MD SARTAJ ALAM

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A
SUMMER INTERNSHIP PROJECT REPORT
ON
“CHANNEL OF DISTRIBUTION OF COCA-COLA”
AT
HIDUSTAN COCA-COLA BEVERAGES PVT.LTD
PATNA
PREPARED BY
Md. Sartaj Alam
ACADEMIC YEAR:-2013-2015
Submittedto:- Submittedby:-
Mr. Mukeshkumar Md Sartaj Alam
Faculty of Management Enr. No:1132311768
CIMAGECOLLEGEPATNA

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Ref. ................ Date:-
GUIDE’S CERTIFICATE
TO whom so ever it may concern.
This is to certify that Md.Sartaj Alam, Enrollment no-1132311768 of
MBA Session:-2013-2015 has completed a project report on Coca-Cola
Beverages Pvt. Ltd, Patna under guidance and this computation is an
outcome of her own effort.
I recommended this project report to be accepted and evaluated.
(Mr. Mukesh Kumar)
Faculty Member
Dated:-……………….

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Declaration
I Md. Sartaj Alamstudent of MBA, hereby declare that my projectwork,
presented in this reportis my original work and has been carried out under the
supervision of Mr. Mukesh Kumar of CIMAGECollege Patna affiliated to SHIATS
University Allahabad.
This work has not submitted to any other university for any examination.
Date:-
Place:-Patna Md. Sartaj Alam

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Acknowledgement
I am highly indebted to Coca-Cola Capability Executive Md. Nadeem
Akhtar for their guidance and constant supervision as well as for
providing necessary information regarding the project & also for their
support in completing the project.
I would like to express my gratitude towards my parents & member of
Coca-Cola for their kind co-operation and encouragement which help
me in completion of this project.
I would like to express my special gratitude and thanks to industry
persons for giving me such attention and time.
My thanks and appreciations also go to my colleague in developing the
project and people who have willingly helped me out with their
abilities.
Thanking you.
Date: - Yours Faithfully,
Place:-Patna Md. Sartaj Alam

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PREFACE
Marketing plays pivotal role in today’s business scenario in consumer
product Company, when there is such a high competition in the market.
The emphasis is the project is providing the study and an insight into
Indian FMCG Business Scenario. The Summer Project is designed to
provide participation of MBA program as on the job experience. This
has given a chance to try and apply the academic knowledge and gain
insight into corporate culture. This helps in developing-making abilities
and emphasizes on active participation by the student.
We undertook our Project in Hindustan Coca-Cola Beverages Pvt.Ltd. at
Patna, a leading Bottler and marketing partner of the Coca-Cola. During
the training, we had worked on the project “Channel of Distribution of
Coca-Cola in Patna.”
We gained valuable experience & during the survey. The project
consists of our finding after data analysis & then SWOT analysis &
conclusion were drawn and finally recommendations were put forward.
(Md. Sartaj Alam)

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CONTENTS
Guide Certificate
Acknowledgement
Preface
TOPIC PAGE NO
Chapter-1 Introductionof the study 8-13
(a) Objective of the study
(b) Scope of the Study
(c) Methodology to be used
(d)Limitation of the Study
Chapter-2 Introductionof the organization 14-43
(a) History of the Organization
(b)ProductProfile
(c) Competitors of the Organization
(d)Market Share
(e) Organization Structure
Chapter-3 A Theoretical Aspect of Channel of Distribution 44-66
Chapter-4 A Practical Aspect of Channel of DistributionOf Coca-Cola 67-77
Chapter-5 DataAnalysis andInterpretation 78-89
Chapter-6 Conclusionandsuggestion 90-92
Appendices
 Questionnaire 93-95
 Bibliography 96

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Chapter-1
Introduction to the Study
a) Objective of the Study
b) Scope of the Study
c) Methodology to be used
d) Limitation of the Study

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INTRODUCTION OF THE STUDY
The distribution network of Coca-Cola is well known for its efficiency but company
constantly strives for the betterment of their distribution network system.
Emphasis of our study was to focus on the customer of company i.e. the retailers.
The Retail Mapping of Patna is an integral step for the assessment, development
and betterment of this system. The distribution system not only comprises the
movement of the product but also incorporate the merchandising of the product,
which is very broad in its purview.
The project incorporates the analysis of the performance of Coca-Cola and
probing into opportunities of increasing the market share in Patna. The entire
process had to be in an organized manner in order to deliver meaning result for
the purpose of decision-making.
Coca-Cola boats of having the maximum market share in the beverage segment in
and are in constant process for the betterment of its product performance and
customer as well retailer’s satisfaction.
Distribution channel is having an important role in positing of the product
because we know that distribution channel is tool by which we can make reach
our product to the final consumer.

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OBJECTIVE OF THE STUDY
(1)To assess the competitive strength of the product and consequences of
plan.
(2)To find out the problem faced by the channels of distribution.
(3)To increase penetration in the market.
(4)To see the distribution gap by which the product is selling.
(5)To recommend the most suitable distribution methods for the product
and the market

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SCOPE OF THE STUDY
The main scope of the study is the study is to ascertain various methods to
channel of distribution of Coca-Cola Beverages Pvt.Ltd.in Patna.
Knowledge about purely academic, this study may prove helpful for Distribution
and marketing although the purpose of the study is for management to analyses
to known and to find out the future prospect of Coca-Cola. I conducted market
survey and got various opinions about the Coca-Cola from survey for Coca-Cola.

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METHODOLOGY TO BE USED
During the entire study following methods were followed which werefound to be
most effective:-
 RESEARCH DESIGN
A research design is the arrangement of conditioned for collection and analysis of
data in a manner that aims to combine relevance to the research purpose which
economy in procedure. Main characteristics of research design can be
summarized in two words-
1- Anticipation
2- Specification
My research design is “DESCRIPTIVE REASERCH DESIGN” In my research,
researchers has conducted a market survey of the Coca-Cola in Patna area.
Sample size
In my researchers I have conduct 100 respondent for interview.
Personal Discussion:-
A lot of information on the subject, which were well known to the different
departments and branches of the company, were prevalent. Academic went to
these depts. And braches together, these information from their respective
heads.

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Documentary Observations:-
Secondary source like books, journals published and unpublished materials from
different departments of the company were consulted.
Field Observation:-
During the training period the investigator visited Patna market being sent by
HCBL to observe how the marketing operations were being performed there.
The marketing strategies and operation are closely observed for all these
information the investigators visited retailers dealers and as well as consumer to
assess the present market situation of the product of HCBL.

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LIMITATIONS OF THE STUDY
Twelve weeks period is not sufficient to go through the entire topic. For through
study it needs more time. It’s also difficult to make field study or survey under the
scorching sun of June. But the major difficulty that was faced is the extreme non
co-operation of the official about the data. They were very much reluctant about
this matter, which made the study more tiresome. Moreover, it is quite
impossible to conduct survey of each and every outlet in such a short span of
time. Overcoming the odds, I tried my level best to synchronize all the facts,
realizations and information gathered in an orderly way within the course of this
project report.

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Chapter-2
Introduction of the Organization
a) History of the organization
b) Product profile
c) Competitors of the organization
d) Market Share
e) Organizational structure

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INTRODUCTION OF THE ORGANIZATION
On August 20, 2003 Sanjiv Gupta, President and CEO of Coca-Cola India, sat in his
office contemplating the events of the last two weeks and debating his next
move. Sales had dropped by 30-40% in only two weeks on the weeks on the heels
of a 75% five-year growth trajectory and 25-30%year-to-date growth. Many
leading clubs, retailer, restaurants and college campus across the country had
stopped selling Coca-Cola and only six weeks new role as CEO, Gupta was
embroiled in a crisis that threatened the momentum gained from a highly
successful two-year marketing campaign that had given Coca-Cola market
leadership over Pepsi.
On August 5th
, The center for Science and Environment (CSE),an activist group in
India focused on environmental sustainability issues (specifically the effects of
industrialization and economics growth) issued a press release stating: “12 major
cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide
residues”(see Exhibit 1).According to tests conducted by the pollution Monitoring
Laboratory (PML) of the CSE from April to August, three sample of twelve PepsiCo
and Coca-Cola brands from across the city were found to contain pesticide
residues surpassing global standard by 30-36 times including
linden,DDT,malathion and chlorpyrifos (see Exhibits 2).These four pesticides we
known to cause cancer, damage to the nervous reproduction systems, birth
defects and severe disruption of the immune system.
In reaction to this report, the Indian government banned coke and Pepsi products
in Parliament and state government launched independent investigation, sending
soft drink samples to labs for testing. The Coca-Cola Bottling company

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(Coke) stock dipped by five dollars on the New York Stock Exchange from $55 to
$50 in the sixsessions following the August5disclosure, as did shares of Coca-Cola
Enterprises (CCA).
Pepsi and Coca-Cola called CSE allegation “baseless” and the question the
methods of testing but the CSE claimed it had followed standard procedures
documented by the US Environmental Protection Agency including Gas
Chromatography and Mass Spectrometry.
Pepsi’s own tests conducted at an independent laboratory showed no detectable
pesticides and led Pepsi to file petition with high court questioning the credibility
of the CSE’s claims while Coke’s Gupta commented: “The allegation is serious and
it has potential to tarnish the images of our brands in the country .If this
continues, we will consider legal recourse.”
Despite Coke and Pepsi’s early responses denying the validity of the CSE’s claims
and threatening legal action, a survey conducted in Delhi a few days after the CSE
announcement found that a majority of consumer believed the finding were
correct and agreed with parliament’s move to ban the sale of soft drinks. It was
clear that $1 billion Indian soft drink market was at stake and Gupta had to act.
HISTORY OF THE ORGANIZATION
The Early Days
Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta,
Georgia, who sold the syrup mixed with fountain water as a potion for mental and
physical disorders. The formula changed hands three more times before Asa D.
Candler added carbonation and by 2003, Coca- Cola was the world’s largest
manufacturing, marketer, and distributor of nonalcoholic beverage concentrators
and syrups, with more than 400 widely recognized beverage brands in its
portfolio.

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With the bubbles making the difference, Coca-Cola was registered as a trade
make in 1887 and by 1895, was being sold in every state and territory in the
United States. In 1989, it franchised its bottling operation in the U.S, growing
quickly to reach 370 franchises by 1910.
Headquarters in Atlanta with division and local operation in over 200 countries
world –wide, Cola-Cola generated more than 70 % of its income outside United
States by 2003.
International expansions
Coke’s first international bottling plants opened in 1906 in Canada, Cuba and
Panama .By the end of the 1920’s Cola-Cola was bottled in twenty-seven
countries throughoutthe world and available in fifty-moremore. In spite of reach,
volume was low, quickly inconsistent and effective advertising a challenge with
language, culture , culture, and government regulation all serving as barriers .
Former CEO Robert Woodruff’s insistence that Coca-Cola wouldn’t “suffer the
stigma of being an intrusive American Products,” and instead would use local
bottles, caps, machinery trucks, and personnelcontributed to coke’s challenges as
well with a lack of standard processes and training degrading quality.
Coca-Cola continued working for over 80 years on woodruff’s goal: to make coke
available where and whenever consumer wanted it, “in arm’s reach of desire.”
The Second World War proved to be the stimulus Coca-Cola needed to build
effective capabilities around the world and achieve dominants global market
share woodruff’s patriotic commitment “that ever cost to our company” was
more than just great public relation. As a result of Coke’s status as a military
supplier, Coco-Cola was exempt from sugar rationing and also received
government subsidies to build bottling plants around the world to serve WWII
troops.

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Turns of Century Growth Imperative
The 1990’s brought a slowdown in sales growth for the Carbonated Soft Drink
(CSD) industry in the United States, achieving only 0.2% growth by 2000(just
under 10 billion cases) in contrast to the 5-7% annual growth experienced during
the 1980’s.While per capita consumption throughout the world was a fraction of
the United States’ major beverage companies clearly had to look elsewhere for
the growth their shareholders demanded. The looming opportunity for twenty-
first century was in the growth their rapidly growing middle class populations.
The World’s Most Powerful Brand
Inter brand’s Global Brand Scorecard for 2003 ranker Coca-Cola the #1 Brand in
the World and estimated its brand value at $70.45 billion. The ranking’s
methodology determined a brand’s valuation on the basis of how much it was
likely to earn in the future, distilling the percentage of revenues that could be
credited to the brand and assessing the brand’s strength to determine the risk of
future earnings forecast. Consideration included market leaderships, stability and
global reach, incorporating its ability to cross both geographical and cultural
borders.
From the beginning, Coke understood the importance of branding and the
creation of a distinct personality. Its catchy, well-liked slogans (“it’s the real thing”
(1942, 1969), “Things go better with coke”(1963), “ coke is it” (1982), can’t beat
the Feeling” (1987), and a 1992 return to “can’t beat the real thing”) Linked that
personality to the core values of reach generation and established Coke as the
authentic, relevant, and trusted refreshment of choice across the decade and
around the globe.

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Indian History
India is home to one of the most ancient culture in the world dating back over
5000 years. At the beginning of the twenty-first century, twenty-six different
languages were spoken across India, 30% of the population knows English, and
greater than 40% were illiterate. At this time, the nation was stark. Remnants of
the new were stark. Remnants of the caste system existed alongside the world’s
top engineering schools and growing metropolises as the historically agriculture
economy shifted into the services sector. In the process, India had created the
world’s largest middle classes, second only china.
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 2.6 million retailers. Today, our brands are the leading
brands in most beverage segments. The Coca-Cola Company’s brands in India
include Coca-Cola, Coca-Cola Zero, Diet Coke, Thums Up, Fanta, Limca, Sprite,
Maaza, Minute Maid range of juices, Georgia and Georgia gold range of hot and
cold tea and coffee options, Kinley and Bonaqua packaged drinking water, Kinley
Club Soda, BURN, Kinley Glucojal and Vitingo.
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 Coca-Cola Beverages Pvt. Ltd; thirteen
licensed bottling partners of The Coca-Cola 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

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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 systemin 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 1, 50,000 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 410
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

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to incremental growth for enterprises engaged in post-production 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.
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 themessageof inclusive growth and development. For
more details on activities of the Coca-Cola India Foundation, please visit the
website of the Coca-Cola India Foundation

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THE ADVERTISING STRATEGIES OF PEPSI AND COCA COLA IN INDIA
Contrary to popular belief, advertising is as much a science as it is an art. As the
primary mode of communication between a company and its prospective
customer, an advertisement must connect to the consumer, and create in his
mind an attractive image of the brand. The average consumer gets lost in the vast
sea of information, and is unable to differentiate one product from another.
Notwithstanding the scientific inputs that go into designing an advertising
campaign, some campaigns make history while others fail miserably. Why?
Ads are no longer informative tools, but, as Poises aptly points out, there has
been a “shift in attention away from the physical aspects and functional benefits
of products to their symbolic associations, expressiveness”. Marketing has
ventured into the emotional, the behavioral, and the cognitive. Today, the
primary objective of the ad is to create an image. The fierce competition between
cola giants PepsiCo and the Coca Cola Company (henceforth, Coca Cola) - and the
advertisement strategies adopted by them in India to establish their respective
brand images – offers an interesting insight into Image Advertising.
Brand Identity
The first step in understanding Image Advertising is to understand the image
being created, i.e. Brand Image. Brand Image is consumers’ perception of the
brand in question. This perception might actually be different from what the
brand actually embodies – the Brand Identity. Advertising bridges the gap
between Brand Image and Brand Image.

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Exhibit 1: Kapferer's Prism1
There are a number of tools available to explore the identity of a brand. One such
tool is Kapferer’s Prism (Exhibit 1). As shown in the exhibit above, there are many
facets to a brand. Kapferer identifies six key characteristics that together define
the brand:
Physique – the physical attributes of the brand
Personality – the personification of the brand
Relationship – the relationship between the consumer and the brand

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Culture – the core values of the brand
Reflection – the way consumers want to be perceived when using the brand
Self-Image – the image that consumers have of themselves when associated
with the brand
A combination of these characteristics can be used to identify what the brand
ultimately stands for. These exercises were performed on a few brands each from
the stables of both PepsiCo and Coca Cola; Exhibit 2 depicts the results of these
exercises.
Exhibit 2: Brand Proposition
Identity to Image – Evolution of Strategies

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A closer look at the brand identities of each of the brands helps assess how
successful their advertising campaigns have been in creating a brand image in
tune with it, while being sensitive to the value system of the target audience.
PepsiCo’s Campaign
The analysis of Pepsi, 7 UP and Mountain Dew from the portfolio of PepsiCo puts
forth some interesting aspects about the evolution of these brands. Pepsiwas one
of the first products to Indian markets after the economic reforms of 1991.
Pepsi
Pepsi began with the Yehi hai Right Choice Baby campaign, which has been one of
the most memorable campaigns of the brand, featuring celebrity endorsers such
as Shah Rukh Khan among others. The focus, as is clearly evident, is on the
product with the youth as its target segment. Yeh Dil Mange More and Yeh Pyaas
Hai Badi were some of the later campaigns.
Yeh Dil Mange More campaign was again a great success, having balanced the
emotional as well as the functional appeal of the product. Featuring Sachin
Tendulkar and many other leading stars at that point of time, this was also one of
the longest campaigns carried out by Pepsi. The company however failed to
maintain the trend and leverage it. Instead of moving on to a complete emotional
appeal platform, the company decided on a product based promotion campaign.
Though there is still some amount of emotional appeal to its campaigns, the
principal focus is on the product - it being a preferred thirst quencher.

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7 UP
In its early days, 7 UP inherited the global Fido-Dido campaign for promotion in
India as well. However, with changing times and a contextual difference in India, a
much more focused campaign was required. This led to the Keep It Cool
campaign, which was targeted primarily at the youth and the teenager segment.
Hence the appeal was at a more subtle, emotional level, which was meant to
convey a potential lifestyle statement. The recent campaign of Bheja Fry
essentially leverages on the same emotional appeal where the Keep It Cool
campaign has been somewhat tweaked to have a local appeal.
Mountain Dew
Mountain Dew is the latest entrant in the product portfolio. This product too has
the appeal of being the drink of a daredevil or the No Fear personality. The
campaigns launched include Do the Dew and Dar Ke Aagey Jeet Hai. The initial
campaign was unclear in terms of its appeal and the target segment, as a result of
which the brand suffered some jolts in the beginning. However, the latest
campaign captures the No Fear or the Macho Man image. In this sense, the brand
directly competes with Thumps Up from the Coca Cola Stable
Coca Cola’s Campaign
The Coca Cola campaign in India, however, has been different from that of Pepsi,
even though they both share similar product traits. Coca Cola had a presence in
India before 1977, but was subsequently forced to exit the Indian market. When
the company returned to India post liberalization, it came up with an innovative
communication and advertising strategy. Coca Cola has essentially been following
the principle of differentiation.

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Coca Cola
Jo Chaaho Ho Jaaye, Coca Cola Enjoy was one of the company’s first campaigns in
India. It was remarkably well executed, and appealed both at a product level as
well as at an emotional level. These ads featured celebrities such as Hrithik
Roshan and Aishwarya Rai. The target segment for Coca Cola in its initial days was
The youth segment and this campaign clearly connected well with the segment.
However, the next advertising campaign of Thanda Matlab Coca Cola was
launched with an objective to have a mass appeal. The campaign leveraged the
product platform rather than the emotional platform that it had established
earlier.
It is however, important to note here that Coca Cola made some exceptions for
India. The company has similar marketing strategies across geographies and
usually doesn’t depend on celebrity endorsements. But given the great fan-
following, and in adapting to the Indian context, the company had to initially
deviate from its set charter. However with the current campaign of Open
Happiness, Coca Cola seems to have achieved both an emotional as well as a mass
appeal. There is a very natural connect with the target segment, that of
celebrating every day, and sharing small moments of joy with our loved ones,
irrespective of any barriers.
Sprite
Sprite - the other brand from the Coca Cola stable – began its journey with the
campaign titled All Taste No Gyaan. This appealed greatly to the youth who don’t

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like to be preached and relish their sense of ownership and decision making.
Sprite has never depended on celebrity endorsements as a way to gain brand
recognition or consumer recall. The ads are designed to be very witty, and
generally connect very well with the target audience by capturing every day
moments. Seedhi Baat No Bakwaas - its next campaign – instantly connected with
the target audience by coming across as a brand that was different from the
other, one that focused on the individuality of the consumer. The emotional
appeal is much stronger and shows a clear sign of maturity of the campaign.
Proposed Framework
This analysis brought to light the roles played by each brand in the company’s
overall advertising strategy. Not every brand took the centre-stage: some were
the core brands, while others were used as defensive shields and offensive
attackers to fight off competition. The following framework helps classify
different brands based on the roles each of them plays:
The Core Brand – the flagship brand of the company
The Cover Brand – acts as a cushion to the core brand; soaks up competition
The Stand-Alone Brand – neither core nor cover; independent
Brand Portfolio Analysis
The brands in the portfolio of Pepsi and Coca Cola play an important role in terms
of the overall impact they have on brand recall and consumer loyalty. The
framework developed herein attempts to identify the importance of each brand
in the portfolio and the role it plays.

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In the case of The Coca Cola Company, Coca Cola is the core brand or the flagship
brand. The focus, therefore, is on capturing the maximum value that the brand
can generate. In this case, Sprite plays the role of a cover brand (Exhibit 3). Any
spoof or threat on Coca Cola is countered by Sprite. However, off late, Sprite is
moving up the ladder to become a core brand in the portfolio. The importance of
a cover brand is that it allows for maintaining a planned advertising strategy. This
builds brand value and creates no confusion about brand proposition.
Exhibit 3: Brand Roles
In case of PepsiCo, Pepsi is the core brand or the flagship brand. However,
Mountain Dew and 7 UP have played the role of standalone brands. Therefore,
Pepsi has to constantly respond to spoofs and threats from other brands by
tweaking or changing its planned advertising strategy. This strategy may lead to
confusion in minds of the consumer about the brand proposition. Such a situation
can be critical with regard to the connection a brand establishes with its target
consumer segment. Recent trend suggests at Mountain Dew taking up the role of
a cover brand in the PepsiCo brand portfolio.

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Conclusion
This analysis led to some interesting insights. For a start, the image of the brand
must be consistent not only with its identity, but with the value system of the
target segment. It is, in fact, the complexity of the value system of the target
segment of Pepsi and Coca Cola that allows for such a contrast in advertising
styles. Furthermore, the race for prime position involves a well thought out
strategy with clear cut roles for each of the brands in a portfolio. Advertising is
indeed both an art and a science. The shift from information to image displays the
rich potential of the advertising space. The exhilarating pace of evolution from the
simple creative to the strategic takes your breath away. Definitely not for the faint
hearted!
PRODUCT PROFILE OF THE ORGANIZATION
 COCA-COLA
Created in 1886 in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first
offered as a fountain beverage at Jacob's Pharmacy by mixing Coca-Cola syrup
with carbonated water.

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Coca-Cola was patented in 1887, registered as a trademark in 1893 and by 1895 it
was being sold in every state and territory in the United States.
In 1899, The Coca-Cola Company began franchised bottling operations in the
United States and in 1906 bottling operations for Coca-Cola began to expand
internationally.
SPRITE
Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink.
Sprite is sold in more than 190 countries and ranks as the No. 3 soft drink
worldwide
FANTA
Introduced in 1940, Fanta is the second oldest brand of The Coca-
Cola Company and our second largest brand outside the US. Fanta Orange is
the leading flavor but almost every fruit grown is available as a Fanta flavor
somewhere. Consumed more than 130 million times every day around the
world, consumers love Fanta for its great, fruity taste.

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DIET COKE
Diet Coke, also known as Coca-Cola light in some markets, is a sugar- and calorie-
free soft drink. It was first introduced in the United States on August 9, 1982, as
the first new brand since 1886 to use the Coca-Cola Trademark. Today, Diet
Coke/Coca-Cola light is one of the largest and mostsuccessfulbrands of The Coca-
Cola Company, available in more than 150 markets around the world.
COCA-COLA ZERO
Coca-Cola Zero Can Small
Coke Zero was Coca-Cola's largest product launch in 22 years and launched in
2005, reaching billion-dollar status in 2007. Coca-Cola Zero offers great Coke
taste, uplifting refreshment and zero sugar.

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DASANI
Dasani Bottle Small
Pure, crisp DASANI delivers fresh taste with a clean, fresh style. DASANI DROPS is
the vibrantand delicious drop that transforms everyday moments into something
deliciously fun, unexpected and colorful. A refreshing duo.
MINUTE MAID
Minute Maid small bottle
Minute Maid has been making juice for more than 60 years and has a heritage of
nutrition, innovation, and quality. In 1945, the U.S. Army ordered 500,000

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pounds of powdered orange juice fromthe Florida Foods Corporation, which later
renames itself to Vacuum Foods and then finally the Minute Maid Corporation.
The Minute Maid Corporation was acquired by The Coca-Cola Company in 1960,
marking its first venture outside of soft drinks.
CIEL
Ciel Water Bottle Small
Ciel is purified, noncarbonated bottled water that has been enjoyed by consumers
since 1996. Ciel Mineralizada, a bottled mineral water, became available in
Mexico in 2001.
View Ciel on Journey | View Ciel on the web

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POWERADE
POWERADE Bottle Small
POWERADE™ combines carbohydrates, electrolytes with fluids for energy and
hydration. It quenches thirst and replenishes minerals and carbohydrates lost
during sports or other intense activities. In most markets, POWERADE is
scientifically formulated with the ION4® Advanced Electrolyte System, which
helps replenish 4 key electrolytes lost in sweat: Sodium, Potassium, Calcium, &
Magnesium.
SIMPLY
Simply Orange Small Bottle
Simply Orange is a premium, gently pasteurized, not from concentrate 100%
orange juice. Available in six varieties, Simply Orange is never frozen and never
sweetened.

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COCA-COLA LIGHT
Coca-Cola light Bottle Small
Diet Coke, also known as Coca-Cola light, is a sugar- and calorie-free soft drink
with a deliciously crisp taste that gives you a light boost in your busy day. It was
first introduced in the United States on August 9, 1982, as the first new brand
since 1886 to use the Coca-Cola Trademark. The brand created an entire new
category and a new way of life. Today, Diet Coke/Coca-Cola light is one of the
largest and most successful brands of The Coca-Cola Company, available in over
150 markets around the world.
FRESCA
Fresca Can Small
With a unique citrus taste, Fresco is a caffeine-free soft drink for discriminating
adults. Fresco was introduced in the United States in 1966 as a calorie-free
grapefruit-flavored drink. Its bubbly, crisp, light taste provides a flavorful
beverage to consumers who want great citrus taste in a calorie-free soft drink.
Fresco is sweetened with sugar in some parts of the world

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GLACÉAU VITAMIN WATER
Glacéau vitamin water bottle small
Glacéau vitamin water has always been a simple idea. Start with water. And then
add bold, fruity flavors and just the right amount of sugar to make it delicious.
Finally, top it off with a little extra nutrition. Genius. And it never would’ve
happened if someone hadn’t looked at a plain bottle of water and said, “what if
this was a little better?” making things a little better is what makes glacéau
vitamin water great.
Glacéau vitamin water, the pioneer of the nutrient-enhanced water beverage
category, is available in over 26 countries. Grab cold vitamin water and make your
day a little better. Also available with no calories in many countries—
glacéauvitaminwater zero.
DEL VALLE
Del Valle Brand has its roots in Latin America and recently joined our ‘billion’
dollar brand status within The Coca-Cola Company portfolio of brands. It has
a diverse juice line up ranging from 100% juices and nectars to juice drinks
and is available in different convenient packaging for the whole family. The

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brand is available in Mexico, Brazil, Colombia, Venezuela, Central America,
and other markets in Latin America.
MARKET SHARE OF THE ORGANIZATION
Coca-Cola Company's market share in the United States from 2004 to 2014
This timeline depicts the market share of The Coca-Cola Company in the
United States from 2004 to 2014. In 2011, Coca-Cola's U.S. market share
amounted to 41.9 percent.
The Coca-Cola Company
The Coca-Cola Company is a producer, retailer and marketer of non-alcoholic
beverages and is well-known for its soft drink, Coca-Cola. The company was
founded in 1892 and comprises the corporate division, which is headquartered
in Atlanta, GA, and about 300 bottling partners worldwide.
The product portfolio of Coca-Cola includes non-alcoholic beverages such as
soft drinks, bottled water, sports drinks and energy drinks. The company’s
most famous soft drink is undoubtedly the soft drink Coca-Cola. Brand
rankings list the brand, for good reasons, as one of the most valuable and
recognizable brands worldwide. The history of Coca-Cola began in 1886 when
Atlanta pharmacist Dr. John S. Pemberton created flavored syrup with a
distinctive taste which could be sold at soda fountains by mixing the two
components together. The secret formula, which originated in the United
States, is still used today for producing Coca-Cola around the world.

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The home of Coca-Cola is still Atlanta, where people may visit the World of
Coca-Cola for additional information on the company’s famous history.
According to the most recent annual report, the North American segment
continued to be the company’s flagship market with over 46 percent of global
revenue in 2014.
Statistics of the Coca-Cola Company and facts
Everyone has heard of Coca-Cola, and you would be hard pressed to find
somebody who was unable to recognize the iconic white lettering against the
bright red background of this global brand. Various sources cite Coca-Cola as a
billion dollar brand and that is not surprising, when one considers it was rated by
Inter brand as one of the most valuable brands in 2014, based on a brand value
amounting to 81.56 billion U.S. dollars.
The Coca-Cola Company is a global key player in the beverage industry. The firm
comprises the corporate division, headquartered in Atlanta, GA, and about 300
bottling partners worldwide. According to its most recent annual report from
2014, Coca-Cola's net operating revenue amounted to 46 billion U.S. dollars.
Bringing in 46.7 percent of the global revenue in 2014 was the North America
segment, making it the company's flagship market.
In the U.S., the Coca-Cola Company held a market share in the soft drink segment
with 42.3 percent in 2014. The company’s leading four brands in the U.S. market
are Coca-Cola, Diet Coke, Sprite, and Fanta. The Coca-Cola Classic brand itself,
held a market share of 17.6 percent in the United States in 2014

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ORGANIZATION STRUCTURE

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Chapter-3
A Theoretical aspect of Channel of Distribution

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DEFINITION of 'Distribution Channel'
The chain of businesses or intermediaries through which a good or service passes
until it reaches the end consumer. A distribution channel can include wholesalers,
retailers, distributors and even the internet. Channels are broken into direct and
indirect forms, with a "direct" channel allowing the consumer to buy the good
from the manufacturer and an "indirect" channel allowing the consumer to buy
the good from a wholesaler. Direct channels are considered "shorter" than
"indirect" ones.
INVESTOPEDIA EXPLAINS 'Distribution Channel'
Goods and services often pass to consumers through multiple channels. While
increasing the number of ways in which a consumer can find a good has the
potential to increase sales, it also creates a complex system that can make
distribution management difficult. In addition, the longer the distribution channel
the less profit a product manufacturer might get from the sale.
We are a global business that operates on a local scale, in every community
where we do business. We are able to create global reach with local focus
because of the strength of the Coca-Cola system, which comprises our Company
and our more than 250 bottling partners worldwide.
Distribution channels vary in terms of the number of stages a product goes
through between producer and final consumer. “Long” channel routes involve
one or more intermediaries such as wholesalers, retailers and agents. In “short”
channels, the product is supplied to the consumer directly from the producer
without the use of intermediaries (sometimes also called “middlemen”).

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Each layer of marketing intermediaries that performs some work in bringing the
product to its final buyer is a “channel level”. The figure below shows some
examples of channel levels for consumer marketing channels:
In the figure above, the first two channels are “indirect-marketing channels” or
“long” channel routes.
Channel 1 contains two intermediary levels - a wholesaler and a retailer. A
wholesaler typically buys and stores large quantities of several producers’ goods
and then breaks into bulk deliveries to supply retailers with smaller quantities. For
small retailers with limited order quantities, the use of wholesalers makes
economic sense. This arrangement tends to work best where the retail channel is
fragmented - i.e. not dominated by a small number of large, powerful retailers
who have an incentive to cut out the wholesaler. A good example of this channel
arrangement in the UK is the distribution of drugs.
Channel 2 contains one intermediary. In consumer markets, this is typically a
retailer. The consumer electrical goods market in the UK is typical of this
arrangement whereby producers such as Sony, Panasonic, Canon etc. sell their
goods directly to large retailers and e-tailors such as Comet, Tesco and Amazon
which then sell onto the final consumers.

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Channel 3 is called a “direct-marketing” channel, since it has no intermediary
levels. In this case the manufacturer sells directly to customers. An example of a
direct marketing channel would be a factory outlet store. Holiday companies
increasingly direct to consumers, bypassing a traditional retail intermediary - the
travel agent. You will also have come across businesses like First Direct (banking)
and Direct Line (insurance) which built their brand proposition on dealing directly
with consumers and “cutting out the middleman”
The Coca-Cola system is not a single entity from a legal or managerial perspective,
and the Company does not own or control all of our bottling partners.
While many view our Company as simply "Coca-Cola," our system operates
through multiple local channels. Our Company manufactures and sells
concentrates, beverage bases and syrups to bottling operations, owns the brands
and is responsiblefor consumer brand marketing initiatives. Our bottling partners
manufacture, package, merchandiseand distribute the final branded beverages to
our customers and vending partners, who then sell our products to consumers.
All bottling partners work closely with customers -- grocery stores, restaurants,
street vendors, conveniencestores, movietheaters and amusement parks, among
many others -- to execute localized strategies developed in partnership with our
Company. Customers then sell our products to consumers at a rate of more than
1.9 billion servings a day. Learn more about this unique relationship.
In January 2006, our Company-owned bottling operations were brought together
to form the Bottling Investments operating group, now the second-largest
bottling partner in the Coca-Cola system in terms of unit case volume.

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Coca-Cola System wide Performance
In April 2007, associates from The Coca-Cola Company and several of our largest
bottling partners met for the first time to discuss the development of a core set of
performance indicators for the Coca-Cola system. Working groups of Company
associates and representatives from our bottling partners have been formed to
determine the feasibility -- due to the legal and management complexity of the
Coca-Cola system -- of collecting and consolidating economic and social data in
addition to the environmental data already collected. Many of our bottling
partners produce their own corporate responsibility reports which can be viewed
in the Sustainability Reports section.
Bottling Investments Group
Bottling Investments Group is a division of The Coca-Cola Company dedicated to
investing in Coca-Cola bottling operations around the world. BIG provides
leadership to drive growth in critical markets, provides venture capital to move
quickly, and often amends structural or ownership challenges. BIG is focused on
long-term sustainable growth and manages its facilities as if they were to be
owned by The Coca-Cola Company forever. BIG is committed to win in every
market and strives to become a model of collaboration with other bottlers. BIG is
currently in 19 countries and works to maintain a healthy balance of franchiseand
Company-owned bottlers in the system.

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BIG map
Coca-Cola Refreshments (CCR)
What is CCR? The Coca-Cola Company and the largest bottler, Coca-Cola
Enterprises, took actions in 2010 and 2011 to strategically advance our
partnership. The Coca-Cola Company has acquired CCE's entire North American
business, renaming the sales and operational elements of Coca-Cola Enterprises
North American businesses to Coca-Cola Refreshments (CCR). Additionally, The
Coca-Cola Company has folded in the vast majority of its U.S. and Canada
businesses into CCR. This is an exciting development in the history of the world's
greatest brand.
Understand our manufacturing process and its primary environmental impacts.

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Role of middlemen in the distribution of goods
Middlemen perform several roles and functions in the market place. Their utility
is best judged from commodity markets. Besides making the product available to
the customer, they also take the responsibility for the payment from the buyer to
the seller. Some of their key roles are summarized below.
Information
Middlemen have a role in providing information about the market to the
manufacturer. Developments like changes in customer demography, psychology,
media habits and the entry of a new competitor or a new brand and changes in
customer preferences are some kind of information that all manufacturers want.
Since these middlemen are close to the customer and present in the market place
they can provide this information at no additional cost.
Price Stability
Maintaining price stability in the market is another function a middleman
performs. Many a time the middleman absorbs an increase in the price of the
products and continues to charge the same old price to the customer. This is
because of the intra middlemen competition. The middleman also maintains price
stability by keeping his overheads low.
Promotion
Promoting the product /s in his territory is another function that the middlemen
perform. Many of them design their own sales incentive programs aimed at
building customer traffic at their outlets.

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Financing
Middlemen finance manufacturers operations by providing the necessary working
capital in the formof advancepayments for goods and services. The payment is in
advanceeven though credit may be extended by the manufacturer, becauseit has
to be made even before the products are bought and consumed and paid for by
the ultimate customer.
Title
Most middlemen take title to the goods and services and trade in their own
name. This helps in diffusing the risks between the manufacturer and middlemen.
This also enables middlemen being in physical possession of the goods, which
enables them to meet customer demand at the very moment it arises.
Thus, the role and functions of any marketing channel can be viewed from five
different perspectives or marketing flows. The definition of a channel member
goes beyond the traditional one of middlemen. Today it has come to include even
suppliers of inputs (like raw material, components, capital and even labor) and
other institutions like transport companies and banks that facilitate the
distribution process. It is in this sense that the marketing channels have to be
viewed as sets of interdependent organizations involved in the process of making
a product or service available for use or consumption.
The main objective of marketing is to create valuable exchanges between
consumers and producers. The market consists of those consumers who are
willing and able to purchase products, hence creating exchanges that satisfy both
parties. Middlemen, also referred to as intermediaries, play a vital part in
ensuring that the distribution channel between the producer and the consumer is

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complete. The more the intermediaries in the supply chain, the higher the
distribution channel.
The Advantages of Eliminating the Middleman
Thriving businesses require some basic operations and services to continue the
upward trek to profitability. Access to products and liaison services are two
examples of things a business needs that a middleman provides. The
"middleman" however, is facing extinction in some small businesses. In this
global, information era, businesses can enjoy many of the middleman benefits
without involving a third party if they have the time and energy to build key
alliances.
Lead Your Own Negotiations
The middleman is a negotiation specialist that approaches, negotiates and
contracts with wholesale distributors to supply the retail business with products.
During the negotiation process, the middleman makes the decisions about the
final price and product range. If you want to have more control over the products
you sell, and the contracts your small business is bound to, you need to lead your
own negotiations. Eliminate the middleman and negotiate product contracts for
seasonal products and regular orders.
Build Relationships with Suppliers
The second advantage to leaving out the middleman is it allows you to build
professional, one-on-onerelationships. No more hearing the latest news when it's
no longer news. You'll learn about changing product trends and upcoming
services faster than ever before. Become familiar with the suppliers in your area;

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learn more about the company missions and special projects by getting directly
involved. In return, vendors and suppliers will learn more about the company's
specific needs for today and the future.
Save Money
An intermediary or middleman spends all his time building relationships and
getting the best deal he can for his clients. Although not an employee of the small
business, as a contractor, he is entitled to a percentage of the deal or may agree
to be paid per order. Either way the smallbusiness could savemoney by taking on
the role of negotiator themselves and pocketing the intermediary's pay. The
savings could double or triple according to the number of clients and contracts he
formerly represented.
Gain Customer Information
Reducing the role of the middleman will force a small business to get to know
their customers. As the intermediary for the company, the middleman studied the
market and became familiar with the target audience. Eliminating this buffer will
force companies to identify their customer's preferences and dislikes and
recognize changes in trends. A small business could gain substantial information
about their customers just by taking on the role. Achieve a higher level of
customer satisfaction by being your own middleman.
Role and Functions of Wholesalers
The presence of wholesalers in distribution channel is very important. Besides the
functions of buying and selling or exchanging goods, the wholesalers also perform
other facilitating functions of marketing at a time. Wholesalers provideservices to
producers and retailers in different ways. The main functions to be performed by
wholesalers can be mentioned as follows:

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1. Bulk buying
Wholesalers buy bulk quantity goods of certain product lines from producers.
They work as buying agents for customers. Besides identifying customers and
their needs, wholesalers also become well informed of market and sources of
supply. The customers know wholesalers as the representative of some limited
producers of certain product lines.
2. Mass Selling
Wholesalers work as sales-force for the producers. They deliver goods to retailers
and industrial users at lower cost than the cost the producer would need if they
directly delivered or supplied. Wholesalers help in mass selling of goods by
supplying to several retailers living scattered in different places.
3. Dividing or bulk breaking
Wholesalers buy goods in bulk quantity from producers and resell in small
quantity to retailers or industrial users. In the absence of wholesalers, the
producers cannot sell their products to the retailers in bulk quantity on the one
and the retailers cannot buy in bulk quantity to sell to the final consumers on the
other. As a result, marketing gets paralyzed. So, the wholesalers serve both
producers and retailers.
4. Transportation
As wholesalers buy goods in bulk quantity, they help producers and retailers
minimize transportation cost. They provide fast delivery services to customers by
which investment in overstock and risk is minimized. Wholesalers create place
utility of goods by transporting them from one place to another with fast speed
and skill.

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5. Warehousing
Wholesalers perform an important job relating to physical distribution by
warehousing and keeping store of goods. Along with this, they also create and
increase time utility of goods by storing them and maintain proper balance
between production and demand.
6. Financing
Financing is the other important function of wholesalers. They provide credit
facility to retailers or they sell goods to retailers on credit. Doing so, they lessen
the burden of the necessity of capital on the retailers. Generally, producers
cannot provide credit facility to retailers. Wholesalers help producers by buying
goods before peak season and making payment in time. In fact, wholesalers make
arrangement of finance for the producers in the process of sales and distribution
of goods.
7. Risk bearing
In the process of sales and distribution. Wholesalers bear the risk caused by
decline in demand, fluctuation in prices, consumers' interest, change in fashion
and other factors, if wholesalers' services were not available, the producers
themselves would have to store their goods. As a result, they would have to bear
all the risks.
8. Market information
Wholesalers also provide information about market situation, competitors'
strategy and their market position, information about different goods in markets,
customers and their needs and interest etc. They also provide information about
new products, competitive activities, special sales programs of producers, price,
market situation etc.

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Functions of Retailer in the Distribution Channel:
1. Providing Assortments:
Manufacturers generally specialize in producing specific types of
products: For example, Cadbury’s makes chocolates, Kraft makes dairy
products, Kellogg makes breakfast cereals, and Everest makes spices. If
such manufacturers decided to have their own stores selling only their
own products, consumers would have to go to many different stores to
make purchases for their requirements. Retailers collect a variety of
products and services from a number of sources and then offer these as
an assortment to their customers, offering an assortment enables their
customers to choose from a wide selection of brands, designs, sizes,
colors, and prices in one location.
2. Breaking Bulk:
Breaking bulk is beneficial to both manufactures and consumers.
Manufacturers prefer to ship products in bulk quantity cartons in order to
reduce transportation costs as it is more cost effective for manufacturers
to package and ship merchandisein larger, rather than smaller quantities.
Consumers, in turn, prefer to purchase merchandise in smaller, more
manageable quantities. Retailers purchase the products in larger
quantities from manufacturers and then offer the products in smaller
quantities to the consumers as per their requirements. This is called
breaking bulk.
3. Holding Inventory:
Holding inventory is a major function of retailers in order to keep
inventory that has been broken down from their bulk packaging into

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user-friendly sizes so that products can be made available in smaller
quantities whenever consumers want them. This will enable consumers
to conveniently maintain a small inventory products at home since they
are aware that the retailers will always maintain an inventory of the
products they need at the store and make the products available when
they need more. This reduces the consumer’s cost of storing products.
Consumers find this beneficial since they have limited storage space
especially for perishable merchandise like dairy and frozen products.
4 Providing Convenient Locations and Timings:
Retailers select the locations of their stores and keep them open for
longer timings so that they are conveniently located and available to their
customers for fulfilling their requirements of goods and services as soon
as they require them.
5 Providing Services:
Retailers provide services in order to make it easier for consumers to buy
and use products: This could be in the form of providing credit to
consumers so that they can use a product now and pay for it later. This
could also involve services like providing the spacerequired for displaying
products so that consumers can see the variety and feel and test them
before buying. Retailers may also provide additional information about
the characteristics and availability of products to customers through
salespeople who are available to answer questions. With multi-channel
retailing, retailers offer the flexibility of multiple retail formats like retail
stores, web sites, mail-order catalogs, and a toll-free number. This
provides convenience and enables customers to buy anytime during the

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day or night. Customers can also choose to pick merchandise up at a
store at their convenience or have it home-delivered.
6 Recording and Providing Feedback:
Retailers record transactions and feedback from customers which they
inform back to wholesalers and manufacturers in the form of sales
forecasts, delivery delays, defective items, customer complaints,
inventory turnover, and other information. This retailer feedback enables
the wholesalers and manufacturers to modify goods and services in order
to better satisfy customers and in the process increase their sales.
7. Increasing the Value of Products and Services:
Retailers provide assortments, break bulk, hold inventory, offer
convenient locations and timings, provide services, and record and
provide feedback, thus increasing the value provided to consumers from
products and services.
SUPPLY CHAIN OF COCA-COLA COMPANY
An amazing 1.8 billion servings of Coca-Cola products are sold around the world
every day, according to Steve Buffington, vice president of supply chain
development and director of supply chain, Bottling Investments Group for The
Coca-Cola Company. Making sure that every one of its thirsty clients gets the right
product, at the right time and in the right price range is Coca-Cola’s supply chain
priority.
Buffington, a 34-year veteran with The Coca-Cola Company, has been involved in
a variety of strategies for growth and operations excellence. He has led new
developments in the Coca-Cola supply chain around the globe, from bottler
consolidation in North America in the 1980s, to procurement and supply chain
strategies in Argentina in the ’90s. In the mid-2000s, Buffington took over

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management responsibility for the Bottling Investment Group in Brazil, Uruguay,
India, Philippines and Singaporeas Coca-Cola focused on strengthening bottlers in
these key markets.
Since 2009, Buffington has been responsible for development and
implementation of strategies to support and enhance the Coca-Cola supply chain
system.
CAPABILITY EXCELLENCE
One of the main goals of the supply chain arm of Coca-Cola is to have every
customer receive tailored services from the system, whether that customer is in
New York City, Tokyo or a rural area in an isolated part of the world.
“We have 16 million retail outlets around the world that sell Coca-Cola [products],
and we have to have common practices, processes and capabilities no matter
where we operate in the world,” Buffington explains. “We do direct store delivery
to more than 10 million of those [retail outlets]. We make sure we get the
product on the shelves in a consistent way from a quality and collaborative
standpoint, doing it very efficiently by leveraging our global best practices and
building capabilities at the local level.”
Although Coca-Cola is a global company, its products never travel far to reach the
final consumer, making it a local company in each market where it operates. “Our
business is a local business,” Buffington relates. “We typically don’t ship Coca-
Cola more than a few hundred miles; it’s all about being responsive to the
customer’s needs and the local tastes of the consumers in every market.”
This approach is what Buffington calls a customer-driven supply chain. “Coca-Cola
is the same formula everywhere in the world,” Buffington notes. “The
concentrate comes froma few places around the world, so we’re pulling from the
same global commodity pool, but we still have to understand the individual
customer requirements.”

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On the commercial side, Coca-Cola works with its customers in what it calls
“brand, pack, price, channel architecture,” determining what packages to order,
what equipment to use and what service requirements will deliver the picture of
success the client has in mind. “How you serve a hypermarket such as Carrefour
or Wal-Mart is quite different to how you service a mom and pop in a rural area,”
Buffington says. “Our supply chain starts at the shelf, and with customer service
design, that is how we’re demand-driven.”
The logistics flow of the supply chain enables the company to tailor its services to
its clients’ needs. “It’s all in our demand and supply planning and in our sales
operations planning,” Buffington explains. “Planning supply is driven by
forecasted customer demand input, seasonality and also by promotions or
changes in merchandising in the store.”
Coca-Cola’s diverse portfolio and package mix is geared to meet its diverse
consumers’ and customers’ preferences. “Some customers are primarily take-
home for future consumption and some are very immediate consumption, on
premise,” Buffington says. “Many customers offer a large range of products, so
you need packaging at different price points and multi-packs; the portfolio needs
to be wide enough to serve all the beverage needs.”
MORE THAN ONE SUPPLY CHAIN
The level of customer care Coca-Cola offers requires a specific model of supply
chain structure, what Buffington calls “segmentation.” “Segmentation is the type
of supply chain that you have based on your customers’ needs or your product
attributes,” he explains. “More and more, we understand that we have to have
different types of supply chains within our local operations.
“If we are in an area that requires refrigerated distribution that is a very different
supply chain than if it’s an ambient type of product. Some products require
aseptic filling and packaging, which is very specialized and requires different

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platforms. Then, some products have high volatility and are hard to forecast,
which requires a different supply chain.”
These variable conditions mean that the supply chain has to be modified
depending on the particular attributes of both product and client. “For some
products, the most efficient way to the market is for us to deliver to the store, yet
for others, the most efficient way to go to market is through the customer’s
distribution channel or through third-party distribution partners,” Buffington
explains.
Segmentation allows Coca-Cola to understand and implement best practices and
meet its customers’ requirements in relation to their individual portfolios. “There
is efficient supply chain, there is responsive supply chain and there is agile supply
chain,” Buffington says. “Depending on the customers’ needs and their portfolio,
the supply chain can be efficient-dominant, agile or responsive-dominant. It
depends on the attributes of the portfolio and the requirements of the client.”
LOCAL SERVICE
To be able to offer that localized customer service worldwide, Coca-Cola six years
ago established the world’s largest lean-Six Sigma supply chain operation to
leverage best practices, processes and operational excellence programs. “It’s all
about being local, being responsive, being market-driven and also being able to
leverage the brand, the innovation, the technology and what we’ve learned of
best practices in our global system,” Buffington explains.
The key elements for Coca-Cola’s operational excellence programs are “culture
and capability,” according to Buffington. “It’s very important that all of our
700,000 employees – whether they’re administrative, financial, merchandising or
delivery – have a culture of continuous improvement, a culture of zero defects
and perfect quality.”

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Working collaboratively with suppliers ensures that the best practices established
by Coca-Cola are applied across the board.
“The first point of integration in the supply chain is between the Coca-Cola
company and our bottlers, some of which we own and operate, but the majority
of which are independent companies,” Buffington notes. “We own the brands, do
the marketing and product innovations. We supply the concentrates and are
involved in organizing procurement on a global basis. We provide franchise
leadership, technology, and capability and strategy development.”
Coca-Cola works closely with its bottlers around the world on procurement and
commercializing new products and new packaging technologies. “We are building
a common lean-Six Sigma program around the world,” Buffington explains. “We
share development and deployment of training programs for leadership, middle
management and front-line supervisors, so the first level of integration is that
between Coca-Cola and our bottlers.”
Coca-Cola’s supply chain is focused on delivering on its brands’ promises for great
products. “We sell refreshments and a few moments of joy to people all over the
world, so we want to keep it as affordableas we can,” he notes. “Productivity and
eliminating waste and inefficiencies is very important from the supply chain
standpoint to maintain that availability.”
Choice of Channels of Distribution
(A) Considerations Related to Product
When a manufacturer selects some channel of distribution he/she should take
care of such factors which are related to the quality and nature of the product.
They are as follows:

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1. Unit Value of the Product:
When the product is very costly it is best to use small distribution channel. For
example, Industrial Machinery or Gold Ornaments are very costly products that
are why for their distribution small distribution channel is used. On the other
hand, for less costly products long distribution channel is used.
2. Standardized or Customized Product:
Standardized products are those for which are pre-determined and there has no
scopefor alteration. For example: utensils of MILTON. To sell this long distribution
channel is used.
On the other hand, customized products are those which are made according to
the discretion of the consumer and also there is a scope for alteration, for
example; furniture. For such products face-to-face interaction between the
manufacturer and the consumer is essential. So for these Direct Sales is a good
option.
3. Perish ability:
A manufacturer should choose minimum or no middlemen as channel of
distribution for such an item or product which is of highly perishable nature. On
the contrary, a long distribution channel can be selected for durable goods.
4. Technical Nature:
If a product is of a technical nature, then it is better to supply it directly to the
consumer. This will help the user to know the necessary technicalities of the
product.

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(B) Considerations Related to Market
Market considerations are given below:
1. Number of Buyers:
If the number of buyer is large then it is better to take the services of middlemen
for the distribution of the goods. On the contrary, the distribution should be done
by the manufacturer directly if the number of buyers is less.
2. Types of Buyers:
Buyers can be of two types: General Buyers and Industrial Buyers. If the more
buyers of the product belong to general category then there can be more
middlemen. But in case of industrial buyers there can be fewer middlemen.
3. Buying Habits:
A manufacturer should take the services of middlemen if his financial position
does not permit him to sell goods on credit to those consumers who are in the
habit of purchasing goods on credit.
4. Buying Quantity:
It is useful for the manufacturer to rely on the services of middlemen if the goods
are bought in smaller quantity.
5. Size of Market:
If the market area of the product is scattered fairly, then the producer must take
the help of middlemen.

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(C) Considerations Related to Manufacturer/Company
Considerations related to manufacturer are given below:
1. Goodwill:
Manufacturer’s goodwill also affects the selection of channel of distribution. A
manufacturer enjoying good reputation need not depend on the middlemen as he
can open his own branches easily.
2. Desire to control the channel of Distribution:
A manufacturer’s ambition to control the channel of distribution affects its
selection. Consumers should be approached directly by such type of
manufacturer. For example, electronic goods sector with a motive to control the
service levels provided to the customers at the point of sale are resorting to
company owned retail counters.
3. Financial Strength:
A company which has a strong financial base can evolve its own channels. On the
other hand, financially weak companies would have to depend upon middlemen.
(D) Considerations Related to Government
Considerations related to the government also affect the selection of channel of
distribution. For example, only a license holder can sell medicines in the market
according to the law of the government.
In this situation, the manufacturer of medicines should take care that the
distribution of his product takes place only through such middlemen who have
the relevant license.

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(E) Others
1. Cost:
A manufacturer should select such a channel of distribution which is less costly
and also useful from other angles.
2. Availability:
Sometimes some other channel of distribution can be selected if the desired one
is not available.
3. Possibilities of Sales:
Such a channel which has a possibility of large sale should be given weight age.

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Chapter-4
A Practical Aspect of Channel of Distribution of
Hindustan Coca-Cola Beverages Pvt. Ltd.

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MANUFACTURING PLANT PATNA
SALES AND DISTRIBUTION OPERATION
DISTRIBUT-
ORS
OUTLETS
OUTLETS

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MARKET SEGMENTATION MODEL

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MISSION, VISION, VALUES

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PITA MODEL

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Coca Cola SWOT analysis 2013
Strengths
1. The best global brand in the world in terms of value ($77,839 billion)
2. World’s largest market share in beverage
3. Strong marketing and advertising
4. Most extensive beverage distribution channel
5. Customer loyalty
6. Bargaining power over suppliers
7. Corporate social responsibility
Weaknesses
1. Significant focus on carbonated drinks
2. Undiversified product portfolio
3. High debt level due to acquisitions
4. Negative publicity
5. Brand failures or many brands with insignificant amount of revenues
Opportunities
1. Bottled water consumption growth
2. Increasing demand for healthy food and beverage
3. Growing beverages consumption in emerging markets (especially BRIC)
4. Growth through acquisitions
Threats
1. Changes in consumer preferences
2. Water scarcity3.
3. Strong dollar4

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4. Legal requirements to disclose negative information on product label
5. Decreasing gross profit and net profit margins
6. Competition from PepsiCo
7. Saturated carbonated drinks market
Strengths
The best global brand in the world in terms of value. According to Inter brand,
The Coca Cola Company is the most valued ($77,839 billion) brand in the world.
World’s largest market share in beverage. Coca Cola holds the largest beverage
market share in the world (about 40%).
Strong marketing and advertising. Coca Cola’ advertising expenses accounted for
more than $3 billion in 2012 and increased firm’s sales and brand recognition.
Most extensive beverage distribution channel. Coca Cola serves more than 200
countries and more than 1.7 billion servings a day.
Customer loyalty. The firmenjoys having one of the most loyal consumer groups.
Bargaining power over suppliers. The Coca Cola Company is the largest beverage
producer in the world and exerts significant power over its suppliers to receive
the lowest price available from them.
Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR
programs, such as recycling/packaging, energy conservation/climate change,
active healthy living, water stewardship and many others, which boosts
company’s social image and result in competitive advantage over competitors.
Weaknesses
Significant focus on carbonated drinks. The business is still focusing on selling
Coke, Fanta, Sprite and other carbonated drinks. This strategy works in short term
as consumption of carbonated drinks will grow in emerging economies but it will

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prove weak as the world is fighting obesity and is moving towards consuming
healthier food and drinks.
Undiversifiedproduct portfolio. Unlikemostcompany’s competitors, Coca Cola is
still focusing only on selling beverage, which puts the firm at disadvantage. The
overall consumption of soft drinks is stagnating and Coca Cola Company will find it
hard to penetrate to other markets (selling food or snacks) when it will have to
sustain current level of growth.
Highdebt level due to acquisitions. Nearly $8 billion of debt acquired from CCE’s
acquisition significantly increased Coca Cola's debt level, interest rates and
borrowing costs.
Negative publicity. The firm is often criticized for high water consumption in
water scarce regions and using harmful ingredients to produce its drinks.
Brand failures or many brands with insignificant amount of revenues. Coca Cola
currently sells more than 500 brands but only few of the brands result in more
than $1 billion sales. Plus, the firm’s success of introducing new drinks is weak.
Many of its introduction result in failures, for example, C2 drink.
Opportunities
Bottledwater consumptiongrowth. Consumption of bottled water is expected to
grow both in US and the rest of the world.
Increasing demand for healthy food and beverages. Due to many programs to
fight obesity, demand for healthy food and beverages has increased drastically.
The Coca Cola Company has an opportunity to further expand its product range
with drinks that have low amount of sugar and calories.
Growing beverages consumption in emerging markets. Consumption of soft
drinks is still significantly growing in emerging markets, especially BRIC countries,
where Coca Cola could increase and maintain its beverages market share.

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Growth through acquisitions. Coca Cola will find it hard to keep current growth
levels and will find it hard to penetrate new markets with its existing product
portfolio. All this can be done more easily through acquiring other companies.
Threats
Changes in consumer tastes. Consumers around the world become more health
conscious and reduce their consumption of carbonated drinks, drinks that have
large amounts of sugar, calories and fat. This is the most serious threat as Coca
Cola is mainly serving carbonated drinks.
Water scarcity. Water is becoming scarcer around the world and increases both
in cost and criticism for Coca Cola over the large amounts of water used in
production.
Strong dollar. More than 60% of The Coca Cola Company income is from outside
US. Due to strong dollar performance against other currencies firm’s overall
income may fall.
Legal requirements to disclose negative information on product labels. Some
Coca Cola’s carbonated drinks have adversehealth consequences. For this reason,
many governments consider to pass legislation that requires disclosing such
information on product labels. Products containing such information may be
perceived negatively and lose its customers.
Decreasing gross profit and net profit margins. Coca Cola’s gross profit and net
profit margin was decreasing over the past few years and may continue to
decrease due to higher water and other raw material costs.
Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over
market share in BRIC countries, especially India. Saturated carbonated drinks
market. The business significantly relies on the carbonated drinks sales.

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CHAPTER-5
Data Analysis and Interpretation

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Data Analysis and Interpretation
During the summer training, I have studied about the Channel of Distribution
while communicating about the schemes to retailers; I have interviewed retailers
on the basis of framed questionnaire.
Q.1 Coca-Cola have good distribution channel?
TABLE SHOWING WHAT RESPONDENT THINKS ABOUT COCA-COLA
DISTRIBUTION CHANNEL.
Sl. No Particulars No. of Respondent Percentage
1 Strong Agree 32 32%
2 Agree 43 43%
3 Can’t say 05 05%
4 Disagree 20 20%
Total 100 100%
ANALYSIS:
From above table it can be observe that 43% of the respondent believe that
Coca-Cola has good distribution channel and 32% of the retailer and distributor
strongly agree that company has best distribution channel while 20% disagree
that Coca-Cola do not have good distribution channel and 5% of them cannot say.
GRAPH: 1 SHOWING WHAT RESPONDENT THINKS ABOUT COCA –COLA
DISTRIBUTION CHANNEL

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INTERPRETATION:
The data shows that company have good distribution channel but should focus
more on their distribution channel and try to convert customer in strongly agree
respondent by providing them better services and schemes.
Strong Agree
Agree
Can't Say
Disagree

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TABLE 2.
Q.2 Distribution channel has an important role in positioning of the product?
TABLE SHOWING THATDISTRIBUTIONCHANNELS IMPORTANT FOR POSITIONING
THE PRODUCT.
SI.NO. PARTICULARS NO.OF
RESPONDENT
PERCENTAGE
1 Strong agree 30 30%
2 Agree 45 45%
3 Can’t say 05 05%
4 Disagree 20 20%
Total 100 100%
ANALYSIS:
From above table it can be observed that 45% of the respondent agree that
Distribution channel plays an important role in building the positioning of the
company and 30%strongly support that while 20%doesn’t agree with the
statement while 5 % chooses can’t say.

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INTERPRETATION:
It shows that our objective is fulfilled by this research and we can say that if we
have to promote our product then we should have strong distribution channel.
Most of the retailer distributors support the statement that means if distribution
channel is improved more it will help in the positioning of the company.
Strong Agree
Agree
Can't Say
Disagree

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TABLE 3.
Q 3.You being provided that V.C. Coolers by the company?
TABLE SHPOWING THAT RETAILERS ARE PROVIDED THE V.C COOLERS OR NOT
Sl.No Particulars No.of Respondent Percentage
1 Yes 70 70%
2 No 30 30%
3 Total 100 100%
ANALYSIS:
From above table it can be observed that 70% are saying that they are getting V.C
cooler from the company side to keep their product but 30% are saying that they
are not getting any V.C cooler from the company.
GRAPH 3: SHOWING THATRETAILERS AREPROVIDED THE V.C COOLERS OR NOT.
Column1
YES
NO

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INTERPRETATION:
It means company is not focusing on all retailers that major concern for the
organization. Most of the retailers having the V.C coolers which is given company
but some of them don’t have because they are smaller retail where sales very
less, also some of the retailers put have because they are smaller retails where
sales are very less, also some of the retailers puts different brands into the same
V.C. coolers by which by also they loss their V.C. coolers.

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TABLE 4
Q. 4 Coca-Cola has good relationships with the distributors/retailers?
TABLE SHOWING THE RELATIONSHIP OF THE COMPANY WITH THE
DISTRIBUTORS AND RETAILORS
Sl.No Particulars No. of Respondent Percentage
1 Strong Agree 32 32%
2 Agree 43 43%
3 Can’t Say 05 05%
4 Disagree 20 20%
Total 100 100%
ANALYSIS:
From above table it can be observed that 43% of the retailer and distributors
Agree that Coca-Cola has good relation with them and 32% strongly support the
statement while 20% of the retailer and distribution was against the statement
they said Coca-Cola doesn’t having good relation with them.
GRAPH: 4 SHOWING THE RELATIONSHIP OF THE COMPANY WITH THE
REPONDENT

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INETRPRETATION:
It shows that company should think that can they maintain better relationship
with every retailers and distributors.
Column1
Strong Agree
Agree
Can't say
Disagree

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TABLE 5.
Q.5 Perception of retailers/distributors towards the Coca-Cola distributor’s
channel?
TABLE SHOWS THE PERCEPTION OF RETAILERS /DISTRIBUTORS TOWARDS THE
COCA-COLA’S DISTRIBUTORS CHANNEL
Sl.No Particulars No. of Respondent Percentage
1 Excellent 27 27%
2 Good 55 55%
3 Bad 13 13%
4 Worst 25 05%
Total 100 100%
ANALYSIS:
Fromabove table it can be observed out of 100% respondent only 27% are saying
that Coca-Cola have excellent distribution channel and 5% are saying that Coca-
Cola have worst distribution and 13% of them says it has bad distribution channel
but 55% are saying that Coca-Cola have good distribution channel.
GRAPH: SHOWS THE PERCEPTION OF RETAILERS /DISTRIBUTORS TOWARDS THE
COCA-COLA’S DISTRIBUTIORS TOWARSD THE COCA-COLA’S DISTRIBUTION
CHANNEL

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INTERPRETATION:
Here area of concern that how company can make happy those respondent who
are thinking that Coca-Cola have worst/bad Distribution channel and how can
company develop good distribution channel the perception of retailers and
distributors.
Excellent
Good
Bad
Worst

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ANALYSIS AND REVIEW
 Some retails are unable to get the service which is provided by the
company.
 There are some retailers are not happy with services provided by the
distribution and the company.
 There is a gap between the retailers and the company
 Distributors are not satisfied with the services like margins product
availability, credit facility.
 Customers prefer the taste of Thumps Up more than the Pepsi Coo’s
product.
 Most of the time desired products are not available or not chilled due to
unavailability of visi coolers.
 In most of the mix outlet company has not provides its Visi cooler, so it is
becoming the major cause for not getting fulfill of the demand. Because
retailers are promoting that brands to the customer which company is
satisfying them more in terms of Visi Cooler, Schemes, relationships etc…
 Retailers are not happy with the MDC (Marketing Development
Coordinator) of Coca-Cola. Retailers are saying that what they promise, do
not fulfill that.
 Marinating good relationship with the retailers as well distributors channel
and policy.
 Time concern is very important in good distribution channel, it means
providing products at retailers door within a time.
 Company should provide better facility of logistics because without logistic
any company cannot maintain good distribution strategies.

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Chapter -6
CONCLUSION & SUGGESTION

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CONCLUSION
After analyzing all the aspect of the data available and giving some important
recommendations a suitable conclusion which should be derived for the study.
However, before starting the conclusion part, the objectives of research must be
kept in mind so that we can arrive at a befitting conclusion for the research
problem. The primary objective of this research was to know distribution channel
Strategy of Coca-Cola and to know the important of distribution channel strategy
in positioning of the products.
The data collected provided a sound base for understanding the overall
organizational set up of Coca-Cola in India. By analyzing the data the literature
review, following conclusion was inferred: The Sales and Distribution Network of
Coca-Cola India had the first mover advantages when it entered the market and it
capitalized on that advantages to grab the market. Franchises based operation
combined with the company’s operations ads strength to the overall presence of
the company in the market. Franchises are required to report to the company at
specific time intervals. The Advertising Campaigns are conceived, implemented by
the Coca-Cola and Franchises has no say in that.
It is very important to develop good relationship with retailers by providing them
better services and schemes. Maintaining the good relationship with the
distributors is very important for the company because they are the main part of
the distribution channel.

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SUGGESTION
This is one of the most important and most difficult parts of the study.
I arrived at certain recommendation are as follow:
 There should be and correct feedback from the retailers on the
performance of salesman. This will help improve their efficiency and
accountability. Moreover, this will also help in reducing the confusing that
the retailers have at time because the salesman does not explain the
schemes properly.
 As already mentioned V.C. Coolers are a major reason of dissatisfaction
among retailers. The periodical maintenance check of V.C. coolers is done
at three months. This should be done at an interval of 45 days instead of
the current practice of 90 days.
 Company should adopt aggressive marketing strategy that it could reach
each and every place.
 Company should have better logistics facility for making reach the product
at retailer’s door at a right time.
 Marketing Development Coordinator / Marketing / Sales Executive of the
company must focus more for making better relationship with retailers.
 Company should provide visi cooler to every retailers. Because who is
having visi cooler of which company they are promoting the same brand to
the consumer.
 Company should more focus on youth of the country because youths more
prefer the soft drinks.
 Company should focus on the consumers taste and preferences and launch
new product according to the consumer taste and need.

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Appendices
QUESTIONNAIRE
Name of the shop/Outlet:-……………………………………………………………………………………..
Address /location:-………………………………………………………………………………………………..
01.Coca-Cola have good distributions channel?
a. Strongly agree b. Agree c. Can’t Say
d. Strongly disagree e. Disagree
02. Distribution channel has an important role in positioning of the product?
03. Are you being provided the V.C coolers by the company?
a. Yes b. No
04.Coca-Cola has good relationship with the distributors /retailers?
05. Perception of retailers/distributors towards the Coca-Cola’s Distribution
Channel?
a. Excellent b. good c. bad
d. disagree

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06.How much time, Company takes to makes reach the products at retailer
shop?
a. one day b.Three day c. One week
d. One month
07. If better scheme is given then replace with coke?
08. Are you having logistics facility of company or own?
a. Own b. Company
09. Does Logistic Facility affects the Distribution Channel?
d. Strongly disagree
10. Perception of retailers/distributors towards the Coca-Cola Distribution
channel if V.C coolers provided by the company?
a. Excellent b. Good c. Bad d. Worst
11. Coca-Cola provides good services to the distributors/retailers?
d. Disagree e. Strongly disagree
12. Which brand’s soft drinking you usually sale?

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a. coke b. Pepsi Co c. others
13. Do you get easily your demanded brand in the market?
a. yes b. No
14. Why you prefer this brand?
a. Availability b. advertisement c. Taste
d. Others
15. Any other suggestion of Coca-Cola
………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………

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BIBLIOGRAPHY
BOOKS:
 Marketing Management –Philip Kotler
 Marketing –Philips & Duncan
 Basic Marketing – Condiff & Still
NEWS PAPERS:
 The Times of India
 The Economics Times
 Hindustan Times
 Business Today (January edition)
WEBSITES:
 www.google .co. In
 www.coca-colaindia.co.in
 www.scribd.in

MD SARTAJ ALAM

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