growth...17CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED..18 3.1: About the Company.18 Figure 2: Location of COBO, FOBO and Contract packers..19 3.2: Manifesto for Growth19 3.2.1: Quality Policy.19 3.3: Business plan model20 Figure 3: Business plan model ...20 3.4: Distribution Network.20 3.4.1: Distribution Routes.22 3.4.2: Distribution System22 3.4.3: Departments involved in the Distribution process.22 3.5: SWOT Analysis of HCCBPL23

3.5.1: Strengths.23

3.5.2: Weaknesses24

3.5.3: Opportunities.24 3.9.4:Threats25 3.6: Competitors to HCCBPL25CHAPTER 4: PRODUCTS27 4.1: Packaging details 40CHAPTER 5: Factors influencing selection of cold drinks in restaurants 30

5.1 Executive summary.30

5.2 Research methodology.31

5.3 Tools of data collection31

5.4 Analysis and result32

5.5 Coclusion..39

5.6 Suggestion.40

5.7 Appendix..42

CHAPTER 6: Evaluation of Advertisement campaign Brrrr.43

6.1 Problem statement44

6.2 Research objective44

6,3 Importance of this project44

6.4 Reasons for selecting this project.45

6.5 Literature survey..46

6.6 Basic introduction to advertisement..47

6.6.1 Types of advertisements.48

6.6.2 How to measure sales effectiveness of ads..48

6.7 Techniques for measuring advertising effectiveness.50

6.8 Official statistics of Brrrr ad campaign..50

6.9 Highlights in history of coke tv ad53

6.10 Sampling design..58

6.11 Research design 59

6.12 Data collection.60

6.13 Data analysis62

6.14 Conclusion71

6.15 Appendix.72

CHAPTER 7: A nalysis of Consumer and retailer behavior towards minte maid nimbu fresh rgb 200 ml747.1 Executive summary.74

7.2 About the product MMNF...75

7.3 Promotional strategies.76

7.4 Objective of the study..77

7.5 Problem statement77

7.6 Research methodology.78

7.7 Analysis.80

7.8 Findings..91

CHAPTER 8: References.96

CHAPTER 1: 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 worlds 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 Companys 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 worlds 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 Companys 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 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, 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 INSIGHTIn 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.

SHAPE \* MERGEFORMAT

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.

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.

CHAPTER 2: THE COCA-COLA COMPANY

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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 Jacobs 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. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons 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 Companys 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.

2.2: HISTORY OF BOTTLINGCoca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today.

YEAR WISE HISTORY OF BOTTLING:

Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales.

Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.

Years 1900-1909: Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high.

Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world.

In the 1920s: Bottling overtakes fountain sales

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

In the 1920s and 1930s: International expansion

Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries.

In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business.

In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960.

In the 1960s: Introduction of new brandsSprite, 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 marketsPolitical 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 todayThe 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 values serve as a compass for their actions and describe how they behave in the world:

LEADERSHIP: The courage to shape a better future

COLLABORATION: Leverage collective genius

INTEGRITY: Be real

ACCOUNTABILITY: If it is to be, its up to me

PASSION: Committed in heart and mind

DIVERSITY: As inclusive as our brands

QUALITY: What we do, we do well

2.3.2: MISSION

To Refresh the World...

To Inspire Moments of Optimism and Happiness...

To Create Value and Make a Difference.

2.3.3: VISION FOR SUSTAINABLE GROWTH

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

PORTFOLIO: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy peoples desires and needs.

PARTNERS: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

PLANET: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

PROFIT: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.

PRODUCTIVITY: Be a highly effective, lean and fast-moving organization.

CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL)

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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 Parles plants and a well set bottling network, an excellent base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company.

In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias 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.

FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA3.2: MANIFESTO FOR GROWTH3.2.1: QUALITY POLICY

To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processesEvery time.

3.3: BUSINESS PLAN MODEL AT HCCBPL

SHAPE \* MERGEFORMAT

FIGURE 3: BUSINESS PLAN MODEL

3.4: DISTRIBUTION NETWORK

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.

3.4.1: 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 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.

3.4.2: 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. 3.4.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

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.

3.5: SWOT ANALYSIS OF HCCBPL3.5.1: STRENGTHS

DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy 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.

3.5.2: 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 Companys 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.

3.5.3: OPPORTUNITIES

LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market.

EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.

HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.

3.5.4: THREATS IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.

TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems.

SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the companys products.

3.6: 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: Nestl: 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_______________________________________________

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:

In the Soda Water and Bottled Mineral Water section:

In the Tonic Water section:

4.1: PACKAGING DETAILS

Coca-Cola, Thums Up, Fanta ,Limca and Sprite: 330 ml can, 200 ml and 300 ml returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles

Diet Coke: 330 ml can and 500 ml PET bottle

Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack

Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles

Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET bottles

Schweppes Mineral Water: 750 ml PET bottles

Schweppes Tonic Water: 330 ml can

Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free and 1.5 litre PET bottles.

Minute Maid Nimbu Fresh : 400 ml and 1 litre PET bottles,RGB 200 ml

CHAPTER 5

5.1 Executive summary:

In order to understand preference of restaurants serving cold drink a market research is being conducted so to bridge the gap between demand of E&D outlets and supply of coke.

5.1.1 Problem statement:

To find out ways through which market share of coke can be increased in koramangla bangalore.

5.1.2 Reasearch Objective:

To study impact of various factors affecting sales in E & D oulets.

5.1.3 Importance of this project:

1.coke will be able to analyze various factors affecting buying preference of E&D outlets.

2.Factors affecting sales

3.Competitors strength and weakness.

4.The project is a learning for me in my development towards becoming masters in business management. The various hurdles as well as supporting pillars display a valuable opportunity to learn from it and apply it in my practical life for a bright future. Lastly it teaches me the importance of the sales promotion.

5.2 Research Methodology

Sampling: simple random sampling

Data collection: Primary method

Methodology: Administered survey

Total no. Of respondants:170

5.3 Tools of data collection:

Questionnaire in survey: the questionnaire contained question on the reason for serving any cold drink in restaurant. In this question six parameters are given and respondent are asked to give each parameter a score on scale of 1 to 5. Then they are asked for the reason if they want to change cold drink and expectations.

Then these questions are used to find the most important reason for the preference of the cold drink and the order of preference using one-tailed Anova.

The restaurant using serving both Coca-cola and Pepsi are also asked to give a score on sale of 1 to 5 on these parameters with reference to Coca-Cola & Pepsi.

Using these questions standing of Coca-cola on these parameters with comparison to Pepsi is checked using two sample t-tests.

5.4 Analysis and result

1. Comparison of mean scores and finding the order of importance of parameters for a preference of a cold drink.

Given below are the mean scores of the parameters of preference of a cold drink.

* Here 1 is Consumer Preference; 2 is Offers and Promotion; 3 is margin given; 4 is ease of availability; 5 is fulfilment of orders; 6 is good service provided

From these descriptive one tailed hypothesis is formed to perform one tailed Anova.

Hypothesis: Good service> Fulfilment of orders> Margin given> Ease of availability> Offers & promotion> consumer preference

ANOVA

Sum of SquaresdfMean SquareFSig.

Between Groups162.094532.41929.213.000

Within Groups1124.16110131.110

Total1286.2551018

The significant value is less than 0.05 (i.e. value of alpha) so our hypothesis is accepted.

i.e. Good service is more preferred reason over Fulfilment of orders which is more preferred over Margin given is preferred over Ease of availability which is more preferred over Offers & promotion which is preferred over consumer preference.

Hence Good service is most preferred where as consumer preference is preferred the least.2. To see the standing of Coca-cola on various parameters (Consumer preference, offers & promotional activities to restaurants, margin given to restaurants, ease of availability, timely and easily fulfilment of orders and service provided) with comparison to Pepsi, restaurants that keep both Pepsi and coca-cola were asked to rank both Coca-cola and Pepsi on these parameters on scale of 1 to 5.

Then the mean of the samples for each parameter is compared with t-test to see which stands out Coca-cola or Pepsi.

2.1. Consumer prefers Coca-cola over Pepsi.

Let C be the mean of consumer preference of coca-cola and P be mean for the sample of consumer preference of Pepsi

H0: C-P0

t Test for Differences in Two Means

(assumes equal population variances)

Data

Hypothesized Difference0

Level of Significance0.05

Population 1 Sample

Sample Size30

Sample Mean3.363

Sample Standard Deviation1.188

Population 2 Sample

Sample Size30

Sample Mean2.266

Sample Standard Deviation0.739

Intermediate Calculations

Population 1 Sample Degrees of Freedom29

Population 2 Sample Degrees of Freedom29

Total Degrees of Freedom58

Pooled Variance0.978733

Difference in Sample Means1.097

t Test Statistic4.294576

Upper-Tail Test

Upper Critical Value1.671553

p-Value3.37E-05

Reject the null hypothesis

Hence null hypothesis is rejected and alternate hypothesis is accepted i.e. coca-cola is more preferred over Pepsi by consumers.

2.2. No difference between Coca-cola and Pepsi in offers and promotion.

Comparison of mean scores of Offers and Promotions of Coca-cola and Pepsi

Let C be the mean of Offers & promotion of coca-cola and P be mean for the sample of Offers & promotion of Pepsi

H0: C-P=0

H1: C-P0

t Test for Differences in Two Means

(assumes equal population variances)

Data

Hypothesized Difference0

Level of Significance0.05

Population 1 Sample

Sample Size30

Sample Mean2.966

Sample Standard Deviation0.556

Population 2 Sample

Sample Size30

Sample Mean3.233

Sample Standard Deviation1.04

Intermediate Calculations

Population 1 Sample Degrees of Freedom29

Population 2 Sample Degrees of Freedom29

Total Degrees of Freedom58

Pooled Variance0.695368

Difference in Sample Means-0.267

t Test Statistic-1.24008

Two-Tail Test

Lower Critical Value-2.00172

Upper Critical Value2.001717

p-Value0.21994

Do not reject the null hypothesis

No difference between Coca-cola and Pepsi in offers and promotion.

2.3. Pepsi is giving more margin than coca-cola.

Comparison of mean scores of Margin given by Coca-cola and Pepsi

Let C be the mean of Margin given by coca-cola and P be mean for the sample of Margin given by Pepsi

H0: C-P>=0

H1: C-P=0

H1: C-P=0

H1: C-P=0

H1: C-P