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 BEVREAGES JUICES WATER SPORTS TEA AND COFEE
DRINKS DRINK

1 COCA- COLA 1.GLACEU 1.FUZE 1.HI-C 1. KINLEY 1.POWE 1.MATTE LEAO

RADE.
*Acquired in *Originated in *Originated in
2007 1946. BRAZIL IN 1969.

Originated in *12 variants. *100 types of tea.

1966.
* 1988.

Originated in 1982. 2.FULL 2.MINUTE 2. HI-C BLAST 2.DASSANI 2.FREES 2.GEOGIA TEA
THROTTLE TYLE. AND COFEE
* 12 variants

MAID

*Acquired in *11 variants. *Originated

1960. in 1993.
Originated in
* 2 variants.
2004.
* 8 variants.

3.COKE ZERO 3.MONESTER 3.MAZZA. 3. HI-C SOUR 3.VIO 3.EATRH AND

BLAST
* 3 Variants.
SKY.

* 2004 *2002

* 3 variants. *4 Variants.

4.RELENTNE 4.ODAWALLA

4. FENTA SS

*1942 *Different *2006

Origin
flavours *3 Variants.
ated in
California
acquired in
2001.
5.LIMCA 5.BUZZ.

Originated in INDIA

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Acquired in 1993.

610.SPRITE
6. BURN

*Originated in
GERMANY in1961.

7. THUMS UP
7.POWERPLA
Y

Originated in INDIA

Acquired in 1993

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

Coca cola enjoyed in 163 countries worldwide.

 It introduced can in 1960.

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  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 is
introduced.

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 emotional
attachment 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 original
formula 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.
 New beverages joined the Company's line-up, including Powerade sports
drink, Qoo® children's fruit drink and Dasani® bottled water.

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 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
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.

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  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

PLANET PROFIT PEOPLE

. Maximising return to share
Being a responsible global owners while being mindful Being a great work place to work
citizen that makes a of overall responsibilities. where people are inspires to be
difference. the best they can be.

PARTNERS PRODUCTIVITY PORTFOLIO

Nurturing a winning network Be highly effective, lean and Bringing to the world portfolio of
of partners and building fast-moving organizations. beverage brands that anticipate
mutual loyalty. and satisfy peoples' desires and
needs

To continue to thrive as a business over the next ten years and beyond, we must look
ahead, understand the trends and forces that will shape our business in the future and
move swiftly to prepare for what's to come.
We must get ready for tomorrow today. That's what our 2020 Vision is all about. It

13
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

José Octavio Reyes President, Latin America Group

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

Glenn G. Jordan S. President, Pacific Group

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.

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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.

Contribution

COBO
35% FOBO

65%

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 MISSION
In 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.

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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
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.

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Versatile Polytech Pvt. Ltd., Gurgoan , Haryana

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

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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
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

Coca-Cola India Manufactures

Division Concentrate, Beverage
base and Syrup

Regional Bottlers Manufactures finished

COBO/FOBO
Bottles/Fountain
Syrup.

Customers

Consumers

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Manufacturing Unit Of KBL, Nabipur , Punjab.

The manufacturing unit of KBL, situated at Nabipur, Punjab is one of the largest
Franchisee owned bottling operations plant of coca cola. The Plant
has 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

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Manufacturing Process

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

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

24
 CHAIN FOLLOWED FROM MANUFACTUE TO DISTRIBUTER

Organisational Structure at KBL

CEO

Ashish Sethi

General Manager

Eesh Stehi

Vice-President

Jaspal Bhatia

DGM Market Execution

Manager
Gurdeep Saggu
Kamal Sharma

SGA Manager Sales Manager Marketing Market Research

Satinder Singh Pragraj Khanna Manager Executive
Mohnish Mehta
Preeti Ramna

Astt Sales
Manager

Sr. Sales
Executive

Sales
Supervisors

Team Leaders

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 Market
developers
Financial statements….

  Salesman
Particulars Amount Amount

ASSETS April 3,2009 March 31,2008

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

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 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

     

  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

27
 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

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 Growth
Year Revenue

2009 $30.990 billion

2008 $31.944 billion

2007 $28.857 billion

28
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.

EarningsGrowth
Year 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 Growth

Year 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 Margin

Coca 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.

29
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.

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

30
INTERNAL

-World leading brand -Advertising only for popular

products.
-Strong financial base
-Lack of popularity of many Coca
-customer loyalty Cola’s brands. Mostly unknown
-Strong relations with the sports and rarely seen.
world. -Health issues.
– Marketing strategies with local
consumer in mind.

Opportunities
Threats
EXTERNAL - Increase in demand of packed - Commodity prices growth
water bottle and extraordinary
profits are available in bottled - The new "healthy" and organic
water industry. food trends

- Diversification for other business - Strong competitors penetration

like Food and snacks. in the non carbonated drinks
market.
- Increase product portfolio in the
non- carbonated drinks market. - Changing health-consciousness
attitude.
- 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).

Strengths-

31
  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 
 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.

32
  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.

180
160
160

140

120
102.2
100
1998
80 Column1

60

40

20 14.2
7.7
0.72 2.16 1.9 2.9
0
INDIA CHINA RUSSIA MEXICO

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

33
  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.

COMPETITORS TO COCA COLA

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

The key competitors in the industry are as follows:

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 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.

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

34
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.

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 .

Comparison of the Logos of Pepsi and Coke:

35
BATTLE OF BRANDS

36
  Market share comparison among Coca-cola and other brands in various
segments.

COLA Maket share

PEPSI
38% THUMS-UP
44%
COCA-COLA

18%

Figure 2 FIGURES FOR 2009

SOURCE AC Nielson

A. Cloudy lemon FIGURES FOR JAN-MAR 09

12.00%
10.90%
10.00%

8.00%

6.00%
Column1
4.00%

2.00%
0.90%
0.00%
LIMCA MIRINDA LEMON

SOURCE AC NELSON

B. ORANGE SPARKLING DRINK.

37
 12%
11%

10%
9%

8%

6%
Column2

4%

2%

0%
FENTA MIRINDA

FIGURES JAN-MAR 09

SOURCE AC NELSON.

C. Clear Lime

18.00%

16.00% 15.30%

14.00%

12.00%

10.00% 8.90%
Column1
8.00%

6.00%

4.00% 3.50%

2.00%

0.00%
SPRITE 7 UP MOUNTAIN DEW

FIGURES JAN-MAR -09

SOURCE AC NELSON.

D. Fruits Drink.

38
 MARKET SHARE OF FRUIT DRINKS

13%

27%
FROOTI
COKE
PEPSI
OTHERS

38%

21%

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.

10.50%
10.30%

10.00%
9.80%

9.50%

9.00%
8.70% Series 3

8.50%

8.00%

7.50%
KINLEY AQUAFINA BISLERI

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

THE BATTLE OF NIMBU PANI”

39
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

40
2009 2008 Country of 2009 Brand Change in Brand
Brand Sector
Rank Rank Origin Value ($m) 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%

Consumer
5 5 Finland 34,864 -3%
Electronics

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%

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

41
 35%

30% 29%

25%

20% 18%
Series 3
15%
12%

10%

5%
5% 4%
2%

0%
INDIA TURKEY BRAZIL LATIN AMERICA FRANCE GERMANY

SOURCE www.thecoca-cola.com

HIGH BCG MATRIX OF COCA COLA INDIA

STARS ?
 Coca cola  Miunte Maid
 Thums-up  Kinley water
 Mazza

COWS DOGS
 Limca  Georgia coffee
 Fanta

HIGH MARKET SHARE LOW

PORTER’S FIVE FORCES MODEL

Threat of new
42
entrants

LOW
 Bargaining power Bargaining
of suppliers Competitive rivalry power of Buyers
within the industry
LOW HIGH
HIGH

Threat of
substitutes

MEDIUM

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.

43
  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.

44
 PART – B

PROJECT
MARKET REVIEW OF 200ML SKU’ STUDY
ON RETAILERS.

About The Product

45
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.

46
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.

47
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

48
Research Methodology

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

49
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.

50
 ANALYSIS AND INTERPRTATION

Types of shops surveyed.

No. Of Outlets Surveyed

E & D 2; 28 Grocerry; 25

Grocerry
Convienence
E&D1
E&D2

Convienence; 27
E & D 1; 20

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.

Sales
2L
22% 300ml
30%

300ml
1.25L 500ml
8% 1.25L
2L
500ml
40%

51
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

50

45 44

40

35 34

30

25

20 19

15

10

5 3

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

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.

52
  Few retailers as of 8% said that salesman doesn’t inform them about
the availability of 200ml.

 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

50

45 44

40
36
35

30

25

20

15
12
10 8

0
< 10% 10% - 20% 20% - 30% 30% & above

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.

53
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

70%

61%
60%

50%

40% 39%

Column1
30%

20%

10%

0%
YES NO
:

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.

54
  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 ;

70%

60% 59%

50%

41%
40%

30%

20%

10%

0%
YES NO

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.

55
THE PLACEMENT DRIVE
During the project time the placement to done in the following outlets:

Sector 7-

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

Sector 8

1. Eating pont
2. Ram sumu pan
3. Pratap garh conf.

Sector 9

1. Jai shahkundri prov store

Sector 10

1. Laxmi store
2. Capital bakers
3. Om prakash traders

Sector 16

1. Sharma conf.
2. Sharma juice bar
3. S. lal conf.

Sector 17

1. Haryana canteen
2. Muskaan,,
3. Snack bar (b.stand)
4. LIC canteen

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 5. Rahul store
6. Shud vaishnu dhaba

Sector 19

1. Verka booth
2. Bedi sons
3. Kesari sweets
4. New kesari sweets
5. Nanak sweets

Sector 20:

1.Mahajan departmental store .

2.Chawla tea stall.

3.Kapoor sweets.

Sector 40

1. Medi zone
2. Rajan khana
3. Malothra snacks
4. Amar sweets
5. Dhingra sweets
6. Gopu ram prov store

Sector 41

1. New milkmade store

2. Tanu juice bar.
3. Punjab diary

Sector 42

1. govt college
2. Ashoka traders

Sector 44

1. Bansal stores
2. Sharma tea stall
3. Chawla provision
4. Ajay karyana

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 5. Dharmpal conff.
6. Dil bahar juice bar
7. Mohan sweets
8. Himachal conff
9. Bholley di hatt

Sector 45

1. Bawa deptt store

2. Bhatia conff
3. Sai conff
4. Brother sweets
5. Manaro sweets

Sector 46

1. Gobind sweets
2. Mehta conf
3. 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 37
3. Bharat petoleum sector 41
4. 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.

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 8. Bharat petroleum sector 17, documents yet to be collected from Mr.Sandeep
the owner of the pump.

 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.

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There is no set up of formal methodology to communicate scheme to the
retailers/traders. This results in less sales and bad trade relations.

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:

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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
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:

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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
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.

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 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.

 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) 300ml
B) 200ml
C) 500ml
D) 1.25lts
E) 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 ______________

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 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.
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 variant
b) Less price difference with 300ml variant
c) Customer highly satisfied with 300ml quantity
d) 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 markets

B) Increasing Display of this variant at shops
C) More advertisement through TV, newspapers, hoardings etc
D) 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

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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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