Beverage

Non-Alcoholic Beverages Alcoholic Beverages

Non-carbonated Carbonated Fruit Based Grain

Fruit Juices,

Coffee,

Tea,

Packaged Water

Colas,

Soda,

Tonic Water

Wine,

Brandy

Beer,

Whisky

INTRODUCTION

A beverage is a drink specifically prepared for human consumption. Beverages

almost always largely consist of water. Drinks often consumed include: Water (both

flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy drinks,

Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy products like milk.

Commonly, drinks are filled into containers, like glass or plastic bottles, steel or

aluminum cans as well as cardboard supported packages, like the "TetraPack" or

others. Filling of beverages can be done cold, hot, ambient and cold-aseptic filling to

mention the latest trend of beverage marketing and technology.

The beverage is mainly categorized into two major categories based upon the

alcoholic and nonalcoholic nature of the drink. Non-Alcoholic beverages are further

o two types based upon carbon content. These beverages contain Fruit juices,

Coffee, Tea, Soda, Colas. The Alcoholic beverages are based upon the fruit content

and grain. It may be Wine, Brandy, Whisky or Beer.

1

Indian Beverage Industry

India has a population of more than 1.150 Billions which is just behind China.

According to the estimates, by 2030 India population will be around 1.450 Billion

and will surpass China to become the World largest in terms of population.

Beverage Industry which is directly related to the population is expected to maintain

a robust growth rate. The price stability throughout the year has contributed to the

increase in domestic liquor sales.

The Indian beverage market offers hot options. According to Dabur, the fruit

beverages industry in India now stands at Rs 1100 crores (approx. Euro 180 million)

and the market has grown at the rate of 30% where Dabur India, through the new

launch Real Burst, is looking at establishing a market share of 4-5% in next 2-3

years.

Part of the industry of fast moving consumer goods is also the beverage industry.

The total beverage industry in India is being estimated to grow at 17% this year,

according to experts. "Food and beverages segment has not suffered despite the

slowdown in the economy. FMCG in our stores has done very well. In fact, we

registered 10-15% growth in this segment last year," said a spokesperson at

Spencer's Retail Ltd.

Beverage majors like Coca Cola India, for example, again reported growing sales.

Coca-Cola in India reported a solid first quarter 2009 results not only despite a

challenging economic environment, but also with unit case volume increasing by

31%. And eight quarters out of the 11 quarters had a double-digit growth.

To foreign observers of the market, these figures might sound unbelievable, as

Western markets are saturated and have not seen such figures for long time. But in

2

India, various positive factors drive the beverage markets. One is the rising number

of people in the middle class with extra money to spend on new beverages like

wine, new brands of imported whiskey, or the fancy energy drinks, some of which

are really good to enable people to work

longer, to listen longer during conferences, and even to party longer and have fun.

Leader in this segment is Red Bull, but some other good and very effective drinks,

one even very healthy are already or soon entering the market.

Another factor is the sheer size of the number of people in India. Even the rural

households, as long as the monsoon is good, get purchasing power and can

participate in consumer markets. Where ever the purchasing power is still not big

enough, companies offer smaller packs for Rs. 10 or Rs. 5, especially to be seen in

the snack market. Hot summers in India also help a bit to sell beverages.

The large untapped market potential for store-bought non-alcoholic beverages, in

particular carbonated beverages, juice based drinks and energy or sports drinks

among urban/suburban consumers in India.Approximately 120 billion litres of

beverages are consumed by Indians every year, but only 5% represent store-bought

packaged beverages. The majority of Indian consumers (75%) still consume non-

alcoholic store-bought beverages ‘less than once a day’, highlighting a large

untapped market opportunity, particularly in the carbonated drinks and juice or juice-

based categories (estimated to be worth $1.5 Billion and $.25 billion respectively). In

order to increase consumption and penetration of such beverages manufacturers

will have to address the two primary reasons why some Indians abstain entirely, that

is, health concerns and undesirable taste.

The study investigates consumption frequency and habits, the importance of various

product attributes, and brand preferences across age, household income, city in

India and beverage category. This study has implications for manufacturers,

distributors, retailers and investors hoping to capitalize on the growth of these

beverage categories in India and distinguish themselves in the increasingly crowded

marketplace.

3

India is a booming market for the beverage industry as well. It already accounts for

about ten per cent of global beverage consumption today. This means that the

country has the third-largest beverage consumption after the USA and China. But

that is not the end of the road. Market analyses indicate that beverage sales in India

will be increasing by more than 60 per cent between 2008 and 2012. Since India is

(still) a country of tea and coffee drinkers, packaged cold drinks have enormous

potential. Packaged water, beer, spirits and carbonated drinks are recording what

rates are in some cases high double-digit growth. All in all, annual per capita

consumption of packaged beverages is supposed to triple from 2.6 litres in 2000 to

8.7 litres in 2012.

Demand for milk and milk-based beverages are also rising. India is the world’s

biggest producer and consumer of milk, since milk plays a major role in the Indian

diet. The consumption of milk and milk-based beverages has increased by an

annual average of 2.7 per cent in the last four years and most of them (65 per cent)

are sold “loose” / unpackaged.

The proportion of the market accounted for by packaged milk and dairy products are

increasing, however. In the past four years, for example, demand for milk filled in

pouches has grown by 4.5 per cent annually, while the figure for milk in cartons is

about 25 per cent. The rising consumption is making it necessary for appropriate

investments to be made by the beverage industry.

The sector is highly fragmented and 95 per cent of these producers have small or

very small operations. Of this, the health beverage industry is valued at $230 million.

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 was

51:49 in 2000. Coffee is consumed largely in the southern states. The size of the

total packaged coffee market is 19,600 tonnes or $87 million.

4

The total soft drink (carbonated beverages and juices) market is estimated at 284

million crates a year or $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 and Pepsi dominate the Indian soft drinks

market. Mineral water market in India is a 65 million crates ($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.

Key Features of Indian Beverage Industry

Indian Beverage Market CAGR[2007-2010]:21%

India ranked 3rd in largest beverage consumption after the USA and China

Total Indian Beverage Consumption every year:120 billion liters

Fruit Beverages Market size: Rs 1100 crores (approx. Euro 180 million)

Fruit Beverage market growth rate: 30%

Majority of Indian consumers:75% consume Non-alcoholic beverages and 25%

Alcoholic Beverages

Carbonated Drinks Market size: $1.5 Billion

Juice or juice-based Drinks Market size: $.25 billion

Health beverage industry is valued at $230 million

Indian Beer Market Growth Rate: 7 - 8 %

Milk-based beverages consumption has increased by an annual average of 2.7

per cent in the last four years

Total packaged coffee market size: 19,600 tonnes or $87 million.

The Indian soft drink market is worth Rs. 21,600 million a year with a growth of

around 7%.

The total soft drink (carbonated beverages and juices) market is estimated at

284 million crates a year or $1 billion.

Peak season soft drink consumption : 25 million

Off-season soft drink consumption: 15 million

5

The market is predominantly urban with 25 per cent contribution from rural

areas.

Coca cola and Pepsi dominate the Indian soft drinks market.

Indian Mineral water market size : 50 million industry.

Factors Driving Indian Beverage Market

India is a growing and developing country which is having a very high economic

growth with the drastic increase into the population size. Due to the developing

economic condition, there is increase in the competition among the manufacturers,

retailers, dealers to promote their products at competitive prices.

The increase in the India population has given a high demand of beverage market

products. The Indian beverage market is segmented into the two major segments –

Alcoholic and Non-Alcoholic Beverages.

Again these categories of beverages are sub-divided into the carbonated and fruit

based drinks.

Tea and Coffee also contributed majorly into the Beverage Industry.Indian Beverage

market distribution and marketing channel is highly networked and has a very

approach to the customers. Due to the globalization and technological

developments there is highly innovative products are coming into the Indian

Beverage markets which are appreciated by the Indian population.

In India, here are various forms of beverage market get to be seem in the form of

retailers, Restaurants, Coffee shops, Sport events, Hotels etc.

There are certain factors which are driving developments into the Indian

Beverage sector:

Economic growth

Population growth

Competition for Raw materials

6

Power of retailers

Globalization / Regionalization

Research & Development

Technological Developments

Food safety and regulation

Consumer Demands and trends

Indian Beverage Market and Distribution

Network.

7

Issues Related to Indian Beverage

Market.

Social Issues

For the alcohol industry the social concerns are numerous, ranging from associated

disease as well as health and safety impacts from high levels of alcohol

consumption, to under-age drinking, and in developing country contexts the portion

of spending on alcohol versus basic needs.

Domestic violence and an exacerbation of poverty have made alcohol abuse the

single most important problem for women in India.

The report points out that as prosperity levels increase across Asia, we can expect

to see increasing levels of alcohol consumption. This presents both an opportunity

for listed companies in Asia, but given the potential negative social impacts, it also

presents significant challenges.

Soft drink companies are advised to anticipate government regulations, particularly

in relation to their marketing approaches to children. Companies need to be

innovative in creating healthier soft drink products as in the case of PepsiCo and

Coca Cola focusing on a low sugar, natural sweetener for their products and

Vietnamese and Chinese brands tapping into the demand for alternatives to

carbonated soft drinks.Companies should assess their supply chain risks and put in

place codes of conduct, monitoring and capacity building initiatives to prevent these.

As consumers become more aware of supply chain issues, good supply chain

management can create a competitive advantage.

Companies that rely on agricultural supply chains, particularly large numbers of

small holding farmers, should look to developing partnerships with government,

local NGOs and international agencies to better manage social risks.

Governance Issues

8

A typical challenge in the Indian beverage sector’s fight against corruption is the

complex interrelationship between politics and the private sector. Strong

governance is clearly vital for companies to ensure the integrity of their

organizations, relationships with consumers and government authorities to avoid

corrupt business practices.

Companies should look to providing more transparency and accountability in terms

of the selection of board members, remuneration, links between remuneration and

performance, diversity of the board and decision making processes.

Alcohol companies should ensure a high level of transparency in terms of the

financial support provided for industry groups that in turn lobby national

governments for changes in alcohol policies

Companies should put in place initiatives and get involved in collective action to

raise corporate integrity, especially in relation to corruption and bribery.

Environmental Issues

Companies need to first assess to what extent they and their suppliers depend on

water and the associated risks. This should be done in consultation with key

stakeholders.

Companies need to realize that global commitments to improve water efficiency can

only be implemented locally, requiring versatility and local management support.

Companies should disclose water performance and the initiatives that they are

putting in place.

Companies need to assess their contribution to climate change, put in place

measures to reduce emissions and waste and report on progress.

9

SWOT Analysis of Indian Beverage Industry

STRENGTH

Renewal and investment

Innovation and Technological development

Experience in searching for new markets, niches and partners

Availability of key raw materials, cheaper labor costs and presence across

the entire value chain gives India a competitive advantage.

WEAKNESS

Old technologies and poor work organization

Insufficient pace of creation and implementation of innovations

Insufficiently effective activities of small and medium-sized businesses

Change in household consumption patterns

OPPORTUNITIES

Presence of a favorable market

Market globalization

Foreign direct investment promoting knowledge and developing export

channels

Transfer of production to the countries with smaller labor costs

Well established distribution network

THREATS

Increasing competition among exporters and decreasing dependency on one

market

10

Intense competition between the organized and unorganized segments and

low operational cost.

Water scarcity in India

Implementation of Goods and Service tax by 2011

Leading Players

There are so many large companies present in India who are leading players in the

Indian Beverages Industry. The companies are having large annual turnovers with

wide range of product portfolios which include all kinds of beverage drinks from

soda to energy drinks. These companies are having a large variety of products like

soda, water, Colas, Fruit based drinks, Lemon based drinks, Milk beverages, and

Fruit based wine, beer, Whisky, Coffee, and Tea etc. with so many health and

energy drinks portfolio.

These companies have a strong distribution and marketing channel which supply

the beverages products to customers through retailers, Coffee shops, Restaurant,

Hypermarket and Supermarkets. The segment is highly distributed all over the

country through a long chain of retailers and suppliers who are providing very

efficient service to the company.

The leading Indian Beverage sector players are as follows:

1. Coca-Cola Company

2. PepsiCo

3. UB Group

4. Dabur India Ltd

5. TATA Global Beverages Ltd [TATA Tea]

6. Nestlé India

7. Café Coffee Day

8. Red Bull India Pvt Ltd

11

Coca Cola Company

Coca-Cola is the world's leading beverage company. The company is the

world's leading manufacturer, marketer, and distributor of nonalcoholic

beverage concentrates and syrups, used to produce nearly 400 beverage brands.

The company makes and distributes sodas, waters, fruit juice, teas and coffees and

energy drinks. Through the world's largest beverage distribution system,

consumers in more than 200 countries drink the company's beverages at a rate

exceeding 1.5 billion servings each day. Major brands include Coke, Diet Coke,

Sprite, Bacardi, A&W, Minute Maid, Dasani, Nestea, PowerAde and Hi C.

Kandhari Beverages Pvt. Ltd.

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

rather than reveal its formula to the Government and reduce its equity stake

as required under the Foreign Regulation Act (FERA) which governed the

operations of foreign companies in India. Coca-Cola re-entered the Indian market

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

An agreement with the Parle Group gave the Company instant ownership of the top

soft drink brands of the nation.

With access to 53 of Parle‟s plants and a well set bottling network, an excellent

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

Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca,

Maaza, which were floated by Parle, as these products had achieved a strong

consumer base and formed a strong brand image in Indian market during the re-

entry of Coca-Cola in 1993.Thus these products became a part of range of

products of the Coca-Cola Company. KANDHARI GROUP was established in

1967 by Late Mr. Teja Singh Kandhari, is presently a progressive business house in

India. The group’s first venture was a bottling unit as a franchisee of PARLE‟s soft

drink manufacturing “ Gold Spot ” under license from PARLE established at Amritsar

12

in the north Indian state of Punjab. Kandhari Beverages Ltd is among Coca-Cola

India's top 4 franchisee bottlers. Over a period of time, the Group ventured deep into

Aerated Water business and expanded its scope of operations to other Indian states

including Punjab, Haryana, Chandigarh and Himachal Pradesh.

In 1993, the world renowned soft drink giant - Coca-Cola entered India and bought

over PARLE brand of soft drink products, being one of the star bottlers of PARLE

the Group switched to manufacturing, bottling & marketing of Coke brand of soft

drink products

Distribution Network.

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

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

account management at the store level.

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

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

delivery, merchandising and local account management).

Merchandising: Merchandising means communication with the consumer at the

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

delivery personnel both have this responsibility. In certain locations special teams

who go into business locations to specifically merchandise our products.

Distribution Chain

13

Coca Cola India Co. LTD has a wide and well managed distribution network.

A typical distribution chain at KO would be:

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

Warehouse --- Retail Stock --- Retail Shelf --- Consumer

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

routes, and every salesman is assigned to one particular route, which is to be

followed by him on a daily basis. A detailed and organized distribution system

contributes to the efficiency of the salesmen. It also leads to low costs; higher sales

and higher efficiency thereby lead to higher profits to the firm.

The departments that are involved in the distribution system are shipping and

warehousing department, finance department and distribution department.

14

Mission of Coca-Cola Company

From their heritage to their mission to the people who bring their products to thirsty consumers, The Coca-Cola Company is a part of lives everywhere.

Their Mission is

“To Maximize Share-Owner Value over Time.”

In order to achieve this mission, they must create value for all the constituents they serve, including their consumers, their customers, their bottlers and their communities. The Coca-Cola Company creates value by executing a comprehensive business strategy guided by six key beliefs:

Ø Consumer demand drives everything they do.

Ø Brand Coca-Cola is the core of their business.

Ø They will serve consumers a broad selection of the nonalcoholic ready-to-drink beverages they want to drink throughout the day.

Ø They will be the best marketers in the world.

Coca Cola worldwide and in India.

The Coca-Cola Company is the world’s largest beverage company. Along with

Coca-Cola, recognized as the world’s most-valuable brand, the Company markets

four of the world’s top five soft drink brands, including Diet Coke, Fanta and Sprite

and a wide range of other beverages, including water, juices and juice drinks, tea,

coffee and sports drinks. Through one of the world’s largest beverage distribution

system, consumers in more than 200 countries enjoy The Coca-Cola Company’s

beverages at a rate exceeding 1.6 billion servings each day.

Coca-Cola in India is the country’s leading beverage Company with an unmatched

portfolio of beverages. The Company manufactures and markets leading beverage

brands like Coca-Cola, Thums Up, Fanta, Fanta Apple, Limca, Sprite, Maaza,

Minute Maid, Burn, Kinley and Georgia range of tea coffee, Nestea and Fanta Fun

Taste.15

One of the early investors in India, the Coca-Cola system provides direct and

indirect employment to more than 1, 50,000 people.

The Coca-Cola System in India has more than 1 million retailers and our business

has a multiplier effect on employment and earning opportunities. Coca-Cola in India

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

Coca-Cola System in India business also positively impacts industries like Glass,

Plastics, Resin Manufacturers, Sugar, Automobiles, White Goods Manufacturers,

Banking etc.

The Coca-Cola Company has always placed high value on good citizenship. At the

heart of business is a mission statement called the Coca-Cola Promise - “The Coca-

Cola Company exists to benefit and refresh everyone that it touches.”

This basic proposition entails that the Company’s business should refresh the

markets, protect, preserve and enhance the environment and strengthen the

community. Coca-Cola India provides extensive support for community programs

across the country, with a focus on education, health and water conservation. The

Company has installed more than 500 rain water harvesting structures in the

country. The Company has also undertaken the rejuvenation and reconstruction of

several traditional water bodies including check dams.

We are also working towards providing clean drinking water to school children in

Chennai and areas in West Bengal in partnership with Rotary International and UN

Habitat respectively. The Company is committed to work with communities across

India in its effort to contribute to mutual growth and development.

16

Coca Cola Systems worldwide and in India

At the core of our business in India, as in the rest of the world is our production and

distribution network, which we call the “Coca-Cola system”. Globally, the Coca-Cola

system includes our Company and more than 300 bottling partners. The Coca-Cola

Company manufactures and sells concentrate and beverage bases. Our authorized

bottlers combine our concentrate or beverage bases as the case may be with

sweetener (depending on the product), water or carbonated water to produce

finished beverages. These finished beverages are packaged in authorized

containers bearing our trademarks -- such as cans, refillable glass bottles, non-

refillable PET bottles

and tetra packs -- and are then sold to wholesalers or retailers. In India, additionally,

the Company also sells certain powdered beverage mixes such as Vitingo and

Fanta Fun Taste.

Our beverages reach our ultimate consumers through our customers: the grocers,

small retailers, hypermarkets, restaurants, convenience stores and millions of other

businesses that are the final points of distribution in the Coca-Cola system. What

truly defines the Coca-Cola system, and indeed what makes it unique among

businesses, is our ability to create value for our customers and consumers.

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The

Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells

concentrate and beverage bases and powdered beverage mixes, a Company-

owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen

authorized bottling partners of The Coca-Cola Company, who are authorized to

prepare, package, sell and distribute beverages under certain specified trademarks

of The Coca-Cola Company; and an extensive distribution system comprising of our

customers, distributors and retailers. Coca-Cola India Private Limited sells

concentrate and beverage bases to authorized bottlers who are authorized to use

these to produce our portfolio of beverages.

17

These authorized bottlers independently develop local markets and distribute

beverages to grocers, small retailers, supermarkets, restaurants and numerous

other businesses. In turn, these customers make our beverages available to

consumers across India.

Company Overview

Established in 1886, Coca-Cola is the world’s most ubiquitous brand. The company

and its subsidiaries are present in over 200 countries employing over 49,000

individuals and generating revenues to the tune of US$ 21 billion. The Coca-Cola

Company markets four of the world’s top-five soft drink brands; its beverage

products encompass nearly 400 brands, including non-carbonated beverages such

as waters, juices, sports drinks, teas and coffees.

The company’s net income registered a CAGR of 7.2 per cent over a 10-year

period. Till date, Coca-Cola has invested over US$ 1 billion in India and employs

over 5,000 people. The Coca- Cola system in India comprises 25 wholly owned

Bottling operations and another 35 franchisee-owned bottling operations. A network

of 27 contract-packers also manufactures a range of products for the company.

Business in India

Coca-Cola is a leading player in the Indian beverage market with a 60 per cent

share in the carbonated soft drinks segment, 36 per cent share in fruit drinks

segment and 33 per cent share in the packaged water segment.

18

Outsourcing distribution and manufacturing

Coca-Cola India minimized its capital needs by meeting new manufacturing capacity

needs through external co-packers, outsourcing its distribution and meeting its in-

market-refrigeration and cooling needs by giving incentives to retailers to self-fund

the same through its “Own Your Fridge Scheme.”

Today, the company has an extensive rural and urban distribution network. Coca-

Cola adopts a hub and spoke format distribution network ensuring that large loads

travel longer distances and short loads travel short distances. The company has

increased its village penetration from 9 per cent in 2000 to 28 per cent in 2004 and

covers approximately 175,000 villages today. Rural India now accounts for 30 per

cent of Coca-Cola’s sales volumes.

Factors for success

19

Coca-Cola has succeeded in spite of an extremely price-sensitive consumer with

entrenched beverage consumption habits – tea, nimbu-paani (lemonade) and a

ragmented and geographically dispersed retail market, and a high tax environment.

Diverse product portfolio

In keeping with its goal of emerging as the single largest entity in the beverage

market, Coca-Cola has a presence in multiple segments.

• Carbonated soft drinks (Coke, Diet Coke, Fanta, Thums Up, Sprite and

Limca)

Fruit juice based drinks (Maaza)

Powdered soft drinks (Sunfill)

Coffee and tea (Georgia)

Bottled water (Kinley) and Bottled soda (Kinley Soda)

The company leverages this comprehensive portfolio, which includes a mix of its

global brands as well as the locally acquired brands like Thums Up, Limca and

Maaza

• It sells these beverages in multiple volumes of 200 ml, 300ml, 500ml, 1.5 l

bottles, tetra packs as well as through vendors (fountain machines)

• Explores new markets with the introduction of new drinks (Georgia, coffee and

tea segment) and flavors (Vanilla Coke)

20

TYPES OF PRODUCTS(BRANDS)

1. COCA COLA

The world’s favorite drink.The world’s most valuable brand.The most

recognizable word across the world after OK. Coca –Cola has a truly

remarkable heritage from a humble beginning in 1886, it is now the

flagship brand of the largest manufacturer, marketer and distributor of

non- alcoholic beverages in the world.

2. THUMS UP

It is a leading sparkling soft drink and most trusted brand in India.

Originally introduced in 1977, Thums up was acquired by the Coca Cola

Company in 1993.This brand known for its strong, fizzy taste and its confident,

mature and uniquely masculine attitude.

3. SPRITE

Sprite is global leader in the lemon line category, is the largest parkling

beverage brand in India. Launched in 1999, Sprite with its cut thru

perspective has managed to be a true teen

21

FANTA

Fanta has entered in Indian market in the year 1993.Fanta stands for its

vibrant color, tempting taste and tingling bubbles

LIMCA

Born in 1971,Limca has remained unchallenged as the No. 1 sparkling Drink

in the cloudy lemon segment. The main point in the brand is the “Freshness”.

PULPY ORANGE

The company developed a process that eliminated 80 % of the water in orange

juice forming a frozen concentrate that when reconstituted created orange

juice.

Available in 400 ml,1 L and 1.25 L and also in PET pack size.

MAAZA

Mango. It is a fruit associated with good times like no other. It’s called the

king o fruits.

KINLEY

Kinley water understands the importance and value of the life giving fore.Kinley

water comes with the assurance of safety from the Coca-Cola Company.

Coca-Cola introduced Kinley with reverse osmosis along with latest

technology.

Available in 500ml,100ml in PET.

22

GEORGIA GOLD

Introduced in 2004,the Georgia gold of tea and coffee beverage is perfect

solution for the office and restaurant needs!It is available at quick service

restaurant, Cinemas, Airports and in Coporates across all major matros in

India.

Hot Bevarges : Espresso, Americano, Cappucino, Caffe Latte, Machaccino , Hot

chocolate, Cardamom Tea

Cold Bevarages: Iced Teas,Cold Coffee

.

RED

23

(RIGHT EXECUTION DAILY)

RED (Right Execution Daily) is a measurable tool to measure sales team and distributors performance in the outlets with respect to all parameters of sales

– Cooler

– Brand Pack Availability

– Channel Activation

RED works on three categories :

1) Type Of Outlet (Channel)

a) Grocery – Home Consumption

Packs: PET and Mobile

b) Convenience – medium / Small outlets on main roads, bus stand etc.

Packs: RGB and Mobile

c) Eating & Drinking – Restaurants, sweet shops, bakery etc.

Packs: 300 ml & Mobile

2) There are various volume of outlet :

PLATINUM: VOLUME MORE THAN 1200

DIAMOND: 800 -1200CS

GOLD: 500-799CS

SILVER: 200-499CS

BRONZE: LESS THAN 200 CS

THERE ARE 3 CONSUMER PROFILES:

HIGH Income area

24

MIDDLE Income area

LOW Income area

THESE ARE RED MEASURES TP PICTURE OF SUCCESS:

1. Visi-cooler presence & condition.

2. Visi-cooler position, display & Brand Order Compliance

3. Availability Standards

4. Activation Elements

5. Price communication

On RED scoring sheet there are 3 parts:

VISI-Cooler – it has to be as per standard, it should be placed in the prime position, it is checked and other related things are considered

Availability – here the availability of sparkling and stills are checked and these are to be according to the SKU’S (STOCK KEEPING UNIT)

Activation – It includes availability of flex board ,flange,3 tier racks ,shelf display , cooler top , cut-case

OBJECTIVES OF RED :

It lays down the standards for brand norms, in – outlet activation elements

It lays down specific norms for enhanced in – outlet brand execution

It tracks the brands and brand pack penetration

It allows for development of short, mid and long term strategies, tactic plans

Due to audit characteristic of RED, each brand can be measured against specific execution goals.

BENEFITS OF RED:

25

● RED helps to find out the promotion activities of the company and help to make relevant changes according to their rivalry company.

● This study ensures the availability of the product in the market.

● The study also helps in the evaluation of the market developer .RED helps to maintain the outlets in a well designed way to attract consumers.

IMPORTANT TERMS RELATED TO CHANNELS

GROCERY: Store stocking a variety of regular use household items. The channel provides an opportunity for penetration as it propels home consumption.

It includes all the kiriana stores, departmental stores, supermarkets, provision stores etc.

E&D : Eating and drinking ranges from high end restaurants to small dhabas .these outlets offer multiple opportunities to enhance sales as people usually order something to drink along with food.

There are 2 types of E&D : E&D1 AND E&D2

CONVIENENCE :These offer pan bidi and the stock includes cigarettes ,mint, confectionary and CSD .it also covers STD and ISD phone booths as well .customers generally drop by All day long hours for a break .this is extremely useful in driving impulse purchase.

26

RECOMMENDATIONS

This is one of the most important and most difficult part of the study. I arrived at

certain recommendations for COCA-COLA co India after the analysis of the data.

Some of the important recommendations are as follows.

Many complains of retailer does not listen by the company. So it should be

taken into consideration.

Company does not provide all stock. So it should be delivered on time as well

as much required by the retailer.

Some Retailers wants large size of visi coolers. So this should be also taken

into consideration.

Customer grievances are also not properly listened by merchandiser which

effects hold of the customer with the company.

We need to come up with more pack sizes because RGB is losing its market.

As already mentioned Visi-coolers are a major reason of dissatisfaction

among the retailers. The periodical maintenance check of Visi-coolers should

be done.

We need to come with more flavors because Real Juices and Tropicana

Juices are leading the market with 12-15 flavors.

We need to focus on margins because retailers go their where they get high

margins on product.

We must visit all RED outlets where the activation elements are missing and it

must be activated immediately.

27

The company should make hindrance free arrangement for its customers to

make any feedback or suggestions.

The visibility of any product plays an important role in making the customer,

aware about it and is vital for the growth and development of any product.

A strong watch should be kept on distributors also, because in some cases

they are found to be cheating the retailers and affecting the goodwill of the

BRAND.

28