coca cola sip report prateek

7/29/2019 Coca Cola Sip Report Prateek

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HINDUSTAN COCA-COLA BEVERAGES PVT.LTD

APROJECT REPORT

ON

Distribution Expansion of Hindustan Coca-Cola

Beverages Private Limited to drive business in

inactive outlets" (Horizontal Expansion)

INJAIPUR, RAJASTHAN

SUBMITTED TO:DR.S.K.PANDEY

SUBMITTED BY: PRATEEKSHUKLAPGDM,2

NDYEAR

JAIPURIA INSTITUTE OF MANAGEMENT,JAIPUR


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CERTIFICATE OF ORGINALITY

This is to certify that the project titled Distribution Expansion of Hindustan Coca-Cola

Beverages Private Limited to drive business in inactive outlets" (Horizontal Expansion) -submitted by me to Jaipuria Institute of Management, Jaipur in partial fulfillment of the Post-

Graduation Diploma in Management, and this report has not been submitted elsewhere.

Date: Prateek Shukla

Jaipuria Institute of Management, Jaipur

SIGNATURE OF FACULTY MENTOR

__________________________________

(Dr. S.K. Pandey)


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LISTOFFIGURES:

SR NO. TOPIC PAGE NO.

1. Market shares of soft drinks in India. 11

2. Beverage Industr y in India 13

3. Vision for sustainable growth 22

4. Sales Chart of Products 28

5. Opportunity to new outlets 32

6. Impact of new outlets on business 43

7. Impact of new outlets on distributors 43

LISTOFCHARTS:


1. Brand sold in market 37

2. Pack preferred for profit margin 38

3. Pack variant more in demand 39

4. Product range of coke preferred for sale 39

5. Brands Oriented decisions 40

6. Asking Schemes 41

7. Factors affects cold drink demand 41


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TABLEOFCONTENT


Preface 5

Acknowledgement 6

Executive Summary 7

1. Introduction 9-14

1.1 A Brief Insight : The FMCG Industry in India: 9

1.2 Contributions of Indian FMCG Industry: 9

1.3 A Brief Insight : The Beverages Industry in India: 10

1.4 Soft Drinks Market in India 14

Objective of the study 16

2. About Company 18-22

3. Products 24-28

Literature Review 29

4. About Project 31-33

6. Methodology 34-35

7. Analysis & Results 36

7.1 Findings of my project 37

Result 42

8. Conclusion 44

9. Recommendations 45

10. References 46

11. Annexures 47-49


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PREFACE

In summer the consumption of soft drinks is more due to hot weather in this time chilled

weather is needed everywhere and everybody irrespective of age difference. In the marketpeoples not only need water, but they want some taste too. Here comes the need of soft

drinks: it has become an essential part of market as people like it in addition to the bottles,

now days packages of soft drinks i.e. Tin cans, Pet packs of i.e. Litters canisters and

dispensers are introduced to enhance the impact in sales .

The PGDM curriculum is designed in such a way that student can grasp maximum

knowledge and can get practical exposure to the corporate world in minimum possible time.

Business schools of today realize the importance of practical knowledge over the theoretical

base.

The research report is necessary for the partial fulfillment of PGDM curriculum and it

provides an opportunity to the student in understanding the industry with special emphasis on

the development of skills in analyzing and interpreting practical problems through the

application of management theories and techniques. It is a new platform of learning through

practical experience, which incorporates survey and comparative analysis. It gives the learner

an opportunity to relate the theory with the practice, to test the validity and applicability of

his classroom learning against real life business situations.


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ACKNOWLEDGEMENT

Apart from the efforts of an individual, the success of any project depends largely on the

encouragement and guidelines of many others. I take this opportunity to express my gratitudeto the people who have been instrumental in the successful completion of this project.

I wish to express our deep gratitude to my industry mentor, Mr. Himanshu Mittal and S.T.L

Mr. Ved Prakash Pandey for guiding me through this project and for always being there to

help me cross hurdles.

I would also like to convey my special thanks to Hindustan Coca-Cola beverages ltd and

Jaipuria Institute of Management, Jaipur for giving me the opportunity to do such projectsthat help in understanding the concepts better.

The guidance and support received from my mentor Dr. S.K.Pandey who contributed and

who are contributing to this project, was vital for the success of the project.


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EXECUTIVE SUMMARY

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

Georgia, on May 8, 1886. Coca - Cola Company is the 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 softdrink brand in India until 1977, when it left rather than reveals its formula to the Government

and reduces its equity stake as required under the Foreign Regulation Act (FERA) which

governed the operations of foreign companies in India. In the new liberalized and deregulated

environment in 1993, Coca - Cola made its re - entry into India through its 100% owned

subsidiary, HCCBPL, the Indian bottling arm of the Coca - Cola Company .

The main objective of this report attempts to reveal the secrets and tools which would be

helpful in horizontal market expansion for the whole coca cola product range by first

analyzing and then enhancing the market of Coca Cola. The study is divided into two parts.

First is to analyze the existing market, try to find their problems and reasons for doing

business with company. In second part untouched market was explored and their reasons for

not doing business with company where studied. Thus report will provide an opportunity to

know existing and new retailers psychographic needs, it may provide an opportunity to the

Coca - Cola to frame a good future plan to satisfy maximum needs, taste preferences of the

retailers and established its guiding role in the market of Jaipur & in marketing plan for


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different areas.

1.Introduction


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1.1A Brief Insight : The FMCG Industry in India:The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in

the country and over the years has been growing at a very steady pace. The sector basically

consists of consumer non-durable products, which broadly consists, personal care, household

care and food & beverages.

The Indian FMCG industry is largely classified as organized and unorganized. This sector is

also buoyed by intense competition. Besides competition, this industry is also marked by a

robust distribution network coupled with increasing influx of MNCs across the entire value

chain. This sector continues to remain highly fragmented.

The FMCG industry is volume driven and is characterized by low margins. The products arebranded and backed by marketing, heavy advertising, slick packaging and strong distribution

networks. The FMCG segment can be classified under the premium segment and popular

segment. The premium segment caters mostly to the higher/upper middle class which is not

as price sensitive apart from being brand conscious. The price sensitive popular or mass

segment consists of retailers belonging mainly to the semi-urban or rural areas who are not

particularly brand conscious. Products sold in the popular segment have considerably lower

prices than their premium counterparts.

1.2:Contributions of Indian FMCG Industry:

After registering a 12% growth in 2009 despite the economic downturn, major FMCG firms

remain optimistic and expect a 15% growth in 2010. The Indian FMCG industry sales are

estimated to grow 14.5% to reach RS 854.7 Billion. Within the Indian FMCG industry, there

are few sectors that will grow more than 20% during 2009-2010, like shaving cream at 23%,

skin/fairness cream at 22%, shampoos at 21.3%, skin care & cosmetics at 20%, tooth powder

at 22% and other care products.

The prediction of higher sales growth of FMCG products is based on strong economic

fundamentals such as rising disposable income of people. Now people can afford to spend on

quality FMCG products. Moreover, increasing salaries, along with rising trend of perks in the

corporate sector at regular intervals, have increased peoples spending power on lifestyle


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products. Even government employees too are expending on lifestyle products helping

FMCG sector to grow rapidly.

Apart from this, India is rapidly changing into an urban country and with that, peoples

preference for lifestyle products is growing. Hence, the Indian FMCG industry is

experiencing strong growth in some categories such as skin care, anti-aging solution,

deodorants, fairness products and mens products. In addition, the emergence of organized

retail such as supermarkets, and shopping malls is also playing an important role in bringing

boom in the Indian FMCG market. The young generation of consumers is driving the demand

for lifestyle products.

Consumers are at the front seat changing and redefining the branding and marketing strategy

and marketplace for the retail products that are ultimately boosting the retail sales in the

country. However, the fear of dissociation with earlier consumers still persists as they

embrace and prefer to stick to established brands only. The main reason for this dissociation

is weak distribution channels and marketing strategy in the country.

According to a Research Analyst at RNCOS, The demand for lifestyle products is boosted

by the rising aspiration and modern facilities. As the spending power of consumers is going

up, the sales of FMCG products in India will rise too. Therefore, companies need to improvethe quality of products and employ right marketing mix by implementing new technologies

such as Customer Relationship Management.

1.3A Brief Insight : The Beverages Industry in India:

FOOD:

According to the Ministry of Food Processing, the size of the Indian food processing industry

is around US$ 65.6 billion including US$ 20.6 billion of value added products. Of this, the

health beverage industry is valued at US$ 230 billion; bread and biscuits at US$ 1.7 billion;

chocolates at US$ 73 million and ice creams at US$ 188 million. The size of the semi-

processed/ready to eat food segment is over US$ 1.1 billion. Large biscuits & confectionery

units, soya processing units and starch/glucose/sorbitol producing units have also come up,

catering to domestic and international markets. The three largest consumed categories of

packaged foods are packed tea, biscuits and soft drinks.


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BEVERAGES:

The Indian beverage industry faces over supply in segments like coffee and tea. However,

more than half of this is available in unpacked or loose form. Indian hot beverage market is a

tea dominant market. Consumers in different parts of the country have heterogeneous tastes.

Dust tea is popular in southern India, while loose tea in preferred in western India. The urban-

rural split of the tea market is 51:49 in 2000. Coffee is consumed largely in the southern

states. The size of the total packaged coffee market is 19,600 tons or US$ 87 million. The

urban rural split in the coffee market is 61:39. The total soft drink (carbonated beverages and

juices) market is estimated at 284 million crates a year or US$ 1 billion. The market is highly

seasonal in nature with consumption varying from 25 million crates per month during peak

season to 15 million during offseason. The market is predominantly urban with 25 per cent

contribution from rural areas. Coca cola dominate the Indian soft drinks market. Mineral

water market in India is a 65 million crates (US$ 50 million) industry. On an average, the

monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during

peak season.

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

retailers and satisfy the existing retailers.

F ig 1: M arket shares of soft drinks in I ndia.


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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:

a. Alcoholic, non - alcoholic and sports beverages

b. Natural and Synthetic beverages

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

d. Age wise segmentation i.e. beverages for kids, for adults and for seniorcitizens

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

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.

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 retailers 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 retailers have while consuming the beverages.


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Retailer 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 retailers are able to find anappeal to go out, purchase and consume.

F igu r e2 : Beverage I ndust r y in I nd ia

SOFT DRINKS

CARBONATED

COLA FLAVOURED

THUMS UP,COKE PEPSI, DIET

NON-COLA

FLAVOURED

ORANGE

FLAVOURED

FANTA,MIRINDA

LIME FLAVOURED

CLEAR LIME

SPRITE,DEW

CLOUDY LIME

LIMCA

NON

CARBONATED

MINERAL WATERMANGO

FLAVOURED

MAAZA,SLICE

,FROOTI


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1.4Soft Drinks Market in IndiaIndia is one of the top five markets in terms of growth of the soft drinks market. The per

capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum

in the year 2009. It is very low compared to the corresponding figures in US (600+ bottles

per annum). But being one of the fastest growing markets and by the sheer volumes, India is

a promising market for soft drinks. The major players in the soft drinks market in India are

COCA- COLA Co and PepsiCo, like elsewhere in the world. Coca-Cola acquired a number

of local brands like Limca, Gold Spot and Thums Up when it entered Indian market for the

second time. COCA- COLA Cos soft drink portfolio also consists of Fanta and Sprite along

with COCA- COLA. The market share of each of the company is more or less the same,

though there is a conflict in the estimates quoted by different sources.

The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink

content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malic

acid, Colors, Preservatives, Anti-Oxidants and other emulsifying agents, etc.


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RATIONALE OF THE STUDY

The biggest question of any study is why we are doing that study? Jaipur is capital of

Rajasthan and one of the hottest place in India so this leads to a good chance of selling of soft

drinks. In summer time every company has a good opportunity to grow in terms of sales as

well as to introduce new products which will able to attract new customers and increase

company market share.

To increase its market share with bronze outlet / inactive outlet and open new outlet is not an

easy task because of many reasons which are discuss in detail in my report. Pepsi India co. ltd

also knew the market situation therefore they also gave many benefits to retailers to retain its

place on the top in Jaipur market. This strategy of Pepsi Co ltd to penetrate the market this

really cost a lot to Coca-Cola India ltd which do not have any answer of outstanding schemes

Coca-Cola must had to think a lot in the scheme direction detailed discussion is being done in

my report.

So this is very important to touch new market from where company is not getting any

business. My report will try to find out the answers that what are the reasons company

facing with these markets?


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OBJECTIVEOFTHESTUDY

My objective of this study is very simple, I want to explore the market situation as well as to

increase the market share by distribution expansion (HE) so that Coca-Cola can became

market leader in Jaipur market with full customer satisfaction.

The objectives were:

To increase market share of Hindustan Coca-Cola Beverages Private Limited (Jaipur)

and improve the current market position of the company.

To develop new outlets as well as to maintain the output from existing Bronze

Outlets.


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2. About Company


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CHAPTER 2: THE COCA COLA COMPANY

2.1: HISTORY

John Smyth Pemberton, a pharmacist, first introduced Coca-Cola 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 toinform 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


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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.


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HINDUSTAN COCA-COLA BEVERAGESPRIVATE LIMITED

2.2: ABOUT THE COMPANY

Every person who drinks a Coca - Cola enjoys a moment of refreshment and shares anexperience that millions of others have savored. All of those individual experiences combined

have created a worldwide phenomenona truly global brand. On the distribution front, 10 -

ton trucks, open - bay three - wheelers that can navigate the narrow alleyways of Indian

cities, ensure availability of Coke brands in every nook and corner of the country. The

company - owned Bottling arm of the Indian Operations, Hindustan Coca - Cola Beverages

Private Limited is responsible for the manufacture, sale and distribution of beverages across

the country.

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

reveals its formula to the Government and reduces 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 26 t h 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, Gold - Spot, 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


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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 - ton trucks to open - bay three

wheelers that can navigate through narrow alleyways of Indian cities and trademarked

tricycles and pushcarts.

2.3: MANIFESTO FOR GROWTH

2.3.1: VALUES:

To achieve sustainable growth, we have establ ished a vision wi th clear goals.

Profit: Maximizing return to share owners 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.

2.3.2: MISSION:

We are guided by shar ed values that we will l ive by as a company and as indi viduals.

Leadership: "The courage to shape a better future"

Passion: "Committed in heart and mind"

Integrity: "Be real"

Accountability:"If it is to be, its up to me"

Collaboration: "Leverage collective genius"


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Innovation: "Seek, imagine, create, delight"

F ig 3:Vision for sustainable growth


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3.Products


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Product Size & Packs:

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.

COCA-COLA:-

In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated

its departure. Coca-Cola made its return to the country in 1993 and made significant

investments to ensure that the beverage is available to more and more people, even in remote

and inaccessible parts of the nation.

Over the past fourteen years has enthralled consumers in India by connecting with passions of

IndiaCricket, movies, music & food. Coca-Colas advertising campaigns Jo

ChahoHoJaye&Life HoTohAise were very popular & had entered youths vocabulary. In

2002.Coca-Cola launched its iconic campaign ThandaMatlab Coca-Cola which sky

rocketed the brand to make it Indias favourite soft drink brand.

GLASS PET CAN FOUNTAIN

200ml, 300ml,

500ml, 1000ml

500ml, 1.5L, 2L,

2.25L, 500ml, 100ml

330 ml VARIOUS SIZES

Table - 1

LIMCA:-

Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1

sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and


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lemoni bite combined with the single minded proposition of the brand as the provider of

Freshness.

Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from Nimbu +

Jaise hence Lime Sa, Limca has lived up to its promises of refreshment and has been the

original thirst choice of millions of customers for over 3 decades.


200ml, 300ml,

500ml, 1000ml

500ml, 1.5L, 2L,

2.25L, 500ml, 100ml


Table - 2

THUMS UP:-

Thums up is a leading sparkling soft drink and most trusted brand in India. Originally

introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up

is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude.

This brand clearly seeks to separate the men from the boys.


200ml, 300ml,

500ml, 1000ml

500ml, 1.5L, 2L,

2.25L, 500ml, 100ml


Table - 3

SPRITE:-

Sprite a global leader in the lemon lime category is the second largest sparkling beverage

brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a

true teen icon.


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RGB PET CAN FOUNTAIN

200ml, 300ml 500ml, 600ml,

1250ml, 1500ml,

2000ml, 2250ml


Table4

FANTA:-

Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong

market place and is identifies as The Fun Catalyst. Perceived as a fun youth brand, Fanta

stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings

but also helps free spirit thus encouraging one to indulge in the moment. This positive

imagery is associated with happy, cheerful and special times with friends.

GLASSPET CAN FOUNTAIN

200ml, 300ml 500ml, 1.5L, 2L,

2.25L, 500ml, 100ml


Table5

MINUTE MAID PULPY ORANGE:-

The history of the Minute Maid brand goes as far back as 1945 when the Florida Food

Corporation developed orange juice powder. The company developed a process that

eliminated 80% of the water in the orange juice, forming a frozen concentrate that when

reconstitute created orange juice. They branded it Minute Maid a name connoting the

convenience and the ease of preparation. Minute Maid thus moved from a powdered

concentrate to the first ever orange juice from concentrate.


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The launch of Minute Maid in India (started with the south of the country) is aimed to further

extend the leadership of Coca-Cola in India in the juice drink category.

Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.

MAAZA:-

Maaza was introduced in late 1970s. Maaza has today come to symbolise the very spirit of

mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza

is the mango lovers first choice.

RGB PET POCKET MAAZA

200ml, 250ml 600ml, 1.2L 200ml

Table6

KINLEY:-

The importance of water can never be understated, Particularly in a nation such as India

where water governs the lives of the millions, be it as a part of everyday ritual or as the

monsoon which gives life to the sub-continent. Kinley water comes with the assurance of

safety from the Coca-Cola Company.

Available in PET 500ml and 1000ml.

KINLEY SODA:-

Kinley soda water is carbonated water. Kinley soda can be enjoyed on the rocks and mixed with other

hard drinks. It blends well with all drinks, and in fact, it can be consumed by itself. Hindustan Coca

Cola Beverages Pvt. Ltd. (HCCBPL) is the bottling arm of Kinley sodas in India and is also involved

in the manufacture and distribution of its beverages in India.


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SALES CHART OF PRODUCTS

F ig 4:Sales Char t of Products


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LITERATUREREVIEW

This study on inventory management is being done on such a way that one can easily

understand and after reading this you have anxiety to know more about it same thing happens

with me.

Ms konkanna dass has detailed out the practices and policies adopted in the company and

highlighted noteworthy practices in her study. She has described recent trends in operations

in the areas chosen.

She also have identified a problem the company is facing, analyzed it and have suggested a

solution for the same.

The Coca-Cola Company is the worlds largest beverage company. It is recognized as the

worlds most valuable brand. It markets four of the worlds top five soft drink brands like

Diet Coke, Fanta, and Sprite along with water, juices, tea, coffee and energy drinks. It has

one of the worlds largest beverage distribution systems spread over 200 countries selling 1.6

billion servings a day.

Coca-Cola India manufactures and markets brands like Coca-Cola, Thums Up, Fanta, Fanta

Apple, Limca, Sprite, Mazaa, Minute Maid, Burn, Kinley, Georgia tea and coffee, Nestea and

Fanta Fun Taste. The company employs 1, 50,000 people and has more than 1 million

retailers. It is the largest domestic buyer of sugar and one of the top buyers of mango pulp. It

positively impacts Glass, Plastic, Resin manufacturers, Sugar, Automobiles, and Banking etc.

Its mission statement is called the Coca-Cola Promise The Coca-Cola Company exists to

benefit and refresh anyone that it touches. This project report is about Coca-Colas supply

chain with respect to its inventory, quality and vendor management.

By going through this study I highly motivated to know more about the company working

style and challenges which they faces on daily basis. Thanks to my institute I got a chance to

work with Hindustan coca cola beverages pvt ltd where I got the project counter mountain

dew this will help me to know about the sales and distribution of beverages in India.


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4. About Project


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ABOUT PROJECT:

The work assigned was to analyze and enhance the market opportunities for Coca Cola in

Jaipur, by creating awareness to retailers about the brand value, profit ratio and to find out the

factors which are creating impediment in its expansion.

Thus project was divided in to two parts: -

F ir st Part: -

Analyze the needs and wants of existing retailers (customers).

Find out the problems faced by them while doing business with Coke.

Reasons of doing business with Coke.

For this survey on 180 existing outlets was done.

Second Part: -

Find out the reasons for not doing business with Coke from new retailers (customers).

For this survey on 100 new outlets was done.

Data Coll ection:

Data was collected from different locations of Jaipur as: -

Sindhi Colony

Adarsh Nagar

Tonk Road

Hassanpura

Raja Park

Jawahar Nagar

Janata Colony

Nandpuri

Railway Station

Vaishali Nagar


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TYPES OF EXPANSION:

Expansion can be done both vertically & horizontally and for this different questionnaires

were prepared for both existing and new retailers.

Vertically expansion:

It means increasing the existing outlets capacity of sales. There are following techniques used

in vertical expansion:

RED ( Right Execution Daily)

PJP (Pre Journey Planner)

Pre Sell

Horizontal expansion:

It means opening new outlets. It is done to increase the market share and to increase the

visibility of product in the market which will ultimately lead to higher sales volume and

larger market share.

Reasons for hor izontal expansion :

F igur e 5: Opportuni ty to new outlets

Above data shows that Coke is far behind f rom i ts competitors in case of market coverage

thus huge potenti al for expansion .


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Benefi ts of H orizontal Expansion:

Improves profitability of distributors

Helps improve route productivity

Incremental revenue for the business Helps in distributing the market demand

Increase market visibility

Advantage of H orizontal Expansion over Vertical Expansion:

Both expansion techniques are meant for increasing sales volumes. But in horizontal

expansion company can earn more profits by spending less . Lets see the profit story of

horizontal expansion.


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5. Methodology


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In Rajasthan Jaipur is the main city from where all the products are sent in different cities

According to the distributers demand. Companies officials working in each cities who makes

sales and kept an eye on stock of distributer.

They convinced distributer and retailer for secondary i.e. sales. A.S.M is the responsible

person who got one area under which 7-8 cities are allotted to him he work with his team and

target his market according to company guidelines.

There are 450 distributers in Rajasthan.

Data Collection Methods:

Personal i nteraction method:

I made interactions with some retailers during market survey, who want to give some extra

information other than questionnaire and who were busy and not ready to fill the

questionnaire. This was conducted without the help of any questionnaire. The objective was

to draw a general understanding about their problems, performance of the distributer, their

preferences and other useful information. This technique helped to clear doubts arising due to

observation method.

Questionnair e method:

Questionnaire was divided in two parts. First part was for exiting retailers (customers). Theother part was for new retailers. The basic aim of both was to analyze the psychology, need &

wants of retailers.

Sampling Unit:

The retailers of Grocery shop, E & D, Convenience shop, Medicine store and Juice

corners was selected from different places of Jaipur .

Sampling Size: 150 Outlets.

Sampling procedure:

As Coke has mainly three types of modules of customers as: - Grocery store,

Convenience store & E&D with different grades so sampling size was divided

according to area, type of store & VPO of the store .

Sampling method:Data were collected by retailer survey. The retailers were directly


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contacted and interviewed at their retail counter.

6. Analysis &

Results


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ANALYSIS:

Survey Analysis:

The survey was conducted in different location of Jaipur. A total survey of 150 outlets was

conducted. Out of 150 outlet 100 was bronze outlet and rest of 50 was new outlet.

Observational Analysis:

1. I visited about 250 outlets.2. Out of 250 shops covered in different areas, I focused on covering different shops according to

location, so that I can know where coca-cola products have the best penetration. Among the

shop covered, 17% were on the cross roads, 35% were on the main road, 28% in the market

and 20% were near a residential area.

3. I assigned the various shops covered into different categories. The various categories coveredwere Grocery, Confectionary, Bakery, Juice Shops, Ice Cream parlors, Restaurant, Food

Points, Dairy, and Pan Shops.

Findings:

Here are some basic factors which affects the sale of coke brands as well as horizontalexpansion.

1. Which beverage brand you sell in the market?

COKE PEPSI OTHERS MIX

37%

25%

17%21%

BRAND SOLD IN THE MARKET

BRAND SOLD IN THE MARKET


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Chart 1:Brand sold in market

I nterpretation:

As per the above question many of the retailers prefer selling both the brands but many find

it difficulty in affording the visi cooler cost but mostly the outlets that are single brandoriented prefer selling Coke, because the quality is believed to be high as compared to other

brands.

2.Which pack would you prefer for sale in terms of profit margin?

Chart 2:Pack preferr ed for prof it margin

I nterpretation:

The pack size demand and it type depended on factors of whether the shop was E&D type or

IC ,FC shop if it was a restaurant bar they preferred purchase of 600ml as there was no risk

from broken bottles on the other hand small areas preferred 200ml as it costs less and can

give a big margin.

Coke got the big market from RGB and PET bottles. That too in RGB sector 200ml was the

most selling pack. Coming to PET bottles all have the probable equal share but 600ml was

little bit high sale when comparing with 1ltr 1.5ltr and 2ltr packs.

0%

5%

10%

15%

20%

25%

30%

200ML 300ML 600ML 1.25LTR 2.25LTR

20%

17%

26%

20%

17%

PACK PREFERRED FOR PROFITMARGIN

PACK PREFERRED FOR

PROFIT MARGIN


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3. Which pack variant is more in demand?

Chart 3: Pack variant more in demand

I nterpretation:

Coke got the big market from RGB and PET bottles. Tetra pack was consumed in large

quantities because of the demand as per the season. RGB sector was the most selling pack.

Coming to PET bottles all have the equal share but 600ml was little bit high sale when

comparing with 1ltr 1.5ltr and 2ltr packs.

4. Which brand you basically prefer for sale in your outlet?

0%

10%

20%

30%

40%

50%

60%

RGB PET

BOTTLES

TETRA

PACKS

TIN CANS

30%

18%

52%

0%

PACK VARIANT MORE IN DEMAND

PACK VARIANT MORE IN

DEMAND

CO FA LI SP TH MZ

16%

10%

17%13%

26%

18%

PRODUCT RANGE OF COKE

PREFERRED FOR SALE

PRODUCT RANGE OF COKE PREFERRED FOR SALE


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Chart 4: Product range of coke preferr ed for sale

I nterpretation:

Coming to most selling brand in Jaipur city Thums up occupied majority of the market share

is grabbed by Thums up only after that Maaza is the 2nd major selling brand from the coke

after those Limca and Coke listed.

5. You basically keep brands according to?

Chart 5: Brands Oriented decisions

I nterpretation:

Whatever the present varieties coke had in the market with those consumers are very much

happy. For this question maximum retailers said yes they keep the brands as per their

requirement of their customers. Coke getting more appreciation in this concept.

But there were also those retailers who demanded the brands as per the schemes if they felt

the new MER could benefit them they waited back for slab schemes to be opened, and were

least bothered about their customers requirement.

84%

16%

BRANDS ACCORDING TO

CUSTOMER DEMAND SCHEME-FOCUSSED


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6. Do you ask for schemes while purchasing a particular pack of CSD?

Chart 6:Asking Schemes

I nterpretation:

Schemes were given by the Coca-Cola Co. to boost up the sales and generally it was provided

to benefit the retailers and to increase their margin, therefore it was expected from most of the

retailers that they always ensured whether the salesman is giving the appropriate scheme and

is it benefitting him or not.

7. What are other factors which affects sell?

Chart 7:Factors aff ects cold dri nk demand

98%

2%

ASKING SCHEMESYES NO

Factors affects cold drink demand


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o WEATHER-58%

o CONSUMER TASTE10%

o PRICE32%

I nterpretation:

On the basis of my survey I found that weather is the most critical factor in the demand of

cold drink. On the basis of my exploratory research I found that consumer taste and price are

other two important factors but weather is the most important among them.

RESULTS:

In Jaipur Area Company governs from its regional office. Jaipur is divided among 5 STL(Sales Team Leader) and 6 MD (Market Developer) assigned to each STL. Most of the MD

look after its cooler outlet. As an intern I had job to increase market share of Hindustan Coca-

Cola Beverages Private Limited (Jaipur) and improve the current market position of company

& to develop new outlets as well as to maintain the output from existing Bronze Outlets.

F inding of M y Project:

Average per vehicle sale is 100 crate per day there are 15 vehicles running on daily basis per

day sale is 1500 caret. A city where we are market challenger with 45 % share its remarkable

that Coca-Cola sales 600 caret per day by this we can see how big market potential Jaipur has.

In duration of 45 days of internship I visited around 250 shops and sold 700 carets of different

product of Coca-Cola. These product prices ranges from Rs. 168 to Rs. 716. So average per

caret is cost around Rs. 422.

So I added 422700 =Rs. 2,95,400 in company sales revenue during duration.

As well as I added around 50 new outlets in company database.


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F ig 7: Impact of new outlets on business

F ig 8: I mpact of new outlets on distri butors

So here by above tables we can understand the effect of new outlets on both business as well

as on distributors in terms of better margin, more return & increased ROI.


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CONCLUSION:

On an overview I conclude my report on the following points:

Jaipur market is a big market & it contribute high demand of cold drink in the market.

Coca-Cola market goodwill is very high but still Pepsi & others market challenger with 45 %

share the reason behind this is the scheme which they offer in Jaipur. On comparison with

Pepsi its very low therefore retailers are prefer Pepsi over Coca-Cola in Jaipur

Bronze Outlets and New Outlets holds a good potential of business so its very important to

take care of them. So we need to focus on following points.

Effective supply chain strategies within the city

Avoid scheme alteration on daily basis

Must offer some special benefits to new and potential outlets like banners, coolers,

stands etc.

In supply chain biggest drawback is salesman who do injustice with schemes as schemes is

being alter on daily basis he pitch retailers constant scheme which leads to decrease in

company goodwill. Sales team leader the person who is person appointed from the company

in the city must take the follow up so that nobody can took such advantage.

By doing so Coca-Cola can become market leader in Jaipur.


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RECOMMENDATION

Pre-orders must be taken to sought the problem of retailers want something and get

something else.

Cooler must being pulled back from those outlets that are not taken our products and

allotted to those who is ready to sell our products.

We must gave initial benefits to those outlets who is ready to sell our products this

will build the trust.

Sprite is the one brand which is most demanded in our portfolio so we must do

something like allotted it in schemes instead of Coke.

Sales man follow up - Sales man is the big problem because they do not convey the

right schemes to retailers so we must follow up them so that retailers got the good

margin and they started pitching our products.

Schemes must had pre deadline so that we can tell retailers that this offer is valid till

this date because of daily fluctuation retailers do not have much trust and many time

chaotic situation arises.

Easy cooler transfer there is many formalities to give cooler and also in pulled them

back so we must cut down those formalities this will motivate employees then they

can do optimum utilization of coolers in the city. In schemes we must gave other flavor too instead of Coke and we can easily do this.

Sales man is not bother about new outlets opening therefore md (market developer) is

being allotted so they must open one new outlet in a day this will increases the market

size.

Route must be re-design in such a manner that one vehicle should cover his whole

route in one day.


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REFERENCES

Websites:

www.cocacolaindia.comOfficial website of Hindustan Coca-Cola India pvt ltd.

Others:

Annual Report Coca-Cola 2012.
http://www.cocacolaindia.com/http://www.cocacolaindia.com/http://www.cocacolaindia.com/


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ANNEXURE

RETAILERS

(IN JAIPUR REGION)

JAIPURIA INSTITUTE OF MANAGEMENTQUESTIONNAIRE

Name of the shop:

Name of the owner: .

PH no:.

1. Which beverage brand you sell in the market?a) Coke

b) Pepsi

c) Coke/Pepsi

d) Coke/Pepsi/Others

2. Which pack would you prefer for sale in terms of profit margin?a)

200/300mlb) 600ml

c) 1.25l

d) 2.25l

3. Which pack variant is more in demand?a) RGBs

b) PET BOTTLES

c) TETRA PACKS

d) TIN CANS

4. Which product range of coke you basically prefer for sale in your outlet?a) THUMSUP

b) COKE

c) MAAZA

d) FANTA

e) LIMCA

f)

SPRITE


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5. You basically keep brands according toa) Customers demand

b) Scheme focused

6. Do you ask for schemes while purchasing a particular pack of CSD?a) yes

b) no

7. An Average Sales per Day (No. of Case):8. An Average Sales per Month (No. of Case):9. Are you happy with the schemes given by coca cola?

a)

Yes

b) No

10.According to you company should improve upon?a)Distribution system

b)Sales promotion

c)Schemes

d)Services ( Like replacement of bottles expiry bottles)

11. Have you ever felt cheated by the salesman on schemes?a)Yes

b)No

c)Sometimes

12.What are the reasons of not doing business with Coke?a) Never approached by the company

b) Less Demand

c) Profitability

d) Company Policies

e) Competition from the nearby outlet

f)

Distribution system


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g) Lack or space in shop Non Suitability

h) Any other

13.Why you do business with Coke, give reasons for keeping it.a) Brand Value

b) Better scheme

c) High Demand

d) Good Supply

e) High Profit Margin

f) Good Service Quality

14.Rate the most important factor in cold drink demand(Rate the factor on 7 point scale where 1 is least and 7 is maximum)

a) Weather

b) Price

c) Consumer taste


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coca cola sip report prateek

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