Final Internship Report

Student Name: Md. Sahadat ullah

Batch: Fall Winter 2010-12 (ISBE-A)

ID No. D1012FWISBE-A10342-(KOL-2A-CT-2038)

ORGANIZATION: BENGAL BEVERAGES PRIVATE LIMITED (BBPL)

TITLE:

PROJECT REPORT ON MARKETING STRATEGIES ON CUSTOMER MANAGEMENT SYSTEM FOR COCA COLA

INBENGAL BEVERAGES PRIVATE LIMITED (BBPL)

Ph. No. – 8860903869, 7827881877 Email: [email protected]

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COMLPETION CERTIFICATE FROM THE COMPANY/ORGANIZATION

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Acknowledgement

First of all I would like to place on record my gratitude to all concerned respectable executives of ‘Bengal Beverages Private Limited (BBPL) ’of COCACOLA for giving me this opportunity of internship which has been a pure learning experience and which have enlightened my knowledge and skills about the soft drink manufacturing industry.

I would also like to express my gratitude towards the ‘Indian Institute Of Planning & Management (IIPM)’ for giving me the opportunity to undergo Summer internship at Bengal Beverages Private Limited (BBPL) .

I am specially thankful to my mentors Mr. Samiran Choudhury (ASM) for guidance and cooperation during this internship and in fact without their navigational assistance life would have been very difficult as far as structuring the projects are concerned. I would be always grateful to them for their help and support.

Lastly but not the least I would like to thank Mr. Debopom Dey (Personal Executive) HR dept. and Mr. Nikhilesh Bhattacharya (Training Manager) for inducting the module of internship programmes at Bengal Beverages Private Limited (BBPL) without which I shouldn’t have ever learnt what I had during my internship.

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Preface

In summer the consumption of soft drinks is more due to hot weather in this time chilled weather is needed everywhere and everybody irrespective of age difference. In the market people not only needed water, but they want some taste too. Here comes the need of soft drinks: is has become an essential part of market as people like it in addition to the bottles, now a days packages of soft drinks i.e. Tin can, Pet Packs of i.e. Litter Canisters and dispensers are introduced to enhance the impact in sales.

The matters curriculum is designed in such a way student can grasp maximum knowledge and can get practical exposure to the corporate world in minimum possible time. Business school of today realised the importance of practical knowledge over the theoretical base.

The research report is necessary for the partial fulfilment of Masters curriculum and it provides an opportunity to the student in understanding the industry with special emphasis on the development of skills in analyzing and interpreting practical problems through the application of management theories and techniques.

It is a new platform of learning through practical experience, which incorporate survey and practical analysis. It gives the learner an opportunity to relate the theory with the practice, to rest the validity and applicability of his classroom learning against real life business situation.

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TABEL OF CONTENTS

S.No. CONTENTS

1. Executive Summary

2. Introduction

3. Research Objectives and methodology

4. Sector Overview

5. Manifesto for Growth

6. Types of Bottling operations

7. Business Model l Of Coca-Cola

8. Coca-Cola Products

9. Management At A Glance

10. Vision 2020

11. Company Overview

12. Visit To A Plant

13. Products Of BBPL(Bengal Beverages Pvt. Ltd.)

14. SWOT Analysis

15. Comparative Positions

16. Financial Analysis

17. Questionnaire Preparation for Primary Data

18. Primary Findings and Analysis

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19. An Assessment of the Internship

20. Conclusions and Recommendations

21. Illustrations and Annexure

22. Bibliography

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1. EXECUTIVE SUMMARY

Coca-Cola, the product that has given its best-known taste as born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 brands. It sells beverage concentrates and syrups to bottling and canning operator, distributors, fountain retailers, fountain wholesalers.

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-coloured syrup in a three legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at a soda fountain.

Carbonated water as teamed with the ne syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system develop that Coca-Cola become the world famous brand it is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal it’s formula to the Government and reduce it’s equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India.

In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India. Now it has about 25 own bottling operations, 18 franchisee own bottling units and 8 contract packaging operation across the India. Bengal Beverages Private limited of West Bengal is a leading franchisee own bottling operation (FOBO) of the eastern region of the country.

The main objective of the study lies in understanding the organization and studying the market of the SSD (Sparkling Soft Drinks) brands by Coca-Cola and understanding the consumer’s perception and opinion about the products, with more inclination towards the study of market of juices, soft drink, packaged water and respective competitor’s analysis.

This report will also give insight the company’s norms to maintain standards, the production process, their strategies to keep up with their retailers, companies approach to the sales of SSD and most importantly this report will provide an

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opportunity to know the psychographic needs of the retailers which in turn shows the company an avenue to create good future plans. This report will provide detail information about prevailing market competition and thus prepare itself to meet the market challenge by making adjustments in its new strategy and promotional activity.

The project begins with in-depth interview with the owner of retail outlets, as primary source, to extract the reality on ground level about “retailer’s psychology’ as our distributors and “competitor’s position and strategy”. The third need was to know the psychographic needs of our customers, which was achieved by feedback/questionnaire process among 100 to 150 retailers and the end level consumers. The conclusion drawn from the quantitative analysis of data via graphs and open ended feedbacks, are represented in under the tag of gap analysis/grievances and implications/suggestions.

We will like to add that the project will provide the readers and listeners very

high profile information about the marketing strategies as a whole and also

about the Coca Cola Company. Therefore the company is the market leader

among all beverages in 21st century.

In the end we hope that the project will result very profitable for the readers

and Coca Cola. Your feedback in the end either critical or substantial will be

very highly appreciated

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2. INTRODUCTION

A Brief Insight – The FMCG Industry I India.

Fast moving consumer goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other product,.

The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across it’s various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and custom service strategies to strengthen their position in the market.

By the turn of 20’th century, the face of the Indian FMCG industry had change significantly. With the liberalization and growth of the Indian economy the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the internet. Apart from this social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increase spending power also contributed to the increase in the Indian consumers’ personal consumption. The realization of the customer’s growing awareness and the need to meet changing requirements and preferences on account on changing lifestyle required the FMCG producing companies to formulate customer centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increase availability of retail space, rapid urbanization and qualified man power also boosted the growth of the organised retailing sector.

Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers and airlines, FMCG doesn’t suffer from mass lay-offs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner.

Unlike other economic sectors, FMCG share float in a steady manner respective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the forth largest sector in the Indian economy and it’s worth rupees 93000crores. The main contributor, making of 32% of the sector , is the south

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Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs. 143000 crores. The sector being one of the biggest sector s of the Indian economy provides up to 4millon jobs.

The FMCG sector consists of the following categories:

1. Personal Care- Oral Care, Hair care, Wash(Soaps), Cosmetics and toiletries, Deodorants and perfumes, Paper product(Tissues, Diapers, Sanitary Products) and Shoe Care. The major players being – Hindustan Unilever Ltd. , Godrej Soaps, Colgate Marico, Dabur and Procter & Gamble.

2. Household Care - Fabric Wash(Laundry soaps and synthetic detergents), Household cleaners(Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito Repellents, Metal polish and furnirture polish. The major players being – HUL, Nirma, Ricket Benkijol.

3. Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery Products(Biscuits, Breads, Cakes), Snack Foods, Chocolates, Ice-creams, Tea, Coffey, Processed Fruits, Processed vegetable, Processed Meats, Branded Flour, Bottled water, Branded Rice, Branded Sugar, Juices. The major players being – HUL, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur.

4. Spirits and tobacco- The major players being- ITC, Godfrey, Philips and UB.

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Beverage industry in India; a brief insight:-

In India, beverages form an important part of the lives of people. It is an

industry, in which the players constantly innovate, in order to come up with

better products to gain more consumers and satisfy the existing consumers.

The soft-drink industry comprises companies that manufacture non-alcoholic

beverages and carbonated mineral waters or concentrates and syrups for the

manufacture of carbonated beverages.

Non-alcoholic soft drink beverage market can be divided into fruit drinks and

soft drinks. Soft drinks can be further divided into carbonated and non-

carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango

drinks come under non carbonated category.

Cola products account for over 60% of the total soft drink market and include

popular brands such as Coca-Cola, Pepsi, and Thumps up etc. Non-cola

segment constitutes for over 35% of the market.

Types of Alcoholic Non Alcoholic Hot & cold Others

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beverages

ExamplesBeer,

champagne etc.

Non Alcoholic

wine, apple-

cider, squash,

lemonade,

juices,

carbonated

Tea, coffee,

iced tea,

cold coffee

Milk,

soup

THE TYPES OF BEVERAGES (WIKIPEDIA, 2010)

Flavoured carbonated beverages, or soft drinks, were developed by apothecaries

And chemists in the early nineteenth century by the addition of flavoured

Syrups to fountain dispensed carbonated water. The introduction of proprietary

Flavours began in the late 1880s. Charles H. Hires introduced his root beer

extract

In 1876, Vernors’s Ginger Ale was marketed by James Vernor in 1880, R. S.

Lazen by perfected the formula for Dr. Pepper in 1885, and John S. Pemberton

Developed the formula for Coca-Cola in 1886.Brad’s Drink was introduced in

1896 and was later renamed Pepsi-Cola in 1898.

The per capita consumption of soft drinks in India is among the lowest in the

world - 5 bottles per annum compared to the 800 bottles per annum in the USA.

Delhi reports highest per capita consumption in the country, 50 bottles per

annum. The consumption of PET bottles is more in the urban areas [75% of

total PET bottle (plastic bottles) consumption] whereas the sales of 200ml

bottles were higher in the rural areas. According to a survey, 91% of the soft

drink consumption in India is in the lower, lower middle and upper middle class

section.

Last one century witnessed the entry of various soft drink companies but only

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few of them were able to survive. The major among them are COKE and

PEPSI. These are the only two companies that has shared the whole market

between them and left a very small share for the remaining ones. This made the

word cola drink synonymous to the word soft drink.

Entry Barriers in Beverage Market

What are the factors that made the soft drink market a duopoly market?

The several factors that make it very difficult for the competition to enter the

soft drink market include:

The factors that made the duopoly soft drink market and that make it very

difficult for the competition to enter the soft drink market include:

Network Bottling:

Both Coke and PepsiCo have franchisee agreements with their existing bottler’s

who have rights in a certain geographic area in perpetuity. These agreements

prohibit bottler’s from taking on new competing brands for similar products.

Also, with the recent consolidation among the bottler’s and the backward

integration with both Coke and Pepsi buying significant percent of bottling

companies, it is very difficult for a firm entering to find bottler’s willing to

distribute their product.

The other approach to try and build their bottling plants would be very capital-

intensive effort with new efficient plant capital requirements in 2011 being more

than $ 1.6 billon per annum.

Advertising Spend:

The advertising and marketing spend in the industry is very high by Coke, Pepsi

and their bottler’s. This makes it extremely difficult for an entrant to compete

with the incumbents and gain any visibility.

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Brand Image / Loyalty:

Coke and Pepsi have a long history of heavy advertising and this has earned

them huge amount of brand equity and loyal customer’s all over the world. This

makes it virtually impossible for a new entrant to match this scale in this market

place.

Fear of Retaliation:

To enter into a market with entrenched rival behemoths like Pepsi and Coke is

not easy as it could lead to price wars which would affect the new comer.

Retailer Shelf Space (Retail Distribution):

Retailers enjoy significant margins of 15-20% on these soft drinks for the shelf

space they offer. These margins are quite significant for their bottom-line. This

makes it tough for the new entrants to convince retailers to carry/substitute their

new products for Coke and Pepsi.

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3. RESEARCH OBJECTIVES AND METHOLOGY

The main objective of this study lies in studying and understanding the

techniques of “New dealership activation Process” in the diversified mar-

ket.

To find out the difficulties to create new dealership and sort out the reme-

dies for difficulties.

Comparative analysis among brand packages, views of the customers.

Methodology

The selection of the research method is crucial for the conclusions as it affects

what we have to say about the cause and factors influencing the project work. It

was important to choose a research method which was within the limits of what

could be done. Time, feasibility, ethics and availability to measure the

phenomenon correctly were issues constraining the project work. Research was

conducted in MEMARI, a city of Burdwan District, West Bengal, India.

Instrument

Two different questionnaires was devised to carry out one for Consumers and

other for Retailers.

Sources of Data

1.) Primary Sources

The sample consists of students, employees, people on the streets and retailers.

Various measurable factors were identified. Based on these variables, primary

sources were identified.

2.) Secondary Sources

It was collected from the employees and HR of the company; they provided

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various information about the company “Bengal Beverage Pvt. Ltd.(BBPL),

which really helped in gathering the information.

QUESTIONNAIRE DESIGN

First of all for designing the questionnaire, there are scaling techniques

available like:

1) Comparative Scales.

a) Paired Comparison

b) Rank order

c) Constant Sum

d) Other Techniques

2) Non – Comparative Scales

a) Continuous Rating Scales

b) Itemized Rating Scales

Likert Scale

Semantic Differential Scale

Staple

Out of all these mentioned techniques for designing the questionnaire, I have

opted for Comparative Scale Technique since this way it becomes much more

easy for answering the questions and also the context in which the questions

have been asked, gets delivered across to the other party easily. And thus we can

analyze the responses in a better way.

And to obtain the graphical view of the responses being generated, we have

used the Bar graph and Pie chart analysis, since it also helped in doing

justification to the responses being gathered from the sample, as it again clearly

becomes visible that how much percentage of customers agree with which

question being asked and thus accordingly a collective percentage of the

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participants, really helped us to gather/ conclude our findings in a more

effective and an efficient manner.

Method of Data Collection

Data collection means gathering information to address those critical evaluation

questions that were identified earlier in the evaluation process. Data was

collected by conducting opinion surveys by filling out questionnaires on paper

and on internet.

Data Collection:

The data was collected through survey.

Consumers

Number of consumers who were survey – 100

Number of responses through email – 25

Number of responses obtained by personal interview – 75

Retailers

Number of retailer who were survey through personal interview – 100

Sampling

Sampling involves selecting units from a population of interest so that by

studying the sample one can fairly generalize the results back to the population

from which they were chosen. In the present course work, convenience

sampling was used and an aggregate sample size of 100 consumers was

considered.

Sampling technique

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Sample Type: “Non Probabilistic” Convenience sampling was followed.

Convenience sampling is used in exploratory research where the researcher is

interested in getting an inexpensive approximation of the truth. As the name

implies, the sample is selected as per the convenience

Sample size: 100

4. Sector Overview

The Coca-Cola Company

The Coca-Cola Company exists to benefit and refresh everyone it touches.

Coca-Cola, the product that has given the world its best- known taste was born

in Atlanta, Georgia on May 8, 1886. Coca-Cola Company is the world’s leading

manufacturer, Marketer and distributor of

non-alcoholic beverage concentrates and

syrups, used to produce nearly 400 beverage

brands. The corporate headquarters are in

Atlanta, with local operations in over 200

countries around the world. The Coca-Cola

Company began building its global network

in the 1920s.Coca-Cola system has

successfully applied a formula on a global

scale “Provide a moment of refreshment for

small amount of money a billion times a

day”.

When launched Coca-Cola two key ingredients were

cocaine (benzoyl methyl ecgonine) and caffeine.

The cocaine was derived from the coca leaf and the

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Type Public(NYSE:KO)Industry BeverageFounded 1886, USA

Headquarters Atlanta, Georgia , USA

Area served WorldwideKey People Muhtar Kent

(Chairman and CEO)

Products Coca ColaCarbonated Soft

DrinksWater

Other non alcoholic beverages

Employees 92,400 (October 2009)

Website KO.com 

caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kola was

replaced with a "C" for marketing purposes Coca-Cola often referred to simply

as Coke (a registered trademark of The Coca-Cola Company in the United

States since March 27, 1944)was invented in May 1886 by Dr. John Stith

Pemberton in Atlanta, Georgia. The name "Coca-Cola" was suggested by Dr.

Pemberton's bookkeeper, Frank Robinson. He penned the name Coca-Cola in

the flowing script that is famous today.

Coca-Cola was first sold at a soda fountain in Jacob's Pharmacy in Atlanta by

Willis Venable. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on

May 8, 1886.

It was initially sold as a patent medicine for five cents a glass at soda fountains,

which were popular in the United States at the time due to the belief that

carbonated water was good for the health.

Pemberton claimed Coca-Cola cured many diseases, including morphine

addiction, dyspepsia, neurasthenia, headache, and impotence.

Pemberton ran the first advertisement for the beverage on May 29 of the same

year in the Atlanta Journal. The company was formed to sell three main

products: Pemberton's French Wine Cola (later known as Coca-Cola),

Pemberton's Indian Queen Hair Dye, and Pemberton's Globe Flower Cough

Syrup.[The Coca-Cola formula and brand was bought in 1889 by Asa Candler

who incorporated The Coca-Cola Company in 1892.

In 1892 Candler incorporated a second

company, The Coca-Cola Company (the

current corporation), Coca-Cola was sold

in bottles for the first time on March 12,

1894. The first Outdoor wall

advertisement was painted in the same

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year as well in Cartersville, Georgia. CAN of Coke first appeared in 1955. On

February 7, 2005, the Coca-Cola Company announced that in the second quarter

of 2005 they planned to launch a Diet Coke product sweetened with the

artificial sweetener sucralose, the same sweetener currently used in Pepsi One.

On March 21, 2005, it announced another diet product, Coca-Cola Zero,

sweetened partly with a blend of aspartame and acesulfame potassium. On July

5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the

first time since the Arab League boycotted the company in 1968. In India,

Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink

ThumsUp. The Coca-Cola Company purchased Thums Up in 1993. As of 2004,

Coca-Cola held a 60.9% market-share in India.

Coca-Cola was the first commercial sponsor of the Olympic

games, at the 1928 games in Amsterdam, and has been an

Olympics sponsor ever since. Special aluminium bottle

designed exclusively for the Vancouver 2010 Olympic

Winter Games Torch Relay.

This corporate sponsorship included the 1996 Summer

Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its

hometown.

Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other

competitions organized by FIFA. In fact, one FIFA tournament trophy, the FIFA

World Youth Championship from Tunisia in 1977 to Malaysia in 1997, was

called "FIFA — Coca Cola Cup".

In 2010 it was announced that Coca-Cola had become the first brand to top £1

billion in annual UK grocery sales

Ingredients

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Carbonated water

Sugar (sucrose or high-fructose corn syrup depending on country of ori-

gin)

Caffeine

Phosphoric acid v. Caramel (E150d)

Natural flavourings

A Can of Coke (12 fl ounces/355ml) has 39 grams

of carbohydrates (all from sugar, approximately 10

teaspoons), 50 mg of sodium, 0 grams fat, 0 grams potassium,140calorie.

Formula of natural flavourings

The exact formula of Coca-Cola's natural flavourings (but not its other

ingredients which are listed on the side of the bottle or can) is a trade secret. The

original copy of the formula is held in SunTrust Bank's main vault in Atlanta. Its

predecessor, the Trust Company, was the underwriter for the Coca-Cola

Company's initial public offering in 1919. A popular myth states that only two

executives have access to the formula, with each executive having only half the

formula. The truth is that while Coca-Cola does have a rule restricting access to

only two executives, each knows the entire formula and others, in addition to

the prescribed duo, have known the formulation process.

The 1’st Logo..

The famous Coca-Cola logo was created by John Pemberton's bookkeeper,

Frank Mason Robinson, in 1885. Robinson came up with the name and chose

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the

logo's distinctive cursive script. The typeface used, known as Spencerian script,

was developed in the mid 19th century and was the dominant form of formal

handwriting in the United States during that period.

Robinson also played a significant role in early Coca-Cola advertising. His

promotional suggestions to Pemberton included giving away thousands of free

drink coupons and plastering the city of Atlanta with publicity banners and

streetcar signs.

The World’s Most Powerful Brand

Inter-brand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand

in the World, estimated its brand value at $70.45 billion .The ranking’s

methodology determined a brand’s valuation on the basis of how much it was

likely to earn in the future, distilling the percentage of revenues that could be

credited to the brand, and assessing the brand’s strength to determine the risk of

future earnings forecasts. Considerations included market leadership, stability,

and global reach, incorporating its ability to cross both geographical and

cultural borders.

From the beginning, Coke understood the importance of branding and the

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creation of a distinct personality. Its catchy, well-liked slogans (“It’s the real

thing” (1942, 1969), “Things go better with Coke” (1963), “Coke is it” (1982),

“Can’t beat the Feeling” (1987), and a 1992 return to “Can’t beat the real

thing”) linked that personality to the core values of each generation and

established Coke as the authentic, relevant, and trusted refreshment of choice

across the decades and around the globe.

5. MANIFESTO FOR GROWTH

The world is changing all around us. To continue to thrive as a business oer the

next ten years and beyond, we must look ahead, understand the trends and

forces that will shape our business in the future and move swiftly to prepare for

what’s to come. The company must get ready for tomorrow at today. That’s

what 2020’s vision is all about. It creates a long-term destination for our

business and provides us with a “Road-Map” for winning along with the

bottling partners,

MISSION:-

To Refresh the world ------- In body, Mind and Spirite.

To Inspire Moments of Optimism....... Through our brands and our

actions.

To Create Value and Make a Differnces.....Everywhere we engage.

VISION:-

To achieve sustainable growth, we have established a vision with clear goals.

Profit - Maximizing return to shareowners while being mindful of our

overall responsibilities.

People - Being a great place to work where people are inspired to be the

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best they can be.

Portfolio - Bringing to the world portfolios of beverage brands that

anticipate satisfy peoples; desires and needs.

Partners - Nurturing a winning network of partners and building mutual

loyalty

Planet - Being a responsible global citizen that makes a difference.

VALUES:-

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

the world.

Leadership - The courage to shape a better future.

Collaboration - Leverage collective genius.

Integrity - Be real.

Accountability - If it is to be, it's up to me.

Passion - Committed in heart and mind .

Diversity - As inclusive as our brands.

Quality - What we do, we do well.

Focus on the Market 

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

Work Smart

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

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Act Like Owners

• Be accountable for our actions and inactions• Steward system assets and focus on building value• Reward our people for taking risks and finding better ways to solve problems• Learn from our outcomes -- what worked and what didn’t

Be The BRAND

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6. TYPES OF BOTTOLING OPERATION:

A) FOBO – Franchised owned bottling operations.

B) COBO – Company owned bottling operations.

Another type is – contract packaging operations which is least type.

LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

Franchised production model

In 1899, it franchised its bottling operations in the U.S., growing quickly to

reach 370 franchisees by 1910.The company operates a

franchised distribution system dating from 1889 where

The Coca-Cola Company only produces syrup concentrate which is then sold to

various bottlers throughout the world who hold an exclusive territory.

The company produces concentrate, which is then sold to licensed Coca-Cola

bottlers throughout the world. The bottlers, who hold territorially exclusive con-

tracts with the company, produce finished product in cans and bottles from the

concentrate in combination with filtered water and sweeteners. The bottlers then

sell, distribute and merchandise Coca-Cola to retail stores and vending ma-

chines. Such bottlers include Coca-Cola Enterprises, which is the largest single

Coca-Cola bottler in North America and Western Europe. The Coca-Cola Com-

pany also sells concentrate for soda fountains to major restaurants and food

service distributors.

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In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces

(or produce) syrup concentrate which is then sold to various bottlers throughout

the world who hold a Coca-Cola franchise. Coca-Cola bottlers, who hold terri-

torially exclusive contracts with the company, produce finished product in cans

and bottles from the concentrate in combination with filtered water and sweet-

eners. The bottlers then sell, distribute and merchandise the resulting Coca-Cola

product to retail stores, vending machines, restaurants and food service distribu-

tors.

One notable exception to this general relationship between TCCC and bottlers is

fountain syrups in the United States, where TCCC bypasses bottlers and is re-

sponsible for the manufacture and sale of fountain syrups directly to authorized

fountain wholesalers and some fountain retailers.

The Coca-Cola Company only produces a syrup concentrate, which it sells to

bottlers throughout the world, who hold Coca-Cola franchises for one or more

geographical areas. The bottlers produce the final drink by mixing the syrup

with filtered water and sweeteners, and then carbonate it before putting it in

cans and bottles, which the bottlers then sell and distribute to retail stores,

vending machines, restaurants and food service distributors.

The Coca-Cola Company owns minority shares in some of its largest franchises,

like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling

Company (CCHBC) and Coca-Cola FEMSA, but fully independent bottlers

produce almost half of the volume sold in the world. Independent bottlers are

allowed to sweeten the drink according to local tastes

The bottling plant in Skopje, Macedonia, received the 2009 award for "Best

Bottling Company"

Indian History

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India is home to one of the most ancient cultures in the world dating back over

5000 years. At the beginning of the twenty-first century, twenty-six different

languages were spoken across India, 30% of the population knew English, and

greater than 40% were illiterate. At this time, the nation was in the midst of

great transition and the dichotomy between the old India and the new was stark.

Remnants of the caste system existed alongside the world’s top engineering

schools and growing metropolises as the historically agricultural economy

shifted into the services sector. In the process, India had created the world’s

largest middle class, second only to China.

A British colony since 1769 when the East India Company gained control of all

European trade in the nation, India gained its independence in 1947 under

Mahatma Ghandi and his principles of non-violence and self-reliance. In the

decades that followed, self-reliance was taken to the extreme as many Indians

believed that economic independence was necessary to be truly independent. As

a result, the economy was increasingly regulated and many sectors were

restricted to the public sector. This movement reached its peak in 1977 when the

Janta party government came to power and Coca-Cola was thrown out of the

country.

In INDIA

Coca-Cola was the leading soft drink brand in India until

1977 when it left rather than reveals its formula to the

government and reduces its equity stake as required under the Foreign

Exchange Regulation Act (FERA) which governed the operations of foreign

companies in India. After a 16-year absence, Coca-Cola returned to India in

1993, cementing its presence with a deal that gave Coca-Cola ownership of the

Page | 28

nation's top soft-drink brands and bottling network. Coke’s acquisition of local

Popular Indian brands including Thumps Up (the most trusted brand in

India21), Limca, Maaza, Citra and Gold Spot provided not only physical

manufacturing, bottling, and distribution assets but also strong consumer

preference. This combination of local and global brands enabled Coca-Cola to

exploit the benefits of global branding and global trends in tastes while also

tapping into traditional domestic markets.

Leading Indian brands joined the Company's international family of brands,

including Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product

range. In 2000, the company launched the Kinley water brand and in 2001,

Shock energy drink and the powdered concentrate Sunfill hit the market. While

The Coca-Cola Company is a global company with some of the world's most

widely brands, the Coca-Cola business in India, as in each country where it

operates, is a local business.

After a 16-years absence, Coca-Cola returned to India in 1993. The Company's

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

Cola ownership of the nation's top soft-drink brands and bottling network.

Coca-Cola India has made significant investments to build and continually

improve its business in India, including new production facilities, wastewater

treatment plants, and distribution systems and marketing equipment

During the past decade, the Coca-Cola system has invested more than US$ 1 bil-

Page | 29

lion in India

Coca-Cola is one of the country's top international investors by 2003; Coca-Cola

India had won the prestigious Woodruff Cup from among 22 divisions of the

Company based on three broad parameters of volume, profitability, and quality.

In 2003, Coca-Cola India pledged to invest a further US$100 million in its opera-

tions

In India, we indirectly create employment for more than 125,000 people in related

industries through our vast procurement, supply and distribution system

Virtually all the goods and services required to produce and market Coca-Cola lo-

cally are made in India

The Coca-Cola sys-

tem in India com- prises

27 wholly-owned com-

pany-owned bot- tling

operations and an- other

17 franchisee-

owned bottling op- era-

tions.

A network of 29 contract-packers also manufactures a range of products for the

Company

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

includes 10-tonne trucks, open-bay three-wheelers that can navigate the narrow

alleyways of Indian cities, and trademarked tricycles and pushcarts.

The complete manufacturing process had a documented quality control and assur-

ance program including over 400 tests performed throughout the process.

Page | 30

We will collaborate creatively with those who sell our products in the mar-

ketplace, developing relationships built on mutual success, not only from our

brands, but also from our services.

Ranking: We own 4 of the world’s top 5 non-alcoholic sparkling beverage brands:

Coca-Cola, Diet Coke, Sprite and Fanta.

Page | 31

7. BUSINESS MODELS OF

Page | 32

Page | 33

8. COCA-COLA PRODUCTS

The Coca-Cola company offers a wide range of products to the customers

including beverages, fruit juices and bottled mineral water, The company is

always looking to innovate and come up with, either complete new products or

new ways to bottle or pack the existing drinks.

Brands of Coca-Cola

Coca-Cola   Zero®  has been one of the

most successful product launches in our history. In 2009,

we sold more than 600 million cases globally. Put into

perspective, that's roughly the same size as our total

business in Germany, one of our top 6 markets. As of

September 2010,Coca-Cola Zero is available in more than

130 countries.

Energy Drinks

For those with a high intensity approach to life,

Coca-Cola’s brands of Energy drinks contain

ingredients such as ginseng extract, guarana

extract, caffeine and B vitamins.

Juices / Juice drinks

We bring innovation to the goodness

of juice in Coca-Cola’s more than 2o

juices and juice drink brands, offering

Page | 34

both adults and children a nutritious, refreshing and flavourful beverages.

Soft Drinks

Coca-Cola’s dozens of soft drink brand

provides flavour and refreshment in a variety

of choices. From the original Coca-Cola to

most recent introductions, soft drinks f are both icons and innovations in the

beverage industry.

Sport Drinks

Carbohydrates, fluids and electrolytes

team together in Coca-Cola’s sport

drinks, providing rapid hydration and terrific taste for fitness-seekers at any

level.

Tea and Coffee

Bottled and Canned tea and coffees provide

consumer’s favourite drinks in convenient

take-anywhere packaging, satisfying both

traditional tea drinkers and today’s growing

coffee culture.

Water

Smooth and essential, our Waters and Water

beverages offer hydration in its purest form.

Page | 35

Other drinks

So much more than soft drinks , Coca-

Cola’s brands also include milk products, soup, and more so you can choose a

Coca-Cola product anytime, anywhere for nutrition, refreshment or other needs.

Products Of COCA-COLA INDIA

In the Cola Section:

In the Lemon Section:

In the orange section:

Page | 36

In the juice section:

In the Soda Water and Bottled Mineral Water Section:

In the Tonic Water Section:

In the Tea and Coffee section:

Page | 37

Page | 38

9. Management At a glance

Page | 39

Earnings of the Company

Page | 40

Performance Of The Company

10. VISION 2020

Page | 41

Page | 42

11.Company Overview

Bengal Beverages Pvt. Ltd.

Type: Franchisee Own Bottling Operation(FOBO)

Geographical Position: Near ‘Durgapur Toll Plaza’

Behind Durgapur Expressway,

Dankuni, Kolkata.

Bengal Beverages Private

Limited ( BBPL) was

established in 1984 and

presently a progressive

business house in West

Bengal. The group’s first

venture was a established at

Dankuni, Kolkata in the East

Indian state of West Bengal.

The Company is engaged in the business of bottling, marketing and distribution

of aerated water under franchise agreement with the Coca-Cola Enterprise,

India.

The Managing Director and Chair person of BBPL is Mr. S.R.Goyenka. The

organization held above five thousands employees covering 6 different

departments such as Sales, HR, Shipping Dept., Distribution etc. The GM of

Sales Department is Mr. Joydeb Mukherjee. BBPL’s bottles Coca-Cola’s various

products such as Thums up, Limca, Maaza, Sprite, Nimbu Fresh, Fanta and

Page | 43

Kinley mineral water of various quantity.

ORGANIZATIONAL STRUCTURE

Page | 44

CEO

GENERAL MANAGER

VICE PRESIDENT

RED HEAD DEPUTY GM

SGA MANAGER SALES MANGER

MARKET RESEACH EXECUTIVE

MARKETING MANAGER

AREA SALES MANAGER

SR. SALES EXECUTIVE

REGIONAL EXECUTIVE

TEAM LEADER

MARKET DEVELOPER

SALESMAN

12. VISIT TO PLANT AND UNDERSTANDING OPERATIONS IN

THE PLANT

The company has mega Greenfield bottling plants for filling soft drinks located at

Dankuni, Near Durgapur Toll Plaza, behind Durgapur expreesway, WB. India.

MANUFACTRURING PROCESS

Wa-

ter

is

re-

ceived from the 300 ft. tube-well and it passes through the water treatment

plant, further passing through the sand filter and the activated carbon filter, so as

to attain pure cleansed water.

Page | 45

In the syrup room, the concentrate received from another bottling plant situated

at Pune, is blended with the sugar syrup.

Once both the water and the final syrup are ready, they are both mixed together

and sent to the carbonator section where Carbon Dioxide is added to the mixture

to form the final product.

On the other hand, simultaneously, the returnable glass bottles are depalletized,

inspected and washed for the purpose of filling in the final product in it. This

step does not take place in the PET bottle line as the bottles once used are dis-

posed.

The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in

case of PET bottles), labeled and cased in order to be sent into the warehouse

for distribution

INGREDIENT DELIVERY

SWEETENER

Team of professionals, work on selecting, auditing, sampling, testing, approving

and then authorizing the sugar suppliers and the list of such authorized suppliers

with approved sugar lots and along with the certificate of analysis are sent

across to all the bottling unit for procurement.

SECRET FORMULA

Created in special concentrate plants, its

delivered held and used under strict controls

to maintain its integrity and security. Each

unit of concentrate is especially identifiable to

allow the “History” of each component to be

researched at any stage of production, storage

Page | 46

or use.

CO2 FORMULA

When delivered to the plant, co2

comes in cylinders for easy delivery

and storage.

In essence co2 a colorless and odorless gas

that provides the “Fizz” for our

beverages.

WATER

Since water is a key component to all our beverages, its quality is critical. And

since public water quality varies around the world, each plant further treats the

water it uses. This means that before water is added to any of the beverages, its

rigorously filtered and cleansed.

MATERIALS

Ingredients are not the only things delivered to the plant, other materials such as

bottles, cans, labels and packaging are also delivered. Coca cola plants use

refillable glass bottles (RGB) in the production process. When bottles are

delivered to the plant, they are carefully inspected to ensure that they meet the

exacting standards. Once these have

passed initial inspection, they move on

to be washed and rinsed.

WASHING AND RINSING

To ensure quality, each bottle is washed,

sanitized and rinsed before being filled.

Page | 47

While this sounds simple, the actual steps can differ by bottling plant. In Coca

cola plants use refillable glass bottles. To ensure they meet the cleanliness

standard of the company, bottles are first hit with pre-rinse jets which remove a

dirt or debris. They are then soaked in a high temperature deep cleaning solution

that removes any remaining dirt and sanitizes them. The bottles then move to

the “Hydro wash” where they are washed again with a deep cleaning pressure

spray.

MIXING AND BLENDING

H2O AND SUGAR

Mixing and blending begins with the steps of mixing pure water with refined

sugar, which creates simple syrup. The

syrup is then measured for the correct

amount of sugar.

H2O AND SYRUP

With the syrup nearing its final state, it is

mixed with pure water, creating the

finished carbonated beverage. However,

the water and syrup must be mixed in

right ratio.

Page | 48

This is done by the beverage proportioning equipment. It accurately measures

the correct ratio for each and sends this mixture to the carbonator.

CO2 ADDING

Adding CO2 or carbon dioxide gas, it

is the final touch that carbonates the

beverages, CO2 not only give our

beverages their effervescent zest but

it also adds to the distinctive and

familiar taste everyone has come to

expect from our beverages.

CAPPING

Once filled, bottles are then capped.

Company uses different bottles, glass

bottles are usually topped with a

metal. Each cap type then moves through different parts of the machine which

ensures each cap stays scratch free and is in the right position to be precisely

placed on the bottle. The process actually stops if the detector doesn’t find a

closure. If the bottle cap isn’t just right, the beverages can become flat or be

affected in other ways. If this happens the bottle is discarded.

CODING

The bottle is now ready to be coded.

Each one of the beverages is marked

with a special code that identifies

specific information about it. The

codes simply identify the data the

Page | 49

beverages was bottled. These codes identify the date, time, batch no. and the

MRP.

INSPECTION

Company inspects bottles at

many points during the

process. With the refillable

bottles, it happens when they

are first brought into the plant.

They are also inspected after

they are washed and again after they are filled. Inspectors look for external

bottle imperfections and make sure each bottle has the right amount of

beverages. Even after filling, the plant samples bottles for analysis in its lab to

ensure quality is up to standards.

PACKAGING

Page | 50

Once the filled beverages have passed final inspection, they are ready to be

packaged for delivery.

WAREHOUSING AND DELIVERY

In order to make sure the freshest beverages possible get to you, each

warehouse must efficiently manage the thousands of beverages cases produce

each day. From the warehouse, beverages are loaded onto the distinctive trucks.

Page | 51

BRANDS IN INDIA:

Page | 52

13. PRODUCTS OF BBPL

THUMPS- UP is a leading carbonated soft drink and most trusted

brand in India. Originally introduced in 1977, Thums Up was

acquired by The Coca-Cola Company in 1993.

 Thums Up is known for its strong, fizzy taste and its confident,

mature and uniquely masculine attitude. This brand clearly seeks

to separate the men from the boys.

RGB PET Can

200 ml, 300 ml250ml,400ml,600m

l 1.2L,1.25L,2L330 ml

Internationally, FANTA - The 'orange' drink of The Coca-

Cola Company, is seen as one of the favorite drinks since

1940's. Fanta entered the Indian market in the year 1993.

Over the years Fanta has occupied a strong market place and

is identified as "The Fun Catalyst".

Perceived as a fun youth brand, Fanta stands for its vibrant

color, tempting taste and tingling bubbles 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.

RGB PET Can

200 ml, 300ml 250ml,400ml,600ml 330 ml

Page | 53

1.2L,1.25L,2L

World's favorite drinks, the most valuable brand and the most recognizable

word across the world after OK.

COCA-COLA returned to India in 1993 and

over the past ten years has captured the

imagination of the nation, building strong

associations with cricket, the thriving cinema

industry, music etc. Coca-Cola has been very

strongly associated with cricket, sponsoring the World Cup in 1996 and various

other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties.

Coca-Cola's advertising campaigns “Jo Chaho Ho Jaye” and “Life ho to Aisi”

were very popular and had entered the youth's 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 pricing initiative together with

improved distribution ensured that all brands in the portfolio grew leaps and

bounds.

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

Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern

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

Khan and Hrithik Roshan.

RGB PET Can

Page | 54

200 ml, 300 ml250ml,400ml,600m

l 1.2L,1.25L,2L330 ml

Lime n' lemony Limca , the drink that can cast a tangy refreshing spell on any-

one, anywhere. Born in 1971, Limca has been the original thirst choice, of mil-

lions of consumers for over 3 decades. The brand has been displaying healthy

volume growths year on year and Limca continues to be the leading flavors soft

drink in the country.

The sharp fizz and lemony bite combined with the single minded positioning of

the brand as the ultimate refresher has continuously strengthened the brand fran-

chise. Limca energizes refreshes and transforms. Dive into the zingy refresh-

ment of Limca and walk away a new person.

RGB PET Can

200 ml, 300 ml250ml,400ml,600m

l 1.2L,1.25L,2L330 ml

Diet Coke was born in 1982 and quickly became 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

Page | 55

Coca-Cola light in other countries, it's now the No. 3 soft drink in the world.

It's the drink for people who want no calories, but plenty of taste. Ad campaigns

around the world for Diet Coke share a playful, sophisticated and fun-loving at-

titude.

Maaza was launched in 1976. Here was a

drink that offered the same real taste of fruit juices and was available through-

out the year.

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

the fruit drink category.

Over the years, brand Maaza 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". Consumers regard Maaza as

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 love its

taste. The campaign builds on the existing equity of the brand and delivers a rel-

Page | 56

Can

330 ml

evant emotional benefit to the moms rightly captured in the tagline "Yaari Dosti

Taaza Maaza".

RGB Tetra pack PET

200ml,300ml 200 ml250ml,400ml.,600ml,1.2

L

Worldwide Sprite is ranked as the No. 4 soft

drink &is sold in more than 190 countries.

In India, Sprite was launched in year 1999 & today it has grown to be one of the

fastest growing soft drinks, leading the Clear lime category.

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

youth, Sprite has stood for a straight forward and honest attitude. Its clear crisp

refers hing taste encourages the today's youth to trust their instincts, influence

them to be true to who they are and to obey their thirst.

Page | 57

RGB PET Can

200 ml, 300 ml250ml,400ml,600ml

1.2L,1.25L,2L330 ml

‘’Orange juice with real orange pulp” with this slogan, Coca

cola launched its minute maid brand of orange juices for the

first time in the country at Hyderabad. Though Coca cola India

had in its portfolio the highly successful Maaza brand in the

juices segment (which it got from the chouhans), this is the first time the com-

pany is introducing some of the products from its own Minute maid portfolio.

The roll out of the naturally refreshing orange beverage with real pulp has been

designed to extend the Company’s market leadership in the juice segment and

with this launch; it is expected to further extend its leadership.

PET

400ML,1.25 L

Water is thirst quencher that refreshes, life giving force that washes all the

toxins away. A ritual purifier that cleanses, purifies, transforms. Water the most

basic need of life, the very sustenance of life, a celebration of life itself. The

importance of water can never be understated. Particularly in a nation such as

Page | 58

India where water governs the lives of the millions, be it as part of everyday

rituals or as the monsoon which gives life to the sub-continent.

Kinley water understands the importance and value of this life giving force.

Kinley water thus promises water that is as pure as it is meant to be. Water you

can trust to be truly safe and pure. Kinley water comes with the assurance of

safety from the Coca-Cola Company. That is why we introduced Kinley with

reverse-osmosis along with the latest technology to ensure the purity of our

product. That's why we go through rigorous testing procedures at each and

every location where Kinley is produced.

Because we believe that right to pure, safe drinking water is fundamental.

BCG (BOSTON CONSULTING GROUP) APPROACH

In the BCG approach, a company classifies all its Bus according to the growth

share matrix. Coke is one of the main product lines of the Coca Cola Company.

It is the one which is giving maximum revenues to it by different products in

this line. Here we have classified some of its major products in the BCG matrix

on the basis of their fame and liking of the people.

Page | 59

Stars - Coke, Limca ? – Kinley, Diet coke,

Sprite, Nimbu fresh, Pulpy

orange

Cash cows - Fanta,

Thumps up

Dogs - Kinley soda

Michael Porters Five Force Analysis

Page | 60

Page | 61

14. SWOT ANALYSIS

SWOT analysis is a basic, straightforward model that provides direction and

serves as a basis for the development of marketing plans. It accomplishes this

by assessing an organizations Strength (what an organization can do) and

Weakness (what an organization can not do) in addition to Opportunities

(potential favorable conditions for an organization) and Threats (potential

unfavorable condition for an organization). SWOT analysis is an important step

in planning and its value is often underestimated despite the simplicity in

creation. The role of SWOT analysis is to take the information from the

surrounding and separate it form internal issues (strength and weaknesses) and

external issues (opportunities and threats). SWOT analysis assists the firm in

accomplishing its objectives (strength or opportunity) and overcoming the

obstacles (weakness or threats).

Page | 62

Better network – covers whole of the city.

Brand recognition – brand image among customers

Product availability – coca cola has distributors all

over India so the product is regularly supplied to its

outlets, Maximum market share

Brand equity – high equity in the market.

Advertisement policy – CocaCola Company en-

dorsed with famous personalities like Aamir Khan,

Hrithik Roshan, Akshya Kumar, Priyanka Chopra,

Kareena Kapoor and many more.

Bottling plants – there are 29 bottling plants in In-

dia. These plants are company owned and not fran-

chised like Pepsi.

Promotional schemes – to activate sales company is

providing Umbrellas, Chairs, Tables, racks, flanges, vis-

icooler & glasses.

People Reliance on Quality of our Product and

Brand.

Knowledge Regarding Competitor

STRENGTH

Page | 63

Customer feedback system is not effective.

Product availability – Distributors give products to spe-

cific retailers only when they have limited due to low pro-

duction.

CANS are not available.

This year Pepsi giving hard time to coca cola due to strong

relationship with retailers.

Coca-Cola giving less schemes and incentives to its retail-

ers then Pepsi.

Customer demand is augmented day by day, which is not

satisfied well on time.

Retailers complain for irregular visit of distributors.

Promotional schemes – Schemes are not available to all re-

tailers.

Greater opportunity in rural areas where coca cola

CAN gain a substantial base.

Company should give more number of schemes.

Improvement in distribution channel.

70% of total population lies in rural area, and market

penetration of soft drink is only 12% hence there is

greater scope of increasing revenue of the coca cola com-

pany.

Covering greater institutional areas as younger genera-

tion gets much fascination out of such beverages

Coca cola can create more monopoly outlets by giving

heavy discounts as brand image and quality speaks itself.

Opening new outlets in convent schools, Hotels and multi

activity channels ,as more urbanization

Improvement in distribution channel and in bottling

plant.

In the present scenario can come up with more verities in

the fruit drink along with more flavours.

WEAKNESSE

S

OPPORTUNIT

Y

OPPORTUNIT

Y

Page | 64

Threat from Competitors as they give offers at

cheaper rates than coca cola.

Its too seasonal

Preference of juices and energy drinks over cold

drinks

May lose the market share to its competitor, if

they don’t look upon the demands of retailers

who ultimately sell product to the end customer.

Impulse customer’s bye what ever is in the offer,

so company should give offers regularly

Retailers are more inclined towards Pepsi as bet-

ter services and good relationship are being made

by them.

Lack of adequate new trends.

THREATS

Future Plan

15. COMPARATIVE POSITIONS

COMPETITOR ANALYSIS

Direct Competitor Comparison  

KO DPS NSRGY.PK PEP Industry

Market Cap: 154.07B 7.75B 198.64B 98.23B 736.47M

Employees: 139,600 19,000 281,000 294,000 3.96K

Qtrly Rev Growth (yoy): 46.80% 4.10% N/A 13.70% 14.30%

Revenue (ttm): 42.17B 5.78B 132.43B 62.43B 1.53B

Gross Margin (ttm): 61.76% 59.13% 57.20% 54.03% 42.13%

EBITDA (ttm): 11.50B 1.23B 21.16B 12.58B 207.70M

Operating Margin (ttm): 23.02% 17.64% 13.42% 16.07% 9.66%

Net Income (ttm): 12.52B 542.00M 11.11B 6.31B N/A

EPS (ttm): 5.37 2.35 12.82 3.93 0.59

P/E (ttm): 12.50 15.19 4.76 15.79 17.08

PEG (5 yr expected): 1.90 1.49 3.10 1.68 1.49

P/S (ttm): 3.69 1.36 1.53 1.60 1.31 

Page | 65

DPS = Dr Pepper Snapple Group, Inc.NSRGY.PK = NestlPEP = Pepsico, Inc.Industry = Beverages - Soft Drinks

MARKET SHARE (Brands) -------

Sale of (CSD) Carbonated Soft drinks Cases (in billions)

The volume of the U.S. CSD business declined -0.5% in 2010, to a total of about 9.36 bil cases. That is better than the -2.1% decline in 2009. The CSD category in the U.S. last grew in 2004. With the volume declines of the last six years, the category's volume is back down to about where it was in 1996, eliminating years of growth (right chart page 2). As shown by the left chart on page 2, the CSD industry has moved from roughly +3% growth in the 1990's to varying rates of decline. BD's CSD data includes carbonated energy drinks.

Top-10 Brands:

Page | 66

Two diet brands -- Diet Mt. Dew and Diet Dr. Pepper -- posted volume growth rates in excess of +5%. Diet Coke, though down -1%, moved ahead of regular Pepsi in the brand rankings and is now the #2 brand. Pepsi's volume was down -4.8%. Beyond Diet Mt. Dew and Diet Dr Pepper, four other top-10 brands posted volume growth: Dr Pepper, Sprite, Mt. Dew and Fanta. The two big co-las -- Coke and Pepsi -- continued to decline: Coke down -0.5% and Pepsi down -4.8%. Pepsi fell below 1 bil cases in 2008, for the first time in decades. Just below the top-10, Coke Zero grew +17.5% to 136.4 mil cases. It is the #11 brand, but it is still far from being a top-10 brand in this all-channel data. Given the strong performance of Diet Mt. Dew, Diet Dr Pepper and Coke Zero, BD estimates that the diet part of the U.S. CSD business gained share in 2010 and is now more than 30% of the entire category.

Top Companies:

Coca-Cola Co's market share was up slightly last year on volume which was down slightly. Coke's CSD volume decline of -0.5% reflected much better performance than in 2009 when it was down -3.9%. PepsiCo lost both share and volume last year. PepsiCo's CSD volume was down -4.8%, about the same as its -5% decline in 2009. Dr Pepper Snapple in 2010 posted a CSD volume increase of +1.4%; in 2009, it grew +4.8%. It benefited last year from strong performance of Dr Pepper in fountain; regular Dr Pepper was up +2.8%.

16. FINANCIAL ANALYSIS

COMPARATIVE BALANCESHEET OF CONSEQUETIVE YEARS

Period Ending

Dec 31, 2010 Dec 31, 2009 Dec 31, 2008

Page | 67

Assets

Current Assets

Cash And Cash Equivalents 8,379,000   6,959,000   4,701,000  

Short Term Investments 2,820,000   2,192,000   278,000  

Net Receivables 4,430,000   3,758,000   3,090,000  

Inventory 2,650,000   2,354,000   2,187,000  

Other Current Assets 3,162,000   2,226,000   1,920,000  

Total Current Assets 21,579,000   17,551,000   12,176,000  

Long Term Investments 7,585,000   6,755,000   5,779,000  

Property Plant and Equipment 14,727,000   9,561,000   8,326,000  

Goodwill 11,665,000   4,224,000   4,029,000  

Intangible Assets 15,244,000   8,604,000   8,476,000  

Accumulated Amortization -   -   -  

Other Assets 2,121,000   1,976,000   1,733,000  

Deferred Long Term Asset Charges -   -   -  

Total Assets 72,921,000   48,671,000   40,519,000  

Liabilities

Current Liabilities

Accounts Payable 9,132,000   6,921,000   6,152,000  

Short/Current Long Term Debt 9,376,000   6,800,000   6,531,000  

Other Current Liabilities -   -   305,000  

Total Current Liabilities 18,508,000   13,721,000   12,988,000  

Long Term Debt 14,041,000   5,059,000   2,781,000  

Other Liabilities 4,794,000   2,965,000   3,401,000  

Deferred Long Term Liability Charges 4,261,000   1,580,000   877,000  

Minority Interest 314,000   547,000   -  

Negative Goodwill -   -   -  

Total Liabilities 41,918,000   23,872,000   20,047,000  

Stockholders' Equity

Misc Stocks Options Warrants -   -   -  

Redeemable Preferred Stock -   -   -  

Preferred Stock -   -   -  

Common Stock 880,000   880,000   880,000  

Retained Earnings 49,278,000   41,537,000   38,513,000  

Treasury Stock (27,762,000) (25,398,000) (24,213,000)

Capital Surplus 10,057,000   8,537,000   7,966,000  

Other Stockholder Equity (1,450,000) (757,000) (2,674,000)

Page | 68

Total Stockholder Equity 31,003,000   24,799,000   20,472,000  

Net Tangible Assets 4,094,000   11,971,000   7,967,000  

Currency in USD.

INCOME STATEMENT

Period Ending Dec 31, 2010 Dec 31, 2009 Dec 31, 2008

Total Revenue 35,119,000   30,990,000   31,944,000  

Cost of Revenue 12,693,000   11,088,000   11,374,000  

Gross Profit 22,426,000   19,902,000   20,570,000  

Operating Expenses

Research Development -   -   -  

Selling General and Administrative 13,977,000   11,671,000   11,774,000  

Non Recurring -   -   350,000  

Others -   -   -  

Total Operating Expenses -   -   -  

Operating Income or Loss 8,449,000   8,231,000   8,446,000  

Income from Continuing Operations

Total Other Income/Expenses Net 5,502,000   289,000   305,000  

Earnings Before Interest And Taxes 14,976,000   9,301,000   7,877,000  

Page | 69

Interest Expense 733,000   355,000   438,000  

Income Before Tax 14,243,000   8,946,000   7,439,000  

Income Tax Expense 2,384,000   2,040,000   1,632,000  

Minority Interest (50,000) (82,000) -  

Net Income From Continuing Ops 12,834,000   7,605,000   5,807,000  

Non-recurring Events

Discontinued Operations -   -   -  

Extraordinary Items -   -   -  

Effect Of Accounting Changes -   -   -  

Other Items -   -   -  

Net Income 11,809,000   6,824,000   5,807,000  

Preferred Stock And Other Adjustments -   -   -  

CASH FLOW

Period Ending

Dec 31, 2010 Dec 31, 2009 Dec 31, 2008

Net Income 11,809,000   6,824,000   5,807,000  

Operating Activities, Cash Flows Provided By or Used In

Depreciation 1,443,000   1,236,000   1,228,000  

Adjustments To Net Income (4,140,000) 608,000   1,224,000  

Changes In Accounts Receivables -   -   148,000  

Changes In Liabilities -   -   (734,000)

Changes In Inventories -   -   (165,000)

Changes In Other Operating Activities 370,000   (564,000) 63,000  

Total Cash Flow From Operating Activities 9,532,000   8,186,000   7,571,000  

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (2,215,000) (1,993,000) (1,968,000)

Investments (679,000) (2,152,000) (240,000)

Page | 70

Other Cash flows from Investing Activities (1,511,000) (4,000) (155,000)

Total Cash Flows From Investing Activities (4,405,000) (4,149,000) (2,363,000)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid (4,068,000) (3,800,000) (3,521,000)

Sale Purchase of Stock (1,295,000) (854,000) (493,000)

Net Borrowings 1,848,000   2,363,000   29,000  

Other Cash Flows from Financing Activities 50,000   (2,000) -  

Total Cash Flows From Financing Activities (3,465,000) (2,293,000) (3,985,000)

Effect Of Exchange Rate Changes (166,000) 576,000   (615,000)

Change In Cash and Cash Equivalents 1,496,000   2,320,000   608,000  

Currency in USD.

Page | 71

17. QUESTIONAIRE FOR PRIMARY DATA

Sl. No. Date. / /2011

Consumer’s/ Retailer’s Name - ____________________________________Name of the Enterprise-________________________________Contact

No.______________ Address_________________________________________________

Age- _________ Gender- M / F

1. Are you a regular consumer of Coca-Cola? a. Yes b. No ⃝� ⃝�2. Do you know the other cold-drink brands by coca-cola? a. Yes b. No c. may be ⃝� ⃝� ⃝�

d. partially ⃝�3. How many brands do you know ?

Coca-col Thumbs u Sprit Maaz Fant Limc a⃝� p⃝� e⃝� a⃝� a⃝� a⃝�Pepsi 7up Mountain Dew Slice Mirinda ⃝� ⃝� ⃝� ⃝� ⃝�

4. Which is your favourite soft drink? Coca-Col Peps Others __________a⃝� i⃝� ⃝�a. If Coke then which brand? Coca-col Thumbs u Sprit Maaz Fant a⃝� p⃝� e⃝� a⃝� a⃝�

Limc a⃝�b. If Pepsi which brand? Pepsi 7up Mountain Dew Slice Mirinda ⃝� ⃝� ⃝� ⃝� ⃝�c. If Pepsi, Have you ever tried coke product YE / N S⃝� O⃝�d. If Yes, then what made you change over from Coke to Pepsi? --a)Tast b) Flae⃝� -

vo c) Celebrit d)Advertisement e) Brand loyalt f) Availabilitr⃝� y⃝� ⃝� y⃝� y⃝�5. Which size you prefer more? a)200m b) 300ml c) Pet bottle (500ml) d) Pet bottlel⃝� ⃝�

(2L) e)Ca ⃝� n⃝�6. Do you think rate of 300ml bottle which is available at Rs.12 is worth it? a) Ye s⃝�

b) No⃝�7. Do you find the display attractive of … a)Coke b) Pepsi c) Sam ⃝� ⃝� e⃝�8. Source of supply of soft drink ------ a)Grocery stor b) Confectionerie c) Eating &e⃝� s⃝� ⃝�

d) Others⃝�9. Have you ever experience that, you asked for the Coke product and vendor supplied

you with Pepsi product? a)Ye b) Ns⃝� o⃝�a. If yes, did you buy that Pepsi product ?----- Yes b) N ⃝� o⃝�

10.Which package sells more:? a)300ML b) PET c) SAM ⃝� ⃝� E⃝�11.Which 300ml RGB brand you are more satisfied to sell? a)Pepsi b) ⃝�

Coca col c) Sama⃝� e⃝�Page | 72

a. If PEPSI, why? ---- a)More margin/schemes than cok c) Brand e⃝�

loyalt c)Service d) Supply⃝� s⃝� y⃝�12.Reaction towards 300ml RGB, are you happy to sell? ----- a) Satisfied ⃝�

b) Mix response c) Not satisfie ⃝� d⃝�a. If Not satisfied, what problems you are facing?-------- a)Margin is

less then Pet bottles b) Space proble c)Breakage / Replace ⃝� m⃝� -

ment proble d) Chang e)Sometime you need stock but due to m⃝� e⃝�empty cant buy it⃝�

13. Do you think 300ML RGB should be replaced with 300ML Pet bottle? a)Ye b)Ns⃝� o⃝�14. Do you think rate of 300ml bottle which is available at Rs.12 is worth it? a)Yes b) ⃝�

No⃝�Note::: Small sized questions are for consumers only, and all with the rest are for retailers

Page | 73

18. Primary Findings and Analysis

The variables relevant for analysis of data were collected. Various analysis and

interpretations have been shown in graphical and tabular form.

Analysis of Coke Lovers (Consumers)

This graph makes a distinction between the number of males and number

of females with whom sampling was conducted. The percentage is almost

the same in both categories.

This graph depicts the total number of consumers divided on the basis of

the age group they belong to. The age of consumers included in the sam-

pling activity ranged from 10 years. Accordingly the age groups 10 to 20,

20 to 30, 30 to 40, 40 to 50, 50 to 60 and 60 above.

Page | 74

Page | 75

1. Favorite soft-drink?

a) Coca cola b) Pepsi

c) others

The following graph denotes the feedback of consumers irrespective of the age

group they belong to or their gender. This is an overall perception of the con-

sumers towards their Favorite soft drink. Coke has larger share then Pepsi in

MEMARI.

I. If Coke which brand

a) Thumps-up b) Sprite c) Coca-Cola d) Maaza

e) Limca f) Fanta

It was found that out of

100 correspondences 47

of them prefer Coke.

From these

47

Page | 76

correspondences favorite brand of Coke was asked. The outcome

of survey is shown in graph. Sprite is preferred by youth and

Maaza by all age group but more famous among old people.

II. If Pepsi which brand

a) Dew b) 7-up c) Pepsi d) Slice

e) Mirinda (lemon) f) Mirinda (orange)

It was found that

out of 100 corre-

spondences 40 of

them prefer 7 up.

From these 40

correspondences

favorite brand of

Dew was asked.

The outcome of

survey is shown in

graph. 7 up and Dew are most selling brands.

If Pepsi, Have you ever tried coke product YES / NO

i) If Yes, then what made you change over from Coke to Pepsi

a) Taste b) Flavor c) Celebrity

d) Advertisement e) Brand loyalty f) Availability

Page | 77

40 correspondences who said that

their favorite soft drink is Pepsi were

asked that have they tried Coke and all

of them said yes, they were again

asked what made them to choose

Pepsi instead of Coke, common an-

swer was taste.

Advertisement also had great impact.

2. Which size you prefer more

a) 200ml b) 300ml c) Pet bottle (500ml) d) Pet bottle (2L) e) Can

From 100

respondent 43 people like 300 ml and 28 people like 500 ml pet, 8 people pre-

ferred cans and rest 2l and 200ml.Pet bottles are more famous among youth.

According to survey done Pie chart shows which brand package size are pre-

ferred by consumers.

Page | 78

3. Do you think rate of 300ml bottle which is available at Rs.12 is worth it?

a) Yes b) No

Out of 100 People 53 people said the

rate of 300ml is more then what it

should be keeping in mind the infla-

tion rate and 47 people said yes rate

of 300 ml is fine and 300ml RGB has

85% share in market when compared

with 200ml RGB, it clearly shows

that people want more while they want to spend less money.

4. Do you find the display attractive of

a) Coke b) Pepsi c) Same

27 people think that

Pepsi display is more

attractive than Coke

display and 44 said

Coke display is better

and 29 said both are

same neck to neck.

From this it can be seen

that companies spend

lot of money in adver-

tisements.

5. Source of supply of soft drink

Page | 79

a) Grocery store b) Confectioneries c) Eating & drinking d) Others

It was found that

source of supply of soft

drinks is more from

convenience than gro-

cery store or eating &

drinking hubs. It shows

that there are more con-

venience store in MEMARI, it is found that mostly grocery shop only keep Pet

bottles, they avoid RGB was it require lots of attention.

6. Have you ever experience that, you asked for the Coke product and ven-

dor supplied you with Pepsi product?

a) Yes b) No

Out of 100 respondents, it was coincidence that 50 people said YES and same

number of people said NO. From this it can be concluded that mostly vendors

sell those things which consumers doesn’t ask for..

i. If yes, did you buy that Pepsi product

a) Yes b) No

Page | 80

50 persons said that it

happened with them

that when they had

asked for Coke product

and vendor supplied

with Pepsi product in

that case another ques-

tion was asked

Did they buy that product?

36 people said YES they bought and 16 don’t. This shows the brand loyalty of 16

people with Coke.

7. Choose ONE you like most out of given TWO:

Following are the answer given by 100 respondents as they have to choose one out of

two given. Respondents choose which they liked the most.

With this it can be analyze, Brands of both companies has direct competition with

each other like Maaza competitor is Slice, Limca competitor is Mirinda Lemon

likewise Fanta with Mirinda orange, Sprite with 7-up and Coke with Pepsi

Page | 81

Analysis of Retailers

1.) TYPE OF SHOP:

a) Grocery b)Convenience c) Eating & Drinking

Page | 82

In survey al-

most equal number of

types of shops are cov-

ered, so that it will not fa-

vor any question that

been asked to any partic-

ular type of shop. 100

RGB Retailers has been

surveyed. From this it is

analyze that convenience shops are more in MEMARI than other two types of

shops.

2.) Which package sells more:

a) 300ML b) PET c) SAME

From 100 RGB retailers it

was asked which package

sells more in your shop, it

was found that Pet bottles

and RGB almost sells

equal in city. RGB sells

more because Pet bottle

mostly used in household

and RGB sells more at

E&D and convenience, these types of shops are more in the city.

3) Which 300ml RGB brand you are more satisfied to sell?

Page | 83

a) Pepsi b) Coca cola c) Same

50 retailers out of 100 are

more satisfied to sell Coke

then Pepsi and 30 retailers

are inclined towards Pepsi

and 20 are satisfied with

both. This shows that de-

mand of coke is more

that’s why vendors are sat-

isfied or in these 50 mo-

nopoly or discounted out-

lets are there of coke.

I. If PEPSI, why?

a) More margin/schemes than coke c) Brand loyalty

b) Services d) Supply

Out of 30 those who

are satisfied with

300ml RGB of Pepsi

were asked why Pepsi?

17 of them said more

margin then Coke

13 are more satisfied with Pepsi services than which Coke offered.Page | 84

4) Reaction towards 300ml RGB, are you happy to sell?

a) Satisfied b) Mix response c) Not satisfied

Out of 100 retailers

only 47 are satisfied

which less than 50%

of total outcome. Re-

tailers are facing

many problems by

selling glass bottle.

They prefer to sell

Pet bottles instead of

glass bottle. Glass bottle require lots of maintenance and it is also quite expensive

to refill glass bottle for companies.

I. If Not satisfied, what problems you are facing?

a) Margin is less then Pet bottles d) Space problem

b) Breakage / Replacement problem e) Change

c) Some-

time you need stock but due

to empty cant buy it

Space problem is mostly

faced by grocery store;

they are more interested

in pet bottles. Pet bottles

Page | 85

also give more margins and there are no issues of empty and breakage is also

minimized.

5) Do you think 300ML RGB should be replaced with 300ML Pet bottle?

Yes

No

Through internship I came to know about the problems that are being faced by

vendors regarding 300ml RGB. So I think of if glass bottle being replaced by pet

bottle.

6) Do you think rate of 300ml bottle which is available at Rs.12 is worth it?

a) Yes b) NO

Page | 86

74 retailers think the rate of 300ml RGB

bottle which is available at Rs.12 is

worth it keeping in mind the scenario of

inflation rate and rest 26 think that it is

not worth it.

19. AN ASSESMENT OF THE INTERNSHIP

Details of actual work undertaken

NEW DEALER ACTIVATION

Q. WHO IS OUR NEW DEALER?Ans. 1) Those who never sold our products,

2) those who sold product but ceased to transact order at least 3 years,3) who sales soft drinks but not our products.

NEW DEALER ACTIVATION SCHEMES

There are 5 types of schemes under which a new dealer could be authorised. These are....

1) Own Cooler Scheme : Through this scheme, new dealership could be given (those retailers who have own coolers) with 3 cases of empty bottles & plastic crates for free, no GOD(Glass bottle given on deposit) required. Tolal led amount for the retailer is 501 Rs. (Crates at 95 Rs. & Bottles at 3 Rs.; a crates carries 24 glass bottles.)

2) Ice Box Scheme: 2 cases of GOD required. Customer will be provided with a Ice Box for cooling purpose for free.

3) Pet Bottle Scheme: No free product is given and retailer must have own sufficient cooling unit.

4) OYA or Family Fridge Scheme: Dealership activated by giving a OYA or Family Fridge of “Haier Appliance Private Limited” of 210Lt. at the rate of 5870 Rs. With the subsidy of company BBPL of Rs. 1600 (from 3rd Sept. 2011 onwards; rate may be re-priced). Customer will get 4 cases of empty bottles for free under this scheme.

5) Existing Dealers with OYA: This is an extended scheme for existing dealers, basic scheme pattern is same as previous one and no free product should be given.

SALES MANAGMENT

Coca cola has its own management system which is a major tool that helps

management in problem solving and framing marketing strategy.

Followings are done in MEMARI during INTERNSHIP of 2 months.

MANAGEMENT

NEW DEALE ACTIVATION: looks upon new dealership outlet in area of sales

SPOKE ACTIVATION: looks upon Spoke distributors activation

OPERATION TEAM: looks after Market/Distributor’s primary and secondary sales

ACTIVATION TEAM ADVERTISING TEAM:Branding, Gift and other promotion management

Route Ridding was the first thing done during half months of 2 month internship.

In route riding the task was to go along with salesman in truck, the main motive of

route ridding is to see how orders being taken from vendors and different schemes

being told by salesman, schemes changes daily.

Through route ridding it came to know that outlets are classified in two categories

which are as follow -:

Based on Consumption pattern

OUTLETS OUTLETS

Consumption Volume

E&D: - This stands for Eating & Drinking outlets. Generally all the

RESTUARANTS, HOTELS, FAST FOOD come under this. Basically of two types,

E&D1,E&D2.

GROCERY: - This is a part of merchandising. Generally all the GENERAL stores

and GROCERY shops comes under this category. Basically of two types,

GROCERY1 & GROCERY 2.

CONVENIENCE: - Includes outlet which are small stores or shops, generally

accessible locality. There are often located along side busy roads. It includes STD,

PAN, CONFECTIONERY shop etc.

TRAVEL:- Those outlets at the nearest point of any travel spot or junction or on roadside. These a re of two types,TRAVEL1,TRAVREL2.

Other types are - SINGLE SCREEN CINEMA CHANNEL, RAILWAYS CHANNEL & MODERN TRADE (BIG BAZAR AND OTHER DEPARTMENTAL STORES)

Based on volume pattern

VOLUME

BRONZE SILVER GOLD DIAMOND PLATINUM

DIAMOND: - Those outlets are known as Diamond outlets where the annual sale of

Coca cola soft drinks is more than 800 crates.

GOLD: - Those outlets are known as Gold outlets where the sale is in between 500

crates to 800 crates per annum.

SILVER: - Those outlets are known as Silver outlets where the sale is in between

200 to 499 crates per annum.

BRONZE: - Those outlets are known as Bronze outlets where the sale is less than

200 crates per annum.

PLATINUM: - Those outlets are known as Platinum where the sales is more than

1100 carets per annum.

In two months internship another task was given to create market for all types of

RGB. Task was to go to vendors, tell them about the availability of the product is

there, which was not there earlier, and to convince the retailer to buy RGB coke

and other product’s RGB.

Strategies where made to sell coke, different scheme were given

Some areas surrounding MEMARI are AMC, AMC are the area like villages,

colonies etc. where lower middle class people resides. These area are operated by

distributors not directly by FOBO.

Following data show the order taken from the vendors in KALIBELE an AMC.

These above orders were mainly in consideration of 200 ml ,300 ml, as it was told

that the orders from this AMC are not there regarding 200 & 300ml.

No. of shops visited Order taken

15 RGB/PET– 42 cases

This was another task that was given on every Friday’s and Saturday’s in a week.

In this, task was to go along with MD (Market developer) and check out each outlet

under the area of Market developer. Main motive of market impacting are as follow

To see that if all products are available at that particular outlet or not,

If not then products are being made available to vendors.

To seek any new outlet yet to be discovered at any prime location.

To deal with new customers by encountering him with schemes and profits.

Submitting document to the authorized dealer for sanction and approval.

This was another very interesting task that was given. Main motive was to open new

outlets. In this REFREGIRATOR i.e. SGA (Sales Generating Asset) was to be

provided to the new outlet along with CRET BOTTLES OR RGB. Main focus for

opening new outlet was not only shop or restaurant, new outlet should be opened at

any potential area that could be feasible with terms and regulations. SGA should be

given to them by making them understand about the company’s responsibility and

support.

What I observed was many store were aware of the COKE and it’s market status.

Some were to kind to listen. But some were deflecting our words by comprising our

product and it’s return with other company’s product(mainly PEPSI).

Our aim was to satisfy them with the large view of COKE and it’s dominancy on the

market. The main object was to create a new customer to the company.

Development/ Improvement/Complaints Performa were made for the vendors. In this

all the complaints were registered which were facing by the outlet owners; this was

done to improve the services of Coca-Cola and to make development.

It was found that majority of share is of Coke in MEMARI nearly 20% and strangely

same percentage of owners i.e.20% are not satisfied with Coke, they have complaints

moreover they are happy to sell Pepsi instead of Coke. They just keep Coke because

of consumer demand else they are not satisfied.

Rests 80% who are satisfied are either monopoly counter of Coke or Discounted

outlets or has good relationship with the salesman.

Through this it was found that services of Pepsi are far better than Coke and margin

is also little higher in case of Pepsi.

Mostly complaints of Outlets are as follow:-

Replacement was not done of breakage, expired products, regarding Quality.

Margin is high in case of Pepsi as compare with Coke.

Stock of each brand packs are not available or given to specific outlets.

Visi-cooler problem not working well or require bigger Visi-cooler as formali-

ties has been done still nothing done.

Schemes were not given to them.

Alteration in order is obvious at the time of delivery.

EDSR was to get how much stock does the particular outlet has. In this to get the

mobile number of the owner so that daily message being send to the owner regarding

the Schemes, in Coke schemes changes everyday. It also helps to compare the stock

between Coke and Pepsi available at outlets.

Below is Performa which was needed to be filled up:-

Outlet Phone Visi Empty 500 2L Soda Cans Water

name no.

RGB Pet PET Pet

K

o

P

cKo Pc

K

o

P

c

K

o

P

c

K

oPc

K

o

P

c

K

o

P

c

SECTOR- EDSR DATE-

Performa need to be filled in numbers that how much stock does outlet has.KO – Coca-ColaPC – Pepsi

Pre-sell order was to get order one day prior of the delivery. Orders were taken from

the vendors one day before and delivery was given next day. This was done because

vendors were facing problems regarding the brand package size that are not available

when they want.

Orders were taken of all brand packages with main focus on Pet and Juices. There

were shortages of Pet, only some parts of the area are being supplied with all kind of

pet.

Vendors always gave complaint regarding stock, whether they required or not. So this

problem was solve out through pre-sell order.

20. CONCLUSION AND RECOMENDATION

Findings of the Study

In the due course of time of project, which lasted for 8 weeks, I got the chance of

visiting to many outlets and also interact with each and every person of those outlets

in MEMARI. By formal interaction with the dealers and retailers, I got to know

many things from the outlets. In this particular city Coca-cola has larger share than

Pepsi. But there are few mixed outlets too by few number, so to increase the market

share of Coca-cola it should tap all the mixed outlets. About 80% of market is owned

by it, yet more is expected to be achieved

Share of 300ML in restaurants and hotels of MEMARI is 69% whereas 2L

share is 21%; 500ml pet has 8% and cans have 2%.

Distribution channel is effective at present but in long run it needs to be up-

graded. Retailers in MEMARI Circle comes under direct operations and retail-

ers in small town in surrounding areas of MEMARI comes under indirect op-

erations.

The major competitor PEPSI is getting the market aggressively through its ser-

vices and high margin issues.

Retailer in some area revealed that they are not getting schemes i.e. distributors

are not providing schemes properly, basically in rural areas.

Minute maid Nimbo Fresh and 200ml RGB brand packages are getting popu-

larity.

Recommendations

I strongly believe that RGB(refill glass bottle) should be replaced with Pet bot-

tles of same size because it will solve out all the problems which are as

follow :-

I. For Retailers

a) Breakage

b) No empty bottles required to fill carat

c) No extra space required to keep the carat outside shop

II. For Company

a) To carry the empty carat back to manufacturing unit to refill again

b) Cost will be reduced Pet bottle are cheaper than Glass bottle

c) Process of rinsing and washing RGB bottle again will be eliminated

which will lead to less wastage of water.

Services of Pepsi are far better than Coke, good relationship with vendors,

solving any problem with in no time should be done.

Due to the current prices, an eyebrow raiser for some, the product could be

sold in packs of 2 or more and there could be a price reduction.

New flavours can be introduced into the market as early as possible consumers

were eager to know if the drink would come in more flavours, health drinks

like milk proteins content soft drink can be invented.

Younger generation are more interested in soft drinks , so new openings in in-

stitutional areas should be increased.

Use some proper methodology to provide the information about the schemes

directly to the retailers. Company has to try to sort out the personal misunder-

standings between distributors and retailers.

Time to think about the mineral water to some effective parts such as hospitals,

office and near stalls.

Limitations

Time and cost constraints were also there.

A Samples size of 100 has been use due to other work also done regularly

which was given to us by company.

The time period of study was only for three month so it was not possible to

cover all the areas and go into the depth of the problem and make analysis.

Chances of some biasness could not be eliminated.

Lastly, some amount of error exists in the data filling process because of the

following reasons.

Influence of others.

Misunderstanding of the concept.

Hurried filling of the questionnaire.

N:B Short form used in this report – RGB- Returnable Glass Bottle, GOD- Glass bottle given on Deposit,GWD- Glass bottle given without deposit, SKU- Stock Keeping Unit, RED- Right Execution Daily,

21. ILLUSTRATIONS & ANNEXURE

22. BIBILIOGRAPHY

Websites Visited:

http://www.thecoca-colacompany.com

http://www.coca-cola.com

http://www.ko.com

http://www.google.com

http://www.wikipedia.org

http://www.coca-colaindia.com

http://www.worldofcoca-cola.com

Beverage news

www.economictimes.indiatimes.com

www.forbes.com

www.beverage-digest.com