CHITKARA

UNIVERSITY

.- . . .. .
;:

;iJ!E

-l

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Kandhari
Beverages Private
Limited
An Internship Report

A n a m i ka Ta raf da r
M090700007

IN PARTIAL FULFILMENT OF THE MASTERS PROGRAMIN BUSINESS

ADM INISTRATION,

ACADEMIC SESSION 2009-11

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PRE FACE
In su mmer the consumption of soft dri nks is more due to hot weather in this time
chilled weather is needed everywhere and everybody irrespecti ve of age difference_ In th e
market peoples not only need water, but they want some taste too_ Here comes the need of soft
drinks: it has become an essential part o:f market as people like it in addition to the bottles,
now days packages o:f soft drinks i.e. Tin cans, Pet packs o:f i.e. Litters canisters and
dispensers are introduced to enhance the impact in sales_
The l'vfater 's curriculum is designed in such a way that stud ent can grasp maximum
knowl ed ge and can get practical exposure to the corporate world in n:riniml.lll'.l possible
time_ Bu siness schools of today realize the importance o:f practical knowledge over the
theoretical base.
The research report is necessary for the partial fulfillment of l'vfaster 's curriculum and it
provides an opportunity to the student in understanding the indu stry wi th speci al empha sis
on the development of skills in anal yzing and interpreting practical problem s through the
application o:f management theories and techniques. It is a new platform of learning through
practical experience, which incorporates survey and comparative analysis_ It gi ves the
learner an opportunity to relate the theory with the practice, to test the validity and
applicability o:f his classroom learning against real life bu siness situati ons.

ACKNOWLEDGEMENT

We think if any of us honestly reflects on who we are, how we got here , what we think
we might do well, and so forth. we discover a debt to others that spans wrinen history. The
work of some unknown person makes our lives easier every day. We believe it's
appropriate to acknowledge all of these unknown persons; but it is also necessary to
acknowledge those people. we know have directly shaped our lives and our work:.
I express my gratitude to the Kandhari Beverages Private Limited (KBL) and Mr. Eesh Sethi.
General M:anager for giving me an opportunity to work with them and make the best out of
my internship.
I specially thank my trainers, Dep uty General l'Vfanager JVf r_ Sagoo for constantly gui ding
and supporting me throughout the training period. M:y heartfelt gratitude also goes out to the
staff and employees and specifically to JVEiss Preeti Bain, l'Vfarketing Research Executive at
KBL for co-operating with me and guiding me throughout the three months of my internship
period.
I thank my school . Chitkara Business School for being the constant driving force to put
to practice , the theoretical knowledge that I imparted from the program. I thank the
internship co coordinators. Dr. S.R.Taneja. Dr. Sandhir Sharma and Dr. Santhosh for
imparting their wisdom on my thought process.
Last but not of least importance , I take this opportunity to thank my parent s and f riends
who have been with me and offered emotional strength and moral support.

Table of Con.ten.ts

Annexure A: Overview of t.he Company

CHAPTER 1: INTRODUCT ION ............................................................

L 1: A brief in sight- Th e FMCG Industry in India. _ _ _ ._ _ ._ .._ _ .._ _ ._ _ .._ _ .._ _ . _ _ .. ._ .._
.. _ _ 1.2: A brief :insight- 'Tb.e Beverage In.dustry in India _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ 1.3: Industry Profile.._ _ .._ ._ _ _ _ _ _ _ _ ._ _ ._ .._ .._ _ ._ _ ._ _ ._ .._ ._ _ _ ._ _ ._ .._ _ ._ _ .._ .._ ._ .._
.._ _ .----CHAP'I'ER 2: TIIE COCA- COLA COI\IIP.ANY ..........................................
2.1: History of Coca-<:ola .._ _ .._ ._ _ ._ _ _ ._ .._ ._ .._ _ ._ _ .._ .._ ._ _ _ _ _ ._ _ ._ _
2.2: Evolution of Coca-Cola .._ _ ._ _ ._ ._ _ _ _ ._ _ ._ _ ._ _ _ _ _ _ _ _ _ _ ._ ._ _ _ _ _ ._ ._ _ _ _ _ _ _ ._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
2.3: Mani resto for Growth _ _ ._ .._ ._ ... _ .._ _ .. ._ .._ ._ _ ._ _ .._ .._ _ ._ .._ .._ _ .._ ._ _ ._ ._ _ .._ _ .. _ ......_ _ .
2.3. l :Values_ . _ _ ._ _ _ _ _ ._ _ ..._ _ _ _ _ _ .. _ . _ _ .. _ _ ._ _ _ _ ._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ ._ _ _ _ _ _ _ _ ._ _ ._ _ .. _ _ ._
2.3.2: Mission. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ._ _ ._ _ ._ _ ._ _ _ _ _ ._ _ _ _ _ ._ _ . _ _ .. _ _ _ _ _ .. _ _ _ _ _ _ _
2.3-3: Vision for Sustain.able Growth .._ _ _ _ _ _ _ _ .. . _ _ _ _ _ _ ._ . _ . _ _ ._ ..._ _ _ _ _ .. ._ ._ _ .. _ _ ._ _ _ _ _ _ _ _ _ _
CHAP'I'ER

3:COCA -COLA

PRODUCTS .............................................

3.1 : Brands of Coca-Cola _ ._ _ ._ ._ _ _ ._ _ ._ _ ._ _ _ _ _ _ _ _ ._ _ ._ _ ._ .._ _ ._ _ .._ ._ _ ._ _ _ ._ ._ _ ._ _ ._

CHAPTER 4: KANDHARI BEVERA GES PR.IVATE LilVIrrED
4.1: Introduction to the Company. _ _ ._ _ _ ._ _ ._ ..._ _ _ _ _ _ _ ._ _ ._ ._ _ _ ._ _ ._ _ ._ _ ._ _ ._
4.2: Coca-Cola and Franchi see .._ _ ._ ._ _ _ .._ _ ._ ._ _ _ _ _ _ _ _ _ _ _ ._ _ ..._ _ _ _ ._ _ _ _ _ _ _ _ _ _ _ _ _ ._ _ _ ._ _ .- - - 4.3: The Company _ _ _ - - - - - - - - - - - - -- - - - - - - - - - - - - -- - - - - - .. _
4-3. 1: Mru:1ifesto for Growth- - - - --- - - - - - - - - 4.3.2: Man.agen1ent._ _ _ _ _ _ _ _ _ _ _ _ ._ _ . _ _ ._ _ _ _ _ _ _ ._ _ _ _ _ _ ._
4.3.3: Human Resour ces.. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _
4-3.4: Kand.hari Beverages Pvt. Ltd. _ _ ._ _ .._ .._ _ ._ .._ _ _
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4-3.5: Enrich Agro Food Products Pvt.Ltd .._ _ _ _ _ _ _ _ _ _ _ _ _ _

_ 4-3.6 : Growth Record ....._ _ ._ _ _ _ _ _ _ _ ._

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4.4: Organization Structure ........................... ..................

4.5: :Manufacturing Unit of KBL............ ........................ ....... . .................. .
4.6: :Manu:fa cturing process at KBL ............ ....._ _ ..... .. ......_ ....._ ......_ ...._ .....
4.7: Bu siness Plan model at KBL .................................... .........................
4.8: Distri bution Network....._ ....._ _ ._ _ .............. .... ........._ ..- - - . .............
4.8.1: Distribution Routes ............... ........................ ..................
4.8.2: Distributi on System .................................... ..................
4.8.3: Departments involved in the Distribution process ............ .........
4.9: SWOT Analysis of .KBL ............................................. ....................... .
4.9.1: Strengths.................................. ........... ........................... ....
4.9.2: Weaknesses......._ ......................... ..................._ ...................
4.9.3: Opportunities .................. ........................ .......................... .
4.9.4: Threats ..................... ......................... .......................... ......
4. 10: Competitors to KBL . ................................ ................ ........... ............

CHAPTER 5: FINANCIAL ANALYSIS.......................................................

5.1: Financial

statements ........................................................................

CHAPTER 6:STRATEGIC .IVIANAGE:M:ENT BY COCA-COLA ........................

CHAPTER 7: FUTURE PLAN - THE ROAD:M:A.P...........................................

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Annexur e B: Summ.er Project Undertaken

CHAPTER 8 : THE PRO.JECT

........................................................

8.1: Executi ve Sum.mary ...... ............ .................................. ..................

8.2: Nee d and Objective of the Study........ ......_ _ _ .... ..._ _ . ...._ .._ .. . .._ .._ _ _ .... ._ .. .
........

8.3: Cri tical Literature Revievv _ ._ ... _ .._ ....._ .._ ._ .._ _ ..._ . ..._ ........_ .._ .._ ._ .._ ._ .. _ ._ ._ .
8.4: Research :Methodology ....._ _ ...._ ..... ................ ......... ....._ .._ ............
CHAPTER 9 : INTERPRETATION AND ANALYSIS
.....................................
9.1:Data Interpretation .._ .._ ........_ ........... ..._ .._ ......_ ................_ .._ ...
9. 1.1: Graph 1: Total number of Consumers based on Age Group . .....
9.1.2: Graph 2: Total number of Consumers based on Gender............
9.1.3: Graph 3: General reaction of Consurners about :M:MPO......... ....
9. 1.4: Graph 4: Reaction analyzed on basis of Age Group ..... ..............
9.1 .5: Graph 5: Reaction analyzed on basis of gender. ...._ . .._ ...... _ . ....
_ .._ . 9.2: End Con sumer Questionnai re .._ .._ ..._ .._ . ......_ ......_ ........_ .._
...._ ... 9.3: Q2 ANALYSIS ....... ......... . .............. . ............ .
............ ..........
9.3.1: Trend Analysis............. .................... .................. ...
9.3.2: Gap Analysis........ ..._ .................... ... ..._ ......... ............... ...
9.3.3: Implemen tations........... ........................................ .................
9.3.4: Recommendations .......................... ... . ........................... .........
CHAPTER 10: SO:ME SPECIFIC OBSERVATION
..........................................

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Anne:xure C: Market Research Execution

CHAPTER 11:EXECUTIVE SUlVIIVIARY ..........................................

CHAPTER 12: SEGlVIENTATION IVIODEL -- RED ..........................................
CHAPTER 13: S.AJ.VIPLING BY CCI............ ..............................
CHAPTER 14: l\IIARKET IACT TEAI\II ..........................................
CHAPTER 15: OPEN REVIVE GROUP (ORG ACCOUNT) ..............................
CHAPTER16: PLACEI\IIENT OF SGA IN
CHAPTER

.................................

17: SOI\IIE SPECIFIC OBSERVATION ........................................

CHAPTER 18: PROI\IIOTIONAL ACTIVITY .............................................

CONCLUSION
APPENDIX

.....................................................................................

.........................................................................................

BIBLIOGRAPHY

.................................................................................

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EXECUTIVE SUMMARY
Coca-Cola. the product that has gi ven the world i t s best-k::novvn taste was born in
Atlanta

Georgia,

on

ay

manufactur er, marketer

8,

1886.

Coca-Cola

and distributor

Company

of non-alcoholic

is

the

beverage

world's

leading

concentrates

and

syrups, used to produ ce nearly 400 beverage brands_ It sells beverage concentrates and
syrups to bottling and canning operators, distributors, 1-:ountain retailers and fountain
wholesalers. Coca-Cola was first introduced by John Syth Pemberton , a pharm acist , in
the year

1886 in Atlanta, Georgia

three-legged

brass

kettle

in

when he

concocted

hi s back yard. He

first

caramel-colored

""distributed" the

syrup in
product

a
by

carrying it in a jug down the street to J acob's Pharmacy and customers bought the
drink for five cents at the soda fountain.
Carbonated

water

was

teamed

wi

th

the

new

syrup,

whether

by

accident

or

otherwise, produ cing a drink that was proclaimed "delicious and refreshing", a theme
that continues to echo tod ay wherever Coca-Cola is enjoyed. Coca-Cola originated as
a soda :fount ain beverage

in

1886 sellin g for five cent s a glass. Early growth was

impressi ve, but it was only when a strong bottlin g system developed that Coca-Cola
became the world-famous brand it i s t oday_ 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 equit y stake as required under

the

Foreign

Regulat ion Act (FERA)

which governed the operations of foreign corripanies in India_

In the new liberali zed and deregulated environment m 1993, Coca-Cola made its reentry into Ind ia throu gh one of its largest bottler, KBL, the North Indian bottlin g
arm of the Coca-Col a Company.
The main objective 01-: this stud y lies in understanding the organization and studying
the market of the SSD (sparkling soft drinks) brand s by Coca-Cola and und erstanding
the consumers' perception and opinion about the products, with more inclination towards

the

study on mar:ket of jui ces and Kinley water &

soda,

and the respective competitor 's

analysis_
This

report will also give insight

to the company's

norms to

maintain standards,

the

production process, their strategies to keep up with their retailers, company's approach
towards the sales of SSD and most importantly this report will provide an opportunity to
know the psychographic needs of the retrulers which in turn shows the company an avenue
to create a good future plan_ This report will provide detruled information about prevailing
market

competition

and

thus

prepare itself to

meet the market challenge by

making

adjustment in its new strategy and promotional activity.

The project begins with in-depth interview with the owner of retrul outlets, as primary
source,

to

extract

the

reality

on

ground

level

about

retailer's

psychology'

as

our

distributor and co mpetitor 's po sition and strategy'_ The third n eed was to know the
psychographic need s of our consumers, which was achieved by feedback/questionnaire
process

among

100

to 150

analys is of data via graphs

under

the

tag

of

youngsters.
and

open

The

conclusion

ended

drawn

from

are

the

quantative

represented

gap analysis/grievances and implications/ su ggestions.

1n

Chapter 1: INTRODUCTION

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

quick

turnover

and

relat

vely low cost_ Consumers generally put less thoug ht into the purchase of
FMCG than they do for other products_
The

Indian

FMCG

industry

witnessed

1990s_ Many players had been facing

severe

significant
problems

changes

on account

through

the

of increased

competition from small and regional players and from slow growth across its various
product categories_
their product,

As a result , most

marketing, distribution

of the companies were

and customer service

f orced to revamp

strategies to

strengthen

their position in the market_

By the turn of the 20th century , the face of the Indian FMCG industry
had changed significantly _ VVith 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 f amilies and
the growing number of working couples resultingin increased spending power also
contributed to the increase in the Indian consumers' personal consumption_ The
real zation of the customer's growing awareness

and the need to meet changing

requirements and preferences

on

ifestyles

producing companies to

required

the FMCG

account

of

changing

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
growth of the organized retailing sector_

qual fied

manpower

also

boosted the

Though the

absolute profit made on

FMCG products is relatively small,

they generally sellin 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 masslayoffs 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 i....espective of global market dip, because they generally satisf y rather fundamental,
as opposed to luxurious needs_ The FMCG sector, which is growing at the rate of
9/o
is the fourth largest sector in the Indian Economy and is worth Rs_93000 ci-oi-es_
The main contributor , making up 32/o of

the sector , is the South Indian region_

It is predicted that in the yea.- 2010, the FMCG sector will be worth Rs_ 143000 ci-oies_ The sector being one of the biggest sectors of the Indian Economy provides up
to 4 million jobs_
The FMCG sector consists of the following categori es:

Personal

Care-

Oral

care,

Hair

care ,

VVash

(Soaps),

Cosmetics

and

Toiletries, Deodorants and Pei-fumes, Pape.- products (Tissues, Diapers ,

Sanitary products)
Leve.-

Limited,

and

Shoe

care;

the

major

players

Godi-ej Soaps, Colgate, Ma.-ico ,

being; Hindustan

Dabui- and Procter &

Gamble_

Household Care- Fabric wash (Laundry soaps and synthetic detergents

),

Household

cleaners

(Dish/Utensil/

Floor/Toilet

cleaners),

Air

fresheners,
Insecticides and Mosquito i-epellants, Metal

polish

and

Furniture

polish; the

major players being; Hindustan Leve.- Limited, Nii-ma and Ricket Colman_

Branded

and

Packaged

f oods

and

beverages-

Health

beverages,

Soft di-inks, Staples/Cereals, Bakery products (Biscuits , Breads, Cakes),

Snack foods ,

Chocolates,

Processed vegetables,
Bi-anded rice,

Ice-creams,

Processed

meat,

Tea,

Coffee,

Bi-anded

Processed

flour,

Bottled

fruits,

water ,

Branded sugar, Juices; the major players being; Hindustan Lever

Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur.
Alcoholic

Non-Alcohol c

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

1_2: A brief insight- The Beverage Industry in India

In India, beverages form an important part of the l ves 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 satisf y the existing consumers_
Cola

Non-Cola

BEVERAGE INDUSTRY IN IND/A

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 segmentingit
are as follows:

Alcoholic , non-alcoholic and sports beverages_

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Natural and Synthet c beverages_

In-home consumption and out of home on premises consumption_
Age

wise

segmentation

Le_

beverages

for

kids, for

adults

and

for

senior citizens _

Segmentation

based

on

the

amount

of

consumption i_e_

high

levels

of consumption and low levels of consumption_

If
be

the behavioral patterns

observed

that

of

consumers

consumers in India ar e closely

perceive

beverages are a luxury and that

These

two

perceptions

ar

beverages

beverages have to

the

biggest

in

two

noticed, it could

different

ways

i_

e_

be consumed occasionally _

challenges

aced

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_
Soft drinks witnesses healthy growth inIndia
Soft drinks recorded robust double digit off -trade value growth in 2009, which was
higher than that witnessed in 2008_ Bottled water and fruit/vegetable juice
continued to grow strongly as more consumers turned to these productsin the
search of
healthier options_ Carbonates also witnessed good sales growth as the long
summer helped to f uel sales_ Energy drinks has witnessed a slowdown in sales
growth as its is a premium priced product type and therefore not considered a
necessity_ Importantly , more consumers ref rained f rom spending on nonessential tems in the wake of the economic downturn_
Soft drinksis expected to record healthy sales growthin the forecast period
Soft drinks is expected to witness a healt hy double-digit total volume GAGR growth
over the forecast period_ As consumer awareness and understanding of t he variety
of soft drinks increases and as manufacturers continue to be innovative, soft drinks
is expected to perform welL Products on the health and wellness platf orm andniche
categories can expect to see good sales growth in the forecast period_

Chapter 2 : TH E C OCA-CO LA COM PAN Y

Headquarters:One Coca-Cola Plaza Atlanta, GA 30313

Employees : 71,000
CEO:Neville lsdell
Stock Symbol: KO
Website :http://www _ Coca-Cola_ com/
Coca-Cola

is

the

world's leading

beverage company_ The company is the

world's leading manufacturer , marketer ,

concentrates

and

company makes

syrups,

used

and distributes

to

and

produce

distributor of
nearly

400

nonalcoholic beverage

beverage

sodas, waters, fruit juice, teas

brands

_ The

and coff ees

and

energy drinks_ Through the world's largest beverage distribution system , consumers
in more than 200 countries drink the company's beverages at a rate exceeding 1_5
billion servings each day_ Maj or brands include Coke, Diet Coke, Sprite , Bacardi,
A&VV , Minute Maid, Dasani, Nestea, Powerade and Hi C_

2.1

History of Coca-Cola
Coca-Cola
pharmacist
Pemberton
legged

was

inventec:f

from

Atlanta

concocted

brass

kettle;

by

Doctor

Georgia

the

Coca-Cola

all this

was

John

in a May

Pemberton

of1886_

formula

done in

his

in

John
three

backyard_

The name Coca- Cola was actually given to John Pemberton

by

his

bookkeeper

penmanship_

He

first

Frank

Robinson

scripted

had

"Coca-Cola"

excellent
into

the

flowing letters which has become the famous logo we know

and love today_
The soft drink was first sold to the public at the soda fountain in Jacob's
Pharmacy in Atlanta on May 8, 1886_ About nine servings of the soft drink were
sold each day_ Sales for that first year added up to a total of about $50_ The

funny thing was that it cost John Pemberton over $70 in expanses , so the first
year of sales were a loss_ Until 1905 , the soft drink, marketed as a tonic,
contained extracts of cocaine as well

as the caff eine-rich kola nut. In 1887, another Atlanta pharmacist and businessman,
Asa Candler bought the formula for Coca- Cola from inventor John Pemberton for
$2,300.
By

the

late

1890s, Coca-Cola

was

one

of

America's

most

popular

fountain

drinks; Candler's aggressive marketing of the product takes credit for that. VVith
Asa Candler , now at the helm, the Coca-Cola Company

increased syrup sales

by over 4000/o between 1890 and 1900.

Advertising

was

animportant

factor

in

John

Pemberton

success and by the turn of the century, the drink was

States

and

Canada.

Coca-Cola

began

selling

syrup

and

Asa

Candler's

sold across the United

to

independent

bottling

companies licensed to sell the drink. Still today , the US soft drink industry is
organized on this principle

2.2 : Evolution of Coca-Cola

Coca-Cola originated as a soda fountain beverage in 1886 selling for
five cents a glass. Early growth was impressive , butit was only when a strong
bottling system developed that Coca-Cola became the world-famous brand it is
today.
.,894 - A rnodest star t f or a Bold Idea
In

candy

beverage

store

called

in

Vicksburg,

Coca-Cola

Mississippi,

impressed

Biedenharn. He began bottling Coca-Cola

called
owned

Hutchinson. Biedenharn

the

Company. Candler

sent

thanked

brisk

the

sales

store's

of

the

owner

new
,

to sell, using a common

case

him

but

to

Asa

took

Griggs

no

fountain

Joseph

glass bottle

Candler,

action.

A.

One

of

who
his

nephews already had urged that Coca Cola be bottled, but Candler focused on
fountain sales.
"1899 The 'first bottling agreernent
Two

young

they

could

attorneys
build

from

Chattanooga,

business

around

Tennessee

bottling

bel

eved

Coca-Cola.In

meeting

with

VVhitehead

Candler,
obtained

Benjamin
exclusive

across most of the United

F.

Thomas

rights

to

and

bottle

Joseph

B.

Coca-Cola

States

(specifically

excluding

Vicksburg)

for

the

sum

of

one

dollar.

third

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

"/ 900-'I 909... Rapi d gr o11Vth
The three pioneer bottlers divided the country into territories and sold bottling rights
to local entrepreneurs. Their ef forts were
technology ,

boosted by major

progress in bottling

which improved efficiency and product qual ty. By 1909, nearly 400

Coca Cola bottling plants were operating, most of them fami y-owned businesses.
Some were open only during hot-weather months when demand was high.
'I 9 '16... B irth of' the contour bottle
Bottlers

worried that the straight -sided bottle for

easily confused with

Coca-Cola was

imitators. A group representing

the Company

and bottlers asked glass manufacturers to offer ideas for a

distinctive

bottle.

Company

of

de.sign

Terre

enthusiastic approval in

from

the

Haute,
1915

Root

Glass

Indiana

and

was

won

introduced

in 1916. The
contour

bottle

trademark

became

status

one of

by the

U.S.

the few
Patent

packages

ever granted

Office. Today, it's

one

of

the most recognized icons in the world - evenin the dark!

'I 920s ... Bottl ing over takes f'"ountain 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

hit after their 1923 introduction. A few years later, open-top metal

a huge

coolers became

the forerunners of automated vending machines. By the end of the 1920s, bottle
sales of Coca-Cola exceeded fountain sales.
'I 920s and 30s ... In terna ti on al expansion
Led by longtime Company leader
executive

officer

and chairman

Robert VV. VVoodruff , chief

of the Board, the

Company

began a major push to establish bottling operations outside the U.S. Plants were

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opened

in France,

Guatemala ,

Honduras ,

Mexico ,

Belgium,Italy ,

Peru,

Spain, Australia and South Africa. By the time World VV ar II began, Coca-Cola
was being bottled in 44 countries.

'1940s... Pos t -vvar gr ovvth

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.
'1950s ... Packaging innovati ons
For

the

package

first

time,

size

contour bottle,
26-ounce

consumers had

and
or

type

the

choices of Coca-Cola
traditional

6.5-ounce

larger servings including 10-,

versions.

Cans

were

also

12-

and

introduced

becoming generally available in 1960.

'1 960s ... Nevv brand s intr oduced
Following Fanta in the

1950s , Sprite , Minute Maid, Fresca and TaB

joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Vella were added in
the 1970s. The

1980s brought diet Coke and Cherry Coke, followed by

POVVERADE and DASANI

are

offered

to

in

the

1990s.

Today

hundreds

of

other

brands

meet consumer preferences inlocal markets around the world.

'1970s and BOs... Consol idation to ser ve c us torners

As technology led to a global economy, the retailers who sold Coca-Cola merged
and

evolved

into

international

approach. In response,

many

mega-chains.
small

Such

customers

and medium-size

bottlers

required

new

consolidated to

better serve giant

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

bottle.- consolidations to assure that its largest bottling partners would have
capacity to lead the system in working with global retailers .

'1990s -- - Ne11V and gr o11V ing markets

Political

and

economic

underdeveloped for

changes

opened

vast

markets

decades. After the f all of

the

that

were

Berlin VV all, the

closed

or

Company

invested heavily to build plants in Eastern Europe. And as the century closed,
more than $1.5 billion was committed to new bottling facilities in Africa..
2"/ st Century

The

Coca-Cola

bottling system

communities. This

heritage

grew

serves

up

the

with

roots

Company

well

deeply
today

planted
as

in

local

people

seek

brands that honor local identity and the distinctiveness of locaJ markets. As was
true

bottlers,

century

ago,

customers

strong

and

locally

communities

based
are

relationships

the

foundation

between
on

which

Coca-Cola
the

entire

business grows.
2001 ... launched the new fridge pack in USA a thinnerlonger 12 pack design
2005 ... innovative aluminum contour bottles introduced commonly called M5 as
the magnificent five bottles. , Coca-Cola zero a zero calorie Coca- Cola with real
Coca Cola taste launched.
2006 . . Coca-Cola turns 120 . Launches the M every drop counts" campaign to
make the consumers remind of the vari ety of products Coca-Cola offers.
2007 ... launches the

PET bottle which uses 5/o less plastic t han the other

PET bottles opens up new world of Coca-Cola in Atlanta Georgia on May 24th_

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2.3 : Manifesto for Growth

The world is changing all around us_ To continue to thrive as a business
over the

next ten years

and beyond, we

must look ahead, understand the trends

and forces that will shape our business in the future and move swiftly to prepare for
what's to

come_

VVe must

Vi sion is all about_ It

get

ready for

tomorrow today_

That's what

our

2020

creates a long-term destination for our business and provides

us with a "Roadmap" for winning together with our bottling partners_

2.3.1: Our Mission

Our Roadmap starts with our mission, which is enduring_ It declares our purpose as
a company and serves as the standard against which we weigh our actions and
decisions_
To refresh the world_ _ _
To inspire moments of optimism and happiness_ _
_ To create value and make a difference_

2.3-2 : Our Vision

Our vision serves as the framework for our Roadmap and guides every aspect of
our business

by

describing

what

we

need

to

accomplish in order

to

continue

achieving sustainable, qual ty growth_

People: Be a great place to work where people are inspired to be the best
they can be_

Portfolio: Bring to the world a portfolio of qual ty beverage brands that

anticipate and satisfy people's desires and needs_

Partners: Nurture a winning network of customers and suppliers, together

we create mutual, enduring value_

Planet: Be a responsible citizen that makes a difference by helping build

and support sustainable communities_

Profit: Maximize long-term return to shareowners while being mindful of our

overall responsibilities.

Productivity: Be a highly effective , lean and fast-moving organization.

2.3.3

: Our Winning Culrnre

Our VVinning Culture defines the attitudes and behaviors that will be required of us
to make our 2020 Vision a real ty.

2.3.4

: Live Our Values

Our values serve as a compass for our actions and describe how we behave in
the world.

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius
Integrity: Be real
Accountability: Ifit is to be,it's up to
me Passion: Committed in heart and
mind Diversity: As inclusive as our
brands Qual ty: VVhat we do,we do
well

2.3.5: Focus on t:he Market:

Focus on needs of our consumers ,customers and franchise
partners Get out into the market and listen, observe and learn
Possess a world view
Focus on execution in the marketplace every
day Be insatiably curious

2.3.6

: Work Smart:
Act with urgency.

Remain responsive to change.

Have the courage to change course when needed.

Remain
constructivelydiscontent. VVork
efficiently.

2.3.7

:Act: Like Owners

Be accountable for our actions and inactions.
Steward system assets and focus on bui ding
value.
Reward our people for taking risks and finding better ways to solve
problems. Learn from our outcomes -- what worked and what didn't.

2 .3.8: Be t:he Brand

Inspire c reativit y , passion, opt imism and f un .

Chapter 3: COCA-COLA 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_

3.1: Brands of Coca-Cola

Coca-Cola

ZeroCB>

has

been

one

of

the

most

successful

product launch hes in Coca-Cola's history. In 2007 . Coca-Cola's

-'

sold nearly
450
the

million

cases

same

size

globally_ Put
as

Philippines.one of our top

For those with a high-intensity approach

life,

Drinks

perspective, that's
total

business

15 markets_ As of

roughly
in

Coca-Cola's
contain

brands

of

ingredients

Energy

such

as

ginseng extract. guarana extract. caffeine

Energy Drinks

:'!

and B vitamins_

Juices/Juice Drinks
Juices/Juice
Drinks

the

September 2008,

Coca-Cola Zero is available in more than 100 countries_

Energy Drinks
to

into

Coca-Cola's

V\/e bring innovation to the

in Coca-Cola's

more

drink brands.

offering

children

than

goodness
20 juice

both

of juice

and juice

adults

and

nutritious , refreshing and flavorful beverages .

Soft 0..-h lies

Sott Drinks
Coca-Cola's

dozens

of

soft

drink

brands provide flavor and ref reshment in

a

variety

of

choices.

From

the

original

Coca-Cola to most recent introductions ,

soft

drinks

from

The

Coca-Cola

Company are both icons

and innovators in the beverage
industry_
Sports Drinks
Carbohydrates .
electrolytes team
Coca-Cola's

fluids ,

Sports

providing

rapid

and terrific

taste

seekers at

any

and

together

in

Water

Drinks,
hydration

for

fitness-

level.

Tea and Coffee

in

its

Beverages

offer

hydration

S
pTea and
Coffee
or
tsB

D
o
rit
nt
kl
se

offees provide

both traditional tea drinkers

consumers' favorite

and today's growing coffee

drinks in convenient

culture.

take-anywhere
packaging. satisfying

LJ

W ter

d
'
a
n
d
c
a
n
n
e
d
t
e
a
s
a
n
d
c

Smooth

and

purest form.

essential, our

Waters

and

v;o

t 1

Other Drinks

Other Drinks
So much more than sof t drinks. CocaCola's brands also include milk products,
soup, and more so you can choose a
Coca-Cola Company product anytime,
anywhere for nutrit on, ref reshment or
other needs.

Coca-Gola India
In the Cola Section:

In the Lemon section:

In the Orange section:

Emlll
In the Juice section:

In the Soda Water and Bottled Mineral Water section:

In the Tonic Water section:

In the Tea and Coffee section:

Chapter 4 : KANDHARI BEVERAGES PVT. LTD .

4.1: Introduction to the Company

Coca-Cola was the leading soft
left rather
stake

than

reveal its

formula

to

drink brand in India until 1977, when it

the

Government

and

reduce

its

equity

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
1
26

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. VVith access to 53 of Parle's plants and a well set bottling network, an
excellent base for rapid introduction of the Company 's lntemational 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 brandimage 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.

'p.ii)

1f

KANDHARI GROUP was established in 1967 by Late Mr.

Teja Singh Kandhari,is presently a progressive business
house in
India_ The group's first venture was a bottling unit as a franchisee
of PARLE's soft drink manufacturing

Gold Spot " under license

from PARLE established at Amritsar in the north Indian state of

Punjab.Kandhari Beverages Ltd is among Coca-Cola India's top 4 franchisee
bottlers.Over a period of time,the Group ventured deep into Aerated VVater
business and expandedits scope of operations to other Indian states including
Punjab, Haryana, Chandigarh and
Himachal Pradesh.

In 1993,the world renowned soft drink giant

bought
over
-

entered
and , being one
PARLE Coca-Cola
brand of soft
drink India
products

of t he star bottlers of PARLE the Group switched to manufacturing, bottling &

marketing of Coke brand of soft drink products.

4.2: Coca-Cola and Franchisee

Coca-Cola is made up
manufacturing locations, 27

of 7000 local employees , 500

Company

COBO

Franchisee Owned Bottling

FOBOOperations

Owned

Bottling

( FOBO) and a network

CONTRACT PACKAGI NG
Packers that facil tate the
manufacture process

of

company. It

network

retail

outlets

cater

to

the

also has
and

supporting

distribution

8000 distributors. Almost

Indian

market

are made

managers, over 60

Operations

all

a range of

goods

locally,with

help

of

(COBO),
29

products for

consisting

of

and

services

of

technology

17

Contract
the

700,000

required to
and skills

within the Company.

FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN IND/A

4.3: The Company

4.3.1: MANIFESTO FOR GROWTH
OUR MISSION
In line with our main partner Coca-Cola we wish to refresh the
world and in addition we further aim to create value and make a difference by
making our environment a cleaner and better place to live f or our future
generations.

OUR VISION
Our Company vision as was established by the founder of our
Group remains to provide the people that work in the group, beit the owners or
managers a great place to work where people are inspired to be the best they can
be and work with quality brands and Partners to maximize profit and productivity.

4.3.2: MANAGEMENT
Mr. Nirmal Singh Kandhari, Group Chairman has been a pioneer
figureinIndian

soft drink industry. He was instrumental in establishing Kandhari

Group as a soft drink manufacturing giant with a number of bottling units in

Northern India.

Mr. Jaspal Singh Kandhari, Managing Director, has been steering the
Group to new heights by redefining business strategy of the family business.
Mr.Jaspal Kandhari is Mr. Nirmal Singh Kandhari's younger brother .

Mr.Varinder Pal Singh Kandhari, Executive Director looks after the day to
day operations of the group. He is the son of Mr. Nirmal Singh.

4.3.3: HUMAN RESOURCE

The Kandhari Group has more than 3000+ employees , which include
around 300 professionals with various skill set and professional competence in the
various
industries they are handling. The Group has different project execution ,

maintenance teams f or different application areas in Information Technology

Industry.

4.3.4

: KANDHARI BEVERAGES PVT. LTD.

Kandhari Beverages Pvt. Ltd, Nabipur, Punjab and Baddi,Himachal Pradesh

The Company is engaged in the business

distribution
of
of

manufacturing, marketing and

aerated water under franchise agreement with

the Coca-Cola Company, USA. The Company has two mega greenfield bottling
plants for filling soft drinks located at Village Nabipur , District Fatehagarh Sahib
(Punjab) and Village Katha, Baddi , District Solan (HP). Present gross turnover of
the company is approx Rs. 190.00 Crores. The company has also entered the
power sector by setting up a 6.25 MVV VVind Mill project having 5 units in the State
of Maharashtra.

4.3.5

: ENRICH AGRO FOOD PRODUCTS PVT. LTD.

Enrich Agro Food Products Pvt.Ltd., Gurgaon,Haryana

The Company is an ISO 9001; ISO 14000 ISO 22000 certified unit engaged in the
business of manufacturing & marketing of aerated water under franchise
agreement with the Coca-Cola Company , USA. The most modern and fully
automated bottling
plant with a capacity of 1550 Bottles Per Minute is located at Gurgaon and is
catering

to prime areas in South Delhi and the towns of Faridabad and Gurgaon.

Present gross turnover of the company is approx. Rs. 100.00 Crores.

4.3.6

: GROWTH RECORD
From a very humble beginningin 1967 , today the Group tumover

aggregates to Rs. 800 Crore approx. The Group provides gainf ul employment
to about 3000+ strong workf orce.
The Group companies are f ully conscious of their socio- economic
responsibilities and have taken up a series of community development programs

especially the

funding & setting up of Rain harvesting projects to conserve the

scarce natural resource i.e. water. A number of such projects have been financed by
Group

companies in Udyog Vihar, Gurgaon; DLF Gurgaon & Faridabad in Haryana as also
some areas of Punjab. The foremost achievement of the Groupis the strict
adherence to system oriented quality production along with financial discipline,
leading to
consistentlyincreasing sales graph and an unblemished track record of dealings
with Fis/banks. Although sof t drink business still remains core activity of the
Group, yet sensing increased focus on industrial activity in India, the Group has
ventured out into other infrastructural projects of primeimportance like Power &
Energy generation from non-conventional resources and mining.

4.4: Organisational
Structure

Region Vice
President:
AGM/AOD

Ch ef'
Execut:
ve
Officer

Vice President
SUpply Chain

Ch e#
Finance
Officer
Hun
Resourc
e

Director

Unit 1
AGM/
AOD
Unit 2

AGM/AOD
Unit 3

AGM/AOD
Unit4

Reg on
Finance

Reg on

Hunaan

Resource

Reg on
CustonM!-r
Serv ce

Region

Ext:e..rna
I

Vice President
BSG

Affairs

Region L

Reg on Cld
Drink
1

Regional
Vice

Reg on BSG

President
(North)

Regional
Vice

President
(Central)

Region
Direct.or/
Manager Market

Exec:::ution

ORGANIZATION STRUCTURE
IN COCA-COLA, /NIDA

Region capabil ty
Management

Region Channel

Vice President
Sales
SGA Manager

Manager

Market Research Executive

Market ng
Manager

CEO

Genera
l
Manage
r

RED Head

Deputy GM

Astt Sales
Manager

Sr.Sales
Executiv
e

Sales
Supervisors

Team Leaders

Market
developers

Salesman

ORGANIZATION STRUCTURE IN KANDHARI BVG PVT LTD.

4.5: Manufacturing
The Company has two mega greenf ield bottling plants for filling soft drinks
located at Village Nabipur. District Fatehagarh Sahib (Punjab) and Village Katha,
Baddi, District Solan (HP) _

Manufacturing Process
Water

ConoentraLe
Sand Activa:ted
Filter
Carbon
Fi 1.er

002

From TCCC

DepaJletizer

Inspection

Washer

Inspection

Processing Production
Soft drink bottling or manufacturing involves five major processes,
each withits own safety issues that must be evaluated and controlled:
1_ Treating water_
2_

Compounding ingredients_

3_ Carbonating product_
4 _ Filling product_
5_ Packaging_

The production of soft drink begins with the preparation or "batching.. of thick.
high-solid syrup. This syrup is made in a stainless steel tank by the blending of a
flavored concrete containing various artificial and natural f lavours (the concentrate
is manufactured by and purchased from the parent company by theindividual
bottlers), sodium benzoate (preservative).sugar . and treated water. This syrup is
checked by qual ty control for conformance to established company standards and
then pumped to the proportioner in the filling area. At the proportioner,the syrup
and treated water pass through pre-set orifices at a constant rate of flow and are
blended at a ratio of approximately 1 part syrup to 5 parts of treated water. The
product is then pumped to the chiller/carbonator to produce the final soft drink of
the proper carbonation and fed to the can or bottle filler. During the carbonating
process the soft drinkis chilled to approximately 2-5C to prevent foami ng during
filing process.

Son drink canning line shovving filling operations

Returnable bottles to be filled are usually hand fed by the case onto a
conveyer which carries the cases of empty bottles to uncaser . The uncaser
removes the bottles from the cases and places them onto the empty bottle
oonveyer. From the uncaser . the conveyor carries the bottles to the bottle

washer where they are immersed in a 3 -

5/o hot caustic solution for a specified time period and rinsed with fresh water prior
to their discharge from the bottle washer_ Prior to entering the filler, the bottles are
inspected either visually by employees or electronically by a light scanner to insure
no foreign objects or debris isleft in the bottle_ Non-returnable bottles and cans
pass through a rinser which consists of a series of cold water spray_ These sprays
remove
loose dust and debris from inside and outside of the containers_

Eight-packs of 2-litre soft drink plastic bottles on the ""ay to an automatic

palletizer

The
conveyed

individual
to

the

bottles

are

capper/closure

then

filled,

machine

discharged

where

crimp

from
cap

the

or

filler,

and

twist-off

type

closure is applied_ The containers are then coded an then passed through the
bottle warmer_ The warm
water sprays inside the warmer to bring the temperature of the product to
approximate room temperature _ The purpose of the warmer is to avoid excessive
condensation which would form on the container's exteriorif they were allowed to
gradually warm to room temperature_ Any condensation on the container's exterior
would cause problems for the rest of the packaging involved,including label
application and fiber carton packaging_

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w
house
Plant
ware
Dis trib
utare
on house
Routes to

Retail Shelf

Regional depot
Regional
depot house of Himachal

Pradesh.

After the bottles are discharged from the warmer they are conveyed to the labeler

house of Punjab and Haryana.

and then to the case packer where the filled bottles are re-packaged into cases. The
cases of product travel to the palletiser which automatically stacks the cases on a
pallet for storage and shipping.

4.5 : Business Plan model at KBL

Let uslook at the sequential system of the distr ibution network r ght f rom the
beginning.

Concentrate / syrup from CC I

Na bipur plant

Ba
ddi
plant

Imports of canisters

l
Distribution Routes to Retail

..

Cons ume r

Shelf

4.6 :

Distribution Network
KBPL has a wide and well managed network of salesmen appointed f

or taking up the responsibility ofdistribution of products to diverse parts of the cities_

The

distribution

channels

are

constructed

in

such

way

that

the

demand

of

customers is
f ulfilled at the right place and the right time when it is needed by
them_ A typical distribution chain at KBPL would be:

N abi pu r
m anuf actu
ring pla nt

Consumer

Piarrt Ware house

Depot Warehouse
Chandigarh (CBC)

Retail She lf

Retail Stock

The customers of the Company are divided into different categori es and different
routes , and every salesman is assigned to one particular route, which is to be
followed by him on a dai y 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_

4.6.1

: Dist:ribut:io:n Rout:es

The various routes formulated by KBPL for distribut ion of products are as f ollows:

Key Accounts: The

large

chunk

organizations

of

customers in this category collectively

the total

that

buy

sales

of

large

quantities

the Company_
of

It

basically

product

in

contribute a
consists
one

of

single

transaction_ The Company provides goods to these customers on credit,

payments being made by them after a certain period of time Le_ 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 _

Examp es: 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 Le.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 consumption
period
is not taken into consideration in this particular route_

4.

6.2 : Dist:ribut:ion Syst:em

The system adopted by the Chandigarh Bottling Company (CBC) to

distribute its products in the city is, direct on-spot del very on on-spot demand
by the retail outletThe

salesman

hired

by the

company

is

accompanied

by

an

assistant

and

Market Developer (MD)_ They carry all the sku's in the goods carrying truck and are
assigned a specific route, on which they have to deliver all the products to all the
retail outlets that falls along that route, and deliver as per the demand on-spot and
get paid in cash (exceptions are there)_

Direct distribution: In direct distribution, the bottl ng 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
not
t

distribution:

part

he

In

indirect

distribut

of the Coca-Cola system

distribution

elements

(SaJes,

del

on, an

organization

has control on
very

which

one or

,merchandising

is

more of

and

local

account management)

Merchandising: Merchandising means communication with the consumer

at the

point

of

purchase

to

convey

product

benefit, value

and

Qual ty_

Sales people and del very personnel both have this responsibility_ In certain
locations

speciaJ

teams

who

go

into

business

locations

to

specifically

merchandise our products_

4.

6.3: Depart:men involved in t:he Dist:ribution process

The Distribution process mainly consists of three departments:

Distribution

Department:

distribut

network,

ion

It

appoints

processes

distributors

approved

sale

and

orders

establishes
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

collections from distributors,

from

dist ributors,

obtains

policy

periodicaJly
balance

followed

by

the

firm,

reconciles outstanding

confirmation

from

records
balances

distributors

and

follows up outstanding baJances_

Shipping

or

Warehousing

approved by order,

Department:

It

dispatches

goods

ensures that stocks are dispatched on a

as

per

FIFO basis,

ensures physical control over load out area and updates warehouse stock
records in a timely manner _

4.7

: SWOT Analysis of KBL

4_ 7."1 : Strengths
DISTRIBUTION
distribution

NETWORK:

network.

The

The

network

Company
is formed

has

on the

strong
basis of

and

reliable

the

time of

consumption and the amount of sales yielded by a particular customer in

one transaction_ It has a distribution network consisting of
efficient

salesmen,

26,000

different

modes of

distribution, from

retail

carrying

task

of 10- tonne

outlets_

trucks

The

distribution

a number of
fleet

contracted transportation

to

open-bay

three

includes

for

wheelers

goods

that

can

navigate through na....-ow alleyways of Indian cities and trademarked three

-wheelers.

STRONG
Company

BRANDS:
have

The

strong

products
brand

recognize the brands marketed

produced

image.

by

the

and

People

Company.

marketed

all

around

Strong

by

the

brand

the

world
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
Coca-Cola has

by

people

all

over

the world.

been named the world's top brand for a fourth consecutive

year in a survey by consultancy

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

LOW

COST

distribution

OF

systems

OPERATIONS:
are

very

The

efficient

production,

due

to

marketing

forward

planning

and
and

maintenance of consistency of operations which minimizes wastage of both

time and resources
leads to lowering of costs.

4.7

_ 2: W'eaknesses

LOW

EXPORT

LEVELS:

The

brands

produced

by

the

company

are

brands produced worldwide thereby making the export levels very low . Over
that even domestic
exists

demands are sometimes go unfulfilled_ In India, there

a major controversy

chemicals

in

bottled

concerning

pesticides

and

other

harmful

products

including

Coca-Cola_

Environment (CSE), a

aerated waters produced by

multinational

In

2003,

the

Centre

for

Science

and

non-governmental organization in New Delhi, said

giants

soft drinks manufacturers

PepsiCo

and

Coca-Cola,

in India, including
contained

toxins

including
lindane,

DDT,

malathion and chlorpy.-ifos- pest icides that can

contribute to

cancer and a breakdown of the immune system_ Therefore , people abroad,

are apprehensive about Coca-Cola products from India_

IMPORT FROM OTHER

packaging's
like

from

other

MANUFACTURERS: Import of
manufacturers

ads

cost

to

few
the

particular
business,

importing of cans from Pune and water from Delhi etc_ But this problem will
be soon removed with the establishment of new bottling line in Saha_

4_ 7_ 3: Oppor tunities

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_

HIGHER INCOME AMONG PEOPLE: Development of India as a whole

has

lead

increase
power

of

to

an

increase

in

the

in disposable income_
buying goods

of

per

capita

income

thereby

causing

an

Unlike o den times, people now have the

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.

4-

7- 4 : Threats

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

has increased over the years and a maj ority 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 manuf actured
within the country .it could pose a threat to the

Indian beverage industry

as a whole in turn affecting the sales of the Company.

SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it

is not without
the urban

its problems: Low

dependence on the vagaries

to

per capita disposable incomes that is ha f

disposable income; large number

harvests

and

festivals

of daily

wage earners.

acute

of the monsoon; seasonal consumption linked

and

special

occasions;

poor

roads

power

problems; and
inaccessibility

to

conventional advertising media.All these

problems

lead to a slowdown in the demand for the company's products.

might

4.8

: Products and Packaging Details

Though

the

Coca-Cola

including beverages, tea

Company

owns

the

innovation

of

and coffee, fresh juices, packaged water

3,300

drinks

and

energy

drinks but, all of them are not dominant at every place, may be due to cultural,
geographic,

demographic,

production

and

demand

limitations_

Beverages Pvt_ Ltd_ In association with The Coca-Cola Company

the f ollowing mentioned brands and in mentioned packagings_

Kandhari

manufactures


The

world's

recognizable

open happiness ..

-.-----

;..

word

te

drink.

across

world's

world

after

most
OK.

heritage . From a humble beginning in 1886,its

--

The

the

.
.

,I

favour

- :-,.;- "' ...

............

-- ---

.. .

valuable

brand.

Coca-Cola

;.... "

has

The

most

remarkable

now the f lagship brand of the

largest manufacturer, marketer and distributor of non-alcoholic beverages in the

world.
Coca-Cola

returned

enthralled

to

consumers

India

in

in

India

1992
by

and

over

connecting

the

with

past

fourteen

passions

of

years

India-

has

cricket,

movies, music and food. Coca-Cola has been very strongly associated with cricket,
sponsoring the world cup in 1996 and various other tournaments , including the
Coca-Cola Cup in Sharjah in the late 90's . Coca-Cola's advertising campaigns .Jo
Chaho

Ho .Jaye

and Life Ho To Aisi were

very

popular

and

had entered

the

youth's vocabulary . In 2002, Coca-Cola

launched

its iconic

campaign

"Thanda

Matlab

Coca-Cola" which

sky-rocketed

the brand to make it India's favourite soft-drink brand. In 2003 , Coke was made
available for just Rs.5 across the country and this pricing initiative together with
enhanced distribution ensured that all brands in the portfolio grew exponentially.
Coca-Cola
Karishma

had

signed

Kapoor

on

various

Cricketer

celebrities

such

as

including

Srinath,

celebrities like Vijay in the

past

and

ambassador

Amir

Khan.

Cil...A.SS
200

ml

is
PET

mt

C.A.N

1000

FOUNTAJN

500 ml . 1 S L.
,..

2 L. 2 25 L.

330 ml

Vanous S1:zes

stars

such

Ganguly,
today ,

300

movie

Sourav

its

"" '

(
"

- .._

'

't

.,

brand

--

"' ,;
-I

as

southern

.;-

..

_, - ;.-._;, ...

/
- ,

J .....7;,....".'
_

Strong Gola Taste, Macho Personality _ Thums Up is a leading sparkling soft drink
and

most trusted brand in

India_

Originally

introduced in

1977,Thums

Up was

acquired by The Coca-Gola Company in 1993_

Thums Up is known for its strong, fi=y taste and its confident , mature and
uniquely masculine attitude_ This brand clearly seeks to separate the men from
boys_

VVorldwide Spriteis ranked as the No_4 soft drink & is sold in more than
190 countries_ In India, Sprite was launched in the year

1999 & today

it has

grown to be one of the fastest growing soft drinks,leading the Clear lime category_
Today Sprite is perceived as a youth icon_ VVhy? VVith a strong appeal to the
youth, Sprite has stood for str ight forward and honest attitude_ Its clear crisp
refreshing taste encourages the today's youth to trust their instincts, influence
them to be true to who they are and to obey their thirst_

GLASS

PET

CAN

Internationally, Fanta

the

'orange' drink

of The

seen as one of the favourite drinks since 1940's_

the

year 1993. Over the years

Coca-Cola Company , is

Fanta entered Indian market in

Fanta has occupied a strong market place

and

identified as 'The Fun Catalyst'_

Perceived as a fun youth brand, Fanta stands for its vibrant color , tempting taste
and tingling bubbles that not just upl fts feelings but also helps free spirit thus
encouraging one to indulge in the moment_ This positive imagery is associated
with happy,cheerful and special time with friends .
PET

GLASS

200

300

ml

500 rnl.

2 L

ml

Lime

'n'

its

promise

Limca

can

CAN

FOUNTAIN

330 mt

Vanous S1ze-s

cast

tangy

from 'Nimbu' -+- 'Jaisa' hence

of refreshment and has been the

consumers for
the

5 L

2 25 L

Lemoni

anywhere. Derived

3 decades_

No .1 Sparkling

Born in

refreshing

spell

on

anyone,

LimeSa, Limca has lived

original thirst choice

up to

of millions of

1971, Limca has remained unchallenged as

Drinkin the Cloudy lemon Segment. The success formula is the sharp fizz and
lemoni bite

combined

with

the single

minded

proposition

of

the

brand

as

the

provider of uFreshness".
Limcas Freshnessis like no other - 'lime n lemoni' Limca refreshness.
reenergizes, rejunevates not just your body but also your emotions.The new
Limca campaign takes the first step towards taking the earlier

ater-like

freshness" idea to sn emotional platform relevant for the young-adult, who

pursue success and achievement , but still want f reshness to rejuvenate the fun
, energy, excitement and romance in their lives. uFreshness of Emotions" idea
stemmed from the insight about our consumer- the desire to rejuvenate her/his
emotions which are constantly being dulled in routine pursuit of success.

GLASS

PT

CAN

SO<lml.
1.:ZSltr, 1.5ltr, 2ltr

ZOO ml, 100 ml

Minute Maid- A
brand

goes

developed

as

far

orange

310 ml

62 year

as
juice

back

FOUNTAIN

:-'

Various 51'.Zes

success story. The history of the Minute Maid

as

powder.

1945
The

when

the

company

Florida

Foods

developed

Corporation

process

that

eliminates 80o/o of the water in orange juice, forming a frozen concentrate that
when reconstituted created orange juice. They branded it Minute Maid, a name
connoti ng the convenience and the ease of preparation(in a minute). Minute
Maid thus moved to the f irst ever orange juice from concentrate.

Mango_

It is a fruit associated with good times like

the king of fru ts, mangoes are to mango lovers what

no other_ Aptly called

romance is to a Casanova_

Now
imagine this delicious fruit, bottled_ This is what Maaza all about _ Introduced in the
late 1970's, Maaza has today

come o

symbolize the

very

spirit

of

mangoes .

Universally
loved for its taste , colour,thickness and wholesome properties, Maaza is the
mango lover's first choice.
Maaza's universal appeal was responsible for the brand being recognized
as a drink that

provides

'wholesome family fun'. Even today

people

hum

the

memorable lines-'taaza mango.maaza mango' and 'botal main aam maaza hai
naam'.
Maaza

was

real swed

to

be about

the

ultimate

mango

indulgence.

And

this

was because; only the freshest, juiciest Alphonso mangoes go into a Maaza.
This thought found voice creativity in the idea of 'Tempting the mango expert'.
This idea struck a chord with everyone and found a universal appeal. It was to
nobody's surprise then that Maaza soon became the most loved beverage rand in
India.
Today maaza has come a long way to stand as the ideal way to satisfy one's
craving for mangoes. Aptly framed , the line MMaaza lao, aam ki pyaas bujhaosymbol zes the very essence of mangoes that has been captured in a bottle.

It provides consumers the most authentic experience of rich,juicy mangoes to

satisfy their thirst for mangoes- anytime, anywhere!

PET 1 2

r.tr.

--------

PET 600ml

----

Rs.45

Rs 2S

2SO ml RG8

PackM Maaza 2oom1

-

Rs.1D

---

Rs ,5

Boond Boond
Main Vishwaas !....

VVater . a thirst quencher that refreshes. a life giving force that washes
away all the toxins away. A ritual purifier that cleanses . purifies, transforms .
VVater . the most basic need of life,the very substance of ife, a celebration of lfe
itself. The importance
such

as

India

where

of water can never be understood. Particularly in a nation

water

governs

the

lives

of

millions,

beit

as

part

of

everyday rituals or as the monsoon which gives life to the sub-continent.

Kinley water understands the importance and value of this life

giving force. Kinley

water thus promises water that is as pure as it is meant to be. VVater you can trust
to be truly

safe

the Coca-Cola

and pure.
company.

aling with the latest

Kinley water

That

technology

is
to

comes with the

why we introduced
ensure

assurance of safety

Kinley

with

from

reverse-osmosis

the purity of our product. That's why

go through rigorous testing procedure at each and every location where Kinley

we
is

produced. Because we believe that right to pure, safe drinking water is fundamental.
A universal need,that cannot be left to chance.

4.9

9: Competitors to KBL
The competitors to the products of the company mainly lie in the non-

alcohol c beverage industry consisting of juices and sof t drinks. The key
competitors in the
industry are as follows:

PEPSICO:

archrival ,

The

PepsiCo

the Coca-Cola Company

challenge,

never

to

ends for

keep

the

up

carbonated soft-drink maker. The company's soft drinks include

Mountain

Dew,

and

Slice.

Colais

not

the

company's

with

VVorld's #

only

2,

Pepsi,

beverage

PepsiCo sells 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/o out of

which 60.8/o is held by Coca-

Cola and the rest belongs to Pepsi.

I G,=4- s n _

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

asit 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

andit is

healthier

when

compared

to

fi=

drinks. The

flavored milk products also have become substitutes to the products of the
company due to growing health awareness among people.

--

$c=-=
- c::4- E:'.........-

: Dabur in India, is one of the most trusted brands asit 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 ReaJ Juice whichis packaged fresh fru t juice.
These

products give a strong competition

to Maaza and

the

latest product

Minute Maid Pulpy Orange.

,Godrej and Bisleri: On local levels these three pose a great threat to
our

products. Parle's

Frooti, Godrej's

Jumpin, and

Bisleri's

VVater and Taaza maaza are hampering the sales of Coca-Cola's products
on the margins.

The

competitors to

KBL are those who

any other franchise of our

competitors.

are

competitors

RivaJ Pepsi's

to

Coca-Cola, and

not

biggest bottler in Punjab is

the Chandigarh-based Dhillon Kool Drinks and Beverages Ltd.

Chapter 5: FINAN CIAL ANALYSIS OF C OCA-C OLA

.l:..t.t?.. t..1. .MQ f.l

.l?. .t. .!1.t.?..mti::

Latest Full Context Quarter Ending Date

(2010/03)

Gross Profit Margin

Pre-Tax Profit Margin

Interest Coverage

68.So/o

29.7%

27.0

Quick Ratio

Receivables

0.9

Asset Turnover

Turnover

0.7

9.2

Current Ratio

1.3

Return

on

Invested Capital

24.2/o

Most Recent Data

Total Debt/ Equity

0.47

Return on Assets

14.9%

5-Year

Return

Averages
Return on

Gross Profit Margin

68.5/o

Net Profit Margin

(Total Operations)

20.6o/o

5-Year Avg . P/ E

12 Month Normalized

Ratio

P/ E Ratio

20.7

16.6

Equity P/ E Ratio
Current

16.9

on

Invested
Capital

25.1/o
5-Year High P/
E Ratio

26.3

I NDIA

160

160
140
120
100
80

60
40
20
0

Financial Highlights
First

quarter

1998
2009

2010

increased 1/o

on

reported
a

net

revenues

comparable

currency

increased
neutral

5/o.

Net

revenues

basis, reflecting

2/o

impact due to the

deconsolidation
CHINA

of

certain

entities
RUSSIA

required

by

change
MEXICO

in

accounting

guidance, as well as geographic mix_

First

quarter

2010

reported

operating

income

increased

17/o,

and

comparable currency neutral operating incomeincreased 9/.,_ This was driven

by

continued

productivity

strong

initiatives

focus
as

well

on

cost

as

management

favorable

timing

and
of

the

selling ,

leveraging
general

of

and

administrative expenses.
Cash from operations in the quarter increased 52/o to $1.3 billion_ There were
no share repurchases

during the

first

quarter

due

to the

pending Coca-Cola

Enterprises (CCE) transaction_

During

the

quarter,

the

Company

dividend increase, raising the

announced

quarterly

its

48th

dividend 7/o from

consecutive
41

cents to

annual

44 cents

per cornrnon share_ This is equivalent to an annual dividend of $1.76 per share,
up from $1.64 per share in 2009.
The PER CAPITA CONSUMPTION of Coca-Cola Beverage Products.
Figures are in Lit:res

Year

I
If
f oos
009

Earnings

1$6.906 billion

Rev enue Gro vv t:h

[$5.807 billion

007

f 006

1$5.981 billion
Year
1$5.080 billion
12009
1

2008

II

Ear n ingsGro vv t:h

Revenue

1$30.990 billion
1$31.944

billion

12007

F28.857 billion

12006

F24.088 billion

Over the past 3 years, Coca Cola has had

a respectable 8.7/o in annual revenue
growth.
Coke has enjoyed nearly 11/o annual
earnings growth over the past three years.
The most recent year , from 2008 to 2009,
saw a 1go/o increase. Analysts predict

Cash Flovv Gr ovv t:h

11.4/o EPS growth in 2010 and 9.6/o EPS

growth in 2011.

Year

12009
!2008
12007
12006

Cash Flow
D iv id
en d
Gro vv
t:h

f 8.186 billion
7.571 billion
f 7.150 billion
f 5.957 billion

Annual
ly,
that's a
cash
flow
growth
rate

of

12009
12008
2007

Dividend

f 1.64
f 1.52

Yield

f 3.28/o
F - 04/o

f 1.36

-50/o

f 1.24

-80/o

12006

over

11/o.
Coke
has
grown
stock
dividen
ds

Year

by

increase,from 2009 to 2010 , was a 7.3/o

increase.

The

payout

ratio is a

moderate

56/o, so
o
v
e
r

the
dividend
is safe for
a while
and has

t
h
e

room to
grow.The
company
has also

p
a
s
t

been
repurchas
ing
shares
annually.

In 2009,

they

repurchas

ed $1.5

billion
worth of

y
e
a
r
s
.

shares.

Chapter 6 : STRATEGI C MANAGEMENT BY

CO CA- COLA

6.1

: Strategies

POSITIONING STRATEGY
It means that you try to give image to your productin the mind of the customers_
To give a true and positive picture of t he product is the best positioning_ The
company should promote its good points or comparative advantage whichit has
over its competitor _

DIFFERENT/A TION STRA TEGY

In order to serve your target market you introduce diff erent things to your
product so that your product can be dif ferentiated from other products.
Basis of Differentiation There ar e many bases on which a product can be
differentiated but Coke has differentiated its product on the following base:
Product Differentiation- Coke differentiate its product
fromits competitors on the basis of brand, quality and taste.

Image Differentiation- Logo is used for image differentiation_ Logo

is what establishes a brand name in the consumer mind_ Itis the
brands
identification , signature and image_ Coca-Cola has kept on
changingits logo f rom time to time_

PROMOTION STRA TEGIES

Price Strategy Trade Promotion:
Coca-Cola Company gives incentives to middle men or retailers in a way that they
offer them free samples and free empty bottles,by this these retailers and middle

man push their product in the market. And that's why Coca-Cola seen more in the
markeL

And they have a good sale in the market because according to the expert which
product seen more in the market that sells more_ "Seen as sold"
They do agreements with a shop keepers and stores to exclusive sale in those
stores_ These stores are called as KEY accounts in their local language_
And coke also invest heavy budget on these stores and offers them free samples
and free bottles and some time cash incent ves_

Advertisement Strategies :
Coca-Cola Company use different mediums for advertisement_

Print media : They often use print media for advertisement_ They have a

separate department for print media_

TV

commercial

As

everybody

know that

TV

is

a most

common entertaining

medium so TV commercials is one of the most attractive way of doing advertisement_

So Coca Cola Company does regular TV commercials on different channels_

Billboards and holding;

6-2: Our Competitive strategies

The Coca-Cola Company is one of t he largest. most successf ul and most
widely recognized corporations in existence_ Coca-Cola is a dominating force in
the beverage industry and sets a very high standard of competition_ Research
shows that
its trademark is recognized by over 94/o of the worl d's population_ There are
many f actors contributing to Coca-Cola's success. however . we believe that their
key success factors are Marketing,Innovation, and Global zation_

Market ing:
Coca-Cola is seen as one of the founding fathers of the modern day
marketing modeL They were among the pioneers of advertising techniques and

styles used to capture an audience_ They were also one of the first companies
to offer a gimmick

with their product,this being a mini yo-yo _ It was around 1900

when Coca-Cola began

presenting their signature drink as a delicious and refreshing formula_ This slogan
has been repeated for over the last 100 years selling Coke all over the world.
Throughits
intense marketing campaigns ,Coke has developed an image that is reflected in
what we think of when we buy Coke and what we associate with drinking Coke.
This image has been subconsciously installed in our brain by the advertising
campaigns that show Coca-Cola associated with good times.

Innovation:
Coca-Cola has been able to survive and grow in an ever-changing market
because ofits ability to systematically innovate and deliver new products. In the
late

90s the company,typically showi ng earnings growth of 15-20/o per year

,turned in

three straight years of falling profits.It was apparent that the market

was changing

and in order to keep up with these changes, Coca-Cola had to

move from a single core product to a total beverage company_ This was a major
change because their past success was base on having one successful core
product. Coca-Cola began to employ a strategy referred to as "play to win
innovation_ " The company began operating in a decentralized environment that
was unfeasible in previous years . Now Coca- Cola offers nearly 400 diff erent
products in and is still dominating the beverage
industry _ This is made possible by the company's ability to innovate and adapt to
changing markets_

Globalization:
Today's big business takes place on a global scale, and Coca-Cola is no
exception. Technology is continually changing business, and these constant
changes have been makingit more feasible and profitable for businesses to
expand their operations globally in order to serve all different types of diverse
markets around the world_ This global view is reflected in Coke's recent "I'd like to
teach the world to sing" commercial. Coca-Cola is taking advantage of the large
revenue opportunities made possible by participating in a global market and now
offers products in 200 countries around the world_

6.3: Industrial Environment and 5 Forces Model for Coca-Cola

Applying

Porter's

potential

attractiveness

forces
in

allows
terms

of

the

garnering

profitability

of

retrospective

the

company.

of

the

Analyzing

view

the

beverage industry will also allow a more accurate outlook onits potential.

6.4

: COCA-COLA COMPANY- THE SWOT ANALYSIS

The

Coca-Gola

Company

(Coca-Gola)

is

leading

manufacturer,

distributor and marketer of Non-alcohol c beverage concentrates and syrups,in the

world. Goca Gola has a strong brand name and brand portfol o. Business-VVeek

and Inter brand, a

branding Limca Common drink.. Fanta basically pref erred by Ladies and Kids.
Maaza is

branded for

defines for

mango lovers

be it

kid

woman

or

man.

Sprite

the straight attitude of today 's youth. Kinley Soda Mostly those who

consume lquor
Consultancy, recognize Coca-Cola as one of the leading brands in their
top 100 global brands ranking in 2008. The Business VVeek- Interbred valued
Coca-Cola at $67,000 millionin 2008. Coca-Cola ranks well ahead of its close
competitor Pepsi which has a ranking of
million;
allows

The

Company's

Coca-Cola

by intense

to

strong

brand

22 having a brand value of

value

penetrate markets.

facilitates

However, the

customer

$12,690

recall

and

company is threatened

competition which could have an adverse impact on the company's

market share.

SWOT Analysis
Strengths

Weaknesses

Internal
Popularity

VVord of mouth

well known
branding obvious recognized

A lot of finance
lack
ofpopularity of

customer loyalty
Coca-Cola's brands
and easily

Most unknown
and rarely seen result of low
profile
health issues

non existent advertising

International Trade

Threats
External health
changing
consc iousness attitude legalissues
Health ministers
competition (Pepsi)

or

many

Opportunities
successful
brands
many
pursue

its
advertise
products

less

buy out competition.

More Brand recognition

to
popular

Chapt:er 7: FUTUR E P LAN -A LO OK FRO M

PR ESE NT

As we look ahead to the year 2020, we see tremendous growth

opportunities for

our franchise

system

and for

the entire nonalcoholic

ready-to-

drink beverage
industry _ VVe

are

working

closely

with

our

bottling

partners

around

the

globe, leveraging our scale and the increased presence of our brands_ VVe remain
confident
in our ability to deliver against our strategies while laying the foundation for
consistent . profitable and sustainable long-term growth , inspired by our 2020
Vi sion in a growing
world of refreshment_ "
Maximise Company and bottler long-term
cash flow_

Attract , engage and retain the best talent_

V I S I O
N

Develop

and

deploy

the

world's

innovative and effective marketing_

Aggressively increase the value of our portfolio_

Think and

act like

an integrated

global enterprise while

intensifying our

local focus_ Become a critical part of our customer 's growth strategies_

Create competitive advantage by f ulfilling our Live Positively commitments.

Design and implement the most effective and efficient business system_

KBL's future plan is just to track ways to strengthen their position in the market
more f irmly and not only to strengthen old relations with a decade long known
retailers but also with the

evolving novice in the

improvement include, effective

planning

of

market.

distribution

Other

system

areas
and

of

acquiring

most

good

work

employees_

force

i_e_ strengthening

The short

breaking flaws

bond with

hard smart

and hard working

term goals, as always, include the effect ve removal of

between Coca-Cola and retailers_ The main vision of KBL is to

induce such a perfection in their market execution such that it converts its all outlets
to RED accounts i.e. all 26,000 outlets to

be under RED standards.

Chapter 8: THE PROJECT

8.1

Executive Summary

Coca-Cola, t he product that has given the world its best-known taste was
born in Atlanta, Georgia, on
leading

manufacturer,

May

marketer

8, 1886. Coca-Cola

Company is

and

non-alcoholic

distributor

of

the

world's

beverage

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

concentrates

distributors, fountain

and

retailers

introduced by John Syth

syrups

to

bottl

and fountain

ng

and

wholesalers.

canning

operators,

Coca-Cola

was

first

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 carryingit 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

otherwise, producing
theme

teamed

with

the

new

syrup,

whether

by

accident

or

a drink that was proclaimed "delicious and refreshing", a

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 t hat CocaCola became

the

world-famous

brand it is today. Coca-Cola was

the

leading

soft drink brand in India until 1977, when it lef t 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 madeits
re entry intoIndia through one of its largest bottler, KBL,the North Indian bottling

arm of

the Coca-Cola Company.

The main objective of this study lies in studying the ma.-ket of the SSD (sparkling
soft di-inks) bi-ands

by Coca-Cola

and

understanding the consumers'

perception

and opinion about the pi-oducts.with moi-e inclination towai-ds the study on mai-ket
of juices and Kinley water & soda. and the respective competitor's analysis_
This report gives an insight to the current scena.-io of our pi-oducts in Hotels,
Clubs, Hospitals and Govt. canteens segment. This would be a dii-ect attempt
to point out the flaws p.-evail ng this segment of ma.-ket and possibly the bettei- way
to overcome them through detai ed study of this segment, as is done in this pi-oject
i-eport_
This is an oppoi-tunity to peep into the psychogi-aphic status of the people woiking in this segment and pi-edict the possible way out of non-dominance in this
ma.-keL This i-eport vvill p.-ovide detailed info.-mation about pi-evailing ma.-ket
competition and thus prepai-e itself to meet the

ma.-ket challenge by making

adjustment

activity

inits

new

strategy

and

promotional

particularly

fo.-

the

Hospitality Segment .
The pi-oject begins with in-depth interview with the owner
ima.-y source. to extract the reality on ground
our distributor

and

'competitor's

know the psychogi-aphic

needs

position

and

ofou.-

of retail outlets , as pi-

level about 'retailer's psychology' as

strategy '.

consumers,

The

which

third
was

need

was

achieved

to
by

feedback/questionnaii-e pi-ocess among 50 to 80 youngstei-s_ The conclusion drawn

from

the quantitative and qual tative

ended feedbacks, are

(Q2)

analysis of

i-epresented in unde.-

and implications/suggestions_

the

tag

data via gi-aphs

of

gap

and open

analysis/gi-ievances

8.2

2: Objective of this Report

The main objective of this report is to evolve an increased change in the

Sales of Coca-Cola Brands in Hotels, Clubs, Hospitals and Govt. canteens.
The task would be mainly to graph out the psychology of the retailers who sell our
SSD brands, Juices, VVater and Soda.

The first and foremost task is toident f y the flaws in our service system
to t he retailers. which in turn hurts the sales of Coca- Cola products.
The next step involves identif ication of potential markets and recognition of
opportunities V\lhere the visibility and availability of our products can be
increased.

The only task left after identif ication of problems and opportunities is to
frame strategies which will eliminate the flaws and take advantage of the
opportunities.

8.3

3: Critical Literature Review

There has been a lot of fuss regarding the carbonated soft drinks and

pesticide issues , despite all the demagnification the slowdown in the business is
not evident rather after a slowdown in 2007 it has gone drastically high in the
current scenario.
The most important fact to be mentioned here that the report
market segment of

concentrates on the

Hotels. Clubs. Hospitals and Eating & Drinking points in Govt.

offices.
Until now there is no such effort evident from references' which have looked upon
the hospital ty segment in the domestic market of Chandigarh. The work clearly
shows a
lot of gap into this segment.

8.4

: Research Methodology
In

order

to look

deeply

into

as

to

what is

the

positioning of

our products

in consumer's mind. a direct interaction is a method to come to a conclusive view_

The purpose of this report is to provide a roof-top view of

Retailer's perception
Consumer's
perception

Competitor's analysis

These three concepts INill frarne the "problern " accurately and as it is said that

'a

problern llVell c:le"Finec:I is ha/' solvec:/ '_

As retailers are KBL's first consumer and first stepinto the market and it is very
necessary to keep a strict watch on aJI the networks to these retail outlets_
So

the

direct

method

retailers.demanding both
throws

light

perception

not

and

only
a

adopted

was

qualitative

and

on

clear

retailer's

picture

of

to

do

in-depth

quantitative

perspective

but

competitor's

interview

data

from

also

position

on

of

the

them , which

the

against

consumer's
our

market

strategies.
Since more f ocus is on the market of juices, water and soda, soit can be said that
the major part was causal research for the above mentioned products. Moreover to
watch the accurate position of the competitors in the market, there was no better
source at ground level than these
to

retailers_

The questionnaire so designed was

extract

information from retailers about their view of discrepanciesin the system and what
our end-consumers react to our products and to our competitor's product.
Another

questionnaire

was

conducted

straight

on

with

our

end

consumers

to

analyse their perception about our products and their preferences with reasons.
So these two approaches provide a wide three-tier feedback

structure which will

help the organization to identify and broom away the flaws as nicely asit can_

Chapter 9: I NTE RPR ETATI O N AN D ANALYSI S

format

was

designed in which

was f ed, through direct interrogations

sales

book, so

that the

collected

would

segment

in

be

ninety-five

with

the

data could be verified

analysed

to

CHANDIGARH

'calculate'

only.

The

percent

retailer

the

format

of

and

quantitative

ref erences

appropriately. The
Current
and

Scenario

the

data

to their

database
in

database

the
are

so

target
in

the

Appendix1 at the end of report.

9.1 Data Interpretation

In

this

construed

to

section

the

evaluate

database

certain

so

f ar

parameters

collected

so

that

the

would

be

current

mathematically

scenario

can

be

inferred substanti ally.

KO- Coke, S- Shared account, PC- Pepsi Co , KS-Kinley Soda.

Abbreviations:

BL- Bisleri, AQ- Aquafina, KW- Kinley, LH- Lehar Soda.

Rgb- Returnable Glass Bottles, LC- Local Brand.
Vl/e would be calculating market share in terms of outlet captured for sales
and also in terms of consumption from all the possi le outlets. It would help us to
picture our

position

and that

of

our

competitor mainly Pepsi

Co and other local

brands hampering our sales by playing on margin basis.

Vl/e would be phrasing the market of juices and specially competitors to
Maaza,

Pulpy

Orange

and

Nimbu

f resh.

The

prevalent

market

of

Jumpin,

Frooti and local brands is a concern in the Hospital and canteen segment.
Many

more

are

of

concerns

would

be

looked

upon

and

analysed

statistically below. The data might partially vary to the latest of yesterday's data
because , "the consumption and sales scenario changes every day in the beverage
rnarket ".

Market: Share
Market: Share
PC Market Share Outlet
9.1.1
KO
Wise

Hospitals &

Canteens
PC

KO

PC - 10/o

KO 53.33/
o

S - 36.66/o

Hotels & Clubs

PC - 51.1/o

The

above

KO
40/o

graph

S - 8.9/o

shows

the

outlets

captured by Coca-Cola and Pepsi Co. and the

percent of outlets which are shared by both of the
beverage producing companies. In short the red
and blue area shows the

monopoly accounts of

Coke and Pepsi respectively.

Consumption Pattern
Consumption Pattern
Rgb
SOO ml Pet

9.1 2: Consumption of Beveragesin Form of Pack S

zes
2 It Pet
Tetra
Rgb
can
SOOml Pet 21t Pet

Hospitals &

Canteens

- canisters

Rgb-40./o

500ml-29.7/o

21t-14.8/o Cans-1.85/o

Tetra Pack- 9.26/o

Hotels & Clubs

Rgb-68.75/o 500ml-6.25/o

21t-20.8/o Cans-4.17/o

The figures show the percent of a particular packaging prevalent in both

the segment. In both the segment the highly consumed packaging of beverage
productsis

Rgb.

But

also

it

has

to

be

taken

into

notice

that

in

Hotels

with

consumption of more than 15 cases per day use largely the 21t packaging. Cans
are served when diet coke

Consumpt:ion Pattern
is into consumption mainly. The tetra packaging is widely needed to serve the
juice segment especially in the Hospital segment.
Tr opicana

Mango drink
9.1.3:Consumption
of Juice Brands
Real

Hospi tals & Canteen

Lemon drink

Tropicana-22.2/o

Mango drink- 33.3/o

ReaJ-25o/o

Lemon Drink-19.44/o

This figure shows the occupancy of market by different juices. Next we shall depict
the dominance in consumption of brands in their particular segment of juices .
Mango Drink

Consu mt:i on Pattern

The market is aJmost into a cut

throat situation with almost equal
consumption

rate

to

each,
Slice

Maaza

including local brands too.

Jumpin

Maaza still holds a

LC
Froot:i

good stand

due to consumption of its rgb in

large

scale

segment.

in

the

hospitaJ

The major threat to Maa.zais Frooti and the local mango drink by Bisleri. They
win
over the situation due to better margins which they provide to retai ers.

Lernon Drink
This

Consumption Pattern

segment

is

majorly

occupied by Nimbooz by ?
up, with its

Consumption Pattern

sku of

rgb, tetra

and pet. Nimbu Fresh is yet

not so strong in this segment

Nimbooz

due to availabil ty issues.

Nimbu Fresh
LMN
Tropicana
Maaza & Minute Maid

Though
,lemon

in

whole

drinks

do

market

not

hold

more than 11/o of market.

Real

Hotels & Clubs

Tropicana-34.6/o

Maaza & Minute Maid- 12.So/o

Real- 53.8/o

The Hosp tality segment is mainly captured by Real and Tropicana. The
main reason why this market is dominated by Realis because of its wide usein
Mocktails

9'
l I

l'.I>

l
I

due toits range of different juices and the same is for Tropicana. The only reason
why Real is more prevalent

because of its earliest

entry to the market which

established the preference in tastes to Mocktails. Mango drinks do not have any
placein here.
9 1 4:Consumption of Water Brands

Hospitals & Canteens

Consumption Pattern
AQ-15/o

BL & LC-45/o

AO
K\N
BL & LC

Hotels & Clubs

Consumption Pattern
AQ-34.8/o

KVV-46.6/o

BL & LC-18.18/o

AO
KVV
BL & LC

9'
l I

l'.I>

l
I

Despite more occupancy of Pepsi in hospitality segment the Kinley seems

to make a good consumption average , but has a big fight to the Bisleri and other
local brands which seems to

replace it

in even those

segments which

is

our

monopoly account_

91.5:Consumption of Soda Brands

Hotels & Clubs

Consumption Pattern
LH-53_1/o

KS-17_ 2/o

EQ/ LC-29/o

Soda marketis present in hospital ty segment and obviously not in hospital

and

canteens_

LH

Kinley
K S

Again

here

despite

Pepsi

prevalent

in

hospital

ty

segment

Soda stands as a strong brand as a choice of soda consumers_ Still the

EO/LC
threat
of local brand

is evident as Equal stands as a very good choice for low scale hotels becauseit
gives better margin fight_ Lehar and Equal holds a firm position in this market, but
somehow Kinley Soda stands as a brand of el te choice_

6
8
7

s
6
s
4

9.1.6: Visicooler
Upgrade

Hospitals & Canteens

PC
PC

KO

3
2
2

Hotels
& Clubs
KO

1
1

0
0

In this reading
4 easer
4 easer-

easer97easer
7 easer

13 easer
9 easer

Pepsi

15
easer placement
Fount:ai
n
SGA
in the
Fount:ain

13 easer

and

hotels

retailers
policies
made

to

market.

segment.

state
are

that

rigid.

place
The

visicoolers.

has

an

Also

the

feedback

Coca-Cola's
But

SGA

y-axis

upper hand in

market of hospital canteens

SGA

improvements
at

large

represents

from

have

scale
the

the

placement
been

into

number

the
of

Consumpt:ion Pattern

PC
9.1.7: Average
Consumption/Day
KO

Hospitals & Canteens

PC-21.050/c,

Hotels & Clubs

Consumpt:ion Pattern

\/V e see that even here, despite very good market occupancy in
hospitality
segment Coca-Cola still stands quite high against Pepsi. From this it
PC
can be clearly
KO

inferred that even an inch of step forward would help us take a long leap in
this segment.

12

10

9.1 8:Market Occupancy in Hotels Sector Wise

8
PC

KO
S

6
4

Though

there

are

hotels

in

almost

every

part

of Chandigarh, but

the

main cluster lies in these sectors. VVhile sector 35 and 22 consists of hotels which
are
Sector 43
the

10-12 years
while
Sectorold,
3S
upcoming

modernized

many
have
Sector
22
hospital

ty

been

reconstructed

segment

lies

in

to

sector

new
43.

ones
The

and

y-axis

represents the number of hotels.

These types

of

retail outlets

are primari y

dominated by

Pepsi, but

seen earlier , Coke still give a tough fight in terms of increased consumption.

as

30

25

9.2: End Consumer Questionnaire Analysis

20

This questionnaire was conducted amongst youngsters who are beverage

food freaks_ It was

15

rank

minor attempt to know their

our products against our competitors_

preferences

and how they

The questionnaire was

more focused

on Maaza, Minute Maid- Pulpy Orange & Nimbu Fresh and Kinley VVater ,
10

because these brands are struggling in the target market _

This is an attempt to relate the

16-18 19- 21

normal

preferences

of

consumers

mainly to

the hospital ty segment_ The questionnaire format isin the Appendix2_

a bove 21

92."'1 :Age Classification

The Questionnaire was

conducted among youngsters

mainly

in the age group of

16 years to 23 years _ The reason was to know the positioning of brands in youth's
mind_ This will

help us know

the new

age

preferences .

which would help us to

plan out the approach to modernized outlets in the target segment of hospitality _ The
questionnaire was conducted among 52 people_

30
25

9 2 2:Regular Consumption

20
15

Yes-61.5/o

10
5

No-38.5/o

The graph shows the part of sample size who are regular consumers of coke and
yes

who are not.

This projects that
the consumers ofno
coke are loyal to a great extent.
partially
few
Yes

No

92.3:Awareness of other brands of Coca-Cola

Y es-46.1/o

Partially- 11.5/o Few-21.2/o No-19.2/o

Though Coca-Cola stands as the world's most consumed and popular

beverage producing company. people are still unaware of brands which lie
under the roof of Coca-Cola.The graph shows the awareness frequency.

25
20
15

Packaging

9.2.4: Preferencein Mango

Drinks

Price
Brand Name

10

Taste

The

consumption

beverage market_

0
Frooti

of

Mango

Nationally

drinkis

one

of

the

most

Frooti, Maaza and Slice

vibratious
are

few

markets

of

the

in

oldest

Slice
Jumpin
Mr.Fresh
brands_
TheMaaza
graph depicts
the choice
of Maaza to be more than over other

brands_
9 2 5:Opi ion on Minute Maid Pu py Orange
40

35
30
Not

25

Good

2
0

Average

1S

Good

1
0

Very good

5
0
Have Tasted

Not Tasted

The graph depicts that many among the sample size have tasted the product and
maximum of them found it very good and good_ The orange drink market is not so
flourished as that of mango drink market, so probably pulpy orange is also one of its
own kind in the market_

35
25

9.2.6: Opinion on Minute MaidNimbu Fresh

30

20

The graph depicts many out of the sample sizeNot:

have
not tasted the product yet.
Good

25

Packag ng

Price
And the one who have tasted, maximum found
it either very good or average.

15
10
20

Brand name
Good
Tast:e
Average
Very Good

5
15
0
10

92.7: Preferencein Water Brands

Bisleri

Have
Aquafina
Tast:ed

Kinley

Fresh n
Cool

Himalaya
Not:Tast:ed

Qua

The graph clearly projects the strong branding of Bisleri in the domestic market
of Chandigarh. Next to it stands Kinley,largely preferred because of brand
name. it would a challenging task to have a share fight with Bisleri.

35
30

25

9.2 8: Coke and Consumer

20

15

Gategory1 - consumers who 'can't live without coke'.

10

Gategory2
5
0

consumers who 'can survive if nothing better is

Category 1

Category 2

Category 3

available'. Gategory3 - consumers to whom'it hardly makes a

difference '.
The graph depicts that to maximum in sample size productloyality hardly
matters while to some, they are simply loyal about it , such that their feedback
is positive in every aspect.

The questionnaire conducted is of significance, in order that the feedback

for the Minute Maid gives a quite clear picture about its current image. The
result for
Kinley was as expected, because Bisleri is the most prominent in the domestic
market of Chandigarh.

9.3: Some Specific Observations

Certain observations about the segments been scrutinized is necessary be pointed out
at this juncture_

Hospitals
Our consumers in hospitals can never be rated asloyalcustomers because the volume
of

people

consuming

the

products

is

highly

variable_

Therefore,

the

visibility

through availability works better inthis segment_

And that of in

Govt_ Canteens are constant ,but loyal ty factor is immeasurable because

as the job is of fixed time the choice of beverage being consumed depends on quite a
few factors which are immeasurable_
Ther efore in both the cases visibility plays an important role_

Hotels
The

consumer

characteristic

shows

high level

of

inflexibil ty_

In

this

segment, the

consumers have firm held preferences or pr ority over brand due to the affluent nature
of consumers_

Especially in the bar

or lounge

segment, the taste factor or even the

recipe factor is a big parameter of consideration_

lexible nature_

While the Club segment is still of f

9.4

4: Q2 Analysis
In this section the view on the output of analysis will be mentioned along

with the areas of concern and potentialities_

9.4.1

:Trend Analysis
The current trends below states the present situation in the target segment

specifying on some products_

A)

Hospitals and Canteens

Coca-Cola's csd products have high sales due to high

demand_ Maaza share is being eaten up by locaJ brands
providing high margin to retailers_

Tetra packs are in quite demand in this segment

Kinley share is aJso eaten up by local ones due to the
reason of margin and also Bisleri being proffered due to
brand name establishment_

B)

Hotels and Clubs

Mango juices are not in demand for mocktails_

Minute Maid Nimbu Fresh still has not entered the lounges or
bars_

Csd's can be easily pushed because of a bartender's first

choice in bars_

Pulpy Orange cannot be promoted in bars because of pulp_

94.2

:Gap Analysis
It is mentionable here that the

removing

minor flaws

are very important to

keep the retailers at our side_ The general problems or specifically the gas between
us and the retailers are:
Supply issues- many compliant about the delays in del very_

Unavailability of required stock on the delivery trucks_

Bulk buying customers need to be provided with timely delivery_

Complaints about no replacement of non-consumable articles in delivery_

Compliant about no replacement of leakage/breakage_

Large amount of visi problem in market not entertained_

Bulk customer's demands on some issues of fridges are not entertained timely.

Somewhere giving of undue promises is a matter of concern too_

These flaws in the working system are may be due to ill-delegation of work on
small levels . But we witnessed a great change in the distribution system and the
internal system of the organization during the period of internship, and many of the
flaws were removed drastically by the end of t his period.
Another matter of concern, out of observation, is non co-ordination with national
level of promotions_ This is in reference to Minute Maid Pulpy Orange_ Last year
witnessed a wave of national

level of media

promotions

on large

scale, but

the

domestic availability was poor, which was one reason that many still don't know the
taste of this product.
And the vice versa f or Nimbu Fresh for the current season, the domestic ground
is nearly f looded but no media promotions at large scale.
The csd products have been placed quite well this season, and are flooded quite
well in the market of Chandigarh , with all activation processes being executed
timely.

94.3

:lmplement:at: ons/ Recommendat:ions

On the basis of market reading.following steps may be beneficial:

A special sales team to deal this kind a high profile hospital ty segment.

With

people

becoming

health

conscious.

Maaza.

pulpy

orange

and

minute maid can be promoted in hotels and clubs by including them in

menu card.

Juices

can

be

placed

to

small

events

like

parties.

gathering

and

kitty

parties in hotels and clubs.

Shelf display can be there in bars.

Providing

OVA to

small

scale

hotels

to

convert

them

into

monopoly

accounts can be helpful.

Tetra

packs

should

pushed

more

in

hospitals

as

they

are

in

more

demand there , and then it can compete well with the other juices in the
market.

Kinley

water

now

should

be

pushed

since

packaged

water

price

has

increased, communication of idea the margin on Kinley is now more than

on other brands. Since in this segment the preference can be changed over
the vi sibility factor because, how does it matter what brand is consumed
when thirst is high.
Since the consumption of

Coke brands are high in hospitality segment ,

we need not to concentrate highly on

low consuming hotels ,

in f act

focused should be more on capturing novice high consuming ends and

maintaining strictly the present buyers.
Competing Real or Tropicana in the market might not be possi le until we
have our own range of juices.
Educating the hospit l ty segment that our association w th themis not just
as a provider. ratherit's a "joint venture" where food and beverage should

promoted as one entity and results willbe much more high than
expectations.

EXEC UTIVE SUM MARY

Kandhari Beverages
manufacturing the

in

Coca-Cola

association
products

with

since

Coca-Cola

Company

1993. and since then

has
the

been

overall

market share captured by the company in the area of Chandigarh is approximately

80/o, and has been marketing the products to its own discretion_
The company follows certain conventions to be carried out on a daily basis.
which were constituted by 'The Coca-Cola Company. Atlanta'_ These conventions are
termed as RED norms meaning 'Right

Execution Dai y '_

The company also

follows. executes and completely supports the promotional activities as enjoined or

prescribed by Coca-Cola India_
Apart

from

executive identity ,

norms

assigned

by

CCI.

the

it carries out certain operations

company

as

an

individual

including customized research

and implementation procedures which are formulated to f ulf ill the mission and vision
of the collaboration_
The work of an employee in a beverage company increases many folds in
the peak season Le_ summers .The availability of products , their visibility and to
follow the segmentation model near to accuracy is
research executions.
they

Each

and

every

activity

is

the
of

motive of these market

equal

importance,

since

all are

interconnected as a consequence_
All the activities were carried out to fulfill the goal of maximization of profits
via maximization of sales of our products_ The explanation of all these activities is
there henceforth_
This report will also give insight to the company's norms to maintain
standards. the production process . their strategies to keep up with their
retailers. company's approach towards the saJes of SSD and most importantly
this report will provide an opportunity to know the psychographic needs of the

retailers which in turn shows the company an avenue to create a good future
plan_

Chapter 10: SEGMENTATION MODEL -- RED

Outlet Structure of the Coca Cola in India

The outlets can be classified as per three criteria:
::;;..

Consumption

::;;..

Volume Pattern

Pattern

::;;..

Shoppers

Profile

SEGEMENT

A)
B)
C)

E & D
Convenience
Grocery

E & D : Those outlets where people visit to ear of drink are known and eating
and drinking outlets. Such as Restaurants and Hotels, Dhabas.
Convenience : Convenience outlets ate those out ets where people visit regularly for
various purposes like stationary shop,S.T.D - Booth, Betal Shop and general
Store.
Grocery : Those outlets where people visit to purchase food grains and any of
such things for future consumption are called as Grocery shops.

Based on Volume Pattern

According to the volume sale in the outlets the company has adopted a unique
policy of categorizing the outlets in four different segments such as:

Coca - Cola products, are listed in this segment.

BRONZE- Those outlets , whic

ive an annual sale of less than 200 crates of Coca

Cola products, are listed in thi

egment.

DIAMOND - Those outlets, which give an annual sale of more than 800 crates of Coca

Cola products, are listed in this segment.

GOLD- Those outlets,which

give an annual sale of less than 200 crates of
_..

._.......-

Coca - Cola products. are listed in this segment.

SILVER- Those outlets,which give an annual sale in between 200 to 499 crates of

,.Jj..
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-CONSUMER.
INCOME

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CONCEPT OF RED:

Group has

Kandhari Beverages Private Limited, Under Eurasia

Operating been working on RED Le_ Right Execution daily since
1993_

Coca-Cola Company

believes that its success depends on their ability

to connect wit h consumer by providing them with a wide variety of choices to meet
their desire, needs

and lifestyles

choices_

Company's

success

further

depends

on the ability of its people by execute RED effectively every day.

Market Segmentation Under RED.

Coca cola company's market can be segmented in RED along 3 lineschannel cluster , out let volume and locality income_

Number of shoppers or consumer in the given universe :

Coca cola attract the population by executing the following activities_
Bringing the cooler at the entrance_

Fixing the standee, sign at the entrance_

Fixing the combo Board at the entrance_

How coca induce for the incident?

By putting cooler in prime position_

By keeping the cooler pure & clean_

By doing Rack Display_

By fixing combo Board_

By doing Table activation_

Counter Top Display_

9'
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l
I

Outlet Activation Accordi ng to RED (Right Execution daily)

RED (Right Execution Daily):

It means to maintain the visional according to a fix set of coke product
which is known as COLO..J-K , it means the set will follow a particular brand
order. Thums-Up will take first place after t.4.at sprite or Limca , Fanta, Maaza
and water or soda will take this RED also take care of the S.G.A ( Sells
Generating Assets)
Activation - Activation means doing things in and around the coke outlet that
triggers Consumption I Purchase of Coca-Cola Products.
The important parts of activation are:

Placement of visicooler at ltot spot location Availability of the products.

Right location of display racers

lmpactful Communication of price message

The visicooler standards of all the channels:

Low

Medium

High

Diamond

20c/s

120c/s

Gold

7c/s

9c/s

9c/s

Si ver

4c/s

4c/s

7c/s

Bronze

Ice Box

Ice Box

Oc/s

I ce Box

To measure the impact of Right Execution Daily ( RED) a survey is done by A.G.
Nielsen (a consultant) every month. A.G. Nielsen conducts a survey by visiting all
the RED activated outlets and benchmarks it on the prescribed Merchandising

standards of RED. To create the Red Report A.C. Nielsen asks a set of question
from the
retailers which are as follows:

Related to Visicooler:

Is Cooler in the Hot Spot Location?

Doesit have all the products of Coca-Cola available?

Is the display of the Coca-Cola display of the products in a standard

such as sprite , Thums up, Maaza, Fanta and Limca",)

Is coler working properly?

Is the cooler pure?

Related to Price Communication:

Is there proper price display of the products?

Related to product availability:

All the brands should be present in the every distribution channel but main
concern is that 300 ml should be present in the every channel and 600 m1 and 1_5
litters per bottles should be presentin the Eating and_ drinking,convenience and
Grocery shop_

Chapter11 : SAM PLI N G BY CCI

Objective of Sampling
The Sampling was conducted to promote Coca-Cola as a symbol of joy
and happiness whi le taken along with meals. Thus the motive of sampling was
the promotion of idea

16Food

IN'i1:h Coke ".

This sampling was conducted in Eating and Drinking Joints all over the Tricity.
There were two way conduction process for this sampling to be mentioned, that I
learned from this sampling. Both would be discussed sequenti ally.

Sampling
The Sa.rnpling as mentioned above was conducted to promote the idea of
combination of Coke vvith Meals. Iwas part of the sampling process for the first
day on contract basis and had an opportunity to read the consumer behavior for
coke at ground level. Iwas appointed to conduct sampling at Pind Baluchi. After the
customers were over with their meals with coke, a f eedback process was also
conducted. Few observat ons made during the process:

About

90/o

of

customers

preferred having

coke

along

with

their meals,

irrespective of all ages.

The feedback f orms suggested that coke has earned loyal customers , as
the consumers

preferred coke

over

any

other

brand, though

it

was

just

about coke and no other brand.

The communication of idea, coke with meals, seemed to already exist in

the

present

culture,

the

sampling

process

just

made

the

idea

physical.

The process can also be termed as, 'revitalizing the brandimage'.

more

The amount of sampling targeted was 5 cases per outlet per day. Earlier the
sampling was done with 300ml coca-cola, but laterit was switched to 200ml
packing. The sampl ng was conducted f or three days every weekend for 5 weeks.
Every outlet

was appointed with maximum two promoters who were made equipped with a
promotional banner of coke,feedback forms , a coke t-shirt and chilled stock.
The promoters were strictly instructed to not to get involved in consuming
some other brand during promotions and were briefed on their conduct and
approach towards a customer. There were many changes that were made
during the execution of sampling to make the activity more effective.
The feedback form is shown in the Appendix3.

Eval uating the Impact of Sampling

Conducting the sample process is just not enough, its impact has to be
checked and for this purpose visit was planned twice and a format was designed to
evaluate the impact statistically.
Objectives of the evaluation visit:

Firstly the visit was planned to give a check on the execution of sampling as
to o

If the communication of idea is successfully made by promoter or

not.

If there is no discrepancy in the complete usage of stock other than

in sampling .

If no manipulation was done on the feedback forms by the promoters.

Secondly to evaluate the impact of sampling on the sales.

This sampling evaluation was carried out in nearly 30 outlets.The visit generally
used to start with conversation with the promoters and then a short interview with
the
retailer according to the format designed.
Few important parameters in this regard are as follows:
Footfall

Customer class

Duration of
sampling

Sales reading

before

sampling o

on

sampling
o

after sampl ng

Sales reading was the most important parameter to evaluate the Sampling
process. The observations recorded in the designed format are in Appendix3.
Though the impact of sampling as stated by the retailers suggests that it was
fruitf ul

only for the purpose of brand name revival , the market still shows

sales increase on account of sampl ng.

But the rnajor confusion lies in, as for vvhether the increase in sales vvas the
result of sarnpling or the dernand due to surnrners.
Thus the evaluation process needs to be enhanced for the next sampling process.

Chapter 12: MARKET IMPACT TEAM

This was an aggressive initiative to watch the market closely on all aspects ,
right from availability issues to visicooler problems, and to all kinds of complainitive
issues_
The teams of three to four members were allotted areas where they were supposed
to conduct RED and to look for all the discrepancies related to each and every outlet
in the allotted area.. Market Impact Team is an effective tool to identify all the flaws in
system at ground level andit uses the human resource to the fullest_
This activity was conducted every Friday and Saturday of the week, so that
the improvement on sector wise report can be conducted during the weekdays along
with the sales activities , and then again the activity was conducted next week to
watch out the effective improvements and stillleft issues of concern_
The team was handed with a format, designed specially to record informati on for
each and every outlet, along with a small feedback column_
The main obje ctive of this activity iNas to mainly seek out the availability issues for
each of the sku 's in every outlet_
Steps taken during the execution of Market Impact Team:

COLOJ-K formation_

SGA position, capacity and up gradation_

1OOo/o SKU presence_

Complaints

(delivery, leakage, breakage

and visi

problem)/ identification

of flaws_

Educating retailers on certain issues of visi service_

Each vi sit to the market for this task usually covers 30-35 outlets /two sectors for the

maximum output_

This activity was a main contribution in understanding and reading the market of coke
very well. RED being conducted along withit , not only made us understand the
organization andits working but also, MIT made us understand the market in which
cokeis operating in Chandigarh_
The format design to record data during MIT is given in Appendix4 and a sample
MIT with its report is also given in same Appendix4.

Chapter 13: O PE N REVIVE GROUP (ORG ACC)

Open Revive Group stands for those accounts which we suspect to be

under the surveillance of ACNei sen group. for the purpose of ranking under the
RED activation standards_ ORG accounts are taken into much more
consideration in terms

of availability of all brands and visi purity and

mostimportantly billing of every delivery . containing details of all sku's delivery .

so that all our brands comes into consideration while market review by
ACNeilsen_
ACNielsen is a global marketing research firm, with worldwide
headquarters in New York City _ One of ACNielsen's best known creations is
the Nielsen ratings.
which measure television.radio and newspaper audiencesin their respective
media markets_
ACNeilsen in context to coke, conduct execution to calculate market share
and rank amongits competitors_ It makes a visit to its untold RED outlet and checks
on every aspect of our standards _ They check the billing records of that outlet and

record the opening and closing stock , to evaluate the total sales monthly_ This is
the reason why bill execution in proper manner is required along vvith availabil ty of
all sku's in

these outlets_

Problems encountered vvith org accounts:

Maintenance of bill records is not an absolute activity_ Though many

outlets maintain it but this maintenance is required to be 100/o_

The billing is sometimes not done properly , which means that many a
times some sku's skips the billing_

The main concern for these accounts lies in appropriate billing plans , so that
we should not have a back fall due to this negligence_

Efforts made and more suggestions:

If billing is so important , then the maintenance of billing records by an

outlet should be rewarded with minor discounts_
Discounts should be made according to the sku's so that indirectly outlet
is pushed to buy all the sku's.

Stock check should be regular so that, even if

bills are not maintained

the present stock should make up for it_

We worked with the Market Research Executive on this issue and a discount plan
sku wise was planned for org accounts,for the maintenance of the bills.
The random visits planned to these outlets were supposed be check on
availability of stock ,and the format designed to be recorded is in Appedix .

Chapter 14: ROUTE TO SALE vs . PRE- SALE

Kandhari Beverages Pvt. Ltd. has been following the system of Route to Sale
since the beginning. VVe never tried pre-sell to execution until Pepsi started its work
on
it.

PRE-SELL

METHODOLOG Y

A selling methodology consisting of tvvo parts

Order Generation
Delivering the Pre-sold order

COMPARISON
PRE -

SELL

VVorks on a proper beat vvith a defined

PJP Pre-seller generates orders in
advance High capacity utilization of
delivery vehicle Company gets control
over retailers
High distributor ROI
CONVENTIONAL
Salesman works without a proper PJP
Salesman generate orders and del ver goods at the same
time Low capacity utilization of del very vehicle

Company's span of control till distributor

Less distributor ROI

FEATURES
A Pre-seller generates orders in advance after activating the outlet _ He
also communicates the scheme and promotional offer apart from carrying
out his executing an outlet responsibilty
Back-end activities l ke invoicing, delivering stocks, collecting cash &
glass are carried out by others
Delivery vehicles are loaded as per the orders, leading to a very high
capacity utilization & negl gible shortage of brands I pack to the retailer
Company gets control over retailers

OBJECTI VE
Improved Execution
Reduced manpower through better utilization of MD resources
Increased vehicle utilization (90 /o )
Improved Market control

The summer trainees were allocated the task to experience the pre-sale concept
and we were assigned an area to conduct the pre-sale for Coca-Cola brands
specially 200 ml packing_ This activity was continues for four days_ The designed
order sheet is in appendix5_
The only conflict we encountered with this activity was that retailers were reluctant
to order anything else than 200mL This was so because they were trustingly
dependable on route to sale_ The little experience with this activity suggests that
sales will not be dependant only on salesman but would also utilize the resources
of market developers_

ROLE REVERSAL
Role of salesman reduced to deliveryman_
Market developer will not only have to do executi on and open new account
but they will have to generate orders as well _ Thus market developer will also
act as salesman_
Sales executive needs to act as mentor and conduct morning and evening
meetings daily _
Constructing pre-sale format would include
Route Restructuring
Assigning Manpower
Building back end support

Chapter 15: PRMOTIONAL ACTIVITY

Coca-Cola

and

its

brands

have

made

their

mark

in

the

market

and

people identif y with our products very welL The main reason for this has been the

aggressive media
Cola is

marketing

across

the

country_

strongly positioned into its target segment,

Now
with

every

the

brand

help

of

of

Coca-

advertising,

which everytime features an icon or celebrity that helps connecting the nation to the
product_
But

on the

smaller

scale some more efforts have to

be made to revive

the brands in local areas_ And also apart from these there are many more efforts
that are made to maximize the profit of the organization_
The ultimate objecti ves of our business strategy are:

To increase volume

Expand our share of worldwide nonalcoholic ready to drink beverages sale

Maximize our long-term cash flows

Create economic value added by improving economic prof it_

These objectives are achieved through the help of promotional activities_ The
different types of tools used by KBL are as follows:

A)

UTC (Under the Crown) offers: there three types of schemes under this
a_ Money
end

cash

back

consumers

offer

are

in this

offered

cash

scheme

either

according

to

the
the

retailers

or

inscriptions

under the crown_

b_

Goding

SMS

consumers have
under the crown_

in

this

to avail

scheme

either

the

retailers

the sceme by SMSing

or

the

end

the code mentioned

c_

UTL(Under

The

Label)

mentioned under the labels of

in

this

scheme

the

PET packagings, they

monecy cash back or coding SMS_

offerings

are

can be either

d.

VVeekends offer : this scheme runs for the retailers in which they are
off ered more margins through discounting or for end consumersitis
run

B)

as Best Price offerings with lesser prices.

Impulse

Generation:

activation

of

physical

The

forms

activit

like

ies

Glow

under

Sign

this

Boards,

heading
Flexes

involves
Posters,

Danglers and Flendges.

C)

RED Execution :it is done with one main b g purpose of creating impulse.
It promotes impulse branding.

D)

Events : events are organized like moving showcase tr ucks and

sponsoring media events.

During our period ofinternship we got involved with 'Sprite UTC Scheme' and 'Event
Sponsorship for charity event by Rani Breast Cancer Trust'_

Facilitating the Product by Infrastructure

For providing the product in good manner, company has provided inf rastructure
which includes:

Visi
cooler
Freezers

Display racks

Free empty bottles and shells for bottle

Sale Promotion
Coca-Cola Company also does sponsorships with different college and school's
caf es and sponsors their sports events and other extra curriculum activities for
getting market share.

Normally they keep their freezers near the entrance of the stores. Sale Promotion
Company also does sponsorships withdifferent college and school's cafes and

sponsors their sports events and other extra curriculum activities for getting market
share.

Getting shelves
Coca-Cola gets or purchase shelves in big departmental stores and display t heir
products in those shelves in that style which show their product clearer and more
attractive for the consumer.
Eye Catching Position
Salesman of t he Coca-Cola company positions their freezers and their
products in eye-catching positions. Normally they keep their freezers near the
ent rance of the stores.

Conclusion

VVorking

with

experience about
organization

and

the

such

an

ground

moulding

organization

realities

the

of

novice

on

ground

beverage
thoughts

level

market.

to

gave

rich

Understanding the

their

benefit

is

another

experience. The ground level

is as real and harsh side reveals at times, when talking to a buyer really turns into
an argument.
Many a times we had to deal with harsh people politely too. but diplomacy
in

that

change

was

learning.

Understanding

working

culture

and

witnessing

the

in system during our work period inculcates high values of organization

into us.
study

makes

us

consumer market

The

against

any

conclude
other

that

beverage

Coca-Cola
producing

has

the

biggest

company. It

is the

number one brand just because people love it and those who loveit, they love it
by all means i.e. brand loyality. It has a big market share because of demand
and

this

is

the

why

the

bargaining

power

of

suppliers

is

weak.

And

our

consumers love it so much so that prices hardly matters for them.

But specifically for the Hospitality segment we are yet to cover the gap and
that can be doneif we introduce more taste in juice segment.
VVorking in association with Coca-Cola feels us very proud to be a part of such
a lovable global brand.

#:tOSPl"CAL. CL.I.HIS l;IOTELS A ND GOVT:. CAN TEEN

S.no.

Oul.I

Sales/day

Vlsl Stze

A/c

st<u s

No

<yKO

PC

VIS.I

KO

PC

ROB

.1... 1..25 It

2"

Juices

App
endix
Appen.dix:1

Wat.-

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QUESTIONNAIRE

1. Consumer's
----name --

Appendix 2

-- ----e.-Any
- other
----- -reaso"------ -- -

7. Have you ever had Minut:e Maid Pulpy Orange? f yes den how did you find it:?

Appendix 3

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Appendix 4

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Appendix 5

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Bibli ography

;
r

-1-- -

-'---

----.-

http://www.coca-colindia.com
http://www.thecoca
-colacompany.com
http://www.worldofcoca-oola.co mt

http://www.cocacola.com/
http://www.google.com
http://www.wikipedia.org

CAGR website

Beverage news

VV\N'VV.econornictirnes.india

times.corn.