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SUMMER INTERNSHIP
PROJECT ON COCA-COLA
Submitted to: Som Lalit Institute of
Management Studies
Prepared By: Krunal Chacha
Roll No: 12
PGDM
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 1
PREFACE
This report is prepared by the Post Graduate Diploma in Management (PGDM) student of Som-
Lalit institute of Management Studies. This is the final report produced as a part of a study
undertaken during a summer internship at Hindustan Coca-Cola beverages Pvt. Ltd
In the Post Graduate program we are required to undertake training at the end of the Second
semester for two months and gather important and relevant information about the working of an
organization in the real corporate world.
The training is conducted in order to provide us experience and valuable practical knowledge
about the management of an organization.
This report is prepared on the basis of the learning, experience and the practical exposure that we
have gained in these two months of training period.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 2
ACKNOWLEDGEMENT
I take the opportunity to express my profound gratitude and deep regards to my mentor (Mr.
Satpal Chavla at Hindustan Coca-Cola beverages Pvt. Ltd) for exemplary guidance,
monitoring and constant encouragement throughout the course of the Summer Training
Programme. The blessing, help and guidance given by him time to time shall carry with me a
long way in the journey of life on which I am about to embark.
I wish to express my sincere thanks to Som Lalit Institute of Management Studies- Ahmedabad,
for giving me chance to do this summer training at Hindustan Coca-Cola beverages Pvt. Ltd.
I would like to thank Mr. Anand Trivedi and Mr. Amit Shah and marketing team for
supporting and guiding me throughout my project.
I also take the opportunity to express a deep sense of gratitude to all the market developers for
their cordial support, valuable information and guidance; this helped me in completing the task
through various stages of the training period.
I am obliged to faculty of (Som Lalit Institute of Management Studies), for the valuable
information provided by them in their respective fields. I am grateful for the knowledge provided
by them so that I was able to apply in the practical world i.e. in the organisation.
Last but not least, I would like to thank all those who have helped me directly or indirectly
during the course of this summer internship at Hindustan Coca-Cola beverages Pvt. Ltd
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 3
Executive Summary:
The whole journey from the beginning to completion of my internship under which I made the
project on the most popular company in soft drink industry the Hindustan Coca-Cola
beverages Pvt. Ltd, was a great experience and learning. It taught me how to merge theoretical
and practical fundamentals of Marketing, Distribution, and Sales etc.
I have tried to include detailed description on soft drink industries and introduction of company
along with its history, valuable mission and vision, manufacturing process and Distribution
chains of Hindustan Coca-Cola beverages Pvt. Ltd
I have divided my project into three parts:
1. MIT- Sales and promotion during IPL
2. Sales push for the retailers having Coca-Cola coolers but ordering Coca-Cola
products
3. Ensuring the compliance of the companies set parameters for MD’s
At last I have stated few recommendations which have been observed by me during my
internship and conclusion.
In the end during my internship period I learnt a lot from Coca-Cola as the company provided
me practical knowledge and field exposure that is extremely necessary from the marketing
perceptive
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 4
Table of content:
INTRODUCTION TO SOFT DRINK INDUSTRY 6
HISTORY OF SOFT DRINKS: 7
SOFT DRINK INDUSTRY IN INDIA: 8
KEY FEATURES OF INDIAN BEVERAGE INDUSTRY: 11
COMPANY PROFILE 12
HINDUSTAN COCA COLA BEVERAGES IN INDIA 15
VISION, MISSION AND VALUES OF COCA-COLA 19
MANUFACTURING PROCESS AT HCCBPL 20
BUSINESS PLAN MODEL AT HCCBPL: 22
DISTRIBUTION CHAIN: 23
DISTRIBUTION ROUTES: 24
TYPE OF OUTLET (CHANNEL) 25
PACKAGES OF THE PRODUCT: 27
PRODUCTS OF COCA-COLA: 28
PRICE OF THE CRATE: 34
COKE AND PEPSI: 36
ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN HCCBPL: 37
COCA-COLA & IPL: 38
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 5
RESEARCH OBJECTIVE: 38
FINDING: 46
FIELD WORK FOR GETTING OUR RETAILERS REVIEW: 49
FINDINGS: 49
RED AND GREEN PARAMETERS: 50
RESULTS: 62
FINDINGS AND ANALYSIS: 64
SUGGESTION: 65
CONCLUSION: 66
BIBLIOGRAPHY 67
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 6
Beverage
Non-Alcoholic Beverages Alcoholic Beverages
Non-carbonated Carbonated Fruit Based Grain
Fruit Juices,
Coffee,
Tea,
Packaged
Water
Colas,
Soda,
Tonic Water
Wine,
Brandy
Beer,
Whisky
Introduction to soft drink industry
A beverage is a drink specifically prepared for human consumption. Beverages almost always
largely consist of water. Drinks often consumed include: Water (both flat or carbonated),Juice
based drinks, Soft drinks, Sports and Energy drinks, Alcoholic beverages like beer or spirits
,Coffee, tea ,Dairy products like milk. Commonly, drinks are filled into containers, like glass or
plastic bottles, steel or aluminum cans as well as cardboard supported packages, like the "Tetra
Pack" or others. Filling of beverages can be done cold, hot, ambient and cold-aseptic filling to
mention the latest trend of beverage marketing and technology.
The beverage is mainly categorized into two major categories based upon the alcoholic and
nonalcoholic nature of the drink. Non-Alcoholic beverages are further o two types based upon
carbon content. These beverages contain Fruit juices, Coffee, Tea, Soda, Colas. The Alcoholic
beverages are based upon the fruit content and grain. It may be Wine, Brandy, Whisky or Beer.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 7
History of soft drinks:
1798-The term "soda water" first coined.
1810-First U.S. patent issued for the manufacture of imitation mineral waters.
1819-The "soda fountain" patented by Samuel Fahnestock.
1835-The first bottled soda water in the U.S.
1850-A manual hand & foot operated filling & corking device, first used for bottling soda water.
1851-Ginger ale created in Ireland.
1861-The term "pop" first coined.
1874-The first ice-cream soda sold.
1876-Root beer mass produced for public sale.
1881-The first cola-flavored beverage introduced.
1885-Charles Aderton invented "Dr Pepper" in Waco, Texas.
1886-Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.
1892-William Painter invented the crown bottle cap.
1898 -"Pepsi-Cola" is invented by Caleb Bradham.
1899-The first patent issued for a glass blowing machine, used to produce glass bottles.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 8
Soft drink industry in India:
India has a population of more than 1.150 Billion which is just behind China. According to the
estimates, by 2030 India population will be around 1.450 Billion and will surpass China to
become the World largest in terms of population. Beverage Industry which is directly related to
the population is expected to maintain a robust growth rate. The price stability throughout the
year has contributed to the increase in domestic liquor sales.
The Indian beverage market offers hot options. According to Dabur, the fruit beverages industry
in India now stands at Rs. 1100 crores (approx. Euro 180 million) and the market has grown at
the rate of 30% where Dabur India, through the new launch Real Burst, is looking at establishing
a market share of 4-5% in next 2-3 years.
Part of the industry of fast moving consumer goods is also the beverage industry. The total
beverage industry in India is being estimated to grow at 17% this year, according to experts.
"Food and beverages segment has not suffered despite the slowdown in the economy. FMCG in
our stores has done very well. In fact, we registered 10-15% growth in this segment last year,"
said a spokesperson at Spencer's Retail Ltd.
Beverage majors like Coca Cola India, for example, again reported growing sales. Coca-Cola in
India reported a solid first quarter 2009 results not only despite a challenging economic
environment, but also with unit case volume increasing by 31%. And eight quarters out of the 11
quarters had a double-digit growth.
To foreign observers of the market, these figures might sound unbelievable, as Western markets
are saturated and have not seen such figures for long time. But in India, various positive factors
drive the beverage markets. One is the rising number of people in the middle class with extra
money to spend on new beverages like wine, new brands of imported whiskey, or the fancy
energy drinks, some of which are really good to enable people to work
longer, to listen longer during conferences, and even to party longer and have fun. Leader in this
segment is Red Bull, but some other good and very effective drinks, one even very healthy are
already or soon entering the market.
Another factor is the sheer size of the number of people in India. Even the rural households, as
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 9
long as the monsoon is good, get purchasing power and can participate in consumer markets.
Where ever the purchasing power is still not big enough, companies offer smaller packs for Rs.
10 or Rs. 5, especially to be seen in the snack market. Hot summers in India also help a bit to sell
beverages.
The large untapped market potential for store-bought non-alcoholic beverages, in particular
carbonated beverages, juice based drinks and energy or sports drinks among urban/suburban
consumers in India. Approximately 120 billion litres of beverages are consumed by Indians
every year, but only 5% represent store-bought packaged beverages. The majority of Indian
consumers (75%) still consume non-alcoholic store-bought beverages ‘less than once a day’,
highlighting a large untapped market opportunity, particularly in the carbonated drinks and juice
or juice-based categories (estimated to be worth $1.5 Billion and $.25 billion respectively). In
order to increase consumption and penetration of such beverages manufacturers will have to
address the two primary reasons why some Indians abstain entirely, that is, health concerns and
undesirable taste.
The study investigates consumption frequency and habits, the importance of various product
attributes, and brand preferences across age, household income, city in India and beverage
category. This study has implications for manufacturers, distributors, retailers and investors
hoping to capitalize on the growth of these beverage categories in India and distinguish
themselves in the increasingly crowded marketplace.
India is a booming market for the beverage industry as well. It already accounts for about ten per
cent of global beverage consumption today. This means that the country has the third-largest
beverage consumption after the USA and China. But that is not the end of the road. Market
analyses indicate that beverage sales in India will be increasing by more than 60 per cent
between 2008 and 2012. Since India is (still) a country of tea and coffee drinkers, packaged cold
drinks have enormous potential. Packaged water, beer, spirits and carbonated drinks are
recording what rates are in some cases high double-digit growth. All in all, annual per capita
consumption of packaged beverages is supposed to triple from 2.6 litres in 2000 to 8.7 litres in
2012.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 10
Demand for milk and milk-based beverages are also rising. India is the world’s biggest producer
and consumer of milk, since milk plays a major role in the Indian diet. The consumption of milk
and milk-based beverages has increased by an annual average of 2.7 per cent in the last four
years and most of them (65 per cent) are sold “loose” / unpackaged.
The proportion of the market accounted for by packaged milk and dairy products are increasing,
however. In the past four years, for example, demand for milk filled in pouches has grown by 4.5
per cent annually, while the figure for milk in cartons is about 25 per cent. The rising
consumption is making it necessary for appropriate investments to be made by the beverage
industry.
The sector is highly fragmented and 95 per cent of these producers have small or very small
operations. Of this, the health beverage industry is valued at $230 million.
The Indian beverage industry faces over supply in segments like coffee and tea. However, more
than half of this is available in unpacked or loose form. Indian hot beverage market is a tea
dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust
tea is popular in southern India, while loose tea in preferred in western India. The urban-rural
split of the tea market was 51:49 in 2000. Coffee is consumed largely in the southern states. The
size of the total packaged coffee market is 19,600 tonnes or $87 million.
The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a
year or $1 billion. The market is highly seasonal in nature with consumption varying from 25
million crates per month during peak season to 15 million during offseason. The market is
predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi
dominate the Indian soft drinks market. Mineral water market in India is a 65 million crates ($50
million) industry. On an average, the monthly consumption is estimated at 4.9 million crates,
which increases to 5.2 million during peak season.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 11
Key Features of Indian Beverage Industry:
 Indian Beverage Market CAGR 21%
 India ranked 3rd in largest beverage consumption after the USA and China
 Total Indian Beverage Consumption every year:120 billion liters
 Fruit Beverages Market size: Rs 1100 crores (approx. Euro 180 million)
 Fruit Beverage market growth rate: 30%
 Majority of Indian consumers:75% consume Non-alcoholic beverages and 25% Alcoholic
Beverages
 Carbonated Drinks Market size: $1.5 Billion
 Juice or juice-based Drinks Market size: $.25 billion
 Health beverage industry is valued at $230 million
 Indian Beer Market Growth Rate: 7 - 8 %
 Milk-based beverages consumption has increased by an annual average of 2.7 per cent in the
last four years
 Total packaged coffee market size: 19,600 tonnes or $87 million.
 The Indian soft drink market is worth Rs. 21,600 million a year with a growth of around 7%.
 The total soft drink (carbonated beverages and juices) market is estimated at 284 million
crates a year or $1 billion.
 Peak season soft drink consumption : 25 million
 Off-season soft drink consumption: 15 million
 The market is predominantly urban with 25 per cent contribution from rural areas.
 Coca cola and Pepsi dominate the Indian soft drinks market.
 Indian Mineral water market size: 50 million industry.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 12
Company Profile
History of Coca-Cola:
JOHN PEMBERTON
The world has changed in many ways since pharmacist; John Stith Pemberton first
introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the product
mean so many things to hundreds of Millions of consumers around the globe. Coca-Cola
products are served more than 705 million times every day, quenching the thirsts of consumers in
more than 195 countries in every climate. That's a long way to come after such a modest
beginning.
May1886 - Pemberton concocted caramel-colored syrup in a three-legged brass kettle in
his backyard. He first "distributed" the new product by carrying Coca-Cola in a jug down the
street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the
soda fountain. Whether by design or accident,
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 13
Carbonated water was teamed with the new syrup, producing a drink that was proclaimed
"Delicious and Refreshing." Dr. Pemberton's partner and bookkeeper, Frank M. Robinson,
suggested the name and penned, in the unique flowing script that is famous worldwide today.
1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25
gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated
with the No. 1 soft drink brand ever since.
1891 - Atlanta entrepreneur Mr. Candler had acquired complete ownership of the Coca-Cola
business for $2,300. Pemberton was forced to sell because he was in a state of poor health and
was in debt. Within four years, Candler's merchandising flair helped expand consumption of
Coca-Cola to every state and territory.
1917 - 3 Million Coke's sold per day. "COCA-COLA" is the world’s most recognized trademark.
1919 - The Coca-Cola Company was sold a group of investors for $25 million.
1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff for 25
million dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president for six
decades. Woodruff's leadership took the business to unrivaled heights of commercial success,
making Coca-Cola an institution the world over.
During the Woodruff era, Mr. Woodruff made a promise to the armed forces of the
United States to supply Coca-Cola to every serviceperson. He said that costs and location did not
matter; he supplied 5 billion bottles to the service.
1927 - The first Coca-Cola radio advertisement.
1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time.
1943 On June 29, an urgent cablegram arrived from General Dwight Eisenhower's Allied
Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve American service
men overseas. Eventually, 64 plants were set up during WWII.
1950 - Advertising on the television began. Currently Coca-Cola is advertised on over five
hundred TV channels around the world.
1961 - Sprite was introduced.
1971 - The song "I'd like to buy the World a Coke" was released.
1978 - The two liter bottle was introduced, and during that same year the company also
introduced plastic bottles
1982 - Diet Coke was introduced in July.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 14
1985 - The Coca-Cola Company made what has been known as one of the biggest marketing
blunder. They stumbled into a new formula in efforts to produce diet Coke. They put forth 4
million dollars of research to come up with the new formula.
The new formula was a sweeter variation with less tang, it was also slightly smoother.
The factor that influenced the change was that Coke's market share fell 2.5 percent in four years.
Each percentage point lost or gain meant 200 million dollars. This was the first flavor change
since the existence of the Coca-Cola Company. The change was announced April 23, 1985 at the
Vivian Beaumont Theater at the Lincoln Center. Some two hundred TV and newspaper reporters
attended this very glitzy announcement. The change to the world's bestselling soft drink was
heard by 81 percent of the United States population within twenty-four hours of the
announcement. Within a week of the change, one thousand calls a day were flooding the
company's eight hundred number.
Most of the callers were shocked and/or outraged, many said that they were considering
switching to Pepsi. Within six weeks, the eight hundred number was being jammed by Six
thousand calls a day. The company also fielded over forty thousand letters, which were all
answered and each person got a coupon for the new Coke. Many American consumers of Coca-
Cola asked if they would have the final say. When Pepsi heard that the Coca-Cola Company was
changing its secret formula they said that it was a decision that Pepsi tastes better. Roger Enrico,
the president and CEO of Pepsi-Cola wrote a letter to every major newspaper in the U.S. to
declare the victory. Coca-Cola management had to decide: Do nothing or "buy the world a new
Coke". They decided to develop the new formula.
1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke was brought
back in addition to the new one. This was greatly due to dropping market share and consumer
protest. The market share fell from a high of 15 percent to allow of 1.4 percent. This was said to
be a classic marketing retreat. Coca-Cola executives admitted that they had goofed by taking the
old Coke off the market.
The Coca-Cola Company’s eight hundred number received eighteen thousand Calls of
gratitude. The comeback of old Coke drove stock prices to the highest Level in twelve years.
This was said to be the only way to regain the lead on the Cola wars.
1993 - Coca-Cola exceeds 10 Billion cases sold worldwide.
1996 - The Summer Olympics was held in Atlanta, Georgia, the home of Coca-Cola.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 15
Hindustan Coca Cola beverages in India
Coca-Cola was the leading soft drink brand in India until 1977, when it left the country rather
than revealing its formula to the Government and reduces its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in India.
The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca Cola India
Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy
to foreign investments in 1991.
In India, the Coca-Cola system comprises of two different companies, a wholly owned
subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and
sells concentrate and beverage bases and powdered beverage mixes, and a Company-owned
bottling entity, named, Hindustan Coca-Cola Beverages Pvt Ltd. (As shown in following chart)
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 16
Coca-Cola India Pvt. Ltd. is a Wholly-Owned Subsidiary of The Coca-Cola Company, USA.
While building the consumer franchise for The Coca-Cola Company trademarks, it also leads
world class governance systems for the operations of all partners in bottling, suppliers,
distributors and other stakeholders.
Hindustan Coca-Cola BeveragesPvt. Ltd. –
As part of the Bottling Investments Group of The Coca-Cola Company, HCCBPL has 24
bottling plants at strategic locations in various states spread across India. We cover
approximately 65% of bottling operations for the Coca-Cola System in India.
 HCCBPL has an extensive distribution system spanning more than a million outlets
operating with world class execution standards. The focus of the system is to develop
strong customer value while delivering preferred choice of refreshment at an arm's length
of desire to the consumer.
Over the years, Hindustan Coca-Cola Beverages Pvt. Ltd. has focused on building world class
operations based on principles of safety, profitability and solid governance to claim sustained
growth. As part of our journey of moving towards being a World Class Company, we have
strengthened our organization in terms of Supply Chain, Infrastructure, Market Execution,
People, Processes, Compliance, Governance and Route-to-Market. This approach has enabled us
to build our portfolio through launching new packs and brands, coupled with a competitive
pricing strategy based on a balance of value pricing and eliminating waste.
Its operations have grown rapidly through a model that supports bottling operations, both
company owned as well as locally owned and includes over 7,000 Indian distributors and more
than 2.2 million retailers. Today, our brands are the leading brands in most beverage segments.
The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry
into India. The company will be investing another USD 5 Billion till the year 2020. The Coca-
Cola system in India directly employs over 25,000 people including those on contract. The
system has created indirect employment for more than 1, 50,000 people in related industries
through its vast procurement, supply and distribution system. We strive to ensure that our work
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 17
environment is safe and inclusive and that there are plentiful opportunities for our people in India
and across the world.
The beverage industry is a major driver of economic growth. A National Council of Applied
Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this
industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage
is increased, the direct and indirect effect on the economy will be twice of that. In terms of
employment, the NCAER study notes that "an extra production of 1000 cases generates an extra
employment of 410 man days."
As a Company, our products are an integral part of the micro economy particularly in small
towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is
amongst the largest domestic buyers of certain agricultural products.
As an industry which has strong backward and forward linkages, our operations catalysis growth
in demand for products like glass, plastic, refrigeration, transportation, and Industrial and
agricultural products. Our operations also lead to incremental growth for enterprises engaged in
post-production activities like merchandising, marketing and sales. In addition, we share best
practices and technological advancements with our suppliers, vendors and allied industries which
often lead to improvement in the overall standards of quality across industries.
The Coca-Cola Company has always placed high value on good citizenship. Our basic
proposition entails that our Company's business should refresh the market; enrich the workplace;
protect and preserve the environment; and strengthen the community. We leverage our unique
strengths to actively support and respond to local needs -- be it the need for education, health,
water or nutrition. We have used our distribution network for disaster relief, our marketing
prowess to raise awareness on issues such as PET recycling, and our presence in communities to
improve access to education and potable water. The Coca-Cola India Foundation is now taking
forward in the community at large, projects and programs of social relevance to carry forward
the message of inclusive growth and development.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 18
HCCBPL has an extensive distribution system spanning more than a million outlets operating
with world class execution standards. The focus of the system is to develop strong customer
value while delivering preferred choice of refreshment at an arm's length of desire to the
consumer. In the network of the Coca-Cola system, Coca-Cola has either of the two bottling
operation done for the company.
1. COBO – Company Owned Bottling Operations.
The company’s owned bottling plants are the 100% subsidiary of HCCBPL, it holds all the
rights to manufacture the products as well as to bottle the manufactured products.
After 1993, when Coca-Cola re-entered the Indian market, it did a lot of changes in existing
system of soft drink market prevailing in India, by acquiring the major brands and the
bottling operations from Parle. Coca-Cola & PepsiCo launched in India at the same time so
when Coca-Cola bought the leading beverages products of Parle, the Parle’s properties were
took over by PepsiCo. After that the Coca-Cola Company founded some of its own bottling
operation in India. In year 1997, company did a major investment of $700 million in India by
purchasing other bottling operations, all around India and introduces new technology in
them. These bottling plants are called Company Owned Bottling Operations. Company has
full ownership and operational right for these types of operations.
2. FOBO – Franchise Owned Bottling Operations. Franchise Owned Bottling Operations are
the other type of bottling operation for the company to these; the company has given the
right to produce the product for the company and to supply with the territory assigned by the
company. Company has no ownership or operational right / control over these.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 19
Vision, Mission and Values of Coca-Cola
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 20
Manufacturing process at HCCBPL
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 21
The manufacturing of the products of Coca-Cola involves the following steps:
• Water is received from the River Cauvery and it passes through the water treatment plant,
further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed
water.
•In the syrup room, the concentrate received from another bottling plant situated at Pune, is
blended with the sugar syrup
•Once both the water and the final syrup are ready, they are both mixed together and sent to the
carbonator section where Carbon Dioxide is added to the mixture to form the final product.
• On the other hand, simultaneously, the returnable glass bottles are DE palletized, inspected and
washed for the purpose of filling in the final product in it. This step does not take place in the
PET bottle line as the bottles once used are disposed.
• The product is finally filled in the bottles, crowned (in case of RGB)/capped (in case of PET
bottles), labeled and cased in order to be sent into the warehouse for distribution.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 22
Business plan model at HCCBPL:
Coca-Cola India
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 23
Distribution chain:
HCCBPL has a wide and well managed network of salesmen appointed for taking up the
responsibility of distribution of products to diverse parts of the cities. The distribution channels
are constructed in such a way that the demand of customers is fulfilled at the right place and the
right time when it is needed by them. A typical distribution chain at HCCBPL 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
PRODUCTION PLANT WAREHOUSE DEPOT WAREHOUSE
DISTRIBUTION WAREHOUSE RETAIL STOCK RETAIL SHELF CONSUMER
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 24
DISTRIBUTION ROUTES:
The various routes formulated by HCCBPL 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.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 25
Type of Outlet (Channel)
A. Grocery – Store stocking a variety of regular use household items. The channel
provides an opportunity for penetration as it propels home consumption.
It includes all the kiriana stores, departmental stores, supermarkets, provision stores etc.
B. Convenience – These offer pan bidi and the stock includes cigarettes ,mint,
confectionary and CSD .it also covers STD and ISD phone booths as well .customers
generally drop by All day long hours for a break .this is extremely useful in driving
impulse purchase.
C. Eating & Drinking – Eating and drinking ranges from high end restaurants to small
dhabas .these outlets offer multiple opportunities to enhance sales as people usually
order something to drink along with food.
There are 2 types of E&D: E&D1 AND E&D2
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 26
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 27
Packages of the product:
The Coca-Cola products are available to its customer in different sizes and packs depending on
the beverage. Basically the company manufactures the product and bottles it in 5 different kinds
of packs.
1. RGB – Returnable / Refillable Glass Bottles.
2. PET – Plastic Bottles
3. CAN – Aluminum Cans (Tins)
4. Tetra – Tetra Packs
5. BIB – Beverages in Bag
RGB – These bottles are the glass bottles which are available in the size of 200ml & 300 ml.
The consumer can buy these bottles from the retailer but once the beverage is consumed by the
consumer the bottle is to be returned to the retailer and the amount paid to the retailer is only for
the beverage. The retailer will later on return the bottle to the manufacturer and the bottle will be
reused after certain cleaning procedures.
PET – These are the plastic bottles made from Polyethylene terephthalate. The plastic bottles
are much liked by the consumers as they don’t have to return the bottle to the retailer. The
consumer can buy the bottles from the retailer and drink it at any preferred time. The PET
bottles are available in the sizes of 400ml, 600ml, 750ml, 1ltr, 1.2ltr, 1.25 ltr, 2.25 ltr.
CAN – These are the aluminum cans which can be easily seen in the market. The costs of these
cans are higher than the normal PET and RG bottles.
TETRA – These are the special packs used for the juices only. The CSD are not available in
these packs.
BIB – These are the bags which are not available to the consumers, these bags are used for the
fountain machines at the mall, theaters, etc. It contains the beverages only without the CO2. The
carbon dioxide is later added when it is being served to the customer in glass.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 28
Products of Coca-Cola:
Cola Section:
 COCA COLA
In India, Coca-Cola was the leading soft-drink till 1977 when the
government policies necessitated its departure. Coca-Cola made its
return to the country in 1993 and made significant investments to ensure
that the beverage is available to more and more people, even in the
remote and inaccessible parts of the nation.
Packs 200 ml 300ml 400ml 600ml 750ml 1.75ml 2.25ml
Price 10 16 20 34 35 55 80
 DIET COKE
Launched in 1982 in America, Diet Coke (also known as Coca-Cola
light in some countries) has become the world's third largest soft
drink.
Packs 500ml
Price 30
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 29
 THUMS UP
It 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.This brand known for its strong,
fizzy taste and its confident, mature and uniquely masculine
attitude. This brand clearly seeks to separate the men from the
boys.
Packs 200 ml 300ml 400ml 600ml 750ml 1.25ml 2.25ml
Price 10 16 25 34 35 55 80
Orange Section:
 FANTA
Internationally Fanta - The orange drink of The Coca-Cola Company
is seen as one of the favorite drinks since 1940's. Fanta entered the
Indian market in the year 1993.Over the Years Fanta has occupied a
strong market place and is identified as "The Fun Catalyst”.
Perceived as a fun youth brand, Fanta stands for its vibrant color;
tempting taste and tingling bubbles taste that not just uplifts feelings
but also helps free spirit thus encouraging one to indulge in the
moment. This positive imagery is associated with happy, cheerful
and special times with friends.
Packs 200 ml 300ml 400ml 600ml 750ml 1.25ml 2.25ml
Price 10 16 25 34 35 55 80
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 30
Lemon section:
SPRITE
Sprite is global leader in the lemon line category, is the largest
sparkling beverage brand in India. Since its inception is 1999, Sprite
has not only established itself as a brand which successfully boasts it's
'cut-thru' perspective with an authentic, edgy, irreverent, urban and
straight forward style, but has also achieved status of an undisputed
youth 'badge' brand. Today Sprite is one of the top two sparkling soft
drinks in the country.
Packs 200 ml 300ml 400ml 600ml 750ml 1.25ml 2.25ml
Price 10 16 20 34 35 55 80
LIMCA
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’’.
Lime „n‟ Lemoni” Limca, Derived from “nimbu” + “jaisa”.. Hence
“lime sa”. Limca has been lived up to its promise refreshment and
has been the original thirst choice of millions of consumers for over
3 decades. Born in 1971 has remained unchallenged as the
No.1Sparkling Drink in the cloudy lemon segment.
Packs 200 ml 300ml 600ml 750ml 1.25ml 2.25ml
Price 10 16 34 35 55 80
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 31
Juice section:
 MAAZA
Mango. It is a fruit associated with good times like no other. It’s
called the king o fruits.
Introduced in 1970s, Maaza has today come to symbolize the very
spirit of mangoes. Universally loved for its taste, color, thickness
and wholesome properties, Maaza is the mango lover's first choice.
Packs 200 ml 250ml 600ml 750ml 1.2ml
Price 10 15 37 38 55
Minute Maid:
 PULPY ORANGE
Minute Maid – one of the world's largest juice and juice drink brands.
The history of the Minute Maid brand goes as far back as 1945 when
the Florida Food Cooperation developed orange juice powder. They
branded it Minute Maid, a name connoting the convenience and the
ease of preparation (in a minute).
 NIMBU FRESH:
Launched first in South of India in January 2010, Minute Maid
Nimbu Fresh, started refreshing the whole of India by April 2010.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 32
 MIX FRUIT:
Launched in the East in 2010 and scaled up in 2011 across the
country.
 APPLE:
Launched in the East in 2010 and scaled up in 2011 across the country.
 MANGO:
Launched in 2012 across India.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 33
 KINLEY:
Kinley water comes with the assurance of safety from The Coca-Cola Company.
That is why we introduced Kinley with reverse –osmosis along with the latest
technology to ensure purity of our product. Because we believe that right to
pure, safe drinking water is fundamental.
Packs 500ml 750ml 1 Ltr
Price 10 10 20
 KINLEY SODA:
Launched in 2002 Kinley soda today is no.1 national Soda brand.
Packs 300ml 600ml 750ml
Price 10 15 18
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 34
Price of the Crate:
PACKS Brands BOTTLES MRP MRP
COST
PRICE
200 ml All Brands 24 10 240 209
300 ml Coke, Fanta, sprite,
Limca, Thumps up
24 16 384
320
400ml Coke, Fanta 24 20 480 437
400ml Thumps up, Fanta 24 25 600 546
500ml Coke Diet 24 30 720 600
600ml Coke, Fanta, sprite,
Limca, Thumps up
24 34 816
710
750ml Coke, Fanta, sprite,
Limca, Thumps up
24 35 840
764
1.25ml Fanta, sprite,
Limca, Thumps up
12 55 660
600
1.75ml Coke 12 55 660 600
2.25ml Coke, Fanta, sprite,
Limca, Thumps up
9 80 720
655
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 35
Juice Section:
MAAZA:
Packs BOTTLES MRP MRP COST PRICE
200 ml 24 10 240 209
250ml 24 15 360 313
600ml 24 37 888 773
750ml 24 38 912 830
1.2 ltr 12 62 744 677
KINLEY SODA:
Packs BOTTLES MRP MRP COST PRICE
300ml 24 10 240 209
600ml 24 15 360 314
750ml 24 18 432 312
KINLEY:
Packs BOTTLES MRP MRP COST PRICE
500ml 24 10 240 144
750ml 24 10 240 204
1 ltr 15 20 300 170
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 36
COKE AND PEPSI:
Coke Pepsi
Cola Cola
(Pepsi)
Coca Cola Thums up
Orange Orange
(Fanta) (Mirinda)
Clear lemon Clear Lemon
(Sprite) (7UP)
Cloudy lemon Cloudy Lemon
(Limca) (Lemon Mirinda)
Juice Juice
(Maaza) (Slice)
Soda Soda
(Kinley) (Lehar Evervess)
Water Water
(Kinley) Aquafina
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 37
Organization structure of the sales department in HCCBPL:
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 38
Coca-Cola & IPL:
Indian Premier League (IPL) is a Twenty20
cricket tournament where different franchise
teams participate for the title. IPL is one of the
most-watched Twenty20 cricket league in the
world and also known for its commercial success.
Ahmedabad one of the venues for IPL and it had
Four matches.
Coca-Cola found out that they had great opportunity to promote and establish the brand image of
Coke in minds of consumers during the IPL.
Research objective:
Establishing Brand Image Of coke during IPL at Motera Stadium
Methodology:
 Before IPL:
 Coca-Cola Company found an opportunity to promote its brand Coke at the street of
Motera
 Street had total 36 shops which included Pan Shops, convenience shop, STD Booths,
grocery etc. out of which 6 outlets had already tie up with Coca-Cola and 5 outlets with
Pepsi.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 39
Picture Showing Outlets on the Street of Motera Stadium
 Coca-Cola Company decided to crack the remaining Shops i.e. to convince the retail
shops to sale coke during IPL
 Company’s employees and interns
where divided into teams and were able
to Crack 25 Outlets in total out of 36
into Coca-Cola
 Depots: Central stock keeping system
which was located at an optimum
distance from all the outlets.
Visat
3 Outlets
8 Outlets
Motera Stadium
Motera Road- 12
Outlets
3 Outlets
5 Outlets
From Gandhinagar- 5 Outlets
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 40
 To crack the retail shops we gave various offers to them like providing them cash
discounts, giving stock at low cost etc.
 Hoardings:-
 Interception points were decided on the basis of
1) Were maximum numbers of Car use to pass
2) At queues
3) Traffic signals
4) Crowded places
 Retail shops owners were allowed to sell each and every products of Coca-Cola but
Company decided to sale only its Premium Brand i.e. ‘‘COKE’’ and that to PET bottles
of 400ml of Coke, Coke diet Cans, Coke diet PET bottles of 500ml and Kinley water at
company own shops
Reason behind it:
 Coca-Cola’s branding and promotion
 Customers can easily carry the bottles and Can
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 41
 During IPL-match:
 Company’s employees and interns were divided into teams according to
Interception points
 Stock, drums and ice were delivered at Interception points before 4 hours of IPL
match so that each and every points has chilled coke
 To reinforce brand image, inculcate uniformity among employees and to attach a
trust factor on the customers, interns and employees promoting brand were given
coke t-shirts.
 The pictures below show how sold Coca-Cola on the street of motera stadium
with a slogan ‘‘COKE AT 20 ONLY’’
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 42
 Optimizing Sales: Coke deployed a strategy to sell the product before IPL (so that people
get refreshment on the stadium) and after the match because Pepsi as a sales counter was
absent at the time of post-match, hence sales could be maximized.
 After IPL match:
 Sales Monitoring: One person was assigned a particular outlet to monitor sales
and report to the company.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 43
 Changes after IPL Match-1:
 Following changes were done from the learnings of the 1st IPL Match:
1. Hoardings and marketing activities were increased
New Marketing activities
2. Manpower management: We monitored sales in a particular area to
understand the manpower requirement at specific outlets and during peak
hours. Manpower was moved from a low selling outlet to high selling
outlet during peak hours to optimize the human resource utilization.
3. Monitoring the inventory: As the product sales was more than that of the
intake, we suggested to increase the drums from 54 from 33 based on sales
figures. Also, Kinley was a strong product pull post IPL match hence,
based on the sales count, drums were doubled.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 44
Totalsales during IPL matches:
Pack Company’s own
outlets
Retail Outlets Total
400ml Coke 472 235 707
Diet Coke Can 10 0 10
500ml Coke Diet 3 0 3
750 ml 0 29 29
500 ml Kinley water 78 25 103
750ml Kinley water 0 15 15
1 ltr Kinley water 69 223 292
200 ml 118 118
1.25 ltr 10 10
Total 632 655 1287
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 45
 Competitor’s Activities:
 Competitor’s focused pack for first two matches were 200ml RGB
 In 3rd match they shifted to CAN & 500 ml Water
 They were able to sell total of 300 cases volume during all IPL
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 46
FINDING:
 Why this Brand..?
o Coca-Cola:
 Coca-Cola’s Premium Brand is Coke and company always want to increase the market
share of Coke so company had only focused on its premium brand during IPL matches
o Pepsi:
 Pepsi tried and focused on each and every brand which was a failure
 Why this Pack..?
o Coca-Cola
 Company decided to sale only its Premium Brand i.e. ‘‘COKE’’ and that to PET bottles
of 400ml of Coke, Coke diet Cans, Coke diet PET bottles of 500ml
 Total sales – 1287 cases
o Pepsi:
 Pepsi’s focused pack for first two matches were 200ml RGB(Returnable / Refillable
Glass Bottles)
 In 3rd match they shifted to CAN & 500 ml Water
 Total sales- 300 cases
 Brand image of Coke
Interns were given the task to see the sales during all IPL matches and through that I found
out that Brand Image of Coke was high in the minds of people as people preferred more of
Coke than Pepsi
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 47
 Preparation
 Planning on the previous day
 We use to check the stock availability of retailers and take orders so that stock is
sufficient for the next day that is for IPL match
 Delivering products from depot to respective outlets
 Stock was stored at depot and from depot it was delivered to retail Outlets
 Ensuring accounting of product sold and realization of money
 At the end of the IPL match total stock sold was calculated against total revenue being
generated during match
 Steps for Improving efficiency
 Ensuring that malpractices (Black marketing) are not prevalent which can act as deterrent
to brand image and loss of revenues
 Counter strategies to Pepsi - dynamic strategies on a day to day ; hour to hour basis
 Human Resource Management
 We monitored sales in a particular area to understand the manpower requirement at
specific outlets and during peak hours. Manpower was moved from a low selling outlet to
high selling outlet during peak hours to optimize the human resource utilization
 Proper marketing activities
 Hoardings
 Mainly hoardings were done at the entrance of the gate of Motera stadium so that it can
be seen by maximum number of people
 Uniforms of employees and interns
 To reinforce brand image, inculcate uniformity among employees and to attach a trust
factor on the customers, interns and employees promoting brand were given coke t-shirts
 Professional Selling
 All educated and marketing people selling coke in the field
 Making the surroundings happening, thereby associating with the brand image
of coke as to ‘Open Happiness’
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 48
 Stalls were all red color with tag line ‘‘Open Happiness’’ and in order to support our
message of Opening Happiness we hired drummers who played music and created lively
atmosphere
 Response of People:
 Response of people was very high, encouraging and also sales of Coca-Cola was very
good
 Reasonfor more sale:
 Coca-Cola’s Interception points were far more ahead then the competitor
 Coca-Cola only sell Coke which was at Rs. 20 Only and competitor was selling its each
and every Brand
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 49
Field Work for getting our retailers review:
ResearchObjective
To crack the retail outlets of Ahmedabad areas where they have Coca cola coolers but don’t
purchase Coca Cola products.
Methodology
The company gave the list of 40 retail outlets which were to be cracked from following areas:
Areas Total No. of shops visited
Juhapura 10
Anandnagar 2
Changodar 3
Vejalpur 8
Sarkhej 4
Prahladnagar 5
Jodhpur 1
Ramdevnagar 2
Santipura 1
Satellite 3
S.G Highway 1
Findings:
1) Retailers were not satisfied with the services that are provided by market developers
2) Retailers were not satisfied with the discount offers provided to them as competitors
provides more discount offers
3) Delivery of stock was irregular from depot
4) Company’s Schemes were also not provided to retailers by Market developer
5) Stock ordered by retailers and stock delivered to them use to be different
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 50
RED AND GREEN PARAMETERS:
 Research Objective:
To ensure the compliance of the company set parameters (Red and green) for MD are
fulfilled upon.
o Geographic segmentationof Ahmedabad:
Ahmedabad Geographic segmentation is divided into 2 parts i.e. East Ahmedabad and West
Ahmedabad
 I worked under ASM(Area sales manager) of east Ahmedabad which has total 8 depo’s
under him
 STL/SE/MDE(/Sales executive/Market developer executive) are in charge of the Depo’s
under which MD’s (Market Developer) work
 Red and Green are support to sale system and these system helps to increase the volume
of the Coca-Cola Company
 GSM, ASM, STL/SE/MDE and MD’S each and every one are graded under green and
Red parameters
Ahmedabad-GSM
Ahmedabad East-
ASM
AhmedabadWest-
ASM
8 Depo’s-
STL/SE/MDE
31 MD’S
2 Depo & 1 DSD
STL/SE/MDE
25 MD’S
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 51
 GSM Green and Red Scores Depends on the scores of East and West ASM Scores, ASM
Red and green scores Depends Upon Depo’s Under him, STL/SE/MDE Green and Red
Scores Depends upon Scores of MD’s Green and Red score
 Reinforce execution
standards
 Enhance execution
capability
 Have a greater impact
on business
 Increase action
orientation
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 52
RIGHT EXECUTION DAILY
As part of the Bottling Investments Group of The Coca-Cola Company, Hindustan
Coca-Cola Beverages Pvt. Ltd. (HCCBPL) works actively with approximately 3800
distributors across the country to place beverage products across 1.4 Million retail
outlets to provide refreshment to 25 Million consumers every day. With around 130
SKUs in the portfolio, a strong frontline sales team maintains the discipline of making
the products available at an arm’s reach by maintaining world class in outlet execution
and conforming to exacting standards.
RED (Right Execution Daily) provides a ready reckoner in the form of ‘Picture of
Success’ to the ‘Feet on Street’ to ensure consistency and high standards of execution in
around 450,000 RED outlets across the country.
RED helps drive creation of a soft drink culture
ensuring easy availability to the consumers
across rural and urban clusters. Extensive
support is provided by HCCBPL to help build
the business of a customer as he moves up the
‘Pyramid’ from Basic Product Availability to
Chilled Availability evolving into Activated
Chilled Availability. HCCBPL creates strong customer value by evolving customers
from provider of basic product to delivering an experience to the consumer.
RED is much more than being the World’s largest Retail track
It involves defining the Picture of Success, Actual Execution, Building Capability of the frontline,
improve associate engagement and a process of Continuous improvement
R.E.D is the survey method that company started earlier. For the survey of R.E.D., Company had
hired the person from A.C. NIELSON one of the best survey company. This survey gets done once in a
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 53
month. R.E.D is the set of norms divided into outlet wise.
RED IS DIVIDED INTO 4 PARTS:
1) Cooler Standards (20 Points)
2) Availability Standards(70 points)
3) Activation Standards(10 points)
4) Bonus Points(10 points)
I. Cooler standards:
Cooler standards has 20 points which are divided as follows:
1. Prime position:
Coolers should be kept at such a place that when customer enters a shop cooler is easily visible
to them.
2. Brand Order (COLT-J):
Cooler should always be in this format that is
C- Coca-Cola
O- Orange (i.e. Fanta)
L – Limca
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 54
T – thumps Up
J – Juice (i.e. Maaza)
So Coca-Cola should be first in cooler followed by Fanta, Limca, Thums up and then Maaza.
A format COLT-J is being shown in above picture.
3. PACK ORDER (2 self IC Pack):
IC packs includes RGB, Cans, Tetra
packs and 400ml.
 RGB- Returnable / Refillable
Glass Bottles
 Aluminum Cans (Tins)
 Tetra – Tetra Packs
In Pack Order first two self should always
be filled with IC Pack which is clearly
seen in the above picture.
4. SOVI IN OUTLET: (10 points)
SOVI – Share of visible inventory
SOVI is divided into two parts:
1) Stock pressure
2) Shelf-purity
 Stock pressure: If retailer have 7 caser cooler than he should have total stock of
minimum 7 caser both including warm and cold stock.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 55
 Shelf-Purity: Coca-Cola provides cooler to retail outlets but company ensures that
cooler should only have stock of Coca-Cola into the coolers.
If retailer fulfill the stock pressure criteria then company checks shelf purity.
Example: A retail outlet has 20 caser cooler of Coca-Cola then a retail should have minimum 20
caser stock including both warm and cold stock so the outlet is eligible for SOVI 10 points. After
stock pressure company checks shelf-Purity and 20 caser cooler have 5 self so if all the shelf are
pure then they would get 10 points, if 4 shelf’s are pure then they would get 8 points.
II. Availability standards:
Availability standards has 70 points which are future bifurcated as follows:
IC PACKS – RGB/ CANS/ TETRA/ 400ML
IC – 12 pcs for coke, sprite & leads CSP Brand (Thumps Up)
IC – 6 pcs for maaza & balance 2 CSP brand (Thump up)
FC PACKS – 600ML/ 750ML/ 1.2 LITRES/ 1.25 LITRES/ 2.25 LITRES
 Coke is the focus Brand of the company so Coke is having maximum weightage.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 56
 Sprite fastest growing Brand of Coca-Cola so it’s having 2nd highest weightage
 Maaza is profitable pack of Coca-Cola
 Reasons for keeping all brands in availability standards is company gets range selling.
III. Activation standards:
 Price communication:
Price related communication towards all market participants (customers, competitors,
intermediaries, public press etc.).
Price communication is important factor for Coca-Cola Company so that customers are aware
about the products types, price and size of the products.
This would in turn increase the volume of the company.
 Activation:
Activation is a very important because activation helps to boost the sales. Activation is done
through boards i.e. glow sign. DPS, Flanges and Combo boards.
It includes availability of flex board, flange, 3 tier racks, shelf display, cooler top etc.
IV. Bonus Points:
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 57
GREEN PARAMETERS:
Green parameters have total 120% and it’s being bifurcated as follows:
GREEN PARAMETERS (2014) i DAS
Cooler Billing with Coke 50%
No. of SKUs per invoice 25%
All Outlets Billing 10%
%Distribution on IDAS 15%
TOTAL SCORE 100%
BONUS POINTS
Cooler productivity 15%
1.25 liters Bill cut 5%
TOTAL SCORE WITH BONUS 120%
 Sales Force Discipline
 % Distributors on iDAS
 Sales Force Effectiveness
 All Cooler Outlets billed with Brand COKE
 Average no. of SKUs per Invoice
 All Outlet Billing
 Driving Returns
 Cooler Productivity
 Tel-sell coverage
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 58
1) Cooler Billing With Coke:
 Coca-Cola Company’s premium Brand among all is ‘‘COKE’’ and to increase the market
share of coke into the Indian markets Hindustan Coca-Cola Beverages Pvt. Ltd as kept
the highest % share in green score so that they can increase the market share of coke
 Each and every cooler outlet should compulsorily billed with at least 1 physical case of
Brand COKE, at least once in a month
 Billing can be done at one go or separately, totaling up to 1 physical case
 Less than 95% cooler outlet billing leads to 10 points penalty on Total Score
 Cooler outlet billing bookmark are being circulated every week to facilitate daily tracking
Thus, Cooler billing with coke plays a major role in Green parameters and makes
compulsory selling of coke to retailers which in turn increase the volume of coke which
would result into increase market share of ‘COKE’ which is the premium brand of coke.
2) No. of SKUs per invoice:
SKU – Stock keeping Unit
 No. of SKUs per invoice Coca-Cola Company’s second largest percentage share
in green parameters.
 Its knows as Drives range selling of our brands and packs
 5 SKUs per bill is being proposed as the target norm
 Average no. of SKUs per Invoice =
SKUs sold per invoice X No. of invoice
Total no. of Invoice
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 59
No. of SKUs No. of Invoices
1 50
2 100
3 450
4 200
5 120
6 40
7 30
8 10
Total 1,000
Working of SKUs:
 E.g. a Pre-Seller generates 1000 invoices in a
month, which are a mix of 1, 2, 3, 4, 5, 6, 7, 8
SKUs as shown in the table
 His Average number of SKUs per invoice then
becomes
= (1 X 50) = 50
+ (2 X 100) = 200
+ (3 X 450) = 1,350
+ (4 X 200) = 800
+ (5 X 120) = 600
+ (6 X 40) = 240
+ (7 X 30) = 210
+ (8 X 10) = 80
---------------------------
3,530
----------------------------
Divided by Total no of Invoice which is
1,000 = 3,530 / 1000
Hence, Average no. of SKUs per Invoice
= 3.5;
Which is 40% Ach
 SKUs would help the company to have range selling and also helps in all brand
growth as Market developers are given base of minimum 5SKUs.
 This would also help in overall volume growth.
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 60
3) All Outlets Billing
 Market developer productivity is increased as he/she has to visit each and every
outlets to bill it.
 Volume of the company increases
4) %Distribution on IDAS
 Company want transparency in the business.
5) Cooler productivity
 Aims at making our assets “sweat” enough
 Cooler productivity is for asset utilization that are being given to retailers
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 61
 Methodology:
Company has divided East Ahmedabad into 8 depots and company had told me to work under
two depots
The areas which is visited is mentioned below:
Area Depot Retail Shops Work Done
Motera Rajan Sales 80 Productivity, Brand Order
New C.G Road Rajan Sales 100 Brand Order
Adalaj Rajan Sales 80 Brand Order, Cooler
Productivity
Chandkheda Rajan Sales 100 All outlets Billing
New Maningar Kamala Trading Co-
operation
70 Cooler outlets with coke
billcuts
Vastral-A Kamala Trading Co-
operation
35 Productivity
Vastral-B Kamala Trading Co-
operation
40 Cooler Outlets with coke
bill cuts
Vastral-C Kamala Trading Co-
operation
37 Cooler Purity
Ambica Nagar Kamala Trading Co-
operation
40 External and internal
activation
Odhav Kamala Trading Co-
operation
45 Productivity
Jasodanagar Kamala Trading Co-
operation
35 Brand Order, Cooler Purity
GIDC Kamala Trading Co-
operation
40 Activation, Cooler Purity
Gaumtipur Kamala Trading Co-
operation
50 Activation
 I visited the above mentioned areas with their respective MD’S and worked on improving
their Red and Green scores
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 62
Kamala Trading Co-operation
Rajan Sales
RESULTS:
Green Score:
 A
b
o
v
e
 Maps show the change is green score from April to May in Rajan Sales and from
May to June in the Kamala Trading Co-operation
92
94
96
98
100
102
104
April May
Green Score
111.5
112
112.5
113
113.5
114
114.5
115
115.5
116
116.5
May June
Green Score
Kamala Trading Co-operation
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 63
90
92
94
96
98
100
102
104
106
May June
Red Score
77
78
79
80
81
82
83
84
85
86
april May
Red Score
 RED SCORE:
 Maps shows changes of Red Score from April to May in Rajan Sales and from May to
June in the Kamala Trading Co-operation
Rajan Sales
Kamala Trading Co-operation
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 64
Findings and analysis:
 There was increase in score in each and parameters of green and Red
 In recent times certain people and organization have created negative image of
the brand by aligning that the product is not good for health which has damaged
the brand image of Coke
 The area I visited I found that market share of Coca-Cola is around 70% and that
of Pepsi is 30%
 Retailers many a times expects freebies from the Company
 As targets were set by the company well in advance the Md’s have to perform to
give their best so that the targets can be achieved and hence in this way
efficiency of the whole department was increased
 Coca-Cola’s brand Thumps up is most preferred brand by the people
 Coca-Cola’s brand Maaza is the most favorite brand of the people in the juice
section
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 65
SUGGESTION:
 The company should more effectively handle visi-cooler complaints
 Company should ensure whether company’s actual schemes are reaching to the
retailers
 Company should undertake checks such as surprise visit so that they can see the
actual scenario of the market and workings of MD’S
 The market I visited, consumption of 400ml PET bottles were less because
customers are unaware about new packs so advertisement and marketing activities
regarding this packs should be increased
 As per demand forecasting the availability of the product should be there, an
unavailability of the product is indirect loss to the company
 Coca-Cola should also give sells target to retailers and if they achieve those
targets the should be given special schemes or discount this will in turn help in the
volume growth as retailers would focus on selling Coca-Cola’s products
 Company should keep the retailers happy by paying regular visits to them and
also ask them to continuously monitor the consumers and their problems
 Adds showing negative image of brand coke on social media should be stopped
and Coca-Cola company should counter attack on it
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 66
CONCLUSION:
Branding of Coca-Cola:
We associated our self with IPL at the motera stadium and carried out different activities during
the matches that made the brand more powerful than the competitors
Sales and promotion:
 During the IPL matches: Coke deployed a strategy to sell the product before IPL (so
that people get refreshment on the stadium) and after the match because Pepsi as a sales
counter was absent at the time of post-match, hence sales could be maximized.
 Mainly hoardings were done at the entrance of the gate of Motera stadium so that it can
be seen by maximum number of people
 To reinforce brand image, inculcate uniformity among employees and to attach a trust
factor on the customers, interns and employees promoting brand were given coke t-shirts
Getting the review of the retailers:
 I visited around 800 outlets at regular time intervals to get their reviews about the supply
of our products and if any complains were their than the company instantly took steps to
solve issues
Learning different sales strategies:
 Strategies like placing the stalls much ahead of the rival’s outlets and changing the price
at last moment were the strategies that Coca-Cola opted at the time of IPL
 In the end during my internship period I learnt a lot from Coca-Cola as the company
provided me practical knowledge and field exposure that is extremely necessary from the
marketing perceptive
HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 67
Bibliography
BOOKS:
Marketing Management – Kotler Philip
Websites:
 www.thecoca-colacompany.com
 www.coca-colaindia.com
 www.wikipedia.org

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  • 1. SUMMER INTERNSHIP PROJECT ON COCA-COLA Submitted to: Som Lalit Institute of Management Studies Prepared By: Krunal Chacha Roll No: 12 PGDM
  • 2. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 1 PREFACE This report is prepared by the Post Graduate Diploma in Management (PGDM) student of Som- Lalit institute of Management Studies. This is the final report produced as a part of a study undertaken during a summer internship at Hindustan Coca-Cola beverages Pvt. Ltd In the Post Graduate program we are required to undertake training at the end of the Second semester for two months and gather important and relevant information about the working of an organization in the real corporate world. The training is conducted in order to provide us experience and valuable practical knowledge about the management of an organization. This report is prepared on the basis of the learning, experience and the practical exposure that we have gained in these two months of training period.
  • 3. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 2 ACKNOWLEDGEMENT I take the opportunity to express my profound gratitude and deep regards to my mentor (Mr. Satpal Chavla at Hindustan Coca-Cola beverages Pvt. Ltd) for exemplary guidance, monitoring and constant encouragement throughout the course of the Summer Training Programme. The blessing, help and guidance given by him time to time shall carry with me a long way in the journey of life on which I am about to embark. I wish to express my sincere thanks to Som Lalit Institute of Management Studies- Ahmedabad, for giving me chance to do this summer training at Hindustan Coca-Cola beverages Pvt. Ltd. I would like to thank Mr. Anand Trivedi and Mr. Amit Shah and marketing team for supporting and guiding me throughout my project. I also take the opportunity to express a deep sense of gratitude to all the market developers for their cordial support, valuable information and guidance; this helped me in completing the task through various stages of the training period. I am obliged to faculty of (Som Lalit Institute of Management Studies), for the valuable information provided by them in their respective fields. I am grateful for the knowledge provided by them so that I was able to apply in the practical world i.e. in the organisation. Last but not least, I would like to thank all those who have helped me directly or indirectly during the course of this summer internship at Hindustan Coca-Cola beverages Pvt. Ltd
  • 4. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 3 Executive Summary: The whole journey from the beginning to completion of my internship under which I made the project on the most popular company in soft drink industry the Hindustan Coca-Cola beverages Pvt. Ltd, was a great experience and learning. It taught me how to merge theoretical and practical fundamentals of Marketing, Distribution, and Sales etc. I have tried to include detailed description on soft drink industries and introduction of company along with its history, valuable mission and vision, manufacturing process and Distribution chains of Hindustan Coca-Cola beverages Pvt. Ltd I have divided my project into three parts: 1. MIT- Sales and promotion during IPL 2. Sales push for the retailers having Coca-Cola coolers but ordering Coca-Cola products 3. Ensuring the compliance of the companies set parameters for MD’s At last I have stated few recommendations which have been observed by me during my internship and conclusion. In the end during my internship period I learnt a lot from Coca-Cola as the company provided me practical knowledge and field exposure that is extremely necessary from the marketing perceptive
  • 5. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 4 Table of content: INTRODUCTION TO SOFT DRINK INDUSTRY 6 HISTORY OF SOFT DRINKS: 7 SOFT DRINK INDUSTRY IN INDIA: 8 KEY FEATURES OF INDIAN BEVERAGE INDUSTRY: 11 COMPANY PROFILE 12 HINDUSTAN COCA COLA BEVERAGES IN INDIA 15 VISION, MISSION AND VALUES OF COCA-COLA 19 MANUFACTURING PROCESS AT HCCBPL 20 BUSINESS PLAN MODEL AT HCCBPL: 22 DISTRIBUTION CHAIN: 23 DISTRIBUTION ROUTES: 24 TYPE OF OUTLET (CHANNEL) 25 PACKAGES OF THE PRODUCT: 27 PRODUCTS OF COCA-COLA: 28 PRICE OF THE CRATE: 34 COKE AND PEPSI: 36 ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN HCCBPL: 37 COCA-COLA & IPL: 38
  • 6. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 5 RESEARCH OBJECTIVE: 38 FINDING: 46 FIELD WORK FOR GETTING OUR RETAILERS REVIEW: 49 FINDINGS: 49 RED AND GREEN PARAMETERS: 50 RESULTS: 62 FINDINGS AND ANALYSIS: 64 SUGGESTION: 65 CONCLUSION: 66 BIBLIOGRAPHY 67
  • 7. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 6 Beverage Non-Alcoholic Beverages Alcoholic Beverages Non-carbonated Carbonated Fruit Based Grain Fruit Juices, Coffee, Tea, Packaged Water Colas, Soda, Tonic Water Wine, Brandy Beer, Whisky Introduction to soft drink industry A beverage is a drink specifically prepared for human consumption. Beverages almost always largely consist of water. Drinks often consumed include: Water (both flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy drinks, Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy products like milk. Commonly, drinks are filled into containers, like glass or plastic bottles, steel or aluminum cans as well as cardboard supported packages, like the "Tetra Pack" or others. Filling of beverages can be done cold, hot, ambient and cold-aseptic filling to mention the latest trend of beverage marketing and technology. The beverage is mainly categorized into two major categories based upon the alcoholic and nonalcoholic nature of the drink. Non-Alcoholic beverages are further o two types based upon carbon content. These beverages contain Fruit juices, Coffee, Tea, Soda, Colas. The Alcoholic beverages are based upon the fruit content and grain. It may be Wine, Brandy, Whisky or Beer.
  • 8. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 7 History of soft drinks: 1798-The term "soda water" first coined. 1810-First U.S. patent issued for the manufacture of imitation mineral waters. 1819-The "soda fountain" patented by Samuel Fahnestock. 1835-The first bottled soda water in the U.S. 1850-A manual hand & foot operated filling & corking device, first used for bottling soda water. 1851-Ginger ale created in Ireland. 1861-The term "pop" first coined. 1874-The first ice-cream soda sold. 1876-Root beer mass produced for public sale. 1881-The first cola-flavored beverage introduced. 1885-Charles Aderton invented "Dr Pepper" in Waco, Texas. 1886-Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia. 1892-William Painter invented the crown bottle cap. 1898 -"Pepsi-Cola" is invented by Caleb Bradham. 1899-The first patent issued for a glass blowing machine, used to produce glass bottles.
  • 9. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 8 Soft drink industry in India: India has a population of more than 1.150 Billion which is just behind China. According to the estimates, by 2030 India population will be around 1.450 Billion and will surpass China to become the World largest in terms of population. Beverage Industry which is directly related to the population is expected to maintain a robust growth rate. The price stability throughout the year has contributed to the increase in domestic liquor sales. The Indian beverage market offers hot options. According to Dabur, the fruit beverages industry in India now stands at Rs. 1100 crores (approx. Euro 180 million) and the market has grown at the rate of 30% where Dabur India, through the new launch Real Burst, is looking at establishing a market share of 4-5% in next 2-3 years. Part of the industry of fast moving consumer goods is also the beverage industry. The total beverage industry in India is being estimated to grow at 17% this year, according to experts. "Food and beverages segment has not suffered despite the slowdown in the economy. FMCG in our stores has done very well. In fact, we registered 10-15% growth in this segment last year," said a spokesperson at Spencer's Retail Ltd. Beverage majors like Coca Cola India, for example, again reported growing sales. Coca-Cola in India reported a solid first quarter 2009 results not only despite a challenging economic environment, but also with unit case volume increasing by 31%. And eight quarters out of the 11 quarters had a double-digit growth. To foreign observers of the market, these figures might sound unbelievable, as Western markets are saturated and have not seen such figures for long time. But in India, various positive factors drive the beverage markets. One is the rising number of people in the middle class with extra money to spend on new beverages like wine, new brands of imported whiskey, or the fancy energy drinks, some of which are really good to enable people to work longer, to listen longer during conferences, and even to party longer and have fun. Leader in this segment is Red Bull, but some other good and very effective drinks, one even very healthy are already or soon entering the market. Another factor is the sheer size of the number of people in India. Even the rural households, as
  • 10. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 9 long as the monsoon is good, get purchasing power and can participate in consumer markets. Where ever the purchasing power is still not big enough, companies offer smaller packs for Rs. 10 or Rs. 5, especially to be seen in the snack market. Hot summers in India also help a bit to sell beverages. The large untapped market potential for store-bought non-alcoholic beverages, in particular carbonated beverages, juice based drinks and energy or sports drinks among urban/suburban consumers in India. Approximately 120 billion litres of beverages are consumed by Indians every year, but only 5% represent store-bought packaged beverages. The majority of Indian consumers (75%) still consume non-alcoholic store-bought beverages ‘less than once a day’, highlighting a large untapped market opportunity, particularly in the carbonated drinks and juice or juice-based categories (estimated to be worth $1.5 Billion and $.25 billion respectively). In order to increase consumption and penetration of such beverages manufacturers will have to address the two primary reasons why some Indians abstain entirely, that is, health concerns and undesirable taste. The study investigates consumption frequency and habits, the importance of various product attributes, and brand preferences across age, household income, city in India and beverage category. This study has implications for manufacturers, distributors, retailers and investors hoping to capitalize on the growth of these beverage categories in India and distinguish themselves in the increasingly crowded marketplace. India is a booming market for the beverage industry as well. It already accounts for about ten per cent of global beverage consumption today. This means that the country has the third-largest beverage consumption after the USA and China. But that is not the end of the road. Market analyses indicate that beverage sales in India will be increasing by more than 60 per cent between 2008 and 2012. Since India is (still) a country of tea and coffee drinkers, packaged cold drinks have enormous potential. Packaged water, beer, spirits and carbonated drinks are recording what rates are in some cases high double-digit growth. All in all, annual per capita consumption of packaged beverages is supposed to triple from 2.6 litres in 2000 to 8.7 litres in 2012.
  • 11. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 10 Demand for milk and milk-based beverages are also rising. India is the world’s biggest producer and consumer of milk, since milk plays a major role in the Indian diet. The consumption of milk and milk-based beverages has increased by an annual average of 2.7 per cent in the last four years and most of them (65 per cent) are sold “loose” / unpackaged. The proportion of the market accounted for by packaged milk and dairy products are increasing, however. In the past four years, for example, demand for milk filled in pouches has grown by 4.5 per cent annually, while the figure for milk in cartons is about 25 per cent. The rising consumption is making it necessary for appropriate investments to be made by the beverage industry. The sector is highly fragmented and 95 per cent of these producers have small or very small operations. Of this, the health beverage industry is valued at $230 million. The Indian beverage industry faces over supply in segments like coffee and tea. However, more than half of this is available in unpacked or loose form. Indian hot beverage market is a tea dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in preferred in western India. The urban-rural split of the tea market was 51:49 in 2000. Coffee is consumed largely in the southern states. The size of the total packaged coffee market is 19,600 tonnes or $87 million. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during offseason. The market is predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. Mineral water market in India is a 65 million crates ($50 million) industry. On an average, the monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during peak season.
  • 12. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 11 Key Features of Indian Beverage Industry:  Indian Beverage Market CAGR 21%  India ranked 3rd in largest beverage consumption after the USA and China  Total Indian Beverage Consumption every year:120 billion liters  Fruit Beverages Market size: Rs 1100 crores (approx. Euro 180 million)  Fruit Beverage market growth rate: 30%  Majority of Indian consumers:75% consume Non-alcoholic beverages and 25% Alcoholic Beverages  Carbonated Drinks Market size: $1.5 Billion  Juice or juice-based Drinks Market size: $.25 billion  Health beverage industry is valued at $230 million  Indian Beer Market Growth Rate: 7 - 8 %  Milk-based beverages consumption has increased by an annual average of 2.7 per cent in the last four years  Total packaged coffee market size: 19,600 tonnes or $87 million.  The Indian soft drink market is worth Rs. 21,600 million a year with a growth of around 7%.  The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion.  Peak season soft drink consumption : 25 million  Off-season soft drink consumption: 15 million  The market is predominantly urban with 25 per cent contribution from rural areas.  Coca cola and Pepsi dominate the Indian soft drinks market.  Indian Mineral water market size: 50 million industry.
  • 13. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 12 Company Profile History of Coca-Cola: JOHN PEMBERTON The world has changed in many ways since pharmacist; John Stith Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the product mean so many things to hundreds of Millions of consumers around the globe. Coca-Cola products are served more than 705 million times every day, quenching the thirsts of consumers in more than 195 countries in every climate. That's a long way to come after such a modest beginning. May1886 - Pemberton concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first "distributed" the new product by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design or accident,
  • 14. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 13 Carbonated water was teamed with the new syrup, producing a drink that was proclaimed "Delicious and Refreshing." Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the name and penned, in the unique flowing script that is famous worldwide today. 1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the No. 1 soft drink brand ever since. 1891 - Atlanta entrepreneur Mr. Candler had acquired complete ownership of the Coca-Cola business for $2,300. Pemberton was forced to sell because he was in a state of poor health and was in debt. Within four years, Candler's merchandising flair helped expand consumption of Coca-Cola to every state and territory. 1917 - 3 Million Coke's sold per day. "COCA-COLA" is the world’s most recognized trademark. 1919 - The Coca-Cola Company was sold a group of investors for $25 million. 1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff for 25 million dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president for six decades. Woodruff's leadership took the business to unrivaled heights of commercial success, making Coca-Cola an institution the world over. During the Woodruff era, Mr. Woodruff made a promise to the armed forces of the United States to supply Coca-Cola to every serviceperson. He said that costs and location did not matter; he supplied 5 billion bottles to the service. 1927 - The first Coca-Cola radio advertisement. 1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time. 1943 On June 29, an urgent cablegram arrived from General Dwight Eisenhower's Allied Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve American service men overseas. Eventually, 64 plants were set up during WWII. 1950 - Advertising on the television began. Currently Coca-Cola is advertised on over five hundred TV channels around the world. 1961 - Sprite was introduced. 1971 - The song "I'd like to buy the World a Coke" was released. 1978 - The two liter bottle was introduced, and during that same year the company also introduced plastic bottles 1982 - Diet Coke was introduced in July.
  • 15. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 14 1985 - The Coca-Cola Company made what has been known as one of the biggest marketing blunder. They stumbled into a new formula in efforts to produce diet Coke. They put forth 4 million dollars of research to come up with the new formula. The new formula was a sweeter variation with less tang, it was also slightly smoother. The factor that influenced the change was that Coke's market share fell 2.5 percent in four years. Each percentage point lost or gain meant 200 million dollars. This was the first flavor change since the existence of the Coca-Cola Company. The change was announced April 23, 1985 at the Vivian Beaumont Theater at the Lincoln Center. Some two hundred TV and newspaper reporters attended this very glitzy announcement. The change to the world's bestselling soft drink was heard by 81 percent of the United States population within twenty-four hours of the announcement. Within a week of the change, one thousand calls a day were flooding the company's eight hundred number. Most of the callers were shocked and/or outraged, many said that they were considering switching to Pepsi. Within six weeks, the eight hundred number was being jammed by Six thousand calls a day. The company also fielded over forty thousand letters, which were all answered and each person got a coupon for the new Coke. Many American consumers of Coca- Cola asked if they would have the final say. When Pepsi heard that the Coca-Cola Company was changing its secret formula they said that it was a decision that Pepsi tastes better. Roger Enrico, the president and CEO of Pepsi-Cola wrote a letter to every major newspaper in the U.S. to declare the victory. Coca-Cola management had to decide: Do nothing or "buy the world a new Coke". They decided to develop the new formula. 1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke was brought back in addition to the new one. This was greatly due to dropping market share and consumer protest. The market share fell from a high of 15 percent to allow of 1.4 percent. This was said to be a classic marketing retreat. Coca-Cola executives admitted that they had goofed by taking the old Coke off the market. The Coca-Cola Company’s eight hundred number received eighteen thousand Calls of gratitude. The comeback of old Coke drove stock prices to the highest Level in twelve years. This was said to be the only way to regain the lead on the Cola wars. 1993 - Coca-Cola exceeds 10 Billion cases sold worldwide. 1996 - The Summer Olympics was held in Atlanta, Georgia, the home of Coca-Cola.
  • 16. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 15 Hindustan Coca Cola beverages in India Coca-Cola was the leading soft drink brand in India until 1977, when it left the country rather than revealing its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991. In India, the Coca-Cola system comprises of two different companies, a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, and a Company-owned bottling entity, named, Hindustan Coca-Cola Beverages Pvt Ltd. (As shown in following chart)
  • 17. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 16 Coca-Cola India Pvt. Ltd. is a Wholly-Owned Subsidiary of The Coca-Cola Company, USA. While building the consumer franchise for The Coca-Cola Company trademarks, it also leads world class governance systems for the operations of all partners in bottling, suppliers, distributors and other stakeholders. Hindustan Coca-Cola BeveragesPvt. Ltd. – As part of the Bottling Investments Group of The Coca-Cola Company, HCCBPL has 24 bottling plants at strategic locations in various states spread across India. We cover approximately 65% of bottling operations for the Coca-Cola System in India.  HCCBPL has an extensive distribution system spanning more than a million outlets operating with world class execution standards. The focus of the system is to develop strong customer value while delivering preferred choice of refreshment at an arm's length of desire to the consumer. Over the years, Hindustan Coca-Cola Beverages Pvt. Ltd. has focused on building world class operations based on principles of safety, profitability and solid governance to claim sustained growth. As part of our journey of moving towards being a World Class Company, we have strengthened our organization in terms of Supply Chain, Infrastructure, Market Execution, People, Processes, Compliance, Governance and Route-to-Market. This approach has enabled us to build our portfolio through launching new packs and brands, coupled with a competitive pricing strategy based on a balance of value pricing and eliminating waste. Its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 2.2 million retailers. Today, our brands are the leading brands in most beverage segments. The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry into India. The company will be investing another USD 5 Billion till the year 2020. The Coca- Cola system in India directly employs over 25,000 people including those on contract. The system has created indirect employment for more than 1, 50,000 people in related industries through its vast procurement, supply and distribution system. We strive to ensure that our work
  • 18. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 17 environment is safe and inclusive and that there are plentiful opportunities for our people in India and across the world. The beverage industry is a major driver of economic growth. A National Council of Applied Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of that. In terms of employment, the NCAER study notes that "an extra production of 1000 cases generates an extra employment of 410 man days." As a Company, our products are an integral part of the micro economy particularly in small towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is amongst the largest domestic buyers of certain agricultural products. As an industry which has strong backward and forward linkages, our operations catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. Our operations also lead to incremental growth for enterprises engaged in post-production activities like merchandising, marketing and sales. In addition, we share best practices and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries. The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition entails that our Company's business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. We leverage our unique strengths to actively support and respond to local needs -- be it the need for education, health, water or nutrition. We have used our distribution network for disaster relief, our marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable water. The Coca-Cola India Foundation is now taking forward in the community at large, projects and programs of social relevance to carry forward the message of inclusive growth and development.
  • 19. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 18 HCCBPL has an extensive distribution system spanning more than a million outlets operating with world class execution standards. The focus of the system is to develop strong customer value while delivering preferred choice of refreshment at an arm's length of desire to the consumer. In the network of the Coca-Cola system, Coca-Cola has either of the two bottling operation done for the company. 1. COBO – Company Owned Bottling Operations. The company’s owned bottling plants are the 100% subsidiary of HCCBPL, it holds all the rights to manufacture the products as well as to bottle the manufactured products. After 1993, when Coca-Cola re-entered the Indian market, it did a lot of changes in existing system of soft drink market prevailing in India, by acquiring the major brands and the bottling operations from Parle. Coca-Cola & PepsiCo launched in India at the same time so when Coca-Cola bought the leading beverages products of Parle, the Parle’s properties were took over by PepsiCo. After that the Coca-Cola Company founded some of its own bottling operation in India. In year 1997, company did a major investment of $700 million in India by purchasing other bottling operations, all around India and introduces new technology in them. These bottling plants are called Company Owned Bottling Operations. Company has full ownership and operational right for these types of operations. 2. FOBO – Franchise Owned Bottling Operations. Franchise Owned Bottling Operations are the other type of bottling operation for the company to these; the company has given the right to produce the product for the company and to supply with the territory assigned by the company. Company has no ownership or operational right / control over these.
  • 20. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 19 Vision, Mission and Values of Coca-Cola
  • 21. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 20 Manufacturing process at HCCBPL
  • 22. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 21 The manufacturing of the products of Coca-Cola involves the following steps: • Water is received from the River Cauvery and it passes through the water treatment plant, further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water. •In the syrup room, the concentrate received from another bottling plant situated at Pune, is blended with the sugar syrup •Once both the water and the final syrup are ready, they are both mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product. • On the other hand, simultaneously, the returnable glass bottles are DE palletized, inspected and washed for the purpose of filling in the final product in it. This step does not take place in the PET bottle line as the bottles once used are disposed. • The product is finally filled in the bottles, crowned (in case of RGB)/capped (in case of PET bottles), labeled and cased in order to be sent into the warehouse for distribution.
  • 23. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 22 Business plan model at HCCBPL: Coca-Cola India
  • 24. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 23 Distribution chain: HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them. A typical distribution chain at HCCBPL 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 PRODUCTION PLANT WAREHOUSE DEPOT WAREHOUSE DISTRIBUTION WAREHOUSE RETAIL STOCK RETAIL SHELF CONSUMER
  • 25. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 24 DISTRIBUTION ROUTES: The various routes formulated by HCCBPL 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.
  • 26. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 25 Type of Outlet (Channel) A. Grocery – Store stocking a variety of regular use household items. The channel provides an opportunity for penetration as it propels home consumption. It includes all the kiriana stores, departmental stores, supermarkets, provision stores etc. B. Convenience – These offer pan bidi and the stock includes cigarettes ,mint, confectionary and CSD .it also covers STD and ISD phone booths as well .customers generally drop by All day long hours for a break .this is extremely useful in driving impulse purchase. C. Eating & Drinking – Eating and drinking ranges from high end restaurants to small dhabas .these outlets offer multiple opportunities to enhance sales as people usually order something to drink along with food. There are 2 types of E&D: E&D1 AND E&D2
  • 28. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 27 Packages of the product: The Coca-Cola products are available to its customer in different sizes and packs depending on the beverage. Basically the company manufactures the product and bottles it in 5 different kinds of packs. 1. RGB – Returnable / Refillable Glass Bottles. 2. PET – Plastic Bottles 3. CAN – Aluminum Cans (Tins) 4. Tetra – Tetra Packs 5. BIB – Beverages in Bag RGB – These bottles are the glass bottles which are available in the size of 200ml & 300 ml. The consumer can buy these bottles from the retailer but once the beverage is consumed by the consumer the bottle is to be returned to the retailer and the amount paid to the retailer is only for the beverage. The retailer will later on return the bottle to the manufacturer and the bottle will be reused after certain cleaning procedures. PET – These are the plastic bottles made from Polyethylene terephthalate. The plastic bottles are much liked by the consumers as they don’t have to return the bottle to the retailer. The consumer can buy the bottles from the retailer and drink it at any preferred time. The PET bottles are available in the sizes of 400ml, 600ml, 750ml, 1ltr, 1.2ltr, 1.25 ltr, 2.25 ltr. CAN – These are the aluminum cans which can be easily seen in the market. The costs of these cans are higher than the normal PET and RG bottles. TETRA – These are the special packs used for the juices only. The CSD are not available in these packs. BIB – These are the bags which are not available to the consumers, these bags are used for the fountain machines at the mall, theaters, etc. It contains the beverages only without the CO2. The carbon dioxide is later added when it is being served to the customer in glass.
  • 29. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 28 Products of Coca-Cola: Cola Section:  COCA COLA In India, Coca-Cola was the leading soft-drink till 1977 when the government policies necessitated its departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation. Packs 200 ml 300ml 400ml 600ml 750ml 1.75ml 2.25ml Price 10 16 20 34 35 55 80  DIET COKE Launched in 1982 in America, Diet Coke (also known as Coca-Cola light in some countries) has become the world's third largest soft drink. Packs 500ml Price 30
  • 30. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 29  THUMS UP It 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.This brand known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys. Packs 200 ml 300ml 400ml 600ml 750ml 1.25ml 2.25ml Price 10 16 25 34 35 55 80 Orange Section:  FANTA Internationally Fanta - The orange drink of The Coca-Cola Company is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993.Over the Years Fanta has occupied a strong market place and is identified as "The Fun Catalyst”. Perceived as a fun youth brand, Fanta stands for its vibrant color; tempting taste and tingling bubbles taste that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends. Packs 200 ml 300ml 400ml 600ml 750ml 1.25ml 2.25ml Price 10 16 25 34 35 55 80
  • 31. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 30 Lemon section: SPRITE Sprite is global leader in the lemon line category, is the largest sparkling beverage brand in India. Since its inception is 1999, Sprite has not only established itself as a brand which successfully boasts it's 'cut-thru' perspective with an authentic, edgy, irreverent, urban and straight forward style, but has also achieved status of an undisputed youth 'badge' brand. Today Sprite is one of the top two sparkling soft drinks in the country. Packs 200 ml 300ml 400ml 600ml 750ml 1.25ml 2.25ml Price 10 16 20 34 35 55 80 LIMCA 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’’. Lime „n‟ Lemoni” Limca, Derived from “nimbu” + “jaisa”.. Hence “lime sa”. Limca has been lived up to its promise refreshment and has been the original thirst choice of millions of consumers for over 3 decades. Born in 1971 has remained unchallenged as the No.1Sparkling Drink in the cloudy lemon segment. Packs 200 ml 300ml 600ml 750ml 1.25ml 2.25ml Price 10 16 34 35 55 80
  • 32. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 31 Juice section:  MAAZA Mango. It is a fruit associated with good times like no other. It’s called the king o fruits. Introduced in 1970s, Maaza has today come to symbolize the very spirit of mangoes. Universally loved for its taste, color, thickness and wholesome properties, Maaza is the mango lover's first choice. Packs 200 ml 250ml 600ml 750ml 1.2ml Price 10 15 37 38 55 Minute Maid:  PULPY ORANGE Minute Maid – one of the world's largest juice and juice drink brands. The history of the Minute Maid brand goes as far back as 1945 when the Florida Food Cooperation developed orange juice powder. They branded it Minute Maid, a name connoting the convenience and the ease of preparation (in a minute).  NIMBU FRESH: Launched first in South of India in January 2010, Minute Maid Nimbu Fresh, started refreshing the whole of India by April 2010.
  • 33. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 32  MIX FRUIT: Launched in the East in 2010 and scaled up in 2011 across the country.  APPLE: Launched in the East in 2010 and scaled up in 2011 across the country.  MANGO: Launched in 2012 across India.
  • 34. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 33  KINLEY: Kinley water comes with the assurance of safety from The Coca-Cola Company. That is why we introduced Kinley with reverse –osmosis along with the latest technology to ensure purity of our product. Because we believe that right to pure, safe drinking water is fundamental. Packs 500ml 750ml 1 Ltr Price 10 10 20  KINLEY SODA: Launched in 2002 Kinley soda today is no.1 national Soda brand. Packs 300ml 600ml 750ml Price 10 15 18
  • 35. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 34 Price of the Crate: PACKS Brands BOTTLES MRP MRP COST PRICE 200 ml All Brands 24 10 240 209 300 ml Coke, Fanta, sprite, Limca, Thumps up 24 16 384 320 400ml Coke, Fanta 24 20 480 437 400ml Thumps up, Fanta 24 25 600 546 500ml Coke Diet 24 30 720 600 600ml Coke, Fanta, sprite, Limca, Thumps up 24 34 816 710 750ml Coke, Fanta, sprite, Limca, Thumps up 24 35 840 764 1.25ml Fanta, sprite, Limca, Thumps up 12 55 660 600 1.75ml Coke 12 55 660 600 2.25ml Coke, Fanta, sprite, Limca, Thumps up 9 80 720 655
  • 36. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 35 Juice Section: MAAZA: Packs BOTTLES MRP MRP COST PRICE 200 ml 24 10 240 209 250ml 24 15 360 313 600ml 24 37 888 773 750ml 24 38 912 830 1.2 ltr 12 62 744 677 KINLEY SODA: Packs BOTTLES MRP MRP COST PRICE 300ml 24 10 240 209 600ml 24 15 360 314 750ml 24 18 432 312 KINLEY: Packs BOTTLES MRP MRP COST PRICE 500ml 24 10 240 144 750ml 24 10 240 204 1 ltr 15 20 300 170
  • 37. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 36 COKE AND PEPSI: Coke Pepsi Cola Cola (Pepsi) Coca Cola Thums up Orange Orange (Fanta) (Mirinda) Clear lemon Clear Lemon (Sprite) (7UP) Cloudy lemon Cloudy Lemon (Limca) (Lemon Mirinda) Juice Juice (Maaza) (Slice) Soda Soda (Kinley) (Lehar Evervess) Water Water (Kinley) Aquafina
  • 38. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 37 Organization structure of the sales department in HCCBPL:
  • 39. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 38 Coca-Cola & IPL: Indian Premier League (IPL) is a Twenty20 cricket tournament where different franchise teams participate for the title. IPL is one of the most-watched Twenty20 cricket league in the world and also known for its commercial success. Ahmedabad one of the venues for IPL and it had Four matches. Coca-Cola found out that they had great opportunity to promote and establish the brand image of Coke in minds of consumers during the IPL. Research objective: Establishing Brand Image Of coke during IPL at Motera Stadium Methodology:  Before IPL:  Coca-Cola Company found an opportunity to promote its brand Coke at the street of Motera  Street had total 36 shops which included Pan Shops, convenience shop, STD Booths, grocery etc. out of which 6 outlets had already tie up with Coca-Cola and 5 outlets with Pepsi.
  • 40. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 39 Picture Showing Outlets on the Street of Motera Stadium  Coca-Cola Company decided to crack the remaining Shops i.e. to convince the retail shops to sale coke during IPL  Company’s employees and interns where divided into teams and were able to Crack 25 Outlets in total out of 36 into Coca-Cola  Depots: Central stock keeping system which was located at an optimum distance from all the outlets. Visat 3 Outlets 8 Outlets Motera Stadium Motera Road- 12 Outlets 3 Outlets 5 Outlets From Gandhinagar- 5 Outlets
  • 41. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 40  To crack the retail shops we gave various offers to them like providing them cash discounts, giving stock at low cost etc.  Hoardings:-  Interception points were decided on the basis of 1) Were maximum numbers of Car use to pass 2) At queues 3) Traffic signals 4) Crowded places  Retail shops owners were allowed to sell each and every products of Coca-Cola but Company decided to sale only its Premium Brand i.e. ‘‘COKE’’ and that to PET bottles of 400ml of Coke, Coke diet Cans, Coke diet PET bottles of 500ml and Kinley water at company own shops Reason behind it:  Coca-Cola’s branding and promotion  Customers can easily carry the bottles and Can
  • 42. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 41  During IPL-match:  Company’s employees and interns were divided into teams according to Interception points  Stock, drums and ice were delivered at Interception points before 4 hours of IPL match so that each and every points has chilled coke  To reinforce brand image, inculcate uniformity among employees and to attach a trust factor on the customers, interns and employees promoting brand were given coke t-shirts.  The pictures below show how sold Coca-Cola on the street of motera stadium with a slogan ‘‘COKE AT 20 ONLY’’
  • 43. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 42  Optimizing Sales: Coke deployed a strategy to sell the product before IPL (so that people get refreshment on the stadium) and after the match because Pepsi as a sales counter was absent at the time of post-match, hence sales could be maximized.  After IPL match:  Sales Monitoring: One person was assigned a particular outlet to monitor sales and report to the company.
  • 44. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 43  Changes after IPL Match-1:  Following changes were done from the learnings of the 1st IPL Match: 1. Hoardings and marketing activities were increased New Marketing activities 2. Manpower management: We monitored sales in a particular area to understand the manpower requirement at specific outlets and during peak hours. Manpower was moved from a low selling outlet to high selling outlet during peak hours to optimize the human resource utilization. 3. Monitoring the inventory: As the product sales was more than that of the intake, we suggested to increase the drums from 54 from 33 based on sales figures. Also, Kinley was a strong product pull post IPL match hence, based on the sales count, drums were doubled.
  • 45. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 44 Totalsales during IPL matches: Pack Company’s own outlets Retail Outlets Total 400ml Coke 472 235 707 Diet Coke Can 10 0 10 500ml Coke Diet 3 0 3 750 ml 0 29 29 500 ml Kinley water 78 25 103 750ml Kinley water 0 15 15 1 ltr Kinley water 69 223 292 200 ml 118 118 1.25 ltr 10 10 Total 632 655 1287
  • 46. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 45  Competitor’s Activities:  Competitor’s focused pack for first two matches were 200ml RGB  In 3rd match they shifted to CAN & 500 ml Water  They were able to sell total of 300 cases volume during all IPL
  • 47. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 46 FINDING:  Why this Brand..? o Coca-Cola:  Coca-Cola’s Premium Brand is Coke and company always want to increase the market share of Coke so company had only focused on its premium brand during IPL matches o Pepsi:  Pepsi tried and focused on each and every brand which was a failure  Why this Pack..? o Coca-Cola  Company decided to sale only its Premium Brand i.e. ‘‘COKE’’ and that to PET bottles of 400ml of Coke, Coke diet Cans, Coke diet PET bottles of 500ml  Total sales – 1287 cases o Pepsi:  Pepsi’s focused pack for first two matches were 200ml RGB(Returnable / Refillable Glass Bottles)  In 3rd match they shifted to CAN & 500 ml Water  Total sales- 300 cases  Brand image of Coke Interns were given the task to see the sales during all IPL matches and through that I found out that Brand Image of Coke was high in the minds of people as people preferred more of Coke than Pepsi
  • 48. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 47  Preparation  Planning on the previous day  We use to check the stock availability of retailers and take orders so that stock is sufficient for the next day that is for IPL match  Delivering products from depot to respective outlets  Stock was stored at depot and from depot it was delivered to retail Outlets  Ensuring accounting of product sold and realization of money  At the end of the IPL match total stock sold was calculated against total revenue being generated during match  Steps for Improving efficiency  Ensuring that malpractices (Black marketing) are not prevalent which can act as deterrent to brand image and loss of revenues  Counter strategies to Pepsi - dynamic strategies on a day to day ; hour to hour basis  Human Resource Management  We monitored sales in a particular area to understand the manpower requirement at specific outlets and during peak hours. Manpower was moved from a low selling outlet to high selling outlet during peak hours to optimize the human resource utilization  Proper marketing activities  Hoardings  Mainly hoardings were done at the entrance of the gate of Motera stadium so that it can be seen by maximum number of people  Uniforms of employees and interns  To reinforce brand image, inculcate uniformity among employees and to attach a trust factor on the customers, interns and employees promoting brand were given coke t-shirts  Professional Selling  All educated and marketing people selling coke in the field  Making the surroundings happening, thereby associating with the brand image of coke as to ‘Open Happiness’
  • 49. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 48  Stalls were all red color with tag line ‘‘Open Happiness’’ and in order to support our message of Opening Happiness we hired drummers who played music and created lively atmosphere  Response of People:  Response of people was very high, encouraging and also sales of Coca-Cola was very good  Reasonfor more sale:  Coca-Cola’s Interception points were far more ahead then the competitor  Coca-Cola only sell Coke which was at Rs. 20 Only and competitor was selling its each and every Brand
  • 50. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 49 Field Work for getting our retailers review: ResearchObjective To crack the retail outlets of Ahmedabad areas where they have Coca cola coolers but don’t purchase Coca Cola products. Methodology The company gave the list of 40 retail outlets which were to be cracked from following areas: Areas Total No. of shops visited Juhapura 10 Anandnagar 2 Changodar 3 Vejalpur 8 Sarkhej 4 Prahladnagar 5 Jodhpur 1 Ramdevnagar 2 Santipura 1 Satellite 3 S.G Highway 1 Findings: 1) Retailers were not satisfied with the services that are provided by market developers 2) Retailers were not satisfied with the discount offers provided to them as competitors provides more discount offers 3) Delivery of stock was irregular from depot 4) Company’s Schemes were also not provided to retailers by Market developer 5) Stock ordered by retailers and stock delivered to them use to be different
  • 51. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 50 RED AND GREEN PARAMETERS:  Research Objective: To ensure the compliance of the company set parameters (Red and green) for MD are fulfilled upon. o Geographic segmentationof Ahmedabad: Ahmedabad Geographic segmentation is divided into 2 parts i.e. East Ahmedabad and West Ahmedabad  I worked under ASM(Area sales manager) of east Ahmedabad which has total 8 depo’s under him  STL/SE/MDE(/Sales executive/Market developer executive) are in charge of the Depo’s under which MD’s (Market Developer) work  Red and Green are support to sale system and these system helps to increase the volume of the Coca-Cola Company  GSM, ASM, STL/SE/MDE and MD’S each and every one are graded under green and Red parameters Ahmedabad-GSM Ahmedabad East- ASM AhmedabadWest- ASM 8 Depo’s- STL/SE/MDE 31 MD’S 2 Depo & 1 DSD STL/SE/MDE 25 MD’S
  • 52. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 51  GSM Green and Red Scores Depends on the scores of East and West ASM Scores, ASM Red and green scores Depends Upon Depo’s Under him, STL/SE/MDE Green and Red Scores Depends upon Scores of MD’s Green and Red score  Reinforce execution standards  Enhance execution capability  Have a greater impact on business  Increase action orientation
  • 53. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 52 RIGHT EXECUTION DAILY As part of the Bottling Investments Group of The Coca-Cola Company, Hindustan Coca-Cola Beverages Pvt. Ltd. (HCCBPL) works actively with approximately 3800 distributors across the country to place beverage products across 1.4 Million retail outlets to provide refreshment to 25 Million consumers every day. With around 130 SKUs in the portfolio, a strong frontline sales team maintains the discipline of making the products available at an arm’s reach by maintaining world class in outlet execution and conforming to exacting standards. RED (Right Execution Daily) provides a ready reckoner in the form of ‘Picture of Success’ to the ‘Feet on Street’ to ensure consistency and high standards of execution in around 450,000 RED outlets across the country. RED helps drive creation of a soft drink culture ensuring easy availability to the consumers across rural and urban clusters. Extensive support is provided by HCCBPL to help build the business of a customer as he moves up the ‘Pyramid’ from Basic Product Availability to Chilled Availability evolving into Activated Chilled Availability. HCCBPL creates strong customer value by evolving customers from provider of basic product to delivering an experience to the consumer. RED is much more than being the World’s largest Retail track It involves defining the Picture of Success, Actual Execution, Building Capability of the frontline, improve associate engagement and a process of Continuous improvement R.E.D is the survey method that company started earlier. For the survey of R.E.D., Company had hired the person from A.C. NIELSON one of the best survey company. This survey gets done once in a
  • 54. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 53 month. R.E.D is the set of norms divided into outlet wise. RED IS DIVIDED INTO 4 PARTS: 1) Cooler Standards (20 Points) 2) Availability Standards(70 points) 3) Activation Standards(10 points) 4) Bonus Points(10 points) I. Cooler standards: Cooler standards has 20 points which are divided as follows: 1. Prime position: Coolers should be kept at such a place that when customer enters a shop cooler is easily visible to them. 2. Brand Order (COLT-J): Cooler should always be in this format that is C- Coca-Cola O- Orange (i.e. Fanta) L – Limca
  • 55. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 54 T – thumps Up J – Juice (i.e. Maaza) So Coca-Cola should be first in cooler followed by Fanta, Limca, Thums up and then Maaza. A format COLT-J is being shown in above picture. 3. PACK ORDER (2 self IC Pack): IC packs includes RGB, Cans, Tetra packs and 400ml.  RGB- Returnable / Refillable Glass Bottles  Aluminum Cans (Tins)  Tetra – Tetra Packs In Pack Order first two self should always be filled with IC Pack which is clearly seen in the above picture. 4. SOVI IN OUTLET: (10 points) SOVI – Share of visible inventory SOVI is divided into two parts: 1) Stock pressure 2) Shelf-purity  Stock pressure: If retailer have 7 caser cooler than he should have total stock of minimum 7 caser both including warm and cold stock.
  • 56. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 55  Shelf-Purity: Coca-Cola provides cooler to retail outlets but company ensures that cooler should only have stock of Coca-Cola into the coolers. If retailer fulfill the stock pressure criteria then company checks shelf purity. Example: A retail outlet has 20 caser cooler of Coca-Cola then a retail should have minimum 20 caser stock including both warm and cold stock so the outlet is eligible for SOVI 10 points. After stock pressure company checks shelf-Purity and 20 caser cooler have 5 self so if all the shelf are pure then they would get 10 points, if 4 shelf’s are pure then they would get 8 points. II. Availability standards: Availability standards has 70 points which are future bifurcated as follows: IC PACKS – RGB/ CANS/ TETRA/ 400ML IC – 12 pcs for coke, sprite & leads CSP Brand (Thumps Up) IC – 6 pcs for maaza & balance 2 CSP brand (Thump up) FC PACKS – 600ML/ 750ML/ 1.2 LITRES/ 1.25 LITRES/ 2.25 LITRES  Coke is the focus Brand of the company so Coke is having maximum weightage.
  • 57. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 56  Sprite fastest growing Brand of Coca-Cola so it’s having 2nd highest weightage  Maaza is profitable pack of Coca-Cola  Reasons for keeping all brands in availability standards is company gets range selling. III. Activation standards:  Price communication: Price related communication towards all market participants (customers, competitors, intermediaries, public press etc.). Price communication is important factor for Coca-Cola Company so that customers are aware about the products types, price and size of the products. This would in turn increase the volume of the company.  Activation: Activation is a very important because activation helps to boost the sales. Activation is done through boards i.e. glow sign. DPS, Flanges and Combo boards. It includes availability of flex board, flange, 3 tier racks, shelf display, cooler top etc. IV. Bonus Points:
  • 58. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 57 GREEN PARAMETERS: Green parameters have total 120% and it’s being bifurcated as follows: GREEN PARAMETERS (2014) i DAS Cooler Billing with Coke 50% No. of SKUs per invoice 25% All Outlets Billing 10% %Distribution on IDAS 15% TOTAL SCORE 100% BONUS POINTS Cooler productivity 15% 1.25 liters Bill cut 5% TOTAL SCORE WITH BONUS 120%  Sales Force Discipline  % Distributors on iDAS  Sales Force Effectiveness  All Cooler Outlets billed with Brand COKE  Average no. of SKUs per Invoice  All Outlet Billing  Driving Returns  Cooler Productivity  Tel-sell coverage
  • 59. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 58 1) Cooler Billing With Coke:  Coca-Cola Company’s premium Brand among all is ‘‘COKE’’ and to increase the market share of coke into the Indian markets Hindustan Coca-Cola Beverages Pvt. Ltd as kept the highest % share in green score so that they can increase the market share of coke  Each and every cooler outlet should compulsorily billed with at least 1 physical case of Brand COKE, at least once in a month  Billing can be done at one go or separately, totaling up to 1 physical case  Less than 95% cooler outlet billing leads to 10 points penalty on Total Score  Cooler outlet billing bookmark are being circulated every week to facilitate daily tracking Thus, Cooler billing with coke plays a major role in Green parameters and makes compulsory selling of coke to retailers which in turn increase the volume of coke which would result into increase market share of ‘COKE’ which is the premium brand of coke. 2) No. of SKUs per invoice: SKU – Stock keeping Unit  No. of SKUs per invoice Coca-Cola Company’s second largest percentage share in green parameters.  Its knows as Drives range selling of our brands and packs  5 SKUs per bill is being proposed as the target norm  Average no. of SKUs per Invoice = SKUs sold per invoice X No. of invoice Total no. of Invoice
  • 60. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 59 No. of SKUs No. of Invoices 1 50 2 100 3 450 4 200 5 120 6 40 7 30 8 10 Total 1,000 Working of SKUs:  E.g. a Pre-Seller generates 1000 invoices in a month, which are a mix of 1, 2, 3, 4, 5, 6, 7, 8 SKUs as shown in the table  His Average number of SKUs per invoice then becomes = (1 X 50) = 50 + (2 X 100) = 200 + (3 X 450) = 1,350 + (4 X 200) = 800 + (5 X 120) = 600 + (6 X 40) = 240 + (7 X 30) = 210 + (8 X 10) = 80 --------------------------- 3,530 ---------------------------- Divided by Total no of Invoice which is 1,000 = 3,530 / 1000 Hence, Average no. of SKUs per Invoice = 3.5; Which is 40% Ach  SKUs would help the company to have range selling and also helps in all brand growth as Market developers are given base of minimum 5SKUs.  This would also help in overall volume growth.
  • 61. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 60 3) All Outlets Billing  Market developer productivity is increased as he/she has to visit each and every outlets to bill it.  Volume of the company increases 4) %Distribution on IDAS  Company want transparency in the business. 5) Cooler productivity  Aims at making our assets “sweat” enough  Cooler productivity is for asset utilization that are being given to retailers
  • 62. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 61  Methodology: Company has divided East Ahmedabad into 8 depots and company had told me to work under two depots The areas which is visited is mentioned below: Area Depot Retail Shops Work Done Motera Rajan Sales 80 Productivity, Brand Order New C.G Road Rajan Sales 100 Brand Order Adalaj Rajan Sales 80 Brand Order, Cooler Productivity Chandkheda Rajan Sales 100 All outlets Billing New Maningar Kamala Trading Co- operation 70 Cooler outlets with coke billcuts Vastral-A Kamala Trading Co- operation 35 Productivity Vastral-B Kamala Trading Co- operation 40 Cooler Outlets with coke bill cuts Vastral-C Kamala Trading Co- operation 37 Cooler Purity Ambica Nagar Kamala Trading Co- operation 40 External and internal activation Odhav Kamala Trading Co- operation 45 Productivity Jasodanagar Kamala Trading Co- operation 35 Brand Order, Cooler Purity GIDC Kamala Trading Co- operation 40 Activation, Cooler Purity Gaumtipur Kamala Trading Co- operation 50 Activation  I visited the above mentioned areas with their respective MD’S and worked on improving their Red and Green scores
  • 63. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 62 Kamala Trading Co-operation Rajan Sales RESULTS: Green Score:  A b o v e  Maps show the change is green score from April to May in Rajan Sales and from May to June in the Kamala Trading Co-operation 92 94 96 98 100 102 104 April May Green Score 111.5 112 112.5 113 113.5 114 114.5 115 115.5 116 116.5 May June Green Score Kamala Trading Co-operation
  • 64. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 63 90 92 94 96 98 100 102 104 106 May June Red Score 77 78 79 80 81 82 83 84 85 86 april May Red Score  RED SCORE:  Maps shows changes of Red Score from April to May in Rajan Sales and from May to June in the Kamala Trading Co-operation Rajan Sales Kamala Trading Co-operation
  • 65. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 64 Findings and analysis:  There was increase in score in each and parameters of green and Red  In recent times certain people and organization have created negative image of the brand by aligning that the product is not good for health which has damaged the brand image of Coke  The area I visited I found that market share of Coca-Cola is around 70% and that of Pepsi is 30%  Retailers many a times expects freebies from the Company  As targets were set by the company well in advance the Md’s have to perform to give their best so that the targets can be achieved and hence in this way efficiency of the whole department was increased  Coca-Cola’s brand Thumps up is most preferred brand by the people  Coca-Cola’s brand Maaza is the most favorite brand of the people in the juice section
  • 66. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 65 SUGGESTION:  The company should more effectively handle visi-cooler complaints  Company should ensure whether company’s actual schemes are reaching to the retailers  Company should undertake checks such as surprise visit so that they can see the actual scenario of the market and workings of MD’S  The market I visited, consumption of 400ml PET bottles were less because customers are unaware about new packs so advertisement and marketing activities regarding this packs should be increased  As per demand forecasting the availability of the product should be there, an unavailability of the product is indirect loss to the company  Coca-Cola should also give sells target to retailers and if they achieve those targets the should be given special schemes or discount this will in turn help in the volume growth as retailers would focus on selling Coca-Cola’s products  Company should keep the retailers happy by paying regular visits to them and also ask them to continuously monitor the consumers and their problems  Adds showing negative image of brand coke on social media should be stopped and Coca-Cola company should counter attack on it
  • 67. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 66 CONCLUSION: Branding of Coca-Cola: We associated our self with IPL at the motera stadium and carried out different activities during the matches that made the brand more powerful than the competitors Sales and promotion:  During the IPL matches: Coke deployed a strategy to sell the product before IPL (so that people get refreshment on the stadium) and after the match because Pepsi as a sales counter was absent at the time of post-match, hence sales could be maximized.  Mainly hoardings were done at the entrance of the gate of Motera stadium so that it can be seen by maximum number of people  To reinforce brand image, inculcate uniformity among employees and to attach a trust factor on the customers, interns and employees promoting brand were given coke t-shirts Getting the review of the retailers:  I visited around 800 outlets at regular time intervals to get their reviews about the supply of our products and if any complains were their than the company instantly took steps to solve issues Learning different sales strategies:  Strategies like placing the stalls much ahead of the rival’s outlets and changing the price at last moment were the strategies that Coca-Cola opted at the time of IPL  In the end during my internship period I learnt a lot from Coca-Cola as the company provided me practical knowledge and field exposure that is extremely necessary from the marketing perceptive
  • 68. HINDUSTANCOCA-COLA BEVERAGES PVT. LTD. 67 Bibliography BOOKS: Marketing Management – Kotler Philip Websites:  www.thecoca-colacompany.com  www.coca-colaindia.com  www.wikipedia.org