HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (Patna) AN INTERNSHIP REPORT For the award of the of PGDM DRY OUTLETS OF COCA-COLA
Nov 18, 2014
HINDUSTAN COCA-COLA
BEVERAGES PRIVATE LIMITED
(Patna)
AN INTERNSHIP REPORT
For the award of the of
PGDM
DRY OUTLETS OF COCA-COLA
2
A PROJECT
ON
“DRY OUTLETS OF COCA-COLA IN PATNA”
AT
HINDUSTAN COCA-COLA BEVERAGES PVT LTD.
SUBMITTED TO
SINHGAD INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR THE
AWARD OFPGDM
SUBMITTED BY
SHIVRAJ
UNDER THE GUIDENCE OF
PROF. R.R KENDRE
Sinhgad Institute of ManagementVadgaon (Bk)
PREFACE
The summer training programs are designed to give the practical knowledge of
corporate world. Training is usually meant for such vocations where advanced
theoretical knowledge is to be backed up by practical experience on the job and it is
because of this reason that summer training programs are designed. So, that the future
manger must be ready to take the future responsibilities.
It was exactly in this context that I was privileged enough to join coca cola- one of the
biggest brand in beverages in the world.
I achieved lots of experience and confidence over the past eight week which will help
me to take the future responsibility on my shoulder.
During this period, I was given to find out the “Dry outlets of coca-cola in Patna”.
In the training program I had tried my level best to arrange the work in systematic and
chronological way.
This endeavor work shall provide the coca cola marketing department, an idea about
market condition. Therefore it hoped with all sincerity that this work shall be of
definite use to the organization.
ACKNOWLEDGEMENT
Completing a task is never one effort. It is often the result of invaluable contribution
of number of individuals in a direct or indirect manner that helps in sharing a
marketing success.
This project is not the work of an individual, but all the faculty members of Sinhgad
Institutes of Management without whose guidance, suggestions and constructive
ideas, it give a final shape to the project.
I express my whole gratitude towards the management of Hindustan Coca Cola
Beverages Pvt. Ltd., Patna. For given me the opportunities to undergo my summer
project in a multinational concern of a great reports and allowing me to gain
invaluable with subsequent exposure to the modern business world.
I am very grateful to Mr. Subir Chatterji (Marketing Manager), Mr. Supratho Acharya
(Area Sales Manager), Raman Singh & Rajesh Ranjan (Sales Executive) who guided
me in my report. I further extend my thanks to all the employees for the appreciation
and cooperation given by them to help me in gathering information of the market
survey especially marketing developer (MD)
Finally I also indebted to my faculty members, parents, friends and family members
who have been a constant source of inspiration for whatever I am because of their
blessing.
INTRODUCTION
Today’s market is changing at incredible pace. Company operates in a Darwinian
market place where the principal of natural selection leads to “the survival of fittest”.
In additional to the globalization & technology changes we are also witnessing a
power shift form manufactures to
Gain retailers, a rapid growth & acceptance of store brands, new retail firms, growing
price and value sensitivity of consumers, a seemingly diminishing role for mass-
marketing and advertising and disconcerting erosion of brand loyalty. The changes are
dragging the companies instead of operating in defined market with a fixed number of
competitors and with a set of stable customer preference to a more volatile marketing
atmosphere-almost a war zone like situation with rapidly changing variable… like
competitors, technology, business laws, trades policies, customers, brand loyalty etc.
companies very often find themselves unprepared and ill-equipped to have a
competitive edge over its competitors especially then, when changes are even difficult
to be predicate precisely or accurately,
This makes the situation more difficult for the companies & organization as they are
not always in a position to adopt themselves and their activities to suit to the demands
of the changed scenarios.
Thus companies find themselves running in race where the road signs and rules keep
changing too frequently & there is no visible finish line, no concept of “permanent
win”. They simply have to keep racing in a direction to be the one, which the
customer, public and society want them to go into.
Today the customer is donning the king gown. He is more evolved than his
predecessors and has grown to enjoy the limelight. All company who wish to survive
& grow in the market needs to focus their attention & resources to woo & please the
“customer-the king”. That is why the customer finds an unperfected glare at himself.
The company’s all queuing up and bowing respectfully before him & presenting him
with their offerings.
So, consumer today has the advantages of plenty of products in every category. They
exhibit varying & diverse requirements for products/service-combination of quality
service. In the face of their vast choices, customers are gravitated to the offering that
best meet their individual needs & expectations. They will buy on the basis of their
perception of values.
Therefore, today’s winning company’s are those who succeed in satisfying, indeed
delighting their target customers. These companies see marketing as company-wise-
philosophy-not a separate function. Their marketing people define which customer
group & needs the company can profitably serve & how to serve them more
efficiently than competitors. These companies are marketing focused & customer
driven rather than solely product focused or cost driven. They pay extreme attention
to qualities & service to meeting and even exceeding customer’s expectation. They
complete vigorously, pursue efficiently & yet are responsive & flexible.
Perhaps, the basic change in marketing thinking is the paradigm shift from “pursuing
a sale” to “creating a customer”. Past marketing has been largely transaction oriented.
Today it is more relationship oriented. In addition to designing the best marketing mix
“to make a sale” there is growing emphasis on designing the best relationship-mix for
winning and keeping customer. Good customers are always an asset which, when well
managed & served will return a handsome lifetime income stream to the company. In
the intensely competitive market place, the company’s first order of business to retain
customer loyalty through continually satisfying there in a superior way.
Nevertheless , market must study/target consumer’s wants, perception, preference &
shopping & buying behavior. Such study will provide clues for developing new
products, product features, channels, message & other marketing mix element.
CONTENTS
Chapter 1
1.1 Executive Summary……………………………………………………..
…...02
Chapter 2
2.1 Introduction …...……………………………………………………….....
…..04
2.2 History and development…………………………………………..
……..…06
2.3 Company setup in India………. ………………………………………..
…..07
2.4 History of soft drink in
Bihar…………………………………………….......08
2.5 Coke plant in
Patna……………………………………………………….....10
2.6 Product and brands ...
…………………………………………………….....11
2.7 Organization chart ………………………………………………….........
….12
2.8 Mission & Vision ...
………………………………………………………....16
2.9 Value …..…………………………………………………………………....
17
2.10
Competitors……………………………………………………………….....18
2.11 Awards………………………………………….
………………………….....20
2.12
Customers…………………………………………………………………....26
Chapter 3
3.1 Objective of study ..……….
………………………………………………....28
Chapter 4
4.1 Research methodology……..
………………………………………………. .30
4.2 Scope …….……………………………………………………………………
31
4.3 Observation ……………………………………………………………………
31
4.4 Limitation …………………………………………………………………….
…32
4.5 Questionnaire
…………………………………………………………....... ....33
Chapter 5
5.1 Project work undertaken ...
…………………………………………………..37
Chapter 6
6.1 Analysis and interpretation of data ...
………………………………………..46
Chapter 7
7.1
Suggestions…………………………………………………………………….53
7.2 Conclusions ………………………………………………………………..
….54
7.3 Bibliography
……………………………………………………………….......56
1
CHAPTER 1
Executive Summary
2
EXECUTIVE SUMMARY
Over the last few years hundreds of companies have greatly improved their
performance &the graph of growth through superior sales promotion services.Sales
Promotion services have become a subject of huge interest in recent years. Dry outlets
were searched in order to help the promotion. Dry outlets are regarded as the potential
market for the company, here for the coca-cola company.
Dry outlets include those outlets which :
Are selling cold drink but not of coca cola company.
Are not selling cold drink of any company.
Used to sell cold drink of coca-cola but at present are not selling.
The different distribution channels are as follows:"
1.Eating & Drinking 2.Convenience 3.Grocery
Activation is the key part of coca-cola marketing strategy
Company believes that soft drink sell is not a planned sell it's a impulse
buying, and activation create impulse for buying
For improvement of Coca-cola market, a proper research work has done.
Sales Promotion Strategies are offering new & better ways of addressing
industries objectives.Coca-Cola has developed a unique sales promotion strategy
that offer a unique way to increase the sales of the soft drink.
3
CHAPTER 2
Company profile
Introduction of the company
History & Development
Company setup of Coca-cola India
Coke plant in Patna
Product Highlight
Organization chart
Mission
Vision
Competitors
Awards
Customers
COMPANY INTRODUCTION
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. It sells beverage
concentrates and syrups to bottling and canning
operators, distributors, fountain retailers and
fountain wholesalers. The Company’s beverage products comprises of bottled and
canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder
products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca-Cola Company began building its global network in the 1920s. Now
operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola
system has successfully applied a simple formula on a global scale: “Provide a
moment of refreshment for a small amount of money- a billion times a day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world. More than anything,
that system is dedicated to people working long and hard to sell the products
manufactured by the Company. This unique worldwide system has made The Coca-
Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing,
from Montreal to Moscow, Coca-Cola, more than any other consumer product, has
brought pleasure to thirsty consumers around the globe. For more than
5
115 years, Coca-Cola has created a special moment of pleasure for hundreds of
millions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers
through a worldwide system of superior brands and services, thus increasing brand
equity on a global basis. They aim at managing their business well with people who
are strongly committed to the Company values and culture and providing an
appropriately controlled environment, to meet business goals and objectives. The
associates of this Company jointly take responsibility to
ensure compliance with the framework of policies and protect the Company’s assets
and resources whilst limiting business risks.
The biz.system of coca-cola in India directly employs approximately 6,000 people, &
indirectly creates employment for many more related industries throw our wash
procurement, supply and distribution system.
The vast Indian operations comprise 25 companies owned bottling operations & 24
franchises –owned bottling operations. The apart a network of contract packers also
mfg. a range of the product for company. On the distribution front, 10 tone trucks,
open-bay three wheelers that can navigate the narrow alleyways of Indian cities,
ensure that our product available in each corner of the country.
The coca cola is responsible for the mfg. distribution & sales of product across the
country.
6
HISTORICAL BACKGROUND OF COCA COLA
Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and
restaurants in more than 200 countries. lt is produced by the Coca-cola Company
which is also often referred to as simply Coca cola or coke. Coke is one of the world's
most recognizable and widely sold commercial brands; its major rival is Pepsi.
Originally intended as a patent medicine when it was invented in the 19th century,
Coca-cola was bought out by businessman Asa Griggs Candler, whose marketing
tactics led Coke to its dominance of the world soft drink market throughout the 20th
century.
The Coca -cola Company owns and markets other soft drinks that do not carry the
Coca -cola branding, such as Sprite, Fanta, and others. Coca cola was invented. In
Atlanta, Georgia, by John S. Pemberton, originally as a coca wine caned Pemberton's
French, Wine coca in 1885. He was ' inspired by the formidable success of European
Angelo Mariani's coca wine Mariani.
7
HISTORY OF SOFT DRINK IN INDIA
The first brand of soft drink Gold spot established 53 years ago. Before all
empowering Coca-Cola entered the country to dominate the soft drink market, the
history of soft drink in India is quite drinking old. Down the ages, people consume
soft drink to give them a refreshing feeling. Gold spot is considered as the first brand
of soft drink in India, it was introduced in 1965.
Coca- cola at the same time entered the Indian mark t .and dominated the whole
market. It faced no though competition from the domestic market. Due to certain
circumstances the Coca cola Company discontinued its operations in India. In 1993
Coca Cola was launched in Agra (India) again with a slogan of "OLD WAVE HAVE
COME AGAIN" Joining the hand with Parle export Pvt. Ltd., The Company was
trying its best to regain prestige which it had before. At present only Coca Cola and
Pepsi Food are giving tough competition to each other.
Coca Cola was the first foreign drink came in India in the year 1965. Coca cola had a
very good beginning in the Indian market and it hardly faced any competition in
India. The marketing people did not even require advertising Coca Cola. This extra
ordinary success of soft drink could be attributed to following factors.
Later in 1970, it introduced Limca a lemony soft drink. Before limca they had
tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face
battering confrontation with Coca-Cola. The Indian drink had a significant
opportunity in 1977 when Coca Cola decided to wind up its operation rather than
bowing to the government of India insistence of dilution of equity.
8
HISTORY OF SOFT DRINK IN BIHAR
When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages
Pvt. Ltd. of Patna, Bihar on lease for 20 years in 1997 98 started its operation. The
first product launched by Hindustan Coca Cola Beverages Pvt. Ltd. of Patna was
Coca-cola and after that all the remaining products came in the Bihar market. At
present the work force capacity of the Hindustan Coca Cola Beverages Pvt. Ltd. is
126 including all the departments.
The soft drink market in India is quite wide. The production of soft drink in Bihar was
stated on 27th with March 1967 with installation of a Coca Cola bottling plant in
Jamshedpur under the auspicious guidance of late industrialist Mr. Dharma Chad
Kumari which was named as Steel city Beverages Pvt. Ltd. The company controlled
the lions share in the soft drink market for nearly 10 years. Parle also entered this field
in Bihar with the installation of bottling unit in collaboration with Mr. Rajendra
Poddar in the name of Orient Beverage Pvt. Ltd. In 1997 with the advent of Janta
Party Government, it created trouble for Coca Cola which led to withdraw its
operation from India.
After the withdraw of Coca Cola from India the Parle monopolized the soft drink
market in Bihar and took a lions share of the beverages product from the industry
even after Mc. Dowell pure drinks and local drinks entered into the market. They
would not complete with Parle.
9
Once again with the liberalization of economy in 1991. Pepsi Food Ltd. Entered in
the India market. It shared its bottling of products in Bihar by Steel city Beverages
Company on 24th March 1991 owned by Kamani's collaboration with Birla Group
which was once the bottling plant for Coca-Cola. After the re-entry of Coke in 1993
the market scenario of Bihar also changed dramatically. Coca cola establishes its
bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival
Pepsi.
A soft drink is a non-alcoholic beverage. It is artificially flavored and content no fruit
juice or pulp. The invent of soft drink is really a classic example of today's marketing
theory which says “The real marketing spirit of marketing man lies behind the fact of
identifying a need, a real need of consumer and providing him the product to fulfill
his need”.
10
THE COCA-COLA PATNA’s PLANT
Coke begins its operation on 4th Sept. 1998 by taking over the franchise bottler.
It is located at E-I Industrial Area, Patliputra. Plant is spread over an area of 1.75
acres and houses most sophisticated machinery to produce coca-cola and many other
brands marketed by the company.
The plant can produce around 24000 cases of soft drinks per day and employees 113
workers to do the same.
11
PRODUCT HIGHLIGHT
12
A.G.M
Manager (Prodn & Maint.)
Production Executive Manufacturing
Maintainance Executive
Lab Incharge Chemist
Manager (HR) Executivce / Staff Office Staff
Sales Manager Executive / Staff Worker
Finance Manager Executive Office Staff
Marketing Op. Executive Executive Office Staff
Manager Q.A. Chemist ETP Operator Worker
Organizational Chart ofHindustan Coca Cola Beverages Pvt. Ltd.
13
ORGANIGATION STRUCTURE
14
Chief Executive Officer
Vice President Supply Chain
Chief Finance Officer
Human Resource Director
Vice President BSG
Regional Vice President (North)
Regional Vice President (Central)
15
Region VicePresident
AGM/AOD Unit 1
AGM/AOD Unit 2
AGM/AODUnit 3
AGM/AODUnit4
Region Finance
Region Human Resource
Region Customer Service
Region External Affairs
Region Cold Drink
Region Legal
Region BSG
Region Director/Manage
r Market Execution
Region Capability
ManagementRegion Channel
ORGANIZATION STRUCTURE IN COCA-COLA, INDIA
ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT
IN HCCBPL:
16
ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT
MISSION, VISION AND VALUE
17
Our mission, vision and values outline who we are, what we seek to achieve, and
how we want to achieve it. They provide a clear direction for our Company and help
ensure that we are all working toward the same goals.
OUR MISSION
Our mission declares our purpose as a company. It serves as the standard against
which we weigh our actions and decisions. It is the foundation of our Manifesto.
To refresh the world in body, mind and spirit.
To inspire moments of optimism through our brands and our actions.
To create value and make a difference everywhere we engage.
OUR VISION
Our vision guides every aspect of our business by describing what we need to
accomplish in order to continue achieving sustainable growth.
People: Being a great place to work where people are inspired to be the best they can
be.
Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
Partners: Nurturing a winning network of customers and suppliers, together we
create mutual, enduring value.
Planet: Being a responsible citizen that makes a difference by helping build and
support sustainable communities.
18
Profit: Maximizing long-term return to shareowners while being mindful of our
overall responsibilities.
OUR VALUE
Coca-Cola is guided by shared values that both the employees as individuals and the
Company will live by; the values being:
LEADERSHIP: The courage to shape a better future
PASSION: Committed in heart and mind
INTEGRITY: Be real
ACCOUNTABILITY: If it is to be, it’s up to me
COLLABORATION: Leverage collective genius
INNOVATION: Seek, imagine, create, delight
QUALITY: What we do, we do well
'
COMPETITORS TO HCCBPL
19
The competitors to the products of the company mainly lie in the non-alcoholic
beverage industry consisting of juices and soft drinks.
The key competitors in the industry are as follows:
:
PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola
Company never ends for the World's # 2, carbonated soft-drink maker. The
company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the
company's only beverage; PepsiCo sells Tropicana orange juice brands,
Gatorade sports drink, and Aquafina water.
20
PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and
Coca-Cola hold together, a market share of 95% out of which 60.8% is held by
Coca-Cola and the rest belongs to Pepsi.
Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly
deals with milk products, Baby foods and Chocolates. But the iced tea that is
Nestea which has been introduced into the market by Nestle provides a
considerable amount of competition to the products of the Company. Iced tea is
one of the closest substitutes to the Colas as it is a thirst quencher and it is
healthier when compared to fizz drinks. The flavored milk products also have
become substitutes to the products of the company due to growing health
awareness among people.
Dabur: Dabur in India, is one of the most trusted brands as it has been
operating ever since times and people have laid all their trust in the Company
and the products of the Company. Apart from food products, Dabur has
introduced into the market Real Juice which is packaged fresh fruit juice. These
products give a strong competition to Maaza and the latest product Minute
Maid Pulpy Orange.
21
AWARDS
Coca-Cola wins Bhagidari Award - Fourth time in a row
Coca-Cola India won the Delhi Government's
Bhagidari Award for the 4th consecutive year
for its efforts in Water Conservation and
Community Development. The award was
presented on the second day of the two days
Bhagidari Utsav at Pragati Maidan, New Delhi
on February 3, 2007 by the Hon’ble Chief Minister of Delhi Smt. Ms. Sheila Dikshit.
We took this opportunity to also present the Water Calendar 2007 to the Hon'ble CM.
The Bhagidari Utsav is an annual event to celebrate the success of 'Bhagidari' - A
public -private-community partnership program launched by the Delhi government a
few years ago.
Among the highlights of the Utsav was an exhibition cum display by some of the
partners of the Delhi government, where each partner showcased its initiatives to
make Delhi a 'better' place. In recognition of Coca-Cola's efforts in Water
Conservation and PET Recycling, we were given two stalls to outline our initiatives in
these areas. Ms. Dikshit was one of the first to visit our PET Recycling stall and after
being briefed on our PET Recycling program, she urged the Company to spread the
awareness on PET Recycling not just amongst the visitors to the Bhagidari Utsay but
also among people at large.
Our Water Conservation stall was visited both by the Hon'ble Chief Minister Ms.
Sheila Dikshit as well as by the Hon'ble Mr. A. K. Walia, Minister for Finance,
22
Planning, P.W.D & Urban development, Delhi Government, who were briefed about
the various programs undertaken by the Company to spread awareness and to
conserve water. The dignitaries were very appreciative of our efforts. We had
showcased a device called 'Drip Gauge' for the first time in the country at the stall.
Drip Gauge is a simple but effective tool to sensitize people to save water. A 3-D
Rain Water Harvesting (RWH) model demonstrating the utility, functioning and
commissioning of Rain Water Harvesting projects at individual households &
residential colonies was also on display. In addition, people were apprised of simple
methods to Reduce, Reuse, Recycle and Recharge water in their daily lives.
Our stalls evoked tremendous response from all stakeholders and nearly 3000 people
visited our stalls during the event of these nearly 2500 participate in the two quiz
contests that we ran at the stalls. Several Resident Welfare Associations and NGOs
also approached us seeking our guidance and help for RWH and PET Recycling
programs in their colonies.
St. Agnes College (Mangalore University) Wins The First Jimmy & Rosalynn Carter
Partnership Award In India.
(From left) President Jimmy Carter, Ms Rosalynn Carter, Dr Sue Sehgal, Founder &
President Jimmy & Rosalynn Carter Foundation, Sister Carmel Rita from St Agnes
College and other members of the College.
President Jim y Carter & Ms Rosalynn Carter personally presented the Jimmy and
Rosalynn Carter Partnership Award for Campus community Collaboration to St.
Agnes College (Mangalore University) for the exemplary work done by them in the
23
field of 'Watershed Management & Development'. -
The award has been brought into India by Coca-
Cola India in association with Federation of Indian
Chambers of Commerce & Industry (FICCI).
The coveted award serves as one of the highest
recognition for academic-service learning to
educational institutions for outstanding 'Campus
Community Learning programs.
St Agnes received a special handcrafted golden globe trophy, a citation & a cash prize
of US$ 10,000. The 2nd and 3rd runner's up i.e. Punjab University for its Literacy
Program & Aligarh Muslim University for its Pulse Polio Immunization Program also
received a citation and a cash' prize of US $ 3000 and US$ 2000 respectively. The
winner was selected by the foundation based on the combined merits of each program
out of scores of applications received for the award.
Speaking on the occasion, President Jimmy Carter said, "This will be the first
presentation or this award outside the United States, and it is particularly significant to
me that India is the next country to embrace this recognition of service. Many years
ago my mother, who was a nurse and Peace Corps volunteer, ministered to Indian
citizens. That experience touched her deeply, and the emotion she felt, and also the
love for India has filtered through to me through her recollections." Also present at
the Award Ceremony were Shri Kapil Sibal, Honorable Minister for Science &
24
Technology & Earth Sciences, Government of India & Aparna Sen, noted film actor,
director.
According to Atul Singh, President & CEO, Coca-Cola India, "President Carter and
Coca-Cola share a strong belief in the benefit of working for the local communities.
As an example o)r Company is actively spearheading water sustainability and
conservation programs in India. We have so far commissioned more than 220 rain
water harvesting structures in 17 Indian states both at bottling plants and in the local
communities. We are constantly trying to benefit the communities where we operate."
Carter Partnership Awards celebrate schools, communities, and businesses working
together to make a difference in the lives of people in ne d. The Award aims to be a
powerful motivator for the academic community to develop community service
programs in their curriculum and encourages the student community to inculcate
values of selfless service and empathy towards the community.
Other members present at the function included, Mr S K Poddar, President FICCI, Dr
Sue Sehgal, Founder & President, Jimmy & Rosalynn Carter Partnership Foundation,
Shri Farookh Abdullah, eminent parliamentarian, Naveen Jindal (Member of
Parliament) & other well known personalities. World Environment Foundation
Awards 2005 Golden Peacock Environment Management Award to Kaladera unit.
25
The World Environment Foundation
(WEF) awarded the prestigious Golden
Peacock Environment Management Award
2005 (GPEMA) to the Coca-Cola bottling
plant at Kaladera, near Jaipur, in
recognition of its world-class environment
practices. Coca-Cola Indias ultra-modem
ISO 14001 certified bottling plant in the
State won this top award in the medium
scale Food & Beverage category from amongst more than 17 entries. The Kaladera
unit is the fourth plant to get this distinction in the Coca-Cola India after
Baddi(Himachal Pradesh), Ameenpur (Andhra Pradesh) and Dasna (Uttar Pradesh).
The award was presented to the plant team at a glittering function at Palampur by Dr.
OIa Ullisten, former Prime Minister of Sweden.
The Kaladera unit qualified on stringent selection criteria of an eminent international
and national jury of experts after a thorough evaluation of the plants compliance with
a WEF prescribed program assessment format covering various issues related to
environment management. The assessment covered a period of one year from 1 st April
2004 to 31st March 2005 and several environmental performance indicators were
monitored and evaluated according to WEFs stringent parameters, for grant of this
award. Some of the environmental performance monitors are: energy use, water use,
wastewater discharge, compliance with Government regulations and positive impact
on local community.
26
The Golden Peacock Environment Management Award the GPEMA is designed to
encourage and recognize effective implementation of environmental management
system and this achievement has been made possible by the plants adherence to Coca-
Colas total quality program called The Coca-Cola Quality system (TCCQS). TCCQS
is all encompassing management system (Total Quality) covering environment
management and other business aspects such as safety and loss Prevention (SLP),
product quality, packaging quality, process capability improvement and customer
satisfaction.
UPEMA has been instituted by the Institute of Directors in association with World
Environment Foundation (WEF) and is designed to encourage and recognize effective
implementation of environment management system. The awards are given separately
for manufacturing and service organizations, and are assessed under the following
categories, viz large enterprises (251 and above employees), Medium Enterprises (51
to 250 employees), and Small Enterprises (upto 50 employees). WEF is a non-profit
NGO, which strives to foster partnerships and improve links between industry and
environmentalists for developing innovative strategies to minimize the environmental
degradation.
27
CUSTOMER
As coca cola has a wide range of products. Its customer also varies according to taste
and preference. Coca cola is also available in can of 330ml which targets the upper
income class and their sale is also confined in those particular places.
Coca cola is available in cola, lemon, orange and juice flavor, accordingly customers
have choice for. Among the products of coca cola Thumps-up has lead the way with
45% of market share Fanta stands third after Mirinda.
Coca Cola Company has wide range of customers that falls under the distribution
channels of marketing. Customers may be CNF, distributor, retailers to final
customers, which are households.
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CHAPTER 3
Objective of the study
OBJECTIVE OF THE STUDY
1) To know the reason behind prevailing dry outlet
2) To know the availability of activation element in dry outlet.
3) To know the problem in the distribution of activation element.
4) To identify suitable activation element according to the outlet's location.
5) To know the impact of activation element on sell when keep it outside.
6) To know the impact of activation element on customer.
7) To help M.D. (Market Developer) in outlet activation.
30
CHAPTER 4
Research Methodology
Scope of the study
Observation
Limitation
Questionnaire
RESEARCH METHODOLOGY
The methodology used to analyze the project is mainly based on survey method and
this survey was conducted through direct contact with grocery retailer, convenience
store, hotels.
For survey sample size was taken from different location of Patna using cluster
sampling technique and it was coveted with the help of market developer and key
account manger of the Hindustan Coca-Cola Beverage Private Limited.
SOURCES OF DATA COLLECTION
The data are collected from primary and secondary sources.
PRIMARY SOURCES.
1.Direct interview with Grocery outlet, Convenience store, hotels.
SECONDARY SOURCES
Internet Sites - www.google.com,
www.Coca-Cola.com,
www.wikipedia.com,
www.coca-colaindia.com
Activation booklet of the coca-cola.
RED tracker of the market developer.
Magazines - Business World Management and Technology
32
SCOPE OF THE STUDY
1)The main scope of study is to understand the impact of S.G.A (Sells Generating
Assets) on sell.
2)To increase number outlets.
3)To make a platform for market developer to work on difficult dry outlet.'
OBSERVATION
To collect order each and every outlet.
To cheque Vz-cooler with 100% purity.
To see a soft drink in Brand Order.
To see every outlet is this soft drink present in display rack.
To see every outlet Vz- cooler will present in prime location.
To visit every outlet in regular basis.
To go every outlet and listen any problems in Vz- cooler and soft drink to
be noted in complaine diary.
To see each and every outlet worked in better condition.
To see as a Market developer (M.D) every outlet full fill in terms and
conditions with Vz-Cooler.
To see as a Market developer (M.D.) if any outlet will not selling your
product than you asked why you are not selling in my product. Then you
give advise to outlet.
33
LIMITATIONS
Although all efforts have been taken to make the results of survey as accurate as
possible but the survey suffers from the following limitations:
The time period of study was only for two month so it was not possible to
cover all the areas and go into the depth of the problem and make analysis.
The area of survey was Patna district and it was concentrated on urban
area only.
The psychological condition varies from place to place because in many
places outlet owner was not supportive.
The training was carried on in the peak season so market developer was
not so supportive.
Some respondents left some of the questions unanswered either due to
inability to put a strain on mind or they did not know the answer.
34
QUESTIONNAIRE
TOPIC: TO IDENTIFY DRY OUTLETS IN PATNA
QUESTION FOR RETAILERS:
Name of the Outlet: …………………………………………………
Address: ……………………………………………………………..
Contact No.: …………………………………………………………
1. For how long have you opened your outlet?
a.One year b. Two years
c.Three Years d. More than 3 yrs.
2.Are you interested for selling the soft drink?
a. yes b. No
3.Which Companies soft drinks do you want to sell?
a. Coca-Cola b.Pepsi c.Both
4. According to you, what is the impact of brand order on your sale?
a. Substantial increased b. Minor Increased
c. Same d. Can’t say
5. Who executes all these executions on your outlet?
a. Distributor b.Company Personnel
c.Any other(Plea. Specify)………………………………….
6. Are you facing any problems in supply of soft drinks from the Coca-
Cola Company?
a.yes b. No
35
7. What attribute you consider while selling soft drinks?
a. Taste b. Brand name
c.Quality d.Availabilty
e.Celebrity associated f. Advertisement
g. Any other (plea specify)……………………………………..
8. Which Brand do you prefer to sell for the specific flavor?
a. Thumsup or, Pepsi
b. Coca-Cola or, Pepsi
c. Sprite or, 7 up
d. Limca or, Mirinda Lemon
e. Fanta or, Mirinda orange
f. Maaza or, Slice
9. Which size of cold drinks do you prefer to sell?
a. 200 ml b.300 ml
c. 600ml d. Family Pack
10. Which affects more generally to sell soft drinks?
a. Convenience b. E & D
c. Grocery d. Any other
11.What are expectations you have from the company
…………………………………………………………………………
…………………………………………………………………………
…………………………………………………………………………
36
12. Any Suggestion:
…………………………………………………………………………
…………………………………………………………………………
…………………………………………………………………………
THANKS FOR YOUR KIND CO-OPERATION
Date………………..
Signature
37
CHAPTER 5
Project work undertaken
TECHNOLOGY
Technology helps any business or
industry to keep pace with time. It is
a major weapon to get a competitive
advantage over its competitor.
WATER TREATMENT
Water treatment is very essential in
soft drink plant as the nature & quality of water varies from place to place. The water
taken out of bore well by the help of motor pump & pipe lines are connected in
storage tank where is pre-chlorinated by chlorinator & then by the help of pipelines
line comes to a treatment tank called a coagulation tank where to this water, solution
of different strength of bleaching powder ferrous sulphate, hydrate lime are added
through dosing pump to reduce alkalinity hardness, kills the bacteria. Mechanical
striper mixes the chemical & then the suspended matter settles down as sludge and
clear water passage to retention tank. From this tank the water passage through sand
filter containing fine sand and pebbles and carbon filter containing granular carbon
and finally through water polisher, micron filter, uv lamp to ensure clear and sanitary
water for use further' water is used In bottle washer and boiler need softening. For this
purpose, the water from storage tank after passing through two filter beds containing
fine sand and granular carbon respectively comes through a bed of resin where it is
softened. This softened water is essential to use in boiler & bottle. Water to reduce
scale formation inside the machines.
39
SYRUP MAKING
For the syrup making of particular brand, calculated quantity of
sugar water, activated carbon (powder) & by flow super cell
known as filter aid are taken into sugar space to enter steam and
also filter by motor with agitated sugar syrup called raw syrup is
prepared by dissolving the sugar with continuous stirring and
heating by steam supplied by oil fried boiler this hot syrup by
the help of a pump is filtered through a filter press attached with
a series of quality filter paper to separate out carbon particles.
Clear hot syrup by the help of SS pipeline passes through water
P.H.E. for cooling then another P.H.E. circulated by glycol for further cooling. The
chilled syrup comes to a mixing tank, which is cleaned & sanitized prior to use. After
calculation of sugar quantity by Brix hydrometer, concentrate are added & mixed
thoroughly by a mechanical stirrer filter to the tank. This syrup is known as finished
syrup ready to drink the concentration mainly, the liquid parts are kept in a cold store,
the temperature of finished syrup is and room temperature is also maintained by air-
conditioner, all the containers used for syrup making are cleaned sanitized by soda -
di - carb, strong chlorine and hot caustic soda solution.
BOTTLING WASHING
Bottle washing is an important part in soft drink plant. The empty durable and
restorable bottles used are returned from market in plastic crates, are fed to bottle
washing machine (washer). The machine has double end system with circular chain to
carry the bottles. Caustic soda, tri- sodium phosphate, sodium gluconate is added to
the caustic tanks filled in with water heated by steam supplied by the boiler. The
40
empty bottles enter to the tanks in one end & after being cleaned by hot caustic
solution and finally washed with water through spray- jets fitter dared discharged in
other end. The washed bottles after proper inspection are directed to filling machines
through conveyor. SU819 & SU853 are used for conveyor. Cleaning and smooth
running of chain carrying bottles, SU260 & SU773 are used for bottle cleaning,
shining and mold removing concentration.
FILLING
Finished syrup and treated water lime are concentrated to a dosing pump, which
mixes syrup and water with ratio 1.5 and the syrup mixed with water enters to
carbonator tank to mix with carbon-dioxide gas which are preserved in cylinders for
use. The cylinders are connected through carbon dioxide pressure and temperature of
liquid; we use recording control (Taylor). The syrup passed through a PHE that is
cooled itself by circulation of chilled glycol supplied by chilling compressor. To run
the machine for chilling F-22 gas is used. The syrup being chilled easily mixes with
carbon- dioxide and enters to filter for boiling. The filter is fitted with filling valves
and lift cylinders. The lift cylinders function by pressure of air supplied by an air
compressor. The syrup known as beverage in this stage is filled in the cleaned bottle,
which are durable in nature and returnable by the buyer. By the filling machine by a
counter pressure of carbon-dioxide gas. After beverage is filled in bottle goes to the
crowner where with the help of crown corks the bottle are sealed (crowned) to product
the carbonation, flavor outside contamination and spoilage. The finished product are
coded, by coding machine and inspected properly by inspection light while passing
through the conveyer fitted with SS chains. The empty plastic crated, passing through
a conveyer enter to crates, which are durable in nature and returnable by buyer, put on
41
plates and sent shipping for shipment. The entire container in contact with syrup are
properly cleaned and sanitized by soda-bio-carb, hot water, hot caustic soda solution
and strong chlorine base.
TESTING OF PRODUCT
Finally the finished syrup during bottling is tested in laboratory to meet the
parameters and also to get standard and quality products. To maintain the standard
and uniformity in products, the sugar contents and carbonation in the filled bottle are
checked in regular intervals' by drink- hydrometers refract meter and pressured gauge.
A digital Ph meter tests TA and Ph Electronic digital balance is used to the weight
chemical to conduct test in lab. The purity of carbon dioxide is checked by a carbon
dioxide purity tester. The microbiology test of the products and water used in syrup
making and production are also done to ensure that the product is free from any
bacteriological contamination. To conduct the micro test, 'hot sterilizer incubator
autoclave, pads filter membranes are produced and used. The diesel generator is
operated is operated incase of electricity failure for smooth operation of the plant and
for drawn electricity from the state electricity board the transformer is used.
42
MANUFACTURING PROCESS
43
DISTRIBUTION NETWORK
HCCBPL has a wide and well managed network of salesmen appointed for taking up
the responsibility of distribution of products to diverse parts of the cities. The
distribution channels are constructed in such a way that the demand of customers is
fulfilled at the right place and the right time when it is needed by them.
A typical distribution chain at HCCBPL would be:
Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse
--- Retail Stock --- Retail Shelf --- Consumer
The customers of the Company are divided into different categories and different
routes, and every salesman is assigned to one particular route, which is to be followed
by him on a daily basis. A detailed and well organized distribution system contributes
to the efficiency of the salesmen. It also leads to low costs, higher sales and higher
efficiency thereby leading to higher profits to the firm.
DISTRIBUTION ROUTES
The various routes formulated by HCCBPL for distribution of products are as follows:
Key Accounts: The customers in this category collectively contribute a large
chunk of the total sales of the Company. It basically consists of organizations
that buy large quantities of a product in one single transaction. The Company
provides goods to these customers on credit, payments being made by them
after a certain period of time i.e. either a month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.
44
Future Consumption: This route consists of outlets of Coca-Cola products,
wherein a considerable amount of stock is kept in order to use for future
consumption. The stock does not exhaust within a day or two, instead as and
when required stocks are stacked up by them so as to avoid shortage or non-
availability of the product.
Examples: Departmental stores, Super markets etc.
Immediate Consumption: The outlets in this route are those which require
stocks on a daily basis. The stocks of products in these outlets are not stored
for future use instead, are exhausted on the same day and might run a little
into the next day i.e. the products are consumed at a fast pace.
Examples: Small sized bars and restaurants, educational institutions etc.
General: Under this route, all the outlets that come in a particular area or an
area along with its neighboring areas are catered to. The consumption period
is not taken into consideration in this particular route.
DISTRIBUTION SYSTEM
Direct distribution: In direct distribution, the bottling unit or the bottler
partner has direct control over the activities of sales, delivery, and
merchandising and local account management at the store level.
Indirect distribution: In indirect distribution, an organization which is not
part of the Coca-Cola system has control on one or more of the distribution
elements (Sales, delivery, merchandising and local account management)
45
Merchandising: Merchandising means communication with the consumer at
the point of purchase to convey product benefit, value and Quality. Sales
people and delivery personnel both have this responsibility. In certain
locations special teams who go into business locations to specifically
merchandise our products.
DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS
The Distribution process mainly consists of three departments:
Distribution Department: It appoints distributors and establishes a
distribution network, processes approved sale orders and prepares invoices,
arranges logistics and ship products, co-ordinates with distributors for
collections and monitors distribution stocks and their set-up.
Finance Department: It checks credit limits and approves sales orders in
compliance with the credit policy followed by the firm, records collections
from distributors, periodically reconciles outstanding balances from
distributors, obtains balance confirmation from distributors and follows up
outstanding balances.
Shipping or Warehousing Department: It dispatches goods as per approved by
order, ensures that stocks are dispatched on a FIFO basis, ensures physical control
over load out area and updates warehouse stock records in a timely manner.
46
CHAPTER 6
Analysis and Interpretation of data
ANALYSIS OF DATA
Data are collected from different location of Patna Market.
1.RAZA BAZAR 2.DANAPUR
3.RAJBANSI NAGER 4.PATEL NAGER
5.BAILY ROAD
SURVEY ANALYSIS.
The Survey was conducted in in different location of Patna. A Total survey Of 250 outlet was conducted.
1. INCEPTION OF THE OUTLET
1 year 2 years 3 years >3years0
50
100
150
200
250
127
57 54
12
YEARS
NO
OF
SHO
PS
2. SHOPKEEPER’S INTEREST TO SELL COLD DRINK
Yes No0
50
100
150
200
250
159
91
NO
OF
SHO
PS
3. BRAND PREFERENCE
48
Coca Pepsi Both0
102030405060708090
100
70
28
2
Perc
ent
4.BRAND ORDER IMPACT
A B C D0
10
20
30
40
50
60
70
80
90
100
41
29 27
3
PERC
ENT
5. SERVICE PROVIDER
Distributor CP Other0
10
20
30
40
50
60
70
80
90
100
PERC
ENT
6. RESPONSE TO PROBLEMS WITH SUPPLY FROM COMPANY
49
Yes No0
10
20
30
40
50
60
70
80
90
100
55
45PE
RCEN
T
7. ATTRIBUTES AFFECTING SALE
Taste Brand Quality Availability Celebrity Ad Other0
10
20
30
40
50
60
70
80
90
100
2
17
3
67
4 70
8. PREFFERED COLA FLAVOUR
Thums Up Coca Cola Pepsi
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
80% 5% 15%
Perc
enta
ge
9. REFRESHER PREFFERED
50
Sprite Mountain Dew 7 up
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
85% 10% 5%
Perc
enta
ge
10. PREFFERED ORANGE FLAVOUR
Fanta Mirinda0%
10%20%30%40%50%60%70%80%90%
100%
70% 30%
Perc
enta
ge
11. PREFFERED MANGO FLAVOUR
Maaza Brand Frooti0%
10%20%30%40%50%60%70%80%90%
100%
80% 5% 15%
Perc
enta
ge
12. IMPACT OF ACTIVATION ELEMENT ON SALE
51
Yes No0%
10%20%30%40%50%60%70%80%90%
100%
10%
90%
13. IMPACT OF ACTIVATION ELEMENT ON E&D
Table Top Combo GSB0%
10%20%30%40%50%60%70%80%90%
100%
40% 25% 35%
Perc
enta
ge
14. IMPACT OF ACTIVATION ELEMENT ON GROCERY
Mobile Hanger 3 Tier Rack Self Display0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
40% 45% 15%
Perc
enta
ge
15. IMPACT OF ACTIVATION ELEMENT ON CONVENIENCE STORE
52
Flange/Road Stand Table Top Hanger0%
10%20%30%40%50%60%70%80%90%
100%
40% 25% 35%
Perc
enta
ge
16. IMPACT OF RED ON SALE
Yes of Course No, It’s Waste Can't Say0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
65%
25%
10%
17.COMPANY PREFFERED IN TERMS OF SCHEMES
Coca Cola Pepsi0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%90%
10%
53
CHAPTER 7
Suggestions and Conclusions
Suggestions
Conclusions
SUGGESTIONS
Taking the above analysis into consideration, the following points can be regarded for
further marketing of the product:
It should be essential to provide SGA to company’s keys outlets and the
quality of the SGA should be good especially it should consume less
electricity.
Company should introduce incentive based schemes for RED score. Incentive
should be different for different RED score.
Company should start campaign to provide information about RED to the
outlets because many of them have no idea about RED.
Company should instruct MD to achieve a certain target of RED score in a
particular month.
Higher authority of the HCCBPL should make regular visit to the RED outlet
of the various areas & should deal with complaints.
Schemes should be provided at regular interval especially in the peak seasons
and Information of schemes should be crystal clear.
CONCLUSIONS
55
Coca-Cola is the leading soft drink brand in Patina region & most selling brand in
the region is Thumps Up, Sprite and Maaza.
According to most of the outlet owners the product which is seen is sold i.e. "Jo
Dikhta Hai Woh Bikta Hai".
Prime position of Visi-cooler outside the outlet plays an important role in the
selection of the soft drink by customer.
Few activation elements like Table Top, Glow Shine Board, Hanger; Road Stand
plays a major role in increasing sell of the soft drink.
Supply of product as well as stock keeping unit is not up to the mark.
56
CHAPTER 8
Bibliography
BIBLIOGRAPHY
Reference:
Books Authors
Marketing Research :Naresh Malhotra
Marketing Management :Philip Kotler
Research Methodology :C. R. Kothari
Websites :
www.quickmba.com
www.indiacom.com
www.yellowpages.com
www.coca-colaindia.com
58