Coca-Cola 1

Chapter ndash 1

Indian Economic Scenario

The economic scenario of India is continuing moving forward with a diverse variety of

market oriented economic reforms These include liberation of foreign investment

and exchange regimes significant reductions in tarrifs and other trade barriers

industrial de-control reform and modernization of the financial sector significant

adjustments in govt Monetary and fiscal policies and safeguarding intellectual

property rights

Economic Scenario 2010

In order to sustain economic growth during the time of the bad

recession government authorities in India have announced the incentive packages

to support the economic growth To finance the incentive packages the Indian

government has raised over $100 billion over the last four quarters in a way

to finance the incentive package The countryrsquos public debt according to the RBI

has surged to over 50 of the total GDP and the RBI has started printing new

currency notes

Indian economy has registered a growth of 74 per cent in 2009-10 with 86 per cent

year-on-year (y-o-y) growth in its fourth quarter The growth is driven by robust

performance of the manufacturing sector on the back of government and consumer

spending GDP growth rate of 74 per cent in 2009-10 has exceeded the government

forecast of 72 per cent for the full year According to government data the

manufacturing sector witnessed a growth of 163 per cent in January-March 2010

from a year earlier

Seshadripuram Institute Of Management Studies Page 1

Indiarsquos Economic Outlook Projection

2007 2008 2009 2010 GDP Growth 940 730 540 720CPI 640 930 550 490

Economic Activities

Economic activities which showed significant growth rates in 2009-10 over the

corresponding period last year were mining and quarrying (106 per cent)

manufacturing (108 per cent) electricity gas and water supply (65 per cent)

construction (65 per cent) trade hotels transport and communications (93 per

cent) financing insurance real estate and business services (97 per cent)

community social and personal services (56 per cent) The Gross National Income

is estimated to rise by 73 per cent in 2009-10 as compared to 68 per cent in 2008-

09 The per capita income is estimated to grow at 56 per cent in 2009-10

Industrial Growth

Indiarsquos industrial output grew by 176 per cent in April 2010 The manufacturing

sector that accounts for 80 per cent of the index of industrial production (IIP) grew

194 per cent in April 2010 as against 04 per cent a year-ago

Capital goods production grew by 728 per cent against a contraction of 59 per cent

a year ago Consumer durables output continued to grow at a fast pace of 37 per

cent mirroring higher purchase of goods such as televisions and refrigerators

Agriculture

Agriculture is one of the strongholds of the Indian economy and accounted for 157

per cent of the countrys gross domestic product (GDP) in 2008-09 and 1023 per

cent of the total exports Moreover it provided employment to 582 per cent of the

work force

Production of food grains during 2009-10 is estimated at 21685 million as per

second Advance Estimates

Foreign Investment

The number of registered foreign institutional investors (FIIs) was 1710 and the total

FII inflow in equity during January to May 2010 was US$ 460650 million while it was

US$ 593180 million in debtIndia received foreign direct investment (FDI) worth US$

25888 million

The exchange rate are also contributed to economy and decide the country position

The current exchange rate as on June 2010 4714 INR

The growth has been concentrated only in some selected areas in the service

sectors rather than vital sectors such as agriculture and industry which provide

livelihoods to millions of people in the country

Chapter- 2

Industry Analysis- Soft Drink Industry In India

With the development of world and human being the taste need and the attitude of

human being is also changes India is one of the common market in the world with

the population of more than one billion Soft drink is a popular common product

which is generally purchased by consumers for quenching their thirst in summer and

also to have cooling refreshment As far as the market of soft drinks is concerned it

is facing cut throat competition from the larger number of soft drinks available in the

market Different brands are available in every segment of flavours but the attitudes

of the consumers differ from each other due to several factors

Manufacturers diversify on a health and wellness platform

Manufacturers are continued to focus on health and wellness products in 2009

introducing green tea versions of powder concentrates and RTD tea There were

also a number of launches in terms of new products and flavours in fruitvegetable

juice The only necarbonates was Grappo Fizz by Parle Agro Pvt Ltd Non-cola

carbonates performed very well as these products are perceived by consumers to be

less of a health threat than cola carbonates Even in niche categories like energy

drinks sugar-free versions were introduced as manufacturers try to attract health

conscious and diabetic consumers

Coca-Cola India continues to lead soft drinks

Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009 followed by PepsiCo

India Holdings Pvt Ltd in off-trade value terms The launch of Nimbooz by 7-Up

(PepsiCo India) helped the company retain its leading position in the terms of off-

trade value sales Coca-Cola India and PepsiCo India continued to invest in soft

drinks in India However domestic players such as Parle Agro Parle Bisleri Ltd and

Dabur India Ltd continued to provide tough competition to the leading multinationals

Thus while the leading multinationals retained their leading positions in off-trade

value terms they continued to record slight off-trade value share reductions in 2009

while these leading domestic players grew their shares

Global Market Share Percentage

Coca-Cola 50

Pepsico 21

Cadbury schweppes 7

Others 22

Marginal slowdown in supermarketshypermarkets

The growth in supermarketshypermarkets boosted the soft drinks industry over

much of the review period However due to the economic downturn the off-trade

volume share of supermarketshypermarkets decreased in 2009 This in turn

affected some of the more niche and premium product types like energy drinks and

reconstituted 100 juice which enjoyed high visibility through this distribution

channels However this trend is not expected to continue as the economy recovers

since consumers will revert to their previous shopping patterns

Soft drinks is expected to record healthy sales growth in the

forecast period

Soft drinks is expected to witness a healthy double-digit total volume CAGR growth

over the forecast period As consumer awareness and understanding of the variety

of soft drinks increases and as manufacturers continue to be innovative soft drinks

is expected to perform well Products on the health and wellness platform and niche

categories can expect to see good sales growth in the forecast period

Chapter- 3

Company Analysis ndash Hindustan Coca-Cola

Beverages Pvt Ltd

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 worldrsquos leading

manufacturer marketer and distributor of non-alcoholic beverage concentrates and

syrups used to produce nearly 500 beverage brands It sells beverage concentrates

and syrups to bottling and canning operators

distributors fountain retailers and fountain

wholesalers The Companyrsquos 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 and

producing nearly 500 brands the Coca-Cola

system has successfully applied a simple formula on a global scale ldquoProvide a

moment of refreshment for a small amount of money- a billion times a dayrdquo

The Coca-Cola Company and its network of bottlers comprise 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 The Coca-

Cola Company the worldrsquos 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 dayThe 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 Companyrsquos assets and

resources whilst limiting business risks

The bizsystem of coca-cola in India directly employs approximately 6000 people amp

indirectly creates employment for many more related industries throw our wash

procurement supply and distribution system

The vast Indian operations comprise 25 companies owned bottling operations amp 24

franchises ndashowned bottling operations The apart a network of contract packers also

mfg a range of the product for company On the distribution front 10 tone trucks

open-bay three wheelers that can navigate the narrow alleyways of Indian cities

ensure that our product available in each corner of the country

The coca cola is responsible for the manufacturing distribution amp sales of product

across the country

Historical Background Of Coca-Cola

Coca Cola is a very popular cola (a carbonated soft drink) sold in stores and

restaurants in more than 200 countries It is produced by the Coca-Cola Company

which is also often referred to as simply Coca cola or coke Coke is one of the

worlds most recognizable and widely sold commercial brands its major rival is

Pepsi Originally intended as a patent medicine when it was invented in the 19th

century Coca-cola was bought out by businessman Asa Griggs Candler whose

marketing tactics led Coke to its dominance of the world soft drink market throughout

the 20th century

The Coca -cola Company owns and markets other soft drinks that do not carry the

Coca -cola branding such as Sprite Fanta and others Coca cola was invented In

Atlanta Georgia by John S Pemberton originally as a coca wine caned

Pembertons French Wine coca in 1885 He was inspired by the formidable

success of European Angelo Marianis coca wine Mariana

History Of Soft Drink In India

The first brand of soft drink Gold spot established 53 years ago Before all

empowering Coca-Cola entered the country to dominate the soft drink market the

history of soft drink in India is quite drinking old Down the ages people consume

soft drink to give them a refreshing feeling Gold spot is considered as the first brand

of soft drink in India it was introduced in 1965

Coca- cola at the same time entered the Indian mark t and dominated the whole

market It faced no though competition from the domestic market Due to certain

circumstances the Coca cola Company discontinued its operations in India In 1993

Coca Cola was launched in Agra (India) again with a slogan of OLD WAVE HAVE

COME AGAIN Joining the hand with Parle export Pvt Ltd The Company was

trying its best to regain prestige which it had before At present only Coca Cola and

Pepsi Food are giving tough competition to each other

Coca Cola was the first foreign drink came in India in the year 1965 Coca cola had a

very good beginning in the Indian market and it hardly faced any competition in India

The marketing people did not even require advertising Coca Cola This extra

ordinary success of soft drink could be attributed to following factors

Later in 1970 it introduced Limca a lemony soft drink Before limca they had

tentatively introduced by Cola-Pepsi which they had to withdraw soon in the face

battering confrontation with Coca-Cola The Indian drink had a significant opportunity

in 1977 when Coca Cola decided to wind up its operation rather than bowing to the

government of India insistence of dilution of equity

HISTORY OF SOFT DRINK IN BIHAR

When Coca- Cola re-entered the Indian market The Hindustan Coca cola Beverages

Pvt Ltd Of Patna Bihar on lease for 20 years in 1997- 98 started its operation The

first product launched by Hindustan Coca Cola Beverages Pvt Ltd of Patna was

Coca-cola and after that all the remaining products came in the Bihar market At

present the work force capacity of the Hindustan Coca Cola Beverages Pvt Ltd is

140 including all the departments

The soft drink market in India is quite wide The production of soft drink in Bihar was

stated on 27th with March 1967 with installation of a Coca Cola bottling plant in

Jamshedpur under the auspicious guidance of late industrialist Mr Dharma Chad

Kumari which was named as Steel city Beverages Pvt Ltd The company controlled

the lions share in the soft drink market for nearly 10 years Parle also entered this

field in Bihar with the installation of bottling unit in collaboration with Mr Rajendra

Poddar in the name of Orient Beverage Pvt Ltd In 1997 with the advent of Janta

Party Government it created trouble for Coca Cola which led to withdraw its

operation from India

After the withdraw of Coca Cola from India the Parle monopolized the soft drink

market in Bihar and took a lions share of the beverages product from the industry

even after Mc Dowell pure drinks and local drinks entered into the market They

would not compete with Parle

Once again with the liberalization of economy in 1991 Pepsi Food Ltd Entered in

the India market It shared its bottling of products in Bihar by Steel city Beverages

Company on 24th March 1991 owned by Kamanis collaboration with Birla Group

which was once the bottling plant for Coca-Cola After the re-entry of Coke in 1993

the market scenario of Bihar also changed dramatically Coca cola establishes its

bottling plant in Jamshedpur (Now in Jharkhand) and Patna to counter its archrival

Mission Visions amp Values

The world is changing all around us To continue to thrive as a business over the

next ten years and beyond we must look ahead understand the trends and forces

that will shape our business in the future and move swiftly to prepare for whats to

come We must get ready for tomorrow today Thats what our 2020 Vision is all

about It creates a long-term destination for our business and provides us with a

Roadmap for winning together with our bottler partners

Mission

Our Roadmap starts with our mission which is enduring It declares our purpose as

a company and serves as the standard against which we weigh our actions and

decisions

To refresh the world

To inspire moments of optimism and happiness

To create value and make a difference

Vision

Our vision serves as the framework for our Roadmap and guides every aspect of our

business by describing what we need to accomplish in order to continue achieving

sustainable quality growth

People Be a great place to work where people are inspired to be the best

they can be

Portfolio Bring to the world a portfolio of quality beverage brands that

anticipate and satisfy peoples desires and needs

Partners Nurture a winning network of customers and suppliers together we

create mutual enduring value

Planet Be a responsible citizen that makes a difference by helping build and

support sustainable communities

Profit Maximize long-term return to shareowners while being mindful of our

overall responsibilities

Productivity Be a highly effective lean and fast-moving organization

Values

Our values serve as a compass for our actions and describe how we behave in the

Leadership The courage to shape a better future

Collaboration Leverage collective genius

Integrity Be real

Accountability If it is to be its up to me

Passion Committed in heart and mind

Diversity As inclusive as our brands

Quality What we do we do well

Focus on the Market

Focus on needs of our consumers customers and franchise partners

Get out into the market and listen observe and learn

Possess a world view

Focus on execution in the marketplace every day

Shareholding Pattern

Sr No Holder Shares Out

1 FIDELITY DISCIPLINED EQUITY FUND (USA) 5700000 114

2 CRM Mutual Fd Tr-Mid Cap Value Fd 3647200 73

3 JNL Variable LLC-JNLMellon Cap JNL 5 Fd 3079000 62

4 VANGUARD TOTAL STOCK MARKET INDEX

2966951 59

5 VANGUARD 500 INDEX FUND 2949370 59

6 SPDR SampP 500 ETF Trust 2330486 47

7 VANGUARD INSTITUTIONAL INDEX FUND-

INSTITUTIONAL INDEX FD

2223290 44

8 COLLEGE RETIREMENT EQUITIES FUND-

STOCK ACCOUNT

2166555 43

9 FRANKLIN TEMPLETON VAR INS PR-MUTUAL

GLOBAL DISCOVERY SECURI

2129800 43

10 FRANKLIN MUTUAL SER FD-MUTUAL GLOBAL

DISCOVERY FD

2129800 43

Organizational Chart of

Hindustan Coca Cola Beverages Pvt Ltd

Organisation Structure

No Of Employees Working

Gender Employees Numbers

Male 130

Female 10

Total 140

Classification Of Employess

Particulars Numbers Percentage

Below 20 Years 5 357

20-30 Years 35 25

30-40 Years 70 50

Above 40 Years 30 2143

Total 140 100

Service Renderd

Service Rendered Percentage

Less Than 5 Years 17

6 - 15 Years 42

16 - 25 Years 40

26 Years and Above 35

Total 100

Gender Percentage

Male 93

Female 7

Total 100

Marital Status

Marital Status Number Percentage

Married 85 6072

Single 55 3928

Total 140 100

Size Of Land amp Building

Coke begins its operation in Patna on 4th Sept 1998 by taking over the franchise

bottlerIt is located at E-I Industrial Area Patliputra Plant is spread over an area of

175 acres and houses most sophisticated machinery to produce coca-cola and

many other brands marketed by the companyThe plant can produce around 24000

cases of soft drinks per day and employees 113 workers to do the same

Corporate Head quaters Of Coca-Cola Pvt Ltd In Atlanta USA

Branches Of Coca-Cola in India

Products Produced

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 following products are marketed by HCCBPL

Market Share

Companyrsquos Major

Local Sales and Exports amp imports which involve exports to different countries like

Bangladesh United States of America United Kingdom Singapore and Malaysia

Customer Profile

The customer of CoCa-Cola are-

Retailers

Distributers

Final Consuemer

Suppliers of Raw Materials

Tate amp Lyle

South Eastern Container

Market Share Percentage

Coca-Cola Classic 203

Pepsi 139

Diet Coke 86

Mountain Dew 71

Sprite 65

Dr Pepper 62

Diet Pepsi 49

Seven-Up 20

Minute Maid Orange 15

Others 295

Total 100

Cutrale Citrus Juice USA

Visy Industries

Bankers and Financial Institution

Sl No Holder

1 BlackRock Institutional Trust Company

2 FMR LLC

3 Bank of New York Mellon Corporation

4 STATE STREET CORPORATION

5 VANGUARD GROUP INC (THE)

6 SCOUT CAPITAL MANAGEMENT LLC

7 LSV ASSET MANAGEMENT

8 CRAMER ROSENTHAL McGLYNN

LLCADV

9 FRANKLIN RESOURCES INC

10 JANUS CAPITAL MANAGEMENT LLC

Related Ancillary Industry

Pepsico

Nestle

RC Cola

SWOT ANALYSIS OF THE COMPANY

Coca-Cola Company is one of the leading MNC in the world It has made a

remarkable growth since it origin and it has got a good potential in spite of various

hurdles coming its way By going through its SWOT analysis we can know much

more about the company

Strengths

The company has got various strengths which leads the company be a market

leader Some of the strengths listed below

1 Beverage experience

2 Personal relations

3 Knowledge regarding competitor

4 Hardworking stuff and distributer

5 People reliance on quality of product and brand

6 Coca-Cola has been a complex part of world culture for a very long time

7 The productrsquos image is loaded with over-romanticizing and this is an image

many people have taken deeply to heart The Coca-Cola image is displayed

on T-shirts hats and collectible memorabilia

8 This extremely recognizable branding is one of Coca-Colarsquos greatest

strengths ldquoEnjoyed more than 685 million times a day around the world Coca-

Cola stands as a simple yet powerful symbol of quality and enjoymentrdquo

Additionally Coca-Colarsquos bottling system is one of their greatest strengths It allows

them to conduct business on a global scale while at the same time maintain a local

approach The bottling companies are locally owned and operated by independent

business people who are authorized to sell products of the Coca-Cola Company

Because Coke does not have outright ownership of its bottling network its main

source of revenue is the sale of concentrate to its bottlers

Weaknesses

Weaknesses for any business need to be both minimized and monitored in order to

effectively achieve productivity and efficiency in their businessrsquos activities Coke is no

exception

Local Weaknesses

a) Finance problem

b) Less empty on floor

c) Vehicles are less

d) Large number of PCI empty stock

e) More seasonal demand

f) Poor service

g) High prices

Coca-Cola on the other side has effects on the teeth which is an issue for health

care It also has got sugar by which continuous drinking of Coca-Cola may cause

health problems Being addicted to Coca-Cola also is a health problem because

drinking of Coca-Cola daily has an effect on body after few years

Opportunities

1 Brand recognition is the significant factor affecting Cokersquos competitive

position Coca-Colarsquos brand name is known well throughout 94 of the world

2 Coca-Colarsquos bottling system also allows the company to take advantage of

infinite growth opportunities around the world This strategy gives Coke the

opportunity to service a large geographic diverse area

3 Opening new outlets in the area where the coca colarsquos market share is less

4 Covering greater institutional areas as younger generation gets much

fascination out of such beverages

Local Opportunities

a) Customers are anode from competitor especially in rural area

b) New projects have been started

c) Niche markets that large companies do not wish to serve

Threats

Currently the threat of new viable competitors in the carbonated soft drink industry is

not very substantial

1 The threat of substitutes however is a very real threat The soft drink industry

is very strong but consumers are not necessarily married to it Possible

substitutes that continuously put pressure on both Pepsi and Coke include

tea coffee juices milk and hot chocolate

2 Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage

market the changing health-consciousness of the market could have a

serious affect

3 Consumer buying power also represents a key threat in the industry The

rivalry between Pepsi and Coke has produce a very slow moving industry in

which management must continuously respond to the changing attitudes and

demands of their consumers or losing market share to the competition

4 Furthermore consumers can easily switch to other beverages with little cost

or consequence

5 Competitorrsquos distributor is financially strong

6 Competitor is thinking seriously about textile sector market

7 Economic conditions become unfavourable

Chapter - 41

Functional Analysis- Production Department

Manufacturing Unit of HCCBPL

The manufacturing unit of HCCBPL situated at Patna is 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 bottles) lines

which yields 600 bottles per minute each and one Juice line which yield 155 bottles

per minute It caters to the whole Bihar through a network of more than 50

distributors

Fig 1 Chain followed from manufacture to distributon

Manufacturing Plant Patna

Sales and Distribution Operations

Distributors

Outlets

Products Produced-

BRAND GLASS TETRA PACK PET CAN FOUNTAIN

200ml amp 300 ml ---

600 ml 15 L125Land 2L

330 ml Various sizes

Diet coke

--- --- ----330 ml

200ml amp 250 ml

125ml amp 200ml

600 ml amp 12 L ----

200 ml amp 300 ml ----

600ml 15L 2L 225 L

Coca-Cola

200 ml amp300 ml ----

600ml 15L2L

Thumps Up

200 ml amp300 ml ----

600ml 15L2 L

330 ml Various Sizes

Sprite

200 ml amp300 ml

600ml 15 L2 L

---- ----500 ml amp1 L ---- ----

MinuteMaid Pulpyorange

---- ----500 ml

---- ----

Raw Materials

Water is a main ingredient in substantially all Coca-Cola products In addition to

water the principal raw materials used by our business are nutritive and non-nutritive

sweeteners The principal nutritive sweetener is sucrose another form of sugar

which is available from numerous sources and is historically subject to fluctuations in

its market price The principal non-nutritive sweeteners we use in our business are

aspartame acesulfame potassium saccharin cyclamate and sucralose

Company-owned or consolidated bottling and canning operations and finished

products business also purchase various other raw materials including but not

limited to PET resin preforms and bottles glass and aluminum bottles aluminum

and steel cans plastic closures aseptic fiber packaging labels cartons cases post-

mix packaging and carbon dioxide

Inventory Management 2 methods are followed based on the

requirement

At Factory

FIFO Method All the materials that come in first are sent out first there is no

staggering of raw materials

JIT Method This method is used specifically for Suzuki Motors all the materials are

supplied when the company orders for the products and this method is specially

used for 1 client as per their specifications and requirements

At Stores

FIFO and LIFO Methods Based on the current demand one of the methods are

followed by the stores management there is no stock maintenance at any of the

stores

Total Quality Management Tools Used

Pareto Principle

The Pareto principle suggests that most effects come from relatively few causes In

quantitative terms 80 of the problems come from 20 of the causes (machines

raw materials operators etc) 80 of the wealth is owned by 20 of the people etc

Therefore effort aimed at the right 20 can solve 80 of the problems Double (back

to back) Pareto charts can be used to compare before and after situations General

use to decide where to apply initial effort for maximum effect

Scatter Plots

A scatter plot is effectively a line graph with no line - ie the point intersections

between the two data sets are plotted but no attempt is made to physically draw a

line The Y axis is conventionally used for the characteristic whose behaviour we

would like to predict Use to define the area of relationship between two variables

Warning There may appear to be a relationship on the plot when in reality there is

none or both variables actually relate independently to a third variable

Control Charts

Control charts are a method of Statistical Process Control SPC (Control system for

production processes) They enable the control of distribution of variation rather than

attempting to control each individual variation Upper and lower control and tolerance

limits are calculated for a process and sampled measures are regularly plotted about

a central line between the two sets of limitsThis prevents

over-correctioncompensation for random variation which would lead to many

rejects

Flow Charts

Pictures symbols or text coupled with lines arrows on lines show direction of flow

Enables modelling of processes problemsopportunities and decision points etc

Develops a common understanding of a process by those involved No particular

standardisation of symbology so communication to a different audience may require

considerable time and explanation

Cause and Effect Fishbone Ishikawa Diagram

The cause-and-effect diagram is a method for analysing process dispersion The

diagrams purpose is to relate causes and effects Effect = problem to be resolved

opportunity to be grasped result to be achieved Excellent for capturing team

brainstorming output and for filling in from the wide picture Helps organise and

relate factors providing a sequential view Deals with time direction but not quantity

Can become very complex Can be difficult to identify or demonstrate

interrelationships

Histogram or Bar Graph

A Histogram is a graphic summary of variation in a set of data It enables us to see

patterns that are difficult to see in a simple table of numbers Can be analysed to

draw conclusions about the data set

Check SheetsA Check Sheet is a data recording form that has been designed to readily interpret

results from the form itself It needs to be designed for the specific data it is to

gather Used for the collection of quantitative or qualitative repetitive data Adaptable

to different data gathering situations Minimal interpretation of results required Easy

and quick to use No control for various forms of bias - exclusion interaction

perception operational non-response estimation

Check Lists

A Checklist contains items that are important or relevant to a specific issue or

situation Checklists are used under operational conditions to ensure that all

important steps or actions have been taken Their primary purpose is for guiding

operations not for collecting data Generally used to check that all aspects of a

situation have been taken into account before action or decision making Simple

effective

Safety Program

HCCBPL Patna are committed to ensure the maximum level of safety and

prevention of loss for employees assets and visitors We believe in the involvement

of each and every one of us in this effort and realize the importance of every

individualrsquos contribution to safety We strive for continuous improvement in our

safety standards and to the consistently meet or exceed them We therefore will

make certain that the necessary financial and personnel resources are made

available in order to continuously improve our safety standards With this belief we

vow to

Set our safety standard at a level that ensures compliance with governmental and

company requirements

Protect our employees and ensure public safety extending throughout our

organization

Integrate sound safety practices in to our daily business operation even in the

absence of specific regulatory requirements use the results of research and new

technology to minimizing the safety risks of our operations equipment products and

packages taking in to account the associate costs or profit for each safety benefits

Ensure each and every one to use in responsible and accountable for our actions

Establish mechanisms to communicate effectively with employeersquos consumers and

government on our safety performance

Manufacturing Process

1 Water Treatment

HCCBPL Patna follow a batch treatment which includes coagulation amp flocculation

The method ensures disinfection and settling of all macro impurities and there after it

pass to sand carbon filters to remove off odour off colour off taste and thus it is

strictly bought in line with the WHO requirements They are also using state of art ndash

micron filtration process where the water is filtered up to the extent of 1 micron

before it is fed to the process This extensive treatment of water under strict

monitoring and sampling for quality leads to pure hygienic water with the highest

quality meeting the Coca-Cola standards

2Syrup Preparation

Coca-Cola uses highest quality of sugar which is controlled and ensured by its

stringent pre-laid standards which serves as the strict criteria before acceptance of a

lot To ensure high quality of syrup it is subjected to hot treatment wherein it is given

a contact time with hyflo and carbon at elevated temperature It is then passed

through a filter press which removes the carbon particles and other impurities before

it declared fit for concentrate mixing All this process takes place under the strict vigil

by the quality department which maintains the appropriate records of the numerous

tests carried out in the entire process which makes it a foolproof process

In the ready syrup tank the pre-decided quantity of concentrate is mixed to the

simple syrup in very strict hygienic condition to yield final syrup The entire syrup

manufacturing area is maintained under a constant positive pressure which rules out

the possibility of any external particles entering into the process room

3 Container Washing

Container has been identified as one of the major critical control point in the entire

manufacturing process amp thatrsquos the reason that company has laid some of the very

stringent and foolproof systems which ensures Coca-Cola product to be of the

highest quality and reflects our commitment towards delivering the best in class

product to the consumers

The bottles received from the market are loaded on the conveyor by the uncasing

machine and the arrays of the unwashed bottles passes through the four pre-wash

inspections stations which ensures removal of rusty neck bottles excessively dirty

bottles bottles carrying foreign matter foreign bottles And thus the good bottles

pass into the bottle washing machine which uses intensive mechanical and chemical

processes to clean and disinfect the bottles thoroughly and ensures the bottles to be

ready for filling However as an additional safety there is again a post wash

inspection station comprising of 4 sub-stations which ensures removal of the chip

necked bottles and suspected bottles from the lot Thus the bottles are subjected to

series of stringent inspections before it is fed to the filler for filling

4 Mixing Proportioning

Proportioning is basically a process where ready syrup is diluted in a predetermined

fixed proportion with water and carbonated concentrate in to beverage conforming

strictly to companyrsquos norms and specifications It is carried out by an Italian Machine-

MOJONNIER

5 Filling amp Crowning

The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles

through a rotator machine named FILLER The bottles are immediately crowned by

crowner (adjacent to the filler) and thereafter bottles passes through the date coding

machine which enable the consumer to be 100 percent sure of consuming a

perfectly safe and fresh product

6 Final Inspection

After date coding there is once again a final inspection station where light inspectors

all low or high filled bottles and permit only the saleable product to pass through for

casing to the caser machine

7 Managing The Waste Water

Production lines maintain the waste water from the bottle washers Syrup and Filler

rooms Entire waste water generated is treated at Waste Water Treatment Plant and

discharged through a 800 meters long pipeline specially laid to discharge the treated

waste water away from inhabited areas Part of this water is being used for

gardening purpose within the plant premises

8Market amp Customer

Once the finished product is ready it is transported to the distribution centers and

then to retail outlets by way of route trucks The consumer buys the soft drink from

the retailer outlets The empty bottles are simultaneously collected by the distribution

channels at the time of dispensing the finished products

9 Suppliers and Other Business Partner

Other than water and concentrate bottling operation require sugar CO2 bottles

crates and other miscellaneous materials The Coca-Cola India division has a

Supplier authorization program where suppliers are authorized based on a defined

criterion Environmental considerations are amongst the critical of these criterions

Challenges faced by production managers due to recession in the

economy

The ProductionOperations Manager is the worst hit during the recessions as he

is the person involved with production and people management

1 Low Demand of products

2 People Management forms a very critical part for the manager to maintain

during the recession as the company does not want overheads but the

manager cannot release the employees

3 Low Realization due to low production

4 Employee Efficiency is at the decline due to lot of ideal time

5 Maintain the right Revenue Projection will be hard for the production

manager as it will be at the lowest

6 ROI will not be achievable as the Returns are Less than the Investment

7 Maintain the Employee relation strong to retain talent

Fig 2 Manufacturing process

Vendor Management

Vendors are selected from head office the local authorities has to pass the audit

check after that a vendor is become permanent supplier

Vendor management can be a painless process by following a few simple guidelines

1048707 Share your top priorities with vendors to ensure they are aware of them

1048707 Obtain solutions with features that fit your organization now and allow room for

growth in the future

1048707 During the evaluation process narrow down the choices to your top two vendors

Engage in negotiations with the top two (rather than just one vendor) to

encourage friendly competition

1048707 If you are looking to build long term relationships with your vendors avoid overly

aggressive maneuvers for short term gain

SWOT Analysis

Strength

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

Low Cost Of Operation The production system is very efficient due to

forward planning and maintenance of consistency of operation which minimise

cost of operation

Weaknesses

Although domestic businesses as well as many international markets are

thriving Coca-Cola has recently reported some ldquodeclines in unit case

volumes in Indonesia and Thailand due to reduced consumer purchasing

powerrdquo

Being addicted to Coca-Cola also is a health problem because drinking of

Coca-Cola daily has an effect on body after few years

Opportunities

Coca-Colarsquos bottling system also allows the company to take advantage of

Minor signage work is done in area by PCI

PCI is getting interest in textile sector

New technologies that increase efficiencies

Threats

Water is the main ingredient in substantially all of our products It is also a

limited resource in many parts of the world facing unprecedented challenges

from overexploitation increasing pollution poor management and climate

change As demand for water continues to increase around the world and as

water becomes scarcer and the quality of available water deteriorates our

system may incur increasing production costs or face capacity constraints

which could adversely affect our profitability or net operating revenues in the

long run

Even though Coca-Cola and Pepsi control nearly 40 of the entire beverage

serious affect

Chapter- 42

Functional Analysis- Marketing Department

Marketing is the basic reason for the existence of a business organisation In the age

of fast changes marketing is the springboard of all activities Basically Marketing

Department is necessary for every organisation In multinational companies like coca

cola have their own separate department of marketing

Sales Department

hart-4 Sales Department of HCCBPL

The sales department of the Coca Cola Company is to coordinate the

selling program They also have to make the distribution methodsetc

Also decide how much to sell and how much to store in the warehouse

and to choose the transporting method which is the most cost efficient and the

quickest way

Marketing research Department

This department has their budget given by the finance department and

their responsibility is to investigate new products They work closely

with marketing by looking at marketing research findings They have to

bring new products in the market for the change because the consumer

cannot stick with the same old products If necessary then they also

have to improve the quality of the products The Coca-Cola Company

research department has done a lot of research

Promotion Department

In todayrsquos competitive environment having the right product at the right place in the

right place at the right time may still not be enough to be successful Promotion is

designed to inform the marketplace about who you are how good your product is

and where they can buy it Promotion is also used to persuade the customers to try a

new product or buy more of an old product

Promotions refers to mainstream media Advertising through common media such as

television radio transport and billboards and in newspapers and magazines

Because most of the target is most likely to be exposed to media such as television

radio and magazines Coca Cola has used this as the main form of promotion for

extensive range of products

Promotion through restaurants and cinema hall hordings

Coca-cola is tying up with different chains of restaurants and fast food centers to

promote the Coca-cola and its other brands like Limca Sprite Maaza etc these

restaurants are authorized to keep and use the merchandising assets of Pepsi

Advertising

It is a impersonal salesmanship for mass selling a means of mass communication

The company uses adver4tising to trigger desire as often and in as many ways as

possible Through out the years slogans or coca-cola have been memorable

Brand Ambessdors

Coca-Cola had signed on various celebrities including movie stars and cricket

players such as Shahrukh Khan Hritik Roshan Amir Khan Akshay Kumar

Aishwerya Rai Vivek Oberai Rani Mukherjee Bipasha Basu Riya Sen Saurav

Ganguly Virendar Sehwag

Sales Promotion

Coca-Cola gives discount my giving free extra 25 cold drink in PET bottle Sales

promotion gain additionl market share or additional revenue expand the target

market

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

MARKETING STRATEGIES

1) Coca-Cola sales club

This club is for the retailers In this approach retailers are given some points

once in a month depending upon how they are using the display material provided by

the company to them This material consists of Fridges DPS Boards Glow Sign

Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc

Depending upon these points retailers are rewarded by certain gifts from the

company

2) Schemes

Hindustan Beverages India comes out with the schemes on their different products

many times in a year Most of these schemes are made to benefit the retailers

Some of the schemes are as follows

1 bottle of 2lt free with one 2lt bottle pack

2 bottles of 500ml free with one 500ml bottle pack

6 bottles of Kinley free with one pack of Kinley

3) Advertising

Through the consumers survey it has been proved that the TV commercials and

sinages affect the consumer buying behaviour by approximately 70 May be only

Cococola is investing huge finances in the TV commercials and other sinages big

names of Indian film industries and sports herorsquos are being proposed to become the

brand promoters and brand ambassadors

Posters

DPS boards

Glow Sign boards

Date calendars

Cinema hall tickets

Radio commer

4) Merchandising assets

Coca-Cola also try to promote their brands by providing their retailers and dealers

some display items Some of such items are as follows

1 Fridges

2 Coca-ColaMazza stands

3 Display bottles

4 Posters

Retailers usually use the merchandising asset of one company in such a way that it

benefits another company Sometime they do it unknowingly sometimes they do it

knowingly and sometimes because of the deficiencies of the company itself These

deficiencies are as follows -

1 Irregularity of the salesman to the retailers shop

2 Shortage of the different products and different packages

3 Sometimes because of the rude behavior of the salesman

6) Strengthen distribution network and promotions through word of mouth

through sales man

Unlike the rival brand Pepsi Coca-Cola co Basically depends upon its sales man

for promoting and launching the new as well as old brands because instead of doing

the business through dealerrsquos network like Pepsi Coca-cola believes in making and

maintaining relations with retailers directly Therefore salesman is the very important

part of Coca-cola co marketing strategy

SWOT Analysis Strengths

Knowledge regarding competitor

Hardworking stuff and distributer

More market share in textile sector

People reliance on quality of product and brand

Coca-Cola has been a complex part of world culture for a very long time

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

Weaknesses

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

The Companyrsquos operations are carried out on a small scale and due to

Government restrictions and lsquored-tapismrsquo the Company finds it very difficult to

invest in technological advancements and achieve economies of scale

Opportunities

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 50000 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 3500 new villages

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 domestic

market

Threats

The nonalcoholic beverages segment of the commercial beverages industry is

highly competitive We compete with major international beverage companies

that like our Company operate in multiple geographic areas as well as

numerous firms that are primarily local in operation In many countries in

which we do business including the United States PepsiCo Inc is a primary

competitor

Consumer buying power also represents a key threat in the industry The

Chapter- 43

FUNCTIONAL ANALYSIS- HR DEPARTMENT

Human Resource Management is an essential part for any organization Moreover

development of this department is the first step the ground on which the future of the

company depends It is essential for every single business unit and especially for

such international company as Coca Cola It is people not technology who create

the company Human Resource Management at Coca Cola Company has many

advantages It is the global company and it is impossible to create certain policies or

procedures applicable in all divisions of the company cultural and political

differences need to be taken into account

Basically the HRM practices are necessary for every organization In multinational

companies like coca cola have their own separate department of HRM

HR Srategy Of The Company

Every organization has its own policies and strategies by which they control the

functions of their departments Similarly we also have own policies and strategies by

which we control all the functions of our departments coca cola HR department is

also conducting all the practices of HRM like Job analysis and design of work

recruitment and selection training and development performance appraisals

compensation employee relationships staff welfare and medical policies and some

other things like that These all practices are conducted by own policies and

strategies

HR department not make decisions related of its own department they also conduct

in companyrsquos decision

Recruitment amp Selection Process

Recruitment process is well established first of all they give ads in news papers

company website institutions etcOnce they receive an application form from

candidates with required documents and C V

Internal recruitment

External recruitment

The selection process will vary depending on the position yoursquore applying for as one

process canrsquot fit all the different roles we have here at CCE However in most cases

a combination of any of the following tools will be used

Interview

Group exercises

Presentations

Psychometric tests

Role playsSituational Exercises

Interview

The interview is designed to reveal more about you and your experiences Wersquoll ask

for examples of how you behaved in different situations maybe at school university

a club at home or in previous jobs This is not designed to catch you out and our

interviewers will never try and trick you into an answer

Group exercises

Wersquore very much a team at CCE so these will show us how effectively you work with

people Theyrsquore a good opportunity for us to see how you communicate influence

and involve other people in the workplace

Presentations

Presentations give you the chance to show your ability to communicate to a group of

people on a specific topic You may be given a topic in advance or on the day but

donrsquot worry ndash yoursquoll have plenty of time to prepare

Psychometric tests

Psychometric tests are timed exercises that examine candidate abilities and

potential On occasions we may also use a personality assessment tool that is

designed to find out more specific things about candidate

Role PlaysSituational Exercises

Designed to assess how you react in certain situations these help to highlight

particular skills and how well yoursquore suited for a position You may be given facts and

figures to review or a report to complete we may also have an assessor acting as a

customer or employee to simulate a situation that could occur in the workplace

Training amp Development Program

Training process is essential part of every employee with out training employee can

not come to now the procedure of work rules and regulations of firm some times

when new technology is introduced it is also responsibility of a firm to train its

employees

After recruiting the fresh employee we train them for three months and also pay them

salaries after three months they become part of a firm

Promotion Policy

Employee has to complete at least a minimum of 1 year prior to being eligible for any

kind of Promotion

The criteria of evaluation are as follows

bull On Bases of performance appraisal scores

bull Attendance (excluding Privilege Leave)

bull Competencies

bull Education

bull Honesty and sincerity

Transfer Policy

While transfering employee HR Manager must have set objectives

- Appointment letter must have clause for transfer

- Transfer should be followed by the following

- Company letter for exemtping taxes levied on commercial goods while

Transportation of Household Goods

- Reimbursement of the Transportation Cost

- Traveling Fare with expenses for family members from present place to his place of

transfer

- Initial settlement expenses if any as employee asistance for gas connection and

other expenses

Compensation and Benefits

HR department manager says that employees are our assets there for we are

careful about their health and benefits We give following compensation and benefits

Basic salary

Medical facility

Pick and drop

Gratuity Fund

Social security

We get many advantages from our employees because they are happy from

company Our employees are satisfy from our compensation and in the coca cola

never downsizing occurred which shows that well relationship between employees

and company

Empowerment

Empowerment includes the following or similar capabilities-

The ability to make decisions about personalcollective circumstances

The ability to access information and resources for decision-making

Ability to consider a range of options from which to choose (not just yesno

eitheror)

Ability to exercise assertiveness in collective decision making

Having positive-thinking about the ability to make change

Ability to learn and access skills for improving personalcollective

circumstance

Ability to inform othersrsquo perceptions though exchange education and

engagement

Involving in the growth process and changes that is never ending and self-

initiated

Increasing ones positive self-image and overcoming stigma

Increasing ones ability in discreet thinking to sort out right and wrong

Reward ndash Punishment System

The Rewards amp Punishment Includes-

Rewards-

Monetary Incentives Promotion Bonus

Punishment-

Demotion Transfer

Performance appraisal

Coca cola performance appraisal is annually Hr manger waqar mahmood said that

we appraise the employee due to their performance about goals of the

organization we set the goals started the year and tell the employees about the goal

if the employees achieve this goal we appraise the employees

Steps in appraising performance

The performance appraisal process process contains three steps

Define the job

Appraise the performance

Provide feedback

Retrenchment

Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity

of an organizations operations Retrenchment is also a reduction of expenditures in

order to become financially stable Retrenchment is nothing but Downsizing the

Excess Manpower of the Company

Retrenchment takes place due to the following reasons

1 Reduction in the Volume of Business

2 Company running on Excess Manpower

Results of Retrenchment

1 cost cutting

2 Downsizing the Strength so that equal responsibility is shared betn the current

employees

SWOT Analysis

Strengths

Providing competitive advantage to all employees

Evaluating permormance of the employee time to time

Employees are satisfy from compensation and in the coca cola never

downsizing occurred which shows that well relationship between employees

and company

Weakness

No free snacks and tea provided to workers

There is no mentoring program are provided to workers so that they canrsquot

improve their efficiency

There is gap between higher level management and lower level management

Opportunities

Create a system of mentoring program that includes one-to-one mentoring

group mentoring mentoring self-study tools These programs promote trusting

relationships for networking coaching career counseling and life lessons

The benefits of mentoring also strengthen our company Mentoring increases

the flow of information across organizational lines and encourages diverse

thinking and cross-functional learning

We have a strong commitment to hiring interns through The Coca-Cola

Company Internship Programs The company offers a number of internship

programs for undergraduate and graduate students

Threats

Diversity of employees if competitive company offers more salries bonus

Promotional opportunities are blocked

Chapter ndash 44

Functional Analysis- Finance Department

The finance function deals with the procurement of money at the time when it is

needed and its effective utilization in the enterprise Money is the life blood to

purchase of any enterprise as it is required to purchase machines and materials to

pay wages and salaries to employee and to allow credit facilities to customer

The event of capital-intensive technique has increased the importance of finance

The ambition plans of an industrial undertaking will remain mere dreams unless

adequate finance is available to convert them into reality Therefore it has become

an important function of management to provide for adequate finance for the

functioning of the enterprise

For companies which carry on production and distribution and distribution on a

large scale provision of adequate finance is a very challenging task It affects all the

business decisions where money is involved since the large commercial and

industrial undertaking are set up in the form of companies the problem of finance for

modern business is for all practical purpose of the problem of corporate finance

Any business for the matter whether large or small profit motive is consider to be a

financial concern and its success or failure to a large extent depends on its financial

decisions It involves planning and controlling of the financial resources of the firm

Purchase finance clear the purchase proposals

Priced store ledger

Bills payable

Hierarchy of finance department

Functions

The finance department gets funds extremely from the sales holders and banks They

provide funds only for expansion purpose and purchase of fixed capital like

machinery plant amp building etc on long term loan basis The working capital is

provided by the internal working capital

Planning

Acquisition of funds

Investments of funds

Dividend decision

Preparing of financial statements

Accounts payable

General ledger

Working capital management

Planning of funds

Finance Manager

AFM (payment)

AFM (working capital)

Executive (freight) E

se) Executive

(claims)

Executive (cashier)

Executive (credit control)

Executive (bills)

Planning of funds refers to the total funds required which includes both fixed and

working capital requirement In the current year

Acquisitions of the funds

The company acquisition funds from different resources like they gets funds from

share holders by issuing shares and borrowing money from banks in the form of

loan and they get fund from sales of scrap existing in the organization

Allocation of funds

The Company allocates the funds what they required from different sources

To purchase raw materials

To salaries for employees

To expenses

To pay the interest for the loan amount

Investment decision

Investment decision of investment in the capital assets investment in current assets

which are purchased by the company

Dividend decision

Dividend decision in percentage of profits to be paid to its shareholders by the

company on the basis of their shares

The company prepares the financial statements like trading and profit or loss

account balance sheet cash budget cash flow statements and fund flow

statement

Financing resources of the organization

The company has the following source of funds

Share capital

Secured loans

Unsecured loans

Total shareholder funds

Cash reserve

NET FIXED ASSETS

Fixed assets are shown at the cost less accumulated depreciation Cost

comprises of purchase price import duties and other nonrefundable takes and any

other directly attributed costs Fixed assets mainly consist of land building plant amp

machinery furniture and fittings equipment motor cars and other vehicles

The company Net fixed assets are worth Rs 70 Crore

CURRENTS ASSETS

Current fixed assets of the company are worth Rs 15 Crore

CURRENT LIABILITIES

The current liability of coca cola (Patna) is Rs 25 Crore annually

NET SALES

The net sales of the company are Rs120 Crore

PROFIT BEFORE TAX

The profit before tax is Rs7 535000- as on Dec 31st 2009

PROFIT AFTER TAX

The profit after tax is Rs6 307000- as on Dec 31st 2009

CAPITAL STRUCTURE The capital structure of the company is Rs 400 Crore

SWOT ANALYSIS OF FINANCE DEPARTMENT

Strengths

Proper recording of accounts by using modern softwarersquos(ie customized

On the basis of requirement funds are required provided by the financial

institutions

Many banks are ready to give loans for the establishment and development

of industry

Weakness

There are a stringent set of financial rules each proposal has to fulfill the

requirement of those rules

Working capital management is not up to the mark lack of co-ordination

between departments

Opportunities

Huge market potential both in domestic and internationally by proper

investment planning

The company can increase their investment opportunity by planned

borrowing

Threats

Not taking measures to reducing production cost adopting proper costing

method may lead to problem

CHAPTER- 5

ORGANISATION SWOT ANALYSIS

Strentghs

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

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

Advertising plays a major in promoting sales of the product The company has

got one of the best advertising strategies Appointing film actors as the brand

ambassadors makes a great impact on the mind of the customers The

company should try to launch more and more advertising and sales

campaigns to promote sales to the maximum

Weaknesses

The company has got a pricing strategy as there is no certainty of rising or fall

of price during the peak season This also hamper the sales of the company

as the retailers and distributor get dilemma whether to place the next order or

not as increase or decrease in price may hamper their profit margin and

blockage of the goods

products including Coca-Cola Therefore people abroad are apprehensive

about Coca-Cola products from India

Opportunities

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 goods of their choice without having to worry much about

the flow of their income The beverage industry can take advantage of such a

situation and enhance their sales have the power of buying

Coca- Cola Company has got more than 300 brands which is running

successfully over the world Thus it can launch some more brands in the

country after studying the demand and desire of the people and can deep its

roots by winning their minds and hearts

As India is said to be one of the biggest market in the world thus the

company survive for long and can expands to its length and width Still there

are thousand of villages which have not been covered by soft drink

companies If the company targets the rural market it can easily make large

profits and thus can also satisfy its aim to benefit and refresh the whole

nation

Threats

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 every now and then is difficult Therefore this

can limit the growth of the Company and pose problems

One of the strong competitors of the company is Pepsi Co thus it has to

formulate such strategies which make it to remain one step ahead and give a

strong competition to the competitors

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 companyrsquos products

Chapter ndash 6

SUMMARY OF FINDINGS AND SUGGESTIONS

It could be seen that ldquoeconomical variablesrdquo highly affects the Cokersquos resolution

Economic factors are those actors who effect the production of any industry So

Coke is not the out of question If the economic conditions of the country is not that

strong and Coke increases its Price in this situation Then it would impact highly

negative And inflation is also not a good position for any countryrsquos production point

of view It also impacts highly negative in the Cokersquos production

The Coca-Cola Company has always believed that education is a powerful force in

improving the quality of life and creating opportunity for people and their families

around the world

Of course business innovation leaves highly good impacts in the business of Coke

As coke use more advance technology in its production process It will result in

increment of their production throughout the country

As far as the ldquogovernmental hindrancesrdquo are concerned the impacts highly bad on

cokersquos production Ever year when budget in announced government taxes rates

always shoot up This approach of government decreases the profit margin of Coke

Coca-Cola has always had a close consumer and supplier relationship with its

customers Its entertaining and colorful advertisements have always and will always

rock the media Indian rock stars sportmen and actors have played a very vital role

in making Coca-Cola such a popular beverage

Coca-Cola is the leading soft drink brand in Patna region amp most selling brand in the

region is Thumps Up Sprite and Maaza

According to most of the outlet owners the product which is seen is sold ie Jo

Dikhta Hai Woh Bikta Hai

Few activation elements like Table Top Glow Shine Board Hanger Road Stand

plays a major role in increasing sell of the soft drink

Conclusion

In this particular city Coca cola is doing well as compared to Pepsi But there are

few mixed outlets too So to increase the market share of Coca cola it should tap all

the mixed outlets About 80 of market is owned by it yet more is expected to be

achieved Coca cola is trying to increase its expansion by

Entering to the Milk segment

Providing the packed Lemon water

Entering to the organized Juice market

Company should take advantage of its positive aspect like rain harvesting and many

social activities Coke is investing a huge amount on advertising it should reduce the

advertising cost and that amount should be used in various promotional offers then

the sell will increase like any thing If sale increase obviously the market share will

also increase

There are few threats that the company should not neglect they are like-

1 People are becoming health conscious hence switching to fresh fruit juice

2 Omfed is also gaining its weightage in soft drink market

3 Amul cool also is increasing its demand

4 Increasing crowd in fruit juice and lassi stalls are alarming

5 It also can introduce vitamin water considering health consciousness of

customers

So considering these problems if Coca Cola Company looks after these problems

and tries to rectify it then definitely coca cola would be the number one company in

the world according to revenue generation where now it holds the fourth position

Suggestions

I can sum the recommendations in brief as follows

Aggressive Marketing

Regular visit to distributors

Sales promotion and advertising to be made more frequent for brand building

Communications should be improved Fulfill the Demand of product by

company In the fieldrsquos sales situation Sales persons work independently and

away from the office

Good communication requires interaction between those preparing and those

receiving reports A good sales reporting system provides both for

communication from the field to office and form office to the field

Sales reports provide data for evaluating performance

Company should make plans for better performance to the sales man

Company should be implement the customers suggestions and complaints

about products service policies price changes advertising companies etc

Company should gather information of competitorrsquos activities Transportation

confers time utility and place utility to the product It determines the

companyrsquos customer service it has also crucial bearing on the other elements

of physical distribution and marketing

Chapter- 7

Learning Experience

I didnrsquot have any idea about the great company like Coca ndash Cola What I had learnt in

my entire 1st year course I realized this practically during my internship programme I

got a chance to deal with corporate citizens In the beginning when I joined here I

was only concerned about the data collection which was interesting Then I was

assigned a project known as Organisation study of HCCBPL I did the project very

carefully which gave a successful outcome

The co-operation by management amp employees is really helpful The project aims at

mainly to increase the market share in low market share areas and to tap the

potential market where our presence is unfelt So that it will create some awareness

in the mind of the people and it can easily identify the problems faced by competitor

counter

This Internship gave me an insight of what the Theory reads and what exactly

happens on the floor I learnt the actual difference between the theories that I study

in its practical applicability in the organization I learnt how the business operates

and exposed to a wide range of company aspects

I also came to know about the importance of the training and development and how

it would help the employee

Now I know fully about manufacturing sector I wish after completion of my study I

may join any organization like Coca-Cola

BIBLIOGRAPHY

TEXT BOOKS

Production and Operation Management

Marketing Management- Philip Kotler

Human Resource Management- K Aswathappa

WEBSITE

wwwgooglecoin

wwwcocacolaindiacom

wwwwikipediacom

Journals

Monthly Circular of Coca-Cola

Scatter Plots

Flow Charts

Check Sheets

Check Lists

This club is for the retailers In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them This material consists of Fridges DPS Boards Glow Sign Boards Display Bottles (500ml 1lt 2lt Commodity Packs Stands Posters etc Depending upon these points retailers are rewarded by certain gifts from the company