Body Matter of organization study of coke

7/28/2019 Body Matter of organization study of coke

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1.1 INTRODUCTION

Organization is a set of people working together for accomplishment of common goal. The roles

and responsibilities are stated clearly without any ambiguity. The positions occupied by different

individuals are presented in the form of organization chart. Organization structure is essential forcontinuity of the mission and co-ordinates and controls the business activities. Organization helps

management to perform its activities effectively, optimum use of technological improvement

growth and diversification, creatively, effective use of physical resources and HR.

Organizational studies, sometimes known as organizational science, encompass the

systematic study and careful application of knowledge about how people act within organizations.

Organizational study sometimes is considered a sister field for, or overarching designation that

includes the following disciplines: industrial and organizational psychology, organizational

behavior, human resources, and management. However, there is no universally accepted

classification system for such subfields.

BACKGROUND OF THE STUDY

The report is an organisational study or a survey of an organisation. It aims at learning the

working environment by making factual observations about the functioning of the organization. Itis also a study on the organizational hierarchy, functions and activities of the members of the

organization. It examines the organisational performance, changes in the environment and the

organisations efficiency in attaining its objectives. It also gives us an understanding of the inter

relationship of various departments.


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1.2 INDUSTRY PROFILE

A focus on the FMCG sector has attracted attention in recent days. Our company have

introduced their own brands and are aggressively positioning themselves within segments of the

domestic market. The rising importance of branded segments in the domestic market combinedwith the pressure of import competition is blurring the boundaries between exports and domestic

production in countries with large home markets, such as India. With the changing lifestyles,

organized FMCG is playing a key role in structuring the Indian domestic market.

FMCG sector in India is witnessing a huge revamping exercise as traditional markets

make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty

stores. The Coca-Cola Company is truly global, and its main product is recognised and consumed

worldwide. The Company organises and structures itself in a way that reflects that fact. At the

same time, the Company looks to meet the particular needs of regional markets sensitively and its

structure also needs to reflect that fact.

Leading FMCGs are becoming more firmly entrenched, increasing their scale of

operations and stabilizing their logistics and technology initiatives. The Coca-Cola Company is

the world's largest beverage company and is the leading producer and marketer of soft drinks.

The Company markets four of the world's top five soft drinks brands: Coca-Cola, Diet Coke,

Fanta and Sprite.


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1.3 COMPANY PROFILE

This is the remarkable story about the evolution of an iconic brand and the company that bears its

name. Since its birth at a soda fountain in downtown Atlanta, Georgia, in 1886, Coca-Cola has

been a catalyst for social interaction and inspired innovation. These unique moments in history,arranged in chronological sequence, have helped create a global brand that provides billions of

moments of refreshment every day.

Thirsty consumers around the globe now enjoy Coca-Cola Company products 1.7 billion times

every single dayabout 19,400 beverages every second.

1886

May 8. Coca-Cola is created by John S. Pemberton and served at Jacobs Pharmacy. Nine drinksa day are sold during this year. Company accountant, Frank Robinson, names the drink Coca-

Cola, and thinking the two Cs would look well in advertising, pens the famous Spencerian script

logo. The first newspaper ad appears announcing Coca-Cola as a Delicious and Refreshing

Beverage.

1888

Asa Candler begins to acquire personal control of the Coca Cola formula and patents from John

Pemberton and his partners.

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. Since then 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 1.3 million retailers. Today, our brands are

the leading brands in most beverage segments. The Coca-Cola Companys brands in India include

Coca-Cola, Fanta Orange, Fanta Apple, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Maaza

Milky Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and Nestea Iced tea, the

Georgia Gold range of teas and coffees and Vitingo (a beverage fortified with micro-nutrients).

In India, the Coca-Cola system comprises of 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, a Company-owned bottling entity, namely,


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Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-Cola

Company, who are authorized to prepare, package, sell and distribute beverages under certain

specified trademarks of The Coca-Cola Company; and an extensive distribution system

comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells

concentrate and beverage bases to authorized bottlers who are authorized to use these to produce

our portfolio of beverages.These authorized bottlers independently develop local markets and

distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other

businesses. In turn, these customers make our beverages available to consumers across India.

The Coca-Cola Company has invested nearly USD 1.1 billion in its operations in India

since its re-entry back into India in 1992. 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 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, the 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. Their 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.


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The Coca-Cola Company has always placed high value on good citizenship. Their basic

proposition entails that our Companys business should refresh the market; enrich the workplace;

protect and preserve the environment; and strengthen the community. They leverage their unique

strengths to actively support and respond to local needs -- be it the need for education, health,

water or nutrition. They have used our distribution network for disaster relief, their 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. For more details on activities of the Coca-Cola

India Foundation, please visit the website of the Coca-Cola India Foundation,

The company people are the face of our brands. They are talented and passionate, and

they take immense pride in being a part of this Company with a global scale. 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. They strive to ensure that their work environment is

safe and inclusive and that there are plentiful opportunities for the people in India and across the

world.


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1.4 ORGANIZATION STRUCTURE

Managing Director

The Managing Director is the head of the company and he directs the General Manager and

frames policies for the functioning of the organisation. The general manager is accountable of all

the activities going on in the organisation to the managing director. The General Manager and the

CFO are directly accountable to the Managing Director.

General Manager

The General Manager here is responsible for all the activities of the organization. The general

manager personally does the purchasing of goods and assigns and divides the work among the

managers. All the respective Managers of the various departments are accountable to the General

Manager.

ManagingDirector

General Manager

HR Department

MarketingDepartment

ProductionDepartment

Supply and Chainmanagement

CFOAccounts

Department


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Chief F inancial Officer

The Chief financial officer has equal powers as the general manager. He is responsible for the

allocation of funds and is directly accountable to the managing director. The Chief Accountant

reports to the CFO regularly.

Chief Accountant

The Chief Accountant verifies all the accounts and also assists the CFO and is accountable to the

CFO. The accountants are accountable to the Chief Accountant.

Secretary

The Secretary is the subordinate to the general manager and assists the general manger in

performing all the activities of the stores and provides all the details about the sales and also does

the accounting for all the goods inwards and outwards. Also does the inventory management at

the warehouse. The Secretary prepares the reports of the total sales of all the outlets and furnishes

it to the general manager on a regular basis.

Hr Manager

The H.R. Manager determines the requirement of man power for each of the outlets and

departments and recruits the employees for the organisation and also settles the disputes among

the employees. All the H.R. executives are governed by the H.R. Manager.

Production Manager

The Production manager is responsible for the proper maintenance of the raw materials and the

functioning of the mixing unit which produce soft drinks for the outlets. The assistant production

manger is accountable to the production manager.


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AUTHORITY AND RESPONISIBILTY RELATIONSHIP

The Coca-Cola Company has a corporate (Head Office) segment that is responsible for giving the

Company an overall direction and providing support to the regional structure.

Key strategic decisions at The Coca-Cola Company are made by an Executive Committee of 12

Company Officers. This Committee helped to shape the six strategic priorities set out earlier. The

Chair of the Executive Committee acts as a figurehead for the Company and chairs the board

meetings. He is also the Chief Executive Officer (CEO) and as such he is the senior decision

maker. Other executives are responsible either for the major regions (e.g. Africa) or have an

important business specialism e.g. the Chief Financial Officer.

As a company whose success rests on its ability to connect with local consumers, it makes sense

for The Coca-Cola Company to be organised into a regional structure which combines

centralisation and localisation. The Company operates six geographic operating segments - also

called Strategic Business Units (SBUs) - as well as the corporate (Head Office) segment.


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Each of these regional SBUs is sub-divided into divisions. Take the European union, SBU, for

example. The UK fits into the Northwest Europe division. This geographical structure recognises

that:

markets are geographically separated tastes and lifestyles vary from area to area. As do incomes and consumption patterns markets are at different stages of development.

At a more local level the management of The Coca-Cola Company involves a number of

functional specialisms. The management structure for Great Britain illustrates this.

The structure of Coca-Cola Great Britain combines elements of centralisation and

decentralisation. Divisions and regions operate as business unit teams, with each Director

reporting to the General Manager, i.e. Division President.


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However, there is a matrix structure for each function e.g. the Finance Director in the GB

Division reports to the GB President, but also to (dotted line) the Finance Director of North West

Europe Division. In addition, functions within the Company operate across geographical

boundaries to share best practice.

To take another example of local decision making at a regional (local) level the various SBUs are

responsible for region-specific market research, and for developing local advertising, e.g. using

the languages of the countries in which The Coca-Cola Company operates. A major region like

Great Britain has its own marketing structure, organised as shown on the diagram.

Product support

The way The Coca-Cola Company works reflects the many countries and cultures in which it

does business. It owns or licences nearly 400 brands in non-alcoholic beverages serving

consumers in over 200 countries. An essential part of the organisation's structure therefore

focuses on ensuring that individual products are given the best possible support in regional

markets.


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THE RELATIONSHIP BETWEEN STRATEGY AND STRUCTURE

An organisation's strategy is its plan for the whole business that sets out how the organisation will

use its major resources. An organisation's structure is the way the pieces of the organisation fit

together internally. It also covers the links with external organisations such as partners.

For the organisation to deliver its plans, the strategy and the structure must be woven together

seamlessly.

The goal of The Coca-Cola Company is 'to be the world's leading provider of branded beverage

solutions, to deliver consistent and profitable growth, and to have the highest quality products and

processes.'

To achieve this goal, the Company has established six strategic priorities and has built these into

every aspect of its business:

1. Accelerate carbonated soft drinks growth, led by Coca-Cola2. Broaden the family of products, wherever appropriate e.g. bottled water, tea, coffee,

juices, energy drinks

3. Grow system profitability & capability together with the bottlers4. Creatively serve customers (e.g. retailers) to build their businesses5. Invest intelligently in market growth6. Drive efficiency & cost effectiveness by using technology and large scale production to

control costs enabling our people to achieve extraordinary results everyday.

There are many ways to structure an organisation. For example, a structure may be built around:

function: reflecting main specialisms e.g. marketing, finance, production, distribution product: reflecting product categories e.g. bread, pies, cakes, biscuits process: reflecting different processes e.g. storage, manufacturing, packing, delivery.


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Organisational structures need to be designed to meet aims. They involve combining flexibility of

decision making, and the sharing of best ideas across the organisation, with appropriate levels of

management and control from the centre.

Modern organisations like The Coca-Cola Company, have built flexible structures which,wherever possible, encourage teamwork. For example, at Coca-Cola Great Britain any new

product development (e.g. Coca-Cola Vanilla) brings together teams of employees with different

specialisms.

At such team meetings, marketing specialists clarify the results of their market research and

testing, food technologists describe what changes to a product are feasible, financial experts

report on the cost implications of change.

PACKAGING

Packaging is a crucial element of the business, as it helps keep the drinks fresh, hygienic and

portable, but they are constantly seeking improvements in this area to lower they impact on the

environment.

At Coca-Cola packaging vision is zero waste. As the company is take steps towards this vision,

They have made a commitment to:

Reduce

Every year they produce around 67 million of the iconic glass bottles in Great Britain. This new

'ultra' bottle design weighs only 210g (down from 263g), meaning the use of glass has been cut

by 3,500 tonnes a year.


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The plastic bottles have changed too, today weighing 24g compared with 39g in 1994. They have

also evolved the aluminium cans - the can 'wall' has been reduced to the thickness of a human

hair, making it five per cent lighter than previous designs. The design has been adopted across the

drinks industry and the Waste and Resources Action Programme (WRAP) has estimated that the

new can design will save 15,000 tonnes of aluminium across the EU each year.

Recycle

Currently nearly 97 per cent of our waste is recycled, with only three per cent going to landfill.

Wakefield site has already achieved zero waste, with other sites on track to achieve this in 2010

and 2011.

They are also encouraging Coca-Cola consumers to recycle cans and bottles after enjoying the

company drinks. To this end, They have set up Recycle Zones around the country to enable you

to make a difference, too.

Reuse

They look at packaging materials as a resource to reuse. The glass bottles currently contain about

37 per cent recycled glass, while half of the aluminium in our cans is recycled. Using the metal in

this way saves 95 per cent of the energy needed to manufacture it from its raw form.

They are now looking at how can increase the use of recycled material in the plastic bottle. They

are already on the company way to achieving the target of 25 per cent recycled plastic in all

bottles across Europe by 2012.
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EMPLOYMENT

They make it a priority to treat our people well, help them develop and give them a rewarding

working life. To us, this means creating an environment where employees can:

Excel in their performance Develop skills for improvement Move towards their career goals

By providing training and development programmes, on-the-job learning, coaching and feedback,

They make sure that everyone who works with us has the resources they need to learn more and

build their careers. And also to have some fun along the way - They want Coca-Cola to be a great

place to work where people are inspired and motivated to be the best they can be.

Employee engagement

Their success depends on motivated and committed employees. They need them to feel that they

play a real part in helping our business meet its goals and have an understanding of what they are.

They have several different ways of measuring our employees' level of engagement with the

business and satisfaction with their working lives - such as through constructive dialogue with

their employee representative groups and employee surveys.

Great place to work

The company thinks it's important for their employees to enjoy their working life and they want

to make sure that working for their business is fulfilling, rewarding and fun. Key areas that we

focus on as part of the Great Place to Work programme include an on-site company gym, free

Coca-Cola drinks and fruit, GDA information in the staff restaurant, summer hours and flexible

working, a learning allowance and a Cycle to Work scheme.

Coca-Cola's specially appointed Green Team, which encourages employees to live more

sustainably, coordinates initiatives including the Thames21 river clean up, water usage in the

workplace and personal carbon footprinting. In 2009, the company entered the Great Place To

Work Institute UK's rankings for Great Britain for the first time at No. 26. The company also

achieved a ranking of No. 57 in the The Sunday Times Top Green Companies to work for.
http://www.coca-cola.co.uk/environment/thames-21-river-clean-up.htmlhttp://www.coca-cola.co.uk/environment/thames-21-river-clean-up.html


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Training and development

To attract and retain the best people, they recognize that they need to invest in their development.

They take training and development very seriously. They have continuously invested over the

years with the aim of strengthening this important area of business performance, placingemphasis on employee development plans, internal talent management, leadership development

for managers and employee performance management.

Pay and reward

Offering competitive pay and motivating benefits is crucial to both attracting and retaining the

most talented people to drive our business forward. They consider a number of different elements,

such as pension, healthcare and additional holiday, which form a total compensation and benefits

package for our employees. They rewards programs are regularly benchmarked against a select

peer group of the major competitors and key players in the local market.

Open and inclusive

They are committed to providing an inclusive working environment in which everyone is treated

fairly. They believe that having people from different backgrounds, with different life experiences

and talents is a real bonus for the company business. That's why respecting and valuing the

diversity of the people is central to their vision and values. It's also why their employmentpolicies and practices have been developed to protect against discrimination and ensure equal

opportunity and fair treatment for all, regardless of age, sex or ethnic background.

The company goal is simple. they will try and give back as much as they take - or, where

possible, more than they take. This is what called as Live Positively:

Beverage Benefits


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The company goal is to quench every thirst and every need, provide and tailor drinks for every

lifestyle, life stage and occasion based on individual needs. They strive to offer quality products

you can trust all the time.

Active, Healthy Lifestyles

The company goal is to help people lead active, healthy lives by offering a wide variety of drinks,focusing on information and education, and supporting physical activity.

Climate and Energy Protection

The company goal is to grow the business, not the carbon in their manufacturing operations. They

improve the energy efficiency and reduce the emission of greenhouse gases in cold drink

equipment.

Packaging


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The company goal is to advance a packaging framework in which our packaging is no longer seen

as waste, but as a valuable resource for future use.

Community

Coca-Cola is a global company with local roots in every community where they do business.

They are committed to the needs of their communities with wide-ranging programs.

Workplace

They foster open environments, as diverse as the markets they serve, where workplace rights are

respected and people are inspired to be the best they can be.


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1.5 NEED FOR THE STUDY

The study is taken to fulfill the requirement of M.B.A degree course of Sona College of

Technology, Salem. The training is undertaken to know the application of the theoretical aspects

in our course in the corporate environment and gain firsthand experience and expose ourselves tocorporate policies, ethics, culture and policies of the company.

1.6 OBJECTIVE OF THE STUDY

To know how the industry functions. To acquire knowledge of the functioning of various departments.

To understand the inter relationship between the departments and their functioning.

To understand the difference between the theoretical and practical aspects of

functioning organization.

To get real time exposure to outside corporate world. Understand how information is used in organization for decision making at various levels.

To better understand the area wise subject taught in our MBA programme.

1.7 SCOPE OF THE STUDY

The report is based on the study conducted at Hindustan Coca-Cola Beverages Ltd, Chennai.

It aims at understanding the companys establishment, organization structure,departments, techniques, marketing strategies and the advantages it has over the other

competitors.

An attempt is made to analyze the companys performance in comparison to the

theoretical aspects.

It aims to understand the skills of the company in the areas like technological

advancement, competition and in management.


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1.8 LIMITATIONS OF THE STUDY

The study is conducted at Hindustan Coca-Cola Beverages ltd, Thanjavur, this studycannot be use in any other branches.

This study cannot used at any other company dealing the similar products The company resisted to disclose information due to their internal policies Time Limit was a major constraint The Company was accept the findings and suggestions as a least consideration

proposed by the interns

The busy schedule of the managers was an hindrance for the interns to obtain

information and clarifications

1.9 SWOT ANALYSIS

Reasons or parameters considered for making the SWOT analysis

The companys reputation in the market place Its size of operations Its varied range of products Labour problems Life style of the consumers Other market players Heavy competition Technological factors Social factors Other factors


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Factors affecting the Market area attractiveness

Demographics- Density of population is very high. Each and every kind Of people fromall classes and ethnic groups visit this area which is advantageous for Favourite shop.

Cultural- Customers preference is affected by culture. For providing goodshoppingexperience, retailer should understand this culture. Favourite Shop has taken care of this

thing and has kept multi lingual people.

Demand- Population in this area is very high and income level of people is also high,hence demand is high for quality merchandise.

STRENGTHS

INTERNAL FACTORS

Popularity Well known Recognised A Lot Of Finance Branding Obvious And Easily Customer Loyalty International Trade

Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that

is virtually incomparable. Coca Cola is known very well worldwide.It's branding is obvious and

easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible

memorabilia. Without a doubt, no beverage company compares to Coca Cola's social popularity

status. Some people buy coke, not only because of its taste, but because it is widely accepted and

they feel like they are part of something so big and unifying. At the other end of the spectrum,

certain individuals choose not to drink coke, based solely on rebelling from the world's idea that

coke is something of such great power. Overwhelming is the best word to describe Coca Cola's

popularity. It is scary to think that its popularity has been constantly growing over the years and

the possibility that there is still room to grow. If you speak the words Coca Cola, it would


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definitely be recognized all around the world. Money is another thing that is a strength of the

company. Coca Cola deals with massive amounts of money all year. Like all businesses, they

have had their ups and downs financially, but they have done well in this compartment and will

continue to do well and improve. The money they are earning is substantially better than most

beverage companies, and with that money, they put back into their own company so that they can

improve. Another strength that is very important to Coca Cola is customer loyalty. The 80/20 rule

comes into effect in this situation. Eighty percent of their profit comes from 20% of their loyal

customers. Many people/families are extremely loyal to Coca Cola. It would not be rare to

constantly find bottles and cases of a product such as coke in a house. It seems that some people

would drink coke religiously like some people would drink water and milk. This is an improbable

feat. Customers will continually purchase these products, and will probably do so for a very long

time. If two parents were avid Coca Cola drinkers, this will be passed down do their children as

they grow loyal to the company. With Coca Colas ability to sell their product all over the world,

customers will continue to buy what they know and what they likeCoca Cola products

WEAKNESS

INTERNAL FACTORS

Word Of Mouth Lack Of Popularity Of Many Coca Cola Brands Most Unknown And Rarely Seen Health Issues

Coca Cola is a very successful company, with limited weaknesses. However they do have a

variety of weaknesses that need to be addressed if they want to rise to the next level. Word of

mouth is probably a strength and weakness of every company. While many people have good

things to say, there are many individuals who are against Coca Cola as a company, and the

products in which they produce. Word of mouth unfortunately is something that is very hard to

control. While people will have their opinions, you have to try to sway their negative views. If

bad comments and views are put out to people who have yet to try Coca Cola products, then that

could produce a lost customer which shows why word of mouth is a weakness. Another aspect

that could be viewed as a weakness is the lack of popularity of many of Coca Colas drinks.

Many drinks that they produce are extremely popular such as Coke and Sprite but this company

has approximately 400 different drink types. Most are unknown and rarely seen for available


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purchase. These drinks do not probably taste bad, but are rather a result of low profile or non

existent advertising. This is a weakness that needs to be looked at when analyzing their company.

Another weakness that has been greatly publicized is the health issues that surround some of their

products. It is known that a popular product like coke is not very beneficial to your body and your

health. With todays constant shift to health products, some products could possibly loose

customers. This new focus on weight and health could be a problem for the product that are

labelled detrimental to your health.

OPPORTUNITIES

EXTERNAL FACTORS

Many Successful Brands To Pursue Buy Out Competition More Brand Recognition

Coca Cola has a few opportunities in its business. It has many successful brands that it should

continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less popular

products. With a large income it has the available money to put some of these other beverages on

the market. This could be very beneficial to the company if they could start selling these other

products to the same extent that they do with their main products. Another opportunity that we

have seen being put to use before is the ability for Coca Cola to buy out their competition. This

opportunity rarely presents itself in the world of business. However, with Coca Colas power and

success, such a task is not impossible. Coca Cola has bought out a countless number of drink

brands. An easy way to turn their profit into your profit is too buy out their company. Even

though this may cost a vast amount of money initially, in the long run, if all goes to plan, it results

in a large profit. Also, the company will no longer need to worry about this product being part of

the competition. Brand recognition is the significant factor affecting Cokes competitive position.

Coca Cola is known well throughout 90% of the world population today. Now Coca Cola wants

to get there brand name known even better and possibly get closer and closer to 100%. It is an

opportunity that most companies will ever dream of, and would be a supreme accomplishment.

Coca Cola has an opportunity to continue to widen the gap between them and their competitors


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THREATS

EXTERNAL FACTORS

Legal Issues Health Ministers Competitors(Pepsi)

Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. Even

though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the changing

health-consciousness attitude of the market could have a serious effect on Coca Cola. This

definitely needs to be viewed as a dominant threat. In todays world, people are constantly trying

to change their eating and drinking habits. This could directly affect the sale of Coca Colasproducts. Another possible issue is the legal side of things. There are always issues with a

company of such supreme wealth and popularity. Somebody is always trying to find fault with the

best and take them down. Coca Cola has to be careful with lawsuits. Health minister could also be

looked at as a threat. Again, some people may try to exploit the unhealthy side of Coca Colas

products and could threaten the status and success of sales. Other threats are of course the

competition. Coca Colas main competition being Pepsi, sells a very similar drink. Coca Cola

needs to be careful that Pepsi does not grow to be a more successful drink. Other product such as

juices, coffee, and milk are threats. These other beverage options could take precedent in somepeoples minds over Coca Colas beverages and this could threaten the potential success.


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2.1 RESEARCH METHODOLOGY

It is defined as the specification of methods and procedure for acquiring the information needed.

It is a plan or frame work for doing the study and collecting the data.

2.2 RESEARCH DESIGN:

A research design is the arrangement of conditions or collection and analysis of data in a manner

that aims to combine relevance to the research purpose with economy in procedure. The research

design that is used in this study is Descriptive Research. Descriptive research is used to obtain

information concerning the current status of the phenomena to describe, What exists with

respect to variables or conditions in a situation. In this research, the researcher has no control over

the variables and can only discover causes.

TYPE OF RESEARCH

Primary research in the form of Questionnaire was used to collect data regarding the particular

subject so that the report can analyze and interpret the markets and to know if the respondents

believe they want any changes and why. Both closed and opened type questions were asked to the

respondents.

Secondary research was carried out in the form of a literature review, to compare and contrast

material and interpret the issues with a view of drawing conclusions.

PRIMARY DATA SOURCES

The primary data sources in this research were collected via questionnaires which were designed

to analyse the Retail Outlets according to the respondents in Pattukottai, Pudhukottai, and

Velankanni and interpret with FMCG markets and ask the Retail outlets if they want any need

from company and area dealer for improve the sales.

Population: 382

Population Unit: Pattukottai, Pudhukottai, Orathanadu, Alangudi, Avadiyarkovil,

gangaikonda solapuram, Thirumayam, Kandavarkottai, Nagoor, Manalmelkudi, and

Velankanni

Sample Size: 150


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Sample Unit: Pattukottai, Pudhukottai, and Velankanni

Sample Selection: Convenience Sampling

SECONDARY DATA SOURCES

The secondary sources in this research were collected via previous records, internet, textbooks,

news articles, journals, etc. The data obtained from such sources was organized and analyzed for

the project. Grocery

TABLE 2.1: PERCENTAGE OF CHANNEL SELECTION

S. NO CHANNEL PERCENTAGE

1 CONVENIENCE 37

2 GROCERY 23

3 E&D 14

INTERPRETATION:

Asper the survey conducted to above three kind of channel outlets at all the 11

population areas. From that population 70 per cent of the Outlets are from convenience shops, 20

per cent of the Outlets are from E&D Shops, 10 per cent of the outlets are from grocery shops.


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3.1 SALES ANALYSIS

TABLE -3.1: SALES ANALYSIS FOR PEPSICO

BRANDS FOR PEPSICO

PEPSI 7UP AQUAFINA MIRINDA SLICE

APRIL 10 12 9 4 9

MAY 11 14 12 3 9

JUNE 10 12 11 3 7

JULY 8 9 7 2 3

TOTAL 39 45 39 12 28

Source: Secondary data (Collected from Pepsico Area sales Manager)

Note: Units are in thousand Cases.

TABLE -3.2: SALES ANALYSIS FOR COCA-COLA

BRANDS FOR COCA-COLA

COKE SPRITE KINLEY FANTA MAAZA

APRIL 8 8 7 4 6

MAY 10 10 7 3 6

JUNE 8 8 8 3 5

JULY 6 6 4 2 3

TOTAL 34 45 26 12 20

Source: Secondary data (Collected from Coca-Cola Area sales Manager)

Note: Units are in thousand Cases.


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TABLE -3.3: TOTAL SALES ANALYSIS FOR COCA-COLA & PEPSICO

TOTAL SALES

Pepsico 1, 63, 000 Cases

Coca-cola 1, 37, 000 Cases

INTERPRETATION:

The competitor sales report datas are collected from ourArea sales manager. Based on this detail

below chart to be formed.

Here the total number cases are sold from each product fort past four months.

Results of this analysis,

Pepsico company sold at 1,63,000 cases soft drinks for past four months Coca-Cola company sold at 1,37.000 cases soft drinks for past four months So that the total sales Pepsico acquire 54% and Coca-cola acquire 46% From this result Pepsico is a Market leader and Coca-Cola is follower.

CHART3.1: SALES ANALYSIS FOR PEPSICO

0

2

4

6

8

10

12

14

APRIL MAY JUNE JULY

PEPSI

7UP

AQUAFINA

MIRINDA

SLICE


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CHART3.2: SALES ANALYSIS FOR COCA-COLA

CHART3.3: TOTAL SALES ANALYSIS FOR PEPSICO & COCA-COLA

0

1

2

3

4

5

6

7

8

9

10

APRIL MAY JUNE JULY

COKE

SPRITE

KINLEY

FANTA

MAAZA

54%

46%

Total Sales

Pepsico

Coca-cola


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3.2 RANK ANALYSIS

TABLE -3.4: RANK ANALYSIS BASED ON SALES FOR PEPSICO

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Pepsi 25 110 7 5 3

7up 130 15 0 5 0

AquaFina 0 10 82 37 21

Slice 0 0 33 85 40

Mirinda 0 0 0 84 66

Source: Primary data (Data collected from outlets).

INTERPRETATION:

In this rank analysis for based on which PEPSICO product selling most at outlets. The data

collected from outlets through schedule type of Questionnaire. Based on the data derive the

results as following.,

Most of the outlets marked as rank 1 for 7up, so in PEPSICO the top most sales productis 7up. From out of 150 outlets 130 peoples are marked as rank 1.

The mother of PEPSICO is PEPSI got second place in sales. 110 outlets are marked asrank 2.

The third most selling product is AquaFina Average selling product is Slice and Mirinda.


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CHART3.4: RANK ANALYSIS BASED ON SALES FOR PEPSICO

3.3 FACTOR ANALYSIS

TABLE -3.5: ANALYSIS FOR WHICH FACTOR AFFECTING SALES FOR PEPSICO

FactorsStrongly

AgreeAgree Neutral Disagree

Strongly

Disagree

Brand

Popularity80 60 10 0 0

Supply w/o

Shortage100 50 0 0 0

Offers 40 80 20 10 0

Dealer

Reputation0 15 85 20 30


0

20

40

60

80

100

120

140

Pepsi 7up AquaFina Slice Mirinda

Rank 1

Rank 2

Rank 3

Rank 4

Rank 5


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INTERPRETATION:

In this factor analysis used for find out which factor affecting the sales in market. The data

collected from outlets through schedule type of Questionnaire.

From the following factors which one are mostly affected sales.

Brand Popularity Supply w/o Shortage Offers Dealer Reputation

Results of this analysis as follows.,

Most of the outlets strongly agree the factors as Supply without shortage. So that thePEPSICO dealers concentrate their supply at season time, because the 100 outlets

strongly agree to this factor.

Brand Popularity is a second important factor affecting sales from the survey 80 outletsmarked as strongly agree, 60 outlets are marked as agree. The PEPSICO dealers are

provide more display boards and Coolers at that place.

The next important factor is offers should provide right time. Most of the some ruralareas offers does not provide from dealers. Dealer reputation is neutral factor.

CHART -3.5: ANALYSIS FOR WHICH FACTOR AFFECTING SALES FOR PEPSICO

0

10

20

30

40

50

60

70

80

90

100

Brand

Popularity

Supply w/o

Shortage

Offers Dealer

Reputation

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree


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TABLE -3.6: ANALYSIS FOR OUTLETS WHICH QUALITIES EXPECTING FROM

DEALERS IN PEPSICO

Rank 1 Rank 2 Rank 3 Rank 4

Supplying goods 128 62 0 0

Credit time 22 88 0 0

Loyality 0 0 118 32

Service 0 0 22 128


INTERPRETATION:

The next part of factor analysis is, what are the qualities are expecting from dealer? From outlet

point of view the following qualities are ranked by outlet owners.

The Qualities are,

Supplying goods Credit time Loyalty Service

Result of this analysis,

From the survey 128 outlets are expecting from dealers as it is good supply withoutshortage at a season time that only enough to increase sales. So that 128 outlets are

marked as rank 1.

From the survey 88 outlets are expecting credit time from dealers. Because the outletsmore quantity of product purchased at summer season time. At that time they need more

money to invest so that they need credit time

The 118 outlets are ranked 3 as loyalty Because the dealers sometimes they are notprovide a offers and not shown some price adjustments.


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CHART -3.6: ANALYSIS FOR OUTLETS WHICH QUALITIES EXPECTING FROM

DEALERS IN PEPSICO

0

20

40

60

80

100

120

140

Supplying goods Credit time Loyality Service

Rank 1

Rank 2

Rank 3

Rank 4


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4 FINDINGS, SUGGESTIONS AND CONCLUSIONS

4.1 FINDINGS

In this study the competitor of Coca-Cola is PEPSICO, they have lot positive way to improve the

sales compare to our company. That is.,

The competitorPEPSICO dealers deliver the products at lower price compare to Coca-Cola. So the retail outlets to gain more profits.

The competitor PEPSICO dealers retain the dealership for long years. So they havemutual relationship with outlets.

PEPSICO Dealer reputation is good Unlimited credit period enjoyed by the dealers in PEPSICO, so that the outlets are got

more boost up and they not switch over the other product.

Comparing with Coca-Cola the sales promotions are more than higher In PEPSICO Trade discounts are given more than Coca-Cola. The PEPSICO Dealer is easily accessible and well known, established business person of

the region

PEPSICO Deliver the order in correct time compare to Coca-Cola PEPSICO purchase bulk order more than the requirement in that area compare to Coca-

Cola

Logistics is better than the Coca-Cola because they have owned lot of vehicles and largesize of storage area.


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4.2 SUGGESTIONS

From this study we found some ideas to improve our sales in our area, that is.,

Coca-Cola need to improve their dealer reputation in the region The company increase the trade discounts or equal to PEPSICO Deliver the order in correct time is a important factor so the company verified the dealers

are have a enough amount of vehicles

Billing details will give correctly as per required order for shop owners Price changing details will be informed to shoppers at regularly whenever price changed Dont change Dealers at short time intervals Sales advertisements will be increased like visual boarding items, cooling stands etc Refrigerators service will be maintained at regularly and complaints are resolved quickly


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4.3 CONCLUSIONS

The company having a strong foundation is capable of increasing its scale of operations. Due to

its strong financial position it can bring in a lot of technologies to improve customer services. The

company can also adopt the techniques of TQM and hence ensure

Providing quality products with quality services and improve their reputation in the

Market. They give more offers than the competitors (Pepsi) Refrigerators service will most

common problem in all company so service will maintained regularly and quickly as soon as

possible time. Service centres will be increased for cooling units


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4.4 BIBLIOGRAPHY

www.coca-cola.com

www.wikipedia.com
http://www.coca-cola.com/http://www.coca-cola.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.coca-cola.com/


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ANNEXURE

QUESTIONNAIRE

Personal Details

Outlet Name ___________________________ Owner Name

_________________________

Type of Channel

Grocery Convenience E&D

Location ____________________________ Mobile No _______________________

Questions

1. Which brand you have to be sales authorize?Pepsico Coca-cola Other

If other Please specify ________________

2. You have authorized brand cooler?Yes No

a) If yes mentionedPepsico Coca-cola Other

3. What is your cooler size?5 7 9 20 30

4. In your authorized brand which one to be sales high?PEPSICO COCA-COLA OTHERS

__ Pepsi __ Coke _______

__ 7up __ Sprite _______

__ Mirinda __ Fanta _______

__ Slice __ Mazza _______

__ Aquafina __ Kinley _______


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5. Rate the following FactorsWhich of the following factors affected your brand sales?

SAStrongly Agree AAgree NNeutral DADisagree SDAStrongly

DA

Factors SA A N DA SDA

Brand Popularity

Supply w/o Shortage

Offers

Dealer Reputation

6. Ranking the expecting qualities from dealer_______ Supply _______ Credit time _______ loyalty _______

service

Body Matter of organization study of coke

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