Coca-Cola was created in 1886 in Atlanta, Georgia by John Pemberton. It is now the world's largest beverage company, recognized by 94% of the world's population. The report provides an overview of Coca-Cola's history and growth, including leaving and re-entering the Indian market. It also describes the company's operations in India through Hindustan Coca-Cola Beverages Private Limited, including manufacturing, distribution, products, and sales promotion strategies used.

1. OF
The world’s most recognized trademark
it is recognized by 94% of the world’s population
FOR
HINDUSTAN COCA -COLA BEVERAGES PVT.
LTD.
Visa kha pa ta nm.
U N D E R G UI DAN C E O F:
M r s . Ma d h u r i
( As s t . Pr o f e s s o r )
S UB MI T T E D B Y:
V e n ka t e s hw a r l u . N
MBA (2010-12)
B AB A I NS T I T UE O F T E CH NO L O G Y & S CI E NC E S
A C K NO WL E D GE ME NT
1

2. I would like to thank my Mr.DhanRajSinghBisht, CHANNEL
MARKETING EXECUTIVE, Coca-Cola India, without whom an internship
with, Hindustan Coca-Cola Beverages Private Limited (HCCBPL) would
not have been possible. I am grateful to him for having taken time of f
his busy schedule and spoken to the concerned person to get me this
internship. I express my gratitude to the Hindustan Coca -Cola
Beverages Private Limited (HCCBPL) for having given me an
opportunity to work with them and make the best out of my internsh ip.
I thank my guide, Mr.Suresh for having trained me and constantly
guided and supported me throughout the training period. My heartfelt
gratitude also goes out to the staff and employees at HCCBPL for
having co-operated with me and guided me throughout t he one and a
half months of my internship period. I thank my college, BABA
Institute of Technology science for having given me this opportunity to
put to practice, the theoretical knowledge that I imparted from the
program. I thank the internship co -coordinator, Mrs.Madhuri
(Asst.Professor) for having guided and supported me through the
course of the internship. I take this opportunity to thank my parents
and friends who have been with me and offered emotional strength
and moral support.
2

3. DECELARATION
I Ve n k a t e s h wa r l u .N d e c l a r e t h a t t h i s p r o j e c t r e p o r t
titled “Sales Promotion” is an original work done
by me under the guidance of Mr s . M A D H UR I
( A S S T. P R OF ES S O R ) . I f u r t h e r d e c l a r e t h a t i t i s my
o r i g i n a l w o r k a s a p a r t o f my a c a d e mi c c o u r s e .
P L A CE : VI ZA G
DATE:
VENKATESHWARLU.N
3

4. E XE C UT I V E S UM M AR Y
Coca-Cola, the product that has given the world its best -known taste
was born in Atlanta, Georgia, on May 8, 1886. Coca -Cola Company is
the world‟s leading manufacturer, marketer and distributor of non -
alcoholic beverage concentrates and syrups, used to pr oduce nearly
400 beverage brands. It sells beverage concentrates and syrups to
bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. Coca -Cola was first introduced by John Syth
Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he
concocted caramel-colored syrup in a three-legged brass kettle in his
backyard. He first “distributed” the product by carrying it in a jug
down the street to Jacob‟s Pharmacy and customers bought the drink
for five cents at the soda fountain. Carbonated water was teamed with
the new syrup, whether by accident or otherwise, producing a drink
that was proclaimed “delicious and refreshing”, a theme that continues
to echo today wherever Coca -Cola is enjoyed. Coca-Cola originated as
a soda fountain beverage in 1886 selling for five cents a glass. Early
growth was impressive, but it was only when a strong bottling system
developed that Coca-Cola became the world -famous brand it is today.
Coca-Cola was the leading soft drink brand in Ind ia until 1977, when it
left rather than reveal its formula to the Government and reduce its
equity stake as required under the Foreign Regulation Act (FERA)
which governed the operations of foreign companies in India. In the
new liberalized and deregulated environment in 1993, Coca -Cola made
its re-entry into India through its 100% owned subsidiary, HCCBPL, the
Indian bottling arm of the Coca -Cola Company. The main objective of
this study lies in understanding the organization and studying and
understanding the consumers‟ perception and opinion about the
promotions offerd by the Coca -Cola Company. A retailer sampling
involving 200 outlets was conducted in a span of 10 days across major
areas in order to give the product s the required marketing push and to
recognize the prospective a reas and their opinion in order t o develop
4

5. and market the offers in a better way in the near future. The
methodology used in studying and understanding the perceived views
of consumers towards the sales & promotions was „SURVEYS ‟. The
findings of the activity have been drawn out in form of graphs and
suggestions have been offered there from.
5

6. T A BL E O F C O NT E NT S
CHAPTER 1: INTRODUCTION
1: INTRODUCTION……………………………………………….……09
1.1: A brief insight- The FMCG Industry in India……… ..………..10
1.2: A brief insight - The Beverage Industry in India………………13
Figure 1: Beverage In dustry in India…………..…………………….13
CHAPTER 2: THE COCA-COLA COMPANY
2.1: History…………………………………………………………………………..16
2.2: History of Bottling………………………………………………………..18
Figure 2 Contour bottle design ……………………………….……………19
2.3: The Coca-Cola Bottle over the Years ………………………………22
Figure 3: The Coca-Cola Bottle over the Years ………….………….22
2.4: Production…………………………………………….……………………….23
2.5 Brand Portfolio…………………………………….………………………….24
2.6: Manifesto for Growth……………….……………………………………28
2.6.1: Values………………………………………..…………………………………28
2.6.2: Mission…………………………….…………………………………………..28
2.6.3: Vision for Sustainable Growth……………………………………..29
Figure 4: Vision for Sustainable Growth………………..………………30
CHAPTER 3: HINDUSTAN COCA -COLA BEVERAGES PRIVATE
LIMITED
3.1: About the Company……………………………………………………….31
Figure 5: Location of COBO , FOBO and Contract packers…….33
3.2: Manifesto for Growth ……………….……………………….………..33
3.2.1:Values…………………………………………….……………….………….33
6

7. 3.2.2:Vision for Sustainable Growth ……………...………………….34
3.2.3:Mission………………………………………………………………..……..34
3.2.4: Quality Policy …..……………………….………………………..…..35
3.3: Organization Structu re of Coca-Cola India…………….…….36
Figure 6: Organization Stru cture of Coca-Cola India…….…….36
Figure 7: Organization Stru cture of Coca-Cola India…….…….37
3.4: Organization Struc ture of the Sales Departmentin HCCBPL.38
Figure 8: Organization Struc ture of the Sales Department……38
3.5: Manufacturing Unit of HCCBPL…………………..……………….…39
Figure 9: Chain followed from Manufacture to Distribution …39
3.6: Manufacturing process at HCCBPL……..………..……………..40
Figure 10: Manufacturing process………………………..…………………40
3.7: Business Plan model at HCCBPL…………….……….…………….42
Figure 11: Business Plan model at HCCBPL……….……………………42
3.8: Distribution Network……………..……………….…… ……………….43
3.8.1: Distribution Routes……….…………………….…………………….43
3.8.2: Distribution System…..…………………….…………………………44
3.8.3: Departments involved in the Distribution process.…….45
3.9: SWOT Analysis of HCCBPL……………………………..………………46
3.9.1: Strengths…………………….………………… ….……………………….46
3.9.2: Weaknesses……………….………………….……………………………47
3.9.3: Opportunities…………..………………….…………………………….48
3.9.4: Threats………………………………………….…………………………..49
3.10: Competitors to HCCBPL……………….………………………………50
CHAPTER 4:
PRODUCTS………………………………..……………….……………51
4.1: Packaging details…………………….…..…………...…………………55
7

8. CHAPTER 5: PROJECT:
5.1 SALES PROMOTION….………………………………………….…… 60
5.1.1: INTRODUCTION TO SALES PROMOTION ……………….60
5.1.2: Consumer sales promotion techniques ……….….…..62
5.2 Sales Promotion Strategies………………………………...…..64
5.3: Objective of the Study………..………………………………….65
CHAPTER 6: Methodology
6.1: Research Methodology..……….…………….……………….….66
6.2: Data Analysis……………………..……………………………………68
6.3: Findings……………………………………………………………………70
6.4: Suggestions…………..………..………………………………………81
CHAPTER 7:
CONCLUSION…………………………….…………………………...82
BIBILOGRAPHY……………………….….…………………………..83
DATA SOURCES………………………..……………………………… 83
APPENDIX……………………………….……………………………..84
8

9. C HA P T E R 1: I NT R O D U C T I O N
Coca-Cola, the product that has given the world its best -known taste
was born in Atlanta, Georgia, on May 8, 1886. Coca -Cola Company is
the world‟s leading manufacturer, marketer and distributor of non -
alcoholic beverage concentrates and syrups, used to pr oduce nearly
400 beverage brands. It sells beverage concentrates and syrups to
bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. The Company‟s beverage products comprises of
bottled and canned soft drinks as well as concentrates, syrups and
not-ready-to-drink powder products. In addition to this, it also
produces and markets sports drinks, tea and coffee. The Coca -Cola
Company began building its global network in the 1920s. Now
operating in more than 200 countries an d producing nearly 400 brands,
the Coca-Cola system has successfully applied a simple formula on a
global scale: “Provide a moment of refreshment for a small amount of
money- a billion times a day.”
The Coca-Cola Company and its network of bottlers compr ise the most
sophisticated and pervasive production and distribution system in the
world. More than anything, that system is dedicated to people working
long and hard to sell the products manufactured by the Company. This
unique worldwide system has made T he Coca-Cola Company the world‟s
premier soft-drink enterprise. From Boston to Beijing, from Montreal to
Moscow, Coca-Cola, more than any other consumer product, has
brought pleasure to thirsty consumers around the globe. For more than
115 years, Coca-Cola has created a special moment of pleasure for
hundreds of millions of people every day.
9

10. The Company aims at increasing shareowner value over time. It
accomplishes this by working with its business partners to deliver
satisfaction and value to consumers through a worldwide system of
superior brands and services, thus increasing brand equity on a global
basis. They aim at managing their business well with people who are
strongly committed to the Company values and culture and providing
an appropriately controlled environment, to meet business goals and
objectives. The associates of this Company jointly take responsibility
to ensure compliance with the framework of policies and protect the
Company‟s assets and resources whilst limiting business risks.
1 . 1: A BR I E F I N S I G HT - THE F MC G I ND US T R Y I N
I ND I A
Fast Moving Consumer Goods (FMCG), also known as Consumer
Packaged Goods (CPG) are products that have a quick turnover and
relatively low cost. Consumers generally put less thought into the
purchase of FMCG than they do for other products.
The Indian FMCG industry witnessed significant changes through the
1990s. Many players had been facing severe problems on account of
increased competition from small and regional players and from slow
growth across its various product categories. As a result, most of the
companies were forced to revamp their product, marketing,
distribution and customer service strategies to strengthen their
position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry
had changed significantly. With the liberalization and growth of the
Indian economy, the Indian customer witnessed an increasing exposure
to new domestic and foreign products through dif ferent media, such as
television and the Internet. Apart from this, social changes such as
10

11. increase in the number of nuclear families and the growing number of
working couples resulting in increased spending power also contributed
to the increase in the Indian consumers' personal consumption. The
realization of the customer's growing awareness and the need to meet
changing requirements and preferences on account of changing
lifestyles required the FMCG producing companies to formulate
customer-centric strategies. These changes had a positive impact,
leading to the rapid growth in the FMCG industry. Increased
availability of retail space, rapid urbanization, and qualified manpower
also boosted the growth of the organized retailing sector.
HLL led the way in revolutionizing the product, market, distribution
and service formats of the FMCG industry by focusing on rural
markets, direct distribution, creating new product, distribution and
service formats. The FMCG sector also received a boost by government
led initiatives in the 2003 budget such as the setting up of excise free
zones in various parts of the country that witnessed firms moving away
from outsourcing to manufacturing by investing in the zones.
Though the absolute profit made on FMCG products is re latively small,
they generally sell in large numbers and so the cumulative profit on
such products can be large. Unlike some industries, such as
automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to d ip. A person may put off
buying a car but he will not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner
irrespective of global market dip, because they generally satisfy rather
fundamental, as opposed to luxurious needs. The FMCG sector, which
is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 crores. The main contributor, making
up 32% of the sector, is the South Indian region. It is predicted that
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12. in the year 2010, the FMCG sector will be worth Rs.143000 crores. The
sector being one of the biggest sectors of the Indian Economy
provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular,
March)
The FMCG sector consists of the following categories:
Personal Care- Oral care, Hair care, Wash (Soaps),
Cosmetics and Toiletries, Deodorants and Perfumes, Paper products
(Tissues, Diapers, Sanitary products) and Shoe care; the major players
being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur
and Procter & Gamble.
Household Care- Fabric wash (Laundry soaps and synthetic
detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners),
Air fresheners, Insecticides and Mosquito repellants, Metal polish and
Furniture polish; the major players being; Hindustan Lever Limited,
Nirma and Ricket Colman.
Branded and Packaged foods and beverages - Health
beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits,
Breads, Cakes), Snack foods, Chocolates, Ice -creams, Tea, Coffee,
Processed fruits, Processed vegetables, Processed meat, Branded flour,
Bottled water, Branded rice, Branded sugar, Juices; the major players
being; Hindustan Lever Limited, Nestle, Coca -Cola, Cadbury, Pepsi and
Dabur
Spirits and Tobacco; the major players being; ITC,
Godfrey, Philips and UB
12

13. 1 . 2: BE V E R AG E I ND US T R Y IN I ND I A: A BR I E F
I N S I G HT
In India, beverages form an important part of the lives of people. It is
an industry, in which the players constantly innovate, in order to come
up with better products to gain more consumers and satisfy the
existing consumers.
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-
carbonated
Cola Non-Cola Non-Cola
FIGURE 1: BEVERAGE INDUSTRY IN INDIA
The beverage industry is vast and there various ways of segmenting it,
so as to cater the right product to the right person. The different ways
of segmenting it are as follows:
13

14. Alcoholic, non-alcoholic and sports beverages
Natural and Synthetic beverages
In-home consumption and out of home on premises
consumption.
Age wise segmentation i.e. beverages for kids, for adults
and for senior citizens
Segmentation based on the amount of consumption i.e. high
levels of consumption and low levels of consumption.
If the behavioral patterns of consumers in India are closely noticed, it
could be observed that consumers perceive beverages in two different
ways i.e. beverages are a luxu ry and that beverages have to be
consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the
beverage industry, it is important to address this issue so as to
encourage regular consumption as well as and to make the industry
more affordable.
Four strong strategic elements to increase consumption of the
products of the beverage industry in India are:
The quality and the consistency of beverages needs to be
enhanced so that consumers are satisfied and they enjoy consuming
beverages.
The credibility and trust needs to be built so that there is a
very strong and safe feeling that the consumers have whil e consuming
the beverages.
14

15. Consumer education is a must to bring out benefits of
beverage consumption whether in terms of health, taste, relaxation,
stimulation, refreshment, well -being or prestige relevant to
the category.
Communication should be relevant and trendy so that
consumers are able to find an appeal to go out, purchase and
consume.
The beverage market has still to achieve greater penetration and also
a wider spread of distribution. It is important to look at the entire
beverage market, as a big opportunity, for brand and sales growth in
turn to add up to the overall growth of the food and beverage industry
in the economy.
15

16. C HA P T E R 2: T H E C O C A -C O L A C O M P AN Y
2.1: HISTORY
John Smyth Pemberton, a pharmacist, first introduced Coca -Cola in the
year 1886 in Atlanta, Georgia when he concocted caramel -colored
syrup in a three-legged brass kettle in his backyard. He first
“distributed” the product by carrying it in a jug down the street to
Jacob‟s Pharmacy and customers bought the drink for five cents at the
soda fountain. Carbonated water was teamed with the new syrup,
whether by accident or otherwise, producing a drink that was
proclaimed “delicious and refreshing”, a theme that continues to echo
today wherever Coca-Cola is enjoyed.
Dr. Pemberton‟s partner and book -keeper, Frank M. Robinson,
suggested the name and penned “Coca -Cola” in the unique flowing
script that is famous worldwide even today. He suggested that “the
two Cs would look well in advertising.” The first newspaper ad for
Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty
citizens to try “the new and popular soda fountain drink.” Hand -
painted oil cloth signs reading “Coca -Cola” appeared on store awning s,
with the suggestions “Drink” added to inform passersby that the new
beverage was for soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day.
The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in
bright red wooden kegs. Red has been a distinctive color associated
with the soft drink ever since. For his efforts, Dr. Pemberton grossed
$50 and spent $73.96 on advertising. Dr. Pemberton never realized the
potential of the beverage he created. He gradually so ld portions of his
16

17. business to various partners and, just prior to his death in 1888, sold
his remaining interest in Coca -Cola to Asa G. Candler, an entrepreneur
from Atlanta. By the year 1891, Mr. Candler proceeded to buy
additional rights and acqui re complete ownership and control of the
Coca-Cola business. Within four years, his merchandising flair had
helped expand consumption of Coca-Cola to every state and territory
after which he liquidated his pharmaceutical business and focused his
full attention on the soft drink. With his brother, John S. Candler,
John Pemberton‟s former partner Frank Robinson and two other
associates, Mr. Candler formed a Georgia corporation named the Coca -
Cola Company. The trademark “Coca -Cola,” used in the marketplace
since 1886, was registered in the United States Patent Office on
January 31, 1893.
The business continued to grow, and in 1894, the first syrup
manufacturing plant outside Atlanta was opened in Dallas, Texas.
Others were opened in Chicago, Illinois, and Los Angeles, California,
the following year. In 1895, three years after The Coca -Cola
Company‟s incorporation, Mr. Candler announced in his annual report
to share owners that “Coca -Cola is now drunk in every state and
territory in the United States.”
As demand for Coca-Cola increased, the Company quickly outgrew its
facilities. A new building erected in 1898 was the first headquarters
building devoted exclusively to the production of syrup and the
management of the business. In the year 1919, the Coca -Cola Company
was sold to a group of investors for $25 million. Robert W. Woodruff
became the President of the Company in the year 1923 and his more
than sixty years of leadership took the business to unsurpassed
17

18. heights of commercial success, making Coca -Cola one of the most
recognized and valued brands around the world.
2 . 2: HI S T O R Y O F BO T T L I NG
Coca-Cola originated as a soda fountain beverage in 1886 selling for
five cents a glass. Early growth was impressive , but it was only when a
strong bottling system developed that Coca -Cola became the world-
famous brand it is today.
YEAR WISE HISTORY OF BOTTLING:
Year 1894: A modest start for a bold idea
In a candy store in Vicksburg, Mississippi, brisk sales of the new
fountain beverage called Coca -Cola impressed the store's owner,
Joseph A. Biedenharn. He began bottling Coca -Cola to sell, using a
common glass bottle called a Hutchinson. Biedenharn sent a case to
Asa Griggs Candler, who owned the Company. Candler tha nked him but
took no action. One of his nephews already had urged that Coca -Cola
be bottled, but Candler focused on fountain sales.
Year 1899: The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could
build a business around bottling Coca-Cola. In a meeting with Candler,
Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights
to bottle Coca-Cola across most of the United States for a sum of one
dollar. A third Chattanooga lawyer, John T. Lupton, soon joi ned their
venture.
18

19. Years 1900-1909: Rapid growth
The three pioneer bottlers divided the country into territories and sold
bottling rights to local entrepreneurs. Their efforts were boosted by
major progress in bottling technology, which improved effic iency and
product quality. By 1909, nearly 400 Coca -Cola bottling plants were
operating, most of them family -owned businesses. Some were open
only during hot-weather months when demand was high.
Year 1916: Birth of the Contour Bottle
Bottlers worried that Coca-Cola's straight-sided bottle was easily
confused with imitators. A group representing the Company and
bottlers asked glass manufacturers to offer ideas for a distinctive
bottle. A design from the Root Glass Company of Terre Haute, Indiana
won enthusiastic approval. The Contour Bottle became one of the few
packages ever granted trademark status by the U.S. Patent Office.
Today, it is one of the most recognized icons in the world.
19

20. Figure 2 Contour bottle design
In the 1920s: Bottling overtakes fountain sales
As the 1920s dawned; more than 1,000 Coca -Cola bottlers were
operating in the U.S. Their ideas and zeal fueled steady growth. Six -
bottle cartons were a huge hit starting in 1923. A few years later,
open-top metal coolers became the forerunners of automated vending
machines. By the end of the 1920s, bottle sales of Coca -Cola exceeded
fountain sales.
In the 1920s and 1930s: International expansion
Led by Robert W. Woodruff, chief executive officer and chairman of
the Board, the Company began a major push to establish bottling
operations outside the U.S. Plants were opened in France, Guatemala,
Honduras, Mexico, Belgium, Italy and South Africa. By the time Worl d
War II began, Coca-Cola was being bottled in 44 countries.
20

21. In the 1940s: Post-war growth
During the war, 64 bottling plants were set up around the world to
supply the troops. This followed an urgent request for bottling
equipment and materials from G eneral Eisenhower's base in North
Africa. Many of these war -time plants were later converted to civilian
use, permanently enlarging the bottling system and accelerating the
growth of the Company's worldwide business.
In the 1950s: Packaging innovations
For the first time, consumers had choices of Coca -Cola package size
and type-the traditional 6.5 ounce Contour Bottle, or larger servings
including 10, 12 and 26 ounce versions. Cans were also introduced,
becoming generally available in 1960.
In the 1960s: Introduction of new brands
Sprite, Fanta, Fresca and TAB joined brand Coca -Cola in the 1960s. Mr.
Pibb and Mello Yello were added in the 1970s. The 1980s brought diet
Coke and Cherry Coke, followed by PowerAde and Fruitopia in the
1990s. Today scores of other brands are offered to meet consumer
preferences in local markets around the world.
21

22. In the 1970s and 1980s: Consolidation to serve customers
Advancement in technology led to global economy, retail customers of
The Coca-Cola Company merged and evolved into international mega
chains. Such customers required a new approach. In response, many
small and medium-size bottlers consolidated to better serve giant
international customers. The Company encouraged and invested in a
number of bottler consolidations to assure that its largest bottling
partners would have capacity to lead the system in working with global
retailers.
In the 1990s: New and growing markets
Political and economic changes opened vast markets that were closed
or underdeveloped for decades. After the fall of the Berlin Wall, the
Company invested heavily to build plants in Eastern Europe. As the
century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.
21st Century: Coca-Cola today
The Coca-Cola bottling system grew up with roots deeply planted in
local communities. This heritage serves the Company well today as
consumers seek brands that honor local identity and the
distinctiveness of local markets. As was true a century ago, strong
locally based relationships between Coca -Cola bottlers, customers and
communities are the foundation on which the entire business grows.
22

23. 2 . 3 T h e C oc a -C o la B ot t l e ov e r t h e Y ea r s
Fi g u r e 3 : T h e Co c a - Co l a B o t t l e o v e r t h e Y e a r s
2.4 Production
Ingredients
 Carbonated water
 Sugar (sucrose or high-fructose corn syrup depending
on country of origin)
 Caffeine
23

24.  Phosphoric acid
 Caramel color (E150d)
 Natural flavorings
A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates
(all from sugar, approximately 10 teaspoons),50 mg of sodium,
0 grams fat, 0 grams potassium, and 140 calories.
Formula of natural flavorings
Coca-Cola formula:
The exact formula of Coca -Cola's natural flavorings (but not its other
ingredients, which are listed on the side of the bottle or can) is
a trade secret. The original copy of the formula was held in SunTrust
Bank's main vault in Atlanta for 86 years. Its p redecessor, the Trust
Company, was the underwriter for the Coca-Cola Company's initial
public offering in 1919. On December 8, 2011, the original secret
formula was moved from the vault at SunTrust Banks to a new vault
containing the formula which will be on display for visitors to its World
of Coca-Cola museum in downtown Atlanta.
A popular myth states that only two executives have access to the
formula, with each executive having only half the formula The truth is
that while Coca-Cola does have a rule r estricting access to only two
executives, each knows the entire formula and others, in addition to
the prescribed duo, have known the formulation process.
On February 11, 2011, Ira Glass revealed on his PRI radio show, This
American Life, that the secret formula to Coca-Cola had been
uncovered in a 1979 newspaper. The formula found basically matched
the formula found in Pemberton's diary.
24

25. Logo design
The famous Coca-Cola logo was created by John Pemberton's
bookkeeper, Frank Mason Robinson, in 1885.Robinson came up with
the name and chose the logo's distinctive cursive script.
The typeface used, known as Spencerian script, was developed in the
mid-19th century and was the dominant form of formal handwriting in
the United States during that peri od.
Robinson also played a significant role in early Coca -Cola
advertising. His promotional suggestions to Pemberton included giving
away thousands of free drink coupons and plastering the city
of Atlanta with publicity banners and streetcar signs.
2.5 Brand Portfolio:
This is a list of variants of Coca-Cola introduced around the world. In addition to the
caffeine-free version of the original, additional fruit flavors have been included over the
years. Not included here are versions of Diet Coke and Coca-Cola Zero; variant versions of
those no-calorie colas can be found at their respective articles.
25

26. Name Launched Discontinued Notes Picture
Coca-Cola 1886 The original version of Coca-Cola.
Caffeine-Free The caffeine free version of Coca-
1983
Coca-Cola Cola.
Was available in Canada starting in
Coca-Cola 1996. Called "Cherry Coca-Cola
1985
Cherry (Cherry Coke)" in North America until
2006.
26

27. New
Still available in Yap and American
Coke/"Coca- 1985 2002
Samoa
Cola II"
Available in:
Australia, American Samoa, Austria,
Belgium, Brazil, China,
Denmark,Federation of Bosnia and
Herzegovina, Finland, France,
Coca-Cola Germany, Hong Kong, Iceland, Korea,
2001 2005
with Lemon Luxembourg, Macau, Malaysia,
Mongolia, Netherlands, New
Caledonia, New Zealand,
Norway, Réunion, Singapore, Spain,
Switzerland, Taiwan, Tunisia, United
Kingdom, United States, and West
Bank-Gaza
Available in: Austria, Australia, China,
Finland, Germany, Hong Kong, New
Coca-Cola 2002; Zealand, Malaysia, Sweden, United
2005
Vanilla 2007 Kingdom and United States. It was
reintroduced in June 2007 by popular
demand.
Available in Belgium, Netherlands,
Coca-Cola
2005 Singapore, Canada, the United
with Lime
Kingdom, and the United States.
27

28. Was only available in New Zealand.
Coca-Cola Currently available in the United
June 2005 End of 2005
Raspberry States in Coca-Cola Freestyle fountain
since 2009.
Coca-Cola
Was replaced by Vanilla Coke in June
Black Cherry 2006 Middle of 2007
2007
Vanilla
Only available in the United States,
Coca-Cola Beginning of France, Canada, Czech Republic,
2006
Blāk 2008 Bosnia and Herzegovina, Bulgaria and
Lithuania
Only available in Bosnia and
Coca-Cola
2006 Herzegovina, New Zealand and
Citra
Japan.
28

29. Was available in the United Kingdom
and Gibraltar for a limited time. In
Germany, Austria and Switzerland it's
Coca-Cola
2007 sold under the label Mezzo Mix.
Orange
Currently available in Coca-Cola
Freestyle fountain outlets in the
United States since 2009.
2 . 6: MA NI F E S T O F O R GR O WT H
2.6.1: VALUES:
Coca-Cola is guided by shared values that both the employees as
individuals and the Company will live by; the values being:
LEADERSHIP: The courage to shape a better future
PASSION: Committed in heart and mind
INTEGRITY: Be real
ACCOUNTABILITY: If it is to be, it‟s up to me
COLLABORATION: Leverage collective genius
INNOVATION: Seek, imagine, create, delight
QUALITY: What we do, we do well
29

30. 2.6.2: MISSION
To Refresh the World... In body, mind, and spirit
To Inspire Moments of Optimism... Through our brands and
our actions
To Create Value and Make a Difference ... Everywhere we
engage.
2.6.3: VISION FOR SUSTAINABLE GROWTH
PROFIT: Maximizing return to shareowners while being
mindful of our overall responsibilities.
PEOPLE: Being a great place to work where people are
inspired to be the best they can be.
PORTFOLIO: Bringing to the world a portfolio of be verage
brands that anticipate and satisfy peoples‟ Desires and needs.
PARTNERS: Nurturing a winning network of partners and
building mutual loyalty.
PLANET: Being a responsible global citizen that makes a
difference.
30

31. FIGURE 4: VISION FOR SUSTAINABLE GROWTH
31

32. C HA P T E R 3: HI ND US T AN C O C A -C O L A BE V E R AGE S
P R I V AT E L I MI T E D ( HC C BP L )
3.1: ABOUT THE COMPANY
Coca-Cola was the leading soft drink brand in India until 1977, when it
left rather than reveal its formula to the Government and reduce its
equity stake as required under the Foreign Regulation Act (FERA)
which governed the operations of foreign companies in India. Coca -
Cola re-entered the Indian market on 26 th October 1993 after a gap of
16 years, with its launch in Agra. An agreement with the Parle Group
gave the Company instant ownership of the top soft drink brands of
the nation. With access to 53 of Parle‟s plants and a well set bottling
network, an excellent base for rapid introduction of the Company‟s
International brands was formed. The Coca -Cola Company acquired
soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were
floated by Parle, as these products had achieved a strong consumer
base and formed a strong brand image in Indian market during the r e-
entry of Coca-Cola in 1993.Thus these products became a part of
range of products of the Coca -Cola Company.
In the new liberalized and deregulated environment in 1993, Coca -Cola
made its re-entry into India through its 100% owned subsidiary,
HCCBPL, the Indian bottling arm of the Coca -Cola Company. However,
this was based on numerous commitments and stipulations which the
Company agreed to implement in due course. One such major
commitment was that, the Hindustan Coca -Cola Holdings would divest
49% of its shareholding in favor of resident shareholders by June
2002.
32

33. Coca-Cola is made up of 7000 local employees, 500 managers, over 60
manufacturing locations, 27 Company Owned Bottling Operations
(COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a
network of 29 Contract Packers that facilitate the manufacture pr ocess
of a range of products for the company. It also has a supporting
distribution network consisting of 700,000 retail outlets and 8000
distributors. Almost all goods and services required to cater to the
Indian market are made locally, with help of tech nology and skills
within the Company. The complexity of the Indian market is reflected
in the distribution fleet which includes different modes of distribution,
from 10-tonne trucks to open-bay three wheelers that can navigate
through narrow alleyways of Indian cities and trademarked tricycles
and pushcarts.
“Think local, act local”, is the mantra that Coca -Cola follows, with
punch lines like “Life ho to aisi” for Urban India and “Thanda Matlab
Coca-Cola” for Rural India. This resulted in a 37% growth rat e in rural
India visa-vie 24% growth seen in urban India. Between 2001 and
2003, the per capita consumption of cold drinks doubled due to the
launch of the new packaging of 200 ml returnable glass bottles which
were made available at a price of Rs.5 per bo ttle. This new market
accounted for over 80% of India‟s new Coca -Cola drinkers. At Coca-
Cola, they have a long standing belief that everyone who touches their
business should benefit, thereby inducing them to uphold these values,
enabling the Company to achieve success, recognition and loyalty
worldwide.
33

34. COBO
FOBO
CONTRACT PACKAGING
FIGURE 5: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN
INDIA
3 . 2: MA NI F E S T O F O R GR O WT H
3.2.1: VALUES
The values that the employees in the Company are expected to keep
up to and work by regularly are as follows:
LEADERSHIP: To take an initiative and lead, motivate and
drive the team with energy and zeal, to deliver outstanding results.
INNOVATION: To continuously strive for progress and reach
the next level of excellence in everything we do.
34

35. PASSION: To be deeply committed and display drive and
energy in the quest to deliver outstanding performance.
TEAMWORK: To unite for greater strength and work
collectively as a group towards the achievement of common goals.
OWNERSHIP: To think and act like owners at all levels; to
have decisions taken at the lowest appropriate level.
ACCOUNTABILITY: To be individually and transparently
accountable to our colleagues for delivering agreed targets and goals.
3.2.2: VISION FOR SUSTAINABLE GROWTH
To provide exceptional strategic leadership in the Coca -Cola India
System-resulting in consumer and customer preference and loy alty,
through Coca-Cola‟s commitment to them, and in a highly profitable
Coca-Cola Corporate branded beverages system.
3.2.3: MISSION
To create consumer products, services and communications, customer
service and bottling system strategies, processes and tools in order to
create competitive advantage and deliver superior value to;
Consumers as a superior beverage experience
Consumers as an opportunity to grow profits through the use
of finished drinks
35

36. Bottlers as an opportunity to grow profits in volumes
Bottlers as a trademark enhancement and positive economic
value added
Suppliers as an opportunity to make reasonable profits when
creating real value-added in an environment of system -wide team
work, flexible business system and continuous impro vement
Indian society in the form of a contribution to economic and
social development.
3.2.4: QUALITY POLICY
“To ensure customer delight, we commit to quality in our thoughts,
deeds and actions by continually improving our processes…Every time.”
36

37. 3 . 3: O R GA NI Z AT I O N S T R UC T UR E O F C O C A - C O L A I N
I ND I A
Chief Executive
Officer
Vice President
Supply Chain
Chief Finance
Officer
Human Resource
Director
Vice President
BSG
Regional Vice
President
(North)
Regional Vice
President
(Central)
FIGURE 6: ORGANIZATION STRUCTURE IN COCA-COLA, INIDA
37

38. Region Vice
President
AGM/AOD
Unit 1
AGM/AOD
Unit 2
AGM/AOD
Unit 3
AGM/AOD
Unit4
Region Finance
Region Human
Resource
Region Customer
Service
Region External
Affairs
Region Cold Drink
Region Legal
Region BSG
Region
Director/Manager
Market Execution
Region Capability
Region Channel
Management
FIGURE 7: ORGANIZATION STRUCTURE IN COCA -COLA, INDIA
38

39. 3.4: ORGANIZATION STRUCTURE OF THE SALES
DEPARTMENT IN HCCBPL:
AGM/AOD
Finance
Manager General
Human Sales
Plant Route to Resource Manager
Manager Market Manager
Area
Area Sales Channel
Capability
Manager Manager
Manager
Sales
Executive Marketing
Sales
Trainers
Distributors
Market Key
And
Developer Accounts
Salesmen
FIGURE 8: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT
39

40. 3.5: MANUFACTURING UNIT OF HCCBPL
The manufacturing unit of HCCBPL, situated at Bidadi, is the third
largest plant and one of the bottling operations owned by the
company. The Plant has one PET line which has the capacity of
yielding 209 bottles, per minute, two RGB (Returnable glass bottl es)
lines which yields 600 bottles per minute each and one Juice line
which yield 155 bottles per minute. It caters to the whole of South
Karnataka through a network of more than 80 distributors. There are
three depots in Bangalore; North Depot, East Depot and Mega Depot.
Manufacturing
Plant, Bidadi
Sales and
Distribution
Operations
Distributors Outlets
Outlets
FIGURE 9: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION
40

41. 3.6: MANUFACTURING PROCESS AT HCCBPL
FIGURE 10: MANUFACTURING PROCESS
The manufacturing of the products of Coca -Cola involves the following
steps:
Water is received from the River Cauvery and it passes
through the water treatment plant, further passing through the sand
filter and the activated carbon filter, so as to attain pure cleansed
water.
In the syrup room, the concentrate re ceived from another
bottling plant situated at Pune, is blended with the sugar syrup
41

42. Once both the water and the final syrup are ready, they are
both mixed together and sent to the carbonator section where Carbon
Dioxide is added to the mixture to form the final product.
On the other hand, simultaneously, the returnable glass
bottles are depalletized, inspected and washed for the purpose of
filling in the final product in it. This step does not take place in the
PET bottle line as the bottles once use d are disposed.
The product is finally filled in the bottles, crowned (in case
of RGB)/ capped (in case of PET bottles), labeled and cased in order to
be sent into the warehouse for distribution.
42

43. 3.7: BUSINESS PLAN MODEL AT HCCBPL
Coca-Cola India Manufactures
division, Concentrate,
Gurgaon Beverage base and
Syrup
Regional Manufactures
Bottlers finished
COBO/FOBO Bottles/Cans/Fountai
n Syrup
Customers
Consumers
FIGURE 11: BUSINESS PLAN MODEL
43

44. 3 . 8: D I S T R I B UT I O N NE T W O R K
HCCBPL has a wide and well managed network of salesmen appointed
for taking up the responsibility of distribution of products to diverse
parts of the cities. The distribution channels are constructed in such a
way that the demand of customers is fulfilled at the right place and
the right time when it is needed by them.
A typical distribution chain at HCCBPL would be:
Production --- Plant Warehouse --- Depot Warehouse ---
Distribution Warehouse --- Retail Stock --- Retail Shelf ---
Consumer
The customers of the Company are divided into different categories
and different routes, and every salesman is assigned to one particular
route, which is to be followed by him on a daily basis. A detailed and
well organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency
thereby leading to higher profits to the fi rm.
3.8.1: DISTRIBUTION ROUTES
The various routes formulated by HCCBPL for distribution of products
are as follows:
Key Accounts: The customers in this category collectively
contribute a large chunk of the total sales of the Company. It basically
consists of organizations that buy large quantities of a product in one
single transaction. The Company provides goods to these customers on
44

45. credit, payments being made by them after a certain period of time
i.e. either a month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.
Future Consumption: This route consists of outlets of
Coca-Cola products, wherein a considerable amount of stock is kept in
order to use for future consumption. The stock does not exhaust
within a day or two, instead as and when required stocks are stacked
up by them so as to avoid shortage or non-availability of the product.
Examples: Departmental stores, Super markets etc.
Immediate Consumption: The outlets in this route are
those which require stocks o n a daily basis. The stocks of products in
these outlets are not stored for future use instead, are exhausted on
the same day and might run a little into the next day i.e. the products
are consumed at a fast pace.
Examples: Small sized bars and restaurants, educational
institutions etc.
General: Under this route, all the outlets that come in a
particular area or an area along with its neighboring areas are catered
to. The consumption period is not taken into consideration in this
particular route.
3.8.2: DISTRIBUTION SYSTEM
Direct distribution: In direct distribution, the bottling unit
or the bottler partner has direct control over the activities of sales,
delivery, and merchandising and local account management at the
store level.
Indirect distribution: In indirect distribution, an
organization which is not part of the Coca -Cola system has control on
45

46. one or more of the distribution elements (Sales, delivery,
merchandising and local account management)
Merchandising: Merchandising means communi cation with
the consumer at the point of purchase to convey product benefit, value
and Quality. Sales people and delivery personnel both have this
responsibility. In certain locations special teams who go into business
locations to specifically merchandis e our products.
3.8.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION
PROCESS
The Distribution process mainly consists of three departments:
Distribution Department: It appoints distributors and
establishes a distribution network, processes approved sale orders and
prepares invoices, arranges logistics and ship products, co -ordinates
with distributors for collections and monitors distribution stocks and
their set-up.
Finance Department: It checks credit limits and approves
sales orders in compliance with the credit policy followed by the firm,
records collections from distributors, periodically reconciles
outstanding balances from distributors, obtains balance confirmation
from distributors and follows up outstanding balances.
Shipping or Warehousing Department: It dispatches
goods as per approved by order, ensures that stocks are dispatched on
a FIFO basis, ensures physical control over load out area and updates
warehouse stock records in a timely manner.
46

47. 3 . 9: S WO T A NA L Y S I S O F HC C BP L
3.9.1: STRENGTHS
DISTRIBUTION NETWORK: The Company has a strong and
reliable distribution network. The network is formed on the basis of
the time of consumption and the amount of sales yielded by a
particular customer in one transaction. It has a distribution network
consisting of a number of efficient salesmen, 700,000 retail outlets
and 8000 distributors. The distribution fleet includes different modes
of distribution, from 10-tonne trucks to open-bay three wheelers that
can navigate through narrow alleyways of Indian cities and
trademarked tricycles and pushcarts.
STRONG BRANDS: The products produced and marketed by
the Company have a strong brand image. People all around the world
recognize the brands marketed by the Company. Strong brand names
like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand
name of the Coca-Cola Company as a whole. The red and white Coca -
Cola is one of the very few things that are recognized by people all
over the world. Coca-Cola has been named the world's top brand for a
fourth consecutive year in a survey by consultancy Interbrand. It was
estimated that the Coca-Cola brand was worth $70.45billion.
(http://news.bbc.co.uk/1/hi/business/4706275.stm)
LOW COST OF OPERATIONS: The production, marketing
and distribution systems are very efficient due to forward planning and
maintenance of consistency of operations which minimizes wastage of
both time and resources leads to lowering of costs.
47

48. 3.9.2: WEAKNESSES
LOW EXPORT LEVELS: The brands produced by the
company are brands produced world wide thereby making the export
levels very low. In India, there exists a major controversy concerning
pesticides and other harmful chemicals in bottled products including
Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a
non-governmental organization in New Delhi, said aerated waters
produced by soft drinks manufacturers in India, including multinational
giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT,
malathion and chlorpyrifos- pesticides that can contribute to cancer
and a breakdown of the immune system. Therefore, people abroad, are
apprehensive about Coca-Cola products from India.
SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY
TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company‟s
operations are carried out on a small scale and due to Government
restrictions and „red -tapism‟, the Company finds it very difficult to
invest in technological advancements and achieve economies of scale.
48

49. 3.9.3: OPPORTUNITIES
LARGE DOMESTIC MARKETS: The domestic market for the
products of the Company is very high as compared to any other soft
drink manufacturer. Coca-Cola India claims a 58 per cent share of the
soft drinks market; this includes a 42 per cent share of the cola
market. Other products account for 16 per cent market share, chiefly
led by Limca. The company appointed 50,000 new outlets in the first
two months of this year, as part of its plans to cover one lakh outlets
for the coming summer season and this also covered 3,500 new
villages. In Bangalore, Coca-Cola amounts for 74% of the beverage
market.
EXPORT POTENTIAL: The Company can come up with new
products which are not manufactured abroad, like Maaza etc and
export them to foreign nations. It can come up with strategies to
eliminate apprehension from the minds of the people towards the Coke
products produced in India so that there will be a considerable amount
of exports and it is yet another opportunity to broaden future
prospects and cater to the global markets rather than just domes tic
market.
HIGHER INCOME AMONG PEOPLE: Development of India
as a whole has lead to an increase in the per capita income thereby
causing an increase in disposable income. Unlike olden times, people
now have the power of buying goods of their choice withou t having to
worry much about the flow of their income. The beverage industry can
take advantage of such a situation and enhance their sales.
49

50. 3.9.4: THREATS
IMPORTS: As India is developing at a fast pace, the per
capita income has increased over th e years and a majority of the
people are educated, the export levels have gone high. People
understand trade to a large extent and the demand for foreign goods
has increased over the years. If consumers shift onto imported
beverages rather than have bevera ges manufactured within the
country, it could pose a threat to the Indian beverage industry as a
whole in turn affecting the sales of the Company.
TAX AND REGULATORY SECTOR: The tax system in India is
accompanied by a variety of regulations at each stage on the
consequence from production to consumption. When a license is
issued, the production capacity is mentioned on the license and every
time the production capacity needs to be increased, the license poses
a problem. Renewing or updating a license ever y now and then is
difficult. Therefore, this can limit the growth of the Company and pose
problems.
SLOWDOWN IN RURAL DEMAND: The rural market may be
alluring but it is not without its problems: Low per capita disposable
incomes that is half the urban disposable income; large number of
daily wage earners, acute dependence on the vagaries of the monsoon;
seasonal consumption linked to harvests and festivals and special
occasions; poor roads; power problems; and inaccessibility to
conventional advertising media. All these problems might lead to a
slowdown in the demand for the company‟s products.
50

51. 3 . 10: C O M P E T I T O R S T O HC C B P L
The competitors to the products of the company mainly lie in the non -
alcoholic beverage industry consisting of juices and soft drinks.
The key competitors in the industry are as follows:
PepsiCo: The PepsiCo challenge, to keep up with archrival,
the Coca-Cola Company never ends for the World's # 2, carbonated
soft-drink maker. The company's soft dr inks include Pepsi, Mountain
Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells
Tropicana orange juice brands, Gatorade sports drink, and Aquafina
water. PepsiCo also sells Dole juices and Lipton ready -to-drink tea.
PepsiCo and Coca-Cola hold together, a market share of 95% out of
which 60.8% is held by Coca-Cola and the rest belongs to Pepsi.
Nestlé: Nestle does not give that tough a competition to
Coca-Cola as it mainly deals with milk products, Baby foods and
Chocolates. But the iced tea that is Nestea which has been introduced
into the market by Nestle provides a considerable amou nt of
competition to the products of the Company. Iced tea is one of the
closest substitutes to the Colas as it is a thirst quencher and it is
healthier when compared to fizz drinks. The flavored milk products
also have become substitutes to the products o f the company due to
growing health awareness among people.
Dabur: Dabur in India, is one of the most trusted brands as
it has been operating ever since times and people have laid all their
trust in the Company and the products of the Company. Apart from
food products, Dabur has introduced into the market Real Juice which
is packaged fresh fruit juice. These products give a strong competition
to Maaza and the latest product Minute Maid Pulpy Orange.
51

52. C HA P T E R 4: P R O D UC T S
The Coca-Cola Company offers a wide range of products to the
customers including beverages, fruit juices and bottled mineral water.
The Company is always looking to innovate and come up with, either
complete new products or new ways to bottle or pack the existing
drinks. The Coca-Cola Company has a wide range of products out of
which the following products are marketed by HCCBPL:
In the Cola Section:
52

53. In the Lemon section:
In the Orange section:
53

54. In the Juice section:
In the Soda Water and Bottled Mineral Water
section:
54

55. In the Tonic Water section:
55

56. 4.1: PACKAGING DETAILS
Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can,
200 ml and 300 ml returnable glass bottles; 500+100 ml, 1.5 litre and
2 litre PET bottles
COCA-COLA: - 300ml 330ml can 200ml
600ml 1.5l 2l
56

57. Diet Coke: 330 ml can and 500 ml PET bottle
330 ml 500ml
Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100
ml and 1litre+200 ml free PET bottles and the newly introduced 200 ml
Tetra Pack
200 & 250ml 600ml 200ml tetra
Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles
57

58. 1lt
Schweppes Soda Water: 300ml RGB 330 ml cans, 1lt PET
bottles
330 ml cans, 1lt pet 300ml
Schweppes Mineral Water: 330ml cans 750 ml PET bottles
58

59. 330ml cans 750 ml
Schweppes Tonic Water: 355 ml can
355 ml 1lt
59

60. Kinley Soda Water: 300 ml returnable glass bottles, 500+100
ml free and 1.5 litre PET bottles.
300,1.5lt..
60

61. C HA P T E R 5:
P R O J E C T _ _ ___ _ _ _ _ _ __ _ _ __ _ _ _ _ _ _ _ _ _ _
5 . 1 S AL E S P R O MO T I O N
5 . 1. 1 I NT R O D U C T I O N T O S AL E S P R O MO T I O N:
MEANING:
Sales promotion includes those sales activities, which supplement
personnel selling and advertising. It is a direct inducement that offers
extra value or incentive for the product. This incentive may be
directed towards the consumer or the trade.
In other words, promotion stimulates the customer to make
prompt decision to purchase the product. It even influences them or
prevents them from switching over to brands.
Nature of the Sales Promotion:
Marketing - Sales promotion
Sales promotion is the process of persuading a potential
customer to buy the product. Sales promotion is designed to be
used as a short-term tactic to boost sales – it is not really
designed to build long -term customer loyalty.
Some sales promotions are aimed at consumers. Others
are targeted at intermediaries (such as agents and wholesalers)
or at the firm‟s sales force.
When undertaking a sales promotion, there are several
factors that a business must take into account:
What does the promotion cost – will the resulting sales boost
justify the investment?
Is the sales promotion consistent with the brand
image? A promotion that heavily discounts a product with a
premium price might do some long -term damage to a brand
Will the sales promotion attract customers who will continue to
buy the product once the promotion ends, or will it simply attract
those customers who are always on the look -out for a bargain?
There are many methods of sales promot ion, including:
61

62. Money off coupons – customers receive coupons, or cut coupons
out of newspapers or a products packaging that enables them to
buy the product next time at a reduced price
Competitions – buying the product will allow the customer to take
part in a chance to win a prize
Discount vouchers – a voucher (like a money off coupon)
Free gifts – a free product when buy another product
Point of sale materials – e.g. posters, display stands – ways of
presenting the product in its best way or show th e customer that
the product is there.
Loyalty cards – e.g. Nectar and Air Miles; where customers earn
points for buying certain goods or shopping at certain retailers –
that can later be exchanged for money, goods or other offers
Loyalty cards have recently become an important
form of sales promotion. They encourage the customer to return
to the retailer by giving them discounts based on the spending
from a previous visit. Loyalty cards can offset the discounts th ey
offer by making more sales and persuading the customer to come
back. They also provide information about the shopping habits of
customers – where do they shop, when and what do they buy?
This is very valuable marketing research and can be used in the
planning process for new and existing products.
Sales promotion is one of the four aspects of promotional mix
(The other three parts of the promotional
mix are advertising, personal selling, and publicity/public relations .)
Media and non-media marketing communication are employed for
a pre-determined, limited time to increase consumer demand,
stimulate market demand or improve product availability.
Examples:Include contests, coupons, freebies, loss
leaders, point of purchase displays, premiums, prizes, product
samples, and rebates
Sales promotions can be directed at the customer, sales staff,
or distribution channel members (such as retailers).
Sales promotions targeted at the consumer are
called consumer sales promotions.
Sales promotions targeted at retailers
and wholesale are called trade sales promotions. Many consider
some sale promotions, particularly ones with unusual methods,
gimmicks.
62

63. Sales promotion includes several c ommunications activities that
attempt to provide added value or incentives to consumers,
wholesalers, retailers, or other organizational customers to
stimulate immediate sales. These efforts can attempt to stimulate
product interest, trial, or purchase. Ex amples of devices used in
sales promotion include coupons, samples, premiums, point -of-
purchase (POP) displays, contests, rebates, and sweepstakes.
S a l e s eP r o mo mon i o n
Sal s Pr otio t
Consumer sales Trade sales
promotions promotions
5.1.2 Consumer sales promotion techniques
Price deal: A temporary reduction in the price, such as happy hour
Loyal Reward Program: Consumers collect points, miles, or credits
for purchases and redeem them for rewards. Two famous
examples are Pepsi Stuff and AAdvantage.
Cents-off deal: Offers a brand at a lower price. Price reduction
may be a percentage marked on the package.
Price-pack deal: The packaging offers a consumer a certain
percentage more of the product for the same price (for example,
25 percent extra).
Coupons: coupons have become a standard mechanism for sales
promotions.
Loss leader: the price of a popular product is temporarily
reduced in order to stimulate other profitable sales
Free-standing insert (FSI): A coupon booklet is inserted into
the local newspaper for delivery.
On-shelf couponing: Coupons are present at the shelf where t he
product is available.
Checkout dispensers: On checkout the customer is given a
coupon based on products purchased.
On-line couponing: Coupons are available online. Consumers
print them out and take them to the store.
63

64. Mobile couponing: Coupons are available on a mobile phone.
Consumers show the offer on a mobile phone to a salesperson for
redemption.
Online interactive promotion game: Consumers play an
interactive game associated with the promoted product. See an
example of the Interactive Internet Ad for tomato ketchup.
Rebates: Consumers are offered money back if the receipt
and barcode are mailed to the producer.
Contests/sweepstakes/games: The consumer is automatically
entered into the event by purchasing the product.
Point-of-sale displays:-
Aisle interrupter: A sign that juts into the aisle from the shelf.
Dangler: A sign that sways when a consumer walks by it.
Dump bin: A bin full of products dumped inside.
Glorifier: A small stage that elevates a product above other
products.
Wobbler: A sign that jiggles.
Lipstick Board: A board on which messages are written in crayon.
Necker: A coupon placed on the 'neck' of a bottle.
YES unit: "your extra salesperson" is a pull -out fact sheet.
Electroluminescent: Solar -powered, animated light in motion.
Kids eat free specials: Offers a discount on the total dining bill by
offering 1 free kids meal with each regular meal purchased.
Trade sales promotion techniques
Trade allowances: short term incentive offered to induce a
retailer to stock up on a product.
Dealer loader: An incentive given to induce a retailer to
purchase and display a product.
Trade contest: A contest to reward retailers that sell the most
product.
Point-of-purchase displays: Used to create the urge of
"impulse" buying and selling your product on the spot.
Training programs: dealer employees are trained in selling the
product.
Push money: also known as "spliffs". An extra commission paid
to retail employees to push products.
Trade discounts (also called functional discounts): These are
payments to distribution channel members for performing some
function.
64

65. .
5.2 Sales Promotion Strategies:
There are three types of sales promotion strategies: Push, Pull, or
a combination of the two.
A push strategy involves convincing trade intermediary channel
members to "push" the product through the distribution channels
to the ultimate consumer via promotions and personal selling
efforts. The company promotes the product through a reseller who
in turn promotes i t to yet another reseller or the final consumer.
Trade-promotion objectives are to persuade retailers or
wholesalers to carry a brand, give a brand shelf space, promote a
brand in advertising, and/or push a brand to final consumers.
Typical tactics employe d in push strategy are: allowances, buy -
back guarantees, free trials, contests, specialty advertising items,
di scounts, displays, and premiums.
A pull strategy attempts to get consumers to "pull" the product
from the manufacturer through the marketing channel. The
company focuses its marketing communications efforts on
consumers in the hope that it stimulates interest and demand for
the product at the end -user level. This strategy is often employed
if distributors are reluctant to carry a product because it gets as
many consumers as possible to go to retail outlets and request
the product, thus pulling it through the channel. Consumer -
promotion objectives are to entice consumers to try a new
product, lure customers away from competitors‟ products, get
consumers to "load up" on a mature product, hold & reward loyal
65

66. customers, and build consumer relationships. Typical tactics
employed in pull strategy are: sampl es, coupons, cash refunds
and rebates, premiums, advertising specialties, loyalty
programs/patronage rewards, contests, sweepstakes, games, and
point-of-purchase (POP) displays.
Car dealers often provide a good example of
a combination strategy. If you pay attention to car dealers'
advertising, you will often hear them speak of cash -back offers
and dealer incentives.
5 . 3: O BJ E C T I V E O F T HE S T UD Y
The main objective of this study lies in studying and
understanding the present offers and schemes providing by the
Coca-Cola and how much retailer satisfying with present offers.
66

67. C H A PT E R 6 ME T H O DO L O G Y_ _ _ _ _ _ _ _ __ _ _ _ __ _ _ _ _ _ _ _
6.1 RESEARCH METHODOLOGY
6.2 DATA ANALYSIS
6 .1 RE S E AR CH M E T H O DO L O G Y
This research involved a study, which was descriptive as well
as explorative in nature it basically aims at gathering data
about how the coca-cola scheme playing in the mind of
shopkeepers & consumer.
M E T HO D S O F D AT A C O L L E C T I O N:
THERE ARE TWO TYPES OF DATA
1. Primary data
2. Secondary data
1) Pr i ma r y data collection : P r i ma r y data can be
c o l l e c t e d b y t h r e e me t h o d s .
a) Observation
b) E x p e r i me n t
c) S u r v e ys
67

68. But here, only surveys method of data collection is preferred
which is very suitable to reach the researcher motto.
A. Research instrument: Printed Questionnaire was used
as the research instrument to collect the required
information.
B. Area of surveys: The survey was conducted in
different location of Vizag city.
S a mp l i n g p l a n : s a mp l i n g p l a n c o n s i s t s o f
I. S a m p l in g u n it : T h e r e t a i l e r o f G r o c e r y s h o p , g e n e r a l
store, betel shop, and medicine store was selected from
different places of Vizag.
II. S a m p l in g s iz e : 2 0 0 O u t l e t s .
III. S a m p l in g p r oc ed u r e : Simple random sampling
procedure was followed
I V. S a m p l in g m et h od : D a t a w e r e c o l l e c t e d b y r e t a i l e r
survey. The retailers are directly contacted and interviewed
at their retail counter.
2 ) S ec on d a r y d a t a c ol l ec t ion : A s s e c o n d a r y d a t a w e r e
not available with shopkeepers as well as stockiest, so these
were collected from company records.
68

69. 6 . 2 ANA L Y S I S O F D AT A
DATA ARE COLLECTED FROM DIFFERENT LOCATION OF VIZAG LIKE:
1. Kancharapalem
2. Akkayapalem
3. H.B.Colony
4. Rushikonda
5. Mithilapuri Colony
6. P.M.Palem
7. Madhurawada
8. Carshed
9. Pendurthi
10. Chinamushidiwada
11. Gopalapatnam
12. N.A.D
13. Marripalem
And few more places…
69

70. S UR V E Y ANA L Y S I S
T HE SURVEY WAS C O ND U C T E D IN D I F F E R E NT
L O C AT I O N OF V I Z AG. A T O T AL S UR V E Y OF 2 00
O UT L E T S WA S C O ND UC T E D .
O BS E R V AT I O N
1. I visited about 200 outlets.
2. Out of 200 shops covered in different areas, I focused on
covering different shops according to location, so that I can
know where coca-cola products have the best penetration.
Among the shop covered, 17% were on the chaurastha, 35%
were on the main road, 28% in the market and 20% were
near a residential area.
3. I assigned the various shops covered into different
categories. The various categories covered were Grocery,
Confectionary, Bakery, Juice Shops, Ice Cream parlors,
Restaurant, Food Points, P.C.O , Dairy, and Pan Shops.
70

71. 6 . 3 F I ND I NG S
1. Which type of promotions do you like?
A) Volume Linked Schemes
B) Cash Discount Schemes
C) Gifts on Target Achievement
5
25
A B C
65
Interprtation:
As per the above question most of the retailers like cash discounts
on their each purchase from the company. In my survey most of
the outlets are groceries so their sale is limited when there is no
need of more volume they don‟t want other two schemes.
So as per my study if company want to launch
scheme better it should be a cash discount type.
71

72. 2. Are you receiving sufficient display material from
coke?
A) Yes B) No
25
A B
75
Interpretation:
For this question most of the retailer‟s complainting about they are
not receiving any kind of display materials very few are satisfying
with our display materials so company should concentrate about
display.
72

73. 3.Which type of premiums do you like?
A) Luggage bags B) Kitchen ware
C) Accessories D) Cash Voucher
5 2
5
A B
C D
88
Interpretation:
Like as a 1st question most of the retailers like Cash Vouchers only
after that they preferred Luggage bags and Kitchenware .
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74. 4. Are you getting all the discounts or prizes as per
company promised?
A) Yes B) No
30
A B
70
Interpretation:
Maximum retailers said no.
Example: Consumer having RGB in outlet and he get
something on backside of the crown that is not getting
from the company this was the major complaint from the
retailer.
74

75. 5. Comparing with others how is coke promotion plans?
A) Very Good B) Good C) Bad D) Worst
5 2
5
A B
C D
88
Interpretation:
To say frankly coke does not providing good promotions to
retailers as well as to the customer so major of the people
were said against to the company.
75

76. 6. What are the peak selling hours of this outlet?
A) 10am-1pm B) 2pm- 6pm
C) 6pm-10pm D) Any other
10
30
A B
C D
50 10
Interpretation:
Coming to the peak hours actually it dependes on the type
of the outlet and its location as per my survey major peak
hours are 10am to 1pm between and again 6pm to 10pm
between remaining time there is no that much customer
visit so sale was down in the remaining hours.
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77. 7) Which is the most selling pack in your outlet?
5 Coca Cola Thumsup
20
3
10
Sprite Maaza
55
30
Fanta Limca
Interpretation:
Coming to most selling brand in Vizag city Thumsup
occupied major market more then half percentage of market
share is grabed by Thumsup only after that Sprite is the 2 nd
major selling brand from the coke after those Limca and
Maaza listed.
77

78. 8. Are consumers satisfied with the variety of packs
offered?
A) Yes B) No
2
A B
98
Interpretation:
What ever the present varieties coke had in the market
with those consumers are very much happy. For this
question maximum people said yes. Coke getting more
appreciation in this concept.
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79. 9. Which pack sells the most?
A) Glass bottle B) PET bottle
C) CAN D) Tetra
3
7
A B
30
60
C D
Interpretation:
Coke got the big market from RGB and PET bottles. That
too in RGB sector 200ml was the most selling pack. Coming
to PET bottles all have the equal share but 600ml was little
bit high sale when comparing with 1ltr 1.5ltr and 2ltr paks.
79

80. 10. Which companies signage do you have at your
outlet?
A) Coca Cola B) Pepsi
C) Own D) Other
10
20
10
A B
C D
60
Interpretation:
In this category coke stands in a bad position coke not
providing sign boards in this signage section others and
owned boards are more.
80

81. 11. Which companies visi -cooler do you have in your
outlet?
A) Coca Cola B) Pepsi
C) Own D) Both
15
5 A B
20 60
C D
Interpretation:
Coming to visi coolers coke doing well job almost 60% of
the outlets are using coke coolers only. Even customer got
a chance where he can choose directly from our cooler.
81

82. 6 . 4 S U GGE S T I O NS :
Taking the above analysis into consideration, the following points can
be regarded for further sales promotion:
Present coca-cola offers are very much limited so need
improvement on schemes.
In some areas our service was little bit down like
gopalapatnam, simhachalam railway stn areas…
When comparing with Pepsi retailer offers very much less in
Coke, to keep them Coke need a better plans.
Some times Coke does not meeting market required supply.
More promotional offers have to be introduced
Market developers should be given some amount which can be used to provide credit
facility to some retailers.
Market developers and sales people should work together
Install Fountain Machine at different locations. It will be helpful in generating impulse
purchase and also as awareness about the products of the company among the consumers
Many customers prefer to have coffee or tea so Coca-Cola can launch its Georgia
coffee vending machines. As many retailers are having either Nestea or other this will be a
success.
The Company employees should make direct contact with the consumers, so that they
may aware with real situation of the market and consumers attitude towards the product.
For this they can arrange awareness camps in different locations.
Delivery should be done more quickly.
Gifts should be given to certain retailers who sells large quantities of goods.
82

83. Chapter 7 C o n c l u s io n B ib l i og r a p h y An n e x u r e
CONCLUSION
EVERY THING IN THIS WORLD IS MADE TO UTILIZE PROPERLY BUT IT
SHOULD BE REACH AT THE PROPER PERSON OR TO THE PROPER
UTILIZED AREAS. OTHERWISE THE VALUE ADDED TO THOSE THINGS
BECAME IN VEIN.
AS THERE IS A PROVERB THAT,
“FAR FROM EYE, FAR FROM HEART”
THUS MARKETING ROLE PLAYS A VERY IMPORTANT ROLE IN
ACHIEVING THE OBJECTIVES OF A COMPANY. UNDOUBTLY, VALUE
UTILITY IS CREATED BY THE MANUFACTURE OF PRODUCT OR SERVICE
BUT TIME AND PLACE UTILITIES ARE CREATED BY MARKETING ROLE.
ACCORDING TO DRUCKER, “BOTH THE MARKET AND THE
DISTRIBUTION CHANNELS ARE OFTEN MORE CRUCIAL THAN THE
PRODUCT”.THEY ARE PRIMARY AND THE PRODUCT IS SECONDRY. IN AN
ECONOMY LIKE THAT OF INDIA, WHERE MARGINAL SHORTAGES CAN
LEAD TO DISPROPORTATION DISTORTION IN PRICES, A DEPENDABLE
AND EFFICIENT DISTRIBUTION SYSTEM IS VERY MUCH ESSENTIAL. THE
DISTRIBUTION SYSTEM CREATES A VALUE ADDED TO ALL MOST ALL
PRODUCTS.
ALL FROM THE ABOVE STUDY NOT WITHSTANDING ITS RESTRUCTING
EFFORTS PEPSI IS STILL FAR AWAY WITH ITS GREAT COMPETITOR LIKE
COKE.
83

84. BI BI L O GR AP HY
Reference:
Books Authors
Marketing Research :Naresh Malhotra
Marketing Management :Philip Kotler
Research Methodology :C. R. Kothari
DATA SOURCES
Websites :
www.quickmba.com
www.indiacom.com
www.yellowpages.com
www.coca-colaindia.com
www.wikipedia.org
84

85. A NNE X UR E
Questionnaire
HINDUSTAN COCA-COLA BEVERAGES PVT.LTD
QUESTIONNAIRE ON SALES PROMOTION
Area :
Outlet Name :
Outlet Type : Convenience/ Grocery/Eat & Drink
KO/PC/Shared:
Phone no. :
1. Which type of promotions do you like?
A) Volume Linked Schemes
B) Cash Discount Schemes
C) Gifts on Target Achievement
2. Are you receiving sufficient display material from
coke?
A) Yes B) No
3. Which type of premiums do you like?
A) Luggage bags B) Kitchen ware
C) Accessories D) Cash Voucher
4. Are you getting all the discounts or prizes as per
company promised?
A) Yes B) No
85

86. 5. Comparing with others how is coke promotion plans?
A) Very Good B) Good
C) Bad D) Worst
6. What are the peak selling hours of this outlet?
A) 10am-1pm B) 2pm- 6pm
C) 6pm-10pm D) Any other
7. Which is the most selling pack in your outlet?
Note: Brand -
Size -
8. Are consumers satisfied with the variety of packs
offered?
A) Yes B) No
9. Which pack sells the most?
B) Glass bottle B) PET bottle
C) CAN D) Tetra
10. Which companies signage do you have at your
outlet?
B) Coca Cola B) Pepsi
C) Own D) Other
11. Which companies visi -cooler do you have in your
outlet?
B) Coca Cola B) Pepsi
D) Own D) Both
12. Which age group is associated with brands?
A) Coca Cola B) ThumsUp
C) Sprite D) Maaza
E) Fanta F) Limca
13. Any improvement you want in our service?
Note:
86