Sample Report Coke

Coca-Cola Summer Internship Report Document Transcript
1. Summer Internship Repot2010Anamika TarafdarM0907000079048753143250 Kandhari Beverages Private Limited An Internship Report Anamika Tarafdar M090700007 IN PARTIAL FULFILMENT OF THE MASTERS PROGRAM IN BUSINESS ADMINISTRATION, , H.P., INDIA ACADEMIC SESSION 2009-11 __________________________________ ____________ PREFACE In summer the consumption of soft drinks is more due to hot weather in this time chilled weather is needed everywhere and everybody irrespective of age difference. In the market peoples not only need water, but they want some taste too. Here comes the need of soft drinks: it has become an essential part of market as people like it in addition to the bottles, now days packages of soft drinks i.e. Tin cans, Pet packs of i.e. Litters canisters and dispensers are introduced to enhance the impact in sales. The Maters curriculum is designed in
such a way that student can grasp maximum knowledge and can get practical exposure to the corporate world in minimum possible time. Business schools of today realize the importance of practical knowledge over the theoretical base. The research report is necessary for the partial fulfillment of Masters curriculum and it provides an opportunity to the student in understanding the industry with special emphasis on the development of skills in analyzing and interpreting practical problems through the application of management theories and techniques. It is a new platform of learning through practical experience, which incorporates survey and comparative analysis. It gives the learner an opportunity to relate the theory with the practice, to test the validity and applicability of his classroom learning against real life business situations. ACKNOWLEDGEMENT We think if any of us honestly reflects on who we are, how we got here, what we think we might do well, and so forth, we discover a debt to others that spans written history. The work of some unknown person makes our lives easier every day. We believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to
acknowledge those people, we know have directly shaped our lives and our work. I express my gratitude to the Kandhari Beverages Private Limited (KBL) and Mr. Eesh Sethi, General Manager for giving me an opportunity to work with them and make the best out of my internship. I specially thank my trainers, Deputy General Manager Mr. Sagoo for constantly guiding and supporting me throughout the training period. My heartfelt gratitude also goes out to the staff and employees and specifically to Miss Preeti Bain, Marketing Research Executive at KBL for co-operating with me and guiding me throughout the three months of my internship period. I thank my school, Chitkara Business School for being the constant driving force to put to practice, the theoretical knowledge that I imparted from the program. I thank the internship cocoordinators, Dr. S.R.Taneja, Dr. Sandhir Sharma and Dr. Santhosh for imparting their wisdom on my thought process. Last but not of least importance, I take this opportunity to thank my parents and friends who have been with me and offered emotional strength and moral support. Table of Contents Annexure A: Overview of the Company CHAPTER
1: INTRODUCTION 1.1: A brief insightThe FMCG Industry in India. 1.2: A brief insight- The Beverage Industry in India. 1.3: Industry Profile .... CHAPTER 2: THE COCA-COLA COMPANY 2.1: History of CocaCola. 2.2: Evolution of CocaCola 2.3: Manifesto for Growth 2.3.1: Values 2.3.2: Mission 2.3.3: Vision for Sustainable Growth CHAPTER 3: COCA-COLA PRODUCTS 3.1: Brands of CocaCola
 CHAPTER 4: KANDHARI BEVERAGES PRIVATE LIMITED 4.1: Introduction to the Company 4.2: Coca-Cola and Franchisee . 4.3: The Company 4.3.1: Manifesto for Growth 4.3.2: Management 4.3.3: Human Resources.. 4.3.4: Kandhari Beverages Pvt. Ltd.. 4.3.5: Enrich Agro Food Products Pvt.Ltd.. 4.3.6: Growth Record 4.4: Organization Structure 4.5: Manufacturing Unit of KBL 4.6: Manufacturing process at KBL .. 4.7: Business Plan model at KBL . 4.8: Distribution Network 4.8.1: Distribution
Routes 4.8.2: Distribution System 4.8.3: Departments involved in the Distribution process 4.9: SWOT Analysis of KBL 4.9.1: Strengths . 4.9.2: Weaknesses 4.9.3: Opportunities 4.9.4: Threats 4.10: Competitors to KBL CHAPTER 5: FINANCIAL ANALYSIS.. .. 5.1: Financial statements CHAPTER 6: STRATEGIC MANAGEMENT BY COCACOLA CHAPTER 7: FUTURE PLAN- THE ROADMAP. Annexure B: Summer Project
Undertaken CHAPTER 8 : THE PROJECT .. 8.1: Executive Summary . 8.2: Need and Objective of the Study .. 8.3: Critical Literature Review 8.4: Research Methodology CHAPTER 9 : INTERPRETATION AND ANALYSIS. 9.1: Data Interpretation 9.1.1: Graph 1: Total number of Consumers based on Age Group 9.1.2: Graph 2: Total number of Consumers based on Gender 9.1.3: Graph 3: General reaction of Consumers about MMPO. 9.1.4: Graph 4: Reaction analyzed on basis of Age Group. 9.1.5: Graph 5: Reaction analyzed on basis of gender. 9.2: End Consumer
Questionnaire 9.3: Q2 ANALYSIS ... 9.3.1: Trend Analysis 9.3.2: Gap Analysis 9.3.3: Implementations .. 9.3.4: Recommendations CHAPTER 10: SOME SPECIFIC OBSERVATION ... Annexure C: Market Research Execution CHAPTER 11: EXECUTIVE SUMMARY... CHAPTER 12: SEGMENTATION MODEL -RED... CHAPTER 13: SAMPLING BY CCI ... CHAPTER 14: MARKET IMPACT TEAM... CHAPTER 15: OPEN REVIVE GROUP (ORG ACCOUNT)... CHAPTER 16: PLACEMENT OF SGA IN MARKET CHAPTER 17: SOME SPECIFIC
OBSERVATION ... CHAPTER 18: PROMOTIONAL ACTIVITY...... CONCLUSION. ...... APPENDIX .. BIBLIOGRAPHY EXECUTIVE SUMMARY Coca-Cola, the product that has given the world its bestknown taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five
cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through one of its largest bottler, KBL, the North Indian bottling arm of the Coca-Cola Company. The main objective of this study lies in understanding the organization and studying the market of the SSD (sparkling soft drinks) brands by Coca-Cola and understanding the consumers perception and opinion about the products,
with more inclination towards the study on market of juices and Kinley water & soda, and the respective competitors analysis. This report will also give insight to the companys norms to maintain standards, the production process, their strategies to keep up with their retailers, companys approach towards the sales of SSD and most importantly this report will provide an opportunity to know the psychographic needs of the retailers which in turn shows the company an avenue to create a good future plan. This report will provide detailed information about prevailing market competition and thus prepare itself to meet the market challenge by making adjustment in its new strategy and promotional activity. The project begins with in-depth interview with the owner of retail outlets, as primary source, to extract the reality on ground level about retailers psychology as our distributor and competitors position and strategy. The third need was to know the psychographic needs of our consumers, which was achieved by feedback/questionnaire process among 100 to 150 youngsters. The conclusion drawn from the quantative analysis of data via graphs and open ended feedbacks, are
represented in under the tag of gap analysis/grievances and implications/suggestions. Chapter 1: INTRODUCTION 1.1: A brief insightThe 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 into the purchase of FMCG than they do for other products. 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 strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. 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. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customercentric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. 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 provides up to 4 million jobs. The FMCG sector consists of the following categories: Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble. Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman. Branded and Packaged foods and
beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur. Spirits and Tobacco- the major players being; ITC, Godfrey, Philips and UB.1.2: A brief insight- The Beverage Industry in India In India, beverages form an important part of the 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 satisfy the existing consumers. BEVERAGESAlcoholicNonAlcoholicCarbonatedNonCarbonatedColaNon-ColaNon-Cola 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: Alcoholic, non-alcoholic and sports beverages. Natural and Synthetic beverages. In-home
consumption and out of home on premises consumption. 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. If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. Soft drinks witnesses healthy growth in India Soft drinks recorded robust double digit off-trade value growth in 2009, which was higher than that witnessed in 2008. Bottled water and fruit/vegetable juice continued to grow strongly as more consumers turned to these products in the search of healthier options. Carbonates also witnessed good sales growth as the long summer helped to fuel sales. Energy drinks has witnessed a slowdown in sales growth
as its is a premium priced product type and therefore not considered a necessity. Importantly, more consumers refrained from spending on non-essential items in the wake of the economic downturn. Soft drinks is expected to record healthy sales growth in the forecast period Soft drinks is expected to witness a healthy double-digit total volume CAGR growth over the forecast period. As consumer awareness and understanding of the variety of soft drinks increases and as manufacturers continue to be innovative, soft drinks is expected to perform well. Products on the health and wellness platform and niche categories can expect to see good sales growth in the forecast period. Chapter 2: THE COCA-COLA COMPANY Headquarters: One Coca-Cola Plaza Atlanta, GA 30313 Employees: 71,000 CEO: Neville Isdell Stock Symbol: KO Website: http://www.Coca-Cola.com/ Coca-Cola is the world's leading beverage company. The company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. The company makes and
distributes sodas, waters, fruit juice, teas and coffees and energy drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries drink the company's beverages at a rate exceeding 1.5 billion servings each day. Major brands include Coke, Diet Coke, Sprite, Bacardi, A&W, Minute Maid, Dasani, Nestea, Powerade and Hi C. 2.1: History of Coca-Cola Coca-Cola was invented by Doctor John Pemberton a pharmacist from Atlanta Georgia in May of 1886. John Pemberton concocted the CocaCola formula in a three legged brass kettle; all this was done in his backyard. The name Coca-Cola was actually given to John Pemberton by his bookkeeper Frank Robinson had excellent penmanship. He first scripted " Coca-Cola" into the flowing letters which has become the famous logo we know and love today. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expanses, so the first year of sales were a loss. Until 1905, the soft drink,
marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut. In 1887, another Atlanta pharmacist and businessman, Asa Candler bought the formula for Coca-Cola from inventor John Pemberton for $2,300. By the late 1890s, Coca-Cola was one of America's most popular fountain drinks; Candler's aggressive marketing of the product takes credit for that. With Asa Candler, now at the helm, the Coca-Cola Company increased syrup sales by over 4000% between 1890 and 1900. Advertising was an important factor in John Pemberton and Asa Candler's success and by the turn of the century, the drink was sold across the United States and Canada. Coca-Cola began selling syrup to independent bottling companies licensed to sell the drink. Still today, the US soft drink industry is organized on this principle 2.2: Evolution of Coca-Cola Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. 1894 A modest start for a Bold Idea In a candy store in
Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 The first bottling agreement 445770046990Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants
were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 Birth of the contour bottle 014605Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A group representing the Company and 4591050379730bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920s Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 4114800723901920s and 30s
International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 088901940s Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 41148003321051950s Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type -- the traditional 6.5ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s
New brands introduced Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by POWERADE and DASANI in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s Consolidation to serve customers As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern
Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows. 2001 launched the new fridge pack in USA a thinner longer 12 pack design 2005 innovative aluminum contour bottles introduced commonly called M5 as the magnificent five bottles., CocaCola zero a zero calorie Coca-Cola with real Coca-Cola taste launched. 2006 Coca-Cola turns 120. Launches the every drop counts campaign to make the consumers remind of the variety of products Coca-Cola offers. 2007 launches the PET bottle which uses 5% less plastic than the other PET bottles opens up new world of Coca-Cola in Atlanta Georgia on May 24th. 2.3: Manifesto for Growth The world is changing all around us. To
continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. 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 bottling partners. 2.3.1: Our Mission Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference. 2.3.2: Our Vision Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, 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 longterm return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization. 2.3.3: Our Winning CultureOur Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality. 2.3.4: Live Our Values Our values serve as a compass for our actions and describe how we behave in the world. Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: 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 2.3.5: 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 2.3.6: Work Smart Act with urgency. Remain responsive to change. Have the courage to change course when needed. Remain constructively discontent. Work efficiently. 2.3.7: 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. 2.3.8: Be the Brand Inspire creativity, passion, optimism and fun. Chapter 3: COCA-COLA PRODUCTS The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to bottle or pack the existing drinks. 3.1: Brands of Coca-Cola 37433251993900015875Coca-Cola Zero has been one of the most successful product launch hes in Coca-Colas history. In 2007, Coca-Colas sold nearly 450 million cases globally. Put into perspective, that's roughly the same size as Coca-Colas total
business in the Philippines, one of our top 15 markets. As of September 2008, CocaCola Zero is available in more than 100 countries. 2933700365125Energy Drinks For those with a high-intensity approach to life, Coca-Colas brands of Energy Drinks contain ingredients such as ginseng extract, guarana extract, caffeine and B vitamins. 29781536195 12382545085Juices/Juice Drinks We bring innovation to the goodness of juice in Coca-Colas more than 20 juice and juice drink brands, offering both adults and children nutritious, refreshing and flavorful beverages. -85725142875171450170815Soft Drinks Coca-Colas dozens of soft drink brands provide flavor and refreshment in a variety of choices. From the original Coca-Cola to most recent introductions, soft drinks from The CocaCola Company are both icons and innovators in the beverage industry. 3606165-1905002857500160020Sports Drinks Carbohydrates, fluids, and electrolytes team together in Coca-Colas Sports Drinks, providing rapid hydration and terrific taste for fitness-seekers at any level. Tea and CoffeeBottled and canned teas and coffees provide consumers'
favorite drinks in convenient take-anywhere packaging, satisfying both traditional tea drinkers and today's growing coffee culture.314325358775 13462016510 2922270318770Water Smooth and essential, our Waters and Water Beverages offer hydration in its purest form. 423545180340 -181546597790Other Drinks So much more than soft drinks. Coca-Colas brands also include milk products, soup, and more so you can choose a Coca-Cola Company product anytime, anywhere for nutrition, refreshment or other needs. Coca-Cola India In the Cola Section: In the Lemon section: In the Orange section: In the Juice section: In the Soda Water and Bottled Mineral Water section: In the Tonic Water section: In the Tea and Coffee section: Chapter 4: KANDHARI BEVERAGES PVT. LTD. 4.1: Introduction to the Company Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA)
which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parles plants and a well set bottling network, an excellent base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company. left0KANDHARI GROUP was established in 1967 by Late Mr. Teja Singh Kandhari, is presently a progressive business house in India. The groups first venture was a bottling unit as a franchisee of PARLEs soft drink manufacturing Gold Spot under license from PARLE established at Amritsar in the north Indian state of Punjab.Kandhari Beverages Ltd is among Coca-Cola India's top 4 franchisee
bottlers.Over a period of time, the Group ventured deep into Aerated Water business and expanded its scope of operations to other Indian states including Punjab, Haryana, Chandigarh and Himachal Pradesh. left0In 1993, the world renowned soft drink giant - Coca-Cola entered India and bought over PARLE brand of soft drink products, being one of the star bottlers of PARLE the Group switched to manufacturing, bottling & marketing of Coke brand of soft drink products. 4.2: CocaCola and Franchisee Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned 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. FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA 4.3: The Company 4.3.1:
MANIFESTO FOR GROWTH OUR MISSION In line with our main partner CocaCola we wish to refresh the world and in addition we further aim to create value and make a difference by making our environment a cleaner and better place to live for our future generations. OUR VISION Our Company vision as was established by the founder of our Group remains to provide the people that work in the group, be it the owners or managers a great place to work where people are inspired to be the best they can be and work with quality brands and Partners to maximize profit and productivity. 4.3.2: MANAGEMENT Mr. Nirmal Singh Kandhari, Group Chairman has been a pioneer figure in Indian soft drink industry. He was instrumental in establishing Kandhari Group as a soft drink manufacturing giant with a number of bottling units in Northern India.Mr. Jaspal Singh Kandhari, Managing Director, has been steering the Group to new heights by redefining business strategy of the family business. Mr.Jaspal Kandhari is Mr. Nirmal Singh Kandharis younger brother.Mr.Varinder Pal Singh Kandhari, Executive Director looks after the day to day operations of the group. He is the son of Mr.
Nirmal Singh. 4.3.3: HUMAN RESOURCE The Kandhari Group has more than 3000+ employees, which include around 300 professionals with various skill set and professional competence in the various industries they are handling. The Group has different project execution , maintenance teams for different application areas in Information Technology Industry. 4.3.4: KANDHARI BEVERAGES PVT. LTD. Kandhari Beverages Pvt. Ltd, Nabipur, Punjab and Baddi, Himachal Pradeshleft0The Company is engaged in the business of manufacturing, marketing and distribution of aerated water under franchise agreement with the Coca-Cola Company, USA. The Company has two mega greenfield bottling plants for filling soft drinks located at Village Nabipur, District Fatehagarh Sahib (Punjab) and Village Katha, Baddi, District Solan (HP). Present gross turnover of the company is approx Rs. 190.00 Crores. The company has also entered the power sector by setting up a 6.25 MW Wind Mill project having 5 units in the State of Maharashtra. 4.3.5: ENRICH AGRO FOOD PRODUCTS PVT. LTD. Enrich Agro Food Products Pvt. Ltd., Gurgaon, HaryanaThe Company is an
ISO 9001; ISO 14000 ISO 22000 certified unit engaged in the business of manufacturing & marketing of aerated water under franchise agreement with the CocaCola Company, USA. The most modern and fully automated bottling plant with a capacity of 1550 Bottles Per Minute is located at Gurgaon and is catering to prime areas in South Delhi and the towns of Faridabad and Gurgaon. Present gross turnover of the company is approx. Rs. 100.00 Crores. 4.3.6: GROWTH RECORD From a very humble beginning in 1967, today the Group turnover aggregates to Rs. 800 Crore approx. The Group provides gainful employment to about 3000+ strong workforce. The Group companies are fully conscious of their socio- economic responsibilities and have taken up a series of community development programs especially the funding & setting up of Rain harvesting projects to conserve the scarce natural resource i.e. water. A number of such projects have been financed by Group companies in Udyog Vihar, Gurgaon; DLF Gurgaon & Faridabad in Haryana as also some areas of Punjab. The foremost achievement of the Group is the strict adherence to system oriented quality
production along with financial discipline, leading to consistently increasing sales graph and an unblemished track record of dealings with FIs/banks. Although soft drink business still remains core activity of the Group, yet sensing increased focus on industrial activity in India, the Group has ventured out into other infrastructural projects of prime importance like Power & Energy generation from non-conventional resources and mining. 26479503384554.4: Organisational Structure 285750111125 ORGANIZATION STRUCTURE IN COCACOLA, INIDA ORGANIZATION STRUCTURE IN KANDHARI BVG PVT LTD. 4.5: Manufacturing The Company has two mega greenfield bottling plants for filling soft drinks located at Village Nabipur, District Fatehagarh Sahib (Punjab) and Village Katha, Baddi, District Solan (HP). 17145360045Manufacturing Process Processing Production Soft drink bottling or manufacturing involves five major processes, each with its own safety issues that must be evaluated and controlled: 1. Treating water. 2. Compounding ingredients. 3. Carbonating product. 4. Filling
product. 5. Packaging. The production of soft drink begins with the preparation or batching of thick, high-solid syrup. This syrup is made in a stainless steel tank by the blending of a flavored concrete containing various artificial and natural flavours (the concentrate is manufactured by and purchased from the parent company by the individual bottlers), sodium benzoate (preservative), sugar, and treated water. This syrup is checked by quality control for conformance to established company standards and then pumped to the proportioner in the filling area. At the proportioner, the syrup and treated water pass through pre-set orifices at a constant rate of flow and are blended at a ratio of approximately 1 part syrup to 5 parts of treated water. The product is then pumped to the chiller/carbonator to produce the final soft drink of the proper carbonation and fed to the can or bottle filler. During the carbonating process the soft drink is chilled to approximately 2-5C to prevent foaming during filing process. Soft drink canning line showing filling operations Returnable bottles to be filled are usually hand fed by the case onto a conveyer which carries the cases of empty bottles to
uncaser. The uncaser removes the bottles from the cases and places them onto the empty bottle conveyer. From the uncaser, the conveyor carries the bottles to the bottle washer where they are immersed in a 3-5% hot caustic solution for a specified time period and rinsed with fresh water prior to their discharge from the bottle washer. Prior to entering the filler, the bottles are inspected either visually by employees or electronically by a light scanner to insure no foreign objects or debris is left in the bottle. Non-returnable bottles and cans pass through a rinser which consists of a series of cold water spray. These sprays remove loose dust and debris from inside and outside of the containers. Eightpacks of 2-litre soft drink plastic bottles on the way to an automatic palletizer The individual bottles are then filled, discharged from the filler, and conveyed to the capper/closure machine where a crimp cap or twist-off type closure is applied. The containers are then coded an then passed through the bottle warmer. The warm water sprays inside the warmer to bring the temperature of the product to approximate room temperature. The purpose of the warmer is to avoid excessive condensation
which would form on the containers exterior if they were allowed to gradually warm to room temperature. Any condensation on the containers exterior would cause problems for the rest of the packaging involved, including label application and fiber carton packaging. After the bottles are discharged from the warmer they are conveyed to the labeler and then to the case packer where the filled bottles are repackaged into cases. The cases of product travel to the palletiser which automatically stacks the cases on a pallet for storage and shipping. 4.5: Business Plan model at KBL Let us look at the sequential system of the distribution network right from the beginning. Concentrate / syrup from CCIBaddi plantNabipur plant Plant ware housePlant ware house Regional depot house of Himachal Pradesh.Regional depot house of Punjab and Haryana. Imports of canisters ` Distribution Routes to Retail ShelfDistribution Routes to Retail Shelf Consumer 4.6: Distribution Network KBPL 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 time when it is needed by them. A typical distribution chain at KBPL would be: 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. 4.6.1: Distribution Routes The various routes formulated by KBPL for distribution of products are as follows: Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc. Future Consumption: This route consists of outlets
of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product. Examples: Departmental stores, Super markets etc. Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc. General: Under this route, all the outlets that come in a particular area or an area along with its neighboring areas are catered to. The consumption period is not taken into consideration in this particular route.4.6.2: Distribution System The system adopted by the Chandigarh Bottling Company (CBC) to distribute its products in the city is, direct on-spot delivery on on-spot demand by the retail outlet. The salesman hired by the company is accompanied by an assistant and a Market
Developer (MD). They carry all the skus in the goods carrying truck and are assigned a specific route, on which they have to deliver all the products to all the retail outlets that falls along that route, and deliver as per the demand on-spot and get paid in cash (exceptions are there). Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level. Indirect distribution: In indirect distribution, an organization which is not part of the CocaCola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management) Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products. 4.6.3: Departments involved in the Distribution process The Distribution process mainly consists of three departments: Distribution Department:
It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their set-up. Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm, records collections from distributors, periodically reconciles outstanding balances from distributors, obtains balance confirmation from distributors and follows up outstanding balances. Shipping or Warehousing Department: It dispatches goods as per approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner. 4.7: SWOT Analysis of KBL 4.7.1: Strengths DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 26,000 retail outlets.
The distribution fleet includes different modes of distribution, from contracted transportation for goods carrying task of 10tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked threewheelers. STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated that the Coca-Cola brand was worth $70.45billion. LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs. 4.7.2: Weaknesses LOW EXPORT LEVELS:
The brands produced by the company are brands produced worldwide thereby making the export levels very low. Over that even domestic demands are sometimes go unfulfilled. 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 nongovernmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and CocaCola, contained toxins including lindane, DDT, malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India. IMPORT FROM OTHER MANUFACTURERS: Import of few particular packagings from other manufacturers ads a cost to the business, like importing of cans from Pune and water from Delhi etc. But this problem will be soon removed with the establishment of new bottling line in Saha. 4.7.3: Opportunities LARGE DOMESTIC MARKETS: The domestic market for the products of the
Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales. 4.7.4: Threats IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. SLOWDOWN
IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the companys products. 4.8: Products and Packaging Details Though the Coca-Cola Company owns the innovation of 3,300 drinks including beverages, tea and coffee, fresh juices, packaged water and energy drinks but, all of them are not dominant at every place, may be due to cultural, geographic, demographic, production and demand limitations. Kandhari Beverages Pvt. Ltd. In association with The Coca-Cola Company manufactures the following mentioned brands and in mentioned packagings. The worlds favourite drink. The worlds most valuable brand. The most recognizable word across the world after OK. Coca-Cola has a remarkable heritage. From a humble beginning in 1886,
its now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic beverages in the world. Coca-Cola returned to India in 1992 and over the past fourteen years has enthralled consumers in India by connecting with passions of India- cricket, movies, music and food. Coca-Cola has been very strongly associated with cricket, sponsoring the world cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late 90s. Coca-Colas advertising campaigns Jo Chaho Ho Jaye and Life Ho To Aisi were very popular and had entered the youths vocabulary. In 2002, Coca-Cola launched its iconic campaign Thanda Matlab Coca-Cola which sky-rocketed the brand to make it Indias favourite soft-drink brand. In 2003, Coke was made available for just Rs.5 across the country and this pricing initiative together with enhanced distribution ensured that all brands in the portfolio grew exponentially. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, Cricketer such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past and today, its brand ambassador is Amir Khan. Strong Cola Taste, Macho Personality.
Thums Up is a leading sparkling soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from boys. Worldwide Sprite is ranked as the No.4 soft drink & is sold in more than 190 countries. In India, Sprite was launched in the year 1999 & today it has grown to be one of the fastest growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood for straight forward and honest attitude. Its clear crisp refreshing taste encourages the todays youth to trust their instincts, influence them to be true to who they are and to obey their thirst. Internationally, Fanta the orange drink of The Coca-Cola Company, is seen as one of the favourite drinks since 1940s. Fanta entered Indian market in the year 1993. Over the years Fanta has occupied a strong market place and identified as The Fun Catalyst. Perceived as a fun youth brand, Fanta stands for its vibrant color,
tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special time with friends. Lime n Lemoni Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from Nimbu +Jaisa hence LimeSa, Limca has lived up to its promise of refreshment and has been the original thirst choice of millions of consumers for 3 decades. Born in 1971, Limca has remained unchallenged as the No.1 Sparkling Drink in the Cloudy lemon Segment. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider of Freshness. Limcas Freshness is like no other- lime n lemoni Limca refreshness, reenergizes, rejunevates not just your body but also your emotions.The new Limca campaign takes the first step towards taking the earlier water-like freshness idea to sn emotional platform relevant for the young-adult, who pursue success and achievement, but still want freshness to rejuvenate the fun, energy, excitement and romance in their lives. Freshness of Emotions idea
stemmed from the insight about our consumer- the desire to rejuvenate her/his emotions which are constantly being dulled in routine pursuit of success. Minute Maid- A 62 year success story. The history of the Minute Maid brand goes as far as back as 1945 when the Florida Foods Corporation developed orange juice powder. The company developed a process that eliminates 80% of the water in orange juice, forming a frozen concentrate that when reconstituted created orange juice. They branded it Minute Maid, a name connoting the convenience and the ease of preparation(in a minute). Minute Maid thus moved to the first ever orange juice from concentrate. Mango. It is a fruit associated with good times like no other. Aptly called the king of fruits, mangoes are to mango lovers what romance is to a Casanova. Now imagine this delicious fruit, bottled. This is what Maaza all about. Introduced in the late 1970s, Maaza has today come o symbolize the very spirit of mangoes. Universally loved for its taste, colour,thickness and wholesome properties, Maaza is the mango lovers first choice. Maazas universal appeal was responsible for the brand being recognized
as a drink that provides wholesome family fun. Even today people hum the memorable lines-taaza mango, maaza mango and botal main aam maaza hai naam. Maaza was realiswed to be about the ultimate mango indulgence. And this was because; only the freshest, juiciest Alphonso mangoes go into a Maaza. This thought found voice creativity in the idea of Tempting the mango expert. This idea struck a chord with everyone and found a universal appeal. It was to nobodys surprise then that Maaza soon became the most loved beverage rand in India. Today maaza has come a long way to stand as the ideal way to satisfy ones craving for mangoes. Aptly framed, the line Maaza lao, aam ki pyaas bujhao symbolizes the very essence of mangoes that has been captured in a bottle. It provides consumers the most authentic experience of rich, juicy mangoes to satisfy their thirst for mangoesanytime, anywhere! Water, a thirst quencher that refreshes, a life giving force that washes away all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very substance of life, a celebration of life itself. The importance of water can
never be understood. Particularly in a nation such as India where water governs the lives of millions, be it as a part of everyday rituals or as the monsoon which gives life to the sub-continent. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with the assurance of safety from the Coca-Cola company. That is why we introduced Kinley with reverse-osmosis aling with the latest technology to ensure the purity of our product. Thats why we go through rigorous testing procedure at each and every location where Kinley is produced. Because we believe that right to pure, safe drinking water is fundamental. A universal need, that cannot be left to chance. 4.9: Competitors to KBL The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks. The key competitors in the industry are as follows: : The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends for the World's # 2, carbonated softdrink maker. The company's soft drinks
include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by CocaCola and the rest belongs to Pepsi. : Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people. : Dabur in India, is one of the most trusted brands as it has been operating ever since times and people have laid all their trust in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These
products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange.,Godrej and Bisleri: On local levels these three pose a great threat to our products. Parles Frooti, Godrejs Jumpin, and Bisleris Water and Taaza maaza are hampering the sales of Coca-Colas products on the margins.The competitors to KBL are those who are competitors to CocaCola, and not any other franchise of our competitors. Rival Pepsi's biggest bottler in Punjab is the Chandigarh-based Dhillon Kool Drinks and Beverages Ltd. Chapter 5: FINANCIAL ANALYSIS OF COCA-COLA Latest 12 Months Data Items- Latest Full Context Quarter Ending Date (2010/03) Gross Profit Margin68.8%Pre-Tax Profit Margin29.7%Interest Coverage27.0Current Ratio1.3Quick Ratio0.9Receivables Turnover9.2Most Recent DataAsset Turnover0.7Return on Invested Capital24.2%Total Debt/ Equity0.47Return on Assets14.9%5-Year AveragesReturn on Equity28.5%Return on Invested Capital25.1%Gross Profit Margin68.5%Net Profit Margin (Total Operations)20.6%Current P/E Ratio 16.95Year High P/E Ratio 26.35-Year Avg. P/E
Ratio20.712 Month Normalized P/E Ratio16.6 Financial Highlights First quarter 2010 reported net revenues increased 5%. Net revenues increased 1% on a comparable currency neutral basis, reflecting a 2% impact due to the deconsolidation of certain entities required by a change in accounting guidance, as well as geographic mix. First quarter 2010 reported operating income increased 17%, and comparable currency neutral operating income increased 9%. This was driven by a continued strong focus on cost management and the leveraging of productivity initiatives as well as favorable timing of selling, general and administrative expenses. Cash from operations in the quarter increased 52% to $1.3 billion. There were no share repurchases during the first quarter due to the pending Coca-Cola Enterprises (CCE) transaction. During the quarter, the Company announced its 48th consecutive annual dividend increase, raising the quarterly dividend 7% from 41 cents to 44 cents per common share. This is equivalent to an annual dividend of $1.76 per share, up from $1.64 per share in 2009. The PER CAPITA CONSUMPTION of Coca-Cola Beverage
Products.Figures are in LitresRevenue Growth EarningsGrowth YearEarnings2009$6.906 billion2008$5.807 billion2007$5.981 billion2006$5.080 billion YearRevenue2009$30.990 billion2008$31.944 billion2007$28.857 billion2006$24.088 billion Over the past 3 years, Coca Cola has had a respectable 8.7% in annual revenue growth.Coke has enjoyed nearly 11% annual earnings growth over the past three years. The most recent year, from 2008 to 2009, saw a 19% increase. Analysts predict 11.4% EPS growth in 2010 and 9.6% EPS growth in 2011.Cash Flow Growth YearCash Flow2009$8.186 billion2008$7.571 billion2007$7.150 billion2006$5.957 billion Dividend Growth YearDividendYield2009$1.64$3.28%2008 $1.523.04%2007$1.362.50%2006$1.242.80 % Annually, thats a cash flow growth rate of over 11%. Coke has grown stock dividends by 9.7% over the past three years. The most recent increase, from 2009 to 2010, was a 7.3% increase. The payout ratio is a moderate 56%, so the dividend is safe for a while and has room to grow.The
company has also been repurchasing shares annually. In 2009, they repurchased $1.5 billion worth of shares. Chapter 6: STRATEGIC MANAGEMENT BY COCA-COLA 6.1: Strategies POSITIONING STRATEGY It means that you try to give image to your product in the mind of the customers. To give a true and positive picture of the product is the best positioning. The company should promote its good points or comparative advantage which it has over its competitor. DIFFERENTIATION STRATEGY In order to serve your target market you introduce different things to your product so that your product can be differentiated from other products. Basis of Differentiation There are many bases on which a product can be differentiated but Coke has differentiated its product on the following base: Product Differentiation- Coke differentiate its product from its competitors on the basis of brand, quality and taste. Image DifferentiationLogo is used for image differentiation. Logo is what establishes a brand name in the consumer mind. It is the brands identification, signature and image. CocaCola has kept on changing its logo from time
to time.PROMOTION STRATEGIES Price Strategy Trade Promotion: Coca-Cola Company gives incentives to middle men or retailers in a way that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that's why Coca-Cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more." Seen as sold" They do agreements with a shop keepers and stores to exclusive sale in those stores. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives. Advertisement Strategies: Coca-Cola Company use different mediums for advertisement. Print media : They often use print media for advertisement. They have a separate department for print media. TV commercial : As everybody know that TV is a most common entertaining medium so TV commercials is one of the most attractive way of doing advertisement. So Coca-Cola Company does regular TV
commercials on different channels. Billboards and holding; 6.2: Our Competitive strategies The Coca-Cola Company is one of the largest, most successful and most widely recognized corporations in existence. Coca-Cola is a dominating force in the beverage industry and sets a very high standard of competition. Research shows that its trademark is recognized by over 94% of the worlds population. There are many factors contributing to Coca-Colas success, however, we believe that their key success factors are Marketing, Innovation, and Globalization. Marketing: CocaCola is seen as one of the founding fathers of the modern day marketing model. They were among the pioneers of advertising techniques and styles used to capture an audience. They were also one of the first companies to offer a gimmick with their product, this being a mini yo-yo. It was around 1900 when Coca-Cola began presenting their signature drink as a delicious and refreshing formula. This slogan has been repeated for over the last 100 years selling Coke all over the world. Through its intense marketing campaigns, Coke has developed an image that is
reflected in what we think of when we buy Coke and what we associate with drinking Coke. This image has been subconsciously installed in our brain by the advertising campaigns that show Coca-Cola associated with good times. Innovation: Coca-Cola has been able to survive and grow in an ever-changing market because of its ability to systematically innovate and deliver new products. In the late 90s the company, typically showing earnings growth of 15-20% per year, turned in three straight years of falling profits. It was apparent that the market was changing and in order to keep up with these changes, Coca-Cola had to move from a single core product to a total beverage company. This was a major change because their past success was base on having one successful core product. Coca-Cola began to employ a strategy referred to as play to win innovation. The company began operating in a decentralized environment that was unfeasible in previous years. Now Coca- Cola offers nearly 400 different products in and is still dominating the beverage industry. This is made possible by the companys ability to innovate and adapt to changing markets. Globalization: Todays big business
takes place on a global scale, and CocaCola is no exception. Technology is continually changing business, and these constant changes have been making it more feasible and profitable for businesses to expand their operations globally in order to serve all different types of diverse markets around the world. This global view is reflected in Cokes recent Id like to teach the world to sing commercial. Coca-Cola is taking advantage of the large revenue opportunities made possible by participating in a global market and now offers products in 200 countries around the world. 6.3: Industrial Environment and 5 Forces Model for Coca-Cola Bargaining Power of SuppliersThe bargaining power of suppliers is very low. As the coca cola company have developed captive suppliers & entered into a contract. So the company is not at the mercy of the suppliers.Threats from SubstitutesFruit JuicesWaterOthers Cold BeveragesExisting Competitors Pepsi Parle Other Local BrandsThreats from New EntrantsAs there is no report of any new company entering the Beverage market.Bargaining power of BuyersThe bargaining power of buyers is very high due to the presence of various brands and also
the unorganized sector. This gives the buyer a wide variety of brands to choose from. There is additional pressure from buyer to introduce schemes and reduction in cost. Applying Porters 5 forces allows the garnering a retrospective view of the potential attractiveness in terms of profitability of the company. Analyzing the beverage industry will also allow a more accurate outlook on its potential. 6.4: COCA-COLA COMPANY- THE SWOT ANALYSIS The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor and marketer of Non-alcoholic beverage concentrates and syrups, in the world. Coca-Cola has a strong brand name and brand portfolio. Business-Week and Inter brand, a branding Limca Common drink. Fanta basically preferred by Ladies and Kids. Maaza is branded for mango lovers be it a kid a woman or a man. Sprite defines for the straight attitude of todays youth. Kinley Soda Mostly those who consume liquor Consultancy, recognize Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2008. The Business Week- Interbred valued CocaCola at $67,000 million in 2008. Coca-Cola ranks well ahead of its close competitor
Pepsi which has a ranking of 22 having a brand value of $12,690 million; The Companys strong brand value facilitates customer recall and allows Coca-Cola to penetrate markets. However, the company is threatened by intense competition which could have an adverse impact on the companys market share. SWOT Analysis StrengthsWeaknessesInternalPopularityw ell knownbranding obvious and easily recognizedA lot of financecustomer loyaltyInternational TradeWord of mouth lack of popularity of many Coca-Colas brands Most unknown and rarely seen result of low profile or non-existent advertising health issues Threats OpportunitiesExternalchanging healthconsciousness attitude legal issues Health ministerscompetition (Pepsi)many successful brands to pursueadvertise its less popular productsbuy out competition. More Brand recognition Chapter7: FUTURE PLAN-A LOOK FROM PRESENT Maximise Company and bottler long-term cash flow.Attract, engage and retain the best talent. Develop and deploy the worlds most innovative and effective marketing.As we look ahead to the year 2020, we see
tremendous growth opportunities for our franchise system and for the entire nonalcoholic ready-to-drink beverage industry. We are working closely with our bottling partners around the globe, leveraging our scale and the increased presence of our brands. We remain confident in our ability to deliver against our strategies while laying the foundation for consistent, profitable and sustainable longterm growth, inspired by our 2020 Vision in a growing world of refreshment."Aggressively increase the value of our portfolio.Think and act like an integrated global enterprise while intensifying our local focus. Become a critical part of our customers growth strategies.Create competitive advantage by fulfilling our Live Positively commitments.Design and implement the most effective and efficient business system.KBLs future plan is just to track ways to strengthen their position in the market more firmly and not only to strengthen old relations with a decade long known retailers but also with the evolving novice in the market. Other areas of improvement include, effective planning of distribution system and acquiring a good work force i.e. strengthening bond with hard
smart and hard working employees. The short term goals, as always, include the effective removal of breaking flaws between Coca-Cola and retailers. The main vision of KBL is to induce such a perfection in their market execution such that it converts its all outlets to RED accounts i.e. all 26,000 outlets to be under RED standards. Chapter 8: THE PROJECT 8.1: Executive Summary Coca-Cola, the product that has given the world its bestknown taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through one of its largest bottler, KBL, the North Indian bottling arm of the Coca-Cola Company. The main objective of this study lies in studying the market of the SSD (sparkling soft drinks) brands by Coca-Cola and understanding the consumers perception and opinion about the products, with more inclination towards the study on market of juices and Kinley water & soda,
and the respective competitors analysis. This report gives an insight to the current scenario of our products in Hotels, Clubs, Hospitals and Govt. canteens segment. This would be a direct attempt to point out the flaws prevailing this segment of market and possibly the better way to overcome them through detailed study of this segment, as is done in this project report. This is an opportunity to peep into the psychographic status of the people working in this segment and predict the possible way out of nondominance in this market. This report will provide detailed information about prevailing market competition and thus prepare itself to meet the market challenge by making adjustment in its new strategy and promotional activity, particularly for the Hospitality Segment. The project begins with in-depth interview with the owner of retail outlets, as primary source, to extract the reality on ground level about retailers psychology as our distributor and competitors position and strategy. The third need was to know the psychographic needs of our consumers, which was achieved by feedback/questionnaire process among 50 to 80 youngsters. The conclusion drawn from the quantitative and qualitative
(Q2) analysis of data via graphs and open ended feedbacks, are represented in under the tag of gap analysis/grievances and implications/suggestions. 8.2: Objective of this Report The main objective of this report is to evolve an increased change in the Sales of Coca-Cola Brands in Hotels, Clubs, Hospitals and Govt. canteens. The task would be mainly to graph out the psychology of the retailers who sell our SSD brands, Juices, Water and Soda. The first and foremost task is to identify the flaws in our service system to the retailers, which in turn hurts the sales of Coca-Cola products. The next step involves identification of potential markets and recognition of opportunities where the visibility and availability of our products can be increased. The only task left after identification of problems and opportunities is to frame strategies which will eliminate the flaws and take advantage of the opportunities.8.3: Critical Literature Review There has been a lot of fuss regarding the carbonated soft drinks and pesticide issues, despite all the demagnification the slowdown in the business is not evident rather after a slowdown in 2007 it has gone drastically
high in the current scenario. The most important fact to be mentioned here that the report concentrates on the market segment of Hotels, Clubs, Hospitals and Eating & Drinking points in Govt. offices. Until now there is no such effort evident from references which have looked upon the hospitality segment in the domestic market of Chandigarh. The work clearly shows a lot of gap into this segment. 8.4: Research Methodology In order to look deeply into as to what is the positioning of our products in consumers mind, a direct interaction is a method to come to a conclusive view. The purpose of this report is to provide a roof-top view of Retailers perceptionConsumers perception Competitors analysisThese three concepts will frame the problem accurately and as it is said that a problem well defined is half solved. As retailers are KBLs first consumer and first step into the market and it is very necessary to keep a strict watch on all the networks to these retail outlets. So the direct method adopted was to do in-depth interview of the retailers, demanding both qualitative and quantitative data from them, which throws light not only on retailers perspective but also on the
consumers perception and a clear picture of competitors position against our market strategies. Since more focus is on the market of juices, water and soda, so it can be said that the major part was causal research for the above mentioned products. Moreover to watch the accurate position of the competitors in the market, there was no better source at ground level than these retailers. The questionnaire so designed was to extract information from retailers about their view of discrepancies in the system and what our end-consumers react to our products and to our competitors product. Another questionnaire was conducted straight on with our end consumers to analyse their perception about our products and their preferences with reasons. So these two approaches provide a wide three-tier feedback structure which will help the organization to identify and broom away the flaws as nicely as it can. Chapter 9: INTERPRETATION AND ANALYSIS A format was designed in which ninety-five percent of quantitative data was fed, through direct interrogations with the retailer and references to their sales book, so that the data could be verified appropriately. The
database so collected would be analysed to calculate the Current Scenario in the target segment in CHANDIGARH only. The format and the database are in the Appendix1 at the end of report. 9.1: Data Interpretation In this section the database so far collected would be mathematically construed to evaluate certain parameters so that the current scenario can be inferred substantially. Abbreviations: KO- Coke, S- Shared account, PC- Pepsi Co, KS-Kinley Soda, BL- Bisleri, AQAquafina, KW- Kinley, LH- Lehar Soda, RgbReturnable Glass Bottles, LC- Local Brand. We would be calculating market share in terms of outlet captured for sales and also in terms of consumption from all the possible outlets. It would help us to picture our position and that of our competitor mainly Pepsi Co and other local brands hampering our sales by playing on margin basis. We would be phrasing the market of juices and specially competitors to Maaza, Pulpy Orange and Nimbu fresh. The prevalent market of Jumpin, Frooti and local brands is a concern in the Hospital and canteen segment. Many more are of concerns would be looked upon and analysed statistically below. The data might partially
vary to the latest of yesterdays data because, the consumption and sales scenario changes every day in the beverage market. 9.1.1 Market Share Outlet Wise Hospitals & Canteens PC 10% KO - 53.33% S 36.66% Hotels & Clubs PC 51.1% KO 40% S 8.9% The above graph shows the outlets captured by Coca-Cola and Pepsi Co. and the percent of outlets which are shared by both of the beverage producing companies. In short the red and blue area shows the monopoly accounts of Coke and Pepsi respectively. 9.1.2: Consumption of Beverages in Form of Pack Sizes Hospitals & Canteens Rgb40.7% 500ml-29.7% 2lt-14.8% Cans-1.85% Tetra Pack- 9.26% Hotels & Clubs Rgb-68.75% 500ml-6.25% 2lt20.8% Cans-4.17% The figures show the percent of a particular packaging prevalent in both the segment. In both the segment the highly consumed packaging of beverage products is Rgb. But also it has to be taken into notice that in Hotels with consumption of more than 15 cases per day use largely the 2lt packaging. Cans are served when diet coke is into consumption mainly. The tetra packaging is widely
needed to serve the juice segment especially in the Hospital segment. 9.1.3: Consumption of Juice Brands Hospitals & Canteen Tropicana-22.2% Mango drink- 33.3% Real-25% Lemon Drink-19.44% This figure shows the occupancy of market by different juices. Next we shall depict the dominance in consumption of brands in their particular segment of juices. The market is almost into a cut throat situation with almost equal consumption rate to each, including local brands too. Maaza still holds a good stand due to consumption of its rgb in large scale in the hospital segment. Mango Drink The major threat to Maaza is Frooti and the local mango drink by Bisleri. They win over the situation due to better margins which they provide to retailers. This segment is majorly occupied by Nimbooz by 7up, with its sku of rgb, tetra and pet. Nimbu Fresh is yet not so strong in this segment due to availability issues.Though in whole market, lemon drinks do not hold more than 11% of market.Lemon Drink Hotels & Clubs Tropicana-34.6% Maaza & Minute Maid12.5% Real- 53.8% The Hospitality segment is mainly captured by Real and
Tropicana. The main reason why this market is dominated by Real is because of its wide use in Mocktails due to its range of different juices and the same is for Tropicana. The only reason why Real is more prevalent because of its earliest entry to the market which established the preference in tastes to Mocktails. Mango drinks do not have any place in here. 9.1.4: Consumption of Water Brands Hospitals & Canteens AQ-15% KW-40% BL & LC-45% Hotels & Clubs AQ-34.8% KW-46.6% BL & LC-18.18% Despite more occupancy of Pepsi in hospitality segment the Kinley seems to make a good consumption average, but has a big fight to the Bisleri and other local brands which seems to replace it in even those segments which is our monopoly account. 9.1.5: Consumption of Soda Brands Hotels & Clubs LH-53.1% KS-17.2% EQ/LC29% Soda market is present in hospitality segment and obviously not in hospital and canteens. Again here despite Pepsi prevalent in hospitality segment Kinley Soda stands as a strong brand as a choice of soda consumers. Still the threat of local brand is evident as Equal stands as a very good choice for low scale hotels because it
gives better margin fight. Lehar and Equal holds a firm position in this market, but somehow Kinley Soda stands as a brand of elite choice. 9.1.6: Visicooler Upgrade Hospitals & Canteens Hotels & Clubs In this reading Pepsi has an upper hand in SGA placement in the market of hospital canteens and hotels segment. Also the feedback from the retailers state that Coca-Colas SGA placement policies are rigid. But improvements have been made to place SGA at a large scale into the market. The yaxis represents the number of visicoolers. 9.1.7: Average Consumption/Day Hospitals & Canteens PC-21.05% KO- 78.9% Hotels & Clubs We see that even here, despite very good market occupancy in hospitality segment Coca-Cola still stands quite high against Pepsi. From this it can be clearly inferred that even an inch of step forward would help us take a long leap in this segment. 9.1.8: Market Occupancy in Hotels Sector Wise Though there are hotels in almost every part of Chandigarh, but the main cluster lies in these sectors. While sector 35 and 22 consists of hotels which are 10-12 years old,
while many have been reconstructed to new ones and the upcoming modernized hospitality segment lies in sector 43. The yaxis represents the number of hotels. These types of retail outlets are primarily dominated by Pepsi, but as seen earlier, Coke still give a tough fight in terms of increased consumption. 9.2: End Consumer Questionnaire Analysis This questionnaire was conducted amongst youngsters who are beverage food freaks. It was a minor attempt to know their preferences and how they rank our products against our competitors. The questionnaire was more focused on Maaza, Minute MaidPulpy Orange & Nimbu Fresh and Kinley Water, because these brands are struggling in the target market. This is an attempt to relate the normal preferences of consumers mainly to the hospitality segment. The questionnaire format is in the Appendix2. 9.2.1: Age Classification The Questionnaire was conducted among youngsters mainly in the age group of 16 years to 23 years. The reason was to know the positioning of brands in youths mind. This will help us know the new age preferences, which would help us to plan out the approach to modernized outlets in the
target segment of hospitality. The questionnaire was conducted among 52 people. 9.2.2: Regular Consumption Yes-61.5% No-38.5% The graph shows the part of sample size who are regular consumers of coke and who are not. This projects that the consumers of coke are loyal to a great extent. 9.2.3: Awareness of other brands of Coca-Cola Yes-46.1% Partially-11.5% Few-21.2% No-19.2% Though Coca-Cola stands as the worlds most consumed and popular beverage producing company, people are still unaware of brands which lie under the roof of Coca-Cola. The graph shows the awareness frequency. 9.2.4: Preference in Mango Drinks The consumption of Mango drink is one of the most vibratious markets in beverage market. Nationally Frooti, Maaza and Slice are few of the oldest brands. The graph depicts the choice of Maaza to be more than over other brands. 9.2.5: Opinion on Minute Maid Pulpy Orange The graph depicts that many among the sample size have tasted the product and maximum of them found it very good and good. The orange drink market is not so flourished as that of mango drink market, so probably pulpy orange is
also one of its own kind in the market. 9.2.6: Opinion on Minute Maid Nimbu Fresh The graph depicts many out of the sample size have not tasted the product yet. And the one who have tasted, maximum found it either very good or average. 9.2.7: Preference in Water Brands The graph clearly projects the strong branding of Bisleri in the domestic market of Chandigarh. Next to it stands Kinley, largely preferred because of brand name. it would a challenging task to have a share fight with Bisleri. 9.2.8: Coke and Consumer Category1 - consumers who cant live without coke. Category2 - consumers who can survive if nothing better is available. Category3 - consumers to whom it hardly makes a difference. The graph depicts that to maximum in sample size product loyality hardly matters while to some, they are simply loyal about it, such that their feedback is positive in every aspect. The questionnaire conducted is of significance, in order that the feedback for the Minute Maid gives a quite clear picture about its current image. The result for Kinley was as expected, because Bisleri is the most prominent in the domestic market of Chandigarh. 9.3: Some Specific
Observations Certain observations about the segments been scrutinized is necessary be pointed out at this juncture. Hospitals Our consumers in hospitals can never be rated as loyal customers because the volume of people consuming the products is highly variable. Therefore, the visibility through availability works better in this segment. And that of in Govt. Canteens are constant, but loyality factor is immeasurable because as the job is of fixed time the choice of beverage being consumed depends on quite a few factors which are immeasurable. Therefore in both the cases visibility plays an important role. Hotels The consumer characteristic shows high level of inflexibility. In this segment, the consumers have firm held preferences or priority over brand due to the affluent nature of consumers. Especially in the bar or lounge segment, the taste factor or even the recipe factor is a big parameter of consideration. While the Club segment is still of flexible nature. 9.4: Q2 Analysis In this section the view on the output of analysis will be mentioned along with the areas of concern and potentialities. 9.4.1: Trend Analysis The current trends
below states the present situation in the target segment specifying on some products. Hospitals and CanteensCoca-Colas csd products have high sales due to high demand.Maaza share is being eaten up by local brands providing high margin to retailers.Tetra packs are in quite demand in this segmentKinley share is also eaten up by local ones due to the reason of margin and also Bisleri being proffered due to brand name establishment.Hotels and ClubsMango juices are not in demand for mocktails.Minute Maid Nimbu Fresh still has not entered the lounges or bars.Csds can be easily pushed because of a bartenders first choice in bars.Pulpy Orange cannot be promoted in bars because of pulp. 9.4.2: Gap Analysis It is mentionable here that the removing minor flaws are very important to keep the retailers at our side. The general problems or specifically the gas between us and the retailers are: Supply issues- many compliant about the delays in delivery.Unavailability of required stock on the delivery trucks.Bulk buying customers need to be provided with timely delivery.Complaints about no replacement of non-consumable articles in
delivery.Compliant about no replacement of leakage/breakage.Large amount of visi problem in market not entertained.Bulk customers demands on some issues of fridges are not entertained timely.Somewhere giving of undue promises is a matter of concern too.These flaws in the working system are may be due to illdelegation of work on small levels. But we witnessed a great change in the distribution system and the internal system of the organization during the period of internship, and many of the flaws were removed drastically by the end of this period. Another matter of concern, out of observation, is non co-ordination with national level of promotions. This is in reference to Minute Maid Pulpy Orange. Last year witnessed a wave of national level of media promotions on large scale, but the domestic availability was poor, which was one reason that many still dont know the taste of this product. And the vice versa for Nimbu Fresh for the current season, the domestic ground is nearly flooded but no media promotions at large scale. The csd products have been placed quite well this season, and are flooded quite well in the market of
Chandigarh, with all activation processes being executed timely. 9.4.3: Implementations/ Recommendations On the basis of market reading, following steps may be beneficial: A special sales team to deal this kind a high profile hospitality segment.With people becoming health conscious, Maaza, pulpy orange and minute maid can be promoted in hotels and clubs by including them in menu card.Juices can be placed to small events like parties, gathering and kitty parties in hotels and clubs.Shelf display can be there in bars.Providing OYA to small scale hotels to convert them into a monopoly accounts can be helpful.Tetra packs should pushed more in hospitals as they are in more demand there, and then it can compete well with the other juices in the market.Kinley water now should be pushed since packaged water price has increased, communication of idea the margin on Kinley is now more than on other brands. Since in this segment the preference can be changed over the visibility factor because, how does it matter what brand is consumed when thirst is high.Since the consumption of Coke brands are high in hospitality segment, we need not to concentrate highly on low consuming hotels,
in fact focused should be more on capturing novice high consuming ends and maintaining strictly the present buyers.Competing Real or Tropicana in the market might not be possible until we have our own range of juices.Educating the hospitality segment that our association with them is not just as a provider, rather its a joint venture where food and beverage should promoted as one entity and results will be much more high than expectations. EXECUTIVE SUMMARY Kandhari Beverages in association with Coca-Cola Company has been manufacturing the Coca-Cola products since 1993, and since then the overall market share captured by the company in the area of Chandigarh is approximately 80%, and has been marketing the products to its own discretion. The company follows certain conventions to be carried out on a daily basis, which were constituted by The Coca-Cola Company, Atlanta. These conventions are termed as RED norms meaning Right Execution Daily. The company also follows, executes and completely supports the promotional activities as enjoined or prescribed by CocaCola India. Apart from norms assigned
by CCI, the company as an individual executive identity, it carries out certain operations including customized research and implementation procedures which are formulated to fulfill the mission and vision of the collaboration. The work of an employee in a beverage company increases many folds in the peak season i.e. summers. The availability of products, their visibility and to follow the segmentation model near to accuracy is the motive of these market research executions. Each and every activity is of equal importance, since they all are interconnected as a consequence. All the activities were carried out to fulfill the goal of maximization of profits via maximization of sales of our products. The explanation of all these activities is there henceforth. This report will also give insight to the companys norms to maintain standards, the production process, their strategies to keep up with their retailers, companys approach towards the sales of SSD and most importantly this report will provide an opportunity to know the psychographic needs of the retailers which in turn shows the company an avenue to create a good future plan. Chapter 10: SEGMENTATION MODEL -- RED Outlet Structure of the Coca Cola in India The outlets can be classified as per three criteria: Consumption PatternVolume PatternShoppers ProfileSEGEMENT E & D Convenience Grocery E & D : Those outlets where people visit to ear of drink are known and eating and drinking outlets. Such as Restaurants and Hotels, Dhabas. Convenience : Convenience outlets ate those outlets where people visit regularly for various purposes like stationary shop, S.T.D Booth, Betal Shop and general Store. Grocery : Those outlets where people visit to purchase food grains and any of such things for future consumption are called as Grocery shops. Based on Volume Pattern According to the volume sale in the outlets the company has adopted a unique policy of categorizing the outlets in four different segments such as: DIAMOND - Those outlets, which give an annual sale of more than 800 crates of Coca - Cola products, are listed in this segment. GOLD- Those outlets, which give an annual sale of less than 200 crates of Coca - Cola products, are listed in this segment. SILVER- Those outlets,
which give an annual sale in between 200 to 499 crates of Coca - Cola products, are listed in this segment. BRONZE- Those outlets, which give an annual sale of less than 200 crates of Coca-Cola products, are listed in this segment. 2743208890 CONCEPT OF RED: Kandhari Beverages Private Limited, Under Eurasia Operating Group has been working on RED i.e. Right Execution daily since 1993. Coca-Cola Company believes that its success depends on their ability to connect with consumer by providing them with a wide variety of choices to meet their desire, needs and lifestyles choices. Companys success further depends on the ability of its people by execute RED effectively every day. Market Segmentation Under RED. Coca cola companys market can be segmented in RED along 3 lines- channel cluster, outlet volume and locality income. Number of shoppers or consumer in the given universe: Coca cola attract the population by executing the following activities. Bringing the cooler at the entrance.Fixing the standee, sign at the entrance.Fixing the combo Board at the entrance.How coca induce for the incident? By putting cooler in prime
position.By keeping the cooler pure & clean.By doing Rack Display.By fixing combo Board.By doing Table activation.Counter Top Display.Outlet Activation According to RED (Right Execution daily) RED (Right Execution Daily): It means to maintain the visional according to a fix set of coke product which is known as COLOJ-K, it means the set will follow a particular brand order. Thums-Up will take first place after t.4.at sprite or Limca , Fanta, Maaza and water or soda will take this RED also take care of the S.G.A ( Sells Generating Assets) Activation Activation means doing things in and around the coke outlet that triggers Consumption / Purchase of Coca-Cola Products. The important parts of activation are: Placement of visicooler at Itot spot location Availability of the products.Right location of display racersImpactful Communication of price messageThe visicooler standards of all the channels: LowMediumHighDiamond20c/s20c/s20c/s Gold7c/s9c/s9c/sSilver4c/s4c/s7c/sBronzeIc e BoxIce BoxIce Box To measure the impact of Right Execution Daily (RED) a survey is done by A.C. Nielsen (a consultant) every month. A.C. Nielsen
conducts a survey by visiting all the RED activated outlets and benchmarks it on the prescribed Merchandising standards of RED. To create the Red Report A.C. Nielsen asks a set of question from the retailers which are as follows: Related to Visicooler: Is Cooler in the Hot Spot Location?Does it have all the products of Coca-Cola available?Is the display of the Coca-Cola display of the products in a standard such as sprite, Thums up, Maaza, Fanta and Limca",)Is coler working properly?Is the cooler pure?Related to Price Communication: Is there proper price display of the products? Related to product availability: All the brands should be present in the every distribution channel but main concern is that 300 ml should be present in the every channel and 600 m1 and 1.5 litters per bottles should be present in the Eating and. drinking, convenience and Grocery shop. Chapter11: SAMPLING BY CCI Objective of Sampling The Sampling was conducted to promote Coca-Cola as a symbol of joy and happiness while taken along with meals. Thus the motive of sampling was the promotion of idea Food with Coke. This sampling was
conducted in Eating and Drinking Joints all over the Tricity. There were two way conduction process for this sampling to be mentioned, that I learned from this sampling. Both would be discussed sequentially. Sampling The Sampling as mentioned above was conducted to promote the idea of combination of Coke with Meals. I was part of the sampling process for the first day on contract basis and had an opportunity to read the consumer behavior for coke at ground level. I was appointed to conduct sampling at Pind Baluchi. After the customers were over with their meals with coke, a feedback process was also conducted. Few observations made during the process: About 90% of customers preferred having coke along with their meals, irrespective of all ages.The feedback forms suggested that coke has earned loyal customers, as the consumers preferred coke over any other brand, though it was just about coke and no other brand.The communication of idea, coke with meals, seemed to already exist in the present culture, the sampling process just made the idea more physical.The process can also be termed as, revitalizing the brand image.The amount of sampling targeted was 5 cases
per outlet per day. Earlier the sampling was done with 300ml coca-cola, but later it was switched to 200ml packing. The sampling was conducted for three days every weekend for 5 weeks. Every outlet was appointed with maximum two promoters who were made equipped with a promotional banner of coke, feedback forms, a coke tshirt and chilled stock. The promoters were strictly instructed to not to get involved in consuming some other brand during promotions and were briefed on their conduct and approach towards a customer. There were many changes that were made during the execution of sampling to make the activity more effective. The feedback form is shown in the Appendix3. Evaluating the Impact of Sampling Conducting the sample process is just not enough, its impact has to be checked and for this purpose visit was planned twice and a format was designed to evaluate the impact statistically. Objectives of the evaluation visit: Firstly the visit was planned to give a check on the execution of sampling as toIf the communication of idea is successfully made by promoter or not.If there is no discrepancy in the complete usage of stock
other than in sampling.If no manipulation was done on the feedback forms by the promoters.Secondly to evaluate the impact of sampling on the sales.This sampling evaluation was carried out in nearly 30 outlets. The visit generally used to start with conversation with the promoters and then a short interview with the retailer according to the format designed. Few important parameters in this regard are as follows: FootfallCustomer classDuration of samplingSales readingbefore samplingon samplingafter samplingSales reading was the most important parameter to evaluate the Sampling process. The observations recorded in the designed format are in Appendix3. Though the impact of sampling as stated by the retailers suggests that it was fruitful only for the purpose of brand name revival, the market still shows sales increase on account of sampling. But the major confusion lies in, as for whether the increase in sales was the result of sampling or the demand due to summers. Thus the evaluation process needs to be enhanced for the next sampling process. Chapter 12: MARKET IMPACT TEAM This was an aggressive initiative to watch the market
closely on all aspects, right from availability issues to visicooler problems, and to all kinds of complainitive issues. The teams of three to four members were allotted areas where they were supposed to conduct RED and to look for all the discrepancies related to each and every outlet in the allotted area. Market Impact Team is an effective tool to identify all the flaws in system at ground level and it uses the human resource to the fullest. This activity was conducted every Friday and Saturday of the week, so that the improvement on sector wise report can be conducted during the weekdays along with the sales activities, and then again the activity was conducted next week to watch out the effective improvements and still left issues of concern. The team was handed with a format, designed specially to record information for each and every outlet, along with a small feedback column. The main objective of this activity was to mainly seek out the availability issues for each of the skus in every outlet. Steps taken during the execution of Market Impact Team: COLOJ-K formation.SGA position, capacity and up gradation.100% SKU presence.Complaints (delivery,
leakage, breakage and visi problem)/ identification of flaws.Educating retailers on certain issues of visi service.Each visit to the market for this task usually covers 30-35 outlets /two sectors for the maximum output. This activity was a main contribution in understanding and reading the market of coke very well. RED being conducted along with it, not only made us understand the organization and its working but also, MIT made us understand the market in which coke is operating in Chandigarh. The format design to record data during MIT is given in Appendix4 and a sample MIT with its report is also given in same Appendix4. Chapter 13: OPEN REVIVE GROUP (ORG ACC) Open Revive Group stands for those accounts which we suspect to be under the surveillance of ACNeilsen group, for the purpose of ranking under the RED activation standards. ORG accounts are taken into much more consideration in terms of availability of all brands and visi purity and most importantly billing of every delivery, containing details of all skus delivery, so that all our brands comes into consideration while market review by ACNeilsen. ACNielsen is a
global marketing research firm, with worldwide headquarters in New York City. One of ACNielsen's best known creations is the Nielsen ratings, which measure television, radio and newspaper audiences in their respective media markets. ACNeilsen in context to coke, conduct execution to calculate market share and rank among its competitors. It makes a visit to its untold RED outlet and checks on every aspect of our standards. They check the billing records of that outlet and record the opening and closing stock, to evaluate the total sales monthly. This is the reason why bill execution in proper manner is required along with availability of all skus in these outlets. Problems encountered with org accounts: Maintenance of bill records is not an absolute activity. Though many outlets maintain it but this maintenance is required to be 100%.The billing is sometimes not done properly, which means that many a times some skus skips the billing.The main concern for these accounts lies in appropriate billing plans, so that we should not have a back fall due to this negligence. Efforts made and more suggestions: If billing is so important, then the maintenance of billing records by
an outlet should be rewarded with minor discounts.Discounts should be made according to the skus so that indirectly outlet is pushed to buy all the skus.Stock check should be regular so that, even if bills are not maintained the present stock should make up for it.We worked with the Market Research Executive on this issue and a discount plan sku wise was planned for org accounts, for the maintenance of the bills. The random visits planned to these outlets were supposed be check on availability of stock, and the format designed to be recorded is in Appedix. Chapter 14: ROUTE TO SALE vs. PRE-SALE Kandhari Beverages Pvt. Ltd. has been following the system of Route to Sale since the beginning. We never tried pre-sell to execution until Pepsi started its work on it. PRE-SELL METHODOLOGY A selling methodology consisting of two parts : Order Generation Delivering the Pre-sold order COMPARISON PRE SELL Works on a proper beat with a defined PJP Pre-seller generates orders in advance High capacity utilization of delivery vehicle Company gets control over retailers High distributor ROI CONVENTIONAL Salesman works without a proper PJP Salesman generate orders and deliver goods at the same time Low capacity utilization of delivery vehicle Companys span of control till distributor Less distributor ROIFEATURES A Pre-seller generates orders in advance after activating the outlet . He also communicates the scheme and promotional offer apart from carrying out his executing an outlet responsibility Backend activities like invoicing, delivering stocks, collecting cash & glass are carried out by others Delivery vehicles are loaded as per the orders, leading to a very high capacity utilization & negligible shortage of brands / pack to the retailer Company gets control over retailers OBJECTIVE Improved Execution Reduced manpower through better utilization of MD resources Increased vehicle utilization (90 % ) Improved Market control The summer trainees were allocated the task to experience the pre-sale concept and we were assigned an area to conduct the pre-sale for Coca-Cola brands specially 200 ml packing. This activity was continues for four days. The designed order sheet is in appendix5. The only conflict we encountered with this activity was that retailers were reluctant to order anything else than 200ml. This was so because they were trustingly dependable on route to sale. The little experience with this activity suggests that sales will not be dependant only on salesman but would also utilize the resources of market developers. ROLE REVERSAL Role of salesman reduced to deliveryman. Market developer will not only have to do execution and open new account but they will have to generate orders as well . Thus market developer will also act as salesman. Sales executive needs to act as mentor and conduct morning and evening meetings daily. Constructing pre-sale format would include Route RestructuringAssigning ManpowerBuilding back end supportChapter 15: PRMOTIONAL ACTIVITY CocaCola and its brands have made their mark in the market and people identify with our products very well. The main reason for this has been the aggressive media marketing across the country. Now every brand of Coca-Cola is strongly positioned into its target segment, with the help of advertising, which everytime features an icon or celebrity
that helps connecting the nation to the product. But on the smaller scale some more efforts have to be made to revive the brands in local areas. And also apart from these there are many more efforts that are made to maximize the profit of the organization. The ultimate objectives of our business strategy are: To increase volumeExpand our share of worldwide nonalcoholic ready to drink beverages saleMaximize our long-term cash flowsCreate economic value added by improving economic profit.These objectives are achieved through the help of promotional activities. The different types of tools used by KBL are as follows: UTC (Under the Crown) offers: there three types of schemes under thisMoney cash back offer : in this scheme either the retailers or end consumers are offered cash according to the inscriptions under the crown.Coding SMS : in this scheme either the retailers or the end consumers have to avail the sceme by SMSing the code mentioned under the crown.UTL(Under The Label) : in this scheme the offerings are mentioned under the labels of PET packagings, they can be either monecy cash back or coding SMS.Weekends offer : this scheme runs for
the retailers in which they are offered more margins through discounting or for end consumers it is run as Best Price offerings with lesser prices.Impulse Generation: The activities under this heading involves activation of physical forms like Glow Sign Boards, Flexes, Posters, Danglers and Flendges.RED Execution : it is done with one main big purpose of creating impulse. It promotes impulse branding.Events : events are organized like moving showcase trucks and sponsoring media events.During our period of internship we got involved with Sprite UTC Scheme and Event Sponsorship for charity event by Rani Breast Cancer Trust. Facilitating the Product by Infrastructure For providing the product in good manner, company has provided infrastructure which includes: Visi cooler Freezers Display racks Free empty bottles and shells for bottle Sale Promotion Coca-Cola Company also does sponsorships with different college and school's cafes and sponsors their sports events and other extra curriculum activities for getting market share. Normally they keep their freezers near the entrance of the stores. Sale Promotion Company also does sponsorships with different college and
school's cafes and sponsors their sports events and other extra curriculum activities for getting market share. Getting shelves Coca-Cola gets or purchase shelves in big departmental stores and display their products in those shelves in that style which show their product clearer and more attractive for the consumer. Eye Catching Position Salesman of the Coca-Cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores. Conclusion Working with such an organization on ground level gave a rich experience about the ground realities of beverage market. Understanding the organization and moulding the novice thoughts to their benefit is another experience. The ground level is as real and harsh side reveals at times, when talking to a buyer really turns into an argument. Many a times we had to deal with harsh people politely too, but diplomacy in that was a learning. Understanding working culture and witnessing the change in system during our work period inculcates high values of organization into us. The study makes us conclude that, Coca-Cola
has the biggest consumer market against any other beverage producing company. It is the number one brand just because people love it and those who love it, they love it by all means i.e. brand loyality. It has a big market share because of demand and this is the why the bargaining power of suppliers is weak. And our consumers love it so much so that prices hardly matters for them. But specifically for the Hospitality segment we are yet to cover the gap and that can be done if we introduce more taste in juice segment. Working in association with Coca-Cola feels us very proud to be a part of such a lovable global brand. Appendix Appendix1 Appendix 2 QUESTIONNAIRE1. Consumers name: ___________________________________ ______________2. Age: _____ Gender: M F 3. Are you a regular consumer of coke? a.Yes b. No 4. Do you know the other colddrinks/brands by Coca-Cola? a. Yes b. No c. Partially d. Few5. Which mango juice do you prefer? a. Frooti b. Slice c. Maaza d. Jumpin e. Mr.Fresh6. Why? a. Taste b. Brand name c. Price d. Packaging e. Any other reason______________________________ ________________________7. Have you
ever had Minute Maid Pulpy Orange? If yes den how did you find it? ___________________________________ __________________________________8. Have you ever had Minute Maid Nimbu Fresh? If yes den how did you find it? ___________________________________ ________________________________9. When you are thirsty, which brand do you pick? a. Bisleri b. Aquafina c. Kinley d. Fresh n Cool e. Himalaya f. Qua10. Why? a. Taste b. Brand name c. Price d. Packaging e. Any other reason______________________________ _________________________________11. You and coke? a. cant live without it.b. I can survive if nothing better available. c. hardly makes any difference to my life.Any suggestions or feedback.._________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________ Appendix 3 Appendix 4 Appendix 5 Bibliography http://www.cocacolaindia.comhttp://www.thecocacolacompany.comhttp://www.worldofcoca-
cola.com/http://www.cocacola.com/http://www.google.comhttp://www. wikipedia.org CAGR website Beverage news www.economictimes.indiatimes.com.

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Coca-Cola Summer Internship Report Document Transcript

cola.com/http://www.cocacola.com/http://www.google.comhttp://www. wikipedia.org<br />CAGR website<br />Beverage news<br />www.economictimes.indiatimes.com.<br />

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