coca cola sip report prateek
TRANSCRIPT
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HINDUSTAN COCA-COLA BEVERAGES PVT.LTD
APROJECT REPORT
ON
Distribution Expansion of Hindustan Coca-Cola
Beverages Private Limited to drive business in
inactive outlets" (Horizontal Expansion)
INJAIPUR, RAJASTHAN
SUBMITTED TO:DR.S.K.PANDEY
SUBMITTED BY: PRATEEKSHUKLAPGDM,2
NDYEAR
JAIPURIA INSTITUTE OF MANAGEMENT,JAIPUR
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CERTIFICATE OF ORGINALITY
This is to certify that the project titled Distribution Expansion of Hindustan Coca-Cola
Beverages Private Limited to drive business in inactive outlets" (Horizontal Expansion) -submitted by me to Jaipuria Institute of Management, Jaipur in partial fulfillment of the Post-
Graduation Diploma in Management, and this report has not been submitted elsewhere.
Date: Prateek Shukla
Jaipuria Institute of Management, Jaipur
SIGNATURE OF FACULTY MENTOR
__________________________________
(Dr. S.K. Pandey)
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LISTOFFIGURES:
SR NO. TOPIC PAGE NO.
1. Market shares of soft drinks in India. 11
2. Beverage Industr y in India 13
3. Vision for sustainable growth 22
4. Sales Chart of Products 28
5. Opportunity to new outlets 32
6. Impact of new outlets on business 43
7. Impact of new outlets on distributors 43
LISTOFCHARTS:
SR NO. TOPIC PAGE NO.
1. Brand sold in market 37
2. Pack preferred for profit margin 38
3. Pack variant more in demand 39
4. Product range of coke preferred for sale 39
5. Brands Oriented decisions 40
6. Asking Schemes 41
7. Factors affects cold drink demand 41
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TABLEOFCONTENT
SR NO. TOPIC PAGE NO.
Preface 5
Acknowledgement 6
Executive Summary 7
1. Introduction 9-14
1.1 A Brief Insight : The FMCG Industry in India: 9
1.2 Contributions of Indian FMCG Industry: 9
1.3 A Brief Insight : The Beverages Industry in India: 10
1.4 Soft Drinks Market in India 14
Objective of the study 16
2. About Company 18-22
3. Products 24-28
Literature Review 29
4. About Project 31-33
6. Methodology 34-35
7. Analysis & Results 36
7.1 Findings of my project 37
Result 42
8. Conclusion 44
9. Recommendations 45
10. References 46
11. Annexures 47-49
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PREFACE
In summer the consumption of soft drinks is more due to hot weather in this time chilled
weather is needed everywhere and everybody irrespective of age difference. In the marketpeoples not only need water, but they want some taste too. Here comes the need of soft
drinks: it has become an essential part of market as people like it in addition to the bottles,
now days packages of soft drinks i.e. Tin cans, Pet packs of i.e. Litters canisters and
dispensers are introduced to enhance the impact in sales .
The PGDM curriculum is designed in such a way that student can grasp maximum
knowledge and can get practical exposure to the corporate world in minimum possible time.
Business schools of today realize the importance of practical knowledge over the theoretical
base.
The research report is necessary for the partial fulfillment of PGDM curriculum and it
provides an opportunity to the student in understanding the industry with special emphasis on
the development of skills in analyzing and interpreting practical problems through the
application of management theories and techniques. It is a new platform of learning through
practical experience, which incorporates survey and comparative analysis. It gives the learner
an opportunity to relate the theory with the practice, to test the validity and applicability of
his classroom learning against real life business situations.
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ACKNOWLEDGEMENT
Apart from the efforts of an individual, the success of any project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my gratitudeto the people who have been instrumental in the successful completion of this project.
I wish to express our deep gratitude to my industry mentor, Mr. Himanshu Mittal and S.T.L
Mr. Ved Prakash Pandey for guiding me through this project and for always being there to
help me cross hurdles.
I would also like to convey my special thanks to Hindustan Coca-Cola beverages ltd and
Jaipuria Institute of Management, Jaipur for giving me the opportunity to do such projectsthat help in understanding the concepts better.
The guidance and support received from my mentor Dr. S.K.Pandey who contributed and
who are contributing to this project, was vital for the success of the project.
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EXECUTIVE SUMMARY
Coca - Cola, the product that has given the world its best - known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca - Cola Company is the worlds leading manufacturer,
marketer and distributor of non - alcoholic beverage concentrates and syrups, used to produce
nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning
operators, distributors, fountain retailers and fountain wholesalers. Coca - Cola was first
introduced by John Syth Pemberton, a Pharmacist, in the year 1886 in Atlanta, Georgia when
he concocted caramel - colored syrup in a three - legged brass kettle in his backyard. He first
distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and
customers bought the drink for five cents at the soda fountain. Carbonated water was teamed
with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed
delicious and refreshing, a theme that continues to echo today wherever Coca - Cola is
enjoyed.
Coca - Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed that
Coca - Cola became the world - famous brand it is today. Coca - Cola was the leading softdrink brand in India until 1977, when it left rather than reveals its formula to the Government
and reduces its equity stake as required under the Foreign Regulation Act (FERA) which
governed the operations of foreign companies in India. In the new liberalized and deregulated
environment in 1993, Coca - Cola made its re - entry into India through its 100% owned
subsidiary, HCCBPL, the Indian bottling arm of the Coca - Cola Company .
The main objective of this report attempts to reveal the secrets and tools which would be
helpful in horizontal market expansion for the whole coca cola product range by first
analyzing and then enhancing the market of Coca Cola. The study is divided into two parts.
First is to analyze the existing market, try to find their problems and reasons for doing
business with company. In second part untouched market was explored and their reasons for
not doing business with company where studied. Thus report will provide an opportunity to
know existing and new retailers psychographic needs, it may provide an opportunity to the
Coca - Cola to frame a good future plan to satisfy maximum needs, taste preferences of the
retailers and established its guiding role in the market of Jaipur & in marketing plan for
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different areas.
1.Introduction
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1.1A Brief Insight : The FMCG Industry in India:The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in
the country and over the years has been growing at a very steady pace. The sector basically
consists of consumer non-durable products, which broadly consists, personal care, household
care and food & beverages.
The Indian FMCG industry is largely classified as organized and unorganized. This sector is
also buoyed by intense competition. Besides competition, this industry is also marked by a
robust distribution network coupled with increasing influx of MNCs across the entire value
chain. This sector continues to remain highly fragmented.
The FMCG industry is volume driven and is characterized by low margins. The products arebranded and backed by marketing, heavy advertising, slick packaging and strong distribution
networks. The FMCG segment can be classified under the premium segment and popular
segment. The premium segment caters mostly to the higher/upper middle class which is not
as price sensitive apart from being brand conscious. The price sensitive popular or mass
segment consists of retailers belonging mainly to the semi-urban or rural areas who are not
particularly brand conscious. Products sold in the popular segment have considerably lower
prices than their premium counterparts.
1.2:Contributions of Indian FMCG Industry:
After registering a 12% growth in 2009 despite the economic downturn, major FMCG firms
remain optimistic and expect a 15% growth in 2010. The Indian FMCG industry sales are
estimated to grow 14.5% to reach RS 854.7 Billion. Within the Indian FMCG industry, there
are few sectors that will grow more than 20% during 2009-2010, like shaving cream at 23%,
skin/fairness cream at 22%, shampoos at 21.3%, skin care & cosmetics at 20%, tooth powder
at 22% and other care products.
The prediction of higher sales growth of FMCG products is based on strong economic
fundamentals such as rising disposable income of people. Now people can afford to spend on
quality FMCG products. Moreover, increasing salaries, along with rising trend of perks in the
corporate sector at regular intervals, have increased peoples spending power on lifestyle
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products. Even government employees too are expending on lifestyle products helping
FMCG sector to grow rapidly.
Apart from this, India is rapidly changing into an urban country and with that, peoples
preference for lifestyle products is growing. Hence, the Indian FMCG industry is
experiencing strong growth in some categories such as skin care, anti-aging solution,
deodorants, fairness products and mens products. In addition, the emergence of organized
retail such as supermarkets, and shopping malls is also playing an important role in bringing
boom in the Indian FMCG market. The young generation of consumers is driving the demand
for lifestyle products.
Consumers are at the front seat changing and redefining the branding and marketing strategy
and marketplace for the retail products that are ultimately boosting the retail sales in the
country. However, the fear of dissociation with earlier consumers still persists as they
embrace and prefer to stick to established brands only. The main reason for this dissociation
is weak distribution channels and marketing strategy in the country.
According to a Research Analyst at RNCOS, The demand for lifestyle products is boosted
by the rising aspiration and modern facilities. As the spending power of consumers is going
up, the sales of FMCG products in India will rise too. Therefore, companies need to improvethe quality of products and employ right marketing mix by implementing new technologies
such as Customer Relationship Management.
1.3A Brief Insight : The Beverages Industry in India:
FOOD:
According to the Ministry of Food Processing, the size of the Indian food processing industry
is around US$ 65.6 billion including US$ 20.6 billion of value added products. Of this, the
health beverage industry is valued at US$ 230 billion; bread and biscuits at US$ 1.7 billion;
chocolates at US$ 73 million and ice creams at US$ 188 million. The size of the semi-
processed/ready to eat food segment is over US$ 1.1 billion. Large biscuits & confectionery
units, soya processing units and starch/glucose/sorbitol producing units have also come up,
catering to domestic and international markets. The three largest consumed categories of
packaged foods are packed tea, biscuits and soft drinks.
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BEVERAGES:
The Indian beverage industry faces over supply in segments like coffee and tea. However,
more than half of this is available in unpacked or loose form. Indian hot beverage market is a
tea dominant market. Consumers in different parts of the country have heterogeneous tastes.
Dust tea is popular in southern India, while loose tea in preferred in western India. The urban-
rural split of the tea market is 51:49 in 2000. Coffee is consumed largely in the southern
states. The size of the total packaged coffee market is 19,600 tons or US$ 87 million. The
urban rural split in the coffee market is 61:39. The total soft drink (carbonated beverages and
juices) market is estimated at 284 million crates a year or US$ 1 billion. The market is highly
seasonal in nature with consumption varying from 25 million crates per month during peak
season to 15 million during offseason. The market is predominantly urban with 25 per cent
contribution from rural areas. Coca cola dominate the Indian soft drinks market. Mineral
water market in India is a 65 million crates (US$ 50 million) industry. On an average, the
monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during
peak season.
In India, beverages form an important part of the lives of people. It is an industry, in which
the players constantly innovate, in order to come up with better products to gain more
retailers and satisfy the existing retailers.
F ig 1: M arket shares of soft drinks in I ndia.
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The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
a. Alcoholic, non - alcoholic and sports beverages
b. Natural and Synthetic beverages
c. In - home consumption and out of home on premises consumption.
d. Age wise segmentation i.e. beverages for kids, for adults and for seniorcitizens
e. Segmentation based on the amount of consumption i.e. high levels ofconsumption and low levels of consumption.
If the behavioral patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. Beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to make
the industry more affordable.
The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
Alcoholic, non-alcoholic and sports beverages.
Natural and Synthetic beverages.
In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
Segmentation based on the amount of consumption i.e. high levels of consumption
and low levels of consumption.
Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:
The quality and the consistency of beverages needs to be enhanced so that retailers are
satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and safe feeling
that the retailers have while consuming the beverages.
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Retailer education is a must to bring out benefits of beverage consumption whether in
terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige
relevant to the category.
Communication should be relevant and trendy so that retailers are able to find anappeal to go out, purchase and consume.
F igu r e2 : Beverage I ndust r y in I nd ia
SOFT DRINKS
CARBONATED
COLA FLAVOURED
THUMS UP,COKE PEPSI, DIET
NON-COLA
FLAVOURED
ORANGE
FLAVOURED
FANTA,MIRINDA
LIME FLAVOURED
CLEAR LIME
SPRITE,DEW
CLOUDY LIME
LIMCA
NON
CARBONATED
MINERAL WATERMANGO
FLAVOURED
MAAZA,SLICE
,FROOTI
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1.4Soft Drinks Market in IndiaIndia is one of the top five markets in terms of growth of the soft drinks market. The per
capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum
in the year 2009. It is very low compared to the corresponding figures in US (600+ bottles
per annum). But being one of the fastest growing markets and by the sheer volumes, India is
a promising market for soft drinks. The major players in the soft drinks market in India are
COCA- COLA Co and PepsiCo, like elsewhere in the world. Coca-Cola acquired a number
of local brands like Limca, Gold Spot and Thums Up when it entered Indian market for the
second time. COCA- COLA Cos soft drink portfolio also consists of Fanta and Sprite along
with COCA- COLA. The market share of each of the company is more or less the same,
though there is a conflict in the estimates quoted by different sources.
The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink
content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malic
acid, Colors, Preservatives, Anti-Oxidants and other emulsifying agents, etc.
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RATIONALE OF THE STUDY
The biggest question of any study is why we are doing that study? Jaipur is capital of
Rajasthan and one of the hottest place in India so this leads to a good chance of selling of soft
drinks. In summer time every company has a good opportunity to grow in terms of sales as
well as to introduce new products which will able to attract new customers and increase
company market share.
To increase its market share with bronze outlet / inactive outlet and open new outlet is not an
easy task because of many reasons which are discuss in detail in my report. Pepsi India co. ltd
also knew the market situation therefore they also gave many benefits to retailers to retain its
place on the top in Jaipur market. This strategy of Pepsi Co ltd to penetrate the market this
really cost a lot to Coca-Cola India ltd which do not have any answer of outstanding schemes
Coca-Cola must had to think a lot in the scheme direction detailed discussion is being done in
my report.
So this is very important to touch new market from where company is not getting any
business. My report will try to find out the answers that what are the reasons company
facing with these markets?
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OBJECTIVEOFTHESTUDY
My objective of this study is very simple, I want to explore the market situation as well as to
increase the market share by distribution expansion (HE) so that Coca-Cola can became
market leader in Jaipur market with full customer satisfaction.
The objectives were:
To increase market share of Hindustan Coca-Cola Beverages Private Limited (Jaipur)
and improve the current market position of the company.
To develop new outlets as well as to maintain the output from existing Bronze
Outlets.
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2. About Company
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CHAPTER 2: THE COCA COLA COMPANY
2.1: HISTORY
John Smyth Pemberton, a pharmacist, first introduced Coca-Cola in the year 1886 in Atlanta,
Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his
backyard. He first distributed the product by carrying it in a jug down the street to Jacobs
Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated
water was teamed with the new syrup, whether by accident or otherwise, producing a drink
that was proclaimed delicious and refreshing, a theme that continues to echo today
wherever Coca-Cola is enjoyed.
Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and
penned Coca-Cola in the unique flowing script that is famous
worldwide even today. He suggested that the two Cs would look well in
advertising. The first newspaper ad for Coca-Cola soon appeared in The
Atlanta Journal, inviting thirsty citizens to try the new and popular soda
fountain drink. Hand-painted oil cloth signs reading Coca-Cola
appeared on store awnings, with the suggestions Drink added toinform passersby that the new beverage was for soda fountain
refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr.
Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a
distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton
grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of
the beverage he created. He gradually sold portions of his business to various partners and,
just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an
entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights
and acquire complete ownership and control of the Coca-Cola business. Within four years,
his merchandising flair had helped expand consumption of Coca-Cola to every state and
territory after which he liquidated his pharmaceutical business and focused his full attention
on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank
Robinson and two other associates, Mr. Candler formed a Georgia corporation named the
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Coca-Cola Company. The trademark Coca-Cola, used in the marketplace since 1886, was
registered in the United States Patent Office on January 31, 1893.
The business continued to grow, and in 1894, the first syrup manufacturing plant outside
Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los
Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys
incorporation, Mr. Candler announced in his annual report to share owners that Coca-Cola is
now drunk in every state and territory in the United States.
As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new
building erected in 1898 was the first headquarters building devoted exclusively to the
production of syrup and the management of the business. In the year 1919, the Coca-Cola
Company was sold to a group of investors for $25 million. Robert W. Woodruff became the
President of the Company in the year 1923 and his more than sixty years of leadership took
the business to unsurpassed heights of commercial success, making Coca-Cola one of the
most recognized and valued brands around the world.
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HINDUSTAN COCA-COLA BEVERAGESPRIVATE LIMITED
2.2: ABOUT THE COMPANY
Every person who drinks a Coca - Cola enjoys a moment of refreshment and shares anexperience that millions of others have savored. All of those individual experiences combined
have created a worldwide phenomenona truly global brand. On the distribution front, 10 -
ton trucks, open - bay three - wheelers that can navigate the narrow alleyways of Indian
cities, ensure availability of Coke brands in every nook and corner of the country. The
company - owned Bottling arm of the Indian Operations, Hindustan Coca - Cola Beverages
Private Limited is responsible for the manufacture, sale and distribution of beverages across
the country.
Coca - Cola was the leading soft drink brand in India until 1977, when it left rather than
reveals its formula to the Government and reduces its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in
India. Coca - Cola re - entered the Indian market on 26 t h October 1993 after a gap of 16
years, with its launch in Agra. An agreement with the Parle Group gave the Company instant
ownership of the top soft drink brands of the nation. With access to 53 of Parles plants and a
well set bottling network, an excellent base for rapid introduction of the Companys
International brands was formed. The Coca - Cola Company acquired soft drink brands like
Thumps Up, Gold - Spot, Limca, Maaza, which were floated by Parle, as these products had
achieved a strong consumer base and formed a strong brand image in Indian market during
the re - entry of Coca - Cola in 1993 . Thus these products became a part of range of products
of the Coca - Cola Company.
In the new liberalized and deregulated environment in 1993, Coca - Cola made its re - entry
into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca
- Cola Company . However, this was based on numerous commitments and stipulations
which the Company agreed to implement in due course. One such major commitment was
that, the Hindustan Coca - Cola Holdings would divest 49% of its shareholding in favor of
resident shareholders by June 2002.
Coca - Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing
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locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling
Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture
process of a range of products for the company . It also has a supporting distribution network
consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services
required to cater to the Indian market are made locally, with help of technology and skills
within the Company. The complexity of the Indian market is reflected in the distribution fleet
which includes different modes of distribution, from 10 - ton trucks to open - bay three
wheelers that can navigate through narrow alleyways of Indian cities and trademarked
tricycles and pushcarts.
2.3: MANIFESTO FOR GROWTH
2.3.1: VALUES:
To achieve sustainable growth, we have establ ished a vision wi th clear goals.
Profit: Maximizing return to share owners while being mindful of our overall
responsibilities.
People: Being a great place to work where people are inspired to be the best they can
be.
Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples desires and needs.
Partners: Nurturing a winning network of partners and building mutual loyalty.
Planet: Being a responsible global citizen that makes a difference.
2.3.2: MISSION:
We are guided by shar ed values that we will l ive by as a company and as indi viduals.
Leadership: "The courage to shape a better future"
Passion: "Committed in heart and mind"
Integrity: "Be real"
Accountability:"If it is to be, its up to me"
Collaboration: "Leverage collective genius"
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Innovation: "Seek, imagine, create, delight"
F ig 3:Vision for sustainable growth
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3.Products
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Product Size & Packs:
The Coca-Cola Company offers a wide range of products to the customers including
beverages, fruit juices and bottled mineral water. The Company is always looking to innovate
and come up with, either complete new products or new ways to bottle or pack the existing
drinks. The Coca-Cola Company has a wide range of products out of which the following
products are marketed by HCCBPL.
COCA-COLA:-
In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated
its departure. Coca-Cola made its return to the country in 1993 and made significant
investments to ensure that the beverage is available to more and more people, even in remote
and inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions of
IndiaCricket, movies, music & food. Coca-Colas advertising campaigns Jo
ChahoHoJaye&Life HoTohAise were very popular & had entered youths vocabulary. In
2002.Coca-Cola launched its iconic campaign ThandaMatlab Coca-Cola which sky
rocketed the brand to make it Indias favourite soft drink brand.
GLASS PET CAN FOUNTAIN
200ml, 300ml,
500ml, 1000ml
500ml, 1.5L, 2L,
2.25L, 500ml, 100ml
330 ml VARIOUS SIZES
Table - 1
LIMCA:-
Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1
sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and
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lemoni bite combined with the single minded proposition of the brand as the provider of
Freshness.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from Nimbu +
Jaise hence Lime Sa, Limca has lived up to its promises of refreshment and has been the
original thirst choice of millions of customers for over 3 decades.
GLASS PET CAN FOUNTAIN
200ml, 300ml,
500ml, 1000ml
500ml, 1.5L, 2L,
2.25L, 500ml, 100ml
330 ml VARIOUS SIZES
Table - 2
THUMS UP:-
Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up
is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude.
This brand clearly seeks to separate the men from the boys.
GLASS PET CAN FOUNTAIN
200ml, 300ml,
500ml, 1000ml
500ml, 1.5L, 2L,
2.25L, 500ml, 100ml
330 ml VARIOUS SIZES
Table - 3
SPRITE:-
Sprite a global leader in the lemon lime category is the second largest sparkling beverage
brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a
true teen icon.
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RGB PET CAN FOUNTAIN
200ml, 300ml 500ml, 600ml,
1250ml, 1500ml,
2000ml, 2250ml
330 ml VARIOUS SIZES
Table4
FANTA:-
Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong
market place and is identifies as The Fun Catalyst. Perceived as a fun youth brand, Fanta
stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings
but also helps free spirit thus encouraging one to indulge in the moment. This positive
imagery is associated with happy, cheerful and special times with friends.
GLASSPET CAN FOUNTAIN
200ml, 300ml 500ml, 1.5L, 2L,
2.25L, 500ml, 100ml
330 ml VARIOUS SIZES
Table5
MINUTE MAID PULPY ORANGE:-
The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. The company developed a process that
eliminated 80% of the water in the orange juice, forming a frozen concentrate that when
reconstitute created orange juice. They branded it Minute Maid a name connoting the
convenience and the ease of preparation. Minute Maid thus moved from a powdered
concentrate to the first ever orange juice from concentrate.
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The launch of Minute Maid in India (started with the south of the country) is aimed to further
extend the leadership of Coca-Cola in India in the juice drink category.
Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.
MAAZA:-
Maaza was introduced in late 1970s. Maaza has today come to symbolise the very spirit of
mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza
is the mango lovers first choice.
RGB PET POCKET MAAZA
200ml, 250ml 600ml, 1.2L 200ml
Table6
KINLEY:-
The importance of water can never be understated, Particularly in a nation such as India
where water governs the lives of the millions, be it as a part of everyday ritual or as the
monsoon which gives life to the sub-continent. Kinley water comes with the assurance of
safety from the Coca-Cola Company.
Available in PET 500ml and 1000ml.
KINLEY SODA:-
Kinley soda water is carbonated water. Kinley soda can be enjoyed on the rocks and mixed with other
hard drinks. It blends well with all drinks, and in fact, it can be consumed by itself. Hindustan Coca
Cola Beverages Pvt. Ltd. (HCCBPL) is the bottling arm of Kinley sodas in India and is also involved
in the manufacture and distribution of its beverages in India.
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SALES CHART OF PRODUCTS
F ig 4:Sales Char t of Products
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LITERATUREREVIEW
This study on inventory management is being done on such a way that one can easily
understand and after reading this you have anxiety to know more about it same thing happens
with me.
Ms konkanna dass has detailed out the practices and policies adopted in the company and
highlighted noteworthy practices in her study. She has described recent trends in operations
in the areas chosen.
She also have identified a problem the company is facing, analyzed it and have suggested a
solution for the same.
The Coca-Cola Company is the worlds largest beverage company. It is recognized as the
worlds most valuable brand. It markets four of the worlds top five soft drink brands like
Diet Coke, Fanta, and Sprite along with water, juices, tea, coffee and energy drinks. It has
one of the worlds largest beverage distribution systems spread over 200 countries selling 1.6
billion servings a day.
Coca-Cola India manufactures and markets brands like Coca-Cola, Thums Up, Fanta, Fanta
Apple, Limca, Sprite, Mazaa, Minute Maid, Burn, Kinley, Georgia tea and coffee, Nestea and
Fanta Fun Taste. The company employs 1, 50,000 people and has more than 1 million
retailers. It is the largest domestic buyer of sugar and one of the top buyers of mango pulp. It
positively impacts Glass, Plastic, Resin manufacturers, Sugar, Automobiles, and Banking etc.
Its mission statement is called the Coca-Cola Promise The Coca-Cola Company exists to
benefit and refresh anyone that it touches. This project report is about Coca-Colas supply
chain with respect to its inventory, quality and vendor management.
By going through this study I highly motivated to know more about the company working
style and challenges which they faces on daily basis. Thanks to my institute I got a chance to
work with Hindustan coca cola beverages pvt ltd where I got the project counter mountain
dew this will help me to know about the sales and distribution of beverages in India.
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4. About Project
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ABOUT PROJECT:
The work assigned was to analyze and enhance the market opportunities for Coca Cola in
Jaipur, by creating awareness to retailers about the brand value, profit ratio and to find out the
factors which are creating impediment in its expansion.
Thus project was divided in to two parts: -
F ir st Part: -
Analyze the needs and wants of existing retailers (customers).
Find out the problems faced by them while doing business with Coke.
Reasons of doing business with Coke.
For this survey on 180 existing outlets was done.
Second Part: -
Find out the reasons for not doing business with Coke from new retailers (customers).
For this survey on 100 new outlets was done.
Data Coll ection:
Data was collected from different locations of Jaipur as: -
Sindhi Colony
Adarsh Nagar
Tonk Road
Hassanpura
Raja Park
Jawahar Nagar
Janata Colony
Nandpuri
Railway Station
Vaishali Nagar
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TYPES OF EXPANSION:
Expansion can be done both vertically & horizontally and for this different questionnaires
were prepared for both existing and new retailers.
Vertically expansion:
It means increasing the existing outlets capacity of sales. There are following techniques used
in vertical expansion:
RED ( Right Execution Daily)
PJP (Pre Journey Planner)
Pre Sell
Horizontal expansion:
It means opening new outlets. It is done to increase the market share and to increase the
visibility of product in the market which will ultimately lead to higher sales volume and
larger market share.
Reasons for hor izontal expansion :
F igur e 5: Opportuni ty to new outlets
Above data shows that Coke is far behind f rom i ts competitors in case of market coverage
thus huge potenti al for expansion .
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Benefi ts of H orizontal Expansion:
Improves profitability of distributors
Helps improve route productivity
Incremental revenue for the business Helps in distributing the market demand
Increase market visibility
Advantage of H orizontal Expansion over Vertical Expansion:
Both expansion techniques are meant for increasing sales volumes. But in horizontal
expansion company can earn more profits by spending less . Lets see the profit story of
horizontal expansion.
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5. Methodology
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In Rajasthan Jaipur is the main city from where all the products are sent in different cities
According to the distributers demand. Companies officials working in each cities who makes
sales and kept an eye on stock of distributer.
They convinced distributer and retailer for secondary i.e. sales. A.S.M is the responsible
person who got one area under which 7-8 cities are allotted to him he work with his team and
target his market according to company guidelines.
There are 450 distributers in Rajasthan.
Data Collection Methods:
Personal i nteraction method:
I made interactions with some retailers during market survey, who want to give some extra
information other than questionnaire and who were busy and not ready to fill the
questionnaire. This was conducted without the help of any questionnaire. The objective was
to draw a general understanding about their problems, performance of the distributer, their
preferences and other useful information. This technique helped to clear doubts arising due to
observation method.
Questionnair e method:
Questionnaire was divided in two parts. First part was for exiting retailers (customers). Theother part was for new retailers. The basic aim of both was to analyze the psychology, need &
wants of retailers.
Sampling Unit:
The retailers of Grocery shop, E & D, Convenience shop, Medicine store and Juice
corners was selected from different places of Jaipur .
Sampling Size: 150 Outlets.
Sampling procedure:
As Coke has mainly three types of modules of customers as: - Grocery store,
Convenience store & E&D with different grades so sampling size was divided
according to area, type of store & VPO of the store .
Sampling method:Data were collected by retailer survey. The retailers were directly
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contacted and interviewed at their retail counter.
6. Analysis &
Results
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ANALYSIS:
Survey Analysis:
The survey was conducted in different location of Jaipur. A total survey of 150 outlets was
conducted. Out of 150 outlet 100 was bronze outlet and rest of 50 was new outlet.
Observational Analysis:
1. I visited about 250 outlets.2. Out of 250 shops covered in different areas, I focused on covering different shops according to
location, so that I can know where coca-cola products have the best penetration. Among the
shop covered, 17% were on the cross roads, 35% were on the main road, 28% in the market
and 20% were near a residential area.
3. I assigned the various shops covered into different categories. The various categories coveredwere Grocery, Confectionary, Bakery, Juice Shops, Ice Cream parlors, Restaurant, Food
Points, Dairy, and Pan Shops.
Findings:
Here are some basic factors which affects the sale of coke brands as well as horizontalexpansion.
1. Which beverage brand you sell in the market?
COKE PEPSI OTHERS MIX
37%
25%
17%21%
BRAND SOLD IN THE MARKET
BRAND SOLD IN THE MARKET
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Chart 1:Brand sold in market
I nterpretation:
As per the above question many of the retailers prefer selling both the brands but many find
it difficulty in affording the visi cooler cost but mostly the outlets that are single brandoriented prefer selling Coke, because the quality is believed to be high as compared to other
brands.
2.Which pack would you prefer for sale in terms of profit margin?
Chart 2:Pack preferr ed for prof it margin
I nterpretation:
The pack size demand and it type depended on factors of whether the shop was E&D type or
IC ,FC shop if it was a restaurant bar they preferred purchase of 600ml as there was no risk
from broken bottles on the other hand small areas preferred 200ml as it costs less and can
give a big margin.
Coke got the big market from RGB and PET bottles. That too in RGB sector 200ml was the
most selling pack. Coming to PET bottles all have the probable equal share but 600ml was
little bit high sale when comparing with 1ltr 1.5ltr and 2ltr packs.
0%
5%
10%
15%
20%
25%
30%
200ML 300ML 600ML 1.25LTR 2.25LTR
20%
17%
26%
20%
17%
PACK PREFERRED FOR PROFITMARGIN
PACK PREFERRED FOR
PROFIT MARGIN
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3. Which pack variant is more in demand?
Chart 3: Pack variant more in demand
I nterpretation:
Coke got the big market from RGB and PET bottles. Tetra pack was consumed in large
quantities because of the demand as per the season. RGB sector was the most selling pack.
Coming to PET bottles all have the equal share but 600ml was little bit high sale when
comparing with 1ltr 1.5ltr and 2ltr packs.
4. Which brand you basically prefer for sale in your outlet?
0%
10%
20%
30%
40%
50%
60%
RGB PET
BOTTLES
TETRA
PACKS
TIN CANS
30%
18%
52%
0%
PACK VARIANT MORE IN DEMAND
PACK VARIANT MORE IN
DEMAND
CO FA LI SP TH MZ
16%
10%
17%13%
26%
18%
PRODUCT RANGE OF COKE
PREFERRED FOR SALE
PRODUCT RANGE OF COKE PREFERRED FOR SALE
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Chart 4: Product range of coke preferr ed for sale
I nterpretation:
Coming to most selling brand in Jaipur city Thums up occupied majority of the market share
is grabbed by Thums up only after that Maaza is the 2nd major selling brand from the coke
after those Limca and Coke listed.
5. You basically keep brands according to?
Chart 5: Brands Oriented decisions
I nterpretation:
Whatever the present varieties coke had in the market with those consumers are very much
happy. For this question maximum retailers said yes they keep the brands as per their
requirement of their customers. Coke getting more appreciation in this concept.
But there were also those retailers who demanded the brands as per the schemes if they felt
the new MER could benefit them they waited back for slab schemes to be opened, and were
least bothered about their customers requirement.
84%
16%
BRANDS ACCORDING TO
CUSTOMER DEMAND SCHEME-FOCUSSED
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6. Do you ask for schemes while purchasing a particular pack of CSD?
Chart 6:Asking Schemes
I nterpretation:
Schemes were given by the Coca-Cola Co. to boost up the sales and generally it was provided
to benefit the retailers and to increase their margin, therefore it was expected from most of the
retailers that they always ensured whether the salesman is giving the appropriate scheme and
is it benefitting him or not.
7. What are other factors which affects sell?
Chart 7:Factors aff ects cold dri nk demand
98%
2%
ASKING SCHEMESYES NO
Factors affects cold drink demand
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o WEATHER-58%
o CONSUMER TASTE10%
o PRICE32%
I nterpretation:
On the basis of my survey I found that weather is the most critical factor in the demand of
cold drink. On the basis of my exploratory research I found that consumer taste and price are
other two important factors but weather is the most important among them.
RESULTS:
In Jaipur Area Company governs from its regional office. Jaipur is divided among 5 STL(Sales Team Leader) and 6 MD (Market Developer) assigned to each STL. Most of the MD
look after its cooler outlet. As an intern I had job to increase market share of Hindustan Coca-
Cola Beverages Private Limited (Jaipur) and improve the current market position of company
& to develop new outlets as well as to maintain the output from existing Bronze Outlets.
F inding of M y Project:
Average per vehicle sale is 100 crate per day there are 15 vehicles running on daily basis per
day sale is 1500 caret. A city where we are market challenger with 45 % share its remarkable
that Coca-Cola sales 600 caret per day by this we can see how big market potential Jaipur has.
In duration of 45 days of internship I visited around 250 shops and sold 700 carets of different
product of Coca-Cola. These product prices ranges from Rs. 168 to Rs. 716. So average per
caret is cost around Rs. 422.
So I added 422700 =Rs. 2,95,400 in company sales revenue during duration.
As well as I added around 50 new outlets in company database.
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F ig 7: Impact of new outlets on business
F ig 8: I mpact of new outlets on distri butors
So here by above tables we can understand the effect of new outlets on both business as well
as on distributors in terms of better margin, more return & increased ROI.
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CONCLUSION:
On an overview I conclude my report on the following points:
Jaipur market is a big market & it contribute high demand of cold drink in the market.
Coca-Cola market goodwill is very high but still Pepsi & others market challenger with 45 %
share the reason behind this is the scheme which they offer in Jaipur. On comparison with
Pepsi its very low therefore retailers are prefer Pepsi over Coca-Cola in Jaipur
Bronze Outlets and New Outlets holds a good potential of business so its very important to
take care of them. So we need to focus on following points.
Effective supply chain strategies within the city
Avoid scheme alteration on daily basis
Must offer some special benefits to new and potential outlets like banners, coolers,
stands etc.
In supply chain biggest drawback is salesman who do injustice with schemes as schemes is
being alter on daily basis he pitch retailers constant scheme which leads to decrease in
company goodwill. Sales team leader the person who is person appointed from the company
in the city must take the follow up so that nobody can took such advantage.
By doing so Coca-Cola can become market leader in Jaipur.
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RECOMMENDATION
Pre-orders must be taken to sought the problem of retailers want something and get
something else.
Cooler must being pulled back from those outlets that are not taken our products and
allotted to those who is ready to sell our products.
We must gave initial benefits to those outlets who is ready to sell our products this
will build the trust.
Sprite is the one brand which is most demanded in our portfolio so we must do
something like allotted it in schemes instead of Coke.
Sales man follow up - Sales man is the big problem because they do not convey the
right schemes to retailers so we must follow up them so that retailers got the good
margin and they started pitching our products.
Schemes must had pre deadline so that we can tell retailers that this offer is valid till
this date because of daily fluctuation retailers do not have much trust and many time
chaotic situation arises.
Easy cooler transfer there is many formalities to give cooler and also in pulled them
back so we must cut down those formalities this will motivate employees then they
can do optimum utilization of coolers in the city. In schemes we must gave other flavor too instead of Coke and we can easily do this.
Sales man is not bother about new outlets opening therefore md (market developer) is
being allotted so they must open one new outlet in a day this will increases the market
size.
Route must be re-design in such a manner that one vehicle should cover his whole
route in one day.
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REFERENCES
Websites:
www.cocacolaindia.comOfficial website of Hindustan Coca-Cola India pvt ltd.
Others:
Annual Report Coca-Cola 2012.
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ANNEXURE
RETAILERS
(IN JAIPUR REGION)
JAIPURIA INSTITUTE OF MANAGEMENTQUESTIONNAIRE
Name of the shop:
Name of the owner: .
PH no:.
1. Which beverage brand you sell in the market?a) Coke
b) Pepsi
c) Coke/Pepsi
d) Coke/Pepsi/Others
2. Which pack would you prefer for sale in terms of profit margin?a)
200/300mlb) 600ml
c) 1.25l
d) 2.25l
3. Which pack variant is more in demand?a) RGBs
b) PET BOTTLES
c) TETRA PACKS
d) TIN CANS
4. Which product range of coke you basically prefer for sale in your outlet?a) THUMSUP
b) COKE
c) MAAZA
d) FANTA
e) LIMCA
f)
SPRITE
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5. You basically keep brands according toa) Customers demand
b) Scheme focused
6. Do you ask for schemes while purchasing a particular pack of CSD?a) yes
b) no
7. An Average Sales per Day (No. of Case):8. An Average Sales per Month (No. of Case):9. Are you happy with the schemes given by coca cola?
a)
Yes
b) No
10.According to you company should improve upon?a)Distribution system
b)Sales promotion
c)Schemes
d)Services ( Like replacement of bottles expiry bottles)
11. Have you ever felt cheated by the salesman on schemes?a)Yes
b)No
c)Sometimes
12.What are the reasons of not doing business with Coke?a) Never approached by the company
b) Less Demand
c) Profitability
d) Company Policies
e) Competition from the nearby outlet
f)
Distribution system
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g) Lack or space in shop Non Suitability
h) Any other
13.Why you do business with Coke, give reasons for keeping it.a) Brand Value
b) Better scheme
c) High Demand
d) Good Supply
e) High Profit Margin
f) Good Service Quality
14.Rate the most important factor in cold drink demand(Rate the factor on 7 point scale where 1 is least and 7 is maximum)
a) Weather
b) Price
c) Consumer taste
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