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  2. 2. APPROVAL OF AMIMT COLLEGE ------------------------------------------------------------- DR. POOJA OHRI (DIRECTOR) AMIMT ,PTKThis is to certify that we have read this report and that in our opinion it is fullyadequate in cope and quality, as a training report.----------------------------------------- -------------------------------------------- Head of the Department Coordinator of TrainingMembers of Examining Committee:Name Signature 1. ------------------------------------------ ------------------------------------ 2. ------------------------------------------ ------------------------------------ 3. ------------------------------------------ ------------------------------------ 4. ------------------------------------------ ------------------------------------Place:---------------------------------------- 2
  3. 3. ACKNOWLEDGEMENTWe think if any of us honestly reflects on who we are, how we got here,what we think we might do well, and so forth, we discover a debt toothers that spans written history. The work of some unknown person makesour lives easier every day. We believe its appropriate t o a c k n o w l e d g e a l l o fthese unknown persons; but it is also necessary toa c k n o w l e d g e those people we know have directly shaped our lives and our workFirst of all we would like to thank our teacher Mr.Rishi Dogra For their guidancethroughout the semester.Then we would like to thank our Mr.Bikramjeet Khanna for providing us theinformation that was required for completion of this project. 3
  4. 4. CERTIFICATE OF ORIGINALITYI Eshita Aggarwal Roll No 1172012 of batch 2011-2013, am a full time bonafidestudent of first year of Master of Business Administration (MBA) Programme of A&MInstitute of Management & Technology, Pathankot.I hereby certify that I have undergone summer training at COCA-COLA (KandhariBeverages) from 4th May 2012 to 2nd July 2012 and the project report title” TOANALYSE THE AVAILABLITY AT RED OUTLETS AS PER RED NORMS” submittedin partial fulfillment of the requirements of the MBA programme is an original work ofmine under the guidance of the industry mentor Mr.Bikramjeet Khanna and facultymentor Mr.Rishi Dogra, and is not based on or reproduced from any existing work ofany other person. Further, the project report is not based on or reproduced from any earlier work undertaken at any other time or for any other purpose, and has not been submitted anywhere else at any time. (Student’s Signature) (Faculty Signature) Student Name: Faculty Name: Eshita Aggarwal Rishi Dogra Date: Date: 4
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  6. 6. CONTENTS6
  7. 7. TABLE OF CONTENTS1. Introduction2. Aim & establishment of the company3. Establishment of the company4. Position in India5. Types of services/products given/products produced6. Mission statement and aim of the company7. Research methodology8. Findings9. Conclusion10. Recommendations11. Bibliography12. Appendices13. Questionnaire 7
  9. 9. INTRODUCTIONA beverage is a drink specifically prepared for human consumption. Beveragesalmost always largely consist of water. Drinks often consumed include: Water (bothflat or carbonated),Juice based drinks, Soft drinks, Sports and Energy drinks,Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy products like milk.Commonly, drinks are filled into containers, like glass or plastic bottles, steel oraluminum cans as well as cardboard supported packages, like the "TetraPack" orothers. Filling of beverages can be done cold, hot, ambient and cold-aseptic filling tomention the latest trend of beverage marketing and technology.The beverage is mainly categorized into two major categories based upon thealcoholic and nonalcoholic nature of the drink. Non-Alcoholic beverages are furthero two types based upon carbon content. These beverages contain Fruit juices,Coffee, Tea, Soda, Colas. The Alcoholic beverages are based upon the fruit contentand grain. It may be Wine, Brandy, Whisky or Beer. Beverage Non-Alcoholic Beverages Alcoholic BeveragesNon-carbonated Carbonated Fruit Based GrainFruit Juices, Colas, Wine, Beer,Coffee, Soda, Brandy WhiskyTea, Tonic Water 9PackagedWater
  10. 10. Indian Beverage IndustryIndia has a population of more than 1.150 Billions which is just behind China.According to the estimates, by 2030 India population will be around 1.450 Billionand will surpass China to become the World largest in terms of population.Beverage Industry which is directly related to the population is expected to maintaina robust growth rate. The price stability throughout the year has contributed to theincrease in domestic liquor sales.The Indian beverage market offers hot options. According to Dabur, the fruitbeverages industry in India now stands at Rs 1100 crores (approx. Euro 180 million)and the market has grown at the rate of 30% where Dabur India, through the newlaunch Real Burst, is looking at establishing a market share of 4-5% in next 2-3years.Part of the industry of fast moving consumer goods is also the beverage industry.The total beverage industry in India is being estimated to grow at 17% this year,according to experts. "Food and beverages segment has not suffered despite theslowdown in the economy. FMCG in our stores has done very well. In fact, weregistered 10-15% growth in this segment last year," said a spokesperson atSpencers Retail Ltd.Beverage majors like Coca Cola India, for example, again reported growing sales.Coca-Cola in India reported a solid first quarter 2009 results not only despite achallenging economic environment, but also with unit case volume increasing by31%. And eight quarters out of the 11 quarters had a double-digit growth.To foreign observers of the market, these figures might sound unbelievable, asWestern markets are saturated and have not seen such figures for long time. But inIndia, various positive factors drive the beverage markets. One is the rising numberof people in the middle class with extra money to spend on new beverages likewine, new brands of imported whiskey, or the fancy energy drinks, some of whichare really good to enable people to work 10
  11. 11. longer, to listen longer during conferences, and even to party longer and have fun.Leader in this segment is Red Bull, but some other good and very effective drinks,one even very healthy are already or soon entering the market.Another factor is the sheer size of the number of people in India. Even the ruralhouseholds, as long as the monsoon is good, get purchasing power and canparticipate in consumer markets. Where ever the purchasing power is still not bigenough, companies offer smaller packs for Rs. 10 or Rs. 5, especially to be seen inthe snack market. Hot summers in India also help a bit to sell beverages.The large untapped market potential for store-bought non-alcoholic beverages, inparticular carbonated beverages, juice based drinks and energy or sports drinksamong urban/suburban consumers in India.Approximately 120 billion litres ofbeverages are consumed by Indians every year, but only 5% represent store-boughtpackaged beverages. The majority of Indian consumers (75%) still consume non-alcoholic store-bought beverages ‘less than once a day’, highlighting a largeuntapped market opportunity, particularly in the carbonated drinks and juice or juice-based categories (estimated to be worth $1.5 Billion and $.25 billion respectively). Inorder to increase consumption and penetration of such beverages manufacturerswill have to address the two primary reasons why some Indians abstain entirely, thatis, health concerns and undesirable taste.The study investigates consumption frequency and habits, the importance of variousproduct attributes, and brand preferences across age, household income, city inIndia and beverage category. This study has implications for manufacturers,distributors, retailers and investors hoping to capitalize on the growth of thesebeverage categories in India and distinguish themselves in the increasingly crowdedmarketplace.India is a booming market for the beverage industry as well. It already accounts forabout ten per cent of global beverage consumption today. This means that thecountry has the third-largest beverage consumption after the USA and China. Butthat is not the end of the road. Market analyses indicate that beverage sales in India 11
  12. 12. will be increasing by more than 60 per cent between 2008 and 2012. Since India is(still) a country of tea and coffee drinkers, packaged cold drinks have enormouspotential. Packaged water, beer, spirits and carbonated drinks are recording whatrates are in some cases high double-digit growth. All in all, annual per capitaconsumption of packaged beverages is supposed to triple from 2.6 litres in 2000 to8.7 litres in 2012.Demand for milk and milk-based beverages are also rising. India is the world’sbiggest producer and consumer of milk, since milk plays a major role in the Indiandiet. The consumption of milk and milk-based beverages has increased by anannual average of 2.7 per cent in the last four years and most of them (65 per cent)are sold “loose” / unpackaged.The proportion of the market accounted for by packaged milk and dairy products areincreasing, however. In the past four years, for example, demand for milk filled inpouches has grown by 4.5 per cent annually, while the figure for milk in cartons isabout 25 per cent. The rising consumption is making it necessary for appropriateinvestments to be made by the beverage industry.The sector is highly fragmented and 95 per cent of these producers have small orvery small operations. Of this, the health beverage industry is valued at $230 million.The Indian beverage industry faces over supply in segments like coffee and tea.However, more than half of this is available in unpacked or loose form. Indian hotbeverage market is a tea dominant market. Consumers in different parts of thecountry have heterogeneous tastes. Dust tea is popular in southern India, whileloose tea in preferred in western India. The urban-rural split of the tea market was51:49 in 2000. Coffee is consumed largely in the southern states. The size of thetotal packaged coffee market is 19,600 tonnes or $87 million.The total soft drink (carbonated beverages and juices) market is estimated at 284million crates a year or $1 billion. The market is highly seasonal in nature withconsumption varying from 25 million crates per month during peak season to 15million during offseason. The market is predominantly urban with 25 per cent 12
  13. 13. contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinksmarket. Mineral water market in India is a 65 million crates ($50 million) industry. Onan average, the monthly consumption is estimated at 4.9 million crates, whichincreases to 5.2 million during peak season.Key Features of Indian BeverageIndustry Indian Beverage Market CAGR[2007-2010]:21% India ranked 3rd in largest beverage consumption after the USA and China Total Indian Beverage Consumption every year:120 billion liters Fruit Beverages Market size: Rs 1100 crores (approx. Euro 180 million) Fruit Beverage market growth rate: 30% Majority of Indian consumers:75% consume Non-alcoholic beverages and 25% Alcoholic Beverages Carbonated Drinks Market size: $1.5 Billion Juice or juice-based Drinks Market size: $.25 billion Health beverage industry is valued at $230 million Indian Beer Market Growth Rate: 7 - 8 % Milk-based beverages consumption has increased by an annual average of 2.7 per cent in the last four years Total packaged coffee market size: 19,600 tonnes or $87 million. The Indian soft drink market is worth Rs. 21,600 million a year with a growth of around 7%. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. Peak season soft drink consumption : 25 million Off-season soft drink consumption: 15 million The market is predominantly urban with 25 per cent contribution from rural areas. 13
  14. 14.  Coca cola and Pepsi dominate the Indian soft drinks market. Indian Mineral water market size : 50 million industry.Factors Driving Indian BeverageMarketIndia is a growing and developing country which is having a very high economicgrowth with the drastic increase into the population size. Due to the developingeconomic condition, there is increase in the competition among the manufacturers,retailers, dealers to promote their products at competitive prices.The increase in the India population has given a high demand of beverage marketproducts. The Indian beverage market is segmented into the two major segments –Alcoholic and Non-Alcoholic Beverages.Again these categories of beverages are sub-divided into the carbonated and fruitbased drinks.Tea and Coffee also contributed majorly into the Beverage Industry.Indian Beveragemarket distribution and marketing channel is highly networked and has a veryapproach to the customers. Due to the globalization and technologicaldevelopments there is highly innovative products are coming into the IndianBeverage markets which are appreciated by the Indian population.In India, here are various forms of beverage market get to be seem in the form ofretailers, Restaurants, Coffee shops, Sport events, Hotels etc.There are certain factors which are driving developments into the IndianBeverage sector:• Economic growth• Population growth 14
  15. 15. • Competition for Raw materials• Power of retailers• Globalization / Regionalization• Research & Development• Technological Developments• Food safety and regulation• Consumer Demands and trendsIndian Beverage Market andDistribution Network. 15
  16. 16. Issues Related to Indian BeverageMarket.  Social IssuesFor the alcohol industry the social concerns are numerous, ranging from associateddisease as well as health and safety impacts from high levels of alcoholconsumption, to under-age drinking, and in developing country contexts the portionof spending on alcohol versus basic needs.Domestic violence and an exacerbation of poverty have made alcohol abuse thesingle most important problem for women in India.The report points out that as prosperity levels increase across Asia, we can expectto see increasing levels of alcohol consumption. This presents both an opportunityfor listed companies in Asia, but given the potential negative social impacts, it alsopresents significant challenges.Soft drink companies are advised to anticipate government regulations, particularlyin relation to their marketing approaches to children. Companies need to beinnovative in creating healthier soft drink products as in the case of PepsiCo andCoca Cola focusing on a low sugar, natural sweetener for their products andVietnamese and Chinese brands tapping into the demand for alternatives tocarbonated soft drinks.Companies should assess their supply chain risks and put inplace codes of conduct, monitoring and capacity building initiatives to prevent these.As consumers become more aware of supply chain issues, good supply chainmanagement can create a competitive advantage. 16
  17. 17. Companies that rely on agricultural supply chains, particularly large numbers ofsmall holding farmers, should look to developing partnerships with government,local NGOs and international agencies to better manage social risks.Governance IssuesA typical challenge in the Indian beverage sector’s fight against corruption is thecomplex interrelationship between politics and the private sector. Stronggovernance is clearly vital for companies to ensure the integrity of theirorganizations, relationships with consumers and government authorities to avoidcorrupt business practices.Companies should look to providing more transparency and accountability in termsof the selection of board members, remuneration, links between remuneration andperformance, diversity of the board and decision making processes.Alcohol companies should ensure a high level of transparency in terms of thefinancial support provided for industry groups that in turn lobby nationalgovernments for changes in alcohol policiesCompanies should put in place initiatives and get involved in collective action toraise corporate integrity, especially in relation to corruption and bribery. Environmental IssuesCompanies need to first assess to what extent they and their suppliers depend onwater and the associated risks. This should be done in consultation with keystakeholders.Companies need to realize that global commitments to improve water efficiency canonly be implemented locally, requiring versatility and local management support.Companies should disclose water performance and the initiatives that they areputting in place. Companies need to assess their contribution to climate change, put in placemeasures to reduce emissions and waste and report on progress. 17
  18. 18. SWOT Analysis of Indian BeverageIndustry  STRENGTH • Renewal and investment • Innovation and Technological development • Experience in searching for new markets, niches and partners • Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. WEAKNESS • Old technologies and poor work organization • Insufficient pace of creation and implementation of innovations • Insufficiently effective activities of small and medium-sized businesses • Change in household consumption patternsOPPORTUNITIES • Presence of a favorable market 18
  19. 19. • Market globalization • Foreign direct investment promoting knowledge and developing export channels • Transfer of production to the countries with smaller labor costs • Well established distribution networkTHREATS • Increasing competition among exporters and decreasing dependency on one market • Intense competition between the organized and unorganized segments and low operational cost. • Water scarcity in India • Implementation of Goods and Service tax by 2011Leading PlayersThere are so many large companies present in India who are leading players in theIndian Beverages Industry. The companies are having large annual turnovers withwide range of product portfolios which include all kinds of beverage drinks fromsoda to energy drinks. These companies are having a large variety of products likesoda, water, Colas, Fruit based drinks, Lemon based drinks, Milk beverages, andFruit based wine, beer, Whisky, Coffee, and Tea etc. with so many health andenergy drinks portfolio.These companies have a strong distribution and marketing channel which supplythe beverages products to customers through retailers, Coffee shops, Restaurant,Hypermarket and Supermarkets. The segment is highly distributed all over thecountry through a long chain of retailers and suppliers who are providing veryefficient service to the company.The leading Indian Beverage sector players are as follows:1. Coca-Cola Company 19
  20. 20. 2. PepsiCo3. UB Group4. Dabur India Ltd5. TATA Global Beverages Ltd [TATA Tea]6. Nestlé India7. Café Coffee Day8. Red Bull India Pvt Ltd 20
  21. 21. Coca Cola CompanyCoca-Cola is the worlds leading beverage company. The company is theworlds leading manufacturer, marketer, and distributor of nonalcoholicbeverage concentrates and syrups, used to produce nearly 400 beverage brands.The company makes and distributes sodas, waters, fruit juice, teas and coffees andenergy drinks. Through the worlds largest beverage distribution system,consumers in more than 200 countries drink the companys beverages at a rateexceeding 1.5 billion servings each day. Major brands include Coke, Diet Coke,Sprite, Bacardi, A&W, Minute Maid, Dasani, Nestea, PowerAde and Hi C.Kandhari Beverages Pvt. Ltd.Coca-Cola was the leading soft drink brand in India until 1977, when it leftrather than reveal its formula to the Government and reduce its equity stakeas required under the Foreign Regulation Act (FERA) which governed theoperations of foreign companies in India. Coca-Cola re-entered the Indian marketon 26th October 1993 after a gap of 16 years, with its launch in Agra.An agreement with the Parle Group gave the Company instant ownership of the topsoft drink brands of the nation.With access to 53 of Parle‟s plants and a well set bottling network, an excellentbase for rapid introduction of the Company’s International brands was formed. TheCoca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca,Maaza, which were floated by Parle, as these products had achieved a strongconsumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range ofproducts of the Coca-Cola Company. KANDHARI GROUP was established in1967 by Late Mr. Teja Singh Kandhari, is presently a progressive business house inIndia. The group’s first venture was a bottling unit as a franchisee of PARLE‟s soft 21
  22. 22. drink manufacturing “ Gold Spot ” under license from PARLE established at Amritsarin the north Indian state of Punjab. Kandhari Beverages Ltd is among Coca-ColaIndias top 4 franchisee bottlers. Over a period of time, the Group ventured deep intoAerated Water business and expanded its scope of operations to other Indian statesincluding Punjab, Haryana, Chandigarh and Himachal Pradesh.In 1993, the world renowned soft drink giant - Coca-Cola entered India and boughtover PARLE brand of soft drink products, being one of the star bottlers of PARLEthe Group switched to manufacturing, bottling & marketing of Coke brand of softdrink productsDistribution Network.Direct distribution: In direct distribution, the bottling unit or the bottler partner hasdirect control over the activities of sales, delivery, and merchandising and localaccount management at the store level.Indirect distribution: In indirect distribution, an organization which is not part of theCoca-Cola system has control on one or more of the distribution elements (Sales,delivery, merchandising and local account management).Merchandising: Merchandising means communication with the consumer at thepoint of purchase to convey product benefit, value and Quality. Sales people anddelivery personnel both have this responsibility. In certain locations special teamswho go into business locations to specifically merchandise our products. 22
  23. 23. Distribution ChainCoca Cola India Co. LTD has a wide and well managed distribution network.A typical distribution chain at KO would be:Production --- Plant Warehouse --- Depot Warehouse --- DistributionWarehouse --- Retail Stock --- Retail Shelf --- ConsumerThe customers of the Company are divided into different categories and differentroutes, and every salesman is assigned to one particular route, which is to befollowed by him on a daily basis. A detailed and organized distribution systemcontributes to the efficiency of the salesmen. It also leads to low costs; higher salesand higher efficiency thereby lead to higher profits to the firm.The departments that are involved in the distribution system are shipping andwarehousing department, finance department and distribution department. 23
  25. 25. Mission of Coca-Cola CompanyFrom their heritage to their mission to the people who bring their products to thirstyconsumers, The Coca-Cola Company is a part of lives everywhere.Their Mission is“To Maximize Share-Owner Value over Time.”In order to achieve this mission, they must create value for all the constituents theyserve, including their consumers, their customers, their bottlers and theircommunities. The Coca-Cola Company creates value by executing acomprehensive business strategy guided by six key beliefs:Ø Consumer demand drives everything they do.Ø Brand Coca-Cola is the core of their business.Ø They will serve consumers a broad selection of the nonalcoholic ready-to-drinkbeverages they want to drink throughout the day.Ø They will be the best marketers in the world.Coca Cola worldwide and in India.The Coca-Cola Company is the world’s largest beverage company. Along withCoca-Cola, recognized as the world’s most-valuable brand, the Company marketsfour of the world’s top five soft drink brands, including Diet Coke, Fanta and Spriteand a wide range of other beverages, including water, juices and juice drinks, tea,coffee and sports drinks. Through one of the world’s largest beverage distributionsystem, consumers in more than 200 countries enjoy The Coca-Cola Company’sbeverages at a rate exceeding 1.6 billion servings each day.Coca-Cola in India is the country’s leading beverage Company with an unmatchedportfolio of beverages. The Company manufactures and markets leading beveragebrands like Coca-Cola, Thums Up, Fanta, Fanta Apple, Limca, Sprite, Maaza, 25
  26. 26. Minute Maid, Burn, Kinley and Georgia range of tea coffee, Nestea and Fanta FunTaste.One of the early investors in India, the Coca-Cola system provides direct andindirect employment to more than 1, 50,000 people.The Coca-Cola System in India has more than 1 million retailers and our businesshas a multiplier effect on employment and earning opportunities. Coca-Cola in Indiais the largest domestic buyer of sugar and one of the top buyers of mango pulp. TheCoca-Cola System in India business also positively impacts industries like Glass,Plastics, Resin Manufacturers, Sugar, Automobiles, White Goods Manufacturers,Banking etc.The Coca-Cola Company has always placed high value on good citizenship. At theheart of business is a mission statement called the Coca-Cola Promise - “The Coca-Cola Company exists to benefit and refresh everyone that it touches.”This basic proposition entails that the Company’s business should refresh themarkets, protect, preserve and enhance the environment and strengthen thecommunity. Coca-Cola India provides extensive support for community programsacross the country, with a focus on education, health and water conservation. TheCompany has installed more than 500 rain water harvesting structures in thecountry. The Company has also undertaken the rejuvenation and reconstruction ofseveral traditional water bodies including check dams.We are also working towards providing clean drinking water to school children inChennai and areas in West Bengal in partnership with Rotary International and UNHabitat respectively. The Company is committed to work with communities acrossIndia in its effort to contribute to mutual growth and development. 26
  27. 27. 27
  29. 29. Coca Cola Systems worldwide and inIndiaAt the core of our business in India, as in the rest of the world is our production anddistribution network, which we call the “Coca-Cola system”. Globally, the Coca-Colasystem includes our Company and more than 300 bottling partners. The Coca-ColaCompany manufactures and sells concentrate and beverage bases. Our authorizedbottlers combine our concentrate or beverage bases as the case may be withsweetener (depending on the product), water or carbonated water to producefinished beverages. These finished beverages are packaged in authorizedcontainers bearing our trademarks -- such as cans, refillable glass bottles, non-refillable PET bottlesand tetra packs -- and are then sold to wholesalers or retailers. In India, additionally,the Company also sells certain powdered beverage mixes such as Vitingo andFanta Fun Taste.Our beverages reach our ultimate consumers through our customers: the grocers,small retailers, hypermarkets, restaurants, convenience stores and millions of otherbusinesses that are the final points of distribution in the Coca-Cola system. Whattruly defines the Coca-Cola system, and indeed what makes it unique amongbusinesses, is our ability to create value for our customers and consumers.In India, the Coca-Cola system comprises of a wholly owned subsidiary of TheCoca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sellsconcentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteenauthorized bottling partners of The Coca-Cola Company, who are authorized toprepare, package, sell and distribute beverages under certain specified trademarksof The Coca-Cola Company; and an extensive distribution system comprising of ourcustomers, distributors and retailers. Coca-Cola India Private Limited sells 29
  30. 30. concentrate and beverage bases to authorized bottlers who are authorized to usethese to produce our portfolio of beverages.These authorized bottlers independently develop local markets and distributebeverages to grocers, small retailers, supermarkets, restaurants and numerousother businesses. In turn, these customers make our beverages available toconsumers across India.Company OverviewEstablished in 1886, Coca-Cola is the world’s most ubiquitous brand. The companyand its subsidiaries are present in over 200 countries employing over 49,000individuals and generating revenues to the tune of US$ 21 billion. The Coca-ColaCompany markets four of the world’s top-five soft drink brands; its beverageproducts encompass nearly 400 brands, including non-carbonated beverages suchas waters, juices, sports drinks, teas and coffees.The company’s net income registered a CAGR of 7.2 per cent over a 10-yearperiod. Till date, Coca-Cola has invested over US$ 1 billion in India and employsover 5,000 people. The Coca- Cola system in India comprises 25 wholly ownedBottling operations and another 35 franchisee-owned bottling operations. A networkof 27 contract-packers also manufactures a range of products for the company. Business in IndiaCoca-Cola is a leading player in the Indian beverage market with a 60 per centshare in the carbonated soft drinks segment, 36 per cent share in fruit drinkssegment and 33 per cent share in the packaged water segment. 30
  31. 31. Outsourcing distribution and manufacturingCoca-Cola India minimized its capital needs by meeting new manufacturing capacityneeds through external co-packers, outsourcing its distribution and meeting its in-market-refrigeration and cooling needs by giving incentives to retailers to self-fundthe same through its “Own Your Fridge Scheme.”Today, the company has an extensive rural and urban distribution network. Coca-Cola adopts a hub and spoke format distribution network ensuring that large loadstravel longer distances and short loads travel short distances. The company hasincreased its village penetration from 9 per cent in 2000 to 28 per cent in 2004 andcovers approximately 175,000 villages today. Rural India now accounts for 30 percent of Coca-Cola’s sales volumes. Factors for success 31
  32. 32. Coca-Cola has succeeded in spite of an extremely price-sensitive consumer withentrenched beverage consumption habits – tea, nimbu-paani (lemonade) and aragmented and geographically dispersed retail market, and a high tax environment. Diverse product portfolioIn keeping with its goal of emerging as the single largest entity in the beveragemarket, Coca-Cola has a presence in multiple segments. • Carbonated soft drinks (Coke, Diet Coke, Fanta, Thums Up, Sprite and Limca) • Fruit juice based drinks (Maaza) • Powdered soft drinks (Sunfill) • Coffee and tea (Georgia) • Bottled water (Kinley) and Bottled soda (Kinley Soda)The company leverages this comprehensive portfolio, which includes a mix of itsglobal brands as well as the locally acquired brands like Thums Up, Limca andMaaza • It sells these beverages in multiple volumes of 200 ml, 300ml, 500ml, 1.5 l bottles, tetra packs as well as through vendors (fountain machines) • Explores new markets with the introduction of new drinks (Georgia, coffee and tea segment) and flavors (Vanilla Coke) 32
  33. 33. TYPES OF PRODUCT33
  34. 34. TYPES OF PRODUCTS(BRANDS) 1. COCA COLAThe world’s favorite drink.The world’s most valuable brand.The mostrecognizable word across the world after OK. Coca –Cola has a trulyremarkable heritage from a humble beginning in 1886, it is now theflagship brand of the largest manufacturer, marketer and distributor ofnon- alcoholic beverages in the world. 2. THUMS UPIt is a leading sparkling soft drink and most trusted brand in India.Originally introduced in 1977, Thums up was acquired by the Coca ColaCompany in 1993.This brand known for its strong, fizzy taste and its confident,mature and uniquely masculine attitude. 3. SPRITESprite is global leader in the lemon line category, is the largest parklingbeverage brand in India. Launched in 1999, Sprite with its cut thruperspective has managed to be a true teen 34
  35. 35. FANTAFanta has entered in Indian market in the year 1993.Fanta stands for itsvibrant color, tempting taste and tingling bubblesLIMCABorn in 1971,Limca has remained unchallenged as the No. 1 sparkling Drinkin the cloudy lemon segment. The main point in the brand is the “Freshness”.PULPY ORANGEThe company developed a process that eliminated 80 % of the water in orangejuice forming a frozen concentrate that when reconstituted created orangejuice.Available in 400 ml,1 L and 1.25 L and also in PET pack size.MAAZAMango. It is a fruit associated with good times like no other. It’s called theking o fruits.KINLEYKinley water understands the importance and value of the life giving fore.Kinleywater comes with the assurance of safety from the Coca-Cola Company.Coca-Cola introduced Kinley with reverse osmosis along with latesttechnology.Available in 500ml,100ml in PET. 35
  36. 36. GEORGIA GOLDIntroduced in 2004,the Georgia gold of tea and coffee beverage is perfectsolution for the office and restaurant needs!It is available at quick servicerestaurant, Cinemas, Airports and in Coporates across all major matros inIndia.Hot Bevarges : Espresso, Americano, Cappucino, Caffe Latte, Machaccino , Hotchocolate, Cardamom TeaCold Bevarages: Iced Teas,Cold Coffee. 36
  37. 37. RED (RIGHT EXECUTION DAILY)RED (Right Execution Daily) is a measurable tool to measure sales team anddistributors performance in the outlets with respect to all parameters of sales – Cooler – Brand Pack Availability – Channel Activation • RED works on three categories : 1) Type Of Outlet (Channel)a) Grocery – Home ConsumptionPacks: PET and Mobileb) Convenience – medium / Small outlets on main roads, bus stand etc.Packs: RGB and Mobilec) Eating & Drinking – Restaurants, sweet shops, bakery etc.Packs: 300 ml & Mobile 2) There are various volume of outlet:PLATINUM: VOLUME MORE THAN 1200DIAMOND: 800 -1200CSGOLD: 500-799CSSILVER: 200-499CSBRONZE: LESS THAN 200 CS 37
  38. 38. THERE ARE 3 CONSUMER PROFILES:HIGH Income areaMIDDLE Income areaLOW Income areaTHESE ARE RED MEASURES TP PICTURE OF SUCCESS: 1. Visi-cooler presence & condition. 2. Visi-cooler position, display & Brand Order Compliance 3. Availability Standards 4. Activation Elements 5. Price communicationOn RED scoring sheet there are 3 parts: VISI-Cooler – it has to be as per standard, it should be placed in the primeposition, it is checked and other related things are considered Availability – here the availability of sparkling and stills are checked and theseare to be according to the SKU’S (STOCK KEEPING UNIT) Activation – It includes availability of flex board ,flange,3 tier racks ,shelfdisplay , cooler top , cut-case • OBJECTIVES OF RED:It lays down the standards for brand norms, in – outlet activation elementsIt lays down specific norms for enhanced in – outlet brand executionIt tracks the brands and brand pack penetrationIt allows for development of short, mid and long term strategies, tactic plansDue to audit characteristic of RED, each brand can be measured against specificexecution goals. 38
  39. 39. BENEFITS OF RED: ● RED helps to find out the promotion activities of the company and help to make relevant changes according to their rivalry company. ● This study ensures the availability of the product in the market. ● The study also helps in the evaluation of the market developer .RED helps to maintain the outlets in a well designed way to attract consumers.IMPORTANT TERMS RELATED TO CHANNELSGROCERY: Store stocking a variety of regular use household items. The channelprovides an opportunity for penetration as it propels home consumption.It includes all the kiriana stores, departmental stores, supermarkets, provision storesetc.E&D : Eating and drinking ranges from high end restaurants to small dhabas .theseoutlets offer multiple opportunities to enhance sales as people usually ordersomething to drink along with food.There are 2 types of E&D : E&D1 AND E&D2CONVIENENCE :These offer pan bidi and the stock includes cigarettes ,mint,confectionary and CSD .it also covers STD and ISD phone booths as well.customers generally drop by All day long hours for a break .this is extremely usefulin driving impulse purchase. 39
  41. 41. RESEARCH METHODOLOGYResearch design used is quantitative research design to collect and analyze data.Quantitative Research provides the researcher a clearer picture of what to expect inhis research.Quantitative Research makes use of tools such as questionnaires, surveys andother equipment to collect numerical or measurable data. Quantitative Research isobjective in approach in the sense that it only seeks precise measurements andanalysis of target concepts to answer his inquiry. Quantitative research focuses onnumbers or quantities. Quantitative studies have results that are based on numericanalysis and statistics. Certain characteristics of quantitative research are:  Objective  Research questions: How many? Strength of association?  Measurable  Report statistical analysis  Basic element of analysis is numbers  Generalizations leading to prediction, explanation, and understanding  Highly controlled setting: experimental setting (outcome oriented)  Sample size - nDATA COLLECTION FROM SECONDARY SOURCEData for secondary research was collected from company brochures, magazines,journals, internal sources, internet articles and journals.The data collection mainly focused on  History of COCA- COLA.  Brief details about the various products in carbonated and non- carbonated segment.  The Marketing strategy adopted by COCA – COLA 41
  42. 42. DATA COLLECTION FROM PRIMARY SOURCESTo know the Brand-Pack Wise Availability fo Coca-Cola Products at RED Outlets. Ithas to be found out that which all Flavours of Sparkling and Juices are available onEach Outlet as per RED Norms requirement and Similarly which all Packs areavailable. This Data will help in analysing the status of Execution in ChandigarhCity.Questionnaire is the primary method used for data collection.The Questionnaire was designed by focusing on RED Norms. It has been ensuredthat all Brand-Pack wise Availability Parameters should be covered.SAMPLING TECHNIQUESSample means a subgroup of elements of a population selected for participation inthe study. And number of elements to be included in the study is known as samplesize.A sample of the entire population is taken to analyse the Brand-Pack Availability ofCoca-Cola Products at RED Outlets.Sampling involves obtaining insight and knowledge of the needs and wants of thecustomer by taking a subset of the population. Preferably, the subset should beheterogeneous to know the exact demand of the customer.Sampling Method: Stratified Random Sampling MethodSample Size: 100Sample Unit: All Retailers who are Considered as Red Outlets, i.e Outlets with Visi-Cooler. 42
  43. 43. 43
  45. 45. ANALYSIS AND DISCUSSIONSGRAPH 1:200ML AVAILABILITY PACKWISE:DESCRIPTION: The availability is low because the retailers are not ready to keep200ml bottles because of two reasons, One they think that the Margins is low ascompare to 300ml RGB, secondly it’s the Price Factor as 200ml is to be sell at 8Rs,so 2 Rs change is a big problem. 45
  46. 46. GRAPH 2:300ML AVAILABILITY PACKWISE:DESCRIPTION:300ml is the only RGB pack which is selling these days, It is beenseen that it was available in all Brands in almost 30-40% Outlets in Chd. 46
  47. 47. GRAPH 3:300ML(CAN) AVAILABILITY PACKWISE:DESCRIPTION: Cans are outsourced due to which the availability of cans is lowand Secondly cans are first distributed to key outlets like DT mall, Subway etc. 47
  48. 48. GRAPH 4:500ML AVAILABILITY PACKWISE:DESCRIPTION:500ml Pack is considered as the most convenient and mostconsumable pack. Now a day’s consumers and retailer both see this pack as easyto carry and one shot drinking pack. 48
  49. 49. GRAPH 5:600ML AVAILABILITY PACKWISE:DESCRIPTION:The demand of Kinley soda is very low as there are many othercompetitors in the market like Lehar soda which are available in very low prices. 49
  50. 50. GRAPH 6:1.25LTR AVAILABILITY PACKWISE:DESCRIPTION:1.25ltr is available in almost all Brands, but it was available in only30-40% outlets. One reason for the same could be that 2ltr is taking its place forhome consumption. 50
  51. 51. GRAPH 7: 2LTR AVAILABILITY PACKWISE:DESCRPTION:Now a days 2ltr pack is more considered as home consumptionpack and it has started taking place of 1.25ltr. Because of quantity factor consumeralso focus on this pack for home consumption. 51
  52. 52. GRAPH 8:400ML AVAILABILITY PACKWISE:DESCRIPTION:400ml is a new product in the market which is very well accepted formmpo and Mmnf because this pack size doesn’t have competition in market whereas for maaza the pack size is not acceptable because of the look. 52
  53. 53. GRAPH 9:COKE AVAILABILITY BRANDWISEDESCRIPTION:Coke is a Brand Product of the company .It covers a very goodmarket and all packs are available across the market except in 200ml. 53
  54. 54. GRAPH 10:LIMCA AVAILABILITY BRANDWISEDESCRIPTION:Limca is a Hot Selling Product of the company. It is also a mostpreferred product in summers. So the availability is seen & only the concern area is200ml RGB. 54
  55. 55. GRAPH 11:FANTA AVAILABILITY BRANDWISEDESCRIPTION:Apart from 500ml, Fanta is getting tough competition from mirindabecause of which the visibility is low. 55
  56. 56. GRAPH 12:SPRITE AVAILABILITY BRANDWISEDESCRIPTION:Sprite acceptability is a lemon flavor which is going high day by day,the only concern area is the regular supply of the same. 56
  57. 57. GRAPH 13:THUMS UP AVAILABILITY BRANDWISEDESCRIPTION:Thums up has its own customers since its strongest productavailable in the market So availability in all pack sizes is visible. 57
  58. 58. GRAPH 14:SODA AVAILABILITY BRANDWISEDESCRIPTION:The demand of Kinley soda is very low as there are many othercompetitors in the market like Lehar soda which are available in very low prices.GRAPH 15:MAAZA AVAILABILITY BRANDWISE 58
  59. 59. DESCRIPTON:It is one of the favorable mango juice .its availability is easily seen allacross in all packs.Though the most acceptable pack is 600ml. 59
  60. 60. FINDINGS60
  61. 61. FINDINGS• The all over availability of 200ml is very low.• The highest demand is in 500ml Pet in all flavors.• Coke covers the best market among all the flavors as it is the brand product of the company.• Kinley soda has many local and other competitors due to which it has low demand.• Juices has many other competitors like Tropicana and real with many flavors which lower down the demand as well as the availability. 61
  62. 62. CONCLUSIONS62
  63. 63. CONCLUSIONS• COKE is most popular amongst its users mainly because of its TASTE, BRAND NAME, INNOVATIVENESS Thus it should focus on good taste so that it can capture the major part of the market. In today’s scenario, customer is the king because he has got various choices around him. If you are not capable of providing him the desired result he will definitely switch over to the other provider. Therefore to survive in this cutthroat competition, you need to be the best. Customer is no more loyal in today’s scenario, so you need to be always on your toes. We feel that there is cutthroat competition between COKE & PEPSI so to be on top of mind of the customers they need to do something outstanding every time.• The best thing that consumers like about the Coca cola brand is their promotions and availability. Suggestions are given by the consumers to improve the quality of the product and to reduce price of its different packaging.• Because of increasing health awareness, some consumers do not like drinking sparkling drinks and prefer juice drinks.• Coca Cola is more famous for its sparkling drinks. In the previous few years it has come up with juice drinks, energy drinks, tea and coffee. Some of these products are popular among consumers whereas the rest still have to be accepted by the consumers. 63
  65. 65. RECOMMENDATIONSThis is one of the most important and most difficult part of the study. I arrived atcertain recommendations for COCA-COLA co India after the analysis of the data.Some of the important recommendations are as follows. • Many complains of retailer does not listen by the company. So it should be taken into consideration. • Company does not provide all stock. So it should be delivered on time as well as much required by the retailer. • Some Retailers wants large size of visi coolers. So this should be also taken into consideration. • Customer grievances are also not properly listened by merchandiser which effects hold of the customer with the company. • We need to come up with more pack sizes because RGB is losing its market. • As already mentioned Visi-coolers are a major reason of dissatisfaction among the retailers. The periodical maintenance check of Visi-coolers should be done. • We need to come with more flavors because Real Juices and Tropicana Juices are leading the market with 12-15 flavors. 65
  66. 66. • We need to focus on margins because retailers go their where they get high margins on product.• We must visit all RED outlets where the activation elements are missing and it must be activated immediately.• The company should make hindrance free arrangement for its customers to make any feedback or suggestions.• The visibility of any product plays an important role in making the customer, aware about it and is vital for the growth and development of any product.• A strong watch should be kept on distributors also, because in some cases they are found to be cheating the retailers and affecting the goodwill of the BRAND. 66
  67. 67. BIBLIOGRAPH Y67
  68. 68. BibliographyBooksMarketing management-“Philip-Kotler”Research methodlogy - 68
  69. 69. APPENDICES69
  70. 70. Appendices 1. Tetra trans-european trunked radio access 2. RGB Returnable glass bottle 3. PET Polyethylene Terephthalate 70
  72. 72. Is 2 facings chilled brand coke available? Yes/No 72