CONTENTS

CHAPTER-1
INTRODUCTION OBJECTIVES OF THE STUDY NEED OF THE STUDY LIMITATIONS OF THE STUDY

CHAPTER-2

PROFILE OF THE ORGANIZATION

- COMPANY PROFILE - INDUSTRY PROFILE COMPANY VISION, MISSION

CHAPTER-3 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

FINDINGS

- SUGGESTIONS - CONCLUSION

BIBLIOGRAPHY

INTRODUCTION
Producing and offering a good product or service to customers at a reasonable price is not the whole story. The third p of traditional marketing mix represents place. Place decisions concern marketing channel or distribution channel arrangements. It is crucial to ensure availability of goods and services to customers when they want, at places they want, and in the right quantities. This is an integral part of satisfaction delivery to customers and marketing channel arrangements can have dramatic implications for competition in a product market. Most marketing channels are composed of intermediaries who perform a number of very useful functions. These intermediaries or channel members include firms and individuals, such as wholesalers, retailers etc. that facilitate the distribution of goods or services to ultimate customer. Wholesalers buy larger quantities of products and resell to consumers for personal or home use. Each channel member performs a set of different functions within the overall channel structure. Channel members cooperate with each other and earn profits and success. According to Philip kotler A marketing channel is a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. According to Bower sox and cooper A marketing channel is a system of relationships existing among business that participate in the process of buying and selling products and services. Marketing channel decisions are critical and influence all other marketing mix decisions, these decisions are usually long-term and determine products market presence and ensure customers accessibility to the product. The same product may require different approaches to set up channel arrangements if different customer segments view it differently. For example, a computer is a consumer product as well as an organizational product and may

require separate approaches to change then price, promotion, and product decisions. Legal contracts may limit changers and developing effective relationships with channel members, often takes longer and costs more. It may also be hard to move retail outlets and wholesale facilities once they are set up. E. Raymond Corey writes in his book: Normally it takes years to build (distribution channel), and it is not easily changed It represents a significant corporate commitment to large numbers of independent companies whose business is distribution and to the particular markets they serve.

CHANNEL FUNCTIONS:-

Most manufacturers do not sell their products directly to end-users. Between the end-user and the producer, there are channel members performing a variety of functions. Some of these resellers such as wholesalers and retailers purchase from producers, take ownership title, and in turn resell the products to parties or consumers at the next level. They are called merchants. In contrast brokers, agents, and producers sales - persons search and negotiate with buyers on behalf of the producer and do not acquire ownership title to merchandise. Others channel members work as facilitators in the process of distribution and include transporters, privately owned warehouses, banks, and others who neither negotiate with buyers or sellers on behalf of producer nor take ownership tile of merchandise.

A single channel member may perform all these functions in certain situations. However, in most of the situations, channel members at different levels are involved in performing the following functions jointly:

 Channel Members Create Utility: Marketing channels create time, place, and possession utility. Time utility refers to making products available to customers when they want them. They create place utility by making products available in locations, where customers desire them to be available for buying. Possession utility means customers having access to obtain and have the right to use or store for future use. This may occur through ownership or some arrangements such as rental or lease agreements that entitle the customer the right to use the product. Channel Members Facilitate Exchange Efficiencies: Channel members offer exchange efficiencies and help reduce the exchange costs by providing certain functions or services. Let us assume that three customers seek to buy products from four producers. If there are no middlemen involved, the total transactions with three customers will be twelve. If these four producers sell to one reseller, the total transactions for producers will come down to four (one for each producer), and in turn the reseller will handle three transactions with customers. The costs of three transactions for each producer are likely to be more than just one transaction with reseller for each producer. In this situation just one reseller serves both producers and the customers. Cost is a major factor coupled with better service to customer needs for using channel intermediaries. Channel Members May Reduce Discrepancies and Separations: For most customers, producers are located far from them and customers may want different product assortment & quantity of the manufacturers produce. Customers too may not be very clear about their product choices and channel members help adjust these discrepancies. Assortment discrepancy refers to the difference between the product lines a company produces and the assortment customers want.

A company may be specialist in producing cricket balls only, but a typical cricket enthusiast would also be interested in cricket bat or gloves, and other complimentary products not prefer to shop for these items elsewhere. The resellers adjust these discrepancies. Quantity discrepancy means the difference between what quantity is economical for the company to produces, which in most cases is quite large. The cricket ball manufacturers might be producing 10 or 15 thousand balls in a given period. The average buyer would buy far less number of balls at a time. Channel members may also help in handling this discrepancy. Middlemen collect and accumulate products from various producers. Wholesalers buy in bulk, break it into different grades or qualities desired by different customer groups, and sell smaller quantities to retailers, who sell to the customer one or few units at a time . Other Function: Distribution channels share financial risk by financing the goods moving through pipeline and also sometimes extend the credit facility to next level operators and consumers as well as handle personal selling by informing and recommending the product to consumers, and partly look after physical distribution such as warehousing and transportation, provide merchandising support, and furnish market intelligence. The main criticism about using intermediaries is that this increases prices. Customers prefer lower prices and would like the channels as short as possible. The assumption is that lower the number of intermediaries, the lower the prices. This thinking ignores the fact that channel members perform certain functions and producers cannot escape these functions by not involving intermediaries. The functions and associated costs are simply transferred to producer.

CHANNEL LEVELS Many different distribution path alternatives have been developed because a certain channel type may be appropriate for one product but may not be suitable for others. Various channel types may be classified generally as channels used for consumer product or industrial products.

Consumer product channels:Companies producing consumer products may use several different types of channels. Producers can choose zero-level channel (also called directmarketing channel). This approach involves moving product direct from producer to customer. Zero-channel system does not involve resellers. Examples include company owned stores, telemarketing, mail order, and door-to-door selling etc. Sara lee, Amway, Avon cosmetics, Eureka Forbes, Amazon and others use zero-channel. This is a quite simple arrangement but may not be the most efficient or economical means of distributing products to consumers (Figure 18.1, A). Sumit k. Majumdar and VenkatramRamaswamy suggest that faced with making strategic choice of going direct to the consumer or using channel partners, a company must weigh the benefits to consumers against the transaction costs involved in consumers. One-level channel (B) moves products from the manufacturer to retailer. Retailer makes these products available to consumers. Large retailers such as supermarkets and chain stores prefer to buy large quantities of goods from manufacturers. using intermediaries before going direct to

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Agents

Wholesalers

Wholesalers

Retailers

Retailers

Retailers

Consumers A

Consumers B

Consumers C

Consumers D

FIGURE 1: MARKETING CHANNELS FOR CONSUMER PRODUCTS

Two-level channel (c) has been quite popular among consumer product companies since long. Between a manufacturer and consumers there are two types of channel intermediaries wholesalers and retailers.

The goods pass from producer to wholesalers, then to retailers, and finally to consumers. This channel arrangement is a practical option to producers who sell to millions of consumers in several geographic areas through few thousand to lakhs of retail shops including the locality kirana stores. In India, there are an estimated 12 million grocery outlets. Wholesalers of all shapes and sizes cater to large number of retail stores, including rural markets. Tobacco products, tea, and laundry products etc. are typical examples where wholesalers and retailers operate between manufacturers and consumers.

Three-level channel arrangement involves intermediaries at three levels. The manufacturer does not handle any distribution functions and appoints sole agents with substantial resources or C&F agents. They have their own network of wholesalers, and retailers all over the country. This kind of arrangement may also be on territorial basis. C&F agents handle only distribution functions. Sole selling agents any also handle personal selling on behalf of producer besides taking care of distribution. This is a fairly common practice in India among pharmaceutical manufacturers lacking resources to handle personal selling and distribution functions.

Another channel option is strategic channel alliance. This refers to an arrangement when another company through its own marketing channels sells the products of one producer. For example, a soft drink company may distribute the bottled water of another manufacturer, or a domestic company might distribute the products of a foreign company.

Traditional channels discussed above refer to forward movement of products from producer to consumer. Some producers must also plan for channel intermediaries performing the role of reverse-flow channels to retrieve products that customers no longer want. For example auto firms, drug companies, toy manufacturers, and others sometimes have to recall products due to defects, breakage, safety reasons, and repairs during warranty period. They, including producers, help in reversing the flow of certain types of containers for reuse, computer circuit boards for refurbishing and resale, paper, cardboards, and metals etc. for recycling.

Industrial Product Channels:-

Sometimes manufacturers of industrial products work with more than one level of level of wholesalers. Four of the most common channels for industrial products are shown in Figure 13.2.
Manufacturer

Manufacturer

Manufacturer

Manufacturer

Agent

Agent

Industrial Distributors

Industrial Distributors

Industrial Buyers P

Industrial Buyers Q

Industrial Buyers R

Industrial Buyers S

A large number of industrial products, particularly producers of expensive and technically complex equipment sell directly to industrial buyers (Figure 18.2, P). IBM sells its mainframe computers direct to business buyers. Companies producing standard industrial items, such as hand tools, and small operating equipment usually operate through industrial distributors (Q). Industrial distributors may carry a wide variety of product lines and items from different manufacturers, or some may specialize and carry only limited number of lines. James D.Hlaveccek and Tommy J. McCuistion reported that this distribution channel suits producers making products with broad market appeal, easily stocked, sold in small quantities, and needed on demand to avoid high losses.

The advantages industrial distributors offer include selling services at low cost, extend credit to customers and develop close relationship, and provide market intelligence to manufacturers. They also minimize financial burden of manufacturer by holding adequate inventories in the market. The disadvantages include lack of control because industrial distributors are independent firms, they also carry competing brands and manufacturer cannot depend on them to push a specific brand. They generally avoid stocking expensive and slow moving items and may seek special incentives. In case of industrial channel three (R), an independent firm works as producers representative or agent on a commission, usually sells complimentary products of several companies in specific territories. The agent does not acquire ownership title to the products.

Agents offer the advantage of their considerable technical and market information and have an established number of customers. They can be very useful for seasonal industrial products, more so because agents are paid only commission on sales. When the company cannot afford a full-time sales team, agent can be an asset. The problems include little control on agents, because of commission system they often focus on large buyers, and may not adequately follow up customers when it reduces productive selling time.

CHANNEL FLOWS

The channel members augment the distribution function in indirect marketing. They are involved in various kinds of flows. Some of these flows are forward flows (from producer to consumer) whereas some flows are backward (from consumer to producer) flows, facilitating the smoother distribution of products and services. These flows are based on various

functions undertaken by distribution channel members. There are few -`flows, which are two-way in nature. The physical flow is a forward flow in which the goods physically flow from the producer to consumer. Similarly, there is a title flow in which the ownership of the product moves from producer to consumers. The payment flow is a backward flow in which the cash novels from consumer to producer. Product promotion flow is a forward flow whereas information flow is two-way in nature as it flows from and to producers and consumers as illustrated in the following diagram.

So flows like physical, title and promotion are forward flows; flows like ordering and payment are backward flows and flows like information, negotiation, finance and taking occur in both directions. A manufacturer needs three kinds of channel, namely sales channel thorough which a sale is closed; a delivery channel through which the product is delivered and a service channel through which the product at customer point is serviced. Channel management is a complex process as it not only needs integration of all the three channels but also there is a high level of interdependence among the channels. A failure or poor performance in one channel may affect the other channels and also the overall channel effectiveness.

CHANNEL MANAGEMENT DECISION

After designing a channel of networks, it must be managed be managed efficiently for desired results. The ultimate objective in channel management should be a win-win for everybody including customers. Profit=making alone should not be the motive of the producer and his channel members, satisfying the target customers, needs should take precedence.

Therefore, for efficient management of distribution channels, the following steps can be considered:

Setting channel objectives Training and motivation of channel members Compensating channel members Evaluating and replacing channel members

Setting Channel Objectives:-

In managing the channel network, a marketer must set objectives in clear terms. It is obvious that all channel members work for a profit. The marketer should strike a balance between his own interest, channel members and the interest of the customers by setting workable and realistic objectives, For example, a marketer can state its channel objective as minimizing total costs by five per cent and he can instruct all channel members to work towards achieving cost minimization in the interest of customers. This may require channel members to arrange their functional tasks in such a way that distribution costs are reduced. Cost minimization objective will vary with the nature of the product and its characteristics. For example, products which are perishable must be disposed off as early as possible as possible. So, cost minimization objective may not be appropriate in the case of such products.

Training and Motivation of Channels Members:-

Training is a necessary input for effective performance, Depending on the nature and characteristics of the product, training of middlemen may be required for selling and servicing. When the product is technically complex, it may be desirable for middlemen personnel to be trained is technically

complex, it may be desirable for middlemen personnel to be trained both in selling and servicing. The training inputs may include a manual for middlemen salespersons and special classroom training courses. Moreover, appropriate motivational on displaying and advertising can stimulate the interest of the channel members and help grain their cooperation for efficient working. Motivational techniques Meetings with distributors and jointly planning the sales and distribution objectives, inventory management, advertising programmers and middlemen training needs will result in smooth relations, and cooperation.

Compensating Channel Members:-

Apart from motivational incentives, compensation for the channel members comes from the discounts and allowances allowed on the producers that buy from the producers. The discounts commonly used by the producers include trade discounts, promotional allowances for cooperative advertising, installing retail displays and other promotional efforts. Discounts can also be allowed for maintaining a specified level of inventory, for meeting sales targets and for effective servicing of customers.

Evaluating and Replacing of Middlemen:-

A producer must evaluate the performance of each middlemen to determine whether he deserves to continue in the channel network. The criteria for evaluation may include the following Achieving the sales quotas within the stipulated period Inventory maintenance (stock) Customer delivery (on time) Customer Service (on time)

 Training cooperation Promotional efforts and using of promotional allowances Cooperation for research Relations with companys sales force.

When a distributor fails to meet the expected performance, a decision can be made to drop and replace him.

INDUSTRY PROFILE

Soft drinks are one of the common drinks which are basically used for thirst quenching purpose. It was introduced in the 17 th century. Due to the changing life scenario it is now positioned as a fun drink and virtually luxury. Soft drink is consumed by almost every section of the society for its cool and tasty attributes.

HISTORY:The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the campaign de Limonadiers of Paris were granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians. Joseph Priestley In 1776, Englishmen created the first drinkable man-made glass of carbonated water three years later, Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulphuric acid. Bergmans apparatus allowed imitation mineral water to be produced in large amounts.

John Mathews In 1810, the first united states patent was issued for the ;means of mass manufacturer of imitation mineral waters to Simons and rundell of Charleston south Carolina however, carbonated beverages did not adhesive great popularity in America until l1832, when john Mathew invented his apparatus for the making carbonated water. John Mathews then mass manufactured his apparatus for a sale to soda fountain owners.

THE SOFT DRINK BOTTLING INDUSTRY:Over 1,500 U.S. patents were filed for a cork, cap or lid for the carbonated drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are under a lot of pressure form the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles form escaping. In 1892, William painter a Baltimore machine shop operator patented the crown cork bottle seal. It was the first very successful method of keeping the bubbles in the bottle. Automatic Production of Glass Bottles: In 1899, the first patent was issued for a glass bowling machine for the automatic production of glass bottles. Earlier glass bottles had all been hand blown. Four years later the new bottle bowing machine was in operation. The inventor Michael Owens, an employee of Libby Glass Company first operated it within a few years glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.

Horn Paks and Vending Machines During the 1920s the firstHorn-Paks were invented hornpaks are the familiar pack beverage carrying cartons made from cardboard. Automatic vending machines also began to appear in the 1920 the soft drink had become an American mainstay.

SOFT DRINK MARKET IN INDIA:-

The history of the soft drink market in India started by back in early 1940s by Glucose Company and next by Parle group in 1949 followed by another manufacturers of soft drinks like pure drinks. M.C. Dowell, dukes etc. after the exit of the Coca-Cola in 1977 Parle became the undisputed market leader till recent past. Since the introduction these soft drinks were served in 2oo ml packs that too in bottles only. In September October 1998 Parle had decided to go for 250 ml bottles and introduced thumps up in Delhi. The main factor that influenced them in going to 250ml instead of 200ml was to counter attack the entry of Pepsi.

PRESENT SCENARIO Latter on when globalizing our economy opening it up for MNCs like Pepsi, Coca-Cola, and Cadbury etc. to enter the real cola war had begun. Although the import and manufacture of international brands like coke and Pepsi is enhanced in India, the local brands are being stabilized by advertisement good quality and low cost. Ever since the entry of Pepsi, the competition between Pepsi and Parle was a battle of small arms, as the alliance of Parle with coke and constant reveal of sophisticated management techniques by Coke and full fledge highly innovative promotional activates by Pepsi has really made the industry as a battle field of cannons. One can make above statement by seeing advertisement expenditure and investment of Coke and Pepsi. Coke is expected to pump 2400 crores and Pepsi 300 crores into the Indian markets apart their initial investment of 250 crores and 500 crores respectively.

MARKET SHARE

Cola products account for nearly 61-62% of the total soft drink market. The brands that fall in this category are Pepsi, Thumps Up, Diet Coke, Diet Pepsi etc. Non-Cola segments which constitute 36% can be divided into four categories based on the types of flavors available namely orange, cloudy Lime, Clear Lime and mango. Coca Cola, king of soft drinks industry boasts a global market share of around 50% followed by Pepsi Company at about 21% and Cadbury Schweppes at 7%.

FACTORS INFLUENCING THE SOFT DRINK INDUSTRY

A soft drink is a mixture of concentrate sugar syrup and treated water .The factor that affect the soft drink market and the soft drink industry has resulted in the great competition are:

Impulse: Soft drink business not governed by brand loyalty. So that emphasis is not only on creating the market but also on retaining it. Availability Factor: The availability of right brand in the right place, at the right time is main aim for winning consumers in soft drink business. Seasonal Business: The main consumption of soft drink is in summers and hence most of the profits are to be made in this season itself.

COMPANY PROFILE

INTRODUCTON TO COCA-COLA:-

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 worlds leading manufacturer, marketer and distributor of non -alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Its the FMCG industry in India .The Companys beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-readyto-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 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: Provide a moment of refreshment for a small amount of money- a billion times a day.

THE COCA-COLA COMPANY HISTORY:-

Coca-Cola was first introduced by John Smyth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramelcolored syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-Cola is enjoyed.

Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark CocaCola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year.

In 1895, three years after The Coca-Cola Companys incorporation, Mr. Candler announced in his annual report to share owners that Coca -Cola is now drunk in every state and territory in the United States.

As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

MANIFESTO FOR GROWTH VALUES:The values that the employees in the Company are expected to keep up to and work by regularly are as follows: LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy and zeal, to deliver outstanding results. INNOVATION: To continuously strive for progress and reach the next level of excellence in everything we do. PASSION: To be deeply committed and display drive and energy in the quest to deliver outstanding performance. TEAMWORK: To unite for greater strength and work collectively as a group towards the achievement of common goals. OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the lowest appropriate level. ACCOUNTABILITY: To be individually and transparently accountable to our colleagues for delivering agreed targets and goals.

MISSION:-

To create consumer products, services and communications, customer service and bottling system strategies, processes and tools in order to create competitive advantage and deliver superior value to; To Refresh the World... In body, mind, and spirit To Inspire Moments of Optimism... Through our brands and our actions To Create Value and Make a Difference... Everywhere we engage. Consumers as a superior beverage experience Consumers as an opportunity to grow profits through the use of finished drinks Bottlers as an opportunity to grow profits in volumes Bottlers as a trademark enhancement and positive economic value added Suppliers as an opportunity to make reasonable profits when creating real value added in an environment of system-wide team work, flexible business system and continuous improvement Indian society in the form of a contribution to economic and social development.

VISION FOR SUSTAINABLE GROWTH:-

To provide exceptional strategic leadership in the Coca-Cola India System-resulting in consumer and customer preference and loyalty, through Coca-Colas commitment to them, and in a highly profitable Coca-Cola Corporate branded beverages system.

 PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities. PEOPLE: Being a great place to work where people are inspired to be the best they can be. PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples Desires and needs. PARTNERS: Nurturing a winning network of partners and building mutual loyalty. PLANET: Being a responsible global citizen that makes a difference.

VISION FOR SUSTAINABLE GROWTH

QUALITY POLICY:To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processesEvery time.

HINDUSTAN COCA-COLA BEVERAGESPRIVATE LIMITED (HCCBPL) ABOUT THE PLANT:Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveals its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parles plants and a well set bottling network, an excellent base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Gold spot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002. Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of

700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and ThandaMatlab Coca Cola for Rural India. This resulted in a 37% growth rate in rural India visa vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide.

Coca-Cola Timeline 1886 Coca-Cola invented 1923 Woodruffs initiatives of Personal Training, Better Service and Quality Products introduced 1929 Foreign Sales Group formed for global expansion 1945 Coca-Cola established as a global brand 1952 Coca-Cola was introduced in India 1960 Fanta and Sprite introduced 1970 Focus on marketing 1980 The Coca-Cola system stabilized 1993 Coca-Cola re-enters India 2004 E. Neville Is dell rolls out MFG(Manifesto For Growth

LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

BUSINESS:-

Coca-Cola enterprises are in the business of Marketing, Producing and Distributing liquid non-alcoholic refreshments to customers in their franchise tern tones. In 1994 they distributed approximately 1.7 billion equivalent cases of the product throughout their territories, which comprise of 38 states and the District of Columbia in the United States. Their territory also extended too many foreign countries. The Coca-Cola Enterprise and the Coca-Cola Company are in business partnership. The Coca-Cola Company develops the product; while as a bottler the Coca-Cola Enterprise combines the product concentrates with other ingredients and packages the beverages in bottles, cans and fountain containers.

MANAGEMENT PHILOSOPHY:-

CORPORATE AREA:-

The major concept of management philosophy is to remain in the beverage industry and not diversify into other areas. The management believes in investing in non-capital-intensive areas. In fact, the beverage industry requires little capital, and produces maximum returns. The returns from the foreign markets are tapped to the most.

FINANCIAL AREA:The corporate objectives are to increase the shareowners value. The management believes that in increasing the shareholders value it requires consistent growth in financial results complemented by effective use of the cash flow.

MARKETING AREA:Here the management is committed to superior market place execution. This is achieved by decentralized operating structure that places the responsibilities, authority and the accountability as close to the customer and consumer as possible.

THE BRAND:Coca-Cola consistently ranks in the worlds most valuable brands. The brand value is about $39billion.This is the greatest heritage of the company. As far as the branch management concerned, we find that Coca-Cola ranks itself as the third only after Microsoft and Louis Vinton.

COCA-COLA INDIA:-

Coca-Cola returned to India after 16 years, in 1993.The brand promotion was in between 1994-96.The bottling acquisition occurred in between 1997-99.Its quest for profitability started from 2000 onwards. In India Coke have its concentrate plants at pune producing 10 brands. Its company-owned bottling operations are at six operating regions, 29 operating areas with 26 plants, 10 green fields, and 3000 associates. It enjoys a business of over Rs.3000 crores in India.

ANDHRA PRADESH REGION:-

AP has emerged as the single biggest state in terms of overall CSD sales volume as well as in terms of manufacturing facilities. Up to 18-20 percent of the companys sales volumes are from AP.

Coca-Cola now in total consists of five operating locations for CSD brands and KINLEY packed water at Moula-Ali, Vijayawada, Srikalahasti and Vishakhapatnam having a turnover of over 750 crores with 3 plants, 2 Green fields and 1500 associates. The company also has two contract packers for its water business.

Thumps-Up now has a leading position in CSD market in AP, with a market share of nearly 50percent.All Coca-Cola`s CSD brands put together now accounted for 75 percent of the overall CSD market

ORGANIZATION STRUCTURE OF COCA-COLA

Chairman Chairman and and CEO CEO

E. E. Neville Neville Isdell Isdell

President President CCNA CCNA

EVP EVP & & President, President, Coca-Cola Coca-Cola International International

EVP EVP & & President, President, Marketing, Marketing, Strategy Strategy & & Innovation Innovation

President, President, Bottling Bottling Investments Investments & & Supply Supply Chain Chain Irial Irial Finan Finan

CFO CFO

CFO

Director Director ,, HR HR

Region Region Director Director Steve Steve Buffington Buffington

Region Region Director Director

Singapore Singapore CBO CBO

Brazil Brazil CBO CBO India India CBO CBO (HCCBPL) (HCCBPL)

China China CBO CBO

FIGURE 3: ORGANIZATION STRUCTURE IN COCA-COLA

CEO CEO John John Ustas Ustas

VP VP Sales Sales

VP VP Supply Supply Chain Chain

CFO CFO

Director Director HR HR

VP VP BSG BSG

Region Region VP VP (North) (North) Region Region VP VP (Central) (Central) Region Region VP VP (South) (South)

FIGURE 4: ORGANIZATION STRUCTURE IN COCA-COLA, India

AGM AGM // AOD AOD

Plant Plant Manager Manager

Route Route to to Market Market

HR HR Manager Manager

Finance Finance Manager Manager

Sales Sales Manager Manager // GSM GSM

ASMs ASMs

Channel Channel Manager Manager

Area Area Capability Capability Dev Dev Manager Manager Sales Sales Trainers Trainers

Sales Sales Executives Executives

Market Market Developers Developers

Distributors/ Distributors/ Salesmen Salesmen

Marketing Marketing

Key Key Accounts Accounts

FIGURE 5: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

COMPETITORS TO HCCBPL

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

The key competitors in the industry are as follows:

: PepsiCo: The PepsiCo challenge, to keep up with archrival, the CocaCola Company never ends for the World's # 2, carbonated soft-drink 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 Aquafina water.

PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to Pepsi.

 Nestl: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people.

Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever since times and people have laid all their trust in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange.

THE MAJOR PRODUCTS IN THE COCA COLA COMPANY:CAFFEINE FREE COCA-COLA CLASSIC:-

Were launched 1983 which aim at customers who want to limiting their consumption of caffeine while still drinking coco cola and enjoying its taste.

CHERRY COKE:The first cherry flavored cola were launched in 1985.The Coca-Cola company offers several other carbonated drinks to target different consumers. Sprite is the number 7 in the US soft drink market launched in 1961. Fanta is the world third bestselling soda and the worlds bestselling orange drink with a31% market share of the category. CLASSIC:The Coca-Cola classic is the flagship of the companys carbonated drinks. The product was made public on May 8th 1886.

INDIAN BRANDS:-

COCA- COLA:

The world's favorite drink. The world's most valuable brand. The most recognizable word across the world after OK.Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments.

DIET COKE (Looking good and tasting great!):

Diet Coke was born in 1982 and quickly became the No. 1 sugar-free drink in diet-conscious America. Known as Diet Coke in the U.S., Canada, Australia and Great Britain, and as Coca-Cola light in other countries, it's now the No. 3 soft drink in the world.

THUMS UP:

Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by The CocaCola Company in 1993. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.

LIMCA:

Limen' lemony Limca, the drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavors soft drink in the country. Fanta:

Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993.

SPRITE:

Worldwide Sprite is ranked as the No. 4 soft drink &is sold in more than 190 countries. In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood for a straight forward and honest attitude. Its clear crisp refers hing taste encourages the today's youth to trust their instincts, influence them to be true to who they are and to obey their thirst. MAAZA:

Maazawas launched in 1976. Here was a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the fruit drink category. MINUTE MAID PULPY ORANGE

Orange juice with real orange pulp with this slogan, Coca cola launched its minute maid brand of orange juices for the first time in the country at Hyderabad. Though Coca cola India had in its portfolio the highly successful Maaza brand in the juices segment, this is the first time the company is introducing some of the products from its own Minute maid portfolio.

GEORGIA:

In the company's journey towards the vision 'leading the beverage revolution in India', now even Garammatlab Coca-Cola. A hot new launch from Coca-Cola India. Georgia, quality tea and coffee served from state of the art vending machines is positioned to tap into the nations biggest beverage category. Georgia, which promises a great tasting, consistent, hygienic and affordable cuppa is available in a range of 7 sizzling flavors, adrak, elaichi, masala and plain tea cappuccino, mochaccino and regular coffee.

Georgia is currently in the roll out stage after a successful launch in Delhi & Kolkata. Georgia aims to become the consumers preferred choice of hot beverage when he is on the go, the brand is well on course to achieving its vision. While Georgia is a mass market offering, Georgia Gold is the premium brand which caters to the connoisseur. Made from freshly roasted and ground coffee beans, Georgia Gold is delicious tasting aroma with the tantalizing aroma of fresh coffee. Currently available exclusively at McDonalds outlets across the country Georgia Gold has driven coffee sales through the roof. The success of hot beverages from Georgia Gold has resulted in extension into the cold category, with the introduction of Ice Tea and Cold Coffee.

KINLEY:

Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with the assurance of safety from the Coca-Cola Company. That is why we introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our product. That's why we go through rigorous testing procedures at each and every location where Kinley is produced.

MANUFACTURING PROCESS AT HCCBPL The manufacturing of the products of Coca-Cola involves the following steps: Water is received from the River Cauvery and it passes through the water treatment plant, further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water. In the syrup room, the concentrate 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 depalletised, inspected and washed for the purpose of filling in the final product in it. The product is finally filled in the bottles, crowned (in case of RGB), labeled and cased in order to be sent into the warehouse for distribution.

OPERATIONS IN THE PLANT

INGREDIENT DELIVERY

SWEETENER:Team of professionals, work on selecting, auditing, sampling, testing, approving and then authorizing the sugar suppliers and the list of such authorized suppliers with approved sugar lots and along with the certificate of analysis are sent across to all the bottling unit for procurement. SECRET FORMULA Created in special concentrate plants, its delivered held and used under strict controls to maintain its integrity and security. Each unit of concentrate is especially identifiable to allow the History of each component to be researched at any stage of production, storage or use.CO2 FORMULA When delivered to the plant, co2 comes in cylinders for easy delivery and storage. In essence, co2 a colorless and odorless gas that provides the Fizz for our beverages. WATER Since water is a key component to all our beverages, its quality is critical. And since public water quality varies around the world, each plant further treats the water it uses. This means that before water is added to any of the beverages, its rigorously filtered and cleansed. MATERIALS Ingredients are not the only things delivered to the plant, other materials such as bottles, cans, labels and packaging are also delivered. Coca cola plants in Khurda uses refillable glass bottles (RGB) in the production process. When bottles are delivered to the plant, they are carefully inspected to ensure that they meet the exacting standards. Once these have passed initial inspection, they move on to be washed and rinsed.

WASHING AND RINSING To ensure quality, each bottle is washed, sanitized and rinsed before being filled. While this sounds simple, the actual steps can differ by bottling plant. In khurda, Coca cola plants use refillable glass bottles. To ensure they meet the cleanliness standard of the company, bottles are first hit with prerinse jets which remove a dirt or debris. They are then soaked in a high temperature deep cleaning solution that removes any remaining dirt and sanitizes them. The bottles then move to the Hydro wash where they are washed again with a deep cleaning pressure spray.

MIXING AND BLENDING

H2O AND SUGAR Mixing and blending begins with the steps of mixing pure water with refined sugar, which creates simple syrup. The syrup is then measured for the correct amount of sugar.

H2O AND SYRUP With the syrup nearing its final state, it is mixed with pure water, creating the finished carbonated beverage. However, the water and syrup must be mixed in right ratio. This is done by the beverage proportioning equipment. It accurately measures the correct ratio for each and sends this mixture to the carbonator.

CO2 ADDING Adding CO2 or carbon dioxide gas, it is the final touch that carbonates the beverages, CO2 not only give our beverages their effervescent zest but it also adds to the distinctive and familiar taste everyone has come to expect from our beverages.

FILLING Once all the ingredients have been mixed and blended and the bottles have been cleaned and sanitized the plant is ready to start filling. This is a surprisingly complex process requiring precision at each step. To begin with bottles must be carefully timed as they move to the filler. Before the bottles can be filled, the inside of the bottles must be pressurized. This allows for the force of gravity itself to draw the beverage into the bottle a process that ensure the smooth flow of liquid with little to no foaming. CAPPING Once filled, bottles are then capped. Company uses different bottles, glass bottles are usually topped with a metal. Each cap type then moves through different parts of the machine which ensures each cap stays scratch free and is in the right position to be precisely placed on the bottle. The process actually stops if the detector doesnt find a closure. If the bottle cap isnt just right, the beverages can become flat or be affected in other ways. If this happens the bottle is discarded. CODING The bottle is now ready to be coded. Each one of the beverages is marked with a special code that identifies specific information about it. The codes simply identify the data the beverages was bottled. These codes identify the date, time, batch no. and the MRP. INSPECTION Company inspects bottles at many points during the process. With the refillable bottles, it happens when they are first brought into the plant. They are also inspected after they are washed and again after they are filled. Inspectors look for external bottle imperfections and make sure each bottle has the right amount of beverages. Even after filling, the plant samples bottles for analysis in its lab to ensure quality is up to standards.

PACKAGING Once the filled beverages have passed final inspection, they are ready to be packaged for delivery. WAREHOUSING AND DELIVERY In order to make sure the freshest beverages possible get to you, each warehouse must efficiently manage the thousands of beverages cases produce each day. From the warehouse, beverages are loaded onto the distinctive trucks. BUSINESS PLAN MODEL AT HCCBPL:

"An efficient distribution network in FMCG has a base of a well managed production capacity"

DISTRIBUTION NETWORK: HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them. A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse ---Retail Stock --- Retail Shelf --- Consume The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and well organized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm. Distribution Chain at HCCBPL:

Company appoints Pre-Seller

Distributor gives same to the Salesman

Salesman delivers to Retailers

Distributor Stocks the Goods

Pre-seller submits Order to Distributor

Salesman receives Payment

Pre-seller Coordinates with Distributor

Pre-seller goes on next day Route and takes Order

Reporting to Distributer Distributor

Figure 6 : Distribution Chain

takes the Order

DISTRIBUTION ROUTES The various routes formulated by HCCBPL for distribution of products are as follows: Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc. Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product. Examples: Departmental stores, Super markets etc. Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc. General: Under this route, all the outlets that come in a particular area or an area along with its neighboring areas are catered to. The consumption period is not taken into consideration in this particular route.

DISTRIBUTION SYSTEM Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level. Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management) Merchandising: Merchandising means communication with the consumer at the people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products. DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS The Distribution process mainly consists of three departments: Distribution Department: It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their set-up. Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm, records collections from distributors, periodically reconciles outstanding balances from distributors, obtains balance confirmation from distributors and follows up outstanding balances.

Shipping or Warehousing Department: It dispatches goods as per approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner. SWOT ANALYSIS OF HCCBPL Strengths: The Coca Cola sells beverages in around 200 countries. Coca Cola have number of variants. It Have brand awareness in the world. Coca Cola Logo is very famous among the people Strong marketing and advertising Coca Cola was the first commercial sponsor of Olympic Games and it has been sponsoring the FIFA and cricket world cup events. Coca Cola has been featured in movies such as The Coca Cola Kid; God must be crazy and others. People like the taste and quality of Coca Cola around the world. Strong Financial reserves and returns Weaknesses:-

Customers are not being able to differentiate among few brands such as Coca Cola Zero and Diet. It high relies on Coca Cola drink only. Most of the beverages supply is restricted to few countries. Lack of innovation.

Opportunities:-

Innovation Overtake competitors Launch healthy drinks Increase mineral water sales Increase Awareness programs Launch other coca cola variants in the untapped countries.

Threats

Intense competition from Pepsi New entrants are gaining market share. Decrease in Coca Cola brand value in last few years. It has some negative health effect. Ongoing recession Economy instability in third world countries Political instability in few countries

OBJECTIVES OF THE PROJECT 1. To study the current distribution system of Coca-Cola company in tirupati town.

2. To analyze the comfort level 0f dealers with current distribution system in Coca-Cola company.

3. To suggest remedial measures

NEED FOR THE PROJECT

Current distribution followed by Coca-Cola is less effective.

Dissonance of the dealers is the main concern for the company.

There is a problem in between dealers and retailers.

LIMITATIONS OF THE STUDY The limited sample size and collecting random sampling. The company does not provide the classes. The dealers and retailers are not responds correctly, because very peak selling in tirupati town. The topic is very vast but available information time is short.

RESEARCH METHODOLOGY The term Research is composed of two words Re and Search. Re means again & again, Search means search about new facts. Thus the term Research can be defined as a careful investigation or enquiry specially to search new facts in any branch of knowledge. The term Research refers to the systematic method consisting of enunciating the problems, formulating the hypothesis, collecting the fact or data, analyzing the facts and reaching certain conclusion either in the form of solution toward the concerned problem or in certain generalization for some theoretical formulation. According to CLIFFORD WOODY, Research is a careful inquiry or examination in setting the facts or principle, a diligent investigation to ascertain something. METHODOLOGY Methodology is the systematic and objective identification, collection analysis, dissemination, and use of information for the purpose of improving decision making related to the identification and solution of problem. SOURCES OF DATA The source 0f data for the study is primary and secondary data. PRIMARY DATA Primary data is the first class information collected for the first time use. In the study, it is collected from dealers and retailers through personnel interview. SECONDARY DATA Secondary data is the data that is already used for some other purpose and is collected from the company office.

Population of the study and size:The total Distributers are 3and Retailers are 700in tirupathi town of population of my project.

Sample size: - Dealers (Distributers) 03

Retailers 150

Sampling procedure:As size of population is large, so I will collection the data to randomly. Research instrument:A structured interview schedule method is used to collect data from the respondents. Contact method: - personnel interview.

DATA ANALYSIS
EFFICIENCY OF THE DISTRIBUTOR WORK The following Table and Graph gives the information about the Efficiency of Distributor. Table No 3.1: Efficiency of Distributor
Survey Particulars 1. Very Good 2. Good 3. neutral 4. Bad 5. Very Bad Total GraphNo3.1: Efficiency of Distributor 6 64 26 16 38 150 Percentage (%) 4 42.7 17.4 10.6 25.3 100

Interpretation: 1. From the table, it is observed that 64(42.7%)respondents are satisfied by the distributor work 2. From the table, it is observed that 38(25.3%) respondents are completely dissatisfied by the distributer work. 3. From the table, it is observed that 26(17.4%) respondents are just satisfied by the distributer work.

FREQUENCY OF SERVICE PROVIDED BY THE DISTRIBUTOR The following Table and Graph gives the information about the frequency of service provided by the Distributor.

Table No3.2: [Frequency of Service provided by the Distributor] Particulars Daily More than 2times a week Weekly Infrequently Total 68 40 22 20 150 Service frequency Percentage (%) 45 26.8 14.8 13.4 100

Graph No3.2: [Frequency of Service provided by the Distributor]

Interpretation: 1. From the above table, it is observed that 68 (45%) respondents are said that the frequency of service is daily. 2. From the above table, it is observed 20(13.4%) respondents are said the frequency 0f service is infrequently.

RESPONDS OF DISTRIBUTOR The following Table and Graph gives the information about the responds of the Distributor. Table No: 3.3 [Responds of distributor] Particulars Good Bad Neutral Total Responds 71 16 63 150 Percentage (%) 47.3 10.7 42 100

Graph No: 3.3 [Responds of distributor]

Interpretation: 1. From the above table, it is observed that 71(47.3%) respondents are said that the distributor responds is satisfactory (Good). 2. From the above table, it is observed that 16(10.7%) respondents are said that the distributor responds is bad. 3. From the above table, it is observed that 63(42%) respondents are said that the distributor responds is Neutral.

ROUTE REPORT OF DISTRIBUTOR The following Table and Graph gives the information about the Route report of the Distributor. Table 3.4: [Route report of distributor]

Particulars Good Bad Neutral Total

Survey report 80 20 50 150

Percentage (%) 53.3 13.3 33.3 100

Graph No :3.4[Route report of distributor]

Interpretation: 1. From the above table, it is observed that 80(53.3%) respondents are said that the route report is good. 2. From the above table, it is observed that 20(13.3%) respondents are said that the route report is bad. 3. From the above table, it is observed that 50(33.3%) respondents are said that the route report is neutral.

AVAILABILITY OF REQUIRED ORDER The following Table and Graph gives the information about the Availability of Required order.

Table No3.5: Availability of Required Order

Particulars Yes No Total

Service frequency 96 54 150

Percentage (%) 64 36 100

Graph No 3.5: Availability of Required Order

70

60
50

40 30 20 10
0

Yes

No

Interpretation: 1. From the above table, it is observed that 96 (64%) respondents are the receive order as per required. 2. From the above table, it is observed that 54(36%) respondents are doing not Receive orders as per required.

OFFERS PROVIDED BY THE DISTRIBUTOR The following Table and Graph gives the information about the offers by the Distributor. Table 3.6 : [offers provided by the distributor] Particulars Monetary Non-Monetary No Total Survey report 75 60 15 150 Percentage (%) 50 40 10 100

Graph No : 3.6[offers provided by the distributor]

Interpretation: 1. From the above table, it is observed that 75 (50%) respondents are said that the monetary offers are provided. 2. From the above table, it is observed that 65(40%) respondents are said that the Non-Monetary offers are provided. 3. From the above table, it is observed that 15(10%) respondents are said that not provided any offers.

SCHEMES PROVIDED BY THE DISTRIBUTOR The following Table and Graph gives the information about the Schemes by the Distributor Table No: 3.7 [Schemes provided by the Distributor] Particulars Yes No Occasionally Total Service frequency 18 90 42 150 Percentage (%) 12 60 28 100

Graph No: 3.7 [Schemes provided by the Distributor]

Interpretation: This shows that the distributor does not provide enough schemes on a regular basis to the retail outlets. 1. 60% of them do not receive any schemes, and 28% receive the schemes occasionally. 2. Hence, only 12% of the retail outlets are well served which fetches them the majority of the business.

DELIVERY TIME OF COCA COLA COMPARE WITH COMPETITORS Table No: 3.8 [Delivery Time Compare with Competitor] Particulars Quick Late Moderate Total Service 86 28 36 150 Percentage (%) 57.3 18.6 24 100

Graph No: 3.8[Supply Time Compare with Competitor]

Interpretation: 1. The company having the good Delivery thats why 57.3% are said the coca cola company having quick delivery compare with their competitors. 2. 24% respond that moderate i.e. equal Delivery time. 3. 8.6 reply is the competitors are the best Delivery in particular areas. 1

DO YOU APPROACH OTHERS PARTIES FOR PURCHASE FOR STOCK

Table No: 3.9 [Approach other parties for Purchase] Particulars Yes No Sometimes Total Approach Other Party 24 90 36 150 Percentage (%) 16 60 24 100

Graph No: 3.9[Approach other parties for Purchase]

Interpretation: 1. The 60% of retailers are not approach any others parties for purchase the stock. These means the supply of the coca cola products are good and the distributor work is good. 2. 24% are approach other parties sometimes and remaining 16% are approached other parties when supply is not well.

IF YES, WHOM DO YOU APPROACH (In relation to Question No 9)

Table No: 3.10[Other Party Approach] Particulars Agencies Warehouse Sub dealers Other retailers Others Total Other Party Service 32 16 9 3 60 Percentage (%) 53.3 26.6 15 5 100

Graph No: 3.10 [Other Party Approach]

Interpretation: The remaining 40% of retailers are approached other parties for purchase the stock. 1. In this 53.3% of the retailers went to Agency warehouses and get the stock from them. 2.26.6% approaches the sub dealers for the stock. 3. The remaining 15% from other dealers and 5% from others.

GRIEVANCE REDRESSED BY THE DISTRIBUTOR Table No: 3.11[Grievance redressed by the Distributor] Particulars Yes No Only if pressured Total Service Response 72 12 66 150 Percentage (%) 48 8 44 100

Graph No: 3.11 [Grievance redressed by the Distributor]

Interpretation: The response over the grievance by the distributor is totally good but, sometimes The response is good when wholesaler put pressure on distributor. 1. 48% of the retailers get good response on their problems and they are happy regarding the service. 2. 44% of retailers get the response when they give pressure on distributor.

3. Only 8% are not happy because they did not get response from distributor.

SERVICE OF REFRIGERATOR BY THE DISRIBUTOR Table No: 3.12[service of refrigerator by the distributor] Particulars Good Bad Neutral Total responds 81 16 53 150 Percentage (%) 54 10.7 35.3 100

Graph No: 3.12 [service of refrigerator by the distributor]

Interpretation: 1.From the above table, it is observed that 81 (54%) respondents are said that the refrigerator service is good. 2. From the above table, it is observed that 16(10.7%) respondents are said that the refrigerator service is bad. 3. From the above table, it is observed that 53(35.3%) respondents are said that the refrigerator service is neutral.

PROVIDED MARGIN BY THE DISTRIBUTOR

Table No: 3.13[provided margin by the distributor]

Particulars More than competitor Less than competitor Same the competitor Total

Survey report 60 16 74 150

Percentage (%) 40 10.7 49.3 100

Graph No: 3.13 [provided margin by the distributor]

Interpretation: 1. From the above table, it is observed that 60 (40%) respondents are said that the margin is provided more than competitor.

2. From the above table, it is observed that 16(10.7%) respondents are said that the margin is provided less than competitor.

3. From the above table, it is observed that 74(49.3%) respondents are said that the margin is provided same the competitor.

REASONS FOR LATE DELIVERY

Table No: 3.14 [Reasons for Late Delivery] Particulars Lack of stock Vehicle problem Delivery boys Others Total Response 102 16 8 24 150 Percentage (%) 68 10 5.3 16.6 100

Graph No: 3.14 [Reasons for Late Delivery]

Interpretation:

1. The above graph shows that the reasons for late delivery. Main reason i.e. 68% late delivery for the lack of stock. So, distributor must maintain required stock. . 2. The reasons 10% vehicle problem and 5.3% delivery boys problem. 3. Other problems like weather, strikes and personal are 16.6%.

ANY DISSATISFACTION BY THE DISTRIBUTION CHANNEL

Table No: 3.15 [any dissatisfaction of distribution channel]

Particulars Yes No Some times Total

Survey report 60 16 74 150

Percentage (%) 40 10.7 49.3 100

Graph No : 3.15[any dissatisfaction of distribution channel]

Interpretation: 1. From the above table, it is observed that 60 (40%) respondents are said that, we have dissatisfaction by the distribution channel.

2. From the above table, it is observed that 16(10.7%) respondents are said that we have no dissatisfaction by the distributor channel.

3. From the above table, it is observed that 74(49.3%) respondents are said that we dissatisfaction for some times by the distribution channels.

ORDER QUANTITY INCREASES THEN DELIVERY TIME INCREASED

Table No: 3.16 [Order Quantity increases Delivery Time increases] Particulars Yes No Total Service frequency 46 104 150 Percentage (%) 30.6 69.3 100

Graph No: 3.16 [Order Quantity increases Delivery Time increases]

Interpretation: This shows that the distributor give the delivery of stock to the retailer without late most of the times. 1. 69%of people not accept that means they do receive required order without time delay. 2. For this 30.6% of retailers accept the statement. Order quantity increases then time also increase for delivery.

EFFECTIVE SUPPLY WILL INCREASE- SALES &CUSTOMER SATISFACTION Table 3.17: Effective Supply Increase Sales &Customer Satisfaction

Particulars Agree Disagree Neutral Total

Service frequency 89 17 44 150

Percentage (%) 59.3 29.3 11.3 100

Graph 3.17: Effective Supply Increase Sales &Customer Satisfaction

Interpretation: The response for the statement strongly support that the effective supply definitely increase the sales as well as the sales of the product. 1. 59.3% of the Dealers agree for the statement. 2. Following 29.3% of Dealers are disagreeing with this, Only 11% are neutral means they cant say exactly.

ANY DAMAGES AS FOR ORDER Table No: 3.18[any damages as for order]

Particulars Yes No Some times Total

Survey report 10 100 40 150

Percentage (%) 6.6 66.7 26.7 100

Graph No: 3.18 [any damages as for order]

Interpretation: 1. From the above table, it is observed that 100 (66.7%) respondents are said dont have any damages as per order. 2. From the above table, it is observed that 10(6.6%) respondents are faced damages as per order.

3. From the above table, it is observed that 54(36%) respondents are faced damages sometimes only.

RELATION BETWEEN THE DISTRIBUTORS TO RETAILERS

Table No: 3.19 [Relation between the distributor to Retailers] Particulars Good Bad Total Survey report 100 50 150 Percentage (%) 66.7 33.3 100

Graph No : 3.19 [Relation between the distributor to retailers]

Interpretation: 1. From the above table, it is observed that 100 (66.7%) respondents are said that the relation is good. 2. From the above table, it is observed that 50 (33.3%) respondents are said that the relation is bad.

MODIFICATION IN METHOD OF SUPPLY MAY REDUCE PRICE (OR) NEED MODIFICATION IN PRESENT SUPPLY FOR BETTER RESULTS Table No: 3.20 [Modification in Method of Supply]

Particulars Agree Disagree Neutral Total

Service Modification 63 16 71 150

Percentage (%) 42 10.6 47.3 100

Graph No: 3.20 [Modification in Method of Supply]

Interpretation: 1.42% of the Dealers agree for the statement. 2. Following 10.6% of Dealers are disagreeing with this, Only 47.3% are neutral means they cant say exactly.

FINDINGS The findings drawn from the project study are as follows: There were total 150 outlets surveyed for checking the service provided & efficiency of the distributor in the Tirupathi region of Andhra Pradesh. Approx. 60% of the retailers are satisfied with the service provided by the distributor in Tirupati region. There are 4 Distribution Agencies are there for Tirupati Urban area. Some agencies are not satisfied the retailers with their service. The sales for Coca-Cola products exceed the same for those of Pepsi products. However, the sale of Coca-Cola products is low as compared to its sale in the entire Tirupati which is approx. 73%. Majority of the retail outlets 50.6% not receive sufficient display facility merchandise. The outlets which are well-known and located in main areas only get the facilities. 60% of the retailers are said the rout report is taken good, 13.3% of them said the route report is bad, 26.7% of them cant say exactly. 64% of the outlets receive order as per required, whereas 36% of them do not receive orders as per required. The outlets located in the small streets and away from the city are not getting the order properly. There is a good potential scope of improvement by the distributor in the areas of those outlets which do not get the order as per requirement. 50% of retailers are taken monetary type offers, and 40% of retailers are nonmonetary offers, 10% of them do not receive any offers. 60%of them do not receive any schemes, and 28% receive the schemes occasionally. Only 18% of the retail outlets fetch Coca-Cola the majority of the business. Previously the schemes are good but not very less and schemes giving only few products. Hence, there is a tremendous scope for the company to progress in this area.

 The frequency of service for majority of the retail outlets is very good. Majority of the retail outlets in the Tirupati Urban area (45%) are filled with Coca-Cola stock every day. Some retail outlets are not cover even though they are coming regular in route. But the overall efficiency of the distribution in the Panchvati region of Coca-Cola products is hampered due to the fact that it has a sale of 68% as compared to its sale in the entire Nasik district which is approx., 78%. 50.6% of them do not get required order in the summer season. So need to supply required order in the summer for better sales. The higher sales of out lets served first than fewer sales. The 60% of retailers are not approach any others parties for purchase the stock. These means the supply of the coca cola products are good and the distributor work is good.24% are approach other parties sometimes and remaining 16% are approached other parties when supply is not well. The response for the statement strongly support that the effective supply definitely increases the sales as well as the sales of the product.59.3% of the retailers agree for the statement. The response over the grievance by the distributor is totally good but, sometimes the response is good when wholesaler put pressure on distributor.48% of the retailers get good response on their problems and they are happy regarding the service. The company having the good supply chain thats why 57.3% are said the coca cola company having quick delivery compare with their competitors. The response for the statement strongly support by the retailers for better supply, sales and the company wellbeing.42% of the retailers agree for the statement. Majority 47.3% of retailers are neutral means they cant say exactly. The above graph shows that the reasons for late delivery. Main reason ie 68% late delivery for the lack of stock. So, distributor must maintain required stock. The reasons 10% vehicle problem and 5.3% delivery boys problem. Other problems like weather, strikes and personal are 16.6%. Most of the retailers are facing the problems regarding the coolers. They are

submitted all the documents but not get the coolers. Some retailers have been waiting for years. 50% of the retailers are said service of coolers maintenance (repair) is good, 38% of retailers are neutral means they cant say exactly. 66.7% of Retailers and Distributors are maintaining the good relation, and 33.3% of them have some problems in between retailers and distributors. 66.7% 0f they have faced damages of delivery products as per order, 26.7% of they have faced damages sometimes only, 6.6% of retailers has damages as per order.

SUGGESTIONS We can sum the recommendations in brief as follows: Communications should be improved by fulfilling the demand of product by company. In the field, sales persons work independently and away from the office. Good communication requires interaction between those preparing and those receiving reports. Company should make plans and impart training to the salesperson for better their performance. The route boys also need training to interact with retailers in soft corner. Aggressive Marketing by market developer for increasing the sales volume. Regular visit to distributors for better co-ordination. Improve the market share by: providing efficient & effective distribution catering to busy retailers timely widening the region(i.e. area of sales) Company should adhere to and implement the customers suggestions and complaints about products, service policies, price changes, advertising, etc. Increase in the number of sales vehicles.

Provide better schemes & services in order to gain market share. Pepsi is the only competitor of Coke. We should try to keep every information about the Pepsi i.e. prices schemes, policy, etc. A clear notification should be given to teach distributor and each route agent to give cash memo (printed) and maintain route card for every transaction.

 Facilitate provide by the company should be increased. Facilitate requirement should be fulfilled in all areas (rural and urban) properly after deeply study for various aspects; this is definitely help for the company sales. Provide the good refrigerator facilitates and in some areas there is no refrigerator; solve that problem as early as possible. In particular rural areas should be create the awareness of coke products and conduct the special campaigns. Some of the retailers have grievance about the distributors, so solve the each time, not pressured time.

CONCLUSIONS After conducting the survey and analysis the data collected, it can be concluded that:1. Soft drinks beings as refreshment becoming more and more dominant in the lives of Urban and rural people. In olden days they thought to be taken occasionally or for parties. But now a days consumption of soft drinks becoming casual. 2. In this scenario, the coke and the other products of coke showing tremendous sales. There are many loyal customers 3. The distribution of coca cola products is very fast and the retailers are happy for the service of the distributors. 4. The survey revealed the attraction for distributors about their effectiveness and efficiency and provides better service to the retail outlets. Overall study reveals the distribution channels of the coca cola beverages are very effective and efficient in their service delivery. COKE FULLY concentrating on the distribution channel, they are providing less money to the distributors and retailers, they are doing more work in less expense.

QUESTIONNAIRES
1. What is the efficiency of distributor work? a)Very good b)Good c) Neutral d)Bad

2. What is the frequency of service provided by the distributor? a) Daily b) Weekly c) More than 2 times of weekly d)Infrequently 3. What is the response of the distribution? a)Good b)Bad c)Neutral

4. Is correctly follow the route report? a) Good b)Bad c)Neutral

5. Is it send the correctly the required order? a) Yes b)No

6. Which type of offers is provided by the distributor? a) Monitory b)Non-Monitory

7. Is any schemes are provided by the distributor? a) Yes b) No c) Occasionally

8. What is the position of delivery? a) Quick b) Late c) Moderate

9. Do you approach any other party?(if delivery is late) a) Yes b) No c) Sometimes

10.Whom do you approach? (If Yes) a) Agencies Warehouse b) Sub dealers c) Other retailers d) Others

11.Any Grievance redressed by the distributor? a) Yes b) No c) Some if pressured

12. What is the position of maintenance of refrigerator? a) Good b) Bad c) Neutral

13. How much margin is provided by the distributor ?(compare to competitor) a) More than competitor b) Less than competitor c)Same the competitor 14. What are the reasons for late delivery? a) Lack of stock b) Vehicle problem c) Delivery boys d) Others 15. Any dissatisfaction by the distribution channel? a) Yes b) No c) Sometimes

16. If the Order quantity increases then delivery time increased? a) Yes b) No

17. If any modification in supply, then will get better result of selling? a) Agree b) Disagree c)Neutral

18.Are any damages on your order? a) Yes b) No c) Sometimes

19. What is the Relation between the distributors to Retailers? a) Good 20. b) Bad

If any Modification in method of supply may reduce price (or) Need modification in present supply for better results? a) Agree b) Disagree c) Neutral

21. What is your suggestion to improve the sale? (a) New schemes (c) Advertisement (e) Credit facilities (b) Refrigeration system (d) Reduction in deposits (f) Regular supply

22. What do you feel about the price of branded soft drinks? (a) Very high (b) High (c) Medium (d) Low (e) Reasonable

BIBILIOGRAPHY Philip kotler, marketing management , principles of marketing, seventh edition, 2003

SujaR.Nair, consumer behavior, Himalaya Publishing house, Edition 2006 Etzel, Walker, Stanton and Pandit, Marketing concepts, Tata MC Graw-hill, thirteenth edition. C.R.Kothari, Research and methodology, second edition New Age International Publication. Journals and Publications Of Hindustan Coca Cola Beverages Pvt Ltd Company records

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www.coca-colaindia.com

A STUDY ON DISTRIBUTION CHANNELS

AT HINDUSTAN COCA-COLA BEVERAGE PRIVATE LIMITED, SRIKALAHASTHI, CHITTOR UNIT.

A Project Report Submitted in partial fulfillment of the requirements For the award of the degree of MASTER OF BUSINESS ADMINISTRATION TO

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,

KAKINADA
By M.NAGENDRA REDDY (107X1E0034)

Department of Business Administration SRI VEERA VENKATA SATYANARAYANA ENGINEERING COLLEGE (Affiliated to JNTU, KAKINADA) ONGOLE-523002

(2011-2012)