A

Project Report

On

“Effective Planning of Distribution Network for Distributor

in Nashik City”

Submitted To

“University Of Pune”

By

PRASHANT KACHARDAS SAMDADIYA

MBA PART- II

In Partial Fulfillment

Of

Master of Business Administration (MBA)

Through

G.H.RAISONI INSTITUTE OF MANAGEMENT AND

RESEARCH WAGHOLI, PUNE.

(2008-2009)
 TABLE OF CONTENT

SR. NO CHAPTER NAME PAGE NO

1 INTRODUCTION OF STUDY

2 COMPANY PROFILE

3 OBJECTIVE OF STUDY

4 RESEARCH METHODOLOGY

5 REVIEW OF LITERATURE

6 DATA ANALYSIS AND INTERPRETATIONS

7 OBSERVATIONS

8 SUGGESTION & CONCLUSION

10 BIBLIOGRAPHY

11 APPENDICES
 Acknowledgement

Summer project is an imperative program in the MBA curriculum. This is an

opportunity whereby the student gets hands on exposure of the practicalities involved

in the corporate. Student also gets an opportunity to test his acquired skills;

knowledge into the practical environment and learns various new concepts, which are

far away from the reach of subject books.

I take this opportunity to express my deepest sense of gratitude and regards to

Mr.Dinesh Dhopate (ASM), Mr. C.D.Kulkarni (HR Head) for their constant

encouragement and valuable insight, guidance and facilities at all phases of the

project.

I would also thank Director and my project guide Mr.J.K.Sharma For his valuable

guidance, inspiration and encouragement.

Lastly I would like to take this opportunity to thank all those who criticized me from

time to time regarding my approach towards the project as their criticism acted as a

catalyst for my zeal to succeed.

SAMDADIYA PRASHANT KACHARDAS.

MBA-II (Marketing)
 DECLARATION

I, undersigned, Mr. Prashant Samdadiya student of MBA

semester III from G.H.RAISONI Institute of Management & Research,
Pune declare that I have prepared this project report on “Effective
Planning of Distribution Network for Distributor in Nasik City “at
COCA-COLA, NASIK, under Mr.Dinesh Dhopte and by Prof.
J.K.sharma Faculty of G.H.RAISONI Institute, Pune.
Enough care has been taken to make this report flawless. However,
Constructive criticism and suggestions from the readers of the report will
be greatly accepted.

Date: Sep, 2008

Place: Pune

PRASHANT SAMDADIYA
EXECUTIVE SUMMARY
 A project can be defined as a detailed & systematic analysis of a predefined

objective so that future actions could be formulated in order to achieve the objective

or target of organization. Project report explores the new dimensions & opportunities

for the organization so that the organization can grow by its strengths, winning its

threats & overcoming its weaknesses.

The purpose of research is to discover answer to questions through the application of

scientific procedures.

The main aim of research is to find out the potential outlets as well as new

and existing outlets and arrange them in a logical sequence so the distribution of the

product can be done conveniently.

The motive of this research was to identify the channel conflict of the

Distribution channel of HCCBPL. Out of which the most important about the

HCCBPL, that up to what level of services they are providing to trade, whether the

customer are satisfied by the company or not, what kind of support company requires

from the retailers.

In short it is rearrangement of distribution network by defining proper

routs to distribute the product to the retailers by the distributor.

So there is a primary and along with primary other secondary objective to

this project viz are as under

Though the primary objective is rearrangement of distribution network

other secondary objective about product availability, service frequency, other

services, competitors, address and location of outlets, telephone their class etc.Overall

performance of the distributors is assessed and rectify the faults.

 By collecting the all information from the existing route structure of retailer, It

is observed all the things of service. .After collecting all data, it become easy to make

route structure. Further made a schedule of delivery i.e. twice in week service.

Because of this survey it was easy to rearrange the distribution

In this way the project made plan of channels for distribution with an implementation

of it in the market

In FMCG the role of distribution system is considered as a first one because

distribution system makes product available to the outlets and only then it can be sold.

While conducting the survey of retailer a questionnaire to me , which has to

fill up by the retailers so that it meets the requirement of the organization.

I have tried to visit each and every outlet & personally them .In order to

know the market share of Coca-Cola and its competitors. I have conducted survey at

Nashik.

LIMITATIONS –

In reality when I carried out this field survey for HCCBPL, I came across different

problems. The problem faced were the limitation the project. They are as follows.

Reliability -

 During the project I have to trust the words of the retailer, but the actual
situation may vary.

Time constraint:

 As per the college schedule I had to complete the survey and its research

analysis in a period of 2 months. As a result, I could not carry out more

extensive survey. Due to this shortage of time we were not able to cover more

areas.
Respondent were busy:

 According to the requirement of the survey I had to fill in the questionnaire by

the outlet owners. But the owners are not always available for correspondence

due to some business works or some personal works.

Psychology of retailers:

 During the process of interview some of the respondent were feeling “why

me” attitude. They told that what’s the use of survey to them it is for

company’s use and they deliberately ignored the questions or misguided me.
INTRODUCTION
The project topic is EFFECTIVE PLANNING OF DISTRIBUTION FOR

THE DISTRIBUTORS OF NASHIK CITY.

Means rectify and eradicate the faults in the distribution network and re

arrange it in such a way that it would convenient to distribute the product to

enhance the sale effectively which is objective of our project , includes various

stages like Every Dealer Survey Identification of new outlets, definition of correct

routs and rearrangement of distribution channel.

The topic is market oriented that I had to collect first hand information from

the retail outlets in the Nashik city under the distributor.

In today's world of high stress, the need for refreshments and beverages is

increasing rapidly. Tea and Coffee were traditional refreshers. Now, they are being

replaced by soft drinks. In 1980's and 1990's, soft drinks became the most consumed

drinks over Coffee, Milk and Beer.

Although Soft drinks have been around for over 100 years, they didn't achieve

their number one status until fairly recently. In fact, more than one-third of all

beverages currently being consumed In the United States are carbonated soft drinks.

And while soft drinks are the drink of choice, there are still tremendous growth

opportunities for cold drinks and non-carbonated soft drinks. Coca Cola has the

largest market share in the world, in the field of soft drinks, its major competitor

being Pepsi.

The basic ingredients of soft drinks include water, color, gas, and the secret

formula (added flavors). Same flavors produced by different companies differ in taste,

due to the difference in the secret formula. The government of India has considered
 the soft drink industry as, "nonessential." As a result, the excise duty levied by

the government on soft drinks is very high. Soft drink industry in India has an annual

sale of about 6000 crores with per capita consumption of 9 bottles per annum.

Pakistan has per capita consumption of 16 bottles per annum, whereas China and

USA have per capita consumption of 800 bottles per annum.

COMPANY PROFILE
History of Coca Cola:

Jihan Styth Pemberton, the father of Coca Cola, first introduced Coca Cola

in Atlanta, Georgia in 1886, first Coca Cola was of Carmel colored syrup in a three

legged kettle. For the first time in history, carbonated water was introduced as soft

drink. It was Dr. Pembertson’s Partner Frank Robinson who suggested the name

“Coca Cola”, that is now famous & known to whole world.

In 1891, Atlanta entrepreneur Asa G Candler took the company in to a

staggering height of commercial success, making Coca Cola a famous institution the

world over. Coca-Cola is a type of carbonated soft drink sold in stores, restaurants and

vending machines in more than 200 countries. It is produced by The Coca-Cola

Company and is often referred to simply as Coke. Originally intended as a patent

medicine when it was invented in the late 19th century by John Pemberton.

The Coca Cola Company is the world’s largest manufacturer, distributor &

marketer of non-alcoholic beverage concentrates & syrups. Beverage products with

the Coca Cola brand name have been sold in the U. S. since 1886. In May of that

year , Dr. John S Pemberton invented Coca Cola. It was first sold at a soda fountain in

Jacob’s pharmacy in Atlanta, U.S. This was incorporated in September 1919, Coca-

Cola sells more than 1 billion drinks all over the world. Delaware & new employees

around 55,000 people. About 1.3 billion servings of Coca Cola products & consumed

all over the world every day. For the fiscal ending 2007, the company touched net

revenues of $32 billion.

Franchised production model:

The actual production and distribution of Coca-Cola follows a

franchising model. The Coca-Cola Company only produces a syrup concentrate,

which it sells to various bottlers throughout the world who hold Coca-Cola franchises

for one or more geographical areas. The bottlers produce the final drink by mixing the

syrup with filtered water and sugar (or artificial sweeteners) and then carbonate it

before filling it into cans and bottles, which the bottlers then sell and distribute to

retail stores, vending machines, restaurants and food service distributors. The Coca-

Cola Company owns minority shares in some of its largest franchises, like Coca-Cola

Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company (CCHBC),

Coca-Cola FEMSA, Hindustan Coca-cola beverages(HCCBPL), but fully

independent bottlers produce almost half of the volume sold in the world. Since

independent bottlers add sugar and sweeteners, the sweetness of the drink differs in

various parts of the world, to cater for local tastes.

COCA COLA INDIA: A BRIEF OVERVIEW

Coca-cola Export Corporation started its business in India in 1977, with its corporate

office in Atlanta and its various plants globally. Janata Party Government stopped the

Indian operations with a view to promote national brands, with the changing

government policies from time to time. Multinational companies were again permitted

to operate in India in October 1977. This was the re-entry of the company in the

Indian market after the withdrawal of its operations in 1977,

The company's operations started in Agra and thus its wings spread all over India. The

Indian market offers a strong consumer potential as majority of the population is in

the middle class category, which provides a strong consumer base for an FMCG

company like Coca-cola to float its range of products in the market.

Coca-cola had acquired the brands like Thumbs Up, Gold Spot, Limca, Maaza, etc.

from Parley Company. These products had achieved a strong consumer base and

formed a strong brand image of the company during the re-entry of the company in

the Indian market in 1993. Thus, these drinks became a part of the product range of

Coca-Cola.

"Share my dream", said Coca-cola to the Indian consumers in 1993, and coke lovers

welcomed back, the world's best-known brand with misty eyes. Coke entered the

A&M top brands survey in 1994 as no. 31 with a power score of 29.9, a year after its

reentry to India. Among soft drinks, coke was stronger than Pepsi among the older

people, while Pepsi scored above coke with the "Generation next".

Coca-cola has brought the national brands Thumbs Up, Limca and Gold Spot from

Parle Beverages. Coca-cola has also acquired Cadbury's soft drink brands like Crush,

Canada Dry and Sport Cola in the early 1999 and recently in October 2000, it has also

acquired the distribution rights of these brands from IFB Agro limited.

Pepsi, although started a couple of years before Coca-cola, has a lower market share

today. It has bought the Mumbai based Duke's range of soft drink brands. After

undergoing a complete restructure of its set up, Coca-Cola India Ltd. (CCI) was

confident of making profit two to four years down the line. The company has

developed four core business strategies. First, "Think local, act local" approach, both

in terms of manufacturing and distribution as well as marketing. Second, "Focus on

all non-alcoholic commercial beverages". Third, "Ensure cost and process efficiencies

in all aspects of the business" to maximize returns on the infrastructurat investment.

Forth, "Nurturing a people-driven company". The company has also worked on its

distribution strategies by increasing the outlet base. The focuses are on increasing

rural penetration, profitability and own your asset concept (OYA). Coca-cola has also

adopted a local consumer marketing strategy by promoting coke in Delhi, Thumbs up

in Mumbai and Andhra Pradesh and Fanta in Tamilnadu. The recent focus on Maaza

has also increased its growth by almost 30 percent. Coca-cola India has also launched

Kinley mineral water. Various product of Coca-Cola

In 2005, the Company broke into two divisions: Coca-Cola India and HCCBPL

to increase focus on the bottling business.

HCCBPL is the bottling division

Bottling Investments Group (BIG) envisions to create a 'World Class Bottling

Business' measured against key benchmark

o In 2005, the company split into two divisions - Hindustan Coca-Cola

Beverages and Coca-Cola India o HCCBPL handles manufacturing of finished

products, selling and delivery to customer

• Coca-Cola sells more than 1 billion drinks a day and employs more than

55,000 people all over the world.

• More than two crore Indians are refreshed by Coca-Cola every day!
 INDIA BUSINESS MODEL

Coca-Cola
India -Division
Manufactures Concentrate,
Beverage Base & Syrup
&Corporate Service support Hindustan Coca Cola Beverages Pvt. Ltd.

HCCBPL
Regions/Units
Manufactures Finished Bottle/Can,
Fountain Syrup

Customer
Sells & Delivers

Consumer

The Coca-Cola eKO system is governed by 5 major policies. Each of these policies

are supported by specific requirements and practices that govern our daily operations:

1. A commitment to lead

2. Compliance and beyond

3. Accountability

4. Minimizing impact maximizing opportunity

5. Citizenship
Mission

Everything we do is inspired by our enduring mission:

• To Refresh the World... in body, mind, and spirit.

• To Inspire Moments of Optimism... through our brands and our actions.

• To Create Value and Make a Difference... everywhere we engage.

Vision

To achieve sustainable growth, we have established a vision with clear goals.

• Profit: Maximizing return to shareowners while being mindful of our overall

responsibilities.

• People: Being a great place to work where people are inspired to be the best

they can be.

• Portfolio: Bringing to the world a portfolio of beverage brands that anticipate

and satisfy peoples’ desires and needs.

• Partners: Nurturing a winning network of partners and building mutual

loyalty.

• Planet: Being a responsible global citizen that makes a difference.

Values

We are guided by shared values that we will live by as a company and as individuals.

• Leadership: "The courage to shape a better future"

• Passion: "Committed in heart and mind"

• Integrity: "Be real"

• Accountability: "If it is to be, it’s up to me"

• Collaboration: "Leverage collective genius"

• Innovation: "Seek, imagine, create, delight"

• Quality: "What we do, we do well"

Beliefs

We strive every day to refresh the marketplace, enrich the workplace, protect the

environment and strengthen our communities.

We are a local employer, with responsibility to enable our people to tap into their full

potential; working at their innovative best and representing the diversity of the world

we serve.

We are an investor in local economies and a driver of marketplace innovation, with a

responsibility to act as a good steward of our natural environment.

And we are a local citizen, understanding our responsibility to contribute to an

improved quality of life in our communities.

Products

Coca-Cola serves in India some of the most recalled brands across the worlds, which

include names such as Coca-Cola, Diet Coke, Sprite, Fanta, along with the

Schweppes product range.

The acquisition of Thums Up brought some of the leading national soft drinks like

Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to this,

Kinley mineral water was launched in the year 2000.

The Company ranking up "firsts" in the introduction of Canned and PET soft drinks,

vending machines and backpack dispensers for crowds of cricket supporters.

PRODUCTS -

“Strong Cola Taste, Exciting Perosnality”

Thums-up is a leading carbonated soft drink and most trusted

brand in India. Originally introduced in 1977, Thums Up was acquired by The

Coca-Cola Company in 1993.

Thums-Up is known for its strong, fizzy taste and its confident, mature and uniquely

masculine attitude. This brand clearly seeks to separate the men from the boys.

Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one

of the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993.

Over the years Fanta has occupied a strong market place and is 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 uplifts feelings but also helps free spirit thus

encouraging one to indulge in the moment. This positive imagery is associated with

happy, cheerful and special times with friends.

Limca, the drink that can cast a tangy refreshing spell on anyone,anywhere. Bom in

1971, Limca has been the original thirst choice, of millions of consumers for The

brand has been displaying healthy volume growths year on year and Limca continues

to be the leading flavors soft drink in the country.

The brand has been displaying healthy volume growths year on year and Limca

continues to be the leading flavors soft drink in the country.

. Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca

and walk away anew person...

Worldwide Sprite is ranked as the No. 4 softdrink & is sold in more than 190

countries.

In India, Sprite was launched in 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. Why? With a strong appeal to the youth,

Sprite has stood for a straightforward and honest attitude. Its clear crisp refers high

taste encourages the today's youth to trust their instinct, influence them to be true to

who they are and to obey their thirst.

Maaza was launched in 1976. Here was a drink that offered the same real taste of

fruit juices and was available throughout the year.

In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the

fruit drink category. Over the years, brand Maaza has become synonymous with

Mango. This has been the result of such successful campaigns like "Taaza Mango,

Maaza Mango" and "Botal main Aam, Maaza hain Naam". Consumers regard Maaza

as wholesome, natural, fun drink, which delivers the real experience of fruit. The

campaign builds on the existing equity of the brand and delivers a relevant emotional

benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza".

Coca-Cola “Thanda Matlab Coca-Cola”

This is World's favorite drink & World's most valuable brand. The most recognizable

word across the world .Coca-Cola has a truly remarkable heritage. From a humble

beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer

and distributor of non-alcoholic beverages in the world.

More Over the past ten years has captured the imagination of the nation, building

strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola

has been very strongly associated with cricket. In 2002, Coca-Cola launched the
campaign Thanda Matiab Coca-Cola" which skyrocketed the brand to make it India's

favorite soft-drink

“Boond Boond Me Vishwas”

Water, a thirst quencher that refreshers, a life giving force that washes all the

toxins away. A ritual purifier that cleanses, purifies, transforms Water, the most basic

need of life, the very sustenance of life, a celebration of life itself.The importance of

water can never be understated. Particularly in a nation such as India where

governs the lives of the millions,

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. Water you can

trust to be truly safe and pure. Kinley water comes with the assurance of safety from

the Coca-Cola Company.

Marketing Mix

Coca-Cola Company strives for unparallel understanding of consumers and the drives

of their attitudes & behaviors towards the purchase of non-alcoholic beverages. This

allows them to build their brands & achieve profitable volume growth. They do this

by understanding the consumer. Even with worldwide success, Coca-Cola products do

not sale themselves. The company is always working to expand its business to reach
more consumers, in more places on more occasions. In summery, marketing at the

Coca-Cola Company begins and ends with consumer.

The 3 A's

Coca-Cola Company's portfolio is a powerful set of brands that can satisfy consumer's

non-alcoholic beverages needs. Their strategy for connecting with increasing numbers

of customer is based on the belief that consumers will buy our products if they are

widely available, if they are affordable & if they are well known to the customers by

aggressive activation. They call this strategy as the 3 A's.

Availability

Coca-Cola's product must be widely available to encourage customers. For the

company ever growing Availability is very essential.

Affordability

Coca-Cola's products must have the best price relative to value. Simply being

affordable may imply a place in consumers mind.

Activation

Coca-Cola's products must be preferred, not just acceptable. Consumers should ask

for its brand by name & for that aggressive Activation is necessary.
Types of Channel Ditribution

Channel Of distribution for consumer goods

O-Level 1-Level 2-Level 3-Level

Manufacturer Manufacturer Manufacturer
Manufacturer

Wholesaler Wholesale

Jobber

Retailer Retailer Retailer

Consumer
Manufacturer Consumer Consumer Consumer

Channel of distribution in Coca-Cola

Company

Distributor

Retailer

Consumer
ORGANISATIONAL STRUCTURE

AGM / AOD

Plant HR Finance Sales Manager

Manager Route to Manager Manager / GSM
Market

Channel Area Capability

ASMs
Manager Dev Manager

Sales Executives Sales Trainers

Market Distributors/
Developers Salesmen

Marketing Key Accounts

OBJECTIVES
PRIMARY OBJECTIVES –

• To analyze and identify the present distribution network and rearrange it to

improve the effectiveness of distribution of product to enhance the ultimate

sale.

• To suggest delivery route in order to improve delivery schedule effectively.

SECONDARY OBJECTIVES –

• To assess the sales potential of the outlets of HCCBPL in Nashik city.

• Improve the distribution network

• To find out any deficiency in the service offered by Coca-Cola

• Addition of the new outlets for add new vehicle for restructuring route and

increase sales volume of distributor and company.

• Increase the realignment of routes.

 RESEARCH

METHODOLOGY
 Company wanted to understand the strength & weakness in their distribution

channels. Hence project was assigned to study the distribution channels.

Research in common parlance refers to a search for knowledge. In fact

research is an act of scientific investigation.

Research Methodology is a way to systematically solve the research problem.

Research Methodology is the way of knowing how research is done. It is science of

studying how research is done.

The methodology adopted for this research is totally exploratory as the reason

for the research is to find out the “Distribution network in context to Unique

Distribution And Selling of Colas”.

Data sources

• Secondary sources:

The data that is collected from already existing sources is called secondary

data. In case of my study the secondary sources were the records of the company,

internet.

• Primary sources:

Sources from where the first hand information is gathered directly are called

primary data sources and information thus collected is called primary data. In case of

my study the primary sources were retailers.

Plan of Action

• Segment wise division of the market.

• Collection of database.

• Setting targets of personal interview and collection of information per day.

• Analysis of the information.

 • Preparation of pie charts in the form of soft copy to analyze the position of

each soft drink in the market against the competitors.

Finding out the effectiveness of the channel was a difficult task. In some cases I had

to depend on retailers' word. Availability of the product was found by actually

counting the crates of various products.

Methodology -

1. Survey method

2. Observation method

3. SAMPLING PROCEDURE:

This refers to procedure by which respondents should be chosen. Probability sampling

can be of following types:

 Cluster sampling

In this case stratified random sampling was done since respondents were classified

into well define classes or strata’s that were distinct from each other.

Sampling Method

Distributor-wise Sequence Sampling

Interviewing the retailers by questionnaire collects the data. The questionnaire

construction is properly regarded as a very imperfect art. There are no established

procedures that will lead to a 'good' questionnaire. A good questionnaire accomplishes

the research objectives. Surveys must be custom-built to be the specification of given

research purposes, and they are much than a collection of unambiguous questions. A

number of constrains are imposed on the development of an appropriate

questionnaire. The wording and sequence of questions can facilitate recall and

motivate more accurate responses.

Sample Unit : (Sample Size) - Nashik

300 Retailers 1 Distributor

Sampling Area :

Area covered in this survey was College road, Ganagapur road, Mahatma

Nagar, Tidkey Colony, Sharanpur Road, Tibetian Market etc. for HARI OM

DISTRIBUTOR in Nashik city.

Data Collection :

Structured Questionnaire:

In the survey, structured questionnaire as a tool for asking a set of standard

questions.

FORMATION OF QUESTIONNAIRE:

Quite often the questionnaire is considered as the heart of the research operation.

Hence it should be constructed carefully. It is an instrument that is widely used to

collect various types of data and consists of long list of questions designed to collect

any information. It has been generally seen that people are more frank in giving

replies through the questionnaire than the interview. Though being less expensive it

has certain limitations like incomplete entries and incomplete responses. But the
educational qualification of the respondent is an additional factor by which this

technique is more relied upon.

Formation of a good questionnaire involves intensive thinking and deliberation of the

problem with predetermined objectives and aims properly placed in the questionnaire.

All the questions in the questionnaire are framed with a specific objective in mind and

all are placed in a logical and sequential order.

Interview:

The next step involved in collecting information, requires discussion with

people. Thus valuable information was gathered through informal friendly talks with

the people.

Information Gathered :

1) Primary Data:

• Direct interview with retailers

• Gathered information through questionnaire

2) Secondary Data:

Data which are collected through magazines , websites, company book

& records.

The survey held in logical sequence as per distribution rout of distributor for

distributing the product. As per the company’s instruction.

REVIEW OF LITERATURE
 As given above the project was given for rearrangement of distribution

network as well as collection of primary data from the retail outlets about product

availability, service, competitors, market share, address and location, telephone no.,

capacity of each outlet etc.

For collecting such information company gives a column wise format of

questions should be asked. That format is standard format which accurately fulfill the

main aim of the project.

Mr. Dinesh Dhopte (ASM) Hindustan Coca Cola Beverages Pvt. Ltd. For

Nashik plant. Gives 6 steps in order to complete this project. As per the company’s

instruction I did the work which is divided in such 6 steps .They are as Follows

1) Definition of the area where survey is to be held (Distributor wise)

2) Every Dealer survey (EDS)

3) Rout Definition

4) Rearrangement (Final rout list)

5) Validation

6) Recording the information in the DAS - Dealers Accounting Software

(Company’s own software)

 Definition of area where survey will be held:

In this first step the area of survey was defined. A specific area was given for

survey by the company. It was impossible to do survey of whole nashik city because

of limited time. So it was necessary to assign a specific area for the survey. So

company gave the distributor wise area.

Distributor wise area -

The company has main distributors, which has been assigned a specific area

for distribution of product. No one distributor can distribute the product in the other’s

area.

Company gave the area of a particular distributor. So it was easy to do survey

in that particular area.

Existing list of records –

Before doing the survey I collect the existing records of retail outlets from that

distributor, so I got certain base for my survey. Company’s marketing executives

guided me for that purpose. Company gave a special column wise format of questions

which are to be asked.

I also collect the information about the routs through which distribution is

done in that area. It includes starting point from where the vehicle starts to give

delivery, the day on which the vehicle goes on that particular rout.

In short that was existing data which was only a base for survey, because the

original and fresh data was to be collected from the survey.

 Every Dealer Survey (EDS):

After collecting the existing information as base the survey starts with the

standard questions’ format which is fair enough to fulfill the purpose of survey. That

format is provided by the company. It was company’s standard format. The

company calls this survey as Every Dealer Survey (EDS).

Every dealer survey is collection of information about company’s service,

performance, capacity of retail outlet, mos famous product, response of new product,

delivery service frequency etc.

In that format following information collected to make a true database of

target market.

Brief information of outlet -

The information of distributor under whom the area is there. Vehicle type ,

vehicle’s registration number, name of sales person, route name, outlet name, its

owner or contact person’s name, its address, telephone no, etc

Channel -

Type of channel i.e. whether it is grocery, eating and drinking or convenience,

other etc.

Grocery:

Outlets primarily engaged in retailing of food & various household items. It

includes Grocers and General Stores.

Eating & Drinking (E & D):

Outlets selling to eat which are being cooked within outlet, made at the outlet
 with possibility of consuming those product within the outlet. The outlet may

have lace to sit. It includes QSRs/ Bakery/ Mithai stores/ Restaurants/ Bars/ Juice

centers/ Soft Drinks Shops/ Ice Cream Parlors/ Tea Shops/ Cafes etc.

1. Convenience:

Includes outlets, which are small stores or shops, generally accessible locally.

These are often located alongside busy roads. It includes Chemists/ STD Booths/ Pan

– Beedi Shops etc

CHANNEL
Similar grouping
CLUSTER of Outlets basis
format & shopper
occasion
GROCERY

EATING & DRINKING

CONVENIENCE

VPO Class –

VPO class defines the outlet’s capacity of making stock. It means each outlet

is purchasing how much cretes. It is classified in 4 categories

1) Bronze -

In this category the outlet purchasing 1 to 200 crates included

2) Silver –

The outlet purchasing 200 to 500 crates is included in silver category

3) Gold –

The outlet purchasing 500 to 800 crates is included in gold party.

4) Diamond –

In this category the outlet purchasing above 800 crates is included . Such

Diamond outlet is known as RED OUTLET in the company. This outlet name is

always shown in red ink in the company’s record.

Classifying Outlets basis

Volume Per Outlet

OUTLET

VOLUME

B S G D
R I O I
O L L M
N V D O
Z E N
E R D
 Route Definition:

While doing the survey I visited each and every outlet in the rout in sequence

and identify existing outlets as well as new outlets. At the time of doing this activity I

found different small routs to main routs. So I recorded those routs in logical manner

in which vehicle can distribute the product at the time of going through main route.

As per the companies instructions I divide the one route in main route and sub route.

Main route –

The route on which basically the vehicle is distributing the product, which is

in the companies record. E.g. Gangapur road, College road etc. Some routs are known

as area wise like Mahatma Nagar, Tidke colony.

Sub routs –

There are many small routes which are connected to main route are known as

sub routs. This sub routs are having lots of outlets, so they are equally important as

like main route. So vehicle can serve those routes at the time of serving main route.

Such routs are denoted by s1, s2 etc.

Rearrangement (Final Route list):

After identifying the routs as well sub routs, all the existing as well as new

outlets are arranged sequensely. As per the capacity of vehicle to serve the route with

sub routes final list of outlets and route is prepared. This is totally depend on vehicles

capacity.

E.g. one vehicle (Tempo) with salesman can cover 50 to 60 outlets in a day. As per

this capacity new routs are defined through which vehicle can serve the outlets

without any difficulty.

Allotment of particular day for particular route –

 For every main route or area a particular day was assigned and service

frequency for each rote was at least 2X means twice in a week.

Arrangement of route and sub routes -

Validation:

After rearranging the outlets and defining the error free routes, These routes

are checked by the ASM of the company. He discussed those routs with their

marketing executives and me that whether those arrangements are valid or not. He

also cross checked this arrangement with his past existing data.

Recording of information in the DAS:

This was the last step in our project. After validating the routs and preparing the final

list, all the information about outlet is recorded in the DAS (Company’s software).
DAS –

DAS (Dealer’s accounting software ) is a software which is recently

introduced in company. As we come to know by name itself, it is a software which is

developed to record brief information of retail outlet under each distributor and

information about main distributor itself.

Before DAS there was company’s manual record which was very lengthy.

There were big files of this information which were expensive and time consuming to

record, to update and to extract.

It is totally automated system having the back up data of actual market where

products of the company are going to be distributed. DAS software is developed for

coca-cola company.

Advantages of DAS -

1) Faster to find out information of any outlet.

2) Total mechanized data.

3) Back up of recorded data on another hard disk.

4) Less time consuming and inexpensive.

5) Having computerized system itself having competitive advantage of company in

the era of competition

6) As it is a systematic record, it is possible to ASM to improve the distribution

network as well as sale.

In this software there are columns to record the information about the outlets. These

columns consist with Name of outlet, its address, location, telephone no. contact

person, VPO class, channel, red code, day of service etc.

DATA ANALYSIS AND

INTERPRETATION
 1. Type of Outlet:-

Types Of Outlets No. of Retailers Percentage

Eating & Drinking 140 42.42%
Grocery 115 34.84%
Convenience 60 18.18%
Others 15 4.54%
Total 330 100%

Chart- 1

TYPES OF OUTLETS

5%
18%
42% E&D
Grocery
Convenience
Others
35%

Interpretation –

There are near about half outlets are eating and drinking in the area I

surveyed. Grocery shops are also more interested to sale the cold drink. These grocery

shops include more (kirana) stores& also chance to growth in sale by increasing

number of E&D outlets.

2. Existing and additional outlets –

Table-2
Outlets No. of outlets Percentage
Existing outlets 300 90.90%
New outlets 30 9.10%
Total 330 100%

Chart- 2

EXISTING & NEWOUTLETS

9%
Existing outlets
New outlets
91%

Interpretation –
Company had a list of outlets which is it serving, but at the time of survey I found

there are more outlets in the sequence which is not in the company’s list and

distributor is not serving them. In new outlets I found several medical stoers, pan stall

which can bring additional sale.

3. What is the current frequency of the service provider visit in a week?

Table- 3
Frequency No. of retailers Percentage
1 140 46.66%
2 90 30%
3 70 23.34%
Total 300 100%

Chart- 3

SERVICE FREQUENCY IN A WEEK

17%

1
2
50% 3

33%

Interpretation –
Here half of retailers are serving by twice in a week frequency which is quite

comfortable. In the market many retailers are adjusting with service frequency of

twice but they will be happier if they get frequency of thrice.

Some small convenient stores and small turnover outlets are served by service

frequency of one time.

4. What is the frequency of service do you expect?

Table- 4
Frequency No. of retailers Percentage
Twice 141 47%
Daily 9 3%
Alternate days 150 50%
Total 300 100%

Chart- 4

EXPECTED SERVICE

47% Twice
Daily
50% Alternate days

3%

Interpretation –
This shows the expectations of outlet from service

provider(distributor). The 47% of outlets wants service twice in a week,while 3%

wants the service daily and 50% outlets demanding service in alternate days . So it

shows more outlets want service twice or in alternate days.So the service provider

should provide service in alternate days to the retailers.

5. What is the sale of crates per week?

Table-5
Sale of crates No. of retailers Percentage
0-10 100 33.33%
11-20 90 30%
21-30 70 23.33%
31-40 40 13.33%
Total 300 100%

Chart- 5

SALE OF CRATE

13%
34%
0-10
20-Nov
21-30
23%
31-40

30%

Interpretation –
As the frequency of service is twice in a week is more and expected to be thrice, the

retailers are not maintaining big stocks and purachasing only that much which is

require. So purchase of 10 and 20 crates is more

6. What do you think about the promotional activities of the company?

Table- 6
Activities No. of retailers Percentage
Good 45 15%
Average 225 75%
Poor 30 10%
Total 300 100%

Chart- 6
 SATISFACTION LEVEL

10% 15%

Good
Average
Poor

75%

Interpretation –
This Pie-chart shows the 45 outlets(15%) told that the promotional activities

are good, while 225 outlets(75%) told that the promotional activities of the company

are average, 30 outlets(10%) not happy with promotional activities of the company.

So this shows that the most of outlets are quite happy with the promotional activities

of the company. There is huge potential to promote relation who have rated average

(75% )

7. Are you satisfied with the distributor service?

Table- 7
Satisfaction No. of retailers Percentage
Yes 140 46.66%
No 160 53.34%
Total 300 100%

Chart- 7
 SATISFACTION LEVEL

47%
Yes
No
53%

Interpretation –
Overall the number of satisfied retailer is less than dissatisfied retailers.

Dissatisfaction arises because of low service frequency, visicooler problem, ignorance

of small turnover etc.

8. Market share analysis with competitors –

Table- 8

COMPANY MARKET SHARE (%)

Coca-Cola 70
Pepsi 25
Others 5
Total 100%

Chart- 8
 80%

70%
60%

50%
PERCENT

40%

30%
20%

10%
0%
CocaCola Pepsi Others
COMPANY

Interpretation –
Coca-Cola takes only Pepsi as its rival. It doesn’t take other local

players in to consideration very seriously. In Nashik the performance of Pepsi is very

poor. Market share of Coca cola in Nashik city is near about 70%. There are most of

monopoly outlets in the Nashik.

9. Which Product of coca-cola company most sold?

Table- 9

Product No. of retailers Percentage

Thumps up 120 40%
Coca cola 15 5%
Sprite 75 25%
Mazaa 15 5%
Fanta 30 10%
Limca 45 15%
Total 300 100%
Chart- 9

PRODUCT SALE

15%
Thumps up
10% 40% Coca cola
Sprite
Mazaa
5% Fanta
Limca
25% 5%

Interpretation –
In Nashik Thums up is most popular and most selling product. Coca-

Cola has limited sell. Sprite is more popular on young generation and Fanta is popular

in girls and women. Limaca is also popular as thirst quenching drink

10. Visicooler availability in outlet - (Product cooling Equipment)

Table- 10

Availability No. of retailers Percentage

Coca cola 120 40%
Pepsi 30 10%
Both 90 30%
None 60 20%
Total 300 100%

Chart-10
 Outlet (%)

20%

40% Coca-Cola
Pepsi
Both
None
30%
10%

Interpretation –
As coca-cola has grater market share, it is providing more and more

visicoolers to the monopoly outlets where as Pepsi has very less monopoly outlets.

Shared market outlets having both visicoolers is also more in number. There are also

small as well as grocery outlets which doesn’t have product cooling equipment i.e.

visicooler.

11. Which mineral water sold most?

Table-11

Name No. of Retailers Percentage

Local Brand 180 60%
Bailey 45 15%
Bisleri 30 10%
Kinley 18 6%
Aquafina 15 5%
Oxyrich 12 4%
Total 300 100%

Chart-11
 MARKET SHARE OF KINLEY

Local Brand
30%
Bailey
Bisleri
Kinley
49% Aquafina
8% Oxyrich
5%
2% 3% 3% Total

Interpretation –
This pie-chart diagram shows that Kinley mineral water of coca-

cola company have only 6% market share, Bailey mineral water have near about 15%

market share, whereas Bisleri have 10% market share of Aquafina of Pepsi company

have 5% market share, Oxyrich have nearly 4% market share but local brands like

Rajhans, Aquaaura,Honey,Pentacool have covered nearly 60% market’s local brands

or products have highest market share than branded products. it was due to high price

of kinley.

12. Expectations of Outlets from Company

Table- 12

Expectation No. of Retailers Percentage

Cash Discount 135 45%
Credit System 105 35%
Points Earned on 60 20%
achieving targets
Total 300 100%

Chart-12
 EXPECTATION FROM COMPANY

20%
Cash Discount
45%
Credit System

Points Earned on
35% achieving targets

Interpretation-

This shows the expectations of outlet from company. The 45 % of

outlets wants cash discount on product purchase, while 35 % wants credit system &

rest wants point’s rewards on sale. So it shows more customer wish to cash discount

than other.
 OBSERVATIONS

Information about the outlets -

1. Market Knowledge:-

Dealer survey gives the total profile of the market by knowing

• The type of Distributor

• Location of distributor

• No. of distributor who keep Coca-Cola all products stock

 • The marketing inputs with respect to:

a) Advertisement

b) Servicing

Distributor survey as the word indicates is the survey of every distributor of

soft drink in the area .For practical purpose the distributor not only include the

authorized distributor appointed by the company but it also it includes retailers –big

or small grocery, shops, stationary, restaurant, retail shop etc. Beside these the various

exclusive stalls and sales of pantry cars also included in it. Briefly by distributor we

mean those who are dealing with the soft drink in some way or the other in large or

small quantity, directly or indirectly.

• Thus my study includes all such distributor which include various aspects :

• Route wise no. of distributor

• Crate strength

• Per day sales

• Chilling aid

• Advertising

• Nature of outlet

From Every Dealer Survey -

• From interview of all the respondents its found that there was problem in

delivery schedule of the products.

• Problems associated with the existing route structure & delivery schedule was

known from the retailers. Existing route structure was not covering all outlets

& frequency of visiting to outlets was very low.

• That different types of outlet vary in there number of units sold & this

variation in the sale is due to the size, type of customer, location of outlets.

• Brand preference among responded outlets. It just shows that monopoly &

shared market of both Coca-Cola & Pepsi.

• The availability of the visicooler provided by company & their competitors. It

can be find out the more the visicooler more the sale of company product.

• Among the responded outlets it can be found out mineral water of company

i.e. Kinley show poor performance due to low profit margin & high price of

bottle.

• Survey gives the information about how salesman ignores small outlets &

only concentrating on high volume outlets. So that the small outlets think to

stop selling the company product it may cause decrease the sale. They also

think to start the Pepsi service.

• In very few outlets there is Pepsi monopoly but they are not also satisfied with

the service and willing to diversify towards Coca-Cola.

• Helps to know the satisfaction of outlets from the rewards provided by the

company or its distributor.

 SUGGESTIONS AND

CONCLUSION

Suggestions –

• The problem faced by outlets were identified as the schedule of delivery,

day, placing of order, fulfillment of order, and frequency. The company

should make changes in the distribution channel with a view to cover all

outlets under each distributor & timely delivery and complete of delivery
 of the required quantity according to rearrangement done by us in the

project.

• The suggested changes in the design of distribution network & route

structure will help to solve the problem of retailers to get timely delivery,

frequency of distribution because format cover all outlets including small

volume outlets in it.

• Coca-Cola has provided more number of visicooler to its retailers. The

Visicooler holding retailer face the problem with visicooler i.e. Size,

service of visicooler, freezing efficiency etc. So provide visicooler

according to size & sale of the outlet. If there is problem of functioning of

visicooler then that problem should be solved quickly.

• It was found that there are number of local competitors in mineral water

segment. These local players are providing more margins to retailers. In

order to motivate retailers, to stock the company‘s Kinley mineral water,

the margins should be reset to the retailers.

• Company senior officials should also visit the outlets.

• There should be a strict route schedule, which should be followed by the

salesmen everyday. (Which should be decided in confirmation with the

company officials as well as the distributor)

• The company may allow sales of even a crate to the low selling outlets

during the off-season to increase sales.

• Sales executive must conduct regular meetings with the sales staff. So that
the problems of retailers are understood. The sales executives may also
visit the outlets on regular basis so as to have direct interaction with the
retailers.
 • The entire products of company should be displayed at one place in the

outlet so that the customers can easily made aware about the different

products of company.

• Distributors of the company should be carefully selected, as there were

many complaints against the company distributors regarding distribution.

A distributor should be totally Business oriented & in the absence of his

salesmen, he should be capable of going on the route & performing

effective sales.

• Salesman should have good interaction with the distributor & outlets,

which will result in increase the sales. Targets for the Salesman should be

set for identifying and creating new outlets.

Conclusion-

1. While working for Coca-Cola I have experienced a lot many things. Coca-Cola is

a company whose purpose is to meet the refreshment need of people everywhere, to

anticipate the aspiration of consumers and to respond creatively and competitively

with branded products and services, which raises the quality of life.

The job given to me was to conduct a market survey and rearrange it geographically

for the convenience of distribution..

2. Availability is main strategy of the company. Comapany believes that if you make

available your product at each and every area then your sale will be definitely

increase.

3. While doing every dealer survey I identify the new outlets with existing outlets on

a particular route and rearrange it in a logical sequence and define a new route where

service provider can easily distribute the product.

4. On the basis of data collection of new routes for particular area is identified and

suggested to distributor to go through that arranged route and use new list of retailers.

5. Coca-Cola has got a very strong distribution network; it should try to penetrate

the market supply.

6. Company records all this data for its database and follows new arrangements for

sale.

7. Thumps-Up is the largest selling drink of Coca Cola in Nasik, Contributes to

almost 40% than other products as it is consumed almost in all the Bars.

8. Thums-Up and Sprite are the most commonly demanded products of Coca Cola in

Nasik, which contribute to 40% and 25% respectively as against its other products.

9. 300 ml RGB pack is the most commonly demanded pack of Coca Cola India in

Nasik, which contributes to almost 30% as against its other packs.

10. Mostly 70% market is found to be Monopoly market of Coca-Cola as compared

with the Pepsi.

11. Eating and Drinking (E&D) outlets have 40% share as compared with Grocery,

Convenience, and other outlets.

12 .Coca Cola also provides soft drinks to Cyber cafes, Tea stalls, juice centers, ice

cream parlors and Pan Centers, which are known as its small customers, but have

considerably increased its customer base, and coca-cola is recognized almost

everywhere in the market.

13 .Coca-Cola appoint the Market Developers (MD) who goes daily to the market

and do his work of display the cold drink in outlets and to maintain the purity of

cooler which help to increase the sale by display.

14 .Eating and Drinking (E&D) outlets have 40% share as compared with Grocery,

Convenience, and other outlets.

BIBLIOGRAPHY
 Books:

1) Rajan Saxena 2007, Marketing Management, Tata McGraw Hill New

Delhi.

Websites

1. www.coca-cola.com

2. www.hindustancoca-cola.com

3. www.coca-colaindia.com

4. www.coca-colawickepedia.com

APPENDICES:

Hindustan COCA COLA Beverages Pvt. Ltd., Nasik

Outlet Name: - Distributor Name:-

Contact Person: - Contact No.:-

Address: - Location: - Landmark:-

1) Type of Outlet:-
a) END
b) Grocery
c) Convenience
d) Others

2) Existing or New outlets:-

a) Existing outlet
b) New outlet

3) What is the frequency of the service provider visit in a week?

a) 1
b) 2
c) 3

4) What is the frequency of service do you expect?

a) Twice
b) Daily
c) Alternate day

5) What is the sale of crates per week?

a) 0-10
b) 11-20
 c) 21-30
d) 31-40

6) What do you think about the promotional activities of the company?

a) Good
b) Average
c) Poor

7) Are you satisfied with the distributor service?

a) Yes
b) No

8) Market share analysis with competitors.

a) Coca- cola
b) Pepsi
c) Other

9) Which product of coca cola company is sold the most?

a) Thumps Up
b) Coca cola
c) Sprite
d) Mazaa
e) Fanta
f) Limca

10) Visicooler availability in outlet - (Product cooling Equipment)

a) Coca cola
b) Pepsi
c) Both
 d) None

11) Which mineral water sold most?

a) Kinley
b) Bailey
c) Aquafina
d) Oxyrich
e) Bisleri
f) Local Brand

12) Expectations of Outlets from Company?

a) cash discount

b) credit system

c) Point earned on achieving targets