TRAINING REPORTON

Market Execution

At Narmada Drinks Pvt. Ltd. Bilaspur(Authorized Bottler for Coca-Cola India)

OnMarch 30, 2010

Submitted To:- Submitted By:-Mr. Pramod Bhatt Namit NamdeoMarket Execution Manager Sourabh Kapre Narmada Drinks Pvt. Ltd.

Certificate

It is to be certified that Mr. Namit Namdeo and Mr. Sourabh Kapre has completed successfully the required Management training for the part fulfillment of degree of Master

of Business Administration, working as a management trainee from Feb 11th to Mar 28th

2010 in Narmada Drinks Pvt. Ltd. Sirgitti industrial area Bilaspur (C.G.).

Mr. Pramod BhattMarket Execution ManagerNDPL Pvt. Ltd.Sirgitti Industrial area,Bilaspur (C.G.)

Namit Namdeo Sourabh Kapre MBA (III rd Semester)

ACKNOWLEDGEMENT

We would like to thank Mr. Pramod Bhatt, Market Execution Manager, Narmada

Drinks Pvt. Ltd. Bilaspur .Without whom an training program with Narmada Drinks Pvt.

Ltd.,Franchise of Coca-Cola India. We are grateful to work with a him for having taken

time off his busy schedule and spoken to the concerned person to get us the training

program. We express our gratitude to the Narmada Drinks Pvt. Ltd. For having given us

opportunity them and make the best of our training program. We thank our trainers, Mr.

Pramod Bhatt for having trained us and constantly guided and supported us throughout the

training period. My heart full gratitude also goes out to the staff and employees at NDPL

for having co-operated with us and guided throughout the 45 days of our training program.

We thank our respective institutes for having given us this opportunity to put to practice,

the theoretical knowledge that we imparted from the program. We would like to thank Dr.

Hitendra Bargal (HOD, Patel College Of Mgmt) for having supported us for the training

program. We take this opportunity to thank our parents and friends who have been with us

and offered emotional strength and moral support.

INDEX

1. Introduction-Coca cola

2. Beverage Industry In India

3. Introduction-NDPL

4. Market Execution & Sales

5. Horizontal Expansion and HMD

6. Findings

7. Suggestions

8. Conclusion

Introduction

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

Georgia, on May8, 1886. Coca-Cola Company is the world’s leading manufacturer,

marketer and distributor of non-alcoholic beverage concentrates and syrups, used to

produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling

and canning operators, distributors, fountain retailers and fountain wholesalers. The

company’s beverage product comprises of bottled and canned soft drinks as well as

concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also

produces and markets sports drink, tea and coffee. The Coca-Cola Company began

building its global network in the 1920s. Now operating in more than 200 countries and

producing nearly 400 brands, the Coca-Cola system has successfully applied a simple

formula on a global scale:” Provide a moment of refreshment for a small amount of money

a billion times a day”.

Coca-Cola Company and its network of bottlers comprise the most

sophisticated and pervasive production and distribution system in the world. More than

anything, that system is dedicated to people working long and hard to sell the products

manufactured by the company. This unique worldwide system has made the Coca-Cola

company the world’s premier soft-drink enterprise. From Boston to Beijing, From

Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought

pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has

created a special moment of pleasure for hundreds of million of people every day.

The company aims at increasing shareowner value over time. It

accomplishes this by working with its business partners to deliver satisfaction and value to

consumers through a worldwide system of superior brands and service, thus increasing

brand equity on a global Basis. They aim at managing their business well with people who

are strongly committed to the company values and culture and providing an appropriately

controlled environment, to meet business goals and objectives. The associates of the

company jointly take responsibility to ensure compliance with the framework of policies

and protect the company’s assets and resources whilst limiting business risks.

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.

Graphical Representation:-

Different Brands of Coca-Cola

Beverage industry in India; a brief insight:-

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

consumers and satisfy the existing consumers.

Fig.1:-Beverage Industry in India

The beverage industry is vast and there various ways of segmenting it, so as to cater the

right product to the right person. The diff. ways of segmenting it are as follows:-

• Alcoholic, Nonalcoholic and sports beverages.

• Natural and synthetic beverages.

BEVERAGES

ALCOHOLIC NON-ALCOHOLIC

NON- CORBONATED CORBONATED

COLA NON-COLA NON-COLA

• In home consumption and out of home on premises consumption.

• Age wise segmentation i.e. beverages for kids and for adults, for senior citizens.

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

and low level of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be

observed that consumer perceive beverages in two diff. 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.

Four strong strategic elements to increase the consumption of the products of the

beverage industry in India are:-

• The quality and the consistency of the beverages needs to be enhanced so

that consumers are satisfied and they enjoy consuming beverages.

• The credibility and trust needs to be built so that there is a very strong and

safe feeling that the consumers have while consuming the beverages.

• Consumer education is a must to bring out benefits of beverage consumption

whether in terms of health, taste, relaxation, refreshment.

• Communication should be relevant and trendy so that consumers are able to

find an appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider

spread of distribution. It is important to look at the entire beverage market, as a big

opportunity, for brand and sells growth in turn to add up to the overall growth of the food

and beverage industry in the economy.

Introduction-NDPL

Established in 1992 Narmada drinks Pvt. Ltd Initially started

production for Parle Soft Drinks in plant located at Sirgitti industrial area, Bilaspur,

Chhattisgarh. With Expansion and Growth been the motive it become the authorized

Bottler for Coca-cola India in the year 1995.Thus it gets the identity of a worldwide

brand, Coke. NDPL is basically a Franchisee owned Bottling Operation unit (FOBO) of

Coca-Cola India. Its area for serving is limited to Chhattisgarh only.

Since it is a bottling unit it is responsible for the market execution only.

It is not having the authority to take marketing decisions. NDPL only executes marketing

strategies planned by coca-cola India for its operational area. Though it has limited

freedom for promotional activities for which it has to get approval from the Big Boss

Coca-Cola India. NDPL works on target basis it gets target by CCI based on it previous

performance in terms of cases to be sold and on that it received material for manufacturing

the CCI beverages. During the time NDPL has Expertise in processing all carbonated soft

drinks CCI in all packages along with famous mineral water brand Kinley water though it

still lacked in manufacturing juices. The availability of juices is provided by other FOBO’s

or Company owned bottling operation units (COBO) of Coca-cola India.

NDPL is one of participants of THE SUPERIA GROUP which is formed

by three Bottling units situated at Nagpur, Jabalpur and Bilaspur. All of them are

authorized bottler for CCI and because of their geographical situation Superia group is

now able to serve a good amount of area in three states correspondingly Maharastra,

Madhya Pradesh, and Chhattisgarh. For production NDPL has to purchase concentrate of

the desired brand from coca-cola India for the specified number of cases of that particular

brand. NDPL being the FOBO has the authority for appointing Authorized distributors for

distribution of the CCI products processed at NDPL as well as other to provide complete

range of the products offered by CCI. NDPL is now following Six Sigma concept. The

entire production from the concentrate to raw material and packaging the material is

completely guided, controlled and supervised by the quality control management system of

Coca-Cola India.

NDPL has a good and excellent team for Production, Sales and Execution.

Since Coca-cola India has been using the very Famous Right Execution Daily (RED) as a

Tool so as authorized bottler it is necessary for NDPL to work skillfully on execution. It

has basically two types of working departments apart from other common needed

department important from the point of view of CCI and NDPL the Sales department and

Execution department. The sales team looks into the basic area of selling all brands inn the

maximum numbers and so to meet the NDPL target given by CCI. On the other hand the

Execution team follows the RED guidelines.

Production Capability:-

NDPL is presently producing 4 million cases (RGB + PET)

annually. NDPL production capability can be viewed in the following table-

Type Numbers in Bottles per Minute (BPM)

RGB (Recyclable Glass Bottle) 532

PET 60

KMW ( Kinley Mineral Water) 60

Thus NDPL enjoys producing all Carbonated Soft Drinks (CSD) brands and mineral water

offered by CCI which are Coke, Thums-up, Limca, Fanta, Sprite, Kinley water and Kinley

soda in different packages viz. RGB in 200ml-300ml, PET in 600ml, 1.25lit, and 2lit and

for Kinley water its PET in 1lit and 500ml and Kinley soda in 300ml RGB, 600ml PET.

Market Execution

“Execution of market means placement of company products at the sales counter with

appropriate activation elements.”

In the above definition the term placement and marketing elements are very

important. Placement in market execution is entirely different from marketing. In

marketing placing a product holds a much broad meaning while in market execution it

refers to putting the products to those sales counters where the probability of its market

acceptability is very high. Right placement of product ensures its availability to the target

customers in one hand while on other it provides the company fair expected sales.

Marketing elements now a days are signifying their place day by day, by

getting popular among the retailers and distributors marketing elements means those

marketing material, that helps the retailers to display the product and look wise attract the

busy and hurried customer to pick out few seconds to look at them and thus getting noticed

for example Tabletop, Flanges, Posters, Bottle stands etc.

Providing marketing elements helps the products in one or more

ways. At the time of execution one has to looks both prospective customers as well as

retailers. When you put a product at any sells counter the retailer at the store level want the

product to be advertise so customer visiting the outlet will notice and buy. Thus it helps to

motivate the retailer to push the product towards customers and attract the local customer

to try the product i.e. product getting sold.

Coca Cola use RED (Right Execution Daily) for market execution all

over India. NDPL also follow RED guideline for market execution. Coca cola has hired

world renowned marketing research firm A.C Nielson One of the best survey company for

the inspection of market execution i.e. RED survey. It holds great importance in the market

execution of coca cola India since it is a tool that CCI uses to check the working of

FOBO.

What Is RED?“RED (Right Execution Daily) is defined as a tool to measure the performance of the

distributor in the outlet by setting up some standard or parameter of execution.”

RED is the survey method that company started in 2007. It adds value to customers and

consumers through “Excellence in Execution” at the point of sale. A monthly report on

RED is send to Hindustan Coca- Cola Beverages Private Limited.

What does RED Do?

Firstly, check the visi-cooler management.

Secondly, check the availability of the product in the outlet.

Lastly, check the activation in the outlet.

These all the check Market Developer in daily routine. He check the 25 outlet in a day and

make the report out of 100 score.

Score tracking is following:-

Visi-cooler = 30

Availability = 50

Activation = 20

Segmentation model of RED outlets:-

Sales :-

The development of sales holds great importance in every company no matter

offering products or services. It is the department that runs the whole company since it is

responsible for revenue realization or the food for the company.

NDPL has a excellent sales team. Their excellency is proved by the award it

received by Coca-Cola India as the No.1 sells team in India. Its working and scope can be

considered unique as it has captured more than 86% of C.G. state market. Its work can be

seen in the market as well.

As we have seen that sales is a very important of any

organization in same case here we are discussing about the NDPL sales is done by two

basic process

Direct sales

Indirect sales

Direct sales :- In direct sales company sale their products directly to the retailers now a

days this concept not widely used.

Indirect sales :- It’s a very traditional type of sale which is mostly used by the FMCG

companies in this type of sales a proper distribution channel works. In this type of sales

product is primarily transported to the local area distributors than they distribute the

products to the retailers via route selling. Here distribution channel works according to the

following channelSENIOR SALES EXECUTIVE

JUNIOR SALES OFFICER

MARKET DEVELOPER

Horizontal Expansion & HMD

CCI has planned expansion plans to capture the maximum market share. To attain this goal

it is necessary to cover maximum geographical area and to sell full range of products i.e. to

increase sales volumes. These are termed consecutively as horizontal and vertical

expansion.

Horizontal expansion means covering maximum area of reach by opening new

outlets i.e. sells counters that sell coke products. By increasing no. of outlets that sells coke

the ideology being every outlet can be coke outlet.

Vertical Expansion:-

• Vertical expansion means selling full range of products to exciting outlets thus

in the same route and in the same number of outlet more and more no. of cokes thus

increasing overall sales volumes.

• It is also useful in increasing the revenue realization per outlet.

• Justifying the vehicle viability of the distribution vehicle.

• Improvement of profit margin of distributor.

HMD( Hunter Market Developer) :-

It is a resource which generally works to grab the maximum market opportunity

for company. It means hunters work is to open new outlets.

WORK OF HMD :-

Main work of HMD is to open monopoly new outlets for company. While hunter

MD is in the market they have to remember the following condition at the time of choosing

the outlets to be activated, these are:-

Shops have at least one electronic equipment like refrigerator or deep freezer.

Shopkeeper is selling other products like Pepsi or any products accept coke or its

brands.

A shop should be into the prime location or at the corner of the road or it should be

at turning.

Shop is not been listed into the A.C. NEILSON list of active outlet.

Shop is selling other FMCG products like chips, bournvita, horlicks or the products

which cost more than 20 rupees.

IDEOLOGIES USED BY THE HMD’S :-

HMD has to open new outlets .There are various ways by which an outlet is

converted into the coke selling outlet:-

• If shopkeeper want to sell RGB than it is a new outlet.

• For medical shops PETS sell is easier than RGB sell so they could also be converted

as a new outlet.

• For the retailers who don’t have any kind of refrigerators to chill out the cold drinks.

HMD have to suggest them to purchase OYA (own your assets). These are the way

by which HMD can help the retailer to sell the coke and its products.

BENIFTS FOR THE COMPANY:-

• Expansion horizontally

• Market penetration

• Competitive Advantage

• Availability of Product

• Promotion campaigning

• Boost the Demand

Findings:-

• The working methodology of sales & execution team is outstanding.

• Distribution channel is effective at present but in long run it needs to be upgraded.

• Availability of juices is a critical issue it should be make sure that proper supply and

proper distribution will go on in the market to avoid competition.

• The major competitor PEPSI is getting the market aggressively through its credit and

high margin issues.

• Retailer in some area revealed that they are not getting schemes i.e. distributors are

not providing schemes properly, basically in rural areas.

• Purity in the visicoolers at RED outlets in some areas is not getting maintained by

retailers.

• Some retailers having personal problems with distributors because of that the brand

image of company is getting affected.

Suggestion :-

• Making use of ERP compulsorily by the distributor can help in rather faster and

less laborious. It will also reduce the cases of false claims.

• Promotional campaigns at local level and in city events will boost up demand as

well as help in beating the competition through the publicity.

• Use some proper methodology to provide the information about the schemes

directly to the retailers.

• Take some strict actions against the retailers who are not maintaining the purity

in visicoolers especially in red outlets.

• Company has to try to sort out the personal misunderstandings between

distributors and retailers.

• Company should make some strategy to compete with local cold

Drink brands.

• Company should need Promotion program which was held for Limca and

MMPO because "Jo Dikhta Hai Woh Bikta Hai".

Conclusion:-

Marketing execution and sales process at NDPL is outstanding though it still needs to be

upgraded for the long run. Overall market strategy and distribution system defined by CCI

is skillfully get implemented here. It should be notice that in limited resources NDPL is

doing a pretty good job in the field of marketing execution without its skillful employees it

would not be possible. There is a lot of opportunities in the market is present and it can be

explored using the HUNTER MARKET DEVELOPER.

We can suggest the company should work out early on their complaints

regarding to visi cooler, Availability of visi cooler in the outlets should be increase so that

sale could increase, Company should give proper scheme to the outlets and in the last we

would like to say that Pepsi is far away from the Coke in the competition.