AMINI PROJECT REPORT

ON

“COCA-COLA SALES STRATEGY”

SUBMITTED TO

SCHOOL OF MANAGEMENTSRM UNIVERSITY

UNDER THE GUIDANCE OFMr. P. Sarvanan

(Sr. Lecturer)

SUBMITTED BYMRINAL DEO (35107176)

ABHIJEET SINHA (35107002)NITESH SINHA

(BATCH 2007-09)

Acknowledgements

We express our sincere thanks to Mr P.Sarvanan, our Mini Project guide to

have given us the opportunity to work on such a challenging project. We

also would like to thank the consumer’s help, without which it would not

have been possible to accomplish the project successfully. Their timely

feedback has facilitated in bringing the project in the present form.

Last but not the least I would also like to thank sales executives of coca-cola. This helped us immensely to understand the psyche of the consumer. We just hope that the recommendations and suggestions presented by us are considered seriously

PREFACE

Today’s business dynamics is very fast; environment is changing. To

understand the changing market behavior and the sales force the

organization has to do a systematic study. A project work is a scientific and

systematic study intended to catch the nerves of the problem or issue with

the application of management concept and skills. We were assigned to

understand the customer’s perception and attitude towards local trains.

This report has been complied preliminary in partial fulfillment of the

requirement for the award of the degree of management studies program.

Apart from theoretical concept of the topic, we have included the findings and

suggestions.

CHAPTER 1: INTRODUCTION

1.1 Coca-Cola

Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines in more than 200 countries. It is produced by The Coca-Cola Company in Atlanta, Georgia and is often referred to simply as Coke or (in European and American countries) as Cola or Pop. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century.

The company produces concentrate, which is then sold to various licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, which has become a major diet cola. However, others exist, including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Cherry Coke, Coca-Cola Zero, Vanilla Coke and special editions with lemon and with lime and even with coffee.

In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive linked to DNA damage and hyperactivity in children, of Diet Coke. The company has stated that it plans to remove the controversial additive from its other products - including Sprite, and Oasis - as soon as a satisfactory alternative is discovered.

History

The first Coca-Cola recipe was invented in Columbus, Georgia at a drugstore by John Pemberton, originally as a cocawine called Pemberton's French Wine Coca in 1885. He may have been inspired by the formidable success of European Angelo Mariani's cocawine, Vin Mariani.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Cola. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta journal.For the first eight months only nine drinks were sold each day.

By 1888, three versions of Coca-Cola — sold by three separate businesses — were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.

In an attempt to clarify the situation, John Pemberton declared that the name Coca-Cola belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.

1.2 Brand portfolio

Name Launched Discontinued Notes Picture

Coca-Cola 1886

Caffeine-Free Coca-Cola

1984[citation

needed]

Coca-Cola Cherry

1985

Coca-Cola with Lemon

2001 2005 Still available in:

American Samoa, Austria, Australia, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina, Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, Norway, Reunion, Romania, Singapore, South Africa,

Spain, Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza

Coca-Cola Vanilla

2002 2005

Still available in:

Austria, Australia, China, Germany, Hong Kong, South Africa, New Zealand (600ml and 350 ml only) Malaysia, Sweden (Imported) and Russia

2007It was reintroduced in June 2007 by popular demand

Coca-Cola C2

2004 2007Was only available in Japan, Canada, and the United States.

Coca-Cola with Lime

2005Still available in Belgium, Netherlands, Singapore

Coca-Cola Raspberry

June 2005 End of 2005Was only available in New Zealand.

Coca-Cola Zero

2005

Coca-Cola M5

2005

Only available in Federation of Bosnia and Herzegovina, Germany, Italy, Spain, Mexico and Brazil

Coca-Cola Black Cherry

2006 Middle of 2007

Was replaced by Vanilla Coke in June 2007

Vanilla

Coca-Cola Blāk

2006Beginning of 2008

Only available in the United States, France, Canada, Czech Republic, Slovak Republic, Federation of Bosnia and Herzegovina, Bulgaria and Lithuania

Coca-Cola Citra

2006Only available in Federation of Bosnia and Herzegovina, New Zealand and Japan.

Coca-Cola Light Sango

2006Only available in France and Belgium.

Coca-Cola Orange

2007Only available in the United Kingdom and Gibraltar

Bottle and logo design

Local competitors

Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. Around the world, some local brands do compete with Coke.

Advertising

Coke has a 5¢ Coca-Cola ad in McPherson, Kansas on an old building that has survived many years. Originally, Coke sold them a huge amount of paint so that they would not have to buy any more touch-up paint for a very long

time. Coke still has some paint stashed up because they want to be sure that that advertisement never completely wears away.

An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The ad is entitled Drink Coca-Cola 5¢.

Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes", "I'd like to buy the world a Coke", and "Coke is it"

In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers earn virtual "points" by entering codes from special marked packages of Coca-Cola products into a website. These points can in turn be redeemed for various prizes or sweepstakes entries.

Criticisms

The Coca-Cola Company has been criticized for its business practices as well as the alleged adverse health effects of its flagship product. A common criticism of Coke based on its allegedly toxic acidity levels has been found to be baseless by researchers; lawsuits based on these criticisms have been dismissed by several American courts for this reason.

Since there are indications that "soda and sweetened drinks are the main source of calories in [the] American diet,"most nutritionists advise that Coca-Cola and other soft drinks can be harmful if consumed excessively, particularly to young children whose soft drink consumption competes with, rather than complements, a balanced diet. Studies have shown that regular soft drink users have a lower intake of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A. The drink has also aroused criticism for its use of caffeine, due to the possibility of physical dependence. A link has been shown between long-term regular cola intake, of which Coca-Cola is the most consumed brand worldwide, and osteoporosis in older women (but not men). This was thought to be due to the presence of phosphoric acid, and the risk was found to be same for caffeinated and noncaffeinated colas, as well as the same for diet and sugared colas.

Although numerous court cases have been filed against The Coca-Cola Company since the 1920s, alleging that the acidity of the drink is dangerous,

no evidence corroborating this claim has been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no immediate harm.

There are few reports from Center For Science & Environment (CSE), that

cost drinks are having pesticide content in it, which needs to be addressed

carefully.

CHAPTER 2: STRUCTURE:

2.1 Marketing Department Structure:

Departments of Coca Cola:

Every organization is made up of different departments, each of these

departments help Coca Cola achieve their objectives. As Coca Cola is a large

multinational company, the amounts of departments are huge. Each country

has their own Head Office and departments. Coca Cola is geographically split

into five geographic operating segments, also known as strategic business

units (SBU's). The five SBU's are North America, Africa, Asia, Europe,

Eurasia and Middle East and finally Latin America. If all these departments

perform in the correct way then that will are 6 functional departments within

Coca Cola, these are:

*Marketing

*Packaging

*Sales

*Research and development

*Administration

The Coca Cola marketing department at the Atlanta Headquarters develops

core strategies for company brands to ensure that all communication is

consistent in every market. With this cohesive effort, the Coca-Cola system

maximizes its resources for market leadership and profitable growth. The

marketing departments are responsible for marketing the products and

advertising the products and promoting the products. If all these departments

perform their duty firmly then the objectives of The Coca-Cola Company will

meets.

2.2 Sales Department Structure:

Sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity.

The "deal is closed", means the customer has consented to the proposed product or service by making full or partial payment (as in case of installments) to the seller.

A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application

and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price the seller is happy to part with ownership of or any claim upon the item. The purchaser, though a party to the sale, does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price the sale is still valid and gives rise to an obligation to pay.

At coca-cola India direct sales as well as dealer to dealer sales too.

Hirearchy wise roles are classified and each and every employee is supposed to fall in line for the same.

The General sales manager report to the general Manager.

Under General Sales Manager there are National Sales Manager, Local sales manager, retail sales manager and operations support manager

Under the local sales manager, various sales executives are working.

CHAPTER- 3.

3.1 Marketing & Sales policies (for Southern Markets)

Marketing strategies

A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centred around the key concept that customer satisfaction is the main goal.

Numero Uno Tamil movie star Vikram introduced as the brand ambassador for Coke

Launches a new TV commercial with superstar Vikram - Cool Drink Na Coca-Cola

Introduces a special PET mobile bottle on the occasion Rolls out an innovative packaging in a returnable glass bottle

(RGB) for Diet Coke Expands the hot tea & coffee retail business with the

introduction of over 1,000 dispensers across key metros in India

Maaza to be launched in a new PET pack for home consumption

‘Fanta Spin- Pudhu Butti, Fulla Naughty’ - innovative shape, an international success. TVC on air with brand ambassador Trisha and Rani Mukherjee

Thums Up Piyoge? Ninja Chalaoge? Hai Dum?- Four winners to ride home the Kawasaki NINJA ZX 6R  - one of the most powerful superbikes in the world

Limca re-launched with a fresh new positioning - Mazaa Taazgi ka

3.2 Target

1. Achieving sales volume- Ensure month on month achievement of targeted SKU wise premix volumes. Track & monitor distributor wise & machine on machine premix volumes.

2. Achieve customer targets – Achieve customer satisfaction and addressing their grievances targets. Continuously track machine on machine performance indices

3. Drive bottle placements as per month wise coke phasing – Continuously generate leads & convert them in to ideas for sales.

.4. Leading the outsourced sales team – Set & monitor performance of the outsourced sales team on a regular basis. Ensure high motivation levels for the entire team.

5. Ensure effective ‘on ground’ communication – To champion local consumer insights and work with Trade Marketing to develop & execute relevant communication. Track & monitor effectiveness of ‘on ground’ communication and signage elements.

7. Relationship Management – Manage & develop relationships with the accounts and ensure best in class service standards.

8. Reporting & administration – Ensure that all reports i.e. Sales reports, fridge installation etc. are maintained & sent to reporting manager as per set norms & at set frequency. Ensure compliance to company norms & policies for all T&E, distributor claims etc.

3.3 Sales Budget

Sales budget at Coca-Cola holds a key position in marketing strategies. As far as Chennai market is concerned, the sales budget has been dependant on the variety of print media ads and audio video advertisements. Brands are being endorsed by the celebrities, which also cost the company. The sales budget for Chennai region is pegged at 17 crores INR.

3.4 Sales territory

It is the segment of the market for which a salesperson is responsible. Territory assignments may be exclusive, meaning no other salesperson can sell in that territory, or nonexclusive. Territories may be defined in terms of geographic or market segments, product or product lines, size of customer or by specific customers or prospects. The best territories with the greatest revenue potential are usually assigned to the best salespeople. The individual talents or characteristics of the salespeople can also be used to determine territory assignments. It takes a different skill set to make sales to large corporations than to small retailers. Geographic territory assignments should be made so as to minimize the travel expenses incurred by any one salesperson. When creating geographic territories, the density of the prospect base will determine the size of the territory.

Chennai territory spans from North Chennai and South Chennai. North Chennai includes regions like, Vyasarpadi, Ambattur, Padi, Perambur, Etc. whereas south Chennai region includes Nungambakkam, Guindy, Pallavaram, Kanchipuram, etc.

3.5 Routing & Scheduling

Routing is the process of selecting paths in a network along which to send network traffic. Routing is performed for many kinds of networks, including the telephone network, electronic data networks (such as the Internet), and transportation (transport) networks. This article is concerned primarily with routing in electronic data networks using packet switching technology.

Routing, in a more narrow sense of the term, is often contrasted with bridging in its assumption that network addresses are structured and that

similar addresses imply proximity within the network. Because structured addresses allow a single routing table entry to represent the route to a group of devices, structured addressing (routing, in the narrow sense) outperforms unstructured addressing (bridging) in large networks, and has become the dominant form of addressing on the Internet, though bridging is still widely used within localized environments.

Routing in terms of FMCG industry sheds light on the supply chain side of the aerated drinks. How the bottles are delivered across the territories. There are two big warehouses for the north and south Chennai, from which the bottles are sent across different locations.

Scheduling is the process of ensuring whether the delivery of consignment will be on time or not. At Coca-Cola India, for chennai operations they schedule as per the market and dealer requirements.

3.9 Recruitment & Selection

Recruitment refers to the process of sourcing, screening, and selecting people for a job at an organization or firm, or for a vacancy in a volunteer-based organization or community group. While generalist managers or administrators can undertake some components of the recruitment process, mid- and large-size organizations and companies often retain professional recruiters or outsource some of the process to recruitment agencies.

The recruitment industry has four main types of agencies employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, and in-house recruitment. The stages in recruitment include sourcing candidates by advertising or other methods, and screening and selecting potential candidates using tests or interviews.

At Coca-cola India recruitment process is very rigorous and the best only gets selected to work for the coveted post at Coca-Cola India. Either the company visits the B-Schools or they outsource the recruitment activities to third party or job sites or referals.

3.10 Training

The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. It forms the core of apprenticeships and provides the backbone of content at technical colleges and polytechnics. In addition to the basic training required for a trade, occupation or profession, observers of the labor-marke recognize today the need to continue training beyond initial qualifications: to maintain, upgrade and update skills throughout working life. People within many professions and occupations may refer to this sort of training as professional development.

At Coca-Cola India, the training is of utmost importance.

Coca-Cola generally categorize such training as on-the-job or off-the-job:

On-the-job training takes place in a normal working situation, using the actual tools, equipment, documents or materials that trainees will use when fully trained. On-the-job training has a general reputation as most effective for vocational work.

Off-the-job training takes place away from normal work situations — implying that the employee does not count as a directly productive worker while such training takes place. Off-the-job training has the advantage that it allows people to get away from work and concentrate more thoroughly on the training itself. This type of training has proven more effective in inculcating concepts and ideas.

Chapter 4: FINDINGS & SUGGESTIONS

After our consitent interaction with the company, we found that the rate of attrition among the sales force was pretty high. Once the new recruits were given proper training and skills, they worked for very few months and left the job. The possible reasons quoted by the expats were, the hectic schedule and the distance commuted by them and the amount of work pressure took toll on their psyche.

The company needs to have an awareness campaign every 6 months to control and motivate the sales force. Irrespective of the market cnditions the sales force and other executives should be motivated to strive for the ultimate goal and share organization’s view. Regular yoga classes could go a long way in reducing the undue stress on the sales force.

Chapter 5: CONCLUSION

With the increase in the number of competitors and the cola war on, the company can’t undermine it’s sales force which will be the backbone for the company in sustaining the market pressures and threats from competition. The sales team at Coca-Cola India has been effectively handling the regulart operations of the company and on time performance. At the same time the organization has to do the other basic ground work of keeping there sales force in good shape and helping them in reaching organizational goals. Over the years sales budget has increased considerably due to various reasons.

We sincerely hope that the suggestions and recommendations given by us wil be considered seriously.

BIBLIOGRAPHY

1.) en.wikipedia.org2.) www.google.com

3.) www. coca - cola .com

4.) www. coca - cola india.com

5.) Marketing, Kotler,Jha