Documente Academic
Documente Profesional
Documente Cultură
on
New product Development
&
Right Execution Daily
At
HINDUSTAN COCA-COLA BEVERAGES PRIVATE LTD,
NAJIBABAD BIJNOR U.P
Submitted by:
Sanjeev kumar
ROLL No. 0903270058
Department of Management
ABES ENGINEERING COLLEGE GHAZIABAD
1
AFFILIATED TO
UTTAR PADESH TECHNICAL UNIVERSITY, LUCKNOW
2
ACKNOWLEDGMENT
This project bears the imprint of many people who were either directly or inderctly involved in the
COLLEGE GHAZIABAD, under the supervision of Ms. AJAY SINGH for giving me the
opportunity to work on a project. I am thankful to Mr. Deep Kamal Khurana (A.S.M) for assigning
me this project and also help me to handle the project.I would also thankful to my Area Sales
Executive Mr. NAVNEET BAHUGUNA sales executive for help me this project. Last but not least,
DATE.
3
DECLARATION
GHAZIABAD (affiliated to Gautam Buddh Technical University, Lucknow ) hereby declare that
the Work which is being presented in this report entitled “NEW PRODUCT DEVELOPMENT &
RED (RIGHT EXICUTIV DAILY) IS an authentic record of my/own work carried out under the
The matter embodied in this report has not been submitted by me/us for the award of any other
degree.
(MBA)
4
INDEX
ACKNOWLEDGEMENT 2
DECLARATION 3
INTRODUCTION 5
• A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA 6
• MISSION 9
• INTRODUCTION 12
• HISTORY 13
• PRODUCTION 14
• LOCAL COMPETITORS 24
• ADVERTISING 25
• PLANT PROFILE 37
• PRODUCT OF A COMPANY 38
• QUALITY ASSURANCE. 56
• TRANSPORTATION 58
5
NEW PRODUCT DEVELOPMENT & RIGHT
EXECUTION DAILY 61
• BASIS OF NEW PRODUCT DEVELOPMENT 61
FINDING ANALYSIS 87
• SWOT ANALYSIS. 87
FIELD EXPERIENCE 88
RECOMMENDATIONS 106
CONCLUSION 108
BIBLOGRAPHY 109
INTRODUCTION
6
A BRIEF INSIGHT-
THE FMCG INDUSTRY IN INDIA: -
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are
products that have a quick turnover and relatively low cost. Consumers generally put less thought
The Indian FMCG industry witnessed significant changes through the 1990s. Many players
had been facing severe problems on account of increased competition from small and regional
players and from slow growth across its various product categories. As a result, most of the
companies were forced to revamp their product, marketing, distribution and customer service
By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian customer
witnessed an increasing exposure to new domestic and foreign products through different media,
such as television and the Internet.Though the absolute profit made on FMCG products is relatively
small, they generally sell in large numbers and so the cumulative profit on such products can be
large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer
from mass layoffs every time the economy starts to dip. A person may put off buying a car but he
will not put off having his dinner.Unlike other economy sectors, FMCG share float in a steady
manner irrespective of global market dip, because they generally satisfy rather fundamental, as
opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth
largest sector in the Indian Economy and is worth Rs.93000 Crores. The main contributor, making up
32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector
will be worth Rs.143000 Crores. The sector being one of the biggest sectors of the Indian Economy
7
BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT
In India, beverages form an important part of the lives of people. It is an industry, in which the
players constantly innovate, in order to come up with better products to gain more consumers and
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-Carbonated
8
BEVERAGE INDUSTRY IN INDIA
The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
• Age wise segmentation i.e. 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.
• The credibility and trust needs to be built so that there is a very strong and safe feeling that
• Communication should be relevant and trendy so that consumers are able to find an appeal to
The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and
sales growth in turn to add up to the overall growth of the food and beverage industry in the
economy.
9
THE CREATOR OF COCA COLA
MISSION
10
CHAPTER 2: THE COCA COLA COMPANY
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia,
on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor
of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. In
addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company
began building its global network in the 1920s. Now operating in more than 200 countries and
producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a
global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. The Company aims at increasing
shareowner value over time. The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Company’s assets and resources whilst
limiting business risks. Coca-Cola is made up of 7000 local employees, 500 managers, over 60
Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture
process of a range of products for the company. It also has a supporting distribution network
consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to
cater to the Indian market are made locally, with help of technology and skills within the Company.
market is reflected in the distribution fleet, which includes different modes of distribution, from 10-
tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities
11
COBO
FOBO
CONTRACT PACKAGING
12
COCA COLA
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines in
more than 200 countries. It is produced by The Coca-Cola Company 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, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing
tactics led Coke to its dominance of the world soft drink market throughout the 20th century.
The company actually produces concentrate, which is then sold to various licensed Coca-Cola
bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination with
filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans
and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which
is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola
Company also sells concentrate for fountain sales to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke
brand name. The most common of these is Diet Coke, which has become a major diet cola. However,
others exist, including Diet Coke Caffeine-Free, Cherry Coke, Coca-Cola Zero, Vanilla Coke and
special editions with lemon and with lime and even with coffee.
In response to consumer insistence on a more natural product, the company is in the process
of phasing E211 or Sodium Benzoate, the controversial additive linked to DNA damage and
hyperactivity in children, out of Diet Coke. The company has stated that it plans to remove the
controversial additive from its other products - including Sprite, and Oasis - as soon as a satisfactory
alternative is discovered.
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History
The first Coca-Cola recipe was invented in Columbus, Georgia at a drugstore by John Stith
Pemberton, originally as a cocawine called Pemberton's French Wine Coca in 1885. He may have
been inspired by the formidable success of European Angelo Mariani's cocawine, Vin Mariani.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
Cola.
The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886 It was initially
sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United
States at the time due to the belief that carbonated water was good for the health Pemberton claimed
Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache,
and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in
the Atlanta Journal. For the first eight months only nine drinks were sold each day.[citation needed]
By 1888, three versions of Coca-Cola — sold by three separate businesses — were on the
market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as
the Coca Cola Company in 1888 The same year, while suffering from an ongoing addiction to
morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O.
Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley
In an attempt to clarify the situation, John Pemberton declared that the name Coca-Cola
belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the
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summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed
to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his
two competitors out of the business. Candler purchased exclusive rights to the formula from John
Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim
her signature on the bill of sale had been forged, and subsequent analysis has indicated John
In 1892, Candler incorporated a second company, The Coca-Cola Company (the current
corporation), and in 1910, Candler had the earliest records of the company burned, further obscuring
its legal origins. Regardless, Candler began marketing the product, although the efficacy of his
concerted advertising campaign would not be realized until much later. By the time of its 50th
anniversary, the drink had reached the status of a national icon for the USA. In 1935, it was certified
kosher by Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some
ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. Cans of Coke first
appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the
Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles
were Biedenharn bottles, very different from the much later hobble-skirt design that is now so
familiar.
Asa Candler was tentative about bottling the drink, but the two entrepreneurs who proposed
the idea were so persuasive that Candler signed a contract giving them control of the procedure.
However, the loosely termed contract proved to be problematic for the company for decades to come.
Legal matters were not helped by the decision of the bottlers to subcontract to other companies—in
Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities,
15
New Coke
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the
drink with "New Coke." Follow-up taste tests revealed that most consumers preferred the taste of
New Coke to both Coke and Pepsi. Coca-Cola management was unprepared, however, for the
nostalgic sentiments the drink aroused in the American public. The new Coca-Cola formula caused a
public backlash. Protests caused the company to return to the old formula under the name Coca-Cola
21st century
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they
planned a launch of a Diet Coke product sweetened with the artificial sweetener sucralose
("Splenda"), the same sweetener currently used in Pepsi One On March 21, 2005, it announced
another diet product, "Coca-Cola Zero", sweetened partly with a blend of aspartame and acesulfame
potassium Recently Coca-Cola has begun to sell a new "healthy soda" Diet Coke with Vitamins
B6, B12, Magnesium, Niacin, and Zinc, marketed as "Diet Coke Plus".
On July 05, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time
since the Arab League boycotted the company in 1968. In April 2007, in Canada, the name "Coca-
Cola Classic" was changed back to "Coca-Cola". The word "Classic" was truncated because "New
Coke" was no longer in production, eliminating the need to differentiate between the two. The
When launched Coca Cola's two key ingredients were cocaine (benzoylmethyl ecgonine) and
caffeine. The cocaine was derived from the coca leave and the caffeine from kola nuts - Coca-Cola
16
Coca - Cocaine
Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose, whereas,
in 1891, Candler claimed his formula (altered extensively from Pemberton's original) contained only
a tenth of this amount. Coca Cola did once contain an estimated nine milligrams of cocaine per glass,
but in 1903 it was removed Coca Cola still contains coca flavoring.
After 1904, Coca Cola started using, instead of fresh leaves, "spent" leaves - the leftovers of
the cocaine-extraction process with cocaine trace levels left over at a molecular level. To this day,
Coca Cola uses as an ingredient a cocaine free coca leaf extract prepared at a Stepan Company plant
In the United States, Stepan Company is the only manufacturing plant authorized by the
Federal Government to import and process the coca plant Stepan laboratory in Maywood, N.J., is the
nation's only legal commercial importer of coca leaves, which it obtains mainly from Peru and, to a
lesser extent, Bolivia. Besides producing the coca flavouring agent for Coca Cola, Stepal Company
extracts cocaine from the coca leaves, which it sells to Mallinckrodt Inc, a St. Louis pharmaceutical
manufacturer that is the only company in the United States licensed to purify cocaine for medicinal
use N.J. Stepan buys about 100 metric tons of dried Peruvian coca leaves each year, said Marco
Kola nuts act as a flavouring in Coca Cola, but is also the beverage's source of caffeine. In
Britain, for example, the ingredient label states "Flavourings (Including Caffeine)". Kola nuts
contains about 2 to 3.5 percent caffeine, is of bitter flavour and is commonly used in cola soft drinks.
In 1911 The US government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola,
hoping to force Coca Cola to remove caffeine from its formula. The case was decided in favour of
17
Coca Cola. Subsequently, in 1912 the US Pure Food and Drug Act was amended, adding caffeine to
the list of "habit-forming" and "deleterious" substances which must be listed on a product's label.
Coca Cola contains 46 mg/12 fl oz of caffeine, while Diet Coke Caffeine-Free contains 0 mg.
Caffeine may be used by athletes as ergogenic aid - to increasing the capacity for mental or physical
labor. The ergogenic qualities of caffeine are contested, although there is strong evidence that it may
significantly enhance endurance performance. For this reason, caffeine is listed as a restricted
substance by the International Olympic Committee (IOC). Nevertheless Coca Cola was the leading
The exact formula of Coca-Cola is a famous trade secret. The original copy of the formula is held in
SunTrust Bank's main vault in Atlanta. Its predecessor, the Trust Company, was the underwriter for
the Coca-Cola Company's initial public offering in 1919. A popular myth states that only two
executives have access to the formula, with each executive having only half the formula] The truth is
that while Coca-Cola does have a rule restricting access to only two executives, each knows the
entire formula and others, in addition to the prescribed duo, have known the formulation process.
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
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) and Coca-
Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world.
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Since independent bottlers add sugar and sweeteners, the sweetness of the drink differs in various
19
Brand portfolio
Launche Discontinue
Name Notes
d d
Coca-
1886
Cola
Coca-
Cola 1985
Cherry
Still available in:
American Samoa, Austria,
Australia, Belgium, Brazil,
China, Denmark, Federation
of Bosnia and Herzegovina,
Finland, France, Germany,
Coca- Hong Kong, Iceland, Korea,
Cola with 2001 2005 Luxembourg, Macau,
Lemon Malaysia, Mongolia,
Netherlands, Norway,
Philippines, Reunion,
Singapore, South Africa,
Spain, Sweden, Switzerland,
Taiwan, Tunisia, United
States, and West Bank-Gaza
Still available in: Austria,
Australia, China, Germany,
Coca- 2002 2005 Hong Kong, South Africa,
Cola New Zealand (600ml and 350
Vanilla ml only) and Russia
It was reintroduced in June
2007
2007 by popular demand
Was only available in Japan,
Coca-
2004 2007 Canada, and the United
Cola C2
States.
Coca- 2005 Still available in Belgium,
Cola with Singapore
20
Lime
Coca-
June Was only available in New
Cola End of 2005
2005 Zealand.
Raspberry
Only available in Federation of
Coca- Bosnia and Herzegovina,
2005
Cola M5 Germany, Italy, Spain, Mexico
and Brazil
Coca-
Cola
Middle of Was replaced by Vanilla Coke
Black 2006
2007 in June 2007
Cherry
Vanilla
Only available in the United
States, France, Canada,
Coca- Beginning of
2006 Czech Republic, Federation of
Cola Blāk 2008
Bosnia and Herzegovina,
Bulgaria and Lithuania
Only available in Federation of
Coca-
2006 Bosnia and Herzegovina, New
Cola Citra
Zealand and Japan.
Coca-
Only available in France and
Cola Light 2006
Belgium.
Sango
Coca-
Only available in United
Cola- 2007
Kingdom
Orange
Fanta
2009 Available in India
Apple
Robinson, in 1885 It was Robinson who came up with the name, and he also chose the logo’s
distinctive cursive script. The typeface used, known as Spencerian script, was developed in the mid
21
19th century and was the dominant form of formal handwriting in the United States during that
period.
Earl R.Dean's original 1915 concept drawing of the contour Coca-Cola bottle
Dean reduced the middle diameter...and the famous Contour Coca-Cola Bottle was born.
The prototype never made it to production since its middle diameter was larger than its base.
The equally famous Coca-Cola bottle, called the "contour bottle" within the company, but
known to some as the "hobble skirt" bottle, was created in 1915 by bottle designer, Earl R. Dean. In
1915, the Coca-Cola Company launched a competition among its bottle suppliers to create a new
bottle for the beverage that would distinguish it from other beverage bottles... "a bottle which a
person could recognize even if they felt it in the dark, and so shaped that, even if broken, a person
could tell at a glance what it was" Chapman J. Root, president of the Root Glass Company, turned
the project over to members of his supervisory staff including company auditor T. Clyde Edwards,
plant superintendent Alexander Samuelsson and Earl R. Dean, bottle designer and supervisor of the
Root and his subordinates decided to base the bottle’s design on one of the soda’s two
ingredients, the coca leaf or the cola nut, but were unaware of what either ingredient looked like.
Dean and Edwards went to the Emeline Fairbanks Memorial Library and were unable to find any
information about coca or cola. Instead they were inspired by a picture of the gourd-shaped cocoa
22
pod in the Encyclopædia Britannica which Chapman Root approved as the model for the prototype.
[39]
Faced with the upcoming scheduled maintenance of the mold-making machinery, over the
next 24 hours Dean sketched out and created the mold for the bottle. Dean then molded a small
Chapman Root approved the prototype bottle and a design patent was issued on the bottle in
November, 1915. The bottle was chosen over other entries at the bottler’s convention in 1916 and
was on the market the same year. By 1920, Dean’s contoured bottle became the standard for the
Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the most recognized packages
As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job
at the Root Glass Company. He chose the lifetime job and kept it until the Owens-Illinois Glass
Company bought out the Root Glass Company in the mid 1930s. Dean went on to work in other
Although endorsed by some, this version of events is not considered authoritative by many
who cite its implausibility as difficult to believe. One alternative depiction has Raymond Loewy as
the inventor of the unique design, but although Loewy did serve as a designer of Coke cans and
bottles in later years, he was in the French Army in the year the bottle was invented and did not
migrate to the United States until 1919. Others have attributed inspiration for the design not to the
In 1997, Coca-Cola also introduced a "contour can", similar in shape to their famous bottle,
on a few test markets, including Terre Haute, Indiana. This new can was however never widely
released.
23
A new slim and tall can has begun to appear in Australia as of December 20, 2006, which
costs an average of $2AUD. The cans have a distinct resemblance to energy drinks that are popular
with the teenage demographic. It is unknown if this design is of limited edition or may soon replace
the current 355 ml cans that have been used in the past (the new slim cans are 300 ml, making the
In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labelling, removing the
"Classic" designation, leaving only "Coca-Cola". Coca-Cola stated this is merely a name change and
the product remains the same. The cans still bear the "Classic" logo in the United States.
Coca-Cola is a registered trademark in most countries around the world and should always be
written with the hyphen and not as "Coca Cola". The US trademark was registered in the United
States Patent Office on 31 January 1893. In the UK Coca-Cola was registered with the UK Patent
In 2007, Coca-Cola introduced an aluminum can that is designed to look like the original
In 2007, the Coca-Cola logo on cans and bottles has changed, retaining the red color and
familiar typeface but taking branding back in time by removing much of the clutter on the can,
leaving only the logo and a plain white swirl-- the "dynamic ribbon".
In 2008, the Coca-Cola plastic bottles for all Coke varieties was changed with a new plastic
screw cap and contoured bottle shape designed to evoke the old glass bottles.
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Local competitors
Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities.
Around the world, some local brands do compete with Coke. In South and Central America, Kola
Real, known as Big Cola in Mexico, is a fast growing competitor to Coca-Cola On the French island
of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-
Cola. In the French region of Bretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-
Cola. However, The Coca-Cola Company purchased the brand in 1999. In Sweden, Julmust outsells
Coca-Cola during the Christmas season. In Scotland, the locally-produced Irn-Bru was more popular
than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its salesIn India, Coca-
Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-
Cola Company purchased Thums Up in 1993 As of 2004, Coca-Cola held a 60.9% market-share in
India Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in which there exists a
United States embargo. Mecca Cola and Qibla Cola, in the Middle East, is a competitor to Coca-
Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and also many countries of
Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of
China, Future cola can be bought. In Slovenia, the locally-produced Cockta is a major competitor to
Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's biggest
supermarket chain, Mercator. In Madagascar, Classiko Cola, made by Tiko Group, the largest
manufacturing company in the country, is a serious competitor to Coca-Cola in many regions. On the
Portuguese island of Madeira, Laranjada is the top selling soft drink. In the UK Coca-Cola stated that
Pepsi was not its main rival, but rather Robinsons drinks.
25
Advertising
An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The ad
Coca-Cola's advertising has had a significant impact on American culture, and is frequently
credited with the "invention" of the modern image of Santa Claus as an old man in red-and-white
garments; however, while the company did in fact start promoting this image in the 1930s in its
winter advertising campaigns, it was already common before that. In fact, Coca-Cola was not even
the first soft drink company to utilize the modern image Santa Claus in its advertising – White Rock
Beverages used Santa in advertisements for its ginger ale in 1923 after first using him to sell mineral
water in 1915 .
Before Santa Claus, however, Coca-Cola relied on images of smartly-dressed young women
to sell its beverages. Coca-Cola's first such advertisement appeared in 1895 and featured a young
In the 1970s, a song from a Coca-Cola commercial called "I'd Like to Teach the World to
Coca-Cola has a policy of avoiding using children younger than the age of 12 in any of its
advertising. This decision was made as a result of a lawsuit from the beginning of the 20th century
that alleged that Coke's caffeine content was dangerous to children. However, in recent times, this
has not stopped the company from targeting young consumers.[citation needed]
Coke's advertising is rather pervasive, as one of Woodruff's stated goals was to ensure that
everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern
areas of the United States, such as Atlanta, where Coke was born.
26
Some of the memorable Coca-Cola television commercials between 1960 through 1986, were
written and produced by former Atlanta radio veteran Don Naylor (WGST 1936-1950, WAGA 1951-
1959) during his career as a producer for the McCann Erickson advertising agency. Many of these
early television commercials for Coca-Cola featured movie stars, sports heroes, and popular singers
of the day.
During the 1980s, Pepsi-Cola ran a series of television advertisements showing people
participating in taste tests essentially demonstrating that: "Fifty percent of the participants who said
they preferred Coke actually chose the Pepsi". Statisticians were quick to point out the problematic
nature of a 50/50 result; that most likely all this really showed was that in blind tests, most people
simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's ads
in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi
challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola regained
Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed
three commercials for the company. In 1994 to commemorate her 5 years with the company, Coca-
Columbia provided subtle publicity through Coke product placements in many of its films while
under Coke's ownership. However, after a few early successes, Columbia began to under-perform,
Coca-Cola has gone through a number of different advertising slogans in its long history,
including "The pause that refreshes", "I'd like to buy the world a Coke", and "Coke is it" (see Coca-
Cola slogans).
27
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where
consumers earn virtual "points" by entering codes from special marked packages of Coca-Cola
products into a website. These points can in turn be redeemed for various prizes or sweepstakes
entries
Coca-Cola was the first-ever sponsor of the Olympic games, at the 1928 games in Amsterdam
and has been an Olympics sponsor ever since.] This corporate sponsorship included the 1996
Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Since
1978 Coca-Cola has sponsored each FIFA World Cup and other competitions organised by FIFA. In
fact, one of the FIFA tournament trophy: FIFA World Youth Championship from Tunisia in 1977 to
Malaysia in 1997 was called "FIFA - Coca Cola Cup". [54] In addition, Coca-Cola sponsors the annual
Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at Lowe's Motor Speedway
in Charlotte, North Carolina and Daytona International Speedway in Daytona, Florida. Coca-Cola
has a long history of sports marketing relationships, which over the years have included Major
League Baseball, the National Football League, National Basketball Association and the National
Hockey League, as well as with many teams within those leagues. Coca-Cola is the official soft drink
In India Coca Cola was the one of the official Sponsors of the 1996 Cricket World Cup.
In England, Coca-Cola is the main sponsor of The Football League, a name given to the three
professional divisions below the Premier League in football (soccer). It is also responsible for the
renaming of these divisions- until the advent of Coca-Cola sponsorship, they were referred to as
Divisions One, Two and Three. Since 2004, the divisions have been known as The Championship
(equiv. of Division 1), League One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This
renaming has caused unrest amongst some fans who see it as farcical that the third tier of English
Football is now called "League One." In 2005 Coca-cola launched a competition for the 72 clubs of
28
the football league - it was called "Win a Player". This allowed fans to place 1 vote per day for their
beloved club, with 1 entry being chose at random earning £250,000 for the club. This was repeated in
2006. The "Win A Player" competition was very controversial, as at the end of the 2 competitions,
Leeds United AFC had the most votes by more than double, yet they did not win any money to spend
on a new player for the club. In 2007 the competition changed to "Buy a Player". This competition
allowed fans to buy a bottle of Coca-Cola Zero or Coca-Cola and submit the code on the wrapper on
the Coca-Cola website {www.coca-colafootball.co.uk}. This code could then earn anything from 50p
to £100,000 for a club of their choice. This competition was favoured over the old "Win A Player"
competition as it allowed all clubs to win some money, instead of all the money going to one
winning club.
29
ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA
30
Region Vice
President
AGM/AOD
Unit 1
AGM/AOD
Unit 2
AGM/AOD
Unit 3
AGM/AOD
Unit4
Region Finance
Region Legal
Region BSG
Region Director/Manager
Market Execution
Region Capability
Region Channel
Management
31
Coca Cola Channel Marketing and Profits
Coca Cola has managed their company marketing and sales strategy within channels. Have
you ever considered the significance of the Coke vending machine to the success.
and profitability of the Coca Cola company? This channel is direct to consumer and vending
machines often have little to no competition and no trade or price promotions. Develop solutions for
groups of customers and deploy your benefit throughout the channel as compared to forcing a broad
For many food companies, the answer to this single question can point to sizeable new profits and
opportunities for growth via adding new sales channels and opening new markets with profits and
speed.
The Coke Company operates three primary delivery systems for its business channels:
• Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and
Club stores;
• For smaller channels Coke does advanced sale delivery for convenience
Supermarkets
32
• Convenience Stores
• Fast Food
• Petroleum Retailers
• Chain Drug Stores
• Hotels/Motels/Resorts
• Mass Merchandisers
• U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and DECA
• Vending
If you noticed the growth of tractor trailer deliveries by Coke into C-Stores and other channels in the
past year or so, you noticed their new delivery scheme. In 2006, the Company began changing its
delivery method for its route delivery system. Historically, the Company loaded its trucks at a
warehouse with products the route delivery employee would deliver. The delivery employee was
responsible for pulling the required products off a side load truck at each customer location to fill the
customer's order. Coke began using a new CooLift® delivery system in 2006 in a portion of the
Company's territory which involves pre-building orders in the warehouse on a small pallet the
delivery employee can roll off a truck directly into the customer's location. The CooLift® delivery
system involves the use of a rear loading truck rather than a conventional side loading truck. Coke
anticipates the implementation of this delivery system will continue over the next several years. This
rollout required additional capital spending for the rear loading delivery vehicle. The Company
anticipates that this change in delivery methodology will result in significant savings in future years
Criticisms
It has been suggested that some of the information in this article's Criticism or Controversy
The Coca-Cola Company has been criticized for its business practices as well as the alleged
adverse health effects of its flagship product. A common criticism of Coke based on its allegedly
toxic acidity levels has been found to be baseless by researchers; lawsuits based on these criticisms
[the] American diet,"] most nutritionists advise that Coca-Cola and other soft drinks can be harmful if
consumed excessively, particularly to young children whose soft drink consumption competes with,
rather than complements, a balanced diet. Studies have shown that regular soft drink users have a
lower intake of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A The drink has also
aroused criticism for its use of caffeine, due to the possibility of physical dependence A link has been
shown between long-term regular cola intake, of which Coca-Cola is the most consumed brand
worldwide, and osteoporosis in older women (but not men)This was thought to be due to the
presence of phosphoric acid, and the risk was found to be same for caffeinated and noncaffeinated
Although numerous court cases have been filed against The Coca-Cola Company since the
1920s, alleging that the acidity of the drink is dangerous, no evidence corroborating this claim has
been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no
immediate harm.
There is also some concern regarding the usage of high fructose corn syrup in the production
of Coca-Cola. Since 1985 in the U.S., Coke has been made with high fructose corn syrup, instead of
sugar glucose or fructose, to reduce costs. This has come under criticism because of concerns that the
corn used to produce corn syrup may come from genetically altered plants. Some nutritionists also
caution against consumption of high fructose corn syrup because of possible links to obesity and
type-2 diabetes.
In India, there exists a major controversy concerning pesticides and other harmful chemicals
in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a
non-governmental organization in New Delhi, said aerated waters produced by soft drinks
manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins
including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer and a
34
breakdown of the immune system. Tested products included Coke, Pepsi, and several other soft
Coca-Cola Company. CSE found that the Indian produced Pepsi's soft drink products had 36 times
the level of pesticide residues permitted under European Union regulations; Coca-Cola's soft drink
was found to have 30 times the permitted amount. CSE said it had tested the same products sold in
the US and found no such residues. After the pesticide allegations were made in 2003, Coca-Cola
sales declined by 15%. In 2004, an Indian parliamentary committee backed up CSE's findings, and a
government-appointed committee was tasked with developing the world's first pesticide standards for
soft drinks. The Coca-Cola Company has responded that its plants filter water to remove potential
contaminants and that its products are tested for pesticides and must meet minimum health standards
before they are distributed.[63] In the Indian state of Kerala, sale and production of Coca-Cola, along
with other soft drinks, was initially banned, before the High Court in Kerala overturned the ban
ruling that only the federal government can ban food products. Coca-Cola has also been accused of
35
CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PVT. LTD.
NAJIBABAD
Najibabad plant (the company) is spread over an area of about 50 thousand square meter. The
plant was established in 1983 as Mansarover Bottling Company Ltd.This plant was a franchise
As per the BIFR ruling ,coca-cala took over this plant on 14th feb and absorbed all the 275 permanent employees .
The only major change in the operational set up was the appointment of a General manager and
a Finance Manager . This change led to a certain amount of distrust and uncertainty among the
employees.This feeling was further strengthened ,when certain employees who in the past were
high in the hierarchy were left with limited authority and responsibility .A chage in the
• Thums UP
• Sprit
• Fanta
• Maaza
• Kinley Soda
• Limca
The plant procures the concentrate required for producing the soft drinks from Pune .The cans and
the pet bottles for all the soft drink and procured from Pune and Ghaziabad. The plant produces both
300 ml and 200ml of Coke. Coca-cola India has also introduced Maaza tetra packs that are produced
36
Capacity of the plant
The product is seasonal in nature thus the production depends upon the seasons . The peak season
The plant has three bottling lines. Two bottling lines produced aerated drinks and the line produces a
The number of hours the machines woks depends upon the season and the demand .During the peak
But during the non peak season the plant is closed down for maintenance from the month of
November till January .Other than this ,the plant is operated according to market demand.
37
ORGANIZATION STRUCTURE OF THE SALES
DEPARTMENT IN HCCBPL
AGM/AOD
Human General
Plant Route to Resource Finance Sales
Manager Market Manager Manager Manager
Area
Area Capabilit
Channel
Sales y
Manager
Manager Manager
Market
Key
Develope
Accounts
r
Distributor
s
And
Salesmen
38
MARKETING MIX OF H.C.C.B.P.L
The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit
juices and bottled mineral water. The Company is always looking to innovate and come up with,
either complete new products or new ways to bottle or pack the existing drinks. The Coca-Cola
Company has a wide range of products out of which the following products are marketed by
HCCBPL :
Products of Company
THUMS UP
Thumps up is the leading carbonated soft drink and trusted brand in India. Originally introduced
in 1977 it was acquired by the Coca-Cola Company in 1993. It is known for its strong fizzy taste
and it’s confident, mature and uniquely masculine attitude. This brand clearly seeks to separate
It has dark brown color with very high content of CO2 which makes the Cola flavor is very
• 2lt bottle.
40
DIET COKE
Diet coke was born in 1982 and quickly became the No.1 sugar free drink in diet conscious America,
known as Diet coke in the U.S. ,Canada, Australia and great Britain and coca-cola light in other
countries ,it now the No.3 soft drink in the world.It,s the drink for people who want no calories ,but
plenty of taste. Ad campaigns around the world for diet coke share a playful, sophisticated and sexy
attitude.
Visit our Audio/Video center to witness how the Diet coke north American ad campaign celebrates
the real and human attributes that make people alluring in the eyes of others.
41
Coca- Cola
Cola-cola is the most popular and biggest selling soft drink in history, as well as the best known
product in the world. Created by Dr.John.S.Pemberton, Coca-cola was first offered as fountain
beverages by mixing Coca-cola syrup with Carbonated water. Coca-cola was registered as a
trademark in 1895.Coca-cola was being sold in every state and territory in the united state. In 1899,
Today, you can find coca-cola in virtually every part of the world and the coca-cola company has
42
Volumes of the Coca- Cola
It has brown color with very high content of CO2 which makes the Cola flavor is very strong .It
• 330 ml can.
43
In the Lemon Section
SPRITE
Introduced in 1960,Sprite is the world,s leading lemon lime flavored soft drink .sprite is sold
in more than 190 countries and ranks as the No.4 soft drink worldwide with a strong appeal to young
people.Millions of people enjoy Sprite because of its crisp ,clean taste that really quenches your thirst
.But also has an honest ,straightforward attitude about things that sets it apart from others soft drinks.
Sprite encourages you to be true to who are and to obey your thirst.
44
Volumes of the Sprite
It is color less with packing in green coloured bottle. It has content of CO2 .It is available in
• 350 ml expresspack.
• 330 ml can.
• 2.lt petbottle.
LIMCA
This thirst quenching beverages features a fresh, light lemon –lime taste and fun –loving
attitude. It’s a homegrown, national treasure in India, where the Coca-cola co. acquired it in 1993 the
product’s invigoration taste and cloudy look haven’t changed, but the brand has been revitalized with
a new marketing campaign. Limca continues to build a loyal following among young adults who love
the lighthearted way it compliments the best moments of their lives. It’s also become a hit in many
45
Volumes of the LIMCA
It is light grey color. It has content of CO2 that makes its flavour tasty.It is available in different
• 350 ml expresspack.
• 330 ml can.
• 2Lt petbottle.
The new Minute Maid Nimbu Fresh is a truly refreshing lemon juice-based drink with no added
preservative or added color. The latest offering is a lemon juice-based drink from the Coca-Cola
Company's (TCCC) stable developed especially for consumers in India. Minute Maid Nimbu Fresh is
made out of great quality fresh lemon juice concentrate, providing consumers with a great refreshing
46
• In the Orange section:
FANTA
The coca-cola company acquired a favorite in Europe since the 1940 Fanta in 1960. Fanta orange is
the core flavor , representing about 70% of sales, but other citrus and fruit flavors have their own
Consumers around the world, particularly teens ,fondly associate FANTA with happiness and special
times with friends and family. This positive imagery is driven by the brand’s fun playful personality
,which goes hand in hand with the bright color,bold fruit taste, and tingly carbonation.Fanta sells best
in Brazil,Germany,Spain ,Japan, Italy and Argentina. Fanta distribution was increased in the U.S. in
2001 with the return of four flavor: Orange , Strawberry,Pineapple, and Grape.
Orange ,the biggest seller ,is now available in most of the country.
It comes many flavors like orange. It has content of CO2 that makes its flavor tasty. It is
• 330 ml can.
47
• 600 ml pet bottle.
• 2 Lt pet bottle
48
In the Juice section:
MAAZA
It is a real fruit taste Kids love ,plus added calcium Maaza tagline “Yaari Dosti Taaza
Maaza” means “Friendship moments with fresh Maaza” in hindi . MAaza was introduced in India in
1984 as a no carbonated mango fruit drink .It was acquired by the Coca-cola Co. in 1993 and is
currently available in three flavors, mango, pineapple And orange plus added calcium.
It is of yellow color with decent taste of mango .It doesn’t contain CO2 .It is available in different
49
MINUTE MAID
PULPY ORANGE
Mnute made pulpy orange , which is haired by the coca-cola company and now its manufacturing in
It is actually a Minute made pulpy orange , which is very easy to prepare by mixing water in it
50
In the Soda Water and Bottled Mineral Water section:
This is thirst –Quenching beverage features fresh the fresh water with the saturated oxygen level.
This is thirst – quenching beverages features a fresh and light oranges taste and a lighthearted
attitude.
51
KINLEY MINERAL WATER
Kinley Mineral
Water
This is thirst –Quenching beverage features fresh the fresh water with the saturated oxygen level.
• 1 Lt ,pet bottle
• 2 Lt ,pet bottle
52
PACKAGING DETAILS
PAC MAAZ
COKE
THUM FANT SPRIT LIMC SOD
K A SUP A E A A
200M
L YES YES YES YES YES YES NO
250M
L
YES NO NO NO NO NO NO
2
LTR
NO YES YES YES YES YES NO
600M
L
YES YES YES YES YES YES YES
1.2
LTR YES NO NO NO NO NO NO
1.
25LT YES YES YES YES YES YES NO
R
53
PACK NO.OF BOTTLES IN A CASE
300ML 24
200ML 24
250ML 24
2 LITRES 9
600mL 24
1.2 LTR 12
1 .25 LTR 12
PRICE DETAILS
54
EXPLANATION OF MANUFACTURING PROCESS
1. Water passes through the water treatment plant, further passing through the sand filter and the
2. In the syrup room, the concentrate is blended with the sugar syrup
3 .Once both the water and the final syrup are ready, they are both mixed together and sent to the
carbonator section where Carbon Dioxide is added to the mixture to form the final product.
4. On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and
washed for the purpose of filling in the final product in it. This step does not take place in the PET
5. The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET
bottles), labeled and cased in order to be sent into the warehouse for distribution.
55
Manufacturing Plant
Baddi (HP)
Distribution
OUT LETS
56
CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION
not only concerned with individual department like production of goods but it is concerned with every
functioning of the organization such as hygiene in the organization like providing the nutrias food from
the canteen , cleanliness in the bathrooms ,not polluting the environment etc.
One of the major function of QA department is pre and post manufacturing tests which ensures
zero defect so that consumers can get right quantity and quality of products .All the procured materials
have to undergo a rigorous quality check. Even before procurement the quality of the material has been
Objectives :
• Total cost-: The first and foremost objectives is to bring down overall cost. The costs
involved in Logistics Operations-
a) Transportation of supplies to the plant and distribution of finished goods through
distribution system.
b) Processing customers orders.
c) Packaging.
d) Providing customers services.
e) Maintaining warehouse .
These functions are directly not responsible for sales . But they do support the sales activites . So
the total cost approach refers to evaluation of all logistics expanded for any given sales
revenue .By using the cost approach the manager would try to maintain total logistics cost as
compared to the historical performance of the firm and in comparison with other firms of the
same industry
a) On time delivery.
b) Proper handling of merchandise.
c) Quantity assembled should be according invoice.
d) On time service which includes after sales service, etc.
e)
DISTRIBUTION NETWORK
HCCBPL has a wide and well-managed network of salesmen appointed for taking up the
responsibility of distribution of products to diverse parts of the cities. The distribution channels are
constructed in such a way that the demand of customers is fulfilled at the right place and the right
Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail
The customers of the Company are divided into different categories and different routes, and
every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A
detailed and well-organized distribution system contributes to the efficiency of the salesmen. It also
leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.
58
TRANSPORTATION LOGISTICS
The distribution function has to perform two functions: it has to generates demand for the product
and secondly ,it has to make sure that demand thus created is matched by adequate and time
supply .While all the members of the channel will have to take part in dual function , the transporter
has primary responsibility .A logistics plan can be drawn by considering the following points:
• What are the alternatives modes of transport , viz .,road, rail, air, etc. Available for
transporting the goods from the point of manufacture to the point of purchase ?
• What is the mode which is optimal from the standpoint of total distribution cost?
• Is there any need for warehousing arrangements .keeping in view the products and marketing
characteristics.
In fact the first two are important enough to be considered even at the time of selection
of markets . The non- availability of required transportation facility can out weigh all other marketing
advantages that a company may have . The perishable nature of products demands that must reach
Therefore, unless the potential markets are served ,delivery of such time items cannot
be undertaken.
To consider the second aspect , namely selection of the appropriate mode of transport ,it is
necessary first to identify the elements that taken together constitute the total distribution costs. In a
study carried out in the US it is found that the total distribution costs are allocated over the various
• Administration 11.0%
• Transportation 29.4%
59
• Packaging 11.9%
• Warehouse 17.04%
The proportion obviously will vary from product to product ,but all the cost components, with sole
exception of warehousing ,will have to be considered for determining the total distribution costs of each
and every product.It is ,therefore obvious that the selection of the mode cannot be taken only on the basis
of the freight element, which at best will be only an important segment of total distribution costs .But the
decision will depend on the total incidence of costs for alternative modes of transport.In general the
criteria that should be taken in mind deciding on the proper modes of transport are cost speed
• Unit value – In general , direct sales preferred for items of high unit
• Technical nature-: Technologically complex and specialized products are usually sold
direct.
• Perish ablity_: The more perishable the product the shorter should be the channel leasing is
usually adopted for technological perishable products.
60
LOGISTICS IN COCA-COLA
• The company HCCBPL PVT LTD. Najibabad, does its business in full fledge between
March and June in western U.P. Approx 60% of the business of the year is done in these 4
months of period.
• The company 80% of business depends on Returnable Glass Bottles company always try to
receive same amount of empty bottles as it has been dispatched to distributers because if the
organization will not do so then its production will hamper and that ultimately effect the sale.
• Company always sends two-way vehicles instead of one-way vehicles .The concept of two-
way is that vehicle will distribute the full bottles and return by taking empty bottles from
them.
• The one-way vehicles cost much higher than two-way vehicles are also returned to enable
further production
This is beneficial for both company and distributor because company gives glass bottles and
crates on loan to distributors and their money is receiving the bottles in the plant.
• The company pays freight according to distance and load . It has a policy of paying
freight according to load slabs & destination.
61
NEW PRODUCT DEVELOPMENT IN COCA-COLA :
Product development is the process of designing, creating, and marketing an idea or product. The
product can either be one that is new to the marketplace or one that is new to your particular
company, or, an existing product that has been improved. In many instances a product will be labeled
All product development goes through a similar planning process. Although the process is a
continuous one, it is crucial that companies stand back after each step and evaluate whether the new
product is worth the investment to continue. That evaluation should be based on a specific set of
objective criteria, not someone's gut feeling. Even if the product is wonderful, if no one buys it the
Brainstorming and developing a concept is the first step in product development. Once an idea is
generated, it is important to determine whether there is a market for the product, what the target
market is, and whether the idea will be profitable, as well as whether it is feasible from an
engineering and financial standpoint. Once the product is determined to be feasible, the idea or
Simply having an “idea” is worthless--you need to have proof of when you came up with the idea for
your invention. Write down everything you can think of that relates to your invention, from what it is
and how it works to how you’ll make and market it. This is the first step to patenting your idea and
keeping it from being stolen. You’ve probably heard about the “poor man’s patent”--writing your
idea down and mailing it to yourself in a sealed envelope so you have dated proof of your invention’s
conception. This is unreliable and unlikely to hold up in court. Write your idea down in an inventor’s
journal and have it signed by a witness. This journal will become your bible throughout the patent
process. An inventor's journal can by any bound notebook whose pages are numbered consecutively
and can't be removed or reinserted. You can find specially designed inventor's journals at bookstores
(try Nolo Press or the Book Factory to start), or you can save money and purchase a generic
notebook anywhere they're sold, such as the grocery store, office supply store, stationary store, etc
• Internal sources
• Customers
• Competitors
• Distributors
• Suppliers
• Criteria
• Process to spot good ideas and drop poor ones
– Market Size
– Product Price
– Development Time & Costs
– Manufacturing Costs
63
– Rate of Return
3. Concept of development and testing : The new product idea passes the
intial screeing is subject to the concept testing. The product testing involve translating the basic idea
into a specific set of featuers and attribute that the product will offer to ponitial consumer.
The concept of testing it involves presenting the product concept to appropriate target cosumer and
getting their reactions.
Must develop a preliminary marketing strategy plan for introducimg the new product in the market.
The plan consist of three part .
1. The describe the target market size , structur , product positioning , sales etc.
2. Outline the planned price distributer strategy, and market buget of first year.
3. Describe the long run sales and profit goels and marketing mix strategy over time.
After management develop the product concept and marketing strategy , it can evaluate the
proposal’s business attractiveness management needs to prepare sales ,cost and profit projection to
determine whether they satisfy company .As new information comes in the business analysis will
undergo revision and expansion.
In business analysis doing a estimating total sales and estimating cost and profits in business.
• Business Analysis
The next stage of new product development is product development. The job of
translating target customer requirement into a working prototype is helped dy a set of method
known as Quality Deployment. The methodology takes the list of Desired cutomers attributes
generated by market research and them into a list of engineering attributes can be use a engineers.
The research and development department will develop one or more physical versions of the
product concept.
64
Step 7: Market Testing:
After management is satisfied with functional and psychologoical performance, the product
ready to be dressed up with a brand name and packaging and put into a market test.The new product
is introduced into an authentic setting to learn how large the market is and how consumers and
The amount of market testing is influenced by the investment cost and risk on the one hand ,and the
time pressutre and research cost on the other .High investment –high risk products.
Step 8- Commercialization-
If the company goes a head with commercialization it will face its largest cost to date the company
will have to contract for manufacture or build or rent a full scale manufacturing facility
• Economic change brigs about economic development increase in the income in the long run but
• Sociological and development changes may appear in such factors as decreasing family size.The
• Political legal change brings about new trade agreement and government contract.
An effective product strategy links product decisions with cash flow,market dynamics
,product life-cycle and organization capabilities .A company must have cash for product
development understand the changes taking place in the market and have the necessary talent and
65
Product development stages
Fuctional Specification.
Product Specification
Design Review
Expectation?
Introduction
Evaluations
66
Issues for product design
• Robust design-: Means that the product is designed so that small variation in production or
assembly does not affect the product.
• Modular design-: Product design in easily segmented components are known as modular design
.Modular design offer flexibility to production and marketing as it makes change easier.
Coca-Cola India refreshes millions of consumers throughout the country .The campany launch the
new product in 350 ML and 1.25 Lt I Fridge Pack in, Coca-Cola, Thums Up, Fanta, Limca, Sprite,
Maaza, and also introduced Minute Maid Pulpy Orange,and Minute Maid Nimbu Fresh in duration
of 2008-2010. The company has invested more than US$ 1 billion in its Indian operations, emerging
as one of the country's top international investors. In-addition the company’s business operations also
67
Coke to launch 350 ml packs for people on-the-move
Launching Date: 2008-09-29
Global beverages firm Coca Cola is planning to introduce 350 ml packs of most of its major brands,
including Coca Cola, Diet Coke, Thumps Up and Mazaa, in a bid to attract on-the-move consumers
ahead of the expected sales drop in the winter.
The company has already introduced the new Xpress 350 ml pack for its Sprite brand and plans to
expand it to other products in a phased manner.
"Xpress 350 ml pack to be also made available in Coca-Cola, Diet Coke, Thumps Up, Maaza and
Kinley Club Soda in the first phase followed by Fanta, Limca and Minute Maid Pulpy Orange in the
second phase,".
"The Sprite Xpress packaging innovation will be the perfect complement to the on-the-move lifestyles
of today's youth and it will further strengthen the brands youth connect,"
The latest packaging would be available in select markets including Delhi and NCR, Bangalore,
Mumbai, Pune, Goa, Jaipur, Ahmedabad, Jodhpur and Udaipur.
The company will also launch a special campaign titled 'Seedhi Baat, No Bakwaas' to promote its
latest format.
The integrated campaign would focus on out-of-home media through location-specific creatives in
spots like shopping malls, parking areas and hang-out zones.
68
Cocke in 350 ML
Price Rs 17.10
Availability: In stock
Model:MRP 18.00
Manufacturer: COKE
THUMPS UP
350 ML
Average Not rated.
Thums up is the
Rating:
leading carbonated
soft drink and trusted brand It is known for it’s strong fizzy taste and it,s confident, mature and
uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.
Price Rs 17.10
Availability: In stock
Model:MRP 18.00
Manufacturer: Thumps Up
69
70
SPRITE 350 ML
launched last year builds a stronger connect with the youth, who are always on
the lookout of opportunities to move up the ladder. They prefer Sprite simply
because of its unmatched thirst quenching ability and stating facts as they are –
Coca-Cola India’s innovative 1.25 liter Fridge Pack. The innovation, backed by extensive research
has been specially designed for Indian consumers. It is aptly called the “Fridge Pack” as it easily fits
into any average size refrigerator owned by most families. To further strengthen consumer connect
especially within the in-home segment, Coca-Cola India has extended its latest packaging innovation
across its entire sparkling beverage portfolio i.e. Coca-Cola, Thums Up, Sprite, Fanta, Limca.
First launched in select markets of Delhi, Mumbai, Nasik and states like Gujarat and Orissa, the
Fridge Pack has been a runaway success within 2 months of its launch in end March ‘08. Now as part
of the 5 million milestone celebration, Coca-Cola India today announced plans to NATIONALLY
roll out the 1.25 liter Fridge Pack across all markets.
According to Venkatesh Kini, Vice-President, Marketing, Coca-Cola India, “Innovation has always
been the hallmark of Coca-Cola’s business strategy in India. With the trend of in-home consumption
of ready to drink packaged beverages on the rise, the success of the innovative 1.25 liter fridge pack
is exciting. It is heartening to see the packaging innovation cross the 5 million milestone within 2
months of its launch in select markets. The challenge now is to extend the benefits offered by the
fridge pack to maximum number of consumers. We are now in the process of rolling out this latest
innovation in a phased manner nationally, across our entire portfolio of sparkling beverage brands.”
71
Advantages:
The Fridge Pack, comes loaded with numerous advantages for consumers- be it the convenience to
store in an average size refrigerator, provide an ideal serving for one occasion consumption for 4-5
people. In-addition, the packaging innovation also provides for better fizz retention and at Rs 35
offers real value for money. The company has been launch the fridge pack in Coca –Cola ,Thums
up , Sprite,Fanta , Limca.
Thums
Sprite
Up
India’s largest selling Soft Drink brand in the clear lime segment, orange segment,cola section. is all
set to unveil its latest communication - Fridge Mein Jayega Bade Kaam Ayega on
New Delhi: Coca-Cola in India announced on Saturday the launch of the latest communication
initiative for Sprite – India’s largest selling Soft Drink brand in the clear lime segment. The initiative
Fridge Mein Jayega Bade Kaam Ayega (fits in your Fridge, comes in handy in everyday life) for the
innovative 1.25 liter Fridge Pack has been designed to strengthen Sprite’s consumer connect in the
segment of in-home consumption. The 1.25 liter Fridge Pack - a packaging innovation - comes
loaded with numerous advantages for consumers- be it the convenience to store in an average size
refrigerator or providing an ideal serving for one occasion consumption for 4-5 people.
India, “Packaging innovation has always added a new dimension to the whole experience of
having a soft drink, making it far more convenient for consumption and also offering better
value for money. With the trend of in-home consumption of ready to drink packaged
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beverages on the rise, the convenient 1.25 liter fridge pack offers immense benefits to the
consumers. The new communication initiative depicts the convenience of this pack through a
creative rendition that is peculiar to brand Sprite .The strategy includes building a stronger
connect with the youth, who prefer Sprite simply because of its unmatched thirst quenching
ability and its refreshingly honest attitude. The clutter breaking innovative initiative is
Leveraging the online platform, Sprite will also launch an exciting consumer contest on In.Com on
August 7, ‘09, a day prior to the Online Premier of the communication for its innovative 1.25 liter
Fridge Pack.
Leveraging the online platform, Sprite will also launch an exciting consumer contest on In.Com, a
day prior to the Online Premier of the communication for its innovative 1.25 liter Fridge Pack. As
part of the communication, Consumers get an opportunity to predict the entire plot of the
communication just by viewing the TVC for the initial 8 seconds. The consumers are expected to
predict the way forward for the protagonist who uses a Fridge Pack to find a way for his dinner. 6
lucky consumers selected from a computer generated lucky draw with the correct answers win Nokia
Multimedia Phones.
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Minute Maid pupply Orange
Minute Maid is a product line of beverages, usually associated with lorange juice, but now extends
to soft drinks of many kinds, including Hi-C. Minute Maid is sold under Cappy brand . .
Minute Maid was the first company to market orange juice concentrate, allowing it to be distributed
throughout the United States and served year-round. The Minute Maid company is now owned by
The Coca-Cola Company, and is the world's largest marketer of fruit juices and drinks. The firm
opened its headquarters in Sugar Land Town Square in Sugar Land, Texas, United States, on
In 1967, Minute Maid relocated to Houston, Texas, and is joined with Duncan Foods to form the
In 1970, the company was involved in a scandal in the United States about bad housing, often
referred to as "slave quarters," and working conditions of Minute Maid farm laborers in Florida. The
United Farm Workers stepped in to support the workers. NBC reported on the issue in a 1970
documentary called Chet Huntley's Migrant: An NBC White Paper In response to the bad press and a
boycott in Florida, the company established a program that improved the workers' situation
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In 1973, the company released its first ready-to-drink, chilled orange juice product in the United
In 1996, the name was changed from Minute Maid Corp. to The Minute Maid Company
The Coca-Cola Company sold its Minute Maid orange groves in Florida in 1997. The United Farm
Workers again took the side of the orange growers during this time
In 2001, the Minute Maid division of Coca-Cola launched the Simply Orange brand.
In 2002, Minute Maid bought the naming rights to re-brand the Houston Astros ballpark from Enron
In 2003, Minute Maid's division fully merges with Coca-Cola North America
It is actually a Minute made pulpy orange , which is very easy to prepare by mixing water in it and
Riding on the success of Minute Maid Pulpy Orange, Coca-Cola in India today announced the launch
of its latest product innovation under the Minute Maid brand umbrella. The new Minute Maid
Nimbu Fresh is a truly refreshing lemon juice-based drink with no added preservative or added
color. The latest offering is a lemon juice-based drink from the Coca-Cola Company's (TCCC) stable
developed especially for consumers in India. Minute Maid Nimbu Fresh is made out of great quality
fresh lemon juice concentrate, providing consumers with a great refreshing experience - just like
"Innovation has always been the hallmark of Coca-Cola's business strategy in India. The launch of
Minute Maid Nimbu Fresh is the latest example. Part of a phased launch, the latest product
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innovation would be first made available to consumers across the state of Tamil Nadu. As part of the
same process, over the next two months, Minute Maid Nimbu Fresh would be retailed across 35,000
outlets in the state followed by a nation-wide launch later this year", said T. Krishnakumar, CEO,
The latest innovation by Coca-Cola in India is targeted at consumers across all age groups who are
on the lookout for a naturally refreshing juice drink. The innovative consumer proposition of Minute
Maid Nimbu Fresh especially formulated to offer a refreshing experience is best explained by the
"We at Coca-Cola India are constantly trying to find new ways to delight and refresh our consumers.
It gives me immense pleasure to announce the launch of Minute Maid Nimbu Fresh, a refreshing
lemon juice-based drink developed especially for Indian consumers said Ricardo Fort, Vice
President, Marketing, Coca-Cola India at the launch. "The roll out of the latest innovation has
been designed to further extend the company's market leadership in the juice drink segment."
Minute Maid Nimbu Fresh is being made available in two pack sizes - on-the-go 400 ml PET and 1
liter PET all affordably priced at Rs 15 and Rs 40 respectively. Coca-Cola in India currently enjoys
market leadership in the juice drink segment with brand Maaza (no.1 mango juice drink in the
country) and Minute Maid Pulpy Orange (no.1 orange juice drink in the country). With the launch of
Minute Maid Nimbu Fresh, Coca-Cola in India is all set to further extend its leadership in this fast
growing segment.
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Someone has rightly said that
1. JO DIKHTA VO BIKTA HAI
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Findings And Analysis
SWOT ANALYSIS
STRENGTH:-
WEAKNESS:
Opportunity:
Threats:
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Pepsi is the major competitors ,that means watch myopia in the market every time.
QUESTIONNAIRE
ADDRESS _____________________________________________
1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR DO YOU HAVE?
A. PEPSI B COCA-COLA C BOTH D NONE
1 2 3
3 WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX TO ITS FULL
STRENGTH? A.SHORTAGE [ ]
B. EMPTY PROBLEM [ ]
C . IRREGULARITY OF THE SALESMAN [ ] D. OTHER [ ]
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7 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?
A. ( ) PEPSI ( ) COCA-COLA ( ) THUMS-UP
B. ( ) MIRINDA-O ( ) FANTA
D. ( ) SLICE ( ) MAAZA
Reason ………………………………………………………………
9 .Source of procurement
Dealer / Whole Seller / Company vehicle
Reason ………………………………………………………………
A-good [ ]
B-Bad [ ]
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ANALYSIS OF MOST SELLING BRANDS IN CHANDPUR
COKE 85%
PEPSI 10%
OTHERS 05%
others
pepsi
5%
10%
coke
85%
INCREASE 85%
NO CHANGE 15%
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INCREASING GROWTH OF CONSUMERS AFTER
MERCHANDISING
No Change
15%
Increase
85%
Increase No Change
HIGHWAY 30%
MARKET 40%
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WHERE THE MERCHANDISING OF COCA-COLA IS
MAXIMUM
Market
40%
THUMPS-UP 40%
COKE 20%
LIMCA 10%
SPRITE 10%
FANTA 10%
MAZZA 10%
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ANALYSIS OF MOST SELLING PRODUCT OF COCA-COLA COMPANY IN
BIJNOR
Coca-Cola
Sprite
8%
9% Thums-UP
Maaza 35%
12%
Limca
Fanta
16%
20%
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Owned by
retailer
15%
Under OYA
scheme
15%
Given by
company
70%
This gives us an indication, where the better prospects lies. In which particular type of
packing little innovation can do wonders. This provides us with an idea where we should
concentrate.
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Market Demand of different packings of Soft-Drinks
2lt
200ml
26%
30% 2lt
1lt
500ml
1lt 300ml
7% 200ml
300ml 500ml
23% 14%
The sample size shows that there is huge demand of 2lt pack (26%) and 200ml bottles (30%).
300ml bottles with 23% shares the 3rd position and 500ml. Shares the 4th position of the
demand total demand with the market demand of 14%
6 to 10 3 to 5
28% 46%
The sample size shows that maximum portion (around 46 %) of the retailers whose sale are
between 3 to 5 crates daily and only 8 % are the ones who are selling less that two crates.
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How the retailler gets display material from the
company ?
70
60
50
40
30
20
10
0
Schemes Gift Sharing / Draft Other
Gift
40%
Sharing / Draft
21%
Other
Schemes 6%
33%
The sample size gives us the brief idea about the pattern of distribution of merchandising
assets by the companies. Most of the retailers (around 73%) are getting the display material
through different schemes or as the gifts.
FIGURE 5
EMBED Excel.Chart.8 \s
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27% 25%
11%
37%
Out of the sample size, which has been covered 37% % of the shops, had CocaCola’s
refrigerator vis a vis to 25 % of Pepsi’s refrigerator. This shows that percentage distribution
of the refrigerators of Coca-cola co. is more than Pepsico. .
11 % of the sample size had the refrigerator of both the major players of the soft drink
industry.
27% of the sample size didn’t have any of the company’s refrigerators; they are using their
own refrigerators for the chilling purpose.
Field Experience
The success of any survey depends upon the quality and integrity of the survey or who collect the
basic data by expressing the subject under the study and on the respondent who provides the data
required by filling up the questionnaire.The accuracy of the data collected solely depends upon the
Keeping this in mind ihave tried my best to collect the reliable data. During this process .I
came across a variety of experiences some interesting and some bitter one’s .
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After knowing the utility of the survey some of the respondent filled up this questionnaire
sincerely wheres some of the other were not interested in it.How ever most of respond were friendly
Barring few exceptions I had a pleasant time with respondent .I hope that the
I got the opportunity to interact with different people of different areas in The Hindustan
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RESEARCH METHODOLOGY
Project RED is a live project. It can broadly be classified in two stages, which can be described as
follows.
Initial Stage:-
This stage comprises of Product Knowledge and Process Knowledge.
• The product knowledge means the knowledge of every product and its variants offered by the
company-
• The Process Knowledge means the knowledge about the distribution of the product and its
variants from the sales depot to the different retailers of the city.
The actual knowledge about the product and the process was attained with the help of Route
Riding.
Route Riding means to visit different outlets on the commuting vehicle (vehicle which carries
coke product from depot to different outlets) along with salesman. By the route riding it is very easy
to grasp and understand how the cola market actually works. Route riding elaborated the factors
influencing the cola market and provided the information about the competitor’s strategies and
schemes which they offer to the retailers in order to gain advantage. Retailer’s grievances were best
know with the help of route riding through personal interaction. Also with route riding any one can
know about the sales status of an outlet on a daily basis.
Later stage:
This stage comprises of the serious implementation of the project RED in the area of Patiala.
To ensure effective and fruitful implementation of the campaign, market developers (M.D.) were
appointed by the company. Market Developers carried the responsibility to handle all the activities
under the R.E.D. campaign.
The first step involved in this stage was to select the outlets where the campaign has to be
implemented. The outlets are selected on the basis of some parameters like annual sale of the outlet,
type of the outlet, space available at the outlet etc. Total available market was mainly segmented on
two parameters, which are given below on the next page.
(1.)Outlet volume
(a) Diamond: -
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This category includes those outlets whose annual sale is more than 800 crates.
(b.) Gold :-
This category includes those outlets whose annual sale is from 500 to 799 crates.
(c.) Silver :-
This category includes those outlets whose annual sales is from 200 to 499 crates.
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On basis of channel cluster outlets are divided into 3 main types.
(a.) Grocery :-
These outlets are primarily engaged in retailing of food and various household items. It
includes grocers (outlets dealing mainly in grains, provision, spices, edible, oil etc.), and general
stores.
(b.) E & D
(Eating and Drinking):- Outlets selling items to eat which are being cooked within outlet, made at the
outlet with possibility of consuming those products within the outlet. The outlet may have a place to
sit. It includes Bakery, sweets shop, Restaurant, Bars, Juice centers, Ice cream parlor.
(c.) Convenience:- It includes outlets which are small stores or shops, generally
accessible locally. These are often located alongside of busy roads. It includes
Chemists, STD booths, Pan Shops etc.
After the identification of the outlet on the pre specified norms, the total area of Patiala market was
fragmented and each fragmented sub market was to be looked after by the market developers
appointed by the company. Each M.D. had his permanent journey plan .
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MY ROLE IN PROJECT “RED”
IMPLEMENTATION – First and foremost task for me was to implement the project in the given
area with the support of MD’s (MARKET DEVELOPER). Various norms for different outlets had
been fixed but their implementation was very important. Different areas were assigned to me in
which I implemented RED and these areas are further visited by various higher.
TOTAL
SIGNATURE OF
ASM SIGNATURE OF SE
SIGNATURE OF SIGNATURE SIGNATURE SIGNATURE OF
DGM / SM OF ASM OF SE MARKET DEVELOPER
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• IMPLEMENTATION – First and foremost task for me was to implement the project in the
given area with the support of MD’s (MARKET DEVELOPER). Various norms for different outlets
had been fixed but their implementation was very important. Different areas were assigned to me in
which I implemented RED and these areas are further visited by various higher fficials of the
organization.
I have to check the stock, that is available in the shop, then I have to make
a report, and send to me team leader, the format of the report is that.
corresponding area was also my responsibility. I had to score him on fixed norms (RED SCORING
between MD’s and SALES TEAM and report to higher officials (Mr. Kamal Sharma) and
DGM (SALES).
• BRAND CONTACT - I had to interact regularly with shopkeepers to know their grievances
and solve them. If I could solve them then I reported them to my company guide, else he
• AVAILABILTY - I also need to give company Daily availability report of Patiala of various
brand.
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FINDINGS OF PROJECT
1). According to the demand of outlet owners, delivery of products are not
3). Sales people and delivery persons do not visit the outlets on a regular basis.
4). Advertisement materials are not available in the right time at the right place i.e.
5). Many outlet owners have complains on improperly working VISICOOLER i.e. its cooling
Capacity is low or its lights are not working.
7). Visicoolers are not placed at their Prime locations in many outlets
8). Many outlet owners express deep in satisfaction towards coca-cola as they do not get
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RECOMMENDATIONS
1. Delivery position should be maintained to get good return from the market.
2. The company must try to make different brands of Coca-Cola available at every retail outlet
3. Sales People and delivery persons should properly monitor the market whether stocks are
4. If Sign boards/Display boards are costly then we can provide them alternate arrangements like
5. We can provide them beautiful display racks, tablemats, menu-cards etc, containing the
6. Display material should be provided to the retailers on more regular basis to increase the sales
level.
10. The Company employees should make direct contact with the consumers, so that they may
aware with real situation of the market and consumers attitude towards the product. For this they
can arrange awareness camps in different locations.10. At every petrol-pump we should install
Fountain Machine. It will be helpful in generating impulse purchase and also as awareness about
selected outlets had a very high volume of sales of coca cola & its different brands. To maintain all
the brands in the required orientation Brand pack Order was very tough).
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2. Many of the retailers were reluctant to keep there visicoolers pure or in the prescribed brand
pack order without any genuine reason. They were hesitant even in allowing the company appointed
MD’s to pure their v/c’s. They wanted to keep the products in the way convenient to them.
3. Each retail counter exhibited a different sales scenario. In some shops the sales of R.G.B.
Scaled heights whereas in others pet bottles were in high demand. Due to this influencing factor the
4. Time constraint-the campaign R.E.D was designed to be implemented over a period spanning one
year. Many aspects of the campaign are still left unexplored as the project highlights the analysis for
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CONCLUSION
RED is a worldwide project of COCA COLA Company. This project is playing a very important role
for the company. With the help of this project, sale of the company has been increased. Because in
this project there is one market developer who has to ensure that Visicooler must be on prime
location, all brands must available, all brands must displayed in brand order i.e. COLOJK. All the
activation elements like warm display rack, table top rack, standees etc must be available at all
outlets come under RED. All these elements help the company in increasing the sales because
Definitely when sales increase then profits also increases. With the help of this project company has
increased its sale in Patiala region and also company can measure or check the performance of each
franchises working all over the world with COCA COLA COMPANY.
So…
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BIBLIOGRPHY
www.coca-cola.com
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