This document is a project report on the sales and distribution management of Coca Cola in India. It provides background on Coca Cola's history starting in 1886, its entry into India in 1993, and current operations in India. The Coca Cola system in India includes Coca Cola India Pvt Ltd, a company owned bottling entity, 13 licensed bottling partners, over 7,000 distributors and 2.2 million retailers across India. It discusses Coca Cola's products, promotional strategies, distribution channels, pricing, recruitment, training, warehousing, and competitors in India such as PepsiCo and Parle Agro.
Marketing Strategies of Coca-Cola India | MBAtiousaneesh p
Coca-Cola was the 1st international soft drinks brand to enter India in early 1970’s. Indian market was dominated by domestic brands, with Limca being the largest selling brand. Cola was the largest selling flavor with market share of 40%, Lemon drinks 31% and orange drinks only 19%. Up till 1977, Coca-cola was the leading soft drink brand in India.But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable.
Coca-Cola got the permission to enter the country with a 100 per cent unit in India. On September 22, 1993, the company bought out the Parle brands. As an entry strategy, Coca-Cola India took over Parle Foods. With a fine and detailed distribution network in place, Coke was now ready to take on archrival over a period of time, Coca-Cola India also bought certain bottling units that earlier belonged to Parle or individual distributors.
Marketing Strategies of Coca-Cola India | MBAtiousaneesh p
Coca-Cola was the 1st international soft drinks brand to enter India in early 1970’s. Indian market was dominated by domestic brands, with Limca being the largest selling brand. Cola was the largest selling flavor with market share of 40%, Lemon drinks 31% and orange drinks only 19%. Up till 1977, Coca-cola was the leading soft drink brand in India.But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable.
Coca-Cola got the permission to enter the country with a 100 per cent unit in India. On September 22, 1993, the company bought out the Parle brands. As an entry strategy, Coca-Cola India took over Parle Foods. With a fine and detailed distribution network in place, Coke was now ready to take on archrival over a period of time, Coca-Cola India also bought certain bottling units that earlier belonged to Parle or individual distributors.
The project describes the sales and distribution network adopted by coca cola beverages in india. It mentions the problems which are faced by the company.
Coca Cola Financial Analysis Final Project for Financial Accounting, St. Thomas MBA program. Group projected included Leanna Privette, Robin Toal, and April Vassau.
The report is based on the STUDY OF OUTBOUND SUPPLY CHAIN AT COCA-COLA BEVERAGES. It discusses complete details of the supply chain management at coca-cola.
The project describes the sales and distribution network adopted by coca cola beverages in india. It mentions the problems which are faced by the company.
Coca Cola Financial Analysis Final Project for Financial Accounting, St. Thomas MBA program. Group projected included Leanna Privette, Robin Toal, and April Vassau.
The report is based on the STUDY OF OUTBOUND SUPPLY CHAIN AT COCA-COLA BEVERAGES. It discusses complete details of the supply chain management at coca-cola.
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Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains. He created a flavoured syrup, took it to his neighbourhood pharmacy, where it was mixed with carbonated water and deemed “excellent” by those who sampled it. Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca-Cola” as well as designing the trademarked, distinct script, still used today.
Prior to his death in 1888, just two years after creating what was to become the world’s #1-selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties, with the majority of the interest sold to Atlanta businessman, As a G. Candler. Under Mr. Candler’s leadership, distribution of Coca-Cola expanded to soda fountains beyond Atlanta. In 1894, impressed by the growing demand for Coca-Cola and the desire to make the beverage portable, Joseph Biedenharn installed bottling machinery in the rear of his Mississippi soda fountain, becoming the first to put Coca-Cola in bottles. Large scale bottling was made possible just five years later, when in 1899, three enterprising businessmen in Chattanooga, Tennessee secured exclusive rights to bottle and sell Coca-Cola. The three entrepreneurs purchased the bottling rights from As a Candler for just $1. Benjamin Thomas, Joseph Whitehead and John Lupton developed what became the Coca-Cola worldwide bottling system.
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project of hindustan coca cola beverages pvt. ltd copy
1. 1
A
Project Report
On
“Sales & Distribution Management of Coco Cola Company”
Project Guide:
Prof. Kruti Patel
Submitted By:
Sr. No. Name Roll No.
1. Krunal Bhisara 09
2. Vishal Jadav 32
3. Ashwin Jagodana 33
4. Nayan Pandya 70
Submitted To
S. K. Patel Institute of Management and Computer Studies
Sector 23, GH-6 Road,
Gandhinagar-382023
2. 2
TABLE OF CONTENT
Chap
No. Particular
Page
No.
TITLE PAGE I
TABLE OF CONTENT II
1 History of Coca Cola 1
1.1 Evaluation of Coca Cola Bottle 2
1.2 Coca Cola India 2
2 Organization Structure of The Coca Cola 4
2.1 Sales Organization Structure of Coca Cola 4
3 Products of Coca Cola 5
4 Promotional Strategy 9
4.1 Grocery 9
4.2 E & D-1 10
4.3 E & D-2 11
4.4 Convenience 12
4.5 Bus Stand/Highway 13
4.6 Single Screen Cinema 14
5 Distribution Channel 15
5.1 Distribution Pull Strategy 15
5.2 Distribution Push Strategy 16
5.3 Distribution Intensity 16
5.4 Level of Distribution 16
6 Pricing Policy of The Coca Cola 18
6.1 Pricing Strategy of The Coca Cola 18
6.2 Price of Different Bottle 18
6.3 Pricing Strategy 18
6.4 Promotional Pricing Policy 19
6.5 Market Penetration Pricing Policy 19
7 Forecasting Method of The Coca Cola Company 19
8 Market Share of Coca Cola’s & Pepsi’s Brand 20
9 Market Segmentation Model of Coca Cola 21
10 Selling Process of Coca Cola 22
11 Basic Selling Style in Coca Cola 24
12 12.1 Recruitment 25
12.1.1 Recruitment Policy 25
12.1.2 Recruitment Objective 25
12.1.3 Recruitment Principle 25
12.2 Training 26
12.2.1 Coca Cola Strongly Believe 26
12.2.2 Steps on Training Programme 26
13 Warehousing & Transport Policy 27
13.1 Corporate Logistic of Coca Cola 27
14 Coca Cola Double Sales Force in India 28
3. 3
14.1 Coca Cola Drinks To Its Future Success with Sales Force 29
15 Terms & Condition 30
15.1 Purchase 30
15.2 Payment 30
16 Competitor’s Promotion Strategy 31
16.1 PepsiCo India 31
16.2 Parle Agro 32
REFERNCES 33
4. 4
1.1 History of Coca Cola
Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda
fountains. He created a flavoured syrup, took it to his neighbourhood pharmacy, where it was
mixed with carbonated water and deemed "excellent" by those who sampled it. Dr.
Pemberton's partner and bookkeeper, Frank M. Robinson, is credited with naming the
beverage "Coca-Cola" as well as designing the trademarked, distinct script, still used today.
Did you know? ………..The first servings of Coca-Cola were sold for 5 cents per glass.
During the first year, sales averaged a modest nine servings per day in Atlanta. Today,
daily servings of Coca-Cola beverages are estimated at 1.8 billion globally.
Prior to Dr. John S .deathPemberton’sin1888,justtwoyearsafter creating what was to become
the world's 1-selling sparkling beverage, Dr. Pemberton sold portions of his business to
various parties, with the majority of the interest sold to Atlanta businessman, Asa G.
Candler. Under Mr. Candler's leadership, distribution of Coca-Cola expanded to soda
fountains beyond Atlanta. In 1894, impressed by the growing demand for Coca-Cola and the
desire to make the beverage portable, Joseph Biedenharn installed bottling machinery in the
rear of his Mississippi soda fountain, becoming the first to put Coca-Cola in bottles. Large
scale bottling was made possible just five years later, when in 1899, three enterprising
businessmen in Chattanooga, Tennessee secured exclusive rights to bottle and sell Coca-
Cola. The three entrepreneurs purchased the bottling rights from As a Candler for just $1.
Benjamin Thomas, Joseph Whitehead and John Lupton developed what became the Coca-
Cola worldwide bottling system.
Among the biggest challenges for early bottlers, were imitations of the beverage by
competitors coupled with a lack of packaging consistency among the 1,000 bottling plants at
the time. The bottlers agreed that a distinctive beverage needed a standard and distinctive
bottle, and in 1916, the bottlers approved the unique contour bottle. The new Coca-Cola
bottle was so distinctive it could be recognized in the dark and it effectively set the brand
apart from competition. The contoured Coca-Cola bottle was trademarked in 1977.
1.1 Evolution of the Coca-Cola Bottle
The 1980s featured such memorable slogans as "Coke is It!", "Catch the Wave"
and "Can't Beat the Feeling". In 1993, Coca-Cola experimented with computer
animation, and the popular "Always Coca-Cola" campaign was launched in a
series of ads featuring animated polar bears. Each animated ad in the "Always
Coca-Cola" series took 12 weeks to produce from beginning to end. The bears
were, and still are, a huge hit with consumers because of their embodiment of
characteristics like innocence, mischief and fun. A favourite feature at the
World of Coca-Cola is the ability to have your photo taken with the beloved 7'
tall Coca-Cola Polar Bear.
5. 5
Did you know? One of the most famous advertising slogans in Coca-Cola history "The
Pause That Refreshes" first appeared in the Saturday Evening Post in 1929. The theme
of pausing with Coca-Cola refreshment is still echoed in today's marketing.
In 2009, the "Open Happiness" campaign was unveiled globally. The central message of
"Open Happiness" is an invitation to billions around the world to pause, refresh with a Coca-
Cola, and continue to enjoy one of life's simple pleasures. The "Open Happiness" message
was seen in stores, on billboards, in TV spots and printed advertising along with digital and
music components -- including a single featuring Janelle Monae covering the 1980 song,
"Are You Getting Enough Happiness?" The happiness theme continued with "Open the
Games. Open Happiness" featured during the 2010 Winter Olympic Games in Vancouver,
followed by a 2010 social media extension, "Expedition 206" -- an initiative whereby three
happiness ambassadors travel to 206 countries in 365 days with one mission: determining
what makes people happy. The inspirational year-long journey is being recorded and
communicated via blog posts, tweets, videos and pictures.
1.2
The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola
India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian
economy to foreign investments in 1991. Since then its operations have grown rapidly
through a model that supports bottling operations, both company owned as well as locally
owned and includes over 7,000 Indian distributors and more than 2.2 million retailers. Today,
their brands are the leading brands in most beverage segments. The Coca-Cola Company's
brands in India include Coca-Cola, Fanta Orange, Limca, Sprite, Thums Up, Burn, Kinley,
Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and the Georgia Gold range
of teas and coffees and Vitingo (a beverage fortified with micro-nutrients).
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 comprising of their 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 their beverages available to
consumers across India.
6. 6
The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-
entry into India. The company will be investing another USD 5 Billion till the year 2020.
7. 7
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. They strive to
ensure that their work environment is safe and inclusive and that there are plentiful
opportunities for their 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, their 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, Industrial and
agricultural products. Their operations also lead to incremental growth for enterprises
engaged in post-production activities like merchandising, marketing and sales. In addition,
they share best practices and technological advancements with their 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. Their basic
proposition entails that their Company's business should refresh the market; enrich the
workplace; protect and preserve the environment; and strengthen the community. They
leverage their unique strengths to actively support and respond to local needs -- be it the need
for education, health, water or nutrition. They have used our distribution network for disaster
relief, their marketing prowess to raise awareness on issues such as PET recycling, and their
presence in communities to improve access to education and potable water. The Coca-Cola
India Foundation is now taking forward in the community at large, projects and programs of
social relevance to carry forward the message of inclusive growth and development.
8. 2. Organizational Structure of The Coca Cola
2.1 Sales Organization Structure of Coca Cola
AGM
Plant
Manager
Route to
Market
Human
Resource
Manager
Finance
Manager
General Sales
Manager
Area Sales
Manager
Sales
Executive
Market
Devloper
Distributors
and Salesmen
Channel
Manager
Marketing
Key
Accounts
Area
Capability
Manager
Sales Trainers
9. 9
3. Products of Coca Cola
Coca-cola
Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now
become the flagship brand of largest manufacturer, distributor of non alcoholic beverages in
the world.
In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated its
departure. Coca cola has made its return to the country in 1993.and made significant
investment to ensure that the beverage is available to more and more people in remote as well
as inaccessible parts of the world.
Coca cola returned to India in 1993 and over the past ten years has captured the imagination
of the nation, building strong association with cricket, the thriving cinema industry, music
etc. coca cola has been very strongly associated with cricket, sponsoring the world cup
in1996. In 2002, coca cola launched the campaign was available for just Rs,5 in the country.
Diet Coke
Diet Coke, called Coca-Cola Light in some countries, is a sugar-free soft drink produced
and distributed by The Coca-Cola Company. 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
product quickly overtook the soft drink Tab in sales. Diet Coke was sweetened with
aspartame after the sweetener became available in the United States in 1983 to save money,
this was originally in a blend with saccharin.
10. 10
Thums up
Thums Up is a brand of cola in India. The logo is a red thumbs up. It was introduced in 1977
to offset the expulsion of The Coca-Cola Company from India. The brand was later bought
by Coca-Cola who re-launched it in order to compete against Pepsi.
As of February 2012, Thums Up is the leader in the cola segment in India, commanding
approximately 42% market share and an overall 15% market share in the Indian aerated
waters market.
Sprite
Worldwide sprite ranked as no.4 soft drink and is sold in more than 190 countries In India,
sprite was launched in year 1999 and today it has grown to be one of the fastest growing soft
drinks, leading clear lime category.
Limca
Born in 1971, Limca has been the original thirst choice, of millions of consumers for over
three decades. The brand has been displaying healthy volume growing year on year and limca
continues to be leading flavouring soft drinks in the country. Dive into the zingy refreshment
of limca and walk away a new person.
Fanta
11. 11
Fanta entered the Indian market in year 1996 under the coca cola brand .over the years, Fanta
has occupied a strong market place and is i vibrant colour, tempting taste and tingling
bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge
in the moment.
Maaza
Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza
currently dominates the fruit drink category. Over the years, maaza has become synonymous
with mango.
Kinley Soda Kinley Water
Kinley Soda launched in 2002 In India. Today this is the number one national soda brand.
Kinley water comes with the assurance of safety from The Coca-Cola Company. That is why
company introduced Kinley with reverse –osmosis along with the latest technology to ensure
purity of our product. Because company believe that right to pure, safe drinking water is
fundamental.
12. 12
Minute maid Pulpy Minute maid Nimbu Fresh
The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. They branded it Minute Maid, a name connoting
the convenience and the ease of preparation (In a minute).
Minute maid Nimbu Fresh launched first in South of India in January 2010, Minute Maid
Nimbu Fresh, started refreshing the whole of India by April 2010.
13. 13
4. Promotional Strategies
Product Promotional Strategy by Coca-Cola Company to achieve 2020 vision
Promotional strategy is the function of informing, persuading, and influencing a consumer
decision. Company use the promotion to expand their market & achieve the 2020 vision
effectively, another objective of promotional strategy is providing information, differentiating
the product & increasing sales.
According to the channel type of the company, they decide the some promotional strategy for
each kind of channel.
4.1 Grocery
As a part of the providing information to the customer & Persuasive advertising of the coca-
cola products, company define this modem of grocery outlet, which include the Shop front
signage/GSB(Drinking Shot/ OBM Communications), Flange Outside the shop, 3 Tier rack,
Shelf Display, Visible cooler in prime position, Price Communication & Road Standee.
14. 14
4.2 E&D-1
As a part of the providing information to the customer & Persuasive advertising of the coca-
cola products, company define this modem of E&D-1 type outlet, which include the Shop
front signage/GSB(Drinking Shot/ OBM Communications), Flange Outside the shop, Shelf
Display, Visible cooler in prime position, Price Communication & Road Standee.
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4.3 E&D-2
As a part of the providing information to the customer & Persuasive advertising of the coca-
cola products, company define this modem of E&D-2 type outlet, which include the Shop
front signage/GSB(Drinking Shot/ OBM Communications), Flange Outside the shop, Visible
cooler in prime position, Price Communication, Branded Manu Card, Menu Board, Combo
Communication & Road Standee.
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4.4 Convenience
As a part of the providing information to the customer & Persuasive advertising of the coca-
cola products, company define this modem of Convenience outlet, which include the Shop
front signage/DPS, Flange Outside the shop, Shelf Display, Visible cooler in prime position,
Price Communication.
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4.5 Bus Stand/ Highway
As a part of the providing information to the customer & Persuasive advertising of the coca-
cola products, company define this modem of Bus stand/ Highway outlet, which include the
Shop front signage/DPS, Flange Outside the shop, Shelf Display, Visible cooler in prime
position, Price Communication.
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4.6 Single Screen Cinema
As a part of the providing information to the customer & Persuasive advertising of the coca-
cola products, company define this modem of Single Screen Cinema outlet, which include the
Combo Shot with Food association, Branded Menu Board, Visible cooler in prime position,
Price Communication.
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5.2 Distribution Push Strategy
5.3 Distribution Intensity
Product distribution intensity refers to the scale of the distribution network as well as the
appropriate selection of location. Common questions to be asked include: How many retailers
in a particular market should be included in the distribution network? How many
wholesalers?
5.4 Levels Of Distribution Intensity
In intensive distribution, a producer's products are stocked in the majority of outlets. The
manufacturer attempts to get as many intermediaries of a particular type as possible to carry
the product. This strategy is common for basic supplies, magazines, soft drink beverages, and
snack foods . It provides for increased sales volume, wider consumer recognition, and
considerable impulse purchasing. Low price, low margin, and small order sizes often result
from this strategy. As a drawback, it can be extremely difficult to stimulate and control the
large number of intermediaries.
21. 21
In selective distribution, the producer relies on a few intermediaries to carry their product.
The exact number of outlets in any given market is dependent upon market potential, density
of population, dispersion of sales, and the distribution policies of competitors. This strategy is
commonly observed for more specialized goods that are carried through specialist dealers,
such as brands of craft tools or large appliances . It contains some of the strengths and
weaknesses of the other two strategies; however, it is difficult to determine the optimal
number of intermediaries in each market.
In exclusive distribution, the producer selects only very few intermediaries. Exclusive
distribution is often characterized by a deal where the reseller carries only that producer's
products to the exclusion of all others. This creates high dealer loyalty and considerable sales
support. Success of the product is dependent upon the ability of a single intermediary.
Therefore, it provides greater control but limits potential sales volume.
The choice of distribution intensity is extremely critical, because it is an important part of the
firm's overall marketing strategy. Not only does it provide convenience and availability to
consumers, it also increases their brand preference and loyalty. For instance, a company such
as Coca-Cola has achieved high levels of success through their intensive distribution
Strategy.
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6. Pricing Policies of the coca cola
6.1 PRICING STRATEGY OF COCA COLA
The amount of money charged for a product or service, or sum of the values that
Consumers exchange for the benefits of having or using the product or services. As
price gives us the profit so this P is very important for business price of product
should be that which gives maximum benefit to the company and which gives
maximum satisfaction to the customer.
Following factors Coca Cola kept in mind while determining the pricing strategy.
Price should be set according to the product demand of public.
Price should be that which gives the company maximum revenue.
Price should not be too low or too high than the price competitor is charging
from their customers otherwise nobody will buy your product.
Price must be keeping the view of your target market.
The price of Coca Cola, despite being market leader is the same as that of its
competitor.
Sometimes, Pepsi places its customers into some psychological pricing strategies by
reducing a high priced bottle and consumers think that they save a lot of money from
this.
6.2 PRICES OF DIFFERENT BOTTLES:
Size of Coca Cola Price of Coca Cola (RS.)
Regular bottle 12
Non returnable or disposable bottle 30
1.25 liter bottle 45
2.25 liter bottle 78
Coca Cola can 30
6.3 PRICING STRATEGIES:
Coca Cola has intense competition with Pepsi so its pricing can’t exceed too much nor
decrease too much as compared to the price of Pepsi Cola. If price of the Coca Cola
exceed too much from the Pepsi then people will shift to the Pepsi Cola and on the
other hand if the price of Coca Cola decreases people might get the impression that its
quality is also low.
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6.4 PROMOTIONAL PRICING POLICY
Coca Cola has offered promotional prices very frequently. Especially on some
occasion Coca Cola reduces its rates like in Ramadan Coca Cola reduces its rate unto
5 Rupees on 1.5 liter bottle.
6.5 MARKET PENETRATION PRICING POLICY
In an economy like that of Pakistan, consumers tend to switch towards a low priced
product. Coca Cola’s objective is to target every consumer of the country so Coca
Cola has to set its prices at such a level which no one can offer to its consumers. That
is why Coca Cola charges the same prices as are being charged by its competitors.
Otherwise, consumers may go for Pepsi Cola in case of availability of Coca Cola at
relatively high price.
7. Forecasting Method of Coca Cola Company
The decisions should not be segregated by functional area, as they influence each
other and are best made jointly. For example, Coca-cola considers the demand
forecast over the coming quarter and decides on the timing of various promotions. The
promotion information is then used to update the demand forecast. Based on this
forecast, Coca-Cola will decide on a production plan for the quarter.
This plan may require additional investment, hiring, or perhaps subcontracting of
production. Coke will make these decisions based on the production plan and existing
capacity, and it must make them all in advance of actual production.
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9 Market Segmentation Model of Coca- Cola Company
Company segments their market in two lines:
1. Market Class
2. Channel cluster
Channel Cluster (Type):
Grocery: Outlets primarily engaged in retailing of food & various items. It include
Grocers (Outlets dealing mainly in grains, provisions, edible oil, vanaspati etc) and
General Stores(Outlets selling items of day-to-day requirements & stocking a variety of
branded products).
E&D-1: Outlets selling items to eat which are being consumed primary standing in the
outlet or being taken away for Future Consumption. Does not a place to sit. It includes
Bakery/Sweet Shops/ Pakora-Bhaji Selling outlet/ Juice Centers/ Soft drinks Shopes/ Ice
Cream Parlours etc.
E&D-2: Outlets selling items to eat which are being cooked/ made within outlet with
possibility of consuming those products within the outlet. The outlet should have a place
to sit. It includes Sit down Restaurants/ Bars/ Dhabas/ Cafes etc.
Convenience: Includes outlets which are small stores, generally accessible locally. Those
are often located alongside busy roads. It includes Chemists/ STD Booths/ Pan-beedi
Shops etc. Semi-Temporary Kiosk located near the road side selling cigarettes, beverages
and other confectionary items.
Bus Stand/ Highway: Outlets or stalls on Bus Stands or Highways.
Single Screen Cinema: Outlets inside Single Cinema campus selling items like Popcorn,
Samosa, Burger, Chips etc
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10 Selling Process of Coca Cola
Coca-cola Company & their Brands comes in the FMCG (Fast Moving Consumer Goods)
sector, so the consumption of the softdrinks & juices are moving fastly in the consumer field.
Company has 3 COBO(Coca- Cola owned Botting Operations) Regions & 27 COBO Units
under HCCBPL & 1 FOBO (Frenchisee owned Botting Operations) Region & 12 FOBO
Units under CCI.
Company has the number of the distributors according the geographical area and assign the
Ares Sales Managers (ASM) to that specific area, who is responsible for the sales activities in
that area, under ASM their is Sales Team Leader (STL), Market Developer (MD) &
Capability Executive(CE) for all channel type (Convenience, E&D, Grocery) outlets of that area.
Steps in the Sales Process
Step 1: Prospecting
In prospecting, Market Developer identifies potential customers. They may come from many
sources, such as previous customers, new opening outlet of different channel type,
Competitors Outlets of market.
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Step 2: The Approach
Market Developer should carefully prepare his/her approach to potential customers. All
available information about prospects should be collected and analyzed by the CE & STL
specially when company provide Cooler to that outlet owner for selling of the products of the
company.
Step 3: The Presentation
The presentation is the stage at which the sales person transmits the promotional message.
The usual method is to describe the discount rates on different products (for example: we had
to focus on sales of 500ml kinley water & 400 ml coca-cola, so we offer the customer that
he/she get 3 water bottle on purchasing of 1 case{24 bottle} of kinley water & additional
discount on purchasing of 1 case of 400ml coca-cola ), margin on products to the outlet
owner, and demand of the consumer which come at his/her outlet for purchasing the products
which company offer.
Step 4: The Demonstration
In promoting new pack of 400 ml coca-cola & 500ml kinley water, the demonstration is a
critical step in the sales process. A demonstration allows the prospect to become involved in
the presentation. For that we had the sample bottle of both pack & show the potential
customer & convince him/her for purchase.
Step 5: Handling Objections.
During the sales of these two products we have to face many objections from the prospect
like small pack of water bottle may not accept by the consumer, less margin as compare to
competitor product, him/her mindset for small pack of coca-cola. Handling of this objections
by us convince him/her for purchase the products.
Step 6: The closing
The time at which we actually asks the prospect to buy the product. We watch for signals that
the prospect is ready to buy the product & book his/her order.
Step 7: The Follow-UP
After-sale activities are very important in determining whether a customer will buy again
later, this is called secondary outlet of that product. After the prospect agrees to buy, the
salesperson should complete the order processing quickly and efficiently.
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11 Basic Selling Style in Coca Cola
1. Order Processing
2. Creative Selling
3. Missionary Selling
Order Processing
The task of order processing involves the receipt and handling of an order. Needs are
identified and pointed out to the customer, and the order is processed. The handling of orders
is especially important in satisfying customer needs. Market Developer & Sales Person of the
Distributor are examples of order processors. They check a store's stock, report the inventory
level to the store manager, and complete the sale.
Creative Selling
In creative selling, a convincing type of promotional presentation. Creative selling is used
when the benefit of a product is readily apparent and its purchase is being based on a careful
analysis of alternatives. In new-product (400ml coke & 500 ml kinley water) selling sales
people need to be very creative if initial orders are to be secured.
Missionary Selling
An indirect form of selling in which the representative markets the goodwill of a company or
provides technical or operational assistance to the customer is called missionary selling. In
Coca-Cola Company provide the cooler for selling of their products & service of the cooler in
any circumstances also provide by company.
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12.1 RECRUITMENT
12.1.1 Recruitment Policy:
Employees are most important assets of the company. It is necessary that this asset must be
properly selected, placed and retained. Recruitment is therefore, endeavor to select right
person for the right job at the right time. The “recruitment policy” involves a commitment by
the employer to find and employ the best qualified persons for each job, to retain the best and
the most promosing of these hired, to offer opportunities for life time working careers, and
provide programmes and facilities for personnel growth on the job. The new employee
therefore should match the requirements and also should have the potentials to grow in the
organization.
12.1.2 Recruitment Objective:
Selection of the best qualified person.
Selection of physically, mentally & temperamentally competent employees to achieve
company’s objective.
12.1.3 Recruitment Principles:
1. Selection at all levels will be a merit.
2. Every effort will be made to promote growth from within.
3. To create opportunities for employees in new business.
4. Normally relatives of existing employees should not be offered employment.
5. If an employee gets married to another at the same location, then one of them is liable
to change of assignment to avoid an conflict of interest.
6. Locals are to be given preference.
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12.2 TRAINING
12.2.1 COCA-COLA Strongly believes:
Every person is unique and has unlimited potential.
Potential can be harness to benefit organization and individual.
Every person has weakness and limitation, but can be altered to “strength” through
training.
12.2.2 Steps in Training Programme:
Training programmes is a costly affair, and time consuming process. Therefore, they need to
be drafted carefully. Coca-cola undertakes some specific steps in training programmes which
can br summarized as follows:
1. Task analysis / identification of training needs.
2. Designing of training programme.
3. Preparing lesson plans.
4. Imparting training.
5. Validation (knowledge and performance test).
6. On the job training.
Thus coca-cola has its own effective training procedure for imparting to its employees.
Various training techniques like class room training, interactive video training, lecture,
conference, programme instruction and on the jog training are used at coa-cola.
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13. Warehousing and Transport Policy
13.1 Corporate logistic of coca-cola
All distributor center and product warehouse are required to follow product storage:
1. Store product in shade, away from sunlight.
2. Store and handle the product so as to maintain its integrity.
3. Keep full goods in clean, ventilated, rodent and vermin free warehouse.
4. Spraying of any pesticides on product or pallets is strictly prohibited.
5. Always follow ‘FIRST EXPIRED FIRST OUT’ (F.E.F.O) and ‘Dispatch – out –
date (D.O.D). In plant Dispatch-out-date (IDOD) while storing and dispatching
the product.
6. Dispatch and receive finished product only in clean and vermin free vehicle, rack
vehicle to be loaded and covered in a manner to provide P.E.T products maximum
shade.
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14. Coca-Cola to double sales force in India to 14,000 over 5 years
Coca-Cola plans to double its sales force in India from the existing 7,000 over the next five
years as the Atlanta-headquartered company gears up for a massive business expansion in the
country.
The cola giant last year announced plans to invest $5 billion (Rs 30,700 crore) by 2020 to add
up to its existing scale, manufacturing and distribution capability in India.
“Our investments in India will continue as we see a bigger potential in here…we will double
the size of our sales force by hiring thousands over the next five to eight years,” said Stevens
J Sainte-Rose, senior V-P HR, Coca-Cola International.
At present, Coca-Cola employs about 7,000 sales professionals across India and the company
plans to add the same number of people over the next five years. In Coke’s parlance these
sales people are known as “feet on street”, who interact with retailers and traders, thereby
generating business insights, besides pushing the company’s beverage and cola brands.
Apart from sales staff, Coca-Cola India and its bottling partners directly employ around
25,000 people. Coke also supports an additional 0.15 million people through indirect
employment. Headcounts for these sections are not expected to change.
Coca-Cola started its India business two decades ago and its beverage products include Coke,
Thums Up, Sprite, Mazaa and Fanta among others. It operates 58 manufacturing plants and
India is the seventh-largest market for the firm.
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14.1 Coca-Cola drinks to its future success with Sales force
HCCBPL discovered its field sales representatives were spending too much time on
administrative tasks – rather than spending time with the customers and selling their products
– the company embarked on a journey that would transform not only its sales operation but
every area of the business.
HCCBPL uses Sales force across multiple geographies and multiple business functions. From
the call centre agent to the service technician and the sales representative, Sales force
connects people and information to deliver a better customer experience.
Making the most of mobile
HCCBPL has big ambitions for the future. As well as being the best beverage sales and
customer service company, it wants to grow its operating income between six and eight
percent in the long-term.
With the support of a new mobile app developed on Service Cloud and the Sales force
Platform, HCCBPL has been able to accelerate a new revenue stream. As Cetin explains:
“The app makes it easier and quicker for service technicians to retrieve their work schedules
and log activity updates in real time, which means they can respond to more customer
requests in the same timeframe. This is a crucial capability as HCCBPL expands its
Equipment Service offering to a broader customer base.”
The company also developed an app that simplifies the account creation and equipment
installation process for new customers. The app took just five months to develop and less
than a year to deploy across multiple territories. “As part of a pilot, we reduced the lead time
for installing new equipment by 50 percent and the on-boarding process for new customers
by 66 percent,” confirms Cetin.
Opening up the information flow
A robust platform that accelerates the development and deployment cycle is key to helping
HCCBPL achieve its vision for a multi-contact, customer-focused approach. As Cetin
affirms: “With Sales force, we’ve been able to develop very complex solutions in less than
four months and deploy them across multiple geographies in under a year.”
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15. Terms and Condition
15.1 Purchase
a) Upon receipt by Buyer of an express acceptance by Seller, or upon Seller’s
commencement of work on the goods subject to this Purchase Order (“Order”), or upon
shipment of such goods, or Seller’s commencement of installation of services, whichever
occurs first, this Order shall become a contract with the terms and conditions herein set forth.
(b) Acceptance of this Order is expressly limited to the terms and conditions herein contained
on both sides hereof. Buyer s hall not be bound by any provisions in Seller’s order
acknowledgement or acceptance forms or other documents (including counter offers) which
propose any terms or conditions in addition to or differing with the terms and conditions set
forth herein, and any such terms and conditions of Seller and any other modification to this
Order shall have no force or effect and shall not constitute any part of the terms and
conditions of purchase or lease, except to the extent separately and specifically agreed to in
writing by the Buyer. Buyer’s failure to object to provisions contained in Seller’s documents
shall not be deemed a waiver of the terms and conditions set forth herein, which shall
constitute the entire agreement between the parties.
(c) No amendment, deletion, supplement or change in terms and conditions contained herein
shall be binding on Buyer unless approved in writing by the Buyer.
15.2 Payment
(a) Invoices will normally be paid according to discount terms, or if no discount is offered,
within thirty (30) to sixty (60) days after receipt and acceptance of the goods or completion
and acceptance of services or according to other agreed upon payment terms. At least five (5)
working days are requested to process payments from the date of receipt of invoices
irrespective of when goods and services are received. Unless specified otherwise, discount
periods will be computed from either the date of delivery plus three days’ allowance for
inspection or the date of receipt of correct invoices, prepared in accordance with the terms of
this Order, whichever date is later. Payment shall not be construed to limit Buyer’s right of
inspection, acceptance, set-off, or any other right.
(b) Seller warrants that the payment terms offered Buyer are consistent with the payment
terms given by Seller to any other customer for goods or services of like grade and quality in
like quantities, and Seller agrees that if at any time during the pendency of this Order more
favorable payment terms are quoted to any other customer under similar conditions, said
more favorable payment terms shall be made available to Buyer. Seller agrees that any more
favorable payment terms for the goods or services covered by this Order subsequent to its
acceptance but prior to payment thereof will be applicable to this Order.
35. 35
16. Competitors
Pepsi, the flagship product of PepsiCo, The Coca-Cola Company's main rival in the soft drink
industry, is usually second to Coke in sales, and outsells Coca-Cola in some markets. RC
Cola, now owned by the Dr Pepper Snapple Group, the third largest soft drink manufacturer,
is also widely available.
Around the world, many local brands compete with Coke. In South and Central America
Kola Real, known as Big Cola in Mexico, is a growing competitor to Coca-Cola. On the
French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing
competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is available. In Peru,
Inca Kola outsells Coca-Cola, which led The Coca-Cola Company to purchase the brand in
1999. In Sweden, Julmust outsells Coca-Cola during the Christmas season.[83]
In Scotland,
the locally produced Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola
and Diet Coke began to outpace its sales.
In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up.
The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9%
market-share in India.[86]
Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola,
due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola are
competitors to Coca-Cola in the Middle East.
In Turkey, Cola Turka, in Iran and the Middle East, Zam Zam Cola and Parsi Cola, in some
parts of China, China Cola, in Slovenia, Cockta and the inexpensive Mercator Cola, sold only
in the country's biggest supermarket chain, Mercator, are some of the brand's competitors.
Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar, is a
serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on
Madeira.
16.1 Pepsico India
PepsiCo is a global food and beverage company that is ranked at Number 2 in the world
behind Coca-Cola. Its marketing strategy is mainly to work within the company,
“Performance with a Purpose” Strategy. Bring Customers in my promoting a product that
promotes a theory of making the world better- Smart Selling. And focusing on
Business Portfolio Analysis, where to sell their product- International Markets, making
products that fit in customers life style-Customer Relationships.
Smart Selling focusing on what PepsiCo has to offer. PepsiCo’s financial growths are fully
supported by the brands that they sell. PepsiCo’s newest initiative is creating and expanding
the “macro snack portfolio”. With the times changing PepsiCo and other soft drink
companies realized that when people go to have a snack they look for a drink as well, and
with consumers looking for the healthy option soda company’s like PepsiCo were losing
36. 36
customers. PepsiCo introduced the “Power of One” in which PepsiCo purchased the two
largest bottling groups, New York based Somers Pepsi Bottling Group (PBG) and
Minneapolis based Pepsi-Americas. This merge gave PepsiCo direct control over 80% of its
bottling network. Now the company can combine healthy snacks with their healthy drinks
and reap the benefits.
International Markets, producing and effective Diversification Analysis. The next step is to
be aware of the economic changes that face consumers, which put pressure on our company
when trying to sell our products. With this being a factor in our marketing and selling we
will continue to invest in developing and emerging markets, internationally. PepsiCo has
expanded the company into selling its products internationally and now sells its products in
over 200 countries.
And Lastly PepsiCo focuses on creating keeping customer relationships by giving the people
what they want. PepsiCo’s success depends on the way the company reacts to consumer
trend. With the trend of consumers reaching for healthier options, PepsiCo continues to
expand their Good-For-You portfolio. Focusing on Consumer trends, giving the people what
they are looking for.
16.2 Parle
Advertising - It was advertised mainly through press ads.
Communication spoke about the basic benefits of energy and nutrition.
In 1989 Parle-G released its “Dadaji” commercial which was a huge success and was
aired over a period of 6 years. The communication spoke about the basic benefits of
energy and nutrition.
The next level of communication associated the brand with the positive values of life like
honesty, sharing and caring. Just a few months back a reminder TV commercial was
launched for Parle-G where the product is being called ‘hindustan ki takat’..My
DocumentsPowerful Parle G Commercial. Hindustan ki Takat - Version II.flv
Recently Parle has started the use of celebrity in their advertisements.
Sales promotion - Every year it holds day fairs at branded venues where games and fun
events are organized for the employees of Parle and their families; where Parle products
are giveaway prizes.
Public relations - Parle has done the following for enhancing public.
In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan
that went on to become a huge success.
In the year 2002, a national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a
period of 6 months. The promo was all about fulfilling the dreams of children.
Parle Saraswati Vandana, one of its initiatives, is an inter-school contest based on the
Saraswati Puja celebrations. Since it started in 2002 it has seen a tremendous increase in
participating each year, with entries coming from schools of West Bengal.
Parle had introduced the novel promotion called Parle Golu Galata contest in 2005. (Golu
means Doll & Galata means Dhammal.)