A Project Report On

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ACKNOWLEDGEMENT

The work on this project has given me immense knowledge and exposure to the

upcoming trends in the beverage industry. After 9 months of gaining knowledge at

CHITKARA BUSINESS SCHOOL, I am able to provide better justice to my project.

The work on this project is being definitely conducted by me but the project work

bears the imprints of the roles of many people, without whose valuable inputs,

guidelines and suggestion this report would not have seen the light of day.

Mr. Kamal Sharma (MARKETING MANAGER) and Mr. Gurpdeep Saggu (DGM)

gave me time and inputs to help me with the guidance to gain in depth knowledge of

the subject and showed me the path to follow for achieving my objectives of the

internship project.

I am indeed indebted to Mr. Amit Arora (ASM), Mr. Sumit Arora (ASM) and Miss

Preeti Bains (My company guide) and my mentors who gave time to share their

thoughtful criticism and suggestions to improve the work. Their contribution gave me

valuable insights into this project and immense knowledge of the area. In the same

view I would like to mention who have been my mentors and guide and my critics all

the way till here..

This project report could not have been successful without the guidance of DR.

Sandhir Sharma and my mentor Miss Divya Bhutani.

Coca cola is an ideal company for me and the project would be incomplete without

mentioning the indispensable support and cooperation given to me by the official

staff of Coca cola depot in providing my relevant and worthwhile information. The

time spent with them while gaining primary information will always be memorable to

me as it is duty to thank them profusely because of their indispensable inputs without

which my project report would hold no meaning.

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PREFACE

The summer training programs are designed to give the practical knowledge of

corporate world. Training is usually meant for such vocations where advanced

theoretical knowledge is to be backed up by practical experience on the job and it is

because of this reason that summer training programs are designed. So the future

manger must be ready to take the future responsibilities.

It was exactly in this context that I was privileged enough to join coca cola- one of

the biggest brand in beverages in the world.

I achieved lots of experience and confidence over the past twelve week which will

help me to take the future responsibility on my shoulder.

During this period, I was given the task to improve the Market Share of 200 ml pack

size in Chandigarh. In the training program I had tried my level best to arrange the

work in systematic and chronological way.

This endeavour work shall provide the coca cola marketing department, an idea

about market condition. Therefore it hoped with all sincerity that this work shall be of

definite use to the organization.

EXECUTIVE SUMMARY

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In today’s competitive scenario, it is very difficult to show sustainability and constant

profitability. Coco-Cola has been able to be the market leader in the soft drinks industry but

faces tough competition from its market follower, Pepsi. Cola-wars are very popular and

companies have to make sure that each of its variant is doing a good business. This project

was aimed to find the reasons for the reduced sales of the 200ml variant of coca-cola in the

Chandigarh region. For finding the reasons for the diminished sales of this variant, a survey

was conducted with the retailers in Chandigarh using a questionnaire. The data collected

revealed that the most selling SKU is 500ml variant and the major reasons cited by the

retailers for the low sales of the 200 ml variant are lack of awareness among the customers

and the low price difference as compared to 300 ml coke. The retailers do not get any

special incentives on this small variant so they are themselves reluctant to stock it, but the

data reveals that the customers are willing to stock the 200 ml variant as well if the company

gives them some special offers. Also the retailers feel that company is spending less on the

advertisement of this variant due to which the customers are not aware of its availability in

market. This 200 ml variant can be very successful in, colleges and among people who are

conscious about intake of too many calories at a time. Hence this project was successfully

completed over the duration of 3 months where 100 retailers of Chandigarh were personally

surveyed to arrive at the above mentioned findings. Some of the recommendations based on

the collected data are that company should try to increase the awareness of its 200 ml

variant and if possible, should be a gap in the price as compared to the 300ml variant. The

company should devise more incentives and offers to encourage the retailers to stock and

push the sales of this variant to its customers. Some promotional offers can be given by the

company by bundling the bottle with some attractive consumer schemes eg. under the cap

schemes on 200ml coke. This will not just help to increase the awareness of the variant but

also increase the recall of the variant in the minds of the customer. This will help to increase

the contribution of the 200 ml variant to the overall sales of the company, thus increasing the

profitability of the company

PART –A ( COMPANY INTRODUCTION) 9780615392

1. INTRODUCTION OF THE COMPANY 7

2. PRODDUCT PORTFOLIO 8

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3. HISTORY OF COCA COLA…………………………………………………….….. 10

4. MISSION, VISION AND VALUES………………………………………………..... 13

5. VISION 2020……………………………………………………………………..….. 14

6. COCA COLA OPEARTING GROUP…...……………………………………….... 14

7. COCA COLA INDIA………………………………………………………………..…16

8. CONTRIBUTION OF COBO AND FOBO……….…………………..…………….17

9. KANDHARI BEVREAGES PVT. LTD………………………………….………….18

10. BUSINESS MODEL AT KBL………………………………………………...……22

11. MANUFACTURING PROCESS AT KBL….…………………………….……….23

12. CHAIN FOLLOWED FROM MANUFACTURING TO DISTRBUTION…………24

13. ORGANISATIONALL STUCTURE AT KBL……..………………………………25

14. FINANCIAL STATEMENTS OF COCA COLA…..……………………………..26

15. FINANCIAL ANALYSIS……………………........................................………..28

16. SWOT ANALYSIS………………………………………..………………………..30

17. COMPETITORS…………………………………………./.………………………34

18. BATTLE OF BRANDS ………………………………………………….……..….36

19. BEST GLOBAL BRANDS………………………………………………..……… 40

20. COCA COLA UNIT VOLUME GROWTH 2010…………………………………41

21. BCG MATRIX OF COCA COLA…..……………………………………………..41

22. PORTER FIVE FORCES MODEL OF COCA COLA……..……………………42

PART-B PROJECT “MARKET REVIEW OF 200ML SKU’STUDY ON RETAILERS”

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1. ABOUT THE PROJECT………………………………………………………………45

2. OBJECTIVE OF THE PRODUCT…………….……..………………………………47

3. METHODOLOGY ADOPTED…………………………………..………............…..47

4. ANALYSIS AND INTERPRETATION……….………………………………………50

5. PLACEMENT DRIVE.....................................................................….................55

6. FINDINGS………………………………………………………………………………58

7. RECOMMENDATIONS……………………………………………….……………….59

8. RECOMMENDATIONS FOR 200ML SKU……………….……………………….…61

9. LIMITATIONS…………………………………………………………………………..62

10. QUESTIONNAIRE FOR RETAILERS……………………………………………………..63

11. BIBLOGRAPHY………………....…………………………………………………………….65

INTRODUCTION

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.

The Coca Cola Company is a beverage company, manufacturer, distributer, and

marketer of non-alcoholic beverage concentrates and syrups. The company is best

known for its flagship product coca cola, invented by John Smith Pemberton in 1886.

The formula and brand was bought in 1889 by Asa Candler who incorporated The

Coca Cola Company in 1892. Besides the Coca Cola soft drink company offers more

than 500 brands in over 200 countries and servers 1.5 billion servings each day.

The Coca-Cola Company is headquartered in Atlanta, Georgia.. The company

operates a company owned bottling operations (COBO) and franchised distribution

system i.e. Franchisee operating bottling operations(FOBO) from where The Coca-

Cola Company produces syrup concentrate which is then sold to

various bottlers throughout the world. The bottlers, who hold territorially exclusive

contracts with the company, produce finished product in cans and bottles from the

concentrate in combination with filtered water and sweeteners. The bottlers then sell,

distribute and merchandise Coca-Cola to retail stores and vending machines.

The Coca-Cola Company itself is just one small part of an enterprise that brings

more than 500 brands of soft drinks to consumers all over the world. We work with

more than 300 bottling partners and over 20 million customers worldwide to produce,

deliver and sell our drinks. Known as the Coca-Cola system, the relationship

between the company and our bottling partners allows us to conduct business on a

worldwide scale while still maintaining a local approach.

92,800 associates around the world live and work in the markets serve more than 87

percent of them outside the U.S. In this geographically diverse environment, coca

cola learns from each market and share those learning’s quickly. As a result,

Company culture is ever more collaborative..

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Product portfolio of COCA COLA

SOFT DRINKS ENERGY

DRINKS

BEVREAGES JUICES WATER SPORTS

DRINK

TEA AND COFEE

1 COCA- COLA 1.GLACEU

Originated in 1966.

1.FUZE

*Acquired in

2007

1.HI-C

*Originated in

1946.

*12 variants.

1. KINLEY 1.POWE

RADE.

* 1988.

1.MATTE LEAO

*Originated in

BRAZIL IN 1969.

*100 types of tea.

Originated in 1982.

* 12 variants

2.FULL

THROTTLE

Originated in

2004.

* 8 variants.

2.MINUTE

MAID

*Acquired in

1960.

* 2 variants.

2. HI-C BLAST

*11 variants.

2.DASSANI

*Originated

in 1993.

2.FREES

TYLE.

2.GEOGIA TEA

AND COFEE

3.COKE ZERO

* 2004

* 3 variants.

3.MONESTER

*2002

*4 Variants.

3.MAZZA. 3. HI-C SOUR

BLAST

* 3 Variants.

3.VIO 3.EATRH AND

SKY.

4. FENTA

*1942 *Different

flavours

4.RELENTNE

SS

*2006

*3 Variants.

4.ODAWALLA

Originated in

California

acquired in

2001.

5.LIMCA

Originated in INDIA

5.BUZZ.

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Acquired in 1993.

610.SPRITE

*Originated in

GERMANY in1961.

6. BURN

7. THUMS UP

Originated in INDIA

Acquired in 1993

7.POWERPLA

Y

8.OASIS

*FRANCE origin acquired in 1990.

.

9.PIBB XTRA

*1972

10. LIFT

*1970 *15 variants

HISTORY OF COCA-COLA

1886

Coca-Cola' created by Dr. John Pemberton,

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1888-1891

In the course of three years Atlanta businessman Asa Griggs Candler secured rights to the business for a total of about $2,300. Candler became the Company's first president, and the first to bring real vision to the business and the brand.

1895 Candler had built syrup plants in Chicago, Dallas and Los Angeles.

1899

Two Chattanooga lawyers, Benjamin F. Thomas and Joseph B. Whitehead, secured exclusive rights from Candler to bottle and sell the beverage -- for the sum of only one dollar. And then came the first bottling plant of Coca Cola Company.

1905

Coca cola enjoyed in 8 countries worldwide.

1916

They began manufacturing the famous contour bottle.

1920

As the country roared into the new century, The Coca-Cola Company grew rapidly, moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and U.S. territories.

1928

Introduced Coca-Cola to the Olympic Games for the first time when Coca-Cola travelled with the U.S. team to the 1928 Amsterdam Olympics.

1933

Coca-Cola' dispenser introduced at the Chicago World Fair

1960

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Coca cola enjoyed in 163 countries worldwide.

It introduced can in 1960. In 1960, The Coca-Cola Company acquired The Minute Maid

Company, adding an entirely new line of business -- juices -- to the Company.

1961

Sprite was introduced and was originated in WEST GERMANY in response to the ongoing popularity of 7up.

1963

Tab Company’s first diet soft drink is introduced TAB i.e. a diet cola soft drink. The beverage was marketed to the consumers who wanted to keep their “tabs” on weight.

1978

The Coca-Cola Company was selected as the only Company allowed selling packaged cold drinks in the People's Republic of China.

1982

Coca cola enjoyed in 165 countries worldwide. In 1982 diet coke isintroduced.

1985

It was the release of a new taste for Coca-Cola, the first change in formulation in 99 years the first change in formulation in 99 years. In taste tests, people loved the new formula, commonly called “new Coke.” In the real world, they had a deep emotionalattachment to the original, and they begged and pleaded to get it back. Critics called it the biggest marketing blunder ever. But the Company listened, and the originalformula was returned to the market as Coca-Cola classic.

1993

Coca cola enjoyed in 200 countries world PET bottles were introduced. After 17 years Coca Cola returned to India in 1993 after acquiring PARLE

Beverages and brands like LIMCA, THUMS UP, MAZZA and GOLD SPOT became the part of Coca cola product portfolio.

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New beverages joined the Company's line-up, including Powerade sports

drink, Qoo® children's fruit drink and Dasani® bottled water.

2009

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: provide a moment of refreshment for a very small amount of money -- a billion times a day.

THE BOTTLES OF COCA-COLA SINCE 1899

As shown in the picture that glass bottle of coca-cola has undergone many changes since coke started selling in bottles. The first bottle was designed by designer Earl R.

Dean, Root Glass Company of Terre Haute, Indiana, won a contest to design a bottle that could be recognized in the dark The contour bottle, which remains the signature shape of Coca-Cola today, was chosen for its attractive appearance, original design and the fact that, even in the dark,  and so shaped that, even if broken, a person could tell at a glance what it was.

Mission, Vision & Values

Our Mission

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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.

Our 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.

Vision for sustainable growth

.

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

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PROFIT Maximising return to share owners while being mindful of overall responsibilities.

PLANET

Being a responsible global citizen that makes a difference.

PARTNERS

Nurturing a winning network of partners and building mutual loyalty.

PORTFOLIO

Bringing to the world portfolio of beverage brands that anticipate and satisfy peoples' desires and needs

PEOPLE

Being a great work place to work where people are inspires to be the best they can be.

PRODUCTIVITY

Be highly effective, lean and fast-moving organizations.

move swiftly to prepare for what's to come.

We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a sustainable "Roadmap" for winning together with our bottler partners.

With regards to the focus area “Energy Conservation/Climate Change” the company has committed to reduce the overall carbon footprint of its business operations by 15 percent by 2020, as compared to a 2007 baseline.

COCA COLA OPERATING GROUP

Ahmet C. Bozer President, Eurasia & Africa Group

Dominique Reiniche President, Europe Group

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José Octavio Reyes President, Latin America Group

J. Alexander M. Douglas, Jr. President, North America Group

Glenn G. Jordan S. President, Pacific Group

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COCA COLA IN INDIA

Coca-Cola, the corporation nourishing the global community with the world’s largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thums up to the Indian soft drink market. In the same year, the Company took over ownership of the nation’s top soft-drink brand and bottling network. It’s no wonder our brands have assumed an iconic status in the minds of the world’s consumers.

A Healthy Growth to The Indian Economy

Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels. Coca-Cola India is among the country’s top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations.

With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system.

There are 2 operations in INDIA

COBO

Company owns bottling operation

Comes under HCCBPL. (Hindustan Coca- Cola Beverages Private Limited).

FOBO : -

Franchise owns bottling operations.

13 franchise bottlers across INDIA.

.

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COBO FOBO

Contribution of COBO and FOBO in the production and distribution of Coca Cola

products.

65%

35%

Contribution

COBOFOBO

Source: www.cocacolaindia.com

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KANDHARI BEVREAGES PVT.LTD. (KBL)

KANDHARI GROUP was established in 1967 by Late Mr. Teja Singh Kandhari, is presently a progressive business house in India. The group’s first venture was a bottling unit as a franchisee of PARLE’s soft drink manufacturing “ Gold Spot” from PARLE established at Amritsar in the north Indian state of Punjab.

Over a period of time, the Group ventured deep into Aerated Water business and expanded its scope of operations to other Indian states including Punjab, Haryana, Chandigarh and Himachal Pradesh. 

In 1993, the world renowned soft drink giant - Coca-Cola entered India and bought over PARLE brand of soft drink products, being one of the star bottlers of PARLE the Group

switched to manufacturing, bottling & marketing of Coke brand of soft drink products.presently a progressive business house in India. The group’s first venture was a bottling unit as a franchisee of PARLE’s soft drink manufacturing “ Gold Spot ” under license from PARLE established at Amritsar in the north Indian state of Punjab. Now the KBL works as franchisee owned bottling operations of Coca cola.

Growth Record

From a very humble beginning in 1967, today the Group turnover aggregates to Rs. 800 Crore approx. The Group provides gainful employment to about 3000+ strong workforce. 

The Group companies are fully conscious of their socio- economic responsibilities and have taken up a series of community development programs especially the  funding & setting up of Rain harvesting projects to conserve the scarce natural resource i.e. water. A number of such projects have been financed by Group companies in Udyog Vihar, Gurgaon; DLF Gurgaon & Faridabad in Haryana as also some areas of Punjab.

The foremost achievement of the Group is the strict adherence to system oriented quality production along with financial discipline, leading to consistently increasing sales graph and an unblemished track record of dealings with FIs/banks. 

Although soft drink business still remains core activity of the Group, yet sensing increased focus on industrial activity in India, the Group has ventured out into other infrastructural projects of prime importance like Power & Energy generation from non-conventional resources and mining.

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Manifesto Of Growth:

OUR MISSIONIn line with our main partner Coca Cola we wish to refresh the world and in addition we further aim to create value and make a difference by making our environment a cleaner and better place to live for our future generations.

OUR VISION

Our Company vision as was established by the founder of our Group remains to provide the people that work in the group, be it the owners or managers a great place to work where people are inspired to be the best they can be and work with quality brands and Partners to maximize profit and productivity.

Group Companies:

Kandhari beverages Pvt. Ltd., Nabipur Punjab , Baddi Himachal Pradesh.

Versatile Polytech Pvt. Ltd., Gurgoan , Haryana. Heritage beverages Pvt. Ltd,. Gurgaon, Haryana. Universal Electronics & Communications Pvt. Ltd., Gurgoan,

Haryana. Farmers Diary Products (INDIA) Pvt. Ltd. Day and Night news channel, Chandigarh.

Kandhari beverages Pvt. Ltd.

The Company is engaged in the business of manufacturing, marketing and distribution of aerated water under franchise agreement with the Coca-Cola

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Company, USA. The Company has two mega greenfield bottling plants for filling soft drinks located at Village Nabipur, District Fatehagarh Sahib (Punjab) and Village Katha, Baddi, District Solan (HP). Present gross turnover of the company is approx Rs. 190.00 Crores.

The company has also entered the power sector by setting up a 6.25 MW Wind Mill project having 5 units in the State of Maharashtra. 

Figure 1 manufacturing plant in village Nabipur .Punjab

Heritage Beverages Pvt. Ltd,. Gurgaon, Haryana

 The Company is presently engaged in the business of manufacturing corrugated cartons of various sizes. The company has recently put up a most modern and fully automatic 3- Ply Corrugated cartons manufacturing unit at Gurgaon with a capacity to manufacture about 45,000 cartons per day. The company is further diversifying its operations and is venturing into the business of manufacturing and marketing PET Preforms of various sizes.

The new Preform Unit is expected to go into stream by and by Dec’ 2009. The company is expected to achieve a turnover of Rs. 45 Crore during 2010-11.

Versatile Polytech Pvt. Ltd., Gurgoan , Haryana

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The Company was established up in 2004 for manufacturing PET Preforms which are blown into PET bottles used for filling aerated water and mineral water. The latest trend in soft drink business towards increased usage of PET bottles viz-a-viz conventional glass bottles augers well for this unit. The most modern state of art technology manufacturing unit located at Jammu achieved turnover of Rs. 36 Crores during 2008-09. This unit has recently doubled its manufacturing capacity by

taking over an overseas existing PET Preform manufacturing unit and is expected to achieve a turnover of Rs. 50 Crores during next year. 

Farmers Diary Products (INDIA) Pvt. Ltd.

The Company is a modern and high-tech diary farming unit with a high breed imported cows with an investment of over Rs. 12.50 Crores. The Company is the first dairy farm in the Corporate Sector across the Country. The Company provides high quality international quality milk and milk products to the residents of Chandigarh and surrounding areas. 

      Thus having established itself well in soft drink sector, the Group is diversifying itself and making forays into other industrial activities of prime importance.

Universal Electronics & Communications Pvt. Ltd., Gurgoan, Haryana.

The Company is engaged in the business of manufacturing and marketing CE marked Electrical & Telephone Accessories since 1993. Its main market is the United Kingdom. The Company has state of the art Plastic Injection Moulding machines, power presses and in house Tooling  facilities. Besides UK market the

company had been making products for leading Indian brands like CRABTREE of Havells ; Sukam Invertor ; HPL Socomec etc.

Day and Night news channel, Chandigarh.

Kanwar Sandhu has put in his papers as Resident Editor at Hindustan Times Chandigarh, after a nine-year stint. He is setting up a new regional news and

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Customers

Regional Bottlers COBO/FOBO

Coca-Cola India Division

Manufactures finishedBottles/FountainSyrup.

ManufacturesConcentrate, Beveragebase and Syrup

Consumers

entertainment channel, ‘Day ‘n’ Night News’ along with Kansan News Pvt Ltd, and kandhari group Chandigarh and will also be the Channel Head. Meanwhile,.

Day ‘n’ Night News channel will be catering to Punjab, Chandigarh, Himachal Pradesh, Haryana and Jammu & Kashmir. Commenting on setting up a new venture amid the current economic slowdown, Sandhu said, “Despite the slowdown, I feel there really is a need for a news and entertainment channel in this region. Work on this channel has been in the pipeline for the past six months to one year.”

He further said, “The exact date for the launch has not been finalised yet, but we are looking at launching the channel in early July. It will be a 24-hour news and entertainment channel. We will have a clear focus on the NRI population as the hunger for news back home is always there. We are tying up with a channel in North America the share the news there and vice-versa”.

Business Plan Model At KBL

Manufacturing Unit Of KBL, Nabipur , Punjab.

The manufacturing unit of KBL, situated at Nabipur, Punjab is one of the largest

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Franchisee owned bottling operations plant of coca cola. The Planthas two PET line which has the capacity of yielding 150 bottles, per minute,of 1.25 L PET and 120 bottles per minute of 2L PET and one RGB (Returnable glass bottles) lines which yields 600 bottles per minute each and. It caters to the whole of Chandigarh Mohali, Panchkula, fatehgarh sahib district Punjab and few other towns of Punjab ,Simla and Manali belt in Himachal Pradesh. There are depots in Chandigarh panckula and mohali.

Manufacturing Process At KBL

Manufacturing Process

The manufacturing of the products of Coca-Cola involves the following

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steps:

Water is received from 350 ft beneath the earth surface and it passes through th water treatment plant, further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.

In the syrup room, the concentrate received from another bottling plant situated at Pune, is blended with the sugar syrup

Once both the water and the final syrup are ready, they are both mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product.

On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and washed for the purpose of filling in the final product in it. This step does not take place in the PET bottle line as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB) capped (in case of PET bottles), labelled and cased in order to be sent into the warehouse for distribution.

CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

CHAIN FOLLOWED FROM MANUFACTUE TO DISTRIBUTER

Organisational Structure at KBL

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PurchaseDept.

Store Keeping Department.

Production & Packing

Department.

WarehouseDepot's

DistributorsAgents

Retailers

C E O

Ashish Sethi

Financial statements….

Particulars Amount Amount

ASSETS April 3,2009 March 31,2008

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General Manager

Eesh Stehi

Vice-President

Jaspal Bhatia

SGA Manager Satinder Singh

Sales Manager Pragraj Khanna

Marketing Manager Mohnish Mehta

Market Research Executive

Preeti Ramna

DGM

Gurdeep Saggu

Astt Sales Manager

Sr. Sales Executive

Sales Supervisors

Team Leaders

Market developers

Salesman

Market Execution Manager

Kamal Sharma

CURRENT ASSETS

Cash and cash equivalents $6,816 $4,701

Marketable securities 263 278

Trade accounts receivable, less allowances 3,139 3,090

Inventories 2,298 2,187

Prepaid expenses and other assets 2,198 1,920

TOTAL CURRENT ASSETS 14,714 12,176

INVESTMENTS

Equity method investments: 5,316

Coca-Cola Hellenic Bottling Company S.A. 1,386

Coca-Cola FEMSA, S.A.B. de C.V. 840

Coca-Cola Amatil Limited 680

Coca-Cola Enterprises Inc.

-

Other, principally bottling companies and joint ventures 2,410

Other investments, principally bottling companies 441 463

TOTAL INVESTMENTS 5,757 5779

OTHER ASSETS 1,793 1,733

PROPERTY, PLANT AND EQUIPMENT — net 8,425 8,326

TRADEMARKS WITH INDEFINITE LIVES 6,042 6,059

GOODWILL 3,988 4,029

OTHER INTANGIBLE ASSETS 2,384 2,417

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TOTAL ASSETS $43,103 $40,519

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable and accrued expenses $5,651 $6,205

Loans and notes payable 6,701 6,066

Current maturities of long-term debt 461 465

Accrued income taxes 356 252

TOTAL CURRENT LIABILITIES 13,169 12,988

LONG-TERM DEBT 5,017 2,781

OTHER LIABILITIES 2,944 3,011

DEFERRED INCOME TAXES 865 877

THE COCA-COLA COMPANY SHAREOWNERS' EQUITY

Common stock, $0.25 par value; Authorized — 5,600 shares 880 880

Capital surplus 8,021 7,966

Reinvested earnings 38,911 38,513

Accumulated other comprehensive income (loss) -2,893 -2,674

Treasury stock, at cost -24,207 -24,213

EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 20,712 20,472

EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 396 390

TOTAL EQUITY 21,108 20,862

TOTAL LIABILITIES AND EQUITY $43,103 $40,519

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Financial Highlights OF FIRST QUARTER 2010

First quarter 2010 reported net revenues increased 5%. Net revenues increased 1% on a comparable currency neutral basis, reflecting a 2% impact due to the deconsolidation of certain entities required by a change in accounting guidance, as well as geographic mix.

First quarter 2010 reported operating income increased 17%, and comparable currency neutral operating income increased 9%. This was driven by a continued strong focus on cost management and the leveraging of productivity initiatives as well as favourable timing of selling, general and administrative expenses.

Cash from operations in the quarter increased 52% to $1.3 billion. There were no share repurchases during the first quarter due to the pending Coca-Cola Enterprises (CCE) transaction.

During the quarter, the Company announced its 48th consecutive annual dividend increase, raising the quarterly dividend 7% from 41 cents to 44 cents per common share. This is equivalent to an annual dividend of $1.76 per share, up from $1.64 per share in 2009.

Financial Analysis COCA COLA

Revenue, Earnings, Cash Flow, and Margins

Coke has had great performance over the past few decades, and highlighted here is their respectable performance over the past three years.

Revenue GrowthYear Revenue

2009 $30.990 billion

2008 $31.944 billion

2007 $28.857 billion

2006 $24.088 billion

Over the past 3 years, Coca Cola has had a respectable 8.7% in annual revenue growth. Between 2006 and 2007, Coke grew revenue by 20%, and between 2007 and 2008, they grew revenue by over 10%. 2009 saw a decrease in revenue (and a decrease in advertising, according to their 2009 annual report), but they continued to grow profits and cash flow.

28

EarningsGrowthYear Earnings

2009 $6.906 billion

2008 $5.807 billion

2007 $5.981 billion

2006 $5.080 billion

Coke has enjoyed nearly 11% annual earnings growth over the past three years. The most recent year, from 2008 to 2009, saw a 19% increase.

Analysts predict 11.4% EPS growth in 2010 and 9.6% EPS growth in 2011.

Cash Flow GrowthYear Cash Flow

2009 $8.186 billion

2008 $7.571 billion

2007 $7.150 billion

2006 $5.957 billion

Annually, that’s a cash flow growth rate of over 11%.

Net Profit MarginCoca Cola currently has an impressive 22% net profit margin. Pepsico only has a 14% net profit margin, mostly because their non-beverage products like Frito-Lay chips have drastically lower margins. Hansen Natural, a smaller beverage company competing with Coke, has an 18% net profit margin. Coke runs the show here.

Dividend Growth

Coca Cola has increased their dividend for 48 consecutive years. This puts them near the top of the dividend aristocrat list. The stock currently yields 3.26%, and they’ve raised their dividend by 7.3% this year.

29

Dividend Growth

Year Dividend Yield

2009 $1.64 $3.28%

2008 $1.52 3.04%

2007 $1.36 2.50%

2006 $1.24 2.80%

Coke has grown stock dividends by 9.7% over the past three years. The most recent increase, from 2009 to 2010, was a 7.3% increase. The payout ratio is a moderate 56%, so the dividend is safe for a while and has room to grow.The company has also been repurchasing shares annually. In 2009, they repurchased $1.5 billion worth of shares.

.

SWOT ANALYSIS

Strengths

Weakness

INTERNAL

-World leading brand

-Strong financial base

-customer loyalty

-Strong relations with the sports world.

– Marketing strategies with local consumer in mind.

-Advertising only for popular products.

-Lack of popularity of many Coca Cola’s brands. Mostly unknown and rarely seen.

-Health issues.

Opportunities

30

Threats

EXTERNAL - Increase in demand of packed water bottle and extraordinary profits are available in bottled water industry.

- Diversification for other business like Food and snacks.

- Increase product portfolio in the non- carbonated drinks market.

- Changing health-consciousness attitude.

- India has one of the lowest per capita consumption of cola which also reflects the potential for growth.(data mentioned below).

- Commodity prices growth

- The new "healthy" and organic food trends

- Strong competitors penetration in the non carbonated drinks market.

- Changing health-consciousness attitude.

Strengths-

Coca Cola is a world leading company worldwide , Popularity is one of its superior strengths that is virtually incomparable.   Without a doubt, no beverage company compares to Coca Cola's social popularity status.

Another strength that is very important to Coca Cola is customer loyalty. The 80/20 rule comes into effect in this situation. Eighty percent of their profit comes from 20% of their loyal customers. Many people/families are extremely loyal to Coca Cola. During our research it was found that consumers of competitor are ready to substitute it for a coca cola but the consumers of coca cola are very loyal to the brand and doesn’t prefer to switch for substitute.

The financial statements of the company shows that First quarter 2010 reported net revenues increased 5% and Coca Cola declared an increase in  their dividend for 48 consecutive years. Company being financially strong is always a strength as it can

invest more money in R & D and increase the advertising and marketing budgets.

Weakness  

31

Advertising done only for popular products and many brands are not even known to

the consumers due to lack of advertising done by the comapny.

Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Cola’s drinks. Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types. Most are unknown and rarely seen for available purchase. These drinks do not probably taste bad, but are rather a result of low profile or non existent advertising. This is a weakness that needs to be looked at when analyzing their company.

Another weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like coke is not very beneficial to your body and your health. With today’s constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the product that are labelled detrimental to you health.

Opportunities

Water Shortage and Health Awareness Driving Bottled Water Consumption in India. The Indian packaged water business is estimated at around Rs 2,500 crore with a growth rate of close to 35 per cent. While India ranks in the top 10 largest bottled water consumers in the world, its per capita per annum consumption of bottled water is estimated to be five litres which is comparatively lower than the global average of 24 litres. Today it is one of India's fastest growing industrial sectors. Between 1999 and 2005, the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent - the highest in the world. The study, conducted by the US-based Earth Policy Institute, says the global consumption of bottled water has grown by 57 per cent over the past five years.

Changing health consciousness attitude derives an opportunity for coca-cola to introduce more of non-carbonated beverages. The market share of non carbonated drinks is expanding at a fast pace and world leading beverage company should launch new health drinks and even launch COKE ZERO i.e. coke with zero sugar and zero calories worldwide.

The Per Capita Consumption Of Coca Cola Beverage Products.

32

INDIA CHINA RUSSIA MEXICO0

20

40

60

80

100

120

140

160

180

0.720000000000001 1.9 2.9

102.2

2.167.7

14.2

160

19982009

Figures are in Litres

The above chart shows per capita consumption of coca cola products in INDIA was 0.72 L in 1999 and 2.16 L in 2009. India has one of the lowest consumption and shows the potential to grow. The maximum coke consuming country is MEXICO where per capita consumption in 1999 was 102.2 L and 160L in 2009.

Threats

The prices of raw materials are increasing on a global platform which leads to increase in the prices of the final products which has been a constant threat and coca cola should look for the substitute of the goods which could be available for less price.

Health conscious attitude is an opportunity as well as a threat to the company because coca cola is a major player in carbonated drinks and doesn’t possess big names in the product portfolio of juices segment. The company should look this as an opportunity to evade the threat.

Even the strong presence of competitors in juices segment poses a big threat to coca cola as in india Dabur. Real juices and Pepsi Tropicana are strongly penetrated into the juice segment.

33

COMPETITORS TO COCA COLA

The competitors to the products of the company mainly lie in the non alcoholicbeverage industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends for the World's # 2, carbonated softdrink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafinawater. 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.

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 competitionto Maaza and the latest product Minute Maid Pulpy Orange.

A pioneer in the Indian industry, Parle Agro is associated with many firsts. They were the first to introduce fruit drinks in tetra packaging, first to introduce apple nectar adding brands

like Frooti, consi, Appy, Appy Fizz and packaged drinking water, Bailley. Parle agro is another big competitor to coca cola as Parle products viz, frooti, appy fizz, LMN is a direct competitor to coke’s mazza, fenta apple, nimbu fresh respectively.

34

Comparison of the Logos of Pepsi and Coke:

35

BATTLE OF BRANDS

Market share comparison among Coca-cola and other brands in various segments.

38%

18%

44%

COLA Maket share

PEPSITHUMS-UPCOCA-COLA

Figure 2 FIGURES FOR 2009

SOURCE AC Nielson

A. Cloudy lemon FIGURES FOR JAN-MAR 09

LIMCA MIRINDA LEMON0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%10.90%

0.90%

CLOUDY LIME

SOURCE AC NELSON

36

B. ORANGE SPARKLING DRINK.

FENTA MIRINDA0%

2%

4%

6%

8%

10%

12%11%

9%

ORANGE

FIGURES JAN-MAR 09

SOURCE AC NELSON.

C. Clear Lime

SPRITE 7 UP MOUNTAIN DEW0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

15.30%

8.90%

3.50%

CLEAR LIME

FIGURES JAN-MAR -09

SOURCE AC NELSON.

D. Fruits Drink.

37

13%

38%

21%

27%

MARKET SHARE OF FRUIT DRINKS

FROOTICOKEPEPSIOTHERS

Coke 38% share includes 36.2% for Mango Maaza and 1.2% for Minute Maid.

PEPSI 21.40% share includes 17.8% Slice Mango,2.4% Tropicana premium, 0.5% Tropicana 100%, 0.3% Tropicana twister apple, 0.2% Tropicana twister orange, 0.2% Nimbooz.

FIGURES FOR JAN-MAR 09 SOURCE AC NELSON.

E. Packed Drinking Water.

KINLEY AQUAFINA BISLERI7.50%

8.00%

8.50%

9.00%

9.50%

10.00%

10.50% 10.30%

9.80%

8.70%PACKED WATER

FIGURES FOR JAN-MAR 09PACKED WATER FIGURES ONLY FOR RETAIL SEGMENT; SOURCE AC NELSON.

THE BATTLE OF NIMBU PANI”

38

Compare that with the juice and juice-drinks market estimated at about 660 million cases by volume, of which packaged juices have only captured 90 million cases. And of the 570 million-cases in the fresh juices category, 49% is accounted for by the lemon segment. While the Rs 7,500-crore overall beverages category is growing at 20-22%, nimbu pani per se is estimated to be growing at more than double that rate. 

As per a report by the Tata Strategic Management Group, health and wellness beverages category in the country are likely to grow 22% YOY from Rs 6,200 crore to Rs 17,350 crore by 2014-15. 

The challenge, therefore, is not to battle each other so much but to convert consumers from drinking home-made or vending-carts-made nimbu pani to packaged offerings, and so for obvious reasons, the advertising propositions have been made as ‘desi’ as possible. 

PepsiCo is pushing its Nimbooz as ‘ekdum asli Indian’ and prominently shows a traditional wooden squeezer. Coca-Cola’s Minute Maid is being built on the ‘bilkul ghar jaisa’ (just like home) tagline. 

Category conversion aside, shelf-life is a big challenge for Nimbu pani–which tends to acquire a bitter after-taste if kept unconsumed for long. So PepsiCo, for example, has used ‘hot fill’ technology to increase shelf life of Nimbooz to about four months. 

Coca-Cola’s Minute Maid Nimbu Fresh, though the newest entrant, is benchmarking its strategy on pricing to catch up with Nimbooz and LMN. It launched 400-ml packs of Nimbu Fresh at Rs 15 each, and one-litre bottles for Rs 40 each. This is in contrast to pricing of Nimbooz–200-ml and 350-ml bottles priced at Rs 10 and Rs 15 respectively. 

LMN, on the other hand, was rolled out in 500-ml PET bottles at Rs 23 and in 200-ml cartons at Rs 10. It is also available in 110ml packs at Rs 5, 250-ml PET at Rs 12 and 1 litre PET packs at Rs 36. 

BEST GLOBAL BRANDS 2009

39

2009 Rank

2008 Rank

BrandCountry of Origin

Sector2009 Brand Value ($m)

Change in Brand Value

1 1 United States Beverages 68,734 3%

2 2 United States Computer Services 60,211 2%

3 3 United States Computer Software 56,647 -4%

4 4 United States Diversified 47,777 -10%

5 5 Finland Consumer Electronics 34,864 -3%

6 8 United States Restaurants 32,275 4%

7 10 United States Internet Services 31,980 25%

8 6 Japan Automotive 31,330 -8%

9 7 United States Computer Hardware 30,636 -2%

10 9 United States Media 28,447 -3%

23 26 United States Beverages 13,706 3%

40

Coca Cola Unit Volume Growth In 1st Quarter Of 2010.

INDIA

TURKEY

BRAZIL

LATIN

AMERICA

FRANCE

GERMANY

0%

5%

10%

15%

20%

25%

30%

35%

29%

18%

12%

4% 5%

2%

UNIT VOLUME GROWTH IN 1ST QUARTER 2010

SOURCE www.thecoca-cola.com

HIGH BCG MATRIX OF COCA COLA INDIA

HIGH MARKET SHARELOW

41

STARS

Coca cola Thums-up Mazza

COWS

Limca Fanta

DOGS

Georgia coffee

?

Miunte Maid Kinley water

PORTER’S FIVE FORCES MODEL

Coca cola five forces model

Traditional competition

Prices of PEPSI and local brands Increasing market share of competitor non-carbonated products. Promotional actions of competitors.

New entrants

Potential entry of new competitors is also the factor to intense the competition in the industry. Barriers to entry, however can restrict the firms from entering the market, more number of entry barriers will make it difficult for the new entrants to exploit the opportunity of new   market .

Coca cola and other companies have intimate relation with their retail channels and would be able to defend their positions effectively through discounting and other tactics.

New entrants will need to overcome the tremendous marketing muscle and market presence of coca cola.

42

Competitive rivalry within the industry

HIGH

Threat of new entrants

LOW

Bargaining power of suppliers

LOW

Bargaining power of Buyers

HIGH

Threat of substitutes

MEDIUM

Bargaining power of suppliers

Main inputs for coca cola that are purchased for different suppliers are sugar and packing cartons.

Sugar and Packing cartons– Many sources available in the open market. Direct negotiations from concentrate producers with the suppliers in order ensure reliable supply, faster dilevery, lower prices.

Thus the bargain power of suppliers is low.

Bargaining power of buyers

Bargain power of buyers is high as a result of intense competition in both branded and non branded products.

Bulk and continuous purchasing power of shops, bars, supermarkets.

Substitutes

The substitutes are tea, coffee, juice, bottled water, milk, local drinks, energy drinks, sports drinks, smoothies etc.

These substitutes have occurred due to change in health conciseness attitude and also due to continues increase in prices of beverages.

Substitute products are becoming more problem and market share of these have increased drastically which a threat to coca cola.

43

PART – B

PROJECT

MARKET REVIEW OF 200ML SKU’ STUDY ON RETAILERS.

About The Product

44

A survey conducted by CCI in 2001 revealed that 300 ml bottles were not popular with rural and semi-urban residents where two persons often shared a 300 ml bottle. It was also found that the price of Rs10/- per bottle was considered too high by rural consumers. For these reasons, CCI decided to make some changes in the size of its bottles and pricing to win over consumers in the rural market. 

In 2002, CCI launched 200 ml bottles (Chota Coke) priced at Rs 5. CCI announced that it would push the 200 ml bottles more in rural areas, as the rural market was very price-sensitive. It was widely felt that the 200 ml bottles priced at Rs. 5 would increase the rate of consumption in rural India. Reports put the annual per capita consumption of bottled beverages in rural areas at one bottle as compared to 6 bottles in urban areas.

Acceptability

The initiatives of CCI in distribution and pricing were supported by extensive marketing in the mass media as well as through outdoor advertising. The company put up hoardings in villages and painted the name Coca Cola on the compounds of the residences in the villages. Further, CCI also participated in the weekly mandies by setting up temporary retail outlets, and also took part in the annual haats and fairs - major sources of business activity and entertainment in rural India.

CCI also launched television commercials (TVCs) targeted at rural consumers. In order to reach more rural consumers, CCI increased its ad-spend on Doordarshan

The company ensured that all its rural marketing initiatives were well-supported by TVCs. When CCI launched Chota Coke in 2002 priced at Rs. 5, it bought out a commercial featuring Bollywood actor Aamir Khan to communicate the message of the price cut and the launch of 200 ml bottles to the rural consumers. 

In the summer of 2003, CCI came up with a new commercial featuring Aamir Khan, to further strengthen the Coca-Cola brand image among rural consumers. The commercial aimed at making coke a generic name for ‘Thanda.’

The three commercials showed progression in associating ‘Coke'with ‘Thanda'in a rural/semi-urban context. In the first commercial the connection of Coke with Thanda was made, in the second one there was a subtle difference, with the shopkeeper asking customers to ask for Thanda instead of Coke, and the third commercial showed that when one asked for Thanda, one would get Coke.

45

CCI claimed all its marketing initiatives were very successful, and as a result, its rural penetration increased from 9% in 2001 to 25% in 2003. CCI also said that volumes from rural markets had increased to 35% in 2003. The company said that it would focus on adding more villages to its distribution network. For the year 2003, CCI had a target of reaching 0.1 million more villages. Analysts pointed out that stiff competition from archrival PepsiCo would make it increasingly difficult for CCI to garner more market share. 

PepsiCo too had started focusing on the rural market, due to the flat volumes in urban areas. Like CCI, PepsiCo too launched 200 ml bottles priced at Rs. 5. Going one step ahead, PepsiCo slashed the price of its 300 ml bottles to Rs 6/- to boost volumes in urban areas.

46

OBJECTIVE OF THE PROJECT

Primary Objectives.

To know the reason behind low MARKET SHARE of 200ml variant.

To increase the placement of the 200ml variant.

Secondary objective

To increase the retail outlets for coca cola.

METHODOLOGY

Route Visit for Sales & Marketing

Method of Data Collection

Research Instrument

Area of Sampling

Sample Size

Sampling Procedure

Research Methodology

47

Route Visits for Sales & marketing:

I visited the routes with the MD or Company’s Sales executive and Sales managers. There I observed the display norms for outlets in all route & each type of outlet. Every morning I went to one corresponding route & observed all techniques of selling product to retailers also try to know the mentality of the consumers and retailers. I visited following sectors in Chandigarh: 1. Sector 38 17. Sector 33

2. Sector 38 west 18. Sector 34

3. Sector 40 19. Panjab University.

4. Sector 35 20. Various colleges in

5. Sector 18 Chandigarh.

6. Sector 19 21. Sector 7

7 Sector 20 22. Sector 8

8. Industrial Area ph-2. 23. Sector 9

9. Sector – 47 24. Sector 10

10. Sector 48 25. Sector 11

11. Sector 49 26. Sector 12

12. Sector 22, 23

13. Sector 24

14. Sector 30

15. Sector 31

16. Sector 32

48

Data Collection I have collected two types of data:

1- Secondary Data

2- Primary Data

1.Secondary Data Collection:-Secondary data was collected during the initial days of the project to have a better understanding of the company and project title. Secondary data was collected from various sources like companies past records, google, various magazines, and books.

2. Primary Data Collection:- Here survey method of data collection is adopted which is very suitable to reach the researchers motto.

Research Instrument: - Printed questionnaire was used as the research instrument to collect the required information.

Area of Survey: - The survey was conducted in various sectors throughout Chandigarh.

Sampling Plan: - Sampling plan consists of:

Sampling Unit: - The retailer of grocery shop, convenience store, E&D1, E&D2.

Sample Size: - For this study I have taken sample size of 100 respondents

Sampling Procedure: - Simple Random sampling procedure was followed.

Sampling Method: - Data were collected by retailer survey. The retailers are directly contacted and interviewed at their retail counter.

49

ANALYSIS AND INTERPRTATION

Types of shops surveyed.

Grocerry; 25

Convienence; 27E & D 1; 20

E & D 2; 28

No. Of Outlets Surveyed

GrocerryConvienenceE & D 1E & D 2

As shown in the chart the data is collected from all sorts of outlets where coca cola is sold.

Most Selling SKU’s at Different Counters.

300ml; 30%

500ml; 40%

1.25L; 8%

2 L; 22%

Sales

300ml500ml1.25L2 L

50

As shown in the above chart the highest selling SKU at most the shops is 500ml pack and in order to increase the sale of 200ml variant we have to target these 30% shops wherein the highest selling SKU is 300ml.

Consumers of Soft drinks Based On their Age-Groups

10 - 15 16 - 25 25 - 40 40 >0

5

10

15

20

25

30

35

40

45

50

19

44

34

3

According to the above chart it has been observed that the customers of soft drins at most shops is in the age group from 16-25, 25-40. So in order to push the 200 ml variant it would be beneficial to give a consumer scheme focusing the above mentioned age group in mind.

Retailers were asked to cite the reasons for not keeping the 200ml variant stock to which it was found that :

48% of the retailers said that they don’t prefer to keep the stock due to lack of demand of this SKU at their counter.

24% of the retailers stressed that the storage capacity of their visi-coolers is not enough to accommodate so many variants of different products.

Few retailers as of 8% said that salesman doesn’t inform them about the availability of 200ml.

51

12% were the retailers who were not happy with the irregular supply of

200ml. 8% retailers were such who don’t want to keep RGB stock at their

shops.

Contributions of soft drinks in the total sales of retailers

< 10% 10% - 20% 20% - 30% 30% & above0

5

10

15

20

25

30

35

40

45

50

12

44

36

8

As shown in the above chart the soft drinks make a very significant contribution in the total sales of any counter. There are 44 shops in which soft drinks contribute 10% – 20% of their sale and 36 shops which made 20% -30% contributions. An important fact came out was, where the contributions i.e. is in shops they majorly sell 300ml SKU, mostly in the category of E&D 2.

52

The Retailer were asked if the consumer now-a-days seems to be unaware of the availability to 200 ml to which it was found

YES NO0%

10%

20%

30%

40%

50%

60%

70%

61%

39%

Un-awarness

:

As shown in the chart 61% of the consumers according to the retailers is un aware about the availability of 200ml, which is not a good sign for this variant. The coke as a company has to look in and do some promotional activities to enhance the consumers awareness. It has to catch more eye-balls for the awareness to increase.

Major reasons citied by the retailers for the un-awareness or less demand of 200ml variant.

36% of the retailers said that majorly it is due to very less or no advertisement of this variant.

27% of the retailers were of the view that price difference between 200ml and 300ml is very negligible to which consumer is in indifferent and goes for the option to buy 300ml.

31% retailers believe that consumer is highly satisfied with the quantity of 300ml and in the scotching heat 200ml may to be able to quench the thirst and suggested to float the stock in winters of 200ml variant.

Few retailers as of 8% said no extra benefits are given to the retailer to push the non-productive variant in the market.

53

Factors that could affect to increase the sale of 200ml by the

retailers.

38% of the retailers were of the view that the availability of this variant has to be increased through different daily schemes.

23% said that increasing display will help to turn on the sale of 200ml. 18% said more advertisement should be given in the newspapers or

hoardings should be fixed at prime locations displaying 200ml. Reducing MRP was another suggestion given by the retailer as many of

retailers feel the price difference between 200ml and 300ml is very negligible so to cite some difference in the two brand packs price difference will play an important role.

Retailers were asked if they would be attracted to keep the stock of 200ml if special schemes were given only for this variant. To which;

YES NO0%

10%

20%

30%

40%

50%

60%

70%

59%

41%

As shown in the above mentioned chart 59% of the retailers are keen to keep the 200ml stock if some additional benefits are given. So as to push the stock n the market, increase availability why not give some additional schemes to push the product.

54

THE PLACEMENT DRIVE

During the project time the placement to done in the following outlets:

Sector 7-

1. Bansal store.2. Subhash deptt store3. Walia tea.

Sector 8

1. Eating pont 2. Ram sumu pan3. Pratap garh conf.

Sector 9

1. Jai shahkundri prov store

Sector 10

1. Laxmi store2. Capital bakers3. Om prakash traders

Sector 16

1. Sharma conf.2. Sharma juice bar3. S. lal conf.

Sector 17

1. Haryana canteen2. Muskaan,,3. Snack bar (b.stand)4. LIC canteen5. Rahul store6. Shud vaishnu dhaba

Sector 19

55

1. Verka booth2. Bedi sons3. Kesari sweets4. New kesari sweets5. Nanak sweets

Sector 20:

1.Mahajan departmental store .

2.Chawla tea stall.

3.Kapoor sweets.

Sector 40

1. Medi zone2. Rajan khana3. Malothra snacks4. Amar sweets5. Dhingra sweets6. Gopu ram prov store

Sector 41

1. New milkmade store2. Tanu juice bar.3. Punjab diary

Sector 42

1. govt college2. Ashoka traders

Sector 44

1. Bansal stores2. Sharma tea stall3. Chawla provision4. Ajay karyana5. Dharmpal conff.6. Dil bahar juice bar7. Mohan sweets8. Himachal conff9. Bholley di hatt

56

Sector 45

1. Bawa deptt store2. Bhatia conff3. Sai conff4. Brother sweets5. Manaro sweets

Sector 46

1. Gobind sweets2. Mehta conf3. Verma conff

In sector 49b

1. Jain deptt. Store.2. Singh quality foods.3. Food hut confectionaries.4. Sri thakur dairy.

These are the shops where placement was done once and the company should continually focus on them to put the stock at least in the outlets where retailers have a liitle demand of 200ml.

During the internship task of intalling visi-coolers at petrol pumps was given to which I got the SGA’s installed at the follwing pumps:

1. Indian oil sector 39.2. Indian oil sector 373. Bharat petoleum sector 414. Indian oil sector 43.5. Indian oil sector 30.6. Indian oil secrtor 22.7. Two CITCO’s petrol pumps- proposal letter submitted to the Dairy

department, informed the GM(tourism) Mr. Malothra and file is in process.8. Bharat petroleum sector 17, documents yet to be collected from Mr.Sandeep

the owner of the pump.

57

Next, asked to try and focus on installing visi-coolers at gyms, which was not a

great success because the target market of soft drinks was not suitable for this segment.

But, the documents and cheque has deposited in the office of gym “ CUTS AND CURVES sector 38” to install a visi-cooler at their gym.

The owner of oceanic gyms chain was ready to get the visi-coolers installed at the gym but sternly denied for giving a security cheque for the SGA’s.Thus, the offer was not converted.

Increased few retail outlets for coca cola

Tanu juice bar sector 41. Grocerry shop at sector 20. In sector 9 B.K.traders is ready for convert his monopoly counter of PEPSI to

COCA-COLA monopoly counter. Information was given to the company to send somebodt to the counter for futhur formalities.

Did MIT and EDSR and PRE SELL at various occasions.

FINDINGS

Brand pack shortage

Most of the time depot was short with major brands and packs. Brands like Thums-Up, MMPO, and NIMBU FRESH and packs like, Thums-up usually not available in 2L PET and 500 ml PET, Nimbu Fresh 1L packing is rarely available in the market,

which affect the overall sales.

Scheme Communication.

There is no set up of formal methodology to communicate scheme to the

retailers/traders. This results in less sales and bad trade relations.

58

Bill cuts

Proper bills were not being provided and given to retailers. It has been learnt that

Market Share is calculated from bills present at the outlet.

Leakage and Breakage

No clear policy present for the leakage and breakage from market as a result

competitor was taking the advantage of that. PEPSI policy of picking up leakages

and breakage is highly appreciated by the retailers. The retailers have still stored the

breakage and leaked bottles with them which are now mostly of expiry date due to

no heed is paid to their timely requests of changing the problematic stock.

Customer Relationship

Another important fact drawn here is that retailers feel that company is not customer

friendly hardly anybody comes to interact with them, listen to their problems and if

they tell it to the salesmen there is no solution to it. As compared to PEPSI retailer

feel that their management is very systematic, the order boys of PEPSI keeps on

interacting with retailers building a relation and taking their problems to the levels of

hierarchy. Order boys of PEPSI are much educated hence that help in building

customer relationship.

SGA Problems:

Another important fact drawn by the retailers is that if any problem arises in the visi-coolers, even after registering their complaints their problems are not solved immediately. It was found that first visit after complain is done in the stipulated time but the visi-coolers are not repaired on time.

RECOMMENDATIONS

Brand pack availability:

First and foremost thing is that all the bran pack should be available at depot.

Minimum 5 or 6 days stock of each brand and brand pack should be available. For

this STOCK replenishment should be done by the concerned authorities. Then the

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second step is to provide all the brand packs in route trucks. Route trucks should be

monitor on daily bases.

Review of sales team:

There should be timely review of sales team. Timely training should be given to

them as competition is increasing day by day. DGM and ASM should timely motivate

them and teach them how to get extra sales.

Incentives:

According to management Incentive is the best tool to motivate the employees. Here incentive is related to sales. If sales increase companies profit will also be increased. To enjoy the more profits, Company should plan some handsome incentive for sales man and supervisors. We are talking about sales men and supervisor only because they are the only person who knows the shop keepers, their weakness and strength. If Company plan handsome incentive for them they are motivated to perform better as in return they will be rewarded for their superior performance

Bills cuts:

Markets Share is calculated from a sample set of outlets which are identifies by AC NIELSEN Research Company. These sample outlets represent the whole market. These sample outlets are chosen randomly and they keep on changing after 3 months. AC NIELSEN Company calculate market share from the bills. Company should take some serious steps for bill cuttings. Bills should be properly filled. Respective quantity should be mention in respective brand.

Leakage and breakage:

Leakage and breakage should be picked from the retailers at a fixed time may be at

the month end so as to maintain a high prestige and good relations with our

customers.

Promises should be kept:

It was found that the company offers display schemes for cash or in kind but the

benefits to the retailers are not received to which the retailer turns cold for the

company and starts keeping a impure visi-cooler and purchases less stock of coca-

cola. At the time of sampling of RGB in the recent past certain retailers were

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promised that they would get gifts or benefits in kind to allow them to do sampling at

their outlet and those in kind benefits not yet received. This kind of behaviour is

dangerous for the company image and future prospects.

RECOMMENDATIONS FOR 200ML SKU.

Need of the hour is to promote this SKU as much as possible to create the

demand of this variant among the people of Chandigarh.

Some of the measures have already been indicated above i.e. to increase the

advertisement through newspapers or by putting up hoardings in different areas

to catch more eye-balls.

The availability is the biggest issue seen causing low demand of this variant.

The availability of this variant can be increased through a scheme suggested

below:

A contest should be run for the local retailers of different sectors for

a week say for eg. Sector 23 All the retailer will have to keep stock

of 200ml minimum 8 bottles for chilled availability and 8 for the shelf

display for a week. A continuous evaluation will be done through

RED scores and the outlet that scores the most and whose sale for

200ml is most as compared to other retailers in sector 23 will get a

case of the brand pack for free that sells most at his outlet.

Combo schemes can introduced at local sweets shop. Schemes

can be of the following types

2samosas and a 200ml coke for Rs. 15, a burger and a coke Rs 20.

Etc. the prices of these combos can vary to different counters

subject to the cost of their eatables.

Introduce scheme of 3 bottles of 200ml with a crate of 300ml. This will force the

retailers to keep the stock of 200ml at their outlet resulting to increase in

availability of 200ml variant.

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Putting some stickers, flanges, or 200ml display flex will help to enhance the

awareness among the masses.

Under the cap schemes can be introduced which are only available in 200ml

variant, but this step may somehow will decrease the sale of 300ml.

LIMITATIONS

Although all efforts have been taken to make the results of survey as accurate as

possible but the survey suffers from the following limitations:

1) The psychological condition varies from place to place because in many

places outlet owner was not supportive.

2) The training was carried on in the peak season so Sales team was not so

supportive.

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QUESTIONNAIRE FOR THE RETAILERS:

Name ____________________________

Shop name ________________________

Sector ____________________________

Type of shop

(A) Grocery (C) E&D 1(B) Convenience (D) E&D 2

1. Which brand package sells more at your counter?A) 300mlB) 200mlC) 500mlD) 1.25ltsE) 2lts

2. Which is the average age group that buys majority of the soft drinks from your counter?

(A) 10-15 years(B) 16-25 years(C) 25- 40 years(D) 40 years and above.

3. Do you keep 200 ml Coke stocks with you? If yes, a) The sale of the counter ______________

If No, please cite the reason (s) a) Less demand of the product at your counter.b) The storage capacity provided by the company is not enough to accommodate

the SKU.c) The company salesman doesn’t inform you about the availability of 200ml stock.

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d) The supply of 200ml variant is not efficient and regular

4. The contribution that soft drinks make in the total sales at your counter is__________

__< 10%

__10%-20%

__20%-30

__30%-and above

5. Do you think customer is unaware of the availability of Chhota Coke?a) YES b) NO

6. What according to you is/ are the major reason(s) behind this unawareness?a) Very less advertisement of this variantb) Less price difference with 300ml variantc) Customer highly satisfied with 300ml quantityd) No special incentives to retailers for this variant e) Any

other________________________________________________________

7. Do you think the following factors will affect the sale of 200ml variant?

A) Increasing availability in the marketsB) Increasing Display of this variant at shopsC) More advertisement through TV, newspapers, hoardings etcD) Reducing its MRP

8. If extra scheming is introduced with this SKU, will that attract you to keep the stock of 200ml?(A) YES(B) NO

Thank you and have a nice day…..

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BIBLOGRAPHY :- www.bizcovering.com , www.dailyfianance.com, www.brandstratergyinsder.com, www.flliby.com, www.thecoca-colacompany.com, www.economictimes.indiatimes.com.

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