coke peoject report
TRANSCRIPT
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A Project Report on
The impact of sales promotion for the business
Submitted for the Partial Fulfillment of
Master of Business Administration(MBA)
DR.M.C.SAXENA COLLEGE OF ENGNEERING
& TECHNOLOGY, LUCKNOW
Under The Guidance of:-
xxx
Submitted By:-
xxx
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DECLARATION
I xxx, Roll no. xxx, a student of MBA III semester, xxx hereby declares that I
have successfully completed my summer training project report on THE IMPACT OF
SALES PROMOTION FOR THE BUSINESS from ADVANCE SALES &
SERVICES PVT. LTD., LUCKNOW. I hereby declare that all the information
provided in this project report are true to the fullest of my knowledge and it bear no
resemblance to any other written material whatsoever.
In the event of any information provided in this report being found incorrect or
misleading, I shall be liable to any outcome at any at any given day.
Place: LUCKNOW
Date:
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ACKNOWLEDGEMENT
I would like to thank the almighty god for the blessing he has given to me to
complete this project work successfully. The objective of summer training is to
provide us with as opportunity to experience the aspect of management in an
organization. Who arranges and guides me in summer training. I would like to
express my heart full gratitude xxx), who helped me in sharpening my thinking by
cheerfully providing challenging comments and questions. Without the individuals
have provided, this project would have lost much of its refreshing realism.
Im also thankful to xxx & all employees of xxx who gave me sufficient co-
operation and guidance to me during my summer training. Their knowledge and
practical suggestions helped me to seek & understand the marketing scenario of
Coca-Cola.
Last but not the least I would like to thanks my parents for their blessings, which
they always showers upon me.
xxx
PREFACE
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Practical and Theory are the two aspects of Management education. The practical
training in the domain of management courses has received vital importance. It
exposes to the potential manager towards the actual work situation and gives a
student rich insight into what practically is going on inside the industries, infect it
is the implementation of theory into practices which is the life force ofmanagement.
45days practical training is an obligatory requirement for the M.B.A. It was of
great advantage to receive practical training in xxx At LUCKNOW office. The
management of the company offered an excellent learning situation. There have
been considerable changes in the technology, operation and structure of the
industry due to globalization, mergers, environmental issues and available fiber
sources, and new challenges being posed by the changing customer satisfaction
levels and multiple market requirements are forcing industry to adapt to newsolutions.
CONTENTS
TABLE OF CONTENTS
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Title page
Declaration
Acknowledgement
Preface
Part-1
INDUSTRY & COMPANY PROFILE
Founder Profile of Coca-Cola.
President Profile.
Industry Background
Company background
Organization Chart
Sponsorship and marketing.
Product Range.
Business Overview
Distribution Channel
RED
Sales and distribution
Competitors
Part- 2
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THE PROJECT PROFILE
Introduction of the topic.
Research Objective.
Research Methodology.
Research Design.
Method of Data Collection.
Sampling Plan
Data Analysis & Interpretation.
Findings SWOT Analysis.
PART- 3
Suggestions & Recommendations.
Conclusions.
Limitations.
Questionnaire.
Bibliography
Word of Thanks.
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PART-1
FOUNDER OF COCA-COLA
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Type :Soft Drink (Cola)
Area served :Over 200 countries
Color : Caramel E-150d
Employees:92,400 Servings per Day:1.6 Billion
Website :w w w.coca-cola.com
Coca-Cola, the product that has given the world its best-known taste was born inAtlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leadingmanufacturer, marketer and distributor of non-alcoholic beverage concentrates andsyrups, used to produce nearly 400 beverage brands. It sells beverage concentratesand syrups to bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. The Companys beverage products comprises of bottled andcanned soft drinks as well as concentrates, syrups and not ready- to-drink powderproducts. In addition to this, it also produces and markets sports drinks, tea andcoffee. The Coca- Cola Company began building its global network in the 1920s.Now operating in more than 200 countries and producing nearly 400 brands, theCoca-Cola system has successfully applied a simple formula on a global scale:
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Provide a moment of refreshment for a small amount of money- a billion times aday.
The Coca-Cola Company and its network of bottlers comprise the mostsophisticated and pervasive production and distribution system in the world. More
than anything, that system is dedicated to people working long and hard to sell theproducts manufactured by the Company. This unique worldwide system has madeThe Coca-Cola Company the worlds premier soft-drink enterprise. From Bostonto Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumerproduct, has brought pleasure to thirsty consumers around the globe. For more than115 years, Coca-Cola has created a special moment of pleasure for hundreds ofmillions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by workingwith 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 aimat managing their business well with people who are strongly committed to the Company valuesand culture and providing an appropriately controlled environment, to meet business goals andobjectives. The associates of this Company jointly take responsibility to ensure compliance withthe framework of policies and protect the Companys assets and resources whilst limitingbusiness risks.
PRESIDENTS PROFILE:-
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Muhtar Kent is Chairman of the Board and Chief Executive Officer of The Coca-
Cola Company.
Mr. Kent joined The Coca-Cola Company in Atlanta in 1978 and has held a varietyof marketing and operations roles throughout his career. In 1985, he was appointed
General Manager of Coca-Cola Turkey and Central Asia. From 1989 to 1995, he
served as President of the Company's East Central Europe Division and Senior
Vice President of Coca-Cola International, with responsibility for 23 countries.
Between 1995 and 1998, Mr. Kent served as Managing Director of Coca-
Cola Amatil Limited - Europe, covering bottling operations in 12 countries. From
1999 until his return to The Coca-Cola Company in May 2005, he served as
President and CEO of the Efes Beverage Group, a large publicly held BeverageCompany which was also the majority shareholder of Coca-Cola Icecek, A.S.,
currently and the sixth largest bottler in the Coca-Cola system.
Mr. Kent was President and Chief Operating Officer of The Coca-Cola Company's
North Asia, Eurasia and Middle East Group from 2005 until early 2006, where he
was responsible for the operations across a broad and diverse geographic region
that included China, Japan and Russia. He served as President of Coca-
Cola International from February 2006, responsible for operations outside of North
America, until his appointment in December 2006 as President and ChiefOperating Officer of The Coca-Cola Company, overseeing all operations of the
business.
Mr. Kent became Chief Executive Officer of the Company on July 1, 2008, and
Chairman of the Board of Directors on April 23, 2009.
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Mr. Kent holds a Bachelor of Science degree in Economics from Hull University,
England, and a Master of Science degree in Administrative Sciences from CASS
business school at City University in London. He also holds an Honorary
Doctorate Law degree from Oglethorpe University in Atlanta and an
honorary doctorate degree in Economics from the University of Hull.
Mr. Kent is a fellow of the Foreign Policy Association, co-chair of The
Consumer Goods Forum, a member of the Business Roundtable, and a
member of the Special Olympics International Board of Directors. He is
also the Chairman of the U.S.-China Business Council and Chairman of the
U.S.-ASEAN Business Council
Indian History
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India is home to one of the most ancient cultures in the world dating back
over 5000 years. At the beginning of the twenty-first century, twenty-six
different languages were spoken across India, 30% of the population knew
English, and greater than 40% were illiterate. At this time, the nation was in
the midst of great transition and the dichotomy between the old India andthe new was stark. Remnants of the caste system existed alongside the
worlds top engineering schools and growing metropolises as the
historically agricultural economy shifted into the services sector. In the
process, India had created the worlds largest middle class, second only to
China. A British colony since 1769 when the East India Company gained
control of all European trade in the nation, India gained its independence in
1947 under Mahatma Gandhi and his principles of non violence and self-
reliance. In the decades that followed, self-reliance was taken to theextreme as many Indians believed that economic independence was
necessary to be truly independent. As a result, the economy was
increasingly regulated and many sectors were restricted to the public
sector. This movement reached its peak in 1977 when the Janta party
government came to power and Coca-Cola was thrown out of the country.
In 1991, the first generation of economic reforms was introduced and
liberalization began.
The Indian Beverage Market
Indias one billion people, growing middle class, and low per capita
consumption of soft drinks made it a highly contested prize in the global
CSD market in the early twenty-first century. Ten percent of the countrys
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population lived in urban areas or large cities and drank ten bottles of soda
per year while the vast remainder lived in rural areas, villages, and small
towns where annual per capita consumption was less than four bottles.
Coke and Pepsi dominated the market and together had a consolidated
market share above 95%. While soft drinks were once considered productsonly for the affluent, by 2003 91% of sales were made to the lower, middle
and upper middle classes. Soft drink sales in India grew 76% between
1998 and 2002, from 5,670 million bottles to over 10,000 million and were
expected to grow at least 10% per year through 2012. In spite of this
growth, annual per capita consumption was only 6 bottles versus 17 in
Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United
States.
With its large population and low consumption, the rural market
represented a significant opportunity for penetration and a critical
battleground for market dominance. In 2001, Coca-Cola recognized that to
compete with traditional refreshments including lemon water, green
coconut water, fruit juices, tea, and lassi, competitive pricing was essential.In response, Coke launched a smaller bottle priced at almost 50% of the
traditional package.
Marketing Cola in India
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The post-liberalization period in India saw the comeback of cola but Pepsi
had already beaten Coca-Cola to the punch, creatively entering the market
in the 1980s in advance of liberalization by way of a joint venture. As early
as 1985, Pepsi tried to gain entry into India and finally succeeded with the
Pepsi Foods Limited Project in 1988, as a JV of PepsiCo, Punjabgovernment-owned Punjab Agro Industrial Corporation (PAIC), and Voltas
India Limited. Pepsi was marketed and sold as Lehar Pepsi until 1991
when the use of foreign brands was allowed under the new economic
policy and Pepsi ultimately bought out its partners, becoming a fully-owned
subsidiary and ending the JV relationship in 1994.
While the joint venture was only marginally successful in its own right, it
allowed Pepsi to gain precious early experience with the Indian market and
also served as an introduction of the Pepsi brand to the Indian consumer
such that it was well-poised to reap the benefits when liberalization came.
Though Coke benefited from Pepsi creating demand and developing the
market, Pepsis head-start gave Coke a disadvantage in the mind of the
consumer. Pepsis appeal focused on youth and when Coke entered India
in 1993 and approached the market selling an American way of life, it failed
to resonate as expected.
2001 Marketing Strategy
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Coca-Cola CEO Douglas Daft set the direction for the next generation of
success for his global brand with a Think local, act local mantra.
Recognizing that a single global strategy or single global campaign
wouldnt work, locally relevant executions became an increasingly
important element of supporting Cokes global brand strategy.
In 2001, after almost a decade of lagging rival Pepsi in the region, Coke
India re-examined its approach in an attempt to gain leadership in the
Indian market and capitalize on significant growth potential, particularly in
rural markets. The foundation of the new strategy grounded brand
positioning and marketing communications in consumer insights,
acknowledging that urban versus rural India were two distinct markets on a
variety of important dimensions. The soft drink categorys role in peopleslives, the degree of differentiation between consumer segments and their
reasons for entering the category, and the degree to which brands in the
category projected different perceptions to consumers were among the
many important differences between how urban and rural consumers
approached the market for refreshment.
In rural markets, where both the soft drink category and individual brands
were undeveloped, the task was to broaden the brand positioning while in
urban markets, with higher category and brand development, the task wasto narrow the brand positioning, focusing on differentiation through offering
unique and compelling value. This lens, informed by consumer insights,
gave Coke direction on the
Tradeoff between focus and breadth a brand needed in a given market and
made clear that to succeed in either segment, unique marketing strategies
were required in urban versus rural India.
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History of Coke
The Early Days
Coca-Cola was created in 1886 by John Pemberton, a pharmacist inAtlanta, Georgia, who sold the syrup mixed with fountain water as a potion
for mental and physical disorders. The formula changed hands three more
times before Asa D. Candler added carbonation and by 2003, Coca-Cola
was the worlds largest manufacturer, marketer, and distributor of non-
alcoholic beverage concentrates and syrups, with more than 400 widely
recognized beverage brands in its portfolio.
First Version of Bottle been produced in 1906With the bubbles making the difference,
Coca-Cola was registered as a
trademark in 1887 and by 1895, was
being sold in every state and territory in
the United States. In 1899, it franchised
its bottling operations in the U.S.,
growing quickly to reach 370 franchisees
by 1910.10 Headquartered in Atlanta
with divisions and local operations in
over 200 countries worldwide, Coca-
Cola generated more than 70% of its income outside the United States by
2003.
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International expansion
Cokes first international bottling plants opened in 1906 in Canada, Cuba, andPanama. By the end of the 1920s Coca-Cola was bottled in twenty-seven countriesthroughout the world and available in fifty-one more. In spite of this reach, volumewas low, quality inconsistent, and effective advertising a challenge with language,culture, and government regulation all serving as barriers. Former CEO RobertWoodruffs insistence that Coca-Cola wouldnt suffer the stigma of being anintrusive American product, and instead would use local bottles, caps, machinery,trucks, and personnel contributed to Cokes challenges as well with a lack of
standard processes and training degrading quality. Coca-Cola continued workingfor over 80 years on Woodruffs goal: to make Coke available wherever andwhenever consumers wanted it, in arms reach of desire. The Second World Warproved to be the stimulus Coca-Cola needed to build effective capabilities aroundthe world and achieve dominant global market share. Woodruffs patrioticcommitment that every man in uniform gets a bottle of Coca -Cola for five cents,
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wherever he is and at whatever cost to our company was more than just greatpublic relations. As a result of Cokes status as a military supplier, Coca-Cola wasexempt from sugar rationing and also received government subsidies to buildbottling plants around the world to serve WWII troops.
Turn of the Century Growth ImperativeThe 1990s brought a slowdown in sales growth for the Carbonated SoftDrink (CSD) industry in the United States, achieving only 0.2% growth by2000 (just under 10 billion cases) in contrast to the 5-7% annual growthexperienced during the 1980s. While per capita consumption throughoutthe world was a fraction of the United States, major beverage companiesclearly had to look elsewhere for the growth their shareholders demanded.
The looming opportunity for twenty-first century was in the worldsdeveloping markets with their rapidly growing middle class populations.
The Worlds Most Powerful Brand
Interbreeds Global Brand Scorecard for 2003 ranked Coca-Cola the #1Brand in the World and estimated its brand value at $70.45 billion (SeeExhibit 4). The rankings methodology determined a brands valuation onthe basis of how much it was likely to earn in the future, distilling thepercentage of revenues that could be credited to the brand, and assessingthe brands strength to determine the risk of future earnings forecasts.Considerations included market leadership, stability, and global reach,
incorporating its ability to cross both geographical and culturalborders. From the beginning, Coke understood the importance of brandingand the creation of a distinct personality. Its catchy, well-liked slogans (Itsthe real thing (1942, 1969),
Things go better with Coke (1963), Coke is it (1982), Cant beat theFeeling (1987), and a 1992 return to Cant beat thereal thing) linked that
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personality to the core values of each generation and established Coke asthe authentic, relevant, and trusted refreshment of choice across thedecades and around the globe.
Coke in IndiaCoca-Cola was the leading soft drink brand in India until 1977 when it leftrather than reveals its formula to the government and reduces its equitystake as required under the Foreign Exchange Regulation Act (FERA)which governed the operations of foreign companies in India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presencewith a deal that gave Coca-Cola ownership of the nation's top soft-drinkbrands and bottling network. Cokes acquisition of local popular Indian
brands including Thums Up (the most trusted brand in India), Limca,Maaza, Citra and Gold Spot provided not only physical manufacturing,bottling, and distribution assets but also strong consumer preference. Thiscombination of local and global brands enabled Coca-Cola to exploit thebenefits of global branding and global trends in tastes while also tappinginto traditional domestic markets. Leading Indian brands joined the
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Company's international family of brands, including Coca-Cola, diet Coke,Sprite and Fanta, plus the Schweppes product range. In 2000, thecompany launched the Kinley water brand and in 2001, Shock energy drinkand the powdered concentrate Sunfill hit the market. From 1993 to 2003,Coca-Cola invested more than US$1 billion in India, making it one of thecountrys top international investors. By 2003, Coca-Cola India had won theprestigious Woodruf Cup from among 22 divisions of the Company basedon three broad parameters of volume, profitability, and quality. Coca-ColaIndia achieved 39% volume growth in 2002 while the industry grew 23%nationally and the Company reached breakeven profitability in the regionfor the first time. Encouraged by its 2002 performance, Coca-Cola Indiaannounced plans to double its capacity at an investment of $125 million(Rs.750crore) between September 2002 and March 2003. Coca-Cola Indiaproduced its beverages with 7,000 local employees at its twenty-seven
wholly owned bottling operations supplemented by seventeen franchisee-owned bottling operations and a network of twenty-nine contract-packers tomanufacture a range of products for the company. The completemanufacturing process had a documented quality control and assuranceprogram including over 400 tests performed throughout the process.
The complexity of the consumer soft drink market demanded a distributionprocess to support 700,000 retail outlets serviced by a fleet that includes 10ton trucks, open-bay three wheelers, and trademarked tricycles andpushcarts that were used to navigate the narrow alleyways of the cities. Inaddition to its own employees, Coke indirectly created employment foranother 125,000 Indians through its procurement, supply, and distributionnetworks.
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Brand Localization Strategy: The Two Indias
India A: Life ho to aisiIndia A, the designation Coca-Cola gave to the market segment including
metropolitan areas and large towns, represented 4% of the countrys
population. This segment sought social bonding as a need and responded
to inspirational messages, celebrating the benefits of their increasing social
and economic freedoms. Life ho to aisi, (life as it should be) was the
successful and relevant tagline found in Coca-Colas advertising to thisaudience.
India B: Thanda Matlab Coca-ColaCoca-Cola India believed that the first brand to offer communication
targeted to the smaller towns would own the rural market and went after
that objective with a comprehensive strategy. India B included small
towns and rural areas, comprising the other 96% of the nations population.
This segments primary need was out-of-home thirst-quenching and the
soft drink category was undifferentiated in the minds of rural consumers.
Additionally, with an average Coke costing Rs.10 and an average days
wages around Rs. 100, Coke was perceived as a luxury that few could
afford.
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In an effort to make the price point of Coke within reach of this high-
potential market, Coca- Cola launched the Accessibility Campaign,
introducing a new 200ml bottle, smaller than the traditional 300ml bottle
found in urban markets, and concurrently cutting the price in half, to Rs. 5.
This pricing strategy closed the gap between Coke and basic refreshments
like lemonade and tea, making soft drinks truly accessible for the first time.
At the same time, Coke invested in distribution infrastructure to effectively
serve a disbursed population and doubled the number of retail outlets in
rural areas from 80,000 in 2001 to 160,000 in 2003, increasing market
penetration from 13 to 25%.
Cokes advertising and promotion strategy pulled the marketing plan
together using local language and idiomatic expressions. Thanda,
meaning cool/cold is also generic for cold beverages and gave Thanda
Matlab Coca-Cola delicious multiple meanings. Literally translated to
Coke means refreshment, the phrase directly addressed both the primary
need of this segment for cold refreshment while at the same timepositioning Coke as a Thanda or generic cold beverage just like tea, lassi,
or lemonade. As a result of the Thanda campaign, Coca-Cola won
Advertiser of the Yearand Campaign of the Yearin 2003.
Rural SuccessComprising 74% of the country's population, 41% of its middle class, and
58% of its disposable income, the rural market was an attractive target and
it delivered results. Coke experienced 37% growth in 2003 in this segment
versus the 24% growth seen in urban areas. Driven by the launch of the
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new Rs. 5 product, per capita consumption doubled between 2001-2003.
This market accounted for 80% of Indias new Coke drinkers, 30% of 2002
volume, and was expected to account for 50% of the companys sales in
2003.
Corporate Social ResponsibilityAs one of the largest and most global companies in the world, Coca-Cola
took seriously its ability and responsibility to positively affect the
communities in which it operated. The companys mission statement, called
the Coca-Cola Promise, stated: The Coca-Cola Company exists to benefit
and refresh everyone who is touched by our business. The Company has
made efforts towards good citizenship in the areas of community, by
improving the quality of life in the communities in which they operate, and
the environment, by addressing water, climate change and waste
management initiatives. Their activities also included The Coca-Cola Africa
Foundation created to combat the spread of HIV/AIDS through partnershipwith governments, UNAIDS, and other NGOs, and The Coca-Cola
Foundation, focused on higher education as a vehicle to build strong
communities and enhance individual opportunity.
Coca-Colas footprint in India was significant as well. The Company
employed 7000 citizens and believed that for every direct job, 30-40 more
were created in the supply chain. Like its parent, Coke Indias Corporate
Social Responsibility (CSR) initiatives were both community and
environment-focused. Priorities included education, where primary
education projects had been set up to benefit children in slums and
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villages, water conservation, where the Company supported community-
based rainwater harvesting projects to restore water levels and promote
conservation education, and health, where Coke India partnered with
NGOs and governments to provide medical access to poor people through
regular health camps. In addition to outreach efforts, the company
committed itself to environmental responsibility through its own business
operations in India including.
Environmental due diligence before acquiring land or starting projects
Environmental impact assessment before commencing operations
Ground water and environmental surveys before selecting sites.
Compliance with all regulatory environmental requirements
Ban on purchasing CFC-containing refrigeration equipment
Waste water treatment facilities with trained personnel at all
company-owned bottling operations.
50% water savings in last seven years of operations
Product Quality:
Throughout all of companys operations in India, stringent quality
monitoring takes place covering both the source water we use as well as
our finished product. All of the water used for beverage manufacturing
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conforms to drinking water standards, making it safe and ensuring that it
meets the highest international standards, including BIS and EU standards
for drinking water.
Company also tests for traces of pesticide in groundwater to the level of
parts per billion. This is equivalent to one drop in a billion drops.
The Company takes great pride in the fact that company takes every
precaution to ensure that its products are world-class and safe for all
consumers.
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MISSION, VISION & VALUES
Our mission, vision and values outline who we are, what we seek to
achieve, and how we want to achieve it. They provide a clear direction for
our Company and help ensure that we are all working toward the samegoals.
Everything we do is inspired by our enduring Mission:-
To Refresh the World in body, mind, and spirit.
To Inspire Moments of Optimism through our brands and our actions.
To Create Value and Make a Difference...everywhere we engage.To achieve
sustainable growth, we have established a Vision with clear goals:-
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People: Being a great place to
work where people are inspired to be the
best they can be.
Planet: Being a responsible global citizen that makes a difference.
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.
Profit: Maximizing return to shareowners while being mindful of our overall
responsibilities.
We are guided by shared Values that we will live by as a company and as
individuals:-
Leadership:
The courage to shape a better future.
Passion:Committed in heart and mind.
Integrity:
Be real
Accountability:
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If it is to be, it's up to me.
Collaboration:
Leverage collective genius
Innovation:
Seek, imagine, create, and delight
Quality:
What we do, we do well
ORGANIZATION STRUCTURE OF COCA-COLA
Chief Executive Officer
Vice President Supply Chain
Chief Finance Officer
Human Resource Director
Vice President BSG
Regional Vice President (North)
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ORGANIZATION STRUCTURE IN COCA-COLA, INIDA
Region VicePresident
AGM/AODUnit 1
AGM/AODUnit 2
AGM/AODUnit 3
AGM/AODUnit4
Region Finance
Region Human Resource
Region Customer Service
Region External Affairs
Region Cold Drink
Region Legal
Region BSG
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FIGURE: ORGANIZATION STRUCTURE IN COCA-COLA, INDIA
ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT
AGM/AOD
PlantManager
Route toMarket
HumanResourceManager
FinanceManager
GeneralSales
Manager
Area SalesManager
ChannelManager
AreaCapabilityManager
SalesExecutive
SalesTrainers
MarketDeveloper
Marketing
KeyAccounts
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FIGURE: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT
SPONSORSHIP AND MARKETING
The Marketing Mix is the name placed on the '4Ps' of marketing: Product, Place,
Price, and Promotion. It is this fourth element, Promotion, which is focused by
Coca Cola. This involves communicating the benefits of a product to increase sales
and ultimately profits. There are four main methods of promoting the benefits of a
brand.
Advertising
Personal Selling
Public Relations & Sponsorship (PR)
Sales Promotion
The combination of these four methods constitutes the Promotion Mix. Public
Relations is about communicating with the media to create good publicity for a
firm or its products. The media then communicate these activities to the public.
Public Relations one of the marketing department's functions is to manage public
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relations and maintain a positive and beneficial image of the firm's policies and
products. The aims of the Public Relations Manager liaising with the marketing
function are to:
Make the public aware of the existence of the firm and maintain the good name
And image of 'Coca-Cola' by issuing press releases, organizing news
conferences and informing the public about the firm's activity.
Maintain goodwill amongst the public for the company. Goodwill is the
likelihood that the existing customer will return and can be equated with brand
loyalty. Brand loyalty occurs when customers repeat-purchase a particular
branded product on a regular basis. 'Coca-Cola' has a high level of brand loyalty.
When you want a drink do you automatically pick up a bottle of 'Coca-Cola
.BRAND VALUE IN INTERNATIONAL EVENTS
Coca-Cola's powerfulBrand Personality has become a vehicle for promotion in its
own right, sponsoring many events both on a global and local level. The company
has long been associated with global events such as The Olympic Games, The
FIFA World Cup, Rugby World Cup and Special Olympics. Coke has also been
linked to world fairs and national exhibitions since 1905.
With the Olympics blossoming in popularity and complexity, increased attention
has been turned to serving the growing crowds and to supplying the needs of the
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athletes and organizing committees. In many countries where Olympic associations
lack full government sponsorship local bottlers of 'Coca-Cola' donate funds to aid
potential Olympians as the partnership of 'Coca-Cola' and the Olympics continues
to grow.
'Coca-Cola' was the official sponsor of the Olympics 2000 Games held in Sydney
maintaining an unbroken presence at the games since 1928. The company has
already contracted to sponsor both the summer and Winter Games through to 2008.
'Coca-Cola' was the official global sponsor of the Special Olympics held in Ireland
in 2003 (this was the first time the games had been hosted outside the US). As the
Olympic Movement's longest-standing corporate partner, 'Coca-Cola' has aided the
evolution of games together with more than 190 National Olympic Committees
assisting thousands of athletes in the entertaining.
BUSINESS OVERVIEW
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Coca Cola, the worlds most famous brand completing 121st year of its
existence on 8th May this year. Today the Company is an unquestionable leader in
the world business of non alcoholic beverages. CocaCola is the worlds largest
selling soft drink & arguably the most successful product ever marked in the
history of commerce. More than one billion serving of Coca Cola products are
consumed everyday around the world in more than 200 countries.
In India, Coca Cola operates through the Coca Cola India Division Office
situated at Gurgaon near New Delhi. Hindustan CocaCola Beverages Pvt. Ltd. is
the fully owned subsidiary of the Coca Cola India which runs a number of
bottling plants all over India.
The wasted generated during the manufacturing process are mainly waste water &
non hazardous solid waste in saleable and non saleable category. Saleable
waste includes broken glass, plastics, papers, gunny bags, metal scrap & other
miscellaneous waste. Obviously the saleable waste is recycled or reused as raw
material to businesses and industrial activities and has no adverse environmental
impact. Non saleable waste consists of biological ETP Sludge, used carbon,
garbage and canteen waste etc.
Manufacturing Process:
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The Coca Cola are committed to manufacture our products with utmost
care and with quality at top priority which makes it the world leader in soft
drink industry. Following is an over view of the stringent processes adopted
in manufacturing before our quality product reaches finally to our proud
consumers.
Water Treatment:
The company at follows a batch treatment process for water treatment which
includes Coagulation & flocculation. The method ensures disinfection and setting
of all macro impurities and thereafter it is passed to sand, carbon filters to remove
off odor, off color, off taste & thus it is strictly bought in line with the WHO
requirements. We are also using state of the art micron filtration process where
the water is filtered up to the extent of 1 micron before it is fed to the process.
This extensive treatment of water under strict monitoring & sampling for quality
leads to pure hygienic water with the highest quality meeting the Coca Cola
standards.
Syrup Preparation:
CocaCola uses the highest quality of sugar which is controlled & ensured by its
stringent prepaid standards, which serves as the strict criteria before acceptance of
a lot. To ensure high quality of syrup, it is subjected to hot treatment wherein it is
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given a contact time with hyflo and carbon at elevated temperatures. It is then
passes through a filter press which removes the carbon particles and other
impurities before it declared fit for Concentrate mixing.
In the ready syrup tank the predefined quantity of Concentrate is mixed to the
simple syrup in very strict hygienic conditions to yield final syrup.
Container Washing:
Container washing has been identified as one of the major critical control point in
the entire manufacturing process & thats the reason that company has laid some of
the very stringent & foolproof systems which ensures CocaCola product to be of
the highest quality & reflects our commitment towards delivering the best in class
product to the consumers.
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of unwashed bottles passes through the four pre wash
inspection, stations which ensures removal of rusty neck bottle excessively dirty
bottles, bottles carrying foreign matter, foreign bottles. And thus the good bottles
posses into the bottle washing machine which uses intensive mechanical &
chemical processes to clean and disinfect the bottles thoroughly and ensure that the
bottles to be ready for filling. However as an additional safety, there is again a post
wash inspection station comprising of 4 sub stations, which ensures removal of the
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chip necked bottles & suspected bottles from the lot. Thus the bottles are subjected
to series of stringent inspections before it is fed to the filler for filling
specifications. It is carried out by an Italian MachineMOJONNIER.
Filling & Crowning:
The chilled carbonated beverage fed by the MOJONNIER is filled into the
bottles through a rotary machine named FILLER. The bottles are immediately
crowned by crowner (adjacent to the filler ) and thereafter the bottles passes
through the Date Coding machine which enable the consumer to be 100 percent
sure of consuming a perfectly safe & fresh product.
Final Inspection:
After date coding, there is once again a final inspection station where light
inspectors remove all low or high filled bottles and permit only the saleable
product to pass through for casing to the caser machine.
Managing the waste water:
Production lines generate waste water from bottle washers, Syrup & Filler rooms.
Entire waste water generated is treated at Waste Water Treatment Plant and
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discharged through an 800 meters long pipeline specially laid to discharge treated
waste water away from inhabited areas. Part of this water is being used for
gardening purposes within the plant premises.
Market and Customers:
Once the finished product is ready it is transported to distribution centers and then
to retail outlets by way of route trucks. The consumers buy the soft drinks from the
retailer outlets. The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished product.
Suppliers and Other Business Partners:
Other than water and concentrate, bottling operation requires Sugar, CO2, bottles,
crates and other miscellaneous material. The Coca Cola India Division has a
Supplier authorization program where suppliers are authorized Based on a defined
criterion. Environmental considerations are amongst the critical of these criterions.
Employees, Salesman and Vehicles:
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The no. of total unit employees is approximately 113 in summer season, which is a
peak season for sale of soft drinks. The plant works for three shift operation
round the clock.
The overall educational level of the employees is good. Obviously, they have a
good expertise in water treatment & purification processes. Extensive in house
training programs are conducted to maintain the competency of the manpower in
respective areas.
Critical Success Factors As Perceived By The Organization:
Critical success factors that the company has identified are Product quality,
availability, affordability, and freshness of the product. In the words of Mr. Dough
Daft, The Coca Cola Company exists to benefit and refresh everyone who is
touched by our business.
The Company believes that good environmental performance & environmental
leadership will make its operations more efficient, cost effective and lead to high
quality product. It also believes that good environmental performance will enhance its
community relations & leadership in the market place.
The Eco policy clearly states that We will conduct our business in ways that protect,
preserve & enhance the environment.
In the words of Chairman of the CocaCola Company ..
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Implementation of Coca Cola Environment Management System, Eko system,
throughout our organization will help us to protect & grow our business through
continued environmental leadership. The management system should the part of the
annual business planning process of all groups, divisions & bottlers in our system. I
encourage all company associates to use the Eko system to help us continue to
improve our record of environmental excellence.
DISTRIBUTION CHANNEL IN LUCKNOW
At present, the Colas products are produced in the plant and its transferred to
various distributor throughout the according to demand and company target.
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HINDUSTAN COCA COLA BEVERAGES LTD.
Distributor Distributor C&F
Whole Seller Whole Seller Whole Seller
Retailers Retailers Retailers Retailers
CONSUMERS
ADVANCE SALES & SERVICES PVT. LTD., LUCKNOW
Segmented Market:
Geographical Segmentation Region Wise.
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Target Market:
Lucknow market according to the situation of CocaCola Plant.
BRAND IN INDIAN MARKET
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PROUCT PROFILE
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Coca-Cola serves in India some of the most recalled brands
across the worlds, which include names such as Coca-Cola, Diet
Coke, Sprite, Fanta, along with the Schweppes product range.
The acquisition of Thums Up brought some of the leading national
soft drinks like Thums Up, Limca, Maaza, Citra and Gold Spot
under its umbrella. To add to this, Kinley mineral water was
launched in the year 2000.
Thums up:-
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It is a leading carbonated soft drink and most trusted brand in India it wasintroduced in 1977, thumps up was acquired by the coca cola company in
1993. It is known for its strong, fizzy taste and its confident, mature and
uniquely masculine attitude. This brand clearly seeks to separate the men
from the boys.
Coca-Cola:-
Glass PET Can Fountain
200 ml, 300 ml, 500
ml, 1000 ml
500 ml, 1.5 L,
2 L, 2.25 L,
500 ml + 100 ml
330 ml Various Sizes
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Coca-Cola is the most popular and biggest-selling soft drink in history, as
well as the best-known product in the world. Coca-Cola was introduced in
1886, patented in 1887, registered as a trademark in 1893 and by 1895 it
was being sold in every state and territory in the United States. Today, you
can find Coca-Cola in virtually every part of the world.
Sprite:-
GLASS PET CAN FOUNTAIN
200 ml, 300 ml
600 ml, 1.5 L,
2 L, 2.25 L, 330 ml Various Sizes
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Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft
drink. Sprite is sold in more than 190 countries and ranks as the No. 4 soft
drink worldwide, with a strong appeal to young people. Millions of people
enjoy Sprite because of its crisp, clean taste that really quenches your
thirst. But Sprite also has an honest, straightforward attitude that sets it
apart from other soft drinks. Sprite encourages you to be true to who youare and to obey your thirst.
Glass PET Can Fountain
200 ml, 300 ml, 500 ml,
1000 ml
500 ml, 1.5 L,
2 L, 2.25 L,
500 ml + 100 ml
330 ml Various Sizes
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Limca:-
LIMCA'S FRESHNESS IS LIKE NOOTHER- 'LIME N LEMONI'
This thirst-quenching beverage features a fresh, light lemon-lime taste and fun-loving attitude. It's a home-grown, national treasure in India, where it was acquiredby The Coca-Cola Company in 1993. Limca continues to build a loyal followingamong young adults who love the lighthearted way it complements the bestmoments of their lives.Lime 'n' lemoni Limca can cast a tangy refreshing spell onanyone, anywhere. Derived from 'Nimbu' + 'jaisa' hence Lime Sa, Limca has livedup to its promise of refreshment and has been the original thirst choice of millionsof consumers for over 3 decade.
Glass PET Can Fountain
200 ml, 300 ml, 330 ml300 ml, 1 L,
2 L, 2.25 L,330 ml, 330 ml Various Sizes
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Fanta:-
Available in Europe since the 1940s, Fanta was introduced in the United
States in 1960. Consumers around the world, particularly teens, fondly
associate Fanta with happiness and special times with friends and family.
This positive imagery is driven by the brand's fun, playful personality, which
goes hand in hand with its bright color, bold fruit taste and tingly
carbonation.
Glass PET Can Fountain
200 ml, 300 ml,
500 ml, 1.5 L,
2 L, 2.25 L,
500 ml + 100
ml
330 ml Various Sizes
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MAAZA :-
Maaza was launched in 1976, a drink that offered the same real taste of
fruit juices and was available throughout the year. In 1993, Maaza was
acquired by Coca Cola India. Maaza currently, dominates the fruit drinks
industry. Over the years, Maaza has become synonymous with mango.
The drink became a hit with successful advertisement campaigns like
"Taaza mango, maaza mango,' and 'Botal mein aam, maaza hain
naam.'Consumers regard maaza as wholesome, natural, fun drink which
delivers the real experience of fruit.
With the real fruit taste kids love, plus added calcium, Maaza's tagline,
"Yaari-Dosti Taaza Maaza," means "friendship moments With fresh Maaza
in Hindi.
Glass PET Can Fountain
200 ml, 300 ml,
500 ml, 1.5 L,
2 L, 2.25 L,
500 ml + 100
ml
330 ml Various Sizes
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Minute Maid Pulpy Orange:-
Minute Maid has been making orange juice for over 50 years and has a
heritage of innovation, quality and nutrition. Minute Maid has the longest
history of marketing orange juice with calcium, and was the first to
nationally launch orange juice with calcium plus vitamin D, low acid orange
juice, orange juice with vitamins C and E plus Zinc, and orange juice with
naturally sourced plant sterols.
Minute maid pulpy orange juice has been a comparatively new entry in a
market already exploding with beverages, fruit juices, aerated drinks etc.
The juice has got a little orange pulp to chew on while gulping mouthfuls of
juice. The best feature in this is that it is very refreshing (as fresh orange
juice usually is) without being an aerated drink (containing. Also it is not
bitter like many other leading orange juices available in the market. It has
got the right amount of sweetness to not leave a sickly sweet taste on your
tongue.
Glass PET Can Fountain
-------------------------------------------
400ml
1L
l.25L
-------------------- ---------------------------
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MINUTE MAID NIMBU FRESH:-
Ricardo Fort, vice president of marketing for Coca-Cola, said: We at Coca-Cola India are constantly trying to find new ways to delight and refresh ourconsumers. It gives me immense pleasure to announce the launch ofMinute Maid Nimbu Fresh, a refreshing lemon juice-based drink developedespecially for Indian consumers. The roll out of the latest innovation hasbeen designed to further extend the company's market leadership in the
juice drink segment. Coca-Cola in India has launched a new product,Minute Maid Nimbu Fresh, a lemon juice-based drink. The new addition tothe Minute Maid brand is being launched in a phased manner and will beinitially made available to consumers through selective channels andoutlets. The company said that new Minute Maid Nimbu Fresh does notcontain any added preservative or added color.
Glass PET Tetra Pack Fountain
200 ml
400ml
1L 200 ml ---------------------------
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Minute Maid100% Juice
Coca-Cola India Launched The Globally Successful Minute Maid 100%
Juice In The Country. Launch further strengthens its diversified product
portfolio and will provide more choice to consumers.
The Minute Maid 100% juice is a refreshing beverage with no added
preservatives or added colors. The latest offering is made available in three
flavours- Apple, Grape and Orange developed at the Company's Research &
Development Laboratory in Gurgaon. The launch is supported by an
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aggressive consumer activation program including TVCs, Out-of-Home
media, road shows and extensive experiential sampling sessions. The
virtues of the product are best explained by the communication proposition
of -Life Ka Ras conceptualized and executed by Leo Burnett, New Delhi.
Minute Maid 100% juice has been made available in two pack sizes- 200
ml and 1 litre tetrapak, all affordably priced at Rs 20 and Rs 85
respectively.
Having established our juice credentials with the successful launch of
Minute Maid Pulpy Orange and Nimbu Fresh juice drinks along with Maaza,
we are now launching the premium Minute Maid 100% juice range in three
flavors. We expect and hope that our consumers will continue to prefer the
Minute Maid range of juices and juice drinks."
That's how 'Life Ka Ras' was born. We believe everybody should juice all
the moments that life has to offer and make it richer, happier and special.
And Minute Maid gives you the 'Ras' from the most delicious and choicest
fruits so that you can keep enjoying 'Life Ka Ras'."
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kinley Mineral Water:
Kinley is high quality bottled water processed with added minerals popular
among adults who seeks a better quality of life and a healthy lifestyle.
Kinely water understands the importance and value of this life giving force.
It thus promises water that is as pure as it is meant to be. Water you can
trust to be truly safe and pure.
Kinley water comes with the assurance of safety from the coca cola
company. That is why we introduced kinley with reverse osmosis along with
the latest technology to ensure the purity of our product.
Glass PET Can Fountain
------------------------------------- 1L ------------------- ------------------------
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Diet Coke:
Diet Coke (also known as Diet Coca-Cola, Coca-Cola light orCoke
Light) is asugar-freesoft drinkproduced and distributed byThe Coca-Cola
Company. It was first introduced in the United States on August 9, 1982, as
the first new brand since 1886 to use theCoca-Colatrademark. The
product quickly overtook the soft drinkTabin sales.
Diet Coke was sweetened withaspartameafter the sweetener became
available in the United States in 1983; to save money, this was originally ina blend withsaccharin. AfterDiet Ritecola advertised its 100 percent use
of aspartame, and the manufacturer ofNutraSweet(then ,G.D. Searle &
Company) warned that the NutraSweet trademark would not be made
available to a blend of sweeteners, Coca-Cola switched the formula to 100
percent NutraSweet. Diet Coke from fountain dispensers still contains
some saccharin to extend shelf life
http://en.wikipedia.org/wiki/Sugar-freehttp://en.wikipedia.org/wiki/Sugar-freehttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Tab_(soft_drink)http://en.wikipedia.org/wiki/Tab_(soft_drink)http://en.wikipedia.org/wiki/Tab_(soft_drink)http://en.wikipedia.org/wiki/Aspartamehttp://en.wikipedia.org/wiki/Aspartamehttp://en.wikipedia.org/wiki/Aspartamehttp://en.wikipedia.org/wiki/Saccharinhttp://en.wikipedia.org/wiki/Saccharinhttp://en.wikipedia.org/wiki/Saccharinhttp://en.wikipedia.org/wiki/Diet_Ritehttp://en.wikipedia.org/wiki/Diet_Ritehttp://en.wikipedia.org/wiki/Diet_Ritehttp://en.wikipedia.org/wiki/NutraSweethttp://en.wikipedia.org/wiki/NutraSweethttp://en.wikipedia.org/wiki/NutraSweethttp://en.wikipedia.org/wiki/Searle_(company)http://en.wikipedia.org/wiki/Searle_(company)http://en.wikipedia.org/wiki/Searle_(company)http://en.wikipedia.org/wiki/Searle_(company)http://en.wikipedia.org/wiki/Searle_(company)http://en.wikipedia.org/wiki/Searle_(company)http://en.wikipedia.org/wiki/NutraSweethttp://en.wikipedia.org/wiki/Diet_Ritehttp://en.wikipedia.org/wiki/Saccharinhttp://en.wikipedia.org/wiki/Aspartamehttp://en.wikipedia.org/wiki/Tab_(soft_drink)http://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Sugar-free -
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SALES & DISTRIBUTION:
Sales are the cutting edge of any business operations it is part of that company.However big and small that meets the firms customers from home the business is
derived. The people, who are engaged in this activity meet customers and get
information about the product or services which are been sold and provide
feedback to the firm.
American Market association has defined sales management as the blaming
direction and control of selling personal including recruiting, selecting, equipping,
assigning, routing supper visioning, paying and motivating as these tasks apply to
personnel sales force.
In the other word sales management is used by business to refer to the
direction or supervision of sales men.
.COMPETITORS
The competitors to the products of the company mainly lie in the non-alcoholic
beverage industry consisting of juices and soft drinks.
The key competitors in the industry are as follows:-
PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola
Company never ends for the World's # 2, carbonated soft-drink maker. The
company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not
the company's only beverage; PepsiCo sells Tropicana orange juice brands,
Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices
and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, amarket share of 95% out of which 60.8% is held by Coca-Cola and the rest
belongs to Pepsi.
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
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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 thecompany 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.
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RIGHT EXECUTION DAILY
RED held every end of the month to check the availability of products,
purify the visi cooler & chest cooler, marketing elements etc.
In RED Company emphasizes on the setting up a cooler either into outlet or
outdoor.
Set up Menu Boards with Combo and setting up of Hanging Rack.
Setting up Warm Display which attracts the attention of customers.
Setting up the price cards or price stripes.
Available essential marketing elements with full of refrigerator inside and
crates outside for display, of CocaCola product, not other brand. It attracts
the customers.
There are different channels (Grocery, E&D, and Convenience) and VPO
(Diamond Gold, silver). Accordingly it arrange the brands, make there
availability.
It adds the points of Market developer (MD) and Market Developer
Executive (MDE).
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DISPLAY: Right Execution Daily
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1.Grocery Stores:
Outlets primarily engaged in retailing of food and various household items. It
includes Grocery (Outlets dealing mainly in Grains, Provisions, Spices, Edible oil,
Vanaspati etc.) and General Stores (Outlets selling items of day to day requirement
& stocking a variety of branded products.)
2.E
a
t
i
n
g & Drinking (E & D) Stores:
Outlets selling items to eat which are bring cooked within outlet, made at the outlet
with possibility of consuming those products within the outlets. The outlet may have
a place to sit. It includes Bakery / Mithai Stores / Restaurants / Bars / Juice Centers /
Soft Drinks Shops / Icecream Parlors Tea Shops etc.
Activated Grocery Outlet - Representation
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Activated E&D Outlet - Representation
3.Convenience Stores:
It includes outlets which are small stores or shops, generally, accessible locally.
These are often located alongside busy roads. It includes Chemists / STD Booth /Pan Beedi Shops etc.
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Activated Convenience Outlet - Representation
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Introduction to the Topic
EACH DEALER SURVRY
Each Dealer Survey means the information of all the outlets. It measures the every
outlets problem, requirements, and asks their satisfaction with the Company.
In this procedure we go to each shop and meet the shopkeeper. There are differentregion & different shopkeeper having unique nature. Some are satisfied with Coke
and some are not. Sometimes they talk in a rude manner and sometimes they are
polite due to satisfaction. We not only try to solve their problems by forwarding it
to higher authority but also convince them to sell more and more by providing
them immediate offer within one week.
Their problems would be refrigerators not performing well, light is not working,
cooling problem, carelessness of salesman who does not maintaining the orders,not going to every outlets daily.
MARKETING IMPACT TEAM
Marketing Impact Team (MIT) means a group of members who work together to
enhance the sale of the Coke product in a large number as well as it provides the
opportunity for the company to find the weak points of that particular area. We had
to go different places such as CHARBAGH, HAJRATGANJ, GOMTINAGAR,
INDIRA NAGAR, ALAMBAGH, AMINABAD, etc for introduce new product as
well as increase the sale with our ability & caliber.
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We made the planning, scheme, strategy to improve the sale. When a team goes
somewhere for MIT, the sale automatically improve because when if a person says
something about the product then there is chance that he may not fully convince
the customer. But if a team says something it affect the customer more.
Market Condition
Lucknow market is totally a Representative market. As it is heart of city,
everything is available quite easily for the consumers. This market is full of rest
houses, hotel and restaurants which provide standard as well as average facilities to
the customers. Servicemen and others visit here whole day and late night.
Although the area and market was small, but there was no single retailer orcustomer who fulfilling the RED criteria. There were only 22 RED shops but the
Fat Dealer was not been able to maintain his market. I saw that consumer is asking
for the cola beverage but due to unavailability of it, shopkeepers offered them
other drinks
The Problem
No proper supply in the market by fat dealer.
Customers (retailers) rarely got any offers from dealer side.
Visi-cooler was not working in many shops.
Purity is not maintained in almost all shops.
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What I Have Done
I maintained a warm relationship with the retailers and distributors.
came to get aware about their problem.
I assured them of regular supply of soft drinks and other marketing elements.
Each day I moved in the market and took the feedback of sales promotion from
the retailers and distributors by myself.
Persuade them to sell as much by providing them offers and discounts.
THE EFFECT
the market was completely changed.
Sale increased drastically.
All marketing elements were being available in every shop.
Impurities have been removed from all visi-cooler.
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RESEARCH OBJECTIVE
Primary Objective.
To understand the Brand Value of Coca Cola.
The primary objective of my research is to know the Marketing Strategy of
Coca Cola.
As there are number of colas Product available in the market.
The Company is facing a tough competition from not only Pepsi but also from
some of the other local soft drinks and juices.
Secondary Objective.
To understand the impact of Brand image in consumer mind.
To know the Impact of packaging and advertisement.
To identify the consumer buying behaviors and their brand Preferences.
To identify the segment of consumer according to different colas Brand.
To identify the impact of brand value.
To identify the role of brand value in increasing sales volume.The secondary objective of my research is associated with the impact of Brand
image in the mind of consumer and to understand that whether packaging and
advertisement stimulate the consumer to change their preferences.
RESEARCH METHODOLOGY
Research in common refers to a search of knowledge. One can also define
research as a scientific & systematic search for pertinent information of a specific
topic. It is the pursuit of truth with the help of study observation, comparison &
experiment.
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DEVELOPING RESARCH PLAN:
After deciding the objective of marketing research the next step is deciding
Research plan for gathering effective information related to this research project.
The research consists of following steps, which are discussed subsequently.
Research Design.
Exploratory Research/ Descriptive Research:-
The Research design which I have used in preparing this Project is of Exploratory
and Descriptive Research. The reason of being chosen these two Design because
my objective is to know the brand value of coca cola. For achieving the objective, I
must need the detailed study of consumers and Retailers opinion which can
penetrate the sale of coke, and at the same time I have to frame about different
perception of the Customer which is in his or her mind while purchasing different
drink.
METHOD OF DATA COLLECTION.
During project study I use both primary as well as secondary data source. For
primary data collection I visited various consumers and retailers of different areas
of LUCKNOW. For secondary data I went through Journals and Internet. The
information collected is relevant, correct and unbiased.
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Data Collection Devices.
QUESTIONNAIRES
I have collected the data through questionnaire. In, I questionnaire went through
different location of Lucknow and collected the data from distributors and the
retailers. I have taken data from different small stores, organized retail stores and
Mall.
Sampling Plan:
Probability Basis.
I have selected the sampling plan on Probability basis. I have chosen the sample of
distributors and retailers on random basis. I have chosen the sample on probability
basis because it gives us every unit of population a known and non zero probability
of being selected. And it implies equal probability to every unit in the population.
Methods of Data Interpretation:
In this market study I have used bar & pie chart for data analysis & interpretation
because pie chart is the easiest & comprehensive medium for presentation of data.
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DATA ANALYSIS
AND
INTERPRETATION
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DATA ANALYSIS
(BASED ON RETAILERS)
1.NUMBEROF RETAILERS GETTING THE INFORMATION ABOUT THE
PROMOTIONAL SCHEME FROM THE DIFFERENT SOURCES:
Salesman - 117
M.I.T - 8
Visitor - 18
Other Outlets - 7
TOTAL 150___
117
818
7
0
20
40
60
80
100
120
salesman M.I.T visitor other
outlets
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2. THE PUROSE OF JOINING THIS SCHEME BY THE RETAILERS IS :
Prize - 65
Money - 45
Display - 24Enrich relation with coke - 16
________________________________________
TOTAL - 150
As shown in the table 65 retailers had a opinion that they should get something
back from the coke with regarded to sales in terms of gift & reward. This provide
to be a motivating factor for them .another 45 were demanding for monetary profit
because it would help them in their business. Yet another 24 demanded display
facilities which helps them to increase their sales rest 16 had totally differentopinion i.e. outlets wanted only good relation with the company.
65
45
2416
0
10
20
30
40
50
60
70
prize money display enrich
relation
with
coke
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3.AFTER ANALYSNG THE MARKET THE MOST
DEMANDING ITEM AS A PRIZE BY THE DEALARS :
Cash - 52
Gifts - 73
Trips - 12
Prepaid connection - 7
Recharge coupons - 6
_____________________________
TOTAL - 150
0 20 40 60 80
Cash
Gifts
Trips
prepaidconn.
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4. MANY RETAILERS WILL SHOW THE DISPLAY OF COCA COLA
ON THEIR SHOP IS A :
Warm - 84
Cool - 66
_________________
TOTAL - 150
84
66
0
10
20
30
40
50
60
70
80
90
Warm Cool
5. ACCORDING TO RETAILERS THE DURATION OF THESE SORTS OF
SCHMES SHOULD BE:
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One Month - 25
Three Month - 68
Six Month - 47
One year - 10
_____________________TOTAL - 150
25 outlets suggested towards the one month scheme by which they got regular and
new scheme and more gift. 68 outlets were the favor of three months scheme as
they throught that 3 month schemes are much more profitable then one month
scheme. They can get more refunds from this scheme. They didnt for one year or
six month scheme because they were also having a view of getting new scheme
from time to time and same was the view of outlets who voted for six month & one
year scheme.
25
68
47
10
0
10
20
30
40
50
60
70
One Month Three Month Six Month One year
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6.THE DIFFERENT EXISTING COCA-COLA PARTICEPATED
BY THE DIFFERENT OUTLETS.
Cash discount scheme - 82Scratch card - 23
Rack points - 30
Run collection - 15
______________________________
TOTAL - 150
As show in the figure 82 outlets are prefer the cash discount scheme by coca-cola
by which they got investment to get increase their business . and 23 outlets are at
scratch card scheme side in which they got surprise gift and 30 of them suggest the
rack schemes in which they got gifts on display of racks and 15 is for run
collection the collects the point as runs and sum of the points got the gifts
.
82
2330
15
0
20
40
60
80
100
cash disc.. scratch card rack point
schemes
run
collection
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DATA INTREPRETATION
(BASED ON RETAILERS QUESTIONNAIRE)
1. Drink they are selling.
The above graph indicates that out of 100 samples of retailers, 34 are selling cold
drinks, whereas only 6 are selling juice and 60 retailers are selling all the
beverages.
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2. Maximum demand is for.
The above graph indicates that according to retailers, the demand of Coke is more
which is expressed by 52 retailers, 46 of them said that the demand of Pepsi is
more and the 2 said that other products have more demand like Dabur Real .
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3.Peak season for colas?
When talked to the retailers, 87 out of 100 have their view that summer is the peak
season for cold drink market, 9 said that winter is the good market and the rest 4said that other season is good for the sale of cold drinks.
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4.What attracts customer while buying the Colas?
packaging27%
pricing
36%
taste
23%
display
14%packaging
pricing
taste
display
The above graph indicates that pricing attract more, it has been stated by 36
retailers out of 100, according to 27 retailers its the packaging which attracts the
customer more, 23 said that taste attracts the customer, and 14 have their view that
its display which attracts the customer more.
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5.More margin is given by?
coke
28%
pepsi
67%
others
5%
The graph indicates that almost 67 retailers have said that Pepsi gives them more
margin as compared to Coke, whereas 28 have clearly said that Coke are giving
them more margin then Pepsi, while the rest of 5 said that other drinks company
gives them more margin.
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6. Frequent buyers?
According to 67 retailers, their frequent buyers are Adults whereas 21 said that
children come frequently to their shop, and the remaining 12 said that mix group ofcustomers comes over their shop.
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7.Which pack has more selling?
Referring to the graph, the sale of 250-300 ml bottle is more (according to 61
retailers), 23 retailers have view that 600 ml pack has more sale. 7 retailers said
that 1.25 litre has more sale, and rest 9 said that its 2 litre bottle whose sale is
more.
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8.Good distributor?
The above graph indicates that out of 200 . 150 retailers have their opinion that
Pepsi has the good distribution network, whereas 41 retailers have their view thatCoke is having a good distribution network, and remaining 9 said that other
companies like Dabur and Parle agro have good distribution channel.
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9.Have you all type of cold drink brands?
YES NO
YES, 60
NO, , 40
0
10
20
30
40
50
60
70
YES
NO
CONLUSION- 60% of retailers had all the cold drinks while rest of retailers has
not.
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FINDINGS ON THE BASIS OF RETAILER QUESTIONNAIRE
After collecting the data from 200 retailers, I found the following findingswhich I
observed during the survey:
Key Finding
According to analysis Salesman informed more about the promotional
schemes as compared to other.
Cash is more demanding item in market by outlets as because it gives them
a financial support to their business.
The outlets join the schemes to motivate themselves by getting high prize bycompany.
The distribution channel of coke is very poor in some of areas.
Other Findings.
Every retailer wants that vehicle should come in the morning so that they will keep the bottles in
the fridge as soon as possible.
1. Marketing elements attract consumers.
2. The profit margin on coke is less than Pepsi.
3. Some shopkeepers do not get scheme on time.
4. Majority of retailers is asking about Boards, Openers & Counters.
5. The frequent buyers are adults.
6. Packaging attracts customers.
9. The demand of Thums up, Sprite and Maaza is more than other coke products.
10. The demand of colas is very high in summer.
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RESULT OF INTERPRETATION
Many retailers joined the schemes to get something back from the coke.
This provides to be a motivating factor for them.
As the figures say that short terms schemes for 6 month gives more time
to outlet to achieve their target.
86%retailers said that companys scheme was beneficiary for them.
84% retailers joined to use cases at front of their shops.
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SWOT ANALYSIS
The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor andmarketer of Non-alcoholic beverage concentrates and syrups, in the world. Coca-
Cola has a strong brand name and brand portfolio. Business-Week and Inter brand,a branding consultancy, recognize Coca-Cola as one of the leading brands in theirtop 100 global brands ranking in 2006. The Business Week-Interbred valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well ahead of its closecompetitor Pepsi which has a ranking of 22 having a brand value of $12,690million The Companys strong brand value facilitates customer recall and allowsCoca-Cola to penetrate markets. However, the company is threatened by intensecompetition which could have an adverse impact on the companys market share.
Strength
Coca-Cola has strong brand recognitionacross the globe. The company has aleading brand value and a strong brandportfolio. Business-Week and Inter brand,a branding consultancy, recognize. Coca-Cola as one of the leading brands in their
top 100 global brands ranking in 2006.TheBusiness Week-Inter brand valued Coca-Cola at $67,000 million in 2006. Coca-
Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22having a brand value of $12,690 million urthermore, Coca-Cola owns a largeportfolio of product brands. The companyowns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke,Sprite and Fanta. Strong brands allow the company to introduce brand extensionssuch as Vanilla Coke, Cherry Coke and Coke with Lemon. Over the years, thecompany has made large investments in brand promotions. Consequently, Coca-cola is one of the best recognized global brands. The companys strong brand valuefacilitates customer recall and allows Coca-Cola to penetrate new markets andconsolidate existing ones.
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Large scale productions
With revenues in excess of $24 billion Coca-Cola has a large scale of operation.Coca-Cola is the largest manufacturer, distributor and marketer of nonalcoholic
beverage concentrates and syrups in the world. Coco-Cola is selling trademarkedbeverage products since the year 1886 in the US. The company currently sells itsproducts in more than 200 countries. Of the approximately 52billion beverageservings of all types consumed worldwide every day, beverages bearingtrademarks owned by or licensed to Coca-Cola account for more than 1.4 billion.The companys operations are supported by a strong infrastructure across theworld. Coca-Cola owns and operates 32 principal beverage concentrates and/orsyrup manufacturing plants locatedThroughout the world. In addition, it owns or has interest in 37 operations with 95principal beverage bottling and canning plants located outside the US. The
company also owns bottled water production and still beverage facilities as well asa facility that manufactures juice concentrates. The companys large scale ofoperation allows it to feed upcoming markets with relative ease and enhances itsrevenue generation capacity.
Robust revenue growth in three segments
Coca-colas revenues recorded a double digit growth, in three operating segments.These three segments are Latin America, East, South Asia, and Pacific Rim and
Bottling investments. Revenues from Latin America grew by 20.4% during fiscal2006, over 2005. During the same period, revenues from East, South Asia, andPacific Rim grew by 10.6% while revenues from the bottling investments segment
by 19.9%. Together, the three segments of Latin America, East, South Asia, andPacific Rim and bottling investments, accounted for 34.8% of total revenuesduring fiscal 2006. Robust revenues growth rates in these segments contributed totop-line growth for Coca-Cola during 2006.
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Weakness
Negative publicity
The company received negative publicity in India during September 2006.TheCompany was accused by the Center for Science and Environment (CSE) ofselling products containing pesticide residues. Coca-Cola products sold in andaround the Indian national capital region contained a hazardous pesticide residue.These pesticides included chemicals which could cause cancers, damage thenervous and reproductive systems and reduce bone mineral density. Such negative
publicity could adversely impact the companys brand image and the demand forCoca-Cola products. This could also have an adverse impact on the companysgrowth prospects in the international markets.
Sluggish performance in North America
Coca-Colas performance in North America was far from robust. North America is
Coca-Cola score market generating about 30% of total revenues during fiscal
2006. Therefore, a strong performance in North America is important for the
company.
North America the sale of unit cases did not record any growth. Unit case retail
volume in North America decreased 1% primarily due to weak sparkling beverage
trends in the second half of 2006 and decline in the warehouse-delivered water and
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juice businesses. Moreover, the company also expects performance in North
America to be weak during 2007.
Sluggish performance in North America could impact the companys future growth
prospects and prevent Coca-Cola from recording a more robust top-line growth.
Decline in cash from operating activities
The companys cash flow from operating activities declined during fiscal 2006.
Cash flows from Operating activities decreased 7% in 2006 compared to 2005. Net
cash provided by operating Activities reached $5,957 million in 2006, from $6,423
million in 2005. Coca-Colas cash flows, from operating activities in 2006 also
decreased compared with 2005 as a result of a contribution, of approximately $216
million to a tax-qualified trust to fund retiree medical benefits. The decrease was
also the result of certain marketing accruals recorded in 2005.
Decline in cash from operating activities reduces availability of funds for the
companys investing and financing activities, which, in turn, increases the
companys exposure to debt markets and fluctuating interest rates.
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Opportunities
Acquisitions
For the last one year, Coca-Cola has been aggressively adopting the inorganic
growth path. During 2006, its acquisitions included Kerry Beverages, (KBL),
which was subsequently, reappointed Coca-Cola China Industries (CCCIL). Coca-
Cola acquired a controlling share holding KBL, its bottling joint venture with the
Kerry Group, in Hong Kong. The acquisition extended Coca-Colas control over
manufacturing and distribution joint ventures in nine Chinese provinces. In
Germany the company acquired Apollinaire which sells sparkling and still mineral
water in Germany. Coca-Cola has also acquired a 100% interest in TJC Holdings, a
bottling company in South Africa. Coca-Cola also made acquisitions in Australia
and New Zealand during 2006.These acquisitions strengthened Coca-Colas
international operations. These also give Coca-Cola an opportunity for growth,
through new product launch or greater penetration of existing markets. Stronger
international operations increase the companys capacity to penetrate internationalmarkets and also gives it an opportunity to diversity its revenue stream.
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Threats
Intense competition Coca-Cola competes in the nonalcoholic beverages segment of
the commercial beverages industry. The company faces intense competition in
various markets from regional as well as global players. Also, the company faces
competition from various nonalcoholic sparkling beverages including juices and
nectars and fruit drinks. In many of the countries in which Coca-Cola operates,
including the US, PepsiCo is one of the companys primary competitors. Other
significant competitors include Nestle, Cadbury Schweppes, Grope DANONE and
Kraft Foods. Competitive factors impacting the companys business include
pricing, advertising, sales promotion programs, product innovation, and brand andtrademark development and protection. Intense competition could im