Deep

A

Summer Training Research Report On“PROCESS OF PAYMENT TO FREIGHT AND

ANALYSIS WITH DIFFERENT COST” OF

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITEDSUBMITTED TO:

Gautam Buddha Technical University, LucknowFor The Partial fulfillment of the requirement of

Masters of Business Administration(MBA-2011-2013)

UNDER THE SUPERVISION OF:Mr. Alok kumar

SUBMITTED BY:Deepak Kumar Singh

Roll No:1106170042

SHERWOOD COLLEGE OF MANAGEMENT, LUCKNOW25, SECTOR, INDIRA NAGER

LUCKNOW-226016

SHERWOOD COOLEGE OF MANAGEMENT

Approved by AICTE. Ministry of HRD, Govt. of India & Affiliated to G.B.

Technical

University, Lucknow (Under the Management of U.S. Srivastava Memorial

Education Society)

Sector-25, Indira Nagar, Lucknow – 226016. (U.P.) INDIA Ph.: (0522) 2716630

Fax: 0522-2716526, Phone: 0522-2716630,

Website: www.sherwoodindia.in, E-mail: [email protected]

Date: _________

CERTIFICATE

This is to certify that Mr. Deepak Kumar Singh of Master of Business

Administration session 2011-2013 has completed his Summer Training

on the Topic “PROCESS OF PAYMENT TO FREIGHT AND

ANALYSIS WITH DIFFERENT COST”

A partial fulfillment for award of Master of Business Administration.

The Summer Training Report submitted by him/her is a genuine work

done by him/her and the same is being submitted for evaluation.

Place: Lucknow (Name &Signature of the Internal Guide)

Date:

(Mr. Mayank Singh)

Prof Dr. Vivek Inder Kochher

Director

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ACKNOWLEDGEMENT

Report with such topic demands for some experienced knowledge, professional help

and encouragement from many quarters. I have deep regard for and gratefully thank

Mr. ALOK KUMAR (AREA SALES MANAGER) of AMRIT BOTTLERS

PVT. LTD. FAIZABAD. who have devoted their precious time, friendly assistance,

support and guidance for encouraging me to develop this project report. I would feel

pleasure if I could contribute even to the smallest extent in this regard. .

I extend my heartfelt gratitude to Mr. VIVEK INDER KOCHHER, DIRECTOR,

SHERWOOD COLLEGE OF MANAGEMENT, LUCKNOW invaluable

guidance and advice.

I extend my heartfelt gratitude to Mr. MAYANK SINGH, Faculty, SHERWOOD

COLLEGE OF MANAGEMENT, LUCKNOW invaluable guidance and advice,

full support and attention.

Last but not the least I must thank Almighty God for his inspiration and guidance and

my family members for their unquestioning encouragement without which this work

would not be possible.

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DECLARATION

“PROCESS OF PAYMENT TO FREIGHT AND ANALYSIS WITH

DIFFERENT COST” is an authenticated work carried out by me at AMRIT

BOTTLERS PVT. LTD. under the guidance of Mr Alok Kumar , I DEEPAK

KUMAR SINGH , hereby declare that the project work entitled under Mr. ALOK

KUMAR for the partial fulfillment of the award of the Degree of MBA and this

work has not been submitted for similar purpose anywhere else except to

SHERWOOD COLLEGE OF MANAGEMENT, LUCKNOW, approved by

Gautam Buddha Technical University(G.B.T U.)

Deepak kumar singh

Date:

Place:

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PREFACE

The MBA program is well structured and integrated course of business studies.

The main objective of practical training at MBA level is to develop skill in student by

supplement to the theoretical study of business management in general. Industrial

training helps to gain real life knowledge about the industrial environment and

business practices. The MBA program provides student with a fundamental

knowledge of business and organizational functions and activities, as well as an

exposure to strategic thinking of management.

In every professional course, training is an important factor. Professors give us

theoretical knowledge of various subjects in the college but we are practically

exposed of such subjects when we get the training in the organization. It is only the

training through which I come to know that what an industry is and how it works. I

can learn about various departmental operations being performed in the industry,

which would, in return, help me in the future when I will enter the practical

field.Training is an integral part of MBA and each and every student has to undergo

the training for eight weeks in a company and then prepare a project report on the

same after the completion of training.

During this whole training I got a lot of experience and came to know about the

management practices in real that how it differs from those of theoretical knowledge

and the practically in the real life.In today’s globalize world, where cutthroat

competition is prevailing in the market, theoretical knowledge is not sufficient. Beside

this one need to have practical knowledge would help an individual in his/her carrier

activities and it is true that “Experience is best teacher”

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TABLE OF CONTENTS

Sr.No . Title Page No.

(i) Institute’s Certificate (I)

(ii) Company’s certificate (II)

(iii) Acknowledgement (III)

(iv) Declaration (IV)

(v) Preface (V)

1. Introduction : 1-5

Objective of the study 5

2. Industry Profile 6-7

3. Company Profile 8-24

4. Trade Profile

25-74

5. Research Methodology 75-79

6. Findings 80-81

7. Limitations of the study 82- 88

8. Annexure 89-94

9. Suggestion 95

10. Conclusion 96

11. Bibliography 97

Questionnaires 88-90

Sample information 91-93

12. Bibliography 94-95

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EXECUTIVE SUMMARY

Doing this project was a great experience. The Coca-Cola in India has set up an

independent organizations which is H.C.C & B.C.C. with a capital of 350 U.S. $ each

by virtue of sellout decision of the passed managing director Mr. S.C.Agarwal.

Present soft drink boon in India was attributed to the legacy of Coca-Cola, which was

there in India till 1977. In today’s market the Coca-Cola hold a 62% market share that

appears to bear concentrated rush to beg a big share in the soft drink market.

Being a capital & biggest business center of India I choose the area of Delhi to

conduct my study and to get lot of exposure & various opportunities to meet different

kind of customers. This project has been under taken to study the availability of

complete range of Coca-Cola products to retail outlets.

To conduct the detail study of my project, I worked for a distributor in south Delhi.

During the training period I covered the whole market of center Delhi and gathered

the information from retail outlets regarding the availability of whole range of Coca-

Cola products. After getting the information, I list out those retail outlets and getting

the response regarding the various promotional schemes of coke and other.

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INTRODUCTION

In our present day economy, finance is defined as the provision of money at the time

when it is required. Every enterprise, whether big, medium or small, needs finance to

carry on its operations and to achieve its targets. In fact, finance is so indispensable

today what it is rightly said be the lifeblood of an enterprise. Without adequate

finance, no enterprise can possibly accomplish its objectives.

Finance is the lifeblood and nerve centre of a business, finance is very essential to

smooth running of the business. No business, whether big, medium or small can be

started without an adequate amount of finance. The most crucial decisions of firm are

those related to finance.

Financial management is concerned with procurement and use of funds. There are

various alternatives available for using business funds. The pros and cons of various

decisions have to look into before making a final selection There are many kinds of

financial management decisions that the firm makes in pursuit of maximizing

shareholder's wealth viz., kind of assets to be acquired, pattern of capitalization,

distribution of firm's income etc. We can classify these decisions into three majors

groups:

1. Investment decisions

2. Financing decisions

3. Dividend decisions

1. Investment decisions: it is related to the determination of the total amount of assets

to be held in the firm, the composition of these assets and the business risk

complexions of the firm as perceived by its investors. Since Funds are available in a

limited quantity, its proper utilization is to achieve the goal of wealth maximization.

The investment decision can be classified under two broad groups:-

Long term Investment

Short term Investment

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2. Financing decisions: once the firm has taken the investment decisions and

committed itself to new investments the needs for financial decisions are on going.

Hence a firm will be continuously planning for financial needs.

A finance manager has to select such sources of funds which will make optimum

capital structure. The important thing to be decided here is the preparation of various

sources in the overall capital mix of the firm. The debt-equity ratio should be fixed in

such a way that it helps in maximizing to profitability of the concern.

3. Dividend decision: the third major financial decision relates to the disbursement of

the profiles back to investors who supplied capitals to the firm the term dividend to

that past of profiles of a company which is distributed by it among it shareholder .it is

the reward of shareholder for investment made by them in the share capital of the

company.

In today’s complex economic environment, the measurement and presentation of

financial information is critical as far as allocation of economic resources is

concerned. The TRANSPORTATION COST is more important for the FMCG

Company. FMCG is basically for sales generating though manufacturing all Brands.

FMCG Company depends on Sales and the transportation cost is major part of its

expenses. All the expenses are fixed such as Administration cost, Advertisement cost,

Selling cost, Manufacturing cost etc.

Transportation costs are made on accrual basis.

Transportation costs are always change due to various reason such as increase in rate

of diesel & petrol(fuel), increase in rate of taxes, toll tax, change in contract with

Travel Agency, etc.

In this Project Report, an effort has been made to provide a COMPARATIVE

ANALYSIS OF BASIC CONCEPT OF TRANSPORTATION COST which directly

effect to the cost of company.

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The company has no its own carriers so the company heir the carrier agencies. The

company pays the freight to the carrier agencies. Some distributors have its own

vehicles. The carrier agencies are as follows:-

Ajay Roadways.

Mini Roadways

Murli Roadways

The distributors have its own vehicles are as follows:-

Maa Mansha cold Drinks

Vandana Agencies

Shiv Traders

Ashish Traders

Astha Enterprises

Baba Enterprises

ETC

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OBJECTIVE OF THE STUDY

1) To analyze the transportation cost of the company .

2) To analyses the satisfaction level of transporter towards company.

3) Determination of various strategies to reduce the freight charges.

4) Comparing the freight charges with other companies.

5) Comparing the freight charges with other cost of companies.

6) To adopt the suitable process of payment of freight of the company.

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INDUSTRIAL PROFILE

Present soft drink boon in India was attributed to the legacy of Coca Cola, which was

there in INDIA till 1977. In today’s market the Coca-Cola (Coke, Thumps Up, Fanta,

Limca, Sprite, Vanilla Coke, etc.) hold a 62% market share that appears to bear

concentrated rush to beg a big share in the soft drink market.

Various national & multinational firms are engaged in soft drink market due to

increase in its demand day by day. As far as INDIA soft drink market is concerned

there are major company’s engaged having a big completion to capture the soft drink

market are namely Coca-Cola & Pepsi. While Campa Cola & many local cola’s still

notice in the Indian Market.

Pepsi Cola attacked Coca-Cola before World War II. Coca Cola dominated the

American soft drink industry, Pepsi cola was a drink less to manufactures & with a

less satisfactory taste then Coke. Where as Coca-Cola major selling point was more

drink for the same price and Pepsi emphasized on advertising.

During World War II Pepsi & Coke both enjoyed increased sale. After the war Pepsi

sale was started to fall relatively to Coke, resulting the Coca-Cola had starting to click

the Market share. A number of factory contributed to Pepsi problem were poor image,

poor taskforce, poor quality control etc.

At that point Alfred.N. Steeler came to the presidency of Pepsi cola with a great

reputation for merchandising. He and his staff recognized that the main hope lay

transforming Pepsi from a cheap imitator of Coke into a class on soft drink

manufacturer.

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By 1955 all Pepsi’s major weakness had been overcome, resulting sales had climbed

substantially. These actions from 1955 to 1960 led to a considerable sales growth for

Pepsi.

In India another company engaged in soft drink market is Coca-Cola. It is one of the

most widely known, accepted and admired trademarks of the world. Coca-Cola was

there in India till 1977, when the Indian Government banned it due to strong

resentment against multinational company’s Coca-Cola was re-launched again in

India in September 1993 at “HATHRAS” near Agra. The India people welcomed the

come back of their most loved Cola in the country with great enthusiasm and vigor.

Coca-Cola marked its re-launching with acquiring five Parley drinks viz. Thumps

Up, Gold Spot, Limca, Citra, Maaza, Soda.

Soft drink industry is one of the fastest growing industries in India. The basic idea

behind the rapid growth of this industry is due to following reasons:

1. The great corporate war between Coke & Pepsi, who left no stone unturned,

for monopolizing the India Soft Drink market.

2. The basic ideology of these two giants is to promote soft drinks as a food

item in India hold.

3. The long hot summers in India have increased the consumption of soft

drinks.

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COMPANY PROFILE

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COMPANY PROFILE

Coca – Cola company is the global company and has completed 122 years of

consumer service with some of the world’s most widely recognized brands , the coca-

cola business in INDIA, as in each country where they operate, is a local business .

Their beverage is produced locally employing Indian citizen, their product range and

marketing reflects Indian taste and lifestyles.

After a 16 – year’s absence, Coca-Cola returned to India in 1993. The company

presence in India was cemented in November that year in a deal that gave Coca-Cola

ownership of the nation’s top soft drinks brands and bottling network .Coca-Cola

India has made significant investment to builds and continually improve its business

in India , including new production facilities , wastewater treatment plants , and

distribution system and marketing equipment .

Coca- cola business system directly employs approximately 6000 local people in

India. In fact, they indirectly create employment for more than 1, 25,000 people in

related industries through their vast procurement, supply and distribution systems.

Virtually all the goods and services required to be produced and marketed by coca-

cola locally are made in India.

The coca-cola system in India comprises 27 wholly owned companies -owned

bottling operations and another 17 franchise –owned bottling operations. A network

of 29 contracts –packers also manufactures a range of products for the company. The

complexity of the Indian market is reflected in the distribution fleet, which include 10

tones trucks, open bay three wheelers that can navigate the narrow alleyways of

Indian cities, and trademark tricycles and pushcarts.

One wrong move can lead to dramatic changes in market share. The pricing is quite

essential in the business and any minor change can lead to huge changes in fortunes.

Advertising here is conventional, not in content but in terms of time frames.

Everything boils down to advertising and distribution strategies , its plan or lack of

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them for the non-cola segment , plan of attack in rural markets , and its profitability

and growth rates.

Soft drinks have fairly high elasticity of demand, which ensures that producers must

strike a fine balance between prices and sales volumes. Coke has decided to peg

prices similar to other products and tries to gain market share through vigorous

promotional activities.

The infrastructural cost are high but you have to rework your other costs like credits

and discounts and bring them down , which is exactly what it is doing at the moments.

Coke sells mostly through fat dealers who sell the products of both companies and

they undercut all the time. There are plenty of innovations possible in distribution that

can cut costs. For the same no of accounts in the north you require more people,

vehicles, and basically more expenditure. Therefore it makes sense to pre-sell or in

other words, book orders and then sell this reduces recurring costs and revenue

expenditure comes down.

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Dr. John Stith Pemberton for the first time produced the syrup for Coca-Cola

on May 8, 1886. Coca-Cola originated as a soda fountain beverage in 1886 selling 5

cents for a glass. Early growth was impressive, but it was only when a strong bottling

system developed that Coca-Cola became the world famous brand it is today.

The Coca-Cola offers more than 400 brands in over 200 countries. From Inca

Kola, a soft drink found in north & south America and Samurai, an energy drink

available in Asia, to Vita, an African juice drink and Bon Aqua, a water found in 4

continents. The Coca-Cola Company is dedicated to not only producing quality

products, but satisfying the thirst for opportunity, education and economic

development across the Globe. Our product variety spans the Globe.

BRIEF HISTORY OF

COCA-COLA

is the biggest and the most popular selling drink in history, as well as

the best known brand in the world. The company was created on May 8th, 1886 by Dr.

John Styth Pemberton in Atlanta .He made world’s favorite soft drink by mixing

carbonated water with caramel coloured syrup. The name & trademark

was carried by Pemberton’s partner Frank M. Robinson.

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As a G. Candler acquired in 1891 by an investment of $ 2300. He was

druggist & businessman in Atlanta.

Candler sold out the company in1919 to Atlanta banker Ernest Woodruff. His son

Robert Woodruff was elected as president in 1923.

In 1967, a Minute Maid Company was formed which added fruit juice concentrates to

portfolio. The Coca-Cola was acquired by Columbia Pictures & Belmont Spring

Water Company in 1982.

In 1989, Belmont Spring Water was sold and its stake in Columbia Pictures

Entertainment Inc.

A joint venture Company was formed in 1991 with the name of Nestle SA to

manufacture market & distribute Nestea & Nescafe.

After sometime, moved from being a carbonated soft drink to a total

beverage company by showing its presence in Fruit Juice, Coffee, and Health Drink &

Water.

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HISTORY OF BOTTLING

Coca –Cola originated as a soda fountain beverage in 1886 selling for 5 cents a

glass. Early growth was impressive, but it was only when a strong bottling system

develop that Coca-Cola became the world famous brand.

1894 … A modest start for a bold idea

In a candy store Vicksburg, Mississippi, brisk sales of the new fountain beverage

called Coca-Cola impressed the store’s owner, Joseph A Biedenharn. He began

bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson.

Biedenharn sent a case of Asa Griggs Candler, who owned the company. Candler

thanked him but took no action. One of his nephews already had urged that Coca-Cola

be bottled, but Candler focused on fountain sale.

1899…The first bottling agreement

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Two young attorneys from Chattanooga, Tennessee believed they could build a

business around bottling Coca-Cola. In a meeting with Candler, Benjamin F Thomas

and Joseph B whitehead obtained exclusive rights to bottle Coca-Cola across most of

the United States-for the sum of one dollar. A third Chattanooga lawyer, John T

Lupton, soon joined their ventures.

1900-1909…Rapid growth

The three pioneered bottles divided the countries into territories and bottling rights to

local entrepreneurs. Their efforts were boosted by major progress in bottling

technology, which improved efficiency and product quality. By 1909, nearly 400

Coca-Cola bottling plants were operating most of them family owned business. Some

were open only during hot-weather months when demand was high.

1916…Birth of the Contour Bottle

Bottles worried that Coca-Cola’s straight sided bottle was easily confused with

imitators. A group representing the company and bottlers asked glass manufacturers

to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre

Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few

packages ever granted trademark status by the U.S. Patent Office. Today, it’s one of

the most recognized icons in the world even in the dark!

1920s…Bottling overtakes fountain sales

As the 1920s dawned, more than 1000 Coca-Cola bottlers were operating in the U.S.

Their ideas and zeal fueled steady growth. Six bottle cartons were huge hit starting in

1923. A few years later, open-top metal cooler became the fore runners of automated

vending machines. By the end of the 1920s, bottle sales of the Coca-Cola exceeded

fountain sales.

1920s and ‘30s…International expansion

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Led by Robert W. woodruff, chief executive officer and chairman of the board, the

Company began major push to establish bottling operations outside the U.S. Plants

were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South

Africa. By the time World War IInd began, Coca-Cola was being bottled in 44

countries.

1940s…Post-war growth

During war, 64 bottling plants were set up around the world to supply the troops. This

followed an urgent request for bottling equipment and materials from General

Eisenhower’s base in North Africa. Many of these war time plants were later

converted to civilian use, permanently enlarging the bottling system and accelerating

the growth of the company’s world wide business.

1950s…Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type the

traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26-

ounce versions. Cans were also introduced, becoming generally available in 1960.

1960s…New brands introduced

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and

Mello Yello were in the 1970s. The 1980s brought diet Coke and Cherry Coke,

followed by Fruitopia in 1990s. Today scores of the other brands are offered to meet

consumer preferences in the local markets around the world.

1970s and ‘80s…consolidation to serve customers

As technology led to global economy, retail customers of the Coca-Cola Company

merged and evolved into bottlers consolidated to better serve giant international

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customers. The company encouraged and invested in a no of bottler consolidation to

assure that its largest bottling partners would have capacity to lead the system in

working with global retailers.

1990s…New and growing markets

Political and economic changes opened vast markets that were closed or

underdeveloped for decades. After the fall of the Berlin Wall, the company invested

heavily to build plants in Eastern Europe. As the century closed, More than $1.5

billion was committed to new bottling facilities in Africa.

21st century…Think local, act local

The Coca-Cola bottling system grew up with roots deeply planted in local

communities. This heritage serves the company well today as consumers seek brands

that honors local identity and distinctiveness of the local markets. As was true a

century ago, strong locally based relationship between Coca-Cola bottlers, customers

and communities are the foundation on which the entire business grows.

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BUSINESS OVERVIEW:

Introduction:

Coca-Cola, the world’s most famous brand completing 118th year of its existence on

8th May this year. Today the Company is an unquestionable leader in the world

business of non-alcoholic beverages. Coca-Cola is the world largest soft-drink and

arguably the most successful product ever launched in the history of the commerce.

More than one billion servings of the Coca-Cola products are consumed everyday

around the world in more than 200 countries.

In India, Coca-Cola operates through the Coca-Cola India Division Office situated at

Gurgaon near New Delhi. Hindustan Coca-Cola Beverages Private Ltd is fully owned

subsidiary of the Coca-Cola India which runs a number of bottling plants all over

India.

Hindustan Coca-Cola Beverage Private Ltd, Varanasi is one of the key units in East

U.P. This unit is situated at approximately 18-km from the city and 40-km from the

nearest airport of Varanasi The unit has single bottling lines of 600 bottles per minute

capacity. Almost all brands of Coca-Cola Company, prominent amongst them, Coca-

Cola, Thumps up, Limca, Fanta, Sprite, Kinley Soda etc., are manufactured here. The

sizes of the packaging vary from 200ml, 300ml to 1-litre capacity. Returnable glass

23

bottle (RGB) is the only package used. Glass bottles are handled in plastic reusable

crates. Thus there is no any significant environmental impact because of packaging.

The raw materials used are Water, Sugar, Concentrate and Carbon Di-Oxide.

Concentrate plant near Pune supplies concentrate to this bottling unit.

The wastes generated during the manufacturing process are mainly waste water and

non-hazardous solid waste in saleable and non-saleable category. Saleable waste

includes broken glass, plastics, papers, gunny bags, metal scrap and other

miscellaneous waste.

Obviously the saleable waste is recycled or reused as raw material to businesses and

industrial activities and has no adverse environmental impact. Non-saleable waste

consists of biological ETP Sludge, used carbon, garbage and canteen waste etc. The

quality of this non-saleable solid waste is very little as compared to the total waste

and the waste is non-hazardous in character. No on-site burial or burning of waste is

carried out.

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Manufacturing process:

We at Coca-Cola are committed to manufacture our products with utmost care and

with quality at top priority which makes it the world leader in the soft drink industry.

Following is the overview of the stringent

Processes adopted in manufacturing before our quality product reaches finally to our

proud consumers.

WATER TREATMENT:

We at HCCBPL Varanasi follow a batch treatment which includes coagulation &

flocculation. The method ensures disinfection and settling of all macro impurities and

thereafter it pass to sand, carbon filters to remove off odour ,off colour, off taste, and

thus it is strictly bought in line with the WHO requirements. We are also using state

of art –micron filtration process where the water is filtered up to the extent of 1

micron before it is fed to the process.

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This extensive treatment of water under strict monitoring and sampling for quality

leads to pure hygienic water with the highest quality meeting the Coca-Cola

standards.

SYRUP PREPARATION:

Coca-Cola uses highest quality of sugar which is controlled and ensured by its

stringent pre-laid standards, which serves as the strict criteria before acceptance of a

lot. To ensure high quality of syrup, it is subjected to hot treatment wherein it is given

a contact time with hyflo and carbon at elevated temperature. It is then passed through

a filter press which removes the carbon particles and other impurities before it

declared fit for concentrate mixing. All this process takes place under the strict vigil

by the quality department which maintains the appropriate records of

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the numerous tests carried out in the entire process which makes it a foolproof

process.

In the ready syrup tank the pre-decided quantity of concentrate is mixed to the simple

syrup in very strict hygienic condition to yield final syrup. The entire syrup

manufacturing area is maintained under a constant positive pressure which rules out

the possibility of any external particles entering into the process room.

CONTAINER WASHING:

Container has been identified as one of the major critical control point in the entire

manufacturing process & that’s the reason that company has laid some of the very

stringent and foolproof systems which ensures Coca-Cola product to be of the highest

quality and reflects our commitment towards delivering the best in class product to

the consumers.

The bottles received from the market are loaded on the conveyor by the uncasing

machine and the arrays of the unwashed bottles passes through the four pre-wash

inspections stations which ensures removal of rusty neck bottles, excessively dirty

bottles, bottles carrying foreign matter, foreign bottles. And thus the good bottles pass

into the bottle washing machine which uses intensive mechanical and chemical

processes to clean and disinfect the bottles thoroughly and ensures the bottles to be

ready for filling. However as an additional safety, there is again a post wash

inspection station comprising of 4 sub-stations, which ensures removal of the chip

necked bottles and suspected bottles from the lot. Thus the bottles are subjected to

series of stringent inspections before it is fed to the filler for filling.

MIXING, PROPORTIONING:

Proportioning is basically a process where ready syrup is diluted in a predetermined

fixed proportion with water and carbonated concentrate in to beverage conforming

strictly to company’s norms and specifications. It is carried out by an Italian Machine-

MOJONNIER.

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FILLING & CROWNING:

The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles

through a rotator machine named FILLER. The bottles are immediately crowned by

crowner (adjacent to the filler) and thereafter bottles passes through the date coding

machine which enable the consumer to be 100 percent sure of consuming a perfectly

safe and fresh product.

FINAL INSPECTION:

After date coding, there is once again a final inspection station where light inspectors

all low or high filled bottles and permit only the saleable product to pass through for

casing to the caser machine.

MANAGING THE WASTE WATER:

Production lines maintain the waste water from the bottle washers, Syrup and Filler

rooms. Entire waste water generated is treated at Waste Water Treatment Plant and

discharged through a 800 meters long pipeline specially laid to discharge the treated

waste water away from inhabited areas. Part of this water is being used for gardening

purpose within the plant premises.

MARKET and CUSTOMERS:

Once the finished product is ready, it is transported to the distribution centers and then

to retail outlets by way of route trucks. The consumer buys the soft drink from the

retailer outlets. The empty bottles are simultaneously collected by the distribution

channels at the time of dispensing the finished products.

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SUPPLIERS AND OTHER BUSINESS PARTNER:

Other than water and concentrate, bottling operation require sugar, CO2, bottles,

crates and other miscellaneous materials. The Coca-Cola India division has a Supplier

authorization program where suppliers are authorized based on a defined criterion.

Environmental considerations are amongst the critical of these criterions.

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EMPLOYEES, PLANTS & MACHINERY:

The no of total East UP unit employees is approximately 98 & in summer season,

which is a peak season for sale of soft drinks, the plant works for three shift operation

round the clock.

The overall education level of the employees is good and they obviously have a good

expertise in water treatment and purification processes. Extensive in-house training

programs are conducted to maintain the competency of the manpower in respective

areas. The plant and machinery consists of state of art bottling machinery and test

equipment to get consistent quality product at the optimum usage of raw materials.

The plant also has an extensive quality test laboratory with equipment like

spectrophotometer, density meter, micro lab etc. to conduct on the spot tests at various

stages of production.

A typical bottling line will consist of uncaser- pre wash inspection station –conveyers-

bottle washer-post wash bottle inspection station—filler-final light inspection station-

conveyor-and caser.

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TRADE PROFILE

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COKE PENETRATION IN RURAL MARKET

In urban areas, the 8 to 10 percent of total sales of coke is through Area Market

Contractors (AMC) who is equivalent to big retailers and other outlets. In the village

areas .coke uses so called distributors for the sales. A striking feature in the logistics

of Coke is that the AMC’s supply material directly using trucks but in case of

inaccessibility to retail outlets due to location-constraints, supply is made through

auto rickshaws also.

The truck also gives the company permanent hoarding space on their sides and backs.

Also, as the industry competition is strong dealer push at the point of purchase is an

important factor for sales. The retailer often can play manufactures against each other

to obtain favorable deals. To avoid this situation coke incorporates a high degree of

standardization with respect to the price waterfall elements (the various types of

discount offered), through there are differences in the timing. Innovation in

availability is something that coke can lay claim to. Coke introduced the pushcart.

Cok3e is busy putting in place infrastructure to hit villages with its small 200 ml

bottle, priced aggressively at Rs. 5. With 200 ml it has larger market. It is exploding

this market with low unit price packs and pushing growth in home consumption

through the PET bottles. Coke’s game plan is to have high volume, low margin

business. The infrastructure costs will be high but they have to rework their other

costs coke credits and discounts and bring them down.

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PRODUCTS:

Leading Indian brands Thumps Up, Limca and Maaza joins the company’s

international family of brands including Coca – cola, diet coke, sprite and

Fanta, plus the Schweppes product range.

A Kinley water brand was launched in 2000.

In 2001, Coke’s energy drinks shock and first powdered concentrate, Sun Fill,

and hit the market.

In 2004, company launched its ice creamy thanda products, vanilla Coke.

QUALITY:

In everything Coke do from the selection of ingredients to the production of

beverages and their delivery to the marketplace, they use their specialized quality

management system. The coca-cola quality system ensures that they are offering

consumers only the highest quality products. They monitor their customers and

consumer feedback and they are in trade monitoring programs, and this information

enables them to continuously improve their already demanding systems.

ADVERTISING:

Advertising has played an important role in the success of products since first

newspaper ad in 1886, which read “Coca-Cola Delicious! Refreshing! Exhilarating!

Invigorating!” The company uses adver4tising to trigger desire as often and in as

many ways as possible. Through out the years, slogans or coca-cola have been

memorable .Here are some highlights:

2000-Coca-Cola Enjoy

1993-Always Coca-Cola

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1990- Can’t Beat the Real Thing

1989-Can’t Beat the Feeling

1986-Red,White and You

1982-Coke Is It

1976-Coke Adds Life

1971-I’d Like to Buy the World a Coke

1969-It’s the Real Thing

1963-Things Go Better With Coke

1959-Be really Refreshed

1944-Global High Sign

1942-It’s the Real Thing

1936-It’s the Refreshing thing to do

1929-The Pause That Refreshes.

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MILESTONES TO COKE

35

Promotional poster for Thailand's Coke PiBig Campaign

36

Neon Coke Sign – Atlanta

37

WORLD OF COKE

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BRAND INFORMATION:

COCA-COLA:-

It is the world’s favorite drink and most valuable brand. The most

recognizable word across the world after OK. Coca-Cola has truly remarkable

heritage. From the humble beginning in 1886, it is now the flagship brand of the

largest manufacturer, marketer and distributor of non-alcoholic beverages in the world

in India; Coca-Cola was the leading soft drink till 1977 when govt. 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 remote and inaccessible parts of the nation.

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THUMPS UP:-

Strong cola taste for exciting personality. Thumps Up is a leading carbonated

soft drink and most trusted soft-drink brand in India .Originally introduced in 1977 by

Parle and later on was acquired by the Coca-Cola Company in 1993.

Thumps Up is known for its strong fizzy taste and its confident, mature and uniquely

masculine attitude. This brand clearly seeks to separate the men from the boys.

LIMCA:-

Limca is the drinks that can cast a tangy refreshing spell on anyone, anywhere. Born

in 1971, Limca has been the original thirst choice, of millions of consumers for over

three decades.

The brand has been displaying healthy volume growth year on year and Limca

continues to be the leading flavors soft drink in the country with a market share of

12%. The success formula of Limca lies in its sharp fizz and lemony bite combined

with the single minded positioning of the brand as the ultimate refresher has

continuously strengthened the brand franchise. Limca energizes refreshes and

transforms. Dive into the zingy refreshment of Limca and walk away a new person.

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FANTA:-

Internationally, Fanta- the orange drink of 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 colour , tempting

taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus

encouraging one to indulge in the moment. This positive imagery is associated with

happy, cheerful and special times with friends. Fanta advertising over the time has the

highest association with fun and friends that has reflected through past TV

commercials like Misty Ka Apna Taste, Bajao Masti Ki Ghanti , Dil Khol Ke, to the

recent commercial “ Kya Dhakkan Hain”. Rani Mukerjee, as the brand ambassador

for Fanta is the perfect embodiment of brand character vies fun, vivacious and

energetic. Fanta is available around the country in 200 ml, 300 ml, 600 ml, 1.5 liters

and 330 ml cans.

SPRITE:-

World wide sprite is ranked as the No. 4 soft drink and is sold in more than

190 countries. In India, Sprite was launched in year 1999 and today it has grown to be

the one of the fastest growing soft drinks, leading the clear lime category.

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Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth,

Sprite has stood for straightforward and honest attitude. Its clear crisp refreshing taste

encourages the today’s youth to trust their instincts, influence them to be true to who

they are and to obey their thirst.

Sprite advertising has always been memorable with very high recall value, especially

amongst the youth. With popular TV commercial like Lisa Ray, Aish, Market

research and its latest take on its competitor- ‘ I don’t want to Do’ Sprite has stood in

the minds of youth as “Sprite Bujhaye Only Pyaas , Baki All Bakwaas” , which has

become recognizable around the country. Sprite is available around the country in

200ml, 300 ml, 500 ml + 100 ml free, 1.5 ltr, 2 ltr, 2.25 ltr and 330 ml cans.

DIET COKE:-

Diet Coke was born in 1982 and quickly become the No.1 sugar free drink in

diet-conscious America. Known as Diet Coke in the U.S., Canada, Australia and

Great Britain, and as Coca-Cola light in other

Countries, its now the No.3 soft drinks in the world. It’s the drink for people who

want no calories, but plenty of taste. Ad campaign around the world for Diet Coke

shares a playful, sophisticated and fun-loving attitude. Looking Good and Tasting

Great!

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MAAZA:-

Maaza was launched in 1976. Here was a drink that offered the same real taste

of fruit juices and was available throughout the year.

In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the

fruit drink category. Over the years, brand has become synonymous with Mango. This

has been the result of such successful campaigns like “Taaza Mango, Maaza Mango”

and Botal mein Aam, Maaza hain Naam”. Consumer regards Maaza as a wholesome,

natural, fun drink, which delivers the real experience of fruit.

The current advertising of Maaza positions it as an enabler of fun friendship moments

between moms and kids as moms trust the brand and the kids loves its taste. The

campaign builds on the existing equity of the brand and delivers a relevant emotional

benefit to the moms rightly captured in the tagline “Yaari Dosti Taaza Maaza”

It is available in SKUs of 200 ml RGB, 250 ml RGB, 125ml tetrapak and 200ml Tetra

pack.

VANILLA COKE:-

Vanilla Coke was launched in2002 in North America and subsequently in

various other markets across the world and met with immense success. The idea of the

refreshment of Coca-Cola with a hint of Vanilla was found very appealing when

tested in India and we launched Vanilla Coke in April 2

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The “Thanda Matlab Coca-Cola” campaign which was launched in 2002, had made

Coca-Cola India’s favorite so0ft drink and this helped launched vanilla coke as ‘Ice –

Creamy Thanda’, thereby making the new brand something familiar and comfortable

with that consumer.

Vanilla Coke was launched with high profile TV commercial featuring teen

heartthrob VIVEK OBEROI in remarkably new and different avatar. Directed by Ram

Madhvani, the TVC has become a rage in the country with people from various walks

of life using the term ‘WAKAW’ in various contexts. The Bappi Lahiri Track has also

become very popular.

The brand is currently available in 200 ml RGB/ 300ml RGB, 500 ml PET and 300 ml

cans.

SUNFILL POWDER DRINK:-

Sun fill powder drink has been developed locally based on the Indian

consumer preferences. We have kept in mind the Indian palate

(Taste/Sweetness/Sourness/Orange flavor). Sun fill is also present in other countries,

either in the form of fruit juice based drink, or in the powdered concentrate form in

countries like Indonesia, Sri Lanka, and Bangladesh. It has been developed using the

Coca-Cola Company’s expertise in the beverage business.

Sun fill regular priced at Rs. 2.50 per serves gives the consumer a world-class

product, which not only is convenient, but also has a very attractive price. The product

is available in single serve (23gms) & multi serve (200gms) and in 4 flavors –

Orange, Mango, Lemon and Pineapple.

Sun fill anand was launched with strategy cater to SEC C, D, E and rural India. It is a

non – sugared concentrate, which provide one serving at 50 paisa only. Anand has

also been launched in multilevel pack, which provides 22 glasses only at Rs 10.

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The advertising campaign emanates from the winning product and brand concept and

is based on extensive consumer research. Sun fill is bounty in the hands of the

housewife. It is ref

GEORGIA COFFEE:-

Coffee the Way Japan Likes It

It is a ready to serve, canned coffee that’s the best selling non-carbonated soft

drink in Japan. Georgia’s flavors blends are favorite of hard –working people.

Georgia can be served at room temperature, cold or hot. At the 1998 Olympic Winter

Games held in Nagano, Georgia became the first hot soft drink served at an Olympic

Games. Some of the Japan’s top comedians are featured in the series of comic

episodes that make up the drink’s current television ads.

Georgia coffee is available in Original, Mocha Kilimanjaro, Emerald, Mountain

Blend and a variety of other delicious flavors that are introduced from time to time.

POSITIONING/STANDING IN THE MARKET

PRODUCT:-

Coca-Cola returned to India in 1993and over the past ten years has captured the

imagination of the nation building strong association with cricket, the thriving cinema industry,

music etc. coca-cola has been strongly associated with cricket sponsoring the world cup in1996

and various tournaments, including the coca-cola cup in Sharjah in the late nineties. Coca-

Cola’s advertising campaigns “JO CHAHO HO JAYE” and “LIFE HO TO AISI “were very

popular and had entered the youth vocabulary. In 2002, coca-cola launched the campaign

“THANDA MATLAB COCA-COLA” which sky- rocketed the brand to make it India’s

favorite soft drink brand. In 2003, Coke was available for just Rs. 5 across the country and this

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pricing initiative together with improved distribution ensured that all brands in the portfolio

grew leaps and bounds.

BRAND AMBASSADORS

Coca-Cola had signed on various celebrities including movie stars such as

Imran Khan, cricketers such as Sachin Tendulkar, Saurav Gangualy, southern

celebrities like Vihay in the past and today its brand ambassadors are Aamir Khan ,

Aishwarya Rai , Akshay Kumar , Vivek Oberai , Rani mukherjee , Bipasha Basu ,

Sonali Bendre and Cricketer Virendar Sehwag .

46

47

LEADERSHIP AT

COCA-COLA

“There’s never been a better time to be the part of The Coca-Cola Company. Our

people are dedicated to strengthening relationship with stake holders and communities

everywhere.”

48

Mr. Isdell leads the Coca-Cola Company into the new century with a firm

commitment to the values and spirit of the world’s greatest brand. Under Isdell’s

leadership, the Coca-Cola Company is positioned for growth, guided by the mission

to provide the branded beverage that refresh people around the world, anywhere,

anytime, everyday. By making key decision making closer to the local markets, it has

spurred innovation, accelerated growth and fostered deeper connection to the

consumer. Simply put they are closure than over to us.

A talented and highly experienced world wide management team coordinates the new,

nimble and entrepreneurial network .The local strategy enables them to listen to all

the voices around the world asking for beverages that span the entire spectrum of

tastes and occasions.

The company quotes “what people want in the beverage is reflection of who they are,

where they live, who they work and play, and how they relax and recharge. Whether

you are a student in the United States enjoying a refreshing Coca-Cola, women in

Italy taking a tea break, a child in Peru is asking for a juice drink, or couple in Korea

buying bottled water after a run together, we are there for you.”

The company is determined not only to make great drinks, but also to contribute to

communities around the world through the commitments to the education, health,

wellness, and diversity.

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It strives be good neighbors, consistently shaping its business decision to improve the

quality of life in the communities in which it does business. It is a special thing to

have billions of friends around the world, and the company never forgets it.

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MISSION

Our mission is to refresh the world in mind, body & spirit and to inspire moment of

optimism through our brand and our action.

Create consumer products, services & communications, customer service and bottling

system strategies, processes and tools in order to create competitive advantage &

deliver superior value to:

Consumers as a superior beverage experience.

Consumers as an opportunity to grow profits through the use of finished drink.

Bottlers as an opportunity to grow profit and volume.

TCCC as a trade mark enhancement & positive economic value added.

Suppliers as an opportunity to make reasonable profits when creating real

value added in an environment of system-wide teamwork, flexible business

system & continuous improvement.

CCI Associates as superior career opportunity.

Indian society in the form of a contribution to economic and socio

development.

eKOsystem: The Coca-Cola Environmental Management System. The Coca-Cola

Company has 78 manufacturing location across 24 states of the country. The

Company has one single environmental system, eKO system,

implemented at all its operations in 202 countries

across the world. The eKO system is a tool that integrates

environment management with business planning

cycle. The eKO system primarily comprises of two

main facets namely:

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(i) Environment and

(ii) E Safety and loss Prevention (SLP)

Both the facets are aligned with international management system standards, ISO

14001 for Environment Management and OSHAS 18001 for Safety Management. As

on June 2005, 33 manufacturing units are certified to ISO 14001 and 8 units are

certified to OSHAS 18001 standards. Company owned bottling operations at Jaipur

received prestigious Golden Peacock Award on Environment Management for 2005.

The same award was also received by the company operations at Dasna, Ameenpur,

and Baddi for 2004, 2003 and 2002 respectively. The awards are conferred by

Institute of Directors in association with World Environment Foundation (WEF) in

recognition of effective implementation of Environmental and Quality Management

System (EMS) by these units.

Some of the Prime Environmental considerations followed in business decision are:

1. Environmental due diligence before acquiring land.

2. Environmental impact assessment before commencing operations.

3. Ground water and environmental surveys before selecting sites.

4. Diligent compliance with all regulatory environmental requirements.

5. Ban on purchase of refrigeration equipment containing CFCs (known to be

Ozone depleting).

6. Installation of effluent treatment plant at each manufacturing locations.

7. Separate collection and treatment of domestic and industrial effluent as per

Company OR Local Standard.

8. Separate discharge of industrial, domestic and storm water to prevent storm

water pollution.

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COMPANY POLICIES

The Coca-Cola eKO system are governed by five

major policies that affirm the environmental

responsibilities of The Coca-Cola Company and

serve as guidelines for our business partners around

the world. Each of these policies is supported by

specific requirements and practices that govern our

daily operations and are fundamental to achieving results consistent with

environmental leadership.

Our Five Policies are:

1. COMMITMENT

2. COMPLIANCE & BEYOND

3. MINIMIZING IMPACT, MAXIMIZING OPPURTUNITY

4. ACCOUNTABILITY

5. CITIZENSHIP

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SWOT ANALYSIS

Coca-Cola Company is one of the leading MNC in the world. It has made a

remarkable growth since it origin and it has got a good potential in spite of various

hurdles coming its way. By going through its SWOT analysis we can know much

more about the company

STRENGTH:

The company has got various strengths, which leads the company be a market leader.

Some of the strengths listed below:

A) Strong product line:

The company has got various fast moving products which are going great job in the

market. These soft drinks not only quench thirst but also refresh everyone it touches.

One of the strong brands of the company is Thumps Up, which specially doing well in

the Indian market. It has captured one of the major shares of the soft drink market.

B.) Advertising:

Advertising plays a major in promoting sales of the product. The company has got

one of the best advertising strategies. Appointing film actors, as the brand

ambassadors, makes a great impact on the mind of the customers. The company

should try to launch more and more advertising and sales campaigns to promote sales

to the maximum

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WEAKNESS:

As no man in this world is a complete man and so are the companies. Every company

has got weakness so as Coca-Cola Company too. Some of the weaknesses which the

company should overcome are as follows:

A.) Distribution network:

The company has got an average distribution network this is one of the reason why

the company fails to fulfill the demand of the customer at time of peak seasons. It

must go for some more bottling plants and should opt for better distribution channels

to increase the sales in the best possible manner.

B.) Pricing strategy:

The company has got a pricing strategy as there is no certainty of rising or fall of

price during the peak season. This also hamper the sales of the company as the

retailers and distributor get dilemma whether to place the next order or not as increase

or decrease in price may hamper their profit margin and blockage of the goods.

OPPORTUNITIES:

Instead of weakness and threats the company the company has got various

opportunities to which it has to go for. The opportunities for the company are as

follows:

A.) Large Market:

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As India is said to be one of the biggest market in the world, thus the company

survive for long and can expands to its length and width. Still there are thousand of

villages which have not been covered by soft drink companies. If the company targets

the rural market it can easily make large profits and thus can also satisfy its aim to

benefit and refresh the whole nation.

B.)Launch of other brands:

Coca- Cola Company has got more than 300 brands which is running successfully

over the world. Thus it can launch some more brands in the country, after studying the

demand and desire of the people and can deep its roots by winning their minds and

hearts.

THREATS:

Some of the threats which the can face:

(A) Competitors

One of the strong competitors of the company is Pepsi Co. thus it has to formulate

such strategies which make it to remain one step ahead and give a strong competition

to the competitors.

Some of the other competitor in the path of growth to the company is the local soft

drinks manufacturers who play an active part at the time of peak season. The other

local refreshers like Nimbu Pani, lassi, fruit juice etc. which hampers the sales of the

company.

(B) Govt. Policies

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The policies of the government also play a major role for the company. The company

can not perform well or in its own way by violating the rules of the government. Thus

if the government formulates some policies which creates hindrances in the working

of the company it will prove to be one of the major threats.

MEANING OF TRANSPORTATION

COST Transportation cost means carrying cost which is huge expensive for company.

Transportation refers to the movement of product from one location to another, as it

makes it way from the beginning of the supply chain to the hands of the customer’s

hands. It plays a key role in every supply chain because products are rarely produced

and consumed at the same location. It is a significant cost most supply chains incur.

With the growth of e- commerce and the associated home delivery of products,

transportation costs have become even more significant in retailing. From the book

industry to the food industry, online firms are delivering products in a small number

to the customers instead of delivering in huge numbers to the retail stores. As the

result transportation cost is larger in fraction of the delivered cost of products sold

online.

Factors affecting carrier decisions

A carrier’s goal is to make investment decisions and set operating policies that

maximize the return on its assets. A carrier such as an airline, railroad or trucking

company must account for the following costs while investing in assets or setting

pricing and operating policies:

1. Vehicle related costs – This is the cost a carrier incurs for the purchase or the

lease of the vehicle used to transport goods. The vehicle related cost is

incurred whether the vehicle is used or not and is considered fixed for a short

term operational decisions by the carrier. While making long term strategic

decisions or medium term planning decisions, these costs are variable and the

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number of vehicles purchased or leased is one of the choices that a carrier

makes. The vehicle related cost is proportional to the number of vehicles

leased or purchased.

2. Fixed operating cost – This includes any cost associated with the terminals,

airport gates, and labour that are incurred whether vehicles are used or not.

Examples include the fixed cost of a trucking terminal facility. If drivers were

paid independent for their travel schedule, their salary would also be included

in this category. For operational decisions, these costs are fixed. For planning

and strategic decisions involving the location and size of the facilities, these

costs are variable. The fixed operating cost is generally proportional to the size

of operating facility.

3. Trip related cost – This cost is incurred each time a vehicle leaves on a trip

and includes the price of labour and fuel. The trip related costs depends on the

length and duration of the trip but is independent of the quantity shipped. This

is considered variable while making strategic or planning decisions. The cost

is also considered variable while making operational decisions that affect the

length and duration of the trip.

4. Quality related cost – This category includes loading/unloading costs and a

portion of the fuel cost that varies with the quantities being transported. These

costs are generally variable in all transportation decisions unless labor used for

loading and unloading is fixed.

5. Overhead costs – This category includes the cost of planning and scheduling a

transportation network as well as any investment in information technology.

When a truck company invests in routing software that allows a manager to

device good delivery routes, the investment in the software and its operation is

included in the overheads.

A large portion of the carrier’s cost is independent of the quantity being carried on the

truck. It does however depend on the utilization and that is affected by routing and

scheduling of vehicles. A carrier’s decisions are also effected by the responsiveness it

seeks to provide its target segment and the prices that the market will bear.

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PROCESS OF GIVING TRAVELLING

COST

Before giving the traveling cost the company has some format which has to fulfill

both by the Traveling Agencies as well as the company. One form is given by

company and one form form is given by Traveling Agent. In this form following

things are required:-

BSR (INVOICE NO):-

DPG (INVOICE NO):-Duty Paid Goods

ERA NO.:- Empty Received advice

TRANSPORT SLIP NO.:-

TRANSPORT CONFIRMATION NO:-.

DATE:-

NAME OF DISTRIBUTORS:-

NAME OF TRANSPORTER:-

TRUCK NO:-

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DETAIL OF FULL SENT :-

DETAIL OD EMPTY SENT :-

DETAIL OF ALL KIND OF DAMAGES:-

FRA:-Fulls Received Advice

SIGNATURE OF FOLLOWING:-

PREPARED BY:- Shipping Executive

CHECKED BY:- Sr. Shipping Executive

APPROVED BY:- Shipping Manager

Before giving the traveling cost the company has to maintain all the data in two

software one is Excel sheet and other is Jaguar which is company’s own software.

Invoice no are unique no so there is no chance of double tracing and it has to link with

Jaguar so there is no chance of default. There are two rates of traveling first one is LP

rate and other is DCM rate. DCM rates stands for 300-350 cases, LP rate stands for

500-550 cases.

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PROCESS OF GIVING TRANSPORTATION

COST

Finance Department gives order to Shipping Department for loading according to the

demand of distributors. Shipping Department load the truck with fulls and the

transporter transport the fulls to the distributors. Distributors unload fulls and load

empties. Then the transporter transport empties to the Shipping Departments. The

transporters raise bills of empties and fulls. Shipping Departments check the empties

or fulls return, if there is any damage then it is written on the bill and send to Finance

Department. Finance Department track all the bills and make payment to the

distributors.

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Order send by FinancDepartment

Order received by shipping department

Loading fulls

Send to Distributors

Distributors unload empties

Shipping department receipt empties

Transporters make bills

Bills track in Finance Department

Process of payment is made in Finance Department

Final Payment

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63

When the goods are transported by the Transporters they give the detail to the

Shipping department how much they carry how much kilometers run and how much

they charge. Before giving goods to the transporter company make an agreement for

payment. The Shipping department prepares TRANSPORT SLIP CONFIRMATION.

It is prepared by the shipping executive and check by the Sr. executive and approved

by the Shipping manager.

When it is approved by the shipping manager it comes to Finance department. the

executive of the finance department track it in Excel Sheet and Jaguar. When it is

track in excel sheet the payment request send in Journal Voucher to other executive

for entry in Tally. After entry of the freight it is checked by the team leader of

executive.

When all the process of entry is true and the amount is true it is given for making

cheque.

When cheque is made it is send to Finance Manager or Associated Finance Manager

for signature. When Finance Manager or Associated Finance Manager make signature

on the cheque it is given for dispatched.

When payment is made to the Party the process of reconciliation is done with the

Party A/c. If there is any missing it is rectify with the help of the documents. If there

is any excess payment it is adjusted with the Party.

The process of payment is so long. There are so many people who check this entire

thing for the accuracy of the payment. Though here so many people for freight there is

very little chance for mistake in payments.

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COMPARATIVE COST ANALYSIS OF SAVING BY THE

SHIPPING DEPARTMENT IN ONE QUARTER OF OFF AND

PEAK SEASON

In this part of the project a comparison is done between the percentage of savings

done by the shipping department during a quarter of off season (October, November

and December) and a quarter of peak season (March, April and May).

Since the accounting procedure in the Coca Cola, Varanasi is based on the method of

standard costing thus every year an Annual Business Plan (ABP) is prepared for each

department and those targets are communicated to the respective departments. Based

on those standards the accounting for the profits generates or the savings made are

done for each department and accordingly plans for the next month are made

depending on the situation and the season.

In this cost analysis the budgeted plans for the shipping department are being

compared to those expenses actually occurred during that period. There are some

major heads for the shipping department in Coca Cola and those are:

1. Freight

2. Loading charges

3. Unloading charges

4. Sorting charges

My study is also based on these heads. First we must understand the work done under

these heads and for what the money is charged.

Freight – This is the amount paid to the transporter for taking the fulls to the

distributors and coming back with the committed empties or in other words it can be

said that these are transportation charges paid by the company for the transportation

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of final goods from the plant to the distributor’s warehouse and transporting the

empty bottles from the distributors warehouse to the plant.

Loading charges – These are the charges paid to the labour for loading a case into the

transportation vehicle.

Unloading charges – These are those charges paid to the labour for unloading the

empty bottle cases from the transportation vehicle.

Sorting charges – These are those charges paid to the labour for sorting the bottles

brand wise and those of the competitors.

In this study all these heads will accounted for each month and an average percentage

saving will be found out for the different quarters and compared for finding whether

the shipping saves more in the peak season or in the off season and then reasons for

the finding will be given at the end of the analysis.

BUDGETED AMOUNTS FOR DIFFERENT MONTH

MONTHS BUDGETED AMOUNT

October 2,94,200

November 1,53,936

December 1,87,188

March 3,61,818

April 2,80,116

May 3,67,560

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LOADING, UNLOADING & SORTING CHARGES

These charges are given per case in Rs.

Month Loading Unloading Sorting

October 0.16 0.2 0.24

November 0.16 0.2 0.24

December 0.16 0.2 0.24

March 0.13 0.16 0.2

April 0.13 0.16 0.2

May 0.13 0.16 0.2

It has been assumed that the number of cases loaded is equal to number of cases

unloaded.

Also the capacities of the two transport vehicle used are:

LP = 550 – 700 cases

DCM = 350 – 365 case

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CALCULATION OF AMOUNT PAID FOR

LOADING, UNLOADING & SORTING

LOADING

Month

No. of cases

loaded

Loading charges Total

October 53,730 0.16 8,596.8

November 28,557 0.16 4,569.12

December 25,728 0.16 4,116.48

March 3,07,843 0.13 40,019.59

April 4,92,433 0.13 64,016.29

May 6,33,872 0.13 82403.36

UNLOADING

Month No. of cases unloaded Unloading charges Total

October 53,730 0.2 10,746

November 28,557 0.2 5,711.4

December 25,728 0.2 5,145.6

March 3,07,843 0.16 49,254.88

April 4,92,433 0.16 78,789.28

May 6,33,872 0.16 1,01,419.5

68

SORTING

Month No. of cases sorted Sorting charges Total

October 13,324 0.24 3,197.76

November 7,273 0.24 1,745.32

December 6910 0.24 1,658.4

March 35,106 0.2 7,021.2

April 44,547 0.2 8,909.4

May 57,387 0.2 11,477.4

69

CALCULATION FOR FREIGHT CHARGES

FREIGHT CHARGES BY Kms for DISTRIBUTORS

Party code Party Name Place

1 A. K. DISTIBUTORS NAINI NAINI

2 A.M.DISTRIBUTORS NAINI NAINI

3 A.S.DISTRIBUTORS,CHILBILA CHILBILA

4 A.V.A. AGENCY BHADOHI BHADOHI

5 AARTI ENTERPRISES BALLIA BALIA

6 ABHISHEK TRADERS JAUNPUR

7 AGRAWAL AGENCY ALLAHABAD ALLAHABAD

8 AKASH COLD DRINKS SAIDABAD ALLAHABAD

9 AMAN TRADERS,KOPERGANJ KOPERGANJ

10 AMUL ENTER PRISES GHOSHI MAU

11 ANSHIKA ENTERPRISES,VARANASI SHIVPUR

12 ANUJ ENTERPRISES PHOOLPUR PHOOLPUR

13 ARIHANT TRADING COMPANY,MIRZAPUR MIRZAPUR

14 ASHISH TRADERS,BALIA BALIA

15 ASHU MARKETING ALLAHABAD

16 BABA AGENCIES ALLAHABAD

17 BABULAL &COMPANY GAZIPUR

18 BALAJEE ENTER PRISES JAUNPUR JAUNPUR

19 BANDEVI ENTERPRISES,BADUA BADUA GODAM

20 BHAIRO AGENCY DULLAHPUR DULLAHPUR

21 BHARAT COLD DRINKS,DUBIYA MODE DUBIYAMODE

24 BRIGANATH PRAM PRREMSHANKAR BARIA

25 CHAWALA AGENCY ALLHABAD ALLAHABAD

26 CHOURASIA COLD DRINKS,MUBARAKPUR MUBARAKPUR

27 DILIP COLD DRINKS. MIRZAPUR

70

28 DILSHAD COLD DRINKS ALLAHABAD

29 Durga Trading Allahabad ALLAHABAD

30 EKTA AGENCIES ALLAHABAD

31 EVERGEEN ENTER PRISES MAU MAU

32 FREINDS ENTERPRISES,MADHUBAN MADHUBAN

33 G.M.DISTRIBUTOR GHURPUR(NAINI) GHURPUR

34 GAJENDRA ENTERPRISES RENUKOOT

38 GAURAV ENTERPRISES,ALLAHABAD ALLAHABAD

39 GAURAV TRADERS BALIA

40 GOMTI TRADERS ALLD ALLAHABAD

41 GUPTA ENTERPRISES,BHADORA BHADORA

42 GUPTA SALES ASSOCIATION MARHIYAHU

43 HARI OM ENTERPRISES GAZIPUR

44 HARIYANA AGENCY OBRA RENUKOOT

45 HARSH ENTERPRISES,DHUDDI DHUDDI

46 HARSHIT ENTERPRISES MIRZAPUR

47 HASAN COLD DRINKS KAZZAKPURA VARANASI

48 J .P. ENTERPRISES MAUIMA MAUIMA

49 JAI AMBEY COLD DRINKS,JIYANPUR JIYANPUR

50 JAI MAA COLD DRINKS NARIBARI

51 JAI MAA VAISHNAV MAU

52 JAI MATADI COLD DRINKS MAU

53 JAI PRAKASH ENTERPRISES,SIPHA SIPHA

54 JAI SHANKAR ENTERPRISES,BANSDIH BANSDIH

55 JAI SRI RAM AGENCY VARANASI

56 JAIN AGENCY MOHMDABAD MOHMDABAD

57 JAISWAL TRADERS MAU MAU

58 JAISWAL AGENCIES,SUJAN GANJ SUJANGANJ

59 JYOTI AGENCY BHADOHI BHADOHI

60 JYOTI ENTERPRISES MUGALSARAI MUGALSARAI

61 KRISHNA ENTER PRISES VARANASI

62 KULDEEP COLD DRINKS HANUMANGANG HANUMANGANJ

63 KUMAR AGENCY,BADLAPUR BADLAPUR

64 LAXMI Traders ALLAHABAD

71

65 LOVE GERU ENTERPRISES ALLAHABAD

66 M/S DURGA TREDERS KOROAN KORAON

67 MAA ALOPE JEE CD,SAHSON SAHSON

68 MAA DURGA COLD DRINKS,KACHWA BAZAR

KACHWA

BAZAR

69 MAA KALI AGENCIES ALLAHABAD ALLAHABAD

70 MAA MANSHA COLD DRINKS GHAZIPUR GAZIPUR

71 MAA PARWATI ENTERPRISES,GHORAWAL GHORAWAL

72 MAA SAVITRI AGENCIES,ALLAHABAD ALLAHABAD

73 MAA SHANTI ENTERPRISES,SONBHADRA SONBHADRA

74 MAA SHARDA COLD DRINKS,JHUSI JHUSI

75 MAA TRIVENI DRINKS ALLHABAD ALLAHABAD

76 MAA VAISHNAV COLD DRINKS,RASRA RASRA

79 MADHU ENTERPRISES,SHANKARGARG, ALLD. Shankargarh

80 MAHAVEER ENTERPRISES GAZIPUR

81 MAMTA ENTERPRISES,BINA BINA

82 MANIK ENTERPRISES,MRZAPUR MIRJAPUR

83 MANISH COLD DRINK KOIRONA

84 Manju Enterprise VARANASI

85 MANOJ TRADERS ALLHABAD ALLAHABAD

86 MISHRA COLD DRINKS BELTHRA BELTHRA

87 MITTAL AGENCY BEEJPUR BEEJPUR

88 NARAYANA ENTERPRISES,JHANAGANJ JAHANAGANJ

89 NAVEEN AGENCIES,SULEMSARAI SULEMSARAI

90 NEERAJ COLD DRINKS AZAMATGARH AZAMATGARH

91 NEETIN ENTERPRISE JAUNPUR

92 NEHA TRADERS SIKANDARPUR SIKENDERPUR

93 NIGAM ENTERPRISES MACHHLI MACHALISHAHR

94 NIRMAL AGENCY ALLAHABAD ALLAHABAD

95 OM DISTIBUTORS VARANASI VARANASI

96 OM SHRI SHARDA LAXMI AGENCY ALLAHABAD

97 P P ENTERPRISES VARANASI

98 PARMATAMA ENTERPRISES ,GAIPURA GAIPURA

72

99 PARWATI COLD DRINKS HANDIA HANDIA

100 PATEL COLD DRINKS,SARAI MAMRESH

SARAI

MAMRESH

101 PAWAN ENTER PRISES VARANASI VARANASI

102 PAYAL COLD DRINKS LALGANJ(MZP)

103 PINTU COLD DRINKS AGENCY ALLAHABAD

104 PITAMAH COLD DRINKS GHAZIPUR GAZIPUR

105 POOJA TRADERS,RATANPURA RATANPURA

106 Pradeep CD,Allahabad ALLAHABAD

107 PRATAP ENTERPRISES, AZAMGARH

108 PREM COLD DRINKS,BARAUT BARAUT

109 PRINCE DISTRIBUTOR,KARCHANA BAZAR KARCHANA

110 PRITANSHI AGENCY,SHAHGANJ SHAHGANJ

111 R.K ENTER PRISES SAID PUR GAZIPUR

112 R.K.DISTRIBUTOR,VARANASI VARANASI

113 RACHANA COLD DRINKS KHARIANI

114 Rahil Enterprises ALLAHABAD

115 RAHUL TRADERS BHADOHI

116 RAINE COLD DRINKS MEZA ROAD MEZAROAD

117 RAJ AGENCY,SORAON SORAON

120 RAJPOOT SPORTS SHAKTINAGAR

121 RAKESH COLD DRINKS ATTROLIYA ATROULIA

122 RATAN AGENCIES,TELIYARGANJ ALLAHABAD

123 RITESH AGENCY GOPIGANJ GOPIGANJ

124 S.S ENTERPRISES LALGANJ

125 SAHU COLD DRINKS,DEVGAON DEVGAON

126 SANGAM ENTERPRISES VARANASI

127 SANGAM TRADERS,MONGRABADSAHPUR MONGRABAD

128 SANJAY AGENCIES ALLAHABAD

129 SANJAY TRADERS,JANGHAI JANGHAI

130 SANTOSH COLD DRINKS,ANAPARA ANAPARA

131 SARA TRADERS JAUNPUR

132 SARDAR COLD DRINKS MYORPUR MYORPUR

73

133 SARNATH COLD DRINKS VARANASI

134 SARVAGYA AGENCIES,ALLAHABAD ALLAHABAD

135 SATYA SAI ENTERPRISES,VARANASI MANDUADIH

136 SATYAM ENTER PRISES KHUTHAN KHUTHAN

137 SHABNAM COLD DRINKS GAZIPUR

138 Shalimar CD,Azamgarh CHANDPATTI

139 SHANTI ENTERPRISES,BALIA BALIA

140 SHARDA ENTERPRISES VARANASI

141 SHARDA ENTERPRISES AZAMGARH AZAMGARH

142 SHARDA ENTERPRISES(RAILWAY) MUGALSARAI

143 Sharma Enterprise BHAURALI

144 SHASHI ENTERPRISES AZAMGARH

145 SHIV COLD DRINKS CHEETBARAGAON BALIA

146 SHIV GANGA ENTERPRISES,LALGOPALGANJ LALGOPALGNJ

147 SHIV SHAKTI ENTER PRISES AURAI AURAI

148 SHIV SHANKAR AGENCIES ALLAHABAD

149 SHIV TRADERS AZAMGARH

150 SHIVAM AGENCY VARANASI

151 SHREE DISTRIBUTORS ALLAHABAD

152 SHRI SAI HARI ALLAHABAD

153 SHUBHI SANKAT MOCHAN AGENCY ALLAHABAD

154 SIDDARTH COLD DRINKS MGL- MUGALSARAI

155 SINGH COLD DRINKS,NANDGANJ NANDGANJ

156 SITA RAM & SONS KATRA RENUKOOT RENUKOOT

157 SM ENTERPRISES ALLAHABAD

158 SNEH RISHU ENTERPRISES JAUNPUR JAUNPUR

159 SRI BAJRANG ENTERPRISE MAU

162 SRI RAM & BROTHERS-NAGRA BALIA

163 SRI RAM ENTERPRISES VARANASI

164 SUBHAM AGENCY SIRATHU SIRATHU

165 SUPER AGENCY ALLAHABAD

166 SURBHI ENTERPRISES AZAMGARH

74

167 TAQEER COLD DRINKS ALLAHABAD

168 TRIPATHI COLD DRINKS MUBARAKPUR

169 UMESH CORPORATION,RENOOKOOT RENOOKOOT

170 USHA ENTERPRISES MEERGUNJ

171 V&K SK MIRZA PUR MIRZAPUR

172 VAISHNAV DISTRIBUTORS,CHOUBEPUR CHOUBEPUR

173 VANDANA AGENCY VARANASI

174 VARMA AGENCY MUBARAKPUR MUBARAKPUR

175 VASU AGENCY,MEHRUDEEH MEHRUDEEH

176 VIMALA ENTER PRISES JIGANA JIGNA

177 Vishal Enterprise JAUNPUR

178 VISHANATH COLD DRINKS CHOUBEPUR CHOUBEPUR

179 VIVEK COLD DRINKS BHARWARI BHARWARI

180 V'N ENTER PRISES ROBERTGANJ ROBERTGANJ

181 YADAV AGENCY RAMPUR RAMPUR

182 YASH DISTRIBUTERS VARANASI

183 YASHARTH AGENCY,ALLAHABAD ALLAHABAD

184 ZISHAN COLD DRINKS BILIRYAGANJ

For sake of convenience and shortage of space from here party codes will be used

over the party name. Also some of these notations will be used to save the space:

1. PC – Party Code

2. CD – Cases Demanded

3. NLP – Number of LP trips

4. NDCM – Number of DCM trips

5. LPF – LP Freight (two way)

6. DCMF – DCM Freight (two way)

7. TLPF – Total LP Freight

8. TDCMF – Total DCM Freight

9. TF-Total Freight

75

COST SHEET OF HINDUSTAN COCA COLA BEVERAGES PVT LTD.

PARTICULARS

AMOUNT PER

UNIT IN RS

200ML 300ML 2L

RAW MATERIAL CONSUMED 1.83 2.69 15.96

DIRECT LABOUR 0.32 0.71 7.34

PRIME COST 2.15 3.4 23.3

ADD: FACTORY OVERHEAD 1.51 1.95 6.35

WORKS COST 3.66 5.35 29.65

ADD OPENING WIP 0.14 0.35 1.45

LESS CLOSING WIP 0.15 0.45 1.25

COST OF GOODS MANUFACTURED 3.95 6.15 32.35

ADD GENERAL AND ADMINISTRATION EXP 0.85 1.05 3.24

ADD SELLING AND DISTRIBUTION EXP 1.35 1.65 7.05

ADD OPENING STOCK OF FINISHED GOODS 0.14 0.23 1.26

LESS CLOSING STOCK OF FINISHED GOODS 0.15 0.18 1.35

COST OF GOODS SOLD 6.45 9.26 45.25

PROFIT 0.55 0.74 4.75

SALES 7 10 50

RATIO OF FREIGHT WITH DIFFERENT COST

FREIGHT 0.35 0.42 2.05

RATIO OF FREIGHT WITH SALES

0.35/7*100 5%

0.42/10*100 4.20%

2.05/50*100 4.10%

RATIO OF FREIGHT WITH COST OF GOODS SOLD

0.35/6.45*100 5.42%

0.42/9.26*100 4.54%

76

2.05/45.25*100 4.53%

RATIO OF FREIGHT WITH COST OF MANUFACTURE

0.35/3.95*100 8.86%

0.42/6.15*100 6.83%

2.05/32.35*100 6.34%

RATIO OF FREIGHT WITH WORKS COST

0.35/3.66*100 9.56%

0.42/5.35*100 7.85%

2.05/29.65*100 6.91%

RATIO OF FREIGHT WITH PRIME COST

0.35/2.15*100 16.28%

0.42/3.4*100 12.35%

2.05/23.3*100 8.80%

77

RESEARCH METHODOLOGY

78

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the problem.

It may be understood as a science of studying how research is done scientifically. In it

we study the various steps that are generally adopted by the researcher in studying his

research problem along with logic behind them . it is necessary for the researcher to

know not only the research methods/techniques but also the methodology used.

Researchers not only need to know how to develop certain indices or tests , how to

calculate mean or median or mode, how to apply particular research techniques but

must also know which of these methods or techniques are relevant and what would

they mean and indicate and why.

Research process consists of series of actions or steps necessary to effectively carry

out the research.

RESEARCH DESIGN:

The function of research design is to provide for collection of relevant evidence with

minimal expenditure of time effort and money. I followed the census method as I did

daily route riding along with the executives and the salesmen. I got opportunity to

meet and interact with each one of the retailers and closely came to know specific

need of the promotion of Coca-Cola in the market as a whole. I covered the

distribution area under highways at Faizabad area. Under the supervision I got

number of relevant data from on spot inspection and personal observation.

METHODS OF DATA COLLECTION:

Observation and interaction with the retailers provided me in depth knowledge about

the availability of changes in promotional items provided by Pepsi and Coca-Cola by

the distributors. I collected all vital data from the outlets visits and survey during my

79

summer training and which would be of high consideration regarding the designing of

the coming years marketing budget by the Coca-Cola Company.

The survey sheet was instantaneously equipped of data duly observed by me and in a

systematic manner. The data thus inculcated is through Primary Source by Personal

Interviews, Enquiries and Observation. The responses thus received were also

encouraging on my behalf and as well as the company.

1.) MARKETING RESEARCH OBJECTIVES:

a.) To understand the market study to know the Coca-Cola

transportation cost.

b.) Comparative transportation cost analysis with regard to

Pepsi and Coca-Cola.

2. TYPE OF STUDY : EXPLORATORY

3. RESEARCH AREA : LUCKNOW & FAIZABAD REGION

4 SOURCE OF INFORMATION : (PRIMARY)

In this type of data collection mode the interviewer uses the wording and order that

seems most appropriate in the context of each interview. These interviews are useful

in obtaining a clearer understanding of the problem and determining what areas

should be investigated.

80

5 DATA COLLECTION INSTRUMENT : (SURVEY SHEET)

There are several ways of collecting the information considerably in the context of

money costs, time and other resources at the disposal of the researcher.

I collected data for my project work through the medium of Survey Sheets

In this method I got the prepared sheets from the company comprising of relevant

questions related with my project. Then I contacted respondents on their shops along

with the sheets for collecting the information.

6.) RESEARCH APPROACH: (SURVEY METHOD)

7.) SAMPLING PLAN:

Sample design is a definite plan determined before any data are actually collected for

obtaining a sample for a given population. The sample design to be used must be

decided by the researcher taking into consideration the nature of inquiry and other

related factors.

I have paid attention on the following points while designing the sample:

a) Target population

b) Sample Unit

c) Sampling Size

d) Sampling Method

a). TARGET POPULATION:

the population of the study consisted of retailers and dealers. Target population was

taken from the city of FAIZABAD.

b). SAMPLING UNIT:

Random sampling was chosen that is where any outlet of the whole population was

likely to be selected as any other outlet that is all the outlets of the population have

equal chances.

Shops pursuing promotional tools (both dealers and retailers) in FAIZABAD cities.

81

c). SAMPLE SIZE:

a total of 100 shops were observed from the city -FAIZABAD.

d). SAMPLING METHOD: Purposive Sampling

82

FINDING AND ANALYSIS

83

FINDINGS

1) The cost of transportation cost is very high.

2) The process of payment of freight is so long.

3) The Transporter of the company is not satisfied with late payment.

84

LIMITATION

This report is based on only 100 peoples.

Observed only the people of FAIZABAD city

Purity of report depends on the respondents how willingly they have given

the answer

Respondent were giving biased answers.

Many respond were not ready to give answers.

85

ANALYSE OF FREIGHT FOR COST

SAVING

1. When there is off season the company should have take empty bottle with club

load because when the company take it with two parties the cost of freight will

reduce.

2. When there is off season the company should take one way in very less time,

if company take less time one way receipt it reduced the cost of freight.

3. When there is off season the company should reduce the detention cost, it is

necessary for cost saving.

4. When there is off season the company should promote the incremental cost

because it reduce the cost of freight due to extra case carry.

5. When there is off season the cost of freight on daily loads is very high, this

time sales is very low so the company should reduce daily loads.

86

Factors Affecting The transportation

Cost:

Diesel Rates: - The cost of diesel is very important for transportation cost if the

rate of diesel is increase there is changes in the agreement according to the

increased.

Number of Competitor:- If the number of transporters are very much in the

market then it is possible to bargain with the transporters for transportation cost, if

there is less transporter in the market then we have no choice for bargain.

Monopoly of the transporter comes and we have to use the high rate transportation

cost.

Demand of the products:- If the demand of the product is very high and the

transporters show the demand of product and think if they attached with the

company it is beneficiary for the transporter then the cost of transportation is low.

Area to Covered:- The other factor of the transportation cost is area to cover, if

the area is far from the factory the cost of transportation is high so area is very

important for the transportation cost.

Distribution Channel:- If distribution channel is very high then the

transportation cost for the company is very less because the company send the

goods to the mediators.

Competitor’s Market Strategy:- If the transporter company show the strategy

of the market that it is beneficiary for them then they reduced transportation cost.

87

Season:- In the peck season the transporters carry a huge number of product,

there is no change in the agreement but they carry goods in heavy vehicles and the

cost of transportation is very less in the heavy vehicles.

No. in Units

88

This is the graph of fulls which carry by the transporters during the peck season, off

season or the starting peck season. We can easy understand by showing the graph that

in the peck season heavy truck carry goods and small truck carry goods according to

the sales, in peck season sales are very much so heavy trucks carry more then small

truck.

No. in Units

89

ANNEXURE

90

RECOMMENDATION AND

SUGGESSION1) The company has to make more club load in off season for reduce the

transportation cost.

2) The company has to reduce the detention cost.

3) The company has to reduce one way carries.

4) If any area of the Market is far from the factory the company should make

distribution channel for that location.

91

CONCLUSION1) The cost is very high.

2) The various Retailer had an enormous demand for better GSB’s and in many

cases of DPS for a better, impressive outlet look to attract consumers.

3) The endless demand of visicoolers in order to store large quantity of stock as a

part of marketing and distribution promotional function of the company is

studied therein.

4) The steady flow of the company’s promotional accessories could be felt

irrespective of the consumption of the outlets of the product. For example:

racks, counters, sign boards, etc.

5) In a competitive environment the company got to study the schemes of their

closest rivals, which they followed and in return fulfilled, the needs regarding

their outlets set up.

6) Timely check up of the proper usage of the Co’s assets (SGA) being made as

well as their malfunctioning is rectified.

7) Misuse of the Coca-Cola SGA’s should be brought into consideration as a

retailers, stock, other companies, stock and depreciate the demand of the

source company.

8) The archrivals product study can be entertained from the retailers and the

privilege on their part is known which helps in formulation of better marketing

promotional scheme’s

9) Pepsi’s regular stockholders be traced and break up by providing motivational

introductory offers enhancing the market capture.

10) Coca-Cola should try to make arrangements so that the marketing

representatives would visit the retail outlets regularly and try to solve the

92

retailers, as well as the distributors, problems which they usually face during

the peak season.

11) Better efficient sales representatives be appointed to update the retailers about

the schemes in comparison to Pepsi. This would encourage a curiosity

regarding the Coca-Cola schemes among them.

12) The complaints of the retailers be studied and paid attention of the highest

degree to ensure better market capturing.

BIBLOGRAPHY

BOOKS:-

Finance Management – R. Radhaswami

Financial Management – M. Y. Khan

FUTURE OF BUSINESS

ET Knowledge Series- Marketing Management

Barry Berman, Joel R. Evans-Retail and Marketing Management: A Strategic

Approach

MAGAZINES / NEWSPAPERS:-

Business World

Business Times

The Financial Express

The Times of India

The Economics Times

The Business Standards

REFERENCES:-

www.cocacola.com

www.foodinfast.com

www.food-n-fast.com

www.rocsearch.com

93

ANALYSIS and INTERPRETATION

How many units do you sold in every week in range?

Ans.

A) Less than 1000 unit B)1000-5000 unit

C) 5000-10000 unit D)more than 10000 units

94

QUES-2

How much stock you have to keep every month?

Ans.

A) Less than 1000 unit B)1000-5000 unit

C) 5000-10000 unit D)more than 10000 units

95

Ques:-3 Do festival offers come from the distributors?

a) YES b) NO c) SOMETIMES

96

Ques-4 what are the expectations of the distributors from you?

Ans.

a.) Public grievance b.) Stock maintenance

c.) Business promotion d.) Transportation

97

Ques no-5 which Mode of payment used by Retailer ?

a) Cheque b) Demand Draft

c)Post Dated Cheque d) Cash

98

Ques-6 Average sales turnover in last one year?

a.) 10,000,00 unit b.) 12,000,00 unit

b.) 15,000,00 unit d.) 20,000,00 unit

Unit in Lakhs

99

Ques-7 How much unit have you sold in every week in range?

a)10,000-15,000 unit b.) 15,000-20,000 unit

c)20,000-25,000 unit d.)25,000-30,000 unit

Unit in Lakh’s

100

Ques-8

What is the range of profit you earn per month?(Average)

a) Approx. 20,000 b) Approx. 30,000

c) Approx. 40,000 d) Approx. 50,000

101

Ques-9Mode of transportation

( a) Railways ( b) Plane

(c ) Cargo ship ( d) Roadways

102

Ques-10

If there is any damage/ problem during of transportation of goods, what is

coverage by the company and channel members?

a) Replacement of goods

b) Cost cutting of damaged goods

c) Compensation due to damage

103

QUESTIONNAIRE FOR

DISTRIBUTORS

Average sales turnover in last one year?

c.) 10,000,00 unit b.) 12,000,00 unit

d.) 15,000,00 unit d.) 20,000,00 unit

How much unit have you sold in every week in range?

a.) 10,000-15,000 unit b.) 15,000-20,000 unit

e.) 20,000-25,000 unit d.)25,000-30,000 unit

What is the range of profit you earn per month?(Average)

a) Approx. 20,000 b) Approx. 30,000

c) Approx. 40,000 d) Approx. 50,000

How much stock you have to keep in each month to open sales?

a.) 5,000 units b)10,000 units

c) 15,000 units d) 20,000 units

Festival offers come from company?

a) Discount offers

b) Free gift offers

c) BOTH

What offers are provided in festivals to your retailers?

a.) Bonus Stock b.) Festival discount

c.) Festival utility gifts d.) All of these

What are the expectations of the company from the channel members?

a.) Proper distribution of goods

b.) Customer satisfaction

c.) Business promotion

d.) Market analysis

How often is the performance evaluation done and how are goals set? Please tick

() The option that applies.

Goal settings

104

( ) Quarterly ( ) Bi-Annually

( ) Annually ( ) Monthly

Performance Evaluation

( ) Weekly ( ) Bi-Annually

( ) Monthly ( ) Quarterly

Mode of payment

a.) Cheque b.) Commercial Banking

c.) Internet Banking d.) Demand Draft

What is the credit period?

a.) 1 weeks b)2 weeks

c) 3weeks d) 4 weeks

What is the credit sale?

a.) Approx.1,00,000 b)Approx.1,50,000

c)Approx.2,00,000 d)Approx.2,50,000

Mode of transportation

( ) Railways ( ) Plane

( ) Cargo ship ( ) Roadways

If there is any damage/ problem in time of transportation what is coverage by

the company and channel members?

a.) Replacement of goods

b.) Cost cutting of damaged goods

In case of new product/ change in technology, Does Company informs about

the product to their channel members?

a.) Yes

b.) No

Communication among the channel members (Hand shaking process)

One way ___________________________

Two way ___________________________

105

QUESTIONNAIRE FOR RETAILER

How much unit have you sold in every week in range?

Ans.

B) Less than 1000 unit B)1000-5000 unit

C) 5000-10000 unit D)more than 10000 units

How much stock you have to keep every month?

Ans.

B) Less than 1000 unit B)1000-5000 unit

C) 5000-10000 unit D)more than 10000 units

Do festival offers come from the distributors?

a) YES b) NO c) SOMETIMES

What are the expectations of the distributors from you?

Ans.

a.) Public grievance b.) Stock maintainence

c.) Business promotion c.) Transportation

Does distributer provide you productson credits?

a) YES b) NO

What is the limit of credits?

a.)Less than 5000 unit b.) 5000 unit To 10000 unit

c.)10000 unit To 15000 unit d.) More than 15000 unit

Mode of payment:-

a) Cheque b) Demand Draft

c)Post Dated Cheque d) Cash

Does a distributor provide any gift for good sales?

a) YES b) NO

What is the mode of transportation?

a) Airways b) Railways c)Roadways

In case of new product, does distributors inform you about the product?

106

a) YES b) NO

What is the method of communication between you and distributors?

a) One way b)Two ways

Are you satisfied with the services provided by distributor?

a) YES b)NO

107

108