HINDUSTAN COCA-COLA

BEVERAGES PRIVATE

LIMITED

AN RESEARCH PROJECT REPORT

ON

CONSUMER PERCEPTION TOWARDS

MINUTE MAID PULPY ORANGE

IN FULFILMENT OF THE MASTERS PROGRAM IN BUSINESS

ADMINISTRATION,

BY

UTTAR PRADESH TECHNICAL UNIVERSITY, LUCKNOW

ACADEMIC YEAR-2008-09

SUBMITTED TO: SUBMITTED BY:

Mr. S.K. MISHRA SAMPADA SAHI

(H.O.D) ROLL NO: 0825070416

MBA 4TH SEM

BBS INSTITUTE OF MANAGEMENT

1

GREATER NOIDA

ACKNOWLEGEMENT

2

ACKNOWLEDGEMENT

I would like to thanks Mr. U Narendra Kini , General Manager, Coca-

Cola India, without whom my summer training with, Hindustan Coca-Cola

Beverages Private Limited (HCCBPL) would not have been possible. I am

grateful to him for having taken time off his busy schedule and spoken to

the concerned person to get me this internship. I express my gratitude to

the Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for having

given me an opportunity to work with them and make the best out of my

internship. My heartfelt gratitude also goes out to the staff and employees

at HCCBPL for having co-operated with me and guided me throughout my

internship period. I thank my college, BBS institute of management studies

for having given me this opportunity to put to practice, the theoretical

knowledge that I imparted from the program. I take this opportunity to

thank my parents and friends who have been with me and offered emotional

strength and moral support.

3

DECLARATION

4

DECLARATION

I, SAMPADA SHAI, hereby declare that the Project Report entitled “PERCEPTION OF CONSUMERS TOWARDS MINTUE MAID PULPY

ORANGE” in “HINUSTAN COCA COLA BEVERAGES PRIVATE LIMITED”

is an original work done by me & submitted to Department of management

studies under the guidance of Mrs. Jyotsana Shiva, Faculty, B.B.S. Institute of

Management Studies, Greater Noida. . For the award Of MASTER OF BUSINESS

ADMINISTRATION. For the further déclaration that this report has been purely

and truly submitted to the respective college.

SAMPADA SHAHI

MBA 4TH Sem

Roll no-

0825070416

5

C E R T I F I C A T E

This is to certify that the project titled "Investment Banking and

Its Practices” submitted in partial fulfillment of the requirement for

the Master of Business Administration degree from BBS Institute of

Management Studies, Greater Noida is a record of bonafide research

done by Mr. Gaurav Kumar under my guidance and supervision.

Project Guide

Mrs. Jyotsana Shiva

Faculty-BBS Institute of Management Studies, Greater Noida

6

TABLE OF CONTENT

7

TABLE OF CONTENTS

ACKOWLEDGEMENT……………………………………………………………………………….2-3

DECLARATION……………………………………………………………………………………….4-5

CERTIFICATE………………………………………………………………………………………………

..6

CHAPTER 1: INTRODUCTION……………………………………………………11-13

1.1: A brief insight- The FMCG Industry in India……………………………………..14-

16

1.2: A brief insight- The Beverage Industry in

India……………………………….17-19

Figure 1: Beverage Industry in India………………………………….19-20

CHAPTER 2: THE COCA-COLA COMPANY……………………………………21

2.1:

History………………………………………………………………………………………..21-22

2.2: History of Bottling………………………………………………………………………..23-

27

2.3: Manifesto for Growth……………………………………………………………………28

2.3.1:

Values…………………………………………………………………………………………29

2.3.2:

Mission………………………………………………………………………………………..30

2.3.3: Vision for Sustainable

Growth………………………………………………………..31

8

Figure 2: Vision for Sustainable

Growth…………………………………………32

CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE

LIMITED………………………………………………………………………..…33

3.1: About the Company…………………………………………………………………….33-

35

Figure 3: Location of COBO, FOBO and Contract packers………..35

3.2: Manifesto for Growth……………………………………………………………………36

3.2.1: Values………………………………………………………………………………37

3.2.2: Vision for Sustainable Growth……………………………………………..38

3.2.3: Mission……………………………………………………………………………..39

3.2.4: Quality Policy…………………………………………………………………….40

3.3: Organization Structure of Coca-Cola India………………………………………41

Figure 4: Organization Structure of Coca-Cola India……………….41

Figure 5: Organization Structure of Coca-Cola India……………….42

3.4: Organization Structure of the Sales Department in HCCBPL……………..43

Figure 6: Organization Structure of the Sales Department…….44

3.5: Manufacturing Unit of HCCBPL………………………………………………………45

Figure 7: Chain followed from Manufacture to Distribution…….45

3.6: Manufacturing process at HCCBPL………………………………………………..46

Figure 8: Manufacturing process…………………………………………46

3.7: Business Plan model at HCCBPL…………………………………………………….47

Figure 9: Business Plan model at HCCBPL……………………………47

3.8: Distribution Network…………………………………………………………………….48

3.8.1: Distribution Routes…………………………………………………………….49

3.8.2: Distribution System……………………………………………………………50

3.8.3: Departments involved in the Distribution process………………….51

9

3.9: SWOT Analysis of HCCBPL……………………………………………………………52

3.9.1: Strengths………………………………………………………………………….53

3.9.2: Weaknesses………………………………………………………………………54

3.9.3: Opportunities…………………………………………………………………….55

3.9.4: Threats……………………………………………………………………………..56

3.10: Competitors to HCCBPL……………………………………………………………….58

CHAPTER 4: PRODUCTS…………………………………………………………..59-62

4.1: Packaging details…………………………………………………………………………63

CHAPTER 5: PROJECT: PERCEPTION OF CONSUMERS TOWARDS MINUTE

MAID PULPY ORANGE……………………………………………………………………..64

5.1: Objective of the Study………………………………………………………………….65

5.2: Review of literature………………………………………………………………………66

5.3: Executive Summary………………….………………………………………………….68

5.4: Research Design………………………………………………………………………….71

5.5: Methodology……………………………………………………………………………….72

5.6: Finding and Analysis……………………………………………………………………73-

85

5.6.1: Graph 1: Total number of Consumers based on Age Group……74

5.6.2: Graph 2: Total number of Consumers based on Gender…………75

5.6.3: Graph 3: General reaction of Consumers about MMPO…………..76-77

5.6.4: Graph 4: Reaction analyzed on basis of Age Group……………….78-80

5.6.5: Graph 5: Reaction analyzed on basis of gender…………………….81-82

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CHAPTER 6: CONCLUSION……………………………………………………...86-88

CHAPTER 7: RECOMMENDATION AND LIMITATION……………………..89-91

APPENDIX…………………………………………………………………………..92-97

BIBLIOGRAPHY……………………………………………………………………98

INTRODUCTION

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CHAPTER 1: INTRODUCTION

_______________________________________________

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 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 products 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 drinks, 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.”

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The 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 millions 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 services, 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 this Company jointly take responsibility to ensure compliance

with the framework of policies and protect the Company’s assets and

resources whilst limiting business risks.

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1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

Goods (CPG) are products that have a quick turnover and relatively low cost.

Consumers generally put less thought into the purchase of FMCG than they

do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s.

Many players had been facing severe problems on account of increased

competition from small and regional players and from slow growth across its

various product categories. As a result, most of the companies were forced

to revamp their product, marketing, distribution and customer service

strategies to strengthen their position in the market.

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By the turn of the 20th century, the face of the Indian FMCG industry had

changed significantly. With the liberalization and growth of the Indian

economy, the Indian customer witnessed an increasing exposure to new

domestic and foreign products through different media, such as television

and the Internet. Apart from this, social changes such as increase in the

number of nuclear families and the growing number of working couples

resulting in increased spending power also contributed to the increase in the

Indian consumers' personal consumption. The realization of the customer's

growing awareness and the need to meet changing requirements and

preferences on account of changing lifestyles required the FMCG producing

companies to formulate customer-centric strategies. These changes had a

positive impact, leading to the rapid growth in the FMCG industry. Increased

availability of retail space, rapid urbanization, and qualified manpower also

boosted the growth of the organized retailing sector.

HLL led the way in revolutionizing the product, market, distribution and

service formats of the FMCG industry by focusing on rural markets, direct

distribution, creating new product, distribution and service formats. The

FMCG sector also received a boost by

Government led initiatives in the 2003 budget such as the setting up of

excise free zones in various parts of the country that witnessed firms

moving away from outsourcing to manufacturing by investing in the zones.

Though the absolute profit made on FMCG products is relatively small, they

generally sell in large numbers and so the cumulative profit on such

products can be large. Unlike some industries, such as automobiles,

computers, and airlines, FMCG does not suffer from mass layoffs every time

the economy starts to dip. A person may put off buying a car but he will not

put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner

irrespective of global market dip, because they generally satisfy rather

fundamental, as opposed to luxurious needs. The FMCG sector, which is

15

growing at the rate of 9% is the fourth largest sector in the Indian Economy

and is worth Rs.93000 crores. The main contributor, making up 32% of the

sector, is the South Indian region. It is predicted that in the year 2010, the

FMCG sector will be worth Rs.143000 crores. The sector being one of the

biggest sectors of the Indian Economy provides up to 4 million jobs. (Source:

HCCBPL, Monthly Circular, March)

The FMCG sector consists of the following categories:

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and

Toiletries, Deodorants and Perfumes, Paper products (Tissues,

Diapers, Sanitary products) and Shoe care; the major players being;

Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and

Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic

detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners),

Air fresheners, Insecticides and Mosquito repellants, Metal polish and

Furniture polish; the major players being; Hindustan Lever Limited,

Nirma and Ricket Colman.

Branded and Packaged foods and beverages- Health beverages,

Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads,

Cakes), Snack foods,

Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed

vegetables, Processed meat, Branded flour, Bottled water, Branded

rice, Branded sugar,

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Juices; the major players being; Hindustan Lever Limited, Nestle,

Coca-Cola, Cadbury, Pepsi and Dabur

Spirits and Tobacco; the major players being; ITC, Godfrey, Philips

and UB

1.2: 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.

17

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

FIGURE 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 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

18

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

consumption 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.

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 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,

stimulation, refreshment, well-being or prestige relevant to the

category.

19

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 sales growth in turn to add up to

the overall growth of the food and beverage industry in the economy.

HISTORY

20

OF

COCA COLA

CHAPTER 2: THE COCA-COLA

COMPANY_______________________________________________

2.1: HISTORY

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

21

three-legged brass kettle in his backyard. He first “distributed” the product

by carrying it in a jug down the street to Jacob’s 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. Pemberton’s 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 to inform 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 Pemberton’s former partner Frank Robinson and two other

associates, Mr. Candler formed a Georgia corporation named the Coca-Cola

22

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 Company’s 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.

2.2: HISTORY OF BOTTLING

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.

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YEAR WISE HISTORY OF BOTTLING:

Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain

beverage called Coca-Cola impressed the store's owner, Joseph A.

Biedenharn. He began bottling Coca-Cola to sell, using a common glass

bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler,

who owned the Company. Candler thanked him but took no action. One of

his nephews already had urged that Coca-Cola be bottled, but Candler

focused on fountain sales.

Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could

build a business around bottling Coca-Cola. In a meeting with Candler,

Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to

bottle Coca-Cola across most of the United States for a sum of one dollar. A

third Chattanooga lawyer, John T. Lupton, soon joined their venture.

Years 1900-1909: Rapid growth

The three pioneer bottlers divided the country into territories and sold

bottling rights to local entrepreneurs. Their efforts were boosted by major

progress in bottling technology, which improved efficiency and product

quality. By 1909, nearly 400 Coca-

Cola bottling plants were operating, most of them family-owned businesses.

Some were open only during hot-weather months when demand was high.

24

Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused

with imitators. A group representing the Company and bottlers asked glass

manufacturers to offer ideas for a distinctive bottle. A design from the Root

Glass Company of Terre Haute, Indiana won enthusiastic approval. The

Contour Bottle became one of the few packages ever granted trademark

status by the U.S. Patent Office. Today, it is one of the most recognized

icons in the world.

In the 1920s: Bottling overtakes fountain sales

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in

the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a

huge hit starting in 1923. A few years later, open-top metal coolers became

the forerunners of automated vending machines. By the end of the 1920s,

bottle sales of Coca-Cola exceeded fountain sales.

In the 1920s and 1930s: International expansion

Led by Robert W. Woodruff, chief executive officer and chairman of the

Board, the Company began a major push to establish bottling operations

outside the U.S. Plants

were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and

South Africa. By the time World War II began, Coca-Cola was being bottled

in 44 countries.

25

In the 1940s: Post-war growth During the war, 64 bottling plants were set up

around the world to supply the troops. This followed an urgent request for

bottling equipment and materials from General Eisenhower's base in North

Africa. Many of these war-time plants were later converted to civilian use,

permanently enlarging the bottling system and accelerating the growth of

the Company's worldwide business.

In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and

type-the traditional 6.5 ounce Contour Bottle, or larger servings including

10, 12 and 26 ounce versions. Cans were also introduced, becoming

generally available in 1960.

In the 1960s: Introduction of new brands

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb

and Mello Yello were added in the 1970s. The 1980s brought diet Coke and

Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today

scores of other brands are offered to meet consumer preferences in local

markets around the world.

In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of The

Coca-Cola Company merged and evolved into international mega chains.

26

Such customers required a new approach. In response, many small and

medium-size bottlers consolidated to better serve giant international

customers. The Company encouraged and invested in a number of bottler

consolidations to assure that its largest bottling partners would have

capacity to lead the system in working with global retailers.

In the 1990s: New and growing markets

Political and economic changes opened vast markets that were closed or

underdeveloped for decades. After the fall of the Berlin Wall, the Company

invested

heavily to build plants in eastern Europe. As the century closed, more than

$1.5 billion was committed to new bottling facilities in Africa.

21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local

27

communities. This heritage serves the Company well today as consumers

seek brands that honor local identity and the distinctiveness of local

markets. As was true a century ago, strong locally based relationships

between Coca-Cola bottlers, customers and communities are the foundation

on which the entire business grows.

28

2.3: MANIFESTO FOR

GROWTH

2.3.1: VALUES

29

Coca-Cola is guided by shared values that both the employees as individuals

and the Company will live by; the values being:

LEADERSHIP: The courage to shape a better future

PASSION: Committed in heart and mind

INTEGRITY: Be real

ACCOUNTABILITY: If it is to be, it’s up to me

COLLABORATION: Leverage collective genius

INNOVATION: Seek, imagine, create, delight

QUALITY: What we do, we do well

2.3.2: MISSION

To Refresh the World... In body, mind, and spirit

30

To Inspire Moments of Optimism... Through our brands and our

actions

To Create Value and Make a Difference... Everywhere we engage.

2.3.3: VISION

31

PROFIT: Maximizing return to shareowners 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.

32

FIGURE 2: VISION FOR SUSTAINABLE GROWTH

33

CHAPTER 3: HINDUSTAN COCA-COLA

BEVERAGES

PRIVATE LIMITED (HCCBPL)

_______________________________________________

3.1: ABOUT THE COMPANY

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.

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.

34

Coca-Cola is made up of 7000 local employees, 500 managers, over 60

manufacturing 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-tonne trucks to open-bay three wheelers that can navigate through

narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

“Think local, act local”, is the mantra that Coca-Cola follows, with punch

lines like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for

Rural India. This resulted in a 37% growth rate in rural India visa-vie 24%

growth seen in urban India. Between 2001 and 2003, the per capita

consumption of cold drinks doubled due to the launch of the new packaging

of 200 ml returnable glass bottles which were made available at a price of

Rs.5 per bottle. This new market accounted for over 80% of India’s new

Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that

everyone who touches their business should benefit, thereby inducing them

to uphold these values, enabling the Company to achieve success,

recognition and loyalty worldwide.

35

FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

36

3.2: MANIFESTO FOR

GROWTH

37

3.2.1: VALUES

The values that the employees in the Company are expected to keep up to

and work by regularly are as follows:

LEADERSHIP: To take an initiative and lead, motivate and drive the

team with energy and zeal, to deliver outstanding results.

INNOVATION: To continuously strive for progress and reach the next

level of excellence in everything we do.

PASSION: To be deeply committed and display drive and energy in

the quest to deliver outstanding performance.

TEAMWORK: To unite for greater strength and work collectively as a

group towards the achievement of common goals.

OWNERSHIP: To think and act like owners at all levels; to have

decisions taken at the lowest appropriate level.

ACCOUNTABILITY: To be individually and transparently accountable

to our colleagues for delivering agreed targets and goals.

38

3.2.2: VISION

To provide exceptional strategic leadership in the Coca-Cola India System-

resulting in

consumer and customer preference and loyalty, through Coca-Cola’s

commitment to

them, and in a highly profitable Coca-Cola Corporate branded beverages

system.

39

3.2.3: MISSION

To create consumer products, services and communications, customer

service and bottling system strategies, processes and tools in order to

create competitive advantage and deliver superior value to;

Consumers as a superior beverage experience

Consumers as an opportunity to grow profits through the use of

finished drinks

Bottlers as an opportunity to grow profits in volumes

Bottlers as a trademark enhancement and positive economic value

added

Suppliers as an opportunity to make reasonable profits when creating

real value-added in an environment of system-wide team work,

flexible business system and continuous improvement

Indian society in the form of a contribution to economic and social

development.

40

3.2.4: QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds

and actions by continually improving our processes…Every time.”

41

Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central)

3.3: ORGANIZATION

STRUCTURE OF COCA-COLA

IN INDIA

42

Region VicePresident

AGM/AOD Unit 1

AGM/AOD Unit 2

AGM/AODUnit 3

AGM/AODUnit4

Region Finance

Region Human Resource

Region Customer Service

Region External Affairs

Region Cold Drink

Region Legal

Region BSG

Region Director/Manager Market Execution

Region Capability Management Region Channel

FIURE 4: ORGANIZATION STRUCTURE IN COCA-COLA, INI

FIGURE 5: ORGANIZATION STRUCTURE IN COCA-COLA, INDIA

3.4: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN

43

AGM/AOD

Plant Manager

Route to Market

Human ResourceManager

Finance Manager

General Sales

Manager

Area SalesManager

ChannelManager

Area CapabilityManager

Sales Executive

Sales Trainers

Market Developer

DistributorsAnd

Salesmen

Marketing

Key Accounts

HCCBPL:

3.5: MANUFACTURING UNIT OF HCCBPL

44

Manufacturing Plant, Bidadi

Sales and Distribution Operations

Distributors

Outlets

Outlets

The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest

plant and one of the bottling operations owned by the company. The Plant

has one PET line which has the capacity of yielding 209 bottles, per minute,

two RGB (Returnable glass bottles) lines which yields 600 bottles per minute

each and one Juice line which yield 155 bottles per minute. It caters to the

whole of South Karnataka through a network of more than 80 distributors.

There are three depots in Bangalore; North Depot, East Depot and Mega

Depot.

FIGURE 7: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

3.6: MANUFACTURING PROCESS AT HCCBPL

45

FIGURE 8: MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves the following

steps:

Water is received from the River Cauvery and it passes through the

water treatment plant, further passing through the sand filter and the

activated carbon filter, so as to attain pure cleansed water.

In the syrup room, the concentrate received from another bottling

plant situated at Pune, is blended with the sugar syrup

46

Once both the water and the final syrup are ready, they are both

mixed together and sent to the carbonator section where Carbon

Dioxide is added to the mixture to form the final product.

On the other hand, simultaneously, the returnable glass bottles are

depalletized, inspected and washed for the purpose of filling in the

final product in it. This step does not take place in the PET bottle line

as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB)/

capped (in case of PET bottles), labeled and cased in order to be sent

into the warehouse for distribution.

47

Coca-Cola India division, Gurgaon

Regional BottlersCOBO/FOBO

Customers

Manufactures Concentrate, Beverage base and Syrup

Manufactures finished Bottles/Cans/Fountain Syrup

Consumers

3.7: BUSINESS PLAN MODEL

AT HCCBPL

FIGURE 9: BUSINESS PLAN MODEL

48

3.8: DISTRIBUTION NETWORK

HCCBPL has a wide and well managed network of salesmen appointed for

taking up the responsibility of distribution of products to diverse parts of the

cities. The distribution channels are constructed in such a way that the

demand of customers is fulfilled at the right place and the right time when it

is needed by them.

A typical distribution chain at HCCBPL 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 well

organized distribution system contributes to the efficiency of the salesmen.

It also leads to low costs, higher sales and higher efficiency thereby leading

to higher profits to the firm.

49

3.8.1: DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as

follows:

Key Accounts: The customers in this category collectively

contribute a large chunk of the total sales of the Company. It

basically consists of organizations that buy large quantities of a

product in one single transaction. The Company provides goods to

these customers on credit, payments being made by them after a

certain period of time i.e. either a month of half a month.

Examples: Clubs, fine dine restaurants, hotels, Corporate houses

etc.

Future Consumption: This route consists of outlets of Coca-Cola

products, wherein a considerable amount of stock is kept in order to

use for future consumption. The stock does not exhaust within a day

or two, instead as and when required stocks are stacked up by them

so as to avoid shortage or non-availability of the product.

Examples: Departmental stores, Super markets etc.

Immediate Consumption: The outlets in this route are those

which require stocks on a daily basis. The stocks of products in

these outlets are not stored for future use instead, are exhausted on

the same day and might run a little into the next day i.e. the

products are consumed at a fast pace.

Examples: Small sized bars and restaurants, educational

institutions etc.

General: Under this route, all the outlets that come in a particular

area or an area along with its neighboring areas are catered to. The

50

consumption period is not taken into consideration in this particular

route.

3.8.2: DISTRIBUTION SYSTEM

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.

51

3.8.3: DEPARTMENTS INVOLVED

IN THE DISTRIBUTION

PROCESS

The Distribution process mainly consists of three departments:

Distribution Department: It appoints distributors and establishes a

distribution network, processes approved sale orders and prepares

invoices, arranges logistics and ship products, co-ordinates with

distributors for collections and monitors distribution stocks and their

set-up.

Finance Department: It checks credit limits and approves sales

orders in compliance with the credit policy followed by the firm,

records collections from distributors, periodically reconciles

outstanding balances from distributors, obtains balance confirmation

from distributors and follows up outstanding balances.

Shipping or Warehousing Department: It dispatches goods as

per approved by order, ensures that stocks are dispatched on a FIFO

basis, ensures physical control over load out area and updates

warehouse stock records in a timely manner.

52

3.9: SWOT ANALYSIS

OF HCCBPL

53

3.9.1: STRENGTHS

DISTRIBUTION NETWORK: The Company has a strong and reliable

distribution network. The network is formed on the basis of the time

of consumption and the amount of sales yielded by a particular

customer in one transaction. It has a distribution network consisting

of a number of efficient salesmen, 700,000 retail outlets and 8000

distributors. The distribution fleet includes different modes of

distribution, from 10-tonne trucks to open-bay three wheelers that

can navigate through narrow alleyways of Indian cities and

trademarked tricycles and pushcarts.

STRONG BRANDS: The products produced and marketed by the

Company have a strong brand image. People all around the world

recognize the brands marketed by the Company. Strong brand names

like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand

name of the Coca-Cola Company as a whole. The red and white Coca-

Cola is one of the very few things that are recognized by people all

over the world. Coca-Cola has been named the world's top brand for a

fourth consecutive year in a survey by consultancy Interbrand. It was

estimated that the Coca-Cola brand was worth $70.45billion.

(http://news.bbc.co.uk/1/hi/business/4706275.stm)

54

LOW COST OF OPERATIONS: The production, marketing and

distribution systems are very efficient due to forward planning and

maintenance of consistency of operations which minimizes wastage

of both time and resources leads to lowering of costs.

3.9.2: WEAKNESSES

LOW EXPORT LEVELS: The brands produced by the company are

brands produced world wide thereby making the export levels very

low. In India, there exists a major controversy concerning pesticides

and other harmful chemicals in bottled products including Coca-Cola.

In 2003, the Centre for Science and Environment (CSE), a non-

governmental organization in New Delhi, said aerated waters

produced by soft drinks manufacturers in India, including

multinational giants PepsiCo and Coca-Cola, contained toxins

including lindane, DDT, malathion and chlorpyrifos- pesticides that

can contribute to cancer and a breakdown of the immune system.

Therefore, people abroad, are apprehensive about Coca-Cola

products from India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO

INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company’s

operations are carried out on a small scale and due to Government

restrictions and ‘red-tapism’, the Company finds it very difficult to

invest in technological advancements and achieve economies of

scale.

55

3.9.3: OPPORTUNITIES

LARGE DOMESTIC MARKETS: The domestic market for the

products of the Company is very high as compared to any other soft

drink manufacturer. Coca-Cola India claims a 58 per cent share of the

soft drinks market; this includes a 42 per cent share of the cola

market. Other products account for 16 per cent market share, chiefly

led by Limca. The company appointed 50,000 new outlets in the first

two months of this year, as part of its plans to cover one lakh outlets

for the coming summer season and this also covered 3,500 new

villages. In Bangalore, Coca-Cola amounts for 74% of the beverage

market.

EXPORT POTENTIAL: The Company can come up with new products

which are not manufactured abroad, like Maaza etc and export them

to foreign nations. It can come up with strategies to eliminate

apprehension from the minds of the people towards the Coke

products produced in India so that there will be a considerable

amount of exports and it is yet another opportunity to broaden future

56

prospects and cater to the global markets rather than just domestic

market.

HIGHER INCOME AMONG PEOPLE: Development of India as a

whole has lead to an increase in the per capita income thereby

causing an increase in disposable income. Unlike olden times, people

now have the power of buying goods of their choice without having to

worry much about the flow of their income. The beverage industry

can take advantage of such a situation and enhance their sales.

3.9.4: THREATS

IMPORTS: As India is developing at a fast pace, the per capita

income has increased over the years and a majority of the people are

educated, the export levels have gone high. People understand trade

to a large extent and the demand for foreign goods has increased

over the years. If consumers shift onto imported beverages rather

than have beverages manufactured within the country, it could pose

a threat to the Indian beverage industry as a whole in turn affecting

the sales of the Company.

TAX AND REGULATORY SECTOR: The tax system in India is

accompanied by a variety of regulations at each stage on the

consequence from production to consumption. When a license is

issued, the production capacity is mentioned on the license and every

57

time the production capacity needs to be increased, the license poses

a problem. Renewing or updating a license every now and then is

difficult. Therefore, this can limit the growth of the Company and pose

problems.

SLOWDOWN IN RURAL DEMAND: The rural market may be alluring

but it is not without its problems: Low per capita disposable incomes

that is half the urban disposable income; large number of daily wage

earners, acute dependence on the vagaries of the monsoon; seasonal

consumption linked to harvests and festivals and special occasions;

poor roads; power problems; and inaccessibility to conventional

advertising media. All these problems might lead to a slowdown in

the demand for the company’s products.

3.10: COMPETITORS TO

HCCBPL

The competitors to the products of the company mainly lie in the non-

alcoholic beverage industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-

Cola Company never ends for the World's # 2, carbonated soft-drink

maker. The company's soft drinks include Pepsi, Mountain Dew, and

Slice. Cola is not the company's only beverage; PepsiCo sells

58

Tropicana orange juice brands, Gatorade sports drink, and Aquafina

water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea.

PepsiCo and Coca-Cola hold together, a market share of 95% out of

which 60.8% is held by Coca-Cola and the rest belongs to Pepsi.

Nestlé: Nestle does not give that tough a competition to Coca-Cola as

it mainly deals with milk products, Baby foods and Chocolates. But

the iced tea that is Nestea which has been introduced into the market

by Nestle provides a considerable amount of competition to the

products of the Company. Iced tea is one of the closest substitutes to

the Colas as it is a thirst quencher and it is healthier when compared

to fizz drinks. The flavored milk products also have become

substitutes to the products of the company due to growing health

awareness among people.

Dabur: Dabur in India, is one of the most trusted brands as it has

been operating ever since times and people have laid all their trust in

the Company and the products of the Company. Apart from food

products, Dabur has introduced into the market Real Juice which is

packaged fresh fruit juice. These products give a strong competition

to Maaza and the latest product Minute Maid Pulpy Orange.

59

PRODUCTS

60

CHAPTER 4: PRODUCTS

_______________________________________________

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:

In the Cola Section:

61

In the Lemon section:

In the Orange section:

In the Juice section:

In the Soda Water and Bottled Mineral Water section:

62

In the Tonic Water section:

63

4.1: PACKAGING DETAILS

Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml

and 300 ml returnable glass bottles; 500+100 ml free, 1.5 litre and 2

litre PET bottles

Diet Coke: 330 ml can and 500 ml PET bottle

Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free

and 1litre+200 ml free PET bottles and the newly introduced 200 ml

Tetra Pack

Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles

Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml

free PET bottles

Schweppes Mineral Water: 750 ml PET bottles

Schweppes Tonic Water: 330 ml can

64

Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free

and 1.5 litre PET bottles.

CHAPTER 5: PROJECT

PERCEPTION OF CONSUMERS

TOWARDS

MINUTE MAID PULPY ORANGE

65

5.1: OBJECTIVE OF THE

STUDY

The main objective of this study lies in studying and understanding the

consumers’ perception and opinion about the latest product, Minute Maid

Pulpy Orange, introduced into India, by the Coca-Cola Company. Perception

can be defined as intuitive recognition of a truth, aesthetic quality and the

way a person sees or understands. In the case of Minute Maid Pulpy Orange,

66

one could define perception as the levels of awareness and acceptance

among people towards the product.

5.2: REVIEW OF LITERATURE

Minute Maid is a 62-year-old brand and entered the Coca-Cola fold in 1960.

The history of the ‘Minute Maid’ brand goes as far back as 1945 when the

Florida Foods Corporation developed an orange juice powder. The company

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

juice to form a frozen concentrates which, when reconstituted created

orange juice. The product was thereby branded ‘Minute Maid’, a name

signifying the convenience and the ease of preparation i.e. the drink could

be prepared in just about a minute. Minute Maid thus moved from a

powdered concentrate to the first ever orange juice from concentrate. Over

67

the years, through innovation and unmatched consumer experience

provided in over 60 countries, Minute Maid brand has clearly become one of

the world's largest juice and juice drink brands. Minute Maid Pulpy Orange in

India was launched in Hyderabad on the 19th Of February. The product is

aimed to further extend the leadership of Coca-Cola in India in the juice

drink category.

There are over a 100 products in the Minute Maid banner that include fruit

drinks in various flavors and fortified varieties. Coca-Cola is exploring its

options to introduce some of these in India in future after tweaking them to

suit local tastes and conditions. The product is made available in two packs;

one being a 400 ML bottle priced at Rs. 25 and the other being a 1 LT bottle

priced at Rs. 60. The exclusivity of the product lies in the presence of real

orange pulp in the drink contributing to its unique and refreshing taste.

Currently, the pulp is imported from Florida and the juice from Brazil, the

largest producers of Orange in the world. The product is bottled at the

bottling unit of Coca-Cola in Chittoor, Andhra Pradesh. In the long run, the

company would be sourcing these components locally by teaming up with

farmers.

The product is made available in groceries, large format stores, eating and

drinking outlets, convenience stores etc. Mr. John Ustas, CEO of HCCBPL,

said that Minute Maid Pulpy Orange would be retailed across 25,000 outlets

in the three Southern States of Karnataka, Andhra Pradesh and Tamil Nadu

in the months of March and April.

68

5.4 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 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. Coca-Cola was first

69

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 Jacob’s 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 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. 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 study lies in understanding

the organization and studying and understanding the consumers’ perception

and opinion about the latest product, Minute Maid Pulpy Orange, introduced

into India, by

the Coca-Cola Company. A consumer sampling involving 500 people was

required conducted in a span of 30 days across major cities in order to give

the product the

marketing push and to recognize the prospective consumers and their

opinion in order to develop and market the product in a better way in the

70

near future. The methodology used in studying and understanding the

perceived views of consumers towards the product was ‘SAMPLING’. The

findings of the activity have been drawn out in form of graphs and

suggestions have been offered there from.

5.4: RESEARCH DESIGNAs mentioned earlier in the report, Jharkhand, Orrisa and W.Bengal, were a

part of the phased launch of the product in the market. A consumer

sampling involving 500 each people was conducted in a span of 30 days

71

across major cities in order to give the product the required marketing push

and to recognize the prospective consumers and their opinion in order to

develop and market the product in a better way in the near future. The

methodology used in studying and understanding the perceived views of

consumers towards the product was ‘SAMPLING’.

Sampling, by definition, is that part of statistical practice concerned with the

selection of individual observations intended to yield some knowledge about

a population of concern, especially for the purposes of statistical inference.

Each observation measures one or more properties of an observable entity

enumerated to distinguish objects or individuals. In the case of Minute Maid

Pulpy Orange, the properties taken into concern are, the opinion of people

regarding the product, taking into consideration their age and gender.

The process of Sampling in the city of Ranchi was conducted in the chain of

Food World outlets all over the city. A modern trade outlet like Food World

was chosen because of facts like; the number of Food World outlets is high

and the number of walk ins at each outlet was comparatively high as

compared to any other stores or any other modern trade outlets. In recent

years, consumers have preferred shopping for grocery and other

necessaries at super markets due to reasons like, location of the store,

shopping at leisure and convenience, spacious stores, availability of a wide

array of products, prices offered and the quality of the products. Food World

has been

existent in the city for a very long time now and it is an outlet which

satisfies all the above conditions and keeping that in mind, it was chosen.

72

5.5: METHODOLOGY

The students appointed as summer trainees by the organization were

assigned to carry out the process of sampling. Each trainee was allotted

73

different outlets on different days and a specific number of cases containing

24 bottles of 400 ml each were given to them for the purpose. A

standardized procedure was to be followed by the trainees to carry out the

work, in order to achieve uniformity in the process, i.e. as follows:

Talk to the store Manager in the respective store and attain chiller

space in order to chill the bottles as it was necessitated that the

drinks be served chill to the consumers and chill the bottles for about

two hours.

When the consumer entered or exited the store, the trainee had to

stop the consumer and tell the consumers few facts about the

product i.e. that it was the latest product introduced by Coca-Cola,

that it was an orange drink with real orange pulp in it and that it was

to be had chilled and shaken well before use.

Then the bottles were to be shaken well, opened and given to the

consumer to taste and once they sipped the drink, the consumer

would be requested to give an oral opinion about the product.

After this, in order to make a report, the approximate age of the

consumer, gender and their opinion was to be made note of.

74

FINDING AND

ANALYSIS

5.6: FINDINGS AND ANALYSIS

5.6.1: GRAPH 1This graph depicts the total number of consumers divided on the basis of

the age group they belong to. The age of consumers included in the

75

sampling activity ranged from 5 years to 75 years. Accordingly the age

groups 5 to 15, 15 to 25, 25 to 35, 35 to 45, 45 to 55, 55 to 65 and 65 to 75

have been formulated. There is not set limit for the age of the consumers

mainly because ‘Minute Maid Pulpy Orange’ is a fruit drink and it can be

consumed by people across different age groups with no restrictions being

laid and consumers of all ages enter food world on a given day, either

individually and in the case of children, with their parents. The consumers

who were sampled with were between 5 years and 75 years of age. The

approximate age of the consumers was to be guessed and noted down.

Around 50% of consumers fall in the 25 years to 35 years and 35 years to

45 years age groups and the other 50% is distributed among the other age

groups.

GRAPH 1: TOTAL NUMBER OF CONSUMERS BASED ON AGE GROUP

5.5.2: GRAPH 2

Total No. of Consumers based on Age Group

27%

13%

8%

7% 6%

10%

29%

5 to 15 15 to 25 25 to 35 35 to 45 45 to 55 55 to 65 65 to 75

76

This graph makes a distinction between the number of males and number of

females with whom sampling was conducted. The percentage is almost the same in

both categories, but the number of females i.e. 365 is a little more than the number

of males i.e. 331, due to the fact that, most of the household shopping is done by

women rather than by men.

GRAPH 2: TOTAL NUMBER OF CONSUMERS BASED ON GENDER

No. of Consumers based on Gender

48%52%

Male Female

77

5.5.3: GRAPH 3

The following graph denotes the feedback of consumers irrespective of the age

group they belong to or their gender. This is an overall perception of the consumers

towards ‘Minute Maid Pulpy Orange’.

GRAPH 3: GENERAL REACTION OF CONSUMERS ABOUT MMPO

Opinion of people on Minute Maid Pulpy Orange

15%

11%

8%66%

Liked Average Mix Reaction Disliked

78

From the above graph, it can be seen that, more than half the people who

tasted the product liked the product, i.e. they gave positive feedback about

the product and 15% of the consumers did not like the product. Out of the

remaining 19% of consumers,

11% people came up with mixed reactions i.e. they had reasons both to like

and dislike the product and a small chunk of 8% of the total consumers

sampled with, said they did not like the drink too much, neither did they

love the drink.

79

5.5.4: GRAPH 4

The following graph denotes the perception of consumers on the basis of

the age group they belong to. This kind of a classification becomes

necessary, because consumers of different age groups have different tastes

and moreover, the ages of consumers in the sample range from 5 years all

the way to 75 years.

GRAPH 4: REACTION ANALYSED ON BASIS OF AGE GROUP

87

9

04

76

7

17

0

69

78

16

72

8 812

58

1010

22

40

5

31

24

40

12

18

30

0

10

20

30

40

50

60

70

80

90

% o

f Co

nsum

ers

5 to 15 15 to 25 25 to 35 35 to 45 45 to 55 55 to 65 65 to 75

Age Group

Feedback of Consumers about MMPO

Liked Average Mix Reaction Disliked

80

From the above graph, it is evident that, across all age groups, a major

portion of consumers liked the product. Further opinions received from

different age groups could be compared and analysed as follows:

Ranging from ages 5 to 55, it can be noticed that, in every age group,

more than 50% of the consumers have liked the product.

In the age group of 5 years to 15 years, 87% of the consumers have

liked the products. The main reason behind this is children are fond of

juices and sweet substances. They crave to have anything that is cold

and the product when sampled, was made sure was cold and the

remaining 13% is divided between average and disliked. There were

no consumers who gave mixed reactions. This could be due to the

reason that children cannot come up with good enough reasons as to

why they like or dislike a product. They just give their opinion.

In age groups 15 years to 25 years, 25 years to 35 years and 35

years to 45 years and 45 years to 55 years, the reactions were almost

the same. This age group mostly consisted of college going students,

working people and house wives. The percentage of consumers who

liked the product ranged from 60 to 70%, so it could be said that,

around 3 quarters of consumers belonging to those age groups liked

the products. The main reasons for this could be that the most

consumers belonging to these age groups are health conscious and

Orange juice is considered to be one of the most nutritious and

healthy juices. Almost 96% of the house wives who were spoken to

liked the product. House wives are home managers and they make

decisions when it comes to daily consumables and they wanted to

buy the products especially because they wanted their children and

the rest of their family to have it as it was safe and healthy.

81

Consumers belonging to age groups 55 years to 65 years and 65

years to 75 years, almost have the same perception about the

product. More than 50% of the consumers jointly fell in Disliked,

Average and Mixed reaction categories mainly because consumers

belonging to the age group of 55 to 75 years are diabetics and they

do not intake or they are not allowed to intake excessive quantities of

sugar; Minute Maid Pulpy Orange being a fruit juice and have added

sugar in it was a big no to them. Some of them were even

apprehensive about the Coca-Cola brand name attached to the

product; according to them Coca-Cola makes only carbonated soft

drinks.

82

5.5.5: GRAPH 5The following graph is a representation of the comparison and analysis of

the feedback given by the consumers based on the gender they belong to.

This kind of an analysis is important due to the fact that males and females

have different tastes, likes and dislikes especially when it comes to choice of

foods and beverages.

GRAPH 5: REACTION ANALYSED ON BASIS OF GENDER

On analysis of the above graph, it can be noted that, the gender of the

consumer has not made an impact on the reaction obtained from the

consumers. Males and females have shown the same kind of reaction

towards the product.

67 65 9 7 10 13 14 15

0

10

20

30

40

50

60

70

% o

f Consu

mers

Liked Average Mix Reaction Disliked

Opinion

Feedback on basis of Gender

Male Female

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About 70% of the both males and females liked the product. This may be

due to the fact that Orange juice is a universal favorite and people across

the world, across both genders love having orange juice. Around 20% of

both males and females gave an average rating to the products and the rest

were confused.

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5.6: ADDITIONAL

INFORMATION

The reasons given by consumers for having liked the product were:

It tastes like fresh orange juice.

It is a good thirst quencher, especially in the summer season.

It is not bitter like other readymade juice products that are available

in the market.

It has got real pulp in it and when one can feel the pulp and this

makes the drink tastier.

It is a non-carbonated drink.

It is as sweet as natural oranges that one buys in the market.

Due to the natural orange pulp, the juice is healthier.

It is a ready-to-drink fruit juice.

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The reasons given by consumers for having disliked the product were:

It is too sweet.

It is too watery i.e. the consistency is not good.

Fresh fruit juice is preferable.

Tropicana is preferred because that is not as sweet as Minute Maid

Pulpy Orange.

It is too bitter.

It is not as sweet as natural orange juice.

It was a product of the Coca-Cola Company and ever since the

controversy, consumers are a little apprehensive about the products

of that company.

Preferred water to drinking juice.

It is not exactly a drink for adults; the taste is more to suit children

rather than adults.

It tastes more like Rasna/Tang.

The above points under categories liked and disliked are contradictory to

each other. Both categories have few same points like the bitterness and

the sweetness of the juice. This contradiction arises due to the following

reasons:

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Consumers belonged to different age groups ranging from as young

as 5 years all the way to 75 years of age.

Consumers have different likes and dislikes.

Consumers have different tastes.

Level of health consciousness is different among different consumers.

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CONCLUSION

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CHAPTER 6: CONCLUSION_______________________________________________

The Sampling activity was a good first step into the area of Marketing and

Sales. It gave good amount of exposure mainly because after being trained,

trainees were given an opportunity to carry out the process ourselves. It

helped in developing a considerable amount of convincing skills, because, it

took a lot of it to convince the store managers to give us cooler space to

cool the product for 2 hours and even more to convince the customers into

tasting the product and to get reviews from them. A good understanding of

the market was accomplished as around 700 people were spoken to and

that group consisted of a variety of customers. This even helped in the

polishing of communication skills, a must-have to survive and make it big in

the present world. It even gave a good understanding of behavior of

customers when placed in different situations. It was a good opportunity to

work on the skill of patience, as a large number of customers were to be

dealt with. It helped in developing the kind of relations one needs to uphold

in the corporate world and it helped in building up the right attitude.

As all the points in the above mentioned paragraph, are the must-have skills

for anyone in the field of Marketing and Sales, the training period was a

good experience and a good stepping stone into the real business world.

As a future line of research, the Marketing and Sales Department at HCCBPL

could offer projects like:

Analysis Impact of advertisements on the Sales of a particular

product

Analysis of major trends in the Indian Non-Alcoholic Beverage market

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Analysis of changing trends in the market for Coca-Cola products

Formulation of Market penetration strategies.

90

RECOMMENDATION

AND LIMITATIONS

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5.7: RECOMMENDATION

Taking the above analysis into consideration, the following points can be

regarded for further marketing of the product:

Advertisements should target the entire family, mainly because it has

been observed that irrespective of age and gender, more than 75% of

the people have liked the product and look forward to buy it again.

Advertisements should highlight the main features of the product that

is the existence of pulp (which is already made prominent in

Advertisements); it should lay emphasis on the health and nutrition

value of the product and also on the fact that it is as good as fresh

fruit juice.

Due to the current prices, an eyebrow raiser for some, the product

could be sold in packs of 2 or more and there could be a price

reduction.

At Modern Trade Outlets, where shoppers buy in bulk, Minute Maid

Pulpy Orange could be given away free, if the customer buys goods

worth more than a certain price line. This strategy is already being

carried out at the Food World outlets. It could be introduced even at

Fab Mall, Subhiksha, Spencer’s Daily, Big Bazaar etc.

New flavors can be introduced into the market as early as possible

because around 30% of the consumers were eager to know if the

drink would come in more flavors and another 10% of the consumers

did not like Orange juice so they were anticipating the probable

launch of other flavors.

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Smaller packs of Minute Maid Pulpy Orange like tetra packs of 200-

300 ml can be introduced as, when a customer wants a small amount

of the drink just to

quench his thirst for that moment, he would not want to buy a bottle

containing 400 ml or 1litre of the juice. Therefore, smaller packs of

the product do come in handy.

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APPENDIX

Total number of Consumers sampled and their opinionAge

Groups Gender Opinion

  M F T Liked AverageMix

Reaction Disliked

        M F T M F T M F T M F T

5 to 15 26 19 45 23 16 39 2 2 4 0 0 0 1 1 215 to

25 42 28 70 35 18 53 3 2 5 4 812 0 0 0

25 to 35 86 108

194 56 78

134 6 8

14 6 10

16 18 12 30

35 to 45 93 96

189 65 70

135 10 6

16 6 10

16 12 10 22

45 to 55 36 54 90 21 31 52 5 4 9 5 4 9 5 15 20

55 to 65 18 40 58 8 15 23 0 3 3 6 12

18 4 10 14

65 to 75 30 20 50 12 8 20 4 2 6 5 4 9 9 6 15

 331

365

696

220

236

456

30

27

57 32

48

80

49

54

103

KeyM MaleF FemaleT TotalL LikedA AverageMR

Mixed Reaction

D Disliked

Table for Graph 1Age Group

Total No. of Consumers

5 to 15 4515 to 25 7025 to 35 194

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35 to 45 18945 to 55 9055 to 65 5865 to 75 50

Table for Graph 2Male 331Female 365

Table for Graph 3

Liked45

6Average 57Mix Reaction 80

Disliked10

3

Table for Graph 4 (In Numbers)Age Group Liked Average Mix Reaction Disliked

5 to 15 39 4 0 215 to 25 53 5 12 025 to 35 134 14 16 3035 to 45 135 16 16 2245 to 55 52 9 9 2055 to 65 23 3 18 1465 to 75 20 6 9 15

Table for Graph 4 (Rounded Up % ages used in Graph)Age Group Liked Average Mix Reaction Disliked

5 to 15 87 9 0 415 to 25 76 7 17 025 to 35 69 7 8 1635 to 45 72 8 8 1245 to 55 58 10 10 2255 to 65 40 5 31 2465 to 75 40 12 18 30

95

Table for Graph 5 (In Numbers)Gender

Liked

Average

Mix Reaction

Disliked

Male 220 30 32 49Female 236 27 48 54

Table for Graph 5 (Rounded Up %ages)Gender

Liked

Average

Mix Reaction

Disliked

Male 67 9 10 14Female 65 7 13 15

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QUESTIONAIRE

97

QUESTIONNAIRE

Perception of Consumers about Minute maid pulpy

orange

1. Name :

2. Gender: ( ) Male ( ) female

3. Occupation:

4. Income:

( ) Above 100000 ( ) Above 300000 ( ) Above 500000 ( ) Above

1000000

5. Age:

( ) 5-15 years ( ) 15-25 years ( ) 25-35 years ( ) 35-45

years

( ) 45-55 years ( ) 55-65 years ( ) 65-75 years

6. Do you drink juice?

( ) Yes ( ) No

7. Do you have any idea about Minute Maid Pulpy Orange?

( ) Yes ( ) No

8. Which type of juice you prefer?

( ) Fresh juice ( ) Bottled

9. Have you ever tasted MMPO?

( ) Yes ( ) No

10. Which juice brand do you prefer?

( ) MMPO ( ) Tropicana ( ) Real ( ) Others

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11. How often you drink MMPO?

( ) Daily ( ) 3-4 times a week ( ) Never

12. What is your opinion about MMPO?

( ) Excellent ( ) Good ( ) Average ( ) Poor

13. How is the consistency of MMPO

( ) Rich ( ) Thick ( ) Watery

14. Does it fulfill you expectation?

( ) Yes ( ) No

15. Does it quenches your thirst?

( ) Yes ( ) No ( ) can’t say

16. Is it easily available in the market?

( ) Yes ( ) No ( ) can’t say ?

17. Any suggestions?

……………………………………………………………………………………………………

……………………………………………………………………………………………………

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BIBLIOGRAPHY_______________________________________________

http://www.cybernoon.com

http://news.bbc.co.uk

http://www.thecoca-colacompany.com

http://www.coca-cola.com

http://www.ko.com

http://www.hoovers.com

http://www.google.com

http://www.wikipedia.org

Monthly circulars, Hindustan Coca-Cola Beverage Private Limited

100