Passive Income System 2.0 Digital: Effortless Earnings
Summer internship-project-on-cocacola by Rohan Silvenia
1. "STUDY ON ROLE OF MARKETING CAMPAIGNS IN SALES
PROMOTION OF COCA-COLA BEVERAGES"
FOR
Hindustan Coca-Cola Beverages Pvt. Ltd.
Summer Project Report submitted in partial
fulfillment of the requirement for the Degree
of
MASTER OF BUSINESS ADMINISTRATION
SESSION (2020-2022)
Rohan Mrs. Sakshi Sharma
200037070002 (Assistant Professor)
2000370700089
IME College, Ghaziabad
(Affiliated to Dr. A.P.J. Abdul Kalam Technical University, Lucknow)
3. 2
DEPARTMENT OF MANAGEMENT
CERTIFICATE
This is to certify that the Project Report entitled STUDY ON ROLE OF MARKETING CAMPAIGNS IN
SALES PROMOTION OF COCA-COLA BEVERAGES
submitted by ROHAN enrolment no -2000370700089 for partial fulfillment of the requirement of MBA,
embodies the bonafide work done by his/her under my supervision.
(Signature)
Ms Sakshi Sharma
(Assistant Professor)
4. 3
DECLARATION
I hereby declare that the work presented in this report entitled “STUDY ON ROLE OF MARKETING
CAMPAIGNS IN SALES PROMOTION OF COCA-COLA BEVERAGES ", was carried out by me. I
have not submitted the matter embodied in this report for the award of any other degree or diploma of
any other University or Institute.
I have given due credit to the original authors/sources for all the words, ideas, diagrams, graphics,
computer programs, experiments, results, that are not my original contribution.
I have used quotation marks to identify verbatim sentences and given credit to the original
authors/sources. I affirm that no portion of my work is plagiarized, and the experiments and results
reported in the report are not manipulated. In the event of a complaint of plagiarism and the
manipulation of the experiments and results, I shall be fully responsible and answerable.
Name : ROHAN
Enroll. No. : 2000370700089
Programme: MBA
(ROHAN)
5. 4
ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people, who directly or indirectly contributed in the
development of this work and who influenced my thinking, behavior, and acts during the course of
study.
I am thankful to Mr Sachin Verma for his/her support, cooperation and motivation during the training
and for constant inspiration, presence and blessings.
I also extend my sincere appreciation to Mrs Sakshi Vardhan who provided her valuable suggestions
and precious time in accomplishing my project report.
Lastly, I would like to thank the almighty and my parents for their moral support and my friends with
whom I shared my day-to-day experience and received lots of suggestions that improved my quality
of work.
Rohan
6. 5
PREFACE
As a part of the MBA Curriculum and in order to gain practical Knowledge in the field of
management, I am required to make a report on “ SUMMER INTERSHIP PROJECT REPORT ”
The Basic Objective behind doing this project report is to get knowledge in the field of
“MARKETING ”.
In this project report I have included various concepts, effects and implications regarding “STUDY
ON ROLE OF MARKETING CAMPAIGNS IN SALES PROMOTION OF COCA-COLA
BEVERAGES” of the company.
Doing this Project report helped me to enhance my knowledge regarding the work and in the
assessment of overall performance of the company. Through this report I came to know about the
importance of analysis of performance of business, team work and role of devotion towards the
work.
7. 6
INDEX
Sr. No. Particulars Page No.
PART-I General Information
1. Industry Overview 9
1.1 : Beverage Industry in India
11
1.2: Growth And Performance of Industry
13
1.3: Major Market Players in Industry 16
2.
Company Overview
17
2.1 : History: Coca-Cola- International
18
22: History: Coca-Cola – INDIA 25
2.3: Coca-Cola System Worldwide and in India 27
2.4: About Hindustan Coca-Cola Beverages Pvt. Ltd. 28
2.5: Hierarchy of the Organization
31
2.6: Growth and Development 32
2.7: Performance Highlights (Jan 2020) 33
2.8: Product Profile 35
2.9: Departmental Overview 38
2.10: SWOT Analysis 47
2.1 1 : About Competitors 49
PART-II Research Work
3. Introduction of the Study 51
3.1 : Background of The Study 52
3.2: Statements of The Problems 53
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3.3: Objectives of the Study
53
4. Research Methodology 55
4.1: Introduction 55
4.2: Research Design 55
4.3: Scope of The Study 55
4.4: Data Collection
55
4.5: Instrument for Data Collection 57
5. About Marketing Campaigns 59
5.1: Campaign 1: "Shop in Shop Activity" 61
5.1.6: Data Analysis and Interpretation of S-I-S
66
5.1.7: Result and Findings 67
5.2: Campaign 2 "Horizontal Expansion 70
6. Suggestions and Recommendations
79
7. Limitations of The Study
81
8. Conclusion
82
10. Bibliography 83
11. Annexure 86
11. 10
FMCG Industry
Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than groceries/pulses)
that one needs to buy at regular intervals. These are items which are used daily, and so have a quick
rate of consumption, and a high return. FMCG can broadly be categorized into three segments which
are:
• Household items as soaps, detergents, household accessories, etc,
• Personal care items as shampoos, toothpaste, shaving products, etc and finally
• Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.
Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt
Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi,
Gillette etc.
Overview :
The burgeoning middle class Indian population, as well as the rural sector, presents a huge potential
for this sector. The FMCG sector in India is at present, the fourth largest sector with a total market
size in excess of USD 13 billion as of 2012. This sector is expected to grow to a USD 33 billion
industry by 201 5 and to a whooping USD 100 billion by the year 2025.
This sector is characterized by strong MNC presence and a well established distribution network. In
India the easy availability of raw materials as well as cheap labor makes it an ideal destination for
this sector. There is also intense competition between the organized and unorganized segments and
the fight to keep operational costs low.
A look at some factors that will drive growth in this sector:
• Increasing rate of urbanization, expected to see major growth in coming years.
• Rise in disposable incomes, resulting in premium brands having faster growth and deeper
penetration.
• Innovative and stronger channels of distribution to the rural segment, leading to deeper
penetration into this segment.
• Increase in rural non-agricultural income and benefits from government welfare programs.
• Investment in stock markets of FMCG companies, which are expected to grow constantly.
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Some of the challenges this sector is likely to face are:
• Increasing rate of inflation, which is likely to lead to higher cost of raw materials.
• The standardization of packaging norms that is likely to be implemented by the Government by 2020
is expected to increase cost of beverages, cereals, edible oil, detergent, flour, salt, aerated drinks and
mineral water.
• Steadily rising fuel costs, leading to increased distribution costs.
• The present slow-down in the economy may lower demand of FMCG products, particularly in the
premium sector, leading to reduced volumes.
• The declining value of rupee against other currencies may reduce margins of many companies, as
Marico, Godrej Consumer Products,
Colgate, Dabur, etc who import raw materials.
In conclusion:
This sector will continue to see growth as it depends on an ever-increasing internal market for
consumption, and demand for these goods remains more or less constant, irrespective of recession or
inflation. Hence this sector will grow, though it may not be a smooth growth path, due to the present
worldwide economic slowdown, rising inflation and fall of the rupee. This sector will see good
growth in the long run and hiring will continue to remain robust.
1.1: Beverage Industry in INDIA: A BRIEF INSIGHT
n 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.
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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
• In-home consumption and out of home on premises consumption
• Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
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• Segmentation based on the amount of consumption i.e. high levels of consumption 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 is important 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 of the 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.
1.2; Growth and Performance of Beverage Industry
"Indian beverage industry's double-digit growth will continue, says IBA"
April 13, 2020
The Indian Beverage Association (IBA) expects the country's beverage industry to continue to grow
in double digits in 2020, despite the recessionary trends being shown by most economies the world
over, including the Indian economy.
Speaking at an IBA-organised seminar titled 'Agenda for Growth: Indian Beverage Industry —
Leveraging International Practices' in Delhi, experts from the beverage industry stated that it could
witness a revolution, fuelled by changing lifestyles, a growing middle-class, rapid urbanisation and
increased disposable incomes.
Participants in the seminar included Rakesh Kacker, secretary, Ministry of
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Food Processing Industries, Government of India; K Chandramouli, chairman, Food Safety and
Standards Authority of India (FSSAI); Geoff Parker, president, International Council of Beverages
Associations, and Patricia Vaughan, senior vice-president, American Beverage Association.
The non-alcoholic ready-to-drink beverage segment has been growing at a compound annual
growth rate (CAGR) of 13 per cent since 2009, and is one of the segments that have defied the
slowing economic growth.
Arvind Varma, secretary general, IBA, said, 'The non-alcoholic ready-to-drink beverage industry is
one of the largest investors in the country and has contributed significantly to the growth of allied
industries. This industry is witnessing robust growth, driven by a combination of factors such as
increased investments and innovations.
"However, the government needs to take a long-term view on the industry while formulating
policies or else there is a chance this industry's growth may get derailed," he stated.
IBA aims to act as a catalyst to enable the non-alcoholic beverage industry to play an increasingly
significant role in the growth of the economy, by providing
employment opportunities and driving income growth and therefore has raised its expectations
with the government authorities," Varma added.
IBA's suggestions
At the deliberations in the seminar, speakers observed that the macroindicators and the
demographic dividends favour robust growth for the beverage industry in India.
"With an enabling policy regime, which includes a more rational tax structure, frequent
consultations with the industry on food regulations, giving the industry its due recognition as
manufacturers of high quality, healthy and nutritious products as well as life-critical products like
water, will further help the industry realize its potential," IBA stated.
As an industry that has strong backward linkages with agriculture, its growth will also benefit
millions of farmers across the country.
GST
One of the key areas where the beverage industry expects central and state government
intervention is goods and service tax (CST) and direct tax code (DTC).
The beverage industry has learnt that a single rate for both Central GST and state GST, which was
proposed earlier, is reportedly being talked about as three different rates. This defies economic
16. 15
logic and is indicative of difficulty in moving forward the proposal of a Constitutional amendment in
Parliament.
BA also suggested that the beverage industry be made a key stakeholder in the introduction of GST,
and should be a natural partner in the process of consultation while formulating the plan and roll-
out of GST. The extent of involvement of industry currently in the consultation process needs to be
scaled up and made more intense and frequent.
VAT
The value-added tax (VAT) rate of six per cent is applicable to fruit juice and fruit juice-based drinks.
Despite the states coming to an understanding that VAT would be charged at the rate of six per
cent on fruit juice and fruit juicebased drinks, some states have increased the VAT substantially. The
move to increase VAT on fruit juice and fruit juice-based drinks will subvert the growth of the juice
industry as also the development of the fruit and vegetable processing industry.
The soft drink industry is already reeling under margin pressure due to the high rate of taxes it is
paying to the Central and state governments, but some states have also increased the VAT on
carbonated soft drinks.
This increase in taxes will, therefore, have to be passed on to the consumer leading to an increase
in the price of the soft drinks, which will restrict purchase of soft drinks by the general mass.
This, in turn, will have an adverse effect on the beverage industry and industries that depend on the
beverage industry. An increase in price also favors spurious manufacturers to sell their products on
the basis of cost arbitrage.
Industry players also felt that their prowess in research and development would help them move
beyond global brands and develop local, indigenous product to suit regional palates, thereby driving
further growth in the market. These innovations are meant to address the low per-capita
consumption of packaged beverages and will create both a direct and an indirect impact.
Regulatory aspect
The industry also expects that the food safety authorities remove roadblocks and provide much
faster clearances and approvals on ingredients and new products, without compromising the safety
and quality of new products.
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This is most relevant in case of proprietary foods, where inordinate delays result in food and
beverage companies having to wait for many months before launching new products.
BA also suggested that CODEX should be made a reference point for national food control agencies.
The international food standards, guidelines and codes of practice laid down by CODEX contribute
to the safety, quality and fairness of international food trade.
Referring to CODEX will help the Indian beverage industty contribute a higher share to the global
food and beverage trade, which is estimated at $200 billion dollars.
1.3; Major Market Players in Industry
Followings are major players in beverage industry:
1. The Coca-Cola Company
2. PepsiCo
3. Nestlé
4. Suntory Holdings (Suntory)
5. Dr Pepper Snapple (DPS)
6. Red Bull
7. Groupe Danone (Danone)
8. Kirin Holdings (Kirin)
9. Asahi Breweries (Asahi)
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2.1 History: Coca-Cola Company- INTERNATIONAL
Coca-Cola Enterprises, established in 1886, is a young company by the standards of the Coca-Cola
system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the
foundation for this Company.
The Coca-Cola Company traces it's beginning to 1886, when an Atlanta pharmacist, Dr. John
Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling
business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B.
Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States
from The Coca-Cola Company.
The Coca-Cola bottling system continued to operate as independent, local businesses until the early
1980s when bottling franchises began to consolidate. In 1 986, The Coca-Cola Company merged
some of its companyowned operations with two large ownership groups that were for sale, the John
T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola
Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-
adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986.
In December 1991, a merger between Coca-Cola Enterprises and the
Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again
helping accelerate bottler consolidation. As part of the merger, the senior management team of
20. 19
Johnston assumed responsibility for managing the Company, and began a dramatic, successful
restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion.
The Coca-Cola Company is the world's largest beverage company. They operate in more than 200
countries & markets more than 3500 beverage products. Headquartered at Atlanta, Georgia, they
have approximately
146,200 employees all over the world. It is often referred to simply as Coke or in European and
American countries) as Cola or Pop.
Heritage timeline:
1886-1892:
t was 1886, and in New York Harbor, workers were constructing the Statue of Liberty. Eight
hundred miles away, another great American symbol was about to be unveiled.
Like many people who change history, John Pemberton, an Atlanta pharmacist, was inspired by
simple curiosity. One afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was
done, he carried it a few doors down to Jacobs' Pharmacy. Here, the mixture was combined with
carbonated water and sampled by customers who all agreed this new drink was something special. So
Jacobs' pharmacy put it on sale for five cents a glass.
Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola@, and wrote it out in his
distinct script. To this day, Coca-Cola is written the same way. In the first year, Pemberton sold just
9 glasses of Coca-Cola a day.
A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup.
Unfortunately for Pemberton, he died in 1888 without realizing the success of the beverage he had
created.
Over the course of three years, 1888-1891 , Atlanta businessman Asa Griggs Candler secured rights
to the business for a total of about $2,300. Candler would become the Company's first president, and
the first to bring real vision to the business and the brand.
1893-1904:
Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention into a business.
He knew there were thirsty people out there, and Candler found brilliant and innovative ways to
introduce them to this exciting new refreshment. He gave away coupons for complimentary first
21. 20
tastes of Coca-Cola, and outfitted distributing pharmacists with clocks, urns, calendars and
apothecary scales bearing the Coca-Cola brand. People saw Coca-Cola everywhere, and the
aggressive promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and Los
Angeles.
Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In 1894, a
Mississippi businessman named Joseph Biedenharn became the first to put Coca-Cola in bottles. He
sent 12 of them to Candler, who responded without enthusiasm. Despite being a brilliant and
innovative businessman, he didn't realize then that the future of Coca-Cola would be with portable,
bottled beverages customers could take anywhere. He still didn't realize it five years later, when, in
1899, two Chattanooga lawyers, Benjamin F. Thomas and Joseph B. Whitehead, secured exclusive
rights from Candler to bottle and sell the beverage for the sum of only one dollar.
1905-1918:
mitation may be the sincerest form of flattery, but The Coca-Cola Company was none too pleased
about the proliferation of copycat beverages taking advantage of its success. This was a great
product, and a great brand. Both needed to be protected. Advertising focused on the authenticity of
Coca-Cola, urging consumers to "Demand the genuine" and 'Accept no substitute."
The Company also decided to create a distinctive bottle shape to assure people they were actually
getting a real Coca-Cola. The Root Glass Company of Terre Haute, Indiana, won a contest to design
a bottle that could be
recognized in the dark. In 1916, they began manufacturing the famous contour bottle. The contour
bottle, which remains the signature shape of Coca-Cola today, was chosen for its attractive
appearance, original design and the fact that, even in the dark, you could identify the genuine article.
As the country roared into the new century, The Coca-Cola Company grew rapidly, moving into
Canada, Panama, Cuba, Puerto Rico, France, and other countries and U.S. territories. In 1 900, there
were two bottlers of Coca-Cola; by 1920, there would be about 1 ,000.
1919-1940:
Perhaps no person had more impact on The Coca-Cola Company than
Robert Woodruff. In 1923, four years after his father Ernest purchased the Company from Asa
Candler, Woodruff became the Company president. While Candler had introduced the U.S. to Coca-
Cola, Woodruff would spend more than 60 years as Company leader introducing the beverage to the
world beyond.
Woodruff was a marketing genius who saw opportunities for expansion everywhere. He led the
expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the Olympic Games for the
first time when CocaCola traveled with the U.S. team to the 1928 Amsterdam Olympics. Woodruff
pushed development and distribution of the six-pack, the open top cooler, and many other
22. 21
innovations that made it easier for people to drink Coca-Cola at home or away. This new thinking
made Coca-Cola not just a huge success, but a big part of people's lives.
1941-1959:
n 1941, America entered World War Il Thousands of men and women were sent overseas. The
country, and Coca-Cola, rallied behind them. Woodruff ordered that "every man in uniform gets a
bottle of Coca-Cola for 5 cents, wherever he is, and whatever it costs the Company." In 1943,
General Dwight
D. Eisenhower sent an urgent cablegram to Coca-Cola, requesting shipment of materials for 10
bottling plants. During the war, many people enjoyed their first taste of the beverage, and when
peace finally came, the foundations were laid for Coca-Cola to do business overseas.
Woodruff's vision that Coca-Cola be placed within "arm's reach of desire," was coming true — from
the mid-1940s until 1960, the number of countries with bottling operations nearly doubled. Post-war
America was alive with optimism and prosperity. Coca-Cola was part of a fun, carefree American
lifestyle, and the imagery of its advertising happy couples at the drive-in, carefree moms driving big
yellow convertibles - reflected the spirit of the times.
1960-1981 :
After 70 years of success with one brand, Coca-Cola@, the Company decided to expand with new
flavors: Fanta@, originally developed in the 1940s and introduced in the 1950s; Sprite@ followed in
1961, with TAB@ in 1963 and Fresca@ in 1966. In 1960, The Coca-Cola Company acquired The
Minute Maid Company, adding an entirely new line of business — juices to the Company.
The Company's presence worldwide was growing rapidly, and year after year, Coca-Cola found a
home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more.
Advertising for Coca-Cola, always an important and exciting part of its business, really came into its
own in the 1970s, and reflected a brand connected with fun, friends and good times. The
international appeal of CocaCola was embodied by a 1971 commercial, where a group of young
people from all over the world gathered on a hilltop in Italy to sing '"I'd Like to Buy the World a
Coke."
n 1978, The Coca-Cola Company was selected as the only Company allowed to sell packaged cold
drinks in the People's Republic of China.
1982-1989:
The 1980s the era of legwarmers, headbands and the fitness craze, and a time of much change and
innovation at The Coca-Cola Company. n 1981 Roberto C. Goizueta became chairman of The Board
of Directors and CEO of The Coca-Cola Company. Goizueta, who fled Castro's Cuba in 1 961
completely overhauled the Company with a strategy he called "intelligent risk taking."
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Among his bold moves was organizing the numerous U.S. bottling operations into a new public
company, Coca-Cola Enterprises Inc. He also led the introduction of diet Coke@, the very first
extension of the Coca-Cola trademark; within two years, it had become the top low-calorie drink in
the world, second in success only to Coca-Cola.
One of Goizueta's other initiatives, in 1 985, was the release of a new taste for Coca-Cola, the first
change in formulation in 99 years. In taste tests, people loved the new formula, commonly called
"new Coke." n the real world, they had a deep emotional attachment to the original, and they begged
and pleaded to get it back. Critics called it the biggest marketing blunder ever. But the Company
listened, and the original formula was returned to the market as Coca-Cola classic@, and the product
began to increase its lead over the competition — a lead that continues to this day.
1990-1999:
The 1990s were a time of continued growth for The Coca-Cola Company. The Company's long
association with sports was strengthened during this decade, with ongoing support of the Olympic
Games, FIFA World Cup TM football (soccer), Rugby World Cup and the National Basketball
Association. CocaCola classic became the Official Soft Drink of NASCAR racing, connecting the
brand with one of the worlds fastest growing and most popular spectator sports.
And 1993 saw the introduction of the popular "Always Coca-Cola" advertising campaign, and the
world met the lovable Coca-Cola Polar Bear for the first time. New markets opened up as Coca-Cola
products were sold in East Germany in 1990 and returned to India in 1993.
New beverages joined the Company's line-up, including Powerade sports drink, 000 children's fruit
drink and Dasani bottled water. The Company's family of brands further expanded through
acquisitions, including Limca, Maaza and Thums Up in India, Barq's root beer in the U.S., Inca Kola
in Peru, and Cadbury Schweppes' beverage brands in more than 120 countries around the world. By
1997, the Company already sold 1 billion servings of its products every day, yet knew that
opportunity for growth was still around every corner.
2000-Now:
n 1886, Coca-Cola@ brought refreshment to patrons of a small Atlanta pharmacy. Now well into its
second century, the Company's goal is to provide magic every time someone drinks one of its more
than 500 brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking brands such as
Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you can still find Coca-
Cola.
Coca-Cola is committed to local markets, paying attention to what people from different cultures and
backgrounds like to drink, and where and how they want to drink it. With its bottling partners, the
Company reaches out to the local communities it serves, believing that Coca-Cola exists to benefit
and refresh everyone it touches.
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From the early beginnings when just nine drinks a day were served, CocaCola has grown to the
world's most ubiquitous brand, with more than 1 7 billion beverage servings sold each day. When
people choose to reach for one of The Coca-Cola Company brands, the Company wants that choice
to be exciting and satisfying, every single time.
Mission, Vision and Values (Global)
The world is changing all around us. To continue to thrive as a business over the next ten years and
beyond, we must look ahead, understand the trends and forces that will shape our business in the
future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's
what our 2020 Vision is all about. It creates a long-term destination for our business and provides us
with a "Road map" for winning together with our bottling partners.
Our Mission:
Our Road map starts with our mission, which is enduring. t 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.
Our Vision:
Our vision serves as the framework for our Road map 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
2029
VISION
25. 24
• 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 share owners while being mindful of our overall
responsibilities
• Productivity: Be a highly effective, lean and fast-moving organization Our Winning Culture:
Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020
Vision a reality.
Live Our Values:
Our values serve as a compass for our actions and describe how we behave in the world.
• Leadership: The courage to shape a better future
• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, its up to me Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well
Focus on the Market:
• Focus on needs of our consumers, customers and franchise partners
• Get out into the market and listen, observe and learn
• Possess a world view
• Focus on execution in the marketplace every day
26. 25
• Be insatiably curious Work Smart:
• Act with urgency
• Remain responsive to change
• Have the courage to change course when needed
• Remain constructively discontent
• Work efficiently
Act like Owners:
• Be accountable for our actions and in actions
• Steward system assets and focus on building value
• Reward our people for taking risks and finding better ways to solve problems
• Learn from our outcomes what worked and what didn i
t
Be the Brand:
• Inspire creativity, passion, optimism and fun
2.2 History: Coca-Cola - INDIA
The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India
Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to
foreign investments in 1991. Since then its operations have grown rapidly through a model that
supports bottling operations, both company owned as well as locally owned and includes over 7,000
Indian distributors and more than 2.2 million retailers. Today, our brands are the leading brands in
most beverage segments. The Coca-Cola Company's brands in India include Coca-Cola, Fanta
Orange,
Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu
Fresh and the Georgia Gold range of teas and coffees and Vitingo (a beverage fortified with micro-
nutrients).
27. 26
In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company
namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and
powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan CocaCola
Beverages Pvt. Ltd; thirteen authorized bottling partners of The CocaCola Company, who are
authorized to prepare, package, sell and distribute beverages under certain specified trademarks of
The Coca-Cola Company; and an extensive distribution system comprising of our customers,
distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to
authorized bottlers who are authorized to use these to produce our portfolio of beverages. These
authorized bottlers independently develop local markets and distribute beverages to grocers, small
retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our
beverages available to consumers across India.
The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry into
India. The company will be investing another USD 5 Billion till the year 2020. The Coca-Cola
system in India directly employs over
25,000 people including those on contract. The system has created indirect employment for more
than people in related industries through its vast procurement, supply and distribution system. We
strive to ensure that our work environment is safe and inclusive and that there are plentiful
opportunities for our people in India and across the world. The beverage industry is a major driver of
economic growth. A National Council of Applied Economic Research (NCAER) study on the
carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2.1. This
means that if one unit of output of beverage is increased, the direct and indirect effect on the
economy will be twice of that. In terms of employment, the NCAER study notes that "an extra
production of 1000 cases generates an extra employment of 41 0 man days.'
As a Company, our products are an integral part of the micro economy particularly in small towns
and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is amongst the
largest domestic buyers of certain agricultural products.
As an industry which has strong backward and forward linkages, our operations catalysis growth in
demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural
products. Our operations also lead to incremental growth for enterprises engaged in postproduction
activities like merchandising, marketing and sales. In addition, we share best practices and
technological advancements with our suppliers, vendors and allied industries which often lead to
improvement in the overall standards of quality across industries.
28. 27
The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition
entails that our Company's business should refresh the market; enrich the workplace; protect and
preserve the environment; and strengthen the community. We leverage our unique strengths to
actively support and respond to local needs — be it the need for education, health water or nutrition.
We have used our distribution network for disaster relief, our marketing prowess to raise awareness
on issues such as PET recycling, and our presence in communities to improve access to education
and potable water. The Coca-Cola India Foundation is now taking forward in the community at large,
projects and programs of social relevance to carry forward the message of inclusive growth and
development.
2.3 Coca-Cola System Worldwide and in India
At the core of our business in India, as in the rest of the world is our production and distribution
network, which we call the "Coca-Cola system". Globally, the Coca-Cola system includes our
Company and more than 300 bottling partners. The Coca-Cola Company manufactures and sells
concentrate and beverage bases. Our authorized bottlers combine our concentrate or beverage bases
as the case may be with sweetener (depending on the product), water or carbonated water to produce
finished beverages. These finished beverages are packaged in authorized containers bearing our
trademarks — such as cans, refillable glass bottles, non-refillable
PET bottles and tetra packs and are then sold to wholesalers or retailers. In ndia, additionally, the
Company also sells certain powdered beverage mixes such as Vitingo.
Our beverages reach our ultimate consumers through our customers: the grocers, small retailers,
hypermarkets, restaurants, convenience stores and millions of other businesses that are the final
points of distribution in the CocaCola system. What truly defines the Coca-Cola system, and indeed
what makes it unique among businesses, is our ability to create value for our customers and
consumers.
In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company
namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and
powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan CocaCola
Beverages Pvt Ltd; thirteen authorized bottling partners of The CocaCola Company, who are
authorized to prepare, package, sell and distribute beverages under certain specified trademarks of
The Coca-Cola Company; and an extensive distribution system comprising of our customers,
distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to
authorized bottlers who are authorized to use these to produce our portfolio of beverages. These
authorized bottlers independently develop local markets and distribute beverages to grocers, small
retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our
beverages available to consumers across India.
29. 28
2.4 About "Hindustan Coca-Cola Beveraqes Private Limited"
Overview:
HCCBPL is the largest bottling partner of The Coca-Cola Company (www.coca-colacompany.com)
in India. It is a part of The Coca-Cola Company i
s Bottling Investments Group (BIG) and
responsible for the manufacture, package, sale and distribution of beverages under the trademarks of
The Coca-Cola Company.
Coca-Cola India Pvt. Ltd. - (www.coca-colaindia.com) is a Wholly-Owned Subsidiary of The Coca-
Cola Company, USA. While building the consumer franchise for The Coca-Cola Company
trademarks, it also leads world class governance systems for the operations of all partners in bottling,
suppliers, distributors and other stakeholders.
Hindustan Coca-Cola Beveraqes Pvt. Ltd. -As part of the Bottling nvestments Group of The Coca-
Cola Company, HCCBPL has 24 bottling plants at strategic locations in various states spread across
India. We cover approximately 65% of bottling operations for the Coca-Cola System in India.
HCCBPL has an extensive distribution system spanning more than a million outlets operating with
world class execution standards. The focus of the system is to develop strong customer value while
delivering preferred choice of refreshment at an arm's length of desire to the consumer.
30. 29
Over the years, Hindustan Coca-Cola Beverages Pvt. Ltd. has focused on building world class
operations based on principles of safety, profitability and solid governance to claim sustained
growth. As part of our journey of moving towards being a World Class Company, we have
strengthened our organization in terms of Supply Chain, Infrastructure, Market Execution, People,
Processes, Compliance, Governance and Route-to-Market. This approach has enabled us to build our
portfolio through launching new packs and brands, coupled with a competitive pricing strategy based
on a balance of value pricing and eliminating waste.
2.4.1 : Vision Mission and Values of HCCBPL:
33. 32
2.6 Growth and Development:
First Quarter 2020 Highlights:
• Solid 4% first quarter global volume growth. Volume growth of 3% for Coca-Cola Americas and
5% for Coca-Cola International.
• Global sparkling beverage volume grew 3%, led by brand Coca-Cola, up 3%, and global still
beverage volume grew 6% in the first quarter.
• First quarter reported net revenues declined 1%. Excluding the impact of currency and structural
changes, net revenues grew 2% despite two fewer selling days in the quarter.
• First quarter reported operating income declined 4% and comparable currency neutral operating
income grew 5%, in line with our expectations and reflecting the impact of two fewer selling
days in the quarter.
• First quarter reported EPS was $0.39, down 13%, and comparable EPS was $0.46, up 5%,
including a currency headwind of approximately
• The Company announces implementation of a new partnership model in the United States.
ATLANTA, April 16, 2020 — The Coca-Cola Company today reported first quarter 2020 results.
Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said, am pleased
with our first quarter performance results, having once again delivered solid growth against the
backdrop of a still uncertain global economy. Guided by our 2020 Vision, our roadmap for winning
together with our global system bottling partners, we enter 2020 and the fourth year of our journey to
2020 focused and on track to reach our goals.
'Together, we are working to unlock value, to execute with excellence and to keep winning volume
and value share. We proudly serve more than 500 brands through 23 million retail customer outlets
each week, providing consumers a wide array of choices in package sizes, sweeteners and beverages
— including more than 800 low- and no-calorie options. Our focus each and every day is to refresh
the world, inspire moments of optimism and happiness, create value and make a meaningful
difference. I am proud of all we are achieving alongside our customers, bottlers and other partners.
Even so, we remain constructively discontent as we seek to make the most of the vast growth
opportunities we continue to see around the world. "
35. 34
2.7 Performance Hiqhliqhts (Jan 2020):
The Coca-Cola Company reported worldwide volume growth of 4% for the first quarter, with 3%
growth in Coca-Cola Americas and 5% growth in CocaCola International. The Company reported
solid volume growth in key developed markets, including Germany (+3%), North America (+1%)
and Japan (+1%). Europe volume was even for the first quarter and a sequential improvement from
fourth quarter 2012, despite ongoing uncertain macroeconomic conditions and unseasonably cold
weather. The Company also delivered strong volume growth during the quarter in key emerging
markets, including Thailand (+1 8%), India (+8%), Russia (+8%), Mexico (+3%) and Brazil (+3%).
Our China business delivered 1% volume growth in the quarter, a sequential improvement from
fourth quarter 2012, despite the economic slowdown and poor weather in the quarter. Strong volume
growth continued in countries with per capita consumption of Company brands less than 150 eight-
ounce servings per year, with volume up 7% in the quarter overall, reflecting the strength of our
geographic portfolio, with our products sold in more than 200 countries worldwide.
We grew value share in nonalcoholic ready-to-drink (NARTD) beverages for the 23r
dconsecutive
quarter and we maintained global volume share in the quarter. Importantly, value share growth once
again outperformed volume share. Further, our immediate consumption (IC) volume grew 3%
globally in the first quarter, with sparkling IC volume up 2% and still IC volume up 3%, driven by
focused in-store activation efforts and continued cold-drink equipment expansion, building on the 1.3
million units placed in 2012.
Worldwide sparkling beverage volume grew 3% for the quarter. We grew volume and value share in
global core sparkling beverages in the quarter, led once again by brand Coca-Cola, as we activated
our "Crazy for Good" marketing campaign in many markets around the world and continued to offer
consumers relevant price and package size choices as well as promotions centered on "Coke with
Meals". Worldwide brand Coca-Cola volume grew
3% for the quarter, with growth across diverse markets, including Thailand
(+38%), India (+30%), Russia (+15%), China (+6%), Germany (+4%), Japan
(+2%) and Brazil (+2%). In addition, Fanta volume grew 6% and Sprite volume grew 5% for the
quarter, reflecting a balanced portfolio approach to growth across the core sparkling beverage
category. Growth was driven by innovation in sweeteners and packaging and activation of global
marketing campaigns in locally relevant ways such as the Fanta "Play" campaign and the Sprite
"Uncontainable Game" NBA partnership.
Worldwide still beverage volume grew 6% in the quarter, with volume growth across most beverage
categories, including ready-to-drink tea, juices and juice drinks, packaged water, energy drinks and
sports drinks. Excluding the impact of acquired volume, primarily from the Aujan partnership in the
Eurasia and Africa Group, still beverage volume grew 4% in the quarter. We grew global volume and
value share in still beverages and realized volume and value share gains in juices and juice drinks,
ready-to-drink tea, and packaged water.
Ready-to-drink tea volume grew double digits in the quarter, with continued strong performance of
key brands such as Gold Peak and Honest Tea in North America, Ayataka green tea in Japan and
Fuze Tea, which we expanded across multiple markets worldwide during the quarter. Juices and juice
36. 35
drinks volume grew 9% in the quarter, with growth across all of our geographic operating groups as
we continue to introduce a common visual identity across our portfolio of juice brands around the
world. Energy drinks volume also grew 9% in the quarter. Packaged water volume grew 1% in the
quarter, as we strengthened our focus on innovative and sustainable immediate consumption
packaging to grow value in the category.
Our two newest billion-dollar brands, I LOHAS single-serve water and Ayataka premium green tea,
both in Japan, grew 22% and 13%, respectively, in the quarter, as we build on our strong history of
brand innovation to capture growth opportunities across beverage categories and occasions in this
important market. The Company now has 16 billion-dollar brands.
2.8 Product Profile
Different brands of company:
The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit
juices and bottled mineral water. The Company is always looking to innovate and come up with,
either complete new products or new ways to bottle or pack the existing drinks. The Coca-Cola
Company has a wide range of products out of which the following products are marketed by
HCCBPL:
ProductName Image
Coke
Diet Coke
Thums Up
38. 37
Maaza
Minute Maid
Minute Maid Juices
Burn Energy Drink
Schweppes (Tonic Soda
and Tonic
Water)
Georgia (Tea and
Coffee Beverage)
GEÖRGIA
39. 38
2.9 Departmental Overview
MANUFACTURING UNIT OF HCCBPL
The industry has established it soft drink manufacturing and bottling plant at
Goblej, Dist. Kheda in Gujarat, India. An Effluent Treatment Plant involving Activated Sludge
process is designed and commissioned by CA to treat 1200 cu.m/day of effluent with inlet COD
3000 mg/L. The total cost of the project was in Millions and the plant was successfully
commissioned in 1998 with treated effluent COD — 100 mg/L. The industry has appointed CA as
their consultants to operate and maintain the above mentioned treatment.
Kinley Soda
Kinley Drinking Water
42. 41
The manufacturing of the products of Coca-Cola involves the following steps:
• Water is received from the River Cauvery and it passes through the water treatment plant, further
passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.
• In the syrup room, the concentrate received from another bottling plant is blended with the sugar
syrup.
• Once both the water and the final syrup are ready, they are both mixed together and sent to the
carbonator section where Carbon Dioxide is added to the mixture to form the final product.
• On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and
washed for the purpose of filling in the final
• product in it. This step does not take place in the PET bottle line as the bottles once used are
disposed
• The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET
bottles), labeled and cased in order to be sent into the warehouse for distribution
43. 42
Business Plan Model at HCCBPL:
Customers
Consumers
Fig: Business Plan Model
DISTRUBUTION PROCESS OVERVIEW:
Distribution of coca cola is done basically in two ways:-
a) Direct operation.
b) Indirect operation.
But the distribution of Coca Cola varies from place to place. In India Coca Cola is doing his
distribution by direct operation, indirect operation & by both also. Especially in Rajkot Coca-Cola is
doing its distribution by both direct operation & indirect operation.
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 they need it. A typical distribution chain at HCCBPL would be: Production -¥ Plant
Warehouse Depot Warehouse -¥ Distribution
44. 43
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(PJP), 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.
DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY
Coca-cola Company distributes their schemes according to area. Area or place where soft drinks sold
in a large manner, on those place company gives good schemes to shopkeeper and retailer. Place like
railway station bus stand are consider in this category and place which have low selling where
company gives small schemes to the shopkeeper.
Direct Operation:
Here company does its distribution by himself. There is no role of middle man. Every activities of a
distribution process is under the control of the company. Here coca cola runs its own vehicles in that
particular area for the distribution.
By direct operation company gains a lot. The direct operation of the coca cola is as follows:-
COMPANY
COMPANY
DSO
RETAILERS CONSUMERS
In 2006 there were only 14 towns under DSD which has been increased to more than 50 towns by
2012.
Indirect Operation :
Here in the distribution process middleman's role came into existence. In coca cola the distributor is
the middle man. Everything is not under the control of the company. Basically Coca Cola Company
selects a person for some specific areas for the distribution process.
ndirect operation of coca cola in Rajkot is as follows:-
COMPANY
45. 44
COMPANY
DEPOT
DISTRIBUTOR
RETAILER
CONSUMER
MARKETING OVERVIEW
Marketing Objectives
The ultimate objectives of our business strategy are:
• To increase volume.
• Expand our share of worldwide nonalcoholic ready to drink beverages sale.
• Maximize our long-term cash flows.
The Coca Cola system has more than 16 million customers around the world that sells or serves our
products directly to consumers. We keenly focus on enhancing value for these customers and helping
them grow their beverage businesses. We strive to understand each customer's business and needs,
whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging
market.
46. 45
Target Market
Coke's commercials basically based on young generations, So, the young generation is the target
market of Coke because they want to represent Coke with the youth and energy but they also
consider about the old people they take then as a co-target market.
Major Segments
Major segments are basically those people who take this drink daily and those areas where the
demand is higher than the other areas. There are so many people who take this drink daily and those
people who take weekly and those who take less often are always there as well. So, their basic
segments are those people who take this drink regularly.
FOUR P's OF BUSINESS MARKETING
Price, Promotion, Product, and Place
a) Product:
Businesses must think about products on three different levels, which are the core products, the
actual product and the augmented product. The core product is what the consumer is actually buying
and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual
product is the parts and features, which deliver the core product. Consumers will buy the coke
product because of the high standards and high quality of the Coca Cola products. The augmented
product is the extra consumer benefits and services provided to customers. Since soft drinks are a
consumable good, the augmented level is very limited.
b) Promotion
Over the time Coca-Cola has spent millions of dollars developing and promoting their brand name,
resulting in worldwide recognition. 'Coca-Cola' is the most recognized trademark, recognized by
94% of the world's population and is the most widely recognized word after "OK". Coca Cola's red
and white colors and special writing are all examples of world-wide trademarks.
47. 46
There are a number of branding strategies:
➢ Generic.brand.straegy
➢ Individual.brand.stra
egy
➢ Family brand strategy
➢ Manufacturer's brand
strategy
➢ Pnvate brand strategy
➢ Hybrid brand strategy
Coca Cola utilizes the Individual brand strategy as Coca Cola's major products are given their own
brand names e.g. Fanta, Sprite, Coca Cola etc although they may be presented as different lines they
operate under the name of Coca Cola.
c) Place:
The Coca Cola Company has always focused wide scale distribution. This is the reason, 94% of the
world's population knows about Coke. "Coca Cola" is the most recognized word after OK.
Coca Cola sets its own distributions directly to stores. Stores include a wide variety of Supermarket,
Marts, Convenience Stores, Retail Stores and Departmental Stores. The channel distribution of Coca
Cola Intl is extremely large.
Over time, they have produced many products and thus have increased number of warehouses for
specific products.
Coca Cola Intl has also improved services via setting up a national service network.
48. 47
d) Price
Since Coca-Cola faces a major threat from its competitor Pepsi Co., so naturally the Pricing is done
keeping in view the increasing rivalry with Pepsi Pricing is basically standard for all over the world.
2.10 SWOT ANALYSIS
SWOT analysis is a basic, straightfoward model that provides direction and serves as a basis for the
development of marketing plans. t accomplishes this by assessing an organizations Strength (what an
organization can do) and Weakness (what an organization cannot do) in addition to Opportunities
(potential favorable conditions for an organization) and Threats (potential unfavorable condition for
an organization).
SWOT analysis is an important step in planning and its value is often underestimated despite the
simplicity in creation. The role of SWOT analysis is to take the information from the surrounding
and separate it from internal issues (strength and weaknesses) and external issues (opportunities and
threats). SWOT analysis assists the firm in accomplishing its objectives
(strength or opportunity) and overcoming the obstacles (weakness or threats).
49. 48
STRENGTHS:
1. Better network — covers whole of the city.
2. Brand recognition — brand image among customers
3. Brand equity — high equity in the market.
4. Advertisement policy — Coca Cola Company has endorsed with famous celebrities like
Aamir Khan, Hrithik Roshan, Akshya Kumar, Priyanka Chopra, Kareena Kapoor and
many more.
5. Bottling plants —27 wholly-owned bottling operations Supplemented by 17 franchisee-
owned bottling operations and a Network of 29 contract-packers to manufacture a range
of products for the company.
6. Promotional schemes — to activate sales company is providing Umbrellas, Chairs,
Tables, Racks, Flanges, Visicoolers & Glasses.
WEAKNESSES:
1. Weak and irregular supply.
2. Irregular visit of EXECUTIVES.
3. Low product availability.
4. Scarcity of manpower.
OPPORTUNITIES:
1. Greater opportunity in rural areas where Coca-cola can gain a substantial base.
2. 70% of total population lies in rural area, and market penetration of soft Drink is only
12% hence there is greater scope of increasing revenue of the Coca-Cola Company.
3. Opening new outlets in the area where the coca cola's market share is
less.
4. Company should offer schemes for long term profit to the retailer so that they get
involved in long term association.
5. Covering greater institutional areas as younger generation gets much
Fascination out of such beverages.
50. 49
THREATS:
1. Impulse customer's buy whatever is in the offer, so company should
2. Give offers regularly.
3. Health conscious people are boycotting soft drinks.
4. Threat from Competitors as they give offers at cheaper rates than coca-col a.
5. t's too seasonal.
6. People are becoming health conscious.
2.11 ABOUT COMPETITORS
The major competition faced
by Coca-Cola International is
PepsiCo Inc. PepsiCo is a
world leader in convenient
foods and beverages, with
revenues of more than $66
billion and over 297,000
employees. The company
consists of the snack
businesses of Frito-Lay North
America and Frito-Lay
nternational; the beverage
businesses of Pepsi-Cola North
America, Gatorade/Tropicana
North America and PepsiCo
Beverages International, and
Quaker Foods North America,
manufacturer and marketer of
ready-to-eat cereals and other
food products. PepsiCo brands
are available in nearly 200
countries and territories
51. 50
Major PepsiCo. products include.
• Pepsi
• Teem
• Mirinda
• Pepsi Max
• Pepsi Lemon
• Pepsi Blue
• Mountain Dew
• 7up
HCCBPL is also facing considerable amount of competition by local companies and by local
fountain beverages especially in Rajkot. Some market segment is much conscious about price as
well, so rather being brand loyal they would prefer local drinks which they can get at cheaper
53. 52
3.1: BACKGROUND OF THE STUDY
Sales and distribution is an integral part of marketing. Here, Coca-Cola the leading brand in soft
drinks worldwide. Coca-cola has maintained its brand image with high precision. The marketing
strategy of Coca-cola products is very stringent than others. The main features in their marketing are
their offerings and its sales and distribution It's my gratitude to work with Hindustan Coca-Cola
Beverages Pvt. Ltd. especially in marketing department. I have been placed their in sales and
distribution department for my internship. The research work was not as easy as HCCBPL is very
strict in their marketing policy. In the beginning the main reason for conducting this study was to
know the proper allocation of distribution to the suppliers and also to know about the products sales.
Further, it is to understand the availability of the product and to check out that there is the proper
advertising of the product and also to know the working condition of the visi-cooler provided by the
company. Also to know the various schemes provided by the HCCBL is really applied in the market
or not and to compare the schemes with Pepsi products and others. The study is done to understand
the problem of the retailers, to understand the presale concept and to increase the current selling of
products.
54. 53
3.2: STATEMENTS OF THE PROBLEMS
Main reasons behind doing different kind of campaigns for sales promotion was to solve some
problems and to promote the current selling. HCCBPL was facing some of the problems as stated
bellow
1.Why some products of Coca-cola are not performing well in Rajkot especially 200ml
Coke?
2.Why numbers of retail outlets are decreasing from the existing one?
3.Why overcharging above MRP is being takes place by retailers in market??
4.Why retailers are not satisfied with the profit margin given to them?
3.3OBJECTIVES OF STUDY
Primary objective:
• To find the role of marketing campaigns in sales promotion
• To increase current selling by consumer awareness and creating totally new outlets in the
market.
Secondary Objectives:
• To analyze the distribution channel system.
• To check the brand availability.
• To analyze the effectiveness of the schemes launched by the company.
• To find the retailer's satisfaction.
55. 54
• To give valued suggestion to the company.
Campaigns undertaken to solve the problems
As HCCPBL was facing so many problems stated above, it became vital for them to solve these
problems by doing some of the marketing campaigns. By keeping nature of the problems in mind,
HCCBPL has designed some marketing campaigns as bellow.
1. Shop in Shop Activity
To solve following problems:
• Why some products of Coca-cola are not performing well in Rajkot
especially 200ml Coke?
• Why overcharging above MRP is being takes place by retailers in market??
2. Horizontal Expansion
To solve following problems:
• Why numbers of retail outlets are decreasing from the existing
• Why retailers are not satisfied with the profit margin given to th em ?
57. 56
4.1 : INTRODUCTION
The topic "Study on Role of Marketing Campaigns in Sales Promotion" for the project work was
suggested to me by the MOE (Market Operation Executive) of Hindustan Coca-Cola Beverage
private limited, Rajkot. He asked me to conduct a study in areas where the coca-cola market is weak
as well as high and to make a study of problems arising in sales promotion.
Armed with the ideas provided to me by the MOE and the Area Sales Manager, I went ahead for the
research with the help of marketing campaigns designed by them. While working on the campaigns I
was responsible myself to collect necessary information from the market which can be helpful in my
study. In my research, the retailers in Rajkot comprise the universe. Therefore, they are the ones who
constitute as the main source of information to me. I also needed to be in contact with Market
Developers for that particular area in order get sufficient information about particular outlets.
4.2 RESEARCH DESIGN
The design appropriate for this study is Experimental Research Design Experimental research
studies are also termed as Conclusive research studies. The main purpose of such studies is to
observe the current situation and comparing it with situation after doing Experiment.
n marketing campaign called "Shop in Shop Activity", I was analyzing sales figures before the
activity is done and after the activity is done at particular outlet. In another campaign called
"Horizontal Expansion" I was measuring the increase in sales after completion of some portion of
this campaign and total increase in sales after fully completion of this marketing activity.
The study during these campaigns was conducted in RAJKOT by asking retailers and market
developers (MDs) of particular areas in which campaigns are going on.
4.3 SCOPE OF THE STUDY
1. By this study company can know its growth.
2. This study helps the company to know their actual position in the market.
3. This study also helps to get a clear idea about where the company is lagging behind &
where it is ahead of its competitors.
4.4 DATA COLLECTION
The data can be dichotomized into two types: primary data and secondary data. In this study the data
collected was mainly primary data. The respondents were from the area of Rajkot only. The
secondary data were obtained from the HCCBPL city office. The information collected for the
various objectives were from the total number of outlets covered by me under those campaigns.
58. 57
Method of data collection
There are different methods of data collection. They are observation, experimentation,
uncontrolled experimentation, controlled experimentation, survey and focus group.
Here the data are collected by market survey and experiments.
Market survey and Experiments
Market survey is one of the most widely used MR (Market Research) techniques. It is
at times viewed as synonymous with marketing research This is erroneous. It has to be
understood clearly that market survey is just one of the techniques of MR and is not
synonymous with MR. It is just one of the methods of collecting marketing
information required for a given marketing assignment. It is used when the required
data is not available with the company's internal records, as well as external published
source. Here the researcher carries out opinion pools involving sales persons, dealers,
traders and experts. Trade surveys are very common. In conducting these surveys, the
researcher has to carefully select the instrument and methods of surveying.
4.5 INSTRUMENT FOR DATA COLLECTION
The primary data collected through the survey method for the purpose of the study. The survey was
done by doing Experiments with help of marketing campaigns. Beside this I had an informal
discussion with the retail outlets. Secondary data: information regarding the organization was
obtained from secondary sources like company journals, company websites, publications & records.
How Campaigns helped in collecting Data?
Basically these two campaigns called "Shop in Shop Activity" and
"Horizontal Expansion" were designed by MOE of HCCBPL to deal with the problem statements
mentioned earlier. My study was totally depends on external market so I had to do some
experiments through which I can come in to direct touch with market. These two campaigns have
shown their potentials to solve all problems that HCCBPL was facing.
These campaigns have helped me to explore myself in market and also helped me to collect
important information from retail outlets and some other outlets dealing with competitofls
products as well. I have enough of information with me through these activities and with the help
of sales and distribution staff of HCCBPL at Rajkot.
59. 58
Literature Review:
• My Research was totally based on Market Experiments to solve problems of HCCBPL. So, As a
part of my Research Work , I had to gain knowledge of different marketing experiments done by
HCCBPL in Past, especially in Rajkot.
• I surveyed literatures provided by my company guide on different Marketing Campaigns
conducted in past by HCCBPL in Rajkot. Some problems were there in design and execution of
those campaigns so we had to design new campaigns to solve some market problems
HCCBPL was facing.
61. 60
What is Marketing Campaign?
Marketing Campaigns are specific activities designed to promote a product, service or business. A
marketing campaign is a coordinated series of steps that can include promotion of a product through
different mediums (television, radio, print, online) using a variety of different types of
advertisements. The campaign doesn't have to rely solely on advertising, and can also include
demonstrations, word of mouth and other interactive techniques.
Gist of Marketing Campaign
A marketing campaign isn't something that comes to you while you're taking a shower. Successful
campaigns tend to be carefully researched, well thoughtout and focused on details and execution,
rather than resting on a single, grand idea. Planning a marketing campaign starts with understanding
your position in the marketplace and ends with details such as the wording of an advertisement.
Keep in mind that your plan for a marketing campaign is not supposed to be a prison. You have to
leave room to make changes as you go along because no plan can perfectly capture reality. But you
should also be able to commit fully to implementing your plan or some future version of it if you
want to take a strong step toward growth.
Need of Marketing Campaign
Nowadays it became very difficult to sustain market share and market growth of the company even
for market leaders so without doing any promotional activities one may not survive in this
competitive market.
Marketing campaigns helps in promoting your products and making customers aware about your
products. t also helps you to create brand image of your products and so as of your company also.
Hence marketing campaigns has a vital role in sales promotion of products in competition.
Different ways to launch Marketing Campaign
Here are some ways to launch your campaign
• Speak at community events: Offering your expertise at public occasions is an easy way to get
the word out about your business. You'll maximize your impact and lend credibility to your
product or setvice.
• Ask customers for referrals: Generating referrals from current customers is one of the best
ways to market your business. Don't forget to query your vendors (they're likely to have many
62. 61
contacts) and explain to your customers exactly what kinds of referrals you're looking for and
how they can help.
• Spend two days in your customers' shoes: To find out what your customers really want, visit a
wide range of businesses they're likely to frequent. Observe how customers are treated, as
well as the kinds of setvices that appear important to them; then adapt your business
accordingly.
• Offer free samples: If you can get someone to try your product or setvice, chances are they'll
buy it later. Have employees pass out product samples in front of your business; if you
provide a setvice, offer free services on a trial basis.
Campaigns undergone for study purpose
Followings are the campaigns that I underwent during my SIP project and through which I have
collected some important information for my study.
1. Shop-ln-Shop Activity
2. Horizontal Expansion
5.1 : Campaiqn 1: "Shop in Shop Activity"
5.1.1 : What is Shop-ln-Shop?
This campaign is been named as a "Shop-ln-Shop Activity" because in this campaign we were doing
retail selling of 200ml coke at its MRP (i.e. Rs. 8) in premises of selected outlets with prior
permission of their owners. We were having our separate stall with enough communication banners
to deal with consumers and were simultaneously doing same activity at different outlets in different
areas in a group of two.
63. 62
5.1.2: Aim of Shop-In-Shop Activity
Main aim of this activity was to spread price awareness among our customers and telling them, not to
pay over its MRP (i.e. Rs- 8). During this activity we came in a contact with thousand of consumers
and tried to convince them to fulfill main aims of this activity.
64. 63
5.1.3: Need of Shop-ln-Shop Activity:
This activity was needed not only for promoting 200 ml Coke but also was needed to make
consumers aware about actual MRP of 200 ml Coke.
Some retailers were charging more price than the MRP of 200 ml coke (i.e. Rs. 8) which makes
customers to switch on some other company's products or to local fountain beverages.
it was very necessary to spread awareness among customers and that was only possible through this
type of activity
Why to promote 200ml Coke only through this campaign?
it was a subjective decision of HCCBPL to promote only 200ml Coke through this activity because
Coke is an oldest formula of Coca-cola and it is having high market in other countries with compared
to India.
Other products of Coca-cola are performing well in Rajkot although they all are having more MRPs
than Coke so it was in need to promote 200ml Coke to increase sales of Coke and to compete with
Pepsi
5.1.4: How we executed Shop-In-Shop Activity?
This was the challenge for HCCBPL to successfully complete this activity. We all interns were ready
to work on this campaign so we all assigned under the guidance of MOE and we were responsible for
daily reporting for our work to our company guide.
We all were given basic ideas about this activity and we had to work accordingly. Generally we were
working in a group of two throughout this activity and all groups had been assigned to different
outlets in different areas of Rajkot to perform the same activity.
it was a role of Market Developers (MDs) who were working under STLs to convince outlet owners
for performing this activity in their premises for given days. t was very difficult for MDs to convince
outlet owners who were overcharging for Coca-cola products as we were going to sale at its MRP but
still somehow they managed it and convinced them for this campaign. t was pre-decided for us to
sale 200ml Coke from the stock of outlet only and profit would be of outlet owners.
How we were working during this Campaign?
We were about 5-6 groups with all equipments (i.e. Umbrella, Table-Chair, Ice-Box, Counter-top,
Different Communication Banners, etc.) given to us. We all were working simultaneously at different
outlets in different areas. This activity should be performed minimum for two day at single outlet. It
can be done for more than two days depending upon footfall of that outlet.
65. 64
We need to set our stall in such a way that people who passing from, could see it easily. We had to
manage for ice daily to keep bottles cool in Ice-box. Payments for ice would be given by company so
outlet owners didn't need to spend for ice.
We need to convince people who come to that outlet to have coke or the people who passing nearby.
We were also responsible for giving answers for the doubts of consumers and to aware them about
price and product. We were keeping record of sales and people visiting per hour. At the end of the
day we were summing up all figures to analyze per day selling. We always need to be at our stall for
customers during the time of activity and it was a time of summer so peak time of a day would be
more crucial to sale as many Coke as possible.
People would attract by communication banners and table-top which were having tag of "200 ml
Coke only at Rs. 8". We were having our pen and papers with us to keep daily Sales Record and to
note some questions asked by peoples and suggestions given by them.
Through this campaign, HCCBPL became successful to expand the market for "Coke 4
', and also
helped their customers to be aware about price.
it was a major question for HCCBPL that after doing this campaign, whether outlets will be agreed
for not to overcharge and to sale product at its MRP on ly_
5.1 .5: Major Challenges faced to successfully complete this Campaign
1. As our main goal was to convince our retailers to sale our products at its MRP only not
more than that so it was very difficult to convince all the retailers because they were not
satisfied with the profit margin given to them by HCCBPL and that's why they were
charging more to earn more.
So this was a challenge for us to make our retailers agree with company policies but at
the end we convinced them with our marketing skills and by simply telling them "Higher
the Price lower the Demand and Lower the Price higher the Demand" and we also
proved this.
2. It was again a challenge for us to give answers of some difficult questions asked by retail
customers but we have managed it with our deep knowledge about company's policies
and their practices.
3. We were responsible to convince some people who have not tried Coke to taste it once
and also telling them how our product is good then Pepsi product.
How Shop-ln-Shop Activity helped me to do my study?
Before starting this campaign, we have surveyed market with the help of MDs assigned under
different distributor's area. We analyzed whole market and current selling of particular product in
particular area. So this information has become prior observation before doing this campaign
66. 65
Now all we needed to do was to perform this campaign and to make it successful. We were keen to
know that what will the effects of this campaign in the market later, whether it will help HCCBPL to
expand its market or noP.
And finally we were very happy to conclude this campaign because it has helped HCCBPL a lot to
fulfill all their objectives behind this activity.
Market was far better than preview situation now after undergoing Shop-lnShop Activity in selected
areas of Rajkot.
Sr.
No.
Date
(2020)
Outlet
Name
Address
(Rajkot)
Average
Footfall
per Day
Average Sale per Day (No.
of Bottles Increase in
Sales
(in 96)
Before
S-I-S
Activit
During
S-I-S
Activit
After S-
I-S
Activit
5th
April
Vishal Pan
Limda
Chowk
146
6-7
bottles
33
bottles
11-12
bottles
83-84%
2
6 to9th
April
Momai
Cold-
Drinks
Bhaktinagar
Circle
212
16-17
bottles
79
bottles
26-27
bottles
62-63 %
3
and11April
Balaji Belt
Bog ha ni
Street, Soni
Bazar
169
12-13
bottles
62
bottles
17-18
bottles
41-42 %
4
12th
and
13thApril
Babul Pan and
Coldrinks
Near Keshari
Bridge,
Naklank
Chowk
126
5-6
bottles
42
bottles
9-10
bottles
80-81 %
5
15 to 17th
April
Bajarang
Pan and Tea
Yagnik Road 204
15-16
bottles
57
bottles
19-20
bottles
26-27 %
6
and 19
April
Sakti Pan
Popat Para
main road
93
4-5
bottles
39
bottles
8-9
bottles
100%
7
20and22nd
April Patel Pan
Sadhu
Vaswani Road
120
6-7
bottles
38
bottles
10-11
bottles
66-67 %
E to 25t
h
April
m andir
Cold-
Drinks Vaswani Road
132
8-9
bottles
44
bottles
14-15
bottles
75-76 %
9 and 27th
April
Priya Pan
Kishan
Para
Chowk
247
12-13
bottles
42
bottles
15-16 25-26 %
29April
to1st
May
Viddhi
Ice-Cream
Kalavad
Road, Opp.
Atmiya
193
13-14
bottles
53
bottles
18-19
bottles
38-39 %
4May
Coldrinks& Kotecha
Chowk
172 17-18 77 25-26 47-48%
67. 66
5.1 .6.• Data Analysis and Interpretation of Shop-In-Shop Activity:
Table: Worksheet of Shop-ln-Shop Activity
Above table shows the analysis and interpretation of the data collected by me during this activity. It
shows average selling per day before, during and after Shop-ln-Shop Activity. This table helps us to
know effectiveness of this campaign outlet wise and it also shows increase in the average selling of
200ml Coke at particular outlet.
Mainly I covered 1 1 outlets during this campaign to do retail selling of 200ml Coke and I kept
record of average footfall per day and average selling ( n bottles) per day as shown in table. Last
column shows percentage increase in sales at that particular outlet.
How I found average selling per day, before and after?
Before starting "Shop-In-Shop Activity" at any outlet, I was getting information about per day selling
from outlet owners and with the help of Market Developers (MDs) of that area. Through this I got
idea about per day selling of that outlet before this campaign
I was also keeping record of per day selling during this activity so that I can measure the
effectiveness of Shop-ln-Shop.
Main challenge was to measure increase in sales at particular outlet after completion of this
campaign at that outlet. For this, I was visiting those outlets daily for next 10 days at which we
performed this activity and was asking them about increase in sales of 200ml Coke due to this
campaign. So, this how, I collected data about increase in sales at particular outlet.
Table Shows
• Shop-ln-Shop Activity has positive result as it has helped HCCBPL to fulfill desired aims and
helped to solve problems.
• Total Avg. Increase in sales of these 1 1 outlets was about 58% to 60% and I sold total 1554
bottles (i.e. -65 CS) of 200ml Coke at the end of this activity.
• Total number of retail customers I came in touch with during this entire activity were near about
4899 (Customers might got repeated), so most
of them got awareness about product price and service we provided to them.
• Average selling of all these 11 outlets was 10-11 bottles per day before S-I-S activity. It was 51-
52 bottles per day during S-I-S activity and increased to 16-17 bottles per day after S-I-S activity.
creams bottles bottles bottles
Total/
Av
4899
10-11
Btl/da
1554
65 CS
16-17
Btl/da
58 -60
68. 67
5.1.7 Result and Finding
Chart 1 :
Increase in sale(outlet wise)
OL-I OL-2 OL-3 01-4 OL-s OL-6 OL-7 01-8 OL-9 01-10 01-11Before S-I-S Activity • After S-I-S Activity
3
0
2
5
20
70. 69
Chart: 1- Avg. bottle sold per day before and after S-I-S Activity at each outlet
Above bar chart demonstrates the data available in previous table. Chart includes all outlets that I
covered during shop-in-shop activity.
n char-I, Bars in front show average bottle sold per day before S-I-S activity at particular outlet and
bars at backside show average bottle sold per day after S-I-S activity at particular outlet.
Chart 2:
Total Avg. Selling Per day
60
so
40
30
20
10
Before s-l-sDuring s-l-s After S- -S
Chart: 2-Total avg. selling per day before, during and after S-I-S Activity
Chart-2 shows total average selling of 200ml Coke of all 11 outlets per day before,
during and after Shop-ln-Shop Activity.
Before S-I-S, Avg. selling was 10.5 bottles per day of all outlets and during this
activity, average selling was much higher, i.e. 51.5 bottles a day and due
to this activity total average selling increased to 16.5 bottles a day.
71. 70
5.1.8: CONCLUSION OF SHOP-IN-SHOP ACTIVITY:
All above charts and table shows that "Shop-ln-Shop Activity" has helped
HCCBPL to increase average selling of 200ml Coke in given areas of Rajkot. It has got the growth of
58% to 60% in selling of Coke at those 1 1 outlets.
This activity has proved its role in sales promotion of Coca-cola product and spread awareness
among thousands of people about Price and Product. It was executed effectively to achieve desired
results and HCCBPL has got that.
5.2: Campaiqn 2: "Horizontal Expansion"
5.2.1 : What is "Horizontal Expansion" in General meaning?
t is an expansion of business capacity through the absorption of facilities or buildings as well as
through the acquisition of new equipment to handle an increased volume in sales in which the
business is already engaged. n microeconomics and strategic management, the term Horizontal
Expansion describes a type of ownership and control. It is a strategy used by a business or
corporation that seeks to sell a type of product in numerous markets. Horizontal Expansion in
marketing is much more common than Vertical Expansion is in production. Horizontal Expansion
occurs when a firm is being taken over by, or merged with, another firm which is in the same
industry and in the same stage of production as the merged firm, e.g. Pepsi has adopted strategy of
Vertical Expansion by which Pepsi wants to improve its sale from Coke monopoly outlets, means
Coke's monopoly outlets are being taken over by Pepsi now in this condition to improve its sale
Coca-cola needs to open new outlets which is called Horizontal Expansion Strategy. A monopoly
created through Horizontal Expansion is called a Horizontal Monopoly.
5.22: Need of Horizontal Expansion
The ultimate objective of Coca-cola is to acquire more customers and serve them properly. While
doing Horizontal Expansion take care to the competitor's strategy. The main competitor is PEPSI,
who has opted Vertical Expansion to generate more sell however Coca-cola does not believe on
Vertical Expansion because Vertical Expansion has limited preview so Coca-cola is great believer in
Horizontal Expansion and this strategy helped to the company to maintain its leadership in the soft
drink industry. India is a big country having diversified taste and appearance and same character is
reflected in their demography. Horizontal Expansion helps the company to serve more people and
more customers touch points.
Main reason behind doing Horizontal Expansion was to sustain against the competitors' strategies. It
was very necessary for HCCBPL to keep their growth high and for that this kind of market expansion
campaign was needed.
72. 71
5.2.3: How we performed "Horizontal Expansion"?
This campaign was all about "Creating new outlets" for selling of Coca-cola products. Horizontal
Expansion is one of the most effective market expansion strategy used by well reputed companies in
the world. Making expansion in same business or for same product can be referred as a Horizontal
Expansion.
We were working in a group of 2 people and we had such 4 groups in our team to perform this
campaign of Horizontal Expansion. We all had been provided enough materials (such as Product
Samples, Price List of Products, NC kits, NC forms, etc.) and information needed to do this activity.
We were working in clusters to perform "HE" in some main areas of Rajkot, such as
We used to have get meetings with MOE (Our company guide) and STL to design our day to day
activity. Our guide decides which group will cover which area and we had to work accordingly.
Different group would be covering different areas. We were responsible for reporting our day to day
work to him.
To convince new outlets we had to tell them all benefits will be given to them by coca-cola if they
agree to sell our products. We were also responsible for doing commitment to provide visi-cooler if
required and to collect necessary documents from them for further processing.
Targeted Outlets
Basically we were targeting outlets like:
E&Ds (Eating & Drinking), Grocery Shops, Dairy farms and Medicals (for
Kinley Water).
Reason behind targeting all above outlets was mainly to attract ladies customers to
purchase Coca-cola products especially available in PET. Usually they don't visit PAN
shops to purchase PET bottles.
1. Maydi
2. Bajarang vadi
3. Atika
4. Sadhuvasvani Road
5. University Road
6. Kalavad Road
73. 72
We were also targeting outlets having Pepsi products to convert them in to Coca-cola
outlets.
We were targeting Medical stores for Kinley water available in 500ml as well as in l
ltr.
Above, in the picture is one of the outlets we convinced for Horizontal Expansion. You can see the
display of Coca-cola products as per the company norms. We were responsible to inform distributors
to dispatch products at newly convinced outlets as per the order generated by them. And we would be
making display of products in convenience to outlet space.
74. 73
5.2.4: How we convinced for new outlets?
To do Horizontal Expansion more efficiently we made a profit story and talked to the shopkeepers
according to that story.
Salesperson — Hello sir, I am from Coca-cola and I have a proposal that will surely increase your
income. May I present you?
Shopkeeper — Yes, you can present it.
Salesperson — Thank you Sir, if you will start to sell our products then your overall sale will be
increased and it is not tough to sell our products because
Coca-cola is the leader in beverage industry and a very well known brand.
Shopkeeper- Okay I know that, but how it will increase my overall sale?
Salesperson - Sir, you are selling Chips, Pastries, Snacks and kind of things. So these products have a
very good combination with cold drinks. If a person wants to purchase any of these products then it
is quite possible that he/she will purchase Coca-cola products and vice versa.
Shopkeeper- May be but I have to put your products in the cooler to chill and without cooler, I think
it's impossible for me to sale your products
Salesperson- Sir you are right but see, in starting, I want you to keep PET bottles only. People can't
consume whole bottle at a time and they would purchase to bring it home and will keep there in
fridge. And we will also provide you cooler once you start selling our products but it has legal
processor through which we need to pass which will take around 25 days to dispatch your cooler. So
you can start with small order also.
Shopkeeper- Okay but what is overall profit margin and do you provide any extra schemes?
Salesperson- Yes sir, we currently have market schemes on purchase of whole case. We are giving 2
free bottles of 1 ltr kinley water on case of any of our products (600ml, 1 .251tr, 2,251tr). We provide
1 free bottle of 400ml on purchase of 400ml case. On purchase of kinley soda, we provide 2 bottles
free of the same. For mazza tetra packs, we are giving 3 pieces free on purchase of 1 case.
Including this schemes, your total profit margin will be around 12-13 0/0, which is not bad.
Shopkeeper — Okay and how much profit can I earn through your products?
Salesperson — Sir if you are really interested to explore through our products, you may be able to
sell 1 case of 400ml, 1 case of 600ml, 1 case of 1 .251tr and 1 case of 2.251tr in mix. And to start
selling our products you need to invest near about 2281 Rs.
75. 74
We will also provide you free NC kit as compulsory given by Coca-cola and
Communication banners or rack to hold our products if you want.
Consider following table (for non-coke products only with scheme):
Weight of
products
Rate per
case(Rs.)
Qty MRP (Rs.) Revenue Profit (Rs.)
400ml 522 free 23 575 53
600ml 677 24+ 2 K.W. 30 760 83
1.251tr 496 12+ 2 K.W. 45 580 84
2.251tr 586 70 670 84
Total 2281 304
Sir if you order same, 8 times in a month (Even in Peak season)
Profit per month will be (in Peak season) = Rs. 2432
Profit of whole peak season = Rs. 9728
(Consider peak season of our products is only of 4 months)
Profit of rest of the 8 months (Per month: Rs. 1824) = Rs. 14592
(Because as per assumption that in OFF season our income becomes 2/3 with compare to the peak
season)
Profit of whole year = Rs. 24,320
Your investment = Rs. 2281
Your ROI 24,320 * 100/2281
= 1066.199%
Shopkeeper - But I do not think this much will work what about electricity bill that I need to bear to
keep your products cool?
Salesperson- Nice question sir but let me tell you. If you are keeping our cooler ON for whole day, it
will consume power as low as 2 units per day
Which, we can't compare with your rate of return
76. 75
So, what you have to say about our offer?
Shopkeeper - Yes, I think it will be a profitable deal to accept your offer.
Salesperson - Thank you sir and Congratulation (Shaking Hands). Your order will be dispatched
within 2 days as our salesman will have this route.
On some big outlets we had to offer coolers and for that we were in need to collect 1 photo copy of
Driving license, 1 photo copy of electricity bill and 1 passport size photo of shopkeeper.
5.2.5: RESULT AND FINDINGS (Outcome of Horizontal Expansion)
Apart from the other benefits of horizontal expansion, its main benefit is to generate incremental
revenue for the company. During the project I studied strategies and analyzed the market. My major
job was to use different tools provided by the company for horizontal expansion like visi-coolers, ice
box etc. to open outlets for coca-cola products. With my other team mates I targeted the market of
Rajkot and our outcome was as follows:
No. of New outlets in 150ft Road=12
No. of New outlets in Mavdi Chowk area-11
No. of New outlets in Sadhuvasvani Road = 8
No. of New outlets in Bajarang wadi area- 6
No. of New outlets in Atika area= 5
No. of New outlets in other areas= 13
Total new outlets created during "HE": 55
Note: see annexure for the list of outlets)
Revenue qenerated throuqh Horizontal Expansion for the company
Average order at each outlet = 3 cases per outlet
Total Sales = 55*3 = 165 cases
Avg. price per case -Rs. 570 (approx.)
Total Revenue generated in single order - - 570*165
Rs. 94,050
77. 76
f we assume that each new outlet will place same order 4 times in a month then Total Revenue per
year = 94050*4*12 =Rs. 45,14,400.
Hence we can see the huge revenue generated by the horizontal Expansion It also increased the
visibility and market share of the coca cola products.
Revenue generated by "HE" for different distributors:
There are different distributors of coca-cola in Rajkot to cover different areas. We helped those
distributors to increase their revenue by creating new outlets in their areas. All 55 new outlets created
by us are served by specific distributor under which particular outlets fall. Following chart shows
revenue generated for different distributors by "Horizontal Expansion
78. 77
Chart 3:
Reven ue Generated
30
10
5
Parth
Enterprise
Balaji
Enterprise
Madhav
Enterprise
Siddhbali
Enterprise
Other
Distributor
s
• Revenue Generated 18,810 23,940 22,230 11,970 17,100
Chart: 3- Revenue generated from the 1 st
order for particular distributor
Above chart illustrates revenue generated from the first order of all 55 new outlets for individual
distributor. From this chart we can conclude that Balaji Enterprise has generated large amount of
revenue through this campaign undertaken by us. More numbers (14 outlets) of new outlets fall under
area of this distributor so it has generated high revenue. Parth Enterprise has generated revenue from
1 1 new outlets simultaneously Madhav and Siddhbali Enterprises have generated revenue from 13
and 7 new outlets respectively. 10 outlets were covered by other distributors of Rajkot.
526. . : Benefits of horizontal expansion
• Provides Incremental Volume & Revenue for the Business.
• By horizontal expansion there will be more outlets of our products in the market which
will sell our products in more quantity. This will generate incremental revenue for the
business.
• Helps to improve route productivity:
• There are pre determined routes through which product is transported and delivered at the
coca-cola outlets. f we open more outlets on the routes it will increase the productivity
because more outlets will be covered and more products will be delivered with a
negligible increase in time and efforts. Hence it will improve productivity of the route.
79. 78
• Opening new outlets will also give more revenue to our distributors hence it improves
profitability of our distributors.
• Reduced dependence on large customers. We know that coca-cola products have a very
good demand and to comply with this we have to provide large amount of supply. In
case we have few outlets a large amount of stock is gathered at few retailers. In this case
they become monopolistic and so they can demand more things like coolers, discounts,
margins etc. from the company. So it is very necessary to reduce dependence on large
retailers by opening new outlets.
527.. . • Role of "Horizontal Expansion" in Sales Promotion
This campaign named "Horizontal Expansion" has proved its role in sales promotion of coca-cola
products as it has helped in generating large amount of incremental revenue for Coca-cola. t has also
helped to convert Pepsi outlets in to Coca-cola outlets. These newly generated "55" outlets will help
HCCBPL to come in touch with more number of retail customers which ultimately leads to expand
current market of Coca-cola.
Hence we can say that this campaign has served its purpose for which had been designed.
81. 80
1. The quality of interaction between the company official & retailers should be improved
2. Schemes should be made such that customers and retailers both get benefited through the
schemes
3. Monthly meetings should be arranged to access the performance of poor markets. This will give
them a sense of responsibility.
4. Coca-Cola needs to view its intermediaries in the same way that it views its end uses. The
company should determine channel numbers needs and should provide Capability building
program's to improve intermediaries performance.
5. Company should keep the retailers happy by paying regular visits to them and also ask them to
continuously monitor the consumers and their problem.
6. Company should use motivators like high margin, special deals, advertising allowance etc.
7. The company should clearly communicate what it wants from its retailers in the way of market
coverage, market development and marketing information.
8. Coca Cola has competition with Pepsi. Therefore it advisable that prompt and proper service be
maintained. Also the product quality should be checked before delivery.
9. Coca Cola must periodically evaluate its channel performance against standards such as sales,
average inventory levels, customer delivery time, treatment of damaged goods and cooperation in
promotional training program. It is important that under performers need to be remotivated or
terminated.
10. .Brand image has been the first and foremost important thing in Fast Moving Consumer Goods
(FMCG) segments. Coca-Cola has made good brand reputation among the customers. It gets
hamper due to weak supply that is provided to retailers and consumers. This will increase the
satisfaction level of the customers
.
11. Retailers and Consumers have sense of belongingness towards the
Hindustan Coca-Cola Beverages Pvt. Ltd. (HCCBPL).
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Chapter 7
LIMITATIONS OF THE STUDY
1. The major limitations of the project work under study is time, since it is to be completed
within a period of 50 days and this time period may not be sufficient to undertake a
comprehensive study
2. This study is exclusively from HCCBPL, Rajkot and the results cannot be extrapolated to
other organizations or other territories.
3. Being a project student, it created some hurdles in getting the information from the
respondents and outlets.
4. Being a student, financial constraint was also there to conduct some study in detail.
5. The area was too big to cover as the market share of HCCBPL is high.
