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A Project Report on Coca-Cola: A Cold Drink Industry

Aim Of The Project: To Understand the Complete Market Segments And Distribution Channel of Cold Drink Industry.

Prepared By:Ravindra Kumar Roll No. :-25 IIMIT Patna.

Purpose Of The Project:- For The Partial Fulfillment Of Course Of Bachelor Of Business Management (2nd Year).

INDIAN INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY Behind Vishnu Place, East Boring Canal Road Patna.

To whom it may concern

This is certify that MR. RAVINDRA KUMAR , Roll no. 25, student of INDIAN INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY, Bachelor Of Business Management (2nd Year) Session 2009-2011 has successfully completed his project study on

Understanding the Complete Market Segments And Distribution Channel of Cold Drink Industry under my guidance and supervision.

The duration of his project is one month. During his project study he has shown very much interest in completing his project. His work performance is very good and he has a leadership quality.

I strongly recommend for proper evaluation and examination of his project report. I wish him all the best for all his future endeavors.

DR. CHAKARADHAR SINHA DIRECTOR Indian Institute of Management and Information Technology

Contents
Sl. No. Topic Page No.

1. Profile of the study a. b. c. d. Declaration Executive Title Acknowledgement Executive Summary

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2. Company profile 3. Operating Groups 4. Production 5. Brand Portfolio 6. Companys Financial Statement 7. Strategies 8. Mission, Vision & Values 9. Advertising 10. Per Capita Consumption 11. Competitors Study and analysis 12. Conclusion 13. Recommendations 14. Key Learning 15. Bibliography

9-15 16-21 22 23 & 24 25-35 36 & 37 38 & 39 40 & 41 42 43 44 & 45 46 & 47 48 49

Declaration
I Ravindra Kumar a bona fide student of Indian Institute Of Management And Information Technology (Patna) would like to declare that the project entitled Complete Market Segments And Distribution Channel of Cold Drink Industry is submitted by me as in partial fulfillment of 2nd year of Bachelor of Business Management course and is my original work during the period of 20th December 2010 to 21st January 2011.

Date:Place:RAVINDRA KUMAR (Signature)

Executive Title
Since this study is of short duration (one month) and I research deeply about the cold drink industry and its market, channel of distribution, customers and its strategies. Hence my project title is:To Understand Complete Market Segments and Distribution Channel of Cold Drink Company i.e. Coca- Cola.

Objectives: To understand the soft drinks industry and its complete distribution chain. Since the cold drink industry is related to its heavy manufacturing plants and lastly to retail shop that helps to understand the processes and Retail Management. Since it has more and less seasonal demand which could help us to understand the average production and speed production of the product. To know about the production process of cold drinks. To know about customer perception and market demand of soft drinks. To earn particle knowledge. To understand how a project is prepare and how it helps a company in his development. This project also helps me in understanding the complete distribution channel and benefits and problem of supplier and retailers. In this project I also came to know about the operation management and minimum inventory policy of the company since the product offered perishable products The time management is very important in perishable product and I learn a lot about that in this project.

Acknowledgement

This project is a synergistic project of many minds which began in third week of December. This project is never completed without colossal support and great encouragement provided by the members of manufacturing plant in Patna, and the Director DR. CHAKARADHAR SINHA of my college, which enhance my capabilities and always encourage my efforts in this competitive market of Indian Business World.

I am also indebted to the employees of Coca- Cola Manufacturing Plant situated in Patna" for their valuable support and help in making this project to a huge success and a learning experience for me.

I would sincerely thanks to my group for his support and encouragement for providing me such a great support to work in this project with (CocaCola).Along with this I would also like to express my gratitude to each and every person involved directly or indirectly in this project and help at any point of time to complete my valuable project.

EXECUTIVE SUMMARY
To maintain and cope up with the growing competition from the various drinks providers, Coca-Cola needs to find potential customers, also to increase the suppliers of fresh water and satisfy their needs. Since this company mainly deals in the perishable product market which is highly competitive where all companies want to eat the large chunk of market, Coca-Cola able to differentiate their products from other competitor and provide best solution for customer problem which help them to became the market leader in this industry The broad objective of the project is to know the customers preferences and directly interact with them to understand the Customer problem and give them best solution. This project help me lot to understand the customer and their buying habits along with the customer perception. This company deals in the soft drink products so I am also able to understand the retail marketing which is one of the potential markets for all companies since 70% of the Population uses the product. The project will accomplish to understand how people inter-act with the perishable products which give customer feel good effect since it is a tangible product which a person can easily touch and feel. The main objective of this project is to understand the whole distribution channel of the perishable goods which can be spoilt if not delivered timely. So the distribution channel right from accumulation to the delivery of the finished products is very essential and is mainly used in making goodwill with the customers. In this one of the objectives is also to understand the backward integration of the company since he suppliers play major roles in these types of companies whose raw materials are very limited and there are many players which are looking for the same resources. All these steps helps us to understand how to cope up with different types of people and their diversified need and the project also help in understanding the trend of the scripts of the particular satisfaction level. This project helps to understand the CRM of the company.

Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to 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 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 soda fountains 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, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee. In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The company has stated that it plans to remove E211 from its other products, including Sprite and Oasis, as soon as a satisfactory alternative is found. The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European coca wine.

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In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca. 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. By 1888, three versions of Coca-Cola sold by three separate businesses were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version of the product. John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well. 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. By the time of its 50th anniversary, the drink had reached the status of a national icon in 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. The first outdoor wall advertisement was painted in the same year as well in Cartersville, Georgia. 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 two

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entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899 Chattanooga became the site of the first CocaCola bottling company. 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, effectively becoming parent bottlers. Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset stomach. 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, but CocaCola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to a variation of the old formula, under the name Coca-Cola Classic on July 10, 1985. 21st Century On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose, 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. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B 6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus." On July 5, 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 formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image.

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In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke. It is hard to imagine our Company selling only one beverage, but 124 years ago it was a reality. Since that time, we have grown into the worlds largest beverage company, with a portfolio of more than 500 brands and more than 3,300 beverage products that include a wide range of full-, reduced-, low-and no-calorie sparkling beverages, waters, sports and energy drinks, teas, coffees and dairy-andsoy-based beverages. But even with this tremendous variety, brandCoca-Cola remains vital to our continued growth and portfolio success. Coca-Cola is the Companys only product that sells in every market where we operate, and Coca-Cola Zero and Diet Coke/Coca-Cola light are not far behind. Each of these Trademark Coca-Cola brands has annual retail sales of more than $1 billion. They also yield high profits for the Coca-Cola system. These profits allow our bottling partners to continue expanding and improving their distribution networks and allow our Company to invest in relevant marketing initiatives and product innovations to continue to meet the needs of our consumers. Both are integral steps toward achieving the goals outlined in our 2020 Vision. In 2009, we gained volume and value share globally in NARTD beverages.We experienced significant growth among some of our core sparkling brands and new still brands. Our strategic relationship with illycaff SpA helped us grow our ready-to-drink (RTD) coffee unit case volume as well as gain volume and value share in Europe. And we continued to make significant investments in expanding our active lifestyle brand glacau vitaminwater and the Minute Maid and Simply juice portfolios. In fact, in 2009, Simply trademark became the Companys 12th brand, in addition to Coca-Cola, to have annual retail sales of more than $1 billion, joining Coca Cola Zero, Diet Coke/Coca-Cola light, Sprite, Fanta, Minute Maid, Dasani, Aquarius, Powerade, Sokenbicha, Georgia Coffee and glacau vitaminwater.

Coca-Cola in india

Coca-Cola, the corporation nourishing the global community with the worlds largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nations top soft-drink brand and bottling network. Its no wonder our brands have assumed an iconic status in the minds of the worlds consumers.

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A Healthy Growth to The Indian Economy Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels. Coca-Cola India is among the countrys top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations. A Pure Commitment to The Indian Economy The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of worldclass drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental in giving an exponential growth to the countrys job listings. Creating Enormous Job Opportunities With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system. The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network of 21 contract packers manufacture a range of products for the Company. On the distribution front, 10-tonne trucks open bay three-wheelers that can navigate the narrow alleyways of Indian cities constantly keep our brands available in every nook and corner of the countrys remotest areas. These are only some of the facts that speak about our commitment to the growth of the Indian Economy.

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3. Business Profile

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Established in 1886, The Coca-Cola Company operates in more than 200 countries and markets more than 500 brands and 3,300 beverage products. These products include sparkling beverages and still beverages, such as waters, juices and juice drinks, teas, coffees, sports drinks and energy drinks. We have four of the worlds top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta.

The Coca-Cola System

We are a global business that operates on a local scale in every community where we do business. We create global reach with local focus because of the strength of the Coca-Cola system, which comprises our Company and our bottling partnersmore than300 worldwide. Our Company manufactures and sells concentrates, beverage bases and syrups to bottling operations; owns the brands; and is responsible for consumer brand marketing initiatives. Our bottling partners manufacture, package, merchandise and distribute the finished branded beverages to our customers and vending partners, who then sell our products to consumers. All bottling partners work closely with customersgrocery stores, restaurants, street vendors, convenience stores, movie theaters and amusement parks, among many othersto execute localized strategies developed in partnership with our Company. Customers then sell our products to consumers at a rate of 1.6 billion servings a day. Our business operations are divided into the following geographies:Eurasia and Africa, Europe, Latin America, North America and Pacific,as well as our Bottling Investments Group.

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Ingredients

Carbonated water Sugar (sucrose or high-fructose corn syrup depending on country of origin) Caffeine Phosphoric acid v. Caramel (E150d) Natural flavorings

A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar, approximately 10 teaspoons), 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories.
Formula of natural flavorings Main article: Coca-Cola formula

The exact formula of Coca-Cola's natural flavourings (but not its other ingredients which are listed on the side of the bottle or can) is a 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.
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 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 sweeteners, and then carbonate it before putting it in 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) and Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world. Independent bottlers are allowed to sweeten the drink according to local tastes. The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company".

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Name

Launched Discontinued

Notes

Picture

Coca-Cola

1886

The original version of Coca-Cola.

Caffeine-Free Coca-Cola

1983

The caffeine free version of Coca-Cola.

Coca-Cola Cherry

1985

Was available in Canada starting in 1996. Called "Cherry Coca-Cola (Cherry Coke)" in North America until 2006. Zero-calorie variant (Coca-Cola Cherry Zero) also currently available.

New Coke/"CocaCola II"

1985

2002

Still available in Yap and American Samoa

Still available in: American Samoa, Austria, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina, Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, Norway, Runion, Singapore, Spain, Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza Still available in: 2002 2005 Austria, Australia, China, Germany, Hong Kong, New Zealand (600 mL only)

Coca-Cola with Lemon

2001

2005

Coca-Cola Vanilla

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Malaysia, Sweden (Imported) and Russia. Was called "Vanilla Coca-Cola (Vanilla Coke)" during initial U.S. availability. 2007 It was reintroduced in June 2007 by popular demand

Coca-Cola C2

2003

2007

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

Coca-Cola with Lime Coca-Cola Raspberry

2005

Available in Belgium, Netherlands, Singapore, Canada, the United Kingdom, and the United States. End of 2005 Was only available in New Zealand.

June 2005

Coca-Cola Zero

2005

Coca-Cola M5

2005

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

Coca-Cola Black Cherry Vanilla

2006

Middle of 2007

Was replaced by Vanilla Coke in June 2007

Coca-Cola Blk

2006

Beginning of 2008

Only available in the United States, France, Canada, Czech Republic, Slovak Republic, Federation of Bosnia and Herzegovina, Bulgaria and Lithuania Only available in Federation of Bosnia and Herzegovina, New Zealand and Japan. Only available in France and Belgium. Only available in the United Kingdom and Gibraltar. In Germany, Austria and Switzerland it's sold unter the label Mezzo Mix.

Coca-Cola Citra Coca-Cola Light Sango

2006

2006

Coca-Cola Orange

2007

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The financial information included in this section should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and Notes to Consolidated Financial Statements contained in our Company's 2008 and 2009 Quarterly Reports on Form 10-Q and 2008 Annual Report on Form 10-K. As a result of the Securities and Exchange Commissions (SEC) Rule Release No. 33-9002, "Interactive Data to Improve Financial Reporting," the Company is required to submit Interactive Data as Exhibit 101 (attachment type EX-101) for certain Exchange Act and Securities Act filings. This Rule is effective for the Company beginning with our second quarter 2009 interim financial statements filed on Form 10-Q. Interactive Data is made possible through the computer language eXtensible Business Reporting Language (XBRL). XBRL offers near real-time access to financial reports, generally within minutes of our Company filing them with the SEC, and provides more flexibility to view and compare data versus traditional HTML filings. With XBRL, investors can create their own customized reports, automatically generating financial ratios, graphs, and charts depicting important information from financial statements. Due to the functionality of interactive data filed with the SEC, the Company will no longer provide excel versions of our financial statements on this website.
2009 FINANCIAL STATEMENTS

Income Statement Balance Sheet Cash Flow Statement

2008 UPDATED FINANCIAL STATEMENTS*

Income Statement Balance Sheet Cash Flow Statement

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Financial Statement for the Year ending 2008-2009

o Income Statement of Company
The Coca-Cola Company and Subsidiaries Condensed Consolidated Statements of Income (UNAUDITED) (In millions except per share data)

Three Months Ended March 28, 2008 $ 7,379

Three Months Ended June 27, 2008 $ 9,046

Three Months Ended September 26, 2008 $ 8,393

Three Months Ended December 31, 2008 $ 7,126

Year Ended December 31, 2008 $ 31,944

NET OPERATING REVENUES

Cost of goods sold

2,624

3,162

3,020

2,568

11,374

GROSS PROFIT Selling, general and administrative expenses

4,755

5,884

5,373

4,558

20,570

2,796

3,095

3,139

2,744

11,774

Other operating charges

85

110

47

108

350

OPERATING INCOME

1,874

2,679

2,187

1,706

8,446

Interest income

65

69

105

94

333

Interest expense

117

89

111

121

438

Equity income (loss) net

137

(843)

272

(440)

(874)

Other income (loss) net

101

17

(79)

39

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INCOME BEFORE INCOME TAXES

1,959

1,917

2,470

1,160

7,506

Income taxes CONSOLIDATED NET INCOME Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY BASIC NET INCOME PER SHARE * DILUTED NET INCOME PER SHARE *

448

474

555

155

1,632

1,511

1,443

1,915

1,005

5,874

11

21

25

10

67

$ 1,500 $ 0.65 $ 0.64 $ 0.38

$ 1,422 $ 0.61 $ 0.61 $ 0.38

$ 1,890 $ 0.82 $ 0.81 $ 0.38

$ 995 $ 0.43 $ 0.43 $ 0.38

$ 5,807 $ 2.51 $ 2.49 $ 1.52

DIVIDENDS PER SHARE AVERAGE SHARES OUTSTANDING

2,322

2,316

2,311

2,312

2,315

Effect of dilutive securities AVERAGE SHARES OUTSTANDING ASSUMING DILUTION

29

27

18

21

2,351

2,343

2,329

2,321

2,336

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o Cash Flow Statement

The Coca-Cola Company and Subsidiaries Condensed Consolidated Statements of Cash Flows (UNAUDITED) (In millions)
Three Months Ended March 28, 2008 OPERATING ACTIVITIES Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity income or loss, net of dividends Foreign currency adjustments Gains on sales of assets, including bottling interests Other operating charges Other items Net change in operating assets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES Acquisitions and investments, principally beverage and bottling companies and trademarks Purchases of other investments Proceeds from disposals of bottling companies and other investments Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash used in investing $ 1,511 307 75 (8) (122) (18) (8) 78 11 (706) 1,120 637 152 (222) 856 (43) (111) 159 34 (1,198) 3,218 $ 2,954 $ 4,869 943 223 (221) 638 (39) (128) 141 57 (815) 5,668 $ 5,874 1,228 266 (360) 1,128 (42) (130) 209 153 (755) 7,571 Six Months Ended June 27, 2008 Nine Months Ended Septembe r 26, 2008

Year Ended Decembe r 31, 2008

(238) (42)

(621) (140)

(655) (212)

(759) (240)

97 (386) 14 (2)

387 (896) 46 (10)

454 (1,370) 46 (57)

479 (1,968) 129 (4)

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activities FINANCING ACTIVITIES Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Net cash provided by (used in) financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase during the period Balance at beginning of period Balance at end of period 2,106 4,093 $ 6,199 2,478 4,093 $ 6,571 3,704 4,093 $ 7,797 608 4,093 $ 4,701 3,204 (1,825) 316 (254) 1,441 4,317 (2,478) 459 (1,031) (884) 383 5,308 (3,211) 570 (1,079) (1,764) (176) 4,337 (4,308) 586 (1,079) (3,521) (3,985) (557) (1,234) (1,794) (2,363)

102

111

(615)

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o Balance Sheet
The Coca-Cola Company and Subsidiaries Condensed Consolidated Balance Sheets (UNAUDITED) (In millions except par value)
December 31, 2008 ASSETS CURRENT ASSETS Cash and cash equivalents Marketable securities Trade accounts receivable, less allowances Inventories Prepaid expenses and other assets TOTAL CURRENT ASSETS EQUITY METHOD INVESTMENTS OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES OTHER ASSETS PROPERTY, PLANT AND EQUIPMENT

$ 4,701 278 3,090 2,187 1,920 12,176 5,316 463 1,733 net 8,326 6,059 4,029 2,417 $ 40,519

TRADEMARKS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS

TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes TOTAL CURRENT LIABILITIES LONG-TERM DEBT

$ 6,205 6,066 465 252 12,988 2,781

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OTHER LIABILITIES DEFERRED INCOME TAXES THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; Authorized 5,600 shares Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY

3,011 877

880 7,966 38,513 (2,674) (24,213) 20,472 390 20,862 $ 40,519

TOTAL LIABILITIES AND EQUITY

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Financial Statement for the Year ending 2009-2010

o Income Statement of Company
The Coca-Cola Company and Subsidiaries Condensed Consolidated Statements of Income (UNAUDITED) (In millions except per share data)
Three Months Ended April 3, 2009 NET OPERATING REVENUES Cost of goods sold GROSS PROFIT Selling, general and administrative expenses Other operating charges OPERATING INCOME Interest income Interest expense Equity income net Other income (loss) net INCOME BEFORE INCOME TAXES Income taxes CONSOLIDATED NET INCOME Less: net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY BASIC NET INCOME PER SHARE * DILUTED NET INCOME PER SHARE * AVERAGE SHARES OUTSTANDING Effect of dilutive securities AVERAGE SHARES OUTSTANDING ASSUMING DILUTION $ 7,169 2,590 4,579 2,624 92 1,863 60 85 17 (40) 1,815 456 1,359 11

$ $ $

1,348 0.58 0.58 2,313 6 2,319

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o Cash Flow Statement

Condensed Consolidated Statements of Cash Flows (UNAUDITED) (In millions)
Three Months Ended April 3, 2009 OPERATING ACTIVITIES Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity income or loss, net of dividends Foreign currency adjustments Gains on sales of assets, including bottling interests Other operating charges Other items Net change in operating assets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES Acquisitions and investments, principally beverage and bottling companies and trademarks Purchases of other investments Proceeds from disposals of bottling companies and other investments Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash used in investing activities FINANCING ACTIVITIES Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Net cash provided by financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase during the period Balance at beginning of period Balance at end of period (3,001) 10 (950) 1,817 (179) (6) 37 (467) 7 9 (599)

1,359 283 53

(20) (3) 42 (5) 74 100 (1,010) 873

5,758

24

2,115 4,701 6,816

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o Balance Sheet
The Coca-Cola Company and Subsidiaries Condensed Consolidated Balance Sheets (UNAUDITED) (In millions except par value)
April 3, 2009 ASSETS CURRENT ASSETS Cash and cash equivalents Marketable securities Trade accounts receivable, less allowances Inventories Prepaid expenses and other assets TOTAL CURRENT ASSETS INVESTMENTS Equity method investments: Coca-Cola Hellenic Bottling Company S.A. Coca-Cola FEMSA, S.A.B. de C.V. Coca-Cola Amatil Limited Coca-Cola Enterprises Inc. Other, principally bottling companies and joint ventures Other investments, principally bottling companies TOTAL INVESTMENTS 1,386 840 680 2,410 441 5,757 $ 6,816 263 3,139 2,298 2,198 14,714

OTHER ASSETS PROPERTY, PLANT AND EQUIPMENT

1,793 net 8,425 6,042 3,988 2,384 $ 43,103

TRADEMARKS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS

TOTAL ASSETS

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LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes TOTAL CURRENT LIABILITIES $ 5,651 6,701 461 356 13,169

LONG-TERM DEBT OTHER LIABILITIES DEFERRED INCOME TAXES THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; Authorized 5,600 shares Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY

5,017 2,944 865

880 8,021 38,911 (2,893) (24,207) 20,712 396 21,108 $ 43,103

TOTAL LIABILITIES AND EQUITY

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What will drive our success in the future? Not just growth, but sustainable growth -- meeting our short-term commitments while investing to meet our longterm goals. And we have a vision and clear goals to guide our journey to achieve long-term growth -- the kind of long-term growth that allows careers to flourish. We are building on our fundamental strengths in marketing and innovation, driving increased efficiency and effectiveness in interactions with our system and generating new energy through core brands that focus on health and wellness.

We are poised to capture the opportunity in so many ways. Here are just a few:

With the world's most recognized family of brands, we deliver more than 3,300 beverages to over 200 countries around the world -- not just soft drinks, but juice and juice drinks, sports drinks, water, even coffee and milk. And every day we explore new ways to create and share beverages to energize, relax, nourish, hydrate and enjoy. As the world's largest distributor of non-alcoholic beverages, we maintain a trusted local presence in every community we serve. We are constantly looking ahead to anticipate what our communities may need and gathering resources to support them. We've increased our annual marketing budget substantially, launched many new products, and developed a model to help our retail customers maximize their sales while we continue to plan for the next one, five and ten years in business.

We need highly skilled, ambitious, experienced professionals who think entrepreneurially and thrive on teamwork. Our growth strategy in developing markets is to leverage the scale and reach of our system to shape and capture value. We do this by sharpening our execution at the point of sale and expanding our brand portfolio. Developing markets are expected to contribute approximately 20 percent of incremental population growth over the next 10 years.1 Personal expenditure per capita in these markets is expected to increase by 65 percent over the next decade.1 And we anticipate that developing markets will contribute approximately one quarter of our incremental unit case volume by 2020.

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In developing markets, we are focused on growing annual consumption of our beverage products. We work with our bottling partners to establish new customer relationships and grow existing ones, from street vendors and restaurants to large-scale grocers. We also invest in building the scale and capabilities of our distribution network so we can deliver more products to our customers. Once we establish more outlets to sell our products and reach consumers, we can selectively expand our portfolio as consumer demand evolves. We introduce new products to the market where they make sense, moving beyond Trademark Coca-Cola to juices and juice drinks, energy drinks, teas, coffees, packaged waters and sports drinks. We start with products that have been successful in developed markets and then innovate products specifically targeted for a market as we grow our consumer base. We also strengthen our marketing in the region through media advertisements, billboards in high-traffic areas and connecting with consumers through mobile phone marketing and newly established loyalty programs. Our investment in developing markets is a longer-term strategy. After years of making these investments and enhancing our overall presence and offerings in these markets, we are poised to capture the industry growth opportunities.

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The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottler partners. Our Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture

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

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Live Our Values

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

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

Focus on the Market

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

Work Smart

Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently

Act Like Owners

Be accountable for our actions and inactions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes -- what worked and what didnt

Be the Brand

Inspire creativity, passion, optimism and fun

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Coca-Cola's advertising has significantly affected American culture, and it is frequently credited with inventing the modern image of Santa Claus as an old man in a red-and-white suit. Although the company did start using the red-and-white Santa image in the 1930s, with its winter advertising campaigns illustrated by Haddon Sundblom, the motif was already common.[63][64] Coca-Cola was not even the first soft drink company to use the modern image of 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.[65][66] Before Santa Claus, Coca-Cola relied on images of smartly dressed young women to sell its beverages. CocaCola's first such advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman. 1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a series of advertisements informing consumers that "Coke means Coca-Cola".[67] In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by Billy Davis, became a hit single. Coke's advertising is 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. Some of the memorable Coca-Cola television commercials between 1960 through 1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST 19361950, WAGA 19511959) 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.

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During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests demonstrating that, according to the commercials, "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: most likely, all the taste tests 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 its leadership in the market. 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 five years with the company, Coca-Cola issued special Selena coke bottles.[68] The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting Coke-product images in many of its films. After a few early successes during Coca-Cola's ownership, Columbia began to underperform, and the studio was sold to Sony in 1989. 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). In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers earn points by entering codes from specially marked packages of Coca-Cola products into a website. These points can be redeemed for various prizes or sweepstakes entries.

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Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets. Around the world, some local brands 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 Brittany, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which led The Coca-Cola Company to purchase 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 sales. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. 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, due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola, popular in the Middle East, are competitors to CocaCola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of China Future cola is a competitor. 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 Israel, RC Cola is an inexpensive competitor. Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar, is a serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on the Portuguese island of Madeira. Coca-Cola has stated that Pepsi was not its main rival in the UK, but rather Robinsons drinks.

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CONCLUSIONS
During the three months of my training I have studied the various strategies of Coca-Cola brand positioning for generating awareness among the people. Coca-Cola is one of the oldest brands and the positioning of this brand is for all level of society which is excellent. Since Coca-Cola is the oldest brand in this market hence it raptures the market more than 50% Company not only takes care of the customers but also the suppliers. Since the suppliers are generally middle class so special emphasis are given on them. They offer variety of good quality product, which lure the customers for buying. It produce new brand time to time according to the latest trend. The amendment in the personnel of the, company and any achievement of the company due to their valuable contribution leads to enhance the moral of the employees. The company conducted the survey to strength relationship with the customers. This will help the company in various ways like Firstly will help the company to know where it lacks so that I it can be rectified Secondly it make the customer make them feel that they are important for the company and lastly in assessment of the sales executives performance. But if we talk about the customer retention and customer satisfaction then we find that the customer retention is .lot satisfactory and the customer satisfaction is the cause of this. The organizational culture is excellent. The members are treated as the employee of the company which incuses the moral support in between these people and they want to do best.

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Since the retailers are also treated as the employees. Any organization runs due to their efficient culture and relationships among the employees. Here, the ERM (Employee Relationship Management) of the company are not up to the mark. Many retailers are not happy with the Patna Branch because they are not motivated by the Organization. This is mainly because of the distributor since they do all the activities according to their own will and not according to the demand of the retailers. Since we know that a good employee make a good customer hence if the employees are not satisfied then how they make good customer. In today's business world the customer retention is very necessary since a new customer costs 5 times more than old customer hence there must be some initial steps to be taken for the improvement of the satisfaction level by Patna Branch.

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RECOMMENDATIONS:
Don't forget retailers and vendors- If the company will provide some gifts to retailers and vendors then the retailers will keep more of their stock and the mason will do buzz marketing for the company.

Conduct seminar and workshops- Lately Patna Branch has not been conducting any seminars and workshops whereas some of the other competitors regularly do. This will help Patna Branch to understand the retailers need and customer's problem and also create a good image in front of the retailers and by doing so they did well while handling the customers.

Frequent visit by the sales personnel- If the frequency of the visit by the marketing officer at the retailers counter & to the distribute is adequate than the company's relationship building activity will be strengthen which will facilitate the sale potential.

Adequate advertisement & publicity The Company has to do a lot in respect to the advertisement & media selection. For generating more sales it has to select the strong and visual channels. Since the people are becoming more health conscious so there most be some advertisement showing these stuffs. Incentive schemes- Incentive schemes have to be lucrative which binds the retailers with the brand. He must feel motivated to sell more and get the proper benefit from it. Since there are many retailers whose main income is from Coca-Cola outlets so special emphasis are given to them. Take care of your assets and remove the liabilities- Coca-Cola must take care of it's assets like goodwill and brand image and remove the liabilities like weak supply chain, low advertising etc.

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Availability of the products must be improved- Since there are about 14 products sold under the umbrella of Coca-Cola brand. The product assortments arc very large but the availability is very less for several products. Even holding booths don't have all products in their shelf. So make sure that all products must be available at least in the holding booths.

Take care of the Distributor supply strategy- since many retailers have problems with the distributors and they face a lot of discrimination from the distributor view. So if possible take the distribution in own hand fulfill the demand of the retailers and customers. Since retailers are got the chance to interact directly with the customers. So make the retailers happy so that they make the customers happy.

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Key Learning

My project is for short duration but during this period of time I learn a lot from tile market and the Company. Know about the Coca-Colas products and its working style. Knowledge about the product differentiation in this highly competitive market. Practical knowledge about making the marketing strategies and analyzing the pros and cons of the strategies and using to redefine it in recommending again practically. Knowledge about competition in the soft drink market. Proper interaction with the clients as professional is also a great learning. Knowledge about complete distribution channel. Knowledge about selling tile brand and brand awareness. I enhanced by listing ability as sometimes when you talk to respondents retailers they start ranting about few points on and on so in that case you need to be calm and have a good listening ability like a good marketer. Work process inside the office and in manufacturing plant.

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Website of Coca-Cola Report of Health an Nutrition Department by Government of India Annual report of Coca-Cola limited Marketing Management Book:- By R. L. Varshney Coca-Cola Booklet Company Status Report