Special

A Project Report On

“DISTRIBUTION STRATEGY OF COCACOLA”

in

HINDUSTAN COCA COLA BEVERAGES PVT LTD

(Atmakur Village,Magalgiri Mandal)

A PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF

“MASTER OF BUSINESS ADMINISTRATION”

SUBMITTED BY

P.DURGA PRASAD

(H.T.NO.151110672014)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

PULLA REDDY INSTITUTE OF COMPUTER SCIENCE

(Approved by AICTE, affiliated to OSMANIA UNIVERSITY)

Near Dundigal Airforce Academy,Annaram vill, Medak Dist-502313.

DECLARATION

I hereby declare that the Project entitled “DISTRIBUTION STRATEGY OF

COCA-COLA ” which is an original work done by me under the supervision of

Prof.Mr.Srinivas RRS, Department of Business Management. This Project report or any

part of the project there of has not been submitted for any other degree to any other

institute or college.

This report is the result of sincere efforts by us, wherein we endeavor to come up

with best possible results.

Place: Hyderabad

Date:

(P.DURGA PRASAD)

ACKNOWLEDGEMENT

This discretion bears the imprint of many persons who directly or indirectly made

significant contribution to the emergence.

Firstly, I thank Prof. Uday Kumar sir, Principal, Department of Business

Management, and OU for encouraging me to do this project.

I convey my deep sense of gratitude and sincere thanks to my project guide

Prof.Srinivas RRS, Department of Business Management, for his guidance through out the

project.

I also thank to Mr.CVS RAMAKRISHNA (A.S.M) AND Mr. G.RAMESH, TEAM

LEADER in Hindustan Coca Cola Beverages Pvt.Ltd for their valuable suggestions and

inputs during the project.

Finally, I would like to thank all the staff of Hindustan Coca Cola Beverages Pvt

Limited who helped me in the completion of project.

(P.DURGAPRASAD)

CONTENTS

CHAPTERS PARTICULARS PAGE NO

CHAPTER-1 INTRODUCTION

NEED FOR THE STUDY

OBJECTIVE OF STUDY

METHODOLOGY

LIMITATION

CHAPTER-2 INDUSTRY PROFILE

CHAPTER-3 COMPANY PROFILE

CHAPTER-4 THEORITICAL FRAME WORK

CHAPTER-5 DATA ANALYSIS AND INTERPRETATION

CHAPTER-6 SUMMARY, FINDINGS & SUGGESTIONS

BIBILOGRAPHY

ANNEXURE

CHAPTER 1

INTRODUCTION

MARKETING

Marketing is an exciting, dynamic and contemporary field. It influences us each day in

both our roles as providers of goods and services and as customers. We are all involved with or

affected by practices. In the role of providers of goods and services, we make such marketing

related decisions as choosing who our customers are, what goods and services to offer, where to

sell our goods and services, what features to emphasize and what price to charge.

The persons who are providing these types of activities are called as marketers. The

activities are utilized by all types of organization and individuals.

The role of a customer, the marketing practices of goods and services providers impact

on many of the decisions made by different individuals. At each stage of life cycle the

individuals requires products and services and his needs varies with the growth.

Essentially creating a customer means identifying needs in the market place, finding out

which needs the organization can profitably serve, and developing an offering to convert

potential buyers into customers of the organization.

COMMUNICATING INFORMATION ABOUT THOSE PRODUCTS AND SERVICES

TO PROSPECTIVE BUYERS

1. Identifying customer needs

2. Pricing the products to reflect costs, competition and customer’s ability to buy.

3. Designing products and services that meet those needs.

4. Making the products or services available at times and places that meet customer’s needs.

DEFINITIONS OF MARKETING

Classical Definition:

“The performance of business activities that directs the flow of goods and services

from producer to customer or user”

Modern Definition:

“Marketing is the process of planning and executing the conception, pricing promotion

and distribution of ideas, goods and services to create exchange that satisfy individual and

organizational objectives”-American Marketing Association

“Marketing is a social and managerial process by which individuals and groups obtain

what they need and want through creating ,offering and exchanging products of value with

others”-Philip Kotler

“Marketing is the delivery of a stander of living to society”-Mitchen

MARKETING MANAGEMENT

It consists of planning and executing the conception, price, promotion and distributions

the goods, services and ideas to create exchange with target groups the satisfier customer and

organization object.

Scope of Marketing

Marketing is typically seen as the creating, promotion and deliver goods and services to

consumer and business .In fact marketing people are involved in marketing

10 types of entities

Goods, Services, Expectation Events, Persons, Place, Properties, Organization Information and Ideas.

OBJECTIVES OF THE STUDY

To measure the performance of distributors in the outlets. Reasons/causes for the low sales by the Retailers.

To advertise the various products of the Company To find out the present sales status of  Thums Up, Coke, Sprite, Limca, Fanta, Maaza, at the

retail outlets in the area.. To ensure the availability and visibility of the product. To analyze the effect of scheme.

RESEARCH METHODOLOGY

1. Research Design: The research design is a master plan specifying the method and procedures

for collecting and analyzing needed information. The research design in this project is

DESCRIPTIVE and Descriptive research includes surveys and fact-finding inquiries of different

kinds. Casual research is used to know the cause and affect relationship.

2. Data Collection Methods:

The source of data includes primary and secondary data sources.

Primary Sources Primary data has been collected directly from sample

respondents through survey method and with the help of structure

questionnaire.

Sampling Technique: Non-Probability Convenience Sampling.

Sampling Size: 100 Respondents

Sampling Unit: Vijayawada

Secondary Sources Secondary data has been collected through from

standard textbooks, Newspapers, Magazines, Internet & Company

website.

3. Data Analysis:

The data collected through survey was analyzed with help of simple percentages. Tabular and graphic

methods, which included pie charts and bar graphs, are used to analyze data.

LIMITATIONS

Time being the constant. Project study was done for a limited Population in Vijayawada

city only.

The sample size was 100 respondents and the respondents were chosen randomly.

Because of short span of time it is not possible for me to cover the maximum market.

The study work is done in vijayawada, so the result may not be applicable universally.

CHAPTER-2

INDUSTRY PROFILE

SOFT DRINK INDUSTRY AND REGULATIONS

Definition of soft drink:

Soft drinks are non-alcoholic water –based flavored drinks that are optionally

sweetened, acidulated, carbonated and which may contain fruit juice and / or salts; their flavor

may derive from vegetable extracts or other aromatic substances. They constitute a defined and

homogeneous range, designated by a generic denomination and utilizing a single common list of

additives. They include the beverages which completely with this definition, which utilize these

additives and which do not claim to be part of adjacent categories such as fruit juices and nectars

dairy drinks, mineral waters, etc.

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 beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages

Natural and Synthetic beverages

BEVERAGES

Non-Alcoholic

Carbonated

Non-Carbonated

Alcoholic

Non-Cola Cola Non-Cola

In-home consumption and out of home on premises consumption.

Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.

Segmentation based on the amount of consumption i.e. high levels ofconsumption and low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it isimportant to address this issue so as to encourage regular consumption as well as and to make the industry more affordable.

Four strong strategic elements to increase consumption of the products ofthe beverage industry in India are:

The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.

The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.

Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.

Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.

SOFT DRINKS INGREDIENTS

The major ingredients of soft drinks include the following:

1. WATER:

The major ingredient of soft drinks is water and it accounts for 86%-90% of the soft drink

consumption.

2. AROMATIC SUBSTANCES :

Aromatic substances are added to soft drinks to give a pleasant taste and better stability to

the taste. These could be natural aromatic substances like caffeine obtainable from a variety of

leaves. Seeds and fruits. Identical aromatic substances can be obtained more than plant raw

material and have characteristics which correspond exactly with their natural equivalent.

3.SWEETENERS :

There are many different types of sweeteners like sugar (sacharose), another major

ingredient in soft drinks as it is highly nutritious and is the invaluable carrier of the fruit aromas.

It is made from sugar beet or sugarcane or sweeteners found naturally in many fruits and

vegetables. Two simple type of sugar are found in fruits_fructose (fruit-sugar) and glucose (grap-

sugar). There are also low-calorie artificial sweeteners like saccharin and aspartame (nutra-

sweet). Saccharin is a non-nutritious sweetener that is extremely sweet, stable gives no energy

(no calories). Aspartame is a nutrient-sweetner built up of two amino acids, asparagus acid and

phenylalanine (200 times sweeter than saccharin).

4. CARBON DIOXIDE:

Carbon dioxide is another important ingredient added to the soft drinks in liquid form. It

makes the drink more refreshing through its stimulation of the mouth’s mucous membranes

adding a sensation that the soft drink is colder. The carbon dioxide also brings out the aroma

since the carbon dioxide bubbles ‘drag with them‘ the aromatic components. It also checks

microbiological growth.

5. ACIDS:

The most common acids used in soft drinks are citric acid, phosphoric acid and malic

acid. The function of acidity in the drink is to balance the sweetness, make the drink fresh and

thirsty quenching.

6. COLOURING MATTER:

Color is added to soft drinks to make them presentable and appetizing. Brown drinks are

colored with caramel (when sugar is heated, its color changes to brown, it becomes less sweet

and acquires a burnt taste) or betakarotin, which is also the dominate coloring agent in carrots

and oranges.

7. PRESERVATIVES:

Preservative like Natrium benzoate and are added to increase the life of the product.

Sulphur dioxide can be used as a preservative.

8. ANTIOXIDANTS:

Antioxidants are substances, which prevent reactions that destroy aromatic substances

in soft drinks. The most common antioxidant used is ascorbic acid, i.e. Vitamin C.

9. OTHERS ADDITIVES:

Emulsifying agents, stabilizing agents, and thickening agents are also added so that the

contents of drinks remain evenly distributed. Examples of stabilizing agents and thickening

agents are pectin,

This is obtained from citrus fruits or apples, and alginates and carraghen, which is obtained from algae.

PROFILE OF THE SOFT DRINK INDUSTRY IN INDIA

Soft drink industry was considered as one of the typical consumer products industry. In

India soft drinks manufacturing unit was first started by M/s Parle (Exports) PVT.LTD,

Mumbai in the year 1949.

Later Coca-Cola Export Corporation (CCEC) started its unit in Delhi in the year 1950.

It captured the Indian market and became the market leader of soft drink industry with in a

short period.

In the early days, the concentrate was imported from an overseas plant of CCEC. In

1958, its own plant was setup at Delhi for manufacture of concentrate. It has 22 plants operated

in 13 states through 2,00,000 retail outlets.

In 1971 sales touched Rs.637.78 lacks yielding profits of Rs.51.37 lacks before taxes. By

1976-77, margin before taxation was 55% - 60% which is 35% - 40% more than that consumer

goods gradually fetch. It enjoyed the monopoly powers as the market leader in the industry in

the year 1975 government stipulated that it should dilute its equity of 40% to the Indian brands

and transfer its technology to India.

The CCEC agreed to former condition and did not accept the later one as it wanted to

keep allusion and quality control office in India to control its COKE concentration, In 1977

CCEC left the country. The gap created by the exit of CCEC laid a favorable ground for the

indigenous products to capture the market.

After Coca – Cola bid a sad farewell in 1977, the Indian market was open for various

new cool drinks and several companies come forward pursuing different brands in the market.

Parle Exports Pvt.Ltd., introduced there cola “Thumps Up” with a mighty bank saying

“Happy drinks are here again” pure drinks of Delhi also without loosing much time introduced

Campa Cola along with Campa Orange and Campa Lemon.

Modern bakeries a Government of India enterprise too entered the market with Double

Seven and Moan Marketing with Marry & Pick Up. With this in the Indian high vantage

advertising was on. The competition in the soft the peak drinks reached to stage. With Pepsi

foods entering the Indian market.

Pepsi has introduced its Cola “Lehar Pepsi” in 1989 with attractive advertisements. At

present the main competitors are Coca – Cola & Pepsi Foods.

M\S PARLE (EXPORTS) PRIVATE LIMITED:

M\S Parle (exports) Pvt. Ltd. was a 100% Indian private owned company belonging to

the Shaun brothers. It has its head quarter at Vice Parle in Bombay. Basing on that name of site

the company got its name as Parle. It started its production of soft drinks in the year 1948.

In the year 1962, the Parle group was spilt into two divisions.

1. Biscuits division

2. Soft drinks division

Again in 1966-67, bottling division was spilt into later groups.

1. Parley (exports) Pvt.Ltd. which supplies the concentrate and provides promotional activities

to all its 50 franchises and

2. Parle Beverages, which looks after its own bottling plants located in Mumbai and Delhi.

MAJOR PLAYERS IN SOFT DRINK INDUSTRY

Coca cola pvt. Limited

It has entered in to the Indian market by singing an agreement with Parle exports Limited.

Its brands are Coca Cola, Fanta, and Sprite etc. The Chairman Brothers signed an agreement

with Coca Cola and sold their best brands like Thums-up, Limca, Maaza and GoldSpot.

Cadbury Schweppes

It is the international giant to enter India soft drink market. It is a Britain conglomerate

and biggest non-cola company in the world. Its brands launched in India are Crush, Canada dry,

Lemonade and now recently Sort Cola.

Pepsi foods Private Limited

It came in to India in 1956 but could not succeed and had to leave in 1961. In the year

1990 it reentered Indian market in collaboration with Punjab Agro Industry Corporation.

OTHER PLAYERS :

Besides these established manufactures there are more than 200 units of independent manufactures of soft-drink industry. They constitute a very small market share around 4% percent of the entire drink industry.

CHAPTER-3

COMPANY PROFILE

INTRODUCTION OF COMPANY

While much of the world has changed since 1886, the pure and magic of thing stays the

same ‘C’. The name and the product represent simple moments of pleasure for consumer in

nearly 200 countries around the globe, who reach for products of the ‘C’ Company hundreds of

millions of times every single day.

John Styth Pemberton first introduced the refreshing taste of Coca-Cola Company in

Atlanta, Georgia. It was May of 1886 when the pharmacist concocted a caramel-colored syrup in

a three-legged brass kettle in his backyard. He first distributed the new product by carrying coin

jug down the street to Jacob’s pharmacy, for five cents, consumer could enjoy a glass of coat

soda fountain. Whether by designer accident, Carbonated water was teamed with new syrup,

producing a drink that was proclaimed “Delicious and Refreshing”.

Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, suggested the name and

punier “Co” in the unique flowing script that is famous worldwide today. Mr. Robinson thought

the two C’s would look well in advertising”.

By 1891, Atlanta entrepreneur Asia G. Candler had acquired complete ownership of the

‘C’ Business. Within four years, his merchandising flair helped expand consumption of Coca-

Cola to every state and territory. In 1919, the company was sold a group of investors for $25

million. Robert W. Woodruff became president of the Co Company in 1923, and his more than

six decades of leadership took the business to unrivaled heights of commercial success, making

Co an institution the world over.

HINDUSTAN COCA COLA BEVERAGES (P) LTD

The profile of CCI can be studied under two heads i.e., profile of parley (exports)

pvt.ltd. Entered into a joint venture with coca – cola in 1933. The main reason behind Parley’s

entry into this joint venture is that with the entry of two multinational companies it is difficult for

Parle to retain its bottling plants. Before the entry of Pepsi in India, Parle had 56 b.u. under its

franchise system. With Pepsi’s entry 7 of them have gone to Pepsi and Parle was left with 49 but

now if coca-cola enters India on its own, then probably another 10 but may go to it and their

result is increase in the area of operation and Parle faces the problem of loss in market share.

Many people were of the opinion that if coke enters India then Thums up will definitely

loose its hold in the market. a survey was organized by a & m in 1994; one year after launch of

coke and found that Thumps up is the most powerful soft drink brand for all three family

members polled.

With increase in the area of operation and with the capacity of the b.u’s remaining the same;

the availability of Parle products may become a problem is some area and is some seasons. In

soft drink industry, availability plays a vital role. If this aspect is overlooked; Parle definitely

foregoes its market share in the long run.

So in order to retain its position, Parle entered into a joint venture with Coca-Cola.

When we consider the above aspect, can say the Ramesh chauhan; president, Parle (exports)

pvt.ltd. Has taken a right step at the right time. Now the company’s name is coca-cola India

(CCI).

Parle was initially a confectionery company. It manufactured biscuits and chocolates;

parley’s glucose biscuits were a well known brand. There was an interesting story behind Parle’

diversification into soft drinks. Mr. Jayantilal chauhan, father of the present chief Mr. Ramesh

chauhan; once came on a business visit to madras he saw an Artos soft drink in a retail outlet

and enquirer about it.

He was surprised to know that it was local brand in south India. he wondered how a small

local brand belonging to south find a place in a metropolitan city like madras. he enquired about

the manufacturer and learnt that the plant was located at Ramachandrapuram and met

Mr.Padmanabham Raju, the owner of Artos.

He learned everything about the soft drinks from him but Mr.Raju requested to give him the

formula to prepare the concentrate. Then Mr.Chauhan came back to Bombay and turned his

attention towards soft drink parle orange in 1966, packed in 200ml glass bottle. This drink

lasted for over 10 to 12 years.

After Jayantilal Chauhan; his two sons Mr. Ramesh Chauhan and Prakash Chauhan took

over his business. Ramesh Chauhan entered the industry in 1968. Before the introduction of

thumps up; there was another cola brand at Parle pepping. But it could not stand against the

image created by coca-cola. People would not look at another cola drink except coca-cola even

after its exit. And moreover the package of pepino was also not good. So it failed

CCI operates with the franchise system there by defining the area of operation for every

franchise holder to whom it sells the concentrate. the CCI licence3d bottles buy the concentrate

from CCI Mumbai and mix it with purified sweetened and processed water, then carbonate and

fill it in A.P; there are 9 b.u’s in A.P according to their order of establishment are:

1. Hyderabad

2. Vijayawada

3. Visakhapatnam

4. Rajahmundry(the franchise under s.s.s.ltd., b.u. Vemagiri)

5. Secunderabad

6. Khammam(under the name of s.s.s.ltd.,b.u. Sathupalli)

7. Nandyala

8.kesavaram(under the name of S.S.S.Ltd., B.U.)

The targets regarding sales, marketing inputs are fixed by thumps up cci to its franchise holders

and be followed up throughout the year. The marketing program is handed over to the respective

franchise holders at the beginning of the year.

The control of CCI over its franchise exits through quality marketing program and

production. It plans the promotional activities, which have to be implemented by the franchise

holders. It directly or indirectly controls each and every aspect of their operations.

The present coca cola unit has sophisticated equipment’s that can produce 600 bottles per

minute. RGB PET bottle 100 B.P.M From this unit where coca cola products are produced by

there are

1. Coca-cola

2. Fanta

3. Sprite

4. Limca

5. Maaza

6. Thums up

7. Kinley-soda

8. Diet coke

9. Coke

Historical Development

In 1886, John Pemberton created Coca-Cola in Atlanta, Georgia, and sold it at a local

pharmacy. His partner and bookkeeper Frank Robinson named the product and drew the famous

flowing Coca-Cola script.

Atlanta entrepreneur Asa G. Candler realised the business potential of the drink and

acquired complete ownership of the Coca-Cola business for $2,300 in 1891. Within four years,

Candler’s until 1899, Coca-Cola was sold only as a fountain drink. Dubious about portable

packaging, Candler sold the bottling rights in 1899 for $1. The first two plants were in

Chattanooga, Tennessee, and Atlanta, but by 1929, 24 countries had bottling operations.

The 1916 introduction of the patented contour bottle made Coca-Cola instantly

recognisable from imitators by taste, sight and touch. The contour bottle was granted trademark

registration in 1977, an honour awarded few other packages.

In 1919, the Candlers sold the Company for $25 million to an investment group, led by

Atlanta banker Ernest Woodruff, which Robert W. Woodruff ’s more than six decades of

leadership took the business to unrivaled heights of commercial success, making Coca-Cola an

institution the world over.

Strong leadership for the Company continued through the years, and in 1981 Roberto C.

Goizueta was elected chairman and chief executive officer. He led the Company for 16 years.

During his tenure in 1988, an independent worldwide survey found that Coca-Cola was the best

known, most admired trademark in the world. And after selling a mere nine drinks a day in 1886,

sales of Coca-Cola and other Company products exceeded 1 billion servings per day by 1998.

In 2000, Doug Daft was elected the Company’s 11th chairman and CEO. In September

of that year, The Coca-Cola Company sponsored the Olympic Games in Sydney, Australia,

continuing an association that began in 1928. The Company’s Olympic involvement continued

with the 2002 Games in Salt Lake City, Utah.

In 2003, the Company launched a new marketing platform for its flagship brand. The

“Coca-Cola ... Real” campaign included new advertising, strong music and digital components,

promotions, properties, one-to-one marketing initiatives, and new packaging and graphics.

VISION

Our vision serves as the framework for our Roadmap and guides every aspect of our business by

describing what we need to accomplish in order to continue achieving sustainable, quality

growth.

People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy

people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual,

enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support

sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

MISSION

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company

and serves as the standard against which we weigh our actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference

OBJECTIVE OF THE COMPANY:

.To refresh the world- in mind, body and spirit.

Coca Cola Company is to provide the best product that they can to the public, and create

customer satisfaction. To ensure this the company ensure that all employees are working to

their highest standards to create the best product, in the quickest possible time to make sure

that there is an ability for quick distribution.

• The aim and objective of Coca-Cola Enterprises is to be the best beverage sales and

customer Service Company. To us 'best' means being the number one or second brand in

every category in which we compete, being our customers most valued supplier and

establishing a winning and inclusive culture.

• They also aim to never let their high standards of quality fail.

To do this, there are strict assessments at each stage of the production of all products at Coca

Cola production plants, throughout the day. When distributing any products, Coca Cola

arrange with the distribution companies what standards Coca Cola expect from them. This

means that the customer will always be...

• To create a value and make a difference- everywhere they engage.

• To inspire moments of optimism- through their brands and actions

HINDUSTAN COCA COLA BEVERAGES (P) LTD

ATMAKURU UNIT

COMPANY PROFILE:

Atmakuru unit operations are covered in 3 districts in Andhra Pradesh state like Krishna

Dt, Guntur Dt, and Prakasam Dt.

Atamakuru unit is located in Guntur district, Managlagiri Mandal. It is 16 kms away from

Vijayawada and 30 km below from Guntur town.

Our Greenfield project is located between the green pastures of the Atmakuru Village.

The [plant is covered on all sides with green fields, welcoming one to the plant that is known for

its Ambience,Hospitality,Professionlism & Excellence.

PHASES OF ATMKURU Unit:

Start up-march 1999

Stabilization- april-june 1999

Strengthening-July 1999-june2000.

Superiorty-July2000-June 2001

Scope

Ever since a Vijayawada operation has started, we have been trying to reach newer heights.

In this transition we have exhibited different faces, which are true reflection of phases we have

undergone.

Two erstwhile operations- Guntur and Vijayawada, after acquired by coke, were merged in to

a single operation. This consolidated operation has started in 1998 with full of challenges. As the

two old plants were not up to the KG Standards, a green field project has been initiated and this

great unit has started producing from March 1999.

Unlike other GF operations, the plant quickly went through the stabilization phase within

the record time of two months and started meeting the complete market requirements of two

territories by May 1999

Since then, the plant has made plenty of improvements to become “A plant to Quote”

with in coca-cola idea system. We are now trying to get acknowledged as the “most coveted

plant” in the division. This success story starts as

Acquired assets value:

Guntur - Rs 130 MM

Vijayawada- Rs 177 MM

Old Vijayawada plant area is 7691 Sq Mts. With a 240 bottles per min line the old

Vijayawada plant had no capability to meet either the production target or the quality

standards of the company. Old Guntur Plant area is 6520 sq mts. The plant had a 240 bottles

per min line. The status and condition of Guntur plant was very similar to that of Vijayawada

plant.

Market potential (of the Industry):

Guntur 98 - 4 MM cases

Vijayawada 98 - 3 MM cases.

Both old Vijayawada and Guntur territories had strong distribution network. On acquiring

the territories we adopted the entire distribution system to our advantage. We also acquired all

the employees (63 of Guntur and 78 of Vijayawada) of both the old plants) d and retained them

for GF operation at Vijayawada.

STARTUP PLANT DETAILS

Abundant water resource.

A zero discharge GFO.

Plant is designed for three lines.

Total plant area is 40 acres-1742, 000 Sq.Ft.

Total constructed area is 18 acres.

Current construction is for two lines

Total project cost –Rs-550 MM

600 BPM KHS line

The plant is located nearer to Krishna River and hence water is available in abundance.

Water table at the plant site is at just about 50 ft deep. We have two bore wells, each yielding

65 cubic meters per hour.

The effluent treatment plant is designed for 44.5 cubic meters per hour. In this Zeros discharge

plant; the current discharge from ETP is about 650 cubic meters per day, which issued for

cultivation inside the plant premises, across 22 acres of greenery.

The project is planned for three lines, one 600 Bottles per Minute RGB line with this plan

a total of 40 acres has been purchased. The plant-constructed are is 18 acres easy for two lines.

Now, we have single 600 bottles per minute line purchased form KHS, Germany. The

utility equipment is sized for two lines and is procured from renowned suppliers. The total

project cost is Rs 550MM.

STARTUP CHALLENGES

Lease delay in plant handover.

Plant was to face the season demand during the startup.

Transfer of old Vijayawada employees.

Transfer of old Guntur employees.

Age factor of workmen.

Training and learning.

Unionized work culture.

Wage parity and motivation.

Lend lease has brought the project closer (trial run) by middle of March. The plant produced

coke 300ml on 16 the march 1990. By March end the plant completed in the trials and started

commercial production. With little time to breathe, the plant has to quickly stabilize the

production requirements.

Plant had acquired both Guntur and Vijayawada employees along with the plants and

territories, had employees with average age of 45 and different salary structure. With no new

workforce available, old Vijayawada plant has been closed and workmen have been transferred

to GF location.

Coca-cola’s ideas:

In this backdrop, coca-cola plants to implement the following ideas, which would enable

it to further strengthen its consumer base in India Introduce its Kinely brad of water in 200ml

sachets to increase its market shares in the segment Enter the hot beverages market for coffee-tea

through vending or powder route.

Coca-cola has successfully implemented the following ideas which have aided it to

further increase its brand value entered in the powered soft drink market with its new brand sun

fill. Entered the rural market, with introduction of 200 ml and 500ml PET bottles

COMPANY GOALS

Consistent and profitable growth

Only worldwide provider of branded beverage solutions

Highest quality products and processes

OPERATING PRINCIPLES:

The Consumer Is At His Center Of Everything Company Do.

Partner throughout system to maximize cash flow on sustainable basis.

Opportunity- driven growth determines resource allocation.

Act to strengthen and protect the core branded beverage business by building Global

brands

Revenue and differential are the basis of competitive advantage.

Innovation by creating new ways to delivery value is the lynchpin of sustainable

success.

TRADE MARKS OF THE COMPANY:

The company creates demand by continually expanding the relationship that bonds the

trademarks, principally coca-cola with the 5 billion people on this planet. Everything the

company does must strengthen that bond, and it will utilize every available recourse to

expand the value o coca-cola’s trademarks in the hearts and minds of its consumers

Coca-Cola will continue to make its trademarks, and especially coca-cola, the most

recognized, most powerful commercial symbols in any market where they are present

Coca-Cola will continually strive to enhance every aspect of product and package quality

Coca-Cola will always communicate advertising messages that bond its consumers

All of these are resources available to coca-cola for creating values, but they must be jealously

guarded and enhances. Never wasted or diminished in value.

COCA-COLA’S RESOURCES:

Focusing on the key values, knowledge and skills, its people will be equipped to be good

stewards of the company’s resources. They will exhibit good stewardship by wisely

strengthening coca-cola’s trademarks and the people, building the distribution system and

intelligently allocating its resources in a manner worthy of the coca-cola’s trademarkFirst and

foremost, it will be vigilant in protecting and enhancing the company’s character and the image it

projects. Coca –cola will focus on allocating its resources in ways those consumers

Coca-cola will invest its resources, financial and otherwise in the smartest way possible.

Coca-cola will spend every dollar and working hour in the most efficient and effective way it can

Coca-cola will be good stewards of the valuable relationships that have been created over

the years with its customers. Coca-cola will help them in every way it can looking for

opportunities to make its resources available to them, understanding that its growth and

profitability are dependent upon their growth and profitability

THE LEADERSHIP:

Coca-cola people must not merely manage; they must understand their leadership role in

the context of executing the company’s mission. To do this, it must always exemplify the

necessary values, knowledge and skills. Coca-cola will do this by.Taking responsibility for

developing themselves and those people around it by creating constantly an aggressive leering

environment.

Establishing the accountability and responsibility that clearly define roles and

expectations, personalize

Asserting the coca-cola ability to develop and control system, instead of the systems

controlling the company, allowing the organization to do what it should as quickly as possible no

matter what the circumstances.

Using seamless organizational structures that breed clear and efficient communication

that does not stall action, but

Instead encourages trust and thoughtful evaluation of past and future actions. Promotion

trademark-focused behavior by rewarding effective work and discouraging mediocrity.

The company’s industry leadership must be reflected in the relationship with its bottlers

and customers, as well as in the consumer communications… but never is this stance to

accompany with slightest hints of arrogance

Coca-cola’s commitment:

In order to create value for share owners, it must also create significant, sustained, long-

term value for everyone involved in the production, distribution and selling of coca-cola

products. To do that, it pledged to;

Aggressively focus all we are and all we do on making coca-cola trademarks even more

powerful and more appreciated by each of its casters and consumers around the world

Reconfigure the global distribution system as an ongoing necessary process to deliver

most effectively and efficiently coca-cola products into the hands of the people who buy

them.